Nevada Senator: Secrecy in MMJ Licensing Process a ‘Disaster’

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Nearly 40% of the 519 businesses that applied for medical cannabis business licenses in Nevada have chosen to remain anonymous, taking advantage of a stipulation in the state’s MMJ law that allows applicants to withhold their information from public view.

A state senator believes that’s a big problem, saying the anonymity option gave rise to questions regarding political favoritism in the licensing process.

“It’s been a disaster,” Sen. Richard ‘Tick’ Segerblom, D-Las Vegas, told the Las Vegas Review-Journal.

Segerblom said he plans to carry legislation this year that will reverse the policy of at-will anonymity, with the exception of proprietary information such as finances and tax records. If his bill succeeds, the identities of the 199 companies that chose to keep their names secret will become public record.

But even that step might not entirely do away with the cloak-and-dagger atmosphere in Nevada.

Some of the license applicants are limited liability corporations registered by lawyers representing the true owners. These attorneys argue that they are not required to identify their clients.