New York Senate Hearing on Cannabis

The New York State Senate held a hearing earlier this week, where representatives heard testimony from regulators (OCM), dispensary licensees, ancillary business owners, multi-state Cannabis operators and medical cannabis companies among others.

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Many issues and concerns were brought to the forefront, but perhaps the loudest and most glaring of qualms referenced the double standard for illegal Cannabis shops (the thousands of convenience-like shops operating illegally in NYC) and licensed dispensaries. Dispensary licensees drew attention to the fact that illegal smoke shops (who are not subject to lab testing products) have no restrictions on what they can sell, how they can sell it, and how they can market it. Then on the other hand, the licensees attempting to do business the right way, are hampered by many regulations, some non-sensible, like certain advertising restrictions, that make it very tough for them to compete with the illegal smoke shops.

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Coss Marte, the Co-Founder and CEO of CONBUD, a new licensed dispensary on NYC's Lower East Side, demonstrated his concern for not being allowed to market on technology platforms, "I just opened 9 days ago, as soon as I opened, Google said I was not opened. Marketing on a platform isn't allowed for me, but you have all these illicit smoke shops on Google Maps. So when you go on Google Maps, you can't even find us." Since this statement on Monday, it appears CONBUD is now on GoogleMaps, perhaps after a collaborative conversation with regulators.

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Coss also talked about trying his best to serve a diverse community of customers on the Lower East Side, where residents speak Spanish, Chinese, and Cantanese. However, he is not allowed to put any signage up beyond the name of his store, and a logo marking his approval as a licensed dispensary (in English). "I'm doing a disservice to my community." Coss proclaimed. "Let me market the right way." Coss is bringing logical arguments to the State and regulators, and demonstrates the importance of speaking to regulators to help the industry at large.

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Joanne Wilson, Founder and CEO of Gotham, a licensed dispensary off the Bowery, also poignantly analogized "We don't allow unlicensed liquor stores to operate in New York State, why do we tolerate unlicensed Cannabis stores?"

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OCM to our knowledge is very well-intentioned, sharp, and is trying to do everything in its power for the licensed market to flourish. However, coming up with a regulatory framework for a new industry is not easy. This is why it's paramount that communication such as this hearing, and listening to market participants such as Coss and Joanne, serve to help them shape thoughtful and sensible regulation.

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At DeliveryBudz, we know that it's unreasonable to expect OCM to close up every illegal smoke shop in the city. It would probably just become a giant game of Wack-a-Mole. However, they absolutely have the ability to make slight changes in the regulation that will empower licensees to gain a competitive advantage over their nefarious counterparts.

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For instance, OCM must give licensees the ability to market themselves fully, and leverage technology in ways that illegal shops cannot. This will give licensees the competitive edge they're deserving of.

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At DeliveryBudz, we firmly believe that mobile apps like ours, which give consumers a safe, convenient, and engaging way to interact with licensed dispensaries, is vital to the success of the ecosystem. Illegal shops cannot be on DeliveryBudz or other Apps in Apple's App Store. This is a distinct competitive advantage licensees can use to their benefit.

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Technology like DeliveryBudz will serve as an important bridge to bring consumers from the illegal market into the licensed market. We're steadfast on being vital New York's Cannabis ecosystem, and look forward to collaborating with regulators and licensees where possible to shape healthy regulation that sets the standard for the rest of the United States and the world.

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