State marijuana regulators are concerned about a “significant rise” in recent weeks of potential industry investors proposing contractual terms that could violate regulations in an attempt to take advantage of employers’ economic and equity empowerment program social.
Cannabis Control Commission Chairman Steven Hoffman said Thursday that other commissioners and staff have been spared complaints, particularly with limitations on controlling an applicant for marijuana sellers.
In some cases, investors propose aggressive lending conditions that increase the likelihood that an entrepreneur will be unable to pay and will therefore lose control of their business.
“This is an issue that has been of concern to us for some time and we have focused on it for a while and there has been a recent positive increase,” Hoffman told reporters after the committee meeting. “The fact that there are few alternatives available to some of these applicants means they are probably more open to considering some of these terms than they would if they had any other option.”
Hoffman said he could not make an accurate estimate of how many incidents have occurred recently, but said he has personally received between ten and fifteen complaints in the past two months, most of them related to negotiations over delivery operations.
The commission will work to raise awareness on the ground so that entrepreneurs in the economic empowerment and social equity program, who will have exclusive access to exclusive delivery licenses with the ability to buy marijuana wholesale for the first three years of delivery according to the regulations approved in November. they are aware of the resources available if they feel unduly pressured.
“We don’t care about telling applicants it’s a good business or a bad business. That’s for their judgment, “Hoffman said.” That’s for their judgment. We’re not trying in any way to shape or prevent them from hiring a contract that they think interests them. It’s not our role. It is clear to me that if it crosses the line of violating our regulations, we will discover it and have clear tools in our arsenal to deal with it ”.