IT'S BEEN TWO YEARS SINCE NEW YORK LEGALIZED MARIJUANA AND PAVED THE WAY FOR THE CREATION OF ADULT RECREATIONAL SALES.

WITH MARIJUANA DISPENSARIES NOW SLOWLY OPENING UP AROUND THE EMPIRE STATE, WE'RE GOING TO EXAMINE THE EVOLVING MARKETPLACE AND THE WORK OF STATE CANNABIS REGULATORS.

ALL THAT - AND MUCH MORE - COMING UP ON CONNECT NEW YORK.

♪ ♪ ♪ ♪ WELCOME TO CONNECT-NEW YORK.

I'M DAVID LOMBARDO-- HOST OF WCNY'S THE CAPITOL PRESSROOM, A DAILY PUBLIC RADIO SHOW, BROADCASTING FROM THE STATE CAPITOL.

ON TODAY'S SHOW WE'RE GOING TO CHAT WITH A PANEL OF CANNABIS INSIDERS AND STAKEHOLDERS ABOUT THE RECREATIONAL MARIJUANA LANDSCAPE IN NEW YORK, INCLUDING WHY - AFTER TWO YEARS - IT HAS BARELY TAKEN SHAPE AND CONSIDER WHAT IT COULD END UP LOOKING LIKE.

BUT FIRST, OUR PRODUCER, SUSAN BITTER, BRINGS US A STORY FROM RIGHT HERE IN CENTRAL NEW YORK, ABOUT SOME OF THE BUSINESSES WAITING TO ENTER THE RETAIL MARIJUANA BUSINESS.

>> THIS IS FLINTSTONE, A 13,000 SQUARE FOOT BUILDING FOR RETAIL CANNABIS DISPENSARY AND NOW WE ARE JAWFT WAITING FOR OUR LICENSE SO WE CAN OPEN UP AND START SELLING.

WE ARE COMPLETELY READY.

OUR DISPLAY CASES, OUR PSO IS SET UP.

THE DISPLAY CASES ARE EMPTY UNFORTUNATELY.

WE HAVE HIRED 22 EMPLOYEES SO FAR.

WE ARE JUST WAIT ON THE DATE WE CAN OPEN AND GET OUR PRODUCTS IN.

NEW YORK STATE IS ROLLING OUT SLOWLY THEIR LICENSES FOR ITS CALLED THE CARD APPLICATION, WHICH IS THE CONDITIONAL ADULT USE RECREATIONAL DISPENSARY.

WE APPLIED FOR THAT.

SO FAR NEW YORK HAS ONLY OPENED THREE CANNABIS DISPENSARIES AND THE OTHER ISSUE WE ARE HAVING IS THE INJUNCTION FOR CENTRAL NEW YORK.

THE INJUNCTION IS BEING HELD UP BY A COMPANY THAT IS TRYING TO SET UP IN CENTRAL NEW YORK THAT IS FROM OUT OF STATE.

BUT ACCORDING TO THE REGULATIONS, YOU CAN ONLY OWN 10% OR LESS OF A COMPANY IF YOU ARE FROM OUT OF STATE SO THEY'RE TRYING TO FIGHT THAT.

SOME OTHER HURDLES ARE BROAD ADVERTISING AND THINGS LIKE THAT.

WE ARE GOING TO HAVE TO RELY ON SOCIAL MEDIA AND THE COMMUNITY.

YOU CAN'T DO BILLBOARDS OR COMMERCIALS BEFORE A CERTAIN TIME OF THE DAY BECAUSE IT NEEDS TO NOT APPEAL TO ANYBODY UNDER 21.

SO WE ARE KIND OF LIMITED ON WHAT WE CAN DO THERE.

SO I REALLY THINK SOCIAL MEDIA UNDERSTAND AND THE WORD OF MOUTH AND THE COMMUNITY IS GOING TO BE THE BIGGEST THING FOR US.

>> CARD IS FOR PEOPLE WHO FORMERLY HAD CONVICTIONS AND BUSINESS EXPERIENCE AND EXTENDED TO THE FAMILY MEMBERS OF THOSE WITH CANNABIS CONVICTIONS.

IT'S SOMETHING WE WERE REALLY HAPPY TO LAUNCH AND SOMETHING WE ARE REALLY PROUD OF AND WE RECEIVED OVER 900 APPLICATIONS AND WE HAVE STARTED HANDING OUT THE LICENSES AND ARE CURRENTLY FOUR DISPENSARIES OPEN ACROSS THE STATE AND WE ARE PLANNING ON OPENING A LOT MORE SOON.

REALLY THE FIRST PIONEERS.

AND ORIGINALLY WE, AS THE OFFICE OF CANNABIS MANAGEMENT AND THE DORMITORY AUTHORITY OF THE STATE OF NEW YORK AS A SUPPORTING AGENCY IN THE PROGRAM ALLOTTED 150 LICENSES FOR THESE INDIVIDUALS TO CARD APPLICANTS BUT THE LAST BOARD MEETING LAST WEEK ACTUALLY, WE JUST ANNOUNCED WE WERE GOING TO EXPAND THE 150 LICENSE CAP TO 300.

AND THAT'S A REALLY BIG STEP BECAUSE WE ARE VERY AWARE THAT PEOPLE ARE EAGER, PEOPLE ARE EXCITED AND THERE IS A LOT OF CAPABLE ENTREPRENEURS.

WE ARE JUST WAITING FOR THE OPPORTUNITY TO GET INTO THE RETAIL DISPENSARY MARKET.

>> IT HAS BEEN DIFFICULT AND A LACK OF COMMUNICATION WHERE CENTRAL NEW YORK PRIMARILY STANDS BECAUSE OF THE INJUNCTION.

AND I UNDERSTAND THEY CAN'T TALK ABOUT IT, BUT JUST HAVING SOME KIND OF COMMUNICATION OF WHEN THEY EXPECT IT, YOU KNOW, WHERE WE ARE IN THE APPLICATION PROCESS.

WE DON'T EVEN KNOW IF THE INJUX IS CLEARED UP, IF WE ARE OKAY, IF OUR APPLICATION WAS ACCEPTED.

SO I THINK THAT'S THE BIGGEST CHALLENGE WE'VE HAD SO FAR WORKING WITH THE GOVERNMENT IS THE LACK OF COMMUNICATION.

>> YOU HAVE TO REMEMBER THE FIRST LEGAL CANNABIS SEEDS WERE PLANTED IN APRIL OF 2021.

WE'VE CREATED A WHOLE CANNABIS ECOSYSTEM.

AND WITH THE INTENTIONALITY OF HAVING AN EQUITY FIRST APPROACH, WE REALLY WANT TO MAKE SURE WE GET THIS RIGHT.

WHAT WE'VE SEEN ACROSS THE EAST COAST, WHAT WE HAVE SEEN ACROSS OTHER STATES THAT HAVE TRIED TO IMPLEMENT THEIR OWN EQUITY APPROACH IS THAT MORE OFTEN THAN NOT, IT'S NOT LONGEVITY FOR THOSE WHO RECEIVED EQUITY LICENSE OR PART OF THE EQUITY PROGRAM.

THEY MIGHT GET A LICENSE PER SE BUT THEY DON'T HAVE A PHYSICAL LOCATION.

IT IS A CONCERTED EFFORT TO MAKE SURE THE COMMUNITIES THAT ARE NOT REPRESENTED DO HAVE THE ENTREPRENEURS, DO HAVE THE COMMUNITY STAKEHOLDERS, MAKING SURE THEY GET THE FIRST MOVE OR ADVANTAGE.

AND WE HAVE SEEN A LOT OF OTHER STATES, IT'S CORPORATIONS THAT GO FIRST.

NO ONE WANTS TO SEE IT GET MONOPOLIZED BY THESE BIG CORPORATIONS AND KIND OF RUIN THE ELEMENT OF COMMUNITY, ELF SPECIFICALLY WHEN WE LOOK AT THE WAR ON DRUGS, WE LOOK AT THE RATE IN WHICH BLACK MEN WERE INCARCERATED, THE RATE IN WHICH FAMILIES WERE TORN APART AND THE RATE OF STOP AND FRISK.

THERE IS COUNTLESS HARMS THAT IS IMPOSSIBLE TO QUANTIFY AND THIS IS A SMALL MEASURE IN WHICH WE WANT TO START ADDRESSING THE HARMS DONE BY THE NEW YORK STATE GOVERNMENT AND MAKING SURE WE CAN HIT THAT FACE ON.

WE CAN FRONT CONFRONT A TROUBLING PAST BY INVESTING IN OUR COMMUNITY'S FUTURE.

>> DOWNTOWN NEEDS A CHANCE FOR THIS.

THERE ARE A LOT OF STORES THAT ARE CLOSED.

IF YOU WALK AROUND ARMORY SQUARE, A LOT OF STORE FRONTS ARE CLOSED.

WE REALLY THINK THAT GETTING THOUSANDS OF PEOPLE DOWN HERE WILL REVIVE THE CITY AND WE WANT TO OFFER A PLACE THAT IS SAFE FOR PEOPLE TO GO, SAFE PRODUCT AND SAFE ENVIRONMENT.

KNOW WHERE THE SEED IS COMING FROM, YOU KNOW, IN THE GROUND, WE KNOW WHAT THEY USE TO GROW IT, AND HAVE AN INVITING PLACE AND AN EDUCATIONAL PLACE IF THEY'RE NEW TO THE MARKET, AND EVEN IF THEY'RE NOT, TO SEE ALL THE DIFFERENT THINGS WE'VE DONE.

>> AS DISPENSARIES OPEN UP IN THE STATE OF NEW YORK, IT'S GOING TO BE REALLY PIVOTAL THAT NEW YORKERS SEE THAT THE TAX DOLLARS THAT ARE SPENT AT YOUR LEGAL LOCAL DISPENSARY WILL BE REINVESTED INTO THE COMMUNITY.

THAT MONEY IS GOING BACK TO HARLEM.

IT CHANGES THE WAY WE, AS CITIZENS, AS THE GOVERNMENT, WANT TO FRAME THE MARKET THAT, YOU KNOW, WORKS TO HELP GROW IN CENTRAL.

>> AND NOW, TO HELP US MAKE SENSE OF THIS EVOLVING STORY, WE'RE JOINED IN THE STUDIO BY ALLAN GANDLEMAN, CO-FOUNDER OF MAIN STREET FARMS IN THE FINGER LAKES, PRESIDENT OF THE CANNABIS ASSOCIATION OF NEW YORK, AND - YES, WE'VE GOT MORE - A MEMBER OF THE STATE'S CANNABIS ADVISORY BOARD, AND ALSO WITH US IN THE STUDIO IS BRAD RACINO, EDITOR AND PUBLISHER OF NEW YORK CANNABIS INSIDER.

AND ZOOMING IN REMOTELY IS BRITNI TANTALO, CO-FOUNDER AND CEO OF THE NEW YORK CARD COALITION, AND CO-FOUNDER AND PRESIDENT OF THE FLOWER CITY DISPENSARY IN ROCHESTER.

SO, I WANT TO BEGIN WITH YOU BRITNI AND YOUR PURSUIT TO OPERATE A MARIJUANA DISPENSARY.

WHY IS THIS SOMETHING YOU WANT TO DO?

>> PERSONALLY FOR ME, I HAVE BEEN IN THE CANNABIS INDUSTRY FOR ALMOST A DECADE NOW ON THE ANCILLARY SIDE.

I HAVE A BUSINESS WITH MY HUSBAND.

WE MANUFACTURE AND WHOLESALE INDOOR GROW EQUIPMENT TO HYDROPONIC STORES AND SMOKE SHOPS AND MOST RECENTLY IN 2021, WE ACTUALLY OPENED UP LOCALLY A RETAIL BRICK AND MORTAR STORE IN OUR LOCAL COMMUNITY.

SO CANNABIS BUSINESS AND RETAIL HAS REALLY BEEN INGRAINED IN US.

MYSELF, I HAVE BEEN A CANNABIS USER SINCE I WAS VERY YOUNG, SO, YOU KNOW, WHEN YOU FALL IN LOVE WITH THE PLANT, YOU FALL IN LOVE WITH THE PLANT.

>> WHAT WAS IT LIKE WHEN THE STATE OPENED UP ITS FIRST ROUND OF APPLICATIONS AND THE PROMISE AND OPPORTUNITY THAT WAS PRESENTED BY THIS?

AND THEN TO ULTIMATELY GET SHUT OUT OF THE FIRST ROUND OF MARIJUANA LICENSES DISTRIBUTED BY THE STATE?

>> WELL, WHEN CARD, THE CARD PROGRAM WAS ANNOUNCED, I FELT IT WAS ALMOST FATE.

I PERSONALLY CARRY A CANNABIS CONVICTION.

I WAS ABLE TO OVERCOME THAT TIME OF MY LIFE AND SHOW A PROFITABLE BUSINESS EXPERIENCE.

I FELT, YOU KNOW, REALLY DRAWN TO THIS PROGRAM AND GRATEFUL THAT NEW YORK STATE WAS TAKING THAT APPROACH TO RIGHT THAT WRONG.

IN DEFENSE OF, YOU KNOW, KIND OF HOW THIS ROLLOUT HAS WENT, THE INJUNCTION REALLY HAS IMPACTED WHAT I BELIEVE TO BE, YOU KNOW, MOST OF WHY THINGS HAVE SLOWED DOWN.

MY FIRST CHOICE WAS THE FINGER LAKES.

I'M LOCATED IN ROCHESTER, NEW YORK.

AND WE ARE A COMMUNITY THAT HAS AN EXTREMELY HIGH HOMICIDE RATES AND POVERTY RATES.

AND THIS CANNABIS OPPORTUNITY WAS HUGE FOR US OR ECONOMIC DEVELOPMENT AND JOB CREATION.

SO THE INJUNCTION KIND MUCH PUT THAT ON HOLD AND UNFORTUNATELY, YOU KNOW,IT IS THE CONSEQUENCE OF IT.

>> WELL, BRAD, BRITNI MENTIONED THE INJUNCTION AND THAT HAS TO DO WITH A COURT PROCEEDING LAUNCHED IN RESPONSE TO THE PROCESS CREATED BY THE STATE HOW THEY'RE GOING TO DOLE OUT APPLICATIONS.

CAN YOU EXPLAIN A LITTLE BIT THE CHALLENGE TO NEW YORK'S LICENSING SYSTEM?

>> UNDER THE INJUNCTION?

>> YEAH.

>> BASICALLY WHAT HAS HAPPENED IS SOMEONE HAS FILED A CASE AGAINST THE STATE OF NEW YORK A COMPANY CALLED VERISIGH ONE.

THEY WERE ISSUED A CARD UNDER THE PROGRAM AND REALLY IT COMES DOWN TO WHAT NEW YORK HAD IN THE APPLICATION CRITERIA FOR WHO CAN GET A LICENSE AND WHETHER YOU ARE A NEW YORK STATE RESIDENT OR IF YOU HAVE A LONG STANDING RELATIONSHIP WITH THE STATE.

THIS PERSON BELIEVED THEY DID.

SO WHAT HAPPENED WAS, AFTER THIS INJUNCTION WAS FILED BY THE COURT IN NOVEMBER, THE OFFICE OF CANNABIS MANAGEMENT HAD TO NOT AWARD LICENSES IN FIVE DIFFERENT REGIONS IN THE STATE WHICH PUTS A HOLD ON A HUGE AMOUNT OF WHERE THESE LICENSES COULD BE DOLED OUT.

NOW, I THINK ON MARCH 2, THE OCM IS GOING TO COURT AND SOMETHING MAY HAPPEN AFTER THAT.

I DON'T KNOW IF THE INJUNCTION WILL BE LIFTED OR A STAY BUT THAT HAS BEEN A HUGE HURDLE FOR THE STATE TO OVERCOME IN IT GOING PEOPLE LIKE BRITNI AND OTHERS THE LICENSES THEY'RE GOING AFTER AND IT HAS PUT A SERIOUS DAMPER ON THE ROLLOUT.

>> WHAT DO YOU THINK OF THE EMPHASIS THAT THE STATE HAS PUT ON PROMOTING OPPORTUNITIES FOR BUSINESS OWNERS WITHIN NEW YORK OR WITH CLOSE TIES TO NEW YORK?

IS THAT THE RIGHT WAY TO OPERATE THIS MODEL?

>> YEAH, I DON'T THINK THERE IS A RIGHT WAY.

IT'S SOMETHING THAT HAS NEVER BEEN DONE BEFORE ANYWHERE ELSE IN THE COUNTRY.

I'M SIMILAR TO BRITNI, I HAVE BEEN ARRESTED FOR CANNABIS SEVERAL TIMES AND OWN MY OWN BUSINESS.

I'M ON THE SUPPLY SIDE SO I WOULDN'T GO FOR ONE OF THE CARD LICENSES, BUT I THINK IN TERMS OF TRYING TO DO RIGHT BY PEOPLE WHO HAVE BEEN HARMED BY THE WAR ON DRUGS, YEAH, THIS IS A GREAT IDEA.

WE'LL SEE HOW IT PLAYS OUT.

BUT JUST THE FACT THAT YOU CAN GIVE SOMEONE A LICENSE WHO HAS BEEN ARRESTED HASN'T REALLY BEEN DONE BEFORE.

I REMEMBER WHEN THE STATE OF COLORADO FIRST OPENED UP LEGALIZED CANNABIS, YOU COULDN'T EVEN HAVE A CONVICTION OR FELONY TO EVEN WORK IN THE INDUSTRY.

SO WE HAVE COME A LONG, LONG WAY IN JUST A HANDFUL OF YEARS.

I REALLY HOPE THIS CARD PROGRAM CAN WORK.

AND I THINK IT CAN WORK.

BUT IT'S BEEN A LOT BUMPIER THAN THE STATE HAD ANTICIPATED WHEN THEY HAD CREATED IT.

>> OUR FOCUS IS ON THE RETAIL SIDE, SORT OF THAT CONSUMER EXPERIENCE.

BUT YOU MENTION YOU HAVE THAT PERSPECTIVE OF A SUPPLIER.

THAT ALSO HAS AN EMPHASIS ON NEW YORK PRODUCTS, RIGHT?

>> IT DOES.

WE ARE RELYING ON THE CARD STORES TO OPEN.

ORIGINALLY THERE WERE SUPPOSED TO BE 150 OF THEM AROUND THE STATE, NOW THERE IS SUPPOSED TO BE 300 WHICH WE CAN DISCUSS.

BUT WITHOUT THE CARD STORES OPENING, ALL OF THE SUPPLIERS, THERE ARE 292 LICENSED CULTIVATORS, ALL SMALL FARMS, ALL UNDER ONE ACRE, VERY SMALL OPERATIONS GREW CANNABIS LAST YEAR, YOU KNOW, HARVESTED IN OCTOBER AND NOVEMBER AND THEY STILL DON'T HAVE ANYWHERE TO SELL IT OUTSIDE-- THERE ARE FOUR STORES THAT ARE CURRENTLY OPEN OUT OF THE 150 THAT, YOU KNOW, WE SHOULD BE SEEING AND SO IT'S ALMOST THE PLANTING SEASON AGAIN, YOU KNOW, COME MAY, WE WILL BE PLANTING AND IT'S A LITTLE CONCERNING.

>> WILL YOU BE PLANTING BECAUSE YOU HAVE ALL THESE TROPS PROBABLY HANGING UP IN THE BARNS AND DRYING AREAS WAITING TO BE USED.

>> A LOT OF PEOPLE ARE NOT SURE WHAT THEY'RE GOING TO DO YET.

IT IS A DELICATE SITUATION.

IF WE DON'T PLANT AGAIN AND THE STATE DOES OPEN 300 STORES BY THE NEXT HARVEST SEASON FOR NEXT YEAR, WE WON'T HAVE ANY CANNABIS TO SELL IN THE STORES BECAUSE THERE IS NO INDOOR FACILITIES IN NEW YORK.

WE'VE CHOSEN THE ROUTE OF MOSTLY GROWING OUTDOOR IN GREENHOUSES OR SUSTAINABILITY REASONS AND SO IF THE STATE IS GOING TO OPEN THE STORES, WE DO NEED FARMERS TO GROW AGAIN.

BUT THAT'S ASKING THEM TO TAKE A HUGE RISK, IT'S A BIG BURDEN ON THEIR SHOULDER.

CANNABIS IS A VERY EXPENSIVE CRAP TO GROW AND DRY AND GET READY FOR SALE.

YOU KNOW, WE WERE TOLD THAT BY DECEMBER OF 2022, THERE WOULD BE 20 STORES AND SO PEOPLE WERE GETTING READY FOR THAT.

YOU KNOW, RIGHT NOW THERE IS, LIKE I SAID, THE FOUR STORES, SO PEOPLE HAVE SOME REALLY HARD DECISIONS TO MAKE IN THE NEXT FEW MONTHS.

AND I THINK THE NEXT FEW MONTHS WITH THE CARD PROGRAM, IF THE STORES DO START OPENING AND, YOU KNOW, THERE IS SUPPOSED TO BE A FUND ASSISTING A LOT OF THE STORES.

IF THAT GETS, YOU KNOW, FILLED OUT IN TERMS OF FUNDRAISING AND STARTS BEING HANDED OUT, MAYBE PEOPLE WILL BE MORE BULLISH ON IT.

IF IT DIDN'T HAPPEN, PEOPLE MIGHT, YOU KNOW, KIND OF TAKE A BREAK THIS YEAR OR GROW A LOT LESS THAN THEY THOUGHT THEY WOULD.

>> THAT WAS AN EXCELLENT TRANSITION BECAUSE YOU MENTIONED THE FUND.

BRAD, THIS IS ANOTHER COMPONENT THAT HAS NOT GONE AS PLANNED.

CAN YOU TALK ABOUT THE SOCIAL EQUITY FUND AND HOW IT WAS IS ENVISIONED BY THE GOVERNOR, STATE LAWMAKERS AND WHAT IT IS ACTUALLY MATERIALIZED INTO AS WE TALK ON MARCH 10?

>> THIS IS A FUN SUBJECT.

>> FUN SUBJECT BUT SAD AND DEPRESSING.

YOU ARE NOT LAUGHING.

YOU ARE CRYING.

>> EXACTLY.

GOVERNOR HOCHUL ANNOUNCED THIS EARLY LAST YEAR AS PART OF THIS SEEDING OPPORTUNITY INITIATIVE WHICH WAS A MULTISTEP PROCESS TO GET THE MARKET ROLLED OUT AND AS PART OF IT, FOR THE CARD PROGRAM SPECIFICALLY, THE STATE WAS ENVISIONING THIS $200 MILLION FUND THAT WOULD BE OPERATED, NOT BY THE OCM BUT BY THE DORMITORY AUTHORITY OF THE STATE OF NEW YORK.

>> OCM IS THE OFFICE OF CANNABIS MANAGEMENT.

>> YES.

SO AS PART OF THIS PLAN, DASNY WAS TASKED WITH FINDING A FUND MANAGER AND THIS PERSON WAS RESPONSIBLE FOR RAISING $ 150 MILLION IN PRIVATE INVESTMENT TO GO INTO THIS FUND AND THE STATE OF NEW YORK IS GOING TO KICK IN OR HAS KICKED IN ANOTHER $50 MILLION SO $200 MILLION TOTAL AND THIS IS THE BUCKET OF MONEY DASNY WILL USE TO FIND LOCATION AS ROUND THE STATE FOR THESE CARD DISPENSARIES, SECURE THEM, YOU KNOW, DO ALL THE LEASING.

AND THEN RENOVATE THEM SO THAT BASICALLY PEOPLE LIKE BRITNI AND OTHERS COULD GO INTO THE STORE, A TURN KEY OPERATION.

FROM DAY ONE, EVERYTHING IS THERE AND THAT'S WHAT YOU NEED.

THE PROBLEM IS THAT THEY PICKED-- DASNY PICKED A FUND MANAGER IN JUNE AND AS FAR AS WE KNOW, THEY HAVE RAISED ZERO DOLLARS SO FAR AND THE FUND MANAGER THAT THEY PICKED WAS NBA HALL OF FAMER CHRIS WEBER AND HIS BUSINESS PARTER IN ADDITION TO A PRIVATE INVESTMENT COMPANY IN NEW YORK CITY, AND THEY HAVE, ALL THAT WE HAVE HEARD IS SILENCE FROM DASNY, FROM THEM.

NOBODY CAN GET ANY ANSWERS ABOUT ANY OF THIS, WHAT IS GOING ON BEHIND THE SCENES.

AND THAT IS BEEN A MAJOR PROBLEM.

AND THE OFFICE OF CANNABIS MANAGEMENT HAS HAD TO PIVOT BECAUSE THEY SAW THE WRITING ON THE WALL, THERE IS NO MONEY HERE WHAT DO WE DO?

WHICH LED THEM TO TELL LICENSEES THAT THEY CAN NOW FIND THEIR OWN LOCATIONS.

THEY DON'T HAVE TO RELY ON DASNY AND AS YOU SAW MOST RECENTLY, THEY DOUBLED THE AMOUNT OF CARD LICENSES.

I BELIEVE AND I THINK IT'S SAFE TO SAY, IT WAS IN RESPONSE TO THIS AS WELL BECAUSE THEY'RE HOPING THE NEXT CROP OF PEOPLE THAT THEY'RE CHOOSING HAS THE FINANCIAL CAPABILITY TO GO OUT AND FIND INVESTORS AND FIND THEIR OWN LOCATIONS AND THEY DON'T HAVE TO, AGAIN, BE RELYING ON DASNY.

THAT'S WHERE WE ARE IN EARLY MARCH.

>> AND I SHOULD PUT A PLUG IN FOR INSIDE CANNABIS REPORTER BECAUSE YOUR REPORTING ON THE SOCIAL EQUITY FUND HAS LED ALL OTHER REPORT REPORTING AND PEOPLE SHOULD SUBSCRIBE TO YOUR LET'S LET IF THEY WANT MORE OF BREAKING NEWS.

BRITNI, WHAT DOES THE LACK MUCH A FULLY FUNDED SOCIAL EQUITY FUND MEAN FOR BUSINESSES LIKE YOURSELF.

YOU HAVE WORKED IN THE RETAIL SPACE PREVIOUSLY.

DO YOU FEEL LIKE IF THE DOOR OPENS FOR YOU TO OPEN UP YOUR OWN DISPENSARY, THAT YOU WILL BE ABLE TO TAKE THINGS ON YOURSELF OR WILL YOU NEED THE SOCIAL EQUITY MONEY TO INVEST IN THAT INFRASTRUCTURE?

>> PERSONALLY, MY BUSINESS, I WOULD CONSIDER IS A SMALL BUSINESS, SO I WOULD BE LOOKING TO UTILIZE THE FUND.

WHAT I HAVE FOUND IN NAVIGATING THE PROCESS TO OBTAIN CAPITAL AS A WOMAN MINORITY, IT'S VERY DIFFICULT.

SO THAT WAS ANOTHER HUGE BENEFIT OF THIS CARD PROGRAM WAS THAT WE WOULD HAVE ACCESS TO THIS FUND THROUGH THE STATE AND SO IT RELEASED SOME OF THAT BURDEN FOR MY ACCESS TO CAPITAL.

I WOULD BE SOMEBODY PERSONALLY LOOKING TO UTILIZE THAT FUND.

>> WOULD IT BE-- WOULD IT MAKE IT SO YOU COULDN'T OPEN A DISPENSARY WITHOUT FUNDS?

WOULD YOU BE ABLE TO LEVERAGE OTHER MONEY OR HAS YOUR EXPERIENCE IN THE PRIVATE MARKET LOOKING FOR FINANCING LED YOU TO BELIEVE THAT YOU JUST COULD NOT MOVE FORWARD WITHOUT ACCESS TO THE SOCIAL EQUITY FUND?

>> I DO NOT BELIEVE THAT I WOULD NOT BE ABLE TO MOVE FORWARD.

WHEN OCM MADE THE CHANGE, THEY DID IT HAND IN HAND.

INITIALLY WE WERE NOT ABLE TO SEEK OUTSIDE INVESTMENT.

WE HAD TO GO THROUGH THE FUND AND TAKE THE TURN KEY DISPENSARY.

SO NOW THAT WE DON'T HAVE TO DO THAT, IT ALSO OPENS US UP TO BEING ABLE TO SEEK THAT.

SO I'M NOT SAYING THAT I WOULDN'T BE ABLE TO OBTAIN IT.

I KNOW THAT THE CANNABIS INDUSTRY HAS, IT CHANGES BY THE SECOND.

THINGS ARE MADE MORE ACCESSIBLE EACH DAY AND PEOPLE ARE ENTERING NEW YORK STATE CANNABIS AS WE SPEAK.

BIG BUSINESS, BANKS AND SO FORTH.

BUT IT WOULD DEFINITELY MAKE IT MORE DIFFICULT BUT DEFINITELY NOT UNACHIEVABLE.

>> ALLAN, AS PRESIDENT OF THE CANNABIS SITUATION OF NEW YORK, IS HER STORY UNIQUE OR ARE YOU HEARING FROM OTHER MEMBERS AND INTERESTED PARTIES AROUND NEW YORK THAT THIS IS THE CHALLENGE THEY'RE FACING AS WELL.

>> I THINK BRITNI'S STORY IS PRETTY COMMON ON THE CARD SIDE.

IT IS TRUE.

IT IS VERY HARD TO RAISE MONEY IN CANNABIS NOWADAYS, ESPECIALLY AFTER WHAT IS HAPPENING IN CALIFORNIA WHERE THE MARKET IS REALLY CRASHING, YOU KNOW, AND THE CAPITAL MARKETS THEMSELVES ARE NOT IN A GOOD PLACE RIGHT NOW.

WHEN THEY WERE, IT WAS A LOT EASIER FOR PEOPLE TO TAKE RISKY BETS ON CANNABIS.

RIGHT NOW IT IS HARD TO RAISE MONEY.

IS IT POSSIBLE?

YEAH, IT'S POSSIBLE BUT IT TAKES A LONG TIME AND KIND OF WHAT BRITNI JUST MENTIONED IF SHE KNEW-- I'M GOING TO MAKE SOME ASSUMPTIONS IF SHE KNEW FROM DAY ONE APPLYING TO CARD, SHE COULD BE BRINGING HER OWN STORE BACK IN NOVEMBER, BY THIS POINT IN TIME, SHE PROBABLY COULD HAVE HAD SOMEONE TO HELP FUND THIS STORE FOR HER.

BUT EVERYONE WAS WAITING FOR THE FUND TO HAPPEN, WHICH, IN ITSELF, IS A NOVEL CONCEPT.

BUT IT CAN HELP PEOPLE.

AS A SMALL BUSINESS, I JUST WANT TO MAKE SURE THAT PEOPLE UNDERSTAND THAT R FOR A SMALL CANNABIS BUSINESS SPECIFICALLY, IT IS VERY DIFFICULT TO EVEN HAVE A BANK TO BANK WITH YOU.

SO IT'S HARD TO GET A BANK.

IT'S HARD TO GET INSURANCE.

IT'S HARD TO GET PAYROLL.

THE BASIC FINANCIAL SERVICES THAT ARE OUT THERE, GETTING A LINE OF CREDIT OR A LOAN OR A CREDIT CARD IS PRACTICALLY IMPOSSIBLE.

AND SO IF YOU ALREADY A SMALL BUSINESS AND OPERATING A SMALL BUSINESS, IT'S HARD TO DO THOSE THINGS IN GENERAL.

ADD CANNABIS TO IT, IT'S REALLY LIKE, REALLY HARD.

THAT'S WHY A LOT OF PEOPLE WERE LIKING THE FUND IDEA.

BUT IF IT TAKES TOO LONG, PEOPLE ARE JUST GOING TO HAVE TO FIGURE OUT ANOTHER WAY TO FUND THEIR OPERATIONS.

IT IS POSSIBLE.

AND WOULD I LIKE TO STATE HERE THAT I MENTIONED THERE ARE 292 FARMERS GROWING CANNABIS.

THEY GOT LICENSED LAST APRIL OR MAY.

AND WITHOUT A FUND, REAL REGULATIONS OR ANY SORT OF INTERVENTION WHATSOEVER, WE ARE ABLE TO PLANTED A CROP, GROW IT, HARVEST IT, MANUFACTURE IT, LAB TEST IT AND GET IT TO MARKET BY THAT DECEMBER.

SO IN UNDER WHATEVER THAT IS, EIGHT MONTHS, IN A VERY UNCOMPLICATED SYSTEM, YOU KNOW, YOU HAD ALMOST 300 SMALL BUSINESS OWNERS SAYING LET ME JUST FIGURE THIS OUT AND A LOT OF THEM FIGURED IT OUT.

AND I THINK THE CARD POOL IS THE SAME WAY.

THERE IS A LOT OF REALLY GOOD SMALL BUSINESS OWNERS THAT THEY WILL FIGURE THIS OUT AND IF THEIR DISPENSARY STARTS OFF VERY LOW KEY AND ONLY A FEW REGISTERED AND IT'S NOT A FANCY $1.5 MILLION BUILD YUT IN TIMES SQUARE, THEY'RE GOING HAVE A DISPENSARY IN ROCHESTER.

IT MAY NOT BE THE SHOW PIECE OF THE STATE, BUT IT'S A START AND THEY CAN BUILD OFF OF THAT.

SO I DO WANT TO SAY THAT IS STILL A POSSIBILITY AND I THINK A LOT OF PEOPLE LIKE BRITNI AND SOME OF THE OTHER CARD BUSINESS OWNERS WHO HAVE HAD SOME EXPERIENCE RUNNING RETAIL SPECIFICALLY, COULD PULL THIS OFF ON THEIR OWN IF THE REINS WERE REALLY TAKEN OFF AND THE STATE JUST SAID GO AHEAD AND FIGURE THIS OUT.

WE'RE NOT GOING TO GET IN YOUR WAY.

>> WELL, IS IT A FAILING THOUGH, OF THE PROGRAM AS IT IS DESIGNED THAT SOMEONE LIKE BRITNI CAN'T PARTNER WITH A PASSIVE INVESTOR, SOMEONE WHO HAS GOT THE MONEY?

SHOULD THAT BE AN ELEMENT OF THIS?

>> THAT IS ALLOWED.

SO THAT IS ALLOWED IN NEW YORK.

BRITNI CAN SELL A PORTION-- I DON'T WANT TO SPEAK FOR BRITNI BUT THE CARD APPLICANTS CAN SELL A PORTION OF THEIR BUSINESS TO A PASSIVE INVESTOR.

>> WHAT ABOUT VERTICALLY INTEGRATED BUSINESSES THOUGH?

I SHOULD HAVE GOTTEN TO THE SECOND SENTENCE OF MY NOTES THERE.

>> BEFORE I GET TO THAT, IN TERMS OF WHO INVESTS IN BRITNI'S BUSINESS, YOU CAN'T HAVE ONE GIANT PRIVATE EQUITY FIRM INVEST IN EVERY DISPENSARY 234 NEW YORK STATE.

THERE IS A LIMIT OF HOW MUCH PERCENT OF A BUSINESS YOU CAN SELL TO A LARGER INVESTOR TO KEEP THE SMALL AND MID SIZED BUSINESS NATURE OF THE CANNABIS INDUSTRY IN NEW YORK AND THAT IS REALLY PART OF THE MRTA, THE LAW IN STATUTE AS IT WAS WRIT TONE KEEP THIS INDUSTRY NOT VERT THEIR INTEGRATED-- VERTICALLY INTEGRATED WHICH IS A TWO TIER SYSTEM WHICH IS LIKE ALCOHOL.

ARE YOU ON THE SUPPLY SIDE OF THE INDUSTRY OR RETAIL SIDE OF THE INDUSTRY?

AND IF YOU ARE ON ONE OR THE OTHER, YOU CANNOT HAVE ANY OWNERSHIP OR FINANCIAL INTEREST AT ALL, EVEN LANDLORD INTEREST TO THE OTHER SIDE.

ME AS A CULTIVATOR, IF I HAD THE MONEY TO INVEST, I CANNOT GO TO BRITNI AND SAY HERE IS SOME MONEY TO OPEN YOUR STORE AND I'M JUST GOING TO BE LIKE A MINORITY 5% OWNER.

THAT IS NOT ALLOWED IN NEW YORK.

THAT'S WHAT YOU ARE TALKING ABOUT WITH THE VERTICAL SYSTEM AND THE TWO TIER SYSTEM.

IT'S VERY SIMILAR TO ALCOHOL IN NEW YORK STATE, WHICH, AGAIN, THE ONLY OTHER STATE THAT HAS THIS IS WACKER TOON STATE-- WASHINGTON STATE.

ALL OTHER STATES ALLOW VERTICAL INTEGRATION.

AND AS THE CANNABIS ASSOCIATION OF NEW YORK HAT AND CULTIVATOR MYSELF, I AM 100% IN SUPPORT OF THE TWO-TIER SYSTEM BECAUSE WAS WE HAVE SEEN IN OTHER MARKETS WHERE YOU LET PEOPLE BE VERTICALLY INTEREST INTEGRATED WITH NO LIMITATIONS, YOU HAVE PURE CONSOLIDATION AND YOU END UP WITH A FEW HUGE COMPANIES RUNNING MOST OF THE WHOLE STATE'S SUPPLY CHAIN AND SALES CHAIN SO IT'S A GREAT SYSTEM.

BUT NEW YORK, BECAUSE AGAIN, WE ARE REALLY PIONEERING SOME OF THIS STUFF IN CANNABIS, THEY'RE STILL WORKING OUT THE KINKS HOW TO GET MONEY TO FLOW THROUGH AND BUILD SOME OF THESE COMPANIES.

>> BRITNI DO YOU HAVE THOUGHTS ON THE FINANCING DISCUSSION?

>> OH I JUST WANTED TO MENTION ABOUT THE FUND THAT, YOU KNOW, BEING A C.E.O.

OF THE NEW YORK CARD COALITION AND BEING ABAPPLICANT-- BEING AN APPLICANT MYSELF, I GET TO SPEAK TO A LOT OF LICENSE HOLDERS AND CURRENT APPLICANTS AND THERE ARE PEOPLE THAT HAVE THEIR OWN MONEY, YOU KNOW, WHEN THE OFFICE OF CONDITIONS MANAGEMENT DECIDED TO INCREASE FROM 150 TO 300, THERE IS LOGIC BEHIND IT.

INITIALLY WHEN PEOPLE WERE TOLD THAT THEY COULD NOT USE THEIR OWN MONEY, NOT EVERYBODY WAS HAPPY ABOUT THAT.

NOT EVERYBODY WANTED TO BORROW FROM THE STATE AND HAVE TO FOLLOW, YOU KNOW, PRETTY STRING EBT GUIDELINES-- STRINGENT AND GUIDELINES PARAMETERS OF THE FINANCING AND HAD AVENUES TO TAKE.

I DO HAVE CONFIDENCE THAT ALONG WITH THE ACCELERATOR PROGRAM THAT THEY JUST RELEASED AND PEOPLE HAVING THE BUSINESS CALIBUR AND FINANCIAL BACKING, THAT WE WILL SEE A LOT OF DISPENSARIES COMING FORWARD VERY SOON.

>> SO BRAD, AS WE ARE TALKING RIGHT NOW, THERE IS ONLY A HANDFUL OF LEGAL RECREATIONAL MARIJUANA SHOPS OPEN IN NEW YORK, BUT IF PEOPLE LIVE IN NEW YORK CITY OR IN OTHER UPSTATE METRO AREAS, THEY'RE PROBABLY NOT UNFAMILIAR WITH THE OPPORTUNITIES TO BUY MARIJUANA FROM ONLINE OPTIONS FROM EVEN SOME STORE FRONTS.

CAN YOU TALK ABOUT THE STATE AND SCOPE OF THE ILLEGAL MARKET RIGHT NOW, WHICH IS SEEMING TO EXPLODE SINCE MARIJUANA BECAME LEGAL IN 2021?

CAN YOU HELP US WRAP OUR HEAD AROUND LEGAL MARIJUANA BUT ILLEGAL SALES?

>> YEAH, THERE ARE-- YOU CAN COME OUT TO THE STUDIO AND GO LEFT OR RIGHT AND YOU WILL FIND A DISPENSARY.

BUT BASICALLY WHAT HAPPENED AFTER THE MRTA WAS SIGNED PEOPLE STARTED OPENING UP SHOP BECAUSE THERE WASN'T AS MUCH OF A DISINCENTIVE TO DO SO.

A CRIMINAL DISINCENTIVE AND WHAT WE FOUND MANY, MANY MONTHS AGO, WE DID A SURVEY OF 11 DIFFERENT DISTRICT ATTORNEYS AROUND THE STATE AND ASKED THEM, WOULD YOU PROSECUTE AND IF YOU DID, UNDER WHAT LAW?

REASON IT FOR US.

AND WHAT WE FOUND WAS A LOT OF DA'S SAYING WE ARE NOT GOING TO TOUCH THIS BECAUSE WE ARE NOT SURE WHAT TO DO HERE AND THEY WERE NOT GETTING DIRECT GUIDANCE FROM, YOU KNOW, THE STATE ON WHAT IS ALLOWED AND WHAT IS NOT.

THE OCM CAME OUT EARLY ON AND SAID EVERY DISPENSARY THAT IS OPERATING THAT IS NOT LICENSED IS OPERATING ILLEGAL, BUT...

BUT THERE WASN'T THE ENFORCEMENT ARM.

AND STILL TODAY THERE REALLY ISN'T THAT MUCH OF IT.

I KNOW THE OCM IS RAMPING UP THE ENFORCEMENT SIDE BUT THE AMOUNT OF RESOURCES THAT WOULD BE NECESSARY TO NOW GO AFTER ALL OF THESE UNLICENSED SHOPS, AND THE ESTIMATE WAS THERE WERE AT LEAST 1400 IN NEW YORK CITY ALONE, I'VE HEARD THAT'S A VERY CONSERVATIVE ESTIMATE.

PROBABLY TWICE AS MANY.

THAT'S JUST IN THE CITY.

THEN YOU HAVE THE ENTIRE REST OF THE STATE.

IT'S GOING TO BE REALLY, REALLY DIFFICULT FOR THE STATE TO GET ITS ARMS AROUND THIS PROBLEM THAT HAS BEEN GROWING SINCE MARCH OF 2021.

AND IT IS ALSO GOING TO BE A PROBLEM FOR PEOPLE LIKE BRITNI AND OTHERS WHO ARE GOING THROUGH PROCESS TO GET LICENSE AND THEY'RE SELLING A PRODUCT THAT IS MORE EXPENSIVE THAN WHAT YOU ARE GOING TO FIND AT AN UNLICENSED DISPENSARY AND COMPETING WITH THE PRODUCT WHEN CONSUMERS MAY NOT KNOW THE DIFFERENCE.

THERE NEEDS TO BE A PARALLEL EDUCATIONAL CAMPAIGN.

>> MAYBE A STAMP OR SOMETHING ON THESE WINDOWS?

>> WELL, YOU KNOW, WE GET QUESTIONS EVERY SINGLE DAY.

NEW YORK CANNABIS INSIDER.

IF IT IS ILLEGAL, HOW COME THERE IS A SHOP OUTSIDE MY HOUSE OR MY APARTMENT.

WE TAKE FOR GRANT WHAT WE KNOW IN THE INDUSTRY.

A LOT OF PEOPLE DON'T KNOW THE DIFFERENCE AND THAT IS A PROBLEM NOT ONLY FOR OCM BUT PUBLIC HEALTH PROBLEM AND IT'S SOMETHING THAT WE ARE GOING TO HAVE TO SEE HOW THE STATE GRAPPLES WITH OVER THE COMING YEAR.

>> WELL, BRITNI AS YOU AWAIT A RETAIL LICENSE TO SELL MARIJUANA LEGALLY AND THE RESOLUTION OF THIS COURT CASE, HAVE YOU CONSIDERED SELLING MARIJUANA ILLEGALLY FROM A STORE FRONT THAT YOU MIGHT OWN?

ON THE RECORD?

>> ABSOLUTELY NOT.

>> AND HOW COME?

>> THE REASON I SAY THAT IS THE STORES THAT I HAVE HERE LOCALLY ARE VERY FRIENDLY TO CHILDREN.

THE ATMOSPHERE WE BRING IS VERY PROFESSIONAL.

CANNABIS IS VERY PROFESSIONAL.

AND IT IS NOT, I GUESS, WHAT A LOT OF THE STIGMAS ARE AND THAT'S WHAT WE ARE TRYING TO BREAK.

HOME CULTIVATION, COMMERCIAL CULTIVATION, ALL OF IT IS A SCIENCE AND WE REALLY WANT TO HAVE PEOPLE CHANGE THAT MIND SET AND LOOK AT IT FROM AN EDUCATIONAL STANDPOINT.

I HAVE TO BE HONEST, IT'S VERY DIFFICULT TO SEE THE ILLICIT STORES OPEN IN ROCHESTER WHILE, YOU KNOW, MYSELF AS A CARD APPLICANT, HAS BEEN UNABLE TO, YOU KNOW, MAKE A DOLLAR OR REINVEST INTO THE COMMUNITY THE RIGHT WAY AS I AWAIT THIS INJUNCTION.

IT'S REALLY UNFORTUNATE AND DEFINITELY FRUSTRATING.

>> HOW WOULD YOU WANT TO SEE THE OFFICE OF CONDITIONS MANAGEMENT OR-- OFFICE OF CANNABIS MANAGEMENT OR LAW ENFORCEMENT RESPOND TO THIS ESPECIALLY AFTER BEING ENTANGLED WITH THE LAW ENFORCEMENT.

DO YOU HAVE SECOND THOUGHTS ON LAW ENFORCEMENT COMING DOWN ON THEM?

HOW SHOULD IT BE HANDLED?

>> I THINK IT CAN BE HANDLED A COUPLE OF DIFFERENT WAYS.

THE OFFICE OF CANNABIS MANAGEMENT IS BUILDING A TASK FORCE AND THAT'S ONE APPROACH.

ANOTHER APPROACH IS, YOU KNOW, THROUGH OUR TAX STRUCTURE.

I KNOW THAT SENATOR THEY'RE ACTIVELY WORKING TO REDUCE THE POTENCY TAX WHICH IS WONDERFUL BUT IF YOU LOOK AT THE TAX STRUCTURE IN ITS ENTIRETY, ACCESS TAX HAS DOUBLED 16%.

YOU TIE THAT WITH 4% LOCAL TAX, WE ARE AT 20% IN COMPARISON TO OTHER STATES, SUCH AS NEW JERSEY OR PLZ MOSCOW, WE SEE 9.25, 8% INCLUDING LOCAL TAX.

SO MOST STATES WITH LEGAL CANNABIS HAVE DECIDED TO KIND OF NOT GO OVER A 10% THRESHOLD IN ORDER TO ALLOW LEGAL CANNABIS TO COMBAT THE ILLICIT MARKET.

SOME STATES MIGHT JUST HAVE 8%.

SOME STATES, I BELIEVE, IT MIGHT BE MISSOURI-- FORGIVE ME IF I'M MISTAKEN.

THEY STARTED AT 6% TO END AT 10% OVERA FIVE-YEAR PERIOD OF TIME.

I THINK THE TAX STRUCTURE REALLY NEEDS TO BE VISITED TO HELP BEAR THAT BURDEN IF WE CAN'T, YOU KNOW, GO RIGHT TO THE STREETS AND SHUT THEM DOWN.

>> SO ALAN, AT THE RISK OF BORING OUR VIEWERS, CAN YOU EXPLAIN HOW CANNABIS IS TAXED FROM GROWING TO WHEN IT'S FINALLY PURCHASED AND WHAT IT MEANS TO BE TAXING THE POTENCY OF THE PRODUCT?

>> I WILL TRY NOT TO BE BORING.

WE HAVE A LOT OF CPAS WHO WATCH THIS BUT FOR THE ONES WHO DON'T HAVE A DEGREE IN FINANCE... >> WHEN NEW YORK HAS HERE IS THE POTENCY TAX WHICH MEANS WE ARE TAXING HOW STRONG THE PRODUCT IS.

THE STRONGER YOUR PRODUCT IS, THE MORE MONEY YOU ARE PAYING TO GET THE PRODUCT.

>> IN RELATIONSHIP TO HOW MUCH THC.

>> IN RELATION TO HOW HIGH YOU GET FROM THE PRODUCT.

AND TO MAKE IT MORE COMPLICATED, WE HAVE THREE DIFFERENT SETS OF PRODUCTS.

WE HAVE, YOU KNOW, EDIBLES THAT ARE TAXED AT A CERTAIN RATE, WHICH ARE THE GUMMIES AND LIKE THAT.

THEN YOU HAVE JUST YOUR CANNABIS FLOWER, THE RAW MATERIAL THAT YOU ARE BUYING TO ROLL A JOINT WITH OR PUT IN YOUR BONG.

AND THEN YOU HAVE YOUR CONCENTRATED AND VAPES SO THE MORE CANS TRAITED CANNABIS-- CONCENTRATED CANNABIS IS TAXED AT A HIGHER RATE BECAUSE IT'S VERY POTENT.

SO WHAT HAPPENS IS THE DISTRIBUTOR HAS TO PAY THE TAX.

THIS IS A REALLY, REALLY HIGH TAX.

FOR EXAMPLE, ON THE I'VE-- I'LL USE THE GUMMIES.

FOR EVERY TIN OF GUMMIES WE SELL, THERE IS A $3 TAX THAT I PAY AS THE DISTRIBUTOR.

HOWEVER WHEN I SELL IT TO THE RETAILER WHOLESALE THAT TAX GETS ADDED INTO HOW THEY DO PRICING AND SO THAT CONSUMER IS ACTUALLY NOW PAYING $6 PER TIN OF GUMMIES IF YOU BOUGHT IT FOR 30 BUCKS AT THE REGISTER, YOU HAVE PAID $6 OF THAT ALL ENDS UP BECAUSE OF THE TAXES AND THEN LIKE WHAT BRITNI WAS SAYING, THERE IS STILL ANOTHER 13 OR 14% AT THE REGISTER ON TOP OF THE $$30 SO YOU END UP PAYING A SIGNIFICANT AMOUNT OF TAXES HERE IN NEW YORK , MORE SO THAN IN MOST STATES.

BUT ALSO IT IS INSANELY COMPLICATED, WHERE RIGHT NOW WE ARE OWING OUR TAX BILL FOR THE FIRST QUARTER OF 2023.

AND IT'S TAKEN-- I HAVE THREE ACCOUNTANT BELIEVES-- ACCOUNTANTS WE EVERYBODY SELLING TO FOUR STORES OVER TWO MONTHS AND THEY HAVE PUT IN 20 HOURS OF WORK JUST TO FIGURE OUT HOW MUCH TAX MONEY WE OWE AND WE STILL DON'T KNOW.

SO WE ARE GETTING THERE.

BUT SO IT'S A LOT.

IT'S A LOT OF WORK.

IT'S JUST A VERY COMPLICATED SYSTEM.

>> AND CAN YOU EXPLAIN WHAT THE ALTERNATIVE COULD BE THAT IS PROPOSED IN THIS NEW LEGISLATION THAT IS KICKING AROUND THE CAPITOL WHICH I HAVE TO IMAGINE GOING THROUGH THE PROCESS OF AS IFING BILLS IN ALBANY RELATED TO CANNABIS, IT HAS TO BE A HEAVY LIFT TO OPEN UP THE ISSUE ONCE AGAIN.

>> IT HAS BEEN A HEAVY LIFT.

WE HAVE A PROPOSED BILL LIKE BRITNI WAS SAYING AND THE PROPOSED BILL RIGHT NOW MAKES IT VERY SIMILAR TO MASSACHUSETTS.

IN MASSACHUSETTS THERE IS NO TAXES ON THE SUPPLY CHAIN.

AND THE ONLY TAX THAT EXISTS ALL IN WITH LOCAL TAX IS 20% AT THE REGISTER.

THAT IS THE MASSACHUSETTS MODEL.

AND THIS BILL IS SIMILAR TO THAT WHERE THERE WILL BE NO TAXES IN THE SUPPLY CHAIN SO NONE OF THE COMPLICATED POTENCY TAX OR WHOLESALE TAX.

IT'S JUST THE REGISTER TAX.

IT'S SIMPLER AND MORE FAIR TO THE SYSTEM AND WILL BRING THE PRICES DOWN SO THAT PEOPLE LIKE BRITNI CAN COMPETE WITH THE ILLICIT STORES THAT INEVITABLY WILL BE A BLOCK AWAY FROM HER.

>> WILL WE LOSE STATE REVENUES IF WE LOWER THE TAXES ULTIMATELY BY CHANGING TO THE DIFFERENT MODEL?

>> FROM OUR MODELS, THE STATE REVENUES STAY ABOUT THE SAME ACTUALLY WITH THIS MODEL.

>> BECAUSE THEY'RE SELLING MORE AS A RESULT?

>> WELL, THEY'RE ABSOLUTELY GOING TO SELL MORE.

IN WASHINGTON STATE, THE MINUTE THEY LOWERED THEIR TAXES, THE SALES INCREASED BY LIKE 50%.

BUT ALSO BECAUSE IN THIS TAX MODEL THAT I JUST MENTIONED WITH THE GUMMIES, THE STATE IS ONLY COLLECTING $3 OF THAT TAX.

BUT IT'S INCREASED THE PRICE OF THE FINAL PRODUCT BY $6 THE WAY THE MARKUPS HAPPEN IN WHOLESALE AND RETAIL.

SO THE STATE IS NOT COLLECTING SIX.

THEY'VE ONLY COLLECTED THREE BUT THE CONSUMER HAS NOW PAID 6 BASICALLY ON THE BACK END SO IT SHOULD BE REVENUE NEUTRAL AND A LOT MORE SIMPLE.

>> THE OTHER COMPONENT WE TALKED ABOUT WITH REGARDS TO ENFORCEMENT WAS THE NUMBER OF BODIES THAT THE OFFICE OF CONDITIONS MANAGEMENT-- CANNABIS MANAGEMENT ACTUALLY HAS RIGHT NOW.

I READ THEY HAVE MORE PEOPLE THAN THE STATE LIQUOR AUTHORITY, BUT FROM JUST TRYING TO EDGE GAUGE WITH THEM-- ENGAGE WITH THEM AS A REPORTER, DO YOU FEEL THEY HAVE ENOUGH PEOPLE TO TAKE ON REGULATIONS, TAKE ON ENFORCEMENT AND WHATEVER NEW CHALLENGES THEY'RE GOING TO HAVE AS THIS INDUSTRY CONTINUES TO EVOLVE?

>> NO?

[LAUGHTER] I MEAN IT'S SOMETHING THAT THEY WOULD SAY OPENLY.

LIKE THEY'RE STAFFING UP.

THEY'RE RAMPING UP.

I THINK THE IDEAL NUMBER-- AND I COULD BE WRONG HERE BUT I THINK THEY WANTED TO HIT AROUND 250 EMPLOYEES AND AT LAST CHECK A COUPLE MONTHS AGO THEY WERE AROUND 150 OR SO.

SO ON THE ENFORCEMENT SIDE THAT'S OBVIOUSLY NOT ENOUGH.

I CAN'T SPEAK TO IF IT'S ENOUGH ON THE REGULATORY SIDE.

I FLOW SPEAKING TO ENOUGH OF THEM THAT THEY'RE WORKING CRAZY HOURS AND WORKING A LOT AND THAT'S GOING TO LEAD TO BURNOUT AMONG SOME OF THE FOLKS, ESPECIALLY, I'M ASSUMING SOME OF THE UPPER LEADERSHIP.

THEY NEED TO GET MORE PEOPLE IN THERE TO RETAIN STAFF AND ALSO TO ACCOMPLISH SOME OF THE THINGS I THINK THEY WANT TO ACCOMPLISH IN THE NEXT YEAR OR SO.

>> I WILL ADD TO THAT, THAT THERE IS AN ENFORCEMENT BILL FLOATING AROUND OUT THERE THAT HASN'T BEEN FILED YET THIS SESSION.

IT WAS LAST SESSION BY AT LEAST ON THE ASSEMBLY SIDE, BUT THE SENATE DID THOUGHT PICK IT UP.

SO HOPEFULLY THIS TIME AROUND, THERE WILL BE AN ENFORCEMENT BILL AND FROM THE CANDY PERSPECTIVE, WE DON'T WANT TO SEE PEOPLE RECRIMINALLIZED AND TAKEN TO JAIL FOR CANNABIS, BUT OUR GOAL IS TO HAVE ENFORCEMENT WORK LIKE BRITNI WAS SAYING FROM A TAX PERSPECTIVE AND POTENTIALLY BE GOING AFTER LANDLORDS WHO ARE RENTING TO THESE SHOPS, KNOWING THAT THEY'RE RENTING TO AN ILLEGAL BUSINESS, YOU KNOW, USING THAT AS LEVERAGE.

AND WE FEEL LIKE ESPECIALLY IN NEW YORK CITY, THAT CAN SHUT DOWN A LOT OF THE SHOPS PRETTY QUICKLY SO THAT, YOU KNOW, THE OCM OR THE POLICE ARE NOT GOING DOOR TO DOOR BUSTING THEM, SHUTTING THEM DOWN.

I MEAN I THINK SENDING A MUCH LARGER MESSAGE WITH TAX, YOU KNOW, TAX ISSUES AND BIG FINES.

IN CANADA YOU HAVE A MILLION DOLLAR A DAY FINE IF YOU ARE RENTING TO AN ILLEGAL OPERATION LIKE THAT.

SO I THINK THERE ARE OTHER THINGS WE CAN DO TO STREAMLINE THE SHUTTING DOWN OF THESE ILLICIT SHOPS.

AND I CAN TELL YOU FROM AT LEAST WHERE I LIVE IN MY SMALL TOWN OF CORTLAND, OUR POLICE OFFICERS ARE BUSTING THE ILLEGAL SHOPS.

JUST A COUPLE WEEKS AGO THEY BUSTED AN ILLEGAL CBD SHOP SELLING VAPES TO 13 YEAR OLDS.

SO THESE SMALLER COMMUNITIES, I THINK, ARE FOCUSING ON THAT BECAUSE THERE IS ONLY ONE OR TWO STORES IN TOWN THAT THEY CAN ACTUALLY GO AFTER BUT ONCE YOU GET TO THE BIGGER CITIES, NEW YORK CITY SPECIFICALLY, GOING DOOR TO DOOR, SHUTTING THEM DOWN IS PROBABLY A TASK THAT IS NEVER GOING TO BE ABLE TO BE ACHIEVE DISPLD WE MENTIONED THE LEGISLATION ON THE ENFORCEMENT SIDE.

IS IT A BILL THAT YOU LIKE?

OR IS THIS ONE OF THE LEGISLATIVE BILLS OR DEALING WITH MARIJUANA OUT THERE THAT ARE KIND OF MORE REMINISCENT OF POLICIES PRE-2021?

>> I HAVEN'T SEEN THE NEW BILL THAT IS CURRENTLY BEING NEGOTIATED.

>> HOW ABOUT THE VERSION THAT EXISTED IN 2022?

>> THE LAST YEAR'S VERSION, YEAH, IT WAS SOMETHING THAT WE COULD GET BEHIND.

IF IT'S SOMETHING SIMILAR, I THINK IT COULD HAVE SOME TRACTION BECAUSE IT'S GIVING ENFORCEMENT POWERS TO THESE OTHER GOVERNMENT AGENCIES LIKE THE OCM AND LIKE THE DEPARTMENT OF TAX TO ACTUALLY DO ENFORCEMENT BECAUSE RIGHT NOW THEY DON'T REALLY HAVE THAT POWER.

SO THEY HAVE TO BE GIVEN POWER TO DO ENFORCEMENT.

>> SO BRITNI SPEAKING OF BILLS THAT HAVE BEEN INTRODUCED IN ALBANY,THE PHIL STEC HAS TWO BILLS OR DEALING WITH MARIJUANA AND ONE WOULD BASE COMPLI RESTRICT THE POTENCY OF WHAT IS ALLOWED TO BE SOLD IN NEW YORK AND THE OTHER WOULD PROHIBIT THE SALE OF EDIBLES.

WE SPOKE WITH ASSEMBLYMAN STEC ON HOUR RADIO SHOW, THE CAPITOL PRESS ROOM AND HE SAID HE DOESN'T WANT EITHER OF THESE BILLS TO PASS BUT THEY'RE PART OF A CONVERSATION TO BE HAD ON BOTH ISSUES.

DO YOU THINK THERE NEEDS TO BE LIMITS ON SAY THE POTENCY OF WHAT IS SOLD AND THE TYPES OF PRODUCTS THAT ARE SOLD?

>> I DON'T.

I THINK THAT IT'S, YOU KNOW, BEEN PROVEN PEOPLE LIKE HIGH POTENCY STRAINS.

PEOPLE WANT THE EFFECTS OF IT, NOT TO SAY THERE WON'T BE A MARKET THAT TAILORS TO MAYBE MORE CBD LOW THC.

BUT I DEFINITELY THINK THAT, JUST LIKE WITH ANYTHING, YOU KNOW, WITH ALCOHOL, I MEAN THERE ARE THINGS THAT CAN BE 90 PROOF, 100 PROOF AND YOU KNOW, THINGS THAT ARE 30 AND 40.

I THINK IF IT'S REGULATED AND DONE PROPERLY AND PEOPLE ARE EDUCATED ON WHAT THEY'RE CONSUMING, I THINK IF IT CAN BE DONE SAFELY, IT SHOULDN'T BE PASSED.

>> ALLAN, ASSEMBLYMAN STEC BROUGHT UP THE ISSUE OF MARIJUANA INDUCED PSYCHOSIS.

ARE YOU CONCERNED ABOUT THAT BECAUSE OF THE MARIJUANA PRODUCTS FOR SALE RIGHT NOW IN THE MARKET.

>> I'M NOT CONCERNED ABOUT THAT AND I HAVE BEEN A CANNABIS USER MY ENTIRE LIFE.

HOWEVER I'M NOT A PUBLIC HEALTH OFFICIAL SO I DON'T WANT TO SPEAK FOR THE DOCTORS AND PUBLIC HEALTH OFFICIALS.

IS THAT A THING THAT IS POSSIBLE THAT IS OUT THERE YES, PROBABLY BUT SO IS ALCOHOLISM AND WE HAVE BEEN OR DEALING WITH THAT AS A SOCIETY FOR QUITE SOMETIME.

SO I THINK, YOU KNOW, THERE ARE SOME GUARD RAILS IN PLACE HERE.

THE EDIBLES RIGHT NOW CAN'T BE OVER 10 BILL GRAHAMS PER PIECE OR 100-MILLIGRAMS PER PACKAGE AND THAT'S A REALLY LOW AMOUNT PER PACKAGE IF YOU LOOK AT OTHER STATES.

THEY HAVE WAY, WAY HIGHER LIMITS.

SO NEW YORK HAS ALREADY PUT IN, I'LL CALL THEM TEMPERANCE IDEAS IN PLACE TO OUR CANNABIS PROGRAM SO ADDING MORE RESTRICTIONS ON THEM, I DON'T THINK WOULD MAKE ANY SENSE WHATSOEVER.

>> IS THAT A NEGATIVE CONNOTATION THE WORD TEMPERANCE?

>> IT IS WHAT IT IS.

>> I BET YOU WOULD HAVE BEEN FUN DURING PROHIBITION, ALLAN.

I THINK WE SHOULD HAVE GONE TO YOUR HOUSE.

BRAD, ANOTHER THING I WANT TO TURN TO, IS THIS IDEA THAT PRODUCTS LIKE EDIBLES MIGHT BE LIKE CANDY FOR KIDS THEY MIGHT SEE THE PACKAGING.

THEY MIGHT SEE GUMMIES THAT THEIR PARENTS ARE EATING AND THEY MIGHT BE INCLINED TO EAT THEM AND BRITNI NOTED THAT KIDS ARE SOMETHING THAT WE NEED TO BE CONSCIOUS OF.

WHAT, IF ANYTHING, HAS THE STATE, THROUGH THE OFFICE OF CANNABIS MANAGEMENT DONE TO TRY TO DETER PEOPLE UNDER THE AGE OF 21 FROM UTILIZING THESE PRODUCTS, ELF, I THINK OF PACKAGING REGULATIONS AND THE MARKETING STUFF.

WHAT HAVE THEY DONE IN THIS SPACE SO FAR?

>> THE AGENCY'S GOALS ARE EXACTLY WHAT YOU SAID, DETER UNDERAGED USE AND THE LABELING REGS HAVE BEEN ADOPTED, MEANT DO THAT BY PROHIBITING, YOU KNOW, NEON COLORS ON THE PACKAGING LIKE CARTOONISH FONTS, ANYTHING THAT WOULD YOU ASSOCIATE WITH CHILDREN, WHETHER THAT'S-- ESPECIALLY A LOT OF LOOK ALIKE CANDIES WHERE WILLY WONKA BARS OR SKITTLES.

THERE IS A LOT OF THAT OUT THERE.

THEY WANT TO PROHIBIT UNDERAGE USE.

>> WILLY WONG WONKA BARS ARE A REAL THING.

>> AT LEAST IN THE CANNABIS WORLD THEY ARE.

>> AND SO DO YOU THINK THOSE REGULATIONS MAKE SENSE?

ARE THEY A HAMPER FOR BUSINESSES?

>> I MEAN WE HAVE SOME OF THE CANNABIS PACKAGING REGULATIONS IN THE COUNTRY.

NO BUBBLE LETTERS, NO NEON LETTERS.

>> KIDS LOVE BUBBLE LETTERS.

>> AND DRIPPING BUBBLE LETTERS.

WE CANNOT HAVE THOSE AND ALSO WHAT IS UNIQUE IN NEW YORK, HAVE YOU TO HAVE CHILD RESISTANT PACKAGING THAT IS RESEALABLE.

SO IF YOU OPEN UP THE GUMMIES AND YOU TAKE ONE OUT AND CLOSE THAT PACKAGE, IT HAS TO BE CHILD RESISTANT EVERY SINGLE TIME.

IN OTHER STATES, SOMETIMES IT'S ONLY CHILD RESISTANT FOR THE FIRST OPENING AND THEN THAT'S IT.

IT'S NOT A CHILD RESISTANT PACKAGING ANYMORE.

SO WE HAVE SOME VERY STRICT PACKAGING AND MARKETING REGULATIONS IN NEW YORK STATE.

YOU KNOW, WE ARE NOT ALLOWED TO DO THINGS LIKE BILLBOARDS.

WE ARE NOT REALLY SUPPOSED TO BE ADVERTISING ON SOCIAL MEDIA LIKE THERE IS A LOT OF STUFF WE CANNOT DO HERE IN NEW YORK THAT OTHER STATES DO IN TERMS OF MARKETING, ESPECIALLY AROUND MARKETING WHERE CHILDREN CAN SEE IT LIKE TELEVISION AT CERTAIN TIMES OR THE RADIO OR WHATEVER ELSE.

SO NEW YORK HAS TAKEN THAT REALLY, REALLY SERIOUSLY, MORE SERIOUSLY THAN MOST OTHER STATES.

>> BRITNI, HAVE YOU THOUGHT ABOUT WHAT IT WOULD BE LIKE TO HAVE AN OPERATION THAT CAN ONLY SELL TO NEW YORKERS OVER THE AGE OF 21.

>> I THINK IT'S GREAT.

I'M A MOTHER TO A THREE AND FIVE-YEAR-OLD.

I'M A LONG TIME CANNABIS USER BUT I DO BELIEVE THAT AGE REQUIREMENT IS A NECESSITY.

I CAN FOLLOW THE STATE'S LOGIC, YOU KNOW, IF YOU LOOK AT SOME OF THE VAPES, TOBACCO VAPES, THEY'RE VERY BRIGHT, VERY CONFUSING.

CHILDREN PICK THEM UP AND, YOU KNOW WHAT, THEY'RE ATTRACTED TO THEM.

SO I'M NOT SO MUCH CONCERNED WITH THAT.

MY CONCERN WOULD BE FOR PRIVATE LABELING.

US AS POTENTIAL LICENSE HOLDERS AND LICENSE HOLDERS ARE UNABLE TO PRIVATE LABEL OUR OWN BRAND.

AND YOU KNOW, WE FIND THAT TO BE A LITTLE DISCOURAGING.

WHERE WE OPEN UP THESE DISPENSARIES OUR HOPE IS TO CREATE GENERATIONAL WEALTH.

AND IT'S REALLY GOING TO BE THROUGH THAT INTRINSIC VALUE OF OUR BRAND.

SO WE ARE HOPING THAT THE PACKAGING REGULATIONS FOR PRIVATE LABELING, YOU KNOW, CAN BE REVISITED.

>> ALLAN, AS WE MENTIONED AS WE SPEAK RIGHT NOW, THERE ARE FOUR OPENED DISPENSARIES.

IN A FUTURE NEW YORK, WHERE THERE IS THE ABILITY TO OPEN UP SHOPS THROUGHOUT STATE WITH THE CAVEAT THAT SOME COMMUNITIES HAVE OPTED OUT OF HAVING DISPENSARIES, HOW MANY DISPENSARIES COULD WE POTENTIALLY HAVE IN NEW YORK?

WHAT WOULD THE MARKET SUPPORT?

>> WELL, IN OTHER STATES, THE MARKET COULD SUPPORT ABOUT ONE DISPENSARY PER EVERY 100 TO 200,000 PEOPLE.

SO WE ARE TALKING ABOUT A THOUSAND STORES IN THE STATE OF NEW YORK.

AND EVEN THAT, I THINK WOULD BE A LOWER ESTIMATE.

I THINK FOR ALCOHOL THERE IS OVER 10,000 PLACES YOU CAN BUY ALCOHOL RIGHT NOW.

SO I THINK A THOUSAND IS A GOOD BENCHMARK TO SHOOT FOR IN THE NEXT FIVE YEARS.

>> SO NOT NECESSARILY AS PROLIFIC AT LIQUOR STORES?

>> RIGHT.

>> GOTCHA.

AND BRAD I MENTIONED THIS IDEA OF COMMUNITIES OPTING OUT.

WHAT IS THE PROCESS FOR COMMUNITIES THOUGH WHO SAY IN THE FUTURE, LOOK AROUND AND MIGHT FEEL, OKAY THIS DOES LOOK LIKE IT CREATES SOME ECONOMIC OPPORTUNITIES.

WE'VE SEEN THAT THE ISSUE OF MAYBE DRIVING WHILE IMPAIRED ISN'T AS BAD AS WE WERE CONCERNED ABOUT OR WHATEVER CONCERNS THEY MIGHT HAVE HAD PREVIOUSLY AND THEY WANT TO GET INTO THE MARIJUANA SPACE.

THEY WANT TO HAVE A DISPENSARY IN THEIR COMMUNITY.

IS THAT SOMETHING THEY CAN DO OR, IF YOU OPTED OUT PRIOR TO 2022, ARE YOU OUT OF LUCK?

>> , NO FACT, ANYBODY CAN OPT BACK IN IF THEY OPERATED OUT.

IT MADE IT VERY, VERY EASY FOR THEM TO STAY OPTED IN AND BUT TO OPT OUT, YOU HAD TO DO IT BY A CERTAIN TIME AND IF THEY DIDN'T, THEY WERE AUTOMATICALLY IN.

SO THE PEOPLE WHO HAVE OPTED OUT DO HAVE THE OPTION TO GO BACK IN.

I THINK YOU ARE GOING SEE THAT PLAY OUT A LITTLE BIT ON LONG ISLAND.

THEY HAVE ALMOST ALL OF THEM HAVE OPTED OUT.

ALL THE MUNICIPALITIES HAVE OPTED OUT.

>> THE NIMBY CAPITAL.

WORLD.

>> ONLY FOUR MUNICIPALITIES IN LONG ISLAND OPTED IN AND NOW YOU HAVE POTENTIALLY 40 CARD OPPORTUNITIES TO GO INTO THOSE LOCATIONS.

OVER TIME, TO YOUR POINT, IF COMMUNITIES SAY MAYBE WE WERE A LITTLE OVERLY CONCERNED ABOUT THIS, THIS OR THIS AND WE WANT BACK IN, IT IS VERY EASY FOR THEM TO DO THAT AND ALLOW THIS IN BUT IT'S ALSO IMPORTANT TO REMEMBER THAT THEY ONLY OPTED OUT OF RETAIL AND ON SITE CONSUMPTION.

ALL THE OTHER PARTS OF THE CBS INDUSTRY FROM CULTIVATION PROCESSING IS STILL THERE.

THEY CAN STILL OPERATE THERE.

IT'S REALLY JUST THE RETAIL SIDE AND DELIVERY AS WELL.

IF A MUNICIPALITY OPTS OUT OF A RETAIL SIDE BUT THEN THE MUNICIPALITY NEXT DOOR IS OPTED IN, THEY CAN DELIVER.

I MEAN THERE IS NOTHING STOPPING THAT.

AND THERE IS A HUGE FOCUS RETAIL RIGHT NOW.

BUT DELIVERY IS A MAJOR COMPONENT OF ANY I THINK CBS MARKET IN ANY STATE.

>> BECAUSE MARIJUANA USERS ARE LAZY.

I GOT YOU.

I'M SHOCKED ALLAN GOT HERE.

>> THAT'S GOING TO PLAY OUT OVER TIME AS WELL.

>> DID YOU WANT TO ADD ANYTHING?

>> I TOOK AN UBER.

>> YOU NOY WE ARE NOT GOING TO REIMBURSE YOU FOR THAT?

WAIT, WHAT?

[LAUGHTER] I WAS JUST GOING TO SAY BRAD HIT THE NAIL ON THE HEAD.

ALL OF LONG ISLAND CAN OPT OUT BUT IF THERE IS A DELIVERY SERVICE ANYWHERE IN QUEENS, THEY CAN DELIVER TO LONG ISLAND.

YOU CANNOT STOP THAT AND THE UNIQUE PART OF NEW YORK STATE'S DELIVERY LAWS ARE THAT EACH DELIVERY BUSINESS CAN ONLY HAVE 25 EMPLOYEES SO AGAIN, ANOTHER, YOU KNOW, WAY TO NOT HAVE ONE GIANT DELIVERY COMPANY LIKE INSTA CART OR UBER EATS RUNNING THE ENTIRE CBS MARKET, YOU ARE GOING TO HAVE A PROMOTION OF ALL THESE SMALL BUSINESSES WHO HAVE ARE GOING TO HAVE TO LOCATE AROUND THE COMMUNITIES TO, YOU KNOW, SERVICE LONG ISLAND OR SERVICE, YOU KNOW, WHEREVER ELSE THAT MIGHT HAVE OPTED OUT.

>> BRIDNI, ACCORDING TO THE ROCKEFELLER INSTITUTE THAT HAS A TRACKER OF THE MUNICIPALITIES NAT OPTED OUT.

1 MUNICIPALITIES IN MONROE COUNTY HAVE OPTED OUT, NO THE ROCHESTER OBVIOUSLY.

DO YOU VIEW THAT AS A POTENTIAL OPPORTUNITY IF YOU ARE ABLE TO GET A LICENSE FOR ROCHESTER, YOU WILL HAVE PEOPLE FROM THE SUBURBS FLOCKING TO ROCHESTER?

YOU WILL BE ABLE TO MAKE DELIVERIES?

ARE YOU HAPPY WITH THAT TEM PRANT ATTITUDE THAT APPARENTLY SOME MUNICIPALITIES HAVE?

>> I MEAN IT'S KIND OF A DOUBLE EDGED SWORD, RIGHT?

IT NARROWS OUR POOL I WAS GOING TO AGREE WITH BRAD.

WE COMMUNICATE WITH A LOT OF OUR LOCAL MUNICIPALITIES AND A LOT OF THEM ARE KIND OF SITTING ON THE BENCH.

THEY WANT TO SEE WHAT IS GOING TO HAPPEN AT THIS POINT IN THE GAME FOR MYSELF AND FOR ROCHESTER SPECIFICALLY, I DO BELIEVE THAT BEING FIRST TO MARKET THAT, YOU KNOW, NO MATTER WHERE WE ARE, WE WILL BE SUCCESSFUL, YOU KNOW, WE ARE HEAVILY INVOLVED IN OUR COMMUNITY.

I KNOW ROCHESTER WANTS LEGAL CBS SALES.

I KNOW PEOPLE ARE READY TO GO TO WORK.

AND I THINK, YOU KNOW, IT IS REALLY ALL IN HOW YOU LOOK AT IT.

ARE YOU GOING TO MAKE THE BEST OF, YOU KNOW, PLACING YOUR DISPENSARY IF YOU GET CHOSEN AND YOU GET THE FIRST LOCATION IN THE HEART OF ROCHESTER?

I SAY TAKE IT.

EVEN THOUGH MAYBE YOUR DESIRE WAS TO BE IN ONE OF THE SUBURBAN AREAS.

I THINK THAT THIS MARKET TO ALLAN'S POINT IS TO GOING TO GROW EXTO LENGSALLY-- EXPONENTIALLY WELL PASTED 1,000 DISPENSARIES ACROSS THE STATE.

JUST TO BE GRATEFUL TO BE ONE OF THE FIRST TO MARKET, I WOULD TAKE ONE ANYWHERE.

>> ALLAN, DO THE REGIONAL CAPS THAT THE OFFICE OF CANNABIS MANAGEMENT MAKE SENSE.

AS PEOPLE WHO WANT TO OPEN IN A CERTAIN AREA BE ALLOWED TO AND LET CAPITALISM DECIDE WHICH SURVIVE AND HOW MUCH DEMAND THERE IS?

>> THINK THINK RIGHT NOW THE REGIONAL CAPS ARE FINE BECAUSE THERE ARE SO FEW STORES AND IT IS GOING TO TAKE SO MUCH TIME TO GET UP AND RUNNING AND I HAVE A FEELING AS THE INDUSTRY MATURES, THE REGIONAL CAPS WILL GO AWAY AS PEOPLE KNOW WHAT THE MARKET ACTUALLY IS.

I DON'T SEE THAT BEING A HINDERANCE CURRENTLY BECAUSE YOU ONLY HAVE 300 CARD LICENSES AND THEN ON TOP OF THAT, THE LICENSE APPLICATIONS ARE NOT OPEN.

WE HAVE NO REGS NAT ARE FINALIZED, THERE IS NO WAY FOR ANYONE ELSE TO OPEN THE STORE.

AND THERE IS NOT GOING TO BE FOR POTENTIALLY QUITE SOMETIME.

SO YOU KNOW, AS OF 2023 IS CONCERNED, AND PROBABLY 24, THE REGIONAL CAPS ARE NOT GOING TO REALLY MEAN MUCH.

>> AND SPEAKING OF DELIVERY, IS IT POSSIBLE THAT SOME OF THESE DELIVERY OPERATIONS COULD GET UP AND RUNNING PRIOR TO THE ACTUAL BRICK AND MORTAR STORES SO SEE PEOPLE BUYING MARIJUANA THAT WAY FIRST?

>> YEAH, I THINK RIGHT NOW, AS PART OF THE CARD PROGRAM, PEOPLE ARE ALLOWED TO DO DELIVERY FIRST BEFORE THEY OPEN UP RETAIL.

I HEAR THERE IS A FEW OF THEM IN THE WORKS RIGHT NOW.

I HAVEN'T-- NONE OF THEM HAVE LAUNCHED BUT MAYBE SOME MIGHT LAUNCH.

I HAVE A FEELING BY APRIL 20.

>> WHAT IS THAT DAY?

>> THAT IS A CANNABIS HOLIDAY 4-20 I BELIEVE.

AND SO AS A MEMBER OF THE CANNABIS ADVISORY BOARD, DO YOU FEEL STATE REGULATORS ARE TAKING INPUT, LISTENING TO STAKEHOLDERS AND ARE ENGAGED IN WEEM?

>>-- WITH PEOPLE.

>> AS A MEMBER OF THE CANNABIS ADVISORY BOARD WE HAVE ONLY HAD TWO PUBLIC MEETING.

>> REGULATORS,Y THEY LISTENING TO PEOPLE LIKE YOURSELF?

>> WE DON'T GET TO TALK TO THE REGULATORS.

LIKE WHAT YOU HAVE SEEN ON THE TWO MEETINGS IS THE ONLY TIME WE HAVE HAD THOSE CONVERSATIONS AND THOSE ARE VERY LIMITED MEETINGS.

NO OTHER MEETINGS, AS ME AS AN ADVISORY BOARD MEETING, THERE ARE NO OTHER MEETINGS OUTSIDE OF THE PUBLIC ONES.

THEY CANNOT LISTEN TO THAT ADVISE ADVISORY BOARD BECAUSE THERE IS NO WAY TO TALK TO THEM OUTSIDE OF LIKE I SAID, THOSE TWO MEETINGS.

SO I THINK A LOT OF PEOPLE ARE CONFUSED ABOUT HOW THAT ADVISORY BOARD WORKS WITH THE CANNABIS CONTROL BOARD.

THE ADVISELY BOARD IS MORE I THINK THE IDEA WAS TO FIGURE OUT HOW TO REINVEST THE FUNDS THAT WILL BE COLLECTED FROM THE TAX REVENUE BACK INTO COMMUNITIES AROUND THE STATE.

SO RIGHT NOW, THERE IS NOT A REGULATORY ADVICE INDUSTRY ADVICE THINGS THAT WE ARE ABLE TO GIVE SO WE ARE SITTING BY PATIENTLY WAITING FOR THINGS TO HAPPEN THAT WE COULD ACTUALLY GET INVOLVED IN.

>> YOU ARE ON RETAINER.

>> WE ARE ON RETAINER YES.

>> PATIENTLY WAITING COULD BE LIKE THE NAME EVERYONE NEEDS TO STRIKE FOR THIS ENTIRE PROCESS OF THE LAST TWO YEARS.

>> YEAH, IT COULD BE.

>> BRAD, BEFORE WE GO, I REALLY WANT YOU TO PLUG CANNABIS INSIDER.

I TALK ABOUT HOW MUCH I LIKE THIS PRODUCT.

THE PEOPLE WANT TO FOLLOW WHAT YOU ARE DOING, HOW DO THEY DO IT AND YOU KNOW, WHAT IS THE FULL SCOPE OF THE REPORTING THAT YOU'VE GOT GOING ON?

>> OH MAN, SO MAINLY OUR PUBL SCAITION LIVES ON SYRACUSE.COM.

YOU CAN GOOGLE US.

WE ARE ON TWITTER, LINKEDIN AND THE PURPOSE IS TO BRING JOURNAL ITCH TO THE CANNABIS INDUSTRY BECAUSE IT IS NOT AN INDUSTRY THAT HAS HISTORICALLY BEEN WELL REPORTED ON.

: SO THE FOCUS IS ON ACCOUNTABILITY JOURNALISM, HOLDING PEOPLE IN POWER TO ACCOUNT.

AND DOING SOME INVESTIGATIVE REPORTING BUT EXPLAINING THINGS ALONG THE WAY, PEELING BACK THE CURTAIN FOR PEOPLE INSIDE THE INDUSTRY AND NOT.

AND SO WE TRY TO TAILOR OUR REPORTING TO BOTH AUDIENCES AND REALLY JUST TRY AND FIGURE OUT WHAT IS ACTUALLY GOING ON VERSUS WHAT IS BEING SAID PUBLICLY BY REGULATORS.

>> YOU HAVE A NEWSLETTER.

>> A DAILY NEWSLETTER PEOPLE CAN SIGN UP FOR FREE.

WE TRY TO KEEP MOST OF OUR STUFF FOR FREE.

WE HAVE BENEFITS FOR SUBSCRIBERS, CERTAIN STORIES AND DATABASES THAT WE MAKE AVAILABLE.

TWO-THIRDS OF THE STUFF WOULD BE FREE FOR EVERYBODY.

>> BUT THEY SHOULD PROBABLY SUBSCRIBE SO YOU CAN AFFORD YOUR MORTGAGE AND HIRE MORE PEOPLE, RIGHT?

>> I DO HAVE KIDS SO PLEASE SUBSCRIBE.

>> AND BUY FOOD.

>> GOTCHA.

UNFORTUNATELY THAT'S ALL THE TIME WOO WE HAVE FOR TODAY'S CONVERSATION.

MY THANKS TO OUR GUESTS, NEW YORK CANNABIS INSIDER EDITOR AND PUBLISHER BRAD RACINO, CANNABIS ASSOCIATION OF NEW YORK PRESIDENT ALLAN GANDELMAN AND FLOWER CITY DISPENSARY CO-FOUNDER AND PRESIDENT BRITNI TANTALO.

IF YOU'D LIKE TO REVISIT THIS EPISODE - OR DIG INTO THE CONNECT NEW YORK ARCHIVES - VISIT WCNY.ORG/COLLECT NEW YORK.

ON BEHALF OF THE ENTIRE TEAM AT WCNY - I'M DAVID LOMBARDO - THANKS FOR WATCHING.