Removing the two-driver rule to make social equity businesses more profitable has been described as low-hanging fruit.
The Cannabis Control Commission approved on Friday a draft regulation that would remove the widely criticized two-driver rule in a bid to make it easier for cannabis delivery operators to make a profit.
“This is a long time in the making,” said Commissioner Kimberly Roy. “I know there are folks in the room who have patiently been waiting and now they are here with us today. This just moves the ball forward to get to where we need to be – removing some unnecessary barriers that don’t need to be there.”
The changes probably won’t take effect until October or November, after a public comment period and the release of the final regulations.
The commission voted back in December 2023 to remove the two-driver rule, a requirement that every delivery be carried out by two drivers for security purposes. The commissioners were responding to calls from delivery operators who said that the two-rule doubled their cost for each delivery and prevented them from turning a profit.
Many delivery companies have complained about how long the commission has taken to change the rule.
“It’s about damn time to get these changes fixed that were voted on in December,” said Devin Alexander, the CEO and co-founder of cannabis delivery company Rolling Releaf, in a phone interview. “[I feel] relief because the excitement [about these changes] was back in December and the excitement wears off after several months. You just want to get it done.”
In addition to allowing a single driver to complete cannabis deliveries, the commission increased the time window in which deliveries can take place to 7 a.m. to 11 p.m. Currently, deliveries are only allowed between 8 a.m. and 9 p.m.
Alexander praised the commission for making this change. “I did not expect them to allow us to stay open until 11,” said Alexander. “That’s huge. I’m very grateful for that.
In the new draft regulations, commissioners also decreased the amount of cannabis that delivery vehicles can have if there is only one agent in the car. The new regulations would allow delivery vehicles with one driver to carry up to $5,000 worth of cannabis and cannabis products. The limit remains $10,000 for any deliveries conducted by two drivers.
“The limit is not much of a factor,” said Alexander. “I can guarantee not a single delivery company in the state is carrying $10,000 worth of product.”
Currently, only social equity businesses are allowed to have a delivery license and the proposed changes aim to make their struggling businesses more profitable. The exclusivity period for social equity businesses is set to expire April 1, but the commission will make a decision whether to extend it in the winter of 2024 after receiving feedback from a working group expected to launch at the end of this month.
Removing the two-driver rule to make social equity businesses more profitable has been described by many in the cannabis space as low-hanging fruit.
“Low hanging fruit shouldn’t take this long, so I think it was mischaracterized,” said Alexander. “Everything takes time. Especially when you’re changing regulations. It’s unfortunate it took so long, but I’m just grateful it’s actually happening.”
Commissioner Nurys Camargo stressed the commission’s attention to detail with the new regulations. “It’s another historical day at the commission and for the commissioners,” said Camargo. “Policy takes time, especially if you want to do it right and all of us have been so mindful about every single word.”
She engaged in some playful banter in her opening comments with Alexander and other delivery operators.
“The stuff isn’t a check in the box,” said Camargo. “Especially for a license type like delivery as it is one of our equity licenses. I know there are folks in the audience and I’m getting a good look and the ‘Imma bite you’ look. Imma bite you back– it takes time.”
This article was republished from CommonWealth Beacon. You can read the original version here.
