Discussion on Competitive Cannabis Licensing at the State Level with Jay Czarkowski, Founding Partner of Canna Advisors.
Jay was interviewed in an article he was featured in from Boulder Weekly. Here's a portion that stands out to me that I would like to focus on.
Some cautious states are choosing to only legalize medicinally, while their neighbors leap at the opportunity to go full rec. Some states allow dispensaries to sell cannabis they grow themselves, while others require totally separate licenses for cultivation and dispensing. Some states, like California, have created as many as 20 different cannabis business-license classifications (like retail, distribution, cultivation, manufacturing, medical use, adult use, testing, etc.), while other states, like Alaska, offer just a handful.
One of the most significant policy distinctions between states with legal cannabis is whether or not they choose to restrict the number of cannabis licenses issued. If they do, that makes it incredibly competitive for hopeful business-owners to obtain a license and break into the industry. You also said it also dramatically affects the shape and nature of a state’s legal cannabis industry.
When states limit the number of cannabis licenses, it can often box out smaller businesses and entrepreneurs in favor of applicants that have more resources. In Connecticut, for example, the state government elected to issue just four cultivation licenses for the entire state when it legalized cannabis. It was the first state to have a truly merit-based application process, you explained — and it was extremely competitive.
Boulder Weekly also explained that you the unlimited license model is the healthiest, strongest approach to legalization and that the “bread and butter” of what Canna Advisors is doing depends on states doing exactly the opposite. You said “The majority of the work that we do as consultants is actually competitive licensing,”
Most small businesses and entrepreneurs cannot compete on paper with established, well-resourced, firmly-backed big businesses or wealthy investors applying for the same licenses. And it really does come down to looking good on paper
Jay Czarkowski is an influential cannabis entrepreneur, investor, and advocate. A well-connected and respected industry insider, Jay and his team have helped build cannabis businesses in 30 states and internationally. A foremost authority on real estate development and cultivation design, Jay has held a commercial general contractor license since 2002. Known for applying proven business tactics to unchartered territory, Jay has created a diverse vendor network at Canna Advisors with high-profile partners and serves on the board of multiple cannabis businesses.
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