James Pepper urges cautious rollout of cannabis delivery pilot, cites diversion and staffing limits

James Pepper, chair of the Cannabis Control Board, told the Health & Welfare committee that a bill authorizing cannabis delivery should be rolled out slowly and with strict oversight because shifting sales from fixed retail locations to delivery expands points of sale and increases the board’s enforcement risks.

Pepper said the bill gives the board broad authority to regulate delivery and that the authorization is designed as a limited pilot. “The board shall not grant more than 15 delivery permits annually,” he told the committee, describing the proposal as a two‑year pilot that could amount to 30 permits over the pilot period if fully issued.

The bill would take effect July 1, Pepper said, but he and agency staff told lawmakers the board must still develop application forms, procedures and public‑notice materials before any permits can be issued. He said those administrative steps can move faster than formal rulemaking but still require staff time and oversight.

Why it matters: The committee must weigh public‑safety and public‑health concerns — including diversion and tax avoidance — against industry requests for delivery access. Pepper said delivery changes the point‑of‑sale environment and therefore increases enforcement and public‑safety work for the board.

On enforcement and intoxication, Senator Benson asked how sellers or delivery personnel would determine whether a customer is “intoxicated” in the absence of a cannabis equivalent to an alcohol breathalyzer. Pepper said the statute contemplates mandatory training and that enforcement would rely on visual cues and trained judgment rather than a chemical test: “It’s really just visible cues…there are trainings to make sure that people aren’t selling to people on their own.”

Pepper emphasized the pilot nature of the authorization and repeatedly cautioned the committee that staffing and oversight capacity are limited: the board may not immediately issue the maximum number of permits and intends to phase in delivery permits to see how the system works in practice.

The committee also discussed prevention funding. Members said they will monitor how excise‑tax prevention funds are used alongside the rollout; Pepper said the board would consult publicly and seek workable procedures that address community concerns as well as industry operations.

Committee process and next steps: A 40‑page amendment to the bill was noted as having been circulated to members; the committee reported no recommended changes at this meeting and said the measure will be revisited on the floor the following morning. The chair also said the committee would consider a proposal by Senator Paul Vidart.

The hearing provided detail on the board’s planned approach — a phased, limited pilot that relies on training and administrative checks — but did not include any formal votes or adoption of procedures. The board and staff said they will begin work on application materials and public notice once the bill is enacted and signed into law.