As Connecticut transitions from a medical marijuana program to a recreational market, concerns are rising about the accessibility and quality of medication for patients. Erin Gorman Kirk, Connecticut’s cannabis ombudsman, highlighted this issue at Benzinga’s Cannabis Capital Conference, expressing worry that patients are being left behind in the rush to serve adult-use consumers.
Kirk pointed to the shortage of original producers and seeds, resulting in limited product options for medical patients. “We had a very good medical system, starting in 2012, where you could get all kinds of things, even tea from Bigelow Tea, which is a very conservative company, but they made amazing tea that our veterans loved.” Now, the top complaints Kirk receives are inconsistent medication, high prices, and poor quality.
This scenario is not unique to Connecticut. Matt Hawkins, founder and managing partner of Entourage Effect Capital, a venture capital firm specializing in cannabis, observed that across the nation, states transitioning to recreational use often see their medical programs struggle. “It’s a business decision,” Hawkins said, “but it doesn’t make it right.” He expressed curiosity about the impact of Florida’s potential legalization of recreational use, predicting a similar outcome.
Kirk, an advocate for patients, has approached large cannabis companies like Green Thumb Industries and Verano Holdings, urging them to prioritize patient needs. However, the response has been discouraging: “They are not going to do it.” To address this issue, Kirk proposed legislation aimed at ensuring the availability of consistent products for both medical and adult-use consumers.
Hawkins delved into the complexities of different licensing models, explaining the three main types: lottery-based, merit-based, and hybrid. While lotteries may seem impartial, they can lead to legal challenges, as witnessed in New York. Merit-based models, on the other hand, offer better predictability and are more attractive to investors due to clearer investment pathways. Hawkins identified Missouri, Ohio, and Maryland as states with promising investment opportunities.
Connecticut’s licensing model, which emphasizes social equity criteria for cultivation licenses, has inadvertently created vulnerabilities for smaller operators. The requirement to demonstrate low income and previous cannabis-related offenses often leads to partnerships with larger capital firms, sometimes resulting in predatory deals with exorbitant interest rates. This situation undermines the intended goal of fostering social equity.
Kirk and Hawkins’ participation in the panel, “The Intricacies of the Licensing Process: Its Impact on Consumers and Business,” underscores the complex challenges faced by the cannabis industry as it navigates the transition from medical to recreational use. The need for a balance between patient needs, business interests, and social equity is crucial for the long-term success of the industry.
