Connecticut’s journey towards legal recreational cannabis has raised concerns about the well-being of medical marijuana patients. Erin Gorman Kirk, the state’s cannabis ombudsman, voiced her apprehensions at the recent Benzinga Cannabis Capital Conference, emphasizing the need to prioritize patients as the market evolves.
Kirk pointed out that many patients are switching to the adult-use market due to the limitations they face in the medical program. She explained that the transition to recreational cannabis has resulted in a shortage of products specifically tailored for medical needs, creating a gap in access for patients.
“There are very few products for patients right now,” Kirk said. “We had a very good medical system, starting in 2012 and you could get all kinds of things. You could get tea from Bigelow Tea, which is a very conservative company, but they made amazing tea that our veterans loved.”
Kirk highlighted three primary concerns: inconsistent medication availability, inflated prices, and questionable quality. She expressed her determination to attract new producers to the medical market, while emphasizing the need to avoid repeating the pitfalls seen in other states like Oklahoma, where lottery-based licensing systems have led to instability.
Matt Hawkins, founder and managing partner of Entourage Effect Capital, a venture capital firm focused on the cannabis industry, shared his observations on the national landscape. He noted that states transitioning to recreational cannabis often witness a decline in the quality and accessibility of medical marijuana programs. This, Hawkins explained, stems from a business-driven shift in priorities, as companies prioritize the potentially more profitable recreational market.
Hawkins emphasized the importance of thoughtful licensing models, highlighting three common approaches: lottery-based, merit-based, and hybrid systems. While lottery systems might appear equitable, they can lead to legal challenges and uncertainty. Merit-based systems, on the other hand, offer greater predictability and appeal to investors due to clear investment pathways. He identified Missouri, Ohio, and Maryland as states with promising investment opportunities.
Kirk shed light on Connecticut’s unique licensing approach, which prioritizes social equity by requiring cultivation license applicants to meet stringent criteria, including demonstrating low income and previous cannabis-related convictions. However, this system has presented challenges, as smaller operators often rely on financial backing from larger firms, sometimes resulting in exploitative deals with high interest rates. This undermines the original goal of social equity, as Kirk acknowledged.
The conference panel, titled “The Intricacies of the Licensing Process: Its Impact on Consumers and Business,” highlighted the complexities of navigating the evolving cannabis landscape. Both Kirk and Hawkins emphasized the need for a balanced approach that prioritizes patient needs while fostering a robust and sustainable recreational cannabis market.
