The chances were unlikely that recreational cannabis would be legalized in New Hampshire this year, particularly after Governor Sununu vowed to veto such legislation. Nevertheless, the House passed HB 481, which legalized recreational cannabis in April. The Senate, however, recognizing the lack of votes to overcome the governor’s promised veto, voted to keep it in Committee over the summer.
The House Health Committee also decided to retain two bills (HB 366 and HB 461), which would have added qualifying medical conditions for therapeutic cannabis. It will take up the retained bills in the fall.
Meanwhile, the Senate killed HB 174, which would have added a potential fifth alternative treatment center (ATC) license. There are currently four licenses (or certificates) to operate ATCs in New Hampshire. These four certificates correspond to four geographic areas set by the Department of Health and Human Services (DHHS). Each licensee may only operate within its prescribed geographic area. HB 174 would have allowed DHHS to begin taking applications for a fifth license for an ATC to be located in Hillsborough or Merrimack County. Currently, there is only a single ATC in Hillsborough County and no ATC in Merrimack and Rockingham Counties (the second and third largest counties by population). The defeat of this bill is a blow to potential future entrants to the New Hampshire market.
Another potential blow (or opportunity) to potential future entrants to the New Hampshire market is SB 145, which changes the law with respect to the corporate form of ATCs. Under current law, an ATC must operate as a not-for-profit entity. SB 145 would amend the law to allow ATCs to be a “domestic business corporation organized under RSA 293-A” or a “domestic limited liability company organized under RSA 304-C.” The likely initial result of this change will be a sale or reorganization of the current ATCs. But it could open up the market to future acquisitions by for-profit entities.
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