Public Hearing on Legalization Amendment March 26

The House Finance Committee has scheduled a public hearing for Tuesday, March 26, beginning at 11am. The purpose will be to consider an amendment to HB 1633 that was proposed by Sen. Daryl Abbas and introduced on his behalf by Rep. Dan McGuire.

If adopted, the senator’s amendment would replace HB 1633 with language very similar to what was considered by the study commission last fall. You can find a summary of the current bill here, and the amendment text is available here.

Unfortunately, unlike HB 1633, the amendment does not create a path forward for the Therapeutic Cannabis Program (TCP) or the Alternative Treatment Centers (ATCs) who serve N.H. patients. Instead, it would put the future of the program into jeopardy.

Here are a few key differences between HB 1633 and the proposed amendment:

Patients Exempt from Fees (a.k.a. Taxes)

Sales of therapeutic cannabis are not subjected to taxation in New Hampshire or in most other states with medical cannabis programs. Instead of creating a “tax,” HB 1633 would create a “fee” that would be administered similarly to a tax. Both HB 1633 and the amendment would allow patients to buy therapeutic cannabis at adult-use retail stores, but there is a key difference: the amendment would not exempt patients from the fee.

• HB 1633 would exempt sales to patients from the 10% “agency fee.”
• The proposed amendment would not exempt sales to patients from the proposed 12.5% “franchise fee.”

Alignment/Integration of the TCP

HB 1633 creates a path for the TCP to become aligned and at least partially integrated with the adult-use program. This makes sense because we know that N.H. isn’t starting from scratch with regulated cannabis. Instead of ignoring the TCP, we should learn from our experiences and build on them to create a successful adult-use program.

Additionally, if all retail stores will be able to sell therapeutic cannabis to patients, there will obviously need to be some integration between the two programs.

• HB 1633 would create a path forward for the TCP by requiring that the Department of Health and Human Services and the Liquor Commission develop a plan and propose it to the legislature later this year.
• The proposed amendment does not attempt to align or integrate the TCP in any way. Instead, it would create a new system of franchise retail stores and put them into direct competition with the TCP.

Increased Penalties for Public Smoking or Vaping

Currently, smoking or vaporizing cannabis in public is a violation-level offense punishable by a fine of up to $100. Both HB 1633 and the proposed amendment would increase the penalty for second and subsequent offenses, but the amendment would go farther than the bill. Registered patients would not be exempted from these penalties.

• HB 1633 would increase the fine for a second offense to “not more than $500,” and it would turn third and subsequent offenses into a criminal misdemeanor.
• The proposed amendment would go farther in increasing penalties, turning second offenses into criminal misdemeanors.

The Future of ATCs

After adult-use legalization passes in a state, the number of registered patients usually declines substantially. For example, it has become clear in recent months that Vermont’s medical cannabis program is suffering. Last month, Vermont’s head cannabis regulator told legislators “the program is just in a rapid decline” and warned that medical-only dispensaries may be forced to close unless changes are made.

Adult-use legalization should present an opportunity to expand and improve access for patients. Unfortunately, some legislators do not believe in therapeutic cannabis, and they do not seem to care about preserving the TCP. If ATCs are blocked from participating in the adult-use program, they may not be able to survive long-term and continue serving patients.

• HB 1633 does not guarantee ATCs a retail license, but it at least establishes that experience operating in New Hampshire will be considered in the licensing process.
• The proposed amendment does not include any language regarding the licensing process for ATCs.

How Can You Help?

If you have strong feelings about any of the provisions in the proposed amendment, please either attend the public hearing or submit comments electronically. Any public testimony or written comments should focus on the details of the amendment.

Legislators especially need to hear from patients that the TCP is important and needs to be preserved. Again, N.H. should view legalization as an opportunity to expand and improve access for patients, not as an excuse to diminish the TCP.

If you’d like to testify at the public hearing, please arrive before 11am. If you fill out a pink card in the committee room, the chairman will call you to testify. Testimony should be as concise as possible, limited to no more than 2 or 3 minutes.

If you can’t be there in person, please share your thoughts with the committee via the House’s remote testimony portal. Here are some simple instructions:

1. Enter your name and contact information.
2. Select the hearing date (March 26).
3. Select the bill and the committee (House Finance, HB 1633), and select “I oppose the bill.” Then check the box that says “testimony is for non-germane amendment.” (The hearing is on the amendment, not the bill itself.)
4. Either upload your written testimony or type your brief comments into the text box. It may be helpful to mention that you support legalization but disagree with the details of this amendment.
5. Submit the web form.

The House has already scheduled a work session on HB 1633 for Wednesday, March 27, so we do not expect that the committee will take action at the public hearing on Tuesday.

Thank you for your interest in the future of New Hampshire cannabis policiies!