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Senate hearing spotlights financing squeeze behind bid to let New Hampshire medical cannabis centers convert to for‑profit
Summary
Supporters of SB 4 79 told a Senate committee that the state’s requirement that alternative treatment centers operate as nonprofits prevents them from accessing lower‑cost capital, raising operating costs that are passed to patients; opponents urged financial audits and warned about federal scheduling uncertainty.
Senator Dan Innes introduced SB 4 79, saying the bill would let New Hampshire’s licensed alternative treatment centers (ATCs) convert from nonprofit to for‑profit corporate structures to access lower‑cost capital and reduce patient prices. “The nonprofit structure really has limited ATC’s ability to operate optimally,” Innes told the Judiciary Committee.
Keenan Blum, president and CEO of Grama Relief Cannabis (formerly Prime ATC / Granite Leaf Cannabis), testified the nonprofit requirement prevents ATCs from using common financing tools. “We have never been able to secure significant financing at less than 15% interest,” Blum said, adding that ATCs do not qualify for donations, grants, or equity and therefore rely on unsecured, high‑interest loans.
Blum told the committee those higher financing costs are embedded in operating budgets and ultimately passed to patients, who often pay out of pocket because therapeutic cannabis is not covered by insurance. He said conversion to a for‑profit structure would not change regulatory oversight: “SB 4 79 does not reduce oversight, it does not loosen regulations, or change the mission of the program in any way,” he said.
Opponents pressed for more financial transparency before changing the law. Sue Hamola of Smart Approaches to Marijuana — New Hampshire said the program was created as a compassionate, nonprofit‑based program and urged the committee to audit ATC financials before approving conversions. “Before the senate makes any decisions, it should have the ability to look in the books of the ATCs,” Hamola said, adding concern that for‑profit structures would prioritize investors over patients.
Nathaniel Gurian, CEO of FinCan, described cannabis lending as available but challenging and high risk; he said the nonprofit constraints add another layer that can push interest rates higher. Committee members asked whether federal rescheduling or neighboring states’ markets would make bank lending more accessible; witnesses said some lending exists but financing remains more expensive than for comparable businesses.
The committee closed the hearing on SB 4 79 without taking a vote. The record includes multiple requests for additional financial information and program audits from members who opposed restructuring without more data.
