Hartford Business Journal

www.HartfordBusiness.com April 3, 2017 • Hartford Business Journal 3 CT marijuana entrepreneurs, employers weigh legalization impact By Matt Pilon mpilon@HartfordBusiness.com E ven if it doesn't happen this year, legal rec- reational marijuana will likely be coming to Connecticut in the not-so-distant future. "With recreational, I do think it's inevi- table that at some point the state will have to figure out what sort of regulatory model we want, because it's going to be all around us," said Jonathan Harris, commissioner of the state Department of Consumer Protection, which oversees Connecticut's 19-month-old medical marijuana program. Harris was alluding to the fact that other New England states, including Massachusetts, have already legalized recreational pot use, put- ting pressure on Connecticut to do the same. If, or when, that happens there will be a lot at stake for the state's fledgling medical marijuana industry as well as Connecticut employers. Several medical marijuana dispensary owners say that if legalization happens, whether under a bill currently being con- sidered by the General Assembly or in the future, the increased demand for the drug could create new business opportunities. But there are also concerns about federal policy under President Donald Trump, as well as uncertainty over how much competition might flood the market. Meantime, Connecticut employers would likely see another layer of complexity added to existing rules for how they treat employees who are authorized to possess and use medi- cal marijuana, attorneys say. There are also concerns about increased drug use shrink- ing the pool of available labor, particularly in industries like construction that test before hiring and often during the course of a job. Connecticut Senate Bill 11, currently before the Judiciary Committee, could be the furthest the state has ever come in a discus- sion about marijuana legalization. One estimate says recreational pot could raise $237 million in tax revenue for the state in the first 30 months. That won't solve the state's pro- jected two-year, $3 billion budget defi- cit, but it's far from chump change. How- ever, Gov. Dannel P. Malloy didn't favor the bill coming into this legislative ses- sion and has been opposed to legal- ization in the past, though he hasn't spe- cifically promised to veto the proposal if it makes it to his desk. Some argue the legalization train has already left the station since Connecticut is surrounded by states moving forward with their own efforts. M a s s a c hu s e t t s is expected to start licensing recreational marijuana dispen- saries next year. Maine has also approved recreational marijuana while Rhode Island, New York and New Jersey are considering legalization bills. Dispensaries weigh in Many have testified for and against legal- ization, but the state's licensed medical marijuana cultivators and sellers have been noticeably absent from the discussion. Kris Krane, managing partner of Massa- chusetts-based 4Front Advisors — which helps marijuana businesses with licensing and compliance and also holds several licens- es in the Bay State through a related business — said that's not surprising. Cultivators and retailers may worry that openly advocating for legalization — some- thing Krane believes most medical marijuana businesses favor — could upset carefully built relationships with towns that house them. In addition, they may worry that voic- ing their support might rub state regulators the wrong way or create headaches during annual relicensing processes. "This is a risky enough business as it is, so why add another layer of risk there?" Krane said. Not all subscribe to that strategy. Reached by the Hartford Business Journal, Laurie Zrenda, part owner and dispensary manager at Thames Valley Alternative Relief in Uncasville, said she's open to the idea of expanding her medical marijuana operations into the adult-use, recre- ational market. "We've talked about it and I think we would certainly look into it," said Zrenda, a pharmacist, adding she wouldn't want to abandon the medi- cal side of the busi- ness. "It's an exten- sion of what we're already doing." Legalization could bring additional risks though. Since Trump's election, the U.S. Department of Justice has indicated it may not be as friendly to state-sanctioned marijuana sales as Trump's predecessor Barack Obama. "[Legalization] could bring more scru- tiny from the federal government," Zrenda said. "Maybe in a way, it'd be better if we stayed medical." Zrenda said increased competition could also be a concern for her dispensary. Andrew Glassman, an attorney at Pull- man & Comley who represents one of the state's four cultivation facilities, said he believes competition would ramp up, if Continued DESIGN/BUILD SOLUTIONS…ONE SOURCE The company that builds and installs the critical systems in virtually every type of facility is the same company you can rely on to maintain them. For over 50 years, our clients have trusted us to manage projects from concept to completion. We are experts in: Design/Build Pre-Construction Services LEED Capabilities 860.871.1111 Toll Free: 800.741.6367 nemsi.com License #'s: E1-104939 • S1-302974 • P1-203519 • F1-10498 • SM1-192 • MC-1134 MECHANICAL • ELECTRICAL • PLUMBING • SHEET METAL • BUILDING AUTOMATION • FACILITIES SERVICES Connecticut is vying to become the ninth state to legalize recreational pot use. The medicinal marijuana products seen here are sold by Watertown pot cultivator Theraplant. P H O T O | C O N T R I B U T E D G R A P H I C | C N N

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