Florida’s Division of Well being introduced plans to award 22 new medical hashish licenses, a choice that might reshape the state’s hashish trade however is more likely to face authorized challenges.
The announcement, posted Tuesday on the company’s web site (through Tallahassee Democrat), comes greater than 18 months after purposes closed in April 2023.
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The brand new licenses are a results of a 2017 legislation mandating a rise in licenses because the variety of medical marijuana sufferers grows, which now surpasses 880,000. This course of has attracted important consideration because it marks the primary probability for brand new companies to enter Florida’s medical hashish market for the reason that legislation’s enactment.
The division’s letters of intent sign approval for 22 companies out of the 74 that utilized final yr, every paying a $143,000 utility charge. The analysis course of, carried out by consulting agency KPMG, price the state practically $1.79 million. Nevertheless, the letters don’t grant instant working licenses, leaving room for authorized motion from candidates who weren’t chosen.
Anticipated Authorized Battles
Authorized disputes are anticipated to delay the method, probably for years, given the aggressive nature of Florida’s hashish market.
“Traditionally, when these types of issues occur, litigation does happen. You could have 22 individuals which can be very completely satisfied and 50 individuals that aren’t very completely satisfied in any respect,” Division of Well being spokesperson Jae Williams mentioned in dialogue with The Information Service of Florida.
He additionally famous the substantial investments made by candidates and the division’s accountability to make sure that authorised operators meet excessive requirements for high quality.
Candidates have referred to as for legislative intervention to forestall extended delays. Legal professional Paula Savchenko, who labored with Florida Sports activities Consultants, Inc.—working as Belushi’s Farm Florida—mentioned the method may stall for months and even years with out motion.
“If we do not have a legislative repair, we will see these licenses held up for anyplace between six months to 2 years,” Savchenko mentioned.
Trade Shifts And New Gamers
Notable candidates receiving letters embrace Florida Sports activities Consultants, Inc., led by actor Jim Belushi, who additionally operates a hashish farm in Oregon. Different authorised companies embrace STIIIZY Florida, LLC, A Good Resolution, LLC and Idea Wellness of Florida, LLC. The additions deliver Florida nearer to doubling its licensed operators, which presently stand at 25, managing over 690 dispensaries statewide.
Quincy-based Trulieve Hashish Corp. TCNNF, the state’s largest medical marijuana operator, welcomed the growth.
“We’re happy that the licenses are lastly issued, bringing the variety of licensees to 47. We proceed to stay up for working with the governor and legislature to broaden entry to secure, lab-tested hashish for Floridians,” the corporate mentioned in an announcement.
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Broader Context
The choice to award licenses coincides with the defeat of a proposed constitutional modification that sought to legalize leisure marijuana.
The measure acquired 56% voter approval however fell wanting the 60% threshold wanted for passage. Governor Ron DeSantis performed a major function in opposing the modification, which had been closely supported by trade leaders, together with Trulieve.
“Nearly all of individuals within the trade would relatively have had leisure move, however all of us are fairly assured that it is going to move someday within the subsequent two to 4 years,” Savchenko mentioned.
For now, Florida’s medical marijuana trade is bracing for the following section, with new gamers poised to enter the market and potential authorized hurdles nonetheless forward.
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