The emergency rule published on Friday adds 22 new licenses to the 22 that already exist. Applications will be accepted by the department from April 24 through April 28. The long-awaited announcement that 22 medical marijuana license applications would be accepted by Florida health officials was made by Gov. Ron DeSantis’ office on Friday.
Since the number of licenses in the state will double due to an emergency regulation, there has been a lot of excitement in the cannabis sector. Florida voters approved a constitutional amendment in 2012 broadly permitting medical marijuana, and the state legislature authorized a framework for the sector in 2017.
More than five years in the making, Florida’s medical cannabis program has reached an important milestone. Ex-director of Florida’s Office of Medical Marijuana Use Courtney Coppola told The News Service of Florida that the new licenses were “a significant step in moving the program ahead for Florida’s patients and future licensees.”
New license applications will be accepted in “batching cycles,” a system established in December by the Florida Department of Health. It was announced on Friday that in addition to the 22 businesses that are already licensed, another 22 will be granted licenses under the emergency regulation.
Applications will be accepted by the department from April 24 through April 28. This application period will provide new entrants to the state’s cannabis market with their first significant opportunity to compete for licenses since the legislation was passed in 2017.
The first wave of permits was issued in accordance with a law from 2014 that allowed medical marijuana for a certain number of patients but did not allow for any of the psychoactive effects of marijuana. Investors and marijuana business owners have long considered Florida a top location for their operations.
The licensing procedure has attracted more attention because of a planned constitutional amendment that would legalize marijuana for recreational use. Trulieve, the largest medical-marijuana business in the state, has advocated for the proposed amendment, which might appear on the ballot in 2024.
Former general counsel for the Florida Department of Health and attorney Louise St. Laurent said to The News Service of Florida that prospective operators “are delighted” about Friday’s announcement. St. Laurent said on Friday that “there has been no shortage of enterprises waiting and watching the department for these guidelines since probably at least 2017” in order to compete for the licenses.
A new law in 2017 mandated that the Department of Health issue additional licenses as the number of eligible patients increased. There are more than 778,000 patients, so the state should have awarded at least 22 additional licenses. After Governor DeSantis assumed office in 2019, the application process stalled.
A Black farmer with established commercial ties to the state was also mandated to be issued a license by health officials under the 2017 law. In September, the health department declared its intention to grant the license to a man in Suwannee County; but, legal and administrative hurdles have delayed the license’s issuance.
Florida’s medical marijuana industry is worth an estimated $1 billion per year, but unless they break into the recreational market, most pot businesses will see small profit margins at most. According to Next Titan Capital President and national cannabis-sector consultant Jade Green, Florida’s over 22 million residents and thriving tourism economy “provide a great opportunity” for investors.
If you can make it in Florida till rec (recreational marijuana) arrives, then you will have a big advantage in what will be one of the major cannabis economies not just in the U.S. but in the globe, Green, who is located in Miami, told the News Service.
This week, proponents of the proposed constitutional amendment submitted more than enough signatures to force a review of the legislation by the Florida Supreme Court, clearing a crucial first obstacle on the road to ratification.
In 2021, the Supreme Court ruled against two constitutional proposals that would have legalized recreational marijuana usage. Green asserts that potential license applicants need not be deterred by the conservative court’s treatment of the 2024 proposal.
In comparison to more established and competitive marketplaces, Florida’s is an intriguing prospect. For one thing, “whatever happens in 2024, eventually adult-use (recreational) cannabis will arrive in Florida,” she explained. The value of operators’ licenses, which have been traded for $30 million to $85 million over the past few years, is expected to decrease as the state’s medical marijuana sector is expected to double in size.
Inflation, workforce shortages, sales of uncontrolled euphoria-inducing hemp products, and the black market have all contributed to a decline in the cannabis business on a nationwide scale. Furthermore, “vertical integration,” an expensive technique, is mandated in Florida, mandating that operators handle all parts of the business, including cultivation, processing, and sales.
It is estimated by professionals in the field that it will cost around $30 million to establish the necessary facilities for the cultivation and processing of marijuana and its derivatives. In addition to the cost of staff compensation, maintaining a retail store can add another $3 million to $4 million each year.
Florida is the second largest medical marijuana market in the United States, and experts like Green believe that serious investors won’t pass up the opportunity to compete there. Because adult use hasn’t arrived in Florida yet, the state’s population growth rate continues to skyrocket like a hockey stick.
No significant saturation has occurred. My pace of development will skyrocket if I can just get here and hide out until I reach adulthood. In the event that I am unable to perform, I can sell my license… so I should be able to repay my investment and make a nice return,” Green explained.
