Weeks after Governor Ron DeSantis successfully opposed a proposal to legalize recreational marijuana in Florida, state health officials revealed plans to grant medical-marijuana licenses to 22 applicants out of a large pool who competed for the licenses over a year ago.
This announcement was made on the Department of Health’s website on Tuesday and is expected to ignite protracted legal disputes from applicants who were not selected, as they seek entry into the medical cannabis sector.
The Department of Health published a list of 22 applicants who received letters of intent to approve their medical marijuana licenses, more than 18 months after the application window closed in April 2023.
However, these letters are not confirmation that the applicants will receive their licenses immediately. Some unsuccessful applicants are likely to challenge the agency’s decisions, potentially leading to further delays. Out of 74 applications submitted—each costing $143,000 to file—one applicant withdrew, and a consulting firm, KPMG, was paid nearly $1.79 million to evaluate the applications based on various criteria.
The letters were issued three weeks after a proposed constitutional amendment to permit recreational marijuana use failed to achieve the required 60 percent approval, garnering only about 56 percent support from Florida voters on the November 5 ballot as Amendment 3. Governor DeSantis played a significant role in opposing the measure and ensuring it did not meet the threshold for passage.
Among the approved applicants is Florida Sports Consultants, Inc., which operates as Belushi’s Farm Florida and includes actor Jim Belushi, who also runs a cannabis farm in Oregon.
Other successful applicants include A Good Decision, LLC; Alamanda Farms, LLC; East Coast Packers, LLC; FG Operating, LLC; Gates Housing Group, LLC; Global Investment Group, Inc. d/b/a Infinite Wellness; Green Point Research, LLC; Healing Greene FL, LLC; KCOF, LLC d/b/a KLUTCH Cannabis; King Palms, Inc.; O’Donnell Landscapes, Inc.; Pioneer Growers of Florida, Inc.; Pure Beauty Farms, Inc.; RAAB, LLC d/b/a Canna Direct; Star Buds Florida, LLC; Statewide Property Holdings FL, LLC; STIIIZY Florida, LLC; Sunfest Herbs, LLC; The Flower Shop FL, LLC; Theory Wellness of Florida, LLC; and Wachovia Holdings, LLC d/b/a Greenlight.
The new licenses are mandated by a 2017 law intended to increase the number of licenses in line with the rising count of eligible patients, which currently exceeds 880,000.
Last year marked the first major opportunity for new entrants into the medical cannabis market since the 2017 legislation was enacted, with previous licenses issued under a 2014 law that limited access to non-euphoric cannabis for a select group of patients. Presently, the state hosts 25 licensed operators managing over 690 dispensaries statewide.
The recent letters are likely to spur legal challenges that could delay the final licensing process for many months, or even years.
“Historically, when these situations arise, litigation tends to follow. We have 22 satisfied applicants and about 50 who are not, which makes this a highly competitive environment,” Department of Health spokesperson Jae Williams stated to The News Service of Florida on Wednesday.
Williams emphasized that the health department and its Office of Medical Marijuana Use are committed to ensuring that the top-scoring applicants are capable of delivering high-quality products to patients. He noted that the application process requires substantial investment in terms of money, time, and resources, thus making litigation a likely outcome.
Potential licensees hope that Florida legislators will expedite the finalization of the licenses, a step they have taken in the past.
“Historically, the Legislature often intervenes in these matters,” said attorney John Lockwood, who specializes in cannabis law.
Paula Savchenko, an attorney and consultant for Belushi’s application, warned that without legislative intervention, it could take years for the new licensees to commence operations.
“Without a legislative fix, these licenses could be delayed anywhere from six months to two years,” Savchenko, founding partner of Cannacore Group and PS Law Group, remarked in a phone interview.
Despite the setback with the recreational marijuana proposal, the announcement regarding the licenses brought some excitement.
“We’re still optimistic. Naturally, the majority in the industry would have preferred the recreational measure to pass, but we are confident it will eventually succeed within the next two to four years,” Savchenko said, adding that while Belushi’s brands are more aligned with recreational markets, they were prepared to enter the medical sector when they submitted their application.
Quincy-based Trulieve, Florida’s largest medical-marijuana operator, which invested over $150 million in Amendment 3, welcomed the increase in competition.
“We are pleased that the licenses are finally being issued, bringing the total number of licensees to 47. We look forward to continuing our collaboration with the governor and legislature to enhance access to safe, lab-tested cannabis for Floridians,” Trulieve said in a statement.
Source: FloridaTrend
