Florida To Award 22 New Cannabis Licenses After 18-Month Wait—Legal Battles Ahead?

Florida's Department of Health announced plans to award 22 new medical cannabis licenses, a decision that could reshape the state's cannabis industry but is likely to face legal challenges.

The announcement, posted Tuesday on the agency's website (via Tallahassee Democrat), comes more than 18 months after applications closed in April 2023.

The new licenses are a result of a 2017 law mandating an increase in licenses as the number of medical marijuana patients grows, which now surpasses 880,000. This process has attracted significant attention since it marks the first chance for new businesses to enter Florida’s medical cannabis market since the law’s enactment.

The department's letters of intent signal approval for 22 businesses out of the 74 that applied last year, each paying a $143,000 application fee. The evaluation process, carried out by consulting firm KPMG, cost the state nearly $1.79 million. However, the letters do not grant immediate operating licenses, leaving room for legal action from applicants who were not selected.

Anticipated Legal Battles

Legal disputes are expected to delay the process, possibly for years, given the competitive nature of Florida's cannabis market.

"Historically, when these sorts of things happen, litigation does occur. You have 22 people that are very happy and 50 people that are not very happy at all," Department of Health spokesperson Jae Williams said in dialogue with The News Service of Florida.

He also noted the substantial investments made by applicants and the department's responsibility to ensure that approved operators meet high standards for quality.

Applicants have called for legislative intervention to prevent prolonged delays. Attorney Paula Savchenko, who worked with Florida Sports Consultants, Inc.—operating as Belushi's Farm Florida—said the process could stall for months or even years without action.

"If we don't have a legislative fix, we're going to see these licenses held up for anywhere between six months to two years," Savchenko said.

Industry Shifts And New Players

Notable applicants receiving letters include Florida Sports Consultants, Inc., led by actor Jim Belushi, who also operates a cannabis farm in Oregon. Other approved businesses include STIIIZY Florida, LLC, A Good Decision, LLC and Theory Wellness of Florida, LLC. The additions bring Florida closer to doubling its licensed operators, which currently stand at 25, managing over 690 dispensaries statewide.

Quincy-based Trulieve Cannabis Corp. TCNNF, the state's largest medical marijuana operator, welcomed the expansion.

"We are pleased that the licenses are finally issued, bringing the number of licensees to 47. We continue to look forward to working with the governor and legislature to expand access to safe, lab-tested cannabis for Floridians," the company said in a statement.

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Broader Context

The decision to award licenses coincides with the defeat of a proposed constitutional amendment that sought to legalize recreational marijuana.

The measure received 56% voter approval but fell short of the 60% threshold needed for passage. Governor Ron DeSantis played a significant role in opposing the amendment, which had been heavily supported by industry leaders, including Trulieve.

"The majority of people in the industry would rather have had recreational pass, but we all are pretty confident that it's going to pass sometime in the next two to four years," Savchenko said.

For now, Florida's medical marijuana industry is bracing for the next phase, with new players poised to enter the market and potential legal hurdles still ahead.

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