A Florida appellate court docket dominated that the state’s medical cannabis licensing system is unconstitutional, setting the stage for tremendously expanded enterprise alternatives in one of many nation’s fastest-growing markets.
Discovered unconstitutional have been legislative measures that imposed license caps and vertical integration.
“The takeaway right here is that whereas the choice will almost definitely be appealed to the Florida Supreme Court docket, this opens the door to the opportunity of the Florida market opening as much as extra gamers, with the obstacles to entry being lowered,” Sally Peebles, a cannabis legal professional within the state, wrote in an electronic mail to Marijuana Enterprise Every day.
Peebles added that if vertical integration is eradicated, it is going to be cheaper to enter the market, “permitting extra mom-and-pops to enter the market.
As well as, extra licenses will likely be issued if the cap is lifted, in accordance with Peebles.
That may create a “extra aggressive surroundings,” resulting in extra revolutionary merchandise and, finally, decrease costs, she contends.
Jeffrey Sharkey, government director of the Medical Marijuana Enterprise Affiliation of Florida, concurred.
“If upheld, this ruling might dramatically change the medical marijuana regulatory panorama in Florida,” he wrote in an electronic mail to MJBizDaily.
As of July 5, six vertically built-in MMJ companies operated 120 of the state’s 142 dispensaries.
The 2019 Marijuana Enterprise Factbook initiatives that MMJ gross sales in Florida will attain $425 million-$525 million this yr, up from $225 million-$300 million in 2018.
The ruling by the First District Court docket of Attraction received’t have an instantaneous influence, even when the state decides to not problem the choice.
Whereas the appellate court docket affirmed a lower-court choice, it differed in that it permits the Florida well being division time to ascertain numerous requirements earlier than issuing extra MMJ licenses.
Jeff Smith could be reached at [email protected]