Florida enacts medical cannabis regulations and opens doors for new businesses

Florida state regulators unveiled new rules for its medical marijuana program this week, a move that could result in a significant increase in the number of licensed businesses there.

Local news station FOX13 in Tampa reports that the state Department of Health and Human Services on Monday “launched a process to grant up to 22 additional medical marijuana licenses in a much-anticipated move that could double the size of Florida’s medical cannabis industry.” . while also announcing “an emergency rule that would make it far more expensive for marijuana operators to renew their licenses every two years, increasing the cost from about $60,000 to more than $1 million.”

The state authority has issued an additional emergency regulation that changes the financial obligation of potential pharmacy applicants. According to Florida Politics, “New companies wishing to enter Florida’s lucrative medical marijuana market must file a $146,000 non-refundable fee with the state and submit an application, which the state will approve under a new law issued Monday emergency regulation is being examined under competition law.”

The outlet reports that the “initial application fee is more than double what licensees originally paid, but reflects the amount the state charges so-called Pigford applicants,” and that although “Gov. Ron DeSantis has been reluctant to increase operating costs for Florida businesses, having complained in the past that he didn’t think the state was charging enough for lucrative medical marijuana licenses.”

Florida Politics provides more background on what the change means for potential applicants:

“Not only the application costs will increase. The state also appears to be increasing the cost for companies to keep the license. Medical marijuana treatment centers currently charge $60,063. In determining the fee, the state calculates how much money it has spent regulating the industry over the past two fiscal years and subtracts from that the amount it has earned in application fees. The total is divided by the number of licensed medical marijuana treatment centers.

“It’s not clear how much the state has spent regulating the industry in recent years, but the Department of Health and Human Services in its most recent budget proposal to state legislatures approved a $6.2 million increase for the Office of Medical Marijuana Use (OMMU ) recorded. About half of that will be spent on hiring an additional 31 employees at the Tallahassee headquarters. She also wants to fill new regional offices. The other half is spent on outside contractors who manage the tracking systems from seed to sale; create medical marijuana credentials; conduct background screenings; check licenses; and do external legal work.”

More than 70% of Sunshine State voters approved an amendment in 2016 that legalized medical cannabis treatment for patients with qualifying medical conditions. In the six years since, state officials and lawmakers have continued to tweak and amend the new law.

Earlier this year, the Florida Department of Health released “a much-anticipated rule setting THC dosage levels and supply restrictions on products physicians can order for medical marijuana patients,” public radio station WUSF reported in August.

“The state of emergency establishes a 70-day total supply limit of 24,500 mg THC for non-smokable marijuana and establishes dosage ceilings for various routes of administration such as edibles, inhalation, and tinctures,” WUSF reported at the time. “The rule, which was mailed to patients and doctors on Friday and went into effect Monday, also implements a state law that limits purchases of smokeable marijuana to 2.5 ounces over a 35-day period. While the rule sets limits for THC in non-smokable products, the limits for whole flower and other products that can be smoked are based on weight. They are not based on THC levels, the euphoric component in marijuana. And the emergency rule creates a process for doctors to request a waiver for patients they believe need to exceed the limits. The rule provides no way for patients or doctors to appeal if applications are denied.”

DeSantis, who won re-election last month, has been pushed back and pressured by advocates who want the state to remove dosage limits.