Florida Gov. DeSantis on Pot Licensees: ‘Charge These People More’

Florida Gov. Ron DeSantis told a group of reporters Aug. 23 that holders of medical cannabis licenses in the state would have to pay more for their license application and renewal fees. But operators in the state say the increase in application and renewal fees could spell the end for some struggling businesses.

State officials “should be charging these people more,” DeSantis said.

“I mean, those are very valuable licenses,” the governor continued. “I would bill them an arm and a leg. I mean everyone wants those licenses.”

CBS News Miami reports that it remains to be seen whether or not the governor was referring to existing license holders or prospective license holders.

But Florida’s license and renewal rates already exceed other states’ fees. That could be because Florida’s licensing system requires operators to grow, process, and sell marijuana and derivative products without limiting the number of retail locations, and attorneys say that makes the state’s licenses more valuable.

After taking office as governor in January 2019, one of DeSantis’ key promises is to boost Florida’s economy.

Gov. DeSantis pushed to lift the ban on smokable flower in Florida. Florida voters passed a constitutional amendment legalizing medicinal cannabis in 2016, but regulations banning smokeable cannabis were passed by the legislature and signed into law by former Gov. Rick Scott.

Cannabis advocates sued, claiming the ban violated the amendment passed by voters. A state court agreed, invalidating the rule, but stood by when an appeal from Scott’s government made its way through the courts. When Gov. DeSantis took office, however, he said that unless the ban was lifted, his administration would drop appeals of the court ruling.

The ban on smokeable cannabis was officially lifted on March 18 with Gov. Ron DeSantis signing a compromise bill that lawmakers passed. Smokable flower is, unsurprisingly, by far the most popular dish at Florida’s 460+ medicinal cannabis dispensaries.

Earlier in 2014, low-THC products were allowed for certain patients. Then medical cannabis companies, which were among a first batch of applicants in 2015, paid over $60,000 to sell low-THC cannabis.

Then Florida’s 2016 constitutional amendment established more of what is considered a mature medicinal cannabis market with a variety of licensed products.

Florida law requires rules to be approved by law when the cost of compliance to those companies exceeds $200,000 in one year or $1 million over five years.

An increase in application and renewal fees “would be unfortunate,” Brady Cobb, attorney, founder and CEO of Green Sentry, told CBS News. “When it happens, it happens,” Cobb said. Cobb added that Florida could make more money by taxing cannabis products or by allowing operators to wholesale products to each other and tax those sales instead.

License fees for black farmers in Florida also too high

The state charged a higher fee in a recent round of applications for a license provided for by the Florida law of 2017 for a black cannabis farmer. Under rules established by the Department of Health, applicants had to pay a fee of $146,000 to apply for the Black Farmer license, more than double the fee from the 2015 application process.

“Black farmers shell out $146,000 just to apply for a license to grow medical marijuana,” reports the Miami New Times.

Last year, Agriculture Commissioner Nikki Fried called the high black farmer license fees “discriminatory”.

The department accepted a dozen applications for the Black Farmer license but has not announced the license winner. A new round of license applications will restart after the Black Farmer License is issued, but the state has not set a timeline. At least 150 applicants are expected.