Invite them ‘an arm and a leg!’ — Florida Gov. DeSantis is targeting weed companies

Through Nina Zdinjak

The situation is looking bleak for cannabis companies in the Sunshine State. Republican Gov. Ron DeSantis believes medical cannabis companies should pay a lot more to legally operate in Florida.

The state “should be charging these people more,” DeSantis said, according to the Tampa Bay Times. “I mean, these are very valuable licenses. I would charge them an arm and a leg. I mean everyone wants those licenses.”

DeSantis didn’t say whether he meant medical marijuana companies that already have operations in the state, like Trulieve Cannabis Corp., or companies that aren’t yet doing business in Florida but are interested.

In any case, DeSantis’ plan is bound to be a talking point among the state’s major companies headquartered and based there, including Red White & Bloom, Columbia Care, Curaleaf Holdings, Fluent and Verano Holdings.

DeSantis’ statement follows multi-state cannabis operator MedMen Enterpise Inc.’s $63 million sale of Florida businesses to Green Sentry Holdings LLC. And earlier this month, Trulieve opened a new medical dispensary in Kissimmee.

In 2015, medical cannabis operators in Florida had to pay around $60,000 to sell low-THC marijuana products. Businesses must also renew their licenses every two years.

RELATED: Here’s How Many Voters Support Legal Marijuana in Florida

“Why shouldn’t we take this opportunity to make money for the state?” DeSantis said. “But I think that would require legislative change (by the legislature) and I don’t think we could do that simply by administrative regulation.”

Photo by Ivan-balvan/Getty Images

What Makes Florida Medical Marijuana Licenses So Valuable? According to Sally Kent Peebles, a Jacksonville-based partner at national cannabis law firm Vicente Sederberg LLP, these are “the most valuable licenses in the world” thanks to the way the state’s medicinal cannabis industry is structured.

“Most states have much lower fees to get a license,” Peebles said. “But Florida is way more unique than any other state because we’re the only state where you can open as many establishments as you want with one license, without limitation.”

RELATED: Why Can’t Black Farmers Get Medical Marijuana Licenses in Florida?

Also, most cannabis companies don’t make as much profit as is widely believed, being taxed “on ghost income” at a rate of 85% or even higher.

“The idea that these companies are making millions and millions of dollars and just sit back and twiddle their thumbs and happily laugh at everyone while they spread the dough just isn’t the case,” she said.

Even if the application fee were to go up, Peebles believes that wouldn’t discourage those interested in running a cannabis business in the state, especially given the hope that Florida will legalize recreational cannabis in 2024.

New emergency rule

Florida’s health authorities recently released a much-anticipated rule setting THC dosage amounts and supply restrictions on products doctors can order for medical marijuana patients, writes Fox 35 Orlando.

Under the new emergency rule, there is a 70-day total supply limit of 24,500 mg THC for non-smokable cannabis. Dosing caps for various delivery methods such as edibles, inhalation and tinctures are also established.

The rule also promotes state law mandating a 2.5 ounce limit for smokable cannabis products over 35 days. When it comes to THC in smokable products like whole flower, the limit is actually based on weight and not THC content. Additionally, under the new rules, there is a procedure for doctors to request a waiver for patients who they believe may need more than is allowed under the limits. The rule went into effect on Monday.

This article originally appeared on Benzinga and has been republished with permission.