FL: Potential Pot-Growing Industry More Subdued Ahead Of November Vote

Katelyn Baker

Well-Known Member
Florida voters will take another crack at legalizing medicinal marijuana with a referendum nearly identical to the one that failed two years ago.

But this year's run-up to the vote is much more subdued for would-be purveyors of the weed.

One of the cottage businesses in 2014 before the vote on the measure that would create legal marijuana growing operations in Florida was the proliferation of seminars and how-to advisory classes that cost hundreds of dollars for those who were considering getting into the commercial sale of marijuana.

Those are almost nonexistent this year.

In Jacksonville alone, a seminar at a hotel near the Jacksonville International Airport was sold out with dozens of participants two months ahead of the vote in 2014 that would ultimately be narrowly rejected by the voters.

Richard Blau, an attorney for the Regulated Products Group for the law firm GrayRobinson, said the hype over the possible legalization of medicinal marijuana two years ago was a huge mistake.

Blau currently has several clients in the Jacksonville area who are preparing to get into the medical marijuana cultivation industry. But they aren't throwing money at supplies and equipment ahead of the vote as supporters of the referendum have learned their lesson.

"It is a more sensible, reasonable and responsible approach to this," Blau said. "It's far from a true, uniform consensus that everybody is on board with legalization. I think those that are involved in this process are attempting to be careful and to be sensitive to the divergent views that exist."

That was not the case in 2014, and public opinion polls before the vote bolstered assumptions the measure would be approved, as most indicated that a majority of Floridians favored legalization of medical marijuana. That trend tightened toward the vote, but it still looked like there would be enough votes for the 60 percent majority needed to approve the constitutional amendment. The vote fell short by about 3 percentage points of the votes necessary.

Many polls this year show a similar trend of support from voters in Florida who say they would approve the constitutional amendment that would legalize medicinal pot.

Keith Stroup, founder and legal counsel for the National Organization for the Reform of Marijuana Laws, said he was disturbed how what started as a cause based in liberty was exploited in 2014 by business interests in Florida that were presumptuous.

"The first time, people got ahead of themselves a bit," Stroup said from his office in Washington, D.C. "There were some colleagues of mine who were holding seminars and charging $600 or $800 for people to attend, claiming that, somehow, if they attended these seminars they would have a leg up on getting a license to either commercially cultivate marijuana or sell it at retail levels.

"No one could possibly know what those requirements were going to be because they're subject to whatever regulations are adopted by the state," Stroup said. "I thought it was a bit shameful two years ago. It was way cart-before-the-horse, and people were simply being greedy overcharging people to attend a seminar that was essentially worthless."

In between the last referendum and the pending vote on medicinal marijuana set for Nov. 8, the Florida Legislature did enact the so-called "Charlotte's Web" law. That measure cleared the way for five licenses to be issued for each geographic area of the state for nurseries to grow low-THC marijuana designed to alleviate afflictions mostly in children, such as epilepsy.

That action alone caused a flurry of legal battles challenging the licenses, including Loop's Nursery, which has properties in both Duval and St. Johns counties where owner David Loop wants the right to grow the plant. He was not granted a license.

With the broader referendum measure that is virtually the same as the 2014 ballot initiative, Stroup said there will be a proliferation of business in the state related to medical marijuana because it will be high-potency pot and it will be allowable in the form of smoking, which the Charlotte's Web law does not permit.

"The potential investors are simply more savvy this time," Stroup said.

The Charlotte's Web law was "incredibly limited and narrow in scope," Stroup said. But even after regulations are settled if voters in November approve the broader legalization, the potential business impact on Florida should be profound.

"This proposed voter initiative is similar to about 26 or 27 other medical-use laws that are in effect around the country," Stroup said. "The market [in Florida] will be at least 100 times larger than under your current [law].

"Over the course of a couple of years, you're going to have a thriving industry. I would guess that you're going to have tens of thousands of patients who qualify under the initiative. Almost none of them would qualify under the legislation [already] passed by your Legislature," Stroup said.

Don't look for a medicinal marijuana dispensary on every single corner of a city, Stroup said. But it's likely that the number of operations – and more important support businesses such as equipment suppliers and distribution networks – would be developed in dozens if not hundreds of locations throughout the state.

While Stroup is convinced approval of the amendment this year would lead to a boom in the marijuana cultivation and distribution industry, Blau cautioned that even if the measure passes, it's only legalizing cultivation and sale of the drug. The ballot initiative does not spell out how it will be regulated.

"In large part, that will depend on the Legislature and the executive branch in the form of the Department of Health and the Office of Compassionate Use," Blau said. "Once the amendment passes, they have a period of time to come up with rules and guidelines that expand the structure beyond Charlotte's Web and decide how to do it."

Stroup agreed that the details in regulation will dictate the rate of growth of marijuana operations in Florida.

But he's still convinced that a bonanza is on the horizon for the industry that has already been witnessed in other states that have legalized medicinal marijuana, such as California. But he said even California is about to tighten its regulations.

Blau said the legal tussles over the Charlotte's Web legalization show that there may not be a smooth transition for the broader pot business if November's referendum is approved.

"Having to go through so many administrative challenges ... was a wake-up call for many of those involved, whether they were government officials or potential industry members or elected officials," Blau said. "I think it was a tremendously educational process, and to some degree a very painful process. But as they say sometimes, no pain, no gain.

"But I think it taught a lot of people how to move forward more responsibly."

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News Moderator: Katelyn Baker 420 MAGAZINE ®
Full Article: Potential Pot-Growing Industry More Subdued Ahead Of November Vote That Could Legalize Medical Marijuana
Author: Drew Dixon
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Photo Credit: Associated Press
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