Could the failure of Amendment 3 give a boost to medical marijuana in Florida?

Nearly 56% of Florida voters supported a measure that would have allowed recreational use of marijuana for adults, but that wasn’t enough to get the proposed constitutional amendment across the finish line.

The failure of Amendment 3 on Tuesday’s vote raises questions about the future of the medical marijuana industry in a state with more cannabis patients than any other state but where some operators have struggled to gain a foothold.

The recreational marijuana proposal would have allowed the state’s 25 licensed medical marijuana businesses to begin selling marijuana products to people over 21 — including Florida’s more than 100 million annual visitors — without regard to medical necessity.

Trulieve, Florida’s largest medical marijuana operator, pumped more than $143 million into the effort and contributed about 94% of the total money raised by the Smart & Safe Florida political committee that sponsored the initiative.

Nearly 6 million Floridians voted in favor of Amendment 3. But Governor Ron DeSantis marshalled his executive branch in a state-backed crusade against the measure, playing an outsized role in blocking the 60% needed to pass the measure feed.

Without a doubt, the approval would have generated big money for Quincy-based Trulieve, along with other cannabis companies in the state. Trulieve surpasses other Florida operators in revenue and has nearly twice as many pharmacies as its largest competitor.

But the demise of Amendment 3 could strengthen the state’s medical marijuana industry, which has struggled to compete with hemp-based, euphoria-inducing products sold at gas stations, CBD stores and online at a fraction of the price. cost of items sold by Trulieve and other licensed products. operators.

“It’s all speculative that Amendment 3 would become a gold mine for operators,” John Lockwood, an attorney who specializes in cannabis law, told the News Service of Florida on Wednesday. “Prior to this amendment, Florida was one of the most sought-after jurisdictions for multi-state operators, and regardless of how yesterday’s vote went, that will continue to be the case.”

Florida voters overwhelmingly approved a constitutional amendment in 2016 allowing medical marijuana. With the possibility of recreational pot on the horizon, investors continue to be drawn to the state despite fluctuations in the value of licenses to operate medical marijuana businesses.

For example, a medical marijuana license in Florida sold for about $60 million seven years ago, and another license sold in January for $13 million. License values ​​may also reflect the amounts of assets or liabilities held by companies seeking to divest operations.

The number of Floridians enrolled in the medical program grew steadily in the years after its inception.

But the number of patients has hovered around 800,000 in recent months as pressure on Amendment 3 increased, and the lack of a regulated recreational option could allow the number of cannabis patients to blossom, experts said.

Florida still has an “important market” even without a recreation program, said Tallahassee attorney Jim McKee.

“I think there could be some concern, that there was excitement about passing recreational marijuana, so there were companies investing a fair amount of capital in the expectation” that the proposal would pass, McKee said.

The lack of a recreational marijuana market could negatively impact some Florida operators who were banking on its success.

“Are there any entities that are a little bit overbuilt, or spent more capital than they otherwise would have, without the recreational amendment being in the market? You think about things like a possible oversupply; if someone were to build facilities, it could be more than is needed to serve the medical marijuana market. But I do think we will see the registry continue to grow,” said McKee, an attorney with the firm Foley & Lardner LLP.

As he stormed the state ahead of Tuesday’s election, DeSantis took aim at Trulieve’s investment in the pot proposal, accusing the company of corporate greed. He also took aim at the lack of a provision in the initiative that would have allowed people to grow their own cannabis, which could alienate voters who might otherwise be more open to recreational marijuana.

The approval of 55.89% of voters shows that “people are concerned about this issue,” Trulieve CEO Kim Rivers told the News Service on Wednesday.

“Millions of Floridians have signed the petition. Another 6 million Floridians showed up at the polls. We have the opportunity to make real change and some progress again,” she said.

Rivers hopes state lawmakers will work with the industry to expand the medical program or take additional steps to increase Florida’s access to marijuana. Patients must pay $75 per year to the Department of Health to register for the program. Patients must visit a doctor every seven months to continue participating in the program. The doctor visits can cost up to $400 annually.

Addressing the cost and frequency of doctor visits could reduce “some of the friction” with the medical program, Rivers said.

Trulieve’s CEO and other operators also hope lawmakers will revisit an effort vetoed by DeSantis in June that targeted euphoria-inducing hemp-based products.

The hemp industry was represented by lobbyists Evan Power, chairman of the Republican Party of Florida, and Bill Helmich, the party’s executive director.

“As we think about the fact that on the other side we have a completely unregulated, effectively open market, and how the Legislature decides to balance those two things, I think this is one of the conversations that I hope that this will take place in the next session,” Rivieren said.

DeSantis, in opposing Amendment 3, also highlighted the state’s medical program and suggested that many more patients could qualify under Florida law.

“I think it (the campaign) raised awareness of the medical program and its safety because everyone discussed it as safe and everyone now knows that there are all these great, legitimate pharmacies out there,” Aaron Bloom, CEO of DocMJ, told the News Service. “Every time it’s in the news it raises awareness and is good for patients.”