On the cusp of the Thanksgiving holiday, the Florida Department of Health, Office of Medical Marijuana Use (“OMMU”) announced the twenty-two (22) applicants it sent Notice of Intent Letters to approve their April 2023 MMTC Batching Cycle applications. Over a year and a half since their application submission, these twenty-two (22) companies were selected from a pool of seventy-four (74) applicants, who all vied to be licensed as a vertically integrated Medical Marijuana Treatment Center (“MMTC”). The November 26th letters came out exactly three (3) weeks after Florida’s general election failed to acquire a supermajority vote to approve of Amendment 3, which would have legalized recreational cannabis in the Sunshine State. Although operators were hoping to enter the market upon Amendment 3 passing, the state’s medical cannabis market is still competitive for later entries as the state operates the third-largest market by revenue in the country bringing in $2.5 billion in sales.
April 2023 Batching Cycle
Nearing the end of 2022, the Department of Health issued Emergency Rule 64ER22-9, which set forth the MMTC Application Instructions, Requirements, and Forms, as well as the MMTC Evaluator Instructions Manual for the first general application process since 2015. The most recent application process held by the OMMU was specifically tailored for Pigford/BFL black farmers who were discriminated against by the United States Department of Agriculture (“USDA”) and were class members of the infamous federal lawsuits. Further, in early 2023, the Department of Health issued a second emergency rule, 64ER23-1, setting forth that interested applicants had until April 28, 2023, by 5 PM (ET) to submit their comprehensive applications.
Given the highly competitive nature of Florida’s cannabis industry, applicants were required not only to meet stringent regulatory standards but also to exceed expectations in showcasing their readiness to operate in the state’s market. This involved securing properties for cultivation, manufacturing, and dispensing across the state, as well as assembling a team of seasoned experts to demonstrate comprehensive knowledge and expertise in every facet of a vertically integrated operation. Only those who went above and beyond were able to position themselves as strong contenders for a coveted MMTC license. Cannacore Group worked with two (2) applicants in the April 2023 batching cycle. One of whom was successful in obtaining a Notice of Intent to Approve Letter from the OMMU.
Pathway Forward
Although those in receipt of the Notice of Intent to Approve Letters are ready to enter Florida’s billion-dollar market, precedence has shown that litigation will likely ensue by those who were not as lucky. Applicants who were provided a Notice of Intent to Deny Letter will have twenty-one (21) days from the receipt of the letter to appeal the OMMU’s decision. During the informal hearing, if the presiding officer determines the denial should be upheld, the applicant will likely appeal the decision to the First District Court of Appeals. Cannacore Group will be working with one of the applicants who will be appealing the denial of their application.
For those who received approval, litigation can seem daunting; however, there is an opportunity for the legislature to step in, as it has done in the past, to move the process forward while litigation ensues. Even though this is not guaranteed, many of the applicants who received approval will be pushing for this to occur during the 2025 legislative session.
Conclusion
The issuance of new MMTC licenses in Florida marks a significant turning point in the state’s cannabis industry. For those awarded licenses, the path ahead involves scaling operations and meeting regulatory expectations to serve Florida’s over 880,000 qualified patients. Meanwhile, for those planning to appeal the decision, this juncture is a reminder of the importance of persistence and strategic action in navigating Florida’s highly competitive licensing process. With the potential for legalization by 2026, Florida’s cannabis market remains one to watch closely.
If you would like to discuss your options, contact Paula Savchenko, Esq., at paula@cannacoregrp.com.