The Florida Supreme Court, siding with the state, rejected a challenge to Florida’s medical cannabis industry structure.
The challenge, issued by the Florida-based cannabis company Florigrown, claims that Florida’s “vertical integration” model for its medical cannabis industry is unconstitutional. The model requires licensed cannabis companies to handle all aspects of a cannabis business themselves, including growing, processing, distribution and selling of cannabis products. Although the lower courts sided with Florigrown, the Supreme Court reversed their decision and put their rules on hold.
Florigrown also argued that a cap on the number of available licenses was unconstitutional as well. Previous rulings that the license limit is unconstitutional “are based solely on a factual finding that the statutory caps have made medical marijuana unavailable, or insufficiently available, in this state and partly on a legal conclusion that the statutory caps are unreasonable in light of the amendment’s purpose,” the majority opinion said.
Other opponents of the vertical integration believe that it only allows for businesses with a large financial backing to be able to enter the industry. A spokesperson for the Florida Department of Health said the department is “pleased” with the decision in a statement.
“This is a sad day for those of us that think the free market is what works best, and an even worse day for Florida patients who will continue to struggle with high prices and low supply,” Jeff Marks, a co-owner of Florigrown, said. “The people of Florida didn’t vote for this system created by the Legislature where 22 mega-businesses completely control every aspect of medical cannabis. Floridians needed the Supreme Court to stand up for them, and today they declined to do that.”
The Florida Supreme Court recently rejected another proposed amendment that would have legalized recreational cannabis in the state. The court ruled that the wording of the proposed bill would have been misleading to Florida voters.
