Florida’s Medical Marijuana Licensing Battle Heats Up in Months-Long Hearing
A lengthy hearing has begun in Florida to determine the fate of 13 applicants who were rejected for medical marijuana licenses. The hearing, which is expected to run until mid-February, is the result of a year-long battle over the licensing process.
In November 2024, the Florida Department of Health announced that it would be awarding licenses to 22 applicants, but the process was marred by controversy and legal challenges. The rejected applicants are now seeking to overturn the state’s decision, arguing that their scores were incorrectly calculated.
The hearing is focused on scoring disputes, with the applicants claiming that the state’s evaluation process was flawed. The scores ranged from 1,450 to 3,280 points, with the lowest-scoring applicant selected for a license receiving a score of 2,826. The applicants are arguing that their scores were unfairly low, with some claiming that they were penalized for minor errors or omissions.
One applicant, Liner Source, Inc., is arguing that it was unfairly scored low on the “cultivation” section of its application. The company claims that it had secured significant cultivation infrastructure and equipment, but was still given a score of five out of 60 points. The applicant’s attorney, Will Hall, argued that the score was flawed and that the company’s ability to secure its infrastructure and equipment was not accurately reflected in its score.
In addition to the scoring disputes, the hearing is also considering eligibility challenges and industry context. One applicant, MSD Enterprises LLC, was rejected due to a technicality, as it failed to provide the names of every “natural person” affiliated with the applicant. Another applicant, Niraam LLC, is disputing a prohibition against ownership in more than one medical marijuana license.
The new licenses are required under a 2017 law that aimed to increase the number of medical marijuana licenses as the number of eligible patients grows. The current round of licensing is the first major opportunity for newcomers to the industry to vie for licenses since the 2017 legislation passed.
The hearing is a complex and contentious process, with hundreds of exhibits and days of witness and expert testimony. The outcome is expected to have significant implications for the medical marijuana industry in Florida, which currently has 25 licensed operators running 736 dispensaries throughout the state.
