Since the invention of air-conditioning, the Sunshine State has attracted millions of visitors each year and remains a vacation destination. According to Florida's tourism department, approximately 135 million people visited the state in 2023. Over the years, draws to Florida have included warm weather, beautiful beaches, world-class theme parks, professional sports, and countless other entertainment options.
As the result of a proposed ballot initiative and a recent ruling by the Florida Supreme Court, the recreational use of marijuana by those 21 years of age and older could soon be added to that list of reasons to visit. On November 5, 2024, Florida will decide whether to authorize the "adult personal use of marijuana" via a ballot initiative that was, per the state's Division of Elections website, heavily paid for by Trulieve, which has the largest footprint of medical marijuana dispensaries in Florida.
As of April 2024, there are nearly 900,000 patients with active medical marijuana cards in Florida; thus, the number of potential customers for the current medical marijuana companies is limited. However, if the ballot initiative receives a sufficient number of votes, that number could increase exponentially. It is important to note that Florida requires a 60% vote for ballot initiatives to pass. Assuming passage, the current medical marijuana treatment centers (dispensaries) will be authorized to sell to recreational customers in addition to traditional medical marijuana patients.
Podcast: Florida Is the Most Exciting Thing Happening in U.S. Cannabis Right Now
The most recent ballot initiative involving marijuana was Amendment 2, which passed after receiving 71% of the vote in 2016. Amendment 2 was a constitutional amendment that created the Florida medical marijuana program that is in operation today. This program has been the catalyst for more than 600 dispensaries in Florida that sell approximately 7,000 pounds of flower and other smokeable cannabis products every week, in addition to hundreds of millions of milligrams of THC sold via other, non-smokable products.
That leads us to the exciting part for Florida's incumbent industry, potential investors, and multistate operators, as well as anyone in the state who is 21 or older, the recreational market in the Sunshine State could be enormous. A nearly limitless customer pool could create the next green rush, especially in the southern United States, where the next-nearest recreational marijuana state is hundreds of miles away. The regional monopoly, the millions of Floridians, plus the hundreds of millions of visitors, could be a boon for the industry in a way not seen in decades.
Dan Russell has worked as general counsel of Surterra Florida, the first company to legally cultivate medical marijuana in the state. He formerly served as a member of the Medical Cannabis Advisory Committee, as appointed by Commissioner of Agriculture Nikki Fried.Dan Russell
If you or your company is interested in what could be the next big thing in the marijuana industry, Florida must be on your radar in 2024.
Dan Russell is a partner in Jones Walker LLP's Government Relations Practice Group in Tallahassee, Florida, where he focuses on civil and administrative litigation, gaming, and governmental law. Russell works with parties whose interests, investments, and operations in various heavily regulated industries put them under increased scrutiny by government regulators and law enforcement officials. He has worked as general counsel of Surterra Florida (the first company to legally cultivate medical marijuana in the state) and formerly served as a member of the Medical Cannabis Advisory Committee, as appointed by Commissioner of Agriculture Nikki Fried.