A Florida appellate court ruled that the state’s medical cannabis licensing system is unconstitutional, setting the stage for greatly expanded business opportunities in one of the country’s fastest-growing markets.
Found unconstitutional were legislative measures that imposed license caps and vertical integration.
“The takeaway here is that while the decision will most likely be appealed to the Florida Supreme Court, this opens the door to the possibility of the Florida market opening up to more players, with the barriers to entry being lowered,” Sally Peebles, a cannabis attorney with Vicente Sederberg LLP in Florida, wrote in an email to Marijuana Business Daily.
Peebles added that if vertical integration is eliminated, it will be less expensive to enter the market, “allowing more mom-and-pops to enter the market.
In addition, more licenses will be issued if the cap is lifted, according to Peebles.
That would create a “more competitive environment,” leading to more innovative products and, eventually, lower prices, she contends.