Marijuana Licensure

How does marijuana licensure affect regulated industries?

Licenses to grow, process, or dispense adult-use marijuana, medical marijuana, and hemp play a crucial role in shaping the landscape for cannabis businesses in Florida. These licenses regulate the cultivation, processing, and distribution of cannabis products, imposing strict requirements and compliance standards on companies operating within the industry.

For Florida-based cannabis companies, obtaining the necessary licenses is essential for legal operation and market participation. These licenses not only grant permission to engage in specific activities but also dictate the scope, scale, and legitimacy of operations. From large-scale cultivation facilities to retail dispensaries, each segment of the cannabis supply chain requires appropriate licensing to function within the bounds of the law.

Understanding the nuances of licensing regulations and staying abreast of updates and changes is paramount for cannabis companies in Florida. By prioritizing compliance, maintaining transparency, and engaging in responsible business practices, companies can navigate the complexities of licensing requirements and position themselves for sustainable growth and success in the evolving cannabis market.

Need help regarding marijuana licensure? Schedule your consultation today with a top regulated industries attorney.

In Florida, which laws and regulations apply to marijuana licensure?

In Florida, several laws and regulations govern administrative litigation for cannabis industry license holders, shaping the legal landscape for cannabis companies. These include:

Florida Medical Marijuana Control Program (Chapter 381.986, Florida Statutes): This statute outlines the requirements and procedures for licensing medical marijuana treatment centers (MMTCs), governing their operations, and enforcing compliance with state regulations.
Florida Department of Health Regulations (Chapter 64-4, Florida Administrative Code): These regulations provide detailed guidelines for the licensing, operation, security, and record-keeping requirements for MMTCs in Florida.
Administrative Procedures Act (Chapter 120, Florida Statutes): This statute governs administrative proceedings, including hearings, appeals, and judicial review, related to cannabis industry licensing, compliance, and enforcement actions.

What are common issues regarding marijuana licensure that lead to litigation?

The following issues are among the most common in actions regarding marijuana licensure:

Failure to Meet Application Requirements: Businesses may face litigation if they fail to meet the stringent requirements outlined in the license application process. This could include incomplete documentation, inadequate financial disclosures, or insufficient operational plans.
Zoning and Land Use Violations: Businesses must comply with local zoning regulations and land use ordinances when establishing cannabis operations. Litigation may arise if companies fail to obtain necessary permits or approvals, or if their activities violate zoning restrictions.
Competition Disputes: The competitive nature of the cannabis industry can lead to disputes between businesses vying for limited licenses or market share. Allegations of unfair competition, collusion, or sabotage may result in litigation between rival companies.
Regulatory Compliance Issues: Cannabis businesses must adhere to strict regulatory guidelines governing cultivation, processing, and distribution. Failure to comply with state and federal regulations, such as product testing requirements or labeling standards, can lead to legal action by regulatory authorities or affected parties.
Intellectual Property Disputes: Litigation may arise from disputes over intellectual property rights, including trademarks, patents, or trade secrets related to cannabis products, branding, or proprietary technologies. Companies must protect their intellectual property assets and defend against infringement claims to avoid legal challenges.
Contract Disputes: Agreements between cannabis businesses, suppliers, distributors, or contractors can give rise to litigation if one party breaches the terms of the contract or disputes arise over payment, delivery, quality control, or other issues.

We are value-based attorneys at Jimerson Birr, which means we look at each action with our clients from the point of view of costs and benefits while reducing liability. Then, based on our client’s objectives, we chart a path to seek appropriate remedies.

To determine whether your unique situation may necessitate litigation, please contact our office to set up your initial consultation.

What steps should businesses take to minimize the risk of litigation over marijuana licensure?

To minimize the risk of litigation over Licenses to grow, process, or dispense adult-use marijuana, medical marijuana, and hemp, businesses can implement the following strategies:

Thorough Due Diligence: Conduct comprehensive research and due diligence before applying for licenses or entering into business agreements to ensure compliance with all legal and regulatory requirements.
Legal Compliance: Stay updated on changes to cannabis laws and regulations at the state and federal levels and maintain strict compliance with licensing, zoning, and operational requirements.
Document Management: Maintain accurate records and documentation related to license applications, regulatory compliance, business agreements, and intellectual property to demonstrate diligence and transparency in legal proceedings.
Risk Assessment: Identify potential areas of legal risk within the business operations, such as zoning issues, contract disputes, or regulatory compliance gaps, and develop proactive mitigation strategies to address them.
Legal Counsel: Consult with experienced cannabis attorneys or legal advisors to navigate complex regulatory frameworks, review contracts, resolve disputes, and mitigate legal risks effectively.
Dispute Resolution Mechanisms: Incorporate alternative dispute resolution mechanisms, such as mediation or arbitration clauses, into contracts to resolve conflicts efficiently and avoid costly litigation proceedings.

Frequently Asked Questions

Can a business transfer or sell its cannabis license to another entity?

Yes, in Florida, cannabis licenses may be transferable subject to regulatory approval and compliance with applicable laws and regulations governing license transfers.

What are the consequences of operating a cannabis business without a valid license in Florida?

Operating a cannabis business without a valid license in Florida can result in severe penalties, including fines, injunctions, criminal charges, and the closure of operations by regulatory authorities.

Can businesses appeal a denial of their cannabis license application in Florida?

Yes, businesses have the right to appeal the denial of their cannabis license application in Florida through the appropriate administrative or legal channels, such as administrative hearings or court proceedings.

Are there any restrictions on advertising cannabis products or services in Florida?

Yes, Florida imposes strict regulations on the advertising and marketing of cannabis products and services, including restrictions on content, placement, and targeting to prevent exposure to minors.

Have more questions about a marijuana licensure-related situation?

Crucially, this overview of marijuana licensure does not begin to cover all the laws implicated by this issue or the factors that may compel the application of such laws. Every case is unique, and the laws can produce different outcomes depending on the individual circumstances.

Jimerson Birr attorneys guide our clients to help make informed decisions while ensuring their rights are respected and protected. Our lawyers are highly trained and experienced in the nuances of the law, so they can accurately interpret statutes and case law and holistically prepare individuals or companies for their legal endeavors. Through this intense personal investment and advocacy, our lawyers will help resolve the issue’s complicated legal problems efficiently and effectively.

Having a Jimerson Birr attorney on your side means securing a team of seasoned, multi-dimensional, cross-functional legal professionals. Whether it is a transaction, an operational issue, a regulatory challenge, or a contested legal predicament that may require court intervention, we remain tireless advocates at every step. Being a value-added law firm means putting the client at the forefront of everything we do. We use our experience to help our clients navigate even the most complex problems and come out the other side triumphant.

If you want to understand your case, the merits of your claim or defense, potential monetary awards, or the amount of exposure you face, you should speak with a qualified Jimerson Birr lawyer. Our experienced team of attorneys is here to help. Call Jimerson Birr at (904) 389-0050 or use the contact form to schedule a consultation.