State’s medical marijuana industry gets off the ground

Filed under FLORIDA, HEALTH

Five organizations finally chosen to dispense products

BY DARA KAM
THE NEWS SERVICE OF FLORIDA

TALLAHASSEE – Nearly a year behind schedule, Florida health officials on Monday selected five “dispensing organizations” to grow, process and distribute non-euphoric medical marijuana for a select group of sick patients.

Adam Frederick holds his daughter Michaela, 3, on Feb. 4 at Children’s Hospital Colorado in Aurora, Colo. Michaela was deprived of oxygen at birth and suffers from crippling and potentially life-threatening seizures. Her parents began treating her with medical marijuana after seeing a documentary on its benefits and once Adam was transferred from Washington, Ill., to Colorado where it is legal. They say it has drastically reduced her number of seizures. (ANTHONY SOUFFLE/CHICAGO TRIBUNE/TNS)

Adam Frederick holds his daughter Michaela, 3, on Feb. 4 at Children’s Hospital Colorado in Aurora, Colo. Michaela was deprived of oxygen at birth and suffers from crippling and potentially life-threatening seizures. Her parents began treating her with medical marijuana after seeing a documentary on its benefits and once Adam was transferred from Washington, Ill., to Colorado where it is legal. They say it has drastically reduced her number of seizures.
(ANTHONY SOUFFLE/CHICAGO TRIBUNE/TNS)

But many in the industry believe that the biggest challenge in the drawn-out process is yet to come.

The five winners, who scored the highest of 28 applications, are Hackney Nursery in the Northwest region of the state; Chestnut Hill Tree Farm in the Northeast; Knox Nursery in the Central region;

Alpha Foliage in the Southwest region; and Costa Nursery Farms in the Southeast region.

Parents of children with severe epilepsy pushed for a 2014 law to legalize the purportedly non-euphoric marijuana – low in euphoria-inducing tetrahydrocannabinol, or THC, and high in cannabadiol, or CBD – and contended that it can end or dramatically reduce life-threatening seizures.

Frustrating process
Sen. Rob Bradley, who was instrumental in passing the law, said he congratulated state Surgeon General John Armstrong early Monday morning. Applications for the licenses were due on July 8, and Bradley and other lawmakers had become frustrated that it was taking the Department of Health so long to pick the five dispensing organizations.

“I think now the attention should be focused on the industry to make sure that they cause no further delays and we move forward getting this product to these suffering families as quickly as possible,” Bradley, R-Fleming Island, said. “The department did its job. And now it’s time for the industry to step up. No further delays. Let’s move forward.”

Expect challenges
But legal challenges over the awarding of the licenses are almost a given.

“It has always been anticipated that there will be challenges, and I’ve seen nothing in this process to persuade me that we will not see some of the winners challenged,” said Louis Rotundo, a lobbyist who represents the Florida Medical Cannabis Association and who also has a small ownership interest in at least one of the losing applicants.

Losers have 21 days to file challenges, but Patricia Nelson, a former director of the Department of Health’s Office of Compassionate Use who served on the three-member panel that graded the applications, said earlier this year that the challenges to the licenses will not hold up the process.

The winners of the licenses have 75 days to request “cultivation authorization” and, once that authorization has been granted, must begin dispensing the low-THC products within 210 days, meaning that the low-THC products could be on the shelves by next summer. The winners also have 10 business days to post $5 million performance bonds.

Meanwhile, losing applicants are trying to make sense of more than 600 pages of scorecards used to grade the applications by the panel comprised of Nelson; her successor, Christian Bax; and accountant Ellyn Hutson.

Influential lobbyists
Under the law passed last year and approved by Gov. Rick Scott, only nurseries that have been in business in Florida for at least 30 years and grow a minimum of 400,000 plants at the time they applied for a license were eligible to become one of the five dispensing organizations.

The nurseries teamed up with a variety of consultants, including out-of-state marijuana growers, in the hopes of edging out the competition.

Four of the five winners of the licenses – Chestnut Hill, Costa, Hackney and Knox – were represented on the rulemaking committee.

Nearly all of the winners are represented by some of Tallahassee’s most influential lobbyists.

Many of the applicants had applied for the low-THC licenses in the hope of expanding their businesses in the event that a constitutional amendment legalizing full-strength medical marijuana passed. That amendment narrowly failed last year, but a nearly identical measure is almost certain to go before voters next November.

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