LOCAL ROOTS. BROAD REACH. SM Medical Marijuana: Florida Law Overview & The Impact on Commercial Real Estate Tara L. Tedrow, Esq. Land Use Attorney & Chair of the Cannabis and Controlled Substances Group Lowndes, Drosdick, Doster, Kantor & Reed, P.A. Orlando Melbourne Mount Dora www.lowndes-law.com 2017 All rights reserved. Lowndes, Drosdick, Doster, Kantor & Reed, P.A.
Fun Legal Disclaimer MARIJUANA IS ILLEGAL UNDER FEDERAL LAW! INVOLVEMENT IN THE MARIJUANA INDUSTRY COULD LAND YOU IN JAIL WITH YOUR ASSETS FROZEN!
State of Marijuana Laws in the US California was the first state to approve medical marijuana in 1996. Since then: 30 states legalized medical marijuana (plus Washington, D.C., Puerto Rico and Guam) 9 states legalized recreational marijuana
State of Marijuana Laws in the US
What are the last 4 states doing?!
Federal vs. State Law: The Cole Memorandum Eight Enforcement Priorities Prevent distribution of marijuana to minors Prevent marijuana revenue from funding criminal enterprises, gangs or cartels Prevent marijuana from moving out of states where it is legal Prevent use of state-legal marijuana sales as a cover for illegal activity Prevent violence and use of firearms in growing or distributing marijuana Prevent drugged driving or exacerbation of other adverse public health consequences associated with marijuana use Prevent growing marijuana on public lands Prevent marijuana possession or use on federal property
The Sessions Memorandum Bad people smoke weed!
The Sessions Memorandum Prosecute as you please!
Banking Marijuana Money Banking Guidelines Banks could face government seizure by the Federal Deposit Insurance Corporation (FDIC) if they do business with marijuana businesses. The Financial Crimes Enforcement Network ( FinCEN ) issued guidance to clarify Bank Secrecy Act ( BSA ) expectations for financial institutions seeking to provide services to marijuanarelated businesses.
Banking Marijuana Money On 2/6/18, Treasury Secretary Steven Mnuchin testified at a Senate hearing that the banking document remains in effect while the administration weighs whether to revoke it. Mnuchin won t rescind the prior policy without having an alternate policy in place to address public safety concerns.
Florida: State of Medical Marijuana Laws 2014: Compassionate Medical Cannabis Act Low-THC medical marijuana for patients with cancer or chronic seizures/muscle spasms Must be seen for 90 days by a licensed physician Vertically integrated system for licensed dispensing organizations 2015: Right to Try Act Medical marijuana (low and high THC) for terminally ill patients Two physicians required Patients allowed access to 45 day supply
Florida: State of Medical Marijuana Laws 2016: Amendment 2 Makes use of medical marijuana legal Expands definition of qualifying medical conditions Establishes Medical Marijuana Treatment Centers (MMTCs)
Implementation of Amendment 2 Dispensing Organizations are now referred to as Medical Marijuana Treatment Centers (MMTCs) All existing DOs are grandfathered in By October 3, 2017, DOH was supposed to issue 10 new MMTC licenses $500-$1M can be spent on application preparation alone No application date released When the Registry hits 100,00 active patients, DOH may license 4 new MMTCs ( contingent licensees )
DOH: Do Your Job! On 1/31/18, the House froze $2.1 million in salary and expenses at DOH for failing to respond to concerns raised by the Joint Administrative Procedures Committee over a trio of emergency rules relating to medical marijuana. On 2/5/18 JAPC blasted DOH (mostly Christian Bax) for their flagrant disregard of requested rule clarifications
Implementation of Amendment 2 Qualifying Conditions MMTCs can dispense up to a 70-day supply to a patient with the following qualifying medical conditions: Cancer, epilepsy, glaucoma, HIV, AIDS, PTSD, ALS, Crohn s, Parkinson s & MS A terminal condition diagnosed by a physician other than the qualified physician issuing the physician certification Chronic nonmalignant pain Qualified physician must evaluate an existing qualified patient at least once every 30 weeks before issuing a new physician certification
Implementation of Amendment 2 Delivery Devices and Routes of Administration: Vaping allowed Edibles allowed No smoking No flower sales, except if the flower is sealed in a tamper-proof container
Implementation of Amendment 2 Edibles A MMTC producing edibles must hold a permit to operate as a food establishment pursuant to the Florida Food Safety Act Edibles have limits on the mg of THC permitted Edibles Can t: be attractive to kids be in the shape of people, cartoons or animals be manufactured in a form that bears any reasonable resemblance to products available for consumption as commercially available candy contain any color additives
Edibles that are NOT permitted
Implementation of Amendment 2 Use of medical marijuana is prohibited: On any form of public transportation, except for low-thc marijuana. In any public place, except for low-thc marijuana. In a qualified patient s place of employment, except when permitted by his or her employer. In a state or county correctional institution. On the grounds of a preschool, primary school, or secondary school, except as provided in Florida Statutes Section 1006.062. In a school bus, a vehicle, an aircraft, or a motorboat, except for low-thc marijuana.
Implementation of Amendment 2 Dispensaries MMTCs are capped at 25 dispensaries. When the Registry hits 100,000 patients, MMTCs will be allowed 5 more dispensaries. MMTCs are geographically limited in the number of dispensaries they open in the 5 regions of the state (NW, NE, Central, SW, & SE) based on population. DOH sets the maximum number per region. MMTCs can buy or sell dispensary slots. Dispensary limitation expires 4/20
Implementation of Amendment 2 Preemption of Local Governments Regulation of any MMTC facility is preempted to the state, except as follows: Cultivating, processing or dispensing facilities cannot be located within 500 feet of a school (public or private, elementary/middle/secondary) Counties or cities can: Ban dispensaries OR Allow and regulate the same as pharmacies
3 Boys Farm CHT Medical GrowHealthy Keith St. Germain Knox Medical Loop s Nursery Modern Health Concepts Plants of Ruskin Sunbulb Company Surterra Therapeutics The Green Solution Treadwell Nursery Trulieve Florida s Licensed MMTCs
The Growth of Medical Marijuana New Frontier Data released a 1/8/18 study that legalizing marijuana nationwide would create at least $132 billion in tax revenue and more than a million new jobs across the US in the next decade. Nationwide sales could hit $25 billion in 2020, and $30 billion in 2021 By 2020, Florida could comprise about 14% of the nation s market Sales could near $2B by 2020 Impacts to commercial real estate for warehouse, industrial and retail spaces will be different in Florida than out west
Impacts on Standard Lease Provisions Standard Default Provisions Prohibited/Permitted Uses Rent Payments Landlord/Tenant Improvements Early Termination Rights Indemnification Arbitration Clauses
Knox Medical One of the licensed MMTCs in Florida
Medical Marijuana Dispensaries: Myth marijuana & Controlled Substances Practice Group
Medical Marijuana Dispensaries: Reality marijuana & Controlled Substances Practice Group
First Dispensary in Orlando: 1901 N Orange Avenue marijuana & Controlled Substances Practice Group
Medical Marijuana Grow Operations: Myth marijuana & Controlled Substances Practice Group
Medical Marijuana Grow Operations: Reality marijuana & Controlled Substances Practice Group
Medical marijuana Products: Myth marijuana & Controlled Substances Practice Group
Knox Medical s Products: Reality marijuana & Controlled Substances Practice Group
Cultivation Facility Industrial space, nursery, or raw land for new construction Access to quality water supply and ample power supply Area for expansion
Processing Laboratory Laboratory space for refining and analytical testing
Processing Laboratory Analytical testing Analysis conducted in every step of the operation (harvesting, decarboxylation, extraction, dilutions, etc.) Testing for terpenes, residual solvents, pesticides, microbiological elements, etc. Comprehensive testing for chemicals exceeding the requirements from the State
Security
Questions? Tara L. Tedrow Land Use Attorney & Chair of the Cannabis and Controlled Substances Group Lowndes, Drosdick, Doster, Kantor & Reed, P.A. Tara.Tedrow@lowndes-law.com 407-418-6361 Orlando, FL LOCAL ROOTS. BROAD REACH. SM