Page 33 - SF HOSPITAL NEWS NOVEMBER 2020

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Back Cover Story: Florigrown, Again

Continued from page 36
present law. The department argued that
unconstitutional in Florida. A special existing restrictions were permitted
law favors a particular category of (usu- because the only special treatment for
ally) businesses unfairly. any company was a “grandfather clause”
A factual reminder: After our ballot for the licenses granted after 2014 and
initiative was approved by over 70% of those applicants with pending suits.
voters, Florida granted two dozen win- None, equally, have been granted since.
ning tickets for lucky companies to oper- Florigrown argued that this was a sim-
ate cannabis businesses in Florida. The ple “statutory give-away” which created
existing criteria would allow for any distinct treatment, which usurps any real
number of operators. While other com- opportunity to any company not already
panies meet the criteria for new licenses, possessing a license from obtaining one.
the state has not issued any new licenses. Clearly a “special”, not a “general” law.
To date, 22 licenses have been granted. Florigrown, like many companies, paid
Only a dozen of those are in operation. the application fee and was put on a wait
The licenses can be sold to qualified list, not granted a license to operate an
companies on a waiting list. Those MMTC.
licenses have sold for tens of millions of I predicted that Florigrown was
dollars. already going to win based on a different
Questions were asked about how the issue (“monopolies are un-American”). I
government could defend granting was fascinated when the court asked for
licenses, solely, to businesses which had the additional briefing. The “special law”
already been approved under the 2014 issue seems like a “layup” for
low-thc amendment or which had law- Florigrown. How can this law not be a
suits pending against the state, which “special” law which gives special privi-
were settled with a grant of a license. It’s lege to lucky ticket holders? The state’s
true, the only licensees allowed to oper- argument seems weak to me, because
ate were determined when the state while “classes” are formed all the time
passed the law in 2017, and every other (such as plumbers, lawyers or any other
qualified applicant is on a “wait list” licensed trade), none of those licenses
waiting for the state to change its law or are granted to qualified applicants who
its will. Florigrown sued because it was are then unable to operate because a spe-
placed on the wait list. cific number of their trade had been met.
The Supreme Court wanted to hear Last month, I wrote that 2022 is likely
more about the “special law” issue, to see an adult-use referendum pass. I
which was not primary in the first round. opine that Florigrown will have an
Florida deems “special laws” unconstitu- MMTC license prior to that ballot initia-
tional. “Special” laws benefit specific tive reaching the voters, that the system
entities, and do not allow the same ben- in place will be found unconstitutional,
efit for all similarly situated. The heart of and that adult use will be legal after the
the issue is whether the vertical integra- 2022 vote. Because, after all, we are a
tion statute grant rights to particular country which represents freedom and
companies which are not afforded to opportunity for all.
companies, generally. Florida argued that Awarding monopolies and preventing
the law allows for “classes” of businesses competition to the selected few provides
to get particular treatment, just not spe- no freedom or opportunity for those
cific businesses. The law is not a “spe- wishing to enter the industry. “Special
cial” law, but a “general” law, uniformly law” likely, but one way or another, the
applied, was the argument. Supreme Court is likely to rule that the
Florigrown responded that this is system we are just starting to get used to
clearly a “special” law. Those who auto- is unconstitutional.
matically were given licenses by the
department before the new criteria were Michael Liss, Esq. can be reached at
adopted, and all other companies, which ml@integritycounselpa.com or
in reality will never operate under the
(561) 981-2507, located in Boca Raton.

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