Duane Morris attorney Justin Stern provided an update on Florida cannabis legislation during the “Cannabis 204: The Roundup of State Cannabis Legislation” webinar.
The full video replay of the webinar is also available.
On May 3, 2019, the Florida legislature passed SB 1020, creating the state hemp program and authorizing the Florida Department of Agriculture and Consumer Services (FDACS) to enact regulations to govern the program. The bill, first filed in the Florida Senate on February 13, 2019, passed with overwhelming support; the final version passed by a margin of 39-0 in the Senate after passing 112-1 in the House. Governor Ron DeSantis has until May 18, 2019, to veto the bill or it will automatically become law.
“The historic vote,” according to FDACS Commissioner Nicole Fried, is in response to the federal 2018 Farm Bill, which “removed the prohibitions on industrial hemp in place since 1937 and authorized states to create hemp programs.” Id. If SB 1020 becomes law, it will fundamentally alter the treatment of hemp and hemp extracts, including cannabidiol (CBD) products, under Florida law.
As we get ready to stick a fork in 2017, the speculation has begun as to which US states might consider legalizing full adult use of cannabis next year. Many are betting on these five: Arizona, Florida, Michigan, Missouri and Nebraska. And of course New Jersey is expected to legalize adult use under new Governor-elect Phil Murphy. Certainly an interesting mix! Some don’t even have legal medical cannabis yet and would try to do both at the same time. Of these one would think Arizona, NJ and Florida, particular tourist destinations already, could really benefit from legalization.
Why does this matter? For several reasons. First, the steamroller that is the state legalization and growing public acceptance of adult use of cannabis is clearly strengthening. Second, knowing which states may be next creates business opportunities. For example, real estate speculators can buy up locations that might be useful for growing, processing or selling cannabis. In the absence of federal trademark registration being available, seeking state trademarks on potential brands in these upcoming locations also could be beneficial. Others like technology providers are working to ensure that states’ regulatory schemes are designed to accommodate their products.
We will learn shortly whether the Rohrabacher-Blumenauer amendment, preventing the spending of federal enforcement dollars against state legal medical cannabis businesses, will survive in the next budget bill. Some are challenging its renewal, but a strong bi-partisan effort to retain it has been building as well. As more states look to legalize cannabis, one hopes that the Feds will continue their prior mostly hands off approach from a regulatory perspective, despite the recent threatening tone of the Attorney General Jeff Sessions.