You’re reading this week’s edition of the New Cannabis Ventures weekly newsletter, which we have been publishing since October 2015. The newsletter includes unique insight to help our readers stay ahead of the curve as well as links to the week’s most important news. We post this and all of the newsletters on our website here.

Friends,

Cannabis stocks are rallying hard in 2024. The New Cannabis Ventures Global Cannabis Stock Index is up by 33.5% so far. Of course, a major development is playing out: rescheduling. If cannabis is moved from Schedule 1 to Schedule 3, then 280E taxation will end, which will be very good for the American cannabis companies that have been paying it.

The American cannabis companies are doing well, but they aren’t the only part of the market firing forward. The NCV American Cannabis Operator Index has gained 35.1%, only slightly higher than the Global Cannabis Stock Index.  As we discussed last week, certain Canadian LPs that are in the GCSI are doing so much better than the index and the American operators. Cannabis investors should avoid certain Canadian LPs.

While rescheduling looks like it will take place, which should be good for the MSOs due to tax reduction and improved cash flow, we remind readers that there may be some things that will not be so positive. We have a fairly large exposure to MSOs in the model portfolio at 420 Investor. but we are avoiding some of the largest ones. The five Tier 1 names are up dramatically in 2024 and over the past year, especially Trulieve:

Each of these stocks has outperformed the Global Cannabis Stock Index, up 39.2%, over the past year. A year ago, Trulieve was very out of favor. Going back to the end of 2022, it is up a lot, but it is not the leader:

Since the end of 2022, the Global Cannabis Stock Index has gained 11.5%, so these large MSOs are all up by at least twice as much. The two leaders among the five largest MSOs are both big in Florida, which is a large medical-cannabis state that is vertically-integrated. Trulieve has 136 dispensaries, while Verano operates 75. The two of them have about 1/3 of the 635 open dispensaries in the state.

Investors have been very excited by the chances of the voters in Florida approving a ballot initiative in November that would allow adult-use legalization. The Supreme Court of Florida gave the go-ahead in early April, overruling a challenge. The MSOs in the state joined Trulieve in funding support for the amendment, which will require 60% of voters approving it to pass.

In addition to Trulieve and Verano, AYR Wellness and Curaleaf are big operators in the Florida medical cannabis market, with 125 stores between the two of them. The four of these, then, have 336 dispensaries in Florida, which is 53% of all dispensaries in the state. AYR Wellness, which is up 59.2% in 2024, has gained 139.2% since the end of 2022, ahead of the five largest MSOs.

We began writing about the Florida medical market recently. The state provides an update each week with unit volumes for all of its participants. Typically, these reports are released on Friday for the week ending on Thursday. The past report, though, was late to actually hit the website. Instead of last Friday, it was published on the OMMU website on Tuesday. The report showed a new all-time low in growth of patients, which expanded just 7.3% from a year ago. When we updated the BDSA data earlier this month, we shared that Florida revenue was up only 1.8% from a year earlier in March. This was a record low too.

It’s not clear that Florida voters will approve adult-use legalization in November. If they don’t, we think the market will not be happy with a mature medical market that is slowing and competitive. If they do, it’s not yet clear that the four largest operators will win going forward. Investors should be careful in our view with the big Florida operators.

New Cannabis Ventures publishes curated articles as well as exclusive news. Here is some of the most important content from this week:

Exclusives

Financial Reports

AYR Wellness Q1 Revenue Flat From a Year Ago

Cresco Labs Q1 Revenue Falls 5%

To get real-time updates download our free mobile app for Android or Apple devices, like our Facebook page, or follow Alan on Twitter. Share and discover industry news with like-minded people on the largest cannabis investor and entrepreneur group on LinkedIn.

Use the suite of professionally managed NCV Cannabis Stock Indices to monitor the performance of publicly-traded cannabis companies within the day or over longer time-frames. In addition to the comprehensive Global Cannabis Stock Index, we offer the Canadian Cannabis LP Index, the American Cannabis Operator Index and the Ancillary Cannabis Index.

View the Public Cannabis Company Revenue & Income Tracker, which ranks the top revenue producing cannabis stocks.

Stay on top of some of the most important communications from public companies by viewing upcoming cannabis investor earnings conference calls.

Discover upcoming new listings with the curated Cannabis Stock IPOs and New Issues Tracker.

Sincerely,

Alan

Based in Houston, Alan leverages his experience as founder of online community 420 Investor, the first and still largest due diligence platform focused on the publicly-traded stocks in the cannabis industry. With his extensive network in the cannabis community, Alan continues to find new ways to connect the industry and facilitate its sustainable growth. At New Cannabis Ventures, he is responsible for content development and strategic alliances. Before shifting his focus to the cannabis industry in early 2013, Alan, who began his career on Wall Street in 1986, worked as an independent research analyst following over two decades in research and portfolio management. A prolific writer, with over 650 articles published since 2007 at Seeking Alpha, where he has 70,000 followers, Alan is a frequent speaker at industry conferences and a frequent source to the media, including the NY Times, the Wall Street Journal, Fox Business, and Bloomberg TV. Contact Alan: Twitter | Facebook | LinkedIn | Email

The campaign to legalize cannabis in Florida is alive and well, as the state’s Supreme Court ruled earlier this month that voters will be able to decide the next chapter of cannabis reform on this year’s November ballot.

With an already bustling medical market, Florida’s potential move into the recreational cannabis space has been highly anticipated since the Sunshine State first moved to introduce medical reform in 2016. Cannabis businesses also have a hefty investment in the reform measure, with Trulieve contributing more than $40 million to the campaign, alongside an additional several million dollars from a handful of other medical cannabis treatment centers.

While the momentum ahead of Election Day feels significant, it’s possible that there may not be enough support to pass the measure under the state Constitution — at least when it comes to the results of a new poll.

The Latest Poll on Florida Adult-Use Cannabis Legalization

In Florida, measures must gain 60% support in order to pass. A new USA Today/Ipsos survey suggests that a majority of registered Florida voters, 56%, support the measure — along with 49% of Florida adults overall. Forty percent said that they would vote against it, and just 4% said that they were unsure.

Democrats and independents were most supportive of the measure (69% and 63%, respectively), while 39% of registered Republican voters  said they would vote in favor of the measure. The survey also found that support varied by region, with those in central Florida more likely to say they are in favor of recreational cannabis legalization than those in north or south Florida (54%, 49% and 38%, respectively).

While there are no differences in self-reported plans to vote for recreational cannabis legalization by gender or age, white Floridians were more likely than Hispanic Floridians to say they would vote in favor of recreational cannabis legalization later this year (55% vs. 32%, respectively).

The poll was conducted April 5-7 and included 369 Republicans, 264 Democrats and 316 independents.

Various Poll Results Point to Uncertain Outcomes

The poll is notable as the first to come out following the Florida Supreme Court’s decision to clear the measure for the ballot and reject the state attorney general’s constitutional challenge.

It’s also the most recent survey among a slew of similar recent efforts to gauge Floridian support of recreational cannabis, with varying results.

A November 2023 poll from the University of North Florida found that 67% of respondents said they would vote yes on a constitutional amendment to allow adults in Florida to purchase and possess small amounts of cannabis for personal use. It also notes that 70% of respondents supported recreational cannabis in Florida as of Spring 2023 along with 76% showing support in Spring 2022.

The most recent poll notably gave respondents the specifics of the proposed amendment, rather than simply asking if respondents supported or opposed legalization of recreational cannabis.

The measure, Amendment 3, would allow those over the age of 21 to possess up to three ounces of cannabis and five grams of cannabis concentrates. It would also allow existing medical cannabis dispensaries authorization to sell cannabis for adult use. The initiative is sponsored by Smart and Safe Florida.

The poll results represent some of the gaps Smart and Safe Florida must close to see legal recreational cannabis in Florida as the organization enters its next phase of outreach and education.

That said, Florida voters approved legal medical cannabis in 2016 with a vote of 71% to 29%. With more than six months until Election Day, it’s anyone’s guess how the cards will ultimately  fall.

Democratic strategists see opportunities to attract Florida voters to the party’s candidates now that constitutional amendment initiatives to legalize recreational marijuana and guarantee broader abortion rights have qualified for the ballot. The Florida Supreme Court announced on April 1 that Amendment 3 to legalize adult-use cannabis and Amendment 4 to protect abortion rights had fulfilled state requirements and would appear on the ballot for this fall’s presidential general election.

If passed, Amendment 3 would legalize cannabis for adults aged 21 and older and allow Florida’s existing licensed medical marijuana retailers to begin serving all adult consumers. Amendment 4 says that “no law shall prohibit, penalize, delay, or restrict abortion before viability or when necessary to protect the patient’s health, as determined by the patient’s healthcare provider,” with an exception for laws that require parental notification when minors get abortions. If passed, the amendment would effectively nullify a separate Supreme Court ruling issued last week that upheld the state’s 15-week limit on abortion and set the stage for approval of a six-week limit.

With 30 electoral votes, both the Republican and Democratic presidential campaigns eye Florida as a significant step on the path to victory in November. Democratic strategists see the addition of Amendment 3 and Amendment 4 to the November ballot as an opportunity to attract young voters, who tend to support abortion rights and cannabis policy reform.

“Both abortion and marijuana legalization are highly resonate with young people, which is a key demographic that the president has got to turn out,” Joseph Geevarghese, executive director of the grassroots progressive group Our Revolution, told The Hill. 

Biden Campaign Eyes Florida

On Monday, the Biden campaign released a memo indicating it would invest heavily in Trump’s home state of Florida, saying the policies of the former president and the Republican Party are “making Floridians’ lives worse.” Four years ago, Trump won the Sunshine State with 51% of the vote, while Biden took 48% of the vote.

Julie Chávez Rodríguez, the campaign manager for Biden’s reelection bid, said that the campaign is running ads in Florida targeting young voters and other demographic groups including Black and Hispanic voters. 

“Make no mistake: Florida is not an easy state to win, but it is a winnable one for President Biden, especially given Trump’s weak, cash-strapped campaign, and serious vulnerabilities within his coalition,” she said in the memo.

To win the state, the Biden campaign will have to have a strong showing from Democratic-leaning voting blocks including Black voters and young adults. Nikki Fried, chair of the Florida Democratic Party and an ally of the medical cannabis industry while serving as the state’s commissioner of agriculture, said she has already observed increased enthusiasm among young voters since the court rulings last week.

“Just based purely on watching social media in the last 24 hours, the youth vote is excited about the opportunity to be voting on cannabis and abortion in November,” she said.

Michael Starr Hopkins has experience running Democratic campaigns in Florida, serving as senior advisor for former Congressman Charlie Crist’s unsuccessful bid for governor of the state in 2022. As the country gears up for the November vote, the Democratic strategist sees the views of many Republicans as incompatible with those of most younger voters.

“Abortion and marijuana on the ballot could be an electoral earthquake for the youth vote in Florida. The GOP’s anti-choice, anti-cannabis stance isn’t just out of touch, it’s straight out of the stone age,” said Starr Hopkins. “Having these two hot-button issues front and center is going to turbocharge youth turnout, which is never a good thing for Republicans.”

Democrats See Success in Ohio and Alabama

Democrats see similarities between the situation developing in Florida this year with the 2023 race in Ohio. The ballot for that election included an initiative to legalize recreational marijuana and an amendment to enshrine the “fundamental right to reproductive freedom” with “reasonable limits” in the Ohio Constitution. Propelled in part by a strong turnout of young voters, both ballot measures passed, handing Republican party leaders two losses in one fell swoop.

In Alabama late last month, Democrat Marilyn Lands won a special election for a state House seat after leaning into abortion rights and protecting in vitro fertilization (IVF) as issues for her campaign. Only weeks before, the Alabama Supreme Court ruled that frozen human embryos are legally people, leading to a halt of IVF services in the state, at least temporarily.

“Ballot initiatives can be game changing for campaigns. Just last week we saw a Democrat win a state house seat in Alabama focused on IVF, showing the power of the issue in a deep red state,” said Democratic strategist Andrea Riccio, co-founder of Velocity Partners. “With recreational marijuana use and abortion access on the ballot, the Biden campaign has a real opportunity to activate young voters and turn Florida blue.”

Currently, Trump has a 0.8 percentage point lead over Biden overall, according to The Hill and Decision Desk HQ’s aggregation of polls. With weed and abortion on the ballot in Florida, however, Democrats believe they can overcome the deficit in the state, securing its 30 electoral votes for Biden.

“If the GOP keeps underestimating the power of pissed-off young people, they’re in for a rude awakening at the ballot box. Florida could slip from their grasp as cash-strapped Republicans struggle to counter the surge of energized young voters,” said Starr Hopkins. “It’s a perfect storm that could spell disaster for the GOP’s chances in the Sunshine State.”

The Florida Supreme Court recently decided in a 5-2 ruling that it will not be preventing an adult-use cannabis initiative from appearing on this year’s ballot. Later this year, voters will voice their opinion on “Florida Amendment 3, Marijuana Legalization Initiative,” where a “yes” supports legalizing adult-use cannabis and permitting possession of up to three ounces, and a “no” opposes adult-use legalization and all it would pertain.

This decision is the result of Attorney General Ashley Moody’s challenge of the initiative’s ballot language in summer 2023, arguing that the measure is misleading and doesn’t inform voters about federal prohibition. Moody also challenged a ballot initiative from 2022, to which the Supreme Court ultimately decided it was invalid.

The current initiative that will now be put in front of voters in November is backed by the advocacy group Smart & Safe Florida, which according to Politico, collected more than 1 million signatures to get the initiative onto the ballot. 

According to a written opinion from Justice Jamie Grosshans, the language doesn’t violate the single-subject rule, and is not too confusing for voters. “Selling and possessing marijuana appear, for better or worse, directly connected, and we cannot say that an amendment addressing both components violates the single-subject requirement,” the opinion stated. “We do not believe the summary would confuse a voter into thinking that the legislature is required to authorize additional licenses. It clearly states that the amendment legalizes adult personal possession and use of marijuana as a matter of Florida law.” Grosshans also addressed Moody’s claim that the amendment would require legislative decision in order to create adult-use dispensary licenses.

Smart & Safe Florida published a post on social media about the recent court ruling. “The court’s decision echoes our commitment to transparent ballot language and the right for voters to decide on vital issues. Here’s to progress and paving the path towards safer cannabis consumption for adults! #Yeson3”

A majority of the funds behind Smart & Safe Florida’s initiative came from the vertically integrated multistate operator, Trulieve, which granted more than $39 million to the effort. Trulieve is one of the largest cannabis companies in Florida, owning 131 of 618 medical cannabis dispensaries currently licensed in the state.

“We are thankful that the Court has correctly ruled the ballot initiative and summary language meets the standards for single subject and clarity. We look forward to supporting this campaign as it heads to the ballot this fall,” said Trulieve CEO Kim Rivers. “Trulieve was the primary financial supporter of the initiative during the signature gathering effort and subsequent court challenge and is a proud supporter, alongside a strong coalition of other companies, of the next important phase to educate Floridians on the amendment and secure a yes vote on Amendment 3 this November.”

In order for the initiative to pass this November, it will need 60% of voter approval, which would allow the state’s currently licensed medical cannabis companies to sell to any adult over 21.

Gov. Ron DeSantis took office in 2019, and shortly thereafter asked the legislature to repeal a ban on cannabis flower. Advocates and patients praised his support, and since then he has acted on that support to create strict rules to prevent medical cannabis advertisements in order to protect children.

However, DeSantis has made it clear that he does not support adult-use cannabis, calling it a “real problem” and referring to the plant as having a “stench.” He campaigned for president in 2023, and made claims that cannabis could be laced with fentanyl, and saying that he would not legalize adult-use cannabis if he were elected president. “Yeah, I would not legalize,” DeSantis said. “I think what’s happened is this stuff is very potent now. I think it’s a real, real problem and I think it’s a lot different than stuff that people were using 30 or 40 years ago. And I think when kids get on that, I think it causes a lot of problems. And then, of course, you know, they can throw fentanyl in any of this stuff now.”

Medical cannabis was legalized in Florida in 2016 with a 71.3% vote, and as of 2023, Florida had 871,000 registered medical cannabis patients, which is the highest number of patients in the country. According to Politico, the medical cannabis legalization effort was funded in majority by “Pot Daddy” John Morgan, who spent $7 million to push the initiative forward.

As of April 2, the Florida Supreme Court permitted a six-week abortion ban to take effect (which was signed by DeSantis in 2023). However, the court also approved a constitutional amendment to appear on the ballot that will ask voters to choose to decide on “Florida Amendment 4, Right to Abortion Initiative.” A “yes” vote would establish constitutional rights to abortion before fetal viability, while a “no” vote would oppose that constitutional right. “We’re thrilled the Court has let the voters decide the fate of abortion access in Florida,” said Laura Goodhue, Florida Alliance of Planned Parenthood Affiliates Executive Director. “This comes at the same time they have allowed a six-week ban to go into effect, making this initiative more important than ever.”

A Republican-backed proposal in Florida to impose limits on THC potency in marijuana appears to have flamed out in the state’s legislative session.

GOP lawmakers there introduced two measures –– House Bill 1269 and Senate Bill 7050 –– that would “sought to preemptively ban adults’ access to cannabis flower products containing more than 30 percent THC,” according to NORML.

Recreational cannabis for adults remains illegal in Florida, although voters in the Sunshine State could have the opportunity to change that come November. 

The Florida Supreme Court is set to hand down a ruling on whether or not a proposed amendment to legalize cannabis for adults aged 21 and older in the state will qualify for this year’s ballot.

But with the legislative session winding down for the year, the proposals appear all but dead. 

According to local outlet Florida Politics, a key legislative committee “never found space on a Senate Fiscal Policy agenda” for the THC cap proposals. And with the committee’s final meeting slated for Tuesday, that means “the THC caps appear to have burned out before advancing to the Senate floor,” the outlet said.

Advocates of the would-be ballot proposal celebrated the death of the measures.

“We are pleased the voters may have an opportunity to vote on adult use prior to potential implementation language being decided on,” said Steve Vancore, a spokesperson for  medical cannabis provider Trulieve, as quoted by Florida Politics.

NORML was particularly outspoken in its opposition to the THC caps. In a letter sent to Florida lawmakers more than 2,000 times during this legislative session, the group urged the legislature to not “stifle the adult-use cannabis market before Floridians have even had a chance to vote for it.” 

“Prohibiting adults from accessing these products from state-licensed retailers will not eliminate consumers’ demand for them. Rather, it will encourage consumers to seek out high-THC products in the unregulated market. It will also move the production of these products exclusively underground. This undermines the primary goal of legalization, which is to provide patients with safe, above-ground access to lab-tested products of known purity, potency, and quality.”

NORML’s Deputy Director Paul Armentano articulated the group’s opposition to THC caps in a letter to the editor published this month in the Boston Globe.

 “Unlike alcohol, THC is incapable of causing lethal overdose in humans. This fact is acknowledged by the US Drug Enforcement Administration, which has concluded, ‘No deaths from overdose of marijuana have been reported.’ Typically, when consumers encounter higher-potency products, they consume lesser quantities of them. … Rather than banning these products, regulators should provide the public with better safety information about the effects of more potent products, and they should continue to ensure that legal products do not get diverted to the youth market,” Armentano wrote.

Another Florida-based outlet, The Spacecoast Rocket, provided more background on the legislative effort to cap THC:

“The legislative journey for THC cap proposals began with the introduction of SB 7050 in the Senate, spearheaded by the Senate Health Policy Committee. The bill aimed to establish strict limits on the tetrahydrocannabinol (THC) content in cannabis products available in the state. THC is the primary psychoactive compound in marijuana, responsible for the high that users experience. Proponents of the bill argued that capping THC levels would help mitigate potential health risks associated with high-potency marijuana, particularly among younger users. Despite these concerns, SB 7050 encountered significant hurdles in the legislative process. The bill’s progress was halted as it failed to secure a spot on the agenda of the Senate Fiscal Policy Committee. With the legislative session’s committee meetings drawing to a close and no further meetings anticipated, the bill’s advancement has been effectively suspended.”

The Florida Supreme Court has until April 1 to make a ruling on the proposed adult-use marijuana amendment. Both sides made oral arguments before the court last November. 

The proposal is facing a challenge from state Attorney General Ashley Moody, who filed a lawsuit to  in May 2023 to block the marijuana amendment.

USA Today Network reported that Moody argued “that the proposed ballot language was not clear and didn’t stick to a single subject requirement.” 

“Attorneys for the state expanded on that before the Supreme Court, saying the wording didn’t make it clear that marijuana was still illegal under federal law and that the amendment would empower the small cartel that currently supplies medical marijuana,” the outlet said. “Moody previously has said the measure would give an unfair advantage to the state’s largest marijuana purveyor, Trulieve, which contributed all but 124 dollars of the $39 million raised to promote the amendment.”

USA Today Network noted that the Supreme Court justices “appeared to favor the amendment” during oral arguments. Florida Gov. Ron DeSantis predicted last month that the court will approve the amendment, clearing the way for it to make the ballot in November. 

An Uber driver in Florida faces felony drug charges after he allegedly tried to sell psilocybin mushrooms and LSD to his passengers. A series of transactions climbed up to 200 hits of LSD on gel tabs and a quarter-pound of shrooms in one transaction.

If you’re going to offer shrooms and LSD to Uber passengers, you’d better make sure your passengers aren’t narcotics cops—this Uber driver learned that the hard way. 

Some of his “passengers” ended up being narcotics investigators visiting Miramar Beach, Florida for the Florida Narcotics Officers’ Association Annual Conference last August in 2023, according to authorities. How’s that for bad luck? According to the Walton County Sheriff’s Office (WCSO), the investigators who rode the Uber are from the Citrus County Sheriff’s Office (CCSO).

John Alcott, 52, of Crestview, Florida, arrived to pick up his riders, and when the CCSO investigators entered the vehicle, they said it reeked of pot smoke. Alcott whipped open his glove box to show them all the shrooms he had in his inventory. (Uber drivers are not employees of Uber; they are independent contractors as Uber’s key to success.)

The off-duty investigators decided to play along, posing as psychedelic customers.

WCSO reports that Alcott sold the CCSO investigators 134 grams of psilocybin mushrooms, 10 psilocybin mushroom microdose capsules, and 12 doses of LSD on blue gel tabs for $1,000. During the purchase, Alcott told detectives he would be willing to run a mail-order supply as well. WCSO also posted Alcott’s mugshot and several photos of the LSD and psilocybin mushrooms.

They’ve been processing the investigation ever since, and upped the ante with larger quantities to pin down the Uber driver for bigger charges. The sting operation eventually involved WCSO Narcotics Investigators, the Crestview Police Department, and the Okaloosa County Sheriff’s Officers, who set up surveillance on Alcott’s residence in Crestview, Florida.

On Feb. 21, WCSO narcotics investigators sent the undercover CCSO detective, who was a passenger-turned-drug buyer, to reach out to Alcott to tell him they were in the area and wanted to buy over a quarter-pound of shrooms and 200 doses of blue gel tab LSD hits in exchange for $5,000.

“While these types of cases aren’t the primary focus of our VICE/Narcotics investigations, this one kind of came to us,” said Sheriff Michael Adkinson. “He obviously makes it a habit to sell while driving an Uber and that’s pretty alarming considering how teenagers and young adults frequently use driving services in the area.”

The investigators are taking it seriously and Alcott faces numerous felony charges. Alcott was arrested and booked into the Walton County Jail on two counts of selling a hallucinogen, trafficking in LSD, possession of a hallucinogen with intent to distribute, possession of drug paraphernalia, and two counts of using a two-way communication device in the commission of a felony. He was issued a $15,000 bond, posted it, and walked free the following day.

Uber and DoorDash Drivers Caught With Weed

One DoorDash customer received more than he bargained for when he placed an order of food—finding an unwanted bag of weed in his order, and decided to complain about it. The actions of the driver led to his termination as a Dasher with the company.

A Columbus, Ohio man, who wishes to remain anonymous, said he ordered food through DoorDash on Aug. 9, 2023, and complained that the bag of weed made him feel “scared.”

“I was scared at first but then again, I wasn’t very surprised,” the man who ordered food from DoorDash told ABC 6.

He provided a photo of his bag of food where he found a fork and a bag filled with cannabis. The photo shows a baggie adorned with alien heads holding what appears to be about a gram of weed. “Did this start with the driver?” he said. “Or did this start in the restaurant that I ordered this from?”

Others choose not to snitch on their DoorDash or Uber drivers. In 2016, comedian and talk show host Arsenio Hall was in Washington, D.C. to host the 2016 BET Honors, but soon after the star arrived into town, the show was canceled due to a blizzard. While in Washington D.C., Hall tweeted about the “overpowering” smell of cannabis in his Uber car. It didn’t bother him as much as other riders, however.

Hall was in Washington, D.C. to host the 2016 BET Honors, but soon after the star arrived into town, the show was canceled due to Saturday’s blizzard. While in our nation’s pot-legal capital, Hall tweeted about the “overpowering” smell of cannabis in his Uber car. 

His tweet was immediately responded to by Uber’s customer support account, calling the situation “completely unacceptable” and asking Hall to snitch on his driver. But Hall refused to narc, tweeting back at Uber that it was “all good y’all.” 

A Florida legislative subcommittee on Monday advanced a bill to restrict psychoactive hemp-derived cannabinoids such as Delta 8 THC and Delta 10. The legislation, House Bill 1613, was advanced by the House Agriculture and Natural Resources Appropriations Subcommittee by a vote of 8-4. 

The 2018 Farm Bill legalized hemp and hemp products at the federal level, leading to a surge in new hemp businesses nationwide. Under the legislation, cannabis with no more than 0.3% Delta 9 THC (the compound largely responsible for the “high” experienced when smoking marijuana) on a dry weight basis is considered legal hemp under federal law.

Legalization Spawns New Hemp Products

The growth of the hemp industry has led to novel new products, including those containing psychoactive cannabinoids such as Delta 8 and Delta 10 THC. Such products are widely available in easily accessible locations including convenience stores, gas stations and smoke shops throughout the country, leading lawmakers in many states to take steps to regulate hemp-derived cannabinoids.

The legislation advanced on Monday would ban Delta 8, Delta 10 and other hemp-derived cannabinoids including hexahydrocannabinol (HHC), tetrahydrocannabinol acetate (THC-O), tetrahydrocannabiphorol (THC-P), and tetrahydrocannabivarin (THCv). 

“This bill is not designed to criminalize behavior,” Republican State Representative Tommy Gregory, the sponsor of the bill, said in a statement about the legislation cited by local media. “This bill is designed to be a consumer protection tool.”

The bill also redefines hemp to “outline that hemp extract may not exceed 0.3% total delta-9-THC concentration on a wet-weight basis or exceed 2 milligrams per serving and 10 milligrams per container on a wet-weight basis,” according to a report from Florida Politics. The new standard is more restrictive than the 2018 Farm Bill and would essentially ban many products available today, including full-spectrum CBD oils.

Jeff Sharkey, a hemp industry advocate, said the bill would help protect consumers from cannabinoids not naturally found in cannabis, which have not been studied for safety as much as Delta 9 THC and CBD.

“This is an attempt by the Legislature to reign in some of the synthetic products that are out there like under the guise of hemp,” said Sharkey.

Bill Has Vocal Opposition

Other proponents of the hemp industry including some lawmakers and small business owners agree that some regulation of hemp products is appropriate. However, they are concerned that HB 1613 is too restrictive and will harm or even destroy Florida’s hemp businesses, many of which are small, locally-owned enterprises. 

At Monday’s subcommittee hearing for HB 1613, Democratic Representative Hillary Cassel said that if the bill is approved by the legislature and signed into law by Republican Governor Ron DeSantis, it will destroy Florida’s hemp economy.

“You will go to another state,” she said to those in the hemp industry attending the hearing. “And we will find our consumers and Floridians in a position where they will be buying [hemp products] from the black market, buying it off the internet and having no idea what’s contained within that product.”

Michael Pool, who operates Tampa-based hemp retailer Astrobleme, said that the milligram cap in the bill would not only ban the psychoactive products targeted by the legislation. The bill would also affect many non-psychoactive products that people across Florida now use.

“I have products in over 80 stores across the state,” Pool told Florida Phoenix. “Most of those stores are doing $2,000 a month, $3,000 a month, to $4,000 a month in sales of my products. And to just completely remove that would not be to my detriment, but all those others.”

However, the sponsor of the legislation does not believe that HB 1613 will harm the legal hemp industry. Representative Thad Altman, chair of the Agriculture and Natural Resources Appropriations Subcommittee and a fellow Republican, asked Gregory how he thought passage of the bill would impact the state economy. 

“I don’t concede that that actually it’s going to have a negative fiscal impact on businesses or revenue derived from taxes based on those businesses,” Gregory maintained, but did foresee reduced state spending for “providing care for people that overdose when they’re self-medicating using these products that need further regulation.”

Later, Democratic Representative Dianne Hart asked Gregory directly, “Do we think that this may destroy a vital industry in our state?”

“No, I don’t have that concern at all,” Gregory replied. “I don’t think that it’s going to have that impact.”

Glen Sheppard and his wife operate Tallulah, the owner of a chain of smoke shops around Florida. He disputed Gregory’s assertion that the bill would hurt the state’s economy.

“To say that there won’t be any economic impact to the state of Florida, I can tell you that’s totally false,” Sheppard said. “It’s strange that somebody can come stand up here and claim one thing that’s totally, obviously not true at all.”

HB 1613 now heads to the House Infrastructure Strategies Committee. If the legislation is approved there, it will head to the floor for a vote by the full House of Representatives. A companion measure, SB 1698 from Republican Senator Colleen Burton, is expected to receive a vote on the floor of the Florida Senate this week.

Florida Representative Ralph Massullo introduced House Bill 1269 on Jan. 5, which received its first reading on Jan. 9. If passed, the bill would implement limitations on potency in cannabis products specifically if adult-use cannabis is legalized.

The bill proposes strict limitations for smoking products, concentrates, and edibles. “Marijuana for personal use may not have a tetrahydrocannabinol potency, by weight or volume, of greater than 10% for marijuana in a form for smoking or greater than 60% in the final product for all other forms of marijuana, excluding edibles,” the original filed version states. “Edibles for personal use may not contain more than 200 milligrams of tetrahydrocannabinol and a single serving portion of an edible may not exceed 10 milligrams of tetrahydrocannabinol.”

In comparison to other state potency limitations, Massullo’s potency percentages are much lower. Also, the definition of “potency” within the HB-1269 text is complicated, described as “…the relative strength of cannabinoids, and the total amount, in milligrams, of tetrahydrocannabinol as the sum of delta-9-tetrahydrocannabinol, plus 0.877 multiplied by tetrahydrocannabinolic acid, plus delta-8-tetrahydrocannabinol and cannabidiol as the sum of cannabidiol, plus 0.877 multiplied by cannabidiolic acid in the final product dispensed to a patient or caregiver.”

There are a few other proposed bills for the Florida 2024 legislative session. House Bill 1435 would create “Registry Identification Cards” for military veterans. House Bill 1497 would exempt specific applicants from medical cannabis treatment center licenses. Senate Bill 94 proposes reduced penalties for a person possessing 20 grams of cannabis or less for the first three violations. Senate Bill 166 would create protections for medical cannabis patients if they are public employees.

Massullo anticipates that adult-use legalization is right around the corner for Florida, especially with the 2024 ballot later this year. One initiative, Smart & Safe Florida, announced in June 2023 that it had gathered enough signatures to qualify for the ballot this year.

The campaign’s primary funding comes from multistate operation Trulieve. According to a statement by Trulieve CEO Kim Rivers, expressed the company’s dedication to consumers. “Our investment demonstrates our firm belief that Floridians are ready to experience the freedom to use cannabis for personal consumption; a freedom which is currently enjoyed by more than half of America’s adults,” Rivers said. “With over 965,000 validated signatures from nearly every part of our state, it is clear these voters share that belief. We are thrilled the campaign has made this milestone and look forward to seeing this initiative on the ballot next November.”

However, Florida Attorney General Ashley Moody challenged the initiative just after the initiative gathered enough signatures. “We want to restate the fact that the petition language for this measure—which garnered over a million signatures from Florida voters—was drafted very conservatively and with the guidance of this very court,” Smart & Safe Florida stated in October 2023. “We anticipate that the court will stick to its deferential standard of review and will agree that the language strictly adheres to the law and the Florida constitution and will give the voters the opportunity to vote on this subject.”

In November 2023, oral arguments were made by the Florida Supreme Court. In response, Smart & Safe Florida released a statement about the hearing. “We believe that after today’s oral arguments, it is clear that the language was drafted to conform to the roadmap that the Court itself has provided in prior cases,” the organization wrote. “We hope that the Court agrees that the language strictly adheres to the law and will allow the citizens of Florida to exercise their sovereign right to decide whether to amend their constitution.” So far, no more progress has been made on the case, and the future of Smart & Safe Florida’s initiative is uncertain.

According to data provided by the University of North Florida’s Public Opinion Research Lab, 67% of poll participants said they would support adult-use cannabis in Florida, while only 28% said they would vote no, and 5% said they didn’t know, or declined to answer the question.

Recently, a different cannabis-related 2024 ballot initiative that would have allowed medical cannabis patients to grow their own cannabis at home was recently ended. In late December 2023, activists from a group called Wise and Free announced that they had withdrawn the initiative due to not collecting enough signatures. “The legislators keep making it harder for us to pass constitutional amendments so that giant conglomerates and large corporations are able to accomplish what they want, but we’re not,” said advocate Moriah Barnhart.

The initiative required 900,000 signatures, but the group also lacked necessary funding to properly manage the campaign. “When we could foresee being charged for late petitions in the millions, I couldn’t risk being personally accountable for those fees—especially since donations weren’t coming in to match the expenditures, much less additional costs,” Barnhart continued. “Now, billion-dollar companies and conglomerates are the only people who can have a say in Florida law.”

The supporters of a proposed citizen’s initiative that would allow Florida medical marijuana patients to cultivate cannabis at home have ended their efforts to place the measure on the ballot for the 2024 general election. The home cultivation campaign withdrew its initiative petition late last month after failing to collect enough signatures to qualify for the ballot.

Cannabis activist Moriah Barnhart founded the group Wise and Free in December 2022 to put the medical marijuana home cultivation initiative on the ballot. But she says that the process has been made more difficult by new restrictions and fees for proposed ballot initiatives put in place by Republican lawmakers in 2019.

“The legislators keep making it harder for us to pass constitutional amendments so that giant conglomerates and large corporations are able to accomplish what they want, but we’re not,” Barnhart told the Miami New Times.

Campaign Faced Financial Difficulties

Barnhart added that the campaign had difficulties recruiting enough volunteers to help the cause. Additionally, the initiative’s backers were only able to raise about $4,000, not nearly enough to pay the professionals and staff needed to collect and submit the nearly 900,000 signatures needed to place the home cultivation initiative on the ballot. 

With administrative and accounting fees exceeding donations, Wise and Free Florida found itself in debt. Barnhart then made the difficult decision to withdraw the initiative petition, ending the effort for the 2024 election.

“When we could foresee being charged for late petitions in the millions, I couldn’t risk being personally accountable for those fees — especially since donations weren’t coming in to match the expenditures, much less additional costs,” Barnhart said.

“Now, billion-dollar companies and conglomerates are the only people who can have a say in Florida law,” she added.

Barnhart began her cannabis activism after her daughter Dahlia was diagnosed with brain cancer 13 years ago. After being given little chance of survival, Dahlia’s quality of life improved with cannabis medication. Barnhart now says cannabis has kept her daughter alive.

“She started on cannabis about six months into her treatment for aggressive brain cancer and she slept through the night for the first time in her entire life that first night,” remembered Barnhart, who co-founded the nonprofit Cannamoms in 2013 to educate people on the medical benefits of cannabis. 

“She woke up hungry and thirsty the next morning. Most importantly, she quickly regained her enjoyment of life and her will to live,” she continued. “Within days, she started walking, talking, laughing, and playing again. I absolutely believe cannabis saved her life.”

Adult-Use Initiative Pending

A separate initiative proposal to legalize adult-use cannabis that is supported by Trulieve, Florida’s largest medical marijuana provider, is currently being reviewed by the state Supreme Court. If the initiative passes judicial muster, it will appear on the ballot for next year’s general election.

Barnhart says that she fears that if the recreational marijuana initiative is successful, Florida’s medical marijuana program will be harmed. She said if adult-use cannabis is legalized, dispensaries will likely prioritize high-THC products for recreational consumers who primarily want to get high. Barnhart is afraid that as a result, low-THC products and those with THC and CBD favored by many medical patients will no longer be available.

Barnhart cited Oregon, Washington and California to back up her claim, noting that all three states legalized medical marijuana before recreational cannabis. Once recreational marijuana was also legalized, the number of products intended for use by medical marijuana patients decreased. But Barnhart noted that those states allow patients to grow cannabis at home, allowing them to cultivate the strains that are best suited for their needs.

“We need botanical medicines to be as personalized as possible,” Barnhart said. 

“Large corporations cannot accommodate that, and they are not going to lose money from small, vulnerable demographics of people who need personalized medicine and choose to grow their own cannabis,” she added.

With the failure of the medical marijuana home cultivation citizen’s initiative, Barnhart says that she hopes a large company like Trulieve will support a new home cultivation initiative as a sign of goodwill for patients. Trulieve is the biggest supporter of the adult-use cannabis proposal and has donated nearly all of the $39.5 million the campaign has spent on the initiative drive.

Steve Vancore, a spokesperson for Trulieve, said that support from the company for a future home cultivation initiative is a possibility.

“The near-term focus for Trulieve is supporting passage and implementation of the Smart & Safe Florida initiative,” Vancore wrote in an email to the Miami New Times.

But he added, “Trulieve has supported home-grow initiatives in Florida in the past and expects they will continue to do so in the future.”