1. Understand regulatory and legal requirements. Do market research.

Research the laws and regulations governing medical-use cannabis for more information about the regulatory requirements for licensure in the city or town you wish to operate.

Florida Cannabis Legalization

The Florida Medical Marijuana Legalization Initiative, also known as Amendment 2, was approved by voters on November 8, 2016 with 71% of the vote, and Florida became the first state in the South with a full-scale medical cannabis program.

The Office of Medical Marijuana Use (OMMU) is charged with writing and implementing the Department of Health’s rules for medical marijuana; overseeing the statewide Medical Marijuana Use Registry; licensing Florida businesses to cultivate, process and dispense medical marijuana to qualified patients; and certifying marijuana testing laboratories to ensure the health and safety of the public as it relates to marijuana.

Florida Cannabis Market

2. Decide the type of cannabis business. Choose a location. Check local zoning regulations.

Cannabis Licenses Types available in Florida

Licensed medical marijuana treatment centers (MMTCs) are vertically integrated and are the only businesses in Florida authorized to dispense medical marijuana and low-THC cannabis to qualified patients and caregivers. Each MMTC must receive authorization at three stages:

1. cultivation authorization,
2. processing authorization and
3. dispensing authorization,

prior to dispensing low-THC cannabis or medical marijuana.

• Application Fees: $146,000
• Biennial License Renewal Fees: $1,330,000

Cannabis Delivery in Florida

Medical cannabis delivery is allowed for registered patients. Only licensed medical marijuana treatment centers can offer cannabis delivery services in the state to registered Florida patients.

Cannabis Delivery Service by State

3. Develop a solid cannabis business plan. Secure financing.

Application requirements include a business plan demonstrating a likelihood of success and sufficient business ability and experience on the part of the applicant:

• A step-by-step explanation of how you intend to move from licensure by the Department to a fully operational MMTC dispensing usable product to qualified patients and caregivers; and
• Any assumptions upon which estimates provided are based and a description of the bases for those assumptions.

4. Prepare the required documents. Submit applications. Pay fees.

The application process is divided into three parts:

I. Part I requires the applicant to provide basic information about the applicant and application.

II. Part II requires the applicant to provide the OMMU with detailed items to demonstrate the ability to operate as a MMTC.

III. Part III provides information on application submittal, the required application fee, and includes the applicant signature page.

An applicant shall provide information in a form and manner as prescribed by the Department, which may include, but is not limited to the following:

• Applicant Information.
• Declaration of Exempt Information.
• Florida Business Registration.
• Level 2 Background Screening.
• Cultivation Plan. Cultivation Infrastructure. Ability to Secure Cultivation Infrastructure.
• Processing Plan. Processing Infrastructure. Ability to Secure Processing Infrastructure.
• Dispensing Plan. Dispensing Infrastructure. Ability to Secure Dispensing Infrastructure.
• Premises Security. IT Security. Diversion, Unlawful Access, and Transportation.
• Personnel Screening and Training.
• Recalls.
• Experience in the Marijuana Industry (Applicant). Other Relevant Experience.
• Business Plan.
• Prior Enforcement Action.
• Experience in the Marijuana Industry (Medical Director). Other Relevant Experience.
• Oversight. Managing Conflicts of Interest.
• Medical Director Acknowledgment and Certificate of Course Completion.
• Personnel Qualifications. Drug Free Workplace. Personnel Training.
• Diversity Plan. Implementation of Diversity Plan.
• Certified Financial Statements. Available Funding. Projected Budget.
• Ownership Information for Individual (Natural Person) Applicants. Ownership Information for Entity Applicants.
• Capitalization Tables, Change of Control, and Related Entities.
• Applicant Acknowledgment.

The application fee for an MMTC license in Florida is currently $146,000. This non-refundable fee is required for new applicants and must be paid at the time of application.

5. Final approval. Final fees. Obtain the required licenses.

Phase One Review involves the Department’s initial review of applications for apparent errors and omissions. If your application contains apparent errors or omissions, you will be notified in writing of the apparent errors or omissions, or if additional information is needed, and you will be afforded an opportunity to timely correct the errors or omissions and supply additional information, as requested. After completion of Phase One Review, applications will be submitted for Phase Two Review. During Phase Two Review, the Department’s evaluators will qualitatively review and score the scored sections of the applications, and other Department personnel will assess the non-scored portions of the applications. Upon completion of Phase Two Review, the Department will proceed to Phase Three Review during which it will calculate the Total Application Score for each application and approve the selected applicant for licensure.

Once your application is approved:

• Rule 64ER22-9: Must pay a license fee to obtain your MMTC license. The amount of this fee depends on various factors and is determined by the Florida Department of Health. The current amount is $146,000.
• Rule 64ER22-1: Must post $5 million bond 10 days after licensure.
• Rule 64ER 21-10: Must request cultivation authorization within 60 days of licensure, processing authorization within 120 days of licensure and dispensing authorization within 180 days of licensure.

6. Register your business as an employer and a tax payer.

7. Keep track of your ongoing compliance requirements.

Physical security measures, good production practices, packaging, labelling, transport and reporting requirements, taxes and more.

Florida Cannabis Taxes

Florida does not impose an excise tax on the sale of medical marijuana. Purchases are subject to 6% statewide retail sales tax.

Main steps in short

• Understand regulatory and legal requirements. Do market research.
• Decide the type of cannabis business. Choose a location. Check local zoning regulations.
• Develop a solid business plan. Secure financing.
• Prepare the required documents. Submit applications. Pay fees.
• Final approval. Final fees. Obtain the required licenses.
• Register your business as an employer and a tax payer.
• Keep track of your ongoing compliance requirements.

Cannabis Vertically Integrated Business Plan Sample, Florida

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