Florida voters reject adult-use marijuana amendment

In a stinging rebuke to the $32 billion regulated U.S. marijuana industry – and to one multistate operator, in particular – Florida voters on Tuesday appeared to reject a constitutional amendment that would have legalized adult-use cannabis in the nation’s largest medical-only market.

The Election Day setback also is a nightmare scenario for Tallahassee-headquartered Trulieve Cannabis Corp., which spent at least $144.5 million on a yearslong effort to qualify Amendment 3 for the ballot.

Despite that massive outlay, the measure was on track to fail decisively as of 10:30 p.m. ET Tuesday, with 55.9% of voters in support and 44.2% opposed, according to the Florida Division of Elections.

A constitutional amendment in Florida requires 60% support to pass.

Marijuana stakeholders react

“Amendment 3 has failed,” Florida Gov. Ron DeSantis, who campaigned against the measure in defiance of former President Donald Trump, posted on X, formerly Twitter, a few minutes after the Florida polls closed.

In a brief statement issued at 8:33 p.m. ET, the Smart & Safe Florida campaign noted that the “majority of Floridians voted in support of legalizing recreational marijuana for adults.”

“While the results of Amendment 3 did not clear the 60 percent threshold, we are eager to work with the governor and legislative leaders who agree with us on decriminalizing recreational marijuana for adults, addressing public consumption, continuing our focus on child safety, and expanding access to safe marijuana through home grow,” the statement added.

In a statement posted to X, Trulieve CEO Kim Rivers also put her focus forward.

“Proud to have fought the fight – we left it all on the field,” she said.,

“Looking forward to working with the legislature on the next steps to ensure safe access to marijuana for adults in Florida, decriminalization for personal possession and home grow.

“A big thank you to everyone across the state who supported the campaign! Onward!”

Cannabis advocacy groups also accepted defeat.

“Smart & Safe Florida ran a historic, bipartisan campaign that achieved majority support among Floridians,” said David Culver, chief of policy at the U.S. Cannabis Council, a Washington, D.C.-based lobbying group representing regulated marijuana companies.

“Anywhere else, that would have meant a victory, but Florida requires a supermajority, and the state’s governor spent tens of millions of taxpayer dollars to defeat the measure.”

Added Culver: “This isn’t the end in Florida, it’s just the beginning since we’ve now seen how strongly the push for legalization resonates in the state.”

Conservative opposition

The defeat in Florida is another hashmark in marijuana legalization’s growing loss column.

Though Ohio voters legalized an adult-use market in 2023 – following Maryland and Missouri in 2022 – the Florida results indicate marijuana voter initiatives might have hit a “red wall” of conservative states.

Oklahoma rejected adult-use marijuana in March 2023, but results in the Dakotas were still pending as of 9 p.m. ET Tuesday.

The Florida defeat could spell some trouble for marijuana reform prospects in Washington, D.C.

It also raises major questions for Trulieve, which invested massively on the adult-use legalization measure.

Where marijuana is legal in the United States

Status quo, but with questions

The Amendment 3 defeat means the status quo will continue for the 20 companies - including marijuana MSOs Ayr Wellness, Curaleaf Holdings and Green Thumb Industries as well as Trulieve - that hold vertically integrated medical marijuana treatment center (MMTC) licenses in Florida.

Those firms currently operate a total of 692 medical marijuana dispensaries in Florida, according to the state Office of Medical Marijuana Use.

What will happen to the 73 applicants that applied for 22 new MMJ licenses in spring 2023 is less certain.

Florida medical marijuana law caps the number of permits allowed, with the limit tied to the number of patients in the state’s MMJ registry.

But state regulators have yet to offer any of the 2023 applicants - who paid $146,000 in fees on top of the capital outlay required to secure real estate - so much as a timeline of when their applications might be processed, let alone when permits would be issued.

Next try?

Amendment 3’s defeat also begs the question of when the state might have another crack at adult-use legalization - and who would be willing to pay for it after such an expensive setback.

Adult-use legalization might have driven profitability for Trulieve, which reported quarterly losses of 60 million Canadian dollars ($43.4 million) in an earnings statement posted Tuesday.

Instead, critiques amplified by DeSantis that Amendment 3 was a monopoly play by MMTC licensees resonated with voters, observers said on election night.

However, DeSantis also was able to mobilize state resources - including public funds awarded in a settlement with opioid manufacturers - to pay for anti-legalization ads, state lawmakers alleged.

“Florida's rejection of Amendment 3 echoes a similar message sent by Ohio voters in 2015, when they struck down a measure that would have granted exclusive growing rights to just 10 producers,” said Shaleen Title, an attorney and former Massachusetts cannabis regulator.

“In both cases, voters rejected proposals that would have created highly concentrated markets favoring a small number of entities funding the effort.

“Amendment 3's near-total funding by Trulieve raised legitimate concerns about market fairness and consumer choice.”

Chris Roberts can be reached at chris.roberts@mjbizdaily.com.