Two major losers on Election Day were VP Kamala Harris and marijuana. While Harris was defeated by Donald Trump, voter initiatives that would've legalized adult cannabis use in three states - Florida, North Dakota and South Dakota – all failed.
Florida was the biggest loser of the three, by far. While 56% of Floridians favored Amendment 3, it still went down to defeat primarily because amendments to the state's constitution require 60% to pass. That happened in 2014 when medical marijuana won at the ballot. But not on Tuesday. What happened?
Trulieve and Other MSOs Tried to Buy the Election
Safe & Smart Florida raised $152 million in the most expensive marijuana ballot initiative ever; the oppposition had $33 million to play with. Trulieve contributed 94% of Safe & Smart Florida's funding, a total of $143 million. Three other multistate operators (MSOs) – Verano, Curaleaf and Green Thumb Industries – pitched in a total of $8.7 million. The companies would have benefited by the expansion of their medical marijuana treatment centers (MMTCs) to adult-use or recreational sales. This would have significantly increased the revenues of the 25 companies already in the market. In Florida, Trulieve leads all MSOs with 142 MMTCs, followed by MUV (77), Ayr Cannabis (64), Curaleaf (63), Surterra Wellness (45) and RISE/GTI (23).
It's not unusual for states to allow medical businesses to sell to all adults, not just patients, once recreational legalization passes. Colorado, New Jersey, Arizona and other states did it; it's called "flipping the switch." States like New York, with its focus on social equity, didn't. When the largest companies benefit first, smaller ones don't get the chance to enter the market, and when they do they have to make up for lost time.
Industry veteran Shaleen Title has offered the most stinging criticism of Amendment 3. She told the Cultivated newsletter:
"Amendment 3's near-total funding by Trulieve raised legitimate concerns about market fairness and consumer choice. The measure's failure to include provisions for social equity, home cultivation, or limits on industry consolidation suggests voters are thinking critically about not just whether to legalize, but how to do it in a way that benefits consumers and communities, not just large corporations,”
Comparisons to the failed legalization effort in Ohio in 2015 have been made. Issue 3 lost by a 2-1 margin mostly due to attacks from the pro-pot, anti-Issue 3 group Ohioans Against Marijuana Monopolies, The same happened in Florida, but the attacks mostly came from the right, led by Florida Gov. Ron DeSantis, who railed against so-called Big Cannabis companies. A longtime opponent of marijuana legalization, DeSantis actually denounced Issue 3 for not allowing homegrow.
To further complicate matters, Trump endorsed Issue 3. However, this did not help it pass.
What's Next for Florida
It took another eight years for Ohio voters to enact adult-use legalization after the Issue 3 debacle in 2015. The same could happen in Florida. The only hope for the time being is getting the state legislature to seize the issue and allow stores to sell to all users. Otherwise, another ballot initiative could take place in 2026. That one will not be dominated by a handful of companies and would include homegrow.
What's Next for Cannabis
Trying to win adult-use elections in red states has become fruitless. Oklahoma's Question 820 lost last year and now Florida and the Dakotas this year. Advocates should stop wasting money on these efforts. (However, Nebraska's two medical measures did pass.) Until the federal government steps in, there will be the jigsaw puzzle of 24 adult use states and another 39 for medical purposes. Plus, there are intoxicating hemp products that people can access wherever cannabis is still prohibited and in some states where it's not.
What's Next for Trulieve
The company took a big hit with a 44% stock decline the next day. Trulieve will rebound but also has to learn the lesson that you can't buy an election. Who knows - maybe Trulieve CEO Kim Rivers, who met with Trump before his Amendment 3 endorsement – will be offered a job in the Trump adminstration.
More Political Links
• The Pros and Cons of Moving Cannabis to Schedule 3
• States Where Caznnabis Is Legal, Decriminalized or Medicalized
• VP Elect JD Vance Smoked Pot as a Teenager
