Florida: Guide to Cannabis Laws & Licensing

Executive Summary (TL;DR)

• Florida cannabis licensing remains medical-only and vertically integrated under the Office of Medical Marijuana Use (OMMU). Adult-use proposals have not yet been enacted statewide; plan your timelines and pricing around the medical market structure.
• Local control drives site feasibility: zoning districts, sensitive-use buffers (e.g., schools), parking minimums, and security build-outs determine whether a parcel can realistically host cannabis uses.
• For real estate underwriting, assume meaningful tenant improvements (TI) for HVAC, security, and—where applicable—C1D1 extraction rooms, and model conservative debt service coverage ratio (DSCR) targets.
• Environmental diligence matters in Florida: wetlands delineation, stormwater management, riparian setbacks, and flood considerations can materially change costs and schedules.
• Use Florida-specific milestones (local approvals, OMMU suitability, building/fire permits) to sequence your LOI and APA closing conditions and to calibrate rent commencement and capex reserves.

Table of Contents

• Florida Market Overview for Florida cannabis licensing
• Land Use & Zoning: Local control, buffers, and retail siting
• Licensing Pathways & Agency Roles (OMMU & local approvals)
• Facility Design & Compliance: Security, C1D1, and TI budgets
• Environmental & Civil: Wetlands, stormwater, riparian setbacks
• Financing & Deal Structures: DSCR, TI, lease vs. purchase
• Risk, Timelines, and Permitting Pathways
• Seller & Buyer Checklists
• FAQs (Florida-specific)
• Call to Action

Florida Market Overview for Florida cannabis licensing

Florida remains a medical-only, vertically integrated market. Licenses are issued by the Florida Department of Health’s Office of Medical Marijuana Use (OMMU). Licenses are comprehensive—often referred to as Medical Marijuana Treatment Centers (MMTCs)—and cover cultivation, processing, and dispensing under a single enterprise authorization. As a result, real estate demand clusters around three footprints:

• Cultivation/processing campuses: Power-dense, climate-controlled, often with solvent-based extraction requiring hazardous location design (e.g., C1D1 rooms).
• Dispensaries (dispensing locations): Retail siting with sensitive-use buffers and local parking/signage rules.
• Logistics & distribution nodes: Secure warehousing and statewide delivery staging.

If you’re moving now—buying, leasing, or repositioning—start by scanning the Florida hub for active opportunities and comps: explore Florida cannabis real estate. For broader inventory across the state, compare available properties for lease and properties for sale to benchmark power availability, build-out condition, and asking terms.

Land Use & Zoning: Local control, buffers, and retail siting

Why it matters: Even with state authorization, cannabis facilities in Florida are constrained—or green-lit—by local land use. Municipalities and counties set rules for where retail dispensing locations can operate and how industrial sites can be improved.

Key siting factors

• Zoning districts: Confirm whether cannabis dispensing is treated akin to a pharmacy or as a unique use. Many jurisdictions allow dispensaries in certain commercial districts if they meet buffer and parking standards.
• Sensitive-use buffers: Florida law establishes a school buffer baseline for dispensing locations (local governments may adopt stricter rules or allow certain reductions). Always verify the current local ordinance and measurement method (parcel-line vs. building-to-building).
• Conditional Use Permit (CUP): Some jurisdictions require CUPs or special exceptions for dispensaries or processing uses. Build time for hearings, notices, and potential appeals into your schedule.
• Parking/signage: Visitor counts, delivery turnover, and security design can drive higher parking demand than a typical boutique retailer. Signage may be more restrictive than standard retail.
• Industrial compatibility: For cultivation and processing, confirm the use matrix for the applicable industrial district and whether solvent-based extraction is allowed, limited to specific zones, or subject to additional fire/life-safety conditions.
• Setbacks and screening: Expect screening, lighting, and trash enclosure requirements; some ordinances require façade upgrades for conversions.

Myth vs. Fact

• Myth: “If the state licenses my company, the city must allow my store.”
  Fact: Local zoning controls still govern location, buffers, parking, and operating conditions; the AHJ (Authority Having Jurisdiction) can deny a site that doesn’t meet the local code.

Licensing Pathways & Agency Roles (OMMU & local approvals)

State level (OMMU): Florida issues integrated MMTC licenses covering cultivation/processing/dispensing. New license windows, renewals, and suitability requirements are defined by rule and statute. The process includes application vetting, background checks, financial capacity, and operational plans (e.g., security and inventory controls).

Local level: Even MMTCs with state authorization must establish local land use compliance before opening a specific location. For dispensing locations, municipalities may (1) ban them; (2) regulate them comparably to pharmacies; or (3) allow them by district with buffers and conditions. For processing/extraction, local building and fire departments review hazardous location classification (e.g., C1D1 per electrical codes) and issue permits.

Seed-to-sale tracking: Florida requires participation in a state-mandated seed-to-sale system. Design SOPs that align with the platform’s chain-of-custody and reconciliation requirements and integrate them into your Quality of Earnings (QoE) and internal controls during diligence.

Security baseline: State rules require security systems—24/7 video, intrusion alarms, access control, and record retention. Many AHJs add floor-plan-specific demands (e.g., camera coverage, secured storage, vestibules).

Facility Design & Compliance: Security, C1D1, and TI budgets

Retail (dispensing locations)

• Access control & cash handling: Design secure entry (e.g., man-trap or verified lobby), separate consultation vs. POS lanes, and a back-of-house with safes/vaults. Cash minimization policies, armored pickup staging, and panic alarms are standard.
• TI scope: Lighting, low-voltage cabling, counters, ADA upgrades, security film, dedicated server room for NVRs, and hardened storage.
• Operating SOPs: Align opening/closing procedures, inventory counts, and incident reporting with OMMU rules.

Cultivation/processing

• Power & HVAC: Flower rooms and drying/curing require high latent heat removal and tight VPD (vapor pressure deficit) control; model electrical service, dehumidification tonnage, and redundancy.
• C1D1/C1D2 rooms: If using volatile solvents for extraction, plan for Class I, Division 1 (C1D1) hazardous locations with explosion-proof equipment, classified wiring methods, gas detection, and emergency ventilation meeting fire code.
• Water & drainage: Condensate management, trench drains with interceptors, and backflow prevention.
• Odor mitigation: Negative pressure, carbon filtration, and exhaust routing to meet nuisance ordinances.

Budgeting TI: For underwriting, carry contingencies for security (vault door, safes, card readers), mechanical/electrical upgrades, and potential re-inspection cycles. Schedule impacts are common if AHJs request additional calculations or stamped resubmittals.

Environmental & Civil: Wetlands, stormwater, riparian setbacks

Florida sites are often impacted by wetlands, flood zones, and stormwater constraints. Add these into diligence before you sign a long lease or drop a large deposit.

• Wetlands delineation: Use a qualified environmental consultant to flag jurisdictional wetlands and ordinary high-water marks. Even minor fill or driveway widening can require permits.
• Stormwater: Detention/retention design must comply with your regional Water Management District. Expansion or TI that increases impervious area may trigger new stormwater reviews.
• Riparian buffers: Parcels near streams or canals may have setbacks affecting building footprints, fencing, and security camera poles.
• Hazmat storage: If solvents are stored on-site, secondary containment and SPCC-like practices may apply per fire and environmental rules.

Decision matrix: environmental red flags

Financing & Deal Structures: DSCR, TI, lease vs. purchase

Capital access: Traditional bank financing remains limited for cannabis. Expect private credit, credit unions familiar with BSA/AML, or sale-leaseback structures. Underwrite cash flows conservatively with DSCR (Debt Service Coverage Ratio) targets of ~1.35–1.50x on normalized EBITDA, stress-testing for price compression and ramp delays.

Lease vs. purchase—what pencils in Florida?

Negotiation tips

• Tie rent commencement to milestones (e.g., CUP granted, building permit issued, CO obtained).
• Define TI allowances clearly; identify security scope (vault, cameras, access control) and “who pays.”
• Include change-order protocols; cannabis security changes frequently after plan check.
• Require assignment provisions tailored to license transfers or ownership changes allowed by the state.

Risk, Timelines, and Permitting Pathways (roles of AHJs; sequencing)

Recommended sequence

1. Screen parcels for zoning district, buffers, and flood/wetlands overlays.
2. Pre-application meeting with planning, building, and fire to confirm CUP needs, parking, and hazardous occupancy for extraction.
3. Letter of Intent (LOI) with conditions precedent (CUP approval, building permits, OMMU suitability).
4. Due diligence (title, survey, environmental, utilities, power letter, preliminary MEP).
5. CUP/special exception hearings (if required) and site plan approval.
6. Construction documents with stamped mechanical, electrical, structural, and security sheets.
7. Building/fire permit submittal; address plan review comments.
8. Security certification (camera coverage, vault/safe install, access control) and CO (Certificate of Occupancy).
9. Operational readiness (seed-to-sale integration, SOPs, hiring, training) and final state/local confirmations.

Where deals slip

• Buffer mis-measurement (property line vs. door-to-door).
• Under-estimating C1D1 build costs or missing gas detection specs.
• Wetlands or stormwater conflicts discovered late.
• Insufficient TI contingency and rent starting before CO.
• Incomplete security details (camera counts, NVR storage duration).

Seller & Buyer Checklists

For sellers/landlords

• Zoning confirmation letter (or municipal email) showing cannabis use permissibility.
• Site plan with measured buffers; parking count; ADA compliance.
• Utility letters (power capacity, water, sewer) and recent invoices.
• Roof, HVAC, and electrical condition reports; one-line electrical diagram if available.
• Environmental folder: Phase I ESA, wetlands delineation, flood info, stormwater drawings.
• Security readiness: conduit runs, MDF/IDF room, camera coverage rough-in.
• Proposed lease form with cannabis-specific provisions (assignment, compliance, indemnity).

For buyers/operators

• Licensing pathway memo: OMMU requirements, local approvals, and milestones.
• TI budget by area (retail/front-of-house, back-of-house, vault, cultivation rooms, extraction).
• C1D1 design basis (if applicable) with code citations and manufacturer specifications.
• DSCR model with rent commencement triggers and abatement logic.
• Insurance binder meeting cannabis security and hazard requirements.
• SOPs for inventory, cash handling, and seed-to-sale reconciliations.
• Contingent LOI/APA terms: holdbacks for delayed approvals, landlord cooperation covenants.

FAQs (Florida-specific)

Q1: Is adult-use cannabis legal in Florida?
No. As of this writing, Florida remains a medical-only market regulated by OMMU. Adult-use proposals have not been enacted statewide; plan your investment and staffing accordingly.

Q2: Can a city or county ban dispensaries?
Local governments retain control over whether dispensing locations are permitted and how they are treated (often comparable to pharmacies) and can establish local buffers and parking rules. Always confirm the ordinance and any moratoria.

Q3: What is the school buffer for dispensaries?
Florida law establishes a baseline buffer from schools for dispensing locations, with local governments able to adjust in their codes. Verify the exact distance and measurement method with the AHJ.

Q4: Do extraction labs require C1D1 rooms?
If you use volatile solvents, expect Class I, Division 1 (C1D1) hazardous location design, explosion-proof equipment, gas detection, and specialized ventilation meeting electrical and fire code.

Q5: What should my TI contingency be?
Contingencies vary by asset condition. Many Florida conversions carry meaningful TI for security, HVAC/dehumidification, electrical upgrades, and accessibility. Build in allowances for re-reviews when AHJ comments require revisions.

Call to Action

Ready to translate this guide into an actionable site shortlist and an approval-backed timeline?

This article is for educational purposes only and does not constitute legal, engineering, financial, or tax advice. Always consult qualified professionals and your local Authority Having Jurisdiction before making decisions.

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