Florida governor’s veto plan may boost hemp industry, hinder marijuana legalization

Florida Gov. Ron DeSantis reportedly plans to veto a bill that would ban consumable hemp-derived products, such as delta-8 THC, according to sources close to the governor who spoke to CBS News Miami.

Such a move could bolster the state’s hemp industry while simultaneously undermining a marijuana legalization initiative set to appear on the state’s November ballot.

The Republican governor, who has been vocal in his opposition to marijuana legalization, appears to be leveraging the hemp industry’s economic interest in the intoxicating cannabinoid market to garner support for his campaign against the legalization measure.

However, DeSantis’ strategy has raised eyebrows, as it seemingly contradicts his concerns about access to high-potency THC products. By vetoing the legislation, he would effectively allow an quasi-regulated market for intoxicating hemp-derived products to continue operating without public health defenses.

“It doesn’t make sense, unless what you are really looking for is money from the hemp industry,” an unnamed source told CBS News.

Despite the governor’s opposition, cannabis companies backing the legalization initiative, such as Trulieve Cannabis Corp. (OTCQX: TCNNF), remain optimistic about its prospects. Economic analysts from the Florida Legislature and the governor’s office estimate that the measure could generate between $195.6 million and $431.3 million in new annual sales tax revenue if approved by voters.

Additionally, BDSA predicts the state’s market could reach nearly $900 million in recreational sales in 2025, with the potential for total cannabis sales nearing $4.5 billion by 2028.

The legalization initiative, which requires a 60% supermajority to pass, would allow existing medical marijuana dispensaries to sell cannabis to adults 21 and older, with individuals permitted to possess up to one ounce of marijuana, including up to five grams of concentrates.