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A Florida appellate court ruled that the state's approach to regulating marijuana is unconstitutional, possibly allowing more providers to jump into a market positioned to become one of the country's most lucrative.

If the ruling stands, it could force state officials to lift existing caps on how many medical marijuana treatment centers can operate in Florida.

Tuesday's ruling by the 1st District Court of Appeal in Tallahassee was another setback for Florida officials trying to regulate the burgeoning marijuana industry more tightly. It mostly affirmed a lower court's ruling that the caps and operational requirements violated the voter-approved constitutional amendment legalizing medical marijuana in 2016.

Ever since, the law has been a subject of debate in the legislature and courts. It was unclear whether Florida officials would appeal the ruling.

Florida now has more than 240,000 people registered with the state to legally use medicinal marijuana, according to the Office of Medical Marijuana Use. They are served by 142 dispensaries across the state, the majority operated by about a half-dozen medical marijuana treatment centers that grow their own crop, process it and sell it — a business model known as vertical integration.

That business model and the limited number of treatment centers were points of contention for Tampa-based Florigrown, which sued the state after being denied a license.


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