Pubdate: Mon, 13 Jul 2015
Source: Orlando Sentinel (FL)
Copyright: 2015 Orlando Sentinel
Contact:  http://www.orlandosentinel.com/
Details: http://www.mapinc.org/media/325
Note: Rarely prints out-of-state LTEs.
Author: Scott Powers

JOHN MORGAN: EXPECT MARIJUANA GOLD RUSH, THEN SHAKEOUT

John Morgan, 59, is founder of the Morgan & Morgan law firm, 
headquartered in Orlando. He also is chairman of the pro-medical 
marijuana group United For Care, which is planning a second attempt, 
in 2016, to get statewide approval for a constitutional amendment to 
legalize medical marijuana in Florida. He spoke with staff writer Scott Powers.

What kind of business opportunities are likely to emerge if medical 
marijuana is legalized?

There will be greenhouses and grow houses; there will be 
dispensaries; there will be different industries that will produce 
ways to deliver medical marijuana, whether its brownie pans or pipes 
or whatever. And there will be real estate opportunities that will emerge.

Economic estimates are relatively low for just low-THC, Charlotte's 
Web-type medical marijuana, which is now legal, and up to $800 
million a year in business activity with full medical marijuana 
legalization. Does that sound right to you?

That sounds about right. These aren't my estimates. These are the 
state government's: They believe in Tallahassee that 300,000 to 
400,000 people would be candidates for medical marijuana. ... So 
there will be a real need to satisfy those 400,000 people.

Are we likely to see some Wild West times with scammers, criminals 
and bad businessmen getting involved?

I think the real scammers are the ones that have already come along 
and gone, holding seminars about how to build a business. Look, 
you've seen the stranglehold that Tallahassee has had on Charlotte's 
Web. I think they'll be just as strict and just as cautions. So I 
don't think so.

What states do you think provide business models for a 
medical-marijuana industry in Florida?

I think Arizona. It's a very conservative state with a very 
conservative governor. It is made up of John McCain-type Republicans, 
Jeff Flake-type Republicans, and they passed it and the world didn't 
end. And it works.

There are places such as Rhode Island that started out with 
Charlotte's Web-type medical marijuana programs and found the 
economics very difficult, resulting in poor sales and high prices. 
Florida is following the same path. What kind of business do you 
expect for the Charlotte's Web program in Florida?

It will not do that well as there are very few who need it. Over 
time, economics takes care of this.

Any idea what the business will be like in five years?

I think it will be a tremendous boon for Florida's economy. It will 
be a huge tax base for revenue. There will be a boon in real estate 
. There will be a lot of new jobs created, which is Gov. [Rick] 
Scott's first, second and third priorities in Florida.

Banks will be reluctant to get involved. Where do you see the capital 
coming from?

Everywhere. People see this as an industry that's going to be here 
forever, that is sustainable, that is needed. I can tell you that 
every big-time lobbyist in Tallahassee has a client or more with deep 
pockets that are ready, willing and able to come as soon as we get this passed.

Are these existing businesses or entrepreneurs?

Both. You already have the [Charlotte's Web] oil people from all over 
that are coming in. I know that the greenhouse industry and the 
foliage industry are very interested. And I know that all of the 
lobbyists have a client. Law firms have opened up practice areas in 
anticipation ... So there is going to be a lot of interest and a lot of money.

Now like everything, there will always be too many. Any time you have 
a gold rush you have too many. It seems like once upon a time on 
every corner there was a laser-removal center, and a tanning center. 
And then there is a shakeout. ... The weak perish and the strong survive. ..

If there are only 300,000 or 400,000 people that need this, there 
will be only so many dispensaries. So Economics 101 will take over 
like it always has forever in America.

Do you have any personal business interests in medical marijuana?

I do not.
- ---
MAP posted-by: Jay Bergstrom