TALLAHASSEE — An administrative law judge has ruled that state regulators were correct in rejecting Green Thumb Industries’ (GTI) proposal to open medical marijuana dispensaries near or adjacent to convenience stores. GTI, which operates RISE dispensaries in Florida, had announced a lease agreement with Circle K in 2022.
The company planned to launch a “test and learn” phase starting in January 2023, with 10 dispensaries positioned next to Circle K locations in various parts of the state. However, regulators determined the plan did not comply with existing regulations, and the judge upheld their decision.
The partnership between Green Thumb Industries (GTI) and Circle K made national headlines and drew attention from the state Department of Health’s Office of Medical Marijuana Use, which regulates marijuana businesses in Florida. In early 2023, GTI sought approval to open a dispensary adjacent to a Circle K in St. Petersburg, but the plan was rejected by Christopher Kimball, the director of the Office of Medical Marijuana Use.
Kimball also denied similar proposals for dispensaries near Circle K locations in Ocala and Orlando, citing multiple reasons related to non-compliance with state law. In an October 2024 letter denying GTI’s request for a dispensary in Ocala, Kimball referenced a law that prohibits medical-marijuana operators from making changes that would lower the standards of what was originally approved in their license applications.
Kimball also highlighted a number of “safety and security considerations,” such as “increased risks of crime” associated with convenience stores and gas stations, and a “risk of diversion due to disproportionate crime rates, high traffic and accessibility.”
In addition to legal concerns Kimball raised issues about the proposed dispensary’s proximity to a convenience store, noting that such stores sell products appealing to minors and are frequently visited by adolescents.
In response to the rejections, GTI’s attorneys, Will Hall and Daniel Russell of the Jones Walker firm, filed a petition in November with the state Division of Administrative Hearings. They argued that health officials had unlawfully applied “unadopted rules” in denying the requests. The lawyers contended that these “unadopted rules” imposed unauthorized regulatory requirements on GTI and other operators seeking to expand their businesses.
They further pointed out that Florida law does not specifically prohibit medical-marijuana companies from opening dispensaries near gas stations or convenience stores.
THE RULING
Administrative Law Judge Joshua Pratt, who presided over the case last month, issued a ruling that upheld Director Christopher Kimball’s decisions. In his final order, Pratt explained that Kimball had considered each of the three variance requests individually, rather than applying a blanket policy to deny them. Pratt, a former lawyer for Gov. Ron DeSantis’ administration, noted that Kimball reviewed the facts and circumstances of each request on a case-by-case basis.
Pratt also found that Kimball had properly exercised his discretion in considering factors such as the proximity of convenience stores and gas stations. Kimball deemed these factors relevant to all three requests and appropriately weighed them based on the specific details of each proposal.
In an amended petition filed on November 22, attorneys for Green Thumb Industries (GTI) argued that dispensaries are already operating adjacent to various businesses across Florida, including gas stations and convenience stores, and that state law does not prohibit such locations. They pointed out that prior to significant media coverage of GTI’s proposed dispensary locations, the Office of Medical Marijuana Use (OMMU) had approved similar dispensaries near convenience stores and gas stations. However, the lawyers claimed that, starting around January 2023, the OMMU unexpectedly shifted its approach and began applying new non-rule policies that led to the denial of GTI’s variance request, without prior notice or explanation.
The amended petition also included photos of dispensaries operated by other medical marijuana companies located near gas stations, convenience stores, and even a miniature golf center. One example highlighted a Trulieve dispensary in Gainesville, situated in the same strip mall as a Wawa convenience store. The petition’s filing came after heightened national attention surrounding GTI’s announcement about its partnership with Circle K, which coincided with leadership changes at the OMMU.
Former Director Chris Ferguson, who had approved several requests for dispensaries near gas stations or convenience stores, was reassigned to a different position within the Florida Department of Health just weeks after GTI’s announcement. In November 2022, Governor Ron DeSantis appointed Christopher Kimball, an attorney with over two decades of service in the U.S. Navy and the Judge Advocate General’s Corps, to replace Ferguson as head of the Office of Medical Marijuana Use.
GTI also has another case pending before the Division of Administrative Hearings regarding the denial of a proposed dispensary in Ocala. This dispensary would be located in a building separate from an adjacent Circle K. GTI filed a petition with the Department of Health in November, and the agency referred the case to an administrative law judge earlier this week.
The petition challenges state health officials’ stance that placing a dispensary next to a convenience store could increase crime risks. GTI’s lawyers questioned the legal basis for this objection, arguing that it remains unclear why such concerns should apply to the Ocala variance, or any other request to open a new medical marijuana facility.
