Who Can Own a Medical Marijuana Treatment Center (MMTC) in Florida?

Florida’s medical marijuana program is one of the most tightly regulated in the country—and that includes laws and rules governing who can own or control a Medical Marijuana Treatment Center (MMTC). Whether you’re an investor, entrepreneur hoping to break in to Florida’s market, or an executive at a multi-state cannabis company with operations in Florida, understanding these requirements is essential before getting involved in the industry.

The Legal Definition of “Owner”

Under Emergency Rule 64ER20-31(29), Florida defines an “owner” of an MMTC as:

“Any person who, directly or indirectly, owns (actually or beneficially) or controls, a 5% or greater share of interests of the applicant or a medical marijuana treatment center….”

This means ownership isn’t limited to just those listed on corporate documents or shareholders with a formal title. If you own or control 5% or more of the equity or voting rights—directly or indirectly—you’re an “owner” for purposes of Florida’s regulations.

Background Check Requirements

All owners, as defined above, must pass a Level 2 background screening. This is a fingerprint-based check that scans state and national criminal history databases and includes disqualifying offenses that could prohibit ownership or employment in the industry.

No Dual Ownership Allowed

One of the most significant restrictions:

An MMTC and its 5%+ owners cannot own, control, or hold voting power in any other MMTC.

This dual ownership prohibition prevents the consolidation of multiple licenses under one individual or corporate umbrella and is intended to promote competition within Florida’s medical marijuana market. Note, if you own 5% of one MMTC, you cannot own even a single share of another MMTC. (But you can own less than 5% of multiple MMTCs as long as you don’t exceed the 5% threshold for any of them). MMTCs are required to maintain up-to-date capitalization tables listing all natural person owners on file with OMMU, which regularly analyzes them to ensure compliance.

Changes in Ownership Require Pre-Approval

Ownership of an MMTC is not something you can freely reallocate. Any change in ownership (outside of the normal trading of shares in the public float, which publicly owned MMTCs cannot control) must be pre-approved by the Office of Medical Marijuana Use (OMMU).

Here’s how that works in practice:

• Closely Held Companies:
  If your company is not publicly traded, every change to the cap table must be pre-approved. You are also required to maintain an updated fully diluted cap table (which includes all convertible notes, options, and warrants) on file with OMMU at all times.

• Publicly Traded Companies:
  Public companies must seek pre-approval for any changes in ownership that occur outside of the public float—that is, outside of shares freely traded by members of the public.
  This includes:

  • Private placements

  • Executive compensation

  • Equity grants to employees

  • Founders’ shares

  These changes are not exempt from oversight and must be cleared with the OMMU.

Mergers & Acquisitions

Thinking of buying or selling an MMTC? Planning a merger or spin-off?

All mergers, acquisitions, and other major changes in control must be pre-approved by the OMMU. Attempting to sidestep this process can jeopardize the MMTC license—and potentially trigger enforcement action or revocation.

Final Thoughts

Owning a licensed MMTC in Florida can be a lucrative opportunity—but it's not as simple as signing a check or simply informing regulators of your plans. Between strict ownership definitions, background checks, and mandatory pre-approvals, navigating the regulatory framework takes careful planning and ongoing compliance.

Before moving forward with any investment, ownership transfer, or corporate restructuring involving an MMTC, it’s critical to understand the rules—and get the necessary approvals—before executing the deal.

If you're considering acquiring or restructuring ownership of an MMTC, contact Baxter Law to ensure your transaction complies with Florida's evolving cannabis regulations.