Benefits of lottery system in selecting marijuana dispensaries.

1. THE
LOTTERY
SYSTEM
WHY THE DEPARTMENT OF HEALTH GOT IT
RIGHT

2. THE LOTTERY DEBATE
LOTTERY SYSTEM
QUALITATIVE
ASSESSMENT

3. HOW LOTTERY SYSTEM
WORKS
Lottery incentivizes
participants with
different interests to
contribute
collectively
Exchange of
information is able
to improve legal
framework and
infrastructure
Allows for best
system with a
minimum of
payouts (5
licenses)

4. 1] Increases Group
Participation
2]Increases
Individual
Participation
3] Limits Strategic
Behavior (“Gaming
the System”)
BENEFITS OF LOTTERY SYSTEM

5. • This benefit was
evident at both
workshops as
individuals from all
over the country
provided guidance to
DOH
• Participants with
competing interests
worked together to
help develop the
structural framework
for marijuana
dispensaries.
INCREASED GROUP PARTICIPATION

6. BUSINESSES PHYSICIANS
PATIENTS
• The lottery has
garnered
participation and
contribution from a
myriad of sources
including nurseries,
pharmacist,
physicians, patients,
and investment
groups.
• The participants have
contributed
information and
resources to
improving physical
infrastructure and the
regulatory framework.
INCREASED INDIVIDUAL
CONTRIBUTION

7. • A qualitative system
would require a specified
rubric in which investors
and nurseries could
collectively attempt to
game the system.
• In other words, they
would merely invest in
the infrastructure that
would be evaluated in the
rubric, not the actual
outcome of the product.
• Likewise, the lottery limits
ex post gaming by
deterring denied
applicants from
litigating.
LIMITS STRATEGIC BEHAVIOR

8. Middlemen
Solicit
Nurseries
Lineup
Nurseries with
Investors
Together
Nurseries,
Investors and
Middleman
‘game system’
WHAT STRATEGIC BEHAVIOR
LOOKS LIKE

9. Qualitative
Assessment
(QA)
Investors
back specific
nurseries
and game
QA
Licenses
Awarded to
Nurseries
with Most
Money
Selected
Nurseries
Must Provide
Return on
Investment
Rejected
Nurseries
Sue Based
on QA
QA LEADS TO
‘GAMING’
FEEDBACK
LOOP

10. Checklist approach
would result in the
following:
1. Strategic Behavior
before the selection
process
2. Florida Dept. of
Health being at
disadvantage to
industry with regard
to resources and
expertise.
3. More opportunities
to litigate after
selection process
‘QA’ CANNOT BE REDUCED TO CHECKLIST