Marijuana measures on state ballots don't offer the same "wow" factor they once did. But every so often, a state that can deliver big-time cannabis sales puts a recreational pot measure up for vote. This election cycle, it was the long-awaited attempt to legalize personal-use marijuana in Florida.

Amendment 3 would allow adults 21 and over to purchase and possess up to 3 ounces of cannabis for personal use. It would also grant medical cannabis dispensaries the ability to cultivate, sell, and distribute recreational weed for personal use.

Image source: Getty Images.

Florida's cannabis amendment is a buzzkill

The Sunshine State is the third largest cannabis market by sales in the U.S., behind only Michigan and California -- and this is only accounting for medical marijuana sales. Unfortunately, the buzz surrounding Amendment 3 flamed out on Election Day.

Despite support from Republican Party presidential nominee Donald Trump, just 55.9% of the roughly 10.6 million votes cast for Amendment 3 were in favor of its passage.

Because the Sunshine State's constitution needs to be amended to legalize adult-use weed, a 60% "yes" vote would have been necessary for it to pass. It's undoubtedly a disappointment for marijuana companies that have been steadily building their presence in Florida, including Trulieve Cannabis (TCNNF -8.27%), Verano Holdings (VRNO.F -7.31%), and AYR Wellness (AYRW.F -6.21%).

But wait -- there's a silver lining

While the failure of Amendment 3 isn't what the Floridian majority had hoped for, there's still something of a silver lining for the likes of Trulieve, Verano, and AYR, which have enjoyed immense success by selling higher-margin medical marijuana.

Under Joe Biden's administration, the wheels have been put into motion to reschedule marijuana from a Schedule I to a Schedule III substance, under the Controlled Substances Act (CSA). The U.S. Drug Enforcement Administration will be holding a hearing before an administrative law judge that's set to begin in early December, and that may pave the way for an official rescheduling of cannabis under the next administration.

Even without the approval of recreational marijuana in Florida, the rescheduling of cannabis under the CSA would be a massive win for Trulieve, Verano, and AYR. Currently, internal revenue code Section 280E disallows companies that traffic federally controlled substances from taking normal tax deductions, outside of cost of goods sold. A potential move to Schedule III would remove this burden and immediately improve the profit potential for these companies.