An administrative law judge is set to determine whether a $1.33 million license renewal fee is excessive for medical marijuana operators operating in Florida.
The fee was increased by Governor Ron DeSantis’ administration in December from $60,000, which had been the standard since the inception of the state’s medical marijuana program six years ago. This hike came after the governor expressed dissatisfaction with marijuana companies not contributing enough, despite licenses being sold for more than $50 million. Sanctuary Cannabis, one of the state’s 24 medical marijuana operators, filed a challenge in September, arguing that the biennial fee lacks logic, considering the millions of dollars paid by patients for identification cards to participate in the program.
The Department of Health’s attorneys maintain that the formula for the fee aligns with decisions made by state lawmakers, and it is required to cover the costs of administering the medical marijuana program.
Both Sanctuary Cannabis and the health department presented their final arguments in the dispute at the state Division of Administrative Hearings. Sanctuary’s attorneys argued that the law doesn’t require operators to bear the burden of regulating the industry, while the health department’s attorneys defended the fee-setting rule as executing a clear statutory directive.
The ongoing debate revolves around the interpretation of Florida law and whether other revenue sources should be considered when setting the renewal fee. The outcome of this case could have significant implications for the future of the state’s medical marijuana operators.
