Medical cannabis operators in Florida will continue to pay roughly $1.3 million in biennial license renewal fees after the 1st District Court of Appeals dismissed arguments that the state should use revenue generated from other marijuana-related activity to reduce the fees.
According to Green Market Report, the court ruled unanimously that the state health department’s statutory authority includes establishing the fee structure for medical marijuana treatment centers, as dispensaries are designated in Florida.
The emergency rule established by the state adheres to Florida law requiring license fees to cover regulatory costs, Chief Judge Timothy Osterhaus ruled Wednesday.
“We see no arbitrariness or capriciousness in the rule’s formula because §381.986(8)(b) explicitly conditions the Department’s licensing fee-setting authority on covering two specific costs with these fees,” Osterhaus wrote in his decision.
The fees were increased by more than twentyfold – from $60,000 to $1.3 million – in 2022 after a legislative mandate that was supported by Florida Gov. Ron DeSantis.
Sanctuary Cannabis, a vertically integrated operator with multiple dispensaries in the state, in 2023 requested an administrative hearing with the health department, arguing in a petition that the fee hike was “an exponential increase” from previous assessments.
In November, Florida approved 22 new dispensary licenses, which will nearly double the number of licensed companies operating in the state.
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