An administrative law judge is poised to decide whether a $1.33 million license-renewal fee is too pricey for medical-marijuana operators doing business in Florida.
Gov. Ron DeSantis’ administration in December hiked the fee, which had been $60,000 since the inception of the state’s medical-marijuana program six years ago. The increase came after the governor complained that marijuana companies — whose licenses have sold for upwards of $50 million until recently — weren’t paying enough.
Sanctuary Cannabis, one of 24 medical-marijuana operators in the state, in September filed an administrative challenge arguing that the $1.33 million biennial fee is “wholly without logic or reason” because it does not take into account tens of millions of dollars from patients who pay $75 a year for identification cards to participate in the program.
Read: Florida Man Charged After Hurling Oreos At His Wife Over Coffee Maker Being Empty Of Water
Lawyers for the Department of Health, however, maintain that the formula reflects decisions by state lawmakers.
Florida law says the department must adopt rules “establishing a procedure for the issuance and biennial renewal of licenses, including initial application and biennial renewal fees sufficient to cover the costs of implementing and administering” the medical-marijuana program.
The disputed rule adopted in December created a formula basing the renewal fee on…
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