Why it matters: Medical marijuana providers in Oklahoma are suing the state over increased regulatory fees that they claim are unconstitutional. The legal action challenges a new fee structure that raises fees significantly for licensed medicinal cannabis businesses in the state.
What they are saying: According to the lawsuit, the fee increases authorized by the legislation are a “revenue-raising” measure and should have been passed with a supermajority by the Oklahoma Senate and the state House of Representatives. The plaintiffs argue that the legislation is not regulatory in nature and does not add any new regulations to warrant the higher fees. Moreover, they argue that the tiered fee structure created by the legislation is discriminatory.
The big picture: The lawsuit seeks to overturn the increased fees and highlights a constitutional question about the legality of the fee structure. It also sheds light on the ongoing efforts by Oklahoma lawmakers to tighten regulations on the state’s medical marijuana program, following the failure of a ballot initiative to legalize recreational marijuana.
What to watch: It remains to be seen how the court will rule on the lawsuit and whether the increased fees will be overturned. The outcome of the case could have implications for the medical marijuana industry in Oklahoma, as well as for regulatory fee structures in other states.
My take: It’s important for regulatory fees to be fair and proportional to the services they fund. If the plaintiffs are successful in demonstrating that the fee increases are unconstitutional and not tied to the cost of regulation, it could set a precedent for other states and potentially lead to changes in fee structures across the industry. However, it’s unclear how the court will interpret the legislation and whether it will agree with the plaintiffs’ argument.
