Why it matters:
Florida medical cannabis companies are facing a substantial increase in license renewal fees, with one company challenging the price hike. The outcome of this challenge could impact the state’s medical cannabis system.
What they are saying:
Sanctuary Cannabis, a medical cannabis company due for license renewal in January, argues that the $1.33 million license fee is unjustified. They filed a petition against the fee hike, emphasizing the high costs imposed on operators.
The big picture:
Florida’s Department of Health implemented a rule last December that set the license-renewal fee for medical cannabis operators at $1.33 million every two years, more than 22 times the fee from six years ago. The department argues that the fee increase is necessary, but Sanctuary’s lawyers highlight the department’s surplus and claim the increase is unreasonable.
What to watch:
The outcome of Sanctuary Cannabis’ challenge could determine whether the license renewal fee hike stands or is deemed invalid. If the fee increase remains in place, it could have significant implications for medical cannabis companies in Florida.
My take:
The substantial increase in license renewal fees seems excessive and could pose financial challenges for medical cannabis operators. It will be interesting to see how the legal challenge unfolds and whether the state will reconsider the fee hike in light of the department’s surplus.
