Medical Cannabis Companies in Oklahoma Challenge Fee Increase in State Supreme Court

LOS ANGELES– Several licensed medical cannabis companies in Oklahoma have filed a petition with the state Supreme Court, seeking the repeal of a 2022 law that increased their fee burden. The petition, filed on June 30, argues that the new fee structure violates the state constitution and is essentially a disguised revenue-raising tax rather than a legitimate fee.

The petitioners, which include three licensed MMJ businesses and a cannabis advocate, claim that the new fees should have been approved by a three-fourths majority of lawmakers under the state constitution. They also argue that the law is unconstitutional because it was passed during the last five days of a legislative session, which is prohibited for revenue-generating bills.

The fee changes were introduced through House Bill 2179, signed into law by Governor Kevin Stitt in May 2022. The law, effective since June 1, 2023, replaced the previous flat rate of $2,500 for licensed growers with a graduated fee structure based on the total square footage of cultivation. As a result, fees can now reach as high as $50,000.

Jeb Green, founder of Oklahomans for Responsible Cannabis Action and one of the petitioners, emphasized that Oklahoma’s medical marijuana program has been financially positive since its inception, contributing hundreds of millions of dollars in revenue over the past five years. He argued that the fee increases imposed on the industry are unnecessary to support regulation.

The outcome of the petition will be determined by the state Supreme Court, which will consider the arguments presented by the petitioners and make a ruling on the constitutionality of the fee increase.