Florida Medical Cannabis Company Challenges State Over Licensing Fee Spike

NEW YORK — Sanctuary Cannabis, a player in Florida’s medical cannabis industry, has initiated legal proceedings against the state, challenging a dramatic rise in biennial licensing fees. Under Governor Ron DeSantis’ administration, the fees escalated from $60,000 to a staggering $1.33 million in December.

The suit criticizes the fee increase as “exponential” and contends it is unjustifiable given the substantial revenue Florida already generates from patient and business registration fees, as reported by the News Service of Florida.

Financial reports from the state Health Department, which regulates the medical cannabis sector, indicate earnings of $14.9 million in application and renewal fees for licenses, alongside nearly $65 million from patients and caregivers in the fiscal year 2022-2023, ending in June. Additionally, fines and testing lab fees related to the cannabis industry contributed approximately $84 million to the department’s coffers for the same fiscal year, with projections of cannabis-related revenues surging to $114 million for 2024-2025.

As of November 3, Florida has 855,267 active medical cannabis patients, each paying a $75 registration fee, highlighting the substantial income from the sector.

Sanctuary Cannabis alleges in its lawsuit that the state’s Health Department chose the new license fee arbitrarily, without proper financial grounds, especially considering the department reported a $16.3 million surplus for the 2022-2023 fiscal year.

The lawsuit underscores the company’s stance: “In light of the department’s own income and projections, the department cannot reasonably assert that this exponential renewal fee increase is necessary to keep its operations afloat.”

Governor DeSantis, a Republican and a potential candidate for the 2024 presidential nomination, has previously expressed intentions to impose higher charges on medical cannabis companies, remarking last year that the state “should charge these people more.”