The Legislative Rules Review Committee is approving an increased fee on medical marijuana registration certificates.
In a 4-1 vote, the Rules Review Committee approved a nearly $4,000 increase to the annual fee to hold a medical marijuana business license.
Actual medical marijuana cardholders far exceed initial projections. The state expected 6,000 by 2024. As of July, that number was about 13,000 cardholders. That’s why the Department of Health asked the Rules Review Committee to amend a law from 2021 that put the fee at $5,310.
The new approved fee costs businesses $9,000.
Emily Kerr is the Program Administrator for the DOH Medical Cannabis Program. She said the increase helps the department fulfill its legal responsibilities.
“Those require thorough review of initial annual renewal applications providing technical guidance and customer service, as well as our inspection program to investigate complaints, make sure that we are getting in there, at least annually if not more, to be on the ground and take a look at these establishments. And that requires manpower and department resources to be able to properly implement to carry out our charge under state law and administrative rule,” Kerr said.
The DOH said as of July this year the state boasts 68 open certified dispensaries, 35 cultivation establishments,18 manufacturing establishments, and 2 independent testing labs.
The department projects the approved fee will bring in nearly $350,000 next year and nearly $500,000 the year after that, which Kerr said is being put towards those upkeeps.
Sen. Jim Mehlhaff serves on the committee and the medical marijuana oversight board. He spoke in support of passing the amendment.
"The industry is in support of the increase, not necessarily loving it, but understanding it and not resisting it,” Mehlhaff said.
Cardholder fees are not impacted by the rule change.
