Oklahoma Lawsuit Challenges New Medical Cannabis Operator Fees

A lawsuit has been filed in Oklahoma challenging the new law that increases fees for medical cannabis businesses in the state, KFOR reports. The law, intended to crack down on illegal medical cannabis operators in the state, took effect last month and created a tired fee schedule for industry operators from $2,500 to $50,000. 

Jed Green, a cannabis advocate and plaintiff on the lawsuit, told KFOR the law “is hitting the good guys and it’s only helping the bad guys.” 

“Fundamentally, this is a constitutional question that affects every Oklahoma taxpayer. Article five of the Constitution, states that any tax increase has to go to a vote of the people or it has to originate as a House bill [the bill did, and] it has to gain three quarter majority support in both chambers. It did not.” — Green to KFOR 

Green added that under the Oklahoma Constitution, revenue bills cannot be passed during the last five days of the legislative session – which was when the measure passed. 

“They make it harder for our legitimate operators to compete against the illicit market,” Green said. “If the goal of the state is to have our consumers purchase product[s] in a sanctioned consumer tested environment, then they have to work with us to ensure that we can compete on [a] price point against the illicit market. These fees are absolutely not needed for the regulation of this program.” 

The Oklahoma Medical Marijuana Authority did not comment on the litigation but said it expects the state’s Attorney General’s Office to represent them in the lawsuit.