TALLAHASSEE — A Florida appeals court has upheld a state rule requiring medical marijuana companies to pay substantially increased fees to renew their operating licenses, rejecting a legal challenge from Sanctuary Cannabis.

The decision by the First District Court of Appeal affirms a 2023 ruling by an administrative law judge, siding with the Florida Department of Health on the controversial fee structure, according to the March 26 decision, authored by Chief Judge Timothy Osterhaus.

In a unanimous ruling, a three-judge panel determined that the Department of Health acted within its authority when it established the fee formula, which raised biennial license renewal costs for medical marijuana treatment centers (MMTCs) from $60,000 to approximately $1.3 million.