HLS 14RS-750 ORIGINAL Page 1 of 19 CODING: Words in struck through type are deletions from existing law; words underscored are additions. Regular Session, 2014 HOUSE BILL NO. 720 BY REPRESENTATIVES HONORE AND BADON AND SENATOR MI LLS CONTROLLED SUBSTANCES: Authorizes the use of medical marijuana in Louisiana AN ACT1 To amend and reenact Part X-E of Chapter 4 of Title 40 of the Louisiana Revised Statutes2 of 1950, to be comprised of R.S. 40:1046.1 through 1046.16, relative to the3 therapeutic use of marijuana; to enact the Louisiana Therapeutic Use of Marijuana4 Act; to provide for the authority to prescribe therapeutic marijuana; to provide for5 the dispensing of therapeutic marijuana; to provide for definitions; to create the6 Therapeutic Marijuana Utilization Review Board; to provide for the powers and7 duties of the board; to provide for the composition of the board; to provide for8 rulemaking; to create the Louisiana Therapeutic Use of Marijuana Fund; to provide9 for suitability to obtain a license to prescribe, dispense, or produce therapeutic10 marijuana; to provide standards and criteria for a therapeutic marijuana treatment11 facility; to provide for limitations on the number of therapeutic marijuana treatment12 facilities and production facilities; to provide standards and criteria for therapeutic13 marijuana producers and production facilities; to provide for exemptions from14 certain criminal provisions; to provide for application and licensing fees; to provide15 for applicability; to provide for the qualifications and licensing of physicians to16 prescribe therapeutic marijuana; to provide for the qualifications and licensing of17 therapeutic marijuana production facilities, therapeutic marijuana producers, and18 therapeutic marijuana dispensers; and to provide for related matters.19 Be it enacted by the Legislature of Louisiana:20 HLS 14RS-750 ORIGINAL HB NO. 720 Page 2 of 19 CODING: Words in struck through type are deletions from existing law; words underscored are additions. Section 1. Part X-E of Chapter 4 of Title 40 of the Louisiana Revised Statutes of1 1950, comprised of R.S. 40:1046.1 through 1046.16, is hereby amended and reenacted to2 read as follows: 3 PART X-E. THERAPEUTIC USE OF MARIJUANA4 §1046. Prescription of marijuana for therapeutic use; rules and regulations;5 secretary of health and hospitals6 A. Notwithstanding any other provision of this Part, a physician licensed to7 practice medicine in this state and who is also registered to prescribe Schedule I8 substances with the Drug Enforcement Administration may prescribe marijuana,9 tetrahydrocannabinols, or a chemical derivative of tetrahydrocannabinols for10 therapeutic use by patients clinically diagnosed as suffering from glaucoma,11 symptoms resulting from the administration of chemotherapy cancer treatment, and12 spastic quadriplegia in accordance with rules and regulations promulgated by the13 secretary of health and hospitals and in accordance with FDA and DEA14 administrative guidelines for procurement of the controlled substance from the15 National Institute on Drug Abuse.16 B. The secretary of health and hospitals, by January 1, 1992, shall17 promulgate rules and regulations, authorizing physicians licensed to practice in this18 state to prescribe marijuana for therapeutic use by patients as described in Subsection19 A of this Section.20 §1046.1. Short title21 This Part may be referred to and cited as the "Louisiana Therapeutic Use of22 Marijuana Act".23 §1046.2. Legislative findings24 A. The Louisiana Uniform Controlled Dangerous Substances Law was25 enacted by Act No. 634 of the 1972 Regular Session of the Legislature.26 B. Since 1978, the Louisiana Legislature enacted three Acts authorizing the27 use of marijuana for medical purposes: Act No. 725 of the 1978 Regular Session,28 HLS 14RS-750 ORIGINAL HB NO. 720 Page 3 of 19 CODING: Words in struck through type are deletions from existing law; words underscored are additions. Act No. 800 of the 1981 Regular Session, and Act No. 874 of the 1991 Regular1 Session.2 C. The therapeutic use of marijuana has been authorized by Louisiana law3 since 1991, but Act 874 of that year failed to provide a mechanism to facilitate the4 dispensing or the purchasing of marijuana even though it could be prescribed under5 limited circumstances.6 D. In an effort to provide for the maximum health opportunities for7 Louisiana citizens with certain qualifying illnesses and who are without therapeutic8 options, while at the same time ensuring the safety and welfare of Louisiana citizens,9 the Louisiana Legislature enacts the provisions of this Part.10 §1046.3. Definitions11 (1) "Board" means the Therapeutic Marijuana Utilization Review Board.12 (2) "Bona fide physician-patient relationship" means a relationship in which13 the physician has ongoing responsibility for the assessment, care, and treatment of14 a patient's qualifying medical condition.15 (3) "Physician" means a person licensed to practice medicine in the state of16 Louisiana who is a certified neurologist, oncologist, or ophthalmologist with whom17 the patient has a bona fide physician-patient relationship and who is the physician18 responsible for the ongoing treatment of a patient's debilitating medical condition;19 provided, however, that such ongoing treatment shall not be limited to the provision20 of authorization for a patient to use therapeutic marijuana or consultation solely for21 that purpose.22 (4) "Qualifying medical condition" means one of the following conditions,23 if resistant to conventional medical therapy: a seizure disorder, including epilepsy,24 multiple sclerosis, glaucoma, severe nausea or vomiting resulting from the25 administration of chemotherapy, or terminal cancer.26 (5) "Qualifying patient" means a resident of this state who is at least twenty-27 one years of age and who suffers from a qualifying medical condition and has been28 HLS 14RS-750 ORIGINAL HB NO. 720 Page 4 of 19 CODING: Words in struck through type are deletions from existing law; words underscored are additions. provided with a prescription for therapeutic marijuana by a physician who has a bona1 fide physician-patient relationship with that patient.2 (6) "Therapeutic marijuana" means all parts of plants of the genus Cannabis,3 whether growing or not; the seeds thereof; the resin extracted from any part of such4 plant; and every compound, manufacture, salt, derivative, mixture, or preparation of5 such plant, its seeds or resin, but shall not include the mature stalks of such plant,6 fiber produced from such stalks, oil, or cake made from the seeds of such plant, any7 other compound, manufacture, salt, derivative, mixture, or preparation of such8 mature stalks (except the resin extracted therefrom), fiber, oil, or cake, or the9 sterilized seed of such plant which is incapable of germination.10 (7) "Therapeutic marijuana treatment center" means a Louisiana licensed11 pharmacy which has been issued a license pursuant to the provisions of this Part to12 perform activities necessary to provide qualifying patients with usable therapeutic13 marijuana and related paraphernalia in accordance with the provisions of this Part.14 This term shall include the pharmacy's owner and employees.15 (8) "Therapeutic use of marijuana" means the acquisition, possession,16 transport, or use of therapeutic marijuana or paraphernalia by a qualifying patient as17 authorized by this Part.18 §1046.4. Prescription for therapeutic marijuana; limitations19 A. Notwithstanding the provisions of R.S. 40:964 et seq., or any other20 provisions of law to the contrary, a physician as defined in this Part may prescribe21 therapeutic marijuana, tetrahydrocann abinols, or a chemical derivative of22 tetrahydrocannabinols for therapeutic use as authorized by the provisions of this Part23 if all of the following occur:24 (1) The physician is a certified neurologist, oncologist, or ophthalmologist25 licensed to practice medicine in Louisiana.26 (2) The physician is registered to prescribe controlled dangerous substances27 with the United States Drug Enforcement Administration.28 HLS 14RS-750 ORIGINAL HB NO. 720 Page 5 of 19 CODING: Words in struck through type are deletions from existing law; words underscored are additions. (3) The physician has obtained a license to prescribe therapeutic marijuana1 as provided for by this Part.2 (4) The physician has a bonafide physician-patient relationship with a patient3 who suffers from a qualifying medical condition and the physician determines that4 therapeutic marijuana is the best treatment option for that patient.5 B. The prescriptive authority granted by the provisions of this Part shall only6 extend to certified neurologists, oncologists, and ophthalmologists as provided for7 by the provisions of this Part.8 C. Therapeutic marijuana shall only be prescribed by physicians to9 qualifyin g patients for the treatment of a qualifying medical condition as provided10 for by the provisions of this Part.11 §1046.5. Therapeutic Marijuana Utilization Review Board; creation; membership12 A. The Therapeutic Marijuana Utilization Review Board is hereby created13 within the Department of Health and Hospitals.14 B. The board shall consist of the following members:15 (1) The state health officer who shall serve as chairman.16 (2) The commissioner of the Department of Agriculture and Forestry who17 shall serve as vice chairman.18 (3) The secretary of the Department of Health and Hospitals or his designee.19 (4) The executive director of the Louisiana Board of Pharmacy.20 (5) The executive director of the Louisiana State Board of Medical21 Examiners.22 (6) The chairman of the Senate Committee on Health and Welfare or his23 designee.24 (7) The chairman of the House Committee on Health and Welfare or his25 designee.26 (8) The president of the Louisiana State Medical Society or his designee.27 (9) The director of the Louisiana State Police Crime Laboratory or his28 designee.29 HLS 14RS-750 ORIGINAL HB NO. 720 Page 6 of 19 CODING: Words in struck through type are deletions from existing law; words underscored are additions. (10) Two members appointed by the governor.1 C. Members of the board shall serve without compensation.2 D. The Department of Health and Hospitals shall provide the staff and3 facilities needed by the board to accomplish its duties as provided in this Part.4 §1046.6. Powers and duties of the board5 A. The board shall:6 (1) Work in conjunction with the commissioner of the Department of7 Agriculture and Forestry, the Louisiana Board of Pharmacy, and the Louisiana Board8 of Medical Examiners to facilitate the necessary licensing to prescribe, produce, and9 dispense therapeutic marijuana in Louisiana. This shall include accepting and10 approving the recommendations for licensing by the entities provided for in R.S.11 40:1046.8.12 (2) Meet at least quarterly and may meet upon the call of the chairman or any13 three members. Meetings of the board shall be open to the public in accordance with14 law.15 (3) Review and establish standards, procedures, and protocols for16 determining the amounts of therapeutic marijuana that may be reasonably necessary17 to ensure uninterrupted availability for a period of one month for qualifying patients,18 including amounts for topical treatments.19 (4) Prepare and submit electronically an annual report to the legislature and20 the governor regarding the therapeutic use of marijuana in the state of Louisiana.21 The report shall include at a minimum:22 (a) Recommendations for all needed changes in the law regarding the23 therapeutic use of marijuana in Louisiana.24 (b) A complete report on the receipt and expenditure of all funds received.25 (c) Comprehensive data regarding the number of qualifying patients,26 therapeutic marijuana treatment centers, producers, production facilities, physicians,27 and dispensers, and the quantities of marijuana which has been prescribed for28 therapeutic use as provided for by this Part.29 HLS 14RS-750 ORIGINAL HB NO. 720 Page 7 of 19 CODING: Words in struck through type are deletions from existing law; words underscored are additions. (5) Perform other duties related to the therapeutic use of marijuana upon the1 request of the governor or legislature.2 (6) Establish and modify, as necessary, a plan of organization to administer3 the provisions of this Part efficiently and thoroughly.4 (7) Analyze and review investigative and audit reports and findings.5 (8) Issue a written response to any formal request from the governor and the6 legislature or any committee thereof.7 (9) Appear before any committee of the legislature upon request of the8 president of the Senate, the speaker of the House, or the chairman of any legislative9 committee.10 (10) Review and make recommendations for the approval of the medical11 conditions to be added to the list of qualifying medical conditions that qualify for the12 therapeutic use of marijuana.13 (11) Work in conjunction with the Louisiana State Police Crime Laboratory14 to develop procedures for testing therapeutic marijuana samples for levels of15 tetrahydrocannabinol (THC) or other testing parameters deemed appropriate by the16 board.17 (12) Maintain a list of all physicians, therapeutic marijuana treatment18 centers, therapeutic marijuana dispensers, therapeutic marijuana producers, and19 therapeutic marijuana production facilities licensed in Louisiana pursuant to the20 provisions of this Part.21 B. The board shall adopt rules pursuant to the Administrative Procedure Act.22 Rules of the board shall be subject to legislative oversight and review. The23 legislative review of the rules shall be conducted by the Senate Committee on Health24 and Welfare and the House Committee on Health and Welfare.25 C. The rules adopted pursuant to Subsection B of this Section shall include26 but shall not be limited to the following:27 (1) Standards, procedures, and protocols for the effective use of therapeutic28 marijuana as authorized by the provisions of this Part.29 HLS 14RS-750 ORIGINAL HB NO. 720 Page 8 of 19 CODING: Words in struck through type are deletions from existing law; words underscored are additions. (2) Standards, procedures, and protocols for the production, prescribing, and1 dispensing of therapeutic marijuana in Louisiana.2 (3) Procedures and protocols to provide that no therapeutic marijuana may3 be dispensed from, produced from, obtained from, sold to, or transferred to a location4 outside of this state.5 (4) A description of the areas in this state where therapeutic marijuana6 treatment centers shall not be located.7 (5) Health, safety, and security requirements for therapeutic marijuana8 treatment centers, and therapeutic marijuana production facilities which may include9 but are not limited to:10 (a) The ability to maintain adequate control against the diversion, theft, and11 loss of therapeutic marijuana acquired or possessed by the treatment center or12 production facility.13 (b) The ability to maintain the knowledge, understanding, judgment,14 procedures, security controls, and ethics to ensure optimal safety and accuracy in the15 production, dispensing, and use of therapeutic marijuana.16 (6) The establishment of standards and procedures for the revocation,17 suspension, and nonrenewal of licenses issued pursuant to this Part.18 (7) The establishment of standards and procedures for the denial of licenses19 authorized pursuant to this Part.20 (8) The establishment of other licensing, renewal and operational standards21 deemed necessary by the board.22 (9) The establishment of standards, procedures, and protocols for23 determining the amount of usable therapeutic marijuana that is necessary to24 constitute an adequate supply to ensure uninterrupted availability for a period of one25 month, including amounts for topical treatments.26 (10) The development of a distribution system for therapeutic marijuana use27 that provides for both of the following:28 HLS 14RS-750 ORIGINAL HB NO. 720 Page 9 of 19 CODING: Words in struck through type are deletions from existing law; words underscored are additions. (a) Therapeutic marijuana production facilities within this state that are1 housed on secured grounds and operated by licensed producers.2 (b) The distribution of marijuana for therapeutic use to qualifying patients3 by therapeutic marijuana treatment centers.4 (11) Procedures and protocols to provide that no producer may cultivate5 marijuana for therapeutic use outside of Louisiana and to designate permissible6 locations for licensed producers in Louisiana.7 (12) The establishment of financial requirements for applicants of8 therapeutic marijuana production facilities, producers, and treatment centers under9 which each applicant demonstrates the following:10 (a) The financial capacity to build and operate a therapeutic marijuana11 production facility or treatment center.12 (b) The ability to maintain an escrow account in a financial institution in13 Louisiana in an amount of two million dollars, if required by the board.14 (13) The establishment of health, safety, and security requirements for15 licensed producers, and production facilities which shall include but shall not be16 limited to a requirement that the applicant demonstrate all of the following:17 (a) The ability to maintain adequate control against the diversion, theft, and18 loss of therapeutic marijuana produced at that production facility.19 (b) The ability to cultivate pharmaceutical grade marijuana for therapeutic20 use in a secure indoor facility.21 (14) The establishment of standards, procedures, and protocols to ensure that22 all therapeutic marijuana produced and distributed at a therapeutic marijuana23 treatment center as authorized by the provisions of this Part is consistently24 pharmaceutical grade.25 (15) The establishment of standards and procedures for the revocation,26 suspension, and nonrenewal of licenses, provided the standards and procedures are27 consistent with the provisions this Part.28 HLS 14RS-750 ORIGINAL HB NO. 720 Page 10 of 19 CODING: Words in struck through type are deletions from existing law; words underscored are additions. (16) The establishment of other licensing, renewal, and operational standards1 which are deemed necessary by the board.2 (17) The establishment of standards, procedures, and protocols for the3 development of a Radio Frequency Identification (RFID) system, or Global4 Positioning System (GPS), or an equivalent inventory tracking program for the5 tracking of therapeutic marijuana.6 (18) The establishment of standards, procedures, for testing therapeutic7 marijuana samples for levels of tetrahydrocannabinol (THC) or other testing8 parameters deemed appropriate by the board.9 §1046.7. Louisiana Therapeutic Use of Marijuana Fund10 A. The Louisiana Therapeutic Use of Marijuana Fund, hereinafter referred11 to as the "fund", is hereby created in the state treasury. Interest earned on the12 investment of monies in the fund shall be deposited in and credited to the fund.13 Unexpended and unencumbered monies in the fund at the close of each fiscal year14 shall remain in the fund. Monies in the fund shall be appropriated, administered, and15 used solely and exclusively for purposes of this Part.16 B. The fund shall be comprised of all fines, fees, and other monies17 appropriated, donated, or otherwise made available to provide funding for the18 provisions of the Louisiana Therapeutic Use of Marijuana Act. All of such monies19 required to be deposited in the state treasury in accordance with Article VII, Section20 9(A) of the Constitution of Louisiana shall be deposited in the fund after first21 meeting the requirements of Article VII, Section 9(B) of the Constitution of22 Louisiana relative to the Bond Security and Redemption Fund.23 C. Monies in the fund shall be appropriated and used solely and exclusively24 to provide for the implementation of the provisions of this Part.25 D. The fund shall be administered by the board as authorized by the26 provisions of this Part. The board is hereby authorized to establish such accounts or27 sub-accounts within the fund as deemed necessary to comply with the provisions of28 the Louisiana Therapeutic Use of Marijuana Act. The board shall not comingle the29 HLS 14RS-750 ORIGINAL HB NO. 720 Page 11 of 19 CODING: Words in struck through type are deletions from existing law; words underscored are additions. monies in the fund established in this Section with any other monies or funds of the1 board for any reason.2 E. The Department of Agriculture and Forestry, the Louisiana Board of3 Medical Examiners, and the Louisiana Board of Pharmacy shall be reimbursed for4 any expenses those departments incur for the investigation and licensing functions5 they perform as provided for by this Part.6 §1046.8. Suitability for licensing; qualifications for licensing7 A. No person shall be eligible to obtain any license or obtain any other8 approval pursuant to the provisions of this Part unless the applicant has demonstrated9 by clear and convincing evidence that he is suitable as provided in this Section.10 B. To be suitable, an applicant shall be:11 (1) A resident of the state.12 (2) Twenty-one years of age or older.13 (3) A person of good character, honesty, and integrity.14 (4) A person whose prior activities, criminal record, if any, reputation,15 habits, and associations do not pose a threat to the public interest of this state or to16 the effective regulation and the use of therapeutic marijuana.17 (5) A person who is capable of and likely to conduct the activities for which18 the applicant is licensed. This shall include the financial capability to conduct the19 activities for which the applicant is licensed.20 (6) A person who does not owe the state or any local governing authority or21 any municipality any delinquent sales taxes, penalties, or interest, excluding items22 under formal appeal or protest as provided by law.23 (7) A person who agrees in writing to hold harmless and indemnify the24 licensing authority, the state, or the board for any and all liability arising out of the25 issuance of the license authorized pursuant to this Part.26 (8) A person who is not disqualified pursuant to the provisions of Subsection27 C of this Section.28 HLS 14RS-750 ORIGINAL HB NO. 720 Page 12 of 19 CODING: Words in struck through type are deletions from existing law; words underscored are additions. C. No licensing authority provided for by this Part shall issue a license to any1 person who is disqualified on the basis of the following criteria:2 (1) The conviction or a plea of guilty or nolo contendere by the applicant or3 any person required to be suitable under the provisions of this Part for any of the4 following:5 (a) Any offense punishable by imprisonment of more than one year.6 (b) Any offense involving a controlled dangerous substance.7 (c) A crime of violence as defined in R.S. 14:2(B) or a sex offense as defined8 in R.S. 15:141.9 (2) There is a current prosecution or pending charge against the person in10 any jurisdiction for any offense listed in Paragraph (1) of this Subsection.11 (3) The person is not current in filing all applicable tax returns and in the12 payment of all taxes, penalties, and interest owed to the state of Louisiana or any13 political subdivision of Louisiana, excluding items under formal appeal.14 (4) The failure to provide information and documentation to reveal any fact15 material to a suitability determination, or the supplying of information which is16 untrue or misleading as to a material fact pertaining to the suitability criteria.17 §1046.9. License applications; licensing authority18 A. An application for any license as authorized by the provisions of this Part19 shall be made to the respective licensing authorities on forms furnished by those20 authorities.21 B. The licenses provided for by this Part shall be issued for a term of two22 years by the following licensing authorities:23 (1) A therapeutic marijuana treatment center license shall be issued by the24 Louisiana Board of Pharmacy.25 (2) A therapeutic marijuana dispensing agent license shall be issued by the26 Louisiana Board of Pharmacy.27 (3) A license to prescribe therapeutic marijuana shall be issued by the28 Louisiana Board of Medical Examiners.29 HLS 14RS-750 ORIGINAL HB NO. 720 Page 13 of 19 CODING: Words in struck through type are deletions from existing law; words underscored are additions. (4) A therapeutic marijuana production facility license shall be issued by the1 commissioner of the Department of Agriculture and Forestry.2 (5) A therapeutic marijuana producer license shall be issued by the3 commissioner of the Department of Agriculture and Forestry.4 §1046.10. Licensing fees5 A. License application fees shall be as follows:6 (1) Therapeutic marijuana treatment facility..................$5,0007 (2) Therapeutic marijuana production facility...............$10,0008 (3) Therapeutic marijuana producer........................$2,0009 (4) Physician license to prescribe therapeutic marijuana..........$25010 (5) Pharmacist license to function as therapeutic marijuana dispenser$20011 B. The fees shall be deposited into the Louisiana Therapeutic Use of12 Marijuana Fund and shall be used to reimburse the respective licensing authorities13 for expenses incurred for the issuance of licenses as provided for by this Part.14 C. Fees for the renewal of licenses shall be as follows:15 (1) Therapeutic marijuana treatment facility..................$2,50016 (2) Therapeutic marijuana production facility................$5,00017 (3) Therapeutic marijuana producer........................$1,00018 (4) Physician license to prescribe therapeutic marijuana..........$17519 (5) Pharmacist license to function as therapeutic marijuana dispenser$10020 §1046.11. Qualifications for physician licensing to prescribe therapeutic marijuana21 The Louisiana Board of Medical Examiners shall issue a license to prescribe22 therapeutic marijuana to a qualified physician upon satisfaction of all of the23 following criteria:24 (1) The physician has been certified as a neurologist, oncologist, or25 opthamologist.26 (2) The physician meets the suitability requirements as provided for in R.S.27 40:1046.7.28 HLS 14RS-750 ORIGINAL HB NO. 720 Page 14 of 19 CODING: Words in struck through type are deletions from existing law; words underscored are additions. (3) The physician holds a current and unrestricted license in good standing1 to practice medicine issued by the Louisiana State Board of Medical Examiners.2 (4) The physician holds a controlled dangerous substance permit issued by3 the Louisiana Board of Pharmacy.4 (5) The physician holds a controlled dangerous substance permit and5 registration issued by the state and the United States Drug Enforcement Agency.6 (6) The physician is in compliance with any criteria established by rules7 adopted by the Therapeutic Marijuana Utilization Review Board.8 (7) The physician has paid any application or licensing fees as provided for9 by the provisions of this Part.10 §1046.12. Qualifications for licensing of therapeutic marijuana dispensing agent11 The Louisiana Board of Pharmacy shall issue a license to dispense12 therapeutic marijuana to a qualified pharmacist upon satisfaction of all of the13 following criteria:14 (1) The pharmacist meets the suitability requirements as provided for in R.S.15 40:1046.7.16 (2) The pharmacist is a resident of this state for not less than six months.17 (3) The pharmacist is currently licensed to engage in the practice of18 pharmacy in this state.19 (4) The pharmacist is actively engaged in the practice of pharmacy in this20 state and is employed by, or is the owner of, a therapeutic marijuana treatment21 center.22 (5) The pharmacist has at least five years of experience in the practice of23 pharmacy in this state.24 (6) The pharmacist is in compliance with any criteria established by rules25 adopted by the Therapeutic Marijuana Utilization Review Board.26 (7) The pharmacist has paid any application or licensing fees as provided for27 by the provisions of this Part.28 HLS 14RS-750 ORIGINAL HB NO. 720 Page 15 of 19 CODING: Words in struck through type are deletions from existing law; words underscored are additions. §1046.13. Therapeutic marijuana treatment facility; number of facilities; permit1 requirements2 A. The Louisiana Board of Pharmacy shall issue a license to an applicant to3 operate a therapeutic marijuana treatment facility upon satisfaction of all of the4 following criteria:5 (1) The owner of the facility meets the suitability requirements as provided6 for in R.S. 40:1046.7.7 (2) The facility employs a therapeutic marijuana dispensing agent who is a8 pharmacist licensed by the Louisiana Board of Pharmacy and also has been issued9 a current and valid license to dispense therapeutic marijuana pursuant to the10 provisions of R.S. 40:1046.11 (3) The therapeutic marijuana treatment facility is a pharmacy in good12 standing and has been issued a pharmacy permit from the Louisiana Board of13 Pharmacy.14 (4) The owner of the therapeutic marijuana treatment facility is the holder15 of a valid and current controlled dangerous substances permit issued by the16 Louisiana Board of Pharmacy.17 (5) The facility is in compliance with any criteria established by rules18 adopted by the Therapeutic Marijuana Utilization Review Board.19 (6) The applicant has paid any application or licensing fees as provided for20 by the provisions of this Part.21 B. There shall be a maximum of ten therapeutic marijuana treatment22 facilities in the state of Louisiana. One facility shall be located in each human23 services district as provided for in R.S. 28:912(B).24 §1046.14. Therapeutic marijuana production facilities; number of facilities25 A. The commissioner of the Department of Agriculture and Forestry shall26 issue a license to an applicant to operate a therapeutic marijuana production facility27 upon satisfaction of all of the following criteria:28 HLS 14RS-750 ORIGINAL HB NO. 720 Page 16 of 19 CODING: Words in struck through type are deletions from existing law; words underscored are additions. (1) The owner of the facility meets the suitability requirements as provided1 for in R.S. 40:1046.7.2 (2) The owner of the facility demonstrates the financial capacity to build and3 operate a therapeutic marijuana production facility.4 (3) The owner of the facility demonstrates the ability to maintain an escrow5 account in a financial institution in Louisiana in an amount of two million dollars if6 required by the board.7 (4) The owner of the facility demonstrates all of the following:8 (a) The ability to maintain adequate control against the diversion, theft, and9 loss of therapeutic marijuana produced at that production facility.10 (b) The ability to cultivate pharmaceutical grade marijuana for therapeutic11 use in a secure indoor facility.12 (c) The ability to produce and cultivate therapeutic marijuana with a13 guaranteed tetrahydrocannabinol (THC) percentage level as established by the board.14 (d) The ability to provide for secured inventory and computer inventory15 tracking of all therapeutic marijuana produced at that facility.16 (5) The owner of the facility establishes standards and protocols to ensure17 that all therapeutic marijuana produced and distributed at a therapeutic marijuana18 treatment center as authorized by the provisions of this Part is consistently19 pharmaceutical grade.20 B. There shall be a maximum of six marijuana production facilities in the21 state, one for each congressional district.22 §1046.15. Exemption from criminal prosecution23 A. No patient who has a prescription for therapeutic marijuana shall be24 arrested or prosecuted for possession of marijuana in violation of R.S. 40:966(E) if25 the patient is in possession of the marijuana pursuant to the provisions of this Part.26 B. No therapeutic marijuana dispenser, therapeutic marijuana producer, or27 any employee of a therapeutic marijuana treatment facility or therapeutic marijuana28 production facility shall be prosecuted for the production, manufacturing, dispensing29 HLS 14RS-750 ORIGINAL HB NO. 720 Page 17 of 19 CODING: Words in struck through type are deletions from existing law; words underscored are additions. or distributing marijuana or possession with intent to produce, manufacture, dispense1 or distribute marijuana in violation of R.S. 40:966(A) if the dispensing agent or the2 employee is in the course and scope of his employment and in compliance with the3 provisions of this Part.4 C. The provisions of this Section shall not be construed to exempt a5 therapeutic marijuana dispenser, producer, or employee of a therapeutic marijuana6 treatment facility or production facility from any criminal provisions provided for7 in the Uniform Controlled Dangerous Substances Act or in any other provision of8 law if the dispenser, producer, or their employees are not in compliance with the9 provisions of this Part and the activity is directly related to the course and scope of10 their duties as provided by this Part.11 §1046.16. Therapeutic marijuana not covered by health insurance12 The provisions of this Part shall not be construed to require any insurance13 company, health maintenance organization, or any other health insurance issuer to14 cover, reimburse, or provide for any costs associated with the expenses of obtaining15 therapeutic marijuana or any items, services, supplies, or paraphernalia related to the16 use of therapeutic marijuana as authorized by the provisions of this Part.17 Section 2. No license shall be issued as authorized by the provisions of this Part until18 the Louisiana Therapeutic Utilization Review Board has adopted all rules required to19 implement the provisions of this Part. 20 Section 3. The provisions of this Act shall be effective on January 1, 2015.21 DIGEST The digest printed below was prepared by House Legislative Services. It constitutes no part of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)] Honore HB No. 720 Abstract: Authorizes the production, prescribing, and distribution of therapeutic marijuana in Louisiana. Present law authorizes the prescribing of therapeutic marijuana for certain medical conditions. Proposed law deletes present law. HLS 14RS-750 ORIGINAL HB NO. 720 Page 18 of 19 CODING: Words in struck through type are deletions from existing law; words underscored are additions. Proposed law provides that a physician as defined may prescribe therapeutic marijuana, tetrahydrocannabinols, or a chemical derivative of tetrahydrocannabinols for therapeutic use if all of the following occur: (1)The physician is a certified neurologist, oncologist, or opthalmologist licensed to practice medicine in Louisiana. (2)The physician is registered to prescribe controlled dangerous substances with the DEA. (3)The physician has obtained a license to prescribe therapeutic marijuana. (4)The physician has a bonafide physician-patient relationship with a patient who suffers from a qualifying medical condition and the physician determines that therapeutic marijuana is the best treatment option for that patient. Proposed law provides that the prescriptive authority shall only extend to certified neurologists, oncologists, and opthalmologists and shall only be prescribed for the treatment of a qualifying medical condition. Proposed law creates the Therapeutic Marijuana Utilization Review Board and provides for its membership. Proposed law provides that the board shall have rulemaking authority and shall work in conjunction with the commissioner of the Dept. of Agriculture and Forestry, the Louisiana Board of Pharmacy, and the Louisiana Board of Medical Examiners to facilitate the necessary licensing to prescribe, produce, and dispense therapeutic marijuana in Louisiana. Proposed law provides that the Dept. of Health and Hospitals shall supply staffing and facilities to assist the board in administering the provisions of proposed law. Proposed law establishes criteria and licensing qualifications for therapeutic marijuana dispensers, therapeutic marijuana treatment facilities, therapeutic marijuana producers, therapeutic marijuana production facilities, and physicians licensed to prescribe therapeutic marijuana and authorizes the board to develop the policies to implement proposed law through the adoption of rules. Proposed law provides that the House and Senate committees on health and welfare shall have oversight over rules adopted by the Therapeutic Marijuana Utilization Review Board. Proposed law provides that the applicant for any license must be determined to be suitable which means that the applicant is: (1)A resident of the state. (2)21 years of age or older. (3)A person of good character, honesty, and integrity. (4)A person whose prior activities, criminal record, if any, reputation, habits, and associations do not pose a threat to the public interest. (5)A person who is capable of and likely to conduct the activities for which the applicant is licensed. (6)A person who does not owe the state or any local governing authority or any municipality any delinquent sales taxes, penalties, or interest. HLS 14RS-750 ORIGINAL HB NO. 720 Page 19 of 19 CODING: Words in struck through type are deletions from existing law; words underscored are additions. (7)A person who agrees in writing to hold harmless and indemnify the licensing authority, the state, or the board for any and all liability arising out of the issuance the license. (8)A person who is not disqualified. Proposed law provides that a person will be disqualified from obtaining a license based upon any of the following: (1)The conviction or a plea of guilty or nolo contendere by the applicant for any offense punishable by imprisonment of more than one year, any offense involving a controlled dangerous substance, or a crime of violence or a sex offense. (2)The person is not current in filing all applicable tax returns and in the payment of all taxes, penalties, and interest owed to the state of Louisiana or any political subdivision of Louisiana, excluding items under formal appeal. (3)The failure to provide information and documentation to reveal any fact material to a suitability determination, or the supplyi ng of information which is untrue or misleading as to a material fact pertaining to the suitability criteria. Provides that the licenses provided for by proposed law shall be issued by the following licensing authorities: (1)A therapeutic marijuana treatment center license shall be issued by the Louisiana Board of Pharmacy. (2)A therapeutic marijuana dispensing agent license shall be issued by the Louisiana Board of Pharmacy. (3)A license to prescribe therapeutic marijuana shall be issued by the Louisiana Board of Medical Examiners. (4)A therapeutic marijuana production facility license shall be issued by the commissioner of the Dept. of Agriculture and Forestry. (5)A therapeutic marijuana producer license shall be issued by the commissioner of the Dept. of Agriculture and Forestry. Proposed law provides for the creation of the Louisiana Therapeutic Use of Marijuana Fund. Provides that the fund shall be administered by the board. Proposed law provides that the Dept. of Agriculture and Forestry, the Louisiana Board of Medical Examiners, and the Louisiana Board of Pharmacy shall be reimbursed for any expenses those departments incur for the investigation and licensing functions. Proposed law provides for an exemption from prosecution if a person is in possession or producing, manufacturing, dispensing, or distributing therapeutic marijuana as authorized by proposed law. Proposed law provides that therapeutic marijuana shall not be covered by health insurance. Proposed law provides that no licenses shall be issued until all rules have been adopted. Effective January 1, 2015. (Amends R.S. 40:1046.1-1046.16)