SLS 14RS-578 ORIGINAL Page 1 of 19 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. Regular Session, 2014 SENATE BILL NO. 541 BY SENATOR MILLS AND REPRESENTATIVE HONORE HEALTH CARE Provides for the use of marijuana for medicinal purposes. (8/1/14) 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 1046.15 and to enact R.S.3 36:259(OO), relative to the therapeutic use of marijuana; to enact the Louisiana4 Therapeutic Use of Marijuana Act; to provide for the authority to prescribe5 therapeutic marijuana; to provide for the dispensing of therapeutic marijuana; to6 provide for definitions; to create the Therapeutic Marijuana Utilization Review7 Board; to place the Therapeutic Marijuana Utilization Review Board within the8 Department of Health and Hospitals; to provide for the powers and duties of the9 board; to provide for the composition of the board; to provide for rulemaking; to10 create the Louisiana Therapeutic Use of Marijuana Fund; to provide for suitability11 to obtain a license to prescribe, dispense, or produce therapeutic marijuana; to12 provide standards and criteria for a therapeutic marijuana treatment facility; to13 provide for limitations on the number of therapeutic marijuana treatment facilities14 and production facilities; to provide standards and criteria for therapeutic marijuana15 producers and production facilities; to provide for exemptions from certain criminal16 provisions; to provide for applicability; to provide for the qualifications and licensing17 SB NO. 541 SLS 14RS-578 ORIGINAL Page 2 of 19 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. of physicians to prescribe therapeutic marijuana; to provide for the qualifications and1 licensing of therapeutic marijuana production facilities, therapeutic marijuana2 producers, and therapeutic marijuana dispensers; and to provide for related matters.3 Be it enacted by the Legislature of Louisiana:4 Section 1. R.S. 36:259(OO) is hereby enacted to read as follows:5 §259. Transfer of agencies and functions to Department of Health and Hospitals6 * * *7 OO. The Therapeutic Marijuana Utilization Review Board (R.S.8 40:1046.5) is placed within the Department of Health and Hospitals and shall9 exercise and perform its powers, duties, functions, and responsibilities as10 provided by or pursuant to law.11 Section 2. Part X-E of Chapter 4 of Title 40 of the Louisiana Revised Statutes of12 1950, comprised of R.S. 40:1046.1 through 1046.15, is hereby amended and reenacted to13 read as follows:14 PART X-E. THERAPEUTIC USE OF MARIJUANA15 §1046. Prescription of marijuana for therapeutic use; rules and regulations;16 secretary of health and hospitals17 A. Notwithstanding any other provision of this Part, a physician licensed to18 practice medicine in this state and who is also registered to prescribe Schedule I19 substances with the Drug Enforcement Administration may prescribe marijuana,20 tetrahydrocannabinols, or a chemical derivative of tetrahydro cannabinols for21 therapeutic use by patients clinically diagnosed as suffering from glaucoma,22 symptoms resulting from the administration of chemotherapy cancer treatment, and23 spastic quadriplegia in accordance with rules and regulations promulgated by the24 secretary of health and hospitals and in accordance with FDA and DEA25 administrative guidelines for procurement of the controlled substance from the26 National Institute on Drug Abuse.27 B. The secretary of health and hospitals, by January 1, 1992, shall28 promulgate rules and regulations, authorizing physicians licensed to practice in this29 SB NO. 541 SLS 14RS-578 ORIGINAL Page 3 of 19 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. state to prescribe marijuana for therapeutic use by patients as described in Subsection1 A of this Section.2 §1046.1. Short title3 This Part may be referred to and cited as the "Louisiana Therapeutic4 Use of Marijuana Act".5 §1046.2. Legislative findings6 A. The Louisiana Uniform Controlled Dangerous Substances Law was7 enacted by Act No. 634 of the 1972 Regular Session of the Legislature.8 B. Since 1978, the Louisiana Legislature enacted three Acts authorizing9 the use of marijuana for medical purposes: Act No. 725 of the 1978 Regular10 Session, Act No. 800 of the 1981 Regular Session, and Act No. 874 of the 199111 Regular Session.12 C. The therapeutic use of marijuana has been authorized by Louisiana13 law since 1991, but Act 874 of that year failed to provide a mechanism to14 facilitate the dispensing or the purchasing of marijuana even though it could be15 prescribed under limited circumstances.16 D. In an effort to provide for the maximum health opportunities for17 Louisiana citizens with certain qualifying illnesses and who are without18 therapeutic options, while at the same time ensuring the safety and welfare of19 Louisiana citizens, the Louisiana Legislature enacts the provisions of this Part.20 §1046.3. Definitions21 As used in this Part, the following terms shall have the following22 meanings:23 (1) "Board" means the Therapeutic Marijuana Utilization Review24 Board.25 (2) "Bona fide physician-patient relationship" means a relationship in26 which the physician has ongoing responsibility for the assessment, care, and27 treatment of a patient's qualifying medical condition.28 (3) "Physician" means a person licensed to practice medicine in the state29 SB NO. 541 SLS 14RS-578 ORIGINAL Page 4 of 19 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. of Louisiana who is a certified neurologist, oncologist, or ophthalmologist with1 whom the patient has a bona fide physician-patient relationship and who is the2 physician responsible for the ongoing treatment of a patient's debilitating3 medical condition; provided, however, that such ongoing treatment shall not be4 limited to the provision of authorization for a patient to use therapeutic5 marijuana or consultation solely for that purpose.6 (4) "Qualifying medical condition" means one of the following7 conditions, if resistant to conventional medical therapy: a seizure disorder,8 including epilepsy, multiple sclerosis, glaucoma, severe nausea or vomiting9 resulting from the administration of chemotherapy, or terminal cancer.10 (5) "Qualifying patient" means a resident of this state who is at least11 twenty-one years of age and who suffers from a qualifying medical condition12 and has been provided with a prescription for therapeutic marijuana by a13 physician who has a bona fide physician-patient relationship with that patient.14 (6) "Therapeutic marijuana" means all parts of plants of the genus15 Cannabis, whether growing or not; the seeds thereof; the resin extracted from16 any part of such plant; and every compound, manufacture, salt, derivative,17 mixture, or preparation of such plant, its seeds or resin, but shall not include18 the mature stalks of such plant, fiber produced from such stalks, oil, or cake19 made from the seeds of such plant, any other compound, manufacture, salt,20 derivative, mixture, or preparation of such mature stalks (except the resin21 extracted therefrom), fiber, oil, or cake, or the sterilized seed of such plant22 which is incapable of germination.23 (7) "Therapeutic marijuana treatment center" means a Louisiana24 licensed pharmacy which has been issued a license pursuant to the provisions25 of this Part to perform activities necessary to provide qualifying patients with26 usable therapeutic marijuana and related paraphernalia in accordance with the27 provisions of this Part. This term shall include the pharmacy's owner and28 employees.29 SB NO. 541 SLS 14RS-578 ORIGINAL Page 5 of 19 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. (8) "Therapeutic use of marijuana" means the acquisition, possession,1 transport, or use of therapeutic marijuana or paraphernalia by a qualifying2 patient as authorized by this Part.3 §1046.4. Prescription for therapeutic marijuana; limitations4 A. Notwithstanding the provisions of R.S. 40:964 et seq., or any other5 provisions of law to the contrary, a physician as defined in this Part may6 prescribe therapeutic marijuana, tetrahydrocannabinols, or a chemical7 derivative of tetrahydrocannabinols for therapeutic use as authorized by the8 provisions of this Part if all of the following occur:9 (1) The physician is a certified neurologist, oncologist, or10 ophthalmologist licensed to practice medicine in Louisiana.11 (2) The physician is registered to prescribe controlled dangerous12 substances with the United States Drug Enforcement Administration.13 (3) The physician has obtained a license to prescribe therapeutic14 marijuana as provided for by this Part.15 (4) The physician has a bona fide physician-patient relationship with a16 patient who suffers from a qualifying medical condition and the physician17 determines that therapeutic marijuana is the best treatment option for that18 patient.19 B. The prescriptive authority granted by the provisions of this Part shall20 only extend to certified neurologists, oncologists, and ophthalmologists as21 provided for by the provisions of this Part.22 C. Therapeutic marijuana shall only be prescribed by physicians to23 qualifying patients for the treatment of a qualifying medical condition as24 provided for by the provisions of this Part.25 §1046.5. Therapeutic Marijuana Utilization Review Board; creation;26 membership27 A. The Therapeutic Marijuana Utilization Review Board is hereby28 created within the Department of Health and Hospitals.29 SB NO. 541 SLS 14RS-578 ORIGINAL Page 6 of 19 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. B. The board shall consist of the following members:1 (1) The state health officer who shall serve as chairman.2 (2) The commissioner of the Department of Agriculture and Forestry3 who shall serve as vice chairman.4 (3) The secretary of the Department of Health and Hospitals or his5 designee.6 (4) The executive director of the Louisiana Board of Pharmacy.7 (5) The executive director of the Louisiana State Board of Medical8 Examiners.9 (6) The chairman of the Senate Committee on Health and Welfare or his10 designee.11 (7) The chairman of the House Committee on Health and Welfare or his12 designee.13 (8) The president of the Louisiana State Medical Society or his designee.14 (9) The director of the Louisiana State Police Crime Laboratory or his15 designee.16 (10) Two members appointed by the governor.17 C. Members of the board shall serve without compensation.18 D. The Department of Health and Hospitals shall provide the staff and19 facilities needed by the board to accomplish its duties as provided in this Part.20 §1046.6. Powers and duties of the board21 A. The board shall:22 (1) Work in conjunction with the commissioner of the Department of23 Agriculture and Forestry, the Louisiana Board of Pharmacy, and the Louisiana24 Board of Medical Examiners to facilitate the necessary licensing to prescribe,25 produce, and dispense therapeutic marijuana in Louisiana. This shall include26 accepting and approving the recommendations for licensing by the entities27 provided for in R.S. 40:1046.8.28 (2) Meet at least quarterly and may meet upon the call of the chairman29 SB NO. 541 SLS 14RS-578 ORIGINAL Page 7 of 19 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. or any three members. Meetings of the board shall be open to the public in1 accordance with law.2 (3) Review and establish standards, procedures, and protocols for3 determining the amounts of therapeutic marijuana that may be reasonably4 necessary to ensure uninterrupted availability for a period of one month for5 qualifying patients, including amounts for topical treatments.6 (4) Prepare and submit electronically an annual report to the legislature7 and the governor regarding the therapeutic use of marijuana in the state of8 Louisiana. The report shall include at a minimum:9 (a) Recommendations for all needed changes in the law regarding the10 therapeutic use of marijuana in Louisiana.11 (b) A complete report on the receipt and expenditure of all funds12 received.13 (c) Comprehensive data regarding the number of qualifying patients,14 therapeutic marijuana treatment centers, producers, production facilities,15 physicians, and dispensers, and the quantities of marijuana that have been16 prescribed for therapeutic use as provided for by this Part.17 (5) Perform other duties related to the therapeutic use of marijuana18 upon the request of the governor or legislature.19 (6) Establish and modify, as necessary, a plan of organization to20 administer the provisions of this Part efficiently and thoroughly.21 (7) Analyze and review investigative and audit reports and findings.22 (8) Issue a written response to any formal request from the governor23 and the legislature or any committee thereof.24 (9) Appear before any committee of the legislature upon request of the25 president of the Senate, the speaker of the House, or the chairman of any26 legislative standing committee.27 (10) Review and make recommendations for the approval of the medical28 conditions to be added to the list of qualifying medical conditions that qualify29 SB NO. 541 SLS 14RS-578 ORIGINAL Page 8 of 19 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. for the therapeutic use of marijuana.1 (11) Work in conjunction with the Louisiana State Police Crime2 Laboratory to develop procedures for testing therapeutic marijuana samples3 for levels of tetrahydrocannabinol (THC) or other testing parameters deemed4 appropriate by the board.5 (12) Maintain a list of all physicians, therapeutic marijuana treatment6 centers, therapeutic marijuana dispensers, therapeutic marijuana producers,7 and therapeutic marijuana production facilities licensed in Louisiana pursuant8 to the provisions of this Part.9 B. The board shall adopt rules pursuant to the Administrative10 Procedure Act. Rules of the board shall be subject to legislative oversight and11 review. The legislative review of the rules shall be conducted by the Senate12 Committee on Health and Welfare and the House Committee on Health and13 Welfare.14 C. The rules adopted pursuant to Subsection B of this Section shall15 include but shall not be limited to the following:16 (1) Standards, procedures, and protocols for the effective use of17 therapeutic marijuana as authorized by the provisions of this Part.18 (2) Standards, procedures, and protocols for the production,19 prescribing, and dispensing of therapeutic marijuana in Louisiana.20 (3) Procedures and protocols to provide that no therapeutic marijuana21 may be dispensed from, produced from, obtained from, sold to, or transferred22 to a location outside of this state.23 (4) A description of the areas in this state where therapeutic marijuana24 treatment centers shall not be located.25 (5) Health, safety, and security requirements for therapeutic marijuana26 treatment centers, and therapeutic marijuana production facilities which may27 include but are not limited to:28 (a) The ability to maintain adequate control against the diversion, theft,29 SB NO. 541 SLS 14RS-578 ORIGINAL Page 9 of 19 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. and loss of therapeutic marijuana acquired or possessed by the treatment center1 or production facility.2 (b) The ability to maintain the knowledge, understanding, judgment,3 procedures, security controls, and ethics to ensure optimal safety and accuracy4 in the production, dispensing, and use of therapeutic marijuana.5 (6) The establishment of standards and procedures for the revocation,6 suspension, and nonrenewal of licenses issued pursuant to this Part.7 (7) The establishment of standards and procedures for the denial of8 licenses authorized pursuant to this Part.9 (8) The establishment of other licensing, renewal and operational10 standards deemed necessary by the board.11 (9) The establishment of standards, procedures, and protocols for12 determining the amount of usable therapeutic marijuana that is necessary to13 constitute an adequate supply to ensure uninterrupted availability for a period14 of one month, including amounts for topical treatments.15 (10) The development of a distribution system for therapeutic marijuana16 use that provides for both of the following:17 (a) Therapeutic marijuana production facilities within this state that are18 housed on secured grounds and operated by licensed producers.19 (b) The distribution of marijuana for therapeutic use to qualifying20 patients by therapeutic marijuana treatment centers.21 (11) Procedures and protocols to provide that no producer may cultivate22 marijuana for therapeutic use outside of Louisiana and to designate permissible23 locations for licensed producers in Louisiana.24 (12) The establishment of financial requirements for applicants of25 therapeutic marijuana production facilities, producers, and treatment centers26 under which each applicant demonstrates the following:27 (a) The financial capacity to build and operate a therapeutic marijuana28 production facility or treatment center.29 SB NO. 541 SLS 14RS-578 ORIGINAL Page 10 of 19 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. (b) The ability to maintain an escrow account in a financial institution1 in Louisiana in an amount of two million dollars, if required by the board.2 (13) The establishment of health, safety, and security requirements for3 licensed producers, and production facilities which shall include but shall not4 be limited to a requirement that the applicant demonstrate all of the following:5 (a) The ability to maintain adequate control against the diversion, theft,6 and loss of therapeutic marijuana produced at that production facility.7 (b) The ability to cultivate pharmaceutical grade marijuana for8 therapeutic use in a secure indoor facility.9 (14) The establishment of standards, procedures, and protocols to10 ensure that all therapeutic marijuana produced and distributed at a therapeutic11 marijuana treatment center as authorized by the provisions of this Part is12 consistently pharmaceutical grade.13 (15) The establishment of standards and procedures for the revocation,14 suspension, and nonrenewal of licenses, provided the standards and procedures15 are consistent with the provisions this Part.16 (16) The establishment of other licensing, renewal, and operational17 standards which are deemed necessary by the board.18 (17) The establishment of standards, procedures, and protocols for the19 development of a Radio Frequency Identification (RFID) system, or Global20 Positioning System (GPS), or an equivalent inventory tracking program for the21 tracking of therapeutic marijuana.22 (18) The establishment of standards and procedures for testing23 therapeutic marijuana samples for levels of tetrahydrocannabinol (THC) or24 other testing parameters deemed appropriate by the board.25 §1046.7. Louisiana Therapeutic Use of Marijuana Fund26 A. The Louisiana Therapeutic Use of Marijuana Fund, hereinafter27 referred to as the "fund", is hereby created in the state treasury. Interest28 earned on the investment of monies in the fund shall be deposited in and29 SB NO. 541 SLS 14RS-578 ORIGINAL Page 11 of 19 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. credited to the fund. Unexpended and unencumbered monies in the fund at the1 close of each fiscal year shall remain in the fund. Monies in the fund shall be2 appropriated, administered, and used solely and exclusively for purposes of this3 Part.4 B. The fund shall be comprised of all fines, fees, and other monies5 appropriated, donated, or otherwise made available to provide funding for the6 provisions of the Louisiana Therapeutic Use of Marijuana Act. All of such7 monies required to be deposited in the state treasury in accordance with Article8 VII, Section 9(A) of the Constitution of Louisiana shall be deposited in the fund9 after first meeting the requirements of Article VII, Section 9(B) of the10 Constitution of Louisiana relative to the Bond Security and Redemption Fund.11 C. Monies in the fund shall be appropriated and used solely and12 exclusively to provide for the implementation of the provisions of this Part.13 D. The fund shall be administered by the board as authorized by the14 provisions of this Part. The board is hereby authorized to establish such15 accounts or sub-accounts within the fund as deemed necessary to comply with16 the provisions of the Louisiana Therapeutic Use of Marijuana Act. The board17 shall not comingle the monies in the fund established in this Section with any18 other monies or funds of the board for any reason.19 E. The Department of Agriculture and Forestry, the Louisiana Board20 of Medical Examiners, and the Louisiana Board of Pharmacy shall be21 reimbursed for any expenses those departments incur for the investigation and22 licensing functions they perform as provided for by this Part.23 §1046.8. Suitability for licensing; qualifications for licensing24 A. No person shall be eligible to obtain any license or obtain any other25 approval pursuant to the provisions of this Part unless the applicant has26 demonstrated by clear and convincing evidence that he is suitable as provided27 in this Section.28 B. To be suitable, an applicant shall be:29 SB NO. 541 SLS 14RS-578 ORIGINAL Page 12 of 19 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. (1) A resident of the state.1 (2) Twenty-one years of age or older.2 (3) A person of good character, honesty, and integrity.3 (4) A person whose prior activities, criminal record, if any, reputation,4 habits, and associations do not pose a threat to the public interest of this state5 or to the effective regulation and the use of therapeutic marijuana.6 (5) A person who is capable of and likely to conduct the activities for7 which the applicant is licensed. This shall include the financial capability to8 conduct the activities for which the applicant is licensed.9 (6) A person who does not owe the state or any local governing authority10 or any municipality any delinquent sales taxes, penalties, or interest, excluding11 items under formal appeal or protest as provided by law.12 (7) A person who agrees in writing to hold harmless and indemnify the13 licensing authority, the state, or the board for any and all liability arising out14 of the issuance of the license authorized pursuant to this Part.15 (8) A person who is not disqualified pursuant to the provisions of16 Subsection C of this Section.17 C. No licensing authority provided for by this Part shall issue a license18 to any person who is disqualified on the basis of the following criteria:19 (1) The conviction or a plea of guilty or nolo contendere by the applicant20 or any person required to be suitable under the provisions of this Part for any21 of the following:22 (a) Any offense punishable by imprisonment of more than one year.23 (b) Any offense involving a controlled dangerous substance.24 (c) A crime of violence as defined in R.S. 14:2(B) or a sex offense as25 defined in R.S. 15:141.26 (2) There is a current prosecution or pending charge against the person27 in any jurisdiction for any offense listed in Paragraph (1) of this Subsection.28 (3) The person is not current in filing all applicable tax returns and in29 SB NO. 541 SLS 14RS-578 ORIGINAL Page 13 of 19 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. the payment of all taxes, penalties, and interest owed to the state of Louisiana1 or any political subdivision of Louisiana, excluding items under formal appeal.2 (4) The failure to provide information and documentation to reveal any3 fact material to a suitability determination, or the supplying of information4 which is untrue or misleading as to a material fact pertaining to the suitability5 criteria.6 §1046.9. License applications; licensing authority7 A. An application for any license as authorized by the provisions of this8 Part shall be made to the respective licensing authorities on forms furnished by9 those authorities.10 B. The licenses provided for by this Part shall be issued for a term of two11 years by the following licensing authorities:12 (1) A therapeutic marijuana treatment center license shall be issued by13 the Louisiana Board of Pharmacy.14 (2) A therapeutic marijuana dispensing agent license shall be issued by15 the Louisiana Board of Pharmacy.16 (3) A license to prescribe therapeutic marijuana shall be issued by the17 Louisiana Board of Medical Examiners.18 (4) A therapeutic marijuana production facility license shall be issued19 by the commissioner of the Department of Agriculture and Forestry.20 (5) A therapeutic marijuana producer license shall be issued by the21 commissioner of the Department of Agriculture and Forestry.22 §1046.10. Qualifications for physician licensing to prescribe therapeutic23 marijuana24 The Louisiana Board of Medical Examiners shall issue a license to25 prescribe therapeutic marijuana to a qualified physician upon satisfaction of all26 of the following criteria:27 (1) The physician has been certified as a neurologist, oncologist, or28 ophthalmologist.29 SB NO. 541 SLS 14RS-578 ORIGINAL Page 14 of 19 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. (2) The physician meets the suitability requirements as provided for in1 R.S. 40:1046.7.2 (3) The physician holds a current and unrestricted license in good3 standing to practice medicine issued by the Louisiana State Board of Medical4 Examiners.5 (4) The physician holds a controlled dangerous substance permit issued6 by the Louisiana Board of Pharmacy.7 (5) The physician holds a controlled dangerous substance permit and8 registration issued by the state and the United States Drug Enforcement9 Agency.10 (6) The physician is in compliance with any criteria established by rules11 adopted by the Therapeutic Marijuana Utilization Review Board.12 §1046.11. Qualifications for licensing of therapeutic marijuana dispensing13 agent14 The Louisiana Board of Pharmacy shall issue a license to dispense15 therapeutic marijuana to a qualified pharmacist upon satisfaction of all of the16 following criteria:17 (1) The pharmacist meets the suitability requirements as provided for18 in R.S. 40:1046.7.19 (2) The pharmacist is a resident of this state for not less than six months.20 (3) The pharmacist is currently licensed to engage in the practice of21 pharmacy in this state.22 (4) The pharmacist is actively engaged in the practice of pharmacy in23 this state and is employed by, or is the owner of, a therapeutic marijuana24 treatment center.25 (5) The pharmacist has at least five years of experience in the practice26 of pharmacy in this state.27 (6) The pharmacist is in compliance with any criteria established by28 rules adopted by the Therapeutic Marijuana Utilization Review Board.29 SB NO. 541 SLS 14RS-578 ORIGINAL Page 15 of 19 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. §1046.12. Therapeutic marijuana treatment facility; number of facilities;1 permit requirements2 A. The Louisiana Board of Pharmacy shall issue a license to an3 applicant to operate a therapeutic marijuana treatment facility upon4 satisfaction of all of the following criteria:5 (1) The owner of the facility meets the suitability requirements as6 provided for in R.S. 40:1046.7.7 (2) The facility employs a therapeutic marijuana dispensing agent who8 is a pharmacist licensed by the Louisiana Board of Pharmacy and also has been9 issued a current and valid license to dispense therapeutic marijuana pursuant10 to the 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 the15 holder of a valid and current controlled dangerous substances permit issued by16 the 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 B. There shall be a maximum of ten therapeutic marijuana treatment20 facilities in the state of Louisiana. One facility shall be located in each human21 services district as provided for in R.S. 28:912(B).22 §1046.13. Therapeutic marijuana production facilities; number of facilities23 A. The commissioner of the Department of Agriculture and Forestry24 shall issue a license to an applicant to operate a therapeutic marijuana25 production facility upon satisfaction of all of the following criteria:26 (1) The owner of the facility meets the suitability requirements as27 provided for in R.S. 40:1046.7.28 (2) The owner of the facility demonstrates the financial capacity to build29 SB NO. 541 SLS 14RS-578 ORIGINAL Page 16 of 19 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. and operate a therapeutic marijuana production facility.1 (3) The owner of the facility demonstrates the ability to maintain an2 escrow account in a financial institution in Louisiana in an amount of two3 million dollars if required by the board.4 (4) The owner of the facility demonstrates all of the following:5 (a) The ability to maintain adequate control against the diversion, theft,6 and loss of therapeutic marijuana produced at that production facility.7 (b) The ability to cultivate pharmaceutical grade marijuana for8 therapeutic use in a secure indoor facility.9 (c) The ability to produce and cultivate therapeutic marijuana with a10 guaranteed tetrahydrocannabinol (THC) percentage level as established by the11 board.12 (d) The ability to provide for secured inventory and computer inventory13 tracking of all therapeutic marijuana produced at that facility.14 (5) The owner of the facility establishes standards and protocols to15 ensure that all therapeutic marijuana produced and distributed at a therapeutic16 marijuana treatment center as authorized by the provisions of this Part is17 consistently pharmaceutical grade.18 B. There shall be a maximum of six marijuana production facilities in19 the state, one for each congressional district.20 §1046.14. Exemption from criminal prosecution21 A. No patient who has a prescription for therapeutic marijuana shall be22 arrested or prosecuted for possession of marijuana in violation of R.S. 40:966(E)23 if the patient is in possession of the marijuana pursuant to the provisions of this24 Part.25 B. No therapeutic marijuana dispenser, therapeutic marijuana26 producer, or any employee of a therapeutic marijuana treatment facility or27 therapeutic marijuana production facility shall be prosecuted for the28 production, manufacturing, dispensing or distributing marijuana or possession29 SB NO. 541 SLS 14RS-578 ORIGINAL Page 17 of 19 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. with intent to produce, manufacture, dispense or distribute marijuana in1 violation of R.S. 40:966(A) if the dispensing agent or the employee is in the2 course and scope of his employment and in compliance with the provisions of3 this Part.4 C. The provisions of this Section shall not be construed to exempt a5 therapeutic marijuana dispenser, producer, or employee of a therapeutic6 marijuana treatment facility or production facility from any criminal provisions7 provided for in the Uniform Controlled Dangerous Substances Act or in any8 other provision of law if the dispenser, producer, or their employees are not in9 compliance with the provisions of this Part and the activity is directly related10 to the course and scope of their duties as provided by this Part.11 §1046.15. Therapeutic marijuana not covered by health insurance12 The provisions of this Part shall not be construed to require any13 insurance company, health maintenance organization, or any other health14 insurance issuer to cover, reimburse, or provide for any costs associated with15 the expenses of obtaining therapeutic marijuana or any items, services, supplies,16 or paraphernalia related to the use of therapeutic marijuana as authorized by17 the provisions of this Part.18 Section 2. No license shall be issued as authorized by the provisions of this Part until19 the Louisiana Therapeutic Utilization Review Board has adopted all rules required to20 implement the provisions of this Part. 21 Section 3. The provisions of this Act shall be effective on January 1, 2015.22 The original instrument and the following digest, which constitutes no part of the legislative instrument, were prepared by Christopher D. Adams. DIGEST Mills (SB 541) Present law authorizes the prescribing of therapeutic marijuana for certain medical conditions. Proposed law deletes present law. Proposed law provides that a physician as defined may prescribe therapeutic marijuana, tetrahydrocannabinols, or a chemical derivative of tetrahydrocannabinols for therapeutic use SB NO. 541 SLS 14RS-578 ORIGINAL Page 18 of 19 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. if all of the following occur: (1)The physician is a certified neurologist, oncologist, or ophthalmologist 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 ophthalmologists 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 places the Therapeutic Marijuana Utilization Review Board within the Department of Health and Hospitals. 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. SB NO. 541 SLS 14RS-578 ORIGINAL Page 19 of 19 Coding: Words which are struck through are deletions from existing law; words in boldface type and 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 of 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 supplying 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. 40:1046.1-1046.15; adds R.S. 36:259(OO))