HLS 16RS-1747 ORIGINAL 2016 Regular Session HOUSE BILL NO. 1112 BY REPRESENTATIVE JAMES DRUGS/CONTROLLED: Establishes the Louisiana Therapeutic Use of Cannabis Act 1 AN ACT 2To amend and reenact Part X-E of Chapter 4 of Title 40 of the Louisiana Revised Statutes 3 of 1950, to be comprised of R.S. 40:1045.1 through R.S. 40:1045.141, and R.S. 4 44:4.1(B)(26) and to repeal R.S. 40:1046, relative to marijuana for therapeutic use; 5 to provide for legislative findings; to define relevant terms; to authorize the 6 therapeutic use of cannabis; to provide for qualifying medical conditions; to provide 7 for qualifying patients and designated caregivers; to provide for registry 8 identification cards and the verification of such cards; to provide for registration of 9 therapeutic cannabis manufacturers, dispensaries, and testing facilities; to authorize 10 local regulatory ordinances; to provide regulatory and rulemaking authority; to 11 establish penalties for violations; to provide for confidentiality and an exemption to 12 the Public Records Law; to establish an advisory committee; to require an annual 13 report to the legislature; to provide for choice of law; to provide for an effective date; 14 and to provide for related matters. 15Be it enacted by the Legislature of Louisiana: Page 1 of 38 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 16RS-1747 ORIGINAL HB NO. 1112 1 Section 1. Part X-E of Chapter 4 of Title 40 of the Louisiana Revised Statutes of 21950, comprised of R.S. 40:1045.1 through R.S. 40:1045.141, is hereby amended and 3reenacted to read as follows: 4 PART X-E. THERAPEUTIC USE OF MARIJUANA CANNABIS 5 SUBPART A. GENERAL PROVISIONS 6 §1045.1. Short title 7 This Part shall be known and may be cited as the "Louisiana Therapeutic Use 8 of Cannabis Act". 9 §1045.2. Legislative findings 10 The Legislature of Louisiana hereby finds and declares all of the following: 11 (1) Cannabis's recorded use as a medicine goes back nearly five thousand 12 years. Modern medical research has confirmed the beneficial uses of cannabis, 13 which is also called marijuana, in treating or alleviating the pain, nausea, and other 14 symptoms associated with a variety of debilitating medical conditions, including 15 cancer, multiple sclerosis, and HIV/AIDS, as found by the National Academy of 16 Sciences' Institute of Medicine in March 1999. 17 (2) Studies published since the 1999 Institute of Medicine report continue 18 to show the therapeutic value of cannabis in treating a wide array of debilitating 19 medical conditions. These include relief of the neuropathic pain that often fails to 20 respond to conventional treatments and reduced symptoms and even complete 21 remission from Crohn's disease. 22 (3) Cannabis has many accepted therapeutic uses in the United States, having 23 been recommended by thousands of licensed physicians to more than one million 24 patients in states with medical cannabis laws. A wide range of medical and public 25 health organizations including the American Academy of HIV Medicine, the 26 American College of Physicians, the American Nurses Association, the American 27 Public Health Association, the Leukemia & Lymphoma Society, the Epilepsy 28 Foundation, and many others have recognized the therapeutic utility of cannabis. Page 2 of 38 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 16RS-1747 ORIGINAL HB NO. 1112 1 (4) Although Louisiana adopted legislation to allow the therapeutic use of 2 cannabis in 1978, its therapeutic use laws have not provided patients with legal 3 protections or safe access to cannabis because they relied on physicians prescribing 4 cannabis, pharmacies distributing cannabis, agencies to promulgate rules that were 5 never drafted, or the federal government granting permission to a program. 6 Meanwhile, twenty-three other states and the District of Columbia have enacted laws 7 to successfully removed state-level criminal penalties from the medical use of 8 cannabis, and to provide access to medical cannabis. 9 (5) States are not required to enforce federal law or prosecute people for 10 engaging in activities prohibited by federal law. Therefore, compliance with this Part 11 does not put the state of Louisiana in violation of federal law. 12 §1045.3. Definitions 13 For purposes of this Part the following definitions apply unless the context 14 clearly indicates otherwise: 15 (1) "Allowable amount of cannabis" means two and one-half ounces of 16 cannabis, none of which may be growing, and the quantity of cannabis products as 17 established by department regulation. 18 (2) "Bona fide physician-patient relationship" means a physician-patient 19 relationship which meets all of the following criteria: 20 (a) The physician and patient have a treatment or consulting relationship, 21 during the course of which the physician has completed an assessment of the 22 patient's medical history and current medical condition, including an appropriate 23 examination. 24 (b) The physician has consulted with the patient with respect to the patient's 25 debilitating medical condition. 26 (c) The physician is available to or offers to provide follow-up care and 27 treatment to the patient. 28 (3) "Cannabis products" means concentrated cannabis, cannabis extracts, and 29 products that are infused with cannabis or an extract thereof and are intended for use Page 3 of 38 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 16RS-1747 ORIGINAL HB NO. 1112 1 or consumption by humans. The term includes, without limitation, edible cannabis 2 products, beverages, topical products, ointments, oils, and tinctures. 3 (4) "Cannabis testing facility" or "testing facility" means an independent 4 entity registered by the Department of Health and Hospitals pursuant to this Part to 5 analyze the safety and potency of cannabis. 6 (5) "Cardholder" means a qualifying patient or a designated caregiver who 7 has been issued and possesses a valid registry identification card. 8 (6) "Debilitating medical condition" means any of the following conditions: 9 (a) Cancer. 10 (b) Glaucoma. 11 (c) Spasticity. 12 (d) Quadriplegia. 13 (e) Positive status for human immunodeficiency virus. 14 (f) Acquired immune deficiency syndrome. 15 (g) A need to promote weight gain in HIV/AIDS wasting syndromes. 16 (h) Seizures. 17 (i) Amyotrophic lateral sclerosis. 18 (j) Crohn's disease. 19 (k) Multiple sclerosis. 20 (l) Ulcerative colitis. 21 (m) Intractable pain. 22 (n) Any other serious medical condition added by the department pursuant 23 to R.S. 40:1046.6. 24 (7) "Department" means the Department of Health and Hospitals or its 25 successor agency. 26 (8) "Designated caregiver" means a person who meets all of the following 27 criteria: 28 (a) Is at least twenty-one years of age. 29 (b) Has significant responsibility for managing the well-being of a patient. Page 4 of 38 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 16RS-1747 ORIGINAL HB NO. 1112 1 (c) Has not been convicted of a disqualifying felony offense. 2 (d) Assists no more than five qualifying patients with their therapeutic use 3 of cannabis, unless the designated caregiver's qualifying patients each reside in or are 4 admitted to a healthcare facility or residential care facility where the designated 5 caregiver is employed. 6 (9) "Disqualifying felony offense" means either of the following: 7 (a) A crime of violence as defined in R.S. 14:2 that was classified as a felony 8 in the jurisdiction where the person was convicted. 9 (b) A violation of a state or federal controlled substances law that was 10 classified as a felony in the jurisdiction where the person was convicted unless the 11 violation is one of the following: 12 (i) An offense for which the sentence, including any term of probation, 13 incarceration, or supervised release, was completed ten or more years earlier. 14 (ii) An offense that consisted of conduct for which this Part would likely 15 have prevented a conviction, but the conduct either occurred prior to the enactment 16 of this Part or was prosecuted by an authority other than the state of Louisiana. 17 (10) "Edible cannabis products" means products that contain or are infused 18 with cannabis or an extract thereof, are intended for human consumption by oral 19 ingestion, and are presented in the form of foodstuffs, beverages, extracts, oils, 20 tinctures, and other similar products. 21 (11) "Physician" means a physician who is licensed to practice medicine in 22 this state. 23 (12) "Qualifying patient" means a Louisiana resident who has been 24 diagnosed by a physician as having a debilitating medical condition and who has 25 otherwise met the requirements to qualify for a registry identification card. 26 (13) "Registry identification card" means a document issued by the 27 department that identifies a person as a registered qualifying patient or registered 28 designated caregiver or documentation that is deemed a registry identification card 29 pursuant to this Part. Page 5 of 38 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 16RS-1747 ORIGINAL HB NO. 1112 1 (14) "Smoked cannabis" or "smoking" means cannabis that is heated to at 2 least the point of combustion causing plant material to burn. 3 (15) "Therapeutic cannabis" or "cannabis" means any species of the genus 4 Cannabis plant, or any mixture or preparation of them including whole plant extracts 5 and resins. The term does not include smoked cannabis. 6 (16) "Therapeutic cannabis dispensary" or "dispensary" means an entity 7 registered by the Louisiana Board of Pharmacy pursuant to this Part that acquires, 8 possesses, stores, delivers, transfers, transports, sells, supplies, or dispenses cannabis, 9 cannabis products, paraphernalia, or related supplies and educational materials to 10 cardholders. 11 (17) "Therapeutic cannabis establishment" means a cannabis manufacturer, 12 dispensary, or a testing facility registered with the department. 13 (18) "Therapeutic cannabis establishment agent" means an owner, officer, 14 board member, employee, volunteer, or agent of a therapeutic cannabis 15 establishment. 16 (19) "Therapeutic cannabis manufacturer" or "cannabis manufacturer" means 17 an entity registered by the Department of Agriculture and Forestry to cultivate, 18 acquire, manufacture, possess, prepare, transfer, transport, supply, or dispense 19 therapeutic cannabis, delivery devices, or related supplies and educational materials. 20 (20) "Written certification" means a document dated and signed by a 21 physician containing all of the following: 22 (a) A statement that in the physician's professional opinion the patient is 23 likely to receive therapeutic or palliative benefit from the therapeutic use of cannabis 24 to treat or alleviate the patient's debilitating medical condition or symptoms 25 associated with the debilitating medical condition. 26 (b) A statement affirming that the written certification is made in the course 27 of a bona fide physician-patient relationship. 28 (c) A statement specifying the qualifying patient's debilitating medical 29 condition. Page 6 of 38 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 16RS-1747 ORIGINAL HB NO. 1112 1 SUBPART B. THERAPEUTIC USE OF CANNABIS 2 §1045.11. Therapeutic use of cannabis; lawful activities 3 For the purposes of Louisiana law, activities related to therapeutic cannabis 4 shall be considered lawful if they are performed in accordance with this Part. 5 §1045.12. Therapeutic use of cannabis; immunities; presumption 6 A. Notwithstanding any other provision of law including but not limited to 7 R.S. 40:966, a qualifying patient who possesses a valid registry identification card 8 shall not be subject to arrest, prosecution, or penalty in any manner or denial of any 9 right or privilege including any civil penalty or disciplinary action by a court or 10 occupational or professional licensing board or other entity for any of the following 11 actions: 12 (1) Possessing, transporting, or using cannabis pursuant to this Part if the 13 cardholder does not possess more than the allowable amount of cannabis. 14 (2) Transferring cannabis to a testing facility for testing. 15 (3) Compensating a dispensary for goods or services provided. 16 B. Notwithstanding any other provision of law including but not limited to 17 R.S. 40:966, a caregiver who possesses a valid registry identification card shall not 18 be subject to arrest, prosecution, or penalty in any manner or denial of any right or 19 privilege including any civil penalty or disciplinary action by a court or occupational 20 or professional licensing board or other entity for any of the following actions: 21 (1) Possessing, transporting, or delivering to the caregiver's qualifying 22 patient of cannabis pursuant to this Part if the cardholder does not possess more than 23 the allowable amount of cannabis. 24 (2) Transferring cannabis to a testing facility for testing. 25 (3) Compensating a dispensary for goods or services provided. 26 C. There is a presumption that a qualifying patient or designated caregiver 27 is engaged in the therapeutic use of cannabis pursuant to this Part if the person is in 28 possession of a registry identification card and an amount of cannabis that does not 29 exceed the allowable amount. The presumption may be rebutted by evidence that Page 7 of 38 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 16RS-1747 ORIGINAL HB NO. 1112 1 conduct related to cannabis was not for the purpose of treating or alleviating a 2 qualifying patient's debilitating medical condition or symptoms associated with the 3 qualifying patient's debilitating medical condition pursuant to this Part. 4 D.(1) A physician shall not be subject to arrest, prosecution, or penalty in 5 any manner or denied any right or privilege including but not limited to civil penalty 6 or disciplinary action by the Louisiana State Board of Medical Examiners or by any 7 other occupational or professional licensing board or other entity solely for providing 8 written certifications or for otherwise stating that, in the physician's professional 9 opinion, a patient is likely to receive therapeutic or palliative benefit from the 10 therapeutic use of cannabis to treat or alleviate the patient's serious or debilitating 11 medical condition or symptoms associated with the serious or debilitating medical 12 condition. 13 (2) Nothing in this Part shall be construed to prohibit a physician from being 14 sanctioned for either of the following: 15 (a) Issuing a written certification to a patient with whom the physician does 16 not have a bona fide physician-patient relationship. 17 (b) Failing to properly evaluate a patient's medical condition. 18 E. An attorney shall not be subject to disciplinary action by the Louisiana 19 State Bar Association or other professional licensing association for providing legal 20 assistance to prospective or registered therapeutic cannabis establishments or others 21 related to activity that is no longer subject to criminal penalties under state law 22 pursuant to this Part. 23 F. No person shall be subject to arrest, prosecution, or penalty in any manner 24 or denied any right or privilege including any civil penalty or disciplinary action by 25 a court or occupational or professional licensing board or other entity for any of the 26 following actions: 27 (1) Providing or selling cannabis paraphernalia to a cardholder or to a 28 therapeutic cannabis establishment. Page 8 of 38 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 16RS-1747 ORIGINAL HB NO. 1112 1 (2) Being in the presence or vicinity of the therapeutic use of cannabis that 2 is exempt from criminal penalties by this Part. 3 (3) Allowing the person's property to be used for activities that are exempt 4 from criminal penalties by this Part. 5 (4) Assisting a registered qualifying patient with the act of using or 6 administering cannabis consumed pursuant to this Part. 7 G. A therapeutic cannabis establishment or a therapeutic cannabis 8 establishment agent shall not be subject to prosecution, search or inspection except 9 as authorized by this Part, seizure, or penalty in any manner, and shall not be denied 10 any right or privilege including civil penalty or disciplinary action by a court or 11 business licensing board or other entity for engaging in activities related to 12 therapeutic cannabis that are allowed by its registration pursuant to this Part. 13 H. A dispensary or a dispensary agent shall not be subject to prosecution, 14 search or inspection except as authorized by this Part, seizure, or penalty in any 15 manner and shall not be denied any right or privilege including civil penalty or 16 disciplinary action by a court or business licensing board or other entity for acting 17 pursuant to this Part and rules authorized by this Part to do any of the following: 18 (1) Possess, transport, and store cannabis and cannabis products. 19 (2) Deliver, transfer, and transport cannabis to testing facilities and 20 compensate testing facilities for services provided. 21 (3) Purchase or otherwise acquire cannabis or cannabis products from 22 cannabis product production facilities or dispensaries. 23 (4) Deliver, sell, supply, transfer, or transport cannabis, cannabis products, 24 and cannabis paraphernalia and related supplies and educational materials to 25 cardholders. 26 I. A cannabis manufacturer agent shall not be subject to prosecution, search 27 or inspection except as authorized by this Part, seizure, or penalty in any manner and 28 shall not be denied any right or privilege including civil penalty or disciplinary Page 9 of 38 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 16RS-1747 ORIGINAL HB NO. 1112 1 action by a court or business licensing board or other entity for acting pursuant to 2 this Part and rules authorized by this Part to do any of the following: 3 (1) Possess, plant, propagate, cultivate, grow, harvest, produce, process, 4 manufacture, compound, convert, prepare, pack, repack, or store cannabis or 5 cannabis products. 6 (2) Deliver, transfer, or transport cannabis or cannabis products to testing 7 facilities and compensate testing facilities for services provided. 8 (3) Obtain cannabis seeds or clones from qualifying patients from other 9 states or from cannabis businesses that are registered in another jurisdiction. 10 (4) Deliver, sell, supply, transfer, or transport cannabis, cannabis 11 paraphernalia, and related supplies and educational materials to dispensaries. 12 J. A testing facility or testing facility agent shall not be subject to 13 prosecution, search or inspection except as authorized by this Part, seizure, or 14 penalty in any manner and shall not be denied any right or privilege including civil 15 penalty or disciplinary action by a court or business licensing board or other entity 16 for acting pursuant to this Part and rules authorized by this Part to do any of the 17 following: 18 (1) Acquire, possess, transport, and store cannabis and cannabis products 19 obtained from cardholders and therapeutic cannabis establishments. 20 (2) Return the cannabis and cannabis products to the cardholders and 21 therapeutic cannabis establishments from whom it was obtained. 22 (3) Test cannabis, including for potency, pesticides, mold, or contaminants. 23 (4) Receive compensation for those services listed in Paragraphs (1) through 24 (3) of this Subsection. 25 K. The staffer of a therapeutic cannabis establishment that is registered in 26 another jurisdiction may sell or donate cannabis seeds or clones to cultivation 27 facilities. A patient who is registered in another state may donate cannabis seeds or 28 clones to cultivation facilities. Page 10 of 38 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 16RS-1747 ORIGINAL HB NO. 1112 1 L. Any cannabis, cannabis product, cannabis paraphernalia, or other interest 2 in or right to property that is possessed, owned, or used in connection with the 3 therapeutic use of cannabis pursuant to this Part, or acts incidental to such use, shall 4 not be seized or forfeited. Nothing in this Part shall be construed to prohibit the 5 seizure or forfeiture of cannabis exceeding the amounts authorized by this Part or to 6 prevent seizure or forfeiture if the basis for the action is unrelated to the mere 7 possession of the therapeutic cannabis that is possessed, manufactured, transferred, 8 or used pursuant to this Part. 9 M. Possession of, or application for, a registry identification card shall not 10 constitute probable cause or reasonable suspicion nor shall it be used alone to 11 support a search of the person or property of the person possessing or applying for 12 the registry identification card or otherwise subject the person or property of the 13 person to inspection by any governmental agency. 14 §1045.13. Therapeutic use of cannabis; validity of contracts 15 A. It is the public policy of the state of Louisiana that contracts related to 16 therapeutic cannabis that are entered into by cardholders, therapeutic cannabis 17 establishments, or therapeutic cannabis establishment agents, and those who allow 18 property to be used by those persons, shall be enforceable. 19 B. It is the public policy of the state of Louisiana that no contract entered 20 into by a cardholder, a therapeutic cannabis establishment, or a therapeutic cannabis 21 establishment agent or by a person who allows property to be used for activities that 22 are exempt from state criminal penalties pursuant to this Part shall be unenforceable 23 on the basis that activities related to cannabis are prohibited by federal law. 24 §1045.14. Limitations; scope of applicability 25 A. Nothing in this Part shall be construed to authorize any person to engage 26 in, or to prevent the imposition of any civil, criminal, or other penalties for engaging 27 in, any of the following conduct: 28 (1) Undertaking any task under the influence of cannabis when doing so 29 would constitute negligence or professional malpractice. Page 11 of 38 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 16RS-1747 ORIGINAL HB NO. 1112 1 (2) Possessing cannabis or otherwise engaging in the therapeutic use of 2 cannabis in any correctional facility unless the correctional facility has elected to 3 allow the cardholder to engage in the therapeutic use of cannabis. 4 (3) Smoking cannabis. 5 (4) Operating, navigating, or being in actual physical control of any motor 6 vehicle, aircraft, train, or motorboat while under the influence of cannabis. 7 B. Nothing in this Part shall be construed to require a government medical 8 assistance program or private insurer to reimburse a person for costs associated with 9 the therapeutic use of cannabis. 10 C. Nothing in this Part shall be construed to prohibit an employer from 11 disciplining an employee for ingesting cannabis in the workplace or for working 12 while under the influence of cannabis. 13 SUBPART C. QUALIFYING MEDICAL CONDITIONS 14 §1045.21. Addition of debilitating medical conditions 15 A. Any resident of Louisiana may petition the department to add a serious 16 medical condition or its treatment to the list of debilitating medical conditions as 17 defined in R.S. 40:1045.3. 18 B. The department shall promulgate rules of procedure for the consideration 19 of petitions which shall include a public notice and hearing. 20 C. The department shall approve or deny a petition within one hundred 21 eighty days of its submission. 22 D. The approval or denial of any petition shall be considered a final decision 23 of the department and shall be subject to judicial review. Jurisdiction and venue are 24 vested in the First Circuit Court of Appeal. 25 SUBPART D. QUALIFYING PATIENTS AND DESIGNATED CAREGIVERS 26 §1045.31. Registry identification cards; issuance; 27 A. No later than October 1, 2016, the department shall begin issuing registry 28 identification cards to qualifying patients who submit all of the following in 29 accordance with the department's rules and regulations: Page 12 of 38 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 16RS-1747 ORIGINAL HB NO. 1112 1 (1) A written certification issued by a physician within ninety days 2 immediately preceding the date of the application. 3 (2) The application or renewal fee. 4 (3) The name, address unless the applicant is homeless, and date of birth of 5 the qualifying patient. 6 (4) The name, address, and telephone number of the qualifying patient's 7 physician. 8 (5) The name, address, and date of birth of the designated caregiver, or 9 designated caregivers, chosen by the qualifying patient. 10 (6) If more than one designated caregiver is designated at any given time, 11 documentation demonstrating that a greater number of designated caregivers is 12 needed due to the patient's age or medical condition. 13 (7) The name of the dispensaries that the qualifying patient designates, if 14 any. 15 B. If the qualifying patient is unable to submit the information required by 16 Subsection A of this Section due to the patient's age or medical condition, the person 17 responsible for making medical decisions for the qualifying patient may do so on 18 behalf of the qualifying patient. 19 C. Except as provided in Subsection E of this Section, the department shall 20 do all of the following: 21 (1) Verify the information contained in an application or renewal submitted 22 pursuant to this Part and approve or deny an application or renewal within fifteen 23 days of receiving a completed application or renewal application. 24 (2) Issue registry identification cards to a qualifying patient and any 25 designated caregiver within five days of approving the application or renewal. 26 (3) Enter the registry identification number of the dispensary or dispensaries 27 the patient designates into the verification system. 28 D.(1) The department shall issue a registry identification card to a designated 29 caregiver for each qualifying patient. Page 13 of 38 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 16RS-1747 ORIGINAL HB NO. 1112 1 (2) The department may conduct a background check of the prospective 2 designated caregiver in order to carry out this Section. 3 E. The department shall not issue a registry identification card to a qualifying 4 patient who is younger than eighteen years of age unless both of the following 5 conditions are satisfied: 6 (1) The qualifying patient's physician has explained the potential risks and 7 benefits of the therapeutic use of cannabis to the custodial parent or legal guardian 8 with responsibility for healthcare decisions for the qualifying patient. 9 (2) The custodial parent or legal guardian with responsibility for healthcare 10 decisions for the qualifying patient consents in writing to do all of the following: 11 (a) Allow the qualifying patient's therapeutic use of cannabis. 12 (b) Serve as the qualifying patient's designated caregiver. 13 (c) Control the acquisition of the cannabis, the dosage, and the frequency of 14 the therapeutic use of cannabis by the qualifying patient. 15 F. Until a qualifying patient who has submitted an application and the 16 required fee to the department receives a registry identification card or a written 17 notice of denial, a copy of the individual's application, written certification, and 18 proof that the application was submitted to the department shall be deemed a registry 19 identification card for the purposes of this Part. 20 G. Until a designated caregiver whose qualifying patient has submitted an 21 application and the required fee receives a registry identification card or a written 22 notice of denial, a copy of the qualifying patient's application, written certification, 23 and proof that the application was submitted to the department shall be deemed a 24 registry identification card for purposes of this Part. 25 §1045.32. Registry identification cards; denial 26 A. The department shall only deny an application or renewal of a qualifying 27 patient's registry identification card for one or more of the following reasons: 28 (1) The applicant did not provide the required information, fee, or materials. 29 (2) The applicant previously had a registry identification card revoked. Page 14 of 38 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 16RS-1747 ORIGINAL HB NO. 1112 1 (3) The applicant provided false information. 2 B. The department shall only deny an application or renewal for a designated 3 caregiver chosen by a qualifying patient whose registry identification card was 4 granted for one or more of the following reasons: 5 (1) The choice does not meet the qualifications of a designated caregiver as 6 defined in R.S. 40:1045.3. 7 (2) The applicant did not provide the information required. 8 (3) The designated caregiver previously had a registry identification card 9 revoked. 10 (4) The applicant or the designated caregiver provided false information. 11 C. The department shall provide written notice to the qualifying patient of 12 the reason for denying a registry identification card to the qualifying patient or to the 13 qualifying patient's designated caregiver. 14 D. Denial of an application or renewal shall be considered a final department 15 action subject to judicial review. Jurisdiction and venue for judicial review are vested 16 in the First Circuit Court of Appeal. 17 §1045.33. Registry identification cards; contents 18 Registry identification cards shall contain all of the following information: 19 (1) The name of the cardholder. 20 (2) A designation of whether the cardholder is a qualifying patient or a 21 designated caregiver. 22 (3) The date of issuance and expiration date of the registry identification 23 card. 24 (4) A random ten-digit alphanumeric identification number, containing at 25 least four numbers and at least four letters, that is unique to the cardholder. 26 (5) If the cardholder is a designated caregiver, the random identification 27 number of any qualifying patients the designated caregiver will assist. 28 (6) A photograph of the cardholder if required by the department. Page 15 of 38 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 16RS-1747 ORIGINAL HB NO. 1112 1 (7) The phone number or web address through which the card can be 2 verified. 3 §1045.34. Registry identification cards; expiration 4 A. Except as provided in Subsection B of this Section, the expiration date of 5 a registry identification card issued pursuant to this Part shall be one year after the 6 date of issuance. 7 B. If the physician stated in the written certification that the qualifying 8 patient would benefit from cannabis until a specified earlier date, then the registry 9 identification card shall expire on that specified date. 10 §1045.35. Registry identification card; confidentiality; verification system 11 A. The department shall maintain a confidential list of the persons to whom 12 the department has issued registry identification cards and their addresses, phone 13 numbers, and registry identification numbers. This confidential list shall not be 14 combined or linked in any manner with any other list or database, nor shall it be 15 shared or used for any other purpose not authorized by this Part. 16 B. Within one hundred twenty days of the effective date of this Part, the 17 department shall establish a secure phone or web-based verification system. The 18 verification system shall allow law enforcement personnel and therapeutic cannabis 19 establishments to enter a registry identification number to determine whether the 20 number corresponds with a current, valid registry identification card. The system 21 shall disclose only the following information: 22 (1) Whether the identification card is valid and current. 23 (2) The name of the cardholder. 24 (3) Whether the cardholder is a qualifying patient or a designated caregiver. 25 (4) The registry identification number of any affiliated registered qualifying 26 patient. 27 (5) The registry identification of the qualifying patient's dispensary, if any. Page 16 of 38 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 16RS-1747 ORIGINAL HB NO. 1112 1 §1045.36. Registry identification card; notification of change of information; lost 2 cards 3 A. A registered qualifying patient shall notify the department of any change 4 in name or address or if the registered qualifying patient ceases to have a debilitating 5 medical condition no later than twenty days after the change in status. 6 B. A registered designated caregiver shall notify the department of any 7 change in name or address or if the designated caregiver becomes aware that the 8 qualifying patient is deceased no later than twenty days of the change in status. 9 C. A registered qualifying patient shall notify the department before 10 changing a designated caregiver or a designated dispensary. 11 D. If a cardholder loses the registry identification card, he shall notify the 12 department within ten days of becoming aware the card has been lost. 13 E. If the qualifying patient is unable to make a required notification due to 14 age or medical condition, the notification shall be made by the patient's designated 15 caregiver. 16 §1045.37. Registry identification card; reissuance 17 A. When a cardholder provides the department with any of the notifications 18 required pursuant to R.S. 40:1047.36 but remains eligible for registration pursuant 19 to this Part, the department shall issue the cardholder a new registry identification 20 card with a new random ten-digit alphanumeric identification number within ten 21 days of receiving the updated information and a twenty dollar fee. 22 B. If the person notifying the department is a registered qualifying patient, 23 the department shall also issue the patient's registered designated caregiver a new 24 registry identification card within ten days of receiving the updated information. 25 §1045.38. Registry identification card; revocation 26 A. The department shall immediately revoke the registry identification card 27 of any cardholder who sells cannabis to a person who is not authorized to possess 28 cannabis for therapeutic purposes pursuant to this Part, and the cardholder is 29 disqualified from further participation as provided in this Part. Page 17 of 38 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 16RS-1747 ORIGINAL HB NO. 1112 1 B. The department may revoke the registry identification card of any 2 cardholder who knowingly commits multiple unintentional violations or a serious 3 knowing violation of this Part. 4 C. Revocation shall be considered a final department action subject to 5 judicial review. Jurisdiction and venue for judicial review are vested in the First 6 Circuit Court of Appeal. 7 §1045.39. Registry identification card; loss of eligibility; disposition of cannabis 8 A. If the registered qualifying patient's certifying physician notifies the 9 department in writing that either the registered qualifying patient has ceased to suffer 10 from a debilitating medical condition or that the physician no longer believes the 11 patient would receive therapeutic or palliative benefit from the therapeutic use of 12 cannabis, the registry identification card issued to the patient shall become null and 13 void. The department shall provide written notice to the patient that the registry 14 identification card has been revoked. 15 B. The registered qualifying patient shall have fifteen days from receipt of 16 the department's notice of revocation to provide the department with a written 17 statement verifying that the patient has disposed of or given away any remaining 18 cannabis to another registered qualifying patient, caregiver, therapeutic cannabis 19 dispensary, or cannabis testing facility. If the patient is unable to provide the 20 required written verification due to age or medical condition, the notification shall 21 be made by the patient's previously designated caregiver. 22 SUBPART E. THERAPEUTIC CANNABIS ESTABLISHMENTS – 23 MANUFACTURERS 24 §1045.41. Therapeutic cannabis manufacturers; registration 25 A. No later than January 1, 2017, the Department of Agriculture and Forestry 26 shall begin accepting applications for a maximum of fifteen therapeutic cannabis 27 manufacturer registration certificates. 28 B. Each applicant shall submit to the department all of the following: 29 (1) An application fee. Page 18 of 38 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 16RS-1747 ORIGINAL HB NO. 1112 1 (2) An application which includes all of the following information: 2 (a) The legal name of the prospective therapeutic cannabis manufacturer. 3 (b) The physical address of the prospective therapeutic cannabis 4 manufacturer that is not within one thousand feet of a public or private school 5 existing before the date of the therapeutic cannabis manufacturer application. 6 (c) The name and date of birth of each principal officer and board member 7 of the proposed therapeutic cannabis manufacturer. 8 (d) The qualifications of the proposed managers including experience in 9 botany, chemistry, pharmacology, or therapeutic cannabis. 10 (e) Any additional information requested by the department. 11 (3) Operating procedures consistent with rules for oversight of the proposed 12 therapeutic cannabis manufacturers including procedures to ensure accurate 13 recordkeeping and adequate security measures. 14 (4) If the municipality or parish where the proposed therapeutic cannabis 15 manufacturer would be located has enacted zoning restrictions, a sworn statement 16 certifying that the proposed therapeutic cannabis manufacturer is in compliance with 17 the restrictions. 18 (5) If the municipality or parish where the proposed therapeutic cannabis 19 manufacturer would be located requires a local registration, license, or permit, a copy 20 of the registration, license, or permit. 21 C.(1) When granting registrations, the Department of Agriculture and 22 Forestry shall consider all of the following: 23 (a) The technical expertise of the manufacturer. 24 (b) The qualifications of the manufacturer's employees. 25 (c) The long-term financial stability of the manufacturer. 26 (d) The ability to provide appropriate security measures on the premises of 27 the manufacturer. 28 (e) The proposal's impact on the environment. Page 19 of 38 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 16RS-1747 ORIGINAL HB NO. 1112 1 (f) Whether the manufacturer has demonstrated an ability to meet the 2 therapeutic cannabis production needs. 3 (2) No later than March 1, 2017, the Department of Agriculture and Forestry 4 shall approve at least two therapeutic cannabis manufacturer applicants and shall 5 issue the manufacturers a registration certificate to produce therapeutic cannabis. 6 §1045.42. Therapeutic cannabis manufacturers; registration renewal 7 The Department Agriculture and Forestry shall issue a renewal registration 8 certificate within ten days of receipt of the prescribed renewal application and 9 renewal fee from a therapeutic cannabis manufacturer if the registration certificate 10 is not under suspension and has not been revoked. 11 §1045.43. Therapeutic cannabis manufacturers; registration revocation or 12 suspension 13 A. The Department of Agriculture and Forestry may, on its own motion or 14 upon receipt of a complaint, after investigation and opportunity for a public hearing 15 at which the therapeutic cannabis manufacturer has been afforded an opportunity to 16 be heard, suspend or revoke a registration certificate for multiple negligent, willful 17 or knowing violations or for a serious and knowing willful violation of this Part or 18 any rules promulgated pursuant to this Part by the registrant or any of its agents. 19 B. The Department of Agriculture and Forestry shall provide notice of 20 suspension, revocation, fine, or other sanction, as well as the required notice of the 21 hearing, by mailing the same in writing to the therapeutic cannabis manufacturer at 22 the address on the registration certificate. 23 C.(1) A suspension shall not be for a longer period than six months. 24 (2) A cannabis manufacturer may continue to cultivate and possess cannabis 25 plants during a suspension, but it shall not dispense, transfer, or sell cannabis. 26 D. Revocation shall be considered a final department action subject to 27 judicial review. Jurisdiction and venue for judicial review are vested in the First 28 Circuit Court of Appeal. Page 20 of 38 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 16RS-1747 ORIGINAL HB NO. 1112 1 §1045.44. Therapeutic cannabis manufacturers; reliable supply; security; production 2 by nonregistered manufacturer prohibited 3 A. Each therapeutic cannabis manufacturer shall provide a reliable and 4 ongoing supply of therapeutic cannabis needed for the registry program. 5 B.(1) All cultivation, harvesting, manufacture, and packaging of cannabis 6 shall take place in a secure facility at the physical address provided to the 7 Department of Agriculture and Forestry during the registration process. 8 (2) The secure facility shall only be accessed by agents of the therapeutic 9 cannabis establishment, emergency personnel, and adults who are twenty-one years 10 of age and older and who are accompanied by therapeutic cannabis establishment 11 agents. 12 C. No therapeutic cannabis establishment other than a registered cannabis 13 manufacturer shall produce cannabis concentrates, cannabis extractions, or other 14 cannabis products. 15 §1045.45. Therapeutic cannabis manufacturers; inspections 16 Therapeutic cannabis manufacturers are subject to inspection by the 17 Department of Agriculture and Forestry during business hours. 18SUBPART F. THERAPEUTIC CANNABIS ESTABLISHMENTS – DISPENSARIES 19 §1045.51. Therapeutic cannabis dispensaries; registration 20 A. No later than February 1, 2017, the Louisiana Board of Pharmacy shall 21 begin accepting applications for no more than twenty-five therapeutic cannabis 22 dispensary licenses. 23 B. Each applicant shall submit to the board all of the following: 24 (1) An application fee. 25 (2) An application which includes all of the following information: 26 (a) The legal name of the prospective therapeutic cannabis dispensary. 27 (b) The physical address of the prospective therapeutic cannabis dispensary 28 that is not within one thousand feet of a public or private school existing before the 29 date of the therapeutic cannabis dispensary application. Page 21 of 38 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 16RS-1747 ORIGINAL HB NO. 1112 1 (c) The name and date of birth of each principal officer and board member 2 of the proposed therapeutic cannabis dispensary. 3 (d) The qualifications of the proposed managers including experience in 4 botany, chemistry, pharmacology, or therapeutic cannabis. 5 (e) Any additional information requested by the department. 6 (3) Operating procedures consistent with rules for oversight of the proposed 7 therapeutic cannabis dispensaries including procedures to ensure accurate 8 recordkeeping and adequate security measures. 9 (4) If the municipality or parish where the proposed therapeutic cannabis 10 dispensary would be located has enacted zoning restrictions, a sworn statement 11 certifying that the proposed therapeutic cannabis dispensary is in compliance with 12 the restrictions. 13 (5) If the municipality or parish where the proposed therapeutic cannabis 14 dispensary requires a local registration, license, or permit, a copy of the registration, 15 license, or permit. 16 C.(1) When granting registrations, the board shall consider all of the 17 following: 18 (a) Geographic distribution of dispensaries throughout the state. 19 (b) The qualifications of the dispensary's managers and principals including 20 if the dispensary will have an onsite medical director with expertise in medicine or 21 pharmacy. 22 (c) The financial stability of the dispensary. 23 (d) The ability to provide appropriate security measures on the premises. 24 (e) Any plan to provide reduced cost cannabis to low-income patients. 25 (2) No later than March 1, 2017, the board shall approve at least ten 26 therapeutic cannabis dispensary applicants and shall issue the dispensaries a 27 registration certificate to dispense therapeutic cannabis. Page 22 of 38 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 16RS-1747 ORIGINAL HB NO. 1112 1 §1045.52. Therapeutic cannabis dispensaries; registration renewal 2 The Louisiana Board of Pharmacy shall issue a renewal registration 3 certificate within ten days of receipt of the prescribed renewal application and 4 renewal fee from a therapeutic cannabis dispensary if the registration certificate is 5 not under suspension and has not been revoked. 6 §1045.53. Therapeutic cannabis dispensaries; registration revocation or suspension 7 A. The Louisiana Board of Pharmacy may, on its own motion or upon 8 receipt of a complaint, after investigation and opportunity for a public hearing at 9 which the therapeutic cannabis dispensary has been afforded an opportunity to be 10 heard, suspend or revoke a registration certificate for multiple negligent, willful or 11 knowing violations or for a serious and knowing willful violation of this Part or any 12 rules promulgated pursuant to this Part by the registrant or any of its agents. 13 B. The Louisiana Board of Pharmacy shall provide notice of suspension, 14 revocation, fine, or other sanction, as well as the required notice of the hearing, by 15 mailing the same in writing to the therapeutic cannabis dispensary at the address on 16 the registration certificate. 17 C.(1) A suspension shall not be for a longer period than six months. 18 (2) A therapeutic cannabis dispensary may continue to possess cannabis 19 during a suspension, but it shall not dispense, transfer, or sell cannabis. 20 D. Revocation shall be considered a final board action subject to judicial 21 review. Jurisdiction and venue for judicial review are vested in the First Circuit 22 Court of Appeal. 23 §1045.54. Therapeutic cannabis dispensaries; dispensing procedures; maximum 24 allowable dispensed amount 25 A. Before dispensing cannabis to a registered cardholder, a therapeutic 26 cannabis dispensary agent shall do all of the following: 27 (1) Make a diligent effort to verify that the registry identification card or 28 registration presented to the dispensary is valid. Page 23 of 38 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 16RS-1747 ORIGINAL HB NO. 1112 1 (2) Make a diligent effort to verify that the person presenting the 2 documentation is the person identified on the document presented to the dispensary 3 agent. 4 (3) Make a diligent effort to verify that the amount dispensed will not cause 5 the person to possess more than the allowable amount of cannabis. 6 (4) Make a diligent effort to verify that the dispensary is one of the 7 dispensaries that has been designated by the cardholder. 8 B.(1) A therapeutic cannabis dispensary shall not dispense more than two 9 and one-half ounces of cannabis to a registered qualifying patient, directly or via a 10 designated caregiver, in any fourteen-day period. 11 (2) Therapeutic cannabis dispensaries shall ensure compliance with this 12 Subsection by maintaining internal, confidential records that include records 13 specifying how much cannabis is being dispensed to the registered qualifying patient 14 and whether it was dispensed directly to a registered qualifying patient or to the 15 designated caregiver. 16 §1045.55. Therapeutic cannabis dispensaries; inspections 17 Therapeutic cannabis dispensaries are subject to inspection by the Louisiana 18 Board of Pharmacy during business hours. 19 SUBPART G. THERAPEUTIC CANNABIS ESTABLISHMENTS – 20 TESTING FACILITIES 21 §1045.61. Cannabis testing facilities; registration 22 A. No later than February 1, 2017, the Department of Health and Hospitals 23 shall begin accepting applications for cannabis testing facilities. 24 B. Each applicant shall submit to the board all of the following: 25 (1) An application fee. 26 (2) An application which includes all of the following information: 27 (a) The legal name of the prospective cannabis testing facility. Page 24 of 38 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 16RS-1747 ORIGINAL HB NO. 1112 1 (b) The physical address of the prospective cannabis testing facility that is 2 not within one thousand feet of a public or private school existing before the date of 3 the cannabis testing facility application. 4 (c) The name and date of birth of each principal officer and board member 5 of the proposed cannabis testing facility. 6 (d) The qualifications of the proposed managers including experience in 7 botany, chemistry, pharmacology, or therapeutic cannabis. 8 (e) Any additional information requested by the department. 9 (3) Operating procedures consistent with rules for oversight of the proposed 10 cannabis testing facility including procedures to ensure accurate recordkeeping and 11 adequate security measures. 12 (4) If the municipality or parish where the proposed cannabis testing facility 13 would be located has enacted zoning restrictions, a sworn statement certifying that 14 the proposed cannabis testing facility is in compliance with the restrictions. 15 (5) If the municipality or parish where the proposed cannabis testing facility 16 requires a local registration, license, or permit, a copy of the registration, license, or 17 permit. 18 C.(1) When granting registrations, the department shall consider all of the 19 following: 20 (a) The technical expertise of the testing facility. 21 (b) The qualifications of the testing facility's employees. 22 (c) The ability to provide appropriate security measures on the premises. 23 (2) No later than March 1, 2017, the department shall approve at least two 24 cannabis testing facility applicants and shall issue the testing facilities a registration 25 certificate to test therapeutic cannabis. 26 §1045.62. Cannabis testing facilities; registration renewal 27 The department shall issue a renewal registration certificate within ten days 28 of receipt of the prescribed renewal application and renewal fee from a cannabis Page 25 of 38 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 16RS-1747 ORIGINAL HB NO. 1112 1 testing facility if the registration certificate is not under suspension and has not been 2 revoked. 3 §1045.63. Cannabis testing facilities; registration revocation or suspension 4 A. The department may, on its own motion or upon receipt of a complaint, 5 after investigation and opportunity for a public hearing at which the cannabis testing 6 facility has been afforded an opportunity to be heard, suspend or revoke a 7 registration certificate for multiple negligent, willful or knowing violations or for a 8 serious and knowing willful violation of this Part or any rules promulgated pursuant 9 to this Part by the registrant or any of its agents. 10 B. The department shall provide notice of suspension, revocation, fine, or 11 other sanction, as well as the required notice of the hearing, by mailing the same in 12 writing to the cannabis testing facility at the address on the registration certificate. 13 C.(1) A suspension shall not be for a longer period than six months. 14 (2) A cannabis testing facility may continue to possess cannabis during a 15 suspension, but it shall not receive, transfer, or sell cannabis. 16 D. Revocation shall be considered a final board action subject to judicial 17 review. Jurisdiction and venue for judicial review are vested in the First Circuit 18 Court of Appeal. 19 §1045.64. Cannabis testing facilities; inspections 20 Cannabis testing facilities are subject to inspection by the department during 21 business hours. 22 SUBPART H. LOCAL ORDINANCES 23 §1045.71. Local ordinances permitted 24 A.(1) A municipality or parish may enact ordinances prohibiting therapeutic 25 cannabis establishments in the municipality or parish or governing the time, place, 26 manner, and number of therapeutic cannabis establishment operations in the 27 municipality or parish. Page 26 of 38 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 16RS-1747 ORIGINAL HB NO. 1112 1 (2) A municipality or parish may establish penalties for violation of an 2 ordinance or regulations governing the time, place, and manner of a therapeutic 3 cannabis establishment that may operate in the municipality or parish. 4 (3) A municipality or parish may require a therapeutic cannabis 5 establishment to obtain a local license, permit, or registration to operate and may 6 charge a reasonable fee for the local license, permit, or registration. 7 SUBPART I. THERAPEUTIC CANNABIS ESTABLISHMENTS – 8 GENERAL REQUIREMENTS 9 §1045.81. Background checks required 10 A. Therapeutic cannabis establishments shall conduct a background check 11 into the criminal history of every person seeking to become a principal officer, board 12 member, agent, volunteer, or employee before the person begins working at the 13 therapeutic cannabis establishment. 14 B. A therapeutic cannabis establishment shall not employ any person who 15 was convicted of a disqualifying felony offense or who is under twenty-one years of 16 age. 17 §1045.82. Recordkeeping required 18 The operating documents of a therapeutic cannabis establishment shall 19 include procedures for the oversight of the therapeutic cannabis establishment and 20 procedures to ensure accurate recordkeeping. 21 §1045.83. Security measures required; theft or loss to be reported 22 A. A therapeutic cannabis establishment shall implement appropriate 23 security measures designed to deter and prevent the theft of cannabis and 24 unauthorized entrance into areas containing cannabis. 25 B. A therapeutic cannabis establishment shall notify the department and the 26 appropriate registering authority within one business day of any theft or significant 27 loss of cannabis. Page 27 of 38 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 16RS-1747 ORIGINAL HB NO. 1112 1 §1045.84. Prohibited acts; office sharing; patient referral 2 A therapeutic cannabis establishment shall not share office space with or 3 refer patients to a physician. 4 SUBPART J. REGULATORY AUTHORITY 5 §1045.91. Department of Agriculture; therapeutic cannabis manufacturers; 6 rulemaking 7 A. No later than November 1, 2016, the Department of Agriculture and 8 Forestry shall promulgate rules to address all of the following: 9 (1) The form and content of registration and renewal applications for 10 therapeutic cannabis manufacturers. 11 (2) Reasonable application and renewal fees for therapeutic cannabis 12 manufacturers not to exceed five thousand dollars that generate revenues sufficient 13 to offset all of the Department of Agriculture and Forestry's expenses for the 14 registering and regulating of therapeutic cannabis manufacturers. 15 (3) Procedures for suspending or terminating the registration certificate of 16 a therapeutic cannabis manufacturer that commits multiple or serious violations of 17 the provisions of this Part or the regulations promulgated pursuant to this Section. 18 (4) Regulation of therapeutic cannabis manufacturers with the goals of 19 ensuring the health and safety of qualifying patients and preventing diversion and 20 theft without imposing an undue burden upon or compromising the confidentiality 21 of cardholders including but not limited to all of the following: 22 (a) Oversight requirements. 23 (b) Recordkeeping requirements. 24 (c) Security requirements including but not limited to lighting, physical 25 security for both indoor and outdoor cultivation, and alarm requirements. 26 (d) Health and safety regulations including but not limited to restrictions on 27 the use of pesticides that are injurious to human health. 28 (e) Requirements for the transportation and storage of cannabis by 29 therapeutic cannabis manufacturers. Page 28 of 38 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 16RS-1747 ORIGINAL HB NO. 1112 1 (f) Employment and training requirements including but not limited to a 2 requirement that each therapeutic cannabis manufacturer create an identification 3 badge for each agent. 4 (g) Standards for the safe manufacture of cannabis products including but not 5 limited to extracts and concentrates. 6 (h) Requirements and procedures for the safe and accurate packaging and 7 labeling of therapeutic cannabis. 8 §1045.92. Department of Health and Hospitals; debilitating medical conditions; 9 registry identification cards; rulemaking 10 A. No later than September 1, 2016, the Louisiana Department of Health and 11 Hospitals shall promulgate rules to address all of the following: 12 (1) The manner in which the department shall consider petitions from the 13 public to add debilitating medical conditions or treatments to the list of debilitating 14 medical conditions pursuant to R.S. 40:1045.21 including but not limited to public 15 notice of and opportunities to comment in public hearings on the petitions. 16 (2) The manner in which the department shall consider applications for and 17 renewals of registry identification cards which may include creating a standardized 18 written certification form. 19 (3) Procedures for suspending or terminating the registry identification card 20 of a cardholder that commits multiple or serious violations of the provisions of this 21 Part or the regulations promulgated pursuant to this Section. 22 (4) Reasonable application and renewal fees for registry identification cards 23 set by a sliding scale based upon a qualifying patient's household income, the total 24 sum of which is no greater than the costs of processing applications and issuing 25 registry identification cards. 26 §1045.93. Louisiana Board of Pharmacy; therapeutic cannabis dispensaries; 27 rulemaking 28 A. No later than January 1, 2017, the Louisiana Board of Pharmacy shall 29 promulgate rules to address all of the following: Page 29 of 38 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 16RS-1747 ORIGINAL HB NO. 1112 1 (1) The form and content of registration and renewal applications for 2 therapeutic cannabis dispensaries. 3 (2) Procedures for suspending or terminating the registration certificate of 4 a therapeutic cannabis dispensary that commits multiple or serious violations of the 5 provisions of this Part or the regulations promulgated pursuant to this Section. 6 (3) The regulation of therapeutic cannabis dispensaries with the goals of 7 ensuring the health and safety of qualifying patients and preventing diversion and 8 theft without imposing an undue burden or compromising the confidentiality of 9 cardholders including but not limited to all of the following: 10 (a) Oversight requirements. 11 (b) Recordkeeping requirements. 12 (c) Security requirements including but no limited to lighting, physical 13 security, and alarm requirements. 14 (d) The storage of cannabis by therapeutic cannabis dispensaries. 15 (e) Employment and training requirements including but not limited to the 16 requirement that each therapeutic cannabis dispensary create an identification badge 17 for each agent. 18 (f) Restrictions on the advertising, signage, and display of therapeutic 19 cannabis. 20 (g) Requirements and procedures for the safe and accurate packaging of 21 therapeutic cannabis. 22 (4) Procedures for the safe delivery of cannabis from dispensaries to 23 cardholders. 24 (5) Labeling requirements for cannabis and cannabis products including but 25 not limited to requiring cannabis product labels to include all of the following 26 information: 27 (a) The length of time it typically takes for the product to take effect. 28 (b) Disclosure of ingredients and possible allergens. 29 (c) A nutritional fact panel. Page 30 of 38 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 16RS-1747 ORIGINAL HB NO. 1112 1 (d) If the cannabis product is edible, when practicable, a standard symbol 2 clearly indicating that the product contains cannabis. 3 (5) The maximum amount of cannabis products, including the amount of 4 concentrated cannabis, each cardholder is authorized to possess. 5 (6) Reasonable application and renewal fees for therapeutic cannabis 6 dispensary registration certificates not exceed five thousand dollars, with this upper 7 limit adjusted annually for inflation, the sum of which shall generate revenues 8 sufficient to offset all expenses of implementing and administering this Part. 9 §1045.94. Department of Health and Hospitals; therapeutic cannabis testing 10 facilities; rulemaking 11 No later than January 1, 2017, the department shall promulgate rules to 12 provide for standards for testing facilities including but not limited requirements for 13 equipment and qualifications for personnel. 14 SUBPART K. VIOLATIONS AND PENALTIES 15 §1045.101. Violations; penalties 16 A. A registered cardholder or therapeutic cannabis establishment who 17 willfully fails to provide a notice required by this Part shall be subject to a civil 18 penalty not to exceed one hundred fifty dollars. 19 B.(1) In addition to any other penalty applicable in law, a therapeutic 20 cannabis establishment or a therapeutic cannabis establishment agent who 21 intentionally sells or otherwise transfers cannabis in exchange for anything of value 22 to a person other than a registered cardholder or to a therapeutic cannabis 23 establishment or its agent shall be guilty of a felony punishable by imprisonment for 24 not more than two years or by payment of a fine of not more than three thousand 25 dollars, or both. 26 (2) A person convicted pursuant to this Subsection shall not continue to be 27 affiliated with the therapeutic cannabis establishment and shall be disqualified from 28 further participation as provided for in this Part. Page 31 of 38 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 16RS-1747 ORIGINAL HB NO. 1112 1 C. In addition to any other penalty applicable in law, a registered cardholder 2 who intentionally sells or otherwise transfers cannabis in exchange for anything of 3 value to a person other than a registered cardholder or to a therapeutic cannabis 4 establishment or its agent shall be guilty of a felony punishable by imprisonment for 5 not more than two years or by payment of a fine of not more than three thousand 6 dollars, or both. 7 D.(1) A person who intentionally makes a false statement to a law 8 enforcement official about any fact or circumstance relating to the therapeutic use 9 of cannabis to avoid arrest or prosecution shall be guilty of a misdemeanor 10 punishable by imprisonment for not more than ninety days or by payment of a fine 11 of not more than one thousand dollars, or both. This penalty shall be in addition to 12 any other penalties that may apply for making a false statement or for the possession, 13 cultivation, or sale of cannabis not protected by this Part. 14 (2) If a person found guilty pursuant to this Subsection is a registered 15 cardholder, the person is disqualified from further participation as provided in this 16 Part. 17 E. A person who knowingly submits false records or documentation required 18 pursuant to this Part to certify a therapeutic cannabis establishment shall be guilty 19 of a felony punishable by imprisonment for not more than two years or by payment 20 of a fine of not more than three thousand dollars, or both. 21 F. A physician who knowingly refers patients to a therapeutic cannabis 22 establishment or to a designated caregiver, who advertises in that therapeutic 23 cannabis establishment, or who issues written certifications while holding a financial 24 interest in a therapeutic cannabis establishment shall be fined up to one thousand 25 dollars. 26 G. It shall be a misdemeanor punishable by up to six months in jail and a five 27 hundred dollar fine for any person, including an employee or official of the 28 department or another state agency or local government, to knowingly breach the 29 confidentiality of information provided for in this Part. Page 32 of 38 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 16RS-1747 ORIGINAL HB NO. 1112 1 H. A therapeutic cannabis establishment shall be fined up to one thousand 2 dollars for any violation of this Part or the regulations issued pursuant to them where 3 no penalty has been specified. This penalty is in addition to any other penalties 4 applicable in law. 5 SUBPART L. CONFIDENTIALITY 6 §1045.111. Confidentiality of data; permissible disclosure 7 A. Data in registration applications and supporting data submitted by 8 qualifying patients, designated caregivers, and therapeutic cannabis establishments, 9 including data on designated caregivers and physicians, are private data on 10 individuals that is confidential and exempt from disclosure pursuant to the Louisiana 11 Public Records Law, RS 44.1 et seq. 12 B. Data kept or maintained by the Department of Health and Hospitals, 13 Department of Agriculture and Forestry, and the Louisiana Board of Pharmacy 14 pursuant to this Part shall not be used for any purpose not provided for in this Part 15 and shall not be combined or linked in any manner with any other list or database. 16 C. Data kept or maintained by the Department of Health and Hospitals, 17 Department of Agriculture and Forestry, and the Louisiana Board of Pharmacy 18 pursuant to this Part may be disclosed as necessary for any of the following reasons: 19 (1) Verification of registration certificates and registry identification cards 20 pursuant to this Part. 21 (2) Submission of the annual report as provided for in this Part. 22 (3) Notification of state or local law enforcement of apparent criminal 23 violations of this Part. 24 (4) Notification of state or local law enforcement about falsified or 25 fraudulent information submitted for purposes of obtaining or renewing a registry 26 identification card. 27 (5) Notification of the Louisiana State Board of Medical Examiners if there 28 is reason to believe that a physician provided a written certification without a bona Page 33 of 38 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 16RS-1747 ORIGINAL HB NO. 1112 1 fide physician-patient relationship, if the department has reason to believe the 2 physician otherwise violated the standard of care for evaluating medical conditions. 3 D. Any information kept or maintained by therapeutic cannabis 4 establishments shall identify cardholders by their registry identification numbers and 5 shall not contain names or other personally identifying information. 6 E. At the cardholder's request, the department may confirm the cardholder's 7 status as a registered qualifying patient or a registered designated caregiver to a third 8 party such as a landlord, school, medical professional, law enforcement authority, 9 or court. 10 F. Any hard drives or other data-recording media that are no longer in use 11 by the Department of Health and Hospital and that contain cardholder information 12 shall be timely destroyed. 13 SUBPART M. ADVISORY COMMITTEE 14 §1045.121. Advisory committee; members; meetings; terms; quorum 15 A. The legislature shall appoint an advisory committee comprised of all of 16 the following: 17 (1) One member of the House of Representatives. 18 (2) One member of the Senate. 19 (3) The secretary of the Department of Health and Hospitals or his designee. 20 (4) The president of the Louisiana Board of Pharmacy or his designee. 21 (5) The commissioner of the Department of Agriculture and Forestry or his 22 designee. 23 (6) One physician licensed to practice medicine in the state of Louisiana 24 with experience in therapeutic cannabis issues. 25 (7) One nurse licensed to practice nursing in the state of Louisiana with 26 experience in therapeutic cannabis issues. 27 (8) One board member or principal officer of a cannabis testing facility. 28 (9) One individual with experience in policy development or implementation 29 in the field of therapeutic cannabis. Page 34 of 38 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 16RS-1747 ORIGINAL HB NO. 1112 1 (10) Two qualifying patients. 2 B. The advisory committee shall meet at least two times per year for the 3 purpose of evaluating and making recommendations to the legislature and the 4 department regarding all of the following: 5 (1) The ability of qualifying patients in all areas of the state to obtain timely 6 access to a variety of strains of high-quality therapeutic cannabis. 7 (2) The effectiveness of the therapeutic cannabis establishment dispensaries, 8 individually and together, in serving the needs of qualifying patients including but 9 not limited to the provision of educational and support services by dispensaries, the 10 reasonableness of their prices, whether they are generating any complaints or 11 security problems, and the sufficiency of the number of them operating to effectively 12 serve the state's registered qualifying patients. 13 (3) Whether a single therapeutic cannabis manufacturer is sufficient to 14 provide steady access to a variety of cannabis products and strains at a reasonable 15 cost. 16 (4) The effectiveness of the cannabis testing facilities including but not 17 limited to whether a sufficient number are operating. 18 (5) The sufficiency of the regulatory and security safeguards contained in 19 this Part and in the regulations adopted pursuant to this Part to ensure that access to 20 and use of cannabis cultivated is provided only to cardholders. 21 (6) Whether additional qualifying medical conditions should be approved. 22 (7) Any recommended additions or revisions to this Part including but not 23 limited to provisions relating to security, safe handling, labeling, nomenclature, and 24 whether additional types and numbers of licenses should be made available. 25 (8) Any research studies regarding health effects of therapeutic cannabis for 26 patients. 27 C. Members shall serve without compensation. 28 D. The advisory committee shall elect a chairman and any other officers the 29 advisory committee deems necessary. Page 35 of 38 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 16RS-1747 ORIGINAL HB NO. 1112 1 E. Each member of the advisory committee shall serve a term concurrent 2 with the term of the legislature during which the member was appointed. Each 3 member shall succeed himself in each subsequent term thereafter unless removed or 4 replaced by the legislature. 5 F. Six members of the advisory committee shall constitute a quorum. 6 G. The secretary of the department shall convene the first meeting of the 7 advisory committee and shall designate department staff to assist the advisory 8 committee in performing its duties and responsibilities. 9 SUBPART N. ANNUAL REPORT 10 §1045.131. Annual report to legislature 11 A. The Department of Health and Hospitals, Department of Agriculture and 12 Forestry, and the Louisiana Board of Pharmacy shall jointly report annually to the 13 legislature on the findings and recommendations of the advisory committee 14 established pursuant to R.S. 40:1045.101, the number of applications for registry 15 identification cards received, the number of qualifying patients and designated 16 caregivers approved, the number of registry identification cards revoked, the number 17 of each type of therapeutic cannabis establishment that is registered, and the 18 expenses incurred and revenues generated from the therapeutic cannabis program. 19 B. The department shall not include identifying information on qualifying 20 patients, designated caregivers, or physicians in the report. 21 SUBPART O. CHOICE OF LAWS 22 §1045.141. Confidentiality of data; permissible disclosure 23 The growth, processing, manufacture, acquisition, transportation, sale, 24 dispensing, distribution, possession, and consumption of therapeutic cannabis or 25 related paraphernalia pursuant to this Part shall not be deemed to be a violation of 26 any other provision of state law including but not limited to the provisions of this 27 Chapter. If a provision of this Chapter relating to marijuana conflicts with a 28 provision of this Part, the provision of this Part shall take precedence. 29 Section 2. R.S. 44:4..1(B)(26) is hereby amended and reenacted to read as follows: Page 36 of 38 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 16RS-1747 ORIGINAL HB NO. 1112 1 §4.1. Exceptions 2 * * * 3 B. The legislature further recognizes that there exist exceptions, exemptions, 4 and limitations to the laws pertaining to public records throughout the revised 5 statutes and codes of this state. Therefore, the following exceptions, exemptions, and 6 limitations are hereby continued in effect by incorporation into this Chapter by 7 citation: 8 * * * 9 (26) R.S. 40:3.1, 31.14, 31.27, 39.1, 41, 73, 526, 528, 1007, 1045.91, 1098.8, 10 1232.7, 1299.6, 1299.35.10, 1299.44, 1299.85, 1299.87, 1300.14, 1300.54, 11 1379.1.1(D), 1379.3, 2009.8, 2009.14, 2010.5, 2017.9, 2018, 2019, 2020, 2106, 12 2109.1, 2138, 2532, 2845.1 13 * * * 14 Section 3. R.S. 40:1046 is hereby repealed in its entirety. 15 Section 4. This Act shall become effective upon signature by the governor or, if not 16signed by the governor, upon expiration of the time for bills to become law without signature 17by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If 18vetoed by the governor and subsequently approved by the legislature, this Act shall become 19effective on the day following such approval. 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)] HB 1112 Original 2016 Regular Session James Abstract: Establishes the Louisiana Therapeutic Use of Cannabis Act. Proposed law authorizes the therapeutic use of cannabis for persons who suffer from qualifying medical conditions. Proposed law requires qualifying patients and their designated caregivers to register with the Dept. of Health and Hospitals to receive a registry identification card and provides for the verification of the cards. Proposed provides for the registration of therapeutic cannabis manufacturers with the Dept. of Agriculture and Forestry dispensaries. Page 37 of 38 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 16RS-1747 ORIGINAL HB NO. 1112 Proposed provides for the registration of therapeutic cannabis dispensaries with the La. Board of Pharmacy. Proposed provides for the registration of cannabis testing facilities with the Dept. of Health and Hospitals. Proposed law authorizes local ordinances to regulate the dispensing or use of therapeutic cannabis. Proposed law requires the state regulatory entities to promulgate administrative rules to provide for regulation of the registrants. Proposed law establishes penalties for violations of proposed law. Proposed law provide for the confidentiality of data provided by registrants and creates an exemption to the Public Records Law for the data. Proposed law establishes an advisory committee appointed by the legislature. Proposed law requires the Dept. of Health and Hospitals to provide an annual report to the legislature. Proposed law provides that provisions of proposed law shall prevail over conflicting provisions of present law. Effective upon signature of the governor or lapse of time for gubernatorial action. (Adds R.S. 40:1045.1-1045.141; Amends R.S. 44:4.1(B)(26)) Page 38 of 38 CODING: Words in struck through type are deletions from existing law; words underscored are additions.