SLS 16RS-366 ENGROSSED 2016 Regular Session SENATE BILL NO. 271 BY SENATOR MILLS PHARMACISTS. Provides for medical marijuana. (gov sig) 1 AN ACT 2 To amend and reenact R.S. 40:1046 and to enact R.S. 40:1047, relative to medical 3 marijuana; to provide for physician requirements; to provide for definitions; to 4 provide for rulemaking requirements; to provide for responsibilities of certain 5 licensing boards and agencies; to provide for criminal background history; to provide 6 for enactment of provisions upon reclassification by the United States Drug 7 Enforcement Administration; to provide for an effective date; and to provide for 8 related matters. 9 Be it enacted by the Legislature of Louisiana: 10 Section 1. R.S. 40:1046 is hereby amended and reenacted and R.S. 40:1047 is hereby 11 enacted to read as follows: 12 §1046. Prescription Recommendation of marijuana for therapeutic use; rules and 13 regulations; Louisiana Board of Pharmacy and the adoption of rules 14 and regulations relating to the dispensing of prescribed 15 recommended marijuana for therapeutic use; the Department of 16 Agriculture and Forestry and the licensure of a production facility 17 A.(1) Notwithstanding any other provision of this Part, a physician licensed Page 1 of 19 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 271 SLS 16RS-366 ENGROSSED 1 by and in good standing with the Louisiana State Board of Medical Examiners 2 to practice medicine in this state and who is domiciled in this state may prescribe 3 recommend, in any form as permitted by the rules and regulations of the Louisiana 4 Board of Pharmacy except for inhalation, and raw or crude marijuana, 5 tetrahydrocannabinols, or a chemical derivative of tetrahydrocannabinols for 6 therapeutic use by patients clinically diagnosed as suffering from a debilitating 7 medical condition glaucoma, symptoms resulting from the administration of 8 chemotherapy cancer treatment, and spastic quadriplegia in accordance with rules 9 and regulations promulgated by the Louisiana State Board of Medical Examiners. 10 The Louisiana State Board of Medical Examiners shall submit to the Senate and 11 House committees on health and welfare on an annual basis not less than sixty days 12 prior to the beginning of the regular session of the legislature a report as to any 13 additional diseases or medical conditions that should be added to the list of eligible 14 diseases and conditions for prescription. 15 (2) For purposes of this Subsection, "debilitating medical condition" 16 means cancer, glaucoma, positive status for human immunodeficiency virus, 17 acquired immune deficiency syndrome, cachexia or wasting syndrome, seizure 18 disorders, epilepsy, spasticity, severe muscle spasms, Crohn's disease, muscular 19 dystrophy or multiple sclerosis. 20 (3) For purposes of this Part, "recommend" or "recommended" means 21 an order from a physician domiciled in Louisiana and licensed and in good 22 standing with the Louisiana Board of Medical Examiners and authorized by the 23 board to recommend medical marijuana that is patient specific and disease 24 specific in accordance with Paragraph (2) of this Subsection, and is 25 communicated by any means allowed by the Louisiana Board of Pharmacy to 26 a Louisiana licensed pharmacist in a Louisiana permitted dispensing pharmacy 27 as described in Subsection I of this Section, and is preserved on file as required 28 by Louisiana law or federal law regarding medical marijuana. 29 (4) Physicians shall recommend use of medical marijuana for treatment Page 2 of 19 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 271 SLS 16RS-366 ENGROSSED 1 of debilitating medical conditions in accordance with rules and regulations 2 promulgated by the Louisiana State Board of Medical Examiners. 3 (5) The Louisiana State Board of Medical Examiners shall submit to the 4 Senate and House committees on health and welfare on an annual basis not less 5 than sixty days prior to the beginning of the regular session of the legislature a 6 report as to any additional diseases or medical conditions that should be added 7 to the list of eligible diseases and conditions for recommendation. 8 B. The Louisiana State Board of Medical Examiners shall promulgate rules 9 and regulations authorizing physicians licensed to practice in this state to prescribe 10 recommend marijuana for therapeutic use by patients as described in Subsection A 11 of this Section no later than January 1, 2016. Any rules published by the Louisiana 12 State Board of Medical Examiners on or before January 1, 2016, that describe 13 the physician's authority to prescribe should be repromulgated to indicate that 14 he is "recommending" use of therapeutic marijuana. 15 C.(1) The Louisiana Board of Pharmacy shall adopt rules relating to the 16 dispensing of prescribed recommended marijuana for therapeutic use no later than 17 December 1, 2016. Any rules published by the Louisiana Board of Pharmacy on 18 or before January 1, 2016, that describe the pharmacist as dispensing medical 19 marijuana based on a physician's prescription should be repromulgated to 20 indicate that the physician is "recommending" use of therapeutic marijuana. 21 The Louisiana Board of Pharmacy shall seek input from groups including but not 22 limited to the following: 23 (a) The Louisiana District Attorneys Association. 24 (b) Professional law enforcement associations, organizations, and 25 commissions. 26 (2) The rules shall include but not be limited to: 27 (a) Standards, procedures, and protocols for the effective use of prescribed 28 recommended marijuana for therapeutic use as authorized by state law and related 29 rules and regulations. Page 3 of 19 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 271 SLS 16RS-366 ENGROSSED 1 (b) Standards, procedures, and protocols for the dispensing and tracking of 2 prescribed recommended therapeutic marijuana in Louisiana. 3 (c) Procedures and protocols to provide that no prescribed recommended 4 therapeutic marijuana may be dispensed from, produced from, obtained from, sold 5 to, or transferred to a location outside of this state. 6 (d) The establishment of standards, procedures, and protocols for determining 7 the amount of usable prescribed recommended therapeutic marijuana that is 8 necessary to constitute an adequate supply to ensure uninterrupted availability for a 9 period of one month, including amounts for topical treatments. 10 (e) The establishment of standards, procedures, and protocols to ensure that 11 all prescribed recommended therapeutic marijuana dispensed is consistently 12 pharmaceutical grade. 13 (f) The establishment of standards and procedures for the revocation, 14 suspension, and nonrenewal of licenses. 15 (g) The establishment of other licensing, renewal, and operational standards 16 which are deemed necessary by the Louisiana Board of Pharmacy. 17 (h) The establishment of standards and procedures for testing prescribed 18 recommended therapeutic marijuana samples for levels of tetrahydrocannabinol 19 (THC) or other testing parameters deemed appropriate by the Louisiana Board of 20 Pharmacy. 21 (i) The establishment of health, safety, and security requirements for 22 dispensers of prescribed therapeutic marijuana. 23 (j) Licensure of dispensers of prescribed therapeutic marijuana. 24 (k) The establishment of financial requirements for applicants of therapeutic 25 marijuana dispensing pharmacy license under which each applicant demonstrates the 26 following: 27 (i) The financial capacity to operate a therapeutic marijuana dispensing 28 pharmacy. 29 (ii) The ability to maintain an escrow account in a financial institution Page 4 of 19 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 271 SLS 16RS-366 ENGROSSED 1 headquartered in Louisiana in an amount of two million dollars, if required by the 2 Louisiana Board of Pharmacy. 3 D. The Louisiana Board of Pharmacy shall submit a report to the legislature 4 no later than January 1, 2016, with recommendations on possible fee amounts 5 relative to the provisions of this Section. 6 E. All rules shall be adopted in accordance with the provisions of the 7 Administrative Procedure Act. 8 F.D. Nothing in this Section shall be construed to prohibit the Louisiana State 9 Board of Medical Examiners or the Louisiana Board of Pharmacy from adopting 10 emergency rules as otherwise provided for in the Administrative Procedure Act. 11 G.E. Marijuana, tetrahydrocannabinols, or a chemical derivative of 12 tetrahydrocannabinols prescribed recommended pursuant to this Section shall be 13 dispensed in person from a licensed pharmacy in good standing located in Louisiana. 14 H.F. A prescriber and dispenser of person who recommends and person 15 who dispenses marijuana, tetrahydrocannabinols, or a chemical derivative of 16 tetrahydrocannabinols pursuant to this Section shall review the patient's information 17 in the Prescription Monitoring Program database prior to the prescribing 18 recommending and dispensing thereof. 19 I.G. The Louisiana Board of Pharmacy shall develop an annual, 20 nontransferable specialty license for a pharmacy to dispense prescribed 21 recommended marijuana for therapeutic use and shall limit the number of such 22 licenses granted in the state to no more than ten licensees. The Louisiana Board of 23 Pharmacy shall develop rules and regulations regarding the geographical locations 24 of dispensing pharmacies in Louisiana. 25 J.H.(1) The Department of Agriculture and Forestry shall develop the rules 26 and regulations regarding the production of prescribed recommended therapeutic 27 marijuana and the facility producing therapeutic marijuana. The rules and regulations 28 shall include but not be limited to the procedures for application, qualifications, 29 eligibility, background checks, and standards for suitability for a license and Page 5 of 19 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 271 SLS 16RS-366 ENGROSSED 1 penalties for violations of the rules and regulations. 2 (2)(a) The Department of Agriculture and Forestry shall develop an annual, 3 nontransferable specialty license for the production of prescribed recommended 4 marijuana for therapeutic use. and Other than the licenses granted pursuant to 5 Subparagraph (b) of this Paragraph, the Department of Agriculture and 6 Forestry shall limit the number of such licenses granted in the state to no more than 7 one licensee. The Louisiana State University Agricultural Center and the Southern 8 University Agricultural Center shall have the right of first refusal to be licensed as 9 the production facility, either separately or jointly. If neither of the centers exercise 10 this option, the license shall be awarded pursuant to the requirements provided for 11 in Paragraphs (3) through (5) of this Subsection. 12 (b) Prior to September 1, 2016, the Louisiana State University 13 Agricultural Center and the Southern University Agricultural Center shall each 14 provide written notice to the commissioner of agriculture and forestry of their 15 intent to be licensed as a production facility, either separately or jointly. 16 (3) The license shall be limited to one geographic location as provided for in 17 rule by the Department of Agriculture and Forestry. The geographic location shall 18 be a public record subject to disclosure under the Public Records Law, R.S. 44:1 et 19 seq. The licensee shall permit inspection of the production facility by any elected 20 member of the Louisiana Legislature upon request after receipt of reasonable notice. 21 (4)(a) The Department of Agriculture and Forestry shall grant the license 22 pursuant to a contract awarded through a competitive sealed bid or a competitive 23 sealed proposal as provided for in R.S. 39:1594 and 1595. The contract for the 24 license shall be subject to the Louisiana Procurement Code and shall not be subject 25 to any exceptions to or other variances from the Louisiana Procurement Code. The 26 contract shall not be awarded under the sole source procurement provisions provided 27 for in R.S. 39:1597. 28 (b) Any contract for the license awarded pursuant to this Subsection shall not 29 exceed five years. Page 6 of 19 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 271 SLS 16RS-366 ENGROSSED 1 (c) Any contract, memorandum of understanding, or cooperative endeavor 2 agreement entered into pursuant to this Section shall be a public record subject to 3 disclosure under the Public Records Law, R.S. 44:1 et seq. 4 (d) Any contract, memorandum of understanding, or cooperative endeavor 5 agreement entered into for services for the cultivation or processing in any way of 6 marijuana pursuant to this Section shall be a public record subject to disclosure under 7 the Public Records Law, R.S. 44:1 et seq. 8 (e) No person licensed pursuant to this Subsection shall subcontract for 9 services for the cultivation or processing in any way of marijuana if the 10 subcontractor, or any of the service providers in the chain of subcontractors, is 11 owned wholly or in part by any state employee or member of a state employee's 12 immediate family, including but not limited to any legislator, statewide public 13 official, university or community or technical college employee, Louisiana State 14 University Agricultural Center employee, or Southern University Agricultural Center 15 employee. For the purposes of this Paragraph, "immediate family" has the same 16 meaning as provided in R.S. 42:1102. 17 (f) Any bid for the license awarded pursuant to this Subsection shall include 18 proof of the financial capability of the bidder to operate a therapeutic marijuana 19 production facility including but not limited to a net worth of not less than one 20 million dollars. 21 (5) No person licensed pursuant to this Subsection shall give or receive 22 anything of value in connection with any contract, memorandum of understanding, 23 or cooperative endeavor agreement executed pursuant to this Subsection except the 24 value that is expressed in the contract, memorandum of understanding, or 25 cooperative endeavor agreement. 26 (6)(a) The Department of Agriculture shall collect the following information 27 from each licensee: 28 (i) The amount of gross marijuana produced by the licensee during each 29 calendar year. Page 7 of 19 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 271 SLS 16RS-366 ENGROSSED 1 (ii) The details of all production costs including but not limited to seed, 2 fertilizer, labor, advisory services, construction, and irrigation. 3 (iii) The details of any items or services for which the licensee subcontracted 4 and the costs of each subcontractor directly or indirectly working for the contractor. 5 (iv) The amount of therapeutic chemicals produced resulting from the 6 marijuana grown pursuant to this Section. 7 (v) The amounts paid each year to the licensee related to the licensee's 8 production of therapeutic marijuana pursuant to this Section. 9 (vi) The amount of therapeutic marijuana distributed to each pharmacy 10 licensed to dispense therapeutic marijuana in this state during each calendar year. 11 (b) The Department of Agriculture and Forestry shall provide the information 12 collected pursuant to this Paragraph for the previous calendar year in the form of a 13 written report to the Louisiana Legislature no later than February first of each year. 14 The department shall also make a copy of the report required by this Subparagraph 15 available to the public on the Internet. 16 (7) No company that has made a contribution to a candidate in a Louisiana 17 election governed by the provisions of the Campaign Finance Disclosure Act within 18 the five years prior to bidding for the license, or is controlled wholly or in part by a 19 person who made such a contribution within the five years prior to the company 20 bidding for the license, may be eligible for the license. 21 (8) The Department of Agriculture and Forestry shall submit a report to the 22 legislature no later than January 1, 2016, with recommendations on possible fee 23 amounts relative to the provisions of this Section. 24 K.I. The levels of THC in any marijuana produced pursuant to this Section 25 shall be reduced to the lowest acceptable therapeutic levels available through 26 scientifically accepted methods. 27 L.J. The provisions of this Section shall terminate on January 1, 2020. 28 §1047. Louisiana Department of Agriculture and Forestry; authorization to 29 obtain criminal history record information Page 8 of 19 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 271 SLS 16RS-366 ENGROSSED 1 A. As used in this Part the following terms shall have the following 2 meaning: 3 (1) "Applicant" means a natural person, a corporation, limited liability 4 company, partnership, joint stock association, sole proprietorship, joint 5 venture, business association, cooperative association, professional corporation 6 or any other legal entity or organization through which business is conducted. 7 (2) "Bureau" means the Louisiana Bureau of Criminal Identification and 8 Information of the office of state police within the Department of Public Safety 9 and Corrections. 10 (3) "Criminal history record information" means information collected 11 by state and federal criminal justice agencies on individuals consisting of 12 identifiable descriptions and notations of arrests, detentions, indictments, bills 13 of information, or any formal criminal charges, and any disposition arising 14 therefrom, including sentencing, criminal correctional supervision, and release. 15 It shall not include intelligence information gathered for investigatory purposes 16 or any identification information which does not indicate involvement of the 17 individual in the criminal justice system. 18 (4) "Department" means Louisiana Department of Agriculture and 19 Forestry. 20 (5) "FBI" means the Federal Bureau of Investigation of the United States 21 Department of Justice. 22 (6) "Licensure" means any license or permit that the department is 23 authorized to issue for the production of prescribed therapeutic marijuana and 24 the facility producing therapeutic marijuana. 25 B. In addition to any other requirements established by department 26 rules, the department shall require an applicant, as a condition of eligibility for 27 licensure: 28 (1) To submit a full set of fingerprints, in a form and manner prescribed 29 by the department. Page 9 of 19 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 271 SLS 16RS-366 ENGROSSED 1 (2) To permit the department to request and obtain state and national 2 criminal history record information on the applicant. 3 (3) To pay the reasonable costs to be incurred by the department in 4 requesting and obtaining state and national criminal history record information 5 on the applicant. 6 C. In accordance with the provisions and procedure prescribed by this 7 Part, the department shall request and obtain state and national criminal 8 history record information from the bureau and the FBI relative to any 9 applicant for licensure whose fingerprints the department has obtained 10 pursuant to this Part for the purpose of determining the applicant's suitability 11 and eligibility for licensure. 12 D. Upon request by the department and upon submission of an 13 applicant's fingerprints, and such other identifying information as may be 14 required, the bureau shall survey its criminal history records and identification 15 files and make a simultaneous request of the FBI for like information from 16 other jurisdictions. The bureau may charge the department a reasonable 17 processing fee for conducting and reporting on any such search. 18 E. Any and all state or national criminal history record information 19 obtained by the department from the bureau or FBI which is not already a 20 matter of public record shall be deemed nonpublic and confidential information 21 restricted to the exclusive use by the department in evaluating the applicant's 22 eligibility or disqualification for licensure. No such information or records 23 related thereto shall, except with the written consent of the applicant or by 24 order of a court of competent jurisdiction, be released or otherwise disclosed by 25 the department to any other person or agency. 26 Section 2. R.S. 40:1046 is hereby amended and reenacted to read as follows: 27 §1046. Prescription of marijuana for therapeutic use; rules and regulations; 28 Louisiana Board of Pharmacy and the adoption of rules and 29 regulations relating to the dispensing of prescribed marijuana for Page 10 of 19 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 271 SLS 16RS-366 ENGROSSED 1 therapeutic use; the Department of Agriculture and Forestry and the 2 licensure of a production facility 3 A.(1) Notwithstanding any other provision of this Part, a physician licensed 4 by and in good standing with the Louisiana State Board of Medical Examiners 5 to practice medicine in this state and who is domiciled in this state may prescribe, 6 in any form as permitted by the rules and regulations of the Louisiana Board of 7 Pharmacy except for inhalation, and raw or crude marijuana, tetrahydrocannabinols, 8 or a chemical derivative of tetrahydrocannabinols for therapeutic use by patients 9 clinically diagnosed as suffering from a debilitating medical condition glaucoma, 10 symptoms resulting from the administration of chemotherapy cancer treatment, and 11 spastic quadriplegia in accordance with rules and regulations promulgated by the 12 Louisiana State Board of Medical Examiners. The Louisiana State Board of Medical 13 Examiners shall submit to the Senate and House committees on health and welfare 14 on an annual basis not less than sixty days prior to the beginning of the regular 15 session of the legislature a report as to any additional diseases or medical conditions 16 that should be added to the list of eligible diseases and conditions for prescription. 17 (2) For purposes of this Subsection, "debilitating medical condition" 18 means cancer, glaucoma, positive status for human immunodeficiency virus, 19 acquired immune deficiency syndrome, cachexia or wasting syndrome, seizure 20 disorders, epilepsy, spasticity, severe muscle spasms, Crohn's disease or 21 multiple sclerosis. 22 (3) For purposes of this Part, "prescribe" or "prescription" means an 23 order from a physician domiciled in Louisiana and licensed and in good 24 standing with the Louisiana Board of Medical Examiners and authorized by the 25 board to prescribe medical marijuana that is patient specific and disease 26 specific in accordance with Paragraph (2) of this Subsection, and is 27 communicated by any means allowed by the Louisiana Board of Pharmacy to 28 a Louisiana licensed pharmacist in a Louisiana permitted dispensing pharmacy 29 as described in Subsection I of this Section, and is preserved on file as required Page 11 of 19 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 271 SLS 16RS-366 ENGROSSED 1 by Louisiana law or federal law regarding medical marijuana. 2 (4) Physicians shall prescribe the use of medical marijuana for treatment 3 of debilitating medical conditions in accordance with rules and regulations 4 promulgated by the Louisiana State Board of Medical Examiners. 5 (5) The Louisiana State Board of Medical Examiners shall submit to the 6 Senate and House committees on health and welfare on an annual basis not less 7 than sixty days prior to the beginning of the regular session of the legislature a 8 report as to any additional diseases or medical conditions that should be added 9 to the list of eligible diseases and conditions for recommendation. 10 B. The Louisiana State Board of Medical Examiners shall promulgate rules 11 and regulations authorizing physicians licensed to practice in this state to prescribe 12 marijuana for therapeutic use by patients as described in Subsection A of this Section 13 no later than January 1, 2016. 14 C.(1) The Louisiana Board of Pharmacy shall adopt rules relating to the 15 dispensing of prescribed marijuana for therapeutic use no later than December 1, 16 2016. The Louisiana Board of Pharmacy shall seek input from groups including but 17 not limited to the following: 18 (a) The Louisiana District Attorneys Association. 19 (b) Professional law enforcement associations, organizations, and 20 commissions. 21 (2) The rules shall include but not be limited to: 22 (a) Standards, procedures, and protocols for the effective use of prescribed 23 marijuana for therapeutic use as authorized by state law and related rules and 24 regulations. 25 (b) Standards, procedures, and protocols for the dispensing and tracking of 26 prescribed therapeutic marijuana in Louisiana. 27 (c) Procedures and protocols to provide that no prescribed therapeutic 28 marijuana may be dispensed from, produced from, obtained from, sold to, or 29 transferred to a location outside of this state. Page 12 of 19 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 271 SLS 16RS-366 ENGROSSED 1 (d) The establishment of standards, procedures, and protocols for determining 2 the amount of usable prescribed therapeutic marijuana that is necessary to constitute 3 an adequate supply to ensure uninterrupted availability for a period of one month, 4 including amounts for topical treatments. 5 (e) The establishment of standards, procedures, and protocols to ensure that 6 all prescribed therapeutic marijuana dispensed is consistently pharmaceutical grade. 7 (f) The establishment of standards and procedures for the revocation, 8 suspension, and nonrenewal of licenses. 9 (g) The establishment of other licensing, renewal, and operational standards 10 which are deemed necessary by the Louisiana Board of Pharmacy. 11 (h) The establishment of standards and procedures for testing prescribed 12 therapeutic marijuana samples for levels of tetrahydrocannabinol (THC) or other 13 testing parameters deemed appropriate by the Louisiana Board of Pharmacy. 14 (i) The establishment of health, safety, and security requirements for 15 dispensers of prescribed therapeutic marijuana. 16 (j) Licensure of dispensers of prescribed therapeutic marijuana. 17 (k) The establishment of financial requirements for applicants of therapeutic 18 marijuana dispensing pharmacy license under which each applicant demonstrates the 19 following: 20 (i) The financial capacity to operate a therapeutic marijuana dispensing 21 pharmacy. 22 (ii) The ability to maintain an escrow account in a financial institution 23 headquartered in Louisiana in an amount of two million dollars, if required by the 24 Louisiana Board of Pharmacy. 25 D. The Louisiana Board of Pharmacy shall submit a report to the legislature 26 no later than January 1, 2016, with recommendations on possible fee amounts 27 relative to the provisions of this Section. 28 E. All rules shall be adopted in accordance with the provisions of the 29 Administrative Procedure Act. Page 13 of 19 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 271 SLS 16RS-366 ENGROSSED 1 F.D. Nothing in this Section shall be construed to prohibit the Louisiana State 2 Board of Medical Examiners or the Louisiana Board of Pharmacy from adopting 3 emergency rules as otherwise provided for in the Administrative Procedure Act. 4 G.E. Marijuana, tetrahydrocannabinols, or a chemical derivative of 5 tetrahydrocannabinols prescribed pursuant to this Section shall be dispensed in 6 person from a licensed pharmacy in good standing located in Louisiana. 7 H.F. A prescriber and dispenser of marijuana, tetrahydrocannabinols, or a 8 chemical derivative of tetrahydrocannabinols pursuant to this Section shall review 9 the patient's information in the Prescription Monitoring Program database prior to 10 the prescribing and dispensing thereof. 11 I.G. The Louisiana Board of Pharmacy shall develop an annual, 12 nontransferable specialty license for a pharmacy to dispense prescribed marijuana 13 for therapeutic use and shall limit the number of such licenses granted in the state to 14 no more than ten licensees. The Louisiana Board of Pharmacy shall develop rules 15 and regulations regarding the geographical locations of dispensing pharmacies in 16 Louisiana. 17 J.H.(1) The Department of Agriculture and Forestry shall develop the rules 18 and regulations regarding the production of prescribed therapeutic marijuana and the 19 facility producing therapeutic marijuana. The rules and regulations shall include but 20 not be limited to the procedures for application, qualifications, eligibility, 21 background checks, and standards for suitability for a license and penalties for 22 violations of the rules and regulations. 23 (2) (a) The Department of Agriculture and Forestry shall develop an annual, 24 nontransferable specialty license for the production of prescribed marijuana for 25 therapeutic use. and Other than the licenses granted pursuant to Subparagraph 26 (b) of this Paragraph, the Department of Agriculture and Forestry shall limit the 27 number of such licenses granted in the state to no more than one licensee. The 28 Louisiana State University Agricultural Center and the Southern University 29 Agricultural Center shall have the right of first refusal to be licensed as the Page 14 of 19 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 271 SLS 16RS-366 ENGROSSED 1 production facility, either separately or jointly. If neither of the centers exercise this 2 option, the license shall be awarded pursuant to the requirements provided for in 3 Paragraphs (3) through (5) of this Subsection. 4 (b) Prior to September 1, 2016, the Louisiana State University 5 Agricultural Center and the Southern University Agricultural Center shall each 6 provide written notice to the commissioner of agriculture and forestry of their 7 intent to be licensed as a production facility, either separately or jointly. 8 (3) The license shall be limited to one geographic location as provided for in 9 rule by the Department of Agriculture and Forestry. The geographic location shall 10 be a public record subject to disclosure under the Public Records Law, R.S. 44:1 et 11 seq. The licensee shall permit inspection of the production facility by any elected 12 member of the Louisiana Legislature upon request after receipt of reasonable notice. 13 (4)(a) The Department of Agriculture and Forestry shall grant the license 14 pursuant to a contract awarded through a competitive sealed bid or a competitive 15 sealed proposal as provided for in R.S. 39:1594 and 1595. The contract for the 16 license shall be subject to the Louisiana Procurement Code and shall not be subject 17 to any exceptions to or other variances from the Louisiana Procurement Code. The 18 contract shall not be awarded under the sole source procurement provisions provided 19 for in R.S. 39:1597. 20 (b) Any contract for the license awarded pursuant to this Subsection shall not 21 exceed five years. 22 (c) Any contract, memorandum of understanding, or cooperative endeavor 23 agreement entered into pursuant to this Section shall be a public record subject to 24 disclosure under the Public Records Law, R.S. 44:1 et seq. 25 (d) Any contract, memorandum of understanding, or cooperative endeavor 26 agreement entered into for services for the cultivation or processing in any way of 27 marijuana pursuant to this Section shall be a public record subject to disclosure under 28 the Public Records Law, R.S. 44:1 et seq. 29 (e) No person licensed pursuant to this Subsection shall subcontract for Page 15 of 19 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 271 SLS 16RS-366 ENGROSSED 1 services for the cultivation or processing in any way of marijuana if the 2 subcontractor, or any of the service providers in the chain of subcontractors, is 3 owned wholly or in part by any state employee or member of a state employee's 4 immediate family, including but not limited to any legislator, statewide public 5 official, university or community or technical college employee, Louisiana State 6 University Agricultural Center employee, or Southern University Agricultural Center 7 employee. For the purposes of this Paragraph, "immediate family" has the same 8 meaning as provided in R.S. 42:1102. 9 (f) Any bid for the license awarded pursuant to this Subsection shall include 10 proof of the financial capability of the bidder to operate a therapeutic marijuana 11 production facility including but not limited to a net worth of not less than one 12 million dollars. 13 (5) No person licensed pursuant to this Subsection shall give or receive 14 anything of value in connection with any contract, memorandum of understanding, 15 or cooperative endeavor agreement executed pursuant to this Subsection except the 16 value that is expressed in the contract, memorandum of understanding, or 17 cooperative endeavor agreement. 18 (6)(a) The Department of Agriculture shall collect the following information 19 from each licensee: 20 (i) The amount of gross marijuana produced by the licensee during each 21 calendar year. 22 (ii) The details of all production costs including but not limited to seed, 23 fertilizer, labor, advisory services, construction, and irrigation. 24 (iii) The details of any items or services for which the licensee subcontracted 25 and the costs of each subcontractor directly or indirectly working for the contractor. 26 (iv) The amount of therapeutic chemicals produced resulting from the 27 marijuana grown pursuant to this Section. 28 (v) The amounts paid each year to the licensee related to the licensee's 29 production of therapeutic marijuana pursuant to this Section. Page 16 of 19 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 271 SLS 16RS-366 ENGROSSED 1 (vi) The amount of therapeutic marijuana distributed to each pharmacy 2 licensed to dispense therapeutic marijuana in this state during each calendar year. 3 (b) The Department of Agriculture and Forestry shall provide the information 4 collected pursuant to this Paragraph for the previous calendar year in the form of a 5 written report to the Louisiana Legislature no later than February first of each year. 6 The department shall also make a copy of the report required by this Subparagraph 7 available to the public on the Internet. 8 (7) No company that has made a contribution to a candidate in a Louisiana 9 election governed by the provisions of the Campaign Finance Disclosure Act within 10 the five years prior to bidding for the license, or is controlled wholly or in part by a 11 person who made such a contribution within the five years prior to the company 12 bidding for the license, may be eligible for the license. 13 (8) The Department of Agriculture and Forestry shall submit a report to the 14 legislature no later than January 1, 2016, with recommendations on possible fee 15 amounts relative to the provisions of this Section. 16 K.I. The levels of THC in any marijuana produced pursuant to this Section 17 shall be reduced to the lowest acceptable therapeutic levels available through 18 scientifically accepted methods. 19 L.J. The provisions of this Section shall terminate on January 1, 2020. 20 Section 3. This Act shall become effective upon signature by the governor or, if not 21 signed by the governor, upon expiration of the time for bills to become law without signature 22 by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If 23 vetoed by the governor and subsequently approved by the legislature, this Act shall become 24 effective on the day following such approval. 25 Section 4. The provisions of Section 1 of this Act amending and reenacting R.S. 26 40:1046 shall become null and void and of no effect upon the reclassification by the United 27 States Drug Enforcement Administration of marijuana from a Schedule I drug to a Schedule 28 II drug under the authority of the Controlled Substances Act, 21 U.S.C. §801 et seq., at 29 which time the provisions of Section 2 of this Act amending and reenacting R.S. 40:1046 Page 17 of 19 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 271 SLS 16RS-366 ENGROSSED 1 shall become effective. The original instrument and the following digest, which constitutes no part of the legislative instrument, were prepared by Christine Arbo Peck. DIGEST SB 271 Engrossed 2016 Regular Session Mills Present law provides for medical marijuana to be prescribed. Proposed law changes prescribed to recommended. Present law provides that medical marijuana can be prescribed for glaucoma, symptoms resulting from the administration of chemotherapy cancer treatment and spastic quadriplegia. Proposed law changes the disease states to debilitating medical conditions (cancer, glaucoma, positive status for human immunodeficiency virus, acquired immune deficiency syndrome, cachexia or wasting syndrome, seizure disorders, epilepsy, spasticity, severe muscle spasms, Crohn's disease, muscular dystrophy or multiple sclerosis). Proposed law adds a definition of "recommend" or "recommended" as an order from a physician domiciled in Louisiana and licensed and in good standing with the Louisiana Board of Medical Examiners and authorized by the board to recommend medical marijuana that is patient specific and disease specific in accordance with present law and is communicated by any means allowed by the Louisiana Board of Pharmacy to a Louisiana licensed pharmacist in a Louisiana permitted dispensing pharmacy as described in present law and is preserved on file as required by Louisiana law or federal law regarding medical marijuana. Present law required the recommending physician to be licensed to practice medicine in this state. Proposed law requires the recommending physician to be licensed by the Louisiana State Board of Medical Examiners, in good standing with the board and domiciled in Louisiana. Proposed law clarifies that the Louisiana State University Agricultural Center and the Southern University Agricultural Center shall have separate licenses if they exercise their right of first refusal and that they need to make that determination by September 1, 2016. Proposed law adds authorization for the Department of Agriculture and Forestry to obtain criminal history record information on applicants for licensure as a producer of therapeutic marijuana. Proposed law provides a separate effective date for certain provisions of the law that if the United States Drug Enforcement Administration reclassifies marijuana from a Schedule I drug to a Schedule II drug, proposed law will change from authorizing the recommendation by a physician for use of medical marijuana to a prescription by a physician for use of medical marijuana. Present law provides for reporting and rule promulgation deadlines that have passed. Proposed law repeals deadlines that have passed and instructs the boards to update their rules to reflect the change in proposed law from prescribed to recommended. Effective upon signature of the governor or upon lapse of time for gubernatorial action. (Amends R.S. 40:1046) Page 18 of 19 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 271 SLS 16RS-366 ENGROSSED Summary of Amendments Adopted by Senate Committee Amendments Proposed by Senate Committee on Health and Welfare to the original bill 1. Adds spasticity and muscular dystrophy as disease states defined as debilitating medical conditions and removes ancillary language regarding disease state that could have been misinterpreted. 2. Adds provisions granting authorization for the Department of Agriculture and Forestry to obtain criminal history record information on applicants for licensure as a producer of medical marijuana. 3. Clarifies that the Louisiana State University Agricultural Center and the Southern University Agricultural Center shall have separate licenses if they exercise their right of first refusal and that they need to make that determination by September 1, 2016. 4. Provides an alternative effective date to change "recommend" to "prescribe" upon reclassification of marijuana from a Schedule I drug to a Schedule II drug by the United States Drug Enforcement Administration. Page 19 of 19 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions.