2016 Regular Session ENROLLED SENATE BILL NO. 271 BY SENATOR MILLS AND REPRESENTATIVES BAGNERIS, CHAD BROWN, GARY CARTER, ROBBY CARTER, FALCONER, GLOVER, HAVARD, HUNTER, HUVAL, JAMES, JONES, TERRY LANDRY, LEBAS, MAGEE, MARCELLE, MORENO, NORTON, PIERRE AND SMITH 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 ENROLLED 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)(a) For purposes of this Subsection, "debilitating medical condition" 16 means cancer, positive status for human immunodeficiency virus, acquired 17 immune deficiency syndrome, cachexia or wasting syndrome, seizure disorders, 18 epilepsy, spasticity, Crohn's disease, muscular dystrophy, or multiple sclerosis. 19 (b) If the United States Food and Drug Administration approves the use 20 of medical marijuana in the same form provided for in this Part for any 21 debilitating medical condition specifically identified in this Paragraph, that 22 medical condition shall no longer be covered by the provisions of this Part. 23 (c) If the United States Food and Drug Administration approves the use 24 of medical marijuana in a form or derivative different than provided for in this 25 Part for any debilitating medical condition specifically identified in this 26 Paragraph, the disease state shall remain covered by the provisions of this Part. 27 The patient shall first be treated by the approved form or derivative of medical 28 marijuana through utilization of step therapy or fail first protocols. If, after use 29 of the United States Food and Drug Administration approved form or 30 derivative of medical marijuana, the physician determines that the preferred 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 ENROLLED 1 treatment required under step therapy or fail first protocol has been ineffective 2 in the treatment of the patient's debilitating medical condition, he may 3 recommend the form of medical marijuana provided for in this Part for use by 4 the patient as medically necessary. 5 (3) For purposes of this Part, "recommend" or "recommended" means 6 an order from a physician domiciled in Louisiana and licensed and in good 7 standing with the Louisiana Board of Medical Examiners and authorized by the 8 board to recommend medical marijuana that is patient-specific and 9 disease-specific in accordance with Paragraph (2) of this Subsection, and is 10 communicated by any means allowed by the Louisiana Board of Pharmacy to 11 a Louisiana-licensed pharmacist in a Louisiana-permitted dispensing pharmacy 12 as described in Subsection G of this Section, and is preserved on file as required 13 by Louisiana law or federal law regarding medical marijuana. 14 (4) Physicians shall recommend use of medical marijuana for treatment 15 of debilitating medical conditions in accordance with rules and regulations 16 promulgated by the Louisiana State Board of Medical Examiners. 17 (5) The Louisiana State Board of Medical Examiners shall submit to the 18 Senate and House committees on health and welfare on an annual basis not less 19 than sixty days prior to the beginning of the regular session of the legislature a 20 report as to any additional diseases or medical conditions that should be added 21 to the list of eligible diseases and conditions for recommendation. 22 B. The Louisiana State Board of Medical Examiners shall promulgate rules 23 and regulations authorizing physicians licensed to practice in this state to prescribe 24 recommend marijuana for therapeutic use by patients as described in Subsection A 25 of this Section no later than January 1, 2016. Any rules published by the Louisiana 26 State Board of Medical Examiners on or before January 1, 2016, that describe 27 the physician's authority to prescribe should be repromulgated to indicate that 28 he is "recommending" use of therapeutic marijuana. 29 C.(1) The Louisiana Board of Pharmacy shall adopt rules relating to the 30 dispensing of prescribed recommended marijuana for therapeutic use no later than 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 ENROLLED 1 December 1, 2016. Any rules published by the Louisiana Board of Pharmacy on 2 or before January 1, 2016, that describe the pharmacist as dispensing medical 3 marijuana based on a physician's prescription should be repromulgated to 4 indicate that the physician is "recommending" use of therapeutic marijuana. 5 The Louisiana Board of Pharmacy shall seek input from groups including but not 6 limited to the following: 7 (a) The Louisiana District Attorneys Association. 8 (b) Professional law enforcement associations, organizations, and 9 commissions. 10 (2) The rules shall include but not be limited to: 11 (a) Standards, procedures, and protocols for the effective use of prescribed 12 recommended marijuana for therapeutic use as authorized by state law and related 13 rules and regulations. 14 (b) Standards, procedures, and protocols for the dispensing and tracking of 15 prescribed recommended therapeutic marijuana in Louisiana. 16 (c) Procedures and protocols to provide that no prescribed recommended 17 therapeutic marijuana may be dispensed from, produced from, obtained from, sold 18 to, or transferred to a location outside of this state. 19 (d) The establishment of standards, procedures, and protocols for determining 20 the amount of usable prescribed recommended therapeutic marijuana that is 21 necessary to constitute an adequate supply to ensure uninterrupted availability for a 22 period of one month, including amounts for topical treatments. 23 (e) The establishment of standards, procedures, and protocols to ensure that 24 all prescribed recommended therapeutic marijuana dispensed is consistently 25 pharmaceutical grade. 26 (f) The establishment of standards and procedures for the revocation, 27 suspension, and nonrenewal of licenses. 28 (g) The establishment of other licensing, renewal, and operational standards 29 which are deemed necessary by the Louisiana Board of Pharmacy. 30 (h) The establishment of standards and procedures for testing prescribed 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 ENROLLED 1 recommended therapeutic marijuana samples for levels of tetrahydrocannabinol 2 (THC) or other testing parameters deemed appropriate by the Louisiana Board of 3 Pharmacy. 4 (i) The establishment of health, safety, and security requirements for 5 dispensers of prescribed recommended therapeutic marijuana. 6 (j) Licensure of dispensers of prescribed recommended therapeutic 7 marijuana. 8 (k) The establishment of financial requirements for applicants of therapeutic 9 marijuana dispensing pharmacy license under which each applicant demonstrates the 10 following: 11 (i) The financial capacity to operate a therapeutic marijuana dispensing 12 pharmacy. 13 (ii) The ability to maintain an escrow account in a financial institution 14 headquartered in Louisiana in an amount of two million dollars, if required by the 15 Louisiana Board of Pharmacy. 16 D. The Louisiana Board of Pharmacy shall submit a report to the legislature 17 no later than January 1, 2016, with recommendations on possible fee amounts 18 relative to the provisions of this Section. 19 E. All rules shall be adopted in accordance with the provisions of the 20 Administrative Procedure Act. 21 F.D. Nothing in this Section shall be construed to prohibit the Louisiana State 22 Board of Medical Examiners or the Louisiana Board of Pharmacy from adopting 23 emergency rules as otherwise provided for in the Administrative Procedure Act. 24 G.E. Marijuana, tetrahydrocannabinols, or a chemical derivative of 25 tetrahydrocannabinols prescribed recommended pursuant to this Section shall be 26 dispensed in person from a licensed pharmacy in good standing located in Louisiana. 27 H.F. A prescriber and dispenser of person who recommends and person 28 who dispenses marijuana, tetrahydrocannabinols, or a chemical derivative of 29 tetrahydrocannabinols pursuant to this Section shall review the patient's information 30 in the Prescription Monitoring Program database prior to the prescribing 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 ENROLLED 1 recommending and dispensing thereof. 2 I.G. The Louisiana Board of Pharmacy shall develop an annual, 3 nontransferable specialty license for a pharmacy to dispense prescribed 4 recommended marijuana for therapeutic use and shall limit the number of such 5 licenses granted in the state to no more than ten licensees. The Louisiana Board of 6 Pharmacy shall develop rules and regulations regarding the geographical locations 7 of dispensing pharmacies in Louisiana. 8 J.(1) H.(1)(a) The Department of Agriculture and Forestry shall develop the 9 rules and regulations regarding the extraction, processing, and production of 10 prescribed recommended therapeutic marijuana and the facility producing 11 therapeutic marijuana. The rules and regulations shall include but not be limited 12 to both of the following minimum standards: 13 (i) In order to mitigate the risk of bacterial contamination, food-grade 14 ethanol extraction shall be used. 15 (ii) The extraction and refining process shall produce a product that is 16 food safe and capable of producing pharmaceutical-grade products. 17 (b) The rules and regulations shall also include but not be limited to the 18 procedures for application, qualifications, eligibility, background checks, and 19 standards for suitability for a license and penalties for violations of the rules and 20 regulations. 21 (2)(a) The Department of Agriculture and Forestry shall develop an annual, 22 nontransferable specialty license for the production of prescribed recommended 23 marijuana for therapeutic use. and Other than the licenses granted pursuant to 24 Subparagraph (b) of this Paragraph, the Department of Agriculture and 25 Forestry shall limit the number of such licenses granted in the state to no more than 26 one licensee. The Louisiana State University Agricultural Center and the Southern 27 University Agricultural Center shall have the right of first refusal to be licensed as 28 the production facility, either separately or jointly. If neither of the centers exercise 29 this option, the license shall be awarded pursuant to the requirements provided for 30 in Paragraphs (3) through (5) of this Subsection. 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 ENROLLED 1 (b) Prior to September 1, 2016, the Louisiana State University 2 Agricultural Center and the Southern University Agricultural Center shall each 3 provide written notice to the commissioner of agriculture and forestry of their 4 intent to be licensed as a production facility, either separately or jointly. 5 (c) The Louisiana State University Agricultural Center or the Southern 6 University Agricultural Center may conduct research on marijuana for 7 therapeutic use if the center is licensed as a production facility pursuant to this 8 Section. 9 (3) The license shall be limited to one geographic location as provided for in 10 rule by the Department of Agriculture and Forestry. The geographic location shall 11 be a public record subject to disclosure under the Public Records Law, R.S. 44:1 et 12 seq. The licensee shall permit inspection of the production facility by any elected 13 member of the Louisiana Legislature upon request after receipt of reasonable notice. 14 (4)(a) The Department of Agriculture and Forestry shall grant the license 15 pursuant to a contract awarded through a competitive sealed bid or a competitive 16 sealed proposal as provided for in R.S. 39:1594 and 1595. The contract for the 17 license shall be subject to the Louisiana Procurement Code and shall not be subject 18 to any exceptions to or other variances from the Louisiana Procurement Code. The 19 contract shall not be awarded under the sole source procurement provisions provided 20 for in R.S. 39:1597. 21 (b) Any contract for the license awarded pursuant to this Subsection shall not 22 exceed five years. 23 (c) Any contract, memorandum of understanding, or cooperative endeavor 24 agreement entered into pursuant to this Section shall be a public record subject to 25 disclosure under the Public Records Law, R.S. 44:1 et seq. 26 (d) Any contract, memorandum of understanding, or cooperative endeavor 27 agreement entered into for services for the cultivation or processing in any way of 28 marijuana pursuant to this Section shall be a public record subject to disclosure under 29 the Public Records Law, R.S. 44:1 et seq. 30 (e) No person licensed pursuant to this Subsection shall subcontract for 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 ENROLLED 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. 30 (vi) The amount of therapeutic marijuana distributed to each pharmacy 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 ENROLLED 1 licensed to dispense therapeutic marijuana in this state during each calendar year. 2 (b) The Department of Agriculture and Forestry shall provide the information 3 collected pursuant to this Paragraph for the previous calendar year in the form of a 4 written report to the Louisiana Legislature no later than February first of each year. 5 The department shall also make a copy of the report required by this Subparagraph 6 available to the public on the Internet. 7 (7) No company that has made a contribution to a candidate in a Louisiana 8 election governed by the provisions of the Campaign Finance Disclosure Act within 9 the five years prior to bidding for the license, or is controlled wholly or in part by a 10 person who made such a contribution within the five years prior to the company 11 bidding for the license, may be eligible for the license. 12 (8) The Department of Agriculture and Forestry shall submit a report to the 13 legislature no later than January 1, 2016, with recommendations on possible fee 14 amounts relative to the provisions of this Section. 15 K.I. The levels of THC in any marijuana produced pursuant to this Section 16 shall be reduced to the lowest acceptable therapeutic levels available through 17 scientifically accepted methods. 18 L.J. The provisions of this Section shall terminate on January 1, 2020. 19 §1047. Louisiana Department of Agriculture and Forestry; authorization to 20 obtain criminal history record information 21 A. As used in this Section, the following terms shall have the following 22 meaning: 23 (1) "Applicant" means a natural person, a corporation, limited liability 24 company, partnership, joint stock association, sole proprietorship, joint 25 venture, business association, cooperative association, professional corporation 26 or any other legal entity or organization through which business is conducted. 27 (2) "Bureau" means the Louisiana Bureau of Criminal Identification and 28 Information of the office of state police within the Department of Public Safety 29 and Corrections. 30 (3) "Criminal history record information" means information collected 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 ENROLLED 1 by state and federal criminal justice agencies on individuals consisting of 2 identifiable descriptions and notations of arrests, detentions, indictments, bills 3 of information, or any formal criminal charges, and any disposition arising 4 therefrom, including sentencing, criminal correctional supervision, and release. 5 It shall not include intelligence information gathered for investigatory purposes 6 or any identification information which does not indicate involvement of the 7 individual in the criminal justice system. 8 (4) "Department" means Louisiana Department of Agriculture and 9 Forestry. 10 (5) "FBI" means the Federal Bureau of Investigation of the United States 11 Department of Justice. 12 (6) "Licensure" means any license or permit that the department is 13 authorized to issue for the production of recommended therapeutic marijuana 14 and the facility producing therapeutic marijuana. 15 B. In addition to any other requirements established by department 16 rules, the department shall require an applicant, as a condition of eligibility for 17 licensure: 18 (1) To submit a full set of fingerprints, in a form and manner prescribed 19 by the department. 20 (2) To permit the department to request and obtain state and national 21 criminal history record information on the applicant. 22 (3) To pay the reasonable costs to be incurred by the department in 23 requesting and obtaining state and national criminal history record information 24 on the applicant. 25 C. In accordance with the provisions and procedure prescribed by this 26 Section, the department shall request and obtain state and national criminal 27 history record information from the bureau and the FBI relative to any 28 applicant for licensure whose fingerprints the department has obtained 29 pursuant to this Section for the purpose of determining the applicant's 30 suitability and eligibility for licensure. 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 ENROLLED 1 D. Upon request by the department and upon submission of an 2 applicant's fingerprints, and such other identifying information as may be 3 required, the bureau shall survey its criminal history records and identification 4 files and make a simultaneous request of the FBI for like information from 5 other jurisdictions. The bureau may charge the department a reasonable 6 processing fee for conducting and reporting on any such search. 7 E. Any and all state or national criminal history record information 8 obtained by the department from the bureau or FBI which is not already a 9 matter of public record shall be deemed nonpublic and confidential information 10 restricted to the exclusive use by the department in evaluating the applicant's 11 eligibility or disqualification for licensure. No such information or records 12 related thereto shall, except with the written consent of the applicant or by 13 order of a court of competent jurisdiction, be released or otherwise disclosed by 14 the department to any other person or agency. 15 Section 2. R.S. 40:1046 is hereby amended and reenacted to read as follows: 16 §1046. Prescription of marijuana for therapeutic use; rules and regulations; 17 Louisiana Board of Pharmacy and the adoption of rules and 18 regulations relating to the dispensing of prescribed marijuana for 19 therapeutic use; the Department of Agriculture and Forestry and the 20 licensure of a production facility 21 A.(1) Notwithstanding any other provision of this Part, a physician licensed 22 by and in good standing with the Louisiana State Board of Medical Examiners 23 to practice medicine in this state and who is domiciled in this state may prescribe, 24 in any form as permitted by the rules and regulations of the Louisiana Board of 25 Pharmacy except for inhalation, and raw or crude marijuana, tetrahydrocannabinols, 26 or a chemical derivative of tetrahydrocannabinols for therapeutic use by patients 27 clinically diagnosed as suffering from a debilitating medical condition glaucoma, 28 symptoms resulting from the administration of chemotherapy cancer treatment, and 29 spastic quadriplegia in accordance with rules and regulations promulgated by the 30 Louisiana State Board of Medical Examiners. The Louisiana State Board of Medical 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 ENROLLED 1 Examiners shall submit to the Senate and House committees on health and welfare 2 on an annual basis not less than sixty days prior to the beginning of the regular 3 session of the legislature a report as to any additional diseases or medical conditions 4 that should be added to the list of eligible diseases and conditions for prescription. 5 (2)(a) For purposes of this Subsection, "debilitating medical condition" 6 means cancer, positive status for human immunodeficiency virus, acquired 7 immune deficiency syndrome, cachexia or wasting syndrome, seizure disorders, 8 epilepsy, spasticity, Crohn's disease, muscular dystrophy, or multiple sclerosis. 9 (b) If the United States Food and Drug Administration approves the use 10 of medical marijuana in the same form provided for in this Part for any 11 debilitating medical condition specifically identified in this Paragraph, that 12 medical condition shall no longer be covered by the provisions of this Part. 13 (c) If the United States Food and Drug Administration approves the use 14 of medical marijuana in a form or derivative different than provided for in this 15 Part for any debilitating medical condition specifically identified in this 16 Paragraph, the disease state shall remain covered by the provisions of this Part. 17 The patient shall first be treated by the approved form or derivative of medical 18 marijuana through utilization of step therapy or fail first protocols. If, after use 19 of the United States Food and Drug Administration approved form or 20 derivative of medical marijuana, the physician determines that the preferred 21 treatment required under step therapy or fail first protocol has been ineffective 22 in the treatment of the patient's debilitating medical condition, he may 23 prescribe the form of medical marijuana provided for in this Part for use by the 24 patient as medically necessary. 25 (3) For purposes of this Part, "prescribe" or "prescription" means an 26 order from a physician domiciled in Louisiana and licensed and in good 27 standing with the Louisiana Board of Medical Examiners and authorized by the 28 board to prescribe medical marijuana that is patient-specific and 29 disease-specific in accordance with Paragraph (2) of this Subsection, and is 30 communicated by any means allowed by the Louisiana Board of Pharmacy to 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 ENROLLED 1 a Louisiana-licensed pharmacist in a Louisiana-permitted dispensing pharmacy 2 as described in Subsection G of this Section, and is preserved on file as required 3 by Louisiana law or federal law regarding medical marijuana. 4 (4) Physicians shall prescribe the use of medical marijuana for treatment 5 of debilitating medical conditions in accordance with rules and regulations 6 promulgated by the Louisiana State Board of Medical Examiners. 7 (5) The Louisiana State Board of Medical Examiners shall submit to the 8 Senate and House committees on health and welfare on an annual basis not less 9 than sixty days prior to the beginning of the regular session of the legislature a 10 report as to any additional diseases or medical conditions that should be added 11 to the list of eligible diseases and conditions for recommendation. 12 B. The Louisiana State Board of Medical Examiners shall promulgate rules 13 and regulations authorizing physicians licensed to practice in this state to prescribe 14 marijuana for therapeutic use by patients as described in Subsection A of this Section 15 no later than January 1, 2016. 16 C.(1) The Louisiana Board of Pharmacy shall adopt rules relating to the 17 dispensing of prescribed marijuana for therapeutic use no later than December 1, 18 2016. The Louisiana Board of Pharmacy shall seek input from groups including but 19 not limited to the following: 20 (a) The Louisiana District Attorneys Association. 21 (b) Professional law enforcement associations, organizations, and 22 commissions. 23 (2) The rules shall include but not be limited to: 24 (a) Standards, procedures, and protocols for the effective use of prescribed 25 marijuana for therapeutic use as authorized by state law and related rules and 26 regulations. 27 (b) Standards, procedures, and protocols for the dispensing and tracking of 28 prescribed therapeutic marijuana in Louisiana. 29 (c) Procedures and protocols to provide that no prescribed therapeutic 30 marijuana may be dispensed from, produced from, obtained from, sold to, or 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 ENROLLED 1 transferred to a location outside of this state. 2 (d) The establishment of standards, procedures, and protocols for determining 3 the amount of usable prescribed therapeutic marijuana that is necessary to constitute 4 an adequate supply to ensure uninterrupted availability for a period of one month, 5 including amounts for topical treatments. 6 (e) The establishment of standards, procedures, and protocols to ensure that 7 all prescribed therapeutic marijuana dispensed is consistently pharmaceutical grade. 8 (f) The establishment of standards and procedures for the revocation, 9 suspension, and nonrenewal of licenses. 10 (g) The establishment of other licensing, renewal, and operational standards 11 which are deemed necessary by the Louisiana Board of Pharmacy. 12 (h) The establishment of standards and procedures for testing prescribed 13 therapeutic marijuana samples for levels of tetrahydrocannabinol (THC) or other 14 testing parameters deemed appropriate by the Louisiana Board of Pharmacy. 15 (i) The establishment of health, safety, and security requirements for 16 dispensers of prescribed therapeutic marijuana. 17 (j) Licensure of dispensers of prescribed therapeutic marijuana. 18 (k) The establishment of financial requirements for applicants of therapeutic 19 marijuana dispensing pharmacy license under which each applicant demonstrates the 20 following: 21 (i) The financial capacity to operate a therapeutic marijuana dispensing 22 pharmacy. 23 (ii) The ability to maintain an escrow account in a financial institution 24 headquartered in Louisiana in an amount of two million dollars, if required by the 25 Louisiana Board of Pharmacy. 26 D. The Louisiana Board of Pharmacy shall submit a report to the legislature 27 no later than January 1, 2016, with recommendations on possible fee amounts 28 relative to the provisions of this Section. 29 E. All rules shall be adopted in accordance with the provisions of the 30 Administrative Procedure Act. 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 ENROLLED 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.(1) H.(1)(a) The Department of Agriculture and Forestry shall develop the 18 rules and regulations regarding the extraction, processing, and production of 19 prescribed therapeutic marijuana and the facility producing therapeutic marijuana. 20 The rules and regulations shall include but not be limited to both of the following 21 minimum standards: 22 (i) In order to mitigate the risk of bacterial contamination, food-grade 23 ethanol extraction shall be used. 24 (ii) The extraction and refining process shall produce a product that is 25 food safe and capable of producing pharmaceutical-grade products. 26 (b) The rules and regulations shall also include but not be limited to the 27 procedures for application, qualifications, eligibility, background checks, and 28 standards for suitability for a license and penalties for violations of the rules and 29 regulations. 30 (2)(a) The Department of Agriculture and Forestry shall develop an annual, 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 ENROLLED 1 nontransferable specialty license for the production of prescribed marijuana for 2 therapeutic use. and Other than the licenses granted pursuant to Subparagraph 3 (b) of this Paragraph, the Department of Agriculture and Forestry shall limit the 4 number of such licenses granted in the state to no more than one licensee. The 5 Louisiana State University Agricultural Center and the Southern University 6 Agricultural Center shall have the right of first refusal to be licensed as the 7 production facility, either separately or jointly. If neither of the centers exercise this 8 option, the license shall be awarded pursuant to the requirements provided for in 9 Paragraphs (3) through (5) of this Subsection. 10 (b) Prior to September 1, 2016, the Louisiana State University 11 Agricultural Center and the Southern University Agricultural Center shall each 12 provide written notice to the commissioner of agriculture and forestry of their 13 intent to be licensed as a production facility, either separately or jointly. 14 (3) The license shall be limited to one geographic location as provided for in 15 rule by the Department of Agriculture and Forestry. The geographic location shall 16 be a public record subject to disclosure under the Public Records Law, R.S. 44:1 et 17 seq. The licensee shall permit inspection of the production facility by any elected 18 member of the Louisiana Legislature upon request after receipt of reasonable notice. 19 (4)(a) The Department of Agriculture and Forestry shall grant the license 20 pursuant to a contract awarded through a competitive sealed bid or a competitive 21 sealed proposal as provided for in R.S. 39:1594 and 1595. The contract for the 22 license shall be subject to the Louisiana Procurement Code and shall not be subject 23 to any exceptions to or other variances from the Louisiana Procurement Code. The 24 contract shall not be awarded under the sole source procurement provisions provided 25 for in R.S. 39:1597. 26 (b) Any contract for the license awarded pursuant to this Subsection shall not 27 exceed five years. 28 (c) Any contract, memorandum of understanding, or cooperative endeavor 29 agreement entered into pursuant to this Section shall be a public record subject to 30 disclosure under the Public Records Law, R.S. 44:1 et seq. 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 ENROLLED 1 (d) Any contract, memorandum of understanding, or cooperative endeavor 2 agreement entered into for services for the cultivation or processing in any way of 3 marijuana pursuant to this Section shall be a public record subject to disclosure under 4 the Public Records Law, R.S. 44:1 et seq. 5 (e) No person licensed pursuant to this Subsection shall subcontract for 6 services for the cultivation or processing in any way of marijuana if the 7 subcontractor, or any of the service providers in the chain of subcontractors, is 8 owned wholly or in part by any state employee or member of a state employee's 9 immediate family, including but not limited to any legislator, statewide public 10 official, university or community or technical college employee, Louisiana State 11 University Agricultural Center employee, or Southern University Agricultural Center 12 employee. For the purposes of this Paragraph, "immediate family" has the same 13 meaning as provided in R.S. 42:1102. 14 (f) Any bid for the license awarded pursuant to this Subsection shall include 15 proof of the financial capability of the bidder to operate a therapeutic marijuana 16 production facility including but not limited to a net worth of not less than one 17 million dollars. 18 (5) No person licensed pursuant to this Subsection shall give or receive 19 anything of value in connection with any contract, memorandum of understanding, 20 or cooperative endeavor agreement executed pursuant to this Subsection except the 21 value that is expressed in the contract, memorandum of understanding, or 22 cooperative endeavor agreement. 23 (6)(a) The Department of Agriculture shall collect the following information 24 from each licensee: 25 (i) The amount of gross marijuana produced by the licensee during each 26 calendar year. 27 (ii) The details of all production costs including but not limited to seed, 28 fertilizer, labor, advisory services, construction, and irrigation. 29 (iii) The details of any items or services for which the licensee subcontracted 30 and the costs of each subcontractor directly or indirectly working for the contractor. 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 ENROLLED 1 (iv) The amount of therapeutic chemicals produced resulting from the 2 marijuana grown pursuant to this Section. 3 (v) The amounts paid each year to the licensee related to the licensee's 4 production of therapeutic marijuana pursuant to this Section. 5 (vi) The amount of therapeutic marijuana distributed to each pharmacy 6 licensed to dispense therapeutic marijuana in this state during each calendar year. 7 (b) The Department of Agriculture and Forestry shall provide the information 8 collected pursuant to this Paragraph for the previous calendar year in the form of a 9 written report to the Louisiana Legislature no later than February first of each year. 10 The department shall also make a copy of the report required by this Subparagraph 11 available to the public on the Internet. 12 (7) No company that has made a contribution to a candidate in a Louisiana 13 election governed by the provisions of the Campaign Finance Disclosure Act within 14 the five years prior to bidding for the license, or is controlled wholly or in part by a 15 person who made such a contribution within the five years prior to the company 16 bidding for the license, may be eligible for the license. 17 (8) The Department of Agriculture and Forestry shall submit a report to the 18 legislature no later than January 1, 2016, with recommendations on possible fee 19 amounts relative to the provisions of this Section. 20 K.I. The levels of THC in any marijuana produced pursuant to this Section 21 shall be reduced to the lowest acceptable therapeutic levels available through 22 scientifically accepted methods. 23 L.J. The provisions of this Section shall terminate on January 1, 2020. 24 Section 3. This Section and Section 1 of this Act shall become effective upon 25 signature by the governor or, if not signed by the governor, upon expiration of the time for 26 bills to become law without signature by the governor, as provided by Article III, Section 27 18 of the Constitution of Louisiana. If vetoed by the governor and subsequently approved 28 by the legislature, this Act shall become effective on the day following such approval. 29 Section 4. This Section and Section 2 of this Act shall become effective and become 30 operative if and when the United States Drug Enforcement Administration reclassifies 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 ENROLLED 1 marijuana from a Schedule I drug to a Schedule II drug under the authority of the Controlled 2 Substances Act, 21 U.S.C. §801 et seq., at which time the provisions of Section 1 of this Act 3 amending and reenacting R.S. 40:1046 shall become null and void and of no effect. PRESIDENT OF THE SENATE SPEAKER OF THE HOUSE OF REPRESENTATIVES GOVERNOR OF THE STATE OF LOUISIANA APPROVED: Page 19 of 19 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions.