HLS 19RS-702 ENGROSSED
2019 Regular Session
HOUSE BILL NO. 507
BY REPRESENTATIVE ABRAMSON
TAX: Levies a 7% tax on the gross sales of therapeutic marijuana and dedicates the avails
into the New Opportunities Waiver Fund
1 AN ACT
2To amend and reenact R.S. 40:1046(H)(8)(a), relative to the gross sales of therapeutic
3 marijuana; to authorize a tax on the gross sales of therapeutic marijuana; to dedicate
4 the avails of the tax; to provide for an effective date; and to provide for related
5 matters.
6Be it enacted by the Legislature of Louisiana:
7 Section 1. R.S. 40:1046(H)(8)(a) is amended and hereby reenacted to read as
8follows:
9 ยง1046. Prescription of marijuana for therapeutic use; rules and regulations;
10 Louisiana Board of Pharmacy and the adoption of rules and regulations
11 relating to the dispensing of prescribed marijuana for therapeutic use; the
12 Department of Agriculture and Forestry and the licensure of a production
13 facility
14 * * *
15 H.
16 * * *
17 (8)(a) The department shall perform the following:
18 (i) Establish and collect an annual license fee of one hundred thousand dollars
19 and an annual permit fee of one hundred dollars for administrative and inspection
20 costs.
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 19RS-702 ENGROSSED
HB NO. 507
1 (ii) Collect a nonrefundable application fee of ten thousand dollars.
2 (iii) Receive an amount not to exceed seven percent of the gross sales.
3 Collect a tax of seven percent of the gross sales of therapeutic marijuana. The
4 department shall transfer monthly to the state treasury for deposit into the New
5 Opportunities Waiver Fund the amount of revenues collected in accordance with this
6 Item. An amount shall be allocated to the department, pursuant to legislative
7 appropriation, for regulatory, administrative, investigative, enforcement, legal, and
8 other such expenses as may be necessary to carry out the provisions of this Chapter
9 and for activities associated with the enforcement of law and regulations governing
10 the therapeutic marijuana program.
11 * * *
12 Section 2. The provisions of this Act shall become effective on July 1, 2019.
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 507 Engrossed 2019 Regular Session Abramson
Abstract: Levies a 7% tax on the gross sales of therapeutic marijuana and dedicates the
avails of the tax into the New Opportunities Waiver Fund after amounts appropriated
by the legislature have been paid to the Dept. of Agriculture and Forestry.
Present law establishes an annual license fee of $100,000 for a license to produce marijuana
for therapeutic use, an annual permit fee of $100 for the administrative and inspection costs
associated with producing marijuana for therapeutic use, and a nonrefundable application
fee of $10,000 to apply for the license to produce marijuana for therapeutic use. Proposed
law retains present law.
Present law mandates that the Dept. of Agriculture and Forestry receive an amount not to
exceed 7% of the gross sales of therapeutic marijuana.
Proposed law changes present law to levy a tax of 7% of the gross sales of therapeutic
marijuana and dedicates the remainder of the avails of the tax into the New Opportunities
Waiver Fund after an amount appropriated by the legislature has been paid to the Dept. of
Agriculture and Forestry for administrative costs.
Eff. July 1, 2019.
(Amends R.S. 40:1046(H)(8)(a))
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 19RS-702 ENGROSSED
HB NO. 507
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Ways and Means to the
original bill:
1. Clarify that the legislature may appropriate an amount from the 7% tax to the
Dept. of Agriculture and Forestry for administrative costs of the therapeutic
marijuana program. The remainder of the avails of the tax on therapeutic
marijuana shall be deposited into the New Opportunities Waiver Fund.
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.