HLS 19RS-702 REENGROSSED
2019 Regular Session
HOUSE BILL NO. 507
BY REPRESENTATIVES ABRAMSON, BILLIOT, BOUIE, TERRY BROWN,
CARPENTER, GARY CARTER, COX, DUPLESSIS, GLOVER, JIMMY HARRIS,
JACKSON, JAMES, JEFFERSON, JENKINS, JORDAN, LARVADAIN, LYONS,
MARCELLE, NORTON, PIERRE, AND STAGNI
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. 28:826(B)(1) and (C)(1) and R.S. 40:1046(H)(8)(a) and to enact
3 R.S. 47:301(10)(ii), 302(BB)(110), 321(P)(111), 321.1(I)(111), and 331(V)(111),
4 relative to the gross sales of therapeutic marijuana; to authorize a fee on the gross
5 sales of therapeutic marijuana; to dedicate the proceeds of the fee; to provide for use
6 of the proceeds; to exclude sales of marijuana recommended for therapeutic use from
7 state and local sales and use tax; to provide for the effectiveness of certain sales and
8 use tax exclusions; to provide for an effective date; and to provide for related
9 matters.
10Be it enacted by the Legislature of Louisiana:
11 Section 1. R.S. 28:826(B)(1) and (C)(1) are hereby amended and reenacted to read
12as follows:
13 §826. Community and Family Support System Fund
14 * * *
15 B.(1) Notwithstanding any other provision of law to the contrary, after
16 compliance with the requirements of Article VII, Section 9(B) of the Constitution of
17 Louisiana relative to the Bond Security and Redemption Fund, and after a sufficient
18 amount is allocated from that fund to pay all of the obligations secured by the full
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1 faith and credit of the state which become due and payable within any fiscal year, the
2 treasurer shall pay an amount equal to the amount collected by the state attributable
3 to the sale or lease of all or part of any movable and immovable property previously
4 operated by the office for citizens with developmental disabilities within the
5 Louisiana Department of Health and the proceeds of the fee assessed pursuant to the
6 provisions of R.S. 40:1046(H)(8)(a).
7 * * *
8 C.(1) Subject to annual appropriation by the legislature, the monies in the
9 Community and Family Support System Fund shall be used solely to improve the
10 capacity of the state to meet the varying and complex needs of individuals with
11 developmental disabilities, with emphasis on increasing the number of recipients of
12 waiver services and no less than fifty percent of the proceeds of the fee assessed
13 pursuant to the provisions of R.S. 40:1046(H)(8)(a) deposited into the fund shall be
14 used to provide funding for the Early Steps intervention program for infants and
15 toddlers with disabilities and their families as established in R.S. 28:461 et seq.
16 * * *
17 Section 2. R.S.40:1046(H)(8)(a) is hereby amended and reenacted to read as follows:
18 §1046. Recommendation of marijuana for therapeutic use; rules and regulations;
19 Louisiana Board of Pharmacy and the adoption of rules and regulations
20 relating to the dispensing of recommended marijuana for therapeutic use; the
21 Department of Agriculture and Forestry and the licensure of a production
22 facility
23 * * *
24 H.
25 * * *
26 (8)(a) The department shall perform the following:
27 (i) Establish and collect an annual license fee of one hundred thousand dollars
28 and an annual permit fee of one hundred dollars for administrative and inspection
29 costs.
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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 Assess a fee of seven percent of the gross sales of therapeutic marijuana. The
4 department shall transfer monthly to the state treasury for deposit into the
5 Community and Family Support System Fund, as established in R.S. 28:826, the
6 amount of revenues collected in accordance with this Item. An amount shall be
7 allocated to the department, pursuant to legislative appropriation, for regulatory,
8 administrative, investigative, enforcement, legal, and other such expenses as may be
9 necessary to carry out the provisions of this Chapter and for activities associated with
10 the enforcement of law and regulations governing the therapeutic marijuana
11 program.
12 * * *
13 Section 3. R.S. 47:301(10)(ii), 302(BB)(110), 321(P)(111), 321.1(I)(111), and
14331(V)(111) are hereby enacted to read as follows:
15 §301. Definitions
16 As used in this Chapter the following words, terms, and phrases have the
17 meanings ascribed to them in this Section, unless the context clearly indicates a
18 different meaning:
19 * * *
20 (10)
21 * * *
22 (ii) For purposes of sales and use tax imposed by the state or any political
23 subdivision of the state, the term "retail sale" or "sale at retail" shall not include
24 marijuana recommended for therapeutic use by patients clinically diagnosed as
25 suffering from a debilitating medical condition as defined in R.S. 40:1046.
26 * * *
27 §302. Imposition of tax
28 * * *
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1 BB. Notwithstanding any other provision of law to the contrary, including
2 but not limited to any contrary provisions of this Chapter, beginning July 1, 2018,
3 through June 30, 2025, there shall be no exemptions and no exclusions to the tax
4 levied pursuant to the provisions of this Section, except for the retail sale, use,
5 consumption, distribution, or storage for use or consumption of the following:
6 * * *
7 (110) Sales of marijuana recommended for therapeutic use as provided in
8 R.S. 47:301(10)(ii).
9 * * *
10 §321. Imposition of tax
11 * * *
12 P. Notwithstanding any other provision of law to the contrary, including but
13 not limited to any contrary provisions of this Chapter, beginning July 1, 2018,
14 through June 30, 2025, there shall be no exemptions and no exclusions to the tax
15 levied pursuant to the provisions of this Section, except for the retail sale, use,
16 consumption, distribution, or storage for use or consumption of the following:
17 * * *
18 (111) Sales of marijuana recommended for therapeutic use as provided in
19 R.S. 47:301(10)(ii).
20 * * *
21 §321.1. Imposition of tax
22 * * *
23 I. Notwithstanding any other provision of law to the contrary, including but
24 not limited to any contrary provisions of this Chapter, beginning July 1, 2018,
25 through June 30, 2025, there shall be no exemptions and no exclusions to the tax
26 levied pursuant to the provisions of this Section, except for the retail sale, use,
27 consumption, distribution, or storage for use or consumption of the following:
28 * * *
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1 (111) Sales of marijuana recommended for therapeutic use as provided in
2 R.S. 47:301(10)(ii).
3 * * *
4 §331. Imposition of tax
5 * * *
6 V. Notwithstanding any other provision of law to the contrary, including but
7 not limited to any contrary provisions of this Chapter, beginning July 1, 2018,
8 through June 30, 2025, there shall be no exemptions and no exclusions to the tax
9 levied pursuant to the provisions of this Section, except for the retail sale, use,
10 consumption, distribution, or storage for use or consumption of the following:
11 * * *
12 (111) Sales of marijuana recommended for therapeutic use as provided in
13 R.S. 47:301(10)(ii).
14 * * *
15 Section 4. 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 Reengrossed 2019 Regular Session Abramson
Abstract: Assesses a 7% fee on the gross sales of therapeutic marijuana and dedicates the
proceeds of the fee to provide funding for the EarlySteps intervention program for
infants and toddlers with disabilities. Further establishes a state and local sales and
use tax exclusion for sales of marijuana recommended for therapeutic use from state
and local sales and use tax.
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 imposes state sales and use taxes on the sale, use, lease, or rental of tangible
personal property pursuant to the following levies in the following amounts:
R.S. 47:302 - 2%
R.S. 47:321 - 1%
R.S. 47:321.1 - .45%
R.S. 47:331 - .97%
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R.S. 47:51:1286 - .03%
Proposed law establishes an exclusion from state and local sales and use taxes for marijuana
recommended for therapeutic use by patients clinically diagnosed as suffering from certain
debilitating medical conditions.
Present law excludes and exempts a wide variety of tangible personal property from the sales
and use tax; however, present law suspends numerous exclusions and exemptions from the
four levies of state sales and use tax (R.S. 47:302, 321, 321.1, and 331) through June 30,
2025.
Proposed law changes present law by adding sales of marijuana recommended for
therapeutic use to the list of exclusions and exemptions that are effective through June 30,
2025.
Present law mandates that the Dept. of Agriculture and Forestry, hereinafter "department",
receive an amount not to exceed 7% of the gross sales of therapeutic marijuana.
Proposed law changes present law by requiring the department to assess a fee of 7% on the
gross sales of therapeutic marijuana and authorizes the legislature to appropriate an amount
to the department for administrative costs.
Proposed law requires the remainder of the proceeds of the fee to be deposited into the
Community and Family Support System Fund as established in present law to be used to
provide funding for the EarlySteps intervention program for infants and toddlers with
disabilities and their families.
Present law establishes the Community and Family Support System Fund, hereinafter "the
fund" as a special fund in the state treasury. After compliance with the requirements of
present constitution, relative to the Bond Security and Redemption Fund, the treasurer shall
pay an amount equal to the amount collected by the state attributable to the sale or lease of
all or part of any movable and immovable property previously operated by the office for
citizens with developmental disabilities within the La. Dept. of Health. Monies appropriated
from the fund shall be used solely to improve the capacity of the state to meet the varying
and complex needs of individuals with developmental disabilities, with emphasis on
increasing the number of recipients of waiver services.
Proposed law retains present law but requires the proceeds of the fee assessed on therapeutic
marijuana as provided for in proposed law to be deposited into the fund and for no less than
50% of the proceeds of the fee to be used to provide funding for the EarlySteps intervention
program for infants and toddlers with disabilities and their families.
Effective July 1, 2019.
(Amends R.S. 28:826(B)(1) and (C)(1) and R.S. 40:1046(H)(8)(a); Adds R.S. 47:301(10)(ii),
302(BB)(110), 321(P)(111), 321.1(I)(111), and 331(V)(111))
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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HB NO. 507
The House Floor Amendments to the engrossed bill:
1. Change proposed law from the collection of a tax to the assessment of a fee on
the gross sales of therapeutic marijuana.
2. Change the dedication of the proceeds of the fee from the New Opportunities
Waiver Fund to the Community and Family Support System Fund, hereinafter
"fund".
3. Require that no less than 50% of the proceeds of the fee deposited into the fund
be used to provide funding for the EarlySteps intervention program for infants
and toddlers with disabilities and their families.
4. Establish a state and local sales tax exclusion for marijuana recommended for
therapeutic use by patients clinically diagnosed as suffering from certain
debilitating medical conditions.
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