ENROLLED
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 AND SENATOR MILLS
1 AN ACT
2 To amend and reenact R.S. 28:826(B)(1) and (C)(1), R.S. 40:1046(H)(8)(a), R.S.
3 40:1046(H)(8)(a) as enacted by Section 1 of Act No. 567 and Section 2 of Act No.
4 96, both of the 2016 Regular Session of the Legislature of Louisiana, and R.S.
5 47:287.73(C)(4) and to enact R.S. 47:287.73(C)(1), 301(10)(ii), 302(BB)(110),
6 321(P)(111), 321.1(I)(111), and 331(V)(111), relative to the gross sales of
7 therapeutic marijuana; to authorize a fee on the gross sales of therapeutic marijuana;
8 to dedicate the proceeds of the fee; to provide for use of the proceeds; to allow a
9 corporate income tax deduction for certain ordinary business expenses of state
10 licensees; to exclude sales of marijuana recommended for therapeutic use from state
11 and local sales and use tax; to provide for the effectiveness of certain sales and use
12 tax exclusions; to provide for an effective date; and to provide for related matters.
13 Be it enacted by the Legislature of Louisiana:
14 Section 1. R.S. 28:826(B)(1) and (C)(1) are hereby amended and reenacted to read
15 as follows:
16 §826. Community and Family Support System Fund
17 * * *
18 B.(1) Notwithstanding any other provision of law to the contrary, after
19 compliance with the requirements of Article VII, Section 9(B) of the Constitution of
20 Louisiana relative to the Bond Security and Redemption Fund, and after a sufficient
21 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.
30 (ii) Collect a nonrefundable application fee of ten thousand dollars.
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1 (iii) Receive an amount not to exceed seven percent of the gross sales.
2 Assess a fee of seven percent of the gross sales of therapeutic marijuana that shall
3 be collected by the Department of Revenue and shall be subject to the provisions of
4 Chapter 18 of Subtitle II of Title 47 of the Louisiana Revised Statutes of 1950 as
5 amended. Notwithstanding the provisions of Subparagraph (b) of this Paragraph, the
6 Department of Revenue shall transfer monthly to the state treasury for deposit into
7 the Community and Family Support System Fund, as established in R.S. 28:826, the
8 amount of revenues collected in accordance with this Item. An amount shall be
9 allocated to the department, pursuant to legislative appropriation, for regulatory,
10 administrative, investigative, enforcement, legal, and other such expenses as may be
11 necessary to carry out the provisions of this Chapter and for activities associated with
12 the enforcement of law and regulations governing the therapeutic marijuana
13 program.
14 * * *
15 Section 3. R.S. 40:1046(H)(8)(a) as enacted by Section 1 of Act No. 567 and Section
16 2 of Act No. 96, both of the 2016 Regular Session of the Legislature of Louisiana, is hereby
17 amended and reenacted to read as follows:
18 §1046. Prescription of marijuana for therapeutic use; rules and regulations;
19 Louisiana Board of Pharmacy and the adoption of rules and
20 regulations relating to the dispensing of prescribed marijuana for
21 therapeutic use; the Department of Agriculture and Forestry and the
22 licensure of a production 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
28 thousand dollars and an annual permit fee of one hundred dollars for
29 administrative and inspection costs.
30 (ii) Collect a nonrefundable application fee of ten thousand dollars.
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1 (iii) Receive an amount not to exceed seven percent of the gross sales.
2 Assess a fee of seven percent of the gross sales of therapeutic marijuana that
3 shall be collected by the Department of Revenue and shall be subject to the
4 provisions of Chapter 18 of Subtitle II of Title 47 of the Louisiana Revised
5 Statutes of 1950 as amended. Notwithstanding the provisions of
6 Subparagraph (b) of this Paragraph, the department shall transfer monthly to
7 the state treasury for deposit into the Community and Family Support System
8 Fund, as established in R.S. 28:826, the amount of revenues collected in
9 accordance with this Item. An amount shall be allocated to the department,
10 pursuant to legislative appropriation, for regulatory, administrative,
11 investigative, enforcement, legal, and other such expenses as may be
12 necessary to carry out the provisions of this Chapter and for activities
13 associated with the enforcement of law and regulations governing the
14 therapeutic marijuana program.
15 * * *
16 Section 4. R.S. 47:287.73(C)(4) is hereby amended and reenacted and R.S.
17 47:287.73(C)(1), 301(10)(ii), 302(BB)(110), 321(P)(111), 321.1(I)(111), and 331(V)(111)
18 are hereby enacted to read as follows:
19 §287.73. Modifications to deductions from gross income allowed by federal law
20 * * *
21 C. Additions. The following items are declared allowable as deductions in the
22 computation of net income and shall be added to the deductions allowed under
23 federal law to the extent not already included therein:
24 (1) Expenses that would otherwise be deductible under federal law but for the
25 provisions of 26 U.S.C. 280E, for a licensee of this state pursuant to Part X-E,
26 Chapter 4 of Title 40 of the Louisiana Revised Statutes of 1950, as amended, related
27 to the production or dispensing of marijuana recommended for therapeutic use by
28 patients clinically diagnosed as suffering from a debilitating medical condition as
29 defined in R.S. 40:1046.
30 * * *
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1 (4) Expenses disallowed by I.R.C. Section 280(C) 26 U.S.C. 280C. Expenses
2 which that would otherwise be deductible under federal law, but for the disallowance
3 provisions of I.R.C. Section 280(C) 26 U.S.C. 280C, relative to certain expenses for
4 which credits are allowable.
5 * * *
6 §301. Definitions
7 As used in this Chapter the following words, terms, and phrases have the
8 meanings ascribed to them in this Section, unless the context clearly indicates a
9 different meaning:
10 * * *
11 (10)
12 * * *
13 (ii) For purposes of sales and use tax imposed by the state or any political
14 subdivision of the state, the term "retail sale" or "sale at retail" shall not include
15 marijuana recommended for therapeutic use by patients clinically diagnosed as
16 suffering from a debilitating medical condition as defined in R.S. 40:1046.
17 * * *
18 §302. Imposition of tax
19 * * *
20 BB. Notwithstanding any other provision of law to the contrary, including
21 but not limited to any contrary provisions of this Chapter, beginning July 1, 2018,
22 through June 30, 2025, there shall be no exemptions and no exclusions to the tax
23 levied pursuant to the provisions of this Section, except for the retail sale, use,
24 consumption, distribution, or storage for use or consumption of the following:
25 * * *
26 (110) Sales of marijuana recommended for therapeutic use as provided in
27 R.S. 47:301(10)(ii).
28 * * *
29 §321. Imposition of tax
30 * * *
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1 P. Notwithstanding any other provision of law to the contrary, including but
2 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 (111) Sales of marijuana recommended for therapeutic use as provided in
8 R.S. 47:301(10)(ii).
9 * * *
10 §321.1. Imposition of tax
11 * * *
12 I. 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 §331. Imposition of tax
22 * * *
23 V. 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 Section 5. The provisions of this Act shall become effective on July 1, 2019.
SPEAKER OF THE HOUSE OF REPRESENTATIVES
PRESIDENT OF THE SENATE
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED:
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