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))
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.