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%
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.
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.