HLS 21RS-474 ORIGINAL
2021 Regular Session
HOUSE BILL NO. 524
BY REPRESENTATIVE NELSON
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
DRUGS: Provides for decriminalization of marijuana and regulation of marijuana for
recreational use
1 AN ACT
2To amend and reenact R.S. 40:966(B)(2)(introductory paragraph) and (D)(1), to enact
3 Division 5 of Subpart B of Part V of Chapter 1 of Title 14 of the Louisiana Revised
4 Statutes of 1950, to be comprised of R.S. 14:93.21 through 93.25, Chapter 9 of Title
5 26 of the Louisiana Revised Statutes of 1950, to be comprised of R.S. 26:941 though
6 948, R.S. 40:989.4, Part XIII of Chapter 4 of Title 40 of the Louisiana Revised
7 Statutes of 1950, to be comprised of R.S. 40:1058.1 through 1058.10, and to repeal
8 R.S. 40:964(Schedule I)(C)(19) and 966(C)(2) and (F), relative to the legal status of
9 marijuana; to provide for a proposition on legalization of marijuana to appear on the
10 ballot in every parish at a statewide election; to repeal, contingent upon the outcome
11 of the election on the proposition, laws which criminalize the possession of
12 marijuana; to provide for a legal and regulatory framework relative to production of
13 cannabis products and sale of such products to consumers over a certain age; to
14 create and provide for crimes relating to unlawful sale, purchase, and possession of
15 cannabis products; to authorize the Louisiana Department of Health to regulate the
16 cultivation, processing, and manufacturing of cannabis products; to authorize the
17 office of alcohol and tobacco control to regulate the retail sale of cannabis products;
18 to require permitting by the state of cannabis retailers; to require licensure by the
19 state of cannabis commercial growers, cannabis processors, and cannabis contract
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1 carriers; to create and provide requirements associated with permits to be issued by
2 the state to allow cultivation and possession of cannabis plants by individuals for
3 personal use; to require promulgation of administrative rules; to provide for
4 effectiveness; and to provide for related matters.
5Be it enacted by the Legislature of Louisiana:
6 Section 1. Division 5 of Subpart B of Part V of Chapter 1 of Title 14 of the
7Louisiana Revised Statutes of 1950, comprised of R.S. 14:93.21 through 93.25, is hereby
8enacted to read as follows:
9 5. UNLAWFUL SALE, PURCHASE, AND POSSESSION
10 OF CANNABIS PRODUCTS
11 §93.21. Definitions
12 For purposes of R.S. 14:93.21 through 93.25, the following definitions
13 apply:
14 (1) "Cannabis product" has the meaning ascribed in R.S. 26:941.
15 (2) "Public possession" means the possession of any cannabis product for
16 any reason, including consumption, on any street, highway, or waterway or in any
17 public place or any place open to the public, including a club which is de facto open
18 to the public. "Public possession" does not include the following:
19 (a) The possession or consumption of any cannabis product:
20 (i) For an established religious purpose.
21 (ii) When a person under twenty-one years of age is accompanied by a
22 parent, spouse, or legal guardian twenty-one years of age or older.
23 (iii) In a private residence, which shall include a residential dwelling and up
24 to twenty contiguous acres, on which the dwelling is located, owned by the same
25 person who owns the dwelling.
26 (b) Possession of medical marijuana which has been recommended to a
27 patient and dispensed in accordance with R.S. 40:1046.
28 (3) "Purchase" means acquisition by the payment of money or other
29 consideration.
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1 §93.22. Unlawful sale of cannabis to persons under twenty-one
2 A. Unlawful sale of cannabis to persons under twenty-one is the selling or
3 otherwise delivering for value of any cannabis product to any person under
4 twenty-one years of age. Lack of knowledge of the person's age shall not be a
5 defense.
6 B. Whoever violates the provisions of this Section shall be fined not less
7 than five hundred dollars nor more than one thousand dollars or imprisoned for not
8 less than thirty days nor more than six months, or both.
9 §93.23. Purchase and public possession of cannabis products; exceptions; penalties
10 A. It is unlawful for any person under twenty-one years of age to purchase
11 or have public possession of any cannabis product.
12 B.(1) Whoever violates the provisions of this Section shall be fined not more
13 than one hundred dollars.
14 (2) Any person apprehended while violating the provisions of this Section
15 shall be issued a citation by the apprehending law enforcement officer, which shall
16 be paid in the same manner as provided for the offenders of local traffic violations.
17 A citation issued by a law enforcement officer for such violation shall not be
18 included on the person's criminal history record.
19 §93.24. Unlawful purchase of cannabis products by persons on behalf of persons
20 under twenty-one
21 A. It is unlawful for any person, other than a parent, spouse, or legal
22 guardian, as specified in R.S. 14:93.21(2)(a)(ii), to purchase on behalf of a person
23 under twenty-one years of age any cannabis product.
24 B. Whoever violates the provisions of this Section shall be fined not more
25 than five hundred dollars or imprisoned for not more than thirty days, or both.
26 §93.25. Responsibilities of cannabis retailers not relieved
27 Nothing in R.S. 14:93.21 through 93.24 shall be construed as relieving any
28 licensed cannabis retailer of any responsibilities imposed under the provisions of
29 Chapter 9 of Title 26 of the Louisiana Revised Statutes of 1950.
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1 Section 2. Chapter 9 of Title 26 of the Louisiana Revised Statutes of 1950,
2comprised of R.S. 26:941 though 948, is hereby enacted to read as follows:
3 CHAPTER 9. CANNABIS AND CANNABIS PRODUCTS
4 §941. Definitions
5 (1) "Cannabis" means all parts of plants of the genus Cannabis, whether
6 growing or not, the seeds thereof, the resin extracted from any part of such plant, and
7 every compound, manufacture, salt, derivative, mixture, or preparation of such plant,
8 its seeds, or resin; but shall not include the mature stalks of such plant, fiber
9 produced from such stalks, oil or cake made from the seeds of such plant, any other
10 compound, manufacture, salt, derivative, mixture, or preparation of such mature
11 stalks (except the resin extracted therefrom), fiber, oil, or cake or the sterilized seed
12 of such plant which is incapable of germination.
13 (2) "Cannabis-infused product" means any product that contains cannabis or
14 cannabis extracts, is intended for human use, and is derived from cannabis as defined
15 in this Section. The term "cannabis-infused product" shall not include either usable
16 cannabis or cannabis concentrates.
17 (3) "Cannabis product" means any usable cannabis and cannabis-infused
18 product as defined in this Section.
19 (4) "Cannabis retailer" means any person, other than a wholesaler, who sells,
20 offers for sale, exposes for sale, or has in his possession for sale or distribution any
21 cannabis in any quantity.
22 (5) "Commissioner" means the commissioner of alcohol and tobacco control
23 who shall be the assistant secretary of the office of alcohol and tobacco control in the
24 Department of Revenue.
25 (6) "Usable cannabis" means the dried leaves and flowers of the cannabis
26 plant, and any mixture or preparation thereof, but shall not include the seeds, stalks,
27 and roots of the plant.
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1 §942. Cannabis retailer permit
2 A. The commissioner shall develop, as authorized by this Chapter, a
3 cannabis retailer permit and shall adopt rules and regulations that specify the
4 identifying information that is required to appear on the face of each of permit. Prior
5 to selling, offering for sale, exposing for sale, or possessing for sale or distribution
6 cannabis in any quantity, a person shall obtain a permit in accordance with the
7 provisions of this Section.
8 B.(1) The commissioner shall issue permits that are valid for a period of two
9 years unless suspended or revoked pursuant to R.S. 26:948.
10 (2) Applicants shall contact the commissioner regarding the renewal of all
11 permits prior to the end of the term of the permit in accordance with the provisions
12 of this Chapter.
13 C. The fee for each retailer permit shall be established by rules promulgated
14 pursuant to the provisions of the Administrative Procedure Act, but shall not exceed
15 the amount authorized for the permit in Chapter 20 of Subtitle II of Title 47 of the
16 Louisiana Revised Statutes of 1950.
17 §943. General requirements and qualifications for permits; premises
18 A. An applicant for a retailer permit shall meet the following qualifications:
19 (1) Be twenty-one years of age or older.
20 (2) Provide proof of valid lease or ownership of premises in which the
21 business will be located.
22 (3) Shall not be convicted of any offense involving a narcotic listed in
23 Schedule I of the Uniform Controlled Dangerous Substances Law, provided the
24 offense was not marijuana-related.
25 B. No retail location shall be located in a "drug free zone" as defined in R.S.
26 17:405(A).
27 C. Retail locations shall contain a restricted area where cannabis and
28 cannabis products are stored and sold. All of the following requirements shall apply
29 with respect to such restricted areas:
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1 (1) The restricted areas shall be supervised by a retailer employee at all times
2 when customers are present to ensure that only persons who are twenty-one years of
3 age and older are permitted to enter.
4 (2) Retailer employees shall make reasonable efforts to limit the number of
5 customers in relation to the number of employees present in the restricted area at any
6 time.
7 D. The commissioner may promulgate rules in accordance with the
8 Administrative Procedure Act to establish additional requirements relative to
9 cannabis retailers.
10 §944. Issuance of permits to marijuana pharmacies
11 Notwithstanding the provisions of R.S. 26:943, the commissioner shall issue
12 a cannabis retailer permit to each entity that holds a marijuana pharmacy license
13 issued pursuant to R.S. 40:1046 without necessity of an application for the permit.
14 The commissioner shall issue the permit to the entity free of charge.
15 §945. Cannabis retail establishments; age requirements for entry
16 No person under twenty-one years of age shall enter the premises of, or be
17 employed in, a cannabis retail establishment.
18 §946. Cannabis retailer restrictions
19 Cannabis retailers shall be prohibited from all of the following activities:
20 (1) The sale of more than one ounce of cannabis or cannabis products to any
21 individual per calendar day.
22 (2) The sale of cannabis or cannabis products over the internet. All sales of
23 cannabis and cannabis products shall take place within a cannabis retail location.
24 (3) The sale or giving away of any consumable that is not cannabis or
25 cannabis product, including but not limited to cigarettes or tobacco products,
26 alcoholic beverages, food products, and non-alcohol beverages.
27 (4) Advertising in violation of R.S. 26:947.
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1 §947. Advertisement by cannabis retailers; limitations; certain advertising
2 prohibited
3 A.(1) No cannabis retailer shall advertise through any means other than a
4 single internet website and signage at its premises that conforms with the standards
5 provided in Subsection B of this Section.
6 (2) Except as allowed by Paragraph (1) of this Subsection, each cannabis
7 retailer is specifically prohibited from advertising through public media including,
8 without limitation, newspapers, billboards, television, radio, social media, and
9 internet advertising on any website other than the single site allowed by Paragraph
10 (1) of this Subsection.
11 B. A cannabis retailer may attach a maximum of two separate signs to the
12 exterior of its premises which identify the business by its business or trade name.
13 No such sign shall exceed one thousand six hundred square inches in size.
14 §948. Suspension and revocation of retailer permits
15 A. No person holding a permit issued in accordance with the provisions of
16 this Chapter and no agent, associate, employee, representative, or servant agent of
17 any person, shall do or permit any of the following acts to be done on or about the
18 licensed premises:
19 (1)(a) Sell or serve cannabis or cannabis products to any person under
20 twenty-one years of age. To determine the age of the consumer, the retailer shall
21 obtain any one of the following from the consumer:
22 (i) A valid, current Louisiana driver's license which contains a photograph
23 of the person presenting the driver's license.
24 (ii) A valid, current driver's license of another state which contains a
25 photograph of the person and the date of birth of the person submitting the driver's
26 license.
27 (iii) A valid, current special identification card issued by the state of
28 Louisiana pursuant to R.S. 40:1321 containing a photograph of the person submitting
29 the identification card.
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1 (iv) A valid, current passport or visa issued by the federal government, or
2 another country or nation, that contains a permanently attached photograph of the
3 person and the date of birth of the person submitting the passport or visa.
4 (v) A valid, current military or federal identification card issued by the
5 federal government containing a photograph of the person and the date of birth of the
6 person submitting the identification card.
7 (vi) A valid, current special identification card of another state which
8 contains a photograph of the person and the date of birth of the person submitting the
9 identification card.
10 (b) Each form of identification provided for in Subparagraph (a) of this
11 Paragraph shall, on its face, establish the age of the person as twenty-one years of
12 age or older and there must be no reason to doubt the authenticity or correctness of
13 the identification. No form of identification provided for in Subparagraph (a) of this
14 Paragraph shall be accepted as proof of age if it is expired, defaced, mutilated, or
15 altered. If the state identification card or lawful identification submitted is a
16 duplicate, the person shall submit additional identification which contains the name,
17 date of birth, and photograph of the person. A duplicate driver's license shall be
18 considered lawful identification for the purposes of this Paragraph, and a person shall
19 not be required to submit additional information containing the name, date of birth,
20 and picture of the person. In addition, an educational institution identification card,
21 check cashing identification card, or employee identification card shall not be
22 considered as lawful identification for the purposes of this Paragraph.
23 (2) Intentionally entice, aid, or permit any person under the age of twenty-
24 one to visit or loiter in or about any place where cannabis or cannabis products are
25 the principal commodities sold, handled, or given away.
26 (3) Permit any person under twenty-one years of age to work in any capacity
27 on the premises.
28 (4) Permit any prostitution activities on the premises.
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1 (5) Permit the consumption of cannabis or cannabis products on the
2 premises.
3 (6) Intentionally conduct illegal gambling, as defined by law, on the
4 premises described in the application for the permit.
5 (7) Fail to keep the premises clean and sanitary.
6 (8) Illegally sell, offer for sale, possess, or permit the consumption on or
7 about the licensed premises of any kind or type of controlled dangerous substances
8 or other illegal substances.
9 (9) Permit any disturbance of the peace or obscenity, or any lewd, immoral,
10 or improper entertainment, conduct, or practices on the licensed premises.
11 B. A violation of the provisions of this Section by a retailer's agent,
12 associate, employee, representative, or servant shall be considered an act of the
13 retailer for purposes of suspension or revocation of a permit.
14 C. A person who commits any violation of the provisions of this Section, or
15 any rule or regulation of the commissioner, for which no other penalty is provided
16 in this Section shall be imprisoned for not less than thirty days nor more than six
17 months. Such violation shall also be sufficient cause for the suspension or
18 revocation of a permit.
19 D. Notwithstanding the issuance of a permit by way of renewal, the
20 commissioner may revoke or suspend such permit, as prescribed by this Chapter, for
21 violations of this Section occurring during the permit period immediately preceding
22 the issuance of such permit.
23 Section 3. R.S. 40:989.4 and Part XIII of Chapter 4 of Title 40 of the Louisiana
24Revised Statutes of 1950, comprised of R.S. 40:1058.1 through 1058.10, are hereby enacted
25to read as follows:
26 §989.4. Legalization of marijuana; election; ballot language
27 A.(1) At the statewide election occurring on November 8, 2022, a
28 proposition shall appear on the ballot in every parish to determine whether the
29 possession, distribution, or dispensing of marijuana, tetrahydrocannabinols, or
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1 chemical derivatives thereof shall be legal for persons twenty-one years of age or
2 older.
3 (2) The ballot for the election shall state as follows:
4 "PROPOSITION ON LEGALIZATION OF MARIJUANA
5 Shall persons twenty-one years of age or older be permitted to possess,
6 purchase, sell, and produce marijuana, tetrahydrocannabinols, or chemical
7 derivatives thereof which are regulated by the State of Louisiana?"
8 B.(1) If a majority of the qualified electors of the state voting on the
9 proposition approve the proposition, then the possession, distribution, or dispensing
10 of marijuana, tetrahydrocannabinols, or chemical derivatives thereof by persons
11 twenty-one years of age or older shall no longer be a criminal offense.
12 (2) If a majority of the electors in any parish voting on the proposition do not
13 approve the proposition, then neither the secretary nor the commissioner of alcohol
14 and tobacco control shall issue any license for production, retail sale, processing, or
15 personal cultivation of any marijuana or cannabis product in that parish.
16 C. The secretary of state shall prepare the ballot for the election.
17 D. Except as otherwise provided, the election required pursuant to this
18 Section shall be conducted in accordance with the Louisiana Election Code.
19 E. Notwithstanding Chapter 8-A of the Louisiana Election Code, the costs
20 of the election required by the provisions of this Section shall be borne by the state.
21 * * *
22 PART XIII. CANNABIS
23 §1058.1. Purpose
24 The legislature hereby authorizes the Louisiana Department of Health to
25 exercise regulatory authority over the cultivation, processing, and manufacturing of
26 cannabis and cannabis products in this state in accordance with the provisions of this
27 Part.
28 §1058.2. Definitions
29 As used in this Part, the following terms shall have the following meanings:
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1 (1) "Applicant" means a natural person, a corporation, limited liability
2 company, partnership, joint stock association, sole proprietorship, joint venture,
3 business association, cooperative association, professional corporation, or any other
4 legal entity or organization through which business is conducted who has applied to
5 the Louisiana Department of Health for a license to produce cannabis and cannabis
6 products.
7 (2) "Bureau" means the Louisiana Bureau of Criminal Identification and
8 Information of the office of state police within the Department of Public Safety and
9 Corrections.
10 (3) "Cannabis" means all parts of plants of the genus Cannabis, whether
11 growing or not, the seeds thereof, the resin extracted from any part of such plant, and
12 every compound, manufacture, salt, derivative, mixture, or preparation of such plant,
13 its seeds, or resin; but shall not include the mature stalks of such plant, fiber
14 produced from such stalks, oil or cake made from the seeds of such plant, any other
15 compound, manufacture, salt, derivative, mixture, or preparation of such mature
16 stalks (except the resin extracted therefrom), fiber, oil, or cake or the sterilized seed
17 of such plant which is incapable of germination.
18 (4) "Cannabis-infused product" means any product that contains cannabis or
19 cannabis extracts, is intended for human use, and is derived from cannabis as defined
20 in this Section. The term "cannabis-infused product" shall not include either usable
21 cannabis or cannabis concentrates.
22 (5) "Cannabis product" means any usable cannabis and cannabis-infused
23 product as defined in this Section.
24 (6) "Criminal history record information" means information collected by
25 state and federal criminal justice agencies on individuals consisting of identifiable
26 descriptions and notations of arrests, detentions, indictments, bills of information,
27 or any formal criminal charges, and any disposition arising therefrom, including
28 sentencing, criminal correctional supervision, and release. It shall not include
29 intelligence information gathered for investigatory purposes or any identification
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1 information which does not indicate involvement of the individual in the criminal
2 justice system.
3 (7) "Cultivate" or "cultivating" means planting, growing, and harvesting
4 cannabis.
5 (8) "Department" means the Louisiana Department of Health.
6 (9) "FBI" means the Federal Bureau of Investigation of the United States
7 Department of Justice.
8 (10) "Housing unit" means a house, apartment, or mobile home, or a group
9 of rooms or a single room that is occupied as separate living quarters, in which the
10 occupants live and eat separately from any other persons in the building and that has
11 direct access from the outside of the building or through a common hall.
12 (11) "Licensee" means a natural person, a corporation, limited liability
13 company, partnership, joint stock association, sole proprietorship, joint venture,
14 business association, cooperative association, professional corporation, or any other
15 legal entity or organization through which business is conducted who has been issued
16 a license by the Louisiana Department of Health pursuant to the provisions of this
17 Part.
18 (12) "Licensure" means any license or permit that the Louisiana Department
19 of Health is authorized to issue to any cultivator, commercial grower, seed producer,
20 contract carrier, and processor of cannabis and cannabis products.
21 (13) "Retailer" means an entity licensed by the office of alcohol and tobacco
22 control pursuant to R.S. 26:941 et seq. to purchase cannabis products from licensed
23 commercial growers and processors and to sell cannabis products to a consumer.
24 (14) "Secretary" means the secretary of the Louisiana Department of Health.
25 (15) "Usable cannabis" means the dried leaves and flowers of the cannabis
26 plant, and any mixture or preparation thereof, but shall not include the seeds, stalks,
27 and roots of the plant.
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1 §1058.3. General requirements; prohibitions; testing; tracking
2 A. No person or entity shall cultivate, transport, process, or manufacture
3 cannabis or cannabis products without a license issued by the department in
4 accordance with the provisions of this Part.
5 B. The department shall require laboratory testing of cannabis products in
6 a facility approved by the department prior to the transportation of such products
7 from a commercial grower or processor to a licensed retailer.
8 C.(1) The department shall establish a seed-to-sale tracking system that
9 tracks cannabis products from either the seed or immature plant stage until the
10 products are sold to consumers by licensed retailers.
11 (2) The department shall not delay implementation of the program of
12 licensure required by this Part pending establishment of the tracking system provided
13 for in this Paragraph.
14 §1058.4. Powers and duties of the secretary
15 In addition to the powers, duties, and responsibilities otherwise vested in him
16 by law, the secretary shall:
17 (1) Adopt rules and regulations as are necessary to implement the provisions
18 of this Part in accordance with the Administrative Procedure Act. The rules and
19 regulations shall include, without limitation, all of the following:
20 (a) Criteria for licensure and procedures for the issuance, renewal,
21 suspension, and revocation of licenses.
22 (b) Application, license, and testing fees to be assessed as authorized in
23 Chapter 20 of Subtitle II of Title 47 of the Louisiana Revised Statutes of 1950.
24 (c) Security requirements for cultivation and product manufacturing
25 facilities.
26 (d) Labeling and packaging requirements, including requirements for child-
27 resistant packaging, health and safety warnings, potency, and activation time.
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1 (e) Health and safety regulations and standards for the cultivation of
2 cannabis and the manufacturing of cannabis products, including pesticide use and
3 allowable extraction methods.
4 (2) Collect, administer, and disburse the proceeds of all fees, interest,
5 penalties, and other monies collected pursuant to this Part.
6 (3) Administer and enforce the provisions of this Part and the rules and
7 regulations adopted pursuant to this Part.
8 (4) Develop sampling and testing procedures to ensure safety and verify the
9 potency of cannabis cultivated and cannabis products manufactured pursuant to this
10 Part.
11 (5) Enter facilities for the purpose of conducting inspections, collecting
12 samples, testing, and examining and copying records.
13 (6) Hold hearings on alleged violations of the provisions of this Part or of the
14 rules and regulations adopted pursuant to this Part.
15 (7) Seek and obtain injunctive or other civil relief to restrain and prevent
16 violations of this Part, rules and regulations adopted pursuant to this Part, and orders
17 and rulings issued pursuant to this Part.
18 (8) Institute civil proceedings to enforce his orders or rulings, collect any
19 fees, penalties, or costs due under this Part, or to otherwise enforce the provisions of
20 this Part or rules and regulations adopted pursuant to this Part.
21 (9) Appoint and employ all personnel necessary for the efficient and proper
22 administration of this Part.
23 §1058.5. Licensure requirements; authorization to obtain criminal history record
24 information
25 A. The department shall develop an annual, nontransferable cannabis
26 business license to be issued in the following categories:
27 (1)(a) A cannabis commercial grower license, which shall authorize the
28 licensee to produce, transport, and sell approved cannabis seeds and cultivate,
29 handle, and transport cannabis in this state.
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1 (b)(i) A cannabis commercial grower licensee may sell cannabis to a licensed
2 cannabis processor or licensed cannabis retailer in this state, and may sell approved
3 cannabis seeds to other licensed cannabis commercial growers and individuals
4 holding a personal grower permit issued in accordance with this Part. A licensee
5 shall not sell directly to an individual.
6 (ii) The department shall provide information that identifies sellers of
7 cannabis seed to personal and commercial growers and processors.
8 (c) The sales authorized in Subparagraph (b) of this Paragraph shall be
9 considered wholesale sales.
10 (d) Each cannabis commercial grower licensee shall complete a monthly
11 yield and sales report to the department by the fifteenth of each month and provide
12 reporting on the previous month. Each report shall include, at a minimum, the
13 following information:
14 (i) Amount of cannabis harvested in pounds.
15 (ii) Amount of usable cannabis on hand.
16 (iii) Amount of cannabis and usable cannabis sold to processors in pounds.
17 (iv) Amount of usable cannabis sold to retailers in pounds.
18 (v) Total amount of wholesale sales in dollars.
19 (e)(i) The department shall have oversight and auditing responsibilities to
20 ensure that all cannabis being grown in this state is accounted for. A licensed
21 commercial grower shall only be subject to a penalty if a gross discrepancy exists
22 and cannot be explained.
23 (ii) The penalty for fraudulent reporting of sales occurring within any two-
24 year time period shall be revocation of the license.
25 (f) There shall be no limit on the amount of cannabis that a licensed cannabis
26 commercial grower may grow pursuant to the provisions of this Part.
27 (g) The department may randomly inspect the operation, including business
28 records and the cannabis crop, of any licensed cannabis commercial grower if any
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1 duly authorized officer or employee of the department has reason to believe that a
2 violation of this Part has occurred.
3 (h) The department may enter into a cooperative endeavor agreement with
4 the Department of Agriculture and Forestry to ensure cannabis seed complies with
5 the standards for seeds set by the Agricultural Chemistry and Seed Commission.
6 (2)(a) A cannabis processor license, which shall authorize the licensee to
7 handle, process, and transport cannabis and cannabis products in this state.
8 (b) For purposes of this Paragraph, "process" means the converting of
9 cannabis into cannabis products.
10 (c)(i) The department shall promulgate rules for the preparation of cannabis
11 products in accordance with the State Food, Drug, and Cosmetic Law, R.S. 40:601
12 et seq. The rules shall not be excessive or punitive in nature.
13 (ii) Any facility processing cannabis shall be subject to inspection by the
14 department in accordance with the rules established pursuant to this Subparagraph
15 or as provided in R.S. 40:631. The department may conduct such inspections once
16 per year or upon reasonable belief that a violation of this Part has occurred. If
17 deficiency is found, a written deficiency report shall be issued to the processor. The
18 processor shall correct the deficiency within thirty days of receipt of the deficiency
19 report or be subject to license suspension or revocation.
20 (d) A processor may sell cannabis products that it produces to a licensed
21 cannabis retailer or any other licensed cannabis processor, and such sales shall be
22 considered wholesale sales. A processor shall not sell directly to an individual.
23 (e) A licensed cannabis processor shall complete and submit to the
24 department a monthly yield and sales report by the fifteenth of each month and
25 provide reporting on the previous month. Each report shall include, at a minimum,
26 the following information:
27 (i) Amount of cannabis purchased from cannabis commercial growers in
28 pounds.
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1 (ii) Amount of cannabis processed and the amount of cannabis waste in
2 pounds.
3 (iii) Total amount of wholesale sales in dollars.
4 (f)(i) The department shall have oversight and auditing responsibilities to
5 ensure that all cannabis being grown in this state is accounted for. A licensed
6 processor shall only be subject to a penalty if a gross discrepancy exists and cannot
7 be explained.
8 (ii) The penalty for fraudulent reporting of sales occurring within any two-
9 year time period shall be revocation of the license.
10 (3)(a) A cannabis contract carrier license, which shall authorize the licensee
11 to transport cannabis and cannabis products from a licensed cannabis commercial
12 grower, licensed cannabis processor, or licensed cannabis retailer in this state to a
13 licensed cannabis commercial grower, licensed cannabis processor, or licensed
14 cannabis retailer in this state.
15 (b) All cannabis or cannabis products shall be transported in a locked
16 container and clearly labeled "Cannabis or Cannabis Products" on the outside of the
17 container.
18 B. No licensed cannabis commercial grower or cannabis processor shall be
19 located in a "drug free zone" as defined in R.S. 17:405(A).
20 C. The number of cannabis business licenses or license categories that an
21 applicant may apply for or receive shall not be limited; however, each application
22 and each category shall require a separate application and fee. A cannabis
23 commercial grower, cannabis processor, and cannabis contract carrier may share the
24 same address or physical location, subject to restrictions set forth in administrative
25 rules of the department.
26 D. As a condition of eligibility, the department shall require each applicant
27 for a license provided for in this Section to do all of the following:
28 (1) Submit a full set of fingerprints in a form and manner prescribed by the
29 department.
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1 (2) Permit the department to request and obtain state and national criminal
2 history record information on the applicant.
3 (3) Pay the reasonable costs to be incurred by the department in requesting
4 and obtaining state and national criminal history record information on the applicant.
5 E. In accordance with the provisions and procedure prescribed by this
6 Section, the department shall request and obtain state and national criminal history
7 record information from the bureau and the FBI relative to any applicant for
8 licensure whose fingerprints the department has obtained pursuant to this Section for
9 the purpose of determining the applicant's suitability and eligibility for licensure.
10 F. Upon request by the department, and upon submission of an applicant's
11 fingerprints and such other identifying information as may be required, the bureau
12 shall survey its criminal history records and identification files and make a
13 simultaneous request of the FBI for similar or related information from other
14 jurisdictions. The bureau may charge the department a reasonable processing fee for
15 conducting and reporting on any such search.
16 §1058.6. Suitability requirements
17 A. The department shall approve each application for a cannabis business
18 license that meets the following criteria:
19 (1) The applicant is twenty-five years of age or older.
20 (2) The applicant is a legal resident of this state and shows proof of his
21 residency. In the case of an applicant not applying as an individual, at least seventy-
22 five percent of the applicant organization's total ownership or membership shall be
23 comprised of persons who are Louisiana residents.
24 (3) The applicant shall be registered to conduct business in this state.
25 (4) If the applicant is not an individual, the applicant shall disclose all
26 ownership or membership of the applicant organization.
27 B. Any applicant who, at the time of application, has had a felony conviction
28 for a nonviolent offense in the last two years, has had any other type of felony
29 conviction in the last five years, or is currently incarcerated or jailed shall not qualify
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1 for a cannabis business license. This prohibition shall apply to all owners or
2 members of an applicant organization not applying as an individual.
3 §1058.7. Fees
4 A. Each applicant and each licensee, respectively, shall pay an application
5 fee and an annual license renewal fee to the department as required by the provisions
6 of Chapter 20 of Subtitle II of Title 47 of the Louisiana Revised Statutes of 1950.
7 B.(1) The application fee shall be payable to the department upon initial
8 application.
9 (2) The license renewal fee shall be payable to the department annually after
10 initial licensure.
11 §1058.8. Issuance of licenses to medical marijuana production facilities
12 Notwithstanding any provision of R.S. 40:1058.5 through 1058.7, the
13 department shall issue a cannabis commercial grower license, cannabis processor
14 license, and cannabis contract carrier license to each entity that holds a medical
15 marijuana production license issued pursuant to R.S. 40:1046 without necessity of
16 an application for the licenses. The department shall issue the licenses to the entity
17 free of charge.
18 §1058.9. Personal cultivation permits
19 A.(1) The department shall develop an annual personal cultivation permit for
20 cultivation and possession of cannabis plants by individuals for personal use.
21 (2) The permit shall authorize the permittee to cultivate and possess up to six
22 cannabis plants for personal consumption.
23 (3) The permit shall not authorize the permittee to sell any part of a cannabis
24 plant to any person.
25 (4) The department shall charge an annual fee for the permit in the amount
26 authorized in Chapter 20 of Subtitle II of Title 47 of the Louisiana Revised Statutes
27 of 1950.
28 B. An individual shall be twenty-one years of age or older to be eligible for
29 a personal cultivation permit.
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1 C. Each application for a personal cultivation permit shall be made on a form
2 and in a manner prescribed by the secretary that, at a minimum, shall include proof
3 of age, proof of residence, and a description of the location and security plan for the
4 proposed cannabis grow site.
5 D. Each housing unit shall have no more than twelve cannabis plants
6 regardless of how many persons twenty-one years of age or older reside in the
7 housing unit.
8 E. Personal cultivation of cannabis shall only occur in an enclosure that is
9 screened from public view and is secure so that access is limited to the cultivator and
10 persons twenty-one years of age or older who have permission from the cultivator.
11 §1058.10. Therapeutic marijuana
12 Nothing in this Part shall be construed to limit any privileges or rights of a
13 patient to whom therapeutic marijuana has been recommended or of a therapeutic
14 marijuana production facility as provided for in R.S. 40:1046.
15 Section 4. R.S. 40:966(B)(2)(introductory paragraph) and (D)(1) are hereby
16amended and reenacted to read as follows:
17 §966. Penalty for distribution or possession with intent to distribute narcotic drugs
18 listed in Schedule I; possession of marijuana, synthetic cannabinoids, and
19 heroin
20 * * *
21 B. Violations of Subsection A. Any person who violates Subsection A of
22 this Section with respect to:
23 * * *
24 (2) A substance classified in Schedule I which is marijuana,
25 tetrahydrocannabinols, or chemical derivatives of tetrahydrocannabinols, or a
26 synthetic cannabinoids cannabinoid for an amount of:
27 * * *
28 D. If a person knowingly or intentionally possesses a controlled substance
29 as classified in Schedule I, unless such substance was obtained directly or pursuant
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1 to a valid prescription or order from a practitioner, as provided in R.S. 40:978, while
2 acting in the course of his professional practice, where the amount of the controlled
3 substance is equal to or above the following weights, it shall be considered a
4 violation of Subsection A of this Section:
5 (1) For marijuana, tetrahydrocannabinol, synthetic cannabinoids, or chemical
6 derivatives thereof, two and one-half pounds.
7 * * *
8 Section 5. R.S. 40:964(Schedule I)(C)(19) and 966(C)(2) and (F) are hereby repealed
9in their entirety.
10 Section 6.(A) The commissioner of alcohol and tobacco control shall solicit broad
11public input and participation in developing the framework for regulation of cannabis
12retailers provided for in Section 2 of this Act.
13 (B) The commissioner of alcohol and tobacco control shall initiate the promulgation
14of all rules required by the provisions of Section 2 of this Act through the notice of intent
15process provided for in R.S. 49:953(A) prior to December 1, 2021.
16 (C) The commissioner of alcohol and tobacco control shall take no action to enforce
17the provisions of Section 2 of this Act prior to the sixtieth day after the date of adoption of
18the administrative rules required by this Section.
19 Section 7.(A) The secretary of the Louisiana Department of Health shall solicit
20broad public input and participation in developing the framework for regulation of
21cultivators, commercial growers, seed producers, contract carriers, and processors of
22cannabis and cannabis products provided for in Section 3 of this Act.
23 (B) The secretary of the Louisiana Department of Health shall initiate the
24promulgation of all rules required by the provisions of Section 3 of this Act through the
25notice of intent process provided for in R.S. 49:953(A) prior to December 1, 2021.
26 (C) The secretary of the Louisiana Department of Health shall take no action to
27enforce the provisions of Section 3 of this Act prior to the sixtieth day after the date of
28adoption of the administrative rules required by this Section.
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1 Section 8. This Section and Sections 1, 2, 3, 6, 7, and 9 of this Act shall become
2effective on August 1, 2021.
3 Section 9. Sections 4 and 5 of this Act shall become effective if, in an election
4conducted on November 8, 2022, a majority of the electors voting on the proposition to
5legalize marijuana approve the proposition.
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 524 Original 2021 Regular Session Nelson
Abstract: Provides for the decriminalization of marijuana for recreational use and
regulation of that product by the office of alcohol and tobacco control and the La.
Department of Health.
Ballot Proposition to Legalize Marijuana
Proposed law provides that at the statewide election occurring on Nov. 8, 2022, a proposition
shall appear on the ballot in every parish to determine whether the possession, distribution,
or dispensing of marijuana, tetrahydrocannabinols, or chemical derivatives thereof shall be
legal for persons 21 years of age or older. Provides that the ballot for the election shall state
as follows:
"PROPOSITION ON LEGALIZATION OF MARIJUANA
Shall persons twenty-one years of age or older be permitted to possess,
purchase, sell, and produce marijuana, tetrahydrocannabinols, or chemical
derivatives thereof which are regulated by the State of Louisiana?"
Proposed law provides that if a majority of the qualified electors of the state voting on the
proposition approve the proposition, then the possession, distribution, or dispensing of
marijuana, tetrahydrocannabinols, or chemical derivatives thereof by persons 21 years of age
or older shall no longer be a criminal offense.
Proposed law provides that if a majority of the electors in any parish voting on the
proposition do not approve the proposition, then the state shall not issue any license for
production, retail sale, processing, or personal cultivation of any marijuana or cannabis
product in that parish as otherwise authorized in proposed law.
Repeal of Laws Criminalizing Marijuana
Proposed law provides for the repeal of all of the following:
(1)Present law classifying marijuana as a controlled dangerous substance.
(2)Present law providing criminal penalties for possession and distribution of
marijuana.
(3)Present law providing for immunity from prosecution for possession of marijuana
in certain circumstances which would become inapplicable if marijuana is legalized.
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Proposed law makes the effectiveness of the repeal of these laws contingent upon a majority
of the electors who vote on the proposition to legalize marijuana in the Nov. 8, 2022,
election approving the proposition.
Regulation of Cannabis Cultivation and Processing
Proposed law defines "cannabis" as all parts of plants of the genus Cannabis, whether
growing or not, the seeds thereof, the resin extracted from any part of such plant, and every
compound, manufacture, salt, derivative, mixture, or preparation of such plant, its seeds, or
resin; but shall not include the mature stalks of such plant, fiber produced from such stalks,
oil or cake made from the seeds of such plant, any other compound, manufacture, salt,
derivative, mixture, or preparation of such mature stalks (except the resin extracted
therefrom), fiber, oil, or cake or the sterilized seed of such plant which is incapable of
germination.
Proposed law authorizes the La. Department of Health (LDH) to exercise regulatory
authority over the cultivation, processing, and manufacturing of cannabis products in this
state in accordance with the provisions of proposed law.
Proposed law prohibits the cultivation, transportation, processing, and manufacturing of
cannabis or cannabis products without a license issued by LDH in accordance with proposed
law.
Proposed law provides for powers and duties of the secretary of LDH with respect to
cannabis cultivation and processing.
Proposed law requires LDH to develop an annual, nontransferable cannabis business license
to be issued in the following categories:
(1)A cannabis commercial grower license, which shall authorize the licensee to
produce, transport, and sell approved cannabis seeds and cultivate, handle, and
transport cannabis in this state.
(2)A cannabis processor license, which shall authorize the licensee to handle, process,
and transport cannabis and cannabis products in this state.
(3)A cannabis contract carrier license, which shall authorize the licensee to transport
cannabis and cannabis products from a licensed cannabis commercial grower,
licensed cannabis processor, or licensed cannabis retailer in this state to a licensed
cannabis commercial grower, licensed cannabis processor, or licensed cannabis
retailer in this state
Proposed law provides for requirements, authorizations, restrictions, and prohibitions
associated with each type of license to be issued by LDH. Requires criminal background
checks on applicants for licensure, provides for conditions for eligibility for licensure, and
establishes suitability requirements for licensees.
Proposed law prohibits cannabis commercial growers and cannabis processors from being
located in any "drug free zone" as defined in present law, R.S. 17:405(A).
Proposed law stipulates that the number of cannabis business licenses or license categories
that an applicant may apply for or receive shall not be limited. Provides that a cannabis
commercial grower, cannabis processor, and cannabis contract carrier may share the same
address or physical location, subject to restrictions set forth in administrative rules of LDH.
Proposed law requires that, notwithstanding any other provision of proposed law, LDH shall
issue a cannabis commercial grower license, cannabis processor license, and cannabis
contract carrier license to each entity that holds a medical marijuana production license
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issued pursuant to present law, R.S. 40:1046, without necessity of an application for the
licenses.
Proposed law requires LDH to develop an annual personal cultivation permit for cultivation
and possession of cannabis plants by individuals for personal use. Provides that the permit
shall authorize the permittee to cultivate and possess up to six cannabis plants for personal
consumption. Stipulates that the permit shall not authorize the permittee to sell any part of
a cannabis plant to any person.
Proposed law requires that an individual be 21 years of age or older in order to be eligible
for a personal cultivation permit.
Proposed law provides standards and restrictions pertaining to cultivation of cannabis by
persons who hold a personal cultivation permit.
Proposed law provides that nothing therein shall be construed to limit any privileges or rights
of a patient to whom therapeutic marijuana has been recommended or of a therapeutic
marijuana production facility as provided for in present law, R.S. 40:1046.
Proposed law requires the commissioner to solicit broad public input and participation in
developing the framework for regulation of cannabis retailers provided for in proposed law.
Requires the commissioner to initiate the promulgation of all rules required by proposed law
through the notice of intent process provided for in present law, R.S. 49:953(A), prior to
Dec. 1, 2021.
Proposed law provides that the commissioner shall take no action to enforce the provisions
of proposed law prior to the 60th day after the date of adoption of the administrative rules
required by proposed law.
Regulation of Retail Sale of Cannabis
Proposed law requires the commissioner of alcohol and tobacco control in the Department
of Revenue, referred to hereafter as the "commissioner", to develop a cannabis retailer
permit and adopt rules and regulations pertaining to the permit. Requires that prior to
selling, offering for sale, exposing for sale, or possessing for sale or distribution cannabis
in any quantity, a person shall obtain a permit in accordance with the provisions of proposed
law.
Proposed law requires that an applicant for a retailer permit meet the following
qualifications:
(1)Be 21 years of age or older.
(2)Provide proof of valid lease or ownership of premises in which the business will be
located.
(3)Shall not be convicted of any offense involving a narcotic listed in Schedule I of
present law known as the Uniform Controlled Dangerous Substances Law, R.S.
40:961 et seq., provided the offense was not marijuana-related.
Proposed law prohibits cannabis retailers from being located in any "drug free zone" as
defined in present law, R.S. 17:405(A).
Proposed law requires that retail locations contain a restricted area where cannabis and
cannabis products are stored and sold. Provides that all of the following requirements shall
apply with respect to such restricted areas:
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(1)The restricted areas shall be supervised by a retailer employee at all times when
customers are present to ensure that only persons who are 21 years of age and older
are permitted to enter.
(2)Retailer employees shall make reasonable efforts to limit the number of customers
in relation to the number of employees present in the restricted area at any time.
Proposed law requires, notwithstanding other provisions of proposed law, that the
commissioner shall issue a cannabis retailer permit to each entity that holds a marijuana
pharmacy license issued pursuant to present law, R.S. 40:1046, without necessity of an
application for the permit.
Proposed law prohibits persons under 21 years of age from entering the premises of, or being
employed in, a cannabis retail establishment.
Proposed law prohibits cannabis retailers from all of the following activities:
(1)The sale of more than one ounce of cannabis or cannabis products to any individual
per calendar day.
(2)The sale of cannabis or cannabis products over the internet. All sales of cannabis
and cannabis products must take place within a cannabis retail location.
(3)The sale or giving away of any consumable that is not cannabis or cannabis product,
including but not limited to cigarettes or tobacco products, alcoholic beverages, food
products, and non-alcohol beverages.
(4)Advertising in violation of restrictions provided in proposed law.
Proposed law prohibits cannabis retailers from advertising through any means other than a
single internet website and signage at its premises that conforms with the following
standards:
(1)There may be a maximum of two separate signs on the exterior of its premises which
identify the business by its business or trade name.
(2)No sign shall exceed 1,600 square inches in size.
Proposed law specifically prohibits cannabis retailers from advertising through public media
including, without limitation, newspapers, billboards, television, radio, social media, and
internet advertising on any website other than the single site allowed by Paragraph (1) of this
Subsection.
Proposed law provides causes for suspension and revocation of cannabis retailer permits.
Prohibits cannabis retailers from doing or permitting any of the following acts on or about
the licensed premises:
(1)Selling or serving cannabis products to any person under 21 years of age.
(2)Intentionally enticing, aiding, or permitting any person under the age of 21 to visit
or loiter in or about any place where cannabis products are the principal commodities
sold, handled, or given away.
(3)Permitting any person under 21 years of age to work in any capacity on the premises.
(4)Permitting any prostitution activities on the premises.
(5)Permitting the consumption of cannabis or cannabis products on the premises.
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(6)Intentionally conducting illegal gambling, as defined by present law, on the premises
described in the application for the permit.
(7)Failing to keep the premises clean and sanitary.
(8)Illegally selling, offering for sale, possessing, or permitting the consumption on or
about the licensed premises of any kind or type of controlled dangerous substances
or other illegal substances.
(9)Permitting any disturbance of the peace or obscenity, or any lewd, immoral, or
improper entertainment, conduct, or practices on the licensed premises.
Proposed law requires the secretary of LDH to solicit broad public input and participation
in developing the framework for regulation of cultivators, commercial growers, seed
producers, contract carriers, and processors of cannabis and cannabis products provided for
in proposed law. Requires the secretary to initiate the promulgation of all rules required by
proposed law through the notice of intent process provided for in present law, R.S.
49:953(A), prior to Dec. 1, 2021.
Proposed law provides that the secretary of LDH shall take no action to enforce the
provisions of proposed law prior to the 60th day after the date of adoption of the
administrative rules required by proposed law.
Unlawful Sale, Purchase, and Possession of Cannabis Products
Proposed law provides that unlawful sale of cannabis to persons under 21 is the selling or
otherwise delivering for value of any cannabis product to any person under 21 years of age.
Provides that lack of knowledge of the person's age shall not be a defense. Provides that
whoever violates proposed law shall be fined not less than $500 nor more than $1,000 or
imprisoned for not less than 30 days nor more than six months, or both.
Proposed law provides that it is unlawful for any person under 21 years of age to purchase
or have public possession of any cannabis product. Provides that, for purposes of proposed
law, "public possession" means the possession of any cannabis product for any reason,
including consumption, on any street, highway, or waterway or in any public place or any
place open to the public, including a club which is de facto open to the public. Stipulates,
however, that "public possession" does not include the following:
(1)The possession or consumption of any cannabis product:
(a)For an established religious purpose.
(b)When a person under 21 years of age is accompanied by a parent, spouse, or
legal guardian 21 years of age or older.
(c)In a private residence, which shall include a residential dwelling and up to 20
contiguous acres, on which the dwelling is located, owned by the same
person who owns the dwelling.
(2)Possession of medical marijuana which has been recommended to a patient and
dispensed in accordance with present law, R.S. 40:1046.
Proposed law provides that whoever violates its prohibition on persons under 21 purchasing
or having public possession of any cannabis product shall be fined not more than $100.
Provides that any person apprehended while violating the provisions of proposed law shall
be issued a citation by the apprehending law enforcement officer, which shall be paid in the
same manner as provided for the offenders of local traffic violations. Stipulates that a
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citation issued by a law enforcement officer for such violation shall not be included on the
person's criminal history record.
Proposed law provides that it is unlawful for any person, other than a parent, spouse, or legal
guardian, to purchase on behalf of a person under 21 years of age any cannabis product.
Provides that whoever violates the provisions of proposed law shall be fined not more than
$500 or imprisoned for not more than 30 days, or both.
Proposed law provides that nothing therein shall be construed as relieving any licensed
cannabis retailer of any responsibilities imposed under proposed law relative to licensure and
regulation of such retailers.
(Amends R.S. 40:966(B)(2)(intro. para.) and (D)(1); Adds R.S. 14:93.21-93.25, R.S. 26:941-
948, R.S. 40:989.4 and 1058.1-1058.10; Repeals R.S. 40:964(Schedule I)(C)(19) and
966(C)(2) and (F))
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