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 699 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 (ATC)
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.
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 department of alcohol and tobacco control 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 ATC in accordance with proposed law.
Proposed law provides for powers and duties of the commissioner of ATC with respect to cannabis
cultivation and processing.
Proposed law requires ATC 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.
(4)A cannabis retailer license, which shall authorize the licensee to sell, offer to sell, expose for
sale, or possess for sale of cannabis.
Proposed law provides for requirements, authorizations, restrictions, and prohibitions associated with
each type of license to be issued by ATC. 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 ATC.
Proposed law requires that, notwithstanding any other provision of proposed law, ATC 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 issued pursuant to present
law, R.S. 40:1046, without necessity of an application for the licenses.
Proposed law requires ATC to develop an annual personal cultivation license for cultivation and
possession of cannabis plants by individuals for personal use. Provides that the license shall
authorize the licensee to cultivate and possess up to six cannabis plants for personal consumption.
Stipulates that the license shall not authorize the licensee 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 license.
Proposed law provides standards and restrictions pertaining to cultivation of cannabis by persons
who hold a personal cultivation license.
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 license and adopt
rules and regulations pertaining to the license. 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 license in accordance with the provisions of proposed law.
Proposed law requires that an applicant for a retailer license 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:
(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 license 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 license.
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 licenses. 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.
(6)Intentionally conducting illegal gambling, as defined by present law, on the premises
described in the application for the license.
(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 commissioner of ATC 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 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 of ATC 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 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.
Proposed law provides that the commissioner shall not issue a license if it has been prohibited in a
parish or municipality.
(Amends the heading of Title 26, R.S. 36:451(B) and 458(E), R.S. 40:966(B)(2)(intro. para.) and
(D)(1) and 1046(K), and R.S. 47:287.73(C)(1) and 301(10)(ii); Adds R.S. 14:93.21-26, R.S. 26:941-
965, and R.S. 40:1046(L); Repeals R.S. 40:964(Schedule I)(C)(19) and 966(C)(2) and (F))