HLS 23RS-245 ENGROSSED 2023 Regular Session HOUSE BILL NO. 605 BY REPRESENTATIVES SCHEXNAYDER, ADAMS, COX, TRAVIS JOHNSON, LARVADAIN, SELDERS, AND STAGNI Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana. HEALTH: Provides relative to the regulation of consumable hemp products 1 AN ACT 2To amend and reenact R.S. 3:1481(13) and (14), 1482(B)(1), 1483(A)(1)(introductory 3 paragraph), (B)(introductory paragraph), (2), and (4) through (7), (C)(introductory 4 paragraph), (D), (E)(introductory paragraph), (F)(introductory paragraph), 5 (G)(introductory paragraph), (1), and (2), and (H) through (L), and 1484(A)(1), 6 (B)(1)(a), (3), and (4), and (C) through (H), to enact R.S. 3:1481(15), 1483(F)(4) and 7 (M) through (Q), and 1484(I), and to repeal R.S. 3:1482(E), relative to consumable 8 hemp products; to provide for definitions; to provide relative to the authority and 9 responsibilities of the Louisiana Department of Health; to provide relative to fees 10 collected by the Louisiana Department of Health; to provide for product 11 requirements; to provide for limits on servings and packages; to provide relative to 12 the authority and responsibilities of the office of alcohol and tobacco control; to 13 provide relative to fees collected by the office of alcohol and tobacco control; to 14 provide for the revocation of registration of certain products; to provide for reporting 15 requirements; to provide for fines; and to provide for related matters. 16Be it enacted by the Legislature of Louisiana: 17 Section 1. R.S. 3:1481(13) and (14), 1482(B)(1), 1483(A)(1)(introductory 18paragraph), (B)(introductory paragraph), (2), and (4) through (7), (C)(introductory 19paragraph), (D), (E)(introductory paragraph), (F)(introductory paragraph), (G)(introductory 20paragraph), (1), and (2), and (H) through (L), and 1484(A)(1), (B)(1)(a), (3), and (4), and (C) Page 1 of 14 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 23RS-245 ENGROSSED HB NO. 605 1through (H) are hereby amended and reenacted and R.S. 3:1481(15), 1483(F)(4) and (M) 2through (Q), and 1484(I) are hereby enacted to read as follows: 3 §1481. Definitions 4 As used in this Part: 5 * * * 6 (13) "Synthetically-derived tetrahydrocannabinol" means any 7 tetrahydrocannabinol that is not derived from the naturally occurring constituents of 8 Cannabis sativa L. plant material and is not a naturally occurring constituent of 9 Cannabis sativa L. plant material. 10 (13) (14) "THC" means a combination of any tetrahydrocannabinol and 11 tetrahydrocannabinolic acid. 12 (14) (15) "Wholesaler" means a wholesale seller, distributor, or packer of 13 consumable hemp products. 14 §1482. Consumable hemp products; prohibitions 15 * * * 16 B. No person shall process, sell, or offer for sale: 17 (1) Any alcoholic beverage containing cannabidiol any cannabinoid. 18 * * * 19 §1483. Product approval; consumable hemp processors; Louisiana Department of 20 Health 21 A. The department shall be responsible for the following: 22 (1) Reviewing and registering consumable hemp products to ensure the 23 products comply with the provisions of this Part. 24 (2) Reviewing and approving labels to ensure the labels comply with the 25 provisions of this Part. 26 (3) Maintaining a list of registered consumable hemp products and verifying 27 the products on the list comply with the provisions of this Part. 28 (4) Issuing consumable hemp processing permits and regulating the 29 permitted facilities and permitees. Page 2 of 14 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 23RS-245 ENGROSSED HB NO. 605 1 A. B.(1) Each consumable hemp processor shall obtain an annual 2 consumable hemp processor permit issued by the department. The department shall 3 charge and collect an annual consumable hemp processor permit fee. The fee shall 4 be for each separate processing facility and shall be based on the annual sales of such 5 facility according to the following schedule: 6 * * * 7 B. C. Any consumable hemp product that is manufactured, distributed, 8 imported, or sold for use in Louisiana shall meet the following criteria: 9 * * * 10 (2) Be approved and registered with the department in accordance with the 11 provisions of this Section. The department shall charge and collect a fee of not more 12 than fifty twenty-five dollars for each separate and distinct product registered. This 13 charge shall be in lieu of the charge collected pursuant to R.S. 40:628. 14 * * * 15 D. All consumable hemp products shall meet the following criteria in order 16 to receive approval from the department: 17 (4) (1) Not be marketed as dietary. 18 (5) (2) Not contain any active pharmaceutical ingredient (API) recognized 19 by the United States Food and Drug Administration other than cannabidiol a 20 cannabinoid. The provisions of this Paragraph shall not apply to products intended 21 for topical application. 22 (3) Be contained in tamper-evident packaging. A package shall be deemed 23 tamper-evident if it clearly indicates prior access to the container. 24 (4) Not be labeled, marketed, or intended for inhalation. Placement of "not 25 for inhalation", "do not inhale", or similar language on the label or packaging shall 26 not prohibit a determination by the department that the product is marketed or 27 intended for inhalation. 28 (5) Not be marketed to children. In addition to any requirements established 29 by the department, products labeled or marketed in a way that bears any reasonable Page 3 of 14 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 23RS-245 ENGROSSED HB NO. 605 1 resemblance to an existing food product that is familiar to the public as a widely 2 distributed, branded food product such that a product could be mistaken for the 3 branded product shall be considered marketed to children. 4 (6) Not contain any type of cannabinoid that does not naturally occur in 5 hemp. 6 (7) Not contain any synthetically-derived tetrahydrocannabinol. 7 (6) (8)(a) For consumable hemp products, a product shall not Not exceed a 8 total delta-9 THC concentration of more than 0.3 percent or a total THC 9 concentration of more than one percent. The total THC in a product shall not exceed 10 eight milligrams per serving. The provisions of this Subparagraph shall not apply 11 to floral hemp material. 12 (b) For floral hemp material, a product shall not exceed a total delta-9 THC 13 concentration of more than 0.3 percent on a dry weight basis or a total THC 14 concentration of more than one percent on a dry weight basis. 15 (c) Any consumable hemp product that exceeds the THC limits provided in 16 this Paragraph that was registered with the department prior to June 16, 2022, may 17 be sold in Louisiana until January 1, 2023. 18 (7) (9) A serving shall be clearly identified by one of the following means 19 determined as follows: 20 (a) The package contains a measuring device that measures single servings 21 of the product. 22 (b) The packaging clearly enables a consumer to determine when a single 23 serving has been consumed. 24 (a) For tinctures, extracts, concentrates, and other liquid-type products, the 25 package shall include a measuring device capable of administering a single serving. 26 A dropper, cap, or measuring cup included with the package shall be considered an 27 acceptable measuring device. Page 4 of 14 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 23RS-245 ENGROSSED HB NO. 605 1 (b) For beverages, a single can, bottle, or other container shall contain a 2 maximum of a single serving. A tincture as provided for in Subparagraph (a) of this 3 Paragraph shall not be considered a beverage. 4 (c) For floral hemp material, a package shall contain a maximum of a single 5 serving. 6 (d) For all other products: 7 (i) An individual unit shall constitute a single serving and shall be separate 8 and unattached to other units within a package. 9 (ii) Multiple servings shall not be combined into one unit. 10 (iii) A unit shall not be scored or separated in order to produce a single 11 serving. 12 (iv) A package shall contain a maximum of twenty servings. 13 C. E.(1) All labels shall meet the following criteria in order to receive 14 approval from the department: 15 * * * 16 D. In addition to the requirements provided in Subsections B and C of this 17 Section, floral hemp material shall: 18 (1) Be contained in tamper-evident packaging. A package shall be deemed 19 tamper-evident if it clearly indicates prior access to the container. 20 (2) Not be labeled or marketed for inhalation. 21 E. F.(1) The application for registration shall include a certificate of analysis 22 containing the following information: 23 * * * 24 (4) The test included on the certificate of analysis shall take place after any 25 modifications to floral hemp material have been completed. 26 F. G. The certificate of analysis required by Subsection E of this Section 27 shall be completed by an independent laboratory that meets the following criteria: 28 * * * Page 5 of 14 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 23RS-245 ENGROSSED HB NO. 605 1 H. The department may require any applicant seeking registration of a 2 consumable hemp product to submit photographs or renderings of the product that 3 accurately depict the entirety of the product, including all accessories or physical 4 items included or sold with the product by the applicant, whether attached or not. 5 The department may also require submission of a specimen of the actual product and 6 all included accessories if the department determines in its sole discretion that 7 submitted renderings or photographs do not allow a sufficient determination that the 8 product meets all applicable requirements of this Part or any rule promulgated by the 9 department pursuant to this Part. 10 I. To ensure products comply with the registration and labeling provisions 11 provided in this Part, the department may conduct randomized sampling, analyzing, 12 and testing of consumable hemp products approved by the department. The 13 department may contract with a third-party laboratory for purposes of this 14 Subsection. 15 J.(1) The department shall refuse to register any consumable hemp product 16 that violates or fails to conform to any applicable provisions of this Part or any rules 17 promulgated by the department pursuant to this Part. 18 (2) The registration of any consumable hemp product that violates or fails 19 to conform to any applicable provision of this Part or any rules promulgated by the 20 department pursuant to this Part shall be subject to revocation. 21 G. K. The department shall: 22 (1) Conduct an initial review of any product submitted pursuant to this 23 Section and notify the submitting party of any deficiencies existing which prevent 24 the approval of the product within fifteen business days of the date of submission. 25 If the department fails to notify the submitting party within fifteen business days of 26 the date of submission, the product may be sold by a wholesaler or retailer permitted 27 pursuant to R.S. 3:1484 from the day following the fifteenth business day until the 28 submitting party receives final approval or denial from the department for the Page 6 of 14 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 23RS-245 ENGROSSED HB NO. 605 1 product. The department shall indicate the product's temporary approval status on 2 its list of registered products. 3 (2) Provide a the list of registered products to the office of alcohol and 4 tobacco control, law enforcement, and other necessary entities as determined by the 5 department. 6 * * * 7 H. L. The provisions of this Section do not authorize any person to 8 manufacture, distribute, import, or sell any cannabinoid product derived from any 9 source other than hemp. 10 I. M. Any facility processing industrial hemp products intended for human 11 consumption that do not meet the definition of consumable hemp product provided 12 in this Part shall be regulated in accordance with the State Food, Drug, and Cosmetic 13 Law. 14 J. N. Whoever processes consumable hemp products without a license shall 15 be subject to imprisonment at hard labor for not less than one year nor more than 16 twenty years and shall be fined not more than fifty thousand dollars. In addition to 17 the penalties provided in this Subsection, the department may seek an injunction 18 prohibiting a person from processing consumable hemp products without a license. 19 K. O. The provisions of this Part shall not apply to any cannabinoid product 20 approved by the United States Food and Drug Administration or produced in 21 accordance with R.S. 40:1046. 22 P. In addition to the department's authority to revoke the registration of any 23 consumable hemp product pursuant to this Section, the department is authorized to 24 impose the following penalties: 25 (1) Any consumable hemp processor that violates or fails to conform to any 26 relevant provision or requirement of this Part or any rule promulgated by the 27 department pursuant to this Part, shall be subject to a fine not to exceed two hundred 28 fifty dollars per offense. Each day on which a violation occurs shall constitute a 29 separate offense. Page 7 of 14 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 23RS-245 ENGROSSED HB NO. 605 1 (2) Revocation or refusal to issue or renew a consumable hemp processor 2 permit for cause, including but not limited to the following causes: 3 (a) Owing any outstanding final penalties imposed by the department against 4 the registrant or applicant, if a minimum of sixty days within which to pay any such 5 final penalties is provided. 6 (b) Having had the registration of at least three of the processor's registered 7 consumable hemp products finally revoked by the department. 8 (3) The provisions of this Subsection shall apply to juridical entities that 9 share common ownership as provided in rule by the department. 10 L. Q. The department shall promulgate rules and regulations in accordance 11 with the Administrative Procedure Act to implement the provisions of this Section. 12 In order to expedite implementation, the department shall utilize emergency 13 rulemaking. At a minimum, the The rules shall specify standards for product labels; 14 procedures for product and label approval; definitions for product types provided for 15 in Subsection B of this Section; limits for solvents, pesticides, microbials, and heavy 16 metals; requirements for accreditation for laboratories; any prohibited dosage 17 vehicles as determined by the department; and sanitary requirements specific to 18 consumable hemp processors; requirements to ensure the serving size and serving 19 identification criteria provided for in this Section are met; and procedures for denials 20 and revocations of products and permits. 21 §1484. Permit to sell; office of alcohol and tobacco control 22 A. The office of alcohol and tobacco control is responsible for and limited 23 to the following: 24 (1) Issuing wholesaler, retailer, and special event permits and regulating the 25 permitted facilities and permitees. 26 (2) Ensuring permittees are not selling any consumable hemp products that 27 are not on the Department of Health's list of registered products. 28 A. B.(1) Each wholesaler of consumable hemp products shall apply for and 29 obtain a permit from the office of alcohol and tobacco control. Page 8 of 14 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 23RS-245 ENGROSSED HB NO. 605 1 * * * 2 B. C.(1)(a) Each person who sells or is about to engage in the business of 3 selling at retail any consumable hemp product shall first apply for and obtain a 4 permit for each place of business from the office of alcohol and tobacco control. 5 * * * 6 (3) The commissioner may establish and collect an annual retail permit fee 7 and an annual special event permit fee. The amount of each permit fee provided for 8 in this Subsection shall be based on the cost of the regulatory functions performed. 9 The annual retail permit fee shall not exceed two hundred fifty dollars and the annual 10 special event permit fee shall not exceed one hundred seventy-five dollars per year. 11 (4) No permit issued pursuant to this Section shall authorize the permittee 12 to sell or offer for sale any cannabinoid product derived from any source other than 13 hemp. 14 (4)(a) D.(1) No consumable hemp product shall be sold to any person under 15 the age of eighteen years. 16 (b)(2) No adult-use consumable hemp product shall be sold to any person 17 under the age of twenty-one years. 18 C. The commissioner may establish and collect an annual retail permit fee 19 and an annual special event permit fee. The amount of each permit fee provided for 20 in this Subsection shall be based on the cost of the regulatory functions performed. 21 and shall not exceed one hundred seventy-five dollars per year. 22 D. E. Any person who violates any of the provisions of this Part or rules 23 adopted pursuant to this Part; who alters, forges, or counterfeits, or uses without 24 authority any permit or other document provided for in this Part; who operates 25 without a permit; or who fails to collect or to timely pay the assessments, fees, and 26 penalties due or assessed pursuant to this Part shall be subject, in addition to any 27 unpaid assessments, late fees, or collection costs, to the civil penalties provided in 28 this Section. Each day on which a violation occurs shall constitute a separate offense 29 Subsection. Page 9 of 14 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 23RS-245 ENGROSSED HB NO. 605 1 (1) For a first offense, a fine of not more than three five hundred dollars for 2 each act of violation and each day of violation. 3 (2) For a second offense that occurs within two years of the first offense, a 4 fine of not more than one thousand dollars for each act of violation and each day of 5 violation. 6 (3) For a third or subsequent offense that occurs within two years of the first 7 offense, a fine of not less than five hundred dollars but not more than three thousand 8 dollars for each act of violation and each day of violation. 9 E. F. In addition to the penalties provided in Subsection D Subsection E of 10 this Section, any permittee who violates any provisions of this Part shall be subject 11 to having his permit suspended or revoked. Any fine imposed pursuant to this Part 12 or the revocation or suspension of a permit is in addition to and is not in lieu of or 13 a limitation on the imposition of any other penalty provided by law. 14 F. G. In addition to the commissioner's authority to revoke or suspend a 15 permit pursuant to this Section, the secretary of the Department of Revenue shall 16 order the commissioner to immediately suspend the retailer's permit if the secretary 17 determines that a consumable hemp product retailer has failed to timely file returns 18 or pay taxes as required by R.S. 47:1693. The secretary shall order the 19 commissioner to suspend the retailer's permit until the returns have been filed and 20 the taxes are paid. No permit shall be suspended for taxes which have been properly 21 protested or appealed by the retailer pursuant to R.S. 47:1565 or 1567. 22 G. H. The office of alcohol and tobacco control shall investigate any report 23 of a violation of a provision of this Part and report any criminal violation to the 24 appropriate law enforcement agency. 25 H. I. The commissioner shall adopt rules and regulations in accordance with 26 the Administrative Procedure Act to implement the provisions of this Section. The 27 rules shall not include any fees or penalties for any permit not provided for in this 28 Section, or any requirements for proof of Louisiana residency, criminal background Page 10 of 14 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 23RS-245 ENGROSSED HB NO. 605 1 checks, diagrams of retail premises, or proof of lease or ownership of any retail 2 establishment. 3 Section 2. R.S. 3:1482(E) is hereby repealed in its entirety. 4 Section 3. Beginning July 1, 2023, and until July 1, 2025, the Louisiana Department 5of Health shall submit a quarterly report to the House and Senate committees on health and 6welfare. The report shall detail the number and types of products submitted to the 7department, the number and types of products approved by the department, and the number 8and types of products not approved by the department and the reasons therefor, and the 9number and types of products revoked by the department and the reasons therefor. 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 605 Engrossed 2023 Regular Session Schexnayder Abstract: Provides for the regulation of consumable hemp products. Present law provides for definitions relative to consumable hemp products. Proposed law adds a definition for "synthetically-derived cannabinoid". Present law prohibits any person from processing, selling, or offer for sale any alcoholic beverage containing cannabidiol. Proposed law expands the prohibition to prohibit any person from processing, selling, or offering for sale any alcoholic beverage containing any cannabinoid. Present law provides that Louisiana's consumable hemp law shall be preempted by any federal statute, federal regulation, or guidance from a federal government agency that is less restrictive than Louisiana's law. Proposed law repeals present law. Present law requires the La. Dept. of Health (LDH) to register consumable hemp products approves labels of consumable hemp products, and permit consumable hemp processors. Proposed law adds specific responsibilities of LDH relative to the regulatory role. Present law authorizes LDH to collect a registration fee of $50 per consumable hemp product. Proposed law reduces the fee from $50 to $25. Present law adds provisions that all consumable hemp products shall meet in order to receive approval from LDH: Page 11 of 14 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 23RS-245 ENGROSSED HB NO. 605 (1)Must be contained in tamper-evident packaging. (2)Not be labeled, marketed, or intended for inhalation. (3)Not be marketed to children. (4)Not contain any type of cannabinoid that does not naturally occur in hemp. (5)Not contain any synthetically-derived cannabinoid. Present law provides that consumable hemp products, including floral hemp material, cannot exceed a delta-9 THC concentration of more than 0.3% or a total THC concentration of more than 1%. Present law further restricts all consumable hemp products except for floral hemp material from exceeding 8mg of THC per serving. Proposed law removes the exemption for floral hemp material and applies the 8mg of THC per serving limit on all consumable hemp products. Proposed law provides the following restrictions on serving sizes: (1)For tinctures, extracts, concentrates, and other liquid-type products: the package shall include a measuring device capable of administering a single serving. (2)For beverages: a single can, bottle, or other container shall contain a maximum of a single serving. (3)For floral hemp material: a package shall contain a maximum of a single serving. (4)For all other products: (a)An individual unit shall constitute a single serving and shall be separate and unattached to other units within a package. (b)Multiple servings shall not be combined into one unit. (c)A unit shall not be scored or separated in order to produce a single serving. (d)A package shall contain a maximum of 20 servings. Present law requires applications for consumable hemp product registration to include a certificate of analysis. Proposed law requires the test included on the certificate of analysis to take place after any modifications to floral hemp material have been completed. Proposed law authorizes LDH to require any applicant seeking registration of a consumable hemp product to submit photographs or renderings of the product. Proposed law further authorizes LDH to also require submission of a specimen of the actual product and all included accessories if determined necessary by LDH and allows LDH to have the product lab tested by an independent lab. Proposed law authorizes LDH to conduct randomized sampling, analyzing, and testing of approved consumable hemp products. Present law outlines provisions that are required to be included in LDH's administrative rules. Proposed law retains present law and adds additional provisions. Page 12 of 14 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 23RS-245 ENGROSSED HB NO. 605 Present law provides regulatory authority the office of alcohol and tobacco control (ATC) for wholesaler, retailer, and special event permits. Proposed law adds specific responsibilities of ATC relative to the office's regulatory role. Present law authorizes ATC to collect an annual retail permit fee of $175. Proposed law increases the fee from $175 to $250. Proposed law requires LDH to submit certain information regarding consumable hemp products to the House and Senate health and welfare committees on a quarterly basis from July 1, 2023 to July 1, 2025. Proposed law adds the following additional penalties in addition to LDH's authority to revoke registrations of consumable hemp products: (1)Includes a fine of $250 per offense of a provision of this Section where each day a violation occurs will constitute a separate offense. (2) Revocation or refusal to issue or renew a consumable hemp processor permit for cause. (3)These penalties shall apply to juridical entities that share common ownership as provided in rule by the department. Present law contains penalties for any person who alters, forges, or counterfeits, or operates without a permit or otherwise not compliant with existing law. The penalty is based on offense. (1)For a first offense, not more than three hundred dollars. (2)For a second offense that occurs within two years of the first offense, not more than one thousand dollars. (3)For a third or subsequent offense that occurs within two years of the first offense, not less than five hundred dollars but not more than three thousand dollars. Proposed law contains penalties for any person who alters, forges, or counterfeits, or operates without a permit or otherwise not compliant with existing law. The penalty is based on a separate offense, as follows: (1)For a first offense, a fine of not more than five hundred dollars for each act of violation and each day of violation. (2)For a second offense that occurs within two years of the first offense, a fine of not more than one thousand dollars for each act of violation and each day of violation. (3) For a third or subsequent offense that occurs within two years of the first offense, a fine of not less than five hundred dollars but not more than three thousand dollars for each act of violation and each day of violation. (Amends R.S. 3:1481(13) and (14), 1482(B)(1), 1483(A)(1)(intro. para.), (B)(intro. para.), (2), and (4) through (7), (C)(intro. para.), (D), (E)(intro. para.), (F)(intro. para.), (G)(intro. para.), (1), and (2), and (H) through (L), and 1484(A)(1), (B)(1)(a), (3), and (4), and (C) through (H); Adds R.S. 3:1481(15), 1483(F)(4) and (M) through (Q), and 1484(I); Repeals R.S. 3:1482(E)) Page 13 of 14 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 23RS-245 ENGROSSED HB NO. 605 Summary of Amendments Adopted by House The Committee Amendments Proposed by House Committee on Health and Welfare to the original bill: 1. Revise the definition of "synthetically-derived tetrahyrdrocannabinol". 2. Insert a provision that prohibits producers of consumable products from marketing those products to children. 3. Add provisions to clarify what is an acceptable measuring device to be used with certain consumable hemp products. 4. Provide that tinctures are not considered beverages and will not be limited to a single serving. 5. Specify that LDH may contract with a third-party laboratory to test products to ensure compliance with respect to registration. 6. Add administrative penalties to those processing consumable hemp products without a license. 7. Provide for the revocation of registrations and administrative penalties. 8. Make technical corrections. Page 14 of 14 CODING: Words in struck through type are deletions from existing law; words underscored are additions.