SLS 23RS-376 ORIGINAL 2023 Regular Session SENATE BILL NO. 198 BY SENATOR JACKSON Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana. AGRICULTURAL COMMODITIES. Provides relative to consumable hemp products. (8/1/23) 1 AN ACT 2 To amend and reenact R.S. 3:1483(G)(1), and 1484(C), relative to consumable hemp 3 products; to provide for testing and inspection of consumable hemp products; to 4 regulate the sale of consumable hemp products; to provide notice to retailers; to 5 provide for the storage and return of unused consumable hemp products; to provide 6 for the confiscation and destruction of consumable hemp; to provide with respect to 7 the authority of the commissioner of the office of alcohol and tobacco control; and 8 to provide for related matters. 9 Be it enacted by the Legislature of Louisiana: 10 Section 1. R.S. 3:1483(G)(1), and 1484(C) are hereby amended and reenacted to 11 read as follows: 12 §1483. Product approval; consumable hemp processors; Louisiana Department of 13 Health 14 * * * 15 G. The department shall: 16 (1)(a) Conduct an initial review of any product submitted pursuant to this 17 Section and notify the submitting party of any deficiencies existing which prevent Page 1 of 4 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 198 SLS 23RS-376 ORIGINAL 1 the approval of the product within fifteen business days of the date of submission. 2 If the department fails to notify the submitting party within fifteen business days of 3 the date of submission, the product may be sold by a wholesaler or retailer permitted 4 pursuant to R.S. 3:1484 from the day following the fifteenth business day until the 5 submitting party receives final approval or denial from the department for the 6 product. 7 (b) Allow any product that is pending approval and is affixed with a 8 pending approval sticker to be stored by the retailer or wholesaler in a separate 9 storage area, without the product being confiscated pending the final approval 10 or denial from the department. 11 (c)(i) Upon denying approval of the product, allow the retailer or 12 wholesaler to submit proof to the department within five business days of the 13 date of the denial notification, that the supplier or manufacturer was contacted 14 to return the product. If the retailer or wholesaler fails to submit proof of 15 contacting the supplier or manufacturer within the five days, on the sixth 16 business day the product shall be confiscated or destroyed at any time. 17 (ii) If the retailer or wholesaler has submitted proof to the department 18 that the supplier or manufacturer was contacted to return the product, the 19 product shall be removed from the storage area and returned to the supplier or 20 manufacturer within thirty calendar days of the date of the denial notification 21 from the department. Any product not returned by the thirtieth calendar day 22 shall be confiscated or destroyed at any time. 23 * * * 24 §1484. Permit to sell; office of alcohol and tobacco control 25 * * * 26 C.(1) The commissioner may establish and collect an annual retail permit fee 27 and an annual special event permit fee. The amount of each permit fee provided for 28 in this Subsection shall be based on the cost of the regulatory functions performed 29 and shall not exceed one hundred seventy-five dollars per year. Page 2 of 4 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 198 SLS 23RS-376 ORIGINAL 1 (2)(a) The commissioner shall electronically notify each retailer, within 2 five business days, of the legal status if consumable hemp products are declared 3 illegal to sell in the state. 4 (b) Upon notification from the commissioner that consumer hemp 5 products have been declared illegal to sell, each retailer shall submit, within 6 fifteen business days of the date of the commissioner's notification, a detailed 7 inventory list of the products he purchased prior to being notified that the 8 products have been declared illegal to sell in the state. 9 (c) After submitting the detailed inventory list to the commissioner, each 10 retailer shall have six months, after the day the commissioner receives the list, 11 to sell the consumable hemp products identified in the detailed inventory list. 12 * * * The original instrument and the following digest, which constitutes no part of the legislative instrument, were prepared by Lebra R. Bias. DIGEST SB 198 Original 2023 Regular Session Jackson Present law requires the department to conduct an initial review of any product submitted pursuant to present law and to notify the submitting party of any deficiencies existing which prevent the approval of the product within 15 business days of the date of submission. Proposed law retains present law. Present law provides that if the department fails to notify the submitting party within the time period required by present law the product may be sold by a wholesaler or retailer permitted pursuant to present law from the day following the 15th business day until the submitting party receives final approval or denial from the department for the product. Proposed law retains present law and requires the department to allow any product that is pending approval and is affixed with a pending approval sticker to be stored by the retailer or wholesaler in a separate storage area, without the product being confiscated pending the final approval or denial from the department. Proposed law requires the department to allow the retailer or wholesaler five business days from the date of the denial notification to submit proof that the supplier or manufacturer was contacted to return the product. Failure to submit proof by the sixth business day results in the product being confiscated or destroyed at anytime. Proposed law requires that if the retailer or wholesaler has submitted proof to the department that the supplier or manufacturer was contacted, then the product shall be removed from the storage area and returned to the supplier or manufacturer within 30 calendar days of the date of the denial notification from the department. Any product not returned by the 30th calendar day shall be confiscated or destroyed at any time. Page 3 of 4 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 198 SLS 23RS-376 ORIGINAL Present law authorizes the commissioner to establish and collect an annual retail permit fee and an annual special event permit fee in an amount based on the cost of the regulatory functions performed and not exceed $175 per year. Proposed law retains present law and requires the commissioner to electronically notify each retailer, within five business days, of the legal status if consumable hemp products are declared illegal to sell in the state. Proposed law provides that after submitting the detailed inventory list to the commissioner, each retailer shall have six months, after the day the commissioner receives the list, to sell the consumable hemp products identified in the detailed inventory list. Effective August 1, 2023. (Amends R.S. 3:1483(G)(1) and 1484(C)) Page 4 of 4 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions.