HLS 24RS-3193 ENGROSSED
2024 Regular Session
HOUSE BILL NO. 978 (Substitute for House Bill No. 54 by Representative Newell)
BY REPRESENTATIVE NEWELL
CONTROLLED SUBSTANCES: Provides relative to the regulation of cannabis
1 AN ACT
2To enact Part XI of Chapter 4 of Title 40 of the Louisiana Revised Statutes of 1950, to be
3 comprised of R.S. 40:1050.1 through 1050.11 and Chapter 9 of Title 26 of the
4 Louisiana Revised Statutes of 1950, to be comprised of R.S. 26:941 through 949,
5 relative to cannabis; to provide for definitions; to provide relative to the cultivation,
6 processing, and manufacturing of cannabis and cannabis products; to provide for
7 licensing; to provide for the authority of the Louisiana Department of Health; to
8 provide for criminal history checks and suitability requirements; to provide for
9 application, permit, and license fees; to provide for transportation restrictions; to
10 provide for civil penalties; to provide relative to the retail sale of cannabis and
11 cannabis products; to provide for retailer permits and fees; to provide for age
12 restrictions regarding the purchase of cannabis and cannabis products; to provide for
13 additional restrictions; to provide relative to the suspension or revocation of permits;
14 to require promulgation of administrative rules; to provide for applicability; to
15 provide for a program of social equity in the industry; and to provide for related
16 matters.
17Be it enacted by the Legislature of Louisiana:
18 Section 1. Part XI of Chapter 4 of Title 40 of the Louisiana Revised Statutes of 1950,
19comprised of R.S. 40:1050.1 through 1050.11, is hereby enacted to read as follows:
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1 PART XI. CANNABIS
2 §1050.1. Purpose
3 The Louisiana Department of Health is hereby authorized to exercise
4 regulatory authority over the cultivation, processing, and manufacturing of cannabis
5 and cannabis products in Louisiana.
6 §1050.2. Social equity in the cannabis industry
7 It shall be the intent of the Legislature of Louisiana that there shall be no
8 barriers to the entry, acceptance or approval of applications or licensure for
9 individuals and communities most adversely impacted by the enforcement of
10 marijuana laws. In the interest of establishing a legal cannabis industry that is
11 equitable and accessible to those most adversely impacted by the enforcement of
12 drug-related laws in this state, including cannabis related laws, the Legislature of
13 Louisiana finds and declares that a program of social equity should be established.
14 The Legislature of Louisiana also finds and declares that individuals who have been
15 arrested or incarcerated due to drug laws suffer long-lasting negative consequences,
16 including impacts to employment, business ownership, housing, health, and long-
17 term financial well-being. The Legislature of Louisiana declares that promotion of
18 business ownership by individuals who have resided in areas of high poverty and
19 high enforcement of cannabis-related laws furthers an equitable cannabis industry.
20 Therefore, in the interest of remedying the harms resulting from the disproportionate
21 enforcement of cannabis-related laws, the Legislature of Louisiana finds and declares
22 that a program of social equity should offer, among other things, financial assistance
23 and license application benefits to individuals most directly and adversely impacted
24 by the enforcement of cannabis-related law who are interested in starting cannabis
25 business establishments.
26 §1050.3. Definitions
27 As used in this Chapter, the following terms shall have the following
28 meanings:
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1 (1) "Applicant" means a natural person, 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 that 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 Department of Public Safety and Corrections, office of state
9 police.
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 produced
14 from such stalks, oil or cake made from the seeds of such plant, any other compound,
15 manufacture, salt, derivative, mixture, or preparation of such mature stalks (except
16 the resin extracted therefrom), fiber, oil, or cake or the sterilized seed of such plant
17 which is incapable of germination.
18 (4) "Criminal history record information" means information collected by
19 state and federal criminal justice agencies on individuals consisting of identifiable
20 descriptions and notations of arrests, detentions, indictments, bills of information,
21 or any formal criminal charges, and any disposition arising therefrom, including
22 sentencing, criminal correctional supervision, and release. It shall not include
23 intelligence information gathered for investigatory purposes or any identification
24 information which does not indicate involvement of the individual in the criminal
25 justice system.
26 (5) "Cultivate" or "cultivating" means planting, growing, and harvesting
27 cannabis.
28 (6) "Department" means the Louisiana Department of Health.
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1 (7) "FBI" means the Federal Bureau of Investigation of the United States
2 Department of Justice.
3 (8) "Licensee" means a natural person, corporation, limited liability
4 company, partnership, joint stock association, sole proprietorship, joint venture,
5 business association, cooperative association, professional corporation, or any other
6 legal entity or organization through which business is conducted that has been issued
7 a license by the Louisiana Department of Health to produce cannabis and cannabis
8 products.
9 (9) "Licensure" means any license or permit that the Louisiana Department
10 of Health is authorized to issue for the production of cannabis and cannabis products
11 and the facility producing cannabis and cannabis products.
12 (10) "Permit" means authorization issued by the Louisiana Department of
13 Health for a natural person to work for, or on behalf of, a licensee.
14 (11) "Permittee" means a principle officer, board member, or member of the
15 licensee or producer, or a person employed in the operation or supervision of the
16 licensee's operation, including any individual whose employment duties directly
17 relate to the growing, cultivating, harvesting, processing, weighing, labeling,
18 packing, transporting, and selling of cannabis or cannabis products.
19 (12) "Production facility" means a facility operating pursuant to a license
20 issued by the Louisiana Department of Health to cultivate and process cannabis,
21 manufacture cannabis products, package and label cannabis products, and sell
22 cannabis to licensed retailers. A production facility shall not sell cannabis directly
23 to consumers.
24 (13) "Retailer" means an entity licensed by the office of alcohol and tobacco
25 control pursuant to R.S. 26:943 to purchase cannabis products from licensed
26 production facilities and sell cannabis products to a consumer.
27 (14) "Secretary" shall mean the secretary of the Louisiana Department of
28 Health.
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1 §1050.4. General requirements; prohibitions; testing; tracking
2 A. No person or entity shall cultivate, process, or manufacture cannabis or
3 cannabis products without a license issued by the department pursuant to this
4 Chapter.
5 B. The department shall test the cannabis products in a laboratory approved
6 by the department prior to the products being transported from a production facility
7 to a licensed retailer.
8 C.(1) Laboratories approved by the department may include any of the
9 following:
10 (a) The agricultural chemistry laboratory of the Department of Agriculture
11 and Forestry.
12 (b) The colleges, universities, other institutions, and systems governed by the
13 Louisiana Board of Regents.
14 (c) The public-private partnerships involving the systems, colleges and
15 universities governed by the Louisiana Board of Regents and private laboratories.
16 (d) Private laboratories.
17 (2) The Department of Agriculture Forestry agricultural chemistry laboratory
18 and any public Louisiana university laboratory shall be exempt from the application
19 process and deemed approved, but any laboratory approved or deemed approved by
20 the department must be accredited by the National Institute on Drug Abuse, the
21 National Environmental Laboratory Accreditation Conference, the International
22 Organization for Standardization, or any other accrediting entity approved by the
23 department, which accreditation shall be maintained active and in good standing or
24 other substantially similar status for the duration of such approval.
25 D. The department shall establish a seed-to-sale tracking system that tracks
26 the cannabis from either the seed or immature plant stage until the product is sold to
27 a consumer by a licensed retailer.
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1 §1050.5. Powers and duties of the secretary
2 In addition to the powers, duties, and responsibilities otherwise vested in the
3 secretary by law, the secretary shall:
4 (1) Adopt rules and regulations as are necessary to implement the provisions
5 of this Chapter. The rules and regulations shall include but not be limited to:
6 (a) Criteria for licensure and procedures for the issuance, renewal,
7 suspension, and revocation of licenses.
8 (b) Application, license, permit, and testing fees.
9 (c) Security requirements for cultivation and product manufacturing
10 facilities.
11 (d) Labeling and packaging requirements, including requirements for child
12 resistant packaging, health and safety warnings, potency, and activation time.
13 (e) Health and safety regulations and standards for the cultivation of
14 cannabis and the manufacturing of cannabis products, including pesticide use and
15 allowable extraction methods.
16 (2) Collect, administer, and disburse the proceeds of all fees, interest,
17 penalties, and other monies collected pursuant to this Chapter.
18 (3) Administer and enforce the provisions of this Chapter and the rules and
19 regulations adopted pursuant to this Chapter.
20 (4) Develop sampling and testing procedures to ensure safety and verify the
21 potency of cannabis cultivated and cannabis products manufactured pursuant to this
22 Chapter.
23 (5) Enter facilities for the purpose of conducting inspections, collecting
24 samples, testing, and examining and copying records.
25 (6) Hold hearings on alleged violations of the provisions of this Chapter or
26 of the rules and regulations adopted pursuant to this Chapter.
27 (7) Impose civil penalties for violations of the orders issued pursuant to the
28 provisions of this Chapter or of the rules and regulations adopted pursuant to this
29 Chapter.
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1 (8) Seek and obtain injunctive or other civil relief to restrain and prevent
2 violations of this Chapter, rules and regulations adopted pursuant to this Chapter, or
3 orders and rulings issued pursuant to this Chapter.
4 (9) Institute civil proceedings to enforce the orders or rulings of the
5 secretary, collect any fees, fines, penalties, or costs due under this Chapter or to
6 otherwise enforce the provisions of this Chapter or of the rules and regulations
7 adopted pursuant to this Chapter.
8 (10) Appoint and employ all personnel necessary for the efficient and proper
9 administration of this Chapter.
10 §1050.6. Licensure requirements; authorization to obtain criminal history record
11 information
12 A.(1) The Louisiana Department of Health shall develop an annual,
13 nontransferable production facility license for the cultivation, processing, and
14 manufacturing of cannabis and cannabis products.
15 (a) The department shall limit the number of licenses granted in the state to
16 no more than ten licenses. Once the maximum number of licenses have been issued,
17 the department shall only issue new licenses after a current license is either revoked
18 or not renewed or with legislative approval. The department shall issue any
19 approved new licenses in accordance with the criteria and procedures outlined in this
20 Section.
21 (b) The department shall develop rules in accordance with the
22 Administrative Procedure Act to ensure the number of production facilities are
23 equally distributed geographically throughout the state. The department shall use,
24 at a minimum, the following criteria to develop such rules for issuing licenses:
25 (i) Population distribution of the state.
26 (ii) Preference to applicants who have resided in this state or owned the
27 property on which the production facility will be located for at least five years prior
28 to the effective date of this Chapter and shall have a stake of at least fifty-one percent
29 ownership in the license.
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1 (c) No production facility shall be located in a "drug free zone" as defined
2 in R.S. 17:405(A).
3 (d) No licensee shall sell or transfer their license to another person that has
4 not been a Louisiana resident for at least five years prior to the sale or transfer or to
5 an entity that does not have an ownership group made up of at least fifty-one percent
6 of Louisiana residents residing in the state at least five years prior to the sale or
7 transfer.
8 (2) Any license awarded pursuant to this Section shall not exceed five years.
9 B. As a condition of eligibility, the department shall require an applicant to
10 do the following:
11 (1) Submit a full set of fingerprints, in a form and manner prescribed by the
12 department.
13 (2) Permit the department to request and obtain state and national criminal
14 history record information on the applicant.
15 C. Prior to entering into any contract, memorandum of understanding, or
16 cooperative endeavor agreement with a licensee, a subcontractor shall also comply
17 with the conditions of eligibility contained in Subsection B of this Section in order
18 to receive contract approval from the department.
19 D. In accordance with the provisions and procedure prescribed by this
20 Section, the department shall request and obtain state and national criminal history
21 record information from the bureau and the FBI relative to any applicant for
22 licensure whose fingerprints the department has obtained pursuant to this Section for
23 the purpose of determining the applicant's suitability and eligibility for licensure.
24 E. Upon request by the department and upon submission of an applicant's
25 fingerprints, and such other identifying information as may be required, the bureau
26 shall survey its criminal history records and identification files and make a
27 simultaneous request of the FBI for similar or related information from other
28 jurisdictions. The bureau may charge the applicant a reasonable processing fee for
29 conducting and reporting on any such search.
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1 §1050.7. Suitability requirements
2 A. The department shall not grant any license or issue any other contract
3 approval pursuant to the provisions of this Chapter if the applicant or subcontractor
4 or any officer, director, or any person having a five percent or more economic
5 interest in the entity seeking licensure or contract approval has been disqualified on
6 the basis of the following criteria:
7 (1) Has been convicted or entered a plea of guilty or nolo contendere for any
8 of the following:
9 (a) Theft or attempted theft, illegal possession of stolen things, or any
10 offense or attempt involving the misappropriation of property or funds within five
11 years from the date of application.
12 (b) Any offense involving fraud or attempted fraud or false statements or
13 declarations within five years from the date of application.
14 (c) A crime of violence as defined in R.S. 14:2(B).
15 (d) Any offense involving Schedule I narcotics, provided the offense was not
16 marijuana related.
17 (2) There is a current prosecution or pending charge against the person in
18 any jurisdiction for any offense listed in Paragraph (1) of this Subsection.
19 (3) The applicant or any person required to be suitable pursuant to this
20 Section fails to provide information and documentation to reveal any fact material
21 to a suitability determination or supplies information which is untrue or misleading
22 as to a material fact pertaining to the suitability criteria.
23 B. No person shall obtain a license pursuant to this Section if the applicant,
24 subcontractor, or any of the service providers in the chain of subcontractors, is
25 owned wholly or in part by any state employee or member of a state employee's
26 immediate family, including but not limited to any legislator, statewide public
27 official, university or community or technical college employee, Louisiana State
28 University Agricultural Center employee, or Southern University Agricultural Center
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1 employee. For the purposes of this Paragraph, "immediate family" has the same
2 meaning as provided in R.S. 42:1102.
3 C. No person licensed pursuant to this Section shall give or receive anything
4 of value in connection with any contract, memorandum of understanding, or
5 cooperative endeavor agreement executed pursuant to this Section except the value
6 that is expressed in the contract, memorandum of understanding, or cooperative
7 endeavor agreement.
8 D. Any contract, memorandum of understanding, or cooperative endeavor
9 agreement entered into with any licensee or subcontractor pursuant to this Section
10 shall be a public record subject to disclosure pursuant to the Public Records Law,
11 R.S. 44:1 et seq.
12 §1050.8. Fees; disposition of funds
13 A. The department shall establish fees to be paid by an applicant.
14 (1) The application fee shall not exceed two thousand five hundred dollars.
15 The application fee shall be nonrefundable.
16 (2) The application fee shall be payable to the department upon submission
17 of the application.
18 B. The department shall collect a suitability fee to be paid to the office of
19 state police, gaming enforcement section, to investigate the applicant once chosen
20 as the licensee.
21 C. The department shall establish a production facility license fee to be paid
22 by the licensee in accordance with the following:
23 (1) The license fee shall not exceed one hundred thousand dollars.
24 (2) The license fee shall be paid annually to the department.
25 D. The department shall establish a permit fee to be paid for a person
26 employed in the operation or supervision of the licensee's operation in accordance
27 with the following:
28 (1) The permit fee shall not exceed fifty dollars.
29 (2) The permit fee shall be payable annually to the department.
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1 E. The department shall establish a transportation carrier fee to be paid for
2 a person employed in transporting cannabis or cannabis products in accordance with
3 the following:
4 (1) The transportation carrier fee shall not exceed two hundred fifty dollars.
5 (2) The permit fee shall be payable annually to the department.
6 F. All fees collected and retained by the department shall be used to fund the
7 expenses relating to the regulation and control of cannabis and cannabis products as
8 provided for in this Chapter.
9 §1050.9. Transportation of cannabis
10 A. A licensee shall only be allowed to transport cannabis or cannabis
11 products to the following locations:
12 (1) From its production facility to a testing facility approved by the
13 department pursuant to this Chapter.
14 (2) From its production facility to a licensed retailer.
15 (3) When a specific nonroutine transport request from the licensee is
16 approved in writing by the department.
17 B. Any licensee using an employee of the business or contracting with an
18 outside carrier for the purpose of this Section shall first have the employee or outside
19 carrier approved by the department in accordance with the procedures for a
20 subcontractor under this Chapter.
21 §1050.10. Civil penalties
22 A. Any person who violates any provision of this Chapter, or any rule or
23 regulation adopted pursuant to this Chapter, shall be subject to a civil penalty of not
24 more than fifty thousand dollars for each act of violation and for each day of
25 violation. Each day on which a violation occurs shall constitute a separate offense.
26 B. Civil penalties may be assessed only by a ruling of the secretary based
27 upon an adjudicatory hearing held in accordance with the provisions of the
28 Administrative Procedure Act and this Chapter.
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1 §1050.11. Therapeutic marijuana; issuance of licenses to therapeutic marijuana
2 production facilities
3 A. Nothing in this Chapter shall be construed to limit any privileges or rights
4 of a medical marijuana patient or production facility as provided by R.S. 40:966(F)
5 and 1046.
6 B. Notwithstanding any provision of R.S. 40:1050.7 through 1050.9, the
7 department shall issue a cannabis production facility license to each entity that,
8 pursuant to R.S. 40:1046, participated in a competitive public bid process and was
9 awarded and entered into a contract with either the Louisiana State University
10 Agricultural Center or the Southern University Agricultural Center for the
11 cultivation, extraction, and production of therapeutic cannabis in Louisiana without
12 necessity of an application for license. The department shall issue the licenses to the
13 entity free of charge.
14 Section 2. Chapter 9 of Title 26 of the Louisiana Revised Statutes of 1950,
15comprised of R.S. 26:941 through 949, is hereby enacted to read as follows:
16 CHAPTER 9. CANNABIS AND CANNABIS PRODUCTS
17 §941. Social equity in the marijuana industry
18 It shall be the intent of the Legislature of Louisiana that there shall be no
19 barriers to the entry, acceptance, or approval of applications or licensure for
20 individuals and communities most adversely impacted by the enforcement of
21 marijuana laws. In the interest of establishing a legal cannabis industry that is
22 equitable and accessible to those most adversely impacted by the enforcement of
23 drug-related laws in this state, including cannabis related laws, the Legislature of
24 Louisiana finds and declares that a program of social equity should be established.
25 The Legislature of Louisiana also finds and declares that individuals who have been
26 arrested or incarcerated due to drug laws suffer long-lasting negative consequences,
27 including impacts to employment, business ownership, housing, health, and
28 long-term financial well-being. The Legislature of Louisiana declares that
29 promotion of business ownership by individuals who have resided in areas of high
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1 poverty and high enforcement of cannabis-related laws furthers an equitable cannabis
2 industry. Therefore, in the interest of remedying the harms resulting from the
3 disproportionate enforcement of cannabis-related laws, the Legislature of Louisiana
4 finds and declares that a program of social equity should offer, among other things,
5 financial assistance and license application benefits to individuals most directly and
6 adversely impacted by the enforcement of cannabis-related law who are interested
7 in starting cannabis business establishments.
8 §942. Definitions
9 As used in this Chapter, the following terms shall have the following
10 meanings:
11 (1) "Applicant" means a natural person, a corporation, limited liability
12 company, partnership, joint stock association, sole proprietorship, joint venture,
13 business association, cooperative association, professional corporation, or any other
14 legal entity or organization through which business is conducted that has applied to
15 the office of alcohol and tobacco control within the Department of Revenue for a
16 cannabis retailer permit.
17 (2) "Bureau" means the Louisiana Bureau of Criminal Identification and
18 Information of the Department of Public Safety and Corrections, office of state
19 police.
20 (3) "Cannabis" means all parts of plants of the genus Cannabis, whether
21 growing or not, the seeds thereof, the resin extracted from any part of such plant, and
22 every compound, manufacture, salt, derivative, mixture, or preparation of such plant,
23 its seeds or resin, but shall not include the mature stalks of such plant, fiber produced
24 from such stalks, oil or cake made from the seeds of such plant, any other compound,
25 manufacture, salt, derivative, mixture, or preparation of such mature stalks (except
26 the resin extracted therefrom), fiber, oil, or cake or the sterilized seed of such plant
27 which is incapable of germination.
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1 (4) "Cannabis retailer" means any person, other than a wholesaler, who sells,
2 offers for sale, exposes for sale, or has in his possession for sale or distribution any
3 cannabis in any quantity.
4 (5) "Commissioner" means the commissioner of alcohol and tobacco control
5 who shall be the assistant secretary of the office of alcohol and tobacco control in the
6 Department of Revenue.
7 (6) "Criminal history record information" means information collected by
8 state and federal criminal justice agencies on individuals consisting of identifiable
9 descriptions and notations of arrests, detentions, indictments, bills of information,
10 or any formal criminal charges, and any disposition arising therefrom, including
11 sentencing, criminal correctional supervision, and release. It shall not include
12 intelligence information gathered for investigatory purposes or any identification
13 information which does not indicate involvement of the individual in the criminal
14 justice system.
15 (7) "Department" means the office of alcohol and tobacco control within the
16 Department of Revenue.
17 (8) "FBI" means the Federal Bureau of Investigation of the United States
18 Department of Justice.
19 (9) "Production facility" means a facility that sells cannabis and cannabis
20 products to a licensed cannabis retailer exclusively within the state, that conducts a
21 bona fide wholesale business, maintains a warehouse or warehouses for the storage
22 and warehousing of cannabis and cannabis products in the area where domiciled and
23 licensed by the state, conducts and maintains systematic and regular solicitations,
24 distribution, deliveries, and sales of cannabis and cannabis products to licensed retail
25 dealers located within the boundary of this state.
26 §943. Permits
27 A.(1) The commissioner shall issue, as authorized by this Chapter, a
28 cannabis retailer permit and shall adopt rules and regulations that specify the
29 identifying information that is required to appear on the face of each permit. Prior
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1 to selling, offering for sale, exposing for sale, or possessing for sale or distribution
2 cannabis in any quantity, a person shall obtain a permit in accordance with the
3 provisions of this Section.
4 (2) The commissioner shall develop rules for issuing retailer permits in
5 accordance with the Administrative Procedure Act to ensure the number of retailers
6 are equally distributed amongst each region of the state in accordance with this
7 Section. The department shall use, at a minimum, the following criteria to develop
8 such rules for issuing permits:
9 (a) Population distribution of each region.
10 (b) Preference to applicants residing in an area with a disproportionately high
11 number of nonviolent marijuana drug arrests and convictions.
12 (c) Preference to applicants who have resided in the state for at least five
13 years prior to the effective date of this Chapter.
14 B.(1) The commissioner shall issue a total of forty permits statewide, with
15 no more than five permits issued for any one geographic area covering the eight
16 regional planning commissions created pursuant to Subparts C and F of Part IV of
17 Chapter 1 of Title 33 of the Louisiana Revised Statutes of 1950, except for as
18 provided in Paragraph (2) of this Subsection. A permit shall be valid for a period of
19 two years unless suspended or revoked pursuant to this Chapter.
20 (2) The commissioner may issue more than the allowable statewide total of
21 permits if the market demands and requests necessitate such an increase; however,
22 the commissioner shall seek to maintain a statewide and regional balance of permits
23 issued.
24 (3) Permit holders shall contact the commissioner regarding the renewal of
25 all permits prior to the end of the term of the permit in accordance with the
26 provisions of this Chapter.
27 §944. Fees; disposition of funds
28 A. The department shall establish an application fee to be paid by an
29 applicant.
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1 (1) The application fee shall not exceed two thousand five hundred dollars.
2 (2) The application fee shall be payable to the department upon submission
3 of the application, prior to the department beginning any review, and prior to the
4 submission of a full set of fingerprints by the applicant.
5 B. The department shall establish a cannabis retailer permit fee to be paid by
6 the permittee in accordance with the following:
7 (1) The initial permit fee shall not exceed one hundred thousand dollars.
8 However, the department may reduce the amount of the fee only if the population
9 distribution is limited.
10 (2) The permit fee shall be payable to the department upon issuance of the
11 permit. The permittee shall pay a renewal fee of fifty thousand dollars every year
12 thereafter.
13 C. All fees collected and retained by the department shall be used to fund the
14 expenses related to the regulation and control of cannabis and cannabis products as
15 provided for in this Chapter. The department shall use a portion of the application
16 fee to cover the expenses associated with obtaining an applicant's fingerprints and
17 criminal history record information. The department shall not charge an applicant
18 any fee beyond the application fee for these expenses.
19 §945. General requirements; authorizations to obtain criminal history record
20 information; qualifications; location; and ratios
21 A. An applicant for a retailer permit shall meet the following qualifications:
22 (1) Be twenty-one years of age or older.
23 (2) Provide proof of valid lease or ownership of premises in which the
24 business will be located.
25 B. As a condition of eligibility, the department shall require an applicant to
26 do the following:
27 (1) Submit a full set of fingerprints, in a form and manner prescribed by the
28 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 C. In accordance with the provisions and procedures prescribed by this
4 Section, the department shall request and obtain state and national criminal history
5 record information from the bureau and the FBI relative to any applicant for a retail
6 permit whose fingerprints the department has obtained pursuant to this Section for
7 the purpose of determining the applicant's suitability and eligibility for a permit.
8 D. Upon request by the department and upon submission of an applicant's
9 fingerprints, and such other identifying information as may be required, the bureau
10 shall survey its criminal history records and identification files and make a
11 simultaneous request of the FBI for similar or related information from other
12 jurisdictions. The bureau may charge the department a reasonable processing fee for
13 conducting and reporting on any such search.
14 E. No retail location shall be located in a "drug free zone" as defined in R.S.
15 17:405(A).
16 F. Retail locations shall only sell cannabis and cannabis products and shall
17 not sell any other products or services besides cannabis and cannabis products. The
18 retail location shall have the following provisions:
19 (1) The location shall be supervised by a retailer employee at all times when
20 customers are present to ensure only persons who are twenty-one years of age and
21 older are permitted to enter.
22 (2) Retail employees shall make reasonable efforts to limit the number of
23 customers in relation to the number of employees present in the location at any time.
24 (3) If the applicant's business is to be conducted wholly or partly by one or
25 more managers, agents, servants, employees, or other representatives, those persons
26 shall also possess the qualifications required of the applicant and shall furnish
27 verification of suitability in accordance with the provisions of this Chapter.
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1 G. The commissioner shall promulgate rules and regulations pursuant to the
2 provisions of the Administrative Procedure Act as necessary to implement the
3 provisions of this Section and any additional requirements.
4 §946. Suitability requirements
5 The department shall not grant any permit pursuant to the provisions of this
6 Chapter if the applicant or any officer, director, or any person having a five percent
7 or more economic interest in the entity seeking a permit has been disqualified on the
8 basis of the following criteria:
9 (1) Has been convicted or entered a plea of guilty or nolo contendere for any
10 of the following:
11 (a) Theft or attempted theft, illegal possession of stolen things, or any
12 offense or attempt involving the misappropriation of property or funds five years
13 from the date of application.
14 (b) Any offense involving fraud or attempted fraud or false statements or
15 declarations five years from the date of application.
16 (c) A crime of violence as defined in R.S. 14:2(B).
17 (d) Any offense involving Schedule I narcotics, provided the offense was not
18 marijuana related.
19 (2) There is a current prosecution or pending charge against the person in
20 any jurisdiction for any offense listed in Paragraph (1) of this Subsection.
21 (3) The applicant or any person required to be suitable pursuant to this
22 Section fails to provide information and documentation to reveal any fact material
23 to a suitability determination or supplies information which is untrue or misleading
24 as to a material fact pertaining to the suitability criteria.
25 §947. Age requirements
26 No person under twenty-one years of age shall enter the premises of, or be
27 employed in, a cannabis retail establishment.
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1 §948. Cannabis retailer restrictions
2 Cannabis retailers are prohibited from all of the following activities:
3 (1) The sale of more than one ounce of cannabis or cannabis related products
4 to any individual per calendar day.
5 (2) The sale of cannabis or cannabis products over the internet. All sales of
6 cannabis and cannabis products shall take place within a cannabis retail location.
7 (3) The sale or giving away of any consumable that is not cannabis or a
8 cannabis product, including but not limited to cigarettes or tobacco products, alcohol
9 beverages, food products, and non-alcohol beverages.
10 (4) The sale or giving away of any service that is not related to the sale of
11 cannabis or a cannabis product.
12 (5) Providing or allowing entertainment of any type on the premises of the
13 retail location.
14 §949. Suspension or revocations of retailer permits
15 A. No person holding a permit and no agent, associate, employee,
16 representative, or servant agent of any person, shall do or permit any of the following
17 acts to be done on or about the licensed premises:
18 (1)(a) Sell or serve cannabis or cannabis products to any person under
19 twenty-one years of age. To determine the age of the consumer, each person shall
20 submit any one of the following:
21 (i) A valid, current Louisiana driver's license which contains a photograph
22 and date of birth of the person presenting the driver's license. For the purposes of
23 this Item, a digitized credential through an electronic wallet, commonly known as
24 "LA Wallet", shall also be an acceptable form of a Louisiana driver's license.
25 (ii) A valid, current driver's license of another state which contains a
26 photograph of the person and the date of birth of the person submitting the driver's
27 license.
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1 (iii) A valid, current special identification card issued by the state of
2 Louisiana pursuant to R.S. 40:1321, containing a photograph of the person and the
3 date of birth of the person submitting the identification card.
4 (iv) A valid, current passport or visa issued by the federal government or
5 another country or nation, that contains a permanently attached photograph of the
6 person and the date of birth of the person submitting the passport or visa.
7 (v) A valid, current military or federal identification card issued by the
8 federal government containing a photograph of the person and the date of birth of the
9 person submitting the identification card.
10 (vi) A valid, current special identification card of another state which
11 contains a photograph of the person and the date of birth of the person submitting the
12 identification card.
13 (b) Each form of identification listed in Subparagraph (a) of this Paragraph
14 shall on its face establish the age of the person as twenty-one years of age or older,
15 and there shall be no reason to doubt the authenticity or correctness of the
16 identification. No form of identification mentioned in Subparagraph (a) of this
17 Paragraph shall be accepted as proof of age if it is expired, defaced, mutilated, or
18 altered. If the state identification card or lawful identification submitted is a
19 duplicate, the person shall submit additional identification which contains the name,
20 date of birth, and photograph of the person. A duplicate driver's license shall be
21 considered lawful identification for the purposes of this Paragraph, and a person shall
22 not be required to submit additional information containing the name, date of birth,
23 and photograph of the person. In addition, an educational institution identification
24 card, check cashing identification card, or employee identification card shall not be
25 considered as lawful identification for the purposes of this Paragraph.
26 (2)(a) Intentionally entice, aid, or permit any person under twenty-one years
27 of age to visit or loiter in or about any place where cannabis or cannabis products are
28 the principal commodities sold, handled, or given away.
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1 (b) Permit any person under twenty-one years of age to work in or on the
2 premises in any capacity.
3 (3) Permit any prostitution activities on the licensed premises even if such
4 activities are permitted by law.
5 (4) Sell, offer for sale, possess, or permit the consumption on or about the
6 licensed premises of any kind or type of cannabis or cannabis products.
7 (5) Intentionally conduct illegal gambling, as defined by law, on the
8 premises described in the application for the permit.
9 (6) Fail to keep the premises clean and sanitary.
10 (7) Illegally sell, offer for sale, possess, or permit the consumption on or
11 about the licensed premises of any kind or type of controlled dangerous substances
12 or other illegal substances.
13 (8) Permit any disturbance of the peace or obscenity, or any lewd, immoral,
14 or improper entertainment, conduct, or practices on the licensed premises.
15 B. A violation of the provisions of this Section by a retailer's agent,
16 associate, employee, representative, or servant shall be considered an act of the
17 retailer for purposes of suspension or revocation of a permit.
18 C. A person who violates the provisions of this Section or any rule or
19 regulation of the commissioner, where no other penalty is provided for in this
20 Section, shall be fined not less than two thousand five hundred dollars nor more than
21 ten thousand dollars, imprisoned for not less than six months nor more than five
22 years, or both. Any such violation shall be sufficient cause for the suspension or
23 revocation of a permit.
24 D. Notwithstanding the issuance of a permit by way of renewal, the
25 commissioner may revoke or suspend such permit, as prescribed by this Chapter, for
26 violations of this Section occurring during the permit period immediately preceding
27 the issuance of such permit.
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1 Section 3.(A) The secretary of the Louisiana Department of Health shall initiate the
2promulgation of all rules required by the provisions of Section 1 of this Act through the
3notice of intent process provided by R.S. 49:961 prior to December 1, 2024.
4 (B) The secretary of the Louisiana Department of Health shall take no action to
5enforce the provisions of Section 1 of this Act prior to the sixtieth day after the date of
6adoption of the administrative rules required by this Section.
7 Section 4.(A) The commissioner of alcohol and tobacco control shall initiate the
8promulgation of all rules required by the provisions of Section 2 of this Act through the
9notice of intent process provided by R.S. 49:961 prior to December 1, 2024.
10 (B) The commissioner of alcohol and tobacco control shall take no action to enforce
11the provisions of Section 2 of this Act prior to the sixtieth day after the date of adoption of
12the administrative rules required by this Section.
13 Section 5. The provisions of this Act shall not be effective until the cultivation, sale,
14or use of recreational cannabis is legalized at the federal level or in the state of Louisiana.
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 978 Engrossed 2024 Regular Session Newell
Abstract: Provides for the regulation of the cultivation, manufacture, and retail sale of
cannabis and cannabis products.
Proposed law authorizes the La. Dept. of Health to create and issue up to 10 cannabis
production facility licenses.
Proposed law defines "applicant", "bureau", "cannabis", "commissioner", "criminal history
record information", "cultivate", or "cultivating", "department", "FBI", "licensee",
"licensure", "permit", "permittee", "production facility", "retailer", and "secretary".
Proposed law requires applicants and subcontractors to undergo a state and national criminal
background check and prohibits the department from issuing a license or approving a
contract if the applicant, subcontractor, or any officer, director, or person with a 5% or more
economic interest in the license has been convicted of or entered a guilty or nolo contendere
plea for certain criminal offenses.
Proposed law requires each applicant of a production facility license and a retailer permit
to pay an application fee not to exceed $2,500, which will cover administrative costs, and
each production facility licensee to pay an annual license fee not to exceed $100,000.
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Proposed law requires each production facility licensee to pay a suitability fee, which will
be paid to the La. State Police, gaming enforcement section for the purpose of investigating
a chosen licensee's qualifications and an annual $50 permit fee for each person employed
in the operation or supervision of the licensee's operation.
Proposed law requires the department to develop rules for the issuing of licenses based on
a minimum criteria of the following:
(1)Population distribution of the state.
(2)Applicants who have resided in this state or owned the property on which the
production facility will be located for at least five years prior to the effective date of
this Act and have a stake of at least fifty-one percent ownership in the property.
Proposed law prohibits licensees from selling or transferring their license to another person
that has not been an La. resident for at least five years prior to the sale or transfer or to an
entity that does not have an ownership group made up of at least 51% of La. residents
residing in the state at least five years prior to the sale or transfer.
Proposed law prohibits anyone from being licensed, or to contract, to cultivate, process,
transport, or sale cannabis or cannabis products in the state that has been disqualified on the
basis of the following:
(1)Has been convicted or entered a plea of guilty or nolo contendere for any of the
following:
(a)Theft or attempted theft, illegal possession of stolen things, or any offense
or attempt involving the misappropriation of property or funds within five
years from the date of application.
(b)Any offense involving fraud or attempted fraud or false statements or
declarations within five years from the date of application.
(c)A crime of violence as defined in present law (R.S. 14:2(B)).
(d)Any offense involving Schedule I narcotics, provided the offense was not
marijuana related.
(2)There is a current prosecution or pending charge against the person in any
jurisdiction for any offense listed in proposed law.
(3)Fails to provide information and documentation to reveal any fact material to a
suitability determination or supplies information which is untrue or misleading as to
a material fact pertaining to the suitability criteria.
Proposed law allows for the transportation of cannabis and cannabis products in limited
situations between licensees and establishes a $250 contract carrier permit fee for any third
party contracting with a licensee for the purpose of transporting cannabis and cannabis
products.
Proposed law provides for civil penalties up to $50,000 per violation per day based upon
ruling of the commissioner of agriculture.
Proposed law clarifies that proposed law does not interfere with the rights of medical
marijuana patients or licensed medical marijuana production facilities and requires the
department to issue a production facility license to any current therapeutic marijuana license
holder.
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Proposed law requires the commissioner of the office of alcohol and tobacco control to issue
cannabis retailer permits and requires such a permit prior to selling cannabis or cannabis
products. Specifies that the retailer permit is valid for a two-year period. Limits the number
of permits to be issued in the state to 40 total and requires no more than five per regional
planning area of the state, but provides for situations where the commissioner may increase
the total permits issued.
Proposed law requires an initial retailer permit fee not to exceed $100,000, which may be
reduced by the commissioner if the population distribution is limited, and an annual renewal
fee of $50,000 every year thereafter.
Proposed law requires applicants for a retailer permit to be at least 21 years of age or older,
and prohibits anyone under the age of 21 from working in or entering the premises of a
retailer. Requires any employee of a retailer to furnish verification to the permittee that the
same suitability requirements as the permittee are met.
Proposed law restricts production facilities and retail locations from being located in a "drug
free zone".
Proposed law includes additional restrictions, including the following prohibitions:
(1)Selling more than one ounce of cannabis or cannabis products to any individual per
calendar day.
(2)Selling cannabis or cannabis products to persons under the age of 21. Requires
certain forms of identification to be presented to the retailer.
(3)Selling cannabis or cannabis products on the internet.
(4)Giving away or selling any consumable that is not cannabis or cannabis products,
including but not limited to, tobacco and alcohol products.
(5)Selling any products or services other than cannabis or cannabis products.
(6)Providing or permitting entertainment of any kind on the premises.
(7)Permitting prostitution on the premises.
Proposed law outlines acceptable forms of identification for consumers to provide to
retailers.
Proposed law authorizes the commissioner of alcohol and tobacco control to revoke or
suspend permits for violations of proposed law. Establishes fines and penalties ranging from
$2,500 to $10,000 and from six months to five years of jail time.
(Adds R.S. 40:1050.1-1050.11 and R.S. 26:941-949)
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