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2024 Regular Session
SENATE BILL NO. 228
BY SENATOR MCMATH
PHARMACEUTICALS. Provides relative to marijuana for therapeutic use. (gov sig)
1 AN ACT
2 To amend and reenact R.S. 28:826(B)(1) and (2)(c) and (C)(1)(b) and R.S. 40:1046(H) and
3 (L), 1046.2(A), the introductory paragraph of 1046.2(B), the introductory paragraph
4 of 1046.2(B)(1), the introductory paragraph of 1046.2(B)(1)(a), 1046.2(B)(1)(b)
5 through (e), and (B)(2)(a), (C)(1), the introductory paragraph of 1046.2(C)(2), and
6 1046.2(C)(2)(a) and (c), the introductory paragraph of 1046.2(D), the introductory
7 paragraph of 1046.2(D)(1), and 1046.2(D)(2), (4), and (5), the introductory
8 paragraph of 1046.2(E) and 1046.2(E)(1), the introductory paragraph of 1046.2(F),
9 1046.2(F)(1), the introductory paragraph of 1046.2(F)(2), and 1046.2(F)(2)(b) and
10 (3), (G), (H)(1) and (2) and the introductory paragraph of 1046.2(H)(3), and the
11 introductory paragraph of 1046.2(I), the introductory paragraph of 1046.2(I)(1), and
12 1046.2(I)(1)(a) and (b), (2), and (3), and 1046.4(A)(1) and (3) and (C)(1) and (2) and
13 to repeal R.S. 28:826(B)(2)(d) and (C)(1)(c), relative to marijuana for therapeutic
14 use; to provide for regulatory administration and licensing; to provide for the
15 allocation of monies collected from the sale of therapeutic marijuana; to extend the
16 sunset; to provide for an effective date; and to provide for related matters.
17 Be it enacted by the Legislature of Louisiana:
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1 Section 1. R.S. 28:826(B)(1) and (2)(c) and (C)(1)(b) are hereby amended and
2 reenacted and R.S. 28:826(B)(2)(d) and (C)(1)(c) are hereby repealed as follows:
3 §826. Disability Services Fund
4 * * *
5 B.(1) Notwithstanding any other provision of law to the contrary, after
6 compliance with the requirements of Article VII, Section 9(B) of the Constitution of
7 Louisiana relative to the Bond Security and Redemption Fund, and after a sufficient
8 amount is allocated from that fund to pay all of the obligations secured by the full
9 faith and credit of the state which become due and payable within any fiscal year, the
10 treasurer shall deposit into the fund an amount equal to the amount collected by the
11 state attributable to the sale or lease of all or part of any movable and immovable
12 property previously operated by the office for citizens with developmental
13 disabilities within the Louisiana Department of Health, the proceeds of the fee
14 assessed pursuant to the provisions of R.S. 40:1046(H)(8)(a), and the proceeds of the
15 taxes levied pursuant to R.S. 47:9105(A) and (B).
16 (2) * * *
17 * * *
18 (c) The state treasurer shall deposit one-half of the monies attributable to the
19 proceeds of the fee assessed pursuant to the provisions of R.S. 40:1046(H)(8)(a) into
20 a separate account within the fund.
21 (d) The state treasurer shall deposit one-half of the monies attributable to the
22 proceeds of the fee assessed pursuant to the provisions of R.S. 40:1046(H)(8)(a) and
23 the proceeds of the taxes levied pursuant to R.S. 47:9105(A) and (B) into a separate
24 account within the fund.
25 * * *
26 C.(1) The legislature shall appropriate monies from the separate accounts of
27 the fund as follows:
28 * * *
29 (b) The account containing the monies attributable to one-half of the proceeds
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1 of the fee assessed pursuant to the provisions of R.S. 40:1046(H)(8)(a) shall be used
2 solely to provide funding for the Early Steps intervention program for infants and
3 toddlers with disabilities and their families as established in R.S. 28:461 et seq.
4 (c) The account containing the monies attributable to one-half of the proceeds
5 of the fee assessed pursuant to the provisions of R.S. 40:1046(H)(8)(a) and the
6 proceeds of the taxes levied pursuant to R.S. 47:9105(A) and (B) shall be used solely
7 to support and enhance developmental disabilities services within the Medicaid
8 program or the office for citizens with developmental disabilities, or its successor.
9 * * *
10 Section 2. R.S. 40:1046(H) and (L), 1046.2(A), the introductory paragraph of
11 1046.2(B), the introductory paragraph of 1046.2(B)(1), the introductory paragraph of
12 1046.2(B)(1)(a), 1046.2(B)(1)(b) through (e), and (B)(2)(a), (C)(1), the introductory
13 paragraph of 1046.2(C)(2), and 1046.2(C)(2)(a) and (c), the introductory paragraph of
14 1046.2(D), the introductory paragraph of 1046.2(D)(1), and 1046.2(D)(2), (4), and (5), the
15 introductory paragraph of 1046.2(E) and 1046.2(E)(1), the introductory paragraph of
16 1046.2(F), 1046.2(F)(1), the introductory paragraph of 1046.2(F)(2), and 1046.2(F)(2)(b)
17 and (3), (G), (H)(1) and (2) and the introductory paragraph of 1046.2(H)(3), and the
18 introductory paragraph of 1046.2(I), the introductory paragraph of 1046.2(I)(1), and
19 1046.2(I)(1)(a) and (b), (2), and (3), and 1046.4(A)(1) and (3) and (C)(1) and (2) are hereby
20 amended and reenacted to read as follows:
21 §1046. Recommendation and dispensing of marijuana for therapeutic use; rules and
22 regulations of the Louisiana Board of Pharmacy; production facility
23 licensing; permitting by the Louisiana Department of Health
24 * * *
25 H.(1)(a) The legislature hereby recognizes and declares that both the
26 Louisiana State University Agricultural Center and the Southern University
27 Agricultural Center timely exercised and asserted the intent of each university to be
28 licensed to produce recommended marijuana for therapeutic use in this state in
29 accordance with the provisions of Act No. 261 of the 2015 Regular Session of the
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1 Legislature of Louisiana.
2 (b) Each institution identified in Subparagraph (a) of this Paragraph,
3 respectively, shall select and contract with only one contractor authorized to produce
4 therapeutic marijuana in accordance with this Part. The selection process and
5 contracting provided for in this Subparagraph shall be done in accordance with all
6 applicable provisions of the Louisiana Procurement Code, R.S. 39:1551 et seq. Each
7 contractor and the university with which it contracts shall execute an agreement for
8 services. The Louisiana Department of Health shall issue no more than two
9 licenses to cultivate, extract, process, produce, and transport therapeutic
10 marijuana in this state. Each license shall be issued on July first and shall be
11 effective for a period of one year.
12 (b) The licenses issued on July 1, 2024, shall be to the entities who held
13 contracts with the Louisiana State University Agricultural Center and the
14 Southern University Agricultural Center on January 1, 2024, pursuant to Act
15 No. 261 of the 2015 Regular Session of the Legislature.
16 (c) Upon each renewal period, a license in force shall be renewed by the
17 department for the next succeeding period upon proper application for renewal
18 and payment of license fees as required by law and the rules and regulations of
19 the department.
20 (d) Subject to the limitation of no more than two licenses to cultivate,
21 extract, process, produce, and transport therapeutic marijuana in this state, the
22 department shall select a new licensee through a competitive bid process in
23 accordance with the applicable provisions of the Louisiana Procurement Code,
24 R.S. 39:1551 et seq., if any of the following occur:
25 (i) After written notice from the department and failure of the licensee
26 to cure within thirty days following receipt of written notice, a licensee fails to
27 comply with the proper application for renewal and payment of license fees as
28 required by law and the rules and regulations of the department, and the license
29 is revoked.
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1 (ii) A license is voluntarily returned or remitted to the department prior
2 to the expiration of the licensure period.
3 (2) The Louisiana Department of Health shall issue all of the following
4 annually:
5 (a) A nontransferable specialty license for the production of recommended
6 marijuana for therapeutic use, which the department shall issue only to the Louisiana
7 State University Agricultural Center and the Southern University Agricultural
8 Center.
9 (b) A permit to cultivate, extract, process, produce, and transport therapeutic
10 marijuana, which the department shall issue only to the sole contractor selected by
11 each university in accordance with Paragraph (1) of this Subsection.
12 (c) The Louisiana State University Agricultural Center, the Southern
13 University Agricultural Center, and the University of Louisiana at Monroe may
14 conduct research on marijuana for therapeutic use.
15 (d) On or before February first annually, the Louisiana State University
16 Agricultural Center, the Southern University Agricultural Center, and the University
17 of Louisiana at Monroe shall each submit to the Senate and House committees on
18 health and welfare a report which includes data and outcomes of any research
19 conducted pursuant to Subparagraph (c) of this Paragraph. No such report shall
20 include any proprietary information, intellectual property, or private financial data.
21 (3) Repealed by Acts 2022, No. 491, §1, eff. August 1, 2022.
22 (4) Repealed by Acts 2022, No. 491, §1, eff. August 1, 2022.
23 (5) Repealed by Acts 2022, No. 491, §1, eff. August 1, 2022.
24 (6)(a) The Louisiana Department of Health shall collect all of the following
25 information from each licensee:
26 (i) The amount of gross marijuana produced by the licensee during each
27 calendar year.
28 (ii) The details of all production costs including but not limited to seed,
29 fertilizer, labor, advisory services, construction, and irrigation.
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1 (iii) The details of any items or services for which the licensee subcontracted
2 and the costs of each subcontractor directly or indirectly working for the contractor
3 licensee.
4 (iv) The amount of therapeutic chemicals produced resulting from the
5 marijuana grown pursuant to this Section.
6 (v) The amounts paid each year to the licensee related to the licensee's
7 production of therapeutic marijuana pursuant to this Section.
8 (vi) The amount of therapeutic marijuana distributed to each pharmacy
9 licensed to dispense therapeutic marijuana in this state during each calendar year.
10 (b) The Louisiana Department of Health shall provide the information
11 collected as required by this Paragraph for the previous calendar year in the form of
12 a written report to the legislature no later than February first of each year. The
13 department shall also make a copy of the report required by this Subparagraph
14 available to the public on the internet.
15 (7)(3) No company that has made a contribution to a candidate in a Louisiana
16 election governed by the provisions of the Campaign Finance Disclosure Act within
17 the five years prior to bidding for the license, or is controlled wholly or in part by a
18 person who made such a contribution within the five years prior to the company
19 bidding for the license, may be eligible for the license.
20 (8)(a)(4) The Louisiana Department of Health department shall perform the
21 following:
22 (i)(a) Establish and collect an annual license fee of one hundred thousand
23 dollars from each contractor licensee permitted to cultivate, extract, process,
24 produce, and transport therapeutic marijuana.
25 (ii)(b) Collect a nonrefundable application fee of ten thousand dollars.
26 (iii)(c) Assess a fee of seven percent of the gross sales of therapeutic
27 marijuana. The fee shall be reported and paid by the licensed production facility or
28 permitted contractor that sells therapeutic marijuana to marijuana pharmacies
29 licensee. The fee shall be collected by the Department of Revenue and shall be
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1 subject to the provisions of Chapter 18 of Subtitle II of Title 47 of the Louisiana
2 Revised Statutes of 1950 as amended. Notwithstanding the provisions of
3 Subparagraph (b) of this Paragraph, the The Department of Revenue shall transfer
4 any monies collected in accordance with this Item monthly to the state treasury
5 deposit into the Disability Services Fund, as established in R.S. 28:826, the amount
6 of revenues collected in accordance with this Item. on a monthly basis. The
7 treasurer shall allocate the monies as follows:
8 (i) One percent shall be allocated to the Louisiana State University
9 Agricultural Center.
10 (ii) One percent shall be allocated to the Southern University
11 Agricultural Center.
12 (iii) Five percent shall be allocated to the Department of Public Safety
13 and Corrections, office of state police.
14 An amount shall be allocated to the department, pursuant to legislative appropriation,
15 for regulatory, administrative, investigative, enforcement, legal, and other such
16 expenses as may be necessary to carry out the provisions of this Chapter and for
17 activities associated with the enforcement of law and regulations governing the
18 therapeutic marijuana program.
19 (b) All fees collected by the department shall be used to fund the expenses
20 relating to the regulation and control of therapeutic marijuana.
21 (5) The department shall promulgate rules and regulations as necessary
22 to implement the provisions of this Subsection.
23 * * *
24 L. The provisions of this Section shall terminate on January 1, 2025 July 1,
25 2030.
26 * * *
27 §1046.2. Contractors; selection; Licensees; minimum standards
28 A. The contractor selected by the licensed university through a competitive
29 bid process licensee to cultivate, extract, process, produce, and transport therapeutic
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1 marijuana shall be subject to oversight and inspections by the Louisiana Department
2 of Health as provided in this Section.
3 B. Initial inspections of contractor facilities shall be conducted in accordance
4 with the following procedures and requirements:
5 (1) Prior to commencement of operations, the Louisiana Department of
6 Health shall conduct an initial inspection of the contractor's facility, limited strictly
7 to a determination of the following:
8 (a) That the contractor facility adheres to all of the following:
9 * * *
10 (b) That the contractor licensee possesses and maintains accurate, detailed
11 plans and elevation drawings of all operational areas involved with the cultivation,
12 extraction, processing, and production of therapeutic marijuana.
13 (c) That the contractor licensee possesses and maintains a written operations
14 plan, which shall be limited to standard operating procedures for the cultivation of
15 marijuana in each facility production area, instructions for making each product
16 produced on the premises, equipment operations manuals, procedures for conducting
17 necessary safety checks, sanitization procedures for working surfaces and equipment,
18 quality control procedures, and emergency preparedness procedures.
19 (d) That the contractor licensee has connection and access to the Louisiana
20 Medical Marijuana Tracking System, hereafter referred to in this Section as
21 LMMTS.
22 (e) That the contractor licensee has security against unauthorized entry via
23 the presence of operational alarm and video surveillance systems, limited access
24 areas, secure locking systems, and door controls throughout the facility.
25 * * *
26 (2)(a) Notwithstanding Paragraph (1) of this Subsection, nothing in this
27 Section shall be construed to obstruct or impede the lawful activity of any licensee
28 or permittee.
29 * * *
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1 C.(1) Inspections of contractor facilities other than initial inspections shall
2 be conducted in accordance with the procedures and requirements provided in
3 Paragraph (2) of this Subsection.
4 (2) After a contractor licensee commences producing therapeutic marijuana
5 in an approved facility, the Louisiana Department of Health shall inspect each
6 contractor facility at least twice annually to verify the existence or accuracy of the
7 following:
8 (a) Possession and accuracy of detailed plans and elevation drawings of all
9 operational areas involved with the cultivation, extraction, processing, and
10 production of medical therapeutic marijuana.
11 * * *
12 (c) Connection and accessibility to the Louisiana Medical Marijuana
13 Tracking System LMMTS.
14 * * *
15 D. All of the following standards and requirements for security shall apply
16 with respect to contractor facilities:
17 (1) Any contractor facility alarm or surveillance system shall include the
18 following:
19 * * *
20 (2) Each contractor facility shall maintain on-site security personnel, at a
21 minimum, during standard United States business hours of eight o'clock a.m. to five
22 o'clock p.m. and shall maintain off-site, electronic security monitoring at all other
23 times.
24 * * *
25 (4) Each contractor licensee shall limit access to and post limited-access
26 signage where marijuana is cultivated, extracted, processed, produced, or stored.
27 Limited access areas shall remain locked and accessible only by authorized
28 personnel.
29 (5) Each employee, supervisor, or agent of each contractor licensee shall
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1 keep a current identification card, in a form approved by the department, on his
2 person when present at a contractor facility.
3 E. All of the following procedures, restrictions, and authorizations shall apply
4 relative to visitors at contractor facilities:
5 (1) Persons who do not possess a contractor licensee identification card shall
6 be issued a visitor identification badge after signing a log maintained by the
7 contractor licensee that properly identifies the visitor to the premises. The visitor
8 shall wear the badge for the duration of his time on the premises, and the visitor shall
9 not be left unaccompanied in any area where marijuana or marijuana products are
10 present.
11 * * *
12 F. All of the following requirements shall apply with respect to data
13 management by contractors licensees:
14 (1) Each contractor licensee shall acquire and maintain all software,
15 hardware, and communications infrastructure necessary to ensure connectivity to and
16 implementation of the Louisiana Medical Marijuana Tracking System, referred to
17 hereafter in this Subsection as the LMMTS, to track therapeutic marijuana from seed
18 to distribution to an approved laboratory, to licensed pharmacies, to another
19 cultivation contractor licensee or to destruction, tagging each plant and product with
20 a unique identification number, and entering the number into the LMMTS for
21 tracking. The contractor licensee shall bear the cost of all expenses related to
22 tracking, tagging, and implementation of the LMMTS.
23 (2) Within twenty-four hours of the respective qualifying event, the
24 contractor licensee shall record the following in the LMMTS:
25 * * *
26 (b) The sale, transfer, or transport of therapeutic marijuana or its derivatives
27 to another contractor licensee, approved laboratory, or therapeutic marijuana
28 pharmacy.
29 * * *
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1 (3) Notwithstanding any other provision of this Section, each contractor
2 licensee shall keep all documents and information required by this Part for at least
3 the current year and the three preceding calendar years, including but not limited to
4 business records necessary to fully account for each business transaction conducted
5 by the contractor licensee.
6 G. All of the following standards and requirements shall apply to contractors'
7 the licensees' inventory:
8 (1) Each contractor licensee shall maintain a comprehensive inventory of all
9 marijuana, including without limitation usable marijuana available for dispensing,
10 mature marijuana plants, and seedlings at each authorized location. Following an
11 initial inventory, all marijuana shall be inventoried on a weekly basis.
12 (2) Any therapeutic marijuana waste product shall be properly weighed and
13 recorded in the Louisiana Medical Marijuana Tracking System LMMTS and stored
14 in a limited access area of a contractor facility until rendered unusable.
15 H. Material safety data sheet requirements shall include all of the following:
16 (1) Any pesticides or chemicals used by a contractor licensee in the
17 production of therapeutic marijuana shall be used and stored according to the
18 contractor's licensee's written operations plan.
19 (2) Each contractor licensee shall maintain a material safety data sheet in
20 each facility area where toxic cleaning compounds, sanitizing agents, solvents used
21 in the production of therapeutic marijuana extracts and concentrates, pesticide
22 chemicals, or other agricultural chemicals are used or stored.
23 (3) Each contractor licensee shall record the following information when
24 applying a pesticide or other agricultural chemical to therapeutic marijuana at any
25 cultivation stage:
26 * * *
27 I. All of the following requirements shall apply to transportation of
28 therapeutic marijuana by contractors licensees:
29 (1) Prior to transporting therapeutic marijuana, a contractor licensee shall
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1 generate an inventory manifest in the Louisiana Medical Marijuana Tracking
2 System, referred to hereafter in this Subsection as the LMMTS, including all of the
3 following information:
4 (a) The name of the contractor licensee originating the transport.
5 (b) The name of the contractor licensee, approved laboratory, or licensed
6 pharmacy receiving the transport.
7 * * *
8 (2) The contractor licensee originating the transport shall provide the
9 contractor, approved laboratory, or licensed pharmacy receiving the transport with
10 a copy of the LMMTS inventory manifest, which shall not be altered after departing
11 the originating contractor's licensee's facility.
12 (3) The contractor licensee, approved laboratory, or licensed pharmacy
13 receiving the transport shall record the quantities of all therapeutic marijuana
14 products in the LMMTS. However, any contractor licensee, approved laboratory, or
15 licensed pharmacy receiving a therapeutic marijuana transport shall refuse the
16 transport if it is not accompanied by an unaltered LMMTS inventory manifest.
17 * * *
18 §1046.4. Testing; sample collection; minimum standards; reporting; remediation
19 A.(1) Each contractor permitted licensee authorized to cultivate, extract,
20 process, produce, and transport therapeutic marijuana pursuant to this Part shall
21 comply with approved minimum standards by making each batch of therapeutic
22 marijuana subject to random selection, sampling, and analysis conducted by an
23 independent approved laboratory collector in a volume sufficient to ensure
24 compliance.
25 * * *
26 (3) The laboratory shall record test results in the Louisiana Medical
27 Marijuana Tracking System and produce a certificate of analysis to be delivered to
28 the Louisiana Department of Health and contractor licensee permitted to cultivate,
29 extract, process, produce, and transport therapeutic marijuana within twenty-four
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1 hours of test completion.
2 * * *
3 C.(1) Neither a contractor licensee nor an approved laboratory authorized
4 pursuant to this Part shall release or approve a therapeutic marijuana product for
5 delivery or sale until a sample from the applicable product batch has complied with
6 all required testing standards.
7 (2) A contractor licensee may resubmit to an approved laboratory any sample
8 that fails one or more initial tests required by this Part. The sample may be released
9 for delivery and sale only if it passes all tests conducted by an approved laboratory
10 in duplicate. The sample may be remediated according to any reasonably acceptable
11 industry methods if it fails one or more tests conducted by an approved laboratory.
12 * * *
13 Section 3. The existing agreements between the Louisiana State University
14 Agricultural Center and Southern University Agricultural Center and the contractors selected
15 to cultivate, extract, process, produce, and transport therapeutic marijuana shall terminate
16 on July 1, 2024.
17 Section 4. This Act shall become effective upon signature by the governor or, if not
18 signed by the governor, upon expiration of the time for bills to become law without signature
19 by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If
20 vetoed by the governor and subsequently approved by the legislature, this Act shall become
21 effective on the day following such approval.
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Amanda Trapp.
DIGEST
SB 228 Engrossed 2024 Regular Session McMath
Present law identifies the Louisiana State University Agricultural Center and the Southern
University Agricultural Center as the licensed producers of marijuana for therapeutic use in
the state.
Present law authorizes each university to contract with one contractor to produce therapeutic
marijuana.
Proposed law removes the universities as the licensees and transfers the licenses to the two
contractors who had contracts with the universities on January 1, 2024.
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Proposed law establishes procedures for the Louisiana Department of Health to renew or
revoke the licenses.
Present law establishes a sunset provision for the therapeutic marijuana program to terminate
on January 1, 2025.
Proposed law extends the termination date to July 1, 2030.
Present law establishes a seven percent fee collected from the gross sales of therapeutic
marijuana and provides for the dedication of the funds collected from the fee.
Proposed law changes the dedication of the funds.
Effective upon signature of the governor or lapse of time for gubernatorial action.
(Amends R.S. 28:826(B)(1) and (2)(c) and (C)(1)(b) and R.S. 40:1046(H) and (L),
1046.2(A), 1046.2(B)(intro para), 1046.2(B)(1)(intro para), 1046.2(B)(1)(a)(intro para),
1046.2(B)(1)(b) through (e), and (B)(2)(a), (C)(1),1046.2(C)(2)(intro para), and
1046.2(C)(2)(a) and (c), 1046.2(D)(intro para), 1046.2(D)(1)(intro para), and 1046.2(D)(2),
(4), and (5), 1046.2(E) and 1046.2(E)(1), 1046.2(F)(intro para), 1046.2(F)(1), the
1046.2(F)(2)(intro para), and 1046.2(F)(2)(b) and (3), (G), (H)(1) and (2) and
1046.2(H)(3)(intro para), and 1046.2(I)(intro para), 1046.2(I)(1)(intro para), and
1046.2(I)(1)(a) and (b), (2), and (3), and 1046.4(A)(1) and (3) and (C)(1) and (2); repeals
R.S. 28:826(B)(2)(d) and (C)(1)(c))
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Health and Welfare to
the original bill
1. Removes the LSU Ag Center and Southern Ag Center as the two therapeutic
marijuana licensees and transfers the licenses to the current contractors,
effective July 1, 2024.
2. Provides for procedures for the Louisiana Department of Health to renew or
revoke the licenses.
3. Changes the allocation of funds collected from the 7% fee collected on the
gross sale of therapeutic marijuana.
4. Makes technical changes.
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