LEGISLATIVE FISCAL OFFICE
Fiscal Note
Fiscal Note On: HB 649 HLS 24RS 806
Bill Text Version: ORIGINAL
Opp. Chamb. Action:
Proposed Amd.:
Sub. Bill For.:
Date: March 14, 2024 2:11 PM Author: NEWELL
Dept./Agy.: Secretary of State/
Subject: Decriminalization of Marijuana - Proposition Election Analyst: Daniel Druilhet
CONTROLLED SUBSTANCES OR DECREASE GF EX See Note Page 1 of 2
Provides for a proposition election regarding the legalization of marijuana
Current law lists marijuana, tetrahydrocannabinols (THC) and chemical derivatives of THC as Schedule I substances under
the Uniform Controlled Dangerous Substances Law. Current law imposes different penalties for the crime of distribution and
possession with intent to distribute marijuana, THC, and derivatives of THC. Proposed law removes criminal penalties
associated with the possession, distribution, or dispensing, or possession with intent to distribute or dispense marijuana for
those over the age of 21; removes marijuana, THC, and chemical derivatives of THC as Schedule I substances under the
Uniform Controlled Dangerous Substances Law, and only becomes effective contingent upon an affirmative vote of a
majority of qualified electors of the state relative to a ballot proposition to be included in the 11/05/24 statewide general
election, which is to appear on the ballot in every parish.
EXPENDITURES 2024-25 2025-26 2026-27 2027-28 2028-29 5 -YEAR TOTAL
State Gen. Fd. DECREASE DECREASE DECREASE DECREASE DECREASE
Agy. Self-Gen. $0 $0 $0 $0 $0 $0
Ded./Other $0 $0 $0 $0 $0 $0
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds $0 $0 $0 $0 $0 $0
Annual Total
REVENUES 2024-25 2025-26 2026-27 2027-28 2028-29 5 -YEAR TOTAL
State Gen. Fd. $0 $0 $0 $0 $0 $0
Agy. Self-Gen. DECREASE DECREASE DECREASE DECREASE DECREASE
Ded./Other $0 $0 $0 $0 $0 $0
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds DECREASE DECREASE DECREASE DECREASE DECREASE
Annual Total
EXPENDITURE EXPLANATION
Proposed law will likely result in an indeterminable, but significant, net decrease in SGF expenditures. The Department of Public Safety
and Corrections – Corrections Services (DPSC – CS) will experience a decrease in SGF expenditures if marijuana, THC, and derivatives of
THC are removed as Schedule I substances and criminal penalties are removed for possessing, distributing, dispensing, or possessing with
intent to distribute or dispense marijuana, THC, and chemical derivatives of THC for those over the age of 21. Alternatively, the
Department of Public Safety and Corrections - Public Safety (DPS&C - PS) will experience an increase in SGF expenditures if marijuana,
THC, and THC derivatives are removed as Schedule I substances and criminal penalties are removed for possessing, distributing,
dispensing, or possessing with intent to distribute or dispense marijuana, THC, and chemical derivatives of THC for those over the age of
21(see Page 2).
DPSC – CS reports that in 2023, there were 843 admissions for these crimes, with an average sentence length imposed of 4.7 years.
Proposed law will result in an annual savings of approximately $37.2 M in SGF for offenders housed at local facilities ($26.39 per day per
offender x 365 days x 843 admissions). The exact fiscal impact is indeterminable because there is no indication of whether proposed law
will apply retroactively to offenders already incarcerated for distribution and possession with intent to distribute marijuana.
CONTINUED ON PAGE 2
REVENUE EXPLANATION
Proposed law will result in an indeterminable decrease in local funds revenue as a result of a loss of potential fines upon removal of
criminal penalties contingent upon the legislature providing for a statutory regulatory system for the legal sale and distribution of
marijuana.
Louisiana Board of the Public Defender
Proposed law will result in an indeterminable decrease in Conviction and User Fees (CUFs) for local offices of the public defender,
specifically the $40 application fee for services as well as a $45 special court cost if an offender is convicted or makes a nolo contendere
plea. However, due to the infrequency with which these fees are collected from indigent persons, it is indeterminable whether the passage
of this legislation would result in a decrease in local funding.
Louisiana Department of Revenue
Proposed law will result in a minor decrease in tax collections, specifically the reduction in taxes imposed on dealers of marijuana by La. R.
S. 47:2601, which for the last five years has been $30,929. Whether proposed law will result in any additional revenues is contingent
upon enactment of legislation providing for a statutory regulatory system and establishment of a sales tax for marijuana. Passage of the
proposed law would not result in a significant revenue impact.
Senate Dual Referral Rules House
13.5.1 >= $100,000 Annual Fiscal Cost {S & H} 6.8(F)(1) >= $100,000 SGF Fiscal Cost {H & S}
Patrice Thomas
13.5.2 >= $500,000 Annual Tax or Fee 6.8(G) >= $500,000 Tax or Fee Increase
Change {S & H} or a Net Fee Decrease {S} Deputy Fiscal Officer
 LEGISLATIVE FISCAL OFFICE
Fiscal Note
Fiscal Note On: HB 649 HLS 24RS 806
Bill Text Version: ORIGINAL
Opp. Chamb. Action:
Proposed Amd.:
Sub. Bill For.:
Date: March 14, 2024 2:11 PM Author: NEWELL
Dept./Agy.: Secretary of State/
Subject: Decriminalization of Marijuana - Proposition Election Analyst: Daniel Druilhet
CONTINUED EXPLANATION from page one: Page 2 of 2
[CONTINUED FROM PAGE 1 - EXPENDITURES]
DPSC (Public Safety)
Proposed law will result in an increase in SGF expenditures for the Department of Public Safety and Corrections - Public Safety, based on
the experience of other states that have decriminalized recreational marijuana. Public Safety anticipates decriminalizing marijuana will
have an indirect impact on lab expenses associated with a projected increase in the number of blood samples tested through toxicology
analysis for impaired drivers for THC and testing components of products found at illegal marijuana manufacturers and retailers. The
additional 1,000 blood samples that Public Safety anticipates that it will test under proposed law are connected to estimates derived from
studies of states which have already legalized cannabis and experienced an increase in the number of cannabis-related DUI citations
issued.
The Louisiana State Police, along with many Sheriffs Offices and police departments, are a part of federal task forces, for which the
Louisiana State Police Crime Lab (LSPCL) performs testing. Any existing testing of blood samples related to criminal purposes will not be
eliminated, and testing of narcotics will still be required if an offender is accused of other crimes, such as driving while intoxicated. The
current cost for a toxicology analysis on a blood sample is $912, so with an additional 1,000 blood samples tested, there will likely be an
increased operating cost of $912,000 (1,000 x $912 = $912,000).
Public Safety estimates that it would require 4 Crime Lab Analyst positions ($424,337) and lab equipment ($1.24 M) to handle the influx of
samples tested by the LSPCL under proposed law. Approximately 20 cases are assigned to each analyst, each month. The LSPCL, which
services over 200 agencies, is currently assigned a number of cases that nearly exceeds its capacity to test. In 2023, there were 7 fully
trained toxicology analysts working in the LSPCL, and three that were in training. The Louisiana State Police reports that in 2022, 1,720
toxicology reports were completed, of which 1,520 were blood toxicology reports. The five-year average of tests completed between 2018
and 2022 is 2,500. With 20 cases assigned to each analyst each month, the number of samples tested by the LSPCL (1,720) slightly
exceeded the number of completed toxicology tests expected in 2022 - 1,680 (7 analysts x 20 cases per month x 12 months). For an
additional 1,000 tests estimated with passage of proposed law, if each of the 4 crime lab analysts were assigned 20 toxicology blood
samples to test per month, over the course of one year, 960 blood samples could be tested (4 analysts x 20 cases per month x 12
months). This is near the projected workload expected to be assumed with the proposed law (1,000 additional blood samples).
Additional equipment will also be needed to handle an increased number of samples tested, including two new mass spectrometers
($810,900), extraction and quant equipment ($273,217), annual contracts for mass spectrometer service ($50,000) and Stericycle
Biohazard Disposal ($17,912), flasks, pipettes, dispensers and software ($42,000), and gas, filaments, and other consumables for
validation ($41,726). The LSPCL advises that the request for additional equipment is to ensure that a backlog of testing is not created,
and that with assuming additional testing, it will still have the ability to maintain a turnaround time of less than 30 days when conducting
tests.
Considering personnel requests, along with operating and equipment costs, proposed law will result in an increase of $2.6 million in SGF
expenditures in the Louisiana State Police Crime Lab in the first year.
Louisiana Board of the Public Defender
Proposed law will result in an indeterminable decrease in SGF expenditures for the Louisiana Board of the Public Defender (LBPD) to the
extent that it reduces workload associated with defense for cases involving distribution or possession of marijuana. LPDB reports that in
2023, the public defender system represented individuals in 4,323 cases in which either distribution or possession of marijuana was the
dominant charge (or 1.8% of all raw case numbers in the public defender system). Proposed law would redirect attorney workload
associated with representing individuals charged with either manufacturing, distribution, dispensing or possession with intent to distribute
marijuana.
Louisiana Department of Revenue
Whether proposed law will result in any additional expenditures is contingent upon enactment of legislation providing for a statutory
regulatory system and establishment of a sales tax for marijuana.
Local District Attorney Offices (DAA)
Proposed law will result in an indeterminable decrease in local expenditures of District Attorney’s offices, with a fewer numbers of cases to
be prosecuted, but the DAA is unable to predict the number of future prosecutions.
Secretary of State
The proposed ballot proposition may result in a minimal increase in programing costs for the Department of State to update voting
machines for statewide judicial elections and can likely be absorbed within the department’s existing operating budget.
The Department of State may incur minimal ballot processing costs associated with this measure. As a regular practice, the Department of
State typically budgets for up to 10 constitutional amendments and statewide propositions for the fall statewide elections. To the extent
the ballot includes more than 10 constitutional amendments and statewide propositions, the Department of State may require additional
SGF resources for the November 5, 2024, statewide election. Any expenditure impact would be realized in FY 25.
Senate Dual Referral Rules House
13.5.1 >= $100,000 Annual Fiscal Cost {S & H} 6.8(F)(1) >= $100,000 SGF Fiscal Cost {H & S}
Patrice Thomas
13.5.2 >= $500,000 Annual Tax or Fee 6.8(G) >= $500,000 Tax or Fee Increase
Change {S & H} or a Net Fee Decrease {S} Deputy Fiscal Officer


Statutes affected:
HB649 Original: 40:966(B)(2), 40:964(S, 40:966(D)(1)