House Bill No. by Representative Echols proposes an increase in the excise tax on consumable hemp products from 3% to 20% of the retail sales price. The bill also outlines the allocation of the revenues generated from this tax, which will be distributed as follows: 15% to the Louisiana Early Childhood Education Fund, 30% to the Criminal Justice and First Responder Fund, 30% to the Drug Abuse Education and Treatment Dedicated Fund Account, and 25% to a newly established Consumable Hemp Testing and Regulation Fund. This new fund will support the operations of university-affiliated laboratories that test consumable hemp products, with provisions for alternative uses of the funds if no such laboratories are operational.

Additionally, the bill amends existing laws to include provisions for the creation and management of the Consumable Hemp Testing and Regulation Fund, ensuring that any unspent funds remain available for future use. The effective date for these changes is set for July 1, 2025, applying to taxable periods beginning on or after that date. The bill aims to enhance the regulation and testing of consumable hemp products while generating revenue for various state funds.

Statutes affected:
HB235 Original: 15:1224(A), 47:1693(A)