House Bill No. by Representative Echols proposes significant changes to the excise tax on consumable hemp products in Louisiana. The bill increases the tax rate from 3% to 20% of the retail sales price of these products. Additionally, it reallocates the revenues generated from this tax, with 15% going 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.

The bill also creates the Consumable Hemp Testing and Regulation Fund, which will be used to support the operations of a university-affiliated laboratory in Louisiana that tests consumable hemp products. If no such laboratory is operational and approved by the Louisiana Department of Health, the funds will support any approved laboratory or the department's regulatory activities related to consumable hemp. The provisions of this bill will take effect on July 1, 2025, and will apply to taxable periods beginning on that date.

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