House Bill No. by Representative Newell establishes the "Adult-Use Cannabis Pilot Program Regulation and Enforcement Act" in Louisiana, which aims to create a temporary pilot program to assess the feasibility of a permanent adult-use cannabis program. The pilot program is scheduled to begin on January 1, 2027, and will conclude on July 1, 2030. It is designed to evaluate the practicality of a permanent program, identify potential challenges and risks, gather real-time feedback, and analyze outcomes to inform future legislative decisions. The bill grants regulatory authority to the Louisiana Department of Health (LDH) over various aspects of adult-use cannabis, including cultivation, processing, and retail sales, while restricting sales to existing therapeutic marijuana retailers who must notify LDH of their intent to participate.

Additionally, the bill amends existing law to clarify that the sales tax exemption for therapeutic marijuana does not extend to adult-use cannabis sales. The legislation introduces a reduced fee of 3.5% on gross sales of both therapeutic and adult-use marijuana during the pilot program, down from the current 7% fee on therapeutic marijuana sales. Retail permit holders are required to identify their retail locations by a specified deadline, and those who opt out of the pilot program will be barred from participation for its duration but can continue serving qualified patients with therapeutic marijuana. The fees collected will be directed to the state treasury for the Disability Services Fund.

Statutes affected:
HB373 Original: 47:2(B)(11)