LEGISLATIVE FISCAL OFFICE
Fiscal Note
Fiscal Note On: HB 24 HLS 23RS 258
Bill Text Version: ORIGINAL
Opp. Chamb. Action:
Proposed Amd.:
Sub. Bill For.: REVISED
Date: April 24, 2023 4:27 PM Author: NEWELL
Dept./Agy.: Corrections and Revenue
Subject: Decriminalization of Marijuana; Sale & Taxation of Marijuana Analyst: Daniel Druilhet
CONTROLLED SUBSTANCES OR DECREASE GF EX See Note Page 1 of 2
Provides for the decriminalization of marijuana possession and distribution
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. Proposed law removes marijuana, THC, and chemical derivatives of THC as
Schedule I substances under the Uniform Controlled Dangerous Substances Law. Proposed law has the effect of
decriminalizing marijuana and only becomes effective upon legislative enactment of a statutory regulatory system and
establishment of a sales tax for marijuana.
EXPENDITURES 2023-24 2024-25 2025-26 2026-27 2027-28 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 2023-24 2024-25 2025-26 2026-27 2027-28 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. 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 (see Page 2).
DPSC – CS reports that in the past two years, there has been an average of 871 admissions for these crimes, with an
average sentence length imposed of 5 years. Proposed law will result in an annual savings of approximately $8.4 M in SGF
for offenders housed at local facilities ($26.39 per day per offender x 365 days x 871 admissions) or annual savings of
approximately $32.4 M if housed in a state facility ($101.76 per day per offender x 365 days x 871 admissions). The exact
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}
Evan Brasseaux
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} Interim Deputy Fiscal Officer
 LEGISLATIVE FISCAL OFFICE
Fiscal Note
Fiscal Note On: HB 24 HLS 23RS 258
Bill Text Version: ORIGINAL
Opp. Chamb. Action:
Proposed Amd.:
Sub. Bill For.: REVISED
Date: April 24, 2023 4:27 PM Author: NEWELL
Dept./Agy.: Corrections and Revenue
Subject: Decriminalization of Marijuana; Sale & Taxation of Marijuana Analyst: Daniel Druilhet
CONTINUED EXPLANATION from page one: Page 2 of 2
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.
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 $1,168, so with an
additional 1,000 blood samples tested, there will likely be an increased operating cost of $1,168,000 (1,000 x $1,168 =
$1,168,000).
Public Safety also estimates that it will require 4 Crime Lab Analyst positions ($356,357) and lab equipment ($1.09 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. There are currently 7 fully trained toxicology analysts working in the LSPCL, and three that are still 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
contract ($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 $2.7
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. LBPD reports that in 2022, the public defender system represented individuals in 5,620 cases in which either
distribution or possession of marijuana was the dominant charge (or 2.35% of all new 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.
Office of Juvenile Justice
Proposed law will result in a decrease in the number of youth adjudicated with a disposition to the custody of the Office of
Juvenile Justice (OJJ) and a decrease in SGF expenditures for housing of juveniles in secure care facilities. OJJ reports that
the number of youth adjudicated for marijuana-related offenses constitutes 2.26% served with 73.8% of the 2.26%
sentenced to probation. Currently, juveniles in the custody of OJJ for marijuana related offenses represent 1.9% of all youth
served in custody (or five juveniles). The pending secure care rate for juveniles placed in secure care facilities is $122.21
per day per youth, which annually would result in savings of $$44,606 per youth.
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}
Evan Brasseaux
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} Interim Deputy Fiscal Officer


Statutes affected:
HB24 Original: 40:966(B)(2), 40:964(S, 40:966(C)(2)