Cannabis Legalization in Louisiana

On June 30, 2015, Governor Bobby Jindal signed HB 149, which sets the framework for the dispensing of marijuana for medical purposes. On August 6, 2019, medical marijuana became available for sale in the state for the first time, provided by cannabis grower GB Sciences.

Louisiana does not issue medical marijuana cards to patients; the only requirement is a doctor’s recommendation sent to the patient’s local dispensary. HB 819 (2020) allows any licensed physician in good standing with the state to recommend cannabis product for any condition that the physician “considers debilitating to an individual patient” and that the physician “is qualified through [their] medical education and training to treat.” The bill also allows dispensaries to deliver products to patients’ homes.

From January 2022, the law also allows the purchase of raw cannabis flower through dispensaries. Possession of up to 2.5 ounces of cannabis flower is legal for medical purposes. The Louisiana Department of Health defines several acceptable forms of medical marijuana that include flower, oils, extracts, tinctures, sprays, capsules, pills, solutions, suspensions, gelatin-based chewables, lotions, transdermal patches, suppositories, and metered-dose inhalation.

On June 6, 2022, Governor John Bel Edwards signed Act 491, expanding dispensary access by allowing existing dispensaries to open an additional dispensary in their respective region if they meet the 3,500-customer requirement. As of March 2024, each of the eight regions has one dispensary, and New Orleans region has two.

Cannabis Licenses

There are currently 2 licensed producers and 10 licensed dispensaries in the state.

“Production Facility” means a facility operating under a license issued by the Department of Agriculture and Forestry to grow and process cannabis, manufacture cannabis products, package and label cannabis products, and sell cannabis to licensed retailers. In 2022, HB 697 transferred regulation of the industry to the Louisiana Department of Health from the state Department of Agriculture and Forestry.

Since Louisiana launched its medical marijuana program in 2015, the law has required only Louisiana State University and Southern University to have cultivation licenses. The universities have partnered with Good Day Farm and Ilera Holistic Healthcare respectively to establish their growing operations. Under SB 228 (2024), Good Day Farm and Ilera would gain ownership of the licenses and be able to renew them annually. No other companies would be permitted to apply for the licenses unless one of the two firms relinquishes theirs.

“Retailer” means an entity licensed by the Office of Alcohol and Tobacco Control pursuant to R.S. 26:943 for the purchase of cannabis products from licensed production facilities and the sale of cannabis products to the consumer. One medical marijuana pharmacy regulated by the Louisiana Board of Pharmacy is authorized to operate in each of the nine regions of the state established by the Louisiana Department of Health. A pharmacy with HB 697 is eligible to open an additional dispensary in the same geographic region once it serves 3,500 enrolled patients, and a second satellite location once the next milestone of 3,500 patients is reached. There were about 35,000 patients in Louisiana in the second quarter of 2022, about three times more than in the second quarter of 2021, The Times-Picayune reported. In March 2024, the 10th pharmacy opened in Crescent City, located in Kenner, a suburb of New Orleans.

Application and license fees:

• The application fee for a medical cannabis license in Louisiana cannot exceed $2,500.
• The annual license renewal fee for a medical cannabis license cannot exceed $100,000.

Cannabis Delivery in Louisiana

Under HB 697 (2022), each marijuana pharmacy shall offer home delivery to patients in each zip code within its region at least once per month.

Cannabis Taxes and Sales

The 7% fee must be reported to and paid by a licensed production facility or permitted contractor that sells therapeutic marijuana to marijuana pharmacies. There is also a tax of $3.50 per gram of marijuana or per gram serving that must be paid by marijuana retailers that sells therapeutic marijuana to consumers. The fees are collected by the Department of Revenue and directed to the Community and Family Support System Fund.

Since 2019, medical marijuana operators in Louisiana are exempt from 280E under state tax law. The state-level exemption does not affect the federal taxes owed by marijuana companies.

280E Deductions

The 2020 MJBiz Factbook estimated sales to be between $15 million and $20 million, and the 2022 MJBiz Factbook’s forecasts doubled the sales estimate from the previous year to $90 million to $100 million. Louisiana collected $993,000 in tax revenue from marijuana sales in 2023, up 61.2% from $616,000 in 2022, according to the Louisiana Department of Revenue.

Louisiana Cannabis Market Infographics

Louisiana Hemp Industry