Since 2015, Louisiana State University (LSU) and Southern University (SU) are the only two public institutions in Louisiana that can legally cultivate medical cannabis. However, if Senate Bill 228 is signed into law, it would allow private contractors to take their place instead.

“They are the only two higher education systems in the country that are in the pot business right now, and it is my belief that it’s time we get them out of that business and let them focus on higher education,” said Sen. Patrick McMath, who is also the sponsor of the bill, told the Louisiana Illuminator.

Apparently, LSU and SU received help from two private growers, Good Day Farm and Ilera Holistic Healthcare, to get their own respective farms operational. If the bill becomes law, LSU and SU would transfer their respective cultivator licenses over to Good Day Farm and Ilera Holistic Healthcare, both of which will be permitted to hold on to their licenses for as long as they choose to renew them. As a result, no other cultivators would be allowed to apply for a license.

According to Louisiana Illuminator, Good Day Farm in particular has a relationship with legislators who may be attempting to control all cultivation within the state. Good Day Farm’s primary shareholder is Donald “Boysie” Bollinger, one of the richest people in the state, and company president John Davis’ wife, Paula Davis, is a House representative.

One of the key people who helped develop legislation for Louisiana’s medical cannabis law, former Rep. Joe Marino, told the news outlet that doing so would create a monopoly on cultivation. 

During his time in office, Marino introduced legislation to expand the number of cultivation licenses available for application, although it didn’t pass. In 2022, he also worked to expand the number of cannabis pharmacies, from 10 to 25, which was signed by former Gov. John Bel Edwards.

In March, McMath attended a committee hearing for SB-228, and claimed that the Louisiana medical cannabis industry was always meant to be private. He explained that including both LSU and SU was a late-hour floor amendment. “It was never really their intention to be put into this bill,” McMath said.

An earlier draft of SB-228 would have still provided a percentage of gross sales from Good Day Farms and Ilera Holistic Healthcare to the universities, but that has since been removed.

SB-228 was sent to Gov. Jeff Landry on May 16 for a signature or veto.

There has been plenty of other cannabis legislation introduced in the most recent legislative session. The Louisiana legislature initially legalized hemp-based edibles containing delta-9-THC back in 2022, with the knowledge presented by former House Speaker Clay Schexnayder who said it would require a person to consume “tractor-trailer loads” for a person to get high from it. Senate Bill 237 attempts to limit the law, and would make it illegal to sell or manufacture any cannabis products containing THC unless it’s included in a license medical cannabis product. During a committee hearing on May 14, many business owners claimed that such a bill would eliminate the consumable hemp industry that has been built so far, as well as any jobs that have developed from its success.

Louisiana Hemp Extractors owner Paige Melancon expressed his frustration about spending the last two years building up his business. “I feel like I’m being fired right now and I want you guys to come with me and fire my employees when we leave here, if you choose to do that,” Melancon said.

Supporters of SB-237 such as lobbyist Gene Mills, president Louisiana Family Forum, also spoke about putting an end to consumable hemp products. “Our vision is to build a Louisiana where God is honored, life is respected, families flourish and liberties reign,” Mills said at the hearing.

Most recently, SB-237 was heard on the House floor for debate on May 22.

Conversely, House Bill 707 seeks to establish a regulatory framework for adult-use cannabis legalization, although it doesn’t outright legalize recreational cannabis. “This is a very simple bill,” said bill sponsor Rep. Edmond Jordan. “What it does…it is for the adult use of cannabis. It sets up the retail side with dispensaries and how we would do that.” If passed, it would permit adults over 21 to purchase one ounce of cannabis per day and pay $75 per year to cultivate up to six plants per adult, or 12 plants per household.

House Bill 978 also would not legalize adult-use cannabis but sought to establish a foundation for legalization in the event that the federal government chose to legalize cannabis. “The bill does not legalize recreational marijuana,” said bill sponsor Rep. Candace Newell. “This is a regulation structure that I would like to see Louisiana put in place in preparation for having recreational marijuana legalized on the federal level or on the state level.” However, as of May 20 the bill was rejected in the House.

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The Louisiana House Health and Welfare Committee recently passed House Bill 707 in a unanimous vote to propose a regulatory framework for the state’s cannabis legalization.

The measure, which prefiled in March, doesn’t directly legalize adult-use cannabis but it does start the process of building a foundation for reform. The goal, according to Rep. Edmond Jordan who introduced the bill, is to attempt to get HB-707 passed in the legislature in 2024, followed by introducing two other bills in 2025 which would address adult-use possession and cannabis taxes.

Toward the end of a meeting on April 24, Jordan spoke about HB-707 to the House Health and Welfare Committee. “This is a very simple bill,” said Jordan. “What it does…it is for the adult use of cannabis. It sets up the retail side with dispensaries and how we would do that.”

The bill would allow adults over 21 to purchase one ounce of cannabis every day, and would also allow residents to pay $75 per year to obtain a permit to grow up to six plants at home (with a maximum of 12 plants).

Jordan projected that if adult-use cannabis sales were legal, it could potentially provide more than $1 billion in tax revenue over the next 10 years, which includes an estimated $100 million annually going into the state general fund.

Marijuana Policy Project southeast legislative manager, Kevin Caldwell, was also present to discuss the prospect of adult-use cannabis in Louisiana. According to a report created by Vicente law firm’s economic forecaster model created for Louisiana, there are currently 430,000 adult-use cannabis consumers in the state, and by 2033 the industry could be valued at $900 million. “The total regulated market between 2024-2033 would be $5.8 billion,” Caldwell stated, adding that the report believes Louisiana adult-use cannabis could be put in place by 2027, and between 2027-2023, the industry could be valued at $1.17 billion. This was based on Rep. Barbara Freiberg’s adult-use tax bill which was introduced in 2023, and included a proposal of current local and state taxes, with the addition of a 15% excise tax.

The adult-use cannabis industry fiscal impact, according to the report, would also generate $13.4 billion between 2027-2033.

The report utilized data from all 24 states with legalized adult-use cannabis. Caldwell answered numerous questions from Rep. Rhonda Butler about how the report developed the projected numbers, and the effects of crime increasing in legal states (research shows that it hasn’t led to an increase in crime), and the regulation of potency.

A total of 17 amendments for HB-707 were also adopted during the meeting, including transferring management of a cannabis program from the Louisiana Department of Agriculture and Fisheries to the Louisiana Department of Health (LDH), the removal of a cap on licenses that the LDF can issue to cultivators, processors, and manufacturers, changes a license requirement regarding stakeholder disqualification if they were guilty of or plead guilty to a cannabis-related conviction, and removing a penalty for civil violations.

One individual spoke in opposition about the bill in regard to claims about the impact of cannabis use among youth. “We don’t need to bring this scourge into our state. We just don’t,” they said.

Jordan returned to the podium to speak about the reality of cannabis in Louisiana. “Look, we’re not bringing this into the state, it’s already here. So let’s not ignore what we already have here,” Jordan explained. “The real issue is: do we want to regulate it, do we want to make it safer for our kids, do we want to make sure that we don’t have this laced with fentanyl in some grey or illegal market. I think if we bring it above ground, we regulate it, we’re able to test it, we’re able to do all these other things to make sure that it’s safe, it’s gonna make it better for our kids.”

Jordan asked that the bill be sent to the floor for further discussion, where he can present evidence that contradicts what the opposition discussed. Ultimately the committee voted 10-0 to approve HB-707.

Successful cannabis legislation has been hit or miss over the past few years in Louisiana. In April 2023, a bill to decriminalize cannabis was killed in committee before it was able to reach the House floor. In June 2023, House Bill 286 was signed by Gov. Jeff Landry, which implemented expungements for those who have previously been convicted of cannabis possession. In March 2024, the state’s 10th medical cannabis dispensary opened.

Also recently in March 2024, Louisiana police reported that rats had infiltrated confiscated cannabis and were eating all of the flower. AP News spoke with a police superintendent who said that the “uncleanliness is off the charts,” at that particular building, and it’s not the janitorial staff’s fault.

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