The Louisiana House Health and Welfare Committee Unanimously Passes House Bill 707 to Lay the Groundwork for Cannabis Legalization
Attention all hipsters and cannabis enthusiasts! The Louisiana House Health and Welfare Committee has made a major move towards cannabis legalization with the passing of House Bill 707. This bill, introduced by Rep. Edmond Jordan, aims to create a regulatory framework for the state’s potential adult-use cannabis market.
But don’t get too excited just yet, this bill doesn’t directly legalize cannabis for recreational use. Instead, it sets the stage for future reform by proposing a plan to be implemented in 2024. Rep. Jordan plans to follow this up with two additional bills in 2025 that will address possession and taxation of adult-use cannabis.
During a meeting on April 24, Rep. Jordan spoke to the committee about the bill, stating that it is a “very simple” one that focuses on the retail side of cannabis. If passed, adults over the age of 21 would be able to purchase up to one ounce of cannabis per day. Residents would also have the option to obtain a permit for $75 per year to grow up to six plants at home, with a maximum of 12 plants.
But the real buzz around this bill is the potential tax revenue it could bring in for the state. Rep. Jordan estimates that over the next 10 years, legal adult-use cannabis sales could generate over $1 billion in tax revenue, with $100 million annually going into the state’s general fund.
Kevin Caldwell, the southeast legislative manager for the Marijuana Policy Project, was also present at the meeting to discuss the economic impact of adult-use cannabis in Louisiana. According to a report by the Vicente law firm, the industry could be valued at $900 million by 2033, with a total regulated market of $5.8 billion between 2024-2033.
But that’s not all, folks. The report also predicts that the industry could generate a whopping $13.4 billion between 2027-2033. These numbers were based on a tax bill introduced by Rep. Barbara Freiberg in 2023, which included a 15% excise tax on top of current local and state taxes.
To develop these projections, the report looked at data from all 24 states that have legalized adult-use cannabis. Rep. Rhonda Butler had some questions for Caldwell about the report, including how they arrived at these numbers and the potential effects on crime rates. Caldwell assured her that research has shown that legalizing cannabis does not lead to an increase in crime.
During the meeting, the committee also adopted 17 amendments to the bill, including transferring management of the cannabis program from the Louisiana Department of Agriculture and Fisheries to the Louisiana Department of Health. They also removed a cap on the number of licenses that can be issued to cultivators, processors, and manufacturers.
So, while we may have to wait a few more years for adult-use cannabis to become a reality in Louisiana, the potential economic benefits are definitely something to get excited about. Keep your eyes on HB-707 and the future of cannabis in the Bayou State.
