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Legislature to examine legalization, medical program, hemp

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Should Louisiana universities continue to play a state-sanctioned role in the marijuana industry? More importantly, what has been the return on investment so far on the Bayou State’s medical program being guided by LSU and Southern?

Also, how should lawmakers react to a burgeoning marketplace for quasi-weed products?

These are a few important questions representatives and senators intend to smoke out during the regular session, setting the stage for what could be an intense, industry-shifting conversation about the next steps for Louisiana and weed.

SB 228 by Sen. Patrick McMath will allow the state to continue identifying Louisiana State University and Southern University as the “licensed producers of marijuana for therapeutic use in the state” through 2030. The designation will sunset on Jan. 1 of next year.

While the legislation seems routine on the surface, lawmakers hope the bill can become a vehicle for answering some overdue questions about the universities and the medical program.

How are the universities using the related dollars? What kind of marijuana research is being conducted? What kind of contracts are being papered? How do the universities feel about the program at this juncture?

Several sources say an ongoing audit will shed new light on this conversation and could inform how the legislation proceeds.

Another measure that could have far-reaching implications is Sen. Thomas Pressly’s SB 237, which seeks to extend reporting requirements for the state’s industrial hemp program.

The Pressly legislation, as currently drafted, is another instrument that could transform over time based on the desires of the Senate and House, which has many members worried about the quasi-weed retail consumables (such as Delta 8 and Delta 9 hemp-derived products) often found at convenience stores.

“I continue to be concerned about the availability of Delta 8 and Delta 9 products, which are widely available throughout the state in easy-access form,” said Pressly. “I believe we need to address this in some way, and I will work with my colleagues to ensure we do so in a manner that is best suited for the welfare of Louisiana.”

There are a lot of eyeballs on this bill, especially as beer wholesalers now carrying THC seltzers and pharmacies selling medical marijuana and gas stations offering Delta 8 gummies all look to increase market share and profit.

Former House Speaker Clay Schexnayder recently registered as a lobbying on the executive and local levels representing Standards Distribution, which is in the business of ”convenience stores,” according to an Ethics Administration filing.

Schexnayder carried legislation during his last term to establish the so-called “hemp program,” which in turn opened the door to the proliferation of these consumer products.

More than a few lawmakers say Schexnayder didn’t tell the entire truth about his bill, and they remain surprised by the quasi-weed products showing up on shelves.

“We were mislead,” Pressly said.

Schexnayder blamed regulation, not legislation, for the loophole. 

“They approved hundreds of products that shouldn’t have been approved that were illegal by the laws that we had passed,” Schexnayder said. “(The Louisiana Department of Health) just dropped the ball.” 

Former Speaker Schexnayder said he is not consulting for any hemp companies — at the moment. 

“We are in talks,” Schexnayder said.

Several states have already either banned such quasi-weed products, restricted access or are considering legislation to do one or the other.

As of Wednesday afternoon, 11 bills that mention marijuana were pending action in Louisiana.

The Marijuana Policy Project, a national organization that supports legalization, is backing Rep. Mandie Landry’s HB 313 to provide employment protections for people who use medical marijuana, explained Kevin Caldwell, the group’s Southeast Legislative Manager. 

They also will push HB 165 by Rep. Delisha Boyd, which reduces the penalty for possession or use of marijuana paraphernalia to a fine of no more than $100.

Caldwell’s group also supports efforts to fully legalize marijuana for adult use, such as HB 649 by Rep. Candace Newell, which calls for a public vote on the subject.

A veterans group rallied on the Capitol steps Monday for Rep. Edmond Jordan’s HB 707, which would allow cultivation for personal use.

Not being able to attach revenue-raising measures in a non-fiscal session makes legalization even harder than it might otherwise be, Caldwell said. But as lawmakers look to address future shortfalls and reduce tax burdens on citizens, “voluntary taxes” on products like marijuana could be a way forward, he said.

Daryl Schouest, executive director of the Hemp Association of Louisiana, said he is also not aware of any proposals to make major changes to the industry, suggesting that an emergency rule LDH issued last summer may have alleviated some of the concerns. His group stands ready to work with any legislator to address any issues they might have, he added.

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