The Louisiana Legislature will consider in its 2021 session beginning April 12th a bill (House Bill 640) that will add three more hemp licenses to the industrial hemp law.

The new licenses can be summarized as follows:

Handler License

This license is to be issued and regulated by the Department of Agriculture and Forestry, fees for the license shall not exceed $500 annually, and the license authorizes a handler to:

1. Commercially (i) harvest, (ii) store, or (iii) grind industrial hemp material received from a grower.

2. Clean or package industrial hemp seed received from a seed producers.

3. Broker industrial hemp material.

4. Receive industrial hemp material for testing.

5. fees shall not exceed $500 annually.

* The current contract carrier license would be eliminated, and the right to transport or deliver industrial hemp material in intrastate commerce will be incorporated into the handler license.

Consumable Hemp Processor License

• Involves hemp products and is to be issued and regulated by the Department of Health.

• Creates a new definition for "consumable hemp products.”

• Establishes license fees for processors of consumable hemp products ranging from $175 to $1375 annually.

• Creates criminal penalties of one to twenty years imprisonment at hard labor and a fine of up to $50,000 for processing consumable hemp products without a license

Consumable Hemp Wholesaler License

• To be issued and regulated by the office of Alcohol and Tobacco Control.

• Regulations may not require proof of Louisiana residency, criminal background checks, or proof of ownership or lease of premises.

• Defines wholesaler as "wholesale seller, distributor or packer of consumable hemp products," a distinct and express separation from retail activity.

• Establishes an annual license fee not to exceed $500.

While the four licensed roles conceived in the original legislation provided a solid foundation for the Louisiana industrial hemp industry, these additional licenses will serve to bring the regulatory structure in line with the true shape of the industry. What will likely follow from this much needed refinement is an uptick in jobs and business opportunities for the state’s entrepreneurs. 

Additionally, for growers and seed producers, the handler license will mean much more than just transportation services from a single licensed provider.

Those involved with consumables will have a processor tailored specifically for consumable hemp products and a clear division between the roles and permitted activities of wholesalers and retailers not in the current law.

More information and further reading on Louisiana’s Industrial Hemp Program

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Disclaimer: This blog does not provide legal advice and does not create an attorney-client relationship. If you need legal advice, please contact an attorney directly.