Louisiana Senate Bill Could Shift Medical Cannabis Cultivation to Private Sector

LOS ANGELES- If signed into law, Senate Bill 228 will allow private contractors to replace Louisiana State University (LSU) and Southern University (SU) in the cultivation of medical cannabis, ending their unique role in this industry. This bill, sponsored by Sen. Patrick McMath, aims to refocus these universities on higher education and transition cannabis cultivation to private companies Good Day Farm and Ilera Holistic Healthcare.

Sen. McMath argues that LSU and SU’s involvement in cannabis cultivation was unintended and that the industry should be privatized. LSU and SU, which relied on Good Day Farm and Ilera Holistic Healthcare to start their cannabis operations, would transfer their cultivation licenses to these private companies permanently, barring new entrants from obtaining licenses.

Concerns about a potential monopoly have been raised, particularly given Good Day Farm’s connections with state legislators. Donald “Boysie” Bollinger, a significant shareholder, and John Davis, whose wife Paula Davis is a House representative, have ties to influential political figures. Former Rep. Joe Marino, a key figure in developing Louisiana’s medical cannabis laws, warned that the bill would create a monopoly in the state’s cannabis market.

SB-228, which removes previous provisions for universities to receive a percentage of gross sales from cannabis cultivation, is currently awaiting Governor Jeff Landry’s signature or veto.

The state has seen significant cannabis-related legislative activity this session. Senate Bill 237, for example, seeks to limit the sale and manufacture of THC-containing products to licensed medical cannabis items only. This move is opposed by many in the hemp industry, who argue it would destroy their businesses and eliminate jobs.

Paige Melancon, owner of Louisiana Hemp Extractors, voiced his frustration, stating that the bill would effectively end his business. Conversely, supporters like Gene Mills of the Louisiana Family Forum advocate for stricter controls on hemp products, citing moral and social reasons.

On the adult-use cannabis front, House Bill 707 proposes a regulatory framework for legalization without explicitly legalizing recreational cannabis. It would allow adults over 21 to purchase and cultivate limited amounts of cannabis. House Bill 978 aimed to establish regulations in anticipation of federal legalization but was rejected by the House on May 20.

As these legislative developments unfold, the future of cannabis regulation in Louisiana remains uncertain, with significant implications for the industry and its stakeholders.