§1484. Permit to sell; office of alcohol and tobacco control

NOTE: Subsection (A) - Paragraph (B)(4) eff. until Jan. 1, 2025. See Acts 2024, No. 752, §1.

            A.(1) Each wholesaler of consumable hemp products shall apply for and obtain a permit from the office of alcohol and tobacco control.

            (2) The commissioner may establish and collect an annual wholesaler permit fee. The amount of the wholesaler permit fee shall be based on the cost of the regulatory functions performed and shall not exceed five hundred dollars per year.

            B.(1)(a) Each person who sells or is about to engage in the business of selling at retail any consumable hemp product shall first apply for and obtain a permit for each place of business from the office of alcohol and tobacco control.

            (b) For purposes of this Section, each individually registered domain name owned or leased by or on behalf of a remote retailer shall be considered a place of business. No person or entity shall be required to have a physical place of business in the state of Louisiana in order to sell consumable hemp products at retail.

            (2) Prior to selling consumable hemp products at a special event, the retailer shall request and promptly receive an annual special event permit from the commissioner. For purposes of this Section, a special event shall be defined as any event held at any location, other than a permitted place of business, where consumable hemp products are sold. The permittee shall notify the commissioner in writing of any special event the permittee will be attending prior to the event. Failure to notify the commissioner shall be grounds for revocation of the permit.

            (3) No permit issued pursuant to this Section shall authorize the permittee to sell or offer for sale any cannabinoid product derived from any source other than hemp.

            (4)(a) No consumable hemp product shall be sold to any person under the age of eighteen years.

            (b) No adult-use consumable hemp product shall be sold to any person under the age of twenty-one years.

NOTE: Subsection (A) - Paragraph (B)(4) eff. Jan. 1, 2025. See Acts 2024, No. 752, §1.

            A.(1) Each wholesaler of consumable hemp products shall apply for and obtain a permit from the office of alcohol and tobacco control.

            (2) The commissioner may establish and collect an annual wholesaler permit fee. The amount of the wholesaler permit fee shall be based on the cost of the regulatory functions performed and shall not exceed five hundred dollars per year.

            (3) A wholesaler permitted pursuant to this Subsection shall obtain and distribute only approved consumable hemp products from a consumable hemp processor permitted in accordance with R.S. 3:1483(A)(1). A wholesaler shall not offer any consumable hemp product for resale except to a retailer that holds a valid consumable hemp product retail permit.

            B.(1)(a) Each person who sells or is about to engage in the business of selling at retail, including remote retailers, any consumable hemp product shall first apply for and obtain a permit for each place of business from the office of alcohol and tobacco control. No retail permit to sell consumable hemp products shall be issued to an applicant whose primary business is marketed to or is to provide goods and services for minors as determined by the commissioner.

            (b)(i) A remote retailer shall be eligible to apply for a retail permit to sell consumable hemp products at retail in this state.

            (ii) An applicant to be a remote retailer of consumable hemp products in this state shall meet the same qualifications as permitted retailers with a physical presence in this state and shall be registered to do business in this state with the secretary of state.

            (iii) A remote retailer shall offer for retail sale only consumable hemp products approved by the department and obtained from a wholesaler permitted in accordance with this Part. The remote retailer shall be required to identify on its website the Louisiana permitted wholesaler from which the consumable hemp products offered for retail sale in the state of Louisiana by the remote retailer have been obtained.

            (iv) For purposes of this Section, each individually registered domain name owned or leased by or on behalf of a remote retailer shall be considered a place of business.

            (2) Prior to selling consumable hemp products at a special event, the retailer shall request and promptly receive an annual special event permit from the commissioner. For purposes of this Section, a special event shall be defined as any event held at any location, other than a permitted place of business, where consumable hemp products are sold. The permittee shall notify the commissioner in writing of any special event that the permittee will be attending prior to the event. Failure to notify the commissioner shall be grounds for revocation of the permit.

            (3) No permit issued pursuant to this Section shall authorize the permittee to sell or offer for sale any cannabinoid product derived from any source other than hemp authorized by this Part.

            (4) A retailer permitted pursuant to this Subsection shall obtain consumable hemp products to sell at retail only from a wholesaler permitted pursuant to Subsection A of this Section.

            (5) No retail permit shall be issued pursuant to this Section to any applicant that also holds a Class A permit issued pursuant to Title 26 of the Louisiana Revised Statutes of 1950. Any restaurant or bar that holds both a Class A permit and a permit to sell consumable hemp products at retail prior to June 17, 2024, shall continue to be eligible to sell consumable hemp products at retail and shall be eligible to renew the retail consumable hemp permit annually.

NOTE: Subsections (C)-(H) eff. until Jan. 1, 2025. See Acts 2024, No. 752, §1.

            C. The commissioner may establish and collect an annual retail permit fee and an annual special event permit fee. The amount of each permit fee provided for in this Subsection shall be based on the cost of the regulatory functions performed and shall not exceed one hundred seventy-five dollars per year.

            D. Any person who violates any of the provisions of this Part or rules adopted pursuant to this Part; who alters, forges, or counterfeits, or uses without authority any permit or other document provided for in this Part; who operates without a permit; or who fails to collect or to timely pay the assessments, fees, and penalties due or assessed pursuant to this Part shall be subject, in addition to any unpaid assessments, late fees, or collection costs, to the civil penalties provided in this Section. Each day on which a violation occurs shall constitute a separate offense.

            (1) For a first offense, not more than three hundred dollars.

            (2) For a second offense that occurs within two years of the first offense, not more than one thousand dollars.

            (3) For a third or subsequent offense that occurs within two years of the first offense, not less than five hundred dollars but not more than three thousand dollars.

            E. In addition to the penalties provided in Subsection D of this Section, any permittee who violates any provisions of this Part shall be subject to having his permit suspended or revoked. Any fine imposed pursuant to this Part or the revocation or suspension of a permit is in addition to and is not in lieu of or a limitation on the imposition of any other penalty provided by law.

            F. In addition to the commissioner's authority to revoke or suspend a permit pursuant to this Section, the secretary of the Department of Revenue shall order the commissioner to immediately suspend the retailer's permit if the secretary determines that a consumable hemp product retailer has failed to timely file returns or pay taxes as required by R.S. 47:1693. The secretary shall order the commissioner to suspend the retailer's permit until the returns have been filed and the taxes are paid. No permit shall be suspended for taxes which have been properly protested or appealed by the retailer pursuant to R.S. 47:1565 or 1567.

            G. The office of alcohol and tobacco control shall investigate any report of a violation of a provision of this Part and report any criminal violation to the appropriate law enforcement agency.

            H. The commissioner shall adopt rules and regulations in accordance with the Administrative Procedure Act to implement the provisions of this Section. The rules shall not include any fees or penalties for any permit not provided for in this Section, or any requirements for proof of Louisiana residency, criminal background checks, diagrams of retail premises, or proof of lease or ownership of any retail establishment.

NOTE: Subsections (C)-(H) eff. Jan. 1, 2025. See Acts 2024, No. 752, §1.

            C.(1) The commissioner may establish and collect an annual retail permit fee and an annual special event permit fee. The amount of each permit fee provided for in this Subsection shall be based on the cost of the regulatory functions performed and shall not exceed one hundred seventy-five dollars per year.

            (2) The commissioner may adopt rules and regulations to restrict on-premise outdoor advertising of consumable hemp products of permitted retailers.

            D. Any person who violates any of the provisions of this Part or rules adopted pursuant to this Part; who alters, forges, or counterfeits, or uses without authority any permit or other document provided for in this Part; who operates without a permit; or who fails to collect or to timely pay the assessments, fees, and penalties due or assessed pursuant to this Part shall be subject, in addition to any unpaid assessments, late fees, or collection costs, to the civil penalties provided in this Section. Each day on which a violation occurs shall constitute a separate offense.

            (1) For a first offense, not more than three hundred dollars.

            (2) For a second offense that occurs within two years of the first offense, not more than one thousand dollars.

            (3) For a third or subsequent offense that occurs within two years of the first offense, not less than five hundred dollars but not more than three thousand dollars.

            E.(1) In addition to the penalties provided in Subsection D of this Section, any permittee who violates any provisions of this Part shall be subject to having his permit suspended or revoked. Any fine imposed pursuant to this Part or the revocation or suspension of a permit is in addition to and is not in lieu of or a limitation on the imposition of any other penalty provided by law.

            (2) Any permittee found to be in violation of any provision of this Part for a third offense that occurs within two years of the first offense shall have his permit revoked and shall be deemed ineligible to apply for or receive any permit authorized to be issued by this Part for a period of five years from the date of revocation.

            F. In addition to the commissioner's authority to revoke or suspend a permit pursuant to this Section, the secretary of the Department of Revenue shall order the commissioner to immediately suspend the retailer's permit if the secretary determines that a consumable hemp product retailer has failed to timely file returns or pay taxes as required by R.S. 47:1693. The secretary shall order the commissioner to suspend the retailer's permit until the returns have been filed and the taxes are paid. No permit shall be suspended for taxes which have been properly protested or appealed by the retailer pursuant to R.S. 47:1565 or 1567.

            G. The office of alcohol and tobacco control shall investigate any report of a violation of a provision of this Part and report any criminal violation to the appropriate law enforcement agency.

            H. The commissioner shall adopt rules and regulations in accordance with the Administrative Procedure Act to implement the provisions of this Section. The rules shall not include any fees or penalties for any permit not provided for in this Section, or any requirements for proof of Louisiana residency, criminal background checks, diagrams of retail premises, or proof of lease or ownership of any retail establishment.

            Acts 2019, No. 164, §1, eff. June 6, 2019; Acts 2020, No. 344, §1; Acts 2021, No. 336, §1; Acts 2022, No. 498, §1, eff. June 16, 2022; Acts 2024, No. 752, §1, eff. Jan. 1, 2025, §3, eff. June 19, 2024.