Recreational Cannabis Business License in Louisiana

Although Louisiana was the first state to legalize medical marijuana in 1978, the state still does not allow recreational use. Fortunately, this might change in the near future as the state considers legalizing an adult-use market. Our cannabis consulting firm is excited to hear that Louisiana lawmakers approved a marijuana legalization bill in committee. With that, cannabis business entrepreneurs may have the opportunity to obtain a cannabis business license in Louisiana sooner than later. In this post, our Louisana cannabis consultants break down the landscape for adult-use cannabis licenses in Louisiana and offer some practical advice on winning a license.

cannabis business in louisiana

Current Medical Marijuana Market in Louisiana

Louisiana currently has a very strict medical marijuana program. For example, licensing is limited and there are strict rules around dispensing. Fortunately, Louisiana added qualifying conditions to expand access for use in 2020.

As of now, Louisiana has 9 cannabis dispensaries throughout the state and 2 cultivators. 5,000 individuals are registered as medical marijuana patients. Dispensaries made $15 million in sales in 2020 and are expected to make anywhere from $25 million to $3o million in 2021. Take a look at where the current medical marijuana dispensaries are on the map below:

Potential New Marijuana Laws in Louisiana

This new bill approved by Louisiana lawmakers will legalize marijuana in the state and includes a decriminalization proposal.

This proposal allows adults over the age of 21 to purchase and possess marijuana from dispensaries with a business license. Additionally, adults are able to possess up to two and a half pounds of marijuana and grow up to 6 plants for personal use.

Cannabis Business License in Louisiana

If you want to apply for a cannabis business license in Louisiana, you have to first make sure you qualify. You can not cultivate, transport, process, or manufacture cannabis without a license. In order to apply for a license to cultivate, transport, process, or manufacture marijuana, you must:

  • Be 25 years of age or older
  • Be a legal resident of the state, and show proof of this. If you apply as an entity, at least 75 percent of the applicant organization’s total ownership/membership must be made up of comprised persons who are residents.
  • Additionally, be registered to conduct business within Louisiana

The number of cannabis business licenses or license categories in Louisiana does not have a limit. Additionally, a grower, processor, and carrier may share the same address/physical location. However, each application and each category require separate application fees. Our cannabis consulting firm can help you walk through fees and requirements.

Louisiana Marijuana Consultant

Each applicant and licensee has to pay an application fee and an annual renewal fee. This fee goes to the department. Specific fees have yet to be disclosed.

Available Cannabis License Types in Louisiana

Louisiana offers cannabis business licenses for multiple license types. Different licenses allow you to perform different marijuana-related tasks.

Cannabis Commercial Grower License in Louisiana

This authorizes the licensee to produce, transport, and sell cannabis and seeds. Additionally, you are able to handle, and transport cannabis in the state.

With a cannabis commercial grower license, you can sell cannabis to a processor or retailer within the state. You can also sell cannabis seeds to other licensed growers, as well as individuals with a personal grower permit.

In order to track cultivation, each licensee needs to complete a monthly yield and sales report to the department by the 15th of each month. The information shall include:

  • First, the amount of cannabis harvested in pounds
  • Second, the amount of usable cannabis on hand
  • Thirdly, the amount of cannabis and usable cannabis sold to processors/retailers in pounds
  • Lastly, the total amount of wholesale sales in dollars

Cannabis Processor License in Louisiana

Secondly, a cannabis processor license allows you to convert cannabis into cannabis products, like edibles, tinctures, etc. Additionally, it allows the business to handle, process, and transport cannabis and cannabis products in the state.

All rules for processing cannabis shall be in accordance with State Food, Drug, and Cosmetic Law.

A processor is able to sell cannabis products to retailers or other licensed cannabis processors. You can not sell directly to the consumer. With this license, you also have to submit monthly reports to the department. This information shall include:

  • The amount of cannabis purchased from cannabis commercial growers
  • Also, the amount of cannabis processed and the amount of cannabis waste
  • Lastly, the total amount of wholesale sales in dollars

Cannabis Contract Carrier License

Thirdly, this license allows you to transport cannabis and cannabis products from a licensed cannabis commercial grower, processor, or retailer to other licensed entities within the state.

All cannabis and cannabis products must be in a locked container with a clear label that states “Cannabis or Cannabis Products.”

Contact Quantum 9 for additional assistance on your cannabis business plan.

Cannabis Retailer License in Louisiana

You can also open a dispensary in Louisiana. The rules and regulations for cannabis retailer permits in Louisana differ from other license types. Some general requirements include:

  • The applicant must be 21 years of age or older
  • Additionally, they must provide proof of a valid lease or ownership of desired premises

Retail locations can not be in locations with drug-free zones. Additionally, these retail dispensaries also have to make sure to contain a restricted area where cannabis and cannabis products are stored and sold.

If you have a retailer license in Louisiana, you can not:

  • Sell more than an ounce of cannabis or cannabis products to an individual in one day
  • Sell cannabis or cannabis products over the internet
  • Also, you can not sell or give away tobacco products, alcohol, or food products

Take a closer look at the bill for specific information and requirements.

Lastly, all of these license types require specific business plans. Our cannabis consultants at Quantum 9 have one of the highest success rates in the industry, and we are eager to help entrepreneurs win licenses.  We help you save time and money with the application process. Contact us for additional information and questions.

Louisiana Marijuana Consultant

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Natalie Jachymiak

Author Natalie Jachymiak

Natalie is an author and marketing expert who covers topics related to business, policy, and licensing within the cannabis industry. She specializes in content creation, advertising, and public relations. She received her bachelor’s degree from the University of Illinois at Chicago majoring in Communications and Marketing.

More posts by Natalie Jachymiak

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