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How-To-Start-CBD-Business-in-Louisiana
09 Sep, 2020

How To Start CBD Business in Louisiana

Industrial analyst predicts that the CBD market in the USA will reach $20 billion by 2014 in sales. This is a major hike from $1.9 billion in the year 2019 with a 49% growth rate annually. This shows that society is becoming more flexible in accepting CBD and turning to it for various ailments even many stores both physical and online began to sell the CBD products. Some of the CBD trends in 2020 are more potency of products, more medicinal CBD products, and more access to CBD through e-commerce and websites. Starting CBD business in Louisiana will sell or manufacture CBD products for various uses. This can be either in stores or online. 

like any other business, you have to go through the various procedures of providing a business plan and insurance to finances but this CBD business requires double and triple checks to come in the market and be compliant with regulations. 

Understanding of Legal Obligations

In 2019 HB491 bill was signed and became a law. This law is very important related to Cannabis products in Louisiana. This law defines cannabis and also legalizes it. This law also segregates legal CBD products and illegal products. It also classifies the regulations for cultivation, production, sales, and distribution of CBD products. 

Currently, federal law for cannabis was established in the year 2018 and the HB491 bill was passed to regulate the Louisiana laws with that of federal laws and to address discrepancies. The important point which is highlighted in HB491 include,

  • In Louisiana, hemp with a THC content less than 0.3% is legal.
  • Products that are derived from legal hemp are also legal within the state like CBD oil and various hemp products.
  • HB491 put the Louisiana CBD industry under the Office of Alcohol and Tobacco Control.
  • Louisiana Office of Alcohol and Tobacco Control sees the cannabis same way as that of alcohol and tobacco
  • For coming into the cannabis selling business the retailer or distributor must possess valid licensed by the Office of Alcohol and Tobacco Control
  • The business of cultivation and production of cannabis must meet the labeling requirements and provide that proof of THC content within the legal range as per regulation.

Legal Products to be Sold and Purchase

When starting a CBD business in Louisiana you must get yourself aware of the regulations that impose restrictions on some types of CBD products that can be purchased and sold. These state rules comply with the rules of the Food and Drug Authority. The CBD products which are illegal for doing business are

  • CBD used for inhalation
  • Food products containing CBD
  • Beverages containing CBD
  • Food additive containing CBD
  • Use of CBD in the dietary supplement

Licensing to start CBD business

In Louisiana, agriculture officials have started issuing the hemp handling and cultivation licenses for processors, farmers, and transporters, and the business range from gas stations to dispensaries selling the CBD products in the state. Louisiana is one of the first three states which have allowed the licenses for those stating business in hemp handling. The state rules for the production of hemp are

  • Licenses are different for different activities of business related to hemp like production, grower, processor or transporter
  • The licenses for growers and processor is about $500 annually
  • The testing of CBD for THC content is $250 annually

A license issued by Louisiana Alcohol and Tobacco Control for CBD business

The office of Alcohol and Tobacco control receives the application for the business owners who wish to start CBD business in Louisiana. This agency outlines the laws required for getting the licenses for CBD business. The retail permits are $175 per year. Under the CBD laws of Louisiana, CBD products are only sold if their THC content is less than 0.3%. In the state, there is a ban on the hemp products which are smokeable and also in food and beverages. These products will remain illegal until Federal authorities pass regulations for adding CBD into food additive

For CBD products to be sold in State it must 

  • Carry bar codes which are scan-able for verifying product
  • QR codes or information for verifying product
  • Certificate of analysis for verifying the product THC content
  • Carry warnings and precautions

Most of the businessmen who have been keeping an eye on the cannabis market are aware of the fact that this market is flourishing at a potentially higher pace. This growth of the cannabis industry is not coming slow and is getting a lot of benefits in terms of profits. Yes, different rules vary from state to state but still in Louisiana the chances of profitable business in CBD products are high with the permit of HB491. This is the right time for you to get aligned with the CBD business in Louisiana either you consider the business of hemp grower, cultivation, producer, seller, or distributer. 

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Author - Noah Nicholls

Noah Nicholls is a full-time Writer, Traveler, and Marketing Expert who is Currently Working for CBD-Boxes. Noah Nicholls writing relates to a range of subjects such as CBD and health.

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