NEW ORLEANS — Louisiana lawmakers have introduced new legislation in the 2026 regular session that would take a limited step toward legalizing recreational cannabis. House Bill 373, filed Feb. 25 by State Rep. Candace Newell, D-New Orleans, would establish a temporary “adult-use cannabis pilot program” allowing regulated recreational marijuana sales to adults 21 and older.
If approved, the legislation would not create a full-scale recreational market but instead establish a controlled pilot program running from 2027 through 2030 to test broader legalization. Under the proposal, recreational cannabis sales would be limited to the state’s existing licensed medical marijuana operators, with only a subset of dispensaries allowed to participate and each licensee limited to a single dual-use retail location.
The system is effectively controlled by two private operators: Good Day Farm, which partnered with LSU, and Ilera Holistic Healthcare, which operated under Southern University—an arrangement lawmakers formalized in 2024 by transferring the licenses directly to those companies. Oversight would fall to the Louisiana Department of Health, using the state’s existing regulatory framework.
Supporters say the measure would regulate an already active market, address safety concerns tied to unregulated products and generate tax revenue. Opposition has already emerged. Louisiana Attorney General Liz Murrill has publicly criticized the effort, calling expanded marijuana use “bad policy” and predicting the Legislature is unlikely to approve it.
“If it was equitable, if it was fair, then sure – I’d be excited about the recreational ‘gardening’ law,” said Monica Olano. “It’s a scam. It’s not legalization in the way people think.” Monica Olano is a New Orleans entrepreneur and founder and president of Cali Sober Market and Distribution and the Mélange bar on Frenchmen Street.
“In 2024, the state gave those licenses over to private interest which allowed medical gardening to be vertically integrated,” said Olano. “The issue with the recreational bill is that there is a clause that blocks out competition for two or three years. It doesn’t help with pricing, it doesn’t help with the market.” Olano added that the structure would expand revenue for existing license holders while reinforcing the current duopoly.
Federal Legislation Puts Hemp THC Market at Risk
While Louisiana lawmakers consider expanding access to cannabis, uncertainty remains at the federal level as lawmakers push to delay new restrictions on hemp-derived THC products. Rep. James Comer (R-KY), chairman of the House Oversight and Government Reform Committee, is urging Congress to delay new federal restrictions on hemp-derived THC products set to take effect later this year, warning the policy could disrupt a $28.4 billion industry supporting roughly 320,000 U.S. jobs.
The proposal comes through the Hemp Planting Predictability Act, introduced by Rep. Jim Baird (R-IN), which would delay for two years restrictions stemming from a federal funding bill signed into law last year that redefines hemp in a way that could effectively ban most hemp-derived THC drinks, edibles and similar products.
“American farmers are facing serious headwinds… The last thing they need is inaction from Washington that puts a growing, multi-billion-dollar industry at risk,” Comer said.
The 2018 Farm Bill legalized hemp containing less than 0.3 percent THC by dry weight, enabling a market for hemp-derived beverages, gummies and other products. The new law instead caps THC in finished products at levels so low that most items would no longer qualify.
The U.S. Hemp Roundtable warned the change could wipe out up to 95 percent of the industry.
“Farmers are the foundation of America’s $30 billion hemp industry, and they need clarity—not chaos,” said Jonathan Miller, general counsel of the U.S. Hemp Roundtable. “Rep. Baird’s bill helps growers plan and invest responsibly, while giving Congress the time to do its job—creating smart regulation instead of banning products enjoyed by millions of Americans.”
Impact on New Orleans Hemp THC Businesses
In Louisiana, the issue carries particular significance for New Orleans-based Crescent Canna, a fast-growing player in the THC beverage market. Crescent Canna sells products in more than 8,500 retail locations across 20 states, with NielsenIQ data ranking Crescent 9 as the top-selling THC beverage in major retail channels.
“It would end our business, which is one of the fastest-growing companies in Louisiana,” said Joe Gerrity, CEO, Crescent Canna. “It would also eliminate a thriving consumer category that this state established, regulated and has been collecting tax revenue from, one that now supports thousands of small businesses. Nationally, it would undo years of thoughtful state-level legislation, cost states enormous tax revenue, eliminate tens of thousands of jobs and push consumers to the black market for THC products. The consequences for business owners and consumers alike would be disastrous.”
Changing Consumer Drinking Habits
Gerrity sees Crescent Canna products as both an alternative to alcohol and a distinct category of social drink as consumer habits shift.
“There are plenty of consumers who enjoy THC and alcohol, but a growing number are stepping away from alcohol entirely — but still want a buzz and a tasty beverage in their hand. That’s our sweet spot,” said Gerrity. “We actually conducted a survey of more than 1,000 customers and 77% reported reducing or eliminating alcohol consumption since trying THC drinks.”
Building a National Brand from New Orleans
As the category grows, Gerrity said Crescent Canna has focused on building both retail distribution and a professional sales network capable of supporting national growth.
“Our goals from day one have been simple to understand but difficult to execute: make delicious THC drinks at affordable prices, get them into as many retailers as possible, and build a professional sales organization capable of supporting major distributors,” said Gerrity.
“Convincing alcohol distributors to expand into THC has been a challenge. They’re built around selling alcohol and non-alcoholic options, and we don’t fit neatly into either category. Getting them to understand the space and its potential has required significant time and effort. We’ve been fortunate to land some of the largest distributors in the country, and our success with them has driven their peers to move into the category as well.”
“New Orleans is an iconic city known for drinking, music, food and partying — and we’ve leaned into that identity from the start. It’s even reflected in the name of our flagship product, Crescent 9 THC Seltzer. The city attracts a ton of tourism, and our widespread presence across town gives us exposure to customers, store owners, and distributors from all over the country. Dozens of relationships have started with someone reaching out after trying Crescent 9 while visiting the city.”
