Introduced Version
HOUSE BILL No. 1049
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 2-5-46; IC 7.1-8; IC 15-15-13; IC 15-16-2-36;
IC 24-4-21; IC 24-4-22.
Synopsis: Cannabis regulation. Establishes the cannabis compliance
advisory committee to review and evaluate certain rules, laws, and
programs. Establishes the cannabis compliance commission to regulate
all forms of legal cannabis in Indiana, including industrial hemp and
low THC hemp extract.
Effective: July 1, 2022.
Errington, Campbell
January 4, 2022, read first time and referred to Committee on Agriculture and Rural
Development.
2022 IN 1049—LS 6404/DI 77 Introduced
Second Regular Session of the 122nd General Assembly (2022)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
Constitution) is being amended, the text of the existing provision will appear in this style type,
additions will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional
provision adopted), the text of the new provision will appear in this style type. Also, the
word NEW will appear in that style type in the introductory clause of each SECTION that adds
a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
between statutes enacted by the 2021 Regular Session of the General Assembly.
HOUSE BILL No. 1049
A BILL FOR AN ACT to amend the Indiana Code concerning
agriculture and animals.
Be it enacted by the General Assembly of the State of Indiana:
1 SECTION 1. IC 2-5-46 IS ADDED TO THE INDIANA CODE AS
2 A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY
3 1, 2022]:
4 Chapter 46. Cannabis Compliance Advisory Committee
5 Sec. 1. The following definitions apply throughout this chapter:
6 (1) "Advisory committee" means the cannabis compliance
7 advisory committee established by section 2 of this chapter.
8 (2) "Cannabis compliance commission" means the
9 commission established by IC 7.1-8-2-1.
10 Sec. 2. The cannabis compliance advisory committee is
11 established.
12 Sec. 3. (a) The advisory committee consists of the following four
13 (4) voting members and five (5) nonvoting members:
14 (1) One (1) legislative member appointed by the speaker of the
15 house of representatives.
16 (2) One (1) legislative member appointed by the minority
17 leader of the house of representatives.
2022 IN 1049—LS 6404/DI 77 2
1 (3) One (1) legislative member appointed by the president pro
2 tempore of the senate.
3 (4) One (1) legislative member appointed by the minority
4 leader of the senate.
5 (5) One (1) representative of law enforcement, appointed as a
6 nonvoting member by the chairperson of the legislative
7 council.
8 (6) The commissioner of the department of state revenue or
9 the commissioner's designee, who serves ex officio as a
10 nonvoting member.
11 (7) The director of the department of agriculture or the
12 director's designee, who serves ex officio as a nonvoting
13 member.
14 (8) The state seed commissioner, who serves ex officio as a
15 nonvoting member.
16 (9) The executive director of the cannabis compliance
17 commission or the executive director's designee, who serves
18 ex officio as a nonvoting member.
19 (b) The chairperson of the legislative council shall annually
20 select one (1) of the voting members to serve as chairperson.
21 Sec. 4. (a) A legislative member of the advisory committee may
22 be removed at any time by the appointing authority who appointed
23 the legislative member.
24 (b) An appointed member of the advisory committee may be
25 removed at any time by the appointing authority who appointed
26 the member.
27 (c) If a vacancy exists on the advisory committee, the appointing
28 authority who appointed the former member whose position has
29 become vacant shall appoint an individual to fill the vacancy.
30 Sec. 5. Each member of the advisory committee is entitled to
31 receive the same per diem, mileage, and travel allowances paid to
32 individuals who serve as legislative and lay members, respectively,
33 of interim study committees established by the legislative council.
34 Sec. 6. The affirmative votes of a majority of the voting
35 members appointed to the advisory committee are required for the
36 advisory committee to take action on any measure, including final
37 reports.
38 Sec. 7. The advisory committee shall do the following:
39 (1) Review rules adopted by the cannabis compliance
40 commission.
41 (2) Review legislative proposals suggested by the cannabis
42 compliance commission.
2022 IN 1049—LS 6404/DI 77 3
1 (3) Evaluate the cannabis research and development program
2 under IC 7.1-8-5.
3 (4) Evaluate the operation of the industrial hemp program
4 under IC 15-15-13.
5 (5) Evaluate the processing, packaging, distribution, and sale
6 of low THC hemp extract under IC 24-4-21 through
7 IC 24-4-22.
8 (6) Consider any other matter that relates to cannabis.
9 SECTION 2. IC 7.1-8 IS ADDED TO THE INDIANA CODE AS A
10 NEW ARTICLE TO READ AS FOLLOWS [EFFECTIVE JULY 1,
11 2022]:
12 ARTICLE 8. CANNABIS REGULATION
13 Chapter 1. Definitions
14 Sec. 1. As used in this article, "cannabis" means cannabis that
15 is legal under Indiana law, including industrial hemp and low THC
16 hemp extract.
17 Chapter 2. General Provisions
18 Sec. 1. The cannabis compliance commission is established to
19 regulate the growth, processing, distribution, and sale of legal
20 cannabis in Indiana, including industrial hemp and low THC hemp
21 extract.
22 Sec. 2. (a) The cannabis compliance commission consists of:
23 (1) the cannabis compliance commission executive committee;
24 (2) the executive director; and
25 (3) other employees necessary to carry out the duties of the
26 cannabis compliance commission.
27 (b) The cannabis compliance commission executive committee
28 consists of four (4) commissioners, who shall hire the executive
29 director and direct and oversee the operation of the cannabis
30 compliance commission.
31 Sec. 3. (a) The cannabis compliance commission executive
32 committee commissioners shall be appointed by the governor.
33 (b) A commissioner is eligible for reappointment.
34 (c) Not more than two (2) commissioners may belong to the
35 same political party.
36 (d) A commissioner shall be appointed to a four (4) year term.
37 (e) A commissioner serves the commissioner's term at the
38 pleasure of the governor.
39 Sec. 4. To be eligible for appointment as a commissioner, an
40 individual must have the following qualifications:
41 (1) The individual may not be employed by the state in any
42 other capacity.
2022 IN 1049—LS 6404/DI 77 4
1 (2) The individual must have good moral character.
2 (3) The individual must have been a resident of Indiana for at
3 least five (5) years immediately preceding the appointment.
4 Sec. 5. (a) The governor shall appoint, from among the four (4)
5 commissioners appointed under section 3(a) of this chapter:
6 (1) one (1) commissioner to serve as chairperson; and
7 (2) one (1) commissioner to serve as vice chairperson;
8 of the cannabis compliance commission executive committee.
9 (b) The vice chairperson shall act as the chairperson if the
10 chairperson is unable to attend a meeting of the cannabis
11 compliance commission executive committee.
12 Sec. 6. A commissioner appointed to fill a vacancy in the
13 cannabis compliance commission executive committee shall serve
14 only for the unexpired part of the original vacated term. In all
15 other respects, an appointment to fill a vacancy shall be made in
16 the same manner that an original appointment is made.
17 Sec. 7. As compensation for services, each commissioner is
18 entitled to the minimum salary per diem provided by
19 IC 4-10-11-2.1(b). A commissioner is also entitled to
20 reimbursement for traveling expenses as provided under
21 IC 4-13-1-4 and other expenses actually incurred in connection
22 with the commissioner's duties as provided in the state policies and
23 procedures established by the Indiana department of
24 administration and approved by the budget agency.
25 Sec. 8. (a) Each commissioner shall execute:
26 (1) a surety bond in the amount of ten thousand dollars
27 ($10,000), with surety approved by the governor; and
28 (2) an oath of office.
29 (b) The surety bond and the oath of office shall be filed in the
30 office of the secretary of state.
31 Sec. 9. The required surety bond executed and filed on behalf of
32 a commissioner shall be made payable to the state of Indiana and
33 conditioned upon the faithful discharge of the commissioner's
34 duties.
35 Sec. 10. The cannabis compliance commission executive
36 committee shall hold meetings at the call of the chairperson. The
37 cannabis compliance commission executive committee may
38 establish rules governing meetings.
39 Sec. 11. (a) Three (3) cannabis compliance commission
40 commissioners constitute a quorum for the transaction of business.
41 (b) Each commissioner has one (1) vote.
42 (c) Action of the cannabis compliance commission executive
2022 IN 1049—LS 6404/DI 77 5
1 committee may be taken only upon the affirmative votes of at least
2 two (2) commissioners. If a vote is a tie, the position for which the
3 chairperson voted prevails, as long as that position has received the
4 affirmative votes of at least two (2) commissioners.
5 Sec. 12. A commissioner may not solicit or accept a political
6 contribution from any individual or entity that has a permit or has
7 applied for a permit issued by the cannabis compliance
8 commission, or that is otherwise regulated by the cannabis
9 compliance commission. However, the right of a commissioner to
10 vote as the commissioner chooses and to express the
11 commissioner's opinions on political subjects and candidates may
12 not be impaired.
13 Chapter 3. Employees and Administration
14 Sec. 1. (a) The cannabis compliance commission executive
15 committee shall appoint an executive director to assist the cannabis
16 compliance commission in the efficient administration of its powers
17 and duties.
18 (b) The cannabis compliance commission executive committee
19 shall fix the salary of the executive director, subject to the approval
20 of the budget agency.
21 (c) The executive director:
22 (1) is the executive agent of the cannabis compliance
23 commission executive committee in the administration of the
24 committee's policies; and
25 (2) has the other powers and duties delegated to the executive
26 director by the cannabis compliance commission executive
27 committee or specifically assigned to the executive director by
28 statute.
29 Sec. 2. The executive director has the power to employ all
30 necessary employees, determine their duties, and, subject to the
31 approval of the cannabis compliance commission executive
32 committee and the budget agency, fix their salaries.
33 Chapter 4. Powers and Duties
34 Sec. 1. The chairperson is the presiding officer at the meetings
35 of the cannabis compliance commission executive committee. The
36 chairperson, together with the executive director, shall prepare,
37 certify, and authenticate all proceedings, minutes, records, rules,
38 and regulations of the cannabis compliance commission executive
39 committee. The chairperson shall also perform all other duties as
40 imposed on the chairperson by this title.
41 Sec. 2. (a) The cannabis compliance commission has the general
42 power to organize its work, and to enforce and administer:
2022 IN 1049—LS 6404/DI 77 6
1 (1) this article;
2 (2) IC 15-15-13 (industrial hemp);
3 (3) IC 24-4-21 (distribution of low THC hemp extract);
4 (4) IC 24-4-22 (sale of low THC hemp extract); and
5 (5) rules adopted by the cannabis compliance commission.
6 (b) The cannabis compliance commission has the following
7 additional powers and duties:
8 (1) To have a designated agent, upon presentation of proper
9 credentials, enter upon private or public property to inspect
10 for and investigate possible violations of:
11 (A) this article;
12 (B) IC 15-15-13 (industrial hemp);
13 (C) IC 24-4-21 (distribution of low THC hemp extract);
14 (D) IC 24-4-22 (sale of low THC hemp extract); and
15 (E) rules adopted by the cannabis compliance commission.
16 (2) To employ or contract for the legal, professional, and
17 other personnel and assistance that is necessary for the
18 efficient performance of the cannabis compliance
19 commission's duties.
20 (3) To issue orders to:
21 (A) secure compliance with:
22 (i) this article;
23 (ii) IC 15-15-13 (industrial hemp);
24 (iii) IC 24-4-21 (distribution of low THC hemp extract);
25 (iv) IC 24-4-22 (sale of low THC hemp extract); and
26 (v) rules adopted by the cannabis compliance
27 commission; and
28 (B) assess civil penalties.
29 (4) To bring an appropriate action in court to:
30 (A) enforce any order of the cannabis compliance
31 commission;
32 (B) collect any penalties or fees; and
33 (C) procure or secure compliance with:
34 (i) this article;
35 (ii) IC 15-15-13 (industrial hemp);
36 (iii) IC 24-4-21 (distribution of low THC hemp extract);
37 (iv) IC 24-4-22 (sale of low THC hemp extract); and
38 (v) rules adopted by the cannabis compliance
39 commission.
40 (5) To hold hearings before the cannabis compliance
41 commission or its representative.
42 (6) To take testimony and receive evidence.
2022 IN 1049—LS 6404/DI 77 7
1 (7) To conduct inquiries with or without a hearing.
2 (8) To receive reports of investigators or other governmental
3 officers and employees.
4 (9) To administer oaths.
5 (10) To subpoena witnesses and to compel them to appear and
6 testify.
7 (11) To certify copies of records of the cannabis compliance
8 commission or any other document or record on file with the
9 cannabis compliance commission.
10 (12) To fix the form, mode, manner, time, and number of
11 times for the posting or publication of any required notices if
12 not otherwise provided.
13 (13) To adopt rules under IC 4-22-2 to carry out:
14 (A) this article;
15 (B) IC 15-15-13 (industrial hemp);
16 (C) IC 24-4-21 (distribution of low THC hemp extract);
17 and
18 (D) IC 24-4-22 (sale of low THC hemp extract).
19 (14) To establish fees for licenses, permits, and applications.
20 (15) To retain and consult with experts and other consultants.
21 (16) To carry out any other duties assigned by statute.
22 Sec. 3. The cannabis compliance commission shall adopt rules
23 under IC 4-22-2 to prescribe the forms for all applications,
24 documents, permits, and licenses used in the administration of:
25 (1) this article;
26 (2) IC 15-15-13 (industrial hemp);
27 (3) IC 24-4-21 (distribution of low THC hemp extract);
28 (4) IC 24-4-22 (sale of low THC hemp extract); and
29 (5) rules adopted by the cannabis compliance commission.
30 Sec. 4. The cannabis compliance commission has the following
31 duties:
32 (1) To regulate, enforce, and carry out the provisions of
33 IC 15-15-13 (industrial hemp).
34 (2) To regulate, enforce, and carry out the provisions of
35 IC 24-4-21 and IC 24-4-22 (distribution and sale of low THC
36 hemp extract).
37 (3) To adopt protocols to:
38 (A) prevent fraud;
39 (B) ensure the accuracy of information contained in an
40 application relating to industrial hemp and low THC hemp
41 extract; and
42 (C) protect the privacy of an applicant.
2022 IN 1049—LS 6404/DI 77 8
1 (4) To encourage research concerning cannabis and issue
2 research licenses as described in IC 7.1-8-5.
3 Chapter 5. Research and Development
4 Sec. 1. To permit and encourage research concerning cannabis:
5 (1) an accredited institution of higher education with a
6 physical presence in Indiana; and
7 (2) a pharmaceutical or agricultural business having a
8 research facility in Indiana;
9 may apply to the cannabis compliance commission for a license to
10 conduct research concerning cannabis.
11 Sec. 2. An application under this chapter must include the
12 following:
13 (1) The nature of the research project.
14 (2) The names of the individuals who will conduct the
15 research project.
16 (3) The approximate quantity of cannabis that will be used in
17 the research project.
18 (4) The security protocol to be implemented to ensure that
19 cannabis is not diverted for uses other than the research
20 project.
21 (5) Any other information required by the cannabis
22 compliance commission.
23 Sec. 3. Upon receipt of a completed application, the cannabis
24 compliance commission may issue a research license to the
25 accredited institution of higher education or pharmaceutical or
26 agricultural business. The research license must specifically list the
27 names of each individual participating in the research project who
28 will have custody or control of cannabis for research purposes and
29 the approximate quantity of cannabis that will be used in the
30 research project.
31 Sec. 4. The cannabis compliance commission may charge a
32 reasonable fee for issuance of a research license.
33 SECTION 3. IC 15-15-13-0.5, AS ADDED BY P.L.165-2014,
34 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
35 JULY 1, 2022]: Sec. 0.5. The state seed commissioner cannabis
36 compliance commission shall administer this chapter.
37 SECTION 4. IC 15-15-13-1, AS AMENDED BY P.L.190-2019,
38 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
39 JULY 1, 2022]: Sec. 1. (a) Nothing in this chapter authorizes any
40 person to violate any federal law or regulation.
41 (b) Nothing in this chapter authorizes the state seed commissioner
42 to regulate a hemp product.
2022 IN 1049—LS 6404/DI 77 9
1 SECTION 5. IC 15-15-13-2, AS ADDED BY P.L.165-2014,
2 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3 JULY 1, 2022]: Sec. 2. As used in this chapter, "agricultural hemp
4 seed" means Cannabis sativa seed that meets any labeling, quality, and
5 other standards set by the state seed commissioner cannabis
6 compliance commission and that is intended for sale or is sold to, or
7 purchased by, licensed growers for planting.
8 SECTION 6. IC 15-15-13-2.5 IS ADDED TO THE INDIANA
9 CODE AS A NEW SECTION TO READ AS FOLLOWS
10 [EFFECTIVE JULY 1, 2022]: Sec. 2.5. As used in this chapter,
11 "cannabis compliance commission" means the cannabis
12 compliance commission established by IC 7.1-8-2-1.
13 SECTION 7. IC 15-15-13-7, AS AMENDED BY P.L.190-2019,
14 SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
15 JULY 1, 2022]: Sec. 7. (a) Subject to section 15 of this chapter, The
16 production of, possession of, scientific study of, and commerce in hemp
17 is authorized in Indiana. Hemp is subject to regulation by the state seed
18 commissioner. cannabis compliance commission. The state seed
19 commissioner cannabis compliance commission shall adopt rules to
20 oversee the licensing, production, and management of:
21 (1) hemp; and
22 (2) agricultural hemp seed.
23 (b) All growers and handlers must have a hemp license issued by
24 the state seed commissioner. cannabis compliance commission.
25 Growers and handlers engaged in the production of agricultural hemp
26 seed must also have an agricultural hemp seed production license.
27 (c) An application for a hemp license or agricultural hemp seed
28 production license must include the following:
29 (1) The name and address of the applicant.
30 (2) The name and address of the hemp operation of the applicant.
31 (3) The global positioning system coordinates and legal
32 description of the property used for the hemp operation.
33 (4) If the hemp license or agricultural hemp seed production
34 license application is made by a grower, the acreage size of the
35 field where the hemp will be grown.
36 (5) A statement signed by the applicant, under penalty of perjury,
37 that the person applying for the hemp license or agricultural hemp
38 seed production license has not been convicted of a drug related
39 felony or misdemeanor in the previous ten (10) years.
40 (6) A written consent allowing the state police department to
41 conduct a state or national criminal history background check.
42 (7) A written consent allowing the state police department, the
2022 IN 1049—LS 6404/DI 77 10
1 state seed commissioner, cannabis compliance commission, or
2 the state seed commissioner's cannabis compliance
3 commission's authorized representative, if a license is issued to
4 the applicant, to conduct aerial inspections and to enter the
5 premises on which the hemp is grown to conduct physical
6 inspections of hemp planted and grown by the applicant, and to
7 ensure the plants meet the definition of hemp as set forth in
8 section 6 of this chapter.
9 (8) A nonrefundable application fee, which must include the
10 amount necessary to conduct a state or national criminal history
11 background check, in an amount determined by the state seed
12 commissioner. cannabis compliance commission.
13 (9) Any other information required by the state seed
14 commissioner. cannabis compliance commission.
15 (d) Rules adopted by the state seed commissioner before July 1,
16 2022, concerning industrial hemp are considered, after June 30,
17 2022, rules of the cannabis compliance commission.
18 SECTION 8. IC 15-15-13-8, AS AMENDED BY P.L.156-2020,
19 SECTION 62, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
20 JULY 1, 2022]: Sec. 8. (a) Each license application received under this
21 chapter must be processed as follows:
22 (1) Upon receipt of a license application, the state seed
23 commissioner cannabis compliance commission shall do one (1)
24 of the following:
25 (A) Forward a copy of the application to the state police
26 department. The state police department shall then do the
27 following:
28 (i) Perform a state or national criminal history background
29 check of the applicant.
30 (ii) Determine if the requirements under section 7(c)(5) of
31 this chapter concerning prior criminal convictions have been
32 met.
33 (iii) Return the application to the state seed commissioner
34 cannabis compliance commission along with the state
35 police department's determinations and a copy of the state or
36 national criminal history background check.
37 (B) Do the following:
38 (i) Perform a state or national criminal history background
39 check of the applicant under the same standards as the state
40 police department would perform.
41 (ii) Determine if the requirements under section 7(c)(5) of
42 this chapter concerning prior criminal convictions have been
2022 IN 1049—LS 6404/DI 77 11
1 met.
2 (2) The state seed commissioner cannabis compliance
3 commission shall review the license application and the criminal
4 history background check.
5 (b) If the state seed commissioner cannabis compliance
6 commission determines that all the requirements under this chapter
7 have been met and that a license should be granted to the applicant, the
8 state seed commissioner cannabis compliance commission shall
9 approve the application for issuance of a license.
10 (c) A hemp license or agricultural hemp seed production license
11 expires on December 31 of the year for which the license was issued,
12 unless revoked. A hemp license or agricultural hemp seed production
13 license may be renewed in accordance with rules adopted by the state
14 seed commissioner cannabis compliance commission and is
15 nontransferable.
16 SECTION 9. IC 15-15-13-9, AS AMENDED BY P.L.190-2019,
17 SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
18 JULY 1, 2022]: Sec. 9. (a) An agricultural hemp seed production
19 license issued under this chapter authorizes a grower or handler to
20 produce and handle agricultural hemp seed for sale to licensed hemp
21 growers and handlers. A seller of agricultural hemp seed shall ensure
22 that the seed complies with any standards set by the state seed
23 commissioner. cannabis compliance commission. The state seed
24 commissioner cannabis compliance commission shall make available
25 to growers information that identifies sellers of agricultural hemp seed.
26 (b) A person who sells agricultural hemp seed to a grower must be
27 a seed distributor who has a permit under IC 15-15-1-34.
28 (c) All growers and handlers must keep records in accordance with
29 rules adopted by the state seed commissioner. cannabis compliance
30 commission. Upon at least three (3) days notice, the state seed
31 commissioner cannabis compliance commission may audit the
32 required records during normal business hours. The state seed
33 commissioner cannabis compliance commission may conduct an
34 audit for the purpose of ensuring compliance with:
35 (1) this chapter;
36 (2) rules adopted by the state seed commissioner; cannabis
37 compliance commission; or
38 (3) hemp license or agricultural hemp seed production license
39 requirements, terms, and conditions.
40 (d) In addition to an audit conducted in accordance with subsection
41 (c), the state seed commissioner cannabis compliance commission
42 may inspect independently, or in cooperation with the state police
2022 IN 1049—LS 6404/DI 77 12
1 department, a federal law enforcement agency, or a local law
2 enforcement agency, any hemp crop during the crop's growth phase and
3 take a representative composite sample for field analysis. If a crop
4 contains an average delta-9-tetrahydrocannabinol (THC) concentration
5 exceeding three-tenths of one percent (0.3%) on a dry weight basis, the
6 state seed commissioner cannabis compliance commission may
7 detain, seize, or embargo the crop.
8 (e) The state seed commissioner cannabis compliance commission
9 may revoke a license issued under this chapter to a person that fails to
10 cooperate with:
11 (1) the state seed commissioner; cannabis compliance
12 commission;
13 (2) the state police;
14 (3) a federal law enforcement agency; or
15 (4) a local law enforcement agency;
16 in an inspection, or in the taking of a sample, under subsection (d).
17 (f) A failure to cooperate described in subsection (e) constitutes
18 probable cause for the state seed commissioner, cannabis compliance
19 commission, state police, federal law enforcement agency, or local law
20 enforcement agency to search the premises of the licensee's hemp
21 operation.
22 (g) If the state police department, a federal law enforcement agency,
23 or a local law enforcement agency cooperates with the state seed
24 commissioner cannabis compliance commission in the detention,
25 seizure, or embargo of a crop under this section:
26 (1) the state police department, federal law enforcement agency,
27 or local law enforcement agency; and
28 (2) any officer or employee of the state police department, federal
29 law enforcement agency, or local law enforcement agency who is
30 involved in the detention, seizure, or embargo;
31 is immune from civil liability for the detention, seizure, or embargo.
32 (h) The state seed commissioner cannabis compliance commission
33 may order a hemp crop that is detained, seized, or embargoed for
34 noncompliance with this chapter to be destroyed by the owner.
35 However, except as prohibited by federal law, the grower may appeal
36 to the state seed commissioner cannabis compliance commission for
37 the hemp crop to be diverted to a willing licensed processor for
38 processing and sale for industrial use. A hemp crop that is detained,
39 seized, or embargoed may not be used for cannabidiol, other extracts,
40 oil, food, or cosmetic products that are used for humans or animals.
41 (i) A grower shall reimburse the state seed commissioner cannabis
42 compliance commission for the cost of testing conducted on the
2022 IN 1049—LS 6404/DI 77 13
1 grower's crop under this section.
2 SECTION 10. IC 15-15-13-9.5, AS ADDED BY P.L.190-2019,
3 SECTION 11, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
4 JULY 1, 2022]: Sec. 9.5. (a) A person who is a handler licensed under
5 this section may distribute clones and other nonseed propagative
6 materials of a hemp plant using the person's own labeling, if the
7 distributor does the following:
8 (1) Complies with the requirements of this chapter.
9 (2) Reports the variety and quantity of each variety of the
10 propagative material of plant sold.
11 (3) Pays the inspection fee on the basis of the report.
12 (4) Labels the propagative material with the information required
13 by the state seed commissioner. cannabis compliance
14 commission.
15 (5) Keeps records to accurately determine the named varieties and
16 the number of plants of each variety distributed.
17 (6) Grants the state seed commissioner cannabis compliance
18 commission or the state seed commissioner's cannabis
19 compliance commission's authorized representative access to
20 examine the handler's records and verify the quantity and each
21 variety of propagative material distributed.
22 (7) Report, under oath, to the state seed commissioner cannabis
23 compliance commission on forms furnished by the state seed
24 commissioner cannabis compliance commission each variety
25 and quantity of propagative material sold during each semiannual
26 period.
27 (8) Any other information or conditions stated in the application.
28 (b) The state seed commissioner cannabis compliance commission
29 may revoke a handler's license if the commissioner commission
30 determines any of the following:
31 (1) That the licensee has not complied with the requirements
32 under this chapter.
33 (2) The report required in subsection (a) has not been submitted
34 and is more than ten (10) days late.
35 (3) The report required in subsection (a) contained false
36 information.
37 (4) The labeling requirements under this chapter have not been
38 met.
39 (c) If the inspection fee has not been paid and is more than ten (10)
40 days late, the state seed commissioner cannabis compliance
41 commission shall assess a late fee.
42 (d) Each year the:
2022 IN 1049—LS 6404/DI 77 14
1 (1) report required under subsection (a)(7); and
2 (2) inspection fees required under this chapter;
3 for the period beginning on January 1 and ending on June 30 and for
4 the period beginning on July 1 and ending on December 31 are due not
5 more than thirty (30) days after the end of the semiannual period.
6 SECTION 11. IC 15-15-13-10, AS ADDED BY P.L.165-2014,
7 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
8 JULY 1, 2022]: Sec. 10. The amount of any fees charged growers and
9 handlers by the state seed commissioner cannabis compliance
10 commission under this chapter must be sufficient to cover the cost of
11 the administration of this chapter, including the cost of conducting
12 audits and testing.
13 SECTION 12. IC 15-15-13-11, AS AMENDED BY P.L.190-2019,
14 SECTION 12, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
15 JULY 1, 2022]: Sec. 11. Only a hemp licensee, the licensee's designee,
16 or the licensee's agents may be permitted to transport hemp off a
17 production site. When transporting hemp off the production site, the
18 hemp licensee, designee, or agent shall have in the licensee's,
19 designee's, or agent's possession the licensing documents from the state
20 seed commissioner cannabis compliance commission evidencing that
21 the hemp is from certified seed produced by a licensed grower.
22 SECTION 13. IC 15-15-13-12, AS AMENDED BY P.L.156-2020,
23 SECTION 63, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
24 JULY 1, 2022]: Sec. 12. The state seed commissioner cannabis
25 compliance commission is responsible for the following:
26 (1) Monitoring the hemp grown by any license holder.
27 (2) Conducting random testing of the hemp for compliance with
28 tetrahydrocannabinol (THC) levels. The state seed commissioner
29 cannabis compliance commission may enter into agreements
30 with one (1) or more laboratories selected by the Indiana state
31 police department to perform testing under this subdivision.
32 (3) Establishing necessary testing criteria and protocols, including
33 a procedure for testing, using post decarboxylation or other
34 similarly reliable methods, for delta-9-tetrahydrocannabinol
35 concentration levels of the hemp produced.
36 (4) Establishing the minimum number of acres to be planted
37 under each license issued under this chapter.
38 (5) Regulating any propagative material of a hemp plant.
39 SECTION 14. IC 15-15-13-13, AS AMENDED BY P.L.190-2019,
40 SECTION 14, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
41 JULY 1, 2022]: Sec. 13. (a) Subject to section 13.5 of this chapter, in
42 addition to any other liability or penalty provided by law, the state seed
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1 commissioner cannabis compliance commission may revoke or refuse
2 to issue or renew a hemp license or an agricultural hemp seed
3 production license and may impose a civil penalty for a violation of:
4 (1) a license requirement;
5 (2) license terms or conditions;
6 (3) a rule relating to growing or handling hemp; or
7 (4) section 19 of this chapter.
8 (b) The state seed commissioner cannabis compliance commission
9 may not impose a civil penalty under this section that exceeds two
10 thousand five hundred dollars ($2,500).
11 (c) The state seed commissioner cannabis compliance commission
12 may revoke or refuse to issue or renew a hemp license or an
13 agricultural hemp seed production license for a violation of any rule of
14 the state seed commissioner cannabis compliance commission that
15 pertains to agricultural operations or activities other than hemp
16 growing or handling.
17 (d) Any civil penalties collected under this section shall be
18 transferred to the Indiana state department of agriculture and used for
19 hemp marketing and research purposes.
20 (e) In addition to payment of any civil penalty imposed under this
21 section, a person who commits a violation described in subsection (a)
22 shall reimburse the state seed commissioner cannabis compliance
23 commission for any costs incurred by the state seed commissioner
24 cannabis compliance commission for laboratory testing of material
25 pertaining to the violation.
26 SECTION 15. IC 15-15-13-13.5, AS AMENDED BY P.L.156-2020,
27 SECTION 64, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
28 JULY 1, 2022]: Sec. 13.5. (a) Except as provided in subsection (b), the
29 state seed commissioner cannabis compliance commission shall give
30 a person who negligently violates this chapter a reasonable time,
31 determined by the state seed commissioner, cannabis compliance
32 commission, to correct the violation without imposing a penalty under
33 section 13 of this chapter. However, the state seed commissioner
34 cannabis compliance commission may require the person who
35 committed the violation to comply with a corrective action plan
36 determined by the state seed commissioner cannabis compliance
37 commission and report to the state seed commissioner cannabis
38 compliance commission on compliance with the corrective action
39 plan.
40 (b) A person who commits a negligent violation of this chapter three
41 (3) times in a five (5) year period shall immediately be ineligible to
42 produce hemp for five (5) years.
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1 (c) If the state seed commissioner cannabis compliance
2 commission believes that a person has knowingly or intentionally
3 violated this chapter, the state seed commissioner cannabis
4 compliance commission shall notify:
5 (1) the superintendent of the state police department; and
6 (2) the prosecuting attorney of the county in which the violation
7 occurred;
8 of the violation.
9 (d) A person who commits a negligent violation under this chapter
10 is subject to a late fee as established by rule adopted by the state seed
11 commissioner. cannabis compliance commission.
12 SECTION 16. IC 15-15-13-14, AS AMENDED BY P.L.190-2019,
13 SECTION 16, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
14 JULY 1, 2022]: Sec. 14. (a) The state seed commissioner cannabis
15 compliance commission shall adopt rules under IC 4-22-2 to
16 implement and administer this chapter.
17 (b) The state seed commissioner cannabis compliance commission
18 may adopt emergency rules in the manner provided under
19 IC 4-22-2-37.1 to comply with any federal requirement under the
20 Agriculture Improvement Act of 2018 to implement and administer this
21 chapter.
22 SECTION 17. IC 15-15-13-15 IS REPEALED [EFFECTIVE JULY
23 1, 2022]. Sec. 15. Before December 31, 2019, the state seed
24 commissioner, after consultation with the governor, the director of the
25 state department of agriculture, and the superintendent of the state
26 police department, shall submit a plan that monitors and regulates the
27 production of hemp to the United States Department of Agriculture. If
28 the United States Department of Agriculture disapproves the plan, the
29 state seed commissioner shall submit an amended plan to the United
30 States Department of Agriculture.
31 SECTION 18. IC 15-15-13-16, AS ADDED BY P.L.165-2014,
32 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
33 JULY 1, 2022]: Sec. 16. (a) The state seed commissioner cannabis
34 compliance commission shall pay all fees collected under this chapter
35 to the treasurer of Purdue University.
36 (b) The board of trustees of Purdue University shall expend the fees
37 on proper vouchers filed with the treasurer of Purdue University. The
38 treasurer shall pay vouchers for the following expenses:
39 (1) The employment of inspectors and seed analysts.
40 (2) Procuring samples.
41 (3) Printing bulletins giving the results of inspection.
42 (4) Any other expenses of the Purdue University agricultural
2022 IN 1049—LS 6404/DI 77 17
1 programs authorized by law and for implementing this chapter.
2 (c) The dean of agriculture of Purdue University shall make and
3 submit a financial report to the governor in such form as the state board
4 of accounts requires, showing the total receipts and expenditures of all
5 fees received under this chapter.
6 (d) Excess funds from the collection of fees under this chapter are
7 subject to IC 15-16-2-36.
8 SECTION 19. IC 15-15-13-17, AS AMENDED BY P.L.190-2019,
9 SECTION 18, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
10 JULY 1, 2022]: Sec. 17. (a) The seed commissioner cannabis
11 compliance commission may keep the:
12 (1) names of growers and handlers who are licensed under this
13 chapter; and
14 (2) locations of licensed hemp crops;
15 confidential for purposes of IC 5-14-3.
16 (b) The seed commissioner cannabis compliance commission may
17 share confidential information under subsection (a) with the state
18 police department, law enforcement officers (as defined in
19 IC 35-31.5-2-185), and federal enforcement officers (as defined in
20 IC 35-31.5-2-129).
21 SECTION 20. IC 15-15-13-19, AS ADDED BY P.L.190-2019,
22 SECTION 20, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
23 JULY 1, 2022]: Sec. 19. (a) Hemp bud (as defined in IC 35-48-1-17.2)
24 and hemp flower (as defined in IC 35-48-1-17.3) may be sold only to
25 a processor licensed under this chapter.
26 (b) The state seed commissioner cannabis compliance commission
27 may impose a civil penalty under section 13 of this chapter for a
28 violation of subsection (a).
29 SECTION 21. IC 15-15-13-20, AS ADDED BY P.L.190-2019,
30 SECTION 21, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
31 JULY 1, 2022]: Sec. 20. (a) A person who knowingly or intentionally
32 violates:
33 (1) a term, condition, or requirement of a license issued; or
34 (2) a rule adopted;
35 under this chapter is subject to a civil penalty, determined by the state
36 seed commissioner, cannabis compliance commission, not to exceed
37 ten thousand dollars ($10,000) per violation. The state seed
38 commissioner cannabis compliance commission may also revoke the
39 license of a person who violates this subsection.
40 (b) A person who knowingly or intentionally:
41 (1) grows hemp;
42 (2) handles hemp; or
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1 (3) sells agricultural hemp seed;
2 not including smokable hemp (as defined by IC 35-48-1-26.6), and is
3 not licensed under this chapter, commits a Class A misdemeanor.
4 SECTION 22. IC 15-16-2-36, AS AMENDED BY P.L.141-2018,
5 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
6 JULY 1, 2022]: Sec. 36. (a) Notwithstanding any other law, all excess
7 funds accumulated from the fees collected by:
8 (1) the state chemist, under this chapter, IC 15-15-2, IC 15-16-4,
9 IC 15-16-5, and IC 15-19-7; and
10 (2) the state seed commissioner under IC 15-15-1 and, before
11 July 1, 2022, IC 15-15-13; and
12 (3) after June 30, 2022, the cannabis compliance commission
13 under IC 15-15-13;
14 shall be paid to the treasurer of Purdue University. The funds shall be
15 administered by the board of trustees of Purdue University.
16 (b) On approval of the governor and the budget agency, the board
17 of trustees may spend the excess funds for the construction, operation,
18 rehabilitation, and repair of buildings, structures, or other facilities
19 used for:
20 (1) carrying out the purposes of those chapters referred to in
21 subsection (a) under which the fees are collected; or
22 (2) the agricultural programs authorized by law and in support of
23 the purposes of the chapters referred to in subsection (a).
24 SECTION 23. IC 24-4-21-1, AS AMENDED BY P.L.190-2019,
25 SECTION 23, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
26 JULY 1, 2022]: Sec. 1. The following definitions apply throughout this
27 chapter:
28 (1) "Cannabis compliance commission" means the cannabis
29 compliance commission established by IC 7.1-8-2-1.
30 (1) (2) "Certificate of analysis" means a certificate from an
31 independent testing laboratory describing the results of the
32 laboratory's testing of a sample.
33 (2) (3) "Independent testing laboratory" means a laboratory:
34 (A) with respect to which no person having a direct or indirect
35 interest in the laboratory also has a direct or indirect interest
36 in a facility that:
37 (i) processes, distributes, or sells low THC hemp extract, or
38 a substantially similar substance in another jurisdiction;
39 (ii) cultivates, processes, distributes, dispenses, or sells
40 marijuana; or
41 (iii) cultivates, processes, or distributes hemp; and
42 (B) that is accredited as a testing laboratory to International
2022 IN 1049—LS 6404/DI 77 19
1 Organization for Standardization (ISO) 17025 by a third party
2 accrediting body such as the American Association for
3 Laboratory Accreditation (A2LA) or Assured Calibration and
4 Laboratory Accreditation Select Services (ACLASS).
5 (3) (4) "Low THC hemp extract" has the meaning set forth in
6 IC 35-48-1-17.5.
7 SECTION 24. IC 24-4-21-1.5 IS ADDED TO THE INDIANA
8 CODE AS A NEW SECTION TO READ AS FOLLOWS
9 [EFFECTIVE JULY 1, 2022]: Sec. 1.5. (a) The cannabis compliance
10 commission shall administer and enforce this chapter.
11 (b) The cannabis compliance commission may:
12 (1) conduct inspections, review certifications, inspect
13 packaging, and engage in other enforcement actions to ensure
14 compliance with this chapter; and
15 (2) seek injunctions and impose civil penalties to enforce this
16 chapter.
17 SECTION 25. IC 24-4-21-5, AS ADDED BY P.L.153-2018,
18 SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
19 JULY 1, 2022]: Sec. 5. (a) This section applies after June 30, 2018.
20 (b) A person who distributes low THC hemp extract in violation of
21 this chapter commits a Class B infraction. However, the offense is a
22 Class A infraction if the person has a prior unrelated judgment for a
23 violation of this chapter.
24 (c) These The penalties described in this section are in addition to
25 any:
26 (1) criminal penalties that may be imposed for unlawful
27 possession or distribution of a controlled substance; or
28 (2) civil penalties or injunctive relief imposed by or sought by
29 the cannabis compliance commission.
30 SECTION 26. IC 24-4-22-1, AS AMENDED BY P.L.10-2019,
31 SECTION 106, IS AMENDED TO READ AS FOLLOWS
32 [EFFECTIVE JULY 1, 2022]: Sec. 1. As used in this chapter:
33 (1) "cannabis compliance commission" means the cannabis
34 compliance commission established by IC 7.1-8-2-1; and
35 (2) "low THC hemp extract" has the meaning set forth in
36 IC 35-48-1-17.5.
37 SECTION 27. IC 24-4-22-4, AS ADDED BY P.L.153-2018,
38 SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
39 JULY 1, 2022]: Sec. 4. (a) This section applies after June 30, 2018.
40 (b) A person who violates section 3 of this chapter commits a Class
41 C infraction. However, the violation is a Class B infraction if the
42 person has one (1) prior unrelated judgment for a violation of section
2022 IN 1049—LS 6404/DI 77 20
1 3 of this chapter, and a Class A infraction if the person has two (2) or
2 more prior unrelated judgments for a violation of section 3 of this
3 chapter.
4 (c) These The penalties described in this section are in addition to
5 any:
6 (1) criminal penalties that may be imposed for unlawful
7 possession or distribution of a controlled substance; or
8 (2) civil penalties or injunctive relief imposed by or sought by
9 the cannabis compliance commission.
10 SECTION 28. [EFFECTIVE JULY 1, 2022] (a) As used in this
11 SECTION, "cannabis compliance commission" means the cannabis
12 compliance commission established by IC 7.1-8-2-1, as added by
13 this act.
14 (b) On July 1, 2022, all powers, duties, agreements, and
15 liabilities of the state seed commissioner with respect to hemp and
16 industrial hemp are transferred to the cannabis compliance
17 commission, as the successor agency.
18 (c) On July 1, 2022, all records and property of the state seed
19 commissioner relating to hemp and industrial hemp, including
20 appropriations and other funds under the control or supervision of
21 the state seed commissioner that are designated for the hemp and
22 industrial hemp program, are transferred to the cannabis
23 compliance commission, as the successor agency.
24 (d) After June 30, 2022, any amounts owed to the state seed
25 commissioner before July 1, 2022, in connection with hemp and
26 industrial hemp are considered to be owed to the cannabis
27 compliance commission, as the successor agency.
28 (e) After June 30, 2022, a reference to the state seed
29 commissioner in a statute, rule, or other document related to
30 industrial hemp is considered a reference to the cannabis
31 compliance commission, as the successor agency.
32 (f) Any rules adopted under IC 15-11-15-3 or IC 15-15-13 by the
33 state seed commissioner before July 1, 2022, concerning hemp and
34 industrial hemp are considered, after June 30, 2022, rules of the
35 cannabis compliance commission.
36 (g) Proceedings relating to hemp and industrial hemp that are
37 pending before the state seed commissioner on July 1, 2022, shall
38 be transferred from the state seed commissioner to the cannabis
39 compliance commission and treated as if initiated by the cannabis
40 compliance commission.
41 (h) A license or permit relating to hemp and industrial hemp
42 that is issued by the state seed commissioner before July 1, 2022,
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1 shall be treated after June 30, 2022, as a license or permit issued by
2 the cannabis compliance commission.
3 (i) This SECTION expires July 1, 2023.
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