Indiana 2022 Regular Session

Indiana Senate Bill SB0175 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2	Introduced Version
3	3	SENATE BILL No. 175
4	4	_____
5	5	DIGEST OF INTRODUCED BILL
6	6	Citations Affected: IC 2-5-41.1; IC 6-7-3; IC 6-8.1-1-1; IC 6-11;
7	7	IC 7.1-8; IC 7.1-9; IC 35-48-4.
8	8	Synopsis: Medical cannabis. Defines "medical cannabis", specifies
9	9	that the term does not include smokable cannabis or cannabis mixed
10	10	with a food product, and permits the use of medical cannabis by a
11	11	person with a qualifying medical condition as determined by the
12	12	person's physician. Establishes a medical cannabis program (program)
13	13	to permit the cultivation, processing, testing, transportation, and
14	14	dispensing of medical cannabis by holders of a valid permit.
15	15	Establishes the Indiana cannabis commission (commission) as a state
16	16	agency to oversee, implement, and enforce the program, and
17	17	establishes the commission advisory committee to review the
18	18	effectiveness of the program. Requires that permit holders take steps
19	19	to prevent diversion of cannabis to unauthorized persons. Requires that
20	20	medical cannabis be properly labeled, placed in child resistant
21	21	packaging, and tested by an independent testing laboratory before
22	22	being made available for purchase. Prohibits packaging medical
23	23	cannabis in a manner that is appealing to children. Authorizes research
24	24	on medical cannabis in accordance with rules set forth by the
25	25	commission. Makes conforming amendments.
26	26	Effective: July 1, 2022.
27	27	Ford J.D.
28	28	January 10, 2022, read first time and referred to Committee on Commerce and Technology.
29	29	2022 IN 175—LS 6515/DI 106 Introduced
30	30	Second Regular Session of the 122nd General Assembly (2022)
31	31	PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
32	32	Constitution) is being amended, the text of the existing provision will appear in this style type,
33	33	additions will appear in this style type, and deletions will appear in this style type.
34	34	Additions: Whenever a new statutory provision is being enacted (or a new constitutional
35	35	provision adopted), the text of the new provision will appear in this style type. Also, the
36	36	word NEW will appear in that style type in the introductory clause of each SECTION that adds
37	37	a new provision to the Indiana Code or the Indiana Constitution.
38	38	Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
39	39	between statutes enacted by the 2021 Regular Session of the General Assembly.
40	40	SENATE BILL No. 175
41	41	A BILL FOR AN ACT to amend the Indiana Code concerning
42	42	criminal law and procedure.
43	43	Be it enacted by the General Assembly of the State of Indiana:
44	44	1 SECTION 1. IC 2-5-41.1 IS ADDED TO THE INDIANA CODE
45	45	2 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
46	46	3 JULY 1, 2022]:
47	47	4 Chapter 41.1. Medical Cannabis Advisory Committee
48	48	5 Sec. 1. The following definitions apply throughout this chapter:
49	49	6 (1) "Advisory committee" means the medical cannabis
50	50	7 advisory committee established by section 2 of this chapter.
51	51	8 (2) "Commission" means the Indiana cannabis commission
52	52	9 established by IC 7.1-9-2-1.
53	53	10 Sec. 2. The medical cannabis advisory committee is established.
54	54	11 Sec. 3. (a) The advisory committee consists of the following four
55	55	12 (4) voting members and five (5) nonvoting members:
56	56	13 (1) One (1) legislative member appointed by the speaker of the
57	57	14 house of representatives.
58	58	15 (2) One (1) legislative member appointed by the minority
59	59	16 leader of the house of representatives.
60	60	17 (3) One (1) legislative member appointed by the president pro
61	61	2022 IN 175—LS 6515/DI 106 2
62	62	1 tempore of the senate.
63	63	2 (4) One (1) legislative member appointed by the minority
64	64	3 leader of the senate.
65	65	4 (5) One (1) representative of law enforcement, appointed as a
66	66	5 nonvoting member by the speaker of the house of
67	67	6 representatives.
68	68	7 (6) One (1) individual having experience in the treatment of
69	69	8 medical conditions by means of medical cannabis as a patient,
70	70	9 physician, or caregiver, appointed as a nonvoting member by
71	71	10 the president pro tempore of the senate.
72	72	11 (7) The commissioner of the department of state revenue or
73	73	12 the commissioner's designee, who serves as a nonvoting
74	74	13 member.
75	75	14 (8) The director of the department of agriculture or the
76	76	15 director's designee, who serves as a nonvoting member.
77	77	16 (9) The state health commissioner or the commissioner's
78	78	17 designee, who serves as a nonvoting member.
79	79	18 (b) The chairperson of the legislative council shall annually
80	80	19 select one (1) of the voting members to serve as chairperson.
81	81	20 Sec. 4. (a) A legislative member of the advisory committee may
82	82	21 be removed at any time by the appointing authority who appointed
83	83	22 the legislative member.
84	84	23 (b) If a vacancy exists on the advisory committee, the appointing
85	85	24 authority who appointed the former member whose position has
86	86	25 become vacant shall appoint an individual to fill the vacancy.
87	87	26 Sec. 5. Each member of the advisory committee is entitled to
88	88	27 receive the same per diem, mileage, and travel allowances paid to
89	89	28 individuals who serve as legislative and lay members, respectively,
90	90	29 of interim study committees established by the legislative council.
91	91	30 Sec. 6. The affirmative votes of a majority of the voting
92	92	31 members appointed to the advisory committee are required for the
93	93	32 advisory committee to take action on any measure, including final
94	94	33 reports.
95	95	34 Sec. 7. The advisory committee shall do the following:
96	96	35 (1) Review rules adopted by the commission.
97	97	36 (2) Review legislative proposals suggested by the commission.
98	98	37 (3) Evaluate the medical cannabis research and development
99	99	38 program under IC 7.1-9-5.
100	100	39 (4) Evaluate the operation of the medical cannabis program.
101	101	40 (5) Consider any other matter that has bearing on the
102	102	41 operation of the medical cannabis program.
103	103	42 SECTION 2. IC 6-7-3 IS REPEALED [EFFECTIVE JULY 1, 2022].
104	104	2022 IN 175—LS 6515/DI 106 3
105	105	1 (Controlled Substance Excise Tax).
106	106	2 SECTION 3. IC 6-8.1-1-1, AS AMENDED BY P.L.165-2021,
107	107	3 SECTION 120, IS AMENDED TO READ AS FOLLOWS
108	108	4 [EFFECTIVE JULY 1, 2022]: Sec. 1. "Listed taxes" or "taxes" includes
109	109	5 only the pari-mutuel taxes (IC 4-31-9-3 through IC 4-31-9-5); the
110	110	6 supplemental wagering tax (IC 4-33-12); the riverboat wagering tax (IC
111	111	7 4-33-13); the slot machine wagering tax (IC 4-35-8); the type II
112	112	8 gambling game excise tax (IC 4-36-9); the gross income tax (IC 6-2.1)
113	113	9 (repealed); the utility receipts and utility services use taxes (IC 6-2.3);
114	114	10 the state gross retail and use taxes (IC 6-2.5); the adjusted gross income
115	115	11 tax (IC 6-3); the supplemental net income tax (IC 6-3-8) (repealed); the
116	116	12 county adjusted gross income tax (IC 6-3.5-1.1) (repealed); the county
117	117	13 option income tax (IC 6-3.5-6) (repealed); the county economic
118	118	14 development income tax (IC 6-3.5-7) (repealed); the local income tax
119	119	15 (IC 6-3.6); the auto rental excise tax (IC 6-6-9); the financial
120	120	16 institutions tax (IC 6-5.5); the gasoline tax (IC 6-6-1.1); the special fuel
121	121	17 tax (IC 6-6-2.5); the motor carrier fuel tax (IC 6-6-4.1); a motor fuel tax
122	122	18 collected under a reciprocal agreement under IC 6-8.1-3; the vehicle
123	123	19 excise tax (IC 6-6-5); the aviation fuel excise tax (IC 6-6-13); the
124	124	20 commercial vehicle excise tax (IC 6-6-5.5); the excise tax imposed on
125	125	21 recreational vehicles and truck campers (IC 6-6-5.1); the hazardous
126	126	22 waste disposal tax (IC 6-6-6.6) (repealed); the heavy equipment rental
127	127	23 excise tax (IC 6-6-15); the vehicle sharing excise tax (IC 6-6-16); the
128	128	24 cigarette tax (IC 6-7-1); the medical cannabis cultivation tax (IC
129	129	25 6-11); the closed system cartridge tax (IC 6-7-2-7.5); the electronic
130	130	26 cigarette tax (IC 6-7-4); the beer excise tax (IC 7.1-4-2); the liquor
131	131	27 excise tax (IC 7.1-4-3); the wine excise tax (IC 7.1-4-4); the hard cider
132	132	28 excise tax (IC 7.1-4-4.5); the petroleum severance tax (IC 6-8-1); the
133	133	29 various innkeeper's taxes (IC 6-9); the various food and beverage taxes
134	134	30 (IC 6-9); the county admissions tax (IC 6-9-13 and IC 6-9-28); the oil
135	135	31 inspection fee (IC 16-44-2); the penalties assessed for oversize vehicles
136	136	32 (IC 9-20-3 and IC 9-20-18); the fees and penalties assessed for
137	137	33 overweight vehicles (IC 9-20-4 and IC 9-20-18); and any other tax or
138	138	34 fee that the department is required to collect or administer.
139	139	35 SECTION 4. IC 6-11 IS ADDED TO THE INDIANA CODE AS A
140	140	36 NEW ARTICLE TO READ AS FOLLOWS [EFFECTIVE JULY 1,
141	141	37 2022]:
142	142	38 ARTICLE 11. MEDICAL CANNABIS CULTIVATION TAX
143	143	39 Chapter 1. Imposition and Collection of Tax
144	144	40 Sec. 1. The following definitions apply throughout this article:
145	145	41 (1)"Department" refers to the department of state revenue.
146	146	42 (2)"Dispensary" has the meaning set forth in IC 7.1-8-1.
147	147	2022 IN 175—LS 6515/DI 106 4
148	148	1 (3)"Integrated facility" has the meaning set forth in
149	149	2 IC 7.1-8-1.
150	150	3 (4)"Patient" has the meaning set forth in IC 7.1-8-1.
151	151	4 (5)"Person" has the meaning set forth in IC 6-2.5-1-3.
152	152	5 (6) "Processor" has the meaning set forth in IC 7.1-8-1.
153	153	6 Sec. 2. A tax is imposed upon the privilege of processing
154	154	7 cannabis at a rate of seven percent (7%) of the sales price per
155	155	8 ounce of cannabis. This tax shall be paid to the department by a
156	156	9 processor and by an integrated facility that processes cannabis,
157	157	10 and is not the responsibility of a grower, dispensary, or a
158	158	11 qualifying patient.
159	159	12 Sec. 3. (a) Every person subject to the tax under this article shall
160	160	13 remit the tax owed to the department before the fifteenth day of
161	161	14 the month following the month in which the cannabis is sold.
162	162	15 (b) The department shall prescribe the return to be filed for the
163	163	16 payment of the tax.
164	164	17 Sec. 4. The amounts received from the tax imposed by this
165	165	18 article shall be transferred by the auditor of state to the state
166	166	19 general fund.
167	167	20 Sec. 5. The department has full power to administer and enforce
168	168	21 this chapter, to collect all taxes and penalties due, and to dispose of
169	169	22 taxes and penalties so collected as provided by law. The tax is a
170	170	23 listed tax for purposes of IC 6-8.1.
171	171	24 Sec. 6. Except as otherwise provided in this article, a tax
172	172	25 imposed under this chapter shall be imposed, paid, and collected in
173	173	26 the same manner that the state gross retail tax is imposed, paid,
174	174	27 and collected under IC 6-2.5.
175	175	28 Sec. 7. The department shall adopt rules under IC 4-22-2 to
176	176	29 implement this article
177	177	30 SECTION 5. IC 7.1-8 IS ADDED TO THE INDIANA CODE AS A
178	178	31 NEW ARTICLE TO READ AS FOLLOWS [EFFECTIVE JULY 1,
179	179	32 2022]:
180	180	33 ARTICLE 8. MEDICAL CANNABIS
181	181	34 Chapter 1. Definitions
182	182	35 Sec. 1. The following definitions apply throughout this article:
183	183	36 (1) "Cannabis" means any part of the plant genus Cannabis.
184	184	37 However, the term does not include industrial hemp.
185	185	38 (2) "Caregiver" means the individual designated by a patient
186	186	39 under this article to obtain, possess, deliver, and assist in the
187	187	40 administration of medical cannabis to the patient.
188	188	41 (3) "Commission" means the Indiana cannabis commission
189	189	42 established by IC 7.1-9-2-1.
190	190	2022 IN 175—LS 6515/DI 106 5
191	191	1 (4) "Dispensary" means a person that holds a permit issued
192	192	2 by the commission to dispense medical cannabis.
193	193	3 (5) "Executive commission" means the commissioners
194	194	4 described in IC 7.1-9-2.
195	195	5 (6) "Family or household member" means a person described
196	196	6 in IC 35-31.5-2-128.
197	197	7 (7) "Form of medical cannabis" means the characteristics of
198	198	8 the medical cannabis recommended for a particular patient,
199	199	9 including the method of consumption, and any particular
200	200	10 dosage, strain, variety, quantity, or percentage of medical
201	201	11 cannabis or of a particular active ingredient.
202	202	12 (8) "Grower" means a person that holds a permit issued by
203	203	13 the commission to grow cannabis to be processed into medical
204	204	14 cannabis. The term includes a site or facility operated by a
205	205	15 grower to carry out the functions authorized by the permit.
206	206	16 (9) "Identification card" means a valid document issued to a
207	207	17 patient or caregiver by the commission authorizing access to
208	208	18 medical cannabis.
209	209	19 (10) "INSPECT" means the Indiana scheduled prescription
210	210	20 electronic collection and tracking program established by
211	211	21 IC 25-1-13-4.
212	212	22 (11) "Integrated facility" means a person that holds a permit
213	213	23 issued by the commission to perform, as specified by the
214	214	24 permit, the functions of at least two (2) of the following:
215	215	25 (A) a grower;
216	216	26 (B) a processor;
217	217	27 (C) a secure transporter; and
218	218	28 (D) a dispensary.
219	219	29 The term includes a site or facility operated by an integrated
220	220	30 facility to carry out functions authorized by the permit. An
221	221	31 integrated facility may not perform the function of a testing
222	222	32 laboratory.
223	223	33 (12) "Medical cannabis" means a product containing a
224	224	34 derivative of cannabis for medical use by a patient in the form
225	225	35 of any of the following, as determined by rule of the
226	226	36 commission:
227	227	37 (A) An oral tablet, capsule, or tincture.
228	228	38 (B) A nonsugarcoated, nonsweetened gelatinous cube,
229	229	39 gelatinous rectangular cuboid, or lozenge in a cube or
230	230	40 rectangular cuboid shape.
231	231	41 (C) A gel, oil, cream, or other topical preparation.
232	232	42 (D) A suppository.
233	233	2022 IN 175—LS 6515/DI 106 6
234	234	1 (E) A transdermal patch.
235	235	2 (F) A nebulizer.
236	236	3 (G) A liquid or oil for administration using an inhaler.
237	237	4 The term does not include raw plant material, a product
238	238	5 administered by smoking or vaping, or a food product that
239	239	6 has cannabis baked, mixed, or otherwise infused into the
240	240	7 product, such as cookies or candies.
241	241	8 (13) "Medical cannabis organization" means a dispensary, a
242	242	9 grower, a processor, a secure transporter, a testing
243	243	10 laboratory, or an integrated facility that holds a permit issued
244	244	11 by the commission.
245	245	12 (14) "Package" means a container that a processor uses for
246	246	13 enclosing and containing medical cannabis. The term does not
247	247	14 include a carryout bag or other similar container.
248	248	15 (15) "Patient" means an individual who:
249	249	16 (A) is an adult who:
250	250	17 (i) has a qualifying medical condition; and
251	251	18 (ii) otherwise meets the requirements to use medical
252	252	19 cannabis under this article; or
253	253	20 (B) is a child less than eighteen (18) years of age who:
254	254	21 (i) has a qualifying medical condition;
255	255	22 (ii) is permitted to receive medical cannabis under this
256	256	23 article with the assistance of a caregiver; and
257	257	24 (iii) otherwise meets the requirements to use medical
258	258	25 cannabis of this article.
259	259	26 (16) "Permit" means an authorization issued by the
260	260	27 commission to conduct activities under this article.
261	261	28 (17) "Physician certification" means authorization from a
262	262	29 physician for a patient to use medical cannabis.
263	263	30 (18) "Processor" means a person that holds a permit issued by
264	264	31 the commission to purchase cannabis from a grower and
265	265	32 extract derivatives from the cannabis to produce medical
266	266	33 cannabis for sale and transfer in packaged and labeled form
267	267	34 to a dispensary. The term includes a site or facility operated
268	268	35 by a processor to carry out functions authorized by the
269	269	36 permit.
270	270	37 (19) "Qualifying medical condition" means one (1) or more of
271	271	38 the following conditions, or symptoms of the following
272	272	39 conditions, if treatment with cannabis is the standard of care
273	273	40 for the condition, or if there is documented evidence that
274	274	41 conventional treatment or therapy has failed:
275	275	42 (A) Autism spectrum disorder (ASD).
276	276	2022 IN 175—LS 6515/DI 106 7
277	277	1 (B) Cancer related cachexia, nausea, vomiting, weight loss,
278	278	2 or chronic pain.
279	279	3 (C) Crohn's disease.
280	280	4 (D) Depression.
281	281	5 (E) Epilepsy or a condition causing seizures.
282	282	6 (F) HIV/AIDS related nausea or weight loss.
283	283	7 (G) Panic disorder.
284	284	8 (H) Parkinson's disease.
285	285	9 (I) Persistent nausea that is not significantly responsive to
286	286	10 traditional treatment, except for nausea related to
287	287	11 pregnancy, cannabis induced cyclical vomiting syndrome,
288	288	12 or cannabinoid hyperemesis syndrome.
289	289	13 (J) Posttraumatic stress disorder (PTSD).
290	290	14 (K) Sickle cell anemia.
291	291	15 (L) Spasticity associated with a motor neuron disease,
292	292	16 including amyotrophic lateral sclerosis.
293	293	17 (M) Spasticity associated with multiple sclerosis or a spinal
294	294	18 cord injury.
295	295	19 (N) A terminal illness.
296	296	20 (O) Tourette's syndrome.
297	297	21 (P) A condition causing chronic or intractable pain in
298	298	22 which conventional therapeutic intervention and opiate
299	299	23 therapy is contraindicated or has proved ineffective.
300	300	24 (20) "Secure transporter" means a person that holds a permit
301	301	25 issued by the commission to transport cannabis or medical
302	302	26 cannabis from one permitted facility or site to another
303	303	27 permitted facility or site. The term includes equipment
304	304	28 operated by a secure transporter to carry out functions
305	305	29 authorized by the permit.
306	306	30 (21) "Testing laboratory" means a laboratory that analyzes
307	307	31 medical cannabis.
308	308	32 Chapter 2. Medical Cannabis Program
309	309	33 Sec. 1. (a) The medical cannabis program is established to serve
310	310	34 patients suffering from a qualifying medical condition by
311	311	35 permitting the use of medical cannabis under specified conditions.
312	312	36 (b) The commission shall administer the program.
313	313	37 (c) The commission has regulatory and enforcement authority
314	314	38 over the growing, processing, sale, dispensing, transporting, and
315	315	39 use of medical cannabis. The commission additionally has
316	316	40 regulatory and enforcement authority over the use of cannabis for
317	317	41 medical research.
318	318	42 Sec. 2. The commission shall do the following:
319	319	2022 IN 175—LS 6515/DI 106 8
320	320	1 (1) Issue a permit to a qualifying medical cannabis
321	321	2 organization authorizing it to grow, process, dispense,
322	322	3 transport, or test medical cannabis.
323	323	4 (2) Establish and maintain an electronic data base to store
324	324	5 and track information relating to the medical cannabis
325	325	6 program. The data base must:
326	326	7 (A) have the ability to authenticate in real time an
327	327	8 identification card presented to a dispensary;
328	328	9 (B) track in real time the amount of cannabis provided to
329	329	10 a patient or caregiver at a dispensary, and share this
330	330	11 information in real time with other dispensaries to prevent
331	331	12 diversion;
332	332	13 (C) store records relating to a physician's certification,
333	333	14 including, if applicable, the recommended form of
334	334	15 cannabis and any early expiration date recommended by
335	335	16 the physician; and
336	336	17 (D) track the cultivation, processing, transport, storage,
337	337	18 and dispensing of medical cannabis.
338	338	19 (3) Maintain within the commission's data base an electronic
339	339	20 directory of patients and caregivers approved to use or assist
340	340	21 in the administration of medical cannabis.
341	341	22 (4) Develop enforcement procedures, including announced
342	342	23 and unannounced inspections of:
343	343	24 (A) a dispensary;
344	344	25 (B) a grower facility;
345	345	26 (C) a processor facility;
346	346	27 (D) a testing laboratory;
347	347	28 (E) a secure transporter;
348	348	29 (F) an integrated facility; and
349	349	30 (G) all records of a medical cannabis organization.
350	350	31 (5) Establish a program to authorize the use of medical
351	351	32 cannabis for medical research purposes, and issue documents
352	352	33 to permit a researcher to obtain medical cannabis for
353	353	34 research purposes.
354	354	35 (6) Establish and maintain public outreach programs about
355	355	36 the medical cannabis program, including:
356	356	37 (A) a dedicated telephone number for patients, caregivers,
357	357	38 and members of the public to obtain basic information
358	358	39 about the dispensing of medical cannabis; and
359	359	40 (B) a publicly accessible Internet web site containing
360	360	41 information similar to that described in clause (A).
361	361	42 (7) Collaborate as necessary with other state agencies, and
362	362	2022 IN 175—LS 6515/DI 106 9
363	363	1 contract with third parties as necessary to carry out the
364	364	2 medical cannabis program.
365	365	3 (8) Develop record keeping requirements for all books and
366	366	4 papers, any electronic data base or tracking system data, and
367	367	5 other information of a medical cannabis organization.
368	368	6 Information shall be retained for at least four (4) years unless
369	369	7 otherwise provided by the commission.
370	370	8 (9) Restrict the advertising and marketing of medical
371	371	9 cannabis, which must be consistent with the federal
372	372	10 regulations governing prescription drug advertising and
373	373	11 marketing.
374	374	12 Except as otherwise provided in this article, data and records
375	375	13 described in this section are confidential and may not be
376	376	14 transferred or sold.
377	377	15 Sec. 3. (a) The commission shall adopt rules under IC 4-22-2 to
378	378	16 implement this article.
379	379	17 (b) The commission may adopt emergency rules in the manner
380	380	18 provided under IC 4-22-2-37.1 to implement this article.
381	381	19 Emergency rules adopted under this subsection expire on the later
382	382	20 of:
383	383	21 (1) the date permanent rules are adopted to replace the
384	384	22 emergency rules; or
385	385	23 (2) July 1, 2024.
386	386	24 Sec. 4. (a) The commission shall maintain a confidential list of
387	387	25 patients and caregivers to whom it has issued identification cards.
388	388	26 Except as provided in subsection (b), all information obtained by
389	389	27 the commission relating to patients, caregivers, and other
390	390	28 applicants is confidential and may not be transferred or sold.
391	391	29 (b) The following records are public:
392	392	30 (1) An application for a permit submitted by a medical
393	393	31 cannabis organization.
394	394	32 (2) Information relating to penalties or other disciplinary
395	395	33 actions taken against a medical cannabis organization for
396	396	34 violation of this article.
397	397	35 Chapter 3. Use of Medical Cannabis
398	398	36 Sec. 1. Notwithstanding any law to the contrary, the use,
399	399	37 possession, delivery, distribution, transport, cultivation, or
400	400	38 manufacture of:
401	401	39 (1) medical cannabis; or
402	402	40 (2) cannabis used in connection with medical cannabis;
403	403	41 is lawful if the use or possession complies with this article.
404	404	42 However, this article does not authorize a person to operate a
405	405	2022 IN 175—LS 6515/DI 106 10
406	406	1 motor vehicle, a motorboat, or any other device or equipment
407	407	2 while under the influence of medical cannabis.
408	408	3 Sec. 2. The use of medical cannabis is subject to the following:
409	409	4 (1) Medical cannabis may be dispensed only to:
410	410	5 (A) an adult patient who receives a certification from a
411	411	6 physician and is in possession of a valid identification card
412	412	7 issued by the commission that authorizes dispensing
413	413	8 medical cannabis to the patient;
414	414	9 (B) a caregiver who possesses a valid identification card
415	415	10 issued by the commission and who is acting on behalf of a
416	416	11 patient; or
417	417	12 (C) a research facility authorized by the commission,
418	418	13 under terms and conditions established by the commission.
419	419	14 (2) Medical cannabis may not be dispensed to a patient less
420	420	15 than eighteen (18) years of age, but may be dispensed to the
421	421	16 patient's caregiver on behalf of the patient less than eighteen
422	422	17 (18) years of age.
423	423	18 (3) If a physician has ordered that medical cannabis be
424	424	19 dispensed in a specific form, medical cannabis may be
425	425	20 dispensed only in that form.
426	426	21 (4) An individual may not act as a caregiver for more than ten
427	427	22 (10) patients.
428	428	23 (5) A patient may designate up to two (2) caregivers at any
429	429	24 one (1) time.
430	430	25 (6) Medical cannabis that has not been used by the patient
431	431	26 shall be kept in the original package in which it was
432	432	27 dispensed.
433	433	28 (7) A patient or caregiver shall possess an identification card
434	434	29 whenever the patient or caregiver is in possession of medical
435	435	30 cannabis.
436	436	31 (8) A product packaged by a medical cannabis organization
437	437	32 may be identified only by:
438	438	33 (A) the name of the grower or processor;
439	439	34 (B) the name of the dispensary;
440	440	35 (C) the form and species of medical cannabis;
441	441	36 (D) the percentage of tetrahydrocannabinol and
442	442	37 cannabinol contained in the product; and
443	443	38 (E) any other labeling required by the commission.
444	444	39 Sec. 3. (a) Except as expressly permitted in this article, the
445	445	40 possession or use of medical cannabis is unlawful.
446	446	41 (b) In addition to any other penalty provided by law, the
447	447	42 unlawful possession or use of medical cannabis may be a crime
448	448	2022 IN 175—LS 6515/DI 106 11
449	449	1 under IC 35-48-4.
450	450	2 Chapter 4. Physicians
451	451	3 Sec. 1. (a) A physician who issues a physician certification under
452	452	4 this article may not have an ownership interest in a medical
453	453	5 cannabis organization.
454	454	6 (b) A physician may issue a certification to a patient only if the
455	455	7 physician:
456	456	8 (1) establishes and intends to maintain a bona fide physician
457	457	9 patient relationship with the patient for the provision of
458	458	10 medical services that is established by an in-person visit and
459	459	11 for which there is an expectation that the physician will
460	460	12 provide care to the patient on an ongoing basis; or
461	461	13 (2) establishes coordination with the patient's existing
462	462	14 primary physician for treatment of the patient's serious
463	463	15 medical condition.
464	464	16 (c) A physician who violates this section may be subject to
465	465	17 professional discipline.
466	466	18 Sec. 2. A physician may issue a certification to use medical
467	467	19 cannabis to a patient if the following requirements are met:
468	468	20 (1) The physician has determined that the patient has a
469	469	21 qualifying medical condition.
470	470	22 (2) The patient is under the physician's continuing care for the
471	471	23 serious medical condition, except as provided in section
472	472	24 1(b)(2) of this chapter.
473	473	25 (3) The physician has determined the patient is likely to
474	474	26 receive therapeutic or palliative benefit from the use of
475	475	27 medical cannabis.
476	476	28 Sec. 3. A physician issuing a certification under section 1(b)(2)
477	477	29 of this chapter may not issue a certification unless the physician
478	478	30 has contacted the patient's existing primary physician to discuss
479	479	31 the patient's qualifying medical condition and which form of
480	480	32 medical cannabis the patient is likely to benefit from.
481	481	33 Sec. 4. A certification must include the following information:
482	482	34 (1) The patient's name, date of birth, and address.
483	483	35 (2) The specific qualifying medical condition of the patient.
484	484	36 (3) A statement by the physician that the patient has a
485	485	37 qualifying medical condition and the patient is under
486	486	38 continuing care for the qualifying medical condition that is
487	487	39 provided by:
488	488	40 (A) the physician; or
489	489	41 (B) the patient's existing primary physician (as described
490	490	42 under section 1(b)(2) of this chapter).
491	491	2022 IN 175—LS 6515/DI 106 12
492	492	1 (4) The date of issuance.
493	493	2 (5) The name, address, telephone number, and signature of
494	494	3 the physician.
495	495	4 (6) Any requirement or limitation concerning the appropriate
496	496	5 form of medical cannabis, and any limitation on the duration
497	497	6 of use, if applicable.
498	498	7 Sec. 5. (a) A physician shall review INSPECT:
499	499	8 (1) to determine, before issuing a certification, the controlled
500	500	9 substance history of a patient; and
501	501	10 (2) before recommending a change of amount or form of
502	502	11 medical cannabis.
503	503	12 (b) A physician may access INSPECT to do any of the following:
504	504	13 (1) To determine whether a patient is under treatment with a
505	505	14 controlled substance by another physician or other person.
506	506	15 (2) To allow the physician to review the patient's controlled
507	507	16 substance history as considered necessary by the physician.
508	508	17 (3) To provide to the patient, or a caregiver on behalf of the
509	509	18 patient if authorized by the patient, a copy of the patient's
510	510	19 controlled substance history.
511	511	20 Sec. 6. A physician shall do the following:
512	512	21 (1) Provide the certification to the patient.
513	513	22 (2) Provide a copy of the certification to the commission,
514	514	23 which shall place the information in the patient directory
515	515	24 within the commission's electronic data base. The certification
516	516	25 may be transmitted to the commission electronically.
517	517	26 (3) File a copy of the certification in the patient's health care
518	518	27 record.
519	519	28 Sec. 7. A physician may not issue a certification for the
520	520	29 physician's own use or for the use of a family or household member
521	521	30 of the physician.
522	522	31 Chapter 5. Certification Form
523	523	32 Sec. 1. The commission shall develop a standard certification
524	524	33 form, which it shall provide to a physician upon request. The form
525	525	34 must be available electronically. The form must include a
526	526	35 statement that a false statement made by a physician is punishable
527	527	36 under the penalties of perjury.
528	528	37 Chapter 6. Patients
529	529	38 Sec. 1. The commission shall issue an identification card to a
530	530	39 patient who has a valid certification and who otherwise meets the
531	531	40 requirements of this article.
532	532	41 Sec. 2. The commission shall issue an identification card to a
533	533	42 caregiver designated by the patient in accordance with this article.
534	534	2022 IN 175—LS 6515/DI 106 13
535	535	1 Sec. 3. Except as provided in section 4 of this chapter, an
536	536	2 identification card issued to a patient authorizes the patient to
537	537	3 obtain and use medical cannabis as authorized by this article.
538	538	4 Except as provided in section 5 of this chapter, an identification
539	539	5 card issued to a caregiver authorizes the caregiver to obtain
540	540	6 medical cannabis for a patient.
541	541	7 Sec. 4. A patient who is less than eighteen (18) years of age may
542	542	8 not obtain medical cannabis from a dispensary. A caregiver may
543	543	9 obtain medical cannabis at a dispensary for use by a patient.
544	544	10 Sec. 5. A caregiver may not obtain medical cannabis from a
545	545	11 dispensary in a form that the patient who will use the medical
546	546	12 cannabis is not permitted to use.
547	547	13 Chapter 7. Identification Cards
548	548	14 Sec. 1. The commission shall do the following:
549	549	15 (1) Review applications for identification cards.
550	550	16 (2) Review certifications submitted by physicians.
551	551	17 (3) Issue identification cards to patients and caregivers.
552	552	18 (4) Note in the electronic data base if a patient identification
553	553	19 card may not be used to obtain medical cannabis from a
554	554	20 dispensary because the patient is less than eighteen (18) years
555	555	21 of age.
556	556	22 (5) Note in the electronic data base any restriction on the form
557	557	23 of cannabis that may be dispensed.
558	558	24 Sec. 2. A patient or a caregiver may apply, in a form and
559	559	25 manner prescribed by the commission, for issuance or renewal of
560	560	26 an identification card. A caregiver must submit a separate
561	561	27 application for issuance or renewal. Each application must include:
562	562	28 (1) the name, address, and date of birth of the patient;
563	563	29 (2) the name, address, and date of birth of a caregiver, if
564	564	30 applicable;
565	565	31 (3) a copy of the certification issued by the physician;
566	566	32 (4) the name, address, and telephone number of the physician;
567	567	33 (5) the signature of the applicant and the date signed; and
568	568	34 (6) any other information required by the commission.
569	569	35 Sec. 3. The fee to apply for or to renew an identification card is
570	570	36 fifty dollars ($50). The commission may waive or reduce the fee if
571	571	37 the applicant demonstrates financial hardship.
572	572	38 Sec. 4. The commission shall make application and renewal
573	573	39 forms available on the commission's Internet web site.
574	574	40 Sec. 5. (a) The identification card of a patient or caregiver
575	575	41 expires one (1) year after the date of issuance, unless a physician
576	576	42 has specified that a patient should use medical cannabis for less
577	577	2022 IN 175—LS 6515/DI 106 14
578	578	1 than one (1) year.
579	579	2 (b) If a physician has specified that a patient's use of medical
580	580	3 cannabis should be limited to certain forms of medical cannabis,
581	581	4 the permitted types of medical cannabis must be listed on the
582	582	5 identification card.
583	583	6 Sec. 6. (a) The commission shall issue separate identification
584	584	7 cards for a patient and a caregiver as soon as reasonably
585	585	8 practicable after receiving a properly completed application.
586	586	9 (b) If the commission determines that an application is
587	587	10 incomplete or factually inaccurate, the commission shall promptly
588	588	11 notify the applicant.
589	589	12 (c) If a patient application designates an individual as a
590	590	13 caregiver who is not authorized to be a caregiver, the commission
591	591	14 shall deny that portion of the application, but may approve the
592	592	15 balance of the application.
593	593	16 Sec. 7. (a) A patient or caregiver who has been issued an
594	594	17 identification card shall notify the commission not later than ten
595	595	18 (10) days after any change of name or address.
596	596	19 (b) A patient shall notify the commission within ten (10) days if
597	597	20 a physician has determined the patient no longer has the qualifying
598	598	21 medical condition noted on the certification.
599	599	22 Sec. 8. (a) If the identification card of a patient or caregiver is
600	600	23 lost, stolen, destroyed, or made illegible, the patient or caregiver
601	601	24 shall apply to the commission for a replacement card not later than
602	602	25 ten (10) days after discovery of the loss or defacement. The
603	603	26 application for a replacement card shall be on a form furnished by
604	604	27 the commission and accompanied by a twenty-five dollar ($25) fee.
605	605	28 The commission may establish higher fees for issuance of second
606	606	29 and subsequent replacement identification cards.
607	607	30 (b) The commission may waive or reduce the fee in cases of
608	608	31 demonstrated financial hardship.
609	609	32 (c) The commission shall issue a replacement identification card
610	610	33 as soon as practicable.
611	611	34 (d) A patient or caregiver may not obtain medical cannabis
612	612	35 from a dispensary until the commission issues the replacement
613	613	36 card.
614	614	37 Sec. 9. The identification card must contain the following
615	615	38 information:
616	616	39 (1) The name of the patient or caregiver, as applicable. The
617	617	40 identification card must also state whether the individual is
618	618	41 designated as a patient or as a caregiver.
619	619	42 (2) The date of issuance and expiration date.
620	620	2022 IN 175—LS 6515/DI 106 15
621	621	1 (3) A unique identification number for the patient or
622	622	2 caregiver, as applicable.
623	623	3 (4) A photograph of the individual to whom the identification
624	624	4 card is issued.
625	625	5 (5) Any requirement or limitation set by the physician as to
626	626	6 the form of medical cannabis.
627	627	7 (6) Any other requirements as determined by the commission.
628	628	8 However, the commission may not require that an
629	629	9 identification card disclose the patient's qualifying medical
630	630	10 condition.
631	631	11 The commission shall establish guidelines specifying an acceptable
632	632	12 photograph under subdivision (4) and shall provide a reasonable
633	633	13 accommodation for a patient who is confined to the patient's home
634	634	14 or is in inpatient care.
635	635	15 Sec. 10. The commission shall monthly transmit fees received
636	636	16 under this chapter to the auditor of state for deposit in the state
637	637	17 general fund.
638	638	18 Chapter 8. Caregivers
639	639	19 Sec. 1. (a) A caregiver must be at least eighteen (18) years of
640	640	20 age.
641	641	21 (b) However, a caregiver may be less than twenty-one (21) years
642	642	22 of age only if the commission determines that it is in the best
643	643	23 interests of the patient that a specific person less than twenty-one
644	644	24 (21) years of age serve as a caregiver.
645	645	25 Sec. 2. (a) A patient may terminate a person's designation as
646	646	26 caregiver at any time.
647	647	27 (b) The patient shall notify the commission that the patient has
648	648	28 terminated the person's caregiver designation as soon as
649	649	29 reasonably practicable after the termination.
650	650	30 (c) Upon learning that a patient has terminated a person's
651	651	31 caregiver designation, the commission shall cancel the caregiver's
652	652	32 identification card and notify the caregiver to return the physical
653	653	33 copy of the card.
654	654	34 Sec. 3. If a patient designates a caregiver, the caregiver may
655	655	35 submit an application for an identification card as a caregiver. The
656	656	36 caregiver application must include:
657	657	37 (1) the name, address, and date of birth of the caregiver;
658	658	38 (2) if the caregiver has an identification card for the caregiver
659	659	39 (as a patient) or another patient (as caregiver), the expiration
660	660	40 date of each identification card; and
661	661	41 (3) any other information required by the commission.
662	662	42 The application must be signed and dated by the caregiver
663	663	2022 IN 175—LS 6515/DI 106 16
664	664	1 applicant and verified under penalties of perjury.
665	665	2 Sec. 4. (a) Except as provided in subsection (c), before the
666	666	3 caregiver application is approved, the caregiver must authorize the
667	667	4 commission to perform a national criminal history background
668	668	5 check of the caregiver.
669	669	6 (b) The caregiver is responsible for the fee for the national
670	670	7 criminal history background check.
671	671	8 (c) The commission may conduct only one (1) national criminal
672	672	9 history background check of the caregiver per year.
673	673	10 Sec. 5. The caregiver shall pay an application fee of fifty dollars
674	674	11 ($50). The commission may waive or reduce the fee in cases of
675	675	12 demonstrated financial hardship.
676	676	13 Sec. 6. (a) After receiving the caregiver application, the fee, and
677	677	14 the results of the national criminal history background check, the
678	678	15 commission shall:
679	679	16 (1) verify the information contained in the application; and
680	680	17 (2) review INSPECT with respect to the applicant.
681	681	18 (b) The commission may deny a caregiver application if it finds
682	682	19 that the caregiver has:
683	683	20 (1) been convicted of a criminal offense within the previous
684	684	21 five (5) years relating to the sale or possession of a controlled
685	685	22 substance; or
686	686	23 (2) a history of drug abuse.
687	687	24 Sec. 7. The commission shall monthly transmit fees received
688	688	25 under this chapter to the auditor of state for deposit in the state
689	689	26 general fund.
690	690	27 Chapter 9. Minor Patients
691	691	28 Sec. 1. If a patient is less than eighteen (18) years of age, the
692	692	29 following apply:
693	693	30 (1) The patient must have a caregiver.
694	694	31 (2) The caregiver must be:
695	695	32 (A) the patient's parent or legal guardian;
696	696	33 (B) an individual designated by a parent or legal guardian;
697	697	34 or
698	698	35 (C) an appropriate individual approved by the commission
699	699	36 on a sufficient showing that no parent or legal guardian is
700	700	37 appropriate or available.
701	701	38 Chapter 10. Suspension
702	702	39 Sec. 1. If a patient or caregiver knowingly, intentionally, or
703	703	40 recklessly:
704	704	41 (1) violates any provision of this article; or
705	705	42 (2) transfers or sells medical cannabis to a person not
706	706	2022 IN 175—LS 6515/DI 106 17
707	707	1 qualified as a patient under this article;
708	708	2 the commission may suspend or revoke the patient's or caregiver's
709	709	3 identification card. The suspension or revocation is in addition to
710	710	4 any criminal or other penalty.
711	711	5 Chapter 11. General Prohibitions
712	712	6 Sec. 1. A person may not operate a motor vehicle, including a
713	713	7 motorboat, while under the influence of medical cannabis.
714	714	8 Sec. 2. A patient may not perform any employment duties in
715	715	9 exposed high places or in confined spaces while under the influence
716	716	10 of medical cannabis.
717	717	11 Sec. 3. A patient's employer may prohibit a patient from
718	718	12 performing any task while under the influence of medical cannabis.
719	719	13 The prohibition is not an adverse employment decision or unlawful
720	720	14 discrimination, even if the prohibition results in financial harm to
721	721	15 the patient.
722	722	16 Chapter 12. Medical Cannabis Organizations
723	723	17 Sec. 1. The following entities may receive a permit to operate as
724	724	18 a medical cannabis organization to grow, process, transport,
725	725	19 dispense, test, or transport medical cannabis (or, in the case of an
726	726	20 integrated facility, to perform one (1) or more functions described
727	727	21 in subdivisions (1), (2), (3), or (5)):
728	728	22 (1) A grower.
729	729	23 (2) A processor.
730	730	24 (3) A dispensary.
731	731	25 (4) A testing laboratory.
732	732	26 (5) A secure transporter.
733	733	27 (6) An integrated facility.
734	734	28 Sec. 2. A medical cannabis organization may not receive a
735	735	29 permit if a person having an ownership interest in the medical
736	736	30 cannabis organization has a felony conviction that has not been
737	737	31 expunged.
738	738	32 Sec. 3. (a) An entity described in section 1 of this chapter may
739	739	33 not hold an ownership interest in another entity described in
740	740	34 section 1 of this chapter.
741	741	35 (b) A person holding an ownership interest, directly or through
742	742	36 one (1) or more other entities, in an entity described in section 1 of
743	743	37 this chapter may not hold an ownership interest, directly or
744	744	38 through one (1) or more other entities, in another entity described
745	745	39 in section 1 of this chapter.
746	746	40 Sec. 4. (a) The commission shall develop an application for:
747	747	41 (1) a grower permit allowing the grower to grow medical
748	748	42 cannabis;
749	749	2022 IN 175—LS 6515/DI 106 18
750	750	1 (2) a dispensary permit allowing a dispensary to dispense
751	751	2 medical cannabis;
752	752	3 (3) a processor permit allowing a processor to process medical
753	753	4 cannabis;
754	754	5 (4) a testing laboratory permit allowing a testing laboratory
755	755	6 to test medical cannabis;
756	756	7 (5) a secure transporter permit allowing a person to transport
757	757	8 medical cannabis; and
758	758	9 (6) an integrated facility permit, allowing a person to perform
759	759	10 more than one (1) function described in this section.
760	760	11 (b) The following information must be included on the permit
761	761	12 application:
762	762	13 (1) The name, address, telephone number, and other contact
763	763	14 information for every person having an ownership interest in
764	764	15 the medical cannabis organization.
765	765	16 (2) Information relating to a similar permit, license, or other
766	766	17 authorization granted in another jurisdiction, including any
767	767	18 suspensions, revocations, or discipline in that jurisdiction.
768	768	19 (3) A release authorizing the commission to conduct a
769	769	20 background check of the persons having an ownership
770	770	21 interest in the medical cannabis organization.
771	771	22 (4) A statement as to whether the applicant intends to operate
772	772	23 as a grower, processor, or dispensary, and a concise
773	773	24 description of the business activities in which the medical
774	774	25 cannabis organization intends to engage.
775	775	26 (5) The address or other location where the medical cannabis
776	776	27 organization intends to operate.
777	777	28 (6) A statement that no person having an ownership interest
778	778	29 in the medical cannabis organization has a felony conviction
779	779	30 that has not been expunged.
780	780	31 (7) Any other information required by the commission.
781	781	32 (c) A permit application described in this section shall be
782	782	33 verified and completed subject to the penalties of perjury.
783	783	34 (d) An applicant shall submit the appropriate application and
784	784	35 permit fees at the time the applicant submits the application.
785	785	36 Chapter 13. Medical Cannabis Organization Permits
786	786	37 Sec. 1. Subject to the limits and conditions described in section
787	787	38 10 of this chapter, the commission may grant a medical cannabis
788	788	39 organization permit if the commission makes the following
789	789	40 findings:
790	790	41 (1) The applicant will maintain effective control of medical
791	791	42 cannabis in the custody of the applicant.
792	792	2022 IN 175—LS 6515/DI 106 19
793	793	1 (2) The applicant will comply with all state statutes, all rules
794	794	2 adopted by the commission, and any ordinances adopted by
795	795	3 a unit.
796	796	4 (3) The applicant has the ability to properly carry out the
797	797	5 activity for which the permit is sought.
798	798	6 (4) The applicant has sufficient financial means to acquire all
799	799	7 property, equipment, and permits required to properly grow,
800	800	8 process, or dispense medical cannabis.
801	801	9 (5) The applicant is able to implement and maintain
802	802	10 appropriate security, tracking, record keeping, and
803	803	11 surveillance systems relating to the acquisition, possession,
804	804	12 growth, manufacture, sale, delivery, transportation,
805	805	13 distribution, or dispensing of medical cannabis.
806	806	14 (6) The applicant satisfies any other conditions required
807	807	15 under rules adopted by the commission.
808	808	16 Sec. 2. If the commission finds that information included in the
809	809	17 application is insufficient for the commission to grant a permit to
810	810	18 the medical cannabis organization, the commission may request
811	811	19 that the applicant submit additional documentation relating to one
812	812	20 (1) or more items listed in section 1 of this chapter.
813	813	21 Sec. 3. (a) Except as provided under subsection (b), a permit
814	814	22 granted under this chapter is nontransferable.
815	815	23 (b) A permit holder may transfer a permit to a person
816	816	24 authorized to hold a permit in accordance with rules adopted by
817	817	25 the commission if:
818	818	26 (1) the permit holder has held the permit for at least
819	819	27 twenty-four (24) months; or
820	820	28 (2) the transfer is necessary due to the death or disability of
821	821	29 the permit holder or a similar severe hardship. For purposes
822	822	30 of this subdivision, financial hardship is not a severe hardship.
823	823	31 Sec. 4. A permit granted under this application is valid for one
824	824	32 (1) year after the date of issuance.
825	825	33 Sec. 5. (a) A permit may be renewed for one (1) or more
826	826	34 additional one (1) year periods.
827	827	35 (b) The commission shall establish deadlines for filing a renewal
828	828	36 application that provide the commission with sufficient time to
829	829	37 review the application without causing an interruption in the
830	830	38 medical cannabis organization's activities.
831	831	39 (c) The same standards that apply for granting an initial
832	832	40 application apply to an application for renewal. In determining
833	833	41 whether the renewal of a permit serves the public interest, the
834	834	42 commission shall consider the manner in which the renewal
835	835	2022 IN 175—LS 6515/DI 106 20
836	836	1 applicant has operated the medical cannabis organization and
837	837	2 complied with all relevant laws.
838	838	3 Sec. 6. A permit issued by the commission to a medical cannabis
839	839	4 organization must include the following information:
840	840	5 (1) The name and address of the medical cannabis
841	841	6 organization.
842	842	7 (2) The type of permit.
843	843	8 (3) The activities that are permitted under the permit.
844	844	9 (4) A description of the property and facilities authorized to
845	845	10 be used by the medical cannabis organization.
846	846	11 (5) Any other information required by the commission.
847	847	12 Sec. 7. The commission may suspend or revoke all or part of a
848	848	13 permit granted under this chapter if, following a hearing, the
849	849	14 commission finds the following:
850	850	15 (1) That one (1) or more of the determinations made under
851	851	16 section 1 of this chapter are no longer valid.
852	852	17 (2) That the medical cannabis organization knowingly or
853	853	18 intentionally sold or distributed medical cannabis to a person
854	854	19 not qualified as a patient or a caregiver under this article.
855	855	20 (3) That the medical cannabis organization has failed to
856	856	21 maintain effective control against diversion of medical
857	857	22 cannabis.
858	858	23 (4) That the medical cannabis organization has violated a
859	859	24 provision of this article or a rule adopted by the commission.
860	860	25 (5) That the medical cannabis organization has failed to
861	861	26 comply with another law regulating controlled substances.
862	862	27 Sec. 8. (a) An applicant for a medical cannabis organization
863	863	28 permit has a continuing duty to notify the commission of any
864	864	29 material change in facts or circumstances relating to the
865	865	30 applicant's application, including a change in ownership.
866	866	31 (b) An applicant's duty to notify the commission begins on the
867	867	32 date the applicant submits the application and continues for as long
868	868	33 as the applicant holds a permit.
869	869	34 Sec. 9. The commission may, upon request of a permit holder,
870	870	35 amend an existing permit to authorize a permit holder to:
871	871	36 (1) move the permit holder's operations from one (1) location
872	872	37 to another; or
873	873	38 (2) perform additional activities, or cease the performance of
874	874	39 certain activities now performed, at the permit holder's
875	875	40 facility;
876	876	41 if the commission finds that the amendment is reasonable under
877	877	42 the circumstances.
878	878	2022 IN 175—LS 6515/DI 106 21
879	879	1 Sec. 10. (a) The commission may issue not more than:
880	880	2 (1) thirteen (13) processor permits;
881	881	3 (2) forty (40) grower permits; and
882	882	4 (3) five (5) integrated facility permits.
883	883	5 (b) The commission shall ensure that, to the extent practicable:
884	884	6 (1) at least one (1) processor permit is issued for a facility
885	885	7 located in each geographical region described in
886	886	8 IC 10-11-2-5(d);
887	887	9 (2) at least three (3) grower permits are issued for cultivation
888	888	10 in each geographical region described in IC 10-11-2-5(d);
889	889	11 (3) no more than two (2) integrated facility permits are issued
890	890	12 for facilities located in the same geographical region
891	891	13 described in IC 10-11-2-5(d); and
892	892	14 (4) the persons receiving a permit reflect the diversity and
893	893	15 makeup of Indiana.
894	894	16 Sec. 11. (a) The commission may not issue a grower, processor,
895	895	17 or dispensary permit for a new facility located in a municipality
896	896	18 unless the governing body of the municipality has adopted an
897	897	19 ordinance or resolution authorizing operation of the facility.
898	898	20 (b) The commission may not issue a grower, processor, or
899	899	21 dispensary permit for a new facility located in an unincorporated
900	900	22 part of a county unless the governing body of the county has
901	901	23 adopted an ordinance or resolution authorizing operation of the
902	902	24 facility.
903	903	25 Chapter 14. General Duties of a Permit Holder
904	904	26 Sec. 1. The holder of a medical cannabis organization permit
905	905	27 must do the following:
906	906	28 (1) Report the loss, theft, or unexplained disappearance of
907	907	29 medical cannabis to a law enforcement agency not later than
908	908	30 twenty-four (24) hours after the loss, theft, or disappearance
909	909	31 is discovered.
910	910	32 (2) Permit announced or unannounced inspections by the
911	911	33 commission of all medical cannabis organization facilities and
912	912	34 records.
913	913	35 Chapter 15. Application and Permit Fees
914	914	36 Sec. 1. The following fees apply to a grower:
915	915	37 (1) A nonrefundable grower permit application fee of ten
916	916	38 thousand dollars ($10,000).
917	917	39 (2) A refundable grower permit fee of fifty thousand dollars
918	918	40 ($50,000).
919	919	41 (3) A refundable grower permit renewal fee of ten thousand
920	920	42 dollars ($10,000).
921	921	2022 IN 175—LS 6515/DI 106 22
922	922	1 (4) A nonrefundable permit amendment fee of two hundred
923	923	2 fifty dollars ($250).
924	924	3 Sec. 2. The following fees apply to a processor:
925	925	4 (1) A nonrefundable processor permit application fee of ten
926	926	5 thousand dollars ($10,000).
927	927	6 (2) A refundable processor permit fee of fifty thousand dollars
928	928	7 ($50,000).
929	929	8 (3) A refundable processor permit renewal fee of ten thousand
930	930	9 dollars ($10,000).
931	931	10 (4) A nonrefundable permit amendment fee of two hundred
932	932	11 fifty dollars ($250).
933	933	12 Sec. 3. The following fees apply to a dispensary:
934	934	13 (1) A nonrefundable dispensary permit application fee of five
935	935	14 thousand dollars ($5,000).
936	936	15 (2) A refundable dispensary permit fee of twenty thousand
937	937	16 dollars ($20,000) for each dispensary location.
938	938	17 (3) A refundable dispensary permit renewal fee of five
939	939	18 thousand dollars ($5,000) for each dispensary location.
940	940	19 (4) A nonrefundable permit amendment fee of two hundred
941	941	20 fifty dollars ($250).
942	942	21 Sec. 4. The following fees apply to a testing laboratory:
943	943	22 (1) A nonrefundable testing laboratory permit application fee
944	944	23 of two thousand dollars ($2,000).
945	945	24 (2) A refundable testing laboratory permit fee of ten thousand
946	946	25 dollars ($10,000) for each testing laboratory location.
947	947	26 (3) A refundable testing laboratory permit renewal fee of two
948	948	27 thousand dollars ($2,000) for each testing laboratory location.
949	949	28 (4) A nonrefundable permit amendment fee of two hundred
950	950	29 fifty dollars ($250).
951	951	30 Sec. 5. The following fees apply to a secure transporter:
952	952	31 (1) A nonrefundable secure transporter permit application fee
953	953	32 of two thousand dollars ($2,000).
954	954	33 (2) A refundable secure transporter permit fee of ten
955	955	34 thousand dollars ($10,000) for each secure transporter
956	956	35 location.
957	957	36 (3) A refundable secure transporter permit renewal fee of two
958	958	37 thousand dollars ($2,000) for each secure transporter
959	959	38 location.
960	960	39 (4) A nonrefundable permit amendment fee of two hundred
961	961	40 fifty dollars ($250).
962	962	41 Sec. 6. An applicant must submit the application fee and permit
963	963	42 fee at the time the applicant submits the application.
964	964	2022 IN 175—LS 6515/DI 106 23
965	965	1 Sec. 7. (a) The commission shall retain the application fee even
966	966	2 if the application is not approved.
967	967	3 (b) The commission shall refund the permit fee and renewal fee
968	968	4 if the permit or renewal is not approved. However, the permit fee
969	969	5 and renewal fee are not refundable if the permit is initially granted
970	970	6 but later suspended or revoked.
971	971	7 (c) The commission shall retain the amendment fee even if the
972	972	8 application for amendment is not approved.
973	973	9 Sec. 8. The commission shall transfer all fees to the auditor of
974	974	10 state for deposit in the state general fund.
975	975	11 Chapter 16. Tracking and Record Keeping
976	976	12 Sec. 1. (a) A medical cannabis organization must implement an
977	977	13 electronic inventory tracking system, which must be directly
978	978	14 accessible to the commission through an electronic data base that
979	979	15 is updated at least one (1) time each day.
980	980	16 (b) The electronic inventory tracking system must include the
981	981	17 following:
982	982	18 (1) For a grower, a seed to sale tracking system that tracks the
983	983	19 medical cannabis from seed to plant until the medical
984	984	20 cannabis is sold or transferred to its final destination.
985	985	21 (2) For a processor, a system that tracks medical cannabis
986	986	22 from its purchase from a grower to its transfer to a
987	987	23 dispensary, testing laboratory, secure transporter, or research
988	988	24 facility as authorized by this article.
989	989	25 (3) For a dispensary, a system that tracks medical cannabis
990	990	26 from its purchase from a grower or processor, its receipt from
991	991	27 a secure transporter, to its sale to a patient or caregiver or
992	992	28 transfer to a testing laboratory, research facility, grower,
993	993	29 secure transporter, or processor as authorized by this article.
994	994	30 (4) For a dispensary, a system to verify that an identification
995	995	31 card presented by a patient or caregiver:
996	996	32 (A) is valid; and
997	997	33 (B) authorizes the patient or caregiver to receive medical
998	998	34 cannabis from a dispensary.
999	999	35 (5) For a secure transporter, a system that tracks medical
1000	1000	36 cannabis from its loading to its delivery.
1001	1001	37 (6) For a medical cannabis organization, a:
1002	1002	38 (A) daily log of each day's beginning inventory,
1003	1003	39 acquisitions, amounts purchased and sold, disbursements,
1004	1004	40 disposals, and ending inventory, including prices paid and
1005	1005	41 amounts collected from patients and caregivers;
1006	1006	42 (B) system to recall defective medical cannabis; and
1007	1007	2022 IN 175—LS 6515/DI 106 24
1008	1008	1 (C) system to track the waste resulting from the growth of
1009	1009	2 medical cannabis, including the name and address of a
1010	1010	3 disposal service.
1011	1011	4 Sec. 2. A medical cannabis organization must implement a plan
1012	1012	5 for:
1013	1013	6 (1) security and surveillance; and
1014	1014	7 (2) record keeping and record retention.
1015	1015	8 Sec. 3. The commission:
1016	1016	9 (1) shall require a medical cannabis organization to make an
1017	1017	10 annual report to the commission; and
1018	1018	11 (2) may require a medical cannabis organization to make a
1019	1019	12 quarterly report to the commission.
1020	1020	13 The commission shall determine the form and contents of the
1021	1021	14 report and may make all or part of the report available to the
1022	1022	15 public.
1023	1023	16 Chapter 17. Grower Operations
1024	1024	17 Sec. 1. A person holding a grower permit may do all the
1025	1025	18 following in accordance with rules adopted by the commission:
1026	1026	19 (1) Obtain seed and plant material from another grower.
1027	1027	20 (2) Sell and transport seed and plant material to another
1028	1028	21 grower or processor.
1029	1029	22 (3) Sell cannabis to a processor or research facility authorized
1030	1030	23 by the commission, and transfer cannabis to a testing facility
1031	1031	24 authorized by the commission.
1032	1032	25 (4) Transfer cannabis to a secure transporter to transport the
1033	1033	26 medical cannabis for a purpose authorized under this section.
1034	1034	27 The commission may authorize a person holding a grower permit
1035	1035	28 to sell seed, plant material, and medical cannabis to a grower,
1036	1036	29 processor, dispensary, testing laboratory, or research facility in
1037	1037	30 another state.
1038	1038	31 Sec. 2. The commission shall determine the manner in which
1039	1039	32 medical cannabis may be grown, harvested, and stored at the
1040	1040	33 cultivation site.
1041	1041	34 Sec. 3. The commission shall determine the manner in which the
1042	1042	35 grower shall package or secure cannabis and medical cannabis
1043	1043	36 before transfer to a secure transporter for transport as follows:
1044	1044	37 (1) Requirements relating to shipping containers and
1045	1045	38 packaging.
1046	1046	39 (2) The manner in which trucks, vans, trailers, or other
1047	1047	40 carriers will be secured.
1048	1048	41 (3) Obtaining copies of driver's licenses and registrations and
1049	1049	42 other information related to security and tracking.
1050	1050	2022 IN 175—LS 6515/DI 106 25
1051	1051	1 (4) The use of a GPS tracking system.
1052	1052	2 (5) Record keeping requirements for delivery and receipt of
1053	1053	3 medical cannabis products.
1054	1054	4 Sec. 4. A grower shall contract with a testing laboratory
1055	1055	5 permittee to test the medical cannabis produced by the grower. If
1056	1056	6 a grower learns that the grower's sample has failed required
1057	1057	7 testing, the grower must take steps to remediate the harvest to
1058	1058	8 allowable levels under IC 7.1-8-20-3, or immediately dispose of the
1059	1059	9 harvest.
1060	1060	10 Chapter 18. Processor Operations
1061	1061	11 Sec. 1. A person holding a processor permit may do all the
1062	1062	12 following in accordance with rules adopted by the commission:
1063	1063	13 (1) Obtain cannabis plant material from a grower.
1064	1064	14 (2) Sell and transport cannabis to another grower or
1065	1065	15 processor.
1066	1066	16 (3) Sell and transport medical cannabis to a processor,
1067	1067	17 dispensary, testing laboratory, or research facility authorized
1068	1068	18 by the commission.
1069	1069	19 The commission may authorize a person holding a processor
1070	1070	20 permit to sell processed medical cannabis or unprocessed cannabis
1071	1071	21 to a grower, processor, dispensary, testing laboratory, or research
1072	1072	22 facility in another state.
1073	1073	23 Sec. 2. The commission shall determine the manner in which
1074	1074	24 cannabis and medical cannabis may be processed or stored at the
1075	1075	25 processor facility.
1076	1076	26 Sec. 3. The commission shall determine the manner in which the
1077	1077	27 processor shall package or secure cannabis and medical cannabis
1078	1078	28 before transfer to a secure transporter for transport. Rules
1079	1079	29 adopted by the commission must include the following:
1080	1080	30 (1) Requirements relating to shipping containers and
1081	1081	31 packaging.
1082	1082	32 (2) The manner in which trucks, vans, trailers, or other
1083	1083	33 carriers will be secured.
1084	1084	34 (3) Obtaining copies of driver's licenses and registrations and
1085	1085	35 other information related to security and tracking.
1086	1086	36 (4) The use of a GPS tracking system.
1087	1087	37 (5) Record keeping requirements for delivery and receipt of
1088	1088	38 medical cannabis products.
1089	1089	39 Sec. 4. A processor shall develop a plan to ensure that medical
1090	1090	40 cannabis products are properly labeled, are not packaged in a
1091	1091	41 manner that is appealing to children, and are placed in child
1092	1092	42 resistant packaging.
1093	1093	2022 IN 175—LS 6515/DI 106 26
1094	1094	1 Sec. 5. A processor shall include on its labeling of medical
1095	1095	2 cannabis products the following:
1096	1096	3 (1) The number of doses contained within the package, the
1097	1097	4 species, and the percentage of tetrahydrocannabinol and
1098	1098	5 cannabinol.
1099	1099	6 (2) A warning that the medical cannabis must be kept in the
1100	1100	7 original container in which it was dispensed.
1101	1101	8 (3) A warning that unauthorized use is unlawful and will
1102	1102	9 subject the person to criminal penalties.
1103	1103	10 (4) A list of ingredients.
1104	1104	11 (5) Any other information required by the commission.
1105	1105	12 Sec. 6. A processor shall contract with a testing laboratory
1106	1106	13 permittee to test the medical cannabis product produced by the
1107	1107	14 processor. If a processor learns that a sample submitted by the
1108	1108	15 processor has failed required testing, the processor must take steps
1109	1109	16 to remediate the product to allowable levels under IC 7.1-8-20-3,
1110	1110	17 or immediately dispose of the batch.
1111	1111	18 Chapter 19. Dispensary Operations
1112	1112	19 Sec. 1. A dispensary holding a valid permit under this article
1113	1113	20 may dispense medical cannabis to a patient or caregiver upon
1114	1114	21 presentation of a valid identification card for that patient or
1115	1115	22 caregiver and electronic verification that the identification card is
1116	1116	23 valid and authorizes the patient or caregiver to receive medical
1117	1117	24 cannabis from a dispensary.
1118	1118	25 Sec. 2. The dispensary shall provide to the patient or caregiver
1119	1119	26 a receipt including all of the following:
1120	1120	27 (1) The name and address of the dispensary.
1121	1121	28 (2) The name and address of the patient and caregiver (if
1122	1122	29 applicable).
1123	1123	30 (3) The date the medical cannabis was dispensed.
1124	1124	31 (4) Any requirement or limitation by the physician as to the
1125	1125	32 form of medical cannabis for the patient.
1126	1126	33 (5) The form and the quantity of medical cannabis dispensed.
1127	1127	34 Sec. 3. (a) For purposes of this section:
1128	1128	35 (1) eight (8) grams of concentrated medical cannabis; or
1129	1129	36 (2) eighty (80) ten (10) milligram doses of
1130	1130	37 tetrahydrocannabinol;
1131	1131	38 are equivalent to one (1) ounce of medical cannabis.
1132	1132	39 (b) A dispensary may not dispense:
1133	1133	40 (1) more than one (1) ounce of medical cannabis to a patient
1134	1134	41 (or caregiver on behalf of a specific patient) per day; or
1135	1135	42 (2) a form of medical cannabis that the patient is not
1136	1136	2022 IN 175—LS 6515/DI 106 27
1137	1137	1 permitted to use.
1138	1138	2 Sec. 4. The medical cannabis packaging must include the
1139	1139	3 following information:
1140	1140	4 (1) The number of doses contained within the package, the
1141	1141	5 species, and the percentage of tetrahydrocannabinol and
1142	1142	6 cannabinol.
1143	1143	7 (2) A warning that the medical cannabis must be kept in the
1144	1144	8 original container in which it was dispensed.
1145	1145	9 (3) A warning that unauthorized use is unlawful and will
1146	1146	10 subject the person to criminal penalties.
1147	1147	11 (4) Any other information required by the commission.
1148	1148	12 Sec. 5. A dispensary:
1149	1149	13 (1) may dispense medical cannabis only in an indoor,
1150	1150	14 enclosed, secure facility located in Indiana; and
1151	1151	15 (2) may sell services approved by the commission related to
1152	1152	16 the use of medical cannabis.
1153	1153	17 Sec. 6. A dispensary shall post a copy of its permit in a location
1154	1154	18 within its facility in a manner that is easily observable by the
1155	1155	19 public.
1156	1156	20 Sec. 7. A dispensary shall establish a plan to:
1157	1157	21 (1) prevent diversion of medical cannabis; and
1158	1158	22 (2) ensure a patient is not dispensed more than one (1) ounce
1159	1159	23 of medical cannabis per day.
1160	1160	24 Chapter 20. Testing Laboratory Operations
1161	1161	25 Sec. 1. A testing laboratory may test cannabis and medical
1162	1162	26 cannabis from a medical cannabis organization in accordance with
1163	1163	27 rules adopted by the commission if:
1164	1164	28 (1) it holds a valid permit issued under this article; or
1165	1165	29 (2) it is already accredited as a testing laboratory to
1166	1166	30 International Organization for Standardization (ISO) 17025
1167	1167	31 by a third party accrediting body such as the American
1168	1168	32 Association for Laboratory Accreditation (A2LA) or Assured
1169	1169	33 Calibration and Laboratory Accreditation Select Services
1170	1170	34 (ACLASS).
1171	1171	35 Sec. 2. A testing laboratory shall maintain policies and
1172	1172	36 procedures for the secure and proper analytical testing of cannabis
1173	1173	37 and medical cannabis, which must include:
1174	1174	38 (1) laboratory analysis techniques, including specific
1175	1175	39 instrumentation and protocols necessary to perform the tests
1176	1176	40 required by the commission;
1177	1177	41 (2) the implementation of standards and methods for
1178	1178	42 conducting analysis of forms of medical cannabis in
1179	1179	2022 IN 175—LS 6515/DI 106 28
1180	1180	1 accordance with the requirements of ISO/IEC 17025
1181	1181	2 "General Requirements for the Competence of Testing and
1182	1182	3 Calibration Laboratories"; and
1183	1183	4 (3) methods of testing to detect:
1184	1184	5 (A) potency levels of tetrahydrocannabinol and
1185	1185	6 cannabinol;
1186	1186	7 (B) microbials;
1187	1187	8 (C) mycotoxins;
1188	1188	9 (D) pesticides;
1189	1189	10 (E) residual solvents; and
1190	1190	11 (F) any other matter as required by the commission.
1191	1191	12 Sec. 3. The commission shall establish the allowable level of
1192	1192	13 microbials, mycotoxins, pesticides, residual solvents, and other
1193	1193	14 matter determined by the commission. If a sample received from
1194	1194	15 a grower or processor exceeds allowable levels, the testing
1195	1195	16 laboratory must immediately notify the grower or processor from
1196	1196	17 whom the testing laboratory received the sample.
1197	1197	18 Chapter 21. Secure Transporters
1198	1198	19 Sec. 1. A secure transporter may transport cannabis and
1199	1199	20 medical cannabis if the secure transporter complies with this
1200	1200	21 article.
1201	1201	22 Sec. 2. Cannabis and medical cannabis transported under this
1202	1202	23 article must be:
1203	1203	24 (1) packed in a tamper resistant and tamper evident package;
1204	1204	25 (2) clearly marked as to quantity and contents; and
1205	1205	26 (3) securely stored in the vehicle used for transport.
1206	1206	27 Sec. 3. The secure transporter shall proceed as directly and
1207	1207	28 expeditiously as practicable from the shipping location to the
1208	1208	29 receiving location.
1209	1209	30 Sec. 4. The person who ships the cannabis or medical cannabis
1210	1210	31 shall provide the secure transporter with a shipping manifest
1211	1211	32 clearly stating the:
1212	1212	33 (1) exact quantity of cannabis or medical cannabis that is
1213	1213	34 being transported;
1214	1214	35 (2) address of the shipping location;
1215	1215	36 (3) address of the receiving location;
1216	1216	37 (4) identification of the person transporting the material; and
1217	1217	38 (5) time the person transporting the material left the shipping
1218	1218	39 location.
1219	1219	40 Sec. 5. The secure transporter shall keep the shipping manifest
1220	1220	41 in the transporter's possession at all times.
1221	1221	42 Sec. 6. The commission may adopt rules to regulate the secure
1222	1222	2022 IN 175—LS 6515/DI 106 29
1223	1223	1 transport of cannabis and medical cannabis. The commission may
1224	1224	2 authorize a transporter to transport cannabis and medical
1225	1225	3 cannabis out of state.
1226	1226	4 Chapter 22. Integrated Facilities
1227	1227	5 Sec. 1. If and to the extent authorized by a permit issued by the
1228	1228	6 commission, an integrated facility may perform the functions of at
1229	1229	7 least two (2) of the following:
1230	1230	8 (1) A grower.
1231	1231	9 (2) A processor.
1232	1232	10 (3) A secure transporter.
1233	1233	11 (4) A dispensary.
1234	1234	12 An integrated facility may not perform the function of a testing
1235	1235	13 laboratory.
1236	1236	14 Sec. 2. Except as provided in section 3 of this chapter, a
1237	1237	15 requirement that applies to:
1238	1238	16 (1) a grower;
1239	1239	17 (2) a processor;
1240	1240	18 (3) a secure transporter; or
1241	1241	19 (4) a dispensary;
1242	1242	20 also applies to an integrated facility carrying out the functions of
1243	1243	21 that entity.
1244	1244	22 Sec. 3. (a) The commission may exempt an integrated facility
1245	1245	23 from a specific rule governing a grower, processor, secure
1246	1246	24 transporter, or dispensary, if following the rule would result in
1247	1247	25 needless duplication.
1248	1248	26 (b) The commission may adopt rules under IC 4-22-2 to regulate
1249	1249	27 an integrated facility.
1250	1250	28 Chapter 23. Reports
1251	1251	29 Sec. 1. The commission shall, not later than December 31 of
1252	1252	30 each year, submit a report concerning the medical cannabis
1253	1253	31 program to the legislative council, the governor, and the chief
1254	1254	32 justice of Indiana. The report to the legislative council must be in
1255	1255	33 an electronic format under IC 5-14-6.
1256	1256	34 Chapter 24. Civil Penalties
1257	1257	35 Sec. 1. The commission may assess a penalty of not more than
1258	1258	36 ten thousand dollars ($10,000) for each violation of this article or
1259	1259	37 a rule adopted under this article. In addition, the commission may
1260	1260	38 impose an additional penalty of not more than one thousand
1261	1261	39 dollars ($1,000) for each day of a continuing violation.
1262	1262	40 Sec. 2. (a) In determining the amount of a civil penalty imposed
1263	1263	41 under this chapter, the commission shall consider the following:
1264	1264	42 (1) The seriousness of the violation.
1265	1265	2022 IN 175—LS 6515/DI 106 30
1266	1266	1 (2) The potential harm resulting from the violation to
1267	1267	2 patients, caregivers, or the general public.
1268	1268	3 (3) The willfulness of the violation.
1269	1269	4 (4) Any previous violations.
1270	1270	5 (5) The economic benefit that accrued to the person who
1271	1271	6 committed the violation.
1272	1272	7 (b) If the commission finds that the:
1273	1273	8 (1) violation did not threaten the safety or health of a patient,
1274	1274	9 a caregiver, or the general public; and
1275	1275	10 (2) violator took immediate action to remedy the violation
1276	1276	11 upon learning of it;
1277	1277	12 the commission may issue a written warning instead of assessing a
1278	1278	13 civil penalty.
1279	1279	14 Sec. 3. In addition to the civil penalty described in this chapter,
1280	1280	15 and any other penalty authorized by law, the commission may
1281	1281	16 revoke or suspend a person's permit or identification card.
1282	1282	17 Chapter 25. Research
1283	1283	18 Sec. 1. The commission may provide assistance to universities,
1284	1284	19 research facilities, pharmaceutical companies, state agencies, and
1285	1285	20 similar entities that wish to conduct research concerning medical
1286	1286	21 cannabis.
1287	1287	22 Sec. 2. The commission may authorize persons conducting
1288	1288	23 research on medical cannabis to obtain, possess, transport, test,
1289	1289	24 and use medical cannabis for research purposes, under terms and
1290	1290	25 conditions established by the commission. The commission shall
1291	1291	26 issue appropriate documentation to allow persons to obtain
1292	1292	27 medical cannabis for research purposes.
1293	1293	28 Chapter 26. Use of Medical Cannabis Inadmissible
1294	1294	29 Sec. 1. A person's use of medical cannabis under this article is
1295	1295	30 not admissible as evidence against an employer in an action for
1296	1296	31 negligent hiring.
1297	1297	32 SECTION 6. IC 7.1-9 IS ADDED TO THE INDIANA CODE AS A
1298	1298	33 NEW ARTICLE TO READ AS FOLLOWS [EFFECTIVE JULY 1,
1299	1299	34 2022]:
1300	1300	35 ARTICLE 9. INDIANA CANNABIS COMMISSION
1301	1301	36 Chapter 1. Definitions
1302	1302	37 Sec. 1. The definitions in IC 7.1-8-1-1 apply throughout this
1303	1303	38 article.
1304	1304	39 Chapter 2. General Provisions
1305	1305	40 Sec. 1. The Indiana cannabis commission (commission) is
1306	1306	41 established as an agency of the state for purposes of administering
1307	1307	42 the medical cannabis program. The commission consists of the
1308	1308	2022 IN 175—LS 6515/DI 106 31
1309	1309	1 executive commission, an executive director hired by the executive
1310	1310	2 commission to oversee the day to day operations of the
1311	1311	3 commissions, and other employees employed by the commission.
1312	1312	4 Sec. 2. (a) The executive commission shall supervise and oversee
1313	1313	5 the operations of the commission. The executive commission
1314	1314	6 consists of the following commissioners:
1315	1315	7 (1) A physician licensed under IC 25-22.5, appointed by the
1316	1316	8 governor.
1317	1317	9 (2) A physician licensed under IC 25-22.5 who is primarily
1318	1318	10 engaged in pediatric medicine, appointed by the governor.
1319	1319	11 (3) A pharmacist licensed under IC 25-26, appointed by the
1320	1320	12 governor.
1321	1321	13 (4) An attorney licensed to practice law in Indiana with
1322	1322	14 experience in health care law, appointed by the governor.
1323	1323	15 (5) A biochemist, appointed by the governor.
1324	1324	16 (6) A banker or broker with experience in agricultural
1325	1325	17 lending, appointed by the governor.
1326	1326	18 (7) The state seed commissioner or the commissioner's
1327	1327	19 designee.
1328	1328	20 (8) The state health commissioner or the commissioner's
1329	1329	21 designee.
1330	1330	22 (9) The attorney general or the attorney general's designee,
1331	1331	23 who serves as a nonvoting member.
1332	1332	24 (10) The superintendent of the state police department or the
1333	1333	25 superintendent's designee, who serves as a nonvoting member.
1334	1334	26 (b) No more than three (3) of the commissioners described in
1335	1335	27 subsection (a)(1) through (a)(6) may be members of the same
1336	1336	28 political party. Each commissioner described in subsection (a)(1)
1337	1337	29 through (a)(6):
1338	1338	30 (1) serves a four (4) year term;
1339	1339	31 (2) serves at the pleasure of the governor; and
1340	1340	32 (3) may be reappointed.
1341	1341	33 (c) A commissioner described in subsection (a)(7) through
1342	1342	34 (a)(10) serves ex officio.
1343	1343	35 Sec. 3. To be eligible for appointment as a commissioner under
1344	1344	36 section 2(a)(1) through 2(a)(6), an individual must have the
1345	1345	37 following qualifications:
1346	1346	38 (1) The individual may not be employed by the state in any
1347	1347	39 other capacity.
1348	1348	40 (2) The individual must have good moral character.
1349	1349	41 (3) The individual must have been a resident of Indiana for at
1350	1350	42 least ten (10) years immediately preceding the appointment.
1351	1351	2022 IN 175—LS 6515/DI 106 32
1352	1352	1 Sec. 4. The governor shall appoint one (1) voting commissioner
1353	1353	2 to serve as chairperson of the executive commission and one (1)
1354	1354	3 voting commissioner to serve as vice chairperson. The vice
1355	1355	4 chairperson shall act as the chairperson if the chairperson is
1356	1356	5 unable to attend a meeting of the executive commission.
1357	1357	6 Sec. 5. A commissioner appointed to fill a vacancy in the
1358	1358	7 membership of the executive commission shall serve only for the
1359	1359	8 unexpired part of the original, vacated term. In all other respects,
1360	1360	9 an appointment to fill a vacancy shall be made in the same manner
1361	1361	10 that an original appointment is made.
1362	1362	11 Sec. 6. As compensation for services, each commissioner is
1363	1363	12 entitled to the minimum salary per diem provided by
1364	1364	13 IC 4-10-11-2.1(b). A commissioner is also entitled to
1365	1365	14 reimbursement for traveling expenses as provided under
1366	1366	15 IC 4-13-1-4 and other expenses actually incurred in connection
1367	1367	16 with the commissioner's duties as provided in the state policies and
1368	1368	17 procedures established by the department of administration and
1369	1369	18 approved by the budget agency.
1370	1370	19 Sec. 7. The executive commission shall hold meetings at the call
1371	1371	20 of the chairperson. The executive commission may establish rules
1372	1372	21 governing meetings, including rules for meetings of subcommittees
1373	1373	22 or working groups.
1374	1374	23 Sec. 8. A majority of voting commissioners constitutes a quorum
1375	1375	24 for the transaction of business.
1376	1376	25 Sec. 9. A commissioner may not solicit or accept a political
1377	1377	26 contribution from a patient, caregiver, or any individual or entity
1378	1378	27 that has a permit or has applied for a permit issued by the
1379	1379	28 commission. However, the right of a commissioner to vote as the
1380	1380	29 commissioner chooses and to express the commissioner's opinions
1381	1381	30 on political subjects and candidates may not be impaired.
1382	1382	31 Chapter 3. Employees and Administration
1383	1383	32 Sec. 1. (a) The executive commission shall appoint an executive
1384	1384	33 director to assist the commission in the efficient administration of
1385	1385	34 its powers and duties.
1386	1386	35 (b) The executive commission shall fix the salary of the executive
1387	1387	36 director, subject to the approval of the budget agency.
1388	1388	37 Sec. 2. The commission has the power to employ all necessary
1389	1389	38 employees, determine their duties, and, subject to the approval of
1390	1390	39 the executive commission and the budget agency, fix their salaries.
1391	1391	40 Chapter 4. Powers and Duties
1392	1392	41 Sec. 1. The chairperson is the presiding officer at the meetings
1393	1393	42 of the executive commission. The chairperson, together with the
1394	1394	2022 IN 175—LS 6515/DI 106 33
1395	1395	1 executive director, shall prepare, certify, and authenticate all
1396	1396	2 proceedings, minutes, records, rules, and regulations of the
1397	1397	3 executive commission. The chairperson shall also perform all other
1398	1398	4 duties as imposed on the chairperson by this title.
1399	1399	5 Sec. 2. The commission has the power to organize its work, to
1400	1400	6 enforce and administer this article and IC 7.1-8, and to enforce and
1401	1401	7 administer the rules adopted by the commission.
1402	1402	8 Sec. 3. The commission shall adopt rules under IC 4-22-2 to
1403	1403	9 prescribe the forms for all applications, documents, permits,
1404	1404	10 medical cannabis identification cards, and licenses used in the
1405	1405	11 administration of this article and IC 7.1-8.
1406	1406	12 Sec. 4. The commission has the following powers:
1407	1407	13 (1) To hold hearings before the commission or its
1408	1408	14 representative.
1409	1409	15 (2) To take testimony and receive evidence.
1410	1410	16 (3) To conduct inquiries with or without a hearing.
1411	1411	17 (4) To receive reports of investigators or other governmental
1412	1412	18 officers and employees.
1413	1413	19 (5) To administer oaths.
1414	1414	20 (6) To subpoena witnesses and to compel them to appear and
1415	1415	21 testify.
1416	1416	22 (7) To certify copies of records of the commission or any other
1417	1417	23 document or record on file with the commission.
1418	1418	24 (8) To fix the form, mode, manner, time, and number of times
1419	1419	25 for the posting or publication of any required notices if not
1420	1420	26 otherwise provided.
1421	1421	27 (9) To adopt rules under IC 4-22-2 to carry out this article
1422	1422	28 and IC 7.1-8.
1423	1423	29 Sec. 5. The commission has the following duties:
1424	1424	30 (1) To establish the medical cannabis program described in
1425	1425	31 IC 7.1-8 and to adopt all necessary rules to implement the
1426	1426	32 program.
1427	1427	33 (2) To implement protocols for the application and issuance
1428	1428	34 of a medical cannabis identification card, including protocols
1429	1429	35 to:
1430	1430	36 (A) prevent fraud;
1431	1431	37 (B) ensure the accuracy of information contained in the
1432	1432	38 application; and
1433	1433	39 (C) protect the privacy of an applicant.
1434	1434	40 (3) To advise the general assembly concerning the medical
1435	1435	41 cannabis program.
1436	1436	42 (4) To encourage research concerning medical cannabis.
1437	1437	2022 IN 175—LS 6515/DI 106 34
1438	1438	1 Chapter 5. Research and Development
1439	1439	2 Sec. 1. To permit and encourage research concerning medical
1440	1440	3 cannabis:
1441	1441	4 (1) an accredited institution of higher education with a
1442	1442	5 physical presence in Indiana;
1443	1443	6 (2) a pharmaceutical or agricultural business having a
1444	1444	7 research facility in Indiana;
1445	1445	8 (3) a research facility located in Indiana;
1446	1446	9 (4) a state agency; and
1447	1447	10 (5) a similar entity that wishes to conduct research;
1448	1448	11 may apply to the commission for a license to conduct research
1449	1449	12 concerning medical cannabis.
1450	1450	13 Sec. 2. An application under this chapter must include the
1451	1451	14 following:
1452	1452	15 (1) The nature of the research project.
1453	1453	16 (2) The names of the individuals who will conduct the
1454	1454	17 research project.
1455	1455	18 (3) The approximate quantity of cannabis that will be used in
1456	1456	19 the research project.
1457	1457	20 (4) The security protocol to be implemented to ensure that
1458	1458	21 cannabis is not diverted for uses other than the research
1459	1459	22 project.
1460	1460	23 (5) Any other information required by the commission.
1461	1461	24 Sec. 3. Upon receipt of a completed application, the commission
1462	1462	25 may issue a research license to the entity. The research license
1463	1463	26 must specifically list the names of each individual participating in
1464	1464	27 the research project who will have custody or control of cannabis
1465	1465	28 for research purposes and the approximate quantity of the
1466	1466	29 cannabis that will be used in the research project.
1467	1467	30 Sec. 4. The commission may charge a reasonable fee for issuance
1468	1468	31 of a research license.
1469	1469	32 SECTION 7. IC 35-48-4-10, AS AMENDED BY P.L.153-2018,
1470	1470	33 SECTION 25, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
1471	1471	34 JULY 1, 2022]: Sec. 10. (a) A person who:
1472	1472	35 (1) knowingly or intentionally:
1473	1473	36 (A) manufactures;
1474	1474	37 (B) finances the manufacture of;
1475	1475	38 (C) delivers; or
1476	1476	39 (D) finances the delivery of;
1477	1477	40 marijuana, hash oil, hashish, or salvia, pure or adulterated; or
1478	1478	41 (2) possesses, with intent to:
1479	1479	42 (A) manufacture;
1480	1480	2022 IN 175—LS 6515/DI 106 35
1481	1481	1 (B) finance the manufacture of;
1482	1482	2 (C) deliver; or
1483	1483	3 (D) finance the delivery of;
1484	1484	4 marijuana, hash oil, hashish, or salvia, pure or adulterated;
1485	1485	5 commits dealing in marijuana, hash oil, hashish, or salvia, a Class A
1486	1486	6 misdemeanor, except as provided in subsections (b) through (d).
1487	1487	7 (b) A person may be convicted of an offense under subsection (a)(2)
1488	1488	8 only if:
1489	1489	9 (1) there is evidence in addition to the weight of the drug that the
1490	1490	10 person intended to manufacture, finance the manufacture of,
1491	1491	11 deliver, or finance the delivery of the drug; or
1492	1492	12 (2) the amount of the drug involved is at least:
1493	1493	13 (A) ten (10) pounds, if the drug is marijuana; or
1494	1494	14 (B) three hundred (300) grams, if the drug is hash oil, hashish,
1495	1495	15 or salvia.
1496	1496	16 (c) The offense is a Level 6 felony if:
1497	1497	17 (1) the person has a prior conviction for a drug offense and the
1498	1498	18 amount of the drug involved is:
1499	1499	19 (A) less than thirty (30) grams of marijuana; or
1500	1500	20 (B) less than five (5) grams of hash oil, hashish, or salvia; or
1501	1501	21 (2) the amount of the drug involved is:
1502	1502	22 (A) at least thirty (30) grams but less than ten (10) pounds of
1503	1503	23 marijuana; or
1504	1504	24 (B) at least five (5) grams but less than three hundred (300)
1505	1505	25 grams of hash oil, hashish, or salvia.
1506	1506	26 (d) The offense is a Level 5 felony if:
1507	1507	27 (1) the person has a prior conviction for a drug dealing offense
1508	1508	28 and the amount of the drug involved is:
1509	1509	29 (A) at least thirty (30) grams but less than ten (10) pounds of
1510	1510	30 marijuana; or
1511	1511	31 (B) at least five (5) grams but less than three hundred (300)
1512	1512	32 grams of hash oil, hashish, or salvia;
1513	1513	33 (2) the:
1514	1514	34 (A) amount of the drug involved is:
1515	1515	35 (i) at least ten (10) pounds of marijuana; or
1516	1516	36 (ii) at least three hundred (300) grams of hash oil, hashish,
1517	1517	37 or salvia; or
1518	1518	38 (B) offense involved a sale to a minor; or
1519	1519	39 (3) the:
1520	1520	40 (A) person is a retailer;
1521	1521	41 (B) marijuana, hash oil, hashish, or salvia is packaged in a
1522	1522	42 manner that appears to be low THC hemp extract; and
1523	1523	2022 IN 175—LS 6515/DI 106 36
1524	1524	1 (C) person knew or reasonably should have known that the
1525	1525	2 product was marijuana, hash oil, hashish, or salvia.
1526	1526	3 (e) This section does not apply to a patient, caregiver, medical
1527	1527	4 cannabis organization, or researcher described in IC 7.1-8 if the
1528	1528	5 person is in substantial compliance with the requirements of
1529	1529	6 IC 7.1-8.
1530	1530	7 SECTION 8. IC 35-48-4-11, AS AMENDED BY P.L.153-2018,
1531	1531	8 SECTION 26, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
1532	1532	9 JULY 1, 2022]: Sec. 11. (a) A person who:
1533	1533	10 (1) knowingly or intentionally possesses (pure or adulterated)
1534	1534	11 marijuana, hash oil, hashish, or salvia;
1535	1535	12 (2) knowingly or intentionally grows or cultivates marijuana; or
1536	1536	13 (3) knowing that marijuana is growing on the person's premises,
1537	1537	14 fails to destroy the marijuana plants;
1538	1538	15 commits possession of marijuana, hash oil, hashish, or salvia, a Class
1539	1539	16 B misdemeanor, except as provided in subsections (b) through (c).
1540	1540	17 (b) The offense described in subsection (a) is a Class A
1541	1541	18 misdemeanor if:
1542	1542	19 (1) the person has a prior conviction for a drug offense; or
1543	1543	20 (2) the:
1544	1544	21 (A) marijuana, hash oil, hashish, or salvia is packaged in a
1545	1545	22 manner that appears to be low THC hemp extract; and
1546	1546	23 (B) person knew or reasonably should have known that the
1547	1547	24 product was marijuana, hash oil, hashish, or salvia.
1548	1548	25 (c) The offense described in subsection (a) is a Level 6 felony if:
1549	1549	26 (1) the person has a prior conviction for a drug offense; and
1550	1550	27 (2) the person possesses:
1551	1551	28 (A) at least thirty (30) grams of marijuana; or
1552	1552	29 (B) at least five (5) grams of hash oil, hashish, or salvia.
1553	1553	30 (d) This section does not apply to a patient, caregiver, medical
1554	1554	31 cannabis organization, or researcher described in IC 7.1-8 if the
1555	1555	32 person is in substantial compliance with the requirements of
1556	1556	33 IC 7.1-8.
1557	1557	2022 IN 175—LS 6515/DI 106