Introduced Version
SENATE BILL No. 175
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 2-5-41.1; IC 6-7-3; IC 6-8.1-1-1; IC 6-11;
IC 7.1-8; IC 7.1-9; IC 35-48-4.
Synopsis: Medical cannabis. Defines "medical cannabis", specifies
that the term does not include smokable cannabis or cannabis mixed
with a food product, and permits the use of medical cannabis by a
person with a qualifying medical condition as determined by the
person's physician. Establishes a medical cannabis program (program)
to permit the cultivation, processing, testing, transportation, and
dispensing of medical cannabis by holders of a valid permit.
Establishes the Indiana cannabis commission (commission) as a state
agency to oversee, implement, and enforce the program, and
establishes the commission advisory committee to review the
effectiveness of the program. Requires that permit holders take steps
to prevent diversion of cannabis to unauthorized persons. Requires that
medical cannabis be properly labeled, placed in child resistant
packaging, and tested by an independent testing laboratory before
being made available for purchase. Prohibits packaging medical
cannabis in a manner that is appealing to children. Authorizes research
on medical cannabis in accordance with rules set forth by the
commission. Makes conforming amendments.
Effective: July 1, 2022.
Ford J.D.
January 10, 2022, read first time and referred to Committee on Commerce and Technology.
2022 IN 175—LS 6515/DI 106 Introduced
Second Regular Session of the 122nd General Assembly (2022)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
Constitution) is being amended, the text of the existing provision will appear in this style type,
additions will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional
provision adopted), the text of the new provision will appear in this style type. Also, the
word NEW will appear in that style type in the introductory clause of each SECTION that adds
a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
between statutes enacted by the 2021 Regular Session of the General Assembly.
SENATE BILL No. 175
A BILL FOR AN ACT to amend the Indiana Code concerning
criminal law and procedure.
Be it enacted by the General Assembly of the State of Indiana:
1 SECTION 1. IC 2-5-41.1 IS ADDED TO THE INDIANA CODE
2 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
3 JULY 1, 2022]:
4 Chapter 41.1. Medical Cannabis Advisory Committee
5 Sec. 1. The following definitions apply throughout this chapter:
6 (1) "Advisory committee" means the medical cannabis
7 advisory committee established by section 2 of this chapter.
8 (2) "Commission" means the Indiana cannabis commission
9 established by IC 7.1-9-2-1.
10 Sec. 2. The medical cannabis advisory committee is established.
11 Sec. 3. (a) The advisory committee consists of the following four
12 (4) voting members and five (5) nonvoting members:
13 (1) One (1) legislative member appointed by the speaker of the
14 house of representatives.
15 (2) One (1) legislative member appointed by the minority
16 leader of the house of representatives.
17 (3) One (1) legislative member appointed by the president pro
2022 IN 175—LS 6515/DI 106 2
1 tempore of the senate.
2 (4) One (1) legislative member appointed by the minority
3 leader of the senate.
4 (5) One (1) representative of law enforcement, appointed as a
5 nonvoting member by the speaker of the house of
6 representatives.
7 (6) One (1) individual having experience in the treatment of
8 medical conditions by means of medical cannabis as a patient,
9 physician, or caregiver, appointed as a nonvoting member by
10 the president pro tempore of the senate.
11 (7) The commissioner of the department of state revenue or
12 the commissioner's designee, who serves as a nonvoting
13 member.
14 (8) The director of the department of agriculture or the
15 director's designee, who serves as a nonvoting member.
16 (9) The state health commissioner or the commissioner's
17 designee, who serves as a nonvoting member.
18 (b) The chairperson of the legislative council shall annually
19 select one (1) of the voting members to serve as chairperson.
20 Sec. 4. (a) A legislative member of the advisory committee may
21 be removed at any time by the appointing authority who appointed
22 the legislative member.
23 (b) If a vacancy exists on the advisory committee, the appointing
24 authority who appointed the former member whose position has
25 become vacant shall appoint an individual to fill the vacancy.
26 Sec. 5. Each member of the advisory committee is entitled to
27 receive the same per diem, mileage, and travel allowances paid to
28 individuals who serve as legislative and lay members, respectively,
29 of interim study committees established by the legislative council.
30 Sec. 6. The affirmative votes of a majority of the voting
31 members appointed to the advisory committee are required for the
32 advisory committee to take action on any measure, including final
33 reports.
34 Sec. 7. The advisory committee shall do the following:
35 (1) Review rules adopted by the commission.
36 (2) Review legislative proposals suggested by the commission.
37 (3) Evaluate the medical cannabis research and development
38 program under IC 7.1-9-5.
39 (4) Evaluate the operation of the medical cannabis program.
40 (5) Consider any other matter that has bearing on the
41 operation of the medical cannabis program.
42 SECTION 2. IC 6-7-3 IS REPEALED [EFFECTIVE JULY 1, 2022].
2022 IN 175—LS 6515/DI 106 3
1 (Controlled Substance Excise Tax).
2 SECTION 3. IC 6-8.1-1-1, AS AMENDED BY P.L.165-2021,
3 SECTION 120, IS AMENDED TO READ AS FOLLOWS
4 [EFFECTIVE JULY 1, 2022]: Sec. 1. "Listed taxes" or "taxes" includes
5 only the pari-mutuel taxes (IC 4-31-9-3 through IC 4-31-9-5); the
6 supplemental wagering tax (IC 4-33-12); the riverboat wagering tax (IC
7 4-33-13); the slot machine wagering tax (IC 4-35-8); the type II
8 gambling game excise tax (IC 4-36-9); the gross income tax (IC 6-2.1)
9 (repealed); the utility receipts and utility services use taxes (IC 6-2.3);
10 the state gross retail and use taxes (IC 6-2.5); the adjusted gross income
11 tax (IC 6-3); the supplemental net income tax (IC 6-3-8) (repealed); the
12 county adjusted gross income tax (IC 6-3.5-1.1) (repealed); the county
13 option income tax (IC 6-3.5-6) (repealed); the county economic
14 development income tax (IC 6-3.5-7) (repealed); the local income tax
15 (IC 6-3.6); the auto rental excise tax (IC 6-6-9); the financial
16 institutions tax (IC 6-5.5); the gasoline tax (IC 6-6-1.1); the special fuel
17 tax (IC 6-6-2.5); the motor carrier fuel tax (IC 6-6-4.1); a motor fuel tax
18 collected under a reciprocal agreement under IC 6-8.1-3; the vehicle
19 excise tax (IC 6-6-5); the aviation fuel excise tax (IC 6-6-13); the
20 commercial vehicle excise tax (IC 6-6-5.5); the excise tax imposed on
21 recreational vehicles and truck campers (IC 6-6-5.1); the hazardous
22 waste disposal tax (IC 6-6-6.6) (repealed); the heavy equipment rental
23 excise tax (IC 6-6-15); the vehicle sharing excise tax (IC 6-6-16); the
24 cigarette tax (IC 6-7-1); the medical cannabis cultivation tax (IC
25 6-11); the closed system cartridge tax (IC 6-7-2-7.5); the electronic
26 cigarette tax (IC 6-7-4); the beer excise tax (IC 7.1-4-2); the liquor
27 excise tax (IC 7.1-4-3); the wine excise tax (IC 7.1-4-4); the hard cider
28 excise tax (IC 7.1-4-4.5); the petroleum severance tax (IC 6-8-1); the
29 various innkeeper's taxes (IC 6-9); the various food and beverage taxes
30 (IC 6-9); the county admissions tax (IC 6-9-13 and IC 6-9-28); the oil
31 inspection fee (IC 16-44-2); the penalties assessed for oversize vehicles
32 (IC 9-20-3 and IC 9-20-18); the fees and penalties assessed for
33 overweight vehicles (IC 9-20-4 and IC 9-20-18); and any other tax or
34 fee that the department is required to collect or administer.
35 SECTION 4. IC 6-11 IS ADDED TO THE INDIANA CODE AS A
36 NEW ARTICLE TO READ AS FOLLOWS [EFFECTIVE JULY 1,
37 2022]:
38 ARTICLE 11. MEDICAL CANNABIS CULTIVATION TAX
39 Chapter 1. Imposition and Collection of Tax
40 Sec. 1. The following definitions apply throughout this article:
41 (1)"Department" refers to the department of state revenue.
42 (2)"Dispensary" has the meaning set forth in IC 7.1-8-1.
2022 IN 175—LS 6515/DI 106 4
1 (3)"Integrated facility" has the meaning set forth in
2 IC 7.1-8-1.
3 (4)"Patient" has the meaning set forth in IC 7.1-8-1.
4 (5)"Person" has the meaning set forth in IC 6-2.5-1-3.
5 (6) "Processor" has the meaning set forth in IC 7.1-8-1.
6 Sec. 2. A tax is imposed upon the privilege of processing
7 cannabis at a rate of seven percent (7%) of the sales price per
8 ounce of cannabis. This tax shall be paid to the department by a
9 processor and by an integrated facility that processes cannabis,
10 and is not the responsibility of a grower, dispensary, or a
11 qualifying patient.
12 Sec. 3. (a) Every person subject to the tax under this article shall
13 remit the tax owed to the department before the fifteenth day of
14 the month following the month in which the cannabis is sold.
15 (b) The department shall prescribe the return to be filed for the
16 payment of the tax.
17 Sec. 4. The amounts received from the tax imposed by this
18 article shall be transferred by the auditor of state to the state
19 general fund.
20 Sec. 5. The department has full power to administer and enforce
21 this chapter, to collect all taxes and penalties due, and to dispose of
22 taxes and penalties so collected as provided by law. The tax is a
23 listed tax for purposes of IC 6-8.1.
24 Sec. 6. Except as otherwise provided in this article, a tax
25 imposed under this chapter shall be imposed, paid, and collected in
26 the same manner that the state gross retail tax is imposed, paid,
27 and collected under IC 6-2.5.
28 Sec. 7. The department shall adopt rules under IC 4-22-2 to
29 implement this article
30 SECTION 5. IC 7.1-8 IS ADDED TO THE INDIANA CODE AS A
31 NEW ARTICLE TO READ AS FOLLOWS [EFFECTIVE JULY 1,
32 2022]:
33 ARTICLE 8. MEDICAL CANNABIS
34 Chapter 1. Definitions
35 Sec. 1. The following definitions apply throughout this article:
36 (1) "Cannabis" means any part of the plant genus Cannabis.
37 However, the term does not include industrial hemp.
38 (2) "Caregiver" means the individual designated by a patient
39 under this article to obtain, possess, deliver, and assist in the
40 administration of medical cannabis to the patient.
41 (3) "Commission" means the Indiana cannabis commission
42 established by IC 7.1-9-2-1.
2022 IN 175—LS 6515/DI 106 5
1 (4) "Dispensary" means a person that holds a permit issued
2 by the commission to dispense medical cannabis.
3 (5) "Executive commission" means the commissioners
4 described in IC 7.1-9-2.
5 (6) "Family or household member" means a person described
6 in IC 35-31.5-2-128.
7 (7) "Form of medical cannabis" means the characteristics of
8 the medical cannabis recommended for a particular patient,
9 including the method of consumption, and any particular
10 dosage, strain, variety, quantity, or percentage of medical
11 cannabis or of a particular active ingredient.
12 (8) "Grower" means a person that holds a permit issued by
13 the commission to grow cannabis to be processed into medical
14 cannabis. The term includes a site or facility operated by a
15 grower to carry out the functions authorized by the permit.
16 (9) "Identification card" means a valid document issued to a
17 patient or caregiver by the commission authorizing access to
18 medical cannabis.
19 (10) "INSPECT" means the Indiana scheduled prescription
20 electronic collection and tracking program established by
21 IC 25-1-13-4.
22 (11) "Integrated facility" means a person that holds a permit
23 issued by the commission to perform, as specified by the
24 permit, the functions of at least two (2) of the following:
25 (A) a grower;
26 (B) a processor;
27 (C) a secure transporter; and
28 (D) a dispensary.
29 The term includes a site or facility operated by an integrated
30 facility to carry out functions authorized by the permit. An
31 integrated facility may not perform the function of a testing
32 laboratory.
33 (12) "Medical cannabis" means a product containing a
34 derivative of cannabis for medical use by a patient in the form
35 of any of the following, as determined by rule of the
36 commission:
37 (A) An oral tablet, capsule, or tincture.
38 (B) A nonsugarcoated, nonsweetened gelatinous cube,
39 gelatinous rectangular cuboid, or lozenge in a cube or
40 rectangular cuboid shape.
41 (C) A gel, oil, cream, or other topical preparation.
42 (D) A suppository.
2022 IN 175—LS 6515/DI 106 6
1 (E) A transdermal patch.
2 (F) A nebulizer.
3 (G) A liquid or oil for administration using an inhaler.
4 The term does not include raw plant material, a product
5 administered by smoking or vaping, or a food product that
6 has cannabis baked, mixed, or otherwise infused into the
7 product, such as cookies or candies.
8 (13) "Medical cannabis organization" means a dispensary, a
9 grower, a processor, a secure transporter, a testing
10 laboratory, or an integrated facility that holds a permit issued
11 by the commission.
12 (14) "Package" means a container that a processor uses for
13 enclosing and containing medical cannabis. The term does not
14 include a carryout bag or other similar container.
15 (15) "Patient" means an individual who:
16 (A) is an adult who:
17 (i) has a qualifying medical condition; and
18 (ii) otherwise meets the requirements to use medical
19 cannabis under this article; or
20 (B) is a child less than eighteen (18) years of age who:
21 (i) has a qualifying medical condition;
22 (ii) is permitted to receive medical cannabis under this
23 article with the assistance of a caregiver; and
24 (iii) otherwise meets the requirements to use medical
25 cannabis of this article.
26 (16) "Permit" means an authorization issued by the
27 commission to conduct activities under this article.
28 (17) "Physician certification" means authorization from a
29 physician for a patient to use medical cannabis.
30 (18) "Processor" means a person that holds a permit issued by
31 the commission to purchase cannabis from a grower and
32 extract derivatives from the cannabis to produce medical
33 cannabis for sale and transfer in packaged and labeled form
34 to a dispensary. The term includes a site or facility operated
35 by a processor to carry out functions authorized by the
36 permit.
37 (19) "Qualifying medical condition" means one (1) or more of
38 the following conditions, or symptoms of the following
39 conditions, if treatment with cannabis is the standard of care
40 for the condition, or if there is documented evidence that
41 conventional treatment or therapy has failed:
42 (A) Autism spectrum disorder (ASD).
2022 IN 175—LS 6515/DI 106 7
1 (B) Cancer related cachexia, nausea, vomiting, weight loss,
2 or chronic pain.
3 (C) Crohn's disease.
4 (D) Depression.
5 (E) Epilepsy or a condition causing seizures.
6 (F) HIV/AIDS related nausea or weight loss.
7 (G) Panic disorder.
8 (H) Parkinson's disease.
9 (I) Persistent nausea that is not significantly responsive to
10 traditional treatment, except for nausea related to
11 pregnancy, cannabis induced cyclical vomiting syndrome,
12 or cannabinoid hyperemesis syndrome.
13 (J) Posttraumatic stress disorder (PTSD).
14 (K) Sickle cell anemia.
15 (L) Spasticity associated with a motor neuron disease,
16 including amyotrophic lateral sclerosis.
17 (M) Spasticity associated with multiple sclerosis or a spinal
18 cord injury.
19 (N) A terminal illness.
20 (O) Tourette's syndrome.
21 (P) A condition causing chronic or intractable pain in
22 which conventional therapeutic intervention and opiate
23 therapy is contraindicated or has proved ineffective.
24 (20) "Secure transporter" means a person that holds a permit
25 issued by the commission to transport cannabis or medical
26 cannabis from one permitted facility or site to another
27 permitted facility or site. The term includes equipment
28 operated by a secure transporter to carry out functions
29 authorized by the permit.
30 (21) "Testing laboratory" means a laboratory that analyzes
31 medical cannabis.
32 Chapter 2. Medical Cannabis Program
33 Sec. 1. (a) The medical cannabis program is established to serve
34 patients suffering from a qualifying medical condition by
35 permitting the use of medical cannabis under specified conditions.
36 (b) The commission shall administer the program.
37 (c) The commission has regulatory and enforcement authority
38 over the growing, processing, sale, dispensing, transporting, and
39 use of medical cannabis. The commission additionally has
40 regulatory and enforcement authority over the use of cannabis for
41 medical research.
42 Sec. 2. The commission shall do the following:
2022 IN 175—LS 6515/DI 106 8
1 (1) Issue a permit to a qualifying medical cannabis
2 organization authorizing it to grow, process, dispense,
3 transport, or test medical cannabis.
4 (2) Establish and maintain an electronic data base to store
5 and track information relating to the medical cannabis
6 program. The data base must:
7 (A) have the ability to authenticate in real time an
8 identification card presented to a dispensary;
9 (B) track in real time the amount of cannabis provided to
10 a patient or caregiver at a dispensary, and share this
11 information in real time with other dispensaries to prevent
12 diversion;
13 (C) store records relating to a physician's certification,
14 including, if applicable, the recommended form of
15 cannabis and any early expiration date recommended by
16 the physician; and
17 (D) track the cultivation, processing, transport, storage,
18 and dispensing of medical cannabis.
19 (3) Maintain within the commission's data base an electronic
20 directory of patients and caregivers approved to use or assist
21 in the administration of medical cannabis.
22 (4) Develop enforcement procedures, including announced
23 and unannounced inspections of:
24 (A) a dispensary;
25 (B) a grower facility;
26 (C) a processor facility;
27 (D) a testing laboratory;
28 (E) a secure transporter;
29 (F) an integrated facility; and
30 (G) all records of a medical cannabis organization.
31 (5) Establish a program to authorize the use of medical
32 cannabis for medical research purposes, and issue documents
33 to permit a researcher to obtain medical cannabis for
34 research purposes.
35 (6) Establish and maintain public outreach programs about
36 the medical cannabis program, including:
37 (A) a dedicated telephone number for patients, caregivers,
38 and members of the public to obtain basic information
39 about the dispensing of medical cannabis; and
40 (B) a publicly accessible Internet web site containing
41 information similar to that described in clause (A).
42 (7) Collaborate as necessary with other state agencies, and
2022 IN 175—LS 6515/DI 106 9
1 contract with third parties as necessary to carry out the
2 medical cannabis program.
3 (8) Develop record keeping requirements for all books and
4 papers, any electronic data base or tracking system data, and
5 other information of a medical cannabis organization.
6 Information shall be retained for at least four (4) years unless
7 otherwise provided by the commission.
8 (9) Restrict the advertising and marketing of medical
9 cannabis, which must be consistent with the federal
10 regulations governing prescription drug advertising and
11 marketing.
12 Except as otherwise provided in this article, data and records
13 described in this section are confidential and may not be
14 transferred or sold.
15 Sec. 3. (a) The commission shall adopt rules under IC 4-22-2 to
16 implement this article.
17 (b) The commission may adopt emergency rules in the manner
18 provided under IC 4-22-2-37.1 to implement this article.
19 Emergency rules adopted under this subsection expire on the later
20 of:
21 (1) the date permanent rules are adopted to replace the
22 emergency rules; or
23 (2) July 1, 2024.
24 Sec. 4. (a) The commission shall maintain a confidential list of
25 patients and caregivers to whom it has issued identification cards.
26 Except as provided in subsection (b), all information obtained by
27 the commission relating to patients, caregivers, and other
28 applicants is confidential and may not be transferred or sold.
29 (b) The following records are public:
30 (1) An application for a permit submitted by a medical
31 cannabis organization.
32 (2) Information relating to penalties or other disciplinary
33 actions taken against a medical cannabis organization for
34 violation of this article.
35 Chapter 3. Use of Medical Cannabis
36 Sec. 1. Notwithstanding any law to the contrary, the use,
37 possession, delivery, distribution, transport, cultivation, or
38 manufacture of:
39 (1) medical cannabis; or
40 (2) cannabis used in connection with medical cannabis;
41 is lawful if the use or possession complies with this article.
42 However, this article does not authorize a person to operate a
2022 IN 175—LS 6515/DI 106 10
1 motor vehicle, a motorboat, or any other device or equipment
2 while under the influence of medical cannabis.
3 Sec. 2. The use of medical cannabis is subject to the following:
4 (1) Medical cannabis may be dispensed only to:
5 (A) an adult patient who receives a certification from a
6 physician and is in possession of a valid identification card
7 issued by the commission that authorizes dispensing
8 medical cannabis to the patient;
9 (B) a caregiver who possesses a valid identification card
10 issued by the commission and who is acting on behalf of a
11 patient; or
12 (C) a research facility authorized by the commission,
13 under terms and conditions established by the commission.
14 (2) Medical cannabis may not be dispensed to a patient less
15 than eighteen (18) years of age, but may be dispensed to the
16 patient's caregiver on behalf of the patient less than eighteen
17 (18) years of age.
18 (3) If a physician has ordered that medical cannabis be
19 dispensed in a specific form, medical cannabis may be
20 dispensed only in that form.
21 (4) An individual may not act as a caregiver for more than ten
22 (10) patients.
23 (5) A patient may designate up to two (2) caregivers at any
24 one (1) time.
25 (6) Medical cannabis that has not been used by the patient
26 shall be kept in the original package in which it was
27 dispensed.
28 (7) A patient or caregiver shall possess an identification card
29 whenever the patient or caregiver is in possession of medical
30 cannabis.
31 (8) A product packaged by a medical cannabis organization
32 may be identified only by:
33 (A) the name of the grower or processor;
34 (B) the name of the dispensary;
35 (C) the form and species of medical cannabis;
36 (D) the percentage of tetrahydrocannabinol and
37 cannabinol contained in the product; and
38 (E) any other labeling required by the commission.
39 Sec. 3. (a) Except as expressly permitted in this article, the
40 possession or use of medical cannabis is unlawful.
41 (b) In addition to any other penalty provided by law, the
42 unlawful possession or use of medical cannabis may be a crime
2022 IN 175—LS 6515/DI 106 11
1 under IC 35-48-4.
2 Chapter 4. Physicians
3 Sec. 1. (a) A physician who issues a physician certification under
4 this article may not have an ownership interest in a medical
5 cannabis organization.
6 (b) A physician may issue a certification to a patient only if the
7 physician:
8 (1) establishes and intends to maintain a bona fide physician
9 patient relationship with the patient for the provision of
10 medical services that is established by an in-person visit and
11 for which there is an expectation that the physician will
12 provide care to the patient on an ongoing basis; or
13 (2) establishes coordination with the patient's existing
14 primary physician for treatment of the patient's serious
15 medical condition.
16 (c) A physician who violates this section may be subject to
17 professional discipline.
18 Sec. 2. A physician may issue a certification to use medical
19 cannabis to a patient if the following requirements are met:
20 (1) The physician has determined that the patient has a
21 qualifying medical condition.
22 (2) The patient is under the physician's continuing care for the
23 serious medical condition, except as provided in section
24 1(b)(2) of this chapter.
25 (3) The physician has determined the patient is likely to
26 receive therapeutic or palliative benefit from the use of
27 medical cannabis.
28 Sec. 3. A physician issuing a certification under section 1(b)(2)
29 of this chapter may not issue a certification unless the physician
30 has contacted the patient's existing primary physician to discuss
31 the patient's qualifying medical condition and which form of
32 medical cannabis the patient is likely to benefit from.
33 Sec. 4. A certification must include the following information:
34 (1) The patient's name, date of birth, and address.
35 (2) The specific qualifying medical condition of the patient.
36 (3) A statement by the physician that the patient has a
37 qualifying medical condition and the patient is under
38 continuing care for the qualifying medical condition that is
39 provided by:
40 (A) the physician; or
41 (B) the patient's existing primary physician (as described
42 under section 1(b)(2) of this chapter).
2022 IN 175—LS 6515/DI 106 12
1 (4) The date of issuance.
2 (5) The name, address, telephone number, and signature of
3 the physician.
4 (6) Any requirement or limitation concerning the appropriate
5 form of medical cannabis, and any limitation on the duration
6 of use, if applicable.
7 Sec. 5. (a) A physician shall review INSPECT:
8 (1) to determine, before issuing a certification, the controlled
9 substance history of a patient; and
10 (2) before recommending a change of amount or form of
11 medical cannabis.
12 (b) A physician may access INSPECT to do any of the following:
13 (1) To determine whether a patient is under treatment with a
14 controlled substance by another physician or other person.
15 (2) To allow the physician to review the patient's controlled
16 substance history as considered necessary by the physician.
17 (3) To provide to the patient, or a caregiver on behalf of the
18 patient if authorized by the patient, a copy of the patient's
19 controlled substance history.
20 Sec. 6. A physician shall do the following:
21 (1) Provide the certification to the patient.
22 (2) Provide a copy of the certification to the commission,
23 which shall place the information in the patient directory
24 within the commission's electronic data base. The certification
25 may be transmitted to the commission electronically.
26 (3) File a copy of the certification in the patient's health care
27 record.
28 Sec. 7. A physician may not issue a certification for the
29 physician's own use or for the use of a family or household member
30 of the physician.
31 Chapter 5. Certification Form
32 Sec. 1. The commission shall develop a standard certification
33 form, which it shall provide to a physician upon request. The form
34 must be available electronically. The form must include a
35 statement that a false statement made by a physician is punishable
36 under the penalties of perjury.
37 Chapter 6. Patients
38 Sec. 1. The commission shall issue an identification card to a
39 patient who has a valid certification and who otherwise meets the
40 requirements of this article.
41 Sec. 2. The commission shall issue an identification card to a
42 caregiver designated by the patient in accordance with this article.
2022 IN 175—LS 6515/DI 106 13
1 Sec. 3. Except as provided in section 4 of this chapter, an
2 identification card issued to a patient authorizes the patient to
3 obtain and use medical cannabis as authorized by this article.
4 Except as provided in section 5 of this chapter, an identification
5 card issued to a caregiver authorizes the caregiver to obtain
6 medical cannabis for a patient.
7 Sec. 4. A patient who is less than eighteen (18) years of age may
8 not obtain medical cannabis from a dispensary. A caregiver may
9 obtain medical cannabis at a dispensary for use by a patient.
10 Sec. 5. A caregiver may not obtain medical cannabis from a
11 dispensary in a form that the patient who will use the medical
12 cannabis is not permitted to use.
13 Chapter 7. Identification Cards
14 Sec. 1. The commission shall do the following:
15 (1) Review applications for identification cards.
16 (2) Review certifications submitted by physicians.
17 (3) Issue identification cards to patients and caregivers.
18 (4) Note in the electronic data base if a patient identification
19 card may not be used to obtain medical cannabis from a
20 dispensary because the patient is less than eighteen (18) years
21 of age.
22 (5) Note in the electronic data base any restriction on the form
23 of cannabis that may be dispensed.
24 Sec. 2. A patient or a caregiver may apply, in a form and
25 manner prescribed by the commission, for issuance or renewal of
26 an identification card. A caregiver must submit a separate
27 application for issuance or renewal. Each application must include:
28 (1) the name, address, and date of birth of the patient;
29 (2) the name, address, and date of birth of a caregiver, if
30 applicable;
31 (3) a copy of the certification issued by the physician;
32 (4) the name, address, and telephone number of the physician;
33 (5) the signature of the applicant and the date signed; and
34 (6) any other information required by the commission.
35 Sec. 3. The fee to apply for or to renew an identification card is
36 fifty dollars ($50). The commission may waive or reduce the fee if
37 the applicant demonstrates financial hardship.
38 Sec. 4. The commission shall make application and renewal
39 forms available on the commission's Internet web site.
40 Sec. 5. (a) The identification card of a patient or caregiver
41 expires one (1) year after the date of issuance, unless a physician
42 has specified that a patient should use medical cannabis for less
2022 IN 175—LS 6515/DI 106 14
1 than one (1) year.
2 (b) If a physician has specified that a patient's use of medical
3 cannabis should be limited to certain forms of medical cannabis,
4 the permitted types of medical cannabis must be listed on the
5 identification card.
6 Sec. 6. (a) The commission shall issue separate identification
7 cards for a patient and a caregiver as soon as reasonably
8 practicable after receiving a properly completed application.
9 (b) If the commission determines that an application is
10 incomplete or factually inaccurate, the commission shall promptly
11 notify the applicant.
12 (c) If a patient application designates an individual as a
13 caregiver who is not authorized to be a caregiver, the commission
14 shall deny that portion of the application, but may approve the
15 balance of the application.
16 Sec. 7. (a) A patient or caregiver who has been issued an
17 identification card shall notify the commission not later than ten
18 (10) days after any change of name or address.
19 (b) A patient shall notify the commission within ten (10) days if
20 a physician has determined the patient no longer has the qualifying
21 medical condition noted on the certification.
22 Sec. 8. (a) If the identification card of a patient or caregiver is
23 lost, stolen, destroyed, or made illegible, the patient or caregiver
24 shall apply to the commission for a replacement card not later than
25 ten (10) days after discovery of the loss or defacement. The
26 application for a replacement card shall be on a form furnished by
27 the commission and accompanied by a twenty-five dollar ($25) fee.
28 The commission may establish higher fees for issuance of second
29 and subsequent replacement identification cards.
30 (b) The commission may waive or reduce the fee in cases of
31 demonstrated financial hardship.
32 (c) The commission shall issue a replacement identification card
33 as soon as practicable.
34 (d) A patient or caregiver may not obtain medical cannabis
35 from a dispensary until the commission issues the replacement
36 card.
37 Sec. 9. The identification card must contain the following
38 information:
39 (1) The name of the patient or caregiver, as applicable. The
40 identification card must also state whether the individual is
41 designated as a patient or as a caregiver.
42 (2) The date of issuance and expiration date.
2022 IN 175—LS 6515/DI 106 15
1 (3) A unique identification number for the patient or
2 caregiver, as applicable.
3 (4) A photograph of the individual to whom the identification
4 card is issued.
5 (5) Any requirement or limitation set by the physician as to
6 the form of medical cannabis.
7 (6) Any other requirements as determined by the commission.
8 However, the commission may not require that an
9 identification card disclose the patient's qualifying medical
10 condition.
11 The commission shall establish guidelines specifying an acceptable
12 photograph under subdivision (4) and shall provide a reasonable
13 accommodation for a patient who is confined to the patient's home
14 or is in inpatient care.
15 Sec. 10. The commission shall monthly transmit fees received
16 under this chapter to the auditor of state for deposit in the state
17 general fund.
18 Chapter 8. Caregivers
19 Sec. 1. (a) A caregiver must be at least eighteen (18) years of
20 age.
21 (b) However, a caregiver may be less than twenty-one (21) years
22 of age only if the commission determines that it is in the best
23 interests of the patient that a specific person less than twenty-one
24 (21) years of age serve as a caregiver.
25 Sec. 2. (a) A patient may terminate a person's designation as
26 caregiver at any time.
27 (b) The patient shall notify the commission that the patient has
28 terminated the person's caregiver designation as soon as
29 reasonably practicable after the termination.
30 (c) Upon learning that a patient has terminated a person's
31 caregiver designation, the commission shall cancel the caregiver's
32 identification card and notify the caregiver to return the physical
33 copy of the card.
34 Sec. 3. If a patient designates a caregiver, the caregiver may
35 submit an application for an identification card as a caregiver. The
36 caregiver application must include:
37 (1) the name, address, and date of birth of the caregiver;
38 (2) if the caregiver has an identification card for the caregiver
39 (as a patient) or another patient (as caregiver), the expiration
40 date of each identification card; and
41 (3) any other information required by the commission.
42 The application must be signed and dated by the caregiver
2022 IN 175—LS 6515/DI 106 16
1 applicant and verified under penalties of perjury.
2 Sec. 4. (a) Except as provided in subsection (c), before the
3 caregiver application is approved, the caregiver must authorize the
4 commission to perform a national criminal history background
5 check of the caregiver.
6 (b) The caregiver is responsible for the fee for the national
7 criminal history background check.
8 (c) The commission may conduct only one (1) national criminal
9 history background check of the caregiver per year.
10 Sec. 5. The caregiver shall pay an application fee of fifty dollars
11 ($50). The commission may waive or reduce the fee in cases of
12 demonstrated financial hardship.
13 Sec. 6. (a) After receiving the caregiver application, the fee, and
14 the results of the national criminal history background check, the
15 commission shall:
16 (1) verify the information contained in the application; and
17 (2) review INSPECT with respect to the applicant.
18 (b) The commission may deny a caregiver application if it finds
19 that the caregiver has:
20 (1) been convicted of a criminal offense within the previous
21 five (5) years relating to the sale or possession of a controlled
22 substance; or
23 (2) a history of drug abuse.
24 Sec. 7. The commission shall monthly transmit fees received
25 under this chapter to the auditor of state for deposit in the state
26 general fund.
27 Chapter 9. Minor Patients
28 Sec. 1. If a patient is less than eighteen (18) years of age, the
29 following apply:
30 (1) The patient must have a caregiver.
31 (2) The caregiver must be:
32 (A) the patient's parent or legal guardian;
33 (B) an individual designated by a parent or legal guardian;
34 or
35 (C) an appropriate individual approved by the commission
36 on a sufficient showing that no parent or legal guardian is
37 appropriate or available.
38 Chapter 10. Suspension
39 Sec. 1. If a patient or caregiver knowingly, intentionally, or
40 recklessly:
41 (1) violates any provision of this article; or
42 (2) transfers or sells medical cannabis to a person not
2022 IN 175—LS 6515/DI 106 17
1 qualified as a patient under this article;
2 the commission may suspend or revoke the patient's or caregiver's
3 identification card. The suspension or revocation is in addition to
4 any criminal or other penalty.
5 Chapter 11. General Prohibitions
6 Sec. 1. A person may not operate a motor vehicle, including a
7 motorboat, while under the influence of medical cannabis.
8 Sec. 2. A patient may not perform any employment duties in
9 exposed high places or in confined spaces while under the influence
10 of medical cannabis.
11 Sec. 3. A patient's employer may prohibit a patient from
12 performing any task while under the influence of medical cannabis.
13 The prohibition is not an adverse employment decision or unlawful
14 discrimination, even if the prohibition results in financial harm to
15 the patient.
16 Chapter 12. Medical Cannabis Organizations
17 Sec. 1. The following entities may receive a permit to operate as
18 a medical cannabis organization to grow, process, transport,
19 dispense, test, or transport medical cannabis (or, in the case of an
20 integrated facility, to perform one (1) or more functions described
21 in subdivisions (1), (2), (3), or (5)):
22 (1) A grower.
23 (2) A processor.
24 (3) A dispensary.
25 (4) A testing laboratory.
26 (5) A secure transporter.
27 (6) An integrated facility.
28 Sec. 2. A medical cannabis organization may not receive a
29 permit if a person having an ownership interest in the medical
30 cannabis organization has a felony conviction that has not been
31 expunged.
32 Sec. 3. (a) An entity described in section 1 of this chapter may
33 not hold an ownership interest in another entity described in
34 section 1 of this chapter.
35 (b) A person holding an ownership interest, directly or through
36 one (1) or more other entities, in an entity described in section 1 of
37 this chapter may not hold an ownership interest, directly or
38 through one (1) or more other entities, in another entity described
39 in section 1 of this chapter.
40 Sec. 4. (a) The commission shall develop an application for:
41 (1) a grower permit allowing the grower to grow medical
42 cannabis;
2022 IN 175—LS 6515/DI 106 18
1 (2) a dispensary permit allowing a dispensary to dispense
2 medical cannabis;
3 (3) a processor permit allowing a processor to process medical
4 cannabis;
5 (4) a testing laboratory permit allowing a testing laboratory
6 to test medical cannabis;
7 (5) a secure transporter permit allowing a person to transport
8 medical cannabis; and
9 (6) an integrated facility permit, allowing a person to perform
10 more than one (1) function described in this section.
11 (b) The following information must be included on the permit
12 application:
13 (1) The name, address, telephone number, and other contact
14 information for every person having an ownership interest in
15 the medical cannabis organization.
16 (2) Information relating to a similar permit, license, or other
17 authorization granted in another jurisdiction, including any
18 suspensions, revocations, or discipline in that jurisdiction.
19 (3) A release authorizing the commission to conduct a
20 background check of the persons having an ownership
21 interest in the medical cannabis organization.
22 (4) A statement as to whether the applicant intends to operate
23 as a grower, processor, or dispensary, and a concise
24 description of the business activities in which the medical
25 cannabis organization intends to engage.
26 (5) The address or other location where the medical cannabis
27 organization intends to operate.
28 (6) A statement that no person having an ownership interest
29 in the medical cannabis organization has a felony conviction
30 that has not been expunged.
31 (7) Any other information required by the commission.
32 (c) A permit application described in this section shall be
33 verified and completed subject to the penalties of perjury.
34 (d) An applicant shall submit the appropriate application and
35 permit fees at the time the applicant submits the application.
36 Chapter 13. Medical Cannabis Organization Permits
37 Sec. 1. Subject to the limits and conditions described in section
38 10 of this chapter, the commission may grant a medical cannabis
39 organization permit if the commission makes the following
40 findings:
41 (1) The applicant will maintain effective control of medical
42 cannabis in the custody of the applicant.
2022 IN 175—LS 6515/DI 106 19
1 (2) The applicant will comply with all state statutes, all rules
2 adopted by the commission, and any ordinances adopted by
3 a unit.
4 (3) The applicant has the ability to properly carry out the
5 activity for which the permit is sought.
6 (4) The applicant has sufficient financial means to acquire all
7 property, equipment, and permits required to properly grow,
8 process, or dispense medical cannabis.
9 (5) The applicant is able to implement and maintain
10 appropriate security, tracking, record keeping, and
11 surveillance systems relating to the acquisition, possession,
12 growth, manufacture, sale, delivery, transportation,
13 distribution, or dispensing of medical cannabis.
14 (6) The applicant satisfies any other conditions required
15 under rules adopted by the commission.
16 Sec. 2. If the commission finds that information included in the
17 application is insufficient for the commission to grant a permit to
18 the medical cannabis organization, the commission may request
19 that the applicant submit additional documentation relating to one
20 (1) or more items listed in section 1 of this chapter.
21 Sec. 3. (a) Except as provided under subsection (b), a permit
22 granted under this chapter is nontransferable.
23 (b) A permit holder may transfer a permit to a person
24 authorized to hold a permit in accordance with rules adopted by
25 the commission if:
26 (1) the permit holder has held the permit for at least
27 twenty-four (24) months; or
28 (2) the transfer is necessary due to the death or disability of
29 the permit holder or a similar severe hardship. For purposes
30 of this subdivision, financial hardship is not a severe hardship.
31 Sec. 4. A permit granted under this application is valid for one
32 (1) year after the date of issuance.
33 Sec. 5. (a) A permit may be renewed for one (1) or more
34 additional one (1) year periods.
35 (b) The commission shall establish deadlines for filing a renewal
36 application that provide the commission with sufficient time to
37 review the application without causing an interruption in the
38 medical cannabis organization's activities.
39 (c) The same standards that apply for granting an initial
40 application apply to an application for renewal. In determining
41 whether the renewal of a permit serves the public interest, the
42 commission shall consider the manner in which the renewal
2022 IN 175—LS 6515/DI 106 20
1 applicant has operated the medical cannabis organization and
2 complied with all relevant laws.
3 Sec. 6. A permit issued by the commission to a medical cannabis
4 organization must include the following information:
5 (1) The name and address of the medical cannabis
6 organization.
7 (2) The type of permit.
8 (3) The activities that are permitted under the permit.
9 (4) A description of the property and facilities authorized to
10 be used by the medical cannabis organization.
11 (5) Any other information required by the commission.
12 Sec. 7. The commission may suspend or revoke all or part of a
13 permit granted under this chapter if, following a hearing, the
14 commission finds the following:
15 (1) That one (1) or more of the determinations made under
16 section 1 of this chapter are no longer valid.
17 (2) That the medical cannabis organization knowingly or
18 intentionally sold or distributed medical cannabis to a person
19 not qualified as a patient or a caregiver under this article.
20 (3) That the medical cannabis organization has failed to
21 maintain effective control against diversion of medical
22 cannabis.
23 (4) That the medical cannabis organization has violated a
24 provision of this article or a rule adopted by the commission.
25 (5) That the medical cannabis organization has failed to
26 comply with another law regulating controlled substances.
27 Sec. 8. (a) An applicant for a medical cannabis organization
28 permit has a continuing duty to notify the commission of any
29 material change in facts or circumstances relating to the
30 applicant's application, including a change in ownership.
31 (b) An applicant's duty to notify the commission begins on the
32 date the applicant submits the application and continues for as long
33 as the applicant holds a permit.
34 Sec. 9. The commission may, upon request of a permit holder,
35 amend an existing permit to authorize a permit holder to:
36 (1) move the permit holder's operations from one (1) location
37 to another; or
38 (2) perform additional activities, or cease the performance of
39 certain activities now performed, at the permit holder's
40 facility;
41 if the commission finds that the amendment is reasonable under
42 the circumstances.
2022 IN 175—LS 6515/DI 106 21
1 Sec. 10. (a) The commission may issue not more than:
2 (1) thirteen (13) processor permits;
3 (2) forty (40) grower permits; and
4 (3) five (5) integrated facility permits.
5 (b) The commission shall ensure that, to the extent practicable:
6 (1) at least one (1) processor permit is issued for a facility
7 located in each geographical region described in
8 IC 10-11-2-5(d);
9 (2) at least three (3) grower permits are issued for cultivation
10 in each geographical region described in IC 10-11-2-5(d);
11 (3) no more than two (2) integrated facility permits are issued
12 for facilities located in the same geographical region
13 described in IC 10-11-2-5(d); and
14 (4) the persons receiving a permit reflect the diversity and
15 makeup of Indiana.
16 Sec. 11. (a) The commission may not issue a grower, processor,
17 or dispensary permit for a new facility located in a municipality
18 unless the governing body of the municipality has adopted an
19 ordinance or resolution authorizing operation of the facility.
20 (b) The commission may not issue a grower, processor, or
21 dispensary permit for a new facility located in an unincorporated
22 part of a county unless the governing body of the county has
23 adopted an ordinance or resolution authorizing operation of the
24 facility.
25 Chapter 14. General Duties of a Permit Holder
26 Sec. 1. The holder of a medical cannabis organization permit
27 must do the following:
28 (1) Report the loss, theft, or unexplained disappearance of
29 medical cannabis to a law enforcement agency not later than
30 twenty-four (24) hours after the loss, theft, or disappearance
31 is discovered.
32 (2) Permit announced or unannounced inspections by the
33 commission of all medical cannabis organization facilities and
34 records.
35 Chapter 15. Application and Permit Fees
36 Sec. 1. The following fees apply to a grower:
37 (1) A nonrefundable grower permit application fee of ten
38 thousand dollars ($10,000).
39 (2) A refundable grower permit fee of fifty thousand dollars
40 ($50,000).
41 (3) A refundable grower permit renewal fee of ten thousand
42 dollars ($10,000).
2022 IN 175—LS 6515/DI 106 22
1 (4) A nonrefundable permit amendment fee of two hundred
2 fifty dollars ($250).
3 Sec. 2. The following fees apply to a processor:
4 (1) A nonrefundable processor permit application fee of ten
5 thousand dollars ($10,000).
6 (2) A refundable processor permit fee of fifty thousand dollars
7 ($50,000).
8 (3) A refundable processor permit renewal fee of ten thousand
9 dollars ($10,000).
10 (4) A nonrefundable permit amendment fee of two hundred
11 fifty dollars ($250).
12 Sec. 3. The following fees apply to a dispensary:
13 (1) A nonrefundable dispensary permit application fee of five
14 thousand dollars ($5,000).
15 (2) A refundable dispensary permit fee of twenty thousand
16 dollars ($20,000) for each dispensary location.
17 (3) A refundable dispensary permit renewal fee of five
18 thousand dollars ($5,000) for each dispensary location.
19 (4) A nonrefundable permit amendment fee of two hundred
20 fifty dollars ($250).
21 Sec. 4. The following fees apply to a testing laboratory:
22 (1) A nonrefundable testing laboratory permit application fee
23 of two thousand dollars ($2,000).
24 (2) A refundable testing laboratory permit fee of ten thousand
25 dollars ($10,000) for each testing laboratory location.
26 (3) A refundable testing laboratory permit renewal fee of two
27 thousand dollars ($2,000) for each testing laboratory location.
28 (4) A nonrefundable permit amendment fee of two hundred
29 fifty dollars ($250).
30 Sec. 5. The following fees apply to a secure transporter:
31 (1) A nonrefundable secure transporter permit application fee
32 of two thousand dollars ($2,000).
33 (2) A refundable secure transporter permit fee of ten
34 thousand dollars ($10,000) for each secure transporter
35 location.
36 (3) A refundable secure transporter permit renewal fee of two
37 thousand dollars ($2,000) for each secure transporter
38 location.
39 (4) A nonrefundable permit amendment fee of two hundred
40 fifty dollars ($250).
41 Sec. 6. An applicant must submit the application fee and permit
42 fee at the time the applicant submits the application.
2022 IN 175—LS 6515/DI 106 23
1 Sec. 7. (a) The commission shall retain the application fee even
2 if the application is not approved.
3 (b) The commission shall refund the permit fee and renewal fee
4 if the permit or renewal is not approved. However, the permit fee
5 and renewal fee are not refundable if the permit is initially granted
6 but later suspended or revoked.
7 (c) The commission shall retain the amendment fee even if the
8 application for amendment is not approved.
9 Sec. 8. The commission shall transfer all fees to the auditor of
10 state for deposit in the state general fund.
11 Chapter 16. Tracking and Record Keeping
12 Sec. 1. (a) A medical cannabis organization must implement an
13 electronic inventory tracking system, which must be directly
14 accessible to the commission through an electronic data base that
15 is updated at least one (1) time each day.
16 (b) The electronic inventory tracking system must include the
17 following:
18 (1) For a grower, a seed to sale tracking system that tracks the
19 medical cannabis from seed to plant until the medical
20 cannabis is sold or transferred to its final destination.
21 (2) For a processor, a system that tracks medical cannabis
22 from its purchase from a grower to its transfer to a
23 dispensary, testing laboratory, secure transporter, or research
24 facility as authorized by this article.
25 (3) For a dispensary, a system that tracks medical cannabis
26 from its purchase from a grower or processor, its receipt from
27 a secure transporter, to its sale to a patient or caregiver or
28 transfer to a testing laboratory, research facility, grower,
29 secure transporter, or processor as authorized by this article.
30 (4) For a dispensary, a system to verify that an identification
31 card presented by a patient or caregiver:
32 (A) is valid; and
33 (B) authorizes the patient or caregiver to receive medical
34 cannabis from a dispensary.
35 (5) For a secure transporter, a system that tracks medical
36 cannabis from its loading to its delivery.
37 (6) For a medical cannabis organization, a:
38 (A) daily log of each day's beginning inventory,
39 acquisitions, amounts purchased and sold, disbursements,
40 disposals, and ending inventory, including prices paid and
41 amounts collected from patients and caregivers;
42 (B) system to recall defective medical cannabis; and
2022 IN 175—LS 6515/DI 106 24
1 (C) system to track the waste resulting from the growth of
2 medical cannabis, including the name and address of a
3 disposal service.
4 Sec. 2. A medical cannabis organization must implement a plan
5 for:
6 (1) security and surveillance; and
7 (2) record keeping and record retention.
8 Sec. 3. The commission:
9 (1) shall require a medical cannabis organization to make an
10 annual report to the commission; and
11 (2) may require a medical cannabis organization to make a
12 quarterly report to the commission.
13 The commission shall determine the form and contents of the
14 report and may make all or part of the report available to the
15 public.
16 Chapter 17. Grower Operations
17 Sec. 1. A person holding a grower permit may do all the
18 following in accordance with rules adopted by the commission:
19 (1) Obtain seed and plant material from another grower.
20 (2) Sell and transport seed and plant material to another
21 grower or processor.
22 (3) Sell cannabis to a processor or research facility authorized
23 by the commission, and transfer cannabis to a testing facility
24 authorized by the commission.
25 (4) Transfer cannabis to a secure transporter to transport the
26 medical cannabis for a purpose authorized under this section.
27 The commission may authorize a person holding a grower permit
28 to sell seed, plant material, and medical cannabis to a grower,
29 processor, dispensary, testing laboratory, or research facility in
30 another state.
31 Sec. 2. The commission shall determine the manner in which
32 medical cannabis may be grown, harvested, and stored at the
33 cultivation site.
34 Sec. 3. The commission shall determine the manner in which the
35 grower shall package or secure cannabis and medical cannabis
36 before transfer to a secure transporter for transport as follows:
37 (1) Requirements relating to shipping containers and
38 packaging.
39 (2) The manner in which trucks, vans, trailers, or other
40 carriers will be secured.
41 (3) Obtaining copies of driver's licenses and registrations and
42 other information related to security and tracking.
2022 IN 175—LS 6515/DI 106 25
1 (4) The use of a GPS tracking system.
2 (5) Record keeping requirements for delivery and receipt of
3 medical cannabis products.
4 Sec. 4. A grower shall contract with a testing laboratory
5 permittee to test the medical cannabis produced by the grower. If
6 a grower learns that the grower's sample has failed required
7 testing, the grower must take steps to remediate the harvest to
8 allowable levels under IC 7.1-8-20-3, or immediately dispose of the
9 harvest.
10 Chapter 18. Processor Operations
11 Sec. 1. A person holding a processor permit may do all the
12 following in accordance with rules adopted by the commission:
13 (1) Obtain cannabis plant material from a grower.
14 (2) Sell and transport cannabis to another grower or
15 processor.
16 (3) Sell and transport medical cannabis to a processor,
17 dispensary, testing laboratory, or research facility authorized
18 by the commission.
19 The commission may authorize a person holding a processor
20 permit to sell processed medical cannabis or unprocessed cannabis
21 to a grower, processor, dispensary, testing laboratory, or research
22 facility in another state.
23 Sec. 2. The commission shall determine the manner in which
24 cannabis and medical cannabis may be processed or stored at the
25 processor facility.
26 Sec. 3. The commission shall determine the manner in which the
27 processor shall package or secure cannabis and medical cannabis
28 before transfer to a secure transporter for transport. Rules
29 adopted by the commission must include the following:
30 (1) Requirements relating to shipping containers and
31 packaging.
32 (2) The manner in which trucks, vans, trailers, or other
33 carriers will be secured.
34 (3) Obtaining copies of driver's licenses and registrations and
35 other information related to security and tracking.
36 (4) The use of a GPS tracking system.
37 (5) Record keeping requirements for delivery and receipt of
38 medical cannabis products.
39 Sec. 4. A processor shall develop a plan to ensure that medical
40 cannabis products are properly labeled, are not packaged in a
41 manner that is appealing to children, and are placed in child
42 resistant packaging.
2022 IN 175—LS 6515/DI 106 26
1 Sec. 5. A processor shall include on its labeling of medical
2 cannabis products the following:
3 (1) The number of doses contained within the package, the
4 species, and the percentage of tetrahydrocannabinol and
5 cannabinol.
6 (2) A warning that the medical cannabis must be kept in the
7 original container in which it was dispensed.
8 (3) A warning that unauthorized use is unlawful and will
9 subject the person to criminal penalties.
10 (4) A list of ingredients.
11 (5) Any other information required by the commission.
12 Sec. 6. A processor shall contract with a testing laboratory
13 permittee to test the medical cannabis product produced by the
14 processor. If a processor learns that a sample submitted by the
15 processor has failed required testing, the processor must take steps
16 to remediate the product to allowable levels under IC 7.1-8-20-3,
17 or immediately dispose of the batch.
18 Chapter 19. Dispensary Operations
19 Sec. 1. A dispensary holding a valid permit under this article
20 may dispense medical cannabis to a patient or caregiver upon
21 presentation of a valid identification card for that patient or
22 caregiver and electronic verification that the identification card is
23 valid and authorizes the patient or caregiver to receive medical
24 cannabis from a dispensary.
25 Sec. 2. The dispensary shall provide to the patient or caregiver
26 a receipt including all of the following:
27 (1) The name and address of the dispensary.
28 (2) The name and address of the patient and caregiver (if
29 applicable).
30 (3) The date the medical cannabis was dispensed.
31 (4) Any requirement or limitation by the physician as to the
32 form of medical cannabis for the patient.
33 (5) The form and the quantity of medical cannabis dispensed.
34 Sec. 3. (a) For purposes of this section:
35 (1) eight (8) grams of concentrated medical cannabis; or
36 (2) eighty (80) ten (10) milligram doses of
37 tetrahydrocannabinol;
38 are equivalent to one (1) ounce of medical cannabis.
39 (b) A dispensary may not dispense:
40 (1) more than one (1) ounce of medical cannabis to a patient
41 (or caregiver on behalf of a specific patient) per day; or
42 (2) a form of medical cannabis that the patient is not
2022 IN 175—LS 6515/DI 106 27
1 permitted to use.
2 Sec. 4. The medical cannabis packaging must include the
3 following information:
4 (1) The number of doses contained within the package, the
5 species, and the percentage of tetrahydrocannabinol and
6 cannabinol.
7 (2) A warning that the medical cannabis must be kept in the
8 original container in which it was dispensed.
9 (3) A warning that unauthorized use is unlawful and will
10 subject the person to criminal penalties.
11 (4) Any other information required by the commission.
12 Sec. 5. A dispensary:
13 (1) may dispense medical cannabis only in an indoor,
14 enclosed, secure facility located in Indiana; and
15 (2) may sell services approved by the commission related to
16 the use of medical cannabis.
17 Sec. 6. A dispensary shall post a copy of its permit in a location
18 within its facility in a manner that is easily observable by the
19 public.
20 Sec. 7. A dispensary shall establish a plan to:
21 (1) prevent diversion of medical cannabis; and
22 (2) ensure a patient is not dispensed more than one (1) ounce
23 of medical cannabis per day.
24 Chapter 20. Testing Laboratory Operations
25 Sec. 1. A testing laboratory may test cannabis and medical
26 cannabis from a medical cannabis organization in accordance with
27 rules adopted by the commission if:
28 (1) it holds a valid permit issued under this article; or
29 (2) it is already accredited as a testing laboratory to
30 International Organization for Standardization (ISO) 17025
31 by a third party accrediting body such as the American
32 Association for Laboratory Accreditation (A2LA) or Assured
33 Calibration and Laboratory Accreditation Select Services
34 (ACLASS).
35 Sec. 2. A testing laboratory shall maintain policies and
36 procedures for the secure and proper analytical testing of cannabis
37 and medical cannabis, which must include:
38 (1) laboratory analysis techniques, including specific
39 instrumentation and protocols necessary to perform the tests
40 required by the commission;
41 (2) the implementation of standards and methods for
42 conducting analysis of forms of medical cannabis in
2022 IN 175—LS 6515/DI 106 28
1 accordance with the requirements of ISO/IEC 17025
2 "General Requirements for the Competence of Testing and
3 Calibration Laboratories"; and
4 (3) methods of testing to detect:
5 (A) potency levels of tetrahydrocannabinol and
6 cannabinol;
7 (B) microbials;
8 (C) mycotoxins;
9 (D) pesticides;
10 (E) residual solvents; and
11 (F) any other matter as required by the commission.
12 Sec. 3. The commission shall establish the allowable level of
13 microbials, mycotoxins, pesticides, residual solvents, and other
14 matter determined by the commission. If a sample received from
15 a grower or processor exceeds allowable levels, the testing
16 laboratory must immediately notify the grower or processor from
17 whom the testing laboratory received the sample.
18 Chapter 21. Secure Transporters
19 Sec. 1. A secure transporter may transport cannabis and
20 medical cannabis if the secure transporter complies with this
21 article.
22 Sec. 2. Cannabis and medical cannabis transported under this
23 article must be:
24 (1) packed in a tamper resistant and tamper evident package;
25 (2) clearly marked as to quantity and contents; and
26 (3) securely stored in the vehicle used for transport.
27 Sec. 3. The secure transporter shall proceed as directly and
28 expeditiously as practicable from the shipping location to the
29 receiving location.
30 Sec. 4. The person who ships the cannabis or medical cannabis
31 shall provide the secure transporter with a shipping manifest
32 clearly stating the:
33 (1) exact quantity of cannabis or medical cannabis that is
34 being transported;
35 (2) address of the shipping location;
36 (3) address of the receiving location;
37 (4) identification of the person transporting the material; and
38 (5) time the person transporting the material left the shipping
39 location.
40 Sec. 5. The secure transporter shall keep the shipping manifest
41 in the transporter's possession at all times.
42 Sec. 6. The commission may adopt rules to regulate the secure
2022 IN 175—LS 6515/DI 106 29
1 transport of cannabis and medical cannabis. The commission may
2 authorize a transporter to transport cannabis and medical
3 cannabis out of state.
4 Chapter 22. Integrated Facilities
5 Sec. 1. If and to the extent authorized by a permit issued by the
6 commission, an integrated facility may perform the functions of at
7 least two (2) of the following:
8 (1) A grower.
9 (2) A processor.
10 (3) A secure transporter.
11 (4) A dispensary.
12 An integrated facility may not perform the function of a testing
13 laboratory.
14 Sec. 2. Except as provided in section 3 of this chapter, a
15 requirement that applies to:
16 (1) a grower;
17 (2) a processor;
18 (3) a secure transporter; or
19 (4) a dispensary;
20 also applies to an integrated facility carrying out the functions of
21 that entity.
22 Sec. 3. (a) The commission may exempt an integrated facility
23 from a specific rule governing a grower, processor, secure
24 transporter, or dispensary, if following the rule would result in
25 needless duplication.
26 (b) The commission may adopt rules under IC 4-22-2 to regulate
27 an integrated facility.
28 Chapter 23. Reports
29 Sec. 1. The commission shall, not later than December 31 of
30 each year, submit a report concerning the medical cannabis
31 program to the legislative council, the governor, and the chief
32 justice of Indiana. The report to the legislative council must be in
33 an electronic format under IC 5-14-6.
34 Chapter 24. Civil Penalties
35 Sec. 1. The commission may assess a penalty of not more than
36 ten thousand dollars ($10,000) for each violation of this article or
37 a rule adopted under this article. In addition, the commission may
38 impose an additional penalty of not more than one thousand
39 dollars ($1,000) for each day of a continuing violation.
40 Sec. 2. (a) In determining the amount of a civil penalty imposed
41 under this chapter, the commission shall consider the following:
42 (1) The seriousness of the violation.
2022 IN 175—LS 6515/DI 106 30
1 (2) The potential harm resulting from the violation to
2 patients, caregivers, or the general public.
3 (3) The willfulness of the violation.
4 (4) Any previous violations.
5 (5) The economic benefit that accrued to the person who
6 committed the violation.
7 (b) If the commission finds that the:
8 (1) violation did not threaten the safety or health of a patient,
9 a caregiver, or the general public; and
10 (2) violator took immediate action to remedy the violation
11 upon learning of it;
12 the commission may issue a written warning instead of assessing a
13 civil penalty.
14 Sec. 3. In addition to the civil penalty described in this chapter,
15 and any other penalty authorized by law, the commission may
16 revoke or suspend a person's permit or identification card.
17 Chapter 25. Research
18 Sec. 1. The commission may provide assistance to universities,
19 research facilities, pharmaceutical companies, state agencies, and
20 similar entities that wish to conduct research concerning medical
21 cannabis.
22 Sec. 2. The commission may authorize persons conducting
23 research on medical cannabis to obtain, possess, transport, test,
24 and use medical cannabis for research purposes, under terms and
25 conditions established by the commission. The commission shall
26 issue appropriate documentation to allow persons to obtain
27 medical cannabis for research purposes.
28 Chapter 26. Use of Medical Cannabis Inadmissible
29 Sec. 1. A person's use of medical cannabis under this article is
30 not admissible as evidence against an employer in an action for
31 negligent hiring.
32 SECTION 6. IC 7.1-9 IS ADDED TO THE INDIANA CODE AS A
33 NEW ARTICLE TO READ AS FOLLOWS [EFFECTIVE JULY 1,
34 2022]:
35 ARTICLE 9. INDIANA CANNABIS COMMISSION
36 Chapter 1. Definitions
37 Sec. 1. The definitions in IC 7.1-8-1-1 apply throughout this
38 article.
39 Chapter 2. General Provisions
40 Sec. 1. The Indiana cannabis commission (commission) is
41 established as an agency of the state for purposes of administering
42 the medical cannabis program. The commission consists of the
2022 IN 175—LS 6515/DI 106 31
1 executive commission, an executive director hired by the executive
2 commission to oversee the day to day operations of the
3 commissions, and other employees employed by the commission.
4 Sec. 2. (a) The executive commission shall supervise and oversee
5 the operations of the commission. The executive commission
6 consists of the following commissioners:
7 (1) A physician licensed under IC 25-22.5, appointed by the
8 governor.
9 (2) A physician licensed under IC 25-22.5 who is primarily
10 engaged in pediatric medicine, appointed by the governor.
11 (3) A pharmacist licensed under IC 25-26, appointed by the
12 governor.
13 (4) An attorney licensed to practice law in Indiana with
14 experience in health care law, appointed by the governor.
15 (5) A biochemist, appointed by the governor.
16 (6) A banker or broker with experience in agricultural
17 lending, appointed by the governor.
18 (7) The state seed commissioner or the commissioner's
19 designee.
20 (8) The state health commissioner or the commissioner's
21 designee.
22 (9) The attorney general or the attorney general's designee,
23 who serves as a nonvoting member.
24 (10) The superintendent of the state police department or the
25 superintendent's designee, who serves as a nonvoting member.
26 (b) No more than three (3) of the commissioners described in
27 subsection (a)(1) through (a)(6) may be members of the same
28 political party. Each commissioner described in subsection (a)(1)
29 through (a)(6):
30 (1) serves a four (4) year term;
31 (2) serves at the pleasure of the governor; and
32 (3) may be reappointed.
33 (c) A commissioner described in subsection (a)(7) through
34 (a)(10) serves ex officio.
35 Sec. 3. To be eligible for appointment as a commissioner under
36 section 2(a)(1) through 2(a)(6), an individual must have the
37 following qualifications:
38 (1) The individual may not be employed by the state in any
39 other capacity.
40 (2) The individual must have good moral character.
41 (3) The individual must have been a resident of Indiana for at
42 least ten (10) years immediately preceding the appointment.
2022 IN 175—LS 6515/DI 106 32
1 Sec. 4. The governor shall appoint one (1) voting commissioner
2 to serve as chairperson of the executive commission and one (1)
3 voting commissioner to serve as vice chairperson. The vice
4 chairperson shall act as the chairperson if the chairperson is
5 unable to attend a meeting of the executive commission.
6 Sec. 5. A commissioner appointed to fill a vacancy in the
7 membership of the executive commission shall serve only for the
8 unexpired part of the original, vacated term. In all other respects,
9 an appointment to fill a vacancy shall be made in the same manner
10 that an original appointment is made.
11 Sec. 6. As compensation for services, each commissioner is
12 entitled to the minimum salary per diem provided by
13 IC 4-10-11-2.1(b). A commissioner is also entitled to
14 reimbursement for traveling expenses as provided under
15 IC 4-13-1-4 and other expenses actually incurred in connection
16 with the commissioner's duties as provided in the state policies and
17 procedures established by the department of administration and
18 approved by the budget agency.
19 Sec. 7. The executive commission shall hold meetings at the call
20 of the chairperson. The executive commission may establish rules
21 governing meetings, including rules for meetings of subcommittees
22 or working groups.
23 Sec. 8. A majority of voting commissioners constitutes a quorum
24 for the transaction of business.
25 Sec. 9. A commissioner may not solicit or accept a political
26 contribution from a patient, caregiver, or any individual or entity
27 that has a permit or has applied for a permit issued by the
28 commission. However, the right of a commissioner to vote as the
29 commissioner chooses and to express the commissioner's opinions
30 on political subjects and candidates may not be impaired.
31 Chapter 3. Employees and Administration
32 Sec. 1. (a) The executive commission shall appoint an executive
33 director to assist the commission in the efficient administration of
34 its powers and duties.
35 (b) The executive commission shall fix the salary of the executive
36 director, subject to the approval of the budget agency.
37 Sec. 2. The commission has the power to employ all necessary
38 employees, determine their duties, and, subject to the approval of
39 the executive commission and the budget agency, fix their salaries.
40 Chapter 4. Powers and Duties
41 Sec. 1. The chairperson is the presiding officer at the meetings
42 of the executive commission. The chairperson, together with the
2022 IN 175—LS 6515/DI 106 33
1 executive director, shall prepare, certify, and authenticate all
2 proceedings, minutes, records, rules, and regulations of the
3 executive commission. The chairperson shall also perform all other
4 duties as imposed on the chairperson by this title.
5 Sec. 2. The commission has the power to organize its work, to
6 enforce and administer this article and IC 7.1-8, and to enforce and
7 administer the rules adopted by the commission.
8 Sec. 3. The commission shall adopt rules under IC 4-22-2 to
9 prescribe the forms for all applications, documents, permits,
10 medical cannabis identification cards, and licenses used in the
11 administration of this article and IC 7.1-8.
12 Sec. 4. The commission has the following powers:
13 (1) To hold hearings before the commission or its
14 representative.
15 (2) To take testimony and receive evidence.
16 (3) To conduct inquiries with or without a hearing.
17 (4) To receive reports of investigators or other governmental
18 officers and employees.
19 (5) To administer oaths.
20 (6) To subpoena witnesses and to compel them to appear and
21 testify.
22 (7) To certify copies of records of the commission or any other
23 document or record on file with the commission.
24 (8) To fix the form, mode, manner, time, and number of times
25 for the posting or publication of any required notices if not
26 otherwise provided.
27 (9) To adopt rules under IC 4-22-2 to carry out this article
28 and IC 7.1-8.
29 Sec. 5. The commission has the following duties:
30 (1) To establish the medical cannabis program described in
31 IC 7.1-8 and to adopt all necessary rules to implement the
32 program.
33 (2) To implement protocols for the application and issuance
34 of a medical cannabis identification card, including protocols
35 to:
36 (A) prevent fraud;
37 (B) ensure the accuracy of information contained in the
38 application; and
39 (C) protect the privacy of an applicant.
40 (3) To advise the general assembly concerning the medical
41 cannabis program.
42 (4) To encourage research concerning medical cannabis.
2022 IN 175—LS 6515/DI 106 34
1 Chapter 5. Research and Development
2 Sec. 1. To permit and encourage research concerning medical
3 cannabis:
4 (1) an accredited institution of higher education with a
5 physical presence in Indiana;
6 (2) a pharmaceutical or agricultural business having a
7 research facility in Indiana;
8 (3) a research facility located in Indiana;
9 (4) a state agency; and
10 (5) a similar entity that wishes to conduct research;
11 may apply to the commission for a license to conduct research
12 concerning medical cannabis.
13 Sec. 2. An application under this chapter must include the
14 following:
15 (1) The nature of the research project.
16 (2) The names of the individuals who will conduct the
17 research project.
18 (3) The approximate quantity of cannabis that will be used in
19 the research project.
20 (4) The security protocol to be implemented to ensure that
21 cannabis is not diverted for uses other than the research
22 project.
23 (5) Any other information required by the commission.
24 Sec. 3. Upon receipt of a completed application, the commission
25 may issue a research license to the entity. The research license
26 must specifically list the names of each individual participating in
27 the research project who will have custody or control of cannabis
28 for research purposes and the approximate quantity of the
29 cannabis that will be used in the research project.
30 Sec. 4. The commission may charge a reasonable fee for issuance
31 of a research license.
32 SECTION 7. IC 35-48-4-10, AS AMENDED BY P.L.153-2018,
33 SECTION 25, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
34 JULY 1, 2022]: Sec. 10. (a) A person who:
35 (1) knowingly or intentionally:
36 (A) manufactures;
37 (B) finances the manufacture of;
38 (C) delivers; or
39 (D) finances the delivery of;
40 marijuana, hash oil, hashish, or salvia, pure or adulterated; or
41 (2) possesses, with intent to:
42 (A) manufacture;
2022 IN 175—LS 6515/DI 106 35
1 (B) finance the manufacture of;
2 (C) deliver; or
3 (D) finance the delivery of;
4 marijuana, hash oil, hashish, or salvia, pure or adulterated;
5 commits dealing in marijuana, hash oil, hashish, or salvia, a Class A
6 misdemeanor, except as provided in subsections (b) through (d).
7 (b) A person may be convicted of an offense under subsection (a)(2)
8 only if:
9 (1) there is evidence in addition to the weight of the drug that the
10 person intended to manufacture, finance the manufacture of,
11 deliver, or finance the delivery of the drug; or
12 (2) the amount of the drug involved is at least:
13 (A) ten (10) pounds, if the drug is marijuana; or
14 (B) three hundred (300) grams, if the drug is hash oil, hashish,
15 or salvia.
16 (c) The offense is a Level 6 felony if:
17 (1) the person has a prior conviction for a drug offense and the
18 amount of the drug involved is:
19 (A) less than thirty (30) grams of marijuana; or
20 (B) less than five (5) grams of hash oil, hashish, or salvia; or
21 (2) the amount of the drug involved is:
22 (A) at least thirty (30) grams but less than ten (10) pounds of
23 marijuana; or
24 (B) at least five (5) grams but less than three hundred (300)
25 grams of hash oil, hashish, or salvia.
26 (d) The offense is a Level 5 felony if:
27 (1) the person has a prior conviction for a drug dealing offense
28 and the amount of the drug involved is:
29 (A) at least thirty (30) grams but less than ten (10) pounds of
30 marijuana; or
31 (B) at least five (5) grams but less than three hundred (300)
32 grams of hash oil, hashish, or salvia;
33 (2) the:
34 (A) amount of the drug involved is:
35 (i) at least ten (10) pounds of marijuana; or
36 (ii) at least three hundred (300) grams of hash oil, hashish,
37 or salvia; or
38 (B) offense involved a sale to a minor; or
39 (3) the:
40 (A) person is a retailer;
41 (B) marijuana, hash oil, hashish, or salvia is packaged in a
42 manner that appears to be low THC hemp extract; and
2022 IN 175—LS 6515/DI 106 36
1 (C) person knew or reasonably should have known that the
2 product was marijuana, hash oil, hashish, or salvia.
3 (e) This section does not apply to a patient, caregiver, medical
4 cannabis organization, or researcher described in IC 7.1-8 if the
5 person is in substantial compliance with the requirements of
6 IC 7.1-8.
7 SECTION 8. IC 35-48-4-11, AS AMENDED BY P.L.153-2018,
8 SECTION 26, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
9 JULY 1, 2022]: Sec. 11. (a) A person who:
10 (1) knowingly or intentionally possesses (pure or adulterated)
11 marijuana, hash oil, hashish, or salvia;
12 (2) knowingly or intentionally grows or cultivates marijuana; or
13 (3) knowing that marijuana is growing on the person's premises,
14 fails to destroy the marijuana plants;
15 commits possession of marijuana, hash oil, hashish, or salvia, a Class
16 B misdemeanor, except as provided in subsections (b) through (c).
17 (b) The offense described in subsection (a) is a Class A
18 misdemeanor if:
19 (1) the person has a prior conviction for a drug offense; or
20 (2) the:
21 (A) marijuana, hash oil, hashish, or salvia is packaged in a
22 manner that appears to be low THC hemp extract; and
23 (B) person knew or reasonably should have known that the
24 product was marijuana, hash oil, hashish, or salvia.
25 (c) The offense described in subsection (a) is a Level 6 felony if:
26 (1) the person has a prior conviction for a drug offense; and
27 (2) the person possesses:
28 (A) at least thirty (30) grams of marijuana; or
29 (B) at least five (5) grams of hash oil, hashish, or salvia.
30 (d) This section does not apply to a patient, caregiver, medical
31 cannabis organization, or researcher described in IC 7.1-8 if the
32 person is in substantial compliance with the requirements of
33 IC 7.1-8.
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