Introduced Version
SENATE BILL No. 197
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 2-5-46; IC 7.1-8; IC 15-15-13; IC 15-16-2-36;
IC 24-4-21; IC 24-4-22.
Synopsis: Cannabis regulation. Establishes the cannabis compliance
advisory committee to review and evaluate certain rules, laws, and
programs. Establishes the cannabis compliance commission to regulate
all forms of legal cannabis in Indiana, including hemp and low THC
hemp extract. Makes conforming amendments.
Effective: July 1, 2022.
Pol Jr.
January 10, 2022, read first time and referred to Committee on Commerce and Technology.
2022 IN 197—LS 6959/DI 77 Introduced
Second Regular Session of the 122nd General Assembly (2022)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
Constitution) is being amended, the text of the existing provision will appear in this style type,
additions will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional
provision adopted), the text of the new provision will appear in this style type. Also, the
word NEW will appear in that style type in the introductory clause of each SECTION that adds
a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
between statutes enacted by the 2021 Regular Session of the General Assembly.
SENATE BILL No. 197
A BILL FOR AN ACT to amend the Indiana Code concerning
agriculture and animals.
Be it enacted by the General Assembly of the State of Indiana:
1 SECTION 1. IC 2-5-46 IS ADDED TO THE INDIANA CODE AS
2 A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY
3 1, 2022]:
4 Chapter 46. Cannabis Compliance Advisory Committee
5 Sec. 1. The following definitions apply throughout this chapter:
6 (1) "Advisory committee" means the cannabis compliance
7 advisory committee established by section 2 of this chapter.
8 (2) "Cannabis compliance commission" means the
9 commission established by IC 7.1-8-2-1.
10 Sec. 2. The cannabis compliance advisory committee is
11 established.
12 Sec. 3. (a) The advisory committee consists of the following four
13 (4) voting members and five (5) nonvoting members:
14 (1) One (1) legislative member appointed by the speaker of the
15 house of representatives.
16 (2) One (1) legislative member appointed by the minority
17 leader of the house of representatives.
2022 IN 197—LS 6959/DI 77 2
1 (3) One (1) legislative member appointed by the president pro
2 tempore of the senate.
3 (4) One (1) legislative member appointed by the minority
4 leader of the senate.
5 (5) One (1) representative of law enforcement, appointed as a
6 nonvoting member by the chairperson of the legislative
7 council.
8 (6) The commissioner of the department of state revenue or
9 the commissioner's designee, who serves ex officio as a
10 nonvoting member.
11 (7) The director of the department of agriculture or the
12 director's designee, who serves ex officio as a nonvoting
13 member.
14 (8) The state seed commissioner, who serves ex officio as a
15 nonvoting member.
16 (9) The executive director of the cannabis compliance
17 commission or the executive director's designee, who serves
18 ex officio as a nonvoting member.
19 (b) The chairperson of the legislative council shall annually
20 select one (1) of the voting members to serve as chairperson.
21 Sec. 4. (a) A legislative member of the advisory committee may
22 be removed at any time by the appointing authority who appointed
23 the legislative member.
24 (b) An appointed member of the advisory committee may be
25 removed at any time by the appointing authority who appointed
26 the member.
27 (c) If a vacancy exists on the advisory committee, the appointing
28 authority who appointed the former member whose position has
29 become vacant shall appoint an individual to fill the vacancy.
30 Sec. 5. Each member of the advisory committee is entitled to
31 receive the same per diem, mileage, and travel allowances paid to
32 individuals who serve as legislative and lay members, respectively,
33 of interim study committees established by the legislative council.
34 Sec. 6. The affirmative votes of a majority of the voting
35 members appointed to the advisory committee are required for the
36 advisory committee to take action on any measure, including final
37 reports.
38 Sec. 7. The advisory committee shall do the following:
39 (1) Review rules adopted by the cannabis compliance
40 commission.
41 (2) Review legislative proposals suggested by the cannabis
42 compliance commission.
2022 IN 197—LS 6959/DI 77 3
1 (3) Evaluate the cannabis research and development program
2 under IC 7.1-8-5.
3 (4) Evaluate the operation of the hemp program under
4 IC 15-15-13.
5 (5) Evaluate the processing, packaging, distribution, and sale
6 of low THC hemp extract under IC 24-4-21 through
7 IC 24-4-22.
8 (6) Consider any other matter that relates to cannabis.
9 SECTION 2. IC 7.1-8 IS ADDED TO THE INDIANA CODE AS A
10 NEW ARTICLE TO READ AS FOLLOWS [EFFECTIVE JULY 1,
11 2022]:
12 ARTICLE 8. CANNABIS REGULATION
13 Chapter 1. Definitions
14 Sec. 1. As used in this article, "cannabis" means cannabis that
15 is legal under Indiana law, including hemp and low THC hemp
16 extract.
17 Sec. 2. As used in this article, "commission" refers to the
18 cannabis compliance commission established by IC 7.1-8-2-1.
19 Sec. 3. As used in this article, "executive committee" refers to
20 the cannabis compliance commission executive committee
21 established by IC 7.1-8-2-2.
22 Chapter 2. General Provisions
23 Sec. 1. (a) The cannabis compliance commission is established
24 to regulate the growth, processing, distribution, and sale of legal
25 cannabis in Indiana, including hemp and low THC hemp extract.
26 (b) The commission consists of:
27 (1) the cannabis compliance commission executive committee;
28 (2) the executive director; and
29 (3) other employees necessary to carry out the duties of the
30 commission.
31 Sec. 2. (a) The cannabis compliance commission executive
32 committee is established.
33 (b) The cannabis compliance commission executive committee
34 consists of four (4) commissioners, who shall hire the executive
35 director and direct and oversee the operation of the commission.
36 Sec. 3. (a) The cannabis compliance commission executive
37 committee commissioners shall be appointed by the governor.
38 (b) A commissioner is eligible for reappointment.
39 (c) Not more than two (2) commissioners may belong to the
40 same political party.
41 (d) A commissioner shall be appointed to a four (4) year term.
42 (e) A commissioner serves the commissioner's term at the
2022 IN 197—LS 6959/DI 77 4
1 pleasure of the governor.
2 Sec. 4. To be eligible for appointment as a commissioner, an
3 individual must have the following qualifications:
4 (1) The individual may not be employed by the state in any
5 other capacity.
6 (2) The individual must have good moral character.
7 (3) The individual must have been a resident of Indiana for at
8 least five (5) years immediately preceding the appointment.
9 Sec. 5. (a) The governor shall appoint, from among the four (4)
10 commissioners appointed under section 3(a) of this chapter:
11 (1) one (1) commissioner to serve as chairperson; and
12 (2) one (1) commissioner to serve as vice chairperson;
13 of the executive committee.
14 (b) The vice chairperson shall act as the chairperson if the
15 chairperson is unable to attend a meeting of the executive
16 committee.
17 Sec. 6. A commissioner appointed to fill a vacancy in the
18 executive committee shall serve only for the unexpired part of the
19 original vacated term. In all other respects, an appointment to fill
20 a vacancy shall be made in the same manner that an original
21 appointment is made.
22 Sec. 7. As compensation for services, each commissioner is
23 entitled to the minimum salary per diem provided by
24 IC 4-10-11-2.1(b). A commissioner is also entitled to
25 reimbursement for traveling expenses as provided under
26 IC 4-13-1-4 and other expenses actually incurred in connection
27 with the commissioner's duties as provided in the state policies and
28 procedures established by the Indiana department of
29 administration and approved by the budget agency.
30 Sec. 8. (a) Each commissioner shall execute:
31 (1) a surety bond in the amount of ten thousand dollars
32 ($10,000), with surety approved by the governor; and
33 (2) an oath of office.
34 (b) The surety bond and the oath of office shall be filed in the
35 office of the secretary of state.
36 Sec. 9. The required surety bond executed and filed on behalf of
37 a commissioner shall be made payable to the state of Indiana and
38 conditioned upon the faithful discharge of the commissioner's
39 duties.
40 Sec. 10. (a) The executive committee shall hold meetings at the
41 call of the chairperson.
42 (b) The executive committee may establish rules governing
2022 IN 197—LS 6959/DI 77 5
1 meetings.
2 Sec. 11. (a) Three (3) commission commissioners constitute a
3 quorum for the transaction of business.
4 (b) Action of the executive committee may be taken only upon
5 the affirmative votes of at least two (2) commissioners. If a vote is
6 a tie, the position for which the chairperson voted prevails, as long
7 as that position has received the affirmative votes of at least two (2)
8 commissioners.
9 Sec. 12. A commissioner may not solicit or accept a political
10 contribution from any individual or entity that has a permit or has
11 applied for a permit issued by the commission, or that is otherwise
12 regulated by the commission. However, the right of a commissioner
13 to vote as the commissioner chooses and to express the
14 commissioner's opinions on political subjects and candidates may
15 not be impaired.
16 Chapter 3. Employees and Administration
17 Sec. 1. (a) The executive committee shall appoint an executive
18 director to assist the commission in the efficient administration of
19 its powers and duties.
20 (b) The commission executive committee shall fix the salary of
21 the executive director, subject to the approval of the budget
22 agency.
23 (c) The executive director:
24 (1) is the executive agent of the executive committee in the
25 administration of the committee's policies; and
26 (2) has the other powers and duties delegated to the executive
27 director by the executive committee or specifically assigned to
28 the executive director by statute.
29 Sec. 2. The executive director has the power to employ all
30 necessary employees, determine their duties, and, subject to the
31 approval of the executive committee and the budget agency, fix
32 their salaries.
33 Chapter 4. Powers and Duties
34 Sec. 1. The chairperson is the presiding officer at the meetings
35 of the executive committee. The chairperson, together with the
36 executive director, shall prepare, certify, and authenticate all
37 proceedings, minutes, records, rules, and regulations of the
38 executive committee. The chairperson shall also perform all other
39 duties as imposed on the chairperson by this article.
40 Sec. 2. (a) The commission has the general power to organize its
41 work, and to enforce and administer:
42 (1) this article;
2022 IN 197—LS 6959/DI 77 6
1 (2) IC 15-15-13 (hemp);
2 (3) IC 24-4-21 (distribution of low THC hemp extract);
3 (4) IC 24-4-22 (sale of low THC hemp extract); and
4 (5) rules adopted by the commission.
5 (b) The commission has the following additional powers and
6 duties:
7 (1) To have a designated agent, upon presentation of proper
8 credentials, enter upon private or public property to inspect
9 for and investigate possible violations of:
10 (A) this article;
11 (B) IC 15-15-13 (hemp);
12 (C) IC 24-4-21 (distribution of low THC hemp extract);
13 (D) IC 24-4-22 (sale of low THC hemp extract); and
14 (E) rules adopted by the commission.
15 (2) To employ or contract for the legal, professional, and
16 other personnel and assistance that is necessary for the
17 efficient performance of the commission's duties.
18 (3) To issue orders to:
19 (A) secure compliance with:
20 (i) this article;
21 (ii) IC 15-15-13 (hemp);
22 (iii) IC 24-4-21 (distribution of low THC hemp extract);
23 (iv) IC 24-4-22 (sale of low THC hemp extract); and
24 (v) rules adopted by the commission; and
25 (B) assess civil penalties.
26 (4) To bring an appropriate action in court to:
27 (A) enforce any order of the commission;
28 (B) collect any penalties or fees; and
29 (C) procure or secure compliance with:
30 (i) this article;
31 (ii) IC 15-15-13 (hemp);
32 (iii) IC 24-4-21 (distribution of low THC hemp extract);
33 (iv) IC 24-4-22 (sale of low THC hemp extract); and
34 (v) rules adopted by the commission.
35 (5) To hold hearings before the commission or its
36 representative.
37 (6) To take testimony and receive evidence.
38 (7) To conduct inquiries with or without a hearing.
39 (8) To receive reports of investigators or other governmental
40 officers and employees.
41 (9) To administer oaths.
42 (10) To subpoena witnesses and to compel them to appear and
2022 IN 197—LS 6959/DI 77 7
1 testify.
2 (11) To certify copies of records of the commission or any
3 other document or record on file with the commission.
4 (12) To fix the form, mode, manner, time, and number of
5 times for the posting or publication of any required notices if
6 not otherwise provided.
7 (13) To adopt rules under IC 4-22-2 to carry out:
8 (A) this article;
9 (B) IC 15-15-13 (hemp);
10 (C) IC 24-4-21 (distribution of low THC hemp extract);
11 and
12 (D) IC 24-4-22 (sale of low THC hemp extract).
13 (14) To establish fees for licenses, permits, and applications.
14 (15) To retain and consult with experts and other consultants.
15 (16) To carry out any other duties assigned by statute.
16 Sec. 3. The commission shall adopt rules under IC 4-22-2 to
17 prescribe the forms for all applications, documents, permits, and
18 licenses used in the administration of:
19 (1) this article;
20 (2) IC 15-15-13 (hemp);
21 (3) IC 24-4-21 (distribution of low THC hemp extract);
22 (4) IC 24-4-22 (sale of low THC hemp extract); and
23 (5) rules adopted by the commission.
24 Sec. 4. The commission has the following duties:
25 (1) To regulate, enforce, and carry out the provisions of
26 IC 15-15-13 (hemp).
27 (2) To regulate, enforce, and carry out the provisions of
28 IC 24-4-21 and IC 24-4-22 (distribution and sale of low THC
29 hemp extract).
30 (3) To adopt protocols to:
31 (A) prevent fraud;
32 (B) ensure the accuracy of information contained in an
33 application relating to hemp and low THC hemp extract;
34 and
35 (C) protect the privacy of an applicant.
36 (4) To encourage research concerning cannabis and issue
37 research licenses as described in IC 7.1-8-5.
38 Chapter 5. Research and Development
39 Sec. 1. To permit and encourage research concerning cannabis
40 the following may apply to the commission for a license to conduct
41 research concerning cannabis:
42 (1) An accredited institution of higher education with a
2022 IN 197—LS 6959/DI 77 8
1 physical presence in Indiana.
2 (2) A pharmaceutical or agricultural business having a
3 research facility in Indiana.
4 Sec. 2. An application under this chapter must include the
5 following:
6 (1) The nature of the research project.
7 (2) The names of the individuals who will conduct the
8 research project.
9 (3) The approximate quantity of cannabis that will be used in
10 the research project.
11 (4) The security protocol to be implemented to ensure that
12 cannabis is not diverted for uses other than the research
13 project.
14 (5) Any other information required by the commission.
15 Sec. 3. Upon receipt of a completed application, the commission
16 may issue a research license to the accredited institution of higher
17 education or the pharmaceutical or agricultural business. The
18 research license must specifically list:
19 (1) the names of each individual participating in the research
20 project who will have custody or control of cannabis for
21 research purposes; and
22 (2) the approximate quantity of cannabis that will be used in
23 the research project.
24 Sec. 4. The commission may charge a reasonable fee for issuance
25 of a research license.
26 SECTION 3. IC 15-15-13-0.5, AS ADDED BY P.L.165-2014,
27 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
28 JULY 1, 2022]: Sec. 0.5. The state seed commissioner cannabis
29 compliance commission shall administer this chapter.
30 SECTION 4. IC 15-15-13-1, AS AMENDED BY P.L.190-2019,
31 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
32 JULY 1, 2022]: Sec. 1. (a) Nothing in this chapter authorizes any
33 person to violate any federal law or regulation.
34 (b) Nothing in this chapter authorizes the state seed commissioner
35 to regulate a hemp product.
36 SECTION 5. IC 15-15-13-2, AS ADDED BY P.L.165-2014,
37 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
38 JULY 1, 2022]: Sec. 2. As used in this chapter, "agricultural hemp
39 seed" means Cannabis sativa seed that meets any labeling, quality, and
40 other standards set by the state seed commissioner cannabis
41 compliance commission and that is intended for sale or is sold to, or
42 purchased by, licensed growers for planting.
2022 IN 197—LS 6959/DI 77 9
1 SECTION 6. IC 15-15-13-2.5 IS ADDED TO THE INDIANA
2 CODE AS A NEW SECTION TO READ AS FOLLOWS
3 [EFFECTIVE JULY 1, 2022]: Sec. 2.5. As used in this chapter,
4 "cannabis compliance commission" means the cannabis
5 compliance commission established by IC 7.1-8-2-1.
6 SECTION 7. IC 15-15-13-7, AS AMENDED BY P.L.190-2019,
7 SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
8 JULY 1, 2022]: Sec. 7. (a) Subject to section 15 of this chapter, The
9 production of, possession of, scientific study of, and commerce in hemp
10 is authorized in Indiana. Hemp is subject to regulation by the state seed
11 commissioner. cannabis compliance commission. The state seed
12 commissioner cannabis compliance commission shall adopt rules to
13 oversee the licensing, production, and management of:
14 (1) hemp; and
15 (2) agricultural hemp seed.
16 (b) All growers and handlers must have a hemp license issued by
17 the state seed commissioner. cannabis compliance commission.
18 Growers and handlers engaged in the production of agricultural hemp
19 seed must also have an agricultural hemp seed production license.
20 (c) An application for a hemp license or agricultural hemp seed
21 production license must include the following:
22 (1) The name and address of the applicant.
23 (2) The name and address of the hemp operation of the applicant.
24 (3) The global positioning system coordinates and legal
25 description of the property used for the hemp operation.
26 (4) If the hemp license or agricultural hemp seed production
27 license application is made by a grower, the acreage size of the
28 field where the hemp will be grown.
29 (5) A statement signed by the applicant, under penalty of perjury,
30 that the person applying for the hemp license or agricultural hemp
31 seed production license has not been convicted of a drug related
32 felony or misdemeanor in the previous ten (10) years.
33 (6) A written consent allowing the state police department to
34 conduct a state or national criminal history background check.
35 (7) A written consent allowing the state police department, the
36 state seed commissioner, cannabis compliance commission, or
37 the state seed commissioner's cannabis compliance
38 commission's authorized representative, if a license is issued to
39 the applicant, to conduct aerial inspections and to enter the
40 premises on which the hemp is grown to conduct physical
41 inspections of hemp planted and grown by the applicant, and to
42 ensure the plants meet the definition of hemp as set forth in
2022 IN 197—LS 6959/DI 77 10
1 section 6 of this chapter.
2 (8) A nonrefundable application fee, which must include the
3 amount necessary to conduct a state or national criminal history
4 background check, in an amount determined by the state seed
5 commissioner. cannabis compliance commission.
6 (9) Any other information required by the state seed
7 commissioner. cannabis compliance commission.
8 (d) Rules adopted by the state seed commissioner before July 1,
9 2022, concerning hemp are considered, after June 30, 2022, rules
10 of the cannabis compliance commission.
11 SECTION 8. IC 15-15-13-8, AS AMENDED BY P.L.156-2020,
12 SECTION 62, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
13 JULY 1, 2022]: Sec. 8. (a) Each license application received under this
14 chapter must be processed as follows:
15 (1) Upon receipt of a license application, the state seed
16 commissioner cannabis compliance commission shall do one (1)
17 of the following:
18 (A) Forward a copy of the application to the state police
19 department. The state police department shall then do the
20 following:
21 (i) Perform a state or national criminal history background
22 check of the applicant.
23 (ii) Determine if the requirements under section 7(c)(5) of
24 this chapter concerning prior criminal convictions have been
25 met.
26 (iii) Return the application to the state seed commissioner
27 cannabis compliance commission along with the state
28 police department's determinations and a copy of the state or
29 national criminal history background check.
30 (B) Do the following:
31 (i) Perform a state or national criminal history background
32 check of the applicant under the same standards as the state
33 police department would perform.
34 (ii) Determine if the requirements under section 7(c)(5) of
35 this chapter concerning prior criminal convictions have been
36 met.
37 (2) The state seed commissioner cannabis compliance
38 commission shall review the license application and the criminal
39 history background check.
40 (b) If the state seed commissioner cannabis compliance
41 commission determines that all the requirements under this chapter
42 have been met and that a license should be granted to the applicant, the
2022 IN 197—LS 6959/DI 77 11
1 state seed commissioner cannabis compliance commission shall
2 approve the application for issuance of a license.
3 (c) A hemp license or agricultural hemp seed production license
4 expires on December 31 of the year for which the license was issued,
5 unless revoked. A hemp license or agricultural hemp seed production
6 license may be renewed in accordance with rules adopted by the state
7 seed commissioner cannabis compliance commission and is
8 nontransferable.
9 SECTION 9. IC 15-15-13-9, AS AMENDED BY P.L.190-2019,
10 SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
11 JULY 1, 2022]: Sec. 9. (a) An agricultural hemp seed production
12 license issued under this chapter authorizes a grower or handler to
13 produce and handle agricultural hemp seed for sale to licensed hemp
14 growers and handlers. A seller of agricultural hemp seed shall ensure
15 that the seed complies with any standards set by the state seed
16 commissioner. cannabis compliance commission. The state seed
17 commissioner cannabis compliance commission shall make available
18 to growers information that identifies sellers of agricultural hemp seed.
19 (b) A person who sells agricultural hemp seed to a grower must be
20 a seed distributor who has a permit under IC 15-15-1-34.
21 (c) All growers and handlers must keep records in accordance with
22 rules adopted by the state seed commissioner. cannabis compliance
23 commission. Upon at least three (3) days notice, the state seed
24 commissioner cannabis compliance commission may audit the
25 required records during normal business hours. The state seed
26 commissioner cannabis compliance commission may conduct an
27 audit for the purpose of ensuring compliance with:
28 (1) this chapter;
29 (2) rules adopted by the state seed commissioner; cannabis
30 compliance commission; or
31 (3) hemp license or agricultural hemp seed production license
32 requirements, terms, and conditions.
33 (d) In addition to an audit conducted in accordance with subsection
34 (c), the state seed commissioner cannabis compliance commission
35 may inspect independently, or in cooperation with the state police
36 department, a federal law enforcement agency, or a local law
37 enforcement agency, any hemp crop during the crop's growth phase and
38 take a representative composite sample for field analysis. If a crop
39 contains an average delta-9-tetrahydrocannabinol (THC) concentration
40 exceeding three-tenths of one percent (0.3%) on a dry weight basis, the
41 state seed commissioner cannabis compliance commission may
42 detain, seize, or embargo the crop.
2022 IN 197—LS 6959/DI 77 12
1 (e) The state seed commissioner cannabis compliance commission
2 may revoke a license issued under this chapter to a person that fails to
3 cooperate with:
4 (1) the state seed commissioner; cannabis compliance
5 commission;
6 (2) the state police;
7 (3) a federal law enforcement agency; or
8 (4) a local law enforcement agency;
9 in an inspection, or in the taking of a sample, under subsection (d).
10 (f) A failure to cooperate described in subsection (e) constitutes
11 probable cause for the state seed commissioner, cannabis compliance
12 commission, state police, federal law enforcement agency, or local law
13 enforcement agency to search the premises of the licensee's hemp
14 operation.
15 (g) If the state police department, a federal law enforcement agency,
16 or a local law enforcement agency cooperates with the state seed
17 commissioner cannabis compliance commission in the detention,
18 seizure, or embargo of a crop under this section:
19 (1) the state police department, federal law enforcement agency,
20 or local law enforcement agency; and
21 (2) any officer or employee of the state police department, federal
22 law enforcement agency, or local law enforcement agency who is
23 involved in the detention, seizure, or embargo;
24 is immune from civil liability for the detention, seizure, or embargo.
25 (h) The state seed commissioner cannabis compliance commission
26 may order a hemp crop that is detained, seized, or embargoed for
27 noncompliance with this chapter to be destroyed by the owner.
28 However, except as prohibited by federal law, the grower may appeal
29 to the state seed commissioner cannabis compliance commission for
30 the hemp crop to be diverted to a willing licensed processor for
31 processing and sale for industrial use. A hemp crop that is detained,
32 seized, or embargoed may not be used for cannabidiol, other extracts,
33 oil, food, or cosmetic products that are used for humans or animals.
34 (i) A grower shall reimburse the state seed commissioner cannabis
35 compliance commission for the cost of testing conducted on the
36 grower's crop under this section.
37 SECTION 10. IC 15-15-13-9.5, AS ADDED BY P.L.190-2019,
38 SECTION 11, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
39 JULY 1, 2022]: Sec. 9.5. (a) A person who is a handler licensed under
40 this section may distribute clones and other nonseed propagative
41 materials of a hemp plant using the person's own labeling, if the
42 distributor does the following:
2022 IN 197—LS 6959/DI 77 13
1 (1) Complies with the requirements of this chapter.
2 (2) Reports the variety and quantity of each variety of the
3 propagative material of plant sold.
4 (3) Pays the inspection fee on the basis of the report.
5 (4) Labels the propagative material with the information required
6 by the state seed commissioner. cannabis compliance
7 commission.
8 (5) Keeps records to accurately determine the named varieties and
9 the number of plants of each variety distributed.
10 (6) Grants the state seed commissioner cannabis compliance
11 commission or the state seed commissioner's cannabis
12 compliance commission's authorized representative access to
13 examine the handler's records and verify the quantity and each
14 variety of propagative material distributed.
15 (7) Report, under oath, to the state seed commissioner cannabis
16 compliance commission on forms furnished by the state seed
17 commissioner cannabis compliance commission each variety
18 and quantity of propagative material sold during each semiannual
19 period.
20 (8) Any other information or conditions stated in the application.
21 (b) The state seed commissioner cannabis compliance commission
22 may revoke a handler's license if the commissioner commission
23 determines any of the following:
24 (1) That the licensee has not complied with the requirements
25 under this chapter.
26 (2) The report required in subsection (a) has not been submitted
27 and is more than ten (10) days late.
28 (3) The report required in subsection (a) contained false
29 information.
30 (4) The labeling requirements under this chapter have not been
31 met.
32 (c) If the inspection fee has not been paid and is more than ten (10)
33 days late, the state seed commissioner cannabis compliance
34 commission shall assess a late fee.
35 (d) Each year the:
36 (1) report required under subsection (a)(7); and
37 (2) inspection fees required under this chapter;
38 for the period beginning on January 1 and ending on June 30 and for
39 the period beginning on July 1 and ending on December 31 are due not
40 more than thirty (30) days after the end of the semiannual period.
41 SECTION 11. IC 15-15-13-10, AS ADDED BY P.L.165-2014,
42 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
2022 IN 197—LS 6959/DI 77 14
1 JULY 1, 2022]: Sec. 10. The amount of any fees charged growers and
2 handlers by the state seed commissioner cannabis compliance
3 commission under this chapter must be sufficient to cover the cost of
4 the administration of this chapter, including the cost of conducting
5 audits and testing.
6 SECTION 12. IC 15-15-13-11, AS AMENDED BY P.L.190-2019,
7 SECTION 12, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
8 JULY 1, 2022]: Sec. 11. Only a hemp licensee, the licensee's designee,
9 or the licensee's agents may be permitted to transport hemp off a
10 production site. When transporting hemp off the production site, the
11 hemp licensee, designee, or agent shall have in the licensee's,
12 designee's, or agent's possession the licensing documents from the state
13 seed commissioner cannabis compliance commission evidencing that
14 the hemp is from certified seed produced by a licensed grower.
15 SECTION 13. IC 15-15-13-12, AS AMENDED BY P.L.156-2020,
16 SECTION 63, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
17 JULY 1, 2022]: Sec. 12. The state seed commissioner cannabis
18 compliance commission is responsible for the following:
19 (1) Monitoring the hemp grown by any license holder.
20 (2) Conducting random testing of the hemp for compliance with
21 tetrahydrocannabinol (THC) levels. The state seed commissioner
22 cannabis compliance commission may enter into agreements
23 with one (1) or more laboratories selected by the Indiana state
24 police department to perform testing under this subdivision.
25 (3) Establishing necessary testing criteria and protocols, including
26 a procedure for testing, using post decarboxylation or other
27 similarly reliable methods, for delta-9-tetrahydrocannabinol
28 concentration levels of the hemp produced.
29 (4) Establishing the minimum number of acres to be planted
30 under each license issued under this chapter.
31 (5) Regulating any propagative material of a hemp plant.
32 SECTION 14. IC 15-15-13-13, AS AMENDED BY P.L.190-2019,
33 SECTION 14, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
34 JULY 1, 2022]: Sec. 13. (a) Subject to section 13.5 of this chapter, in
35 addition to any other liability or penalty provided by law, the state seed
36 commissioner cannabis compliance commission may revoke or refuse
37 to issue or renew a hemp license or an agricultural hemp seed
38 production license and may impose a civil penalty for a violation of:
39 (1) a license requirement;
40 (2) license terms or conditions;
41 (3) a rule relating to growing or handling hemp; or
42 (4) section 19 of this chapter.
2022 IN 197—LS 6959/DI 77 15
1 (b) The state seed commissioner cannabis compliance commission
2 may not impose a civil penalty under this section that exceeds two
3 thousand five hundred dollars ($2,500).
4 (c) The state seed commissioner cannabis compliance commission
5 may revoke or refuse to issue or renew a hemp license or an
6 agricultural hemp seed production license for a violation of any rule of
7 the state seed commissioner cannabis compliance commission that
8 pertains to agricultural operations or activities other than hemp
9 growing or handling.
10 (d) Any civil penalties collected under this section shall be
11 transferred to the Indiana state department of agriculture and used for
12 hemp marketing and research purposes.
13 (e) In addition to payment of any civil penalty imposed under this
14 section, a person who commits a violation described in subsection (a)
15 shall reimburse the state seed commissioner cannabis compliance
16 commission for any costs incurred by the state seed commissioner
17 cannabis compliance commission for laboratory testing of material
18 pertaining to the violation.
19 SECTION 15. IC 15-15-13-13.5, AS AMENDED BY P.L.156-2020,
20 SECTION 64, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
21 JULY 1, 2022]: Sec. 13.5. (a) Except as provided in subsection (b), the
22 state seed commissioner cannabis compliance commission shall give
23 a person who negligently violates this chapter a reasonable time,
24 determined by the state seed commissioner, cannabis compliance
25 commission, to correct the violation without imposing a penalty under
26 section 13 of this chapter. However, the state seed commissioner
27 cannabis compliance commission may require the person who
28 committed the violation to comply with a corrective action plan
29 determined by the state seed commissioner cannabis compliance
30 commission and report to the state seed commissioner cannabis
31 compliance commission on compliance with the corrective action
32 plan.
33 (b) A person who commits a negligent violation of this chapter three
34 (3) times in a five (5) year period shall immediately be ineligible to
35 produce hemp for five (5) years.
36 (c) If the state seed commissioner cannabis compliance
37 commission believes that a person has knowingly or intentionally
38 violated this chapter, the state seed commissioner cannabis
39 compliance commission shall notify:
40 (1) the superintendent of the state police department; and
41 (2) the prosecuting attorney of the county in which the violation
42 occurred;
2022 IN 197—LS 6959/DI 77 16
1 of the violation.
2 (d) A person who commits a negligent violation under this chapter
3 is subject to a late fee as established by rule adopted by the state seed
4 commissioner. cannabis compliance commission.
5 SECTION 16. IC 15-15-13-14, AS AMENDED BY P.L.190-2019,
6 SECTION 16, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
7 JULY 1, 2022]: Sec. 14. (a) The state seed commissioner cannabis
8 compliance commission shall adopt rules under IC 4-22-2 to
9 implement and administer this chapter.
10 (b) The state seed commissioner cannabis compliance commission
11 may adopt emergency rules in the manner provided under
12 IC 4-22-2-37.1 to comply with any federal requirement under the
13 Agriculture Improvement Act of 2018 to implement and administer this
14 chapter.
15 SECTION 17. IC 15-15-13-15 IS REPEALED [EFFECTIVE JULY
16 1, 2022]. Sec. 15. Before December 31, 2019, the state seed
17 commissioner, after consultation with the governor, the director of the
18 state department of agriculture, and the superintendent of the state
19 police department, shall submit a plan that monitors and regulates the
20 production of hemp to the United States Department of Agriculture. If
21 the United States Department of Agriculture disapproves the plan, the
22 state seed commissioner shall submit an amended plan to the United
23 States Department of Agriculture.
24 SECTION 18. IC 15-15-13-16, AS ADDED BY P.L.165-2014,
25 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
26 JULY 1, 2022]: Sec. 16. (a) The state seed commissioner cannabis
27 compliance commission shall pay all fees collected under this chapter
28 to the treasurer of Purdue University.
29 (b) The board of trustees of Purdue University shall expend the fees
30 on proper vouchers filed with the treasurer of Purdue University. The
31 treasurer shall pay vouchers for the following expenses:
32 (1) The employment of inspectors and seed analysts.
33 (2) Procuring samples.
34 (3) Printing bulletins giving the results of inspection.
35 (4) Any other expenses of the Purdue University agricultural
36 programs authorized by law and for implementing this chapter.
37 (c) The dean of agriculture of Purdue University shall make and
38 submit a financial report to the governor in such form as the state board
39 of accounts requires, showing the total receipts and expenditures of all
40 fees received under this chapter.
41 (d) Excess funds from the collection of fees under this chapter are
42 subject to IC 15-16-2-36.
2022 IN 197—LS 6959/DI 77 17
1 SECTION 19. IC 15-15-13-17, AS AMENDED BY P.L.190-2019,
2 SECTION 18, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3 JULY 1, 2022]: Sec. 17. (a) The seed commissioner cannabis
4 compliance commission may keep the:
5 (1) names of growers and handlers who are licensed under this
6 chapter; and
7 (2) locations of licensed hemp crops;
8 confidential for purposes of IC 5-14-3.
9 (b) The seed commissioner cannabis compliance commission may
10 share confidential information under subsection (a) with the state
11 police department, law enforcement officers (as defined in
12 IC 35-31.5-2-185), and federal enforcement officers (as defined in
13 IC 35-31.5-2-129).
14 SECTION 20. IC 15-15-13-19, AS ADDED BY P.L.190-2019,
15 SECTION 20, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
16 JULY 1, 2022]: Sec. 19. (a) Hemp bud (as defined in IC 35-48-1-17.2)
17 and hemp flower (as defined in IC 35-48-1-17.3) may be sold only to
18 a processor licensed under this chapter.
19 (b) The state seed commissioner cannabis compliance commission
20 may impose a civil penalty under section 13 of this chapter for a
21 violation of subsection (a).
22 SECTION 21. IC 15-15-13-20, AS ADDED BY P.L.190-2019,
23 SECTION 21, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
24 JULY 1, 2022]: Sec. 20. (a) A person who knowingly or intentionally
25 violates:
26 (1) a term, condition, or requirement of a license issued; or
27 (2) a rule adopted;
28 under this chapter is subject to a civil penalty, determined by the state
29 seed commissioner, cannabis compliance commission, not to exceed
30 ten thousand dollars ($10,000) per violation. The state seed
31 commissioner cannabis compliance commission may also revoke the
32 license of a person who violates this subsection.
33 (b) A person who knowingly or intentionally:
34 (1) grows hemp;
35 (2) handles hemp; or
36 (3) sells agricultural hemp seed;
37 not including smokable hemp (as defined by IC 35-48-1-26.6), and is
38 not licensed under this chapter, commits a Class A misdemeanor.
39 SECTION 22. IC 15-16-2-36, AS AMENDED BY P.L.141-2018,
40 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
41 JULY 1, 2022]: Sec. 36. (a) Notwithstanding any other law, all excess
42 funds accumulated from the fees collected by:
2022 IN 197—LS 6959/DI 77 18
1 (1) the state chemist, under this chapter, IC 15-15-2, IC 15-16-4,
2 IC 15-16-5, and IC 15-19-7; and
3 (2) the state seed commissioner under IC 15-15-1 and, before
4 July 1, 2022, IC 15-15-13; and
5 (3) after June 30, 2022, the cannabis compliance commission
6 under IC 15-15-13;
7 shall be paid to the treasurer of Purdue University. The funds shall be
8 administered by the board of trustees of Purdue University.
9 (b) On approval of the governor and the budget agency, the board
10 of trustees may spend the excess funds for the construction, operation,
11 rehabilitation, and repair of buildings, structures, or other facilities
12 used for:
13 (1) carrying out the purposes of those chapters referred to in
14 subsection (a) under which the fees are collected; or
15 (2) the agricultural programs authorized by law and in support of
16 the purposes of the chapters referred to in subsection (a).
17 SECTION 23. IC 24-4-21-1, AS AMENDED BY P.L.190-2019,
18 SECTION 23, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
19 JULY 1, 2022]: Sec. 1. The following definitions apply throughout this
20 chapter:
21 (1) "Cannabis compliance commission" means the cannabis
22 compliance commission established by IC 7.1-8-2-1.
23 (1) (2) "Certificate of analysis" means a certificate from an
24 independent testing laboratory describing the results of the
25 laboratory's testing of a sample.
26 (2) (3) "Independent testing laboratory" means a laboratory:
27 (A) with respect to which no person having a direct or indirect
28 interest in the laboratory also has a direct or indirect interest
29 in a facility that:
30 (i) processes, distributes, or sells low THC hemp extract, or
31 a substantially similar substance in another jurisdiction;
32 (ii) cultivates, processes, distributes, dispenses, or sells
33 marijuana; or
34 (iii) cultivates, processes, or distributes hemp; and
35 (B) that is accredited as a testing laboratory to International
36 Organization for Standardization (ISO) 17025 by a third party
37 accrediting body such as the American Association for
38 Laboratory Accreditation (A2LA) or Assured Calibration and
39 Laboratory Accreditation Select Services (ACLASS).
40 (3) (4) "Low THC hemp extract" has the meaning set forth in
41 IC 35-48-1-17.5.
42 SECTION 24. IC 24-4-21-1.5 IS ADDED TO THE INDIANA
2022 IN 197—LS 6959/DI 77 19
1 CODE AS A NEW SECTION TO READ AS FOLLOWS
2 [EFFECTIVE JULY 1, 2022]: Sec. 1.5. (a) The cannabis compliance
3 commission shall administer and enforce this chapter.
4 (b) The cannabis compliance commission may:
5 (1) conduct inspections, review certifications, inspect
6 packaging, and engage in other enforcement actions to ensure
7 compliance with this chapter; and
8 (2) seek injunctions and impose civil penalties to enforce this
9 chapter.
10 SECTION 25. IC 24-4-21-5, AS ADDED BY P.L.153-2018,
11 SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
12 JULY 1, 2022]: Sec. 5. (a) This section applies after June 30, 2018.
13 (b) A person who distributes low THC hemp extract in violation of
14 this chapter commits a Class B infraction. However, the offense is a
15 Class A infraction if the person has a prior unrelated judgment for a
16 violation of this chapter.
17 (c) These The penalties described in this section are in addition to
18 any:
19 (1) criminal penalties that may be imposed for unlawful
20 possession or distribution of a controlled substance; or
21 (2) civil penalties or injunctive relief imposed by or sought by
22 the cannabis compliance commission.
23 SECTION 26. IC 24-4-22-1, AS AMENDED BY P.L.10-2019,
24 SECTION 106, IS AMENDED TO READ AS FOLLOWS
25 [EFFECTIVE JULY 1, 2022]: Sec. 1. As used in this chapter:
26 (1) "low THC hemp extract" has the meaning set forth in
27 IC 35-48-1-17.5; and
28 (2) "cannabis compliance commission" means the cannabis
29 compliance commission established by IC 7.1-8-2-1.
30 SECTION 27. IC 24-4-22-4, AS ADDED BY P.L.153-2018,
31 SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
32 JULY 1, 2022]: Sec. 4. (a) This section applies after June 30, 2018.
33 (b) A person who violates section 3 of this chapter commits a Class
34 C infraction. However, the violation is a Class B infraction if the
35 person has one (1) prior unrelated judgment for a violation of section
36 3 of this chapter, and a Class A infraction if the person has two (2) or
37 more prior unrelated judgments for a violation of section 3 of this
38 chapter.
39 (c) These The penalties described in this section are in addition to
40 any:
41 (1) criminal penalties that may be imposed for unlawful
42 possession or distribution of a controlled substance; or
2022 IN 197—LS 6959/DI 77 20
1 (2) civil penalties or injunctive relief imposed by or sought by
2 the cannabis compliance commission.
3 SECTION 28. [EFFECTIVE JULY 1, 2022] (a) As used in this
4 SECTION, "cannabis compliance commission" means the cannabis
5 compliance commission established by IC 7.1-8-2-1, as added by
6 this act.
7 (b) On July 1, 2022, all powers, duties, agreements, and
8 liabilities of the state seed commissioner with respect to hemp are
9 transferred to the cannabis compliance commission, as the
10 successor agency.
11 (c) On July 1, 2022, all records and property of the state seed
12 commissioner relating to hemp, including appropriations and other
13 funds under the control or supervision of the state seed
14 commissioner that are designated for the hemp program, are
15 transferred to the cannabis compliance commission, as the
16 successor agency.
17 (d) After June 30, 2022, any amounts owed to the state seed
18 commissioner before July 1, 2022, in connection with hemp are
19 considered to be owed to the cannabis compliance commission, as
20 the successor agency.
21 (e) After June 30, 2022, a reference to the state seed
22 commissioner in a statute, rule, or other document related to hemp
23 is considered a reference to the cannabis compliance commission,
24 as the successor agency.
25 (f) Any rules adopted under IC 15-15-13 by the state seed
26 commissioner before July 1, 2022, concerning hemp are
27 considered, after June 30, 2022, rules of the cannabis compliance
28 commission.
29 (g) Proceedings relating to hemp that are pending before the
30 state seed commissioner on July 1, 2022, shall be transferred from
31 the state seed commissioner to the cannabis compliance
32 commission and treated as if initiated by the cannabis compliance
33 commission.
34 (h) A license or permit relating to hemp that is issued by the
35 state seed commissioner before July 1, 2022, shall be treated after
36 June 30, 2022, as a license or permit issued by the cannabis
37 compliance commission.
38 (i) This SECTION expires July 1, 2023.
2022 IN 197—LS 6959/DI 77