Indiana 2023 Regular Session

Indiana House Bill HB1045 Compare Versions

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

Old	New	Differences
1	1
2	2	Introduced Version
3	3	HOUSE BILL No. 1045
4	4	_____
5	5	DIGEST OF INTRODUCED BILL
6	6	Citations Affected: IC 7.1-3-18.5-9; IC 15-15-13; IC 16-42-2-2;
7	7	IC 24-4-23; IC 35-31.5-2; IC 35-46-1; IC 35-48.
8	8	Synopsis: Craft hemp flower and hemp production. Excludes craft
9	9	hemp flower from the definition of "hemp product". Removes
10	10	references to smokable hemp. Removes an exemption to a person who
11	11	knowingly or intentionally grows or handles smokable hemp without
12	12	a license from the penalty of growing or handling hemp without a
13	13	license. Repeals a law that requires that a hemp bud or a hemp flower
14	14	be sold only to a processor licensed in Indiana. Provides that a food is
15	15	not considered adulterated for containing low THC hemp extract or
16	16	craft hemp flower. Creates contaminant testing and packaging
17	17	requirements for the distribution and sale of craft hemp flower.
18	18	Establishes penalties for selling or distributing craft hemp flower in
19	19	violation of the requirements. Makes it a Class C infraction if a person
20	20	knowingly: (1) sells or distributes craft hemp flower to a person less
21	21	than 21 years of age; and (2) purchases craft hemp flower for delivery
22	22	to another person who is less than 21 years of age. Provides that a retail
23	23	establishment that sells or distributes craft hemp flower to a person less
24	24	than 21 years of age commits a Class C infraction. Makes it a Class C
25	25	infraction if a person less than 21 years of age: (1) purchases craft
26	26	hemp flower; (2) accepts craft hemp flower for personal use; or (3)
27	27	possesses craft hemp flower on his or her person. Provides that a
28	28	person who, while a motor vehicle is in operation or located on the
29	29	right-of-way of a public highway, possesses a container that contains
30	30	craft hemp flower, and: (1) the container does not have tamper evident
31	31	packaging; or (2) the tamper evident packaging has a broken seal;
32	32	commits a Class C infraction. Provides that a violation is not
33	33	considered a moving violation. Defines "craft hemp flower". Provides
34	34	(Continued next page)
35	35	Effective: July 1, 2023.
36	36	Bartels, Teshka, Lucas, Gore
37	37	January 9, 2023, read first time and referred to Committee on Agriculture and Rural
38	38	Development.
39	39	2023 IN 1045—LS 6215/DI 77 Digest Continued
40	40	that craft hemp flower is not included in the definition of "controlled
41	41	substance analog", "hashish", "low THC hemp extract", or "marijuana".
42	42	Repeals the definition of "smokable hemp" and criminal penalties
43	43	concerning smokable hemp. Makes conforming changes. Makes
44	44	technical corrections.
45	45	2023 IN 1045—LS 6215/DI 772023 IN 1045—LS 6215/DI 77 Introduced
46	46	First Regular Session of the 123rd General Assembly (2023)
47	47	PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
48	48	Constitution) is being amended, the text of the existing provision will appear in this style type,
49	49	additions will appear in this style type, and deletions will appear in this style type.
50	50	Additions: Whenever a new statutory provision is being enacted (or a new constitutional
51	51	provision adopted), the text of the new provision will appear in this style type. Also, the
52	52	word NEW will appear in that style type in the introductory clause of each SECTION that adds
53	53	a new provision to the Indiana Code or the Indiana Constitution.
54	54	Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
55	55	between statutes enacted by the 2022 Regular Session of the General Assembly.
56	56	HOUSE BILL No. 1045
57	57	A BILL FOR AN ACT to amend the Indiana Code concerning
58	58	agriculture and animals.
59	59	Be it enacted by the General Assembly of the State of Indiana:
60	60	1 SECTION 1. IC 7.1-3-18.5-9, AS AMENDED BY P.L.49-2020,
61	61	2 SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
62	62	3 JULY 1, 2023]: Sec. 9. A certificate holder shall exercise due diligence
63	63	4 in the supervision and training of the certificate holder's employees or
64	64	5 agents in the handling and sale of tobacco products and electronic
65	65	6 cigarettes on the holder's retail premises. Proof that employees or
66	66	7 agents of the certificate holder, while in the scope of their employment,
67	67	8 committed at least six (6) violations relating to IC 35-46-1-10.2(b)
68	68	9 IC 35-46-1-10.2(c) in any one (1) year period shall be prima facie
69	69	10 evidence of a lack of due diligence by the certificate holder in the
70	70	11 supervision and training of the certificate holder's employees or agents.
71	71	12 SECTION 2. IC 15-15-13-6.5, AS ADDED BY P.L.190-2019,
72	72	13 SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
73	73	14 JULY 1, 2023]: Sec. 6.5. As used in this chapter, "hemp product"
74	74	15 means a product derived from, or made by, processing hemp plants or
75	75	2023 IN 1045—LS 6215/DI 77 2
76	76	1 plant parts including derivatives, extracts, cannabinoids, isomers, acids,
77	77	2 salts, and salts of isomers. However, the term does not include
78	78	3 (1) smokable hemp (as defined by IC 35-48-1-26.6); or
79	79	4 (2) products that contain a total delta-9-tetrahydrocannabinol
80	80	5 concentration of more than three-tenths of one percent (0.3%) by
81	81	6 weight.
82	82	7 SECTION 3. IC 15-15-13-13, AS AMENDED BY P.L.190-2019,
83	83	8 SECTION 14, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
84	84	9 JULY 1, 2023]: Sec. 13. (a) Subject to section 13.5 of this chapter, in
85	85	10 addition to any other liability or penalty provided by law, the state seed
86	86	11 commissioner may revoke or refuse to issue or renew a hemp license
87	87	12 or an agricultural hemp seed production license and may impose a civil
88	88	13 penalty for a violation of:
89	89	14 (1) a license requirement;
90	90	15 (2) license terms or conditions; or
91	91	16 (3) a rule relating to growing or handling hemp. or
92	92	17 (4) section 19 of this chapter.
93	93	18 (b) The state seed commissioner may not impose a civil penalty
94	94	19 under this section that exceeds two thousand five hundred dollars
95	95	20 ($2,500).
96	96	21 (c) The state seed commissioner may revoke or refuse to issue or
97	97	22 renew a hemp license or an agricultural hemp seed production license
98	98	23 for a violation of any rule of the state seed commissioner that pertains
99	99	24 to agricultural operations or activities other than hemp growing or
100	100	25 handling.
101	101	26 (d) Any civil penalties collected under this section shall be
102	102	27 transferred to the Indiana state department of agriculture and used for
103	103	28 hemp marketing and research purposes.
104	104	29 (e) In addition to payment of any civil penalty imposed under this
105	105	30 section, a person who commits a violation described in subsection (a)
106	106	31 shall reimburse the state seed commissioner for any costs incurred by
107	107	32 the state seed commissioner for laboratory testing of material
108	108	33 pertaining to the violation.
109	109	34 SECTION 4. IC 15-15-13-19 IS REPEALED [EFFECTIVE JULY
110	110	35 1, 2023]. Sec. 19. (a) Hemp bud (as defined in IC 35-48-1-17.2) and
111	111	36 hemp flower (as defined in IC 35-48-1-17.3) may be sold only to a
112	112	37 processor licensed under this chapter.
113	113	38 (b) The state seed commissioner may impose a civil penalty under
114	114	39 section 13 of this chapter for a violation of subsection (a).
115	115	40 SECTION 5. IC 15-15-13-20, AS ADDED BY P.L.190-2019,
116	116	41 SECTION 21, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
117	117	42 JULY 1, 2023]: Sec. 20. (a) A person who knowingly or intentionally
118	118	2023 IN 1045—LS 6215/DI 77 3
119	119	1 violates:
120	120	2 (1) a term, condition, or requirement of a license issued; or
121	121	3 (2) a rule adopted;
122	122	4 under this chapter is subject to a civil penalty, determined by the state
123	123	5 seed commissioner, not to exceed ten thousand dollars ($10,000) per
124	124	6 violation. The state seed commissioner may also revoke the license of
125	125	7 a person who violates this subsection.
126	126	8 (b) A person who knowingly or intentionally:
127	127	9 (1) grows hemp;
128	128	10 (2) handles hemp; or
129	129	11 (3) sells agricultural hemp seed;
130	130	12 not including smokable hemp (as defined by IC 35-48-1-26.6), and is
131	131	13 not licensed under this chapter commits a Class A misdemeanor.
132	132	14 SECTION 6. IC 16-42-2-2 IS AMENDED TO READ AS
133	133	15 FOLLOWS [EFFECTIVE JULY 1, 2023]: Sec. 2. (a) A food is
134	134	16 considered adulterated under any of the following conditions:
135	135	17 (1) If the food bears or contains any poisonous or deleterious
136	136	18 substance that may make the food injurious to health. However,
137	137	19 if the substance is not an added substance, the food is not to be
138	138	20 considered adulterated under this subdivision if the quantity of the
139	139	21 substance in the food does not ordinarily make the food injurious
140	140	22 to health.
141	141	23 (2) If:
142	142	24 (A) the food bears or contains any added poison or added
143	143	25 deleterious substance (other than a poison or a deleterious
144	144	26 substance that is a pesticide chemical in or on a raw
145	145	27 agricultural commodity, a food additive, or a color additive)
146	146	28 that is unsafe within the meaning of section 5 of this chapter;
147	147	29 (B) the food is a raw agricultural commodity and the food
148	148	30 bears or contains a pesticide chemical that is unsafe under
149	149	31 section 5 of this chapter; or
150	150	32 (C) the food is or contains a food additive that is unsafe under
151	151	33 section 5 of this chapter.
152	152	34 However, when a pesticide chemical is used in or on a raw
153	153	35 agricultural commodity in conformity with an exemption granted
154	154	36 or tolerance prescribed under section 5 of this chapter and the raw
155	155	37 agricultural commodity has been subjected to processing such as
156	156	38 canning, cooking, freezing, dehydrating, or milling, the residue of
157	157	39 the pesticide chemical remaining in or on the processed food,
158	158	40 notwithstanding section 5 of this chapter and clause (C) is not
159	159	41 considered unsafe if the residue in or on the raw agricultural
160	160	42 commodity has been removed to the extent possible in good
161	161	2023 IN 1045—LS 6215/DI 77 4
162	162	1 manufacturing practice, and the concentration of the residues in
163	163	2 the processed food, when ready to eat, is not greater than the
164	164	3 tolerance prescribed for the raw agricultural commodity.
165	165	4 (3) If the food consists in whole or in part of a diseased,
166	166	5 contaminated, filthy, putrid, or decomposed substance or if the
167	167	6 food is otherwise unfit for food.
168	168	7 (4) If the food has been produced, transported, handled, prepared,
169	169	8 packed, or held under unsanitary conditions or in unsanitary
170	170	9 containers as the result of which the food may have become
171	171	10 contaminated with filth or made diseased, unwholesome, or
172	172	11 injurious to health.
173	173	12 (5) If the food is, in whole or in part, the product of:
174	174	13 (A) a diseased animal;
175	175	14 (B) an animal that has died otherwise than by slaughter; or
176	176	15 (C) an animal that has been fed upon the uncooked offal from
177	177	16 a slaughterhouse.
178	178	17 (6) If the food's container is composed in whole or in part of any
179	179	18 poisonous or deleterious substance that may make the contents
180	180	19 injurious to health.
181	181	20 (7) If the food has been intentionally subjected to radiation, unless
182	182	21 the use of the radiation was in conformity with a rule or an
183	183	22 exemption in effect under section 5 of this chapter.
184	184	23 (8) If any valuable constituent has been in whole or in part
185	185	24 omitted or abstracted from the food.
186	186	25 (9) If any substance has been substituted wholly or in part.
187	187	26 (10) If damage or inferiority has been concealed in any manner.
188	188	27 (11) If any substance has been added to the food or mixed or
189	189	28 packed with the food to:
190	190	29 (A) increase the food's bulk or weight;
191	191	30 (B) reduce the food's quality or strength;
192	192	31 (C) make the food appear better or of greater value than the
193	193	32 food is; or
194	194	33 (D) create a deceptive appearance.
195	195	34 (12) If the food bears or contains a coal-tar color other than one
196	196	35 from a batch that has been certified by the federal Food and Drug
197	197	36 Administrator, as provided by regulations promulgated under
198	198	37 authority of the Federal Act.
199	199	38 (13) If the food is a confectionery and has partially or completely
200	200	39 imbedded embedded in the food any nonnutritive object.
201	201	40 However, this subdivision does not apply in the case of any
202	202	41 nonnutritive object if, in the judgment of the state department as
203	203	42 provided by rules, the nonnutritive object is of practical,
204	204	2023 IN 1045—LS 6215/DI 77 5
205	205	1 functional value to the confectionery product and would not make
206	206	2 the product injurious or hazardous to health.
207	207	3 (14) If the food is a confectionery and bears or contains any
208	208	4 alcohol other than alcohol not in excess of one-half of one percent
209	209	5 (0.5%) by volume derived solely from the use of flavoring
210	210	6 extracts.
211	211	7 (15) If the food is a confectionery and bears or contains any
212	212	8 nonnutritive substance. However, this subdivision does not apply
213	213	9 to a safe, nonnutritive substance if:
214	214	10 (A) the nonnutritive substance is in or on a confectionery for
215	215	11 a practical, functional purpose in the manufacture, packaging,
216	216	12 or storing of the confectionery; and
217	217	13 (B) the use of the substance does not promote deception of the
218	218	14 consumer or otherwise result in adulteration or misbranding in
219	219	15 violation of any provision of IC 16-42-1 through IC 16-42-4.
220	220	16 In addition, the state department may, for the purpose of
221	221	17 avoiding or resolving uncertainty as to the application of this
222	222	18 subdivision, adopt rules allowing or prohibiting the use of
223	223	19 particular nonnutritive substances.
224	224	20 (16) If the food falls below the standard of purity, quality, or
225	225	21 strength that the food purports or is represented to possess.
226	226	22 (17) If the food is or bears or contains any color additive that is
227	227	23 unsafe under section 5 of this chapter.
228	228	24 (b) Subsection (a)(8) and (a)(9) do not prohibit:
229	229	25 (1) the removal of butterfat from; or
230	230	26 (2) the addition of skim milk to;
231	231	27 dairy products that comply with the definitions and standards for dairy
232	232	28 products adopted by the state department.
233	233	29 (c) A food is not considered adulterated for containing low THC
234	234	30 hemp extract (as defined in IC 35-48-1-17.5) or craft hemp flower
235	235	31 (as defined in IC 35-31.5-2-68.8).
236	236	32 SECTION 7. IC 24-4-23 IS ADDED TO THE INDIANA CODE AS
237	237	33 A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY
238	238	34 1, 2023]:
239	239	35 Chapter 23. Distribution of Craft Hemp Flower
240	240	36 Sec. 1. As used in this chapter, "certificate of analysis" means
241	241	37 a certificate from an independent testing laboratory describing the
242	242	38 results of the laboratory's testing of a sample.
243	243	39 Sec. 2. As used in this chapter, "craft hemp flower" has the
244	244	40 meaning set forth in IC 35-31.5-2-68.8.
245	245	41 Sec. 3. As used in this chapter, "independent testing laboratory"
246	246	42 means a laboratory:
247	247	2023 IN 1045—LS 6215/DI 77 6
248	248	1 (1) with respect to which no person having a direct or indirect
249	249	2 interest in the laboratory also has a direct or indirect interest
250	250	3 in a facility that:
251	251	4 (A) processes, distributes, or sells craft hemp flower, or a
252	252	5 substantially similar substance in another jurisdiction;
253	253	6 (B) cultivates, processes, distributes, dispenses, or sells
254	254	7 marijuana;
255	255	8 (C) cultivates, processes, or distributes hemp; or
256	256	9 (D) processes, distributes, or sells low THC hemp extract
257	257	10 (as defined in IC 35-48-1-17.5); and
258	258	11 (2) that is accredited as a testing laboratory under
259	259	12 International Organization for Standardization (ISO) 17025
260	260	13 by a third party accrediting body such as the American
261	261	14 Association for Laboratory Accreditation (A2LA) or Assured
262	262	15 Calibration and Laboratory Accreditation Select Services
263	263	16 (ACLASS).
264	264	17 Sec. 4. As used in this chapter, "tamper evident packaging"
265	265	18 means a package having at least one (1) indicator or a barrier to
266	266	19 entry that, if breached or missing, can reasonably be expected to
267	267	20 provide visible evidence to consumers that tampering has occurred.
268	268	21 Sec. 5. (a) Before a person may distribute craft hemp flower, the
269	269	22 distributor must have a certificate of analysis prepared by an
270	270	23 independent testing laboratory showing the following:
271	271	24 (1) That the craft hemp flower is the product of a batch tested
272	272	25 by the independent testing laboratory.
273	273	26 (2) That the independent testing laboratory determined that
274	274	27 the batch contained not more than three-tenths percent
275	275	28 (0.3%) delta-9-tetrahydrocannabinol (THC), including
276	276	29 precursors, by weight, based on the testing of a random
277	277	30 sample of the batch.
278	278	31 (3) That the batch has been tested for and does not exceed the
279	279	32 acceptable levels set forth under section 7 of this chapter for
280	280	33 the following contaminants:
281	281	34 (A) Heavy metals, including cadmium, lead, arsenic, and
282	282	35 mercury.
283	283	36 (B) Pesticides.
284	284	37 (C) Herbicides.
285	285	38 (D) Mycotoxins.
286	286	39 (E) Bacterial toxins.
287	287	40 (F) Chemical solvent residues.
288	288	41 (4) The potency of the craft hemp flower, including the
289	289	42 projected percentage of:
290	290	2023 IN 1045—LS 6215/DI 77 7
291	291	1 (A) THC;
292	292	2 (B) cannabidiol; and
293	293	3 (C) other cannabinoids in the craft hemp flower;
294	294	4 by weight or volume.
295	295	5 (b) Each batch of craft hemp flower submitted to an
296	296	6 independent testing laboratory under this section must have been
297	297	7 harvested at the same time and cultivated in a contiguous area in
298	298	8 the same field or facility.
299	299	9 Sec. 6. Craft hemp flower must be distributed in tamper evident
300	300	10 packaging that contains the following information:
301	301	11 (1) A scannable bar code or QR code linked to a document
302	302	12 that contains information with respect to the craft hemp
303	303	13 flower, including the:
304	304	14 (A) batch identification number;
305	305	15 (B) product name;
306	306	16 (C) batch date;
307	307	17 (D) expiration date, which must be not more than two (2)
308	308	18 years from the date of harvest;
309	309	19 (E) batch size;
310	310	20 (F) total quantity produced;
311	311	21 (G) ingredients used, including the:
312	312	22 (i) ingredient name;
313	313	23 (ii) name of the company that manufactured the
314	314	24 ingredient;
315	315	25 (iii) company or product identification number or code,
316	316	26 if applicable; and
317	317	27 (iv) ingredient lot number; and
318	318	28 (H) download link for a certificate of analysis for the craft
319	319	29 hemp flower.
320	320	30 (2) The batch number.
321	321	31 (3) The website address to obtain batch information.
322	322	32 (4) The expiration date, which must be not more than two (2)
323	323	33 years from the date of harvest.
324	324	34 (5) The number of grams of craft hemp flower.
325	325	35 (6) The facility that produced the craft hemp flower.
326	326	36 (7) The fact that the product contains not more than
327	327	37 three-tenths percent (0.3%) delta-9-tetrahydrocannabinol
328	328	38 (THC), including precursors, by weight.
329	329	39 Sec. 7. A craft hemp flower may not be distributed if a
330	330	40 certificate of analysis prepared by an independent testing
331	331	41 laboratory shows any of the following:
332	332	42 (1) A concentration of metals that is more than any of the
333	333	2023 IN 1045—LS 6215/DI 77 8
334	334	1 following:
335	335	2 (A) Four-tenths (0.4) part per million of cadmium.
336	336	3 (B) Five-tenths (0.5) part per million of lead.
337	337	4 (C) Four-tenths (0.4) part per million of arsenic.
338	338	5 (D) Two-tenths (0.2) part per million of mercury.
339	339	6 (2) A concentration of microbiological units that is more than
340	340	7 any of the following:
341	341	8 (A) One (1) colony forming unit per gram of Shiga-Toxin
342	342	9 Escherichia coli.
343	343	10 (B) One (1) colony forming unit per gram of Salmonella
344	344	11 spp.
345	345	12 (C) Ten thousand (10,000) colony forming units of
346	346	13 culturable mold.
347	347	14 (3) A concentration of residual solvents and chemicals that is
348	348	15 more than any of the following:
349	349	16 (A) Five thousand (5,000) parts per million of butane.
350	350	17 (B) Two (2) parts per million of benzene.
351	351	18 (C) Five thousand (5,000) parts per million of heptane.
352	352	19 (D) Two hundred ninety (290) parts per million of hexane.
353	353	20 (E) Eight hundred ninety (890) parts per million of toluene.
354	354	21 (F) One (1) part per million of total xylenes, including
355	355	22 ortho-xylene, meta-xylene, and para-xylene.
356	356	23 Sec. 8. (a) A person in a motor vehicle who, while the motor
357	357	24 vehicle is in operation or the motor vehicle is located on the
358	358	25 right-of-way of a public highway (as defined in IC 9-25-2-4),
359	359	26 possesses a container that contains craft hemp flower, and:
360	360	27 (1) the container does not have tamper evident packaging; or
361	361	28 (2) the tamper evident packaging has a broken seal;
362	362	29 commits a Class C infraction.
363	363	30 (b) A violation of this section is not considered a moving traffic
364	364	31 violation:
365	365	32 (1) for purposes of IC 9-14-12-3; and
366	366	33 (2) for which points are assessed by the bureau of motor
367	367	34 vehicles under the point system.
368	368	35 Sec. 9. (a) A person who distributes or sells craft hemp flower
369	369	36 in violation of this chapter commits a Class B infraction. However,
370	370	37 the offense is a Class A infraction if the person has a prior
371	371	38 unrelated judgment for a violation of this chapter.
372	372	39 (b) The penalties in this section are in addition to any criminal
373	373	40 penalties that may be imposed for unlawful possession or
374	374	41 distribution of a controlled substance.
375	375	42 SECTION 8. IC 35-31.5-2-68.8 IS ADDED TO THE INDIANA
376	376	2023 IN 1045—LS 6215/DI 77 9
377	377	1 CODE AS A NEW SECTION TO READ AS FOLLOWS
378	378	2 [EFFECTIVE JULY 1, 2023]: Sec. 68.8. (a) "Craft hemp flower"
379	379	3 means the harvested reproductive organ, whether immature or
380	380	4 mature, of the female Cannabis sativa L. plant containing not more
381	381	5 than three-tenths percent (0.3%) delta-9-tetrahydrocannabinol
382	382	6 (THC), including precursors of THC, in a form that is intended to
383	383	7 allow THC to be introduced into the human body by inhalation of
384	384	8 smoke.
385	385	9 (b) The term does not include agricultural hemp seed (as defined
386	386	10 in IC 15-15-13-2).
387	387	11 SECTION 9. IC 35-31.5-2-100, AS AMENDED BY P.L.49-2020,
388	388	12 SECTION 25, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
389	389	13 JULY 1, 2023]: Sec. 100. (a) "Distribute", for purposes of
390	390	14 IC 35-45-4-8, has the meaning set forth in IC 35-45-4-8.
391	391	15 (b) "Distribute", for purposes of IC 35-46-1-10, has the meaning set
392	392	16 forth in IC 35-46-1-10(f). IC 35-46-1-10(a).
393	393	17 (c) "Distribute", for purposes of IC 35-46-1-10.2, has the meaning
394	394	18 set forth in IC 35-46-1-10.2(g). IC 35-46-1-10.2(a).
395	395	19 (d) "Distribute", for purposes of IC 35-47.5, has the meaning set
396	396	20 forth in IC 35-47.5-2-6.
397	397	21 (e) "Distribute", for purposes of IC 35-48, has the meaning set forth
398	398	22 in IC 35-48-1-14.
399	399	23 (f) "Distribute", for purposes of IC 35-49, has the meaning set forth
400	400	24 in IC 35-49-1-2.
401	401	25 SECTION 10. IC 35-46-1-10, AS AMENDED BY P.L.32-2021,
402	402	26 SECTION 97, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
403	403	27 JULY 1, 2023]: Sec. 10. (a) As used in this section, "distribute"
404	404	28 means to give tobacco, craft hemp flower, an e-liquid, or an
405	405	29 electronic cigarette to another person as a means of promoting,
406	406	30 advertising, or marketing the tobacco, craft hemp flower, e-liquid,
407	407	31 or electronic cigarette to the general public.
408	408	32 (a) (b) A person may not be charged with a violation under this
409	409	33 section and a violation under IC 7.1-7-6-5.
410	410	34 (b) (c) A person who knowingly:
411	411	35 (1) sells or distributes tobacco, craft hemp flower, an e-liquid, or
412	412	36 an electronic cigarette to a person less than twenty-one (21) years
413	413	37 of age; or
414	414	38 (2) purchases tobacco, craft hemp flower, an e-liquid, or an
415	415	39 electronic cigarette for delivery to another person who is less than
416	416	40 twenty-one (21) years of age;
417	417	41 commits a Class C infraction. For a sale to take place under this
418	418	42 section, the buyer must pay the seller for the tobacco, craft hemp
419	419	2023 IN 1045—LS 6215/DI 77 10
420	420	1 flower, e-liquid, or electronic cigarette.
421	421	2 (c) (d) It is not a defense that the person to whom the tobacco, craft
422	422	3 hemp flower, e-liquid, or electronic cigarette was sold or distributed
423	423	4 did not smoke, chew, inhale, or otherwise consume the tobacco, craft
424	424	5 hemp flower, e-liquid, or electronic cigarette.
425	425	6 (d) (e) The following defenses are available to a person accused of
426	426	7 selling or distributing tobacco, craft hemp flower, an e-liquid, or an
427	427	8 electronic cigarette to a person who is less than twenty-one (21) years
428	428	9 of age:
429	429	10 (1) The buyer or recipient produced a driver's license bearing the
430	430	11 purchaser's or recipient's photograph, showing that the purchaser
431	431	12 or recipient was of legal age to make the purchase.
432	432	13 (2) The buyer or recipient produced a photographic identification
433	433	14 card issued under IC 9-24-16-1, or a similar card issued under the
434	434	15 laws of another state or the federal government, showing that the
435	435	16 purchaser or recipient was of legal age to make the purchase.
436	436	17 (3) The appearance of the purchaser or recipient was such that an
437	437	18 ordinary prudent person would believe that the purchaser or
438	438	19 recipient was not less than thirty (30) years of age.
439	439	20 (e) (f) It is a defense that the accused person sold or delivered the
440	440	21 tobacco, craft hemp flower, e-liquid, or electronic cigarette to a
441	441	22 person who acted in the ordinary course of employment or a business
442	442	23 concerning tobacco, craft hemp flower, an e-liquid, or electronic
443	443	24 cigarettes including the following activities:
444	444	25 (1) Agriculture.
445	445	26 (2) Processing.
446	446	27 (3) Transporting.
447	447	28 (4) Wholesaling.
448	448	29 (5) Retailing.
449	449	30 (f) As used in this section, "distribute" means to give tobacco, an
450	450	31 e-liquid, or an electronic cigarette to another person as a means of
451	451	32 promoting, advertising, or marketing the tobacco, e-liquid, or electronic
452	452	33 cigarette to the general public.
453	453	34 (g) Unless the person buys or receives tobacco, craft hemp flower,
454	454	35 an e-liquid, or an electronic cigarette under the direction of a law
455	455	36 enforcement officer as part of an enforcement action, a person who
456	456	37 sells or distributes tobacco, craft hemp flower, an e-liquid, or an
457	457	38 electronic cigarette is not liable for a violation of this section unless the
458	458	39 person less than twenty-one (21) years of age who bought or received
459	459	40 the tobacco, craft hemp flower, e-liquid, or electronic cigarette is
460	460	41 issued a citation or summons under section 10.5 of this chapter.
461	461	42 (h) Notwithstanding IC 34-28-5-5(c), civil penalties collected under
462	462	2023 IN 1045—LS 6215/DI 77 11
463	463	1 this section must be deposited in the Richard D. Doyle youth tobacco
464	464	2 education and enforcement fund (IC 7.1-6-2-6).
465	465	3 SECTION 11. IC 35-46-1-10.2, AS AMENDED BY P.L.32-2021,
466	466	4 SECTION 98, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
467	467	5 JULY 1, 2023]: Sec. 10.2. (a) As used in this section, "distribute"
468	468	6 means to give tobacco, craft hemp flower, an e-liquid, or an
469	469	7 electronic cigarette to another person as a means of promoting,
470	470	8 advertising, or marketing the tobacco, craft hemp flower, e-liquid,
471	471	9 or electronic cigarette to the general public.
472	472	10 (a) (b) A person may not be charged with a violation under this
473	473	11 section and a violation under IC 7.1-7-6-5.
474	474	12 (b) (c) A retail establishment that sells or distributes tobacco, craft
475	475	13 hemp flower, an e-liquid, or an electronic cigarette to a person less
476	476	14 than twenty-one (21) years of age commits a Class C infraction. For a
477	477	15 sale to take place under this section, the buyer must pay the retail
478	478	16 establishment for the tobacco, craft hemp flower, e-liquid, or
479	479	17 electronic cigarette.
480	480	18 (c) (d) Notwithstanding IC 34-28-5-4(c), a civil judgment for an
481	481	19 infraction committed under this section must be imposed as follows:
482	482	20 (1) If the retail establishment at that specific business location has
483	483	21 not been issued a citation or summons for a violation of this
484	484	22 section in the previous one (1) year, a civil penalty of up to four
485	485	23 hundred dollars ($400).
486	486	24 (2) If the retail establishment at that specific business location has
487	487	25 had one (1) citation or summons issued for a violation of this
488	488	26 section in the previous one (1) year, a civil penalty of up to eight
489	489	27 hundred dollars ($800).
490	490	28 (3) If the retail establishment at that specific business location has
491	491	29 had two (2) citations or summonses issued for a violation of this
492	492	30 section in the previous one (1) year, a civil penalty of up to one
493	493	31 thousand four hundred dollars ($1,400).
494	494	32 (4) If the retail establishment at that specific business location has
495	495	33 had three (3) or more citations or summonses issued for a
496	496	34 violation of this section in the previous one (1) year, a civil
497	497	35 penalty of up to two thousand dollars ($2,000).
498	498	36 A retail establishment may not be issued a citation or summons for a
499	499	37 violation of this section more than once every twenty-four (24) hours
500	500	38 for each specific business location.
501	501	39 (d) (e) It is not a defense that the person to whom the tobacco, craft
502	502	40 hemp flower, e-liquid, or electronic cigarette was sold or distributed
503	503	41 did not smoke, chew, inhale, or otherwise consume the tobacco, craft
504	504	42 hemp flower, e-liquid, or electronic cigarette.
505	505	2023 IN 1045—LS 6215/DI 77 12
506	506	1 (e) (f) The following defenses are available to a retail establishment
507	507	2 accused of selling or distributing tobacco, craft hemp flower, an
508	508	3 e-liquid, or an electronic cigarette to a person who is less than
509	509	4 twenty-one (21) years of age:
510	510	5 (1) The buyer or recipient produced a driver's license bearing the
511	511	6 purchaser's or recipient's photograph showing that the purchaser
512	512	7 or recipient was of legal age to make the purchase.
513	513	8 (2) The buyer or recipient produced a photographic identification
514	514	9 card issued under IC 9-24-16-1 or a similar card issued under the
515	515	10 laws of another state or the federal government showing that the
516	516	11 purchaser or recipient was of legal age to make the purchase.
517	517	12 (3) The appearance of the purchaser or recipient was such that an
518	518	13 ordinary prudent person would believe that the purchaser or
519	519	14 recipient was not less than thirty (30) years of age.
520	520	15 (f) (g) It is a defense that the accused retail establishment sold or
521	521	16 delivered the tobacco, craft hemp flower, e-liquid, or electronic
522	522	17 cigarette to a person who acted in the ordinary course of employment
523	523	18 or a business concerning tobacco, craft hemp flower, an e-liquid, or
524	524	19 electronic cigarettes for the following activities:
525	525	20 (1) Agriculture.
526	526	21 (2) Processing.
527	527	22 (3) Transporting.
528	528	23 (4) Wholesaling.
529	529	24 (5) Retailing.
530	530	25 (g) As used in this section, "distribute" means to give tobacco, an
531	531	26 e-liquid, or an electronic cigarette to another person as a means of
532	532	27 promoting, advertising, or marketing the tobacco or electronic cigarette
533	533	28 to the general public.
534	534	29 (h) Unless a person buys or receives tobacco, craft hemp flower,
535	535	30 an e-liquid, or an electronic cigarette under the direction of a law
536	536	31 enforcement officer as part of an enforcement action, a retail
537	537	32 establishment that sells or distributes tobacco, craft hemp flower, an
538	538	33 e-liquid, or an electronic cigarette is not liable for a violation of this
539	539	34 section unless the person less than twenty-one (21) years of age who
540	540	35 bought or received the tobacco, craft hemp flower, e-liquid, or
541	541	36 electronic cigarette is issued a citation or summons under section 10.5
542	542	37 of this chapter.
543	543	38 (i) Notwithstanding IC 34-28-5-5(c), civil penalties collected under
544	544	39 this section must be deposited in the Richard D. Doyle youth tobacco
545	545	40 education and enforcement fund (IC 7.1-6-2-6).
546	546	41 (j) A person who violates subsection (b) (c) at least six (6) times in
547	547	42 any one (1) year commits habitual illegal sale of tobacco, sales, a Class
548	548	2023 IN 1045—LS 6215/DI 77 13
549	549	1 B infraction.
550	550	2 SECTION 12. IC 35-46-1-10.5, AS AMENDED BY P.L.49-2020,
551	551	3 SECTION 32, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
552	552	4 JULY 1, 2023]: Sec. 10.5. (a) A person less than twenty-one (21) years
553	553	5 of age who:
554	554	6 (1) purchases tobacco, craft hemp flower, an e-liquid, or an
555	555	7 electronic cigarette;
556	556	8 (2) accepts tobacco, craft hemp flower, an e-liquid, or an
557	557	9 electronic cigarette for personal use; or
558	558	10 (3) possesses tobacco, craft hemp flower, an e-liquid, or an
559	559	11 electronic cigarette on the person's person;
560	560	12 commits a Class C infraction.
561	561	13 (b) It is a defense under subsection (a) that the accused person acted
562	562	14 in the ordinary course of employment in a business concerning tobacco,
563	563	15 craft hemp flower, an e-liquid, or an electronic cigarette for the
564	564	16 following activities:
565	565	17 (1) Agriculture.
566	566	18 (2) Processing.
567	567	19 (3) Transporting.
568	568	20 (4) Wholesaling.
569	569	21 (5) Retailing.
570	570	22 SECTION 13. IC 35-48-1-9.3, AS AMENDED BY P.L.80-2019,
571	571	23 SECTION 18, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
572	572	24 JULY 1, 2023]: Sec. 9.3. (a) "Controlled substance analog" means a
573	573	25 substance that, due to its chemical structure and potential for abuse or
574	574	26 misuse, meets the following criteria:
575	575	27 (1) The substance is substantially similar to a controlled substance
576	576	28 classified under IC 35-48-2.
577	577	29 (2) The substance has a narcotic, stimulant, depressant, or
578	578	30 hallucinogenic effect on the central nervous system or is
579	579	31 represented or intended to have a narcotic, stimulant, depressant,
580	580	32 or hallucinogenic effect on the central nervous system
581	581	33 substantially similar to or greater than that of a controlled
582	582	34 substance classified under IC 35-48-2.
583	583	35 (b) The definition set forth in subsection (a) does not include:
584	584	36 (1) a controlled substance;
585	585	37 (2) a legend drug;
586	586	38 (3) a substance for which there is an approved new drug
587	587	39 application;
588	588	40 (4) any compound, mixture, or preparation that contains any
589	589	41 controlled substance, that is not for administration to a human
590	590	42 being or an animal, and that is packaged in a form or
591	591	2023 IN 1045—LS 6215/DI 77 14
592	592	1 concentration, or with adulterants or denaturants, such that as
593	593	2 packaged it does not present any significant potential for abuse;
594	594	3 or
595	595	4 (5) a substance to which an investigational exemption applies
596	596	5 under Section 505 of the federal Food, Drug and Cosmetic Act
597	597	6 (chapter 675, 52 Stat. 1052 (21 U.S.C. 355)), but only to the
598	598	7 extent that conduct with respect to the substance is pursuant to the
599	599	8 exemption; or
600	600	9 (6) low THC hemp extract; or
601	601	10 (7) craft hemp flower.
602	602	11 (c) For purposes of subsection (a), "substantially similar", as it
603	603	12 applies to the chemical structure of a substance, means that the
604	604	13 chemical structure of the substance, when compared to the structure of
605	605	14 a controlled substance, has a single difference in the structural formula
606	606	15 that substitutes one (1) atom or functional group for another, including:
607	607	16 (1) one (1) halogen for another halogen;
608	608	17 (2) one (1) hydrogen for a halogen;
609	609	18 (3) one (1) halogen for a hydrogen; or
610	610	19 (4) an alkyl group added or deleted:
611	611	20 (A) as a side chain to or from a molecule; or
612	612	21 (B) from a side chain of a molecule.
613	613	22 SECTION 14. IC 35-48-1-10.5 IS ADDED TO THE INDIANA
614	614	23 CODE AS A NEW SECTION TO READ AS FOLLOWS
615	615	24 [EFFECTIVE JULY 1, 2023]: Sec. 10.5. "Craft hemp flower" has
616	616	25 the meaning set forth in IC 35-31.5-2-68.8.
617	617	26 SECTION 15. IC 35-48-1-16.8, AS ADDED BY P.L.153-2018,
618	618	27 SECTION 19, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
619	619	28 JULY 1, 2023]: Sec. 16.8. "Hashish" does not include:
620	620	29 (1) low THC hemp extract; or
621	621	30 (2) craft hemp flower.
622	622	31 SECTION 16. IC 35-48-1-17.2 IS REPEALED [EFFECTIVE JULY
623	623	32 1, 2023]. Sec. 17.2. (a) "Hemp bud" means the harvested immature
624	624	33 reproductive organ of the female hemp plant.
625	625	34 (b) The term does not include agricultural hemp seed.
626	626	35 SECTION 17. IC 35-48-1-17.3 IS REPEALED [EFFECTIVE JULY
627	627	36 1, 2023]. Sec. 17.3. (a) "Hemp flower" means the harvested
628	628	37 reproductive organ, whether immature or mature, of the female hemp
629	629	38 plant.
630	630	39 (b) The term does not include agricultural hemp seed.
631	631	40 SECTION 18. IC 35-48-1-17.5, AS AMENDED BY P.L.190-2019,
632	632	41 SECTION 28, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
633	633	42 JULY 1, 2023]: Sec. 17.5. (a) "Low THC hemp extract" means a
634	634	2023 IN 1045—LS 6215/DI 77 15
635	635	1 substance or compound that:
636	636	2 (1) is derived from or contains any part of the plant Cannabis
637	637	3 sativa L. that meets the definition of hemp under IC 15-15-13-6;
638	638	4 (2) contains not more than three-tenths percent (0.3%) total
639	639	5 delta-9-tetrahydrocannabinol (THC), including precursors, by
640	640	6 weight; and
641	641	7 (3) contains no other controlled substances.
642	642	8 (b) The term does not include:
643	643	9 (1) the harvested reproductive organ, whether immature or
644	644	10 mature, of the female hemp plant; or
645	645	11 (2) smokable hemp. craft hemp flower.
646	646	12 SECTION 19. IC 35-48-1-19, AS AMENDED BY P.L.190-2019,
647	647	13 SECTION 29, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
648	648	14 JULY 1, 2023]: Sec. 19. (a) "Marijuana" means any part of the plant
649	649	15 genus Cannabis whether growing or not; the seeds thereof; the resin
650	650	16 extracted from any part of the plant, including hashish and hash oil; any
651	651	17 compound, manufacture, salt, derivative, mixture, or preparation of the
652	652	18 plant, its seeds or resin.
653	653	19 (b) The term does not include:
654	654	20 (1) the mature stalks of the plant;
655	655	21 (2) fiber produced from the stalks;
656	656	22 (3) oil or cake made from the seeds of the plant;
657	657	23 (4) any other compound, manufacture, salt, derivative, mixture,
658	658	24 or preparation of the mature stalks (except the resin extracted
659	659	25 therefrom);
660	660	26 (5) the sterilized seed of the plant which is incapable of
661	661	27 germination;
662	662	28 (6) hemp (as defined by IC 15-15-13-6);
663	663	29 (7) low THC hemp extract; or
664	664	30 (8) smokable hemp. craft hemp flower.
665	665	31 SECTION 20. IC 35-48-1-26.6 IS REPEALED [EFFECTIVE JULY
666	666	32 1, 2023]. Sec. 26.6. (a) Except as provided in subsection (b), "smokable
667	667	33 hemp" means a product containing not more than three-tenths percent
668	668	34 (0.3%) delta-9-tetrahydrocannabinol (THC), including precursors and
669	669	35 derivatives of THC, in a form that allows THC to be introduced into the
670	670	36 human body by inhalation of smoke. The term includes:
671	671	37 (1) hemp bud; and
672	672	38 (2) hemp flower.
673	673	39 (b) The term does not include:
674	674	40 (1) a hemp plant that is; or
675	675	41 (2) parts of a hemp plant that are;
676	676	42 grown or handled by a licensee for processing or manufacturing into a
677	677	2023 IN 1045—LS 6215/DI 77 16
678	678	1 legal hemp product.
679	679	2 SECTION 21. IC 35-48-4-10.1 IS REPEALED [EFFECTIVE JULY
680	680	3 1, 2023]. Sec. 10.1. (a) A person who:
681	681	4 (1) knowingly or intentionally:
682	682	5 (A) manufactures;
683	683	6 (B) finances the manufacture of;
684	684	7 (C) delivers;
685	685	8 (D) finances the delivery of; or
686	686	9 (E) possesses;
687	687	10 smokable hemp; or
688	688	11 (2) possesses smokable hemp with intent to:
689	689	12 (A) manufacture;
690	690	13 (B) finance the manufacture of;
691	691	14 (C) deliver; or
692	692	15 (D) finance the delivery of;
693	693	16 smokable hemp;
694	694	17 commits dealing in smokable hemp, a Class A misdemeanor.
695	695	18 (b) Subsection (a)(1)(B), (a)(1)(D), (a)(2)(B), and (a)(2)(D) do not
696	696	19 apply to:
697	697	20 (1) a financial institution organized or reorganized under the laws
698	698	21 of Indiana, any other state, or the United States; or
699	699	22 (2) any agency or instrumentality of the state or the United States.
700	700	23 (c) Subsection (a)(1)(C), (a)(1)(D), (a)(1)(E), (a)(2)(C), and
701	701	24 (a)(2)(D) do not apply to the shipment of smokable hemp from a
702	702	25 licensed producer in another state in continuous transit through Indiana
703	703	26 to a licensed handler in any state.
704	704	27 SECTION 22. IC 35-48-4-12, AS AMENDED BY P.L.156-2020,
705	705	28 SECTION 134, IS AMENDED TO READ AS FOLLOWS
706	706	29 [EFFECTIVE JULY 1, 2023]: Sec. 12. If a person who has no prior
707	707	30 conviction of an offense under this article relating to controlled
708	708	31 substances pleads guilty to possession of marijuana, hashish, or salvia
709	709	32 or smokable hemp as a misdemeanor, the court, without entering a
710	710	33 judgment of conviction and with the consent of the person, may defer
711	711	34 further proceedings and place the person in the custody of the court
712	712	35 under conditions determined by the court. Upon violation of a
713	713	36 condition of the custody, the court may enter a judgment of conviction.
714	714	37 However, if the person fulfills the conditions of the custody, the court
715	715	38 shall dismiss the charges against the person. There may be only one (1)
716	716	39 dismissal under this section with respect to a person.
717	717	2023 IN 1045—LS 6215/DI 77