Indiana 2023 Regular Session

Indiana House Bill HB1045 Latest Draft

Bill / Introduced Version Filed 01/09/2023

                             
Introduced Version
HOUSE BILL No. 1045
_____
DIGEST OF INTRODUCED BILL
Citations Affected:  IC 7.1-3-18.5-9; IC 15-15-13; IC 16-42-2-2;
IC 24-4-23; IC 35-31.5-2; IC 35-46-1; IC 35-48.
Synopsis:  Craft hemp flower and hemp production. Excludes craft
hemp flower from the definition of "hemp product". Removes
references to smokable hemp. Removes an exemption to a person who
knowingly or intentionally grows or handles smokable hemp without
a license from the penalty of growing or handling hemp without a
license. Repeals a law that requires that a hemp bud or a hemp flower
be sold only to a processor licensed in Indiana. Provides that a food is
not considered adulterated for containing low THC hemp extract or
craft hemp flower. Creates contaminant testing and packaging
requirements for the distribution and sale of craft hemp flower.
Establishes penalties for selling or distributing craft hemp flower in
violation of the requirements. Makes it a Class C infraction if a person
knowingly: (1) sells or distributes craft hemp flower to a person less
than 21 years of age; and (2) purchases craft hemp flower for delivery
to another person who is less than 21 years of age. Provides that a retail
establishment that sells or distributes craft hemp flower to a person less
than 21 years of age commits a Class C infraction. Makes it a Class C
infraction if a person less than 21 years of age: (1) purchases craft
hemp flower; (2) accepts craft hemp flower for personal use; or (3)
possesses craft hemp flower on his or her person. Provides that a
person who, while a motor vehicle is in operation or located on the
right-of-way of a public highway, possesses a container that contains
craft hemp flower, and: (1) the container does not have tamper evident
packaging; or (2) the tamper evident packaging has a broken seal;
commits a Class C infraction. Provides that a violation is not
considered a moving violation. Defines "craft hemp flower". Provides
(Continued next page)
Effective:  July 1, 2023.
Bartels, Teshka, Lucas, Gore
January 9, 2023, read first time and referred to Committee on Agriculture and Rural
Development.
2023	IN 1045—LS 6215/DI 77 Digest Continued
that craft hemp flower is not included in the definition of "controlled
substance analog", "hashish", "low THC hemp extract", or "marijuana".
Repeals the definition of "smokable hemp" and criminal penalties
concerning smokable hemp. Makes conforming changes. Makes
technical corrections. 
2023	IN 1045—LS 6215/DI 772023	IN 1045—LS 6215/DI 77 Introduced
First Regular Session of the 123rd General Assembly (2023)
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 2022 Regular Session of the General Assembly.
HOUSE BILL No. 1045
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 7.1-3-18.5-9, AS AMENDED BY P.L.49-2020,
2 SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3 JULY 1, 2023]: Sec. 9. A certificate holder shall exercise due diligence
4 in the supervision and training of the certificate holder's employees or
5 agents in the handling and sale of tobacco products and electronic
6 cigarettes on the holder's retail premises. Proof that employees or
7 agents of the certificate holder, while in the scope of their employment,
8 committed at least six (6) violations relating to IC 35-46-1-10.2(b)
9 IC 35-46-1-10.2(c) in any one (1) year period shall be prima facie
10 evidence of a lack of due diligence by the certificate holder in the
11 supervision and training of the certificate holder's employees or agents.
12 SECTION 2. IC 15-15-13-6.5, AS ADDED BY P.L.190-2019,
13 SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
14 JULY 1, 2023]: Sec. 6.5. As used in this chapter, "hemp product"
15 means a product derived from, or made by, processing hemp plants or
2023	IN 1045—LS 6215/DI 77 2
1 plant parts including derivatives, extracts, cannabinoids, isomers, acids,
2 salts, and salts of isomers. However, the term does not include
3 (1) smokable hemp (as defined by IC 35-48-1-26.6); or
4 (2) products that contain a total delta-9-tetrahydrocannabinol
5 concentration of more than three-tenths of one percent (0.3%) by
6 weight.
7 SECTION 3. IC 15-15-13-13, AS AMENDED BY P.L.190-2019,
8 SECTION 14, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
9 JULY 1, 2023]: Sec. 13. (a) Subject to section 13.5 of this chapter, in
10 addition to any other liability or penalty provided by law, the state seed
11 commissioner may revoke or refuse to issue or renew a hemp license
12 or an agricultural hemp seed production license and may impose a civil
13 penalty for a violation of:
14 (1) a license requirement;
15 (2) license terms or conditions; or
16 (3) a rule relating to growing or handling hemp. or
17 (4) section 19 of this chapter.
18 (b) The state seed commissioner may not impose a civil penalty
19 under this section that exceeds two thousand five hundred dollars
20 ($2,500).
21 (c) The state seed commissioner may revoke or refuse to issue or
22 renew a hemp license or an agricultural hemp seed production license
23 for a violation of any rule of the state seed commissioner that pertains
24 to agricultural operations or activities other than hemp growing or
25 handling.
26 (d) Any civil penalties collected under this section shall be
27 transferred to the Indiana state department of agriculture and used for
28 hemp marketing and research purposes.
29 (e) In addition to payment of any civil penalty imposed under this
30 section, a person who commits a violation described in subsection (a)
31 shall reimburse the state seed commissioner for any costs incurred by
32 the state seed commissioner for laboratory testing of material
33 pertaining to the violation.
34 SECTION 4. IC 15-15-13-19 IS REPEALED [EFFECTIVE JULY
35 1, 2023]. Sec. 19. (a) Hemp bud (as defined in IC 35-48-1-17.2) and
36 hemp flower (as defined in IC 35-48-1-17.3) may be sold only to a
37 processor licensed under this chapter.
38 (b) The state seed commissioner may impose a civil penalty under
39 section 13 of this chapter for a violation of subsection (a).
40 SECTION 5. IC 15-15-13-20, AS ADDED BY P.L.190-2019,
41 SECTION 21, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
42 JULY 1, 2023]: Sec. 20. (a) A person who knowingly or intentionally
2023	IN 1045—LS 6215/DI 77 3
1 violates:
2 (1) a term, condition, or requirement of a license issued; or
3 (2) a rule adopted;
4 under this chapter is subject to a civil penalty, determined by the state
5 seed commissioner, not to exceed ten thousand dollars ($10,000) per
6 violation. The state seed commissioner may also revoke the license of
7 a person who violates this subsection.
8 (b) A person who knowingly or intentionally:
9 (1) grows hemp;
10 (2) handles hemp; or
11 (3) sells agricultural hemp seed;
12 not including smokable hemp (as defined by IC 35-48-1-26.6), and is
13 not licensed under this chapter commits a Class A misdemeanor.
14 SECTION 6. IC 16-42-2-2 IS AMENDED TO READ AS
15 FOLLOWS [EFFECTIVE JULY 1, 2023]: Sec. 2. (a) A food is
16 considered adulterated under any of the following conditions:
17 (1) If the food bears or contains any poisonous or deleterious
18 substance that may make the food injurious to health. However,
19 if the substance is not an added substance, the food is not to be
20 considered adulterated under this subdivision if the quantity of the
21 substance in the food does not ordinarily make the food injurious
22 to health.
23 (2) If:
24 (A) the food bears or contains any added poison or added
25 deleterious substance (other than a poison or a deleterious
26 substance that is a pesticide chemical in or on a raw
27 agricultural commodity, a food additive, or a color additive)
28 that is unsafe within the meaning of section 5 of this chapter;
29 (B) the food is a raw agricultural commodity and the food
30 bears or contains a pesticide chemical that is unsafe under
31 section 5 of this chapter; or
32 (C) the food is or contains a food additive that is unsafe under
33 section 5 of this chapter.
34 However, when a pesticide chemical is used in or on a raw
35 agricultural commodity in conformity with an exemption granted
36 or tolerance prescribed under section 5 of this chapter and the raw
37 agricultural commodity has been subjected to processing such as
38 canning, cooking, freezing, dehydrating, or milling, the residue of
39 the pesticide chemical remaining in or on the processed food,
40 notwithstanding section 5 of this chapter and clause (C) is not
41 considered unsafe if the residue in or on the raw agricultural
42 commodity has been removed to the extent possible in good
2023	IN 1045—LS 6215/DI 77 4
1 manufacturing practice, and the concentration of the residues in
2 the processed food, when ready to eat, is not greater than the
3 tolerance prescribed for the raw agricultural commodity.
4 (3) If the food consists in whole or in part of a diseased,
5 contaminated, filthy, putrid, or decomposed substance or if the
6 food is otherwise unfit for food.
7 (4) If the food has been produced, transported, handled, prepared,
8 packed, or held under unsanitary conditions or in unsanitary
9 containers as the result of which the food may have become
10 contaminated with filth or made diseased, unwholesome, or
11 injurious to health.
12 (5) If the food is, in whole or in part, the product of:
13 (A) a diseased animal;
14 (B) an animal that has died otherwise than by slaughter; or
15 (C) an animal that has been fed upon the uncooked offal from
16 a slaughterhouse.
17 (6) If the food's container is composed in whole or in part of any
18 poisonous or deleterious substance that may make the contents
19 injurious to health.
20 (7) If the food has been intentionally subjected to radiation, unless
21 the use of the radiation was in conformity with a rule or an
22 exemption in effect under section 5 of this chapter.
23 (8) If any valuable constituent has been in whole or in part
24 omitted or abstracted from the food.
25 (9) If any substance has been substituted wholly or in part.
26 (10) If damage or inferiority has been concealed in any manner.
27 (11) If any substance has been added to the food or mixed or
28 packed with the food to:
29 (A) increase the food's bulk or weight;
30 (B) reduce the food's quality or strength;
31 (C) make the food appear better or of greater value than the
32 food is; or
33 (D) create a deceptive appearance.
34 (12) If the food bears or contains a coal-tar color other than one
35 from a batch that has been certified by the federal Food and Drug
36 Administrator, as provided by regulations promulgated under
37 authority of the Federal Act.
38 (13) If the food is a confectionery and has partially or completely
39 imbedded embedded in the food any nonnutritive object.
40 However, this subdivision does not apply in the case of any
41 nonnutritive object if, in the judgment of the state department as
42 provided by rules, the nonnutritive object is of practical,
2023	IN 1045—LS 6215/DI 77 5
1 functional value to the confectionery product and would not make
2 the product injurious or hazardous to health.
3 (14) If the food is a confectionery and bears or contains any
4 alcohol other than alcohol not in excess of one-half of one percent
5 (0.5%) by volume derived solely from the use of flavoring
6 extracts.
7 (15) If the food is a confectionery and bears or contains any
8 nonnutritive substance. However, this subdivision does not apply
9 to a safe, nonnutritive substance if:
10 (A) the nonnutritive substance is in or on a confectionery for
11 a practical, functional purpose in the manufacture, packaging,
12 or storing of the confectionery; and
13 (B) the use of the substance does not promote deception of the
14 consumer or otherwise result in adulteration or misbranding in
15 violation of any provision of IC 16-42-1 through IC 16-42-4.
16 In addition, the state department may, for the purpose of
17 avoiding or resolving uncertainty as to the application of this
18 subdivision, adopt rules allowing or prohibiting the use of
19 particular nonnutritive substances.
20 (16) If the food falls below the standard of purity, quality, or
21 strength that the food purports or is represented to possess.
22 (17) If the food is or bears or contains any color additive that is
23 unsafe under section 5 of this chapter.
24 (b) Subsection (a)(8) and (a)(9) do not prohibit:
25 (1) the removal of butterfat from; or
26 (2) the addition of skim milk to;
27 dairy products that comply with the definitions and standards for dairy
28 products adopted by the state department.
29 (c) A food is not considered adulterated for containing low THC
30 hemp extract (as defined in IC 35-48-1-17.5) or craft hemp flower
31 (as defined in IC 35-31.5-2-68.8).
32 SECTION 7. IC 24-4-23 IS ADDED TO THE INDIANA CODE AS
33 A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY
34 1, 2023]:
35 Chapter 23. Distribution of Craft Hemp Flower
36 Sec. 1. As used in this chapter, "certificate of analysis" means
37 a certificate from an independent testing laboratory describing the
38 results of the laboratory's testing of a sample.
39 Sec. 2. As used in this chapter, "craft hemp flower" has the
40 meaning set forth in IC 35-31.5-2-68.8.
41 Sec. 3. As used in this chapter, "independent testing laboratory"
42 means a laboratory:
2023	IN 1045—LS 6215/DI 77 6
1 (1) with respect to which no person having a direct or indirect
2 interest in the laboratory also has a direct or indirect interest
3 in a facility that:
4 (A) processes, distributes, or sells craft hemp flower, or a
5 substantially similar substance in another jurisdiction;
6 (B) cultivates, processes, distributes, dispenses, or sells
7 marijuana;
8 (C) cultivates, processes, or distributes hemp; or
9 (D) processes, distributes, or sells low THC hemp extract
10 (as defined in IC 35-48-1-17.5); and
11 (2) that is accredited as a testing laboratory under
12 International Organization for Standardization (ISO) 17025
13 by a third party accrediting body such as the American
14 Association for Laboratory Accreditation (A2LA) or Assured
15 Calibration and Laboratory Accreditation Select Services
16 (ACLASS).
17 Sec. 4. As used in this chapter, "tamper evident packaging"
18 means a package having at least one (1) indicator or a barrier to
19 entry that, if breached or missing, can reasonably be expected to
20 provide visible evidence to consumers that tampering has occurred.
21 Sec. 5. (a) Before a person may distribute craft hemp flower, the
22 distributor must have a certificate of analysis prepared by an
23 independent testing laboratory showing the following:
24 (1) That the craft hemp flower is the product of a batch tested
25 by the independent testing laboratory.
26 (2) That the independent testing laboratory determined that
27 the batch contained not more than three-tenths percent
28 (0.3%) delta-9-tetrahydrocannabinol (THC), including
29 precursors, by weight, based on the testing of a random
30 sample of the batch.
31 (3) That the batch has been tested for and does not exceed the
32 acceptable levels set forth under section 7 of this chapter for
33 the following contaminants:
34 (A) Heavy metals, including cadmium, lead, arsenic, and
35 mercury.
36 (B) Pesticides.
37 (C) Herbicides.
38 (D) Mycotoxins.
39 (E) Bacterial toxins.
40 (F) Chemical solvent residues.
41 (4) The potency of the craft hemp flower, including the
42 projected percentage of:
2023	IN 1045—LS 6215/DI 77 7
1 (A) THC;
2 (B) cannabidiol; and
3 (C) other cannabinoids in the craft hemp flower;
4 by weight or volume.
5 (b) Each batch of craft hemp flower submitted to an
6 independent testing laboratory under this section must have been
7 harvested at the same time and cultivated in a contiguous area in
8 the same field or facility.
9 Sec. 6. Craft hemp flower must be distributed in tamper evident
10 packaging that contains the following information:
11 (1) A scannable bar code or QR code linked to a document
12 that contains information with respect to the craft hemp
13 flower, including the:
14 (A) batch identification number;
15 (B) product name;
16 (C) batch date;
17 (D) expiration date, which must be not more than two (2)
18 years from the date of harvest;
19 (E) batch size;
20 (F) total quantity produced;
21 (G) ingredients used, including the:
22 (i) ingredient name;
23 (ii) name of the company that manufactured the
24 ingredient;
25 (iii) company or product identification number or code,
26 if applicable; and
27 (iv) ingredient lot number; and
28 (H) download link for a certificate of analysis for the craft
29 hemp flower.
30 (2) The batch number.
31 (3) The website address to obtain batch information.
32 (4) The expiration date, which must be not more than two (2)
33 years from the date of harvest.
34 (5) The number of grams of craft hemp flower.
35 (6) The facility that produced the craft hemp flower.
36 (7) The fact that the product contains not more than
37 three-tenths percent (0.3%) delta-9-tetrahydrocannabinol
38 (THC), including precursors, by weight.
39 Sec. 7. A craft hemp flower may not be distributed if a
40 certificate of analysis prepared by an independent testing
41 laboratory shows any of the following:
42 (1) A concentration of metals that is more than any of the
2023	IN 1045—LS 6215/DI 77 8
1 following:
2 (A) Four-tenths (0.4) part per million of cadmium.
3 (B) Five-tenths (0.5) part per million of lead.
4 (C) Four-tenths (0.4) part per million of arsenic.
5 (D) Two-tenths (0.2) part per million of mercury.
6 (2) A concentration of microbiological units that is more than
7 any of the following:
8 (A) One (1) colony forming unit per gram of Shiga-Toxin
9 Escherichia coli.
10 (B) One (1) colony forming unit per gram of Salmonella
11 spp.
12 (C) Ten thousand (10,000) colony forming units of
13 culturable mold.
14 (3) A concentration of residual solvents and chemicals that is
15 more than any of the following:
16 (A) Five thousand (5,000) parts per million of butane.
17 (B) Two (2) parts per million of benzene.
18 (C) Five thousand (5,000) parts per million of heptane.
19 (D) Two hundred ninety (290) parts per million of hexane.
20 (E) Eight hundred ninety (890) parts per million of toluene.
21 (F) One (1) part per million of total xylenes, including
22 ortho-xylene, meta-xylene, and para-xylene.
23 Sec. 8. (a) A person in a motor vehicle who, while the motor
24 vehicle is in operation or the motor vehicle is located on the
25 right-of-way of a public highway (as defined in IC 9-25-2-4),
26 possesses a container that contains craft hemp flower, and:
27 (1) the container does not have tamper evident packaging; or
28 (2) the tamper evident packaging has a broken seal;
29 commits a Class C infraction.
30 (b) A violation of this section is not considered a moving traffic
31 violation:
32 (1) for purposes of IC 9-14-12-3; and
33 (2) for which points are assessed by the bureau of motor
34 vehicles under the point system.
35 Sec. 9. (a) A person who distributes or sells craft hemp flower
36 in violation of this chapter commits a Class B infraction. However,
37 the offense is a Class A infraction if the person has a prior
38 unrelated judgment for a violation of this chapter.
39 (b) The penalties in this section are in addition to any criminal
40 penalties that may be imposed for unlawful possession or
41 distribution of a controlled substance.
42 SECTION 8. IC 35-31.5-2-68.8 IS ADDED TO THE INDIANA
2023	IN 1045—LS 6215/DI 77 9
1 CODE AS A NEW SECTION TO READ AS FOLLOWS
2 [EFFECTIVE JULY 1, 2023]: Sec. 68.8. (a) "Craft hemp flower"
3 means the harvested reproductive organ, whether immature or
4 mature, of the female Cannabis sativa L. plant containing not more
5 than three-tenths percent (0.3%) delta-9-tetrahydrocannabinol
6 (THC), including precursors of THC, in a form that is intended to
7 allow THC to be introduced into the human body by inhalation of
8 smoke.
9 (b) The term does not include agricultural hemp seed (as defined
10 in IC 15-15-13-2).
11 SECTION 9. IC 35-31.5-2-100, AS AMENDED BY P.L.49-2020,
12 SECTION 25, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
13 JULY 1, 2023]: Sec. 100. (a) "Distribute", for purposes of
14 IC 35-45-4-8, has the meaning set forth in IC 35-45-4-8.
15 (b) "Distribute", for purposes of IC 35-46-1-10, has the meaning set
16 forth in IC 35-46-1-10(f). IC 35-46-1-10(a).
17 (c) "Distribute", for purposes of IC 35-46-1-10.2, has the meaning
18 set forth in IC 35-46-1-10.2(g). IC 35-46-1-10.2(a).
19 (d) "Distribute", for purposes of IC 35-47.5, has the meaning set
20 forth in IC 35-47.5-2-6.
21 (e) "Distribute", for purposes of IC 35-48, has the meaning set forth
22 in IC 35-48-1-14.
23 (f) "Distribute", for purposes of IC 35-49, has the meaning set forth
24 in IC 35-49-1-2.
25 SECTION 10. IC 35-46-1-10, AS AMENDED BY P.L.32-2021,
26 SECTION 97, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
27 JULY 1, 2023]: Sec. 10. (a) As used in this section, "distribute"
28 means to give tobacco, craft hemp flower, an e-liquid, or an
29 electronic cigarette to another person as a means of promoting,
30 advertising, or marketing the tobacco, craft hemp flower, e-liquid,
31 or electronic cigarette to the general public.
32 (a) (b) A person may not be charged with a violation under this
33 section and a violation under IC 7.1-7-6-5.
34 (b) (c) A person who knowingly:
35 (1) sells or distributes tobacco, craft hemp flower, an e-liquid, or
36 an electronic cigarette to a person less than twenty-one (21) years
37 of age; or
38 (2) purchases tobacco, craft hemp flower, an e-liquid, or an
39 electronic cigarette for delivery to another person who is less than
40 twenty-one (21) years of age;
41 commits a Class C infraction. For a sale to take place under this
42 section, the buyer must pay the seller for the tobacco, craft hemp
2023	IN 1045—LS 6215/DI 77 10
1 flower, e-liquid, or electronic cigarette.
2 (c) (d) It is not a defense that the person to whom the tobacco, craft
3 hemp flower, e-liquid, or electronic cigarette was sold or distributed
4 did not smoke, chew, inhale, or otherwise consume the tobacco, craft
5 hemp flower, e-liquid, or electronic cigarette.
6 (d) (e) The following defenses are available to a person accused of
7 selling or distributing tobacco, craft hemp flower, an e-liquid, or an
8 electronic cigarette to a person who is less than twenty-one (21) years
9 of age:
10 (1) The buyer or recipient produced a driver's license bearing the
11 purchaser's or recipient's photograph, showing that the purchaser
12 or recipient was of legal age to make the purchase.
13 (2) The buyer or recipient produced a photographic identification
14 card issued under IC 9-24-16-1, or a similar card issued under the
15 laws of another state or the federal government, showing that the
16 purchaser or recipient was of legal age to make the purchase.
17 (3) The appearance of the purchaser or recipient was such that an
18 ordinary prudent person would believe that the purchaser or
19 recipient was not less than thirty (30) years of age.
20 (e) (f) It is a defense that the accused person sold or delivered the
21 tobacco, craft hemp flower, e-liquid, or electronic cigarette to a
22 person who acted in the ordinary course of employment or a business
23 concerning tobacco, craft hemp flower, an e-liquid, or electronic
24 cigarettes including the following activities:
25 (1) Agriculture.
26 (2) Processing.
27 (3) Transporting.
28 (4) Wholesaling.
29 (5) Retailing.
30 (f) As used in this section, "distribute" means to give tobacco, an
31 e-liquid, or an electronic cigarette to another person as a means of
32 promoting, advertising, or marketing the tobacco, e-liquid, or electronic
33 cigarette to the general public.
34 (g) Unless the person buys or receives tobacco, craft hemp flower,
35 an e-liquid, or an electronic cigarette under the direction of a law
36 enforcement officer as part of an enforcement action, a person who
37 sells or distributes tobacco, craft hemp flower, an e-liquid, or an
38 electronic cigarette is not liable for a violation of this section unless the
39 person less than twenty-one (21) years of age who bought or received
40 the tobacco, craft hemp flower, e-liquid, or electronic cigarette is
41 issued a citation or summons under section 10.5 of this chapter.
42 (h) Notwithstanding IC 34-28-5-5(c), civil penalties collected under
2023	IN 1045—LS 6215/DI 77 11
1 this section must be deposited in the Richard D. Doyle youth tobacco
2 education and enforcement fund (IC 7.1-6-2-6).
3 SECTION 11. IC 35-46-1-10.2, AS AMENDED BY P.L.32-2021,
4 SECTION 98, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
5 JULY 1, 2023]: Sec. 10.2. (a) As used in this section, "distribute"
6 means to give tobacco, craft hemp flower, an e-liquid, or an
7 electronic cigarette to another person as a means of promoting,
8 advertising, or marketing the tobacco, craft hemp flower, e-liquid,
9 or electronic cigarette to the general public.
10 (a) (b) A person may not be charged with a violation under this
11 section and a violation under IC 7.1-7-6-5.
12 (b) (c) A retail establishment that sells or distributes tobacco, craft
13 hemp flower, an e-liquid, or an electronic cigarette to a person less
14 than twenty-one (21) years of age commits a Class C infraction. For a
15 sale to take place under this section, the buyer must pay the retail
16 establishment for the tobacco, craft hemp flower, e-liquid, or
17 electronic cigarette.
18 (c) (d) Notwithstanding IC 34-28-5-4(c), a civil judgment for an
19 infraction committed under this section must be imposed as follows:
20 (1) If the retail establishment at that specific business location has
21 not been issued a citation or summons for a violation of this
22 section in the previous one (1) year, a civil penalty of up to four
23 hundred dollars ($400).
24 (2) If the retail establishment at that specific business location has
25 had one (1) citation or summons issued for a violation of this
26 section in the previous one (1) year, a civil penalty of up to eight
27 hundred dollars ($800).
28 (3) If the retail establishment at that specific business location has
29 had two (2) citations or summonses issued for a violation of this
30 section in the previous one (1) year, a civil penalty of up to one
31 thousand four hundred dollars ($1,400).
32 (4) If the retail establishment at that specific business location has
33 had three (3) or more citations or summonses issued for a
34 violation of this section in the previous one (1) year, a civil
35 penalty of up to two thousand dollars ($2,000).
36 A retail establishment may not be issued a citation or summons for a
37 violation of this section more than once every twenty-four (24) hours
38 for each specific business location.
39 (d) (e) It is not a defense that the person to whom the tobacco, craft
40 hemp flower, e-liquid, or electronic cigarette was sold or distributed
41 did not smoke, chew, inhale, or otherwise consume the tobacco, craft
42 hemp flower, e-liquid, or electronic cigarette.
2023	IN 1045—LS 6215/DI 77 12
1 (e) (f) The following defenses are available to a retail establishment
2 accused of selling or distributing tobacco, craft hemp flower, an
3 e-liquid, or an electronic cigarette to a person who is less than
4 twenty-one (21) years of age:
5 (1) The buyer or recipient produced a driver's license bearing the
6 purchaser's or recipient's photograph showing that the purchaser
7 or recipient was of legal age to make the purchase.
8 (2) The buyer or recipient produced a photographic identification
9 card issued under IC 9-24-16-1 or a similar card issued under the
10 laws of another state or the federal government showing that the
11 purchaser or recipient was of legal age to make the purchase.
12 (3) The appearance of the purchaser or recipient was such that an
13 ordinary prudent person would believe that the purchaser or
14 recipient was not less than thirty (30) years of age.
15 (f) (g) It is a defense that the accused retail establishment sold or
16 delivered the tobacco, craft hemp flower, e-liquid, or electronic
17 cigarette to a person who acted in the ordinary course of employment
18 or a business concerning tobacco, craft hemp flower, an e-liquid, or
19 electronic cigarettes for the following activities:
20 (1) Agriculture.
21 (2) Processing.
22 (3) Transporting.
23 (4) Wholesaling.
24 (5) Retailing.
25 (g) As used in this section, "distribute" means to give tobacco, an
26 e-liquid, or an electronic cigarette to another person as a means of
27 promoting, advertising, or marketing the tobacco or electronic cigarette
28 to the general public.
29 (h) Unless a person buys or receives tobacco, craft hemp flower,
30 an e-liquid, or an electronic cigarette under the direction of a law
31 enforcement officer as part of an enforcement action, a retail
32 establishment that sells or distributes tobacco, craft hemp flower, an
33 e-liquid, or an electronic cigarette is not liable for a violation of this
34 section unless the person less than twenty-one (21) years of age who
35 bought or received the tobacco, craft hemp flower, e-liquid, or
36 electronic cigarette is issued a citation or summons under section 10.5
37 of this chapter.
38 (i) Notwithstanding IC 34-28-5-5(c), civil penalties collected under
39 this section must be deposited in the Richard D. Doyle youth tobacco
40 education and enforcement fund (IC 7.1-6-2-6).
41 (j) A person who violates subsection (b) (c) at least six (6) times in
42 any one (1) year commits habitual illegal sale of tobacco, sales, a Class
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1 B infraction.
2 SECTION 12. IC 35-46-1-10.5, AS AMENDED BY P.L.49-2020,
3 SECTION 32, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
4 JULY 1, 2023]: Sec. 10.5. (a) A person less than twenty-one (21) years
5 of age who:
6 (1) purchases tobacco, craft hemp flower, an e-liquid, or an
7 electronic cigarette;
8 (2) accepts tobacco, craft hemp flower, an e-liquid, or an
9 electronic cigarette for personal use; or
10 (3) possesses tobacco, craft hemp flower, an e-liquid, or an
11 electronic cigarette on the person's person;
12 commits a Class C infraction.
13 (b) It is a defense under subsection (a) that the accused person acted
14 in the ordinary course of employment in a business concerning tobacco,
15 craft hemp flower, an e-liquid, or an electronic cigarette for the
16 following activities:
17 (1) Agriculture.
18 (2) Processing.
19 (3) Transporting.
20 (4) Wholesaling.
21 (5) Retailing.
22 SECTION 13. IC 35-48-1-9.3, AS AMENDED BY P.L.80-2019,
23 SECTION 18, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
24 JULY 1, 2023]: Sec. 9.3. (a) "Controlled substance analog" means a
25 substance that, due to its chemical structure and potential for abuse or
26 misuse, meets the following criteria:
27 (1) The substance is substantially similar to a controlled substance
28 classified under IC 35-48-2.
29 (2) The substance has a narcotic, stimulant, depressant, or
30 hallucinogenic effect on the central nervous system or is
31 represented or intended to have a narcotic, stimulant, depressant,
32 or hallucinogenic effect on the central nervous system
33 substantially similar to or greater than that of a controlled
34 substance classified under IC 35-48-2.
35 (b) The definition set forth in subsection (a) does not include:
36 (1) a controlled substance;
37 (2) a legend drug;
38 (3) a substance for which there is an approved new drug
39 application;
40 (4) any compound, mixture, or preparation that contains any
41 controlled substance, that is not for administration to a human
42 being or an animal, and that is packaged in a form or
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1 concentration, or with adulterants or denaturants, such that as
2 packaged it does not present any significant potential for abuse;
3 or
4 (5) a substance to which an investigational exemption applies
5 under Section 505 of the federal Food, Drug and Cosmetic Act
6 (chapter 675, 52 Stat. 1052 (21 U.S.C. 355)), but only to the
7 extent that conduct with respect to the substance is pursuant to the
8 exemption; or
9 (6) low THC hemp extract; or
10 (7) craft hemp flower.
11 (c) For purposes of subsection (a), "substantially similar", as it
12 applies to the chemical structure of a substance, means that the
13 chemical structure of the substance, when compared to the structure of
14 a controlled substance, has a single difference in the structural formula
15 that substitutes one (1) atom or functional group for another, including:
16 (1) one (1) halogen for another halogen;
17 (2) one (1) hydrogen for a halogen;
18 (3) one (1) halogen for a hydrogen; or
19 (4) an alkyl group added or deleted:
20 (A) as a side chain to or from a molecule; or
21 (B) from a side chain of a molecule.
22 SECTION 14. IC 35-48-1-10.5 IS ADDED TO THE INDIANA
23 CODE AS A NEW SECTION TO READ AS FOLLOWS
24 [EFFECTIVE JULY 1, 2023]: Sec. 10.5. "Craft hemp flower" has
25 the meaning set forth in IC 35-31.5-2-68.8.
26 SECTION 15. IC 35-48-1-16.8, AS ADDED BY P.L.153-2018,
27 SECTION 19, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
28 JULY 1, 2023]: Sec. 16.8. "Hashish" does not include:
29 (1) low THC hemp extract; or
30 (2) craft hemp flower.
31 SECTION 16. IC 35-48-1-17.2 IS REPEALED [EFFECTIVE JULY
32 1, 2023]. Sec. 17.2. (a) "Hemp bud" means the harvested immature
33 reproductive organ of the female hemp plant.
34 (b) The term does not include agricultural hemp seed.
35 SECTION 17. IC 35-48-1-17.3 IS REPEALED [EFFECTIVE JULY
36 1, 2023]. Sec. 17.3. (a) "Hemp flower" means the harvested
37 reproductive organ, whether immature or mature, of the female hemp
38 plant.
39 (b) The term does not include agricultural hemp seed.
40 SECTION 18. IC 35-48-1-17.5, AS AMENDED BY P.L.190-2019,
41 SECTION 28, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
42 JULY 1, 2023]: Sec. 17.5. (a) "Low THC hemp extract" means a
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1 substance or compound that:
2 (1) is derived from or contains any part of the plant Cannabis
3 sativa L. that meets the definition of hemp under IC 15-15-13-6;
4 (2) contains not more than three-tenths percent (0.3%) total
5 delta-9-tetrahydrocannabinol (THC), including precursors, by
6 weight; and
7 (3) contains no other controlled substances.
8 (b) The term does not include:
9 (1) the harvested reproductive organ, whether immature or
10 mature, of the female hemp plant; or
11 (2) smokable hemp. craft hemp flower.
12 SECTION 19. IC 35-48-1-19, AS AMENDED BY P.L.190-2019,
13 SECTION 29, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
14 JULY 1, 2023]: Sec. 19. (a) "Marijuana" means any part of the plant
15 genus Cannabis whether growing or not; the seeds thereof; the resin
16 extracted from any part of the plant, including hashish and hash oil; any
17 compound, manufacture, salt, derivative, mixture, or preparation of the
18 plant, its seeds or resin.
19 (b) The term does not include:
20 (1) the mature stalks of the plant;
21 (2) fiber produced from the stalks;
22 (3) oil or cake made from the seeds of the plant;
23 (4) any other compound, manufacture, salt, derivative, mixture,
24 or preparation of the mature stalks (except the resin extracted
25 therefrom);
26 (5) the sterilized seed of the plant which is incapable of
27 germination;
28 (6) hemp (as defined by IC 15-15-13-6);
29 (7) low THC hemp extract; or
30 (8) smokable hemp. craft hemp flower.
31 SECTION 20. IC 35-48-1-26.6 IS REPEALED [EFFECTIVE JULY
32 1, 2023]. Sec. 26.6. (a) Except as provided in subsection (b), "smokable
33 hemp" means a product containing not more than three-tenths percent
34 (0.3%) delta-9-tetrahydrocannabinol (THC), including precursors and
35 derivatives of THC, in a form that allows THC to be introduced into the
36 human body by inhalation of smoke. The term includes:
37 (1) hemp bud; and
38 (2) hemp flower.
39 (b) The term does not include:
40 (1) a hemp plant that is; or
41 (2) parts of a hemp plant that are;
42 grown or handled by a licensee for processing or manufacturing into a
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1 legal hemp product.
2 SECTION 21. IC 35-48-4-10.1 IS REPEALED [EFFECTIVE JULY
3 1, 2023]. Sec. 10.1. (a) A person who:
4 (1) knowingly or intentionally:
5 (A) manufactures;
6 (B) finances the manufacture of;
7 (C) delivers;
8 (D) finances the delivery of; or
9 (E) possesses;
10 smokable hemp; or
11 (2) possesses smokable hemp with intent to:
12 (A) manufacture;
13 (B) finance the manufacture of;
14 (C) deliver; or
15 (D) finance the delivery of;
16 smokable hemp;
17 commits dealing in smokable hemp, a Class A misdemeanor.
18 (b) Subsection (a)(1)(B), (a)(1)(D), (a)(2)(B), and (a)(2)(D) do not
19 apply to:
20 (1) a financial institution organized or reorganized under the laws
21 of Indiana, any other state, or the United States; or
22 (2) any agency or instrumentality of the state or the United States.
23 (c) Subsection (a)(1)(C), (a)(1)(D), (a)(1)(E), (a)(2)(C), and
24 (a)(2)(D) do not apply to the shipment of smokable hemp from a
25 licensed producer in another state in continuous transit through Indiana
26 to a licensed handler in any state.
27 SECTION 22. IC 35-48-4-12, AS AMENDED BY P.L.156-2020,
28 SECTION 134, IS AMENDED TO READ AS FOLLOWS
29 [EFFECTIVE JULY 1, 2023]: Sec. 12. If a person who has no prior
30 conviction of an offense under this article relating to controlled
31 substances pleads guilty to possession of marijuana, hashish, or salvia
32 or smokable hemp as a misdemeanor, the court, without entering a
33 judgment of conviction and with the consent of the person, may defer
34 further proceedings and place the person in the custody of the court
35 under conditions determined by the court. Upon violation of a
36 condition of the custody, the court may enter a judgment of conviction.
37 However, if the person fulfills the conditions of the custody, the court
38 shall dismiss the charges against the person. There may be only one (1)
39 dismissal under this section with respect to a person.
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