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 2023 IN 1045—LS 6215/DI 77 13 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 2023 IN 1045—LS 6215/DI 77 14 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 2023 IN 1045—LS 6215/DI 77 15 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 2023 IN 1045—LS 6215/DI 77 16 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. 2023 IN 1045—LS 6215/DI 77