Introduced Version
HOUSE BILL No. 1065
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 2-5-47; IC 7.1-8; IC 15-15-13; IC 15-16-2-36;
IC 24-4-21; IC 24-4-22-1; IC 24-4-22-4.
Synopsis: Cannabis regulation. Establishes the cannabis compliance
advisory committee to review and evaluate certain rules, laws, and
programs. Establishes the cannabis compliance commission to regulate
all forms of legal cannabis in Indiana, including hemp and low THC
hemp extract.
Effective: July 1, 2023.
Errington
January 9, 2023, read first time and referred to Committee on Agriculture and Rural
Development.
2023 IN 1065—LS 6657/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. 1065
A BILL FOR AN ACT to amend the Indiana Code concerning
agriculture and animals.
Be it enacted by the General Assembly of the State of Indiana:
1 SECTION 1. IC 2-5-47 IS ADDED TO THE INDIANA CODE AS
2 A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY
3 1, 2023]:
4 Chapter 47. Cannabis Compliance Advisory Committee
5 Sec. 1. The following definitions apply throughout this chapter:
6 (1) "Advisory committee" means the cannabis compliance
7 advisory committee established by section 2 of this chapter.
8 (2) "Cannabis compliance commission" means the cannabis
9 compliance commission established by IC 7.1-8-2-1.
10 Sec. 2. The cannabis compliance advisory committee is
11 established.
12 Sec. 3. (a) The advisory committee consists of the following four
13 (4) voting members and five (5) nonvoting members:
14 (1) One (1) legislative member appointed by the speaker of the
15 house of representatives.
16 (2) One (1) legislative member appointed by the minority
17 leader of the house of representatives.
2023 IN 1065—LS 6657/DI 77 2
1 (3) One (1) legislative member appointed by the president pro
2 tempore of the senate.
3 (4) One (1) legislative member appointed by the minority
4 leader of the senate.
5 (5) One (1) representative of law enforcement, appointed as a
6 nonvoting member by the chairperson of the legislative
7 council.
8 (6) The commissioner of the department of state revenue or
9 the commissioner's designee, who serves ex officio as a
10 nonvoting member.
11 (7) The director of the Indiana state department of
12 agriculture or the director's designee, who serves ex officio as
13 a nonvoting member.
14 (8) The state seed commissioner or the commissioner's
15 designee, who serves ex officio as a nonvoting member.
16 (9) The executive director of the cannabis compliance
17 commission or the executive director's designee, who serves
18 ex officio as a nonvoting member.
19 (b) The chairperson of the legislative council shall annually
20 select one (1) of the voting members to serve as chairperson.
21 Sec. 4. (a) A legislative member of the advisory committee may
22 be removed at any time by the appointing authority who appointed
23 the legislative member.
24 (b) An appointed member of the advisory committee may be
25 removed at any time by the appointing authority who appointed
26 the member.
27 (c) If a vacancy exists on the advisory committee, the appointing
28 authority who appointed the former member whose position has
29 become vacant shall appoint an individual to fill the vacancy.
30 Sec. 5. Each member of the advisory committee is entitled to
31 receive the same per diem, mileage, and travel allowances paid to
32 individuals who serve as legislative and lay members, respectively,
33 of interim study committees established by the legislative council.
34 Sec. 6. The affirmative votes of a majority of the voting
35 members appointed to the advisory committee are required for the
36 advisory committee to take action on any measure, including final
37 reports.
38 Sec. 7. The advisory committee shall do the following:
39 (1) Review rules adopted by the cannabis compliance
40 commission.
41 (2) Review legislative proposals suggested by the cannabis
42 compliance commission.
2023 IN 1065—LS 6657/DI 77 3
1 (3) Evaluate the cannabis research and development program
2 under IC 7.1-8-5.
3 (4) Evaluate the operation of the hemp program under
4 IC 15-15-13.
5 (5) Evaluate the processing, packaging, distribution, and sale
6 of low THC hemp extract under IC 24-4-21 through
7 IC 24-4-22.
8 (6) Consider any other matter that relates to cannabis.
9 SECTION 2. IC 7.1-8 IS ADDED TO THE INDIANA CODE AS A
10 NEW ARTICLE TO READ AS FOLLOWS [EFFECTIVE JULY 1,
11 2023]:
12 ARTICLE 8. CANNABIS REGULATION
13 Chapter 1. Definitions
14 Sec. 1. As used in this article, "cannabis" means cannabis that
15 is legal under Indiana law, including hemp (as defined by
16 IC 15-15-13-6) and low THC hemp extract (as defined by
17 IC 35-48-1-17.5).
18 Chapter 2. General Provisions
19 Sec. 1. The cannabis compliance commission is established to
20 regulate the growth, processing, distribution, and sale of legal
21 cannabis in Indiana, including hemp and low THC hemp extract.
22 Sec. 2. (a) The cannabis compliance commission consists of:
23 (1) the cannabis compliance commission executive committee;
24 (2) the executive director; and
25 (3) other employees necessary to carry out the duties of the
26 cannabis compliance commission.
27 (b) The cannabis compliance commission executive committee
28 consists of four (4) commissioners, who shall hire the executive
29 director and direct and oversee the operation of the cannabis
30 compliance commission.
31 Sec. 3. (a) The cannabis compliance commission executive
32 committee commissioners shall be appointed by the governor.
33 (b) A commissioner is eligible for reappointment.
34 (c) Not more than two (2) commissioners may belong to the
35 same political party.
36 (d) A commissioner shall be appointed to a four (4) year term
37 that begins July 1. However, the initial terms begin July 1, 2023,
38 and must be staggered as follows:
39 (1) One (1) commissioner appointed for a one (1) year term.
40 (2) One (1) commissioner appointed for a two (2) year term.
41 (3) One (1) commissioner appointed for a three (3) year term.
42 (4) One (1) commissioner appointed for a four (4) year term.
2023 IN 1065—LS 6657/DI 77 4
1 (e) A commissioner serves the commissioner's term at the
2 pleasure of the governor.
3 Sec. 4. To be eligible for appointment as a commissioner, an
4 individual must have the following qualifications:
5 (1) The individual may not be employed by the state in any
6 other capacity.
7 (2) The individual must have good moral character.
8 (3) The individual must have been a resident of Indiana for at
9 least five (5) years immediately preceding the appointment.
10 Sec. 5. (a) The governor shall appoint, from among the four (4)
11 commissioners appointed under section 3(a) of this chapter:
12 (1) one (1) commissioner to serve as chairperson; and
13 (2) one (1) commissioner to serve as vice chairperson;
14 of the cannabis compliance commission executive committee.
15 (b) The vice chairperson shall act as the chairperson if the
16 chairperson is unable to attend a meeting of the cannabis
17 compliance commission executive committee.
18 Sec. 6. A commissioner appointed to fill a vacancy in the
19 cannabis compliance commission executive committee shall serve
20 only for the unexpired part of the original vacated term. In all
21 other respects, an appointment to fill a vacancy shall be made in
22 the same manner that an original appointment is made.
23 Sec. 7. As compensation for services, each commissioner is
24 entitled to the minimum salary per diem provided by
25 IC 4-10-11-2.1(b). A commissioner is also entitled to
26 reimbursement for traveling expenses as provided under
27 IC 4-13-1-4 and other expenses actually incurred in connection
28 with the commissioner's duties as provided in the state policies and
29 procedures established by the Indiana department of
30 administration and approved by the budget agency.
31 Sec. 8. (a) Each commissioner shall execute:
32 (1) a surety bond in the amount of ten thousand dollars
33 ($10,000), with surety approved by the governor; and
34 (2) an oath of office.
35 (b) The surety bond and the oath of office shall be filed in the
36 office of the secretary of state.
37 Sec. 9. The required surety bond executed and filed on behalf of
38 a commissioner shall be made payable to the state of Indiana and
39 conditioned upon the faithful discharge of the commissioner's
40 duties.
41 Sec. 10. The cannabis compliance commission executive
42 committee shall hold meetings at the call of the chairperson. The
2023 IN 1065—LS 6657/DI 77 5
1 cannabis compliance commission executive committee may
2 establish rules governing meetings.
3 Sec. 11. (a) Three (3) cannabis compliance commission
4 commissioners constitute a quorum for the transaction of business.
5 (b) Each commissioner has one (1) vote.
6 (c) Action of the cannabis compliance commission executive
7 committee may be taken only upon the affirmative votes of at least
8 two (2) commissioners. If a vote is a tie, the position for which the
9 chairperson voted prevails, as long as that position has received the
10 affirmative votes of at least two (2) commissioners.
11 Sec. 12. A commissioner may not solicit or accept a political
12 contribution from any individual or entity that has a permit or has
13 applied for a permit issued by the cannabis compliance
14 commission, or that is otherwise regulated by the cannabis
15 compliance commission. However, the right of a commissioner to
16 vote as the commissioner chooses and to express the
17 commissioner's opinions on political subjects and candidates may
18 not be impaired.
19 Chapter 3. Employees and Administration
20 Sec. 1. (a) The cannabis compliance commission executive
21 committee shall appoint an executive director to assist the cannabis
22 compliance commission in the efficient administration of its powers
23 and duties.
24 (b) The cannabis compliance commission executive committee
25 shall fix the salary of the executive director, subject to the approval
26 of the budget agency.
27 (c) The executive director:
28 (1) is the executive agent of the cannabis compliance
29 commission executive committee in the administration of the
30 committee's policies; and
31 (2) has the other powers and duties delegated to the executive
32 director by the cannabis compliance commission executive
33 committee or specifically assigned to the executive director by
34 statute.
35 Sec. 2. The executive director has the power to employ all
36 necessary employees, determine their duties, and, subject to the
37 approval of the cannabis compliance commission executive
38 committee and the budget agency, fix their salaries.
39 Chapter 4. Powers and Duties
40 Sec. 1. The chairperson is the presiding officer at the meetings
41 of the cannabis compliance commission executive committee. The
42 chairperson, together with the executive director, shall prepare,
2023 IN 1065—LS 6657/DI 77 6
1 certify, and authenticate all proceedings, minutes, records, rules,
2 and regulations of the cannabis compliance commission executive
3 committee. The chairperson shall also perform all other duties as
4 imposed on the chairperson by this title.
5 Sec. 2. (a) The cannabis compliance commission has the general
6 power to organize its work, and to enforce and administer:
7 (1) this article;
8 (2) IC 15-15-13 (hemp);
9 (3) IC 24-4-21 (distribution of low THC hemp extract);
10 (4) IC 24-4-22 (sale of low THC hemp extract); and
11 (5) rules adopted by the cannabis compliance commission.
12 (b) The cannabis compliance commission has the following
13 additional powers and duties:
14 (1) To have a designated agent, upon presentation of proper
15 credentials, enter upon private or public property to inspect
16 for and investigate possible violations of:
17 (A) this article;
18 (B) IC 15-15-13 (hemp);
19 (C) IC 24-4-21 (distribution of low THC hemp extract);
20 (D) IC 24-4-22 (sale of low THC hemp extract); and
21 (E) rules adopted by the cannabis compliance commission.
22 (2) To employ or contract for the legal, professional, and
23 other personnel and assistance that is necessary for the
24 efficient performance of the cannabis compliance
25 commission's duties.
26 (3) To issue orders to:
27 (A) secure compliance with:
28 (i) this article;
29 (ii) IC 15-15-13 (hemp);
30 (iii) IC 24-4-21 (distribution of low THC hemp extract);
31 (iv) IC 24-4-22 (sale of low THC hemp extract); and
32 (v) rules adopted by the cannabis compliance
33 commission; and
34 (B) assess civil penalties.
35 (4) To bring an appropriate action in court to:
36 (A) enforce any order of the cannabis compliance
37 commission;
38 (B) collect any penalties or fees; and
39 (C) procure or secure compliance with:
40 (i) this article;
41 (ii) IC 15-15-13 (hemp);
42 (iii) IC 24-4-21 (distribution of low THC hemp extract);
2023 IN 1065—LS 6657/DI 77 7
1 (iv) IC 24-4-22 (sale of low THC hemp extract); and
2 (v) rules adopted by the cannabis compliance
3 commission.
4 (5) To hold hearings before the cannabis compliance
5 commission or its representative.
6 (6) To take testimony and receive evidence.
7 (7) To conduct inquiries with or without a hearing.
8 (8) To receive reports of investigators or other governmental
9 officers and employees.
10 (9) To administer oaths.
11 (10) To subpoena witnesses and to compel them to appear and
12 testify.
13 (11) To certify copies of records of the cannabis compliance
14 commission or any other document or record on file with the
15 cannabis compliance commission.
16 (12) To fix the form, mode, manner, time, and number of
17 times for the posting or publication of any required notices if
18 not otherwise provided.
19 (13) To adopt rules under IC 4-22-2 to carry out:
20 (A) this article;
21 (B) IC 15-15-13 (hemp);
22 (C) IC 24-4-21 (distribution of low THC hemp extract);
23 and
24 (D) IC 24-4-22 (sale of low THC hemp extract).
25 (14) To establish fees for licenses, permits, and applications.
26 (15) To retain and consult with experts and other consultants.
27 (16) To carry out any other duties assigned by statute.
28 Sec. 3. The cannabis compliance commission shall adopt rules
29 under IC 4-22-2 to prescribe the forms for all applications,
30 documents, permits, and licenses used in the administration of:
31 (1) this article;
32 (2) IC 15-15-13 (hemp);
33 (3) IC 24-4-21 (distribution of low THC hemp extract);
34 (4) IC 24-4-22 (sale of low THC hemp extract); and
35 (5) rules adopted by the cannabis compliance commission.
36 Sec. 4. The cannabis compliance commission has the following
37 duties:
38 (1) To regulate, enforce, and carry out the provisions of
39 IC 15-15-13 (hemp).
40 (2) To regulate, enforce, and carry out the provisions of
41 IC 24-4-21 and IC 24-4-22 (distribution and sale of low THC
42 hemp extract).
2023 IN 1065—LS 6657/DI 77 8
1 (3) To adopt protocols to:
2 (A) prevent fraud;
3 (B) ensure the accuracy of information contained in an
4 application relating to hemp and low THC hemp extract;
5 and
6 (C) protect the privacy of an applicant.
7 (4) To encourage research concerning cannabis and issue
8 research licenses as described in IC 7.1-8-5.
9 Chapter 5. Research and Development
10 Sec. 1. To permit and encourage research concerning cannabis:
11 (1) an accredited institution of higher education with a
12 physical presence in Indiana; and
13 (2) a pharmaceutical or agricultural business having a
14 research facility in Indiana;
15 may apply to the cannabis compliance commission for a license to
16 conduct research concerning cannabis.
17 Sec. 2. An application under this chapter must include the
18 following:
19 (1) The nature of the research project.
20 (2) The names of the individuals who will conduct the
21 research project.
22 (3) The approximate quantity of cannabis that will be used in
23 the research project.
24 (4) The security protocol to be implemented to ensure that
25 cannabis is not diverted for uses other than the research
26 project.
27 (5) Any other information required by the cannabis
28 compliance commission.
29 Sec. 3. Upon receipt of a completed application, the cannabis
30 compliance commission may issue a research license to the
31 accredited institution of higher education or pharmaceutical or
32 agricultural business. The research license must specifically list the
33 names of each individual participating in the research project who
34 will have custody or control of cannabis for research purposes and
35 the approximate quantity of cannabis that will be used in the
36 research project.
37 Sec. 4. The cannabis compliance commission may charge a
38 reasonable fee for issuance of a research license.
39 SECTION 3. IC 15-15-13-0.5, AS ADDED BY P.L.165-2014,
40 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
41 JULY 1, 2023]: Sec. 0.5. The state seed commissioner cannabis
42 compliance commission shall administer this chapter.
2023 IN 1065—LS 6657/DI 77 9
1 SECTION 4. IC 15-15-13-1, AS AMENDED BY P.L.190-2019,
2 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3 JULY 1, 2023]: Sec. 1. (a) Nothing in this chapter authorizes any
4 person to violate any federal law or regulation.
5 (b) Nothing in this chapter authorizes the state seed commissioner
6 to regulate a hemp product.
7 SECTION 5. IC 15-15-13-2, AS ADDED BY P.L.165-2014,
8 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
9 JULY 1, 2023]: Sec. 2. As used in this chapter, "agricultural hemp
10 seed" means Cannabis sativa seed that meets any labeling, quality, and
11 other standards set by the state seed commissioner cannabis
12 compliance commission and that is intended for sale or is sold to, or
13 purchased by, licensed growers for planting.
14 SECTION 6. IC 15-15-13-2.5 IS ADDED TO THE INDIANA
15 CODE AS A NEW SECTION TO READ AS FOLLOWS
16 [EFFECTIVE JULY 1, 2023]: Sec. 2.5. As used in this chapter,
17 "cannabis compliance commission" means the cannabis
18 compliance commission established by IC 7.1-8-2-1.
19 SECTION 7. IC 15-15-13-7, AS AMENDED BY P.L.190-2019,
20 SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
21 JULY 1, 2023]: Sec. 7. (a) Subject to section 15 of this chapter, The
22 production of, possession of, scientific study of, and commerce in hemp
23 is authorized in Indiana. Hemp is subject to regulation by the state seed
24 commissioner. cannabis compliance commission. The state seed
25 commissioner cannabis compliance commission shall adopt rules to
26 oversee the licensing, production, and management of:
27 (1) hemp; and
28 (2) agricultural hemp seed.
29 (b) All growers and handlers must have a hemp license issued by
30 the state seed commissioner. cannabis compliance commission.
31 Growers and handlers engaged in the production of agricultural hemp
32 seed must also have an agricultural hemp seed production license.
33 (c) An application for a hemp license or agricultural hemp seed
34 production license must include the following:
35 (1) The name and address of the applicant.
36 (2) The name and address of the hemp operation of the applicant.
37 (3) The global positioning system coordinates and legal
38 description of the property used for the hemp operation.
39 (4) If the hemp license or agricultural hemp seed production
40 license application is made by a grower, the acreage size of the
41 field where the hemp will be grown.
42 (5) A statement signed by the applicant, under penalty of perjury,
2023 IN 1065—LS 6657/DI 77 10
1 that the person applying for the hemp license or agricultural hemp
2 seed production license has not been convicted of a drug related
3 felony or misdemeanor in the previous ten (10) years.
4 (6) A written consent allowing the state police department to
5 conduct a state or national criminal history background check.
6 (7) A written consent allowing the state police department, the
7 state seed commissioner, cannabis compliance commission, or
8 the state seed commissioner's cannabis compliance
9 commission's authorized representative, if a license is issued to
10 the applicant, to conduct aerial inspections and to enter the
11 premises on which the hemp is grown to conduct physical
12 inspections of hemp planted and grown by the applicant, and to
13 ensure the plants meet the definition of hemp as set forth in
14 section 6 of this chapter.
15 (8) A nonrefundable application fee, which must include the
16 amount necessary to conduct a state or national criminal history
17 background check, in an amount determined by the state seed
18 commissioner. cannabis compliance commission.
19 (9) Any other information required by the state seed
20 commissioner. cannabis compliance commission.
21 (d) Rules adopted by the state seed commissioner before July 1,
22 2023, concerning hemp are considered, after June 30, 2023, rules
23 of the cannabis compliance commission.
24 SECTION 8. IC 15-15-13-8, AS AMENDED BY P.L.156-2020,
25 SECTION 62, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
26 JULY 1, 2023]: Sec. 8. (a) Each license application received under this
27 chapter must be processed as follows:
28 (1) Upon receipt of a license application, the state seed
29 commissioner cannabis compliance commission shall do one (1)
30 of the following:
31 (A) Forward a copy of the application to the state police
32 department. The state police department shall then do the
33 following:
34 (i) Perform a state or national criminal history background
35 check of the applicant.
36 (ii) Determine if the requirements under section 7(c)(5) of
37 this chapter concerning prior criminal convictions have been
38 met.
39 (iii) Return the application to the state seed commissioner
40 cannabis compliance commission along with the state
41 police department's determinations and a copy of the state or
42 national criminal history background check.
2023 IN 1065—LS 6657/DI 77 11
1 (B) Do the following:
2 (i) Perform a state or national criminal history background
3 check of the applicant under the same standards as the state
4 police department would perform.
5 (ii) Determine if the requirements under section 7(c)(5) of
6 this chapter concerning prior criminal convictions have been
7 met.
8 (2) The state seed commissioner cannabis compliance
9 commission shall review the license application and the criminal
10 history background check.
11 (b) If the state seed commissioner cannabis compliance
12 commission determines that all the requirements under this chapter
13 have been met and that a license should be granted to the applicant, the
14 state seed commissioner cannabis compliance commission shall
15 approve the application for issuance of a license.
16 (c) A hemp license or agricultural hemp seed production license
17 expires on December 31 of the year for which the license was issued,
18 unless revoked. A hemp license or agricultural hemp seed production
19 license may be renewed in accordance with rules adopted by the state
20 seed commissioner cannabis compliance commission and is
21 nontransferable.
22 SECTION 9. IC 15-15-13-9, AS AMENDED BY P.L.190-2019,
23 SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
24 JULY 1, 2023]: Sec. 9. (a) An agricultural hemp seed production
25 license issued under this chapter authorizes a grower or handler to
26 produce and handle agricultural hemp seed for sale to licensed hemp
27 growers and handlers. A seller of agricultural hemp seed shall ensure
28 that the seed complies with any standards set by the state seed
29 commissioner. cannabis compliance commission. The state seed
30 commissioner cannabis compliance commission shall make available
31 to growers information that identifies sellers of agricultural hemp seed.
32 (b) A person who sells agricultural hemp seed to a grower must be
33 a seed distributor who has a permit under IC 15-15-1-34.
34 (c) All growers and handlers must keep records in accordance with
35 rules adopted by the state seed commissioner. cannabis compliance
36 commission. Upon at least three (3) days notice, the state seed
37 commissioner cannabis compliance commission may audit the
38 required records during normal business hours. The state seed
39 commissioner cannabis compliance commission may conduct an
40 audit for the purpose of ensuring compliance with:
41 (1) this chapter;
42 (2) rules adopted by the state seed commissioner; cannabis
2023 IN 1065—LS 6657/DI 77 12
1 compliance commission; or
2 (3) hemp license or agricultural hemp seed production license
3 requirements, terms, and conditions.
4 (d) In addition to an audit conducted in accordance with subsection
5 (c), the state seed commissioner cannabis compliance commission
6 may inspect independently, or in cooperation with the state police
7 department, a federal law enforcement agency, or a local law
8 enforcement agency, any hemp crop during the crop's growth phase and
9 take a representative composite sample for field analysis. If a crop
10 contains an average delta-9-tetrahydrocannabinol (THC) concentration
11 exceeding three-tenths of one percent (0.3%) on a dry weight basis, the
12 state seed commissioner cannabis compliance commission may
13 detain, seize, or embargo the crop.
14 (e) The state seed commissioner cannabis compliance commission
15 may revoke a license issued under this chapter to a person that fails to
16 cooperate with:
17 (1) the state seed commissioner; cannabis compliance
18 commission;
19 (2) the state police;
20 (3) a federal law enforcement agency; or
21 (4) a local law enforcement agency;
22 in an inspection, or in the taking of a sample, under subsection (d).
23 (f) A failure to cooperate described in subsection (e) constitutes
24 probable cause for the state seed commissioner, cannabis compliance
25 commission, state police, federal law enforcement agency, or local law
26 enforcement agency to search the premises of the licensee's hemp
27 operation.
28 (g) If the state police department, a federal law enforcement agency,
29 or a local law enforcement agency cooperates with the state seed
30 commissioner cannabis compliance commission in the detention,
31 seizure, or embargo of a crop under this section:
32 (1) the state police department, federal law enforcement agency,
33 or local law enforcement agency; and
34 (2) any officer or employee of the state police department, federal
35 law enforcement agency, or local law enforcement agency who is
36 involved in the detention, seizure, or embargo;
37 is immune from civil liability for the detention, seizure, or embargo.
38 (h) The state seed commissioner cannabis compliance commission
39 may order a hemp crop that is detained, seized, or embargoed for
40 noncompliance with this chapter to be destroyed by the owner.
41 However, except as prohibited by federal law, the grower may appeal
42 to the state seed commissioner cannabis compliance commission for
2023 IN 1065—LS 6657/DI 77 13
1 the hemp crop to be diverted to a willing licensed processor for
2 processing and sale for industrial use. A hemp crop that is detained,
3 seized, or embargoed may not be used for cannabidiol, other extracts,
4 oil, food, or cosmetic products that are used for humans or animals.
5 (i) A grower shall reimburse the state seed commissioner cannabis
6 compliance commission for the cost of testing conducted on the
7 grower's crop under this section.
8 SECTION 10. IC 15-15-13-9.5, AS ADDED BY P.L.190-2019,
9 SECTION 11, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
10 JULY 1, 2023]: Sec. 9.5. (a) A person who is a handler licensed under
11 this section may distribute clones and other nonseed propagative
12 materials of a hemp plant using the person's own labeling, if the
13 distributor does the following:
14 (1) Complies with the requirements of this chapter.
15 (2) Reports the variety and quantity of each variety of the
16 propagative material of plant sold.
17 (3) Pays the inspection fee on the basis of the report.
18 (4) Labels the propagative material with the information required
19 by the state seed commissioner. cannabis compliance
20 commission.
21 (5) Keeps records to accurately determine the named varieties and
22 the number of plants of each variety distributed.
23 (6) Grants the state seed commissioner cannabis compliance
24 commission or the state seed commissioner's cannabis
25 compliance commission's authorized representative access to
26 examine the handler's records and verify the quantity and each
27 variety of propagative material distributed.
28 (7) Report, under oath, to the state seed commissioner cannabis
29 compliance commission on forms furnished by the state seed
30 commissioner cannabis compliance commission each variety
31 and quantity of propagative material sold during each semiannual
32 period.
33 (8) Any other information or conditions stated in the application.
34 (b) The state seed commissioner cannabis compliance commission
35 may revoke a handler's license if the commissioner commission
36 determines any of the following:
37 (1) That the licensee has not complied with the requirements
38 under this chapter.
39 (2) The report required in subsection (a) has not been submitted
40 and is more than ten (10) days late.
41 (3) The report required in subsection (a) contained false
42 information.
2023 IN 1065—LS 6657/DI 77 14
1 (4) The labeling requirements under this chapter have not been
2 met.
3 (c) If the inspection fee has not been paid and is more than ten (10)
4 days late, the state seed commissioner cannabis compliance
5 commission shall assess a late fee.
6 (d) Each year the:
7 (1) report required under subsection (a)(7); and
8 (2) inspection fees required under this chapter;
9 for the period beginning on January 1 and ending on June 30 and for
10 the period beginning on July 1 and ending on December 31 are due not
11 more than thirty (30) days after the end of the semiannual period.
12 SECTION 11. IC 15-15-13-10, AS ADDED BY P.L.165-2014,
13 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
14 JULY 1, 2023]: Sec. 10. The amount of any fees charged growers and
15 handlers by the state seed commissioner cannabis compliance
16 commission under this chapter must be sufficient to cover the cost of
17 the administration of this chapter, including the cost of conducting
18 audits and testing.
19 SECTION 12. IC 15-15-13-11, AS AMENDED BY P.L.190-2019,
20 SECTION 12, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
21 JULY 1, 2023]: Sec. 11. Only a hemp licensee, the licensee's designee,
22 or the licensee's agents may be permitted to transport hemp off a
23 production site. When transporting hemp off the production site, the
24 hemp licensee, designee, or agent shall have in the licensee's,
25 designee's, or agent's possession the licensing documents from the state
26 seed commissioner cannabis compliance commission evidencing that
27 the hemp is from certified seed produced by a licensed grower.
28 SECTION 13. IC 15-15-13-12, AS AMENDED BY P.L.156-2020,
29 SECTION 63, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
30 JULY 1, 2023]: Sec. 12. The state seed commissioner cannabis
31 compliance commission is responsible for the following:
32 (1) Monitoring the hemp grown by any license holder.
33 (2) Conducting random testing of the hemp for compliance with
34 tetrahydrocannabinol (THC) levels. The state seed commissioner
35 cannabis compliance commission may enter into agreements
36 with one (1) or more laboratories selected by the Indiana state
37 police department to perform testing under this subdivision.
38 (3) Establishing necessary testing criteria and protocols, including
39 a procedure for testing, using post decarboxylation or other
40 similarly reliable methods, for delta-9-tetrahydrocannabinol
41 concentration levels of the hemp produced.
42 (4) Establishing the minimum number of acres to be planted
2023 IN 1065—LS 6657/DI 77 15
1 under each license issued under this chapter.
2 (5) Regulating any propagative material of a hemp plant.
3 SECTION 14. IC 15-15-13-13, AS AMENDED BY P.L.190-2019,
4 SECTION 14, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
5 JULY 1, 2023]: Sec. 13. (a) Subject to section 13.5 of this chapter, in
6 addition to any other liability or penalty provided by law, the state seed
7 commissioner cannabis compliance commission may revoke or refuse
8 to issue or renew a hemp license or an agricultural hemp seed
9 production license and may impose a civil penalty for a violation of:
10 (1) a license requirement;
11 (2) license terms or conditions;
12 (3) a rule relating to growing or handling hemp; or
13 (4) section 19 of this chapter.
14 (b) The state seed commissioner cannabis compliance commission
15 may not impose a civil penalty under this section that exceeds two
16 thousand five hundred dollars ($2,500).
17 (c) The state seed commissioner cannabis compliance commission
18 may revoke or refuse to issue or renew a hemp license or an
19 agricultural hemp seed production license for a violation of any rule of
20 the state seed commissioner cannabis compliance commission that
21 pertains to agricultural operations or activities other than hemp
22 growing or handling.
23 (d) Any civil penalties collected under this section shall be
24 transferred to the Indiana state department of agriculture and used for
25 hemp marketing and research purposes.
26 (e) In addition to payment of any civil penalty imposed under this
27 section, a person who commits a violation described in subsection (a)
28 shall reimburse the state seed commissioner cannabis compliance
29 commission for any costs incurred by the state seed commissioner
30 cannabis compliance commission for laboratory testing of material
31 pertaining to the violation.
32 SECTION 15. IC 15-15-13-13.5, AS AMENDED BY P.L.156-2020,
33 SECTION 64, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
34 JULY 1, 2023]: Sec. 13.5. (a) Except as provided in subsection (b), the
35 state seed commissioner cannabis compliance commission shall give
36 a person who negligently violates this chapter a reasonable time,
37 determined by the state seed commissioner, cannabis compliance
38 commission, to correct the violation without imposing a penalty under
39 section 13 of this chapter. However, the state seed commissioner
40 cannabis compliance commission may require the person who
41 committed the violation to comply with a corrective action plan
42 determined by the state seed commissioner cannabis compliance
2023 IN 1065—LS 6657/DI 77 16
1 commission and report to the state seed commissioner cannabis
2 compliance commission on compliance with the corrective action
3 plan.
4 (b) A person who commits a negligent violation of this chapter three
5 (3) times in a five (5) year period shall immediately be ineligible to
6 produce hemp for five (5) years.
7 (c) If the state seed commissioner cannabis compliance
8 commission believes that a person has knowingly or intentionally
9 violated this chapter, the state seed commissioner cannabis
10 compliance commission shall notify:
11 (1) the superintendent of the state police department; and
12 (2) the prosecuting attorney of the county in which the violation
13 occurred;
14 of the violation.
15 (d) A person who commits a negligent violation under this chapter
16 is subject to a late fee as established by rule adopted by the state seed
17 commissioner. cannabis compliance commission.
18 SECTION 16. IC 15-15-13-14, AS AMENDED BY P.L.190-2019,
19 SECTION 16, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
20 JULY 1, 2023]: Sec. 14. (a) The state seed commissioner cannabis
21 compliance commission shall adopt rules under IC 4-22-2 to
22 implement and administer this chapter.
23 (b) The state seed commissioner cannabis compliance commission
24 may adopt emergency rules in the manner provided under
25 IC 4-22-2-37.1 to comply with any federal requirement under the
26 Agriculture Improvement Act of 2018 to implement and administer this
27 chapter.
28 SECTION 17. IC 15-15-13-15 IS REPEALED [EFFECTIVE JULY
29 1, 2023]. Sec. 15. Before December 31, 2019, the state seed
30 commissioner, after consultation with the governor, the director of the
31 state department of agriculture, and the superintendent of the state
32 police department, shall submit a plan that monitors and regulates the
33 production of hemp to the United States Department of Agriculture. If
34 the United States Department of Agriculture disapproves the plan, the
35 state seed commissioner shall submit an amended plan to the United
36 States Department of Agriculture.
37 SECTION 18. IC 15-15-13-16, AS ADDED BY P.L.165-2014,
38 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
39 JULY 1, 2023]: Sec. 16. (a) The state seed commissioner cannabis
40 compliance commission shall pay all fees collected under this chapter
41 to the treasurer of Purdue University.
42 (b) The board of trustees of Purdue University shall expend the fees
2023 IN 1065—LS 6657/DI 77 17
1 on proper vouchers filed with the treasurer of Purdue University. The
2 treasurer shall pay vouchers for the following expenses:
3 (1) The employment of inspectors and seed analysts.
4 (2) Procuring samples.
5 (3) Printing bulletins giving the results of inspection.
6 (4) Any other expenses of the Purdue University agricultural
7 programs authorized by law and for implementing this chapter.
8 (c) The dean of agriculture of Purdue University shall make and
9 submit a financial report to the governor in such form as the state board
10 of accounts requires, showing the total receipts and expenditures of all
11 fees received under this chapter.
12 (d) Excess funds from the collection of fees under this chapter are
13 subject to IC 15-16-2-36.
14 SECTION 19. IC 15-15-13-17, AS AMENDED BY P.L.190-2019,
15 SECTION 18, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
16 JULY 1, 2023]: Sec. 17. (a) The seed commissioner cannabis
17 compliance commission may keep the:
18 (1) names of growers and handlers who are licensed under this
19 chapter; and
20 (2) locations of licensed hemp crops;
21 confidential for purposes of IC 5-14-3.
22 (b) The seed commissioner cannabis compliance commission may
23 share confidential information under subsection (a) with the state
24 police department, law enforcement officers (as defined in
25 IC 35-31.5-2-185), and federal enforcement officers (as defined in
26 IC 35-31.5-2-129).
27 SECTION 20. IC 15-15-13-19, AS ADDED BY P.L.190-2019,
28 SECTION 20, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
29 JULY 1, 2023]: Sec. 19. (a) Hemp bud (as defined in IC 35-48-1-17.2)
30 and hemp flower (as defined in IC 35-48-1-17.3) may be sold only to
31 a processor licensed under this chapter.
32 (b) The state seed commissioner cannabis compliance commission
33 may impose a civil penalty under section 13 of this chapter for a
34 violation of subsection (a).
35 SECTION 21. IC 15-15-13-20, AS ADDED BY P.L.190-2019,
36 SECTION 21, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
37 JULY 1, 2023]: Sec. 20. (a) A person who knowingly or intentionally
38 violates:
39 (1) a term, condition, or requirement of a license issued; or
40 (2) a rule adopted;
41 under this chapter is subject to a civil penalty, determined by the state
42 seed commissioner, cannabis compliance commission, not to exceed
2023 IN 1065—LS 6657/DI 77 18
1 ten thousand dollars ($10,000) per violation. The state seed
2 commissioner cannabis compliance commission may also revoke the
3 license of a person who violates this subsection.
4 (b) A person who knowingly or intentionally:
5 (1) grows hemp;
6 (2) handles hemp; or
7 (3) sells agricultural hemp seed;
8 not including smokable hemp (as defined by IC 35-48-1-26.6), and is
9 not licensed under this chapter, commits a Class A misdemeanor.
10 SECTION 22. IC 15-16-2-36, AS AMENDED BY P.L.141-2018,
11 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
12 JULY 1, 2023]: Sec. 36. (a) Notwithstanding any other law, all excess
13 funds accumulated from the fees collected by:
14 (1) the state chemist, under this chapter, IC 15-15-2, IC 15-16-4,
15 IC 15-16-5, and IC 15-19-7; and
16 (2) the state seed commissioner under IC 15-15-1 and, before
17 July 1, 2023, IC 15-15-13; and
18 (3) after June 30, 2023, the cannabis compliance commission
19 under IC 15-15-13;
20 shall be paid to the treasurer of Purdue University. The funds shall be
21 administered by the board of trustees of Purdue University.
22 (b) On approval of the governor and the budget agency, the board
23 of trustees may spend the excess funds for the construction, operation,
24 rehabilitation, and repair of buildings, structures, or other facilities
25 used for:
26 (1) carrying out the purposes of those chapters referred to in
27 subsection (a) under which the fees are collected; or
28 (2) the agricultural programs authorized by law and in support of
29 the purposes of the chapters referred to in subsection (a).
30 SECTION 23. IC 24-4-21-1, AS AMENDED BY P.L.190-2019,
31 SECTION 23, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
32 JULY 1, 2023]: Sec. 1. The following definitions apply throughout this
33 chapter:
34 (1) "Cannabis compliance commission" means the cannabis
35 compliance commission established by IC 7.1-8-2-1.
36 (1) (2) "Certificate of analysis" means a certificate from an
37 independent testing laboratory describing the results of the
38 laboratory's testing of a sample.
39 (2) (3) "Independent testing laboratory" means a laboratory:
40 (A) with respect to which no person having a direct or indirect
41 interest in the laboratory also has a direct or indirect interest
42 in a facility that:
2023 IN 1065—LS 6657/DI 77 19
1 (i) processes, distributes, or sells low THC hemp extract, or
2 a substantially similar substance in another jurisdiction;
3 (ii) cultivates, processes, distributes, dispenses, or sells
4 marijuana; or
5 (iii) cultivates, processes, or distributes hemp; and
6 (B) that is accredited as a testing laboratory to International
7 Organization for Standardization (ISO) 17025 by a third party
8 accrediting body such as the American Association for
9 Laboratory Accreditation (A2LA) or Assured Calibration and
10 Laboratory Accreditation Select Services (ACLASS).
11 (3) (4) "Low THC hemp extract" has the meaning set forth in
12 IC 35-48-1-17.5.
13 SECTION 24. IC 24-4-21-1.5 IS ADDED TO THE INDIANA
14 CODE AS A NEW SECTION TO READ AS FOLLOWS
15 [EFFECTIVE JULY 1, 2023]: Sec. 1.5. (a) The cannabis compliance
16 commission shall administer and enforce this chapter.
17 (b) The cannabis compliance commission may:
18 (1) conduct inspections, review certifications, inspect
19 packaging, and engage in other enforcement actions to ensure
20 compliance with this chapter; and
21 (2) seek injunctions and impose civil penalties to enforce this
22 chapter.
23 SECTION 25. IC 24-4-21-5, AS ADDED BY P.L.153-2018,
24 SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
25 JULY 1, 2023]: Sec. 5. (a) This section applies after June 30, 2018.
26 (b) A person who distributes low THC hemp extract in violation of
27 this chapter commits a Class B infraction. However, the offense is a
28 Class A infraction if the person has a prior unrelated judgment for a
29 violation of this chapter.
30 (c) These The penalties described in this section are in addition to
31 any:
32 (1) criminal penalties that may be imposed for unlawful
33 possession or distribution of a controlled substance; or
34 (2) civil penalties or injunctive relief imposed by or sought by
35 the cannabis compliance commission.
36 SECTION 26. IC 24-4-22-1, AS AMENDED BY P.L.10-2019,
37 SECTION 106, IS AMENDED TO READ AS FOLLOWS
38 [EFFECTIVE JULY 1, 2023]: Sec. 1. As used in this chapter:
39 (1) "cannabis compliance commission" means the cannabis
40 compliance commission established by IC 7.1-8-2-1; and
41 (2) "low THC hemp extract" has the meaning set forth in
42 IC 35-48-1-17.5.
2023 IN 1065—LS 6657/DI 77 20
1 SECTION 27. IC 24-4-22-4, AS ADDED BY P.L.153-2018,
2 SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3 JULY 1, 2023]: Sec. 4. (a) This section applies after June 30, 2018.
4 (b) A person who violates section 3 of this chapter commits a Class
5 C infraction. However, the violation is a Class B infraction if the
6 person has one (1) prior unrelated judgment for a violation of section
7 3 of this chapter, and a Class A infraction if the person has two (2) or
8 more prior unrelated judgments for a violation of section 3 of this
9 chapter.
10 (c) These The penalties described in this section are in addition to
11 any:
12 (1) criminal penalties that may be imposed for unlawful
13 possession or distribution of a controlled substance; or
14 (2) civil penalties or injunctive relief imposed by or sought by
15 the cannabis compliance commission.
16 SECTION 28. [EFFECTIVE JULY 1, 2023] (a) As used in this
17 SECTION, "cannabis compliance commission" means the cannabis
18 compliance commission established by IC 7.1-8-2-1, as added by
19 this act.
20 (b) On July 1, 2023, all powers, duties, agreements, and
21 liabilities of the state seed commissioner with respect to hemp are
22 transferred to the cannabis compliance commission, as the
23 successor agency.
24 (c) On July 1, 2023, all records and property of the state seed
25 commissioner relating to hemp, including appropriations and other
26 funds under the control or supervision of the state seed
27 commissioner that are designated for the hemp program, are
28 transferred to the cannabis compliance commission, as the
29 successor agency.
30 (d) After June 30, 2023, any amounts owed to the state seed
31 commissioner before July 1, 2023, in connection with hemp are
32 considered to be owed to the cannabis compliance commission, as
33 the successor agency.
34 (e) After June 30, 2023, a reference to the state seed
35 commissioner in a statute, rule, or other document related to hemp
36 is considered a reference to the cannabis compliance commission,
37 as the successor agency.
38 (f) Any rules adopted under IC 15-15-13 by the state seed
39 commissioner before July 1, 2023, concerning hemp are
40 considered, after June 30, 2023, rules of the cannabis compliance
41 commission.
42 (g) Proceedings relating to hemp that are pending before the
2023 IN 1065—LS 6657/DI 77 21
1 state seed commissioner on July 1, 2023, shall be transferred from
2 the state seed commissioner to the cannabis compliance
3 commission and treated as if initiated by the cannabis compliance
4 commission.
5 (h) A license or permit relating to hemp that is issued by the
6 state seed commissioner before July 1, 2023, shall be treated after
7 June 30, 2023, as a license or permit issued by the cannabis
8 compliance commission.
9 (i) This SECTION expires July 1, 2024.
2023 IN 1065—LS 6657/DI 77