Introduced Version SENATE BILL No. 478 _____ DIGEST OF INTRODUCED BILL Citations Affected: IC 7.1-3-18.5; IC 15-15-13; IC 16-42-2-2; IC 24-4; IC 35-31.5-2; IC 35-46-1; IC 35-48-1; IC 35-52-24. Synopsis: Craft hemp flower products. Establishes certain regulatory testing and packaging requirements for the distribution and sale of craft hemp flower products and specifies penalties applicable to the unlawful possession or distribution of craft hemp flower products. Prohibits the possession of craft hemp flower unless it is being used by a licensee to manufacture a legal hemp product, including a craft hemp flower product. Provides that a food is not considered adulterated for containing low THC hemp extract or craft hemp flower. Provides that craft hemp flower product is not included in the definition of "controlled substance analog", "hashish", "low THC hemp extract", or "marijuana". Prohibits the sale of low THC hemp extract to a person less than 21 years of age, if it contains certain elements. Adds craft hemp flower products to a statute imposing an infraction that applies with regard to persons less than 21 years of age involving the sale, distribution, purchase, and possession of craft hemp flower product. Defines terms. Makes conforming changes. Makes technical corrections. Effective: July 1, 2025. Holdman January 16, 2025, read first time and referred to Committee on Commerce and Technology. 2025 IN 478—LS 6068/DI 120 Introduced First Regular Session of the 124th General Assembly (2025) 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 2024 Regular Session of the General Assembly. SENATE BILL No. 478 A BILL FOR AN ACT to amend the Indiana Code concerning trade regulation. Be it enacted by the General Assembly of the State of Indiana: 1 SECTION 1. IC 7.1-3-18.5-5, AS AMENDED BY P.L.49-2020, 2 SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE 3 JULY 1, 2025]: Sec. 5. (a) Subject to subsection (b), the commission 4 may suspend the certificate of a person who fails to pay a civil penalty 5 imposed for violating IC 35-46-1-10, IC 35-46-1-10.2, IC 35-46-1-11, 6 IC 35-46-1-11.2, IC 35-46-1-11.4, IC 35-46-1-11.5, IC 35-46-1-11.7, 7 or IC 35-46-1-11.8. 8 (b) Before enforcing the imposition of a civil penalty or suspending 9 or revoking a certificate under this chapter, the commission shall 10 provide written notice of the alleged violation to the certificate holder 11 and conduct a hearing. The commission shall provide written notice of 12 the civil penalty or suspension or revocation of a certificate to the 13 certificate holder. 14 (c) Subject to subsection (b), the commission shall revoke the 15 certificate of a person upon a finding by a preponderance of the 16 evidence that the person: 17 (1) has violated IC 35-45-5-3, IC 35-45-5-3.5, IC 35-45-5-4, 2025 IN 478—LS 6068/DI 120 2 1 IC 35-46-1-11, IC 35-46-1-11.2, IC 35-46-1-11.4, or 2 IC 35-46-1-11.8; 3 (2) has committed habitual illegal sale of tobacco sales as 4 established under IC 35-46-1-10.2(j); or 5 (3) has committed habitual illegal entrance by a minor as 6 established under IC 35-46-1-11.7(f). 7 SECTION 2. IC 7.1-3-18.5-9, AS AMENDED BY P.L.49-2020, 8 SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE 9 JULY 1, 2025]: Sec. 9. A certificate holder shall exercise due diligence 10 in the supervision and training of the certificate holder's employees or 11 agents in the handling and sale of tobacco products and electronic 12 cigarettes on the holder's retail premises. Proof that employees or 13 agents of the certificate holder, while in the scope of their employment, 14 committed at least six (6) violations relating to IC 35-46-1-10.2(b) 15 IC 35-46-1-10.2(c) in any one (1) year period shall be prima facie 16 evidence of a lack of due diligence by the certificate holder in the 17 supervision and training of the certificate holder's employees or agents. 18 SECTION 3. IC 15-15-13-6.7 IS ADDED TO THE INDIANA 19 CODE AS A NEW SECTION TO READ AS FOLLOWS 20 [EFFECTIVE JULY 1, 2025]: Sec. 6.7. As used in this chapter, 21 "work in progress hemp extract" means a compound: 22 (1) derived from hemp; 23 (2) intended to be processed into a hemp product; 24 (3) in a partially processed state; 25 (4) having a concentration of delta-9 THC that exceeds 26 three-tenths of one percent (0.3%) by dry weight; and 27 (5) not marketed for consumer use or consumption. 28 SECTION 4. IC 15-15-13-11, AS AMENDED BY P.L.190-2019, 29 SECTION 12, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE 30 JULY 1, 2025]: Sec. 11. Only a hemp licensee, the licensee's designee, 31 or the licensee's agents may be permitted to transport hemp or work in 32 progress hemp extract off a production site. When transporting hemp 33 or work in progress hemp extract off the production site, the hemp 34 licensee, designee, or agent shall have in the licensee's, designee's, or 35 agent's possession the licensing documents from the state seed 36 commissioner evidencing that the hemp or work in progress hemp 37 extract is from certified seed produced by a licensed grower. 38 SECTION 5. IC 15-15-13-11.5 IS ADDED TO THE INDIANA 39 CODE AS A NEW SECTION TO READ AS FOLLOWS 40 [EFFECTIVE JULY 1, 2025]: Sec. 11.5. (a) Subject to subsection (b), 41 a handler holding a valid license under this chapter may possess, 42 manufacture, store, transport, or sell work in progress hemp 2025 IN 478—LS 6068/DI 120 3 1 extract. 2 (b) Work in progress hemp extract may be sold only to a: 3 (1) handler holding a valid license under this chapter; or 4 (2) person holding a valid hemp or cannabis license in another 5 jurisdiction. 6 SECTION 6. IC 15-15-13-19, AS ADDED BY P.L.190-2019, 7 SECTION 20, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE 8 JULY 1, 2025]: Sec. 19. (a) Hemp bud (as defined in IC 35-48-1-17.2) 9 and hemp flower (as defined in IC 35-48-1-17.3) Craft hemp flower 10 (as defined by IC 35-31.5-2-68.8) may be transported or sold 11 intrastate only to a processor licensed under this chapter for 12 processing or manufacturing into a legal hemp product, including 13 a craft hemp flower product (as defined by IC 35-31.5-2-68.9). 14 (b) Craft hemp flower may be sold and transported interstate in 15 accordance with section 11 of this chapter. 16 (b) (c) The state seed commissioner may impose a civil penalty 17 under section 13 of this chapter for a violation of subsection (a). 18 SECTION 7. IC 16-42-2-2 IS AMENDED TO READ AS 19 FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 2. (a) A food is 20 considered adulterated under any of the following conditions: 21 (1) If the food bears or contains any poisonous or deleterious 22 substance that may make the food injurious to health. However, 23 if the substance is not an added substance, the food is not to be 24 considered adulterated under this subdivision if the quantity of the 25 substance in the food does not ordinarily make the food injurious 26 to health. 27 (2) If: 28 (A) the food bears or contains any added poison or added 29 deleterious substance (other than a poison or a deleterious 30 substance that is a pesticide chemical in or on a raw 31 agricultural commodity, a food additive, or a color additive) 32 that is unsafe within the meaning of section 5 of this chapter; 33 (B) the food is a raw agricultural commodity and the food 34 bears or contains a pesticide chemical that is unsafe under 35 section 5 of this chapter; or 36 (C) the food is or contains a food additive that is unsafe under 37 section 5 of this chapter. 38 However, when a pesticide chemical is used in or on a raw 39 agricultural commodity in conformity with an exemption granted 40 or tolerance prescribed under section 5 of this chapter and the raw 41 agricultural commodity has been subjected to processing such as 42 canning, cooking, freezing, dehydrating, or milling, the residue of 2025 IN 478—LS 6068/DI 120 4 1 the pesticide chemical remaining in or on the processed food, 2 notwithstanding section 5 of this chapter and clause (C) is not 3 considered unsafe if the residue in or on the raw agricultural 4 commodity has been removed to the extent possible in good 5 manufacturing practice, and the concentration of the residues in 6 the processed food, when ready to eat, is not greater than the 7 tolerance prescribed for the raw agricultural commodity. 8 (3) If the food consists in whole or in part of a diseased, 9 contaminated, filthy, putrid, or decomposed substance or if the 10 food is otherwise unfit for food. 11 (4) If the food has been produced, transported, handled, prepared, 12 packed, or held under unsanitary conditions or in unsanitary 13 containers as the result of which the food may have become 14 contaminated with filth or made diseased, unwholesome, or 15 injurious to health. 16 (5) If the food is, in whole or in part, the product of: 17 (A) a diseased animal; 18 (B) an animal that has died otherwise than by slaughter; or 19 (C) an animal that has been fed upon the uncooked offal from 20 a slaughterhouse. 21 (6) If the food's container is composed in whole or in part of any 22 poisonous or deleterious substance that may make the contents 23 injurious to health. 24 (7) If the food has been intentionally subjected to radiation, unless 25 the use of the radiation was in conformity with a rule or an 26 exemption in effect under section 5 of this chapter. 27 (8) If any valuable constituent has been in whole or in part 28 omitted or abstracted from the food. 29 (9) If any substance has been substituted wholly or in part. 30 (10) If damage or inferiority has been concealed in any manner. 31 (11) If any substance has been added to the food or mixed or 32 packed with the food to: 33 (A) increase the food's bulk or weight; 34 (B) reduce the food's quality or strength; 35 (C) make the food appear better or of greater value than the 36 food is; or 37 (D) create a deceptive appearance. 38 (12) If the food bears or contains a coal-tar color other than one 39 from a batch that has been certified by the federal Food and Drug 40 Administrator, as provided by regulations promulgated under 41 authority of the Federal Act. 42 (13) If the food is a confectionery and has partially or completely 2025 IN 478—LS 6068/DI 120 5 1 imbedded embedded in the food any nonnutritive object. 2 However, this subdivision does not apply in the case of any 3 nonnutritive object if, in the judgment of the state department as 4 provided by rules, the nonnutritive object is of practical, 5 functional value to the confectionery product and would not make 6 the product injurious or hazardous to health. 7 (14) If the food is a confectionery and bears or contains any 8 alcohol other than alcohol not in excess of one-half of one percent 9 (0.5%) by volume derived solely from the use of flavoring 10 extracts. 11 (15) If the food is a confectionery and bears or contains any 12 nonnutritive substance. However, this subdivision does not apply 13 to a safe, nonnutritive substance if: 14 (A) the nonnutritive substance is in or on a confectionery for 15 a practical, functional purpose in the manufacture, packaging, 16 or storing of the confectionery; and 17 (B) the use of the substance does not promote deception of the 18 consumer or otherwise result in adulteration or misbranding in 19 violation of any provision of IC 16-42-1 through IC 16-42-4. 20 In addition, the state department may, for the purpose of 21 avoiding or resolving uncertainty as to the application of this 22 subdivision, adopt rules allowing or prohibiting the use of 23 particular nonnutritive substances. 24 (16) If the food falls below the standard of purity, quality, or 25 strength that the food purports or is represented to possess. 26 (17) If the food is or bears or contains any color additive that is 27 unsafe under section 5 of this chapter. 28 (b) Subsection (a)(8) and (a)(9) do not prohibit: 29 (1) the removal of butterfat from; or 30 (2) the addition of skim milk to; 31 dairy products that comply with the definitions and standards for dairy 32 products adopted by the state department. 33 (c) A food is not considered adulterated for containing low THC 34 hemp extract (as defined in IC 35-48-1-17.5) or craft hemp flower 35 (as defined in IC 35-31.5-2-68.8). 36 SECTION 8. IC 24-4-21-4, AS ADDED BY P.L.153-2018, 37 SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE 38 JULY 1, 2025]: Sec. 4. (a) Except as provided in subsection (b), low 39 THC hemp extract must be distributed in packaging that contains the 40 following information: 41 (1) A scannable bar code or QR code linked to a document that 42 contains information with respect to the manufacture of the low 2025 IN 478—LS 6068/DI 120 6 1 THC hemp extract, including the: 2 (A) batch identification number; 3 (B) product name; 4 (C) batch date; 5 (D) expiration date, which must be not more than two (2) years 6 from the date of manufacture; 7 (E) batch size; 8 (F) total quantity produced; and 9 (G) ingredients used, including the: 10 (i) ingredient name; 11 (ii) name of the company that manufactured the ingredient; 12 (iii) company or product identification number or code, if 13 applicable; and 14 (iv) ingredient lot number; and 15 (H) (G) download link for a certificate of analysis for the low 16 THC hemp extract. 17 (2) The batch number. 18 (3) The Internet address of a web site website to obtain batch 19 information. 20 (4) The expiration date. 21 (5) The number of milligrams of low THC hemp extract. 22 (6) The manufacturer. 23 (7) The fact that the product contains not more than three-tenths 24 of one percent (0.3%) total delta-9-tetrahydrocannabinol (THC), 25 including precursors, by weight. 26 (b) Before July 1, 2018, low THC hemp extract may be distributed 27 in Indiana without having met the requirements described in subsection 28 (a). 29 (b) After June 30, 2025, the packaging of low THC hemp extract 30 may not: 31 (1) contain any statement, artwork, or design that could 32 reasonably mislead any person to believe that the package 33 contains anything other than low THC hemp extract; 34 (2) bear the likeness or contain a cartoon-like characteristic 35 of a real or fictional person, animal, or fruit that appeals to 36 children; or 37 (3) bear an unauthorized trademark, trade name, famous 38 mark, or other identifying mark, imprint, or device, or any 39 likeness thereof. 40 SECTION 9. IC 24-4-22-3, AS ADDED BY P.L.153-2018, 41 SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE 42 JULY 1, 2025]: Sec. 3. (a) Except as provided in subsection (b), A 2025 IN 478—LS 6068/DI 120 7 1 person may sell low THC hemp extract at retail only if the packaging 2 complies with the requirements of IC 24-4-21-4. 3 (b) Before July 1, 2018, a person may sell low THC hemp extract at 4 retail even if the packaging does not comply with the requirements of 5 IC 24-4-21-4. 6 (b) Beginning July 1, 2025, no low THC hemp extract 7 containing: 8 (1) Delta-8 THC; 9 (2) Delta-10 THC; 10 (3) Hexahydrocannabinol (HHC); 11 (4) Tetrahydrocannabinol acetate ester (THCo); 12 (5) Tetrahydrocannabiporol (THCp); or 13 (6) Tetrahydrocannabivarin (THCv); 14 may be distributed, sold, or offered for sale at retail or online to a 15 person who is less than twenty-one (21) years of age. 16 (c) Any website owned, managed, or operated by a person who 17 distributes or sells a product containing: 18 (1) Delta-8 THC; 19 (2) Delta-10 THC; 20 (3) Hexahydrocannabinol (HHC); 21 (4) Tetrahydrocannabinol acetate ester (THCo); 22 (5) Tetrahydrocannabiporol (THCp); or 23 (6) Tetrahydrocannabivarin (THCv); 24 directly to consumers must verify a consumer's age by either using 25 a reliable online age verification service, or by obtaining and 26 examining a copy of a government issued identification, prior to 27 completing a purchase. 28 (d) A person who violates this section is subject to a civil penalty 29 not to exceed the following: 30 (1) One thousand dollars ($1,000) for a first violation. 31 (2) Five thousand dollars ($5,000) for a second violation that 32 occurs within two (2) years after a first violation, and 33 suspension of the retail dealer's certificate for up to six (6) 34 months. 35 (3) Ten thousand dollars ($10,000) for each subsequent 36 violation that occurs within two (2) years of the preceding 37 violation, and revocation of the retail dealer's certificate, with 38 a one (1) year waiting period for reapplication. 39 (e) It is a defense to a violation under this section that the 40 distributor or seller examined the purchaser's or recipient's 41 driver's license, or other valid government issued identification, 42 that positively identified the purchaser or recipient as being at least 2025 IN 478—LS 6068/DI 120 8 1 twenty-one (21) years of age. 2 SECTION 10. IC 24-4-24 IS ADDED TO THE INDIANA CODE 3 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE 4 JULY 1, 2025]: 5 Chapter 24. Distribution of Craft Hemp Flower Products 6 Sec. 1. As used in this chapter, "certificate of analysis" means 7 a certificate from an independent testing laboratory describing the 8 results of the laboratory's testing of a sample. 9 Sec. 2. As used in this chapter, "craft hemp flower product" has 10 the meaning set forth in IC 35-31.5-2-68.9. 11 Sec. 3. As used in this chapter, "independent testing laboratory" 12 means a laboratory: 13 (1) with respect to which no person having a direct or indirect 14 interest in the laboratory also has a direct or indirect interest 15 in a facility that: 16 (A) processes, distributes, or sells a craft hemp flower 17 product, or a substantially similar substance in another 18 jurisdiction; 19 (B) cultivates, processes, distributes, dispenses, or sells 20 marijuana; 21 (C) cultivates, processes, or distributes hemp; or 22 (D) processes, distributes, or sells low THC hemp extract 23 (as defined in IC 35-48-1-17.5); and 24 (2) that is accredited as a testing laboratory under 25 International Organization for Standardization (ISO) 17025 26 by a third party accrediting body such as the American 27 Association for Laboratory Accreditation (A2LA) or Assured 28 Calibration and Laboratory Accreditation Select Services 29 (ACLASS). 30 Sec. 4. As used in this chapter, "tamper evident packaging" 31 means a package having at least one (1) indicator or a barrier to 32 entry that, if breached or missing, can reasonably be expected to 33 provide visible evidence to consumers that tampering has occurred. 34 Sec. 5. (a) Before a person may distribute a craft hemp flower 35 product, the distributor must have a certificate of analysis 36 prepared by an independent testing laboratory showing the 37 following: 38 (1) That the craft hemp flower product is the product of a 39 batch tested by the independent testing laboratory. 40 (2) That the independent testing laboratory determined that 41 the batch contained not more than three-tenths of one percent 42 (0.3%) delta-9-tetrahydrocannabinol (THC), including 2025 IN 478—LS 6068/DI 120 9 1 precursors, by weight, based on the testing of a random 2 sample of the batch. 3 (3) That the batch has been tested for and does not exceed the 4 acceptable levels set forth under section 7 of this chapter for 5 the following contaminants: 6 (A) Heavy metals, including cadmium, lead, arsenic, and 7 mercury. 8 (B) Pesticides. 9 (C) Herbicides. 10 (D) Mycotoxins. 11 (E) Bacterial toxins. 12 (F) Chemical solvent residues. 13 (4) The potency of the craft hemp flower product, including 14 the projected percentage of: 15 (A) THC; 16 (B) cannabidiol; and 17 (C) other cannabinoids in the craft hemp flower product; 18 by weight or volume. 19 (b) Each batch of a craft hemp flower product submitted to an 20 independent testing laboratory under this section must have been 21 harvested at the same time and cultivated in a contiguous area in 22 the same field or facility. 23 Sec. 6. A craft hemp flower product must be distributed in 24 tamper evident packaging that contains the following information: 25 (1) A scannable bar code or QR code linked to a document 26 that contains information with respect to the craft hemp 27 flower product, including the: 28 (A) batch identification number; 29 (B) product name; 30 (C) batch date; 31 (D) expiration date, which must be not more than two (2) 32 years from the date of harvest; 33 (E) batch size; 34 (F) total quantity produced; 35 (G) ingredients used, including the: 36 (i) ingredient name; 37 (ii) name of the company that manufactured the 38 ingredient; 39 (iii) company or product identification number or code, 40 if applicable; and 41 (iv) ingredient lot number; and 42 (H) download link for a certificate of analysis for the craft 2025 IN 478—LS 6068/DI 120 10 1 hemp flower product. 2 (2) The batch identification number. 3 (3) The address of a website to obtain batch information. 4 (4) The expiration date, which must be not more than two (2) 5 years from the date of harvest. 6 (5) The number of grams of craft hemp flower (as defined by 7 IC 35-31.5-2-68.8) contained in the craft hemp flower product. 8 (6) The facility that produced the craft hemp flower product. 9 (7) The fact that the product contains not more than 10 three-tenths of one percent (0.3%) 11 delta-9-tetrahydrocannabinol (THC), including precursors, by 12 weight. 13 Sec. 7. A craft hemp flower product may not be distributed if a 14 certificate of analysis prepared by an independent testing 15 laboratory shows any of the following: 16 (1) A concentration of metals that is more than any of the 17 following: 18 (A) Four-tenths (0.4) part per million of cadmium. 19 (B) Five-tenths (0.5) part per million of lead. 20 (C) Four-tenths (0.4) part per million of arsenic. 21 (D) Two-tenths (0.2) part per million of mercury. 22 (2) A concentration of microbiological units that is more than 23 any of the following: 24 (A) One (1) colony forming unit per gram of Shiga-Toxin 25 Escherichia coli. 26 (B) One (1) colony forming unit per gram of Salmonella 27 spp. 28 (C) Ten thousand (10,000) colony forming units of 29 culturable mold. 30 (3) A concentration of residual solvents and chemicals that is 31 not more than any of the following: 32 (A) Five thousand (5,000) parts per million of butane. 33 (B) Two (2) parts per million of benzene. 34 (C) Five thousand (5,000) parts per million of heptane. 35 (D) Two hundred ninety (290) parts per million of hexane. 36 (E) Eight hundred ninety (890) parts per million of toluene. 37 (F) One (1) part per million of total xylenes, including 38 ortho-xylene, meta-xylene, and para-xylene. 39 Sec. 8. (a) A person in a motor vehicle who, while the motor 40 vehicle is in operation or the motor vehicle is located on the 41 right-of-way of a public highway (as defined in IC 9-25-2-4), 42 knowingly or intentionally possesses a container that contains a 2025 IN 478—LS 6068/DI 120 11 1 craft hemp flower product, and: 2 (1) the container does not have tamper evident packaging; or 3 (2) the tamper evident packaging has a broken seal; 4 commits a Class C misdemeanor. 5 (b) A violation of this section is not considered a moving traffic 6 violation: 7 (1) for purposes of IC 9-14-12-3; and 8 (2) for which points are assessed by the bureau of motor 9 vehicles under the point system. 10 Sec. 9. (a) A person who knowingly or intentionally distributes 11 or sells a craft hemp flower product in violation of this chapter 12 commits a Class B misdemeanor. However, the offense is a Class 13 A misdemeanor if the person has a prior unrelated conviction for 14 a violation of this chapter. 15 (b) The penalties in this section are in addition to any criminal 16 penalties that may be imposed for unlawful possession or 17 distribution of a controlled substance. 18 SECTION 11. IC 35-31.5-2-68.8 IS ADDED TO THE INDIANA 19 CODE AS A NEW SECTION TO READ AS FOLLOWS 20 [EFFECTIVE JULY 1, 2025]: Sec. 68.8. (a) "Craft hemp flower" 21 means the harvested reproductive organ, whether immature or 22 mature, of the female Cannabis sativa L. plant containing not more 23 than three-tenths of one percent (0.3%) 24 delta-9-tetrahydrocannabinol (THC), including precursors of 25 THC, in a form that is intended to allow THC to be introduced into 26 the human body by inhalation of smoke. 27 (b) The term does not include agricultural hemp seed (as defined 28 in IC 15-15-13-2). 29 SECTION 12. IC 35-31.5-2-68.9 IS ADDED TO THE INDIANA 30 CODE AS A NEW SECTION TO READ AS FOLLOWS 31 [EFFECTIVE JULY 1, 2025]: Sec. 68.9. "Craft hemp flower 32 product" means a substance or product for sale to consumers that: 33 (1) is derived from or contains any part of craft hemp flower; 34 and 35 (2) is in the form of: 36 (A) a gummy; 37 (B) an edible; 38 (C) a tincture; or 39 (D) an e-liquid in a tamper evident container. 40 The term does not include smokable hemp. 41 SECTION 13. IC 35-31.5-2-100, AS AMENDED BY P.L.49-2020, 42 SECTION 25, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE 2025 IN 478—LS 6068/DI 120 12 1 JULY 1, 2025]: Sec. 100. (a) "Distribute", for purposes of 2 IC 35-45-4-8, has the meaning set forth in IC 35-45-4-8. 3 (b) "Distribute", for purposes of IC 35-46-1-10, has the meaning set 4 forth in IC 35-46-1-10(f). IC 35-46-1-10(a). 5 (c) "Distribute", for purposes of IC 35-46-1-10.2, has the meaning 6 set forth in IC 35-46-1-10.2(g). IC 35-46-1-10.2(a). 7 (d) "Distribute", for purposes of IC 35-47.5, has the meaning set 8 forth in IC 35-47.5-2-6. 9 (e) "Distribute", for purposes of IC 35-48, has the meaning set forth 10 in IC 35-48-1-14. 11 (f) "Distribute", for purposes of IC 35-49, has the meaning set forth 12 in IC 35-49-1-2. 13 SECTION 14. IC 35-46-1-10, AS AMENDED BY P.L.32-2021, 14 SECTION 97, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE 15 JULY 1, 2025]: Sec. 10. (a) As used in this section, "distribute" 16 means to give tobacco, a craft hemp flower product, an e-liquid, or 17 an electronic cigarette to another person as a means of promoting, 18 advertising, or marketing the tobacco, craft hemp flower product, 19 e-liquid, or electronic cigarette to the general public. 20 (a) (b) A person may not be charged with a violation under this 21 section and a violation under IC 7.1-7-6-5. 22 (b) (c) A person who knowingly: 23 (1) sells or distributes tobacco, a craft hemp flower product, an 24 e-liquid, or an electronic cigarette to a person less than 25 twenty-one (21) years of age; or 26 (2) purchases tobacco, a craft hemp flower product, an e-liquid, 27 or an electronic cigarette for delivery to another person who is 28 less than twenty-one (21) years of age; 29 commits a Class C infraction. For a sale to take place under this 30 section, the buyer must pay the seller for the tobacco, craft hemp 31 flower product, e-liquid, or electronic cigarette. 32 (c) (d) It is not a defense that the person to whom the tobacco, craft 33 hemp flower product, e-liquid, or electronic cigarette was sold or 34 distributed did not smoke, chew, inhale, or otherwise consume the 35 tobacco, craft hemp flower product, e-liquid, or electronic cigarette. 36 (d) (e) The following defenses are available to a person accused of 37 selling or distributing tobacco, a craft hemp flower product, an 38 e-liquid, or an electronic cigarette to a person who is less than 39 twenty-one (21) years of age: 40 (1) The buyer or recipient produced a driver's license bearing the 41 purchaser's or recipient's photograph, showing that the purchaser 42 or recipient was of legal age to make the purchase. 2025 IN 478—LS 6068/DI 120 13 1 (2) The buyer or recipient produced a photographic identification 2 card issued under IC 9-24-16-1, or a similar card issued under the 3 laws of another state or the federal government, showing that the 4 purchaser or recipient was of legal age to make the purchase. 5 (3) The appearance of the purchaser or recipient was such that an 6 ordinary prudent person would believe that the purchaser or 7 recipient was not less than thirty (30) years of age. 8 (e) (f) It is a defense that the accused person sold or delivered the 9 tobacco, craft hemp flower product, e-liquid, or electronic cigarette 10 to a person who acted in the ordinary course of employment or a 11 business concerning tobacco, a craft hemp flower product, an 12 e-liquid, or electronic cigarettes including the following activities: 13 (1) Agriculture. 14 (2) Processing. 15 (3) Transporting. 16 (4) Wholesaling. 17 (5) Retailing. 18 (f) As used in this section, "distribute" means to give tobacco, an 19 e-liquid, or an electronic cigarette to another person as a means of 20 promoting, advertising, or marketing the tobacco, e-liquid, or electronic 21 cigarette to the general public. 22 (g) Unless the person buys or receives tobacco, a craft hemp 23 flower product, an e-liquid, or an electronic cigarette under the 24 direction of a law enforcement officer as part of an enforcement action, 25 a person who sells or distributes tobacco, a craft hemp flower 26 product, an e-liquid, or an electronic cigarette is not liable for a 27 violation of this section unless the person less than twenty-one (21) 28 years of age who bought or received the tobacco, craft hemp flower 29 product, e-liquid, or electronic cigarette is issued a citation or 30 summons under section 10.5 of this chapter. 31 (h) Notwithstanding IC 34-28-5-5(c), civil penalties collected under 32 this section must be deposited in the Richard D. Doyle youth tobacco 33 education and enforcement fund (IC 7.1-6-2-6). 34 SECTION 15. IC 35-46-1-10.2, AS AMENDED BY P.L.32-2021, 35 SECTION 98, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE 36 JULY 1, 2025]: Sec. 10.2. (a) As used in this section, "distribute" 37 means to give tobacco, a craft hemp flower product, an e-liquid, or 38 an electronic cigarette to another person as a means of promoting, 39 advertising, or marketing the tobacco, craft hemp flower product, 40 e-liquid, or electronic cigarette to the general public. 41 (a) (b) A person may not be charged with a violation under this 42 section and a violation under IC 7.1-7-6-5. 2025 IN 478—LS 6068/DI 120 14 1 (b) (c) A retail establishment that sells or distributes tobacco, a 2 craft hemp flower product, an e-liquid, or an electronic cigarette to 3 a person less than twenty-one (21) years of age commits a Class C 4 infraction. For a sale to take place under this section, the buyer must 5 pay the retail establishment for the tobacco, craft hemp flower 6 product, e-liquid, or electronic cigarette. 7 (c) (d) Notwithstanding IC 34-28-5-4(c), a civil judgment for an 8 infraction committed under this section must be imposed as follows: 9 (1) If the retail establishment at that specific business location has 10 not been issued a citation or summons for a violation of this 11 section in the previous one (1) year, a civil penalty of up to four 12 hundred dollars ($400). 13 (2) If the retail establishment at that specific business location has 14 had one (1) citation or summons issued for a violation of this 15 section in the previous one (1) year, a civil penalty of up to eight 16 hundred dollars ($800). 17 (3) If the retail establishment at that specific business location has 18 had two (2) citations or summonses issued for a violation of this 19 section in the previous one (1) year, a civil penalty of up to one 20 thousand four hundred dollars ($1,400). 21 (4) If the retail establishment at that specific business location has 22 had three (3) or more citations or summonses issued for a 23 violation of this section in the previous one (1) year, a civil 24 penalty of up to two thousand dollars ($2,000). 25 A retail establishment may not be issued a citation or summons for a 26 violation of this section more than once every twenty-four (24) hours 27 for each specific business location. 28 (d) (e) It is not a defense that the person to whom the tobacco, craft 29 hemp flower product, e-liquid, or electronic cigarette was sold or 30 distributed did not smoke, chew, inhale, or otherwise consume the 31 tobacco, craft hemp flower product, e-liquid, or electronic cigarette. 32 (e) (f) The following defenses are available to a retail establishment 33 accused of selling or distributing tobacco, a craft hemp flower 34 product, an e-liquid, or an electronic cigarette to a person who is less 35 than twenty-one (21) years of age: 36 (1) The buyer or recipient produced a driver's license bearing the 37 purchaser's or recipient's photograph showing that the purchaser 38 or recipient was of legal age to make the purchase. 39 (2) The buyer or recipient produced a photographic identification 40 card issued under IC 9-24-16-1 or a similar card issued under the 41 laws of another state or the federal government showing that the 42 purchaser or recipient was of legal age to make the purchase. 2025 IN 478—LS 6068/DI 120 15 1 (3) The appearance of the purchaser or recipient was such that an 2 ordinary prudent person would believe that the purchaser or 3 recipient was not less than thirty (30) years of age. 4 (f) (g) It is a defense that the accused retail establishment sold or 5 delivered the tobacco, craft hemp flower product, e-liquid, or 6 electronic cigarette to a person who acted in the ordinary course of 7 employment or a business concerning tobacco, a craft hemp flower 8 product, an e-liquid, or electronic cigarettes for the following 9 activities: 10 (1) Agriculture. 11 (2) Processing. 12 (3) Transporting. 13 (4) Wholesaling. 14 (5) Retailing. 15 (g) As used in this section, "distribute" means to give tobacco, an 16 e-liquid, or an electronic cigarette to another person as a means of 17 promoting, advertising, or marketing the tobacco or electronic cigarette 18 to the general public. 19 (h) Unless a person buys or receives tobacco, a craft hemp flower 20 product, an e-liquid, or an electronic cigarette under the direction of 21 a law enforcement officer as part of an enforcement action, a retail 22 establishment that sells or distributes tobacco, a craft hemp flower 23 product, an e-liquid, or an electronic cigarette is not liable for a 24 violation of this section unless the person less than twenty-one (21) 25 years of age who bought or received the tobacco, craft hemp flower 26 product, e-liquid, or electronic cigarette is issued a citation or 27 summons under section 10.5 of this chapter. 28 (i) Notwithstanding IC 34-28-5-5(c), civil penalties collected under 29 this section must be deposited in the Richard D. Doyle youth tobacco 30 education and enforcement fund (IC 7.1-6-2-6). 31 (j) A person who violates subsection (b) (c) at least six (6) times in 32 any one (1) year commits habitual illegal sale of tobacco, sales, a Class 33 B infraction. 34 SECTION 16. IC 35-46-1-10.5, AS AMENDED BY P.L.49-2020, 35 SECTION 32, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE 36 JULY 1, 2025]: Sec. 10.5. (a) A person less than twenty-one (21) years 37 of age who: 38 (1) purchases tobacco, a craft hemp flower product, an e-liquid, 39 or an electronic cigarette; 40 (2) accepts tobacco, a craft hemp flower product, an e-liquid, 41 or an electronic cigarette for personal use; or 42 (3) possesses tobacco, a craft hemp flower product, an e-liquid, 2025 IN 478—LS 6068/DI 120 16 1 or an electronic cigarette on the person's person; 2 commits a Class C infraction. 3 (b) It is a defense under subsection (a) that the accused person acted 4 in the ordinary course of employment in a business concerning tobacco, 5 a craft hemp flower product, an e-liquid, or an electronic cigarette for 6 the following activities: 7 (1) Agriculture. 8 (2) Processing. 9 (3) Transporting. 10 (4) Wholesaling. 11 (5) Retailing. 12 SECTION 17. IC 35-48-1-9, AS AMENDED BY P.L.153-2018, 13 SECTION 17, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE 14 JULY 1, 2025]: Sec. 9. "Controlled substance" means a drug, 15 substance, or immediate precursor in schedule I, II, III, IV, or V under: 16 (1) IC 35-48-2-4, IC 35-48-2-6, IC 35-48-2-8, IC 35-48-2-10, or 17 IC 35-48-2-12, if IC 35-48-2-14 does not apply; or 18 (2) a rule adopted by the board, if IC 35-48-2-14 applies. 19 The term does not include low THC hemp extract or a craft hemp 20 flower product. 21 SECTION 18. IC 35-48-1-9.3, AS AMENDED BY P.L.80-2019, 22 SECTION 18, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE 23 JULY 1, 2025]: Sec. 9.3. (a) "Controlled substance analog" means a 24 substance that, due to its chemical structure and potential for abuse or 25 misuse, meets the following criteria: 26 (1) The substance is substantially similar to a controlled substance 27 classified under IC 35-48-2. 28 (2) The substance has a narcotic, stimulant, depressant, or 29 hallucinogenic effect on the central nervous system or is 30 represented or intended to have a narcotic, stimulant, depressant, 31 or hallucinogenic effect on the central nervous system 32 substantially similar to or greater than that of a controlled 33 substance classified under IC 35-48-2. 34 (b) The definition set forth in subsection (a) does not include: 35 (1) a controlled substance; 36 (2) a legend drug; 37 (3) a substance for which there is an approved new drug 38 application; 39 (4) any compound, mixture, or preparation that contains any 40 controlled substance, that is not for administration to a human 41 being or an animal, and that is packaged in a form or 42 concentration, or with adulterants or denaturants, such that as 2025 IN 478—LS 6068/DI 120 17 1 packaged it does not present any significant potential for abuse; 2 or 3 (5) a substance to which an investigational exemption applies 4 under Section 505 of the federal Food, Drug and Cosmetic Act 5 (chapter 675, 52 Stat. 1052 (21 U.S.C. 355)), but only to the 6 extent that conduct with respect to the substance is pursuant to the 7 exemption; or 8 (6) low THC hemp extract; or 9 (7) a craft hemp flower product. 10 (c) For purposes of subsection (a), "substantially similar", as it 11 applies to the chemical structure of a substance, means that the 12 chemical structure of the substance, when compared to the structure of 13 a controlled substance, has a single difference in the structural formula 14 that substitutes one (1) atom or functional group for another, including: 15 (1) one (1) halogen for another halogen; 16 (2) one (1) hydrogen for a halogen; 17 (3) one (1) halogen for a hydrogen; or 18 (4) an alkyl group added or deleted: 19 (A) as a side chain to or from a molecule; or 20 (B) from a side chain of a molecule. 21 SECTION 19. IC 35-48-1-10.5 IS ADDED TO THE INDIANA 22 CODE AS A NEW SECTION TO READ AS FOLLOWS 23 [EFFECTIVE JULY 1, 2025]: Sec. 10.5. "Craft hemp flower 24 product" has the meaning set forth in IC 35-31.5-2-68.9. 25 SECTION 20. IC 35-48-1-16.8, AS ADDED BY P.L.153-2018, 26 SECTION 19, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE 27 JULY 1, 2025]: Sec. 16.8. "Hashish" does not include: 28 (1) low THC hemp extract; or 29 (2) a craft hemp flower product. 30 SECTION 21. IC 35-48-1-17.2 IS REPEALED [EFFECTIVE JULY 31 1, 2025]. Sec. 17.2. (a) "Hemp bud" means the harvested immature 32 reproductive organ of the female hemp plant. 33 (b) The term does not include agricultural hemp seed. 34 SECTION 22. IC 35-48-1-17.3 IS REPEALED [EFFECTIVE JULY 35 1, 2025]. Sec. 17.3. (a) "Hemp flower" means the harvested 36 reproductive organ, whether immature or mature, of the female hemp 37 plant. 38 (b) The term does not include agricultural hemp seed. 39 SECTION 23. IC 35-48-1-17.5, AS AMENDED BY P.L.190-2019, 40 SECTION 28, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE 41 JULY 1, 2025]: Sec. 17.5. (a) "Low THC hemp extract" means a 42 substance or compound that: 2025 IN 478—LS 6068/DI 120 18 1 (1) is derived from or contains any part of the plant Cannabis 2 sativa L. that meets the definition of hemp under IC 15-15-13-6; 3 (2) contains not more than three-tenths of one percent (0.3%) 4 total delta-9-tetrahydrocannabinol (THC), including precursors, 5 by weight; and 6 (3) contains no other controlled substances. 7 (b) The term does not include: 8 (1) the harvested reproductive organ, whether immature or 9 mature, of the female hemp plant; or 10 (2) smokable hemp. a craft hemp flower product; or 11 (3) smokable hemp. 12 SECTION 24. 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, 2025]: 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. a craft hemp flower product; or 31 (9) smokable hemp. 32 SECTION 25. IC 35-48-1-26.6, AS ADDED BY P.L.190-2019, 33 SECTION 30, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE 34 JULY 1, 2025]: Sec. 26.6. (a) Except as provided in subsection (b), 35 "smokable hemp" means a product plant or a part of a plant 36 containing not more than three-tenths of one percent (0.3%) 37 delta-9-tetrahydrocannabinol (THC), including precursors and 38 derivatives of THC, in a form that allows THC to be introduced into the 39 human body by inhalation of smoke. Except as provided in subsection 40 (b), the term includes craft hemp flower. 41 (1) hemp bud; and 42 (2) hemp flower. 2025 IN 478—LS 6068/DI 120 19 1 (b) The term does not include a craft hemp flower product (as 2 defined by IC 35-31.5-2-68.9), or: 3 (1) a hemp plant that is; or 4 (2) parts of a hemp plant that are; or 5 (3) craft hemp flower that is; 6 grown or handled by a licensee for processing or manufacturing into a 7 legal hemp product, including a craft hemp flower product. 8 SECTION 26. IC 35-52-24-20.3 IS ADDED TO THE INDIANA 9 CODE AS A NEW SECTION TO READ AS FOLLOWS 10 [EFFECTIVE JULY 1, 2025]: Sec. 20.3. IC 24-4-24-8 defines a crime 11 concerning possession of craft hemp flower products. 12 SECTION 27. IC 35-52-24-20.4 IS ADDED TO THE INDIANA 13 CODE AS A NEW SECTION TO READ AS FOLLOWS 14 [EFFECTIVE JULY 1, 2025]: Sec. 20.4. IC 24-4-24-9 defines a crime 15 concerning distribution or sale of craft hemp flower products. 2025 IN 478—LS 6068/DI 120