Indiana Senate Bill SB0478 Comm Sub / Bill

                    *SB0478.1*
February 7, 2025
SENATE BILL No. 478
_____
DIGEST OF SB 478 (Updated February 6, 2025 12:44 pm - DI 107)
Citations Affected:  IC 7.1-2; IC 7.1-3; IC 7.1-8; IC 15-15; IC 16-42;
IC 24-4; IC 35-31.5; IC 35-46; IC 35-48; IC 35-52.
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.
Establishes a regulatory framework for craft hemp. Defines terms.
Makes conforming changes. Makes technical corrections.
Effective:  July 1, 2025.
Holdman, Garten, Baldwin, Bassler,
Walker K, Pol Jr., Clark, Donato,
Hunley, Ford J.D., Doriot
January 16, 2025, read first time and referred to Committee on Commerce and Technology.
February 6, 2025, amended, reported favorably — Do Pass; reassigned to Committee on
Tax and Fiscal Policy.
SB 478—LS 6068/DI 120  February 7, 2025
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 7.1-2-3-33, AS AMENDED BY P.L.49-2020,
2 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3 JULY 1, 2025]: Sec. 33. The commission is authorized to:
4 (1) investigate a violation of; and
5 (2) enforce a penalty for a violation of;
6 IC 35-46-1-10, IC 35-46-1-10.2, IC 35-46-1-11, IC 35-46-1-11.2,
7 IC 35-46-1-11.4, IC 35-46-1-11.5, IC 35-46-1-11.7, or IC 35-46-1-11.8,
8 or IC 7.1-8.
9 SECTION 2. IC 7.1-2-4-1 IS AMENDED TO READ AS
10 FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 1. Local Boards
11 Created. There is hereby created in each county a local board to be
12 known as the "Alcoholic Beverage and Craft Hemp Board of
13 __________ County.
14 SECTION 3. IC 7.1-2-4-3, AS AMENDED BY P.L.285-2019,
15 SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
16 JULY 1, 2025]: Sec. 3. (a) The designated member of a local board
17 shall meet the following requirements:
SB 478—LS 6068/DI 120 2
1 (1) The person must be an Indiana resident.
2 (2) The person must be familiar with Indiana alcoholic beverage
3 law and laws concerning craft hemp.
4 (3) The person may not have a conviction within ten (10) years
5 before the date of appointment of:
6 (A) a federal crime having a sentence of at least one (1) year;
7 (B) an Indiana Class A, Class B, or Class C felony (for a crime
8 committed before July 1, 2014) or a Level 1, Level 2, Level 3,
9 Level 4, or Level 5 felony (for a crime committed after June
10 30, 2014); or
11 (C) a crime in a state other than Indiana having a penalty equal
12 to the penalty for an Indiana Class A, Class B, or Class C
13 felony (for a crime committed before July 1, 2014) or a Level
14 1, Level 2, Level 3, Level 4, or Level 5 felony (for a crime
15 committed after June 30, 2014).
16 However, this subdivision does not apply to a conviction that has
17 been expunged under IC 35-38-9.
18 (b) The designated member may be an officer or employee of the
19 commission.
20 SECTION 4. IC 7.1-2-4-13.5, AS ADDED BY P.L.94-2008,
21 SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
22 JULY 1, 2025]: Sec. 13.5. (a) This section does not apply to a
23 designated member of the local board who is an employee or officer of
24 the commission.
25 (b) A local board member shall complete a training program
26 conducted by the commission. A local board member may not be
27 required to take a test or an examination or pay a fee in order to
28 complete the training program.
29 (c) The training program must include training on all the following
30 subjects:
31 (1) An overview of Indiana craft hemp laws, alcoholic beverage
32 law, and enforcement.
33 (2) Duties and responsibilities of the board concerning new
34 permit applications, permit transfers, and renewal of existing
35 permits.
36 (3) The open door law (IC 5-14-1.5) and the public records law
37 (IC 5-14-3).
38 (4) Notice and hearing requirements.
39 (5) The process for appeal of an adverse decision of the board.
40 (6) Any other subject determined by the commission.
41 (d) A local board member must complete the training program not
42 more than one hundred eighty (180) days after the member is appointed
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1 to the board. A local board member who does not complete the training
2 program within the time allowed by this subsection shall be removed
3 from the board under section 21 of this chapter.
4 SECTION 5. IC 7.1-3-18.5-5, AS AMENDED BY P.L.49-2020,
5 SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
6 JULY 1, 2025]: Sec. 5. (a) Subject to subsection (b), the commission
7 may suspend the certificate of a person who fails to pay a civil penalty
8 imposed for violating IC 35-46-1-10, IC 35-46-1-10.2, IC 35-46-1-11,
9 IC 35-46-1-11.2, IC 35-46-1-11.4, IC 35-46-1-11.5, IC 35-46-1-11.7,
10 or IC 35-46-1-11.8.
11 (b) Before enforcing the imposition of a civil penalty or suspending
12 or revoking a certificate under this chapter, the commission shall
13 provide written notice of the alleged violation to the certificate holder
14 and conduct a hearing. The commission shall provide written notice of
15 the civil penalty or suspension or revocation of a certificate to the
16 certificate holder.
17 (c) Subject to subsection (b), the commission shall revoke the
18 certificate of a person upon a finding by a preponderance of the
19 evidence that the person:
20 (1) has violated IC 35-45-5-3, IC 35-45-5-3.5, IC 35-45-5-4,
21 IC 35-46-1-11, IC 35-46-1-11.2, IC 35-46-1-11.4, or
22 IC 35-46-1-11.8;
23 (2) has committed habitual illegal sale of tobacco sales as
24 established under IC 35-46-1-10.2(j); or
25 (3) has committed habitual illegal entrance by a minor as
26 established under IC 35-46-1-11.7(f).
27 SECTION 6. IC 7.1-3-18.5-9, AS AMENDED BY P.L.49-2020,
28 SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
29 JULY 1, 2025]: Sec. 9. A certificate holder shall exercise due diligence
30 in the supervision and training of the certificate holder's employees or
31 agents in the handling and sale of tobacco products and electronic
32 cigarettes on the holder's retail premises. Proof that employees or
33 agents of the certificate holder, while in the scope of their employment,
34 committed at least six (6) violations relating to IC 35-46-1-10.2(b)
35 IC 35-46-1-10.2(c) in any one (1) year period shall be prima facie
36 evidence of a lack of due diligence by the certificate holder in the
37 supervision and training of the certificate holder's employees or agents.
38 SECTION 7. IC 7.1-8 IS ADDED TO THE INDIANA CODE AS A
39 NEW ARTICLE TO READ AS FOLLOWS [EFFECTIVE JULY 1,
40 2025]:
41 ARTICLE 8. CRAFT HEMP FLOWER
42 Chapter. 0.5. Application
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1 Sec. 1. Notwithstanding any other law, a retailer, distributor, or
2 manufacturer who was in operation before July 1, 2025, may
3 continue to operate without a permit issued under this article until
4 December 31, 2025, if the retailer, distributor, or manufacturer
5 complies with the other requirements of this article.
6 Chapter 1. Definitions
7 Sec. 1. As used in this article, "craft hemp" means craft hemp
8 flower product or craft hemp flower.
9 Sec. 2. As used in this article, "craft hemp flower" has the
10 meaning set forth in IC 35-31.5-2-68.8.
11 Sec. 3. As used in this article, "craft hemp flower product" has
12 the meaning set forth in IC 35-31.5-2-68.9.
13 Chapter 2. Craft Hemp Retail Permits
14 Sec. 1. (a) A person may not sell or otherwise distribute in
15 exchange for consideration craft hemp at retail without a valid
16 craft hemp permit issued by the commission.
17 (b) A permit may be issued only to a person who owns or
18 operates premises consisting of a permanent building or structure
19 where the craft hemp is sold or distributed.
20 (c) A retail permit holder may only purchase craft hemp from
21 a manufacturer or distributor that holds the appropriate permits.
22 Sec. 2. (a) A person who desires a permit must provide the
23 following to the commission:
24 (1) The applicant's name and mailing address and the address
25 of the premises for which the permit is being issued.
26 (2) A fee of one thousand dollars ($1,000) for each retail
27 location.
28 (3) The name under which the applicant transacts or intends
29 to transact business.
30 (4) The address of the applicant's principal place of business
31 or headquarters, if any.
32 (5) The statement required under section 4 of this chapter.
33 (6) If the applicant is applying for a new permit under section
34 6 of this chapter, a copy of each of the following:
35 (A) If the new ownership of the business is a business
36 entity, the articles of incorporation, articles of
37 organization, or any other formation documents of the
38 business entity.
39 (B) If the new ownership of the business is an individual,
40 either:
41 (i) the sales or purchase agreement; or
42 (ii) an affidavit signed by the applicant concerning the
SB 478—LS 6068/DI 120 5
1 sale or purchase, on a form prescribed by the
2 commission, that includes the name and address of the
3 seller and purchaser.
4 (C) The permit held by the previous ownership of the
5 business.
6 (b) A separate permit is required for each location where the
7 craft hemp products or craft hemp flower are sold or distributed.
8 A retail establishment may not hold more than one (1) active craft
9 hemp retail permit for a retail location at any time.
10 (c) A permit holder shall conspicuously display the holder's
11 permit on the holder's premises where the craft hemp is sold or
12 distributed.
13 (d) Any intentional misstatement or suppression of a material
14 fact in an application filed under this section constitutes grounds
15 for denial of the permit.
16 (e) A permit may be issued only to a person who meets the
17 following requirements:
18 (1) If the person is an individual, the person must be at least
19 twenty-one (21) years of age.
20 (2) The person must be authorized to do business in Indiana.
21 (3) The person has not had an interest in a permit revoked by
22 the commission for that business location within the preceding
23 one (1) year.
24 (f) The fees collected under this section shall be deposited in the
25 enforcement and administration fund under IC 7.1-4-10.
26 Sec. 3. (a) Subject to available resources, the commission shall
27 not issue a craft hemp retail permit, except as otherwise authorized
28 in this title and subject to the other restrictions contained in this
29 title, to the following persons:
30 (1) A person who does not have lawful status (as defined in
31 IC 9-13-2-92.3).
32 (2) A person who has been convicted within five (5) years
33 before the date of application of:
34 (A) a federal crime having a sentence of at least one (1)
35 year;
36 (B) a Level 1, Level 2, Level 3, Level 4, or Level 5 felony;
37 or
38 (C) a crime in a state other than Indiana having a penalty
39 equal to the penalty for an Indiana Level 1, Level 2, Level
40 3, Level 4, or Level 5 felony.
41 However, this subdivision does not apply to a conviction that
42 has been expunged under IC 35-38-9.
SB 478—LS 6068/DI 120 6
1 (3) A person who does not meet at least one (1) of the
2 following descriptions:
3 (A) The person owns the premises to which the permit will
4 be applicable.
5 (B) The person has a valid lease on the premises:
6 (i) at the time of the application for a permit; and
7 (ii) for the duration of the period in which the person
8 sells or distributes in the manner described in section 1
9 of this chapter.
10 (C) The person has a franchise agreement with a
11 franchisor:
12 (i) that owns the premises to which the permit will be
13 applicable; or
14 (ii) that has a bona fide lease on the premises for the full
15 period for which the permit is to be issued.
16 (4) A person whose place of business is conducted by a
17 manager or agent, unless the manager or agent possesses the
18 same qualifications required for the issuance of a craft hemp
19 retail permit to the person.
20 (5) A minor.
21 (6) A person non compos mentis.
22 (7) A person who has held a permit or permit under this title
23 and who has had that permit or permit revoked within one (1)
24 year prior to the date of application for a craft hemp retail
25 permit.
26 (8) A person who has made an application for a permit or
27 permit of any type under this title which has been denied less
28 than one (1) year prior to the person's application for a craft
29 hemp retail permit unless the first application was denied by
30 reason of a procedural or technical defect.
31 (b) Subsection (a)(5) does not prevent a minor from being a
32 stockholder in a corporation.
33 Sec. 4. An application for a craft hemp permit must contain the
34 express statement of the applicant that the applicant consents for
35 the duration of the permit term (if the commission issues the
36 permit to the applicant) to the entrance, inspection, and search by
37 an enforcement officer, without a warrant or other process, of the
38 applicant's retail premises to determine whether the applicant is
39 complying with the provisions of this title. The consent required by
40 this section is renewed and continued by the retention of a permit
41 or the permit's use by the applicant or the applicant's agents.
42 Sec. 5. (a) A permit issued by the commission under this chapter
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1 must contain the following information:
2 (1) The permit number.
3 (2) The permit holder's name.
4 (3) The permanent location of the business for which the
5 permit is issued.
6 (4) The expiration date of the permit.
7 (b) A permit is:
8 (1) valid for one (1) year after the date of issuance, unless the
9 commission suspends the permit; and
10 (2) nontransferable.
11 (c) A permit may be renewed. The fee for renewing a permit is
12 one thousand dollars ($1,000) for each retail location.
13 Sec. 6. If the majority of the ownership of a business that is a
14 permit holder is sold or transferred:
15 (1) the new ownership of the business must apply for a new
16 permit under section 2 of this chapter; and
17 (2) the permit and the permit number held by the previous
18 ownership of the business are void ninety (90) days after the
19 date of the sale or transfer of the ownership of the business.
20 Sec. 7. The commission may adopt rules under IC 4-22-2 to
21 establish procedures for the issuance, renewal, and reinstatement
22 of a permit.
23 Sec. 8. (a) Subject to subsection (b), the commission may
24 suspend the permit of a person who fails to pay a civil penalty
25 imposed by the commission.
26 (b) Before enforcing the imposition of a civil penalty or
27 suspending or revoking a permit under this chapter, the
28 commission shall provide written notice of the alleged violation to
29 the permit holder and conduct a hearing. The commission shall
30 provide written notice of the civil penalty or suspension or
31 revocation of a permit to the permit holder.
32 (c) Subject to subsection (b), the commission shall revoke the
33 permit of a person upon a finding by a preponderance of the
34 evidence that the person:
35 (1) has violated IC 35-45-5-3, IC 35-45-5-3.5, IC 35-45-5-4,
36 IC 35-46-1-11, IC 35-46-1-11.2, IC 35-46-1-11.4, or
37 IC 35-46-1-11.8;
38 (2) has committed habitual illegal sale of craft hemp as
39 established under IC 35-46-1-10.2(j); or
40 (3) has committed habitual illegal entrance by a minor as
41 established under IC 35-46-1-11.7(f).
42 Sec. 9. (a) If a permit has:
SB 478—LS 6068/DI 120 8
1 (1) expired; or
2 (2) been suspended;
3 the commission may not reinstate or renew the permit until all civil
4 penalties imposed against the permit holder for violating
5 IC 35-46-1-10, IC 35-46-1-10.2, IC 35-46-1-11, IC 35-46-1-11.2,
6 IC 35-46-1-11.4, IC 35-46-1-11.5, IC 35-46-1-11.7, or
7 IC 35-46-1-11.8 have been paid.
8 (b) The failure to pay a civil penalty described in subsection (a)
9 is a Class B infraction.
10 (c) If a permit has been revoked, the commission may not
11 reinstate or renew the permit for at least one hundred eighty (180)
12 days after the date of revocation. The commission may reinstate or
13 renew the permit only upon a reasonable showing by the applicant
14 that the applicant shall:
15 (1) exercise due diligence in the sale of craft hemp on the
16 applicant's premises where the craft hemp is sold or
17 distributed; and
18 (2) properly supervise and train the applicant's employees or
19 agents in the handling and sale of craft hemp.
20 If a permit is reinstated or renewed, the applicant of the permit
21 shall pay an application fee of one thousand dollars ($1,000).
22 Sec. 10. A person who is required to have a permit under this
23 chapter and who sells or distributes craft hemp without a valid
24 permit commits a Class A infraction. Each violation of this section
25 constitutes a separate offense.
26 Sec. 11. The commission may mitigate civil penalties imposed
27 against a permit holder for violating IC 35-46-1-10,
28 IC 35-46-1-10.2, IC 35-46-1-11, IC 35-46-1-11.2, IC 35-46-1-11.4,
29 IC 35-46-1-11.5, IC 35-46-1-11.7, IC 35-46-1-11.8, or any of the
30 provisions of this chapter if a permit holder provides a training
31 program for the permit holder's employees that includes at least
32 the following topics:
33 (1) Laws governing the sale of craft hemp products and craft
34 hemp flower.
35 (2) Methods of recognizing and handling customers who are
36 less than twenty-one (21) years of age.
37 (3) Procedures for proper examination of identification cards
38 to verify that customers are under twenty-one (21) years of
39 age.
40 Sec. 12. A permit holder shall exercise due diligence in the
41 supervision and training of the permit holder's employees or agents
42 in the handling and sale of craft hemp products and craft hemp
SB 478—LS 6068/DI 120 9
1 flower on the holder's retail premises.
2 Sec. 13. (a) An employee of a permit holder must hold a valid:
3 (1) driver's license issued by the state of Indiana or another
4 state; or
5 (2) identification card issued by the state of Indiana, another
6 state, or the United States;
7 to sell craft hemp products.
8 (b) An employee must have the employee's driver's license or
9 identification card or a copy of the employee's driver's license or
10 identification card:
11 (1) either:
12 (A) in the employee's possession; or
13 (B) on file with the employee's employer; and
14 (2) upon request, readily available to show to an excise officer
15 or law enforcement;
16 when selling craft hemp products.
17 (c) If an employee holds a valid license or identification card as
18 described in subsection (a) but is unable to show the license,
19 identification card, or a copy to an excise officer under subsection
20 (b) because:
21 (1) the employee has left the license, identification card, or
22 copy in another location; or
23 (2) the license, identification card, or copy has otherwise been
24 lost or mislaid;
25 the employee may, within five (5) days of the employee's inability
26 to show the license, identification card, or copy to the excise officer,
27 produce to the excise officer or to the office of the commission
28 satisfactory evidence of a license or identification card issued to the
29 individual that was valid at the time the individual was unable to
30 show the license, identification card, or copy.
31 (d) If an employee who is unable to show a license, identification
32 card, or copy to an excise officer fails to produce satisfactory
33 evidence within five (5) days in the manner described in subsection
34 (c), the commission may impose a civil penalty on the permit
35 holder.
36 Sec. 14. (a) If a permit holder fails to attend or participate in a
37 hearing without good cause, the hearing judge may recommend to
38 the commission that the commission suspend or revoke the permit
39 holder's permit or impose a fine on the permit holder of up to one
40 thousand dollars ($1,000).
41 (b) A hearing judge may grant a continuance of a hearing upon
42 written motion showing good cause for the continuance.
SB 478—LS 6068/DI 120 10
1 Sec. 15. If a permit holder sells or distributes craft hemp at a
2 location:
3 (1) determined to be a public nuisance; or
4 (2) at which conduct or acts that are crimes or infractions
5 under IC 35 occur;
6 the commission may impose sanctions against the permit holder.
7 Sec. 16. This section applies to a person holding a tobacco sales
8 certificate. A person holding a tobacco sales certificate may not be
9 issued a craft hemp retail permit if the person has received a
10 violation within the previous three (3) years for any of the
11 following:
12 (1) Violating 7.1-3-18.5-11 (public nuisance).
13 (2) Selling tobacco person less than twenty one (21) years of
14 age (IC 35-46-1-10.2).
15 (3) Allowing a minor to enter a licensed premise (IC
16 35-46-1-11.7).
17 (4) Selling e-liquid containing vitamin E acetate
18 (35-46-1-11.9).
19 (5) Dealing in paraphernalia (35-48-4-8.5).
20 Chapter 3. Craft Hemp Distributor Permits
21 Sec. 1. (a) A person may not distribute craft hemp to a retailer
22 or a manufacturer without a valid craft hemp distributor permit
23 issued by the commission.
24 (b) A permit may be issued only to a person who owns or
25 operates premises consisting of a permanent building or structure
26 from which the craft hemp is distributed.
27 Sec. 2. (a) A person who desires a permit must provide the
28 following to the commission:
29 (1) The applicant's name and mailing address and the address
30 of the premises for which the permit is being issued.
31 (2) A fee of five thousand dollars ($5,000).
32 (3) The name under which the applicant transacts or intends
33 to transact business.
34 (4) The address of the applicant's principal place of business
35 or headquarters, if any.
36 (5) The statement required under section 4 of this chapter.
37 (6) If the applicant is applying for a new permit under section
38 6 of this chapter, a copy of each of the following:
39 (A) If the new ownership of the business is a business
40 entity, the articles of incorporation, articles of
41 organization, or any other formation documents of the
42 business entity.
SB 478—LS 6068/DI 120 11
1 (B) If the new ownership of the business is an individual,
2 either:
3 (i) the sales or purchase agreement; or
4 (ii) an affidavit signed by the applicant concerning the
5 sale or purchase, on a form prescribed by the
6 commission, that includes the name and address of the
7 seller and purchaser.
8 (C) The permit held by the previous ownership of the
9 business.
10 (b) A separate permit is required for each location from which
11 the craft hemp is distributed.
12 (c) A permit holder shall conspicuously display the holder's
13 permit on the holder's premises where the craft hemp is
14 distributed, and in any vehicle used for the transportation of craft
15 hemp.
16 (d) Any intentional misstatement or suppression of a material
17 fact in an application filed under this section constitutes grounds
18 for denial of the permit.
19 (e) A permit may be issued only to a person who meets the
20 following requirements:
21 (1) If the person is an individual, the person must be at least
22 twenty-one (21) years of age.
23 (2) The person must be authorized to do business in Indiana.
24 (3) The person has not had an interest in a permit revoked by
25 the commission for that business location within the preceding
26 one (1) year.
27 (f) The fees collected under this section shall be deposited in the
28 enforcement and administration fund under IC 7.1-4-10.
29 Sec. 3. (a) Subject to available resources, the commission shall
30 not issue a craft hemp distributer permit, except as otherwise
31 authorized in this title and subject to the other restrictions
32 contained in this title, to the following persons:
33 (1) A person who does not have lawful status (as defined in
34 IC 9-13-2-92.3).
35 (2) A person who has been convicted within five (5) years
36 before the date of application of:
37 (A) a federal crime having a sentence of at least one (1)
38 year;
39 (B) a Level 1, Level 2, Level 3, Level 4, or Level 5 felony;
40 or
41 (C) a crime in a state other than Indiana having a penalty
42 equal to the penalty for an Indiana Level 1, Level 2, Level
SB 478—LS 6068/DI 120 12
1 3, Level 4, or Level 5 felony.
2 However, this subdivision does not apply to a conviction that
3 has been expunged under IC 35-38-9.
4 (3) A person who does not meet at least one (1) of the
5 following descriptions:
6 (A) The person owns the premises to which the permit will
7 be applicable.
8 (B) The person has a valid lease on the premises:
9 (i) at the time of the application for a permit; and
10 (ii) for the duration of the period in which the person
11 sells or distributes in the manner described in section 1
12 of this chapter.
13 (C) The person has a franchise agreement with a
14 franchisor:
15 (i) that owns the premises to which the permit will be
16 applicable; or
17 (ii) that has a bona fide lease on the premises for the full
18 period for which the permit is to be issued.
19 (4) A person whose place of business is conducted by a
20 manager or agent, unless the manager or agent possesses the
21 same qualifications required for the issuance of a craft hemp
22 distributor permit to the person.
23 (5) A minor.
24 (6) A person non compos mentis.
25 (7) A person who has held a permit or permit under this title
26 and who has had that permit or permit revoked within one (1)
27 year prior to the date of application for a craft hemp permit.
28 (8) A person who has made an application for a permit or
29 permit of any type under this title which has been denied less
30 than one (1) year prior to the person's application for a craft
31 hemp distributor permit unless the first application was
32 denied by reason of a procedural or technical defect.
33 (b) Subsection (a)(5) does not prevent a minor from being a
34 stockholder in a corporation.
35 Sec. 4. An application for a craft hemp permit must contain the
36 express statement of the applicant that the applicant consents for
37 the duration of the permit term (if the commission issues the
38 permit to the applicant) to the entrance, inspection, and search by
39 an enforcement officer, without a warrant or other process, of the
40 applicant's premises to determine whether the applicant is
41 complying with the provisions of this title. The consent required by
42 this section is renewed and continued by the retention of a permit
SB 478—LS 6068/DI 120 13
1 or the permit's use by the applicant or the applicant's agents.
2 Sec. 5. (a) A permit issued by the commission under this chapter
3 must contain the following information:
4 (1) The permit number.
5 (2) The permit holder's name.
6 (3) The permanent location of the business for which the
7 permit is issued.
8 (4) The expiration date of the permit.
9 (b) A permit is:
10 (1) valid for one (1) year after the date of issuance, unless the
11 commission suspends the permit; and
12 (2) nontransferable.
13 (c) A permit may be renewed. The fee for renewing a permit is
14 five thousand dollars ($5,000).
15 Sec. 6. If the majority of the ownership of a business that is a
16 permit holder is sold or transferred:
17 (1) the new ownership of the business must apply for a new
18 permit under section 2 of this chapter; and
19 (2) the permit and the permit number held by the previous
20 ownership of the business are void ninety (90) days after the
21 date of the sale or transfer of the ownership of the business.
22 Sec. 7. The commission may adopt rules under IC 4-22-2 to
23 establish procedures for the issuance, renewal, and reinstatement
24 of a permit.
25 Sec. 8. (a) Subject to subsection (b), the commission may
26 suspend the permit of a person who fails to pay a civil penalty
27 imposed by the commission.
28 (b) Before enforcing the imposition of a civil penalty or
29 suspending or revoking a permit under this chapter, the
30 commission shall provide written notice of the alleged violation to
31 the permit holder and conduct a hearing. The commission shall
32 provide written notice of the civil penalty or suspension or
33 revocation of a permit to the permit holder.
34 (c) Subject to subsection (b), the commission shall revoke the
35 permit of a person upon a finding by a preponderance of the
36 evidence that the person:
37 (1) has violated IC 35-45-5-3, IC 35-45-5-3.5, IC 35-45-5-4,
38 IC 35-46-1-11, IC 35-46-1-11.2, IC 35-46-1-11.4, or
39 IC 35-46-1-11.8;
40 (2) has committed habitual illegal sale of craft hemp as
41 established under IC 35-46-1-10.2(j); or
42 (3) has committed habitual illegal entrance by a minor as
SB 478—LS 6068/DI 120 14
1 established under IC 35-46-1-11.7(f).
2 Sec. 9. (a) If a permit has:
3 (1) expired; or
4 (2) been suspended;
5 the commission may not reinstate or renew the permit until all civil
6 penalties imposed against the permit holder for violating
7 IC 35-46-1-10, IC 35-46-1-10.2, IC 35-46-1-11, IC 35-46-1-11.2,
8 IC 35-46-1-11.4, IC 35-46-1-11.5, IC 35-46-1-11.7, or
9 IC 35-46-1-11.8 have been paid.
10 (b) The failure to pay a civil penalty described in subsection (a)
11 is a Class B infraction.
12 (c) If a permit has been revoked, the commission may not
13 reinstate or renew the permit for at least one hundred eighty (180)
14 days after the date of revocation. The commission may reinstate or
15 renew the permit only upon a reasonable showing by the applicant
16 that the applicant shall:
17 (1) exercise due diligence in the distribution of craft hemp;
18 and
19 (2) properly supervise and train the applicant's employees or
20 agents in the handling and distribution of craft hemp.
21 If a permit is reinstated or renewed, the applicant of the permit
22 shall pay an application fee of one thousand dollars ($1,000).
23 Sec. 10. A person who is required to have a permit under this
24 chapter and distributes craft hemp without a valid permit commits
25 a Class A infraction. Each violation of this section constitutes a
26 separate offense.
27 Sec. 11. The commission may mitigate civil penalties imposed
28 against a permit holder for violating IC 35-46-1-10,
29 IC 35-46-1-10.2, IC 35-46-1-11, IC 35-46-1-11.2, IC 35-46-1-11.4,
30 IC 35-46-1-11.5, IC 35-46-1-11.7, IC 35-46-1-11.8, or any of the
31 provisions of this chapter if a permit holder provides a training
32 program for the permit holder's employees that includes training
33 in laws governing the distribution of craft hemp.
34 Sec. 12. A permit holder shall exercise due diligence in the
35 supervision and training of the permit holder's employees or agents
36 in the handling and distribution of craft hemp.
37 Sec. 13. (a) An employee of a permit holder must hold a valid:
38 (1) driver's license issued by the state of Indiana or another
39 state; or
40 (2) identification card issued by the state of Indiana, another
41 state, or the United States;
42 to sell craft hemp.
SB 478—LS 6068/DI 120 15
1 (b) An employee must have the employee's driver's license or
2 identification card or a copy of the employee's driver's license or
3 identification card:
4 (1) either:
5 (A) in the employee's possession; or
6 (B) on file with the employee's employer; and
7 (2) upon request, readily available to show to an excise officer
8 or law enforcement;
9 when selling craft hemp.
10 (c) If an employee holds a valid license or identification card as
11 described in subsection (a) but is unable to show the license,
12 identification card, or a copy to an excise officer under subsection
13 (b) because:
14 (1) the employee has left the license, identification card, or
15 copy in another location; or
16 (2) the license, identification card, or copy has otherwise been
17 lost or mislaid;
18 the employee may, within five (5) days of the employee's inability
19 to show the license, identification card, or copy to the excise officer,
20 produce to the excise officer or to the office of the commission
21 satisfactory evidence of a license or identification card issued to the
22 individual that was valid at the time the individual was unable to
23 show the license, identification card, or copy.
24 (d) If an employee who is unable to show a license, identification
25 card, or copy to an excise officer fails to produce satisfactory
26 evidence within five (5) days in the manner described in subsection
27 (c), the commission may impose a civil penalty on the permit
28 holder.
29 Sec. 14. (a) If a permit holder fails to attend or participate in a
30 hearing without good cause, the hearing judge may recommend to
31 the commission that the commission suspend or revoke the permit
32 holder's permit or impose a fine on the permit holder of up to one
33 thousand dollars ($1,000).
34 (b) A hearing judge may grant a continuance of a hearing upon
35 written motion showing good cause for the continuance.
36 Sec. 15. If a permit holder distributes craft hemp at a location:
37 (1) determined to be a public nuisance; or
38 (2) at which conduct or acts that are crimes or infractions
39 under IC 35 occur;
40 the commission may impose sanctions against the permit holder.
41 Chapter 4. Craft Hemp Manufacturer Permits
42 Sec. 1. (a) A person may not manufacture craft hemp without a
SB 478—LS 6068/DI 120 16
1 valid craft hemp manufacturer permit issued by the commission.
2 (b) A permit may be issued only to a person who owns or
3 operates premises consisting of a permanent building or structure
4 where the craft hemp is manufactured.
5 Sec. 2. (a) A person who desires a permit must provide the
6 following to the commission:
7 (1) The applicant's name and mailing address and the address
8 of the premises for which the permit is being issued.
9 (2) A fee of five thousand dollars ($5,000).
10 (3) The name under which the applicant transacts or intends
11 to transact business.
12 (4) The address of the applicant's principal place of business
13 or headquarters, if any.
14 (5) The statement required under section 4 of this chapter.
15 (6) If the applicant is applying for a new permit under section
16 6 of this chapter, a copy of each of the following:
17 (A) If the new ownership of the business is a business
18 entity, the articles of incorporation, articles of
19 organization, or any other formation documents of the
20 business entity.
21 (B) If the new ownership of the business is an individual,
22 either:
23 (i) the sales or purchase agreement; or
24 (ii) an affidavit signed by the applicant concerning the
25 sale or purchase, on a form prescribed by the
26 commission, that includes the name and address of the
27 seller and purchaser.
28 (C) The permit held by the previous ownership of the
29 business.
30 (b) A separate permit is required for each location where the
31 craft hemp is manufactured.
32 (c) A permit holder shall conspicuously display the holder's
33 permit on the holder's premises where the craft hemp is
34 manufactured.
35 (d) Any intentional misstatement or suppression of a material
36 fact in an application filed under this section constitutes grounds
37 for denial of the permit.
38 (e) A permit may be issued only to a person who meets the
39 following requirements:
40 (1) If the person is an individual, the person must be at least
41 twenty-one (21) years of age.
42 (2) The person must be authorized to do business in Indiana.
SB 478—LS 6068/DI 120 17
1 (3) The person has not had an interest in a permit revoked by
2 the commission for that business location within the preceding
3 one (1) year.
4 (f) The fees collected under this section shall be deposited in the
5 enforcement and administration fund under IC 7.1-4-10.
6 Sec. 3 (a) Subject to available resources, the commission shall
7 not issue a craft hemp manufacturer permit, except as otherwise
8 authorized in this title and subject to the other restrictions
9 contained in this title, to the following persons:
10 (1) A person who does not have lawful status (as defined in
11 IC 9-13-2-92.3).
12 (2) A person who has been convicted within five (5) years
13 before the date of application of:
14 (A) a federal crime having a sentence of at least one (1)
15 year;
16 (B) a Level 1, Level 2, Level 3, Level 4, or Level 5 felony;
17 or
18 (C) a crime in a state other than Indiana having a penalty
19 equal to the penalty for an Indiana Level 1, Level 2, Level
20 3, Level 4, or Level 5 felony.
21 However, this subdivision does not apply to a conviction that
22 has been expunged under IC 35-38-9.
23 (3) A person who does not meet at least one (1) of the
24 following descriptions:
25 (A) The person owns the premises to which the permit will
26 be applicable.
27 (B) The person has a valid lease on the premises:
28 (i) at the time of the application for a permit; and
29 (ii) for the duration of the period in which the person
30 manufactures in the manner described in section 1 of this
31 chapter.
32 (C) The person has a franchise agreement with a
33 franchisor:
34 (i) that owns the premises to which the permit will be
35 applicable; or
36 (ii) that has a bona fide lease on the premises for the full
37 period for which the permit is to be issued.
38 (4) A person whose place of business is conducted by a
39 manager or agent, unless the manager or agent possesses the
40 same qualifications required for the issuance of a craft hemp
41 manufacturer permit to the person.
42 (5) A minor.
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1 (6) A person non compos mentis.
2 (7) A person who has held a permit or permit under this title
3 and who has had that permit or permit revoked within one (1)
4 year prior to the date of application for a craft hemp
5 manufacturer permit.
6 (8) A person who has made an application for a permit or
7 permit of any type under this title which has been denied less
8 than one (1) year prior to the person's application for a craft
9 hemp manufacturer permit unless the first application was
10 denied by reason of a procedural or technical defect.
11 (b) Subsection (a)(5) does not prevent a minor from being a
12 stockholder in a corporation.
13 Sec. 4. An application for a craft hemp permit must contain the
14 express statement of the applicant that the applicant consents for
15 the duration of the permit term (if the commission issues the
16 permit to the applicant) to the entrance, inspection, and search by
17 an enforcement officer, without a warrant or other process, of the
18 applicant's premises to determine whether the applicant is
19 complying with the provisions of this title. The consent required by
20 this section is renewed and continued by the retention of a permit
21 or the permit's use by the applicant or the applicant's agents.
22 Sec. 5. (a) A permit issued by the commission under this chapter
23 must contain the following information:
24 (1) The permit number.
25 (2) The permit holder's name.
26 (3) The permanent location of the business for which the
27 permit is issued.
28 (4) The expiration date of the permit.
29 (b) A permit is:
30 (1) valid for one (1) year after the date of issuance, unless the
31 commission suspends the permit; and
32 (2) nontransferable.
33 (c) A permit may be renewed. The fee for renewing a permit is
34 five thousand dollars ($5,000).
35 Sec. 6. If the majority of the ownership of a business that is a
36 permit holder is sold or transferred:
37 (1) the new ownership of the business must apply for a new
38 permit under section 2 of this chapter; and
39 (2) the permit and the permit number held by the previous
40 ownership of the business are void ninety (90) days after the
41 date of the sale or transfer of the ownership of the business.
42 Sec. 7. The commission may adopt rules under IC 4-22-2 to
SB 478—LS 6068/DI 120 19
1 establish procedures for the issuance, renewal, and reinstatement
2 of a permit.
3 Sec. 8. (a) Subject to subsection (b), the commission may
4 suspend the permit of a person who fails to pay a civil penalty
5 imposed by the commission.
6 (b) Before enforcing the imposition of a civil penalty or
7 suspending or revoking a permit under this chapter, the
8 commission shall provide written notice of the alleged violation to
9 the permit holder and conduct a hearing. The commission shall
10 provide written notice of the civil penalty or suspension or
11 revocation of a permit to the permit holder.
12 (c) Subject to subsection (b), the commission shall revoke the
13 permit of a person upon a finding by a preponderance of the
14 evidence that the person:
15 (1) has violated IC 35-45-5-3, IC 35-45-5-3.5, IC 35-45-5-4,
16 IC 35-46-1-11, IC 35-46-1-11.2, IC 35-46-1-11.4, or
17 IC 35-46-1-11.8;
18 (2) has committed habitual illegal sale of craft hemp as
19 established under IC 35-46-1-10.2(j); or
20 (3) has committed habitual illegal entrance by a minor as
21 established under IC 35-46-1-11.7(f).
22 Sec. 9. (a) If a permit has:
23 (1) expired; or
24 (2) been suspended;
25 the commission may not reinstate or renew the permit until all civil
26 penalties imposed against the permit holder for violating
27 IC 35-46-1-10, IC 35-46-1-10.2, IC 35-46-1-11, IC 35-46-1-11.2,
28 IC 35-46-1-11.4, IC 35-46-1-11.5, IC 35-46-1-11.7, or
29 IC 35-46-1-11.8 have been paid.
30 (b) The failure to pay a civil penalty described in subsection (a)
31 is a Class B infraction.
32 (c) If a permit has been revoked, the commission may not
33 reinstate or renew the permit for at least one hundred eighty (180)
34 days after the date of revocation. The commission may reinstate or
35 renew the permit only upon a reasonable showing by the applicant
36 that the applicant shall:
37 (1) exercise due diligence in the distribution of craft hemp;
38 and
39 (2) properly supervise and train the applicant's employees or
40 agents in the handling and distribution of craft hemp.
41 If a permit is reinstated or renewed, the applicant of the permit
42 shall pay an application fee of one thousand dollars ($1,000).
SB 478—LS 6068/DI 120 20
1 Sec. 10. A person who is required to have a permit under this
2 chapter and manufactures craft hemp without a valid permit
3 commits a Class A infraction. Each violation of this section
4 constitutes a separate offense.
5 Sec. 11. The commission may mitigate civil penalties imposed
6 against a permit holder for violating IC 35-46-1-10,
7 IC 35-46-1-10.2, IC 35-46-1-11, IC 35-46-1-11.2, IC 35-46-1-11.4,
8 IC 35-46-1-11.5, IC 35-46-1-11.7, IC 35-46-1-11.8, or any of the
9 provisions of this chapter if a permit holder provides a training
10 program for the permit holder's employees that includes training
11 in laws governing the distribution of craft hemp.
12 Sec. 12. A permit holder shall exercise due diligence in the
13 supervision and training of the permit holder's employees or agents
14 in the handling and distribution of craft hemp.
15 Sec. 13. (a) An employee of a permit holder must hold a valid:
16 (1) driver's license issued by the state of Indiana or another
17 state; or
18 (2) identification card issued by the state of Indiana, another
19 state, or the United States;
20 to sell craft hemp.
21 (b) An employee must have the employee's driver's license or
22 identification card or a copy of the employee's driver's license or
23 identification card:
24 (1) either:
25 (A) in the employee's possession; or
26 (B) on file with the employee's employer; and
27 (2) upon request, readily available to show to an excise officer
28 or law enforcement;
29 when selling craft hemp.
30 (c) If an employee holds a valid license or identification card as
31 described in subsection (a) but is unable to show the license,
32 identification card, or a copy to an excise officer under subsection
33 (b) because:
34 (1) the employee has left the license, identification card, or
35 copy in another location; or
36 (2) the license, identification card, or copy has otherwise been
37 lost or mislaid;
38 the employee may, within five (5) days of the employee's inability
39 to show the license, identification card, or copy to the excise officer,
40 produce to the excise officer or to the office of the commission
41 satisfactory evidence of a license or identification card issued to the
42 individual that was valid at the time the individual was unable to
SB 478—LS 6068/DI 120 21
1 show the license, identification card, or copy.
2 (d) If an employee who is unable to show a license, identification
3 card, or copy to an excise officer fails to produce satisfactory
4 evidence within five (5) days in the manner described in subsection
5 (c), the commission may impose a civil penalty on the permit
6 holder.
7 Sec. 14. (a) If a permit holder fails to attend or participate in a
8 hearing without good cause, the hearing judge may recommend to
9 the commission that the commission suspend or revoke the permit
10 holder's permit or impose a fine on the permit holder of up to one
11 thousand dollars ($1,000).
12 (b) A hearing judge may grant a continuance of a hearing upon
13 written motion showing good cause for the continuance.
14 Sec. 15. If a permit holder manufactures craft hemp at a
15 location:
16 (1) determined to be a public nuisance; or
17 (2) at which conduct or acts that are crimes or infractions
18 under IC 35 occur;
19 the commission may impose sanctions against the permit holder.
20 Chapter 5. Retail Establishments
21 Sec. 1. A craft hemp retail establishment must keep the craft
22 hemp behind a bar or in a location to which a purchaser does not
23 have access. If a person purchases craft hemp, an employee of the
24 retail establishment shall remove the craft hemp from behind the
25 bar or from the inaccessible location and deliver it to the
26 purchaser.
27 Sec. 2. A retail establishment may not permit consumption of
28 craft hemp on the premises of the retail establishment.
29 Sec. 3. A retail establishment that does not have a tobacco sales
30 certificate may not permit a person less than twenty-one (21) years
31 of age on the premises.
32 Chapter 6. Manufacturing Facilities
33 Sec. 1. A craft hemp manufacturer must submit any proposed
34 craft hemp packaging to the commission for preapproval before
35 delivering or causing delivery of craft hemp to a retail
36 establishment.
37 SECTION 8. IC 15-15-13-6.7 IS ADDED TO THE INDIANA
38 CODE AS A NEW SECTION TO READ AS FOLLOWS
39 [EFFECTIVE JULY 1, 2025]: Sec. 6.7. As used in this chapter,
40 "work in progress hemp extract" means a compound:
41 (1) derived from hemp;
42 (2) intended to be processed into a hemp product;
SB 478—LS 6068/DI 120 22
1 (3) in a partially processed state;
2 (4) having a concentration of delta-9 THC that exceeds
3 three-tenths of one percent (0.3%) by dry weight; and
4 (5) not marketed for consumer use or consumption.
5 SECTION 9. IC 15-15-13-11, AS AMENDED BY P.L.190-2019,
6 SECTION 12, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
7 JULY 1, 2025]: Sec. 11. Only a hemp licensee, the licensee's designee,
8 or the licensee's agents may be permitted to transport hemp or work in
9 progress hemp extract off a production site. When transporting hemp
10 or work in progress hemp extract off the production site, the hemp
11 licensee, designee, or agent shall have in the licensee's, designee's, or
12 agent's possession the licensing documents from the state seed
13 commissioner evidencing that the hemp or work in progress hemp
14 extract is from certified seed produced by a licensed grower.
15 SECTION 10. IC 15-15-13-11.5 IS ADDED TO THE INDIANA
16 CODE AS A NEW SECTION TO READ AS FOLLOWS
17 [EFFECTIVE JULY 1, 2025]: Sec. 11.5. (a) Subject to subsection (b),
18 a handler holding a valid license under this chapter may possess,
19 manufacture, store, transport, or sell work in progress hemp
20 extract.
21 (b) Work in progress hemp extract may be sold only to a:
22 (1) handler holding a valid license under this chapter; or
23 (2) person holding a valid hemp or cannabis license in another
24 jurisdiction.
25 SECTION 11. IC 15-15-13-19, AS ADDED BY P.L.190-2019,
26 SECTION 20, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
27 JULY 1, 2025]: Sec. 19. (a) Hemp bud (as defined in IC 35-48-1-17.2)
28 and hemp flower (as defined in IC 35-48-1-17.3) Craft hemp flower
29 (as defined by IC 35-31.5-2-68.8) may be transported or sold
30 intrastate only to a processor licensed under this chapter for
31 processing or manufacturing into a legal hemp product, including
32 a craft hemp flower product (as defined by IC 35-31.5-2-68.9).
33 (b) Craft hemp flower may be sold and transported interstate in
34 accordance with section 11 of this chapter.
35 (b) (c) The state seed commissioner may impose a civil penalty
36 under section 13 of this chapter for a violation of subsection (a).
37 SECTION 12. IC 16-42-2-2 IS AMENDED TO READ AS
38 FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 2. (a) A food is
39 considered adulterated under any of the following conditions:
40 (1) If the food bears or contains any poisonous or deleterious
41 substance that may make the food injurious to health. However,
42 if the substance is not an added substance, the food is not to be
SB 478—LS 6068/DI 120 23
1 considered adulterated under this subdivision if the quantity of the
2 substance in the food does not ordinarily make the food injurious
3 to health.
4 (2) If:
5 (A) the food bears or contains any added poison or added
6 deleterious substance (other than a poison or a deleterious
7 substance that is a pesticide chemical in or on a raw
8 agricultural commodity, a food additive, or a color additive)
9 that is unsafe within the meaning of section 5 of this chapter;
10 (B) the food is a raw agricultural commodity and the food
11 bears or contains a pesticide chemical that is unsafe under
12 section 5 of this chapter; or
13 (C) the food is or contains a food additive that is unsafe under
14 section 5 of this chapter.
15 However, when a pesticide chemical is used in or on a raw
16 agricultural commodity in conformity with an exemption granted
17 or tolerance prescribed under section 5 of this chapter and the raw
18 agricultural commodity has been subjected to processing such as
19 canning, cooking, freezing, dehydrating, or milling, the residue of
20 the pesticide chemical remaining in or on the processed food,
21 notwithstanding section 5 of this chapter and clause (C) is not
22 considered unsafe if the residue in or on the raw agricultural
23 commodity has been removed to the extent possible in good
24 manufacturing practice, and the concentration of the residues in
25 the processed food, when ready to eat, is not greater than the
26 tolerance prescribed for the raw agricultural commodity.
27 (3) If the food consists in whole or in part of a diseased,
28 contaminated, filthy, putrid, or decomposed substance or if the
29 food is otherwise unfit for food.
30 (4) If the food has been produced, transported, handled, prepared,
31 packed, or held under unsanitary conditions or in unsanitary
32 containers as the result of which the food may have become
33 contaminated with filth or made diseased, unwholesome, or
34 injurious to health.
35 (5) If the food is, in whole or in part, the product of:
36 (A) a diseased animal;
37 (B) an animal that has died otherwise than by slaughter; or
38 (C) an animal that has been fed upon the uncooked offal from
39 a slaughterhouse.
40 (6) If the food's container is composed in whole or in part of any
41 poisonous or deleterious substance that may make the contents
42 injurious to health.
SB 478—LS 6068/DI 120 24
1 (7) If the food has been intentionally subjected to radiation, unless
2 the use of the radiation was in conformity with a rule or an
3 exemption in effect under section 5 of this chapter.
4 (8) If any valuable constituent has been in whole or in part
5 omitted or abstracted from the food.
6 (9) If any substance has been substituted wholly or in part.
7 (10) If damage or inferiority has been concealed in any manner.
8 (11) If any substance has been added to the food or mixed or
9 packed with the food to:
10 (A) increase the food's bulk or weight;
11 (B) reduce the food's quality or strength;
12 (C) make the food appear better or of greater value than the
13 food is; or
14 (D) create a deceptive appearance.
15 (12) If the food bears or contains a coal-tar color other than one
16 from a batch that has been certified by the federal Food and Drug
17 Administrator, as provided by regulations promulgated under
18 authority of the Federal Act.
19 (13) If the food is a confectionery and has partially or completely
20 imbedded embedded in the food any nonnutritive object.
21 However, this subdivision does not apply in the case of any
22 nonnutritive object if, in the judgment of the state department as
23 provided by rules, the nonnutritive object is of practical,
24 functional value to the confectionery product and would not make
25 the product injurious or hazardous to health.
26 (14) If the food is a confectionery and bears or contains any
27 alcohol other than alcohol not in excess of one-half of one percent
28 (0.5%) by volume derived solely from the use of flavoring
29 extracts.
30 (15) If the food is a confectionery and bears or contains any
31 nonnutritive substance. However, this subdivision does not apply
32 to a safe, nonnutritive substance if:
33 (A) the nonnutritive substance is in or on a confectionery for
34 a practical, functional purpose in the manufacture, packaging,
35 or storing of the confectionery; and
36 (B) the use of the substance does not promote deception of the
37 consumer or otherwise result in adulteration or misbranding in
38 violation of any provision of IC 16-42-1 through IC 16-42-4.
39 In addition, the state department may, for the purpose of
40 avoiding or resolving uncertainty as to the application of this
41 subdivision, adopt rules allowing or prohibiting the use of
42 particular nonnutritive substances.
SB 478—LS 6068/DI 120 25
1 (16) If the food falls below the standard of purity, quality, or
2 strength that the food purports or is represented to possess.
3 (17) If the food is or bears or contains any color additive that is
4 unsafe under section 5 of this chapter.
5 (b) Subsection (a)(8) and (a)(9) do not prohibit:
6 (1) the removal of butterfat from; or
7 (2) the addition of skim milk to;
8 dairy products that comply with the definitions and standards for dairy
9 products adopted by the state department.
10 (c) A food is not considered adulterated for containing low THC
11 hemp extract (as defined in IC 35-48-1-17.5) or craft hemp flower
12 (as defined in IC 35-31.5-2-68.8).
13 SECTION 13. IC 24-4-21-4, AS ADDED BY P.L.153-2018,
14 SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
15 JULY 1, 2025]: Sec. 4. (a) Except as provided in subsection (b), low
16 THC hemp extract must be distributed in packaging that contains the
17 following information:
18 (1) A scannable bar code or QR code linked to a document that
19 contains information with respect to the manufacture of the low
20 THC hemp extract, including the:
21 (A) batch identification number;
22 (B) product name;
23 (C) batch date;
24 (D) expiration date, which must be not more than two (2) years
25 from the date of manufacture;
26 (E) batch size;
27 (F) total quantity produced; and
28 (G) ingredients used, including the:
29 (i) ingredient name;
30 (ii) name of the company that manufactured the ingredient;
31 (iii) company or product identification number or code, if
32 applicable; and
33 (iv) ingredient lot number; and
34 (H) (G) download link for a certificate of analysis for the low
35 THC hemp extract.
36 (2) The batch number.
37 (3) The Internet address of a web site website to obtain batch
38 information.
39 (4) The expiration date.
40 (5) The number of milligrams of low THC hemp extract.
41 (6) The manufacturer.
42 (7) The fact that the product contains not more than three-tenths
SB 478—LS 6068/DI 120 26
1 of one percent (0.3%) total delta-9-tetrahydrocannabinol (THC),
2 including precursors, by weight.
3 (b) Before July 1, 2018, low THC hemp extract may be distributed
4 in Indiana without having met the requirements described in subsection
5 (a).
6 (b) After June 30, 2025, the packaging of low THC hemp extract
7 may not:
8 (1) contain any statement, artwork, or design that could
9 reasonably mislead any person to believe that the package
10 contains anything other than low THC hemp extract;
11 (2) bear the likeness or contain a cartoon-like characteristic
12 of a real or fictional person, animal, or fruit that appeals to
13 children; or
14 (3) bear an unauthorized trademark, trade name, famous
15 mark, or other identifying mark, imprint, or device, or any
16 likeness thereof.
17 SECTION 14. IC 24-4-22-3, AS ADDED BY P.L.153-2018,
18 SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
19 JULY 1, 2025]: Sec. 3. (a) Except as provided in subsection (b), A
20 person may sell low THC hemp extract at retail only if the packaging
21 complies with the requirements of IC 24-4-21-4.
22 (b) Before July 1, 2018, a person may sell low THC hemp extract at
23 retail even if the packaging does not comply with the requirements of
24 IC 24-4-21-4.
25 (b) Beginning July 1, 2025, no low THC hemp extract
26 containing:
27 (1) Delta-8 THC;
28 (2) Delta-10 THC;
29 (3) Hexahydrocannabinol (HHC);
30 (4) Tetrahydrocannabinol acetate ester (THCo);
31 (5) Tetrahydrocannabiporol (THCp); or
32 (6) Tetrahydrocannabivarin (THCv);
33 may be distributed, sold, or offered for sale at retail or online to a
34 person who is less than twenty-one (21) years of age.
35 (c) Any website owned, managed, or operated by a person who
36 distributes or sells a product containing:
37 (1) Delta-8 THC;
38 (2) Delta-10 THC;
39 (3) Hexahydrocannabinol (HHC);
40 (4) Tetrahydrocannabinol acetate ester (THCo);
41 (5) Tetrahydrocannabiporol (THCp); or
42 (6) Tetrahydrocannabivarin (THCv);
SB 478—LS 6068/DI 120 27
1 directly to consumers must verify a consumer's age by either using
2 a reliable online age verification service, or by obtaining and
3 examining a copy of a government issued identification, prior to
4 completing a purchase.
5 (d) A person who violates this section is subject to a civil penalty
6 not to exceed the following:
7 (1) One thousand dollars ($1,000) for a first violation.
8 (2) Five thousand dollars ($5,000) for a second violation that
9 occurs within two (2) years after a first violation, and
10 suspension of the retail dealer's certificate for up to six (6)
11 months.
12 (3) Ten thousand dollars ($10,000) for each subsequent
13 violation that occurs within two (2) years of the preceding
14 violation, and revocation of the retail dealer's certificate, with
15 a one (1) year waiting period for reapplication.
16 (e) It is a defense to a violation under this section that the
17 distributor or seller examined the purchaser's or recipient's
18 driver's license, or other valid government issued identification,
19 that positively identified the purchaser or recipient as being at least
20 twenty-one (21) years of age.
21 SECTION 15. IC 24-4-24 IS ADDED TO THE INDIANA CODE
22 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
23 JULY 1, 2025]:
24 Chapter 24. Distribution of Craft Hemp Flower Products
25 Sec. 1. As used in this chapter, "certificate of analysis" means
26 a certificate from an independent testing laboratory describing the
27 results of the laboratory's testing of a sample.
28 Sec. 2. As used in this chapter, "craft hemp flower product" has
29 the meaning set forth in IC 35-31.5-2-68.9.
30 Sec. 3. As used in this chapter, "independent testing laboratory"
31 means a laboratory:
32 (1) with respect to which no person having a direct or indirect
33 interest in the laboratory also has a direct or indirect interest
34 in a facility that:
35 (A) processes, distributes, or sells a craft hemp flower
36 product, or a substantially similar substance in another
37 jurisdiction;
38 (B) cultivates, processes, distributes, dispenses, or sells
39 marijuana;
40 (C) cultivates, processes, or distributes hemp; or
41 (D) processes, distributes, or sells low THC hemp extract
42 (as defined in IC 35-48-1-17.5); and
SB 478—LS 6068/DI 120 28
1 (2) that is accredited as a testing laboratory under
2 International Organization for Standardization (ISO) 17025
3 by a third party accrediting body such as the American
4 Association for Laboratory Accreditation (A2LA) or Assured
5 Calibration and Laboratory Accreditation Select Services
6 (ACLASS).
7 Sec. 4. As used in this chapter, "tamper evident packaging"
8 means a package having at least one (1) indicator or a barrier to
9 entry that, if breached or missing, can reasonably be expected to
10 provide visible evidence to consumers that tampering has occurred.
11 Sec. 5. (a) Before a person may distribute a craft hemp flower
12 product, the distributor must have a certificate of analysis
13 prepared by an independent testing laboratory showing the
14 following:
15 (1) That the craft hemp flower product is the product of a
16 batch tested by the independent testing laboratory.
17 (2) That the independent testing laboratory determined that
18 the batch contained not more than three-tenths of one percent
19 (0.3%) delta-9-tetrahydrocannabinol (THC), including
20 precursors, by weight, based on the testing of a random
21 sample of the batch.
22 (3) That the batch has been tested for and does not exceed the
23 acceptable levels set forth under section 7 of this chapter for
24 the following contaminants:
25 (A) Heavy metals, including cadmium, lead, arsenic, and
26 mercury.
27 (B) Pesticides.
28 (C) Herbicides.
29 (D) Mycotoxins.
30 (E) Bacterial toxins.
31 (F) Chemical solvent residues.
32 (4) The potency of the craft hemp flower product, including
33 the projected percentage of:
34 (A) THC;
35 (B) cannabidiol; and
36 (C) other cannabinoids in the craft hemp flower product;
37 by weight or volume.
38 (b) Each batch of a craft hemp flower product submitted to an
39 independent testing laboratory under this section must have been
40 harvested at the same time and cultivated in a contiguous area in
41 the same field or facility.
42 Sec. 6. A craft hemp flower product must be distributed in
SB 478—LS 6068/DI 120 29
1 tamper evident packaging that contains the following information:
2 (1) A scannable bar code or QR code linked to a document
3 that contains information with respect to the craft hemp
4 flower product, including the:
5 (A) batch identification number;
6 (B) product name;
7 (C) batch date;
8 (D) expiration date, which must be not more than two (2)
9 years from the date of harvest;
10 (E) batch size;
11 (F) total quantity produced;
12 (G) ingredients used, including the:
13 (i) ingredient name;
14 (ii) name of the company that manufactured the
15 ingredient;
16 (iii) company or product identification number or code,
17 if applicable; and
18 (iv) ingredient lot number; and
19 (H) download link for a certificate of analysis for the craft
20 hemp flower product.
21 (2) The batch identification number.
22 (3) The address of a website to obtain batch information.
23 (4) The expiration date, which must be not more than two (2)
24 years from the date of harvest.
25 (5) The number of grams of craft hemp flower (as defined by
26 IC 35-31.5-2-68.8) contained in the craft hemp flower product.
27 (6) The facility that produced the craft hemp flower product.
28 (7) The fact that the product contains not more than
29 three-tenths of one percent (0.3%)
30 delta-9-tetrahydrocannabinol (THC), including precursors, by
31 weight.
32 Sec. 7. A craft hemp flower product may not be distributed if a
33 certificate of analysis prepared by an independent testing
34 laboratory shows any of the following:
35 (1) A concentration of metals that is more than any of the
36 following:
37 (A) Four-tenths (0.4) part per million of cadmium.
38 (B) Five-tenths (0.5) part per million of lead.
39 (C) Four-tenths (0.4) part per million of arsenic.
40 (D) Two-tenths (0.2) part per million of mercury.
41 (2) A concentration of microbiological units that is more than
42 any of the following:
SB 478—LS 6068/DI 120 30
1 (A) One (1) colony forming unit per gram of Shiga-Toxin
2 Escherichia coli.
3 (B) One (1) colony forming unit per gram of Salmonella
4 spp.
5 (C) Ten thousand (10,000) colony forming units of
6 culturable mold.
7 (3) A concentration of residual solvents and chemicals that is
8 not more than any of the following:
9 (A) Five thousand (5,000) parts per million of butane.
10 (B) Two (2) parts per million of benzene.
11 (C) Five thousand (5,000) parts per million of heptane.
12 (D) Two hundred ninety (290) parts per million of hexane.
13 (E) Eight hundred ninety (890) parts per million of toluene.
14 (F) One (1) part per million of total xylenes, including
15 ortho-xylene, meta-xylene, and para-xylene.
16 Sec. 8. (a) A person in a motor vehicle who, while the motor
17 vehicle is in operation or the motor vehicle is located on the
18 right-of-way of a public highway (as defined in IC 9-25-2-4),
19 knowingly or intentionally possesses a container that contains a
20 craft hemp flower product, and:
21 (1) the container does not have tamper evident packaging; or
22 (2) the tamper evident packaging has a broken seal;
23 commits a Class C misdemeanor.
24 (b) A violation of this section is not considered a moving traffic
25 violation:
26 (1) for purposes of IC 9-14-12-3; and
27 (2) for which points are assessed by the bureau of motor
28 vehicles under the point system.
29 Sec. 9. (a) A person who knowingly or intentionally distributes
30 or sells a craft hemp flower product in violation of this chapter
31 commits a Class B misdemeanor. However, the offense is a Class
32 A misdemeanor if the person has a prior unrelated conviction for
33 a violation of this chapter.
34 (b) The penalties in this section are in addition to any criminal
35 penalties that may be imposed for unlawful possession or
36 distribution of a controlled substance.
37 SECTION 16. IC 35-31.5-2-68.8 IS ADDED TO THE INDIANA
38 CODE AS A NEW SECTION TO READ AS FOLLOWS
39 [EFFECTIVE JULY 1, 2025]: Sec. 68.8. (a) "Craft hemp flower"
40 means the harvested reproductive organ, whether immature or
41 mature, of the female Cannabis sativa L. plant containing not more
42 than three-tenths of one percent (0.3%)
SB 478—LS 6068/DI 120 31
1 delta-9-tetrahydrocannabinol (THC), including precursors of
2 THC, in a form that is intended to allow THC to be introduced into
3 the human body by inhalation of smoke.
4 (b) The term does not include agricultural hemp seed (as defined
5 in IC 15-15-13-2).
6 SECTION 17. IC 35-31.5-2-68.9 IS ADDED TO THE INDIANA
7 CODE AS A NEW SECTION TO READ AS FOLLOWS
8 [EFFECTIVE JULY 1, 2025]: Sec. 68.9. "Craft hemp flower
9 product" means a substance or product for sale to consumers that:
10 (1) is derived from or contains any part of craft hemp flower;
11 and
12 (2) is in the form of:
13 (A) a gummy;
14 (B) an edible;
15 (C) a tincture; or
16 (D) an e-liquid in a tamper evident container.
17 The term does not include smokable hemp.
18 SECTION 18. IC 35-31.5-2-100, AS AMENDED BY P.L.49-2020,
19 SECTION 25, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
20 JULY 1, 2025]: Sec. 100. (a) "Distribute", for purposes of
21 IC 35-45-4-8, has the meaning set forth in IC 35-45-4-8.
22 (b) "Distribute", for purposes of IC 35-46-1-10, has the meaning set
23 forth in IC 35-46-1-10(f). IC 35-46-1-10(a).
24 (c) "Distribute", for purposes of IC 35-46-1-10.2, has the meaning
25 set forth in IC 35-46-1-10.2(g). IC 35-46-1-10.2(a).
26 (d) "Distribute", for purposes of IC 35-47.5, has the meaning set
27 forth in IC 35-47.5-2-6.
28 (e) "Distribute", for purposes of IC 35-48, has the meaning set forth
29 in IC 35-48-1-14.
30 (f) "Distribute", for purposes of IC 35-49, has the meaning set forth
31 in IC 35-49-1-2.
32 SECTION 19. IC 35-46-1-10, AS AMENDED BY P.L.32-2021,
33 SECTION 97, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
34 JULY 1, 2025]: Sec. 10. (a) As used in this section, "distribute"
35 means to give tobacco, a craft hemp flower product, an e-liquid, or
36 an electronic cigarette to another person as a means of promoting,
37 advertising, or marketing the tobacco, craft hemp flower product,
38 e-liquid, or electronic cigarette to the general public.
39 (a) (b) A person may not be charged with a violation under this
40 section and a violation under IC 7.1-7-6-5.
41 (b) (c) A person who knowingly:
42 (1) sells or distributes tobacco, a craft hemp flower product, an
SB 478—LS 6068/DI 120 32
1 e-liquid, or an electronic cigarette to a person less than
2 twenty-one (21) years of age; or
3 (2) purchases tobacco, a craft hemp flower product, an e-liquid,
4 or an electronic cigarette for delivery to another person who is
5 less than twenty-one (21) years of age;
6 commits a Class C infraction. For a sale to take place under this
7 section, the buyer must pay the seller for the tobacco, craft hemp
8 flower product, e-liquid, or electronic cigarette.
9 (c) (d) It is not a defense that the person to whom the tobacco, craft
10 hemp flower product, e-liquid, or electronic cigarette was sold or
11 distributed did not smoke, chew, inhale, or otherwise consume the
12 tobacco, craft hemp flower product, e-liquid, or electronic cigarette.
13 (d) (e) The following defenses are available to a person accused of
14 selling or distributing tobacco, a craft hemp flower product, an
15 e-liquid, or an electronic cigarette to a person who is less than
16 twenty-one (21) years of age:
17 (1) The buyer or recipient produced a driver's license bearing the
18 purchaser's or recipient's photograph, showing that the purchaser
19 or recipient was of legal age to make the purchase.
20 (2) The buyer or recipient produced a photographic identification
21 card issued under IC 9-24-16-1, or a similar card issued under the
22 laws of another state or the federal government, showing that the
23 purchaser or recipient was of legal age to make the purchase.
24 (3) The appearance of the purchaser or recipient was such that an
25 ordinary prudent person would believe that the purchaser or
26 recipient was not less than thirty (30) years of age.
27 (e) (f) It is a defense that the accused person sold or delivered the
28 tobacco, craft hemp flower product, e-liquid, or electronic cigarette
29 to a person who acted in the ordinary course of employment or a
30 business concerning tobacco, a craft hemp flower product, an
31 e-liquid, or electronic cigarettes including the following activities:
32 (1) Agriculture.
33 (2) Processing.
34 (3) Transporting.
35 (4) Wholesaling.
36 (5) Retailing.
37 (f) As used in this section, "distribute" means to give tobacco, an
38 e-liquid, or an electronic cigarette to another person as a means of
39 promoting, advertising, or marketing the tobacco, e-liquid, or electronic
40 cigarette to the general public.
41 (g) Unless the person buys or receives tobacco, a craft hemp
42 flower product, an e-liquid, or an electronic cigarette under the
SB 478—LS 6068/DI 120 33
1 direction of a law enforcement officer as part of an enforcement action,
2 a person who sells or distributes tobacco, a craft hemp flower
3 product, an e-liquid, or an electronic cigarette is not liable for a
4 violation of this section unless the person less than twenty-one (21)
5 years of age who bought or received the tobacco, craft hemp flower
6 product, e-liquid, or electronic cigarette is issued a citation or
7 summons under section 10.5 of this chapter.
8 (h) Notwithstanding IC 34-28-5-5(c), civil penalties collected under
9 this section must be deposited in the Richard D. Doyle youth tobacco
10 education and enforcement fund (IC 7.1-6-2-6).
11 SECTION 20. IC 35-46-1-10.2, AS AMENDED BY P.L.32-2021,
12 SECTION 98, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
13 JULY 1, 2025]: Sec. 10.2. (a) As used in this section, "distribute"
14 means to give tobacco, a craft hemp flower product, an e-liquid, or
15 an electronic cigarette to another person as a means of promoting,
16 advertising, or marketing the tobacco, craft hemp flower product,
17 e-liquid, or electronic cigarette to the general public.
18 (a) (b) A person may not be charged with a violation under this
19 section and a violation under IC 7.1-7-6-5.
20 (b) (c) A retail establishment that sells or distributes tobacco, a
21 craft hemp flower product, an e-liquid, or an electronic cigarette to
22 a person less than twenty-one (21) years of age commits a Class C
23 infraction. For a sale to take place under this section, the buyer must
24 pay the retail establishment for the tobacco, craft hemp flower
25 product, e-liquid, or electronic cigarette.
26 (c) (d) Notwithstanding IC 34-28-5-4(c), a civil judgment for an
27 infraction committed under this section must be imposed as follows:
28 (1) If the retail establishment at that specific business location has
29 not been issued a citation or summons for a violation of this
30 section in the previous one (1) year, a civil penalty of up to four
31 hundred dollars ($400).
32 (2) If the retail establishment at that specific business location has
33 had one (1) citation or summons issued for a violation of this
34 section in the previous one (1) year, a civil penalty of up to eight
35 hundred dollars ($800).
36 (3) If the retail establishment at that specific business location has
37 had two (2) citations or summonses issued for a violation of this
38 section in the previous one (1) year, a civil penalty of up to one
39 thousand four hundred dollars ($1,400).
40 (4) If the retail establishment at that specific business location has
41 had three (3) or more citations or summonses issued for a
42 violation of this section in the previous one (1) year, a civil
SB 478—LS 6068/DI 120 34
1 penalty of up to two thousand dollars ($2,000).
2 A retail establishment may not be issued a citation or summons for a
3 violation of this section more than once every twenty-four (24) hours
4 for each specific business location.
5 (d) (e) It is not a defense that the person to whom the tobacco, craft
6 hemp flower product, e-liquid, or electronic cigarette was sold or
7 distributed did not smoke, chew, inhale, or otherwise consume the
8 tobacco, craft hemp flower product, e-liquid, or electronic cigarette.
9 (e) (f) The following defenses are available to a retail establishment
10 accused of selling or distributing tobacco, a craft hemp flower
11 product, an e-liquid, or an electronic cigarette to a person who is less
12 than twenty-one (21) years of age:
13 (1) The buyer or recipient produced a driver's license bearing the
14 purchaser's or recipient's photograph showing that the purchaser
15 or recipient was of legal age to make the purchase.
16 (2) The buyer or recipient produced a photographic identification
17 card issued under IC 9-24-16-1 or a similar card issued under the
18 laws of another state or the federal government showing that the
19 purchaser or recipient was of legal age to make the purchase.
20 (3) The appearance of the purchaser or recipient was such that an
21 ordinary prudent person would believe that the purchaser or
22 recipient was not less than thirty (30) years of age.
23 (f) (g) It is a defense that the accused retail establishment sold or
24 delivered the tobacco, craft hemp flower product, e-liquid, or
25 electronic cigarette to a person who acted in the ordinary course of
26 employment or a business concerning tobacco, a craft hemp flower
27 product, an e-liquid, or electronic cigarettes for the following
28 activities:
29 (1) Agriculture.
30 (2) Processing.
31 (3) Transporting.
32 (4) Wholesaling.
33 (5) Retailing.
34 (g) As used in this section, "distribute" means to give tobacco, an
35 e-liquid, or an electronic cigarette to another person as a means of
36 promoting, advertising, or marketing the tobacco or electronic cigarette
37 to the general public.
38 (h) Unless a person buys or receives tobacco, a craft hemp flower
39 product, an e-liquid, or an electronic cigarette under the direction of
40 a law enforcement officer as part of an enforcement action, a retail
41 establishment that sells or distributes tobacco, a craft hemp flower
42 product, an e-liquid, or an electronic cigarette is not liable for a
SB 478—LS 6068/DI 120 35
1 violation of this section unless the person less than twenty-one (21)
2 years of age who bought or received the tobacco, craft hemp flower
3 product, e-liquid, or electronic cigarette is issued a citation or
4 summons under section 10.5 of this chapter.
5 (i) Notwithstanding IC 34-28-5-5(c), civil penalties collected under
6 this section must be deposited in the Richard D. Doyle youth tobacco
7 education and enforcement fund (IC 7.1-6-2-6).
8 (j) A person who violates subsection (b) (c) at least six (6) times in
9 any one (1) year commits habitual illegal sale of tobacco, sales, a Class
10 B infraction.
11 SECTION 21. IC 35-46-1-10.5, AS AMENDED BY P.L.49-2020,
12 SECTION 32, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
13 JULY 1, 2025]: Sec. 10.5. (a) A person less than twenty-one (21) years
14 of age who:
15 (1) purchases tobacco, a craft hemp flower product, an e-liquid,
16 or an electronic cigarette;
17 (2) accepts tobacco, a craft hemp flower product, an e-liquid,
18 or an electronic cigarette for personal use; or
19 (3) possesses tobacco, a craft hemp flower product, an e-liquid,
20 or an electronic cigarette on the person's person;
21 commits a Class C infraction.
22 (b) It is a defense under subsection (a) that the accused person acted
23 in the ordinary course of employment in a business concerning tobacco,
24 a craft hemp flower product, an e-liquid, or an electronic cigarette for
25 the following activities:
26 (1) Agriculture.
27 (2) Processing.
28 (3) Transporting.
29 (4) Wholesaling.
30 (5) Retailing.
31 SECTION 22. IC 35-48-1-9, AS AMENDED BY P.L.153-2018,
32 SECTION 17, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
33 JULY 1, 2025]: Sec. 9. "Controlled substance" means a drug,
34 substance, or immediate precursor in schedule I, II, III, IV, or V under:
35 (1) IC 35-48-2-4, IC 35-48-2-6, IC 35-48-2-8, IC 35-48-2-10, or
36 IC 35-48-2-12, if IC 35-48-2-14 does not apply; or
37 (2) a rule adopted by the board, if IC 35-48-2-14 applies.
38 The term does not include low THC hemp extract or a craft hemp
39 flower product.
40 SECTION 23. IC 35-48-1-9.3, AS AMENDED BY P.L.80-2019,
41 SECTION 18, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
42 JULY 1, 2025]: Sec. 9.3. (a) "Controlled substance analog" means a
SB 478—LS 6068/DI 120 36
1 substance that, due to its chemical structure and potential for abuse or
2 misuse, meets the following criteria:
3 (1) The substance is substantially similar to a controlled substance
4 classified under IC 35-48-2.
5 (2) The substance has a narcotic, stimulant, depressant, or
6 hallucinogenic effect on the central nervous system or is
7 represented or intended to have a narcotic, stimulant, depressant,
8 or hallucinogenic effect on the central nervous system
9 substantially similar to or greater than that of a controlled
10 substance classified under IC 35-48-2.
11 (b) The definition set forth in subsection (a) does not include:
12 (1) a controlled substance;
13 (2) a legend drug;
14 (3) a substance for which there is an approved new drug
15 application;
16 (4) any compound, mixture, or preparation that contains any
17 controlled substance, that is not for administration to a human
18 being or an animal, and that is packaged in a form or
19 concentration, or with adulterants or denaturants, such that as
20 packaged it does not present any significant potential for abuse;
21 or
22 (5) a substance to which an investigational exemption applies
23 under Section 505 of the federal Food, Drug and Cosmetic Act
24 (chapter 675, 52 Stat. 1052 (21 U.S.C. 355)), but only to the
25 extent that conduct with respect to the substance is pursuant to the
26 exemption; or
27 (6) low THC hemp extract; or
28 (7) a craft hemp flower product.
29 (c) For purposes of subsection (a), "substantially similar", as it
30 applies to the chemical structure of a substance, means that the
31 chemical structure of the substance, when compared to the structure of
32 a controlled substance, has a single difference in the structural formula
33 that substitutes one (1) atom or functional group for another, including:
34 (1) one (1) halogen for another halogen;
35 (2) one (1) hydrogen for a halogen;
36 (3) one (1) halogen for a hydrogen; or
37 (4) an alkyl group added or deleted:
38 (A) as a side chain to or from a molecule; or
39 (B) from a side chain of a molecule.
40 SECTION 24. IC 35-48-1-10 IS AMENDED TO READ AS
41 FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 10. (a) "Counterfeit
42 substance", for purposes of IC 35-48-4-5, means a controlled
SB 478—LS 6068/DI 120 37
1 substance which, or the container or labeling of which, without
2 authorization, bears the trademark, trade name, or other identifying
3 mark, imprint, number, or device, or any likeness thereof, of a
4 manufacturer, distributor, or dispenser other than the person who in
5 fact manufactured, distributed, or dispensed the substance.
6 (b) "Counterfeit substance", for purposes of IC 35-48-4-5.5,
7 means hemp flower or a hemp flower product which, or the
8 container or labeling of which, without authorization, bears the
9 trademark, trade name, or other identifying mark, imprint,
10 number, or device, or any likeness thereof, of a manufacturer,
11 distributor, or dispenser other than the person who in fact
12 manufactured, distributed, or dispensed the substance.
13 SECTION 25. IC 35-48-1-10.5 IS ADDED TO THE INDIANA
14 CODE AS A NEW SECTION TO READ AS FOLLOWS
15 [EFFECTIVE JULY 1, 2025]: Sec. 10.5. "Craft hemp flower
16 product" has the meaning set forth in IC 35-31.5-2-68.9.
17 SECTION 26. IC 35-48-1-16.8, AS ADDED BY P.L.153-2018,
18 SECTION 19, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
19 JULY 1, 2025]: Sec. 16.8. "Hashish" does not include:
20 (1) low THC hemp extract; or
21 (2) a craft hemp flower product.
22 SECTION 27. IC 35-48-1-17.2 IS REPEALED [EFFECTIVE JULY
23 1, 2025]. Sec. 17.2. (a) "Hemp bud" means the harvested immature
24 reproductive organ of the female hemp plant.
25 (b) The term does not include agricultural hemp seed.
26 SECTION 28. IC 35-48-1-17.3 IS REPEALED [EFFECTIVE JULY
27 1, 2025]. Sec. 17.3. (a) "Hemp flower" means the harvested
28 reproductive organ, whether immature or mature, of the female hemp
29 plant.
30 (b) The term does not include agricultural hemp seed.
31 SECTION 29. IC 35-48-1-17.5, AS AMENDED BY P.L.190-2019,
32 SECTION 28, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
33 JULY 1, 2025]: Sec. 17.5. (a) "Low THC hemp extract" means a
34 substance or compound that:
35 (1) is derived from or contains any part of the plant Cannabis
36 sativa L. that meets the definition of hemp under IC 15-15-13-6;
37 (2) contains not more than three-tenths of one percent (0.3%)
38 total delta-9-tetrahydrocannabinol (THC), including precursors,
39 by weight; and
40 (3) contains no other controlled substances.
41 (b) The term does not include:
42 (1) the harvested reproductive organ, whether immature or
SB 478—LS 6068/DI 120 38
1 mature, of the female hemp plant; or
2 (2) smokable hemp. a craft hemp flower product; or
3 (3) smokable hemp.
4 SECTION 30. IC 35-48-1-19, AS AMENDED BY P.L.190-2019,
5 SECTION 29, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
6 JULY 1, 2025]: Sec. 19. (a) "Marijuana" means any part of the plant
7 genus Cannabis whether growing or not; the seeds thereof; the resin
8 extracted from any part of the plant, including hashish and hash oil; any
9 compound, manufacture, salt, derivative, mixture, or preparation of the
10 plant, its seeds or resin.
11 (b) The term does not include:
12 (1) the mature stalks of the plant;
13 (2) fiber produced from the stalks;
14 (3) oil or cake made from the seeds of the plant;
15 (4) any other compound, manufacture, salt, derivative, mixture,
16 or preparation of the mature stalks (except the resin extracted
17 therefrom);
18 (5) the sterilized seed of the plant which is incapable of
19 germination;
20 (6) hemp (as defined by IC 15-15-13-6);
21 (7) low THC hemp extract; or
22 (8) smokable hemp. a craft hemp flower product; or
23 (9) smokable hemp.
24 SECTION 31. IC 35-48-1-26.6, AS ADDED BY P.L.190-2019,
25 SECTION 30, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
26 JULY 1, 2025]: Sec. 26.6. (a) Except as provided in subsection (b),
27 "smokable hemp" means a product plant or a part of a plant
28 containing not more than three-tenths of one percent (0.3%)
29 delta-9-tetrahydrocannabinol (THC), including precursors and
30 derivatives of THC, in a form that allows THC to be introduced into the
31 human body by inhalation of smoke. Except as provided in subsection
32 (b), the term includes craft hemp flower.
33 (1) hemp bud; and
34 (2) hemp flower.
35 (b) The term does not include a craft hemp flower product (as
36 defined by IC 35-31.5-2-68.9), or:
37 (1) a hemp plant that is; or
38 (2) parts of a hemp plant that are; or
39 (3) craft hemp flower that is;
40 grown or handled by a licensee for processing or manufacturing into a
41 legal hemp product, including a craft hemp flower product.
42 SECTION 32. IC 35-48-4-5.5 IS ADDED TO THE INDIANA
SB 478—LS 6068/DI 120 39
1 CODE AS A NEW SECTION TO READ AS FOLLOWS
2 [EFFECTIVE JULY 1, 2025]: Sec. 5.5. A person who:
3 (1) knowingly or intentionally:
4 (A) creates;
5 (B) delivers; or
6 (C) finances the delivery of;
7 a counterfeit substance; or
8 (2) possesses, with intent to:
9 (A) deliver; or
10 (B) finance the delivery of;
11 a counterfeit substance;
12 commits dealing in a counterfeit hemp substance, a Class A
13 misdemeanor. However, a person may be convicted of an offense
14 under subdivision (2) only if there is evidence in addition to the
15 weight of the counterfeit substance that the person intended to
16 deliver or finance the delivery of the counterfeit substance.
17 SECTION 33. IC 35-52-24-20.3 IS ADDED TO THE INDIANA
18 CODE AS A NEW SECTION TO READ AS FOLLOWS
19 [EFFECTIVE JULY 1, 2025]: Sec. 20.3. IC 24-4-24-8 defines a crime
20 concerning possession of craft hemp flower products.
21 SECTION 34. IC 35-52-24-20.4 IS ADDED TO THE INDIANA
22 CODE AS A NEW SECTION TO READ AS FOLLOWS
23 [EFFECTIVE JULY 1, 2025]: Sec. 20.4. IC 24-4-24-9 defines a crime
24 concerning distribution or sale of craft hemp flower products.
SB 478—LS 6068/DI 120 40
COMMITTEE REPORT
Mr. President: The Senate Committee on Commerce and
Technology, to which was referred Senate Bill No. 478, has had the
same under consideration and begs leave to report the same back to the
Senate with the recommendation that said bill be AMENDED as
follows:
Page 1, between the enacting clause and line 1, begin a new
paragraph and insert:
"SECTION 1. IC 7.1-2-3-33, AS AMENDED BY P.L.49-2020,
SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 33. The commission is authorized to:
(1) investigate a violation of; and
(2) enforce a penalty for a violation of;
IC 35-46-1-10, IC 35-46-1-10.2, IC 35-46-1-11, IC 35-46-1-11.2,
IC 35-46-1-11.4, IC 35-46-1-11.5, IC 35-46-1-11.7, or IC 35-46-1-11.8,
or IC 7.1-8.
SECTION 2. IC 7.1-2-4-1 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 1. Local Boards
Created. There is hereby created in each county a local board to be
known as the "Alcoholic Beverage and Craft Hemp Board of
__________ County.
SECTION 3. IC 7.1-2-4-3, AS AMENDED BY P.L.285-2019,
SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 3. (a) The designated member of a local board
shall meet the following requirements:
(1) The person must be an Indiana resident.
(2) The person must be familiar with Indiana alcoholic beverage
law and laws concerning craft hemp.
(3) The person may not have a conviction within ten (10) years
before the date of appointment of:
(A) a federal crime having a sentence of at least one (1) year;
(B) an Indiana Class A, Class B, or Class C felony (for a crime
committed before July 1, 2014) or a Level 1, Level 2, Level 3,
Level 4, or Level 5 felony (for a crime committed after June
30, 2014); or
(C) a crime in a state other than Indiana having a penalty equal
to the penalty for an Indiana Class A, Class B, or Class C
felony (for a crime committed before July 1, 2014) or a Level
1, Level 2, Level 3, Level 4, or Level 5 felony (for a crime
committed after June 30, 2014).
However, this subdivision does not apply to a conviction that has
SB 478—LS 6068/DI 120 41
been expunged under IC 35-38-9.
(b) The designated member may be an officer or employee of the
commission.
SECTION 4. IC 7.1-2-4-13.5, AS ADDED BY P.L.94-2008,
SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 13.5. (a) This section does not apply to a
designated member of the local board who is an employee or officer of
the commission.
(b) A local board member shall complete a training program
conducted by the commission. A local board member may not be
required to take a test or an examination or pay a fee in order to
complete the training program.
(c) The training program must include training on all the following
subjects:
(1) An overview of Indiana craft hemp laws, alcoholic beverage
law, and enforcement.
(2) Duties and responsibilities of the board concerning new
permit applications, permit transfers, and renewal of existing
permits.
(3) The open door law (IC 5-14-1.5) and the public records law
(IC 5-14-3).
(4) Notice and hearing requirements.
(5) The process for appeal of an adverse decision of the board.
(6) Any other subject determined by the commission.
(d) A local board member must complete the training program not
more than one hundred eighty (180) days after the member is appointed
to the board. A local board member who does not complete the training
program within the time allowed by this subsection shall be removed
from the board under section 21 of this chapter.".
Page 2, between lines 17 and 18, begin a new paragraph and insert;
"SECTION 5. IC 7.1-8 IS ADDED TO THE INDIANA CODE AS
A NEW ARTICLE TO READ AS FOLLOWS [EFFECTIVE JULY 1,
2025]:
ARTICLE 8. CRAFT HEMP FLOWER
Chapter. 0.5. Application
Sec. 1. Notwithstanding any other law, a retailer, distributor, or
manufacturer who was in operation before July 1, 2025, may
continue to operate without a permit issued under this article until
December 31, 2025, if the retailer, distributor, or manufacturer
complies with the other requirements of this article.
Chapter 1. Definitions
Sec. 1. As used in this article, "craft hemp" means craft hemp
SB 478—LS 6068/DI 120 42
flower product or craft hemp flower.
Sec. 2. As used in this article, "craft hemp flower" has the
meaning set forth in IC 35-31.5-2-68.8.
Sec. 3. As used in this article, "craft hemp flower product" has
the meaning set forth in IC 35-31.5-2-68.9.
Chapter 2. Craft Hemp Retail Permits
Sec. 1. (a) A person may not sell or otherwise distribute in
exchange for consideration craft hemp at retail without a valid
craft hemp permit issued by the commission.
(b) A permit may be issued only to a person who owns or
operates premises consisting of a permanent building or structure
where the craft hemp is sold or distributed.
(c) A retail permit holder may only purchase craft hemp from
a manufacturer or distributor that holds the appropriate permits.
Sec. 2. (a) A person who desires a permit must provide the
following to the commission:
(1) The applicant's name and mailing address and the address
of the premises for which the permit is being issued.
(2) A fee of one thousand dollars ($1,000) for each retail
location.
(3) The name under which the applicant transacts or intends
to transact business.
(4) The address of the applicant's principal place of business
or headquarters, if any.
(5) The statement required under section 4 of this chapter.
(6) If the applicant is applying for a new permit under section
6 of this chapter, a copy of each of the following:
(A) If the new ownership of the business is a business
entity, the articles of incorporation, articles of
organization, or any other formation documents of the
business entity.
(B) If the new ownership of the business is an individual,
either:
(i) the sales or purchase agreement; or
(ii) an affidavit signed by the applicant concerning the
sale or purchase, on a form prescribed by the
commission, that includes the name and address of the
seller and purchaser.
(C) The permit held by the previous ownership of the
business.
(b) A separate permit is required for each location where the
craft hemp products or craft hemp flower are sold or distributed.
SB 478—LS 6068/DI 120 43
A retail establishment may not hold more than one (1) active craft
hemp retail permit for a retail location at any time.
(c) A permit holder shall conspicuously display the holder's
permit on the holder's premises where the craft hemp is sold or
distributed.
(d) Any intentional misstatement or suppression of a material
fact in an application filed under this section constitutes grounds
for denial of the permit.
(e) A permit may be issued only to a person who meets the
following requirements:
(1) If the person is an individual, the person must be at least
twenty-one (21) years of age.
(2) The person must be authorized to do business in Indiana.
(3) The person has not had an interest in a permit revoked by
the commission for that business location within the preceding
one (1) year.
(f) The fees collected under this section shall be deposited in the
enforcement and administration fund under IC 7.1-4-10.
Sec. 3. (a) Subject to available resources, the commission shall
not issue a craft hemp retail permit, except as otherwise authorized
in this title and subject to the other restrictions contained in this
title, to the following persons:
(1) A person who does not have lawful status (as defined in
IC 9-13-2-92.3).
(2) A person who has been convicted within five (5) years
before the date of application of:
(A) a federal crime having a sentence of at least one (1)
year;
(B) a Level 1, Level 2, Level 3, Level 4, or Level 5 felony;
or
(C) a crime in a state other than Indiana having a penalty
equal to the penalty for an Indiana Level 1, Level 2, Level
3, Level 4, or Level 5 felony.
However, this subdivision does not apply to a conviction that
has been expunged under IC 35-38-9.
(3) A person who does not meet at least one (1) of the
following descriptions:
(A) The person owns the premises to which the permit will
be applicable.
(B) The person has a valid lease on the premises:
(i) at the time of the application for a permit; and
(ii) for the duration of the period in which the person
SB 478—LS 6068/DI 120 44
sells or distributes in the manner described in section 1
of this chapter.
(C) The person has a franchise agreement with a
franchisor:
(i) that owns the premises to which the permit will be
applicable; or
(ii) that has a bona fide lease on the premises for the full
period for which the permit is to be issued.
(4) A person whose place of business is conducted by a
manager or agent, unless the manager or agent possesses the
same qualifications required for the issuance of a craft hemp
retail permit to the person.
(5) A minor.
(6) A person non compos mentis.
(7) A person who has held a permit or permit under this title
and who has had that permit or permit revoked within one (1)
year prior to the date of application for a craft hemp retail
permit.
(8) A person who has made an application for a permit or
permit of any type under this title which has been denied less
than one (1) year prior to the person's application for a craft
hemp retail permit unless the first application was denied by
reason of a procedural or technical defect.
(b) Subsection (a)(5) does not prevent a minor from being a
stockholder in a corporation.
Sec. 4. An application for a craft hemp permit must contain the
express statement of the applicant that the applicant consents for
the duration of the permit term (if the commission issues the
permit to the applicant) to the entrance, inspection, and search by
an enforcement officer, without a warrant or other process, of the
applicant's retail premises to determine whether the applicant is
complying with the provisions of this title. The consent required by
this section is renewed and continued by the retention of a permit
or the permit's use by the applicant or the applicant's agents.
Sec. 5. (a) A permit issued by the commission under this chapter
must contain the following information:
(1) The permit number.
(2) The permit holder's name.
(3) The permanent location of the business for which the
permit is issued.
(4) The expiration date of the permit.
(b) A permit is:
SB 478—LS 6068/DI 120 45
(1) valid for one (1) year after the date of issuance, unless the
commission suspends the permit; and
(2) nontransferable.
(c) A permit may be renewed. The fee for renewing a permit is
one thousand dollars ($1,000) for each retail location.
Sec. 6. If the majority of the ownership of a business that is a
permit holder is sold or transferred:
(1) the new ownership of the business must apply for a new
permit under section 2 of this chapter; and
(2) the permit and the permit number held by the previous
ownership of the business are void ninety (90) days after the
date of the sale or transfer of the ownership of the business.
Sec. 7. The commission may adopt rules under IC 4-22-2 to
establish procedures for the issuance, renewal, and reinstatement
of a permit.
Sec. 8. (a) Subject to subsection (b), the commission may
suspend the permit of a person who fails to pay a civil penalty
imposed by the commission.
(b) Before enforcing the imposition of a civil penalty or
suspending or revoking a permit under this chapter, the
commission shall provide written notice of the alleged violation to
the permit holder and conduct a hearing. The commission shall
provide written notice of the civil penalty or suspension or
revocation of a permit to the permit holder.
(c) Subject to subsection (b), the commission shall revoke the
permit of a person upon a finding by a preponderance of the
evidence that the person:
(1) has violated IC 35-45-5-3, IC 35-45-5-3.5, IC 35-45-5-4,
IC 35-46-1-11, IC 35-46-1-11.2, IC 35-46-1-11.4, or
IC 35-46-1-11.8;
(2) has committed habitual illegal sale of craft hemp as
established under IC 35-46-1-10.2(j); or
(3) has committed habitual illegal entrance by a minor as
established under IC 35-46-1-11.7(f).
Sec. 9. (a) If a permit has:
(1) expired; or
(2) been suspended;
the commission may not reinstate or renew the permit until all civil
penalties imposed against the permit holder for violating
IC 35-46-1-10, IC 35-46-1-10.2, IC 35-46-1-11, IC 35-46-1-11.2,
IC 35-46-1-11.4, IC 35-46-1-11.5, IC 35-46-1-11.7, or
IC 35-46-1-11.8 have been paid.
SB 478—LS 6068/DI 120 46
(b) The failure to pay a civil penalty described in subsection (a)
is a Class B infraction.
(c) If a permit has been revoked, the commission may not
reinstate or renew the permit for at least one hundred eighty (180)
days after the date of revocation. The commission may reinstate or
renew the permit only upon a reasonable showing by the applicant
that the applicant shall:
(1) exercise due diligence in the sale of craft hemp on the
applicant's premises where the craft hemp is sold or
distributed; and
(2) properly supervise and train the applicant's employees or
agents in the handling and sale of craft hemp.
If a permit is reinstated or renewed, the applicant of the permit
shall pay an application fee of one thousand dollars ($1,000).
Sec. 10. A person who is required to have a permit under this
chapter and who sells or distributes craft hemp without a valid
permit commits a Class A infraction. Each violation of this section
constitutes a separate offense.
Sec. 11. The commission may mitigate civil penalties imposed
against a permit holder for violating IC 35-46-1-10,
IC 35-46-1-10.2, IC 35-46-1-11, IC 35-46-1-11.2, IC 35-46-1-11.4,
IC 35-46-1-11.5, IC 35-46-1-11.7, IC 35-46-1-11.8, or any of the
provisions of this chapter if a permit holder provides a training
program for the permit holder's employees that includes at least
the following topics:
(1) Laws governing the sale of craft hemp products and craft
hemp flower.
(2) Methods of recognizing and handling customers who are
less than twenty-one (21) years of age.
(3) Procedures for proper examination of identification cards
to verify that customers are under twenty-one (21) years of
age.
Sec. 12. A permit holder shall exercise due diligence in the
supervision and training of the permit holder's employees or agents
in the handling and sale of craft hemp products and craft hemp
flower on the holder's retail premises.
Sec. 13. (a) An employee of a permit holder must hold a valid:
(1) driver's license issued by the state of Indiana or another
state; or
(2) identification card issued by the state of Indiana, another
state, or the United States;
to sell craft hemp products.
SB 478—LS 6068/DI 120 47
(b) An employee must have the employee's driver's license or
identification card or a copy of the employee's driver's license or
identification card:
(1) either:
(A) in the employee's possession; or
(B) on file with the employee's employer; and
(2) upon request, readily available to show to an excise officer
or law enforcement;
when selling craft hemp products.
(c) If an employee holds a valid license or identification card as
described in subsection (a) but is unable to show the license,
identification card, or a copy to an excise officer under subsection
(b) because:
(1) the employee has left the license, identification card, or
copy in another location; or
(2) the license, identification card, or copy has otherwise been
lost or mislaid;
the employee may, within five (5) days of the employee's inability
to show the license, identification card, or copy to the excise officer,
produce to the excise officer or to the office of the commission
satisfactory evidence of a license or identification card issued to the
individual that was valid at the time the individual was unable to
show the license, identification card, or copy.
(d) If an employee who is unable to show a license, identification
card, or copy to an excise officer fails to produce satisfactory
evidence within five (5) days in the manner described in subsection
(c), the commission may impose a civil penalty on the permit
holder.
Sec. 14. (a) If a permit holder fails to attend or participate in a
hearing without good cause, the hearing judge may recommend to
the commission that the commission suspend or revoke the permit
holder's permit or impose a fine on the permit holder of up to one
thousand dollars ($1,000).
(b) A hearing judge may grant a continuance of a hearing upon
written motion showing good cause for the continuance.
Sec. 15. If a permit holder sells or distributes craft hemp at a
location:
(1) determined to be a public nuisance; or
(2) at which conduct or acts that are crimes or infractions
under IC 35 occur;
the commission may impose sanctions against the permit holder.
Sec. 16. This section applies to a person holding a tobacco sales
SB 478—LS 6068/DI 120 48
certificate. A person holding a tobacco sales certificate may not be
issued a craft hemp retail permit if the person has received a
violation within the previous three (3) years for any of the
following:
(1) Violating 7.1-3-18.5-11 (public nuisance).
(2) Selling tobacco person less than twenty one (21) years of
age (IC 35-46-1-10.2).
(3) Allowing a minor to enter a licensed premise (IC
35-46-1-11.7).
(4) Selling e-liquid containing vitamin E acetate
(35-46-1-11.9).
(5) Dealing in paraphernalia (35-48-4-8.5).
Chapter 3. Craft Hemp Distributor Permits
Sec. 1. (a) A person may not distribute craft hemp to a retailer
or a manufacturer without a valid craft hemp distributor permit
issued by the commission.
(b) A permit may be issued only to a person who owns or
operates premises consisting of a permanent building or structure
from which the craft hemp is distributed.
Sec. 2. (a) A person who desires a permit must provide the
following to the commission:
(1) The applicant's name and mailing address and the address
of the premises for which the permit is being issued.
(2) A fee of five thousand dollars ($5,000).
(3) The name under which the applicant transacts or intends
to transact business.
(4) The address of the applicant's principal place of business
or headquarters, if any.
(5) The statement required under section 4 of this chapter.
(6) If the applicant is applying for a new permit under section
6 of this chapter, a copy of each of the following:
(A) If the new ownership of the business is a business
entity, the articles of incorporation, articles of
organization, or any other formation documents of the
business entity.
(B) If the new ownership of the business is an individual,
either:
(i) the sales or purchase agreement; or
(ii) an affidavit signed by the applicant concerning the
sale or purchase, on a form prescribed by the
commission, that includes the name and address of the
seller and purchaser.
SB 478—LS 6068/DI 120 49
(C) The permit held by the previous ownership of the
business.
(b) A separate permit is required for each location from which
the craft hemp is distributed.
(c) A permit holder shall conspicuously display the holder's
permit on the holder's premises where the craft hemp is
distributed, and in any vehicle used for the transportation of craft
hemp.
(d) Any intentional misstatement or suppression of a material
fact in an application filed under this section constitutes grounds
for denial of the permit.
(e) A permit may be issued only to a person who meets the
following requirements:
(1) If the person is an individual, the person must be at least
twenty-one (21) years of age.
(2) The person must be authorized to do business in Indiana.
(3) The person has not had an interest in a permit revoked by
the commission for that business location within the preceding
one (1) year.
(f) The fees collected under this section shall be deposited in the
enforcement and administration fund under IC 7.1-4-10.
Sec. 3. (a) Subject to available resources, the commission shall
not issue a craft hemp distributer permit, except as otherwise
authorized in this title and subject to the other restrictions
contained in this title, to the following persons:
(1) A person who does not have lawful status (as defined in
IC 9-13-2-92.3).
(2) A person who has been convicted within five (5) years
before the date of application of:
(A) a federal crime having a sentence of at least one (1)
year;
(B) a Level 1, Level 2, Level 3, Level 4, or Level 5 felony;
or
(C) a crime in a state other than Indiana having a penalty
equal to the penalty for an Indiana Level 1, Level 2, Level
3, Level 4, or Level 5 felony.
However, this subdivision does not apply to a conviction that
has been expunged under IC 35-38-9.
(3) A person who does not meet at least one (1) of the
following descriptions:
(A) The person owns the premises to which the permit will
be applicable.
SB 478—LS 6068/DI 120 50
(B) The person has a valid lease on the premises:
(i) at the time of the application for a permit; and
(ii) for the duration of the period in which the person
sells or distributes in the manner described in section 1
of this chapter.
(C) The person has a franchise agreement with a
franchisor:
(i) that owns the premises to which the permit will be
applicable; or
(ii) that has a bona fide lease on the premises for the full
period for which the permit is to be issued.
(4) A person whose place of business is conducted by a
manager or agent, unless the manager or agent possesses the
same qualifications required for the issuance of a craft hemp
distributor permit to the person.
(5) A minor.
(6) A person non compos mentis.
(7) A person who has held a permit or permit under this title
and who has had that permit or permit revoked within one (1)
year prior to the date of application for a craft hemp permit.
(8) A person who has made an application for a permit or
permit of any type under this title which has been denied less
than one (1) year prior to the person's application for a craft
hemp distributor permit unless the first application was
denied by reason of a procedural or technical defect.
(b) Subsection (a)(5) does not prevent a minor from being a
stockholder in a corporation.
Sec. 4. An application for a craft hemp permit must contain the
express statement of the applicant that the applicant consents for
the duration of the permit term (if the commission issues the
permit to the applicant) to the entrance, inspection, and search by
an enforcement officer, without a warrant or other process, of the
applicant's premises to determine whether the applicant is
complying with the provisions of this title. The consent required by
this section is renewed and continued by the retention of a permit
or the permit's use by the applicant or the applicant's agents.
Sec. 5. (a) A permit issued by the commission under this chapter
must contain the following information:
(1) The permit number.
(2) The permit holder's name.
(3) The permanent location of the business for which the
permit is issued.
SB 478—LS 6068/DI 120 51
(4) The expiration date of the permit.
(b) A permit is:
(1) valid for one (1) year after the date of issuance, unless the
commission suspends the permit; and
(2) nontransferable.
(c) A permit may be renewed. The fee for renewing a permit is
five thousand dollars ($5,000).
Sec. 6. If the majority of the ownership of a business that is a
permit holder is sold or transferred:
(1) the new ownership of the business must apply for a new
permit under section 2 of this chapter; and
(2) the permit and the permit number held by the previous
ownership of the business are void ninety (90) days after the
date of the sale or transfer of the ownership of the business.
Sec. 7. The commission may adopt rules under IC 4-22-2 to
establish procedures for the issuance, renewal, and reinstatement
of a permit.
Sec. 8. (a) Subject to subsection (b), the commission may
suspend the permit of a person who fails to pay a civil penalty
imposed by the commission.
(b) Before enforcing the imposition of a civil penalty or
suspending or revoking a permit under this chapter, the
commission shall provide written notice of the alleged violation to
the permit holder and conduct a hearing. The commission shall
provide written notice of the civil penalty or suspension or
revocation of a permit to the permit holder.
(c) Subject to subsection (b), the commission shall revoke the
permit of a person upon a finding by a preponderance of the
evidence that the person:
(1) has violated IC 35-45-5-3, IC 35-45-5-3.5, IC 35-45-5-4,
IC 35-46-1-11, IC 35-46-1-11.2, IC 35-46-1-11.4, or
IC 35-46-1-11.8;
(2) has committed habitual illegal sale of craft hemp as
established under IC 35-46-1-10.2(j); or
(3) has committed habitual illegal entrance by a minor as
established under IC 35-46-1-11.7(f).
Sec. 9. (a) If a permit has:
(1) expired; or
(2) been suspended;
the commission may not reinstate or renew the permit until all civil
penalties imposed against the permit holder for violating
IC 35-46-1-10, IC 35-46-1-10.2, IC 35-46-1-11, IC 35-46-1-11.2,
SB 478—LS 6068/DI 120 52
IC 35-46-1-11.4, IC 35-46-1-11.5, IC 35-46-1-11.7, or
IC 35-46-1-11.8 have been paid.
(b) The failure to pay a civil penalty described in subsection (a)
is a Class B infraction.
(c) If a permit has been revoked, the commission may not
reinstate or renew the permit for at least one hundred eighty (180)
days after the date of revocation. The commission may reinstate or
renew the permit only upon a reasonable showing by the applicant
that the applicant shall:
(1) exercise due diligence in the distribution of craft hemp;
and
(2) properly supervise and train the applicant's employees or
agents in the handling and distribution of craft hemp.
If a permit is reinstated or renewed, the applicant of the permit
shall pay an application fee of one thousand dollars ($1,000).
Sec. 10. A person who is required to have a permit under this
chapter and distributes craft hemp without a valid permit commits
a Class A infraction. Each violation of this section constitutes a
separate offense.
Sec. 11. The commission may mitigate civil penalties imposed
against a permit holder for violating IC 35-46-1-10,
IC 35-46-1-10.2, IC 35-46-1-11, IC 35-46-1-11.2, IC 35-46-1-11.4,
IC 35-46-1-11.5, IC 35-46-1-11.7, IC 35-46-1-11.8, or any of the
provisions of this chapter if a permit holder provides a training
program for the permit holder's employees that includes training
in laws governing the distribution of craft hemp.
Sec. 12. A permit holder shall exercise due diligence in the
supervision and training of the permit holder's employees or agents
in the handling and distribution of craft hemp.
Sec. 13. (a) An employee of a permit holder must hold a valid:
(1) driver's license issued by the state of Indiana or another
state; or
(2) identification card issued by the state of Indiana, another
state, or the United States;
to sell craft hemp.
(b) An employee must have the employee's driver's license or
identification card or a copy of the employee's driver's license or
identification card:
(1) either:
(A) in the employee's possession; or
(B) on file with the employee's employer; and
(2) upon request, readily available to show to an excise officer
SB 478—LS 6068/DI 120 53
or law enforcement;
when selling craft hemp.
(c) If an employee holds a valid license or identification card as
described in subsection (a) but is unable to show the license,
identification card, or a copy to an excise officer under subsection
(b) because:
(1) the employee has left the license, identification card, or
copy in another location; or
(2) the license, identification card, or copy has otherwise been
lost or mislaid;
the employee may, within five (5) days of the employee's inability
to show the license, identification card, or copy to the excise officer,
produce to the excise officer or to the office of the commission
satisfactory evidence of a license or identification card issued to the
individual that was valid at the time the individual was unable to
show the license, identification card, or copy.
(d) If an employee who is unable to show a license, identification
card, or copy to an excise officer fails to produce satisfactory
evidence within five (5) days in the manner described in subsection
(c), the commission may impose a civil penalty on the permit
holder.
Sec. 14. (a) If a permit holder fails to attend or participate in a
hearing without good cause, the hearing judge may recommend to
the commission that the commission suspend or revoke the permit
holder's permit or impose a fine on the permit holder of up to one
thousand dollars ($1,000).
(b) A hearing judge may grant a continuance of a hearing upon
written motion showing good cause for the continuance.
Sec. 15. If a permit holder distributes craft hemp at a location:
(1) determined to be a public nuisance; or
(2) at which conduct or acts that are crimes or infractions
under IC 35 occur;
the commission may impose sanctions against the permit holder.
Chapter 4. Craft Hemp Manufacturer Permits
Sec. 1. (a) A person may not manufacture craft hemp without a
valid craft hemp manufacturer permit issued by the commission.
(b) A permit may be issued only to a person who owns or
operates premises consisting of a permanent building or structure
where the craft hemp is manufactured.
Sec. 2. (a) A person who desires a permit must provide the
following to the commission:
(1) The applicant's name and mailing address and the address
SB 478—LS 6068/DI 120 54
of the premises for which the permit is being issued.
(2) A fee of five thousand dollars ($5,000).
(3) The name under which the applicant transacts or intends
to transact business.
(4) The address of the applicant's principal place of business
or headquarters, if any.
(5) The statement required under section 4 of this chapter.
(6) If the applicant is applying for a new permit under section
6 of this chapter, a copy of each of the following:
(A) If the new ownership of the business is a business
entity, the articles of incorporation, articles of
organization, or any other formation documents of the
business entity.
(B) If the new ownership of the business is an individual,
either:
(i) the sales or purchase agreement; or
(ii) an affidavit signed by the applicant concerning the
sale or purchase, on a form prescribed by the
commission, that includes the name and address of the
seller and purchaser.
(C) The permit held by the previous ownership of the
business.
(b) A separate permit is required for each location where the
craft hemp is manufactured.
(c) A permit holder shall conspicuously display the holder's
permit on the holder's premises where the craft hemp is
manufactured.
(d) Any intentional misstatement or suppression of a material
fact in an application filed under this section constitutes grounds
for denial of the permit.
(e) A permit may be issued only to a person who meets the
following requirements:
(1) If the person is an individual, the person must be at least
twenty-one (21) years of age.
(2) The person must be authorized to do business in Indiana.
(3) The person has not had an interest in a permit revoked by
the commission for that business location within the preceding
one (1) year.
(f) The fees collected under this section shall be deposited in the
enforcement and administration fund under IC 7.1-4-10.
Sec. 3 (a) Subject to available resources, the commission shall
not issue a craft hemp manufacturer permit, except as otherwise
SB 478—LS 6068/DI 120 55
authorized in this title and subject to the other restrictions
contained in this title, to the following persons:
(1) A person who does not have lawful status (as defined in
IC 9-13-2-92.3).
(2) A person who has been convicted within five (5) years
before the date of application of:
(A) a federal crime having a sentence of at least one (1)
year;
(B) a Level 1, Level 2, Level 3, Level 4, or Level 5 felony;
or
(C) a crime in a state other than Indiana having a penalty
equal to the penalty for an Indiana Level 1, Level 2, Level
3, Level 4, or Level 5 felony.
However, this subdivision does not apply to a conviction that
has been expunged under IC 35-38-9.
(3) A person who does not meet at least one (1) of the
following descriptions:
(A) The person owns the premises to which the permit will
be applicable.
(B) The person has a valid lease on the premises:
(i) at the time of the application for a permit; and
(ii) for the duration of the period in which the person
manufactures in the manner described in section 1 of this
chapter.
(C) The person has a franchise agreement with a
franchisor:
(i) that owns the premises to which the permit will be
applicable; or
(ii) that has a bona fide lease on the premises for the full
period for which the permit is to be issued.
(4) A person whose place of business is conducted by a
manager or agent, unless the manager or agent possesses the
same qualifications required for the issuance of a craft hemp
manufacturer permit to the person.
(5) A minor.
(6) A person non compos mentis.
(7) A person who has held a permit or permit under this title
and who has had that permit or permit revoked within one (1)
year prior to the date of application for a craft hemp
manufacturer permit.
(8) A person who has made an application for a permit or
permit of any type under this title which has been denied less
SB 478—LS 6068/DI 120 56
than one (1) year prior to the person's application for a craft
hemp manufacturer permit unless the first application was
denied by reason of a procedural or technical defect.
(b) Subsection (a)(5) does not prevent a minor from being a
stockholder in a corporation.
Sec. 4. An application for a craft hemp permit must contain the
express statement of the applicant that the applicant consents for
the duration of the permit term (if the commission issues the
permit to the applicant) to the entrance, inspection, and search by
an enforcement officer, without a warrant or other process, of the
applicant's premises to determine whether the applicant is
complying with the provisions of this title. The consent required by
this section is renewed and continued by the retention of a permit
or the permit's use by the applicant or the applicant's agents.
Sec. 5. (a) A permit issued by the commission under this chapter
must contain the following information:
(1) The permit number.
(2) The permit holder's name.
(3) The permanent location of the business for which the
permit is issued.
(4) The expiration date of the permit.
(b) A permit is:
(1) valid for one (1) year after the date of issuance, unless the
commission suspends the permit; and
(2) nontransferable.
(c) A permit may be renewed. The fee for renewing a permit is
five thousand dollars ($5,000).
Sec. 6. If the majority of the ownership of a business that is a
permit holder is sold or transferred:
(1) the new ownership of the business must apply for a new
permit under section 2 of this chapter; and
(2) the permit and the permit number held by the previous
ownership of the business are void ninety (90) days after the
date of the sale or transfer of the ownership of the business.
Sec. 7. The commission may adopt rules under IC 4-22-2 to
establish procedures for the issuance, renewal, and reinstatement
of a permit.
Sec. 8. (a) Subject to subsection (b), the commission may
suspend the permit of a person who fails to pay a civil penalty
imposed by the commission.
(b) Before enforcing the imposition of a civil penalty or
suspending or revoking a permit under this chapter, the
SB 478—LS 6068/DI 120 57
commission shall provide written notice of the alleged violation to
the permit holder and conduct a hearing. The commission shall
provide written notice of the civil penalty or suspension or
revocation of a permit to the permit holder.
(c) Subject to subsection (b), the commission shall revoke the
permit of a person upon a finding by a preponderance of the
evidence that the person:
(1) has violated IC 35-45-5-3, IC 35-45-5-3.5, IC 35-45-5-4,
IC 35-46-1-11, IC 35-46-1-11.2, IC 35-46-1-11.4, or
IC 35-46-1-11.8;
(2) has committed habitual illegal sale of craft hemp as
established under IC 35-46-1-10.2(j); or
(3) has committed habitual illegal entrance by a minor as
established under IC 35-46-1-11.7(f).
Sec. 9. (a) If a permit has:
(1) expired; or
(2) been suspended;
the commission may not reinstate or renew the permit until all civil
penalties imposed against the permit holder for violating
IC 35-46-1-10, IC 35-46-1-10.2, IC 35-46-1-11, IC 35-46-1-11.2,
IC 35-46-1-11.4, IC 35-46-1-11.5, IC 35-46-1-11.7, or
IC 35-46-1-11.8 have been paid.
(b) The failure to pay a civil penalty described in subsection (a)
is a Class B infraction.
(c) If a permit has been revoked, the commission may not
reinstate or renew the permit for at least one hundred eighty (180)
days after the date of revocation. The commission may reinstate or
renew the permit only upon a reasonable showing by the applicant
that the applicant shall:
(1) exercise due diligence in the distribution of craft hemp;
and
(2) properly supervise and train the applicant's employees or
agents in the handling and distribution of craft hemp.
If a permit is reinstated or renewed, the applicant of the permit
shall pay an application fee of one thousand dollars ($1,000).
Sec. 10. A person who is required to have a permit under this
chapter and manufactures craft hemp without a valid permit
commits a Class A infraction. Each violation of this section
constitutes a separate offense.
Sec. 11. The commission may mitigate civil penalties imposed
against a permit holder for violating IC 35-46-1-10,
IC 35-46-1-10.2, IC 35-46-1-11, IC 35-46-1-11.2, IC 35-46-1-11.4,
SB 478—LS 6068/DI 120 58
IC 35-46-1-11.5, IC 35-46-1-11.7, IC 35-46-1-11.8, or any of the
provisions of this chapter if a permit holder provides a training
program for the permit holder's employees that includes training
in laws governing the distribution of craft hemp.
Sec. 12. A permit holder shall exercise due diligence in the
supervision and training of the permit holder's employees or agents
in the handling and distribution of craft hemp.
Sec. 13. (a) An employee of a permit holder must hold a valid:
(1) driver's license issued by the state of Indiana or another
state; or
(2) identification card issued by the state of Indiana, another
state, or the United States;
to sell craft hemp.
(b) An employee must have the employee's driver's license or
identification card or a copy of the employee's driver's license or
identification card:
(1) either:
(A) in the employee's possession; or
(B) on file with the employee's employer; and
(2) upon request, readily available to show to an excise officer
or law enforcement;
when selling craft hemp.
(c) If an employee holds a valid license or identification card as
described in subsection (a) but is unable to show the license,
identification card, or a copy to an excise officer under subsection
(b) because:
(1) the employee has left the license, identification card, or
copy in another location; or
(2) the license, identification card, or copy has otherwise been
lost or mislaid;
the employee may, within five (5) days of the employee's inability
to show the license, identification card, or copy to the excise officer,
produce to the excise officer or to the office of the commission
satisfactory evidence of a license or identification card issued to the
individual that was valid at the time the individual was unable to
show the license, identification card, or copy.
(d) If an employee who is unable to show a license, identification
card, or copy to an excise officer fails to produce satisfactory
evidence within five (5) days in the manner described in subsection
(c), the commission may impose a civil penalty on the permit
holder.
Sec. 14. (a) If a permit holder fails to attend or participate in a
SB 478—LS 6068/DI 120 59
hearing without good cause, the hearing judge may recommend to
the commission that the commission suspend or revoke the permit
holder's permit or impose a fine on the permit holder of up to one
thousand dollars ($1,000).
(b) A hearing judge may grant a continuance of a hearing upon
written motion showing good cause for the continuance.
Sec. 15. If a permit holder manufactures craft hemp at a
location:
(1) determined to be a public nuisance; or
(2) at which conduct or acts that are crimes or infractions
under IC 35 occur;
the commission may impose sanctions against the permit holder.
Chapter 5. Retail Establishments
Sec. 1. A craft hemp retail establishment must keep the craft
hemp behind a bar or in a location to which a purchaser does not
have access. If a person purchases craft hemp, an employee of the
retail establishment shall remove the craft hemp from behind the
bar or from the inaccessible location and deliver it to the
purchaser.
Sec. 2. A retail establishment may not permit consumption of
craft hemp on the premises of the retail establishment.
Sec. 3. A retail establishment that does not have a tobacco sales
certificate may not permit a person less than twenty-one (21) years
of age on the premises.
Chapter 6. Manufacturing Facilities
Sec. 1. A craft hemp manufacturer must submit any proposed
craft hemp packaging to the commission for preapproval before
delivering or causing delivery of craft hemp to a retail
establishment.".
Page 17, between lines 20 and 21, begin a new paragraph and insert:
"SECTION 19. IC 35-48-1-10 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 10. (a) "Counterfeit
substance", for purposes of IC 35-48-4-5, means a controlled
substance which, or the container or labeling of which, without
authorization, bears the trademark, trade name, or other identifying
mark, imprint, number, or device, or any likeness thereof, of a
manufacturer, distributor, or dispenser other than the person who in
fact manufactured, distributed, or dispensed the substance.
(b) "Counterfeit substance", for purposes of IC 35-48-4-5.5,
means hemp flower or a hemp flower product which, or the
container or labeling of which, without authorization, bears the
trademark, trade name, or other identifying mark, imprint,
SB 478—LS 6068/DI 120 60
number, or device, or any likeness thereof, of a manufacturer,
distributor, or dispenser other than the person who in fact
manufactured, distributed, or dispensed the substance.".
Page 19, between lines 7 and 8, begin a new paragraph and insert:
"SECTION 7. IC 35-48-4-5.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2025]: Sec. 5.5. A person who:
(1) knowingly or intentionally:
(A) creates;
(B) delivers; or
(C) finances the delivery of;
a counterfeit substance; or
(2) possesses, with intent to:
(A) deliver; or
(B) finance the delivery of;
a counterfeit substance;
commits dealing in a counterfeit hemp substance, a Class A
misdemeanor. However, a person may be convicted of an offense
under subdivision (2) only if there is evidence in addition to the
weight of the counterfeit substance that the person intended to
deliver or finance the delivery of the counterfeit substance.".
Renumber all SECTIONS consecutively.
and when so amended that said bill do pass and be reassigned to the
Senate Committee on Tax and Fiscal Policy.
(Reference is to SB 478 as introduced.)
BUCHANAN, Chairperson
Committee Vote: Yeas 8, Nays 2.
SB 478—LS 6068/DI 120