Indiana Senate Bill SB0478 Engrossed / Bill

                    *SB0478.3*
Reprinted
February 14, 2025
SENATE BILL No. 478
_____
DIGEST OF SB 478 (Updated February 13, 2025 4:41 pm - DI 107)
Citations Affected:  IC 7.1-2; IC 7.1-3; IC 7.1-7; 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 and THC 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 
(Continued next page)
Effective:  July 1, 2025.
Holdman, Garten, Baldwin, Bassler,
Walker K, Pol Jr., Clark, Donato,
Hunley, Ford J.D., Doriot, Alting,
Randolph Lonnie M, Busch
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.
February 11, 2025, amended, reported favorably — Do Pass.
February 13, 2025, read second time, amended, ordered engrossed.
SB 478—LS 6068/DI 120 Digest Continued
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. Provides that
it is a Class C infraction for a person less than 21 years of age to
purchase, accept, or possess a product that contains THC. Establishes
a regulatory framework for craft hemp, including the regulation of
advertising. Provides that certain retailers may not sell craft hemp
flower products if the retailer is located near a school. Changes certain
references of delta 9 THC to THC. Provides that e-liquid does not
include low THC hemp extract for purposes of the vapor pens and
e-liquid article. Defines terms. Makes conforming changes. Makes
technical corrections.
SB 478—LS 6068/DI 120SB 478—LS 6068/DI 120 Reprinted
February 14, 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
SB 478—LS 6068/DI 120 3
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 7.1-7-2-10, AS AMENDED BY P.L.206-2017,
39 SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
40 JULY 1, 2025]: Sec. 10. (a) Except as provided in subsection (b),
41 "E-liquid" means a substance that:
42 (1) may or may not contain nicotine; and
SB 478—LS 6068/DI 120 4
1 (2) is intended to be vaporized and inhaled using a vapor product.
2 (b) The term does not include a low THC hemp extract as
3 defined in IC 35-48-1-17.5.
4 SECTION 8. IC 7.1-8 IS ADDED TO THE INDIANA CODE AS A
5 NEW ARTICLE TO READ AS FOLLOWS [EFFECTIVE JULY 1,
6 2025]:
7 ARTICLE 8. CRAFT HEMP FLOWER
8 Chapter. 0.5. Application
9 Sec. 1. Notwithstanding any other law, a retailer, distributor, or
10 manufacturer who was in operation before July 1, 2025, may
11 continue to operate without a permit issued under this article until
12 December 31, 2025, if the retailer, distributor, or manufacturer
13 applies for a permit to sell, distribute, or manufacture craft hemp
14 by December 31, 2025.
15 Chapter 1. Definitions
16 Sec. 1. As used in this article, "craft hemp" means craft hemp
17 flower product, craft hemp flower, or low THC hemp extract.
18 Sec. 2. As used in this article, "craft hemp flower" has the
19 meaning set forth in IC 35-31.5-2-68.8.
20 Sec. 3. As used in this article, "craft hemp flower product" has
21 the meaning set forth in IC 35-31.5-2-68.9.
22 Sec. 4. As used in this article, "low THC hemp extract" has the
23 meaning set forth in IC 35-48-1-17.5.
24 Chapter 2. Craft Hemp Retail Permits
25 Sec. 1. (a) A person may not sell or otherwise distribute in
26 exchange for consideration craft hemp at retail without a valid
27 craft hemp permit issued by the commission.
28 (b) A permit may be issued only to a person who owns or
29 operates premises consisting of a permanent building or structure
30 where the craft hemp is sold or distributed.
31 (c) A retail permit holder may only purchase craft hemp from
32 a manufacturer or distributor that holds the appropriate permits.
33 Sec. 2. (a) A person who desires a permit must provide the
34 following to the commission:
35 (1) The applicant's name and mailing address and the address
36 of the premises for which the permit is being issued.
37 (2) A fee of one thousand dollars ($1,000) for each retail
38 location.
39 (3) The name under which the applicant transacts or intends
40 to transact business.
41 (4) The address of the applicant's principal place of business
42 or headquarters, if any.
SB 478—LS 6068/DI 120 5
1 (5) The statement required under section 4 of this chapter.
2 (6) If the applicant is applying for a new permit under section
3 6 of this chapter, a copy of each of the following:
4 (A) If the new ownership of the business is a business
5 entity, the articles of incorporation, articles of
6 organization, or any other formation documents of the
7 business entity.
8 (B) If the new ownership of the business is an individual,
9 either:
10 (i) the sales or purchase agreement; or
11 (ii) an affidavit signed by the applicant concerning the
12 sale or purchase, on a form prescribed by the
13 commission, that includes the name and address of the
14 seller and purchaser.
15 (C) The permit held by the previous ownership of the
16 business.
17 (b) A separate permit is required for each location where the
18 craft hemp products or craft hemp flower are sold or distributed.
19 A retail establishment may not hold more than one (1) active craft
20 hemp retail permit for a retail location at any time.
21 (c) A permit holder shall conspicuously display the holder's
22 permit on the holder's premises where the craft hemp is sold or
23 distributed.
24 (d) Any intentional misstatement or suppression of a material
25 fact in an application filed under this section constitutes grounds
26 for denial of the permit.
27 (e) A permit may be issued only to a person who meets the
28 following requirements:
29 (1) If the person is an individual, the person must be at least
30 twenty-one (21) years of age.
31 (2) The person must be authorized to do business in Indiana.
32 (3) The person has not had an interest in a permit revoked by
33 the commission for that business location within the preceding
34 one (1) year.
35 (f) The fees collected under this section shall be deposited in the
36 enforcement and administration fund under IC 7.1-4-10.
37 Sec. 3. (a) Subject to available resources, the commission shall
38 not issue a craft hemp retail permit, except as otherwise authorized
39 in this title and subject to the other restrictions contained in this
40 title, to the following persons:
41 (1) A person who does not have lawful status (as defined in
42 IC 9-13-2-92.3).
SB 478—LS 6068/DI 120 6
1 (2) A person who has been convicted within five (5) years
2 before the date of application of:
3 (A) a federal crime having a sentence of at least one (1)
4 year;
5 (B) a Level 1, Level 2, Level 3, Level 4, or Level 5 felony;
6 or
7 (C) a crime in a state other than Indiana having a penalty
8 equal to the penalty for an Indiana Level 1, Level 2, Level
9 3, Level 4, or Level 5 felony.
10 However, this subdivision does not apply to a conviction that
11 has been expunged under IC 35-38-9.
12 (3) A person who does not meet at least one (1) of the
13 following descriptions:
14 (A) The person owns the premises to which the permit will
15 be applicable.
16 (B) The person has a valid lease on the premises:
17 (i) at the time of the application for a permit; and
18 (ii) for the duration of the period in which the person
19 sells or distributes in the manner described in section 1
20 of this chapter.
21 (C) The person has a franchise agreement with a
22 franchisor:
23 (i) that owns the premises to which the permit will be
24 applicable; or
25 (ii) that has a bona fide lease on the premises for the full
26 period for which the permit is to be issued.
27 (4) A person whose place of business is conducted by a
28 manager or agent, unless the manager or agent possesses the
29 same qualifications required for the issuance of a craft hemp
30 retail permit to the person.
31 (5) A minor.
32 (6) A person non compos mentis.
33 (7) A person who has held a permit or permit under this title
34 and who has had that permit or permit revoked within one (1)
35 year prior to the date of application for a craft hemp retail
36 permit.
37 (8) A person who has made an application for a permit or
38 permit of any type under this title which has been denied less
39 than one (1) year prior to the person's application for a craft
40 hemp retail permit unless the first application was denied by
41 reason of a procedural or technical defect.
42 (b) Subsection (a)(5) does not prevent a minor from being a
SB 478—LS 6068/DI 120 7
1 stockholder in a corporation.
2 Sec. 4. An application for a craft hemp permit must contain the
3 express statement of the applicant that the applicant consents for
4 the duration of the permit term (if the commission issues the
5 permit to the applicant) to the entrance, inspection, and search by
6 an enforcement officer, without a warrant or other process, of the
7 applicant's retail premises to determine whether the applicant is
8 complying with the provisions of this title. The consent required by
9 this section is renewed and continued by the retention of a permit
10 or the permit's use by the applicant or the applicant's agents.
11 Sec. 5. (a) A permit issued by the commission under this chapter
12 must contain the following information:
13 (1) The permit number.
14 (2) The permit holder's name.
15 (3) The permanent location of the business for which the
16 permit is issued.
17 (4) The expiration date of the permit.
18 (b) A permit is:
19 (1) valid for one (1) year after the date of issuance, unless the
20 commission suspends the permit; and
21 (2) nontransferable.
22 (c) A permit may be renewed. The fee for renewing a permit is
23 one thousand dollars ($1,000) for each retail location.
24 Sec. 6. If the majority of the ownership of a business that is a
25 permit holder is sold or transferred:
26 (1) the new ownership of the business must apply for a new
27 permit under section 2 of this chapter; and
28 (2) the permit and the permit number held by the previous
29 ownership of the business are void ninety (90) days after the
30 date of the sale or transfer of the ownership of the business.
31 Sec. 7. The commission may adopt rules under IC 4-22-2 to
32 establish procedures for the issuance, renewal, and reinstatement
33 of a permit.
34 Sec. 8. (a) Subject to subsection (b), the commission may
35 suspend the permit of a person who fails to pay a civil penalty
36 imposed by the commission.
37 (b) Before enforcing the imposition of a civil penalty or
38 suspending or revoking a permit under this chapter, the
39 commission shall provide written notice of the alleged violation to
40 the permit holder and conduct a hearing. The commission shall
41 provide written notice of the civil penalty or suspension or
42 revocation of a permit to the permit holder.
SB 478—LS 6068/DI 120 8
1 (c) Subject to subsection (b), the commission shall revoke the
2 permit of a person upon a finding by a preponderance of the
3 evidence that the person:
4 (1) has violated IC 35-45-5-3, IC 35-45-5-3.5, IC 35-45-5-4,
5 IC 35-46-1-11, IC 35-46-1-11.2, IC 35-46-1-11.4, or
6 IC 35-46-1-11.8;
7 (2) has committed habitual illegal sale of craft hemp as
8 established under IC 35-46-1-10.2(j); or
9 (3) has committed habitual illegal entrance by a minor as
10 established under IC 35-46-1-11.7(f).
11 Sec. 9. (a) If a permit has:
12 (1) expired; or
13 (2) been suspended;
14 the commission may not reinstate or renew the permit until all civil
15 penalties imposed against the permit holder for violating
16 IC 35-46-1-10, IC 35-46-1-10.2, IC 35-46-1-11, IC 35-46-1-11.2,
17 IC 35-46-1-11.4, IC 35-46-1-11.5, IC 35-46-1-11.7, or
18 IC 35-46-1-11.8 have been paid.
19 (b) The failure to pay a civil penalty described in subsection (a)
20 is a Class B infraction.
21 (c) If a permit has been revoked, the commission may not
22 reinstate or renew the permit for at least one hundred eighty (180)
23 days after the date of revocation. The commission may reinstate or
24 renew the permit only upon a reasonable showing by the applicant
25 that the applicant shall:
26 (1) exercise due diligence in the sale of craft hemp on the
27 applicant's premises where the craft hemp is sold or
28 distributed; and
29 (2) properly supervise and train the applicant's employees or
30 agents in the handling and sale of craft hemp.
31 If a permit is reinstated or renewed, the applicant of the permit
32 shall pay an application fee of one thousand dollars ($1,000).
33 Sec. 10. A person who is required to have a permit under this
34 chapter and who sells or distributes craft hemp without a valid
35 permit commits a Class A infraction. Each violation of this section
36 constitutes a separate offense.
37 Sec. 11. The commission may mitigate civil penalties imposed
38 against a permit holder for violating IC 35-46-1-10,
39 IC 35-46-1-10.2, IC 35-46-1-11, IC 35-46-1-11.2, IC 35-46-1-11.4,
40 IC 35-46-1-11.5, IC 35-46-1-11.7, IC 35-46-1-11.8, or any of the
41 provisions of this chapter if a permit holder provides a training
42 program for the permit holder's employees that includes at least
SB 478—LS 6068/DI 120 9
1 the following topics:
2 (1) Laws governing the sale of craft hemp products and craft
3 hemp flower.
4 (2) Methods of recognizing and handling customers who are
5 less than twenty-one (21) years of age.
6 (3) Procedures for proper examination of identification cards
7 to verify that customers are under twenty-one (21) years of
8 age.
9 Sec. 12. A permit holder shall exercise due diligence in the
10 supervision and training of the permit holder's employees or agents
11 in the handling and sale of craft hemp products and craft hemp
12 flower on the holder's retail premises.
13 Sec. 13. (a) An employee of a permit holder must hold a valid:
14 (1) driver's license issued by the state of Indiana or another
15 state; or
16 (2) identification card issued by the state of Indiana, another
17 state, or the United States;
18 to sell craft hemp products.
19 (b) An employee must have the employee's driver's license or
20 identification card or a copy of the employee's driver's license or
21 identification card:
22 (1) either:
23 (A) in the employee's possession; or
24 (B) on file with the employee's employer; and
25 (2) upon request, readily available to show to an excise officer
26 or law enforcement;
27 when selling craft hemp products.
28 (c) If an employee holds a valid license or identification card as
29 described in subsection (a) but is unable to show the license,
30 identification card, or a copy to an excise officer under subsection
31 (b) because:
32 (1) the employee has left the license, identification card, or
33 copy in another location; or
34 (2) the license, identification card, or copy has otherwise been
35 lost or mislaid;
36 the employee may, within five (5) days of the employee's inability
37 to show the license, identification card, or copy to the excise officer,
38 produce to the excise officer or to the office of the commission
39 satisfactory evidence of a license or identification card issued to the
40 individual that was valid at the time the individual was unable to
41 show the license, identification card, or copy.
42 (d) If an employee who is unable to show a license, identification
SB 478—LS 6068/DI 120 10
1 card, or copy to an excise officer fails to produce satisfactory
2 evidence within five (5) days in the manner described in subsection
3 (c), the commission may impose a civil penalty on the permit
4 holder.
5 Sec. 14. (a) If a permit holder fails to attend or participate in a
6 hearing without good cause, the hearing judge may recommend to
7 the commission that the commission suspend or revoke the permit
8 holder's permit or impose a fine on the permit holder of up to one
9 thousand dollars ($1,000).
10 (b) A hearing judge may grant a continuance of a hearing upon
11 written motion showing good cause for the continuance.
12 Sec. 15. If a permit holder sells or distributes craft hemp at a
13 location:
14 (1) determined to be a public nuisance; or
15 (2) at which conduct or acts that are crimes or infractions
16 under IC 35 occur;
17 the commission may impose sanctions against the permit holder.
18 Sec. 16. This section applies to a person holding a tobacco sales
19 certificate. A person holding a tobacco sales certificate may not be
20 issued a craft hemp retail permit if the person has received a
21 violation within the previous three (3) years for any of the
22 following:
23 (1) Violating 7.1-3-18.5-11 (public nuisance).
24 (2) Selling tobacco person less than twenty one (21) years of
25 age (IC 35-46-1-10.2).
26 (3) Allowing a minor to enter a licensed premise
27 (IC 35-46-1-11.7).
28 (4) Selling e-liquid containing vitamin E acetate
29 (35-46-1-11.9).
30 (5) Dealing in paraphernalia (35-48-4-8.5).
31 Sec. 17. (a) A retail location may not sell craft hemp flower
32 products if the retail location is within one thousand (1,000) feet of
33 a private school, public school, or charter school that includes any
34 grade from kindergarten through grade 12.
35 (b) If a retailer provides the commission with documentation
36 that establishes that craft hemp flower products were offered for
37 sale at a retail location before January 1, 2025, the retail location
38 may sell craft hemp flower products even if it is within one
39 thousand (1,000) feet of a school.
40 Chapter 3. Craft Hemp Distributor Permits
41 Sec. 1. (a) A person may not distribute craft hemp to a retailer
42 or a manufacturer without a valid craft hemp distributor permit
SB 478—LS 6068/DI 120 11
1 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 from which the craft hemp is distributed.
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 from which
31 the craft hemp is distributed.
32 (c) A permit holder shall conspicuously display the holder's
33 permit on the holder's premises where the craft hemp is
34 distributed, and in any vehicle used for the transportation of craft
35 hemp.
36 (d) Any intentional misstatement or suppression of a material
37 fact in an application filed under this section constitutes grounds
38 for denial of the permit.
39 (e) A permit may be issued only to a person who meets the
40 following requirements:
41 (1) If the person is an individual, the person must be at least
42 twenty-one (21) years of age.
SB 478—LS 6068/DI 120 12
1 (2) The person must be authorized to do business in Indiana.
2 (3) The person has not had an interest in a permit revoked by
3 the commission for that business location within the preceding
4 one (1) year.
5 (f) The fees collected under this section shall be deposited in the
6 enforcement and administration fund under IC 7.1-4-10.
7 Sec. 3. (a) Subject to available resources, the commission shall
8 not issue a craft hemp distributer permit, except as otherwise
9 authorized in this title and subject to the other restrictions
10 contained in this title, to the following persons:
11 (1) A person who does not have lawful status (as defined in
12 IC 9-13-2-92.3).
13 (2) A person who has been convicted within five (5) years
14 before the date of application of:
15 (A) a federal crime having a sentence of at least one (1)
16 year;
17 (B) a Level 1, Level 2, Level 3, Level 4, or Level 5 felony;
18 or
19 (C) a crime in a state other than Indiana having a penalty
20 equal to the penalty for an Indiana Level 1, Level 2, Level
21 3, Level 4, or Level 5 felony.
22 However, this subdivision does not apply to a conviction that
23 has been expunged under IC 35-38-9.
24 (3) A person who does not meet at least one (1) of the
25 following descriptions:
26 (A) The person owns the premises to which the permit will
27 be applicable.
28 (B) The person has a valid lease on the premises:
29 (i) at the time of the application for a permit; and
30 (ii) for the duration of the period in which the person
31 sells or distributes in the manner described in section 1
32 of this chapter.
33 (C) The person has a franchise agreement with a
34 franchisor:
35 (i) that owns the premises to which the permit will be
36 applicable; or
37 (ii) that has a bona fide lease on the premises for the full
38 period for which the permit is to be issued.
39 (4) A person whose place of business is conducted by a
40 manager or agent, unless the manager or agent possesses the
41 same qualifications required for the issuance of a craft hemp
42 distributor permit to the person.
SB 478—LS 6068/DI 120 13
1 (5) A minor.
2 (6) A person non compos mentis.
3 (7) A person who has held a permit or permit under this title
4 and who has had that permit or permit revoked within one (1)
5 year prior to the date of application for a craft hemp 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 distributor 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 14
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 15
1 Sec. 10. A person who is required to have a permit under this
2 chapter and distributes craft hemp without a valid permit commits
3 a Class A infraction. Each violation of this section constitutes a
4 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 16
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 distributes craft hemp at a location:
15 (1) determined to be a public nuisance; or
16 (2) at which conduct or acts that are crimes or infractions
17 under IC 35 occur;
18 the commission may impose sanctions against the permit holder.
19 Chapter 4. Craft Hemp Manufacturer Permits
20 Sec. 1. (a) A person may not manufacture craft hemp without a
21 valid craft hemp manufacturer permit issued by the commission.
22 (b) A permit may be issued only to a person who owns or
23 operates premises consisting of a permanent building or structure
24 where the craft hemp is manufactured.
25 Sec. 2. (a) A person who desires a permit must provide the
26 following to the commission:
27 (1) The applicant's name and mailing address and the address
28 of the premises for which the permit is being issued.
29 (2) A fee of five thousand dollars ($5,000).
30 (3) The name under which the applicant transacts or intends
31 to transact business.
32 (4) The address of the applicant's principal place of business
33 or headquarters, if any.
34 (5) The statement required under section 4 of this chapter.
35 (6) If the applicant is applying for a new permit under section
36 6 of this chapter, a copy of each of the following:
37 (A) If the new ownership of the business is a business
38 entity, the articles of incorporation, articles of
39 organization, or any other formation documents of the
40 business entity.
41 (B) If the new ownership of the business is an individual,
42 either:
SB 478—LS 6068/DI 120 17
1 (i) the sales or purchase agreement; or
2 (ii) an affidavit signed by the applicant concerning the
3 sale or purchase, on a form prescribed by the
4 commission, that includes the name and address of the
5 seller and purchaser.
6 (C) The permit held by the previous ownership of the
7 business.
8 (b) A separate permit is required for each location where the
9 craft hemp is manufactured.
10 (c) A permit holder shall conspicuously display the holder's
11 permit on the holder's premises where the craft hemp is
12 manufactured.
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 manufacturer permit, except as otherwise
28 authorized in this title and subject to the other restrictions
29 contained in this 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 18
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 manufactures in the manner described in section 1 of this
9 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 manufacturer 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
25 manufacturer 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 manufacturer permit unless the first application was
30 denied by 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 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
SB 478—LS 6068/DI 120 19
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 five thousand dollars ($5,000).
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 20
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 distribution of craft hemp;
16 and
17 (2) properly supervise and train the applicant's employees or
18 agents in the handling and distribution of craft hemp.
19 If a permit is reinstated or renewed, the applicant of the permit
20 shall pay an application fee of one thousand dollars ($1,000).
21 Sec. 10. A person who is required to have a permit under this
22 chapter and manufactures craft hemp without a valid permit
23 commits a Class A infraction. Each violation of this section
24 constitutes a separate offense.
25 Sec. 11. The commission may mitigate civil penalties imposed
26 against a permit holder for violating IC 35-46-1-10,
27 IC 35-46-1-10.2, IC 35-46-1-11, IC 35-46-1-11.2, IC 35-46-1-11.4,
28 IC 35-46-1-11.5, IC 35-46-1-11.7, IC 35-46-1-11.8, or any of the
29 provisions of this chapter if a permit holder provides a training
30 program for the permit holder's employees that includes training
31 in laws governing the distribution of craft hemp.
32 Sec. 12. A permit holder shall exercise due diligence in the
33 supervision and training of the permit holder's employees or agents
34 in the handling and distribution of craft hemp.
35 Sec. 13. (a) An employee of a permit holder must hold a valid:
36 (1) driver's license issued by the state of Indiana or another
37 state; or
38 (2) identification card issued by the state of Indiana, another
39 state, or the United States;
40 to sell craft hemp.
41 (b) An employee must have the employee's driver's license or
42 identification card or a copy of the employee's driver's license or
SB 478—LS 6068/DI 120 21
1 identification card:
2 (1) either:
3 (A) in the employee's possession; or
4 (B) on file with the employee's employer; and
5 (2) upon request, readily available to show to an excise officer
6 or law enforcement;
7 when selling craft hemp.
8 (c) If an employee holds a valid license or identification card as
9 described in subsection (a) but is unable to show the license,
10 identification card, or a copy to an excise officer under subsection
11 (b) because:
12 (1) the employee has left the license, identification card, or
13 copy in another location; or
14 (2) the license, identification card, or copy has otherwise been
15 lost or mislaid;
16 the employee may, within five (5) days of the employee's inability
17 to show the license, identification card, or copy to the excise officer,
18 produce to the excise officer or to the office of the commission
19 satisfactory evidence of a license or identification card issued to the
20 individual that was valid at the time the individual was unable to
21 show the license, identification card, or copy.
22 (d) If an employee who is unable to show a license, identification
23 card, or copy to an excise officer fails to produce satisfactory
24 evidence within five (5) days in the manner described in subsection
25 (c), the commission may impose a civil penalty on the permit
26 holder.
27 Sec. 14. (a) If a permit holder fails to attend or participate in a
28 hearing without good cause, the hearing judge may recommend to
29 the commission that the commission suspend or revoke the permit
30 holder's permit or impose a fine on the permit holder of up to one
31 thousand dollars ($1,000).
32 (b) A hearing judge may grant a continuance of a hearing upon
33 written motion showing good cause for the continuance.
34 Sec. 15. If a permit holder manufactures craft hemp at a
35 location:
36 (1) determined to be a public nuisance; or
37 (2) at which conduct or acts that are crimes or infractions
38 under IC 35 occur;
39 the commission may impose sanctions against the permit holder.
40 Chapter 5. Retail Establishments
41 Sec. 1. (a) Except as provided in subsection (b), a craft hemp
42 retail establishment must keep the craft hemp behind a bar or in
SB 478—LS 6068/DI 120 22
1 a location to which a purchaser does not have access. If a person
2 purchases craft hemp, an employee of the retail establishment shall
3 remove the craft hemp from behind the bar or from the
4 inaccessible location and deliver it to the purchaser.
5 (b) This subsection does not apply to the holder of a liquor
6 dealer's permit issued under IC 7.1-3-10-4 that is also a craft retail
7 hemp establishment.
8 Sec. 2. A retail establishment may not permit consumption of
9 craft hemp on the premises of the retail establishment.
10 Sec. 3. A retail establishment that does not have a tobacco sales
11 certificate may not permit a person less than twenty-one (21) years
12 of age on the premises.
13 Chapter 6. Manufacturing Facilities
14 Sec. 1. A craft hemp manufacturer must submit any proposed
15 craft hemp packaging to the commission for preapproval before
16 delivering or causing delivery of craft hemp to a retail
17 establishment.
18 Chapter 7. Advertising
19 Sec. 1. As used in this chapter, "advertise" or "advertising"
20 means the publication, dissemination, solicitation, or circulation of
21 visual, oral, or written communication to directly induce any
22 person to purchase or consume craft hemp. The term includes the
23 promotion of special pricing, sales, or discounts on craft hemp. The
24 term does not include branding, marketing, or packaging and
25 labeling of craft hemp or information regarding special pricing,
26 sales, or discounts on display inside a retail establishment.
27 Sec. 2. As used in this chapter, "billboard" means a sign that
28 directs attention to a business, commodity, service, entertainment,
29 or attraction that is sold, is offered, or that exists in a place other
30 than the same premises where the sign is displayed.
31 Sec. 3. As used in this chapter, "brand" or "branding" means
32 creating a unique identity for a business to target an audience or
33 a consumer. Branding does not include references to specific
34 products.
35 Sec. 4. As used in this chapter, "commercial mascot" means a
36 live human being, animal, or mechanical device used for attracting
37 the attention of motorists and passersby so as to make them aware
38 of craft hemp or the presence of a permittee. Commercial mascots
39 include inflatable tube displays, persons in costume, or persons
40 wearing, holding, or spinning a sign with a commercial message or
41 image related to craft hemp, where the intent is to draw attention
42 to a permittee or its products.
SB 478—LS 6068/DI 120 23
1 Sec. 5. As used in this chapter, "electronic advertising" means
2 advertising that takes place on the Internet, including on the
3 website of a permittee, on a web application, and on a social media
4 platform.
5 Sec. 6. As used in this chapter, "market" or "marketing" means
6 an action a business uses to promote its brand, location, or services.
7 The term does not include references to specific products.
8 Sec. 7. As used in this chapter, "permittee" means a person who
9 holds a permit issued under this article.
10 Sec. 8. (a) A permittee may use advertising to promote its
11 business and market its brand.
12 (b) Except as provided in subsection (c), a permittee may not
13 advertise craft hemp.
14 (c) A permittee may use electronic advertising to promote craft
15 hemp.
16 Sec. 9. The following apply to an outdoor sign on the premises
17 of a permittee:
18 (1) A permittee may use the term "craft hemp", "craft hemp
19 flower", or "craft hemp flower product" in its outdoor
20 signage.
21 (2) A permittee's outdoor signage may not do any of the
22 following:
23 (A) Use the terms "marijuana" or "cannabis".
24 (B) Use a colloquial terms for marijuana or marijuana
25 products, such as pot, reefer, or weed.
26 (C) Display an image or visual representation of craft
27 hemp, marijuana, or paraphernalia, or an image that
28 indicates the presence of a product such as smoke, edibles,
29 or gummies.
30 (D) Indicate the presence of a particular compound of craft
31 hemp, such as THC, delta-8, delta-10, or THCA.
32 (3) A permittee's outdoor signage must comply with any
33 applicable local ordinances or regulations relating to signs.
34 Sec. 10. (a) A permittee that maintains a web page must require
35 an individual to affirmatively indicate that the individual is at least
36 twenty-one (21) years of age before accessing the content of the
37 web page.
38 (b) The social media account of a permittee that advertises craft
39 hemp must be private and must contain a clearly visible notice on
40 the main page stating that only individuals at least twenty-one (21)
41 years of age may follow the account.
42 (c) A permittee that uses a QR code in an electronic
SB 478—LS 6068/DI 120 24
1 advertisement must require an individual to affirmatively indicate
2 that the individual is at least twenty-one (21) years of age before
3 accessing the content of the site accessed by the QR code.
4 Sec. 11. A permittee may not do any of the following:
5 (1) Engage in advertising via marketing directed towards
6 location based devices, including cellular telephones, unless a
7 user affirmatively opts in to receiving push notifications
8 related to craft hemp.
9 (2) Use unsolicited pop up or push to advertising on the
10 Internet.
11 (3) Advertise on television, on radio, or in print, including
12 newspapers, magazines, flyers, and mailers. However, a
13 permittee may make use of informational pamphlets or
14 business cards for dissemination at a craft hemp trade
15 conference.
16 (4) Engage in advertising or use signage that asserts that its
17 products are safe. However, a permittee may state that its
18 products have been tested by an independent laboratory as
19 required by law.
20 (5) Use a billboard.
21 (6) Use items such as toys or inflatables, movie or cartoon
22 characters, or any other depiction or image likely to be
23 appealing to children, if the item, image, or depiction suggest
24 an intent to cause children to become interested in the
25 purchase or consumption of craft hemp.
26 (7) Use or employ a commercial mascot outside of, and in
27 proximity to, a permitted business.
28 SECTION 9. IC 15-15-13-6.7 IS ADDED TO THE INDIANA
29 CODE AS A NEW SECTION TO READ AS FOLLOWS
30 [EFFECTIVE JULY 1, 2025]: Sec. 6.7. As used in this chapter,
31 "work in progress hemp extract" means a compound:
32 (1) derived from hemp;
33 (2) intended to be processed into a hemp product;
34 (3) in a partially processed state;
35 (4) having a concentration of delta-9 THC that exceeds
36 three-tenths of one percent (0.3%) by dry weight; and
37 (5) not marketed for consumer use or consumption.
38 SECTION 10. IC 15-15-13-11, AS AMENDED BY P.L.190-2019,
39 SECTION 12, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
40 JULY 1, 2025]: Sec. 11. Only a hemp licensee, the licensee's designee,
41 or the licensee's agents may be permitted to transport hemp or work in
42 progress hemp extract off a production site. When transporting hemp
SB 478—LS 6068/DI 120 25
1 or work in progress hemp extract off the production site, the hemp
2 licensee, designee, or agent shall have in the licensee's, designee's, or
3 agent's possession the licensing documents from the state seed
4 commissioner evidencing that the hemp or work in progress hemp
5 extract is from certified seed produced by a licensed grower.
6 SECTION 11. IC 15-15-13-11.5 IS ADDED TO THE INDIANA
7 CODE AS A NEW SECTION TO READ AS FOLLOWS
8 [EFFECTIVE JULY 1, 2025]: Sec. 11.5. (a) Subject to subsection (b),
9 a handler holding a valid license under this chapter may possess,
10 manufacture, store, transport, or sell work in progress hemp
11 extract.
12 (b) Work in progress hemp extract may be sold only to a:
13 (1) handler holding a valid license under this chapter; or
14 (2) person holding a valid hemp or cannabis license in another
15 jurisdiction.
16 SECTION 12. IC 15-15-13-19, AS ADDED BY P.L.190-2019,
17 SECTION 20, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
18 JULY 1, 2025]: Sec. 19. (a) Hemp bud (as defined in IC 35-48-1-17.2)
19 and hemp flower (as defined in IC 35-48-1-17.3) Craft hemp flower
20 (as defined by IC 35-31.5-2-68.8) may be transported or sold
21 intrastate only to a processor licensed under this chapter for
22 processing or manufacturing into a legal hemp product, including
23 a craft hemp flower product (as defined by IC 35-31.5-2-68.9).
24 (b) Craft hemp flower may be sold and transported interstate in
25 accordance with section 11 of this chapter.
26 (b) (c) The state seed commissioner may impose a civil penalty
27 under section 13 of this chapter for a violation of subsection (a).
28 SECTION 13. IC 16-42-2-2 IS AMENDED TO READ AS
29 FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 2. (a) A food is
30 considered adulterated under any of the following conditions:
31 (1) If the food bears or contains any poisonous or deleterious
32 substance that may make the food injurious to health. However,
33 if the substance is not an added substance, the food is not to be
34 considered adulterated under this subdivision if the quantity of the
35 substance in the food does not ordinarily make the food injurious
36 to health.
37 (2) If:
38 (A) the food bears or contains any added poison or added
39 deleterious substance (other than a poison or a deleterious
40 substance that is a pesticide chemical in or on a raw
41 agricultural commodity, a food additive, or a color additive)
42 that is unsafe within the meaning of section 5 of this chapter;
SB 478—LS 6068/DI 120 26
1 (B) the food is a raw agricultural commodity and the food
2 bears or contains a pesticide chemical that is unsafe under
3 section 5 of this chapter; or
4 (C) the food is or contains a food additive that is unsafe under
5 section 5 of this chapter.
6 However, when a pesticide chemical is used in or on a raw
7 agricultural commodity in conformity with an exemption granted
8 or tolerance prescribed under section 5 of this chapter and the raw
9 agricultural commodity has been subjected to processing such as
10 canning, cooking, freezing, dehydrating, or milling, the residue of
11 the pesticide chemical remaining in or on the processed food,
12 notwithstanding section 5 of this chapter and clause (C) is not
13 considered unsafe if the residue in or on the raw agricultural
14 commodity has been removed to the extent possible in good
15 manufacturing practice, and the concentration of the residues in
16 the processed food, when ready to eat, is not greater than the
17 tolerance prescribed for the raw agricultural commodity.
18 (3) If the food consists in whole or in part of a diseased,
19 contaminated, filthy, putrid, or decomposed substance or if the
20 food is otherwise unfit for food.
21 (4) If the food has been produced, transported, handled, prepared,
22 packed, or held under unsanitary conditions or in unsanitary
23 containers as the result of which the food may have become
24 contaminated with filth or made diseased, unwholesome, or
25 injurious to health.
26 (5) If the food is, in whole or in part, the product of:
27 (A) a diseased animal;
28 (B) an animal that has died otherwise than by slaughter; or
29 (C) an animal that has been fed upon the uncooked offal from
30 a slaughterhouse.
31 (6) If the food's container is composed in whole or in part of any
32 poisonous or deleterious substance that may make the contents
33 injurious to health.
34 (7) If the food has been intentionally subjected to radiation, unless
35 the use of the radiation was in conformity with a rule or an
36 exemption in effect under section 5 of this chapter.
37 (8) If any valuable constituent has been in whole or in part
38 omitted or abstracted from the food.
39 (9) If any substance has been substituted wholly or in part.
40 (10) If damage or inferiority has been concealed in any manner.
41 (11) If any substance has been added to the food or mixed or
42 packed with the food to:
SB 478—LS 6068/DI 120 27
1 (A) increase the food's bulk or weight;
2 (B) reduce the food's quality or strength;
3 (C) make the food appear better or of greater value than the
4 food is; or
5 (D) create a deceptive appearance.
6 (12) If the food bears or contains a coal-tar color other than one
7 from a batch that has been certified by the federal Food and Drug
8 Administrator, as provided by regulations promulgated under
9 authority of the Federal Act.
10 (13) If the food is a confectionery and has partially or completely
11 imbedded embedded in the food any nonnutritive object.
12 However, this subdivision does not apply in the case of any
13 nonnutritive object if, in the judgment of the state department as
14 provided by rules, the nonnutritive object is of practical,
15 functional value to the confectionery product and would not make
16 the product injurious or hazardous to health.
17 (14) If the food is a confectionery and bears or contains any
18 alcohol other than alcohol not in excess of one-half of one percent
19 (0.5%) by volume derived solely from the use of flavoring
20 extracts.
21 (15) If the food is a confectionery and bears or contains any
22 nonnutritive substance. However, this subdivision does not apply
23 to a safe, nonnutritive substance if:
24 (A) the nonnutritive substance is in or on a confectionery for
25 a practical, functional purpose in the manufacture, packaging,
26 or storing of the confectionery; and
27 (B) the use of the substance does not promote deception of the
28 consumer or otherwise result in adulteration or misbranding in
29 violation of any provision of IC 16-42-1 through IC 16-42-4.
30 In addition, the state department may, for the purpose of
31 avoiding or resolving uncertainty as to the application of this
32 subdivision, adopt rules allowing or prohibiting the use of
33 particular nonnutritive substances.
34 (16) If the food falls below the standard of purity, quality, or
35 strength that the food purports or is represented to possess.
36 (17) If the food is or bears or contains any color additive that is
37 unsafe under section 5 of this chapter.
38 (b) Subsection (a)(8) and (a)(9) do not prohibit:
39 (1) the removal of butterfat from; or
40 (2) the addition of skim milk to;
41 dairy products that comply with the definitions and standards for dairy
42 products adopted by the state department.
SB 478—LS 6068/DI 120 28
1 (c) A food is not considered adulterated for containing low THC
2 hemp extract (as defined in IC 35-48-1-17.5) or craft hemp flower
3 (as defined in IC 35-31.5-2-68.8).
4 SECTION 14. IC 24-4-21-3, AS AMENDED BY P.L.190-2019,
5 SECTION 24, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
6 JULY 1, 2025]: Sec. 3. A person may distribute low THC hemp extract
7 in Indiana only if the distributor has a certificate of analysis prepared
8 by an independent testing laboratory showing:
9 (1) that the low THC hemp extract is the product of a batch tested
10 by the independent testing laboratory;
11 (2) that the independent testing laboratory determined that the
12 batch contained not more than three-tenths percent (0.3%) total
13 delta-9-tetrahydrocannabinol (THC), tetrahydrocannabinol
14 (THC), including precursors of THC, by weight or volume,
15 based on the testing of a random sample of the batch; and
16 (3) the cannabidiol percent present of the low THC hemp extract.
17 SECTION 15. IC 24-4-21-4, AS ADDED BY P.L.153-2018,
18 SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
19 JULY 1, 2025]: Sec. 4. (a) Except as provided in subsection (b), low
20 THC hemp extract must be distributed in packaging that contains the
21 following information:
22 (1) A scannable bar code or QR code linked to a document that
23 contains information with respect to the manufacture of the low
24 THC hemp extract, including the:
25 (A) batch identification number;
26 (B) product name;
27 (C) batch date;
28 (D) expiration date, which must be not more than two (2) years
29 from the date of manufacture;
30 (E) batch size;
31 (F) total quantity produced;
32 (G) ingredients used, including the:
33 (i) ingredient name;
34 (ii) name of the company that manufactured the ingredient;
35 (iii) company or product identification number or code, if
36 applicable; and
37 (iv) ingredient lot number; and
38 (H) download link for a certificate of analysis for the low THC
39 hemp extract.
40 (2) The batch number.
41 (3) The Internet address of a web site website to obtain batch
42 information.
SB 478—LS 6068/DI 120 29
1 (4) The expiration date.
2 (5) The number of milligrams of low THC hemp extract.
3 (6) The manufacturer.
4 (7) The fact that the product contains not more than three-tenths
5 of one percent (0.3%) total delta-9-tetrahydrocannabinol (THC),
6 tetrahydrocannabinol (THC), including precursors, by weight
7 or volume.
8 (b) Before July 1, 2018, low THC hemp extract may be distributed
9 in Indiana without having met the requirements described in subsection
10 (a).
11 (b) After June 30, 2025, the packaging of low THC hemp extract
12 may not:
13 (1) contain any statement, artwork, or design that could
14 reasonably mislead any person to believe that the package
15 contains anything other than low THC hemp extract; or
16 (2) bear an unauthorized trademark, trade name, famous
17 mark, or other identifying mark, imprint, or device, or any
18 likeness thereof.
19 SECTION 16. IC 24-4-22-3, AS ADDED BY P.L.153-2018,
20 SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
21 JULY 1, 2025]: Sec. 3. (a) Except as provided in subsection (b), A
22 person may sell low THC hemp extract at retail only if the packaging
23 complies with the requirements of IC 24-4-21-4.
24 (b) Before July 1, 2018, a person may sell low THC hemp extract at
25 retail even if the packaging does not comply with the requirements of
26 IC 24-4-21-4.
27 (b) Beginning July 1, 2025, no low THC hemp extract may be
28 distributed, sold, or offered for sale at retail or online to a person
29 who is less than twenty-one (21) years of age.
30 (c) Any website owned, managed, or operated by a person who
31 distributes or sells a low THC hemp extract directly to consumers
32 must verify a consumer's age by either using a reliable online age
33 verification service, or by obtaining and examining a copy of a
34 government issued identification, prior to completing a purchase.
35 (d) A person who violates this section is subject to a civil penalty
36 not to exceed the following:
37 (1) One thousand dollars ($1,000) for a first violation.
38 (2) Five thousand dollars ($5,000) for a second violation that
39 occurs within two (2) years after a first violation, and
40 suspension of the retail dealer's certificate for up to six (6)
41 months.
42 (3) Ten thousand dollars ($10,000) for each subsequent
SB 478—LS 6068/DI 120 30
1 violation that occurs within two (2) years of the preceding
2 violation, and revocation of the retail dealer's certificate, with
3 a one (1) year waiting period for reapplication.
4 (e) It is a defense to a violation under this section that the
5 distributor or seller examined the purchaser's or recipient's
6 driver's license, or other valid government issued identification,
7 that positively identified the purchaser or recipient as being at least
8 twenty-one (21) years of age.
9 SECTION 17. IC 24-4-24 IS ADDED TO THE INDIANA CODE
10 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
11 JULY 1, 2025]:
12 Chapter 24. Distribution of Craft Hemp Flower Products
13 Sec. 1. As used in this chapter, "certificate of analysis" means
14 a certificate from an independent testing laboratory describing the
15 results of the laboratory's testing of a sample.
16 Sec. 2. As used in this chapter, "craft hemp flower product" has
17 the meaning set forth in IC 35-31.5-2-68.9.
18 Sec. 3. As used in this chapter, "independent testing laboratory"
19 means a laboratory:
20 (1) with respect to which no person having a direct or indirect
21 interest in the laboratory also has a direct or indirect interest
22 in a facility that:
23 (A) processes, distributes, or sells a craft hemp flower
24 product, or a substantially similar substance in another
25 jurisdiction;
26 (B) cultivates, processes, distributes, dispenses, or sells
27 marijuana;
28 (C) cultivates, processes, or distributes hemp; or
29 (D) processes, distributes, or sells low THC hemp extract
30 (as defined in IC 35-48-1-17.5); and
31 (2) that is accredited as a testing laboratory under
32 International Organization for Standardization (ISO) 17025
33 by a third party accrediting body such as the American
34 Association for Laboratory Accreditation (A2LA) or Assured
35 Calibration and Laboratory Accreditation Select Services
36 (ACLASS).
37 Sec. 4. As used in this chapter, "tamper evident packaging"
38 means a package having at least one (1) indicator or a barrier to
39 entry that, if breached or missing, can reasonably be expected to
40 provide visible evidence to consumers that tampering has occurred.
41 Sec. 5. (a) Before a person may distribute a craft hemp flower
42 product, the distributor must have a certificate of analysis
SB 478—LS 6068/DI 120 31
1 prepared by an independent testing laboratory showing the
2 following:
3 (1) That the craft hemp flower product is the product of a
4 batch tested by the independent testing laboratory.
5 (2) That the independent testing laboratory determined that
6 the batch contained not more than three-tenths of one percent
7 (0.3%) tetrahydrocannabinol (THC), including precursors, by
8 weight or volume, based on the testing of a random sample of
9 the batch.
10 (3) That the batch has been tested for and does not exceed the
11 acceptable levels set forth under section 7 of this chapter for
12 the following contaminants:
13 (A) Heavy metals, including cadmium, lead, arsenic, and
14 mercury.
15 (B) Pesticides.
16 (C) Herbicides.
17 (D) Mycotoxins.
18 (E) Bacterial toxins.
19 (F) Chemical solvent residues.
20 (4) The potency of the craft hemp flower product, including
21 the projected percentage of:
22 (A) THC;
23 (B) cannabidiol; and
24 (C) other cannabinoids in the craft hemp flower product;
25 by weight or volume.
26 (b) Each batch of a craft hemp flower product submitted to an
27 independent testing laboratory under this section must have been
28 harvested at the same time and cultivated in a contiguous area in
29 the same field or facility.
30 Sec. 6. A craft hemp flower product must be distributed in
31 tamper evident packaging that contains the following information:
32 (1) A scannable bar code or QR code linked to a document
33 that contains information with respect to the craft hemp
34 flower product, including the:
35 (A) batch identification number;
36 (B) product name;
37 (C) batch date;
38 (D) expiration date, which must be not more than two (2)
39 years from the date of harvest;
40 (E) batch size;
41 (F) total quantity produced;
42 (G) ingredients used, including the:
SB 478—LS 6068/DI 120 32
1 (i) ingredient name;
2 (ii) name of the company that manufactured the
3 ingredient;
4 (iii) company or product identification number or code,
5 if applicable; and
6 (iv) ingredient lot number; and
7 (H) download link for a certificate of analysis for the craft
8 hemp flower product.
9 (2) The batch identification number.
10 (3) The address of a website to obtain batch information.
11 (4) The expiration date, which must be not more than two (2)
12 years from the date of harvest.
13 (5) The number of grams of craft hemp flower (as defined by
14 IC 35-31.5-2-68.8) contained in the craft hemp flower product.
15 (6) The facility that produced the craft hemp flower product.
16 (7) The fact that the product contains not more than
17 three-tenths of one percent (0.3%) tetrahydrocannabinol
18 (THC), including precursors, by weight or volume.
19 Sec. 7. A craft hemp flower product may not be distributed if a
20 certificate of analysis prepared by an independent testing
21 laboratory shows any of the following:
22 (1) A concentration of metals that is more than any of the
23 following:
24 (A) Four-tenths (0.4) part per million of cadmium.
25 (B) Five-tenths (0.5) part per million of lead.
26 (C) Four-tenths (0.4) part per million of arsenic.
27 (D) Two-tenths (0.2) part per million of mercury.
28 (2) A concentration of microbiological units that is more than
29 any of the following:
30 (A) One (1) colony forming unit per gram of Shiga-Toxin
31 Escherichia coli.
32 (B) One (1) colony forming unit per gram of Salmonella
33 spp.
34 (C) Ten thousand (10,000) colony forming units of
35 culturable mold.
36 (3) A concentration of residual solvents and chemicals that is
37 not more than any of the following:
38 (A) Five thousand (5,000) parts per million of butane.
39 (B) Two (2) parts per million of benzene.
40 (C) Five thousand (5,000) parts per million of heptane.
41 (D) Two hundred ninety (290) parts per million of hexane.
42 (E) Eight hundred ninety (890) parts per million of toluene.
SB 478—LS 6068/DI 120 33
1 (F) One (1) part per million of total xylenes, including
2 ortho-xylene, meta-xylene, and para-xylene.
3 Sec. 8. (a) A person in a motor vehicle who, while the motor
4 vehicle is in operation or the motor vehicle is located on the
5 right-of-way of a public highway (as defined in IC 9-25-2-4),
6 knowingly or intentionally possesses a container that contains a
7 craft hemp flower product, and:
8 (1) the container does not have tamper evident packaging; or
9 (2) the tamper evident packaging has a broken seal;
10 commits a Class C misdemeanor.
11 (b) A violation of this section is not considered a moving traffic
12 violation:
13 (1) for purposes of IC 9-14-12-3; and
14 (2) for which points are assessed by the bureau of motor
15 vehicles under the point system.
16 Sec. 9. (a) A person who knowingly or intentionally distributes
17 or sells a craft hemp flower product in violation of this chapter
18 commits a Class B misdemeanor. However, the offense is a Class
19 A misdemeanor if the person has a prior unrelated conviction for
20 a violation of this chapter.
21 (b) The penalties in this section are in addition to any criminal
22 penalties that may be imposed for unlawful possession or
23 distribution of a controlled substance.
24 SECTION 18. IC 35-31.5-2-68.8 IS ADDED TO THE INDIANA
25 CODE AS A NEW SECTION TO READ AS FOLLOWS
26 [EFFECTIVE JULY 1, 2025]: Sec. 68.8. (a) "Craft hemp flower"
27 means the harvested reproductive organ, whether immature or
28 mature, of the female Cannabis sativa L. plant containing not more
29 than three-tenths of one percent (0.3%) of tetrahydrocannabinol
30 (THC), including precursors of THC, by weight or volume, in a
31 form that is intended to allow THC to be introduced into the
32 human body by inhalation of smoke.
33 (b) The term does not include agricultural hemp seed (as defined
34 in IC 15-15-13-2).
35 SECTION 19. IC 35-31.5-2-68.9 IS ADDED TO THE INDIANA
36 CODE AS A NEW SECTION TO READ AS FOLLOWS
37 [EFFECTIVE JULY 1, 2025]: Sec. 68.9. "Craft hemp flower
38 product" means a substance or product for sale to consumers that:
39 (1) is derived from or contains any part of craft hemp flower;
40 (2) contains not more than three-tenths of one percent (0.3%)
41 of tetrahydrocannabinol (THC), including precursors of THC,
42 by weight or volume;
SB 478—LS 6068/DI 120 34
1 (3) contains no other controlled substances; and
2 (4) is in the form of:
3 (A) a gummy;
4 (B) an edible;
5 (C) a drink;
6 (D) a tincture; or
7 (E) an e-liquid in a tamper evident container.
8 The term does not include smokable hemp.
9 SECTION 20. IC 35-31.5-2-100, AS AMENDED BY P.L.49-2020,
10 SECTION 25, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
11 JULY 1, 2025]: Sec. 100. (a) "Distribute", for purposes of
12 IC 35-45-4-8, has the meaning set forth in IC 35-45-4-8.
13 (b) "Distribute", for purposes of IC 35-46-1-10, has the meaning set
14 forth in IC 35-46-1-10(f). IC 35-46-1-10(a).
15 (c) "Distribute", for purposes of IC 35-46-1-10.2, has the meaning
16 set forth in IC 35-46-1-10.2(g). IC 35-46-1-10.2(a).
17 (d) "Distribute", for purposes of IC 35-47.5, has the meaning set
18 forth in IC 35-47.5-2-6.
19 (e) "Distribute", for purposes of IC 35-48, has the meaning set forth
20 in IC 35-48-1-14.
21 (f) "Distribute", for purposes of IC 35-49, has the meaning set forth
22 in IC 35-49-1-2.
23 SECTION 21. IC 35-31.5-2-189.9, AS ADDED BY P.L.153-2018,
24 SECTION 14, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
25 JULY 1, 2025]: Sec. 189.9. "Low THC hemp extract", for purposes of
26 IC 35-46 and IC 35-48, has the meaning set forth in IC 35-48-1-17.5.
27 SECTION 22. IC 35-46-1-10, AS AMENDED BY P.L.32-2021,
28 SECTION 97, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
29 JULY 1, 2025]: Sec. 10. (a) As used in this section, "distribute"
30 means to give tobacco, a craft hemp flower product, an e-liquid, or
31 an electronic cigarette to another person as a means of promoting,
32 advertising, or marketing the tobacco, craft hemp flower product,
33 e-liquid, or electronic cigarette to the general public.
34 (a) (b) A person may not be charged with a violation under this
35 section and a violation under IC 7.1-7-6-5.
36 (b) (c) A person who knowingly:
37 (1) sells or distributes tobacco, a craft hemp flower product, an
38 e-liquid, or an electronic cigarette to a person less than
39 twenty-one (21) years of age; or
40 (2) purchases tobacco, a craft hemp flower product, an e-liquid,
41 or an electronic cigarette for delivery to another person who is
42 less than twenty-one (21) years of age;
SB 478—LS 6068/DI 120 35
1 commits a Class C infraction. For a sale to take place under this
2 section, the buyer must pay the seller for the tobacco, craft hemp
3 flower product, e-liquid, or electronic cigarette.
4 (c) (d) It is not a defense that the person to whom the tobacco, craft
5 hemp flower product, e-liquid, or electronic cigarette was sold or
6 distributed did not smoke, chew, inhale, or otherwise consume the
7 tobacco, craft hemp flower product, e-liquid, or electronic cigarette.
8 (d) (e) The following defenses are available to a person accused of
9 selling or distributing tobacco, a craft hemp flower product, an
10 e-liquid, or an electronic cigarette to a person who is less than
11 twenty-one (21) years of age:
12 (1) The buyer or recipient produced a driver's license bearing the
13 purchaser's or recipient's photograph, showing that the purchaser
14 or recipient was of legal age to make the purchase.
15 (2) The buyer or recipient produced a photographic identification
16 card issued under IC 9-24-16-1, or a similar card issued under the
17 laws of another state or the federal government, showing that the
18 purchaser or recipient was of legal age to make the purchase.
19 (3) The appearance of the purchaser or recipient was such that an
20 ordinary prudent person would believe that the purchaser or
21 recipient was not less than thirty (30) years of age.
22 (e) (f) It is a defense that the accused person sold or delivered the
23 tobacco, craft hemp flower product, e-liquid, or electronic cigarette
24 to a person who acted in the ordinary course of employment or a
25 business concerning tobacco, a craft hemp flower product, an
26 e-liquid, or electronic cigarettes including the following activities:
27 (1) Agriculture.
28 (2) Processing.
29 (3) Transporting.
30 (4) Wholesaling.
31 (5) Retailing.
32 (f) As used in this section, "distribute" means to give tobacco, an
33 e-liquid, or an electronic cigarette to another person as a means of
34 promoting, advertising, or marketing the tobacco, e-liquid, or electronic
35 cigarette to the general public.
36 (g) Unless the person buys or receives tobacco, a craft hemp
37 flower product, an e-liquid, or an electronic cigarette under the
38 direction of a law enforcement officer as part of an enforcement action,
39 a person who sells or distributes tobacco, a craft hemp flower
40 product, an e-liquid, or an electronic cigarette is not liable for a
41 violation of this section unless the person less than twenty-one (21)
42 years of age who bought or received the tobacco, craft hemp flower
SB 478—LS 6068/DI 120 36
1 product, e-liquid, or electronic cigarette is issued a citation or
2 summons under section 10.5 of this chapter.
3 (h) Notwithstanding IC 34-28-5-5(c), civil penalties collected under
4 this section must be deposited in the Richard D. Doyle youth tobacco
5 education and enforcement fund (IC 7.1-6-2-6).
6 SECTION 23. IC 35-46-1-10.2, AS AMENDED BY P.L.32-2021,
7 SECTION 98, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
8 JULY 1, 2025]: Sec. 10.2. (a) As used in this section, "distribute"
9 means to give tobacco, a craft hemp flower product, an e-liquid, or
10 an electronic cigarette to another person as a means of promoting,
11 advertising, or marketing the tobacco, craft hemp flower product,
12 e-liquid, or electronic cigarette to the general public.
13 (a) (b) A person may not be charged with a violation under this
14 section and a violation under IC 7.1-7-6-5.
15 (b) (c) A retail establishment that sells or distributes tobacco, a
16 craft hemp flower product, an e-liquid, or an electronic cigarette to
17 a person less than twenty-one (21) years of age commits a Class C
18 infraction. For a sale to take place under this section, the buyer must
19 pay the retail establishment for the tobacco, craft hemp flower
20 product, e-liquid, or electronic cigarette.
21 (c) (d) Notwithstanding IC 34-28-5-4(c), a civil judgment for an
22 infraction committed under this section must be imposed as follows:
23 (1) If the retail establishment at that specific business location has
24 not been issued a citation or summons for a violation of this
25 section in the previous one (1) year, a civil penalty of up to four
26 hundred dollars ($400).
27 (2) If the retail establishment at that specific business location has
28 had one (1) citation or summons issued for a violation of this
29 section in the previous one (1) year, a civil penalty of up to eight
30 hundred dollars ($800).
31 (3) If the retail establishment at that specific business location has
32 had two (2) citations or summonses issued for a violation of this
33 section in the previous one (1) year, a civil penalty of up to one
34 thousand four hundred dollars ($1,400).
35 (4) If the retail establishment at that specific business location has
36 had three (3) or more citations or summonses issued for a
37 violation of this section in the previous one (1) year, a civil
38 penalty of up to two thousand dollars ($2,000).
39 A retail establishment may not be issued a citation or summons for a
40 violation of this section more than once every twenty-four (24) hours
41 for each specific business location.
42 (d) (e) It is not a defense that the person to whom the tobacco, craft
SB 478—LS 6068/DI 120 37
1 hemp flower product, e-liquid, or electronic cigarette was sold or
2 distributed did not smoke, chew, inhale, or otherwise consume the
3 tobacco, craft hemp flower product, e-liquid, or electronic cigarette.
4 (e) (f) The following defenses are available to a retail establishment
5 accused of selling or distributing tobacco, a craft hemp flower
6 product, an e-liquid, or an electronic cigarette to a person who is less
7 than twenty-one (21) years of age:
8 (1) The buyer or recipient produced a driver's license bearing the
9 purchaser's or recipient's photograph showing that the purchaser
10 or recipient was of legal age to make the purchase.
11 (2) The buyer or recipient produced a photographic identification
12 card issued under IC 9-24-16-1 or a similar card issued under the
13 laws of another state or the federal government showing that the
14 purchaser or recipient was of legal age to make the purchase.
15 (3) The appearance of the purchaser or recipient was such that an
16 ordinary prudent person would believe that the purchaser or
17 recipient was not less than thirty (30) years of age.
18 (f) (g) It is a defense that the accused retail establishment sold or
19 delivered the tobacco, craft hemp flower product, e-liquid, or
20 electronic cigarette to a person who acted in the ordinary course of
21 employment or a business concerning tobacco, a craft hemp flower
22 product, an e-liquid, or electronic cigarettes for the following
23 activities:
24 (1) Agriculture.
25 (2) Processing.
26 (3) Transporting.
27 (4) Wholesaling.
28 (5) Retailing.
29 (g) As used in this section, "distribute" means to give tobacco, an
30 e-liquid, or an electronic cigarette to another person as a means of
31 promoting, advertising, or marketing the tobacco or electronic cigarette
32 to the general public.
33 (h) Unless a person buys or receives tobacco, a craft hemp flower
34 product, an e-liquid, or an electronic cigarette under the direction of
35 a law enforcement officer as part of an enforcement action, a retail
36 establishment that sells or distributes tobacco, a craft hemp flower
37 product, an e-liquid, or an electronic cigarette is not liable for a
38 violation of this section unless the person less than twenty-one (21)
39 years of age who bought or received the tobacco, craft hemp flower
40 product, e-liquid, or electronic cigarette is issued a citation or
41 summons under section 10.5 of this chapter.
42 (i) Notwithstanding IC 34-28-5-5(c), civil penalties collected under
SB 478—LS 6068/DI 120 38
1 this section must be deposited in the Richard D. Doyle youth tobacco
2 education and enforcement fund (IC 7.1-6-2-6).
3 (j) A person who violates subsection (b) (c) at least six (6) times in
4 any one (1) year commits habitual illegal sale of tobacco, sales, a Class
5 B infraction.
6 SECTION 24. IC 35-46-1-10.5, AS AMENDED BY P.L.49-2020,
7 SECTION 32, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
8 JULY 1, 2025]: Sec. 10.5. (a) A person less than twenty-one (21) years
9 of age who:
10 (1) purchases tobacco, an e-liquid, or an electronic cigarette;
11 (2) accepts tobacco, an e-liquid, or an electronic cigarette for
12 personal use; or
13 (3) possesses tobacco, an e-liquid, or an electronic cigarette on
14 the person's person;
15 commits a Class C infraction.
16 (b) It is a defense under subsection (a) that the accused person acted
17 in the ordinary course of employment in a business concerning tobacco,
18 an e-liquid, or an electronic cigarette for the following activities:
19 (1) Agriculture.
20 (2) Processing.
21 (3) Transporting.
22 (4) Wholesaling.
23 (5) Retailing.
24 (c) A person less than twenty-one (21) years of age who:
25 (1) purchases a product that contains THC, including low
26 THC hemp extract, craft hemp flower, or a craft hemp flower
27 product;
28 (2) accepts a product that contains THC, including low THC
29 hemp extract, craft hemp flower, or a craft hemp flower
30 product, for personal use; or
31 (3) possesses a product that contains THC, including low THC
32 hemp extract, craft hemp flower, or a craft hemp flower
33 product, on the person's person;
34 commits a Class C infraction.
35 SECTION 25. IC 35-48-1-9, AS AMENDED BY P.L.153-2018,
36 SECTION 17, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
37 JULY 1, 2025]: Sec. 9. "Controlled substance" means a drug,
38 substance, or immediate precursor in schedule I, II, III, IV, or V under:
39 (1) IC 35-48-2-4, IC 35-48-2-6, IC 35-48-2-8, IC 35-48-2-10, or
40 IC 35-48-2-12, if IC 35-48-2-14 does not apply; or
41 (2) a rule adopted by the board, if IC 35-48-2-14 applies.
42 The term does not include low THC hemp extract or a craft hemp
SB 478—LS 6068/DI 120 39
1 flower product.
2 SECTION 26. IC 35-48-1-9.3, AS AMENDED BY P.L.80-2019,
3 SECTION 18, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
4 JULY 1, 2025]: Sec. 9.3. (a) "Controlled substance analog" means a
5 substance that, due to its chemical structure and potential for abuse or
6 misuse, meets the following criteria:
7 (1) The substance is substantially similar to a controlled substance
8 classified under IC 35-48-2.
9 (2) The substance has a narcotic, stimulant, depressant, or
10 hallucinogenic effect on the central nervous system or is
11 represented or intended to have a narcotic, stimulant, depressant,
12 or hallucinogenic effect on the central nervous system
13 substantially similar to or greater than that of a controlled
14 substance classified under IC 35-48-2.
15 (b) The definition set forth in subsection (a) does not include:
16 (1) a controlled substance;
17 (2) a legend drug;
18 (3) a substance for which there is an approved new drug
19 application;
20 (4) any compound, mixture, or preparation that contains any
21 controlled substance, that is not for administration to a human
22 being or an animal, and that is packaged in a form or
23 concentration, or with adulterants or denaturants, such that as
24 packaged it does not present any significant potential for abuse;
25 or
26 (5) a substance to which an investigational exemption applies
27 under Section 505 of the federal Food, Drug and Cosmetic Act
28 (chapter 675, 52 Stat. 1052 (21 U.S.C. 355)), but only to the
29 extent that conduct with respect to the substance is pursuant to the
30 exemption; or
31 (6) low THC hemp extract; or
32 (7) a craft hemp flower product.
33 (c) For purposes of subsection (a), "substantially similar", as it
34 applies to the chemical structure of a substance, means that the
35 chemical structure of the substance, when compared to the structure of
36 a controlled substance, has a single difference in the structural formula
37 that substitutes one (1) atom or functional group for another, including:
38 (1) one (1) halogen for another halogen;
39 (2) one (1) hydrogen for a halogen;
40 (3) one (1) halogen for a hydrogen; or
41 (4) an alkyl group added or deleted:
42 (A) as a side chain to or from a molecule; or
SB 478—LS 6068/DI 120 40
1 (B) from a side chain of a molecule.
2 SECTION 27. IC 35-48-1-10 IS AMENDED TO READ AS
3 FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 10. (a) "Counterfeit
4 substance", for purposes of IC 35-48-4-5, means a controlled
5 substance which, or the container or labeling of which, without
6 authorization, bears the trademark, trade name, or other identifying
7 mark, imprint, number, or device, or any likeness thereof, of a
8 manufacturer, distributor, or dispenser other than the person who in
9 fact manufactured, distributed, or dispensed the substance.
10 (b) "Counterfeit substance", for purposes of IC 35-48-4-5.5,
11 means hemp flower or a hemp flower product which, or the
12 container or labeling of which, without authorization, bears the
13 trademark, trade name, or other identifying mark, imprint,
14 number, or device, or any likeness thereof, of a manufacturer,
15 distributor, or dispenser other than the person who in fact
16 manufactured, distributed, or dispensed the substance.
17 SECTION 28. IC 35-48-1-10.5 IS ADDED TO THE INDIANA
18 CODE AS A NEW SECTION TO READ AS FOLLOWS
19 [EFFECTIVE JULY 1, 2025]: Sec. 10.5. "Craft hemp flower
20 product" has the meaning set forth in IC 35-31.5-2-68.9.
21 SECTION 29. IC 35-48-1-16.8, AS ADDED BY P.L.153-2018,
22 SECTION 19, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
23 JULY 1, 2025]: Sec. 16.8. "Hashish" does not include:
24 (1) low THC hemp extract; or
25 (2) a craft hemp flower product.
26 SECTION 30. IC 35-48-1-17.2 IS REPEALED [EFFECTIVE JULY
27 1, 2025]. Sec. 17.2. (a) "Hemp bud" means the harvested immature
28 reproductive organ of the female hemp plant.
29 (b) The term does not include agricultural hemp seed.
30 SECTION 31. IC 35-48-1-17.3 IS REPEALED [EFFECTIVE JULY
31 1, 2025]. Sec. 17.3. (a) "Hemp flower" means the harvested
32 reproductive organ, whether immature or mature, of the female hemp
33 plant.
34 (b) The term does not include agricultural hemp seed.
35 SECTION 32. IC 35-48-1-17.5, AS AMENDED BY P.L.190-2019,
36 SECTION 28, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
37 JULY 1, 2025]: Sec. 17.5. (a) "Low THC hemp extract" means a
38 substance or compound that:
39 (1) is derived from or contains any part of the plant Cannabis
40 sativa L. that meets the definition of hemp under IC 15-15-13-6;
41 (2) contains not more than three-tenths of one percent (0.3%)
42 total delta-9-tetrahydrocannabinol (THC), tetrahydrocannabinol
SB 478—LS 6068/DI 120 41
1 (THC), including precursors, by weight or volume; and
2 (3) contains no other controlled substances.
3 (b) The term does not include:
4 (1) the harvested reproductive organ, whether immature or
5 mature, of the female hemp plant; or
6 (2) smokable hemp. a craft hemp flower product; or
7 (3) smokable hemp.
8 SECTION 33. IC 35-48-1-19, AS AMENDED BY P.L.190-2019,
9 SECTION 29, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
10 JULY 1, 2025]: Sec. 19. (a) "Marijuana" means any part of the plant
11 genus Cannabis whether growing or not; the seeds thereof; the resin
12 extracted from any part of the plant, including hashish and hash oil; any
13 compound, manufacture, salt, derivative, mixture, or preparation of the
14 plant, its seeds or resin.
15 (b) The term does not include:
16 (1) the mature stalks of the plant;
17 (2) fiber produced from the stalks;
18 (3) oil or cake made from the seeds of the plant;
19 (4) any other compound, manufacture, salt, derivative, mixture,
20 or preparation of the mature stalks (except the resin extracted
21 therefrom);
22 (5) the sterilized seed of the plant which is incapable of
23 germination;
24 (6) hemp (as defined by IC 15-15-13-6);
25 (7) low THC hemp extract; or
26 (8) smokable hemp. a craft hemp flower product; or
27 (9) smokable hemp.
28 SECTION 34. IC 35-48-1-26.6, AS ADDED BY P.L.190-2019,
29 SECTION 30, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
30 JULY 1, 2025]: Sec. 26.6. (a) Except as provided in subsection (b),
31 "smokable hemp" means a product, plant, or a part of a plant
32 containing not more than three-tenths of one percent (0.3%)
33 delta-9-tetrahydrocannabinol (THC), tetrahydrocannabinol (THC),
34 including precursors and derivatives of THC, in a form that allows
35 THC to be introduced into the human body by inhalation of smoke.
36 Except as provided in subsection (b), the term includes craft hemp
37 flower.
38 (1) hemp bud; and
39 (2) hemp flower.
40 (b) The term does not include a craft hemp flower product (as
41 defined by IC 35-31.5-2-68.9), or:
42 (1) a hemp plant that is; or
SB 478—LS 6068/DI 120 42
1 (2) parts of a hemp plant that are; or
2 (3) craft hemp flower that is;
3 grown or handled by a licensee for processing or manufacturing into a
4 legal hemp product, including a craft hemp flower product.
5 SECTION 35. IC 35-48-4-5.5 IS ADDED TO THE INDIANA
6 CODE AS A NEW SECTION TO READ AS FOLLOWS
7 [EFFECTIVE JULY 1, 2025]: Sec. 5.5. A person who:
8 (1) knowingly or intentionally:
9 (A) creates;
10 (B) delivers; or
11 (C) finances the delivery of;
12 a counterfeit substance; or
13 (2) possesses, with intent to:
14 (A) deliver; or
15 (B) finance the delivery of;
16 a counterfeit substance;
17 commits dealing in a counterfeit hemp substance, a Class A
18 misdemeanor. However, a person may be convicted of an offense
19 under subdivision (2) only if there is evidence in addition to the
20 weight of the counterfeit substance that the person intended to
21 deliver or finance the delivery of the counterfeit substance.
22 SECTION 36. IC 35-52-24-20.3 IS ADDED TO THE INDIANA
23 CODE AS A NEW SECTION TO READ AS FOLLOWS
24 [EFFECTIVE JULY 1, 2025]: Sec. 20.3. IC 24-4-24-8 defines a crime
25 concerning possession of craft hemp flower products.
26 SECTION 37. IC 35-52-24-20.4 IS ADDED TO THE INDIANA
27 CODE AS A NEW SECTION TO READ AS FOLLOWS
28 [EFFECTIVE JULY 1, 2025]: Sec. 20.4. IC 24-4-24-9 defines a crime
29 concerning distribution or sale of craft hemp flower products.
SB 478—LS 6068/DI 120 43
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 44
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 45
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 46
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 47
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 48
(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 49
(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 50
(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 51
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 52
(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 53
(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 54
(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 55
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 56
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 57
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 58
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 59
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 60
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 61
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 62
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 63
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.
_____
COMMITTEE REPORT
Mr. President: The Senate Committee on Tax and Fiscal Policy, 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 3, between lines 37 and 38, begin a new paragraph and insert:
"SECTION 3. IC 7.1-7-2-10, AS AMENDED BY P.L.206-2017,
SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 10. (a) Except as provided in subsection (b),
SB 478—LS 6068/DI 120 64
"E-liquid" means a substance that:
(1) may or may not contain nicotine; and
(2) is intended to be vaporized and inhaled using a vapor product.
(b) The term does not include a low THC hemp extract as
defined in IC 35-48-1-17.5.".
Page 4, line 4, after "manufacturer" insert "applies for a permit to
sell, distribute, or manufacture craft hemp by December 31, 2025.".
Page 4, delete line 5.
Page 4, line 8, delete "or craft hemp flower." and insert ", craft
hemp flower, or low THC hemp extract.".
Page 4, between lines 12 and 13, begin a new paragraph and insert:
"Sec. 4. As used in this article, "low THC hemp extract" has the
meaning set forth in IC 35-48-1-17.5.".
Page 10, between lines 19 and 20, begin a new paragraph and insert:
"Sec. 17. (a) A retail location may not sell craft hemp flower
products if the retail location is within one thousand (1,000) feet of
a private school, public school, or charter school that includes any
grade from kindergarten through grade 12.
(b) If a retailer provides the commission with documentation
that establishes that craft hemp flower products were offered for
sale at a retail location before January 1, 2025, the retail location
may sell craft hemp flower products even if it is within one
thousand (1,000) feet of a school.".
Page 21, between lines 36 and 37, begin a new paragraph and insert:
"Chapter 7. Advertising
Sec. 1. As used in this chapter, "advertise" or "advertising"
means the publication, dissemination, solicitation, or circulation of
visual, oral, or written communication to directly induce any
person to purchase or consume craft hemp. The term includes the
promotion of special pricing, sales, or discounts on craft hemp. The
term does not include branding, marketing, or packaging and
labeling of craft hemp or information regarding special pricing,
sales, or discounts on display inside a retail establishment.
Sec. 2. As used in this chapter, "billboard" means a sign that
directs attention to a business, commodity, service, entertainment,
or attraction that is sold, is offered, or that exists in a place other
than the same premises where the sign is displayed.
Sec. 3. As used in this chapter, "brand" or "branding" means
creating a unique identity for a business to target an audience or
a consumer. Branding does not include references to specific
products.
Sec. 4. As used in this chapter, "commercial mascot" means a
SB 478—LS 6068/DI 120 65
live human being, animal, or mechanical device used for attracting
the attention of motorists and passersby so as to make them aware
of craft hemp or the presence of a permittee. Commercial mascots
include inflatable tube displays, persons in costume, or persons
wearing, holding, or spinning a sign with a commercial message or
image related to craft hemp, where the intent is to draw attention
to a permittee or its products.
Sec. 5. As used in this chapter, "electronic advertising" means
advertising that takes place on the Internet, including on the
website of a permittee, on a web application, and on a social media
platform.
Sec. 6. As used in this chapter, "market" or "marketing" means
an action a business uses to promote its brand, location, or services.
The term does not include references to specific products.
Sec. 7. As used in this chapter, "permittee" means a person who
holds a permit issued under this article.
Sec. 8. (a) A permittee may use advertising to promote its
business and market its brand.
(b) Except as provided in subsection (c), a permittee may not
advertise craft hemp.
(c) A permittee may use electronic advertising to promote craft
hemp.
Sec. 9. The following apply to an outdoor sign on the premises
of a permittee:
(1) A permittee may use the term "craft hemp", "craft hemp
flower", or "craft hemp flower product" in its outdoor
signage.
(2) A permittee's outdoor signage may not do any of the
following:
(A) Use the terms "marijuana" or "cannabis".
(B) Use a colloquial terms for marijuana or marijuana
products, such as pot, reefer, or weed.
(C) Display an image or visual representation of craft
hemp, marijuana, or paraphernalia, or an image that
indicates the presence of a product such as smoke, edibles,
or gummies.
(D) Indicate the presence of a particular compound of craft
hemp, such as THC, delta-8, delta-10, or THCA.
(3) A permittee's outdoor signage must comply with any
applicable local ordinances or regulations relating to signs.
Sec. 10. (a) A permittee that maintains a web page must require
an individual to affirmatively indicate that the individual is at least
SB 478—LS 6068/DI 120 66
twenty-one (21) years of age before accessing the content of the
web page.
(b) The social media account of a permittee that advertises craft
hemp must be private and must contain a clearly visible notice on
the main page stating that only individuals at least twenty-one (21)
years of age may follow the account.
(c) A permittee that uses a QR code in an electronic
advertisement must require an individual to affirmatively indicate
that the individual is at least twenty-one (21) years of age before
accessing the content of the site accessed by the QR code.
Sec. 11. A permittee may not do any of the following:
(1) Engage in advertising via marketing directed towards
location based devices, including cellular telephones, unless a
user affirmatively opts in to receiving push notifications
related to craft hemp.
(2) Use unsolicited pop up or push to advertising on the
Internet.
(3) Advertise on television, on radio, or in print, including
newspapers, magazines, flyers, and mailers. However, a
permittee may make use of informational pamphlets or
business cards for dissemination at a craft hemp trade
conference.
(4) Engage in advertising or use signage that asserts that its
products are safe. However, a permittee may state that its
products have been tested by an independent laboratory as
required by law.
(5) Use a billboard.
(6) Use items such as toys or inflatables, movie or cartoon
characters, or any other depiction or image likely to be
appealing to children, if the item, image, or depiction suggest
an intent to cause children to become interested in the
purchase or consumption of craft hemp.
(7) Use or employ a commercial mascot outside of, and in
proximity to, a permitted business.".
Page 25, line 27, delete "and".
Page 25, reset in roman lines 28 through 33.
Page 25, line 34, reset in roman "(H)".
Page 25, line 34, delete "(G)".
Page 26, line 10, after "extract;" insert "or".
Page 26, delete lines 11 through 13.
Page 26, line 14, delete "(3)" and insert "(2)".
Page 26, delete lines 26 through 32.
SB 478—LS 6068/DI 120 67
Page 26, line 36, delete "a product containing:" and insert "a low
THC hemp extract".
Page 26, delete lines 37 through 42.
Page 26, run in line 36 through page 27, line 1.
Page 31, between lines 14 and 15, begin a new line double block
indented and insert:
"(C) a drink;".
Page 31, line 15, delete "(C)" and insert "(D)".
Page 31, line 16, delete "(D)" and insert "(E)".
Page 31, between lines 31 and 32, begin a new paragraph and insert:
"SECTION 19. IC 35-31.5-2-189.9, AS ADDED BY P.L.153-2018,
SECTION 14, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 189.9. "Low THC hemp extract", for purposes of
IC 35-46 and IC 35-48, has the meaning set forth in IC 35-48-1-17.5.".
Page 38, line 27, delete "product plant" and insert "product, plant,".
Renumber all SECTIONS consecutively.
and when so amended that said bill do pass.
(Reference is to SB 478 as printed February 7, 2025.)
HOLDMAN, Chairperson
Committee Vote: Yeas 12, Nays 0.
_____
SENATE MOTION
Mr. President: I move that Senate Bill 478 be amended to read as
follows:
Page 21, line 41, delete "A" and insert "(a) Except as provided in
subsection (b), a".
Page 22, between lines 4 and 5, begin a new paragraph and insert: 
"(b) This subsection does not apply to the holder of a liquor
dealer's permit issued under IC 7.1-3-10-4 that is also a craft retail
hemp establishment.".
Page 27, after line 42, begin a new paragraph and insert:
"SECTION 14. IC 24-4-21-3, AS AMENDED BY P.L.190-2019,
SECTION 24, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 3. A person may distribute low THC hemp extract
in Indiana only if the distributor has a certificate of analysis prepared
by an independent testing laboratory showing:
SB 478—LS 6068/DI 120 68
(1) that the low THC hemp extract is the product of a batch tested
by the independent testing laboratory;
(2) that the independent testing laboratory determined that the
batch contained not more than three-tenths percent (0.3%) total
delta-9-tetrahydrocannabinol (THC), tetrahydrocannabinol
(THC), including precursors of THC, by weight or volume,
based on the testing of a random sample of the batch; and
(3) the cannabidiol percent present of the low THC hemp
extract.".
Page 28, line 31, strike "delta-9-tetrahydrocannabinol (THC)," and
insert "tetrahydrocannabinol (THC),".
Page 28, line 32, delete "weight." and insert "weight or volume.".
Page 30, line 32, delete "delta-9-tetrahydrocannabinol (THC)," and
insert "tetrahydrocannabinol (THC),".
Page 30, line 33, delete "weight," and insert "weight or volume,".
Page 32, line 1, delete "delta-9-tetrahydrocannabinol (THC)," and
insert "tetrahydrocannabinol (THC),".
Page 32, line 2, delete "weight." and insert "weight or volume.".
Page 33, delete line 11 and insert "means the harvested
reproductive organ, whether immature or mature, of the female
Cannabis sativa L. plant containing not more than three-tenths of
one percent (0.3%) of tetrahydrocannabinol (THC), including
precursors of THC, by weight or volume, in a form that is intended
to allow THC to be introduced into the human body by inhalation
of smoke.".
Page 33, delete lines 12 through 16.
Page 33, delete line 24.
Page 33, line 25, after "(2)" insert "contains not more than
three-tenths of one percent (0.3%) of tetrahydrocannabinol (THC),
including precursors of THC, by weight or volume;
(3) contains no other controlled substances; and
(4)".
Page 37, delete lines 33 through 42, begin a new line block indented
and insert:
"(1) purchases tobacco, an e-liquid, or an electronic cigarette;
(2) accepts tobacco, an e-liquid, or an electronic cigarette for
personal use; or
(3) possesses tobacco, an e-liquid, or an electronic cigarette on
the person's person;
commits a Class C infraction.
(b) It is a defense under subsection (a) that the accused person acted
in the ordinary course of employment in a business concerning tobacco,
SB 478—LS 6068/DI 120 69
an e-liquid, or an electronic cigarette for the following activities:
(1) Agriculture.
(2) Processing.
(3) Transporting.
(4) Wholesaling.
(5) Retailing.
(c) A person less than twenty-one (21) years of age who:
(1) purchases a product that contains THC, including low
THC hemp extract, craft hemp flower, or a craft hemp flower
product;
(2) accepts a product that contains THC, including low THC
hemp extract, craft hemp flower, or a craft hemp flower
product, for personal use; or
(3) possesses a product that contains THC, including low THC
hemp extract, craft hemp flower, or a craft hemp flower
product, on the person's person;
commits a Class C infraction.".
Page 38, delete lines 1 through 6.
Page 40, line 14, strike "delta-9-tetrahydrocannabinol (THC)," and
insert "tetrahydrocannabinol (THC),".
Page 40, line 15, delete "weight;" and insert "weight or volume;".
Page 41, line 5, strike "delta-9-tetrahydrocannabinol (THC)," and
insert "tetrahydrocannabinol (THC),".
(Reference is to SB 478 as printed February 12, 2025.)
JOHNSON T
SB 478—LS 6068/DI 120