*ES0478.1*
March 20, 2025
ENGROSSED
SENATE BILL No. 478
_____
DIGEST OF SB 478 (Updated March 19, 2025 6:20 pm - DI 107)
Citations Affected: IC 6-7; IC 7.1-2; IC 7.1-3; IC 7.1-5; IC 7.1-7;
IC 7.1-8; IC 15-15; IC 16-42; IC 24-4; IC 34-30; 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. Specifies penalties applicable to the
unlawful possession or distribution of craft hemp flower products.
Create new craft hemp crimes. Provides that a food is not considered
adulterated for containing low THC hemp extract or craft hemp flower.
(Continued next page)
Effective: July 1, 2020 (retroactive); July 1, 2025.
Holdman, Garten, Baldwin, Bassler,
Walker K, Pol Jr., Clark, Donato,
Hunley, Ford J.D., Doriot, Alting,
Randolph Lonnie M, Busch, Yoder
(HOUSE SPONSORS — TESHKA, CASH, BARTELS, GORE)
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.
February 14, 2025, engrossed.
February 20, 2025, read third time, passed. Yeas 40, nays 9.
HOUSE ACTION
March 3, 2025, read first time and referred to Committee on Commerce, Small Business
and Economic Development.
March 20, 2025, amended, reported — Do Pass. Referred to Committee on Ways and
Means pursuant to Rule 126.3.
ES 478—LS 6068/DI 120 Digest Continued
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. Expands certain alcoholic beverage
laws to include craft hemp products. Provides that a person who is a
retail craft hemp permit holder and a retail alcoholic beverage permit
holder may serve craft hemp beverages in the original container for
consumption on the permitted premises. Adds certain retail
establishments that sell craft hemp products to the list of retail
establishments that must prohibit minors from entering. Provides that
"consumable material", for purposes of tobacco taxes, does not include
craft hemp. Provides that the tax on the distribution of closed system
cartridges does not apply to a closed system that contains craft hemp.
Provides that the tax on taxable products does not apply to a taxable
product that contains craft hemp. Provides that "e-liquid" does not
include a craft hemp flower product. Provides that onsite consumption
restrictions do not apply to holders of certain alcoholic beverage
retailer permits. Provides that if the alcohol and tobacco commission
does not approve craft hemp packaging within 30 days, the packaging
is deemed approved and eligible for sale. Defines terms. Makes
conforming changes. Makes technical corrections.
ES 478—LS 6068/DI 120ES 478—LS 6068/DI 120 March 20, 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.
ENGROSSED
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 6-7-4-2, AS ADDED BY P.L.165-2021, SECTION
2 119, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY
3 1, 2025]: Sec. 2. As used in this chapter, "consumable material" means
4 any liquid solution or other material used in an open system container
5 that is depleted as the vapor product is used. The term does not include:
6 (1) closed system cartridges (as defined in IC 6-7-2-0.5); and
7 (2) craft hemp (as defined in IC 7.1-8-1-1).
8 SECTION 2. IC 6-7-2-7.5, AS AMENDED BY THE TECHNICAL
9 CORRECTIONS BILL OF THE 2025 GENERAL ASSEMBLY, IS
10 AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2025]:
11 Sec. 7.5. (a) This section does not apply to a closed system cartridge
12 that contains craft hemp (as defined in IC 7.1-8-1-1).
13 (a) (b) A tax is imposed on the distribution of closed system
14 cartridges in Indiana at the rate of fifteen percent (15%) of the
15 wholesale price of the closed system cartridge. If a closed system
16 cartridge is sold in the same package as a vapor product device, the tax
17 imposed under this subsection shall only apply to the wholesale price
ES 478—LS 6068/DI 120 2
1 of the closed system cartridge if the wholesale cost of the closed system
2 cartridge can be isolated from the vapor product device on the invoice.
3 (b) (c) The distributor of closed system cartridges, including a
4 person that sells closed system cartridges through an Internet web site,
5 a website, is liable for the tax imposed under subsection (a). (b). The
6 tax is imposed at the time the distributor:
7 (1) brings or causes closed system cartridges to be brought into
8 Indiana for distribution;
9 (2) manufactures closed system cartridges in Indiana for
10 distribution; or
11 (3) transports closed system cartridges to retail dealers in Indiana
12 for resale by those retail dealers.
13 (c) (d) A consumer who purchases untaxed closed system cartridges
14 from a distributor or retailer is liable for the tax imposed under
15 subsection (a). (b).
16 SECTION 3. IC 6-7-2-7.7, AS ADDED BY P.L.137-2022,
17 SECTION 70, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
18 JULY 1, 2025]: Sec. 7.7. (a) This section does not apply to a taxable
19 product that contains craft hemp (as defined in IC 7.1-8-1-1).
20 (a) (b) The tax imposed under sections 7(a)(1), 7(b), and 7.5(a)
21 7.5(b) of this chapter shall also be imposed on the sale of taxable
22 products in Indiana by remote sellers, and shall be calculated based on
23 one (1) of the following methods:
24 (1) For remote sellers using an actual cost method, the tax shall
25 be calculated by applying the rate to the actual cost of each
26 individual product.
27 (2) For remote sellers using an actual cost list method, the tax
28 shall be calculated by applying the rate to the cost established for
29 each individual product in the remote seller's actual cost list.
30 (b) (c) The remote seller of taxable products is liable for the tax
31 imposed under section 7(a)(1), 7(b), or 7.5(a) 7.5(b) of this chapter.
32 (c) (d) The tax under this section shall be imposed at the time of
33 purchase by an ultimate consumer.
34 SECTION 4. IC 7.1-2-3-33, AS AMENDED BY P.L.49-2020,
35 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
36 JULY 1, 2025]: Sec. 33. The commission is authorized to:
37 (1) investigate a violation of; and
38 (2) enforce a penalty for a violation of;
39 IC 35-46-1-10, IC 35-46-1-10.2, IC 35-46-1-11, IC 35-46-1-11.2,
40 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,
41 or IC 7.1-8.
42 SECTION 5. IC 7.1-3-18.5-5, AS AMENDED BY P.L.49-2020,
ES 478—LS 6068/DI 120 3
1 SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
2 JULY 1, 2025]: Sec. 5. (a) Subject to subsection (b), the commission
3 may suspend the certificate of a person who fails to pay a civil penalty
4 imposed for violating IC 35-46-1-10, IC 35-46-1-10.2, IC 35-46-1-11,
5 IC 35-46-1-11.2, IC 35-46-1-11.4, IC 35-46-1-11.5, IC 35-46-1-11.7,
6 or IC 35-46-1-11.8.
7 (b) Before enforcing the imposition of a civil penalty or suspending
8 or revoking a certificate under this chapter, the commission shall
9 provide written notice of the alleged violation to the certificate holder
10 and conduct a hearing. The commission shall provide written notice of
11 the civil penalty or suspension or revocation of a certificate to the
12 certificate holder.
13 (c) Subject to subsection (b), the commission shall revoke the
14 certificate of a person upon a finding by a preponderance of the
15 evidence that the person:
16 (1) has violated IC 35-45-5-3, IC 35-45-5-3.5, IC 35-45-5-4,
17 IC 35-46-1-11, IC 35-46-1-11.2, IC 35-46-1-11.4, or
18 IC 35-46-1-11.8;
19 (2) has committed habitual illegal sale of tobacco sales as
20 established under IC 35-46-1-10.2(j); or
21 (3) has committed habitual illegal entrance by a minor as
22 established under IC 35-46-1-11.7(f).
23 SECTION 6. IC 7.1-3-18.5-9, AS AMENDED BY P.L.49-2020,
24 SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
25 JULY 1, 2025]: Sec. 9. A certificate holder shall exercise due diligence
26 in the supervision and training of the certificate holder's employees or
27 agents in the handling and sale of tobacco products and electronic
28 cigarettes on the holder's retail premises. Proof that employees or
29 agents of the certificate holder, while in the scope of their employment,
30 committed at least six (6) violations relating to IC 35-46-1-10.2(b)
31 IC 35-46-1-10.2(c) in any one (1) year period shall be prima facie
32 evidence of a lack of due diligence by the certificate holder in the
33 supervision and training of the certificate holder's employees or agents.
34 SECTION 7. IC 7.1-5-7-18 IS ADDED TO THE INDIANA CODE
35 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
36 1, 2025]: Sec. 18. (a) A law enforcement officer vested with full
37 police powers and duties may engage an individual who is:
38 (1) at least sixteen (16) years of age; and
39 (2) less than twenty-one (21) years of age;
40 to receive or purchase craft hemp, a product that contains low
41 THC hemp extract, or a product that contains craft hemp, as part
42 of an enforcement under this article.
ES 478—LS 6068/DI 120 4
1 (b) The initial or contemporaneous receipt or purchase of a
2 craft hemp product, a product that contains low THC hemp
3 extract, or a product that contains craft hemp may only:
4 (1) occur under the direction of a law enforcement officer
5 vested with full police powers and duties; and
6 (2) be part of an enforcement action.
7 SECTION 8. IC 7.1-5-10-15, AS AMENDED BY P.L.159-2014,
8 SECTION 80, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
9 JULY 1, 2025]: Sec. 15. (a) A person who, knowing that another
10 person is intoxicated, sells, barters, delivers, or gives away an alcoholic
11 beverage or a craft hemp product to the intoxicated person commits
12 a Class B misdemeanor.
13 (b) In any civil proceeding in which damages are sought from a
14 permittee or a permittee's agent for the refusal to serve a person an
15 alcoholic beverage or craft hemp product, it is a complete defense if
16 the permittee or agent reasonably believed that the person was
17 intoxicated or was otherwise not entitled to be served an alcoholic
18 beverage or craft hemp product.
19 (c) After charges have been filed against a person for a violation of
20 subsection (a), the prosecuting attorney shall notify the commission of
21 the charges filed.
22 SECTION 9. IC 7.1-5-10-15.5 IS AMENDED TO READ AS
23 FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 15.5. (a) As used in this
24 section, "furnish" includes barter, deliver, sell, exchange, provide, or
25 give away.
26 (b) A person who furnishes an alcoholic beverage or craft hemp
27 product to a person is not liable in a civil action for damages caused
28 by the impairment or intoxication of the person who was furnished the
29 alcoholic beverage unless:
30 (1) the person furnishing the alcoholic beverage or craft hemp
31 product had actual knowledge that the person to whom the
32 alcoholic beverage or craft hemp product was furnished was
33 visibly intoxicated at the time the alcoholic beverage or craft
34 hemp product was furnished; and
35 (2) the intoxication of the person to whom the alcoholic beverage
36 or craft hemp product was furnished was a proximate cause of
37 the death, injury, or damage alleged in the complaint.
38 (c) If a person who is at least twenty-one (21) years of age suffers
39 injury or death proximately caused by the person's voluntary
40 intoxication, the:
41 (1) person;
42 (2) person's dependents;
ES 478—LS 6068/DI 120 5
1 (3) person's personal representative; or
2 (4) person's heirs;
3 may not assert a claim for damages for personal injury or death against
4 a person who furnished an alcoholic beverage or craft hemp product
5 that contributed to the person's intoxication, unless subsections (b)(1)
6 and (b)(2) apply.
7 SECTION 10. IC 7.1-7-2-10, AS AMENDED BY P.L.206-2017,
8 SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
9 JULY 1, 2020 (RETROACTIVE)]: Sec. 10. (a) "E-liquid" means a
10 substance that:
11 (1) may or may not contain nicotine; and
12 (2) is intended to be vaporized and inhaled using a vapor product.
13 (b) This subsection applies before July 1, 2025. The term does
14 not include a craft hemp flower product as defined in
15 IC 35-31.5-2-68.9.
16 (c) This subsection applies after June 30, 2025. The term does
17 not include:
18 (1) a craft hemp flower product as defined in
19 IC 35-31.5-2-68.9; and
20 (2) low THC hemp extract as defined in IC 35-48-1-17.5.
21 SECTION 11. IC 7.1-8 IS ADDED TO THE INDIANA CODE AS
22 A NEW ARTICLE TO READ AS FOLLOWS [EFFECTIVE JULY 1,
23 2025]:
24 ARTICLE 8. CRAFT HEMP
25 Chapter 0.5. Application
26 Sec. 1. Notwithstanding any other law, a retailer, distributor,
27 manufacturer, or out-of-state supplier, who was in operation
28 before July 1, 2025, may continue to operate without a permit
29 issued under this article until December 31, 2025, if the retailer,
30 distributor, or manufacturer applies for a permit to sell, distribute,
31 or manufacture craft hemp by December 31, 2025.
32 Chapter 1. Definitions
33 Sec. 1. As used in this article, "craft hemp" means craft hemp
34 flower product, craft hemp flower, or low THC hemp extract.
35 Sec. 2. As used in this article, "craft hemp flower" has the
36 meaning set forth in IC 35-31.5-2-68.8.
37 Sec. 3. As used in this article, "craft hemp flower product" has
38 the meaning set forth in IC 35-31.5-2-68.9.
39 Sec. 4. As used in this article, "low THC hemp extract" has the
40 meaning set forth in IC 35-48-1-17.5.
41 Chapter 2. Craft Hemp Retail Permits
42 Sec. 1. (a) A person may not sell or otherwise distribute in
ES 478—LS 6068/DI 120 6
1 exchange for consideration craft hemp directly to a consumer for
2 consumption off the permitted premises without a valid retail craft
3 hemp permit issued by the commission.
4 (b) A permit may be issued only to a person who owns or
5 operates premises consisting of a permanent building or structure
6 where the craft hemp is sold or distributed.
7 (c) A retail permit holder may only purchase craft hemp from
8 a manufacturer or distributor that holds the appropriate permits.
9 (d) A person who is a retail craft hemp permit holder and a
10 retail alcoholic beverage permit holder may serve craft hemp
11 beverages in the original container for consumption on the
12 permitted premises.
13 Sec. 2. (a) A person who desires a permit must provide the
14 following to the commission:
15 (1) The applicant's name and mailing address and the address
16 of the premises for which the permit is being issued.
17 (2) A fee of one thousand dollars ($1,000) for each retail
18 location.
19 (3) The name under which the applicant transacts or intends
20 to transact business.
21 (4) The address of the applicant's principal place of business
22 or headquarters, if any.
23 (5) The statement required under section 4 of this chapter.
24 (6) If the applicant is applying for a new permit under section
25 6 of this chapter, a copy of each of the following:
26 (A) If the new ownership of the business is a business
27 entity, the articles of incorporation, articles of
28 organization, or any other formation documents of the
29 business entity.
30 (B) If the new ownership of the business is an individual,
31 either:
32 (i) the sales or purchase agreement; or
33 (ii) an affidavit signed by the applicant concerning the
34 sale or purchase, on a form prescribed by the
35 commission, that includes the name and address of the
36 seller and purchaser.
37 (C) The permit held by the previous ownership of the
38 business.
39 (b) A separate permit is required for each location where the
40 craft hemp products or craft hemp flower are sold or distributed.
41 A retail establishment may not hold more than one (1) active craft
42 hemp retail permit for a retail location at any time.
ES 478—LS 6068/DI 120 7
1 (c) A permit holder shall conspicuously display the holder's
2 permit on the holder's premises where the craft hemp is sold or
3 distributed.
4 (d) Any intentional misstatement or suppression of a material
5 fact in an application filed under this section constitutes grounds
6 for denial of the permit.
7 (e) A permit may be issued only to a person who meets the
8 following requirements:
9 (1) If the person is an individual, the person must be at least
10 twenty-one (21) years of age.
11 (2) The person must be authorized to do business in Indiana.
12 (3) The person has not had an interest in a permit revoked by
13 the commission for that business location within the preceding
14 one (1) year.
15 (f) The fees collected under this section shall be deposited in the
16 enforcement and administration fund under IC 7.1-4-10.
17 Sec. 3. (a) Subject to available resources, the commission shall
18 not issue a craft hemp retail permit, except as otherwise authorized
19 in this title and subject to the other restrictions contained in this
20 title, to the following persons:
21 (1) A person who does not have lawful status (as defined in
22 IC 9-13-2-92.3).
23 (2) A person who has been convicted within five (5) years
24 before the date of application of:
25 (A) a federal crime having a sentence of at least one (1)
26 year;
27 (B) a Level 1, Level 2, Level 3, Level 4, or Level 5 felony;
28 or
29 (C) a crime in a state other than Indiana having a penalty
30 equal to the penalty for an Indiana Level 1, Level 2, Level
31 3, Level 4, or Level 5 felony.
32 However, this subdivision does not apply to a conviction that
33 has been expunged under IC 35-38-9.
34 (3) A person who does not meet at least one (1) of the
35 following descriptions:
36 (A) The person owns the premises to which the permit will
37 be applicable.
38 (B) The person has a valid lease on the premises:
39 (i) at the time of the application for a permit; and
40 (ii) for the duration of the period in which the person
41 sells or distributes in the manner described in section 1
42 of this chapter.
ES 478—LS 6068/DI 120 8
1 (C) The person has a franchise agreement with a
2 franchisor:
3 (i) that owns the premises to which the permit will be
4 applicable; or
5 (ii) that has a bona fide lease on the premises for the full
6 period for which the permit is to be issued.
7 (4) A person whose place of business is conducted by a
8 manager or agent, unless the manager or agent possesses the
9 same qualifications required for the issuance of a craft hemp
10 retail permit to the person.
11 (5) A minor.
12 (6) A person non compos mentis.
13 (7) A person who has held a permit under this article or
14 permit under this title and who has had that permit under this
15 article or this title, as applicable, revoked within one (1) year
16 prior to the date of application for a craft hemp retail permit.
17 (8) A person who has made an application for a permit or
18 permit of any type under this title which has been denied less
19 than one (1) year prior to the person's application for a craft
20 hemp retail permit unless the first application was denied by
21 reason of a procedural or technical defect.
22 (b) Subsection (a)(5) does not prevent a minor from being a
23 stockholder in a corporation.
24 Sec. 4. An application for a craft hemp permit must contain the
25 express statement of the applicant that the applicant consents for
26 the duration of the permit term (if the commission issues the
27 permit to the applicant) to the entrance, inspection, and search by
28 an enforcement officer, without a warrant or other process, of the
29 applicant's retail premises to determine whether the applicant is
30 complying with the provisions of this title. The consent required by
31 this section is renewed and continued by the retention of a permit
32 or the permit's use by the applicant or the applicant's agents.
33 Sec. 5. (a) A permit issued by the commission under this chapter
34 must contain the following information:
35 (1) The permit number.
36 (2) The permit holder's name.
37 (3) The permanent location of the business for which the
38 permit is issued.
39 (4) The expiration date of the permit.
40 (b) A permit is:
41 (1) valid for two (2) years after the date of issuance, unless the
42 commission suspends the permit; and
ES 478—LS 6068/DI 120 9
1 (2) nontransferable.
2 (c) A permit may be renewed. The fee for renewing a permit is
3 one thousand dollars ($1,000) for each retail location.
4 Sec. 6. If the majority of the ownership of a business that is a
5 permit holder is sold or transferred:
6 (1) the new ownership of the business must apply for a new
7 permit under section 2 of this chapter; and
8 (2) the permit and the permit number held by the previous
9 ownership of the business are void ninety (90) days after the
10 date of the sale or transfer of the ownership of the business.
11 Sec. 7. The commission may adopt rules under IC 4-22-2 to
12 establish procedures for the issuance, renewal, and reinstatement
13 of a permit.
14 Sec. 8. (a) Subject to subsection (b), the commission may
15 suspend the permit of a person who fails to pay a civil penalty
16 imposed by the commission.
17 (b) Before enforcing the imposition of a civil penalty or
18 suspending or revoking a permit under this chapter, the
19 commission shall provide written notice of the alleged violation to
20 the permit holder and conduct a hearing. The commission shall
21 provide written notice of the civil penalty or suspension or
22 revocation of a permit to the permit holder.
23 (c) Subject to subsection (b), the commission shall revoke the
24 permit of a person upon a finding by a preponderance of the
25 evidence that the person:
26 (1) has violated IC 35-45-5-3, IC 35-45-5-3.5, IC 35-45-5-4,
27 IC 35-46-1-11, IC 35-46-1-11.2, IC 35-46-1-11.4, or
28 IC 35-46-1-11.8;
29 (2) has committed habitual illegal sale of craft hemp as
30 established under IC 35-46-1-10.2(j); or
31 (3) has committed habitual illegal entrance by a minor as
32 established under IC 35-46-1-11.7(f).
33 Sec. 9. (a) If a permit has:
34 (1) expired; or
35 (2) been suspended;
36 the commission may not reinstate or renew the permit until all civil
37 penalties imposed against the permit holder for violating
38 IC 35-46-1-10, IC 35-46-1-10.2, IC 35-46-1-11, IC 35-46-1-11.2,
39 IC 35-46-1-11.4, IC 35-46-1-11.5, IC 35-46-1-11.7, or
40 IC 35-46-1-11.8 have been paid.
41 (b) The failure to pay a civil penalty described in subsection (a)
42 is a Class B infraction.
ES 478—LS 6068/DI 120 10
1 (c) If a permit has been revoked, the commission may not
2 reinstate or renew the permit for at least one hundred eighty (180)
3 days after the date of revocation. The commission may reinstate or
4 renew the permit only upon a reasonable showing by the applicant
5 that the applicant shall:
6 (1) exercise due diligence in the sale of craft hemp on the
7 applicant's premises where the craft hemp is sold or
8 distributed; and
9 (2) properly supervise and train the applicant's employees or
10 agents in the handling and sale of craft hemp.
11 If a permit is reinstated or renewed, the applicant of the permit
12 shall pay an application fee of one thousand dollars ($1,000).
13 Sec. 10. A person who is required to have a permit under this
14 chapter and who sells or distributes craft hemp without a valid
15 permit commits a Class A infraction. Each violation of this section
16 constitutes a separate offense.
17 Sec. 11. The commission may mitigate civil penalties imposed
18 against a permit holder for violating IC 35-46-1-10,
19 IC 35-46-1-10.2, IC 35-46-1-11, IC 35-46-1-11.2, IC 35-46-1-11.4,
20 IC 35-46-1-11.5, IC 35-46-1-11.7, IC 35-46-1-11.8, or any of the
21 provisions of this chapter if a permit holder provides a training
22 program for the permit holder's employees that includes at least
23 the following topics:
24 (1) Laws governing the sale of craft hemp flower products and
25 craft hemp flower.
26 (2) Methods of recognizing and handling customers who are
27 less than twenty-one (21) years of age.
28 (3) Procedures for proper examination of identification cards
29 to verify that customers are less than twenty-one (21) years of
30 age.
31 Sec. 12. A permit holder shall exercise due diligence in the
32 supervision and training of the permit holder's employees or agents
33 in the handling and sale of craft hemp products and craft hemp
34 flower on the holder's retail premises.
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 flower products.
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
ES 478—LS 6068/DI 120 11
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 officer;
7 when selling craft hemp flower products.
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 administrative law judge may
29 recommend to the commission that the commission suspend or
30 revoke the permit holder's permit or impose a fine on the permit
31 holder of up to one thousand dollars ($1,000).
32 (b) An administrative law judge may grant a continuance of a
33 hearing upon written motion showing good cause for the
34 continuance.
35 Sec. 15. If a permit holder sells or distributes craft hemp at a
36 location:
37 (1) determined to be a public nuisance; or
38 (2) at which conduct or acts that are crimes or infractions
39 under IC 35 occur;
40 the commission may impose sanctions against the permit holder.
41 Sec. 16. This section applies to a person holding a tobacco sales
42 certificate. A person holding a tobacco sales certificate may not be
ES 478—LS 6068/DI 120 12
1 issued a craft hemp retail permit if the person has received a
2 violation within the previous three (3) years for any of the
3 following:
4 (1) Violating IC 7.1-3-18.5-11 (public nuisance).
5 (2) Selling tobacco to a person less than twenty-one (21) years
6 of age (IC 35-46-1-10.2).
7 (3) Allowing a minor to enter a licensed premise
8 (IC 35-46-1-11.7).
9 (4) Selling e-liquid containing vitamin E acetate
10 (IC 35-46-1-11.9).
11 (5) Dealing in paraphernalia (IC 35-48-4-8.5).
12 Sec. 17. (a) A retail location may not sell craft hemp flower
13 products if the retail location is within one thousand (1,000) feet of
14 a private school, public school, or charter school that includes any
15 grade from kindergarten through grade 12.
16 (b) If a retailer provides the commission with documentation
17 that establishes that craft hemp flower products were offered for
18 sale at a retail location before January 1, 2025, the retail location
19 may sell craft hemp flower products even if it is within one
20 thousand (1,000) feet of a school.
21 Chapter 3. Craft Hemp Distributor Permits
22 Sec. 1. (a) A person may not distribute craft hemp to a retailer
23 without a valid craft hemp distributor permit issued by the
24 commission. A craft hemp distributor permit holder may sell craft
25 hemp to a retail craft hemp permit holder.
26 (b) A craft hemp distributor permit does not authorize a person
27 to sell craft hemp products directly to a consumer.
28 (c) A craft hemp distributor permit holder must purchase craft
29 hemp from a craft hemp manufacturing permit holder or from an
30 out-of-state craft hemp supplier permit holder.
31 (d) A permit may be issued only to a person who owns or
32 operates premises consisting of a permanent building or structure
33 from which the craft hemp is distributed.
34 Sec. 1.5. (a) A person located outside of Indiana may not
35 distribute craft hemp to a person located within Indiana without
36 a valid out-of-state craft hemp supplier permit issued by the
37 commission under subsection (b).
38 (b) The commission may issue an out-of-state craft hemp
39 supplier permit based on the factors set forth in section 2 of this
40 chapter.
41 (c) An out-of-state craft hemp supplier permit holder may sell
42 craft hemp directly to a consumer if the consumer is at least
ES 478—LS 6068/DI 120 13
1 twenty-one (21) years of age and located within Indiana at the time
2 of the sale and delivery.
3 (d) A parcel in which craft hemp is mailed to an Indiana
4 purchaser must be marked as follows: "CONTAINS CRAFT
5 HEMP. NOT FOR DELIVERY TO A PERSON UNDER THE
6 AGE OF 21"
7 Sec. 2. (a) A person who desires a permit under this chapter
8 must provide the following to the commission:
9 (1) The applicant's name and mailing address and the address
10 of the premises for which the permit is being issued.
11 (2) A fee of five thousand dollars ($5,000).
12 (3) The name under which the applicant transacts or intends
13 to transact business.
14 (4) The address of the applicant's principal place of business
15 or headquarters, if any.
16 (5) The statement required under section 4 of this chapter.
17 (6) If the applicant is applying for a new permit under section
18 6 of this chapter, a copy of each of the following:
19 (A) If the new ownership of the business is a business
20 entity, the articles of incorporation, articles of
21 organization, or any other formation documents of the
22 business entity.
23 (B) If the new ownership of the business is an individual,
24 either:
25 (i) the sales or purchase agreement; or
26 (ii) an affidavit signed by the applicant concerning the
27 sale or purchase, on a form prescribed by the
28 commission, that includes the name and address of the
29 seller and purchaser.
30 (C) The permit held by the previous ownership of the
31 business.
32 (b) A separate permit is required for each location from which
33 the craft hemp is distributed.
34 (c) A permit holder shall conspicuously display the holder's
35 permit on the holder's premises where the craft hemp is
36 distributed, and in any vehicle used for the transportation of craft
37 hemp.
38 (d) Any intentional misstatement or suppression of a material
39 fact in an application filed under this section constitutes grounds
40 for denial of the permit.
41 (e) A permit may be issued only to a person who meets the
42 following requirements:
ES 478—LS 6068/DI 120 14
1 (1) If the person is an individual, the person must be at least
2 twenty-one (21) years of age.
3 (2) The person must be authorized to do business in Indiana.
4 (3) The person has not had an interest in a permit revoked by
5 the commission for that business location within the preceding
6 one (1) year.
7 (f) The fees collected under this section shall be deposited in the
8 enforcement and administration fund under IC 7.1-4-10.
9 Sec. 3. (a) Subject to available resources, the commission shall
10 not issue a craft hemp distributor permit, except as otherwise
11 authorized in this title and subject to the other restrictions
12 contained in this title, to the following persons:
13 (1) A person who does not have lawful status (as defined in
14 IC 9-13-2-92.3).
15 (2) A person who has been convicted within five (5) years
16 before the date of application of:
17 (A) a federal crime having a sentence of at least one (1)
18 year;
19 (B) a Level 1, Level 2, Level 3, Level 4, or Level 5 felony;
20 or
21 (C) a crime in a state other than Indiana having a penalty
22 equal to the penalty for an Indiana Level 1, Level 2, Level
23 3, Level 4, or Level 5 felony.
24 However, this subdivision does not apply to a conviction that
25 has been expunged under IC 35-38-9.
26 (3) A person who does not meet at least one (1) of the
27 following descriptions:
28 (A) The person owns the premises to which the permit will
29 be applicable.
30 (B) The person has a valid lease on the premises:
31 (i) at the time of the application for a permit; and
32 (ii) for the duration of the period in which the person
33 sells or distributes in the manner described in section 1
34 of this chapter.
35 (C) The person has a franchise agreement with a
36 franchisor:
37 (i) that owns the premises to which the permit will be
38 applicable; or
39 (ii) that has a bona fide lease on the premises for the full
40 period for which the permit is to be issued.
41 (4) A person whose place of business is conducted by a
42 manager or agent, unless the manager or agent possesses the
ES 478—LS 6068/DI 120 15
1 same qualifications required for the issuance of a craft hemp
2 distributor permit to the person.
3 (5) A minor.
4 (6) A person non compos mentis.
5 (7) A person who has held a permit under this article or
6 permit under this title and who has had that permit under this
7 article or this title, as applicable, revoked within one (1) year
8 prior to the date of application for a craft hemp permit.
9 (8) A person who has made an application for a permit or
10 permit of any type under this title that has been denied less
11 than one (1) year prior to the person's application for a craft
12 hemp distributor permit unless the first application was
13 denied by reason of a procedural or technical defect.
14 (b) Subsection (a)(5) does not prevent a minor from being a
15 stockholder in a corporation.
16 Sec. 4. An application for a craft hemp permit must contain the
17 express statement of the applicant that the applicant consents for
18 the duration of the permit term (if the commission issues the
19 permit to the applicant) to the entrance, inspection, and search by
20 an enforcement officer, without a warrant or other process, of the
21 applicant's premises to determine whether the applicant is
22 complying with the provisions of this title. The consent required by
23 this section is renewed and continued by the retention of a permit
24 or the permit's use by the applicant or the applicant's agents.
25 Sec. 5. (a) A permit issued by the commission under this chapter
26 must contain the following information:
27 (1) The permit number.
28 (2) The permit holder's name.
29 (3) The permanent location of the business for which the
30 permit is issued.
31 (4) The expiration date of the permit.
32 (b) A permit is:
33 (1) valid for two (2) years after the date of issuance, unless the
34 commission suspends the permit; and
35 (2) nontransferable.
36 (c) A permit may be renewed. The fee for renewing a permit is
37 five thousand dollars ($5,000).
38 Sec. 6. If the majority of the ownership of a business that is a
39 permit holder is sold or transferred:
40 (1) the new ownership of the business must apply for a new
41 permit under section 2 of this chapter; and
42 (2) the permit and the permit number held by the previous
ES 478—LS 6068/DI 120 16
1 ownership of the business are void ninety (90) days after the
2 date of the sale or transfer of the ownership of the business.
3 Sec. 7. The commission may adopt rules under IC 4-22-2 to
4 establish procedures for the issuance, renewal, and reinstatement
5 of a permit.
6 Sec. 8. (a) Subject to subsection (b), the commission may
7 suspend the permit of a person who fails to pay a civil penalty
8 imposed by the commission.
9 (b) Before enforcing the imposition of a civil penalty or
10 suspending or revoking a permit under this chapter, the
11 commission shall provide written notice of the alleged violation to
12 the permit holder and conduct a hearing. The commission shall
13 provide written notice of the civil penalty or suspension or
14 revocation of a permit to the permit holder.
15 (c) Subject to subsection (b), the commission shall revoke the
16 permit of a person upon a finding by a preponderance of the
17 evidence that the person:
18 (1) has violated IC 35-45-5-3, IC 35-45-5-3.5, IC 35-45-5-4,
19 IC 35-46-1-11, IC 35-46-1-11.2, IC 35-46-1-11.4, or
20 IC 35-46-1-11.8;
21 (2) has committed habitual illegal sale of craft hemp as
22 established under IC 35-46-1-10.2(j); or
23 (3) has committed habitual illegal entrance by a minor as
24 established under IC 35-46-1-11.7(f).
25 Sec. 9. (a) If a permit has:
26 (1) expired; or
27 (2) been suspended;
28 the commission may not reinstate or renew the permit until all civil
29 penalties imposed against the permit holder for violating
30 IC 35-46-1-10, IC 35-46-1-10.2, IC 35-46-1-11, IC 35-46-1-11.2,
31 IC 35-46-1-11.4, IC 35-46-1-11.5, IC 35-46-1-11.7, or
32 IC 35-46-1-11.8 have been paid.
33 (b) The failure to pay a civil penalty described in subsection (a)
34 is a Class B infraction.
35 (c) If a permit has been revoked, the commission may not
36 reinstate or renew the permit for at least one hundred eighty (180)
37 days after the date of revocation. The commission may reinstate or
38 renew the permit only upon a reasonable showing by the applicant
39 that the applicant shall:
40 (1) exercise due diligence in the distribution of craft hemp;
41 and
42 (2) properly supervise and train the applicant's employees or
ES 478—LS 6068/DI 120 17
1 agents in the handling and distribution of craft hemp.
2 If a permit is reinstated or renewed, the applicant of the permit
3 shall pay an application fee of one thousand dollars ($1,000).
4 Sec. 10. A person who is required to have a permit under this
5 chapter and distributes craft hemp without a valid permit commits
6 a Class A infraction. Each violation of this section constitutes a
7 separate offense.
8 Sec. 11. The commission may mitigate civil penalties imposed
9 against a permit holder for violating IC 35-46-1-10,
10 IC 35-46-1-10.2, IC 35-46-1-11, IC 35-46-1-11.2, IC 35-46-1-11.4,
11 IC 35-46-1-11.5, IC 35-46-1-11.7, IC 35-46-1-11.8, or any of the
12 provisions of this chapter if a permit holder provides a training
13 program for the permit holder's employees that includes training
14 in laws governing the distribution of craft hemp.
15 Sec. 12. A permit holder shall exercise due diligence in the
16 supervision and training of the permit holder's employees or agents
17 in the handling and distribution of craft hemp.
18 Sec. 13. (a) An employee of a permit holder must hold a valid:
19 (1) driver's license issued by the state of Indiana or another
20 state; or
21 (2) identification card issued by the state of Indiana, another
22 state, or the United States;
23 to distribute craft hemp.
24 (b) An employee must have the employee's driver's license or
25 identification card or a copy of the employee's driver's license or
26 identification card:
27 (1) either:
28 (A) in the employee's possession; or
29 (B) on file with the employee's employer; and
30 (2) upon request, readily available to show to an excise officer
31 or law enforcement officer;
32 when distributing craft hemp.
33 (c) If an employee holds a valid license or identification card as
34 described in subsection (a) but is unable to show the license,
35 identification card, or a copy to an excise officer under subsection
36 (b) because:
37 (1) the employee has left the license, identification card, or
38 copy in another location; or
39 (2) the license, identification card, or copy has otherwise been
40 lost or mislaid;
41 the employee may, within five (5) days of the employee's inability
42 to show the license, identification card, or copy to the excise officer,
ES 478—LS 6068/DI 120 18
1 produce to the excise officer or to the office of the commission
2 satisfactory evidence of a license or identification card issued to the
3 individual that was valid at the time the individual was unable to
4 show the license, identification card, or copy.
5 (d) If an employee who is unable to show a license, identification
6 card, or copy to an excise officer fails to produce satisfactory
7 evidence within five (5) days in the manner described in subsection
8 (c), the commission may impose a civil penalty on the permit
9 holder.
10 Sec. 14. (a) If a permit holder fails to attend or participate in a
11 hearing without good cause, the administrative law judge may
12 recommend to the commission that the commission suspend or
13 revoke the permit holder's permit or impose a fine on the permit
14 holder of up to one thousand dollars ($1,000).
15 (b) An administrative law judge may grant a continuance of a
16 hearing upon written motion showing good cause for the
17 continuance.
18 Sec. 15. If a permit holder distributes craft hemp at a location:
19 (1) determined to be a public nuisance; or
20 (2) at which conduct or acts that are crimes or infractions
21 under IC 35 occur;
22 the commission may impose sanctions against the permit holder.
23 Chapter 4. Craft Hemp Manufacturer Permits
24 Sec. 1. (a) A person may not manufacture craft hemp without a
25 valid craft hemp manufacturer permit issued by the commission.
26 (b) A permit may be issued only to a person who owns or
27 operates premises consisting of a permanent building or structure
28 where the craft hemp is manufactured.
29 (c) A craft hemp manufacturer permit holder may only sell craft
30 hemp to a craft hemp distributor permit holder or a craft hemp
31 retail permit holder issued by the commission. A craft hemp
32 manufacturer permit holder may not sell a craft hemp product
33 directly to a consumer without first obtaining a craft hemp retail
34 permit issued by the commission.
35 Sec. 2. (a) A person who desires a permit must provide the
36 following to the commission:
37 (1) The applicant's name and mailing address and the address
38 of the premises for which the permit is being issued.
39 (2) A fee of five thousand dollars ($5,000).
40 (3) The name under which the applicant transacts or intends
41 to transact business.
42 (4) The address of the applicant's principal place of business
ES 478—LS 6068/DI 120 19
1 or headquarters, if any.
2 (5) The statement required under section 4 of this chapter.
3 (6) If the applicant is applying for a new permit under section
4 6 of this chapter, a copy of each of the following:
5 (A) If the new ownership of the business is a business
6 entity, the articles of incorporation, articles of
7 organization, or any other formation documents of the
8 business entity.
9 (B) If the new ownership of the business is an individual,
10 either:
11 (i) the sales or purchase agreement; or
12 (ii) an affidavit signed by the applicant concerning the
13 sale or purchase, on a form prescribed by the
14 commission, that includes the name and address of the
15 seller and purchaser.
16 (C) The permit held by the previous ownership of the
17 business.
18 (b) A separate permit is required for each location where the
19 craft hemp is manufactured.
20 (c) A permit holder shall conspicuously display the holder's
21 permit on the holder's premises where the craft hemp is
22 manufactured.
23 (d) Any intentional misstatement or suppression of a material
24 fact in an application filed under this section constitutes grounds
25 for denial of the permit.
26 (e) A permit may be issued only to a person who meets the
27 following requirements:
28 (1) If the person is an individual, the person must be at least
29 twenty-one (21) years of age.
30 (2) The person must be authorized to do business in Indiana.
31 (3) The person has not had an interest in a permit revoked by
32 the commission for that business location within the preceding
33 one (1) year.
34 (f) The fees collected under this section shall be deposited in the
35 enforcement and administration fund under IC 7.1-4-10.
36 Sec. 3. (a) Subject to available resources, the commission shall
37 not issue a craft hemp manufacturer permit, except as otherwise
38 authorized in this title and subject to the other restrictions
39 contained in this title, to the following persons:
40 (1) A person who does not have lawful status (as defined in
41 IC 9-13-2-92.3).
42 (2) A person who has been convicted within five (5) years
ES 478—LS 6068/DI 120 20
1 before the date of application of:
2 (A) a federal crime having a sentence of at least one (1)
3 year;
4 (B) a Level 1, Level 2, Level 3, Level 4, or Level 5 felony;
5 or
6 (C) a crime in a state other than Indiana having a penalty
7 equal to the penalty for an Indiana Level 1, Level 2, Level
8 3, Level 4, or Level 5 felony.
9 However, this subdivision does not apply to a conviction that
10 has been expunged under IC 35-38-9.
11 (3) A person who does not meet at least one (1) of the
12 following descriptions:
13 (A) The person owns the premises to which the permit will
14 be applicable.
15 (B) The person has a valid lease on the premises:
16 (i) at the time of the application for a permit; and
17 (ii) for the duration of the period in which the person
18 manufactures in the manner described in section 1 of this
19 chapter.
20 (C) The person has a franchise agreement with a
21 franchisor:
22 (i) that owns the premises to which the permit will be
23 applicable; or
24 (ii) that has a bona fide lease on the premises for the full
25 period for which the permit is to be issued.
26 (4) A person whose place of business is conducted by a
27 manager or agent, unless the manager or agent possesses the
28 same qualifications required for the issuance of a craft hemp
29 manufacturer permit to the person.
30 (5) A minor.
31 (6) A person non compos mentis.
32 (7) A person who has held a permit under this article or under
33 this title and who has had that permit under this article or this
34 title, as applicable, revoked within one (1) year prior to the
35 date of application for a craft hemp manufacturer permit.
36 (8) A person who has made an application for a permit under
37 this article or permit of any type under this title that has been
38 denied less than one (1) year prior to the person's application
39 for a craft hemp manufacturer permit unless the first
40 application was denied by reason of a procedural or technical
41 defect.
42 (b) Subsection (a)(5) does not prevent a minor from being a
ES 478—LS 6068/DI 120 21
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 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 two (2) years 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 five thousand dollars ($5,000).
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.
ES 478—LS 6068/DI 120 22
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 manufacturing of craft hemp;
27 and
28 (2) properly supervise and train the applicant's employees or
29 agents in the handling and manufacturing of craft hemp.
30 If a permit is reinstated or renewed, the applicant of the permit
31 shall pay an application fee of one thousand dollars ($1,000).
32 Sec. 10. A person who is required to have a permit under this
33 chapter and manufactures craft hemp without a valid permit
34 commits a Class A infraction. Each violation of this section
35 constitutes a separate offense.
36 Sec. 11. The commission may mitigate civil penalties imposed
37 against a permit holder for violating IC 35-46-1-10,
38 IC 35-46-1-10.2, IC 35-46-1-11, IC 35-46-1-11.2, IC 35-46-1-11.4,
39 IC 35-46-1-11.5, IC 35-46-1-11.7, IC 35-46-1-11.8, or any of the
40 provisions of this chapter if a permit holder provides a training
41 program for the permit holder's employees that includes training
42 in laws governing the manufacturing of craft hemp.
ES 478—LS 6068/DI 120 23
1 Sec. 12. A permit holder shall exercise due diligence in the
2 supervision and training of the permit holder's employees or agents
3 in the handling and manufacturing of craft hemp.
4 Sec. 13. (a) An employee of a permit holder must hold a valid:
5 (1) driver's license issued by the state of Indiana or another
6 state; or
7 (2) identification card issued by the state of Indiana, another
8 state, or the United States;
9 to manufacture craft hemp.
10 (b) An employee must have the employee's driver's license or
11 identification card or a copy of the employee's driver's license or
12 identification card:
13 (1) either:
14 (A) in the employee's possession; or
15 (B) on file with the employee's employer; and
16 (2) upon request, readily available to show to an excise officer
17 or law enforcement officer;
18 when manufacturing craft hemp.
19 (c) If an employee holds a valid license or identification card as
20 described in subsection (a) but is unable to show the license,
21 identification card, or a copy to an excise officer under subsection
22 (b) because:
23 (1) the employee has left the license, identification card, or
24 copy in another location; or
25 (2) the license, identification card, or copy has otherwise been
26 lost or mislaid;
27 the employee may, within five (5) days of the employee's inability
28 to show the license, identification card, or copy to the excise officer,
29 produce to the excise officer or to the office of the commission
30 satisfactory evidence of a license or identification card issued to the
31 individual that was valid at the time the individual was unable to
32 show the license, identification card, or copy.
33 (d) If an employee who is unable to show a license, identification
34 card, or copy to an excise officer fails to produce satisfactory
35 evidence within five (5) days in the manner described in subsection
36 (c), the commission may impose a civil penalty on the permit
37 holder.
38 Sec. 14. (a) If a permit holder fails to attend or participate in a
39 hearing without good cause, the administrative law judge may
40 recommend to the commission that the commission suspend or
41 revoke the permit holder's permit or impose a fine on the permit
42 holder of up to one thousand dollars ($1,000).
ES 478—LS 6068/DI 120 24
1 (b) An administrative law judge may grant a continuance of a
2 hearing upon written motion showing good cause for the
3 continuance.
4 Sec. 15. If a permit holder manufactures craft hemp at a
5 location:
6 (1) determined to be a public nuisance; or
7 (2) at which conduct or acts that are crimes or infractions
8 under IC 35 occur;
9 the commission may impose sanctions against the permit holder.
10 Chapter 5. Retail Establishments
11 Sec. 1. (a) Except as provided in subsection (b), a craft hemp
12 retail establishment must keep the craft hemp behind a bar or in
13 a location to which a purchaser does not have access. If a person
14 purchases craft hemp, an employee of the retail establishment shall
15 remove the craft hemp from behind the bar or from the
16 inaccessible location and deliver it to the purchaser.
17 (b) This subsection does not apply to the holder of a liquor
18 dealer's permit issued under IC 7.1-3-10-4 that is also a craft retail
19 hemp establishment.
20 Sec. 2. (a) A retail establishment may not permit consumption
21 of craft hemp on the premises of the retail establishment.
22 (b) This subsection does not apply to the following holders of
23 any beer, liquor, or wine retailer's permits issued under IC 7.1:
24 (1) A racetrack.
25 (2) A restaurant.
26 (3) A social club.
27 (4) A fraternal club.
28 (5) A resort hotel.
29 (6) An economic redevelopment site.
30 (7) A gaming center.
31 (8) An airport.
32 (9) A horse track.
33 (10) The state fairgrounds.
34 (11) A catering hall.
35 (12) A historic district.
36 (13) A professional sports stadium.
37 (14) A concert venue.
38 Chapter 6. Manufacturing Facilities
39 Sec. 1. (a) A craft hemp manufacturer must submit any
40 proposed craft hemp packaging to the commission for preapproval
41 before delivering or causing delivery of craft hemp to a retail
42 establishment.
ES 478—LS 6068/DI 120 25
1 (b) If the commission does not issue a denial under subsection
2 (a) within thirty (30) days, the packaging is deemed approved and
3 eligible for sale.
4 Chapter 7. Advertising
5 Sec. 1. As used in this chapter, "advertise" or "advertising"
6 means the publication, dissemination, solicitation, or circulation of
7 visual, oral, or written communication to directly induce any
8 person to purchase or consume craft hemp. The term includes the
9 promotion of special pricing, sales, or discounts on craft hemp. The
10 term does not include branding, marketing, or packaging and
11 labeling of craft hemp or information regarding special pricing,
12 sales, or discounts on display inside a retail establishment.
13 Sec. 2. As used in this chapter, "billboard" means a sign that
14 directs attention to a business, commodity, service, entertainment,
15 or attraction that is sold, is offered, or that exists in a place other
16 than the same premises where the sign is displayed.
17 Sec. 3. As used in this chapter, "brand" or "branding" means
18 creating a unique identity for a business to target an audience or
19 a consumer. Branding does not include references to specific
20 products.
21 Sec. 4. As used in this chapter, "commercial mascot" means a
22 live human being, animal, or mechanical device used for attracting
23 the attention of motorists and passersby so as to make them aware
24 of craft hemp or the presence of a permittee. Commercial mascots
25 include inflatable tube displays, persons in costume, or persons
26 wearing, holding, or spinning a sign with a commercial message or
27 image related to craft hemp, where the intent is to draw attention
28 to a permittee or its products.
29 Sec. 5. As used in this chapter, "electronic advertising" means
30 advertising that takes place on the Internet, including on the
31 website of a permittee, on a web application, and on a social media
32 platform.
33 Sec. 6. As used in this chapter, "market" or "marketing" means
34 an action a business uses to promote its brand, location, or services.
35 The term does not include references to specific products.
36 Sec. 7. As used in this chapter, "permittee" means a person who
37 holds a permit issued under this article.
38 Sec. 8. (a) A permittee may use advertising to promote its
39 business and market its brand.
40 (b) Except as provided in subsection (c), a permittee may not
41 advertise craft hemp.
42 (c) A permittee may use electronic advertising to promote craft
ES 478—LS 6068/DI 120 26
1 hemp.
2 Sec. 9. The following apply to an outdoor sign on the premises
3 of a permittee:
4 (1) A permittee may use the term "craft hemp", "craft hemp
5 flower", or "craft hemp flower product" on its outdoor
6 signage.
7 (2) A permittee's outdoor signage may not do any of the
8 following:
9 (A) Use the terms "marijuana" or "cannabis".
10 (B) Use a colloquial term for marijuana or marijuana
11 products, such as pot, reefer, or weed.
12 (C) Display an image or visual representation of craft
13 hemp, marijuana, or paraphernalia, or an image that
14 indicates the presence of a product such as smoke, edibles,
15 or gummies.
16 (D) Indicate the presence of a particular compound of craft
17 hemp, such as THC, delta-8, delta-10, or THCA.
18 (3) A permittee's outdoor signage must comply with any
19 applicable local ordinances or regulations relating to signs.
20 Sec. 10. (a) A permittee that maintains a web page must require
21 an individual to affirmatively indicate that the individual is at least
22 twenty-one (21) years of age before accessing the content of the
23 web page.
24 (b) The social media account of a permittee that advertises craft
25 hemp must contain a clearly visible notice on the main page stating
26 that only individuals at least twenty-one (21) years of age may
27 follow the account.
28 (c) A permittee that uses a QR code in an electronic
29 advertisement must require an individual to affirmatively indicate
30 that the individual is at least twenty-one (21) years of age before
31 accessing the content of the site accessed by the QR code.
32 Sec. 11. A permittee may not do any of the following:
33 (1) Use a billboard.
34 (2) Use items such as toys or inflatables, movie or cartoon
35 characters, or any other depiction or image likely to be
36 appealing to children, if the item, image, or depiction suggests
37 an intent to cause children to become interested in the
38 purchase or consumption of craft hemp.
39 (3) Use or employ a commercial mascot outside of, and in
40 proximity to, a permitted business.
41 Chapter 8. Criminal Acts
42 Sec. 1. (a) This section does not apply to a person who holds a
ES 478—LS 6068/DI 120 27
1 permit to sell, distribute, or manufacture craft hemp product.
2 (b) A person who knowingly or intentionally:
3 (1) purchases;
4 (2) receives;
5 (3) manufactures;
6 (4) imports;
7 (5) transports;
8 (6) causes to be imported or transports from another state,
9 territory, or country, into Indiana;
10 (7) transports;
11 (8) ships;
12 (9) barters;
13 (10) gives away;
14 (11) exchanges;
15 (12) furnishes;
16 (13) handles; or
17 (14) possesses;
18 craft hemp for purposes of sale, commits a Class B misdemeanor.
19 (c) An individual who knowingly or intentionally acquires craft
20 hemp product from a person that the individual knows does not
21 hold an appropriate permit under this article to sell, deliver,
22 furnish, or give craft hemp product commits a Class B
23 misdemeanor.
24 Sec. 2. (a) A person who recklessly, knowingly, or intentionally
25 sells, barters, exchanges, provides, or furnishes:
26 (1) craft hemp product; or
27 (2) a product containing THC (tetrahydrocannabinol);
28 to a minor commits dealing craft hemp to a minor, a Class A
29 misdemeanor.
30 (b) An offense described in subsection (a) is a:
31 (1) Level 6 felony if the person has a prior unrelated
32 conviction under this section; or
33 (2) Level 5 felony if the consumption, ingestion, or use of the
34 craft hemp product or THC is the proximate cause of serious
35 bodily injury or the death of an individual.
36 (c) The following defenses are available to a person or permittee
37 accused of dealing craft hemp to a minor:
38 (1) The buyer or recipient produced a driver's license that
39 included the purchaser's or recipient's photograph and
40 indicated the purchaser or recipient is at least twenty-one (21)
41 years of age to make the purchase.
42 (2) The buyer or recipient produced a photographic
ES 478—LS 6068/DI 120 28
1 identification card issued under IC 9-24-16-1 or a similar card
2 issued under the laws of another state or the federal
3 government that indicated the purchaser or recipient was at
4 least twenty-one (21) years of age to make the purchase.
5 (3) An ordinary, prudent individual would believe the
6 purchaser or recipient was not less than forty (40) years of
7 age based on the purchaser's or recipient's appearance.
8 (d) It is a defense to a prosecution under this section that a
9 permittee sold or provided craft hemp product to a minor who
10 acted in the ordinary course of employment or a business
11 concerning craft hemp products for the following activities:
12 (1) Agriculture.
13 (2) Processing.
14 (3) Transporting.
15 (4) Wholesaling.
16 (5) Retailing.
17 (e) A person who distributes or sells craft hemp directly to
18 purchasers through a website must use a reliable online age
19 verification system or obtain and examine a copy of the
20 purchaser's government issued identification.
21 (f) A permittee who violates subsection (a) or (e) is subject to the
22 following civil penalties:
23 (1) One thousand dollars ($1,000) for the first violation.
24 (2) Five thousand dollars ($5,000) for a second violation that
25 occurs within two (2) years of a first violation and the
26 suspension of the retailer's permit for up to six (6) months.
27 (3) Ten thousand dollars ($10,000) for each subsequent
28 violation that occurs within two (2) years of the preceding
29 violation, and revocation of the retailer's permit.
30 (g) A permittee who violates subsection (a) at least three (3)
31 times in a one (1) year period commits habitual furnishing of craft
32 hemp to a minor.
33 (h) A retailer whose permit is suspended under subsection (f)(2)
34 may reapply for a permit after one (1) year of the suspension.
35 Sec. 3. (a) A minor who knowingly or intentionally possesses:
36 (1) craft hemp; or
37 (2) a product containing THC (tetrahydrocannabinol);
38 commits possession of craft hemp by a minor, a Class B
39 misdemeanor.
40 (b) It is a defense to a prosecution under this section that the
41 accused minor acted in the ordinary course of employment or a
42 business concerning craft hemp products for the following
ES 478—LS 6068/DI 120 29
1 activities:
2 (1) Agriculture.
3 (2) Processing.
4 (3) Transporting.
5 (4) Wholesaling.
6 (5) Retailing.
7 SECTION 12. IC 15-15-13-6.7 IS ADDED TO THE INDIANA
8 CODE AS A NEW SECTION TO READ AS FOLLOWS
9 [EFFECTIVE JULY 1, 2025]: Sec. 6.7. As used in this chapter,
10 "work in progress hemp extract" means a compound:
11 (1) derived from hemp;
12 (2) intended to be processed into a hemp product;
13 (3) in a partially processed state;
14 (4) having a concentration of delta-9 THC that exceeds
15 three-tenths of one percent (0.3%) by dry weight; and
16 (5) not marketed for consumer use or consumption.
17 SECTION 13. IC 15-15-13-11, AS AMENDED BY P.L.190-2019,
18 SECTION 12, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
19 JULY 1, 2025]: Sec. 11. Only a hemp licensee, the licensee's designee,
20 or the licensee's agents may be permitted to transport hemp or work in
21 progress hemp extract off a production site. When transporting hemp
22 or work in progress hemp extract off the production site, the hemp
23 licensee, designee, or agent shall have in the licensee's, designee's, or
24 agent's possession the licensing documents from the state seed
25 commissioner evidencing that the hemp or work in progress hemp
26 extract is from certified seed produced by a licensed grower.
27 SECTION 14. IC 15-15-13-11.5 IS ADDED TO THE INDIANA
28 CODE AS A NEW SECTION TO READ AS FOLLOWS
29 [EFFECTIVE JULY 1, 2025]: Sec. 11.5. (a) Subject to subsection (b),
30 a handler holding a valid license under this chapter may possess,
31 manufacture, store, transport, or sell work in progress hemp
32 extract.
33 (b) Work in progress hemp extract may be sold only to a:
34 (1) handler holding a valid license under this chapter; or
35 (2) person holding a valid hemp or cannabis license in another
36 jurisdiction.
37 SECTION 15. IC 15-15-13-19, AS ADDED BY P.L.190-2019,
38 SECTION 20, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
39 JULY 1, 2025]: Sec. 19. (a) Hemp bud (as defined in IC 35-48-1-17.2)
40 and hemp flower (as defined in IC 35-48-1-17.3) Craft hemp flower
41 (as defined by IC 35-31.5-2-68.8) may be transported or sold
42 intrastate only to a processor licensed under this chapter for
ES 478—LS 6068/DI 120 30
1 processing or manufacturing into a legal hemp product, including
2 a craft hemp flower product (as defined by IC 35-31.5-2-68.9).
3 (b) Craft hemp flower may be sold and transported interstate in
4 accordance with section 11 of this chapter.
5 (b) (c) The state seed commissioner may impose a civil penalty
6 under section 13 of this chapter for a violation of subsection (a).
7 SECTION 16. IC 16-42-2-2 IS AMENDED TO READ AS
8 FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 2. (a) A food is
9 considered adulterated under any of the following conditions:
10 (1) If the food bears or contains any poisonous or deleterious
11 substance that may make the food injurious to health. However,
12 if the substance is not an added substance, the food is not to be
13 considered adulterated under this subdivision if the quantity of the
14 substance in the food does not ordinarily make the food injurious
15 to health.
16 (2) If:
17 (A) the food bears or contains any added poison or added
18 deleterious substance (other than a poison or a deleterious
19 substance that is a pesticide chemical in or on a raw
20 agricultural commodity, a food additive, or a color additive)
21 that is unsafe within the meaning of section 5 of this chapter;
22 (B) the food is a raw agricultural commodity and the food
23 bears or contains a pesticide chemical that is unsafe under
24 section 5 of this chapter; or
25 (C) the food is or contains a food additive that is unsafe under
26 section 5 of this chapter.
27 However, when a pesticide chemical is used in or on a raw
28 agricultural commodity in conformity with an exemption granted
29 or tolerance prescribed under section 5 of this chapter and the raw
30 agricultural commodity has been subjected to processing such as
31 canning, cooking, freezing, dehydrating, or milling, the residue of
32 the pesticide chemical remaining in or on the processed food,
33 notwithstanding section 5 of this chapter and clause (C) is not
34 considered unsafe if the residue in or on the raw agricultural
35 commodity has been removed to the extent possible in good
36 manufacturing practice, and the concentration of the residues in
37 the processed food, when ready to eat, is not greater than the
38 tolerance prescribed for the raw agricultural commodity.
39 (3) If the food consists in whole or in part of a diseased,
40 contaminated, filthy, putrid, or decomposed substance or if the
41 food is otherwise unfit for food.
42 (4) If the food has been produced, transported, handled, prepared,
ES 478—LS 6068/DI 120 31
1 packed, or held under unsanitary conditions or in unsanitary
2 containers as the result of which the food may have become
3 contaminated with filth or made diseased, unwholesome, or
4 injurious to health.
5 (5) If the food is, in whole or in part, the product of:
6 (A) a diseased animal;
7 (B) an animal that has died otherwise than by slaughter; or
8 (C) an animal that has been fed upon the uncooked offal from
9 a slaughterhouse.
10 (6) If the food's container is composed in whole or in part of any
11 poisonous or deleterious substance that may make the contents
12 injurious to health.
13 (7) If the food has been intentionally subjected to radiation, unless
14 the use of the radiation was in conformity with a rule or an
15 exemption in effect under section 5 of this chapter.
16 (8) If any valuable constituent has been in whole or in part
17 omitted or abstracted from the food.
18 (9) If any substance has been substituted wholly or in part.
19 (10) If damage or inferiority has been concealed in any manner.
20 (11) If any substance has been added to the food or mixed or
21 packed with the food to:
22 (A) increase the food's bulk or weight;
23 (B) reduce the food's quality or strength;
24 (C) make the food appear better or of greater value than the
25 food is; or
26 (D) create a deceptive appearance.
27 (12) If the food bears or contains a coal-tar color other than one
28 from a batch that has been certified by the federal Food and Drug
29 Administrator, as provided by regulations promulgated under
30 authority of the Federal Act.
31 (13) If the food is a confectionery and has partially or completely
32 imbedded embedded in the food any nonnutritive object.
33 However, this subdivision does not apply in the case of any
34 nonnutritive object if, in the judgment of the state department as
35 provided by rules, the nonnutritive object is of practical,
36 functional value to the confectionery product and would not make
37 the product injurious or hazardous to health.
38 (14) If the food is a confectionery and bears or contains any
39 alcohol other than alcohol not in excess of one-half of one percent
40 (0.5%) by volume derived solely from the use of flavoring
41 extracts.
42 (15) If the food is a confectionery and bears or contains any
ES 478—LS 6068/DI 120 32
1 nonnutritive substance. However, this subdivision does not apply
2 to a safe, nonnutritive substance if:
3 (A) the nonnutritive substance is in or on a confectionery for
4 a practical, functional purpose in the manufacture, packaging,
5 or storing of the confectionery; and
6 (B) the use of the substance does not promote deception of the
7 consumer or otherwise result in adulteration or misbranding in
8 violation of any provision of IC 16-42-1 through IC 16-42-4.
9 In addition, the state department may, for the purpose of
10 avoiding or resolving uncertainty as to the application of this
11 subdivision, adopt rules allowing or prohibiting the use of
12 particular nonnutritive substances.
13 (16) If the food falls below the standard of purity, quality, or
14 strength that the food purports or is represented to possess.
15 (17) If the food is or bears or contains any color additive that is
16 unsafe under section 5 of this chapter.
17 (b) Subsection (a)(8) and (a)(9) do not prohibit:
18 (1) the removal of butterfat from; or
19 (2) the addition of skim milk to;
20 dairy products that comply with the definitions and standards for dairy
21 products adopted by the state department.
22 (c) A food is not considered adulterated for containing low THC
23 hemp extract (as defined in IC 35-48-1-17.5) or craft hemp flower
24 (as defined in IC 35-31.5-2-68.8).
25 SECTION 17. IC 24-4-21-3, AS AMENDED BY P.L.190-2019,
26 SECTION 24, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
27 JULY 1, 2025]: Sec. 3. A person may distribute low THC hemp extract
28 in Indiana only if the distributor has a certificate of analysis prepared
29 by an independent testing laboratory showing:
30 (1) that the low THC hemp extract is the product of a batch tested
31 by the independent testing laboratory;
32 (2) that the independent testing laboratory determined that the
33 batch contained not more than three-tenths percent (0.3%) total
34 delta-9-tetrahydrocannabinol (THC), including precursors by
35 weight or volume, based on the testing of a random sample of the
36 batch; and
37 (3) the cannabidiol percent present of the low THC hemp extract.
38 SECTION 18. IC 24-4-21-4, AS ADDED BY P.L.153-2018,
39 SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
40 JULY 1, 2025]: Sec. 4. (a) Except as provided in subsection (b), low
41 THC hemp extract must be distributed in packaging that contains the
42 following information:
ES 478—LS 6068/DI 120 33
1 (1) A scannable bar code or QR code linked to a document that
2 contains information with respect to the manufacture of the low
3 THC hemp extract, including the:
4 (A) batch identification number;
5 (B) product name;
6 (C) batch date;
7 (D) expiration date, which must be not more than two (2) years
8 from the date of manufacture;
9 (E) batch size;
10 (F) total quantity produced;
11 (G) ingredients used, including the:
12 (i) ingredient name;
13 (ii) name of the company that manufactured the ingredient;
14 (iii) company or product identification number or code, if
15 applicable; and
16 (iv) ingredient lot number; and
17 (H) download link for a certificate of analysis for the low THC
18 hemp extract.
19 (2) The batch number.
20 (3) The Internet address of a web site website to obtain batch
21 information.
22 (4) The expiration date.
23 (5) The number of milligrams of low THC hemp extract.
24 (6) The manufacturer.
25 (7) The fact that the product contains not more than three-tenths
26 of one percent (0.3%) total delta-9-tetrahydrocannabinol (THC),
27 including precursors, by weight or volume.
28 (b) Before July 1, 2018, low THC hemp extract may be distributed
29 in Indiana without having met the requirements described in subsection
30 (a).
31 (b) After June 30, 2025, the packaging of low THC hemp extract
32 may not:
33 (1) contain any statement, artwork, or design that could
34 reasonably mislead any person to believe that the package
35 contains anything other than low THC hemp extract; or
36 (2) bear an unauthorized trademark, trade name, famous
37 mark, or other identifying mark, imprint, or device, or any
38 likeness thereof.
39 SECTION 19. IC 24-4-22-3, AS ADDED BY P.L.153-2018,
40 SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
41 JULY 1, 2025]: Sec. 3. (a) Except as provided in subsection (b), A
42 person may sell low THC hemp extract at retail only if the packaging
ES 478—LS 6068/DI 120 34
1 complies with the requirements of IC 24-4-21-4.
2 (b) Before July 1, 2018, a person may sell low THC hemp extract at
3 retail even if the packaging does not comply with the requirements of
4 IC 24-4-21-4.
5 (b) Beginning July 1, 2025, no low THC hemp extract may be
6 distributed, sold, or offered for sale at retail or online to a person
7 who is less than twenty-one (21) years of age.
8 (c) Any website owned, managed, or operated by a person who
9 distributes or sells a low THC hemp extract directly to consumers
10 must verify a consumer's age by either using a reliable online age
11 verification service, or by obtaining and examining a copy of a
12 government issued identification, prior to completing a purchase.
13 (d) A person who violates this section is subject to a civil penalty
14 not to exceed the following:
15 (1) One thousand dollars ($1,000) for a first violation.
16 (2) Five thousand dollars ($5,000) for a second violation that
17 occurs within two (2) years after a first violation, and
18 suspension of the retail dealer's certificate for up to six (6)
19 months.
20 (3) Ten thousand dollars ($10,000) for each subsequent
21 violation that occurs within two (2) years of the preceding
22 violation, and revocation of the retail dealer's certificate, with
23 a one (1) year waiting period for reapplication.
24 (e) It is a defense to a violation under this section that the
25 distributor or seller examined the purchaser's or recipient's
26 driver's license, or other valid government issued identification,
27 that positively identified the purchaser or recipient as being at least
28 twenty-one (21) years of age.
29 SECTION 20. IC 24-4-24.9 IS ADDED TO THE INDIANA CODE
30 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
31 JULY 1, 2025]:
32 Chapter 24.9. Distribution of Craft Hemp Flower Products
33 Sec. 1. As used in this chapter, "certificate of analysis" means
34 a certificate from an independent testing laboratory describing the
35 results of the laboratory's testing of a sample.
36 Sec. 2. As used in this chapter, "craft hemp flower product" has
37 the meaning set forth in IC 35-31.5-2-68.9.
38 Sec. 3. As used in this chapter, "independent testing laboratory"
39 means a laboratory:
40 (1) with respect to which no person having a direct or indirect
41 interest in the laboratory also has a direct or indirect interest
42 in a facility that:
ES 478—LS 6068/DI 120 35
1 (A) processes, distributes, or sells a craft hemp flower
2 product, or a substantially similar substance in another
3 jurisdiction;
4 (B) cultivates, processes, distributes, dispenses, or sells
5 marijuana;
6 (C) cultivates, processes, or distributes hemp; or
7 (D) processes, distributes, or sells low THC hemp extract
8 (as defined in IC 35-48-1-17.5); and
9 (2) that is accredited as a testing laboratory under
10 International Organization for Standardization (ISO) 17025
11 by a third party accrediting body such as the American
12 Association for Laboratory Accreditation (A2LA) or Assured
13 Calibration and Laboratory Accreditation Select Services
14 (ACLASS).
15 Sec. 4. As used in this chapter, "tamper evident packaging"
16 means a package having at least one (1) indicator or a barrier to
17 entry that, if breached or missing, can reasonably be expected to
18 provide visible evidence to consumers that tampering has occurred.
19 Sec. 5. (a) Before a person may distribute a craft hemp flower
20 product, the distributor must have a certificate of analysis
21 prepared by an independent testing laboratory showing the
22 following:
23 (1) That the craft hemp flower product is the product of a
24 batch tested by the independent testing laboratory.
25 (2) That the independent testing laboratory determined that
26 the batch contained not more than three-tenths of one percent
27 (0.3%) tetrahydrocannabinol (THC), by weight or volume,
28 based on the testing of a random sample of the batch.
29 (3) That the batch has been tested for and does not exceed the
30 acceptable levels set forth under section 7 of this chapter for
31 the following contaminants:
32 (A) Heavy metals, including cadmium, lead, arsenic, and
33 mercury.
34 (B) Pesticides.
35 (C) Herbicides.
36 (D) Mycotoxins.
37 (E) Bacterial toxins.
38 (F) Chemical solvent residues.
39 (4) The potency of the craft hemp flower product, including
40 the projected percentage of:
41 (A) THC;
42 (B) cannabidiol; and
ES 478—LS 6068/DI 120 36
1 (C) other cannabinoids in the craft hemp flower product;
2 by weight or volume.
3 (b) Each batch of a craft hemp flower product submitted to an
4 independent testing laboratory under this section must have been
5 harvested at the same time and cultivated in a contiguous area in
6 the same field or facility.
7 Sec. 6. A craft hemp flower product must be distributed in
8 tamper evident packaging that contains the following information:
9 (1) A scannable bar code or QR code linked to a document
10 that contains information with respect to the craft hemp
11 flower product, including the:
12 (A) batch identification number;
13 (B) product name;
14 (C) batch date;
15 (D) expiration date, which must be not more than two (2)
16 years from the date of harvest;
17 (E) batch size;
18 (F) total quantity produced;
19 (G) ingredients used, including the:
20 (i) ingredient name;
21 (ii) name of the company that manufactured the
22 ingredient;
23 (iii) company or product identification number or code,
24 if applicable; and
25 (iv) ingredient lot number; and
26 (H) download link for a certificate of analysis for the craft
27 hemp flower product.
28 (2) The batch identification number.
29 (3) The address of a website to obtain batch information.
30 (4) The expiration date, which must be not more than two (2)
31 years from the date of harvest.
32 (5) The number of grams of craft hemp flower (as defined by
33 IC 35-31.5-2-68.8) contained in the craft hemp flower product.
34 (6) The facility that produced the craft hemp flower product.
35 (7) The fact that the product contains not more than
36 three-tenths of one percent (0.3%) tetrahydrocannabinol
37 (THC), by weight or volume.
38 Sec. 7. A craft hemp flower product may not be distributed if a
39 certificate of analysis prepared by an independent testing
40 laboratory shows any of the following:
41 (1) A concentration of metals that is more than any of the
42 following:
ES 478—LS 6068/DI 120 37
1 (A) Four-tenths (0.4) part per million of cadmium.
2 (B) Five-tenths (0.5) part per million of lead.
3 (C) Four-tenths (0.4) part per million of arsenic.
4 (D) Two-tenths (0.2) part per million of mercury.
5 (2) A concentration of microbiological units that is more than
6 any of the following:
7 (A) One (1) colony forming unit per gram of Shiga-Toxin
8 Escherichia coli.
9 (B) One (1) colony forming unit per gram of Salmonella
10 spp.
11 (C) Ten thousand (10,000) colony forming units of
12 culturable mold.
13 (3) A concentration of residual solvents and chemicals that is
14 not more than any of the following:
15 (A) Five thousand (5,000) parts per million of butane.
16 (B) Two (2) parts per million of benzene.
17 (C) Five thousand (5,000) parts per million of heptane.
18 (D) Two hundred ninety (290) parts per million of hexane.
19 (E) Eight hundred ninety (890) parts per million of toluene.
20 (F) One (1) part per million of total xylenes, including
21 ortho-xylene, meta-xylene, and para-xylene.
22 Sec. 8. (a) A person who knowingly or intentionally distributes
23 or sells a craft hemp flower product in violation of this chapter
24 commits a Class B misdemeanor. However, the offense is a Class
25 A misdemeanor if the person has a prior unrelated conviction for
26 a violation of this chapter.
27 (b) The penalties in this section are in addition to any criminal
28 penalties that may be imposed for unlawful possession or
29 distribution of a controlled substance.
30 SECTION 21. IC 34-30-2.1-72, AS ADDED BY P.L.105-2022,
31 SECTION 12, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
32 JULY 1, 2025]: Sec. 72. IC 7.1-5-10-15 (Concerning alcoholic
33 beverage permittee or permittee's agent refusing to serve alcoholic
34 beverages or craft hemp product to certain persons).
35 SECTION 22. IC 34-30-2.1-73, AS ADDED BY P.L.105-2022,
36 SECTION 12, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
37 JULY 1, 2025]: Sec. 73. IC 7.1-5-10-15.5 (Concerning persons who
38 furnish an alcoholic beverage or craft hemp product for damages
39 caused by an impaired or intoxicated person).
40 SECTION 23. IC 35-31.5-2-68.8 IS ADDED TO THE INDIANA
41 CODE AS A NEW SECTION TO READ AS FOLLOWS
42 [EFFECTIVE JULY 1, 2025]: Sec. 68.8. (a) "Craft hemp flower"
ES 478—LS 6068/DI 120 38
1 means the harvested reproductive organ, whether immature or
2 mature, of the female Cannabis sativa L. plant containing not more
3 than three-tenths of one percent (0.3%) of tetrahydrocannabinol
4 (THC), including precursors of THC, by weight or volume, in a
5 form that is intended to allow THC to be introduced into the
6 human body by inhalation of smoke.
7 (b) The term does not include agricultural hemp seed (as defined
8 in IC 15-15-13-2).
9 SECTION 24. IC 35-31.5-2-68.9 IS ADDED TO THE INDIANA
10 CODE AS A NEW SECTION TO READ AS FOLLOWS
11 [EFFECTIVE JULY 1, 2025]: Sec. 68.9. (a) "Craft hemp flower
12 product" means a substance or product for sale to consumers that:
13 (1) is derived from or contains any part of craft hemp flower;
14 (2) contains not more than three-tenths of one percent (0.3%)
15 of delta-8, delta-9, delta-10, or hexahydrocannabinol
16 tetrahydrocannabinol (THC), by weight or volume;
17 (3) contains no other controlled substances; and
18 (4) is in the form of:
19 (A) a gummy that contains not more than one hundred
20 (100) milligrams of THC per serving and not more than
21 three thousand (3,000) milligrams of THC per package;
22 (B) an edible that contains not more than one hundred
23 (100) milligrams of THC per individualized unit and not
24 more than three thousand (3,000) milligrams of THC per
25 package;
26 (C) a drink that contains not more than twenty-five (25)
27 milligrams of THC per individualized unit and not more
28 than six hundred (600) milligrams of THC per package;
29 (D) a tincture that contains not more than one hundred
30 (100) milligrams of THC per serving and not more than
31 three thousand (3,000) milligrams of THC per package; or
32 (E) an e-liquid that contains not more than three (3) grams
33 of THC per device.
34 The term does not include smokable hemp.
35 (b) A variance of up to twenty percent (20%) from the
36 milligram limits described in subsection (a) is permitted to account
37 for testing variability and manufacturing tolerances.
38 SECTION 25. IC 35-31.5-2-100, AS AMENDED BY P.L.49-2020,
39 SECTION 25, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
40 JULY 1, 2025]: Sec. 100. (a) "Distribute", for purposes of
41 IC 35-45-4-8, has the meaning set forth in IC 35-45-4-8.
42 (b) "Distribute", for purposes of IC 35-46-1-10, has the meaning set
ES 478—LS 6068/DI 120 39
1 forth in IC 35-46-1-10(f). IC 35-46-1-10(a).
2 (c) "Distribute", for purposes of IC 35-46-1-10.2, has the meaning
3 set forth in IC 35-46-1-10.2(g). IC 35-46-1-10.2(a).
4 (d) "Distribute", for purposes of IC 35-47.5, has the meaning set
5 forth in IC 35-47.5-2-6.
6 (e) "Distribute", for purposes of IC 35-48, has the meaning set forth
7 in IC 35-48-1-14.
8 (f) "Distribute", for purposes of IC 35-49, has the meaning set forth
9 in IC 35-49-1-2.
10 SECTION 26. IC 35-31.5-2-189.9, AS ADDED BY P.L.153-2018,
11 SECTION 14, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
12 JULY 1, 2025]: Sec. 189.9. "Low THC hemp extract", for purposes of
13 IC 35-46 and IC 35-48, has the meaning set forth in IC 35-48-1-17.5.
14 SECTION 27. IC 35-46-1-10, AS AMENDED BY P.L.32-2021,
15 SECTION 97, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
16 JULY 1, 2025]: Sec. 10. (a) As used in this section, "distribute"
17 means to give tobacco, a craft hemp flower product, an e-liquid, or
18 an electronic cigarette to another person as a means of promoting,
19 advertising, or marketing the tobacco, craft hemp flower product,
20 e-liquid, or electronic cigarette to the general public.
21 (a) (b) A person may not be charged with a violation under this
22 section and a violation under IC 7.1-7-6-5.
23 (b) (c) A person who knowingly:
24 (1) sells or distributes tobacco, a craft hemp flower product, an
25 e-liquid, or an electronic cigarette to a person less than
26 twenty-one (21) years of age; or
27 (2) purchases tobacco, a craft hemp flower product, an e-liquid,
28 or an electronic cigarette for delivery to another person who is
29 less than twenty-one (21) years of age;
30 commits a Class C infraction. For a sale to take place under this
31 section, the buyer must pay the seller for the tobacco, craft hemp
32 flower product, e-liquid, or electronic cigarette.
33 (c) (d) It is not a defense that the person to whom the tobacco, craft
34 hemp flower product, e-liquid, or electronic cigarette was sold or
35 distributed did not smoke, chew, inhale, or otherwise consume the
36 tobacco, craft hemp flower product, e-liquid, or electronic cigarette.
37 (d) (e) The following defenses are available to a person accused of
38 selling or distributing tobacco, a craft hemp flower product, an
39 e-liquid, or an electronic cigarette to a person who is less than
40 twenty-one (21) years of age:
41 (1) The buyer or recipient produced a driver's license bearing the
42 purchaser's or recipient's photograph, showing that the purchaser
ES 478—LS 6068/DI 120 40
1 or recipient was of legal age to make the purchase.
2 (2) The buyer or recipient produced a photographic identification
3 card issued under IC 9-24-16-1, or a similar card issued under the
4 laws of another state or the federal government, showing that the
5 purchaser or recipient was of legal age to make the purchase.
6 (3) The appearance of the purchaser or recipient was such that an
7 ordinary prudent person would believe that the purchaser or
8 recipient was not less than thirty (30) years of age.
9 (e) (f) It is a defense that the accused person sold or delivered the
10 tobacco, craft hemp flower product, e-liquid, or electronic cigarette
11 to a person who acted in the ordinary course of employment or a
12 business concerning tobacco, a craft hemp flower product, an
13 e-liquid, or electronic cigarettes including the following activities:
14 (1) Agriculture.
15 (2) Processing.
16 (3) Transporting.
17 (4) Wholesaling.
18 (5) Retailing.
19 (f) As used in this section, "distribute" means to give tobacco, an
20 e-liquid, or an electronic cigarette to another person as a means of
21 promoting, advertising, or marketing the tobacco, e-liquid, or electronic
22 cigarette to the general public.
23 (g) Unless the person buys or receives tobacco, a craft hemp
24 flower product, an e-liquid, or an electronic cigarette under the
25 direction of a law enforcement officer as part of an enforcement action,
26 a person who sells or distributes tobacco, a craft hemp flower
27 product, an e-liquid, or an electronic cigarette is not liable for a
28 violation of this section unless the person less than twenty-one (21)
29 years of age who bought or received the tobacco, craft hemp flower
30 product, e-liquid, or electronic cigarette is issued a citation or
31 summons under section 10.5 of this chapter.
32 (h) Notwithstanding IC 34-28-5-5(c), civil penalties collected under
33 this section must be deposited in the Richard D. Doyle youth tobacco
34 education and enforcement fund (IC 7.1-6-2-6).
35 SECTION 28. IC 35-46-1-10.2, AS AMENDED BY P.L.32-2021,
36 SECTION 98, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
37 JULY 1, 2025]: Sec. 10.2. (a) As used in this section, "distribute"
38 means to give tobacco, a craft hemp flower product, an e-liquid, or
39 an electronic cigarette to another person as a means of promoting,
40 advertising, or marketing the tobacco, craft hemp flower product,
41 e-liquid, or electronic cigarette to the general public.
42 (a) (b) A person may not be charged with a violation under this
ES 478—LS 6068/DI 120 41
1 section and a violation under IC 7.1-7-6-5.
2 (b) (c) A retail establishment that sells or distributes tobacco, a
3 craft hemp flower product, an e-liquid, or an electronic cigarette to
4 a person less than twenty-one (21) years of age commits a Class C
5 infraction. For a sale to take place under this section, the buyer must
6 pay the retail establishment for the tobacco, craft hemp flower
7 product, e-liquid, or electronic cigarette.
8 (c) (d) Notwithstanding IC 34-28-5-4(c), a civil judgment for an
9 infraction committed under this section must be imposed as follows:
10 (1) If the retail establishment at that specific business location has
11 not been issued a citation or summons for a violation of this
12 section in the previous one (1) year, a civil penalty of up to four
13 hundred dollars ($400).
14 (2) If the retail establishment at that specific business location has
15 had one (1) citation or summons issued for a violation of this
16 section in the previous one (1) year, a civil penalty of up to eight
17 hundred dollars ($800).
18 (3) If the retail establishment at that specific business location has
19 had two (2) citations or summonses issued for a violation of this
20 section in the previous one (1) year, a civil penalty of up to one
21 thousand four hundred dollars ($1,400).
22 (4) If the retail establishment at that specific business location has
23 had three (3) or more citations or summonses issued for a
24 violation of this section in the previous one (1) year, a civil
25 penalty of up to two thousand dollars ($2,000).
26 A retail establishment may not be issued a citation or summons for a
27 violation of this section more than once every twenty-four (24) hours
28 for each specific business location.
29 (d) (e) It is not a defense that the person to whom the tobacco, craft
30 hemp flower product, e-liquid, or electronic cigarette was sold or
31 distributed did not smoke, chew, inhale, or otherwise consume the
32 tobacco, craft hemp flower product, e-liquid, or electronic cigarette.
33 (e) (f) The following defenses are available to a retail establishment
34 accused of selling or distributing tobacco, a craft hemp flower
35 product, an e-liquid, or an electronic cigarette to a person who is less
36 than twenty-one (21) years of age:
37 (1) The buyer or recipient produced a driver's license bearing the
38 purchaser's or recipient's photograph showing that the purchaser
39 or recipient was of legal age to make the purchase.
40 (2) The buyer or recipient produced a photographic identification
41 card issued under IC 9-24-16-1 or a similar card issued under the
42 laws of another state or the federal government showing that the
ES 478—LS 6068/DI 120 42
1 purchaser or recipient was of legal age to make the purchase.
2 (3) The appearance of the purchaser or recipient was such that an
3 ordinary prudent person would believe that the purchaser or
4 recipient was not less than thirty (30) years of age.
5 (f) (g) It is a defense that the accused retail establishment sold or
6 delivered the tobacco, craft hemp flower product, e-liquid, or
7 electronic cigarette to a person who acted in the ordinary course of
8 employment or a business concerning tobacco, a craft hemp flower
9 product, an e-liquid, or electronic cigarettes for the following
10 activities:
11 (1) Agriculture.
12 (2) Processing.
13 (3) Transporting.
14 (4) Wholesaling.
15 (5) Retailing.
16 (g) As used in this section, "distribute" means to give tobacco, an
17 e-liquid, or an electronic cigarette to another person as a means of
18 promoting, advertising, or marketing the tobacco or electronic cigarette
19 to the general public.
20 (h) Unless a person buys or receives tobacco, a craft hemp flower
21 product, an e-liquid, or an electronic cigarette under the direction of
22 a law enforcement officer as part of an enforcement action, a retail
23 establishment that sells or distributes tobacco, a craft hemp flower
24 product, an e-liquid, or an electronic cigarette is not liable for a
25 violation of this section unless the person less than twenty-one (21)
26 years of age who bought or received the tobacco, craft hemp flower
27 product, e-liquid, or electronic cigarette is issued a citation or
28 summons under section 10.5 of this chapter.
29 (i) Notwithstanding IC 34-28-5-5(c), civil penalties collected under
30 this section must be deposited in the Richard D. Doyle youth tobacco
31 education and enforcement fund (IC 7.1-6-2-6).
32 (j) A person who violates subsection (b) (c) at least six (6) times in
33 any one (1) year commits habitual illegal sale of tobacco, sales, a Class
34 B infraction.
35 SECTION 29. IC 35-46-1-10.5, AS AMENDED BY P.L.49-2020,
36 SECTION 32, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
37 JULY 1, 2025]: Sec. 10.5. (a) A person less than twenty-one (21) years
38 of age who:
39 (1) purchases tobacco, an e-liquid, or an electronic cigarette;
40 (2) accepts tobacco, an e-liquid, or an electronic cigarette for
41 personal use; or
42 (3) possesses tobacco, an e-liquid, or an electronic cigarette on
ES 478—LS 6068/DI 120 43
1 the person's person;
2 commits a Class C infraction.
3 (b) It is a defense under subsection (a) that the accused person acted
4 in the ordinary course of employment in a business concerning tobacco,
5 an e-liquid, or an electronic cigarette for the following activities:
6 (1) Agriculture.
7 (2) Processing.
8 (3) Transporting.
9 (4) Wholesaling.
10 (5) Retailing.
11 (c) A person less than twenty-one (21) years of age who:
12 (1) purchases a product that contains THC, including low
13 THC hemp extract, craft hemp flower, or a craft hemp flower
14 product;
15 (2) accepts a product that contains THC, including low THC
16 hemp extract, craft hemp flower, or a craft hemp flower
17 product, for personal use; or
18 (3) possesses a product that contains THC, including low THC
19 hemp extract, craft hemp flower, or a craft hemp flower
20 product, on the person's person;
21 commits a Class C infraction.
22 SECTION 30. IC 35-46-1-11.7, AS AMENDED BY P.L.56-2023,
23 SECTION 324, IS AMENDED TO READ AS FOLLOWS
24 [EFFECTIVE JULY 1, 2025]: Sec. 11.7. (a) A retail establishment in
25 which tobacco products, electronic cigarettes, and e-liquids, and craft
26 hemp products account for at least eighty-five percent (85%) of the
27 retail establishment's gross sales may not allow an individual who is
28 less than twenty-one (21) years of age to enter the retail establishment.
29 (b) An individual who is less than twenty-one (21) years of age may
30 not enter a retail establishment described in subsection (a).
31 (c) A retail establishment described in subsection (a) must
32 conspicuously post on all entrances to the retail establishment the
33 following:
34 (1) A sign in boldface type that states "NOTICE: It is unlawful for
35 a person less than 21 years old to enter this store.".
36 (2) A sign printed in letters and numbers at least one-half (1/2)
37 inch high that displays a toll free phone number for assistance to
38 callers in quitting smoking, as determined by the Indiana
39 department of health.
40 (d) A person who violates this section commits a Class C infraction.
41 Notwithstanding IC 34-28-5-4(c), a civil judgment for an infraction
42 committed under this section must be imposed as follows:
ES 478—LS 6068/DI 120 44
1 (1) If the person has not been cited for a violation of this section
2 in the previous one (1) year, a civil penalty of up to four hundred
3 dollars ($400).
4 (2) If the person has had one (1) violation in the previous one (1)
5 year, a civil penalty of up to eight hundred dollars ($800).
6 (3) If the person has had two (2) violations in the previous one (1)
7 year, a civil penalty of up to one thousand four hundred dollars
8 ($1,400).
9 (4) If the person has had three (3) or more violations in the
10 previous one (1) year, a civil penalty of up to two thousand dollars
11 ($2,000).
12 A person may not be cited more than once every twenty-four (24)
13 hours.
14 (e) Notwithstanding IC 34-28-5-5(c), civil penalties collected under
15 this section must be deposited in the Richard D. Doyle youth tobacco
16 education and enforcement fund established under IC 7.1-6-2-6.
17 (f) A person who violates subsection (a) at least six (6) times in any
18 one (1) year period commits habitual illegal entrance by a minor, a
19 Class B infraction.
20 SECTION 31. IC 35-48-1-9, AS AMENDED BY P.L.153-2018,
21 SECTION 17, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
22 JULY 1, 2025]: Sec. 9. "Controlled substance" means a drug,
23 substance, or immediate precursor in schedule I, II, III, IV, or V under:
24 (1) IC 35-48-2-4, IC 35-48-2-6, IC 35-48-2-8, IC 35-48-2-10, or
25 IC 35-48-2-12, if IC 35-48-2-14 does not apply; or
26 (2) a rule adopted by the board, if IC 35-48-2-14 applies.
27 The term does not include low THC hemp extract or a craft hemp
28 flower product.
29 SECTION 32. IC 35-48-1-9.3, AS AMENDED BY P.L.80-2019,
30 SECTION 18, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
31 JULY 1, 2025]: Sec. 9.3. (a) "Controlled substance analog" means a
32 substance that, due to its chemical structure and potential for abuse or
33 misuse, meets the following criteria:
34 (1) The substance is substantially similar to a controlled substance
35 classified under IC 35-48-2.
36 (2) The substance has a narcotic, stimulant, depressant, or
37 hallucinogenic effect on the central nervous system or is
38 represented or intended to have a narcotic, stimulant, depressant,
39 or hallucinogenic effect on the central nervous system
40 substantially similar to or greater than that of a controlled
41 substance classified under IC 35-48-2.
42 (b) The definition set forth in subsection (a) does not include:
ES 478—LS 6068/DI 120 45
1 (1) a controlled substance;
2 (2) a legend drug;
3 (3) a substance for which there is an approved new drug
4 application;
5 (4) any compound, mixture, or preparation that contains any
6 controlled substance, that is not for administration to a human
7 being or an animal, and that is packaged in a form or
8 concentration, or with adulterants or denaturants, such that as
9 packaged it does not present any significant potential for abuse;
10 or
11 (5) a substance to which an investigational exemption applies
12 under Section 505 of the federal Food, Drug and Cosmetic Act
13 (chapter 675, 52 Stat. 1052 (21 U.S.C. 355)), but only to the
14 extent that conduct with respect to the substance is pursuant to the
15 exemption; or
16 (6) low THC hemp extract; or
17 (7) a craft hemp flower product.
18 (c) For purposes of subsection (a), "substantially similar", as it
19 applies to the chemical structure of a substance, means that the
20 chemical structure of the substance, when compared to the structure of
21 a controlled substance, has a single difference in the structural formula
22 that substitutes one (1) atom or functional group for another, including:
23 (1) one (1) halogen for another halogen;
24 (2) one (1) hydrogen for a halogen;
25 (3) one (1) halogen for a hydrogen; or
26 (4) an alkyl group added or deleted:
27 (A) as a side chain to or from a molecule; or
28 (B) from a side chain of a molecule.
29 SECTION 33. IC 35-48-1-10 IS AMENDED TO READ AS
30 FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 10. (a) "Counterfeit
31 substance", for purposes of IC 35-48-4-5, means a controlled
32 substance which, or the container or labeling of which, without
33 authorization, bears the trademark, trade name, or other identifying
34 mark, imprint, number, or device, or any likeness thereof, of a
35 manufacturer, distributor, or dispenser other than the person who in
36 fact manufactured, distributed, or dispensed the substance.
37 (b) "Counterfeit substance", for purposes of IC 35-48-4-5.5,
38 means hemp flower or a hemp flower product which, or the
39 container or labeling of which, without authorization, bears the
40 trademark, trade name, or other identifying mark, imprint,
41 number, or device, or any likeness thereof, of a manufacturer,
42 distributor, or dispenser other than the person who in fact
ES 478—LS 6068/DI 120 46
1 manufactured, distributed, or dispensed the substance.
2 SECTION 34. IC 35-48-1-10.5 IS ADDED TO THE INDIANA
3 CODE AS A NEW SECTION TO READ AS FOLLOWS
4 [EFFECTIVE JULY 1, 2025]: Sec. 10.5. "Craft hemp flower
5 product" has the meaning set forth in IC 35-31.5-2-68.9.
6 SECTION 35. IC 35-48-1-16.8, AS ADDED BY P.L.153-2018,
7 SECTION 19, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
8 JULY 1, 2025]: Sec. 16.8. "Hashish" does not include:
9 (1) low THC hemp extract; or
10 (2) a craft hemp flower product.
11 SECTION 36. IC 35-48-1-17.2 IS REPEALED [EFFECTIVE JULY
12 1, 2025]. Sec. 17.2. (a) "Hemp bud" means the harvested immature
13 reproductive organ of the female hemp plant.
14 (b) The term does not include agricultural hemp seed.
15 SECTION 37. IC 35-48-1-17.3 IS REPEALED [EFFECTIVE JULY
16 1, 2025]. Sec. 17.3. (a) "Hemp flower" means the harvested
17 reproductive organ, whether immature or mature, of the female hemp
18 plant.
19 (b) The term does not include agricultural hemp seed.
20 SECTION 38. IC 35-48-1-17.5, AS AMENDED BY P.L.190-2019,
21 SECTION 28, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
22 JULY 1, 2025]: Sec. 17.5. (a) "Low THC hemp extract" means a
23 substance or compound that:
24 (1) is derived from or contains any part of the plant Cannabis
25 sativa L. that meets the definition of hemp under IC 15-15-13-6;
26 (2) contains not more than three-tenths of one percent (0.3%)
27 total delta-9-tetrahydrocannabinol (THC), including precursors,
28 by weight or volume; and
29 (3) contains no other controlled substances.
30 (b) The term does not include:
31 (1) the harvested reproductive organ, whether immature or
32 mature, of the female hemp plant; or
33 (2) smokable hemp. a craft hemp flower product; or
34 (3) smokable hemp.
35 SECTION 39. IC 35-48-1-19, AS AMENDED BY P.L.190-2019,
36 SECTION 29, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
37 JULY 1, 2025]: Sec. 19. (a) "Marijuana" means any part of the plant
38 genus Cannabis whether growing or not; the seeds thereof; the resin
39 extracted from any part of the plant, including hashish and hash oil; any
40 compound, manufacture, salt, derivative, mixture, or preparation of the
41 plant, its seeds or resin.
42 (b) The term does not include:
ES 478—LS 6068/DI 120 47
1 (1) the mature stalks of the plant;
2 (2) fiber produced from the stalks;
3 (3) oil or cake made from the seeds of the plant;
4 (4) any other compound, manufacture, salt, derivative, mixture,
5 or preparation of the mature stalks (except the resin extracted
6 therefrom);
7 (5) the sterilized seed of the plant which is incapable of
8 germination;
9 (6) hemp (as defined by IC 15-15-13-6);
10 (7) low THC hemp extract; or
11 (8) smokable hemp. a craft hemp flower product; or
12 (9) smokable hemp.
13 SECTION 40. IC 35-48-1-26.6, AS ADDED BY P.L.190-2019,
14 SECTION 30, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
15 JULY 1, 2025]: Sec. 26.6. (a) Except as provided in subsection (b),
16 "smokable hemp" means a product, plant, or a part of a plant
17 containing not more than three-tenths of one percent (0.3%)
18 delta-9-tetrahydrocannabinol (THC), tetrahydrocannabinol (THC),
19 including precursors and derivatives of THC, in a form that allows
20 THC to be introduced into the human body by inhalation of smoke.
21 Except as provided in subsection (b), the term includes craft hemp
22 flower.
23 (1) hemp bud; and
24 (2) hemp flower.
25 (b) The term does not include a craft hemp flower product (as
26 defined by IC 35-31.5-2-68.9), or:
27 (1) a hemp plant that is; or
28 (2) parts of a hemp plant that are; or
29 (3) craft hemp flower that is;
30 grown or handled by a licensee for processing or manufacturing into a
31 legal hemp product, including a craft hemp flower product.
32 SECTION 41. IC 35-48-4-5.5 IS ADDED TO THE INDIANA
33 CODE AS A NEW SECTION TO READ AS FOLLOWS
34 [EFFECTIVE JULY 1, 2025]: Sec. 5.5. A person who:
35 (1) knowingly or intentionally:
36 (A) creates;
37 (B) delivers; or
38 (C) finances the delivery of;
39 a counterfeit substance; or
40 (2) possesses, with intent to:
41 (A) deliver; or
42 (B) finance the delivery of;
ES 478—LS 6068/DI 120 48
1 a counterfeit substance;
2 commits dealing in a counterfeit hemp substance, a Class A
3 misdemeanor. However, a person may be convicted of an offense
4 under subdivision (2) only if there is evidence in addition to the
5 weight of the counterfeit substance that the person intended to
6 deliver or finance the delivery of the counterfeit substance.
7 SECTION 42. IC 35-52-7-97.1 IS ADDED TO THE INDIANA
8 CODE AS A NEW SECTION TO READ AS FOLLOWS
9 [EFFECTIVE JULY 1, 2025]: Sec. 97.1. IC 7.1-8-8-1, IC 7.1-8-8-2,
10 and IC 7.1-8-8-3 define crimes concerning craft hemp product.
11 SECTION 43. IC 35-52-24-20.4 IS ADDED TO THE INDIANA
12 CODE AS A NEW SECTION TO READ AS FOLLOWS
13 [EFFECTIVE JULY 1, 2025]: Sec. 20.4. IC 24-4-24.9-8 defines a
14 crime concerning distribution or sale of craft hemp flower
15 products.
16 SECTION 44. An emergency is declared for this act.
ES 478—LS 6068/DI 120 49
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
ES 478—LS 6068/DI 120 50
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
ES 478—LS 6068/DI 120 51
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.
ES 478—LS 6068/DI 120 52
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
ES 478—LS 6068/DI 120 53
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:
ES 478—LS 6068/DI 120 54
(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.
ES 478—LS 6068/DI 120 55
(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.
ES 478—LS 6068/DI 120 56
(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
ES 478—LS 6068/DI 120 57
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.
ES 478—LS 6068/DI 120 58
(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.
ES 478—LS 6068/DI 120 59
(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.
ES 478—LS 6068/DI 120 60
(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,
ES 478—LS 6068/DI 120 61
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
ES 478—LS 6068/DI 120 62
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
ES 478—LS 6068/DI 120 63
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
ES 478—LS 6068/DI 120 64
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
ES 478—LS 6068/DI 120 65
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
ES 478—LS 6068/DI 120 66
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,
ES 478—LS 6068/DI 120 67
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
ES 478—LS 6068/DI 120 68
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,
ES 478—LS 6068/DI 120 69
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),
ES 478—LS 6068/DI 120 70
"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
ES 478—LS 6068/DI 120 71
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
ES 478—LS 6068/DI 120 72
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.
ES 478—LS 6068/DI 120 73
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:
ES 478—LS 6068/DI 120 74
(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,
ES 478—LS 6068/DI 120 75
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
_____
COMMITTEE REPORT
Mr. Speaker: Your Committee on Commerce, Small Business and
Economic Development, to which was referred Senate Bill 478, has
had the same under consideration and begs leave to report the same
back to the House 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 6-7-4-2, AS ADDED BY P.L.165-2021, SECTION
119, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2025]: Sec. 2. As used in this chapter, "consumable material" means
any liquid solution or other material used in an open system container
ES 478—LS 6068/DI 120 76
that is depleted as the vapor product is used. The term does not include:
(1) closed system cartridges (as defined in IC 6-7-2-0.5); and
(2) craft hemp (as defined in IC 7.1-8-1-1).
SECTION 2. IC 6-7-2-7.5, AS AMENDED BY THE TECHNICAL
CORRECTIONS BILL OF THE 2025 GENERAL ASSEMBLY, IS
AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2025]:
Sec. 7.5. (a) This section does not apply to a closed system cartridge
that contains craft hemp (as defined in IC 7.1-8-1-1).
(a) (b) A tax is imposed on the distribution of closed system
cartridges in Indiana at the rate of fifteen percent (15%) of the
wholesale price of the closed system cartridge. If a closed system
cartridge is sold in the same package as a vapor product device, the tax
imposed under this subsection shall only apply to the wholesale price
of the closed system cartridge if the wholesale cost of the closed system
cartridge can be isolated from the vapor product device on the invoice.
(b) (c) The distributor of closed system cartridges, including a
person that sells closed system cartridges through an Internet web site,
a website, is liable for the tax imposed under subsection (a). (b). The
tax is imposed at the time the distributor:
(1) brings or causes closed system cartridges to be brought into
Indiana for distribution;
(2) manufactures closed system cartridges in Indiana for
distribution; or
(3) transports closed system cartridges to retail dealers in Indiana
for resale by those retail dealers.
(c) (d) A consumer who purchases untaxed closed system cartridges
from a distributor or retailer is liable for the tax imposed under
subsection (a). (b).
SECTION 3. IC 6-7-2-7.7, AS ADDED BY P.L.137-2022,
SECTION 70, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 7.7. (a) This section does not apply to a taxable
product that contains craft hemp (as defined in IC 7.1-8-1-1).
(a) (b) The tax imposed under sections 7(a)(1), 7(b), and 7.5(a)
7.5(b) of this chapter shall also be imposed on the sale of taxable
products in Indiana by remote sellers, and shall be calculated based on
one (1) of the following methods:
(1) For remote sellers using an actual cost method, the tax shall
be calculated by applying the rate to the actual cost of each
individual product.
(2) For remote sellers using an actual cost list method, the tax
shall be calculated by applying the rate to the cost established for
each individual product in the remote seller's actual cost list.
ES 478—LS 6068/DI 120 77
(b) (c) The remote seller of taxable products is liable for the tax
imposed under section 7(a)(1), 7(b), or 7.5(a) 7.5(b) of this chapter.
(c) (d) The tax under this section shall be imposed at the time of
purchase by an ultimate consumer.".
Page 1, delete lines 9 through 17.
Delete page 2.
Page 3, delete lines 1 through 3.
Page 3, delete lines 38 through 42, begin a new paragraph and
insert:
"SECTION 10. IC 7.1-5-7-18 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2025]: Sec. 18. (a) A law enforcement officer
vested with full police powers and duties may engage an individual
who is:
(1) at least sixteen (16) years of age; and
(2) less than twenty-one (21) years of age;
to receive or purchase craft hemp, a product that contains low
THC hemp extract, or a product that contains craft hemp, as part
of an enforcement under this article.
(b) The initial or contemporaneous receipt or purchase of a
craft hemp product, a product that contains low THC hemp
extract, or a product that contains craft hemp may only:
(1) occur under the direction of a law enforcement officer
vested with full police powers and duties; and
(2) be part of an enforcement action.
SECTION 11. IC 7.1-5-10-15, AS AMENDED BY P.L.159-2014,
SECTION 80, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 15. (a) A person who, knowing that another
person is intoxicated, sells, barters, delivers, or gives away an alcoholic
beverage or a craft hemp product to the intoxicated person commits
a Class B misdemeanor.
(b) In any civil proceeding in which damages are sought from a
permittee or a permittee's agent for the refusal to serve a person an
alcoholic beverage or craft hemp product, it is a complete defense if
the permittee or agent reasonably believed that the person was
intoxicated or was otherwise not entitled to be served an alcoholic
beverage or craft hemp product.
(c) After charges have been filed against a person for a violation of
subsection (a), the prosecuting attorney shall notify the commission of
the charges filed.
SECTION 12. IC 7.1-5-10-15.5 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 15.5. (a) As used in this
ES 478—LS 6068/DI 120 78
section, "furnish" includes barter, deliver, sell, exchange, provide, or
give away.
(b) A person who furnishes an alcoholic beverage or craft hemp
product to a person is not liable in a civil action for damages caused
by the impairment or intoxication of the person who was furnished the
alcoholic beverage unless:
(1) the person furnishing the alcoholic beverage or craft hemp
product had actual knowledge that the person to whom the
alcoholic beverage or craft hemp product was furnished was
visibly intoxicated at the time the alcoholic beverage or craft
hemp product was furnished; and
(2) the intoxication of the person to whom the alcoholic beverage
or craft hemp product was furnished was a proximate cause of
the death, injury, or damage alleged in the complaint.
(c) If a person who is at least twenty-one (21) years of age suffers
injury or death proximately caused by the person's voluntary
intoxication, the:
(1) person;
(2) person's dependents;
(3) person's personal representative; or
(4) person's heirs;
may not assert a claim for damages for personal injury or death against
a person who furnished an alcoholic beverage or craft hemp product
that contributed to the person's intoxication, unless subsections (b)(1)
and (b)(2) apply.
SECTION 13. IC 7.1-7-2-10, AS AMENDED BY P.L.206-2017,
SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2020 (RETROACTIVE)]: Sec. 10. (a) "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) This subsection applies before July 1, 2025. The term does
not include a craft hemp flower product as defined in
IC 35-31.5-2-68.9.
(c) This subsection applies after June 30, 2025. The term does
not include:
(1) a craft hemp flower product as defined in
IC 35-31.5-2-68.9; and
(2) low THC hemp extract as defined in IC 35-48-1-17.5.".
Page 4, delete lines 1 through 3.
Page 4, line 7, delete "FLOWER".
Page 4, line 8, delete "Chapter." and insert "Chapter".
ES 478—LS 6068/DI 120 79
Page 4, line 9, delete "or".
Page 4, line 10, after "manufacturer" insert ", or out-of-state
supplier,".
Page 4, line 26, delete "at retail" and insert "directly to a consumer
for consumption off the permitted premises".
Page 4, line 26, after "valid" insert "retail".
Page 4, between lines 32 and 33, begin a new paragraph and insert:
"(d) A person who is a retail craft hemp permit holder and a
retail alcoholic beverage permit holder may serve craft hemp
beverages in the original container for consumption on the
permitted premises.".
Page 6, line 33, delete "permit or" and insert "permit under this
article or".
Page 6, line 34, delete "or permit" and insert "under this article or
this title, as applicable,".
Page 7, line 19, delete "one (1) year" and insert "two (2) years".
Page 9, line 2, after "hemp" insert "flower".
Page 9, line 7, delete "under" and insert "less than".
Page 9, line 18, after "hemp" insert "flower".
Page 9, line 26, delete "enforcement;" and insert "enforcement
officer;".
Page 9, line 27, after "hemp" insert "flower".
Page 10, line 6, delete "hearing judge" and insert "administrative
law judge".
Page 10, line 10, delete "A hearing judge" and insert "An
administrative law judge".
Page 10, line 23, delete "7.1-3-18.5-11" and insert "IC
7.1-3-18.5-11".
Page 10, line 24, delete "(2)" and insert "(2)".
Page 10, line 24, after "tobacco" insert "to a".
Page 10, line 24, delete "twenty one" and insert "twenty-one".
Page 10, line 29, delete "(35-46-1-11.9)." and insert "(IC
35-46-1-11.9).".
Page 10, line 30, delete "(35-48-4-8.5)." and insert "(IC
35-48-4-8.5).".
Page 10, line 42, delete "or a manufacturer".
Page 11, line 1, after "commission." insert "A craft hemp
distributor permit holder may sell craft hemp to a retail craft
hemp permit holder.
(b) A craft hemp distributor permit does not authorize a person
to sell craft hemp products directly to a consumer.
(c) A craft hemp distributor permit holder must purchase craft
ES 478—LS 6068/DI 120 80
hemp from a craft hemp manufacturing permit holder or from an
out-of-state craft hemp supplier permit holder.".
Page 11, line 2, delete "(b)" and insert "(d)".
Page 11, between lines 4 and 5, begin a new paragraph and insert:
"Sec. 1.5. (a) A person located outside of Indiana may not
distribute craft hemp to a person located within Indiana without
a valid out-of-state craft hemp supplier permit issued by the
commission under subsection (b).
(b) The commission may issue an out-of-state craft hemp
supplier permit based on the factors set forth in section 2 of this
chapter.
(c) An out-of-state craft hemp supplier permit holder may sell
craft hemp directly to a consumer if the consumer is at least
twenty-one (21) years of age and located within Indiana at the time
of the sale and delivery.
(d) A parcel in which craft hemp is mailed to an Indiana
purchaser must be marked as follows: "CONTAINS CRAFT
HEMP. NOT FOR DELIVERY TO A PERSON UNDER THE
AGE OF 21"".
Page 11, line 5, after "permit" insert "under this chapter".
Page 12, line 8, delete "distributer" and insert "distributor".
Page 13, line 3, after "a permit" insert "under this article".
Page 13, line 4, delete "or permit" and insert "under this article or
this title, as applicable,".
Page 13, line 7, delete "which" and insert "that".
Page 13, line 30, delete "one (1) year" and insert "two (2) years".
Page 15, line 20, delete "sell" and insert "distribute".
Page 15, line 28, delete "enforcement;" and insert "enforcement
officer;".
Page 15, line 29, delete "selling" and insert "distributing".
Page 16, line 8, delete "hearing judge" and insert "administrative
law judge".
Page 16, line 12, delete "A hearing judge" and insert "An
administrative law judge".
Page 16, between lines 24 and 25, begin a new paragraph and insert:
"(c) A craft hemp manufacturer permit holder may only sell
craft hemp to a craft hemp distributor permit holder or a craft
hemp retail permit holder issued by the commission. A craft hemp
manufacturer permit holder may not sell a craft hemp product
directly to a consumer without first obtaining a craft hemp retail
permit issued by the commission.".
Page 17, line 26, delete "3" and insert "3.".
ES 478—LS 6068/DI 120 81
Page 18, line 22, delete "or permit" and insert "under this article
or".
Page 18, line 23, delete "or permit" and insert "under this article
or this title, as applicable,".
Page 18, line 26, after "permit" insert "under this article".
Page 18, line 27, delete "which" and insert "that".
Page 19, line 8, delete "one (1) year" and insert "two (2) years".
Page 20, line 15, delete "distribution" and insert "manufacturing".
Page 20, line 18, delete "distribution" and insert "manufacturing".
Page 20, line 31, delete "distribution" and insert "manufacturing".
Page 20, line 34, delete "distribution" and insert "manufacturing".
Page 20, line 40, delete "sell" and insert "manufacture".
Page 21, line 6, delete "enforcement;" and insert "enforcement
officer;".
Page 21, line 7, delete "selling" and insert "manufacturing".
Page 21, line 28, delete "hearing judge" and insert "administrative
law judge".
Page 21, line 32, delete "A hearing judge" and insert "An
administrative law judge".
Page 22, line 8, after "2." insert "(a)".
Page 22, between lines 9 and 10, begin a new paragraph and insert:
"(b) This subsection does not apply to the following holders of
any beer, liquor, or wine retailer's permits issued under IC 7.1:
(1) A racetrack.
(2) A restaurant.
(3) A social club.
(4) A fraternal club.
(5) A resort hotel.
(6) An economic redevelopment site.
(7) A gaming center.
(8) An airport.
(9) A horse track.
(10) The state fairgrounds.
(11) A catering hall.
(12) A historic district.
(13) A professional sports stadium.
(14) A concert venue.".
Page 22, delete lines 10 through 12.
Page 22, line 14, after "1." insert "(a)".
Page 22, between lines 17 and 18, begin a new paragraph and insert:
"(b) If the commission does not issue a denial under subsection
(a) within thirty (30) days, the packaging is deemed approved and
ES 478—LS 6068/DI 120 82
eligible for sale.".
Page 23, line 19, delete "in" and insert "on".
Page 23, line 24, delete "terms" and insert "term".
Page 23, line 39, delete "must be private and".
Page 24, delete lines 5 through 19.
Page 24, line 20, delete "(5)" and insert "(1)".
Page 24, line 21, delete "(6)" and insert "(2)".
Page 24, line 23, delete "suggest" and insert "suggests".
Page 24, line 26, delete "(7)" and insert "(3)".
Page 24, between lines 27 and 28, begin a new paragraph and insert:
"Chapter 8. Criminal Acts
Sec. 1. (a) This section does not apply to a person who holds a
permit to sell, distribute, or manufacture craft hemp product.
(b) A person who knowingly or intentionally:
(1) purchases;
(2) receives;
(3) manufactures;
(4) imports;
(5) transports;
(6) causes to be imported or transports from another state,
territory, or country, into Indiana;
(7) transports;
(8) ships;
(9) barters;
(10) gives away;
(11) exchanges;
(12) furnishes;
(13) handles; or
(14) possesses;
craft hemp for purposes of sale, commits a Class B misdemeanor.
(c) An individual who knowingly or intentionally acquires craft
hemp product from a person that the individual knows does not
hold an appropriate permit under this article to sell, deliver,
furnish, or give craft hemp product commits a Class B
misdemeanor.
Sec. 2. (a) A person who recklessly, knowingly, or intentionally
sells, barters, exchanges, provides, or furnishes:
(1) craft hemp product; or
(2) a product containing THC (tetrahydrocannabinol);
to a minor commits dealing craft hemp to a minor, a Class A
misdemeanor.
(b) An offense described in subsection (a) is a:
ES 478—LS 6068/DI 120 83
(1) Level 6 felony if the person has a prior unrelated
conviction under this section; or
(2) Level 5 felony if the consumption, ingestion, or use of the
craft hemp product or THC is the proximate cause of serious
bodily injury or the death of an individual.
(c) The following defenses are available to a person or permittee
accused of dealing craft hemp to a minor:
(1) The buyer or recipient produced a driver's license that
included the purchaser's or recipient's photograph and
indicated the purchaser or recipient is at least twenty-one (21)
years of age to make the purchase.
(2) The buyer or recipient produced a photographic
identification card issued under IC 9-24-16-1 or a similar card
issued under the laws of another state or the federal
government that indicated the purchaser or recipient was at
least twenty-one (21) years of age to make the purchase.
(3) An ordinary, prudent individual would believe the
purchaser or recipient was not less than forty (40) years of
age based on the purchaser's or recipient's appearance.
(d) It is a defense to a prosecution under this section that a
permittee sold or provided craft hemp product to a minor who
acted in the ordinary course of employment or a business
concerning craft hemp products for the following activities:
(1) Agriculture.
(2) Processing.
(3) Transporting.
(4) Wholesaling.
(5) Retailing.
(e) A person who distributes or sells craft hemp directly to
purchasers through a website must use a reliable online age
verification system or obtain and examine a copy of the
purchaser's government issued identification.
(f) A permittee who violates subsection (a) or (e) is subject to the
following civil penalties:
(1) One thousand dollars ($1,000) for the first violation.
(2) Five thousand dollars ($5,000) for a second violation that
occurs within two (2) years of a first violation and the
suspension of the retailer's permit for up to six (6) months.
(3) Ten thousand dollars ($10,000) for each subsequent
violation that occurs within two (2) years of the preceding
violation, and revocation of the retailer's permit.
(g) A permittee who violates subsection (a) at least three (3)
ES 478—LS 6068/DI 120 84
times in a one (1) year period commits habitual furnishing of craft
hemp to a minor.
(h) A retailer whose permit is suspended under subsection (f)(2)
may reapply for a permit after one (1) year of the suspension.
Sec. 3. (a) A minor who knowingly or intentionally possesses:
(1) craft hemp; or
(2) a product containing THC (tetrahydrocannabinol);
commits possession of craft hemp by a minor, a Class B
misdemeanor.
(b) It is a defense to a prosecution under this section that the
accused minor acted in the ordinary course of employment or a
business concerning craft hemp products for the following
activities:
(1) Agriculture.
(2) Processing.
(3) Transporting.
(4) Wholesaling.
(5) Retailing.".
Page 28, line 12, strike "total".
Page 28, line 13, reset in roman "delta-9-tetrahydrocannabinol
(THC),".
Page 28, line 13, after "(THC)," delete "tetrahydrocannabinol".
Page 28, line 14, delete "(THC),".
Page 28, line 14, strike "including precursors".
Page 28, line 14, delete "of THC,".
Page 29, line 5, strike "total".
Page 29, line 5, reset in roman "delta-9-tetrahydrocannabinol
(THC),".
Page 29, line 6, delete "tetrahydrocannabinol (THC),".
Page 29, line 6, strike "including precursors,".
Page 30, line 9, delete "IC 24-4-24" and insert "IC 24-4-24.9".
Page 30, line 12, delete "24." and insert "24.9.".
Page 31, line 7, delete "including precursors,".
Page 32, line 18, delete "including precursors,".
Page 33, delete lines 3 through 15.
Page 33, line 16, delete "9." and insert "8.".
Page 33, between lines 23 and 24, begin a new paragraph and insert:
"SECTION 24. IC 34-30-2.1-72, AS ADDED BY P.L.105-2022,
SECTION 12, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 72. IC 7.1-5-10-15 (Concerning alcoholic
beverage permittee or permittee's agent refusing to serve alcoholic
beverages or craft hemp product to certain persons).
ES 478—LS 6068/DI 120 85
SECTION 25. IC 34-30-2.1-73, AS ADDED BY P.L.105-2022,
SECTION 12, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 73. IC 7.1-5-10-15.5 (Concerning persons who
furnish an alcoholic beverage or craft hemp product for damages
caused by an impaired or intoxicated person).".
Page 33, line 37, after "68.9." insert "(a)".
Page 33, line 41, after "of" insert "delta-8, delta-9, delta-10, or
hexahydrocannabinol".
Page 33, line 41, delete "including precursors of THC,".
Page 34, line 3, delete "gummy;" and insert "gummy that contains
not more than one hundred (100) milligrams of THC per serving
and not more than three thousand (3,000) milligrams of THC per
package;".
Page 34, line 4, delete "edible;" and insert "edible that contains not
more than one hundred (100) milligrams of THC per
individualized unit and not more than three thousand (3,000)
milligrams of THC per package;".
Page 34, line 5, delete "drink;" and insert "drink that contains not
more than twenty-five (25) milligrams of THC per individualized
unit and not more than six hundred (600) milligrams of THC per
package;".
Page 34, line 6, delete "tincture;" and insert "tincture that contains
not more than one hundred (100) milligrams of THC per serving
and not more than three thousand (3,000) milligrams of THC per
package;".
Page 34, line 7, delete "in a tamper evident container." and insert
"that contains not more than three (3) grams of THC per device.".
Page 34, between lines 8 and 9, begin a new paragraph and insert:
"(b) A variance of up to twenty percent (20%) from the
milligram limits described in subsection (a) is permitted to account
for testing variability and manufacturing tolerances.".
Page 38, between lines 34 and 35, begin a new paragraph and insert:
"SECTION 33. IC 35-46-1-11.7, AS AMENDED BY P.L.56-2023,
SECTION 324, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2025]: Sec. 11.7. (a) A retail establishment in
which tobacco products, electronic cigarettes, and e-liquids, and craft
hemp products account for at least eighty-five percent (85%) of the
retail establishment's gross sales may not allow an individual who is
less than twenty-one (21) years of age to enter the retail establishment.
(b) An individual who is less than twenty-one (21) years of age may
not enter a retail establishment described in subsection (a).
(c) A retail establishment described in subsection (a) must
ES 478—LS 6068/DI 120 86
conspicuously post on all entrances to the retail establishment the
following:
(1) A sign in boldface type that states "NOTICE: It is unlawful for
a person less than 21 years old to enter this store.".
(2) A sign printed in letters and numbers at least one-half (1/2)
inch high that displays a toll free phone number for assistance to
callers in quitting smoking, as determined by the Indiana
department of health.
(d) A person who violates this section commits a Class C infraction.
Notwithstanding IC 34-28-5-4(c), a civil judgment for an infraction
committed under this section must be imposed as follows:
(1) If the person has not been cited for a violation of this section
in the previous one (1) year, a civil penalty of up to four hundred
dollars ($400).
(2) If the person has had one (1) violation in the previous one (1)
year, a civil penalty of up to eight hundred dollars ($800).
(3) If the person has had two (2) violations in the previous one (1)
year, a civil penalty of up to one thousand four hundred dollars
($1,400).
(4) If the person has had three (3) or more violations in the
previous one (1) year, a civil penalty of up to two thousand dollars
($2,000).
A person may not be cited more than once every twenty-four (24)
hours.
(e) Notwithstanding IC 34-28-5-5(c), civil penalties collected under
this section must be deposited in the Richard D. Doyle youth tobacco
education and enforcement fund established under IC 7.1-6-2-6.
(f) A person who violates subsection (a) at least six (6) times in any
one (1) year period commits habitual illegal entrance by a minor, a
Class B infraction.".
Page 40, line 42, strike "total".
Page 40, line 42, reset in roman "delta-9-tetrahydrocannabinol
(THC),".
Page 40, line 42, after "(THC)," delete "tetrahydrocannabinol".
Page 41, line 1, delete "(THC),".
Page 41, line 1, strike "including precursors,".
Page 42, between lines 21 and 22, begin a new paragraph and insert:
"SECTION 45. IC 35-52-7-97.1 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2025]: Sec. 97.1. IC 7.1-8-8-1, IC 7.1-8-8-2,
and IC 7.1-8-8-3 define crimes concerning craft hemp product.".
Page 42, delete lines 22 through 25.
ES 478—LS 6068/DI 120 87
Page 42, line 28, delete "IC 24-4-24-9" and insert "IC 24-4-24.9-8".
Page 42, after line 29, begin a new paragraph and insert:
"SECTION 46. An emergency is declared for this act.".
Renumber all SECTIONS consecutively.
and when so amended that said bill do pass.
(Reference is to SB 478 as reprinted February 14, 2025.)
MORRIS
Committee Vote: yeas 8, nays 3.
ES 478—LS 6068/DI 120