*ES0478.2*
April 3, 2025
ENGROSSED
SENATE BILL No. 478
_____
DIGEST OF SB 478 (Updated April 2, 2025 5:15 pm - DI 107)
Citations Affected: IC 6-7; IC 6-8.1; 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; noncode.
Synopsis: Craft hemp flower and THC products. Establishes certain
regulatory testing and packaging requirements for the distribution and
sale of craft hemp flower products. Creates and modifies certain crimes
concerning craft hemp. craft hemp flower products, and THC. Provides
that a food is not considered adulterated for containing low THC hemp
extract or craft hemp flower. Provides that craft hemp flower product
is not included in the definition of "controlled substance analog",
(Continued next page)
Effective: July 1, 2020 (retroactive); July 1, 2025; January 1, 2026.
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.
April 3, 2025, amended, reported — Do Pass. Referred to Committee on Courts and
Criminal Code pursuant to Rule 126.3.
ES 478—LS 6068/DI 120 Digest Continued
"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. 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. Clarifies the definition of "e-liquid." 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. Provides that onsite
consumption restrictions do not apply to holders of certain alcoholic
beverage retailer permits. Adds certain retail establishments that sell
craft hemp products to the list of retail establishments that must
prohibit minors from entering. Imposes an excise tax, known as the
craft hemp flower product excise tax, on the retail sale of craft hemp
flower product in Indiana. 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 cartridges that contains craft hemp. Provides that the
tax on taxable products does not apply to a taxable product that
contains craft hemp. 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. Provides that work
in progress hemp extract may be sold to a craft hemp manufacturer
permit holder. Changes references of "administrative law judge" to
"hearing judge". Prohibits a craft hemp permit holder from giving free
samples of craft hemp at a farmers' market. Defines terms. Makes
conforming changes. Makes technical corrections.
ES 478—LS 6068/DI 120ES 478—LS 6068/DI 120 April 3, 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, 2020 (RETROACTIVE)]: Sec. 2. As used in this chapter,
4 "consumable material" means any liquid solution or other material used
5 in an open system container that is depleted as the vapor product is
6 used. The term does not include:
7 (1) closed system cartridges (as defined in IC 6-7-2-0.5); and
8 (2) craft hemp (as defined in IC 7.1-8-1-1).
9 SECTION 2. IC 6-7-2-7.5, AS AMENDED BY THE TECHNICAL
10 CORRECTIONS BILL OF THE 2025 GENERAL ASSEMBLY, IS
11 AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2020
12 (RETROACTIVE)]: Sec. 7.5. (a) This section does not apply to a
13 closed system cartridge that contains craft hemp (as defined in
14 IC 7.1-8-1-1).
15 (a) (b) A tax is imposed on the distribution of closed system
16 cartridges in Indiana at the rate of fifteen percent (15%) of the
17 wholesale price of the closed system cartridge. If a closed system
ES 478—LS 6068/DI 120 2
1 cartridge is sold in the same package as a vapor product device, the tax
2 imposed under this subsection shall only apply to the wholesale price
3 of the closed system cartridge if the wholesale cost of the closed system
4 cartridge can be isolated from the vapor product device on the invoice.
5 (b) (c) The distributor of closed system cartridges, including a
6 person that sells closed system cartridges through an Internet web site,
7 a website, is liable for the tax imposed under subsection (a). (b). The
8 tax is imposed at the time the distributor:
9 (1) brings or causes closed system cartridges to be brought into
10 Indiana for distribution;
11 (2) manufactures closed system cartridges in Indiana for
12 distribution; or
13 (3) transports closed system cartridges to retail dealers in Indiana
14 for resale by those retail dealers.
15 (c) (d) A consumer who purchases untaxed closed system cartridges
16 from a distributor or retailer is liable for the tax imposed under
17 subsection (a). (b).
18 SECTION 3. IC 6-7-2-7.7, AS ADDED BY P.L.137-2022,
19 SECTION 70, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
20 JULY 1, 2025]: Sec. 7.7. (a) This section does not apply to a taxable
21 product that contains craft hemp (as defined in IC 7.1-8-1-1).
22 (a) (b) The tax imposed under sections 7(a)(1), 7(b), and 7.5(a)
23 7.5(b) of this chapter shall also be imposed on the sale of taxable
24 products in Indiana by remote sellers, and shall be calculated based on
25 one (1) of the following methods:
26 (1) For remote sellers using an actual cost method, the tax shall
27 be calculated by applying the rate to the actual cost of each
28 individual product.
29 (2) For remote sellers using an actual cost list method, the tax
30 shall be calculated by applying the rate to the cost established for
31 each individual product in the remote seller's actual cost list.
32 (b) (c) The remote seller of taxable products is liable for the tax
33 imposed under section 7(a)(1), 7(b), or 7.5(a) 7.5(b) of this chapter.
34 (c) (d) The tax under this section shall be imposed at the time of
35 purchase by an ultimate consumer.
36 SECTION 4. IC 6-7-5 IS ADDED TO THE INDIANA CODE AS
37 A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
38 JANUARY 1, 2026]:
39 Chapter 5. Craft Hemp Flower Product Excise Tax
40 Sec. 1. As used in this chapter, "craft hemp flower product" has
41 the meaning set forth in IC 35-31.5-2-68.9.
42 Sec. 2. As used in this chapter, "department" means the
ES 478—LS 6068/DI 120 3
1 department of state revenue and includes its employees and agents.
2 Sec. 3. As used in this chapter, "gross retail income" has the
3 meaning set forth in IC 6-2.5-1-5.
4 Sec. 4. As used in this chapter, "person" has the meaning set
5 forth in IC 6-7-1-4.
6 Sec. 5. As used in this chapter, "retail dealer" means a person
7 engaged in the selling of craft hemp flower product to ultimate
8 consumers.
9 Sec. 6. (a) An excise tax, known as the craft hemp flower
10 product tax, is imposed on the retail sale of craft hemp flower
11 product in Indiana.
12 (b) The craft hemp flower product tax equals fifteen percent
13 (15%) of the gross retail income received by the retail dealer for
14 the sale.
15 (c) The person who acquires craft hemp flower product in a
16 retail transaction is liable for the tax on the transaction, and,
17 except as otherwise incorporated in this chapter, shall pay the tax
18 to the retail dealer as a separate added amount to the consideration
19 in the transaction. A retail dealer that either:
20 (1) has a physical presence in Indiana, as described in
21 IC 6-2.5-2-1(c); or
22 (2) meets the threshold in IC 6-2.5-2-1(d);
23 shall collect and remit the tax as an agent for the state.
24 (d) If the tax is not collected by the retail dealer, the consumer
25 is responsible to remit the tax to the department. A retail dealer
26 that is required to collect and remit tax under this chapter is
27 jointly and severally liable for uncollected tax absent proof of
28 exemption or payment by the purchaser.
29 (e) Before the fifteenth day of each month, each retail dealer
30 liable for the collection and remittance of the tax imposed by this
31 chapter shall:
32 (1) file a return with the department that includes all
33 information required by the department, including:
34 (A) the name of the retail dealer;
35 (B) the address of the retail dealer; and
36 (C) the certificate number of the retail dealer's craft hemp
37 flower product retail dealer's certificate; and
38 (2) pay the tax for which it is liable under this chapter for the
39 preceding month.
40 All returns required to be filed and taxes required to be paid under
41 this chapter must be made in an electronic format prescribed by
42 the department.
ES 478—LS 6068/DI 120 4
1 (f) The following apply for purposes of this chapter:
2 (1) Subject to subdivision (2), all of the provisions of IC 6-2.5
3 relating to rights, duties, liabilities, procedures, penalties,
4 definitions, exemptions, and administration apply to the
5 imposition and administration of the tax imposed under this
6 section, except to the extent such provisions are in conflict or
7 inconsistent with the specific provisions of this chapter.
8 (2) Transactions exempt from the state gross retail and use
9 taxes under the following provisions are not exempt from the
10 tax imposed under this chapter:
11 (A) IC 6-2.5-5-5.1.
12 (B) IC 6-2.5-5-6.
13 (C) IC 6-2.5-5-20.
14 (D) IC 6-2.5-5-21.
15 (E) IC 6-2.5-5-22.
16 (g) A marketplace facilitator (as defined in IC 6-2.5-1-21.9) who
17 is considered a retail merchant under IC 6-2.5-4-18 for a
18 transaction to which this chapter applies shall collect and remit
19 craft hemp flower product taxes imposed on the retail transaction.
20 Sec. 7. (a) It is unlawful for any retail dealer to sell craft hemp
21 flower product in Indiana unless the retail dealer has a valid craft
22 hemp flower product retail dealer's certificate issued by the
23 department.
24 (b) The department shall issue certificates to applicants that
25 qualify under this section. A certificate issued under this section is
26 valid for two (2) years unless revoked or suspended by the
27 department and is not transferable. A craft hemp flower product
28 retail dealer's certificate may be revoked or suspended by the
29 department in the same manner, for the same reasons, and is
30 subject to the same procedures as for the revocation or suspension
31 of a retail merchant's certificate under IC 6-2.5-8-7. If a retail
32 dealer's retail merchant's certificate under IC 6-2.5-8 expires or is
33 revoked by the department, a craft hemp flower product retail
34 dealer's certificate issued to the retail dealer under this subsection
35 shall automatically be revoked without notice otherwise required
36 under IC 6-2.5-8.
37 (c) An applicant for a certificate under this section must submit
38 proof to the department of the appointment of an agent for service
39 of process in Indiana if the applicant is:
40 (1) an individual whose principal place of residence is outside
41 Indiana; or
42 (2) a person, other than an individual, that has its principal
ES 478—LS 6068/DI 120 5
1 place of business outside Indiana.
2 (d) To obtain or renew a certificate under this section, a person
3 must:
4 (1) submit, for each location where it intends to distribute
5 craft hemp flower product, an application that includes all
6 information required by the department;
7 (2) pay a fee of twenty-five dollars ($25) at the time of
8 application; and
9 (3) at the time of application, post a bond, issued by a surety
10 company approved by the department, in an amount not less
11 than one thousand dollars ($1,000) and conditioned on the
12 applicant's compliance with this chapter.
13 (e) If business is transacted at two (2) or more places by one (1)
14 retail dealer, a separate certificate must be obtained for each place
15 of business.
16 (f) Each certificate must be numbered, show the name and
17 address of the retail dealer, and be posted in a conspicuous place
18 at the place of business for which it is issued.
19 (g) If the department determines that a bond provided by a
20 certificate is inadequate, the department may require a new bond
21 in the amount necessary to fully protect the state.
22 Sec. 8. A retail dealer that sells craft hemp flower product in
23 Indiana without having obtained a craft hemp flower product
24 retail dealer's certificate, or after the retail dealer's certificate has
25 been revoked or suspended by the department, commits a Class A
26 misdemeanor.
27 Sec. 9. An individual who:
28 (1) is an individual retail dealer or an employee, an officer, or
29 a member of a corporate or partnership retail dealer; and
30 (2) has a duty to remit craft hemp flower product taxes to the
31 department;
32 holds those taxes in trust for the state and is personally liable for
33 the payment of those taxes, plus any penalties and interest
34 attributable to those taxes, to the state. If the individual knowingly
35 fails to collect or remit those taxes to the state, the individual
36 commits a Level 6 felony.
37 Sec. 10. All revenue from the tax imposed by this chapter must
38 be deposited in the state general fund.
39 Sec. 11. The department may adopt rules under IC 4-22-2
40 necessary to enforce this chapter.
41 SECTION 5. IC 6-8.1-1-1, AS AMENDED BY P.L.1-2023,
42 SECTION 19, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
ES 478—LS 6068/DI 120 6
1 JANUARY 1, 2026]: Sec. 1. "Listed taxes" or "taxes" includes only the
2 pari-mutuel taxes (IC 4-31-9-3 through IC 4-31-9-5); the supplemental
3 wagering tax (IC 4-33-12); the riverboat wagering tax (IC 4-33-13); the
4 slot machine wagering tax (IC 4-35-8); the type II gambling game
5 excise tax (IC 4-36-9); the gross income tax (IC 6-2.1) (repealed); the
6 utility receipts and utility services use taxes (IC 6-2.3) (repealed); the
7 state gross retail and use taxes (IC 6-2.5); the adjusted gross income tax
8 (IC 6-3); the pass through entity tax (IC 6-3-2.1); the supplemental net
9 income tax (IC 6-3-8) (repealed); the county adjusted gross income tax
10 (IC 6-3.5-1.1) (repealed); the county option income tax (IC 6-3.5-6)
11 (repealed); the county economic development income tax (IC 6-3.5-7)
12 (repealed); the local income tax (IC 6-3.6); the auto rental excise tax
13 (IC 6-6-9); the financial institutions tax (IC 6-5.5); the gasoline tax
14 (IC 6-6-1.1); the special fuel tax (IC 6-6-2.5); the motor carrier fuel tax
15 (IC 6-6-4.1); a motor fuel tax collected under a reciprocal agreement
16 under IC 6-8.1-3; the vehicle excise tax (IC 6-6-5); the aviation fuel
17 excise tax (IC 6-6-13); the commercial vehicle excise tax (IC 6-6-5.5);
18 the excise tax imposed on recreational vehicles and truck campers
19 (IC 6-6-5.1); the hazardous waste disposal tax (IC 6-6-6.6) (repealed);
20 the heavy equipment rental excise tax (IC 6-6-15); the vehicle sharing
21 excise tax (IC 6-6-16); the cigarette tax (IC 6-7-1); the closed system
22 cartridge tax (IC 6-7-2-7.5); the electronic cigarette tax (IC 6-7-4); the
23 craft hemp flower product excise tax (IC 6-7-5); the beer excise tax
24 (IC 7.1-4-2); the liquor excise tax (IC 7.1-4-3); the wine excise tax
25 (IC 7.1-4-4); the hard cider excise tax (IC 7.1-4-4.5); the petroleum
26 severance tax (IC 6-8-1); the various innkeeper's taxes (IC 6-9); the
27 various food and beverage taxes (IC 6-9); the county admissions tax
28 (IC 6-9-13 and IC 6-9-28); the oil inspection fee (IC 16-44-2); the
29 penalties assessed for oversize vehicles (IC 9-20-3 and IC 9-20-18); the
30 fees and penalties assessed for overweight vehicles (IC 9-20-4 and
31 IC 9-20-18); and any other tax or fee that the department is required to
32 collect or administer.
33 SECTION 6. IC 7.1-2-3-33, AS AMENDED BY P.L.49-2020,
34 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
35 JULY 1, 2025]: Sec. 33. The commission is authorized to:
36 (1) investigate a violation of; and
37 (2) enforce a penalty for a violation of;
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 IC 35-46-1-11.8,
40 or IC 7.1-8.
41 SECTION 7. IC 7.1-3-18.5-5, AS AMENDED BY P.L.49-2020,
42 SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
ES 478—LS 6068/DI 120 7
1 JULY 1, 2025]: Sec. 5. (a) Subject to subsection (b), the commission
2 may suspend the certificate of a person who fails to pay a civil penalty
3 imposed for violating IC 35-46-1-10, IC 35-46-1-10.2, IC 35-46-1-11,
4 IC 35-46-1-11.2, IC 35-46-1-11.4, IC 35-46-1-11.5, IC 35-46-1-11.7,
5 or IC 35-46-1-11.8.
6 (b) Before enforcing the imposition of a civil penalty or suspending
7 or revoking a certificate under this chapter, the commission shall
8 provide written notice of the alleged violation to the certificate holder
9 and conduct a hearing. The commission shall provide written notice of
10 the civil penalty or suspension or revocation of a certificate to the
11 certificate holder.
12 (c) Subject to subsection (b), the commission shall revoke the
13 certificate of a person upon a finding by a preponderance of the
14 evidence that the person:
15 (1) has violated IC 35-45-5-3, IC 35-45-5-3.5, IC 35-45-5-4,
16 IC 35-46-1-11, IC 35-46-1-11.2, IC 35-46-1-11.4, or
17 IC 35-46-1-11.8;
18 (2) has committed habitual illegal sale of tobacco sales as
19 established under IC 35-46-1-10.2(j); or
20 (3) has committed habitual illegal entrance by a minor as
21 established under IC 35-46-1-11.7(f).
22 SECTION 8. IC 7.1-5-7-18 IS ADDED TO THE INDIANA CODE
23 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
24 1, 2025]: Sec. 18. (a) A law enforcement officer vested with full
25 police powers and duties may engage an individual who is:
26 (1) at least sixteen (16) years of age; and
27 (2) less than twenty-one (21) years of age;
28 to receive or purchase craft hemp, a product that contains low
29 THC hemp extract, or a product that contains craft hemp, as part
30 of an enforcement under this article.
31 (b) The initial or contemporaneous receipt or purchase of a
32 craft hemp product, a product that contains low THC hemp
33 extract, or a product that contains craft hemp may only:
34 (1) occur under the direction of a law enforcement officer
35 vested with full police powers and duties; and
36 (2) be part of an enforcement action.
37 SECTION 9. IC 7.1-5-10-15, AS AMENDED BY P.L.159-2014,
38 SECTION 80, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
39 JULY 1, 2025]: Sec. 15. (a) A person who, knowing that another
40 person is intoxicated, sells, barters, delivers, or gives away an alcoholic
41 beverage or a product containing THC (tetrahydrocannabinol) to
42 the intoxicated person commits a Class B misdemeanor.
ES 478—LS 6068/DI 120 8
1 (b) In any civil proceeding in which damages are sought from a
2 permittee or a permittee's agent for the refusal to serve a person an
3 alcoholic beverage or a product containing THC
4 (tetrahydrocannabinol), it is a complete defense if the permittee or
5 agent reasonably believed that the person was intoxicated or was
6 otherwise not entitled to be served an alcoholic beverage or a product
7 containing THC (tetrahydrocannabinol).
8 (c) After charges have been filed against a person for a violation of
9 subsection (a), the prosecuting attorney shall notify the commission of
10 the charges filed.
11 SECTION 10. IC 7.1-5-10-15.5 IS AMENDED TO READ AS
12 FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 15.5. (a) As used in this
13 section, "furnish" includes barter, deliver, sell, exchange, provide, or
14 give away.
15 (b) A person who furnishes an alcoholic beverage or a product
16 containing THC (tetrahydrocannabinol) to a person is not liable in
17 a civil action for damages caused by the impairment or intoxication of
18 the person who was furnished the alcoholic beverage unless:
19 (1) the person furnishing the alcoholic beverage or product
20 containing THC (tetrahydrocannabinol) had actual knowledge
21 that the person to whom the alcoholic beverage or product
22 containing THC (tetrahydrocannabinol) was furnished was
23 visibly intoxicated at the time the alcoholic beverage or product
24 containing tetrahydrocannabinol (THC) was furnished; and
25 (2) the intoxication of the person to whom the alcoholic beverage
26 or product containing THC (tetrahydrocannabinol) was
27 furnished was a proximate cause of the death, injury, or damage
28 alleged in the complaint.
29 (c) If a person who is at least twenty-one (21) years of age suffers
30 injury or death proximately caused by the person's voluntary
31 intoxication, the:
32 (1) person;
33 (2) person's dependents;
34 (3) person's personal representative; or
35 (4) person's heirs;
36 may not assert a claim for damages for personal injury or death against
37 a person who furnished an alcoholic beverage or a product containing
38 THC (tetrahydrocannabinol) that contributed to the person's
39 intoxication, unless subsections (b)(1) and (b)(2) apply.
40 SECTION 11. IC 7.1-7-2-10, AS AMENDED BY P.L.206-2017,
41 SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
42 JULY 1, 2020 (RETROACTIVE)]: Sec. 10. (a) "E-liquid" means a
ES 478—LS 6068/DI 120 9
1 substance that:
2 (1) may or may not contain nicotine; and
3 (2) is intended to be vaporized and inhaled using a vapor product.
4 (b) This subsection applies before July 1, 2025. The term does
5 not include a craft hemp flower product as defined in
6 IC 35-31.5-2-68.9.
7 (c) This subsection applies after June 30, 2025. The term does
8 not include:
9 (1) a craft hemp flower product as defined in
10 IC 35-31.5-2-68.9; and
11 (2) low THC hemp extract as defined in IC 35-48-1-17.5.
12 SECTION 12. IC 7.1-8 IS ADDED TO THE INDIANA CODE AS
13 A NEW ARTICLE TO READ AS FOLLOWS [EFFECTIVE JULY 1,
14 2025]:
15 ARTICLE 8. CRAFT HEMP
16 Chapter 0.5. Application
17 Sec. 1. Notwithstanding any other law, a retailer, distributor,
18 manufacturer, or out-of-state supplier, who was in operation
19 before July 1, 2025, may continue to operate without a permit
20 issued under this article until December 31, 2025, if the retailer,
21 distributor, or manufacturer applies for a permit to sell, distribute,
22 or manufacture craft hemp by December 31, 2025.
23 Chapter 1. Definitions
24 Sec. 1. As used in this article, "craft hemp" means craft hemp
25 flower product, craft hemp flower, or low THC hemp extract.
26 Sec. 2. As used in this article, "craft hemp flower" has the
27 meaning set forth in IC 35-31.5-2-68.8.
28 Sec. 3. As used in this article, "craft hemp flower product" has
29 the meaning set forth in IC 35-31.5-2-68.9.
30 Sec. 4. As used in this article, "low THC hemp extract" has the
31 meaning set forth in IC 35-48-1-17.5.
32 Chapter 2. Craft Hemp Retail Permits
33 Sec. 1. (a) A person may not sell or otherwise distribute in
34 exchange for consideration craft hemp directly to a consumer for
35 consumption off the permitted premises without a valid retail craft
36 hemp permit issued by the commission.
37 (b) A permit may be issued only to a person who owns or
38 operates premises consisting of a permanent building or structure
39 where the craft hemp is sold or distributed.
40 (c) A retail permit holder may only purchase craft hemp from
41 a manufacturer or distributor that holds the appropriate permits.
42 (d) A person who is a retail craft hemp permit holder and a
ES 478—LS 6068/DI 120 10
1 retail alcoholic beverage permit holder may serve craft hemp
2 beverages in the original container for consumption on the
3 permitted premises.
4 Sec. 2. (a) A person who desires a permit must provide the
5 following to the commission:
6 (1) The applicant's name and mailing address and the address
7 of the premises for which the permit is being issued.
8 (2) A fee of one thousand dollars ($1,000) for each retail
9 location.
10 (3) The name under which the applicant transacts or intends
11 to transact business.
12 (4) The address of the applicant's principal place of business
13 or headquarters, if any.
14 (5) The statement required under section 4 of this chapter.
15 (6) If the applicant is applying for a new permit under section
16 6 of this chapter, a copy of each of the following:
17 (A) If the new ownership of the business is a business
18 entity, the articles of incorporation, articles of
19 organization, or any other formation documents of the
20 business entity.
21 (B) If the new ownership of the business is an individual,
22 either:
23 (i) the sales or purchase agreement; or
24 (ii) an affidavit signed by the applicant concerning the
25 sale or purchase, on a form prescribed by the
26 commission, that includes the name and address of the
27 seller and purchaser.
28 (C) The permit held by the previous ownership of the
29 business.
30 (b) A separate permit is required for each location where the
31 craft hemp products or craft hemp flower are sold or distributed.
32 A retail establishment may not hold more than one (1) active craft
33 hemp retail permit for a retail location at any time.
34 (c) A permit holder shall conspicuously display the holder's
35 permit on the holder's premises where the craft hemp is sold or
36 distributed.
37 (d) Any intentional misstatement or suppression of a material
38 fact in an application filed under this section constitutes grounds
39 for denial of the permit.
40 (e) A permit may be issued only to a person who meets the
41 following requirements:
42 (1) If the person is an individual, the person must be at least
ES 478—LS 6068/DI 120 11
1 twenty-one (21) years of age.
2 (2) The person must be authorized to do business in Indiana.
3 (3) The person has not had an interest in a permit revoked by
4 the commission for that business location within the preceding
5 one (1) year.
6 (f) The fees collected under this section shall be deposited in the
7 enforcement and administration fund under IC 7.1-4-10.
8 Sec. 3. (a) Subject to available resources, the commission shall
9 not issue a craft hemp retail permit, except as otherwise authorized
10 in this title and subject to the other restrictions contained in this
11 title, to the following persons:
12 (1) A person who does not have lawful status (as defined in
13 IC 9-13-2-92.3).
14 (2) A person who has been convicted within five (5) years
15 before the date of application of:
16 (A) a federal crime having a sentence of at least one (1)
17 year;
18 (B) a Level 1, Level 2, Level 3, Level 4, or Level 5 felony;
19 or
20 (C) a crime in a state other than Indiana having a penalty
21 equal to the penalty for an Indiana Level 1, Level 2, Level
22 3, Level 4, or Level 5 felony.
23 However, this subdivision does not apply to a conviction that
24 has been expunged under IC 35-38-9.
25 (3) A person who does not meet at least one (1) of the
26 following descriptions:
27 (A) The person owns the premises to which the permit will
28 be applicable.
29 (B) The person has a valid lease on the premises:
30 (i) at the time of the application for a permit; and
31 (ii) for the duration of the period in which the person
32 sells or distributes in the manner described in section 1
33 of this chapter.
34 (C) The person has a franchise agreement with a
35 franchisor:
36 (i) that owns the premises to which the permit will be
37 applicable; or
38 (ii) that has a bona fide lease on the premises for the full
39 period for which the permit is to be issued.
40 (4) A person whose place of business is conducted by a
41 manager or agent, unless the manager or agent possesses the
42 same qualifications required for the issuance of a craft hemp
ES 478—LS 6068/DI 120 12
1 retail permit to the person.
2 (5) A minor.
3 (6) A person non compos mentis.
4 (7) A person who has held a permit under this article or
5 permit under this title and who has had that permit under this
6 article or this title, as applicable, revoked within one (1) year
7 prior to the date of application for a craft hemp retail permit.
8 (8) A person who has made an application for a permit or
9 permit of any type under this title which has been denied less
10 than one (1) year prior to the person's application for a craft
11 hemp retail permit unless the first application was denied by
12 reason of a procedural or technical defect.
13 (b) Subsection (a)(5) does not prevent a minor from being a
14 stockholder in a corporation.
15 Sec. 4. An application for a craft hemp permit must contain the
16 express statement of the applicant that the applicant consents for
17 the duration of the permit term (if the commission issues the
18 permit to the applicant) to the entrance, inspection, and search by
19 an enforcement officer, without a warrant or other process, of the
20 applicant's retail premises to determine whether the applicant is
21 complying with the provisions of this title. The consent required by
22 this section is renewed and continued by the retention of a permit
23 or the permit's use by the applicant or the applicant's agents.
24 Sec. 5. (a) A permit issued by the commission under this chapter
25 must contain the following information:
26 (1) The permit number.
27 (2) The permit holder's name.
28 (3) The permanent location of the business for which the
29 permit is issued.
30 (4) The expiration date of the permit.
31 (b) A permit is:
32 (1) valid for two (2) years after the date of issuance, unless the
33 commission suspends the permit; and
34 (2) nontransferable.
35 (c) A permit may be renewed. The fee for renewing a permit is
36 one thousand dollars ($1,000) for each retail location.
37 Sec. 6. If the majority of the ownership of a business that is a
38 permit holder is sold or transferred:
39 (1) the new ownership of the business must apply for a new
40 permit under section 2 of this chapter; and
41 (2) the permit and the permit number held by the previous
42 ownership of the business are void ninety (90) days after the
ES 478—LS 6068/DI 120 13
1 date of the sale or transfer of the ownership of the business.
2 Sec. 7. The commission may adopt rules under IC 4-22-2 to
3 establish procedures for the issuance, renewal, and reinstatement
4 of a permit.
5 Sec. 8. (a) Subject to subsection (b), the commission may
6 suspend the permit of a person who fails to pay a civil penalty
7 imposed by the commission.
8 (b) Before enforcing the imposition of a civil penalty or
9 suspending or revoking a permit under this chapter, the
10 commission shall provide written notice of the alleged violation to
11 the permit holder and conduct a hearing. The commission shall
12 provide written notice of the civil penalty or suspension or
13 revocation of a permit to the permit holder.
14 (c) Subject to subsection (b), the commission shall revoke the
15 permit of a person upon a finding by a preponderance of the
16 evidence that the person:
17 (1) has violated IC 7.1-8-5-2 or IC 7.1-8-8-2;
18 (2) has committed habitual illegal sale of craft hemp as
19 established under IC 7.1-8-8-2(g); or
20 (3) has committed habitual illegal entrance by a minor as
21 established under IC 35-46-1-11.7(f).
22 Sec. 9. (a) If a permit has:
23 (1) expired; or
24 (2) been suspended;
25 the commission may not reinstate or renew the permit until all civil
26 penalties imposed against the permit holder for violating
27 IC 7.1-8-5-2, IC 7.1-8-8-2, or IC 35-46-1-11.7 have been paid.
28 (b) The failure to pay a civil penalty described in subsection (a)
29 is a Class B infraction.
30 (c) If a permit has been revoked, the commission may not
31 reinstate or renew the permit for at least one hundred eighty (180)
32 days after the date of revocation. The commission may reinstate or
33 renew the permit only upon a reasonable showing by the applicant
34 that the applicant shall:
35 (1) exercise due diligence in the sale of craft hemp on the
36 applicant's premises where the craft hemp is sold or
37 distributed; and
38 (2) properly supervise and train the applicant's employees or
39 agents in the handling and sale of craft hemp.
40 If a permit is reinstated or renewed, the applicant of the permit
41 shall pay an application fee of one thousand dollars ($1,000).
42 Sec. 10. The commission may mitigate civil penalties imposed
ES 478—LS 6068/DI 120 14
1 against a permit holder for violating IC 7.1-8-5-2, IC 7.1-8-8-2,
2 IC 35-46-1-11.7, or any of the provisions of this chapter if a permit
3 holder provides a training program for the permit holder's
4 employees that includes at least the following topics:
5 (1) Laws governing the sale of craft hemp flower products and
6 craft hemp flower.
7 (2) Methods of recognizing and handling customers who are
8 less than twenty-one (21) years of age.
9 (3) Procedures for proper examination of identification cards
10 to verify that customers are less than twenty-one (21) years of
11 age.
12 Sec. 11. A permit holder shall exercise due diligence in the
13 supervision and training of the permit holder's employees or agents
14 in the handling and sale of craft hemp products and craft hemp
15 flower on the holder's retail premises.
16 Sec. 12. (a) An employee of a permit holder must hold a valid:
17 (1) driver's license issued by the state of Indiana or another
18 state; or
19 (2) identification card issued by the state of Indiana, another
20 state, or the United States;
21 to sell craft hemp flower products.
22 (b) An employee must have the employee's driver's license or
23 identification card or a copy of the employee's driver's license or
24 identification card:
25 (1) either:
26 (A) in the employee's possession; or
27 (B) on file with the employee's employer; and
28 (2) upon request, readily available to show to an excise officer
29 or law enforcement officer;
30 when selling craft hemp flower products.
31 (c) If an employee holds a valid license or identification card as
32 described in subsection (a) but is unable to show the license,
33 identification card, or a copy to an excise officer under subsection
34 (b) because:
35 (1) the employee has left the license, identification card, or
36 copy in another location; or
37 (2) the license, identification card, or copy has otherwise been
38 lost or mislaid;
39 the employee may, within five (5) days of the employee's inability
40 to show the license, identification card, or copy to the excise officer,
41 produce to the excise officer or to the office of the commission
42 satisfactory evidence of a license or identification card issued to the
ES 478—LS 6068/DI 120 15
1 individual that was valid at the time the individual was unable to
2 show the license, identification card, or copy.
3 (d) If an employee who is unable to show a license, identification
4 card, or copy to an excise officer fails to produce satisfactory
5 evidence within five (5) days in the manner described in subsection
6 (c), the commission may impose a civil penalty on the permit
7 holder.
8 Sec. 13. (a) If a permit holder fails to attend or participate in a
9 hearing without good cause, the hearing judge may recommend to
10 the commission that the commission suspend or revoke the permit
11 holder's permit or impose a fine on the permit holder of up to one
12 thousand dollars ($1,000).
13 (b) A hearing judge may grant a continuance of a hearing upon
14 written motion showing good cause for the continuance.
15 Sec. 14. If a permit holder sells or distributes craft hemp at a
16 location:
17 (1) determined to be a public nuisance; or
18 (2) at which conduct or acts that are crimes or infractions
19 under IC 35 occur;
20 the commission may impose sanctions against the permit holder.
21 Sec. 15. This section applies to a person holding a tobacco sales
22 certificate. A person holding a tobacco sales certificate may not be
23 issued a craft hemp retail permit if the person has received a
24 violation within the previous three (3) years for any of the
25 following:
26 (1) Violating IC 7.1-3-18.5-11 (public nuisance).
27 (2) Habitual illegal sale of tobacco to a person less than
28 twenty-one (21) years of age (IC 35-46-1-10.2).
29 (3) Allowing a minor to enter a licensed premise
30 (IC 35-46-1-11.7).
31 (4) Selling e-liquid containing vitamin E acetate
32 (IC 35-46-1-11.9).
33 (5) Dealing in paraphernalia (IC 35-48-4-8.5).
34 Sec. 16. (a) A retail location may not sell craft hemp flower
35 products if the retail location is within one thousand (1,000) feet of
36 a private school, public school, or charter school that includes any
37 grade from kindergarten through grade 12.
38 (b) If a retailer provides the commission with documentation
39 that establishes that craft hemp flower products were offered for
40 sale at a retail location before January 1, 2025, the retail location
41 may sell craft hemp flower products even if it is within one
42 thousand (1,000) feet of a school.
ES 478—LS 6068/DI 120 16
1 Sec. 17. A permit holder may not give free samples of craft
2 hemp at a farmers' market.
3 Chapter 3. Craft Hemp Distributor Permits
4 Sec. 1. (a) A person may not distribute craft hemp to a retailer
5 without a valid craft hemp distributor permit issued by the
6 commission. A craft hemp distributor permit holder may sell craft
7 hemp to a retail craft hemp permit holder.
8 (b) A craft hemp distributor permit does not authorize a person
9 to sell craft hemp products directly to a consumer.
10 (c) A craft hemp distributor permit holder must purchase craft
11 hemp from a craft hemp manufacturing permit holder or from an
12 out-of-state craft hemp supplier permit holder.
13 (d) A permit may be issued only to a person who owns or
14 operates premises consisting of a permanent building or structure
15 from which the craft hemp is distributed.
16 Sec. 1.5. (a) A person located outside of Indiana may not
17 distribute craft hemp to a person located within Indiana without
18 a valid out-of-state craft hemp supplier permit issued by the
19 commission under subsection (b).
20 (b) The commission may issue an out-of-state craft hemp
21 supplier permit based on the factors set forth in section 2 of this
22 chapter.
23 (c) An out-of-state craft hemp supplier permit holder may sell
24 craft hemp directly to a consumer if the consumer is at least
25 twenty-one (21) years of age and located within Indiana at the time
26 of the sale and delivery.
27 (d) A parcel in which craft hemp is mailed to an Indiana
28 purchaser must be marked as follows: "CONTAINS CRAFT
29 HEMP. NOT FOR DELIVERY TO A PERSON UNDER THE
30 AGE OF 21"
31 Sec. 2. (a) A person who desires a permit under this chapter
32 must provide the following to the commission:
33 (1) The applicant's name and mailing address and the address
34 of the premises for which the permit is being issued.
35 (2) A fee of five thousand dollars ($5,000).
36 (3) The name under which the applicant transacts or intends
37 to transact business.
38 (4) The address of the applicant's principal place of business
39 or headquarters, if any.
40 (5) The statement required under section 4 of this chapter.
41 (6) If the applicant is applying for a new permit under section
42 6 of this chapter, a copy of each of the following:
ES 478—LS 6068/DI 120 17
1 (A) If the new ownership of the business is a business
2 entity, the articles of incorporation, articles of
3 organization, or any other formation documents of the
4 business entity.
5 (B) If the new ownership of the business is an individual,
6 either:
7 (i) the sales or purchase agreement; or
8 (ii) an affidavit signed by the applicant concerning the
9 sale or purchase, on a form prescribed by the
10 commission, that includes the name and address of the
11 seller and purchaser.
12 (C) The permit held by the previous ownership of the
13 business.
14 (b) A separate permit is required for each location from which
15 the craft hemp is distributed.
16 (c) A permit holder shall conspicuously display the holder's
17 permit on the holder's premises where the craft hemp is
18 distributed, and in any vehicle used for the transportation of craft
19 hemp.
20 (d) Any intentional misstatement or suppression of a material
21 fact in an application filed under this section constitutes grounds
22 for denial of the permit.
23 (e) A permit may be issued only to a person who meets the
24 following requirements:
25 (1) If the person is an individual, the person must be at least
26 twenty-one (21) years of age.
27 (2) The person must be authorized to do business in Indiana.
28 (3) The person has not had an interest in a permit revoked by
29 the commission for that business location within the preceding
30 one (1) year.
31 (f) The fees collected under this section shall be deposited in the
32 enforcement and administration fund under IC 7.1-4-10.
33 Sec. 3. (a) Subject to available resources, the commission shall
34 not issue a craft hemp distributor permit, except as otherwise
35 authorized in this title and subject to the other restrictions
36 contained in this title, to the following persons:
37 (1) A person who does not have lawful status (as defined in
38 IC 9-13-2-92.3).
39 (2) A person who has been convicted within five (5) years
40 before the date of application of:
41 (A) a federal crime having a sentence of at least one (1)
42 year;
ES 478—LS 6068/DI 120 18
1 (B) a Level 1, Level 2, Level 3, Level 4, or Level 5 felony;
2 or
3 (C) a crime in a state other than Indiana having a penalty
4 equal to the penalty for an Indiana Level 1, Level 2, Level
5 3, Level 4, or Level 5 felony.
6 However, this subdivision does not apply to a conviction that
7 has been expunged under IC 35-38-9.
8 (3) A person who does not meet at least one (1) of the
9 following descriptions:
10 (A) The person owns the premises to which the permit will
11 be applicable.
12 (B) The person has a valid lease on the premises:
13 (i) at the time of the application for a permit; and
14 (ii) for the duration of the period in which the person
15 sells or distributes in the manner described in section 1
16 of this chapter.
17 (C) The person has a franchise agreement with a
18 franchisor:
19 (i) that owns the premises to which the permit will be
20 applicable; or
21 (ii) that has a bona fide lease on the premises for the full
22 period for which the permit is to be issued.
23 (4) A person whose place of business is conducted by a
24 manager or agent, unless the manager or agent possesses the
25 same qualifications required for the issuance of a craft hemp
26 distributor permit to the person.
27 (5) A minor.
28 (6) A person non compos mentis.
29 (7) A person who has held a permit under this article or
30 permit under this title and who has had that permit under this
31 article or this title, as applicable, revoked within one (1) year
32 prior to the date of application for a craft hemp permit.
33 (8) A person who has made an application for a permit or
34 permit of any type under this title that has been denied less
35 than one (1) year prior to the person's application for a craft
36 hemp distributor permit unless the first application was
37 denied by reason of a procedural or technical defect.
38 (b) Subsection (a)(5) does not prevent a minor from being a
39 stockholder in a corporation.
40 Sec. 4. An application for a craft hemp permit must contain the
41 express statement of the applicant that the applicant consents for
42 the duration of the permit term (if the commission issues the
ES 478—LS 6068/DI 120 19
1 permit to the applicant) to the entrance, inspection, and search by
2 an enforcement officer, without a warrant or other process, of the
3 applicant's premises to determine whether the applicant is
4 complying with the provisions of this title. The consent required by
5 this section is renewed and continued by the retention of a permit
6 or the permit's use by the applicant or the applicant's agents.
7 Sec. 5. (a) A permit issued by the commission under this chapter
8 must contain the following information:
9 (1) The permit number.
10 (2) The permit holder's name.
11 (3) The permanent location of the business for which the
12 permit is issued.
13 (4) The expiration date of the permit.
14 (b) A permit is:
15 (1) valid for two (2) years after the date of issuance, unless the
16 commission suspends the permit; and
17 (2) nontransferable.
18 (c) A permit may be renewed. The fee for renewing a permit is
19 five thousand dollars ($5,000).
20 Sec. 6. If the majority of the ownership of a business that is a
21 permit holder is sold or transferred:
22 (1) the new ownership of the business must apply for a new
23 permit under section 2 of this chapter; and
24 (2) the permit and the permit number held by the previous
25 ownership of the business are void ninety (90) days after the
26 date of the sale or transfer of the ownership of the business.
27 Sec. 7. The commission may adopt rules under IC 4-22-2 to
28 establish procedures for the issuance, renewal, and reinstatement
29 of a permit.
30 Sec. 8. (a) Subject to subsection (b), the commission may
31 suspend the permit of a person who fails to pay a civil penalty
32 imposed by the commission.
33 (b) Before enforcing the imposition of a civil penalty or
34 suspending or revoking a permit under this chapter, the
35 commission shall provide written notice of the alleged violation to
36 the permit holder and conduct a hearing. The commission shall
37 provide written notice of the civil penalty or suspension or
38 revocation of a permit to the permit holder.
39 (c) Subject to subsection (b), the commission shall revoke the
40 permit of a person upon a finding by a preponderance of the
41 evidence that the person:
42 (1) has violated IC 7.1-8-5-2 or IC 7.1-8-8-2;
ES 478—LS 6068/DI 120 20
1 (2) has committed habitual illegal sale of craft hemp as
2 established under IC 7.1-8-8-2(g); or
3 (3) has committed habitual illegal entrance by a minor as
4 established under IC 35-46-1-11.7(f).
5 Sec. 9. (a) If a permit has:
6 (1) expired; or
7 (2) been suspended;
8 the commission may not reinstate or renew the permit until all civil
9 penalties imposed against the permit holder for violating
10 IC 7.1-8-5-2, IC 7.1-8-8-2, or IC 35-46-1-11.7 have been paid.
11 (b) The failure to pay a civil penalty described in subsection (a)
12 is a Class B infraction.
13 (c) If a permit has been revoked, the commission may not
14 reinstate or renew the permit for at least one hundred eighty (180)
15 days after the date of revocation. The commission may reinstate or
16 renew the permit only upon a reasonable showing by the applicant
17 that the applicant shall:
18 (1) exercise due diligence in the distribution of craft hemp;
19 and
20 (2) properly supervise and train the applicant's employees or
21 agents in the handling and distribution of craft hemp.
22 If a permit is reinstated or renewed, the applicant of the permit
23 shall pay an application fee of one thousand dollars ($1,000).
24 Sec. 10. The commission may mitigate civil penalties imposed
25 against a permit holder for violating IC 7.1-8-5-2, IC 7.1-8-8-2,
26 IC 35-46-1-11.7, or any of the provisions of this chapter if a permit
27 holder provides a training program for the permit holder's
28 employees that includes training in laws governing the distribution
29 of craft hemp.
30 Sec. 11. A permit holder shall exercise due diligence in the
31 supervision and training of the permit holder's employees or agents
32 in the handling and distribution of craft hemp.
33 Sec. 12. (a) An employee of a permit holder must hold a valid:
34 (1) driver's license issued by the state of Indiana or another
35 state; or
36 (2) identification card issued by the state of Indiana, another
37 state, or the United States;
38 to distribute craft hemp.
39 (b) An employee must have the employee's driver's license or
40 identification card or a copy of the employee's driver's license or
41 identification card:
42 (1) either:
ES 478—LS 6068/DI 120 21
1 (A) in the employee's possession; or
2 (B) on file with the employee's employer; and
3 (2) upon request, readily available to show to an excise officer
4 or law enforcement officer;
5 when distributing craft hemp.
6 (c) If an employee holds a valid license or identification card as
7 described in subsection (a) but is unable to show the license,
8 identification card, or a copy to an excise officer under subsection
9 (b) because:
10 (1) the employee has left the license, identification card, or
11 copy in another location; or
12 (2) the license, identification card, or copy has otherwise been
13 lost or mislaid;
14 the employee may, within five (5) days of the employee's inability
15 to show the license, identification card, or copy to the excise officer,
16 produce to the excise officer or to the office of the commission
17 satisfactory evidence of a license or identification card issued to the
18 individual that was valid at the time the individual was unable to
19 show the license, identification card, or copy.
20 (d) If an employee who is unable to show a license, identification
21 card, or copy to an excise officer fails to produce satisfactory
22 evidence within five (5) days in the manner described in subsection
23 (c), the commission may impose a civil penalty on the permit
24 holder.
25 Sec. 13. (a) If a permit holder fails to attend or participate in a
26 hearing without good cause, the hearing judge may recommend to
27 the commission that the commission suspend or revoke the permit
28 holder's permit or impose a fine on the permit holder of up to one
29 thousand dollars ($1,000).
30 (b) A hearing judge may grant a continuance of a hearing upon
31 written motion showing good cause for the continuance.
32 Sec. 14. If a permit holder distributes craft hemp at a location:
33 (1) determined to be a public nuisance; or
34 (2) at which conduct or acts that are crimes or infractions
35 under IC 35 occur;
36 the commission may impose sanctions against the permit holder.
37 Chapter 4. Craft Hemp Manufacturer Permits
38 Sec. 1. (a) A person may not manufacture craft hemp without a
39 valid craft hemp manufacturer permit issued by the commission.
40 (b) A permit may be issued only to a person who owns or
41 operates premises consisting of a permanent building or structure
42 where the craft hemp is manufactured.
ES 478—LS 6068/DI 120 22
1 (c) A craft hemp manufacturer permit holder may only sell craft
2 hemp to a craft hemp distributor permit holder or a craft hemp
3 retail permit holder issued by the commission. A craft hemp
4 manufacturer permit holder may not sell a craft hemp product
5 directly to a consumer without first obtaining a craft hemp retail
6 permit issued by the commission.
7 Sec. 2. (a) A person who desires a permit must provide the
8 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 where the
33 craft hemp is manufactured.
34 (c) A permit holder shall conspicuously display the holder's
35 permit on the holder's premises where the craft hemp is
36 manufactured.
37 (d) Any intentional misstatement or suppression of a material
38 fact in an application filed under this section constitutes grounds
39 for denial of the permit.
40 (e) A permit may be issued only to a person who meets the
41 following requirements:
42 (1) If the person is an individual, the person must be at least
ES 478—LS 6068/DI 120 23
1 twenty-one (21) years of age.
2 (2) The person must be authorized to do business in Indiana.
3 (3) The person has not had an interest in a permit revoked by
4 the commission for that business location within the preceding
5 one (1) year.
6 (f) The fees collected under this section shall be deposited in the
7 enforcement and administration fund under IC 7.1-4-10.
8 Sec. 3. (a) Subject to available resources, the commission shall
9 not issue a craft hemp manufacturer permit, except as otherwise
10 authorized in this title and subject to the other restrictions
11 contained in this title, to the following persons:
12 (1) A person who does not have lawful status (as defined in
13 IC 9-13-2-92.3).
14 (2) A person who has been convicted within five (5) years
15 before the date of application of:
16 (A) a federal crime having a sentence of at least one (1)
17 year;
18 (B) a Level 1, Level 2, Level 3, Level 4, or Level 5 felony;
19 or
20 (C) a crime in a state other than Indiana having a penalty
21 equal to the penalty for an Indiana Level 1, Level 2, Level
22 3, Level 4, or Level 5 felony.
23 However, this subdivision does not apply to a conviction that
24 has been expunged under IC 35-38-9.
25 (3) A person who does not meet at least one (1) of the
26 following descriptions:
27 (A) The person owns the premises to which the permit will
28 be applicable.
29 (B) The person has a valid lease on the premises:
30 (i) at the time of the application for a permit; and
31 (ii) for the duration of the period in which the person
32 manufactures in the manner described in section 1 of this
33 chapter.
34 (C) The person has a franchise agreement with a
35 franchisor:
36 (i) that owns the premises to which the permit will be
37 applicable; or
38 (ii) that has a bona fide lease on the premises for the full
39 period for which the permit is to be issued.
40 (4) A person whose place of business is conducted by a
41 manager or agent, unless the manager or agent possesses the
42 same qualifications required for the issuance of a craft hemp
ES 478—LS 6068/DI 120 24
1 manufacturer permit to the person.
2 (5) A minor.
3 (6) A person non compos mentis.
4 (7) A person who has held a permit under this article or under
5 this title and who has had that permit under this article or this
6 title, as applicable, revoked within one (1) year prior to the
7 date of application for a craft hemp manufacturer permit.
8 (8) A person who has made an application for a permit under
9 this article or permit of any type under this title that has been
10 denied less than one (1) year prior to the person's application
11 for a craft hemp manufacturer permit unless the first
12 application was denied by reason of a procedural or technical
13 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 25
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 7.1-8-5-2 or IC 7.1-8-8-2;
19 (2) has committed habitual illegal sale of craft hemp as
20 established under IC 7.1-8-8-2(g); or
21 (3) has committed habitual illegal entrance by a minor as
22 established under IC 35-46-1-11.7(f).
23 Sec. 9. (a) If a permit has:
24 (1) expired; or
25 (2) been suspended;
26 the commission may not reinstate or renew the permit until all civil
27 penalties imposed against the permit holder for violating
28 IC 35-46-1-10, IC 35-46-1-10.2, IC 35-46-1-11, IC 35-46-1-11.2,
29 IC 35-46-1-11.4, IC 35-46-1-11.5, IC 35-46-1-11.7, or
30 IC 35-46-1-11.8 have been paid.
31 (b) The failure to pay a civil penalty described in subsection (a)
32 is a Class B infraction.
33 (c) If a permit has been revoked, the commission may not
34 reinstate or renew the permit for at least one hundred eighty (180)
35 days after the date of revocation. The commission may reinstate or
36 renew the permit only upon a reasonable showing by the applicant
37 that the applicant shall:
38 (1) exercise due diligence in the manufacturing of craft hemp;
39 and
40 (2) properly supervise and train the applicant's employees or
41 agents in the handling and manufacturing of craft hemp.
42 If a permit is reinstated or renewed, the applicant of the permit
ES 478—LS 6068/DI 120 26
1 shall pay an application fee of one thousand dollars ($1,000).
2 Sec. 10. The commission may mitigate civil penalties imposed
3 against a permit holder for violating IC 7.1-8-5-2, IC 7.1-8-8-2,
4 IC 35-46-1-11.7, or any of the provisions of this chapter if a permit
5 holder provides a training program for the permit holder's
6 employees that includes training in laws governing the
7 manufacturing of craft hemp.
8 Sec. 11. A permit holder shall exercise due diligence in the
9 supervision and training of the permit holder's employees or agents
10 in the handling and manufacturing of craft hemp.
11 Sec. 12. (a) An employee of a permit holder must hold a valid:
12 (1) driver's license issued by the state of Indiana or another
13 state; or
14 (2) identification card issued by the state of Indiana, another
15 state, or the United States;
16 to manufacture craft hemp.
17 (b) An employee must have the employee's driver's license or
18 identification card or a copy of the employee's driver's license or
19 identification card:
20 (1) either:
21 (A) in the employee's possession; or
22 (B) on file with the employee's employer; and
23 (2) upon request, readily available to show to an excise officer
24 or law enforcement officer;
25 when manufacturing craft hemp.
26 (c) If an employee holds a valid license or identification card as
27 described in subsection (a) but is unable to show the license,
28 identification card, or a copy to an excise officer under subsection
29 (b) because:
30 (1) the employee has left the license, identification card, or
31 copy in another location; or
32 (2) the license, identification card, or copy has otherwise been
33 lost or mislaid;
34 the employee may, within five (5) days of the employee's inability
35 to show the license, identification card, or copy to the excise officer,
36 produce to the excise officer or to the office of the commission
37 satisfactory evidence of a license or identification card issued to the
38 individual that was valid at the time the individual was unable to
39 show the license, identification card, or copy.
40 (d) If an employee who is unable to show a license, identification
41 card, or copy to an excise officer fails to produce satisfactory
42 evidence within five (5) days in the manner described in subsection
ES 478—LS 6068/DI 120 27
1 (c), the commission may impose a civil penalty on the permit
2 holder.
3 Sec. 13. (a) If a permit holder fails to attend or participate in a
4 hearing without good cause, the hearing judge may recommend to
5 the commission that the commission suspend or revoke the permit
6 holder's permit or impose a fine on the permit holder of up to one
7 thousand dollars ($1,000).
8 (b) A hearing judge may grant a continuance of a hearing upon
9 written motion showing good cause for the continuance.
10 Sec. 14. If a permit holder manufactures craft hemp at a
11 location:
12 (1) determined to be a public nuisance; or
13 (2) at which conduct or acts that are crimes or infractions
14 under IC 35 occur;
15 the commission may impose sanctions against the permit holder.
16 Chapter 5. Retail Establishments
17 Sec. 1. (a) Except as provided in subsection (b), a craft hemp
18 retail establishment must keep the craft hemp behind a bar or in
19 a location to which a purchaser does not have access. If a person
20 purchases craft hemp, an employee of the retail establishment shall
21 remove the craft hemp from behind the bar or from the
22 inaccessible location and deliver it to the purchaser.
23 (b) This subsection does not apply to the holder of a liquor
24 dealer's permit issued under IC 7.1-3-10-4 that is also a craft retail
25 hemp establishment.
26 Sec. 2. (a) A retail establishment may not permit consumption
27 of craft hemp on the premises of the retail establishment.
28 (b) This subsection does not apply to the service of beverages
29 that contain craft hemp by the following holders of any beer,
30 liquor, or wine retailer's permits issued under IC 7.1:
31 (1) A racetrack.
32 (2) A restaurant.
33 (3) A social club.
34 (4) A fraternal club.
35 (5) A resort hotel.
36 (6) An economic redevelopment site.
37 (7) A gaming center.
38 (8) An airport.
39 (9) A horse track.
40 (10) The state fairgrounds.
41 (11) A catering hall.
42 (12) A historic district.
ES 478—LS 6068/DI 120 28
1 (13) A professional sports stadium.
2 (14) A concert venue.
3 Chapter 6. Manufacturing Facilities
4 Sec. 1. (a) A craft hemp manufacturer must submit any
5 proposed craft hemp packaging to the commission for preapproval
6 before delivering or causing delivery of craft hemp to a retail
7 establishment.
8 (b) If the commission does not issue a denial under subsection
9 (a) within thirty (30) days, the packaging is deemed approved and
10 eligible for sale.
11 Chapter 7. Advertising
12 Sec. 1. (a) The commission shall have the power to regulate and
13 prohibit advertising, signs, displays, posters, and designs intended
14 to advertise craft hemp or the place where craft hemp is sold.
15 (b) The commission shall not exercise the prohibition power
16 contained in subsection (a) for any advertisement appearing in a
17 newspaper which:
18 (1) is published at least once a week;
19 (2) regularly publishes information of current news interest
20 to the community; and
21 (3) circulates generally to the public in any part of Indiana,
22 regardless of where printed.
23 However, a newspaper shall not include publications devoted to
24 special interests such as labor, religious, fraternal, society, or trade
25 publications or journals or publications owned or issued by
26 political organizations or parties.
27 (c) The commission shall not exercise the prohibition power
28 contained in subsection (a) for any advertisement broadcast over
29 duly licensed radio and television stations.
30 (d) All advertisements relating to craft hemp, whether published
31 in a newspaper or broadcast over radio or television, shall conform
32 to the rules and regulations of the commission.
33 (e) The commission shall not exercise the prohibition power
34 contained in subsection (a) for advertising in the official program
35 of the Indianapolis 500 Race or the Madison Regatta, Inc.,
36 Hydroplane Race.
37 (f) Notwithstanding any other law, the commission may not
38 prohibit the use of an illuminated sign advertising craft hemp by
39 brand name that is displayed within the interior or on the exterior
40 of the premises covered by the permit, regardless of whether the
41 sign is illuminated constantly or intermittently. However, it is
42 unlawful for a craft hemp distributor permit holder to sell, give,
ES 478—LS 6068/DI 120 29
1 supply, furnish, or grant to, or maintain for a retail craft hemp
2 permit holder, an illuminated advertising sign in a manner that
3 violates the trade practice restrictions of the commission or this
4 title. It is unlawful for a retail craft hemp permit holder to receive,
5 accept, display, or permit to be displayed, an illuminated
6 advertising sign sold, given, supplied, furnished, granted, or
7 maintained in violation of this subsection. Unless otherwise stated,
8 when a recipient receives an illuminated advertising sign, the
9 illuminated advertising sign becomes the property and
10 responsibility of the recipient.
11 (g) The commission may not prohibit the advertisement of:
12 (1) craft hemp; or
13 (2) a place where craft hemp may be obtained;
14 in a program, scorecard, handbill, throw-away newspaper, or
15 menu. However, those advertisements must conform to the rules of
16 the commission.
17 (h) The commission shall prohibit a retail craft hemp permit
18 holder from making:
19 (1) a false advertisement;
20 (2) a misleading advertisement;
21 (3) a deceptive statement in an advertisement;
22 (4) an unsubstantiated health claim about a product that is
23 not consistent with the product's labeling; or
24 (5) a statement that disparages a competitor.
25 (i) The commission shall prohibit a retail craft hemp permit
26 holder from placing a physical advertisement within five hundred
27 (500) feet of:
28 (1) a school;
29 (2) a playground;
30 (3) a church; and
31 (4) other locations that the commission determines could
32 contain minors.
33 Sec. 2. The following apply to an outdoor sign on the premises
34 of a permittee:
35 (1) A permittee may use the term "craft hemp", "craft hemp
36 flower", or "craft hemp flower product" on its outdoor
37 signage.
38 (2) A permittee's outdoor signage may not do any of the
39 following:
40 (A) Use the terms "marijuana" or "cannabis".
41 (B) Use a colloquial term for marijuana or marijuana
42 products, such as pot, reefer, or weed.
ES 478—LS 6068/DI 120 30
1 (C) Display an image or visual representation of craft
2 hemp, marijuana, or paraphernalia, or an image that
3 indicates the presence of a product such as smoke, edibles,
4 or gummies.
5 (D) Indicate the presence of a particular compound of craft
6 hemp, such as THC, delta-8, delta-10, or THCA.
7 (3) A permittee's outdoor signage must comply with any
8 applicable local ordinances or regulations relating to signs.
9 Sec. 3. (a) A permittee that maintains a web page must require
10 an individual to affirmatively indicate that the individual is at least
11 twenty-one (21) years of age before accessing the content of the
12 web page.
13 (b) The social media account of a permittee that advertises craft
14 hemp must contain a clearly visible notice on the main page stating
15 that only individuals at least twenty-one (21) years of age may
16 follow the account.
17 (c) A permittee may only send electronic mail advertising its
18 business if the recipient has affirmatively opted-in to receive
19 electronic mail from the permittee.
20 (d) A permittee that uses a QR code in an electronic
21 advertisement must require an individual to affirmatively indicate
22 that the individual is at least twenty-one (21) years of age before
23 accessing the content of the site accessed by the QR code.
24 Sec. 4. A permittee may not do any of the following:
25 (1) Use items such as toys or inflatables, movie or cartoon
26 characters, or any other depiction or image likely to be
27 appealing to children, if the item, image, or depiction suggests
28 an intent to cause children to become interested in the
29 purchase or consumption of craft hemp.
30 (2) Use or employ a commercial mascot outside of, and in
31 proximity to, a permitted business.
32 Chapter 8. Criminal Acts
33 Sec. 1. (a) This section does not apply to a person who holds a
34 permit to sell, distribute, or manufacture craft hemp as defined in
35 IC 7.1-8-1-1.
36 (b) A person who knowingly or intentionally:
37 (1) purchases;
38 (2) receives;
39 (3) manufactures;
40 (4) imports;
41 (5) transports;
42 (6) causes to be imported or transports from another state,
ES 478—LS 6068/DI 120 31
1 territory, or country, into Indiana;
2 (7) transports;
3 (8) ships;
4 (9) barters;
5 (10) gives away;
6 (11) exchanges;
7 (12) furnishes;
8 (13) handles; or
9 (14) possesses;
10 craft hemp or a product containing THC (tetrahydrocannabinol)
11 for purposes of sale, commits a Class B misdemeanor.
12 (c) An individual who knowingly or intentionally acquires craft
13 hemp product from a person that the individual knows does not
14 hold an appropriate permit under this article to sell, deliver,
15 furnish, or give craft hemp product commits a Class B
16 misdemeanor.
17 Sec. 2. (a) A person who recklessly, knowingly, or intentionally
18 sells, barters, exchanges, provides, or furnishes:
19 (1) craft hemp product; or
20 (2) a product containing THC (tetrahydrocannabinol);
21 to a minor commits dealing craft hemp to a minor, a Class A
22 misdemeanor.
23 (b) An offense described in subsection (a) is a:
24 (1) Level 6 felony if the person has a prior unrelated
25 conviction under this section; or
26 (2) Level 5 felony if the consumption, ingestion, or use of the
27 craft hemp product or THC is the proximate cause of serious
28 bodily injury or the death of an individual.
29 (c) The following defenses are available to a person or permittee
30 accused of dealing craft hemp to a minor:
31 (1) The buyer or recipient produced a driver's license that
32 included the purchaser's or recipient's photograph and
33 indicated the purchaser or recipient is at least twenty-one (21)
34 years of age to make the purchase.
35 (2) The buyer or recipient produced a photographic
36 identification card issued under IC 9-24-16-1 or a similar card
37 issued under the laws of another state or the federal
38 government that indicated the purchaser or recipient was at
39 least twenty-one (21) years of age to make the purchase.
40 (3) An ordinary, prudent individual would believe the
41 purchaser or recipient was not less than forty (40) years of
42 age based on the purchaser's or recipient's appearance.
ES 478—LS 6068/DI 120 32
1 (d) It is a defense to a prosecution under this section that a
2 permittee sold or provided craft hemp product to a minor who
3 acted in the ordinary course of employment or a business
4 concerning craft hemp products for the following activities:
5 (1) Agriculture.
6 (2) Processing.
7 (3) Transporting.
8 (4) Wholesaling.
9 (5) Retailing.
10 (e) A person who distributes or sells craft hemp directly to
11 purchasers through a website must use a reliable online age
12 verification system or obtain and examine a copy of the
13 purchaser's government issued identification.
14 (f) A permittee who violates subsection (a) or (e) is subject to the
15 following civil penalties:
16 (1) One thousand dollars ($1,000) for the first violation.
17 (2) Five thousand dollars ($5,000) for a second violation that
18 occurs within two (2) years of a first violation and the
19 suspension of the retailer's permit for up to six (6) 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 retailer's permit.
23 (g) A permittee who violates subsection (a) at least three (3)
24 times in a one (1) year period commits habitual furnishing of craft
25 hemp to a minor.
26 (h) A retailer whose permit is suspended under subsection (f)(2)
27 may reapply for a permit after one (1) year of the suspension.
28 Sec. 3. (a) A minor who knowingly or intentionally possesses:
29 (1) craft hemp; or
30 (2) a product containing THC (tetrahydrocannabinol);
31 commits possession of craft hemp by a minor, a Class B
32 misdemeanor.
33 (b) It is a defense to a prosecution under this section that the
34 accused minor acted in the ordinary course of employment or a
35 business concerning craft hemp products for the following
36 activities:
37 (1) Agriculture.
38 (2) Processing.
39 (3) Transporting.
40 (4) Wholesaling.
41 (5) Retailing.
42 SECTION 13. IC 15-15-13-6.7 IS ADDED TO THE INDIANA
ES 478—LS 6068/DI 120 33
1 CODE AS A NEW SECTION TO READ AS FOLLOWS
2 [EFFECTIVE JULY 1, 2025]: Sec. 6.7. As used in this chapter,
3 "work in progress hemp extract" means a compound:
4 (1) derived from hemp;
5 (2) intended to be processed into a hemp product;
6 (3) in a partially processed state;
7 (4) having a concentration of delta-9 THC that exceeds
8 three-tenths of one percent (0.3%) by dry weight; and
9 (5) not marketed for consumer use or consumption.
10 SECTION 14. IC 15-15-13-11, AS AMENDED BY P.L.190-2019,
11 SECTION 12, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
12 JULY 1, 2025]: Sec. 11. Only a hemp licensee, the licensee's designee,
13 or the licensee's agents may be permitted to transport hemp or work in
14 progress hemp extract off a production site. When transporting hemp
15 or work in progress hemp extract off the production site, the hemp
16 licensee, designee, or agent shall have in the licensee's, designee's, or
17 agent's possession the licensing documents from the state seed
18 commissioner evidencing that the hemp or work in progress hemp
19 extract is from certified seed produced by a licensed grower.
20 SECTION 15. IC 15-15-13-11.5 IS ADDED TO THE INDIANA
21 CODE AS A NEW SECTION TO READ AS FOLLOWS
22 [EFFECTIVE JULY 1, 2025]: Sec. 11.5. (a) Subject to subsection (b),
23 a handler holding a valid license under this chapter may possess,
24 manufacture, store, transport, or sell work in progress hemp
25 extract.
26 (b) Work in progress hemp extract may be sold only to a:
27 (1) handler holding a valid license under this chapter;
28 (2) person holding a valid hemp or cannabis license in another
29 jurisdiction; or
30 (3) craft hemp manufacturer permit holder, as described in
31 IC 7.1-8-4.
32 SECTION 16. IC 15-15-13-19, AS ADDED BY P.L.190-2019,
33 SECTION 20, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
34 JULY 1, 2025]: Sec. 19. (a) Hemp bud (as defined in IC 35-48-1-17.2)
35 and hemp flower (as defined in IC 35-48-1-17.3) Craft hemp flower
36 (as defined by IC 35-31.5-2-68.8) may be transported or sold
37 intrastate only to a processor licensed under this chapter for
38 processing or manufacturing into a legal hemp product, including
39 a craft hemp flower product (as defined by IC 35-31.5-2-68.9).
40 (b) Craft hemp flower may be sold and transported interstate in
41 accordance with section 11 of this chapter.
42 (b) (c) The state seed commissioner may impose a civil penalty
ES 478—LS 6068/DI 120 34
1 under section 13 of this chapter for a violation of subsection (a).
2 SECTION 17. IC 16-42-2-2 IS AMENDED TO READ AS
3 FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 2. (a) A food is
4 considered adulterated under any of the following conditions:
5 (1) If the food bears or contains any poisonous or deleterious
6 substance that may make the food injurious to health. However,
7 if the substance is not an added substance, the food is not to be
8 considered adulterated under this subdivision if the quantity of the
9 substance in the food does not ordinarily make the food injurious
10 to health.
11 (2) If:
12 (A) the food bears or contains any added poison or added
13 deleterious substance (other than a poison or a deleterious
14 substance that is a pesticide chemical in or on a raw
15 agricultural commodity, a food additive, or a color additive)
16 that is unsafe within the meaning of section 5 of this chapter;
17 (B) the food is a raw agricultural commodity and the food
18 bears or contains a pesticide chemical that is unsafe under
19 section 5 of this chapter; or
20 (C) the food is or contains a food additive that is unsafe under
21 section 5 of this chapter.
22 However, when a pesticide chemical is used in or on a raw
23 agricultural commodity in conformity with an exemption granted
24 or tolerance prescribed under section 5 of this chapter and the raw
25 agricultural commodity has been subjected to processing such as
26 canning, cooking, freezing, dehydrating, or milling, the residue of
27 the pesticide chemical remaining in or on the processed food,
28 notwithstanding section 5 of this chapter and clause (C) is not
29 considered unsafe if the residue in or on the raw agricultural
30 commodity has been removed to the extent possible in good
31 manufacturing practice, and the concentration of the residues in
32 the processed food, when ready to eat, is not greater than the
33 tolerance prescribed for the raw agricultural commodity.
34 (3) If the food consists in whole or in part of a diseased,
35 contaminated, filthy, putrid, or decomposed substance or if the
36 food is otherwise unfit for food.
37 (4) If the food has been produced, transported, handled, prepared,
38 packed, or held under unsanitary conditions or in unsanitary
39 containers as the result of which the food may have become
40 contaminated with filth or made diseased, unwholesome, or
41 injurious to health.
42 (5) If the food is, in whole or in part, the product of:
ES 478—LS 6068/DI 120 35
1 (A) a diseased animal;
2 (B) an animal that has died otherwise than by slaughter; or
3 (C) an animal that has been fed upon the uncooked offal from
4 a slaughterhouse.
5 (6) If the food's container is composed in whole or in part of any
6 poisonous or deleterious substance that may make the contents
7 injurious to health.
8 (7) If the food has been intentionally subjected to radiation, unless
9 the use of the radiation was in conformity with a rule or an
10 exemption in effect under section 5 of this chapter.
11 (8) If any valuable constituent has been in whole or in part
12 omitted or abstracted from the food.
13 (9) If any substance has been substituted wholly or in part.
14 (10) If damage or inferiority has been concealed in any manner.
15 (11) If any substance has been added to the food or mixed or
16 packed with the food to:
17 (A) increase the food's bulk or weight;
18 (B) reduce the food's quality or strength;
19 (C) make the food appear better or of greater value than the
20 food is; or
21 (D) create a deceptive appearance.
22 (12) If the food bears or contains a coal-tar color other than one
23 from a batch that has been certified by the federal Food and Drug
24 Administrator, as provided by regulations promulgated under
25 authority of the Federal Act.
26 (13) If the food is a confectionery and has partially or completely
27 imbedded embedded in the food any nonnutritive object.
28 However, this subdivision does not apply in the case of any
29 nonnutritive object if, in the judgment of the state department as
30 provided by rules, the nonnutritive object is of practical,
31 functional value to the confectionery product and would not make
32 the product injurious or hazardous to health.
33 (14) If the food is a confectionery and bears or contains any
34 alcohol other than alcohol not in excess of one-half of one percent
35 (0.5%) by volume derived solely from the use of flavoring
36 extracts.
37 (15) If the food is a confectionery and bears or contains any
38 nonnutritive substance. However, this subdivision does not apply
39 to a safe, nonnutritive substance if:
40 (A) the nonnutritive substance is in or on a confectionery for
41 a practical, functional purpose in the manufacture, packaging,
42 or storing of the confectionery; and
ES 478—LS 6068/DI 120 36
1 (B) the use of the substance does not promote deception of the
2 consumer or otherwise result in adulteration or misbranding in
3 violation of any provision of IC 16-42-1 through IC 16-42-4.
4 In addition, the state department may, for the purpose of
5 avoiding or resolving uncertainty as to the application of this
6 subdivision, adopt rules allowing or prohibiting the use of
7 particular nonnutritive substances.
8 (16) If the food falls below the standard of purity, quality, or
9 strength that the food purports or is represented to possess.
10 (17) If the food is or bears or contains any color additive that is
11 unsafe under section 5 of this chapter.
12 (b) Subsection (a)(8) and (a)(9) do not prohibit:
13 (1) the removal of butterfat from; or
14 (2) the addition of skim milk to;
15 dairy products that comply with the definitions and standards for dairy
16 products adopted by the state department.
17 (c) A food is not considered adulterated for containing low THC
18 hemp extract (as defined in IC 35-48-1-17.5) or craft hemp flower
19 (as defined in IC 35-31.5-2-68.8).
20 SECTION 18. IC 24-4-21-3, AS AMENDED BY P.L.190-2019,
21 SECTION 24, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
22 JULY 1, 2025]: Sec. 3. A person may distribute low THC hemp extract
23 in Indiana only if the distributor has a certificate of analysis prepared
24 by an independent testing laboratory showing:
25 (1) that the low THC hemp extract is the product of a batch tested
26 by the independent testing laboratory;
27 (2) that the independent testing laboratory determined that the
28 batch contained not more than three-tenths percent (0.3%) total
29 delta-9-tetrahydrocannabinol (THC), including precursors by
30 weight or volume, based on the testing of a random sample of the
31 batch; and
32 (3) the cannabidiol percent present of the low THC hemp extract.
33 SECTION 19. IC 24-4-21-4, AS ADDED BY P.L.153-2018,
34 SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
35 JULY 1, 2025]: Sec. 4. (a) Except as provided in subsection (b), low
36 THC hemp extract must be distributed in packaging that contains the
37 following information:
38 (1) A scannable bar code or QR code linked to a document that
39 contains information with respect to the manufacture of the low
40 THC hemp extract, including the:
41 (A) batch identification number;
42 (B) product name;
ES 478—LS 6068/DI 120 37
1 (C) batch date;
2 (D) expiration date, which must be not more than two (2) years
3 from the date of manufacture;
4 (E) batch size;
5 (F) total quantity produced;
6 (G) ingredients used, including the:
7 (i) ingredient name;
8 (ii) name of the company that manufactured the ingredient;
9 (iii) company or product identification number or code, if
10 applicable; and
11 (iv) ingredient lot number; and
12 (H) download link for a certificate of analysis for the low THC
13 hemp extract.
14 (2) The batch number.
15 (3) The Internet address of a web site website to obtain batch
16 information.
17 (4) The expiration date.
18 (5) The number of milligrams of low THC hemp extract.
19 (6) The manufacturer.
20 (7) The fact that the product contains not more than three-tenths
21 of one percent (0.3%) total delta-9-tetrahydrocannabinol (THC),
22 including precursors, by weight or volume.
23 (b) Before July 1, 2018, low THC hemp extract may be distributed
24 in Indiana without having met the requirements described in subsection
25 (a).
26 (b) After June 30, 2025, the packaging of low THC hemp extract
27 may not:
28 (1) contain any statement, artwork, or design that could
29 reasonably mislead any person to believe that the package
30 contains anything other than low THC hemp extract; or
31 (2) bear an unauthorized trademark, trade name, famous
32 mark, or other identifying mark, imprint, or device, or any
33 likeness thereof.
34 SECTION 20. IC 24-4-22-3, AS ADDED BY P.L.153-2018,
35 SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
36 JULY 1, 2025]: Sec. 3. (a) Except as provided in subsection (b), A
37 person may sell low THC hemp extract at retail only if the packaging
38 complies with the requirements of IC 24-4-21-4.
39 (b) Before July 1, 2018, a person may sell low THC hemp extract at
40 retail even if the packaging does not comply with the requirements of
41 IC 24-4-21-4.
42 (b) Beginning July 1, 2025, no low THC hemp extract may be
ES 478—LS 6068/DI 120 38
1 distributed, sold, or offered for sale at retail or online to a person
2 who is less than twenty-one (21) years of age.
3 (c) Any website owned, managed, or operated by a person who
4 distributes or sells a low THC hemp extract directly to consumers
5 must verify a consumer's age by either using a reliable online age
6 verification service, or by obtaining and examining a copy of a
7 government issued identification, prior to completing a purchase.
8 (d) A person who violates this section is subject to a civil penalty
9 not to exceed the following:
10 (1) One thousand dollars ($1,000) for a first violation.
11 (2) Five thousand dollars ($5,000) for a second violation that
12 occurs within two (2) years after a first violation, and
13 suspension of the retail dealer's certificate for up to six (6)
14 months.
15 (3) Ten thousand dollars ($10,000) for each subsequent
16 violation that occurs within two (2) years of the preceding
17 violation, and revocation of the retail dealer's certificate, with
18 a one (1) year waiting period for reapplication.
19 (e) It is a defense to a violation under this section that the
20 distributor or seller examined the purchaser's or recipient's
21 driver's license, or other valid government issued identification,
22 that positively identified the purchaser or recipient as being at least
23 twenty-one (21) years of age.
24 SECTION 21. IC 24-4-24.9 IS ADDED TO THE INDIANA CODE
25 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
26 JULY 1, 2025]:
27 Chapter 24.9. Distribution of Craft Hemp Flower Products
28 Sec. 1. As used in this chapter, "certificate of analysis" means
29 a certificate from an independent testing laboratory describing the
30 results of the laboratory's testing of a sample.
31 Sec. 2. As used in this chapter, "craft hemp flower product" has
32 the meaning set forth in IC 35-31.5-2-68.9.
33 Sec. 3. As used in this chapter, "independent testing laboratory"
34 means a laboratory:
35 (1) with respect to which no person having a direct or indirect
36 interest in the laboratory also has a direct or indirect interest
37 in a facility that:
38 (A) processes, distributes, or sells a craft hemp flower
39 product, or a substantially similar substance in another
40 jurisdiction;
41 (B) cultivates, processes, distributes, dispenses, or sells
42 marijuana;
ES 478—LS 6068/DI 120 39
1 (C) cultivates, processes, or distributes hemp; or
2 (D) processes, distributes, or sells low THC hemp extract
3 (as defined in IC 35-48-1-17.5); and
4 (2) that is accredited as a testing laboratory under
5 International Organization for Standardization (ISO) 17025
6 by a third party accrediting body such as the American
7 Association for Laboratory Accreditation (A2LA) or Assured
8 Calibration and Laboratory Accreditation Select Services
9 (ACLASS).
10 Sec. 4. As used in this chapter, "tamper evident packaging"
11 means a package having at least one (1) indicator or a barrier to
12 entry that, if breached or missing, can reasonably be expected to
13 provide visible evidence to consumers that tampering has occurred.
14 Sec. 5. (a) Before a person may distribute a craft hemp flower
15 product, the distributor must have a certificate of analysis
16 prepared by an independent testing laboratory showing the
17 following:
18 (1) That the craft hemp flower product is the product of a
19 batch tested by the independent testing laboratory.
20 (2) That the independent testing laboratory determined that
21 the batch contained not more than three-tenths of one percent
22 (0.3%) tetrahydrocannabinol (THC), by weight or volume,
23 based on the testing of a random sample of the batch.
24 (3) That the batch has been tested for and does not exceed the
25 acceptable levels set forth under section 7 of this chapter for
26 the following contaminants:
27 (A) Heavy metals, including cadmium, lead, arsenic, and
28 mercury.
29 (B) Pesticides.
30 (C) Herbicides.
31 (D) Mycotoxins.
32 (E) Bacterial toxins.
33 (F) Chemical solvent residues.
34 (4) The potency of the craft hemp flower product, including
35 the projected percentage of:
36 (A) THC;
37 (B) cannabidiol; and
38 (C) other cannabinoids in the craft hemp flower product;
39 by weight or volume.
40 (b) Each batch of a craft hemp flower product submitted to an
41 independent testing laboratory under this section must have been
42 harvested at the same time and cultivated in a contiguous area in
ES 478—LS 6068/DI 120 40
1 the same field or facility.
2 Sec. 6. A craft hemp flower product must be distributed in
3 tamper evident packaging that contains the following information:
4 (1) A scannable bar code or QR code linked to a document
5 that contains information with respect to the craft hemp
6 flower product, including the:
7 (A) batch identification number;
8 (B) product name;
9 (C) batch date;
10 (D) expiration date, which must be not more than two (2)
11 years from the date of harvest;
12 (E) batch size;
13 (F) total quantity produced;
14 (G) ingredients used, including the:
15 (i) ingredient name;
16 (ii) name of the company that manufactured the
17 ingredient;
18 (iii) company or product identification number or code,
19 if applicable; and
20 (iv) ingredient lot number; and
21 (H) download link for a certificate of analysis for the craft
22 hemp flower product.
23 (2) The batch identification number.
24 (3) The address of a website to obtain batch information.
25 (4) The expiration date, which must be not more than two (2)
26 years from the date of harvest.
27 (5) The number of grams of craft hemp flower (as defined by
28 IC 35-31.5-2-68.8) contained in the craft hemp flower product.
29 (6) The facility that produced the craft hemp flower product.
30 (7) The fact that the product contains not more than
31 three-tenths of one percent (0.3%) tetrahydrocannabinol
32 (THC), by weight or volume.
33 Sec. 7. A craft hemp flower product may not be distributed if a
34 certificate of analysis prepared by an independent testing
35 laboratory shows any of the following:
36 (1) A concentration of metals that is more than any of the
37 following:
38 (A) Four-tenths (0.4) part per million of cadmium.
39 (B) Five-tenths (0.5) part per million of lead.
40 (C) Four-tenths (0.4) part per million of arsenic.
41 (D) Two-tenths (0.2) part per million of mercury.
42 (2) A concentration of microbiological units that is more than
ES 478—LS 6068/DI 120 41
1 any of the following:
2 (A) One (1) colony forming unit per gram of Shiga-Toxin
3 Escherichia coli.
4 (B) One (1) colony forming unit per gram of Salmonella
5 spp.
6 (C) Ten thousand (10,000) colony forming units of
7 culturable mold.
8 (3) A concentration of residual solvents and chemicals that is
9 not more than any of the following:
10 (A) Five thousand (5,000) parts per million of butane.
11 (B) Two (2) parts per million of benzene.
12 (C) Five thousand (5,000) parts per million of heptane.
13 (D) Two hundred ninety (290) parts per million of hexane.
14 (E) Eight hundred ninety (890) parts per million of toluene.
15 (F) One (1) part per million of total xylenes, including
16 ortho-xylene, meta-xylene, and para-xylene.
17 Sec. 8. (a) A person who knowingly or intentionally distributes
18 or sells a craft hemp flower product in violation of this chapter
19 commits a Class B misdemeanor. However, the offense is a Class
20 A misdemeanor if the person has a prior unrelated conviction for
21 a violation of this chapter.
22 (b) The penalties in this section are in addition to any criminal
23 penalties that may be imposed for unlawful possession or
24 distribution of a controlled substance.
25 SECTION 22. IC 34-30-2.1-72, AS ADDED BY P.L.105-2022,
26 SECTION 12, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
27 JULY 1, 2025]: Sec. 72. IC 7.1-5-10-15 (Concerning alcoholic
28 beverage permittee or permittee's agent refusing to serve alcoholic
29 beverages or craft hemp product to certain persons).
30 SECTION 23. IC 34-30-2.1-73, AS ADDED BY P.L.105-2022,
31 SECTION 12, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
32 JULY 1, 2025]: Sec. 73. IC 7.1-5-10-15.5 (Concerning persons who
33 furnish an alcoholic beverage or craft hemp product for damages
34 caused by an impaired or intoxicated person).
35 SECTION 24. IC 35-31.5-2-68.8 IS ADDED TO THE INDIANA
36 CODE AS A NEW SECTION TO READ AS FOLLOWS
37 [EFFECTIVE JULY 1, 2025]: Sec. 68.8. (a) "Craft hemp flower"
38 means the harvested reproductive organ, whether immature or
39 mature, of the female Cannabis sativa L. plant containing not more
40 than three-tenths of one percent (0.3%) of delta-9
41 tetrahydrocannabinol (THC) by weight or volume, in a form that
42 is intended to allow THC to be introduced into the human body by
ES 478—LS 6068/DI 120 42
1 inhalation of smoke.
2 (b) The term does not include agricultural hemp seed (as defined
3 in IC 15-15-13-2).
4 SECTION 25. IC 35-31.5-2-68.9 IS ADDED TO THE INDIANA
5 CODE AS A NEW SECTION TO READ AS FOLLOWS
6 [EFFECTIVE JULY 1, 2025]: Sec. 68.9. (a) "Craft hemp flower
7 product" means a substance or product for sale to consumers that:
8 (1) is derived from or contains any part of craft hemp flower;
9 (2) contains not more than:
10 (A) three-tenths of one percent (0.3%) of delta-9
11 tetrahydrocannabinol (THC); and
12 (B) two hundred sixty-three thousandths percent (0.263%)
13 of tetrahydrocannabinolic acid (THCA);
14 by weight or volume;
15 (3) contains no other controlled substances; and
16 (4) is in the form of:
17 (A) a gummy that contains not more than one hundred
18 (100) milligrams of THC, delta-8 tetrahydrocannabinol,
19 delta-10 tetrahydrocannabinol, or hexahydrocannabinol
20 per serving and not more than three thousand (3,000)
21 milligrams of THC, delta-8 tetrahydrocannabinol, delta-10
22 tetrahydrocannabinol, or hexahydrocannabinol per
23 package;
24 (B) an edible that contains not more than one hundred
25 (100) milligrams of THC, delta-8 tetrahydrocannabinol,
26 delta-10 tetrahydrocannabinol, or hexahydrocannabinol
27 per individualized unit and not more than three thousand
28 (3,000) milligrams of THC, delta-8 tetrahydrocannabinol,
29 delta-10 tetrahydrocannabinol, or hexahydrocannabinol
30 per package;
31 (C) a drink that contains not more than ten (10) milligrams
32 of THC, delta-8 tetrahydrocannabinol, delta-10
33 tetrahydrocannabinol, or hexahydrocannabinol per
34 individualized unit and not more than two hundred forty
35 (240) milligrams of THC per package;
36 (D) a tincture that contains not more than one hundred
37 (100) milligrams of THC, delta-8 tetrahydrocannabinol,
38 delta-10 tetrahydrocannabinol, or hexahydrocannabinol
39 per serving and not more than three thousand (3,000)
40 milligrams of THC, delta-8 tetrahydrocannabinol, delta-10
41 tetrahydrocannabinol, or hexahydrocannabinol per
42 package;
ES 478—LS 6068/DI 120 43
1 (E) an e-liquid that contains not more than three (3) grams
2 of THC, delta-8 tetrahydrocannabinol, delta-10
3 tetrahydrocannabinol, or hexahydrocannabinol per device;
4 or
5 (F) a topical not for human consumption.
6 The term does not include smokable hemp.
7 (b) A variance of up to twenty percent (20%) from the
8 milligram limits described in subsection (a) is permitted to account
9 for testing variability and manufacturing tolerances.
10 SECTION 26. IC 35-46-1-11.7, AS AMENDED BY P.L.56-2023,
11 SECTION 324, IS AMENDED TO READ AS FOLLOWS
12 [EFFECTIVE JULY 1, 2025]: Sec. 11.7. (a) A retail establishment in
13 which tobacco products, electronic cigarettes, and e-liquids, and craft
14 hemp products account for at least eighty-five percent (85%) of the
15 retail establishment's gross sales may not allow an individual who is
16 less than twenty-one (21) years of age to enter the retail establishment.
17 (b) An individual who is less than twenty-one (21) years of age may
18 not enter a retail establishment described in subsection (a).
19 (c) A retail establishment described in subsection (a) must
20 conspicuously post on all entrances to the retail establishment the
21 following:
22 (1) A sign in boldface type that states "NOTICE: It is unlawful for
23 a person less than 21 years old to enter this store.".
24 (2) A sign printed in letters and numbers at least one-half (1/2)
25 inch high that displays a toll free phone number for assistance to
26 callers in quitting smoking, as determined by the Indiana
27 department of health.
28 (d) A person who violates this section commits a Class C infraction.
29 Notwithstanding IC 34-28-5-4(c), a civil judgment for an infraction
30 committed under this section must be imposed as follows:
31 (1) If the person has not been cited for a violation of this section
32 in the previous one (1) year, a civil penalty of up to four hundred
33 dollars ($400).
34 (2) If the person has had one (1) violation in the previous one (1)
35 year, a civil penalty of up to eight hundred dollars ($800).
36 (3) If the person has had two (2) violations in the previous one (1)
37 year, a civil penalty of up to one thousand four hundred dollars
38 ($1,400).
39 (4) If the person has had three (3) or more violations in the
40 previous one (1) year, a civil penalty of up to two thousand dollars
41 ($2,000).
42 A person may not be cited more than once every twenty-four (24)
ES 478—LS 6068/DI 120 44
1 hours.
2 (e) Notwithstanding IC 34-28-5-5(c), civil penalties collected under
3 this section must be deposited in the Richard D. Doyle youth tobacco
4 education and enforcement fund established under IC 7.1-6-2-6.
5 (f) A person who violates subsection (a) at least six (6) times in any
6 one (1) year period commits habitual illegal entrance by a minor, a
7 Class B infraction.
8 SECTION 27. IC 35-48-1-9, AS AMENDED BY P.L.153-2018,
9 SECTION 17, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
10 JULY 1, 2025]: Sec. 9. "Controlled substance" means a drug,
11 substance, or immediate precursor in schedule I, II, III, IV, or V under:
12 (1) IC 35-48-2-4, IC 35-48-2-6, IC 35-48-2-8, IC 35-48-2-10, or
13 IC 35-48-2-12, if IC 35-48-2-14 does not apply; or
14 (2) a rule adopted by the board, if IC 35-48-2-14 applies.
15 The term does not include low THC hemp extract or a craft hemp
16 flower product.
17 SECTION 28. IC 35-48-1-9.3, AS AMENDED BY P.L.80-2019,
18 SECTION 18, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
19 JULY 1, 2025]: Sec. 9.3. (a) "Controlled substance analog" means a
20 substance that, due to its chemical structure and potential for abuse or
21 misuse, meets the following criteria:
22 (1) The substance is substantially similar to a controlled substance
23 classified under IC 35-48-2.
24 (2) The substance has a narcotic, stimulant, depressant, or
25 hallucinogenic effect on the central nervous system or is
26 represented or intended to have a narcotic, stimulant, depressant,
27 or hallucinogenic effect on the central nervous system
28 substantially similar to or greater than that of a controlled
29 substance classified under IC 35-48-2.
30 (b) The definition set forth in subsection (a) does not include:
31 (1) a controlled substance;
32 (2) a legend drug;
33 (3) a substance for which there is an approved new drug
34 application;
35 (4) any compound, mixture, or preparation that contains any
36 controlled substance, that is not for administration to a human
37 being or an animal, and that is packaged in a form or
38 concentration, or with adulterants or denaturants, such that as
39 packaged it does not present any significant potential for abuse;
40 or
41 (5) a substance to which an investigational exemption applies
42 under Section 505 of the federal Food, Drug and Cosmetic Act
ES 478—LS 6068/DI 120 45
1 (chapter 675, 52 Stat. 1052 (21 U.S.C. 355)), but only to the
2 extent that conduct with respect to the substance is pursuant to the
3 exemption; or
4 (6) low THC hemp extract; or
5 (7) a craft hemp flower product.
6 (c) For purposes of subsection (a), "substantially similar", as it
7 applies to the chemical structure of a substance, means that the
8 chemical structure of the substance, when compared to the structure of
9 a controlled substance, has a single difference in the structural formula
10 that substitutes one (1) atom or functional group for another, including:
11 (1) one (1) halogen for another halogen;
12 (2) one (1) hydrogen for a halogen;
13 (3) one (1) halogen for a hydrogen; or
14 (4) an alkyl group added or deleted:
15 (A) as a side chain to or from a molecule; or
16 (B) from a side chain of a molecule.
17 SECTION 29. IC 35-48-1-10 IS AMENDED TO READ AS
18 FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 10. (a) "Counterfeit
19 substance", for purposes of IC 35-48-4-5, means a controlled
20 substance which, or the container or labeling of which, without
21 authorization, bears the trademark, trade name, or other identifying
22 mark, imprint, number, or device, or any likeness thereof, of a
23 manufacturer, distributor, or dispenser other than the person who in
24 fact manufactured, distributed, or dispensed the substance.
25 (b) "Counterfeit substance", for purposes of IC 35-48-4-5.5,
26 means hemp flower or a hemp flower product which, or the
27 container or labeling of which, without authorization, bears the
28 trademark, trade name, or other identifying mark, imprint,
29 number, or device, or any likeness thereof, of a manufacturer,
30 distributor, or dispenser other than the person who in fact
31 manufactured, distributed, or dispensed the substance.
32 SECTION 30. IC 35-48-1-10.5 IS ADDED TO THE INDIANA
33 CODE AS A NEW SECTION TO READ AS FOLLOWS
34 [EFFECTIVE JULY 1, 2025]: Sec. 10.5. "Craft hemp flower
35 product" has the meaning set forth in IC 35-31.5-2-68.9.
36 SECTION 31. IC 35-48-1-16.8, AS ADDED BY P.L.153-2018,
37 SECTION 19, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
38 JULY 1, 2025]: Sec. 16.8. "Hashish" does not include:
39 (1) low THC hemp extract; or
40 (2) a craft hemp flower product.
41 SECTION 32. IC 35-48-1-17.2 IS REPEALED [EFFECTIVE JULY
42 1, 2025]. Sec. 17.2. (a) "Hemp bud" means the harvested immature
ES 478—LS 6068/DI 120 46
1 reproductive organ of the female hemp plant.
2 (b) The term does not include agricultural hemp seed.
3 SECTION 33. IC 35-48-1-17.3 IS REPEALED [EFFECTIVE JULY
4 1, 2025]. Sec. 17.3. (a) "Hemp flower" means the harvested
5 reproductive organ, whether immature or mature, of the female hemp
6 plant.
7 (b) The term does not include agricultural hemp seed.
8 SECTION 34. IC 35-48-1-17.5, AS AMENDED BY P.L.190-2019,
9 SECTION 28, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
10 JULY 1, 2025]: Sec. 17.5. (a) "Low THC hemp extract" means a
11 substance or compound that:
12 (1) is derived from or contains any part of the plant Cannabis
13 sativa L. that meets the definition of hemp under IC 15-15-13-6;
14 (2) contains not more than three-tenths of one percent (0.3%)
15 total delta-9-tetrahydrocannabinol (THC), including precursors,
16 by weight or volume; and
17 (3) contains no other controlled substances.
18 (b) The term does not include:
19 (1) the harvested reproductive organ, whether immature or
20 mature, of the female hemp plant; or
21 (2) smokable hemp. a craft hemp flower product; or
22 (3) smokable hemp.
23 SECTION 35. IC 35-48-1-19, AS AMENDED BY P.L.190-2019,
24 SECTION 29, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
25 JULY 1, 2025]: Sec. 19. (a) "Marijuana" means any part of the plant
26 genus Cannabis whether growing or not; the seeds thereof; the resin
27 extracted from any part of the plant, including hashish and hash oil; any
28 compound, manufacture, salt, derivative, mixture, or preparation of the
29 plant, its seeds or resin.
30 (b) The term does not include:
31 (1) the mature stalks of the plant;
32 (2) fiber produced from the stalks;
33 (3) oil or cake made from the seeds of the plant;
34 (4) any other compound, manufacture, salt, derivative, mixture,
35 or preparation of the mature stalks (except the resin extracted
36 therefrom);
37 (5) the sterilized seed of the plant which is incapable of
38 germination;
39 (6) hemp (as defined by IC 15-15-13-6);
40 (7) low THC hemp extract; or
41 (8) smokable hemp. a craft hemp flower product; or
42 (9) smokable hemp.
ES 478—LS 6068/DI 120 47
1 SECTION 36. IC 35-48-1-26.6, AS ADDED BY P.L.190-2019,
2 SECTION 30, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3 JULY 1, 2025]: Sec. 26.6. (a) Except as provided in subsection (b),
4 "smokable hemp" means a product, plant, or part of a plant
5 containing THC (tetrahydrocannabinol), not more than three-tenths
6 percent (0.3%) delta-9-tetrahydrocannabinol (THC), including
7 precursors and derivatives of THC, in a form that allows THC to be
8 introduced into the human body by inhalation of smoke. Except as
9 provided in subsection (b), the term includes craft hemp flower.
10 (1) hemp bud; and
11 (2) hemp flower.
12 (b) The term does not include a craft hemp flower product (as
13 defined by IC 35-31.5-2-68.9), or:
14 (1) a hemp plant that is; or
15 (2) parts of a hemp plant that are; or
16 (3) craft hemp flower that is;
17 grown or handled by a licensee for processing or manufacturing into a
18 legal hemp product, including a craft hemp flower product.
19 SECTION 37. IC 35-48-4-5.5 IS ADDED TO THE INDIANA
20 CODE AS A NEW SECTION TO READ AS FOLLOWS
21 [EFFECTIVE JULY 1, 2025]: Sec. 5.5. A person who:
22 (1) knowingly or intentionally:
23 (A) creates;
24 (B) delivers; or
25 (C) finances the delivery of;
26 a counterfeit substance; or
27 (2) possesses, with intent to:
28 (A) deliver; or
29 (B) finance the delivery of;
30 a counterfeit substance;
31 commits dealing in a counterfeit hemp substance, a Class A
32 misdemeanor. However, a person may be convicted of an offense
33 under subdivision (2) only if there is evidence in addition to the
34 weight of the counterfeit substance that the person intended to
35 deliver or finance the delivery of the counterfeit substance.
36 SECTION 38. IC 35-52-6-56.3 IS ADDED TO THE INDIANA
37 CODE AS A NEW SECTION TO READ AS FOLLOWS
38 [EFFECTIVE JANUARY 1, 2026]: Sec. 56.3. IC 6-7-5-8 defines a
39 crime concerning the craft hemp flower product excise tax.
40 SECTION 39. IC 35-52-6-56.4 IS ADDED TO THE INDIANA
41 CODE AS A NEW SECTION TO READ AS FOLLOWS
42 [EFFECTIVE JANUARY 1, 2026]: Sec. 56.4. IC 6-7-5-9 defines a
ES 478—LS 6068/DI 120 48
1 crime concerning the craft hemp flower product excise tax.
2 SECTION 40. IC 35-52-7-97.1 IS ADDED TO THE INDIANA
3 CODE AS A NEW SECTION TO READ AS FOLLOWS
4 [EFFECTIVE JULY 1, 2025]: Sec. 97.1. IC 7.1-8-8-1, IC 7.1-8-8-2,
5 and IC 7.1-8-8-3 define crimes concerning craft hemp product.
6 SECTION 41. IC 35-52-24-20.4 IS ADDED TO THE INDIANA
7 CODE AS A NEW SECTION TO READ AS FOLLOWS
8 [EFFECTIVE JULY 1, 2025]: Sec. 20.4. IC 24-4-24.9-8 defines a
9 crime concerning distribution or sale of craft hemp flower
10 products.
11 SECTION 42. [EFFECTIVE JANUARY 1, 2026] (a) IC 6-7-5, as
12 added by this act, applies only to retail transactions occurring after
13 December 31, 2025.
14 (b) Except as provided in subsection (c), a retail transaction is
15 considered to have occurred after December 31, 2025, if the
16 property whose transfer constitutes selling at retail is delivered to
17 the purchaser or to the place of delivery designated by the
18 purchaser after December 31, 2025.
19 (c) Notwithstanding the delivery of the property constituting
20 selling at retail after December 31, 2025, a transaction is
21 considered to have occurred before January 1, 2026, to the extent
22 that:
23 (1) the agreement of the parties to the transaction is entered
24 into before January 1, 2026; and
25 (2) payment for the property furnished in the transaction is
26 made before January 1, 2026.
27 (d) This SECTION expires January 1, 2028.
28 SECTION 43. 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.
_____
COMMITTEE REPORT
Mr. Speaker: Your Committee on Ways and Means, to which was
referred Engrossed 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:
Replace the effective dates in SECTIONS 1 through 2 with
"[EFFECTIVE JULY 1, 2020 (RETROACTIVE)]".
Page 2, between lines 33 and 34, begin a new paragraph and insert:
"SECTION 4. IC 6-7-5 IS ADDED TO THE INDIANA CODE AS
A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2026]:
Chapter 5. Craft Hemp Flower Product Excise Tax
Sec. 1. As used in this chapter, "craft hemp flower product" has
the meaning set forth in IC 35-31.5-2-68.9.
Sec. 2. As used in this chapter, "department" means the
department of state revenue and includes its employees and agents.
Sec. 3. As used in this chapter, "gross retail income" has the
meaning set forth in IC 6-2.5-1-5.
Sec. 4. As used in this chapter, "person" has the meaning set
forth in IC 6-7-1-4.
Sec. 5. As used in this chapter, "retail dealer" means a person
engaged in the selling of craft hemp flower product to ultimate
consumers.
Sec. 6. (a) An excise tax, known as the craft hemp flower
product tax, is imposed on the retail sale of craft hemp flower
product in Indiana.
(b) The craft hemp flower product tax equals fifteen percent
ES 478—LS 6068/DI 120 88
(15%) of the gross retail income received by the retail dealer for
the sale.
(c) The person who acquires craft hemp flower product in a
retail transaction is liable for the tax on the transaction, and,
except as otherwise incorporated in this chapter, shall pay the tax
to the retail dealer as a separate added amount to the consideration
in the transaction. A retail dealer that either:
(1) has a physical presence in Indiana, as described in
IC 6-2.5-2-1(c); or
(2) meets the threshold in IC 6-2.5-2-1(d);
shall collect and remit the tax as an agent for the state.
(d) If the tax is not collected by the retail dealer, the consumer
is responsible to remit the tax to the department. A retail dealer
that is required to collect and remit tax under this chapter is
jointly and severally liable for uncollected tax absent proof of
exemption or payment by the purchaser.
(e) Before the fifteenth day of each month, each retail dealer
liable for the collection and remittance of the tax imposed by this
chapter shall:
(1) file a return with the department that includes all
information required by the department, including:
(A) the name of the retail dealer;
(B) the address of the retail dealer; and
(C) the certificate number of the retail dealer's craft hemp
flower product retail dealer's certificate; and
(2) pay the tax for which it is liable under this chapter for the
preceding month.
All returns required to be filed and taxes required to be paid under
this chapter must be made in an electronic format prescribed by
the department.
(f) The following apply for purposes of this chapter:
(1) Subject to subdivision (2), all of the provisions of IC 6-2.5
relating to rights, duties, liabilities, procedures, penalties,
definitions, exemptions, and administration apply to the
imposition and administration of the tax imposed under this
section, except to the extent such provisions are in conflict or
inconsistent with the specific provisions of this chapter.
(2) Transactions exempt from the state gross retail and use
taxes under the following provisions are not exempt from the
tax imposed under this chapter:
(A) IC 6-2.5-5-5.1.
(B) IC 6-2.5-5-6.
ES 478—LS 6068/DI 120 89
(C) IC 6-2.5-5-20.
(D) IC 6-2.5-5-21.
(E) IC 6-2.5-5-22.
(g) A marketplace facilitator (as defined in IC 6-2.5-1-21.9) who
is considered a retail merchant under IC 6-2.5-4-18 for a
transaction to which this chapter applies shall collect and remit
craft hemp flower product taxes imposed on the retail transaction.
Sec. 7. (a) It is unlawful for any retail dealer to sell craft hemp
flower product in Indiana unless the retail dealer has a valid craft
hemp flower product retail dealer's certificate issued by the
department.
(b) The department shall issue certificates to applicants that
qualify under this section. A certificate issued under this section is
valid for two (2) years unless revoked or suspended by the
department and is not transferable. A craft hemp flower product
retail dealer's certificate may be revoked or suspended by the
department in the same manner, for the same reasons, and is
subject to the same procedures as for the revocation or suspension
of a retail merchant's certificate under IC 6-2.5-8-7. If a retail
dealer's retail merchant's certificate under IC 6-2.5-8 expires or is
revoked by the department, a craft hemp flower product retail
dealer's certificate issued to the retail dealer under this subsection
shall automatically be revoked without notice otherwise required
under IC 6-2.5-8.
(c) An applicant for a certificate under this section must submit
proof to the department of the appointment of an agent for service
of process in Indiana if the applicant is:
(1) an individual whose principal place of residence is outside
Indiana; or
(2) a person, other than an individual, that has its principal
place of business outside Indiana.
(d) To obtain or renew a certificate under this section, a person
must:
(1) submit, for each location where it intends to distribute
craft hemp flower product, an application that includes all
information required by the department;
(2) pay a fee of twenty-five dollars ($25) at the time of
application; and
(3) at the time of application, post a bond, issued by a surety
company approved by the department, in an amount not less
than one thousand dollars ($1,000) and conditioned on the
applicant's compliance with this chapter.
ES 478—LS 6068/DI 120 90
(e) If business is transacted at two (2) or more places by one (1)
retail dealer, a separate certificate must be obtained for each place
of business.
(f) Each certificate must be numbered, show the name and
address of the retail dealer, and be posted in a conspicuous place
at the place of business for which it is issued.
(g) If the department determines that a bond provided by a
certificate is inadequate, the department may require a new bond
in the amount necessary to fully protect the state.
Sec. 8. A retail dealer that sells craft hemp flower product in
Indiana without having obtained a craft hemp flower product
retail dealer's certificate, or after the retail dealer's certificate has
been revoked or suspended by the department, commits a Class A
misdemeanor.
Sec. 9. An individual who:
(1) is an individual retail dealer or an employee, an officer, or
a member of a corporate or partnership retail dealer; and
(2) has a duty to remit craft hemp flower product taxes to the
department;
holds those taxes in trust for the state and is personally liable for
the payment of those taxes, plus any penalties and interest
attributable to those taxes, to the state. If the individual knowingly
fails to collect or remit those taxes to the state, the individual
commits a Level 6 felony.
Sec. 10. All revenue from the tax imposed by this chapter must
be deposited in the state general fund.
Sec. 11. The department may adopt rules under IC 4-22-2
necessary to enforce this chapter.
SECTION 1. IC 6-8.1-1-1, AS AMENDED BY P.L.1-2023,
SECTION 19, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2026]: Sec. 1. "Listed taxes" or "taxes" includes only the
pari-mutuel taxes (IC 4-31-9-3 through IC 4-31-9-5); the supplemental
wagering tax (IC 4-33-12); the riverboat wagering tax (IC 4-33-13); the
slot machine wagering tax (IC 4-35-8); the type II gambling game
excise tax (IC 4-36-9); the gross income tax (IC 6-2.1) (repealed); the
utility receipts and utility services use taxes (IC 6-2.3) (repealed); the
state gross retail and use taxes (IC 6-2.5); the adjusted gross income tax
(IC 6-3); the pass through entity tax (IC 6-3-2.1); the supplemental net
income tax (IC 6-3-8) (repealed); the county adjusted gross income tax
(IC 6-3.5-1.1) (repealed); the county option income tax (IC 6-3.5-6)
(repealed); the county economic development income tax (IC 6-3.5-7)
(repealed); the local income tax (IC 6-3.6); the auto rental excise tax
ES 478—LS 6068/DI 120 91
(IC 6-6-9); the financial institutions tax (IC 6-5.5); the gasoline tax (IC
6-6-1.1); the special fuel tax (IC 6-6-2.5); the motor carrier fuel tax (IC
6-6-4.1); a motor fuel tax collected under a reciprocal agreement under
IC 6-8.1-3; the vehicle excise tax (IC 6-6-5); the aviation fuel excise
tax (IC 6-6-13); the commercial vehicle excise tax (IC 6-6-5.5); the
excise tax imposed on recreational vehicles and truck campers (IC
6-6-5.1); the hazardous waste disposal tax (IC 6-6-6.6) (repealed); the
heavy equipment rental excise tax (IC 6-6-15); the vehicle sharing
excise tax (IC 6-6-16); the cigarette tax (IC 6-7-1); the closed system
cartridge tax (IC 6-7-2-7.5); the electronic cigarette tax (IC 6-7-4); the
craft hemp flower product excise tax (IC 6-7-5); the beer excise tax
(IC 7.1-4-2); the liquor excise tax (IC 7.1-4-3); the wine excise tax (IC
7.1-4-4); the hard cider excise tax (IC 7.1-4-4.5); the petroleum
severance tax (IC 6-8-1); the various innkeeper's taxes (IC 6-9); the
various food and beverage taxes (IC 6-9); the county admissions tax
(IC 6-9-13 and IC 6-9-28); the oil inspection fee (IC 16-44-2); the
penalties assessed for oversize vehicles (IC 9-20-3 and IC 9-20-18); the
fees and penalties assessed for overweight vehicles (IC 9-20-4 and
IC 9-20-18); and any other tax or fee that the department is required to
collect or administer.".
Page 3, delete lines 23 through 33.
Page 4, line 11, delete "craft hemp".
Page 4, line 11, after "product" insert "containing THC
(tetrahydrocannabinol)".
Page 4, line 15, delete "craft hemp product," and insert "a product
containing THC (tetrahydrocannabinol),".
Page 4, line 18, delete "craft hemp product." and insert "a product
containing THC (tetrahydrocannabinol).".
Page 4, line 26, delete "craft hemp".
Page 4, line 27, delete "product" and insert "a product containing
THC (tetrahydrocannabinol)".
Page 4, line 30, delete "craft hemp".
Page 4, line 31, after "product" insert "containing THC
(tetrahydrocannabinol)".
Page 4, line 32, delete "craft hemp".
Page 4, line 32, after "product" insert "containing THC
(tetrahydrocannabinol)".
Page 4, line 33, delete "craft".
Page 4, line 34, delete "hemp product" and insert "product
containing tetrahydrocannabinol (THC)".
Page 4, line 36, delete "craft hemp".
Page 4, line 36, after "product" insert "containing THC
ES 478—LS 6068/DI 120 92
(tetrahydrocannabinol)".
Page 5, line 4, delete "craft hemp product" and insert "a product
containing THC (tetrahydrocannabinol)".
Page 9, line 26, delete "IC 35-45-5-3, IC 35-45-5-3.5, IC 35-45-5-4,"
and insert "IC 7.1-8-5-2 or IC 7.1-8-8-2;".
Page 9, delete lines 27 through 28.
Page 9, line 30, delete "IC 35-46-1-10.2(j);" and insert "IC
7.1-8-8-2(g);".
Page 9, delete line 38.
Page 9, line 39, delete "IC 35-46-1-11.4, IC 35-46-1-11.5," and
insert "IC 7.1-8-5-2, IC 7.1-8-8-2, or".
Page 9, line 39, delete ", or".
Page 9, line 40, delete "IC 35-46-1-11.8".
Page 10, delete lines 13 through 16.
Page 10, line 17, delete "11." and insert "10.".
Page 10, line 18, delete "IC 35-46-1-10," and insert "IC 7.1-8-5-2,
IC 7.1-8-8-2,".
Page 10, delete line 19.
Page 10, line 20, delete "IC 35-46-1-11.5,".
Page 10, line 20, delete "IC 35-46-1-11.8,".
Page 10, line 31, delete "12." and insert "11.".
Page 10, line 35, delete "13." and insert "12.".
Page 11, line 27, delete "14." and insert "13.".
Page 11, line 28, delete "administrative law" and insert "hearing".
Page 11, line 32, delete "An administrative law" and insert "A
hearing".
Page 11, line 35, delete "15." and insert "14.".
Page 11, line 41, delete "16." and insert "15.".
Page 12, line 5, delete "Selling" and insert "Habitual illegal sale
of".
Page 12, line 12, delete "17." and insert "16.".
Page 12, between lines 20 and 21, begin a new paragraph and insert:
"Sec. 17. A permit holder may not give free samples of craft
hemp at a farmers' market.".
Page 16, line 18, delete "IC 35-45-5-3, IC 35-45-5-3.5,
IC 35-45-5-4," and insert "IC 7.1-8-5-2 or IC 7.1-8-8-2;".
Page 16, delete lines 19 through 20.
Page 16, line 22, delete "IC 35-46-1-10.2(j);" and insert "IC
7.1-8-8-2(g);".
Page 16, delete line 30.
Page 16, line 31, delete "IC 35-46-1-11.4, IC 35-46-1-11.5," and
insert "IC 7.1-8-5-2, IC 7.1-8-8-2, or".
ES 478—LS 6068/DI 120 93
Page 16, line 31, delete ", or".
Page 16, line 32, delete "IC 35-46-1-11.8".
Page 17, delete lines 4 through 7.
Page 17, line 8, delete "11." and insert "10.".
Page 17, line 9, delete "IC 35-46-1-10,".
Page 17, delete line 10.
Page 17, line 11, delete "IC 35-46-1-11.5," and insert "IC 7.1-8-5-2,
IC 7.1-8-8-2,".
Page 17, line 11, delete "IC 35-46-1-11.8,".
Page 17, line 15, delete "12." and insert "11.".
Page 17, line 18, delete "13." and insert "12.".
Page 18, line 10, delete "14." and insert "13.".
Page 18, line 11, delete "administrative law" and insert "hearing".
Page 18, line 15, delete "An administrative law" and insert "A
hearing".
Page 18, line 18, delete "15." and insert "14.".
Page 22, line 4, delete "IC 35-45-5-3, IC 35-45-5-3.5, IC 35-45-5-4,"
and insert "IC 7.1-8-5-2 or IC 7.1-8-8-2;".
Page 22, delete lines 5 through 6.
Page 22, line 8, delete "IC 35-46-1-10.2(j);" and insert "IC
7.1-8-8-2(g);".
Page 22, delete lines 32 through 35.
Page 22, line 36, delete "11." and insert "10.".
Page 22, line 37, delete "IC 35-46-1-10," and insert "IC 7.1-8-5-2,
IC 7.1-8-8-2,".
Page 22, delete line 38.
Page 22, line 39, delete "IC 35-46-1-11.5,".
Page 22, line 39, delete "IC 35-46-1-11.8,".
Page 23, line 1, delete "12." and insert "11.".
Page 23, line 4, delete "13." and insert "12.".
Page 23, line 38, delete "14." and insert "13.".
Page 23, line 39, delete "administrative law" and insert "hearing".
Page 24, line 1, delete "An administrative law" and insert "A
hearing".
Page 24, line 4, delete "15." and insert "14.".
Page 24, line 22, after "the" insert "service of beverages that
contain craft hemp by the".
Page 25, delete lines 5 through 42, begin a new paragraph and
insert:
"Sec. 1. (a) The commission shall have the power to regulate and
prohibit advertising, signs, displays, posters, and designs intended
to advertise craft hemp or the place where craft hemp is sold.
ES 478—LS 6068/DI 120 94
(b) The commission shall not exercise the prohibition power
contained in subsection (a) for any advertisement appearing in a
newspaper which:
(1) is published at least once a week;
(2) regularly publishes information of current news interest
to the community; and
(3) circulates generally to the public in any part of Indiana,
regardless of where printed.
However, a newspaper shall not include publications devoted to
special interests such as labor, religious, fraternal, society, or trade
publications or journals or publications owned or issued by
political organizations or parties.
(c) The commission shall not exercise the prohibition power
contained in subsection (a) for any advertisement broadcast over
duly licensed radio and television stations.
(d) All advertisements relating to craft hemp, whether published
in a newspaper or broadcast over radio or television, shall conform
to the rules and regulations of the commission.
(e) The commission shall not exercise the prohibition power
contained in subsection (a) for advertising in the official program
of the Indianapolis 500 Race or the Madison Regatta, Inc.,
Hydroplane Race.
(f) Notwithstanding any other law, the commission may not
prohibit the use of an illuminated sign advertising craft hemp by
brand name that is displayed within the interior or on the exterior
of the premises covered by the permit, regardless of whether the
sign is illuminated constantly or intermittently. However, it is
unlawful for a craft hemp distributor permit holder to sell, give,
supply, furnish, or grant to, or maintain for a retail craft hemp
permit holder, an illuminated advertising sign in a manner that
violates the trade practice restrictions of the commission or this
title. It is unlawful for a retail craft hemp permit holder to receive,
accept, display, or permit to be displayed, an illuminated
advertising sign sold, given, supplied, furnished, granted, or
maintained in violation of this subsection. Unless otherwise stated,
when a recipient receives an illuminated advertising sign, the
illuminated advertising sign becomes the property and
responsibility of the recipient.
(g) The commission may not prohibit the advertisement of:
(1) craft hemp; or
(2) a place where craft hemp may be obtained;
in a program, scorecard, handbill, throw-away newspaper, or
ES 478—LS 6068/DI 120 95
menu. However, those advertisements must conform to the rules of
the commission.
(h) The commission shall prohibit a retail craft hemp permit
holder from making:
(1) a false advertisement;
(2) a misleading advertisement;
(3) a deceptive statement in an advertisement;
(4) an unsubstantiated health claim about a product that is
not consistent with the product's labeling; or
(5) a statement that disparages a competitor.
(i) The commission shall prohibit a retail craft hemp permit
holder from placing a physical advertisement within five hundred
(500) feet of:
(1) a school;
(2) a playground;
(3) a church; and
(4) other locations that the commission determines could
contain minors.".
Page 26, delete line 1.
Page 26, line 2, delete "9." and insert "2.".
Page 26, line 20, delete "Sec. 10. (a)" and insert "Sec. 3. (a)".
Page 26, between lines 27 and 28, begin a new paragraph and insert:
"(c) A permittee may only send electronic mail advertising its
business if the recipient has affirmatively opted-in to receive
electronic mail from the permittee.".
Page 26, line 28, delete "(c)" and insert "(d)".
Page 26, line 32, delete "11." and insert "4.".
Page 26, delete line 33.
Page 26, line 34, delete "(2)" and insert "(1)".
Page 26, line 39, delete "(3)" and insert "(2)".
Page 27, line 1, delete "product." and insert "as defined in
IC 7.1-8-1-1.".
Page 27, line 18, after "hemp" insert "or a product containing
THC (tetrahydrocannabinol)".
Page 29, line 34, delete "or".
Page 29, line 36, delete "." and insert "; or
(3) craft hemp manufacturer permit holder, as described in
IC 7.1-8-4.".
Page 38, line 3, after "(0.3%) of" insert "delta-9".
Page 38, line 4, delete ", including precursors of THC,".
Page 38, line 14, delete "than" and insert "than:
(A)"
ES 478—LS 6068/DI 120 96
Page 38, line 15, delete "delta-8, delta-9, delta-10, or
hexahydrocannabinol" and insert "delta-9 tetrahydrocannabinol
(THC); and
(B) two hundred sixty-three thousandths percent (0.263%)
of tetrahydrocannabinolic acid (THCA);
by weight or volume;".
Page 38, delete line 16.
Page 38, line 20, after "THC" insert ", delta-8
tetrahydrocannabinol, delta-10 tetrahydrocannabinol, or
hexahydrocannabinol".
Page 38, line 21, after "THC" insert ", delta-8
tetrahydrocannabinol, delta-10 tetrahydrocannabinol, or
hexahydrocannabinol".
Page 38, line 23, after "THC" insert ", delta-8
tetrahydrocannabinol, delta-10 tetrahydrocannabinol, or
hexahydrocannabinol".
Page 38, line 24, after "THC" insert ", delta-8
tetrahydrocannabinol, delta-10 tetrahydrocannabinol, or
hexahydrocannabinol".
Page 38, line 26, delete "twenty-five (25)" and insert "ten (10)".
Page 38, line 27, after "THC" insert ", delta-8
tetrahydrocannabinol, delta-10 tetrahydrocannabinol, or
hexahydrocannabinol".
Page 38, line 28, delete "six hundred (600)" and insert "two
hundred forty (240)".
Page 38, line 30, after "THC" insert ", delta-8
tetrahydrocannabinol, delta-10 tetrahydrocannabinol, or
hexahydrocannabinol".
Page 38, line 31, after "THC" insert ", delta-8
tetrahydrocannabinol, delta-10 tetrahydrocannabinol, or
hexahydrocannabinol".
Page 38, line 31, delete "or".
Page 38, line 33, after "THC" insert ", delta-8
tetrahydrocannabinol, delta-10 tetrahydrocannabinol, or
hexahydrocannabinol".
Page 38, line 33, delete "." and insert "; or
(F) a topical not for human consumption.".
Page 38, delete lines 38 through 42.
Delete pages 39 through 42.
Page 43, delete lines 1 through 21.
Page 47, delete lines 13 through 31, begin a new paragraph and
insert:
ES 478—LS 6068/DI 120 97
"SECTION 42. IC 35-48-1-26.6, AS ADDED BY P.L.190-2019,
SECTION 30, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 26.6. (a) Except as provided in subsection (b),
"smokable hemp" means a product, plant, or part of a plant
containing THC (tetrahydrocannabinol), not more than three-tenths
percent (0.3%) delta-9-tetrahydrocannabinol (THC), including
precursors and derivatives of THC, in a form that allows THC to be
introduced into the human body by inhalation of smoke. Except as
provided in subsection (b), the term includes craft hemp flower.
(1) hemp bud; and
(2) hemp flower.
(b) The term does not include a craft hemp flower product (as
defined by IC 35-31.5-2-68.9), or:
(1) a hemp plant that is; or
(2) parts of a hemp plant that are; or
(3) craft hemp flower that is;
grown or handled by a licensee for processing or manufacturing into a
legal hemp product, including a craft hemp flower product.".
Page 48, between lines 6 and 7, begin a new paragraph and insert:
"SECTION 43. IC 35-52-6-56.3 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2026]: Sec. 56.3. IC 6-7-5-8 defines a
crime concerning the craft hemp flower product excise tax.
SECTION 44. IC 35-52-6-56.4 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2026]: Sec. 56.4. IC 6-7-5-9 defines a
crime concerning the craft hemp flower product excise tax.".
Page 48, between lines 15 and 16, begin a new paragraph and insert:
"SECTION 73. [EFFECTIVE JANUARY 1, 2026] (a) IC 6-7-5, as
added by this act, applies only to retail transactions occurring after
December 31, 2025.
(b) Except as provided in subsection (c), a retail transaction is
considered to have occurred after December 31, 2025, if the
property whose transfer constitutes selling at retail is delivered to
the purchaser or to the place of delivery designated by the
purchaser after December 31, 2025.
(c) Notwithstanding the delivery of the property constituting
selling at retail after December 31, 2025, a transaction is
considered to have occurred before January 1, 2026, to the extent
that:
(1) the agreement of the parties to the transaction is entered
into before January 1, 2026; and
ES 478—LS 6068/DI 120 98
(2) payment for the property furnished in the transaction is
made before January 1, 2026.
(d) This SECTION expires January 1, 2028.".
Renumber all SECTIONS consecutively.
and when so amended that said bill do pass.
(Reference is to ESB 478 as printed March 20, 2025.)
THOMPSON
Committee Vote: yeas 20, nays 2.
ES 478—LS 6068/DI 120