Indiana Senate Bill SB0478 Engrossed / Bill

                    *ES0478.5*
Reprinted
April 15, 2025
ENGROSSED
SENATE BILL No. 478
_____
DIGEST OF SB 478 (Updated April 14, 2025 5:00 pm - DI 107)
Citations Affected: IC 7.1-2; IC 7.1-3; IC 7.1-5; IC 7.1-7; IC 7.1-8;
IC 9-13; IC 15-15; IC 16-42; IC 24-4; IC 34-30; IC 35-31.5; IC 35-46;
IC 35-48; IC 35-52.
Synopsis: Craft hemp flower and THC products. Establishes certain
regulatory testing and packaging requirements for the distribution and
sale of craft hemp flower products. 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
(Continued next page)
Effective:  July 1, 2020 (retroactive); July 1, 2025.
Holdman, Garten, Baldwin, Bassler,
Walker K, Pol Jr., Clark, Donato,
Hunley, Ford J.D., Doriot, Alting,
Randolph Lonnie M, Busch, Yoder
(HOUSE SPONSORS — TESHKA, CASH, BARTELS, GORE)
January 16, 2025, read first time and referred to Committee on Commerce and Technology.
February 6, 2025, amended, reported favorably — Do Pass; reassigned to Committee on
Tax and Fiscal Policy.
February 11, 2025, amended, reported favorably — Do Pass.
February 13, 2025, read second time, amended, ordered engrossed.
February 14, 2025, engrossed.
February 20, 2025, read third time, passed. Yeas 40, nays 9.
HOUSE ACTION
March 3, 2025, read first time and referred to Committee on Commerce, Small Business
and Economic Development.
March 20, 2025, amended, reported — Do Pass. Referred to Committee on Ways and
Means pursuant to Rule 126.3.
April 3, 2025, amended, reported — Do Pass. Referred to Committee on Courts and
Criminal Code pursuant to Rule 126.3.
April 9, 2025, amended, reported — Do Pass.
April 14, 2025, read second time, amended, ordered engrossed.
ES 478—LS 6068/DI 120 Digest Continued
is not included in the definition of "controlled substance analog",
"hashish", "low THC hemp extract", or "marijuana". Prohibits the sale
of specified products to a person less than 21 years of age. Establishes
a regulatory framework for craft hemp, including the regulation of
advertising. Caps the number of craft hemp retail permits at 20,000.
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. Modifies 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. 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 Reprinted
April 15, 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 7.1-2-3-33, AS AMENDED BY P.L.49-2020,
2 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3 JULY 1, 2025]: Sec. 33. The commission is authorized to:
4 (1) investigate a violation of; and
5 (2) enforce a penalty for a violation of;
6 IC 35-46-1-10, IC 35-46-1-10.2, IC 35-46-1-11, IC 35-46-1-11.2,
7 IC 35-46-1-11.4, IC 35-46-1-11.5, IC 35-46-1-11.7, or IC 35-46-1-11.8,
8 or IC 7.1-8.
9 SECTION 2. IC 7.1-3-18.5-5, AS AMENDED BY P.L.49-2020,
10 SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
11 JULY 1, 2025]: Sec. 5. (a) Subject to subsection (b), the commission
12 may suspend the certificate of a person who fails to pay a civil penalty
13 imposed for violating IC 35-46-1-10, IC 35-46-1-10.2, IC 35-46-1-11,
14 IC 35-46-1-11.2, IC 35-46-1-11.4, IC 35-46-1-11.5, IC 35-46-1-11.7,
15 or IC 35-46-1-11.8.
16 (b) Before enforcing the imposition of a civil penalty or suspending
17 or revoking a certificate under this chapter, the commission shall
ES 478—LS 6068/DI 120 2
1 provide written notice of the alleged violation to the certificate holder
2 and conduct a hearing. The commission shall provide written notice of
3 the civil penalty or suspension or revocation of a certificate to the
4 certificate holder.
5 (c) Subject to subsection (b), the commission shall revoke the
6 certificate of a person upon a finding by a preponderance of the
7 evidence that the person:
8 (1) has violated IC 35-45-5-3, IC 35-45-5-3.5, IC 35-45-5-4,
9 IC 35-46-1-11, IC 35-46-1-11.2, IC 35-46-1-11.4, or
10 IC 35-46-1-11.8;
11 (2) has committed habitual illegal sale of tobacco sales as
12 established under IC 35-46-1-10.2(j); or
13 (3) has committed habitual illegal entrance by a minor as
14 established under IC 35-46-1-11.7(f).
15 SECTION 3. IC 7.1-5-7-18 IS ADDED TO THE INDIANA CODE
16 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
17 1, 2025]: Sec. 18. (a) A law enforcement officer vested with full
18 police powers and duties may engage an individual who is:
19 (1) at least sixteen (16) years of age; and
20 (2) less than twenty-one (21) years of age;
21 to receive or purchase craft hemp, a product that contains low
22 THC hemp extract, or a product that contains craft hemp, as part
23 of an enforcement under this article.
24 (b) The initial or contemporaneous receipt or purchase of craft
25 hemp flower product, a product that contains low THC hemp
26 extract, or a product that contains craft hemp may only:
27 (1) occur under the direction of a law enforcement officer
28 vested with full police powers and duties; and
29 (2) be part of an enforcement action.
30 SECTION 4. IC 7.1-5-10-15, AS AMENDED BY P.L.159-2014,
31 SECTION 80, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
32 JULY 1, 2025]: Sec. 15. (a) A person who, knowing that another
33 person is intoxicated, sells, barters, delivers, or gives away an alcoholic
34 beverage or a product containing THC (tetrahydrocannabinol) to
35 the intoxicated person commits a Class B misdemeanor.
36 (b) In any civil proceeding in which damages are sought from a
37 permittee or a permittee's agent for the refusal to serve a person an
38 alcoholic beverage or a product containing THC
39 (tetrahydrocannabinol), it is a complete defense if the permittee or
40 agent reasonably believed that the person was intoxicated or was
41 otherwise not entitled to be served an alcoholic beverage or a product
42 containing THC (tetrahydrocannabinol).
ES 478—LS 6068/DI 120 3
1 (c) After charges have been filed against a person for a violation of
2 subsection (a), the prosecuting attorney shall notify the commission of
3 the charges filed.
4 SECTION 5. IC 7.1-5-10-15.5 IS AMENDED TO READ AS
5 FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 15.5. (a) As used in this
6 section, "furnish" includes barter, deliver, sell, exchange, provide, or
7 give away.
8 (b) A person who furnishes an alcoholic beverage or a product
9 containing THC (tetrahydrocannabinol) to a person is not liable in
10 a civil action for damages caused by the impairment or intoxication of
11 the person who was furnished the alcoholic beverage unless:
12 (1) the person furnishing the alcoholic beverage or product
13 containing THC (tetrahydrocannabinol) had actual knowledge
14 that the person to whom the alcoholic beverage or product
15 containing THC (tetrahydrocannabinol) was furnished was
16 visibly intoxicated at the time the alcoholic beverage or product
17 containing tetrahydrocannabinol (THC) was furnished; and
18 (2) the intoxication of the person to whom the alcoholic beverage
19 or product containing THC (tetrahydrocannabinol) was
20 furnished was a proximate cause of the death, injury, or damage
21 alleged in the complaint.
22 (c) If a person who is at least twenty-one (21) years of age suffers
23 injury or death proximately caused by the person's voluntary
24 intoxication, the:
25 (1) person;
26 (2) person's dependents;
27 (3) person's personal representative; or
28 (4) person's heirs;
29 may not assert a claim for damages for personal injury or death against
30 a person who furnished an alcoholic beverage or a product containing
31 THC (tetrahydrocannabinol) that contributed to the person's
32 intoxication, unless subsections (b)(1) and (b)(2) apply.
33 SECTION 6. IC 7.1-7-2-10, AS AMENDED BY P.L.206-2017,
34 SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
35 JULY 1, 2020 (RETROACTIVE)]: Sec. 10. (a) "E-liquid" means a
36 substance that:
37 (1) may or may not contain nicotine; and
38 (2) is intended to be vaporized and inhaled using a vapor product.
39 (b) This subsection applies before July 1, 2025. The term does
40 not include a craft hemp flower product as defined in
41 IC 35-31.5-2-68.9.
42 (c) This subsection applies after June 30, 2025. The term does
ES 478—LS 6068/DI 120 4
1 not include:
2 (1) a craft hemp flower product as defined in
3 IC 35-31.5-2-68.9; and
4 (2) low THC hemp extract as defined in IC 35-48-1-17.5.
5 SECTION 7. IC 7.1-8 IS ADDED TO THE INDIANA CODE AS A
6 NEW ARTICLE TO READ AS FOLLOWS [EFFECTIVE JULY 1,
7 2025]:
8 ARTICLE 8. CRAFT HEMP
9 Chapter 0.5. Application
10 Sec. 1. Notwithstanding any other law, a retailer, distributor,
11 manufacturer, or out-of-state supplier, who was in operation
12 before January 1, 2025, may continue to operate without a permit
13 issued under this article until December 31, 2025, if the retailer,
14 distributor, or manufacturer applies for a permit to sell, distribute,
15 or manufacture craft hemp by December 31, 2025.
16 Chapter 1. Definitions
17 Sec. 1. As used in this article, "convenience store" means a retail
18 establishment that:
19 (1) has a retail premises that is less than three thousand five
20 hundred (3,500) square feet; and
21 (2) sells prepackaged food, snacks, and beverages, and which
22 may sell gasoline or automotive products.
23 The term does not include a drug store.
24 Sec. 2. As used in this article, "craft hemp" means craft hemp
25 flower product, craft hemp flower, or low THC hemp extract.
26 Sec. 3. As used in this article, "craft hemp flower" has the
27 meaning set forth in IC 35-31.5-2-68.8.
28 Sec. 4. 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. 5. As used in this article, "drug store" has the meaning set
31 forth in IC 7.1-1-3-15.
32 Sec. 6. As used in this article, "low THC hemp extract" has the
33 meaning set forth in IC 35-48-1-17.5.
34 Sec. 7. As used in this article, "restricted grocery store" means
35 a retail establishment that:
36 (1) is primarily engaged in the retail sale of a general food line
37 that includes:
38 (A) canned and frozen foods;
39 (B) fresh fruits and vegetables;
40 (C) fresh and prepared meat, fish, and poultry;
41 (D) groceries or gourmet foods in combination with
42 general lines of new merchandise, including apparel,
ES 478—LS 6068/DI 120 5
1 furniture, and appliances; or
2 (E) specialty or gourmet foods; and
3 (2) has a retail premises that is at least three thousand five
4 hundred (3,500) square feet.
5 Chapter 1.5. Craft Hemp Permits
6 Sec. 1. (a) The holder of a permit issued under this article shall
7 keep and maintain all invoices of craft hemp that is purchased or
8 acquired. Each invoice must contain the following information:
9 (1) The permit numbers of each party in a transaction.
10 (2) The transaction date or dates.
11 (3) The expiration date or dates of the permit holder's permit
12 or permits.
13 (4) Each permit holder's address.
14 (b) The holder of a permit issued under this article must:
15 (1) keep the invoices described in subsection (a) on the permit
16 holder's premises; and
17 (2) make the invoices described in subsection (a) available for
18 inspection by the commission.
19 Chapter 2. Craft Hemp Retail Permits
20 Sec. 1. (a) A person may not sell or otherwise distribute in
21 exchange for consideration craft hemp directly to a consumer for
22 consumption off the permitted premises without a valid retail craft
23 hemp permit issued by the commission.
24 (b) The commission may issue not more than twenty thousand
25 (20,000) retail permits.
26 (c) The commission may issue a restricted retail permit to a
27 drug store or restricted grocery store authorizing the sale of one
28 (1) or more of the following:
29 (1) A product containing not more than three-tenths of one
30 percent (0.3%) total tetrahydrocannabinol (THC).
31 (2) A beverage described in IC 35-31.5-2-68.9(a)(4)(C).
32 (d) The commission may issue a retail permit to a convenience
33 store.
34 (e) A permit may be issued only to a person who owns or
35 operates premises consisting of a permanent building or structure
36 where the craft hemp is sold or distributed.
37 (f) A retail permit holder may only purchase craft hemp from
38 a manufacturer or distributor that holds the appropriate permits.
39 (g) A person who is a craft hemp retail permit holder and a
40 retail alcoholic beverage permit holder may serve craft hemp
41 beverages in the original container for consumption on the
42 permitted premises.
ES 478—LS 6068/DI 120 6
1 Sec. 2. (a) A person who desires a permit must provide the
2 following to the commission:
3 (1) The applicant's name and mailing address and the address
4 of the premises for which the permit is being issued.
5 (2) A fee of one thousand dollars ($1,000) for each retail
6 location.
7 (3) The name under which the applicant transacts or intends
8 to transact business.
9 (4) The address of the applicant's principal place of business
10 or headquarters, if any.
11 (5) The statement required under section 4 of this chapter.
12 (6) If the applicant is applying for a new permit under section
13 6 of this chapter, a copy of each of the following:
14 (A) If the new ownership of the business is a business
15 entity, the articles of incorporation, articles of
16 organization, or any other formation documents of the
17 business entity.
18 (B) If the new ownership of the business is an individual,
19 either:
20 (i) the sales or purchase agreement; or
21 (ii) an affidavit signed by the applicant concerning the
22 sale or purchase, on a form prescribed by the
23 commission, that includes the name and address of the
24 seller and purchaser.
25 (C) The permit held by the previous ownership of the
26 business.
27 (b) A separate permit is required for each location where the
28 craft hemp products or craft hemp flower products are sold or
29 distributed. A retail establishment may not hold more than one (1)
30 active craft hemp retail permit for a retail location at any time.
31 (c) A permit holder shall conspicuously display the holder's
32 permit on the holder's premises where the craft hemp is sold or
33 distributed.
34 (d) Any intentional misstatement or suppression of a material
35 fact in an application filed under this section constitutes grounds
36 for denial of the permit.
37 (e) A permit may be issued only to a person who meets the
38 following requirements:
39 (1) If the person is an individual, the person must be at least
40 twenty-one (21) years of age.
41 (2) The person must be authorized to do business in Indiana.
42 (3) The person has not had an interest in a permit revoked by
ES 478—LS 6068/DI 120 7
1 the commission for that business location within the preceding
2 one (1) year.
3 (f) The fees collected under this section shall be deposited in the
4 enforcement and administration fund under IC 7.1-4-10.
5 Sec. 3. (a) Subject to available resources, the commission shall
6 not issue a craft hemp retail permit, except as otherwise authorized
7 in this title and subject to the other restrictions contained in this
8 title, to the following persons:
9 (1) A person who does not have lawful status (as defined in
10 IC 9-13-2-92.3).
11 (2) A person who has been convicted within five (5) years
12 before the date of application of:
13 (A) a federal crime having a sentence of at least one (1)
14 year;
15 (B) a Level 1, Level 2, Level 3, Level 4, or Level 5 felony;
16 or
17 (C) a crime in a state other than Indiana having a penalty
18 equal to the penalty for an Indiana Level 1, Level 2, Level
19 3, Level 4, or Level 5 felony.
20 However, this subdivision does not apply to a conviction that
21 has been expunged under IC 35-38-9.
22 (3) A person who does not meet at least one (1) of the
23 following descriptions:
24 (A) The person owns the premises to which the permit will
25 be applicable.
26 (B) The person has a valid lease on the premises:
27 (i) at the time of the application for a permit; and
28 (ii) for the duration of the period in which the person
29 sells or distributes in the manner described in section 1
30 of this chapter.
31 (C) The person has a franchise agreement with a
32 franchisor:
33 (i) that owns the premises to which the permit will be
34 applicable; or
35 (ii) that has a bona fide lease on the premises for the full
36 period for which the permit is to be issued.
37 (4) A person whose place of business is conducted by a
38 manager or agent, unless the manager or agent possesses the
39 same qualifications required for the issuance of a craft hemp
40 retail permit to the person.
41 (5) A minor.
42 (6) A person non compos mentis.
ES 478—LS 6068/DI 120 8
1 (7) A person who has held a permit under this article or
2 permit under this title and who has had that permit under this
3 article or this title, as applicable, revoked within one (1) year
4 prior to the date of application for a craft hemp retail permit.
5 (8) A person who has made an application for a permit under
6 this article or permit of any type under this title that has been
7 denied less than one (1) year prior to the person's application
8 for a craft hemp retail permit unless the first application was
9 denied by reason of a procedural or technical defect.
10 (b) Subsection (a)(5) does not prevent a minor from being a
11 stockholder in a corporation.
12 Sec. 4. An application for a craft hemp retail permit must
13 contain the express statement of the applicant that the applicant
14 consents for the duration of the permit term (if the commission
15 issues the permit to the applicant) to the entrance, inspection, and
16 search by an enforcement officer, without a warrant or other
17 process, of the applicant's retail premises to determine whether the
18 applicant is complying with the provisions of this title. The consent
19 required by this section is renewed and continued by the retention
20 of a permit or the permit's use by the applicant or the applicant's
21 agents.
22 Sec. 5. (a) A permit issued by the commission under this chapter
23 must contain the following information:
24 (1) The permit number.
25 (2) The permit holder's name.
26 (3) The permanent location of the business for which the
27 permit is issued.
28 (4) The expiration date of the permit.
29 (b) A permit is:
30 (1) valid for two (2) years after the date of issuance, unless the
31 commission suspends the permit; and
32 (2) nontransferable.
33 (c) A permit may be renewed. The fee for renewing a permit is
34 one thousand dollars ($1,000) for each retail location.
35 Sec. 6. If the majority of the ownership of a business that is a
36 permit holder is sold or transferred:
37 (1) the new ownership of the business must apply for a new
38 permit under section 2 of this chapter; and
39 (2) the permit and the permit number held by the previous
40 ownership of the business are void ninety (90) days after the
41 date of the sale or transfer of the ownership of the business.
42 Sec. 7. The commission may adopt rules under IC 4-22-2 to
ES 478—LS 6068/DI 120 9
1 establish procedures for the issuance, renewal, and reinstatement
2 of a permit.
3 Sec. 8. (a) Subject to subsection (b), the commission may
4 suspend the permit of a person who fails to pay a civil penalty
5 imposed by the commission.
6 (b) Before enforcing the imposition of a civil penalty or
7 suspending or revoking a permit under this chapter, the
8 commission shall provide written notice of the alleged violation to
9 the permit holder and conduct a hearing. The commission shall
10 provide written notice of the civil penalty or suspension or
11 revocation of a permit to the permit holder.
12 (c) Subject to subsection (b), the commission shall revoke the
13 permit of a person upon a finding by a preponderance of the
14 evidence that the person:
15 (1) has violated IC 7.1-8-5-2 or IC 7.1-8-8-2;
16 (2) has committed habitual illegal sale of craft hemp as
17 established under IC 7.1-8-8-2(g); or
18 (3) has committed habitual illegal entrance by a minor as
19 established under IC 35-46-1-11.7(f).
20 Sec. 9. (a) If a permit has:
21 (1) expired; or
22 (2) been suspended;
23 the commission may not reinstate or renew the permit until all civil
24 penalties imposed against the permit holder for violating
25 IC 7.1-8-5-2, IC 7.1-8-8-2, or IC 35-46-1-11.7 have been paid.
26 (b) The failure to pay a civil penalty described in subsection (a)
27 is a Class B infraction.
28 (c) If a permit has been revoked, the commission may not
29 reinstate or renew the permit for at least one hundred eighty (180)
30 days after the date of revocation. The commission may reinstate or
31 renew the permit only upon a reasonable showing by the applicant
32 that the applicant shall:
33 (1) exercise due diligence in the sale of craft hemp on the
34 applicant's premises where the craft hemp is sold or
35 distributed; and
36 (2) properly supervise and train the applicant's employees or
37 agents in the handling and sale of craft hemp.
38 If a permit is reinstated or renewed, the applicant of the permit
39 shall pay an application fee of one thousand dollars ($1,000).
40 Sec. 10. The commission may mitigate civil penalties imposed
41 against a permit holder for violating IC 7.1-8-5-2, IC 7.1-8-8-2,
42 IC 35-46-1-11.7, or any of the provisions of this chapter if a permit
ES 478—LS 6068/DI 120 10
1 holder provides a training program for the permit holder's
2 employees that includes at least the following topics:
3 (1) Laws governing the sale of craft hemp flower products and
4 craft hemp flower.
5 (2) Methods of recognizing and handling customers who are
6 less than twenty-one (21) years of age.
7 (3) Procedures for proper examination of identification cards
8 to verify that customers are less than twenty-one (21) years of
9 age.
10 Sec. 11. A permit holder shall exercise due diligence in the
11 supervision and training of the permit holder's employees or agents
12 in the handling and sale of craft hemp flower products and craft
13 hemp flower on the holder's retail premises.
14 Sec. 12. (a) An employee of a permit holder must hold a valid:
15 (1) driver's license issued by the state of Indiana or another
16 state; or
17 (2) identification card issued by the state of Indiana, another
18 state, or the United States;
19 to sell craft hemp flower products.
20 (b) An employee must have the employee's driver's license or
21 identification card or a copy of the employee's driver's license or
22 identification card:
23 (1) either:
24 (A) in the employee's possession; or
25 (B) on file with the employee's employer; and
26 (2) upon request, readily available to show to an excise officer
27 or law enforcement officer;
28 when selling craft hemp flower products.
29 (c) If an employee holds a valid license or identification card as
30 described in subsection (a) but is unable to show the license,
31 identification card, or a copy to an excise officer under subsection
32 (b) because:
33 (1) the employee has left the license, identification card, or
34 copy in another location; or
35 (2) the license, identification card, or copy has otherwise been
36 lost or mislaid;
37 the employee may, within five (5) days of the employee's inability
38 to show the license, identification card, or copy to the excise officer,
39 produce to the excise officer or to the office of the commission
40 satisfactory evidence of a license or identification card issued to the
41 employee that was valid at the time the employee was unable to
42 show the license, identification card, or copy.
ES 478—LS 6068/DI 120 11
1 (d) If an employee who is unable to show a license, identification
2 card, or copy to an excise officer fails to produce satisfactory
3 evidence within five (5) days in the manner described in subsection
4 (c), the commission may impose a civil penalty on the permit
5 holder.
6 Sec. 13. (a) If a permit holder fails to attend or participate in a
7 hearing without good cause, the hearing judge may recommend to
8 the commission that the commission suspend or revoke the permit
9 holder's permit or impose a fine on the permit holder of up to one
10 thousand dollars ($1,000).
11 (b) A hearing judge may grant a continuance of a hearing upon
12 written motion showing good cause for the continuance.
13 Sec. 14. If a permit holder sells or distributes craft hemp at a
14 location:
15 (1) determined to be a public nuisance; or
16 (2) at which conduct or acts that are crimes or infractions
17 under IC 35 occur;
18 the commission may impose sanctions against the permit holder.
19 Sec. 15. This section applies to a person holding a tobacco sales
20 certificate. A person holding a tobacco sales certificate may not be
21 issued a craft hemp retail permit if the person has received a
22 violation within the previous three (3) years for any of the
23 following:
24 (1) Violating IC 7.1-3-18.5-11 (public nuisance).
25 (2) Habitual illegal sale of tobacco to a person less than
26 twenty-one (21) years of age (IC 35-46-1-10.2).
27 (3) Allowing a minor to enter a licensed premises
28 (IC 35-46-1-11.7).
29 (4) Selling e-liquid containing vitamin E acetate
30 (IC 35-46-1-11.9).
31 (5) Dealing in paraphernalia (IC 35-48-4-8.5).
32 Sec. 16. (a) A retail location may not sell craft hemp flower
33 products if the retail location is within one thousand (1,000) feet of
34 a private school, public school, or charter school that includes any
35 grade from kindergarten through grade 12.
36 (b) If a retailer provides the commission with documentation
37 that establishes that craft hemp flower products were offered for
38 sale at a retail location before January 1, 2025, the retail location
39 may sell craft hemp flower products even if it is within one
40 thousand (1,000) feet of a school.
41 Sec. 17. A permit holder may not give free samples of craft
42 hemp at a farmers' market.
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1 Chapter 3. Craft Hemp Distributor Permits
2 Sec. 1. (a) A person may not distribute craft hemp to a retailer
3 without a valid craft hemp distributor permit issued by the
4 commission. A craft hemp distributor permit holder may sell craft
5 hemp to a craft hemp retail permit holder.
6 (b) A craft hemp distributor permit does not authorize a person
7 to sell craft hemp products directly to a consumer.
8 (c) A craft hemp distributor permit holder must purchase craft
9 hemp from a craft hemp manufacturer permit holder or from an
10 out-of-state craft hemp supplier permit holder.
11 (d) A permit may be issued only to a person who owns or
12 operates premises consisting of a permanent building or structure
13 from which the craft hemp is distributed.
14 Sec. 1.5. (a) A person located outside of Indiana may not
15 distribute craft hemp to a person located within Indiana without
16 a valid out-of-state craft hemp supplier permit issued by the
17 commission under subsection (b).
18 (b) The commission may issue an out-of-state craft hemp
19 supplier permit based on the factors set forth in section 2 of this
20 chapter.
21 (c) An out-of-state craft hemp supplier permit holder may sell
22 craft hemp directly to a consumer if the consumer is at least
23 twenty-one (21) years of age and located within Indiana at the time
24 of the sale and delivery.
25 (d) A parcel in which craft hemp is mailed to an Indiana
26 purchaser must be marked as follows: "CONTAINS CRAFT
27 HEMP. NOT FOR DELIVERY TO A PERSON UNDER THE
28 AGE OF 21.".
29 Sec. 2. (a) A person who desires a permit under this chapter
30 must provide the following to the commission:
31 (1) The applicant's name and mailing address and the address
32 of the premises for which the permit is being issued.
33 (2) A fee of five thousand dollars ($5,000).
34 (3) The name under which the applicant transacts or intends
35 to transact business.
36 (4) The address of the applicant's principal place of business
37 or headquarters, if any.
38 (5) The statement required under section 4 of this chapter.
39 (6) If the applicant is applying for a new permit under section
40 6 of this chapter, a copy of each of the following:
41 (A) If the new ownership of the business is a business
42 entity, the articles of incorporation, articles of
ES 478—LS 6068/DI 120 13
1 organization, or any other formation documents of the
2 business entity.
3 (B) If the new ownership of the business is an individual,
4 either:
5 (i) the sales or purchase agreement; or
6 (ii) an affidavit signed by the applicant concerning the
7 sale or purchase, on a form prescribed by the
8 commission, that includes the name and address of the
9 seller and purchaser.
10 (C) The permit held by the previous ownership of the
11 business.
12 (b) A separate permit is required for each location from which
13 the craft hemp is distributed.
14 (c) A permit holder shall conspicuously display the holder's
15 permit on the holder's premises where the craft hemp is
16 distributed, and in any vehicle used for the transportation of craft
17 hemp.
18 (d) Any intentional misstatement or suppression of a material
19 fact in an application filed under this section constitutes grounds
20 for denial of the permit.
21 (e) A permit may be issued only to a person who meets the
22 following requirements:
23 (1) If the person is an individual, the person must be at least
24 twenty-one (21) years of age.
25 (2) The person must be authorized to do business in Indiana.
26 (3) The person has not had an interest in a permit revoked by
27 the commission for that business location within the preceding
28 one (1) year.
29 (f) The fees collected under this section shall be deposited in the
30 enforcement and administration fund under IC 7.1-4-10.
31 Sec. 3. (a) Subject to available resources, the commission shall
32 not issue a craft hemp distributor permit, except as otherwise
33 authorized in this title and subject to the other restrictions
34 contained in this title, to the following persons:
35 (1) A person who does not have lawful status (as defined in
36 IC 9-13-2-92.3).
37 (2) A person who has been convicted within five (5) years
38 before the date of application of:
39 (A) a federal crime having a sentence of at least one (1)
40 year;
41 (B) a Level 1, Level 2, Level 3, Level 4, or Level 5 felony;
42 or
ES 478—LS 6068/DI 120 14
1 (C) a crime in a state other than Indiana having a penalty
2 equal to the penalty for an Indiana Level 1, Level 2, Level
3 3, Level 4, or Level 5 felony.
4 However, this subdivision does not apply to a conviction that
5 has been expunged under IC 35-38-9.
6 (3) A person who does not meet at least one (1) of the
7 following descriptions:
8 (A) The person owns the premises to which the permit will
9 be applicable.
10 (B) The person has a valid lease on the premises:
11 (i) at the time of the application for a permit; and
12 (ii) for the duration of the period in which the person
13 sells or distributes in the manner described in section 1
14 of this chapter.
15 (C) The person has a franchise agreement with a
16 franchisor:
17 (i) that owns the premises to which the permit will be
18 applicable; or
19 (ii) that has a bona fide lease on the premises for the full
20 period for which the permit is to be issued.
21 (4) A person whose place of business is conducted by a
22 manager or agent, unless the manager or agent possesses the
23 same qualifications required for the issuance of a craft hemp
24 distributor permit to the person.
25 (5) A minor.
26 (6) A person non compos mentis.
27 (7) A person who has held a permit under this article or
28 permit under this title and who has had that permit under this
29 article or this title, as applicable, revoked within one (1) year
30 prior to the date of application for a craft hemp distributor
31 permit.
32 (8) A person who has made an application for a permit under
33 this article or permit of any type under this title that has been
34 denied less than one (1) year prior to the person's application
35 for a craft hemp distributor permit unless the first application
36 was denied by reason of a procedural or technical defect.
37 (b) Subsection (a)(5) does not prevent a minor from being a
38 stockholder in a corporation.
39 Sec. 4. An application for a craft hemp distributor permit must
40 contain the express statement of the applicant that the applicant
41 consents for the duration of the permit term (if the commission
42 issues the permit to the applicant) to the entrance, inspection, and
ES 478—LS 6068/DI 120 15
1 search by an enforcement officer, without a warrant or other
2 process, of the applicant's premises to determine whether the
3 applicant is complying with the provisions of this title. The consent
4 required by this section is renewed and continued by the retention
5 of a permit or the permit's use by the applicant or the applicant's
6 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 16
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 17
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 employee that was valid at the time the employee 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 18
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 19
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 20
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 manufacturer permit
17 must contain the express statement of the applicant that the
18 applicant consents for the duration of the permit term (if the
19 commission issues the permit to the applicant) to the entrance,
20 inspection, and search by an enforcement officer, without a
21 warrant or other process, of the applicant's premises to determine
22 whether the applicant is complying with the provisions of this title.
23 The consent required by this section is renewed and continued by
24 the retention of a permit or the permit's use by the applicant or the
25 applicant's agents.
26 Sec. 5. (a) A permit issued by the commission under this chapter
27 must contain the following information:
28 (1) The permit number.
29 (2) The permit holder's name.
30 (3) The permanent location of the business for which the
31 permit is issued.
32 (4) The expiration date of the permit.
33 (b) A permit is:
34 (1) valid for two (2) years after the date of issuance, unless the
35 commission suspends the permit; and
36 (2) nontransferable.
37 (c) A permit may be renewed. The fee for renewing a permit is
38 five thousand dollars ($5,000).
39 Sec. 6. If the majority of the ownership of a business that is a
40 permit holder is sold or transferred:
41 (1) the new ownership of the business must apply for a new
42 permit under section 2 of this chapter; and
ES 478—LS 6068/DI 120 21
1 (2) the permit and the permit number held by the previous
2 ownership of the business are void ninety (90) days after the
3 date of the sale or transfer of the ownership of the business.
4 Sec. 7. The commission may adopt rules under IC 4-22-2 to
5 establish procedures for the issuance, renewal, and reinstatement
6 of a permit.
7 Sec. 8. (a) Subject to subsection (b), the commission may
8 suspend the permit of a person who fails to pay a civil penalty
9 imposed by the commission.
10 (b) Before enforcing the imposition of a civil penalty or
11 suspending or revoking a permit under this chapter, the
12 commission shall provide written notice of the alleged violation to
13 the permit holder and conduct a hearing. The commission shall
14 provide written notice of the civil penalty or suspension or
15 revocation of a permit to the permit holder.
16 (c) Subject to subsection (b), the commission shall revoke the
17 permit of a person upon a finding by a preponderance of the
18 evidence that the person:
19 (1) has violated IC 7.1-8-5-2 or IC 7.1-8-8-2;
20 (2) has committed habitual illegal sale of craft hemp as
21 established under IC 7.1-8-8-2(g); or
22 (3) has committed habitual illegal entrance by a minor as
23 established under IC 35-46-1-11.7(f).
24 Sec. 9. (a) If a permit has:
25 (1) expired; or
26 (2) been suspended;
27 the commission may not reinstate or renew the permit until all civil
28 penalties imposed against the permit holder for violating
29 IC 35-46-1-10, IC 35-46-1-10.2, IC 35-46-1-11, IC 35-46-1-11.2,
30 IC 35-46-1-11.4, IC 35-46-1-11.5, IC 35-46-1-11.7, or
31 IC 35-46-1-11.8 have been paid.
32 (b) The failure to pay a civil penalty described in subsection (a)
33 is a Class B infraction.
34 (c) If a permit has been revoked, the commission may not
35 reinstate or renew the permit for at least one hundred eighty (180)
36 days after the date of revocation. The commission may reinstate or
37 renew the permit only upon a reasonable showing by the applicant
38 that the applicant shall:
39 (1) exercise due diligence in the manufacturing of craft hemp;
40 and
41 (2) properly supervise and train the applicant's employees or
42 agents in the handling and manufacturing of craft hemp.
ES 478—LS 6068/DI 120 22
1 If a permit is reinstated or renewed, the applicant of the permit
2 shall pay an application fee of one thousand dollars ($1,000).
3 Sec. 10. The commission may mitigate civil penalties imposed
4 against a permit holder for violating IC 7.1-8-5-2, IC 7.1-8-8-2,
5 IC 35-46-1-11.7, or any of the provisions of this chapter if a permit
6 holder provides a training program for the permit holder's
7 employees that includes training in laws governing the
8 manufacturing of craft hemp.
9 Sec. 11. A permit holder shall exercise due diligence in the
10 supervision and training of the permit holder's employees or agents
11 in the handling and manufacturing of craft hemp.
12 Sec. 12. (a) An employee of a permit holder must hold a valid:
13 (1) driver's license issued by the state of Indiana or another
14 state; or
15 (2) identification card issued by the state of Indiana, another
16 state, or the United States;
17 to manufacture craft hemp.
18 (b) An employee must have the employee's driver's license or
19 identification card or a copy of the employee's driver's license or
20 identification card:
21 (1) either:
22 (A) in the employee's possession; or
23 (B) on file with the employee's employer; and
24 (2) upon request, readily available to show to an excise officer
25 or law enforcement officer;
26 when manufacturing craft hemp.
27 (c) If an employee holds a valid license or identification card as
28 described in subsection (a) but is unable to show the license,
29 identification card, or a copy to an excise officer under subsection
30 (b) because:
31 (1) the employee has left the license, identification card, or
32 copy in another location; or
33 (2) the license, identification card, or copy has otherwise been
34 lost or mislaid;
35 the employee may, within five (5) days of the employee's inability
36 to show the license, identification card, or copy to the excise officer,
37 produce to the excise officer or to the office of the commission
38 satisfactory evidence of a license or identification card issued to the
39 employee that was valid at the time the employee was unable to
40 show the license, identification card, or copy.
41 (d) If an employee who is unable to show a license, identification
42 card, or copy to an excise officer fails to produce satisfactory
ES 478—LS 6068/DI 120 23
1 evidence within five (5) days in the manner described in subsection
2 (c), the commission may impose a civil penalty on the permit
3 holder.
4 Sec. 13. (a) If a permit holder fails to attend or participate in a
5 hearing without good cause, the hearing judge may recommend to
6 the commission that the commission suspend or revoke the permit
7 holder's permit or impose a fine on the permit holder of up to one
8 thousand dollars ($1,000).
9 (b) A hearing judge may grant a continuance of a hearing upon
10 written motion showing good cause for the continuance.
11 Sec. 14. If a permit holder manufactures craft hemp at a
12 location:
13 (1) determined to be a public nuisance; or
14 (2) at which conduct or acts that are crimes or infractions
15 under IC 35 occur;
16 the commission may impose sanctions against the permit holder.
17 Chapter 5. Retail Establishments
18 Sec. 1. (a) Except as provided in subsection (b), a craft hemp
19 retail establishment must keep the craft hemp behind a bar or in
20 a location to which a purchaser does not have access. If a person
21 purchases craft hemp, an employee of the retail establishment shall
22 remove the craft hemp from behind the bar or from the
23 inaccessible location and deliver it to the purchaser.
24 (b) This section does not apply to the holder of a liquor dealer's
25 permit issued under IC 7.1-3-10-4 that is also a craft retail hemp
26 establishment.
27 Sec. 2. (a) A retail establishment may not permit consumption
28 of craft hemp on the premises of the retail establishment.
29 (b) This section does not apply to the service of beverages that
30 contain craft hemp by the following holders of any beer, liquor, or
31 wine retailer's permits issued under this title:
32 (1) A racetrack.
33 (2) A restaurant.
34 (3) A social club.
35 (4) A fraternal club.
36 (5) A resort hotel.
37 (6) An economic redevelopment site.
38 (7) A gaming center.
39 (8) An airport.
40 (9) A horse track.
41 (10) The state fairgrounds.
42 (11) A catering hall.
ES 478—LS 6068/DI 120 24
1 (12) A historic district.
2 (13) A professional sports stadium.
3 (14) A concert venue.
4 (15) A permit premises within a municipal riverfront
5 development project.
6 Chapter 6. Manufacturing Facilities
7 Sec. 1. (a) A craft hemp manufacturer must submit any
8 proposed craft hemp packaging to the commission for preapproval
9 before delivering or causing delivery of craft hemp to a retail
10 establishment.
11 (b) If the commission does not issue a denial under subsection
12 (a) within thirty (30) days, the packaging is deemed approved and
13 eligible for sale.
14 Chapter 7. Advertising
15 Sec. 1. (a) The commission shall have the power to regulate and
16 prohibit advertising, signs, displays, posters, and designs intended
17 to advertise craft hemp or the place where craft hemp is sold.
18 (b) The commission shall not exercise the prohibition power
19 contained in subsection (a) for any advertisement appearing in a
20 newspaper which:
21 (1) is published at least once a week;
22 (2) regularly publishes information of current news interest
23 to the community; and
24 (3) circulates generally to the public in any part of Indiana,
25 regardless of where printed.
26 However, a newspaper shall not include publications devoted to
27 special interests such as labor, religious, fraternal, society, or trade
28 publications or journals or publications owned or issued by
29 political organizations or parties.
30 (c) The commission shall not exercise the prohibition power
31 contained in subsection (a) for any advertisement broadcast over
32 duly licensed radio and television stations.
33 (d) All advertisements relating to craft hemp, whether published
34 in a newspaper or broadcast over radio or television, shall conform
35 to the rules and regulations of the commission.
36 (e) The commission shall not exercise the prohibition power
37 contained in subsection (a) for advertising in the official program
38 of the Indianapolis 500 Race or the Madison Regatta, Inc.,
39 Hydroplane Race.
40 (f) Notwithstanding any other law, the commission may not
41 prohibit the use of an illuminated sign advertising craft hemp by
42 brand name that is displayed within the interior or on the exterior
ES 478—LS 6068/DI 120 25
1 of the premises covered by the permit, regardless of whether the
2 sign is illuminated constantly or intermittently. However, it is
3 unlawful for a craft hemp distributor permit holder to sell, give,
4 supply, furnish, or grant to, or maintain for a craft hemp retail
5 permit holder, an illuminated advertising sign in a manner that
6 violates the trade practice restrictions of the commission or this
7 title. It is unlawful for a craft hemp retail permit holder to receive,
8 accept, display, or permit to be displayed, an illuminated
9 advertising sign sold, given, supplied, furnished, granted, or
10 maintained in violation of this subsection. Unless otherwise stated,
11 when a recipient receives an illuminated advertising sign, the
12 illuminated advertising sign becomes the property and
13 responsibility of the recipient.
14 (g) The commission may not prohibit the advertisement of:
15 (1) craft hemp; or
16 (2) a place where craft hemp may be obtained;
17 in a program, scorecard, handbill, throw-away newspaper, or
18 menu. However, those advertisements must conform to the rules of
19 the commission.
20 (h) The commission shall prohibit a craft hemp retail permit
21 holder from making:
22 (1) a false advertisement;
23 (2) a misleading advertisement;
24 (3) a deceptive statement in an advertisement;
25 (4) an unsubstantiated health claim about a product that is
26 not consistent with the product's labeling; or
27 (5) a statement that disparages a competitor.
28 (i) The commission shall prohibit a craft hemp retail permit
29 holder from placing a physical advertisement within five hundred
30 (500) feet of:
31 (1) a school;
32 (2) a playground;
33 (3) a church; and
34 (4) other locations that the commission determines could
35 contain minors.
36 Sec. 2. The following apply to an outdoor sign on the premises
37 of a permittee:
38 (1) A permittee may use the term "craft hemp", "craft hemp
39 flower", or "craft hemp flower product" on its outdoor
40 signage.
41 (2) A permittee's outdoor signage may not do any of the
42 following:
ES 478—LS 6068/DI 120 26
1 (A) Use the terms "marijuana" or "cannabis".
2 (B) Use a colloquial term for marijuana or marijuana
3 products, such as pot, reefer, or weed.
4 (C) Display an image or visual representation of craft
5 hemp, marijuana, or paraphernalia, or an image that
6 indicates the presence of a product such as smoke, edibles,
7 or gummies.
8 (D) Indicate the presence of a particular compound of craft
9 hemp, such as THC, delta-8, delta-10, or THCA.
10 (3) A permittee's outdoor signage must comply with any
11 applicable local ordinances or regulations relating to signs.
12 Sec. 3. (a) A permittee that maintains a web page must require
13 an individual to affirmatively indicate that the individual is at least
14 twenty-one (21) years of age before accessing the content of the
15 web page.
16 (b) The social media account of a permittee that advertises craft
17 hemp must contain a clearly visible notice on the main page stating
18 that only individuals at least twenty-one (21) years of age may
19 follow the account.
20 (c) A permittee may only send electronic mail advertising its
21 business if the recipient has affirmatively opted-in to receive
22 electronic mail from the permittee.
23 (d) A permittee that uses a QR code in an electronic
24 advertisement must require an individual to affirmatively indicate
25 that the individual is at least twenty-one (21) years of age before
26 accessing the content of the site accessed by the QR code.
27 Sec. 4. A permittee may not do any of the following:
28 (1) Use items such as toys or inflatables, movie or cartoon
29 characters, or any other depiction or image likely to be
30 appealing to children, if the item, image, or depiction suggests
31 an intent to cause children to become interested in the
32 purchase or consumption of craft hemp.
33 (2) Use or employ a commercial mascot outside of, and in
34 proximity to, a permitted business.
35 Chapter 8. Criminal Acts
36 Sec. 1. (a) This section does not apply to a person who holds a
37 permit to sell, distribute, or manufacture craft hemp.
38 (b) A person who knowingly or intentionally:
39 (1) purchases;
40 (2) receives;
41 (3) manufactures;
42 (4) imports;
ES 478—LS 6068/DI 120 27
1 (5) transports;
2 (6) causes to be imported or transports from another state,
3 territory, or country, into Indiana;
4 (7) ships;
5 (8) barters;
6 (9) gives away;
7 (10) exchanges;
8 (11) furnishes;
9 (12) handles; or
10 (13) possesses;
11 craft hemp or a product containing THC (tetrahydrocannabinol)
12 for purposes of sale, commits a Class B misdemeanor.
13 (c) An individual who knowingly or intentionally acquires craft
14 hemp product from a person that the individual knows does not
15 hold an appropriate permit under this article to sell, distribute,
16 manufacture, or give craft hemp product commits a Class B
17 misdemeanor.
18 Sec. 2. (a) A person who recklessly, knowingly, or intentionally
19 sells, barters, exchanges, provides, or furnishes:
20 (1) craft hemp product; or
21 (2) a product containing THC (tetrahydrocannabinol);
22 to a minor commits dealing craft hemp to a minor, a Class A
23 misdemeanor.
24 (b) An offense described in subsection (a) is a:
25 (1) Level 6 felony if the person has a prior unrelated
26 conviction under this section; or
27 (2) Level 5 felony if the consumption, ingestion, or use of the
28 craft hemp product or THC is the proximate cause of serious
29 bodily injury or the death of an individual.
30 (c) The following defenses are available to a person or permit
31 holder accused of dealing craft hemp product to a minor:
32 (1) The buyer or recipient produced a driver's license that
33 included the purchaser's or recipient's photograph and
34 indicated the purchaser or recipient is at least twenty-one (21)
35 years of age to make the purchase.
36 (2) The buyer or recipient produced a photographic
37 identification card issued under IC 9-24-16-1 or a similar card
38 issued under the laws of another state or the federal
39 government that indicated the purchaser or recipient was at
40 least twenty-one (21) years of age to make the purchase.
41 (3) An ordinary, prudent individual would believe the
42 purchaser or recipient was not less than forty (40) years of
ES 478—LS 6068/DI 120 28
1 age based on the purchaser's or recipient's appearance.
2 (d) It is a defense to a prosecution under this section that a
3 permit holder sold or provided craft hemp product to a minor who
4 acted in the ordinary course of employment or a business
5 concerning craft hemp product for the following activities:
6 (1) Agriculture.
7 (2) Processing.
8 (3) Transporting.
9 (4) Wholesaling.
10 (5) Retailing.
11 (e) A person who distributes or sells craft hemp product directly
12 to purchasers through a website must use a reliable online age
13 verification system or obtain and examine a copy of the
14 purchaser's government issued identification.
15 (f) A permit holder who violates subsection (a) or (e) is subject
16 to the following civil penalties:
17 (1) One thousand dollars ($1,000) for the first violation.
18 (2) Five thousand dollars ($5,000) for a second violation that
19 occurs within two (2) years of a first violation and the
20 suspension of the permit for up to six (6) months.
21 (3) Ten thousand dollars ($10,000) for each subsequent
22 violation that occurs within two (2) years of the preceding
23 violation, and revocation of the permit.
24 (g) A permit holder who violates subsection (a) at least three (3)
25 times in a one (1) year period commits habitual furnishing of craft
26 hemp to a minor.
27 (h) A retailer whose permit is suspended under subsection (f)(2)
28 may reapply for a permit after one (1) year of the suspension.
29 Sec. 3. (a) A minor who knowingly or intentionally possesses:
30 (1) craft hemp product; or
31 (2) a product containing THC (tetrahydrocannabinol);
32 commits possession of craft hemp product by a minor, a Class B
33 misdemeanor.
34 (b) It is a defense to a prosecution under this section that the
35 accused minor acted in the ordinary course of employment or a
36 business concerning craft hemp product for the following
37 activities:
38 (1) Agriculture.
39 (2) Processing.
40 (3) Transporting.
41 (4) Wholesaling.
42 (5) Retailing.
ES 478—LS 6068/DI 120 29
1 Sec. 4. (a) As used in this section, "adulterated craft hemp
2 flower product" means:
3 (1) a craft hemp flower product or a purported craft hemp
4 flower product that contains an ingredient that is illegal under
5 or prohibited by:
6 (A) state law;
7 (B) federal law;
8 (C) a commission rule; or
9 (D) a commission regulation;
10 (2) a craft hemp flower product or a purported craft hemp
11 flower product for which the commission does not have a
12 certificate of analysis on file; or
13 (3) a craft hemp flower product that does not substantially
14 correspond to its certificate of analysis.
15 (b) A person who knowingly or intentionally sells, gives away,
16 barters, furnishes, exchanges, possesses, or keeps adulterated craft
17 hemp flower product commits a Class B misdemeanor.
18 SECTION 8. IC 9-13-2-86, AS AMENDED BY P.L.196-2013,
19 SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
20 JULY 1, 2025]: Sec. 86. "Intoxicated" means under the influence of:
21 (1) alcohol;
22 (2) a controlled substance (as defined in IC 35-48-1);
23 (3) a drug other than alcohol or a controlled substance;
24 (4) a substance described in IC 35-46-6-2 or IC 35-46-6-3;
25 (5) a combination of substances described in subdivisions (1)
26 through (4); or
27 (5) craft hemp (as defined by IC 7.1-8-1-2);
28 (6) any other substance, not including food and food ingredients
29 (as defined in IC 6-2.5-1-20), tobacco (as defined in
30 IC 6-2.5-1-28), or a dietary supplement (as defined in
31 IC 6-2.5-1-16); or
32 (7) a combination of substances described in this section;
33 so that there is an impaired condition of thought and action and the loss
34 of normal control of a person's faculties.
35 SECTION 9. IC 15-15-13-6.7 IS ADDED TO THE INDIANA
36 CODE AS A NEW SECTION TO READ AS FOLLOWS
37 [EFFECTIVE JULY 1, 2025]: Sec. 6.7. As used in this chapter,
38 "work in progress hemp extract" means a compound:
39 (1) derived from hemp;
40 (2) intended to be processed into a hemp product;
41 (3) in a partially processed state;
42 (4) having a concentration of delta-9-tetrahydrocannabinol
ES 478—LS 6068/DI 120 30
1 (THC) that exceeds three-tenths of one percent (0.3%) by dry
2 weight; and
3 (5) not marketed for consumer use or consumption.
4 SECTION 10. IC 15-15-13-11, AS AMENDED BY P.L.190-2019,
5 SECTION 12, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
6 JULY 1, 2025]: Sec. 11. Only a hemp licensee, the licensee's designee,
7 or the licensee's agents may be permitted to transport hemp or work in
8 progress hemp extract off a production site. When transporting hemp
9 or work in progress hemp extract off the production site, the hemp
10 licensee, designee, or agent shall have in the licensee's, designee's, or
11 agent's possession the licensing documents from the state seed
12 commissioner evidencing that the hemp or work in progress hemp
13 extract is from certified seed produced by a licensed grower.
14 SECTION 11. IC 15-15-13-11.5 IS ADDED TO THE INDIANA
15 CODE AS A NEW SECTION TO READ AS FOLLOWS
16 [EFFECTIVE JULY 1, 2025]: Sec. 11.5. (a) Subject to subsection (b),
17 a handler holding a valid license under this chapter may possess,
18 manufacture, store, transport, or sell work in progress hemp
19 extract.
20 (b) Work in progress hemp extract may be sold only to a:
21 (1) handler holding a valid license under this chapter;
22 (2) person holding a valid hemp or cannabis license in another
23 jurisdiction; or
24 (3) craft hemp manufacturer permit holder, as described in
25 IC 7.1-8-4.
26 SECTION 12. IC 15-15-13-19, AS ADDED BY P.L.190-2019,
27 SECTION 20, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
28 JULY 1, 2025]: Sec. 19. (a) Hemp bud (as defined in IC 35-48-1-17.2)
29 and hemp flower (as defined in IC 35-48-1-17.3) Craft hemp flower
30 (as defined in IC 35-31.5-2-68.8) may be transported or sold
31 intrastate only to a processor licensed under this chapter for
32 processing or manufacturing into a legal hemp product, including
33 a craft hemp flower product (as defined in IC 35-31.5-2-68.9).
34 (b) Craft hemp flower may be sold and transported interstate in
35 accordance with section 11 of this chapter.
36 (b) (c) The state seed commissioner may impose a civil penalty
37 under section 13 of this chapter for a violation of subsection (a).
38 SECTION 13. IC 16-42-2-2 IS AMENDED TO READ AS
39 FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 2. (a) A food is
40 considered adulterated under any of the following conditions:
41 (1) If the food bears or contains any poisonous or deleterious
42 substance that may make the food injurious to health. However,
ES 478—LS 6068/DI 120 31
1 if the substance is not an added substance, the food is not to be
2 considered adulterated under this subdivision if the quantity of the
3 substance in the food does not ordinarily make the food injurious
4 to health.
5 (2) If:
6 (A) the food bears or contains any added poison or added
7 deleterious substance (other than a poison or a deleterious
8 substance that is a pesticide chemical in or on a raw
9 agricultural commodity, a food additive, or a color additive)
10 that is unsafe within the meaning of section 5 of this chapter;
11 (B) the food is a raw agricultural commodity and the food
12 bears or contains a pesticide chemical that is unsafe under
13 section 5 of this chapter; or
14 (C) the food is or contains a food additive that is unsafe under
15 section 5 of this chapter.
16 However, when a pesticide chemical is used in or on a raw
17 agricultural commodity in conformity with an exemption granted
18 or tolerance prescribed under section 5 of this chapter and the raw
19 agricultural commodity has been subjected to processing such as
20 canning, cooking, freezing, dehydrating, or milling, the residue of
21 the pesticide chemical remaining in or on the processed food,
22 notwithstanding section 5 of this chapter and clause (C) is not
23 considered unsafe if the residue in or on the raw agricultural
24 commodity has been removed to the extent possible in good
25 manufacturing practice, and the concentration of the residues in
26 the processed food, when ready to eat, is not greater than the
27 tolerance prescribed for the raw agricultural commodity.
28 (3) If the food consists in whole or in part of a diseased,
29 contaminated, filthy, putrid, or decomposed substance or if the
30 food is otherwise unfit for food.
31 (4) If the food has been produced, transported, handled, prepared,
32 packed, or held under unsanitary conditions or in unsanitary
33 containers as the result of which the food may have become
34 contaminated with filth or made diseased, unwholesome, or
35 injurious to health.
36 (5) If the food is, in whole or in part, the product of:
37 (A) a diseased animal;
38 (B) an animal that has died otherwise than by slaughter; or
39 (C) an animal that has been fed upon the uncooked offal from
40 a slaughterhouse.
41 (6) If the food's container is composed in whole or in part of any
42 poisonous or deleterious substance that may make the contents
ES 478—LS 6068/DI 120 32
1 injurious to health.
2 (7) If the food has been intentionally subjected to radiation, unless
3 the use of the radiation was in conformity with a rule or an
4 exemption in effect under section 5 of this chapter.
5 (8) If any valuable constituent has been in whole or in part
6 omitted or abstracted from the food.
7 (9) If any substance has been substituted wholly or in part.
8 (10) If damage or inferiority has been concealed in any manner.
9 (11) If any substance has been added to the food or mixed or
10 packed with the food to:
11 (A) increase the food's bulk or weight;
12 (B) reduce the food's quality or strength;
13 (C) make the food appear better or of greater value than the
14 food is; or
15 (D) create a deceptive appearance.
16 (12) If the food bears or contains a coal-tar color other than one
17 from a batch that has been certified by the federal Food and Drug
18 Administrator, as provided by regulations promulgated under
19 authority of the Federal Act.
20 (13) If the food is a confectionery and has partially or completely
21 imbedded embedded in the food any nonnutritive object.
22 However, this subdivision does not apply in the case of any
23 nonnutritive object if, in the judgment of the state department as
24 provided by rules, the nonnutritive object is of practical,
25 functional value to the confectionery product and would not make
26 the product injurious or hazardous to health.
27 (14) If the food is a confectionery and bears or contains any
28 alcohol other than alcohol not in excess of one-half of one percent
29 (0.5%) by volume derived solely from the use of flavoring
30 extracts.
31 (15) If the food is a confectionery and bears or contains any
32 nonnutritive substance. However, this subdivision does not apply
33 to a safe, nonnutritive substance if:
34 (A) the nonnutritive substance is in or on a confectionery for
35 a practical, functional purpose in the manufacture, packaging,
36 or storing of the confectionery; and
37 (B) the use of the substance does not promote deception of the
38 consumer or otherwise result in adulteration or misbranding in
39 violation of any provision of IC 16-42-1 through IC 16-42-4.
40 In addition, the state department may, for the purpose of
41 avoiding or resolving uncertainty as to the application of this
42 subdivision, adopt rules allowing or prohibiting the use of
ES 478—LS 6068/DI 120 33
1 particular nonnutritive substances.
2 (16) If the food falls below the standard of purity, quality, or
3 strength that the food purports or is represented to possess.
4 (17) If the food is or bears or contains any color additive that is
5 unsafe under section 5 of this chapter.
6 (b) Subsection (a)(8) and (a)(9) do not prohibit:
7 (1) the removal of butterfat from; or
8 (2) the addition of skim milk to;
9 dairy products that comply with the definitions and standards for dairy
10 products adopted by the state department.
11 (c) A food is not considered adulterated for containing low THC
12 hemp extract (as defined in IC 35-48-1-17.5) or craft hemp flower
13 (as defined in IC 35-31.5-2-68.8).
14 SECTION 14. IC 24-4-21-3, AS AMENDED BY P.L.190-2019,
15 SECTION 24, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
16 JULY 1, 2025]: Sec. 3. A person may distribute low THC hemp extract
17 in Indiana only if the distributor has a certificate of analysis prepared
18 by an independent testing laboratory showing:
19 (1) that the low THC hemp extract is the product of a batch tested
20 by the independent testing laboratory;
21 (2) that the independent testing laboratory determined that the
22 batch contained not more than three-tenths percent (0.3%) total
23 delta-9-tetrahydrocannabinol (THC), including precursors by
24 weight or volume, based on the testing of a random sample of the
25 batch; and
26 (3) the cannabidiol percent present of the low THC hemp extract.
27 SECTION 15. IC 24-4-21-4, AS ADDED BY P.L.153-2018,
28 SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
29 JULY 1, 2025]: Sec. 4. (a) Except as provided in subsection (b), low
30 THC hemp extract must be distributed in packaging that contains the
31 following information:
32 (1) A scannable bar code or QR code linked to a document that
33 contains information with respect to the manufacture of the low
34 THC hemp extract, including the:
35 (A) batch identification number;
36 (B) product name;
37 (C) batch date;
38 (D) expiration date, which must be not more than two (2) years
39 from the date of manufacture;
40 (E) batch size;
41 (F) total quantity produced;
42 (G) ingredients used, including the:
ES 478—LS 6068/DI 120 34
1 (i) ingredient name;
2 (ii) name of the company that manufactured the ingredient;
3 (iii) company or product identification number or code, if
4 applicable; and
5 (iv) ingredient lot number; and
6 (H) download link for a certificate of analysis for the low THC
7 hemp extract.
8 (2) The batch number.
9 (3) The Internet address of a web site website to obtain batch
10 information.
11 (4) The expiration date.
12 (5) The number of milligrams of low THC hemp extract.
13 (6) The manufacturer.
14 (7) The fact that the product contains not more than three-tenths
15 of one percent (0.3%) total delta-9-tetrahydrocannabinol (THC),
16 including precursors, by weight or volume.
17 (b) Before July 1, 2018, low THC hemp extract may be distributed
18 in Indiana without having met the requirements described in subsection
19 (a).
20 (b) After June 30, 2025, the packaging of low THC hemp extract
21 may not:
22 (1) contain any statement, artwork, or design that could
23 reasonably mislead any person to believe that the package
24 contains anything other than low THC hemp extract; or
25 (2) bear an unauthorized trademark, trade name, famous
26 mark, or other identifying mark, imprint, or device, or any
27 likeness thereof.
28 SECTION 16. IC 24-4-22-3, AS ADDED BY P.L.153-2018,
29 SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
30 JULY 1, 2025]: Sec. 3. (a) Except as provided in subsection (b), A
31 person may sell low THC hemp extract at retail only if the packaging
32 complies with the requirements of IC 24-4-21-4.
33 (b) Before July 1, 2018, a person may sell low THC hemp extract at
34 retail even if the packaging does not comply with the requirements of
35 IC 24-4-21-4.
36 (b) Beginning July 1, 2025, no low THC hemp extract may be
37 distributed, sold, or offered for sale at retail or online to a person
38 who is less than twenty-one (21) years of age.
39 (c) Any website owned, managed, or operated by a person who
40 distributes or sells a low THC hemp extract directly to consumers
41 must verify a consumer's age by either using a reliable online age
42 verification service, or by obtaining and examining a copy of a
ES 478—LS 6068/DI 120 35
1 government issued identification, prior to completing a purchase.
2 (d) A person who violates this section is subject to a civil penalty
3 not to exceed the following:
4 (1) One thousand dollars ($1,000) for a first violation.
5 (2) Five thousand dollars ($5,000) for a second violation that
6 occurs within two (2) years after a first violation, and
7 suspension of the retail merchant's certificate issued under
8 IC 6-2.5-8 for up to six (6) months.
9 (3) Ten thousand dollars ($10,000) for each subsequent
10 violation that occurs within two (2) years of the preceding
11 violation, and revocation of the retail merchant's certificate
12 issued under IC 6-2.5-8, with a one (1) year waiting period for
13 reapplication.
14 (e) It is a defense to a violation under this section that the
15 distributor or seller examined the purchaser's or recipient's
16 driver's license, or other valid government issued identification,
17 that positively identified the purchaser or recipient as being at least
18 twenty-one (21) years of age.
19 SECTION 17. IC 24-4-24.9 IS ADDED TO THE INDIANA CODE
20 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
21 JULY 1, 2025]:
22 Chapter 24.9. Distribution of Craft Hemp Flower Products
23 Sec. 1. As used in this chapter, "certificate of analysis" means
24 a certificate from an independent testing laboratory describing the
25 results of the laboratory's testing of a sample.
26 Sec. 2. As used in this chapter, "craft hemp flower product" has
27 the meaning set forth in IC 35-31.5-2-68.9.
28 Sec. 3. As used in this chapter, "independent testing laboratory"
29 means a laboratory:
30 (1) with respect to which no person having a direct or indirect
31 interest in the laboratory also has a direct or indirect interest
32 in a facility that:
33 (A) processes, distributes, or sells a craft hemp flower
34 product, or a substantially similar substance in another
35 jurisdiction;
36 (B) cultivates, processes, distributes, dispenses, or sells
37 marijuana;
38 (C) cultivates, processes, or distributes hemp; or
39 (D) processes, distributes, or sells low THC hemp extract
40 (as defined in IC 35-48-1-17.5); and
41 (2) that is accredited as a testing laboratory under
42 International Organization for Standardization (ISO) 17025
ES 478—LS 6068/DI 120 36
1 by a third party accrediting body such as the American
2 Association for Laboratory Accreditation (A2LA) or Assured
3 Calibration and Laboratory Accreditation Select Services
4 (ACLASS).
5 Sec. 4. As used in this chapter, "tamper evident packaging"
6 means a package having at least one (1) indicator or a barrier to
7 entry that, if breached or missing, can reasonably be expected to
8 provide visible evidence to consumers that tampering has occurred.
9 Sec. 5. (a) Before a person may distribute a craft hemp flower
10 product, the distributor must have a certificate of analysis
11 prepared by an independent testing laboratory showing the
12 following:
13 (1) That the craft hemp flower product is the product of a
14 batch tested by the independent testing laboratory.
15 (2) That the independent testing laboratory determined that
16 the batch contained not more than three-tenths of one percent
17 (0.3%) tetrahydrocannabinol (THC), by weight or volume,
18 based on the testing of a random sample of the batch.
19 (3) That the batch has been tested for and does not exceed the
20 acceptable levels set forth under section 7 of this chapter for
21 the following contaminants:
22 (A) Heavy metals, including cadmium, lead, arsenic, and
23 mercury.
24 (B) Pesticides.
25 (C) Herbicides.
26 (D) Mycotoxins.
27 (E) Bacterial toxins.
28 (F) Chemical solvent residues.
29 (4) The potency of the craft hemp flower product, including
30 the projected percentage of:
31 (A) THC;
32 (B) cannabidiol; and
33 (C) other cannabinoids in the craft hemp flower product;
34 by weight or volume.
35 (b) Each batch of a craft hemp flower product submitted to an
36 independent testing laboratory under this section must have been
37 harvested at the same time and cultivated in a contiguous area in
38 the same field or facility.
39 Sec. 6. A craft hemp flower product must be distributed in
40 tamper evident packaging that contains the following information:
41 (1) A scannable bar code or QR code linked to a document
42 that contains information with respect to the craft hemp
ES 478—LS 6068/DI 120 37
1 flower product, including the:
2 (A) batch identification number;
3 (B) product name;
4 (C) batch date;
5 (D) expiration date, which must be not more than two (2)
6 years from the date of harvest;
7 (E) batch size;
8 (F) total quantity produced;
9 (G) ingredients used, including the:
10 (i) ingredient name;
11 (ii) name of the company that manufactured the
12 ingredient;
13 (iii) company or product identification number or code,
14 if applicable; and
15 (iv) ingredient lot number; and
16 (H) download link for a certificate of analysis for the craft
17 hemp flower product.
18 (2) The batch identification number.
19 (3) The address of a website to obtain batch information.
20 (4) The expiration date, which must be not more than two (2)
21 years from the date of harvest.
22 (5) The number of grams of craft hemp flower (as defined in
23 IC 35-31.5-2-68.8) contained in the craft hemp flower product.
24 (6) The facility that produced the craft hemp flower product.
25 (7) The fact that the product contains not more than
26 three-tenths of one percent (0.3%) tetrahydrocannabinol
27 (THC), by weight or volume.
28 Sec. 7. A craft hemp flower product may not be distributed if a
29 certificate of analysis prepared by an independent testing
30 laboratory shows any of the following:
31 (1) A concentration of metals that is more than any of the
32 following:
33 (A) Four-tenths (0.4) part per million of cadmium.
34 (B) Five-tenths (0.5) part per million of lead.
35 (C) Four-tenths (0.4) part per million of arsenic.
36 (D) Two-tenths (0.2) part per million of mercury.
37 (2) A concentration of microbiological units that is more than
38 any of the following:
39 (A) One (1) colony forming unit per gram of Shiga-Toxin
40 Escherichia coli.
41 (B) One (1) colony forming unit per gram of Salmonella
42 spp.
ES 478—LS 6068/DI 120 38
1 (C) Ten thousand (10,000) colony forming units of
2 culturable mold.
3 (3) A concentration of residual solvents and chemicals that is
4 not more than any of the following:
5 (A) Five thousand (5,000) parts per million of butane.
6 (B) Two (2) parts per million of benzene.
7 (C) Five thousand (5,000) parts per million of heptane.
8 (D) Two hundred ninety (290) parts per million of hexane.
9 (E) Eight hundred ninety (890) parts per million of toluene.
10 (F) One (1) part per million of total xylenes, including
11 ortho-xylene, meta-xylene, and para-xylene.
12 Sec. 8. (a) A person who knowingly or intentionally distributes
13 or sells a craft hemp flower product in violation of this chapter
14 commits a Class B misdemeanor. However, the offense is a Class
15 A misdemeanor if the person has a prior unrelated conviction for
16 a violation of this chapter.
17 (b) The penalties in this section are in addition to any criminal
18 penalties that may be imposed for unlawful possession or
19 distribution of a controlled substance.
20 SECTION 18. IC 34-30-2.1-72, AS ADDED BY P.L.105-2022,
21 SECTION 12, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
22 JULY 1, 2025]: Sec. 72. IC 7.1-5-10-15 (Concerning alcoholic
23 beverage permittee or permittee's agent refusing to serve alcoholic
24 beverages or craft hemp product to certain persons).
25 SECTION 19. IC 34-30-2.1-73, AS ADDED BY P.L.105-2022,
26 SECTION 12, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
27 JULY 1, 2025]: Sec. 73. IC 7.1-5-10-15.5 (Concerning persons who
28 furnish an alcoholic beverage or craft hemp product for damages
29 caused by an impaired or intoxicated person).
30 SECTION 20. IC 35-31.5-2-68.8 IS ADDED TO THE INDIANA
31 CODE AS A NEW SECTION TO READ AS FOLLOWS
32 [EFFECTIVE JULY 1, 2025]: Sec. 68.8. (a) "Craft hemp flower"
33 means the harvested reproductive organ, whether immature or
34 mature, of the Cannabis sativa L. plant containing not more than
35 three-tenths of one percent (0.3%) of delta-9 tetrahydrocannabinol
36 (THC) by weight or volume, in a form that is intended to allow
37 THC to be introduced into the human body by inhalation of smoke.
38 (b) The term does not include agricultural hemp seed (as defined
39 in IC 15-15-13-2).
40 SECTION 21. IC 35-31.5-2-68.9 IS ADDED TO THE INDIANA
41 CODE AS A NEW SECTION TO READ AS FOLLOWS
42 [EFFECTIVE JULY 1, 2025]: Sec. 68.9. (a) "Craft hemp flower
ES 478—LS 6068/DI 120 39
1 product" means a substance or product for sale to consumers that:
2 (1) is derived from or contains any part of craft hemp flower;
3 (2) contains not more than:
4 (A) three-tenths of one percent (0.3%) of delta-9
5 tetrahydrocannabinol (THC); and
6 (B) two hundred sixty-three thousandths percent (0.263%)
7 of tetrahydrocannabinolic acid (THCA);
8 by weight or volume;
9 (3) contains no other controlled substances; and
10 (4) is in the form of:
11 (A) a gummy that contains not more than one hundred
12 (100) milligrams of THC, delta-8 tetrahydrocannabinol,
13 delta-10 tetrahydrocannabinol, or hexahydrocannabinol
14 per serving and not more than three thousand (3,000)
15 milligrams of THC, delta-8 tetrahydrocannabinol, delta-10
16 tetrahydrocannabinol, or hexahydrocannabinol per
17 package;
18 (B) an edible that contains not more than one hundred
19 (100) milligrams of THC, delta-8 tetrahydrocannabinol,
20 delta-10 tetrahydrocannabinol, or hexahydrocannabinol
21 per individualized unit and not more than three thousand
22 (3,000) milligrams of THC, delta-8 tetrahydrocannabinol,
23 delta-10 tetrahydrocannabinol, or hexahydrocannabinol
24 per package;
25 (C) a drink that contains not more than ten (10) milligrams
26 of THC, delta-8 tetrahydrocannabinol, delta-10
27 tetrahydrocannabinol, or hexahydrocannabinol per
28 individualized unit and not more than two hundred forty
29 (240) milligrams of THC per package;
30 (D) a tincture that contains not more than one hundred
31 (100) milligrams of THC, delta-8 tetrahydrocannabinol,
32 delta-10 tetrahydrocannabinol, or hexahydrocannabinol
33 per serving and not more than three thousand (3,000)
34 milligrams of THC, delta-8 tetrahydrocannabinol, delta-10
35 tetrahydrocannabinol, or hexahydrocannabinol per
36 package;
37 (E) an e-liquid that contains not more than three (3) grams
38 of THC, delta-8 tetrahydrocannabinol, delta-10
39 tetrahydrocannabinol, or hexahydrocannabinol per device;
40 or
41 (F) a topical not for human consumption.
42 The term does not include smokable hemp.
ES 478—LS 6068/DI 120 40
1 (b) A variance of up to twenty percent (20%) from the
2 milligram limits described in subsection (a) is permitted to account
3 for testing variability and manufacturing tolerances.
4 SECTION 22. IC 35-46-1-11.7, AS AMENDED BY P.L.56-2023,
5 SECTION 324, IS AMENDED TO READ AS FOLLOWS
6 [EFFECTIVE JULY 1, 2025]: Sec. 11.7. (a) A retail establishment in
7 which tobacco products, electronic cigarettes, and e-liquids, and craft
8 hemp flower products account for at least eighty-five percent (85%)
9 of the retail establishment's gross sales may not allow an individual
10 who is less than twenty-one (21) years of age to enter the retail
11 establishment.
12 (b) An individual who is less than twenty-one (21) years of age may
13 not enter a retail establishment described in subsection (a).
14 (c) A retail establishment described in subsection (a) must
15 conspicuously post on all entrances to the retail establishment the
16 following:
17 (1) A sign in boldface type that states "NOTICE: It is unlawful for
18 a person less than 21 years old to enter this store.".
19 (2) A sign printed in letters and numbers at least one-half (1/2)
20 inch high that displays a toll free phone number for assistance to
21 callers in quitting smoking, as determined by the Indiana
22 department of health.
23 (d) A person who violates this section commits a Class C infraction.
24 Notwithstanding IC 34-28-5-4(c), a civil judgment for an infraction
25 committed under this section must be imposed as follows:
26 (1) If the person has not been cited for a violation of this section
27 in the previous one (1) year, a civil penalty of up to four hundred
28 dollars ($400).
29 (2) If the person has had one (1) violation in the previous one (1)
30 year, a civil penalty of up to eight hundred dollars ($800).
31 (3) If the person has had two (2) violations in the previous one (1)
32 year, a civil penalty of up to one thousand four hundred dollars
33 ($1,400).
34 (4) If the person has had three (3) or more violations in the
35 previous one (1) year, a civil penalty of up to two thousand dollars
36 ($2,000).
37 A person may not be cited more than once every twenty-four (24)
38 hours.
39 (e) Notwithstanding IC 34-28-5-5(c), civil penalties collected under
40 this section must be deposited in the Richard D. Doyle youth tobacco
41 education and enforcement fund established under IC 7.1-6-2-6.
42 (f) A person who violates subsection (a) at least six (6) times in any
ES 478—LS 6068/DI 120 41
1 one (1) year period commits habitual illegal entrance by a minor, a
2 Class B infraction.
3 SECTION 23. IC 35-48-1-9, AS AMENDED BY P.L.153-2018,
4 SECTION 17, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
5 JULY 1, 2025]: Sec. 9. "Controlled substance" means a drug,
6 substance, or immediate precursor in schedule I, II, III, IV, or V under:
7 (1) IC 35-48-2-4, IC 35-48-2-6, IC 35-48-2-8, IC 35-48-2-10, or
8 IC 35-48-2-12, if IC 35-48-2-14 does not apply; or
9 (2) a rule adopted by the board, if IC 35-48-2-14 applies.
10 The term does not include low THC hemp extract or a craft hemp
11 flower product.
12 SECTION 24. IC 35-48-1-9.3, AS AMENDED BY P.L.80-2019,
13 SECTION 18, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
14 JULY 1, 2025]: Sec. 9.3. (a) "Controlled substance analog" means a
15 substance that, due to its chemical structure and potential for abuse or
16 misuse, meets the following criteria:
17 (1) The substance is substantially similar to a controlled substance
18 classified under IC 35-48-2.
19 (2) The substance has a narcotic, stimulant, depressant, or
20 hallucinogenic effect on the central nervous system or is
21 represented or intended to have a narcotic, stimulant, depressant,
22 or hallucinogenic effect on the central nervous system
23 substantially similar to or greater than that of a controlled
24 substance classified under IC 35-48-2.
25 (b) The definition set forth in subsection (a) does not include:
26 (1) a controlled substance;
27 (2) a legend drug;
28 (3) a substance for which there is an approved new drug
29 application;
30 (4) any compound, mixture, or preparation that contains any
31 controlled substance, that is not for administration to a human
32 being or an animal, and that is packaged in a form or
33 concentration, or with adulterants or denaturants, such that as
34 packaged it does not present any significant potential for abuse;
35 or
36 (5) a substance to which an investigational exemption applies
37 under Section 505 of the federal Food, Drug and Cosmetic Act
38 (chapter 675, 52 Stat. 1052 (21 U.S.C. 355)), but only to the
39 extent that conduct with respect to the substance is pursuant to the
40 exemption; or
41 (6) low THC hemp extract; or
42 (7) a craft hemp flower product.
ES 478—LS 6068/DI 120 42
1 (c) For purposes of subsection (a), "substantially similar", as it
2 applies to the chemical structure of a substance, means that the
3 chemical structure of the substance, when compared to the structure of
4 a controlled substance, has a single difference in the structural formula
5 that substitutes one (1) atom or functional group for another, including:
6 (1) one (1) halogen for another halogen;
7 (2) one (1) hydrogen for a halogen;
8 (3) one (1) halogen for a hydrogen; or
9 (4) an alkyl group added or deleted:
10 (A) as a side chain to or from a molecule; or
11 (B) from a side chain of a molecule.
12 SECTION 25. IC 35-48-1-10 IS AMENDED TO READ AS
13 FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 10. (a) "Counterfeit
14 substance", for purposes of IC 35-48-4-5, means a controlled
15 substance which, or the container or labeling of which, without
16 authorization, bears the trademark, trade name, or other identifying
17 mark, imprint, number, or device, or any likeness thereof, of a
18 manufacturer, distributor, or dispenser other than the person who in
19 fact manufactured, distributed, or dispensed the substance.
20 (b) "Counterfeit substance", for purposes of IC 35-48-4-5.5,
21 means craft hemp flower or a craft hemp flower product which, or
22 the container or labeling of which, without authorization, bears the
23 trademark, trade name, or other identifying mark, imprint,
24 number, or device, or any likeness thereof, of a manufacturer,
25 distributor, or dispenser other than the person who in fact
26 manufactured, distributed, or dispensed the substance.
27 SECTION 26. IC 35-48-1-10.5 IS ADDED TO THE INDIANA
28 CODE AS A NEW SECTION TO READ AS FOLLOWS
29 [EFFECTIVE JULY 1, 2025]: Sec. 10.5. "Craft hemp flower
30 product" has the meaning set forth in IC 35-31.5-2-68.9.
31 SECTION 27. IC 35-48-1-16.8, AS ADDED BY P.L.153-2018,
32 SECTION 19, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
33 JULY 1, 2025]: Sec. 16.8. "Hashish" does not include:
34 (1) low THC hemp extract; or
35 (2) a craft hemp flower product.
36 SECTION 28. IC 35-48-1-17.2 IS REPEALED [EFFECTIVE JULY
37 1, 2025]. Sec. 17.2. (a) "Hemp bud" means the harvested immature
38 reproductive organ of the female hemp plant.
39 (b) The term does not include agricultural hemp seed.
40 SECTION 29. IC 35-48-1-17.3 IS REPEALED [EFFECTIVE JULY
41 1, 2025]. Sec. 17.3. (a) "Hemp flower" means the harvested
42 reproductive organ, whether immature or mature, of the female hemp
ES 478—LS 6068/DI 120 43
1 plant.
2 (b) The term does not include agricultural hemp seed.
3 SECTION 30. IC 35-48-1-17.5, AS AMENDED BY P.L.190-2019,
4 SECTION 28, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
5 JULY 1, 2025]: Sec. 17.5. (a) "Low THC hemp extract" means a
6 substance or compound that:
7 (1) is derived from or contains any part of the plant Cannabis
8 sativa L. that meets the definition of hemp under IC 15-15-13-6;
9 (2) contains not more than three-tenths of one percent (0.3%)
10 total delta-9-tetrahydrocannabinol (THC), including precursors,
11 by weight or volume; and
12 (3) contains no other controlled substances.
13 (b) The term does not include:
14 (1) the harvested reproductive organ, whether immature or
15 mature, of the female hemp plant; or
16 (2) smokable hemp. a craft hemp flower product; or
17 (3) smokable hemp.
18 SECTION 31. IC 35-48-1-19, AS AMENDED BY P.L.190-2019,
19 SECTION 29, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
20 JULY 1, 2025]: Sec. 19. (a) "Marijuana" means any part of the plant
21 genus Cannabis whether growing or not; the seeds thereof; the resin
22 extracted from any part of the plant, including hashish and hash oil; any
23 compound, manufacture, salt, derivative, mixture, or preparation of the
24 plant, its seeds or resin.
25 (b) The term does not include:
26 (1) the mature stalks of the plant;
27 (2) fiber produced from the stalks;
28 (3) oil or cake made from the seeds of the plant;
29 (4) any other compound, manufacture, salt, derivative, mixture,
30 or preparation of the mature stalks (except the resin extracted
31 therefrom);
32 (5) the sterilized seed of the plant which is incapable of
33 germination;
34 (6) hemp (as defined by IC 15-15-13-6);
35 (7) low THC hemp extract; or
36 (8) smokable hemp. a craft hemp flower product.
37 SECTION 32. IC 35-48-1-26.6, AS ADDED BY P.L.190-2019,
38 SECTION 30, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
39 JULY 1, 2025]: Sec. 26.6. (a) Except as provided in subsection (b),
40 "smokable hemp" means a product, plant, or part of a plant
41 containing THC (tetrahydrocannabinol), not more than three-tenths
42 percent (0.3%) delta-9-tetrahydrocannabinol (THC), including
ES 478—LS 6068/DI 120 44
1 precursors and derivatives of THC, in a form that allows THC to be
2 introduced into the human body by inhalation of smoke. Except as
3 provided in subsection (b), the term includes craft hemp flower.
4 (1) hemp bud; and
5 (2) hemp flower.
6 (b) The term does not include a craft hemp flower product (as
7 defined in IC 35-31.5-2-68.9), or:
8 (1) a hemp plant that is; or
9 (2) parts of a hemp plant that are; or
10 (3) craft hemp flower that is;
11 grown or handled by a licensee for processing or manufacturing into a
12 legal hemp product, including a craft hemp flower product.
13 SECTION 33. IC 35-48-4-5.5 IS ADDED TO THE INDIANA
14 CODE AS A NEW SECTION TO READ AS FOLLOWS
15 [EFFECTIVE JULY 1, 2025]: Sec. 5.5. A person who:
16 (1) knowingly or intentionally:
17 (A) creates;
18 (B) delivers; or
19 (C) finances the delivery of;
20 a counterfeit substance; or
21 (2) possesses, with intent to:
22 (A) deliver; or
23 (B) finance the delivery of;
24 a counterfeit substance;
25 commits dealing in a counterfeit hemp substance, a Class A
26 misdemeanor. However, a person may be convicted of an offense
27 under subdivision (2) only if there is evidence in addition to the
28 weight of the counterfeit substance that the person intended to
29 deliver or finance the delivery of the counterfeit substance.
30 SECTION 34. IC 35-52-7-97.1 IS ADDED TO THE INDIANA
31 CODE AS A NEW SECTION TO READ AS FOLLOWS
32 [EFFECTIVE JULY 1, 2025]: Sec. 97.1. IC 7.1-8-8-1, IC 7.1-8-8-2,
33 IC 7.1-8-8-3, and IC 7.1-8-8-4 define crimes concerning craft hemp
34 product.
35 SECTION 35. IC 35-52-24-20.4 IS ADDED TO THE INDIANA
36 CODE AS A NEW SECTION TO READ AS FOLLOWS
37 [EFFECTIVE JULY 1, 2025]: Sec. 20.4. IC 24-4-24.9-8 defines a
38 crime concerning distribution or sale of craft hemp flower
39 products.
40 SECTION 36. An emergency is declared for this act.
ES 478—LS 6068/DI 120 45
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 46
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 47
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 48
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 49
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 50
(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 51
(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 52
(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 53
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 54
(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 55
(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 56
(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 57
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 58
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 59
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 60
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 61
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 62
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 63
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 64
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 65
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 66
"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 67
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 68
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 69
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 70
(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 71
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 72
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 73
(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 74
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 75
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 76
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 77
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 78
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 79
(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 80
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 81
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 82
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 83
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 84
(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 85
(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 86
(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 87
(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 88
(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 89
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 90
(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 91
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 92
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 93
"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 94
(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.
_____
COMMITTEE REPORT
Mr. Speaker: Your Committee on Courts and Criminal Code, 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, delete lines 1 through 17.
Delete pages 2 through 5.
Page 6, delete lines 1 through 32.
Page 7, line 31, delete "a".
Page 7, line 32, after "craft hemp" insert "flower".
Page 9, line 19, delete "July 1, 2025," and insert "January 1,
2025,".
Page 9, delete lines 23 through 31, begin a new paragraph and
insert:
"Chapter 1. Definitions
Sec. 1. As used in this article, "convenience store" means a retail
establishment that:
(1) has a retail premises that is less than two thousand five
hundred (2,500) square feet; and
(2) sells prepackaged food, snacks, and beverages, and which
may sell gasoline or automotive products.
The term does not include a drug store.
Sec. 2. As used in this article, "craft hemp" means craft hemp
flower product, craft hemp flower, or low THC hemp extract.
Sec. 3. As used in this article, "craft hemp flower" has the
meaning set forth in IC 35-31.5-2-68.8.
Sec. 4. As used in this article, "craft hemp flower product" has
ES 478—LS 6068/DI 120 95
the meaning set forth in IC 35-31.5-2-68.9.
Sec. 5. As used in this article, "drug store" has the meaning set
forth in IC 7.1-1-3-15.
Sec. 6. As used in this article, "low THC hemp extract" has the
meaning set forth in IC 35-48-1-17.5.
Sec. 7. As used in this article, "restricted grocery store" means
a retail establishment that:
(1) is primarily engaged in the retail sale of a general food line
that includes:
(A) canned and frozen foods;
(B) fresh fruits and vegetables;
(C) fresh and prepared meat, fish, and poultry;
(D) groceries or gourmet foods in combination with
general lines of new merchandise, including apparel,
furniture, and appliances; or
(E) specialty or gourmet foods; and
(2) has a retail premises that is at least two thousand five
hundred (2,500) square feet.
Chapter 1.5. Craft Hemp Permits
Sec. 1. (a) The holder of a permit issued under this article shall
keep and maintain all invoices of craft hemp that is purchased or
acquired. Each invoice must contain the following information:
(1) The permit numbers of each party in a transaction.
(2) The transaction date or dates.
(3) The expiration date or dates of the permit holder's permit
or permits.
(4) Each permit holder's address.
(b) The holder of a permit issued under this article must:
(1) keep the invoices described in subsection (a) on the permit
holder's premises; and
(2) make the invoices described in subsection (a) available for
inspection by the commission.".
Page 9, between lines 36 and 37, begin a new paragraph and insert:
"(b) The commission may issue not more than nine thousand
four hundred (9,400) retail permits.
(c) The commission may not issue a retail permit to a:
(1) restricted grocery store; or
(2) drug store.
(d) The commission may issue a retail permit to a convenience
store.".
Page 9, line 37, delete "(b)" and insert "(e)".
Page 9, line 40, delete "(c)" and insert "(f)".
ES 478—LS 6068/DI 120 96
Page 9, line 42, delete "(d)" and insert "(g)".
Page 9, line 42, delete "retail craft hemp" and insert "craft hemp
retail".
Page 10, line 31, after "flower" insert "products".
Page 12, line 8, after "permit" insert "under this article".
Page 12, line 9, delete "which" and insert "that".
Page 12, line 15, after "hemp" insert "retail".
Page 14, line 14, after "of craft hemp" insert "flower".
Page 15, line 1, delete "individual that" and insert "employee that".
Page 15, line 1, delete "the individual" and insert "the employee".
Page 15, line 29, delete "premise" and insert "premises".
Page 16, line 7, delete "retail craft hemp" and insert "craft hemp
retail".
Page 16, line 11, delete "manufacturing" and insert
"manufacturer".
Page 16, line 30, delete "21" and insert "21.".".
Page 18, line 32, after "hemp" insert "distributor".
Page 18, line 33, after "permit" insert "under this article".
Page 18, line 40, after "hemp" insert "distributor".
Page 21, line 18, delete "individual that" and insert "employee
that".
Page 21, line 18, delete "the individual" and insert "the employee".
Page 24, line 16, after "hemp" insert "manufacturer".
Page 26, line 38, delete "individual that" and insert "employee
that".
Page 26, line 38, delete "the individual" and insert "the employee".
Page 27, line 23, delete "subsection" and insert "section".
Page 27, line 28, delete "subsection" and insert "section".
Page 27, line 30, delete "IC 7.1:" and insert "this title:".
Page 28, between lines 2 and 3, begin a new line block indented and
insert:
"(15) A permit premises within a municipal riverfront
development project.".
Page 29, line 1, delete "retail craft hemp" and insert "craft hemp
retail".
Page 29, line 4, delete "retail craft hemp" and insert "craft hemp
retail".
Page 29, line 17, delete "retail craft hemp" and insert "craft hemp
retail".
Page 29, line 25, delete "retail craft hemp" and insert "craft hemp
retail".
Page 30, line 34, delete "craft hemp as defined in" and insert "craft
ES 478—LS 6068/DI 120 97
hemp.".
Page 30, delete line 35.
Page 31, delete line 2.
Page 31, line 3, delete "(8)" and insert "(7)".
Page 31, line 4, delete "(9)" and insert "(8)".
Page 31, line 5, delete "(10)" and insert "(9)".
Page 31, line 6, delete "(11)" and insert "(10)".
Page 31, line 7, delete "(12)" and insert "(11)".
Page 31, line 8, delete "(13)" and insert "(12)".
Page 31, line 9, delete "(14)" and insert "(13)".
Page 31, line 14, delete "deliver," and insert "distribute,
manufacture, or".
Page 31, line 15, delete "furnish, or".
Page 31, line 29, delete "permittee" and insert "permit holder".
Page 31, line 30, after "hemp" insert "product".
Page 32, line 2, delete "permittee" and insert "permit holder".
Page 32, line 4, delete "products" and insert "product".
Page 32, line 10, after "hemp" insert "product".
Page 32, line 14, delete "permittee" and insert "permit holder".
Page 32, line 19, delete "retailer's".
Page 32, line 22, delete "retailer's".
Page 32, line 23, delete "permittee" and insert "permit holder".
Page 32, line 29, delete "hemp;" and insert "hemp product;".
Page 32, line 31, after "hemp" insert "product".
Page 32, line 35, delete "products" and insert "product".
Page 32, between lines 41 and 42, begin a new paragraph and insert:
"Sec. 4. (a) As used in this section, "adulterated craft hemp
flower product" means:
(1) a craft hemp flower product or a purported craft hemp
flower product that contains an ingredient that is illegal under
or prohibited by:
(A) state law;
(B) federal law;
(C) a commission rule; or
(D) a commission regulation;
(2) a craft hemp flower product or a purported craft hemp
flower product for which the commission does not have a
certificate of analysis on file; or
(3) a craft hemp flower product that does not substantially
correspond to its certificate of analysis.
(b) A person who knowingly or intentionally sells, gives away,
barters, furnishes, exchanges, possesses, or keeps adulterated craft
ES 478—LS 6068/DI 120 98
hemp flower product commits a Class B misdemeanor.
SECTION 13. IC 9-13-2-86, AS AMENDED BY P.L.196-2013,
SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 86. "Intoxicated" means under the influence of:
(1) alcohol;
(2) a controlled substance (as defined in IC 35-48-1);
(3) a drug other than alcohol or a controlled substance;
(4) a substance described in IC 35-46-6-2 or IC 35-46-6-3;
(5) a combination of substances described in subdivisions (1)
through (4); or
(5) craft hemp (as defined by IC 7.1-8-1-2);
(6) any other substance, not including food and food ingredients
(as defined in IC 6-2.5-1-20), tobacco (as defined in
IC 6-2.5-1-28), or a dietary supplement (as defined in
IC 6-2.5-1-16); or
(7) a combination of substances described in this section;
so that there is an impaired condition of thought and action and the loss
of normal control of a person's faculties.".
Page 33, line 7, delete "delta-9 THC" and insert
"delta-9-tetrahydrocannabinol (THC)".
Page 33, line 36, delete "by" and insert "in".
Page 33, line 39, delete "by" and insert "in".
Page 38, line 13, delete "dealer's" and insert "merchant's".
Page 38, line 13, after "certificate" insert "issued under
IC 6-2.5-8".
Page 38, line 17, delete "dealer's" and insert "merchant's".
Page 38, line 17, delete "certificate," and insert "certificate issued
under IC 6-2.5-8,".
Page 40, line 27, delete "by" and insert "in".
Page 41, line 39, delete "female".
Page 43, line 14, after "hemp" insert "flower".
Page 45, line 26, after "means" insert "craft".
Page 45, line 26, after "a" insert "craft".
Page 46, line 40, reset in roman "or".
Page 46, line 41, delete "product; or" and insert "product.".
Page 46, delete line 42.
Page 47, line 13, delete "by" and insert "in".
Page 47, delete lines 36 through 42.
Page 48, delete line 1.
Page 48, line 5, delete "and".
Page 48, line 5, after "IC 7.1-8-8-3" insert ", and IC 7.1-8-8-4".
ES 478—LS 6068/DI 120 99
Renumber all SECTIONS consecutively.
and when so amended that said bill do pass.
(Reference is to ESB 478 as printed April 3, 2025.)
MCNAMARA
Committee Vote: yeas 9, nays 3.
_____
HOUSE MOTION
Mr. Speaker: I move that Engrossed Senate Bill 478 be amended to
read as follows:
Page 44, delete lines 37 through 42.
Page 45, delete lines 1 through 11.
(Reference is to ESB 478 as printed April 9, 2025.)
TESHKA
_____
HOUSE MOTION
Mr. Speaker: I move that Engrossed Senate Bill 478 be amended to
read as follows:
Page 4, line 19, delete "two" and insert "three".
Page 4, line 20, delete "(2,500)" and insert "(3,500)".
Page 5, line 3, delete "two" and insert "three".
Page 5, line 4, delete "(2,500)" and insert "(3,500)".
Page 5, delete lines 24 through 28, begin a new paragraph and
insert:
"(b) The commission may issue not more than twenty thousand
(20,000) retail permits.
(c) The commission may issue a restricted retail permit to a
drug store or restricted grocery store authorizing the sale of one
(1) or more of the following:
(1) A product containing not more than three-tenths of one
percent (0.3%) total tetrahydrocannabinol (THC).
ES 478—LS 6068/DI 120 100
(2) A beverage described in IC 35-31.5-2-68.9(a)(4)(C).".
(Reference is to ESB 478 as printed April 9, 2025.)
TESHKA
ES 478—LS 6068/DI 120