Indiana would require hemp permits and prohibit online product sales

Indiana's Alcohol and Tobacco Commission would issue yearly permits for making, distributing, selling, and transporting covered hemp products. Covered products would include CBD and other hemp products for human or animal use. Industrial hemp transport would instead require a hemp handler license. Each manufacturing, distribution, or sales location would need its own permit. A person could hold only one permit type. Manufacturers would sell only to permitted distributors, and distributors would sell only to permitted retailers. Yearly permits would cost $1,000 for manufacturers, $750 for distributors, $550 for retailers, and $250 for each carrier vehicle. Applications would cost $250. Knowingly or intentionally transporting covered products made outside Indiana into or through the state would be a misdemeanor. The permit article would apply October 1, 2026, if enacted.

Hemp retailers would check buyers' ages, prohibit use at the store, and sell covered products without online orders or customer delivery. These rules would cover permitted hemp retailers and advertising by hemp permit holders. Buyers who are or reasonably appear under 40 would need photo identification showing they are at least 21. The age and identification rules would not apply to CBD products containing cannabidiol or cannabigerol without THC, other cannabinoids, or controlled substances. Stores and their advertising could not be within 1,000 feet of schools, playgrounds, child care centers, libraries, or government property. Advertising could not target children, make health claims, or appear on vehicles or at public transportation locations. The retail and advertising article would apply October 1, 2026, if enacted.

Manufacturers would test covered products, and businesses would use safety labels and child-resistant packaging. Covered products would include CBD and hemp products used by people or animals. Approved drugs would be excluded. The hemp definition would exclude finished products with more than 0.4 milligram per container of combined THC and certain other chemicals with similar effects. That definition would also exclude specified synthetic cannabis chemicals and smokable hemp. Manufacturers would use federally registered laboratories. Labels would show cannabinoid amounts, a link to test results, and a health warning. Products violating the product article would be treated as marijuana. Police would seize improperly labeled products. Enforcement agencies could also seize buildings or vehicles containing noncompliant products. The definitions would take effect July 1, 2026, if enacted. The product article would apply October 1, 2026.

Hemp growers and industrial hemp handlers would obtain licenses from Indiana's state seed commissioner and pay yearly license fees. These licenses would cover hemp farming and industrial hemp transport. They would not authorize making hemp products regulated by the Alcohol and Tobacco Commission. Applicants would need to be at least 21 and meet business registration, lawful status, and criminal history requirements. Applications would cost $500, with a possible $100 background check fee. Yearly licenses would cost $10,000, which the commissioner could raise by rule. Growers would report crop locations and uses and monitor THC levels. Growers aware that a crop exceeds the allowed THC level would have to secure it and follow state directions for treatment and disposal. A treated crop could be sold only after testing below the acceptable THC level. These licensing and crop provisions would take effect July 1, 2026, if enacted.

Minors could face criminal penalties for knowingly possessing or consuming THC products. People supplying those products to minors could also face penalties. People under 21 could not enter stores where tobacco and THC products account for at least 85% of gross sales. Intoxication would require impaired thought and action and loss of normal control. The minor possession and consumption offense would remain subject to a separate statutory exception. Supplying THC products to a minor would require reckless, knowing, or intentional conduct. Repeat offenses or resulting serious injury or death could carry greater penalties. Police could direct people ages 16 through 20 to buy or receive THC products during enforcement actions. Driving rules would count THC-related impairment as intoxication and include hemp, marijuana, and THC in the definition of a Schedule I drug for vehicle law. These THC-related provisions would take effect July 1, 2026, if enacted.