Indiana lawmakers establish regulatory framework for craft hemp flower products

In a recent meeting of the Indiana State Legislature, lawmakers discussed significant regulatory changes concerning the sale and distribution of hemp-derived products, particularly focusing on craft hemp flower and THC-infused edibles. This discussion comes in response to growing concerns about safety and youth access to these products, highlighted in the 2024 Security School Safety Report from the Indiana Department of Homeland Security.

The proposed legislation aims to establish the Alcohol and Tobacco Commission (ATC) as the primary regulatory body overseeing these products. Key provisions include licensing requirements for manufacturers, distributors, and retailers, as well as a restriction on sales to individuals under 21. The bill also enhances testing protocols for CBD products, expanding testing to include harmful substances such as heavy metals and pesticides, thereby aiming to protect consumers from potentially hazardous materials.

A notable aspect of the bill is its advertising restrictions, which seek to prevent marketing that targets youth. Lawmakers expressed concerns about the indistinguishable packaging of THC gummies compared to regular candy, emphasizing the need for stricter oversight to safeguard young people from exposure to intoxicating substances.

The legislation proposes a cap on the number of retail permits at 9,400, which aligns with the current number of retailers in the market. However, it prohibits larger retail chains, such as grocery stores and pharmacies, from selling these products, a move that some representatives argued could unfairly favor smaller businesses.

Additionally, the bill incorporates recommendations from the Indiana Prosecutor's Council, classifying craft hemp flower as an intoxicant, which would allow law enforcement to prosecute individuals under the influence of these products. This classification aims to clarify the legal standing of craft hemp in relation to traditional cannabis products.

The discussions also touched on the broader implications of the regulatory framework, with some representatives questioning whether Indiana should follow the lead of other states that have banned certain hemp products. The meeting underscored the complexity of navigating the evolving landscape of hemp regulation, balancing public safety with market access.

As the legislature moves forward, the proposed amendments will be further refined, with lawmakers committed to ensuring that the regulatory framework effectively protects consumers while addressing the needs of various stakeholders in the hemp industry. The outcome of this legislation could significantly shape the future of hemp product sales in Indiana, reflecting ongoing debates about public health, safety, and economic opportunity.