(INDIANAPOLIS) - Indiana lawmakers advanced legislation that would ban intoxicating hemp products, including delta-8 THC drinks, while creating new regulations for lower-potency products.
The bill, Senate Bill 250, received its first committee approval and is intended to align Indiana law with federal rules limiting THC content and banning synthetic THC. According to the Indiana Capital Chronicle, the measure would take effect in July, about four months earlier than corresponding federal provisions.
The proposal creates a permitting system for manufacturers, distributors, retailers and carriers of legal low-THC products. Enforcement would fall to the Indiana Alcohol and Tobacco Commission. The bill would also ban online sales, prohibit on-site consumption and restrict advertising near schools and playgrounds.
Opponents warn the bill could severely impact the hemp industry. Justin Swanson, representing the Midwest Hemp Council and 3Chi, said the legislation could effectively eliminate the delta-8 market in Indiana. Sun King Brewery CEO Dave Colt told the Indiana Capital Chronicle that THC seltzers support multiple Hoosier businesses and help companies retain employees.
The legislation also sets new requirements for labeling, testing and containers. A fiscal analysis estimates it would cost about $500,000 to administer the program, with expenses offset by permit and licensing fees. Revenue would be used for enforcement, administrative costs and the state's 988 suicide and crisis hotline.
State Sen. Aaron Freeman, the bill's sponsor, said the goal is to protect young people while providing clarity for businesses. The measure passed committee on a party-line vote and now heads to the Senate Appropriations Committee before a full Senate vote.