Indiana

Indiana is a study in state-level regulatory ambition thwarted by legislative gridlock. The foundation is Senate Enrolled Act 516 (2019), which established the state’s formal hemp program, created the Indiana Hemp Advisory Committee, and — critically — classified smokable hemp flower’s manufacture, delivery, and public possession as a Class A misdemeanor. That flower ban has stood since 2019 and remains in force. Senate Bill 52 (2018), signed by Gov. Eric Holcomb on March 21, 2018, opened low-THC CBD oil access to all Indiana adults (previous 2017 law was limited to epilepsy patients). Between 2019 and 2024, hemp-derived delta-9 THC beverages, gummies, and delta-8 products proliferated at Indiana convenience stores, gas stations, smoke shops, CBD stores, and online, all operating under Farm Bill authority. The 2023 layer of enforcement uncertainty came from Attorney General Todd Rokita’s Official Opinion 2023-1, which declared delta-8 THC a Schedule I controlled substance under Indiana law based on two theories: (1) that Indiana law does not distinguish THC variants by source, and (2) that delta-8 requires chemical processing to produce commercially. AG opinions are guidance to law enforcement and prosecutors, not enforceable law — but they create meaningful enforcement risk and shape retailer behavior. Senate Bill 478 (2025), sponsored during the 2025 session, was the most significant Indiana hemp law since 2018-19. Effective July 1, 2025 (with additional provisions activating January 1, 2026), SB 478 created a comprehensive regulatory framework: mandatory product registration with the Indiana Alcohol & Tobacco Commission (ATC); manufacturer permits with an Indiana-only production requirement; a Craft Hemp Retail Permit for sellers of intoxicating cannabinoid products; child-resistant packaging; advertising restrictions to prevent youth appeal; and expanded ATC enforcement authority. Notably, SB 478 did NOT set explicit numeric per-container mg caps — that was left for future rulemaking or legislation. In 2024, a statewide police sweep seized products from 57 retailers for labeling violations, previewing the ATC-led enforcement to come. Senate Bill 250 (2026), sponsored by Sen. Aaron Freeman (R-Indianapolis) — who told committee ‘I’d rather eliminate all these things from the planet, period, but this is what’s possible’ — would have adopted the federal Section 781 framework four months ahead of federal effective date. Key provisions: redefine hemp as ≤0.3% total THC (not just delta-9); cap finished products at 0.4mg total THC per container; ban synthetic cannabinoids (delta-8, delta-10); establish 21+ age gate; and take effect July 2026. The Indiana Senate passed SB 250 by a decisive 35-13 vote. In the House, Rep. Garrett Bascom, the House sponsor, declined to call the bill for a second-reading vote before the February 24, 2026 crossover deadline, stating he did not believe there were enough votes. The bill died. A last-ditch effort to insert SB 250’s language into Senate Bill 144 during conference committee also failed — lawmakers from all four caucuses agreed to remove the hemp ban language from the final conference committee report on February 27, 2026, the session’s final day. Sen. Freeman was publicly bitter: ‘Another example of why we should be a unicameral Legislature.’ The Indiana Attorney General’s office publicly supported SB 250, arguing that failure to act would leave Indiana’s policy less stringent than federal law and ‘equate to Indiana being a legal cannabis market.’ Industry advocates (Midwest Hemp Council, 3Chi, Justin Swanson) argued the bill would devastate Indiana’s hemp market. For the federal cliff on November 12, 2026, Indiana enters with no state-level pre-alignment: SB 478 gives ATC regulatory infrastructure but no mg caps matching Section 781. Federal Section 781 will directly reshape the market; expect renewed legislative efforts in 2027. Indiana has no medical or adult-use cannabis program; recreational and medical marijuana remain fully illegal. Notably, hemp beverages have a significant Indiana industrial footprint — several major national brands including Floral Beverages source hemp from Indiana family farms.