A trio of Indiana House Republicans filed legislation today that would establish a comprehensive regulatory framework for craft hemp products, including flower, beverages and low-THC hemp extracts.
The bill was introduced by Steve Bartels, Jake Teshka and Heath VanNatter, all Republicans, and has been referred to the House Committee on Public Policy. If enacted, the measure would take effect July 1, 2026.
At its core, the proposal creates a new “craft hemp” category under Indiana law and places oversight under the Indiana Alcohol and Tobacco Commission. The bill would require retailers, distributors, and manufacturers to obtain state-issued permits, with fees set at $1,000 per retail location and $5,000 for distributor and manufacturer permits. Retail permits would be capped at 20,000 statewide.
The legislation would prohibit the sale of craft hemp products to anyone under 21 and significantly increase penalties for violations involving minors. A first offense would be treated as a misdemeanor, while repeat violations or cases involving serious bodily injury or death could result in felony charges.
Retail sales would also be subject to location restrictions, including a general ban on sales within 1,000 feet of K–12 schools. However, businesses that can demonstrate they were operating before January 1, 2026, would be allowed to continue selling craft hemp even if they fall within that buffer zone.
The bill further outlines packaging, labeling, advertising, testing, and recordkeeping requirements, while granting enforcement authority primarily to Alcohol and Tobacco Commission excise officers.
The proposal would also allow certain alcohol-permitted establishments that hold a craft hemp retail permit to serve craft hemp beverages on-site, while generally prohibiting on-premises consumption at standard retail locations.
The full text of the bill can be found by clicking here.
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