INDIANAPOLIS, IND. (WOWO) Legislation that would significantly restrict intoxicating hemp products in Indiana has advanced out of its first Senate committee, according to Indiana Capital Chronicle.
The proposal, Senate Bill 250, would align Indiana law with a recently enacted federal ban targeting THC and synthetic hemp products. Lawmakers say the bill is designed to close what supporters describe as a loophole created by the 2018 federal Farm Bill, which allowed products containing delta-8, THCA and other intoxicating cannabinoids to be sold legally.
Indiana Capital Chronicle reports the bill would also establish a regulatory framework for lower-potency hemp-derived cannabinoid products that remain legal. Those products would be limited to adults 21 and older and regulated by the Indiana Alcohol and Tobacco Commission through a new permit system for manufacturers, distributors, retailers and carriers.
The legislation would prohibit online sales, on-site consumption and delivery of hemp-derived cannabinoid products. Retailers would also be barred from operating or advertising within 1,000 feet of schools, playgrounds and similar locations.
Senator Aaron Freeman, a Republican from Indianapolis, told lawmakers the bill reflects what is currently achievable, even as federal policy on marijuana continues to evolve. Freeman’s proposal would take effect in July, four months before the federal provisions are scheduled to begin.
Hemp industry representatives testified in opposition, warning the measure could sharply reduce or eliminate demand for many existing products. Business owners and trade groups argued the industry supports regulation but not an outright ban on most THC-containing items.
A fiscal analysis by the Legislative Services Agency estimates the bill would cost the state about $500,000 annually to administer and enforce, though permit fees could offset those expenses and generate additional revenue.
The Senate Commerce and Technology Committee approved the bill on a 7–2 party-line vote after removing a proposed excise tax. The legislation now heads to the Senate Appropriations Committee for further review.
