INDIANAPOLIS, IND. (WOWO) Indiana lawmakers approved a first committee vote on legislation that would ban intoxicating hemp products, including delta-8 THC drinks, while regulating lower-potency products, the Indiana Capital Chronicle reports. Senate Bill 250 aims to align state law with federal rules that limit THC content and ban synthetic THC, setting an effective date in July—four months earlier than the federal provisions.

The bill establishes a permitting system for manufacturers, distributors, retailers, and carriers of legal low-THC products, assigns the Alcohol and Tobacco Commission to enforce the regulations, and prohibits advertising near schools and playgrounds. Online sales and on-site consumption would also be banned.

Advocates like Justin Swanson, representing the Midwest Hemp Council and 3Chi, warn the legislation could decimate the delta-8 industry in Indiana, potentially harming small businesses and limiting consumer demand. Sun King Brewery CEO Dave Colt told the Indiana Capital Chronicle that THC seltzers support multiple Hoosier businesses and help retain employees.

The bill also addresses labeling, testing, and container rules, with a fiscal impact analysis estimating a half-million-dollar cost to administer the program, offset by permit and licensing fees. Revenues would support enforcement, administrative costs, and the state’s 988 suicide and crisis hotline.

Senator Aaron Freeman, the bill’s sponsor, told the Indiana Capital Chronicle the legislation aims to protect youth while providing certainty for businesses. The revised measure passed committee on a party-line vote and will now move to the Senate Appropriations Committee before a full floor vote.