It also sets out requirements on advertising, age limits, packaging, testing, and licensing.
By Leslie Bonilla-Muñiz, Indiana Capital Chronicle
Legislation regulating a marijuana-like drug already available throughout Indiana inched closer to reality Wednesday, after clearing its third committee vote—and another round of revisions—in the House. The bill will now be brought to the floor of the House.
Delta-9 tetrahydrocannabinol, the major psychoactive component in marijuana, remains illegal in Indiana. Delta-8 THC is the fastest-growing business.
Attempts to regulate the isomer have failed repeatedly, typically in the Senate. But when Senate Bill 478 crossed out of that chamber, House lawmakers got to work.
Committees focused on commerce and finance vetted the measure, making substantive changes each time. The House Courts and Criminal Code Committee took its turn on Wednesday. They approved another round of changes to the measure, intended to win Senate approval and prevent potentially messy negotiations.
Jake Teshka (R-North Liberty) told the committee that he was one of those who thought that the current status quo was unacceptable. The committee was told that the bill needed to be in a state where it could get Senate approval.
Senate Bill 478 outlines advertising, age limit, licensing, packaging and testing requirements, as well as other conditions for hemp-derived products. Indiana Alcohol and Tobacco Commission gains regulatory control over industry.
A major amendment, taken by consent on Wednesday, sets a cap on the number of retail permits at 9,400. Chris Serrack, the commission’s deputy director, said that’s an estimate of how many retailers carry the products today—about 75 percent of the current 12,000 tobacco certificate holders. According to Serrack, the calculations do not include those who have alcoholic beverages on premises only.
It would be in direct contrast to the model of alcohol licenses based on population. Doing that for delta-8 would be “burdensome,” per Serrack, because it requires auctions and records-keeping.
Plusieurs committee members worried that the combination of these factors could lock out existing businesses selling the products.
This amended law also prohibits the commission from granting permits to drugstores or grocery stores that are larger than 2,500 sq. ft. This legislation restricts eligibility to convenience shops and existing alcoholic beverage licensees.
When asked why, Teshka told the committee, “Again…my interest here is that we get a concurrence in the Senate.”
He explained that they wanted to “limit the proliferation” of such products. Where they are sold is the place we need to keep them.
One provision will require that all invoices generated by craft hemp be kept and made available to commission inspectors. The bill also includes penalties for “adulterated products” that contain illegal substances, and a ban on driving while under the influence.
This amendment removed the tax language that was added by House Ways and Means Committee last week. Teshka explained that this provision would be relocated because the House must pass new legislation if it is to include taxes.
Rep. Matt Pierce (D-Bloomington) highlighted the third and rare round of committee screening when he questioned Serrack on the new sanctions.
Pierce joked, “I have a question about penalties since that is what I think this committee should be most concerned with.” Was it you who decided what penalty to impose?
Serrack confirmed his agency’s involvement and said that the sanctions were similar to existing alcohol laws.
Teshka had earlier indicated that a third meeting wasn’t the original plan.
“I appreciate you all. “I know that we are nearing the end. [of the legislative session] “We added a meeting that was not on your schedule before to the deadline of Thursday for hearings,” he said, addressing lawmakers one day before this deadline.
Rep. Wendy McNamara said to Capital Chronicle Senate Bill 488, which would have created a new punishment structure, was sent back to her Committee. She told the Capital Chronicle that any new felonies usually come her way.
Committee advanced legislation with a vote of 9-3. All three Republicans cast “no” ballots.
The bill then goes to the House for possible amendments and a vote. The Senate would need to agree with the House’s many changes if they didn’t. Both chambers will then have to work together on a final draft.
Indiana Capital Chronicle was the first to publish this article.
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Kimzy Nanney provided the photo.