2014 Indiana Code TITLE 15. AGRICULTURE AND ANIMALS ARTICLE 15. HORTICULTURE PRODUCTS CHAPTER 13. INDUSTRIAL HEMP
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IC 15-15-13
Chapter 13. Industrial Hemp
IC 15-15-13-0.5
Administration of chapter
Sec. 0.5. The state seed commissioner shall administer this
chapter.
As added by P.L.165-2014, SEC.1.
IC 15-15-13-1
Application of chapter
Sec. 1. Nothing in this chapter authorizes any person to violate
any federal law or regulation.
As added by P.L.165-2014, SEC.1.
IC 15-15-13-2
"Agricultural hemp seed"
Sec. 2. As used in this chapter, "agricultural hemp seed" means
Cannabis sativa seed that meets any labeling, quality, and other
standards set by the state seed commissioner and that is intended for
sale or is sold to, or purchased by, licensed growers for planting.
As added by P.L.165-2014, SEC.1.
IC 15-15-13-3
"Crop"
Sec. 3. As used in this chapter, "crop" means any industrial hemp
grown under a single license.
As added by P.L.165-2014, SEC.1.
IC 15-15-13-4
"Grower"
Sec. 4. As used in this chapter, "grower" means:
(1) an individual, a partnership, a company, or a corporation
that produces industrial hemp for commercial purposes; or
(2) a person, as part of an industrial hemp research program
conducted by a state educational institution (as defined by
IC 21-7-13-32).
As added by P.L.165-2014, SEC.1.
IC 15-15-13-5
"Handler"
Sec. 5. As used in this chapter, "handler" means an individual, a
partnership, a company, or a corporation that receives industrial
hemp for scientific research, or for processing into commodities,
products, or agricultural hemp seed.
As added by P.L.165-2014, SEC.1.
IC 15-15-13-6
"Industrial hemp"
Sec. 6. As used in this chapter, "industrial hemp" means:
(1) all nonseed parts and varieties of the Cannabis sativa plant,
whether growing or not, that contain a crop wide average
tetrahydrocannabinol (THC) concentration that does not exceed
the lesser of:
(A) three-tenths of one percent (0.3%) on a dry weight basis;
or
(B) the percent based on a dry weight basis determined by
the federal Controlled Substances Act (21 U.S.C. 801 et
seq.); or
(2) any Cannabis sativa seed that is:
(A) part of a growing crop;
(B) retained by a grower for future planting; or
(C) for processing into, or use as, agricultural hemp seed.
The term does not include industrial hemp commodities or products.
As added by P.L.165-2014, SEC.1.
IC 15-15-13-7
Industrial hemp regulations; rules; licenses; license applications
Sec. 7. (a) Subject to section 15 of this chapter, the production of,
possession of, scientific study of, and commerce in industrial hemp
is authorized in Indiana. Industrial hemp is an agricultural product
that is subject to regulation by the state seed commissioner. The state
seed commissioner shall adopt rules to oversee the licensing,
production, and management of:
(1) industrial hemp; and
(2) agricultural hemp seed;
to ensure integrity of audits and security of field sites of each
commodity.
(b) All growers and handlers must have an industrial hemp license
issued by the state seed commissioner. Growers and handlers
engaged in the production of agricultural hemp seed must also have
an agricultural hemp seed production license.
(c) An application for an industrial hemp license or agricultural
hemp seed production license must include the following:
(1) The name and address of the applicant.
(2) The name and address of the industrial hemp operation of
the applicant.
(3) The global positioning system coordinates and legal
description of the property used for the industrial hemp
operation.
(4) If the industrial hemp license or agricultural hemp seed
production license application is made by a grower, the acreage
size of the field where the industrial hemp will be grown.
(5) A statement signed by the applicant, under penalty of
perjury, that the person applying for the industrial hemp license
or agricultural hemp seed production license has not been
convicted of a drug related felony or misdemeanor in the
previous ten (10) years.
(6) A written consent allowing the state police department to
conduct a state or national criminal history background check.
(7) A written consent allowing the state police department, if a
license is issued to the applicant, to enter the premises on which
the industrial hemp is grown to conduct physical inspections of
industrial hemp planted and grown by the applicant, and to
ensure the plants meet the definition of industrial hemp as set
forth in section 6 of this chapter. Not more than two (2)
physical inspections may be conducted under this subdivision
per year, unless a valid search warrant for an inspection has
been issued by a court of competent jurisdiction.
(8) A nonrefundable application fee, which must include the
amount necessary to conduct a state or national criminal history
background check, in an amount determined by the state seed
commissioner.
(9) Any other information required by the state seed
commissioner.
As added by P.L.165-2014, SEC.1.
IC 15-15-13-8
Processing applications; issuance of license; renewal
Sec. 8. (a) Each license application received under this chapter
must be processed as follows:
(1) Upon receipt of a license application, the state seed
commissioner shall forward a copy of the application to the
state police department. The state police department shall do the
following:
(A) Perform a state or national criminal history background
check of the applicant.
(B) Determine if the requirements under section 7(c)(5) of
this chapter concerning prior criminal convictions have been
met.
(C) Return the application to the state seed commissioner
along with the state police department's determinations and
a copy of the state or national criminal history background
check.
(2) The state seed commissioner shall review the license
application returned from the state police department.
(b) If the state seed commissioner determines that all the
requirements under this chapter have been met and that a license
should be granted to the applicant, the state seed commissioner shall
approve the application for issuance of a license.
(c) An industrial hemp license or agricultural hemp seed
production license is valid for a one (1) year term unless revoked. An
industrial hemp license or agricultural hemp seed production license
may be renewed in accordance with rules adopted by the state seed
commissioner and is nontransferable.
As added by P.L.165-2014, SEC.1.
IC 15-15-13-9
Hemp seed; records; audit; inspections
Sec. 9. (a) An agricultural hemp seed production license issued
under this chapter authorizes a grower or handler to produce and
handle agricultural hemp seed for sale to licensed industrial hemp
growers and handlers. A seller of agricultural hemp seed shall ensure
that the seed complies with any standards set by the state seed
commissioner. The state seed commissioner shall make available to
growers information that identifies sellers of agricultural hemp seed.
(b) Subject to rules adopted by the state seed commissioner, a
grower may retain seed from each industrial hemp crop to ensure a
sufficient supply of seed for that grower for the following year. A
grower does not need an agricultural hemp seed production license
in order to retain seed for future planting. Seed retained by a grower
may not be sold or transferred and is not required to meet the state
seed commissioner's agricultural hemp seed standards.
(c) All growers and handlers must keep records in accordance
with rules adopted by the state seed commissioner. Upon at least
three (3) days notice, the state seed commissioner may audit the
required records during normal business hours. The state seed
commissioner may conduct an audit for the purpose of ensuring
compliance with:
(1) this chapter;
(2) rules adopted by the state seed commissioner; or
(3) industrial hemp license or agricultural hemp seed production
license requirements, terms, and conditions.
(d) In addition to an audit conducted in accordance with
subsection (c), the state seed commissioner may inspect
independently, or in cooperation with the state police department, a
federal law enforcement agency, or a local law enforcement agency,
any industrial hemp crop during the crop's growth phase and take a
representative composite sample for field analysis. If a crop contains
an average tetrahydrocannabinol (THC) concentration exceeding the
lesser of:
(1) three-tenths of one percent (0.3%) on a dry weight basis; or
(2) the percent based on a dry weight basis determined by the
federal Controlled Substance Act (21 U.S.C. 801 et seq.);
the state seed commissioner may detain, seize, or embargo the crop.
As added by P.L.165-2014, SEC.1.
IC 15-15-13-10
Fees
Sec. 10. The amount of any fees charged growers and handlers by
the state seed commissioner under this chapter must be sufficient to
cover the cost of the administration of this chapter, including the cost
of conducting audits and testing.
As added by P.L.165-2014, SEC.1.
IC 15-15-13-11
Transporting industrial hemp
Sec. 11. Only an industrial hemp licensee, the licensee's designee,
or the licensee's agents may be permitted to transport industrial hemp
off a production site. When transporting industrial hemp off the
production site, the industrial hemp licensee, designee, or agent shall
have in the licensee's, designee's, or agent's possession the licensing
documents from the state seed commissioner evidencing that the
industrial hemp is from certified seed produced by a licensed grower.
As added by P.L.165-2014, SEC.1.
IC 15-15-13-12
State seed commissioner duties
Sec. 12. The state seed commissioner is responsible for the
following:
(1) Monitoring the industrial hemp grown by any license holder.
(2) Conducting random testing of the industrial hemp for
compliance with tetrahydrocannabinol (THC) levels.
(3) Establishing necessary testing criteria and protocols.
(4) Establishing the minimum number of acres to be planted
under each license issued under this chapter.
As added by P.L.165-2014, SEC.1.
IC 15-15-13-13
Penalties
Sec. 13. (a) In addition to any other liability or penalty provided
by law, the state seed commissioner may revoke or refuse to issue or
renew an industrial hemp license or an agricultural hemp seed
production license and may impose a civil penalty for a violation of:
(1) a license requirement;
(2) license terms or conditions; or
(3) a rule relating to growing or handling industrial hemp.
(b) The state seed commissioner may not impose a civil penalty
under this section that exceeds two thousand five hundred dollars
($2,500).
(c) The state seed commissioner may revoke or refuse to issue or
renew an industrial hemp license or an agricultural hemp seed
production license for a violation of any rule of the state seed
commissioner that pertains to agricultural operations or activities
other than industrial hemp growing or handling.
As added by P.L.165-2014, SEC.1.
IC 15-15-13-14
Rules
Sec. 14. The state seed commissioner shall adopt rules under
IC 4-22-2 to implement and administer this chapter.
As added by P.L.165-2014, SEC.1.
IC 15-15-13-15
Federal waivers; implementation of chapter
Sec. 15. (a) Notwithstanding any other law, the state seed
commissioner may not grant any license until the state seed
commissioner has secured any necessary permissions, waivers, or
other form of legal status by the United States Drug Enforcement
Agency or other appropriate federal agency concerning industrial
hemp.
(b) The state seed commissioner shall apply for any necessary
permissions, waivers, or other forms of legal status by the United
States Drug Enforcement Agency or other appropriate federal agency
that are necessary to implement this chapter before January 1, 2015.
(c) The state seed commissioner may not implement a waiver
under this section until the state seed commissioner files an affidavit
with the governor attesting that the federal permission or waiver
applied for under this section is in effect. The state seed
commissioner shall file the affidavit under this subsection not later
than five (5) days after the state seed commissioner is notified that
the waiver is approved.
(d) If the state seed commissioner receives a waiver permission
under this section from all the appropriate federal agencies and the
governor receives the affidavit filed under subsection (c), the state
seed commissioner shall implement this chapter, subject to the terms
and conditions of the permission or waiver received, not more than
sixty (60) days after the governor receives the affidavit.
As added by P.L.165-2014, SEC.1.
IC 15-15-13-16
Fees collected; expenditures; financial report; excess funds
Sec. 16. (a) The state seed commissioner shall pay all fees
collected under this chapter to the treasurer of Purdue University.
(b) The board of trustees of Purdue University shall expend the
fees on proper vouchers filed with the treasurer of Purdue University.
The treasurer shall pay vouchers for the following expenses:
(1) The employment of inspectors and seed analysts.
(2) Procuring samples.
(3) Printing bulletins giving the results of inspection.
(4) Any other expenses of the Purdue University agricultural
programs authorized by law and for implementing this chapter.
(c) The dean of agriculture of Purdue University shall make and
submit a financial report to the governor in such form as the state
board of accounts requires, showing the total receipts and
expenditures of all fees received under this chapter.
(d) Excess funds from the collection of fees under this chapter are
subject to IC 15-16-2-36.
As added by P.L.165-2014, SEC.1.
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