BY: LESLIE BONILLA MUÑIZ– Indiana Capital Cronicle

The legislation matches a federal measure some advocates predict will ‘decimate’ the industry — then sets out regulations for what’s left.

Indiana lawmakers seek to align state law with a recently enacted federal ban on intoxicating and synthetic hemp products — over opposition from the burgeoning delta-8 industry.

The lengthy, complex legislation also would regulate less potent products that do pass legal muster.

But, “there’s going to be no demand,” for products under the proposed threshold, asserted Justin Swanson, representing the Midwest Hemp Council and 3Chi, a THC product retailer.

THC is the active ingredient in marijuana.

Sen. Aaron Freeman, R-Indianapolis, confessed in committee Thursday that he’d rather “eliminate all these things from the planet, period,” but that his proposal “is what’s possible.”

His Senate Bill 250 would mimic Congress’ closure of what Freeman described as the “Farm Bill loophole,” referring to the 2018 legislation that defined legal hemp as any part of the plant containing less than 0.3% delta-9 THC by dry weight. That definition allowed products containing delta-8, THCA and other intoxicating cannabinoids to proliferate, including in Indiana.

A stopgap federal funding law enacted in November specifies that all forms of THC count. It also caps THC products to just 0.4 milligrams per container, and outright bans lab-made ones.

“I think (that) is what was intended by the federal government in 2018 when they first passed the Farm Bill; I think it’s what everybody had in mind when that language was then copied here in Indiana,” said Chris Daniels, the senior traffic safety resource prosecutor at the Indiana Prosecuting Attorneys Council. “… The goal was very low potency THC.”

One industry group supported the changes.

“It is imperative that Indiana act during the 2026 legislative session to harmonize with federal policy,” said Cory Harris, representing the American Trade Association for Cannabis and Hemp. “Failure to do so will mean that Indiana’s policy will be less stringent than federal law, and therefore equate to Indiana being a legal cannabis market.”

The federal provisions are set to take effect in November. Freeman’s bill replicates those provisions, but sets an effective date four months earlier, in July.

“It’s premature for Indiana to codify federal law that will decimate an entire industry in the state,” Swanson said. “The landscape is still not settled.”

He noted U.S. Rep. Jim Baird — a Republican representing Indiana — filed a proposal pushing the federal ban’s effective date back to 2028.

President Donald Trump has also signed an executive order to speed up reclassification of marijuana as a less dangerous, less restricted drug.

Swanson said his clients do support a “responsible regulatory framework,” telling lawmakers that “the status quo is not acceptable for anybody.”

Freeman’s bill spends dozens of pages regulating the low-THC “hemp-derived cannabinoid products” that would be expressly legalized — notably, with a long-sought 21-plus age requirement.

It also puts Indiana’s Alcohol and Tobacco Commission in charge of regulating the industry that remains, implementing four types of permits for manufacturers, distributers, retailers and carriers. They’d be banned from advertising within 1,000 feet of schools, playgrounds and more, with retailers barred from operating within the same radius.

Retailers wouldn’t be able to deliver their products or let customers consume them on-site. The sale of products online would also be illegal — another sticking point for advocates.

Sun King Brewery CEO and Co-Founder Dave Colt said his homegrown company spent months and more than $100,000 dollars on equipment, research and development for its THC seltzers. Amid a nationwide downturn in alcohol sales, the seltzers have allowed Sun King to retain its staff and even grow.

“We also make products for at least a dozen small Hoosier businesses as well. Without this additional revenue, we would be forced to lay people off and dramatically downsize our business,” Colt testified. “We do believe strongly the industry wants clear regulations that meet consumer demand.”

Other provisions deal with containers, labeling and testing.

A fiscal impact analysis by the nonpartisan Legislative Services Agency estimated a half-million-dollar financial hit annually to the ATC to administer and enforce the proposal. The agency will need to hire at least one additional excise officer in each of the six districts plus Marion County to investigate complaints associated with the new regulatory framework.

There will be additional expenditures for law enforcement training, purchases, and online databases, the analysis noted.

Costs could be offset from the permit and other fees collected. The measure would direct 70% of the earnings to ATC administrative efforts, 20% to enforcement work, 5% to the state’s 988 suicide and crisis hotline and 5% to the general fund.

If all tobacco sales certificate holders apply for a retail permit, for instance, their application fees would generate $2.1 million. If they’re all approved, the state would earn an additional $4.6 million, per LSA’s analysis.

The state’s seed commissioner would handle permitting for hemp growers and handlers.

Freeman also included a sentence preventing Indiana Code from immediately reflecting federal reclassification of marijuana, if that goes through.

“This bill simply says that we would not automatically follow what the federal government does, that we would decide, 150 of us — that we would make that decision, not the federal government for us,” Freeman told his colleagues.

The Senate Commerce and Technology committee also consented to an amendment removing an excise tax, since any provisions raising revenue must begin in the House.

The revised legislation was approved on a party-line vote of 7-2, but it must next get through the finance-focused Senate Appropriations committee before heading to the chamber’s floor.

Previous efforts to both ban and regulate intoxicating hemp products have failed.

Asked about this year’s chances, Senate Republican leader Rodric Bray told reporters, “I don’t have that crystal ball,” but added, “I think the bill right now is in pretty good shape.”

“I think we’d just like, in Indiana, some certainty as to these products so that the people manufacturing and selling them know kind of what our laws are,” he continued, “and also to build in some really significant protections for, in particular, our youth across the state.”

BY: NIKI KELLY, INDIANA CAPITAL CHRONICLE

Gov. Mike Braun delivered a State of the State speech Wednesday night that was heavy on achievements, light on new goals and with a few football callouts.

“With our strong business environment, it’s not surprising that another organization has noticed that Indiana is open for business: the Chicago Bears,” he said. “We are working hard to bring the Chicago Bears to the Hoosier State.”

But most of the address focused on affordability for Hoosiers — from electric bills and rent to property taxes and child care.

“Affordability is our highest priority,” Braun told General Assembly members gathered in the Indiana House chamber.

“Together,” he continued, “we can make Indiana the state where your dollar goes further, where opportunity abounds for all who are willing to work hard, and where every Hoosier worker can build the life they deserve.”

Senate President Pro Tem Rodric Bray called it a good speech.

“He talked about some of the highlights and the really good story that Indiana has to tell,” he said.

Braun didn’t mention the bitter December redistricting battle that has strained some relationships in the Statehouse. Braun specifically said Bray and other Senate Republicans who opposed redistricting should lose their seats.

“There’s lots of hard things that happen in this place,” Bray said after Braun’s speech. “We are going to continue to come to work and do good work for Hoosiers, and look forward to working with the governor for that and with the House as well.”

Democrats pointed to numerous ways that Republicans are now hopping on the affordability bandwagon, giving examples of bills that the Democratic caucuses have offered in recent years but that Republicans rejected.

“If Statehouse Republicans wanted to lower costs, they would have already done that by now,” said House Democratic Leader Phil GiaQuinta. “They’ve been in charge for the past 20 years, and Gov. Braun is catching up to the fact that Hoosiers are struggling.”

Backing these bills

Braun didn’t unveil a typical legislative agenda for his office, instead simply announcing support for several bills already moving through the legislative process.

For instance, he said he supports Republican Rep. Alaina Shonkwiler’s bill to protect Hoosiers from unnecessary utility rate hikes.

While on the topic of energy, Braun issued a full-throated declaration of support for data centers. The behemoth centers have roiled numerous Indiana communities with Hoosiers concerned about electricity and water usage.

“AI is going to be key to the jobs and wages of the future, but data centers can’t stick Hoosiers with the power bill,” Braun said. “Companies that want big power in Indiana should pay their own way.”

That goal isn’t fully codified but rather an informal policy in negotiations for state support.

He specifically hailed Amazon building a $1.5 billion data center in northwest Indiana, saying “they’re going to pay for every cent of their power needs, and then some.”

Moving to homeownership, Braun said he supports a bill from GOP Rep. Doug Miller, R-Elkhart, to remove government hurdles and make it easier for Hoosiers to chase the American dream of owning a home.

“Home prices have surged because we aren’t building enough, and unnecessary regulations are driving up costs,” he said.

He also announced support for bills to limit cellphone use in schools; ensure that parents have veto power over their kids’ creating social media accounts; curb homelessness in public spaces and a constitutional change to make it easier to hold accused criminals in jail pre-trial.

Braun said affordable child care is needed to grow the Indiana economy and help Hoosiers get better jobs. But that specific priority item will have to wait a year.

“I look forward to digging in during the budget session (in 2027) on what we can do to invest in lowering child care costs,” he said. “I would like to see a program where businesses have skin in the game to help grow child care programs.”

But under his watch, the administration has cut reimbursement rates and capped child care vouchers for low-income parents. That has led to waitlists and day care centers closing around the state.

Senate Democratic Leader Shelli Yoder, of Bloomington, said child care deserts are spreading and parents are on waitlists for years.

“Costs are higher. Workers are leaving jobs they want because care does not exist. That did not happen by accident. It happened because child care was treated as an afterthought,” she said. “Child care is not an option, it’s an economic infrastructure.”

But GOP House Speaker Todd Huston pushed back, saying Republicans have passed measures to improve child are options, such as deregulation and tax credits for businesses to get involved.

“The best thing we can do is help support more supply and the government’s not going to be the best avenue to do that,” Huston said. “The best avenue to do that is reduce the regulations and let a lot of these folks that used to provide child care provide child care without having the burden of of all these government regulations that just do nothing but drive up costs.”

Kudos to Indiana

Braun also took time to list key accomplishments for his administration during his first year in office.

He reminded Hoosiers that he pushed a property tax bill that will save taxpayers $1.5 billion over the next three years. He has no plans for more property tax changes this year.

Braun pointed to cuts in state government that are making state agencies leaner and more efficient. He specifically applauded Indiana’s Medicaid program for finding $465 million in savings.

These savings have come through increased eligibility checks, tightened regulations and cuts to some programs.

“We’re continuing to deliver high-quality essential services that Hoosiers rely on, while you keep more of your money — because it’s not ours, it’s yours,” Braun said.

The education front also provided key highlights, with increased reading scores, a record-high graduation rate and new school accountability grades coming soon.

Braun also noted that Indiana’s real GDP is growing faster than the national rate and listed a string of big jobs announcements from recent months.

“Project after project, industry after industry, the story is the same: Indiana is the Midwest’s growth engine for more jobs and bigger paychecks,” he said.

Additionally, the governor listed public safety wins and efforts at retraining Hoosier workers.

Lawmakers gave two standing ovations for law enforcement and also included a “Hoo Hoo Hoo Hoosiers” chant at one point.

Braun ended the speech with a nod to the Indiana Hoosiers playing for the national college football championship on Monday night.

“My administration has people from up and down the state. We have Butler fans, Notre Dame fans, Purdue fans … but on Monday I expect to see all of them wearing cream and crimson. Go Hoosiers!”

He also said a 9-year-old from Shoals, Jack Gibson, asked whether the governor could delay the start of school on Tuesday morning so he could stay up late and watch the Hoosiers win on Monday.

“I like the sound of that,” Braun said. “I’ll leave it up to each school district to decide, but I think that sounds like a good idea.”