§ 15-15-13-9 — Hemp seed; seed distributor permit; records; audit; inspections; license revocation; detention of crops; cost of testing

(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 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) A person who sells agricultural hemp seed to a grower must be
a seed distributor who has a permit under IC 15-15-1-34.
(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) 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 hemp crop during the
crop's growth phase and take a representative composite sample for
field analysis. If a crop contains an average
delta-9-tetrahydrocannabinol (THC) concentration exceeding
three-tenths of one percent (0.3%) on a dry weight basis, the state seed
commissioner may detain, seize, or embargo the crop.
(e) The state seed commissioner may revoke a license issued under
this chapter to a person that fails to cooperate with:
(1) the state seed commissioner;
(2) the state police;
(3) a federal law enforcement agency; or
(4) a local law enforcement agency;
in an inspection, or in the taking of a sample, under subsection (d).
(f) A failure to cooperate described in subsection (e) constitutes
probable cause for the state seed commissioner, state police, federal
law enforcement agency, or local law enforcement agency to search the
premises of the licensee's hemp operation.
(g) If the state police department, a federal law enforcement agency,
or a local law enforcement agency cooperates with the state seed
commissioner in the detention, seizure, or embargo of a crop under this
section:
(1) the state police department, federal law enforcement agency,
or local law enforcement agency; and
(2) any officer or employee of the state police department, federal
law enforcement agency, or local law enforcement agency who is
involved in the detention, seizure, or embargo;
is immune from civil liability for the detention, seizure, or embargo.
(h) The state seed commissioner may order a hemp crop that is
detained, seized, or embargoed for noncompliance with this chapter to
be destroyed by the owner. However, except as prohibited by federal
law, the grower may appeal to the state seed commissioner for the
hemp crop to be diverted to a willing licensed processor for processing
and sale for industrial use. A hemp crop that is detained, seized, or
embargoed may not be used for cannabidiol, other extracts, oil, food,
or cosmetic products that are used for humans or animals.
(i) A grower shall reimburse the state seed commissioner for the
cost of testing conducted on the grower's crop under this section.

Legislative History

As added by P.L.165-2014, SEC.1. Amended by P.L.139-2016, SEC.1; P.L.190-2019, SEC.10.