Indiana House Passes Landmark Bill to Regulate Delta-8 THC

16 April 2025

After years of false starts and political gridlock, Indiana is on the verge of enacting its first comprehensive regulations on Delta-8 THC, a psychoactive compound derived from hemp that has proliferated in the state’s retail landscape. Senate Bill 478, which passed the Indiana House in a 60–37 vote on April 15 after clearing the Senate, is now headed to a conference committee for final revisions before potentially being signed into law by Governor Mike Braun.

If enacted, this legislation will usher in a significant change for Indiana’s cannabis-adjacent market, aiming to rein in a rapidly growing industry that has so far operated with minimal oversight.

Why the Sudden Movement? A Mix of Public Pressure and Safety Concerns

The push to regulate Delta-8 THC intensified following a series of investigative reports that revealed some products on Indiana shelves contained illegal levels of Delta-9 THC, the main intoxicant in marijuana. Other findings showed products mislabeled or contaminated with heavy metals and pesticides, raising public health alarms.

Law enforcement agencies and prosecutors added their voices, warning of risks to minors and the inability to enforce existing laws due to regulatory ambiguity. As a result, lawmakers acted to close legal loopholes that have allowed Delta-8 products to flourish in an unregulated market.

Inside SB 478: A Regulatory Overhaul for a Grey-Market Industry

Senate Bill 478 would place Delta-8 products under the oversight of the Indiana Alcohol and Tobacco Commission, instituting a range of new requirements for retailers and manufacturers, including:

• Minimum Age: Sales to individuals under 21 would be prohibited.

• Advertising Restrictions: Marketing that appeals to or targets minors, such as candy-like branding, would be banned.

• Retailer Permits: Sellers would need to apply for a state permit, with a statewide cap of 20,000 licenses. Shops near schools would not be eligible.

• Product Testing: All Delta-8 items would need to be screened for contaminants and meet specific potency standards, with accurate labeling required.

• Penalties for Violations: Non-compliance could result in fines or criminal penalties, depending on the severity of the infraction.

This marks a major shift for Indiana, where hemp-derived cannabinoids have, until now, existed largely outside formal regulation. While the bill doesn’t legalize marijuana, it creates a structure that mirrors many aspects of regulated cannabis markets in other states.

Diverse Reactions: Support, Skepticism, and What Comes Next

The bill has earned bipartisan support, though not without controversy. Some state officials have raised concerns that regulating Delta-8 could unintentionally normalize its use or open the door to broader acceptance of psychoactive cannabis products in a state where both recreational and medical marijuana remain illegal.

Still, many lawmakers and stakeholders view the measure as a pragmatic response to a marketplace that has outpaced regulation. Supporters argue that the bill doesn’t promote use—it simply ensures that existing products meet safety standards and aren’t marketed to children.

What This Means for You

• For consumers: If you use Delta-8 products for pain, sleep, anxiety, or other reasons, the legislation aims to protect your health and safety. You can expect better labeling, cleaner products, and fewer questionable retailers.

• For retailers: New licensing and compliance requirements are coming. Those who have already invested in quality and transparency may benefit from a more level playing field, while less scrupulous sellers may be forced out.

• For researchers, advocates, and curious citizens: This is a case study in how states are grappling with the rapid evolution of cannabinoid science and commerce. Indiana’s regulatory framework may shape future discussions about medical or adult-use cannabis in the Midwest.

• For law enforcement and public health officials: SB 478 offers clear guidelines for enforcement, helping close the gap between what’s sold on the street and what the law currently addresses.

Whether this is the beginning of broader reform or a carefully measured one-off remains to be seen. What’s certain is that the days of unregulated Delta-8 in Indiana are numbered.