Indiana Senate Bill Would Legalize Recreational Marijuana, Including Licensed Sales

(Photo credit: JUVA).

An Indiana Senate bill filed this week by State Senator Rodney Pol Jr. (D) would legalize marijuana for those 21 and older and create a new state agency to regulate cultivation, processing, testing and retail sales. The legislation, Senate Bill 286, will be officially read for the first time on January 12 in the Senate Committee on Commerce and Technology. If enacted, the measure would take effect July 1, 2026.

Under the bill, adults 21 and older would be allowed to possess and purchase marijuana through state-licensed retailers, while patients with a serious medical condition could access marijuana tax-free with a physician’s certification. Adult-use possession would be capped at one ounce in any 30-day period, and home cultivation would generally be prohibited for non-patients. Medical patients, however, would be allowed to grow up to six plants for personal use under specific conditions.

The proposal would establish the Indiana Cannabis Commission as a new state agency responsible for overseeing the program. The commission would issue permits to growers, processors, testing laboratories and retailers, enforce compliance, conduct inspections and maintain a real-time tracking system designed to prevent diversion. An advisory committee made up of lawmakers, regulators, medical professionals, law enforcement and industry representatives would review the program’s effectiveness.

The bill also outlines a phased-in adult-use marijuana excise tax, starting at 1% in fiscal year 2026, increasing to 2% in 2027 and 3% in 2028 and beyond. Medical marijuana would not be subject to the excise tax, and veterans would be exempt from state sales tax on both medical and adult-use marijuana. Revenue from the excise tax would be deposited into the state’s general fund.

In addition, the legislation would establish a process to expunge past marijuana-related convictions for conduct that would become legal under the new law.