1. (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.

2. (b) 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. (1) this chapter;
   2. (2) rules adopted by the state seed commissioner; or
   3. (3) industrial hemp license or agricultural hemp seed production license requirements, terms, and conditions.

3. (c) In addition to an audit conducted in accordance with subsection (b), 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. (1) three-tenths of one percent (0.3%) on a dry weight basis; or

   2. (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. Amended by P.L.139-2016, SEC.1.