Cannabidiol, commonly referred to as CBD, is derived from marijuana and hemp and is believed to have therapeutic benefits, but it lacks the stuff that will get you high.
Holcomb signed the bill Wednesday. He says the bill provides much needed clarity, with labeling requirements and limiting to 0.3 percent the amount of cannabis' psychoactive ingredient in CBD products.
"Indiana lawmakers delivered a bill that ensures Hoosiers who benefit from CBD oil can access it," he says.
Last year lawmakers passed a similar law allowing people with some types of epilepsy to use CBD oil, but confusion over the law led to a state crackdown.
The new law takes effect July 1.