Indiana 2022 Regular Session

Indiana House Bill HB1219 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2	Introduced Version
3	3	HOUSE BILL No. 1219
4	4	_____
5	5	DIGEST OF INTRODUCED BILL
6	6	Citations Affected: IC 7.1-1-3; IC 7.1-3; IC 7.1-5.
7	7	Synopsis: Beer wholesalers and mixed beverages. Provides that a beer
8	8	wholesaler may possess, transport, sell, and deliver mixed beverages
9	9	only to a person who holds certain alcohol permits. Allows a beer
10	10	wholesaler to sell, donate, transport, and deliver mixed beverages to
11	11	certain qualified organizations. Requires the alcohol and tobacco
12	12	commission to adopt certain rules regarding mixed beverages. Provides
13	13	that a beer wholesaler's bona fide regular employees may purchase
14	14	mixed beverages from the wholesaler in an amount not to exceed 18
15	15	liters at any one time. Provides that a beer wholesaler permittee may
16	16	not extend credit for the sale of mixed beverages. Provides that a beer
17	17	wholesaler that wholesales mixed beverages may not be required to
18	18	apply for or maintain a liquor wholesaler's permit or to pay a fee to
19	19	wholesale mixed beverages. Provides that a beer wholesaler that
20	20	wholesales mixed beverages may keep or store mixed beverages at
21	21	certain premises. Modifies the definition of "liquor" and adds a
22	22	definition of "mixed beverage".
23	23	Effective: July 1, 2022.
24	24	Jeter, Steuerwald, Moed
25	25	January 6, 2022, read first time and referred to Committee on Public Policy.
26	26	2022 IN 1219—LS 7128/DI 107 Introduced
27	27	Second Regular Session of the 122nd General Assembly (2022)
28	28	PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
29	29	Constitution) is being amended, the text of the existing provision will appear in this style type,
30	30	additions will appear in this style type, and deletions will appear in this style type.
31	31	Additions: Whenever a new statutory provision is being enacted (or a new constitutional
32	32	provision adopted), the text of the new provision will appear in this style type. Also, the
33	33	word NEW will appear in that style type in the introductory clause of each SECTION that adds
34	34	a new provision to the Indiana Code or the Indiana Constitution.
35	35	Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
36	36	between statutes enacted by the 2021 Regular Session of the General Assembly.
37	37	HOUSE BILL No. 1219
38	38	A BILL FOR AN ACT to amend the Indiana Code concerning
39	39	alcohol and tobacco.
40	40	Be it enacted by the General Assembly of the State of Indiana:
41	41	1 SECTION 1. IC 7.1-1-3-21 IS AMENDED TO READ AS
42	42	2 FOLLOWS [EFFECTIVE JULY 1, 2022]: Sec. 21. Liquor. The term
43	43	3 "liquor" means an alcoholic beverage containing alcohol obtained by
44	44	4 distillation and includes a mixed beverage. The term also means a
45	45	5 wine that contains twenty-one per cent percent (21%), or more, of
46	46	6 alcohol reckoned by volume. However, the term does not include
47	47	7 industrial alcohol.
48	48	8 SECTION 2. IC 7.1-1-3-26.2 IS ADDED TO THE INDIANA
49	49	9 CODE AS A NEW SECTION TO READ AS FOLLOWS
50	50	10 [EFFECTIVE JULY 1, 2022]: Sec. 26.2. "Mixed beverage" means a
51	51	11 prepared cordial, cocktail, or highball that is in a can or container
52	52	12 and is a mixture of:
53	53	13 (1) whiskey, neutral spirits, brandy, gin, or another distilled
54	54	14 spirit; and
55	55	15 (2) carbonated or plain water, pure juice from a flower or
56	56	16 plant, or other flavoring materials;
57	57	17 that is suitable for immediate consumption and contains not less
58	58	2022 IN 1219—LS 7128/DI 107 2
59	59	1 than one-half of one percent (0.5%) of alcohol by volume and not
60	60	2 more than twenty-one percent (21%) of alcohol by volume.
61	61	3 SECTION 3. IC 7.1-3-2-9 IS AMENDED TO READ AS
62	62	4 FOLLOWS [EFFECTIVE JULY 1, 2022]: Sec. 9. An out-of-state
63	63	5 brewer holding either a primary source of supply permit or an
64	64	6 out-of-state brewer's permit may:
65	65	7 (1) appoint a beer wholesaler to perform the services described in
66	66	8 IC 7.1-3-3-5(f)(1) IC 7.1-3-3-5(j)(1) through IC 7.1-3-3-5(f)(2);
67	67	9 IC 7.1-3-3-5(j)(2); and
68	68	10 (2) provide a fee to a beer wholesaler who performs the services
69	69	11 described in IC 7.1-3-3-5(f)(1) IC 7.1-3-3-5(j)(1) through
70	70	12 IC 7.1-3-3-5(f)(2). IC 7.1-3-3-5(j)(2).
71	71	13 SECTION 4. IC 7.1-3-3-5, AS AMENDED BY P.L.153-2015,
72	72	14 SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
73	73	15 JULY 1, 2022]: Sec. 5. (a) The holder of a beer wholesaler's permit
74	74	16 may purchase and import from the primary source of supply, possess,
75	75	17 and sell at wholesale, beer, mixed beverages, and flavored malt
76	76	18 beverages manufactured within or without this state.
77	77	19 (b) A beer wholesaler permittee may possess, transport, sell, and
78	78	20 deliver beer to:
79	79	21 (1) another beer wholesaler authorized by the brewer to sell the
80	80	22 brand purchased;
81	81	23 (2) an employee;
82	82	24 (3) a holder of a beer retailer's permit, beer dealer's permit,
83	83	25 temporary beer permit, dining car permit, boat permit, airplane
84	84	26 permit, or supplemental caterer's permit; and
85	85	27 (4) a qualified organization for:
86	86	28 (A) an allowable event to which IC 7.1-3-6.1 applies; or
87	87	29 (B) a charity auction to which IC 7.1-3-6.2 applies;
88	88	30 located within this state. The sale, donation to a qualified organization,
89	89	31 transportation, and delivery of beer shall be made only from inventory
90	90	32 that has been located on the wholesaler's premises before the time of
91	91	33 invoicing and delivery.
92	92	34 (c) A beer wholesaler permittee may possess, transport, sell, and
93	93	35 deliver mixed beverages only to a person who holds one (1) of the
94	94	36 following:
95	95	37 (1) A liquor retailer's permit under IC 7.1-3-9.
96	96	38 (2) A supplemental caterer's permit under IC 7.1-3-9.5.
97	97	39 (3) A liquor dealer's permit under IC 7.1-3-10.
98	98	40 (4) A beer wholesaler's permit under IC 7.1-3-3.
99	99	41 (5) A liquor wholesaler's permit under IC 7.1-3-8.
100	100	42 (d) A beer wholesaler permittee may sell, donate, transport, and
101	101	2022 IN 1219—LS 7128/DI 107 3
102	102	1 deliver mixed beverages to a qualified organization for:
103	103	2 (1) an allowable event to which IC 7.1-3-6.1 applies; or
104	104	3 (2) a charity auction to which IC 7.1-3-6.2 applies;
105	105	4 located within this state. The sale or donation under this subsection
106	106	5 may only be made from inventory that was located on the
107	107	6 wholesaler's premises before the time of invoicing and delivery.
108	108	7 (e) The commission shall adopt rules under IC 4-22-2 to:
109	109	8 (1) regulate the types of containers that mixed beverages may
110	110	9 be distributed or sold in; and
111	111	10 (2) limit the quantity of mixed beverages that may be sold or
112	112	11 donated under subsection (d).
113	113	12 (c) (f) The beer wholesaler's bona fide regular employees may
114	114	13 purchase beer from the wholesaler in:
115	115	14 (1) bottles, cans, or any other type of permissible containers in an
116	116	15 amount not to exceed forty-eight (48) pints; or
117	117	16 (2) one (1) keg;
118	118	17 at any one (1) time.
119	119	18 (g) The beer wholesaler's bona fide regular employees may
120	120	19 purchase mixed beverages from the wholesaler in an amount not
121	121	20 to exceed eighteen (18) liters at any one (1) time.
122	122	21 (d) (h) The importation, transportation, possession, sale, and
123	123	22 delivery of beer shall be subject to the rules of the commission and
124	124	23 subject to the same restrictions provided in this title for a person
125	125	24 holding a brewer's permit.
126	126	25 (e) (i) The holder of a beer wholesaler's permit may purchase,
127	127	26 import, possess, transport, sell, and deliver any commodity listed in
128	128	27 IC 7.1-3-10-5, unless prohibited by this title. However, a beer
129	129	28 wholesaler may deliver flavored malt beverages only to the holder of
130	130	29 one (1) of the following permits:
131	131	30 (1) A beer wholesaler or wine wholesaler permit, if the wholesaler
132	132	31 is authorized by the primary source of supply to sell the brand of
133	133	32 flavored malt beverage purchased.
134	134	33 (2) A wine retailer's permit, wine dealer's permit, temporary wine
135	135	34 permit, dining car wine permit, boat permit, airplane permit, or
136	136	35 supplemental caterer's permit.
137	137	36 (f) (j) A beer wholesaler may:
138	138	37 (1) store beer for an out-of-state brewer described in IC 7.1-3-2-9
139	139	38 and deliver the stored beer to another beer wholesaler that the
140	140	39 out-of-state brewer authorizes to sell the beer;
141	141	40 (2) perform all necessary accounting and auditing functions
142	142	41 associated with the services described in subdivision (1); and
143	143	42 (3) receive a fee from an out-of-state brewer for the services
144	144	2022 IN 1219—LS 7128/DI 107 4
145	145	1 described in subdivisions (1) through (2).
146	146	2 SECTION 5. IC 7.1-3-3-5.5 IS ADDED TO THE INDIANA CODE
147	147	3 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
148	148	4 1, 2022]: Sec. 5.5. (a) A beer wholesaler that wholesales mixed
149	149	5 beverages under section 5 of this chapter may not:
150	150	6 (1) be required by the commission to:
151	151	7 (A) apply for or maintain a liquor wholesaler's permit; or
152	152	8 (B) pay a fee;
153	153	9 to wholesale mixed beverages under this chapter; or
154	154	10 (2) keep or store mixed beverages at a place other than the
155	155	11 premises described in the application and permit for the beer
156	156	12 wholesaler's permit.
157	157	13 (b) A beer wholesaler that wholesales mixed beverages under
158	158	14 section 5 of this chapter is subject to IC 7.1-3-8-3 and any other law
159	159	15 or rule of the commission applicable to the holder of a liquor
160	160	16 wholesaler's permit as to the beer wholesaler's sale of mixed
161	161	17 beverages to the extent the law or rule does not conflict with this
162	162	18 section.
163	163	19 SECTION 6. IC 7.1-5-5-11, AS AMENDED BY P.L.270-2017,
164	164	20 SECTION 18, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
165	165	21 JULY 1, 2022]: Sec. 11. (a) Except as provided in subsections (c), (d),
166	166	22 and (e), it is unlawful for a manufacturer of alcoholic beverages or a
167	167	23 permittee authorized to sell and deliver alcoholic beverages to:
168	168	24 (1) give to another permittee who purchases alcoholic beverages
169	169	25 from the manufacturer or permittee a gift; or
170	170	26 (2) except as provided in IC 7.1-3-2-9 and IC 7.1-3-3-5(f),
171	171	27 IC 7.1-3-3-5(j), have a business dealing with the other permittee.
172	172	28 (b) This section does not apply to the sale and delivery and
173	173	29 collection of the sale price of an alcoholic beverage in the ordinary
174	174	30 course of business.
175	175	31 (c) If the promotional program is approved under the rules adopted
176	176	32 by the commission and is conducted in all wholesaler establishments
177	177	33 through which the manufacturer distributes alcoholic beverages in
178	178	34 Indiana, a manufacturer of alcoholic beverages may award bona fide
179	179	35 promotional prizes and awards to any of the following:
180	180	36 (1) A person with a wholesaler's permit issued under IC 7.1-3.
181	181	37 (2) An employee of a person with a wholesaler's permit issued
182	182	38 under IC 7.1-3.
183	183	39 (d) A manufacturer may offer on a nondiscriminatory basis bona
184	184	40 fide incentives to wholesalers when the incentives are determined
185	185	41 based on sales to retailers or dealers occurring during specified times
186	186	42 for specified products. The incentive may be conditioned on the
187	187	2022 IN 1219—LS 7128/DI 107 5
188	188	1 wholesaler selling a:
189	189	2 (1) specified product at a specified price or less than a specified
190	190	3 price; or
191	191	4 (2) minimum quantity of a specified product to a single customer
192	192	5 in a single transaction.
193	193	6 The incentive may not be conditioned on a wholesaler having total
194	194	7 sales of a minimum quantity of a specified product during the
195	195	8 applicable period.
196	196	9 (e) A manufacturer or a permittee authorized to sell and deliver
197	197	10 alcoholic beverages may provide entertainment and professional and
198	198	11 educational expenses to another permittee, unless the entertainment or
199	199	12 professional and educational expenses are provided in exchange for an
200	200	13 agreement to directly or indirectly purchase alcoholic beverages from
201	201	14 a:
202	202	15 (1) manufacturer; or
203	203	16 (2) permittee authorized to sell and deliver alcoholic beverages;
204	204	17 to the exclusion, in whole or in part, of alcoholic beverages sold or
205	205	18 delivered by another manufacturer or a permittee authorized to sell and
206	206	19 deliver alcoholic beverages.
207	207	20 (f) A person who knowingly or intentionally violates this section
208	208	21 commits a Class A misdemeanor.
209	209	22 SECTION 7. IC 7.1-5-9-3, AS AMENDED BY P.L.79-2015,
210	210	23 SECTION 12, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
211	211	24 JULY 1, 2022]: Sec. 3. (a) This section applies to a brewer that
212	212	25 manufactures, in aggregate, more than ninety thousand (90,000) barrels
213	213	26 of beer in a calendar year for sale or distribution within Indiana.
214	214	27 (b) It is unlawful for the holder of a brewer's or beer wholesaler's
215	215	28 permit to have an interest in a liquor permit of any type under this title.
216	216	29 However, this section does not prohibit the holder of a beer
217	217	30 wholesaler's permit from wholesaling mixed beverages under
218	218	31 IC 7.1-3-3-5.5.
219	219	32 (c) A person who knowingly or intentionally violates this section
220	220	33 commits a Class B misdemeanor.
221	221	34 SECTION 8. IC 7.1-5-9-4, AS AMENDED BY P.L.159-2014,
222	222	35 SECTION 59, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
223	223	36 JULY 1, 2022]: Sec. 4. (a) Except as provided in IC 7.1-3-3-4 and
224	224	37 subsection (c), an applicant for a beer wholesaler's permit shall have
225	225	38 no interest in the following:
226	226	39 (1) A permit to manufacture or to sell at retail alcoholic beverages
227	227	40 of any kind.
228	228	41 (2) Any other permit to wholesale alcoholic beverages.
229	229	42 (3) Through stock ownership or otherwise, a partnership, limited
230	230	2022 IN 1219—LS 7128/DI 107 6
231	231	1 liability company, or corporation that holds:
232	232	2 (A) a permit to manufacture or to sell at retail alcoholic
233	233	3 beverages of any kind; or
234	234	4 (B) any other permit to wholesale alcoholic beverages of any
235	235	5 kind.
236	236	6 (b) A person who knowingly or intentionally violates this section
237	237	7 commits a Class B misdemeanor.
238	238	8 (c) This section does not prohibit the holder of a beer
239	239	9 wholesaler's permit from wholesaling mixed beverages under
240	240	10 IC 7.1-3-3-5.5.
241	241	11 SECTION 9. IC 7.1-5-9-6, AS AMENDED BY P.L.279-2019,
242	242	12 SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
243	243	13 JULY 1, 2022]: Sec. 6. (a) This section does not apply to the holder
244	244	14 of a beer wholesaler's permit that wholesales mixed beverages
245	245	15 under IC 7.1-3-3-5.5.
246	246	16 (a) (b) It is unlawful for the holder of a liquor wholesaler's permit
247	247	17 to have an interest in a beer permit of any type under this title.
248	248	18 (b) (c) A person who knowingly or intentionally violates this section
249	249	19 commits a Class B misdemeanor.
250	250	20 SECTION 10. IC 7.1-5-10-12, AS AMENDED BY P.L.194-2021,
251	251	21 SECTION 65, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
252	252	22 JULY 1, 2022]: Sec. 12. (a) Except as provided in subsections (b) (c)
253	253	23 through (d) (e) and subsection (g), (h), it is unlawful for a permittee to
254	254	24 sell, offer to sell, purchase or receive, an alcoholic beverage for
255	255	25 anything other than cash. A permittee who extends credit in violation
256	256	26 of this section shall have no right of action on the claim.
257	257	27 (b) A beer wholesaler permittee may not extend credit for the
258	258	28 sale of mixed beverages.
259	259	29 (b) (c) A permittee may credit to a purchaser the actual price
260	260	30 charged for a package or an original container returned by the original
261	261	31 purchaser as a credit on a sale and refund to a purchaser the amount
262	262	32 paid by the purchaser for a container, or as a deposit on a container, if
263	263	33 it is returned to the permittee.
264	264	34 (c) (d) A manufacturer may extend usual and customary credit for
265	265	35 alcoholic beverages sold to a customer who maintains a place of
266	266	36 business outside this state when the alcoholic beverages are actually
267	267	37 shipped to a point outside this state.
268	268	38 (d) (e) An artisan distiller, a distiller, a farm winery, or a liquor or
269	269	39 wine wholesaler may extend credit on liquor, flavored malt beverages,
270	270	40 and wine sold to a permittee for a period of fifteen (15) days from the
271	271	41 date of invoice, date of invoice included. However, if the fifteen (15)
272	272	42 day period passes without payment in full, the:
273	273	2022 IN 1219—LS 7128/DI 107 7
274	274	1 (1) wholesaler;
275	275	2 (2) farm winery that sells and delivers under IC 7.1-3-12-5(a)(14);
276	276	3 or
277	277	4 (3) artisan distillery that sells and delivers under
278	278	5 IC 7.1-3-27-8(a)(11);
279	279	6 shall sell to that permittee on a cash on delivery basis only.
280	280	7 (e) (f) A person who knowingly or intentionally violates this section
281	281	8 commits a Class B misdemeanor.
282	282	9 (f) (g) Nothing in this section may be construed to prohibit a hotel,
283	283	10 restaurant, caterer, or a club that is not open to the general public from
284	284	11 extending credit to a consumer purchasing alcohol for personal use at
285	285	12 any time.
286	286	13 (g) (h) Nothing in this section may be construed to prohibit a retailer
287	287	14 or dealer from accepting a:
288	288	15 (1) credit card;
289	289	16 (2) debit card;
290	290	17 (3) charge card; or
291	291	18 (4) stored value card;
292	292	19 from a consumer purchasing alcohol for personal use.
293	293	2022 IN 1219—LS 7128/DI 107