*HB1298.3*
Reprinted
January 27, 2022
HOUSE BILL No. 1298
_____
DIGEST OF HB 1298 (Updated January 26, 2022 4:45 pm - DI 144)
Citations Affected: IC 7.1-3; IC 7.1-4; IC 7.1-5; noncode.
Synopsis: Alcoholic beverages. Allows a county, city, or town to adopt
an ordinance to allow the following at a farmers' market, subject to the
consent of the operator of the farmers' market: (1) A small brewery,
farm winery, or artisan distillery (craft manufacturer) to serve
complimentary samples of the alcoholic beverages (product) that they
manufacture. (2) A small brewery or artisan distillery to sell their
product in original containers. Provides that the alcohol and tobacco
commission may not require physical separation between a bar area
and a dining area in a food hall. Reduces the length of time that an
applicant for an artisan distiller's permit must hold another permit prior
to the date of the application. Creates a temporary craft manufacturer
hospitality permit (hospitality permit) that allows a craft manufacturer
to participate in a convention, a trade show, an exposition, or a similar
event on the licensed premises of a particular host permittee. Specifies
certain requirements and restrictions concerning a hospitality permit.
Makes conforming amendments.
Effective: July 1, 2022.
Smaltz, Clere, Bartels
January 11, 2022, read first time and referred to Committee on Public Policy.
January 18, 2022, amended, reported — Do Pass.
January 26, 2022, read second time, amended, ordered engrossed.
HB 1298—LS 7163/DI 87 Reprinted
January 27, 2022
Second Regular Session of the 122nd General Assembly (2022)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
Constitution) is being amended, the text of the existing provision will appear in this style type,
additions will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional
provision adopted), the text of the new provision will appear in this style type. Also, the
word NEW will appear in that style type in the introductory clause of each SECTION that adds
a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
between statutes enacted by the 2021 Regular Session of the General Assembly.
HOUSE BILL No. 1298
A BILL FOR AN ACT to amend the Indiana Code concerning
alcohol and tobacco.
Be it enacted by the General Assembly of the State of Indiana:
1 SECTION 1. IC 7.1-3-2-7, AS AMENDED BY P.L.194-2021,
2 SECTION 29, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3 JULY 1, 2022]: Sec. 7. The holder of a brewer's permit or an
4 out-of-state brewer holding either a primary source of supply permit or
5 an out-of-state brewer's permit may do the following:
6 (1) Manufacture beer.
7 (2) Place beer in containers or bottles.
8 (3) Transport beer.
9 (4) Sell and deliver beer to a person holding a beer wholesaler's
10 permit issued under IC 7.1-3-3.
11 (5) If the brewer manufactures, at all of the brewer's breweries
12 located in Indiana, an aggregate of not more than ninety thousand
13 (90,000) barrels of beer in a calendar year for sale or distribution
14 within Indiana, the permit holder may do the following:
15 (A) Sell and deliver a total of not more than thirty thousand
16 (30,000) barrels of beer in a calendar year to a person holding
17 a retailer or a dealer permit under this title. The total number
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1 of barrels of beer that the permit holder may sell and deliver
2 under this clause in a calendar year may not exceed thirty
3 thousand (30,000) barrels of beer.
4 (B) Be the proprietor of a restaurant that is not subject to the
5 minimum gross food sales or the minimum projected food
6 sales set forth in 905 IAC 1-41-2.
7 (C) Hold a beer retailer's permit, a wine retailer's permit, or a
8 liquor retailer's permit for a restaurant established under clause
9 (B).
10 (D) Transfer beer directly from the brewery to the restaurant
11 by means of:
12 (i) bulk containers; or
13 (ii) a continuous flow system.
14 (E) Install a window between the brewery and an adjacent
15 restaurant that allows the public and the permittee to view both
16 premises.
17 (F) Install a doorway or other opening between the brewery
18 and an adjacent restaurant that provides the public and the
19 permittee with access to both premises.
20 (G) Sell the brewery's beer by the glass for consumption on the
21 premises. Brewers permitted to sell beer by the glass under
22 this clause must make food available for consumption on the
23 premises. A brewer may comply with the requirements of this
24 clause by doing any of the following:
25 (i) Allowing a vehicle of transportation that is a food
26 establishment (as defined in IC 16-18-2-137) to serve food
27 near the brewer's licensed premises.
28 (ii) Placing menus in the brewer's premises of restaurants
29 that will deliver food to the brewery.
30 (iii) Providing food prepared at the brewery.
31 (H) Sell and deliver beer to a consumer at the licensed
32 premises of the brewer or at the residence of the consumer.
33 Notwithstanding IC 7.1-1-3-20, the licensed premises may
34 include the brewery parking lot or an area adjacent to the
35 brewery that may only be used for the purpose of conveying
36 alcoholic beverages and other nonalcoholic items to a
37 customer subject to section 10 of this chapter, and may not be
38 used for point of sale purposes or any other purpose. The
39 delivery to a consumer may be made only in a quantity at any
40 one (1) time of not more than one-half (1/2) barrel, but the
41 beer may be contained in bottles or other permissible
42 containers.
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1 (I) Sell the brewery's beer as authorized by this section for
2 carryout on Sunday in a quantity at any one (1) time of not
3 more than five hundred seventy-six (576) ounces. A brewer's
4 beer may be sold under this clause at any address for which the
5 brewer holds a brewer's permit issued under this chapter if the
6 address is located within the same city boundaries in which the
7 beer was manufactured.
8 (J) With the approval of the commission, participate:
9 (i) individually; or
10 (ii) with other permit holders under this chapter, holders of
11 artisan distiller's permits, holders of farm winery permits, or
12 any combination of holders described in this item;
13 in a trade show or an exposition at which products of each
14 permit holder participant are displayed, promoted, and sold.
15 All of the permit holders may occupy the same tent, structure,
16 or building. The commission may not grant to a holder of a
17 permit under this chapter approval under this clause to
18 participate in a trade show or exposition for more than
19 forty-five (45) days in a calendar year.
20 (K) Store or condition beer in a secure building that is:
21 (i) separate from the brewery; and
22 (ii) owned or leased by the permit holder.
23 (L) Transfer beer from a building described in clause (K) back
24 to the brewery.
25 (M) Sell or transfer beer directly to a beer wholesaler from a
26 building described in clause (K), but may not sell or transfer
27 beer from the building to any other permittee or a consumer.
28 The brewer shall maintain an adequate written record of the
29 beer transferred:
30 (i) between the brewery and the separate building; and
31 (ii) from the separate building to the wholesaler.
32 (N) Sell the brewery's beer to the holder of a supplemental
33 caterer's permit issued under IC 7.1-3-9.5 for on-premises
34 consumption only at an event that is held outdoors on property
35 that is contiguous to the brewery as approved by the
36 commission.
37 (O) Receive liquor from the holder of a distiller's permit issued
38 under IC 7.1-3-7 or the holder of an artisan distiller's permit
39 under IC 7.1-3-27 that is located in the same county as the
40 brewery for the purpose of carbonating and canning the liquor.
41 Upon the completion of canning of the liquor, the product
42 must be returned to the original production facility within
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1 forty-eight (48) hours. The activity under this clause is not an
2 interest under IC 7.1-5-9.
(P) 3 Sell the brewery's beer to consumers in an original
4 container and serve complimentary samples of the
5 brewery's beer at a farmers' market that is operated on a
6 nonprofit basis, if authorized by:
7 (i) an ordinance adopted by the legislative body of the
8 unit in which the farmers' market is conducted as
9 provided in section 7.3 of this chapter; and
10 (ii) the operator of the farmers' market.
11 (6) If the brewer's brewery manufactures more than ninety
12 thousand (90,000) barrels of beer in a calendar year for sale or
13 distribution within Indiana, the permit holder may own a portion
14 of the corporate stock of another brewery that:
15 (A) is located in the same county as the brewer's brewery;
16 (B) manufactures less than ninety thousand (90,000) barrels of
17 beer in a calendar year; and
18 (C) is the proprietor of a restaurant that operates under
19 subdivision (5).
20 (7) Provide complimentary samples of beer that are:
21 (A) produced by the brewer; and
22 (B) offered to consumers for consumption on the brewer's
23 premises.
24 (8) Own a portion of the corporate stock of a sports corporation
25 that:
26 (A) manages a minor league baseball stadium located in the
27 same county as the brewer's brewery; and
28 (B) holds a beer retailer's permit, a wine retailer's permit, or a
29 liquor retailer's permit for a restaurant located in that stadium.
30 (9) For beer described in IC 7.1-1-2-3(a)(4):
31 (A) may allow transportation to and consumption of the beer
32 on the licensed premises; and
33 (B) may not sell, offer to sell, or allow sale of the beer on the
34 licensed premises.
35 SECTION 2. IC 7.1-3-2-7.3 IS ADDED TO THE INDIANA CODE
36 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
37 1, 2022]: Sec. 7.3. (a) The legislative body (as defined in
38 IC 36-1-2-9) of:
39 (1) a county, in the case of a farmers' market conducted in the
40 unincorporated area of a county; or
41 (2) a city or town in which a farmers' market is conducted;
42 may adopt an ordinance that allows breweries to sell and serve
HB 1298—LS 7163/DI 87 5
1 samples of beer manufactured by the breweries at farmers'
2 markets operated on a nonprofit basis as provided in section
3 7(5)(P) of this chapter, subject to the consent of the operator of the
4 farmers' market.
5 (b) An ordinance adopted under this section is effective on the
6 date the legislative body submits a copy of the ordinance to the
7 commission. The ordinance may not regulate a permittee's sale or
8 service of alcoholic beverages. However, this section may not be
9 construed to prohibit a legislative body from adopting an
10 ordinance to regulate a farmers' market in a manner that does not
11 regulate a permittee's sale or service of alcoholic beverages.
12 (c) Nothing in this section may be interpreted to:
13 (1) preclude an operator of a farmers' market from allowing
14 more than one (1) permittee to sell and serve samples at the
15 same farmers' market, if an ordinance is adopted that allows
16 that permittee to sell and serve samples under:
17 (A) this section;
18 (B) IC 7.1-3-12-5.3 (farm wineries); or
19 (C) IC 7.1-3-27-8.3 (artisan distilleries); or
20 (2) require an operator of a farmers' market to allow
21 breweries to sell and serve samples of beer at the farmers'
22 market if an ordinance is adopted under this section.
23 (d) At a farmers' market held under this section, a sample size
24 of beer may not exceed two (2) ounces.
25 (e) A brewery's sale and service at a farmers' market under this
26 section does not count toward the maximum days that a brewery
27 is permitted to participate in a trade show or exhibition under
28 IC 7.1-3-2-7(5)(J).
29 SECTION 3. IC 7.1-3-12-5, AS AMENDED BY P.L.194-2021,
30 SECTION 42, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
31 JULY 1, 2022]: Sec. 5. (a) The following apply to the holder of a farm
32 winery permit:
33 (1) A holder is entitled to manufacture wine and to place wine
34 produced by the permit holder's farm winery in bottles or other
35 permissible containers.
36 (2) A holder is entitled to serve complimentary samples of the
37 winery's wine on the licensed premises or an outside area that is
38 contiguous to the licensed premises, as approved by the
39 commission if each employee who serves wine on the licensed
40 premises:
41 (A) holds an employee's permit under IC 7.1-3-18-9; and
42 (B) completes a server training program approved by the
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1 commission.
2 (3) A holder is entitled to sell the winery's wine on the licensed
3 premises to consumers either by:
4 (A) the glass;
5 (B) the bottle;
6 (C) a box that contains a bag designed for storing and
7 dispensing wine;
8 (D) any combination of receptacles listed in clauses (A)
9 through (C); or
10 (E) any other container permissible under federal law.
11 Notwithstanding IC 7.1-1-3-20, the licensed premises may
12 include the farm winery parking lot or an area adjacent to the farm
13 winery. The parking lot or an adjacent area may only be used for
14 the purpose of conveying alcoholic beverages and other
15 nonalcoholic items to a customer subject to section 5.5 of this
16 chapter, and may not be used for point of sale purposes or any
17 other purpose.
18 (4) A holder is entitled to:
19 (A) sell the winery's wine to consumers by the bottle at a
20 farmers' market that is operated on a nonprofit basis; and
21 (B) serve complimentary samples of the winery's wine at a
22 farmers' market that is operated on a nonprofit basis, if
23 authorized by:
24 (i) an ordinance adopted by the legislative body of the
25 unit in which the farmers' market is conducted as
26 provided in section 5.3 of this chapter; and
27 (ii) the operator of the farmers' market.
28 (5) A holder is entitled to sell wine by:
29 (A) the bottle;
30 (B) the can;
31 (C) a box that contains a bag designed for storing and
32 dispensing wine;
33 (D) bulk container;
34 (E) the case; or
35 (F) any combination of receptacles listed in clauses (A)
36 through (E);
37 to a person who is the holder of a permit to sell wine at wholesale.
38 (6) A holder is exempt from the provisions of IC 7.1-3-14.
39 (7) A holder is entitled to advertise the name and address of any
40 retailer or dealer who sells wine produced by the permit holder's
41 winery.
42 (8) A holder for wine described in IC 7.1-1-2-3(a)(4):
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1 (A) may allow transportation to and consumption of the wine
2 on the licensed premises; and
3 (B) may not sell, offer to sell, or allow the sale of the wine on
4 the licensed premises.
5 (9) A holder is entitled to purchase and sell bulk wine as set forth
6 in this chapter.
7 (10) A holder is entitled to sell wine as authorized by this section
8 for carryout on Sunday.
9 (11) A holder is entitled to sell and ship the farm winery's wine to
10 a person located in another state in accordance with the laws of
11 the other state.
12 (12) A holder is entitled to sell the farm winery's wine to the
13 holder of a supplemental caterer's permit issued under
14 IC 7.1-3-9.5 for on-premises consumption only at an event that is
15 held outdoors on property that is contiguous to the farm winery as
16 approved by the commission.
17 (13) A holder is entitled to be the proprietor of a restaurant that is
18 not subject to the minimum gross food sales or the minimum
19 projected food sales set forth in 905 IAC 1-41-2 and the gross
20 retail income requirements to sell carryout under IC 7.1-3-20-9.5.
21 A holder is entitled to conduct the following activities:
22 (A) Hold a beer retailer's permit, a wine retailer's permit, or a
23 liquor retailer's permit for a restaurant.
24 (B) Transfer wine directly from the farm winery to a restaurant
25 that the farm winery has an interest in by means of:
26 (i) bottles or cans;
27 (ii) bulk containers; or
28 (iii) a continuous flow system.
29 (C) Install a window between the farm winery and an adjacent
30 restaurant that allows the public and the holder of the permit
31 to view both premises.
32 (D) Install a doorway or other opening between the farm
33 winery and an adjacent restaurant that provides the public and
34 the holder of the permit with access to both the farm winery
35 and restaurant.
36 (14) A holder that does not distribute through an Indiana wine
37 wholesaler is entitled under the farm winery permit to sell and
38 deliver to a person holding a wine retailer or wine dealer permit
39 under this title a total of not more than three thousand (3,000)
40 gallons of the farm winery's wine in a calendar year, if the farm
41 winery has not sold in Indiana more than fifteen thousand
42 (15,000) gallons the previous calendar year. A holder that sells
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1 and delivers under this subdivision shall comply with all
2 provisions applicable to a wholesaler in 905 IAC 1-5.1, 905
3 IAC 1-5.2, 905 IAC 1-21, 905 IAC 1-31, and 905 IAC 1-32.1.
4 (15) A holder must annually submit to the commission copies of
5 its Indiana and federal excise tax returns.
6 (b) With the approval of the commission, a holder of a permit under
7 this chapter may conduct business at not more than three (3) additional
8 locations that are separate from the winery. At the additional locations,
9 the holder of a permit may conduct any business that is authorized at
10 the first location, except for manufacturing wine or placing wine in
11 bottles or containers.
12 (c) A farm winery may transfer wine from a storage facility or an
13 additional location described in subsection (b). A farm winery may sell
14 or transfer wine directly to a wine wholesaler from a storage facility
15 separate from the farm winery or an additional location described in
16 subsection (b). A farm winery may not sell or transfer wine from a
17 storage facility to any other permittee or a consumer. The farm winery
18 shall maintain an adequate written record of wine transferred:
19 (1) between the farm winery and the storage facility; and
20 (2) from the storage facility to the wholesaler.
21 (d) With the approval of the commission, a holder of a permit under
22 this chapter may:
23 (1) individually; or
24 (2) with other permit holders under this chapter, holders of artisan
25 distiller's permits, holders of brewer's permits issued under
26 IC 7.1-3-2-2(b), or any combination of holders described in this
27 subdivision;
28 participate in a trade show or an exposition at which products of each
29 permit holder participant are displayed, promoted, and sold. All of the
30 permit holders may occupy the same tent, structure, or building. The
31 commission may not grant approval under this subsection to a holder
32 of a permit under this chapter for more than forty-five (45) days in a
33 calendar year.
34 SECTION 4. IC 7.1-3-12-5.3 IS ADDED TO THE INDIANA
35 CODE AS A NEW SECTION TO READ AS FOLLOWS
36 [EFFECTIVE JULY 1, 2022]: Sec. 5.3. (a) The legislative body (as
37 defined in IC 36-1-2-9) of:
38 (1) a county, in the case of a farmers' market conducted in the
39 unincorporated area of a county; or
40 (2) a city or town in which a farmers' market is conducted;
41 may adopt an ordinance allowing farm wineries to sell and serve
42 complimentary samples of wine manufactured by the farm winery
HB 1298—LS 7163/DI 87 9
1 at a farmers' market operated on a nonprofit basis as provided in
2 section 5(a)(4) of this chapter, subject to the consent of the
3 operator of the farmers' market.
4 (b) An ordinance adopted under this section is effective on the
5 date the legislative body submits a copy of the ordinance to the
6 commission. The ordinance may not regulate a permittee's sale or
7 service of alcoholic beverages. However, this section may not be
8 construed to prohibit a legislative body from adopting an
9 ordinance to regulate a farmers' market in a manner that does not
10 regulate a permittee's sale or service of alcoholic beverages.
11 (c) Nothing in this section may be interpreted to:
12 (1) preclude an operator of a farmers' market from allowing
13 more than one (1) permittee to sell and serve samples at the
14 same farmers' market, if an ordinance is adopted that allows
15 that permittee to sell and serve samples under:
16 (A) this section;
17 (B) IC 7.1-3-2-7.3 (breweries); or
18 (C) IC 7.1-3-27-8.3 (artisan distilleries); or
19 (2) require an operator of a farmers' market to allow farm
20 wineries to sell and serve samples of wine at the farmers'
21 market if an ordinance is adopted under this section.
22 (d) At a farmers' market held under this section, a sample size
23 of:
24 (1) wine, other than hard cider, may not exceed one (1) ounce;
25 and
26 (2) hard cider may not exceed two (2) ounces.
27 (e) A farm winery's sale and service at a farmers' market under
28 this section does not count toward the maximum days that a farm
29 winery is permitted to participate in a trade show or exhibition
30 under IC 7.1-3-12-5(d).
31 SECTION 5. IC 7.1-3-20-29, AS AMENDED BY P.L.150-2021,
32 SECTION 4 AND P.L.194-2021, SECTION 46, IS AMENDED TO
33 READ AS FOLLOWS [EFFECTIVE JULY 1, 2022]: Sec. 29. (a) As
34 used in this section, "food hall" means the premises:
35 (1) located within a retail shopping and food service district; and
36 (2) to which a master permit is issued under this section.
37 (b) As used in this section, "master permit" means a food hall master
38 permit issued under this section.
39 (c) Except as provided in subsection (d), the commission may issue
40 a master permit, which is a three-way retailer's permit for on premises
41 consumption, to a food hall located in a retail shopping and food
42 service district that meets the following requirements:
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1 (1) The district consists of an area that:
2 (A) has been redeveloped, renovated, or environmentally
3 remediated in part with grants from the federal, state, or local
4 government under IC 36-7-11; and
5 (B) is entirely located within an incorporated city or town.
6 (2) The district consists of land and a building or group of
7 buildings that are part of a common development.
8 (3) The district is located within a locally designated historic
9 district under IC 36-7-11 established by a city or town ordinance.
10 (4) The district contains at least one (1) building that:
11 (A) is on the list of the National Register for Historic Places or
12 qualifies as a historic building worthy of preservation under
13 IC 36-7-11; and
14 (B) has been approved for present commercial use by the local
15 historic preservation commission of the city or town.
16 (d) Subsection (c)(3) and (c)(4) does not apply to a food hall that:
17 (1) is located within a certified technology park established under
18 IC 36-7-32; and
19 (2) operates within a previously vacant building that was, or
20 within a complex of buildings that were:
21 (A) placed in service at least twenty-five (25) years prior to the
22 redevelopment of the building or buildings; and
23 (B) owned by a unit of local government or a public charitable
24 trust prior to redevelopment.
25 (e) The commission may issue a master permit to the owner or
26 developer of a food hall. The food hall constitutes a single permit
27 premises that:
28 (1) contains not less than seven (7) distinct, nonaffiliated retail
29 food and beverage vendors, each of which may apply for a food
30 hall vendor permit under section 30 of this chapter; and
31 (2) has a seating capacity of the type traditionally designed for
32 food and drink for at least one hundred (100) people.
33 (f) An applicant for a master permit shall post notice and appear in
34 front of the local board in which the permit premises is situated. The
35 local board shall determine the eligibility of the applicant under this
36 section and hear evidence in support of or against the master permit
37 location. A master permit may not be transferred to a location outside
38 the food hall permit premises. A permit that is inactive for more than
39 six (6) months shall revert back to the commission or may be deposited
40 with the commission under IC 7.1-3-1.1 with the commission's
41 permission.
42 (g) A master permit authorized by this section may be issued
HB 1298—LS 7163/DI 87 11
1 without regard to the proximity provisions of IC 7.1-3-21-11 or the
2 quota provisions of IC 7.1-3-22.
3 (h) The commission may not require physical separation
4 between a bar area and a dining area in a food hall.
5 SECTION 6. IC 7.1-3-27-5, AS AMENDED BY P.L.270-2017,
6 SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
7 JULY 1, 2022]: Sec. 5. (a) Except as provided in section 7 of this
8 chapter, an applicant for an artisan distiller's permit must meet all the
9 following requirements to be eligible for an artisan distiller's permit:
10 (1) The permit applicant must hold one (1) of the following
11 permits for the eighteen (18) six (6) months immediately
12 preceding the date of the application:
13 (A) A farm winery permit under IC 7.1-3-12.
14 (B) A brewer's permit issued under IC 7.1-3-2-2(b).
15 (C) A distiller's permit under IC 7.1-3-7.
16 (2) The permit applicant may not have more than one (1) violation
17 of this title during the eighteen (18) months immediately
18 preceding the date of the application.
19 (3) The permit applicant may not have any violation of this title
20 during the twelve (12) month period immediately preceding the
21 date of the permit application.
22 (b) As used in this subsection, "qualifying permit" means a farm
23 winery, brewer's, or distiller's permit under subsection (a)(1)(A),
24 (a)(1)(B), or (a)(1)(C) that is required in order to hold an artisan
25 distiller's permit. The same persons must directly or indirectly own and
26 control more than fifty percent (50%) of the entity that holds the
27 qualifying permit and the artisan distiller's permit.
28 SECTION 7. IC 7.1-3-27-8, AS AMENDED BY P.L.194-2021,
29 SECTION 59, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
30 JULY 1, 2022]: Sec. 8. (a) The holder of an artisan distiller's permit
31 may do only the following:
32 (1) Manufacture liquor, including blending liquor purchased from
33 another manufacturer with liquor the artisan distiller
34 manufactures under section 11 of this chapter.
35 (2) Bottle liquor manufactured by the artisan distiller.
36 (3) Insert liquor manufactured by the artisan distiller into a
37 container.
38 (4) Store liquor manufactured by the artisan distiller, including at
39 a facility located within ten (10) miles of the artisan distiller's
40 distillery.
41 (5) Transport, sell, and deliver liquor manufactured by the artisan
42 distiller to:
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1 (A) places outside Indiana; or
2 (B) the holder of a liquor wholesaler's permit under IC 7.1-3-8.
3 (6) Sell liquor manufactured by the artisan distiller to consumers
4 by the drink, bottle, container, or case from the licensed premises
5 of the distillery where the liquor was manufactured.
6 Notwithstanding IC 7.1-1-3-20, the licensed premises may
7 include the distillery parking lot or an area adjacent to the artisan
8 distillery. The parking lot or adjacent area may only be used for
9 the purpose of conveying alcoholic beverages and other
10 nonalcoholic items to a customer subject to section 8.1 of this
11 chapter and may not be used for point of sale purposes or any
12 other purpose.
13 (7) Serve complimentary samples of the liquor manufactured by
14 the artisan distiller to consumers on the premises of the distillery
15 where the liquor was manufactured.
16 (8) Sell liquor as authorized by this section for carryout on
17 Sunday in a quantity at any one (1) time of not more than four and
18 five-tenths (4.5) liters.
19 (9) With the approval of the commission, participate:
20 (A) individually; or
21 (B) with other permit holders under this chapter, holders of
22 farm winery permits, holders of brewer's permits issued under
23 IC 7.1-3-2-2(b), or any combination of holders described in
24 this clause;
25 in a trade show or an exposition at which products of each permit
26 holder participant are displayed, promoted, and sold. All of the
27 permit holders may occupy the same tent, structure, or building.
28 The commission may not grant to a holder of a permit under this
29 chapter approval under this subdivision to participate in a trade
30 show or exposition for more than forty-five (45) days in a
31 calendar year.
32 (10) Sell liquor manufactured by the artisan distiller in an
33 original container and serve complimentary samples of liquor
34 manufactured by the artisan distiller at a farmers' market
35 that is operated on a nonprofit basis, if authorized by:
36 (A) an ordinance adopted by the legislative body of the unit
37 in which the farmers' market is conducted as provided in
38 section 8.3 of this chapter; and
39 (B) the operator of the farmers' market.
40 (10) (11) Be the proprietor of a restaurant that is not subject to the
41 minimum gross food sales or the minimum projected food sales
42 set forth in 905 IAC 1-41-2 and the gross retail income
HB 1298—LS 7163/DI 87 13
1 requirements to sell carryout under IC 7.1-3-20-9.5. A holder is
2 entitled to conduct the following activities:
3 (A) Hold a beer retailer's permit, a wine retailer's permit, or a
4 liquor retailer's permit for a restaurant.
5 (B) Transfer liquor directly from the artisan distillery to a
6 restaurant that the artisan distiller has an interest in by means
7 of:
8 (i) bottles;
9 (ii) bulk containers; or
10 (iii) a continuous flow system.
11 (C) Install a window between the artisan distillery and an
12 adjacent restaurant that allows the public and the holder of the
13 permit to view both premises.
14 (D) Install a doorway or other opening between the artisan
15 distillery and an adjacent restaurant that provides the public
16 and the holder of the permit with access to both the artisan
17 distillery and restaurant.
18 (11) (12) A holder that does not distribute through an Indiana
19 liquor wholesaler is entitled under the artisan distiller's permit to
20 sell and deliver to a person holding a liquor retailer or liquor
21 dealer permit under this title a total of not more than one thousand
22 (1,000) gallons of the artisan distillery's liquor in a calendar year,
23 if the artisan distiller has not sold in Indiana more than nine
24 thousand (9,000) gallons the previous calendar year. A holder that
25 sells and delivers under this subdivision shall comply with all
26 provisions applicable to a wholesaler in 905 IAC 1-5.1, 905
27 IAC 1-5.2, 905 IAC 1-21, 905 IAC 1-31, and 905 IAC 1-32.1.
28 (12) (13) A holder must annually submit to the commission
29 copies of its Indiana and federal excise tax returns.
30 (b) The holder of an artisan distiller's permit who provides samples
31 or sells liquor by the glass must furnish the minimum food
32 requirements prescribed by the commission.
33 (c) A storage facility used by an artisan distiller under subsection
34 (a)(4) must conform with federal laws, rules, and regulations. An
35 artisan distiller may transfer liquor from a separate storage facility back
36 to the artisan distillery. An artisan distiller may sell or transfer liquor
37 directly to a liquor wholesaler from a storage facility that is separate
38 from the artisan distillery. An artisan distiller may not sell or transfer
39 liquor from a storage facility to any other permittee or a consumer. The
40 artisan distiller shall maintain an adequate written record of the liquor
41 transferred:
42 (1) between the artisan distillery and the storage facility; and
HB 1298—LS 7163/DI 87 14
1 (2) from the storage facility to the liquor wholesaler.
2 (d) The holder of an artisan distiller's permit may transport liquor to
3 and from a brewery located within the same county for the purposes of
4 carbonating and canning by the brewery. The activity under this
5 subsection is not an interest under IC 7.1-5-9.
6 (e) An artisan distiller who knowingly or intentionally violates this
7 section commits a Class B misdemeanor.
8 SECTION 8. IC 7.1-3-27-8.3 IS ADDED TO THE INDIANA
9 CODE AS A NEW SECTION TO READ AS FOLLOWS
10 [EFFECTIVE JULY 1, 2022]: Sec. 8.3. (a) The legislative body (as
11 defined in IC 36-1-2-9) of:
12 (1) a county, in the case of a farmers' market conducted in the
13 unincorporated area of a county; or
14 (2) a city or town in which a farmers' market is conducted;
15 may adopt an ordinance that allows artisan distillers to sell and
16 serve complimentary samples of liquor, liqueur, or cordials
17 manufactured by the artisan distilleries at a farmers' market
18 operated on a nonprofit basis as provided in section 8(a)(10) of this
19 chapter, subject to the consent of the operator of the farmers'
20 market.
21 (b) An ordinance adopted under this section is effective on the
22 date the legislative body submits a copy of the ordinance to the
23 commission. The ordinance may not regulate a permittee's sale or
24 service of alcoholic beverages. However, this section may not be
25 construed to prohibit a legislative body from adopting an
26 ordinance to regulate a farmers' market in a manner that does not
27 regulate a permittee's sale or service of alcoholic beverages.
28 (c) Nothing in this section may be interpreted to:
29 (1) preclude an operator of a farmers' market from allowing
30 more than one (1) permittee to sell and serve samples at the
31 same farmers' market, if an ordinance is adopted that allows
32 that permittee to sell and serve samples under:
33 (A) this section;
34 (B) IC 7.1-3-2-7.3 (breweries); or
35 (C) IC 7.1-3-12-5.3 (farm wineries); or
36 (2) require an operator of a farmers' market to allow artisan
37 distilleries to sell and serve samples of liquor, liqueur, or
38 cordials at the farmers' market if an ordinance is adopted
39 under this section.
40 (d) At a farmers' market held under this section, a sample size
41 of:
42 (1) liqueur or cordials may not exceed one-half (1/2) ounce;
HB 1298—LS 7163/DI 87 15
1 and
2 (2) liquor may not exceed four-tenths (0.4) ounce.
3 A permittee may allow a customer to sample a combined total of
4 two (2) liqueur, cordials, or liquor samples per day.
5 (e) An artisan distillery's sale and service at a farmers' market
6 under this section does not count toward the maximum days that
7 an artisan distillery is permitted to participate in a trade show or
8 exhibition under IC 7.1-3-27-8(a)(9).
9 SECTION 9. IC 7.1-3-30 IS ADDED TO THE INDIANA CODE
10 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
11 JULY 1, 2022]:
12 Chapter 30. Temporary Craft Manufacturer Hospitality Permit
13 Sec. 1. The following terms apply throughout this chapter:
14 (1) "Craft manufacturer" means a person who holds:
15 (A) a small brewery permit under IC 7.1-3-2-7(5);
16 (B) a farm winery permit under IC 7.1-3-12; or
17 (C) an artisan distiller's permit under IC 7.1-3-27.
18 (2) "Holder" means a person who holds a temporary craft
19 manufacturer hospitality permit.
20 (3) "Hospitality permit" means a temporary craft
21 manufacturer hospitality permit issued under this chapter.
22 (4) "Host permittee" means a person who holds:
23 (A) a civic center permit under IC 7.1-3-1-25;
24 (B) a permit under IC 7.1-3-20-18 through IC 7.1-3-20-21
25 (hotel);
26 (C) a permit under IC 7.1-3-21-14 (state fair grounds);
27 (D) a permit under IC 7.1-3-20-16.8 (economic
28 development area); or
29 (E) a permit under IC 7.1-3-17.8 (state park).
30 (5) "Temporary event" means an event listed in section 4 of
31 this chapter for which the commission issues a hospitality
32 permit.
33 Sec. 2. (a) The commission may issue a temporary craft
34 manufacturer hospitality permit without publication of notice or
35 investigation before a local board to a qualified person as provided
36 in this chapter. In all other respects, a hospitality permit shall be
37 issued, revoked, and governed by the restrictions and limitations
38 made in a provisional order or rule or regulation of the
39 commission.
40 (b) The commission shall issue a hospitality permit to an
41 applicant if the applicant:
42 (1) submits an application for a hospitality permit to the
HB 1298—LS 7163/DI 87 16
1 commission not later than five (5) business days before the
2 event for which the permit is requested; and
3 (2) meets all requirements for a hospitality permit.
4 (c) If authorized by the chairman or the chairman's designee,
5 and at the commission's discretion, a hospitality permit may be
6 issued to an applicant that:
7 (1) submits an application for the hospitality permit to the
8 commission later than five (5) business days before the event
9 for which the hospitality permit is requested; and
10 (2) meets all requirements for a hospitality permit.
11 (d) An application submitted under this section must contain a
12 floor plan which demonstrates that the host permittee is not
13 operating a bar in the same area as the temporary event. The
14 premises of the temporary event must be well defined.
15 (e) An application submitted under this section must designate
16 an individual who is responsible for the event. The individual
17 designated under this subsection must sign the application.
18 Sec. 3. The commission may issue a hospitality permit to a
19 person who is qualified to hold a beer retailer's permit and who
20 has such other qualifications as the commission may prescribe by
21 a provisional order until it adopts a rule or regulation on the
22 matter. However, the special disqualifications listed in
23 IC 7.1-3-4-2(a)(4), IC 7.1-3-4-2(a)(9), and IC 7.1-3-4-2(a)(14) do not
24 apply to an applicant for a hospitality permit.
25 Sec. 4. The commission may issue a hospitality permit only to
26 allow a craft manufacturer to participate in:
27 (1) a convention;
28 (2) a trade show;
29 (3) an exposition; or
30 (4) an event similar to one (1) or more of the events described
31 in subdivisions (1) through (3);
32 on the licensed premises of a host permittee.
33 Sec. 5. The commission may issue a hospitality permit for a term
34 not to exceed fifteen (15) consecutive days from its issuance.
35 However, if an emergency exists, in the judgment of the
36 commission, a hospitality permit may be renewed for a period not
37 to exceed fifteen (15) additional consecutive days.
38 Sec. 6. A hospitality permit issued under this chapter is subject
39 to the following:
40 (1) Except as provided in subdivision (4), alcoholic beverages
41 may be sold by a craft manufacturer only for consumption on
42 the licensed premises of the host permittee.
HB 1298—LS 7163/DI 87 17
1 (2) The sale of alcoholic beverages under a hospitality permit
2 is subject to the same restrictions that apply to the sale of beer
3 by the holder of a beer retailer's permit.
4 (3) A holder is not entitled to sell at wholesale or for carry out
5 from the licensed premises of the host permittee.
6 (4) Notwithstanding subdivisions (2) and (3), a craft
7 manufacturer may sell alcoholic beverages for carry out in an
8 original container in the manner permitted for a trade show
9 or exposition held under:
10 (A) IC 7.1-3-2-7(5)(J) (brewery);
11 (B) IC 7.1-3-12-5(d) (farm winery); or
12 (C) IC 7.1-3-27-8(a)(9) (artisan distillery).
13 (5) A craft manufacturer's participation in a temporary event
14 counts against the maximum days that the craft manufacturer
15 is permitted to participate in a trade show or exposition under
16 IC 7.1-3-2-7(5)(J), IC 7.1-3-12-5(d), or IC 7.1-3-27-8(a)(9).
17 (6) Alcoholic beverages served and sold by a craft
18 manufacturer under a hospitality permit must be provided by
19 the craft manufacturer.
20 (7) A person who serves alcoholic beverages for a craft
21 manufacturer must hold a valid employee's permit under
22 IC 7.1-3-18-9 or IC 7.1-3-18-11.
23 (8) A minor may be present at a temporary event only to the
24 extent that a minor is permitted to be present on the licensed
25 premises of the host permittee.
26 (9) The temporary event must meet applicable board of health
27 requirements, including all requirements concerning
28 restroom facilities.
29 (10) A holder may allow the sale of alcoholic beverages only
30 during the times prescribed under IC 7.1-3-1-14.
31 (11) The hospitality permit must be posted in the most
32 conspicuous place at the location of the temporary event.
33 (12) An excise officer, or commissioner for good cause, has the
34 authority to revoke a hospitality permit at any time before or
35 during the event.
36 SECTION 10. IC 7.1-4-4.1-5, AS AMENDED BY P.L.214-2016,
37 SECTION 29, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
38 JULY 1, 2022]: Sec. 5. (a) This section applies to the following
39 permits:
40 (1) Temporary beer permit.
41 (2) Temporary wine permit.
42 (b) Except as provided in subsection (d), a license fee for a
HB 1298—LS 7163/DI 87 18
1 temporary permit is the greater of the following:
2 (1) Two dollars ($2) per day of operation.
3 (2) The amount per day set by the commission under subsection
4 (c).
5 (c) Subject to any rates or schedules adopted by the commission, the
6 commission may set a higher daily rate for a temporary beer permit
7 under subsection (b)(2) if, in the judgment of the commission, the
8 number of persons likely to be accommodated, or any other facts
9 bearing on the value of the permit warrant the increase. However,
10 except as provided under subsection (d), the fee may not exceed one
11 thousand dollars ($1,000) per day.
12 (d) A license fee for a temporary permit issued under IC 7.1-3-6-3.8
13 is two thousand five hundred dollars ($2,500).
14 (e) A license fee for a temporary craft manufacturer hospitality
15 permit issued under 7.1-3-30 is fifty dollars ($50).
16 SECTION 11. IC 7.1-5-8-4, AS AMENDED BY P.L.285-2019,
17 SECTION 60, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
18 JULY 1, 2022]: Sec. 4. (a) It is a Class B misdemeanor for a person
19 who owns or operates a private or public restaurant or place of public
20 or private entertainment to knowingly or intentionally permit another
21 person to come into the establishment with an alcoholic beverage for
22 sale or gift, or for consumption in the establishment by that person or
23 another, or to serve a setup to a person who comes into the
24 establishment. However, the provisions of this section do not apply to
25 the following:
26 (1) A private room hired by a guest of a bona fide club or hotel
27 that holds a retail permit.
28 (2) A facility that is used in connection with the operation of a
29 paved track that is used primarily in the sport of auto racing.
30 (3) An outdoor place of public entertainment that:
31 (A) has an area of at least four (4) acres and not more than six
32 (6) acres;
33 (B) is located within one (1) mile of the White River;
34 (C) is owned and operated by a nonprofit corporation exempt
35 from federal income taxation under Section 501(c)(3) of the
36 Internal Revenue Code; and
37 (D) is used primarily in connection with live music concerts.
38 (4) A craft manufacturer (as defined in IC 7.1-3-30-1) at an
39 event held on the licensed premises of a host permittee (as
40 defined in IC 7.1-3-30-1) under a temporary craft
41 manufacturer hospitality permit issued under IC 7.1-3-30.
42 (b) An establishment operated in violation of this section is declared
HB 1298—LS 7163/DI 87 19
1 to be a public nuisance and subject to abatement as other public
2 nuisances are abated under the provisions of this title.
3 (c) This section does not apply to a person who owns or operates a
4 private or public restaurant or place of public or private entertainment
5 where a qualified organization is conducting:
6 (1) an allowable event to which IC 7.1-3-6.1 applies, and the
7 alcoholic beverage brought into the establishment is:
8 (A) in sealed bottles or cases; and
9 (B) donated to or purchased by the qualified organization to be
10 offered as a prize in the allowable event; or
11 (2) a charity auction to which IC 7.1-3-6.2 applies, and the
12 alcoholic beverage brought into the establishment is:
13 (A) in sealed bottles or cases; and
14 (B) donated to or purchased by the qualified organization to be
15 offered for sale in the charity auction.
16 (d) This section does not apply to an art instruction studio under
17 section 4.6 of this chapter.
18 SECTION 12. IC 7.1-5-8-5, AS AMENDED BY P.L.285-2019,
19 SECTION 62, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
20 JULY 1, 2022]: Sec. 5. (a) This section does not apply to a person who,
21 on or about a licensed premises, carries, conveys, or consumes beer or
22 wine:
23 (1) described in IC 7.1-1-2-3(a)(4); and
24 (2) not sold or offered for sale.
25 (b) This section does not apply to a person at a facility that is used
26 in connection with the operation of a track that is used primarily in the
27 sport of auto racing.
28 (c) This section does not apply to a person at an outdoor place of
29 public entertainment that:
30 (1) has an area of at least four (4) acres and not more than six (6)
31 acres;
32 (2) is located within one (1) mile of the White River;
33 (3) is owned and operated by a nonprofit corporation exempt from
34 federal income taxation under Section 501(c)(3) of the Internal
35 Revenue Code; and
36 (4) is used primarily in connection with live music concerts.
37 (d) This section does not apply to a person who brings wine into an
38 art instruction studio or consumes wine that is brought into the art
39 instruction studio in accordance with section 4.6 of this chapter.
40 (e) This section does not apply to a craft manufacturer (as
41 defined in IC 7.1-3-30-1) at an event held on the licensed premises
42 of a host permittee (as defined in IC 7.1-3-30-1) under a temporary
HB 1298—LS 7163/DI 87 20
1 craft manufacturer hospitality permit issued under IC 7.1-3-30.
2 (e) (f) It is a Class C misdemeanor for a person, for the person's own
3 use, to knowingly carry on, convey to, or consume on or about the
4 licensed premises of a permittee an alcoholic beverage that was not
5 then and there purchased from that permittee.
6 SECTION 13. IC 7.1-5-8-6, AS AMENDED BY P.L.153-2015,
7 SECTION 14, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
8 JULY 1, 2022]: Sec. 6. (a) It is a Class C misdemeanor for a person to
9 knowingly carry liquor into a restaurant or place of public
10 entertainment for the purpose of consuming it, displaying it, or selling,
11 furnishing, or giving it away to another person on the premises, or for
12 the purpose of having it served to himself or another person, then and
13 there. It is a Class C misdemeanor to knowingly consume liquor
14 brought into a public establishment in violation of this section.
15 (b) This section does not apply to a person at an outdoor place of
16 public entertainment that:
17 (1) has an area of at least four (4) acres and not more than six (6)
18 acres;
19 (2) is located within one (1) mile of the White River;
20 (3) is owned and operated by a nonprofit corporation exempt from
21 federal income taxation under Section 501(c)(3) of the Internal
22 Revenue Code; and
23 (4) is used primarily in connection with live music concerts.
24 (c) This section does not apply to a person who carries liquor into
25 a restaurant or place of public entertainment where a qualified
26 organization is conducting:
27 (1) an allowable event to which IC 7.1-3-6.1 applies, and the
28 liquor brought into the establishment is:
29 (A) in sealed bottles or cases; and
30 (B) donated to or purchased by the qualified organization to be
31 offered as a prize in the allowable event; or
32 (2) a charity auction to which IC 7.1-3-6.2 applies, and the liquor
33 brought into the establishment is:
34 (A) in sealed bottles or cases; and
35 (B) donated to or purchased by the qualified organization to be
36 offered for sale in the charity auction.
37 (d) This section does not apply to a craft manufacturer (as
38 defined in IC 7.1-3-30-1) at an event held on the licensed premises
39 of a host permittee (as defined in IC 7.1-3-30-1) under a temporary
40 craft manufacturer hospitality permit issued under IC 7.1-3-30.
41 SECTION 14. [EFFECTIVE JULY 1, 2022] (a) The commission
42 shall amend 905 IAC 1-41-2 to conform to IC 7.1-3-20-29, as
HB 1298—LS 7163/DI 87 21
1 amended by this act.
2 (b) In amending the rules as required by this SECTION, the
3 commission may adopt emergency rules in the manner provided by
4 IC 4-22-2-37.1.
5 (c) Notwithstanding IC 4-22-2-37.1(g), an emergency rule
6 adopted by the commission under this SECTION expires on the
7 date on which a rule that supersedes the emergency rule is adopted
8 by the commission under IC 4-22-2-24 through IC 4-22-2-36.
9 (d) This SECTION expires July 1, 2024.
HB 1298—LS 7163/DI 87 22
COMMITTEE REPORT
Mr. Speaker: Your Committee on Public Policy, to which was
referred House Bill 1298, has had the same under consideration and
begs leave to report the same back to the House with the
recommendation that said bill be amended as follows:
Delete AM129802, as adopted by the committee on public policy on
January 12, 2022.
Page 5, line 5, after "section" delete "is subject to the".
Page 5, delete line 6.
Page 5, line 7, delete "(1) The ordinance".
Page 5, run in lines 5 through 8.
Page 5, line 9, delete "(2)".
Page 5, line 9, delete "expires one (1) year after the date the" and
insert "may not regulate a permittee's sale or service of alcoholic
beverages. However, this section may not be construed to prohibit
a legislative body from adopting an ordinance to regulate a
farmers' market in a manner that does not regulate a permittee's
sale or service of alcoholic beverages.".
Page 5, delete lines 10 through 17, begin a new paragraph and
insert:
"(c) Nothing in this section may be interpreted to:
(1) preclude an operator of a farmers' market from allowing
more than one (1) permittee to sell and serve samples at the
same farmers' market, if an ordinance is adopted that allows
that permittee to sell and serve samples under:
(A) this section;
(B) IC 7.1-3-12-5.3 (farm wineries); or
(C) IC 7.1-3-27-8.3 (artisan distilleries); or
(2) require an operator of a farmers' market to allow
breweries to sell and serve samples of beer at the farmers'
market if an ordinance is adopted under this section.
(d) At a farmers' market held under this section, a sample size
of beer may not exceed two (2) ounces.
(e) A brewery's sale and service at a farmers' market under this
section does not count toward the maximum days that a brewery
is permitted to participate in a trade show or exhibition under
IC 7.1-3-2-7(5)(J).".
Page 8, line 35, after "section" delete "is subject to the".
Page 8, delete line 36.
Page 8, line 37, delete "(1) The ordinance".
Page 8, run in lines 35 through 38.
Page 8, line 39, delete "(2)".
HB 1298—LS 7163/DI 87 23
Page 8, line 39, delete "expires one (1) year after the date the" and
insert "may not regulate a permittee's sale or service of alcoholic
beverages. However, this section may not be construed to prohibit
a legislative body from adopting an ordinance to regulate a
farmers' market in a manner that does not regulate a permittee's
sale or service of alcoholic beverages.".
Page 8, delete lines 40 through 42, begin a new paragraph and
insert:
"(c) Nothing in this section may be interpreted to:
(1) preclude an operator of a farmers' market from allowing
more than one (1) permittee to sell and serve samples at the
same farmers' market, if an ordinance is adopted that allows
that permittee to sell and serve samples under:
(A) this section;
(B) IC 7.1-3-2-7.3 (breweries); or
(C) IC 7.1-3-27-8.3 (artisan distilleries); or
(2) require an operator of a farmers' market to allow farm
wineries to sell and serve samples of wine at the farmers'
market if an ordinance is adopted under this section.
(d) At a farmers' market held under this section, a sample size
of:
(1) wine, other than hard cider, may not exceed one (1) ounce;
and
(2) hard cider may not exceed two (2) ounces.
(e) A farm winery's sale and service at a farmers' market under
this section does not count toward the maximum days that a farm
winery is permitted to participate in a trade show or exhibition
under IC 7.1-3-12-5(d).".
Page 9, delete lines 1 through 6, begin a new paragraph and insert:
"SECTION 5. IC 7.1-3-20-29, AS AMENDED BY P.L.150-2021,
SECTION 4 AND P.L.194-2021, SECTION 46, IS AMENDED TO
READ AS FOLLOWS [EFFECTIVE JULY 1, 2022]: Sec. 29. (a) As
used in this section, "food hall" means the premises:
(1) located within a retail shopping and food service district; and
(2) to which a master permit is issued under this section.
(b) As used in this section, "master permit" means a food hall master
permit issued under this section.
(c) Except as provided in subsection (d), the commission may issue
a master permit, which is a three-way retailer's permit for on premises
consumption, to a food hall located in a retail shopping and food
service district that meets the following requirements:
(1) The district consists of an area that:
HB 1298—LS 7163/DI 87 24
(A) has been redeveloped, renovated, or environmentally
remediated in part with grants from the federal, state, or local
government under IC 36-7-11; and
(B) is entirely located within an incorporated city or town.
(2) The district consists of land and a building or group of
buildings that are part of a common development.
(3) The district is located within a locally designated historic
district under IC 36-7-11 established by a city or town ordinance.
(4) The district contains at least one (1) building that:
(A) is on the list of the National Register for Historic Places or
qualifies as a historic building worthy of preservation under
IC 36-7-11; and
(B) has been approved for present commercial use by the local
historic preservation commission of the city or town.
(d) Subsection (c)(3) and (c)(4) does not apply to a food hall that:
(1) is located within a certified technology park established under
IC 36-7-32; and
(2) operates within a previously vacant building that was, or
within a complex of buildings that were:
(A) placed in service at least twenty-five (25) years prior to the
redevelopment of the building or buildings; and
(B) owned by a unit of local government or a public charitable
trust prior to redevelopment.
(e) The commission may issue a master permit to the owner or
developer of a food hall. The food hall constitutes a single permit
premises that:
(1) contains not less than seven (7) distinct, nonaffiliated retail
food and beverage vendors, each of which may apply for a food
hall vendor permit under section 30 of this chapter; and
(2) has a seating capacity of the type traditionally designed for
food and drink for at least one hundred (100) people.
(f) An applicant for a master permit shall post notice and appear in
front of the local board in which the permit premises is situated. The
local board shall determine the eligibility of the applicant under this
section and hear evidence in support of or against the master permit
location. A master permit may not be transferred to a location outside
the food hall permit premises. A permit that is inactive for more than
six (6) months shall revert back to the commission or may be deposited
with the commission under IC 7.1-3-1.1 with the commission's
permission.
(g) A master permit authorized by this section may be issued
without regard to the proximity provisions of IC 7.1-3-21-11 or the
HB 1298—LS 7163/DI 87 25
quota provisions of IC 7.1-3-22.
(h) The commission may not require physical separation
between a bar area and a dining area in a food hall.
SECTION 6. IC 7.1-3-27-5, AS AMENDED BY P.L.270-2017,
SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2022]: Sec. 5. (a) Except as provided in section 7 of this
chapter, an applicant for an artisan distiller's permit must meet all the
following requirements to be eligible for an artisan distiller's permit:
(1) The permit applicant must hold one (1) of the following
permits for the eighteen (18) six (6) months immediately
preceding the date of the application:
(A) A farm winery permit under IC 7.1-3-12.
(B) A brewer's permit issued under IC 7.1-3-2-2(b).
(C) A distiller's permit under IC 7.1-3-7.
(2) The permit applicant may not have more than one (1) violation
of this title during the eighteen (18) months immediately
preceding the date of the application.
(3) The permit applicant may not have any violation of this title
during the twelve (12) month period immediately preceding the
date of the permit application.
(b) As used in this subsection, "qualifying permit" means a farm
winery, brewer's, or distiller's permit under subsection (a)(1)(A),
(a)(1)(B), or (a)(1)(C) that is required in order to hold an artisan
distiller's permit. The same persons must directly or indirectly own and
control more than fifty percent (50%) of the entity that holds the
qualifying permit and the artisan distiller's permit.".
Page 11, line 36, after "liquor" insert ", liqueur, or cordials".
Page 11, line 40, after "section" delete "is subject to the".
Page 11, delete line 41.
Page 11, line 42, delete "(1) The ordinance".
Page 11, run in line 40 through page 12, line 1.
Page 12, line 2, delete "(2)".
Page 12, line 2, delete "expires one (1) year after the date the" and
insert "may not regulate a permittee's sale or service of alcoholic
beverages. However, this section may not be construed to prohibit
a legislative body from adopting an ordinance to regulate a
farmers' market in a manner that does not regulate a permittee's
sale or service of alcoholic beverages.".
Page 12, delete lines 3 through 10, begin a new paragraph and
insert:
"(c) Nothing in this section may be interpreted to:
(1) preclude an operator of a farmers' market from allowing
HB 1298—LS 7163/DI 87 26
more than one (1) permittee to sell and serve samples at the
same farmers' market, if an ordinance is adopted that allows
that permittee to sell and serve samples under:
(A) this section;
(B) IC 7.1-3-2-7.3 (breweries); or
(C) IC 7.1-3-12-5.3 (farm wineries); or
(2) require an operator of a farmers' market to allow artisan
distilleries to sell and serve samples of liquor, liqueur, or
cordials at the farmers' market if an ordinance is adopted
under this section.
(d) At a farmers' market held under this section, a sample size
of:
(1) liqueur or cordials may not exceed one-half (1/2) ounce;
and
(2) liquor may not exceed four-tenths (0.4) ounce.
A permittee may allow a customer to sample a combined total of
two (2) liqueur, cordials, or liquor samples per day.
(e) An artisan distillery's sale and service at a farmers' market
under this section does not count toward the maximum days that
an artisan distillery is permitted to participate in a trade show or
exhibition under IC 7.1-3-27-8(a)(9).
SECTION 8. IC 7.1-3-30 IS ADDED TO THE INDIANA CODE
AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2022]:
Chapter 30. Craft Manufacturer Hospitality Permit.
Sec. 1. The following terms apply throughout this chapter:
(1) "Craft manufacturer" means a person who holds:
(A) a small brewery permit under IC 7.1-3-2-7(5);
(B) a farm winery permit under IC 7.1-3-12; or
(C) an artisan distiller's permit under IC 7.1-3-27.
(2) "Holder" means the applicant for a craft manufacturer
hospitality permit.
(3) "Permittee" means a person who holds a permit under this
title.
Sec. 2. (a) A holder may apply to the commission for a craft
manufacturer hospitality permit.
(b) There is no fee for a craft manufacturer hospitality permit.
(c) The commission shall issue a craft manufacturer hospitality
permit to a individual who applies under subsection (a).
Sec. 3. A craft manufacturer who obtains approval from a
holder may do the following on the licensed premises of the holder:
(1) Display alcoholic beverages manufactured by the craft
HB 1298—LS 7163/DI 87 27
manufacturer.
(2) Allow customers to sample alcoholic beverages
manufactured by the craft manufacturer.
(3) Sell alcoholic beverages in the manner permitted by
IC 7.1-3-2-7(5)(J), IC 7.1-3-12-5(d), IC 7.1-3-27-8(a)(9).
SECTION 9. IC 7.1-5-8-4, AS AMENDED BY P.L.285-2019,
SECTION 60, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2022]: Sec. 4. (a) It is a Class B misdemeanor for a person
who owns or operates a private or public restaurant or place of public
or private entertainment to knowingly or intentionally permit another
person to come into the establishment with an alcoholic beverage for
sale or gift, or for consumption in the establishment by that person or
another, or to serve a setup to a person who comes into the
establishment. However, the provisions of this section do not apply to
the following:
(1) A private room hired by a guest of a bona fide club or hotel
that holds a retail permit.
(2) A facility that is used in connection with the operation of a
paved track that is used primarily in the sport of auto racing.
(3) An outdoor place of public entertainment that:
(A) has an area of at least four (4) acres and not more than six
(6) acres;
(B) is located within one (1) mile of the White River;
(C) is owned and operated by a nonprofit corporation exempt
from federal income taxation under Section 501(c)(3) of the
Internal Revenue Code; and
(D) is used primarily in connection with live music concerts.
(4) The holder of a craft manufacturer hospitality permit:
(A) in the manner allowed under IC 7.1-3-30; and
(B) who has obtained the approval of the person who owns
or operates the private or public restaurant or place of
public or private entertainment.
(b) An establishment operated in violation of this section is declared
to be a public nuisance and subject to abatement as other public
nuisances are abated under the provisions of this title.
(c) This section does not apply to a person who owns or operates a
private or public restaurant or place of public or private entertainment
where a qualified organization is conducting:
(1) an allowable event to which IC 7.1-3-6.1 applies, and the
alcoholic beverage brought into the establishment is:
(A) in sealed bottles or cases; and
(B) donated to or purchased by the qualified organization to be
HB 1298—LS 7163/DI 87 28
offered as a prize in the allowable event; or
(2) a charity auction to which IC 7.1-3-6.2 applies, and the
alcoholic beverage brought into the establishment is:
(A) in sealed bottles or cases; and
(B) donated to or purchased by the qualified organization to be
offered for sale in the charity auction.
(d) This section does not apply to an art instruction studio under
section 4.6 of this chapter.
SECTION 10. IC 7.1-5-8-5, AS AMENDED BY P.L.285-2019,
SECTION 62, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2022]: Sec. 5. (a) This section does not apply to a person who,
on or about a licensed premises, carries, conveys, or consumes beer or
wine:
(1) described in IC 7.1-1-2-3(a)(4); and
(2) not sold or offered for sale.
(b) This section does not apply to a person at a facility that is used
in connection with the operation of a track that is used primarily in the
sport of auto racing.
(c) This section does not apply to a person at an outdoor place of
public entertainment that:
(1) has an area of at least four (4) acres and not more than six (6)
acres;
(2) is located within one (1) mile of the White River;
(3) is owned and operated by a nonprofit corporation exempt from
federal income taxation under Section 501(c)(3) of the Internal
Revenue Code; and
(4) is used primarily in connection with live music concerts.
(d) This section does not apply to a person who brings wine into an
art instruction studio or consumes wine that is brought into the art
instruction studio in accordance with section 4.6 of this chapter.
(e) This section does not apply to the holder of a craft
manufacturer hospitality permit:
(1) in the manner allowed under IC 7.1-3-30; and
(2) who has obtained the approval of the permittee of the
licensed premises.
(e) (f) It is a Class C misdemeanor for a person, for the person's own
use, to knowingly carry on, convey to, or consume on or about the
licensed premises of a permittee an alcoholic beverage that was not
then and there purchased from that permittee.
SECTION 11. IC 7.1-5-8-6, AS AMENDED BY P.L.153-2015,
SECTION 14, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2022]: Sec. 6. (a) It is a Class C misdemeanor for a person to
HB 1298—LS 7163/DI 87 29
knowingly carry liquor into a restaurant or place of public
entertainment for the purpose of consuming it, displaying it, or selling,
furnishing, or giving it away to another person on the premises, or for
the purpose of having it served to himself or another person, then and
there. It is a Class C misdemeanor to knowingly consume liquor
brought into a public establishment in violation of this section.
(b) This section does not apply to a person at an outdoor place of
public entertainment that:
(1) has an area of at least four (4) acres and not more than six (6)
acres;
(2) is located within one (1) mile of the White River;
(3) is owned and operated by a nonprofit corporation exempt from
federal income taxation under Section 501(c)(3) of the Internal
Revenue Code; and
(4) is used primarily in connection with live music concerts.
(c) This section does not apply to a person who carries liquor into
a restaurant or place of public entertainment where a qualified
organization is conducting:
(1) an allowable event to which IC 7.1-3-6.1 applies, and the
liquor brought into the establishment is:
(A) in sealed bottles or cases; and
(B) donated to or purchased by the qualified organization to be
offered as a prize in the allowable event; or
(2) a charity auction to which IC 7.1-3-6.2 applies, and the liquor
brought into the establishment is:
(A) in sealed bottles or cases; and
(B) donated to or purchased by the qualified organization to be
offered for sale in the charity auction.
(d) This section does not apply to the holder of a craft
manufacturer hospitality permit:
(1) in the manner allowed under IC 7.1-3-30; and
(2) who has obtained the approval of the person who owns or
operates the restaurant or place of public entertainment.
SECTION 12. [EFFECTIVE JULY 1, 2022] (a) The commission
shall amend 905 IAC 1-41-2 to conform to IC 7.1-3-20-29, as
amended by this act.
(b) In amending the rules as required by this SECTION, the
commission may adopt emergency rules in the manner provided by
IC 4-22-2-37.1.
(c) Notwithstanding IC 4-22-2-37.1(g), an emergency rule
adopted by the commission under this SECTION expires on the
date on which a rule that supersedes the emergency rule is adopted
HB 1298—LS 7163/DI 87 30
by the commission under IC 4-22-2-24 through IC 4-22-2-36.
(d) This SECTION expires July 1, 2024.".
Renumber all SECTIONS consecutively.
and when so amended that said bill do pass.
(Reference is to HB 1298 as introduced.)
SMALTZ
Committee Vote: yeas 10, nays 0.
_____
HOUSE MOTION
Mr. Speaker: I move that House Bill 1298 be amended to read as
follows:
Page 15, delete lines 9 through 34, begin a new paragraph and
insert:
"SECTION 9. IC 7.1-3-30 IS ADDED TO THE INDIANA CODE
AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2022]:
Chapter 30. Temporary Craft Manufacturer Hospitality Permit
Sec. 1. The following terms apply throughout this chapter:
(1) "Craft manufacturer" means a person who holds:
(A) a small brewery permit under IC 7.1-3-2-7(5);
(B) a farm winery permit under IC 7.1-3-12; or
(C) an artisan distiller's permit under IC 7.1-3-27.
(2) "Holder" means a person who holds a temporary craft
manufacturer hospitality permit.
(3) "Hospitality permit" means a temporary craft
manufacturer hospitality permit issued under this chapter.
(4) "Host permittee" means a person who holds:
(A) a civic center permit under IC 7.1-3-1-25;
(B) a permit under IC 7.1-3-20-18 through IC 7.1-3-20-21
(hotel);
(C) a permit under IC 7.1-3-21-14 (state fair grounds);
(D) a permit under IC 7.1-3-20-16.8 (economic
development area); or
(E) a permit under IC 7.1-3-17.8 (state park).
(5) "Temporary event" means an event listed in section 4 of
this chapter for which the commission issues a hospitality
HB 1298—LS 7163/DI 87 31
permit.
Sec. 2. (a) The commission may issue a temporary craft
manufacturer hospitality permit without publication of notice or
investigation before a local board to a qualified person as provided
in this chapter. In all other respects, a hospitality permit shall be
issued, revoked, and governed by the restrictions and limitations
made in a provisional order or rule or regulation of the
commission.
(b) The commission shall issue a hospitality permit to an
applicant if the applicant:
(1) submits an application for a hospitality permit to the
commission not later than five (5) business days before the
event for which the permit is requested; and
(2) meets all requirements for a hospitality permit.
(c) If authorized by the chairman or the chairman's designee,
and at the commission's discretion, a hospitality permit may be
issued to an applicant that:
(1) submits an application for the hospitality permit to the
commission later than five (5) business days before the event
for which the hospitality permit is requested; and
(2) meets all requirements for a hospitality permit.
(d) An application submitted under this section must contain a
floor plan which demonstrates that the host permittee is not
operating a bar in the same area as the temporary event. The
premises of the temporary event must be well defined.
(e) An application submitted under this section must designate
an individual who is responsible for the event. The individual
designated under this subsection must sign the application.
Sec. 3. The commission may issue a hospitality permit to a
person who is qualified to hold a beer retailer's permit and who
has such other qualifications as the commission may prescribe by
a provisional order until it adopts a rule or regulation on the
matter. However, the special disqualifications listed in
IC 7.1-3-4-2(a)(4), IC 7.1-3-4-2(a)(9), and IC 7.1-3-4-2(a)(14) do not
apply to an applicant for a hospitality permit.
Sec. 4. The commission may issue a hospitality permit only to
allow a craft manufacturer to participate in:
(1) a convention;
(2) a trade show;
(3) an exposition; or
(4) an event similar to one (1) or more of the events described
in subdivisions (1) through (3);
HB 1298—LS 7163/DI 87 32
on the licensed premises of a host permittee.
Sec. 5. The commission may issue a hospitality permit for a term
not to exceed fifteen (15) consecutive days from its issuance.
However, if an emergency exists, in the judgment of the
commission, a hospitality permit may be renewed for a period not
to exceed fifteen (15) additional consecutive days.
Sec. 6. A hospitality permit issued under this chapter is subject
to the following:
(1) Except as provided in subdivision (4), alcoholic beverages
may be sold by a craft manufacturer only for consumption on
the licensed premises of the host permittee.
(2) The sale of alcoholic beverages under a hospitality permit
is subject to the same restrictions that apply to the sale of beer
by the holder of a beer retailer's permit.
(3) A holder is not entitled to sell at wholesale or for carry out
from the licensed premises of the host permittee.
(4) Notwithstanding subdivisions (2) and (3), a craft
manufacturer may sell alcoholic beverages for carry out in an
original container in the manner permitted for a trade show
or exposition held under:
(A) IC 7.1-3-2-7(5)(J) (brewery);
(B) IC 7.1-3-12-5(d) (farm winery); or
(C) IC 7.1-3-27-8(a)(9) (artisan distillery).
(5) A craft manufacturer's participation in a temporary event
counts against the maximum days that the craft manufacturer
is permitted to participate in a trade show or exposition under
IC 7.1-3-2-7(5)(J), IC 7.1-3-12-5(d), or IC 7.1-3-27-8(a)(9).
(6) Alcoholic beverages served and sold by a craft
manufacturer under a hospitality permit must be provided by
the craft manufacturer.
(7) A person who serves alcoholic beverages for a craft
manufacturer must hold a valid employee's permit under
IC 7.1-3-18-9 or IC 7.1-3-18-11.
(8) A minor may be present at a temporary event only to the
extent that a minor is permitted to be present on the licensed
premises of the host permittee.
(9) The temporary event must meet applicable board of health
requirements, including all requirements concerning
restroom facilities.
(10) A holder may allow the sale of alcoholic beverages only
during the times prescribed under IC 7.1-3-1-14.
(11) The hospitality permit must be posted in the most
HB 1298—LS 7163/DI 87 33
conspicuous place at the location of the temporary event.
(12) An excise officer, or commissioner for good cause, has the
authority to revoke a hospitality permit at any time before or
during the event.
SECTION 10. IC 7.1-4-4.1-5, AS AMENDED BY P.L.214-2016,
SECTION 29, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2022]: Sec. 5. (a) This section applies to the following
permits:
(1) Temporary beer permit.
(2) Temporary wine permit.
(b) Except as provided in subsection (d), a license fee for a
temporary permit is the greater of the following:
(1) Two dollars ($2) per day of operation.
(2) The amount per day set by the commission under subsection
(c).
(c) Subject to any rates or schedules adopted by the commission, the
commission may set a higher daily rate for a temporary beer permit
under subsection (b)(2) if, in the judgment of the commission, the
number of persons likely to be accommodated, or any other facts
bearing on the value of the permit warrant the increase. However,
except as provided under subsection (d), the fee may not exceed one
thousand dollars ($1,000) per day.
(d) A license fee for a temporary permit issued under IC 7.1-3-6-3.8
is two thousand five hundred dollars ($2,500).
(e) A license fee for a temporary craft manufacturer hospitality
permit issued under 7.1-3-30 is fifty dollars ($50).".
Page 16, line 15, delete "The holder of a craft manufacturer
hospitality permit:" and insert "A craft manufacturer (as defined in
IC 7.1-3-30-1) at an event held on the licensed premises of a host
permittee (as defined in IC 7.1-3-30-1) under a temporary craft
manufacturer hospitality permit issued under IC 7.1-3-30.".
Page 16, delete lines 16 through 19.
Page 17, line 18, delete "the holder of a craft" and insert "a craft
manufacturer (as defined in IC 7.1-3-30-1) at an event held on the
licensed premises of a host permittee (as defined in IC 7.1-3-30-1)
under a temporary craft manufacturer hospitality permit issued
under IC 7.1-3-30.".
Page 17, delete lines 19 through 22.
Page 18, line 16, delete "the holder of a craft" and insert "a craft
manufacturer (as defined in IC 7.1-3-30-1) at an event held on the
licensed premises of a host permittee (as defined in IC 7.1-3-30-1)
under a temporary craft manufacturer hospitality permit issued
HB 1298—LS 7163/DI 87 34
under IC 7.1-3-30.".
Page 18, delete lines 17 through 20.
Renumber all SECTIONS consecutively.
(Reference is to HB 1298 Digest Correction, as printed January 18,
2022.)
BARTELS
HB 1298—LS 7163/DI 87