*EH1298.1* February 25, 2022 ENGROSSED HOUSE BILL No. 1298 _____ DIGEST OF HB 1298 (Updated February 23, 2022 2:32 pm - DI 147) Citations Affected: IC 7.1-3; IC 7.1-4; IC 7.1-5; noncode. Synopsis: Alcoholic beverages. 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 (SENATE SPONSOR — ALTING) 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. January 27, 2022, engrossed. January 31, 2022, read third time, passed. Yeas 88, nays 2. SENATE ACTION February 8, 2022, read first time and referred to Committee on Public Policy. February 24, 2022, amended, reported favorably — Do Pass. EH 1298—LS 7163/DI 87 February 25, 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. ENGROSSED 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 7.1-3-20-29, AS AMENDED BY P.L.150-2021, 2 SECTION 4 AND P.L.194-2021, SECTION 46, IS AMENDED TO 3 READ AS FOLLOWS [EFFECTIVE JULY 1, 2022]: Sec. 29. (a) As 4 used in this section, "food hall" means the premises: 5 (1) located within a retail shopping and food service district; and 6 (2) to which a master permit is issued under this section. 7 (b) As used in this section, "master permit" means a food hall master 8 permit issued under this section. 9 (c) Except as provided in subsection (d), the commission may issue 10 a master permit, which is a three-way retailer's permit for on premises 11 consumption, to a food hall located in a retail shopping and food 12 service district that meets the following requirements: 13 (1) The district consists of an area that: 14 (A) has been redeveloped, renovated, or environmentally 15 remediated in part with grants from the federal, state, or local 16 government under IC 36-7-11; and 17 (B) is entirely located within an incorporated city or town. EH 1298—LS 7163/DI 87 2 1 (2) The district consists of land and a building or group of 2 buildings that are part of a common development. 3 (3) The district is located within a locally designated historic 4 district under IC 36-7-11 established by a city or town ordinance. 5 (4) The district contains at least one (1) building that: 6 (A) is on the list of the National Register for Historic Places or 7 qualifies as a historic building worthy of preservation under 8 IC 36-7-11; and 9 (B) has been approved for present commercial use by the local 10 historic preservation commission of the city or town. 11 (d) Subsection (c)(3) and (c)(4) does not apply to a food hall that: 12 (1) is located within a certified technology park established under 13 IC 36-7-32; and 14 (2) operates within a previously vacant building that was, or 15 within a complex of buildings that were: 16 (A) placed in service at least twenty-five (25) years prior to the 17 redevelopment of the building or buildings; and 18 (B) owned by a unit of local government or a public charitable 19 trust prior to redevelopment. 20 (e) The commission may issue a master permit to the owner or 21 developer of a food hall. The food hall constitutes a single permit 22 premises that: 23 (1) contains not less than seven (7) distinct, nonaffiliated retail 24 food and beverage vendors, each of which may apply for a food 25 hall vendor permit under section 30 of this chapter; and 26 (2) has a seating capacity of the type traditionally designed for 27 food and drink for at least one hundred (100) people. 28 (f) An applicant for a master permit shall post notice and appear in 29 front of the local board in which the permit premises is situated. The 30 local board shall determine the eligibility of the applicant under this 31 section and hear evidence in support of or against the master permit 32 location. A master permit may not be transferred to a location outside 33 the food hall permit premises. A permit that is inactive for more than 34 six (6) months shall revert back to the commission or may be deposited 35 with the commission under IC 7.1-3-1.1 with the commission's 36 permission. 37 (g) A master permit authorized by this section may be issued 38 without regard to the proximity provisions of IC 7.1-3-21-11 or the 39 quota provisions of IC 7.1-3-22. 40 (h) The commission may not require physical separation 41 between a bar area and a dining area in a food hall. 42 SECTION 2. IC 7.1-3-27-5, AS AMENDED BY P.L.270-2017, EH 1298—LS 7163/DI 87 3 1 SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE 2 JULY 1, 2022]: Sec. 5. (a) Except as provided in section 7 of this 3 chapter, an applicant for an artisan distiller's permit must meet all the 4 following requirements to be eligible for an artisan distiller's permit: 5 (1) The permit applicant must hold one (1) of the following 6 permits for the eighteen (18) six (6) months immediately 7 preceding the date of the application: 8 (A) A farm winery permit under IC 7.1-3-12. 9 (B) A brewer's permit issued under IC 7.1-3-2-2(b). 10 (C) A distiller's permit under IC 7.1-3-7. 11 (2) The permit applicant may not have more than one (1) violation 12 of this title during the eighteen (18) months immediately 13 preceding the date of the application. 14 (3) The permit applicant may not have any violation of this title 15 during the twelve (12) month period immediately preceding the 16 date of the permit application. 17 (b) As used in this subsection, "qualifying permit" means a farm 18 winery, brewer's, or distiller's permit under subsection (a)(1)(A), 19 (a)(1)(B), or (a)(1)(C) that is required in order to hold an artisan 20 distiller's permit. The same persons must directly or indirectly own and 21 control more than fifty percent (50%) of the entity that holds the 22 qualifying permit and the artisan distiller's permit. 23 SECTION 3. IC 7.1-3-30 IS ADDED TO THE INDIANA CODE 24 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE 25 JULY 1, 2022]: 26 Chapter 30. Temporary Craft Manufacturer Hospitality Permit 27 Sec. 1. The following terms apply throughout this chapter: 28 (1) "Craft manufacturer" means a person who holds: 29 (A) a small brewery permit under IC 7.1-3-2-7(5); 30 (B) a farm winery permit under IC 7.1-3-12; or 31 (C) an artisan distiller's permit under IC 7.1-3-27. 32 (2) "Holder" means a person who holds a temporary craft 33 manufacturer hospitality permit. 34 (3) "Hospitality permit" means a temporary craft 35 manufacturer hospitality permit issued under this chapter. 36 (4) "Host permittee" means a person who holds: 37 (A) a civic center permit under IC 7.1-3-1-25; 38 (B) a permit under IC 7.1-3-20-18 through IC 7.1-3-20-21 39 (hotel); 40 (C) a permit under IC 7.1-3-21-14 (state fair grounds); 41 (D) a permit under IC 7.1-3-20-16.8 (economic 42 development area); or EH 1298—LS 7163/DI 87 4 1 (E) a permit under IC 7.1-3-17.8 (state park). 2 (5) "Temporary event" means an event listed in section 4 of 3 this chapter for which the commission issues a hospitality 4 permit. 5 Sec. 2. (a) The commission may issue a temporary craft 6 manufacturer hospitality permit without publication of notice or 7 investigation before a local board to a qualified person as provided 8 in this chapter. In all other respects, a hospitality permit shall be 9 issued, revoked, and governed by the restrictions and limitations 10 made in a provisional order or rule or regulation of the 11 commission. 12 (b) The commission shall issue a hospitality permit to an 13 applicant if the applicant: 14 (1) submits an application for a hospitality permit to the 15 commission not later than five (5) business days before the 16 event for which the permit is requested; 17 (2) meets all requirements for a hospitality permit; and 18 (3) pays the license fee for a hospitality permit, as described 19 in IC 7.1-4-4.1-5.1. 20 (c) If authorized by the chairman or the chairman's designee, 21 and at the commission's discretion, a hospitality permit may be 22 issued to an applicant that: 23 (1) submits an application for the hospitality permit to the 24 commission later than five (5) business days before the event 25 for which the hospitality permit is requested; and 26 (2) meets all requirements for a hospitality permit. 27 (d) An application submitted under this section must contain a 28 floor plan which demonstrates that the host permittee is not 29 operating a bar in the same area as the temporary event. The 30 premises of the temporary event must be well defined. 31 (e) An application submitted under this section must: 32 (1) identify each craft manufacturer that will participate in 33 the temporary event; 34 (2) designate an individual who is responsible for the event; 35 and 36 (3) be signed by the individual described in subdivision (2). 37 Sec. 3. The commission may issue a hospitality permit to a 38 person who is qualified to hold a beer retailer's permit and who 39 has such other qualifications as the commission may prescribe by 40 a provisional order until it adopts a rule or regulation on the 41 matter. However, the special disqualifications listed in 42 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 EH 1298—LS 7163/DI 87 5 1 apply to an applicant for a hospitality permit. 2 Sec. 4. The commission may issue a hospitality permit only to 3 allow a craft manufacturer to participate in: 4 (1) a convention; 5 (2) a trade show; 6 (3) an exposition; or 7 (4) an event similar to one (1) or more of the events described 8 in subdivisions (1) through (3); 9 on the licensed premises of a host permittee. 10 Sec. 5. The commission may issue a hospitality permit for a term 11 not to exceed fifteen (15) consecutive days from its issuance. 12 However, if an emergency exists, in the judgment of the 13 commission, a hospitality permit may be renewed for a period not 14 to exceed fifteen (15) additional consecutive days. 15 Sec. 6. A hospitality permit issued under this chapter is subject 16 to the following: 17 (1) Except as provided in subdivision (4), alcoholic beverages 18 may be sold by a craft manufacturer only for consumption on 19 the licensed premises of the host permittee. 20 (2) The sale of alcoholic beverages under a hospitality permit 21 is subject to the same restrictions that apply to the sale of beer 22 by the holder of a beer retailer's permit. 23 (3) A holder is not entitled to sell at wholesale or for carry out 24 from the licensed premises of the host permittee. 25 (4) Notwithstanding subdivisions (2) and (3), a craft 26 manufacturer may sell alcoholic beverages for carry out in an 27 original container in the manner permitted for a trade show 28 or exposition held under: 29 (A) IC 7.1-3-2-7(5)(J) (brewery); 30 (B) IC 7.1-3-12-5(d) (farm winery); or 31 (C) IC 7.1-3-27-8(a)(9) (artisan distillery). 32 (5) A craft manufacturer's participation in a temporary event 33 counts against the maximum days that the craft manufacturer 34 is permitted to participate in a trade show or exposition under 35 IC 7.1-3-2-7(5)(J), IC 7.1-3-12-5(d), or IC 7.1-3-27-8(a)(9). 36 (6) Alcoholic beverages served and sold by a craft 37 manufacturer under a hospitality permit must be provided by 38 the craft manufacturer. 39 (7) A person who serves alcoholic beverages for a craft 40 manufacturer must hold a valid employee's permit under 41 IC 7.1-3-18-9 or IC 7.1-3-18-11. 42 (8) A minor may be present at a temporary event: EH 1298—LS 7163/DI 87 6 1 (A) only to the extent that a minor is permitted to be 2 present on the licensed premises of the host permittee; and 3 (B) if the minor is in the company of a parent, legal 4 guardian, or custodian, or family member who is at least 5 twenty-one (21) years of age. 6 (9) The temporary event must meet applicable board of health 7 requirements, including all requirements concerning 8 restroom facilities. 9 (10) A holder may allow the sale of alcoholic beverages only 10 during the times prescribed under IC 7.1-3-1-14. 11 (11) The hospitality permit must be posted in the most 12 conspicuous place at the location of the temporary event. 13 (12) An excise officer, or commissioner for good cause, has the 14 authority to revoke a hospitality permit at any time before or 15 during the event. 16 SECTION 4. IC 7.1-4-4.1-5.1 IS ADDED TO THE INDIANA 17 CODE AS A NEW SECTION TO READ AS FOLLOWS 18 [EFFECTIVE JULY 1, 2022]: Sec. 5.1. The license fee for a 19 temporary craft manufacturer hospitality permit issued under 20 IC 7.1-3-30 is an amount determined in STEP THREE of the 21 following formula: 22 STEP ONE: Determine the number of days each craft 23 manufacturer will participate in the temporary event. 24 STEP TWO: Determine the sum of all the numbers 25 determined under STEP ONE. 26 STEP THREE: Multiply the number determined in STEP 27 TWO by fifty dollars ($50). 28 SECTION 5. IC 7.1-5-8-4, AS AMENDED BY P.L.285-2019, 29 SECTION 60, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE 30 JULY 1, 2022]: Sec. 4. (a) It is a Class B misdemeanor for a person 31 who owns or operates a private or public restaurant or place of public 32 or private entertainment to knowingly or intentionally permit another 33 person to come into the establishment with an alcoholic beverage for 34 sale or gift, or for consumption in the establishment by that person or 35 another, or to serve a setup to a person who comes into the 36 establishment. However, the provisions of this section do not apply to 37 the following: 38 (1) A private room hired by a guest of a bona fide club or hotel 39 that holds a retail permit. 40 (2) A facility that is used in connection with the operation of a 41 paved track that is used primarily in the sport of auto racing. 42 (3) An outdoor place of public entertainment that: EH 1298—LS 7163/DI 87 7 1 (A) has an area of at least four (4) acres and not more than six 2 (6) acres; 3 (B) is located within one (1) mile of the White River; 4 (C) is owned and operated by a nonprofit corporation exempt 5 from federal income taxation under Section 501(c)(3) of the 6 Internal Revenue Code; and 7 (D) is used primarily in connection with live music concerts. 8 (4) A craft manufacturer (as defined in IC 7.1-3-30-1) at an 9 event held on the licensed premises of a host permittee (as 10 defined in IC 7.1-3-30-1) under a temporary craft 11 manufacturer hospitality permit issued under IC 7.1-3-30. 12 (b) An establishment operated in violation of this section is declared 13 to be a public nuisance and subject to abatement as other public 14 nuisances are abated under the provisions of this title. 15 (c) This section does not apply to a person who owns or operates a 16 private or public restaurant or place of public or private entertainment 17 where a qualified organization is conducting: 18 (1) an allowable event to which IC 7.1-3-6.1 applies, and the 19 alcoholic beverage brought into the establishment is: 20 (A) in sealed bottles or cases; and 21 (B) donated to or purchased by the qualified organization to be 22 offered as a prize in the allowable event; or 23 (2) a charity auction to which IC 7.1-3-6.2 applies, and the 24 alcoholic beverage brought into the establishment is: 25 (A) in sealed bottles or cases; and 26 (B) donated to or purchased by the qualified organization to be 27 offered for sale in the charity auction. 28 (d) This section does not apply to an art instruction studio under 29 section 4.6 of this chapter. 30 SECTION 6. IC 7.1-5-8-5, AS AMENDED BY P.L.285-2019, 31 SECTION 62, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE 32 JULY 1, 2022]: Sec. 5. (a) This section does not apply to a person who, 33 on or about a licensed premises, carries, conveys, or consumes beer or 34 wine: 35 (1) described in IC 7.1-1-2-3(a)(4); and 36 (2) not sold or offered for sale. 37 (b) This section does not apply to a person at a facility that is used 38 in connection with the operation of a track that is used primarily in the 39 sport of auto racing. 40 (c) This section does not apply to a person at an outdoor place of 41 public entertainment that: 42 (1) has an area of at least four (4) acres and not more than six (6) EH 1298—LS 7163/DI 87 8 1 acres; 2 (2) is located within one (1) mile of the White River; 3 (3) is owned and operated by a nonprofit corporation exempt from 4 federal income taxation under Section 501(c)(3) of the Internal 5 Revenue Code; and 6 (4) is used primarily in connection with live music concerts. 7 (d) This section does not apply to a person who brings wine into an 8 art instruction studio or consumes wine that is brought into the art 9 instruction studio in accordance with section 4.6 of this chapter. 10 (e) This section does not apply to a craft manufacturer (as 11 defined in IC 7.1-3-30-1) at an event held on the licensed premises 12 of a host permittee (as defined in IC 7.1-3-30-1) under a temporary 13 craft manufacturer hospitality permit issued under IC 7.1-3-30. 14 (e) (f) It is a Class C misdemeanor for a person, for the person's own 15 use, to knowingly carry on, convey to, or consume on or about the 16 licensed premises of a permittee an alcoholic beverage that was not 17 then and there purchased from that permittee. 18 SECTION 7. IC 7.1-5-8-6, AS AMENDED BY P.L.153-2015, 19 SECTION 14, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE 20 JULY 1, 2022]: Sec. 6. (a) It is a Class C misdemeanor for a person to 21 knowingly carry liquor into a restaurant or place of public 22 entertainment for the purpose of consuming it, displaying it, or selling, 23 furnishing, or giving it away to another person on the premises, or for 24 the purpose of having it served to himself or another person, then and 25 there. It is a Class C misdemeanor to knowingly consume liquor 26 brought into a public establishment in violation of this section. 27 (b) This section does not apply to a person at an outdoor place of 28 public entertainment that: 29 (1) has an area of at least four (4) acres and not more than six (6) 30 acres; 31 (2) is located within one (1) mile of the White River; 32 (3) is owned and operated by a nonprofit corporation exempt from 33 federal income taxation under Section 501(c)(3) of the Internal 34 Revenue Code; and 35 (4) is used primarily in connection with live music concerts. 36 (c) This section does not apply to a person who carries liquor into 37 a restaurant or place of public entertainment where a qualified 38 organization is conducting: 39 (1) an allowable event to which IC 7.1-3-6.1 applies, and the 40 liquor brought into the establishment is: 41 (A) in sealed bottles or cases; and 42 (B) donated to or purchased by the qualified organization to be EH 1298—LS 7163/DI 87 9 1 offered as a prize in the allowable event; or 2 (2) a charity auction to which IC 7.1-3-6.2 applies, and the liquor 3 brought into the establishment is: 4 (A) in sealed bottles or cases; and 5 (B) donated to or purchased by the qualified organization to be 6 offered for sale in the charity auction. 7 (d) This section does not apply to a craft manufacturer (as 8 defined in IC 7.1-3-30-1) at an event held on the licensed premises 9 of a host permittee (as defined in IC 7.1-3-30-1) under a temporary 10 craft manufacturer hospitality permit issued under IC 7.1-3-30. 11 SECTION 8. [EFFECTIVE JULY 1, 2022] (a) The alcohol and 12 tobacco commission shall amend 905 IAC 1-41-2 to conform to 13 IC 7.1-3-20-29, as amended by this act. 14 (b) In amending the rules as required by this SECTION, the 15 commission may adopt emergency rules in the manner provided by 16 IC 4-22-2-37.1. 17 (c) Notwithstanding IC 4-22-2-37.1(g), an emergency rule 18 adopted by the commission under this SECTION expires on the 19 date on which a rule that supersedes the emergency rule is adopted 20 by the commission under IC 4-22-2-24 through IC 4-22-2-36. 21 (d) This SECTION expires July 1, 2024. EH 1298—LS 7163/DI 87 10 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)". EH 1298—LS 7163/DI 87 11 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: EH 1298—LS 7163/DI 87 12 (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 EH 1298—LS 7163/DI 87 13 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 EH 1298—LS 7163/DI 87 14 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 EH 1298—LS 7163/DI 87 15 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 EH 1298—LS 7163/DI 87 16 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 EH 1298—LS 7163/DI 87 17 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 EH 1298—LS 7163/DI 87 18 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 EH 1298—LS 7163/DI 87 19 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); EH 1298—LS 7163/DI 87 20 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 EH 1298—LS 7163/DI 87 21 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 EH 1298—LS 7163/DI 87 22 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 _____ COMMITTEE REPORT Madam President: The Senate Committee on Public Policy, to which was referred House Bill No. 1298, has had the same under consideration and begs leave to report the same back to the Senate with the recommendation that said bill be AMENDED as follows: Page 1, delete lines 1 through 17. Delete pages 2 through 8. Page 9, delete lines 1 through 30. Page 11, delete lines 28 through 42. Delete pages 12 through 14. Page 15, delete lines 1 through 8. Page 16, line 2, delete "and". Page 16, line 3, delete "permit." and insert "permit; and". Page 16, between lines 3 and 4, begin a new line block indented and insert: "(3) pays the license fee for a hospitality permit, as described in IC 7.1-4-4.1-5.1.". Page 16, line 15, delete "must designate" and insert "must:". Page 16, delete lines 16 and 17, begin a new line block indented and insert: "(1) identify each craft manufacturer that will participate in the temporary event; (2) designate an individual who is responsible for the event; and (3) be signed by the individual described in subdivision (2).". Page 17, delete lines 23 through 25, begin a new line block indented and insert: "(8) A minor may be present at a temporary event: (A) only to the extent that a minor is permitted to be present on the licensed premises of the host permittee; and EH 1298—LS 7163/DI 87 23 (B) if the minor is in the company of a parent, legal guardian, or custodian, or family member who is at least twenty-one (21) years of age.". Page 17, delete lines 36 through 42, begin a new paragraph and insert: "SECTION 4. IC 7.1-4-4.1-5.1 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2022]: Sec. 5.1. The license fee for a temporary craft manufacturer hospitality permit issued under IC 7.1-3-30 is an amount determined in STEP THREE of the following formula: STEP ONE: Determine the number of days each craft manufacturer will participate in the temporary event. STEP TWO: Determine the sum of all the numbers determined under STEP ONE. STEP THREE: Multiply the number determined in STEP TWO by fifty dollars ($50).". Page 18, delete lines 1 through 15. Page 20, line 41, delete "commission" and insert "alcohol and tobacco commission". Renumber all SECTIONS consecutively. and when so amended that said bill do pass. (Reference is to HB 1298 as reprinted January 27, 2022.) ALTING, Chairperson Committee Vote: Yeas 9, Nays 0. EH 1298—LS 7163/DI 87