*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