LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
200 W. Washington St., Suite 301
Indianapolis, IN 46204
(317) 233-0696
iga.in.gov
FISCAL IMPACT STATEMENT
LS 7163 NOTE PREPARED: Jan 21, 2022
BILL NUMBER: HB 1298 BILL AMENDED: Jan 18, 2022
SUBJECT: Alcoholic Beverages.
FIRST AUTHOR: Rep. Smaltz BILL STATUS: CR Adopted - 1
st
House
FIRST SPONSOR:
FUNDS AFFECTED:XGENERAL IMPACT: State & Local
XDEDICATED
FEDERAL
Summary of Legislation: (Amended) This bill allows a county, city, or town to adopt an ordinance to allow
the following at a farmers' market, subject to the consent of the operator of the farmers' market:
(1) A small brewery, farm winery, or artisan distillery (craft manufacturer) to serve complimentary samples
of the alcoholic beverages (product) that they manufacture.
(2) A small brewery or artisan distillery to sell their product in original containers.
It provides that sale and service at a farmers' market by a craft manufacturer does not count toward the
maximum days for participating in a trade show or exhibition.
The bill 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.
The bill allows a craft manufacturer who obtains approval from the holder of a craft manufacturer hospitality
permit to do the following on the licensed premises of a permittee:
(1) Display alcoholic beverages manufactured by the craft manufacturer.
(2) Allow customers to sample alcoholic beverages manufactured by the craft manufacturer.
(3) Sell alcoholic beverages in the manner permitted for a trade show or exposition.
It provides restrictions on ordinances concerning alcoholic beverages at farmers' markets.
Effective Date: July 1, 2022.
Explanation of State Expenditures: (Revised) The bill would increase the workload of the Alcohol and
HB 1298 1 Tobacco Commission (ATC). The ATC would be responsible for enforcing and implementing the bill’s
provisions, including enforcing alcoholic beverage laws at farmer’s markets where alcoholic beverages are
sold. The ATC would also be required to amend rules, as well as process applications and issue craft
manufacturer hospitality permits. [The ATC’s enforcement and administrative costs are funded primarily by
appropriations from a dedicated agency fund.]
Explanation of State Revenues: (Revised) Alcoholic Beverage Sales: To the extent that alcoholic beverage
sales increase as a result of increased availability at farmers’ markets and licensed premises of holders of
craft manufacturer hospitality permits, Alcoholic Beverage Tax and Sales Tax revenue could potentially
increase. However, any increase would be minimal, as an increase in sales at farmers’ markets would likely
be offset by reduced sales at other locations. [Alcoholic Beverage Tax revenue is distributed in varying
amounts to the following funds: General Fund, State Construction Fund, Enforcement and Administration
Fund, Pension Relief Fund, and Addiction Services Fund. Sales Tax revenue is primarily deposited in the
General Fund.]
(Revised) Penalty Provisions: Under current law, it is a Class B misdemeanor for the owner or operator of
a restaurant or place of entertainment to permit another person to come into the establishment with an
alcoholic beverage for sale, gift, or consumption. It is also a Class C misdemeanor to (1) carry on, convey
to, or consume on a licensed premises an alcoholic beverage that was not then and there purchased from the
permittee or (2) carry liquor into a restaurant or place of public entertainment. The bill exempts the holder
of a craft manufacturer hospitality permit from these provisions. If fewer court cases occur and fines are
collected, revenue to both the Common School Fund (from fines) and the state General Fund (from court
fees) would decrease. The maximum fine for a Class B misdemeanor is $1,000, and the maximum fine for
a Class C misdemeanor is $500. However, any decrease in revenue would likely be small.
Explanation of Local Expenditures: Local Ordinances: If a county, city, or town holds additional meetings
to adopt an ordinance described in the bill, workload and costs could increase. However, the bill’s
requirements should be able to be implemented within existing resources.
(Revised) Penalty Provisions: A Class B misdemeanor is punishable by up to 180 days in jail, and a Class
C misdemeanor is punishable by up to 60 days in jail.
Explanation of Local Revenues: (Revised) Penalty Provisions: If fewer court actions occur and guilty
verdicts are entered, local governments would receive less revenue from court fees. However, any change
in revenue would likely be small.
State Agencies Affected: Alcohol and Tobacco Commission.
Local Agencies Affected: Counties, cities, and towns; trial courts, local law enforcement agencies.
Information Sources:
Fiscal Analyst: Lauren Tanselle, 317-232-9586.
HB 1298 2