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,
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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.
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between statutes enacted by the 2021 Regular Session of the General Assembly.
HOUSE ENROLLED ACT No. 1298
AN ACT to amend the Indiana Code concerning alcohol and
tobacco.
Be it enacted by the General Assembly of the State of Indiana:
SECTION 1. 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:
(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.
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(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
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 2. 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:
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(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.
SECTION 3. 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
permit.
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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;
(2) meets all requirements for a hospitality permit; and
(3) pays the license fee for a hospitality permit, as described
in IC 7.1-4-4.1-5.1.
(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:
(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).
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;
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(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);
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:
(A) only to the extent that a minor is permitted to be
present on the licensed premises of the host permittee; and
(B) if the minor is in the company of a parent, legal
guardian, or custodian, or family member who is at least
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twenty-one (21) years of age.
(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
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 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).
SECTION 5. 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
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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) 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.
(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
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 6. 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
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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 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.
(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 7. 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
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
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(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 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.
SECTION 8. [EFFECTIVE JULY 1, 2022] (a) The alcohol and
tobacco 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
by the commission under IC 4-22-2-24 through IC 4-22-2-36.
(d) This SECTION expires July 1, 2024.
HEA 1298 — Concur Speaker of the House of Representatives
President of the Senate
President Pro Tempore
Governor of the State of Indiana
Date: Time:
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