*SB0305.1*
January 28, 2022
SENATE BILL No. 305
_____
DIGEST OF SB 305 (Updated January 26, 2022 4:32 pm - DI 133)
Citations Affected: IC 7.1-3.
Synopsis: Alcoholic beverage permits in districts. Allows a district
that meets certain requirements to be issued not more than 10 new
alcoholic beverage permits for restaurants located within the district or
within 700 feet of the district. Changes population parameters to reflect
the population count determined under the 2020 decennial census.
Effective: July 1, 2022.
Niemeyer
January 10, 2022, read first time and referred to Committee on Public Policy.
January 27, 2022, reported favorably — Do Pass.
SB 305—LS 6973/DI 87 January 28, 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.
SENATE BILL No. 305
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 7.1-3-20-16, AS AMENDED BY P.L.220-2021,
2 SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3 JULY 1, 2022]: Sec. 16. (a) A permit that is authorized by this section
4 may be issued without regard to the quota provisions of IC 7.1-3-22.
5 (b) The commission may issue a three-way permit to sell alcoholic
6 beverages for on-premises consumption only to an applicant who is the
7 proprietor, as owner or lessee, or both, of a restaurant facility in the
8 passenger terminal complex of a publicly owned airport. A permit
9 issued under this subsection shall not be transferred to a location off
10 the airport premises.
11 (c) Except as provided in sections 16.3 and 16.4 of this chapter, the
12 commission may issue a three-way, two-way, or one-way permit to sell
13 alcoholic beverages for on-premises consumption only to an applicant
14 who is the proprietor, as owner or lessee, or both, of a restaurant within
15 a redevelopment project consisting of a building or group of buildings
16 that:
17 (1) was formerly used as part of a union railway station;
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1 (2) has been listed in or is within a district that has been listed in
2 the federal National Register of Historic Places maintained
3 pursuant to the National Historic Preservation Act of 1966, as
4 amended; and
5 (3) has been redeveloped or renovated, with the redevelopment or
6 renovation being funded in part with grants from the federal,
7 state, or local government.
8 A permit issued under this subsection shall not be transferred to a
9 location outside of the redevelopment project.
10 (d) Subject to section 16.1 of this chapter and except as provided in
11 section 16.3 of this chapter, the commission may issue a three-way,
12 two-way, or one-way permit to sell alcoholic beverages for on-premises
13 consumption only to an applicant who is the proprietor, as owner or
14 lessee, or both, of a restaurant:
15 (1) on land; or
16 (2) in a historic river vessel;
17 within a municipal riverfront development project funded in part with
18 state and city money. The ownership of a permit issued under this
19 subsection and the location for which the permit was issued may not be
20 transferred. The legislative body of the municipality in which the
21 municipal riverfront development project is located shall recommend
22 to the commission sites that are eligible to be permit premises. The
23 commission shall consider, but is not required to follow, the municipal
24 legislative body's recommendation in issuing a permit under this
25 subsection. A permit holder and any lessee or proprietor of the permit
26 premises are subject to the formal written commitment required under
27 IC 7.1-3-19-17. Notwithstanding IC 7.1-3-1-3.5 and IC 7.1-3-1.1, if
28 business operations cease at the permit premises for more than six (6)
29 months, the permit shall revert to the commission. The permit holder
30 is not entitled to any refund or other compensation.
31 (e) Except as provided in sections 16.3 and 16.4 of this chapter, the
32 commission may issue a three-way, two-way, or one-way permit to sell
33 alcoholic beverages for on-premises consumption only to an applicant
34 who is the proprietor, as owner or lessee, or both, of a restaurant within
35 a renovation project consisting of:
36 (1) a building that:
37 (A) was formerly used as part of a passenger and freight
38 railway station; and
39 (B) was built before 1900; or
40 (2) a complex of buildings that:
41 (A) is part of an economic development area established under
42 IC 36-7-14; and
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1 (B) includes, as part of the renovation project, the use and
2 repurposing of two (2) or more buildings and structures that
3 are:
4 (i) at least seventy-five (75) years old; and
5 (ii) located at a site at which manufacturing previously
6 occurred over a period of at least seventy-five (75) years.
7 The permit authorized by this subsection may be issued without regard
8 to the proximity provisions of IC 7.1-3-21-11.
9 (f) Except as provided in section 16.3 of this chapter, the
10 commission may issue a three-way permit for the sale of alcoholic
11 beverages for on-premises consumption at a cultural center for the
12 visual and performing arts to the following:
13 (1) A town that:
14 (A) is located in a county having a population of more than
15 four hundred thousand (400,000) but less than seven hundred
16 thousand (700,000); and
17 (B) has a population of more than twenty thousand (20,000)
18 but less than twenty-three thousand seven hundred (23,700).
19 having a population of more than twenty-three thousand
20 (23,000) and less than twenty-three thousand nine hundred
21 (23,900) located in a county having a population of more
22 than four hundred thousand (400,000) and less than seven
23 hundred thousand (700,000).
24 (2) A city that has an indoor theater as described in section 26 of
25 this chapter.
26 (g) Except as provided in section 16.3 of this chapter, the
27 commission may issue not more than ten (10) new three-way, two-way,
28 or one-way permits to sell alcoholic beverages for on-premises
29 consumption to applicants, each of whom must be the proprietor, as
30 owner or lessee, or both, of a restaurant located within a district, or not
31 more than seven hundred (700) feet from a district, that meets the
32 following requirements in subdivision (1) or (2) as follows:
33 (1) The district meets the following requirements:
34 (A) The district has been listed in the National Register of
35 Historic Places maintained under the National Historic
36 Preservation Act of 1966, as amended.
37 (B) The following are located within the district:
38 (2) (i) A county courthouse. is located within the district.
39 (3) (ii) A historic opera house listed on the National Register
40 of Historic Places. is located within the district.
41 (4) (iii) A historic jail and sheriff's house listed on the
42 National Register of Historic Places. is located within the
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1 district.
2 (2) The district meets the following requirements:
3 (A) The district has been listed in the National Register of
4 Historic Places maintained under the National Historic
5 Preservation Act of 1966, as amended.
6 (B) A historic town hall and public park listed on the
7 National Register of Historic Places are located within the
8 district.
9 The legislative body of the municipality in which the district is located
10 shall recommend to the commission sites that are eligible to be permit
11 premises. The commission shall consider, but is not required to follow,
12 the municipal legislative body's recommendation in issuing a permit
13 under this subsection. An applicant is not eligible for a permit if, less
14 than two (2) years before the date of the application, the applicant sold
15 a retailer's permit that was subject to IC 7.1-3-22 and that was for
16 premises located within the district described in this section or within
17 seven hundred (700) feet of the district. The ownership of a permit
18 issued under this subsection and the location for which the permit was
19 issued shall not be transferred. A permit holder and any lessee or
20 proprietor of the permit premises is subject to the formal written
21 commitment required under IC 7.1-3-19-17. Notwithstanding
22 IC 7.1-3-1-3.5 and IC 7.1-3-1.1, if business operations cease at the
23 permit premises for more than six (6) months, the permit shall revert
24 to the commission. The permit holder is not entitled to any refund or
25 other compensation. The total number of active permits issued under
26 this subsection may not exceed ten (10) at any time. The cost of an
27 initial permit issued under this subsection is six thousand dollars
28 ($6,000).
29 (h) Except as provided in section 16.3 of this chapter, the
30 commission may issue a three-way permit for the sale of alcoholic
31 beverages for on-premises consumption to an applicant who will locate
32 as the proprietor, as owner or lessee, or both, of a restaurant within an
33 economic development area under IC 36-7-14 in:
34 (1) a town with a population of more than twenty thousand
35 (20,000); or
36 (2) a city with having a population of more than forty-four
37 thousand five hundred (44,500) but less than forty-five thousand
38 (45,000); forty-nine thousand four hundred (49,400) and less
39 than fifty thousand (50,000);
40 located in a county having a population of more than one hundred ten
41 thousand (110,000) but less than one hundred eleven thousand
42 (111,000). one hundred twenty thousand (120,000) and less than
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1 one hundred thirty thousand (130,000). The commission may issue
2 not more than five (5) licenses under this section to premises within a
3 municipality described in subdivision (1) and not more than five (5)
4 licenses to premises within a municipality described in subdivision (2).
5 The commission shall conduct an auction of the permits under
6 IC 7.1-3-22-9, except that the auction may be conducted at any time as
7 determined by the commission. Notwithstanding any other law, the
8 minimum bid for an initial license under this subsection is thirty-five
9 thousand dollars ($35,000), and the renewal fee for a license under this
10 subsection is one thousand three hundred fifty dollars ($1,350). Before
11 the district expires, a permit issued under this subsection may not be
12 transferred. After the district expires, a permit issued under this
13 subsection may be renewed, and the ownership of the permit may be
14 transferred, but the permit may not be transferred from the permit
15 premises.
16 (i) After June 30, 2006, and except as provided in section 16.3 of
17 this chapter, the commission may issue not more than five (5) new
18 three-way, two-way, or one-way permits to sell alcoholic beverages for
19 on-premises consumption to applicants, each of whom must be the
20 proprietor, as owner or lessee, or both, of a restaurant located within a
21 district, or not more than five hundred (500) feet from a district, that
22 meets all of the following requirements:
23 (1) The district is within an economic development area, an area
24 needing redevelopment, or a redevelopment district as established
25 under IC 36-7-14.
26 (2) A unit of the National Park Service is partially located within
27 the district.
28 (3) An international deep water seaport is located within the
29 district.
30 An applicant is not eligible for a permit under this subsection if, less
31 than two (2) years before the date of the application, the applicant sold
32 a retailers' permit that was subject to IC 7.1-3-22 and that was for
33 premises located within the district described in this subsection or
34 within five hundred (500) feet of the district. A permit issued under this
35 subsection may not be transferred. If the commission issues five (5)
36 new permits under this subsection, and a permit issued under this
37 subsection is later revoked or is not renewed, the commission may
38 issue another new permit, as long as the total number of active permits
39 issued under this subsection does not exceed five (5) at any time. The
40 commission shall conduct an auction of the permits under
41 IC 7.1-3-22-9, except that the auction may be conducted at any time as
42 determined by the commission.
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1 (j) Subject to section 16.2 of this chapter and except as provided in
2 section 16.3 of this chapter, the commission may issue not more than
3 six (6) new three-way, two-way, or one-way permits to sell alcoholic
4 beverages for on-premises consumption only to an applicant who is the
5 proprietor, as owner or lessee, or both, of a restaurant on land within a
6 municipal lakefront development project. A permit issued under this
7 subsection may not be transferred. If the commission issues six (6) new
8 permits under this subsection, and a permit issued under this subsection
9 is later revoked or is not renewed, the commission may issue another
10 new permit, as long as the total number of active permits issued under
11 this subsection does not exceed six (6) at any time. The commission
12 shall conduct an auction of the permits under IC 7.1-3-22-9, except that
13 the auction may be conducted at any time as determined by the
14 commission. Notwithstanding any other law, the minimum bid for an
15 initial permit under this subsection is ten thousand dollars ($10,000).
16 (k) Except as provided in section 16.3 of this chapter, the
17 commission may issue not more than nine (9) new three-way permits
18 to sell alcoholic beverages for on-premises consumption to applicants,
19 each of whom must be a proprietor, as owner or lessee, or both, of a
20 restaurant located:
21 (1) within a motorsports investment district (as defined in
22 IC 5-1-17.5-11); or
23 (2) not more than one thousand five hundred (1,500) feet from a
24 motorsports investment district.
25 The ownership of a permit issued under this subsection and the location
26 for which the permit was issued shall not be transferred. If the
27 commission issues nine (9) new permits under this subsection, and a
28 permit issued under this subsection is later revoked or is not renewed,
29 the commission may issue another new permit, as long as the total
30 number of active permits issued under this subsection does not exceed
31 nine (9) at any time. A permit holder and any lessee or proprietor of the
32 permit premises are subject to the formal written commitment required
33 under IC 7.1-3-19-17. Notwithstanding IC 7.1-3-1-3.5 and IC 7.1-3-1.1,
34 if business operations cease at the permit premises for more than six
35 (6) months, the permit shall revert to the commission. The permit
36 holder is not entitled to any refund or other compensation.
37 (l) Except as provided in section 16.3 of this chapter, the
38 commission may issue not more than two (2) new three-way permits to
39 sell alcoholic beverages for on-premises consumption for premises
40 located within a qualified motorsports facility (as defined in
41 IC 5-1-17.5-14). The ownership of a permit issued under this
42 subsection and the location for which the permit was issued shall not
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1 be transferred. If the commission issues two (2) new permits under this
2 subsection, and a permit issued under this subsection is later revoked
3 or is not renewed, the commission may issue another new permit, as
4 long as the total number of active permits issued under this subsection
5 does not exceed two (2) at any time. A permit holder and any lessee or
6 proprietor of the permit premises are subject to the formal written
7 commitment required under IC 7.1-3-19-17. Notwithstanding
8 IC 7.1-3-1-3.5 and IC 7.1-3-1.1, if business operations cease at the
9 permit premises for more than six (6) months, the permit shall revert
10 to the commission. The permit holder is not entitled to any refund or
11 other compensation.
SB 305—LS 6973/DI 87 8
COMMITTEE REPORT
Madam President: The Senate Committee on Public Policy, to which
was referred Senate Bill No. 305, has had the same under consideration
and begs leave to report the same back to the Senate with the
recommendation that said bill DO PASS.
(Reference is to SB 305 as introduced.)
ALTING, Chairperson
Committee Vote: Yeas 9, Nays 0
SB 305—LS 6973/DI 87