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 6973 NOTE PREPARED: Jan 27, 2022
BILL NUMBER: SB 305 BILL AMENDED:
SUBJECT: Alcoholic Beverage Permits in Districts.
FIRST AUTHOR: Sen. Niemeyer BILL STATUS: CR Adopted - 1
st
House
FIRST SPONSOR:
FUNDS AFFECTED:XGENERAL IMPACT: State & Local
XDEDICATED
FEDERAL
Summary of Legislation: This bill 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. It also changes population parameters to reflect the population count determined under the 2020
decennial census.
Effective Date: July 1, 2022.
Explanation of State Expenditures: The Alcohol and Tobacco Commission’s (ATC) workload could
increase if it receives additional permit applications and issues additional permits. The bill’s requirements
are within the agency’s routine administrative functions and should be able to be implemented with no
additional appropriations, assuming near customary agency staffing and resource levels.
Additional Information - Current law allows the ATC to issue up to 10 restaurant permits in a district that
is listed in the National Register of Historic Places and contains a county courthouse, historic opera house,
and historic jail and sheriff’s house that are all listed in the National Register of Historic Places. The bill
additionally allows 10 new permits in a district that is listed in the National Register of Historic Places and
contains a historic town hall and public park listed in the National Register of Historic Places.
Explanation of State Revenues: Permit fee revenue would increase if the ATC issues additional permits.
The initial fee for permits allowed by the bill is $6,000. Annual permit fees for restaurants are $500 if only
beer or wine is served; $750 if both beer and wine but no liquor are served; and $1,000 if beer, wine, and
liquor are served. Revenue is distributed to the General Fund (37%), the city or town in which the licensed
premises are located (33%), and the Enforcement and Administration Fund (30%).
SB 305 1 Explanation of Local Expenditures: The legislative body of the municipality in which the district is located
would be required to recommend potential sites for permit premises to the ATC for the ATC’s consideration
in issuing new permits. In addition, the legislative body may adopt an ordinance requiring permit applicants
to enter into a formal written commitment regarding the character or type of business as a condition of
eligibility for a permit.
Explanation of Local Revenues: Permit fee revenue distributed to the municipality in which the new
permits are located would increase to the extent additional permits are issued in a district described in the
bill.
State Agencies Affected: Alcohol and Tobacco Commission.
Local Agencies Affected: Cities and towns.
Information Sources:
Fiscal Analyst: Lauren Tanselle, 317-232-9586.
SB 305 2