First Regular Session of the 123rd General Assembly (2023)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
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provision adopted), the text of the new provision will appear in this style type. Also, the
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a new provision to the Indiana Code or the Indiana Constitution.
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between statutes enacted by the 2022 Regular Session of the General Assembly.
HOUSE ENROLLED ACT No. 1200
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 7.1-1-3-16.5, AS AMENDED BY P.L.194-2021,
SECTION 13, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2023]: Sec. 16.5. The term "entertainment complex" means a
premises that complies with one (1) or more of the following
requirements:
(1) The premises:
(A) is a site for the performance of musical, theatrical, or other
entertainment; and
(B) includes an area where at least six hundred (600)
individuals may be seated at one (1) time in permanent
seating.
(2) The premises:
(A) is located entirely within a four (4) five (5) mile radius of
the center of a consolidated city;
(B) is used by a nonprofit organization primarily as a museum
of fine arts, as a fine arts theater, or for the professional
performance of musical or theatrical entertainment; and
(C) has audience:
(i) seating in one (1) or more performance spaces for at least
two hundred (200) individuals; or
(ii) capacity of at least two hundred (200) individuals and
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has artist housing on the premises.
SECTION 2. IC 7.1-1-3-32.7, AS ADDED BY P.L.270-2017,
SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2023]: Sec. 32.7. "Professional and educational expenses", for
purposes of IC 7.1-5-5, means one (1) or more of the following:
(1) A primary source of supply or wholesaler may participate in
retailer or dealer association activities. A primary source of
supply or wholesaler may do the following:
(A) Display its products at a convention or trade show.
(B) Rent display booth space if the rental fee is not excessive
and is the same as paid by all exhibitors.
(C) Provide its own hospitality that is independent from
association sponsored activities.
(D) Purchase tickets to functions and pay registration fees if
the payments or fees are not excessive and are the same as
paid by all exhibitors.
(E) Make payments for advertisements in programs or
brochures issued by retailer or dealer associations at a
convention or trade show if the total payments made are not
excessive and are the same as paid by all other advertisers.
(2) A primary source of supply or wholesaler may give or sponsor
educational seminars for employees of retailers or dealers either
at the primary source of supply's or wholesaler's premises or at the
retailer or dealer establishment. Examples of educational
seminars include the following:
(A) Seminars dealing with the use of a retailer's or dealer's
equipment.
(B) Training seminars for employees of retailers or dealers.
(C) Tours of a primary source of supply's or wholesaler's plant
or premises.
(D) Training seminars for employees of retailers or dealers
may include tasting or sampling of alcoholic beverages by the
employees of retailers or dealers. The tasting or sampling of an
alcoholic beverage product is limited to one (1) ounce per
employee of each alcoholic beverage product offered. The
alcoholic beverage to be tasted or sampled may be provided by
the primary source of supply or wholesaler or may be
purchased from the retailer or dealer for no more than the
listed retail price. The tasting or sampling may be conducted
only at a permit premises where the consumption of alcoholic
beverages is permitted. Any tasting or sampling provided by
a primary source of supply or wholesaler must be offered or
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conducted on a nondiscriminatory basis.
(E) Reasonable hospitality, such as food and alcoholic
beverages, may be offered as a part of an educational seminar.
(3) Advertising specialties and consumer advertising specialties,
even if not otherwise permitted by a rule of the commission, if a
wholesaler or primary source of supply does not:
(A) add the name or address of the retailer or dealer to the
advertising specialty or consumer advertising specialty; or
(B) pay or credit the retailer or dealer, directly or indirectly,
for distribution services.
(4) A primary source of supply, manufacturer, or wholesaler
may supply equipment on a temporary and nondiscriminatory
basis to the holder of a retailer permit or a temporary permit
for the purpose of holding, storing, and dispensing product to
consumers for a special event for the duration of the special
event. Ownership of the equipment shall remain with the
primary source of supply, manufacturer, or wholesaler.
SECTION 3. IC 7.1-1-3-47.5, AS AMENDED BY P.L.60-2016,
SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2023]: Sec. 47.5. (a) "Tobacco product", except as provided
in subsection (b), has the meaning set forth in IC 7.1-6-1-3.
(b) "Tobacco product", for purposes of IC 7.1-3-18.5, means a
product that:
(1) contains tobacco or nicotine, including e-liquid (as defined by
IC 7.1-7-2-10) that contains nicotine; and
(2) is intended for human consumption; and
(3) is not approved by the federal Food and Drug
Administration for tobacco cessation.
SECTION 4. IC 7.1-3-2-7, AS AMENDED BY P.L.194-2021,
SECTION 29, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2023]: Sec. 7. The holder of a brewer's permit or an
out-of-state brewer holding either a primary source of supply permit or
an out-of-state brewer's permit may do the following:
(1) Manufacture beer.
(2) Place beer in containers or bottles.
(3) Transport beer.
(4) Sell and deliver beer to a person holding a beer wholesaler's
permit issued under IC 7.1-3-3.
(5) If the brewer manufactures, at all of the brewer's breweries,
located in Indiana, an aggregate of not more than ninety thousand
(90,000) barrels of beer in a calendar year for sale or distribution
within Indiana, the permit holder may do the following:
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(A) Sell and deliver a total of not more than thirty thousand
(30,000) barrels of beer in a calendar year to a person holding
a retailer or a dealer permit under this title. The total number
of barrels of beer that the permit holder may sell and deliver
under this clause in a calendar year may not exceed thirty
thousand (30,000) barrels of beer.
(B) Be the proprietor of a restaurant that is not subject to the
minimum gross food sales or the minimum projected food
sales set forth in 905 IAC 1-41-2.
(C) Hold a beer retailer's permit, a wine retailer's permit, or a
liquor retailer's permit for a restaurant established under clause
(B).
(D) Transfer beer directly from the brewery to the restaurant
by means of:
(i) bulk containers; or
(ii) a continuous flow system.
(E) Install a window between the brewery and an adjacent
restaurant that allows the public and the permittee to view both
premises.
(F) Install a doorway or other opening between the brewery
and an adjacent restaurant that provides the public and the
permittee with access to both premises.
(G) Sell the brewery's beer by the glass for consumption on the
premises. Brewers permitted to sell beer by the glass under
this clause must make food available for consumption on the
premises. A brewer may comply with the requirements of this
clause by doing any of the following:
(i) Allowing a vehicle of transportation that is a food
establishment (as defined in IC 16-18-2-137) to serve food
near the brewer's licensed premises.
(ii) Placing menus in the brewer's premises of restaurants
that will deliver food to the brewery.
(iii) Providing food prepared at the brewery.
(H) Sell and deliver beer to a consumer at the licensed
premises of the brewer or at the residence of the consumer.
Notwithstanding IC 7.1-1-3-20, the licensed premises may
include the brewery parking lot or an area adjacent to the
brewery that may only be used for the purpose of conveying
alcoholic beverages and other nonalcoholic items to a
customer subject to section 10 of this chapter, and may not be
used for point of sale purposes or any other purpose. The
delivery to a consumer may be made only in a quantity at any
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one (1) time of not more than one-half (1/2) barrel, but the
beer may be contained in bottles or other permissible
containers.
(I) Sell the brewery's beer as authorized by this section for
carryout on Sunday in a quantity at any one (1) time of not
more than five hundred seventy-six (576) ounces. A brewer's
beer may be sold under this clause at any address for which the
brewer holds a brewer's permit issued under this chapter if the
address is located within the same city boundaries in which the
beer was manufactured.
(J) With the approval of the commission, participate:
(i) individually; or
(ii) with other permit holders under this chapter, holders of
artisan distiller's permits, holders of farm winery permits, or
any combination of holders described in this item;
in a trade show or an exposition at which products of each
permit holder participant are displayed, promoted, and sold.
All of the permit holders may occupy the same tent, structure,
or building. The commission may not grant to a holder of a
permit under this chapter approval under this clause to
participate in a trade show or exposition for more than
forty-five (45) days in a calendar year.
(K) Store or condition beer in a secure building that is:
(i) separate from the brewery; and
(ii) owned or leased by the permit holder.
(L) Transfer beer from a building described in clause (K) back
to the brewery.
(M) Sell or transfer beer directly to a beer wholesaler from a
building described in clause (K), but may not sell or transfer
beer from the building to any other permittee or a consumer.
The brewer shall maintain an adequate written record of the
beer transferred:
(i) between the brewery and the separate building; and
(ii) from the separate building to the wholesaler.
(N) Sell the brewery's beer to the holder of a supplemental
caterer's permit issued under IC 7.1-3-9.5 for on-premises
consumption only at an event that is held outdoors on property
that is contiguous to the brewery as approved by the
commission.
(O) Receive liquor from the holder of a distiller's permit issued
under IC 7.1-3-7 or the holder of an artisan distiller's permit
under IC 7.1-3-27 that is located in the same county as the
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brewery for the purpose of carbonating and canning the liquor.
Upon the completion of canning of the liquor, the product
must be returned to the original production facility within
forty-eight (48) hours. The activity under this clause is not an
interest under IC 7.1-5-9.
(P) Receive beer from another permit holder under this
subdivision for the purpose of bottling and packaging the
beer. Upon completion of bottling and packaging the beer,
the product must be returned to the original permit holder
who manufactured the beer. The number of barrels of beer
that a permit holder receives, bottles, and packages under
this clause may not exceed the number of barrels of beer
that the permit holder produced from raw materials at the
licensed premises of the permit holder in the same
calendar year. The activity under this clause is not an
interest under IC 7.1-5-9.
(Q) Sell or transfer beer directly to a food manufacturer
located in Indiana that is registered with the federal Food
and Drug Administration for the purpose of adding or
integrating the beer into a product or recipe.
(6) If the brewer's brewery manufactures more than ninety
thousand (90,000) barrels of beer in a calendar year for sale or
distribution within Indiana, the permit holder may own a portion
of the corporate stock of another brewery that:
(A) is located in the same county as the brewer's brewery;
(B) manufactures less than ninety thousand (90,000) barrels of
beer in a calendar year; and
(C) is the proprietor of a restaurant that operates under
subdivision (5).
(7) Provide complimentary samples of beer that are:
(A) produced by the brewer; and
(B) offered to consumers for consumption on the brewer's
premises.
(8) Own a portion of the corporate stock of a sports corporation
that:
(A) manages a minor league baseball stadium located in the
same county as the brewer's brewery; and
(B) holds a beer retailer's permit, a wine retailer's permit, or a
liquor retailer's permit for a restaurant located in that stadium.
(9) For beer described in IC 7.1-1-2-3(a)(4):
(A) may allow transportation to and consumption of the beer
on the licensed premises; and
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(B) may not sell, offer to sell, or allow sale of the beer on the
licensed premises.
SECTION 5. IC 7.1-3-2-11 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2023]: Sec. 11. (a) A finished product of a food manufacturer
that contains beer transferred to the food manufacturer under
section 7(5)(Q) of this chapter may not contain more than one-half
of one percent (0.5%) of alcohol by volume when the product
leaves the food manufacturer's facility.
(b) Beer that is sold or transferred by a brewer to a food
manufacturer under section 7(5)(Q) of this chapter shall be
included within the brewer's ninety thousand (90,000) barrel of
beer limit for the calendar year that is set forth in section 7(5) of
this chapter.
SECTION 6. IC 7.1-3-18-9, AS AMENDED BY P.L.196-2015,
SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2023]: Sec. 9. (a) The commission may issue an employee's
permit to a person who desires to act as:
(1) a clerk in a package liquor store;
(2) an employee who serves wine at a farm winery; or
(3) a bartender, waiter, waitress, or manager in a retail
establishment, excepting dining car and boat employees; or
(4) an employee of a dealer licensed under IC 7.1-3-5-3 or
IC 7.1-3-10-7 to deliver beer or liquor.
(b) A permit authorized by this section is conditioned upon the
compliance by the holder with reasonable rules relating to the permit
which the commission may prescribe from time to time.
(c) A permit issued under this section entitles its holder to work for
any lawful employer. However, a person may work without an
employee's permit for thirty (30) days from the date shown on a receipt
for a cashier's check or money order payable to the commission for that
person's employee's permit application.
(d) A person who, for a package liquor store or retail establishment,
is:
(1) the sole proprietor;
(2) a partner, a general partner, or a limited partner in a
partnership or limited partnership that owns the business
establishment;
(3) a member of a limited liability company that owns the
business establishment; or
(4) a stockholder in a corporation that owns the business
establishment;
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is not required to obtain an employee's permit in order to perform any
of the acts listed in subsection (a).
(e) An applicant may declare on the application form that the
applicant will use the employee's permit only to perform volunteer
service that benefits a nonprofit organization. It is unlawful for an
applicant who makes a declaration under this subsection to use an
employee's permit for any purpose other than to perform volunteer
service that benefits a nonprofit organization.
(f) The commission may not issue an employee's permit to an
applicant while the applicant is serving a sentence for a conviction for
operating while intoxicated, including any term of probation or parole.
(g) The commission may not issue an employee's permit to an
applicant who has two (2) unrelated convictions for operating while
intoxicated if:
(1) the first conviction occurred less than ten (10) years before the
date of the applicant's application for the permit; and
(2) the applicant completed the sentence for the second
conviction, including any term of probation or parole, less than
two (2) years before the date of the applicant's application for the
permit.
(h) If an applicant for an employee's permit has at least three (3)
unrelated convictions for operating while intoxicated in the ten (10)
years immediately preceding the date of the applicant's application for
the permit, the commission may not grant the issuance of the permit.
If, in the ten (10) years immediately preceding the date of the
applicant's application the applicant has:
(1) one (1) conviction for operating while intoxicated, and the
applicant is not subject to subsection (f); or
(2) two (2) unrelated convictions for operating while intoxicated,
and the applicant is not subject to subsection (f) or (g);
the commission may grant or deny the issuance of a permit.
(i) Except as provided under section 9.5 of this chapter, the
commission shall revoke a permit issued to an employee under this
section if:
(1) the employee is convicted of a Class B misdemeanor for
violating IC 7.1-5-10-15(a); or
(2) the employee is convicted of operating while intoxicated after
the issuance of the permit.
The commission may revoke a permit issued to an employee under this
section for any violation of this title or the rules adopted by the
commission.
SECTION 7. IC 7.1-3-19-17, AS AMENDED BY P.L.214-2016,
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SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2023]: Sec. 17. (a) This section applies to a permit issued
under IC 7.1-3-20-16(d), IC 7.1-3-20-16(g), IC 7.1-3-20-16(k)
IC 7.1-3-20-16(l), through IC 7.1-3-20-16(q), or IC 7.1-3-20-16.8 if
a municipal legislative body has adopted an ordinance requiring a
formal written commitment as a condition of eligibility for a permit, as
described in subsection (b).
(b) As a condition of eligibility for a permit, the applicant must
enter into a formal written commitment with the municipal legislative
body regarding the character or type of business that will be conducted
on the permit premises. The municipal legislative body must adopt an
ordinance approving the formal written commitment. A formal written
commitment is binding on the permit holder and on any lessee or
proprietor of the permit premises. When an application for renewal of
a permit is filed, the applicant shall forward a copy of the application
to the municipal legislative body. The municipal legislative body shall
receive notice of any filings, hearings, or other proceedings on the
application for renewal from the applicant.
(c) A formal written commitment may be modified by the municipal
legislative body with the agreement of the permit holder.
(d) Except as provided in subsection (f), the amount of time that a
formal written commitment is valid may not be limited or restricted.
(e) A formal written commitment is terminated at the time a permit
is revoked or not renewed.
(f) If the character or type of business violates the formal written
commitments, the municipality may adopt a recommendation to the
local board and the commission to:
(1) deny the permit holder's application to renew the permit; or
(2) revoke the permit holder's permit.
(g) The commission shall consider evidence at the hearing on the
issue of whether the business violated the formal written commitments.
If the commission determines there is sufficient evidence that the
commitments have been violated by the permittee, the commission
may:
(1) deny the application to renew the permit; or
(2) revoke the permit;
as applicable.
SECTION 8. IC 7.1-3-20-16, AS AMENDED BY P.L.104-2022,
SECTION 57, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2023]: Sec. 16. (a) A permit that is authorized by this section
may be issued without regard to the quota provisions of IC 7.1-3-22.
(b) The commission may issue a three-way permit to sell alcoholic
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beverages for on-premises consumption only to an applicant who is the
proprietor, as owner or lessee, or both, of a restaurant facility in the
passenger terminal complex of a publicly owned airport. A permit
issued under this subsection shall not be transferred to a location off
the airport premises.
(c) Except as provided in sections 16.3 and 16.4 of this chapter, the
commission may issue a three-way, two-way, or one-way permit to sell
alcoholic beverages for on-premises consumption only to an applicant
who is the proprietor, as owner or lessee, or both, of a restaurant within
a redevelopment project consisting of a building or group of buildings
that:
(1) was formerly used as part of a union railway station;
(2) has been listed in or is within a district that has been listed in
the federal National Register of Historic Places maintained
pursuant to the National Historic Preservation Act of 1966, as
amended; and
(3) has been redeveloped or renovated, with the redevelopment or
renovation being funded in part with grants from the federal,
state, or local government.
A permit issued under this subsection shall not be transferred to a
location outside of the redevelopment project.
(d) Subject to section 16.1 of this chapter and except as provided in
section 16.3 of this chapter, the commission may issue a three-way,
two-way, or one-way permit to sell alcoholic beverages for on-premises
consumption only to an applicant who is the proprietor, as owner or
lessee, or both, of a restaurant:
(1) on land; or
(2) in a historic river vessel;
within a municipal riverfront development project funded in part with
state and city money. The ownership of a permit issued under this
subsection and the location for which the permit was issued may not be
transferred. The legislative body of the municipality in which the
municipal riverfront development project is located shall recommend
to the commission sites that are eligible to be permit premises. The
commission shall consider, but is not required to follow, the municipal
legislative body's recommendation in issuing a permit under this
subsection. A permit holder and any lessee or proprietor of the permit
premises are subject to the formal written commitment required under
IC 7.1-3-19-17. Notwithstanding IC 7.1-3-1-3.5 and IC 7.1-3-1.1, if
business operations cease at the permit premises for more than six (6)
months, the permit shall revert to the commission. The permit holder
is not entitled to any refund or other compensation.
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(e) Except as provided in sections 16.3 and 16.4 of this chapter, the
commission may issue a three-way, two-way, or one-way permit to sell
alcoholic beverages for on-premises consumption only to an applicant
who is the proprietor, as owner or lessee, or both, of a restaurant within
a renovation project consisting of:
(1) a building that:
(A) was formerly used as part of a passenger and freight
railway station; and
(B) was built before 1900; or
(2) a complex of buildings that:
(A) is part of an economic development area established under
IC 36-7-14; and
(B) includes, as part of the renovation project, the use and
repurposing of two (2) or more buildings and structures that
are:
(i) at least seventy-five (75) years old; and
(ii) located at a site at which manufacturing previously
occurred over a period of at least seventy-five (75) years.
The permit authorized by this subsection may be issued without regard
to the proximity provisions of IC 7.1-3-21-11.
(f) Except as provided in section 16.3 of this chapter, the
commission may issue a three-way permit for the sale of alcoholic
beverages for on-premises consumption at a cultural center for the
visual and performing arts to the following:
(1) A town having a population of more than twenty-three
thousand (23,000) and less than twenty-three thousand nine
hundred (23,900) located in a county having a population of more
than four hundred thousand (400,000) and less than seven
hundred thousand (700,000).
(2) A city that has an indoor theater as described in section 26 of
this chapter.
(g) Except as provided in section 16.3 of this chapter, the
commission may issue not more than ten (10) fifteen (15) new
three-way, two-way, or one-way permits to sell alcoholic beverages for
on-premises consumption to applicants, each of whom must be the
proprietor, as owner or lessee, or both, of a restaurant located within a
district, or not more than seven hundred (700) one thousand five
hundred (1,500) feet from a district, that meets the following
requirements:
(1) The district has been listed in the National Register of Historic
Places maintained under the National Historic Preservation Act
of 1966, as amended.
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(2) A county courthouse is located within the district.
(3) A historic opera house listed on the National Register of
Historic Places is located within the district.
(4) A historic jail and sheriff's house listed on the National
Register of Historic Places is located within the district.
The legislative body of the municipality in which the district is located
shall recommend to the commission sites that are eligible to be permit
premises. The commission shall consider, but is not required to follow,
the municipal legislative body's recommendation in issuing a permit
under this subsection. An applicant is not eligible for a permit if, less
than two (2) years before the date of the application, the applicant sold
a retailer's permit that was subject to IC 7.1-3-22 and that was for
premises located within the district described in this section or within
seven hundred (700) one thousand five hundred (1,500) feet of the
district. The ownership of a permit issued under this subsection and the
location for which the permit was issued shall not be transferred. A
permit holder and any lessee or proprietor of the permit premises is
subject to the formal written commitment required under
IC 7.1-3-19-17. Notwithstanding IC 7.1-3-1-3.5 and IC 7.1-3-1.1, if
business operations cease at the permit premises for more than six (6)
months, the permit shall revert to the commission. The permit holder
is not entitled to any refund or other compensation. The total number
of active permits issued under this subsection may not exceed ten (10)
fifteen (15) at any time. The cost of an initial permit issued under this
subsection is six thousand dollars ($6,000). twenty-five thousand
dollars ($25,000).
(h) Except as provided in section 16.3 of this chapter, the
commission may issue a three-way permit for the sale of alcoholic
beverages for on-premises consumption to an applicant who will locate
as the proprietor, as owner or lessee, or both, of a restaurant within an
economic development area under IC 36-7-14 in:
(1) a town having a population of more than twenty thousand
(20,000); or
(2) a city having a population of more than forty-nine thousand
four hundred (49,400) and less than fifty thousand (50,000);
located in a county having a population of more than one hundred
twenty thousand (120,000) and less than one hundred thirty thousand
(130,000). The commission may issue not more than five (5) licenses
under this section to premises within a municipality described in
subdivision (1) and not more than five (5) licenses to premises within
a municipality described in subdivision (2). The commission shall
conduct an auction of the permits under IC 7.1-3-22-9, except that the
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auction may be conducted at any time as determined by the
commission. Notwithstanding any other law, the minimum bid for an
initial license under this subsection is thirty-five thousand dollars
($35,000), and the renewal fee for a license under this subsection is one
thousand three hundred fifty dollars ($1,350). Before the district
expires, a permit issued under this subsection may not be transferred.
After the district expires, a permit issued under this subsection may be
renewed, and the ownership of the permit may be transferred, but the
permit may not be transferred from the permit premises.
(i) After June 30, 2006, and except as provided in section 16.3 of
this chapter, the commission may issue not more than five (5) new
three-way, two-way, or one-way permits to sell alcoholic beverages for
on-premises consumption to applicants, each of whom must be the
proprietor, as owner or lessee, or both, of a restaurant located within a
district, or not more than five hundred (500) feet from a district, that
meets all of the following requirements:
(1) The district is within an economic development area, an area
needing redevelopment, or a redevelopment district as established
under IC 36-7-14.
(2) A unit of the National Park Service is partially located within
the district.
(3) An international deep water seaport is located within the
district.
An applicant is not eligible for a permit under this subsection if, less
than two (2) years before the date of the application, the applicant sold
a retailers' permit that was subject to IC 7.1-3-22 and that was for
premises located within the district described in this subsection or
within five hundred (500) feet of the district. A permit issued under this
subsection may not be transferred. If the commission issues five (5)
new permits under this subsection, and a permit issued under this
subsection is later revoked or is not renewed, the commission may
issue another new permit, as long as the total number of active permits
issued under this subsection does not exceed five (5) at any time. The
commission shall conduct an auction of the permits under
IC 7.1-3-22-9, except that the auction may be conducted at any time as
determined by the commission.
(j) Subject to section 16.2 of this chapter and except as provided in
section 16.3 of this chapter, the commission may issue not more than
six (6) new three-way, two-way, or one-way permits to sell alcoholic
beverages for on-premises consumption only to an applicant who is the
proprietor, as owner or lessee, or both, of a restaurant on land within a
municipal lakefront development project. A permit issued under this
HEA 1200 — CC 1 14
subsection may not be transferred. If the commission issues six (6) new
permits under this subsection, and a permit issued under this subsection
is later revoked or is not renewed, the commission may issue another
new permit, as long as the total number of active permits issued under
this subsection does not exceed six (6) at any time. The commission
shall conduct an auction of the permits under IC 7.1-3-22-9, except that
the auction may be conducted at any time as determined by the
commission. Notwithstanding any other law, the minimum bid for an
initial permit under this subsection is ten thousand dollars ($10,000).
(k) Except as provided in section 16.3 of this chapter, the
commission may issue not more than nine (9) new three-way permits
to sell alcoholic beverages for on-premises consumption to applicants,
each of whom must be a proprietor, as owner or lessee, or both, of a
restaurant located:
(1) within a motorsports investment district (as defined in
IC 5-1-17.5-11); or
(2) not more than one thousand five hundred (1,500) feet from a
motorsports investment district.
The ownership of a permit issued under this subsection and the location
for which the permit was issued shall not be transferred. If the
commission issues nine (9) new permits under this subsection, and a
permit issued under this subsection is later revoked or is not renewed,
the commission may issue another new permit, as long as the total
number of active permits issued under this subsection does not exceed
nine (9) at any time. A permit holder and any lessee or proprietor of the
permit premises are subject to the formal written commitment required
under IC 7.1-3-19-17. Notwithstanding IC 7.1-3-1-3.5 and IC 7.1-3-1.1,
if business operations cease at the permit premises for more than six
(6) months, the permit shall revert to the commission. The permit
holder is not entitled to any refund or other compensation.
(l) Except as provided in section 16.3 of this chapter, the
commission may issue not more than two (2) new three-way permits to
sell alcoholic beverages for on-premises consumption for premises
located within a qualified motorsports facility (as defined in
IC 5-1-17.5-14). The ownership of a permit issued under this
subsection and the location for which the permit was issued shall not
be transferred. If the commission issues two (2) new permits under this
subsection, and a permit issued under this subsection is later revoked
or is not renewed, the commission may issue another new permit, as
long as the total number of active permits issued under this subsection
does not exceed two (2) at any time. A permit holder and any lessee or
proprietor of the permit premises are subject to the formal written
HEA 1200 — CC 1 15
commitment required under IC 7.1-3-19-17. Notwithstanding
IC 7.1-3-1-3.5 and IC 7.1-3-1.1, if business operations cease at the
permit premises for more than six (6) months, the permit shall revert
to the commission. The permit holder is not entitled to any refund or
other compensation.
(m) Except as provided in section 16.3 of this chapter, the
commission may issue not more than three (3) new three-way
permits to sell alcoholic beverages for on-premises consumption in
the city of Auburn. The ownership of a permit issued under this
subsection and the location for which the permit was issued shall
not be transferred. If the commission issues three (3) new permits
under this subsection, and a permit issued under this subsection is
later revoked or is not renewed, the commission may issue another
new permit, as long as the total number of active permits issued
under this subsection does not exceed three (3) at any time. A
permit holder and any lessee or proprietor of the permit premises
are subject to the formal written commitment required under
IC 7.1-3-19-17. Notwithstanding IC 7.1-3-1.1, if business operations
cease at the permit premises for more than six (6) months, the
permit shall revert to the commission. The permit holder is not
entitled to any refund or other compensation.
(n) Except as provided in section 16.3 of this chapter, the
commission may issue not more than three (3) new three-way
permits to sell alcoholic beverages for on-premises consumption in
the city of Kendallville. The ownership of a permit issued under
this subsection and the location for which the permit was issued
shall not be transferred. If the commission issues three (3) new
permits under this subsection, and a permit issued under this
subsection is later revoked or is not renewed, the commission may
issue another new permit, as long as the total number of active
permits issued under this subsection does not exceed three (3) at
any time. A permit holder and any lessee or proprietor of the
permit premises are subject to the formal written commitment
required under IC 7.1-3-19-17. Notwithstanding IC 7.1-3-1.1, if
business operations cease at the permit premises for more than six
(6) months, the permit shall revert to the commission. The permit
holder is not entitled to any refund or other compensation.
(o) Except as provided in section 16.3 of this chapter, the
commission may issue not more than two (2) new three-way
permits to sell alcoholic beverages for on-premises consumption in
the city of Warsaw. The ownership of a permit issued under this
subsection and the location for which the permit was issued shall
HEA 1200 — CC 1 16
not be transferred. If the commission issues two (2) new permits
under this subsection, and a permit issued under this subsection is
later revoked or is not renewed, the commission may issue another
new permit, as long as the total number of active permits issued
under this subsection does not exceed two (2) at any time. A permit
holder and any lessee or proprietor of the permit premises are
subject to the formal written commitment required under
IC 7.1-3-19-17. Notwithstanding IC 7.1-3-1.1, if business operations
cease at the permit premises for more than six (6) months, the
permit shall revert to the commission. The permit holder is not
entitled to any refund or other compensation.
(p) Except as provided in section 16.3 of this chapter, the
commission may issue not more than one (1) new three-way permit
to sell alcoholic beverages for on-premises consumption in the town
of Winona Lake. The ownership of a permit issued under this
subsection and the location for which the permit was issued shall
not be transferred. If the commission issues one (1) new permit
under this subsection, and a permit issued under this subsection is
later revoked or is not renewed, the commission may issue another
new permit, as long as the total number of active permits issued
under this subsection does not exceed one (1) at any time. A permit
holder and any lessee or proprietor of the permit premises are
subject to the formal written commitment required under
IC 7.1-3-19-17. Notwithstanding IC 7.1-3-1.1, if business operations
cease at the permit premises for more than six (6) months, the
permit shall revert to the commission. The permit holder is not
entitled to any refund or other compensation.
(q) Except as provided in section 16.3 of this chapter, the
commission may issue not more than one (1) new three-way permit
to sell alcoholic beverages for on-premises consumption in the town
of Syracuse. The ownership of a permit issued under this
subsection and the location for which the permit was issued shall
not be transferred. If the commission issues one (1) new permit
under this subsection, and a permit issued under this subsection is
later revoked or is not renewed, the commission may issue another
new permit, as long as the total number of active permits issued
under this subsection does not exceed one (1) at any time. A permit
holder and any lessee or proprietor of the permit premises are
subject to the formal written commitment required under
IC 7.1-3-19-17. Notwithstanding IC 7.1-3-1.1, if business operations
cease at the permit premises for more than six (6) months, the
permit shall revert to the commission. The permit holder is not
HEA 1200 — CC 1 17
entitled to any refund or other compensation.
SECTION 9. IC 7.1-3-20-16.3, AS ADDED BY P.L.214-2016,
SECTION 18, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2023]: Sec. 16.3. If the holder of a permit holds a:
(1) permit issued under section 16(c) through 16(l) 16(q) of this
chapter or section 16.8 of this chapter to sell beer for on-premises
consumption; and
(2) permit for a brewery described in IC 7.1-3-2-7(5) that is
located on or adjacent to the premises for which the permit holder
holds a permit described in subdivision (1);
the permit holder may sell for carryout, at the premises for which the
permit holder holds a permit described in subdivision (1), beer
manufactured at the brewery.
SECTION 10. IC 7.1-3-20-16.8, AS AMENDED BY P.L.285-2019,
SECTION 36, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2023]: Sec. 16.8. (a) A permit that is authorized by this
section may be issued without regard to the quota provisions of
IC 7.1-3-22.
(b) Except as provided in section 16.3 of this chapter, the
commission may issue not more than four (4) new three-way permits
to sell alcoholic beverages for on-premises consumption to applicants
in each of the following municipalities:
(1) Whitestown.
(2) Lebanon.
(3) Zionsville.
(4) Westfield.
(5) Carmel.
(6) Fishers.
(c) The following apply to permits issued under this section:
subsection (b):
(1) An applicant for a permit under this section subsection (b)
must be a proprietor, as owner or lessee, or both, of a restaurant
located within an economic development area, an area needing
redevelopment, or a redevelopment district as established under
IC 36-7-14 in a municipality's:
(A) downtown redevelopment district; or
(B) downtown economic revitalization area.
(2) The cost of an initial permit is forty thousand dollars
($40,000).
(3) The total number of active permits issued under this section
subsection (b) may not exceed twenty-four (24) permits at any
time. If any of the permits issued under this section subsection
HEA 1200 — CC 1 18
(b) are revoked or not renewed, the commission may issue only
enough new permits to bring the total number of permits to
twenty-four (24) active permits, with not more than four (4) in
each municipality listed in subsection (b)(1) through (b)(6).
(4) The municipality may adopt an ordinance under
IC 7.1-3-19-17 requiring a permit holder to enter into a formal
written commitment as a condition of eligibility for a permit. As
set forth in IC 7.1-3-19-17(b), a formal written commitment is
binding on the permit holder and on any lessee or proprietor of
the permit premises.
(5) Notwithstanding IC 7.1-3-1-3.5 and IC 7.1-3-1.1, if business
operations cease at the permit premises for more than six (6)
months, the permit shall revert to the commission and the permit
holder is not entitled to any refund or other compensation.
(6) Except as provided in subdivision (8), the ownership of a
permit may not be transferred.
(7) A permit may not be transferred from the premises for which
the permit was issued.
(8) If the area in which the permit premises is located is no longer
designated an economic development area, an area needing
redevelopment, or a redevelopment district, a permit issued under
this section may be renewed, and the ownership of the permit may
be transferred, but the permit may not be transferred from the
permit premises.
(d) Except as provided in section 16.3 of this chapter, in addition
to the permits issued to the town of Whitestown under subsection
(c), the commission may issue to the town of Whitestown not more
than:
(1) three (3) new three-way permits; and
(2) three (3) new two-way permits;
under this subsection.
(e) The following apply to permits issued under subsection (d):
(1) An applicant for a permit under subsection (d)(1) or (d)(2)
must be a proprietor, an owner or lessee, or both, of a
restaurant located within an economic development area, an
area needing redevelopment, or a redevelopment district as
established under IC 36-7-14 in a municipality's:
(A) downtown redevelopment district; or
(B) downtown economic revitalization area.
(2) The cost of an initial permit is forty thousand dollars
($40,000).
(3) The total number of active permits issued under
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subsection (d) may not exceed the six (6) permits allocated by
permit type, as set forth in that subsection.
(4) The municipality may adopt an ordinance under
IC 7.1-3-19-17 requiring a permit holder to enter into a
formal written commitment as a condition of eligibility for a
permit. As set forth in IC 7.1-3-19-17(b), a formal written
commitment is binding on the permit holder and on any lessee
or proprietor of the permit premises.
(5) Notwithstanding IC 7.1-3-1.1, if business operations cease
at the permit premises for more than six (6) months, the
permit shall revert to the commission and the permit holder
is not entitled to any refund or other compensation.
(6) Except as provided in subdivision (8), the ownership of a
permit may not be transferred.
(7) A permit may not be transferred from the premises for
which the permit was issued.
(8) If the area in which the permit issued to a premises under
subsection (d)(1) or (d)(2) is located is no longer designated an
economic development area, an area needing redevelopment,
or a redevelopment district, a permit issued under this section
may be renewed, and the ownership of the permit may be
transferred, but the permit may not be transferred from the
permit premises.
SECTION 11. IC 7.1-3-22-4.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2023]: Sec. 4.5. (a) As used in this section,
"eligible grocery store" means a grocery store (as defined in
IC 7.1-1-3-18.5(a)(1)) that meets the following criteria:
(1) Is operated in a consolidated city.
(2) Was established in whole or in part through a food
empowerment pilot project authorized under P.L.165-2021,
SECTION 6 and awarded to a nonprofit corporation for the
benefit of establishing the grocery store.
(3) Operates with less than eighteen thousand (18,000) square
feet of building space.
(4) Provides access to fresh and healthy foods to individuals
in a low income area where access to resources for fresh and
healthy food, particularly fresh fruits and vegetables and
fresh meat, poultry, and fish, is limited.
(b) The commission shall issue a beer dealer's permit and a wine
dealer's permit to an eligible grocery store without regard to the
quota provisions of this chapter.
HEA 1200 — CC 1 20
(c) A permit issued under this section is subject to the following:
(1) A permit issued under this section may be renewed, and
the ownership of the permit may be transferred, but the
permit may not be transferred from the permit premises.
(2) Notwithstanding IC 7.1-3-1.1, if the premises ceases to
qualify as an eligible grocery store for more than six (6)
months, the permit shall revert to the commission and the
permit holder is not entitled to any refund or other
compensation.
SECTION 12. IC 7.1-3-27-3, AS AMENDED BY P.L.159-2014,
SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2023]: Sec. 3. (a) An artisan distiller may produce not more
than ten twenty thousand (10,000) (20,000) gallons of liquor in any
calendar year. Liquor produced by an artisan distiller that is sold
through a wholesaler licensed under IC 7.1-3-8 may not be counted
toward the gallonage limit.
(b) An artisan distiller who knowingly or intentionally violates this
section commits a Class B misdemeanor.
SECTION 13. IC 7.1-5-3-1, AS AMENDED BY P.L.79-2015,
SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2023]: Sec. 1. (a) This section does not apply to the following:
(1) An establishment where alcoholic beverages are sold that is
owned, in whole or part, by an entity that holds a brewer's permit
issued under IC 7.1-3-2-2(b).
(2) An establishment where alcoholic beverages are sold that is
owned, in whole or part, by a statewide trade organization
consisting of members, each of whom holds a brewer's permit
issued under IC 7.1-3-2-2(b).
(3) Beer that is bottled and packaged under IC 7.1-3-2-7(5)(P).
(b) Except as provided in section 6 of this chapter, it is unlawful to
sell beer in this state at retail in a bottle, can, or other container, unless
the bottle, can, or other container was packaged and sealed by the
brewer at the brewer's bottling house contiguous or adjacent to the
brewery in which the beer was produced.
(c) A person who knowingly or intentionally violates subsection (b)
commits a Class B misdemeanor.
SECTION 14. IC 7.1-5-7-11, AS AMENDED BY P.L.105-2022,
SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2023]: Sec. 11. (a) The provisions of sections 9 and 10 of this
chapter shall not apply if the public place involved is one (1) of the
following:
(1) Civic center.
HEA 1200 — CC 1 21
(2) Convention center.
(3) Sports arena.
(4) Bowling center.
(5) Bona fide club.
(6) Drug store.
(7) Grocery store.
(8) Boat.
(9) Dining car.
(10) Pullman car.
(11) Club car.
(12) Passenger airplane.
(13) Horse racetrack facility holding a recognized meeting permit
under IC 4-31-5.
(14) Satellite facility (as defined in IC 4-31-2.1-36).
(15) Catering hall under IC 7.1-3-20-24 that is not open to the
public.
(16) That part of a restaurant which is separate from a room in
which is located a bar over which alcoholic beverages are sold or
dispensed by the drink.
(17) Entertainment complex.
(18) Indoor golf facility.
(19) A recreational facility such as a golf course, bowling center,
or similar facility that has the recreational activity and not the sale
of food and beverages as the principal purpose or function of the
person's business.
(20) A licensed premises owned or operated by a postsecondary
educational institution described in IC 21-17-6-1.
(21) An automobile racetrack.
(22) An indoor theater under IC 7.1-3-20-26.
(23) A senior residence facility campus (as defined in
IC 7.1-3-1-29(c)) at which alcoholic beverages are given or
furnished as provided under IC 7.1-3-1-29.
(24) A hotel other than a part of a hotel that is a room in a
restaurant in which a bar is located over which alcoholic
beverages are sold or dispensed by the drink.
(25) The location of an allowable event to which IC 7.1-3-6.1
applies.
(26) The location of a charity auction to which IC 7.1-3-6.2
applies.
(27) A tour of a brewery as provided in IC 7.1-3-20-16.4, 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.
HEA 1200 — CC 1 22
(28) A farm winery and any additional locations of the farm
winery under IC 7.1-3-12, 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 and the minor is accompanied
by the adult in any area that the adult may be present whether or
not the area:
(A) is separated in any manner from where the wine is
manufactured, sold, or consumed within the farm winery
premises; or
(B) operates under a retailer's permit.
(29) An artisan distillery under IC 7.1-3-27, if:
(A) the person who holds the artisan distiller's permit also
holds a farm winery permit under IC 7.1-3-12, or
IC 7.1-3-20-16.4(a) applies to the person; and
(B) 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.
(30) An art instruction studio under IC 7.1-5-8-4.6.
(31) The licensed premises of a food hall under IC 7.1-3-20-29
and the food and beverage vending space of a food hall vendor
permittee under IC 7.1-3-20-30. However, sections 9 and 10 of
this chapter apply to a bar within the food and beverage vending
space of a food hall vendor permittee under IC 7.1-3-20-30 that
serves alcoholic beverages intended to be consumed while sitting
or standing at the bar.
(b) For the purpose of this subsection, "food" means meals prepared
on the licensed premises. It is lawful for a minor to be on licensed
premises in a room in which is located a bar over which alcoholic
beverages are sold or dispensed by the drink if all the following
conditions are met:
(1) The minor is eighteen (18) years of age or older.
(2) (1) The minor is in the company of a parent, guardian, or
family member who is twenty-one (21) years of age or older.
(3) (2) The purpose for being on the licensed premises is the
consumption of food and not the consumption of alcoholic
beverages.
(3) The minor, accompanied by the parent, guardian, or
family member who is twenty-one (21) years of age or older,
must be seated at a table or booth in the bar area and shall
not be seated at the bar over which alcoholic beverages are
sold or dispensed by the drink.
SECTION 15. IC 7.1-6-1-3 IS AMENDED TO READ AS
HEA 1200 — CC 1 23
FOLLOWS [EFFECTIVE JULY 1, 2023]: Sec. 3. "Tobacco product"
means a product that:
(1) contains tobacco or nicotine; and
(2) is intended for human consumption; and
(3) is not approved by the federal Food and Drug
Administration for tobacco cessation.
SECTION 16. IC 7.1-7-5-1.1, AS ADDED BY P.L.206-2017,
SECTION 29, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2023]: Sec. 1.1. (a) A retailer must have a valid sales
certificate issued by the commission in accordance with
IC 7.1-3-18.5-1 that contains a separate box to check for identifying a
retailer that sells e-liquids.
(b) A retailer may purchase e-liquid only from an Indiana e-liquid
manufacturing permit holder or an Indiana distributor permit holder.
(c) A retailer shall retain all invoices for e-liquid that the retailer
purchases for two (2) years.
(d) A retailer shall not allow the self-service sale for individuals
purchasing an e-liquid.
(e) A retailer may not sell an e-liquid that contains more than
seventy-five (75) milligrams per milliliter of nicotine.
(f) A manufacturer must have an e-liquid manufacturing permit
issued under IC 7.1-7-4.
(g) A distributor that does not have a valid e-liquid manufacturing
permit issued under IC 7.1-7-4 must have a valid distributor's license
issued under IC 6-7-2-8.
(h) A distributor shall purchase and distribute e-liquid from an:
(1) Indiana e-liquid manufacturer that has a valid e-liquid
manufacturing permit under IC 7.1-7-4; or
(2) Indiana e-liquid distributor that has a valid:
(A) e-liquid manufacturing permit issued under IC 7.1-7-4;
or
(B) distributor's license under IC 6-7-2-8.
(h) (i) A distributor shall retain all invoices to a retailer or from a
manufacturer for at least two (2) years.
(i) (j) A manufacturer, distributor, or retailer may not market
e-liquid as a modified risk tobacco product, as defined by
IC 7.1-7-2-17.5, that has not been designated as a modified risk
tobacco product by the federal Food and Drug Administration.
(j) (k) Except as provided in subsection (l), (m), a manufacturer,
including a manufacturer of a closed system vapor product, shall
annually submit a report to the commission setting forth:
(1) each new product that the manufacturer is producing and is
HEA 1200 — CC 1 24
sold in Indiana with a list of the contents and ingredients by
volume; and
(2) whether the manufacturer has stopped producing products
previously produced and sold in Indiana.
A report under this subsection is confidential, and the commission may
not disclose it to another person.
(k) (l) A manufacturer shall annually submit a report to the
commission setting forth:
(1) the milligrams per milliliter of nicotine in each product the
manufacturer produces; and
(2) the milliliters of each product sold that current year.
A report under this subsection is confidential, and the ATC may not
disclose it to another person.
(l) (m) A manufacturer is not required to submit a report described
in subsection (j) (k) if the manufacturer submits to the commission a
certification, by October 1 of each year, that each of the manufacturer's
vapor products sold in Indiana has been filed with the federal Food and
Drug Administration.
HEA 1200 — CC 1 Speaker of the House of Representatives
President of the Senate
President Pro Tempore
Governor of the State of Indiana
Date: Time:
HEA 1200 — CC 1