Indiana 2023 Regular Session

Indiana House Bill HB1217 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	EH1217.1
2		-	March 31, 2023
3		-	ENGROSSED
	1	+	HB1217.1
	2	+	February 14, 2023
4	3		HOUSE BILL No. 1217
5	4		_____
6		-	DIGEST OF HB 1217 (Updated ~~March 29~~, 2023 3:57 pm - DI ~~137~~)
	5	+	DIGEST OF HB 1217 (Updated February 14, 2023 1:34 pm - DI 107)
7	6		Citations Affected: IC 7.1-1; IC 7.1-3; IC 7.1-5.
8	7		Synopsis: Various alcohol matters. Modifies the definition of
9		-	"entertainment complex" for purposes of alcohol law. Provides that a
10		-	primary source of supply, manufacturer, or wholesaler may supply
11		-	equipment on a temporary and nondiscriminatory basis to the holder of
12		-	a retailer permit or a temporary permit for the purpose of holding,
13		-	storing, and dispensing product to consumers for a special event for the
14		-	duration of the special event. Provides that certain brewers may sell or
15		-	transfer beer to certain food manufacturers for the purpose of adding
16		-	or integrating the beer into a product or recipe. Provides that a product
17		-	that contains transferred beer may not contain more than 0.5% of
18		-	(Continued next page)
	8	+	"entertainment complex" for purposes of alcohol law. Allows a primary
	9	+	source of supply or wholesaler to allow a permittee to use its equipment
	10	+	to hold and dispense alcoholic beverages to consumers during a special
	11	+	event. Provides that a beauty culture salon employee may dispense beer
	12	+	and wine under certain circumstances. Increases, within a certain
	13	+	historic district, the number of alcoholic beverage restaurant permits
	14	+	from 10 to 15, and changes certain other requirements. Allows a small
	15	+	brewery to receive, bottle, and package beer from another small
	16	+	brewery if certain requirements are met. Increases the number of
	17	+	gallons of liquor that an artisan distiller may produce in a calendar year
	18	+	from 10,000 to 20,000. Amends the limitations on the amount of liquor
	19	+	from another manufacturer that an artisan distiller may obtain and use.
	20	+	Provides that certain brewers may sell or transfer beer to certain food
	21	+	manufacturers for the purpose of adding or integrating the beer into a
	22	+	product or recipe. Provides that a product that contains the transferred
	23	+	beer may not contain more than 0.5% of alcohol by volume when the
	24	+	product leaves the food manufacturer's facility. Provides that the holder
	25	+	of a farm winery permit is entitled to serve complimentary samples of
	26	+	the winery's wine at a farmer's market that is operated on a nonprofit
	27	+	basis.
19	28		Effective: July 1, 2023.
20		-	Manning, Bartels, Johnson B, Clere
21		-	(SENATE SPONSORS — ALTING, BUSCH)
	29	+	Manning, Bartels, Johnson B
22	30		January 10, 2023, read first time and referred to Committee on Public Policy.
23	31		February 14, 2023, amended, reported — Do Pass.
24		-	February 16, 2023, read second time, ordered engrossed.
25		-	February 17, 2023, engrossed.
26		-	February 20, 2023, read third time, passed. Yeas 94, nays 3.
27		-	SENATE ACTION
28		-	March 1, 2023, read first time and referred to Committee on Public Policy.
29		-	March 30, 2023, amended, reported favorably — Do Pass.
30		-	EH 1217—LS 6814/DI 87 Digest Continued
31		-	alcohol by volume when the product leaves the food manufacturer's
32		-	facility. Allows a small brewery to receive, bottle, and package beer
33		-	from another small brewery if certain requirements are met. Makes
34		-	technical corrections regarding a permit holder who manufactures not
35		-	more than 90,000 barrels of beer in a calendar year for sale or
36		-	distribution in the state. Increases, within a certain historic district, the
37		-	number of alcoholic beverage restaurant permits from 10 to 15, and
38		-	changes certain other requirements. Permits the issuance of three new
39		-	three-way permits, three new two-way permits, and one new liquor
40		-	dealer's permit to the town of Whitestown. Requires the alcohol and
41		-	tobacco commission to issue a beer dealer's permit and a wine dealer's
42		-	permit to an eligible grocery store. Increases the number of gallons of
43		-	liquor that an artisan distiller may produce in a calendar year from
44		-	10,000 to 20,000. Amends the conditions in which a minor can lawfully
45		-	be in a room on a licensed premises in which is located a bar over
46		-	which alcoholic beverages are sold or dispensed by the drink.
47		-	EH 1217—LS 6814/DI 87EH 1217—LS 6814/DI 87 March 31, 2023
	32	+	HB 1217—LS 6814/DI 87 February 14, 2023
48	33		First Regular Session of the 123rd General Assembly (2023)
49	34		PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
50	35		Constitution) is being amended, the text of the existing provision will appear in this style type,
51	36		additions will appear in this style type, and deletions will appear in this style type.
52	37		Additions: Whenever a new statutory provision is being enacted (or a new constitutional
53	38		provision adopted), the text of the new provision will appear in this style type. Also, the
54	39		word NEW will appear in that style type in the introductory clause of each SECTION that adds
55	40		a new provision to the Indiana Code or the Indiana Constitution.
56	41		Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
57	42		between statutes enacted by the 2022 Regular Session of the General Assembly.
58		-	ENGROSSED
59	43		HOUSE BILL No. 1217
60	44		A BILL FOR AN ACT to amend the Indiana Code concerning
61	45		alcohol and tobacco.
62	46		Be it enacted by the General Assembly of the State of Indiana:
63	47		1 SECTION 1. IC 7.1-1-3-16.5, AS AMENDED BY P.L.194-2021,
64	48		2 SECTION 13, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
65	49		3 JULY 1, 2023]: Sec. 16.5. The term "entertainment complex" means a
66	50		4 premises that complies with one (1) or more of the following
67	51		5 requirements:
68	52		6 (1) The premises:
69	53		7 (A) is a site for the performance of musical, theatrical, or other
70	54		8 entertainment; and
71	55		9 (B) includes an area where at least six hundred (600)
72	56		10 individuals may be seated at one (1) time in permanent
73	57		11 seating.
74	58		12 (2) The premises:
75	59		13 (A) is located entirely within a four (4) five (5) mile radius of
76	60		14 the center of a consolidated city;
77	61		15 (B) is used by a nonprofit organization primarily as a museum
78	62		16 of fine arts, as a fine arts theater, or for the professional
79	63		17 performance of musical or theatrical entertainment; and
80		-	EH 1217—LS 6814/DI 87 2
	64	+	HB 1217—LS 6814/DI 87 2
81	65		1 (C) has audience seating in one (1) or more performance
82	66		2 spaces for at least two hundred (200) individuals.
83	67		3 SECTION 2. IC 7.1-1-3-32.7, AS ADDED BY P.L.270-2017,
84	68		4 SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
85	69		5 JULY 1, 2023]: Sec. 32.7. "Professional and educational expenses", for
86	70		6 purposes of IC 7.1-5-5, means one (1) or more of the following:
87	71		7 (1) A primary source of supply or wholesaler may participate in
88	72		8 retailer or dealer association activities. A primary source of
89	73		9 supply or wholesaler may do the following:
90	74		10 (A) Display its products at a convention or trade show.
91	75		11 (B) Rent display booth space if the rental fee is not excessive
92	76		12 and is the same as paid by all exhibitors.
93	77		13 (C) Provide its own hospitality that is independent from
94	78		14 association sponsored activities.
95	79		15 (D) Purchase tickets to functions and pay registration fees if
96	80		16 the payments or fees are not excessive and are the same as
97	81		17 paid by all exhibitors.
98	82		18 (E) Make payments for advertisements in programs or
99	83		19 brochures issued by retailer or dealer associations at a
100	84		20 convention or trade show if the total payments made are not
101	85		21 excessive and are the same as paid by all other advertisers.
102	86		22 (2) A primary source of supply or wholesaler may give or sponsor
103	87		23 educational seminars for employees of retailers or dealers either
104	88		24 at the primary source of supply's or wholesaler's premises or at the
105	89		25 retailer or dealer establishment. Examples of educational
106	90		26 seminars include the following:
107	91		27 (A) Seminars dealing with the use of a retailer's or dealer's
108	92		28 equipment.
109	93		29 (B) Training seminars for employees of retailers or dealers.
110	94		30 (C) Tours of a primary source of supply's or wholesaler's plant
111	95		31 or premises.
112	96		32 (D) Training seminars for employees of retailers or dealers
113	97		33 may include tasting or sampling of alcoholic beverages by the
114	98		34 employees of retailers or dealers. The tasting or sampling of an
115	99		35 alcoholic beverage product is limited to one (1) ounce per
116	100		36 employee of each alcoholic beverage product offered. The
117	101		37 alcoholic beverage to be tasted or sampled may be provided by
118	102		38 the primary source of supply or wholesaler or may be
119	103		39 purchased from the retailer or dealer for no more than the
120	104		40 listed retail price. The tasting or sampling may be conducted
121	105		41 only at a permit premises where the consumption of alcoholic
122	106		42 beverages is permitted. Any tasting or sampling provided by
123		-	EH 1217—LS 6814/DI 87 3
	107	+	HB 1217—LS 6814/DI 87 3
124	108		1 a primary source of supply or wholesaler must be offered or
125	109		2 conducted on a nondiscriminatory basis.
126	110		3 (E) Reasonable hospitality, such as food and alcoholic
127	111		4 beverages, may be offered as a part of an educational seminar.
128	112		5 (3) Advertising specialties and consumer advertising specialties,
129	113		6 even if not otherwise permitted by a rule of the commission, if a
130	114		7 wholesaler or primary source of supply does not:
131	115		8 (A) add the name or address of the retailer or dealer to the
132	116		9 advertising specialty or consumer advertising specialty; or
133	117		10 (B) pay or credit the retailer or dealer, directly or indirectly,
134	118		11 for distribution services.
135		-	12 (4) A primary source of supply, manufacturer, or wholesaler
136		-	13 may supply equipment on a temporary and nondiscriminatory
137		-	14 basis to the holder of a retailer permit or a temporary permit
138		-	15 for the purpose of holding, storing, and dispensing product to
139		-	16 consumers for a special event for the duration of the special
140		-	17 event. Ownership of the equipment shall remain with the
141		-	18 primary source of supply, manufacturer, or wholesaler.
142		-	19 SECTION 3. IC 7.1-3-2-7, AS AMENDED BY P.L.194-2021,
143		-	20 SECTION 29, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
144		-	21 JULY 1, 2023]: Sec. 7. The holder of a brewer's permit or an
145		-	22 out-of-state brewer holding either a primary source of supply permit or
146		-	23 an out-of-state brewer's permit may do the following:
147		-	24 (1) Manufacture beer.
148		-	25 (2) Place beer in containers or bottles.
149		-	26 (3) Transport beer.
150		-	27 (4) Sell and deliver beer to a person holding a beer wholesaler's
151		-	28 permit issued under IC 7.1-3-3.
152		-	29 (5) If the brewer manufactures, at all of the brewer's breweries,
153		-	30 located in Indiana, an aggregate of not more than ninety thousand
154		-	31 (90,000) barrels of beer in a calendar year for sale or distribution
155		-	32 within Indiana, the permit holder may do the following:
156		-	33 (A) Sell and deliver a total of not more than thirty thousand
157		-	34 (30,000) barrels of beer in a calendar year to a person holding
158		-	35 a retailer or a dealer permit under this title. The total number
159		-	36 of barrels of beer that the permit holder may sell and deliver
160		-	37 under this clause in a calendar year may not exceed thirty
161		-	38 thousand (30,000) barrels of beer.
162		-	39 (B) Be the proprietor of a restaurant that is not subject to the
163		-	40 minimum gross food sales or the minimum projected food
164		-	41 sales set forth in 905 IAC 1-41-2.
165		-	42 (C) Hold a beer retailer's permit, a wine retailer's permit, or a
166		-	EH 1217—LS 6814/DI 87 4
167		-	1 liquor retailer's permit for a restaurant established under clause
168		-	2 (B).
169		-	3 (D) Transfer beer directly from the brewery to the restaurant
170		-	4 by means of:
171		-	5 (i) bulk containers; or
172		-	6 (ii) a continuous flow system.
173		-	7 (E) Install a window between the brewery and an adjacent
174		-	8 restaurant that allows the public and the permittee to view both
175		-	9 premises.
176		-	10 (F) Install a doorway or other opening between the brewery
177		-	11 and an adjacent restaurant that provides the public and the
178		-	12 permittee with access to both premises.
179		-	13 (G) Sell the brewery's beer by the glass for consumption on the
180		-	14 premises. Brewers permitted to sell beer by the glass under
181		-	15 this clause must make food available for consumption on the
182		-	16 premises. A brewer may comply with the requirements of this
183		-	17 clause by doing any of the following:
184		-	18 (i) Allowing a vehicle of transportation that is a food
185		-	19 establishment (as defined in IC 16-18-2-137) to serve food
186		-	20 near the brewer's licensed premises.
187		-	21 (ii) Placing menus in the brewer's premises of restaurants
188		-	22 that will deliver food to the brewery.
189		-	23 (iii) Providing food prepared at the brewery.
190		-	24 (H) Sell and deliver beer to a consumer at the licensed
191		-	25 premises of the brewer or at the residence of the consumer.
192		-	26 Notwithstanding IC 7.1-1-3-20, the licensed premises may
193		-	27 include the brewery parking lot or an area adjacent to the
194		-	28 brewery that may only be used for the purpose of conveying
195		-	29 alcoholic beverages and other nonalcoholic items to a
196		-	30 customer subject to section 10 of this chapter, and may not be
197		-	31 used for point of sale purposes or any other purpose. The
198		-	32 delivery to a consumer may be made only in a quantity at any
199		-	33 one (1) time of not more than one-half (1/2) barrel, but the
200		-	34 beer may be contained in bottles or other permissible
201		-	35 containers.
202		-	36 (I) Sell the brewery's beer as authorized by this section for
203		-	37 carryout on Sunday in a quantity at any one (1) time of not
204		-	38 more than five hundred seventy-six (576) ounces. A brewer's
205		-	39 beer may be sold under this clause at any address for which the
206		-	40 brewer holds a brewer's permit issued under this chapter if the
207		-	41 address is located within the same city boundaries in which the
208		-	42 beer was manufactured.
209		-	EH 1217—LS 6814/DI 87 5
210		-	1 (J) With the approval of the commission, participate:
211		-	2 (i) individually; or
212		-	3 (ii) with other permit holders under this chapter, holders of
213		-	4 artisan distiller's permits, holders of farm winery permits, or
214		-	5 any combination of holders described in this item;
215		-	6 in a trade show or an exposition at which products of each
216		-	7 permit holder participant are displayed, promoted, and sold.
217		-	8 All of the permit holders may occupy the same tent, structure,
218		-	9 or building. The commission may not grant to a holder of a
219		-	10 permit under this chapter approval under this clause to
220		-	11 participate in a trade show or exposition for more than
221		-	12 forty-five (45) days in a calendar year.
222		-	13 (K) Store or condition beer in a secure building that is:
223		-	14 (i) separate from the brewery; and
224		-	15 (ii) owned or leased by the permit holder.
225		-	16 (L) Transfer beer from a building described in clause (K) back
226		-	17 to the brewery.
227		-	18 (M) Sell or transfer beer directly to a beer wholesaler from a
228		-	19 building described in clause (K), but may not sell or transfer
229		-	20 beer from the building to any other permittee or a consumer.
230		-	21 The brewer shall maintain an adequate written record of the
231		-	22 beer transferred:
232		-	23 (i) between the brewery and the separate building; and
233		-	24 (ii) from the separate building to the wholesaler.
234		-	25 (N) Sell the brewery's beer to the holder of a supplemental
235		-	26 caterer's permit issued under IC 7.1-3-9.5 for on-premises
236		-	27 consumption only at an event that is held outdoors on property
237		-	28 that is contiguous to the brewery as approved by the
238		-	29 commission.
239		-	30 (O) Receive liquor from the holder of a distiller's permit issued
240		-	31 under IC 7.1-3-7 or the holder of an artisan distiller's permit
241		-	32 under IC 7.1-3-27 that is located in the same county as the
242		-	33 brewery for the purpose of carbonating and canning the liquor.
243		-	34 Upon the completion of canning of the liquor, the product
244		-	35 must be returned to the original production facility within
245		-	36 forty-eight (48) hours. The activity under this clause is not an
246		-	37 interest under IC 7.1-5-9.
247		-	38 (P) Receive beer from another permit holder under this
248		-	39 subdivision for the purpose of bottling and packaging the
249		-	40 beer. Upon completion of bottling and packaging the beer,
250		-	41 the product must be returned to the original permit holder
251		-	42 who manufactured the beer. The number of barrels of beer
252		-	EH 1217—LS 6814/DI 87 6
253		-	1 that a permit holder receives, bottles, and packages under
254		-	2 this clause may not exceed the number of barrels of beer
255		-	3 that the permit holder produced from raw materials at the
256		-	4 licensed premises of the permit holder in the same
257		-	5 calendar year. The activity under this clause is not an
258		-	6 interest under IC 7.1-5-9.
259		-	7 (Q) Sell or transfer beer directly to a food manufacturer
260		-	8 located in Indiana that is registered with the federal Food
261		-	9 and Drug Administration for the purpose of adding or
262		-	10 integrating the beer into a product or recipe.
263		-	11 (6) If the brewer's brewery manufactures more than ninety
264		-	12 thousand (90,000) barrels of beer in a calendar year for sale or
265		-	13 distribution within Indiana, the permit holder may own a portion
266		-	14 of the corporate stock of another brewery that:
267		-	15 (A) is located in the same county as the brewer's brewery;
268		-	16 (B) manufactures less than ninety thousand (90,000) barrels of
269		-	17 beer in a calendar year; and
270		-	18 (C) is the proprietor of a restaurant that operates under
271		-	19 subdivision (5).
272		-	20 (7) Provide complimentary samples of beer that are:
273		-	21 (A) produced by the brewer; and
274		-	22 (B) offered to consumers for consumption on the brewer's
	119	+	12 (4) Notwithstanding any other provision of this title, a
	120	+	13 primary source of supply or wholesaler may allow a permittee
	121	+	14 on a nondiscriminatory basis to use equipment that is owned
	122	+	15 by the primary source of supply or wholesaler. However, a
	123	+	16 permittee may only use the equipment to hold and dispense
	124	+	17 alcoholic beverages to a consumer on a temporary basis
	125	+	18 during a special event.
	126	+	19 SECTION 3. IC 7.1-3-1-31 IS ADDED TO THE INDIANA CODE
	127	+	20 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
	128	+	21 1, 2023]: Sec. 31. (a) As used in this chapter, "salon" means a
	129	+	22 beauty culture salon licensed under IC 25-8-7.
	130	+	23 (b) A salon may possess and give or furnish beer by the bottle or
	131	+	24 glass, or wine by the glass, on the premises of the salon for
	132	+	25 consumption on the premises to a salon customer who is:
	133	+	26 (1) at least twenty-one (21) years of age; and
	134	+	27 (2) receiving salon services.
	135	+	28 (c) Beer or wine may only be dispensed under subsection (b) by
	136	+	29 a salon employee who holds a permit under IC 7.1-3-18-9.
	137	+	30 (d) This section may not be construed to authorize a salon to sell
	138	+	31 wine or beer on the premises of the salon without a permit under
	139	+	32 this title.
	140	+	33 SECTION 4. IC 7.1-3-2-7, AS AMENDED BY P.L.194-2021,
	141	+	34 SECTION 29, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	142	+	35 JULY 1, 2023]: Sec. 7. The holder of a brewer's permit or an
	143	+	36 out-of-state brewer holding either a primary source of supply permit or
	144	+	37 an out-of-state brewer's permit may do the following:
	145	+	38 (1) Manufacture beer.
	146	+	39 (2) Place beer in containers or bottles.
	147	+	40 (3) Transport beer.
	148	+	41 (4) Sell and deliver beer to a person holding a beer wholesaler's
	149	+	42 permit issued under IC 7.1-3-3.
	150	+	HB 1217—LS 6814/DI 87 4
	151	+	1 (5) If the brewer manufactures, at all of the brewer's breweries
	152	+	2 located in Indiana, an aggregate of not more than ninety thousand
	153	+	3 (90,000) barrels of beer in a calendar year for sale or distribution
	154	+	4 within Indiana, the permit holder may do the following:
	155	+	5 (A) Sell and deliver a total of not more than thirty thousand
	156	+	6 (30,000) barrels of beer in a calendar year to a person holding
	157	+	7 a retailer or a dealer permit under this title. The total number
	158	+	8 of barrels of beer that the permit holder may sell and deliver
	159	+	9 under this clause in a calendar year may not exceed thirty
	160	+	10 thousand (30,000) barrels of beer.
	161	+	11 (B) Be the proprietor of a restaurant that is not subject to the
	162	+	12 minimum gross food sales or the minimum projected food
	163	+	13 sales set forth in 905 IAC 1-41-2.
	164	+	14 (C) Hold a beer retailer's permit, a wine retailer's permit, or a
	165	+	15 liquor retailer's permit for a restaurant established under clause
	166	+	16 (B).
	167	+	17 (D) Transfer beer directly from the brewery to the restaurant
	168	+	18 by means of:
	169	+	19 (i) bulk containers; or
	170	+	20 (ii) a continuous flow system.
	171	+	21 (E) Install a window between the brewery and an adjacent
	172	+	22 restaurant that allows the public and the permittee to view both
275	173		23 premises.
276		-	24 (8) Own a portion of the corporate stock of a sports corporation
277		-	25 that:
278		-	26 (A) manages a minor league baseball stadium located in the
279		-	27 same county as the brewer's brewery; and
280		-	28 (B) holds a beer retailer's permit, a wine retailer's permit, or a
281		-	29 liquor retailer's permit for a restaurant located in that stadium.
282		-	30 (9) For beer described in IC 7.1-1-2-3(a)(4):
283		-	31 (A) may allow transportation to and consumption of the beer
284		-	32 on the licensed premises; and
285		-	33 (B) may not sell, offer to sell, or allow sale of the beer on the
286		-	34 licensed premises.
287		-	35 SECTION 4. IC 7.1-3-2-11 IS ADDED TO THE INDIANA CODE
288		-	36 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
289		-	37 1, 2023]: Sec. 11. (a) A finished product of a food manufacturer
290		-	38 that contains beer transferred to the food manufacturer under
291		-	39 section 7(5)(Q) of this chapter may not contain more than one-half
292		-	40 of one percent (0.5%) of alcohol by volume when the product
293		-	41 leaves the food manufacturer's facility.
294		-	42 (b) Beer that is sold or transferred to a food manufacturer
295		-	EH 1217—LS 6814/DI 87 7
296		-	1 under section 7(5)(Q) of this chapter shall be included within the
297		-	2 barrels of beer limits set forth in section 7(5)(A) of this chapter.
298		-	3 SECTION 5. IC 7.1-3-20-16, AS AMENDED BY P.L.104-2022,
299		-	4 SECTION 57, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
300		-	5 JULY 1, 2023]: Sec. 16. (a) A permit that is authorized by this section
301		-	6 may be issued without regard to the quota provisions of IC 7.1-3-22.
302		-	7 (b) The commission may issue a three-way permit to sell alcoholic
303		-	8 beverages for on-premises consumption only to an applicant who is the
304		-	9 proprietor, as owner or lessee, or both, of a restaurant facility in the
305		-	10 passenger terminal complex of a publicly owned airport. A permit
306		-	11 issued under this subsection shall not be transferred to a location off
307		-	12 the airport premises.
308		-	13 (c) Except as provided in sections 16.3 and 16.4 of this chapter, the
309		-	14 commission may issue a three-way, two-way, or one-way permit to sell
310		-	15 alcoholic beverages for on-premises consumption only to an applicant
311		-	16 who is the proprietor, as owner or lessee, or both, of a restaurant within
312		-	17 a redevelopment project consisting of a building or group of buildings
313		-	18 that:
314		-	19 (1) was formerly used as part of a union railway station;
315		-	20 (2) has been listed in or is within a district that has been listed in
316		-	21 the federal National Register of Historic Places maintained
317		-	22 pursuant to the National Historic Preservation Act of 1966, as
318		-	23 amended; and
319		-	24 (3) has been redeveloped or renovated, with the redevelopment or
320		-	25 renovation being funded in part with grants from the federal,
321		-	26 state, or local government.
322		-	27 A permit issued under this subsection shall not be transferred to a
323		-	28 location outside of the redevelopment project.
324		-	29 (d) Subject to section 16.1 of this chapter and except as provided in
325		-	30 section 16.3 of this chapter, the commission may issue a three-way,
326		-	31 two-way, or one-way permit to sell alcoholic beverages for on-premises
327		-	32 consumption only to an applicant who is the proprietor, as owner or
328		-	33 lessee, or both, of a restaurant:
329		-	34 (1) on land; or
330		-	35 (2) in a historic river vessel;
331		-	36 within a municipal riverfront development project funded in part with
332		-	37 state and city money. The ownership of a permit issued under this
333		-	38 subsection and the location for which the permit was issued may not be
334		-	39 transferred. The legislative body of the municipality in which the
335		-	40 municipal riverfront development project is located shall recommend
336		-	41 to the commission sites that are eligible to be permit premises. The
337		-	42 commission shall consider, but is not required to follow, the municipal
338		-	EH 1217—LS 6814/DI 87 8
339		-	1 legislative body's recommendation in issuing a permit under this
340		-	2 subsection. A permit holder and any lessee or proprietor of the permit
341		-	3 premises are subject to the formal written commitment required under
342		-	4 IC 7.1-3-19-17. Notwithstanding IC 7.1-3-1-3.5 and IC 7.1-3-1.1, if
343		-	5 business operations cease at the permit premises for more than six (6)
344		-	6 months, the permit shall revert to the commission. The permit holder
345		-	7 is not entitled to any refund or other compensation.
346		-	8 (e) Except as provided in sections 16.3 and 16.4 of this chapter, the
347		-	9 commission may issue a three-way, two-way, or one-way permit to sell
348		-	10 alcoholic beverages for on-premises consumption only to an applicant
349		-	11 who is the proprietor, as owner or lessee, or both, of a restaurant within
350		-	12 a renovation project consisting of:
351		-	13 (1) a building that:
352		-	14 (A) was formerly used as part of a passenger and freight
353		-	15 railway station; and
354		-	16 (B) was built before 1900; or
355		-	17 (2) a complex of buildings that:
356		-	18 (A) is part of an economic development area established under
357		-	19 IC 36-7-14; and
358		-	20 (B) includes, as part of the renovation project, the use and
359		-	21 repurposing of two (2) or more buildings and structures that
360		-	22 are:
361		-	23 (i) at least seventy-five (75) years old; and
362		-	24 (ii) located at a site at which manufacturing previously
363		-	25 occurred over a period of at least seventy-five (75) years.
364		-	26 The permit authorized by this subsection may be issued without regard
365		-	27 to the proximity provisions of IC 7.1-3-21-11.
366		-	28 (f) Except as provided in section 16.3 of this chapter, the
367		-	29 commission may issue a three-way permit for the sale of alcoholic
368		-	30 beverages for on-premises consumption at a cultural center for the
369		-	31 visual and performing arts to the following:
370		-	32 (1) A town having a population of more than twenty-three
371		-	33 thousand (23,000) and less than twenty-three thousand nine
372		-	34 hundred (23,900) located in a county having a population of more
373		-	35 than four hundred thousand (400,000) and less than seven
374		-	36 hundred thousand (700,000).
375		-	37 (2) A city that has an indoor theater as described in section 26 of
376		-	38 this chapter.
377		-	39 (g) Except as provided in section 16.3 of this chapter, the
378		-	40 commission may issue not more than ten (10) fifteen (15) new
379		-	41 three-way, two-way, or one-way permits to sell alcoholic beverages for
380		-	42 on-premises consumption to applicants, each of whom must be the
381		-	EH 1217—LS 6814/DI 87 9
382		-	1 proprietor, as owner or lessee, or both, of a restaurant located within a
383		-	2 district, or not more than seven hundred (700) one thousand five
384		-	3 hundred (1,500) feet from a district, that meets the following
385		-	4 requirements:
386		-	5 (1) The district has been listed in the National Register of Historic
387		-	6 Places maintained under the National Historic Preservation Act
388		-	7 of 1966, as amended.
389		-	8 (2) A county courthouse is located within the district.
390		-	9 (3) A historic opera house listed on the National Register of
391		-	10 Historic Places is located within the district.
392		-	11 (4) A historic jail and sheriff's house listed on the National
393		-	12 Register of Historic Places is located within the district.
394		-	13 The legislative body of the municipality in which the district is located
395		-	14 shall recommend to the commission sites that are eligible to be permit
396		-	15 premises. The commission shall consider, but is not required to follow,
397		-	16 the municipal legislative body's recommendation in issuing a permit
398		-	17 under this subsection. An applicant is not eligible for a permit if, less
399		-	18 than two (2) years before the date of the application, the applicant sold
400		-	19 a retailer's permit that was subject to IC 7.1-3-22 and that was for
401		-	20 premises located within the district described in this section or within
402		-	21 seven hundred (700) one thousand five hundred (1,500) feet of the
403		-	22 district. The ownership of a permit issued under this subsection and the
404		-	23 location for which the permit was issued shall not be transferred. A
405		-	24 permit holder and any lessee or proprietor of the permit premises is
406		-	25 subject to the formal written commitment required under
407		-	26 IC 7.1-3-19-17. Notwithstanding IC 7.1-3-1-3.5 and IC 7.1-3-1.1, if
408		-	27 business operations cease at the permit premises for more than six (6)
409		-	28 months, the permit shall revert to the commission. The permit holder
410		-	29 is not entitled to any refund or other compensation. The total number
411		-	30 of active permits issued under this subsection may not exceed ten (10)
412		-	31 fifteen (15) at any time. The cost of an initial permit issued under this
413		-	32 subsection is six thousand dollars ($6,000). twenty-five thousand
414		-	33 dollars ($25,000).
415		-	34 (h) Except as provided in section 16.3 of this chapter, the
416		-	35 commission may issue a three-way permit for the sale of alcoholic
417		-	36 beverages for on-premises consumption to an applicant who will locate
418		-	37 as the proprietor, as owner or lessee, or both, of a restaurant within an
419		-	38 economic development area under IC 36-7-14 in:
420		-	39 (1) a town having a population of more than twenty thousand
421		-	40 (20,000); or
422		-	41 (2) a city having a population of more than forty-nine thousand
423		-	42 four hundred (49,400) and less than fifty thousand (50,000);
424		-	EH 1217—LS 6814/DI 87 10
425		-	1 located in a county having a population of more than one hundred
426		-	2 twenty thousand (120,000) and less than one hundred thirty thousand
427		-	3 (130,000). The commission may issue not more than five (5) licenses
428		-	4 under this section to premises within a municipality described in
429		-	5 subdivision (1) and not more than five (5) licenses to premises within
430		-	6 a municipality described in subdivision (2). The commission shall
431		-	7 conduct an auction of the permits under IC 7.1-3-22-9, except that the
432		-	8 auction may be conducted at any time as determined by the
433		-	9 commission. Notwithstanding any other law, the minimum bid for an
434		-	10 initial license under this subsection is thirty-five thousand dollars
435		-	11 ($35,000), and the renewal fee for a license under this subsection is one
436		-	12 thousand three hundred fifty dollars ($1,350). Before the district
437		-	13 expires, a permit issued under this subsection may not be transferred.
438		-	14 After the district expires, a permit issued under this subsection may be
439		-	15 renewed, and the ownership of the permit may be transferred, but the
440		-	16 permit may not be transferred from the permit premises.
441		-	17 (i) After June 30, 2006, and except as provided in section 16.3 of
442		-	18 this chapter, the commission may issue not more than five (5) new
443		-	19 three-way, two-way, or one-way permits to sell alcoholic beverages for
444		-	20 on-premises consumption to applicants, each of whom must be the
445		-	21 proprietor, as owner or lessee, or both, of a restaurant located within a
446		-	22 district, or not more than five hundred (500) feet from a district, that
447		-	23 meets all of the following requirements:
448		-	24 (1) The district is within an economic development area, an area
449		-	25 needing redevelopment, or a redevelopment district as established
450		-	26 under IC 36-7-14.
451		-	27 (2) A unit of the National Park Service is partially located within
452		-	28 the district.
453		-	29 (3) An international deep water seaport is located within the
454		-	30 district.
455		-	31 An applicant is not eligible for a permit under this subsection if, less
456		-	32 than two (2) years before the date of the application, the applicant sold
457		-	33 a retailers' permit that was subject to IC 7.1-3-22 and that was for
458		-	34 premises located within the district described in this subsection or
459		-	35 within five hundred (500) feet of the district. A permit issued under this
460		-	36 subsection may not be transferred. If the commission issues five (5)
461		-	37 new permits under this subsection, and a permit issued under this
462		-	38 subsection is later revoked or is not renewed, the commission may
463		-	39 issue another new permit, as long as the total number of active permits
464		-	40 issued under this subsection does not exceed five (5) at any time. The
465		-	41 commission shall conduct an auction of the permits under
466		-	42 IC 7.1-3-22-9, except that the auction may be conducted at any time as
467		-	EH 1217—LS 6814/DI 87 11
468		-	1 determined by the commission.
469		-	2 (j) Subject to section 16.2 of this chapter and except as provided in
470		-	3 section 16.3 of this chapter, the commission may issue not more than
471		-	4 six (6) new three-way, two-way, or one-way permits to sell alcoholic
472		-	5 beverages for on-premises consumption only to an applicant who is the
473		-	6 proprietor, as owner or lessee, or both, of a restaurant on land within a
474		-	7 municipal lakefront development project. A permit issued under this
475		-	8 subsection may not be transferred. If the commission issues six (6) new
476		-	9 permits under this subsection, and a permit issued under this subsection
477		-	10 is later revoked or is not renewed, the commission may issue another
478		-	11 new permit, as long as the total number of active permits issued under
479		-	12 this subsection does not exceed six (6) at any time. The commission
480		-	13 shall conduct an auction of the permits under IC 7.1-3-22-9, except that
481		-	14 the auction may be conducted at any time as determined by the
482		-	15 commission. Notwithstanding any other law, the minimum bid for an
483		-	16 initial permit under this subsection is ten thousand dollars ($10,000).
484		-	17 (k) Except as provided in section 16.3 of this chapter, the
485		-	18 commission may issue not more than nine (9) new three-way permits
486		-	19 to sell alcoholic beverages for on-premises consumption to applicants,
487		-	20 each of whom must be a proprietor, as owner or lessee, or both, of a
488		-	21 restaurant located:
489		-	22 (1) within a motorsports investment district (as defined in
490		-	23 IC 5-1-17.5-11); or
491		-	24 (2) not more than one thousand five hundred (1,500) feet from a
492		-	25 motorsports investment district.
493		-	26 The ownership of a permit issued under this subsection and the location
494		-	27 for which the permit was issued shall not be transferred. If the
495		-	28 commission issues nine (9) new permits under this subsection, and a
496		-	29 permit issued under this subsection is later revoked or is not renewed,
497		-	30 the commission may issue another new permit, as long as the total
498		-	31 number of active permits issued under this subsection does not exceed
499		-	32 nine (9) at any time. A permit holder and any lessee or proprietor of the
500		-	33 permit premises are subject to the formal written commitment required
501		-	34 under IC 7.1-3-19-17. Notwithstanding IC 7.1-3-1-3.5 and IC 7.1-3-1.1,
502		-	35 if business operations cease at the permit premises for more than six
503		-	36 (6) months, the permit shall revert to the commission. The permit
504		-	37 holder is not entitled to any refund or other compensation.
505		-	38 (l) Except as provided in section 16.3 of this chapter, the
506		-	39 commission may issue not more than two (2) new three-way permits to
507		-	40 sell alcoholic beverages for on-premises consumption for premises
508		-	41 located within a qualified motorsports facility (as defined in
509		-	42 IC 5-1-17.5-14). The ownership of a permit issued under this
510		-	EH 1217—LS 6814/DI 87 12
511		-	1 subsection and the location for which the permit was issued shall not
512		-	2 be transferred. If the commission issues two (2) new permits under this
513		-	3 subsection, and a permit issued under this subsection is later revoked
514		-	4 or is not renewed, the commission may issue another new permit, as
515		-	5 long as the total number of active permits issued under this subsection
516		-	6 does not exceed two (2) at any time. A permit holder and any lessee or
517		-	7 proprietor of the permit premises are subject to the formal written
518		-	8 commitment required under IC 7.1-3-19-17. Notwithstanding
519		-	9 IC 7.1-3-1-3.5 and IC 7.1-3-1.1, if business operations cease at the
520		-	10 permit premises for more than six (6) months, the permit shall revert
521		-	11 to the commission. The permit holder is not entitled to any refund or
522		-	12 other compensation.
523		-	13 SECTION 6. IC 7.1-3-20-16.8, AS AMENDED BY P.L.285-2019,
524		-	14 SECTION 36, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
525		-	15 JULY 1, 2023]: Sec. 16.8. (a) A permit that is authorized by this
526		-	16 section may be issued without regard to the quota provisions of
527		-	17 IC 7.1-3-22.
528		-	18 (b) Except as provided in section 16.3 of this chapter, the
529		-	19 commission may issue not more than four (4) new three-way permits
530		-	20 to sell alcoholic beverages for on-premises consumption to applicants
531		-	21 in each of the following municipalities:
532		-	22 (1) Whitestown.
533		-	23 (2) (1) Lebanon.
534		-	24 (3) (2) Zionsville.
535		-	25 (4) (3) Westfield.
536		-	26 (5) (4) Carmel.
537		-	27 (6) (5) Fishers.
538		-	28 (c) The following apply to permits issued under this section
539		-	29 subsection (b):
540		-	30 (1) An applicant for a permit under this section subsection (b)
541		-	31 must be a proprietor, as owner or lessee, or both, of a restaurant
542		-	32 located within an economic development area, an area needing
543		-	33 redevelopment, or a redevelopment district as established under
544		-	34 IC 36-7-14 in a municipality's:
545		-	35 (A) downtown redevelopment district; or
546		-	36 (B) downtown economic revitalization area.
547		-	37 (2) The cost of an initial permit is forty thousand dollars
548		-	38 ($40,000).
549		-	39 (3) The total number of active permits issued under this section
550		-	40 subsection (b) may not exceed twenty-four (24) twenty (20)
551		-	41 permits at any time. If any of the permits issued under this section
552		-	42 subsection (b) are revoked or not renewed, the commission may
553		-	EH 1217—LS 6814/DI 87 13
554		-	1 issue only enough new permits to bring the total number of
555		-	2 permits to twenty-four (24) twenty (20) active permits, with not
556		-	3 more than four (4) in each municipality listed in subsection (b)(1)
557		-	4 through (b)(6) (b)(5).
558		-	5 (4) The municipality may adopt an ordinance under
559		-	6 IC 7.1-3-19-17 requiring a permit holder to enter into a formal
560		-	7 written commitment as a condition of eligibility for a permit. As
561		-	8 set forth in IC 7.1-3-19-17(b), a formal written commitment is
562		-	9 binding on the permit holder and on any lessee or proprietor of
563		-	10 the permit premises.
564		-	11 (5) Notwithstanding IC 7.1-3-1-3.5 and IC 7.1-3-1.1, if business
565		-	12 operations cease at the permit premises for more than six (6)
566		-	13 months, the permit shall revert to the commission and the permit
567		-	14 holder is not entitled to any refund or other compensation.
568		-	15 (6) Except as provided in subdivision (8), the ownership of a
569		-	16 permit may not be transferred.
570		-	17 (7) A permit may not be transferred from the premises for which
571		-	18 the permit was issued.
572		-	19 (8) If the area in which the permit premises is located is no longer
573		-	20 designated an economic development area, an area needing
574		-	21 redevelopment, or a redevelopment district, a permit issued under
575		-	22 this section may be renewed, and the ownership of the permit may
576		-	23 be transferred, but the permit may not be transferred from the
577		-	24 permit premises.
578		-	25 (d) Except as provided in section 16.3 of this chapter, the
579		-	26 commission may issue not more than the following to the town of
580		-	27 Whitestown:
581		-	28 (1) Three (3) new three-way permits.
582		-	29 (2) Three (3) new two-way permits.
583		-	30 (3) One (1) new liquor dealer's permit.
584		-	31 (e) The following apply to permits issued under subsection (d):
585		-	32 (1) An applicant for a permit under subsection (d)(1) or (d)(2)
586		-	33 must be a proprietor, as owner or lessee, or both, of a
587		-	34 restaurant located within an economic development area, an
588		-	35 area needing redevelopment, or a redevelopment district as
589		-	36 established under IC 36-7-14 in a municipality's:
590		-	37 (A) downtown redevelopment district; or
591		-	38 (B) downtown economic revitalization area.
592		-	39 (2) The cost of an initial permit is forty thousand dollars
593		-	40 ($40,000).
594		-	41 (3) The total number of active permits issued under
595		-	42 subsection (d) may not exceed seven (7) permits at any time.
596		-	EH 1217—LS 6814/DI 87 14
597		-	1 (4) The municipality may adopt an ordinance under
598		-	2 IC 7.1-3-19-17 requiring a permit holder to enter into a
599		-	3 formal written commitment as a condition of eligibility for a
600		-	4 permit. As set forth in IC 7.1-3-19-17(b), a formal written
601		-	5 commitment is binding on the permit holder and on any lessee
602		-	6 or proprietor of the permit premises.
603		-	7 (5) Notwithstanding IC 7.1-3-1-3.5 and IC 7.1-3-1.1, if
604		-	8 business operations cease at the permit premises for more
605		-	9 than six (6) months, the permit shall revert to the commission
606		-	10 and the permit holder is not entitled to any refund or other
607		-	11 compensation.
608		-	12 (6) Except as provided in subdivision (8), the ownership of a
609		-	13 permit may not be transferred.
610		-	14 (7) A permit may not be transferred from the premises for
611		-	15 which the permit was issued.
612		-	16 (8) If the area in which the permit issued to a premises under
613		-	17 subsection (d)(1) or (d)(2) is located is no longer designated an
614		-	18 economic development area, an area needing redevelopment,
615		-	19 or a redevelopment district, a permit issued under this section
616		-	20 may be renewed, and the ownership of the permit may be
617		-	21 transferred, but the permit may not be transferred from the
618		-	22 permit premises.
619		-	23 SECTION 7. IC 7.1-3-22-4.5 IS ADDED TO THE INDIANA
620		-	24 CODE AS A NEW SECTION TO READ AS FOLLOWS
621		-	25 [EFFECTIVE JULY 1, 2023]: Sec. 4.5. (a) As used in this section,
622		-	26 "eligible grocery store" means a grocery store (as defined in
623		-	27 IC 7.1-1-3-18.5(a)(1)) that meets the following criteria:
624		-	28 (1) Is operated in a consolidated city.
625		-	29 (2) Was established in whole or in part through a food
626		-	30 empowerment pilot project authorized under P.L.165-2021,
627		-	31 SECTION 6 and awarded to a nonprofit corporation for the
628		-	32 benefit of establishing the grocery store.
629		-	33 (3) Operates with less than eighteen thousand (18,000) square
630		-	34 feet of building space.
631		-	35 (4) Provides access to fresh and healthy foods to individuals
632		-	36 in a low income area where access to resources for fresh and
633		-	37 healthy food, particularly fresh fruits and vegetables and
634		-	38 fresh meat, poultry, and fish, is limited.
635		-	39 (b) The commission shall issue a beer dealer's permit and a wine
636		-	40 dealer's permit to an eligible grocery store without regard to the
637		-	41 quota provisions of this chapter.
638		-	42 (c) A permit issued under this section is subject to the following:
639		-	EH 1217—LS 6814/DI 87 15
640		-	1 (1) A permit issued under this section may be renewed, and
641		-	2 the ownership of the permit may be transferred, but the
642		-	3 permit may not be transferred from the permit premises.
643		-	4 (2) Notwithstanding IC 7.1-3-1.1, if the premises ceases to
644		-	5 qualify as an eligible grocery store for more than six (6)
645		-	6 months, the permit shall revert to the commission and the
646		-	7 permit holder is not entitled to any refund or other
647		-	8 compensation.
648		-	9 SECTION 8. IC 7.1-3-27-3, AS AMENDED BY P.L.159-2014,
649		-	10 SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
650		-	11 JULY 1, 2023]: Sec. 3. (a) An artisan distiller may produce not more
651		-	12 than ten twenty thousand (10,000) (20,000) gallons of liquor in any
652		-	13 calendar year. Liquor produced by an artisan distiller that is sold
653		-	14 through a wholesaler licensed under IC 7.1-3-8 may not be counted
654		-	15 toward the gallonage limit.
655		-	16 (b) An artisan distiller who knowingly or intentionally violates this
656		-	17 section commits a Class B misdemeanor.
657		-	18 SECTION 9. IC 7.1-5-3-1, AS AMENDED BY P.L.79-2015,
658		-	19 SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
659		-	20 JULY 1, 2023]: Sec. 1. (a) This section does not apply to the following:
660		-	21 (1) An establishment where alcoholic beverages are sold that is
661		-	22 owned, in whole or part, by an entity that holds a brewer's permit
662		-	23 issued under IC 7.1-3-2-2(b).
663		-	24 (2) An establishment where alcoholic beverages are sold that is
664		-	25 owned, in whole or part, by a statewide trade organization
665		-	26 consisting of members, each of whom holds a brewer's permit
666		-	27 issued under IC 7.1-3-2-2(b).
667		-	28 (3) Beer that is bottled and packaged under IC 7.1-3-2-7(5)(P).
668		-	29 (b) Except as provided in section 6 of this chapter, it is unlawful to
669		-	30 sell beer in this state at retail in a bottle, can, or other container, unless
670		-	31 the bottle, can, or other container was packaged and sealed by the
671		-	32 brewer at the brewer's bottling house contiguous or adjacent to the
672		-	33 brewery in which the beer was produced.
673		-	34 (c) A person who knowingly or intentionally violates subsection (b)
674		-	35 commits a Class B misdemeanor.
675		-	36 SECTION 10. IC 7.1-5-7-11, AS AMENDED BY P.L.105-2022,
676		-	37 SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
677		-	38 JULY 1, 2023]: Sec. 11. (a) The provisions of sections 9 and 10 of this
678		-	39 chapter shall not apply if the public place involved is one (1) of the
679		-	40 following:
680		-	41 (1) Civic center.
681		-	42 (2) Convention center.
682		-	EH 1217—LS 6814/DI 87 16
683		-	1 (3) Sports arena.
684		-	2 (4) Bowling center.
685		-	3 (5) Bona fide club.
686		-	4 (6) Drug store.
687		-	5 (7) Grocery store.
688		-	6 (8) Boat.
689		-	7 (9) Dining car.
690		-	8 (10) Pullman car.
691		-	9 (11) Club car.
692		-	10 (12) Passenger airplane.
693		-	11 (13) Horse racetrack facility holding a recognized meeting permit
694		-	12 under IC 4-31-5.
695		-	13 (14) Satellite facility (as defined in IC 4-31-2.1-36).
696		-	14 (15) Catering hall under IC 7.1-3-20-24 that is not open to the
697		-	15 public.
698		-	16 (16) That part of a restaurant which is separate from a room in
699		-	17 which is located a bar over which alcoholic beverages are sold or
700		-	18 dispensed by the drink.
701		-	19 (17) Entertainment complex.
702		-	20 (18) Indoor golf facility.
703		-	21 (19) A recreational facility such as a golf course, bowling center,
704		-	22 or similar facility that has the recreational activity and not the sale
705		-	23 of food and beverages as the principal purpose or function of the
706		-	24 person's business.
707		-	25 (20) A licensed premises owned or operated by a postsecondary
708		-	26 educational institution described in IC 21-17-6-1.
709		-	27 (21) An automobile racetrack.
710		-	28 (22) An indoor theater under IC 7.1-3-20-26.
711		-	29 (23) A senior residence facility campus (as defined in
712		-	30 IC 7.1-3-1-29(c)) at which alcoholic beverages are given or
713		-	31 furnished as provided under IC 7.1-3-1-29.
714		-	32 (24) A hotel other than a part of a hotel that is a room in a
715		-	33 restaurant in which a bar is located over which alcoholic
716		-	34 beverages are sold or dispensed by the drink.
717		-	35 (25) The location of an allowable event to which IC 7.1-3-6.1
718		-	36 applies.
719		-	37 (26) The location of a charity auction to which IC 7.1-3-6.2
720		-	38 applies.
721		-	39 (27) A tour of a brewery as provided in IC 7.1-3-20-16.4, if the
722		-	40 minor is in the company of a parent, legal guardian or custodian,
723		-	41 or family member who is at least twenty-one (21) years of age.
724		-	42 (28) A farm winery and any additional locations of the farm
725		-	EH 1217—LS 6814/DI 87 17
726		-	1 winery under IC 7.1-3-12, if the minor is in the company of a
727		-	2 parent, legal guardian or custodian, or family member who is at
728		-	3 least twenty-one (21) years of age and the minor is accompanied
729		-	4 by the adult in any area that the adult may be present whether or
730		-	5 not the area:
731		-	6 (A) is separated in any manner from where the wine is
732		-	7 manufactured, sold, or consumed within the farm winery
733		-	8 premises; or
734		-	9 (B) operates under a retailer's permit.
735		-	10 (29) An artisan distillery under IC 7.1-3-27, if:
736		-	11 (A) the person who holds the artisan distiller's permit also
737		-	12 holds a farm winery permit under IC 7.1-3-12, or
738		-	13 IC 7.1-3-20-16.4(a) applies to the person; and
739		-	14 (B) the minor is in the company of a parent, legal guardian or
740		-	15 custodian, or family member who is at least twenty-one (21)
741		-	16 years of age.
742		-	17 (30) An art instruction studio under IC 7.1-5-8-4.6.
743		-	18 (31) The licensed premises of a food hall under IC 7.1-3-20-29
744		-	19 and the food and beverage vending space of a food hall vendor
745		-	20 permittee under IC 7.1-3-20-30. However, sections 9 and 10 of
746		-	21 this chapter apply to a bar within the food and beverage vending
747		-	22 space of a food hall vendor permittee under IC 7.1-3-20-30 that
748		-	23 serves alcoholic beverages intended to be consumed while sitting
749		-	24 or standing at the bar.
	174	+	24 (F) Install a doorway or other opening between the brewery
	175	+	25 and an adjacent restaurant that provides the public and the
	176	+	26 permittee with access to both premises.
	177	+	27 (G) Sell the brewery's beer by the glass for consumption on the
	178	+	28 premises. Brewers permitted to sell beer by the glass under
	179	+	29 this clause must make food available for consumption on the
	180	+	30 premises. A brewer may comply with the requirements of this
	181	+	31 clause by doing any of the following:
	182	+	32 (i) Allowing a vehicle of transportation that is a food
	183	+	33 establishment (as defined in IC 16-18-2-137) to serve food
	184	+	34 near the brewer's licensed premises.
	185	+	35 (ii) Placing menus in the brewer's premises of restaurants
	186	+	36 that will deliver food to the brewery.
	187	+	37 (iii) Providing food prepared at the brewery.
	188	+	38 (H) Sell and deliver beer to a consumer at the licensed
	189	+	39 premises of the brewer or at the residence of the consumer.
	190	+	40 Notwithstanding IC 7.1-1-3-20, the licensed premises may
	191	+	41 include the brewery parking lot or an area adjacent to the
	192	+	42 brewery that may only be used for the purpose of conveying
	193	+	HB 1217—LS 6814/DI 87 5
	194	+	1 alcoholic beverages and other nonalcoholic items to a
	195	+	2 customer subject to section 10 of this chapter, and may not be
	196	+	3 used for point of sale purposes or any other purpose. The
	197	+	4 delivery to a consumer may be made only in a quantity at any
	198	+	5 one (1) time of not more than one-half (1/2) barrel, but the
	199	+	6 beer may be contained in bottles or other permissible
	200	+	7 containers.
	201	+	8 (I) Sell the brewery's beer as authorized by this section for
	202	+	9 carryout on Sunday in a quantity at any one (1) time of not
	203	+	10 more than five hundred seventy-six (576) ounces. A brewer's
	204	+	11 beer may be sold under this clause at any address for which the
	205	+	12 brewer holds a brewer's permit issued under this chapter if the
	206	+	13 address is located within the same city boundaries in which the
	207	+	14 beer was manufactured.
	208	+	15 (J) With the approval of the commission, participate:
	209	+	16 (i) individually; or
	210	+	17 (ii) with other permit holders under this chapter, holders of
	211	+	18 artisan distiller's permits, holders of farm winery permits, or
	212	+	19 any combination of holders described in this item;
	213	+	20 in a trade show or an exposition at which products of each
	214	+	21 permit holder participant are displayed, promoted, and sold.
	215	+	22 All of the permit holders may occupy the same tent, structure,
	216	+	23 or building. The commission may not grant to a holder of a
	217	+	24 permit under this chapter approval under this clause to
	218	+	25 participate in a trade show or exposition for more than
	219	+	26 forty-five (45) days in a calendar year.
	220	+	27 (K) Store or condition beer in a secure building that is:
	221	+	28 (i) separate from the brewery; and
	222	+	29 (ii) owned or leased by the permit holder.
	223	+	30 (L) Transfer beer from a building described in clause (K) back
	224	+	31 to the brewery.
	225	+	32 (M) Sell or transfer beer directly to a beer wholesaler from a
	226	+	33 building described in clause (K), but may not sell or transfer
	227	+	34 beer from the building to any other permittee or a consumer.
	228	+	35 The brewer shall maintain an adequate written record of the
	229	+	36 beer transferred:
	230	+	37 (i) between the brewery and the separate building; and
	231	+	38 (ii) from the separate building to the wholesaler.
	232	+	39 (N) Sell the brewery's beer to the holder of a supplemental
	233	+	40 caterer's permit issued under IC 7.1-3-9.5 for on-premises
	234	+	41 consumption only at an event that is held outdoors on property
	235	+	42 that is contiguous to the brewery as approved by the
	236	+	HB 1217—LS 6814/DI 87 6
	237	+	1 commission.
	238	+	2 (O) Receive liquor from the holder of a distiller's permit issued
	239	+	3 under IC 7.1-3-7 or the holder of an artisan distiller's permit
	240	+	4 under IC 7.1-3-27 that is located in the same county as the
	241	+	5 brewery for the purpose of carbonating and canning the liquor.
	242	+	6 Upon the completion of canning of the liquor, the product
	243	+	7 must be returned to the original production facility within
	244	+	8 forty-eight (48) hours. The activity under this clause is not an
	245	+	9 interest under IC 7.1-5-9.
	246	+	10 (P) Receive beer from another permit holder under this
	247	+	11 subdivision for the purpose of bottling and packaging the
	248	+	12 beer. Upon completion of bottling and packaging the beer,
	249	+	13 the product must be returned to the original permit holder.
	250	+	14 The number of gallons of beer that a permit holder
	251	+	15 receives, bottles, and packages under this clause may not
	252	+	16 exceed the number of gallons of beer that the permit
	253	+	17 holder produced from raw materials at the licensed
	254	+	18 premises of the permit holder in the same calendar year.
	255	+	19 The activity under this clause is not an interest under
	256	+	20 IC 7.1-5-9.
	257	+	21 (Q) Sell or transfer beer directly to a food manufacturer
	258	+	22 located in Indiana that is registered with the federal Food
	259	+	23 and Drug Administration for the purpose of adding or
	260	+	24 integrating the beer into a product or recipe.
	261	+	25 (6) If the brewer's brewery manufactures more than ninety
	262	+	26 thousand (90,000) barrels of beer in a calendar year for sale or
	263	+	27 distribution within Indiana, the permit holder may own a portion
	264	+	28 of the corporate stock of another brewery that:
	265	+	29 (A) is located in the same county as the brewer's brewery;
	266	+	30 (B) manufactures less than ninety thousand (90,000) barrels of
	267	+	31 beer in a calendar year; and
	268	+	32 (C) is the proprietor of a restaurant that operates under
	269	+	33 subdivision (5).
	270	+	34 (7) Provide complimentary samples of beer that are:
	271	+	35 (A) produced by the brewer; and
	272	+	36 (B) offered to consumers for consumption on the brewer's
	273	+	37 premises.
	274	+	38 (8) Own a portion of the corporate stock of a sports corporation
	275	+	39 that:
	276	+	40 (A) manages a minor league baseball stadium located in the
	277	+	41 same county as the brewer's brewery; and
	278	+	42 (B) holds a beer retailer's permit, a wine retailer's permit, or a
	279	+	HB 1217—LS 6814/DI 87 7
	280	+	1 liquor retailer's permit for a restaurant located in that stadium.
	281	+	2 (9) For beer described in IC 7.1-1-2-3(a)(4):
	282	+	3 (A) may allow transportation to and consumption of the beer
	283	+	4 on the licensed premises; and
	284	+	5 (B) may not sell, offer to sell, or allow sale of the beer on the
	285	+	6 licensed premises.
	286	+	7 SECTION 5. IC 7.1-3-2-11 IS ADDED TO THE INDIANA CODE
	287	+	8 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
	288	+	9 1, 2023]: Sec. 11. (a) A finished product of a food manufacturer
	289	+	10 that contains beer transferred to the food manufacturer under
	290	+	11 section 7(5)(Q) of this chapter may not contain more than one-half
	291	+	12 of one percent (0.5%) of alcohol by volume when the product
	292	+	13 leaves the food manufacturer's facility.
	293	+	14 (b) Beer that is sold or transferred to a food manufacturer
	294	+	15 under section 7(5)(Q) of this chapter shall be included within the
	295	+	16 barrels of beer limits set forth in section 7(5)(A) of this chapter.
	296	+	17 SECTION 6. IC 7.1-3-12-5, AS AMENDED BY P.L.194-2021,
	297	+	18 SECTION 42, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	298	+	19 JULY 1, 2023]: Sec. 5. (a) The following apply to the holder of a farm
	299	+	20 winery permit:
	300	+	21 (1) A holder is entitled to manufacture wine and to place wine
	301	+	22 produced by the permit holder's farm winery in bottles or other
	302	+	23 permissible containers.
	303	+	24 (2) A holder is entitled to serve complimentary samples of the
	304	+	25 winery's wine on the licensed premises or an outside area that is
	305	+	26 contiguous to the licensed premises, as approved by the
	306	+	27 commission if each employee who serves wine on the licensed
	307	+	28 premises:
	308	+	29 (A) holds an employee's permit under IC 7.1-3-18-9; and
	309	+	30 (B) completes a server training program approved by the
	310	+	31 commission.
	311	+	32 (3) A holder is entitled to sell the winery's wine on the licensed
	312	+	33 premises to consumers either by:
	313	+	34 (A) the glass;
	314	+	35 (B) the bottle;
	315	+	36 (C) a box that contains a bag designed for storing and
	316	+	37 dispensing wine;
	317	+	38 (D) any combination of receptacles listed in clauses (A)
	318	+	39 through (C); or
	319	+	40 (E) any other container permissible under federal law.
	320	+	41 Notwithstanding IC 7.1-1-3-20, the licensed premises may
	321	+	42 include the farm winery parking lot or an area adjacent to the farm
	322	+	HB 1217—LS 6814/DI 87 8
	323	+	1 winery. The parking lot or an adjacent area may only be used for
	324	+	2 the purpose of conveying alcoholic beverages and other
	325	+	3 nonalcoholic items to a customer subject to section 5.5 of this
	326	+	4 chapter, and may not be used for point of sale purposes or any
	327	+	5 other purpose.
	328	+	6 (4) A holder is entitled to:
	329	+	7 (A) serve complimentary samples of the winery's wine; and
	330	+	8 (B) sell the winery's wine to consumers by the bottle;
	331	+	9 at a farmers' market that is operated on a nonprofit basis.
	332	+	10 (5) A holder is entitled to sell wine by:
	333	+	11 (A) the bottle;
	334	+	12 (B) the can;
	335	+	13 (C) a box that contains a bag designed for storing and
	336	+	14 dispensing wine;
	337	+	15 (D) bulk container;
	338	+	16 (E) the case; or
	339	+	17 (F) any combination of receptacles listed in clauses (A)
	340	+	18 through (E);
	341	+	19 to a person who is the holder of a permit to sell wine at wholesale.
	342	+	20 (6) A holder is exempt from the provisions of IC 7.1-3-14.
	343	+	21 (7) A holder is entitled to advertise the name and address of any
	344	+	22 retailer or dealer who sells wine produced by the permit holder's
	345	+	23 winery.
	346	+	24 (8) A holder for wine described in IC 7.1-1-2-3(a)(4):
	347	+	25 (A) may allow transportation to and consumption of the wine
	348	+	26 on the licensed premises; and
	349	+	27 (B) may not sell, offer to sell, or allow the sale of the wine on
	350	+	28 the licensed premises.
	351	+	29 (9) A holder is entitled to purchase and sell bulk wine as set forth
	352	+	30 in this chapter.
	353	+	31 (10) A holder is entitled to sell wine as authorized by this section
	354	+	32 for carryout on Sunday.
	355	+	33 (11) A holder is entitled to sell and ship the farm winery's wine to
	356	+	34 a person located in another state in accordance with the laws of
	357	+	35 the other state.
	358	+	36 (12) A holder is entitled to sell the farm winery's wine to the
	359	+	37 holder of a supplemental caterer's permit issued under
	360	+	38 IC 7.1-3-9.5 for on-premises consumption only at an event that is
	361	+	39 held outdoors on property that is contiguous to the farm winery as
	362	+	40 approved by the commission.
	363	+	41 (13) A holder is entitled to be the proprietor of a restaurant that is
	364	+	42 not subject to the minimum gross food sales or the minimum
	365	+	HB 1217—LS 6814/DI 87 9
	366	+	1 projected food sales set forth in 905 IAC 1-41-2 and the gross
	367	+	2 retail income requirements to sell carryout under IC 7.1-3-20-9.5.
	368	+	3 A holder is entitled to conduct the following activities:
	369	+	4 (A) Hold a beer retailer's permit, a wine retailer's permit, or a
	370	+	5 liquor retailer's permit for a restaurant.
	371	+	6 (B) Transfer wine directly from the farm winery to a restaurant
	372	+	7 that the farm winery has an interest in by means of:
	373	+	8 (i) bottles or cans;
	374	+	9 (ii) bulk containers; or
	375	+	10 (iii) a continuous flow system.
	376	+	11 (C) Install a window between the farm winery and an adjacent
	377	+	12 restaurant that allows the public and the holder of the permit
	378	+	13 to view both premises.
	379	+	14 (D) Install a doorway or other opening between the farm
	380	+	15 winery and an adjacent restaurant that provides the public and
	381	+	16 the holder of the permit with access to both the farm winery
	382	+	17 and restaurant.
	383	+	18 (14) A holder that does not distribute through an Indiana wine
	384	+	19 wholesaler is entitled under the farm winery permit to sell and
	385	+	20 deliver to a person holding a wine retailer or wine dealer permit
	386	+	21 under this title a total of not more than three thousand (3,000)
	387	+	22 gallons of the farm winery's wine in a calendar year, if the farm
	388	+	23 winery has not sold in Indiana more than fifteen thousand
	389	+	24 (15,000) gallons the previous calendar year. A holder that sells
	390	+	25 and delivers under this subdivision shall comply with all
	391	+	26 provisions applicable to a wholesaler in 905 IAC 1-5.1, 905
	392	+	27 IAC 1-5.2, 905 IAC 1-21, 905 IAC 1-31, and 905 IAC 1-32.1.
	393	+	28 (15) A holder must annually submit to the commission copies of
	394	+	29 its Indiana and federal excise tax returns.
	395	+	30 (b) With the approval of the commission, a holder of a permit under
	396	+	31 this chapter may conduct business at not more than three (3) additional
	397	+	32 locations that are separate from the winery. At the additional locations,
	398	+	33 the holder of a permit may conduct any business that is authorized at
	399	+	34 the first location, except for manufacturing wine or placing wine in
	400	+	35 bottles or containers.
	401	+	36 (c) A farm winery may transfer wine from a storage facility or an
	402	+	37 additional location described in subsection (b). A farm winery may sell
	403	+	38 or transfer wine directly to a wine wholesaler from a storage facility
	404	+	39 separate from the farm winery or an additional location described in
	405	+	40 subsection (b). A farm winery may not sell or transfer wine from a
	406	+	41 storage facility to any other permittee or a consumer. The farm winery
	407	+	42 shall maintain an adequate written record of wine transferred:
	408	+	HB 1217—LS 6814/DI 87 10
	409	+	1 (1) between the farm winery and the storage facility; and
	410	+	2 (2) from the storage facility to the wholesaler.
	411	+	3 (d) With the approval of the commission, a holder of a permit under
	412	+	4 this chapter may:
	413	+	5 (1) individually; or
	414	+	6 (2) with other permit holders under this chapter, holders of artisan
	415	+	7 distiller's permits, holders of brewer's permits issued under
	416	+	8 IC 7.1-3-2-2(b), or any combination of holders described in this
	417	+	9 subdivision;
	418	+	10 participate in a trade show or an exposition at which products of each
	419	+	11 permit holder participant are displayed, promoted, and sold. All of the
	420	+	12 permit holders may occupy the same tent, structure, or building. The
	421	+	13 commission may not grant approval under this subsection to a holder
	422	+	14 of a permit under this chapter for more than forty-five (45) days in a
	423	+	15 calendar year.
	424	+	16 SECTION 7. IC 7.1-3-18-9, AS AMENDED BY P.L.196-2015,
	425	+	17 SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	426	+	18 JULY 1, 2023]: Sec. 9. (a) The commission may issue an employee's
	427	+	19 permit to a person who desires to act as:
	428	+	20 (1) a clerk in a package liquor store;
	429	+	21 (2) an employee who serves wine at a farm winery; or
	430	+	22 (3) a bartender, waiter, waitress, or manager in a retail
	431	+	23 establishment, excepting dining car and boat employees; or
	432	+	24 (4) a salon employee who serves beer or wine at a salon under
	433	+	25 IC 7.1-3-1-31.
	434	+	26 (b) A permit authorized by this section is conditioned upon the
	435	+	27 compliance by the holder with reasonable rules relating to the permit
	436	+	28 which the commission may prescribe from time to time.
	437	+	29 (c) A permit issued under this section entitles its holder to work for
	438	+	30 any lawful employer. However, a person may work without an
	439	+	31 employee's permit for thirty (30) days from the date shown on a receipt
	440	+	32 for a cashier's check or money order payable to the commission for that
	441	+	33 person's employee's permit application.
	442	+	34 (d) A person who, for a package liquor store or retail establishment,
	443	+	35 is:
	444	+	36 (1) the sole proprietor;
	445	+	37 (2) a partner, a general partner, or a limited partner in a
	446	+	38 partnership or limited partnership that owns the business
	447	+	39 establishment;
	448	+	40 (3) a member of a limited liability company that owns the
	449	+	41 business establishment; or
	450	+	42 (4) a stockholder in a corporation that owns the business
	451	+	HB 1217—LS 6814/DI 87 11
	452	+	1 establishment;
	453	+	2 is not required to obtain an employee's permit in order to perform any
	454	+	3 of the acts listed in subsection (a).
	455	+	4 (e) An applicant may declare on the application form that the
	456	+	5 applicant will use the employee's permit only to perform volunteer
	457	+	6 service that benefits a nonprofit organization. It is unlawful for an
	458	+	7 applicant who makes a declaration under this subsection to use an
	459	+	8 employee's permit for any purpose other than to perform volunteer
	460	+	9 service that benefits a nonprofit organization.
	461	+	10 (f) The commission may not issue an employee's permit to an
	462	+	11 applicant while the applicant is serving a sentence for a conviction for
	463	+	12 operating while intoxicated, including any term of probation or parole.
	464	+	13 (g) The commission may not issue an employee's permit to an
	465	+	14 applicant who has two (2) unrelated convictions for operating while
	466	+	15 intoxicated if:
	467	+	16 (1) the first conviction occurred less than ten (10) years before the
	468	+	17 date of the applicant's application for the permit; and
	469	+	18 (2) the applicant completed the sentence for the second
	470	+	19 conviction, including any term of probation or parole, less than
	471	+	20 two (2) years before the date of the applicant's application for the
	472	+	21 permit.
	473	+	22 (h) If an applicant for an employee's permit has at least three (3)
	474	+	23 unrelated convictions for operating while intoxicated in the ten (10)
	475	+	24 years immediately preceding the date of the applicant's application for
	476	+	25 the permit, the commission may not grant the issuance of the permit.
	477	+	26 If, in the ten (10) years immediately preceding the date of the
	478	+	27 applicant's application the applicant has:
	479	+	28 (1) one (1) conviction for operating while intoxicated, and the
	480	+	29 applicant is not subject to subsection (f); or
	481	+	30 (2) two (2) unrelated convictions for operating while intoxicated,
	482	+	31 and the applicant is not subject to subsection (f) or (g);
	483	+	32 the commission may grant or deny the issuance of a permit.
	484	+	33 (i) Except as provided under section 9.5 of this chapter, the
	485	+	34 commission shall revoke a permit issued to an employee under this
	486	+	35 section if:
	487	+	36 (1) the employee is convicted of a Class B misdemeanor for
	488	+	37 violating IC 7.1-5-10-15(a); or
	489	+	38 (2) the employee is convicted of operating while intoxicated after
	490	+	39 the issuance of the permit.
	491	+	40 The commission may revoke a permit issued to an employee under this
	492	+	41 section for any violation of this title or the rules adopted by the
	493	+	42 commission.
	494	+	HB 1217—LS 6814/DI 87 12
	495	+	1 SECTION 8. IC 7.1-3-20-16, AS AMENDED BY P.L.104-2022,
	496	+	2 SECTION 57, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	497	+	3 JULY 1, 2023]: Sec. 16. (a) A permit that is authorized by this section
	498	+	4 may be issued without regard to the quota provisions of IC 7.1-3-22.
	499	+	5 (b) The commission may issue a three-way permit to sell alcoholic
	500	+	6 beverages for on-premises consumption only to an applicant who is the
	501	+	7 proprietor, as owner or lessee, or both, of a restaurant facility in the
	502	+	8 passenger terminal complex of a publicly owned airport. A permit
	503	+	9 issued under this subsection shall not be transferred to a location off
	504	+	10 the airport premises.
	505	+	11 (c) Except as provided in sections 16.3 and 16.4 of this chapter, the
	506	+	12 commission may issue a three-way, two-way, or one-way permit to sell
	507	+	13 alcoholic beverages for on-premises consumption only to an applicant
	508	+	14 who is the proprietor, as owner or lessee, or both, of a restaurant within
	509	+	15 a redevelopment project consisting of a building or group of buildings
	510	+	16 that:
	511	+	17 (1) was formerly used as part of a union railway station;
	512	+	18 (2) has been listed in or is within a district that has been listed in
	513	+	19 the federal National Register of Historic Places maintained
	514	+	20 pursuant to the National Historic Preservation Act of 1966, as
	515	+	21 amended; and
	516	+	22 (3) has been redeveloped or renovated, with the redevelopment or
	517	+	23 renovation being funded in part with grants from the federal,
	518	+	24 state, or local government.
	519	+	25 A permit issued under this subsection shall not be transferred to a
	520	+	26 location outside of the redevelopment project.
	521	+	27 (d) Subject to section 16.1 of this chapter and except as provided in
	522	+	28 section 16.3 of this chapter, the commission may issue a three-way,
	523	+	29 two-way, or one-way permit to sell alcoholic beverages for on-premises
	524	+	30 consumption only to an applicant who is the proprietor, as owner or
	525	+	31 lessee, or both, of a restaurant:
	526	+	32 (1) on land; or
	527	+	33 (2) in a historic river vessel;
	528	+	34 within a municipal riverfront development project funded in part with
	529	+	35 state and city money. The ownership of a permit issued under this
	530	+	36 subsection and the location for which the permit was issued may not be
	531	+	37 transferred. The legislative body of the municipality in which the
	532	+	38 municipal riverfront development project is located shall recommend
	533	+	39 to the commission sites that are eligible to be permit premises. The
	534	+	40 commission shall consider, but is not required to follow, the municipal
	535	+	41 legislative body's recommendation in issuing a permit under this
	536	+	42 subsection. A permit holder and any lessee or proprietor of the permit
	537	+	HB 1217—LS 6814/DI 87 13
	538	+	1 premises are subject to the formal written commitment required under
	539	+	2 IC 7.1-3-19-17. Notwithstanding IC 7.1-3-1-3.5 and IC 7.1-3-1.1, if
	540	+	3 business operations cease at the permit premises for more than six (6)
	541	+	4 months, the permit shall revert to the commission. The permit holder
	542	+	5 is not entitled to any refund or other compensation.
	543	+	6 (e) Except as provided in sections 16.3 and 16.4 of this chapter, the
	544	+	7 commission may issue a three-way, two-way, or one-way permit to sell
	545	+	8 alcoholic beverages for on-premises consumption only to an applicant
	546	+	9 who is the proprietor, as owner or lessee, or both, of a restaurant within
	547	+	10 a renovation project consisting of:
	548	+	11 (1) a building that:
	549	+	12 (A) was formerly used as part of a passenger and freight
	550	+	13 railway station; and
	551	+	14 (B) was built before 1900; or
	552	+	15 (2) a complex of buildings that:
	553	+	16 (A) is part of an economic development area established under
	554	+	17 IC 36-7-14; and
	555	+	18 (B) includes, as part of the renovation project, the use and
	556	+	19 repurposing of two (2) or more buildings and structures that
	557	+	20 are:
	558	+	21 (i) at least seventy-five (75) years old; and
	559	+	22 (ii) located at a site at which manufacturing previously
	560	+	23 occurred over a period of at least seventy-five (75) years.
	561	+	24 The permit authorized by this subsection may be issued without regard
	562	+	25 to the proximity provisions of IC 7.1-3-21-11.
	563	+	26 (f) Except as provided in section 16.3 of this chapter, the
	564	+	27 commission may issue a three-way permit for the sale of alcoholic
	565	+	28 beverages for on-premises consumption at a cultural center for the
	566	+	29 visual and performing arts to the following:
	567	+	30 (1) A town having a population of more than twenty-three
	568	+	31 thousand (23,000) and less than twenty-three thousand nine
	569	+	32 hundred (23,900) located in a county having a population of more
	570	+	33 than four hundred thousand (400,000) and less than seven
	571	+	34 hundred thousand (700,000).
	572	+	35 (2) A city that has an indoor theater as described in section 26 of
	573	+	36 this chapter.
	574	+	37 (g) Except as provided in section 16.3 of this chapter, the
	575	+	38 commission may issue not more than ten (10) fifteen (15) new
	576	+	39 three-way, two-way, or one-way permits to sell alcoholic beverages for
	577	+	40 on-premises consumption to applicants, each of whom must be the
	578	+	41 proprietor, as owner or lessee, or both, of a restaurant located within a
	579	+	42 district, or not more than seven hundred (700) one thousand five
	580	+	HB 1217—LS 6814/DI 87 14
	581	+	1 hundred (1,500) feet from a district, that meets the following
	582	+	2 requirements:
	583	+	3 (1) The district has been listed in the National Register of Historic
	584	+	4 Places maintained under the National Historic Preservation Act
	585	+	5 of 1966, as amended.
	586	+	6 (2) A county courthouse is located within the district.
	587	+	7 (3) A historic opera house listed on the National Register of
	588	+	8 Historic Places is located within the district.
	589	+	9 (4) A historic jail and sheriff's house listed on the National
	590	+	10 Register of Historic Places is located within the district.
	591	+	11 The legislative body of the municipality in which the district is located
	592	+	12 shall recommend to the commission sites that are eligible to be permit
	593	+	13 premises. The commission shall consider, but is not required to follow,
	594	+	14 the municipal legislative body's recommendation in issuing a permit
	595	+	15 under this subsection. An applicant is not eligible for a permit if, less
	596	+	16 than two (2) years before the date of the application, the applicant sold
	597	+	17 a retailer's permit that was subject to IC 7.1-3-22 and that was for
	598	+	18 premises located within the district described in this section or within
	599	+	19 seven hundred (700) one thousand five hundred (1,500) feet of the
	600	+	20 district. The ownership of a permit issued under this subsection and the
	601	+	21 location for which the permit was issued shall not be transferred. A
	602	+	22 permit holder and any lessee or proprietor of the permit premises is
	603	+	23 subject to the formal written commitment required under
	604	+	24 IC 7.1-3-19-17. Notwithstanding IC 7.1-3-1-3.5 and IC 7.1-3-1.1, if
	605	+	25 business operations cease at the permit premises for more than six (6)
	606	+	26 months, the permit shall revert to the commission. The permit holder
	607	+	27 is not entitled to any refund or other compensation. The total number
	608	+	28 of active permits issued under this subsection may not exceed ten (10)
	609	+	29 fifteen (15) at any time. The cost of an initial permit issued under this
	610	+	30 subsection is six thousand dollars ($6,000). twenty-five thousand
	611	+	31 dollars ($25,000).
	612	+	32 (h) Except as provided in section 16.3 of this chapter, the
	613	+	33 commission may issue a three-way permit for the sale of alcoholic
	614	+	34 beverages for on-premises consumption to an applicant who will locate
	615	+	35 as the proprietor, as owner or lessee, or both, of a restaurant within an
	616	+	36 economic development area under IC 36-7-14 in:
	617	+	37 (1) a town having a population of more than twenty thousand
	618	+	38 (20,000); or
	619	+	39 (2) a city having a population of more than forty-nine thousand
	620	+	40 four hundred (49,400) and less than fifty thousand (50,000);
	621	+	41 located in a county having a population of more than one hundred
	622	+	42 twenty thousand (120,000) and less than one hundred thirty thousand
	623	+	HB 1217—LS 6814/DI 87 15
	624	+	1 (130,000). The commission may issue not more than five (5) licenses
	625	+	2 under this section to premises within a municipality described in
	626	+	3 subdivision (1) and not more than five (5) licenses to premises within
	627	+	4 a municipality described in subdivision (2). The commission shall
	628	+	5 conduct an auction of the permits under IC 7.1-3-22-9, except that the
	629	+	6 auction may be conducted at any time as determined by the
	630	+	7 commission. Notwithstanding any other law, the minimum bid for an
	631	+	8 initial license under this subsection is thirty-five thousand dollars
	632	+	9 ($35,000), and the renewal fee for a license under this subsection is one
	633	+	10 thousand three hundred fifty dollars ($1,350). Before the district
	634	+	11 expires, a permit issued under this subsection may not be transferred.
	635	+	12 After the district expires, a permit issued under this subsection may be
	636	+	13 renewed, and the ownership of the permit may be transferred, but the
	637	+	14 permit may not be transferred from the permit premises.
	638	+	15 (i) After June 30, 2006, and except as provided in section 16.3 of
	639	+	16 this chapter, the commission may issue not more than five (5) new
	640	+	17 three-way, two-way, or one-way permits to sell alcoholic beverages for
	641	+	18 on-premises consumption to applicants, each of whom must be the
	642	+	19 proprietor, as owner or lessee, or both, of a restaurant located within a
	643	+	20 district, or not more than five hundred (500) feet from a district, that
	644	+	21 meets all of the following requirements:
	645	+	22 (1) The district is within an economic development area, an area
	646	+	23 needing redevelopment, or a redevelopment district as established
	647	+	24 under IC 36-7-14.
	648	+	25 (2) A unit of the National Park Service is partially located within
	649	+	26 the district.
	650	+	27 (3) An international deep water seaport is located within the
	651	+	28 district.
	652	+	29 An applicant is not eligible for a permit under this subsection if, less
	653	+	30 than two (2) years before the date of the application, the applicant sold
	654	+	31 a retailers' permit that was subject to IC 7.1-3-22 and that was for
	655	+	32 premises located within the district described in this subsection or
	656	+	33 within five hundred (500) feet of the district. A permit issued under this
	657	+	34 subsection may not be transferred. If the commission issues five (5)
	658	+	35 new permits under this subsection, and a permit issued under this
	659	+	36 subsection is later revoked or is not renewed, the commission may
	660	+	37 issue another new permit, as long as the total number of active permits
	661	+	38 issued under this subsection does not exceed five (5) at any time. The
	662	+	39 commission shall conduct an auction of the permits under
	663	+	40 IC 7.1-3-22-9, except that the auction may be conducted at any time as
	664	+	41 determined by the commission.
	665	+	42 (j) Subject to section 16.2 of this chapter and except as provided in
	666	+	HB 1217—LS 6814/DI 87 16
	667	+	1 section 16.3 of this chapter, the commission may issue not more than
	668	+	2 six (6) new three-way, two-way, or one-way permits to sell alcoholic
	669	+	3 beverages for on-premises consumption only to an applicant who is the
	670	+	4 proprietor, as owner or lessee, or both, of a restaurant on land within a
	671	+	5 municipal lakefront development project. A permit issued under this
	672	+	6 subsection may not be transferred. If the commission issues six (6) new
	673	+	7 permits under this subsection, and a permit issued under this subsection
	674	+	8 is later revoked or is not renewed, the commission may issue another
	675	+	9 new permit, as long as the total number of active permits issued under
	676	+	10 this subsection does not exceed six (6) at any time. The commission
	677	+	11 shall conduct an auction of the permits under IC 7.1-3-22-9, except that
	678	+	12 the auction may be conducted at any time as determined by the
	679	+	13 commission. Notwithstanding any other law, the minimum bid for an
	680	+	14 initial permit under this subsection is ten thousand dollars ($10,000).
	681	+	15 (k) Except as provided in section 16.3 of this chapter, the
	682	+	16 commission may issue not more than nine (9) new three-way permits
	683	+	17 to sell alcoholic beverages for on-premises consumption to applicants,
	684	+	18 each of whom must be a proprietor, as owner or lessee, or both, of a
	685	+	19 restaurant located:
	686	+	20 (1) within a motorsports investment district (as defined in
	687	+	21 IC 5-1-17.5-11); or
	688	+	22 (2) not more than one thousand five hundred (1,500) feet from a
	689	+	23 motorsports investment district.
	690	+	24 The ownership of a permit issued under this subsection and the location
	691	+	25 for which the permit was issued shall not be transferred. If the
	692	+	26 commission issues nine (9) new permits under this subsection, and a
	693	+	27 permit issued under this subsection is later revoked or is not renewed,
	694	+	28 the commission may issue another new permit, as long as the total
	695	+	29 number of active permits issued under this subsection does not exceed
	696	+	30 nine (9) at any time. A permit holder and any lessee or proprietor of the
	697	+	31 permit premises are subject to the formal written commitment required
	698	+	32 under IC 7.1-3-19-17. Notwithstanding IC 7.1-3-1-3.5 and IC 7.1-3-1.1,
	699	+	33 if business operations cease at the permit premises for more than six
	700	+	34 (6) months, the permit shall revert to the commission. The permit
	701	+	35 holder is not entitled to any refund or other compensation.
	702	+	36 (l) Except as provided in section 16.3 of this chapter, the
	703	+	37 commission may issue not more than two (2) new three-way permits to
	704	+	38 sell alcoholic beverages for on-premises consumption for premises
	705	+	39 located within a qualified motorsports facility (as defined in
	706	+	40 IC 5-1-17.5-14). The ownership of a permit issued under this
	707	+	41 subsection and the location for which the permit was issued shall not
	708	+	42 be transferred. If the commission issues two (2) new permits under this
	709	+	HB 1217—LS 6814/DI 87 17
	710	+	1 subsection, and a permit issued under this subsection is later revoked
	711	+	2 or is not renewed, the commission may issue another new permit, as
	712	+	3 long as the total number of active permits issued under this subsection
	713	+	4 does not exceed two (2) at any time. A permit holder and any lessee or
	714	+	5 proprietor of the permit premises are subject to the formal written
	715	+	6 commitment required under IC 7.1-3-19-17. Notwithstanding
	716	+	7 IC 7.1-3-1-3.5 and IC 7.1-3-1.1, if business operations cease at the
	717	+	8 permit premises for more than six (6) months, the permit shall revert
	718	+	9 to the commission. The permit holder is not entitled to any refund or
	719	+	10 other compensation.
	720	+	11 SECTION 9. IC 7.1-3-27-3, AS AMENDED BY P.L.159-2014,
	721	+	12 SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	722	+	13 JULY 1, 2023]: Sec. 3. (a) An artisan distiller may produce not more
	723	+	14 than ten twenty thousand (10,000) (20,000) gallons of liquor in any
	724	+	15 calendar year. Liquor produced by an artisan distiller that is sold
	725	+	16 through a wholesaler licensed under IC 7.1-3-8 may not be counted
	726	+	17 toward the gallonage limit.
	727	+	18 (b) An artisan distiller who knowingly or intentionally violates this
	728	+	19 section commits a Class B misdemeanor.
	729	+	20 SECTION 10. IC 7.1-3-27-8, AS AMENDED BY P.L.194-2021,
	730	+	21 SECTION 59, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	731	+	22 JULY 1, 2023]: Sec. 8. (a) The holder of an artisan distiller's permit
	732	+	23 may do only the following:
	733	+	24 (1) Manufacture liquor, including blending using liquor
	734	+	25 purchased from another manufacturer with liquor the artisan
	735	+	26 distiller manufactures under section 11 of this chapter.
	736	+	27 (2) Bottle liquor manufactured by the artisan distiller.
	737	+	28 (3) Insert liquor manufactured by the artisan distiller into a
	738	+	29 container.
	739	+	30 (4) Store liquor manufactured by the artisan distiller, including at
	740	+	31 a facility located within ten (10) miles of the artisan distiller's
	741	+	32 distillery.
	742	+	33 (5) Transport, sell, and deliver liquor manufactured by the artisan
	743	+	34 distiller to:
	744	+	35 (A) places outside Indiana; or
	745	+	36 (B) the holder of a liquor wholesaler's permit under IC 7.1-3-8.
	746	+	37 (6) Sell liquor manufactured by the artisan distiller to consumers
	747	+	38 by the drink, bottle, container, or case from the licensed premises
	748	+	39 of the distillery where the liquor was manufactured.
	749	+	40 Notwithstanding IC 7.1-1-3-20, the licensed premises may
	750	+	41 include the distillery parking lot or an area adjacent to the artisan
	751	+	42 distillery. The parking lot or adjacent area may only be used for
	752	+	HB 1217—LS 6814/DI 87 18
	753	+	1 the purpose of conveying alcoholic beverages and other
	754	+	2 nonalcoholic items to a customer subject to section 8.1 of this
	755	+	3 chapter and may not be used for point of sale purposes or any
	756	+	4 other purpose.
	757	+	5 (7) Serve complimentary samples of the liquor manufactured by
	758	+	6 the artisan distiller to consumers on the premises of the distillery
	759	+	7 where the liquor was manufactured.
	760	+	8 (8) Sell liquor as authorized by this section for carryout on
	761	+	9 Sunday in a quantity at any one (1) time of not more than four and
	762	+	10 five-tenths (4.5) liters.
	763	+	11 (9) With the approval of the commission, participate:
	764	+	12 (A) individually; or
	765	+	13 (B) with other permit holders under this chapter, holders of
	766	+	14 farm winery permits, holders of brewer's permits issued under
	767	+	15 IC 7.1-3-2-2(b), or any combination of holders described in
	768	+	16 this clause;
	769	+	17 in a trade show or an exposition at which products of each permit
	770	+	18 holder participant are displayed, promoted, and sold. All of the
	771	+	19 permit holders may occupy the same tent, structure, or building.
	772	+	20 The commission may not grant to a holder of a permit under this
	773	+	21 chapter approval under this subdivision to participate in a trade
	774	+	22 show or exposition for more than forty-five (45) days in a
	775	+	23 calendar year.
	776	+	24 (10) Be the proprietor of a restaurant that is not subject to the
	777	+	25 minimum gross food sales or the minimum projected food sales
	778	+	26 set forth in 905 IAC 1-41-2 and the gross retail income
	779	+	27 requirements to sell carryout under IC 7.1-3-20-9.5. A holder is
	780	+	28 entitled to conduct the following activities:
	781	+	29 (A) Hold a beer retailer's permit, a wine retailer's permit, or a
	782	+	30 liquor retailer's permit for a restaurant.
	783	+	31 (B) Transfer liquor directly from the artisan distillery to a
	784	+	32 restaurant that the artisan distiller has an interest in by means
	785	+	33 of:
	786	+	34 (i) bottles;
	787	+	35 (ii) bulk containers; or
	788	+	36 (iii) a continuous flow system.
	789	+	37 (C) Install a window between the artisan distillery and an
	790	+	38 adjacent restaurant that allows the public and the holder of the
	791	+	39 permit to view both premises.
	792	+	40 (D) Install a doorway or other opening between the artisan
	793	+	41 distillery and an adjacent restaurant that provides the public
	794	+	42 and the holder of the permit with access to both the artisan
	795	+	HB 1217—LS 6814/DI 87 19
	796	+	1 distillery and restaurant.
	797	+	2 (11) A holder that does not distribute through an Indiana liquor
	798	+	3 wholesaler is entitled under the artisan distiller's permit to sell and
	799	+	4 deliver to a person holding a liquor retailer or liquor dealer permit
	800	+	5 under this title a total of not more than one thousand (1,000)
	801	+	6 gallons of the artisan distillery's liquor in a calendar year, if the
	802	+	7 artisan distiller has not sold in Indiana more than nine thousand
	803	+	8 (9,000) gallons the previous calendar year. A holder that sells and
	804	+	9 delivers under this subdivision shall comply with all provisions
	805	+	10 applicable to a wholesaler in 905 IAC 1-5.1, 905 IAC 1-5.2, 905
	806	+	11 IAC 1-21, 905 IAC 1-31, and 905 IAC 1-32.1.
	807	+	12 (12) A holder must annually submit to the commission copies of
	808	+	13 its Indiana and federal excise tax returns.
	809	+	14 (b) The holder of an artisan distiller's permit who provides samples
	810	+	15 or sells liquor by the glass must furnish the minimum food
	811	+	16 requirements prescribed by the commission.
	812	+	17 (c) A storage facility used by an artisan distiller under subsection
	813	+	18 (a)(4) must conform with federal laws, rules, and regulations. An
	814	+	19 artisan distiller may transfer liquor from a separate storage facility back
	815	+	20 to the artisan distillery. An artisan distiller may sell or transfer liquor
	816	+	21 directly to a liquor wholesaler from a storage facility that is separate
	817	+	22 from the artisan distillery. An artisan distiller may not sell or transfer
	818	+	23 liquor from a storage facility to any other permittee or a consumer. The
	819	+	24 artisan distiller shall maintain an adequate written record of the liquor
	820	+	25 transferred:
	821	+	26 (1) between the artisan distillery and the storage facility; and
	822	+	27 (2) from the storage facility to the liquor wholesaler.
	823	+	28 (d) The holder of an artisan distiller's permit may transport liquor to
	824	+	29 and from a brewery located within the same county for the purposes of
	825	+	30 carbonating and canning by the brewery. The activity under this
	826	+	31 subsection is not an interest under IC 7.1-5-9.
	827	+	32 (e) An artisan distiller who knowingly or intentionally violates this
	828	+	33 section commits a Class B misdemeanor.
	829	+	34 SECTION 11. IC 7.1-3-27-11, AS AMENDED BY P.L.159-2014,
	830	+	35 SECTION 13, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	831	+	36 JULY 1, 2023]: Sec. 11. (a) An artisan distiller may obtain and use
	832	+	37 blend liquor that the artisan distiller obtains from another manufacturer
	833	+	38 with liquor that the artisan distiller manufactures. The artisan distiller
	834	+	39 may sell the blended liquor as liquor that the artisan distiller
	835	+	40 manufactures only if the final product contains at least sixty percent
	836	+	41 (60%) of liquor that was fermented and distilled from raw materials by
	837	+	42 the artisan distiller at the licensed premises of the artisan distiller. in
	838	+	HB 1217—LS 6814/DI 87 20
	839	+	1 the manner permitted by this section.
	840	+	2 (b) Subject to subsection (c), an artisan distiller may use in a
	841	+	3 calendar year not more than ten thousand (10,000) gallons of
	842	+	4 liquor that the artisan distiller obtains from another manufacturer.
	843	+	5 (c) The number of gallons of liquor that the artisan distiller
	844	+	6 obtains and uses from another manufacturer in a calendar year
	845	+	7 may not exceed the number of gallons of liquor that the artisan
	846	+	8 distiller fermented and distilled from raw materials at the licensed
	847	+	9 premises of the artisan distiller in the same calendar year.
	848	+	10 (b) (d) An artisan distiller who knowingly or intentionally sells
	849	+	11 blended liquor that contains less than sixty percent (60%) of liquor that
	850	+	12 was fermented and distilled from raw materials by the artisan distiller
	851	+	13 at the licensed premises of the artisan distiller violates subsection (b)
	852	+	14 or (c), as applicable, commits a Class B misdemeanor.
	853	+	15 SECTION 12. IC 7.1-5-3-1, AS AMENDED BY P.L.79-2015,
	854	+	16 SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	855	+	17 JULY 1, 2023]: Sec. 1. (a) This section does not apply to the following:
	856	+	18 (1) An establishment where alcoholic beverages are sold that is
	857	+	19 owned, in whole or part, by an entity that holds a brewer's permit
	858	+	20 issued under IC 7.1-3-2-2(b).
	859	+	21 (2) An establishment where alcoholic beverages are sold that is
	860	+	22 owned, in whole or part, by a statewide trade organization
	861	+	23 consisting of members, each of whom holds a brewer's permit
	862	+	24 issued under IC 7.1-3-2-2(b).
	863	+	25 (3) Beer that is bottled and packaged under IC 7.1-3-2-7(5)(P).
	864	+	26 (b) Except as provided in section 6 of this chapter, it is unlawful to
	865	+	27 sell beer in this state at retail in a bottle, can, or other container, unless
	866	+	28 the bottle, can, or other container was packaged and sealed by the
	867	+	29 brewer at the brewer's bottling house contiguous or adjacent to the
	868	+	30 brewery in which the beer was produced.
	869	+	31 (c) A person who knowingly or intentionally violates subsection (b)
	870	+	32 commits a Class B misdemeanor.
	871	+	33 SECTION 13. IC 7.1-5-7-11, AS AMENDED BY P.L.105-2022,
	872	+	34 SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	873	+	35 JULY 1, 2023]: Sec. 11. (a) The provisions of sections 9 and 10 of this
	874	+	36 chapter shall not apply if the public place involved is one (1) of the
	875	+	37 following:
	876	+	38 (1) Civic center.
	877	+	39 (2) Convention center.
	878	+	40 (3) Sports arena.
	879	+	41 (4) Bowling center.
	880	+	42 (5) Bona fide club.
	881	+	HB 1217—LS 6814/DI 87 21
	882	+	1 (6) Drug store.
	883	+	2 (7) Grocery store.
	884	+	3 (8) Boat.
	885	+	4 (9) Dining car.
	886	+	5 (10) Pullman car.
	887	+	6 (11) Club car.
	888	+	7 (12) Passenger airplane.
	889	+	8 (13) Horse racetrack facility holding a recognized meeting permit
	890	+	9 under IC 4-31-5.
	891	+	10 (14) Satellite facility (as defined in IC 4-31-2.1-36).
	892	+	11 (15) Catering hall under IC 7.1-3-20-24 that is not open to the
	893	+	12 public.
	894	+	13 (16) That part of a restaurant which is separate from a room in
	895	+	14 which is located a bar over which alcoholic beverages are sold or
	896	+	15 dispensed by the drink.
	897	+	16 (17) Entertainment complex.
	898	+	17 (18) Indoor golf facility.
	899	+	18 (19) A recreational facility such as a golf course, bowling center,
	900	+	19 or similar facility that has the recreational activity and not the sale
	901	+	20 of food and beverages as the principal purpose or function of the
	902	+	21 person's business.
	903	+	22 (20) A licensed premises owned or operated by a postsecondary
	904	+	23 educational institution described in IC 21-17-6-1.
	905	+	24 (21) An automobile racetrack.
	906	+	25 (22) An indoor theater under IC 7.1-3-20-26.
	907	+	26 (23) A senior residence facility campus (as defined in
	908	+	27 IC 7.1-3-1-29(c)) at which alcoholic beverages are given or
	909	+	28 furnished as provided under IC 7.1-3-1-29.
	910	+	29 (24) A hotel other than a part of a hotel that is a room in a
	911	+	30 restaurant in which a bar is located over which alcoholic
	912	+	31 beverages are sold or dispensed by the drink.
	913	+	32 (25) The location of an allowable event to which IC 7.1-3-6.1
	914	+	33 applies.
	915	+	34 (26) The location of a charity auction to which IC 7.1-3-6.2
	916	+	35 applies.
	917	+	36 (27) A tour of a brewery as provided in IC 7.1-3-20-16.4, if the
	918	+	37 minor is in the company of a parent, legal guardian or custodian,
	919	+	38 or family member who is at least twenty-one (21) years of age.
	920	+	39 (28) A farm winery and any additional locations of the farm
	921	+	40 winery under IC 7.1-3-12, if the minor is in the company of a
	922	+	41 parent, legal guardian or custodian, or family member who is at
	923	+	42 least twenty-one (21) years of age and the minor is accompanied
	924	+	HB 1217—LS 6814/DI 87 22
	925	+	1 by the adult in any area that the adult may be present whether or
	926	+	2 not the area:
	927	+	3 (A) is separated in any manner from where the wine is
	928	+	4 manufactured, sold, or consumed within the farm winery
	929	+	5 premises; or
	930	+	6 (B) operates under a retailer's permit.
	931	+	7 (29) An artisan distillery under IC 7.1-3-27, if:
	932	+	8 (A) the person who holds the artisan distiller's permit also
	933	+	9 holds a farm winery permit under IC 7.1-3-12, or
	934	+	10 IC 7.1-3-20-16.4(a) applies to the person; and
	935	+	11 (B) the minor is in the company of a parent, legal guardian or
	936	+	12 custodian, or family member who is at least twenty-one (21)
	937	+	13 years of age.
	938	+	14 (30) An art instruction studio under IC 7.1-5-8-4.6.
	939	+	15 (31) The licensed premises of a food hall under IC 7.1-3-20-29
	940	+	16 and the food and beverage vending space of a food hall vendor
	941	+	17 permittee under IC 7.1-3-20-30. However, sections 9 and 10 of
	942	+	18 this chapter apply to a bar within the food and beverage vending
	943	+	19 space of a food hall vendor permittee under IC 7.1-3-20-30 that
	944	+	20 serves alcoholic beverages intended to be consumed while sitting
	945	+	21 or standing at the bar.
	946	+	22 (32) A beauty culture salon licensed under IC 25-8-7 at which
	947	+	23 wine and beer are given or furnished as provided under
	948	+	24 IC 7.1-3-1-31.
750	949		25 (b) For the purpose of this subsection, "food" means meals prepared
751	950		26 on the licensed premises. It is lawful for a minor to be on licensed
752	951		27 premises in a room in which is located a bar over which alcoholic
753	952		28 beverages are sold or dispensed by the drink if all the following
754	953		29 conditions are met:
755	954		30 (1) The minor is eighteen (18) years of age or older.
756		-	31 (2~~) (1~~) The minor is in the company of a parent, guardian, or
757		-	32 ~~family~~ member who is twenty-one (21) years of age or older.
758		-	33 (3~~) (2~~) The purpose for being on the licensed premises is the
	955	+	31 (2) The minor is in the company of a parent, guardian, or family
	956	+	32 member who is twenty-one (21) years of age or older.
	957	+	33 (3) The purpose for being on the licensed premises is the
759	958		34 consumption of food and not the consumption of alcoholic
760	959		35 beverages.
761		-	36 (3) The minor, accompanied by the parent, guardian, or
762		-	37 family member who is twenty-one (21) years of age or older,
763		-	38 must be seated at a table or booth in the bar area and shall
764		-	39 not be seated at the bar over which alcoholic beverages are
765		-	40 sold or dispensed by the drink.
766		-	EH 1217—LS 6814/DI 87 18
	960	+	HB 1217—LS 6814/DI 87 23
767	961		COMMITTEE REPORT
768	962		Mr. Speaker: Your Committee on Public Policy, to which was
769	963		referred House Bill 1217, has had the same under consideration and
770	964		begs leave to report the same back to the House with the
771	965		recommendation that said bill be amended as follows:
772	966		Page 1, between the enacting clause and line 1, begin a new
773	967		paragraph and insert:
774	968		"SECTION 1. IC 7.1-1-3-16.5, AS AMENDED BY P.L.194-2021,
775	969		SECTION 13, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
776	970		JULY 1, 2023]: Sec. 16.5. The term "entertainment complex" means a
777	971		premises that complies with one (1) or more of the following
778	972		requirements:
779	973		(1) The premises:
780	974		(A) is a site for the performance of musical, theatrical, or other
781	975		entertainment; and
782	976		(B) includes an area where at least six hundred (600)
783	977		individuals may be seated at one (1) time in permanent
784	978		seating.
785	979		(2) The premises:
786	980		(A) is located entirely within a four (4) five (5) mile radius of
787	981		the center of a consolidated city;
788	982		(B) is used by a nonprofit organization primarily as a museum
789	983		of fine arts, as a fine arts theater, or for the professional
790	984		performance of musical or theatrical entertainment; and
791	985		(C) has audience seating in one (1) or more performance
792	986		spaces for at least two hundred (200) individuals.".
793	987		Page 2, after line 41, begin a new paragraph and insert:
794	988		"SECTION 3. IC 7.1-3-1-31 IS ADDED TO THE INDIANA CODE
795	989		AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
796	990		1, 2023]: Sec. 31. (a) As used in this chapter, "salon" means a
797	991		beauty culture salon licensed under IC 25-8-7.
798	992		(b) A salon may possess and give or furnish beer by the bottle or
799	993		glass, or wine by the glass, on the premises of the salon for
800	994		consumption on the premises to a salon customer who is:
801	995		(1) at least twenty-one (21) years of age; and
802	996		(2) receiving salon services.
803	997		(c) Beer or wine may only be dispensed under subsection (b) by
804	998		a salon employee who holds a permit under IC 7.1-3-18-9.
805	999		(d) This section may not be construed to authorize a salon to sell
806	1000		wine or beer on the premises of the salon without a permit under
807	1001		this title.
808	1002		SECTION 4. IC 7.1-3-2-7, AS AMENDED BY P.L.194-2021,
809		-	EH 1217—LS 6814/DI 87 19
	1003	+	HB 1217—LS 6814/DI 87 24
810	1004		SECTION 29, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
811	1005		JULY 1, 2023]: Sec. 7. The holder of a brewer's permit or an
812	1006		out-of-state brewer holding either a primary source of supply permit or
813	1007		an out-of-state brewer's permit may do the following:
814	1008		(1) Manufacture beer.
815	1009		(2) Place beer in containers or bottles.
816	1010		(3) Transport beer.
817	1011		(4) Sell and deliver beer to a person holding a beer wholesaler's
818	1012		permit issued under IC 7.1-3-3.
819	1013		(5) If the brewer manufactures, at all of the brewer's breweries
820	1014		located in Indiana, an aggregate of not more than ninety thousand
821	1015		(90,000) barrels of beer in a calendar year for sale or distribution
822	1016		within Indiana, the permit holder may do the following:
823	1017		(A) Sell and deliver a total of not more than thirty thousand
824	1018		(30,000) barrels of beer in a calendar year to a person holding
825	1019		a retailer or a dealer permit under this title. The total number
826	1020		of barrels of beer that the permit holder may sell and deliver
827	1021		under this clause in a calendar year may not exceed thirty
828	1022		thousand (30,000) barrels of beer.
829	1023		(B) Be the proprietor of a restaurant that is not subject to the
830	1024		minimum gross food sales or the minimum projected food
831	1025		sales set forth in 905 IAC 1-41-2.
832	1026		(C) Hold a beer retailer's permit, a wine retailer's permit, or a
833	1027		liquor retailer's permit for a restaurant established under clause
834	1028		(B).
835	1029		(D) Transfer beer directly from the brewery to the restaurant
836	1030		by means of:
837	1031		(i) bulk containers; or
838	1032		(ii) a continuous flow system.
839	1033		(E) Install a window between the brewery and an adjacent
840	1034		restaurant that allows the public and the permittee to view both
841	1035		premises.
842	1036		(F) Install a doorway or other opening between the brewery
843	1037		and an adjacent restaurant that provides the public and the
844	1038		permittee with access to both premises.
845	1039		(G) Sell the brewery's beer by the glass for consumption on the
846	1040		premises. Brewers permitted to sell beer by the glass under
847	1041		this clause must make food available for consumption on the
848	1042		premises. A brewer may comply with the requirements of this
849	1043		clause by doing any of the following:
850	1044		(i) Allowing a vehicle of transportation that is a food
851	1045		establishment (as defined in IC 16-18-2-137) to serve food
852		-	EH 1217—LS 6814/DI 87 20
	1046	+	HB 1217—LS 6814/DI 87 25
853	1047		near the brewer's licensed premises.
854	1048		(ii) Placing menus in the brewer's premises of restaurants
855	1049		that will deliver food to the brewery.
856	1050		(iii) Providing food prepared at the brewery.
857	1051		(H) Sell and deliver beer to a consumer at the licensed
858	1052		premises of the brewer or at the residence of the consumer.
859	1053		Notwithstanding IC 7.1-1-3-20, the licensed premises may
860	1054		include the brewery parking lot or an area adjacent to the
861	1055		brewery that may only be used for the purpose of conveying
862	1056		alcoholic beverages and other nonalcoholic items to a
863	1057		customer subject to section 10 of this chapter, and may not be
864	1058		used for point of sale purposes or any other purpose. The
865	1059		delivery to a consumer may be made only in a quantity at any
866	1060		one (1) time of not more than one-half (1/2) barrel, but the
867	1061		beer may be contained in bottles or other permissible
868	1062		containers.
869	1063		(I) Sell the brewery's beer as authorized by this section for
870	1064		carryout on Sunday in a quantity at any one (1) time of not
871	1065		more than five hundred seventy-six (576) ounces. A brewer's
872	1066		beer may be sold under this clause at any address for which the
873	1067		brewer holds a brewer's permit issued under this chapter if the
874	1068		address is located within the same city boundaries in which the
875	1069		beer was manufactured.
876	1070		(J) With the approval of the commission, participate:
877	1071		(i) individually; or
878	1072		(ii) with other permit holders under this chapter, holders of
879	1073		artisan distiller's permits, holders of farm winery permits, or
880	1074		any combination of holders described in this item;
881	1075		in a trade show or an exposition at which products of each
882	1076		permit holder participant are displayed, promoted, and sold.
883	1077		All of the permit holders may occupy the same tent, structure,
884	1078		or building. The commission may not grant to a holder of a
885	1079		permit under this chapter approval under this clause to
886	1080		participate in a trade show or exposition for more than
887	1081		forty-five (45) days in a calendar year.
888	1082		(K) Store or condition beer in a secure building that is:
889	1083		(i) separate from the brewery; and
890	1084		(ii) owned or leased by the permit holder.
891	1085		(L) Transfer beer from a building described in clause (K) back
892	1086		to the brewery.
893	1087		(M) Sell or transfer beer directly to a beer wholesaler from a
894	1088		building described in clause (K), but may not sell or transfer
895		-	EH 1217—LS 6814/DI 87 21
	1089	+	HB 1217—LS 6814/DI 87 26
896	1090		beer from the building to any other permittee or a consumer.
897	1091		The brewer shall maintain an adequate written record of the
898	1092		beer transferred:
899	1093		(i) between the brewery and the separate building; and
900	1094		(ii) from the separate building to the wholesaler.
901	1095		(N) Sell the brewery's beer to the holder of a supplemental
902	1096		caterer's permit issued under IC 7.1-3-9.5 for on-premises
903	1097		consumption only at an event that is held outdoors on property
904	1098		that is contiguous to the brewery as approved by the
905	1099		commission.
906	1100		(O) Receive liquor from the holder of a distiller's permit issued
907	1101		under IC 7.1-3-7 or the holder of an artisan distiller's permit
908	1102		under IC 7.1-3-27 that is located in the same county as the
909	1103		brewery for the purpose of carbonating and canning the liquor.
910	1104		Upon the completion of canning of the liquor, the product
911	1105		must be returned to the original production facility within
912	1106		forty-eight (48) hours. The activity under this clause is not an
913	1107		interest under IC 7.1-5-9.
914	1108		(P) Receive beer from another permit holder under this
915	1109		subdivision for the purpose of bottling and packaging the
916	1110		beer. Upon completion of bottling and packaging the beer,
917	1111		the product must be returned to the original permit holder.
918	1112		The number of gallons of beer that a permit holder
919	1113		receives, bottles, and packages under this clause may not
920	1114		exceed the number of gallons of beer that the permit
921	1115		holder produced from raw materials at the licensed
922	1116		premises of the permit holder in the same calendar year.
923	1117		The activity under this clause is not an interest under
924	1118		IC 7.1-5-9.
925	1119		(Q) Sell or transfer beer directly to a food manufacturer
926	1120		located in Indiana that is registered with the federal Food
927	1121		and Drug Administration for the purpose of adding or
928	1122		integrating the beer into a product or recipe.
929	1123		(6) If the brewer's brewery manufactures more than ninety
930	1124		thousand (90,000) barrels of beer in a calendar year for sale or
931	1125		distribution within Indiana, the permit holder may own a portion
932	1126		of the corporate stock of another brewery that:
933	1127		(A) is located in the same county as the brewer's brewery;
934	1128		(B) manufactures less than ninety thousand (90,000) barrels of
935	1129		beer in a calendar year; and
936	1130		(C) is the proprietor of a restaurant that operates under
937	1131		subdivision (5).
938		-	EH 1217—LS 6814/DI 87 22
	1132	+	HB 1217—LS 6814/DI 87 27
939	1133		(7) Provide complimentary samples of beer that are:
940	1134		(A) produced by the brewer; and
941	1135		(B) offered to consumers for consumption on the brewer's
942	1136		premises.
943	1137		(8) Own a portion of the corporate stock of a sports corporation
944	1138		that:
945	1139		(A) manages a minor league baseball stadium located in the
946	1140		same county as the brewer's brewery; and
947	1141		(B) holds a beer retailer's permit, a wine retailer's permit, or a
948	1142		liquor retailer's permit for a restaurant located in that stadium.
949	1143		(9) For beer described in IC 7.1-1-2-3(a)(4):
950	1144		(A) may allow transportation to and consumption of the beer
951	1145		on the licensed premises; and
952	1146		(B) may not sell, offer to sell, or allow sale of the beer on the
953	1147		licensed premises.
954	1148		SECTION 5. IC 7.1-3-2-11 IS ADDED TO THE INDIANA CODE
955	1149		AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
956	1150		1, 2023]: Sec. 11. (a) A finished product of a food manufacturer
957	1151		that contains beer transferred to the food manufacturer under
958	1152		section 7(5)(Q) of this chapter may not contain more than one-half
959	1153		of one percent (0.5%) of alcohol by volume when the product
960	1154		leaves the food manufacturer's facility.
961	1155		(b) Beer that is sold or transferred to a food manufacturer
962	1156		under section 7(5)(Q) of this chapter shall be included within the
963	1157		barrels of beer limits set forth in section 7(5)(A) of this chapter.
964	1158		SECTION 6. IC 7.1-3-12-5, AS AMENDED BY P.L.194-2021,
965	1159		SECTION 42, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
966	1160		JULY 1, 2023]: Sec. 5. (a) The following apply to the holder of a farm
967	1161		winery permit:
968	1162		(1) A holder is entitled to manufacture wine and to place wine
969	1163		produced by the permit holder's farm winery in bottles or other
970	1164		permissible containers.
971	1165		(2) A holder is entitled to serve complimentary samples of the
972	1166		winery's wine on the licensed premises or an outside area that is
973	1167		contiguous to the licensed premises, as approved by the
974	1168		commission if each employee who serves wine on the licensed
975	1169		premises:
976	1170		(A) holds an employee's permit under IC 7.1-3-18-9; and
977	1171		(B) completes a server training program approved by the
978	1172		commission.
979	1173		(3) A holder is entitled to sell the winery's wine on the licensed
980	1174		premises to consumers either by:
981		-	EH 1217—LS 6814/DI 87 23
	1175	+	HB 1217—LS 6814/DI 87 28
982	1176		(A) the glass;
983	1177		(B) the bottle;
984	1178		(C) a box that contains a bag designed for storing and
985	1179		dispensing wine;
986	1180		(D) any combination of receptacles listed in clauses (A)
987	1181		through (C); or
988	1182		(E) any other container permissible under federal law.
989	1183		Notwithstanding IC 7.1-1-3-20, the licensed premises may
990	1184		include the farm winery parking lot or an area adjacent to the farm
991	1185		winery. The parking lot or an adjacent area may only be used for
992	1186		the purpose of conveying alcoholic beverages and other
993	1187		nonalcoholic items to a customer subject to section 5.5 of this
994	1188		chapter, and may not be used for point of sale purposes or any
995	1189		other purpose.
996	1190		(4) A holder is entitled to:
997	1191		(A) serve complimentary samples of the winery's wine; and
998	1192		(B) sell the winery's wine to consumers by the bottle;
999	1193		at a farmers' market that is operated on a nonprofit basis.
1000	1194		(5) A holder is entitled to sell wine by:
1001	1195		(A) the bottle;
1002	1196		(B) the can;
1003	1197		(C) a box that contains a bag designed for storing and
1004	1198		dispensing wine;
1005	1199		(D) bulk container;
1006	1200		(E) the case; or
1007	1201		(F) any combination of receptacles listed in clauses (A)
1008	1202		through (E);
1009	1203		to a person who is the holder of a permit to sell wine at wholesale.
1010	1204		(6) A holder is exempt from the provisions of IC 7.1-3-14.
1011	1205		(7) A holder is entitled to advertise the name and address of any
1012	1206		retailer or dealer who sells wine produced by the permit holder's
1013	1207		winery.
1014	1208		(8) A holder for wine described in IC 7.1-1-2-3(a)(4):
1015	1209		(A) may allow transportation to and consumption of the wine
1016	1210		on the licensed premises; and
1017	1211		(B) may not sell, offer to sell, or allow the sale of the wine on
1018	1212		the licensed premises.
1019	1213		(9) A holder is entitled to purchase and sell bulk wine as set forth
1020	1214		in this chapter.
1021	1215		(10) A holder is entitled to sell wine as authorized by this section
1022	1216		for carryout on Sunday.
1023	1217		(11) A holder is entitled to sell and ship the farm winery's wine to
1024		-	EH 1217—LS 6814/DI 87 24
	1218	+	HB 1217—LS 6814/DI 87 29
1025	1219		a person located in another state in accordance with the laws of
1026	1220		the other state.
1027	1221		(12) A holder is entitled to sell the farm winery's wine to the
1028	1222		holder of a supplemental caterer's permit issued under
1029	1223		IC 7.1-3-9.5 for on-premises consumption only at an event that is
1030	1224		held outdoors on property that is contiguous to the farm winery as
1031	1225		approved by the commission.
1032	1226		(13) A holder is entitled to be the proprietor of a restaurant that is
1033	1227		not subject to the minimum gross food sales or the minimum
1034	1228		projected food sales set forth in 905 IAC 1-41-2 and the gross
1035	1229		retail income requirements to sell carryout under IC 7.1-3-20-9.5.
1036	1230		A holder is entitled to conduct the following activities:
1037	1231		(A) Hold a beer retailer's permit, a wine retailer's permit, or a
1038	1232		liquor retailer's permit for a restaurant.
1039	1233		(B) Transfer wine directly from the farm winery to a restaurant
1040	1234		that the farm winery has an interest in by means of:
1041	1235		(i) bottles or cans;
1042	1236		(ii) bulk containers; or
1043	1237		(iii) a continuous flow system.
1044	1238		(C) Install a window between the farm winery and an adjacent
1045	1239		restaurant that allows the public and the holder of the permit
1046	1240		to view both premises.
1047	1241		(D) Install a doorway or other opening between the farm
1048	1242		winery and an adjacent restaurant that provides the public and
1049	1243		the holder of the permit with access to both the farm winery
1050	1244		and restaurant.
1051	1245		(14) A holder that does not distribute through an Indiana wine
1052	1246		wholesaler is entitled under the farm winery permit to sell and
1053	1247		deliver to a person holding a wine retailer or wine dealer permit
1054	1248		under this title a total of not more than three thousand (3,000)
1055	1249		gallons of the farm winery's wine in a calendar year, if the farm
1056	1250		winery has not sold in Indiana more than fifteen thousand
1057	1251		(15,000) gallons the previous calendar year. A holder that sells
1058	1252		and delivers under this subdivision shall comply with all
1059	1253		provisions applicable to a wholesaler in 905 IAC 1-5.1, 905
1060	1254		IAC 1-5.2, 905 IAC 1-21, 905 IAC 1-31, and 905 IAC 1-32.1.
1061	1255		(15) A holder must annually submit to the commission copies of
1062	1256		its Indiana and federal excise tax returns.
1063	1257		(b) With the approval of the commission, a holder of a permit under
1064	1258		this chapter may conduct business at not more than three (3) additional
1065	1259		locations that are separate from the winery. At the additional locations,
1066	1260		the holder of a permit may conduct any business that is authorized at
1067		-	EH 1217—LS 6814/DI 87 25
	1261	+	HB 1217—LS 6814/DI 87 30
1068	1262		the first location, except for manufacturing wine or placing wine in
1069	1263		bottles or containers.
1070	1264		(c) A farm winery may transfer wine from a storage facility or an
1071	1265		additional location described in subsection (b). A farm winery may sell
1072	1266		or transfer wine directly to a wine wholesaler from a storage facility
1073	1267		separate from the farm winery or an additional location described in
1074	1268		subsection (b). A farm winery may not sell or transfer wine from a
1075	1269		storage facility to any other permittee or a consumer. The farm winery
1076	1270		shall maintain an adequate written record of wine transferred:
1077	1271		(1) between the farm winery and the storage facility; and
1078	1272		(2) from the storage facility to the wholesaler.
1079	1273		(d) With the approval of the commission, a holder of a permit under
1080	1274		this chapter may:
1081	1275		(1) individually; or
1082	1276		(2) with other permit holders under this chapter, holders of artisan
1083	1277		distiller's permits, holders of brewer's permits issued under
1084	1278		IC 7.1-3-2-2(b), or any combination of holders described in this
1085	1279		subdivision;
1086	1280		participate in a trade show or an exposition at which products of each
1087	1281		permit holder participant are displayed, promoted, and sold. All of the
1088	1282		permit holders may occupy the same tent, structure, or building. The
1089	1283		commission may not grant approval under this subsection to a holder
1090	1284		of a permit under this chapter for more than forty-five (45) days in a
1091	1285		calendar year.
1092	1286		SECTION 7. IC 7.1-3-18-9, AS AMENDED BY P.L.196-2015,
1093	1287		SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
1094	1288		JULY 1, 2023]: Sec. 9. (a) The commission may issue an employee's
1095	1289		permit to a person who desires to act as:
1096	1290		(1) a clerk in a package liquor store;
1097	1291		(2) an employee who serves wine at a farm winery; or
1098	1292		(3) a bartender, waiter, waitress, or manager in a retail
1099	1293		establishment, excepting dining car and boat employees; or
1100	1294		(4) a salon employee who serves beer or wine at a salon under
1101	1295		IC 7.1-3-1-31.
1102	1296		(b) A permit authorized by this section is conditioned upon the
1103	1297		compliance by the holder with reasonable rules relating to the permit
1104	1298		which the commission may prescribe from time to time.
1105	1299		(c) A permit issued under this section entitles its holder to work for
1106	1300		any lawful employer. However, a person may work without an
1107	1301		employee's permit for thirty (30) days from the date shown on a receipt
1108	1302		for a cashier's check or money order payable to the commission for that
1109	1303		person's employee's permit application.
1110		-	EH 1217—LS 6814/DI 87 26
	1304	+	HB 1217—LS 6814/DI 87 31
1111	1305		(d) A person who, for a package liquor store or retail establishment,
1112	1306		is:
1113	1307		(1) the sole proprietor;
1114	1308		(2) a partner, a general partner, or a limited partner in a
1115	1309		partnership or limited partnership that owns the business
1116	1310		establishment;
1117	1311		(3) a member of a limited liability company that owns the
1118	1312		business establishment; or
1119	1313		(4) a stockholder in a corporation that owns the business
1120	1314		establishment;
1121	1315		is not required to obtain an employee's permit in order to perform any
1122	1316		of the acts listed in subsection (a).
1123	1317		(e) An applicant may declare on the application form that the
1124	1318		applicant will use the employee's permit only to perform volunteer
1125	1319		service that benefits a nonprofit organization. It is unlawful for an
1126	1320		applicant who makes a declaration under this subsection to use an
1127	1321		employee's permit for any purpose other than to perform volunteer
1128	1322		service that benefits a nonprofit organization.
1129	1323		(f) The commission may not issue an employee's permit to an
1130	1324		applicant while the applicant is serving a sentence for a conviction for
1131	1325		operating while intoxicated, including any term of probation or parole.
1132	1326		(g) The commission may not issue an employee's permit to an
1133	1327		applicant who has two (2) unrelated convictions for operating while
1134	1328		intoxicated if:
1135	1329		(1) the first conviction occurred less than ten (10) years before the
1136	1330		date of the applicant's application for the permit; and
1137	1331		(2) the applicant completed the sentence for the second
1138	1332		conviction, including any term of probation or parole, less than
1139	1333		two (2) years before the date of the applicant's application for the
1140	1334		permit.
1141	1335		(h) If an applicant for an employee's permit has at least three (3)
1142	1336		unrelated convictions for operating while intoxicated in the ten (10)
1143	1337		years immediately preceding the date of the applicant's application for
1144	1338		the permit, the commission may not grant the issuance of the permit.
1145	1339		If, in the ten (10) years immediately preceding the date of the
1146	1340		applicant's application the applicant has:
1147	1341		(1) one (1) conviction for operating while intoxicated, and the
1148	1342		applicant is not subject to subsection (f); or
1149	1343		(2) two (2) unrelated convictions for operating while intoxicated,
1150	1344		and the applicant is not subject to subsection (f) or (g);
1151	1345		the commission may grant or deny the issuance of a permit.
1152	1346		(i) Except as provided under section 9.5 of this chapter, the
1153		-	EH 1217—LS 6814/DI 87 27
	1347	+	HB 1217—LS 6814/DI 87 32
1154	1348		commission shall revoke a permit issued to an employee under this
1155	1349		section if:
1156	1350		(1) the employee is convicted of a Class B misdemeanor for
1157	1351		violating IC 7.1-5-10-15(a); or
1158	1352		(2) the employee is convicted of operating while intoxicated after
1159	1353		the issuance of the permit.
1160	1354		The commission may revoke a permit issued to an employee under this
1161	1355		section for any violation of this title or the rules adopted by the
1162	1356		commission.
1163	1357		SECTION 8. IC 7.1-3-20-16, AS AMENDED BY P.L.104-2022,
1164	1358		SECTION 57, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
1165	1359		JULY 1, 2023]: Sec. 16. (a) A permit that is authorized by this section
1166	1360		may be issued without regard to the quota provisions of IC 7.1-3-22.
1167	1361		(b) The commission may issue a three-way permit to sell alcoholic
1168	1362		beverages for on-premises consumption only to an applicant who is the
1169	1363		proprietor, as owner or lessee, or both, of a restaurant facility in the
1170	1364		passenger terminal complex of a publicly owned airport. A permit
1171	1365		issued under this subsection shall not be transferred to a location off
1172	1366		the airport premises.
1173	1367		(c) Except as provided in sections 16.3 and 16.4 of this chapter, the
1174	1368		commission may issue a three-way, two-way, or one-way permit to sell
1175	1369		alcoholic beverages for on-premises consumption only to an applicant
1176	1370		who is the proprietor, as owner or lessee, or both, of a restaurant within
1177	1371		a redevelopment project consisting of a building or group of buildings
1178	1372		that:
1179	1373		(1) was formerly used as part of a union railway station;
1180	1374		(2) has been listed in or is within a district that has been listed in
1181	1375		the federal National Register of Historic Places maintained
1182	1376		pursuant to the National Historic Preservation Act of 1966, as
1183	1377		amended; and
1184	1378		(3) has been redeveloped or renovated, with the redevelopment or
1185	1379		renovation being funded in part with grants from the federal,
1186	1380		state, or local government.
1187	1381		A permit issued under this subsection shall not be transferred to a
1188	1382		location outside of the redevelopment project.
1189	1383		(d) Subject to section 16.1 of this chapter and except as provided in
1190	1384		section 16.3 of this chapter, the commission may issue a three-way,
1191	1385		two-way, or one-way permit to sell alcoholic beverages for on-premises
1192	1386		consumption only to an applicant who is the proprietor, as owner or
1193	1387		lessee, or both, of a restaurant:
1194	1388		(1) on land; or
1195	1389		(2) in a historic river vessel;
1196		-	EH 1217—LS 6814/DI 87 28
	1390	+	HB 1217—LS 6814/DI 87 33
1197	1391		within a municipal riverfront development project funded in part with
1198	1392		state and city money. The ownership of a permit issued under this
1199	1393		subsection and the location for which the permit was issued may not be
1200	1394		transferred. The legislative body of the municipality in which the
1201	1395		municipal riverfront development project is located shall recommend
1202	1396		to the commission sites that are eligible to be permit premises. The
1203	1397		commission shall consider, but is not required to follow, the municipal
1204	1398		legislative body's recommendation in issuing a permit under this
1205	1399		subsection. A permit holder and any lessee or proprietor of the permit
1206	1400		premises are subject to the formal written commitment required under
1207	1401		IC 7.1-3-19-17. Notwithstanding IC 7.1-3-1-3.5 and IC 7.1-3-1.1, if
1208	1402		business operations cease at the permit premises for more than six (6)
1209	1403		months, the permit shall revert to the commission. The permit holder
1210	1404		is not entitled to any refund or other compensation.
1211	1405		(e) Except as provided in sections 16.3 and 16.4 of this chapter, the
1212	1406		commission may issue a three-way, two-way, or one-way permit to sell
1213	1407		alcoholic beverages for on-premises consumption only to an applicant
1214	1408		who is the proprietor, as owner or lessee, or both, of a restaurant within
1215	1409		a renovation project consisting of:
1216	1410		(1) a building that:
1217	1411		(A) was formerly used as part of a passenger and freight
1218	1412		railway station; and
1219	1413		(B) was built before 1900; or
1220	1414		(2) a complex of buildings that:
1221	1415		(A) is part of an economic development area established under
1222	1416		IC 36-7-14; and
1223	1417		(B) includes, as part of the renovation project, the use and
1224	1418		repurposing of two (2) or more buildings and structures that
1225	1419		are:
1226	1420		(i) at least seventy-five (75) years old; and
1227	1421		(ii) located at a site at which manufacturing previously
1228	1422		occurred over a period of at least seventy-five (75) years.
1229	1423		The permit authorized by this subsection may be issued without regard
1230	1424		to the proximity provisions of IC 7.1-3-21-11.
1231	1425		(f) Except as provided in section 16.3 of this chapter, the
1232	1426		commission may issue a three-way permit for the sale of alcoholic
1233	1427		beverages for on-premises consumption at a cultural center for the
1234	1428		visual and performing arts to the following:
1235	1429		(1) A town having a population of more than twenty-three
1236	1430		thousand (23,000) and less than twenty-three thousand nine
1237	1431		hundred (23,900) located in a county having a population of more
1238	1432		than four hundred thousand (400,000) and less than seven
1239		-	EH 1217—LS 6814/DI 87 29
	1433	+	HB 1217—LS 6814/DI 87 34
1240	1434		hundred thousand (700,000).
1241	1435		(2) A city that has an indoor theater as described in section 26 of
1242	1436		this chapter.
1243	1437		(g) Except as provided in section 16.3 of this chapter, the
1244	1438		commission may issue not more than ten (10) fifteen (15) new
1245	1439		three-way, two-way, or one-way permits to sell alcoholic beverages for
1246	1440		on-premises consumption to applicants, each of whom must be the
1247	1441		proprietor, as owner or lessee, or both, of a restaurant located within a
1248	1442		district, or not more than seven hundred (700) one thousand five
1249	1443		hundred (1,500) feet from a district, that meets the following
1250	1444		requirements:
1251	1445		(1) The district has been listed in the National Register of Historic
1252	1446		Places maintained under the National Historic Preservation Act
1253	1447		of 1966, as amended.
1254	1448		(2) A county courthouse is located within the district.
1255	1449		(3) A historic opera house listed on the National Register of
1256	1450		Historic Places is located within the district.
1257	1451		(4) A historic jail and sheriff's house listed on the National
1258	1452		Register of Historic Places is located within the district.
1259	1453		The legislative body of the municipality in which the district is located
1260	1454		shall recommend to the commission sites that are eligible to be permit
1261	1455		premises. The commission shall consider, but is not required to follow,
1262	1456		the municipal legislative body's recommendation in issuing a permit
1263	1457		under this subsection. An applicant is not eligible for a permit if, less
1264	1458		than two (2) years before the date of the application, the applicant sold
1265	1459		a retailer's permit that was subject to IC 7.1-3-22 and that was for
1266	1460		premises located within the district described in this section or within
1267	1461		seven hundred (700) one thousand five hundred (1,500) feet of the
1268	1462		district. The ownership of a permit issued under this subsection and the
1269	1463		location for which the permit was issued shall not be transferred. A
1270	1464		permit holder and any lessee or proprietor of the permit premises is
1271	1465		subject to the formal written commitment required under
1272	1466		IC 7.1-3-19-17. Notwithstanding IC 7.1-3-1-3.5 and IC 7.1-3-1.1, if
1273	1467		business operations cease at the permit premises for more than six (6)
1274	1468		months, the permit shall revert to the commission. The permit holder
1275	1469		is not entitled to any refund or other compensation. The total number
1276	1470		of active permits issued under this subsection may not exceed ten (10)
1277	1471		fifteen (15) at any time. The cost of an initial permit issued under this
1278	1472		subsection is six thousand dollars ($6,000). twenty-five thousand
1279	1473		dollars ($25,000).
1280	1474		(h) Except as provided in section 16.3 of this chapter, the
1281	1475		commission may issue a three-way permit for the sale of alcoholic
1282		-	EH 1217—LS 6814/DI 87 30
	1476	+	HB 1217—LS 6814/DI 87 35
1283	1477		beverages for on-premises consumption to an applicant who will locate
1284	1478		as the proprietor, as owner or lessee, or both, of a restaurant within an
1285	1479		economic development area under IC 36-7-14 in:
1286	1480		(1) a town having a population of more than twenty thousand
1287	1481		(20,000); or
1288	1482		(2) a city having a population of more than forty-nine thousand
1289	1483		four hundred (49,400) and less than fifty thousand (50,000);
1290	1484		located in a county having a population of more than one hundred
1291	1485		twenty thousand (120,000) and less than one hundred thirty thousand
1292	1486		(130,000). The commission may issue not more than five (5) licenses
1293	1487		under this section to premises within a municipality described in
1294	1488		subdivision (1) and not more than five (5) licenses to premises within
1295	1489		a municipality described in subdivision (2). The commission shall
1296	1490		conduct an auction of the permits under IC 7.1-3-22-9, except that the
1297	1491		auction may be conducted at any time as determined by the
1298	1492		commission. Notwithstanding any other law, the minimum bid for an
1299	1493		initial license under this subsection is thirty-five thousand dollars
1300	1494		($35,000), and the renewal fee for a license under this subsection is one
1301	1495		thousand three hundred fifty dollars ($1,350). Before the district
1302	1496		expires, a permit issued under this subsection may not be transferred.
1303	1497		After the district expires, a permit issued under this subsection may be
1304	1498		renewed, and the ownership of the permit may be transferred, but the
1305	1499		permit may not be transferred from the permit premises.
1306	1500		(i) After June 30, 2006, and except as provided in section 16.3 of
1307	1501		this chapter, the commission may issue not more than five (5) new
1308	1502		three-way, two-way, or one-way permits to sell alcoholic beverages for
1309	1503		on-premises consumption to applicants, each of whom must be the
1310	1504		proprietor, as owner or lessee, or both, of a restaurant located within a
1311	1505		district, or not more than five hundred (500) feet from a district, that
1312	1506		meets all of the following requirements:
1313	1507		(1) The district is within an economic development area, an area
1314	1508		needing redevelopment, or a redevelopment district as established
1315	1509		under IC 36-7-14.
1316	1510		(2) A unit of the National Park Service is partially located within
1317	1511		the district.
1318	1512		(3) An international deep water seaport is located within the
1319	1513		district.
1320	1514		An applicant is not eligible for a permit under this subsection if, less
1321	1515		than two (2) years before the date of the application, the applicant sold
1322	1516		a retailers' permit that was subject to IC 7.1-3-22 and that was for
1323	1517		premises located within the district described in this subsection or
1324	1518		within five hundred (500) feet of the district. A permit issued under this
1325		-	EH 1217—LS 6814/DI 87 31
	1519	+	HB 1217—LS 6814/DI 87 36
1326	1520		subsection may not be transferred. If the commission issues five (5)
1327	1521		new permits under this subsection, and a permit issued under this
1328	1522		subsection is later revoked or is not renewed, the commission may
1329	1523		issue another new permit, as long as the total number of active permits
1330	1524		issued under this subsection does not exceed five (5) at any time. The
1331	1525		commission shall conduct an auction of the permits under
1332	1526		IC 7.1-3-22-9, except that the auction may be conducted at any time as
1333	1527		determined by the commission.
1334	1528		(j) Subject to section 16.2 of this chapter and except as provided in
1335	1529		section 16.3 of this chapter, the commission may issue not more than
1336	1530		six (6) new three-way, two-way, or one-way permits to sell alcoholic
1337	1531		beverages for on-premises consumption only to an applicant who is the
1338	1532		proprietor, as owner or lessee, or both, of a restaurant on land within a
1339	1533		municipal lakefront development project. A permit issued under this
1340	1534		subsection may not be transferred. If the commission issues six (6) new
1341	1535		permits under this subsection, and a permit issued under this subsection
1342	1536		is later revoked or is not renewed, the commission may issue another
1343	1537		new permit, as long as the total number of active permits issued under
1344	1538		this subsection does not exceed six (6) at any time. The commission
1345	1539		shall conduct an auction of the permits under IC 7.1-3-22-9, except that
1346	1540		the auction may be conducted at any time as determined by the
1347	1541		commission. Notwithstanding any other law, the minimum bid for an
1348	1542		initial permit under this subsection is ten thousand dollars ($10,000).
1349	1543		(k) Except as provided in section 16.3 of this chapter, the
1350	1544		commission may issue not more than nine (9) new three-way permits
1351	1545		to sell alcoholic beverages for on-premises consumption to applicants,
1352	1546		each of whom must be a proprietor, as owner or lessee, or both, of a
1353	1547		restaurant located:
1354	1548		(1) within a motorsports investment district (as defined in
1355	1549		IC 5-1-17.5-11); or
1356	1550		(2) not more than one thousand five hundred (1,500) feet from a
1357	1551		motorsports investment district.
1358	1552		The ownership of a permit issued under this subsection and the location
1359	1553		for which the permit was issued shall not be transferred. If the
1360	1554		commission issues nine (9) new permits under this subsection, and a
1361	1555		permit issued under this subsection is later revoked or is not renewed,
1362	1556		the commission may issue another new permit, as long as the total
1363	1557		number of active permits issued under this subsection does not exceed
1364	1558		nine (9) at any time. A permit holder and any lessee or proprietor of the
1365	1559		permit premises are subject to the formal written commitment required
1366	1560		under IC 7.1-3-19-17. Notwithstanding IC 7.1-3-1-3.5 and IC 7.1-3-1.1,
1367	1561		if business operations cease at the permit premises for more than six
1368		-	EH 1217—LS 6814/DI 87 32
	1562	+	HB 1217—LS 6814/DI 87 37
1369	1563		(6) months, the permit shall revert to the commission. The permit
1370	1564		holder is not entitled to any refund or other compensation.
1371	1565		(l) Except as provided in section 16.3 of this chapter, the
1372	1566		commission may issue not more than two (2) new three-way permits to
1373	1567		sell alcoholic beverages for on-premises consumption for premises
1374	1568		located within a qualified motorsports facility (as defined in
1375	1569		IC 5-1-17.5-14). The ownership of a permit issued under this
1376	1570		subsection and the location for which the permit was issued shall not
1377	1571		be transferred. If the commission issues two (2) new permits under this
1378	1572		subsection, and a permit issued under this subsection is later revoked
1379	1573		or is not renewed, the commission may issue another new permit, as
1380	1574		long as the total number of active permits issued under this subsection
1381	1575		does not exceed two (2) at any time. A permit holder and any lessee or
1382	1576		proprietor of the permit premises are subject to the formal written
1383	1577		commitment required under IC 7.1-3-19-17. Notwithstanding
1384	1578		IC 7.1-3-1-3.5 and IC 7.1-3-1.1, if business operations cease at the
1385	1579		permit premises for more than six (6) months, the permit shall revert
1386	1580		to the commission. The permit holder is not entitled to any refund or
1387	1581		other compensation.
1388	1582		SECTION 9. IC 7.1-3-27-3, AS AMENDED BY P.L.159-2014,
1389	1583		SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
1390	1584		JULY 1, 2023]: Sec. 3. (a) An artisan distiller may produce not more
1391	1585		than ten twenty thousand (10,000) (20,000) gallons of liquor in any
1392	1586		calendar year. Liquor produced by an artisan distiller that is sold
1393	1587		through a wholesaler licensed under IC 7.1-3-8 may not be counted
1394	1588		toward the gallonage limit.
1395	1589		(b) An artisan distiller who knowingly or intentionally violates this
1396	1590		section commits a Class B misdemeanor.
1397	1591		SECTION 10. IC 7.1-3-27-8, AS AMENDED BY P.L.194-2021,
1398	1592		SECTION 59, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
1399	1593		JULY 1, 2023]: Sec. 8. (a) The holder of an artisan distiller's permit
1400	1594		may do only the following:
1401	1595		(1) Manufacture liquor, including blending using liquor
1402	1596		purchased from another manufacturer with liquor the artisan
1403	1597		distiller manufactures under section 11 of this chapter.
1404	1598		(2) Bottle liquor manufactured by the artisan distiller.
1405	1599		(3) Insert liquor manufactured by the artisan distiller into a
1406	1600		container.
1407	1601		(4) Store liquor manufactured by the artisan distiller, including at
1408	1602		a facility located within ten (10) miles of the artisan distiller's
1409	1603		distillery.
1410	1604		(5) Transport, sell, and deliver liquor manufactured by the artisan
1411		-	EH 1217—LS 6814/DI 87 33
	1605	+	HB 1217—LS 6814/DI 87 38
1412	1606		distiller to:
1413	1607		(A) places outside Indiana; or
1414	1608		(B) the holder of a liquor wholesaler's permit under IC 7.1-3-8.
1415	1609		(6) Sell liquor manufactured by the artisan distiller to consumers
1416	1610		by the drink, bottle, container, or case from the licensed premises
1417	1611		of the distillery where the liquor was manufactured.
1418	1612		Notwithstanding IC 7.1-1-3-20, the licensed premises may
1419	1613		include the distillery parking lot or an area adjacent to the artisan
1420	1614		distillery. The parking lot or adjacent area may only be used for
1421	1615		the purpose of conveying alcoholic beverages and other
1422	1616		nonalcoholic items to a customer subject to section 8.1 of this
1423	1617		chapter and may not be used for point of sale purposes or any
1424	1618		other purpose.
1425	1619		(7) Serve complimentary samples of the liquor manufactured by
1426	1620		the artisan distiller to consumers on the premises of the distillery
1427	1621		where the liquor was manufactured.
1428	1622		(8) Sell liquor as authorized by this section for carryout on
1429	1623		Sunday in a quantity at any one (1) time of not more than four and
1430	1624		five-tenths (4.5) liters.
1431	1625		(9) With the approval of the commission, participate:
1432	1626		(A) individually; or
1433	1627		(B) with other permit holders under this chapter, holders of
1434	1628		farm winery permits, holders of brewer's permits issued under
1435	1629		IC 7.1-3-2-2(b), or any combination of holders described in
1436	1630		this clause;
1437	1631		in a trade show or an exposition at which products of each permit
1438	1632		holder participant are displayed, promoted, and sold. All of the
1439	1633		permit holders may occupy the same tent, structure, or building.
1440	1634		The commission may not grant to a holder of a permit under this
1441	1635		chapter approval under this subdivision to participate in a trade
1442	1636		show or exposition for more than forty-five (45) days in a
1443	1637		calendar year.
1444	1638		(10) Be the proprietor of a restaurant that is not subject to the
1445	1639		minimum gross food sales or the minimum projected food sales
1446	1640		set forth in 905 IAC 1-41-2 and the gross retail income
1447	1641		requirements to sell carryout under IC 7.1-3-20-9.5. A holder is
1448	1642		entitled to conduct the following activities:
1449	1643		(A) Hold a beer retailer's permit, a wine retailer's permit, or a
1450	1644		liquor retailer's permit for a restaurant.
1451	1645		(B) Transfer liquor directly from the artisan distillery to a
1452	1646		restaurant that the artisan distiller has an interest in by means
1453	1647		of:
1454		-	EH 1217—LS 6814/DI 87 34
	1648	+	HB 1217—LS 6814/DI 87 39
1455	1649		(i) bottles;
1456	1650		(ii) bulk containers; or
1457	1651		(iii) a continuous flow system.
1458	1652		(C) Install a window between the artisan distillery and an
1459	1653		adjacent restaurant that allows the public and the holder of the
1460	1654		permit to view both premises.
1461	1655		(D) Install a doorway or other opening between the artisan
1462	1656		distillery and an adjacent restaurant that provides the public
1463	1657		and the holder of the permit with access to both the artisan
1464	1658		distillery and restaurant.
1465	1659		(11) A holder that does not distribute through an Indiana liquor
1466	1660		wholesaler is entitled under the artisan distiller's permit to sell and
1467	1661		deliver to a person holding a liquor retailer or liquor dealer permit
1468	1662		under this title a total of not more than one thousand (1,000)
1469	1663		gallons of the artisan distillery's liquor in a calendar year, if the
1470	1664		artisan distiller has not sold in Indiana more than nine thousand
1471	1665		(9,000) gallons the previous calendar year. A holder that sells and
1472	1666		delivers under this subdivision shall comply with all provisions
1473	1667		applicable to a wholesaler in 905 IAC 1-5.1, 905 IAC 1-5.2, 905
1474	1668		IAC 1-21, 905 IAC 1-31, and 905 IAC 1-32.1.
1475	1669		(12) A holder must annually submit to the commission copies of
1476	1670		its Indiana and federal excise tax returns.
1477	1671		(b) The holder of an artisan distiller's permit who provides samples
1478	1672		or sells liquor by the glass must furnish the minimum food
1479	1673		requirements prescribed by the commission.
1480	1674		(c) A storage facility used by an artisan distiller under subsection
1481	1675		(a)(4) must conform with federal laws, rules, and regulations. An
1482	1676		artisan distiller may transfer liquor from a separate storage facility back
1483	1677		to the artisan distillery. An artisan distiller may sell or transfer liquor
1484	1678		directly to a liquor wholesaler from a storage facility that is separate
1485	1679		from the artisan distillery. An artisan distiller may not sell or transfer
1486	1680		liquor from a storage facility to any other permittee or a consumer. The
1487	1681		artisan distiller shall maintain an adequate written record of the liquor
1488	1682		transferred:
1489	1683		(1) between the artisan distillery and the storage facility; and
1490	1684		(2) from the storage facility to the liquor wholesaler.
1491	1685		(d) The holder of an artisan distiller's permit may transport liquor to
1492	1686		and from a brewery located within the same county for the purposes of
1493	1687		carbonating and canning by the brewery. The activity under this
1494	1688		subsection is not an interest under IC 7.1-5-9.
1495	1689		(e) An artisan distiller who knowingly or intentionally violates this
1496	1690		section commits a Class B misdemeanor.
1497		-	EH 1217—LS 6814/DI 87 35
	1691	+	HB 1217—LS 6814/DI 87 40
1498	1692		SECTION 11. IC 7.1-3-27-11, AS AMENDED BY P.L.159-2014,
1499	1693		SECTION 13, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
1500	1694		JULY 1, 2023]: Sec. 11. (a) An artisan distiller may obtain and use
1501	1695		blend liquor that the artisan distiller obtains from another manufacturer
1502	1696		with liquor that the artisan distiller manufactures. The artisan distiller
1503	1697		may sell the blended liquor as liquor that the artisan distiller
1504	1698		manufactures only if the final product contains at least sixty percent
1505	1699		(60%) of liquor that was fermented and distilled from raw materials by
1506	1700		the artisan distiller at the licensed premises of the artisan distiller. in
1507	1701		the manner permitted by this section.
1508	1702		(b) Subject to subsection (c), an artisan distiller may use in a
1509	1703		calendar year not more than ten thousand (10,000) gallons of
1510	1704		liquor that the artisan distiller obtains from another manufacturer.
1511	1705		(c) The number of gallons of liquor that the artisan distiller
1512	1706		obtains and uses from another manufacturer in a calendar year
1513	1707		may not exceed the number of gallons of liquor that the artisan
1514	1708		distiller fermented and distilled from raw materials at the licensed
1515	1709		premises of the artisan distiller in the same calendar year.
1516	1710		(b) (d) An artisan distiller who knowingly or intentionally sells
1517	1711		blended liquor that contains less than sixty percent (60%) of liquor that
1518	1712		was fermented and distilled from raw materials by the artisan distiller
1519	1713		at the licensed premises of the artisan distiller violates subsection (b)
1520	1714		or (c), as applicable, commits a Class B misdemeanor.
1521	1715		SECTION 12. IC 7.1-5-3-1, AS AMENDED BY P.L.79-2015,
1522	1716		SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
1523	1717		JULY 1, 2023]: Sec. 1. (a) This section does not apply to the following:
1524	1718		(1) An establishment where alcoholic beverages are sold that is
1525	1719		owned, in whole or part, by an entity that holds a brewer's permit
1526	1720		issued under IC 7.1-3-2-2(b).
1527	1721		(2) An establishment where alcoholic beverages are sold that is
1528	1722		owned, in whole or part, by a statewide trade organization
1529	1723		consisting of members, each of whom holds a brewer's permit
1530	1724		issued under IC 7.1-3-2-2(b).
1531	1725		(3) Beer that is bottled and packaged under IC 7.1-3-2-7(5)(P).
1532	1726		(b) Except as provided in section 6 of this chapter, it is unlawful to
1533	1727		sell beer in this state at retail in a bottle, can, or other container, unless
1534	1728		the bottle, can, or other container was packaged and sealed by the
1535	1729		brewer at the brewer's bottling house contiguous or adjacent to the
1536	1730		brewery in which the beer was produced.
1537	1731		(c) A person who knowingly or intentionally violates subsection (b)
1538	1732		commits a Class B misdemeanor.
1539	1733		SECTION 13. IC 7.1-5-7-11, AS AMENDED BY P.L.105-2022,
1540		-	EH 1217—LS 6814/DI 87 36
	1734	+	HB 1217—LS 6814/DI 87 41
1541	1735		SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
1542	1736		JULY 1, 2023]: Sec. 11. (a) The provisions of sections 9 and 10 of this
1543	1737		chapter shall not apply if the public place involved is one (1) of the
1544	1738		following:
1545	1739		(1) Civic center.
1546	1740		(2) Convention center.
1547	1741		(3) Sports arena.
1548	1742		(4) Bowling center.
1549	1743		(5) Bona fide club.
1550	1744		(6) Drug store.
1551	1745		(7) Grocery store.
1552	1746		(8) Boat.
1553	1747		(9) Dining car.
1554	1748		(10) Pullman car.
1555	1749		(11) Club car.
1556	1750		(12) Passenger airplane.
1557	1751		(13) Horse racetrack facility holding a recognized meeting permit
1558	1752		under IC 4-31-5.
1559	1753		(14) Satellite facility (as defined in IC 4-31-2.1-36).
1560	1754		(15) Catering hall under IC 7.1-3-20-24 that is not open to the
1561	1755		public.
1562	1756		(16) That part of a restaurant which is separate from a room in
1563	1757		which is located a bar over which alcoholic beverages are sold or
1564	1758		dispensed by the drink.
1565	1759		(17) Entertainment complex.
1566	1760		(18) Indoor golf facility.
1567	1761		(19) A recreational facility such as a golf course, bowling center,
1568	1762		or similar facility that has the recreational activity and not the sale
1569	1763		of food and beverages as the principal purpose or function of the
1570	1764		person's business.
1571	1765		(20) A licensed premises owned or operated by a postsecondary
1572	1766		educational institution described in IC 21-17-6-1.
1573	1767		(21) An automobile racetrack.
1574	1768		(22) An indoor theater under IC 7.1-3-20-26.
1575	1769		(23) A senior residence facility campus (as defined in
1576	1770		IC 7.1-3-1-29(c)) at which alcoholic beverages are given or
1577	1771		furnished as provided under IC 7.1-3-1-29.
1578	1772		(24) A hotel other than a part of a hotel that is a room in a
1579	1773		restaurant in which a bar is located over which alcoholic
1580	1774		beverages are sold or dispensed by the drink.
1581	1775		(25) The location of an allowable event to which IC 7.1-3-6.1
1582	1776		applies.
1583		-	EH 1217—LS 6814/DI 87 37
	1777	+	HB 1217—LS 6814/DI 87 42
1584	1778		(26) The location of a charity auction to which IC 7.1-3-6.2
1585	1779		applies.
1586	1780		(27) A tour of a brewery as provided in IC 7.1-3-20-16.4, if the
1587	1781		minor is in the company of a parent, legal guardian or custodian,
1588	1782		or family member who is at least twenty-one (21) years of age.
1589	1783		(28) A farm winery and any additional locations of the farm
1590	1784		winery under IC 7.1-3-12, if the minor is in the company of a
1591	1785		parent, legal guardian or custodian, or family member who is at
1592	1786		least twenty-one (21) years of age and the minor is accompanied
1593	1787		by the adult in any area that the adult may be present whether or
1594	1788		not the area:
1595	1789		(A) is separated in any manner from where the wine is
1596	1790		manufactured, sold, or consumed within the farm winery
1597	1791		premises; or
1598	1792		(B) operates under a retailer's permit.
1599	1793		(29) An artisan distillery under IC 7.1-3-27, if:
1600	1794		(A) the person who holds the artisan distiller's permit also
1601	1795		holds a farm winery permit under IC 7.1-3-12, or
1602	1796		IC 7.1-3-20-16.4(a) applies to the person; and
1603	1797		(B) the minor is in the company of a parent, legal guardian or
1604	1798		custodian, or family member who is at least twenty-one (21)
1605	1799		years of age.
1606	1800		(30) An art instruction studio under IC 7.1-5-8-4.6.
1607	1801		(31) The licensed premises of a food hall under IC 7.1-3-20-29
1608	1802		and the food and beverage vending space of a food hall vendor
1609	1803		permittee under IC 7.1-3-20-30. However, sections 9 and 10 of
1610	1804		this chapter apply to a bar within the food and beverage vending
1611	1805		space of a food hall vendor permittee under IC 7.1-3-20-30 that
1612	1806		serves alcoholic beverages intended to be consumed while sitting
1613	1807		or standing at the bar.
1614	1808		(32) A beauty culture salon licensed under IC 25-8-7 at which
1615	1809		wine and beer are given or furnished as provided under
1616	1810		IC 7.1-3-1-31.
1617	1811		(b) For the purpose of this subsection, "food" means meals prepared
1618	1812		on the licensed premises. It is lawful for a minor to be on licensed
1619	1813		premises in a room in which is located a bar over which alcoholic
1620	1814		beverages are sold or dispensed by the drink if all the following
1621	1815		conditions are met:
1622	1816		(1) The minor is eighteen (18) years of age or older.
1623	1817		(2) The minor is in the company of a parent, guardian, or family
1624	1818		member who is twenty-one (21) years of age or older.
1625	1819		(3) The purpose for being on the licensed premises is the
1626		-	EH 1217—LS 6814/DI 87 38
	1820	+	HB 1217—LS 6814/DI 87 43
1627	1821		consumption of food and not the consumption of alcoholic
1628	1822		beverages.".
1629	1823		Renumber all SECTIONS consecutively.
1630	1824		and when so amended that said bill do pass.
1631	1825		(Reference is to HB 1217 as introduced.)
1632	1826		MANNING
1633	1827		Committee Vote: yeas 13, nays 0.
1634		-	_____
1635		-	COMMITTEE REPORT
1636		-	Madam President: The Senate Committee on Public Policy, to which
1637		-	was referred House Bill No. 1217, has had the same under
1638		-	consideration and begs leave to report the same back to the Senate with
1639		-	the recommendation that said bill be AMENDED as follows:
1640		-	Page 3, line 12, after "(4)" delete "Notwithstanding any other
1641		-	provision of this title, a" and insert "A".
1642		-	Page 3, line 13, after "supply" insert ", manufacturer,".
1643		-	Page 3, line 13, delete "allow a permittee" and insert "supply
1644		-	equipment on a temporary and nondiscriminatory basis to the
1645		-	holder of a retailer permit or a temporary permit for the purpose
1646		-	of holding, storing, and dispensing product to consumers for a
1647		-	special event for the duration of the special event. Ownership of the
1648		-	equipment shall remain with the primary source of supply,
1649		-	manufacturer, or wholesaler.".
1650		-	Page 3, delete lines 14 through 32.
1651		-	Page 4, line 1, after "breweries" insert ",".
1652		-	Page 4, line 2, strike "located in Indiana,".
1653		-	Page 6, line 13, delete "holder." and insert "holder who
1654		-	manufactured the beer.".
1655		-	Page 6, line 14, delete "gallons" and insert "barrels".
1656		-	Page 6, line 16, delete "gallons" and insert "barrels".
1657		-	Page 7, delete lines 17 through 42.
1658		-	Delete pages 8 through 11.
1659		-	Page 17, between lines 10 and 11, begin a new paragraph and insert:
1660		-	"SECTION 6. IC 7.1-3-20-16.8, AS AMENDED BY P.L.285-2019,
1661		-	SECTION 36, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
1662		-	JULY 1, 2023]: Sec. 16.8. (a) A permit that is authorized by this
1663		-	EH 1217—LS 6814/DI 87 39
1664		-	section may be issued without regard to the quota provisions of
1665		-	IC 7.1-3-22.
1666		-	(b) Except as provided in section 16.3 of this chapter, the
1667		-	commission may issue not more than four (4) new three-way permits
1668		-	to sell alcoholic beverages for on-premises consumption to applicants
1669		-	in each of the following municipalities:
1670		-	(1) Whitestown.
1671		-	(2) (1) Lebanon.
1672		-	(3) (2) Zionsville.
1673		-	(4) (3) Westfield.
1674		-	(5) (4) Carmel.
1675		-	(6) (5) Fishers.
1676		-	(c) The following apply to permits issued under this section
1677		-	subsection (b):
1678		-	(1) An applicant for a permit under this section subsection (b)
1679		-	must be a proprietor, as owner or lessee, or both, of a restaurant
1680		-	located within an economic development area, an area needing
1681		-	redevelopment, or a redevelopment district as established under
1682		-	IC 36-7-14 in a municipality's:
1683		-	(A) downtown redevelopment district; or
1684		-	(B) downtown economic revitalization area.
1685		-	(2) The cost of an initial permit is forty thousand dollars
1686		-	($40,000).
1687		-	(3) The total number of active permits issued under this section
1688		-	subsection (b) may not exceed twenty-four (24) twenty (20)
1689		-	permits at any time. If any of the permits issued under this section
1690		-	subsection (b) are revoked or not renewed, the commission may
1691		-	issue only enough new permits to bring the total number of
1692		-	permits to twenty-four (24) twenty (20) active permits, with not
1693		-	more than four (4) in each municipality listed in subsection (b)(1)
1694		-	through (b)(6) (b)(5).
1695		-	(4) The municipality may adopt an ordinance under
1696		-	IC 7.1-3-19-17 requiring a permit holder to enter into a formal
1697		-	written commitment as a condition of eligibility for a permit. As
1698		-	set forth in IC 7.1-3-19-17(b), a formal written commitment is
1699		-	binding on the permit holder and on any lessee or proprietor of
1700		-	the permit premises.
1701		-	(5) Notwithstanding IC 7.1-3-1-3.5 and IC 7.1-3-1.1, if business
1702		-	operations cease at the permit premises for more than six (6)
1703		-	months, the permit shall revert to the commission and the permit
1704		-	holder is not entitled to any refund or other compensation.
1705		-	(6) Except as provided in subdivision (8), the ownership of a
1706		-	EH 1217—LS 6814/DI 87 40
1707		-	permit may not be transferred.
1708		-	(7) A permit may not be transferred from the premises for which
1709		-	the permit was issued.
1710		-	(8) If the area in which the permit premises is located is no longer
1711		-	designated an economic development area, an area needing
1712		-	redevelopment, or a redevelopment district, a permit issued under
1713		-	this section may be renewed, and the ownership of the permit may
1714		-	be transferred, but the permit may not be transferred from the
1715		-	permit premises.
1716		-	(d) Except as provided in section 16.3 of this chapter, the
1717		-	commission may issue not more than the following to the town of
1718		-	Whitestown:
1719		-	(1) Three (3) new three-way permits.
1720		-	(2) Three (3) new two-way permits.
1721		-	(3) One (1) new liquor dealer's permit.
1722		-	(e) The following apply to permits issued under subsection (d):
1723		-	(1) An applicant for a permit under subsection (d)(1) or (d)(2)
1724		-	must be a proprietor, as owner or lessee, or both, of a
1725		-	restaurant located within an economic development area, an
1726		-	area needing redevelopment, or a redevelopment district as
1727		-	established under IC 36-7-14 in a municipality's:
1728		-	(A) downtown redevelopment district; or
1729		-	(B) downtown economic revitalization area.
1730		-	(2) The cost of an initial permit is forty thousand dollars
1731		-	($40,000).
1732		-	(3) The total number of active permits issued under
1733		-	subsection (d) may not exceed seven (7) permits at any time.
1734		-	(4) The municipality may adopt an ordinance under
1735		-	IC 7.1-3-19-17 requiring a permit holder to enter into a
1736		-	formal written commitment as a condition of eligibility for a
1737		-	permit. As set forth in IC 7.1-3-19-17(b), a formal written
1738		-	commitment is binding on the permit holder and on any lessee
1739		-	or proprietor of the permit premises.
1740		-	(5) Notwithstanding IC 7.1-3-1-3.5 and IC 7.1-3-1.1, if
1741		-	business operations cease at the permit premises for more
1742		-	than six (6) months, the permit shall revert to the commission
1743		-	and the permit holder is not entitled to any refund or other
1744		-	compensation.
1745		-	(6) Except as provided in subdivision (8), the ownership of a
1746		-	permit may not be transferred.
1747		-	(7) A permit may not be transferred from the premises for
1748		-	which the permit was issued.
1749		-	EH 1217—LS 6814/DI 87 41
1750		-	(8) If the area in which the permit issued to a premises under
1751		-	subsection (d)(1) or (d)(2) is located is no longer designated an
1752		-	economic development area, an area needing redevelopment,
1753		-	or a redevelopment district, a permit issued under this section
1754		-	may be renewed, and the ownership of the permit may be
1755		-	transferred, but the permit may not be transferred from the
1756		-	permit premises.
1757		-	SECTION 7. IC 7.1-3-22-4.5 IS ADDED TO THE INDIANA
1758		-	CODE AS A NEW SECTION TO READ AS FOLLOWS
1759		-	[EFFECTIVE JULY 1, 2023]: Sec. 4.5. (a) As used in this section,
1760		-	"eligible grocery store" means a grocery store (as defined in
1761		-	IC 7.1-1-3-18.5(a)(1)) that meets the following criteria:
1762		-	(1) Is operated in a consolidated city.
1763		-	(2) Was established in whole or in part through a food
1764		-	empowerment pilot project authorized under P.L.165-2021,
1765		-	SECTION 6 and awarded to a nonprofit corporation for the
1766		-	benefit of establishing the grocery store.
1767		-	(3) Operates with less than eighteen thousand (18,000) square
1768		-	feet of building space.
1769		-	(4) Provides access to fresh and healthy foods to individuals
1770		-	in a low income area where access to resources for fresh and
1771		-	healthy food, particularly fresh fruits and vegetables and
1772		-	fresh meat, poultry, and fish, is limited.
1773		-	(b) The commission shall issue a beer dealer's permit and a wine
1774		-	dealer's permit to an eligible grocery store without regard to the
1775		-	quota provisions of this chapter.
1776		-	(c) A permit issued under this section is subject to the following:
1777		-	(1) A permit issued under this section may be renewed, and
1778		-	the ownership of the permit may be transferred, but the
1779		-	permit may not be transferred from the permit premises.
1780		-	(2) Notwithstanding IC 7.1-3-1.1, if the premises ceases to
1781		-	qualify as an eligible grocery store for more than six (6)
1782		-	months, the permit shall revert to the commission and the
1783		-	permit holder is not entitled to any refund or other
1784		-	compensation.".
1785		-	Page 17, delete lines 20 through 42
1786		-	Delete pages 18 through 19.
1787		-	Page 20, delete lines 1 through 14.
1788		-	Page 22, delete lines 22 through 24.
1789		-	Page 22, strike line 30.
1790		-	Page 22, line 31, strike "(2)" and insert "(1)".
1791		-	Page 22, line 33, strike "(3)" and insert "(2)".
1792		-	EH 1217—LS 6814/DI 87 42
1793		-	Page 22, after line 35, begin a new line block indented and insert:
1794		-	"(3) The minor, accompanied by the parent, guardian, or
1795		-	family member who is twenty-one (21) years of age or older,
1796		-	must be seated at a table or booth in the bar area and shall
1797		-	not be seated at the bar over which alcoholic beverages are
1798		-	sold or dispensed by the drink.".
1799		-	Renumber all SECTIONS consecutively.
1800		-	and when so amended that said bill do pass.
1801		-	(Reference is to HB 1217 as printed February 14, 2023.)
1802		-	ALTING, Chairperson
1803		-	Committee Vote: Yeas 8, Nays 0.
1804		-	EH 1217—LS 6814/DI 87
	1828	+	HB 1217—LS 6814/DI 87