*EH1217.1*
March 31, 2023
ENGROSSED
HOUSE BILL No. 1217
_____
DIGEST OF HB 1217 (Updated March 29, 2023 3:57 pm - DI 137)
Citations Affected: IC 7.1-1; IC 7.1-3; IC 7.1-5.
Synopsis: Various alcohol matters. Modifies the definition of
"entertainment complex" for purposes of alcohol law. Provides that a
primary source of supply, manufacturer, or wholesaler may supply
equipment on a temporary and nondiscriminatory basis to the holder of
a retailer permit or a temporary permit for the purpose of holding,
storing, and dispensing product to consumers for a special event for the
duration of the special event. Provides that certain brewers may sell or
transfer beer to certain food manufacturers for the purpose of adding
or integrating the beer into a product or recipe. Provides that a product
that contains transferred beer may not contain more than 0.5% of
(Continued next page)
Effective: July 1, 2023.
Manning, Bartels, Johnson B, Clere
(SENATE SPONSORS — ALTING, BUSCH)
January 10, 2023, read first time and referred to Committee on Public Policy.
February 14, 2023, amended, reported — Do Pass.
February 16, 2023, read second time, ordered engrossed.
February 17, 2023, engrossed.
February 20, 2023, read third time, passed. Yeas 94, nays 3.
SENATE ACTION
March 1, 2023, read first time and referred to Committee on Public Policy.
March 30, 2023, amended, reported favorably — Do Pass.
EH 1217—LS 6814/DI 87 Digest Continued
alcohol by volume when the product leaves the food manufacturer's
facility. Allows a small brewery to receive, bottle, and package beer
from another small brewery if certain requirements are met. Makes
technical corrections regarding a permit holder who manufactures not
more than 90,000 barrels of beer in a calendar year for sale or
distribution in the state. Increases, within a certain historic district, the
number of alcoholic beverage restaurant permits from 10 to 15, and
changes certain other requirements. Permits the issuance of three new
three-way permits, three new two-way permits, and one new liquor
dealer's permit to the town of Whitestown. Requires the alcohol and
tobacco commission to issue a beer dealer's permit and a wine dealer's
permit to an eligible grocery store. Increases the number of gallons of
liquor that an artisan distiller may produce in a calendar year from
10,000 to 20,000. Amends the conditions in which a minor can lawfully
be in a room on a licensed premises in which is located a bar over
which alcoholic beverages are sold or dispensed by the drink.
EH 1217—LS 6814/DI 87EH 1217—LS 6814/DI 87 March 31, 2023
First Regular Session of the 123rd General Assembly (2023)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
Constitution) is being amended, the text of the existing provision will appear in this style type,
additions will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional
provision adopted), the text of the new provision will appear in this style type. Also, the
word NEW will appear in that style type in the introductory clause of each SECTION that adds
a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
between statutes enacted by the 2022 Regular Session of the General Assembly.
ENGROSSED
HOUSE BILL No. 1217
A BILL FOR AN ACT to amend the Indiana Code concerning
alcohol and tobacco.
Be it enacted by the General Assembly of the State of Indiana:
1 SECTION 1. IC 7.1-1-3-16.5, AS AMENDED BY P.L.194-2021,
2 SECTION 13, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3 JULY 1, 2023]: Sec. 16.5. The term "entertainment complex" means a
4 premises that complies with one (1) or more of the following
5 requirements:
6 (1) The premises:
7 (A) is a site for the performance of musical, theatrical, or other
8 entertainment; and
9 (B) includes an area where at least six hundred (600)
10 individuals may be seated at one (1) time in permanent
11 seating.
12 (2) The premises:
13 (A) is located entirely within a four (4) five (5) mile radius of
14 the center of a consolidated city;
15 (B) is used by a nonprofit organization primarily as a museum
16 of fine arts, as a fine arts theater, or for the professional
17 performance of musical or theatrical entertainment; and
EH 1217—LS 6814/DI 87 2
1 (C) has audience seating in one (1) or more performance
2 spaces for at least two hundred (200) individuals.
3 SECTION 2. IC 7.1-1-3-32.7, AS ADDED BY P.L.270-2017,
4 SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
5 JULY 1, 2023]: Sec. 32.7. "Professional and educational expenses", for
6 purposes of IC 7.1-5-5, means one (1) or more of the following:
7 (1) A primary source of supply or wholesaler may participate in
8 retailer or dealer association activities. A primary source of
9 supply or wholesaler may do the following:
10 (A) Display its products at a convention or trade show.
11 (B) Rent display booth space if the rental fee is not excessive
12 and is the same as paid by all exhibitors.
13 (C) Provide its own hospitality that is independent from
14 association sponsored activities.
15 (D) Purchase tickets to functions and pay registration fees if
16 the payments or fees are not excessive and are the same as
17 paid by all exhibitors.
18 (E) Make payments for advertisements in programs or
19 brochures issued by retailer or dealer associations at a
20 convention or trade show if the total payments made are not
21 excessive and are the same as paid by all other advertisers.
22 (2) A primary source of supply or wholesaler may give or sponsor
23 educational seminars for employees of retailers or dealers either
24 at the primary source of supply's or wholesaler's premises or at the
25 retailer or dealer establishment. Examples of educational
26 seminars include the following:
27 (A) Seminars dealing with the use of a retailer's or dealer's
28 equipment.
29 (B) Training seminars for employees of retailers or dealers.
30 (C) Tours of a primary source of supply's or wholesaler's plant
31 or premises.
32 (D) Training seminars for employees of retailers or dealers
33 may include tasting or sampling of alcoholic beverages by the
34 employees of retailers or dealers. The tasting or sampling of an
35 alcoholic beverage product is limited to one (1) ounce per
36 employee of each alcoholic beverage product offered. The
37 alcoholic beverage to be tasted or sampled may be provided by
38 the primary source of supply or wholesaler or may be
39 purchased from the retailer or dealer for no more than the
40 listed retail price. The tasting or sampling may be conducted
41 only at a permit premises where the consumption of alcoholic
42 beverages is permitted. Any tasting or sampling provided by
EH 1217—LS 6814/DI 87 3
1 a primary source of supply or wholesaler must be offered or
2 conducted on a nondiscriminatory basis.
3 (E) Reasonable hospitality, such as food and alcoholic
4 beverages, may be offered as a part of an educational seminar.
5 (3) Advertising specialties and consumer advertising specialties,
6 even if not otherwise permitted by a rule of the commission, if a
7 wholesaler or primary source of supply does not:
8 (A) add the name or address of the retailer or dealer to the
9 advertising specialty or consumer advertising specialty; or
10 (B) pay or credit the retailer or dealer, directly or indirectly,
11 for distribution services.
12 (4) A primary source of supply, manufacturer, or wholesaler
13 may supply equipment on a temporary and nondiscriminatory
14 basis to the holder of a retailer permit or a temporary permit
15 for the purpose of holding, storing, and dispensing product to
16 consumers for a special event for the duration of the special
17 event. Ownership of the equipment shall remain with the
18 primary source of supply, manufacturer, or wholesaler.
19 SECTION 3. IC 7.1-3-2-7, AS AMENDED BY P.L.194-2021,
20 SECTION 29, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
21 JULY 1, 2023]: Sec. 7. The holder of a brewer's permit or an
22 out-of-state brewer holding either a primary source of supply permit or
23 an out-of-state brewer's permit may do the following:
24 (1) Manufacture beer.
25 (2) Place beer in containers or bottles.
26 (3) Transport beer.
27 (4) Sell and deliver beer to a person holding a beer wholesaler's
28 permit issued under IC 7.1-3-3.
29 (5) If the brewer manufactures, at all of the brewer's breweries,
30 located in Indiana, an aggregate of not more than ninety thousand
31 (90,000) barrels of beer in a calendar year for sale or distribution
32 within Indiana, the permit holder may do the following:
33 (A) Sell and deliver a total of not more than thirty thousand
34 (30,000) barrels of beer in a calendar year to a person holding
35 a retailer or a dealer permit under this title. The total number
36 of barrels of beer that the permit holder may sell and deliver
37 under this clause in a calendar year may not exceed thirty
38 thousand (30,000) barrels of beer.
39 (B) Be the proprietor of a restaurant that is not subject to the
40 minimum gross food sales or the minimum projected food
41 sales set forth in 905 IAC 1-41-2.
42 (C) Hold a beer retailer's permit, a wine retailer's permit, or a
EH 1217—LS 6814/DI 87 4
1 liquor retailer's permit for a restaurant established under clause
2 (B).
3 (D) Transfer beer directly from the brewery to the restaurant
4 by means of:
5 (i) bulk containers; or
6 (ii) a continuous flow system.
7 (E) Install a window between the brewery and an adjacent
8 restaurant that allows the public and the permittee to view both
9 premises.
10 (F) Install a doorway or other opening between the brewery
11 and an adjacent restaurant that provides the public and the
12 permittee with access to both premises.
13 (G) Sell the brewery's beer by the glass for consumption on the
14 premises. Brewers permitted to sell beer by the glass under
15 this clause must make food available for consumption on the
16 premises. A brewer may comply with the requirements of this
17 clause by doing any of the following:
18 (i) Allowing a vehicle of transportation that is a food
19 establishment (as defined in IC 16-18-2-137) to serve food
20 near the brewer's licensed premises.
21 (ii) Placing menus in the brewer's premises of restaurants
22 that will deliver food to the brewery.
23 (iii) Providing food prepared at the brewery.
24 (H) Sell and deliver beer to a consumer at the licensed
25 premises of the brewer or at the residence of the consumer.
26 Notwithstanding IC 7.1-1-3-20, the licensed premises may
27 include the brewery parking lot or an area adjacent to the
28 brewery that may only be used for the purpose of conveying
29 alcoholic beverages and other nonalcoholic items to a
30 customer subject to section 10 of this chapter, and may not be
31 used for point of sale purposes or any other purpose. The
32 delivery to a consumer may be made only in a quantity at any
33 one (1) time of not more than one-half (1/2) barrel, but the
34 beer may be contained in bottles or other permissible
35 containers.
36 (I) Sell the brewery's beer as authorized by this section for
37 carryout on Sunday in a quantity at any one (1) time of not
38 more than five hundred seventy-six (576) ounces. A brewer's
39 beer may be sold under this clause at any address for which the
40 brewer holds a brewer's permit issued under this chapter if the
41 address is located within the same city boundaries in which the
42 beer was manufactured.
EH 1217—LS 6814/DI 87 5
1 (J) With the approval of the commission, participate:
2 (i) individually; or
3 (ii) with other permit holders under this chapter, holders of
4 artisan distiller's permits, holders of farm winery permits, or
5 any combination of holders described in this item;
6 in a trade show or an exposition at which products of each
7 permit holder participant are displayed, promoted, and sold.
8 All of the permit holders may occupy the same tent, structure,
9 or building. The commission may not grant to a holder of a
10 permit under this chapter approval under this clause to
11 participate in a trade show or exposition for more than
12 forty-five (45) days in a calendar year.
13 (K) Store or condition beer in a secure building that is:
14 (i) separate from the brewery; and
15 (ii) owned or leased by the permit holder.
16 (L) Transfer beer from a building described in clause (K) back
17 to the brewery.
18 (M) Sell or transfer beer directly to a beer wholesaler from a
19 building described in clause (K), but may not sell or transfer
20 beer from the building to any other permittee or a consumer.
21 The brewer shall maintain an adequate written record of the
22 beer transferred:
23 (i) between the brewery and the separate building; and
24 (ii) from the separate building to the wholesaler.
25 (N) Sell the brewery's beer to the holder of a supplemental
26 caterer's permit issued under IC 7.1-3-9.5 for on-premises
27 consumption only at an event that is held outdoors on property
28 that is contiguous to the brewery as approved by the
29 commission.
30 (O) Receive liquor from the holder of a distiller's permit issued
31 under IC 7.1-3-7 or the holder of an artisan distiller's permit
32 under IC 7.1-3-27 that is located in the same county as the
33 brewery for the purpose of carbonating and canning the liquor.
34 Upon the completion of canning of the liquor, the product
35 must be returned to the original production facility within
36 forty-eight (48) hours. The activity under this clause is not an
37 interest under IC 7.1-5-9.
38 (P) Receive beer from another permit holder under this
39 subdivision for the purpose of bottling and packaging the
40 beer. Upon completion of bottling and packaging the beer,
41 the product must be returned to the original permit holder
42 who manufactured the beer. The number of barrels of beer
EH 1217—LS 6814/DI 87 6
1 that a permit holder receives, bottles, and packages under
2 this clause may not exceed the number of barrels of beer
3 that the permit holder produced from raw materials at the
4 licensed premises of the permit holder in the same
5 calendar year. The activity under this clause is not an
6 interest under IC 7.1-5-9.
7 (Q) Sell or transfer beer directly to a food manufacturer
8 located in Indiana that is registered with the federal Food
9 and Drug Administration for the purpose of adding or
10 integrating the beer into a product or recipe.
11 (6) If the brewer's brewery manufactures more than ninety
12 thousand (90,000) barrels of beer in a calendar year for sale or
13 distribution within Indiana, the permit holder may own a portion
14 of the corporate stock of another brewery that:
15 (A) is located in the same county as the brewer's brewery;
16 (B) manufactures less than ninety thousand (90,000) barrels of
17 beer in a calendar year; and
18 (C) is the proprietor of a restaurant that operates under
19 subdivision (5).
20 (7) Provide complimentary samples of beer that are:
21 (A) produced by the brewer; and
22 (B) offered to consumers for consumption on the brewer's
23 premises.
24 (8) Own a portion of the corporate stock of a sports corporation
25 that:
26 (A) manages a minor league baseball stadium located in the
27 same county as the brewer's brewery; and
28 (B) holds a beer retailer's permit, a wine retailer's permit, or a
29 liquor retailer's permit for a restaurant located in that stadium.
30 (9) For beer described in IC 7.1-1-2-3(a)(4):
31 (A) may allow transportation to and consumption of the beer
32 on the licensed premises; and
33 (B) may not sell, offer to sell, or allow sale of the beer on the
34 licensed premises.
35 SECTION 4. IC 7.1-3-2-11 IS ADDED TO THE INDIANA CODE
36 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
37 1, 2023]: Sec. 11. (a) A finished product of a food manufacturer
38 that contains beer transferred to the food manufacturer under
39 section 7(5)(Q) of this chapter may not contain more than one-half
40 of one percent (0.5%) of alcohol by volume when the product
41 leaves the food manufacturer's facility.
42 (b) Beer that is sold or transferred to a food manufacturer
EH 1217—LS 6814/DI 87 7
1 under section 7(5)(Q) of this chapter shall be included within the
2 barrels of beer limits set forth in section 7(5)(A) of this chapter.
3 SECTION 5. IC 7.1-3-20-16, AS AMENDED BY P.L.104-2022,
4 SECTION 57, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
5 JULY 1, 2023]: Sec. 16. (a) A permit that is authorized by this section
6 may be issued without regard to the quota provisions of IC 7.1-3-22.
7 (b) The commission may issue a three-way permit to sell alcoholic
8 beverages for on-premises consumption only to an applicant who is the
9 proprietor, as owner or lessee, or both, of a restaurant facility in the
10 passenger terminal complex of a publicly owned airport. A permit
11 issued under this subsection shall not be transferred to a location off
12 the airport premises.
13 (c) Except as provided in sections 16.3 and 16.4 of this chapter, the
14 commission may issue a three-way, two-way, or one-way permit to sell
15 alcoholic beverages for on-premises consumption only to an applicant
16 who is the proprietor, as owner or lessee, or both, of a restaurant within
17 a redevelopment project consisting of a building or group of buildings
18 that:
19 (1) was formerly used as part of a union railway station;
20 (2) has been listed in or is within a district that has been listed in
21 the federal National Register of Historic Places maintained
22 pursuant to the National Historic Preservation Act of 1966, as
23 amended; and
24 (3) has been redeveloped or renovated, with the redevelopment or
25 renovation being funded in part with grants from the federal,
26 state, or local government.
27 A permit issued under this subsection shall not be transferred to a
28 location outside of the redevelopment project.
29 (d) Subject to section 16.1 of this chapter and except as provided in
30 section 16.3 of this chapter, the commission may issue a three-way,
31 two-way, or one-way permit to sell alcoholic beverages for on-premises
32 consumption only to an applicant who is the proprietor, as owner or
33 lessee, or both, of a restaurant:
34 (1) on land; or
35 (2) in a historic river vessel;
36 within a municipal riverfront development project funded in part with
37 state and city money. The ownership of a permit issued under this
38 subsection and the location for which the permit was issued may not be
39 transferred. The legislative body of the municipality in which the
40 municipal riverfront development project is located shall recommend
41 to the commission sites that are eligible to be permit premises. The
42 commission shall consider, but is not required to follow, the municipal
EH 1217—LS 6814/DI 87 8
1 legislative body's recommendation in issuing a permit under this
2 subsection. A permit holder and any lessee or proprietor of the permit
3 premises are subject to the formal written commitment required under
4 IC 7.1-3-19-17. Notwithstanding IC 7.1-3-1-3.5 and IC 7.1-3-1.1, if
5 business operations cease at the permit premises for more than six (6)
6 months, the permit shall revert to the commission. The permit holder
7 is not entitled to any refund or other compensation.
8 (e) Except as provided in sections 16.3 and 16.4 of this chapter, the
9 commission may issue a three-way, two-way, or one-way permit to sell
10 alcoholic beverages for on-premises consumption only to an applicant
11 who is the proprietor, as owner or lessee, or both, of a restaurant within
12 a renovation project consisting of:
13 (1) a building that:
14 (A) was formerly used as part of a passenger and freight
15 railway station; and
16 (B) was built before 1900; or
17 (2) a complex of buildings that:
18 (A) is part of an economic development area established under
19 IC 36-7-14; and
20 (B) includes, as part of the renovation project, the use and
21 repurposing of two (2) or more buildings and structures that
22 are:
23 (i) at least seventy-five (75) years old; and
24 (ii) located at a site at which manufacturing previously
25 occurred over a period of at least seventy-five (75) years.
26 The permit authorized by this subsection may be issued without regard
27 to the proximity provisions of IC 7.1-3-21-11.
28 (f) Except as provided in section 16.3 of this chapter, the
29 commission may issue a three-way permit for the sale of alcoholic
30 beverages for on-premises consumption at a cultural center for the
31 visual and performing arts to the following:
32 (1) A town having a population of more than twenty-three
33 thousand (23,000) and less than twenty-three thousand nine
34 hundred (23,900) located in a county having a population of more
35 than four hundred thousand (400,000) and less than seven
36 hundred thousand (700,000).
37 (2) A city that has an indoor theater as described in section 26 of
38 this chapter.
39 (g) Except as provided in section 16.3 of this chapter, the
40 commission may issue not more than ten (10) fifteen (15) new
41 three-way, two-way, or one-way permits to sell alcoholic beverages for
42 on-premises consumption to applicants, each of whom must be the
EH 1217—LS 6814/DI 87 9
1 proprietor, as owner or lessee, or both, of a restaurant located within a
2 district, or not more than seven hundred (700) one thousand five
3 hundred (1,500) feet from a district, that meets the following
4 requirements:
5 (1) The district has been listed in the National Register of Historic
6 Places maintained under the National Historic Preservation Act
7 of 1966, as amended.
8 (2) A county courthouse is located within the district.
9 (3) A historic opera house listed on the National Register of
10 Historic Places is located within the district.
11 (4) A historic jail and sheriff's house listed on the National
12 Register of Historic Places is located within the district.
13 The legislative body of the municipality in which the district is located
14 shall recommend to the commission sites that are eligible to be permit
15 premises. The commission shall consider, but is not required to follow,
16 the municipal legislative body's recommendation in issuing a permit
17 under this subsection. An applicant is not eligible for a permit if, less
18 than two (2) years before the date of the application, the applicant sold
19 a retailer's permit that was subject to IC 7.1-3-22 and that was for
20 premises located within the district described in this section or within
21 seven hundred (700) one thousand five hundred (1,500) feet of the
22 district. The ownership of a permit issued under this subsection and the
23 location for which the permit was issued shall not be transferred. A
24 permit holder and any lessee or proprietor of the permit premises is
25 subject to the formal written commitment required under
26 IC 7.1-3-19-17. Notwithstanding IC 7.1-3-1-3.5 and IC 7.1-3-1.1, if
27 business operations cease at the permit premises for more than six (6)
28 months, the permit shall revert to the commission. The permit holder
29 is not entitled to any refund or other compensation. The total number
30 of active permits issued under this subsection may not exceed ten (10)
31 fifteen (15) at any time. The cost of an initial permit issued under this
32 subsection is six thousand dollars ($6,000). twenty-five thousand
33 dollars ($25,000).
34 (h) Except as provided in section 16.3 of this chapter, the
35 commission may issue a three-way permit for the sale of alcoholic
36 beverages for on-premises consumption to an applicant who will locate
37 as the proprietor, as owner or lessee, or both, of a restaurant within an
38 economic development area under IC 36-7-14 in:
39 (1) a town having a population of more than twenty thousand
40 (20,000); or
41 (2) a city having a population of more than forty-nine thousand
42 four hundred (49,400) and less than fifty thousand (50,000);
EH 1217—LS 6814/DI 87 10
1 located in a county having a population of more than one hundred
2 twenty thousand (120,000) and less than one hundred thirty thousand
3 (130,000). The commission may issue not more than five (5) licenses
4 under this section to premises within a municipality described in
5 subdivision (1) and not more than five (5) licenses to premises within
6 a municipality described in subdivision (2). The commission shall
7 conduct an auction of the permits under IC 7.1-3-22-9, except that the
8 auction may be conducted at any time as determined by the
9 commission. Notwithstanding any other law, the minimum bid for an
10 initial license under this subsection is thirty-five thousand dollars
11 ($35,000), and the renewal fee for a license under this subsection is one
12 thousand three hundred fifty dollars ($1,350). Before the district
13 expires, a permit issued under this subsection may not be transferred.
14 After the district expires, a permit issued under this subsection may be
15 renewed, and the ownership of the permit may be transferred, but the
16 permit may not be transferred from the permit premises.
17 (i) After June 30, 2006, and except as provided in section 16.3 of
18 this chapter, the commission may issue not more than five (5) new
19 three-way, two-way, or one-way permits to sell alcoholic beverages for
20 on-premises consumption to applicants, each of whom must be the
21 proprietor, as owner or lessee, or both, of a restaurant located within a
22 district, or not more than five hundred (500) feet from a district, that
23 meets all of the following requirements:
24 (1) The district is within an economic development area, an area
25 needing redevelopment, or a redevelopment district as established
26 under IC 36-7-14.
27 (2) A unit of the National Park Service is partially located within
28 the district.
29 (3) An international deep water seaport is located within the
30 district.
31 An applicant is not eligible for a permit under this subsection if, less
32 than two (2) years before the date of the application, the applicant sold
33 a retailers' permit that was subject to IC 7.1-3-22 and that was for
34 premises located within the district described in this subsection or
35 within five hundred (500) feet of the district. A permit issued under this
36 subsection may not be transferred. If the commission issues five (5)
37 new permits under this subsection, and a permit issued under this
38 subsection is later revoked or is not renewed, the commission may
39 issue another new permit, as long as the total number of active permits
40 issued under this subsection does not exceed five (5) at any time. The
41 commission shall conduct an auction of the permits under
42 IC 7.1-3-22-9, except that the auction may be conducted at any time as
EH 1217—LS 6814/DI 87 11
1 determined by the commission.
2 (j) Subject to section 16.2 of this chapter and except as provided in
3 section 16.3 of this chapter, the commission may issue not more than
4 six (6) new three-way, two-way, or one-way permits to sell alcoholic
5 beverages for on-premises consumption only to an applicant who is the
6 proprietor, as owner or lessee, or both, of a restaurant on land within a
7 municipal lakefront development project. A permit issued under this
8 subsection may not be transferred. If the commission issues six (6) new
9 permits under this subsection, and a permit issued under this subsection
10 is later revoked or is not renewed, the commission may issue another
11 new permit, as long as the total number of active permits issued under
12 this subsection does not exceed six (6) at any time. The commission
13 shall conduct an auction of the permits under IC 7.1-3-22-9, except that
14 the auction may be conducted at any time as determined by the
15 commission. Notwithstanding any other law, the minimum bid for an
16 initial permit under this subsection is ten thousand dollars ($10,000).
17 (k) Except as provided in section 16.3 of this chapter, the
18 commission may issue not more than nine (9) new three-way permits
19 to sell alcoholic beverages for on-premises consumption to applicants,
20 each of whom must be a proprietor, as owner or lessee, or both, of a
21 restaurant located:
22 (1) within a motorsports investment district (as defined in
23 IC 5-1-17.5-11); or
24 (2) not more than one thousand five hundred (1,500) feet from a
25 motorsports investment district.
26 The ownership of a permit issued under this subsection and the location
27 for which the permit was issued shall not be transferred. If the
28 commission issues nine (9) new permits under this subsection, and a
29 permit issued under this subsection is later revoked or is not renewed,
30 the commission may issue another new permit, as long as the total
31 number of active permits issued under this subsection does not exceed
32 nine (9) at any time. A permit holder and any lessee or proprietor of the
33 permit premises are subject to the formal written commitment required
34 under IC 7.1-3-19-17. Notwithstanding IC 7.1-3-1-3.5 and IC 7.1-3-1.1,
35 if business operations cease at the permit premises for more than six
36 (6) months, the permit shall revert to the commission. The permit
37 holder is not entitled to any refund or other compensation.
38 (l) Except as provided in section 16.3 of this chapter, the
39 commission may issue not more than two (2) new three-way permits to
40 sell alcoholic beverages for on-premises consumption for premises
41 located within a qualified motorsports facility (as defined in
42 IC 5-1-17.5-14). The ownership of a permit issued under this
EH 1217—LS 6814/DI 87 12
1 subsection and the location for which the permit was issued shall not
2 be transferred. If the commission issues two (2) new permits under this
3 subsection, and a permit issued under this subsection is later revoked
4 or is not renewed, the commission may issue another new permit, as
5 long as the total number of active permits issued under this subsection
6 does not exceed two (2) at any time. A permit holder and any lessee or
7 proprietor of the permit premises are subject to the formal written
8 commitment required under IC 7.1-3-19-17. Notwithstanding
9 IC 7.1-3-1-3.5 and IC 7.1-3-1.1, if business operations cease at the
10 permit premises for more than six (6) months, the permit shall revert
11 to the commission. The permit holder is not entitled to any refund or
12 other compensation.
13 SECTION 6. IC 7.1-3-20-16.8, AS AMENDED BY P.L.285-2019,
14 SECTION 36, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
15 JULY 1, 2023]: Sec. 16.8. (a) A permit that is authorized by this
16 section may be issued without regard to the quota provisions of
17 IC 7.1-3-22.
18 (b) Except as provided in section 16.3 of this chapter, the
19 commission may issue not more than four (4) new three-way permits
20 to sell alcoholic beverages for on-premises consumption to applicants
21 in each of the following municipalities:
22 (1) Whitestown.
23 (2) (1) Lebanon.
24 (3) (2) Zionsville.
25 (4) (3) Westfield.
26 (5) (4) Carmel.
27 (6) (5) Fishers.
28 (c) The following apply to permits issued under this section
29 subsection (b):
30 (1) An applicant for a permit under this section subsection (b)
31 must be a proprietor, as owner or lessee, or both, of a restaurant
32 located within an economic development area, an area needing
33 redevelopment, or a redevelopment district as established under
34 IC 36-7-14 in a municipality's:
35 (A) downtown redevelopment district; or
36 (B) downtown economic revitalization area.
37 (2) The cost of an initial permit is forty thousand dollars
38 ($40,000).
39 (3) The total number of active permits issued under this section
40 subsection (b) may not exceed twenty-four (24) twenty (20)
41 permits at any time. If any of the permits issued under this section
42 subsection (b) are revoked or not renewed, the commission may
EH 1217—LS 6814/DI 87 13
1 issue only enough new permits to bring the total number of
2 permits to twenty-four (24) twenty (20) active permits, with not
3 more than four (4) in each municipality listed in subsection (b)(1)
4 through (b)(6) (b)(5).
5 (4) The municipality may adopt an ordinance under
6 IC 7.1-3-19-17 requiring a permit holder to enter into a formal
7 written commitment as a condition of eligibility for a permit. As
8 set forth in IC 7.1-3-19-17(b), a formal written commitment is
9 binding on the permit holder and on any lessee or proprietor of
10 the permit premises.
11 (5) Notwithstanding IC 7.1-3-1-3.5 and IC 7.1-3-1.1, if business
12 operations cease at the permit premises for more than six (6)
13 months, the permit shall revert to the commission and the permit
14 holder is not entitled to any refund or other compensation.
15 (6) Except as provided in subdivision (8), the ownership of a
16 permit may not be transferred.
17 (7) A permit may not be transferred from the premises for which
18 the permit was issued.
19 (8) If the area in which the permit premises is located is no longer
20 designated an economic development area, an area needing
21 redevelopment, or a redevelopment district, a permit issued under
22 this section may be renewed, and the ownership of the permit may
23 be transferred, but the permit may not be transferred from the
24 permit premises.
25 (d) Except as provided in section 16.3 of this chapter, the
26 commission may issue not more than the following to the town of
27 Whitestown:
28 (1) Three (3) new three-way permits.
29 (2) Three (3) new two-way permits.
30 (3) One (1) new liquor dealer's permit.
31 (e) The following apply to permits issued under subsection (d):
32 (1) An applicant for a permit under subsection (d)(1) or (d)(2)
33 must be a proprietor, as owner or lessee, or both, of a
34 restaurant located within an economic development area, an
35 area needing redevelopment, or a redevelopment district as
36 established under IC 36-7-14 in a municipality's:
37 (A) downtown redevelopment district; or
38 (B) downtown economic revitalization area.
39 (2) The cost of an initial permit is forty thousand dollars
40 ($40,000).
41 (3) The total number of active permits issued under
42 subsection (d) may not exceed seven (7) permits at any time.
EH 1217—LS 6814/DI 87 14
1 (4) The municipality may adopt an ordinance under
2 IC 7.1-3-19-17 requiring a permit holder to enter into a
3 formal written commitment as a condition of eligibility for a
4 permit. As set forth in IC 7.1-3-19-17(b), a formal written
5 commitment is binding on the permit holder and on any lessee
6 or proprietor of the permit premises.
7 (5) Notwithstanding IC 7.1-3-1-3.5 and IC 7.1-3-1.1, if
8 business operations cease at the permit premises for more
9 than six (6) months, the permit shall revert to the commission
10 and the permit holder is not entitled to any refund or other
11 compensation.
12 (6) Except as provided in subdivision (8), the ownership of a
13 permit may not be transferred.
14 (7) A permit may not be transferred from the premises for
15 which the permit was issued.
16 (8) If the area in which the permit issued to a premises under
17 subsection (d)(1) or (d)(2) is located is no longer designated an
18 economic development area, an area needing redevelopment,
19 or a redevelopment district, a permit issued under this section
20 may be renewed, and the ownership of the permit may be
21 transferred, but the permit may not be transferred from the
22 permit premises.
23 SECTION 7. IC 7.1-3-22-4.5 IS ADDED TO THE INDIANA
24 CODE AS A NEW SECTION TO READ AS FOLLOWS
25 [EFFECTIVE JULY 1, 2023]: Sec. 4.5. (a) As used in this section,
26 "eligible grocery store" means a grocery store (as defined in
27 IC 7.1-1-3-18.5(a)(1)) that meets the following criteria:
28 (1) Is operated in a consolidated city.
29 (2) Was established in whole or in part through a food
30 empowerment pilot project authorized under P.L.165-2021,
31 SECTION 6 and awarded to a nonprofit corporation for the
32 benefit of establishing the grocery store.
33 (3) Operates with less than eighteen thousand (18,000) square
34 feet of building space.
35 (4) Provides access to fresh and healthy foods to individuals
36 in a low income area where access to resources for fresh and
37 healthy food, particularly fresh fruits and vegetables and
38 fresh meat, poultry, and fish, is limited.
39 (b) The commission shall issue a beer dealer's permit and a wine
40 dealer's permit to an eligible grocery store without regard to the
41 quota provisions of this chapter.
42 (c) A permit issued under this section is subject to the following:
EH 1217—LS 6814/DI 87 15
1 (1) A permit issued under this section may be renewed, and
2 the ownership of the permit may be transferred, but the
3 permit may not be transferred from the permit premises.
4 (2) Notwithstanding IC 7.1-3-1.1, if the premises ceases to
5 qualify as an eligible grocery store for more than six (6)
6 months, the permit shall revert to the commission and the
7 permit holder is not entitled to any refund or other
8 compensation.
9 SECTION 8. IC 7.1-3-27-3, AS AMENDED BY P.L.159-2014,
10 SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
11 JULY 1, 2023]: Sec. 3. (a) An artisan distiller may produce not more
12 than ten twenty thousand (10,000) (20,000) gallons of liquor in any
13 calendar year. Liquor produced by an artisan distiller that is sold
14 through a wholesaler licensed under IC 7.1-3-8 may not be counted
15 toward the gallonage limit.
16 (b) An artisan distiller who knowingly or intentionally violates this
17 section commits a Class B misdemeanor.
18 SECTION 9. IC 7.1-5-3-1, AS AMENDED BY P.L.79-2015,
19 SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
20 JULY 1, 2023]: Sec. 1. (a) This section does not apply to the following:
21 (1) An establishment where alcoholic beverages are sold that is
22 owned, in whole or part, by an entity that holds a brewer's permit
23 issued under IC 7.1-3-2-2(b).
24 (2) An establishment where alcoholic beverages are sold that is
25 owned, in whole or part, by a statewide trade organization
26 consisting of members, each of whom holds a brewer's permit
27 issued under IC 7.1-3-2-2(b).
28 (3) Beer that is bottled and packaged under IC 7.1-3-2-7(5)(P).
29 (b) Except as provided in section 6 of this chapter, it is unlawful to
30 sell beer in this state at retail in a bottle, can, or other container, unless
31 the bottle, can, or other container was packaged and sealed by the
32 brewer at the brewer's bottling house contiguous or adjacent to the
33 brewery in which the beer was produced.
34 (c) A person who knowingly or intentionally violates subsection (b)
35 commits a Class B misdemeanor.
36 SECTION 10. IC 7.1-5-7-11, AS AMENDED BY P.L.105-2022,
37 SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
38 JULY 1, 2023]: Sec. 11. (a) The provisions of sections 9 and 10 of this
39 chapter shall not apply if the public place involved is one (1) of the
40 following:
41 (1) Civic center.
42 (2) Convention center.
EH 1217—LS 6814/DI 87 16
1 (3) Sports arena.
2 (4) Bowling center.
3 (5) Bona fide club.
4 (6) Drug store.
5 (7) Grocery store.
6 (8) Boat.
7 (9) Dining car.
8 (10) Pullman car.
9 (11) Club car.
10 (12) Passenger airplane.
11 (13) Horse racetrack facility holding a recognized meeting permit
12 under IC 4-31-5.
13 (14) Satellite facility (as defined in IC 4-31-2.1-36).
14 (15) Catering hall under IC 7.1-3-20-24 that is not open to the
15 public.
16 (16) That part of a restaurant which is separate from a room in
17 which is located a bar over which alcoholic beverages are sold or
18 dispensed by the drink.
19 (17) Entertainment complex.
20 (18) Indoor golf facility.
21 (19) A recreational facility such as a golf course, bowling center,
22 or similar facility that has the recreational activity and not the sale
23 of food and beverages as the principal purpose or function of the
24 person's business.
25 (20) A licensed premises owned or operated by a postsecondary
26 educational institution described in IC 21-17-6-1.
27 (21) An automobile racetrack.
28 (22) An indoor theater under IC 7.1-3-20-26.
29 (23) A senior residence facility campus (as defined in
30 IC 7.1-3-1-29(c)) at which alcoholic beverages are given or
31 furnished as provided under IC 7.1-3-1-29.
32 (24) A hotel other than a part of a hotel that is a room in a
33 restaurant in which a bar is located over which alcoholic
34 beverages are sold or dispensed by the drink.
35 (25) The location of an allowable event to which IC 7.1-3-6.1
36 applies.
37 (26) The location of a charity auction to which IC 7.1-3-6.2
38 applies.
39 (27) A tour of a brewery as provided in IC 7.1-3-20-16.4, if the
40 minor is in the company of a parent, legal guardian or custodian,
41 or family member who is at least twenty-one (21) years of age.
42 (28) A farm winery and any additional locations of the farm
EH 1217—LS 6814/DI 87 17
1 winery under IC 7.1-3-12, if the minor is in the company of a
2 parent, legal guardian or custodian, or family member who is at
3 least twenty-one (21) years of age and the minor is accompanied
4 by the adult in any area that the adult may be present whether or
5 not the area:
6 (A) is separated in any manner from where the wine is
7 manufactured, sold, or consumed within the farm winery
8 premises; or
9 (B) operates under a retailer's permit.
10 (29) An artisan distillery under IC 7.1-3-27, if:
11 (A) the person who holds the artisan distiller's permit also
12 holds a farm winery permit under IC 7.1-3-12, or
13 IC 7.1-3-20-16.4(a) applies to the person; and
14 (B) the minor is in the company of a parent, legal guardian or
15 custodian, or family member who is at least twenty-one (21)
16 years of age.
17 (30) An art instruction studio under IC 7.1-5-8-4.6.
18 (31) The licensed premises of a food hall under IC 7.1-3-20-29
19 and the food and beverage vending space of a food hall vendor
20 permittee under IC 7.1-3-20-30. However, sections 9 and 10 of
21 this chapter apply to a bar within the food and beverage vending
22 space of a food hall vendor permittee under IC 7.1-3-20-30 that
23 serves alcoholic beverages intended to be consumed while sitting
24 or standing at the bar.
25 (b) For the purpose of this subsection, "food" means meals prepared
26 on the licensed premises. It is lawful for a minor to be on licensed
27 premises in a room in which is located a bar over which alcoholic
28 beverages are sold or dispensed by the drink if all the following
29 conditions are met:
30 (1) The minor is eighteen (18) years of age or older.
31 (2) (1) The minor is in the company of a parent, guardian, or
32 family member who is twenty-one (21) years of age or older.
33 (3) (2) The purpose for being on the licensed premises is the
34 consumption of food and not the consumption of alcoholic
35 beverages.
36 (3) The minor, accompanied by the parent, guardian, or
37 family member who is twenty-one (21) years of age or older,
38 must be seated at a table or booth in the bar area and shall
39 not be seated at the bar over which alcoholic beverages are
40 sold or dispensed by the drink.
EH 1217—LS 6814/DI 87 18
COMMITTEE REPORT
Mr. Speaker: Your Committee on Public Policy, to which was
referred House Bill 1217, has had the same under consideration and
begs leave to report the same back to the House with the
recommendation that said bill be amended as follows:
Page 1, between the enacting clause and line 1, begin a new
paragraph and insert:
"SECTION 1. IC 7.1-1-3-16.5, AS AMENDED BY P.L.194-2021,
SECTION 13, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2023]: Sec. 16.5. The term "entertainment complex" means a
premises that complies with one (1) or more of the following
requirements:
(1) The premises:
(A) is a site for the performance of musical, theatrical, or other
entertainment; and
(B) includes an area where at least six hundred (600)
individuals may be seated at one (1) time in permanent
seating.
(2) The premises:
(A) is located entirely within a four (4) five (5) mile radius of
the center of a consolidated city;
(B) is used by a nonprofit organization primarily as a museum
of fine arts, as a fine arts theater, or for the professional
performance of musical or theatrical entertainment; and
(C) has audience seating in one (1) or more performance
spaces for at least two hundred (200) individuals.".
Page 2, after line 41, begin a new paragraph and insert:
"SECTION 3. IC 7.1-3-1-31 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2023]: Sec. 31. (a) As used in this chapter, "salon" means a
beauty culture salon licensed under IC 25-8-7.
(b) A salon may possess and give or furnish beer by the bottle or
glass, or wine by the glass, on the premises of the salon for
consumption on the premises to a salon customer who is:
(1) at least twenty-one (21) years of age; and
(2) receiving salon services.
(c) Beer or wine may only be dispensed under subsection (b) by
a salon employee who holds a permit under IC 7.1-3-18-9.
(d) This section may not be construed to authorize a salon to sell
wine or beer on the premises of the salon without a permit under
this title.
SECTION 4. IC 7.1-3-2-7, AS AMENDED BY P.L.194-2021,
EH 1217—LS 6814/DI 87 19
SECTION 29, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2023]: Sec. 7. The holder of a brewer's permit or an
out-of-state brewer holding either a primary source of supply permit or
an out-of-state brewer's permit may do the following:
(1) Manufacture beer.
(2) Place beer in containers or bottles.
(3) Transport beer.
(4) Sell and deliver beer to a person holding a beer wholesaler's
permit issued under IC 7.1-3-3.
(5) If the brewer manufactures, at all of the brewer's breweries
located in Indiana, an aggregate of not more than ninety thousand
(90,000) barrels of beer in a calendar year for sale or distribution
within Indiana, the permit holder may do the following:
(A) Sell and deliver a total of not more than thirty thousand
(30,000) barrels of beer in a calendar year to a person holding
a retailer or a dealer permit under this title. The total number
of barrels of beer that the permit holder may sell and deliver
under this clause in a calendar year may not exceed thirty
thousand (30,000) barrels of beer.
(B) Be the proprietor of a restaurant that is not subject to the
minimum gross food sales or the minimum projected food
sales set forth in 905 IAC 1-41-2.
(C) Hold a beer retailer's permit, a wine retailer's permit, or a
liquor retailer's permit for a restaurant established under clause
(B).
(D) Transfer beer directly from the brewery to the restaurant
by means of:
(i) bulk containers; or
(ii) a continuous flow system.
(E) Install a window between the brewery and an adjacent
restaurant that allows the public and the permittee to view both
premises.
(F) Install a doorway or other opening between the brewery
and an adjacent restaurant that provides the public and the
permittee with access to both premises.
(G) Sell the brewery's beer by the glass for consumption on the
premises. Brewers permitted to sell beer by the glass under
this clause must make food available for consumption on the
premises. A brewer may comply with the requirements of this
clause by doing any of the following:
(i) Allowing a vehicle of transportation that is a food
establishment (as defined in IC 16-18-2-137) to serve food
EH 1217—LS 6814/DI 87 20
near the brewer's licensed premises.
(ii) Placing menus in the brewer's premises of restaurants
that will deliver food to the brewery.
(iii) Providing food prepared at the brewery.
(H) Sell and deliver beer to a consumer at the licensed
premises of the brewer or at the residence of the consumer.
Notwithstanding IC 7.1-1-3-20, the licensed premises may
include the brewery parking lot or an area adjacent to the
brewery that may only be used for the purpose of conveying
alcoholic beverages and other nonalcoholic items to a
customer subject to section 10 of this chapter, and may not be
used for point of sale purposes or any other purpose. The
delivery to a consumer may be made only in a quantity at any
one (1) time of not more than one-half (1/2) barrel, but the
beer may be contained in bottles or other permissible
containers.
(I) Sell the brewery's beer as authorized by this section for
carryout on Sunday in a quantity at any one (1) time of not
more than five hundred seventy-six (576) ounces. A brewer's
beer may be sold under this clause at any address for which the
brewer holds a brewer's permit issued under this chapter if the
address is located within the same city boundaries in which the
beer was manufactured.
(J) With the approval of the commission, participate:
(i) individually; or
(ii) with other permit holders under this chapter, holders of
artisan distiller's permits, holders of farm winery permits, or
any combination of holders described in this item;
in a trade show or an exposition at which products of each
permit holder participant are displayed, promoted, and sold.
All of the permit holders may occupy the same tent, structure,
or building. The commission may not grant to a holder of a
permit under this chapter approval under this clause to
participate in a trade show or exposition for more than
forty-five (45) days in a calendar year.
(K) Store or condition beer in a secure building that is:
(i) separate from the brewery; and
(ii) owned or leased by the permit holder.
(L) Transfer beer from a building described in clause (K) back
to the brewery.
(M) Sell or transfer beer directly to a beer wholesaler from a
building described in clause (K), but may not sell or transfer
EH 1217—LS 6814/DI 87 21
beer from the building to any other permittee or a consumer.
The brewer shall maintain an adequate written record of the
beer transferred:
(i) between the brewery and the separate building; and
(ii) from the separate building to the wholesaler.
(N) Sell the brewery's beer to the holder of a supplemental
caterer's permit issued under IC 7.1-3-9.5 for on-premises
consumption only at an event that is held outdoors on property
that is contiguous to the brewery as approved by the
commission.
(O) Receive liquor from the holder of a distiller's permit issued
under IC 7.1-3-7 or the holder of an artisan distiller's permit
under IC 7.1-3-27 that is located in the same county as the
brewery for the purpose of carbonating and canning the liquor.
Upon the completion of canning of the liquor, the product
must be returned to the original production facility within
forty-eight (48) hours. The activity under this clause is not an
interest under IC 7.1-5-9.
(P) Receive beer from another permit holder under this
subdivision for the purpose of bottling and packaging the
beer. Upon completion of bottling and packaging the beer,
the product must be returned to the original permit holder.
The number of gallons of beer that a permit holder
receives, bottles, and packages under this clause may not
exceed the number of gallons of beer that the permit
holder produced from raw materials at the licensed
premises of the permit holder in the same calendar year.
The activity under this clause is not an interest under
IC 7.1-5-9.
(Q) Sell or transfer beer directly to a food manufacturer
located in Indiana that is registered with the federal Food
and Drug Administration for the purpose of adding or
integrating the beer into a product or recipe.
(6) If the brewer's brewery manufactures more than ninety
thousand (90,000) barrels of beer in a calendar year for sale or
distribution within Indiana, the permit holder may own a portion
of the corporate stock of another brewery that:
(A) is located in the same county as the brewer's brewery;
(B) manufactures less than ninety thousand (90,000) barrels of
beer in a calendar year; and
(C) is the proprietor of a restaurant that operates under
subdivision (5).
EH 1217—LS 6814/DI 87 22
(7) Provide complimentary samples of beer that are:
(A) produced by the brewer; and
(B) offered to consumers for consumption on the brewer's
premises.
(8) Own a portion of the corporate stock of a sports corporation
that:
(A) manages a minor league baseball stadium located in the
same county as the brewer's brewery; and
(B) holds a beer retailer's permit, a wine retailer's permit, or a
liquor retailer's permit for a restaurant located in that stadium.
(9) For beer described in IC 7.1-1-2-3(a)(4):
(A) may allow transportation to and consumption of the beer
on the licensed premises; and
(B) may not sell, offer to sell, or allow sale of the beer on the
licensed premises.
SECTION 5. IC 7.1-3-2-11 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2023]: Sec. 11. (a) A finished product of a food manufacturer
that contains beer transferred to the food manufacturer under
section 7(5)(Q) of this chapter may not contain more than one-half
of one percent (0.5%) of alcohol by volume when the product
leaves the food manufacturer's facility.
(b) Beer that is sold or transferred to a food manufacturer
under section 7(5)(Q) of this chapter shall be included within the
barrels of beer limits set forth in section 7(5)(A) of this chapter.
SECTION 6. IC 7.1-3-12-5, AS AMENDED BY P.L.194-2021,
SECTION 42, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2023]: Sec. 5. (a) The following apply to the holder of a farm
winery permit:
(1) A holder is entitled to manufacture wine and to place wine
produced by the permit holder's farm winery in bottles or other
permissible containers.
(2) A holder is entitled to serve complimentary samples of the
winery's wine on the licensed premises or an outside area that is
contiguous to the licensed premises, as approved by the
commission if each employee who serves wine on the licensed
premises:
(A) holds an employee's permit under IC 7.1-3-18-9; and
(B) completes a server training program approved by the
commission.
(3) A holder is entitled to sell the winery's wine on the licensed
premises to consumers either by:
EH 1217—LS 6814/DI 87 23
(A) the glass;
(B) the bottle;
(C) a box that contains a bag designed for storing and
dispensing wine;
(D) any combination of receptacles listed in clauses (A)
through (C); or
(E) any other container permissible under federal law.
Notwithstanding IC 7.1-1-3-20, the licensed premises may
include the farm winery parking lot or an area adjacent to the farm
winery. The parking lot or an adjacent area may only be used for
the purpose of conveying alcoholic beverages and other
nonalcoholic items to a customer subject to section 5.5 of this
chapter, and may not be used for point of sale purposes or any
other purpose.
(4) A holder is entitled to:
(A) serve complimentary samples of the winery's wine; and
(B) sell the winery's wine to consumers by the bottle;
at a farmers' market that is operated on a nonprofit basis.
(5) A holder is entitled to sell wine by:
(A) the bottle;
(B) the can;
(C) a box that contains a bag designed for storing and
dispensing wine;
(D) bulk container;
(E) the case; or
(F) any combination of receptacles listed in clauses (A)
through (E);
to a person who is the holder of a permit to sell wine at wholesale.
(6) A holder is exempt from the provisions of IC 7.1-3-14.
(7) A holder is entitled to advertise the name and address of any
retailer or dealer who sells wine produced by the permit holder's
winery.
(8) A holder for wine described in IC 7.1-1-2-3(a)(4):
(A) may allow transportation to and consumption of the wine
on the licensed premises; and
(B) may not sell, offer to sell, or allow the sale of the wine on
the licensed premises.
(9) A holder is entitled to purchase and sell bulk wine as set forth
in this chapter.
(10) A holder is entitled to sell wine as authorized by this section
for carryout on Sunday.
(11) A holder is entitled to sell and ship the farm winery's wine to
EH 1217—LS 6814/DI 87 24
a person located in another state in accordance with the laws of
the other state.
(12) A holder is entitled to sell the farm winery's wine to the
holder of a supplemental caterer's permit issued under
IC 7.1-3-9.5 for on-premises consumption only at an event that is
held outdoors on property that is contiguous to the farm winery as
approved by the commission.
(13) A holder is entitled to be the proprietor of a restaurant that is
not subject to the minimum gross food sales or the minimum
projected food sales set forth in 905 IAC 1-41-2 and the gross
retail income requirements to sell carryout under IC 7.1-3-20-9.5.
A holder is entitled to conduct the following activities:
(A) Hold a beer retailer's permit, a wine retailer's permit, or a
liquor retailer's permit for a restaurant.
(B) Transfer wine directly from the farm winery to a restaurant
that the farm winery has an interest in by means of:
(i) bottles or cans;
(ii) bulk containers; or
(iii) a continuous flow system.
(C) Install a window between the farm winery and an adjacent
restaurant that allows the public and the holder of the permit
to view both premises.
(D) Install a doorway or other opening between the farm
winery and an adjacent restaurant that provides the public and
the holder of the permit with access to both the farm winery
and restaurant.
(14) A holder that does not distribute through an Indiana wine
wholesaler is entitled under the farm winery permit to sell and
deliver to a person holding a wine retailer or wine dealer permit
under this title a total of not more than three thousand (3,000)
gallons of the farm winery's wine in a calendar year, if the farm
winery has not sold in Indiana more than fifteen thousand
(15,000) gallons the previous calendar year. A holder that sells
and delivers under this subdivision shall comply with all
provisions applicable to a wholesaler in 905 IAC 1-5.1, 905
IAC 1-5.2, 905 IAC 1-21, 905 IAC 1-31, and 905 IAC 1-32.1.
(15) A holder must annually submit to the commission copies of
its Indiana and federal excise tax returns.
(b) With the approval of the commission, a holder of a permit under
this chapter may conduct business at not more than three (3) additional
locations that are separate from the winery. At the additional locations,
the holder of a permit may conduct any business that is authorized at
EH 1217—LS 6814/DI 87 25
the first location, except for manufacturing wine or placing wine in
bottles or containers.
(c) A farm winery may transfer wine from a storage facility or an
additional location described in subsection (b). A farm winery may sell
or transfer wine directly to a wine wholesaler from a storage facility
separate from the farm winery or an additional location described in
subsection (b). A farm winery may not sell or transfer wine from a
storage facility to any other permittee or a consumer. The farm winery
shall maintain an adequate written record of wine transferred:
(1) between the farm winery and the storage facility; and
(2) from the storage facility to the wholesaler.
(d) With the approval of the commission, a holder of a permit under
this chapter may:
(1) individually; or
(2) with other permit holders under this chapter, holders of artisan
distiller's permits, holders of brewer's permits issued under
IC 7.1-3-2-2(b), or any combination of holders described in this
subdivision;
participate in a trade show or an exposition at which products of each
permit holder participant are displayed, promoted, and sold. All of the
permit holders may occupy the same tent, structure, or building. The
commission may not grant approval under this subsection to a holder
of a permit under this chapter for more than forty-five (45) days in a
calendar year.
SECTION 7. IC 7.1-3-18-9, AS AMENDED BY P.L.196-2015,
SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2023]: Sec. 9. (a) The commission may issue an employee's
permit to a person who desires to act as:
(1) a clerk in a package liquor store;
(2) an employee who serves wine at a farm winery; or
(3) a bartender, waiter, waitress, or manager in a retail
establishment, excepting dining car and boat employees; or
(4) a salon employee who serves beer or wine at a salon under
IC 7.1-3-1-31.
(b) A permit authorized by this section is conditioned upon the
compliance by the holder with reasonable rules relating to the permit
which the commission may prescribe from time to time.
(c) A permit issued under this section entitles its holder to work for
any lawful employer. However, a person may work without an
employee's permit for thirty (30) days from the date shown on a receipt
for a cashier's check or money order payable to the commission for that
person's employee's permit application.
EH 1217—LS 6814/DI 87 26
(d) A person who, for a package liquor store or retail establishment,
is:
(1) the sole proprietor;
(2) a partner, a general partner, or a limited partner in a
partnership or limited partnership that owns the business
establishment;
(3) a member of a limited liability company that owns the
business establishment; or
(4) a stockholder in a corporation that owns the business
establishment;
is not required to obtain an employee's permit in order to perform any
of the acts listed in subsection (a).
(e) An applicant may declare on the application form that the
applicant will use the employee's permit only to perform volunteer
service that benefits a nonprofit organization. It is unlawful for an
applicant who makes a declaration under this subsection to use an
employee's permit for any purpose other than to perform volunteer
service that benefits a nonprofit organization.
(f) The commission may not issue an employee's permit to an
applicant while the applicant is serving a sentence for a conviction for
operating while intoxicated, including any term of probation or parole.
(g) The commission may not issue an employee's permit to an
applicant who has two (2) unrelated convictions for operating while
intoxicated if:
(1) the first conviction occurred less than ten (10) years before the
date of the applicant's application for the permit; and
(2) the applicant completed the sentence for the second
conviction, including any term of probation or parole, less than
two (2) years before the date of the applicant's application for the
permit.
(h) If an applicant for an employee's permit has at least three (3)
unrelated convictions for operating while intoxicated in the ten (10)
years immediately preceding the date of the applicant's application for
the permit, the commission may not grant the issuance of the permit.
If, in the ten (10) years immediately preceding the date of the
applicant's application the applicant has:
(1) one (1) conviction for operating while intoxicated, and the
applicant is not subject to subsection (f); or
(2) two (2) unrelated convictions for operating while intoxicated,
and the applicant is not subject to subsection (f) or (g);
the commission may grant or deny the issuance of a permit.
(i) Except as provided under section 9.5 of this chapter, the
EH 1217—LS 6814/DI 87 27
commission shall revoke a permit issued to an employee under this
section if:
(1) the employee is convicted of a Class B misdemeanor for
violating IC 7.1-5-10-15(a); or
(2) the employee is convicted of operating while intoxicated after
the issuance of the permit.
The commission may revoke a permit issued to an employee under this
section for any violation of this title or the rules adopted by the
commission.
SECTION 8. IC 7.1-3-20-16, AS AMENDED BY P.L.104-2022,
SECTION 57, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2023]: Sec. 16. (a) A permit that is authorized by this section
may be issued without regard to the quota provisions of IC 7.1-3-22.
(b) The commission may issue a three-way permit to sell alcoholic
beverages for on-premises consumption only to an applicant who is the
proprietor, as owner or lessee, or both, of a restaurant facility in the
passenger terminal complex of a publicly owned airport. A permit
issued under this subsection shall not be transferred to a location off
the airport premises.
(c) Except as provided in sections 16.3 and 16.4 of this chapter, the
commission may issue a three-way, two-way, or one-way permit to sell
alcoholic beverages for on-premises consumption only to an applicant
who is the proprietor, as owner or lessee, or both, of a restaurant within
a redevelopment project consisting of a building or group of buildings
that:
(1) was formerly used as part of a union railway station;
(2) has been listed in or is within a district that has been listed in
the federal National Register of Historic Places maintained
pursuant to the National Historic Preservation Act of 1966, as
amended; and
(3) has been redeveloped or renovated, with the redevelopment or
renovation being funded in part with grants from the federal,
state, or local government.
A permit issued under this subsection shall not be transferred to a
location outside of the redevelopment project.
(d) Subject to section 16.1 of this chapter and except as provided in
section 16.3 of this chapter, the commission may issue a three-way,
two-way, or one-way permit to sell alcoholic beverages for on-premises
consumption only to an applicant who is the proprietor, as owner or
lessee, or both, of a restaurant:
(1) on land; or
(2) in a historic river vessel;
EH 1217—LS 6814/DI 87 28
within a municipal riverfront development project funded in part with
state and city money. The ownership of a permit issued under this
subsection and the location for which the permit was issued may not be
transferred. The legislative body of the municipality in which the
municipal riverfront development project is located shall recommend
to the commission sites that are eligible to be permit premises. The
commission shall consider, but is not required to follow, the municipal
legislative body's recommendation in issuing a permit under this
subsection. A permit holder and any lessee or proprietor of the permit
premises are subject to the formal written commitment required under
IC 7.1-3-19-17. Notwithstanding IC 7.1-3-1-3.5 and IC 7.1-3-1.1, if
business operations cease at the permit premises for more than six (6)
months, the permit shall revert to the commission. The permit holder
is not entitled to any refund or other compensation.
(e) Except as provided in sections 16.3 and 16.4 of this chapter, the
commission may issue a three-way, two-way, or one-way permit to sell
alcoholic beverages for on-premises consumption only to an applicant
who is the proprietor, as owner or lessee, or both, of a restaurant within
a renovation project consisting of:
(1) a building that:
(A) was formerly used as part of a passenger and freight
railway station; and
(B) was built before 1900; or
(2) a complex of buildings that:
(A) is part of an economic development area established under
IC 36-7-14; and
(B) includes, as part of the renovation project, the use and
repurposing of two (2) or more buildings and structures that
are:
(i) at least seventy-five (75) years old; and
(ii) located at a site at which manufacturing previously
occurred over a period of at least seventy-five (75) years.
The permit authorized by this subsection may be issued without regard
to the proximity provisions of IC 7.1-3-21-11.
(f) Except as provided in section 16.3 of this chapter, the
commission may issue a three-way permit for the sale of alcoholic
beverages for on-premises consumption at a cultural center for the
visual and performing arts to the following:
(1) A town having a population of more than twenty-three
thousand (23,000) and less than twenty-three thousand nine
hundred (23,900) located in a county having a population of more
than four hundred thousand (400,000) and less than seven
EH 1217—LS 6814/DI 87 29
hundred thousand (700,000).
(2) A city that has an indoor theater as described in section 26 of
this chapter.
(g) Except as provided in section 16.3 of this chapter, the
commission may issue not more than ten (10) fifteen (15) new
three-way, two-way, or one-way permits to sell alcoholic beverages for
on-premises consumption to applicants, each of whom must be the
proprietor, as owner or lessee, or both, of a restaurant located within a
district, or not more than seven hundred (700) one thousand five
hundred (1,500) feet from a district, that meets the following
requirements:
(1) The district has been listed in the National Register of Historic
Places maintained under the National Historic Preservation Act
of 1966, as amended.
(2) A county courthouse is located within the district.
(3) A historic opera house listed on the National Register of
Historic Places is located within the district.
(4) A historic jail and sheriff's house listed on the National
Register of Historic Places is located within the district.
The legislative body of the municipality in which the district is located
shall recommend to the commission sites that are eligible to be permit
premises. The commission shall consider, but is not required to follow,
the municipal legislative body's recommendation in issuing a permit
under this subsection. An applicant is not eligible for a permit if, less
than two (2) years before the date of the application, the applicant sold
a retailer's permit that was subject to IC 7.1-3-22 and that was for
premises located within the district described in this section or within
seven hundred (700) one thousand five hundred (1,500) feet of the
district. The ownership of a permit issued under this subsection and the
location for which the permit was issued shall not be transferred. A
permit holder and any lessee or proprietor of the permit premises is
subject to the formal written commitment required under
IC 7.1-3-19-17. Notwithstanding IC 7.1-3-1-3.5 and IC 7.1-3-1.1, if
business operations cease at the permit premises for more than six (6)
months, the permit shall revert to the commission. The permit holder
is not entitled to any refund or other compensation. The total number
of active permits issued under this subsection may not exceed ten (10)
fifteen (15) at any time. The cost of an initial permit issued under this
subsection is six thousand dollars ($6,000). twenty-five thousand
dollars ($25,000).
(h) Except as provided in section 16.3 of this chapter, the
commission may issue a three-way permit for the sale of alcoholic
EH 1217—LS 6814/DI 87 30
beverages for on-premises consumption to an applicant who will locate
as the proprietor, as owner or lessee, or both, of a restaurant within an
economic development area under IC 36-7-14 in:
(1) a town having a population of more than twenty thousand
(20,000); or
(2) a city having a population of more than forty-nine thousand
four hundred (49,400) and less than fifty thousand (50,000);
located in a county having a population of more than one hundred
twenty thousand (120,000) and less than one hundred thirty thousand
(130,000). The commission may issue not more than five (5) licenses
under this section to premises within a municipality described in
subdivision (1) and not more than five (5) licenses to premises within
a municipality described in subdivision (2). The commission shall
conduct an auction of the permits under IC 7.1-3-22-9, except that the
auction may be conducted at any time as determined by the
commission. Notwithstanding any other law, the minimum bid for an
initial license under this subsection is thirty-five thousand dollars
($35,000), and the renewal fee for a license under this subsection is one
thousand three hundred fifty dollars ($1,350). Before the district
expires, a permit issued under this subsection may not be transferred.
After the district expires, a permit issued under this subsection may be
renewed, and the ownership of the permit may be transferred, but the
permit may not be transferred from the permit premises.
(i) After June 30, 2006, and except as provided in section 16.3 of
this chapter, the commission may issue not more than five (5) new
three-way, two-way, or one-way permits to sell alcoholic beverages for
on-premises consumption to applicants, each of whom must be the
proprietor, as owner or lessee, or both, of a restaurant located within a
district, or not more than five hundred (500) feet from a district, that
meets all of the following requirements:
(1) The district is within an economic development area, an area
needing redevelopment, or a redevelopment district as established
under IC 36-7-14.
(2) A unit of the National Park Service is partially located within
the district.
(3) An international deep water seaport is located within the
district.
An applicant is not eligible for a permit under this subsection if, less
than two (2) years before the date of the application, the applicant sold
a retailers' permit that was subject to IC 7.1-3-22 and that was for
premises located within the district described in this subsection or
within five hundred (500) feet of the district. A permit issued under this
EH 1217—LS 6814/DI 87 31
subsection may not be transferred. If the commission issues five (5)
new permits under this subsection, and a permit issued under this
subsection is later revoked or is not renewed, the commission may
issue another new permit, as long as the total number of active permits
issued under this subsection does not exceed five (5) at any time. The
commission shall conduct an auction of the permits under
IC 7.1-3-22-9, except that the auction may be conducted at any time as
determined by the commission.
(j) Subject to section 16.2 of this chapter and except as provided in
section 16.3 of this chapter, the commission may issue not more than
six (6) new three-way, two-way, or one-way permits to sell alcoholic
beverages for on-premises consumption only to an applicant who is the
proprietor, as owner or lessee, or both, of a restaurant on land within a
municipal lakefront development project. A permit issued under this
subsection may not be transferred. If the commission issues six (6) new
permits under this subsection, and a permit issued under this subsection
is later revoked or is not renewed, the commission may issue another
new permit, as long as the total number of active permits issued under
this subsection does not exceed six (6) at any time. The commission
shall conduct an auction of the permits under IC 7.1-3-22-9, except that
the auction may be conducted at any time as determined by the
commission. Notwithstanding any other law, the minimum bid for an
initial permit under this subsection is ten thousand dollars ($10,000).
(k) Except as provided in section 16.3 of this chapter, the
commission may issue not more than nine (9) new three-way permits
to sell alcoholic beverages for on-premises consumption to applicants,
each of whom must be a proprietor, as owner or lessee, or both, of a
restaurant located:
(1) within a motorsports investment district (as defined in
IC 5-1-17.5-11); or
(2) not more than one thousand five hundred (1,500) feet from a
motorsports investment district.
The ownership of a permit issued under this subsection and the location
for which the permit was issued shall not be transferred. If the
commission issues nine (9) new permits under this subsection, and a
permit issued under this subsection is later revoked or is not renewed,
the commission may issue another new permit, as long as the total
number of active permits issued under this subsection does not exceed
nine (9) at any time. A permit holder and any lessee or proprietor of the
permit premises are subject to the formal written commitment required
under IC 7.1-3-19-17. Notwithstanding IC 7.1-3-1-3.5 and IC 7.1-3-1.1,
if business operations cease at the permit premises for more than six
EH 1217—LS 6814/DI 87 32
(6) months, the permit shall revert to the commission. The permit
holder is not entitled to any refund or other compensation.
(l) Except as provided in section 16.3 of this chapter, the
commission may issue not more than two (2) new three-way permits to
sell alcoholic beverages for on-premises consumption for premises
located within a qualified motorsports facility (as defined in
IC 5-1-17.5-14). The ownership of a permit issued under this
subsection and the location for which the permit was issued shall not
be transferred. If the commission issues two (2) new permits under this
subsection, and a permit issued under this subsection is later revoked
or is not renewed, the commission may issue another new permit, as
long as the total number of active permits issued under this subsection
does not exceed two (2) at any time. A permit holder and any lessee or
proprietor of the permit premises are subject to the formal written
commitment required under IC 7.1-3-19-17. Notwithstanding
IC 7.1-3-1-3.5 and IC 7.1-3-1.1, if business operations cease at the
permit premises for more than six (6) months, the permit shall revert
to the commission. The permit holder is not entitled to any refund or
other compensation.
SECTION 9. IC 7.1-3-27-3, AS AMENDED BY P.L.159-2014,
SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2023]: Sec. 3. (a) An artisan distiller may produce not more
than ten twenty thousand (10,000) (20,000) gallons of liquor in any
calendar year. Liquor produced by an artisan distiller that is sold
through a wholesaler licensed under IC 7.1-3-8 may not be counted
toward the gallonage limit.
(b) An artisan distiller who knowingly or intentionally violates this
section commits a Class B misdemeanor.
SECTION 10. IC 7.1-3-27-8, AS AMENDED BY P.L.194-2021,
SECTION 59, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2023]: Sec. 8. (a) The holder of an artisan distiller's permit
may do only the following:
(1) Manufacture liquor, including blending using liquor
purchased from another manufacturer with liquor the artisan
distiller manufactures under section 11 of this chapter.
(2) Bottle liquor manufactured by the artisan distiller.
(3) Insert liquor manufactured by the artisan distiller into a
container.
(4) Store liquor manufactured by the artisan distiller, including at
a facility located within ten (10) miles of the artisan distiller's
distillery.
(5) Transport, sell, and deliver liquor manufactured by the artisan
EH 1217—LS 6814/DI 87 33
distiller to:
(A) places outside Indiana; or
(B) the holder of a liquor wholesaler's permit under IC 7.1-3-8.
(6) Sell liquor manufactured by the artisan distiller to consumers
by the drink, bottle, container, or case from the licensed premises
of the distillery where the liquor was manufactured.
Notwithstanding IC 7.1-1-3-20, the licensed premises may
include the distillery parking lot or an area adjacent to the artisan
distillery. The parking lot or adjacent area may only be used for
the purpose of conveying alcoholic beverages and other
nonalcoholic items to a customer subject to section 8.1 of this
chapter and may not be used for point of sale purposes or any
other purpose.
(7) Serve complimentary samples of the liquor manufactured by
the artisan distiller to consumers on the premises of the distillery
where the liquor was manufactured.
(8) Sell liquor as authorized by this section for carryout on
Sunday in a quantity at any one (1) time of not more than four and
five-tenths (4.5) liters.
(9) With the approval of the commission, participate:
(A) individually; or
(B) with other permit holders under this chapter, holders of
farm winery permits, holders of brewer's permits issued under
IC 7.1-3-2-2(b), or any combination of holders described in
this clause;
in a trade show or an exposition at which products of each permit
holder participant are displayed, promoted, and sold. All of the
permit holders may occupy the same tent, structure, or building.
The commission may not grant to a holder of a permit under this
chapter approval under this subdivision to participate in a trade
show or exposition for more than forty-five (45) days in a
calendar year.
(10) Be the proprietor of a restaurant that is not subject to the
minimum gross food sales or the minimum projected food sales
set forth in 905 IAC 1-41-2 and the gross retail income
requirements to sell carryout under IC 7.1-3-20-9.5. A holder is
entitled to conduct the following activities:
(A) Hold a beer retailer's permit, a wine retailer's permit, or a
liquor retailer's permit for a restaurant.
(B) Transfer liquor directly from the artisan distillery to a
restaurant that the artisan distiller has an interest in by means
of:
EH 1217—LS 6814/DI 87 34
(i) bottles;
(ii) bulk containers; or
(iii) a continuous flow system.
(C) Install a window between the artisan distillery and an
adjacent restaurant that allows the public and the holder of the
permit to view both premises.
(D) Install a doorway or other opening between the artisan
distillery and an adjacent restaurant that provides the public
and the holder of the permit with access to both the artisan
distillery and restaurant.
(11) A holder that does not distribute through an Indiana liquor
wholesaler is entitled under the artisan distiller's permit to sell and
deliver to a person holding a liquor retailer or liquor dealer permit
under this title a total of not more than one thousand (1,000)
gallons of the artisan distillery's liquor in a calendar year, if the
artisan distiller has not sold in Indiana more than nine thousand
(9,000) gallons the previous calendar year. A holder that sells and
delivers under this subdivision shall comply with all provisions
applicable to a wholesaler in 905 IAC 1-5.1, 905 IAC 1-5.2, 905
IAC 1-21, 905 IAC 1-31, and 905 IAC 1-32.1.
(12) A holder must annually submit to the commission copies of
its Indiana and federal excise tax returns.
(b) The holder of an artisan distiller's permit who provides samples
or sells liquor by the glass must furnish the minimum food
requirements prescribed by the commission.
(c) A storage facility used by an artisan distiller under subsection
(a)(4) must conform with federal laws, rules, and regulations. An
artisan distiller may transfer liquor from a separate storage facility back
to the artisan distillery. An artisan distiller may sell or transfer liquor
directly to a liquor wholesaler from a storage facility that is separate
from the artisan distillery. An artisan distiller may not sell or transfer
liquor from a storage facility to any other permittee or a consumer. The
artisan distiller shall maintain an adequate written record of the liquor
transferred:
(1) between the artisan distillery and the storage facility; and
(2) from the storage facility to the liquor wholesaler.
(d) The holder of an artisan distiller's permit may transport liquor to
and from a brewery located within the same county for the purposes of
carbonating and canning by the brewery. The activity under this
subsection is not an interest under IC 7.1-5-9.
(e) An artisan distiller who knowingly or intentionally violates this
section commits a Class B misdemeanor.
EH 1217—LS 6814/DI 87 35
SECTION 11. IC 7.1-3-27-11, AS AMENDED BY P.L.159-2014,
SECTION 13, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2023]: Sec. 11. (a) An artisan distiller may obtain and use
blend liquor that the artisan distiller obtains from another manufacturer
with liquor that the artisan distiller manufactures. The artisan distiller
may sell the blended liquor as liquor that the artisan distiller
manufactures only if the final product contains at least sixty percent
(60%) of liquor that was fermented and distilled from raw materials by
the artisan distiller at the licensed premises of the artisan distiller. in
the manner permitted by this section.
(b) Subject to subsection (c), an artisan distiller may use in a
calendar year not more than ten thousand (10,000) gallons of
liquor that the artisan distiller obtains from another manufacturer.
(c) The number of gallons of liquor that the artisan distiller
obtains and uses from another manufacturer in a calendar year
may not exceed the number of gallons of liquor that the artisan
distiller fermented and distilled from raw materials at the licensed
premises of the artisan distiller in the same calendar year.
(b) (d) An artisan distiller who knowingly or intentionally sells
blended liquor that contains less than sixty percent (60%) of liquor that
was fermented and distilled from raw materials by the artisan distiller
at the licensed premises of the artisan distiller violates subsection (b)
or (c), as applicable, commits a Class B misdemeanor.
SECTION 12. IC 7.1-5-3-1, AS AMENDED BY P.L.79-2015,
SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2023]: Sec. 1. (a) This section does not apply to the following:
(1) An establishment where alcoholic beverages are sold that is
owned, in whole or part, by an entity that holds a brewer's permit
issued under IC 7.1-3-2-2(b).
(2) An establishment where alcoholic beverages are sold that is
owned, in whole or part, by a statewide trade organization
consisting of members, each of whom holds a brewer's permit
issued under IC 7.1-3-2-2(b).
(3) Beer that is bottled and packaged under IC 7.1-3-2-7(5)(P).
(b) Except as provided in section 6 of this chapter, it is unlawful to
sell beer in this state at retail in a bottle, can, or other container, unless
the bottle, can, or other container was packaged and sealed by the
brewer at the brewer's bottling house contiguous or adjacent to the
brewery in which the beer was produced.
(c) A person who knowingly or intentionally violates subsection (b)
commits a Class B misdemeanor.
SECTION 13. IC 7.1-5-7-11, AS AMENDED BY P.L.105-2022,
EH 1217—LS 6814/DI 87 36
SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2023]: Sec. 11. (a) The provisions of sections 9 and 10 of this
chapter shall not apply if the public place involved is one (1) of the
following:
(1) Civic center.
(2) Convention center.
(3) Sports arena.
(4) Bowling center.
(5) Bona fide club.
(6) Drug store.
(7) Grocery store.
(8) Boat.
(9) Dining car.
(10) Pullman car.
(11) Club car.
(12) Passenger airplane.
(13) Horse racetrack facility holding a recognized meeting permit
under IC 4-31-5.
(14) Satellite facility (as defined in IC 4-31-2.1-36).
(15) Catering hall under IC 7.1-3-20-24 that is not open to the
public.
(16) That part of a restaurant which is separate from a room in
which is located a bar over which alcoholic beverages are sold or
dispensed by the drink.
(17) Entertainment complex.
(18) Indoor golf facility.
(19) A recreational facility such as a golf course, bowling center,
or similar facility that has the recreational activity and not the sale
of food and beverages as the principal purpose or function of the
person's business.
(20) A licensed premises owned or operated by a postsecondary
educational institution described in IC 21-17-6-1.
(21) An automobile racetrack.
(22) An indoor theater under IC 7.1-3-20-26.
(23) A senior residence facility campus (as defined in
IC 7.1-3-1-29(c)) at which alcoholic beverages are given or
furnished as provided under IC 7.1-3-1-29.
(24) A hotel other than a part of a hotel that is a room in a
restaurant in which a bar is located over which alcoholic
beverages are sold or dispensed by the drink.
(25) The location of an allowable event to which IC 7.1-3-6.1
applies.
EH 1217—LS 6814/DI 87 37
(26) The location of a charity auction to which IC 7.1-3-6.2
applies.
(27) A tour of a brewery as provided in IC 7.1-3-20-16.4, if the
minor is in the company of a parent, legal guardian or custodian,
or family member who is at least twenty-one (21) years of age.
(28) A farm winery and any additional locations of the farm
winery under IC 7.1-3-12, if the minor is in the company of a
parent, legal guardian or custodian, or family member who is at
least twenty-one (21) years of age and the minor is accompanied
by the adult in any area that the adult may be present whether or
not the area:
(A) is separated in any manner from where the wine is
manufactured, sold, or consumed within the farm winery
premises; or
(B) operates under a retailer's permit.
(29) An artisan distillery under IC 7.1-3-27, if:
(A) the person who holds the artisan distiller's permit also
holds a farm winery permit under IC 7.1-3-12, or
IC 7.1-3-20-16.4(a) applies to the person; and
(B) the minor is in the company of a parent, legal guardian or
custodian, or family member who is at least twenty-one (21)
years of age.
(30) An art instruction studio under IC 7.1-5-8-4.6.
(31) The licensed premises of a food hall under IC 7.1-3-20-29
and the food and beverage vending space of a food hall vendor
permittee under IC 7.1-3-20-30. However, sections 9 and 10 of
this chapter apply to a bar within the food and beverage vending
space of a food hall vendor permittee under IC 7.1-3-20-30 that
serves alcoholic beverages intended to be consumed while sitting
or standing at the bar.
(32) A beauty culture salon licensed under IC 25-8-7 at which
wine and beer are given or furnished as provided under
IC 7.1-3-1-31.
(b) For the purpose of this subsection, "food" means meals prepared
on the licensed premises. It is lawful for a minor to be on licensed
premises in a room in which is located a bar over which alcoholic
beverages are sold or dispensed by the drink if all the following
conditions are met:
(1) The minor is eighteen (18) years of age or older.
(2) The minor is in the company of a parent, guardian, or family
member who is twenty-one (21) years of age or older.
(3) The purpose for being on the licensed premises is the
EH 1217—LS 6814/DI 87 38
consumption of food and not the consumption of alcoholic
beverages.".
Renumber all SECTIONS consecutively.
and when so amended that said bill do pass.
(Reference is to HB 1217 as introduced.)
MANNING
Committee Vote: yeas 13, nays 0.
_____
COMMITTEE REPORT
Madam President: The Senate Committee on Public Policy, to which
was referred House Bill No. 1217, has had the same under
consideration and begs leave to report the same back to the Senate with
the recommendation that said bill be AMENDED as follows:
Page 3, line 12, after "(4)" delete "Notwithstanding any other
provision of this title, a" and insert "A".
Page 3, line 13, after "supply" insert ", manufacturer,".
Page 3, line 13, delete "allow a permittee" and insert "supply
equipment on a temporary and nondiscriminatory basis to the
holder of a retailer permit or a temporary permit for the purpose
of holding, storing, and dispensing product to consumers for a
special event for the duration of the special event. Ownership of the
equipment shall remain with the primary source of supply,
manufacturer, or wholesaler.".
Page 3, delete lines 14 through 32.
Page 4, line 1, after "breweries" insert ",".
Page 4, line 2, strike "located in Indiana,".
Page 6, line 13, delete "holder." and insert "holder who
manufactured the beer.".
Page 6, line 14, delete "gallons" and insert "barrels".
Page 6, line 16, delete "gallons" and insert "barrels".
Page 7, delete lines 17 through 42.
Delete pages 8 through 11.
Page 17, between lines 10 and 11, begin a new paragraph and insert:
"SECTION 6. IC 7.1-3-20-16.8, AS AMENDED BY P.L.285-2019,
SECTION 36, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2023]: Sec. 16.8. (a) A permit that is authorized by this
EH 1217—LS 6814/DI 87 39
section may be issued without regard to the quota provisions of
IC 7.1-3-22.
(b) Except as provided in section 16.3 of this chapter, the
commission may issue not more than four (4) new three-way permits
to sell alcoholic beverages for on-premises consumption to applicants
in each of the following municipalities:
(1) Whitestown.
(2) (1) Lebanon.
(3) (2) Zionsville.
(4) (3) Westfield.
(5) (4) Carmel.
(6) (5) Fishers.
(c) The following apply to permits issued under this section
subsection (b):
(1) An applicant for a permit under this section subsection (b)
must be a proprietor, as owner or lessee, or both, of a restaurant
located within an economic development area, an area needing
redevelopment, or a redevelopment district as established under
IC 36-7-14 in a municipality's:
(A) downtown redevelopment district; or
(B) downtown economic revitalization area.
(2) The cost of an initial permit is forty thousand dollars
($40,000).
(3) The total number of active permits issued under this section
subsection (b) may not exceed twenty-four (24) twenty (20)
permits at any time. If any of the permits issued under this section
subsection (b) are revoked or not renewed, the commission may
issue only enough new permits to bring the total number of
permits to twenty-four (24) twenty (20) active permits, with not
more than four (4) in each municipality listed in subsection (b)(1)
through (b)(6) (b)(5).
(4) The municipality may adopt an ordinance under
IC 7.1-3-19-17 requiring a permit holder to enter into a formal
written commitment as a condition of eligibility for a permit. As
set forth in IC 7.1-3-19-17(b), a formal written commitment is
binding on the permit holder and on any lessee or proprietor of
the permit premises.
(5) Notwithstanding IC 7.1-3-1-3.5 and IC 7.1-3-1.1, if business
operations cease at the permit premises for more than six (6)
months, the permit shall revert to the commission and the permit
holder is not entitled to any refund or other compensation.
(6) Except as provided in subdivision (8), the ownership of a
EH 1217—LS 6814/DI 87 40
permit may not be transferred.
(7) A permit may not be transferred from the premises for which
the permit was issued.
(8) If the area in which the permit premises is located is no longer
designated an economic development area, an area needing
redevelopment, or a redevelopment district, a permit issued under
this section may be renewed, and the ownership of the permit may
be transferred, but the permit may not be transferred from the
permit premises.
(d) Except as provided in section 16.3 of this chapter, the
commission may issue not more than the following to the town of
Whitestown:
(1) Three (3) new three-way permits.
(2) Three (3) new two-way permits.
(3) One (1) new liquor dealer's permit.
(e) The following apply to permits issued under subsection (d):
(1) An applicant for a permit under subsection (d)(1) or (d)(2)
must be a proprietor, as owner or lessee, or both, of a
restaurant located within an economic development area, an
area needing redevelopment, or a redevelopment district as
established under IC 36-7-14 in a municipality's:
(A) downtown redevelopment district; or
(B) downtown economic revitalization area.
(2) The cost of an initial permit is forty thousand dollars
($40,000).
(3) The total number of active permits issued under
subsection (d) may not exceed seven (7) permits at any time.
(4) The municipality may adopt an ordinance under
IC 7.1-3-19-17 requiring a permit holder to enter into a
formal written commitment as a condition of eligibility for a
permit. As set forth in IC 7.1-3-19-17(b), a formal written
commitment is binding on the permit holder and on any lessee
or proprietor of the permit premises.
(5) Notwithstanding IC 7.1-3-1-3.5 and IC 7.1-3-1.1, if
business operations cease at the permit premises for more
than six (6) months, the permit shall revert to the commission
and the permit holder is not entitled to any refund or other
compensation.
(6) Except as provided in subdivision (8), the ownership of a
permit may not be transferred.
(7) A permit may not be transferred from the premises for
which the permit was issued.
EH 1217—LS 6814/DI 87 41
(8) If the area in which the permit issued to a premises under
subsection (d)(1) or (d)(2) is located is no longer designated an
economic development area, an area needing redevelopment,
or a redevelopment district, a permit issued under this section
may be renewed, and the ownership of the permit may be
transferred, but the permit may not be transferred from the
permit premises.
SECTION 7. IC 7.1-3-22-4.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2023]: Sec. 4.5. (a) As used in this section,
"eligible grocery store" means a grocery store (as defined in
IC 7.1-1-3-18.5(a)(1)) that meets the following criteria:
(1) Is operated in a consolidated city.
(2) Was established in whole or in part through a food
empowerment pilot project authorized under P.L.165-2021,
SECTION 6 and awarded to a nonprofit corporation for the
benefit of establishing the grocery store.
(3) Operates with less than eighteen thousand (18,000) square
feet of building space.
(4) Provides access to fresh and healthy foods to individuals
in a low income area where access to resources for fresh and
healthy food, particularly fresh fruits and vegetables and
fresh meat, poultry, and fish, is limited.
(b) The commission shall issue a beer dealer's permit and a wine
dealer's permit to an eligible grocery store without regard to the
quota provisions of this chapter.
(c) A permit issued under this section is subject to the following:
(1) A permit issued under this section may be renewed, and
the ownership of the permit may be transferred, but the
permit may not be transferred from the permit premises.
(2) Notwithstanding IC 7.1-3-1.1, if the premises ceases to
qualify as an eligible grocery store for more than six (6)
months, the permit shall revert to the commission and the
permit holder is not entitled to any refund or other
compensation.".
Page 17, delete lines 20 through 42
Delete pages 18 through 19.
Page 20, delete lines 1 through 14.
Page 22, delete lines 22 through 24.
Page 22, strike line 30.
Page 22, line 31, strike "(2)" and insert "(1)".
Page 22, line 33, strike "(3)" and insert "(2)".
EH 1217—LS 6814/DI 87 42
Page 22, after line 35, begin a new line block indented and insert:
"(3) The minor, accompanied by the parent, guardian, or
family member who is twenty-one (21) years of age or older,
must be seated at a table or booth in the bar area and shall
not be seated at the bar over which alcoholic beverages are
sold or dispensed by the drink.".
Renumber all SECTIONS consecutively.
and when so amended that said bill do pass.
(Reference is to HB 1217 as printed February 14, 2023.)
ALTING, Chairperson
Committee Vote: Yeas 8, Nays 0.
EH 1217—LS 6814/DI 87