Introduced Version HOUSE BILL No. 1419 _____ DIGEST OF INTRODUCED BILL Citations Affected: IC 7.1-3-20-16. Synopsis: Historic district restaurant permits. Increases, within a certain historic district, the number of alcoholic beverage restaurant permits from 10 to 15, and changes certain other requirements. Effective: July 1, 2023. Soliday January 17, 2023, read first time and referred to Committee on Public Policy. 2023 IN 1419—LS 6647/DI 87 Introduced 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. HOUSE BILL No. 1419 A BILL FOR AN ACT to amend the Indiana Code concerning alcohol and tobacco. Be it enacted by the General Assembly of the State of Indiana: 1 SECTION 1. IC 7.1-3-20-16, AS AMENDED BY P.L.104-2022, 2 SECTION 57, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE 3 JULY 1, 2023]: Sec. 16. (a) A permit that is authorized by this section 4 may be issued without regard to the quota provisions of IC 7.1-3-22. 5 (b) The commission may issue a three-way permit to sell alcoholic 6 beverages for on-premises consumption only to an applicant who is the 7 proprietor, as owner or lessee, or both, of a restaurant facility in the 8 passenger terminal complex of a publicly owned airport. A permit 9 issued under this subsection shall not be transferred to a location off 10 the airport premises. 11 (c) Except as provided in sections 16.3 and 16.4 of this chapter, the 12 commission may issue a three-way, two-way, or one-way permit to sell 13 alcoholic beverages for on-premises consumption only to an applicant 14 who is the proprietor, as owner or lessee, or both, of a restaurant within 15 a redevelopment project consisting of a building or group of buildings 16 that: 17 (1) was formerly used as part of a union railway station; 2023 IN 1419—LS 6647/DI 87 2 1 (2) has been listed in or is within a district that has been listed in 2 the federal National Register of Historic Places maintained 3 pursuant to the National Historic Preservation Act of 1966, as 4 amended; and 5 (3) has been redeveloped or renovated, with the redevelopment or 6 renovation being funded in part with grants from the federal, 7 state, or local government. 8 A permit issued under this subsection shall not be transferred to a 9 location outside of the redevelopment project. 10 (d) Subject to section 16.1 of this chapter and except as provided in 11 section 16.3 of this chapter, the commission may issue a three-way, 12 two-way, or one-way permit to sell alcoholic beverages for on-premises 13 consumption only to an applicant who is the proprietor, as owner or 14 lessee, or both, of a restaurant: 15 (1) on land; or 16 (2) in a historic river vessel; 17 within a municipal riverfront development project funded in part with 18 state and city money. The ownership of a permit issued under this 19 subsection and the location for which the permit was issued may not be 20 transferred. The legislative body of the municipality in which the 21 municipal riverfront development project is located shall recommend 22 to the commission sites that are eligible to be permit premises. The 23 commission shall consider, but is not required to follow, the municipal 24 legislative body's recommendation in issuing a permit under this 25 subsection. A permit holder and any lessee or proprietor of the permit 26 premises are subject to the formal written commitment required under 27 IC 7.1-3-19-17. Notwithstanding IC 7.1-3-1-3.5 and IC 7.1-3-1.1, if 28 business operations cease at the permit premises for more than six (6) 29 months, the permit shall revert to the commission. The permit holder 30 is not entitled to any refund or other compensation. 31 (e) Except as provided in sections 16.3 and 16.4 of this chapter, the 32 commission may issue a three-way, two-way, or one-way permit to sell 33 alcoholic beverages for on-premises consumption only to an applicant 34 who is the proprietor, as owner or lessee, or both, of a restaurant within 35 a renovation project consisting of: 36 (1) a building that: 37 (A) was formerly used as part of a passenger and freight 38 railway station; and 39 (B) was built before 1900; or 40 (2) a complex of buildings that: 41 (A) is part of an economic development area established under 42 IC 36-7-14; and 2023 IN 1419—LS 6647/DI 87 3 1 (B) includes, as part of the renovation project, the use and 2 repurposing of two (2) or more buildings and structures that 3 are: 4 (i) at least seventy-five (75) years old; and 5 (ii) located at a site at which manufacturing previously 6 occurred over a period of at least seventy-five (75) years. 7 The permit authorized by this subsection may be issued without regard 8 to the proximity provisions of IC 7.1-3-21-11. 9 (f) Except as provided in section 16.3 of this chapter, the 10 commission may issue a three-way permit for the sale of alcoholic 11 beverages for on-premises consumption at a cultural center for the 12 visual and performing arts to the following: 13 (1) A town having a population of more than twenty-three 14 thousand (23,000) and less than twenty-three thousand nine 15 hundred (23,900) located in a county having a population of more 16 than four hundred thousand (400,000) and less than seven 17 hundred thousand (700,000). 18 (2) A city that has an indoor theater as described in section 26 of 19 this chapter. 20 (g) Except as provided in section 16.3 of this chapter, the 21 commission may issue not more than ten (10) fifteen (15) new 22 three-way, two-way, or one-way permits to sell alcoholic beverages for 23 on-premises consumption to applicants, each of whom must be the 24 proprietor, as owner or lessee, or both, of a restaurant located within a 25 district, or not more than seven hundred (700) one thousand five 26 hundred (1,500) feet from a district, that meets the following 27 requirements: 28 (1) The district has been listed in the National Register of Historic 29 Places maintained under the National Historic Preservation Act 30 of 1966, as amended. 31 (2) A county courthouse is located within the district. 32 (3) A historic opera house listed on the National Register of 33 Historic Places is located within the district. 34 (4) A historic jail and sheriff's house listed on the National 35 Register of Historic Places is located within the district. 36 The legislative body of the municipality in which the district is located 37 shall recommend to the commission sites that are eligible to be permit 38 premises. The commission shall consider, but is not required to follow, 39 the municipal legislative body's recommendation in issuing a permit 40 under this subsection. An applicant is not eligible for a permit if, less 41 than two (2) years before the date of the application, the applicant sold 42 a retailer's permit that was subject to IC 7.1-3-22 and that was for 2023 IN 1419—LS 6647/DI 87 4 1 premises located within the district described in this section or within 2 seven hundred (700) one thousand five hundred (1,500) feet of the 3 district. The ownership of a permit issued under this subsection and the 4 location for which the permit was issued shall not be transferred. A 5 permit holder and any lessee or proprietor of the permit premises is 6 subject to the formal written commitment required under 7 IC 7.1-3-19-17. 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 than six (6) 9 months, the permit shall revert to the commission. The permit holder 10 is not entitled to any refund or other compensation. The total number 11 of active permits issued under this subsection may not exceed ten (10) 12 fifteen (15) at any time. The cost of an initial permit issued under this 13 subsection is six thousand dollars ($6,000). twenty-five thousand 14 dollars ($25,000). 15 (h) Except as provided in section 16.3 of this chapter, the 16 commission may issue a three-way permit for the sale of alcoholic 17 beverages for on-premises consumption to an applicant who will locate 18 as the proprietor, as owner or lessee, or both, of a restaurant within an 19 economic development area under IC 36-7-14 in: 20 (1) a town having a population of more than twenty thousand 21 (20,000); or 22 (2) a city having a population of more than forty-nine thousand 23 four hundred (49,400) and less than fifty thousand (50,000); 24 located in a county having a population of more than one hundred 25 twenty thousand (120,000) and less than one hundred thirty thousand 26 (130,000). The commission may issue not more than five (5) licenses 27 under this section to premises within a municipality described in 28 subdivision (1) and not more than five (5) licenses to premises within 29 a municipality described in subdivision (2). The commission shall 30 conduct an auction of the permits under IC 7.1-3-22-9, except that the 31 auction may be conducted at any time as determined by the 32 commission. Notwithstanding any other law, the minimum bid for an 33 initial license under this subsection is thirty-five thousand dollars 34 ($35,000), and the renewal fee for a license under this subsection is one 35 thousand three hundred fifty dollars ($1,350). Before the district 36 expires, a permit issued under this subsection may not be transferred. 37 After the district expires, a permit issued under this subsection may be 38 renewed, and the ownership of the permit may be transferred, but the 39 permit may not be transferred from the permit premises. 40 (i) After June 30, 2006, and except as provided in section 16.3 of 41 this chapter, the commission may issue not more than five (5) new 42 three-way, two-way, or one-way permits to sell alcoholic beverages for 2023 IN 1419—LS 6647/DI 87 5 1 on-premises consumption to applicants, each of whom must be the 2 proprietor, as owner or lessee, or both, of a restaurant located within a 3 district, or not more than five hundred (500) feet from a district, that 4 meets all of the following requirements: 5 (1) The district is within an economic development area, an area 6 needing redevelopment, or a redevelopment district as established 7 under IC 36-7-14. 8 (2) A unit of the National Park Service is partially located within 9 the district. 10 (3) An international deep water seaport is located within the 11 district. 12 An applicant is not eligible for a permit under this subsection if, less 13 than two (2) years before the date of the application, the applicant sold 14 a retailers' permit that was subject to IC 7.1-3-22 and that was for 15 premises located within the district described in this subsection or 16 within five hundred (500) feet of the district. A permit issued under this 17 subsection may not be transferred. If the commission issues five (5) 18 new permits under this subsection, and a permit issued under this 19 subsection is later revoked or is not renewed, the commission may 20 issue another new permit, as long as the total number of active permits 21 issued under this subsection does not exceed five (5) at any time. The 22 commission shall conduct an auction of the permits under 23 IC 7.1-3-22-9, except that the auction may be conducted at any time as 24 determined by the commission. 25 (j) Subject to section 16.2 of this chapter and except as provided in 26 section 16.3 of this chapter, the commission may issue not more than 27 six (6) new three-way, two-way, or one-way permits to sell alcoholic 28 beverages for on-premises consumption only to an applicant who is the 29 proprietor, as owner or lessee, or both, of a restaurant on land within a 30 municipal lakefront development project. A permit issued under this 31 subsection may not be transferred. If the commission issues six (6) new 32 permits under this subsection, and a permit issued under this subsection 33 is later revoked or is not renewed, the commission may issue another 34 new permit, as long as the total number of active permits issued under 35 this subsection does not exceed six (6) at any time. The commission 36 shall conduct an auction of the permits under IC 7.1-3-22-9, except that 37 the auction may be conducted at any time as determined by the 38 commission. Notwithstanding any other law, the minimum bid for an 39 initial permit under this subsection is ten thousand dollars ($10,000). 40 (k) Except as provided in section 16.3 of this chapter, the 41 commission may issue not more than nine (9) new three-way permits 42 to sell alcoholic beverages for on-premises consumption to applicants, 2023 IN 1419—LS 6647/DI 87 6 1 each of whom must be a proprietor, as owner or lessee, or both, of a 2 restaurant located: 3 (1) within a motorsports investment district (as defined in 4 IC 5-1-17.5-11); or 5 (2) not more than one thousand five hundred (1,500) feet from a 6 motorsports investment district. 7 The ownership of a permit issued under this subsection and the location 8 for which the permit was issued shall not be transferred. If the 9 commission issues nine (9) new permits under this subsection, and a 10 permit issued under this subsection is later revoked or is not renewed, 11 the commission may issue another new permit, as long as the total 12 number of active permits issued under this subsection does not exceed 13 nine (9) at any time. A permit holder and any lessee or proprietor of the 14 permit premises are subject to the formal written commitment required 15 under IC 7.1-3-19-17. Notwithstanding IC 7.1-3-1-3.5 and IC 7.1-3-1.1, 16 if business operations cease at the permit premises for more than six 17 (6) months, the permit shall revert to the commission. The permit 18 holder is not entitled to any refund or other compensation. 19 (l) Except as provided in section 16.3 of this chapter, the 20 commission may issue not more than two (2) new three-way permits to 21 sell alcoholic beverages for on-premises consumption for premises 22 located within a qualified motorsports facility (as defined in 23 IC 5-1-17.5-14). The ownership of a permit issued under this 24 subsection and the location for which the permit was issued shall not 25 be transferred. If the commission issues two (2) new permits under this 26 subsection, and a permit issued under this subsection is later revoked 27 or is not renewed, the commission may issue another new permit, as 28 long as the total number of active permits issued under this subsection 29 does not exceed two (2) at any time. A permit holder and any lessee or 30 proprietor of the permit premises are subject to the formal written 31 commitment required under IC 7.1-3-19-17. Notwithstanding 32 IC 7.1-3-1-3.5 and IC 7.1-3-1.1, if business operations cease at the 33 permit premises for more than six (6) months, the permit shall revert 34 to the commission. The permit holder is not entitled to any refund or 35 other compensation. 2023 IN 1419—LS 6647/DI 87