*EH1025.1* February 16, 2024 ENGROSSED HOUSE BILL No. 1025 _____ DIGEST OF HB 1025 (Updated February 14, 2024 1:30 pm - DI 140) Citations Affected: IC 7.1-1; IC 7.1-3. Synopsis: Mixed beverages. Adds a definition of "mixed beverage". Allows the holder of a wine wholesaler's permit to take certain actions concerning mixed beverages and flavored malt beverages. Effective: July 1, 2024. Manning, Jeter, Steuerwald, Soliday (SENATE SPONSORS — WALKER K, ALTING, MESSMER, BUSCH, NIEZGODSKI, CHARBONNEAU, NIEMEYER, DERNULC, GOODE, BECKER, GARTEN, VINZANT, POL JR., ZAY) January 8, 2024, read first time and referred to Committee on Public Policy. January 9, 2024, reported — Do Pass. January 11, 2024, read second time, ordered engrossed. January 12, 2024, engrossed. January 16, 2024, read third time, passed. Yeas 74, nays 20. SENATE ACTION January 25, 2024, read first time and referred to Committee on Public Policy. February 15, 2024, reported favorably — Do Pass. EH 1025—LS 6015/DI 137 February 16, 2024 Second Regular Session of the 123rd General Assembly (2024) 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 2023 Regular Session of the General Assembly. ENGROSSED HOUSE BILL No. 1025 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 7.1-1-3-26.2 IS ADDED TO THE INDIANA 2 CODE AS A NEW SECTION TO READ AS FOLLOWS 3 [EFFECTIVE JULY 1, 2024]: Sec. 26.2. "Mixed beverage" means a 4 prepared cordial, cocktail, or highball that is in a can or container 5 that holds not more than twenty-four (24) ounces of the beverage 6 and is a mixture of: 7 (1) whiskey, neutral spirits, brandy, gin, or another distilled 8 spirit; and 9 (2) carbonated or plain water, pure juice from a flower or 10 plant, or other flavoring materials; 11 that is suitable for immediate consumption and contains not less 12 than five-tenths percent (0.5%) of alcohol by volume and not more 13 than fifteen percent (15%) of alcohol by volume. 14 SECTION 2. IC 7.1-3-13-3, AS AMENDED BY P.L.153-2015, 15 SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE 16 JULY 1, 2024]: Sec. 3. (a) The holder of a wine wholesaler's permit 17 may purchase, import, and transport wine, brandy, mixed beverages, EH 1025—LS 6015/DI 137 2 1 or flavored malt beverage from the primary source of supply. A wine 2 wholesaler may export and transport wine, brandy, or flavored malt 3 beverage by the bottle, barrel, cask, or other container, to points outside 4 Indiana. A wine wholesaler is entitled to sell, furnish, and deliver wine 5 or flavored malt beverage from inventory that has been located on the 6 wholesaler's premises before the time of invoicing and delivery to a 7 wine wholesaler, a wine retailer, a supplemental caterer, a temporary 8 wine permittee, and a wine dealer, but not at retail. A wine wholesaler 9 may sell, furnish, and deliver brandy or mixed beverages from 10 inventory that has been located on the wholesaler's premises before the 11 time of invoicing and delivery, but not at retail, only to a person who 12 holds a liquor retailer's permit, a supplemental caterer's permit, or a 13 liquor dealer's permit. A holder of a wine wholesaler's permit may sell 14 wine, mixed beverages, or flavored malt beverages to the wine 15 wholesaler's bona fide regular employees. A wine wholesaler may sell, 16 donate, and deliver wine, mixed beverages, or flavored malt beverage 17 from inventory that has been located on the wholesaler's premises 18 before the time of invoicing and delivery to a qualified organization 19 that is conducting an allowable event to which IC 7.1-3-6.1 applies or 20 a charity auction to which IC 7.1-3-6.2 applies. 21 (b) As used in this section, "brandy" means: 22 (1) any alcoholic distillate described in 27 CFR 5.22(d) as in 23 effect on January 1, 1983; or 24 (2) a beverage product that: 25 (A) is prepared from a liquid described in subdivision (1); 26 (B) is classified as a cordial or liqueur as defined in 27 CFR 27 5.22(h) as in effect on January 1, 1997; and 28 (C) meets the following requirements: 29 (i) At least sixty-six and two-thirds percent (66 2/3%) of the 30 product's alcohol content is composed of a substance 31 described in subdivision (1). 32 (ii) The product's label makes no reference to any distilled 33 spirit other than brandy. 34 (iii) The product's alcohol content is not less than sixteen 35 percent (16%) by volume or thirty-two (32) degrees proof. 36 (iv) The product contains dairy cream. 37 (v) The product's sugar, dextrose, or levulose content is at 38 least twenty percent (20%) of the product's weight. 39 (vi) The product contains caramel coloring. 40 (c) Nothing in this section allows a wine wholesaler to sell, give, 41 purchase, transport, or export beer (as defined in IC 7.1-1-3-6) unless 42 the wine wholesaler also holds a beer wholesaler's permit under EH 1025—LS 6015/DI 137 3 1 IC 7.1-3-3-1. 2 (d) A wine wholesaler that also holds a liquor wholesaler's permit 3 under IC 7.1-3-8 may not: 4 (1) hold a beer wholesaler's permit under IC 7.1-3-3; 5 (2) possess, sell, or transport beer; or 6 (3) sell more than one million (1,000,000) gallons of flavored 7 malt beverage during a calendar year. 8 (d) The holder of a wine wholesaler's permit may possess, 9 transport, sell, and deliver mixed beverages only to a person who 10 holds one (1) of the following: 11 (1) A liquor retailer's permit under IC 7.1-3-9. 12 (2) A supplemental caterer's permit under IC 7.1-3-9.5. 13 (3) A liquor dealer's permit under IC 7.1-3-10. 14 (4) A liquor wholesaler's permit under IC 7.1-3-8. 15 (5) A wine wholesaler's permit issued under this chapter. EH 1025—LS 6015/DI 137 4 COMMITTEE REPORT Mr. Speaker: Your Committee on Public Policy, to which was referred House Bill 1025, has had the same under consideration and begs leave to report the same back to the House with the recommendation that said bill do pass. (Reference is to HB 1025 as introduced.) MANNING Committee Vote: Yeas 8, Nays 3 _____ COMMITTEE REPORT Madam President: The Senate Committee on Public Policy, to which was referred House Bill No. 1025, has had the same under consideration and begs leave to report the same back to the Senate with the recommendation that said bill DO PASS. (Reference is to HB 1025 as printed January 9, 2024.) ALTING, Chairperson Committee Vote: Yeas 9, Nays 0 EH 1025—LS 6015/DI 137