Introduced Version
HOUSE BILL No. 1086
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 7.1-1-3-33.5; IC 7.1-3; IC 7.1-5-3-6;
IC 7.1-5-10; IC 35-52-7-76.1.
Synopsis: Alcoholic beverage sales. Allows a bar or restaurant
(retailer) to prepare, sell, and deliver alcoholic beverages for carryout
or delivery in sealed, nonoriginal containers. Allows a retailer to reduce
the price of alcoholic beverages during a part of the day. Prohibits a
retailer from doing the following: (1) Allowing a game on the licensed
premises that: (A) is determined by the quantity of alcoholic beverages
consumed by a patron; and (B) awards alcoholic beverage prizes. (2)
Selling or serving an unlimited or indefinite amount of alcoholic
beverages for a fixed price. After June 30, 2024, requires liquor
liability insurance or an endorsement with coverage of at least
$500,000 to obtain or renew a retailer's permit. Requires compliance
with the insurance coverage requirement not later than January 1, 2025,
for a retailer's permit issued before July 1, 2024.
Effective: July 1, 2024.
Teshka, Manning, Criswell
January 8, 2024, read first time and referred to Committee on Public Policy.
2024 IN 1086—LS 6644/DI 87 Introduced
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.
HOUSE BILL No. 1086
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 7.1-1-3-33.5 IS ADDED TO THE INDIANA
2 CODE AS A NEW SECTION TO READ AS FOLLOWS
3 [EFFECTIVE JULY 1, 2024]: Sec. 33.5. "Qualified container"
4 means a clean, sealable container that is for the sale of alcoholic
5 beverages for consumption off the premises, that:
6 (1) has a liquid capacity of not more than four (4) quarts; and
7 (2) after the container is filled, is sealed with a device or
8 material that is used to fully close off the container securely
9 without any perforations or straw holes.
10 SECTION 2. IC 7.1-3-1-6.4 IS ADDED TO THE INDIANA CODE
11 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
12 1, 2024]: Sec. 6.4. (a) Except as provided in subsection (c), the
13 holder of a retailer's permit must maintain during the term of the
14 permit:
15 (1) a liquor liability insurance policy that has total coverage
16 of at least five hundred thousand dollars ($500,000); or
17 (2) a liquor liability endorsement:
2024 IN 1086—LS 6644/DI 87 2
1 (A) to a general liability insurance policy; and
2 (B) that has total coverage of at least five hundred
3 thousand dollars ($500,000).
4 (b) The commission may deny, suspend, revoke, or not renew a
5 permit, if the permit holder fails to maintain the insurance
6 coverage required under this section.
7 (c) If a retailer's permit is deposited with the commission under
8 IC 7.1-3-1.1, the insurance coverage required under subsection (a)
9 does not apply while the permit is held by the commission on
10 deposit. However, the commission may not make the permit active
11 until the permit holder complies with subsection (a).
12 (d) The holder of a retailer's permit must provide the
13 commission with proof of insurance coverage:
14 (1) to apply for or renew a permit;
15 (2) before the commission may make a permit active that is on
16 deposit under IC 7.1-3-1.1; or
17 (3) at any time, upon the request of the commission.
18 (e) After June 30, 2024, the commission may not:
19 (1) issue, renew, or transfer a retailer's permit; or
20 (2) make a permit active that is on deposit with the
21 commission under IC 7.1-3-1.1;
22 unless the permit applicant or permit holder complies with this
23 section. This subsection expires July 1, 2027.
24 (f) A holder of an active retailer's permit issued before July 1,
25 2024, must comply with this section not later than January 1, 2025,
26 or the commission may suspend or revoke the permit. This
27 subsection expires July 1, 2027.
28 SECTION 3. IC 7.1-3-4-6, AS AMENDED BY P.L.194-2021,
29 SECTION 31, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
30 JULY 1, 2024]: Sec. 6. (a) The holder of a beer retailer's permit shall
31 be entitled to purchase beer for sale under his the permit only from a
32 permittee entitled to sell to him the beer retailer under this title. A
33 beer retailer shall be entitled to possess beer and sell it beer at retail to
34 a customer for consumption on the licensed premises. A beer retailer
35 also shall be entitled to sell beer to a customer and deliver it beer in
36 permissible containers to the customer on the licensed premises, or to
37 the customer's house. A beer retailer also shall be entitled to
38 prepare, sell, and deliver beer in qualified containers to the
39 customer on the licensed premises, or to the customer's house. This
40 delivery may only be performed by the permit holder or an employee
41 who holds an employee permit. The permit holder shall maintain a
42 written record of each delivery for at least one (1) year that shows the
2024 IN 1086—LS 6644/DI 87 3
1 customer's name, location of delivery, and quantity sold.
2 (b) A beer retailer shall not be entitled to sell beer at wholesale. He
3 A beer retailer shall not be entitled to sell and deliver beer on the
4 street or at the curb outside the licensed premises, nor shall he a beer
5 retailer be entitled to sell beer at a place other than the licensed
6 premises. However, a beer retailer may offer food service (excluding
7 alcoholic beverages) to a patron who is outside the licensed premises
8 by transacting business through a window in the licensed premises.
9 (c) A beer retailer shall be entitled to sell and deliver warm or cold
10 beer for carry out, or for at-home delivery, in barrels or other
11 commercial containers in a quantity that does not exceed fifteen and
12 one-half (15 1/2) gallons at any one (1) time. A beer retailer that
13 delivers beer to a customer's residence must require the customer to
14 provide proof of age in accordance with IC 7.1-5-10-23.
15 (d) Notwithstanding IC 7.1-1-3-20, the licensed premises of the beer
16 retailer may include the beer retailer parking lot or an area adjacent to
17 the beer retailer that may only be used for the purpose of conveying
18 alcoholic beverages and other nonalcoholic items to a customer, and
19 may not be used for point of sale purposes or any other purpose. Any
20 alcoholic beverages conveyed to the customer must be: satisfy the
21 following:
22 (1) Alcoholic beverages that are in the sealed original containers
23 and must be placed in a bag that is stamped, printed, or labeled
24 on the outside: "CONTAINS ALCOHOLIC BEVERAGES". and
25 (2) Alcoholic beverages that are prepared by the beer retailer
26 must be packaged by the beer retailer in qualified containers
27 that are:
28 (A) stamped, printed, or labeled on the outside:
29 "CONTAINS ALCOHOLIC BEVERAGES"; or
30 (B) placed in a bag stamped, printed, or labeled on the
31 outside: "CONTAINS ALCOHOLIC BEVERAGES".
32 (2) (3) Placed by an employee of the permittee who is at least
33 twenty-one (21) years of age:
34 (A) in the trunk of the motor vehicle; or
35 (B) behind the last upright seat of the motor vehicle, if the
36 motor vehicle is not equipped with a trunk.
37 A retailer permittee may only convey a customer's order of alcoholic
38 beverages to the customer, if the customer has also purchased a meal
39 from the retailer permittee that is conveyed to the customer at the same
40 time as the alcoholic beverages.
41 (e) The employee of the permittee that conveys the alcoholic
42 beverages to the customer must require the customer to provide proof
2024 IN 1086—LS 6644/DI 87 4
1 of age in accordance with IC 7.1-5-10-23.
2 (f) The parking lot or area where the alcoholic beverages are
3 conveyed to the customer must be:
4 (1) well lit; and
5 (2) within clear view of the main entrance to the building of the
6 retailer premises.
7 SECTION 4. IC 7.1-3-9-9, AS AMENDED BY P.L.194-2021,
8 SECTION 37, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
9 JULY 1, 2024]: Sec. 9. (a) The holder of a liquor retailer's permit shall
10 be entitled to purchase liquor only from a permittee entitled to sell to
11 him the liquor retailer under this title. A liquor retailer shall be
12 entitled to possess liquor and sell it liquor at retail to a customer for
13 consumption on the licensed premises. A liquor retailer also shall be
14 entitled to sell liquor to a customer and deliver it liquor in permissible
15 containers to the customer on the licensed premises, or to the
16 customer's house. A liquor retailer also shall be entitled to prepare,
17 sell, and deliver liquor in qualified containers to the customer on
18 the licensed premises, or to the customer's house. This delivery may
19 only be performed by the permit holder or an employee who holds an
20 employee permit. The permit holder shall maintain a written record of
21 each delivery for at least one (1) year that shows the customer's name,
22 location of delivery, and quantity sold.
23 (b) A liquor retailer shall not be entitled to sell liquor at wholesale.
24 He A liquor retailer shall not be entitled to sell and deliver liquor on
25 the street or at the curb outside the licensed premises, nor shall he a
26 liquor retailer be entitled to sell liquor at a place other than the
27 licensed premises. However, a liquor retailer may offer food service
28 (excluding alcoholic beverages) to a patron who is outside the licensed
29 premises by transacting business through a window in the licensed
30 premises.
31 (c) A liquor retailer shall not be entitled to sell and deliver liquor for
32 carry out or for at-home delivery, in a quantity that exceeds four (4)
33 quarts at any one (1) time. A liquor retailer that delivers liquor to a
34 customer's residence must require the customer to provide proof of age
35 in accordance with IC 7.1-5-10-23.
36 (d) Notwithstanding IC 7.1-1-3-20, the licensed premises of the
37 liquor retailer may include the liquor retailer parking lot or an area
38 adjacent to the liquor retailer that may only be used for the purpose of
39 conveying alcoholic beverages and other nonalcoholic items to a
40 customer, and may not be used for point of sale purposes or any other
41 purpose. Any alcoholic beverages conveyed to the customer must be:
42 satisfy the following:
2024 IN 1086—LS 6644/DI 87 5
1 (1) Alcoholic beverages that are in the sealed original containers
2 and must be placed in a bag that is stamped, printed, or labeled
3 on the outside: "CONTAINS ALCOHOLIC BEVERAGES". and
4 (2) Alcoholic beverages that are prepared by the liquor
5 retailer must be packaged by the liquor retailer in qualified
6 containers that are:
7 (A) stamped, printed, or labeled on the outside:
8 "CONTAINS ALCOHOLIC BEVERAGES"; or
9 (B) placed in a bag stamped, printed, or labeled on the
10 outside: "CONTAINS ALCOHOLIC BEVERAGES".
11 (2) (3) placed by an employee of the permittee who is at least
12 twenty-one (21) years of age:
13 (A) in the trunk of the motor vehicle; or
14 (B) behind the last upright seat of the motor vehicle, if the
15 motor vehicle is not equipped with a trunk.
16 A retailer permittee may only convey a customer's order of alcoholic
17 beverages to the customer, if the customer has also purchased a meal
18 from the retailer permittee that is conveyed to the customer at the same
19 time as the alcoholic beverages.
20 (e) The employee of the permittee that conveys the alcoholic
21 beverages to the customer must require the customer to provide proof
22 of age in accordance with IC 7.1-5-10-23.
23 (f) The parking lot or area where the alcoholic beverages are
24 conveyed to the customer must be:
25 (1) well lit; and
26 (2) within clear view of the main entrance to the building of the
27 retailer premises.
28 SECTION 5. IC 7.1-3-14-4, AS AMENDED BY P.L.194-2021,
29 SECTION 44, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
30 JULY 1, 2024]: Sec. 4. (a) The holder of a wine retailer's permit is
31 entitled to purchase wine only from a permittee entitled to sell to the
32 wine retailer under this title. A wine retailer is entitled to possess wine
33 and sell it wine at retail to a customer for consumption on the licensed
34 premises. A wine retailer is also entitled to sell wine to a customer and
35 deliver it wine in permissible containers to the customer on the
36 licensed premises or to the customer's house. A wine retailer also
37 shall be entitled to prepare, sell, and deliver wine in qualified
38 containers to the customer on the licensed premises, or to the
39 customer's house. This delivery may only be performed by the permit
40 holder or an employee who holds an employee permit. The permit
41 holder shall maintain a written record of each delivery for at least one
42 (1) year that shows the customer's name, location of delivery, and
2024 IN 1086—LS 6644/DI 87 6
1 quantity sold.
2 (b) A wine retailer is not entitled to sell wine at wholesale. A wine
3 retailer is not entitled to sell and deliver wine on the street or at the
4 curb outside the licensed premises, nor is the wine retailer entitled to
5 sell wine at a place other than the licensed premises. However, a wine
6 retailer may offer food service (excluding alcoholic beverages) to a
7 patron who is outside the licensed premises by transacting business
8 through a window in the licensed premises.
9 (c) A wine retailer is entitled to sell and deliver wine for carry out,
10 or for at-home delivery. A wine retailer that delivers wine to a
11 customer's residence must require the customer to provide proof of age
12 in accordance with IC 7.1-5-10-23.
13 (d) Notwithstanding IC 7.1-1-3-20, the licensed premises of the
14 wine retailer may include the wine retailer parking lot or an area
15 adjacent to the wine retailer that may only be used for the purpose of
16 conveying alcoholic beverages and other nonalcoholic items to a
17 customer, and may not be used for point of sale purposes or any other
18 purpose. Any alcoholic beverages conveyed to the customer must be:
19 satisfy the following:
20 (1) Alcoholic beverages that are in the sealed original containers
21 and must be placed in a bag that is stamped, printed, or labeled
22 on the outside: "CONTAINS ALCOHOLIC BEVERAGES". and
23 (2) Alcoholic beverages that are prepared by the wine retailer
24 must be packaged by the wine retailer in qualified containers
25 that are:
26 (A) stamped, printed, or labeled on the outside:
27 "CONTAINS ALCOHOLIC BEVERAGES"; or
28 (B) placed in a bag stamped, printed, or labeled on the
29 outside: "CONTAINS ALCOHOLIC BEVERAGES".
30 (2) (3) Placed by an employee of the permittee who is at least
31 twenty-one (21) years of age:
32 (A) in the trunk of the motor vehicle; or
33 (B) behind the last upright seat of the motor vehicle, if the
34 motor vehicle is not equipped with a trunk.
35 A retailer permittee may only convey a customer's order of alcoholic
36 beverages to the customer, if the customer has also purchased a meal
37 from the retailer permittee that is conveyed to the customer at the same
38 time as the alcoholic beverages.
39 (e) The employee of the permittee that conveys the alcoholic
40 beverages to the customer must require the customer to provide proof
41 of age in accordance with IC 7.1-5-10-23.
42 (f) The parking lot or area where the alcoholic beverages are
2024 IN 1086—LS 6644/DI 87 7
1 conveyed to the customer must be:
2 (1) well lit; and
3 (2) within clear view of the main entrance to the building of the
4 retailer premises.
5 SECTION 6. IC 7.1-5-3-6 IS AMENDED TO READ AS
6 FOLLOWS [EFFECTIVE JULY 1, 2024]: Sec. 6. Mixing of Drinks
7 Permitted. The provisions of this chapter shall not prohibit the
8 following:
9 (1) service of Serving a mixed drink from the vessel in which it
10 the mixed drink was prepared.
11 (2) Preparing and placing an alcoholic beverage in a qualified
12 container for carryout or delivery.
13 However, the liquor used in the preparation of a mixed drink shall be
14 drawn directly from the original container in which the liquor was
15 contained and poured directly into the vessel in which the mixed drink
16 is to be prepared.
17 SECTION 7. IC 7.1-5-10-20, AS AMENDED BY P.L.234-2017,
18 SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
19 JULY 1, 2024]: Sec. 20. (a) It is unlawful for a holder of a retailer's
20 permit to do any of the following:
21 (1) Sell alcoholic beverages during a portion of the day at a price
22 that is reduced from the usual, customary, or established price that
23 the permittee charges during the remainder of that day.
24 (2) (1) Furnish two (2) or more servings of an alcoholic beverage
25 upon the placing of an order for one (1) serving to one (1) person
26 for that person's personal consumption.
27 (3) (2) Charge a single price for the required purchase of two (2)
28 or more servings of an alcoholic beverage.
29 (3) Conduct, sponsor, or participate in or allow a person on
30 the licensed premises to conduct, sponsor, or participate in
31 any game or contest on the licensed premises that:
32 (A) is determined by the quantity of alcoholic beverages
33 consumed by an individual or individuals; or
34 (B) awards alcoholic beverages or reduced price alcoholic
35 beverages as prizes for the game or contest.
36 (4) Sell or serve an unlimited or indefinite amount of alcoholic
37 beverages for a fixed price.
38 (b) Subsection (a) applies to private clubs but does not apply to
39 private functions that are not open to the public.
40 (c) Notwithstanding subsection (a)(1), it is lawful for a holder of a
41 retailer's permit to sell alcoholic beverages during a portion of the day
42 at a price that is increased from the usual, customary, or established
2024 IN 1086—LS 6644/DI 87 8
1 price that the permittee charges during the remainder of that day as
2 long as the price increase is charged when the permittee provides paid
3 live entertainment not incidental to the services customarily provided.
4 (d) Notwithstanding subsection (a) and IC 7.1-5-5-7, it is lawful for
5 a hotel, in an area of the hotel in which alcoholic beverages are not
6 sold, to make available to its registered guests and their guests
7 alcoholic beverages at no additional charge beyond what is to be paid
8 by the registered guests as the room rate.
9 (e) (c) A person who knowingly or intentionally violates this section
10 commits a Class B misdemeanor.
11 SECTION 8. IC 7.1-5-10-20.5 IS ADDED TO THE INDIANA
12 CODE AS A NEW SECTION TO READ AS FOLLOWS
13 [EFFECTIVE JULY 1, 2024]: Sec. 20.5. (a) It is lawful for the holder
14 of a retailer's permit to sell alcoholic beverages during a portion of
15 the day at a price that is reduced from the usual, customary, or
16 established price that the retailer charges during the remainder of
17 the day, subject to the following:
18 (1) A price reduction:
19 (A) may not exceed:
20 (i) four (4) hours in one (1) day; and
21 (ii) fifteen (15) hours in one (1) week; and
22 (B) may be during consecutive or nonconsecutive hours
23 that are divided by the holder of the retailer permit in any
24 manner.
25 (2) A price reduction may not be made from 10 p.m.
26 prevailing local time until 3 a.m. prevailing local time, the
27 following day.
28 (b) It is lawful for the holder of a retailer's permit to sell
29 alcoholic beverages during an entire day at a price that is reduced
30 from the usual, customary, or established price that the retailer
31 charges for the alcoholic beverages.
32 (c) It is lawful for a holder of a retailer's permit to sell alcoholic
33 beverages during a portion of the day at a price that is increased
34 from the usual, customary, or established price that the permittee
35 charges during the remainder of that day, if the price increase is
36 charged when the permittee provides paid live entertainment not
37 incidental to the services customarily provided. Sales of alcoholic
38 beverages at the usual, customary, or established price during the
39 remainder of the day is not a partial day price reduction that is
40 subject to subsection (a).
41 (d) Notwithstanding IC 7.1-5-5-7, it is lawful for a hotel, in an
42 area of the hotel in which alcoholic beverages are not sold, to make
2024 IN 1086—LS 6644/DI 87 9
1 available to:
2 (1) the hotel's registered guests; and
3 (2) the guests of registered guests;
4 from 7 a.m. prevailing local time until 3 a.m. prevailing local time,
5 alcoholic beverages at no additional charge beyond what is to be
6 paid by the registered guests as the room rate.
7 SECTION 9. IC 35-52-7-76.1 IS ADDED TO THE INDIANA
8 CODE AS A NEW SECTION TO READ AS FOLLOWS
9 [EFFECTIVE JULY 1, 2024]: Sec. 76.1. IC 7.1-5-10-20.5 defines a
10 crime concerning sales.
2024 IN 1086—LS 6644/DI 87