*EH1086.1*
February 16, 2024
ENGROSSED
HOUSE BILL No. 1086
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DIGEST OF HB 1086 (Updated February 14, 2024 2:12 pm - DI 137)
Citations Affected: IC 7.1-1; IC 7.1-3; IC 7.1-5.
Synopsis: Alcoholic beverage sales. Defines a craft manufacturer as
a person who holds a small brewery permit, a farm winery permit, or
an artisan distiller's permit. 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 or a permit held by a
craft manufacturer. Requires compliance with the insurance coverage
requirement not later than January 1, 2025, for a permit issued before
July 1, 2024. Prohibits a bar or restaurant (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. Allows a retailer and a craft manufacturer to reduce or increase
the price of alcoholic beverages during a part of the day. Specifies that
the commission may revoke the privilege of a retailer or craft
manufacturer to sell alcoholic beverages for a reduced or increased
price under certain provisions if the retailer or craft manufacturer
violates particular conditions.
Effective: July 1, 2024.
Teshka, Manning, Criswell, Moed
(SENATE SPONSORS — WALKER K, ALTING, MESSMER)
January 8, 2024, read first time and referred to Committee on Public Policy.
January 23, 2024, amended, reported — Do Pass.
January 25, 2024, read second time, amended, ordered engrossed.
January 26, 2024, engrossed.
January 29, 2024, read third time, passed. Yeas 75, nays 21.
SENATE ACTION
February 5, 2024, read first time and referred to Committee on Public Policy.
February 15, 2024, amended, reported favorably — Do Pass.
EH 1086—LS 6644/DI 87 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. 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 7.1-1-3-13.7 IS ADDED TO THE INDIANA
2 CODE AS A NEW SECTION TO READ AS FOLLOWS
3 [EFFECTIVE JULY 1, 2024]: Sec. 13.7. "Craft manufacturer"
4 means a person who holds:
5 (1) a small brewery permit under IC 7.1-3-2-7(5);
6 (2) a farm winery permit under IC 7.1-3-12; or
7 (3) an artisan distiller's permit under IC 7.1-3-27.
8 SECTION 2. IC 7.1-3-1-6.4 IS ADDED TO THE INDIANA CODE
9 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
10 1, 2024]: Sec. 6.4. (a) Except as provided in subsection (c), a craft
11 manufacturer and the holder of a retailer's permit must maintain
12 during the term of the permit:
13 (1) a liquor liability insurance policy that has total coverage
14 of at least five hundred thousand dollars ($500,000); or
15 (2) a liquor liability endorsement:
16 (A) to a general liability insurance policy; and
17 (B) that has total coverage of at least five hundred
EH 1086—LS 6644/DI 87 2
1 thousand dollars ($500,000).
2 (b) The commission may deny, suspend, revoke, or not renew a
3 permit, if the permit holder fails to maintain the insurance
4 coverage required under this section.
5 (c) If a retailer's permit or a permit held by a craft
6 manufacturer is deposited with the commission under IC 7.1-3-1.1,
7 the insurance coverage required under subsection (a) does not
8 apply while the permit is held by the commission on deposit.
9 However, the commission may not make the permit active until the
10 permit holder complies with subsection (a).
11 (d) A craft manufacturer and the holder of a retailer's permit
12 must provide the commission with proof of insurance coverage:
13 (1) to apply for or renew a permit;
14 (2) before the commission may make a permit active that is on
15 deposit under IC 7.1-3-1.1; or
16 (3) at any time, upon the request of the commission.
17 (e) After June 30, 2024, the commission may not:
18 (1) issue, renew, or transfer a permit held by a craft
19 manufacturer or 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:
25 (1) craft manufacturer that holds an active permit issued
26 before July 1, 2024; and
27 (2) holder of an active retailer's permit issued before July 1,
28 2024;
29 must comply with this section not later than January 1, 2025, or
30 the commission may suspend or revoke the permit. This subsection
31 expires July 1, 2027.
32 SECTION 3. IC 7.1-5-10-20, AS AMENDED BY P.L.234-2017,
33 SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
34 JULY 1, 2024]: Sec. 20. (a) It is unlawful for a holder of a retailer's
35 permit to do any of the following:
36 (1) Sell alcoholic beverages during a portion of the day at a price
37 that is reduced from the usual, customary, or established price that
38 the permittee charges during the remainder of that day.
39 (2) (1) Furnish two (2) or more servings of an alcoholic beverage
40 upon the placing of an order for one (1) serving to one (1) person
41 for that person's personal consumption.
42 (3) (2) Charge a single price for the required purchase of two (2)
EH 1086—LS 6644/DI 87 3
1 or more servings of an alcoholic beverage.
2 (3) Conduct, sponsor, or participate in or allow a person on
3 the licensed premises to conduct, sponsor, or participate in
4 any game or contest on the licensed premises that:
5 (A) is determined by the quantity of alcoholic beverages
6 consumed by an individual or individuals; or
7 (B) awards alcoholic beverages or reduced price alcoholic
8 beverages as prizes for the game or contest.
9 (4) Sell or serve an unlimited or indefinite amount of alcoholic
10 beverages for a fixed price.
11 (b) Subsection (a) applies to private clubs but does not apply to
12 private functions that are not open to the public.
13 (c) Notwithstanding subsection (a)(1), it is lawful for a holder of a
14 retailer's permit to sell alcoholic beverages during a portion of the day
15 at a price that is increased from the usual, customary, or established
16 price that the permittee charges during the remainder of that day as
17 long as the price increase is charged when the permittee provides paid
18 live entertainment not incidental to the services customarily provided.
19 (d) Notwithstanding subsection (a) and IC 7.1-5-5-7, it is lawful for
20 a hotel, in an area of the hotel in which alcoholic beverages are not
21 sold, to make available to its registered guests and their guests
22 alcoholic beverages at no additional charge beyond what is to be paid
23 by the registered guests as the room rate.
24 (e) (c) A person who knowingly or intentionally violates this section
25 commits a Class B misdemeanor.
26 SECTION 4. IC 7.1-5-10-20.5 IS ADDED TO THE INDIANA
27 CODE AS A NEW SECTION TO READ AS FOLLOWS
28 [EFFECTIVE JULY 1, 2024]: Sec. 20.5. (a) It is lawful for a craft
29 manufacturer and the holder of a retailer's permit to sell alcoholic
30 beverages during a portion of the day at a price that is reduced
31 from the usual, customary, or established price that the craft
32 manufacturer or retailer charges during the remainder of the day,
33 subject to the following:
34 (1) A price reduction:
35 (A) may not exceed:
36 (i) four (4) hours in one (1) day; and
37 (ii) fifteen (15) hours in one (1) week; and
38 (B) may be during consecutive or nonconsecutive hours
39 that are divided by the craft manufacturer or holder of the
40 retailer permit in any manner.
41 (2) A price reduction may not be made from 9 p.m. prevailing
42 local time until 3 a.m. prevailing local time, the following day.
EH 1086—LS 6644/DI 87 4
1 (b) It is lawful for a craft manufacturer and the holder of a
2 retailer's permit to sell alcoholic beverages during an entire day at
3 a price that is reduced from the usual, customary, or established
4 price that the craft manufacturer or retailer charges for the
5 alcoholic beverages.
6 (c) It is lawful for a craft manufacturer and a holder of a
7 retailer's permit to sell alcoholic beverages during a portion of the
8 day at a price that is increased from the usual, customary, or
9 established price that the permittee charges during the remainder
10 of that day, if the price increase is charged when the permittee
11 provides paid live entertainment not incidental to the services
12 customarily provided. Sales of alcoholic beverages at the usual,
13 customary, or established price during the remainder of the day is
14 not a partial day price reduction that is subject to subsection (a).
15 (d) Notwithstanding IC 7.1-5-5-7, it is lawful for a hotel, in an
16 area of the hotel in which alcoholic beverages are not sold, to make
17 available to:
18 (1) the hotel's registered guests; and
19 (2) the guests of registered guests;
20 from 7 a.m. prevailing local time until 3 a.m. prevailing local time,
21 alcoholic beverages at no additional charge beyond what is to be
22 paid by the registered guests as the room rate.
23 (e) The commission may revoke the privilege of a craft
24 manufacturer or retailer to sell alcoholic beverages in the manner
25 described in subsection (a), (b), or (c), if the craft manufacturer or
26 retailer violates any of the conditions under subsection (a).
EH 1086—LS 6644/DI 87 5
COMMITTEE REPORT
Mr. Speaker: Your Committee on Public Policy, to which was
referred House Bill 1086, 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 2, line 39, delete ", or to the customer's house." and insert ".".
Page 4, between lines 6 and 7, begin a new paragraph and insert:
"(g) Notwithstanding subsection (a), if a beer retailer violates
the requirement under subsection (a) that beer must be sold and
delivered in qualified containers, the commission may revoke the
privilege of the retailer under subsection (a) to sell and deliver beer
in qualified containers to a customer on the licensed premises.".
Page 4, line 18, delete ", or to the customer's house." and insert ".".
Page 5, line 11, delete "placed" and insert "Placed".
Page 5, between lines 27 and 28, begin a new paragraph and insert:
"(g) Notwithstanding subsection (a), if a liquor retailer violates
the requirement under subsection (a) that liquor must be sold and
delivered in qualified containers, the commission may revoke the
privilege of the retailer under subsection (a) to sell and deliver
liquor in qualified containers to a customer on the licensed
premises.".
Page 5, line 38, delete ", or to the" and insert ".".
Page 5, line 39, delete "customer's house.".
Page 7, between lines 4 and 5, begin a new paragraph and insert:
"(g) Notwithstanding subsection (a), if a wine retailer violates
the requirement under subsection (a) that wine must be sold and
delivered in qualified containers, the commission may revoke the
privilege of the retailer under subsection (a) to sell and deliver
wine in qualified containers to a customer on the licensed
premises.".
Page 7, line 12, delete "." and insert "to a customer on the licensed
premises.".
Page 9, delete lines 7 through 10, begin a new paragraph and insert:
"(e) The commission may revoke the privilege of a retailer to sell
alcoholic beverages in the manner described in subsection (a), (b),
or (c), if the retailer violates any of the conditions under subsection
(a).".
Renumber all SECTIONS consecutively.
and when so amended that said bill do pass.
EH 1086—LS 6644/DI 87 6
(Reference is to HB 1086 as introduced.)
MANNING
Committee Vote: yeas 12, nays 1.
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HOUSE MOTION
Mr. Speaker: I move that House Bill 1086 be amended to read as
follows:
Page 1, between the enacting clause and line 1, begin a new
paragraph and insert:
"SECTION 1. IC 7.1-1-3-13.7 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2024]: Sec. 13.7. "Craft manufacturer"
means a person who holds:
(1) a small brewery permit under IC 7.1-3-2-7(5);
(2) a farm winery permit under IC 7.1-3-12; or
(3) an artisan distiller's permit under IC 7.1-3-27.".
Page 1, line 12, after "(c)," insert "a craft manufacturer and".
Page 2, line 7, after "permit" insert "or a permit held by a craft
manufacturer".
Page 2, line 12, delete "The" and insert "A craft manufacturer and
the".
Page 2, line 19, after "transfer" insert "a permit held by a craft
manufacturer or".
Page 2, delete lines 24 through 27, begin a new paragraph and
insert:
"(f) A:
(1) craft manufacturer that holds an active permit issued
before July 1, 2024; and
(2) holder of an active retailer's permit issued before July 1,
2024;
must comply with this section not later than January 1, 2025, or
the commission may suspend or revoke the permit. This subsection
expires July 1, 2027.".
Page 8, line 29, after "for" insert "a craft manufacturer and".
Page 8, line 32, after "that the" insert "craft manufacturer or".
Page 8, line 39, after "by the" insert "craft manufacturer or".
Page 9, line 2, after "for" insert "a craft manufacturer and".
Page 9, line 4, after "that the" insert "craft manufacturer or".
EH 1086—LS 6644/DI 87 7
Page 9, line 6, after "for" insert "a craft manufacturer and".
Page 9, line 23, after "a" insert "craft manufacturer or".
Page 9, line 25, after "if the" insert "craft manufacturer or".
Renumber all SECTIONS consecutively.
(Reference is to HB 1086 as printed January 23, 2024.)
TESHKA
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COMMITTEE REPORT
Madam President: The Senate Committee on Public Policy, to which
was referred House Bill No. 1086, 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 1, delete lines 8 through 16.
Page 2, delete lines 41 through 42.
Delete pages 3 through 7.
Page 8, delete lines 1 through 3.
Page 9, line 13, delete "10 p.m." and insert "9 p.m.".
Renumber all SECTIONS consecutively.
and when so amended that said bill do pass.
(Reference is to HB 1086 as reprinted January 26, 2024.)
ALTING, Chairperson
Committee Vote: Yeas 9, Nays 0.
EH 1086—LS 6644/DI 87