Indiana 2024 Regular Session

Indiana House Bill HB1086 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
	1	+	EH1086.1
	2	+	February 16, 2024
	3	+	ENGROSSED
	4	+	HOUSE BILL No. 1086
	5	+	_____
	6	+	DIGEST OF HB 1086 (Updated February 14, 2024 2:12 pm - DI 137)
	7	+	Citations Affected: IC 7.1-1; IC 7.1-3; IC 7.1-5.
	8	+	Synopsis: Alcoholic beverage sales. Defines a craft manufacturer as
	9	+	a person who holds a small brewery permit, a farm winery permit, or
	10	+	an artisan distiller's permit. After June 30, 2024, requires liquor
	11	+	liability insurance or an endorsement with coverage of at least
	12	+	$500,000 to obtain or renew a retailer's permit or a permit held by a
	13	+	craft manufacturer. Requires compliance with the insurance coverage
	14	+	requirement not later than January 1, 2025, for a permit issued before
	15	+	July 1, 2024. Prohibits a bar or restaurant (retailer) from doing the
	16	+	following: (1) Allowing a game on the licensed premises that: (A) is
	17	+	determined by the quantity of alcoholic beverages consumed by a
	18	+	patron; and (B) awards alcoholic beverage prizes. (2) Selling or serving
	19	+	an unlimited or indefinite amount of alcoholic beverages for a fixed
	20	+	price. Allows a retailer and a craft manufacturer to reduce or increase
	21	+	the price of alcoholic beverages during a part of the day. Specifies that
	22	+	the commission may revoke the privilege of a retailer or craft
	23	+	manufacturer to sell alcoholic beverages for a reduced or increased
	24	+	price under certain provisions if the retailer or craft manufacturer
	25	+	violates particular conditions.
	26	+	Effective: July 1, 2024.
	27	+	Teshka, Manning, Criswell, Moed
	28	+	(SENATE SPONSORS — WALKER K, ALTING, MESSMER)
	29	+	January 8, 2024, read first time and referred to Committee on Public Policy.
	30	+	January 23, 2024, amended, reported — Do Pass.
	31	+	January 25, 2024, read second time, amended, ordered engrossed.
	32	+	January 26, 2024, engrossed.
	33	+	January 29, 2024, read third time, passed. Yeas 75, nays 21.
	34	+	SENATE ACTION
	35	+	February 5, 2024, read first time and referred to Committee on Public Policy.
	36	+	February 15, 2024, amended, reported favorably — Do Pass.
	37	+	EH 1086—LS 6644/DI 87 February 16, 2024
1	38		Second Regular Session of the 123rd General Assembly (2024)
2	39		PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
3	40		Constitution) is being amended, the text of the existing provision will appear in this style type,
4	41		additions will appear in this style type, and deletions will appear in this style type.
5	42		Additions: Whenever a new statutory provision is being enacted (or a new constitutional
6	43		provision adopted), the text of the new provision will appear in this style type. Also, the
7	44		word NEW will appear in that style type in the introductory clause of each SECTION that adds
8	45		a new provision to the Indiana Code or the Indiana Constitution.
9	46		Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
10	47		between statutes enacted by the 2023 Regular Session of the General Assembly.
11		-	HOUSE ENROLLED ACT No. 1086
12		-	AN ACT to amend the Indiana Code concerning alcohol and
13		-	tobacco.
	48	+	ENGROSSED
	49	+	HOUSE BILL No. 1086
	50	+	A BILL FOR AN ACT to amend the Indiana Code concerning
	51	+	alcohol and tobacco.
14	52		Be it enacted by the General Assembly of the State of Indiana:
15		-	SECTION 1. IC 7.1-1-3-13.7 IS ADDED TO THE INDIANA
	53	+	1 SECTION 1. IC 7.1-1-3-13.7 IS ADDED TO THE INDIANA
	54	+	2 CODE AS A NEW SECTION TO READ AS FOLLOWS
	55	+	3 [EFFECTIVE JULY 1, 2024]: Sec. 13.7. "Craft manufacturer"
	56	+	4 means a person who holds:
	57	+	5 (1) a small brewery permit under IC 7.1-3-2-7(5);
	58	+	6 (2) a farm winery permit under IC 7.1-3-12; or
	59	+	7 (3) an artisan distiller's permit under IC 7.1-3-27.
	60	+	8 SECTION 2. IC 7.1-3-1-6.4 IS ADDED TO THE INDIANA CODE
	61	+	9 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
	62	+	10 1, 2024]: Sec. 6.4. (a) Except as provided in subsection (c), a craft
	63	+	11 manufacturer and the holder of a retailer's permit must maintain
	64	+	12 during the term of the permit:
	65	+	13 (1) a liquor liability insurance policy that has total coverage
	66	+	14 of at least five hundred thousand dollars ($500,000); or
	67	+	15 (2) a liquor liability endorsement:
	68	+	16 (A) to a general liability insurance policy; and
	69	+	17 (B) that has total coverage of at least five hundred
	70	+	EH 1086—LS 6644/DI 87 2
	71	+	1 thousand dollars ($500,000).
	72	+	2 (b) The commission may deny, suspend, revoke, or not renew a
	73	+	3 permit, if the permit holder fails to maintain the insurance
	74	+	4 coverage required under this section.
	75	+	5 (c) If a retailer's permit or a permit held by a craft
	76	+	6 manufacturer is deposited with the commission under IC 7.1-3-1.1,
	77	+	7 the insurance coverage required under subsection (a) does not
	78	+	8 apply while the permit is held by the commission on deposit.
	79	+	9 However, the commission may not make the permit active until the
	80	+	10 permit holder complies with subsection (a).
	81	+	11 (d) A craft manufacturer and the holder of a retailer's permit
	82	+	12 must provide the commission with proof of insurance coverage:
	83	+	13 (1) to apply for or renew a permit;
	84	+	14 (2) before the commission may make a permit active that is on
	85	+	15 deposit under IC 7.1-3-1.1; or
	86	+	16 (3) at any time, upon the request of the commission.
	87	+	17 (e) After June 30, 2024, the commission may not:
	88	+	18 (1) issue, renew, or transfer a permit held by a craft
	89	+	19 manufacturer or a retailer's permit; or
	90	+	20 (2) make a permit active that is on deposit with the
	91	+	21 commission under IC 7.1-3-1.1;
	92	+	22 unless the permit applicant or permit holder complies with this
	93	+	23 section. This subsection expires July 1, 2027.
	94	+	24 (f) A:
	95	+	25 (1) craft manufacturer that holds an active permit issued
	96	+	26 before July 1, 2024; and
	97	+	27 (2) holder of an active retailer's permit issued before July 1,
	98	+	28 2024;
	99	+	29 must comply with this section not later than January 1, 2025, or
	100	+	30 the commission may suspend or revoke the permit. This subsection
	101	+	31 expires July 1, 2027.
	102	+	32 SECTION 3. IC 7.1-5-10-20, AS AMENDED BY P.L.234-2017,
	103	+	33 SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	104	+	34 JULY 1, 2024]: Sec. 20. (a) It is unlawful for a holder of a retailer's
	105	+	35 permit to do any of the following:
	106	+	36 (1) Sell alcoholic beverages during a portion of the day at a price
	107	+	37 that is reduced from the usual, customary, or established price that
	108	+	38 the permittee charges during the remainder of that day.
	109	+	39 (2) (1) Furnish two (2) or more servings of an alcoholic beverage
	110	+	40 upon the placing of an order for one (1) serving to one (1) person
	111	+	41 for that person's personal consumption.
	112	+	42 (3) (2) Charge a single price for the required purchase of two (2)
	113	+	EH 1086—LS 6644/DI 87 3
	114	+	1 or more servings of an alcoholic beverage.
	115	+	2 (3) Conduct, sponsor, or participate in or allow a person on
	116	+	3 the licensed premises to conduct, sponsor, or participate in
	117	+	4 any game or contest on the licensed premises that:
	118	+	5 (A) is determined by the quantity of alcoholic beverages
	119	+	6 consumed by an individual or individuals; or
	120	+	7 (B) awards alcoholic beverages or reduced price alcoholic
	121	+	8 beverages as prizes for the game or contest.
	122	+	9 (4) Sell or serve an unlimited or indefinite amount of alcoholic
	123	+	10 beverages for a fixed price.
	124	+	11 (b) Subsection (a) applies to private clubs but does not apply to
	125	+	12 private functions that are not open to the public.
	126	+	13 (c) Notwithstanding subsection (a)(1), it is lawful for a holder of a
	127	+	14 retailer's permit to sell alcoholic beverages during a portion of the day
	128	+	15 at a price that is increased from the usual, customary, or established
	129	+	16 price that the permittee charges during the remainder of that day as
	130	+	17 long as the price increase is charged when the permittee provides paid
	131	+	18 live entertainment not incidental to the services customarily provided.
	132	+	19 (d) Notwithstanding subsection (a) and IC 7.1-5-5-7, it is lawful for
	133	+	20 a hotel, in an area of the hotel in which alcoholic beverages are not
	134	+	21 sold, to make available to its registered guests and their guests
	135	+	22 alcoholic beverages at no additional charge beyond what is to be paid
	136	+	23 by the registered guests as the room rate.
	137	+	24 (e) (c) A person who knowingly or intentionally violates this section
	138	+	25 commits a Class B misdemeanor.
	139	+	26 SECTION 4. IC 7.1-5-10-20.5 IS ADDED TO THE INDIANA
	140	+	27 CODE AS A NEW SECTION TO READ AS FOLLOWS
	141	+	28 [EFFECTIVE JULY 1, 2024]: Sec. 20.5. (a) It is lawful for a craft
	142	+	29 manufacturer and the holder of a retailer's permit to sell alcoholic
	143	+	30 beverages during a portion of the day at a price that is reduced
	144	+	31 from the usual, customary, or established price that the craft
	145	+	32 manufacturer or retailer charges during the remainder of the day,
	146	+	33 subject to the following:
	147	+	34 (1) A price reduction:
	148	+	35 (A) may not exceed:
	149	+	36 (i) four (4) hours in one (1) day; and
	150	+	37 (ii) fifteen (15) hours in one (1) week; and
	151	+	38 (B) may be during consecutive or nonconsecutive hours
	152	+	39 that are divided by the craft manufacturer or holder of the
	153	+	40 retailer permit in any manner.
	154	+	41 (2) A price reduction may not be made from 9 p.m. prevailing
	155	+	42 local time until 3 a.m. prevailing local time, the following day.
	156	+	EH 1086—LS 6644/DI 87 4
	157	+	1 (b) It is lawful for a craft manufacturer and the holder of a
	158	+	2 retailer's permit to sell alcoholic beverages during an entire day at
	159	+	3 a price that is reduced from the usual, customary, or established
	160	+	4 price that the craft manufacturer or retailer charges for the
	161	+	5 alcoholic beverages.
	162	+	6 (c) It is lawful for a craft manufacturer and a holder of a
	163	+	7 retailer's permit to sell alcoholic beverages during a portion of the
	164	+	8 day at a price that is increased from the usual, customary, or
	165	+	9 established price that the permittee charges during the remainder
	166	+	10 of that day, if the price increase is charged when the permittee
	167	+	11 provides paid live entertainment not incidental to the services
	168	+	12 customarily provided. Sales of alcoholic beverages at the usual,
	169	+	13 customary, or established price during the remainder of the day is
	170	+	14 not a partial day price reduction that is subject to subsection (a).
	171	+	15 (d) Notwithstanding IC 7.1-5-5-7, it is lawful for a hotel, in an
	172	+	16 area of the hotel in which alcoholic beverages are not sold, to make
	173	+	17 available to:
	174	+	18 (1) the hotel's registered guests; and
	175	+	19 (2) the guests of registered guests;
	176	+	20 from 7 a.m. prevailing local time until 3 a.m. prevailing local time,
	177	+	21 alcoholic beverages at no additional charge beyond what is to be
	178	+	22 paid by the registered guests as the room rate.
	179	+	23 (e) The commission may revoke the privilege of a craft
	180	+	24 manufacturer or retailer to sell alcoholic beverages in the manner
	181	+	25 described in subsection (a), (b), or (c), if the craft manufacturer or
	182	+	26 retailer violates any of the conditions under subsection (a).
	183	+	EH 1086—LS 6644/DI 87 5
	184	+	COMMITTEE REPORT
	185	+	Mr. Speaker: Your Committee on Public Policy, to which was
	186	+	referred House Bill 1086, has had the same under consideration and
	187	+	begs leave to report the same back to the House with the
	188	+	recommendation that said bill be amended as follows:
	189	+	Page 2, line 39, delete ", or to the customer's house." and insert ".".
	190	+	Page 4, between lines 6 and 7, begin a new paragraph and insert:
	191	+	"(g) Notwithstanding subsection (a), if a beer retailer violates
	192	+	the requirement under subsection (a) that beer must be sold and
	193	+	delivered in qualified containers, the commission may revoke the
	194	+	privilege of the retailer under subsection (a) to sell and deliver beer
	195	+	in qualified containers to a customer on the licensed premises.".
	196	+	Page 4, line 18, delete ", or to the customer's house." and insert ".".
	197	+	Page 5, line 11, delete "placed" and insert "Placed".
	198	+	Page 5, between lines 27 and 28, begin a new paragraph and insert:
	199	+	"(g) Notwithstanding subsection (a), if a liquor retailer violates
	200	+	the requirement under subsection (a) that liquor must be sold and
	201	+	delivered in qualified containers, the commission may revoke the
	202	+	privilege of the retailer under subsection (a) to sell and deliver
	203	+	liquor in qualified containers to a customer on the licensed
	204	+	premises.".
	205	+	Page 5, line 38, delete ", or to the" and insert ".".
	206	+	Page 5, line 39, delete "customer's house.".
	207	+	Page 7, between lines 4 and 5, begin a new paragraph and insert:
	208	+	"(g) Notwithstanding subsection (a), if a wine retailer violates
	209	+	the requirement under subsection (a) that wine must be sold and
	210	+	delivered in qualified containers, the commission may revoke the
	211	+	privilege of the retailer under subsection (a) to sell and deliver
	212	+	wine in qualified containers to a customer on the licensed
	213	+	premises.".
	214	+	Page 7, line 12, delete "." and insert "to a customer on the licensed
	215	+	premises.".
	216	+	Page 9, delete lines 7 through 10, begin a new paragraph and insert:
	217	+	"(e) The commission may revoke the privilege of a retailer to sell
	218	+	alcoholic beverages in the manner described in subsection (a), (b),
	219	+	or (c), if the retailer violates any of the conditions under subsection
	220	+	(a).".
	221	+	Renumber all SECTIONS consecutively.
	222	+	and when so amended that said bill do pass.
	223	+	EH 1086—LS 6644/DI 87 6
	224	+	(Reference is to HB 1086 as introduced.)
	225	+	MANNING
	226	+	Committee Vote: yeas 12, nays 1.
	227	+	_____
	228	+	HOUSE MOTION
	229	+	Mr. Speaker: I move that House Bill 1086 be amended to read as
	230	+	follows:
	231	+	Page 1, between the enacting clause and line 1, begin a new
	232	+	paragraph and insert:
	233	+	"SECTION 1. IC 7.1-1-3-13.7 IS ADDED TO THE INDIANA
16	234		CODE AS A NEW SECTION TO READ AS FOLLOWS
17	235		[EFFECTIVE JULY 1, 2024]: Sec. 13.7. "Craft manufacturer"
18		-	means a person that holds a craft manufacturer's permit.
19		-	SECTION 2. IC 7.1-1-3-13.8 IS ADDED TO THE INDIANA
20		-	CODE AS A NEW SECTION TO READ AS FOLLOWS
21		-	[EFFECTIVE JULY 1, 2024]: Sec. 13.8. "Craft manufacturer's
22		-	permit" means:
	236	+	means a person who holds:
23	237		(1) a small brewery permit under IC 7.1-3-2-7(5);
24	238		(2) a farm winery permit under IC 7.1-3-12; or
25		-	(3) an artisan distiller's permit under IC 7.1-3-27.
26		-	SECTION 3. IC 7.1-1-3-33.5 IS ADDED TO THE INDIANA
27		-	CODE AS A NEW SECTION TO READ AS FOLLOWS
28		-	[EFFECTIVE JULY 1, 2024]: Sec. 33.5. "Qualified container"
29		-	means a new, clean, sealable container that is for the sale of
30		-	alcoholic beverages for consumption off the premises, that:
31		-	(1) has a liquid capacity of not more than four (4) quarts; and
32		-	(2) after the container is filled, is sealed with a device or
33		-	material that is used to fully close off the container securely
34		-	without any perforations or straw holes.
35		-	SECTION 4. IC 7.1-3-1-6.4 IS ADDED TO THE INDIANA CODE
36		-	HEA 1086 — CC 1 2
37		-	AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
38		-	1, 2024]: Sec. 6.4. (a) This section applies to the holder of one (1) or
39		-	more of the following:
40		-	(1) A retailer's permit.
41		-	(2) A craft manufacturer's permit.
42		-	(b) A permit holder must maintain during the permit term:
43		-	(1) a liquor liability insurance policy that has total coverage
44		-	of at least five hundred thousand dollars ($500,000); or
45		-	(2) a liquor liability endorsement:
46		-	(A) to a general liability insurance policy; and
47		-	(B) that has total coverage of at least five hundred
48		-	thousand dollars ($500,000).
49		-	However, the insurance coverage requirements do not apply while
50		-	a permit is on deposit under IC 7.1-3-1.1.
51		-	(c) If an establishment operates under:
52		-	(1) a retailer's permit; and
53		-	(2) a craft manufacturer's permit;
54		-	the insurance coverage requirements under subsection (b) apply to
55		-	the establishment as a whole. The permit holder is not required to
56		-	maintain the total insurance coverage requirements for each
57		-	permit that is issued to the establishment.
58		-	(d) A permit holder must provide the commission with proof of
59		-	insurance coverage:
60		-	(1) to apply for or renew a permit;
61		-	(2) before the commission may make a permit active that is on
62		-	deposit under IC 7.1-3-1.1; or
63		-	(3) at any time, upon the request of the commission.
64		-	(e) The commission may deny, suspend, revoke, or not renew a
65		-	permit, if the permit holder fails to maintain the insurance
66		-	coverage required under this section.
67		-	(f) After June 30, 2024, the commission may not:
68		-	(1) issue, renew, or transfer a permit; or
69		-	(2) make a permit active that is on deposit under IC 7.1-3-1.1;
70		-	unless the permit applicant or permit holder complies with this
71		-	section. This subsection expires July 1, 2027.
72		-	(g) A permit holder that holds an active permit issued before
73		-	July 1, 2024, must comply with this section not later than January
74		-	1, 2025, or the commission may suspend or revoke the permit. This
75		-	subsection expires July 1, 2027.
76		-	SECTION 5. IC 7.1-3-4-6, AS AMENDED BY P.L.194-2021,
77		-	SECTION 31, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
78		-	JULY 1, 2024]: Sec. 6. (a) The holder of a beer retailer's permit shall
79		-	HEA 1086 — CC 1 3
80		-	be entitled to purchase beer for sale under his the permit only from a
81		-	permittee entitled to sell to him the beer retailer under this title. A
82		-	beer retailer shall be entitled to possess beer and sell it beer at retail to
83		-	a customer for consumption on the licensed premises. A beer retailer
84		-	also shall be entitled to sell beer to a customer and deliver it beer in
85		-	permissible containers to the customer on the licensed premises, or to
86		-	the customer's house. This delivery may only be performed by the
87		-	permit holder or an employee who holds an employee permit. The
88		-	permit holder shall maintain a written record of each delivery for at
89		-	least one (1) year that shows the customer's name, location of delivery,
90		-	and quantity sold. Subject to subsection (g), a beer retailer also may
91		-	prepare and package beer in qualified containers for sale and
92		-	delivery to a customer on the licensed premises for consumption off
93		-	the licensed premises.
94		-	(b) A beer retailer shall not be entitled to sell beer at wholesale. He
95		-	A beer retailer shall not be entitled to sell and deliver beer on the
96		-	street or at the curb outside the licensed premises, nor shall he a beer
97		-	retailer be entitled to sell beer at a place other than the licensed
98		-	premises. However, a beer retailer may offer food service (excluding
99		-	alcoholic beverages) to a patron who is outside the licensed premises
100		-	by transacting business through a window in the licensed premises.
101		-	(c) A beer retailer shall be entitled to sell and deliver warm or cold
102		-	beer for carry out, or for at-home delivery, in barrels or other
103		-	commercial containers in a quantity that does not exceed fifteen and
104		-	one-half (15 1/2) gallons at any one (1) time. A beer retailer that
105		-	delivers beer to a customer's residence must require the customer to
106		-	provide proof of age in accordance with IC 7.1-5-10-23.
107		-	(d) Notwithstanding IC 7.1-1-3-20, the licensed premises of the beer
108		-	retailer may include the beer retailer parking lot or an area adjacent to
109		-	the beer retailer that may only be used for the purpose of conveying
110		-	alcoholic beverages and other nonalcoholic items to a customer, and
111		-	may not be used for point of sale purposes or any other purpose. Any
112		-	alcoholic beverages conveyed to the customer must be: satisfy the
113		-	following:
114		-	(1) Alcoholic beverages that are in the sealed original containers
115		-	and must be placed in a bag that is stamped, printed, or labeled
116		-	on the outside: "CONTAINS ALCOHOLIC BEVERAGES". and
117		-	(2) Alcoholic beverages that are prepared by the beer retailer
118		-	must be packaged by the beer retailer in qualified containers
119		-	that are:
120		-	(A) stamped, printed, or labeled on the outside:
121		-	"CONTAINS ALCOHOLIC BEVERAGES"; or
122		-	HEA 1086 — CC 1 4
123		-	(B) placed in a bag stamped, printed, or labeled on the
124		-	outside: "CONTAINS ALCOHOLIC BEVERAGES".
125		-	(2) (3) Placed by an employee of the permittee who is at least
126		-	twenty-one (21) years of age:
127		-	(A) in the trunk of the motor vehicle; or
128		-	(B) behind the last upright seat of the motor vehicle, if the
129		-	motor vehicle is not equipped with a trunk.
130		-	A retailer permittee may only convey a customer's order of alcoholic
131		-	beverages to the customer, if the customer has also purchased a meal
132		-	from the retailer permittee that is conveyed to the customer at the same
133		-	time as the alcoholic beverages.
134		-	(e) The employee of the permittee that conveys the alcoholic
135		-	beverages to the customer must require the customer to provide proof
136		-	of age in accordance with IC 7.1-5-10-23.
137		-	(f) The parking lot or area where the alcoholic beverages are
138		-	conveyed to the customer must be:
139		-	(1) well lit; and
140		-	(2) within clear view of the main entrance to the building of the
141		-	retailer premises.
142		-	(g) If a beer retailer prepares and packages beer:
143		-	(1) for sale and delivery to a customer on the licensed
144		-	premises for consumption off the licensed premises; and
145		-	(2) in a container that is not in a qualified container;
146		-	the commission may revoke the beer retailer's privilege under this
147		-	section of preparing and packaging beer for sale and delivery to a
148		-	customer in a qualified container.
149		-	SECTION 6. IC 7.1-3-9-9, AS AMENDED BY P.L.194-2021,
150		-	SECTION 37, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
151		-	JULY 1, 2024]: Sec. 9. (a) The holder of a liquor retailer's permit shall
152		-	be entitled to purchase liquor only from a permittee entitled to sell to
153		-	him the liquor retailer under this title. A liquor retailer shall be
154		-	entitled to possess liquor and sell it liquor at retail to a customer for
155		-	consumption on the licensed premises. A liquor retailer also shall be
156		-	entitled to sell liquor to a customer and deliver it liquor in permissible
157		-	containers to the customer on the licensed premises, or to the
158		-	customer's house. This delivery may only be performed by the permit
159		-	holder or an employee who holds an employee permit. The permit
160		-	holder shall maintain a written record of each delivery for at least one
161		-	(1) year that shows the customer's name, location of delivery, and
162		-	quantity sold. Subject to subsection (g), a liquor retailer also may
163		-	prepare and package liquor in qualified containers for sale and
164		-	delivery to a customer on the licensed premises for consumption off
165		-	HEA 1086 — CC 1 5
166		-	the licensed premises.
167		-	(b) A liquor retailer shall not be entitled to sell liquor at wholesale.
168		-	He A liquor retailer shall not be entitled to sell and deliver liquor on
169		-	the street or at the curb outside the licensed premises, nor shall he a
170		-	liquor retailer be entitled to sell liquor at a place other than the
171		-	licensed premises. However, a liquor retailer may offer food service
172		-	(excluding alcoholic beverages) to a patron who is outside the licensed
173		-	premises by transacting business through a window in the licensed
174		-	premises.
175		-	(c) A liquor retailer shall not be entitled to sell and deliver liquor for
176		-	carry out or for at-home delivery, in a quantity that exceeds four (4)
177		-	quarts at any one (1) time. A liquor retailer that delivers liquor to a
178		-	customer's residence must require the customer to provide proof of age
179		-	in accordance with IC 7.1-5-10-23.
180		-	(d) Notwithstanding IC 7.1-1-3-20, the licensed premises of the
181		-	liquor retailer may include the liquor retailer parking lot or an area
182		-	adjacent to the liquor retailer that may only be used for the purpose of
183		-	conveying alcoholic beverages and other nonalcoholic items to a
184		-	customer, and may not be used for point of sale purposes or any other
185		-	purpose. Any alcoholic beverages conveyed to the customer must be:
186		-	satisfy the following:
187		-	(1) Alcoholic beverages that are in the sealed original containers
188		-	and must be placed in a bag that is stamped, printed, or labeled
189		-	on the outside: "CONTAINS ALCOHOLIC BEVERAGES". and
190		-	(2) Alcoholic beverages that are prepared by the liquor
191		-	retailer must be packaged by the liquor retailer in qualified
192		-	containers that are:
193		-	(A) stamped, printed, or labeled on the outside:
194		-	"CONTAINS ALCOHOLIC BEVERAGES"; or
195		-	(B) placed in a bag stamped, printed, or labeled on the
196		-	outside: "CONTAINS ALCOHOLIC BEVERAGES".
197		-	(2) (3) Placed by an employee of the permittee who is at least
198		-	twenty-one (21) years of age:
199		-	(A) in the trunk of the motor vehicle; or
200		-	(B) behind the last upright seat of the motor vehicle, if the
201		-	motor vehicle is not equipped with a trunk.
202		-	A retailer permittee may only convey a customer's order of alcoholic
203		-	beverages to the customer, if the customer has also purchased a meal
204		-	from the retailer permittee that is conveyed to the customer at the same
205		-	time as the alcoholic beverages.
206		-	(e) The employee of the permittee that conveys the alcoholic
207		-	beverages to the customer must require the customer to provide proof
208		-	HEA 1086 — CC 1 6
209		-	of age in accordance with IC 7.1-5-10-23.
210		-	(f) The parking lot or area where the alcoholic beverages are
211		-	conveyed to the customer must be:
212		-	(1) well lit; and
213		-	(2) within clear view of the main entrance to the building of the
214		-	retailer premises.
215		-	(g) If a liquor retailer prepares and packages liquor:
216		-	(1) for sale and delivery to a customer on the licensed
217		-	premises for consumption off the licensed premises; and
218		-	(2) in a container that is not in a qualified container;
219		-	the commission may revoke the liquor retailer's privilege under
220		-	this section of preparing and packaging liquor for sale and delivery
221		-	to a customer in a qualified container.
222		-	SECTION 7. IC 7.1-3-14-4, AS AMENDED BY P.L.194-2021,
223		-	SECTION 44, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
224		-	JULY 1, 2024]: Sec. 4. (a) The holder of a wine retailer's permit is
225		-	entitled to purchase wine only from a permittee entitled to sell to the
226		-	wine retailer under this title. A wine retailer is entitled to possess wine
227		-	and sell it wine at retail to a customer for consumption on the licensed
228		-	premises. A wine retailer is also entitled to sell wine to a customer and
229		-	deliver it wine in permissible containers to the customer on the
230		-	licensed premises or to the customer's house. This delivery may only
231		-	be performed by the permit holder or an employee who holds an
232		-	employee permit. The permit holder shall maintain a written record of
233		-	each delivery for at least one (1) year that shows the customer's name,
234		-	location of delivery, and quantity sold. Subject to subsection (g), a
235		-	wine retailer also may prepare and package wine in qualified
236		-	containers for sale and delivery to a customer on the licensed
237		-	premises for consumption off the licensed premises.
238		-	(b) A wine retailer is not entitled to sell wine at wholesale. A wine
239		-	retailer is not entitled to sell and deliver wine on the street or at the
240		-	curb outside the licensed premises, nor is the wine retailer entitled to
241		-	sell wine at a place other than the licensed premises. However, a wine
242		-	retailer may offer food service (excluding alcoholic beverages) to a
243		-	patron who is outside the licensed premises by transacting business
244		-	through a window in the licensed premises.
245		-	(c) A wine retailer is entitled to sell and deliver wine for carry out,
246		-	or for at-home delivery. A wine retailer that delivers wine to a
247		-	customer's residence must require the customer to provide proof of age
248		-	in accordance with IC 7.1-5-10-23.
249		-	(d) Notwithstanding IC 7.1-1-3-20, the licensed premises of the
250		-	wine retailer may include the wine retailer parking lot or an area
251		-	HEA 1086 — CC 1 7
252		-	adjacent to the wine retailer that may only be used for the purpose of
253		-	conveying alcoholic beverages and other nonalcoholic items to a
254		-	customer, and may not be used for point of sale purposes or any other
255		-	purpose. Any alcoholic beverages conveyed to the customer must be:
256		-	satisfy the following:
257		-	(1) Alcoholic beverages that are in the sealed original containers
258		-	and must be placed in a bag that is stamped, printed, or labeled
259		-	on the outside: "CONTAINS ALCOHOLIC BEVERAGES". and
260		-	(2) Alcoholic beverages that are prepared by the wine retailer
261		-	must be packaged by the wine retailer in qualified containers
262		-	that are:
263		-	(A) stamped, printed, or labeled on the outside:
264		-	"CONTAINS ALCOHOLIC BEVERAGES"; or
265		-	(B) placed in a bag stamped, printed, or labeled on the
266		-	outside: "CONTAINS ALCOHOLIC BEVERAGES".
267		-	(2) (3) Placed by an employee of the permittee who is at least
268		-	twenty-one (21) years of age:
269		-	(A) in the trunk of the motor vehicle; or
270		-	(B) behind the last upright seat of the motor vehicle, if the
271		-	motor vehicle is not equipped with a trunk.
272		-	A retailer permittee may only convey a customer's order of alcoholic
273		-	beverages to the customer, if the customer has also purchased a meal
274		-	from the retailer permittee that is conveyed to the customer at the same
275		-	time as the alcoholic beverages.
276		-	(e) The employee of the permittee that conveys the alcoholic
277		-	beverages to the customer must require the customer to provide proof
278		-	of age in accordance with IC 7.1-5-10-23.
279		-	(f) The parking lot or area where the alcoholic beverages are
280		-	conveyed to the customer must be:
281		-	(1) well lit; and
282		-	(2) within clear view of the main entrance to the building of the
283		-	retailer premises.
284		-	(g) If a wine retailer prepares and packages wine:
285		-	(1) for sale and delivery to a customer on the licensed
286		-	premises for consumption off the licensed premises; and
287		-	(2) in a container that is not in a qualified container;
288		-	the commission may revoke the wine retailer's privilege under this
289		-	section of preparing and packaging wine for sale and delivery to a
290		-	customer in a qualified container.
291		-	SECTION 8. IC 7.1-5-3-6 IS AMENDED TO READ AS
292		-	FOLLOWS [EFFECTIVE JULY 1, 2024]: Sec. 6. Mixing of Drinks
293		-	Permitted. The provisions of this chapter shall not prohibit the
294		-	HEA 1086 — CC 1 8
295		-	following:
296		-	(1) service of Serving a mixed drink from the vessel in which it
297		-	the mixed drink was prepared.
298		-	(2) Preparing and placing an alcoholic beverage in a qualified
299		-	container for carry-out or delivery to a customer on the
300		-	licensed premises.
301		-	However, the liquor used in the preparation of a mixed drink shall be
302		-	drawn directly from the original container in which the liquor was
303		-	contained and poured directly into the vessel in which the mixed drink
304		-	is to be prepared.
305		-	SECTION 9. IC 7.1-5-10-20, AS AMENDED BY P.L.234-2017,
306		-	SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
307		-	JULY 1, 2024]: Sec. 20. (a) It is unlawful for a holder of a retailer's
308		-	permit to do any of the following:
309		-	(1) Sell alcoholic beverages during a portion of the day at a price
310		-	that is reduced from the usual, customary, or established price that
311		-	the permittee charges during the remainder of that day.
312		-	(2) (1) Furnish two (2) or more servings of an alcoholic beverage
313		-	upon the placing of an order for one (1) serving to one (1) person
314		-	for that person's personal consumption.
315		-	(3) (2) Charge a single price for the required purchase of two (2)
316		-	or more servings of an alcoholic beverage.
317		-	(3) Except as expressly authorized under IC 7.1-3-6.1 or
318		-	IC 7.1-3-6.2, conduct, sponsor, or participate in or allow a
319		-	person on the licensed premises to conduct, sponsor, or
320		-	participate in any game or contest on the licensed premises
321		-	that:
322		-	(A) is determined by the quantity of alcoholic beverages
323		-	consumed by an individual or individuals; or
324		-	(B) awards alcoholic beverages or reduced price alcoholic
325		-	beverages as prizes for the game or contest.
326		-	(4) Sell or serve an unlimited or indefinite amount of alcoholic
327		-	beverages for a fixed price.
328		-	(b) Subsection (a) applies to private clubs but does not apply to
329		-	private functions that are not open to the public.
330		-	(c) Notwithstanding subsection (a)(1), it is lawful for a holder of a
331		-	retailer's permit to sell alcoholic beverages during a portion of the day
332		-	at a price that is increased from the usual, customary, or established
333		-	price that the permittee charges during the remainder of that day as
334		-	long as the price increase is charged when the permittee provides paid
335		-	live entertainment not incidental to the services customarily provided.
336		-	(d) Notwithstanding subsection (a) and IC 7.1-5-5-7, it is lawful for
337		-	HEA 1086 — CC 1 9
338		-	a hotel, in an area of the hotel in which alcoholic beverages are not
339		-	sold, to make available to its registered guests and their guests
340		-	alcoholic beverages at no additional charge beyond what is to be paid
341		-	by the registered guests as the room rate.
342		-	(e) (c) A person who knowingly or intentionally violates this section
343		-	commits a Class B misdemeanor.
344		-	SECTION 10. IC 7.1-5-10-20.5 IS ADDED TO THE INDIANA
345		-	CODE AS A NEW SECTION TO READ AS FOLLOWS
346		-	[EFFECTIVE JULY 1, 2024]: Sec. 20.5. (a) As used in this section,
347		-	"permit holder" means the holder of one (1) or more of the
348		-	following:
349		-	(1) A retailer's permit.
350		-	(2) A craft manufacturer's permit.
351		-	(b) It is lawful for a permit holder to sell alcoholic beverages
352		-	during a portion of the day at a price that is reduced from the
353		-	usual, customary, or established price that the permit holder
354		-	charges during the remainder of the day, subject to the following:
355		-	(1) A price reduction:
356		-	(A) may not exceed:
357		-	(i) four (4) hours in one (1) day; and
358		-	(ii) fifteen (15) hours in one (1) week; and
359		-	(B) may be during consecutive or nonconsecutive hours
360		-	that are divided by the permit holder in any manner.
361		-	(2) A price reduction may not be made from 9 p.m. prevailing
362		-	local time until 3 a.m. prevailing local time, the following day.
363		-	(c) It is lawful for a permit holder to sell alcoholic beverages
364		-	during an entire day at a price that is reduced from the usual,
365		-	customary, or established price that the permit holder charges for
366		-	the alcoholic beverages.
367		-	(d) It is lawful for a permit holder to sell alcoholic beverages
368		-	during a portion of the day at a price that is increased from the
369		-	usual, customary, or established price that the permit holder
370		-	charges during the remainder of that day, if the price increase is
371		-	charged when the permit holder provides paid live entertainment
372		-	not incidental to the services customarily provided. Sales of
373		-	alcoholic beverages at the usual, customary, or established price
374		-	during the remainder of the day is not a partial day price reduction
375		-	that is subject to subsection (b).
376		-	(e) Notwithstanding IC 7.1-5-5-7, it is lawful for a hotel, in an
377		-	area of the hotel in which alcoholic beverages are not sold, to make
378		-	available to:
379		-	(1) the hotel's registered guests; and
380		-	HEA 1086 — CC 1 10
381		-	(2) the guests of registered guests;
382		-	from 7 a.m. prevailing local time until 3 a.m. prevailing local time,
383		-	alcoholic beverages at no additional charge beyond what is to be
384		-	paid by the registered guests as the room rate.
385		-	(f) The commission may revoke the privilege of a permit holder
386		-	to sell alcoholic beverages in the manner described in subsection
387		-	(b), (c), or (d), if the permit holder violates any of the conditions
388		-	under subsection (b).
389		-	HEA 1086 — CC 1 Speaker of the House of Representatives
390		-	President of the Senate
391		-	President Pro Tempore
392		-	Governor of the State of Indiana
393		-	Date: Time:
394		-	HEA 1086 — CC 1
	239	+	(3) an artisan distiller's permit under IC 7.1-3-27.".
	240	+	Page 1, line 12, after "(c)," insert "a craft manufacturer and".
	241	+	Page 2, line 7, after "permit" insert "or a permit held by a craft
	242	+	manufacturer".
	243	+	Page 2, line 12, delete "The" and insert "A craft manufacturer and
	244	+	the".
	245	+	Page 2, line 19, after "transfer" insert "a permit held by a craft
	246	+	manufacturer or".
	247	+	Page 2, delete lines 24 through 27, begin a new paragraph and
	248	+	insert:
	249	+	"(f) A:
	250	+	(1) craft manufacturer that holds an active permit issued
	251	+	before July 1, 2024; and
	252	+	(2) holder of an active retailer's permit issued before July 1,
	253	+	2024;
	254	+	must comply with this section not later than January 1, 2025, or
	255	+	the commission may suspend or revoke the permit. This subsection
	256	+	expires July 1, 2027.".
	257	+	Page 8, line 29, after "for" insert "a craft manufacturer and".
	258	+	Page 8, line 32, after "that the" insert "craft manufacturer or".
	259	+	Page 8, line 39, after "by the" insert "craft manufacturer or".
	260	+	Page 9, line 2, after "for" insert "a craft manufacturer and".
	261	+	Page 9, line 4, after "that the" insert "craft manufacturer or".
	262	+	EH 1086—LS 6644/DI 87 7
	263	+	Page 9, line 6, after "for" insert "a craft manufacturer and".
	264	+	Page 9, line 23, after "a" insert "craft manufacturer or".
	265	+	Page 9, line 25, after "if the" insert "craft manufacturer or".
	266	+	Renumber all SECTIONS consecutively.
	267	+	(Reference is to HB 1086 as printed January 23, 2024.)
	268	+	TESHKA
	269	+	_____
	270	+	COMMITTEE REPORT
	271	+	Madam President: The Senate Committee on Public Policy, to which
	272	+	was referred House Bill No. 1086, has had the same under
	273	+	consideration and begs leave to report the same back to the Senate with
	274	+	the recommendation that said bill be AMENDED as follows:
	275	+	Page 1, delete lines 8 through 16.
	276	+	Page 2, delete lines 41 through 42.
	277	+	Delete pages 3 through 7.
	278	+	Page 8, delete lines 1 through 3.
	279	+	Page 9, line 13, delete "10 p.m." and insert "9 p.m.".
	280	+	Renumber all SECTIONS consecutively.
	281	+	and when so amended that said bill do pass.
	282	+	(Reference is to HB 1086 as reprinted January 26, 2024.)
	283	+	ALTING, Chairperson
	284	+	Committee Vote: Yeas 9, Nays 0.
	285	+	EH 1086—LS 6644/DI 87