*HB1197.1*
January 23, 2024
HOUSE BILL No. 1197
_____
DIGEST OF HB 1197 (Updated January 23, 2024 3:48 pm - DI 144)
Citations Affected: IC 7.1-2; IC 7.1-3; IC 7.1-5.
Synopsis: Alcohol and tobacco commission. Allows the alcohol and
tobacco commission (commission) to provide notices electronically.
Allows the commission to issue 10 new three-way permits to the city
of Noblesville, allowing the issuance of: (1) three new three-way
permits in 2024; (2) three new three-way permits in 2025; and (3) four
new three-way permits in 2026; with any permits not issued in a year
allowed to be issued in a subsequent year. Repeals provisions related
to beer gardens and patio alcohol service for certain premises. Exempts
a food hall that: (1) contains not less than 10 distinct nonaffiliated food
and beverage vendors; and (2) is located within a mixed use
development or redevelopment project with a total investment of at
least $100,000,000; from certain requirements that apply to the
issuance of a food hall master permit. Repeals a provision concerning
residency requirements for beer wholesalers. Removes the requirement
that a property tax clearance form provided to the alcohol and tobacco
commission include an embossed seal from the county treasurer.
Includes a craft manufacturer in the definition of a host permittee for
purposes of a temporary craft manufacturer hospitality permit.
Modifies the definition of "designated permittee" in relation to a
designated refreshment area. Replaces references to the federal bureau
of alcohol, tobacco, and explosives with the federal Alcohol and
Tobacco Tax and Trade Bureau or its successor agency.
Effective: July 1, 2024.
Manning
January 9, 2024, read first time and referred to Committee on Public Policy.
January 23, 2024, amended, reported — Do Pass.
HB 1197—LS 6558/DI 137 January 23, 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.
HOUSE BILL No. 1197
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 7.1-2-4-10 IS AMENDED TO READ AS
2 FOLLOWS [EFFECTIVE JULY 1, 2024]: Sec. 10. The county
3 executive and fiscal body and the city or town executive, as the case
4 may be, shall make their appointments to the local board within fifteen
5 (15) days after being notified by the commission by registered mail or
6 electronic communication to do so. The commission may extend this
7 time limit by an additional fifteen (15) days.
8 SECTION 2. IC 7.1-3-1-4 IS AMENDED TO READ AS
9 FOLLOWS [EFFECTIVE JULY 1, 2024]: Sec. 4. The commission
10 shall issue a permit authorized by this title only upon proper
11 application. The application shall be in writing, and verified, upon
12 forms the form and manner prescribed and furnished by the
13 commission. The application shall contain the terms and information
14 required by this title or by the rules and regulations of the commission.
15 The appropriate surety bond, if one is required, also shall be submitted
16 with the application.
17 SECTION 3. IC 7.1-3-1-5.3 IS AMENDED TO READ AS
HB 1197—LS 6558/DI 137 2
1 FOLLOWS [EFFECTIVE JULY 1, 2024]: Sec. 5.3. (a) This section
2 applies to an application for a new permit, renewal of a permit, or
3 transfer of a permit authorized by this article for a location in a:
4 (1) second or third class city; or
5 (2) county other than a county containing a consolidated city.
6 (b) As used in this section, "plan commission" has the meaning set
7 forth in IC 36-7-1-14.
8 (c) A director of a plan commission may request the commission to
9 notify the plan commission that the commission has received an
10 application for a permit for a location within the territory where the
11 plan commission has jurisdiction.
12 (d) If the commission receives a request under subsection (c), the
13 commission shall provide to the appropriate plan commission a copy
14 of the notice that the commission submits for publication to meet the
15 requirements of section 5 of this chapter. The commission shall send
16 by mail or electronically the copy to the plan commission no later than
17 the day that the commission submits the notice for publication.
18 SECTION 4. IC 7.1-3-3-7 IS AMENDED TO READ AS
19 FOLLOWS [EFFECTIVE JULY 1, 2024]: Sec. 7. Action of
20 Commission on Renewals. The commission shall notify the applicant
21 in writing of its determination to grant or deny the renewal of a beer
22 wholesaler's permit not more than ten (10) days after the filing of the
23 application. The notice may be given by personal service upon the
24 applicant or by registered mail, addressed to applicant at the address
25 shown in the application for renewal, or by electronic
26 communication. The registration and deposit of the notice, properly
27 addressed, in the post office within the ten (10) day period shall be
28 sufficient when the notice is given by registered mail.
29 SECTION 5. IC 7.1-3-3-11 IS AMENDED TO READ AS
30 FOLLOWS [EFFECTIVE JULY 1, 2024]: Sec. 11. Findings and
31 Conclusions: Action of Commission. The person who conducted the
32 hearing shall make a report of the recommended findings of fact and
33 conclusions to the commission following the hearing. The commission,
34 upon receipt of the report, by a majority vote of its membership, shall
35 make findings of fact and state its conclusions affirming or reversing
36 the proposed denial of renewal. The commission shall enter its order
37 accordingly and that order shall be final and conclusive except as
38 otherwise provided in this title. The commission shall serve the
39 applicant, personally, or by registered mail, or electronically with a
40 copy of the findings of fact, conclusions, and order.
41 SECTION 6. IC 7.1-3-9.5-2, AS AMENDED BY P.L.196-2015,
42 SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
HB 1197—LS 6558/DI 137 3
1 JULY 1, 2024]: Sec. 2. (a) The holder of a supplemental caterer's
2 permit shall notify the commission in writing not later than forty-eight
3 (48) hours in advance of each function that the permittee intends to
4 cater with alcoholic beverages. The commission may waive the
5 forty-eight (48) hour notice period required under this subsection, if
6 authorized by the chairman or the chairman's designee, but may not
7 waive the requirement for filing notice.
8 (b) The notice shall include the following:
9 (1) The date, time, and location of the function to be catered.
10 (2) If the function is open to the public, located in a county having
11 a population of less than one hundred fifty thousand (150,000),
12 and located in a different county from the county where the
13 permittee holds the three-way permit required under section 1 of
14 this chapter, the signature of the following official on a document
15 stating the official's approval of the catering of alcoholic
16 beverages at the proposed date, time, and location:
17 (A) The president of the town council, if the location is in a
18 town.
19 (B) The mayor, if the location is in a city.
20 (C) The president of the board of county commissioners, if the
21 location is in unincorporated territory.
22 (c) If a permittee complies with all notice requirements of
23 subsection (b), the commission in its absolute discretion has the
24 authority, any other provision of this title to the contrary
25 notwithstanding, to approve the proposed date and location of the
26 function to be catered.
27 (d) The commission need not notify the permittee if the commission
28 approved the proposed date and location, and the permittee may
29 proceed as stated in the permittee's notice to the commission. The
30 commission shall notify the permittee by certified United States mail
31 or electronic mail, in advance of the function, if the commission does
32 not approve the proposed date or location.
33 (e) A permittee whose proposed date or location has been
34 disapproved by the commission still may cater the function on that date
35 and at that location, but the permittee may not cater alcoholic
36 beverages at that function on that date and at that location.
37 SECTION 7. IC 7.1-3-18-9.5, AS ADDED BY P.L.196-2015,
38 SECTION 11, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
39 JULY 1, 2024]: Sec. 9.5. (a) This section applies only to an employee
40 who:
41 (1) holds an employee's permit issued under section 9 of this
42 chapter;
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1 (2) is convicted of operating while intoxicated;
2 (3) does not have a prior conviction for operating while
3 intoxicated; and
4 (4) was at least twenty-one (21) years of age at the time the
5 employee committed the offense of operating while intoxicated
6 for which the employee was convicted.
7 (b) The commission shall send to the most recent mailing address
8 that the commission has on file, or by electronic communication, a
9 written notice to an employee that the employee's permit will be
10 revoked six (6) months after the date of sentencing for the conviction
11 of operating while intoxicated unless the employee submits to the
12 commission, on a form prescribed by the commission, information
13 verifying that the employee has completed an appropriate substance
14 abuse treatment or education program that was provided by a provider
15 certified by the division of mental health and addiction.
16 (c) If an employee fails to submit the information as required under
17 subsection (b) within six (6) months from the date of the sentencing,
18 the commission shall revoke the employee's permit.
19 SECTION 8. IC 7.1-3-20-16.8, AS AMENDED BY P.L.220-2023,
20 SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
21 JULY 1, 2024]: Sec. 16.8. (a) A permit that is authorized by this
22 section may be issued without regard to the quota provisions of
23 IC 7.1-3-22.
24 (b) Except as provided in section 16.3 of this chapter, the
25 commission may issue not more than four (4) new three-way permits
26 to sell alcoholic beverages for on-premises consumption to applicants
27 in each of the following municipalities:
28 (1) Whitestown.
29 (2) Lebanon.
30 (3) Zionsville.
31 (4) Westfield.
32 (5) Carmel.
33 (6) Fishers.
34 (7) Noblesville.
35 (c) The following apply to permits issued under subsection (b):
36 (1) An applicant for a permit under subsection (b) must be a
37 proprietor, as owner or lessee, or both, of a restaurant located
38 within an economic development area, an area needing
39 redevelopment, or a redevelopment district as established under
40 IC 36-7-14 in a municipality's:
41 (A) downtown redevelopment district; or
42 (B) downtown economic revitalization area.
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1 (2) The cost of an initial permit is forty thousand dollars
2 ($40,000).
3 (3) The total number of active permits issued under subsection (b)
4 may not exceed twenty-four (24) permits at any time. If any of the
5 permits issued under subsection (b) are revoked or not renewed,
6 the commission may issue only enough new permits to bring the
7 total number of permits to twenty-four (24) active permits, with
8 not more than four (4) in each municipality listed in subsection
9 (b)(1) through (b)(6).
10 (4) The municipality may adopt an ordinance under
11 IC 7.1-3-19-17 requiring a permit holder to enter into a formal
12 written commitment as a condition of eligibility for a permit. As
13 set forth in IC 7.1-3-19-17(b), a formal written commitment is
14 binding on the permit holder and on any lessee or proprietor of
15 the permit premises.
16 (5) Notwithstanding IC 7.1-3-1-3.5 and IC 7.1-3-1.1, if business
17 operations cease at the permit premises for more than six (6)
18 months, the permit shall revert to the commission and the permit
19 holder is not entitled to any refund or other compensation.
20 (6) Except as provided in subdivision (8), the ownership of a
21 permit may not be transferred.
22 (7) A permit may not be transferred from the premises for which
23 the permit was issued.
24 (8) If the area in which the permit premises is located is no longer
25 designated an economic development area, an area needing
26 redevelopment, or a redevelopment district, a permit issued under
27 this section may be renewed, and the ownership of the permit may
28 be transferred, but the permit may not be transferred from the
29 permit premises.
30 (d) Except as provided in section 16.3 of this chapter, in addition to
31 the permits issued to the town of Whitestown under subsection (c), the
32 commission may issue to the town of Whitestown not more than:
33 (1) three (3) new three-way permits; and
34 (2) three (3) new two-way permits;
35 under this subsection.
36 (e) The following apply to permits issued under subsection (d):
37 (1) An applicant for a permit under subsection (d)(1) or (d)(2)
38 must be a proprietor, an owner or lessee, or both, of a restaurant
39 located within an economic development area, an area needing
40 redevelopment, or a redevelopment district as established under
41 IC 36-7-14 in a municipality's:
42 (A) downtown redevelopment district; or
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1 (B) downtown economic revitalization area.
2 (2) The cost of an initial permit is forty thousand dollars
3 ($40,000).
4 (3) The total number of active permits issued under subsection (d)
5 may not exceed the six (6) permits allocated by permit type, as set
6 forth in that subsection.
7 (4) The municipality may adopt an ordinance under
8 IC 7.1-3-19-17 requiring a permit holder to enter into a formal
9 written commitment as a condition of eligibility for a permit. As
10 set forth in IC 7.1-3-19-17(b), a formal written commitment is
11 binding on the permit holder and on any lessee or proprietor of
12 the permit premises.
13 (5) Notwithstanding IC 7.1-3-1.1, if business operations cease at
14 the permit premises for more than six (6) months, the permit shall
15 revert to the commission and the permit holder is not entitled to
16 any refund or other compensation.
17 (6) Except as provided in subdivision (8), the ownership of a
18 permit may not be transferred.
19 (7) A permit may not be transferred from the premises for which
20 the permit was issued.
21 (8) If the area in which the permit issued to a premises under
22 subsection (d)(1) or (d)(2) is located is no longer designated an
23 economic development area, an area needing redevelopment, or
24 a redevelopment district, a permit issued under this section may
25 be renewed, and the ownership of the permit may be transferred,
26 but the permit may not be transferred from the permit premises.
27 (f) Except as provided in section 16.3 of this chapter, in addition
28 to the permits issued to the city of Noblesville under subsection (c),
29 the commission may issue to the city of Noblesville not more than
30 ten (10) new three-way permits under this subsection. The new
31 three-way permits may be issued as follows:
32 (1) Three (3) new three-way permits in 2024.
33 (2) Three (3) new three-way permits in 2025.
34 (3) Four (4) new three-way permits in 2026.
35 If the commission does not issue the amount of three-way permits
36 allowed in subdivisions (1) through (3) in that year, any unissued
37 permits will roll over and may be issued in a subsequent year.
38 (g) The following apply to permits issued under subsection (f):
39 (1) An applicant for a permit under subsection (f) must be a
40 proprietor, an owner or lessee, or both, of a restaurant
41 located within an economic development area, an area
42 needing redevelopment, or a redevelopment district as
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1 established under IC 36-7-14 in a municipality's:
2 (A) downtown redevelopment district; or
3 (B) downtown economic revitalization area.
4 (2) The cost of an initial permit is forty thousand dollars
5 ($40,000).
6 (3) The total number of active permits issued under
7 subsection (f) may not exceed the ten (10) new three-way
8 permits, as set forth in that subsection.
9 (4) The municipality may adopt an ordinance under
10 IC 7.1-3-19-17 requiring a permit holder to enter into a
11 formal written commitment as a condition of eligibility for a
12 permit. As set forth in IC 7.1-3-19-17(b), a formal written
13 commitment is binding on the permit holder and on any lessee
14 or proprietor of the permit premises.
15 (5) Notwithstanding IC 7.1-3-1.1, if business operations cease
16 at the permit premises for more than six (6) months, the
17 permit shall revert to the commission and the permit holder
18 is not entitled to any refund or other compensation.
19 (6) Except as provided in subdivision (8), the ownership of a
20 permit may not be transferred.
21 (7) A permit may not be transferred from the premises for
22 which the permit was issued.
23 (8) If the area in which the permit issued to a premises under
24 subsection (f) is located is no longer designated an economic
25 development area, an area needing redevelopment, or a
26 redevelopment district, a permit issued under this section may
27 be renewed, and the ownership of the permit may be
28 transferred, but the permit may not be transferred from the
29 permit premises.
30 SECTION 9. IC 7.1-3-20-28 IS REPEALED [EFFECTIVE JULY
31 1, 2024]. Sec. 28. A retailer permittee may sell or dispense alcoholic
32 beverages for on-premises consumption only in an outdoor beer garden
33 that:
34 (1) has a bar;
35 (2) is accessible only through the permit premises; and
36 (3) is a defined area that is enclosed by:
37 (A) the outside walls of the permit premises; or
38 (B) a nontransparent wall that is at least seventy-two (72)
39 inches in height.
40 SECTION 10. IC 7.1-3-20-28.5 IS REPEALED [EFFECTIVE JULY
41 1, 2024]. Sec. 28.5. (a) This section applies to the premises of a:
42 (1) civic center permit; or
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1 (2) retailer's permit that operates as a recreational facility offering
2 bowling, arcade games, and outside volleyball courts or other
3 outside recreational games on the licensed premises.
4 (b) In accordance with subsection (c), the holder of a:
5 (1) civic center permit; or
6 (2) retailer's permit described in subsection (a)(2) which has a
7 gross business of at least one million dollars ($1,000,000) in the
8 retail sale of food;
9 may, subject to the approval of the commission, sell or dispense
10 alcoholic beverages for which the permittee holds the appropriate
11 permit, for on-premises consumption only, from a bar that is located on
12 an outside patio, porch, veranda, terrace, or rooftop of a building that
13 is contiguous to the main building of the licensed premises.
14 (c) The holder of the civic center or retailer's permit described in
15 subsection (a)(2) may sell or dispense alcoholic beverages as provided
16 under subsection (b) only if all the following conditions are met:
17 (1) The outside area described in subsection (b) is:
18 (A) part of the licensed premises; and
19 (B) clearly delineated in some manner by a fence, hedge, rail,
20 wall, or similar barrier.
21 (2) Except as provided in IC 7.1-5-7-11, if minors are allowed on
22 the premises:
23 (A) the bar area must be separated from the outside dining
24 area where minors may be served by a structure or barrier that
25 reasonably deters free access and egress, without requirement
26 for doors or gates; and
27 (B) a conspicuous sign must be posted by the barrier described
28 in clause (A) stating that minors may not cross the barrier to
29 enter the bar area.
30 SECTION 11. IC 7.1-3-20-29, AS AMENDED BY P.L.121-2022,
31 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
32 JULY 1, 2024]: Sec. 29. (a) As used in this section, "food hall" means
33 the premises:
34 (1) located within a retail shopping and food service district; and
35 (2) to which a master permit is issued under this section.
36 (b) As used in this section, "master permit" means a food hall master
37 permit issued under this section.
38 (c) Except as provided in subsection (d), the commission may issue
39 a master permit, which is a three-way retailer's permit for on premises
40 consumption, to a food hall located in a retail shopping and food
41 service district that meets the following requirements:
42 (1) The district consists of an area that:
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1 (A) has been redeveloped, renovated, or environmentally
2 remediated in part with grants from the federal, state, or local
3 government under IC 36-7-11; and
4 (B) is entirely located within an incorporated city or town.
5 (2) The district consists of land and a building or group of
6 buildings that are part of a common development.
7 (3) The district is located within a locally designated historic
8 district under IC 36-7-11 established by a city or town ordinance.
9 (4) The district contains at least one (1) building that:
10 (A) is on the list of the National Register for Historic Places or
11 qualifies as a historic building worthy of preservation under
12 IC 36-7-11; and
13 (B) has been approved for present commercial use by the local
14 historic preservation commission of the city or town.
15 (d) Subsection (c)(3) and (c)(4) does not apply to a food hall that
16 meets one (1) of the following descriptions:
17 (1) The food hall:
18 (A) is located within a certified technology park established
19 under IC 36-7-32; and
20 (2) (B) operates within a previously vacant building that was,
21 or within a complex of buildings that were:
22 (A) (i) placed in service at least twenty-five (25) years prior
23 to the redevelopment of the building or buildings; and
24 (B) (ii) owned by a unit of local government or a public
25 charitable trust prior to redevelopment.
26 (2) The food hall:
27 (A) contains not less than ten (10) distinct nonaffiliated
28 food and beverage vendors; and
29 (B) is located within a mixed use development or
30 redevelopment project with a total investment of at least
31 one hundred million dollars ($100,000,000).
32 (e) The commission may issue a master permit to the owner or
33 developer of a food hall. The food hall constitutes a single permit
34 premises that:
35 (1) contains not less than seven (7) distinct, nonaffiliated retail
36 food and beverage vendors, each of which may apply for a food
37 hall vendor permit under section 30 of this chapter; and
38 (2) has a seating capacity of the type traditionally designed for
39 food and drink for at least one hundred (100) people.
40 (f) An applicant for a master permit shall post notice and appear in
41 front of the local board in which the permit premises is situated. The
42 local board shall determine the eligibility of the applicant under this
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1 section and hear evidence in support of or against the master permit
2 location. A master permit may not be transferred to a location outside
3 the food hall permit premises. A permit that is inactive for more than
4 six (6) months shall revert back to the commission or may be deposited
5 with the commission under IC 7.1-3-1.1 with the commission's
6 permission.
7 (g) A master permit authorized by this section may be issued
8 without regard to the proximity provisions of IC 7.1-3-21-11 or the
9 quota provisions of IC 7.1-3-22.
10 (h) The commission may not require physical separation between a
11 bar area and a dining area in a food hall.
12 SECTION 12. IC 7.1-3-21-0.1 IS REPEALED [EFFECTIVE JULY
13 1, 2024]. Sec. 0.1. Notwithstanding the amendments made to sections
14 3, 5, 5.2, and 5.4 of this chapter by P.L.72-2004, the residency
15 requirement of five (5) years for beer wholesalers under sections 3, 5,
16 5.2, and 5.4 of this chapter (as those provisions existed on June 30,
17 2004) shall remain in effect for all contracts entered into before July 1,
18 2004, under which a permit is to be transferred from an Indiana
19 resident to a person who was not an Indiana resident at the time of
20 execution of the contract.
21 SECTION 13. IC 7.1-3-21-15, AS AMENDED BY P.L.79-2022,
22 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
23 JULY 1, 2024]: Sec. 15. (a) This section does not apply to an
24 employee's permit under IC 7.1-3-18-9.
25 (b) The commission shall not renew or transfer a wholesaler,
26 retailer, dealer, or other permit of any type if the applicant:
27 (1) is seeking a renewal and the applicant has not paid all the
28 property taxes under IC 6-1.1 and the innkeeper's tax under IC 6-9
29 that are due currently;
30 (2) is seeking a transfer and the applicant has not paid all the
31 property taxes under IC 6-1.1 and innkeeper's tax under IC 6-9 for
32 the assessment periods during which the transferor held the
33 permit;
34 (3) is seeking a renewal or transfer and is at least thirty (30) days
35 delinquent in remitting state gross retail taxes under IC 6-2.5 or
36 withholding taxes required to be remitted under IC 6-3-4;
37 (4) is on the most recent tax warrant list supplied to the
38 commission by the department of state revenue; or
39 (5) does not provide the commission with property tax clearance
40 Form 1. with an embossed seal from the county treasurer.
41 (c) The commission shall renew or transfer a permit that the
42 commission denied under subsection (b) when the appropriate one (1)
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1 of the following occurs:
2 (1) The person, if seeking a renewal, provides to the commission
3 a statement from the county treasurer of the county in which the
4 property of the applicant was assessed indicating that all the
5 property taxes under IC 6-1.1 and, in a county where the county
6 treasurer collects the innkeeper's tax, the innkeeper's tax under
7 IC 6-9 that were delinquent have been paid.
8 (2) The person, if seeking a transfer of ownership, provides to the
9 commission a statement from the county treasurer of the county
10 in which the property of the transferor was assessed indicating
11 that all the property taxes under IC 6-1.1 and, in a county where
12 the county treasurer collects the innkeeper's tax, the innkeeper's
13 tax under IC 6-9 have been paid for the assessment periods during
14 which the transferor held the permit.
15 (3) The person provides to the commission a statement from the
16 commissioner of the department of state revenue indicating that
17 the person's tax warrant has been satisfied, including any
18 delinquency in innkeeper's tax if the state collects the innkeeper's
19 tax for the county in which the person seeks the permit.
20 (4) The commission receives a notice from the commissioner of
21 the department of state revenue under IC 6-8.1-8-2(k).
22 (5) The commission receives a notice from the commissioner of
23 the department of state revenue stating that the state gross retail
24 and withholding taxes described in subsection (b)(3) have been
25 remitted to the department.
26 (d) The commission shall not issue a new wholesaler, retailer,
27 dealer, or other permit of any type if the applicant:
28 (1) has not paid all the applicant's property taxes under IC 6-1.1
29 and innkeeper's tax under IC 6-9 that are due;
30 (2) is at least thirty (30) days delinquent in remitting state gross
31 retail taxes under IC 6-2.5 or withholding taxes required to be
32 remitted under IC 6-3-4;
33 (3) is on the most recent tax warrant list supplied to the
34 commission by the department of state revenue; or
35 (4) does not provide the commission with property tax clearance
36 Form 1. with an embossed seal from the county treasurer.
37 (e) The commission shall issue a new permit that the commission
38 denied under subsection (d) when one (1) of the following occurs:
39 (1) The applicant provides to the commission a statement from
40 the commissioner of the department of state revenue indicating
41 that the applicant's tax warrant has been satisfied, including any
42 delinquency in innkeeper's tax if the state collects the innkeeper's
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1 tax for the county in which the applicant seeks the permit.
2 (2) The commission receives a notice of release from the
3 commissioner of the department of state revenue under
4 IC 6-8.1-8-2(k).
5 (3) The commission receives a notice from the commissioner of
6 the department of state revenue stating that the state gross retail
7 and withholding taxes described in subsection (d)(2) have been
8 remitted to the department.
9 (f) An applicant for issuance of a new permit, renewal, or transfer
10 may not be considered delinquent in the payment of a listed tax (as
11 defined by IC 6-8.1-1-1) if the applicant has filed a proper protest
12 under IC 6-8.1-5-1 contesting the remittance of those taxes. The
13 applicant shall be considered delinquent in the payment of those taxes
14 if the applicant does not remit the taxes owed to the state department
15 of revenue after the later of the following:
16 (1) The expiration of the period in which the applicant may appeal
17 the listed tax to the tax court, in the case of an applicant who does
18 not file a timely appeal of the listed tax.
19 (2) When a decision of the tax court concerning the applicant's
20 appeal of the listed tax becomes final, in the case of an applicant
21 who files a timely appeal of the listed tax.
22 (g) The commission may require that an applicant for the issuance
23 of a new permit, renewal, or transfer of a wholesaler's, retailer's, or
24 dealer's, or other permit of any type furnish proof of the payment of a
25 listed tax (as defined by IC 6-8.1-1-1), tax warrant, or taxes imposed by
26 IC 6-1.1 or receipt of property tax clearance Form 1. with an embossed
27 seal from the county treasurer.
28 (h) The commission may issue to any applicant for renewal of a
29 permit that is delinquent in the payment of a listed tax (as defined in
30 IC 6-8.1-1-1) not more than one (1) ninety (90) day extension of the
31 term of the permit.
32 SECTION 14. IC 7.1-3-23-34 IS AMENDED TO READ AS
33 FOLLOWS [EFFECTIVE JULY 1, 2024]: Sec. 34. Final Action of
34 Commission. The commission shall take final action within ten (10)
35 days after the hearing and enter an appropriate order in the matter and
36 shall notify the applicant, or permittee, of its action by registered mail
37 or electronic communication.
38 SECTION 15. IC 7.1-3-23-45, AS AMENDED BY P.L.207-2013,
39 SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
40 JULY 1, 2024]: Sec. 45. (a) Upon receiving a court order issued under
41 IC 31-16-12-13 (or IC 31-14-12-10 before its repeal), the commission
42 shall:
HB 1197—LS 6558/DI 137 13
1 (1) suspend the employee's permit of; or
2 (2) deny an employee's permit or the renewal of an employee's
3 permit to;
4 the person who is the subject of the order.
5 (b) Upon receiving a court order issued under IC 31-16-12-13 (or
6 IC 31-14-12-10 before its repeal), the commission shall promptly mail
7 a or send electronic notice to the last known mailing or electronic
8 mailing address of the person who is the subject of the order that states
9 the following:
10 (1) That the:
11 (A) person's employee's permit has been suspended, beginning
12 five (5) business days after the date the notice is mailed; sent;
13 and
14 (B) suspension will end ten (10) business days after the
15 commission receives an order from the court that ordered the
16 suspension authorizing reinstatement of the person's
17 employee's permit.
18 (2) That the person has the right to petition for reinstatement of
19 the employee's permit to the court that ordered the suspension.
20 (c) The commission may not reinstate an employee's permit
21 suspended under this section until the commission receives an order
22 from the court that ordered the suspension authorizing reinstatement of
23 the person's employee's permit.
24 SECTION 16. IC 7.1-3-30-1, AS ADDED BY P.L.121-2022,
25 SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
26 JULY 1, 2024]: Sec. 1. The following terms apply throughout this
27 chapter:
28 (1) "Craft manufacturer" means a person who holds:
29 (A) a small brewery permit under IC 7.1-3-2-7(5);
30 (B) a farm winery permit under IC 7.1-3-12; or
31 (C) an artisan distiller's permit under IC 7.1-3-27.
32 (2) "Holder" means a person who holds a temporary craft
33 manufacturer hospitality permit.
34 (3) "Hospitality permit" means a temporary craft manufacturer
35 hospitality permit issued under this chapter.
36 (4) "Host permittee" means a:
37 (A) person who holds:
38 (A) (i) a civic center permit under IC 7.1-3-1-25;
39 (B) (ii) a permit under IC 7.1-3-20-18 through
40 IC 7.1-3-20-21 (hotel);
41 (C) (iii) a permit under IC 7.1-3-21-14 (state fair grounds);
42 (D) (iv) a permit under IC 7.1-3-20-16.8 (economic
HB 1197—LS 6558/DI 137 14
1 development area); or
2 (E) (v) a permit under IC 7.1-3-17.8 (state park); or
3 (B) craft manufacturer.
4 (5) "Temporary event" means an event listed in section 4 of this
5 chapter for which the commission issues a hospitality permit.
6 SECTION 17. IC 7.1-3-31-2, AS ADDED BY P.L.167-2023,
7 SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
8 JULY 1, 2024]: Sec. 2. As used in this chapter, "designated permittee"
9 means a retailer permittee that:
10 (1) has licensed premises holds a retailer or craft manufacturer
11 permit located within a refreshment area;
12 (2) has submitted a completed application to the municipality to
13 participate in the refreshment area as a designated permittee; and
14 (3) is designated by the commission under section 9 of this
15 chapter.
16 SECTION 18. IC 7.1-5-11-1.5, AS AMENDED BY P.L.159-2014,
17 SECTION 87, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
18 JULY 1, 2024]: Sec. 1.5. (a) Except as provided in IC 7.1-3-26, it is
19 unlawful for a person in the business of selling alcoholic beverages in
20 Indiana or outside Indiana to ship or cause to be shipped an alcoholic
21 beverage directly to a person in Indiana who does not hold a valid
22 wholesaler permit under this title. This includes the ordering and
23 selling of alcoholic beverages over a computer network (as defined by
24 IC 35-43-2-3(a)).
25 (b) An in-state or an out-of-state vintner, distiller, brewer, rectifier,
26 or importer that:
27 (1) holds a basic permit from the federal Bureau of Alcohol,
28 Tobacco, Firearms and Explosives; Alcohol and Tobacco Tax
29 and Trade Bureau, or its successor agency; and
30 (2) knowingly violates subsection (a);
31 commits a Class A misdemeanor.
32 (c) A person who is not an in-state or an out-of-state vintner,
33 distiller, brewer, rectifier, or importer that holds a basic permit from the
34 federal Bureau of Alcohol, Tobacco, Firearms and Explosives Alcohol
35 and Tobacco Tax and Trade Bureau, or its successor agency, who
36 knowingly violates subsection (a) commits a Level 6 felony.
37 (d) Upon a determination by the commission that a person has
38 violated subsection (a), a wholesaler may not accept a shipment of
39 alcoholic beverages from the person for a period of up to one (1) year
40 as determined by the commission.
41 (e) If the chairman of the alcohol and tobacco commission or the
42 attorney general determines that a vintner, distiller, brewer, rectifier, or
HB 1197—LS 6558/DI 137 15
1 importer that holds a basic permit from the federal Bureau of Alcohol,
2 Tobacco, Firearms and Explosives Alcohol and Tobacco Tax and
3 Trade Bureau, or its successor agency, has made an illegal shipment
4 of an alcoholic beverage to consumers in Indiana, the chairman shall:
5 (1) notify the federal Bureau of Alcohol, Tobacco, Firearms and
6 Explosives Alcohol and Tobacco Tax and Trade Bureau, or its
7 successor agency, in writing and by certified mail of the official
8 determination that state law has been violated; and
9 (2) request the federal bureau to take appropriate action.
10 (f) The commission shall adopt rules under IC 4-22-2 to implement
11 this section.
HB 1197—LS 6558/DI 137 16
COMMITTEE REPORT
Mr. Speaker: Your Committee on Public Policy, to which was
referred House Bill 1197, 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 8, between lines 29 and 30, begin a new paragraph and insert:
"SECTION 11. IC 7.1-3-20-29, AS AMENDED BY P.L.121-2022,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2024]: Sec. 29. (a) As used in this section, "food hall" means
the premises:
(1) located within a retail shopping and food service district; and
(2) to which a master permit is issued under this section.
(b) As used in this section, "master permit" means a food hall master
permit issued under this section.
(c) Except as provided in subsection (d), the commission may issue
a master permit, which is a three-way retailer's permit for on premises
consumption, to a food hall located in a retail shopping and food
service district that meets the following requirements:
(1) The district consists of an area that:
(A) has been redeveloped, renovated, or environmentally
remediated in part with grants from the federal, state, or local
government under IC 36-7-11; and
(B) is entirely located within an incorporated city or town.
(2) The district consists of land and a building or group of
buildings that are part of a common development.
(3) The district is located within a locally designated historic
district under IC 36-7-11 established by a city or town ordinance.
(4) The district contains at least one (1) building that:
(A) is on the list of the National Register for Historic Places or
qualifies as a historic building worthy of preservation under
IC 36-7-11; and
(B) has been approved for present commercial use by the local
historic preservation commission of the city or town.
(d) Subsection (c)(3) and (c)(4) does not apply to a food hall that
meets one (1) of the following descriptions:
(1) The food hall:
(A) is located within a certified technology park established
under IC 36-7-32; and
(2) (B) operates within a previously vacant building that was,
or within a complex of buildings that were:
(A) (i) placed in service at least twenty-five (25) years prior
HB 1197—LS 6558/DI 137 17
to the redevelopment of the building or buildings; and
(B) (ii) owned by a unit of local government or a public
charitable trust prior to redevelopment.
(2) The food hall:
(A) contains not less than ten (10) distinct nonaffiliated
food and beverage vendors; and
(B) is located within a mixed use development or
redevelopment project with a total investment of at least
one hundred million dollars ($100,000,000).
(e) The commission may issue a master permit to the owner or
developer of a food hall. The food hall constitutes a single permit
premises that:
(1) contains not less than seven (7) distinct, nonaffiliated retail
food and beverage vendors, each of which may apply for a food
hall vendor permit under section 30 of this chapter; and
(2) has a seating capacity of the type traditionally designed for
food and drink for at least one hundred (100) people.
(f) An applicant for a master permit shall post notice and appear in
front of the local board in which the permit premises is situated. The
local board shall determine the eligibility of the applicant under this
section and hear evidence in support of or against the master permit
location. A master permit may not be transferred to a location outside
the food hall permit premises. A permit that is inactive for more than
six (6) months shall revert back to the commission or may be deposited
with the commission under IC 7.1-3-1.1 with the commission's
permission.
(g) A master permit authorized by this section may be issued
without regard to the proximity provisions of IC 7.1-3-21-11 or the
quota provisions of IC 7.1-3-22.
(h) The commission may not require physical separation between a
bar area and a dining area in a food hall.".
Page 8, between lines 38 and 39, begin a new paragraph and insert:
"SECTION 13. IC 7.1-3-21-15, AS AMENDED BY P.L.79-2022,
SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2024]: Sec. 15. (a) This section does not apply to an
employee's permit under IC 7.1-3-18-9.
(b) The commission shall not renew or transfer a wholesaler,
retailer, dealer, or other permit of any type if the applicant:
(1) is seeking a renewal and the applicant has not paid all the
property taxes under IC 6-1.1 and the innkeeper's tax under IC 6-9
that are due currently;
(2) is seeking a transfer and the applicant has not paid all the
HB 1197—LS 6558/DI 137 18
property taxes under IC 6-1.1 and innkeeper's tax under IC 6-9 for
the assessment periods during which the transferor held the
permit;
(3) is seeking a renewal or transfer and is at least thirty (30) days
delinquent in remitting state gross retail taxes under IC 6-2.5 or
withholding taxes required to be remitted under IC 6-3-4;
(4) is on the most recent tax warrant list supplied to the
commission by the department of state revenue; or
(5) does not provide the commission with property tax clearance
Form 1. with an embossed seal from the county treasurer.
(c) The commission shall renew or transfer a permit that the
commission denied under subsection (b) when the appropriate one (1)
of the following occurs:
(1) The person, if seeking a renewal, provides to the commission
a statement from the county treasurer of the county in which the
property of the applicant was assessed indicating that all the
property taxes under IC 6-1.1 and, in a county where the county
treasurer collects the innkeeper's tax, the innkeeper's tax under
IC 6-9 that were delinquent have been paid.
(2) The person, if seeking a transfer of ownership, provides to the
commission a statement from the county treasurer of the county
in which the property of the transferor was assessed indicating
that all the property taxes under IC 6-1.1 and, in a county where
the county treasurer collects the innkeeper's tax, the innkeeper's
tax under IC 6-9 have been paid for the assessment periods during
which the transferor held the permit.
(3) The person provides to the commission a statement from the
commissioner of the department of state revenue indicating that
the person's tax warrant has been satisfied, including any
delinquency in innkeeper's tax if the state collects the innkeeper's
tax for the county in which the person seeks the permit.
(4) The commission receives a notice from the commissioner of
the department of state revenue under IC 6-8.1-8-2(k).
(5) The commission receives a notice from the commissioner of
the department of state revenue stating that the state gross retail
and withholding taxes described in subsection (b)(3) have been
remitted to the department.
(d) The commission shall not issue a new wholesaler, retailer,
dealer, or other permit of any type if the applicant:
(1) has not paid all the applicant's property taxes under IC 6-1.1
and innkeeper's tax under IC 6-9 that are due;
(2) is at least thirty (30) days delinquent in remitting state gross
HB 1197—LS 6558/DI 137 19
retail taxes under IC 6-2.5 or withholding taxes required to be
remitted under IC 6-3-4;
(3) is on the most recent tax warrant list supplied to the
commission by the department of state revenue; or
(4) does not provide the commission with property tax clearance
Form 1. with an embossed seal from the county treasurer.
(e) The commission shall issue a new permit that the commission
denied under subsection (d) when one (1) of the following occurs:
(1) The applicant provides to the commission a statement from
the commissioner of the department of state revenue indicating
that the applicant's tax warrant has been satisfied, including any
delinquency in innkeeper's tax if the state collects the innkeeper's
tax for the county in which the applicant seeks the permit.
(2) The commission receives a notice of release from the
commissioner of the department of state revenue under
IC 6-8.1-8-2(k).
(3) The commission receives a notice from the commissioner of
the department of state revenue stating that the state gross retail
and withholding taxes described in subsection (d)(2) have been
remitted to the department.
(f) An applicant for issuance of a new permit, renewal, or transfer
may not be considered delinquent in the payment of a listed tax (as
defined by IC 6-8.1-1-1) if the applicant has filed a proper protest
under IC 6-8.1-5-1 contesting the remittance of those taxes. The
applicant shall be considered delinquent in the payment of those taxes
if the applicant does not remit the taxes owed to the state department
of revenue after the later of the following:
(1) The expiration of the period in which the applicant may appeal
the listed tax to the tax court, in the case of an applicant who does
not file a timely appeal of the listed tax.
(2) When a decision of the tax court concerning the applicant's
appeal of the listed tax becomes final, in the case of an applicant
who files a timely appeal of the listed tax.
(g) The commission may require that an applicant for the issuance
of a new permit, renewal, or transfer of a wholesaler's, retailer's, or
dealer's, or other permit of any type furnish proof of the payment of a
listed tax (as defined by IC 6-8.1-1-1), tax warrant, or taxes imposed by
IC 6-1.1 or receipt of property tax clearance Form 1. with an embossed
seal from the county treasurer.
(h) The commission may issue to any applicant for renewal of a
permit that is delinquent in the payment of a listed tax (as defined in
IC 6-8.1-1-1) not more than one (1) ninety (90) day extension of the
HB 1197—LS 6558/DI 137 20
term of the permit.".
Page 9, between lines 30 and 31, begin a new paragraph and insert:
"SECTION 16. IC 7.1-3-30-1, AS ADDED BY P.L.121-2022,
SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2024]: Sec. 1. The following terms apply throughout this
chapter:
(1) "Craft manufacturer" means a person who holds:
(A) a small brewery permit under IC 7.1-3-2-7(5);
(B) a farm winery permit under IC 7.1-3-12; or
(C) an artisan distiller's permit under IC 7.1-3-27.
(2) "Holder" means a person who holds a temporary craft
manufacturer hospitality permit.
(3) "Hospitality permit" means a temporary craft manufacturer
hospitality permit issued under this chapter.
(4) "Host permittee" means a:
(A) person who holds:
(A) (i) a civic center permit under IC 7.1-3-1-25;
(B) (ii) a permit under IC 7.1-3-20-18 through
IC 7.1-3-20-21 (hotel);
(C) (iii) a permit under IC 7.1-3-21-14 (state fair grounds);
(D) (iv) a permit under IC 7.1-3-20-16.8 (economic
development area); or
(E) (v) a permit under IC 7.1-3-17.8 (state park); or
(B) craft manufacturer.
(5) "Temporary event" means an event listed in section 4 of this
chapter for which the commission issues a hospitality permit.".
Renumber all SECTIONS consecutively.
and when so amended that said bill do pass.
(Reference is to HB 1197 as introduced.)
MANNING
Committee Vote: yeas 13, nays 0.
HB 1197—LS 6558/DI 137