*EH1197.1*
February 16, 2024
ENGROSSED
HOUSE BILL No. 1197
_____
DIGEST OF HB 1197 (Updated February 14, 2024 2:16 pm - DI 137)
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. Amends certain provisions
regarding the sale of alcoholic beverages from a bar of a restaurant for
(Continued next page)
Effective: July 1, 2024.
Manning, Mayfield, Summers
(SENATE SPONSORS — ALTING, WALKER K, BALDWIN, MESSMER,
NIEZGODSKI)
January 9, 2024, read first time and referred to Committee on Public Policy.
January 23, 2024, amended, reported — Do Pass.
January 25, 2024, read second time, ordered engrossed. Engrossed.
January 29, 2024, read third time, passed. Yeas 93, nays 4.
SENATE ACTION
February 5, 2024, read first time and referred to Committee on Public Policy.
February 15, 2024, amended, reported favorably — Do Pass.
EH 1197—LS 6558/DI 137 Digest Continued
on-premises consumption. Allows a designated smoking area on the
outside patio or terrace of a hotel if: (1) the designated smoking area is
delineated from the rest of the outside patio or terrace by a barrier that
is at least 18 inches in height; (2) the designated smoking area is
located at least 20 feet from any entrance to the hotel; and (3)
individuals less than 21 years of age are not allowed in the designated
smoking area. 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.
EH 1197—LS 6558/DI 137EH 1197—LS 6558/DI 137 February 16, 2024
Second Regular Session of the 123rd General Assembly (2024)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
Constitution) is being amended, the text of the existing provision will appear in this style type,
additions will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional
provision adopted), the text of the new provision will appear in this style type. Also, the
word NEW will appear in that style type in the introductory clause of each SECTION that adds
a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
between statutes enacted by the 2023 Regular Session of the General Assembly.
ENGROSSED
HOUSE BILL No. 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
EH 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
EH 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;
EH 1197—LS 6558/DI 137 4
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.
EH 1197—LS 6558/DI 137 5
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
EH 1197—LS 6558/DI 137 6
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
EH 1197—LS 6558/DI 137 7
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 (h) Except as provided in section 16.3 of this chapter, the
31 commission may issue new three-way permits as follows:
32 (1) Two (2) new three-way permits to the city of Delphi.
33 (2) Two (2) new three-way permits to the Hoosier Heartland
34 Corridor Overlay District (as created by Carroll County
35 Ordinance No. 2009-15).
36 (i) The following apply to permits issued under subsection (h):
37 (1) An applicant for a permit under subsection (h) must be a
38 proprietor, an owner or lessee, or both, of a restaurant
39 located within an economic development area, an area
40 needing redevelopment, or a redevelopment district as
41 established under IC 36-7-14 in a municipality's:
42 (A) downtown redevelopment district; or
EH 1197—LS 6558/DI 137 8
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
5 subsection (h) may not exceed the four (4) new three-way
6 permits, as set 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
9 formal written commitment as a condition of eligibility for a
10 permit. As set forth in IC 7.1-3-19-17(b), a formal written
11 commitment is binding on the permit holder and on any lessee
12 or proprietor of the permit premises.
13 (5) Notwithstanding IC 7.1-3-1.1, if business operations cease
14 at the permit premises for more than six (6) months, the
15 permit shall revert to the commission and the permit holder
16 is not entitled to 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
20 which the permit was issued.
21 (8) If the area in which the permit issued to a premises under
22 subsection (h) is located is no longer designated an economic
23 development area, an area needing redevelopment, or a
24 redevelopment district, a permit issued under this section may
25 be renewed, and the ownership of the permit may be
26 transferred, but the permit may not be transferred from the
27 permit premises.
28 SECTION 9. IC 7.1-3-20-27, AS AMENDED BY P.L.167-2023,
29 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
30 JULY 1, 2024]: Sec. 27. (a) This section applies to the premises of a
31 restaurant or hotel.
32 (b) Subject to subsection (c), the holder of a retailer's permit that is
33 issued for the premises of a restaurant or hotel may sell or dispense,
34 for on-premises consumption only, alcoholic beverages, for which the
35 permittee holds the appropriate permit, from either:
36 (1) a bar located on the licensed premises; or
37 (2) a service window with a three (3) foot permanent barrier
38 located within one hundred seventy-five (175) feet of a bar
39 located on the licensed premises;
40 that opens to an outside patio or terrace that is contiguous to the main
41 building of the licensed premises of the restaurant or hotel.
42 (c) The holder of a retailer's permit that is issued for the premises of
EH 1197—LS 6558/DI 137 9
1 a restaurant or hotel may sell or dispense alcoholic beverages as
2 provided under subsection (b) only if all the following conditions are
3 met:
4 (1) The patio or terrace area described in subsection (b) is:
5 (A) part of the licensed premises; and
6 (B) clearly delineated and completely enclosed on all sides by
7 a barrier that is at least eighteen (18) inches in height.
8 (2) Minors are allowed on the licensed premises at an outside
9 patio or terrace that contains a bar under subsection (b) only in
10 accordance with IC 7.1-5-7-11.
11 SECTION 10. IC 7.1-3-20-28 IS REPEALED [EFFECTIVE JULY
12 1, 2024]. Sec. 28. A retailer permittee may sell or dispense alcoholic
13 beverages for on-premises consumption only in an outdoor beer garden
14 that:
15 (1) has a bar;
16 (2) is accessible only through the permit premises; and
17 (3) is a defined area that is enclosed by:
18 (A) the outside walls of the permit premises; or
19 (B) a nontransparent wall that is at least seventy-two (72)
20 inches in height.
21 SECTION 11. IC 7.1-3-20-28.5 IS REPEALED [EFFECTIVE JULY
22 1, 2024]. Sec. 28.5. (a) This section applies to the premises of a:
23 (1) civic center permit; or
24 (2) retailer's permit that operates as a recreational facility offering
25 bowling, arcade games, and outside volleyball courts or other
26 outside recreational games on the licensed premises.
27 (b) In accordance with subsection (c), the holder of a:
28 (1) civic center permit; or
29 (2) retailer's permit described in subsection (a)(2) which has a
30 gross business of at least one million dollars ($1,000,000) in the
31 retail sale of food;
32 may, subject to the approval of the commission, sell or dispense
33 alcoholic beverages for which the permittee holds the appropriate
34 permit, for on-premises consumption only, from a bar that is located on
35 an outside patio, porch, veranda, terrace, or rooftop of a building that
36 is contiguous to the main building of the licensed premises.
37 (c) The holder of the civic center or retailer's permit described in
38 subsection (a)(2) may sell or dispense alcoholic beverages as provided
39 under subsection (b) only if all the following conditions are met:
40 (1) The outside area described in subsection (b) is:
41 (A) part of the licensed premises; and
42 (B) clearly delineated in some manner by a fence, hedge, rail,
EH 1197—LS 6558/DI 137 10
1 wall, or similar barrier.
2 (2) Except as provided in IC 7.1-5-7-11, if minors are allowed on
3 the premises:
4 (A) the bar area must be separated from the outside dining
5 area where minors may be served by a structure or barrier that
6 reasonably deters free access and egress, without requirement
7 for doors or gates; and
8 (B) a conspicuous sign must be posted by the barrier described
9 in clause (A) stating that minors may not cross the barrier to
10 enter the bar area.
11 SECTION 12. IC 7.1-3-20-29, AS AMENDED BY P.L.121-2022,
12 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
13 JULY 1, 2024]: Sec. 29. (a) As used in this section, "food hall" means
14 the premises:
15 (1) located within a retail shopping and food service district; and
16 (2) to which a master permit is issued under this section.
17 (b) As used in this section, "master permit" means a food hall master
18 permit issued under this section.
19 (c) Except as provided in subsection (d), the commission may issue
20 a master permit, which is a three-way retailer's permit for on premises
21 consumption, to a food hall located in a retail shopping and food
22 service district that meets the following requirements:
23 (1) The district consists of an area that:
24 (A) has been redeveloped, renovated, or environmentally
25 remediated in part with grants from the federal, state, or local
26 government under IC 36-7-11; and
27 (B) is entirely located within an incorporated city or town.
28 (2) The district consists of land and a building or group of
29 buildings that are part of a common development.
30 (3) The district is located within a locally designated historic
31 district under IC 36-7-11 established by a city or town ordinance.
32 (4) The district contains at least one (1) building that:
33 (A) is on the list of the National Register for Historic Places or
34 qualifies as a historic building worthy of preservation under
35 IC 36-7-11; and
36 (B) has been approved for present commercial use by the local
37 historic preservation commission of the city or town.
38 (d) Subsection (c)(3) and (c)(4) does not apply to a food hall that
39 meets one (1) of the following descriptions:
40 (1) The food hall:
41 (A) is located within a certified technology park established
42 under IC 36-7-32; and
EH 1197—LS 6558/DI 137 11
1 (2) (B) operates within a previously vacant building that was,
2 or within a complex of buildings that were:
3 (A) (i) placed in service at least twenty-five (25) years prior
4 to the redevelopment of the building or buildings; and
5 (B) (ii) owned by a unit of local government or a public
6 charitable trust prior to redevelopment.
7 (2) The food hall:
8 (A) contains not less than ten (10) distinct nonaffiliated
9 food and beverage vendors; and
10 (B) is located within a mixed use development or
11 redevelopment project with a total investment of at least
12 one hundred million dollars ($100,000,000).
13 (e) The commission may issue a master permit to the owner or
14 developer of a food hall. The food hall constitutes a single permit
15 premises that:
16 (1) contains not less than seven (7) distinct, nonaffiliated retail
17 food and beverage vendors, each of which may apply for a food
18 hall vendor permit under section 30 of this chapter; and
19 (2) has a seating capacity of the type traditionally designed for
20 food and drink for at least one hundred (100) people.
21 (f) An applicant for a master permit shall post notice and appear in
22 front of the local board in which the permit premises is situated. The
23 local board shall determine the eligibility of the applicant under this
24 section and hear evidence in support of or against the master permit
25 location. A master permit may not be transferred to a location outside
26 the food hall permit premises. A permit that is inactive for more than
27 six (6) months shall revert back to the commission or may be deposited
28 with the commission under IC 7.1-3-1.1 with the commission's
29 permission.
30 (g) A master permit authorized by this section may be issued
31 without regard to the proximity provisions of IC 7.1-3-21-11 or the
32 quota provisions of IC 7.1-3-22.
33 (h) The commission may not require physical separation between a
34 bar area and a dining area in a food hall.
35 SECTION 13. IC 7.1-3-21-0.1 IS REPEALED [EFFECTIVE JULY
36 1, 2024]. Sec. 0.1. Notwithstanding the amendments made to sections
37 3, 5, 5.2, and 5.4 of this chapter by P.L.72-2004, the residency
38 requirement of five (5) years for beer wholesalers under sections 3, 5,
39 5.2, and 5.4 of this chapter (as those provisions existed on June 30,
40 2004) shall remain in effect for all contracts entered into before July 1,
41 2004, under which a permit is to be transferred from an Indiana
42 resident to a person who was not an Indiana resident at the time of
EH 1197—LS 6558/DI 137 12
1 execution of the contract.
2 SECTION 14. IC 7.1-3-21-15, AS AMENDED BY P.L.79-2022,
3 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
4 JULY 1, 2024]: Sec. 15. (a) This section does not apply to an
5 employee's permit under IC 7.1-3-18-9.
6 (b) The commission shall not renew or transfer a wholesaler,
7 retailer, dealer, or other permit of any type if the applicant:
8 (1) is seeking a renewal and the applicant has not paid all the
9 property taxes under IC 6-1.1 and the innkeeper's tax under IC 6-9
10 that are due currently;
11 (2) is seeking a transfer and the applicant has not paid all the
12 property taxes under IC 6-1.1 and innkeeper's tax under IC 6-9 for
13 the assessment periods during which the transferor held the
14 permit;
15 (3) is seeking a renewal or transfer and is at least thirty (30) days
16 delinquent in remitting state gross retail taxes under IC 6-2.5 or
17 withholding taxes required to be remitted under IC 6-3-4;
18 (4) is on the most recent tax warrant list supplied to the
19 commission by the department of state revenue; or
20 (5) does not provide the commission with property tax clearance
21 Form 1. with an embossed seal from the county treasurer.
22 (c) The commission shall renew or transfer a permit that the
23 commission denied under subsection (b) when the appropriate one (1)
24 of the following occurs:
25 (1) The person, if seeking a renewal, provides to the commission
26 a statement from the county treasurer of the county in which the
27 property of the applicant was assessed indicating that all the
28 property taxes under IC 6-1.1 and, in a county where the county
29 treasurer collects the innkeeper's tax, the innkeeper's tax under
30 IC 6-9 that were delinquent have been paid.
31 (2) The person, if seeking a transfer of ownership, provides to the
32 commission a statement from the county treasurer of the county
33 in which the property of the transferor was assessed indicating
34 that all the property taxes under IC 6-1.1 and, in a county where
35 the county treasurer collects the innkeeper's tax, the innkeeper's
36 tax under IC 6-9 have been paid for the assessment periods during
37 which the transferor held the permit.
38 (3) The person provides to the commission a statement from the
39 commissioner of the department of state revenue indicating that
40 the person's tax warrant has been satisfied, including any
41 delinquency in innkeeper's tax if the state collects the innkeeper's
42 tax for the county in which the person seeks the permit.
EH 1197—LS 6558/DI 137 13
1 (4) The commission receives a notice from the commissioner of
2 the department of state revenue under IC 6-8.1-8-2(k).
3 (5) The commission receives a notice from the commissioner of
4 the department of state revenue stating that the state gross retail
5 and withholding taxes described in subsection (b)(3) have been
6 remitted to the department.
7 (d) The commission shall not issue a new wholesaler, retailer,
8 dealer, or other permit of any type if the applicant:
9 (1) has not paid all the applicant's property taxes under IC 6-1.1
10 and innkeeper's tax under IC 6-9 that are due;
11 (2) is at least thirty (30) days delinquent in remitting state gross
12 retail taxes under IC 6-2.5 or withholding taxes required to be
13 remitted under IC 6-3-4;
14 (3) is on the most recent tax warrant list supplied to the
15 commission by the department of state revenue; or
16 (4) does not provide the commission with property tax clearance
17 Form 1. with an embossed seal from the county treasurer.
18 (e) The commission shall issue a new permit that the commission
19 denied under subsection (d) when one (1) of the following occurs:
20 (1) The applicant provides to the commission a statement from
21 the commissioner of the department of state revenue indicating
22 that the applicant's tax warrant has been satisfied, including any
23 delinquency in innkeeper's tax if the state collects the innkeeper's
24 tax for the county in which the applicant seeks the permit.
25 (2) The commission receives a notice of release from the
26 commissioner of the department of state revenue under
27 IC 6-8.1-8-2(k).
28 (3) The commission receives a notice from the commissioner of
29 the department of state revenue stating that the state gross retail
30 and withholding taxes described in subsection (d)(2) have been
31 remitted to the department.
32 (f) An applicant for issuance of a new permit, renewal, or transfer
33 may not be considered delinquent in the payment of a listed tax (as
34 defined by IC 6-8.1-1-1) if the applicant has filed a proper protest
35 under IC 6-8.1-5-1 contesting the remittance of those taxes. The
36 applicant shall be considered delinquent in the payment of those taxes
37 if the applicant does not remit the taxes owed to the state department
38 of revenue after the later of the following:
39 (1) The expiration of the period in which the applicant may appeal
40 the listed tax to the tax court, in the case of an applicant who does
41 not file a timely appeal of the listed tax.
42 (2) When a decision of the tax court concerning the applicant's
EH 1197—LS 6558/DI 137 14
1 appeal of the listed tax becomes final, in the case of an applicant
2 who files a timely appeal of the listed tax.
3 (g) The commission may require that an applicant for the issuance
4 of a new permit, renewal, or transfer of a wholesaler's, retailer's, or
5 dealer's, or other permit of any type furnish proof of the payment of a
6 listed tax (as defined by IC 6-8.1-1-1), tax warrant, or taxes imposed by
7 IC 6-1.1 or receipt of property tax clearance Form 1. with an embossed
8 seal from the county treasurer.
9 (h) The commission may issue to any applicant for renewal of a
10 permit that is delinquent in the payment of a listed tax (as defined in
11 IC 6-8.1-1-1) not more than one (1) ninety (90) day extension of the
12 term of the permit.
13 SECTION 15. IC 7.1-3-23-34 IS AMENDED TO READ AS
14 FOLLOWS [EFFECTIVE JULY 1, 2024]: Sec. 34. Final Action of
15 Commission. The commission shall take final action within ten (10)
16 days after the hearing and enter an appropriate order in the matter and
17 shall notify the applicant, or permittee, of its action by registered mail
18 or electronic communication.
19 SECTION 16. IC 7.1-3-23-45, AS AMENDED BY P.L.207-2013,
20 SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
21 JULY 1, 2024]: Sec. 45. (a) Upon receiving a court order issued under
22 IC 31-16-12-13 (or IC 31-14-12-10 before its repeal), the commission
23 shall:
24 (1) suspend the employee's permit of; or
25 (2) deny an employee's permit or the renewal of an employee's
26 permit to;
27 the person who is the subject of the order.
28 (b) Upon receiving a court order issued under IC 31-16-12-13 (or
29 IC 31-14-12-10 before its repeal), the commission shall promptly mail
30 a or send electronic notice to the last known mailing or electronic
31 mailing address of the person who is the subject of the order that states
32 the following:
33 (1) That the:
34 (A) person's employee's permit has been suspended, beginning
35 five (5) business days after the date the notice is mailed; sent;
36 and
37 (B) suspension will end ten (10) business days after the
38 commission receives an order from the court that ordered the
39 suspension authorizing reinstatement of the person's
40 employee's permit.
41 (2) That the person has the right to petition for reinstatement of
42 the employee's permit to the court that ordered the suspension.
EH 1197—LS 6558/DI 137 15
1 (c) The commission may not reinstate an employee's permit
2 suspended under this section until the commission receives an order
3 from the court that ordered the suspension authorizing reinstatement of
4 the person's employee's permit.
5 SECTION 17. IC 7.1-3-30-1, AS ADDED BY P.L.121-2022,
6 SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
7 JULY 1, 2024]: Sec. 1. The following terms apply throughout this
8 chapter:
9 (1) "Craft manufacturer" means a person who holds:
10 (A) a small brewery permit under IC 7.1-3-2-7(5);
11 (B) a farm winery permit under IC 7.1-3-12; or
12 (C) an artisan distiller's permit under IC 7.1-3-27.
13 (2) "Holder" means a person who holds a temporary craft
14 manufacturer hospitality permit.
15 (3) "Hospitality permit" means a temporary craft manufacturer
16 hospitality permit issued under this chapter.
17 (4) "Host permittee" means a:
18 (A) person who holds:
19 (A) (i) a civic center permit under IC 7.1-3-1-25;
20 (B) (ii) a permit under IC 7.1-3-20-18 through
21 IC 7.1-3-20-21 (hotel);
22 (C) (iii) a permit under IC 7.1-3-21-14 (state fair grounds);
23 (D) (iv) a permit under IC 7.1-3-20-16.8 (economic
24 development area); or
25 (E) (v) a permit under IC 7.1-3-17.8 (state park); or
26 (B) craft manufacturer.
27 (5) "Temporary event" means an event listed in section 4 of this
28 chapter for which the commission issues a hospitality permit.
29 SECTION 18. IC 7.1-3-31-2, AS ADDED BY P.L.167-2023,
30 SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
31 JULY 1, 2024]: Sec. 2. As used in this chapter, "designated permittee"
32 means a retailer permittee that:
33 (1) has licensed premises holds a retailer or craft manufacturer
34 permit located within a refreshment area;
35 (2) has submitted a completed application to the municipality to
36 participate in the refreshment area as a designated permittee; and
37 (3) is designated by the commission under section 9 of this
38 chapter.
39 SECTION 19. IC 7.1-5-11-1.5, AS AMENDED BY P.L.159-2014,
40 SECTION 87, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
41 JULY 1, 2024]: Sec. 1.5. (a) Except as provided in IC 7.1-3-26, it is
42 unlawful for a person in the business of selling alcoholic beverages in
EH 1197—LS 6558/DI 137 16
1 Indiana or outside Indiana to ship or cause to be shipped an alcoholic
2 beverage directly to a person in Indiana who does not hold a valid
3 wholesaler permit under this title. This includes the ordering and
4 selling of alcoholic beverages over a computer network (as defined by
5 IC 35-43-2-3(a)).
6 (b) An in-state or an out-of-state vintner, distiller, brewer, rectifier,
7 or importer that:
8 (1) holds a basic permit from the federal Bureau of Alcohol,
9 Tobacco, Firearms and Explosives; Alcohol and Tobacco Tax
10 and Trade Bureau, or its successor agency; and
11 (2) knowingly violates subsection (a);
12 commits a Class A misdemeanor.
13 (c) A person who is not an in-state or an out-of-state vintner,
14 distiller, brewer, rectifier, or importer that holds a basic permit from the
15 federal Bureau of Alcohol, Tobacco, Firearms and Explosives Alcohol
16 and Tobacco Tax and Trade Bureau, or its successor agency, who
17 knowingly violates subsection (a) commits a Level 6 felony.
18 (d) Upon a determination by the commission that a person has
19 violated subsection (a), a wholesaler may not accept a shipment of
20 alcoholic beverages from the person for a period of up to one (1) year
21 as determined by the commission.
22 (e) If the chairman of the alcohol and tobacco commission or the
23 attorney general determines that a vintner, distiller, brewer, rectifier, or
24 importer that holds a basic permit from the federal Bureau of Alcohol,
25 Tobacco, Firearms and Explosives Alcohol and Tobacco Tax and
26 Trade Bureau, or its successor agency, has made an illegal shipment
27 of an alcoholic beverage to consumers in Indiana, the chairman shall:
28 (1) notify the federal Bureau of Alcohol, Tobacco, Firearms and
29 Explosives Alcohol and Tobacco Tax and Trade Bureau, or its
30 successor agency, in writing and by certified mail of the official
31 determination that state law has been violated; and
32 (2) request the federal bureau to take appropriate action.
33 (f) The commission shall adopt rules under IC 4-22-2 to implement
34 this section.
35 SECTION 20. IC 7.1-5-12-5, AS AMENDED BY P.L.49-2020,
36 SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
37 JULY 1, 2024]: Sec. 5. (a) Except as provided in subsection (c) and
38 subject to section 13 of this chapter, smoking may be allowed in the
39 following:
40 (1) A horse racing facility operated under a permit under
41 IC 4-31-5 and any other permanent structure on land owned or
42 leased by the owner of the facility that is adjacent to the facility.
EH 1197—LS 6558/DI 137 17
1 (2) A riverboat (as defined in IC 4-33-2-17) and any other
2 permanent structure that is:
3 (A) owned or leased by the owner of the riverboat; and
4 (B) located on land that is adjacent to:
5 (i) the dock to which the riverboat is moored; or
6 (ii) the land on which the riverboat is situated in the case of
7 a riverboat described in IC 4-33-2-17(2).
8 (3) A facility that operates under a gambling game license under
9 IC 4-35-5 and any other permanent structure on land owned or
10 leased by the owner of the facility that is adjacent to the facility.
11 (4) A satellite facility licensed under IC 4-31-5.5.
12 (5) An establishment owned or leased by a business that meets the
13 following requirements:
14 (A) The business was in business and permitted smoking on
15 December 31, 2012.
16 (B) The business prohibits entry by an individual who is less
17 than twenty-one (21) years of age.
18 (C) The owner or operator of the business holds a beer, liquor,
19 or wine retailer's permit.
20 (D) The business limits smoking in the establishment to
21 smoking with a waterpipe or hookah device.
22 (E) During the preceding calendar year, at least ten percent
23 (10%) of the business's annual gross income was from the sale
24 of loose tobacco for use in a waterpipe or hookah device.
25 (F) The person in charge of the business posts in the
26 establishment conspicuous signs that display the message that
27 cigarette smoking is prohibited.
28 (6) An establishment owned or leased by a business that meets the
29 following requirements:
30 (A) The business prohibits entry by an individual who is less
31 than twenty-one (21) years of age.
32 (B) The owner or operator of the business holds a beer, liquor,
33 or wine retailer's permit.
34 (C) The business limits smoking in the establishment to cigar
35 smoking.
36 (D) During the preceding calendar year, at least ten percent
37 (10%) of the business's annual gross income was from the sale
38 of cigars and the rental of onsite humidors.
39 (E) The person in charge of the business posts in the
40 establishment conspicuous signs that display the message that
41 cigarette smoking is prohibited.
42 (7) A premises owned or leased by and regularly used for the
EH 1197—LS 6558/DI 137 18
1 activities of a business that meets all of the following:
2 (A) The business is exempt from federal income taxation
3 under 26 U.S.C. 501(c).
4 (B) The business:
5 (i) meets the requirements to be considered a club under
6 IC 7.1-3-20-1; or
7 (ii) is a fraternal club (as defined in IC 7.1-3-20-7).
8 (C) The business provides food or alcoholic beverages only to
9 its bona fide members and their guests.
10 (D) The business:
11 (i) provides a separate, enclosed, designated smoking room
12 or area that is adequately ventilated to prevent migration of
13 smoke to nonsmoking areas of the premises;
14 (ii) allows smoking only in the room or area described in
15 item (i);
16 (iii) does not allow an individual who is less than twenty-one
17 (21) years of age to enter into the room or area described in
18 item (i); and
19 (iv) allows a guest in the smoking room or area described in
20 item (i) only when accompanied by a bona fide member of
21 the business.
22 (8) A retail tobacco store used primarily for the sale of tobacco
23 products and tobacco accessories that meets the following
24 requirements:
25 (A) The owner or operator of the store holds a valid tobacco
26 sales certificate issued under IC 7.1-3-18.5.
27 (B) The store prohibits entry by an individual who is less than
28 twenty-one (21) years of age.
29 (C) The sale of products other than tobacco products and
30 tobacco accessories is merely incidental.
31 (D) The sale of tobacco products accounts for at least
32 eighty-five percent (85%) of the store's annual gross sales.
33 (E) Food or beverages are not sold in a manner that requires
34 consumption on the premises, and there is not an area set aside
35 for customers to consume food or beverages on the premises.
36 (9) A bar or tavern:
37 (A) for which a permittee holds:
38 (i) a beer retailer's permit under IC 7.1-3-4;
39 (ii) a liquor retailer's permit under IC 7.1-3-9; or
40 (iii) a wine retailer's permit under IC 7.1-3-14;
41 (B) that does not employ an individual who is less than
42 eighteen (18) years of age;
EH 1197—LS 6558/DI 137 19
1 (C) that does not allow an individual who:
2 (i) is less than twenty-one (21) years of age; and
3 (ii) is not an employee of the bar or tavern;
4 to enter any area of the bar or tavern; and
5 (D) that is not located in a business that would otherwise be
6 subject to this chapter.
7 (10) A cigar manufacturing facility that does not offer retail sales.
8 (11) A premises of a cigar specialty store to which all of the
9 following apply:
10 (A) The owner or operator of the store holds a valid tobacco
11 sales certificate issued under IC 7.1-3-18.5.
12 (B) The sale of tobacco products and tobacco accessories
13 account for at least fifty percent (50%) of the store's annual
14 gross sales.
15 (C) The store has a separate, enclosed, designated smoking
16 room that is adequately ventilated to prevent migration of
17 smoke to nonsmoking areas.
18 (D) Smoking is allowed only in the room described in clause
19 (C).
20 (E) Individuals who are less than twenty-one (21) years of age
21 are prohibited from entering into the room described in clause
22 (C).
23 (F) Cigarette smoking is not allowed on the premises of the
24 store.
25 (G) The owner or operator of the store posts a conspicuous
26 sign on the premises of the store that displays the message that
27 cigarette smoking is prohibited.
28 (H) The store does not prepare any food or beverage that
29 would require a certified food protection manager under
30 IC 16-42-5.2.
31 (12) The premises of a business that is located in the business
32 owner's private residence (as defined in IC 3-5-2-42.5) if the only
33 employees of the business who work in the residence are the
34 owner and other individuals who reside in the residence.
35 (13) That part of a hotel designated as an outside patio or
36 terrace that contains a bar under IC 7.1-3-20-27, to which all
37 of the following apply:
38 (A) The designated smoking area on the outside patio or
39 terrace is delineated from the rest of the outside patio or
40 terrace by a barrier that is at least eighteen (18) inches in
41 height.
42 (B) The designated smoking area is located at least twenty
EH 1197—LS 6558/DI 137 20
1 (20) feet from any entrance to the hotel.
2 (C) Individuals less than twenty-one (21) years of age are
3 not allowed in the designated smoking area.
4 (b) The owner, operator, manager, or official in charge of an
5 establishment or premises in which smoking is allowed under this
6 section shall post conspicuous signs in the establishment that read
7 "WARNING: Smoking Is Allowed In This Establishment" or other
8 similar language.
9 (c) This section does not allow smoking in the following enclosed
10 areas of an establishment or premises described in subsection (a)(1)
11 through (a)(11):
12 (1) Any hallway, elevator, or other common area where an
13 individual who is less than twenty-one (21) years of age is
14 permitted.
15 (2) Any room that is intended for use by an individual who is less
16 than twenty-one (21) years of age.
17 (d) The owner, operator, or manager of an establishment or premises
18 that is listed under subsection (a) and that allows smoking shall provide
19 a verified statement to the commission that states that the establishment
20 or premises qualifies for the exemption. The commission may require
21 the owner, operator, or manager of an establishment or premises to
22 provide documentation or additional information concerning the
23 exemption of the establishment or premises.
EH 1197—LS 6558/DI 137 21
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
EH 1197—LS 6558/DI 137 22
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
EH 1197—LS 6558/DI 137 23
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
EH 1197—LS 6558/DI 137 24
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
EH 1197—LS 6558/DI 137 25
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.
_____
COMMITTEE REPORT
Madam President: The Senate Committee on Public Policy, to which
was referred House Bill No. 1197, has had the same under
consideration and begs leave to report the same back to the Senate with
EH 1197—LS 6558/DI 137 26
the recommendation that said bill be AMENDED as follows:
Page 7, between lines 29 and 30, begin a new paragraph and insert:
"(h) Except as provided in section 16.3 of this chapter, the
commission may issue new three-way permits as follows:
(1) Two (2) new three-way permits to the city of Delphi.
(2) Two (2) new three-way permits to the Hoosier Heartland
Corridor Overlay District (as created by Carroll County
Ordinance No. 2009-15).
(i) The following apply to permits issued under subsection (h):
(1) An applicant for a permit under subsection (h) must be a
proprietor, an owner or lessee, or both, of a restaurant
located within an economic development area, an area
needing redevelopment, or a redevelopment district as
established under IC 36-7-14 in a municipality's:
(A) downtown redevelopment district; or
(B) downtown economic revitalization area.
(2) The cost of an initial permit is forty thousand dollars
($40,000).
(3) The total number of active permits issued under
subsection (h) may not exceed the four (4) new three-way
permits, as set forth in that subsection.
(4) The municipality may adopt an ordinance under
IC 7.1-3-19-17 requiring a permit holder to enter into a
formal written commitment as a condition of eligibility for a
permit. As set forth in IC 7.1-3-19-17(b), a formal written
commitment is binding on the permit holder and on any lessee
or proprietor of the permit premises.
(5) Notwithstanding IC 7.1-3-1.1, if business operations cease
at the permit premises for more than six (6) months, the
permit shall revert to the commission and the permit holder
is not entitled to any refund or other compensation.
(6) Except as provided in subdivision (8), the ownership of a
permit may not be transferred.
(7) A permit may not be transferred from the premises for
which the permit was issued.
(8) If the area in which the permit issued to a premises under
subsection (h) is located is no longer designated an economic
development area, an area needing redevelopment, or a
redevelopment district, a permit issued under this section may
be renewed, and the ownership of the permit may be
transferred, but the permit may not be transferred from the
permit premises.
EH 1197—LS 6558/DI 137 27
SECTION 9. IC 7.1-3-20-27, AS AMENDED BY P.L.167-2023,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2024]: Sec. 27. (a) This section applies to the premises of a
restaurant or hotel.
(b) Subject to subsection (c), the holder of a retailer's permit that is
issued for the premises of a restaurant or hotel may sell or dispense,
for on-premises consumption only, alcoholic beverages, for which the
permittee holds the appropriate permit, from either:
(1) a bar located on the licensed premises; or
(2) a service window with a three (3) foot permanent barrier
located within one hundred seventy-five (175) feet of a bar
located on the licensed premises;
that opens to an outside patio or terrace that is contiguous to the main
building of the licensed premises of the restaurant or hotel.
(c) The holder of a retailer's permit that is issued for the premises of
a restaurant or hotel may sell or dispense alcoholic beverages as
provided under subsection (b) only if all the following conditions are
met:
(1) The patio or terrace area described in subsection (b) is:
(A) part of the licensed premises; and
(B) clearly delineated and completely enclosed on all sides by
a barrier that is at least eighteen (18) inches in height.
(2) Minors are allowed on the licensed premises at an outside
patio or terrace that contains a bar under subsection (b) only in
accordance with IC 7.1-5-7-11.".
Page 15, after line 11, begin a new paragraph and insert:
"SECTION 20. IC 7.1-5-12-5, AS AMENDED BY P.L.49-2020,
SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2024]: Sec. 5. (a) Except as provided in subsection (c) and
subject to section 13 of this chapter, smoking may be allowed in the
following:
(1) A horse racing facility operated under a permit under
IC 4-31-5 and any other permanent structure on land owned or
leased by the owner of the facility that is adjacent to the facility.
(2) A riverboat (as defined in IC 4-33-2-17) and any other
permanent structure that is:
(A) owned or leased by the owner of the riverboat; and
(B) located on land that is adjacent to:
(i) the dock to which the riverboat is moored; or
(ii) the land on which the riverboat is situated in the case of
a riverboat described in IC 4-33-2-17(2).
(3) A facility that operates under a gambling game license under
EH 1197—LS 6558/DI 137 28
IC 4-35-5 and any other permanent structure on land owned or
leased by the owner of the facility that is adjacent to the facility.
(4) A satellite facility licensed under IC 4-31-5.5.
(5) An establishment owned or leased by a business that meets the
following requirements:
(A) The business was in business and permitted smoking on
December 31, 2012.
(B) The business prohibits entry by an individual who is less
than twenty-one (21) years of age.
(C) The owner or operator of the business holds a beer, liquor,
or wine retailer's permit.
(D) The business limits smoking in the establishment to
smoking with a waterpipe or hookah device.
(E) During the preceding calendar year, at least ten percent
(10%) of the business's annual gross income was from the sale
of loose tobacco for use in a waterpipe or hookah device.
(F) The person in charge of the business posts in the
establishment conspicuous signs that display the message that
cigarette smoking is prohibited.
(6) An establishment owned or leased by a business that meets the
following requirements:
(A) The business prohibits entry by an individual who is less
than twenty-one (21) years of age.
(B) The owner or operator of the business holds a beer, liquor,
or wine retailer's permit.
(C) The business limits smoking in the establishment to cigar
smoking.
(D) During the preceding calendar year, at least ten percent
(10%) of the business's annual gross income was from the sale
of cigars and the rental of onsite humidors.
(E) The person in charge of the business posts in the
establishment conspicuous signs that display the message that
cigarette smoking is prohibited.
(7) A premises owned or leased by and regularly used for the
activities of a business that meets all of the following:
(A) The business is exempt from federal income taxation
under 26 U.S.C. 501(c).
(B) The business:
(i) meets the requirements to be considered a club under
IC 7.1-3-20-1; or
(ii) is a fraternal club (as defined in IC 7.1-3-20-7).
(C) The business provides food or alcoholic beverages only to
EH 1197—LS 6558/DI 137 29
its bona fide members and their guests.
(D) The business:
(i) provides a separate, enclosed, designated smoking room
or area that is adequately ventilated to prevent migration of
smoke to nonsmoking areas of the premises;
(ii) allows smoking only in the room or area described in
item (i);
(iii) does not allow an individual who is less than twenty-one
(21) years of age to enter into the room or area described in
item (i); and
(iv) allows a guest in the smoking room or area described in
item (i) only when accompanied by a bona fide member of
the business.
(8) A retail tobacco store used primarily for the sale of tobacco
products and tobacco accessories that meets the following
requirements:
(A) The owner or operator of the store holds a valid tobacco
sales certificate issued under IC 7.1-3-18.5.
(B) The store prohibits entry by an individual who is less than
twenty-one (21) years of age.
(C) The sale of products other than tobacco products and
tobacco accessories is merely incidental.
(D) The sale of tobacco products accounts for at least
eighty-five percent (85%) of the store's annual gross sales.
(E) Food or beverages are not sold in a manner that requires
consumption on the premises, and there is not an area set aside
for customers to consume food or beverages on the premises.
(9) A bar or tavern:
(A) for which a permittee holds:
(i) a beer retailer's permit under IC 7.1-3-4;
(ii) a liquor retailer's permit under IC 7.1-3-9; or
(iii) a wine retailer's permit under IC 7.1-3-14;
(B) that does not employ an individual who is less than
eighteen (18) years of age;
(C) that does not allow an individual who:
(i) is less than twenty-one (21) years of age; and
(ii) is not an employee of the bar or tavern;
to enter any area of the bar or tavern; and
(D) that is not located in a business that would otherwise be
subject to this chapter.
(10) A cigar manufacturing facility that does not offer retail sales.
(11) A premises of a cigar specialty store to which all of the
EH 1197—LS 6558/DI 137 30
following apply:
(A) The owner or operator of the store holds a valid tobacco
sales certificate issued under IC 7.1-3-18.5.
(B) The sale of tobacco products and tobacco accessories
account for at least fifty percent (50%) of the store's annual
gross sales.
(C) The store has a separate, enclosed, designated smoking
room that is adequately ventilated to prevent migration of
smoke to nonsmoking areas.
(D) Smoking is allowed only in the room described in clause
(C).
(E) Individuals who are less than twenty-one (21) years of age
are prohibited from entering into the room described in clause
(C).
(F) Cigarette smoking is not allowed on the premises of the
store.
(G) The owner or operator of the store posts a conspicuous
sign on the premises of the store that displays the message that
cigarette smoking is prohibited.
(H) The store does not prepare any food or beverage that
would require a certified food protection manager under
IC 16-42-5.2.
(12) The premises of a business that is located in the business
owner's private residence (as defined in IC 3-5-2-42.5) if the only
employees of the business who work in the residence are the
owner and other individuals who reside in the residence.
(13) That part of a hotel designated as an outside patio or
terrace that contains a bar under IC 7.1-3-20-27, to which all
of the following apply:
(A) The designated smoking area on the outside patio or
terrace is delineated from the rest of the outside patio or
terrace by a barrier that is at least eighteen (18) inches in
height.
(B) The designated smoking area is located at least twenty
(20) feet from any entrance to the hotel.
(C) Individuals less than twenty-one (21) years of age are
not allowed in the designated smoking area.
(b) The owner, operator, manager, or official in charge of an
establishment or premises in which smoking is allowed under this
section shall post conspicuous signs in the establishment that read
"WARNING: Smoking Is Allowed In This Establishment" or other
similar language.
EH 1197—LS 6558/DI 137 31
(c) This section does not allow smoking in the following enclosed
areas of an establishment or premises described in subsection (a)(1)
through (a)(11):
(1) Any hallway, elevator, or other common area where an
individual who is less than twenty-one (21) years of age is
permitted.
(2) Any room that is intended for use by an individual who is less
than twenty-one (21) years of age.
(d) The owner, operator, or manager of an establishment or premises
that is listed under subsection (a) and that allows smoking shall provide
a verified statement to the commission that states that the establishment
or premises qualifies for the exemption. The commission may require
the owner, operator, or manager of an establishment or premises to
provide documentation or additional information concerning the
exemption of the establishment or premises.".
Renumber all SECTIONS consecutively.
and when so amended that said bill do pass.
(Reference is to HB 1197 as printed January 23, 2024.)
ALTING, Chairperson
Committee Vote: Yeas 9, Nays 0.
EH 1197—LS 6558/DI 137