LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
200 W. Washington St., Suite 301
Indianapolis, IN 46204
(317) 233-0696
iga.in.gov
FISCAL IMPACT STATEMENT
LS 6558 NOTE PREPARED: Feb 15, 2024
BILL NUMBER: HB 1197 BILL AMENDED: Feb 15, 2024
SUBJECT: Alcohol and Tobacco Commission.
FIRST AUTHOR: Rep. Manning BILL STATUS: CR Adopted - 2
nd
House
FIRST SPONSOR: Sen. Alting
FUNDS AFFECTED:XGENERAL IMPACT: State & Local
XDEDICATED
FEDERAL
Summary of Legislation: (Amended) This bill allows the Alcohol and Tobacco Commission (commission)
to provide notices electronically.
The bill 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.
The bill amends certain provisions regarding the sale of alcoholic beverages from a bar of a restaurant for
on-premises consumption.
The bill 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.
The bill repeals provisions related to beer gardens and patio alcohol service for certain premises. It repeals
a provision concerning residency requirements for beer wholesalers. It removes the requirement that a
property tax clearance form provided to the Alcohol and Tobacco Commission include an embossed seal
from the county treasurer. It also 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.
The bill exempts a food hall that: (1) contains not less than 10 distinct nonaffiliated food and beverage
HB 1197 1 vendors; and (2) is located within a mixed use development or redevelopment project with a total investment
of at least $100 M; from certain requirements that apply to the issuance of a food hall master permit.
The bill includes a craft manufacturer in the definition of a host permittee for purposes of a temporary craft
manufacturer hospitality permit. It modifies the definition of "designated permittee" in relation to a
designated refreshment area.
Effective Date: July 1, 2024.
Explanation of State Expenditures: Alcohol and Tobacco Commission (ATC): The ATC will see a decrease
in administrative costs to switch to electronic notices for its administration processes. In addition, the ATC
will administer the provisions in the bill and issue additional permits, which is expected to be accomplished
within current resources and funding levels.
Explanation of State Revenues: Food Hall Permits: The bill will increase revenue from food hall permits
due to exempting a food hall from certain requirements for the issuance of a master food hall permit. The
initial fee for a food hall master permit is $50,000, and the annual renewal fee is $5,000. The initial fee for
a food hall vendor’s permit is $2,500 if the space is less than 1,000 square feet or $5,000 if the space is less
2,000 square feet. Annual renewal fees for food hall vendor’s permits are $1,000. Revenue from the food hall
permits is deposited into the Enforcement and Administration Fund.
(Revised) Alcoholic Beverage Permits: The bill will increase revenue from ten additional three-way permits
issued to the city of Noblesville, two additional three-way permits to the city of Delphi, and two additional
three-way permits to the Hoosier Heartland Corridor Overlay District. The initial cost for the permit fee is
$40,000. The annual permit fee for a three-way permit is $1,000. Revenue is distributed to the General Fund
(37%); the city, town, or county in which the licensed premises are located (33%); and the Enforcement and
Administration Fund (30%).
Temporary Craft Manufacture Hospitality Permit: The bill allows a craft manufacturer to host a temporary
event for craft manufacturers. Revenue will increase from additional temporary craft manufacturer hospitality
permit fees to the extent a craft manufacturer hosts a temporary event. The fee for a temporary craft
manufacturer hospitality permit is $50 multiplied by the total number of days each craft manufacturer is
expected to participate in the temporary event. Revenue is deposited into the Enforcement and
Administration Fund.
(Revised) Smoking Exception: Under current law, smoking in a prohibited area and failure to comply with
the requirements of the prohibition on smoking are a Class B infractions. The bill allows for a designated
smoking area at an outside patio or terrace of a hotel that meets the requirements of the bill’s provisions. This
provision would decrease Class B infractions for smoking at a hotel’s outside patio or terrace and the failure
to comply with requirements. However, any decrease would be minimal.
The maximum judgment for a Class B infraction is $1,000, which would be deposited in the state General
Fund. The total court fee revenue per case would range between $85.50 and $103. The amount of court fees
deposited will vary depending on whether the case is filed in a court of record or a municipal court. The
following linked document describes the fees and distribution of the revenue: Court fees imposed in criminal,
juvenile, and civil violation cases.
Explanation of Local Expenditures: The municipality may see a minor increase in workload to adopt an
HB 1197 2 ordinance requiring a permit holder to enter into a formal written commitment as a condition of eligibility
for a permit.
Explanation of Local Revenues: Alcoholic Beverage Permits: To the extent that revenue from permit fees
increases, the amounts distributed to local governments would increase.
(Revised) Penalty Provision: If fewer court actions occur and fewer judgements are entered, less revenue
will be collected by certain local units. If the case is filed in a court of record, the county will receive $33.90
and qualifying municipalities will receive a share of $2.10. If the case is filed in a municipal court, the county
receives $20, and the municipality will receive $33.50. The following linked document describes the fees
and distribution of the revenue: Court fees imposed in criminal, juvenile, and civil violation cases.
State Agencies Affected: Alcohol and Tobacco Commission.
Local Agencies Affected: Cities and towns; Trial courts, local law enforcement agencies.
Information Sources: Legislative Services Agency. Indiana Handbook of Taxes, Revenues, and
Appropriations, FY 2023. Indiana Supreme Court, Indiana Trial Court Fee Manual.
Fiscal Analyst: Nate Bodnar, 317-234-9476.
HB 1197 3