Indiana 2024 Regular Session

Indiana House Bill HB1405 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2	Introduced Version
3	3	HOUSE BILL No. 1405
4	4	_____
5	5	DIGEST OF INTRODUCED BILL
6	6	Citations Affected: IC 7.1-1-3-45.5; IC 7.1-3-20-9.5.
7	7	Synopsis: Restaurant carryout sales. Exempts a specialty or gourmet
8	8	market issued a beer and wine retailer's permit in September 2019 from
9	9	the gross retail income requirements to sell alcoholic beverages for
10	10	carryout.
11	11	Effective: July 1, 2024.
12	12	GiaQuinta, Lehman, Miller K
13	13	January 11, 2024, read first time and referred to Committee on Public Policy.
14	14	2024 IN 1405—LS 6872/DI 87 Introduced
15	15	Second Regular Session of the 123rd General Assembly (2024)
16	16	PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
17	17	Constitution) is being amended, the text of the existing provision will appear in this style type,
18	18	additions will appear in this style type, and deletions will appear in this style type.
19	19	Additions: Whenever a new statutory provision is being enacted (or a new constitutional
20	20	provision adopted), the text of the new provision will appear in this style type. Also, the
21	21	word NEW will appear in that style type in the introductory clause of each SECTION that adds
22	22	a new provision to the Indiana Code or the Indiana Constitution.
23	23	Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
24	24	between statutes enacted by the 2023 Regular Session of the General Assembly.
25	25	HOUSE BILL No. 1405
26	26	A BILL FOR AN ACT to amend the Indiana Code concerning
27	27	alcohol and tobacco.
28	28	Be it enacted by the General Assembly of the State of Indiana:
29	29	1 SECTION 1. IC 7.1-1-3-45.5 IS ADDED TO THE INDIANA
30	30	2 CODE AS A NEW SECTION TO READ AS FOLLOWS
31	31	3 [EFFECTIVE JULY 1, 2024]: Sec. 45.5. "Specialty or gourmet
32	32	4 market" means a market that:
33	33	5 (1) holds a beer retailer's permit under IC 7.1-3-4 and wine
34	34	6 retailer's permit under IC 7.1-3-14;
35	35	7 (2) is engaged in the retail sale of miscellaneous specialty
36	36	8 foods for consumption on and off the premises, including:
37	37	9 (A) deli meat;
38	38	10 (B) fruits and vegetables;
39	39	11 (C) gourmet cheese;
40	40	12 (D) pasta and noodles;
41	41	13 (E) herbs, spices, and olive oil; and
42	42	14 (F) specialty wines; and
43	43	15 (3) is not engaged in the retail sale of automotive fuel.
44	44	16 SECTION 2. IC 7.1-3-20-9.5, AS AMENDED BY P.L.285-2019,
45	45	17 SECTION 33, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
46	46	2024 IN 1405—LS 6872/DI 87 2
47	47	1 JULY 1, 2024]: Sec. 9.5. (a) This section applies only to a retailer's
48	48	2 permit for a restaurant.
49	49	3 (b) This section does not apply to a retailer's permit that is issued or
50	50	4 transferred to the following:
51	51	5 (1) A city market under IC 7.1-3-20-25.
52	52	6 (2) A marina under IC 7.1-3-1-25.
53	53	7 (3) A state park under IC 7.1-3-17.8.
54	54	8 (4) A golf course.
55	55	9 (5) A hotel or resort hotel.
56	56	10 (6) A social or fraternal club.
57	57	11 (7) A restaurant, the proprietor of which is the holder of:
58	58	12 (A) a brewer's permit under IC 7.1-3-2-7(5);
59	59	13 (B) a farm winery permit under IC 7.1-3-12-5; or
60	60	14 (C) an artisan distiller's permit under IC 7.1-3-27-8.
61	61	15 (8) A specialty or gourmet market, the proprietor of which is
62	62	16 the holder of a beer and wine retailer's permit with carryout
63	63	17 privileges that was initially issued in September 2019.
64	64	18 (c) Except as provided in subsections (d) and (e), after May 14,
65	65	19 2017, a retailer permittee may not sell alcoholic beverages for carryout
66	66	20 unless at least sixty percent (60%) of the retailer permittee's gross retail
67	67	21 income from the sale of alcoholic beverages is derived from the sale of
68	68	22 alcoholic beverages for consumption on the licensed premises.
69	69	23 (d) This subsection applies only to a retailer's permit with carryout
70	70	24 privileges that was issued to the current permit holder before
71	71	25 November 1, 2016. Notwithstanding IC 7.1-3-1-1.5, a retailer permittee
72	72	26 may continue to sell carryout after May 14, 2017, and is not required
73	73	27 to comply with the gross retail income requirements.
74	74	28 (e) This subsection applies to a retailer's permit with carryout
75	75	29 privileges that was initially:
76	76	30 (1) issued; or
77	77	31 (2) transferred to the premises location;
78	78	32 after October 31, 2016, and before May 15, 2017. Notwithstanding
79	79	33 IC 7.1-3-1-1.5, a retailer permittee may continue to sell carryout after
80	80	34 May 14, 2017, and is not required to comply with the gross retail
81	81	35 income requirements until the retailer's permit is renewed. A retailer
82	82	36 permittee may be issued a letter of extension, and subsequent renewals
83	83	37 of the extension under IC 7.1-3-1-3.1 but the permit term may not be
84	84	38 extended past April 1, 2018. A retailer permittee may continue to sell
85	85	39 carryout while the extension is in effect. If the permit is transferred as
86	86	40 to ownership or to a location that is not exempt under subsection (b),
87	87	41 the gross retail income requirements of this section apply upon transfer
88	88	42 of the permit.
89	89	2024 IN 1405—LS 6872/DI 87 3
90	90	1 (f) Except for a retailer permittee described in subsection (d), a
91	91	2 retailer permittee that has carryout privileges must apply for renewal
92	92	3 of the carryout privileges when applying for renewal of the retailer's
93	93	4 permit. The retailer permittee must provide the commission with a
94	94	5 financial statement with information that shows the dollar amounts and
95	95	6 percentages of the retailer permittee's gross retail income that is
96	96	7 derived from sales of alcoholic beverages:
97	97	8 (1) for consumption on the licensed premises; and
98	98	9 (2) for carryout;
99	99	10 during the one hundred eighty (180) days preceding the date of the
100	100	11 application for renewal.
101	101	12 (g) For subsequent applications for renewal, the commission may
102	102	13 allow a retailer permittee to submit to the commission an affidavit of
103	103	14 compliance that is signed by the permittee, or by a responsible officer
104	104	15 or partner, under the penalties of perjury, that states that the
105	105	16 requirements of subsection (c) continue to be met. If the commission
106	106	17 has reasonable grounds to doubt the truthfulness of an affidavit of
107	107	18 compliance, the commission may require the retailer permittee to
108	108	19 provide audited financial statements.
109	109	20 (h) If an applicant for renewal of carryout privileges does not meet
110	110	21 the requirements of subsection (c) and the commission denies the
111	111	22 application, the applicant may apply for a reinstatement of carryout
112	112	23 privileges with the permittee's next application for renewal of the
113	113	24 retailer's permit that is made in accordance with subsection (i).
114	114	25 (i) An applicant:
115	115	26 (1) for a retailer's permit and carryout privileges that has not
116	116	27 opened for business; or
117	117	28 (2) for carryout privileges that:
118	118	29 (A) is the holder of a retailer's permit for an operating
119	119	30 business; and
120	120	31 (B) has had the previous application for carryout privileges or
121	121	32 renewal of carryout privileges denied by the commission;
122	122	33 must provide the commission with a verified certification stating that
123	123	34 the projected gross retail income from alcoholic beverage sales during
124	124	35 the business's first two (2) years of operations with carryout privileges
125	125	36 will meet the requirements of subsection (c). Not more than one
126	126	37 hundred eighty (180) days after the date the applicant begins or
127	127	38 resumes alcoholic beverage sales with carryout privileges, the applicant
128	128	39 shall provide a financial statement with sufficient information to show
129	129	40 that during the first one hundred twenty (120) days of business
130	130	41 operations with carryout privileges, sixty percent (60%) of the gross
131	131	42 retail income from all alcoholic beverage sales was derived from sales
132	132	2024 IN 1405—LS 6872/DI 87 4
133	133	1 of alcoholic beverages for consumption on the premises.
134	134	2 (j) The commission may:
135	135	3 (1) require that a financial statement submitted by an applicant
136	136	4 under this chapter be audited by a certified public accountant; and
137	137	5 (2) with the cooperation of the department of state revenue, verify
138	138	6 the information provided by the applicant.
139	139	7 (k) The information provided to the commission under this chapter
140	140	8 regarding gross retail income is confidential information and may not
141	141	9 be disclosed to the public under IC 5-14-3. However, the commission
142	142	10 may disclose the information:
143	143	11 (1) to the department of state revenue to verify the accuracy of the
144	144	12 amount of gross retail income from sales of alcoholic beverages;
145	145	13 and
146	146	14 (2) in any administrative or judicial proceeding to revoke or
147	147	15 suspend the holder's permit as a result of a discrepancy in the
148	148	16 amount of gross retail income from sales of alcoholic beverages
149	149	17 discovered by the department of state revenue.
150	150	18 (l) Notwithstanding IC 6-8.1-7-1 or any other law, in fulfilling its
151	151	19 obligations under this section, the department of state revenue may
152	152	20 provide confidential information to the commission. The commission
153	153	21 shall maintain the confidentiality of information provided by the
154	154	22 department of state revenue under this chapter. However, the
155	155	23 commission may disclose the information in any administrative or
156	156	24 judicial proceeding to revoke or suspend the holder's permit as a result
157	157	25 of any information provided by the department of state revenue.
158	158	26 (m) If the commission does not grant or renew a retailer permittee's
159	159	27 carryout privileges, the denial shall not affect the other rights,
160	160	28 privileges, and restrictions of the retailer's permit, including the retailer
161	161	29 permittee's ability to sell alcoholic beverages for on-premises
162	162	30 consumption.
163	163	2024 IN 1405—LS 6872/DI 87