Indiana 2024 Regular Session

Indiana Senate Bill SB0058 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
	1	+	ES0058.1
	2	+	February 13, 2024
	3	+	ENGROSSED
	4	+	SENATE BILL No. 58
	5	+	_____
	6	+	DIGEST OF SB 58 (Updated February 13, 2024 11:17 am - DI 144)
	7	+	Citations Affected: IC 7.1-1; IC 7.1-3.
	8	+	Synopsis: Restaurant carryout sales. Exempts a specialty or gourmet
	9	+	market holding a retailer's permit with carryout privileges that was
	10	+	initially issued in September 2019 from the gross retail income
	11	+	requirements to sell alcoholic beverages for carryout.
	12	+	Effective: July 1, 2024.
	13	+	Holdman, Messmer, Alting,
	14	+	Randolph Lonnie M
	15	+	(HOUSE SPONSORS — GIAQUINTA, MANNING, MILLER K)
	16	+	January 8, 2024, read first time and referred to Committee on Public Policy.
	17	+	January 18, 2024, amended, reported favorably — Do Pass; reassigned to Committee on
	18	+	Tax and Fiscal Policy.
	19	+	January 23, 2024, reported favorably — Do Pass.
	20	+	January 25, 2024, read second time, ordered engrossed.
	21	+	January 26, 2024, engrossed.
	22	+	January 29, 2024, read third time, passed. Yeas 42, nays 7.
	23	+	HOUSE ACTION
	24	+	February 6, 2024, read first time and referred to Committee on Public Policy.
	25	+	February 13, 2024, amended, reported — Do Pass.
	26	+	ES 58—LS 6425/DI 87 February 13, 2024
1	27		Second Regular Session of the 123rd General Assembly (2024)
2	28		PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
3	29		Constitution) is being amended, the text of the existing provision will appear in this style type,
4	30		additions will appear in this style type, and deletions will appear in this style type.
5	31		Additions: Whenever a new statutory provision is being enacted (or a new constitutional
6	32		provision adopted), the text of the new provision will appear in this style type. Also, the
7	33		word NEW will appear in that style type in the introductory clause of each SECTION that adds
8	34		a new provision to the Indiana Code or the Indiana Constitution.
9	35		Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
10	36		between statutes enacted by the 2023 Regular Session of the General Assembly.
11		-	SENATE ENROLLED ACT No. 58
12		-	AN ACT to amend the Indiana Code concerning alcohol and
13		-	tobacco.
	37	+	ENGROSSED
	38	+	SENATE BILL No. 58
	39	+	A BILL FOR AN ACT to amend the Indiana Code concerning
	40	+	alcohol and tobacco.
14	41		Be it enacted by the General Assembly of the State of Indiana:
15		-	SECTION 1. IC 7.1-1-3-45.5 IS ADDED TO THE INDIANA
	42	+	1 SECTION 1. IC 7.1-1-3-45.5 IS ADDED TO THE INDIANA
	43	+	2 CODE AS A NEW SECTION TO READ AS FOLLOWS
	44	+	3 [EFFECTIVE JULY 1, 2024]: Sec. 45.5. "Specialty or gourmet
	45	+	4 market" means a market that:
	46	+	5 (1) holds a beer retailer's permit under IC 7.1-3-4 and wine
	47	+	6 retailer's permit under IC 7.1-3-14;
	48	+	7 (2) is engaged in the retail sale of miscellaneous specialty
	49	+	8 foods for consumption on and off the premises, including:
	50	+	9 (A) deli meat;
	51	+	10 (B) fruits and vegetables;
	52	+	11 (C) gourmet cheese;
	53	+	12 (D) pasta and noodles;
	54	+	13 (E) herbs, spices, and olive oil; and
	55	+	14 (F) specialty wines; and
	56	+	15 (3) is not engaged in the retail sale of automotive fuel.
	57	+	16 SECTION 2. IC 7.1-3-20-9.5, AS AMENDED BY P.L.285-2019,
	58	+	17 SECTION 33, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	59	+	ES 58—LS 6425/DI 87 2
	60	+	1 JULY 1, 2024]: Sec. 9.5. (a) This section applies only to a retailer's
	61	+	2 permit for a restaurant.
	62	+	3 (b) This section does not apply to a retailer's permit that is issued or
	63	+	4 transferred to the following:
	64	+	5 (1) A city market under IC 7.1-3-20-25.
	65	+	6 (2) A marina under IC 7.1-3-1-25.
	66	+	7 (3) A state park under IC 7.1-3-17.8.
	67	+	8 (4) A golf course.
	68	+	9 (5) A hotel or resort hotel.
	69	+	10 (6) A social or fraternal club.
	70	+	11 (7) A restaurant, the proprietor of which is the holder of:
	71	+	12 (A) a brewer's permit under IC 7.1-3-2-7(5);
	72	+	13 (B) a farm winery permit under IC 7.1-3-12-5; or
	73	+	14 (C) an artisan distiller's permit under IC 7.1-3-27-8.
	74	+	15 (8) A specialty or gourmet market (as defined in
	75	+	16 IC 7.1-1-3-45.5). This exception applies only to a retailer's
	76	+	17 permit with carryout privileges that was initially issued in
	77	+	18 September 2019.
	78	+	19 (c) Except as provided in subsections (d) and (e), after May 14,
	79	+	20 2017, a retailer permittee may not sell alcoholic beverages for carryout
	80	+	21 unless at least sixty percent (60%) of the retailer permittee's gross retail
	81	+	22 income from the sale of alcoholic beverages is derived from the sale of
	82	+	23 alcoholic beverages for consumption on the licensed premises.
	83	+	24 (d) This subsection applies only to a retailer's permit with carryout
	84	+	25 privileges that was issued to the current permit holder before
	85	+	26 November 1, 2016. Notwithstanding IC 7.1-3-1-1.5, a retailer permittee
	86	+	27 may continue to sell carryout after May 14, 2017, and is not required
	87	+	28 to comply with the gross retail income requirements.
	88	+	29 (e) This subsection applies to a retailer's permit with carryout
	89	+	30 privileges that was initially:
	90	+	31 (1) issued; or
	91	+	32 (2) transferred to the premises location;
	92	+	33 after October 31, 2016, and before May 15, 2017. Notwithstanding
	93	+	34 IC 7.1-3-1-1.5, a retailer permittee may continue to sell carryout after
	94	+	35 May 14, 2017, and is not required to comply with the gross retail
	95	+	36 income requirements until the retailer's permit is renewed. A retailer
	96	+	37 permittee may be issued a letter of extension, and subsequent renewals
	97	+	38 of the extension under IC 7.1-3-1-3.1 but the permit term may not be
	98	+	39 extended past April 1, 2018. A retailer permittee may continue to sell
	99	+	40 carryout while the extension is in effect. If the permit is transferred as
	100	+	41 to ownership or to a location that is not exempt under subsection (b),
	101	+	42 the gross retail income requirements of this section apply upon transfer
	102	+	ES 58—LS 6425/DI 87 3
	103	+	1 of the permit.
	104	+	2 (f) Except for a retailer permittee described in subsection (d), a
	105	+	3 retailer permittee that has carryout privileges must apply for renewal
	106	+	4 of the carryout privileges when applying for renewal of the retailer's
	107	+	5 permit. The retailer permittee must provide the commission with a
	108	+	6 financial statement with information that shows the dollar amounts and
	109	+	7 percentages of the retailer permittee's gross retail income that is
	110	+	8 derived from sales of alcoholic beverages:
	111	+	9 (1) for consumption on the licensed premises; and
	112	+	10 (2) for carryout;
	113	+	11 during the one hundred eighty (180) days preceding the date of the
	114	+	12 application for renewal.
	115	+	13 (g) For subsequent applications for renewal, the commission may
	116	+	14 allow a retailer permittee to submit to the commission an affidavit of
	117	+	15 compliance that is signed by the permittee, or by a responsible officer
	118	+	16 or partner, under the penalties of perjury, that states that the
	119	+	17 requirements of subsection (c) continue to be met. If the commission
	120	+	18 has reasonable grounds to doubt the truthfulness of an affidavit of
	121	+	19 compliance, the commission may require the retailer permittee to
	122	+	20 provide audited financial statements.
	123	+	21 (h) If an applicant for renewal of carryout privileges does not meet
	124	+	22 the requirements of subsection (c) and the commission denies the
	125	+	23 application, the applicant may apply for a reinstatement of carryout
	126	+	24 privileges with the permittee's next application for renewal of the
	127	+	25 retailer's permit that is made in accordance with subsection (i).
	128	+	26 (i) An applicant:
	129	+	27 (1) for a retailer's permit and carryout privileges that has not
	130	+	28 opened for business; or
	131	+	29 (2) for carryout privileges that:
	132	+	30 (A) is the holder of a retailer's permit for an operating
	133	+	31 business; and
	134	+	32 (B) has had the previous application for carryout privileges or
	135	+	33 renewal of carryout privileges denied by the commission;
	136	+	34 must provide the commission with a verified certification stating that
	137	+	35 the projected gross retail income from alcoholic beverage sales during
	138	+	36 the business's first two (2) years of operations with carryout privileges
	139	+	37 will meet the requirements of subsection (c). Not more than one
	140	+	38 hundred eighty (180) days after the date the applicant begins or
	141	+	39 resumes alcoholic beverage sales with carryout privileges, the applicant
	142	+	40 shall provide a financial statement with sufficient information to show
	143	+	41 that during the first one hundred twenty (120) days of business
	144	+	42 operations with carryout privileges, sixty percent (60%) of the gross
	145	+	ES 58—LS 6425/DI 87 4
	146	+	1 retail income from all alcoholic beverage sales was derived from sales
	147	+	2 of alcoholic beverages for consumption on the premises.
	148	+	3 (j) The commission may:
	149	+	4 (1) require that a financial statement submitted by an applicant
	150	+	5 under this chapter be audited by a certified public accountant; and
	151	+	6 (2) with the cooperation of the department of state revenue, verify
	152	+	7 the information provided by the applicant.
	153	+	8 (k) The information provided to the commission under this chapter
	154	+	9 regarding gross retail income is confidential information and may not
	155	+	10 be disclosed to the public under IC 5-14-3. However, the commission
	156	+	11 may disclose the information:
	157	+	12 (1) to the department of state revenue to verify the accuracy of the
	158	+	13 amount of gross retail income from sales of alcoholic beverages;
	159	+	14 and
	160	+	15 (2) in any administrative or judicial proceeding to revoke or
	161	+	16 suspend the holder's permit as a result of a discrepancy in the
	162	+	17 amount of gross retail income from sales of alcoholic beverages
	163	+	18 discovered by the department of state revenue.
	164	+	19 (l) Notwithstanding IC 6-8.1-7-1 or any other law, in fulfilling its
	165	+	20 obligations under this section, the department of state revenue may
	166	+	21 provide confidential information to the commission. The commission
	167	+	22 shall maintain the confidentiality of information provided by the
	168	+	23 department of state revenue under this chapter. However, the
	169	+	24 commission may disclose the information in any administrative or
	170	+	25 judicial proceeding to revoke or suspend the holder's permit as a result
	171	+	26 of any information provided by the department of state revenue.
	172	+	27 (m) If the commission does not grant or renew a retailer permittee's
	173	+	28 carryout privileges, the denial shall not affect the other rights,
	174	+	29 privileges, and restrictions of the retailer's permit, including the retailer
	175	+	30 permittee's ability to sell alcoholic beverages for on-premises
	176	+	31 consumption.
	177	+	ES 58—LS 6425/DI 87 5
	178	+	COMMITTEE REPORT
	179	+	Madam President: The Senate Committee on Public Policy, to which
	180	+	was referred Senate Bill No. 58, has had the same under consideration
	181	+	and begs leave to report the same back to the Senate with the
	182	+	recommendation that said bill be AMENDED as follows:
	183	+	Page 1, delete lines 1 through 13, begin a new paragraph and insert:
	184	+	"SECTION 1. IC 7.1-1-3-45.5 IS ADDED TO THE INDIANA
16	185		CODE AS A NEW SECTION TO READ AS FOLLOWS
17	186		[EFFECTIVE JULY 1, 2024]: Sec. 45.5. "Specialty or gourmet
18	187		market" means a market that:
19	188		(1) holds a beer retailer's permit under IC 7.1-3-4 and wine
20	189		retailer's permit under IC 7.1-3-14;
21	190		(2) is engaged in the retail sale of miscellaneous specialty
22	191		foods for consumption on and off the premises, including:
23	192		(A) deli meat;
24	193		(B) fruits and vegetables;
25	194		(C) gourmet cheese;
26	195		(D) pasta and noodles;
27	196		(E) herbs, spices, and olive oil; and
28	197		(F) specialty wines; and
29		-	(3) is not engaged in the retail sale of automotive fuel.
30		-	SECTION 2. IC 7.1-3-20-9.5, AS AMENDED BY P.L.285-2019,
31		-	SECTION 33, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
32		-	JULY 1, 2024]: Sec. 9.5. (a) This section applies only to a retailer's
33		-	permit for a restaurant.
34		-	(b) This section does not apply to a retailer's permit that is issued or
35		-	transferred to the following:
36		-	SEA 58 — Concur 2
37		-	(1) A city market under IC 7.1-3-20-25.
38		-	(2) A marina under IC 7.1-3-1-25.
39		-	(3) A state park under IC 7.1-3-17.8.
40		-	(4) A golf course.
41		-	(5) A hotel or resort hotel.
42		-	(6) A social or fraternal club.
43		-	(7) A restaurant, the proprietor of which is the holder of:
44		-	(A) a brewer's permit under IC 7.1-3-2-7(5);
45		-	(B) a farm winery permit under IC 7.1-3-12-5; or
46		-	(C) an artisan distiller's permit under IC 7.1-3-27-8.
47		-	(8) A specialty or gourmet market (as defined in
48		-	IC 7.1-1-3-45.5). This exception applies only to a retailer's
49		-	permit with carryout privileges that was initially issued in
50		-	September 2019.
51		-	(c) Except as provided in subsections (d) and (e), after May 14,
52		-	2017, a retailer permittee may not sell alcoholic beverages for carryout
53		-	unless at least sixty percent (60%) of the retailer permittee's gross retail
54		-	income from the sale of alcoholic beverages is derived from the sale of
55		-	alcoholic beverages for consumption on the licensed premises.
56		-	(d) This subsection applies only to a retailer's permit with carryout
57		-	privileges that was issued to the current permit holder before
58		-	November 1, 2016. Notwithstanding IC 7.1-3-1-1.5, a retailer permittee
59		-	may continue to sell carryout after May 14, 2017, and is not required
60		-	to comply with the gross retail income requirements.
61		-	(e) This subsection applies to a retailer's permit with carryout
62		-	privileges that was initially:
63		-	(1) issued; or
64		-	(2) transferred to the premises location;
65		-	after October 31, 2016, and before May 15, 2017. Notwithstanding
66		-	IC 7.1-3-1-1.5, a retailer permittee may continue to sell carryout after
67		-	May 14, 2017, and is not required to comply with the gross retail
68		-	income requirements until the retailer's permit is renewed. A retailer
69		-	permittee may be issued a letter of extension, and subsequent renewals
70		-	of the extension under IC 7.1-3-1-3.1 but the permit term may not be
71		-	extended past April 1, 2018. A retailer permittee may continue to sell
72		-	carryout while the extension is in effect. If the permit is transferred as
73		-	to ownership or to a location that is not exempt under subsection (b),
74		-	the gross retail income requirements of this section apply upon transfer
75		-	of the permit.
76		-	(f) Except for a retailer permittee described in subsection (d), a
77		-	retailer permittee that has carryout privileges must apply for renewal
78		-	of the carryout privileges when applying for renewal of the retailer's
79		-	SEA 58 — Concur 3
80		-	permit. The retailer permittee must provide the commission with a
81		-	financial statement with information that shows the dollar amounts and
82		-	percentages of the retailer permittee's gross retail income that is
83		-	derived from sales of alcoholic beverages:
84		-	(1) for consumption on the licensed premises; and
85		-	(2) for carryout;
86		-	during the one hundred eighty (180) days preceding the date of the
87		-	application for renewal.
88		-	(g) For subsequent applications for renewal, the commission may
89		-	allow a retailer permittee to submit to the commission an affidavit of
90		-	compliance that is signed by the permittee, or by a responsible officer
91		-	or partner, under the penalties of perjury, that states that the
92		-	requirements of subsection (c) continue to be met. If the commission
93		-	has reasonable grounds to doubt the truthfulness of an affidavit of
94		-	compliance, the commission may require the retailer permittee to
95		-	provide audited financial statements.
96		-	(h) If an applicant for renewal of carryout privileges does not meet
97		-	the requirements of subsection (c) and the commission denies the
98		-	application, the applicant may apply for a reinstatement of carryout
99		-	privileges with the permittee's next application for renewal of the
100		-	retailer's permit that is made in accordance with subsection (i).
101		-	(i) An applicant:
102		-	(1) for a retailer's permit and carryout privileges that has not
103		-	opened for business; or
104		-	(2) for carryout privileges that:
105		-	(A) is the holder of a retailer's permit for an operating
106		-	business; and
107		-	(B) has had the previous application for carryout privileges or
108		-	renewal of carryout privileges denied by the commission;
109		-	must provide the commission with a verified certification stating that
110		-	the projected gross retail income from alcoholic beverage sales during
111		-	the business's first two (2) years of operations with carryout privileges
112		-	will meet the requirements of subsection (c). Not more than one
113		-	hundred eighty (180) days after the date the applicant begins or
114		-	resumes alcoholic beverage sales with carryout privileges, the applicant
115		-	shall provide a financial statement with sufficient information to show
116		-	that during the first one hundred twenty (120) days of business
117		-	operations with carryout privileges, sixty percent (60%) of the gross
118		-	retail income from all alcoholic beverage sales was derived from sales
119		-	of alcoholic beverages for consumption on the premises.
120		-	(j) The commission may:
121		-	(1) require that a financial statement submitted by an applicant
122		-	SEA 58 — Concur 4
123		-	under this chapter be audited by a certified public accountant; and
124		-	(2) with the cooperation of the department of state revenue, verify
125		-	the information provided by the applicant.
126		-	(k) The information provided to the commission under this chapter
127		-	regarding gross retail income is confidential information and may not
128		-	be disclosed to the public under IC 5-14-3. However, the commission
129		-	may disclose the information:
130		-	(1) to the department of state revenue to verify the accuracy of the
131		-	amount of gross retail income from sales of alcoholic beverages;
132		-	and
133		-	(2) in any administrative or judicial proceeding to revoke or
134		-	suspend the holder's permit as a result of a discrepancy in the
135		-	amount of gross retail income from sales of alcoholic beverages
136		-	discovered by the department of state revenue.
137		-	(l) Notwithstanding IC 6-8.1-7-1 or any other law, in fulfilling its
138		-	obligations under this section, the department of state revenue may
139		-	provide confidential information to the commission. The commission
140		-	shall maintain the confidentiality of information provided by the
141		-	department of state revenue under this chapter. However, the
142		-	commission may disclose the information in any administrative or
143		-	judicial proceeding to revoke or suspend the holder's permit as a result
144		-	of any information provided by the department of state revenue.
145		-	(m) If the commission does not grant or renew a retailer permittee's
146		-	carryout privileges, the denial shall not affect the other rights,
147		-	privileges, and restrictions of the retailer's permit, including the retailer
148		-	permittee's ability to sell alcoholic beverages for on-premises
149		-	consumption.
150		-	SEA 58 — Concur President of the Senate
151		-	President Pro Tempore
152		-	Speaker of the House of Representatives
153		-	Governor of the State of Indiana
154		-	Date: Time:
155		-	SEA 58 — Concur
	198	+	(3) is not engaged in the retail sale of automotive fuel.".
	199	+	Page 2, line 13, delete "market." and insert "market (as defined in
	200	+	IC 7.1-1-3-45.5). This exception applies only to a retailer's permit
	201	+	with carryout privileges that was originally issued on or before
	202	+	January 1, 2024.".
	203	+	and when so amended that said bill do pass and be reassigned to the
	204	+	Senate Committee on Tax and Fiscal Policy.
	205	+	(Reference is to SB 58 as introduced.)
	206	+	ALTING, Chairperson
	207	+	Committee Vote: Yeas 8, Nays 0.
	208	+	_____
	209	+	COMMITTEE REPORT
	210	+	Madam President: The Senate Committee on Tax and Fiscal Policy,
	211	+	to which was referred Senate Bill No. 58, has had the same under
	212	+	consideration and begs leave to report the same back to the Senate with
	213	+	the recommendation that said bill DO PASS.
	214	+	ES 58—LS 6425/DI 87 6
	215	+	(Reference is to SB 58 as printed January 19, 2024.)
	216	+
	217	+	HOLDMAN, Chairperson
	218	+	Committee Vote: Yeas 13, Nays 0
	219	+	_____
	220	+	COMMITTEE REPORT
	221	+	Mr. Speaker: Your Committee on Public Policy, to which was
	222	+	referred Senate Bill 58, has had the same under consideration and begs
	223	+	leave to report the same back to the House with the recommendation
	224	+	that said bill be amended as follows:
	225	+	Page 2, line 17, delete "originally issued on" and insert "initially
	226	+	issued in September 2019.".
	227	+	Page 2, delete line 18.
	228	+	and when so amended that said bill do pass.
	229	+	(Reference is to SB 58 as printed January 24, 2024.)
	230	+	MANNING
	231	+	Committee Vote: yeas 12, nays 0.
	232	+	ES 58—LS 6425/DI 87