Introduced Version
SENATE BILL No. 149
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 7.1-3-18.5; IC 7.1-5; IC 35-46-1-11.4;
IC 35-52-7-37.5.
Synopsis: Tobacco sales. Provides that a tobacco sales certificate
(certificate) applied for after June 30, 2024: (1) has an application fee
of not more than $100; and (2) is valid for a term of one year. Prohibits
the alcohol and tobacco commission from issuing a certificate to
certain persons. Provides that, if a majority interest in a business that
holds a certificate is sold or transferred: (1) the new ownership must
apply for a new certificate; and (2) the certificate and permit number
held by the previous ownership are void as of the date of the sale or
transfer of the interest in the business. Requires an employee of a
certificate holder to: (1) hold a valid Indiana driver's license or
identification card to sell tobacco products; and (2) have the employee's
driver's license or identification card in the employee's possession when
selling tobacco products. Provides that a minor who knowingly or
intentionally falsely represents the minor's age for the purpose of
purchasing or attempting to purchase a tobacco product commits a
Class C misdemeanor. Provides that a person who recklessly,
knowingly, or intentionally sells a tobacco product without a valid
certificate commits a Class C infraction. Provides that the tobacco sales
certificate of a tobacco and vaping business that illegally operates
within 1,000 feet of an elementary or secondary school is permanently
revoked.
Effective: July 1, 2024.
Rogers
January 9, 2024, read first time and referred to Committee on Corrections and Criminal
Law.
2024 IN 149—LS 6715/DI 137 Introduced
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.
SENATE BILL No. 149
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 7.1-3-18.5-2, AS AMENDED BY P.L.49-2020,
2 SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3 JULY 1, 2024]: Sec. 2. (a) A person who desires a certificate must
4 provide the following to the commission:
5 (1) The applicant's name and mailing address and the address of
6 the premises for which the certificate is being issued.
7 (2) Except as provided in section 6(c) of this chapter, the
8 following application fees:
9 (A) For an application submitted on or before June 30,
10 2024, a fee of two hundred dollars ($200).
11 (B) For an application submitted after June 30, 2024, a fee
12 of not more than one hundred dollars ($100).
13 (3) The name under which the applicant transacts or intends to
14 transact business.
15 (4) The address of the applicant's principal place of business or
16 headquarters, if any.
17 (5) The statement required under section 2.6 of this chapter.
2024 IN 149—LS 6715/DI 137 2
1 (6) If the applicant is applying for a new certificate under
2 section 3.2 of this chapter, a copy of each of the following:
3 (A) If the new ownership of the business is a business
4 entity, the articles of incorporation, articles of
5 organization, or any other formation documents of the
6 business entity.
7 (B) If the new ownership of the business is an individual,
8 the sales or purchase agreement.
9 (C) The certificate held by the previous ownership of the
10 business.
11 (b) A separate certificate is required for each location where the
12 tobacco products or electronic cigarettes are sold or distributed. A
13 retail establishment may not hold more than one (1) active tobacco
14 sales certificate at any time.
15 (c) A certificate holder shall conspicuously display the holder's
16 certificate on the holder's premises where the tobacco products or
17 electronic cigarettes are sold or distributed.
18 (d) Any intentional misstatement or suppression of a material fact
19 in an application filed under this section constitutes grounds for denial
20 of the certificate.
21 (e) A certificate may be issued only to a person who meets the
22 following requirements:
23 (1) If the person is an individual, the person must be at least
24 twenty-one (21) years of age.
25 (2) The person must be authorized to do business in Indiana.
26 (3) The person has not had an interest in a certificate revoked by
27 the commission for that business location within the preceding
28 one (1) year.
29 (f) The fees collected under this section shall be deposited in the
30 enforcement and administration fund under IC 7.1-4-10.
31 SECTION 2. IC 7.1-3-18.5-2.4 IS ADDED TO THE INDIANA
32 CODE AS A NEW SECTION TO READ AS FOLLOWS
33 [EFFECTIVE JULY 1, 2024]: Sec. 2.4. (a) The commission shall not
34 issue a tobacco sales certificate, except as otherwise authorized in
35 this title and subject to the other restrictions contained in this title,
36 to the following persons:
37 (1) An alien.
38 (2) A person who is not of good repute in the community in
39 which the person resides.
40 (3) A person who has been convicted within ten (10) years
41 before the date of application of:
42 (A) a federal crime having a sentence of at least one (1)
2024 IN 149—LS 6715/DI 137 3
1 year;
2 (B) a Level 1, Level 2, Level 3, Level 4, or Level 5 felony;
3 or
4 (C) a crime in a state other than Indiana having a penalty
5 equal to the penalty for an Indiana Level 1, Level 2, Level
6 3, Level 4, or Level 5 felony.
7 However, this subdivision does not apply to a conviction that
8 has been expunged under IC 35-38-9.
9 (4) A person who does not own the premises to which the
10 certificate will be applicable, or who does not have a bona fide
11 lease on the premises for the full period for which the
12 certificate is to be issued.
13 (5) A law enforcement officer or an officer who is not an
14 elected officer of a municipal corporation, or governmental
15 subdivision, or of Indiana, charged with any duty or function
16 in the enforcement of this title.
17 (6) An officer or employee of a person engaged in the tobacco
18 traffic, which person is a nonresident of Indiana, or is
19 engaged in carrying on any phase of the manufacture of,
20 traffic in, or transportation of tobacco without a permit or
21 certificate under this title when a permit or certificate is
22 required by this title.
23 (7) A person whose place of business is conducted by a
24 manager or agent, unless the manager or agent possesses the
25 same qualifications required for the issuance of a tobacco
26 sales certificate to the person.
27 (8) A minor.
28 (9) A person non compos mentis.
29 (10) A person who has held a permit or certificate under this
30 title and who has had that permit or certificate revoked
31 within one (1) year prior to the date of application for a
32 tobacco sales certificate.
33 (11) A person who has made an application for a permit or
34 certificate of any type under this title which has been denied
35 less than one (1) year prior to the person's application for a
36 tobacco sales certificate unless the first application was denied
37 by reason of a procedural or technical defect.
38 (b) Subsection (a)(8) does not prevent a minor from being a
39 stockholder in a corporation.
40 SECTION 3. IC 7.1-3-18.5-3, AS AMENDED BY P.L.224-2005,
41 SECTION 11, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
42 JULY 1, 2024]: Sec. 3. (a) A certificate issued by the commission
2024 IN 149—LS 6715/DI 137 4
1 under this chapter must contain the following information:
2 (1) The certificate number.
3 (2) The certificate holder's name.
4 (3) The permanent location of the business or vending machine
5 for which the certificate is issued.
6 (4) The expiration date of the certificate.
7 (b) A certificate that is applied for on or before June 30, 2024, is:
8 (1) valid for three (3) years after the date of issuance, unless the
9 commission suspends the certificate; and
10 (2) nontransferable.
11 (c) A certificate that is applied for after June 30, 2024, is:
12 (1) valid for one (1) year after the date of issuance, unless the
13 commission suspends the certificate; and
14 (2) nontransferable.
15 SECTION 4. IC 7.1-3-18.5-3.2 IS ADDED TO THE INDIANA
16 CODE AS A NEW SECTION TO READ AS FOLLOWS
17 [EFFECTIVE JULY 1, 2024]: Sec. 3.2. If the majority of the
18 ownership of a business that is a certificate holder is sold or
19 transferred:
20 (1) the new ownership of the business must apply for a new
21 certificate under section 2 of this chapter; and
22 (2) the certificate and the permit number held by the previous
23 ownership of the business are void as of the date of the sale or
24 transfer of the ownership of the business.
25 SECTION 5. IC 7.1-3-18.5-9.2 IS ADDED TO THE INDIANA
26 CODE AS A NEW SECTION TO READ AS FOLLOWS
27 [EFFECTIVE JULY 1, 2024]: Sec. 9.2. (a) An employee of a
28 certificate holder must hold a valid:
29 (1) driver's license issued under IC 9-24-3; or
30 (2) identification card issued under IC 9-24-16;
31 to sell tobacco products.
32 (b) An employee must have the employee's driver's license or
33 identification card:
34 (1) in the employee's possession; and
35 (2) upon request, readily available to show to an excise officer
36 or law enforcement;
37 when selling tobacco products.
38 SECTION 6. IC 7.1-5-7-1, AS AMENDED BY P.L.159-2014,
39 SECTION 47, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
40 JULY 1, 2024]: Sec. 1. It is a Class C misdemeanor for a minor to
41 knowingly or intentionally make a false statement of the minor's age or
42 to present or offer false or fraudulent evidence of majority or identity
2024 IN 149—LS 6715/DI 137 5
1 to a permittee for the purpose of ordering, purchasing, attempting to
2 purchase, or otherwise procuring or attempting to procure an alcoholic
3 beverage or tobacco product.
4 SECTION 7. IC 7.1-5-10-26 IS ADDED TO THE INDIANA CODE
5 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
6 1, 2024]: Sec. 26. A person who recklessly, knowingly, or
7 intentionally sells a tobacco product without a valid tobacco sales
8 certificate commits a Class C infraction.
9 SECTION 8. IC 35-46-1-11.4, AS ADDED BY P.L.49-2020,
10 SECTION 35, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
11 JULY 1, 2024]: Sec. 11.4. (a) This section does not apply to a tobacco
12 and vaping business:
13 (1) operating as a tobacco and vaping business before July 1,
14 2020; or
15 (2) that began operating as a tobacco and vaping business after
16 June 30, 2020, if at the time the tobacco and vaping business
17 began operating the tobacco and vaping business was not located
18 in an area prohibited under this section.
19 (b) A person may not operate a tobacco and vaping business within
20 one thousand (1,000) feet of a public or private elementary or
21 secondary school, as measured between the nearest point of the
22 premises occupied by the tobacco and vaping business and the nearest
23 point of a building used by the school for instructional purposes.
24 (c) A person who violates this section commits a Class C
25 misdemeanor and, if the person holds a tobacco sales certificate, the
26 certificate is permanently revoked.
27 SECTION 9. IC 35-52-7-37.5, AS ADDED BY P.L.169-2014,
28 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
29 JULY 1, 2024]: Sec. 37.5. IC 7.1-5-7-1 defines a crime concerning
30 alcohol and tobacco.
2024 IN 149—LS 6715/DI 137