*SB0149.1*
January 31, 2024
SENATE BILL No. 149
_____
DIGEST OF SB 149 (Updated January 30, 2024 10:14 am - DI 106)
Citations Affected: IC 7.1-3; IC 7.1-5; IC 35-46.
Synopsis: Tobacco. Prohibits the alcohol and tobacco commission
from issuing a tobacco certificate (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
hold a valid driver's license or identification card to sell tobacco
products. Provides that a minor who falsely represents the minor's age
for the purpose of purchasing a tobacco product is subject to a civil
penalty and must attend a smoking cessation class. 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 school property is
permanently revoked.
Effective: July 1, 2024.
Rogers, Freeman, Donato, Alexander
January 9, 2024, read first time and referred to Committee on Corrections and Criminal
Law.
January 30, 2024, amended, reported favorably — Do Pass.
SB 149—LS 6715/DI 137 January 31, 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.
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, a fee of two
8 hundred dollars ($200).
9 (3) The name under which the applicant transacts or intends to
10 transact business.
11 (4) The address of the applicant's principal place of business or
12 headquarters, if any.
13 (5) The statement required under section 2.6 of this chapter.
14 (6) If the applicant is applying for a new certificate under
15 section 3.2 of this chapter, a copy of each of the following:
16 (A) If the new ownership of the business is a business
17 entity, the articles of incorporation, articles of
SB 149—LS 6715/DI 137 2
1 organization, or any other formation documents of the
2 business entity.
3 (B) If the new ownership of the business is an individual,
4 the sales or purchase agreement.
5 (C) The certificate held by the previous ownership of the
6 business.
7 (b) A separate certificate is required for each location where the
8 tobacco products or electronic cigarettes are sold or distributed. A
9 retail establishment may not hold more than one (1) active tobacco
10 sales certificate at any time.
11 (c) A certificate holder shall conspicuously display the holder's
12 certificate on the holder's premises where the tobacco products or
13 electronic cigarettes are sold or distributed.
14 (d) Any intentional misstatement or suppression of a material fact
15 in an application filed under this section constitutes grounds for denial
16 of the certificate.
17 (e) A certificate may be issued only to a person who meets the
18 following requirements:
19 (1) If the person is an individual, the person must be at least
20 twenty-one (21) years of age.
21 (2) The person must be authorized to do business in Indiana.
22 (3) The person has not had an interest in a certificate revoked by
23 the commission for that business location within the preceding
24 one (1) year.
25 (f) The fees collected under this section shall be deposited in the
26 enforcement and administration fund under IC 7.1-4-10.
27 SECTION 2. IC 7.1-3-18.5-2.4 IS ADDED TO THE INDIANA
28 CODE AS A NEW SECTION TO READ AS FOLLOWS
29 [EFFECTIVE JULY 1, 2024]: Sec. 2.4. (a) Subject to available
30 resources, the commission shall not issue a tobacco sales certificate,
31 except as otherwise authorized in this title and subject to the other
32 restrictions contained in this title, to the following persons:
33 (1) A person who does not have lawful status (as defined in
34 IC 9-13-2-92.3).
35 (2) A person who has been convicted within five (5) years
36 before the date of application of:
37 (A) a federal crime having a sentence of at least one (1)
38 year;
39 (B) a Level 1, Level 2, Level 3, Level 4, or Level 5 felony;
40 or
41 (C) a crime in a state other than Indiana having a penalty
42 equal to the penalty for an Indiana Level 1, Level 2, Level
SB 149—LS 6715/DI 137 3
1 3, Level 4, or Level 5 felony.
2 However, this subdivision does not apply to a conviction that
3 has been expunged under IC 35-38-9.
4 (3) A person who:
5 (A) does not own the premises to which the certificate will
6 be applicable;
7 (B) does not have a bona fide lease on the premises for the
8 full period for which the certificate is to be issued; or
9 (C) does not have a franchise agreement with a franchisor:
10 (i) that owns the premises to which the certificate will be
11 applicable; or
12 (ii) that has a bona fide lease on the premises for the full
13 period for which the certificate is to be issued.
14 (4) A law enforcement officer or an officer who is not an
15 elected officer of a municipal corporation, or governmental
16 subdivision, or of Indiana, charged with any duty or function
17 in the enforcement of this title.
18 (5) An officer or employee of a person engaged in the tobacco
19 traffic, which person is a nonresident of Indiana, or is
20 engaged in carrying on any phase of the manufacture of,
21 traffic in, or transportation of tobacco without a permit or
22 certificate under this title when a permit or certificate is
23 required by this title.
24 (6) A person whose place of business is conducted by a
25 manager or agent, unless the manager or agent possesses the
26 same qualifications required for the issuance of a tobacco
27 sales certificate to the person.
28 (7) A minor.
29 (8) A person non compos mentis.
30 (9) A person who has held a permit or certificate under this
31 title and who has had that permit or certificate revoked
32 within one (1) year prior to the date of application for a
33 tobacco sales certificate.
34 (10) A person who has made an application for a permit or
35 certificate of any type under this title which has been denied
36 less than one (1) year prior to the person's application for a
37 tobacco sales certificate unless the first application was denied
38 by reason of a procedural or technical defect.
39 (b) Subsection (a)(7) does not prevent a minor from being a
40 stockholder in a corporation.
41 SECTION 3. IC 7.1-3-18.5-3.2 IS ADDED TO THE INDIANA
42 CODE AS A NEW SECTION TO READ AS FOLLOWS
SB 149—LS 6715/DI 137 4
1 [EFFECTIVE JULY 1, 2024]: Sec. 3.2. If the majority of the
2 ownership of a business that is a certificate holder is sold or
3 transferred:
4 (1) the new ownership of the business must apply for a new
5 certificate under section 2 of this chapter; and
6 (2) the certificate and the permit number held by the previous
7 ownership of the business are void as of the date of the sale or
8 transfer of the ownership of the business.
9 SECTION 4. IC 7.1-3-18.5-9.2 IS ADDED TO THE INDIANA
10 CODE AS A NEW SECTION TO READ AS FOLLOWS
11 [EFFECTIVE JULY 1, 2024]: Sec. 9.2. (a) An employee of a
12 certificate holder must hold a valid:
13 (1) driver's license issued by a governmental entity; or
14 (2) identification card issued by a governmental entity;
15 to sell tobacco products.
16 (b) An employee must have the employee's driver's license or
17 identification card:
18 (1) in the employee's possession; and
19 (2) upon request, readily available to show to an excise officer
20 or law enforcement;
21 when selling tobacco products.
22 (c) If an employee holds a valid license or identification card as
23 described in subsection (a) but is unable to show the license or
24 identification card to an excise officer because the employee has
25 left the license or identification card in another location, or because
26 the license or identification card has otherwise been lost or mislaid,
27 the employee may sign a document:
28 (1) certifying that the employee holds a valid license or
29 identification card as required by subsection (a);
30 (2) explaining the reason that the employee does not have the
31 license or identification card in the employee's possession, and
32 what steps the employee is taking to retrieve the license or
33 identification card, or to apply for a replacement license or
34 identification card; and
35 (3) promising to provide an excise officer with a copy of the
36 license or identification card within a reasonable time period,
37 as determined by the excise officer.
38 SECTION 5. IC 7.1-5-7-1.5 IS ADDED TO THE INDIANA CODE
39 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
40 1, 2024]: Sec. 1.5. (a) The commission may impose a civil penalty on
41 a minor who, for the purpose of obtaining a tobacco product,
42 knowingly or intentionally:
SB 149—LS 6715/DI 137 5
1 (1) makes a false statement of age; or
2 (2) presents false evidence of age.
3 (b) The civil penalty may not exceed:
4 (1) two hundred fifty dollars ($250) for a first violation; or
5 (2) five hundred dollars ($500) for a second or subsequent
6 violation.
7 In addition, the commission shall require the minor to attend a
8 smoking cessation class approved by the commission. The minor
9 shall pay the costs of the class. If the minor fails to complete a
10 smoking cessation class within a time period established by the
11 commission, the commission may impose an additional civil penalty
12 equal to the civil penalty imposed for a violation of this section.
13 (c) The civil penalty shall be deposited in the Richard D. Doyle
14 youth tobacco education and enforcement fund established by
15 IC 7.1-6-2-6.
16 SECTION 6. IC 7.1-5-10-26 IS ADDED TO THE INDIANA CODE
17 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
18 1, 2024]: Sec. 26. A person who recklessly, knowingly, or
19 intentionally sells a tobacco product without a valid tobacco sales
20 certificate commits a Class C infraction.
21 SECTION 7. IC 35-46-1-11.4, AS ADDED BY P.L.49-2020,
22 SECTION 35, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
23 JULY 1, 2024]: Sec. 11.4. (a) This section Subsection (b) does not
24 apply to a tobacco and vaping business:
25 (1) operating as a tobacco and vaping business before July 1,
26 2020; or
27 (2) that began operating as a tobacco and vaping business after
28 June 30, 2020, and before July 1, 2024, if at the time the tobacco
29 and vaping business began operating the tobacco and vaping
30 business was not located in an area prohibited under this section.
31 (b) A person may not operate a tobacco and vaping business within
32 one thousand (1,000) feet of a public or private elementary or
33 secondary school, as measured between the nearest point of the
34 premises occupied by the tobacco and vaping business and the nearest
35 point of a building used by the school for instructional purposes.
36 (c) Subsection (d) does not apply to a tobacco and vaping
37 business:
38 (1) operating as a tobacco and vaping business before July 1,
39 2024; or
40 (2) that began operating as a tobacco and vaping business
41 after June 30, 2024, if at the time the tobacco and vaping
42 business began operating the tobacco and vaping business was
SB 149—LS 6715/DI 137 6
1 not located in an area prohibited under this section.
2 (d) A person may not operate a tobacco and vaping business
3 within one thousand (1,000) feet of school property, measured from
4 the nearest point of the premises occupied by the tobacco and
5 vaping business.
6 (c) (e) A person who violates this section commits a Class C
7 misdemeanor and, if the person holds a tobacco sales certificate, the
8 certificate is permanently revoked.
SB 149—LS 6715/DI 137 7
COMMITTEE REPORT
Madam President: The Senate Committee on Corrections and
Criminal Law, to which was referred Senate Bill No. 149, has had the
same under consideration and begs leave to report the same back to the
Senate with the recommendation that said bill be AMENDED as
follows:
Page 1, line 7, delete "the".
Page 1, delete lines 8 through 9.
Page 1, line 10, delete "2024,".
Page 1, run in lines 7 through 10.
Page 1, delete lines 11 through 12.
Page 2, line 33, delete "The" and insert "Subject to available
resources, the".
Page 2, delete line 37, begin a new line block indented and insert:
"(1) A person who does not have lawful status (as defined in
IC 9-13-2-92.3).".
Page 2, delete lines 38 through 39.
Page 2, line 40, delete "(3)" and insert "(2)".
Page 2, line 40, delete "ten (10)" and insert "five (5)".
Page 3, delete lines 9 through 12, begin a new line block indented
and insert:
"(3) A person who:
(A) does not own the premises to which the certificate will
be applicable;
(B) does not have a bona fide lease on the premises for the
full period for which the certificate is to be issued; or
(C) does not have a franchise agreement with a franchisor:
(i) that owns the premises to which the certificate will be
applicable; or
(ii) that has a bona fide lease on the premises for the full
period for which the certificate is to be issued.".
Page 3, line 13, delete "(5)" and insert "(4)".
Page 3, line 17, delete "(6)" and insert "(5)".
Page 3, line 23, delete "(7)" and insert "(6)".
Page 3, line 27, delete "(8)" and insert "(7)".
Page 3, line 28, delete "(9)" and insert "(8)".
Page 3, line 29, delete "(10)" and insert "(9)".
Page 3, line 33, delete "(11)" and insert "(10)".
Page 3, line 38, delete "(a)(8)" and insert "(a)(7)".
Page 3, delete lines 40 through 42.
Page 4, delete lines 1 through 14.
SB 149—LS 6715/DI 137 8
Page 4, line 29, delete "under IC 9-24-3; or" and insert "by a
governmental entity; or".
Page 4, line 30, delete "under IC 9-24-16;" and insert "by a
governmental entity;".
Page 4, delete lines 38 through 42, begin a new paragraph and
insert:
"(c) If an employee holds a valid license or identification card as
described in subsection (a) but is unable to show the license or
identification card to an excise officer because the employee has
left the license or identification card in another location, or because
the license or identification card has otherwise been lost or mislaid,
the employee may sign a document:
(1) certifying that the employee holds a valid license or
identification card as required by subsection (a);
(2) explaining the reason that the employee does not have the
license or identification card in the employee's possession, and
what steps the employee is taking to retrieve the license or
identification card, or to apply for a replacement license or
identification card; and
(3) promising to provide an excise officer with a copy of the
license or identification card within a reasonable time period,
as determined by the excise officer.".
Page 5, delete lines 1 through 3, begin a new paragraph and insert:
"SECTION 6. IC 7.1-5-7-1.5 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2024]: Sec. 1.5. (a) The commission may impose a civil penalty on
a minor who, for the purpose of obtaining a tobacco product,
knowingly or intentionally:
(1) makes a false statement of age; or
(2) presents false evidence of age.
(b) The civil penalty may not exceed:
(1) two hundred fifty dollars ($250) for a first violation; or
(2) five hundred dollars ($500) for a second or subsequent
violation.
In addition, the commission shall require the minor to attend a
smoking cessation class approved by the commission. The minor
shall pay the costs of the class. If the minor fails to complete a
smoking cessation class within a time period established by the
commission, the commission may impose an additional civil penalty
equal to the civil penalty imposed for a violation of this section.
(c) The civil penalty shall be deposited in the Richard D. Doyle
youth tobacco education and enforcement fund established by
SB 149—LS 6715/DI 137 9
IC 7.1-6-2-6.".
Page 5, delete lines 9 through 30, begin a new paragraph and insert:
"SECTION 8. IC 35-46-1-11.4, AS ADDED BY P.L.49-2020,
SECTION 35, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2024]: Sec. 11.4. (a) This section Subsection (b) does not
apply to a tobacco and vaping business:
(1) operating as a tobacco and vaping business before July 1,
2020; or
(2) that began operating as a tobacco and vaping business after
June 30, 2020, and before July 1, 2024, if at the time the tobacco
and vaping business began operating the tobacco and vaping
business was not located in an area prohibited under this section.
(b) A person may not operate a tobacco and vaping business within
one thousand (1,000) feet of a public or private elementary or
secondary school, as measured between the nearest point of the
premises occupied by the tobacco and vaping business and the nearest
point of a building used by the school for instructional purposes.
(c) Subsection (d) does not apply to a tobacco and vaping
business:
(1) operating as a tobacco and vaping business before July 1,
2024; or
(2) that began operating as a tobacco and vaping business
after June 30, 2024, if at the time the tobacco and vaping
business began operating the tobacco and vaping business was
not located in an area prohibited under this section.
(d) A person may not operate a tobacco and vaping business
within one thousand (1,000) feet of school property, measured from
the nearest point of the premises occupied by the tobacco and
vaping business.
(c) (e) A person who violates this section commits a Class C
misdemeanor and, if the person holds a tobacco sales certificate, the
certificate is permanently revoked.".
Renumber all SECTIONS consecutively.
and when so amended that said bill do pass.
(Reference is to SB 149 as introduced.)
FREEMAN, Chairperson
Committee Vote: Yeas 5, Nays 0.
SB 149—LS 6715/DI 137