*ES0149.1*
February 27, 2024
ENGROSSED
SENATE BILL No. 149
_____
DIGEST OF SB 149 (Updated February 27, 2024 11:41 am - DI 144)
Citations Affected: IC 7.1-3; IC 7.1-5; IC 35-46.
Synopsis: Tobacco. Prohibits a retail establishment from holding more
than one active tobacco sales certificate (certificate) for a retail location
at any time. Prohibits the alcohol and tobacco commission
(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 90 days after the sale or transfer of the ownership
of the business. Specifies that an employee of a certificate holder
(employee) must hold a valid: (1) driver's license issued by the state of
Indiana or another state; or (2) identification card issued by the state of
(Continued next page)
Effective: July 1, 2024.
Rogers, Freeman, Donato, Alexander
(HOUSE SPONSORS — KING, MCNAMARA, MELTZER, CRISWELL)
January 9, 2024, read first time and referred to Committee on Corrections and Criminal
Law.
January 30, 2024, amended, reported favorably — Do Pass.
February 1, 2024, read second time, ordered engrossed. Engrossed.
February 5, 2024, read third time, passed. Yeas 48, nays 0.
HOUSE ACTION
February 12, 2024, read first time and referred to Committee on Public Policy.
February 27, 2024, amended, reported — Do Pass.
ES 149—LS 6715/DI 137 Digest Continued
Indiana, another state, or the United States; to sell tobacco products.
Requires an employee to have the driver's license, identification card,
or a copy of these documents readily available to show an excise officer
or law enforcement when selling tobacco products. Allows an
employee who is unable to show these documents to provide certain
evidence within five days. Permits the commission to impose a civil
penalty on the certificate holder if an employee fails to timely produce
this evidence. Provides that a person who recklessly, knowingly, or
intentionally sells a tobacco product without a valid certificate commits
a Class C infraction. Makes it a Class C misdemeanor for a person to
operate a tobacco and vaping business within 1,000 feet of school
property. Specifies exceptions.
ES 149—LS 6715/DI 137ES 149—LS 6715/DI 137 February 27, 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.
ENGROSSED
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
ES 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 either:
5 (i) the sales or purchase agreement; or
6 (ii) an affidavit signed by the applicant concerning the
7 sale or purchase, on a form prescribed by the
8 commission, that includes the name and address of the
9 seller and purchaser.
10 (C) The certificate held by the previous ownership of the
11 business.
12 (b) A separate certificate is required for each location where the
13 tobacco products or electronic cigarettes are sold or distributed. A
14 retail establishment may not hold more than one (1) active tobacco
15 sales certificate for a retail location at any time.
16 (c) A certificate holder shall conspicuously display the holder's
17 certificate on the holder's premises where the tobacco products or
18 electronic cigarettes are sold or distributed.
19 (d) Any intentional misstatement or suppression of a material fact
20 in an application filed under this section constitutes grounds for denial
21 of the certificate.
22 (e) A certificate may be issued only to a person who meets the
23 following requirements:
24 (1) If the person is an individual, the person must be at least
25 twenty-one (21) years of age.
26 (2) The person must be authorized to do business in Indiana.
27 (3) The person has not had an interest in a certificate revoked by
28 the commission for that business location within the preceding
29 one (1) year.
30 (f) The fees collected under this section shall be deposited in the
31 enforcement and administration fund under IC 7.1-4-10.
32 SECTION 2. IC 7.1-3-18.5-2.4 IS ADDED TO THE INDIANA
33 CODE AS A NEW SECTION TO READ AS FOLLOWS
34 [EFFECTIVE JULY 1, 2024]: Sec. 2.4. (a) Subject to available
35 resources, the commission shall not issue a tobacco sales certificate,
36 except as otherwise authorized in this title and subject to the other
37 restrictions contained in this title, to the following persons:
38 (1) A person who does not have lawful status (as defined in
39 IC 9-13-2-92.3).
40 (2) A person who has been convicted within five (5) years
41 before the date of application of:
42 (A) a federal crime having a sentence of at least one (1)
ES 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 (3) A person who does not meet at least one (1) of the
10 following descriptions:
11 (A) The person owns the premises to which the certificate
12 will be applicable.
13 (B) The person has a valid lease on the premises:
14 (i) at the time of the application for a certificate; and
15 (ii) for the duration of the period in which the person
16 sells or distributes in the manner described in section 1
17 of this chapter.
18 (C) The person has a franchise agreement with a
19 franchisor:
20 (i) that owns the premises to which the certificate will be
21 applicable; or
22 (ii) that has a bona fide lease on the premises for the full
23 period for which the certificate is to be issued.
24 (4) 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 (5) A minor.
29 (6) A person non compos mentis.
30 (7) 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 (8) 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)(5) 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
ES 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 ninety (90) days after the
8 date of the sale or 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 the state of Indiana or another
14 state; or
15 (2) identification card issued by the state of Indiana, another
16 state, or the United States;
17 to sell tobacco products.
18 (b) An employee must have the employee's driver's license or
19 identification card or a copy of the employee's driver's license or
20 identification card:
21 (1) either:
22 (A) in the employee's possession; or
23 (B) on file with the employee's employer; and
24 (2) upon request, readily available to show to an excise officer
25 or law enforcement;
26 when selling tobacco products.
27 (c) If an employee holds a valid license or identification card as
28 described in subsection (a) but is unable to show the license,
29 identification card, or a copy to an excise officer under subsection
30 (b) because:
31 (1) the employee has left the license, identification card, or
32 copy in another location; or
33 (2) the license, identification card, or copy has otherwise been
34 lost or mislaid;
35 the employee may, within five (5) days of the employee's inability
36 to show the license, identification card, or copy to the excise officer,
37 produce to the excise officer or to the office of the commission
38 satisfactory evidence of a license or identification card issued to the
39 individual that was valid at the time the individual was unable to
40 show the license, identification card, or copy.
41 (d) If an employee who is unable to show a license, identification
42 card, or copy to an excise officer fails to produce satisfactory
ES 149—LS 6715/DI 137 5
1 evidence within five (5) days in the manner described in subsection
2 (c), the commission may impose a civil penalty on the certificate
3 holder under IC 7.1-3-23-3.
4 SECTION 5. 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 6. 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 Subsection (b) does not
12 apply to a tobacco 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, and before July 1, 2024, if at the time the tobacco
17 and vaping business began operating the tobacco and vaping
18 business was not located 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) Subsection (d) does not apply to a tobacco and vaping
25 business:
26 (1) operating as a tobacco and vaping business before July 1,
27 2024; or
28 (2) that began operating as a tobacco and vaping business
29 after June 30, 2024, if at the time the tobacco and vaping
30 business began operating the tobacco and vaping business was
31 not located in an area prohibited under this section.
32 (d) A person may not operate a tobacco and vaping business
33 within one thousand (1,000) feet of school property, measured from
34 the nearest point of the premises occupied by the tobacco and
35 vaping business.
36 (c) (e) A person who violates this section commits a Class C
37 misdemeanor.
ES 149—LS 6715/DI 137 6
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.
ES 149—LS 6715/DI 137 7
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
ES 149—LS 6715/DI 137 8
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.
ES 149—LS 6715/DI 137 9
COMMITTEE REPORT
Mr. Speaker: Your Committee on Public Policy, to which was
referred Senate Bill 149, has had the same under consideration and
begs leave to report the same back to the House with the
recommendation that said bill be amended as follows:
Page 2, line 3, after "individual," insert "either:
(i) the sales or purchase agreement; or
(ii) an affidavit signed by the applicant concerning the
sale or purchase, on a form prescribed by the
commission, that includes the name and address of the
seller and purchaser.".
Page 2, delete line 4.
Page 2, line 10, after "certificate" insert "for a retail location".
Page 3, line 4, delete "who:" and insert "who does not meet at least
one (1) of the following descriptions:
(A) The person owns the premises to which the certificate
will be applicable.
(B) The person has a valid lease on the premises:
(i) at the time of the application for a certificate; and
(ii) for the duration of the period in which the person
sells or distributes in the manner described in section 1
of this chapter.
(C) The person has 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, delete lines 5 through 23.
Page 3, line 24, delete "(6)" and insert "(4)".
Page 3, line 28, delete "(7)" and insert "(5)".
Page 3, line 29, delete "(8)" and insert "(6)".
Page 3, line 30, delete "(9)" and insert "(7)".
Page 3, line 34, delete "(10)" and insert "(8)".
Page 3, line 39, delete "(a)(7)" and insert "(a)(5)".
Page 4, line 7, delete "as of" and insert "ninety (90) days after".
Page 4, delete lines 9 through 42, begin a new paragraph and insert:
"SECTION 4. IC 7.1-3-18.5-9.2 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2024]: Sec. 9.2. (a) An employee of a
certificate holder must hold a valid:
(1) driver's license issued by the state of Indiana or another
ES 149—LS 6715/DI 137 10
state; or
(2) identification card issued by the state of Indiana, another
state, or the United States;
to sell tobacco products.
(b) An employee must have the employee's driver's license or
identification card or a copy of the employee's driver's license or
identification card:
(1) either:
(A) in the employee's possession; or
(B) on file with the employee's employer; and
(2) upon request, readily available to show to an excise officer
or law enforcement;
when selling tobacco products.
(c) If an employee holds a valid license or identification card as
described in subsection (a) but is unable to show the license,
identification card, or a copy to an excise officer under subsection
(b) because:
(1) the employee has left the license, identification card, or
copy in another location; or
(2) the license, identification card, or copy has otherwise been
lost or mislaid;
the employee may, within five (5) days of the employee's inability
to show the license, identification card, or copy to the excise officer,
produce to the excise officer or to the office of the commission
satisfactory evidence of a license or identification card issued to the
individual that was valid at the time the individual was unable to
show the license, identification card, or copy.
(d) If an employee who is unable to show a license, identification
card, or copy to an excise officer fails to produce satisfactory
evidence within five (5) days in the manner described in subsection
(c), the commission may impose a civil penalty on the certificate
holder under IC 7.1-3-23-3.".
Page 5, delete lines 1 through 15.
Page 6, line 7, delete "and, if the person holds a tobacco sales
certificate, the" and insert ".".
Page 6, delete line 8.
Renumber all SECTIONS consecutively.
and when so amended that said bill do pass.
(Reference is to SB 149 as printed January 31, 2024.)
ES 149—LS 6715/DI 137 11
MANNING
Committee Vote: yeas 9, nays 0.
ES 149—LS 6715/DI 137