*ES0205.1*
February 13, 2024
ENGROSSED
SENATE BILL No. 205
_____
DIGEST OF SB 205 (Updated February 13, 2024 10:59 am - DI 140)
Citations Affected: IC 7.1-3.
Synopsis: Collaborative brewing. Allows a small brewery to
manufacture beer for another small brewery if certain requirements are
met.
Effective: July 1, 2024.
Alting, Walker K, Niezgodski, Pol Jr.
(HOUSE SPONSORS — MANNING, TESHKA)
January 9, 2024, read first time and referred to Committee on Public Policy.
January 18, 2024, amended, reported favorably — Do Pass.
January 22, 2024, read second time, ordered engrossed. Engrossed.
January 23, 2024, read third time, passed. Yeas 39, nays 9.
HOUSE ACTION
February 6, 2024, read first time and referred to Committee on Public Policy.
February 13, 2024, reported — Do Pass.
ES 205—LS 6917/DI 137 February 13, 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. 205
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 7.1-3-2-7, AS AMENDED BY P.L.220-2023,
2 SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3 JULY 1, 2024]: Sec. 7. The holder of a brewer's permit or an
4 out-of-state brewer holding either a primary source of supply permit or
5 an out-of-state brewer's permit may do the following:
6 (1) Manufacture beer.
7 (2) Place beer in containers or bottles.
8 (3) Transport beer.
9 (4) Sell and deliver beer to a person holding a beer wholesaler's
10 permit issued under IC 7.1-3-3.
11 (5) If the brewer manufactures, at all of the brewer's breweries, an
12 aggregate of not more than ninety thousand (90,000) barrels of
13 beer in a calendar year for sale or distribution within Indiana, the
14 permit holder may do the following:
15 (A) Sell and deliver a total of not more than thirty thousand
16 (30,000) barrels of beer in a calendar year to a person holding
17 a retailer or a dealer permit under this title. The total number
ES 205—LS 6917/DI 137 2
1 of barrels of beer that the permit holder may sell and deliver
2 under this clause in a calendar year may not exceed thirty
3 thousand (30,000) barrels of beer.
4 (B) Be the proprietor of a restaurant that is not subject to the
5 minimum gross food sales or the minimum projected food
6 sales set forth in 905 IAC 1-41-2.
7 (C) Hold a beer retailer's permit, a wine retailer's permit, or a
8 liquor retailer's permit for a restaurant established under clause
9 (B).
10 (D) Transfer beer directly from the brewery to the restaurant
11 by means of:
12 (i) bulk containers; or
13 (ii) a continuous flow system.
14 (E) Install a window between the brewery and an adjacent
15 restaurant that allows the public and the permittee to view both
16 premises.
17 (F) Install a doorway or other opening between the brewery
18 and an adjacent restaurant that provides the public and the
19 permittee with access to both premises.
20 (G) Sell the brewery's beer by the glass for consumption on the
21 premises. Brewers permitted to sell beer by the glass under
22 this clause must make food available for consumption on the
23 premises. A brewer may comply with the requirements of this
24 clause by doing any of the following:
25 (i) Allowing a vehicle of transportation that is a food
26 establishment (as defined in IC 16-18-2-137) to serve food
27 near the brewer's licensed premises.
28 (ii) Placing menus in the brewer's premises of restaurants
29 that will deliver food to the brewery.
30 (iii) Providing food prepared at the brewery.
31 (H) Sell and deliver beer to a consumer at the licensed
32 premises of the brewer or at the residence of the consumer.
33 Notwithstanding IC 7.1-1-3-20, the licensed premises may
34 include the brewery parking lot or an area adjacent to the
35 brewery that may only be used for the purpose of conveying
36 alcoholic beverages and other nonalcoholic items to a
37 customer subject to section 10 of this chapter, and may not be
38 used for point of sale purposes or any other purpose. The
39 delivery to a consumer may be made only in a quantity at any
40 one (1) time of not more than one-half (1/2) barrel, but the
41 beer may be contained in bottles or other permissible
42 containers.
ES 205—LS 6917/DI 137 3
1 (I) Sell the brewery's beer as authorized by this section for
2 carryout on Sunday in a quantity at any one (1) time of not
3 more than five hundred seventy-six (576) ounces. A brewer's
4 beer may be sold under this clause at any address for which the
5 brewer holds a brewer's permit issued under this chapter if the
6 address is located within the same city boundaries in which the
7 beer was manufactured.
8 (J) With the approval of the commission, participate:
9 (i) individually; or
10 (ii) with other permit holders under this chapter, holders of
11 artisan distiller's permits, holders of farm winery permits, or
12 any combination of holders described in this item;
13 in a trade show or an exposition at which products of each
14 permit holder participant are displayed, promoted, and sold.
15 All of the permit holders may occupy the same tent, structure,
16 or building. The commission may not grant to a holder of a
17 permit under this chapter approval under this clause to
18 participate in a trade show or exposition for more than
19 forty-five (45) days in a calendar year.
20 (K) Store or condition beer in a secure building that is:
21 (i) separate from the brewery; and
22 (ii) owned or leased by the permit holder.
23 (L) Transfer beer from a building described in clause (K) back
24 to the brewery.
25 (M) Sell or transfer beer directly to a beer wholesaler from a
26 building described in clause (K), but may not sell or transfer
27 beer from the building to any other permittee or a consumer.
28 The brewer shall maintain an adequate written record of the
29 beer transferred:
30 (i) between the brewery and the separate building; and
31 (ii) from the separate building to the wholesaler.
32 (N) Sell the brewery's beer to the holder of a supplemental
33 caterer's permit issued under IC 7.1-3-9.5 for on-premises
34 consumption only at an event that is held outdoors on property
35 that is contiguous to the brewery as approved by the
36 commission.
37 (O) Receive liquor from the holder of a distiller's permit issued
38 under IC 7.1-3-7 or the holder of an artisan distiller's permit
39 under IC 7.1-3-27 that is located in the same county as the
40 brewery for the purpose of carbonating and canning the liquor.
41 Upon the completion of canning of the liquor, the product
42 must be returned to the original production facility within
ES 205—LS 6917/DI 137 4
1 forty-eight (48) hours. The activity under this clause is not an
2 interest under IC 7.1-5-9.
3 (P) Receive beer from another permit holder under this
4 subdivision for the purpose of bottling and packaging the beer.
5 Upon completion of bottling and packaging the beer, the
6 product must be returned to the original permit holder who
7 manufactured the beer. The number of barrels of beer that a
8 permit holder receives, bottles, and packages under this clause
9 may not exceed the number of barrels of beer that the permit
10 holder produced from raw materials at the licensed premises
11 of the permit holder in the same calendar year. The activity
12 under this clause is not an interest under IC 7.1-5-9.
13 (Q) Sell or transfer beer directly to a food manufacturer
14 located in Indiana that is registered with the federal Food and
15 Drug Administration for the purpose of adding or integrating
16 the beer into a product or recipe.
17 (R) Manufacture beer for another permit holder under this
18 subdivision. Upon completion of manufacturing the beer,
19 the product must be transported to the permit holder for
20 which the beer was manufactured. To qualify under this
21 clause:
22 (i) the permit holder for which the beer is manufactured
23 must have manufactured not less than forty (40) barrels
24 of beer produced from raw materials at the licensed
25 premises of the permit holder in the previous calendar
26 year; and
27 (ii) the number of barrels of beer that a permit holder
28 manufactures under this clause may not exceed the
29 number of barrels of beer that the permit holder
30 produced from raw materials at the licensed premises of
31 the permit holder in the same calendar year.
32 All records required by the federal Alcohol and Tobacco
33 Tax and Trade Bureau regarding the number of barrels of
34 beer produced from raw materials at the licensed premises
35 of a permit holder must be made available to the
36 commission upon request. The activity under this clause is
37 not an interest under IC 7.1-5-9.
38 (6) If the brewer's brewery manufactures more than ninety
39 thousand (90,000) barrels of beer in a calendar year for sale or
40 distribution within Indiana, the permit holder may own a portion
41 of the corporate stock of another brewery that:
42 (A) is located in the same county as the brewer's brewery;
ES 205—LS 6917/DI 137 5
1 (B) manufactures less than ninety thousand (90,000) barrels of
2 beer in a calendar year; and
3 (C) is the proprietor of a restaurant that operates under
4 subdivision (5).
5 (7) Provide complimentary samples of beer that are:
6 (A) produced by the brewer; and
7 (B) offered to consumers for consumption on the brewer's
8 premises.
9 (8) Own a portion of the corporate stock of a sports corporation
10 that:
11 (A) manages a minor league baseball stadium located in the
12 same county as the brewer's brewery; and
13 (B) holds a beer retailer's permit, a wine retailer's permit, or a
14 liquor retailer's permit for a restaurant located in that stadium.
15 (9) For beer described in IC 7.1-1-2-3(a)(4):
16 (A) may allow transportation to and consumption of the beer
17 on the licensed premises; and
18 (B) may not sell, offer to sell, or allow sale of the beer on the
19 licensed premises.
ES 205—LS 6917/DI 137 6
COMMITTEE REPORT
Madam President: The Senate Committee on Public Policy, to which
was referred Senate Bill No. 205, 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 4, line 4, after "beer" delete "," and insert ".".
Page 4, delete line 5.
Page 4, line 6, delete "subdivision.".
Page 4, line 6, delete ":".
Page 4, line 7, delete "(i)".
Page 4, line 9, delete "; or" and insert ".".
Page 4, delete lines 10 through 12.
Page 4, run in lines 4 through 13.
Page 4, line 14, delete "manufactures,".
Page 4, between lines 22 and 23, begin a new line double block
indented and insert:
"(R) Manufacture beer for another permit holder under
this subdivision. Upon completion of manufacturing the
beer, the product must be transported to the permit holder
for which the beer was manufactured. To qualify under
this clause:
(i) the permit holder for which the beer is manufactured
must have manufactured not less than forty (40) barrels
of beer produced from raw materials at the licensed
premises of the permit holder in the previous calendar
year; and
(ii) the number of barrels of beer that a permit holder
manufactures under this clause may not exceed the
number of barrels of beer that the permit holder
produced from raw materials at the licensed premises of
the permit holder in the same calendar year.
All records required by the federal Alcohol and Tobacco
Tax and Trade Bureau regarding the number of barrels of
beer produced from raw materials at the licensed premises
of a permit holder must be made available to the
commission upon request. The activity under this clause is
not an interest under IC 7.1-5-9.".
and when so amended that said bill do pass.
(Reference is to SB 205 as introduced.)
ES 205—LS 6917/DI 137 7
ALTING, Chairperson
Committee Vote: Yeas 8, Nays 0.
_____
COMMITTEE REPORT
Mr. Speaker: Your Committee on Public Policy, to which was
referred Senate Bill 205, has had the same under consideration and
begs leave to report the same back to the House with the
recommendation that said bill do pass.
(Reference is to SB 205 as printed January 19, 2024.)
MANNING
Committee Vote: Yeas 12, Nays 0
ES 205—LS 6917/DI 137