Indiana 2024 Regular Session

Indiana Senate Bill SB0205 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
	1	+	ES0205.1
	2	+	February 13, 2024
	3	+	ENGROSSED
	4	+	SENATE BILL No. 205
	5	+	_____
	6	+	DIGEST OF SB 205 (Updated February 13, 2024 10:59 am - DI 140)
	7	+	Citations Affected: IC 7.1-3.
	8	+	Synopsis: Collaborative brewing. Allows a small brewery to
	9	+	manufacture beer for another small brewery if certain requirements are
	10	+	met.
	11	+	Effective: July 1, 2024.
	12	+	Alting, Walker K, Niezgodski, Pol Jr.
	13	+	(HOUSE SPONSORS — MANNING, TESHKA)
	14	+	January 9, 2024, read first time and referred to Committee on Public Policy.
	15	+	January 18, 2024, amended, reported favorably — Do Pass.
	16	+	January 22, 2024, read second time, ordered engrossed. Engrossed.
	17	+	January 23, 2024, read third time, passed. Yeas 39, nays 9.
	18	+	HOUSE ACTION
	19	+	February 6, 2024, read first time and referred to Committee on Public Policy.
	20	+	February 13, 2024, reported — Do Pass.
	21	+	ES 205—LS 6917/DI 137 February 13, 2024
1	22		Second Regular Session of the 123rd General Assembly (2024)
2	23		PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
3	24		Constitution) is being amended, the text of the existing provision will appear in this style type,
4	25		additions will appear in this style type, and deletions will appear in this style type.
5	26		Additions: Whenever a new statutory provision is being enacted (or a new constitutional
6	27		provision adopted), the text of the new provision will appear in this style type. Also, the
7	28		word NEW will appear in that style type in the introductory clause of each SECTION that adds
8	29		a new provision to the Indiana Code or the Indiana Constitution.
9	30		Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
10	31		between statutes enacted by the 2023 Regular Session of the General Assembly.
11		-	SENATE ENROLLED ACT No. 205
12		-	AN ACT to amend the Indiana Code concerning alcohol and
13		-	tobacco.
	32	+	ENGROSSED
	33	+	SENATE BILL No. 205
	34	+	A BILL FOR AN ACT to amend the Indiana Code concerning
	35	+	alcohol and tobacco.
14	36		Be it enacted by the General Assembly of the State of Indiana:
15		-	SECTION 1. IC 7.1-3-2-7, AS AMENDED BY P.L.220-2023,
16		-	SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
17		-	JULY 1, 2024]: Sec. 7. The holder of a brewer's permit or an
18		-	out-of-state brewer holding either a primary source of supply permit or
19		-	an out-of-state brewer's permit may do the following:
20		-	(1) Manufacture beer.
21		-	(2) Place beer in containers or bottles.
22		-	(3) Transport beer.
23		-	(4) Sell and deliver beer to a person holding a beer wholesaler's
24		-	permit issued under IC 7.1-3-3.
25		-	(5) If the brewer manufactures, at all of the brewer's breweries, an
26		-	aggregate of not more than ninety thousand (90,000) barrels of
27		-	beer in a calendar year for sale or distribution within Indiana, the
28		-	permit holder may do the following:
29		-	(A) Sell and deliver a total of not more than thirty thousand
30		-	(30,000) barrels of beer in a calendar year to a person holding
31		-	a retailer or a dealer permit under this title. The total number
32		-	of barrels of beer that the permit holder may sell and deliver
33		-	under this clause in a calendar year may not exceed thirty
34		-	thousand (30,000) barrels of beer.
35		-	(B) Be the proprietor of a restaurant that is not subject to the
36		-	SEA 205 2
37		-	minimum gross food sales or the minimum projected food
38		-	sales set forth in 905 IAC 1-41-2.
39		-	(C) Hold a beer retailer's permit, a wine retailer's permit, or a
40		-	liquor retailer's permit for a restaurant established under clause
41		-	(B).
42		-	(D) Transfer beer directly from the brewery to the restaurant
43		-	by means of:
44		-	(i) bulk containers; or
45		-	(ii) a continuous flow system.
46		-	(E) Install a window between the brewery and an adjacent
47		-	restaurant that allows the public and the permittee to view both
48		-	premises.
49		-	(F) Install a doorway or other opening between the brewery
50		-	and an adjacent restaurant that provides the public and the
51		-	permittee with access to both premises.
52		-	(G) Sell the brewery's beer by the glass for consumption on the
53		-	premises. Brewers permitted to sell beer by the glass under
54		-	this clause must make food available for consumption on the
55		-	premises. A brewer may comply with the requirements of this
56		-	clause by doing any of the following:
57		-	(i) Allowing a vehicle of transportation that is a food
58		-	establishment (as defined in IC 16-18-2-137) to serve food
59		-	near the brewer's licensed premises.
60		-	(ii) Placing menus in the brewer's premises of restaurants
61		-	that will deliver food to the brewery.
62		-	(iii) Providing food prepared at the brewery.
63		-	(H) Sell and deliver beer to a consumer at the licensed
64		-	premises of the brewer or at the residence of the consumer.
65		-	Notwithstanding IC 7.1-1-3-20, the licensed premises may
66		-	include the brewery parking lot or an area adjacent to the
67		-	brewery that may only be used for the purpose of conveying
68		-	alcoholic beverages and other nonalcoholic items to a
69		-	customer subject to section 10 of this chapter, and may not be
70		-	used for point of sale purposes or any other purpose. The
71		-	delivery to a consumer may be made only in a quantity at any
72		-	one (1) time of not more than one-half (1/2) barrel, but the
73		-	beer may be contained in bottles or other permissible
74		-	containers.
75		-	(I) Sell the brewery's beer as authorized by this section for
76		-	carryout on Sunday in a quantity at any one (1) time of not
77		-	more than five hundred seventy-six (576) ounces. A brewer's
78		-	beer may be sold under this clause at any address for which the
79		-	SEA 205 3
80		-	brewer holds a brewer's permit issued under this chapter if the
81		-	address is located within the same city boundaries in which the
82		-	beer was manufactured.
83		-	(J) With the approval of the commission, participate:
84		-	(i) individually; or
85		-	(ii) with other permit holders under this chapter, holders of
86		-	artisan distiller's permits, holders of farm winery permits, or
87		-	any combination of holders described in this item;
88		-	in a trade show or an exposition at which products of each
89		-	permit holder participant are displayed, promoted, and sold.
90		-	All of the permit holders may occupy the same tent, structure,
91		-	or building. The commission may not grant to a holder of a
92		-	permit under this chapter approval under this clause to
93		-	participate in a trade show or exposition for more than
94		-	forty-five (45) days in a calendar year.
95		-	(K) Store or condition beer in a secure building that is:
96		-	(i) separate from the brewery; and
97		-	(ii) owned or leased by the permit holder.
98		-	(L) Transfer beer from a building described in clause (K) back
99		-	to the brewery.
100		-	(M) Sell or transfer beer directly to a beer wholesaler from a
101		-	building described in clause (K), but may not sell or transfer
102		-	beer from the building to any other permittee or a consumer.
103		-	The brewer shall maintain an adequate written record of the
104		-	beer transferred:
105		-	(i) between the brewery and the separate building; and
106		-	(ii) from the separate building to the wholesaler.
107		-	(N) Sell the brewery's beer to the holder of a supplemental
108		-	caterer's permit issued under IC 7.1-3-9.5 for on-premises
109		-	consumption only at an event that is held outdoors on property
110		-	that is contiguous to the brewery as approved by the
111		-	commission.
112		-	(O) Receive liquor from the holder of a distiller's permit issued
113		-	under IC 7.1-3-7 or the holder of an artisan distiller's permit
114		-	under IC 7.1-3-27 that is located in the same county as the
115		-	brewery for the purpose of carbonating and canning the liquor.
116		-	Upon the completion of canning of the liquor, the product
117		-	must be returned to the original production facility within
118		-	forty-eight (48) hours. The activity under this clause is not an
119		-	interest under IC 7.1-5-9.
120		-	(P) Receive beer from another permit holder under this
121		-	subdivision for the purpose of bottling and packaging the beer.
122		-	SEA 205 4
123		-	Upon completion of bottling and packaging the beer, the
124		-	product must be returned to the original permit holder who
125		-	manufactured the beer. The number of barrels of beer that a
126		-	permit holder receives, bottles, and packages under this clause
127		-	may not exceed the number of barrels of beer that the permit
128		-	holder produced from raw materials at the licensed premises
129		-	of the permit holder in the same calendar year. The activity
130		-	under this clause is not an interest under IC 7.1-5-9.
131		-	(Q) Sell or transfer beer directly to a food manufacturer
132		-	located in Indiana that is registered with the federal Food and
133		-	Drug Administration for the purpose of adding or integrating
134		-	the beer into a product or recipe.
135		-	(R) Manufacture beer for another permit holder under this
136		-	subdivision. Upon completion of manufacturing the beer,
137		-	the product must be transported to the permit holder for
138		-	which the beer was manufactured. To qualify under this
139		-	clause:
	37	+	1 SECTION 1. IC 7.1-3-2-7, AS AMENDED BY P.L.220-2023,
	38	+	2 SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	39	+	3 JULY 1, 2024]: Sec. 7. The holder of a brewer's permit or an
	40	+	4 out-of-state brewer holding either a primary source of supply permit or
	41	+	5 an out-of-state brewer's permit may do the following:
	42	+	6 (1) Manufacture beer.
	43	+	7 (2) Place beer in containers or bottles.
	44	+	8 (3) Transport beer.
	45	+	9 (4) Sell and deliver beer to a person holding a beer wholesaler's
	46	+	10 permit issued under IC 7.1-3-3.
	47	+	11 (5) If the brewer manufactures, at all of the brewer's breweries, an
	48	+	12 aggregate of not more than ninety thousand (90,000) barrels of
	49	+	13 beer in a calendar year for sale or distribution within Indiana, the
	50	+	14 permit holder may do the following:
	51	+	15 (A) Sell and deliver a total of not more than thirty thousand
	52	+	16 (30,000) barrels of beer in a calendar year to a person holding
	53	+	17 a retailer or a dealer permit under this title. The total number
	54	+	ES 205—LS 6917/DI 137 2
	55	+	1 of barrels of beer that the permit holder may sell and deliver
	56	+	2 under this clause in a calendar year may not exceed thirty
	57	+	3 thousand (30,000) barrels of beer.
	58	+	4 (B) Be the proprietor of a restaurant that is not subject to the
	59	+	5 minimum gross food sales or the minimum projected food
	60	+	6 sales set forth in 905 IAC 1-41-2.
	61	+	7 (C) Hold a beer retailer's permit, a wine retailer's permit, or a
	62	+	8 liquor retailer's permit for a restaurant established under clause
	63	+	9 (B).
	64	+	10 (D) Transfer beer directly from the brewery to the restaurant
	65	+	11 by means of:
	66	+	12 (i) bulk containers; or
	67	+	13 (ii) a continuous flow system.
	68	+	14 (E) Install a window between the brewery and an adjacent
	69	+	15 restaurant that allows the public and the permittee to view both
	70	+	16 premises.
	71	+	17 (F) Install a doorway or other opening between the brewery
	72	+	18 and an adjacent restaurant that provides the public and the
	73	+	19 permittee with access to both premises.
	74	+	20 (G) Sell the brewery's beer by the glass for consumption on the
	75	+	21 premises. Brewers permitted to sell beer by the glass under
	76	+	22 this clause must make food available for consumption on the
	77	+	23 premises. A brewer may comply with the requirements of this
	78	+	24 clause by doing any of the following:
	79	+	25 (i) Allowing a vehicle of transportation that is a food
	80	+	26 establishment (as defined in IC 16-18-2-137) to serve food
	81	+	27 near the brewer's licensed premises.
	82	+	28 (ii) Placing menus in the brewer's premises of restaurants
	83	+	29 that will deliver food to the brewery.
	84	+	30 (iii) Providing food prepared at the brewery.
	85	+	31 (H) Sell and deliver beer to a consumer at the licensed
	86	+	32 premises of the brewer or at the residence of the consumer.
	87	+	33 Notwithstanding IC 7.1-1-3-20, the licensed premises may
	88	+	34 include the brewery parking lot or an area adjacent to the
	89	+	35 brewery that may only be used for the purpose of conveying
	90	+	36 alcoholic beverages and other nonalcoholic items to a
	91	+	37 customer subject to section 10 of this chapter, and may not be
	92	+	38 used for point of sale purposes or any other purpose. The
	93	+	39 delivery to a consumer may be made only in a quantity at any
	94	+	40 one (1) time of not more than one-half (1/2) barrel, but the
	95	+	41 beer may be contained in bottles or other permissible
	96	+	42 containers.
	97	+	ES 205—LS 6917/DI 137 3
	98	+	1 (I) Sell the brewery's beer as authorized by this section for
	99	+	2 carryout on Sunday in a quantity at any one (1) time of not
	100	+	3 more than five hundred seventy-six (576) ounces. A brewer's
	101	+	4 beer may be sold under this clause at any address for which the
	102	+	5 brewer holds a brewer's permit issued under this chapter if the
	103	+	6 address is located within the same city boundaries in which the
	104	+	7 beer was manufactured.
	105	+	8 (J) With the approval of the commission, participate:
	106	+	9 (i) individually; or
	107	+	10 (ii) with other permit holders under this chapter, holders of
	108	+	11 artisan distiller's permits, holders of farm winery permits, or
	109	+	12 any combination of holders described in this item;
	110	+	13 in a trade show or an exposition at which products of each
	111	+	14 permit holder participant are displayed, promoted, and sold.
	112	+	15 All of the permit holders may occupy the same tent, structure,
	113	+	16 or building. The commission may not grant to a holder of a
	114	+	17 permit under this chapter approval under this clause to
	115	+	18 participate in a trade show or exposition for more than
	116	+	19 forty-five (45) days in a calendar year.
	117	+	20 (K) Store or condition beer in a secure building that is:
	118	+	21 (i) separate from the brewery; and
	119	+	22 (ii) owned or leased by the permit holder.
	120	+	23 (L) Transfer beer from a building described in clause (K) back
	121	+	24 to the brewery.
	122	+	25 (M) Sell or transfer beer directly to a beer wholesaler from a
	123	+	26 building described in clause (K), but may not sell or transfer
	124	+	27 beer from the building to any other permittee or a consumer.
	125	+	28 The brewer shall maintain an adequate written record of the
	126	+	29 beer transferred:
	127	+	30 (i) between the brewery and the separate building; and
	128	+	31 (ii) from the separate building to the wholesaler.
	129	+	32 (N) Sell the brewery's beer to the holder of a supplemental
	130	+	33 caterer's permit issued under IC 7.1-3-9.5 for on-premises
	131	+	34 consumption only at an event that is held outdoors on property
	132	+	35 that is contiguous to the brewery as approved by the
	133	+	36 commission.
	134	+	37 (O) Receive liquor from the holder of a distiller's permit issued
	135	+	38 under IC 7.1-3-7 or the holder of an artisan distiller's permit
	136	+	39 under IC 7.1-3-27 that is located in the same county as the
	137	+	40 brewery for the purpose of carbonating and canning the liquor.
	138	+	41 Upon the completion of canning of the liquor, the product
	139	+	42 must be returned to the original production facility within
	140	+	ES 205—LS 6917/DI 137 4
	141	+	1 forty-eight (48) hours. The activity under this clause is not an
	142	+	2 interest under IC 7.1-5-9.
	143	+	3 (P) Receive beer from another permit holder under this
	144	+	4 subdivision for the purpose of bottling and packaging the beer.
	145	+	5 Upon completion of bottling and packaging the beer, the
	146	+	6 product must be returned to the original permit holder who
	147	+	7 manufactured the beer. The number of barrels of beer that a
	148	+	8 permit holder receives, bottles, and packages under this clause
	149	+	9 may not exceed the number of barrels of beer that the permit
	150	+	10 holder produced from raw materials at the licensed premises
	151	+	11 of the permit holder in the same calendar year. The activity
	152	+	12 under this clause is not an interest under IC 7.1-5-9.
	153	+	13 (Q) Sell or transfer beer directly to a food manufacturer
	154	+	14 located in Indiana that is registered with the federal Food and
	155	+	15 Drug Administration for the purpose of adding or integrating
	156	+	16 the beer into a product or recipe.
	157	+	17 (R) Manufacture beer for another permit holder under this
	158	+	18 subdivision. Upon completion of manufacturing the beer,
	159	+	19 the product must be transported to the permit holder for
	160	+	20 which the beer was manufactured. To qualify under this
	161	+	21 clause:
	162	+	22 (i) the permit holder for which the beer is manufactured
	163	+	23 must have manufactured not less than forty (40) barrels
	164	+	24 of beer produced from raw materials at the licensed
	165	+	25 premises of the permit holder in the previous calendar
	166	+	26 year; and
	167	+	27 (ii) the number of barrels of beer that a permit holder
	168	+	28 manufactures under this clause may not exceed the
	169	+	29 number of barrels of beer that the permit holder
	170	+	30 produced from raw materials at the licensed premises of
	171	+	31 the permit holder in the same calendar year.
	172	+	32 All records required by the federal Alcohol and Tobacco
	173	+	33 Tax and Trade Bureau regarding the number of barrels of
	174	+	34 beer produced from raw materials at the licensed premises
	175	+	35 of a permit holder must be made available to the
	176	+	36 commission upon request. The activity under this clause is
	177	+	37 not an interest under IC 7.1-5-9.
	178	+	38 (6) If the brewer's brewery manufactures more than ninety
	179	+	39 thousand (90,000) barrels of beer in a calendar year for sale or
	180	+	40 distribution within Indiana, the permit holder may own a portion
	181	+	41 of the corporate stock of another brewery that:
	182	+	42 (A) is located in the same county as the brewer's brewery;
	183	+	ES 205—LS 6917/DI 137 5
	184	+	1 (B) manufactures less than ninety thousand (90,000) barrels of
	185	+	2 beer in a calendar year; and
	186	+	3 (C) is the proprietor of a restaurant that operates under
	187	+	4 subdivision (5).
	188	+	5 (7) Provide complimentary samples of beer that are:
	189	+	6 (A) produced by the brewer; and
	190	+	7 (B) offered to consumers for consumption on the brewer's
	191	+	8 premises.
	192	+	9 (8) Own a portion of the corporate stock of a sports corporation
	193	+	10 that:
	194	+	11 (A) manages a minor league baseball stadium located in the
	195	+	12 same county as the brewer's brewery; and
	196	+	13 (B) holds a beer retailer's permit, a wine retailer's permit, or a
	197	+	14 liquor retailer's permit for a restaurant located in that stadium.
	198	+	15 (9) For beer described in IC 7.1-1-2-3(a)(4):
	199	+	16 (A) may allow transportation to and consumption of the beer
	200	+	17 on the licensed premises; and
	201	+	18 (B) may not sell, offer to sell, or allow sale of the beer on the
	202	+	19 licensed premises.
	203	+	ES 205—LS 6917/DI 137 6
	204	+	COMMITTEE REPORT
	205	+	Madam President: The Senate Committee on Public Policy, to which
	206	+	was referred Senate Bill No. 205, has had the same under consideration
	207	+	and begs leave to report the same back to the Senate with the
	208	+	recommendation that said bill be AMENDED as follows:
	209	+	Page 4, line 4, after "beer" delete "," and insert ".".
	210	+	Page 4, delete line 5.
	211	+	Page 4, line 6, delete "subdivision.".
	212	+	Page 4, line 6, delete ":".
	213	+	Page 4, line 7, delete "(i)".
	214	+	Page 4, line 9, delete "; or" and insert ".".
	215	+	Page 4, delete lines 10 through 12.
	216	+	Page 4, run in lines 4 through 13.
	217	+	Page 4, line 14, delete "manufactures,".
	218	+	Page 4, between lines 22 and 23, begin a new line double block
	219	+	indented and insert:
	220	+	"(R) Manufacture beer for another permit holder under
	221	+	this subdivision. Upon completion of manufacturing the
	222	+	beer, the product must be transported to the permit holder
	223	+	for which the beer was manufactured. To qualify under
	224	+	this clause:
140	225		(i) the permit holder for which the beer is manufactured
141	226		must have manufactured not less than forty (40) barrels
142	227		of beer produced from raw materials at the licensed
143	228		premises of the permit holder in the previous calendar
144	229		year; and
145	230		(ii) the number of barrels of beer that a permit holder
146	231		manufactures under this clause may not exceed the
147	232		number of barrels of beer that the permit holder
148	233		produced from raw materials at the licensed premises of
149	234		the permit holder in the same calendar year.
150	235		All records required by the federal Alcohol and Tobacco
151	236		Tax and Trade Bureau regarding the number of barrels of
152	237		beer produced from raw materials at the licensed premises
153	238		of a permit holder must be made available to the
154	239		commission upon request. The activity under this clause is
155		-	not an interest under IC 7.1-5-9.
156		-	(6) If the brewer's brewery manufactures more than ninety
157		-	thousand (90,000) barrels of beer in a calendar year for sale or
158		-	distribution within Indiana, the permit holder may own a portion
159		-	of the corporate stock of another brewery that:
160		-	(A) is located in the same county as the brewer's brewery;
161		-	(B) manufactures less than ninety thousand (90,000) barrels of
162		-	beer in a calendar year; and
163		-	(C) is the proprietor of a restaurant that operates under
164		-	subdivision (5).
165		-	SEA 205 5
166		-	(7) Provide complimentary samples of beer that are:
167		-	(A) produced by the brewer; and
168		-	(B) offered to consumers for consumption on the brewer's
169		-	premises.
170		-	(8) Own a portion of the corporate stock of a sports corporation
171		-	that:
172		-	(A) manages a minor league baseball stadium located in the
173		-	same county as the brewer's brewery; and
174		-	(B) holds a beer retailer's permit, a wine retailer's permit, or a
175		-	liquor retailer's permit for a restaurant located in that stadium.
176		-	(9) For beer described in IC 7.1-1-2-3(a)(4):
177		-	(A) may allow transportation to and consumption of the beer
178		-	on the licensed premises; and
179		-	(B) may not sell, offer to sell, or allow sale of the beer on the
180		-	licensed premises.
181		-	SEA 205 President of the Senate
182		-	President Pro Tempore
183		-	Speaker of the House of Representatives
184		-	Governor of the State of Indiana
185		-	Date: Time:
186		-	SEA 205
	240	+	not an interest under IC 7.1-5-9.".
	241	+	and when so amended that said bill do pass.
	242	+	(Reference is to SB 205 as introduced.)
	243	+	ES 205—LS 6917/DI 137 7
	244	+	ALTING, Chairperson
	245	+	Committee Vote: Yeas 8, Nays 0.
	246	+	_____
	247	+	COMMITTEE REPORT
	248	+	Mr. Speaker: Your Committee on Public Policy, to which was
	249	+	referred Senate Bill 205, has had the same under consideration and
	250	+	begs leave to report the same back to the House with the
	251	+	recommendation that said bill do pass.
	252	+	(Reference is to SB 205 as printed January 19, 2024.)
	253	+	MANNING
	254	+	Committee Vote: Yeas 12, Nays 0
	255	+	ES 205—LS 6917/DI 137