First Regular Session of the 124th General Assembly (2025) 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 2024 Regular Session of the General Assembly. HOUSE ENROLLED ACT No. 1053 AN ACT to amend the Indiana Code concerning state and local administration. Be it enacted by the General Assembly of the State of Indiana: SECTION 1. IC 4-30-2-4.3 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 4.3. "Lottery courier service" means a for profit service operated for the purpose of purchasing or facilitating the purchase of lottery tickets on behalf of persons and delivering or transmitting the tickets, or electronic images of the tickets, to the person in exchange for monetary compensation. SECTION 2. IC 4-30-3-7 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 7. The commission shall adopt rules under IC 4-22-2 governing the establishment, implementation, and operation of the lottery, including the following: (1) The type of lottery games to be conducted, except that: (A) the name of an elected official may not appear on a ticket or play slip of a lottery game, on a prize, or on an instrument used for the payment of prizes, unless the prize is in the form of a state warrant; and (B) coins or currency may not be dispensed from an electronic computer terminal or device used in a lottery game. (2) The sales price of tickets. (3) The number and size of prizes. (4) The method of selecting winning tickets. However, if a lottery HEA 1053 — CC 1 2 game involves a drawing, the drawing must be public and witnessed by an independent certified public accountant. The equipment used in the drawing shall be inspected before and after the drawing. (5) The manner of payment of prizes to holders of winning tickets. (6) The frequency of drawings of winning tickets. (7) The number and type of locations at which tickets may be purchased. (8) The method to be used in selling tickets. (9) The manner and amount of compensation of retailers. (10) The feasibility of using for a lottery game a terminal or device that may be operated solely by the player without the assistance of a retailer. (11) A system of internal audits. (12) The establishment of a code of ethics for officers and employees of the commission. (13) The bulk purchase of lottery products. (13) (14) Any other matters necessary or desirable for the efficient or economical operation of the lottery or for the convenience of the public. SECTION 3. IC 4-30-3-7.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 7.5. (a) A person who, without written authorization of the commission, operates a lottery courier service commits a Class A misdemeanor. (b) This section does not require the commission to: (1) authorize a lottery courier service; or (2) create a legal right to operate a lottery courier service. SECTION 4. IC 4-30-3-20, AS ADDED BY P.L.174-2022, SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 20. (a) This section does not apply to: (1) an activity specifically authorized by: (A) IC 4-29 or IC 4-29.5 (tribal gaming and tribal-state compact); (B) IC 4-31 (pari-mutuel wagering on horse races); (C) IC 4-33 (riverboat gambling); (D) IC 4-35 (gambling games at racetracks); or (E) IC 4-38 (sports wagering); (2) the purchase of a tangible lottery ticket for a lottery game from: (A) a retailer authorized to sell lottery tickets under IC 4-30-9; or HEA 1053 — CC 1 3 (B) the commission; or (3) a free: (A) interactive game; or (B) promotional game; offered by the commission. (b) Unless specifically granted authority by a statute passed by the general assembly, the commission and Indiana gaming commission shall not, independently or by public-private partnership, operate or authorize the use or operation of the following: (1) A lottery game operated through a video lottery terminal. (2) A video gaming terminal. (3) A lottery courier service. (3) (4) The sale of digital representations of: (A) casino-style games, including: (i) poker; (ii) roulette; (iii) slot machines; or (iv) blackjack; over the Internet; or (B) scratch-off games; or (C) draw games. SECTION 5. IC 4-30-3-22 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 22. The following are confidential for purposes of IC 5-14-3: (1) A record related to lottery ticket order history. (2) Lottery ticket inventory. (3) A record that, if disclosed, could impair or adversely impact the: (A) security, integrity, or fairness of a lottery game; or (B) security of lottery retailers. SECTION 6. IC 4-31-2.1-2.3 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 2.3. "ARCI model rules" means the most current version of model rules and standards, except as provided in section 2.6 of this chapter, including penalties and penalty classifications, that have been adopted by the Association of Racing Commissioners International. SECTION 7. IC 4-31-2.1-2.6 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 2.6. "ARCI uniform classification guidelines for foreign substances and recommended penalties HEA 1053 — CC 1 4 model rules" means the most current version of model rules and standards concerning foreign substances, including penalties and penalty classifications, that have been adopted by the Association of Racing Commissioners International. SECTION 8. IC 4-31-3-9, AS AMENDED BY P.L.93-2024, SECTION 27, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 9. Subject to section 14 of this chapter, the commission may: (1) adopt rules under IC 4-22-2 to implement this article, including rules that incorporate by reference the ARCI model rules and the ARCI uniform classification guidelines for foreign substances and recommended penalties model rules and rules that prescribe: (A) the forms of wagering that are permitted; (B) the number of races; (C) the procedures for wagering; (D) the wagering information to be provided to the public; (E) fees for the issuance and renewal of: (i) permits under IC 4-31-5; (ii) satellite facility licenses under IC 4-31-5.5; and (iii) licenses for racetrack personnel and racing participants under IC 4-31-6; (F) investigative fees; (G) fines and penalties; and (H) any other regulation that the commission determines is in the public interest in the conduct of recognized meetings and wagering on horse racing in Indiana; (2) appoint employees and fix their compensation, subject to the approval of the budget agency under IC 4-12-1-13; (3) enter into contracts necessary to implement this article; and (4) receive and consider recommendations from a development advisory committee established under IC 4-31-11. SECTION 9. IC 4-31-3-10, AS AMENDED BY P.L.217-2017, SECTION 41, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 10. (a) Before July 1, 2025, the commission shall appoint a director and an assistant director who serve serves at the pleasure of the commission. After June 30, 2025, the governor shall appoint a director, and a director appointed under this subsection shall serve at the pleasure of the governor. The director and the assistant director must have a background in the horse industry, a high level of management skills, and previous experience with pari-mutuel horse betting administration. HEA 1053 — CC 1 5 (b) The director and the assistant director shall: (1) attend all meetings of the commission; (2) keep a complete record of the commission's proceedings; (3) preserve at the commission's office all documents entrusted to the commission's care; and (4) perform other duties the commission prescribes; and (5) hire an assistant director. (c) The director may do the following: (1) Negotiate an interstate compact that enables party states to act jointly and cooperatively to create more uniform, effective, and efficient practices, programs, and rules concerning horse racing and pari-mutuel wagering on horse racing in the party states. (2) Represent Indiana on a commission to negotiate an interstate compact described in subdivision (1). SECTION 10. IC 4-31-3-11.5 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 11.5. The commission shall employ or contract for judges and stewards to attend each recognized meeting held under a permit issued under this article. A contracted judge or steward shall be considered an employee of the commission for the purpose of IC 4-6-2-1.5(a). The permit holder shall, in the manner prescribed by the rules of the commission, reimburse the commission for the salaries and other expenses of the judges and stewards who serve at the permit holder's racetrack. SECTION 11. IC 4-31-5-9, AS AMENDED BY P.L.165-2021, SECTION 45, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 9. (a) The commission shall determine the dates and (if the commission adopts a rule under subsection (c)) the number of racing days authorized under each recognized meeting permit. Except for racing at winterized tracks, a recognized meeting may not be conducted after December 10 of a calendar year. (b) Except as provided in subsection (c), the commission shall require at least two hundred eighty (280) but not more than three hundred thirty (330) total live racing days each calendar year combined at both racetracks, as follows: (1) At least one hundred sixty (160) but not more than one hundred eighty (180) live racing days must be for standardbreds to race at Hoosier Park. a licensed parimutuel horse racing track located in Madison County. (2) At least one hundred twenty (120) but not more than one hundred fifty (150) live racing days must be for horses that are: (A) mounted by jockeys; and (B) run on a course without jumps or obstacles; HEA 1053 — CC 1 6 to race at Indiana Grand. a licensed parimutuel horse racing track located in Shelby County. The requirements of this subsection are a continuing condition for maintaining the permit holder's permit. However, the requirements do not apply if the commission determines that the permit holder is prevented from conducting live horse racing as a result of a natural disaster or another event over which the permit holder has no control. (c) The commission may by rule adjust any of the following: (1) The total required number of live racing days under subsection (b). (2) The number of live racing days required under subsection (b)(1). (3) The number of live racing days required under subsection (b)(2). (d) A permit holder may not conduct more than fourteen (14) races on a particular racing day, unless authorized by the commission to conduct additional races. SECTION 12. IC 4-31-12-2, AS AMENDED BY P.L.34-2006, SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 2. (a) Except as permitted by the rules of the commission, a horse participating in a race may not carry in its body any foreign substance. (b) The commission shall adopt the rules the commission considers necessary to implement this section. Before adopting a rule with regard to permitting the use of any medication, the commission shall consider the ARCI model rules. approved by the Association of Racing Commissioners International. (c) In order to inform the racetrack patrons of those horses running with medication, the permit holder shall indicate in the racing program a horse that is racing with a medication permitted by the rules of the commission. SECTION 13. IC 4-31-13-2, AS AMENDED BY P.L.210-2013, SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 2. (a) The commission may adopt rules under IC 4-22-2 to delegate to the stewards and judges of racing meetings under the jurisdiction of the commission the power to conduct disciplinary hearings on behalf of the commission. The stewards and judges shall give at least twelve (12) hours notice of any such hearing. The stewards and judges, on behalf of the commission, may impose one (1) or more of the following sanctions against a licensee who violates this article or the rules or orders of the commission: (1) A civil penalty not to exceed five thousand dollars ($5,000). HEA 1053 — CC 1 7 (2) A temporary order or other immediate action in the nature of a summary suspension if a licensee's actions constitute an immediate danger to the public health, safety, or welfare. (3) Suspension of a license held by the licensee for not more than one (1) year. three (3) years. The suspension of a license under this subdivision is: (A) valid even though the suspension extends beyond the period of the racing meeting for which the stewards and judges have been appointed; and (B) effective at all other racing meetings under the jurisdiction of the commission. (4) A rule that a person must stay off the premises of one (1) or more permit holders if necessary in the public interest to maintain proper control over recognized meetings. (5) Referral of the matter to the commission for its consideration. However, at least two (2) of the stewards or judges at a racing meeting must concur in a suspension or civil penalty. (b) Unless a suspension of a license or the imposition of a civil penalty under this section is appealed by the person sanctioned not more than fifteen (15) days after being sanctioned, the suspension of a license or the imposition of a civil penalty under this section must occur within one hundred eighty (180) three hundred sixty-five (365) days after the date of the violation. (c) A suspension or civil penalty under this section may be appealed to the commission. Judges and stewards imposing sanctions under this section must prove the person's violation by a preponderance of the evidence. The commission shall adopt rules establishing procedures for appeals and stays of appeals. The commission shall conduct a hearing on an appeal filed under this section as provided in IC 4-21.5. SECTION 14. IC 4-33-2-14 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 14. "Occupational license" means a license: (1) issued by the commission under IC 4-33-8; and (2) that must be held by an individual described in IC 4-33-8-1.5. SECTION 15. IC 4-33-4-18, AS AMENDED BY P.L.170-2005, SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 18. (a) The state police department may assist the commission in conducting background investigations of applicants. The commission may forward all fingerprints required to be submitted by license applicants under IC 4-33 to the Federal Bureau of Investigation or any other agency for the purpose of screening HEA 1053 — CC 1 8 applicants. The commission shall reimburse the state police department for the costs incurred by the state police department as a result of the assistance. The commission shall make the payment from fees collected from applicants. (b) (a) The commission, through its gaming agents, shall conduct background criminal history investigations of occupational license applicants Costs incurred conducting the investigations must be paid from fees collected from applicants. and occupational licensees under IC 4-33-8-1.5 for purposes of carrying out: (1) the commission's statutory powers and responsibilities; and (2) rules adopted; under this article. (b) For purposes of carrying out the commission's statutory powers and responsibilities, the commission shall require an applicant or licensee described in subsection (a) to submit the fingerprints of the applicant or licensee for review by the state police department and the Federal Bureau of Investigation: (1) for a criminal history record check; and (2) in the form and manner required by the state police department and the Federal Bureau of Investigation. (c) The state police department shall provide to the commission the results of each criminal history record check requested by the commission under: (1) this section; and (2) rules adopted under this article. (d) The state police department may charge the commission a fee for a criminal history record check required under this section. The commission shall pay a fee charged under this subsection from money received from fees collected from occupational license applicants or licensees. SECTION 16. IC 4-33-8-1.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 1.5. An individual who meets any of the following descriptions, or who holds a position that meets the equivalent of any of the following descriptions, is required to hold an occupational license: (1) An individual who is determined to require an occupational license under: (A) 68 IAC 2-2; (B) 68 IAC 2-3; or (C) 68 IAC 27-2. HEA 1053 — CC 1 9 (2) A key person, as defined by the commission. (3) A substantial owner, as defined by the commission. (4) An employee, agent, or affiliate of a gaming operation who: (A) is not described in subdivisions (1) through (3); (B) has applied for or holds a license issued by the commission under IC 4-33-6, IC 4-33-7, IC 4-35, or IC 4-38; and (C) the commission deems necessary to ensure compliance with this article and rules adopted under this article. SECTION 17. IC 4-33-8-6 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 6. In accordance with IC 4-33-4-18, an applicant for an occupational license must submit with the application two (2) sets of the applicant's fingerprints. The applicant must submit the fingerprints on forms provided by the commission. The commission shall charge each applicant a fee set by the state police department to defray the costs associated with the search and classification of the applicant's fingerprints. SECTION 18. IC 7.1-3-15-3 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 3. (a) The holder of a wine dealer's permit shall be entitled to purchase wine only from a permittee who is authorized to sell to a wine dealer under this title. A wine dealer shall be entitled to sell wine for consumption off the licensed premises only and not by the drink. (b) A wine dealer shall be entitled to sell wine in permissible containers in a quantity of not more than three (3) standard cases, as determined under the rules of the commission, in a single transaction. However, a wine dealer who is licensed under IC 7.1-3-10-4 may possess wine and sell it at retail in its original package to a customer only for consumption off the licensed premises. (c) Unless a wine dealer is a grocery store or drug store, a wine dealer may not sell or deliver alcoholic beverages or any other item through a window in the licensed premises to a patron who is outside the licensed premises. A wine dealer that is a grocery store or drug store may sell any item except alcoholic beverages through a window in the licensed premises to a person who is outside the licensed premises. (d) However, A wine dealer may deliver wine as follows: (1) Except as provided in subdivision (2), only in permissible containers to a customer's: (A) residence; or (B) office. HEA 1053 — CC 1 10 (2) In the case of a wine dealer who is licensed under IC 7.1-3-10-4, may deliver wine only in permissible containers to a customer's: (A) residence; (B) office; or (C) designated location. This A wine delivery may only be performed by the permit holder or an employee who holds an employee permit. The permit holder shall maintain a written record of each delivery for at least one (1) year that shows the customer's name, location of delivery, and quantity sold. SECTION 19. IC 7.1-3-18-9, AS AMENDED BY P.L.220-2023, SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 9. (a) The commission may issue an employee's permit to a person who desires to act as: (1) a clerk in a package liquor store; (2) an employee who serves wine at a farm winery; (3) a bartender, waiter, waitress, or manager in a retail establishment, excepting dining car and boat employees; or (4) an employee of a dealer licensed under IC 7.1-3-5-3, or IC 7.1-3-10-7, or IC 7.1-3-15-3 to deliver beer, or liquor, or wine. (b) A permit authorized by this section is conditioned upon the compliance by the holder with reasonable rules relating to the permit which the commission may prescribe from time to time. (c) A permit issued under this section entitles its holder to work for any lawful employer. However, a person may work without an employee's permit for thirty (30) days from the date shown on a receipt for a cashier's check or money order payable to the commission for that person's employee's permit application. (d) A person who, for a package liquor store or retail establishment, is: (1) the sole proprietor; (2) a partner, a general partner, or a limited partner in a partnership or limited partnership that owns the business establishment; (3) a member of a limited liability company that owns the business establishment; or (4) a stockholder in a corporation that owns the business establishment; is not required to obtain an employee's permit in order to perform any of the acts listed in subsection (a). (e) An applicant may declare on the application form that the HEA 1053 — CC 1 11 applicant will use the employee's permit only to perform volunteer service that benefits a nonprofit organization. It is unlawful for an applicant who makes a declaration under this subsection to use an employee's permit for any purpose other than to perform volunteer service that benefits a nonprofit organization. (f) The commission may not issue an employee's permit to an applicant while the applicant is serving a sentence for a conviction for operating while intoxicated, including any term of probation or parole. (g) The commission may not issue an employee's permit to an applicant who has two (2) unrelated convictions for operating while intoxicated if: (1) the first conviction occurred less than ten (10) years before the date of the applicant's application for the permit; and (2) the applicant completed the sentence for the second conviction, including any term of probation or parole, less than two (2) years before the date of the applicant's application for the permit. (h) If an applicant for an employee's permit has at least three (3) unrelated convictions for operating while intoxicated in the ten (10) years immediately preceding the date of the applicant's application for the permit, the commission may not grant the issuance of the permit. If, in the ten (10) years immediately preceding the date of the applicant's application the applicant has: (1) one (1) conviction for operating while intoxicated, and the applicant is not subject to subsection (f); or (2) two (2) unrelated convictions for operating while intoxicated, and the applicant is not subject to subsection (f) or (g); the commission may grant or deny the issuance of a permit. (i) Except as provided under section 9.5 of this chapter, the commission shall revoke a permit issued to an employee under this section if: (1) the employee is convicted of a Class B misdemeanor for violating IC 7.1-5-10-15(a); or (2) the employee is convicted of operating while intoxicated after the issuance of the permit. The commission may revoke a permit issued to an employee under this section for any violation of this title or the rules adopted by the commission. SECTION 20. IC 7.1-3-20-16.8, AS AMENDED BY P.L.145-2024, SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 16.8. (a) A permit that is authorized by this section may be issued without regard to the quota provisions of HEA 1053 — CC 1 12 IC 7.1-3-22. (b) Except as provided in section 16.3 of this chapter, the commission may issue not more than four (4) new three-way permits to sell alcoholic beverages for on-premises consumption to applicants in each of the following municipalities: (1) Whitestown. (2) Lebanon. (3) Zionsville. (4) Westfield. (5) Carmel. (6) Fishers. (7) Noblesville. (c) The following apply to permits issued under subsection (b): (1) An applicant for a permit under subsection (b) must be a proprietor, as owner or lessee, or both, of a restaurant located within an economic development area, an area needing redevelopment, or a redevelopment district as established under IC 36-7-14 in a municipality's: (A) downtown redevelopment district; or (B) downtown economic revitalization area. (2) The cost of an initial permit is forty thousand dollars ($40,000). (3) The total number of active permits issued under subsection (b) may not exceed twenty-four (24) permits at any time. If any of the permits issued under subsection (b) are revoked or not renewed, the commission may issue only enough new permits to bring the total number of permits to twenty-four (24) active permits, with not more than four (4) in each municipality listed in subsection (b)(1) through (b)(6). (4) The municipality may adopt an ordinance under IC 7.1-3-19-17 requiring a permit holder to enter into a formal written commitment as a condition of eligibility for a permit. As set forth in IC 7.1-3-19-17(b), a formal written commitment is binding on the permit holder and on any lessee or proprietor of the permit premises. (5) Notwithstanding IC 7.1-3-1-3.5 and IC 7.1-3-1.1, if business operations cease at the permit premises for more than six (6) months, the permit shall revert to the commission and the permit holder is not entitled to any refund or other compensation. (6) Except as provided in subdivision (8), the ownership of a permit may not be transferred. (7) A permit may not be transferred from the premises for which HEA 1053 — CC 1 13 the permit was issued. (8) If the area in which the permit premises is located is no longer designated an economic development area, an area needing redevelopment, or a redevelopment district, a permit issued under this section may be renewed, and the ownership of the permit may be transferred, but the permit may not be transferred from the permit premises. (d) Except as provided in section 16.3 of this chapter, in addition to the permits issued to the town of Whitestown under subsection (c), the commission may issue to the town of Whitestown not more than: (1) three (3) new three-way permits; and (2) three (3) new two-way permits; under this subsection. (e) The following apply to permits issued under subsection (d): (1) An applicant for a permit under subsection (d)(1) or (d)(2) must be a proprietor, an owner or lessee, or both, of a restaurant located within an economic development area, an area needing redevelopment, or a redevelopment district as established under IC 36-7-14 in a municipality's: (A) downtown redevelopment district; or (B) downtown economic revitalization area. (2) The cost of an initial permit is forty thousand dollars ($40,000). (3) The total number of active permits issued under subsection (d) may not exceed the six (6) permits allocated by permit type, as set forth in that subsection. (4) The municipality may adopt an ordinance under IC 7.1-3-19-17 requiring a permit holder to enter into a formal written commitment as a condition of eligibility for a permit. As set forth in IC 7.1-3-19-17(b), a formal written commitment is binding on the permit holder and on any lessee or proprietor of the permit premises. (5) Notwithstanding IC 7.1-3-1.1, if business operations cease at the permit premises for more than six (6) months, the permit shall revert to the commission and the permit holder is not entitled to any refund or other compensation. (6) Except as provided in subdivision (8), the ownership of a permit may not be transferred. (7) A permit may not be transferred from the premises for which the permit was issued. (8) If the area in which the permit issued to a premises under subsection (d)(1) or (d)(2) is located is no longer designated an HEA 1053 — CC 1 14 economic development area, an area needing redevelopment, or a redevelopment district, a permit issued under this section may be renewed, and the ownership of the permit may be transferred, but the permit may not be transferred from the permit premises. (f) Except as provided in section 16.3 of this chapter, in addition to the permits issued to the city of Noblesville under subsection (c), the commission may issue to the city of Noblesville not more than ten (10) new three-way permits under this subsection. The new three-way permits may be issued as follows: (1) Three (3) new three-way permits in 2024. (2) Three (3) new three-way permits in 2025. (3) Four (4) new three-way permits in 2026. If the commission does not issue the amount of three-way permits allowed in subdivisions (1) through (3) in that year, any unissued permits will roll over and may be issued in a subsequent year. (g) The following apply to permits issued under subsection (f): (1) An applicant for a permit under subsection (f) must be a proprietor, an owner or lessee, or both, of a restaurant located within an economic development area, an area needing redevelopment, or a redevelopment district as established under IC 36-7-14 in a municipality's: (A) downtown redevelopment district; or (B) downtown economic revitalization area. (2) The cost of an initial permit is forty thousand dollars ($40,000). (3) The total number of active permits issued under subsection (f) may not exceed the ten (10) new three-way permits, as set forth in that subsection. (4) The municipality may adopt an ordinance under IC 7.1-3-19-17 requiring a permit holder to enter into a formal written commitment as a condition of eligibility for a permit. As set forth in IC 7.1-3-19-17(b), a formal written commitment is binding on the permit holder and on any lessee or proprietor of the permit premises. (5) Notwithstanding IC 7.1-3-1.1, if business operations cease at the permit premises for more than six (6) months, the permit shall revert to the commission and the permit holder is not entitled to any refund or other compensation. (6) Except as provided in subdivision (8), the ownership of a permit may not be transferred. (7) A permit may not be transferred from the premises for which the permit was issued. HEA 1053 — CC 1 15 (8) If the area in which the permit issued to a premises under subsection (f) is located is no longer designated an economic development area, an area needing redevelopment, or a redevelopment district, a permit issued under this section may be renewed, and the ownership of the permit may be transferred, but the permit may not be transferred from the permit premises. (h) Except as provided in section 16.3 of this chapter, the commission may issue to the city of Delphi not more than two (2) new three-way permits under this subsection. (i) The following apply to permits issued under subsection (h): (1) An applicant for a permit under subsection (h) must be a proprietor, an owner or lessee, or both, of a restaurant located within an economic development area, an area needing redevelopment, or a redevelopment district as established under IC 36-7-14 in a municipality's: (A) downtown redevelopment district; or (B) downtown economic revitalization area. (2) The cost of an initial permit is forty thousand dollars ($40,000). (3) The total number of active permits issued under subsection (h) may not exceed the two (2) new three-way permits, as set forth in that subsection. (4) The municipality may adopt an ordinance under IC 7.1-3-19-17 requiring a permit holder to enter into a formal written commitment as a condition of eligibility for a permit. As set forth in IC 7.1-3-19-17(b), a formal written commitment is binding on the permit holder and on any lessee or proprietor of the permit premises. (5) Notwithstanding IC 7.1-3-1.1, if business operations cease at the permit premises for more than six (6) months, the permit shall revert to the commission and the permit holder is not entitled to any refund or other compensation. (6) Except as provided in subdivision (8), the ownership of a permit may not be transferred. (7) A permit may not be transferred from the premises for which the permit was issued. (8) If the area in which the permit issued to a premises under subsection (h) is located is no longer designated an economic development area, an area needing redevelopment, or a redevelopment district, a permit issued under this section may be renewed, and the ownership of the permit may be transferred, but the permit may not be transferred from the permit premises. HEA 1053 — CC 1 16 (j) Except as provided in section 16.3 of this chapter, the commission may issue to the city of Warsaw not more than three (3) new three-way permits under this subsection. (k) The following apply to permits issued under subsection (j): (1) An applicant for a permit under subsection (j) must be a proprietor, an owner or lessee, or both, of a restaurant located within an economic development area, an area needing redevelopment, or a redevelopment district as established under IC 36-7-14 in a municipality's: (A) downtown redevelopment district; or (B) downtown economic revitalization area. (2) The cost of an initial permit is forty thousand dollars ($40,000). (3) The total number of active permits issued under subsection (j) may not exceed the three (3) new three-way permits, as set forth in that subsection. (4) The municipality may adopt an ordinance under IC 7.1-3-19-17 requiring a permit holder to enter into a formal written commitment as a condition of eligibility for a permit. As set forth in IC 7.1-3-19-17(b), a formal written commitment is binding on the permit holder and on any lessee or proprietor of the permit premises. (5) Notwithstanding IC 7.1-3-1.1, if business operations cease at the permit premises for more than six (6) months, the permit shall revert to the commission and the permit holder is not entitled to any refund or other compensation. (6) Except as provided in subdivision (8), the ownership of a permit may not be transferred. (7) A permit may not be transferred from the premises for which the permit was issued. (8) If the area in which the permit issued to a premises under subsection (j) is located is no longer designated an economic development area, an area needing redevelopment, or a redevelopment district, a permit issued under this section may be renewed, and the ownership of the permit may be transferred, but the permit may not be transferred from the permit premises. (l) Except as provided in section 16.3 of this chapter, the commission may issue to the town of Syracuse not more than one (1) new three-way permit under this subsection. (m) The following apply to a permit issued under subsection (l): (1) An applicant for a permit under subsection (l) must be a HEA 1053 — CC 1 17 proprietor, an owner or lessee, or both, of a restaurant located within an economic development area, an area needing redevelopment, or a redevelopment district as established under IC 36-7-14 in a municipality's: (A) downtown redevelopment district; or (B) downtown economic revitalization area. (2) The cost of an initial permit is forty thousand dollars ($40,000). (3) The total number of active permits issued under subsection (l) may not exceed the one (1) new three-way permit, as set forth in that subsection. (4) The municipality may adopt an ordinance under IC 7.1-3-19-17 requiring a permit holder to enter into a formal written commitment as a condition of eligibility for a permit. As set forth in IC 7.1-3-19-17(b), a formal written commitment is binding on the permit holder and on any lessee or proprietor of the permit premises. (5) Notwithstanding IC 7.1-3-1.1, if business operations cease at the permit premises for more than six (6) months, the permit shall revert to the commission and the permit holder is not entitled to any refund or other compensation. (6) Except as provided in subdivision (8), the ownership of a permit may not be transferred. (7) A permit may not be transferred from the premises for which the permit was issued. (8) If the area in which the permit issued to a premises under subsection (l) is located is no longer designated an economic development area, an area needing redevelopment, or a redevelopment district, a permit issued under this section may be renewed, and the ownership of the permit may be transferred, but the permit may not be transferred from the permit premises. SECTION 21. IC 7.1-3-23-6 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 6. Revocation of Permits: Procedure. The commission shall give at least ten (10) three (3) business days notice to the holder of the permit proposed to be revoked. The notice shall inform the holder of the time and place of the hearing to be held in regard to the proposed revocation. Unless otherwise provided in this title, all further procedures with reference to the revocation of a permit shall be prescribed by rule and regulation of the commission. SECTION 22. IC 7.1-3-27-3, AS AMENDED BY P.L.220-2023, HEA 1053 — CC 1 18 SECTION 12, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 3. (a) An artisan distiller may produce not more than twenty thousand (20,000) thirty thousand (30,000) gallons of liquor in any calendar year. Liquor produced by an artisan distiller that is sold through a wholesaler licensed under IC 7.1-3-8 may not be counted toward the gallonage limit. (b) An artisan distiller who knowingly or intentionally violates this section commits a Class B misdemeanor. SECTION 23. IC 7.1-3-27-8, AS AMENDED BY P.L.194-2021, SECTION 59, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 8. (a) The holder of an artisan distiller's permit may do only the following: (1) Manufacture liquor, including blending liquor purchased from another manufacturer with liquor the artisan distiller manufactures under section 11 of this chapter. (2) Bottle liquor manufactured by the artisan distiller. (3) Insert liquor manufactured by the artisan distiller into a container. (4) Store liquor manufactured by the artisan distiller, including at a facility located within ten (10) miles of the artisan distiller's distillery. (5) Transport, sell, and deliver liquor manufactured by the artisan distiller to: (A) places outside Indiana; or (B) the holder of a liquor wholesaler's permit under IC 7.1-3-8. (6) Sell liquor manufactured by the artisan distiller to consumers by the drink, bottle, container, or case from the licensed premises of the distillery where the liquor was manufactured. Notwithstanding IC 7.1-1-3-20, the licensed premises may include the distillery parking lot or an area adjacent to the artisan distillery. The parking lot or adjacent area may only be used for the purpose of conveying alcoholic beverages and other nonalcoholic items to a customer subject to section 8.1 of this chapter and may not be used for point of sale purposes or any other purpose. (7) Serve complimentary samples of the liquor manufactured by the artisan distiller to consumers on the premises of the distillery where the liquor was manufactured. (8) Sell liquor as authorized by this section for carryout on Sunday in a quantity at any one (1) time of not more than four and five-tenths (4.5) liters. (9) With the approval of the commission, participate: HEA 1053 — CC 1 19 (A) individually; or (B) with other permit holders under this chapter, holders of farm winery permits, holders of brewer's permits issued under IC 7.1-3-2-2(b), or any combination of holders described in this clause; in a trade show or an exposition at which products of each permit holder participant are displayed, promoted, and sold. All of the permit holders may occupy the same tent, structure, or building. The commission may not grant to a holder of a permit under this chapter approval under this subdivision to participate in a trade show or exposition for more than forty-five (45) days in a calendar year. (10) Be the proprietor of a restaurant that is not subject to the minimum gross food sales or the minimum projected food sales set forth in 905 IAC 1-41-2 and the gross retail income requirements to sell carryout under IC 7.1-3-20-9.5. A holder is entitled to conduct the following activities: (A) Hold a beer retailer's permit, a wine retailer's permit, or a liquor retailer's permit for a restaurant. (B) Transfer liquor directly from the artisan distillery to a restaurant that the artisan distiller has an interest in by means of: (i) bottles; (ii) bulk containers; or (iii) a continuous flow system. (C) Install a window between the artisan distillery and an adjacent restaurant that allows the public and the holder of the permit to view both premises. (D) Install a doorway or other opening between the artisan distillery and an adjacent restaurant that provides the public and the holder of the permit with access to both the artisan distillery and restaurant. (11) A holder that does not distribute through an Indiana liquor wholesaler is entitled under the artisan distiller's permit to sell and deliver to a person holding a liquor retailer or liquor dealer permit under this title a total of not more than one thousand (1,000) two thousand (2,000) gallons of the artisan distillery's liquor in a calendar year, if the artisan distiller has not sold in Indiana more than nine thousand (9,000) ten thousand (10,000) gallons the previous calendar year. A holder that sells and delivers under this subdivision shall comply with all provisions applicable to a wholesaler in 905 IAC 1-5.1, 905 IAC 1-5.2, 905 IAC 1-21, 905 HEA 1053 — CC 1 20 IAC 1-31, and 905 IAC 1-32.1. (12) A holder must annually submit to the commission copies of its Indiana and federal excise tax returns. (13) Manufacture liquor at the licensed premises for another holder of an artisan distiller's permit. Upon completion of the manufacturing of the liquor for another permit holder under this subdivision, the product must be transported to the permit holder for which the liquor was manufactured. To qualify under this subdivision: (A) the permit holder for which the liquor is manufactured must have manufactured not less than forty (40) gallons of liquor produced from raw materials at the permit holder's licensed premises in the previous calendar year; and (B) the total number of gallons of liquor that a permit holder manufactures under this subdivision may not exceed the number of gallons of liquor the permit holder produced from raw materials at the permit holder's licensed premises in the same calendar year. All records required by the federal Alcohol and Tobacco Tax and Trade Bureau regarding the number of gallons of liquor produced from raw materials at the licensed premises of a permit holder must be available to the commission upon request. The activity under this subdivision is not an interest under IC 7.1-5-9. (b) The holder of an artisan distiller's permit who provides samples or sells liquor by the glass must furnish the minimum food requirements prescribed by the commission. (c) A storage facility used by an artisan distiller under subsection (a)(4) must conform with federal laws, rules, and regulations. An artisan distiller may transfer liquor from a separate storage facility back to the artisan distillery. An artisan distiller may sell or transfer liquor directly to a liquor wholesaler from a storage facility that is separate from the artisan distillery. An artisan distiller may not sell or transfer liquor from a storage facility to any other permittee or a consumer. The artisan distiller shall maintain an adequate written record of the liquor transferred: (1) between the artisan distillery and the storage facility; and (2) from the storage facility to the liquor wholesaler. (d) The holder of an artisan distiller's permit may transport liquor to and from a brewery located within the same county for the purposes of carbonating and canning by the brewery. The activity under this subsection is not an interest under IC 7.1-5-9. HEA 1053 — CC 1 21 (e) An artisan distiller who knowingly or intentionally violates this section commits a Class B misdemeanor. SECTION 24. IC 7.1-3-31-12, AS ADDED BY P.L.167-2023, SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 12. (a) A designated permittee or vendor within the refreshment area may allow a person to exit the designated permittee's or vendor's licensed premises with not more than two (2) open containers of an alcoholic beverage at a time. The contents of an open container may not exceed the following: (1) Beer or flavored malt beverage of not more than sixteen (16) ounces. (2) Wine, cider, or hard seltzer of not more than twelve (12) ounces. (3) A mixed drink of not more than ten (10) ounces containing not more than two (2) ounces of liquor. (b) A municipality may not require a designated permittee or vendor to purchase containers for alcoholic beverages from a certain vendor. SECTION 25. IC 25-38.1-4-5.5, AS AMENDED BY P.L.9-2014, SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 5.5. (a) Each person who provides veterinary medical services shall maintain medical records, as defined by rules adopted by the board. (b) Veterinary medical records include the following: (1) Written records and notes, radiographs, sonographic images, video recordings, photographs or other images, and laboratory reports. (2) Other information received as the result of consultation. (3) Identification of any designated agent of the owner for the purpose of authorizing veterinary medical or animal health care decisions. (4) Any authorizations, releases, waivers, or other related documents. (c) The client is entitled to a copy or summary of the veterinary medical records. A veterinarian may charge a reasonable fee for copying or summarizing the requested veterinary medical record. The veterinarian may require that the request be in writing. (d) Except as provided in subsections (e) and (f) or upon written authorization of the client, an animal's veterinary medical record and medical condition is confidential and may not be: (1) furnished to; or (2) discussed with; HEA 1053 — CC 1 22 any person other than the client or other veterinarians involved in the care or treatment of the animal. (e) An animal's veterinary medical records and medical condition must be furnished within five (5) business days without written client authorization under the following circumstances: (1) Access to the records is specifically required by a state or federal statute. (2) An order by a court with jurisdiction in a civil or criminal action upon the court's issuance of a subpoena and notice to the client or the client's legal representative. (3) As part of an inspection or investigation conducted by the board or an agent of the board. (4) As part of a request from a regulatory or health authority, physician, or veterinarian: (A) to verify a rabies vaccination of an animal; or (B) to investigate a threat to human or animal health, or for the protection of animal or public health and welfare. (5) As a part of an animal cruelty report and associated applicable records that are part of an abuse investigation by law enforcement or a governmental agency. (6) To a law enforcement agency as part of a criminal investigation. (7) To the Indiana horse racing commission as part of an investigation in which a horse under the care, control, or ownership of a licensee (as defined in IC 4-31-2.1-19) has been treated by the veterinarian or a member of the veterinarian's staff. (f) An animal's veterinary medical records and medical condition may be furnished without written client authorization under the following circumstances: (1) To the School of Veterinary Medicine at Purdue University, the animal disease diagnostic laboratory, or a state agency or commission. However, an animal's veterinary medical records remain confidential unless the information is disclosed in a manner allowed under this section. (2) Veterinary medical records that are released by the board of animal health when in the judgment of the state veterinarian the disclosure is necessary or helpful in advancing animal health or protecting public health. (3) For statistical and scientific research, if the information is abstracted in a way as to protect the identity of the animal and the client. HEA 1053 — CC 1 23 (g) An animal's veterinary medical records must be kept and maintained by the veterinarian for at least three (3) years after the veterinarian's last encounter with the animal. SECTION 26. IC 35-52-4-7.7 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 7.7. IC 4-30-3-7.5 defines a crime concerning the lottery. SECTION 27. An emergency is declared for this act. HEA 1053 — CC 1 Speaker of the House of Representatives President of the Senate President Pro Tempore Governor of the State of Indiana Date: Time: HEA 1053 — CC 1