Introduced Version HOUSE BILL No. 1276 _____ DIGEST OF INTRODUCED BILL Citations Affected: IC 7.1-1-3; IC 7.1-3; IC 7.1-5; IC 7.1-7; IC 35-52-7-97. Synopsis: Various alcoholic beverage and tobacco matters. Makes the following changes: (1) Requires a permittee to obtain written permission from the appropriate local or state agency to locate a restaurant or hotel patio or terrace in the public right-of-way. (2) Allows a minor to be in a small brewery and the brewery's restaurant, if accompanied by an adult. (3) Allows the holder of a supplemental caterer's permit to obtain a limited tobacco certificate and cigar event endorsement to sell cigars at catered events. (4) Establishes requirements regarding permittee donations of alcoholic beverages to qualified organizations who are permittees conducting an event. (5) Makes it a Class C misdemeanor to sell a nicotine analogue. (6) Provides that if a tobacco certificate holder (holder) sells or distributes tobacco products at a location where criminal conduct occurs involving illegal substances or contraband, the cost of disposal of the substances or contraband may be part of the sanctions imposed on the holder. Provides that the alcohol and tobacco commission may issue a three way permit: (1) to a theater within the historic district of a city with a certain population; and (2) that is not subject to the quota. Effective: July 1, 2025. Manning January 13, 2025, read first time and referred to Committee on Public Policy. 2025 IN 1276—LS 7030/DI 87 Introduced 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 BILL No. 1276 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 7.1-1-3-9.2 IS ADDED TO THE INDIANA CODE 2 AS NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 3 1, 2025]: Sec. 9.2. "Cigar" has the meaning set forth in 4 IC 6-7-2-0.3. 5 SECTION 2. IC 7.1-1-3-9.3 IS ADDED TO THE INDIANA CODE 6 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 7 1, 2025]: Sec. 9.3. "Cigar event endorsement" means an 8 authorization issued by the commission that allows the holder of a: 9 (1) supplemental caterer's permit issued under IC 7.1-3-9.5; 10 and 11 (2) limited tobacco certificate issued under IC 7.1-3-18.5-1.5; 12 to display, promote, and sell cigars at retail at a catered event. 13 SECTION 3. IC 7.1-3-3-5, AS AMENDED BY P.L.153-2015, 14 SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE 15 JULY 1, 2025]: Sec. 5. (a) The holder of a beer wholesaler's permit 16 may purchase and import from the primary source of supply, possess, 17 and sell at wholesale, beer and flavored malt beverages manufactured 2025 IN 1276—LS 7030/DI 87 2 1 within or without this state. 2 (b) A beer wholesaler permittee may possess, transport, sell, and 3 deliver beer to: 4 (1) another beer wholesaler authorized by the brewer to sell the 5 brand purchased; 6 (2) an employee; 7 (3) a holder of a beer retailer's permit, beer dealer's permit, 8 temporary beer permit, dining car permit, boat permit, airplane 9 permit, or supplemental caterer's permit; and 10 (4) a qualified organization for: 11 (A) an allowable event to which under IC 7.1-3-6.1; applies; 12 or 13 (B) a charity auction to which under IC 7.1-3-6.2; applies; or 14 (C) an event under IC 7.1-3-6.3; 15 located within this state. The sale, donation to a qualified organization, 16 transportation, and delivery of beer shall be made only from inventory 17 that has been located on the wholesaler's premises before the time of 18 invoicing and delivery. 19 (c) The beer wholesaler's bona fide regular employees may purchase 20 beer from the wholesaler in: 21 (1) bottles, cans, or any other type of permissible containers in an 22 amount not to exceed forty-eight (48) pints; or 23 (2) one (1) keg; 24 at any one (1) time. 25 (d) The importation, transportation, possession, sale, and delivery 26 of beer shall be subject to the rules of the commission and subject to 27 the same restrictions provided in this title for a person holding a 28 brewer's permit. 29 (e) The holder of a beer wholesaler's permit may purchase, import, 30 possess, transport, sell, and deliver any commodity listed in 31 IC 7.1-3-10-5, unless prohibited by this title. However, a beer 32 wholesaler may deliver flavored malt beverages only to the holder of 33 one (1) of the following permits: 34 (1) A beer wholesaler or wine wholesaler permit, if the wholesaler 35 is authorized by the primary source of supply to sell the brand of 36 flavored malt beverage purchased. 37 (2) A wine retailer's permit, wine dealer's permit, temporary wine 38 permit, dining car wine permit, boat permit, airplane permit, or 39 supplemental caterer's permit. 40 (f) A beer wholesaler may: 41 (1) store beer for an out-of-state brewer described in IC 7.1-3-2-9 42 and deliver the stored beer to another beer wholesaler that the 2025 IN 1276—LS 7030/DI 87 3 1 out-of-state brewer authorizes to sell the beer; 2 (2) perform all necessary accounting and auditing functions 3 associated with the services described in subdivision (1); and 4 (3) receive a fee from an out-of-state brewer for the services 5 described in subdivisions (1) through (2). 6 SECTION 4. IC 7.1-3-4-6.5 IS ADDED TO THE INDIANA CODE 7 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 8 1, 2025]: Sec. 6.5. A beer retailer may sell, donate, transport, and 9 deliver beer to a qualified organization for: 10 (1) an allowable event under IC 7.1-3-6.1; 11 (2) a charity auction under IC 7.1-3-6.2; or 12 (3) an event under IC 7.1-3-6.3. 13 SECTION 5. IC 7.1-3-5-3.5 IS ADDED TO THE INDIANA CODE 14 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 15 1, 2025]: Sec. 3.5. A beer dealer may sell, donate, transport, and 16 deliver beer to a qualified organization for: 17 (1) an allowable event under IC 7.1-3-6.1; 18 (2) a charity auction under IC 7.1-3-6.2; or 19 (3) an event under IC 7.1-3-6.3. 20 SECTION 6. IC 7.1-3-6.1-2, AS AMENDED BY P.L.58-2019, 21 SECTION 24, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE 22 JULY 1, 2025]: Sec. 2. As used in this chapter, "qualified organization" 23 has the meaning set forth in IC 4-32.3-2-31. For purposes of this 24 chapter, a qualified organization may also be a permittee. 25 SECTION 7. IC 7.1-3-6.1-4, AS ADDED BY P.L.153-2015, 26 SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE 27 JULY 1, 2025]: Sec. 4. (a) A qualified organization may give away as 28 a prize for an allowable event an alcoholic beverage that is: 29 (1) purchased by or donated to the qualified organization by a 30 permittee or person described in section 5 of this chapter; 31 (2) in sealed bottles or cases; and 32 (3) provided for consumption off the premises only. 33 (b) A donation: 34 (1) from a permittee; and 35 (2) to a qualified organization that is a permittee; 36 is subject to the requirements set forth in IC 7.1-3-6.3. 37 SECTION 8. IC 7.1-3-6.2-1, AS AMENDED BY P.L.58-2019, 38 SECTION 26, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE 39 JULY 1, 2025]: Sec. 1. As used in this chapter, "qualified organization" 40 has the meaning set forth in IC 4-32.3-2-31. For purposes of this 41 chapter, a qualified organization may also be a permittee. 42 SECTION 9. IC 7.1-3-6.2-3, AS ADDED BY P.L.153-2015, 2025 IN 1276—LS 7030/DI 87 4 1 SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE 2 JULY 1, 2025]: Sec. 3. (a) A qualified organization may sell at auction 3 an alcoholic beverage that is: 4 (1) purchased from or received as a donation from a permittee or 5 person described in section 5 of this chapter; 6 (2) in sealed bottles or cases; and 7 (3) for consumption off the premises only. 8 (b) A donation: 9 (1) from a permittee; and 10 (2) to a qualified organization that is a permittee; 11 is subject to the requirements set forth in IC 7.1-3-6.3. 12 SECTION 10. IC 7.1-3-6.3 IS ADDED TO THE INDIANA CODE 13 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE 14 JULY 1, 2025]: 15 Chapter 6.3. Permittee Donations to Certain Qualified 16 Organizations 17 Sec. 1. This chapter applies to an event held by a qualified 18 organization: 19 (1) under: 20 (A) IC 7.1-3-6.1, at which donated alcoholic beverages are 21 awarded as prizes; or 22 (B) IC 7.1-3-6.2, at which donated alcoholic beverages are 23 auctioned off; 24 for consumption off the premises; or 25 (2) at which alcoholic beverages that are donated to the 26 qualified organization are served and consumed on the 27 premises during the event. 28 Sec. 2. As used in this chapter, "permittee" means a person 29 listed in IC 7.1-3-6.1-5(1). 30 Sec. 3. As used in this chapter, "qualified organization" has the 31 meaning set forth in IC 4-32.3-2-31. For purposes of this chapter, 32 a qualified organization may also be a permittee. 33 Sec. 4. A qualified organization may serve alcoholic beverages 34 for consumption on the premises during an event that are: 35 (1) purchased by or donated to the qualified organization by: 36 (A) a permittee; or 37 (B) a person that is not a permittee; and 38 (2) in sealed bottles or cases. 39 Sec. 5. The following restrictions apply to an event held by a 40 qualified organization if the qualified organization is a permittee: 41 (1) The qualified organization may not accept a cash donation 42 from another permittee. 2025 IN 1276—LS 7030/DI 87 5 1 (2) The qualified organization may not accept an alcoholic 2 beverages donation from a permittee in exchange for agreeing 3 to accept: 4 (A) alcoholic beverages; or 5 (B) certain types or brands of alcoholic beverages; 6 to the exclusion, in whole or in part, of alcoholic beverages or 7 types or brands of alcoholic beverages from another 8 permittee. 9 (3) A permittee must provide the qualified organization, at the 10 time of delivery, a written record of the amount of alcoholic 11 beverages donated by the permittee. 12 (4) The qualified organization must maintain a record of 13 every alcoholic beverage: 14 (A) donated by a permittee; and 15 (B) consumed during the event. 16 (5) The qualified organization must return to a permittee all 17 alcoholic beverages that were: 18 (A) donated by the permittee; and 19 (B) not consumed at the event. 20 (6) A permittee may not offer anything of value to another 21 permittee in exchange for the other permittee making a 22 donation to the qualified organization. 23 (7) The qualified organization must store any donated 24 alcoholic beverages separately from the qualified 25 organization's normal alcoholic beverage inventory. 26 Sec. 6. (a) Subject to section 7 of this chapter, the commission 27 may adopt rules setting reasonable limits on the amount of 28 alcoholic beverages that a permittee may donate to a qualified 29 organization that is a permittee. The commission may establish a 30 method for calculating the maximum donation amount for an 31 event, using factors that include: 32 (1) the estimated adult attendance at the event; 33 (2) the event's duration; 34 (3) the types of alcoholic beverages donated; 35 (4) public health and safety considerations; 36 (5) maintaining the integrity of the three (3) tier system; and 37 (6) any other relevant factors. 38 (b) A permittee must apply to the commission not later than 39 fifteen (15) days before the date of an event for the commission to 40 review and approve or deny a proposed donation to a qualified 41 organization that is a permittee. 42 Sec. 7. (a) The commission may set limits on the amount of 2025 IN 1276—LS 7030/DI 87 6 1 alcoholic beverages that a permittee may donate to an individual 2 qualified organization that is a permittee in a calendar year. 3 (b) The limit set by the commission under subsection (a) may 4 not exceed the following volume limits in a calendar year to an 5 individual qualified organization that is a permittee: 6 (1) Two thousand five hundred (2,500) bottles of wine in seven 7 hundred fifty (750) milliliter bottles. 8 (2) Two thousand five hundred (2,500) bottles of liquor in 9 seven hundred fifty (750) milliliter bottles. 10 (3) Five hundred (500) cases of bottles of beer in twelve (12) 11 ounce bottles. 12 SECTION 11. IC 7.1-3-8-3, AS AMENDED BY P.L.153-2015, 13 SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE 14 JULY 1, 2025]: Sec. 3. (a) The holder of a liquor wholesaler's permit 15 shall be entitled to sell liquor at wholesale. 16 (b) A liquor wholesaler shall be entitled to purchase liquor within 17 this state from a person who holds an artisan distiller's permit, a 18 distiller's permit, a rectifier's permit, or a liquor wholesaler's permit. A 19 liquor wholesaler also may purchase liquor outside this state from the 20 primary source of supply and, from that source, may transport and 21 import liquor into this state. 22 (c) A liquor wholesaler may sell, transport, and deliver liquor only 23 to a person who, under this title, holds a: 24 (1) liquor retailer's permit; 25 (2) supplemental caterer's permit; 26 (3) liquor dealer's permit; or 27 (4) liquor wholesaler's permit. 28 (d) A liquor wholesaler may sell, donate, transport, and deliver 29 liquor to a qualified organization for: 30 (1) an allowable event to which under IC 7.1-3-6.1; applies or 31 (2) a charity auction to which under IC 7.1-3-6.2; applies. or 32 (3) an event under IC 7.1-3-6.3. 33 The sale, transportation, donation to a qualified organization, and 34 delivery of liquor shall be made only from inventory that has been 35 located on the wholesaler's premises before the time of invoicing and 36 delivery, and only in permissible containers and is subject to the rules 37 of the commission fixing the quantity which may be sold or delivered 38 at any one (1) time. 39 (d) (e) A liquor wholesaler's bona fide regular employees may 40 purchase liquor from the wholesaler in an amount not to exceed 41 eighteen (18) liters. 42 SECTION 12. IC 7.1-3-9-9.4 IS ADDED TO THE INDIANA 2025 IN 1276—LS 7030/DI 87 7 1 CODE AS A NEW SECTION TO READ AS FOLLOWS 2 [EFFECTIVE JULY 1, 2025]: Sec. 9.4. A liquor retailer may sell, 3 donate, transport, and deliver liquor to a qualified organization 4 for: 5 (1) an allowable event under IC 7.1-3-6.1; 6 (2) a charity auction under IC 7.1-3-6.2; or 7 (3) an event under IC 7.1-3-6.3. 8 SECTION 13. IC 7.1-3-9.5-1.5 IS ADDED TO THE INDIANA 9 CODE AS A NEW SECTION TO READ AS FOLLOWS 10 [EFFECTIVE JULY 1, 2025]: Sec. 1.5. (a) This section applies only 11 to a holder of: 12 (1) a supplemental caterer's permit; and 13 (2) a limited tobacco certificate under IC 7.1-3-18.5-1.5. 14 (b) The holder may apply for a cigar event endorsement that 15 allows the holder to sell cigars at a catered event that meets all of 16 the following requirements: 17 (1) The catered event is age restricted to individuals who: 18 (A) are at least twenty-one (21) years of age; and 19 (B) present valid identification before entering the event 20 premises. 21 (2) Cigars are the only tobacco products that are promoted, 22 displayed, and sold at the catered event. 23 (3) The catered event has been approved in writing by the 24 local government body having jurisdiction over the 25 enforcement of local smoking bans. 26 SECTION 14. IC 7.1-3-9.5-2, AS AMENDED BY P.L.145-2024, 27 SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE 28 JULY 1, 2025]: Sec. 2. (a) The holder of a supplemental caterer's 29 permit shall notify the commission in writing not later than forty-eight 30 (48) hours in advance of each function that the permittee intends to 31 cater with alcoholic beverages. The commission may waive the 32 forty-eight (48) hour notice period required under this subsection, if 33 authorized by the chairman or the chairman's designee, but may not 34 waive the requirement for filing notice. 35 (b) A holder of a supplemental caterer's permit to which section 36 1.5 of this chapter applies shall notify the commission of an event 37 at which the holder intends to display, promote, and sell cigars. 38 The notice shall: 39 (1) be in writing; 40 (2) be provided to the commission not later than fifteen (15) 41 days before the event; and 42 (3) include the written approval under section 1.5(b)(3) of this 2025 IN 1276—LS 7030/DI 87 8 1 chapter, signed by the local government body that enforces 2 local smoking bans. 3 A request for approval of an event under section 1.5(b)(3) of this 4 chapter must be delivered to the appropriate local government 5 body not later than thirty (30) days before the date of the event. 6 (b) (c) The notice under subsection (a) or (b) shall include the 7 following: 8 (1) The date, time, and location of the function to be catered. 9 (2) If the function is open to the public, located in a county having 10 a population of less than one hundred fifty thousand (150,000), 11 and located in a different county from the county where the 12 permittee holds the three-way permit required under section 1 of 13 this chapter, the signature of the following official on a document 14 stating the official's approval of the catering of alcoholic 15 beverages at the proposed date, time, and location: 16 (A) The president of the town council, if the location is in a 17 town. 18 (B) The mayor, if the location is in a city. 19 (C) The president of the board of county commissioners, if the 20 location is in unincorporated territory. 21 (3) If the event will include the display, promotion, and sale of 22 cigars under a cigar event endorsement, the notice must 23 include: 24 (A) written approval signed by the local government body 25 charged with enforcing local smoking bans; 26 (B) the license number of the permit holder's limited 27 tobacco sales certificate; 28 (C) verification that the event will be restricted to 29 individuals who are at least twenty-one (21) years of age; 30 (D) the business names of all licensed tobacco product 31 distributors from which cigars will be purchased for the 32 event; 33 (E) the license number issued by the Indiana department 34 of revenue under IC 6-7-2-8 for every tobacco product 35 distributor from which cigars will be purchased for the 36 event; and 37 (F) a nonrefundable event and inspection processing fee of 38 fifty dollars ($50) for each event. 39 (c) (d) If a permittee complies with all notice requirements of 40 subsection (b), (c), the commission in its absolute discretion has the 41 authority, any other provision of this title to the contrary 42 notwithstanding, to approve the proposed date and location of the 2025 IN 1276—LS 7030/DI 87 9 1 function to be catered. 2 (d) (e) The commission need not notify the permittee if the 3 commission approved the proposed date and location, and the 4 permittee may proceed as stated in the permittee's notice to the 5 commission. The commission shall notify the permittee by certified 6 United States mail or electronic mail, in advance of the function, if the 7 commission does not approve the proposed date or location. If a 8 permittee fails to obtain the written approval for an event under 9 subsection (c)(3)(A), the commission's failure to notify the 10 permittee of the denial of the event does not prevent the 11 commission or local government body with jurisdiction over the 12 event location from citing the permittee or closing down the event, 13 or both. 14 (e) (f) A permittee whose proposed date or location has been 15 disapproved by the commission still may cater the function on that date 16 and at that location, but the permittee may not cater alcoholic 17 beverages at that function on that date and at that location. 18 SECTION 15. IC 7.1-3-9.5-3, AS AMENDED BY P.L.105-2022, 19 SECTION 13, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE 20 JULY 1, 2025]: Sec. 3. (a) The holder of a supplemental caterer's 21 permit is entitled to purchase alcoholic beverages only from: 22 (1) a brewery as described in IC 7.1-3-2-7(5)(N); 23 (2) a farm winery as described in IC 7.1-3-12-5(a)(12); and 24 (3) any other permittee entitled to sell to the holder under this 25 title. 26 Except as provided in IC 7.1-3-6.1 and IC 7.1-3-6.2, the holder of a 27 supplemental caterer's permit is entitled to sell alcoholic beverages 28 only for on-premises consumption at those locations approved by the 29 commission and at times lawful under the holder's retailers' permits. 30 Except as provided in IC 7.1-3-6.1 and IC 7.1-3-6.2, the holder of a 31 supplemental caterer's permit is not entitled to sell alcoholic beverages 32 at wholesale, nor for carry-out or at-home delivery. 33 (b) If permitted by the state fair commission under IC 7.1-3-21-14, 34 a brewery under IC 7.1-3-2-7(5), a farm winery under IC 7.1-3-12, or 35 an artisan distillery under IC 7.1-3-27 may sell their own products to 36 consumers for consumption off the state fair grounds under 37 IC 7.1-3-21-14(b)(3), including at a location on the property of the state 38 fair grounds for which a supplemental caterer's permit has been 39 approved. 40 (c) If the holder of a supplemental caterer's permit has a cigar 41 event endorsement, the holder: 42 (1) may, with the consent of the chairman or chairman's 2025 IN 1276—LS 7030/DI 87 10 1 designee, display, promote, and sell cigars at approved events; 2 and 3 (2) may, but is not required to, sell alcoholic beverages at an 4 approved event at which cigars are displayed, promoted, and 5 sold. 6 SECTION 16. IC 7.1-3-10-7.5 IS ADDED TO THE INDIANA 7 CODE AS A NEW SECTION TO READ AS FOLLOWS 8 [EFFECTIVE JULY 1, 2025]: Sec. 7.5. A liquor dealer may sell, 9 donate, transport, and deliver liquor to a qualified organization 10 for: 11 (1) an allowable event under IC 7.1-3-6.1; 12 (2) a charity auction under IC 7.1-3-6.2; or 13 (3) an event under IC 7.1-3-6.3. 14 SECTION 17. IC 7.1-3-12-5, AS AMENDED BY P.L.194-2021, 15 SECTION 42, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE 16 JULY 1, 2025]: Sec. 5. (a) The following apply to the holder of a farm 17 winery permit: 18 (1) A holder is entitled to manufacture wine and to place wine 19 produced by the permit holder's farm winery in bottles or other 20 permissible containers. 21 (2) A holder is entitled to serve complimentary samples of the 22 winery's wine on the licensed premises or an outside area that is 23 contiguous to the licensed premises, as approved by the 24 commission if each employee who serves wine on the licensed 25 premises: 26 (A) holds an employee's permit under IC 7.1-3-18-9; and 27 (B) completes a server training program approved by the 28 commission. 29 (3) A holder is entitled to sell the winery's wine on the licensed 30 premises to consumers either by: 31 (A) the glass; 32 (B) the bottle; 33 (C) a box that contains a bag designed for storing and 34 dispensing wine; 35 (D) any combination of receptacles listed in clauses (A) 36 through (C); or 37 (E) any other container permissible under federal law. 38 Notwithstanding IC 7.1-1-3-20, the licensed premises may 39 include the farm winery parking lot or an area adjacent to the farm 40 winery. The parking lot or an adjacent area may only be used for 41 the purpose of conveying alcoholic beverages and other 42 nonalcoholic items to a customer subject to section 5.5 of this 2025 IN 1276—LS 7030/DI 87 11 1 chapter, and may not be used for point of sale purposes or any 2 other purpose. 3 (4) A holder is entitled to sell the winery's wine to consumers by 4 the bottle at a farmers' market that is operated on a nonprofit 5 basis. 6 (5) A holder is entitled to sell wine by: 7 (A) the bottle; 8 (B) the can; 9 (C) a box that contains a bag designed for storing and 10 dispensing wine; 11 (D) bulk container; 12 (E) the case; or 13 (F) any combination of receptacles listed in clauses (A) 14 through (E); 15 to a person who is the holder of a permit to sell wine at wholesale. 16 (6) A holder is exempt from the provisions of IC 7.1-3-14. 17 (7) A holder is entitled to advertise the name and address of any 18 retailer or dealer who sells wine produced by the permit holder's 19 winery. 20 (8) A holder for wine described in IC 7.1-1-2-3(a)(4): 21 (A) may allow transportation to and consumption of the wine 22 on the licensed premises; and 23 (B) may not sell, offer to sell, or allow the sale of the wine on 24 the licensed premises. 25 (9) A holder is entitled to purchase and sell bulk wine as set forth 26 in this chapter. 27 (10) A holder is entitled to sell wine as authorized by this section 28 for carryout on Sunday. 29 (11) A holder is entitled to sell and ship the farm winery's wine to 30 a person located in another state in accordance with the laws of 31 the other state. 32 (12) A holder is entitled to sell the farm winery's wine to the 33 holder of a supplemental caterer's permit issued under 34 IC 7.1-3-9.5 for on-premises consumption only at an event that is 35 held outdoors on property that is contiguous to the farm winery as 36 approved by the commission. 37 (13) A holder is entitled to be the proprietor of a restaurant that is 38 not subject to the minimum gross food sales or the minimum 39 projected food sales set forth in 905 IAC 1-41-2 and the gross 40 retail income requirements to sell carryout under IC 7.1-3-20-9.5. 41 A holder is entitled to conduct the following activities: 42 (A) Hold a beer retailer's permit, a wine retailer's permit, or a 2025 IN 1276—LS 7030/DI 87 12 1 liquor retailer's permit for a restaurant. 2 (B) Transfer wine directly from the farm winery to a restaurant 3 that the farm winery has an interest in by means of: 4 (i) bottles or cans; 5 (ii) bulk containers; or 6 (iii) a continuous flow system. 7 (C) Install a window between the farm winery and an adjacent 8 restaurant that allows the public and the holder of the permit 9 to view both premises. 10 (D) Install a doorway or other opening between the farm 11 winery and an adjacent restaurant that provides the public and 12 the holder of the permit with access to both the farm winery 13 and restaurant. 14 (14) A holder that does not distribute through an Indiana wine 15 wholesaler is entitled under the farm winery permit to sell and 16 deliver to a person holding a wine retailer or wine dealer permit 17 under this title a total of not more than three thousand (3,000) 18 gallons of the farm winery's wine in a calendar year, if the farm 19 winery has not sold in Indiana more than fifteen thousand 20 (15,000) gallons the previous calendar year. A holder that sells 21 and delivers under this subdivision shall comply with all 22 provisions applicable to a wholesaler in 905 IAC 1-5.1, 905 23 IAC 1-5.2, 905 IAC 1-21, 905 IAC 1-31, and 905 IAC 1-32.1. 24 (15) A holder must annually submit to the commission copies of 25 its Indiana and federal excise tax returns. 26 (16) A holder may sell, donate, transport, and deliver wine to 27 a qualified organization conducting any of the following: 28 (1) An allowable event under IC 7.1-3-6.1. 29 (2) A charity auction under IC 7.1-3-6.2. 30 (3) An event under IC 7.1-3-6.3. 31 (b) With the approval of the commission, a holder of a permit under 32 this chapter may conduct business at not more than three (3) additional 33 locations that are separate from the winery. At the additional locations, 34 the holder of a permit may conduct any business that is authorized at 35 the first location, except for manufacturing wine or placing wine in 36 bottles or containers. 37 (c) A farm winery may transfer wine from a storage facility or an 38 additional location described in subsection (b). A farm winery may sell 39 or transfer wine directly to a wine wholesaler from a storage facility 40 separate from the farm winery or an additional location described in 41 subsection (b). A farm winery may not sell or transfer wine from a 42 storage facility to any other permittee or a consumer. The farm winery 2025 IN 1276—LS 7030/DI 87 13 1 shall maintain an adequate written record of wine transferred: 2 (1) between the farm winery and the storage facility; and 3 (2) from the storage facility to the wholesaler. 4 (d) With the approval of the commission, a holder of a permit under 5 this chapter may: 6 (1) individually; or 7 (2) with other permit holders under this chapter, holders of artisan 8 distiller's permits, holders of brewer's permits issued under 9 IC 7.1-3-2-2(b), or any combination of holders described in this 10 subdivision; 11 participate in a trade show or an exposition at which products of each 12 permit holder participant are displayed, promoted, and sold. All of the 13 permit holders may occupy the same tent, structure, or building. The 14 commission may not grant approval under this subsection to a holder 15 of a permit under this chapter for more than forty-five (45) days in a 16 calendar year. 17 SECTION 18. IC 7.1-3-13-3, AS AMENDED BY P.L.41-2024, 18 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE 19 JULY 1, 2025]: Sec. 3. (a) The holder of a wine wholesaler's permit 20 may purchase, import, and transport wine, brandy, mixed beverages, or 21 flavored malt beverage from the primary source of supply. A wine 22 wholesaler may export and transport wine, brandy, or flavored malt 23 beverage by the bottle, barrel, cask, or other container, to points outside 24 Indiana. A wine wholesaler is entitled to sell, furnish, and deliver wine 25 or flavored malt beverage from inventory that has been located on the 26 wholesaler's premises before the time of invoicing and delivery to a 27 wine wholesaler, a wine retailer, a supplemental caterer, a temporary 28 wine permittee, and a wine dealer, but not at retail. A wine wholesaler 29 may sell, furnish, and deliver brandy or mixed beverages from 30 inventory that has been located on the wholesaler's premises before the 31 time of invoicing and delivery, but not at retail, only to a person who 32 holds a liquor retailer's permit, a supplemental caterer's permit, or a 33 liquor dealer's permit. A holder of a wine wholesaler's permit may sell 34 wine, mixed beverages, or flavored malt beverages to the wine 35 wholesaler's bona fide regular employees. 36 (b) A wine wholesaler may sell, donate, and deliver wine, mixed 37 beverages, or flavored malt beverage from inventory that has been 38 located on the wholesaler's premises before the time of invoicing and 39 delivery to a qualified organization that is conducting any of the 40 following: 41 (1) An allowable event to which under IC 7.1-3-6.1. applies or 42 (2) A charity auction to which under IC 7.1-3-6.2. applies. 2025 IN 1276—LS 7030/DI 87 14 1 (3) An event under IC 7.1-3-6.3. 2 (b) (c) As used in this section, "brandy" means: 3 (1) any alcoholic distillate described in 27 CFR 5.22(d) as in 4 effect on January 1, 1983; or 5 (2) a beverage product that: 6 (A) is prepared from a liquid described in subdivision (1); 7 (B) is classified as a cordial or liqueur as defined in 27 CFR 8 5.22(h) as in effect on January 1, 1997; and 9 (C) meets the following requirements: 10 (i) At least sixty-six and two-thirds percent (66 2/3%) of the 11 product's alcohol content is composed of a substance 12 described in subdivision (1). 13 (ii) The product's label makes no reference to any distilled 14 spirit other than brandy. 15 (iii) The product's alcohol content is not less than sixteen 16 percent (16%) by volume or thirty-two (32) degrees proof. 17 (iv) The product contains dairy cream. 18 (v) The product's sugar, dextrose, or levulose content is at 19 least twenty percent (20%) of the product's weight. 20 (vi) The product contains caramel coloring. 21 (c) (d) Nothing in this section allows a wine wholesaler to sell, give, 22 purchase, transport, or export beer (as defined in IC 7.1-1-3-6) unless 23 the wine wholesaler also holds a beer wholesaler's permit under 24 IC 7.1-3-3-1. 25 (d) (e) The holder of a wine wholesaler's permit may possess, 26 transport, sell, and deliver mixed beverages only to a person who holds 27 one (1) of the following: 28 (1) A liquor retailer's permit under IC 7.1-3-9. 29 (2) A supplemental caterer's permit under IC 7.1-3-9.5. 30 (3) A liquor dealer's permit under IC 7.1-3-10. 31 (4) A liquor wholesaler's permit under IC 7.1-3-8. 32 (5) A wine wholesaler's permit issued under this chapter. 33 SECTION 19. IC 7.1-3-14-4.5 IS ADDED TO THE INDIANA 34 CODE AS A NEW SECTION TO READ AS FOLLOWS 35 [EFFECTIVE JULY 1, 2025]: Sec. 4.5. A wine retailer may sell, 36 donate, transport, and deliver wine to a qualified organization for: 37 (1) an allowable event under IC 7.1-3-6.1; 38 (2) a charity auction under IC 7.1-3-6.2; or 39 (3) an event under IC 7.1-3-6.3. 40 SECTION 20. IC 7.1-3-18.5-1, AS AMENDED BY P.L.32-2019, 41 SECTION 11, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE 42 JULY 1, 2025]: Sec. 1. (a) A person may not sell or otherwise 2025 IN 1276—LS 7030/DI 87 15 1 distribute in exchange for consideration a tobacco product or electronic 2 cigarette at retail without a valid tobacco sales certificate issued by the 3 commission. 4 (b) Except as provided in section 1.5 of this chapter, a certificate 5 may be issued only to a person who owns or operates at least one (1) of 6 the following: 7 (1) A premises consisting of a permanent building or structure 8 where the tobacco product or electronic cigarette is sold or 9 distributed. 10 (2) A premises upon which a cigarette vending machine is 11 located. 12 SECTION 21. IC 7.1-3-18.5-1.5 IS ADDED TO THE INDIANA 13 CODE AS A NEW SECTION TO READ AS FOLLOWS 14 [EFFECTIVE JULY 1, 2025]: Sec. 1.5. (a) As used in this section, 15 "holder" means a person who holds a supplemental caterer's 16 permit under IC 7.1-3-9.5. 17 (b) The commission may issue a holder a limited tobacco sales 18 certificate under this chapter. Subject to subsection (d), the holder 19 of a limited tobacco sales certificate: 20 (1) may display, promote, and sell only cigars: 21 (A) at retail; and 22 (B) only at a catered event that is approved by the 23 commission under IC 7.1-3-9.5; and 24 (2) may not sell any other tobacco product at any time or 25 location. 26 (c) The holder of a limited tobacco sales certificate must comply 27 with all qualifications and legal requirements imposed on the 28 holder of a tobacco sales certificate and the retail sale of tobacco. 29 However, the holder is not subject to the special disqualification under section 2.4(a)(3) of this chapter.30 31 (d) A holder issued a limited tobacco sales certificate may not 32 display, promote, and sell cigars at a catered event unless the 33 holder is also issued a cigar event endorsement under IC 7.1-3-9.5. 34 SECTION 22. IC 7.1-3-18.5-2, AS AMENDED BY P.L.107-2024, 35 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE 36 JULY 1, 2025]: Sec. 2. (a) A person who desires a certificate must 37 provide the following to the commission: 38 (1) The applicant's name and mailing address and the address of 39 the premises for which the certificate is being issued. 40 (2) Except as provided in section 6(c) of this chapter, a fee of two 41 hundred dollars ($200). 42 (3) The name under which the applicant transacts or intends to 2025 IN 1276—LS 7030/DI 87 16 1 transact business. 2 (4) The address of the applicant's principal place of business or 3 headquarters, if any. 4 (5) The statement required under section 2.6 of this chapter. 5 (6) If the applicant is applying for a new certificate under section 6 3.2 of this chapter, a copy of each of the following: 7 (A) If the new ownership of the business is a business entity, 8 the articles of incorporation, articles of organization, or any 9 other formation documents of the business entity. 10 (B) If the new ownership of the business is an individual, 11 either: 12 (i) the sales or purchase agreement; or 13 (ii) an affidavit signed by the applicant concerning the sale 14 or purchase, on a form prescribed by the commission, that 15 includes the name and address of the seller and purchaser. 16 (C) The certificate held by the previous ownership of the 17 business. 18 (b) A separate certificate is required for each location where the 19 tobacco products or electronic cigarettes are sold or distributed. A retail 20 establishment may not hold more than one (1) active tobacco sales 21 certificate for a retail location at any time. 22 (c) A certificate holder shall conspicuously display the holder's 23 certificate on the holder's premises where the tobacco products or 24 electronic cigarettes are sold or distributed. 25 (d) Any intentional misstatement or suppression of a material fact 26 in an application filed under this section constitutes grounds for denial 27 of the certificate. 28 (e) A certificate may be issued only to a person who meets the 29 following requirements: 30 (1) If the person is an individual, the person must be at least 31 twenty-one (21) years of age. 32 (2) The person must be authorized to do business in Indiana. 33 (3) The person has not had an interest in a certificate revoked by 34 the commission for that business location within the preceding 35 one (1) year. 36 (f) The fees collected under this section shall be deposited in the 37 enforcement and administration fund under IC 7.1-4-10. 38 (g) An applicant for a limited tobacco sales certificate must 39 provide the commission with: 40 (1) the information required to apply for a certificate under 41 subsection (a), providing: 42 (A) the location of the licensed premises; and 2025 IN 1276—LS 7030/DI 87 17 1 (B) business information; 2 associated with the applicant's alcoholic beverage retailer's 3 permit; and 4 (2) the permit number of the applicant's: 5 (A) alcoholic beverage retailer's permit; and 6 (B) supplemental caterer's permit; 7 to which the cigar endorsement will be affixed. 8 SECTION 23. IC 7.1-3-18.5-11, AS ADDED BY P.L.214-2016, 9 SECTION 14, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE 10 JULY 1, 2025]: Sec. 11. (a) If a certificate holder sells or distributes 11 tobacco products or electronic cigarettes at a location: 12 (1) determined to be a public nuisance; or 13 (2) at which conduct or acts that are crimes or infractions under 14 IC 35 occur; 15 the commission may impose sanctions against the certificate holder 16 under IC 7.1-2-3-33 and section 5 of this chapter. 17 (b) If the criminal conduct under subsection (a)(2) at the 18 location involves the possession or sale of illegal substances or 19 other contraband under IC 35, the commission may include the 20 costs of disposing of the illegal substances or contraband in the 21 sanctions imposed on the certificate holder. 22 SECTION 24. IC 7.1-3-20-16.4, AS ADDED BY P.L.150-2021, 23 SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE 24 JULY 1, 2025]: Sec. 16.4. (a) If a holder of a permit issued under 25 section 16(e)(2) of this chapter has an interest in a production facility 26 permit for: 27 (1) a brewery described in IC 7.1-3-2-7(5); 28 (2) a farm winery described in IC 7.1-3-12-3; 29 (3) an artisan distillery described in IC 7.1-3-27-2; or 30 (4) a combination of the entities described in subdivisions (1) 31 through (3); 32 that is located on or adjacent to the premises for which the permit was 33 issued under section 16(e)(2) of this chapter, notwithstanding 905 34 IAC 1-29-2 and 905 IAC 1-41-2(c), the holder of the permit may sell 35 carryout beer, wine, or spirits manufactured at the entity described in 36 subdivisions (1) through (3) in the general merchandising area on the restaurant premises and in a self-serving display. 37 Minors may be 38 allowed in the general merchandising area of the restaurant. 39 (b) If a holder of a permit issued under section 16(e)(2) of this 40 chapter has an interest in a production facility permit for: 41 (1) a brewery described in IC 7.1-3-2-7(5); 42 (2) a farm winery described in IC 7.1-3-12-3; 2025 IN 1276—LS 7030/DI 87 18 1 (3) an artisan distillery described in IC 7.1-3-27-2; or 2 (4) a combination of the entities described in subdivisions (1) 3 through (3); 4 that is located on or adjacent to the premises for which the permit was 5 issued under section 16(e)(2) of this chapter, the holder of the permit 6 may allow a minor to participate in a nondrinking tour of the 7 production facilities on the premises if the minor is accompanied by an 8 adult as provided in IC 7.1-5-7-11(a)(27), IC 7.1-5-7-11(a)(28), and 9 IC 7.1-5-7-11(a)(29), and IC 7.1-5-7-11(a)(33), and the tour does not 10 include allowing tour participants to consume, taste, or sample 11 alcoholic beverages. 12 SECTION 25. IC 7.1-3-20-26, AS AMENDED BY P.L.11-2023, 13 SECTION 31, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE 14 JULY 1, 2025]: Sec. 26. (a) The commission may issue a one-way, 15 two-way, or three-way permit to sell alcoholic beverages for 16 on-premises consumption only to an applicant who is the owner of an 17 indoor theater that: 18 (1) is located in a city having a population of more than one 19 hundred fifty thousand (150,000) and less than five hundred 20 thousand (500,000); and 21 (2) has been listed in the National Register of Historic Places 22 maintained under the National Historic Preservation Act of 1966, 23 as amended. 24 A permit issued under this subsection may not be transferred (b) A 25 permit issued under this section and is subject to the quota 26 requirements of IC 7.1-3-22-3. 27 (b) The commission may issue a three-way permit to sell 28 alcoholic beverages for on-premises consumption only to an 29 applicant who is the owner of an indoor theater that is: 30 (1) located in a city having a population of more than eighteen 31 thousand (18,000) and less than twenty thousand (20,000); and 32 (2) listed in the National Register of Historic Places 33 maintained under the National Historic Preservation Act of 34 1966, as amended, as part of a national historic district. 35 A permit issued under this subsection may not be transferred and 36 is not subject to the quota requirements of IC 7.1-3-22-3. 37 SECTION 26. IC 7.1-3-20-27, AS AMENDED BY P.L.145-2024, 38 SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE 39 JULY 1, 2025]: Sec. 27. (a) This section applies to the premises of a 40 restaurant or hotel. 41 (b) Subject to subsection (c), the holder of a retailer's permit that is 42 issued for the premises of a restaurant or hotel may sell or dispense, for 2025 IN 1276—LS 7030/DI 87 19 1 on-premises consumption only, alcoholic beverages, for which the 2 permittee holds the appropriate permit, from a bar located on the 3 licensed premises that opens to an outside patio or terrace that is 4 contiguous adjacent to the main building of the licensed premises of 5 the restaurant or hotel. 6 (c) The holder of a retailer's permit that is issued for the premises of 7 a restaurant or hotel may sell or dispense alcoholic beverages as 8 provided under subsection (b) only if all the following conditions are 9 met: 10 (1) The patio or terrace area described in subsection (b) is: 11 (A) part of the licensed premises; located: 12 (i) within one hundred (100) feet of; and 13 (ii) adjacent to; 14 the main building of the licensed premises; and 15 (B) clearly delineated and completely enclosed on all sides by 16 a barrier that is at least eighteen (18) inches in height. 17 (2) Minors are allowed on the licensed premises at an outside 18 patio or terrace that contains a bar under subsection (b) only in 19 accordance with IC 7.1-5-7-11. 20 (d) A holder of a retailer's permit that is issued for the premises 21 of a restaurant or hotel may not locate a patio or terrace area 22 described in subsection (b) within any part of a public 23 right-of-way, unless the permit holder does the following: 24 (1) If the public right-of-way is owned or controlled by a local 25 government, the permit holder must: 26 (A) obtain written permission from the local government 27 agency or department that manages the public 28 right-of-way; and 29 (B) provide a copy of the written permission upon the 30 request of a commission employee or a law enforcement 31 officer or agency. 32 (2) If the public right-of-way is owned or controlled by the 33 state, the permit holder must obtain written permission from 34 the Indiana department of transportation. 35 SECTION 27. IC 7.1-5-5-10, AS AMENDED BY P.L.86-2018, 36 SECTION 138, IS AMENDED TO READ AS FOLLOWS 37 [EFFECTIVE JULY 1, 2025]: Sec. 10. (a) Except as provided in 38 subsection subsections (b) and (c), it is unlawful for a person who 39 holds a retailer's or dealer's permit of any type to receive or accept a 40 gift from a manufacturer of alcoholic beverages or from a permittee 41 authorized to sell and deliver alcoholic beverages. 42 (b) A person who holds a retailer's or dealer's permit may receive or 2025 IN 1276—LS 7030/DI 87 20 1 accept entertainment and professional and educational expenses from 2 a manufacturer of alcoholic beverages or from a permittee authorized 3 to sell and deliver alcoholic beverages, unless the entertainment or 4 professional and educational expenses are provided in exchange for an 5 agreement by the holder of the retailer's or dealer's permit to directly or 6 indirectly purchase alcoholic beverages from a: 7 (1) manufacturer; or 8 (2) permittee authorized to sell and deliver alcoholic beverages; 9 to the exclusion, in whole or in part, of alcoholic beverages sold or 10 delivered by another manufacturer or a permittee authorized to sell and 11 deliver alcoholic beverages. 12 (c) As used in this subsection, "permittee" means a person listed 13 in IC 7.1-3-6.1-5(1). A qualified organization that holds a retailer's 14 or dealer's permit may receive or accept donations of alcoholic 15 beverages from a permittee for any event conducted by the 16 qualified organization in compliance with: 17 (1) IC 7.1-3-6.1; 18 (2) IC 7.1-3-6.2; or 19 (3) IC 7.1-3-6.3. 20 (c) (d) A person who knowingly or intentionally violates this section 21 commits a Class A misdemeanor. 22 SECTION 28. IC 7.1-5-5-11, AS AMENDED BY P.L.270-2017, 23 SECTION 18, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE 24 JULY 1, 2025]: Sec. 11. (a) Except as provided in subsections (c), (d), 25 and (e), and (f), it is unlawful for a manufacturer of alcoholic 26 beverages or a permittee authorized to sell and deliver alcoholic 27 beverages to: 28 (1) give to another permittee who purchases alcoholic beverages 29 from the manufacturer or permittee a gift; or 30 (2) except as provided in IC 7.1-3-2-9 and IC 7.1-3-3-5(f), have 31 a business dealing with the other permittee. 32 (b) This section does not apply to the sale and delivery and 33 collection of the sale price of an alcoholic beverage in the ordinary 34 course of business. 35 (c) If the promotional program is approved under the rules adopted 36 by the commission and is conducted in all wholesaler establishments 37 through which the manufacturer distributes alcoholic beverages in 38 Indiana, a manufacturer of alcoholic beverages may award bona fide 39 promotional prizes and awards to any of the following: 40 (1) A person with a wholesaler's permit issued under IC 7.1-3. 41 (2) An employee of a person with a wholesaler's permit issued 42 under IC 7.1-3. 2025 IN 1276—LS 7030/DI 87 21 1 (d) A manufacturer may offer on a nondiscriminatory basis bona 2 fide incentives to wholesalers when the incentives are determined 3 based on sales to retailers or dealers occurring during specified times 4 for specified products. The incentive may be conditioned on the 5 wholesaler selling a: 6 (1) specified product at a specified price or less than a specified 7 price; or 8 (2) minimum quantity of a specified product to a single customer 9 in a single transaction. 10 The incentive may not be conditioned on a wholesaler having total 11 sales of a minimum quantity of a specified product during the 12 applicable period. 13 (e) A manufacturer or a permittee authorized to sell and deliver 14 alcoholic beverages may provide entertainment and professional and 15 educational expenses to another permittee, unless the entertainment or 16 professional and educational expenses are provided in exchange for an 17 agreement to directly or indirectly purchase alcoholic beverages from 18 a: 19 (1) manufacturer; or 20 (2) permittee authorized to sell and deliver alcoholic beverages; 21 to the exclusion, in whole or in part, of alcoholic beverages sold or 22 delivered by another manufacturer or a permittee authorized to sell and 23 deliver alcoholic beverages. 24 (f) As used in this subsection, "permittee" means a person listed 25 in IC 7.1-3-6.1-5(1). A qualified organization that is a permittee 26 may receive or accept donations of alcoholic beverages from a 27 permittee for any event conducted by the qualified organization in 28 compliance with: 29 (1) IC 7.1-3-6.1; 30 (2) IC 7.1-3-6.2; or 31 (3) IC 7.1-3-6.3. 32 (f) (g) A person who knowingly or intentionally violates this section 33 commits a Class A misdemeanor. 34 SECTION 29. IC 7.1-5-7-11, AS AMENDED BY P.L.170-2023, 35 SECTION 20, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE 36 JULY 1, 2025]: Sec. 11. (a) The provisions of sections 9 and 10 of this 37 chapter shall not apply if the public place involved is one (1) of the 38 following: 39 (1) Civic center. 40 (2) Convention center. 41 (3) Sports arena. 42 (4) Bowling center. 2025 IN 1276—LS 7030/DI 87 22 1 (5) Bona fide club. 2 (6) Drug store. 3 (7) Grocery store. 4 (8) Boat. 5 (9) Dining car. 6 (10) Pullman car. 7 (11) Club car. 8 (12) Passenger airplane. 9 (13) Horse racetrack facility holding a recognized meeting permit 10 under IC 4-31-5. 11 (14) Satellite facility (as defined in IC 4-31-2.1-36). 12 (15) Catering hall under IC 7.1-3-20-24 that is not open to the 13 public. 14 (16) That part of a restaurant which is separate from a room in 15 which is located a bar over which alcoholic beverages are sold or 16 dispensed by the drink. 17 (17) Entertainment complex. 18 (18) Indoor golf facility. 19 (19) A recreational facility such as a golf course, bowling center, 20 or similar facility that has the recreational activity and not the sale 21 of food and beverages as the principal purpose or function of the 22 person's business. 23 (20) A licensed premises owned or operated by a postsecondary 24 educational institution described in IC 21-17-6-1. 25 (21) An automobile racetrack. 26 (22) An indoor theater under IC 7.1-3-20-26. 27 (23) A senior residence facility campus (as defined in 28 IC 7.1-3-1-29(c)) at which alcoholic beverages are given or 29 furnished as provided under IC 7.1-3-1-29. 30 (24) A hotel other than a part of a hotel that is a room in a 31 restaurant in which a bar is located over which alcoholic 32 beverages are sold or dispensed by the drink. 33 (25) The location of an allowable event to which IC 7.1-3-6.1 34 applies. 35 (26) The location of a charity auction to which IC 7.1-3-6.2 36 applies. 37 (27) A tour of a brewery as provided in IC 7.1-3-20-16.4, if the 38 minor is in the company of a parent, legal guardian or custodian, 39 or family member who is at least twenty-one (21) years of age. 40 (28) A farm winery and any additional locations of the farm 41 winery under IC 7.1-3-12, if the minor is in the company of a 42 parent, legal guardian or custodian, or family member who is at 2025 IN 1276—LS 7030/DI 87 23 1 least twenty-one (21) years of age and the minor is accompanied 2 by the adult in any area that the adult may be present whether or 3 not the area: 4 (A) is separated in any manner from where the wine is 5 manufactured, sold, or consumed within the farm winery 6 premises; or 7 (B) operates under a retailer's permit. 8 (29) An artisan distillery under IC 7.1-3-27, if: 9 (A) the person who holds the artisan distiller's permit also 10 holds a farm winery permit under IC 7.1-3-12, or 11 IC 7.1-3-20-16.4(a) applies to the person; and 12 (B) the minor is in the company of a parent, legal guardian or 13 custodian, or family member who is at least twenty-one (21) 14 years of age. 15 (30) An art instruction studio under IC 7.1-5-8-4.6. 16 (31) The licensed premises of a food hall under IC 7.1-3-20-29 17 and the food and beverage vending space of a food hall vendor 18 permittee under IC 7.1-3-20-30. However, sections 9 and 10 of 19 this chapter apply to a bar within the food and beverage vending 20 space of a food hall vendor permittee under IC 7.1-3-20-30 that 21 serves alcoholic beverages intended to be consumed while sitting 22 or standing at the bar. 23 (32) A refreshment area designated under IC 7.1-3-31. 24 (33) A small brewery under IC 7.1-3-2-7(5) and a restaurant 25 of which the small brewery permit holder is the proprietor as 26 provided in IC 7.1-3-2-7(5)(B), if the minor is accompanied by 27 a parent, legal guardian, custodian, or family member who is 28 at least twenty-one (21) years of age. The minor may be in any 29 area in which the accompanying adult may be present, 30 whether or not the area: 31 (A) is separated in any manner from where the beer is 32 manufactured, sold, or consumed within the small brewery 33 premises; or 34 (B) operates under a retailer's permit as provided in 35 IC 7.1-3-2-7(5)(C). 36 (b) For the purpose of this subsection, "food" means meals prepared 37 on the licensed premises. It is lawful for a minor to be on licensed 38 premises in a room, outdoor patio, or terrace in which is located a bar 39 over which alcoholic beverages are sold or dispensed by the drink if all 40 the following conditions are met: 41 (1) The minor is in the company of a parent, guardian, or family 42 member who is at least twenty-one (21) years of age. or older. 2025 IN 1276—LS 7030/DI 87 24 1 (2) The purpose for being on the licensed premises is the 2 consumption of food and not the consumption of alcoholic 3 beverages. 4 (3) The minor, accompanied by the parent, guardian, or family 5 member who is at least twenty-one (21) years of age, or older, 6 must be seated at a table or booth in the bar area and shall not be 7 seated at the bar over which alcoholic beverages are sold or 8 dispensed by the drink. 9 SECTION 30. IC 7.1-5-8-4, AS AMENDED BY P.L.121-2022, 10 SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE 11 JULY 1, 2025]: Sec. 4. (a) It is a Class B misdemeanor for a person 12 who owns or operates a private or public restaurant or place of public 13 or private entertainment to knowingly or intentionally permit another 14 person to come into the establishment with an alcoholic beverage for 15 sale or gift, or for consumption in the establishment by that person or 16 another, or to serve a setup to a person who comes into the 17 establishment. However, the provisions of this section do not apply to 18 the following: 19 (1) A private room hired by a guest of a bona fide club or hotel 20 that holds a retail permit. 21 (2) A facility that is used in connection with the operation of a 22 paved track that is used primarily in the sport of auto racing. 23 (3) An outdoor place of public entertainment that: 24 (A) has an area of at least four (4) acres and not more than six 25 (6) acres; 26 (B) is located within one (1) mile of the White River; 27 (C) is owned and operated by a nonprofit corporation exempt 28 from federal income taxation under Section 501(c)(3) of the 29 Internal Revenue Code; and 30 (D) is used primarily in connection with live music concerts. 31 (4) A craft manufacturer (as defined in IC 7.1-3-30-1) at an event 32 held on the licensed premises of a host permittee (as defined in 33 IC 7.1-3-30-1) under a temporary craft manufacturer hospitality 34 permit issued under IC 7.1-3-30. 35 (b) An establishment operated in violation of this section is declared 36 to be a public nuisance and subject to abatement as other public 37 nuisances are abated under the provisions of this title. 38 (c) This section does not apply to a person who owns or operates a 39 private or public restaurant or place of public or private entertainment 40 where the alcoholic beverages brought into the establishment are 41 purchased by or donated to a qualified organization that is 42 conducting an event (1) an allowable event to which IC 7.1-3-6.1 2025 IN 1276—LS 7030/DI 87 25 1 applies, and the alcoholic beverage brought into the establishment is: 2 (A) in sealed bottles or cases; and (B) donated to or purchased by the 3 qualified organization to be offered as a prize in the allowable event; 4 or (2) a charity auction to which IC 7.1-3-6.2 applies, and the alcoholic 5 beverage brought into the establishment is: (A) in sealed bottles or 6 cases; and (B) donated to or purchased by the qualified organization to 7 be offered for sale in the charity auction. in compliance with: 8 (1) IC 7.1-3-6.1; 9 (2) IC 7.1-3-6.2; or 10 (3) IC 7.1-3-6.3. 11 (d) This section does not apply to an art instruction studio under 12 section 4.6 of this chapter. 13 SECTION 31. IC 7.1-5-8-6, AS AMENDED BY P.L.167-2023, 14 SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE 15 JULY 1, 2025]: Sec. 6. (a) It is a Class C misdemeanor for a person to 16 knowingly carry liquor into a restaurant or place of public 17 entertainment for the purpose of consuming it, displaying it, or selling, 18 furnishing, or giving it away to another person on the premises, or for 19 the purpose of having it served to himself or another person, then and 20 there. It is a Class C misdemeanor to knowingly consume liquor 21 brought into a public establishment in violation of this section. 22 (b) This section does not apply to a person at an outdoor place of 23 public entertainment that: 24 (1) has an area of at least four (4) acres and not more than six (6) 25 acres; 26 (2) is located within one (1) mile of the White River; 27 (3) is owned and operated by a nonprofit corporation exempt from 28 federal income taxation under Section 501(c)(3) of the Internal 29 Revenue Code; and 30 (4) is used primarily in connection with live music concerts. 31 (c) This section does not apply to a person who carries liquor into 32 a restaurant or place of public entertainment where the alcoholic 33 beverages brought into the establishment are purchased by or 34 donated to a qualified organization that is conducting an event (1) an 35 allowable event to which IC 7.1-3-6.1 applies, and the liquor brought 36 into the establishment is: (A) in sealed bottles or cases; and (B) 37 donated to or purchased by the qualified organization to be offered as 38 a prize in the allowable event; or (2) a charity auction to which 39 IC 7.1-3-6.2 applies, and the liquor brought into the establishment is: 40 (A) in sealed bottles or cases; and (B) donated to or purchased by the 41 qualified organization to be offered for sale in the charity auction. in 42 compliance with: 2025 IN 1276—LS 7030/DI 87 26 1 (1) IC 7.1-3-6.1; 2 (2) IC 7.1-3-6.2; or 3 (3) IC 7.1-3-6.3. 4 (d) This section does not apply to a craft manufacturer (as defined 5 in IC 7.1-3-30-1) at an event held on the licensed premises of a host 6 permittee (as defined in IC 7.1-3-30-1) under a temporary craft 7 manufacturer hospitality permit issued under IC 7.1-3-30. 8 (e) This section does not apply to a person who brings an alcoholic 9 beverage: 10 (1) purchased from: 11 (A) a vendor (as defined in IC 7.1-3-31-5); or 12 (B) a designated permittee (as defined in IC 7.1-3-31-2); and 13 (2) into a licensed premises: 14 (A) of a permittee who may or may not be a designated 15 permittee (as defined in IC 7.1-3-31-2); and 16 (B) that is located within a refreshment area designated under 17 IC 7.1-3-31. 18 SECTION 32. IC 7.1-7-2-17.7 IS ADDED TO THE INDIANA 19 CODE AS A NEW SECTION TO READ AS FOLLOWS 20 [EFFECTIVE JULY 1, 2025]: Sec. 17.7. "Nicotine analogue" has the 21 meaning set forth in IC 7.1-7-5-5. 22 SECTION 33. IC 7.1-7-5-5 IS ADDED TO THE INDIANA CODE 23 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 24 1, 2025]: Sec. 5. (a) As used in this section, "nicotine analogue" 25 means a substance that: 26 (1) has a chemical structure substantially similar to the 27 chemical structure of nicotine and produces; or 28 (2) has, purports to have, or is represented to have; 29 an effect on the central nervous system that is similar to or greater 30 than the effect that nicotine has on the central nervous system. 31 (b) A person may not sell or offer for sale a product that 32 contains a nicotine analogue. 33 (c) In determining whether a product contains a nicotine 34 analogue, the trier of fact may consider the following factors: 35 (1) Marketing of the product. 36 (2) Advertising and labeling. 37 (3) Whether the substance or product has been manufactured, 38 formulated, sold, distributed, or marketed with the intent to 39 avoid laws regulating the sale of products containing nicotine. 40 (4) Any other relevant factor. 41 (d) A person who knowingly or intentionally violates this section 42 commits a Class C misdemeanor. 2025 IN 1276—LS 7030/DI 87 27 1 SECTION 34. IC 35-52-7-97 IS ADDED TO THE INDIANA 2 CODE AS A NEW SECTION TO READ AS FOLLOWS 3 [EFFECTIVE JULY 1, 2025]: Sec. 97. IC 7.1-7-5-5 defines a crime 4 concerning products containing a nicotine analogue. 2025 IN 1276—LS 7030/DI 87