LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
FISCAL IMPACT STATEMENT
LS 7030 NOTE PREPARED: Jan 4, 2025
BILL NUMBER: HB 1276 BILL AMENDED:
SUBJECT: Various Alcoholic Beverage and Tobacco Matters.
FIRST AUTHOR: Rep. Manning BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED:XGENERAL IMPACT: State & Local
XDEDICATED
FEDERAL
Summary of Legislation: This bill 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.
The bill also 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 Date: July 1, 2025.
Explanation of State Expenditures: Alcohol and Tobacco Commission (ATC): The bill would increase
workload and expenditures for the ATC to administer and enforce the bill’s provisions for cigar event
endorsements, permittee donations of alcoholic beverages to qualified organizations who are permittees
conducting an event, issuance of limited tobacco sales certificates, and three-way permit applications for
theaters within a historic district. Increases in workload and expenditures would be offset from limited
tobacco sales certificate and cigar event endorsement fees.
Right-of-way: The bill may increase workload for the Indiana Department of Transportation to provide
written permission for a permittee to locate a patio or terrace within a state controlled right-of-way. The bill’s
requirements are within the agency’s routine administrative functions and should be able to be implemented
with no additional appropriations, assuming near customary agency staffing and resource levels.
HB 1276 1 Explanation of State Revenues: Limited Tobacco Sales Certificate: The bill would increase revenue to the
Enforcement and Administration Fund from limited tobacco sales certificate fees, which would be subject
to the rules and fees set for tobacco sales certificates under current law. The fee for the certificate is $200
and is paid every three years. Only a supplemental caterer’s permit may apply for a limited tobacco sales
certificate to sell cigars at a catered event. Currently as of August 2024, there are 1,370 active supplemental
caterer’s permits. If all permit holders apply for a limited tobacco sales certificate, the fee may generate an
estimated maximum of $274,000 in FY 2026 for the Enforcement and Administration Fund.
Cigar Event Endorsement: The bill allows a holder of a supplemental caterer’s permit and limited tobacco
sales certificate to apply for a cigar event endorsement. There is a $50 processing fee for each cigar event
endorsement. To the extent permittees apply for cigar event endorsements, fee revenue may increase.
However, any increase in revenue is expected to be small.
Permit for Theaters: The bill allows theaters within a historic district in the city of Logansport to apply for
a three-way permit. Permit fee revenue would increase if the ATC issues additional permits. Annual permit
fees are $1,000 if beer, wine, and liquor are served. Revenue is distributed to the General Fund (37%), the
city or town in which the licensed premises are located (33%), and the Enforcement and Administration Fund
(30%).
Disposal Expenditures: The ATC may have an increase in revenue from including disposal costs in sanctions
on tobacco sales certificate holders. The increase in revenue would offset the cost of disposal of illegal
substances or contraband.
ATC Penalty: The bill provides an exception for a small brewery and the brewery’s restaurant to the
prohibition of minors being allowed in a place where alcoholic beverages are sold and alcoholic beverages
brought into an establishment that are purchased by or donated to a qualified organization that is conducting
an event. To the extent that the bill decreases the number of permittees found to be in violation, revenue from
penalty fees could decrease. The Alcohol and Tobacco Commission can collect a maximum penalty of
$4,000, which is deposited in the Enforcement and Administration Fund. Any decrease in penalties is
expected to be small.
Penalty Provision: Currently, it is a crime for the following actions:
(1) Class C infraction for a minor to be in and for a parent to take a minor into a place where
alcoholic beverages are sold, with several exceptions;
(2) Class C misdemeanor for a permittee to recklessly permit a minor to be in a prohibited place and
taking liquor into restaurants; and
(3) Class B misdemeanor for taking alcoholic beverages on licensed premises and serving setups.
In addition, the bill makes it a Class C misdemeanor to sell a nicotine analogue.
The bill’s provisions could affect the number of criminal penalties and would have an indeterminable impact
on General Fund revenue. Any change in revenue is likely to be small. The maximum judgment for a Class
C infraction and a Class C misdemeanor is $500 and for a Class B misdemeanor is $1,000, which is deposited
in the state General Fund. The following linked document describes the fees and distribution of the revenue:
Court fees imposed in criminal, juvenile, and civil violation cases.
Explanation of Local Expenditures: Cigar Event Endorsement: The local government body in charge of
enforcing smoking bans would have an increase in workload to approve cigar event endorsements. The bill’s
HB 1276 2 requirements are within the agency’s routine administrative functions and should be able to be implemented
with no additional appropriations, assuming near customary agency staffing and resource levels.
Right-of-way: The bill may increase workload for a local agency that manages a right-of-way to provide
written permission for a permittee. The bill’s requirements are within the agency’s routine administrative
functions and should be able to be implemented with no additional appropriations, assuming near customary
agency staffing and resource levels.
Explanation of Local Revenues: Penalty Provision: The bill could have an indeterminable but likely minor
impact on revenue collected by certain local units. The following linked document describes the fees and
distribution of the revenue: Court fees imposed in criminal, juvenile, and civil violation cases.
State Agencies Affected: Alcohol and Tobacco Commission; Indiana Department of Transportation.
Local Agencies Affected: Local agencies that manage right-of-ways; Local units; Trial courts, local law
enforcement agencies; city of Logansport.
Information Sources: Legislative Services Agency. Indiana Handbook of Taxes, Revenues, and
Appropriations, FY 2024. Indiana Supreme Court, Indiana Trial Court Fee Manual.
Fiscal Analyst: Nate Bodnar, 317-234-9476.
HB 1276 3