Indiana House Bill HB1276 Comm Sub / Bill

                    *HB1276.1*
February 4, 2025
HOUSE BILL No. 1276
_____
DIGEST OF HB 1276 (Updated February 4, 2025 1:11 pm - DI 144)
Citations Affected:  IC 7.1-3; IC 7.1-5; IC 7.1-7; IC 35-52; noncode.
Synopsis:  Various alcoholic beverage and tobacco matters. Modifies
the insurance coverage requirements that apply to specified permit
holders. Allows the holder of a permit issued to the proprietor of a
restaurant facility in the passenger terminal complex of a publicly
owned airport to sell alcoholic beverages each day from 5 a.m. until 3
a.m. the following day. Allows specified local government entities to
permit the retail sale of alcoholic beverages in certain areas if a person
that has an agreement to act as concessionaire for the permitted
premises applies for and secures the necessary permits. Increases, from
45 to 60 days, the number of days in a calendar year the alcohol and
tobacco commission (commission) may approve for a small brewery,
farm winery, or artisan distillery to participate in a trade show or
exposition. Establishes requirements regarding permittee donations of
alcoholic beverages to qualified organizations who are permittees
conducting an event. Repeals a provision prohibiting a beer dealer from
selling and delivering beer for carry-out, or for delivery to a customer's
residence or office, in a quantity that exceeds 864 ounces in a single
transaction. Repeals a limitation on the maximum quantity of liquor
that a liquor dealer may deliver to a customer's residence or office at
any one time. Repeals a provision that allows the holder of a farm
winery permit to sell the winery's wine to consumers by the bottle at a
farmers' market that is operated on a nonprofit basis. Repeals a
limitation on the maximum quantity of wine that a wine dealer may sell
in a single transaction. Provides that if a tobacco certificate holder
(holder) sells or distributes tobacco products at a location where
(Continued next page)
Effective:  Upon passage; July 1, 2025.
Manning, Clere, Shonkwiler
January 13, 2025, read first time and referred to Committee on Public Policy.
February 4, 2025, amended, reported — Do Pass.
HB 1276—LS 7030/DI 87 Digest Continued
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. Allows a restaurant permittee that
meets certain requirements to establish on the premises a segregated
room attached to an outdoor patio in which cigar consumption may
occur. Provides that the 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. 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. Allows the commission to issue a food hall master permit
to a food hall that meets certain requirements. Requires the commission
to issue an airport refreshment area designation to a publicly owned
airport that submits an application to designate one or more
refreshment areas within the passenger terminal complex of the airport.
Specifies restrictions that apply to an airport refreshment area
designation. Allows a minor to be in a small brewery and the brewery's
restaurant, if accompanied by an adult. Makes it a Class C
misdemeanor to sell a nicotine analogue. Urges the legislative council
to assign to the interim study committee on public policy during the
2025 legislative interim the task of studying third party delivery of
beer, wine, and liquor to consumers by alcoholic beverage dealers and
retailers.
HB 1276—LS 7030/DI 87HB 1276—LS 7030/DI 87 February 4, 2025
First Regular Session of the 124th General Assembly (2025)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
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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 7.1-3-1-6.4, AS ADDED BY P.L.167-2024,
2 SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3 JULY 1, 2025]: Sec. 6.4. (a) This section applies to the holder of one
4 (1) or more of the following:
(1) A retailer's permit.5
6 (2) A craft manufacturer's permit, if alcoholic beverages are
7 served for consumption on the licensed premises.
(b) A permit holder 8	must maintain during the permit term:
9 (1) a liquor liability insurance policy; or
10 (2) an endorsement to a general liability insurance policy;
11 that has total liquor liability coverage. of at least five hundred
12 thousand dollars ($500,000); or (2) a liquor liability endorsement: (A)
13 to a general liability insurance policy; and (B) that has total coverage
14 of at least five hundred thousand dollars ($500,000). However,
15 (c) The insurance coverage requirements under subsection (b) do
16 not apply:
17 (1) while a permit is on deposit under IC 7.1-3-1.1; or
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1 (2) if the establishment that operates under the permit has
2 annual gross sales from the sale of alcoholic beverages for on
3 premises consumption of less than twenty-five thousand
4 dollars ($25,000).
5 (c) (d) If an establishment operates under:
6 (1) a retailer's permit; and
7 (2) a craft manufacturer's permit;
8 the insurance coverage requirements under subsection (b) apply to the
9 establishment as a whole. The permit holder is not required to maintain
10 the total insurance coverage requirements for each permit that is issued
11 to the establishment.
12 (d) (e) A permit holder must provide the commission with proof of
13 insurance coverage:
14 (1) to apply for or renew a permit;
15 (2) before the commission may make a permit active that is on
16 deposit under IC 7.1-3-1.1; or
17 (3) at any time, upon the request of the commission.
18 (e) (f) The commission may deny, suspend, revoke, or not renew a
permit, if the permit holder 19	fails to maintain the insurance coverage
20 required under this section.
21 (f) (g) After June 30, 2024, the commission may not:
22 (1) issue, renew, or transfer a permit; or
23 (2) make a permit active that is on deposit under IC 7.1-3-1.1;
24 unless the permit applicant or permit holder complies with this section.
25 This subsection expires July 1, 2027.
26 (g) (h) A permit holder that holds an active permit issued before
27 July 1, 2024, must comply with this section not later than January 1,
28 2025, or the commission may suspend or revoke the permit. This
29 subsection expires July 1, 2027.
30 SECTION 2. IC 7.1-3-1-14, AS AMENDED BY P.L.1-2018,
31 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
32 JULY 1, 2025]: Sec. 14. (a) Except as otherwise specifically provided
33 in this title, an appropriate permittee may sell alcoholic beverages each
34 day Monday through Sunday from 7 a.m., prevailing local time, until
35 3 a.m., prevailing local time, the following day.
36 (b) The holder of a retailer's permit may sell the appropriate
37 alcoholic beverages as follows:
38 (1) Monday through Sunday from 7 a.m., prevailing local time,
39 until 3 a.m., prevailing local time, the following day, the holder
40 of a retailer's permit may sell the appropriate alcoholic beverages
41 for consumption on the licensed premises.
42 (2) If the holder of a retailer's permit satisfies the requirements
HB 1276—LS 7030/DI 87 3
1 under this title for selling alcoholic beverages for consumption off
2 the licensed premises, the permit holder may also sell carryout:
3 (A) Monday through Saturday from 7 a.m., prevailing local
4 time, until 3 a.m., prevailing local time, the following day; and
5 (B) Sunday from noon, prevailing local time, until 8 p.m.,
6 prevailing local time.
7 (c) The holder of a dealer's permit may sell the appropriate alcoholic
8 beverages for carryout at the following times:
9 (1) Monday through Saturday from 7 a.m., prevailing local time,
10 until 3 a.m., prevailing local time, the following day.
11 (2) Sunday from noon, prevailing local time, until 8 p.m.,
12 prevailing local time.
13 (d) It is lawful for the holder of a permit under this article to sell
14 alcoholic beverages at athletic or sports events held on Sunday upon
15 premises that:
16 (1) are described in section 25(a) of this chapter;
17 (2) are a facility used in connection with the operation of a paved
18 track more than two (2) miles in length that is used primarily in
19 the sport of auto racing; or
20 (3) are being used for a professional or an amateur tournament;
21 beginning one (1) hour before the scheduled starting time of the event
22 or, if the scheduled starting time of the event is 1 p.m. or later,
23 beginning at noon.
24 (e) It is lawful for the holder of a valid beer, wine, or liquor
25 wholesaler's permit to sell to the holder of a valid retailer's or dealer's
26 permit at any time.
27 (f) The holder of a permit issued under IC 7.1-3-20-16(b) may
28 sell alcoholic beverages each day Monday through Sunday from 5
29 a.m., prevailing local time, until 3 a.m., prevailing local time, the
30 following day.
31 SECTION 3. IC 7.1-3-1-25, AS AMENDED BY P.L.145-2024,
32 SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
33 JULY 1, 2025]: Sec. 25. (a) A county, city, town, or township that by
34 itself or in combination with any other body of a county, city, town, or
35 township acquires by ownership or by lease any stadium, exhibition
36 hall, auditorium, theater, convention center, civic center, or park or
37 public recreation area with a permanent event or entertainment space
38 may permit the retail sale of alcoholic beverages upon the premises if:
39 (1) the governing board of the facility; or
40 (2) a person that has an agreement with the governing board
41 of the facility to act as concessionaire for the permitted
42 premises;
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1 first applies for and secures the necessary permits as required by this
2 title.
3 (b) A:
4 (1) county or township; or
5 (2) person that has an agreement with the county or township
6 to act as concessionaire for the permitted premises;
7 may be issued a permit for the retail sale of alcoholic beverages on the
8 premises of any community center, including a clubhouse, pavilion, or
9 social center that is located within a public park or operated by the
10 township.
11 (c) A county, city, town, or township that owns a golf course may
12 permit the retail sale of alcoholic beverages upon the premises of the
13 golf course if:
14 (1) the governing board of the golf course; or
15 (2) a person that has an agreement with the governing board
16 of the golf course to act as concessionaire for the golf course;
17 first applies for and secures the necessary permits required by this title.
18 (d) A:
19 (1) county, city, town, or township that owns a marina; or
20 (2) person that has an agreement with the county, city, town,
21 or township to act as concessionaire for the marina;
22 may be issued a permit for the retail sale of alcoholic beverages on the
23 premises of the marina. The permit may include the carryout sale of
24 alcoholic beverages in accordance with IC 7.1-3-4-6(c),
25 IC 7.1-3-9-9(c), IC 7.1-3-14-4(c), and 905 IAC 1-29 but may not
26 include at-home delivery of alcoholic beverages. However, the county,
27 city, town, or township, or a person that has an agreement with the
28 county, city, town, or township to act as concessionaire for the
29 permitted premises, must apply for and secure the necessary permits
30 that this title requires.
31 (e) Notwithstanding subsection (a), the commission may issue a
32 civic center permit to a person that:
33 (1) by the person's self or in combination with another person is
34 the proprietor, as owner or lessee, of an entertainment complex;
35 or
36 (2) has an agreement with a person described in subdivision (1)
37 to act as a concessionaire for the entertainment complex for the
38 full period for which the permit is to be issued.
39 SECTION 4. IC 7.1-3-2-7, AS AMENDED BY P.L.26-2024,
40 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
41 JULY 1, 2025]: Sec. 7. The holder of a brewer's permit or an
42 out-of-state brewer holding either a primary source of supply permit or
HB 1276—LS 7030/DI 87 5
1 an out-of-state brewer's permit may do the following:
2 (1) Manufacture beer.
3 (2) Place beer in containers or bottles.
4 (3) Transport beer.
5 (4) Sell and deliver beer to a person holding a beer wholesaler's
6 permit issued under IC 7.1-3-3.
7 (5) If the brewer manufactures, at all of the brewer's breweries, an
8 aggregate of not more than ninety thousand (90,000) barrels of
9 beer in a calendar year for sale or distribution within Indiana, the
10 permit holder may do the following:
11 (A) Sell and deliver a total of not more than thirty thousand
12 (30,000) barrels of beer in a calendar year to a person holding
13 a retailer or a dealer permit under this title. The total number
14 of barrels of beer that the permit holder may sell and deliver
15 under this clause in a calendar year may not exceed thirty
16 thousand (30,000) barrels of beer.
17 (B) Be the proprietor of a restaurant that is not subject to the
18 minimum gross food sales or the minimum projected food
19 sales set forth in 905 IAC 1-41-2.
20 (C) Hold a beer retailer's permit, a wine retailer's permit, or a
21 liquor retailer's permit for a restaurant established under clause
22 (B).
23 (D) Transfer beer directly from the brewery to the restaurant
24 by means of:
25 (i) bulk containers; or
26 (ii) a continuous flow system.
27 (E) Install a window between the brewery and an adjacent
28 restaurant that allows the public and the permittee to view both
29 premises.
30 (F) Install a doorway or other opening between the brewery
31 and an adjacent restaurant that provides the public and the
32 permittee with access to both premises.
33 (G) Sell the brewery's beer by the glass for consumption on the
34 premises. Brewers permitted to sell beer by the glass under
35 this clause must make food available for consumption on the
36 premises. A brewer may comply with the requirements of this
37 clause by doing any of the following:
38 (i) Allowing a vehicle of transportation that is a food
39 establishment (as defined in IC 16-18-2-137) to serve food
40 near the brewer's licensed premises.
41 (ii) Placing menus in the brewer's premises of restaurants
42 that will deliver food to the brewery.
HB 1276—LS 7030/DI 87 6
1 (iii) Providing food prepared at the brewery.
2 (H) Sell and deliver beer to a consumer at the licensed
3 premises of the brewer or at the residence of the consumer.
4 Notwithstanding IC 7.1-1-3-20, the licensed premises may
5 include the brewery parking lot or an area adjacent to the
6 brewery that may only be used for the purpose of conveying
7 alcoholic beverages and other nonalcoholic items to a
8 customer subject to section 10 of this chapter, and may not be
9 used for point of sale purposes or any other purpose. The
10 delivery to a consumer may be made only in a quantity at any
11 one (1) time of not more than one-half (1/2) barrel, but the
12 beer may be contained in bottles or other permissible
13 containers.
14 (I) Sell the brewery's beer as authorized by this section for
15 carryout on Sunday in a quantity at any one (1) time of not
16 more than five hundred seventy-six (576) ounces. A brewer's
17 beer may be sold under this clause at any address for which the
18 brewer holds a brewer's permit issued under this chapter if the
19 address is located within the same city boundaries in which the
20 beer was manufactured.
21 (J) With the approval of the commission, participate:
22 (i) individually; or
23 (ii) with other permit holders under this chapter, holders of
24 artisan distiller's permits, holders of farm winery permits, or
25 any combination of holders described in this item;
26 in a trade show or an exposition at which products of each
27 permit holder participant are displayed, promoted, and sold.
28 All of the permit holders may occupy the same tent, structure,
29 or building. The commission may not grant to a holder of a
30 permit under this chapter approval under this clause to
31 participate in a trade show or exposition for more than
32 forty-five (45) sixty (60) days in a calendar year.
33 (K) Store or condition beer in a secure building that is:
34 (i) separate from the brewery; and
35 (ii) owned or leased by the permit holder.
36 (L) Transfer beer from a building described in clause (K) back
37 to the brewery.
38 (M) Sell or transfer beer directly to a beer wholesaler from a
39 building described in clause (K), but may not sell or transfer
40 beer from the building to any other permittee or a consumer.
41 The brewer shall maintain an adequate written record of the
42 beer transferred:
HB 1276—LS 7030/DI 87 7
1 (i) between the brewery and the separate building; and
2 (ii) from the separate building to the wholesaler.
3 (N) Sell the brewery's beer to the holder of a supplemental
4 caterer's permit issued under IC 7.1-3-9.5 for on-premises
5 consumption only at an event that is held outdoors on property
6 that is contiguous to the brewery as approved by the
7 commission.
8 (O) Receive liquor from the holder of a distiller's permit issued
9 under IC 7.1-3-7 or the holder of an artisan distiller's permit
10 under IC 7.1-3-27 that is located in the same county as the
11 brewery for the purpose of carbonating and canning the liquor.
12 Upon the completion of canning of the liquor, the product
13 must be returned to the original production facility within
14 forty-eight (48) hours. The activity under this clause is not an
15 interest under IC 7.1-5-9.
16 (P) Receive beer from another permit holder under this
17 subdivision for the purpose of bottling and packaging the beer.
18 Upon completion of bottling and packaging the beer, the
19 product must be returned to the original permit holder who
20 manufactured the beer. The number of barrels of beer that a
21 permit holder receives, bottles, and packages under this clause
22 may not exceed the number of barrels of beer that the permit
23 holder produced from raw materials at the licensed premises
24 of the permit holder in the same calendar year. The activity
25 under this clause is not an interest under IC 7.1-5-9.
26 (Q) Sell or transfer beer directly to a food manufacturer
27 located in Indiana that is registered with the federal Food and
28 Drug Administration for the purpose of adding or integrating
29 the beer into a product or recipe.
30 (R) Manufacture beer for another permit holder under this
31 subdivision. Upon completion of manufacturing the beer, the
32 product must be transported to the permit holder for which the
33 beer was manufactured. To qualify under this clause:
34 (i) the permit holder for which the beer is manufactured
35 must have manufactured not less than forty (40) barrels of
36 beer produced from raw materials at the licensed premises
37 of the permit holder in the previous calendar year; and
38 (ii) the number of barrels of beer that a permit holder
39 manufactures under this clause may not exceed the number
40 of barrels of beer that the permit holder produced from raw
41 materials at the licensed premises of the permit holder in the
42 same calendar year.
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1 All records required by the federal Alcohol and Tobacco Tax
2 and Trade Bureau regarding the number of barrels of beer
3 produced from raw materials at the licensed premises of a
4 permit holder must be made available to the commission upon
5 request. The activity under this clause is not an interest under
6 IC 7.1-5-9.
7 (6) If the brewer's brewery manufactures more than ninety
8 thousand (90,000) barrels of beer in a calendar year for sale or
9 distribution within Indiana, the permit holder may own a portion
10 of the corporate stock of another brewery that:
11 (A) is located in the same county as the brewer's brewery;
12 (B) manufactures less than ninety thousand (90,000) barrels of
13 beer in a calendar year; and
14 (C) is the proprietor of a restaurant that operates under
15 subdivision (5).
16 (7) Provide complimentary samples of beer that are:
17 (A) produced by the brewer; and
18 (B) offered to consumers for consumption on the brewer's
19 premises.
20 (8) Own a portion of the corporate stock of a sports corporation
21 that:
22 (A) manages a minor league baseball stadium located in the
23 same county as the brewer's brewery; and
24 (B) holds a beer retailer's permit, a wine retailer's permit, or a
25 liquor retailer's permit for a restaurant located in that stadium.
26 (9) For beer described in IC 7.1-1-2-3(a)(4):
27 (A) may allow transportation to and consumption of the beer
28 on the licensed premises; and
29 (B) may not sell, offer to sell, or allow sale of the beer on the
30 licensed premises.
31 SECTION 5. IC 7.1-3-3-5, AS AMENDED BY P.L.153-2015,
32 SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
33 JULY 1, 2025]: Sec. 5. (a) The holder of a beer wholesaler's permit
34 may purchase and import from the primary source of supply, possess,
35 and sell at wholesale, beer and flavored malt beverages manufactured
36 within or without this state.
37 (b) A beer wholesaler permittee may possess, transport, sell, and
38 deliver beer to:
39 (1) another beer wholesaler authorized by the brewer to sell the
40 brand purchased;
41 (2) an employee;
42 (3) a holder of a beer retailer's permit, beer dealer's permit,
HB 1276—LS 7030/DI 87 9
1 temporary beer permit, dining car permit, boat permit, airplane
2 permit, or supplemental caterer's permit; and
3 (4) a qualified organization for:
4 (A) an allowable event to which under IC 7.1-3-6.1; applies;
5 or
6 (B) a charity auction to which under IC 7.1-3-6.2; applies; or
7 (C) an event under IC 7.1-3-6.3;
8 located within this state. The sale, donation to a qualified organization,
9 transportation, and delivery of beer shall be made only from inventory
10 that has been located on the wholesaler's premises before the time of
11 invoicing and delivery.
12 (c) The beer wholesaler's bona fide regular employees may purchase
13 beer from the wholesaler in:
14 (1) bottles, cans, or any other type of permissible containers in an
15 amount not to exceed forty-eight (48) pints; or
16 (2) one (1) keg;
17 at any one (1) time.
18 (d) The importation, transportation, possession, sale, and delivery
19 of beer shall be subject to the rules of the commission and subject to
20 the same restrictions provided in this title for a person holding a
21 brewer's permit.
22 (e) The holder of a beer wholesaler's permit may purchase, import,
23 possess, transport, sell, and deliver any commodity listed in
24 IC 7.1-3-10-5, unless prohibited by this title. However, a beer
25 wholesaler may deliver flavored malt beverages only to the holder of
26 one (1) of the following permits:
27 (1) A beer wholesaler or wine wholesaler permit, if the wholesaler
28 is authorized by the primary source of supply to sell the brand of
29 flavored malt beverage purchased.
30 (2) A wine retailer's permit, wine dealer's permit, temporary wine
31 permit, dining car wine permit, boat permit, airplane permit, or
32 supplemental caterer's permit.
33 (f) A beer wholesaler may:
34 (1) store beer for an out-of-state brewer described in IC 7.1-3-2-9
35 and deliver the stored beer to another beer wholesaler that the
36 out-of-state brewer authorizes to sell the beer;
37 (2) perform all necessary accounting and auditing functions
38 associated with the services described in subdivision (1); and
39 (3) receive a fee from an out-of-state brewer for the services
40 described in subdivisions (1) through (2).
41 SECTION 6. IC 7.1-3-4-6.5 IS ADDED TO THE INDIANA CODE
42 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
HB 1276—LS 7030/DI 87 10
1 1, 2025]: Sec. 6.5. A beer retailer may sell, donate, transport, and
2 deliver beer to a qualified organization for:
3 (1) an allowable event under IC 7.1-3-6.1;
4 (2) a charity auction under IC 7.1-3-6.2; or
5 (3) an event under IC 7.1-3-6.3.
6 SECTION 7. IC 7.1-3-5-3, AS AMENDED BY P.L.194-2021,
7 SECTION 33, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
8 JULY 1, 2025]: Sec. 3. (a) The holder of a beer dealer's permit shall be
9 entitled to purchase beer for sale under the permit only from a
10 permittee entitled to sell to a beer dealer under this title.
11 (b) A beer dealer shall be entitled to possess beer and sell it at retail
12 to a customer in permissible containers only.
13 (c) A beer dealer may not sell beer by the drink nor for consumption
14 on the licensed premises nor shall a beer dealer allow it to be consumed
15 on the licensed premises.
16 (d) Except as provided in subsection (e), a beer dealer shall be
17 entitled to sell beer to a customer and deliver it in permissible
18 containers to the customer on the licensed premises, or to the
19 customer's residence or office. A beer dealer shall not be entitled to sell
20 and deliver beer on the street or at the curb outside the licensed
21 premises, nor shall a beer dealer be entitled to sell beer at a place other
22 than the licensed premises. A beer dealer shall not be entitled to sell
23 beer and deliver beer for carry-out, or for delivery to a customer's
24 residence or office, in a quantity that exceeds eight hundred sixty-four
25 (864) ounces in a single transaction. This delivery may only be
26 performed by the permit holder or an employee who holds an employee
27 permit. However, notwithstanding IC 7.1-5-10-11, a beer dealer who
28 is licensed pursuant to IC 7.1-3-10-4 shall be entitled to sell and deliver
29 warm or cold beer for carry-out, or for delivery to a customer's
30 residence, office, or a designated location in barrels or other
31 commercial containers that do not exceed two thousand sixteen (2,016)
32 ounces per container. The permit holder shall maintain a written record
33 of each delivery for at least one (1) year that shows the customer's
34 name, location of delivery, and quantity sold.
35 (e) Unless a beer dealer is a grocery store or drug store, a beer
36 dealer may not sell or deliver alcoholic beverages or any other item
37 through a window in the licensed premises to a patron who is outside
38 the licensed premises. A beer dealer that is a grocery store or drug store
39 may sell any item except alcoholic beverages through a window in the
40 licensed premises to a patron who is outside the licensed premises.
41 SECTION 8. IC 7.1-3-5-3.5 IS ADDED TO THE INDIANA CODE
42 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
HB 1276—LS 7030/DI 87 11
1 1, 2025]: Sec. 3.5. A beer dealer may sell, donate, transport, and
2 deliver beer to a qualified organization for:
3 (1) an allowable event under IC 7.1-3-6.1;
4 (2) a charity auction under IC 7.1-3-6.2; or
5 (3) an event under IC 7.1-3-6.3.
6 SECTION 9. IC 7.1-3-6.1-2, AS AMENDED BY P.L.58-2019,
7 SECTION 24, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
8 JULY 1, 2025]: Sec. 2. As used in this chapter, "qualified organization"
9 has the meaning set forth in IC 4-32.3-2-31. For purposes of this
10 chapter, a qualified organization may also be a permittee.
11 SECTION 10. IC 7.1-3-6.1-4, AS ADDED BY P.L.153-2015,
12 SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
13 JULY 1, 2025]: Sec. 4. (a) A qualified organization may give away as
14 a prize for an allowable event an alcoholic beverage that is:
15 (1) purchased by or donated to the qualified organization by a
16 permittee or person described in section 5 of this chapter;
17 (2) in sealed bottles or cases; and
18 (3) provided for consumption off the premises only.
19 (b) A donation:
20 (1) from a permittee; and
21 (2) to a qualified organization that is a permittee;
22 is subject to the requirements set forth in IC 7.1-3-6.3.
23 SECTION 11. IC 7.1-3-6.2-1, AS AMENDED BY P.L.58-2019,
24 SECTION 26, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
25 JULY 1, 2025]: Sec. 1. As used in this chapter, "qualified organization"
26 has the meaning set forth in IC 4-32.3-2-31. For purposes of this
27 chapter, a qualified organization may also be a permittee.
28 SECTION 12. IC 7.1-3-6.2-3, AS ADDED BY P.L.153-2015,
29 SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
30 JULY 1, 2025]: Sec. 3. (a) A qualified organization may sell at auction
31 an alcoholic beverage that is:
32 (1) purchased from or received as a donation from a permittee or
33 person described in section 5 of this chapter;
34 (2) in sealed bottles or cases; and
35 (3) for consumption off the premises only.
36 (b) A donation:
37 (1) from a permittee; and
38 (2) to a qualified organization that is a permittee;
39 is subject to the requirements set forth in IC 7.1-3-6.3.
40 SECTION 13. IC 7.1-3-6.3 IS ADDED TO THE INDIANA CODE
41 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
42 JULY 1, 2025]:
HB 1276—LS 7030/DI 87 12
1 Chapter 6.3. Permittee Donations to Certain Qualified
2 Organizations
3 Sec. 1. This chapter applies to an event held by a qualified
4 organization:
5 (1) under:
6 (A) IC 7.1-3-6.1, at which donated alcoholic beverages are
7 awarded as prizes; or
8 (B) IC 7.1-3-6.2, at which donated alcoholic beverages are
9 auctioned off;
10 for consumption off the premises; or
11 (2) at which alcoholic beverages that are donated to the
12 qualified organization are served and consumed on the
13 premises during the event.
14 Sec. 2. As used in this chapter, "permittee" means a person
15 listed in IC 7.1-3-6.1-5(1).
16 Sec. 3. As used in this chapter, "qualified organization" has the
17 meaning set forth in IC 4-32.3-2-31. For purposes of this chapter,
18 a qualified organization may also be a permittee.
19 Sec. 4. A qualified organization may serve alcoholic beverages
20 for consumption on the premises during an event that are:
21 (1) purchased by or donated to the qualified organization by:
22 (A) a permittee; or
23 (B) a person that is not a permittee; and
24 (2) in sealed bottles or cases.
25 Sec. 5. The following restrictions apply to an event held by a
26 qualified organization if the qualified organization is a permittee:
27 (1) The qualified organization may not accept a cash donation
28 from another permittee.
29 (2) The qualified organization may not accept an alcoholic
30 beverages donation from a permittee in exchange for agreeing
31 to accept:
32 (A) alcoholic beverages; or
33 (B) certain types or brands of alcoholic beverages;
34 to the exclusion, in whole or in part, of alcoholic beverages or
35 types or brands of alcoholic beverages from another
36 permittee.
37 (3) A permittee must provide the qualified organization, at the
38 time of delivery, a written record of the amount of alcoholic
39 beverages donated by the permittee.
40 (4) The qualified organization must maintain a record of
41 every alcoholic beverage:
42 (A) donated by a permittee; and
HB 1276—LS 7030/DI 87 13
1 (B) consumed during the event.
2 (5) A permittee may not offer anything of value to another
3 permittee in exchange for the other permittee making a
4 donation to the qualified organization.
5 (6) The qualified organization must store any donated
6 alcoholic beverages separately from the qualified
7 organization's normal alcoholic beverage inventory.
8 Sec. 6. (a) Subject to section 7 of this chapter, the commission
9 may adopt rules setting reasonable limits on the amount of
10 alcoholic beverages that a permittee may donate to a qualified
11 organization that is a permittee. The commission may establish a
12 method for calculating the maximum donation amount for an
13 event, using factors that include:
14 (1) the estimated adult attendance at the event;
15 (2) the event's duration;
16 (3) the types of alcoholic beverages donated;
17 (4) public health and safety considerations;
18 (5) maintaining the integrity of the three (3) tier system; and
19 (6) any other relevant factors.
20 (b) A permittee must apply to the commission not later than
21 fifteen (15) days before the date of an event for the commission to
22 review and approve or deny a proposed donation to a qualified
23 organization that is a permittee.
24 Sec. 7. (a) The commission may set limits on the amount of
25 alcoholic beverages that a permittee may donate to an individual
26 qualified organization that is a permittee in a calendar year.
27 (b) The limit set by the commission under subsection (a) may
28 not exceed the following volume limits in a calendar year to an
29 individual qualified organization that is a permittee:
30 (1) Five thousand (5,000) bottles of wine in seven hundred
31 fifty (750) milliliter bottles.
32 (2) Five thousand (5,000) bottles of liquor in seven hundred
33 fifty (750) milliliter bottles.
34 (3) One thousand (1,000) cases of bottles of beer in twelve (12)
35 ounce bottles.
36 SECTION 14. IC 7.1-3-8-3, AS AMENDED BY P.L.153-2015,
37 SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
38 JULY 1, 2025]: Sec. 3. (a) The holder of a liquor wholesaler's permit
39 shall be entitled to sell liquor at wholesale.
40 (b) A liquor wholesaler shall be entitled to purchase liquor within
41 this state from a person who holds an artisan distiller's permit, a
42 distiller's permit, a rectifier's permit, or a liquor wholesaler's permit. A
HB 1276—LS 7030/DI 87 14
1 liquor wholesaler also may purchase liquor outside this state from the
2 primary source of supply and, from that source, may transport and
3 import liquor into this state.
4 (c) A liquor wholesaler may sell, transport, and deliver liquor only
5 to a person who, under this title, holds a:
6 (1) liquor retailer's permit;
7 (2) supplemental caterer's permit;
8 (3) liquor dealer's permit; or
9 (4) liquor wholesaler's permit.
10 (d) A liquor wholesaler may sell, donate, transport, and deliver
11 liquor to a qualified organization for:
12 (1) an allowable event to which under IC 7.1-3-6.1; applies or
13 (2) a charity auction to which under IC 7.1-3-6.2; applies. or
14 (3) an event under IC 7.1-3-6.3.
15 The sale, transportation, donation to a qualified organization, and
16 delivery of liquor shall be made only from inventory that has been
17 located on the wholesaler's premises before the time of invoicing and
18 delivery, and only in permissible containers and is subject to the rules
19 of the commission fixing the quantity which may be sold or delivered
20 at any one (1) time.
21 (d) (e) A liquor wholesaler's bona fide regular employees may
22 purchase liquor from the wholesaler in an amount not to exceed
23 eighteen (18) liters.
24 SECTION 15. IC 7.1-3-9-9.4 IS ADDED TO THE INDIANA
25 CODE AS A NEW SECTION TO READ AS FOLLOWS
26 [EFFECTIVE JULY 1, 2025]: Sec. 9.4. A liquor retailer may sell,
27 donate, transport, and deliver liquor to a qualified organization
28 for:
29 (1) an allowable event under IC 7.1-3-6.1;
30 (2) a charity auction under IC 7.1-3-6.2; or
31 (3) an event under IC 7.1-3-6.3.
32 SECTION 16. IC 7.1-3-9.5-3, AS AMENDED BY P.L.105-2022,
33 SECTION 13, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
34 JULY 1, 2025]: Sec. 3. (a) The holder of a supplemental caterer's
35 permit is entitled to purchase alcoholic beverages only from:
36 (1) a brewery as described in IC 7.1-3-2-7(5)(N);
37 (2) a farm winery as described in IC 7.1-3-12-5(a)(12);
38 IC 7.1-3-12-5(a)(11); and
39 (3) any other permittee entitled to sell to the holder under this
40 title.
41 Except as provided in IC 7.1-3-6.1 and IC 7.1-3-6.2, the holder of a
42 supplemental caterer's permit is entitled to sell alcoholic beverages
HB 1276—LS 7030/DI 87 15
1 only for on-premises consumption at those locations approved by the
2 commission and at times lawful under the holder's retailers' permits.
3 Except as provided in IC 7.1-3-6.1 and IC 7.1-3-6.2, the holder of a
4 supplemental caterer's permit is not entitled to sell alcoholic beverages
5 at wholesale, nor for carry-out or at-home delivery.
6 (b) If permitted by the state fair commission under IC 7.1-3-21-14,
7 a brewery under IC 7.1-3-2-7(5), a farm winery under IC 7.1-3-12, or
8 an artisan distillery under IC 7.1-3-27 may sell their own products to
9 consumers for consumption off the state fair grounds under
10 IC 7.1-3-21-14(b)(3), including at a location on the property of the state
11 fair grounds for which a supplemental caterer's permit has been
12 approved.
13 SECTION 17. IC 7.1-3-10-7, AS AMENDED BY P.L.194-2021,
14 SECTION 40, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
15 JULY 1, 2025]: Sec. 7. (a) The holder of a liquor dealer's permit shall
16 be entitled to purchase liquor only from a permittee entitled to sell to
17 a liquor dealer under this title.
18 (b) A liquor dealer shall be entitled to possess liquor and sell it at
19 retail in its original package to a customer only for consumption off the
20 licensed premises.
21 (c) A liquor dealer may deliver liquor only in permissible containers
22 to a customer's residence or office. in a quantity that does not exceed
23 twelve (12) quarts at any one (1) time. This delivery may only be
24 performed by the permit holder or an employee who holds an employee
25 permit. However, a liquor dealer who is licensed under IC 7.1-3-10-4
26 may deliver liquor in permissible containers to a customer's residence,
27 office, or designated location. The permit holder shall maintain a
28 written record of each delivery for at least one (1) year that shows the
29 customer's name, location of delivery, and quantity sold.
30 (d) A liquor dealer may not sell or deliver alcoholic beverages or
31 any other item through a window in the licensed premises to a patron
32 who is outside the licensed premises. However, a liquor dealer that is
33 a drug store may sell prescription drugs and health and beauty aids
34 through a window in the licensed premises to a patron who is outside
35 the licensed premises.
36 SECTION 18. IC 7.1-3-10-7.5 IS ADDED TO THE INDIANA
37 CODE AS A NEW SECTION TO READ AS FOLLOWS
38 [EFFECTIVE JULY 1, 2025]: Sec. 7.5. A liquor dealer may sell,
39 donate, transport, and deliver liquor to a qualified organization
40 for:
41 (1) an allowable event under IC 7.1-3-6.1;
42 (2) a charity auction under IC 7.1-3-6.2; or
HB 1276—LS 7030/DI 87 16
1 (3) an event under IC 7.1-3-6.3.
2 SECTION 19. IC 7.1-3-12-5, AS AMENDED BY P.L.194-2021,
3 SECTION 42, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
4 JULY 1, 2025]: Sec. 5. (a) The following apply to the holder of a farm
5 winery permit:
6 (1) A holder is entitled to manufacture wine and to place wine
7 produced by the permit holder's farm winery in bottles or other
8 permissible containers.
9 (2) A holder is entitled to serve complimentary samples of the
10 winery's wine on the licensed premises or an outside area that is
11 contiguous to the licensed premises, as approved by the
12 commission if each employee who serves wine on the licensed
13 premises:
14 (A) holds an employee's permit under IC 7.1-3-18-9; and
15 (B) completes a server training program approved by the
16 commission.
17 (3) A holder is entitled to sell the winery's wine on the licensed
18 premises to consumers either by:
19 (A) the glass;
20 (B) the bottle;
21 (C) a box that contains a bag designed for storing and
22 dispensing wine;
23 (D) any combination of receptacles listed in clauses (A)
24 through (C); or
25 (E) any other container permissible under federal law.
26 Notwithstanding IC 7.1-1-3-20, the licensed premises may
27 include the farm winery parking lot or an area adjacent to the farm
28 winery. The parking lot or an adjacent area may only be used for
29 the purpose of conveying alcoholic beverages and other
30 nonalcoholic items to a customer subject to section 5.5 of this
31 chapter, and may not be used for point of sale purposes or any
32 other purpose.
33 (4) A holder is entitled to sell the winery's wine to consumers by
34 the bottle at a farmers' market that is operated on a nonprofit
35 basis.
36 (5) (4) A holder is entitled to sell wine by:
37 (A) the bottle;
38 (B) the can;
39 (C) a box that contains a bag designed for storing and
40 dispensing wine;
41 (D) bulk container;
42 (E) the case; or
HB 1276—LS 7030/DI 87 17
1 (F) any combination of receptacles listed in clauses (A)
2 through (E);
3 to a person who is the holder of a permit to sell wine at wholesale.
4 (6) (5) A holder is exempt from the provisions of IC 7.1-3-14.
5 (7) (6) A holder is entitled to advertise the name and address of
6 any retailer or dealer who sells wine produced by the permit
7 holder's winery.
8 (8) (7) A holder for wine described in IC 7.1-1-2-3(a)(4):
9 (A) may allow transportation to and consumption of the wine
10 on the licensed premises; and
11 (B) may not sell, offer to sell, or allow the sale of the wine on
12 the licensed premises.
13 (9) (8) A holder is entitled to purchase and sell bulk wine as set
14 forth in this chapter.
15 (10) (9) A holder is entitled to sell wine as authorized by this
16 section for carryout on Sunday.
17 (11) (10) A holder is entitled to sell and ship the farm winery's
18 wine to a person located in another state in accordance with the
19 laws of the other state.
20 (12) (11) A holder is entitled to sell the farm winery's wine to the
21 holder of a supplemental caterer's permit issued under
22 IC 7.1-3-9.5 for on-premises consumption only at an event that is
23 held outdoors on property that is contiguous to the farm winery as
24 approved by the commission.
25 (13) (12) A holder is entitled to be the proprietor of a restaurant
26 that is not subject to the minimum gross food sales or the
27 minimum projected food sales set forth in 905 IAC 1-41-2 and the
28 gross retail income requirements to sell carryout under
29 IC 7.1-3-20-9.5. A holder is entitled to conduct the following
30 activities:
31 (A) Hold a beer retailer's permit, a wine retailer's permit, or a
32 liquor retailer's permit for a restaurant.
33 (B) Transfer wine directly from the farm winery to a restaurant
34 that the farm winery has an interest in by means of:
35 (i) bottles or cans;
36 (ii) bulk containers; or
37 (iii) a continuous flow system.
38 (C) Install a window between the farm winery and an adjacent
39 restaurant that allows the public and the holder of the permit
40 to view both premises.
41 (D) Install a doorway or other opening between the farm
42 winery and an adjacent restaurant that provides the public and
HB 1276—LS 7030/DI 87 18
1 the holder of the permit with access to both the farm winery
2 and restaurant.
3 (14) (13) A holder that does not distribute through an Indiana
4 wine wholesaler is entitled under the farm winery permit to sell
5 and deliver to a person holding a wine retailer or wine dealer
6 permit under this title a total of not more than three thousand
7 (3,000) gallons of the farm winery's wine in a calendar year, if the
8 farm winery has not sold in Indiana more than fifteen thousand
9 (15,000) gallons the previous calendar year. A holder that sells
10 and delivers under this subdivision shall comply with all
11 provisions applicable to a wholesaler in 905 IAC 1-5.1, 905
12 IAC 1-5.2, 905 IAC 1-21, 905 IAC 1-31, and 905 IAC 1-32.1.
13 (15) (14) A holder must annually submit to the commission
14 copies of its Indiana and federal excise tax returns.
15 (15) A holder may sell, donate, transport, and deliver wine to
16 a qualified organization conducting any of the following:
17 (1) An allowable event under IC 7.1-3-6.1.
18 (2) A charity auction under IC 7.1-3-6.2.
19 (3) An event under IC 7.1-3-6.3.
20 (b) With the approval of the commission, a holder of a permit under
21 this chapter may conduct business at not more than three (3) additional
22 locations that are separate from the winery. At the additional locations,
23 the holder of a permit may conduct any business that is authorized at
24 the first location, except for manufacturing wine or placing wine in
25 bottles or containers.
26 (c) A farm winery may transfer wine from a storage facility or an
27 additional location described in subsection (b). A farm winery may sell
28 or transfer wine directly to a wine wholesaler from a storage facility
29 separate from the farm winery or an additional location described in
30 subsection (b). A farm winery may not sell or transfer wine from a
31 storage facility to any other permittee or a consumer. The farm winery
32 shall maintain an adequate written record of wine transferred:
33 (1) between the farm winery and the storage facility; and
34 (2) from the storage facility to the wholesaler.
35 (d) With the approval of the commission, a holder of a permit under
36 this chapter may:
37 (1) individually; or
38 (2) with other permit holders under this chapter, holders of artisan
39 distiller's permits, holders of brewer's permits issued under
40 IC 7.1-3-2-2(b), or any combination of holders described in this
41 subdivision;
42 participate in a trade show or an exposition at which products of each
HB 1276—LS 7030/DI 87 19
1 permit holder participant are displayed, promoted, and sold. All of the
2 permit holders may occupy the same tent, structure, or building. The
3 commission may not grant approval under this subsection to a holder
4 of a permit under this chapter for more than forty-five (45) sixty (60)
5 days in a calendar year.
6 SECTION 20. IC 7.1-3-13-3, AS AMENDED BY P.L.41-2024,
7 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
8 JULY 1, 2025]: Sec. 3. (a) The holder of a wine wholesaler's permit
9 may purchase, import, and transport wine, brandy, mixed beverages, or
10 flavored malt beverage from the primary source of supply. A wine
11 wholesaler may export and transport wine, brandy, or flavored malt
12 beverage by the bottle, barrel, cask, or other container, to points outside
13 Indiana. A wine wholesaler is entitled to sell, furnish, and deliver wine
14 or flavored malt beverage from inventory that has been located on the
15 wholesaler's premises before the time of invoicing and delivery to a
16 wine wholesaler, a wine retailer, a supplemental caterer, a temporary
17 wine permittee, and a wine dealer, but not at retail. A wine wholesaler
18 may sell, furnish, and deliver brandy or mixed beverages from
19 inventory that has been located on the wholesaler's premises before the
20 time of invoicing and delivery, but not at retail, only to a person who
21 holds a liquor retailer's permit, a supplemental caterer's permit, or a
22 liquor dealer's permit. A holder of a wine wholesaler's permit may sell
23 wine, mixed beverages, or flavored malt beverages to the wine
24 wholesaler's bona fide regular employees.
25 (b) A wine wholesaler may sell, donate, and deliver wine, mixed
26 beverages, or flavored malt beverage from inventory that has been
27 located on the wholesaler's premises before the time of invoicing and
28 delivery to a qualified organization that is conducting any of the
29 following:
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.
32 (3) An event under IC 7.1-3-6.3.
33 (b) (c) As used in this section, "brandy" means:
34 (1) any alcoholic distillate described in 27 CFR 5.22(d) as in
35 effect on January 1, 1983; or
36 (2) a beverage product that:
37 (A) is prepared from a liquid described in subdivision (1);
38 (B) is classified as a cordial or liqueur as defined in 27 CFR
39 5.22(h) as in effect on January 1, 1997; and
40 (C) meets the following requirements:
41 (i) At least sixty-six and two-thirds percent (66 2/3%) of the
42 product's alcohol content is composed of a substance
HB 1276—LS 7030/DI 87 20
1 described in subdivision (1).
2 (ii) The product's label makes no reference to any distilled
3 spirit other than brandy.
4 (iii) The product's alcohol content is not less than sixteen
5 percent (16%) by volume or thirty-two (32) degrees proof.
6 (iv) The product contains dairy cream.
7 (v) The product's sugar, dextrose, or levulose content is at
8 least twenty percent (20%) of the product's weight.
9 (vi) The product contains caramel coloring.
10 (c) (d) Nothing in this section allows a wine wholesaler to sell, give,
11 purchase, transport, or export beer (as defined in IC 7.1-1-3-6) unless
12 the wine wholesaler also holds a beer wholesaler's permit under
13 IC 7.1-3-3-1.
14 (d) (e) The holder of a wine wholesaler's permit may possess,
15 transport, sell, and deliver mixed beverages only to a person who holds
16 one (1) of the following:
17 (1) A liquor retailer's permit under IC 7.1-3-9.
18 (2) A supplemental caterer's permit under IC 7.1-3-9.5.
19 (3) A liquor dealer's permit under IC 7.1-3-10.
20 (4) A liquor wholesaler's permit under IC 7.1-3-8.
21 (5) A wine wholesaler's permit issued under this chapter.
22 SECTION 21. IC 7.1-3-14-4.5 IS ADDED TO THE INDIANA
23 CODE AS A NEW SECTION TO READ AS FOLLOWS
24 [EFFECTIVE JULY 1, 2025]: Sec. 4.5. A wine retailer may sell,
25 donate, transport, and deliver wine to a qualified organization for:
26 (1) an allowable event under IC 7.1-3-6.1;
27 (2) a charity auction under IC 7.1-3-6.2; or
28 (3) an event under IC 7.1-3-6.3.
29 SECTION 22. IC 7.1-3-15-3 IS AMENDED TO READ AS
30 FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 3. (a) The holder of a
31 wine dealer's permit shall be entitled to purchase wine only from a
32 permittee who is authorized to sell to a wine dealer under this title. A
33 wine dealer shall be entitled to sell wine for consumption off the
34 licensed premises only and not by the drink.
35 (b) A wine dealer shall be entitled to sell wine in permissible
36 containers. in a quantity of not more than three (3) standard cases, as
37 determined under the rules of the commission, in a single transaction.
38 However, a wine dealer who is licensed under IC 7.1-3-10-4 may
39 possess wine and sell it at retail in its original package to a customer
40 only for consumption off the licensed premises.
41 (c) Unless a wine dealer is a grocery store or drug store, a wine
42 dealer may not sell or deliver alcoholic beverages or any other item
HB 1276—LS 7030/DI 87 21
1 through a window in the licensed premises to a patron who is outside
2 the licensed premises. A wine dealer that is a grocery store or drug
3 store may sell any item except alcoholic beverages through a window
4 in the licensed premises to a person who is outside the licensed
5 premises.
6 (d) However, a wine dealer who is licensed under IC 7.1-3-10-4 may
7 deliver wine only in permissible containers to a customer's residence,
8 office, or designated location. This delivery may only be performed by
9 the permit holder or an employee who holds an employee permit. The
10 permit holder shall maintain a written record of each delivery for at
11 least one (1) year that shows the customer's name, location of delivery,
12 and quantity sold.
13 SECTION 23. IC 7.1-3-18.5-11, AS ADDED BY P.L.214-2016,
14 SECTION 14, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
15 JULY 1, 2025]: Sec. 11. (a) If a certificate holder sells or distributes
16 tobacco products or electronic cigarettes at a location:
17 (1) determined to be a public nuisance; or
18 (2) at which conduct or acts that are crimes or infractions under
19 IC 35 occur;
20 the commission may impose sanctions against the certificate holder
21 under IC 7.1-2-3-33 and section 5 of this chapter.
22 (b) If the criminal conduct under subsection (a)(2) at the
23 location involves the possession or sale of illegal substances or
24 other contraband under IC 35, the commission may include the
25 costs of disposing of the illegal substances or contraband in the
26 sanctions imposed on the certificate holder.
27 SECTION 24. IC 7.1-3-20-8.7 IS ADDED TO THE INDIANA
28 CODE AS A NEW SECTION TO READ AS FOLLOWS
29 [EFFECTIVE UPON PASSAGE]: Sec. 8.7. (a) A restaurant
30 permittee that:
31 (1) is located in local government jurisdiction in which
32 smoking in the manner described in this section is permitted;
33 or
34 (2) has obtained the written permission of the local
35 government entity responsible for enforcing local smoking
36 ordinances;
37 may establish on the premises a segregated room attached to an
38 outdoor patio in which cigar consumption may occur.
39 (b) The following apply to a segregated room under subsection
40 (a):
41 (1) The room may not be accessible to individuals less than
42 twenty-one (21) years of age.
HB 1276—LS 7030/DI 87 22
1 (2) The room must be:
2 (A) separated from the rest of the facility by a closed door;
3 and
4 (B) connected to an outdoor patio area.
5 (3) The room may not be connected to the restaurant dining
6 room.
7 (4) All doors to the room must contain a sign stating that
8 individuals less than twenty-one (21) years of age are
9 prohibited from entering the room.
10 (5) The room must be well ventilated.
11 (6) Smoking in the room must be limited to cigar smoking.
12 (c) This section does not modify other statutes concerning the
13 sale of cigars and tobacco.
14 SECTION 25. IC 7.1-3-20-16.4, AS ADDED BY P.L.150-2021,
15 SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
16 JULY 1, 2025]: Sec. 16.4. (a) If a holder of a permit issued under
17 section 16(e)(2) of this chapter has an interest in a production facility
18 permit for:
19 (1) a brewery described in IC 7.1-3-2-7(5);
20 (2) a farm winery described in IC 7.1-3-12-3;
21 (3) an artisan distillery described in IC 7.1-3-27-2; or
22 (4) a combination of the entities described in subdivisions (1)
23 through (3);
24 that is located on or adjacent to the premises for which the permit was
25 issued under section 16(e)(2) of this chapter, notwithstanding 905
26 IAC 1-29-2 and 905 IAC 1-41-2(c), the holder of the permit may sell
27 carryout beer, wine, or spirits manufactured at the entity described in
28 subdivisions (1) through (3) in the general merchandising area on the
restaurant premises and in a self-serving display. 29	Minors may be
30 allowed in the general merchandising area of the restaurant.
31 (b) If a holder of a permit issued under section 16(e)(2) of this
32 chapter has an interest in a production facility permit for:
33 (1) a brewery described in IC 7.1-3-2-7(5);
34 (2) a farm winery described in IC 7.1-3-12-3;
35 (3) an artisan distillery described in IC 7.1-3-27-2; or
36 (4) a combination of the entities described in subdivisions (1)
37 through (3);
38 that is located on or adjacent to the premises for which the permit was
39 issued under section 16(e)(2) of this chapter, the holder of the permit
40 may allow a minor to participate in a nondrinking tour of the
41 production facilities on the premises if the minor is accompanied by an
42 adult as provided in IC 7.1-5-7-11(a)(27), IC 7.1-5-7-11(a)(28), and
HB 1276—LS 7030/DI 87 23
1 IC 7.1-5-7-11(a)(29), and IC 7.1-5-7-11(a)(33), and the tour does not
2 include allowing tour participants to consume, taste, or sample
3 alcoholic beverages.
4 SECTION 26. IC 7.1-3-20-26, AS AMENDED BY P.L.11-2023,
5 SECTION 31, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
6 JULY 1, 2025]: Sec. 26. (a) The commission may issue a one-way,
7 two-way, or three-way permit to sell alcoholic beverages for
8 on-premises consumption only to an applicant who is the owner of an
9 indoor theater that:
10 (1) is located in a city having a population of more than one
11 hundred fifty thousand (150,000) and less than five hundred
12 thousand (500,000); and
13 (2) has been listed in the National Register of Historic Places
14 maintained under the National Historic Preservation Act of 1966,
15 as amended.
16 A permit issued under this subsection may not be transferred (b) A
17 permit issued under this section and is subject to the quota
18 requirements of IC 7.1-3-22-3.
19 (b) The commission may issue a three-way permit to sell
20 alcoholic beverages for on-premises consumption only to an
21 applicant who is the owner of an indoor theater that is:
22 (1) located in a city having a population of more than eighteen
23 thousand (18,000) and less than twenty thousand (20,000); and
24 (2) listed in the National Register of Historic Places
25 maintained under the National Historic Preservation Act of
26 1966, as amended, as part of a national historic district.
27 A permit issued under this subsection may not be transferred and
28 is not subject to the quota requirements of IC 7.1-3-22-3.
29 SECTION 27. IC 7.1-3-20-27, AS AMENDED BY P.L.145-2024,
30 SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
31 JULY 1, 2025]: Sec. 27. (a) This section applies to the premises of a
32 restaurant or hotel.
33 (b) Subject to subsection (c), the holder of a retailer's permit that is
34 issued for the premises of a restaurant or hotel may sell or dispense, for
35 on-premises consumption only, alcoholic beverages, for which the
36 permittee holds the appropriate permit, from a bar located on the
37 licensed premises that opens to an outside patio or terrace that is
38 contiguous adjacent to the main building of the licensed premises of
39 the restaurant or hotel.
40 (c) The holder of a retailer's permit that is issued for the premises of
41 a restaurant or hotel may sell or dispense alcoholic beverages as
42 provided under subsection (b) only if all the following conditions are
HB 1276—LS 7030/DI 87 24
1 met:
2 (1) The patio or terrace area described in subsection (b) is:
3 (A) part of the licensed premises; located:
4 (i) within one hundred (100) feet of; and
5 (ii) adjacent to;
6 the main building of the licensed premises; and
7 (B) clearly delineated and completely enclosed on all sides by
8 a barrier that is at least eighteen (18) inches in height.
9 (2) Minors are allowed on the licensed premises at an outside
10 patio or terrace that contains a bar under subsection (b) only in
11 accordance with IC 7.1-5-7-11.
12 (d) A holder of a retailer's permit that is issued for the premises
13 of a restaurant or hotel may not locate a patio or terrace area
14 described in subsection (b) within any part of a public
15 right-of-way, unless the permit holder does the following:
16 (1) If the public right-of-way is owned or controlled by a local
17 government, the permit holder must:
18 (A) obtain written permission from the local government
19 agency or department that manages the public
20 right-of-way; and
21 (B) provide a copy of the written permission upon the
22 request of a commission employee or a law enforcement
23 officer or agency.
24 (2) If the public right-of-way is owned or controlled by the
25 state, the permit holder must obtain written permission from
26 the Indiana department of transportation.
27 SECTION 28. IC 7.1-3-20-29, AS AMENDED BY P.L.145-2024,
28 SECTION 13, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
29 JULY 1, 2025]: Sec. 29. (a) As used in this section, "food hall" means:
30 (1) for a food hall described in subsection (c) or (d), the
31 premises:
32 (1) (A) located within a retail shopping and food service
33 district; and
34 (2) (B) to which a master permit is issued under this section;
35 or
36 (2) for a food hall described in subsection (e), the premises to
37 which a master permit is issued under this section.
38 (b) As used in this section, "master permit" means a food hall master
39 permit issued under this section.
40 (c) Except as provided in subsection (d), the commission may issue
41 a master permit, which is a three-way retailer's permit for on premises
42 consumption, to a food hall located in a retail shopping and food
HB 1276—LS 7030/DI 87 25
1 service district that meets the following requirements:
2 (1) The district consists of an area that:
3 (A) has been redeveloped, renovated, or environmentally
4 remediated in part with grants from the federal, state, or local
5 government under IC 36-7-11; and
6 (B) is entirely located within an incorporated city or town.
7 (2) The district consists of land and a building or group of
8 buildings that are part of a common development.
9 (3) The district is located within a locally designated historic
10 district under IC 36-7-11 established by a city or town ordinance.
11 (4) The district contains at least one (1) building that:
12 (A) is on the list of the National Register for Historic Places or
13 qualifies as a historic building worthy of preservation under
14 IC 36-7-11; and
15 (B) has been approved for present commercial use by the local
16 historic preservation commission of the city or town.
17 (d) Subsection (c)(3) and (c)(4) does not apply to a food hall that
18 meets one (1) of the following descriptions:
19 (1) The food hall:
20 (A) is located within a certified technology park established
21 under IC 36-7-32; and
22 (B) operates within a previously vacant building that was, or
23 within a complex of buildings that were:
24 (i) placed in service at least twenty-five (25) years prior to
25 the redevelopment of the building or buildings; and
26 (ii) owned by a unit of local government or a public
27 charitable trust prior to redevelopment.
28 (2) The food hall:
29 (A) contains not less than ten (10) distinct nonaffiliated food
30 and beverage vendors; and
31 (B) is located within a mixed use development or
32 redevelopment project with a total investment of at least one
33 hundred million dollars ($100,000,000).
34 (e) The commission may issue a master permit, which is a
35 three-way retailer's permit for on premises consumption, to a food
36 hall that:
37 (1) is located within a consolidated city;
38 (2) is located within five hundred (500) feet of a building that:
39 (A) is on the list of the National Register for Historic
40 Places; or
41 (B) qualifies as a historic building worthy of preservation
42 under IC 36-7-11.1; and
HB 1276—LS 7030/DI 87 26
1 (3) contains not less than five (5) distinct nonaffiliated food
2 and beverage vendors.
3 (e) (f) The commission may issue a master permit to the owner or
4 developer of a food hall. The food hall constitutes a single permit
5 premises that:
6 (1) contains not less than:
7 (A) seven (7), distinct, nonaffiliated retail food and beverage
8 vendors, if the food hall is described in subsection (c) or (d);
9 or
10 (B) five (5), distinct, nonaffiliated retail food and beverage
11 vendors, if the food hall is described in subsection (e);
12 each of which may apply for a food hall vendor permit under
13 section 30 of this chapter; and
14 (2) has a seating capacity of the type traditionally designed for
15 food and drink for at least one hundred (100) people.
16 (f) (g) An applicant for a master permit shall post notice and appear
17 in front of the local board in which the permit premises is situated. The
18 local board shall determine the eligibility of the applicant under this
19 section and hear evidence in support of or against the master permit
20 location. A master permit may not be transferred to a location outside
21 the food hall permit premises. A permit that is inactive for more than
22 six (6) months shall revert back to the commission or may be deposited
23 with the commission under IC 7.1-3-1.1 with the commission's
24 permission.
25 (g) (h) A master permit authorized by this section may be issued
26 without regard to the proximity provisions of IC 7.1-3-21-11 or the
27 quota provisions of IC 7.1-3-22.
28 (h) (i) The commission may not require physical separation between
29 a bar area and a dining area in a food hall.
30 SECTION 29. IC 7.1-3-20-32 IS ADDED TO THE INDIANA
31 CODE AS A NEW SECTION TO READ AS FOLLOWS
32 [EFFECTIVE JULY 1, 2025]: Sec. 32. (a) For purposes of this
33 section, "permittee" means the holder of a permit issued under
34 IC 7.1-3-20-16(b).
35 (b) A publicly owned airport may submit an application to the
36 commission to designate one (1) or more refreshment areas within
37 the passenger terminal complex of the airport. If the commission
38 receives an application under this subsection, the commission shall
39 issue to the applicant an airport refreshment area designation.
40 (c) The following apply to an airport refreshment area
41 designation issued under subsection (b):
42 (1) Subject to subdivisions (2) through (4), a person may:
HB 1276—LS 7030/DI 87 27
1 (A) exit the licensed premises of a permittee located within
2 the designated refreshment area with an open container of
3 an alcoholic beverage; and
4 (B) consume the alcoholic beverage within the refreshment
5 area.
6 (2) The airport may establish:
7 (A) the boundaries; and
8 (B) restrictions on the operation;
9 of the refreshment area.
10 (3) A person may not consume an alcoholic beverage within
11 a refreshment area that was purchased outside of the
12 refreshment area.
13 (4) IC 7.1-5-8-5 applies to the refreshment area.
14 (d) The commission may issue an airport refreshment area
15 designation without publication of notice or investigation before a
16 local board. The commission may not charge a fee for issuing the
17 designation.
18 (e) In accordance with IC 7.1-2-3-3, the commission shall
19 prescribe the form for a publicly owned airport to apply for an
20 airport refreshment area designation.
21 SECTION 30. IC 7.1-3-23-16, AS AMENDED BY P.L.194-2021,
22 SECTION 57, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
23 JULY 1, 2025]: Sec. 16. The commission may revoke:
24 (1) a wholesaler's, retailer's, or dealer's permit of any type;
25 (2) the permit of a farm winery that sells and delivers under
26 IC 7.1-3-12-5(a)(14); IC 7.1-3-12-5(a)(13); or
27 (3) the permit of an artisan distillery that sells and delivers under
28 IC 7.1-3-27-8(a)(11);
29 after final judgment of conviction for an offense defined in this title.
30 The commission may revoke the permit of a holder listed in
31 subdivision (1) through (3) upon a second violation of a provision of
32 this title whether a judgment of conviction ensues or not.
33 SECTION 31. IC 7.1-3-27-8, AS AMENDED BY P.L.194-2021,
34 SECTION 59, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
35 JULY 1, 2025]: Sec. 8. (a) The holder of an artisan distiller's permit
36 may do only the following:
37 (1) Manufacture liquor, including blending liquor purchased from
38 another manufacturer with liquor the artisan distiller
39 manufactures under section 11 of this chapter.
40 (2) Bottle liquor manufactured by the artisan distiller.
41 (3) Insert liquor manufactured by the artisan distiller into a
42 container.
HB 1276—LS 7030/DI 87 28
1 (4) Store liquor manufactured by the artisan distiller, including at
2 a facility located within ten (10) miles of the artisan distiller's
3 distillery.
4 (5) Transport, sell, and deliver liquor manufactured by the artisan
5 distiller to:
6 (A) places outside Indiana; or
7 (B) the holder of a liquor wholesaler's permit under IC 7.1-3-8.
8 (6) Sell liquor manufactured by the artisan distiller to consumers
9 by the drink, bottle, container, or case from the licensed premises
10 of the distillery where the liquor was manufactured.
11 Notwithstanding IC 7.1-1-3-20, the licensed premises may
12 include the distillery parking lot or an area adjacent to the artisan
13 distillery. The parking lot or adjacent area may only be used for
14 the purpose of conveying alcoholic beverages and other
15 nonalcoholic items to a customer subject to section 8.1 of this
16 chapter and may not be used for point of sale purposes or any
17 other purpose.
18 (7) Serve complimentary samples of the liquor manufactured by
19 the artisan distiller to consumers on the premises of the distillery
20 where the liquor was manufactured.
21 (8) Sell liquor as authorized by this section for carryout on
22 Sunday in a quantity at any one (1) time of not more than four and
23 five-tenths (4.5) liters.
24 (9) With the approval of the commission, participate:
25 (A) individually; or
26 (B) with other permit holders under this chapter, holders of
27 farm winery permits, holders of brewer's permits issued under
28 IC 7.1-3-2-2(b), or any combination of holders described in
29 this clause;
30 in a trade show or an exposition at which products of each permit
31 holder participant are displayed, promoted, and sold. All of the
32 permit holders may occupy the same tent, structure, or building.
33 The commission may not grant to a holder of a permit under this
34 chapter approval under this subdivision to participate in a trade
35 show or exposition for more than forty-five (45) sixty (60) days
36 in a calendar year.
37 (10) Be the proprietor of a restaurant that is not subject to the
38 minimum gross food sales or the minimum projected food sales
39 set forth in 905 IAC 1-41-2 and the gross retail income
40 requirements to sell carryout under IC 7.1-3-20-9.5. A holder is
41 entitled to conduct the following activities:
42 (A) Hold a beer retailer's permit, a wine retailer's permit, or a
HB 1276—LS 7030/DI 87 29
1 liquor retailer's permit for a restaurant.
2 (B) Transfer liquor directly from the artisan distillery to a
3 restaurant that the artisan distiller has an interest in by means
4 of:
5 (i) bottles;
6 (ii) bulk containers; or
7 (iii) a continuous flow system.
8 (C) Install a window between the artisan distillery and an
9 adjacent restaurant that allows the public and the holder of the
10 permit to view both premises.
11 (D) Install a doorway or other opening between the artisan
12 distillery and an adjacent restaurant that provides the public
13 and the holder of the permit with access to both the artisan
14 distillery and restaurant.
15 (11) A holder that does not distribute through an Indiana liquor
16 wholesaler is entitled under the artisan distiller's permit to sell and
17 deliver to a person holding a liquor retailer or liquor dealer permit
18 under this title a total of not more than one thousand (1,000)
19 gallons of the artisan distillery's liquor in a calendar year, if the
20 artisan distiller has not sold in Indiana more than nine thousand
21 (9,000) gallons the previous calendar year. A holder that sells and
22 delivers under this subdivision shall comply with all provisions
23 applicable to a wholesaler in 905 IAC 1-5.1, 905 IAC 1-5.2, 905
24 IAC 1-21, 905 IAC 1-31, and 905 IAC 1-32.1.
25 (12) A holder must annually submit to the commission copies of
26 its Indiana and federal excise tax returns.
27 (b) The holder of an artisan distiller's permit who provides samples
28 or sells liquor by the glass must furnish the minimum food
29 requirements prescribed by the commission.
30 (c) A storage facility used by an artisan distiller under subsection
31 (a)(4) must conform with federal laws, rules, and regulations. An
32 artisan distiller may transfer liquor from a separate storage facility back
33 to the artisan distillery. An artisan distiller may sell or transfer liquor
34 directly to a liquor wholesaler from a storage facility that is separate
35 from the artisan distillery. An artisan distiller may not sell or transfer
36 liquor from a storage facility to any other permittee or a consumer. The
37 artisan distiller shall maintain an adequate written record of the liquor
38 transferred:
39 (1) between the artisan distillery and the storage facility; and
40 (2) from the storage facility to the liquor wholesaler.
41 (d) The holder of an artisan distiller's permit may transport liquor to
42 and from a brewery located within the same county for the purposes of
HB 1276—LS 7030/DI 87 30
1 carbonating and canning by the brewery. The activity under this
2 subsection is not an interest under IC 7.1-5-9.
3 (e) An artisan distiller who knowingly or intentionally violates this
4 section commits a Class B misdemeanor.
5 SECTION 32. IC 7.1-5-5-10, AS AMENDED BY P.L.86-2018,
6 SECTION 138, IS AMENDED TO READ AS FOLLOWS
7 [EFFECTIVE JULY 1, 2025]: Sec. 10. (a) Except as provided in
8 subsection subsections (b) and (c), it is unlawful for a person who
9 holds a retailer's or dealer's permit of any type to receive or accept a
10 gift from a manufacturer of alcoholic beverages or from a permittee
11 authorized to sell and deliver alcoholic beverages.
12 (b) A person who holds a retailer's or dealer's permit may receive or
13 accept entertainment and professional and educational expenses from
14 a manufacturer of alcoholic beverages or from a permittee authorized
15 to sell and deliver alcoholic beverages, unless the entertainment or
16 professional and educational expenses are provided in exchange for an
17 agreement by the holder of the retailer's or dealer's permit to directly or
18 indirectly purchase alcoholic beverages from 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 (c) As used in this subsection, "permittee" means a person listed
25 in IC 7.1-3-6.1-5(1). A qualified organization that holds a retailer's
26 or dealer's permit may receive or accept donations of alcoholic
27 beverages from a permittee for any event conducted by the
28 qualified organization in 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 (c) (d) A person who knowingly or intentionally violates this section
33 commits a Class A misdemeanor.
34 SECTION 33. IC 7.1-5-5-11, AS AMENDED BY P.L.270-2017,
35 SECTION 18, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
36 JULY 1, 2025]: Sec. 11. (a) Except as provided in subsections (c), (d),
37 and (e), and (f), it is unlawful for a manufacturer of alcoholic
38 beverages or a permittee authorized to sell and deliver alcoholic
39 beverages to:
40 (1) give to another permittee who purchases alcoholic beverages
41 from the manufacturer or permittee a gift; or
42 (2) except as provided in IC 7.1-3-2-9 and IC 7.1-3-3-5(f), have
HB 1276—LS 7030/DI 87 31
1 a business dealing with the other permittee.
2 (b) This section does not apply to the sale and delivery and
3 collection of the sale price of an alcoholic beverage in the ordinary
4 course of business.
5 (c) If the promotional program is approved under the rules adopted
6 by the commission and is conducted in all wholesaler establishments
7 through which the manufacturer distributes alcoholic beverages in
8 Indiana, a manufacturer of alcoholic beverages may award bona fide
9 promotional prizes and awards to any of the following:
10 (1) A person with a wholesaler's permit issued under IC 7.1-3.
11 (2) An employee of a person with a wholesaler's permit issued
12 under IC 7.1-3.
13 (d) A manufacturer may offer on a nondiscriminatory basis bona
14 fide incentives to wholesalers when the incentives are determined
15 based on sales to retailers or dealers occurring during specified times
16 for specified products. The incentive may be conditioned on the
17 wholesaler selling a:
18 (1) specified product at a specified price or less than a specified
19 price; or
20 (2) minimum quantity of a specified product to a single customer
21 in a single transaction.
22 The incentive may not be conditioned on a wholesaler having total
23 sales of a minimum quantity of a specified product during the
24 applicable period.
25 (e) A manufacturer or a permittee authorized to sell and deliver
26 alcoholic beverages may provide entertainment and professional and
27 educational expenses to another permittee, unless the entertainment or
28 professional and educational expenses are provided in exchange for an
29 agreement to directly or indirectly purchase alcoholic beverages from
30 a:
31 (1) manufacturer; or
32 (2) permittee authorized to sell and deliver alcoholic beverages;
33 to the exclusion, in whole or in part, of alcoholic beverages sold or
34 delivered by another manufacturer or a permittee authorized to sell and
35 deliver alcoholic beverages.
36 (f) As used in this subsection, "permittee" means a person listed
37 in IC 7.1-3-6.1-5(1). A qualified organization that is a permittee
38 may receive or accept donations of alcoholic beverages from a
39 permittee for any event conducted by the qualified organization in
40 compliance with:
41 (1) IC 7.1-3-6.1;
42 (2) IC 7.1-3-6.2; or
HB 1276—LS 7030/DI 87 32
1 (3) IC 7.1-3-6.3.
2 (f) (g) A person who knowingly or intentionally violates this section
3 commits a Class A misdemeanor.
4 SECTION 34. IC 7.1-5-7-11, AS AMENDED BY P.L.170-2023,
5 SECTION 20, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
6 JULY 1, 2025]: Sec. 11. (a) The provisions of sections 9 and 10 of this
7 chapter shall not apply if the public place involved is one (1) of the
8 following:
9 (1) Civic center.
10 (2) Convention center.
11 (3) Sports arena.
12 (4) Bowling center.
13 (5) Bona fide club.
14 (6) Drug store.
15 (7) Grocery store.
16 (8) Boat.
17 (9) Dining car.
18 (10) Pullman car.
19 (11) Club car.
20 (12) Passenger airplane.
21 (13) Horse racetrack facility holding a recognized meeting permit
22 under IC 4-31-5.
23 (14) Satellite facility (as defined in IC 4-31-2.1-36).
24 (15) Catering hall under IC 7.1-3-20-24 that is not open to the
25 public.
26 (16) That part of a restaurant which is separate from a room in
27 which is located a bar over which alcoholic beverages are sold or
28 dispensed by the drink.
29 (17) Entertainment complex.
30 (18) Indoor golf facility.
31 (19) A recreational facility such as a golf course, bowling center,
32 or similar facility that has the recreational activity and not the sale
33 of food and beverages as the principal purpose or function of the
34 person's business.
35 (20) A licensed premises owned or operated by a postsecondary
36 educational institution described in IC 21-17-6-1.
37 (21) An automobile racetrack.
38 (22) An indoor theater under IC 7.1-3-20-26.
39 (23) A senior residence facility campus (as defined in
40 IC 7.1-3-1-29(c)) at which alcoholic beverages are given or
41 furnished as provided under IC 7.1-3-1-29.
42 (24) A hotel other than a part of a hotel that is a room in a
HB 1276—LS 7030/DI 87 33
1 restaurant in which a bar is located over which alcoholic
2 beverages are sold or dispensed by the drink.
3 (25) The location of an allowable event to which IC 7.1-3-6.1
4 applies.
5 (26) The location of a charity auction to which IC 7.1-3-6.2
6 applies.
7 (27) A tour of a brewery as provided in IC 7.1-3-20-16.4, if the
8 minor is in the company of a parent, legal guardian or custodian,
9 or family member who is at least twenty-one (21) years of age.
10 (28) A farm winery and any additional locations of the farm
11 winery under IC 7.1-3-12, if the minor is in the company of a
12 parent, legal guardian or custodian, or family member who is at
13 least twenty-one (21) years of age and the minor is accompanied
14 by the adult in any area that the adult may be present whether or
15 not the area:
16 (A) is separated in any manner from where the wine is
17 manufactured, sold, or consumed within the farm winery
18 premises; or
19 (B) operates under a retailer's permit.
20 (29) An artisan distillery under IC 7.1-3-27, if:
21 (A) the person who holds the artisan distiller's permit also
22 holds a farm winery permit under IC 7.1-3-12, or
23 IC 7.1-3-20-16.4(a) applies to the person; and
24 (B) the minor is in the company of a parent, legal guardian or
25 custodian, or family member who is at least twenty-one (21)
26 years of age.
27 (30) An art instruction studio under IC 7.1-5-8-4.6.
28 (31) The licensed premises of a food hall under IC 7.1-3-20-29
29 and the food and beverage vending space of a food hall vendor
30 permittee under IC 7.1-3-20-30. However, sections 9 and 10 of
31 this chapter apply to a bar within the food and beverage vending
32 space of a food hall vendor permittee under IC 7.1-3-20-30 that
33 serves alcoholic beverages intended to be consumed while sitting
34 or standing at the bar.
35 (32) A refreshment area designated under IC 7.1-3-31.
36 (33) A small brewery under IC 7.1-3-2-7(5) and a restaurant
37 of which the small brewery permit holder is the proprietor as
38 provided in IC 7.1-3-2-7(5)(B), if the minor is accompanied by
39 a parent, legal guardian, custodian, or family member who is
40 at least twenty-one (21) years of age. The minor may be in any
41 area in which the accompanying adult may be present,
42 whether or not the area:
HB 1276—LS 7030/DI 87 34
1 (A) is separated in any manner from where the beer is
2 manufactured, sold, or consumed within the small brewery
3 premises; or
4 (B) operates under a retailer's permit as provided in
5 IC 7.1-3-2-7(5)(C).
6 (34) A refreshment area designated under IC 7.1-3-20-32.
7 (b) For the purpose of this subsection, "food" means meals prepared
8 on the licensed premises. It is lawful for a minor to be on licensed
9 premises in a room, outdoor patio, or terrace in which is located a bar
10 over which alcoholic beverages are sold or dispensed by the drink if all
11 the following conditions are met:
12 (1) The minor is in the company of a parent, guardian, or family
13 member who is at least twenty-one (21) years of age. or older.
14 (2) The purpose for being on the licensed premises is the
15 consumption of food and not the consumption of alcoholic
16 beverages.
17 (3) The minor, accompanied by the parent, guardian, or family
18 member who is at least twenty-one (21) years of age, or older,
19 must be seated at a table or booth in the bar area and shall not be
20 seated at the bar over which alcoholic beverages are sold or
21 dispensed by the drink.
22 SECTION 35. IC 7.1-5-8-4, AS AMENDED BY P.L.121-2022,
23 SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
24 JULY 1, 2025]: Sec. 4. (a) It is a Class B misdemeanor for a person
25 who owns or operates a private or public restaurant or place of public
26 or private entertainment to knowingly or intentionally permit another
27 person to come into the establishment with an alcoholic beverage for
28 sale or gift, or for consumption in the establishment by that person or
29 another, or to serve a setup to a person who comes into the
30 establishment. However, the provisions of this section do not apply to
31 the following:
32 (1) A private room hired by a guest of a bona fide club or hotel
33 that holds a retail permit.
34 (2) A facility that is used in connection with the operation of a
35 paved track that is used primarily in the sport of auto racing.
36 (3) An outdoor place of public entertainment that:
37 (A) has an area of at least four (4) acres and not more than six
38 (6) acres;
39 (B) is located within one (1) mile of the White River;
40 (C) is owned and operated by a nonprofit corporation exempt
41 from federal income taxation under Section 501(c)(3) of the
42 Internal Revenue Code; and
HB 1276—LS 7030/DI 87 35
1 (D) is used primarily in connection with live music concerts.
2 (4) A craft manufacturer (as defined in IC 7.1-3-30-1) at an event
3 held on the licensed premises of a host permittee (as defined in
4 IC 7.1-3-30-1) under a temporary craft manufacturer hospitality
5 permit issued under IC 7.1-3-30.
6 (5) A person who:
7 (A) owns or operates a private or public restaurant or
8 place of public or private entertainment within a
9 refreshment area designated under IC 7.1-3-20-32; and
10 (B) permits another person to come into the establishment:
11 (i) within the refreshment area; and
12 (ii) with an alcoholic beverage purchased from a
13 permittee (as defined in IC 7.1-3-20-32) for consumption
14 in the establishment by that person or another.
15 (b) An establishment operated in violation of this section is declared
16 to be a public nuisance and subject to abatement as other public
17 nuisances are abated under the provisions of this title.
18 (c) This section does not apply to a person who owns or operates a
19 private or public restaurant or place of public or private entertainment
20 where the alcoholic beverages brought into the establishment are
21 purchased by or donated to a qualified organization that is
22 conducting an event (1) an allowable event to which IC 7.1-3-6.1
23 applies, and the alcoholic beverage brought into the establishment is:
24 (A) in sealed bottles or cases; and (B) donated to or purchased by the
25 qualified organization to be offered as a prize in the allowable event;
26 or (2) a charity auction to which IC 7.1-3-6.2 applies, and the alcoholic
27 beverage brought into the establishment is: (A) in sealed bottles or
28 cases; and (B) donated to or purchased by the qualified organization to
29 be offered for sale in the charity auction. in compliance with:
30 (1) IC 7.1-3-6.1;
31 (2) IC 7.1-3-6.2; or
32 (3) IC 7.1-3-6.3.
33 (d) This section does not apply to an art instruction studio under
34 section 4.6 of this chapter.
35 SECTION 36. IC 7.1-5-8-6, AS AMENDED BY P.L.167-2023,
36 SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
37 JULY 1, 2025]: Sec. 6. (a) It is a Class C misdemeanor for a person to
38 knowingly carry liquor into a restaurant or place of public
39 entertainment for the purpose of consuming it, displaying it, or selling,
40 furnishing, or giving it away to another person on the premises, or for
41 the purpose of having it served to himself or another person, then and
42 there. It is a Class C misdemeanor to knowingly consume liquor
HB 1276—LS 7030/DI 87 36
1 brought into a public establishment in violation of this section.
2 (b) This section does not apply to a person at an outdoor place of
3 public entertainment that:
4 (1) has an area of at least four (4) acres and not more than six (6)
5 acres;
6 (2) is located within one (1) mile of the White River;
7 (3) is owned and operated by a nonprofit corporation exempt from
8 federal income taxation under Section 501(c)(3) of the Internal
9 Revenue Code; and
10 (4) is used primarily in connection with live music concerts.
11 (c) This section does not apply to a person who carries liquor into
12 a restaurant or place of public entertainment where the alcoholic
13 beverages brought into the establishment are purchased by or
14 donated to a qualified organization that is conducting an event (1) an
15 allowable event to which IC 7.1-3-6.1 applies, and the liquor brought
16 into the establishment is: (A) in sealed bottles or cases; and (B)
17 donated to or purchased by the qualified organization to be offered as
18 a prize in the allowable event; or (2) a charity auction to which
19 IC 7.1-3-6.2 applies, and the liquor brought into the establishment is:
20 (A) in sealed bottles or cases; and (B) donated to or purchased by the
21 qualified organization to be offered for sale in the charity auction. in
22 compliance with:
23 (1) IC 7.1-3-6.1;
24 (2) IC 7.1-3-6.2; or
25 (3) IC 7.1-3-6.3.
26 (d) This section does not apply to a craft manufacturer (as defined
27 in IC 7.1-3-30-1) at an event held on the licensed premises of a host
28 permittee (as defined in IC 7.1-3-30-1) under a temporary craft
29 manufacturer hospitality permit issued under IC 7.1-3-30.
30 (e) This section does not apply to a person who brings an alcoholic
31 beverage:
32 (1) purchased from:
33 (A) a vendor (as defined in IC 7.1-3-31-5); or
34 (B) a designated permittee (as defined in IC 7.1-3-31-2); and
35 (2) into a licensed premises:
36 (A) of a permittee who may or may not be a designated
37 permittee (as defined in IC 7.1-3-31-2); and
38 (B) that is located within a refreshment area designated under
39 IC 7.1-3-31.
40 (f) This section does not apply to a person who brings an
41 alcoholic beverage:
42 (1) purchased from a permittee (as defined in IC 7.1-3-20-32);
HB 1276—LS 7030/DI 87 37
1 and
2 (2) into a restaurant or place of public entertainment within
3 a refreshment area designated under IC 7.1-3-20-32.
4 SECTION 37. IC 7.1-5-10-12, AS AMENDED BY P.L.194-2021,
5 SECTION 65, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
6 JULY 1, 2025]: Sec. 12. (a) Except as provided in subsections (b)
7 through (d) and subsection (g), it is unlawful for a permittee to sell,
8 offer to sell, purchase or receive, an alcoholic beverage for anything
9 other than cash. A permittee who extends credit in violation of this
10 section shall have no right of action on the claim.
11 (b) A permittee may credit to a purchaser the actual price charged
12 for a package or an original container returned by the original
13 purchaser as a credit on a sale and refund to a purchaser the amount
14 paid by the purchaser for a container, or as a deposit on a container, if
15 it is returned to the permittee.
16 (c) A manufacturer may extend usual and customary credit for
17 alcoholic beverages sold to a customer who maintains a place of
18 business outside this state when the alcoholic beverages are actually
19 shipped to a point outside this state.
20 (d) An artisan distiller, a distiller, a farm winery, or a liquor or wine
21 wholesaler may extend credit on liquor, flavored malt beverages, and
22 wine sold to a permittee for a period of fifteen (15) days from the date
23 of invoice, date of invoice included. However, if the fifteen (15) day
24 period passes without payment in full, the:
25 (1) wholesaler;
26 (2) farm winery that sells and delivers under IC 7.1-3-12-5(a)(14);
27 IC 7.1-3-12-5(a)(13); or
28 (3) artisan distillery that sells and delivers under
29 IC 7.1-3-27-8(a)(11);
30 shall sell to that permittee on a cash on delivery basis only.
31 (e) A person who knowingly or intentionally violates this section
32 commits a Class B misdemeanor.
33 (f) Nothing in this section may be construed to prohibit a hotel,
34 restaurant, caterer, or a club that is not open to the general public from
35 extending credit to a consumer purchasing alcohol for personal use at
36 any time.
37 (g) Nothing in this section may be construed to prohibit a retailer or
38 dealer from accepting a:
39 (1) credit card;
40 (2) debit card;
41 (3) charge card; or
42 (4) stored value card;
HB 1276—LS 7030/DI 87 38
1 from a consumer purchasing alcohol for personal use.
2 SECTION 38. IC 7.1-5-12-5, AS AMENDED BY P.L.145-2024,
3 SECTION 21, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
4 UPON PASSAGE]: Sec. 5. (a) Except as provided in subsection (c) and
5 subject to section 13 of this chapter, smoking may be allowed in the
6 following:
7 (1) A horse racing facility operated under a permit under
8 IC 4-31-5 and any other permanent structure on land owned or
9 leased by the owner of the facility that is adjacent to the facility.
10 (2) A riverboat (as defined in IC 4-33-2-17) and any other
11 permanent structure that is:
12 (A) owned or leased by the owner of the riverboat; and
13 (B) located on land that is adjacent to:
14 (i) the dock to which the riverboat is moored; or
15 (ii) the land on which the riverboat is situated in the case of
16 a riverboat described in IC 4-33-2-17(2).
17 (3) A facility that operates under a gambling game license under
18 IC 4-35-5 and any other permanent structure on land owned or
19 leased by the owner of the facility that is adjacent to the facility.
20 (4) A satellite facility licensed under IC 4-31-5.5.
21 (5) An establishment owned or leased by a business that meets the
22 following requirements:
23 (A) The business was in business and permitted smoking on
24 December 31, 2012.
25 (B) The business prohibits entry by an individual who is less
26 than twenty-one (21) years of age.
27 (C) The owner or operator of the business holds a beer, liquor,
28 or wine retailer's permit.
29 (D) The business limits smoking in the establishment to
30 smoking with a waterpipe or hookah device.
31 (E) During the preceding calendar year, at least ten percent
32 (10%) of the business's annual gross income was from the sale
33 of loose tobacco for use in a waterpipe or hookah device.
34 (F) The person in charge of the business posts in the
35 establishment conspicuous signs that display the message that
36 cigarette smoking is prohibited.
37 (6) An establishment owned or leased by a business that meets the
38 following requirements:
39 (A) The business prohibits entry by an individual who is less
40 than twenty-one (21) years of age.
41 (B) The owner or operator of the business holds a beer, liquor,
42 or wine retailer's permit.
HB 1276—LS 7030/DI 87 39
1 (C) The business limits smoking in the establishment to cigar
2 smoking.
3 (D) During the preceding calendar year, at least ten percent
4 (10%) of the business's annual gross income was from the sale
5 of cigars and the rental of onsite humidors.
6 (E) The person in charge of the business posts in the
7 establishment conspicuous signs that display the message that
8 cigarette smoking is prohibited.
9 (7) A premises owned or leased by and regularly used for the
10 activities of a business that meets all of the following:
11 (A) The business is exempt from federal income taxation
12 under 26 U.S.C. 501(c).
13 (B) The business:
14 (i) meets the requirements to be considered a club under
15 IC 7.1-3-20-1; or
16 (ii) is a fraternal club (as defined in IC 7.1-3-20-7).
17 (C) The business provides food or alcoholic beverages only to
18 its bona fide members and their guests.
19 (D) The business:
20 (i) provides a separate, enclosed, designated smoking room
21 or area that is adequately ventilated to prevent migration of
22 smoke to nonsmoking areas of the premises;
23 (ii) allows smoking only in the room or area described in
24 item (i);
25 (iii) does not allow an individual who is less than twenty-one
26 (21) years of age to enter into the room or area described in
27 item (i); and
28 (iv) allows a guest in the smoking room or area described in
29 item (i) only when accompanied by a bona fide member of
30 the business.
31 (8) A retail tobacco store used primarily for the sale of tobacco
32 products and tobacco accessories that meets the following
33 requirements:
34 (A) The owner or operator of the store holds a valid tobacco
35 sales certificate issued under IC 7.1-3-18.5.
36 (B) The store prohibits entry by an individual who is less than
37 twenty-one (21) years of age.
38 (C) The sale of products other than tobacco products and
39 tobacco accessories is merely incidental.
40 (D) The sale of tobacco products accounts for at least
41 eighty-five percent (85%) of the store's annual gross sales.
42 (E) Food or beverages are not sold in a manner that requires
HB 1276—LS 7030/DI 87 40
1 consumption on the premises, and there is not an area set aside
2 for customers to consume food or beverages on the premises.
3 (9) A bar or tavern:
4 (A) for which a permittee holds:
5 (i) a beer retailer's permit under IC 7.1-3-4;
6 (ii) a liquor retailer's permit under IC 7.1-3-9; or
7 (iii) a wine retailer's permit under IC 7.1-3-14;
8 (B) that does not employ an individual who is less than
9 eighteen (18) years of age;
10 (C) that does not allow an individual who:
11 (i) is less than twenty-one (21) years of age; and
12 (ii) is not an employee of the bar or tavern;
13 to enter any area of the bar or tavern; and
14 (D) that is not located in a business that would otherwise be
15 subject to this chapter.
16 (10) A cigar manufacturing facility that does not offer retail sales.
17 (11) A premises of a cigar specialty store to which all of the
18 following apply:
19 (A) The owner or operator of the store holds a valid tobacco
20 sales certificate issued under IC 7.1-3-18.5.
21 (B) The sale of tobacco products and tobacco accessories
22 account for at least fifty percent (50%) of the store's annual
23 gross sales.
24 (C) The store has a separate, enclosed, designated smoking
25 room that is adequately ventilated to prevent migration of
26 smoke to nonsmoking areas.
27 (D) Smoking is allowed only in the room described in clause
28 (C).
29 (E) Individuals who are less than twenty-one (21) years of age
30 are prohibited from entering into the room described in clause
31 (C).
32 (F) Cigarette smoking is not allowed on the premises of the
33 store.
34 (G) The owner or operator of the store posts a conspicuous
35 sign on the premises of the store that displays the message that
36 cigarette smoking is prohibited.
37 (H) The store does not prepare any food or beverage that
38 would require a certified food protection manager under
39 IC 16-42-5.2.
40 (12) The premises of a business that is located in the business
41 owner's private residence (as defined in IC 3-5-2-42.5) if the only
42 employees of the business who work in the residence are the
HB 1276—LS 7030/DI 87 41
1 owner and other individuals who reside in the residence.
2 (13) That part of a hotel designated as an outside patio or terrace
3 that contains a bar under IC 7.1-3-20-27, to which all of the
4 following apply:
5 (A) The designated smoking area on the outside patio or
6 terrace is delineated from the rest of the outside patio or
7 terrace by a barrier that is at least eighteen (18) inches in
8 height.
9 (B) The designated smoking area is located at least twenty (20)
10 feet from any entrance to the hotel.
11 (C) Individuals less than twenty-one (21) years of age are not
12 allowed in the designated smoking area.
13 (14) A room located on the premises of a restaurant under
14 IC 7.1-3-20-8.7 that meets all of the requirements under
15 IC 7.1-3-20-8.7.
16 (b) The owner, operator, manager, or official in charge of an
17 establishment or premises in which smoking is allowed under this
18 section shall post conspicuous signs in the establishment that read
19 "WARNING: Smoking Is Allowed In This Establishment" or other
20 similar language.
21 (c) This section does not allow smoking in the following enclosed
22 areas of an establishment or premises described in subsection (a)(1)
23 through (a)(11):
24 (1) Any hallway, elevator, or other common area where an
25 individual who is less than twenty-one (21) years of age is
26 permitted.
27 (2) Any room that is intended for use by an individual who is less
28 than twenty-one (21) years of age.
29 (d) The owner, operator, or manager of an establishment or premises
30 that is listed under subsection (a) and that allows smoking shall provide
31 a verified statement to the commission that states that the establishment
32 or premises qualifies for the exemption. The commission may require
33 the owner, operator, or manager of an establishment or premises to
34 provide documentation or additional information concerning the
35 exemption of the establishment or premises.
36 SECTION 39. IC 7.1-7-2-17.7 IS ADDED TO THE INDIANA
37 CODE AS A NEW SECTION TO READ AS FOLLOWS
38 [EFFECTIVE JULY 1, 2025]: Sec. 17.7. "Nicotine analogue" has the
39 meaning set forth in IC 7.1-7-5-5.
40 SECTION 40. IC 7.1-7-5-5 IS ADDED TO THE INDIANA CODE
41 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
42 1, 2025]: Sec. 5. (a) As used in this section, "nicotine analogue"
HB 1276—LS 7030/DI 87 42
1 means a substance that:
2 (1) has a chemical structure substantially similar to the
3 chemical structure of nicotine and produces; or
4 (2) has, purports to have, or is represented to have;
5 an effect on the central nervous system that is similar to or greater
6 than the effect that nicotine has on the central nervous system.
7 (b) A person may not sell or offer for sale a product that
8 contains a nicotine analogue.
9 (c) In determining whether a product contains a nicotine
10 analogue, the trier of fact may consider the following factors:
11 (1) Marketing of the product.
12 (2) Advertising and labeling.
13 (3) Whether the substance or product has been manufactured,
14 formulated, sold, distributed, or marketed with the intent to
15 avoid laws regulating the sale of products containing nicotine.
16 (4) Any other relevant factor.
17 (d) A person who knowingly or intentionally violates this section
18 commits a Class C misdemeanor.
19 SECTION 41. IC 35-52-7-97 IS ADDED TO THE INDIANA
20 CODE AS A NEW SECTION TO READ AS FOLLOWS
21 [EFFECTIVE JULY 1, 2025]: Sec. 97. IC 7.1-7-5-5 defines a crime
22 concerning products containing a nicotine analogue.
23 SECTION 42. [EFFECTIVE JULY 1, 2025] (a) The legislative
24 council is urged to assign to the interim study committee on public
25 policy established by IC 2-5-1.3-4(15) during the 2025 legislative
26 interim the task of studying third party delivery of beer, wine, and
27 liquor to consumers by alcoholic beverage dealers and retailers.
28 (b) This SECTION expires January 1, 2026.
29 SECTION 43. An emergency is declared for this act.
HB 1276—LS 7030/DI 87 43
COMMITTEE REPORT
Mr. Speaker: Your Committee on Public Policy, to which was
referred House Bill 1276, has had the same under consideration and
begs leave to report the same back to the House with the
recommendation that said bill be amended as follows:
Page 1, delete lines 1 through 12, begin a new paragraph and insert:
"SECTION 1. IC 7.1-3-1-6.4, AS ADDED BY P.L.167-2024,
SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 6.4. (a) This section applies to the holder of one
(1) or more of the following:
(1) A retailer's permit.
(2) A craft manufacturer's permit, if alcoholic beverages are
served for consumption on the licensed premises.
(b) A permit holder must maintain during the permit term:
(1) a liquor liability insurance policy; or
(2) an endorsement to a general liability insurance policy;
that has total liquor liability coverage. of at least five hundred
thousand dollars ($500,000); or (2) a liquor liability endorsement: (A)
to a general liability insurance policy; and (B) that has total coverage
of at least five hundred thousand dollars ($500,000). However,
(c) The insurance coverage requirements under subsection (b) do
not apply:
(1) while a permit is on deposit under IC 7.1-3-1.1; or
(2) if the establishment that operates under the permit has
annual gross sales from the sale of alcoholic beverages for on
premises consumption of less than twenty-five thousand
dollars ($25,000).
(c) (d) If an establishment operates under:
(1) a retailer's permit; and
(2) a craft manufacturer's permit;
the insurance coverage requirements under subsection (b) apply to the
establishment as a whole. The permit holder is not required to maintain
the total insurance coverage requirements for each permit that is issued
to the establishment.
(d) (e) A permit holder must provide the commission with proof of
insurance coverage:
(1) to apply for or renew a permit;
(2) before the commission may make a permit active that is on
deposit under IC 7.1-3-1.1; or
(3) at any time, upon the request of the commission.
(e) (f) The commission may deny, suspend, revoke, or not renew a
HB 1276—LS 7030/DI 87 44
permit, if the permit holder fails to maintain the insurance coverage
required under this section.
(f) (g) After June 30, 2024, the commission may not:
(1) issue, renew, or transfer a permit; or
(2) make a permit active that is on deposit under IC 7.1-3-1.1;
unless the permit applicant or permit holder complies with this section.
This subsection expires July 1, 2027.
(g) (h) A permit holder that holds an active permit issued before
July 1, 2024, must comply with this section not later than January 1,
2025, or the commission may suspend or revoke the permit. This
subsection expires July 1, 2027.
SECTION 2. IC 7.1-3-1-14, AS AMENDED BY P.L.1-2018,
SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 14. (a) Except as otherwise specifically provided
in this title, an appropriate permittee may sell alcoholic beverages each
day Monday through Sunday from 7 a.m., prevailing local time, until
3 a.m., prevailing local time, the following day.
(b) The holder of a retailer's permit may sell the appropriate
alcoholic beverages as follows:
(1) Monday through Sunday from 7 a.m., prevailing local time,
until 3 a.m., prevailing local time, the following day, the holder
of a retailer's permit may sell the appropriate alcoholic beverages
for consumption on the licensed premises.
(2) If the holder of a retailer's permit satisfies the requirements
under this title for selling alcoholic beverages for consumption off
the licensed premises, the permit holder may also sell carryout:
(A) Monday through Saturday from 7 a.m., prevailing local
time, until 3 a.m., prevailing local time, the following day; and
(B) Sunday from noon, prevailing local time, until 8 p.m.,
prevailing local time.
(c) The holder of a dealer's permit may sell the appropriate alcoholic
beverages for carryout at the following times:
(1) Monday through Saturday from 7 a.m., prevailing local time,
until 3 a.m., prevailing local time, the following day.
(2) Sunday from noon, prevailing local time, until 8 p.m.,
prevailing local time.
(d) It is lawful for the holder of a permit under this article to sell
alcoholic beverages at athletic or sports events held on Sunday upon
premises that:
(1) are described in section 25(a) of this chapter;
(2) are a facility used in connection with the operation of a paved
track more than two (2) miles in length that is used primarily in
HB 1276—LS 7030/DI 87 45
the sport of auto racing; or
(3) are being used for a professional or an amateur tournament;
beginning one (1) hour before the scheduled starting time of the event
or, if the scheduled starting time of the event is 1 p.m. or later,
beginning at noon.
(e) It is lawful for the holder of a valid beer, wine, or liquor
wholesaler's permit to sell to the holder of a valid retailer's or dealer's
permit at any time.
(f) The holder of a permit issued under IC 7.1-3-20-16(b) may
sell alcoholic beverages each day Monday through Sunday from 5
a.m., prevailing local time, until 3 a.m., prevailing local time, the
following day.
SECTION 3. IC 7.1-3-1-25, AS AMENDED BY P.L.145-2024,
SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 25. (a) A county, city, town, or township that by
itself or in combination with any other body of a county, city, town, or
township acquires by ownership or by lease any stadium, exhibition
hall, auditorium, theater, convention center, civic center, or park or
public recreation area with a permanent event or entertainment space
may permit the retail sale of alcoholic beverages upon the premises if:
(1) the governing board of the facility; or
(2) a person that has an agreement with the governing board
of the facility to act as concessionaire for the permitted
premises;
first applies for and secures the necessary permits as required by this
title.
(b) A:
(1) county or township; or
(2) person that has an agreement with the county or township
to act as concessionaire for the permitted premises;
may be issued a permit for the retail sale of alcoholic beverages on the
premises of any community center, including a clubhouse, pavilion, or
social center that is located within a public park or operated by the
township.
(c) A county, city, town, or township that owns a golf course may
permit the retail sale of alcoholic beverages upon the premises of the
golf course if:
(1) the governing board of the golf course; or
(2) a person that has an agreement with the governing board
of the golf course to act as concessionaire for the golf course;
first applies for and secures the necessary permits required by this title.
(d) A:
HB 1276—LS 7030/DI 87 46
(1) county, city, town, or township that owns a marina; or
(2) person that has an agreement with the county, city, town,
or township to act as concessionaire for the marina;
may be issued a permit for the retail sale of alcoholic beverages on the
premises of the marina. The permit may include the carryout sale of
alcoholic beverages in accordance with IC 7.1-3-4-6(c),
IC 7.1-3-9-9(c), IC 7.1-3-14-4(c), and 905 IAC 1-29 but may not
include at-home delivery of alcoholic beverages. However, the county,
city, town, or township, or a person that has an agreement with the
county, city, town, or township to act as concessionaire for the
permitted premises, must apply for and secure the necessary permits
that this title requires.
(e) Notwithstanding subsection (a), the commission may issue a
civic center permit to a person that:
(1) by the person's self or in combination with another person is
the proprietor, as owner or lessee, of an entertainment complex;
or
(2) has an agreement with a person described in subdivision (1)
to act as a concessionaire for the entertainment complex for the
full period for which the permit is to be issued.
SECTION 4. IC 7.1-3-2-7, AS AMENDED BY P.L.26-2024,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 7. The holder of a brewer's permit or an
out-of-state brewer holding either a primary source of supply permit or
an out-of-state brewer's permit may do the following:
(1) Manufacture beer.
(2) Place beer in containers or bottles.
(3) Transport beer.
(4) Sell and deliver beer to a person holding a beer wholesaler's
permit issued under IC 7.1-3-3.
(5) If the brewer manufactures, at all of the brewer's breweries, an
aggregate of not more than ninety thousand (90,000) barrels of
beer in a calendar year for sale or distribution within Indiana, the
permit holder may do the following:
(A) Sell and deliver a total of not more than thirty thousand
(30,000) barrels of beer in a calendar year to a person holding
a retailer or a dealer permit under this title. The total number
of barrels of beer that the permit holder may sell and deliver
under this clause in a calendar year may not exceed thirty
thousand (30,000) barrels of beer.
(B) Be the proprietor of a restaurant that is not subject to the
minimum gross food sales or the minimum projected food
HB 1276—LS 7030/DI 87 47
sales set forth in 905 IAC 1-41-2.
(C) Hold a beer retailer's permit, a wine retailer's permit, or a
liquor retailer's permit for a restaurant established under clause
(B).
(D) Transfer beer directly from the brewery to the restaurant
by means of:
(i) bulk containers; or
(ii) a continuous flow system.
(E) Install a window between the brewery and an adjacent
restaurant that allows the public and the permittee to view both
premises.
(F) Install a doorway or other opening between the brewery
and an adjacent restaurant that provides the public and the
permittee with access to both premises.
(G) Sell the brewery's beer by the glass for consumption on the
premises. Brewers permitted to sell beer by the glass under
this clause must make food available for consumption on the
premises. A brewer may comply with the requirements of this
clause by doing any of the following:
(i) Allowing a vehicle of transportation that is a food
establishment (as defined in IC 16-18-2-137) to serve food
near the brewer's licensed premises.
(ii) Placing menus in the brewer's premises of restaurants
that will deliver food to the brewery.
(iii) Providing food prepared at the brewery.
(H) Sell and deliver beer to a consumer at the licensed
premises of the brewer or at the residence of the consumer.
Notwithstanding IC 7.1-1-3-20, the licensed premises may
include the brewery parking lot or an area adjacent to the
brewery that may only be used for the purpose of conveying
alcoholic beverages and other nonalcoholic items to a
customer subject to section 10 of this chapter, and may not be
used for point of sale purposes or any other purpose. The
delivery to a consumer may be made only in a quantity at any
one (1) time of not more than one-half (1/2) barrel, but the
beer may be contained in bottles or other permissible
containers.
(I) Sell the brewery's beer as authorized by this section for
carryout on Sunday in a quantity at any one (1) time of not
more than five hundred seventy-six (576) ounces. A brewer's
beer may be sold under this clause at any address for which the
brewer holds a brewer's permit issued under this chapter if the
HB 1276—LS 7030/DI 87 48
address is located within the same city boundaries in which the
beer was manufactured.
(J) With the approval of the commission, participate:
(i) individually; or
(ii) with other permit holders under this chapter, holders of
artisan distiller's permits, holders of farm winery permits, or
any combination of holders described in this item;
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 clause to
participate in a trade show or exposition for more than
forty-five (45) sixty (60) days in a calendar year.
(K) Store or condition beer in a secure building that is:
(i) separate from the brewery; and
(ii) owned or leased by the permit holder.
(L) Transfer beer from a building described in clause (K) back
to the brewery.
(M) Sell or transfer beer directly to a beer wholesaler from a
building described in clause (K), but may not sell or transfer
beer from the building to any other permittee or a consumer.
The brewer shall maintain an adequate written record of the
beer transferred:
(i) between the brewery and the separate building; and
(ii) from the separate building to the wholesaler.
(N) Sell the brewery's beer to the holder of a supplemental
caterer's permit issued under IC 7.1-3-9.5 for on-premises
consumption only at an event that is held outdoors on property
that is contiguous to the brewery as approved by the
commission.
(O) Receive liquor from the holder of a distiller's permit issued
under IC 7.1-3-7 or the holder of an artisan distiller's permit
under IC 7.1-3-27 that is located in the same county as the
brewery for the purpose of carbonating and canning the liquor.
Upon the completion of canning of the liquor, the product
must be returned to the original production facility within
forty-eight (48) hours. The activity under this clause is not an
interest under IC 7.1-5-9.
(P) Receive beer from another permit holder under this
subdivision for the purpose of bottling and packaging the beer.
Upon completion of bottling and packaging the beer, the
HB 1276—LS 7030/DI 87 49
product must be returned to the original permit holder who
manufactured the beer. The number of barrels of beer that a
permit holder receives, bottles, and packages under this clause
may not exceed the number of barrels of beer that the permit
holder produced from raw materials at the licensed premises
of the permit holder in the same calendar year. The activity
under this clause is not an interest under IC 7.1-5-9.
(Q) Sell or transfer beer directly to a food manufacturer
located in Indiana that is registered with the federal Food and
Drug Administration for the purpose of adding or integrating
the beer into a product or recipe.
(R) Manufacture beer for another permit holder under this
subdivision. Upon completion of manufacturing the beer, the
product must be transported to the permit holder for which the
beer was manufactured. To qualify under this clause:
(i) the permit holder for which the beer is manufactured
must have manufactured not less than forty (40) barrels of
beer produced from raw materials at the licensed premises
of the permit holder in the previous calendar year; and
(ii) the number of barrels of beer that a permit holder
manufactures under this clause may not exceed the number
of barrels of beer that the permit holder produced from raw
materials at the licensed premises of the permit holder in the
same calendar year.
All records required by the federal Alcohol and Tobacco Tax
and Trade Bureau regarding the number of barrels of beer
produced from raw materials at the licensed premises of a
permit holder must be made available to the commission upon
request. The activity under this clause is not an interest under
IC 7.1-5-9.
(6) If the brewer's brewery manufactures more than ninety
thousand (90,000) barrels of beer in a calendar year for sale or
distribution within Indiana, the permit holder may own a portion
of the corporate stock of another brewery that:
(A) is located in the same county as the brewer's brewery;
(B) manufactures less than ninety thousand (90,000) barrels of
beer in a calendar year; and
(C) is the proprietor of a restaurant that operates under
subdivision (5).
(7) Provide complimentary samples of beer that are:
(A) produced by the brewer; and
(B) offered to consumers for consumption on the brewer's
HB 1276—LS 7030/DI 87 50
premises.
(8) Own a portion of the corporate stock of a sports corporation
that:
(A) manages a minor league baseball stadium located in the
same county as the brewer's brewery; and
(B) holds a beer retailer's permit, a wine retailer's permit, or a
liquor retailer's permit for a restaurant located in that stadium.
(9) For beer described in IC 7.1-1-2-3(a)(4):
(A) may allow transportation to and consumption of the beer
on the licensed premises; and
(B) may not sell, offer to sell, or allow sale of the beer on the
licensed premises.".
Page 3, between lines 12 and 13, begin a new paragraph and insert:
"SECTION 5. IC 7.1-3-5-3, AS AMENDED BY P.L.194-2021,
SECTION 33, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 3. (a) The holder of a beer dealer's permit shall be
entitled to purchase beer for sale under the permit only from a
permittee entitled to sell to a beer dealer under this title.
(b) A beer dealer shall be entitled to possess beer and sell it at retail
to a customer in permissible containers only.
(c) A beer dealer may not sell beer by the drink nor for consumption
on the licensed premises nor shall a beer dealer allow it to be consumed
on the licensed premises.
(d) Except as provided in subsection (e), a beer dealer shall be
entitled to sell beer to a customer and deliver it in permissible
containers to the customer on the licensed premises, or to the
customer's residence or office. A beer dealer shall not be entitled to sell
and deliver beer on the street or at the curb outside the licensed
premises, nor shall a beer dealer be entitled to sell beer at a place other
than the licensed premises. A beer dealer shall not be entitled to sell
beer and deliver beer for carry-out, or for delivery to a customer's
residence or office, in a quantity that exceeds eight hundred sixty-four
(864) ounces in a single transaction. This delivery may only be
performed by the permit holder or an employee who holds an employee
permit. However, notwithstanding IC 7.1-5-10-11, a beer dealer who
is licensed pursuant to IC 7.1-3-10-4 shall be entitled to sell and deliver
warm or cold beer for carry-out, or for delivery to a customer's
residence, office, or a designated location in barrels or other
commercial containers that do not exceed two thousand sixteen (2,016)
ounces per container. 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.
HB 1276—LS 7030/DI 87 51
(e) Unless a beer dealer is a grocery store or drug store, a beer
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 beer 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 patron who is outside the licensed premises.".
Page 5, delete lines 16 through 19.
Page 5, line 20, delete "(6)" and insert "(5)".
Page 5, line 23, delete "(7)" and insert "(6)".
Page 6, line 6, delete "Two thousand five hundred (2,500)" and
insert "Five thousand (5,000)".
Page 6, line 8, delete "Two thousand five hundred (2,500)" and
insert "Five thousand (5,000)".
Page 6, line 10, delete "Five hundred (500)" and insert "One
thousand (1,000)".
Page 7, delete lines 8 through 42.
Delete page 8.
Page 9, delete lines 1 through 17.
Page 9, line 23, strike "IC 7.1-3-12-5(a)(12);" and insert "IC
7.1-3-12-5(a)(11);".
Page 9, delete lines 40 through 42.
Page 10, delete lines 1 through 5, begin a new paragraph and insert:
"SECTION 17. IC 7.1-3-10-7, AS AMENDED BY P.L.194-2021,
SECTION 40, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 7. (a) The holder of a liquor dealer's permit shall
be entitled to purchase liquor only from a permittee entitled to sell to
a liquor dealer under this title.
(b) A liquor dealer shall be entitled to possess liquor and sell it at
retail in its original package to a customer only for consumption off the
licensed premises.
(c) A liquor dealer may deliver liquor only in permissible containers
to a customer's residence or office. in a quantity that does not exceed
twelve (12) quarts at any one (1) time. This delivery may only be
performed by the permit holder or an employee who holds an employee
permit. However, a liquor dealer who is licensed under IC 7.1-3-10-4
may deliver liquor in permissible containers to a customer's residence,
office, or designated location. 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.
(d) A liquor 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. However, a liquor dealer that is
HB 1276—LS 7030/DI 87 52
a drug store may sell prescription drugs and health and beauty aids
through a window in the licensed premises to a patron who is outside
the licensed premises.".
Page 11, strike lines 3 through 5.
Page 11, line 6, strike "(5)" and insert "(4)".
Page 11, line 16, strike "(6)" and insert "(5)".
Page 11, line 17, strike "(7)" and insert "(6)".
Page 11, line 20, strike "(8)" and insert "(7)".
Page 11, line 25, strike "(9)" and insert "(8)".
Page 11, line 27, strike "(10)" and insert "(9)".
Page 11, line 29, strike "(11)" and insert "(10)".
Page 11, line 32, strike "(12)" and insert "(11)".
Page 11, line 37, strike "(13)" and insert "(12)".
Page 12, line 14, strike "(14)" and insert "(13)".
Page 12, line 24, strike "(15)" and insert "(14)".
Page 12, line 26, delete "(16)" and insert "(15)".
Page 13, line 15, strike "forty-five (45)" and insert "sixty (60)".
Page 14, delete lines 40 through 42, begin a new paragraph and
insert:
"SECTION 22. 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 who is licensed under IC 7.1-3-10-4 may
deliver wine only in permissible containers to a customer's residence,
office, or designated location. This delivery may only be performed by
the permit holder or an employee who holds an employee permit. The
HB 1276—LS 7030/DI 87 53
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.".
Delete pages 15 through 16.
Page 17, delete lines 1 through 7.
Page 17, between lines 21 and 22, begin a new paragraph and insert:
"SECTION 18. IC 7.1-3-20-8.7 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 8.7. (a) A restaurant
permittee that:
(1) is located in local government jurisdiction in which
smoking in the manner described in this section is permitted;
or
(2) has obtained the written permission of the local
government entity responsible for enforcing local smoking
ordinances;
may establish on the premises a segregated room attached to an
outdoor patio in which cigar consumption may occur.
(b) The following apply to a segregated room under subsection
(a):
(1) The room may not be accessible to individuals less than
twenty-one (21) years of age.
(2) The room must be:
(A) separated from the rest of the facility by a closed door;
and
(B) connected to an outdoor patio area.
(3) The room may not be connected to the restaurant dining
room.
(4) All doors to the room must contain a sign stating that
individuals less than twenty-one (21) years of age are
prohibited from entering the room.
(5) The room must be well ventilated.
(6) Smoking in the room must be limited to cigar smoking.
(c) This section does not modify other statutes concerning the
sale of cigars and tobacco.".
Page 19, between lines 34 and 35, begin a new paragraph and insert:
"SECTION 27. IC 7.1-3-20-29, AS AMENDED BY P.L.145-2024,
SECTION 13, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 29. (a) As used in this section, "food hall" means:
(1) for a food hall described in subsection (c) or (d), the
premises:
(1) (A) located within a retail shopping and food service
HB 1276—LS 7030/DI 87 54
district; and
(2) (B) to which a master permit is issued under this section;
or
(2) for a food hall described in subsection (e), the premises to
which a master permit is issued under this section.
(b) As used in this section, "master permit" means a food hall master
permit issued under this section.
(c) Except as provided in subsection (d), the commission may issue
a master permit, which is a three-way retailer's permit for on premises
consumption, to a food hall located in a retail shopping and food
service district that meets the following requirements:
(1) The district consists of an area that:
(A) has been redeveloped, renovated, or environmentally
remediated in part with grants from the federal, state, or local
government under IC 36-7-11; and
(B) is entirely located within an incorporated city or town.
(2) The district consists of land and a building or group of
buildings that are part of a common development.
(3) The district is located within a locally designated historic
district under IC 36-7-11 established by a city or town ordinance.
(4) The district contains at least one (1) building that:
(A) is on the list of the National Register for Historic Places or
qualifies as a historic building worthy of preservation under
IC 36-7-11; and
(B) has been approved for present commercial use by the local
historic preservation commission of the city or town.
(d) Subsection (c)(3) and (c)(4) does not apply to a food hall that
meets one (1) of the following descriptions:
(1) The food hall:
(A) is located within a certified technology park established
under IC 36-7-32; and
(B) operates within a previously vacant building that was, or
within a complex of buildings that were:
(i) placed in service at least twenty-five (25) years prior to
the redevelopment of the building or buildings; and
(ii) owned by a unit of local government or a public
charitable trust prior to redevelopment.
(2) The food hall:
(A) contains not less than ten (10) distinct nonaffiliated food
and beverage vendors; and
(B) is located within a mixed use development or
redevelopment project with a total investment of at least one
HB 1276—LS 7030/DI 87 55
hundred million dollars ($100,000,000).
(e) The commission may issue a master permit, which is a
three-way retailer's permit for on premises consumption, to a food
hall that:
(1) is located within a consolidated city;
(2) is located within five hundred (500) feet of a building that:
(A) is on the list of the National Register for Historic
Places; or
(B) qualifies as a historic building worthy of preservation
under IC 36-7-11.1; and
(3) contains not less than five (5) distinct nonaffiliated food
and beverage vendors.
(e) (f) The commission may issue a master permit to the owner or
developer of a food hall. The food hall constitutes a single permit
premises that:
(1) contains not less than:
(A) seven (7), distinct, nonaffiliated retail food and beverage
vendors, if the food hall is described in subsection (c) or (d);
or
(B) five (5), distinct, nonaffiliated retail food and beverage
vendors, if the food hall is described in subsection (e);
each of which may apply for a food hall vendor permit under
section 30 of this chapter; and
(2) has a seating capacity of the type traditionally designed for
food and drink for at least one hundred (100) people.
(f) (g) An applicant for a master permit shall post notice and appear
in front of the local board in which the permit premises is situated. The
local board shall determine the eligibility of the applicant under this
section and hear evidence in support of or against the master permit
location. A master permit may not be transferred to a location outside
the food hall permit premises. A permit that is inactive for more than
six (6) months shall revert back to the commission or may be deposited
with the commission under IC 7.1-3-1.1 with the commission's
permission.
(g) (h) A master permit authorized by this section may be issued
without regard to the proximity provisions of IC 7.1-3-21-11 or the
quota provisions of IC 7.1-3-22.
(h) (i) The commission may not require physical separation between
a bar area and a dining area in a food hall.
SECTION 27. IC 7.1-3-20-32 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2025]: Sec. 32. (a) For purposes of this
HB 1276—LS 7030/DI 87 56
section, "permittee" means the holder of a permit issued under
IC 7.1-3-20-16(b).
(b) A publicly owned airport may submit an application to the
commission to designate one (1) or more refreshment areas within
the passenger terminal complex of the airport. If the commission
receives an application under this subsection, the commission shall
issue to the applicant an airport refreshment area designation.
(c) The following apply to an airport refreshment area
designation issued under subsection (b):
(1) Subject to subdivisions (2) through (4), a person may:
(A) exit the licensed premises of a permittee located within
the designated refreshment area with an open container of
an alcoholic beverage; and
(B) consume the alcoholic beverage within the refreshment
area.
(2) The airport may establish:
(A) the boundaries; and
(B) restrictions on the operation;
of the refreshment area.
(3) A person may not consume an alcoholic beverage within
a refreshment area that was purchased outside of the
refreshment area.
(4) IC 7.1-5-8-5 applies to the refreshment area.
(d) The commission may issue an airport refreshment area
designation without publication of notice or investigation before a
local board. The commission may not charge a fee for issuing the
designation.
(e) In accordance with IC 7.1-2-3-3, the commission shall
prescribe the form for a publicly owned airport to apply for an
airport refreshment area designation.
SECTION 22. IC 7.1-3-23-16, AS AMENDED BY P.L.194-2021,
SECTION 57, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 16. The commission may revoke:
(1) a wholesaler's, retailer's, or dealer's permit of any type;
(2) the permit of a farm winery that sells and delivers under
IC 7.1-3-12-5(a)(14); IC 7.1-3-12-5(a)(13); or
(3) the permit of an artisan distillery that sells and delivers under
IC 7.1-3-27-8(a)(11);
after final judgment of conviction for an offense defined in this title.
The commission may revoke the permit of a holder listed in
subdivision (1) through (3) upon a second violation of a provision of
this title whether a judgment of conviction ensues or not.
HB 1276—LS 7030/DI 87 57
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:
(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.
HB 1276—LS 7030/DI 87 58
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) sixty (60) 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)
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) 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 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.
(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
HB 1276—LS 7030/DI 87 59
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.
(e) An artisan distiller who knowingly or intentionally violates this
section commits a Class B misdemeanor.".
Page 23, between lines 35 and 36, begin a new line block indented
and insert:
"(34) A refreshment area designated under IC 7.1-3-20-32.".
Page 24, between lines 34 and 35, begin a new line block indented
and insert:
"(5) A person who:
(A) owns or operates a private or public restaurant or
place of public or private entertainment within a
refreshment area designated under IC 7.1-3-20-32; and
(B) permits another person to come into the establishment:
(i) within the refreshment area; and
(ii) with an alcoholic beverage purchased from a
permittee (as defined in IC 7.1-3-20-32) for consumption
in the establishment by that person or another.".
Page 26, between lines 17 and 18, begin a new paragraph and insert:
"(f) This section does not apply to a person who brings an
alcoholic beverage:
(1) purchased from a permittee (as defined in IC 7.1-3-20-32);
and
(2) into a restaurant or place of public entertainment within
a refreshment area designated under IC 7.1-3-20-32.
SECTION 27. IC 7.1-5-10-12, AS AMENDED BY P.L.194-2021,
SECTION 65, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 12. (a) Except as provided in subsections (b)
through (d) and subsection (g), it is unlawful for a permittee to sell,
offer to sell, purchase or receive, an alcoholic beverage for anything
other than cash. A permittee who extends credit in violation of this
section shall have no right of action on the claim.
HB 1276—LS 7030/DI 87 60
(b) A permittee may credit to a purchaser the actual price charged
for a package or an original container returned by the original
purchaser as a credit on a sale and refund to a purchaser the amount
paid by the purchaser for a container, or as a deposit on a container, if
it is returned to the permittee.
(c) A manufacturer may extend usual and customary credit for
alcoholic beverages sold to a customer who maintains a place of
business outside this state when the alcoholic beverages are actually
shipped to a point outside this state.
(d) An artisan distiller, a distiller, a farm winery, or a liquor or wine
wholesaler may extend credit on liquor, flavored malt beverages, and
wine sold to a permittee for a period of fifteen (15) days from the date
of invoice, date of invoice included. However, if the fifteen (15) day
period passes without payment in full, the:
(1) wholesaler;
(2) farm winery that sells and delivers under IC 7.1-3-12-5(a)(14);
IC 7.1-3-12-5(a)(13); or
(3) artisan distillery that sells and delivers under
IC 7.1-3-27-8(a)(11);
shall sell to that permittee on a cash on delivery basis only.
(e) A person who knowingly or intentionally violates this section
commits a Class B misdemeanor.
(f) Nothing in this section may be construed to prohibit a hotel,
restaurant, caterer, or a club that is not open to the general public from
extending credit to a consumer purchasing alcohol for personal use at
any time.
(g) Nothing in this section may be construed to prohibit a retailer or
dealer from accepting a:
(1) credit card;
(2) debit card;
(3) charge card; or
(4) stored value card;
from a consumer purchasing alcohol for personal use.
SECTION 28. IC 7.1-5-12-5, AS AMENDED BY P.L.145-2024,
SECTION 21, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 5. (a) Except as provided in subsection (c) and
subject to section 13 of this chapter, smoking may be allowed in the
following:
(1) A horse racing facility operated under a permit under
IC 4-31-5 and any other permanent structure on land owned or
leased by the owner of the facility that is adjacent to the facility.
(2) A riverboat (as defined in IC 4-33-2-17) and any other
HB 1276—LS 7030/DI 87 61
permanent structure that is:
(A) owned or leased by the owner of the riverboat; and
(B) located on land that is adjacent to:
(i) the dock to which the riverboat is moored; or
(ii) the land on which the riverboat is situated in the case of
a riverboat described in IC 4-33-2-17(2).
(3) A facility that operates under a gambling game license under
IC 4-35-5 and any other permanent structure on land owned or
leased by the owner of the facility that is adjacent to the facility.
(4) A satellite facility licensed under IC 4-31-5.5.
(5) An establishment owned or leased by a business that meets the
following requirements:
(A) The business was in business and permitted smoking on
December 31, 2012.
(B) The business prohibits entry by an individual who is less
than twenty-one (21) years of age.
(C) The owner or operator of the business holds a beer, liquor,
or wine retailer's permit.
(D) The business limits smoking in the establishment to
smoking with a waterpipe or hookah device.
(E) During the preceding calendar year, at least ten percent
(10%) of the business's annual gross income was from the sale
of loose tobacco for use in a waterpipe or hookah device.
(F) The person in charge of the business posts in the
establishment conspicuous signs that display the message that
cigarette smoking is prohibited.
(6) An establishment owned or leased by a business that meets the
following requirements:
(A) The business prohibits entry by an individual who is less
than twenty-one (21) years of age.
(B) The owner or operator of the business holds a beer, liquor,
or wine retailer's permit.
(C) The business limits smoking in the establishment to cigar
smoking.
(D) During the preceding calendar year, at least ten percent
(10%) of the business's annual gross income was from the sale
of cigars and the rental of onsite humidors.
(E) The person in charge of the business posts in the
establishment conspicuous signs that display the message that
cigarette smoking is prohibited.
(7) A premises owned or leased by and regularly used for the
activities of a business that meets all of the following:
HB 1276—LS 7030/DI 87 62
(A) The business is exempt from federal income taxation
under 26 U.S.C. 501(c).
(B) The business:
(i) meets the requirements to be considered a club under
IC 7.1-3-20-1; or
(ii) is a fraternal club (as defined in IC 7.1-3-20-7).
(C) The business provides food or alcoholic beverages only to
its bona fide members and their guests.
(D) The business:
(i) provides a separate, enclosed, designated smoking room
or area that is adequately ventilated to prevent migration of
smoke to nonsmoking areas of the premises;
(ii) allows smoking only in the room or area described in
item (i);
(iii) does not allow an individual who is less than twenty-one
(21) years of age to enter into the room or area described in
item (i); and
(iv) allows a guest in the smoking room or area described in
item (i) only when accompanied by a bona fide member of
the business.
(8) A retail tobacco store used primarily for the sale of tobacco
products and tobacco accessories that meets the following
requirements:
(A) The owner or operator of the store holds a valid tobacco
sales certificate issued under IC 7.1-3-18.5.
(B) The store prohibits entry by an individual who is less than
twenty-one (21) years of age.
(C) The sale of products other than tobacco products and
tobacco accessories is merely incidental.
(D) The sale of tobacco products accounts for at least
eighty-five percent (85%) of the store's annual gross sales.
(E) Food or beverages are not sold in a manner that requires
consumption on the premises, and there is not an area set aside
for customers to consume food or beverages on the premises.
(9) A bar or tavern:
(A) for which a permittee holds:
(i) a beer retailer's permit under IC 7.1-3-4;
(ii) a liquor retailer's permit under IC 7.1-3-9; or
(iii) a wine retailer's permit under IC 7.1-3-14;
(B) that does not employ an individual who is less than
eighteen (18) years of age;
(C) that does not allow an individual who:
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(i) is less than twenty-one (21) years of age; and
(ii) is not an employee of the bar or tavern;
to enter any area of the bar or tavern; and
(D) that is not located in a business that would otherwise be
subject to this chapter.
(10) A cigar manufacturing facility that does not offer retail sales.
(11) A premises of a cigar specialty store to which all of the
following apply:
(A) The owner or operator of the store holds a valid tobacco
sales certificate issued under IC 7.1-3-18.5.
(B) The sale of tobacco products and tobacco accessories
account for at least fifty percent (50%) of the store's annual
gross sales.
(C) The store has a separate, enclosed, designated smoking
room that is adequately ventilated to prevent migration of
smoke to nonsmoking areas.
(D) Smoking is allowed only in the room described in clause
(C).
(E) Individuals who are less than twenty-one (21) years of age
are prohibited from entering into the room described in clause
(C).
(F) Cigarette smoking is not allowed on the premises of the
store.
(G) The owner or operator of the store posts a conspicuous
sign on the premises of the store that displays the message that
cigarette smoking is prohibited.
(H) The store does not prepare any food or beverage that
would require a certified food protection manager under
IC 16-42-5.2.
(12) The premises of a business that is located in the business
owner's private residence (as defined in IC 3-5-2-42.5) if the only
employees of the business who work in the residence are the
owner and other individuals who reside in the residence.
(13) That part of a hotel designated as an outside patio or terrace
that contains a bar under IC 7.1-3-20-27, to which all of the
following apply:
(A) The designated smoking area on the outside patio or
terrace is delineated from the rest of the outside patio or
terrace by a barrier that is at least eighteen (18) inches in
height.
(B) The designated smoking area is located at least twenty (20)
feet from any entrance to the hotel.
HB 1276—LS 7030/DI 87 64
(C) Individuals less than twenty-one (21) years of age are not
allowed in the designated smoking area.
(14) A room located on the premises of a restaurant under
IC 7.1-3-20-8.7 that meets all of the requirements under
IC 7.1-3-20-8.7.
(b) The owner, operator, manager, or official in charge of an
establishment or premises in which smoking is allowed under this
section shall post conspicuous signs in the establishment that read
"WARNING: Smoking Is Allowed In This Establishment" or other
similar language.
(c) This section does not allow smoking in the following enclosed
areas of an establishment or premises described in subsection (a)(1)
through (a)(11):
(1) Any hallway, elevator, or other common area where an
individual who is less than twenty-one (21) years of age is
permitted.
(2) Any room that is intended for use by an individual who is less
than twenty-one (21) years of age.
(d) The owner, operator, or manager of an establishment or premises
that is listed under subsection (a) and that allows smoking shall provide
a verified statement to the commission that states that the establishment
or premises qualifies for the exemption. The commission may require
the owner, operator, or manager of an establishment or premises to
provide documentation or additional information concerning the
exemption of the establishment or premises.".
Page 27, after line 4, begin a new paragraph and insert:
"SECTION 35. [EFFECTIVE JULY 1, 2025] (a) The legislative
council is urged to assign to the interim study committee on public
policy established by IC 2-5-1.3-4(15) during the 2025 legislative
interim the task of studying third party delivery of beer, wine, and
liquor to consumers by alcoholic beverage dealers and retailers.
(b) This SECTION expires January 1, 2026.
SECTION 32. An emergency is declared for this act.".
Renumber all SECTIONS consecutively.
and when so amended that said bill do pass.
(Reference is to HB 1276 as introduced.)
MANNING
Committee Vote: yeas 12, nays 0.
HB 1276—LS 7030/DI 87