LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
FISCAL IMPACT STATEMENT
LS 7030 NOTE PREPARED: Feb 6, 2025
BILL NUMBER: HB 1276 BILL AMENDED: Feb 4, 2025
SUBJECT: Various Alcoholic Beverage and Tobacco Matters.
FIRST AUTHOR: Rep. Manning BILL STATUS: 2
nd
Reading - 1
st
House
FIRST SPONSOR:
FUNDS AFFECTED:XGENERAL IMPACT: State & Local
XDEDICATED
FEDERAL
Summary of Legislation: This bill modifies the insurance coverage requirements that apply to specified
permit holders.
The bill 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.
The bill 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.
The bill increases, from 45 to 60 days, the number of days in a calendar year the Alcohol and Tobacco
Commission may approve for a small brewery, farm winery, or artisan distillery to participate in a trade show
or exposition.
The bill establishes requirements regarding permittee donations of alcoholic beverages to qualified
organizations who are permittees conducting an event.
The bill 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. It
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.
It 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. It also repeals a limitation on the
maximum quantity of wine that a wine dealer may sell in a single transaction.
The bill provides that if a tobacco certificate holder sells or distributes tobacco products at a location where
criminal conduct occurs involving illegal substances or contraband, the cost of disposal of the substances or
HB 1276 1 contraband may be part of the sanctions imposed on the holder.
The bill 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.
The bill 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.
The bill 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.
The bill allows the commission to issue a food hall master permit to a food hall that meets certain
requirements.
The bill 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. It also specifies restrictions that apply to an airport refreshment area designation.
The bill allows a minor to be in a small brewery and the brewery's restaurant, if accompanied by an adult.
The bill makes it a Class C misdemeanor to sell a nicotine analogue.
The bill also 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.
Effective Date: Upon passage; July 1, 2025.
Explanation of State Expenditures: Alcohol and Tobacco Commission (ATC): The ATC would have an
increase in workload to administer and enforce the bill’s provisions. It would need to update insurance
requirements, issue permits, and create applications for airport designated refreshment areas. The bill’s
requirements are within the ATC’s routine administrative functions and should be able to be implemented
with no additional appropriations, assuming near customary agency staffing and resource levels.
Right-of-way: The bill may increase workload for the Indiana Department of Transportation to provide
written permission for a permittee to locate a patio or terrace within a state controlled right-of-way. The bill’s
requirements are within the agency’s routine administrative functions and should be able to be implemented
with no additional appropriations, assuming near customary agency staffing and resource levels.
Study of Third Party Delivery: If the committee were to hold additional meetings to address this topic, there
would be additional expenditures for legislator per diem and travel reimbursement for the committee
members. Any additional expenditures must be within the committee’s budget, which is established by the
Legislative Council.
Explanation of State Revenues: Food Hall: The bill may increase revenue from food hall permits by
allowing the ATC to issue a master food hall permit in Indianapolis near a certain historic building. The food
hall must contain not less than five distinct nonaffiliated food and beverage vendors. The initial fee for a food
hall master permit is $50,000, and the annual renewal fee is $5,000. The initial fee for a food hall vendor’s
HB 1276 2 permit is $2,500 if the space is less than 1,000 square feet or $5,000 if the space is less 2,000 square feet.
Annual renewal fees for food hall vendor’s permits are $1,000. Revenue from the food hall permits is
deposited into the Enforcement and Administration Fund.
Permit for Theaters: The bill allows theaters within a historic district in the city of Logansport to apply for
a three-way permit. Permit fee revenue would increase if the ATC issues additional permits. Annual permit
fees are $1,000 if beer, wine, and liquor are served. Revenue is distributed to the General Fund (37%), the
city or town in which the licensed premises are located (33%), and the Enforcement and Administration Fund
(30%).
Permits for Certain Public Facilities: The bill may increase permit revenue to the extent that local
government entities permit the retail sale of alcoholic beverages in certain public facilities if a person has
an agreement to act as a conscessionaire for the permitted premises. Permit fee revenue would increase if
the ATC issues additional permits. Annual permit fees are $1,000 if beer, wine, and liquor are served.
Revenue is distributed to the General Fund (37%), the city or town in which the licensed premises are located
(33%), and the Enforcement and Administration Fund (30%).
Disposal Expenditures: The ATC may have an increase in revenue from including disposal costs in sanctions
on tobacco sales certificate holders. The increase in revenue would offset the cost of disposal of illegal
substances or contraband.
ATC Penalty: The bill provides an exception for a small brewery and the brewery’s restaurant to the
prohibition of minors being allowed in a place where alcoholic beverages are sold and alcoholic beverages
brought into an establishment that are purchased by or donated to a qualified organization that is conducting
an event. It allows a three-way permit holder at an airport to sell at 5 a.m. instead of 7 a.m. The holder of a
farm winery permit may no longer sell the winery’s wine to consumers by the bottle at a farmers’ market that
is operated on a nonprofit basis. In addition, it removes the limits on quantity for delivery for a beer and
liquor dealer and removes the limit for maximum quantity of wine that a wine dealer permit may sell in a
single transaction.
To the extent that the bill decreases the number of permittees found to be in violation, revenue from penalty
fees could decrease. The ATC can collect a maximum penalty of $4,000, which is deposited in the
Enforcement and Administration Fund. Any decrease in penalties is expected to be small.
Penalty Provision: Currently, it is a crime for the following actions:
(1) Class C infraction for a minor to be in and for a parent to take a minor into a place where
alcoholic beverages are sold, with several exceptions;
(2) Class C misdemeanor for a permittee to recklessly permit a minor to be in a prohibited place and
taking liquor into restaurants;
(3) Class B misdemeanor for taking alcoholic beverages on licensed premises and serving setups;
and
(4) Class B infraction for smoking in a prohibited area.
In addition, the bill makes it a Class C misdemeanor to sell a nicotine analogue.
The bill’s provisions could affect the number of criminal penalties and would have an indeterminable impact
on General Fund revenue. Any change in revenue is likely to be small. The maximum judgment for a Class
C infraction and a Class C misdemeanor is $500. The maximum judgment for a Class B infraction and a
HB 1276 3 Class B misdemeanor is $1,000, which is deposited in the state General Fund. The following linked
document describes the fees and distribution of the revenue: Court fees imposed in criminal, juvenile, and
civil violation cases.
Explanation of Local Expenditures: Right-of-way: The bill may increase workload for a local agency that
manages a right-of-way to provide written permission for a permittee. The bill’s requirements are within the
agency’s routine administrative functions and should be able to be implemented with no additional
appropriations, assuming near customary agency staffing and resource levels.
Explanation of Local Revenues: Cigar Smoking Area: The bill may increase workload for a local
government entity to the extent that a restaurant permittee asks for written permission for a segregated room
attached to an outdoor patio for cigar consumption. The bill’s requirements are within the agency’s routine
administrative functions and should be able to be implemented with no additional appropriations, assuming
near customary agency staffing and resource levels.
Penalty Provision: The bill could have an indeterminable but likely minor impact on revenue collected by
certain local units. The following linked document describes the fees and distribution of the revenue: Court
fees imposed in criminal, juvenile, and civil violation cases.
State Agencies Affected: Alcohol and Tobacco Commission; Indiana Department of Transportation;
General Assembly.
Local Agencies Affected: Local agencies that manage right-of-ways; Local units; Trial courts, local law
enforcement agencies; City of Indianapolis; City of Logansport.
Information Sources: Legislative Services Agency. Indiana Handbook of Taxes, Revenues, and
Appropriations, FY 2024. Indiana Supreme Court, Indiana Trial Court Fee Manual.
Fiscal Analyst: Nate Bodnar, 317-234-9476.
HB 1276 4