*EH1276.1*
April 11, 2025
ENGROSSED
HOUSE BILL No. 1276
_____
DIGEST OF HB 1276 (Updated April 8, 2025 4:51 pm - DI 137)
Citations Affected: IC 7.1-3; IC 7.1-5.
Synopsis: Various alcoholic beverage matters. Allows a craft
manufacturer to participate in a farmers' market, subject to certain
conditions. Allows a liquor retailer and a liquor dealer to serve samples
of mixed beverages. Increases, from 45 to 75 days, the number of days
in a calendar year the alcohol and tobacco commission (commission)
may approve for a craft manufacturer to participate in a trade show or
exposition. 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
(Continued next page)
Effective: July 1, 2025.
Manning, Clere, Shonkwiler
(SENATE SPONSORS — ALTING, WALKER K, JACKSON L, SPENCER,
NIEZGODSKI)
January 13, 2025, read first time and referred to Committee on Public Policy.
February 4, 2025, amended, reported — Do Pass.
February 6, 2025, read second time, ordered engrossed.
February 7, 2025, engrossed.
February 13, 2025, read third time, passed. Yeas 83, nays 9.
SENATE ACTION
February 20, 2025, read first time and referred to Committee on Public Policy.
April 10, 2025, amended, reported favorably — Do Pass.
EH 1276—LS 7030/DI 87 Digest Continued
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 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.
EH 1276—LS 7030/DI 87EH 1276—LS 7030/DI 87 April 11, 2025
First Regular Session of the 124th General Assembly (2025)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
Constitution) is being amended, the text of the existing provision will appear in this style type,
additions will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional
provision adopted), the text of the new provision will appear in this style type. Also, the
word NEW will appear in that style type in the introductory clause of each SECTION that adds
a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
between statutes enacted by the 2024 Regular Session of the General Assembly.
ENGROSSED
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 7.1-3-2-7, AS AMENDED BY P.L.26-2024,
2 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3 JULY 1, 2025]: Sec. 7. The holder of a brewer's permit or an
4 out-of-state brewer holding either a primary source of supply permit or
5 an out-of-state brewer's permit may do the following:
6 (1) Manufacture beer.
7 (2) Place beer in containers or bottles.
8 (3) Transport beer.
9 (4) Sell and deliver beer to a person holding a beer wholesaler's
10 permit issued under IC 7.1-3-3.
11 (5) If the brewer manufactures, at all of the brewer's breweries, an
12 aggregate of not more than ninety thousand (90,000) barrels of
13 beer in a calendar year for sale or distribution within Indiana, the
14 permit holder may do the following:
15 (A) Sell and deliver a total of not more than thirty thousand
16 (30,000) barrels of beer in a calendar year to a person holding
17 a retailer or a dealer permit under this title. The total number
EH 1276—LS 7030/DI 87 2
1 of barrels of beer that the permit holder may sell and deliver
2 under this clause in a calendar year may not exceed thirty
3 thousand (30,000) barrels of beer.
4 (B) Be the proprietor of a restaurant that is not subject to the
5 minimum gross food sales or the minimum projected food
6 sales set forth in 905 IAC 1-41-2.
7 (C) Hold a beer retailer's permit, a wine retailer's permit, or a
8 liquor retailer's permit for a restaurant established under clause
9 (B).
10 (D) Transfer beer directly from the brewery to the restaurant
11 by means of:
12 (i) bulk containers; or
13 (ii) a continuous flow system.
14 (E) Install a window between the brewery and an adjacent
15 restaurant that allows the public and the permittee to view both
16 premises.
17 (F) Install a doorway or other opening between the brewery
18 and an adjacent restaurant that provides the public and the
19 permittee with access to both premises.
20 (G) Sell the brewery's beer by the glass for consumption on the
21 premises. Brewers permitted to sell beer by the glass under
22 this clause must make food available for consumption on the
23 premises. A brewer may comply with the requirements of this
24 clause by doing any of the following:
25 (i) Allowing a vehicle of transportation that is a food
26 establishment (as defined in IC 16-18-2-137) to serve food
27 near the brewer's licensed premises.
28 (ii) Placing menus in the brewer's premises of restaurants
29 that will deliver food to the brewery.
30 (iii) Providing food prepared at the brewery.
31 (H) Sell and deliver beer to a consumer at the licensed
32 premises of the brewer or at the residence of the consumer.
33 Notwithstanding IC 7.1-1-3-20, the licensed premises may
34 include the brewery parking lot or an area adjacent to the
35 brewery that may only be used for the purpose of conveying
36 alcoholic beverages and other nonalcoholic items to a
37 customer subject to section 10 of this chapter, and may not be
38 used for point of sale purposes or any other purpose. The
39 delivery to a consumer may be made only in a quantity at any
40 one (1) time of not more than one-half (1/2) barrel, but the
41 beer may be contained in bottles or other permissible
42 containers.
EH 1276—LS 7030/DI 87 3
1 (I) Sell the brewery's beer as authorized by this section for
2 carryout on Sunday in a quantity at any one (1) time of not
3 more than five hundred seventy-six (576) ounces. A brewer's
4 beer may be sold under this clause at any address for which the
5 brewer holds a brewer's permit issued under this chapter if the
6 address is located within the same city boundaries in which the
7 beer was manufactured.
8 (J) With the approval of the commission, participate:
9 (i) individually; or
10 (ii) with other permit holders under this chapter, holders of
11 artisan distiller's permits, holders of farm winery permits, or
12 any combination of holders described in this item;
13 in a trade show or an exposition at which products of each
14 permit holder participant are displayed, promoted, and sold.
15 All of the permit holders may occupy the same tent, structure,
16 or building. The commission may not grant to a holder of a
17 permit under this chapter approval under this clause to
18 participate in a trade show or exposition for more than
19 forty-five (45) seventy-five (75) days in a calendar year.
20 (K) Store or condition beer in a secure building that is:
21 (i) separate from the brewery; and
22 (ii) owned or leased by the permit holder.
23 (L) Transfer beer from a building described in clause (K) back
24 to the brewery.
25 (M) Sell or transfer beer directly to a beer wholesaler from a
26 building described in clause (K), but may not sell or transfer
27 beer from the building to any other permittee or a consumer.
28 The brewer shall maintain an adequate written record of the
29 beer transferred:
30 (i) between the brewery and the separate building; and
31 (ii) from the separate building to the wholesaler.
32 (N) Sell the brewery's beer to the holder of a supplemental
33 caterer's permit issued under IC 7.1-3-9.5 for on-premises
34 consumption only at an event that is held outdoors on property
35 that is contiguous to the brewery as approved by the
36 commission.
37 (O) Receive liquor from the holder of a distiller's permit issued
38 under IC 7.1-3-7 or the holder of an artisan distiller's permit
39 under IC 7.1-3-27 that is located in the same county as the
40 brewery for the purpose of carbonating and canning the liquor.
41 Upon the completion of canning of the liquor, the product
42 must be returned to the original production facility within
EH 1276—LS 7030/DI 87 4
1 forty-eight (48) hours. The activity under this clause is not an
2 interest under IC 7.1-5-9.
3 (P) Receive beer from another permit holder under this
4 subdivision for the purpose of bottling and packaging the beer.
5 Upon completion of bottling and packaging the beer, the
6 product must be returned to the original permit holder who
7 manufactured the beer. The number of barrels of beer that a
8 permit holder receives, bottles, and packages under this clause
9 may not exceed the number of barrels of beer that the permit
10 holder produced from raw materials at the licensed premises
11 of the permit holder in the same calendar year. The activity
12 under this clause is not an interest under IC 7.1-5-9.
13 (Q) Sell or transfer beer directly to a food manufacturer
14 located in Indiana that is registered with the federal Food and
15 Drug Administration for the purpose of adding or integrating
16 the beer into a product or recipe.
17 (R) Manufacture beer for another permit holder under this
18 subdivision. Upon completion of manufacturing the beer, the
19 product must be transported to the permit holder for which the
20 beer was manufactured. To qualify under this clause:
21 (i) the permit holder for which the beer is manufactured
22 must have manufactured not less than forty (40) barrels of
23 beer produced from raw materials at the licensed premises
24 of the permit holder in the previous calendar year; and
25 (ii) the number of barrels of beer that a permit holder
26 manufactures under this clause may not exceed the number
27 of barrels of beer that the permit holder produced from raw
28 materials at the licensed premises of the permit holder in the
29 same calendar year.
30 All records required by the federal Alcohol and Tobacco Tax
31 and Trade Bureau regarding the number of barrels of beer
32 produced from raw materials at the licensed premises of a
33 permit holder must be made available to the commission upon
34 request. The activity under this clause is not an interest under
35 IC 7.1-5-9.
36 (S) With the approval of the commission under clause (J),
37 participate in a farmers' market at which products of the
38 permit holder are displayed, promoted, and sold. The
39 permit holder may:
40 (i) provide samples of the brewery's beer for
41 consumption on the premises, subject to a limit of three
42 (3) samples of not more than six (6) ounces per person;
EH 1276—LS 7030/DI 87 5
1 and
2 (ii) sell six (6), twelve (12), and twenty-four (24) packs of
3 twelve (12) ounce or sixteen (16) ounce cans of the
4 brewery's beer in qualified containers for consumption
5 off the premises.
6 (6) If the brewer's brewery manufactures more than ninety
7 thousand (90,000) barrels of beer in a calendar year for sale or
8 distribution within Indiana, the permit holder may own a portion
9 of the corporate stock of another brewery that:
10 (A) is located in the same county as the brewer's brewery;
11 (B) manufactures less than ninety thousand (90,000) barrels of
12 beer in a calendar year; and
13 (C) is the proprietor of a restaurant that operates under
14 subdivision (5).
15 (7) Provide complimentary samples of beer that are:
16 (A) produced by the brewer; and
17 (B) offered to consumers for consumption on the brewer's
18 premises.
19 (8) Own a portion of the corporate stock of a sports corporation
20 that:
21 (A) manages a minor league baseball stadium located in the
22 same county as the brewer's brewery; and
23 (B) holds a beer retailer's permit, a wine retailer's permit, or a
24 liquor retailer's permit for a restaurant located in that stadium.
25 (9) For beer described in IC 7.1-1-2-3(a)(4):
26 (A) may allow transportation to and consumption of the beer
27 on the licensed premises; and
28 (B) may not sell, offer to sell, or allow sale of the beer on the
29 licensed premises.
30 SECTION 2. IC 7.1-3-5-3, AS AMENDED BY P.L.194-2021,
31 SECTION 33, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
32 JULY 1, 2025]: Sec. 3. (a) The holder of a beer dealer's permit shall be
33 entitled to purchase beer for sale under the permit only from a
34 permittee entitled to sell to a beer dealer under this title.
35 (b) A beer dealer shall be entitled to possess beer and sell it at retail
36 to a customer in permissible containers only.
37 (c) A beer dealer may not sell beer by the drink nor for consumption
38 on the licensed premises nor shall a beer dealer allow it to be consumed
39 on the licensed premises.
40 (d) Except as provided in subsection (e), a beer dealer shall be
41 entitled to sell beer to a customer and deliver it in permissible
42 containers to the customer on the licensed premises, or to the
EH 1276—LS 7030/DI 87 6
1 customer's residence or office. A beer dealer shall not be entitled to sell
2 and deliver beer on the street or at the curb outside the licensed
3 premises, nor shall a beer dealer be entitled to sell beer at a place other
4 than the licensed premises. A beer dealer shall not be entitled to sell
5 beer and deliver beer for carry-out, or for delivery to a customer's
6 residence or office, in a quantity that exceeds eight hundred sixty-four
7 (864) ounces in a single transaction. This delivery may only be
8 performed by the permit holder or an employee who holds an employee
9 permit. However, notwithstanding IC 7.1-5-10-11, a beer dealer who
10 is licensed pursuant to IC 7.1-3-10-4 shall be entitled to sell and deliver
11 warm or cold beer for carry-out, or for delivery to a customer's
12 residence, office, or a designated location in barrels or other
13 commercial containers that do not exceed two thousand sixteen (2,016)
14 ounces per container. The permit holder shall maintain a written record
15 of each delivery for at least one (1) year that shows the customer's
16 name, location of delivery, and quantity sold.
17 (e) Unless a beer dealer is a grocery store or drug store, a beer
18 dealer may not sell or deliver alcoholic beverages or any other item
19 through a window in the licensed premises to a patron who is outside
20 the licensed premises. A beer dealer that is a grocery store or drug store
21 may sell any item except alcoholic beverages through a window in the
22 licensed premises to a patron who is outside the licensed premises.
23 SECTION 3. IC 7.1-3-9-11, AS AMENDED BY P.L.94-2008,
24 SECTION 32, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
25 JULY 1, 2025]: Sec. 11. (a) A liquor retailer may allow customers to
26 sample the following:
27 (1) Beer.
28 (2) Wines.
29 (3) Liquors.
30 (4) Liqueurs and cordials (as defined in 27 CFR 5.22(h)).
31 (5) Flavored malt beverages.
32 (6) Hard cider.
33 (7) Mixed beverages.
34 (b) Sampling is permitted only:
35 (1) on the liquor retailer's permit premises; and
36 (2) during the permittee's regular business hours.
37 (c) A liquor retailer may not charge for the samples provided to
38 customers.
39 (d) Sample size of wines may not exceed one (1) ounce.
40 (e) In addition to the other provisions of this section, a liquor retailer
41 who allows customers to sample liquors, liqueurs, or cordials shall
42 comply with all of the following:
EH 1276—LS 7030/DI 87 7
1 (1) A liquor retailer may allow a customer to sample only a
2 combined total of two (2) liquor, liqueur, or cordial samples per
3 day.
4 (2) Sample size of liqueurs or cordials may not exceed one-half
5 (1/2) ounce.
6 (3) Sample size of liquors may not exceed four-tenths (0.4) ounce.
7 (f) A sample size of beer, flavored malt beverage, mixed beverage,
8 or hard cider may not exceed six (6) ounces.
9 SECTION 4. IC 7.1-3-9.5-3, AS AMENDED BY P.L.105-2022,
10 SECTION 13, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
11 JULY 1, 2025]: Sec. 3. (a) The holder of a supplemental caterer's
12 permit is entitled to purchase alcoholic beverages only from:
13 (1) a brewery as described in IC 7.1-3-2-7(5)(N);
14 (2) a farm winery as described in IC 7.1-3-12-5(a)(12);
15 IC 7.1-3-12-5(a)(11); and
16 (3) any other permittee entitled to sell to the holder under this
17 title.
18 Except as provided in IC 7.1-3-6.1 and IC 7.1-3-6.2, the holder of a
19 supplemental caterer's permit is entitled to sell alcoholic beverages
20 only for on-premises consumption at those locations approved by the
21 commission and at times lawful under the holder's retailers' permits.
22 Except as provided in IC 7.1-3-6.1 and IC 7.1-3-6.2, the holder of a
23 supplemental caterer's permit is not entitled to sell alcoholic beverages
24 at wholesale, nor for carry-out or at-home delivery.
25 (b) If permitted by the state fair commission under IC 7.1-3-21-14,
26 a brewery under IC 7.1-3-2-7(5), a farm winery under IC 7.1-3-12, or
27 an artisan distillery under IC 7.1-3-27 may sell their own products to
28 consumers for consumption off the state fair grounds under
29 IC 7.1-3-21-14(b)(3), including at a location on the property of the state
30 fair grounds for which a supplemental caterer's permit has been
31 approved.
32 SECTION 5. IC 7.1-3-10-7, AS AMENDED BY P.L.194-2021,
33 SECTION 40, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
34 JULY 1, 2025]: Sec. 7. (a) The holder of a liquor dealer's permit shall
35 be entitled to purchase liquor only from a permittee entitled to sell to
36 a liquor dealer under this title.
37 (b) A liquor dealer shall be entitled to possess liquor and sell it at
38 retail in its original package to a customer only for consumption off the
39 licensed premises.
40 (c) A liquor dealer may deliver liquor only in permissible containers
41 to a customer's residence or office. in a quantity that does not exceed
42 twelve (12) quarts at any one (1) time. This delivery may only be
EH 1276—LS 7030/DI 87 8
1 performed by the permit holder or an employee who holds an employee
2 permit. However, a liquor dealer who is licensed under IC 7.1-3-10-4
3 may deliver liquor in permissible containers to a customer's residence,
4 office, or designated location. The permit holder shall maintain a
5 written record of each delivery for at least one (1) year that shows the
6 customer's name, location of delivery, and quantity sold.
7 (d) A liquor dealer may not sell or deliver alcoholic beverages or
8 any other item through a window in the licensed premises to a patron
9 who is outside the licensed premises. However, a liquor dealer that is
10 a drug store may sell prescription drugs and health and beauty aids
11 through a window in the licensed premises to a patron who is outside
12 the licensed premises.
13 SECTION 6. IC 7.1-3-10-13, AS AMENDED BY P.L.94-2008,
14 SECTION 33, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
15 JULY 1, 2025]: Sec. 13. (a) A liquor dealer permittee who is a
16 proprietor of a package liquor store may allow customers to sample the
17 following:
18 (1) Beer.
19 (2) Wines.
20 (3) Liquors.
21 (4) Liqueurs and cordials (as defined in 27 CFR 5.22(h)).
22 (5) Flavored malt beverages.
23 (6) Hard cider.
24 (7) Mixed beverage.
25 (b) Sampling is permitted:
26 (1) only on the package liquor store permit premises; and
27 (2) only during the store's regular business hours.
28 (c) No charge may be made for the samples provided to the
29 customers.
30 (d) Sample size of wines may not exceed one (1) ounce.
31 (e) In addition to the other provisions of this section, a proprietor
32 who allows customers to sample liquors, liqueurs, or cordials shall
33 comply with all of the following:
34 (1) A proprietor may allow a customer to sample not more than a
35 combined total of two (2) liquor, liqueur, or cordial samples per
36 day.
37 (2) Sample size of liqueurs or cordials may not exceed one-half
38 (1/2) ounce.
39 (3) Sample size of liquors may not exceed four-tenths (0.4) ounce.
40 (f) A sample size of beer, flavored malt beverage, mixed beverage,
41 or hard cider may not exceed six (6) ounces.
42 SECTION 7. IC 7.1-3-12-5, AS AMENDED BY P.L.194-2021,
EH 1276—LS 7030/DI 87 9
1 SECTION 42, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
2 JULY 1, 2025]: Sec. 5. (a) The following apply to the holder of a farm
3 winery permit:
4 (1) A holder is entitled to manufacture wine and to place wine
5 produced by the permit holder's farm winery in bottles or other
6 permissible containers.
7 (2) A holder is entitled to serve complimentary samples of the
8 winery's wine on the licensed premises or an outside area that is
9 contiguous to the licensed premises, as approved by the
10 commission if each employee who serves wine on the licensed
11 premises:
12 (A) holds an employee's permit under IC 7.1-3-18-9; and
13 (B) completes a server training program approved by the
14 commission.
15 (3) A holder is entitled to sell the winery's wine on the licensed
16 premises to consumers either by:
17 (A) the glass;
18 (B) the bottle;
19 (C) a box that contains a bag designed for storing and
20 dispensing wine;
21 (D) any combination of receptacles listed in clauses (A)
22 through (C); or
23 (E) any other container permissible under federal law.
24 Notwithstanding IC 7.1-1-3-20, the licensed premises may
25 include the farm winery parking lot or an area adjacent to the farm
26 winery. The parking lot or an adjacent area may only be used for
27 the purpose of conveying alcoholic beverages and other
28 nonalcoholic items to a customer subject to section 5.5 of this
29 chapter, and may not be used for point of sale purposes or any
30 other purpose.
31 (4) A holder is entitled to sell the winery's wine to consumers by
32 the bottle at a farmers' market that is operated on a nonprofit
33 basis.
34 (5) (4) A holder is entitled to sell wine by:
35 (A) the bottle;
36 (B) the can;
37 (C) a box that contains a bag designed for storing and
38 dispensing wine;
39 (D) bulk container;
40 (E) the case; or
41 (F) any combination of receptacles listed in clauses (A)
42 through (E);
EH 1276—LS 7030/DI 87 10
1 to a person who is the holder of a permit to sell wine at wholesale.
2 (6) (5) A holder is exempt from the provisions of IC 7.1-3-14.
3 (7) (6) A holder is entitled to advertise the name and address of
4 any retailer or dealer who sells wine produced by the permit
5 holder's winery.
6 (8) (7) A holder for wine described in IC 7.1-1-2-3(a)(4):
7 (A) may allow transportation to and consumption of the wine
8 on the licensed premises; and
9 (B) may not sell, offer to sell, or allow the sale of the wine on
10 the licensed premises.
11 (9) (8) A holder is entitled to purchase and sell bulk wine as set
12 forth in this chapter.
13 (10) (9) A holder is entitled to sell wine as authorized by this
14 section for carryout on Sunday.
15 (11) (10) A holder is entitled to sell and ship the farm winery's
16 wine to a person located in another state in accordance with the
17 laws of the other state.
18 (12) (11) A holder is entitled to sell the farm winery's wine to the
19 holder of a supplemental caterer's permit issued under
20 IC 7.1-3-9.5 for on-premises consumption only at an event that is
21 held outdoors on property that is contiguous to the farm winery as
22 approved by the commission.
23 (13) (12) A holder is entitled to be the proprietor of a restaurant
24 that is not subject to the minimum gross food sales or the
25 minimum projected food sales set forth in 905 IAC 1-41-2 and the
26 gross retail income requirements to sell carryout under
27 IC 7.1-3-20-9.5. A holder is entitled to conduct the following
28 activities:
29 (A) Hold a beer retailer's permit, a wine retailer's permit, or a
30 liquor retailer's permit for a restaurant.
31 (B) Transfer wine directly from the farm winery to a restaurant
32 that the farm winery has an interest in by means of:
33 (i) bottles or cans;
34 (ii) bulk containers; or
35 (iii) a continuous flow system.
36 (C) Install a window between the farm winery and an adjacent
37 restaurant that allows the public and the holder of the permit
38 to view both premises.
39 (D) Install a doorway or other opening between the farm
40 winery and an adjacent restaurant that provides the public and
41 the holder of the permit with access to both the farm winery
42 and restaurant.
EH 1276—LS 7030/DI 87 11
1 (14) (13) A holder that does not distribute through an Indiana
2 wine wholesaler is entitled under the farm winery permit to sell
3 and deliver to a person holding a wine retailer or wine dealer
4 permit under this title a total of not more than three thousand
5 (3,000) gallons of the farm winery's wine in a calendar year, if the
6 farm winery has not sold in Indiana more than fifteen thousand
7 (15,000) gallons the previous calendar year. A holder that sells
8 and delivers under this subdivision shall comply with all
9 provisions applicable to a wholesaler in 905 IAC 1-5.1, 905
10 IAC 1-5.2, 905 IAC 1-21, 905 IAC 1-31, and 905 IAC 1-32.1.
11 (15) (14) A holder must annually submit to the commission
12 copies of its Indiana and federal excise tax returns.
13 (b) With the approval of the commission, a holder of a permit under
14 this chapter may conduct business at not more than three (3) additional
15 locations that are separate from the winery. At the additional locations,
16 the holder of a permit may conduct any business that is authorized at
17 the first location, except for manufacturing wine or placing wine in
18 bottles or containers.
19 (c) A farm winery may transfer wine from a storage facility or an
20 additional location described in subsection (b). A farm winery may sell
21 or transfer wine directly to a wine wholesaler from a storage facility
22 separate from the farm winery or an additional location described in
23 subsection (b). A farm winery may not sell or transfer wine from a
24 storage facility to any other permittee or a consumer. The farm winery
25 shall maintain an adequate written record of wine transferred:
26 (1) between the farm winery and the storage facility; and
27 (2) from the storage facility to the wholesaler.
28 (d) With the approval of the commission, a holder of a permit under
29 this chapter may:
30 (1) individually; or
31 (2) with other permit holders under this chapter, holders of artisan
32 distiller's permits, holders of brewer's permits issued under
33 IC 7.1-3-2-2(b), or any combination of holders described in this
34 subdivision;
35 participate in a trade show or an exposition at which products of each
36 permit holder participant are displayed, promoted, and sold. All of the
37 permit holders may occupy the same tent, structure, or building. The
38 commission may not grant approval under this subsection to a holder
39 of a permit under this chapter for more than forty-five (45)
40 seventy-five (75) days in a calendar year.
41 (e) With the approval of the commission under subsection (d),
42 a holder of a permit may participate in a farmers' market at which
EH 1276—LS 7030/DI 87 12
1 products of the permit holder are displayed, promoted, and sold.
2 The permit holder may:
3 (1) provide samples of the permit holder's wine for
4 consumption on the premises, subject to a limit of three (3)
5 samples of not more than one (1) ounce per person; and
6 (2) sell the permit holder's wine in a qualified container for
7 consumption off the premises.
8 SECTION 8. IC 7.1-3-15-3 IS AMENDED TO READ AS
9 FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 3. (a) The holder of a
10 wine dealer's permit shall be entitled to purchase wine only from a
11 permittee who is authorized to sell to a wine dealer under this title. A
12 wine dealer shall be entitled to sell wine for consumption off the
13 licensed premises only and not by the drink.
14 (b) A wine dealer shall be entitled to sell wine in permissible
15 containers. in a quantity of not more than three (3) standard cases, as
16 determined under the rules of the commission, in a single transaction.
17 However, a wine dealer who is licensed under IC 7.1-3-10-4 may
18 possess wine and sell it at retail in its original package to a customer
19 only for consumption off the licensed premises.
20 (c) Unless a wine dealer is a grocery store or drug store, a wine
21 dealer may not sell or deliver alcoholic beverages or any other item
22 through a window in the licensed premises to a patron who is outside
23 the licensed premises. A wine dealer that is a grocery store or drug
24 store may sell any item except alcoholic beverages through a window
25 in the licensed premises to a person who is outside the licensed
26 premises.
27 (d) However, a wine dealer who is licensed under IC 7.1-3-10-4 may
28 deliver wine only in permissible containers to a customer's residence,
29 office, or designated location. This delivery may only be performed by
30 the permit holder or an employee who holds an employee permit. The
31 permit holder shall maintain a written record of each delivery for at
32 least one (1) year that shows the customer's name, location of delivery,
33 and quantity sold.
34 SECTION 9. IC 7.1-3-20-26, AS AMENDED BY P.L.11-2023,
35 SECTION 31, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
36 JULY 1, 2025]: Sec. 26. (a) The commission may issue a one-way,
37 two-way, or three-way permit to sell alcoholic beverages for
38 on-premises consumption only to an applicant who is the owner of an
39 indoor theater that:
40 (1) is located in a city having a population of more than one
41 hundred fifty thousand (150,000) and less than five hundred
42 thousand (500,000); and
EH 1276—LS 7030/DI 87 13
1 (2) has been listed in the National Register of Historic Places
2 maintained under the National Historic Preservation Act of 1966,
3 as amended.
4 A permit issued under this subsection may not be transferred (b) A
5 permit issued under this section and is subject to the quota
6 requirements of IC 7.1-3-22-3.
7 (b) The commission may issue a three-way permit to sell
8 alcoholic beverages for on-premises consumption only to an
9 applicant who is the owner of an indoor theater that is:
10 (1) located in a city having a population of more than eighteen
11 thousand (18,000) and less than twenty thousand (20,000); and
12 (2) listed in the National Register of Historic Places
13 maintained under the National Historic Preservation Act of
14 1966, as amended, as part of a national historic district.
15 A permit issued under this subsection may not be transferred and
16 is not subject to the quota requirements of IC 7.1-3-22-3.
17 SECTION 10. IC 7.1-3-20-27, AS AMENDED BY P.L.145-2024,
18 SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
19 JULY 1, 2025]: Sec. 27. (a) This section applies to the premises of a
20 restaurant or hotel.
21 (b) Subject to subsection (c), the holder of a retailer's permit that is
22 issued for the premises of a restaurant or hotel may sell or dispense, for
23 on-premises consumption only, alcoholic beverages, for which the
24 permittee holds the appropriate permit, from a bar located on the
25 licensed premises that opens to an outside patio or terrace that is
26 contiguous adjacent to the main building of the licensed premises of
27 the restaurant or hotel.
28 (c) The holder of a retailer's permit that is issued for the premises of
29 a restaurant or hotel may sell or dispense alcoholic beverages as
30 provided under subsection (b) only if all the following conditions are
31 met:
32 (1) The patio or terrace area described in subsection (b) is:
33 (A) part of the licensed premises; located:
34 (i) within one hundred (100) feet of; and
35 (ii) adjacent to;
36 the main building of the licensed premises; and
37 (B) clearly delineated and completely enclosed on all sides by
38 a barrier that is at least eighteen (18) inches in height.
39 (2) Minors are allowed on the licensed premises at an outside
40 patio or terrace that contains a bar under subsection (b) only in
41 accordance with IC 7.1-5-7-11.
42 (d) A holder of a retailer's permit that is issued for the premises
EH 1276—LS 7030/DI 87 14
1 of a restaurant or hotel may not locate a patio or terrace area
2 described in subsection (b) within any part of a public
3 right-of-way, unless the permit holder does the following:
4 (1) If the public right-of-way is owned or controlled by a local
5 government, the permit holder must:
6 (A) obtain written permission from the local government
7 agency or department that manages the public
8 right-of-way; and
9 (B) provide a copy of the written permission upon the
10 request of a commission employee or a law enforcement
11 officer or agency.
12 (2) If the public right-of-way is owned or controlled by the
13 state, the permit holder must obtain written permission from
14 the Indiana department of transportation.
15 SECTION 11. IC 7.1-3-20-29, AS AMENDED BY P.L.145-2024,
16 SECTION 13, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
17 JULY 1, 2025]: Sec. 29. (a) As used in this section, "food hall" means:
18 (1) for a food hall described in subsection (c) or (d), the
19 premises:
20 (1) (A) located within a retail shopping and food service
21 district; and
22 (2) (B) to which a master permit is issued under this section;
23 or
24 (2) for a food hall described in subsection (e), the premises to
25 which a master permit is issued under this section.
26 (b) As used in this section, "master permit" means a food hall master
27 permit issued under this section.
28 (c) Except as provided in subsection (d), the commission may issue
29 a master permit, which is a three-way retailer's permit for on premises
30 consumption, to a food hall located in a retail shopping and food
31 service district that meets the following requirements:
32 (1) The district consists of an area that:
33 (A) has been redeveloped, renovated, or environmentally
34 remediated in part with grants from the federal, state, or local
35 government under IC 36-7-11; and
36 (B) is entirely located within an incorporated city or town.
37 (2) The district consists of land and a building or group of
38 buildings that are part of a common development.
39 (3) The district is located within a locally designated historic
40 district under IC 36-7-11 established by a city or town ordinance.
41 (4) The district contains at least one (1) building that:
42 (A) is on the list of the National Register for Historic Places or
EH 1276—LS 7030/DI 87 15
1 qualifies as a historic building worthy of preservation under
2 IC 36-7-11; and
3 (B) has been approved for present commercial use by the local
4 historic preservation commission of the city or town.
5 (d) Subsection (c)(3) and (c)(4) does not apply to a food hall that
6 meets one (1) of the following descriptions:
7 (1) The food hall:
8 (A) is located within a certified technology park established
9 under IC 36-7-32; and
10 (B) operates within a previously vacant building that was, or
11 within a complex of buildings that were:
12 (i) placed in service at least twenty-five (25) years prior to
13 the redevelopment of the building or buildings; and
14 (ii) owned by a unit of local government or a public
15 charitable trust prior to redevelopment.
16 (2) The food hall:
17 (A) contains not less than ten (10) distinct nonaffiliated food
18 and beverage vendors; and
19 (B) is located within a mixed use development or
20 redevelopment project with a total investment of at least one
21 hundred million dollars ($100,000,000).
22 (e) The commission may issue a master permit, which is a
23 three-way retailer's permit for on premises consumption, to a food
24 hall that:
25 (1) is located within a consolidated city;
26 (2) is located within five hundred (500) feet of a building that:
27 (A) is on the list of the National Register for Historic
28 Places; or
29 (B) qualifies as a historic building worthy of preservation
30 under IC 36-7-11.1; and
31 (3) contains not less than five (5) distinct nonaffiliated food
32 and beverage vendors.
33 (e) (f) The commission may issue a master permit to the owner or
34 developer of a food hall. The food hall constitutes a single permit
35 premises that:
36 (1) contains not less than:
37 (A) seven (7), distinct, nonaffiliated retail food and beverage
38 vendors, if the food hall is described in subsection (c) or (d);
39 or
40 (B) five (5), distinct, nonaffiliated retail food and beverage
41 vendors, if the food hall is described in subsection (e);
42 each of which may apply for a food hall vendor permit under
EH 1276—LS 7030/DI 87 16
1 section 30 of this chapter; and
2 (2) has a seating capacity of the type traditionally designed for
3 food and drink for at least one hundred (100) people.
4 (f) (g) An applicant for a master permit shall post notice and appear
5 in front of the local board in which the permit premises is situated. The
6 local board shall determine the eligibility of the applicant under this
7 section and hear evidence in support of or against the master permit
8 location. A master permit may not be transferred to a location outside
9 the food hall permit premises. A permit that is inactive for more than
10 six (6) months shall revert back to the commission or may be deposited
11 with the commission under IC 7.1-3-1.1 with the commission's
12 permission.
13 (g) (h) A master permit authorized by this section may be issued
14 without regard to the proximity provisions of IC 7.1-3-21-11 or the
15 quota provisions of IC 7.1-3-22.
16 (h) (i) The commission may not require physical separation between
17 a bar area and a dining area in a food hall.
18 SECTION 12. IC 7.1-3-23-16, AS AMENDED BY P.L.194-2021,
19 SECTION 57, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
20 JULY 1, 2025]: Sec. 16. The commission may revoke:
21 (1) a wholesaler's, retailer's, or dealer's permit of any type;
22 (2) the permit of a farm winery that sells and delivers under
23 IC 7.1-3-12-5(a)(14); IC 7.1-3-12-5(a)(13); or
24 (3) the permit of an artisan distillery that sells and delivers under
25 IC 7.1-3-27-8(a)(11);
26 after final judgment of conviction for an offense defined in this title.
27 The commission may revoke the permit of a holder listed in
28 subdivision (1) through (3) upon a second violation of a provision of
29 this title whether a judgment of conviction ensues or not.
30 SECTION 13. IC 7.1-3-27-8, AS AMENDED BY P.L.194-2021,
31 SECTION 59, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
32 JULY 1, 2025]: Sec. 8. (a) The holder of an artisan distiller's permit
33 may do only the following:
34 (1) Manufacture liquor, including blending liquor purchased from
35 another manufacturer with liquor the artisan distiller
36 manufactures under section 11 of this chapter.
37 (2) Bottle liquor manufactured by the artisan distiller.
38 (3) Insert liquor manufactured by the artisan distiller into a
39 container.
40 (4) Store liquor manufactured by the artisan distiller, including at
41 a facility located within ten (10) miles of the artisan distiller's
42 distillery.
EH 1276—LS 7030/DI 87 17
1 (5) Transport, sell, and deliver liquor manufactured by the artisan
2 distiller to:
3 (A) places outside Indiana; or
4 (B) the holder of a liquor wholesaler's permit under IC 7.1-3-8.
5 (6) Sell liquor manufactured by the artisan distiller to consumers
6 by the drink, bottle, container, or case from the licensed premises
7 of the distillery where the liquor was manufactured.
8 Notwithstanding IC 7.1-1-3-20, the licensed premises may
9 include the distillery parking lot or an area adjacent to the artisan
10 distillery. The parking lot or adjacent area may only be used for
11 the purpose of conveying alcoholic beverages and other
12 nonalcoholic items to a customer subject to section 8.1 of this
13 chapter and may not be used for point of sale purposes or any
14 other purpose.
15 (7) Serve complimentary samples of the liquor manufactured by
16 the artisan distiller to consumers on the premises of the distillery
17 where the liquor was manufactured.
18 (8) Sell liquor as authorized by this section for carryout on
19 Sunday in a quantity at any one (1) time of not more than four and
20 five-tenths (4.5) liters.
21 (9) With the approval of the commission, participate:
22 (A) individually; or
23 (B) with other permit holders under this chapter, holders of
24 farm winery permits, holders of brewer's permits issued under
25 IC 7.1-3-2-2(b), or any combination of holders described in
26 this clause;
27 in a trade show or an exposition at which products of each permit
28 holder participant are displayed, promoted, and sold. All of the
29 permit holders may occupy the same tent, structure, or building.
30 The commission may not grant to a holder of a permit under this
31 chapter approval under this subdivision to participate in a trade
32 show or exposition for more than forty-five (45) seventy-five (75)
33 days in a calendar year.
34 (10) Be the proprietor of a restaurant that is not subject to the
35 minimum gross food sales or the minimum projected food sales
36 set forth in 905 IAC 1-41-2 and the gross retail income
37 requirements to sell carryout under IC 7.1-3-20-9.5. A holder is
38 entitled to conduct the following activities:
39 (A) Hold a beer retailer's permit, a wine retailer's permit, or a
40 liquor retailer's permit for a restaurant.
41 (B) Transfer liquor directly from the artisan distillery to a
42 restaurant that the artisan distiller has an interest in by means
EH 1276—LS 7030/DI 87 18
1 of:
2 (i) bottles;
3 (ii) bulk containers; or
4 (iii) a continuous flow system.
5 (C) Install a window between the artisan distillery and an
6 adjacent restaurant that allows the public and the holder of the
7 permit to view both premises.
8 (D) Install a doorway or other opening between the artisan
9 distillery and an adjacent restaurant that provides the public
10 and the holder of the permit with access to both the artisan
11 distillery and restaurant.
12 (11) A holder that does not distribute through an Indiana liquor
13 wholesaler is entitled under the artisan distiller's permit to sell and
14 deliver to a person holding a liquor retailer or liquor dealer permit
15 under this title a total of not more than one thousand (1,000)
16 gallons of the artisan distillery's liquor in a calendar year, if the
17 artisan distiller has not sold in Indiana more than nine thousand
18 (9,000) gallons the previous calendar year. A holder that sells and
19 delivers under this subdivision shall comply with all provisions
20 applicable to a wholesaler in 905 IAC 1-5.1, 905 IAC 1-5.2, 905
21 IAC 1-21, 905 IAC 1-31, and 905 IAC 1-32.1.
22 (12) A holder must annually submit to the commission copies of
23 its Indiana and federal excise tax returns.
24 (13) With the approval of the commission under subdivision
25 (9), the holder of a permit may participate in a farmers'
26 market at which products of the permit holder are displayed,
27 promoted, and sold. The holder of a permit:
28 (A) may not offer samples of liquor for consumption on the
29 premises; and
30 (B) may sell its liquor in qualified containers for
31 consumption off the premises.
32 (b) The holder of an artisan distiller's permit who provides samples
33 or sells liquor by the glass must furnish the minimum food
34 requirements prescribed by the commission.
35 (c) A storage facility used by an artisan distiller under subsection
36 (a)(4) must conform with federal laws, rules, and regulations. An
37 artisan distiller may transfer liquor from a separate storage facility back
38 to the artisan distillery. An artisan distiller may sell or transfer liquor
39 directly to a liquor wholesaler from a storage facility that is separate
40 from the artisan distillery. An artisan distiller may not sell or transfer
41 liquor from a storage facility to any other permittee or a consumer. The
42 artisan distiller shall maintain an adequate written record of the liquor
EH 1276—LS 7030/DI 87 19
1 transferred:
2 (1) between the artisan distillery and the storage facility; and
3 (2) from the storage facility to the liquor wholesaler.
4 (d) The holder of an artisan distiller's permit may transport liquor to
5 and from a brewery located within the same county for the purposes of
6 carbonating and canning by the brewery. The activity under this
7 subsection is not an interest under IC 7.1-5-9.
8 (e) An artisan distiller who knowingly or intentionally violates this
9 section commits a Class B misdemeanor.
10 SECTION 14. IC 7.1-3-32 IS ADDED TO THE INDIANA CODE
11 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
12 JULY 1, 2025]:
13 Chapter 32. Farmers' Markets
14 Sec. 1. As used in this chapter, "municipality" means a city or
15 town.
16 Sec. 2. A municipality may adopt an ordinance to prohibit the
17 following at a farmers' market located in the municipality:
18 (1) The sale of beer, wine, or liquor products by a person who
19 holds a small brewery permit under IC 7.1-3-2-7(5), a farm
20 winery permit under IC 7.1-3-12, or an artisan distiller's
21 permit under IC 7.1-3-27.
22 (2) The provision of samples of beer and wine by a person who
23 holds a small brewery permit under IC 7.1-3-2-7(5) or a farm
24 winery permit under IC 7.1-3-12.
25 SECTION 15. IC 7.1-5-10-12, AS AMENDED BY P.L.194-2021,
26 SECTION 65, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
27 JULY 1, 2025]: Sec. 12. (a) Except as provided in subsections (b)
28 through (d) and subsection (g), it is unlawful for a permittee to sell,
29 offer to sell, purchase or receive, an alcoholic beverage for anything
30 other than cash. A permittee who extends credit in violation of this
31 section shall have no right of action on the claim.
32 (b) A permittee may credit to a purchaser the actual price charged
33 for a package or an original container returned by the original
34 purchaser as a credit on a sale and refund to a purchaser the amount
35 paid by the purchaser for a container, or as a deposit on a container, if
36 it is returned to the permittee.
37 (c) A manufacturer may extend usual and customary credit for
38 alcoholic beverages sold to a customer who maintains a place of
39 business outside this state when the alcoholic beverages are actually
40 shipped to a point outside this state.
41 (d) An artisan distiller, a distiller, a farm winery, or a liquor or wine
42 wholesaler may extend credit on liquor, flavored malt beverages, and
EH 1276—LS 7030/DI 87 20
1 wine sold to a permittee for a period of fifteen (15) days from the date
2 of invoice, date of invoice included. However, if the fifteen (15) day
3 period passes without payment in full, the:
4 (1) wholesaler;
5 (2) farm winery that sells and delivers under IC 7.1-3-12-5(a)(14);
6 IC 7.1-3-12-5(a)(13); or
7 (3) artisan distillery that sells and delivers under
8 IC 7.1-3-27-8(a)(11);
9 shall sell to that permittee on a cash on delivery basis only.
10 (e) A person who knowingly or intentionally violates this section
11 commits a Class B misdemeanor.
12 (f) Nothing in this section may be construed to prohibit a hotel,
13 restaurant, caterer, or a club that is not open to the general public from
14 extending credit to a consumer purchasing alcohol for personal use at
15 any time.
16 (g) Nothing in this section may be construed to prohibit a retailer or
17 dealer from accepting a:
18 (1) credit card;
19 (2) debit card;
20 (3) charge card; or
21 (4) stored value card;
22 from a consumer purchasing alcohol for personal use.
EH 1276—LS 7030/DI 87 21
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
EH 1276—LS 7030/DI 87 22
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
EH 1276—LS 7030/DI 87 23
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:
EH 1276—LS 7030/DI 87 24
(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
EH 1276—LS 7030/DI 87 25
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
EH 1276—LS 7030/DI 87 26
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
EH 1276—LS 7030/DI 87 27
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
EH 1276—LS 7030/DI 87 28
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.
EH 1276—LS 7030/DI 87 29
(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
EH 1276—LS 7030/DI 87 30
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
EH 1276—LS 7030/DI 87 31
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
EH 1276—LS 7030/DI 87 32
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
EH 1276—LS 7030/DI 87 33
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
EH 1276—LS 7030/DI 87 34
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.
EH 1276—LS 7030/DI 87 35
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.
EH 1276—LS 7030/DI 87 36
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
EH 1276—LS 7030/DI 87 37
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.
EH 1276—LS 7030/DI 87 38
(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
EH 1276—LS 7030/DI 87 39
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:
EH 1276—LS 7030/DI 87 40
(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:
EH 1276—LS 7030/DI 87 41
(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.
EH 1276—LS 7030/DI 87 42
(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.
EH 1276—LS 7030/DI 87 43
COMMITTEE REPORT
Mr. President: The Senate Committee on Public Policy, to which
was referred House Bill No. 1276, has had the same under
consideration and begs leave to report the same back to the Senate with
the recommendation that said bill be AMENDED as follows:
Page 1, delete lines 1 through 17.
Delete pages 2 through 3.
Page 4, delete lines 1 through 38.
Page 6, line 32, delete "sixty (60)" and insert "seventy-five (75)".
Page 8, between lines 6 and 7, begin a new line double block
indented and insert:
"(S) With the approval of the commission under clause (J),
participate in a farmers' market at which products of the
permit holder are displayed, promoted, and sold. The
permit holder may:
(i) provide samples of the brewery's beer for
consumption on the premises, subject to a limit of three
(3) samples of not more than six (6) ounces per person;
and
(ii) sell six (6), twelve (12), and twenty-four (24) packs of
twelve (12) ounce or sixteen (16) ounce cans of the
brewery's beer in qualified containers for consumption
off the premises.".
Page 8, delete lines 31 through 42.
Delete page 9.
Page 10, delete lines 1 through 5.
Page 10, delete lines 41 through 42.
Delete pages 11 through 13.
Page 14, delete lines 1 through 31.
Page 14, between lines 31 and 32, begin a new paragraph and insert:
"SECTION 16. IC 7.1-3-9-11, AS AMENDED BY P.L.94-2008,
SECTION 32, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 11. (a) A liquor retailer may allow customers to
sample the following:
(1) Beer.
(2) Wines.
(3) Liquors.
(4) Liqueurs and cordials (as defined in 27 CFR 5.22(h)).
(5) Flavored malt beverages.
(6) Hard cider.
(7) Mixed beverages.
(b) Sampling is permitted only:
EH 1276—LS 7030/DI 87 44
(1) on the liquor retailer's permit premises; and
(2) during the permittee's regular business hours.
(c) A liquor retailer may not charge for the samples provided to
customers.
(d) Sample size of wines may not exceed one (1) ounce.
(e) In addition to the other provisions of this section, a liquor retailer
who allows customers to sample liquors, liqueurs, or cordials shall
comply with all of the following:
(1) A liquor retailer may allow a customer to sample only a
combined total of two (2) liquor, liqueur, or cordial samples per
day.
(2) Sample size of liqueurs or cordials may not exceed one-half
(1/2) ounce.
(3) Sample size of liquors may not exceed four-tenths (0.4) ounce.
(f) A sample size of beer, flavored malt beverage, mixed beverage,
or hard cider may not exceed six (6) ounces.".
Page 15, delete lines 36 through 42.
Page 16, delete line 1.
Page 16, between lines 1 and 2, begin a new paragraph and insert:
"SECTION 20. IC 7.1-3-10-13, AS AMENDED BY P.L.94-2008,
SECTION 33, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 13. (a) A liquor dealer permittee who is a
proprietor of a package liquor store may allow customers to sample the
following:
(1) Beer.
(2) Wines.
(3) Liquors.
(4) Liqueurs and cordials (as defined in 27 CFR 5.22(h)).
(5) Flavored malt beverages.
(6) Hard cider.
(7) Mixed beverage.
(b) Sampling is permitted:
(1) only on the package liquor store permit premises; and
(2) only during the store's regular business hours.
(c) No charge may be made for the samples provided to the
customers.
(d) Sample size of wines may not exceed one (1) ounce.
(e) In addition to the other provisions of this section, a proprietor
who allows customers to sample liquors, liqueurs, or cordials shall
comply with all of the following:
(1) A proprietor may allow a customer to sample not more than a
combined total of two (2) liquor, liqueur, or cordial samples per
EH 1276—LS 7030/DI 87 45
day.
(2) Sample size of liqueurs or cordials may not exceed one-half
(1/2) ounce.
(3) Sample size of liquors may not exceed four-tenths (0.4) ounce.
(f) A sample size of beer, flavored malt beverage, mixed beverage,
or hard cider may not exceed six (6) ounces.".
Page 18, delete lines 15 through 19.
Page 19, line 4, delete "sixty (60)" and insert "seventy-five (75)".
Page 19, between lines 5 and 6, begin a new paragraph and insert:
"(e) With the approval of the commission under subsection (d),
a holder of a permit may participate in a farmers' market at which
products of the permit holder are displayed, promoted, and sold.
The permit holder may:
(1) provide samples of the permit holder's wine for
consumption on the premises, subject to a limit of three (3)
samples of not more than one (1) ounce per person; and
(2) sell the permit holder's wine in a qualified container for
consumption off the premises.".
Page 19, delete lines 6 through 42.
Page 20, delete lines 1 through 28.
Page 21, delete lines 13 through 42.
Delete page 22.
Page 23, delete lines 1 through 3.
Page 26, delete lines 30 through 42.
Page 27, delete lines 1 through 20.
Page 28, line 35, delete "sixty (60)" and insert "seventy-five (75)".
Page 29, between lines 26 and 27, begin a new line block indented
and insert:
"(13) With the approval of the commission under subdivision
(9), the holder of a permit may participate in a farmers'
market at which products of the permit holder are displayed,
promoted, and sold. The holder of a permit:
(A) may not offer samples of liquor for consumption on the
premises; and
(B) may sell its liquor in qualified containers for
consumption off the premises.".
Page 30, between lines 4 and 5, begin a new paragraph and insert:
"SECTION 32. IC 7.1-3-32 IS ADDED TO THE INDIANA CODE
AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]:
Chapter 32. Farmers' Markets
Sec. 1. As used in this chapter, "municipality" means a city or
EH 1276—LS 7030/DI 87 46
town.
Sec. 2. A municipality may adopt an ordinance to prohibit the
following at a farmers' market located in the municipality:
(1) The sale of beer, wine, or liquor products by a person who
holds a small brewery permit under IC 7.1-3-2-7(5), a farm
winery permit under IC 7.1-3-12, or an artisan distiller's
permit under IC 7.1-3-27.
(2) The provision of samples of beer and wine by a person who
holds a small brewery permit under IC 7.1-3-2-7(5) or a farm
winery permit under IC 7.1-3-12.".
Page 30, delete lines 5 through 42.
Delete pages 31 through 36.
Page 37, delete lines 1 through 3.
Page 38, delete lines 2 through 42.
Delete pages 39 through 42.
Renumber all SECTIONS consecutively.
and when so amended that said bill do pass.
(Reference is to HB 1276 as printed February 4, 2025.)
ALTING, Chairperson
Committee Vote: Yeas 9, Nays 0.
EH 1276—LS 7030/DI 87