First Regular Session of the 124th General Assembly (2025)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
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provision adopted), the text of the new provision will appear in this style type. Also, the
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a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
between statutes enacted by the 2024 Regular Session of the General Assembly.
HOUSE ENROLLED ACT No. 1276
AN ACT to amend the Indiana Code concerning alcohol and
tobacco.
Be it enacted by the General Assembly of the State of Indiana:
SECTION 1. 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
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minimum gross food sales or the minimum projected food
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
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brewer holds a brewer's permit issued under this chapter if the
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) seventy-five (75) 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.
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Upon completion of bottling and packaging the beer, the
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.
(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
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off the premises.
(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
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.
SECTION 2. 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
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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.
(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.
SECTION 3. 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:
(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
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(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.
SECTION 4. IC 7.1-3-9.5-3, AS AMENDED BY P.L.105-2022,
SECTION 13, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 3. (a) The holder of a supplemental caterer's
permit is entitled to purchase alcoholic beverages only from:
(1) a brewery as described in IC 7.1-3-2-7(5)(N);
(2) a farm winery as described in IC 7.1-3-12-5(a)(12);
IC 7.1-3-12-5(a)(11); and
(3) any other permittee entitled to sell to the holder under this
title.
Except as provided in IC 7.1-3-6.1 and IC 7.1-3-6.2, the holder of a
supplemental caterer's permit is entitled to sell alcoholic beverages
only for on-premises consumption at those locations approved by the
commission and at times lawful under the holder's retailers' permits.
Except as provided in IC 7.1-3-6.1 and IC 7.1-3-6.2, the holder of a
supplemental caterer's permit is not entitled to sell alcoholic beverages
at wholesale, nor for carry-out or at-home delivery.
(b) If permitted by the state fair commission under IC 7.1-3-21-14,
a brewery under IC 7.1-3-2-7(5), a farm winery under IC 7.1-3-12, or
an artisan distillery under IC 7.1-3-27 may sell their own products to
consumers for consumption off the state fair grounds under
IC 7.1-3-21-14(b)(3), including at a location on the property of the state
fair grounds for which a supplemental caterer's permit has been
approved.
SECTION 5. 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
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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
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.
SECTION 6. 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
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.
SECTION 7. IC 7.1-3-12-5, AS AMENDED BY P.L.194-2021,
SECTION 42, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 5. (a) The following apply to the holder of a farm
winery permit:
(1) A holder is entitled to manufacture wine and to place wine
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produced by the permit holder's farm winery in bottles or other
permissible containers.
(2) A holder is entitled to serve complimentary samples of the
winery's wine on the licensed premises or an outside area that is
contiguous to the licensed premises, as approved by the
commission if each employee who serves wine on the licensed
premises:
(A) holds an employee's permit under IC 7.1-3-18-9; and
(B) completes a server training program approved by the
commission.
(3) A holder is entitled to sell the winery's wine on the licensed
premises to consumers either by:
(A) the glass;
(B) the bottle;
(C) a box that contains a bag designed for storing and
dispensing wine;
(D) any combination of receptacles listed in clauses (A)
through (C); or
(E) any other container permissible under federal law.
Notwithstanding IC 7.1-1-3-20, the licensed premises may
include the farm winery parking lot or an area adjacent to the farm
winery. The parking lot or an adjacent area may only be used for
the purpose of conveying alcoholic beverages and other
nonalcoholic items to a customer subject to section 5.5 of this
chapter, and may not be used for point of sale purposes or any
other purpose.
(4) A holder is entitled to sell the winery's wine to consumers by
the bottle at a farmers' market that is operated on a nonprofit
basis.
(5) (4) A holder is entitled to sell wine by:
(A) the bottle;
(B) the can;
(C) a box that contains a bag designed for storing and
dispensing wine;
(D) bulk container;
(E) the case; or
(F) any combination of receptacles listed in clauses (A)
through (E);
to a person who is the holder of a permit to sell wine at wholesale.
(6) (5) A holder is exempt from the provisions of IC 7.1-3-14.
(7) (6) A holder is entitled to advertise the name and address of
any retailer or dealer who sells wine produced by the permit
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holder's winery.
(8) (7) A holder for wine described in IC 7.1-1-2-3(a)(4):
(A) may allow transportation to and consumption of the wine
on the licensed premises; and
(B) may not sell, offer to sell, or allow the sale of the wine on
the licensed premises.
(9) (8) A holder is entitled to purchase and sell bulk wine as set
forth in this chapter.
(10) (9) A holder is entitled to sell wine as authorized by this
section for carryout on Sunday.
(11) (10) A holder is entitled to sell and ship the farm winery's
wine to a person located in another state in accordance with the
laws of the other state.
(12) (11) A holder is entitled to sell the farm winery's wine 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 farm winery as
approved by the commission.
(13) (12) A holder is entitled to 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 wine directly from the farm winery to a restaurant
that the farm winery has an interest in by means of:
(i) bottles or cans;
(ii) bulk containers; or
(iii) a continuous flow system.
(C) Install a window between the farm winery 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 farm
winery and an adjacent restaurant that provides the public and
the holder of the permit with access to both the farm winery
and restaurant.
(14) (13) A holder that does not distribute through an Indiana
wine wholesaler is entitled under the farm winery permit to sell
and deliver to a person holding a wine retailer or wine dealer
permit under this title a total of not more than three thousand
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(3,000) gallons of the farm winery's wine in a calendar year, if the
farm winery has not sold in Indiana more than fifteen thousand
(15,000) 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.
(15) (14) A holder must annually submit to the commission
copies of its Indiana and federal excise tax returns.
(b) With the approval of the commission, a holder of a permit under
this chapter may conduct business at not more than three (3) additional
locations that are separate from the winery. At the additional locations,
the holder of a permit may conduct any business that is authorized at
the first location, except for manufacturing wine or placing wine in
bottles or containers.
(c) A farm winery may transfer wine from a storage facility or an
additional location described in subsection (b). A farm winery may sell
or transfer wine directly to a wine wholesaler from a storage facility
separate from the farm winery or an additional location described in
subsection (b). A farm winery may not sell or transfer wine from a
storage facility to any other permittee or a consumer. The farm winery
shall maintain an adequate written record of wine transferred:
(1) between the farm winery and the storage facility; and
(2) from the storage facility to the wholesaler.
(d) With the approval of the commission, a holder of a permit under
this chapter may:
(1) individually; or
(2) with other permit holders under this chapter, holders of artisan
distiller's permits, holders of brewer's permits issued under
IC 7.1-3-2-2(b), or any combination of holders described in this
subdivision;
participate 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 approval under this subsection to a holder
of a permit under this chapter for more than forty-five (45)
seventy-five (75) days in a calendar year.
(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)
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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.
SECTION 8. 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
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.
SECTION 9. IC 7.1-3-20-26, AS AMENDED BY P.L.11-2023,
SECTION 31, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 26. (a) The commission may issue a one-way,
two-way, or three-way permit to sell alcoholic beverages for
on-premises consumption only to an applicant who is the owner of an
indoor theater that:
(1) is located in a city having a population of more than one
hundred fifty thousand (150,000) and less than five hundred
thousand (500,000); and
(2) has been listed in the National Register of Historic Places
maintained under the National Historic Preservation Act of 1966,
as amended.
A permit issued under this subsection may not be transferred (b) A
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permit issued under this section and is subject to the quota
requirements of IC 7.1-3-22-3.
(b) The commission may issue a three-way permit to sell
alcoholic beverages for on-premises consumption only to an
applicant who is the owner of an indoor theater that is:
(1) located in a city having a population of more than eighteen
thousand (18,000) and less than twenty thousand (20,000); and
(2) listed in the National Register of Historic Places
maintained under the National Historic Preservation Act of
1966, as amended, as part of a national historic district.
A permit issued under this subsection may not be transferred and
is not subject to the quota requirements of IC 7.1-3-22-3.
SECTION 10. IC 7.1-3-20-27, AS AMENDED BY P.L.145-2024,
SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 27. (a) This section applies to the premises of a
restaurant or hotel.
(b) Subject to subsection (c), the holder of a retailer's permit that is
issued for the premises of a restaurant or hotel may sell or dispense, for
on-premises consumption only, alcoholic beverages, for which the
permittee holds the appropriate permit, from a bar located on the
licensed premises that opens to an outside patio or terrace that is
contiguous adjacent to the main building of the licensed premises of
the restaurant or hotel.
(c) The holder of a retailer's permit that is issued for the premises of
a restaurant or hotel may sell or dispense alcoholic beverages as
provided under subsection (b) only if all the following conditions are
met:
(1) The patio or terrace area described in subsection (b) is:
(A) part of the licensed premises; located:
(i) within one hundred (100) feet of; and
(ii) adjacent to;
the main building of the licensed premises; and
(B) clearly delineated and completely enclosed on all sides by
a barrier that is at least eighteen (18) inches in height.
(2) Minors are allowed on the licensed premises at an outside
patio or terrace that contains a bar under subsection (b) only in
accordance with IC 7.1-5-7-11.
(d) A holder of a retailer's permit that is issued for the premises
of a restaurant or hotel may not locate a patio or terrace area
described in subsection (b) within any part of a public
right-of-way, unless the permit holder does the following:
(1) If the public right-of-way is owned or controlled by a local
HEA 1276 — Concur 14
government, the permit holder must:
(A) obtain written permission from the local government
agency or department that manages the public
right-of-way; and
(B) provide a copy of the written permission upon the
request of a commission employee or a law enforcement
officer or agency.
(2) If the public right-of-way is owned or controlled by the
state, the permit holder must obtain written permission from
the Indiana department of transportation.
SECTION 11. 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
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.
HEA 1276 — Concur 15
(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
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
HEA 1276 — Concur 16
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 12. 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.
SECTION 13. 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.
HEA 1276 — Concur 17
(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.
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) seventy-five (75)
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.
HEA 1276 — Concur 18
(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.
(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.
(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
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
HEA 1276 — Concur 19
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.
SECTION 14. 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
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.
SECTION 15. 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.
(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;
HEA 1276 — Concur 20
(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.
HEA 1276 — Concur Speaker of the House of Representatives
President of the Senate
President Pro Tempore
Governor of the State of Indiana
Date: Time:
HEA 1276 — Concur