LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
FISCAL IMPACT STATEMENT
LS 6460 NOTE PREPARED: Apr 7, 2025
BILL NUMBER: HB 1468 BILL AMENDED: Apr 7, 2025
SUBJECT: Alcoholic Beverages and Tobacco.
FIRST AUTHOR: Rep. Miller K BILL STATUS: 2
nd
Reading - 2
nd
House
FIRST SPONSOR: Sen. Busch
FUNDS AFFECTED: GENERAL IMPACT: State & Local
XDEDICATED
FEDERAL
Summary of Legislation: (Amended) This bill allows the holder of a tobacco sales certificate (holder) to
obtain a supplemental cigar sales certificate (cigar certificate) that allows the holder to sell cigars on a
temporary basis at a function or event. It provides the fee for a cigar certificate is $1,000 and has a term of
three years. It requires the holder to give written notice to the Alcohol and Tobacco Commission (ATC) of
the date and location of the function or event where the holder proposes to sell cigars. It also provides that
the ATC's approval of the location does not authorize smoking in violation of: (1) state laws prohibiting
smoking in public places; or (2) any county, city, or town smoking ordinance.
The bill also allows a restaurant proprietor who holds an alcoholic beverage retailer's permit to establish a
segregated room where cigar consumption may occur, if the proprietor has the permission of the local
government entity that enforces local smoking ordinances.
Effective Date: (Amended) Upon passage; July 1, 2025.
Explanation of State Expenditures: The bill would increase expenditures and workload for the ATC to
create, administer, and enforce a supplemental cigar sales certificate. Any increase in expenditures would
be offset by the increase in revenue to the Enforcement and Administration Fund from the supplemental cigar
sales certificate fee.
Explanation of State Revenues: (Revised) The bill creates a supplemental cigar sales certificate for a
$1,000 fee, obtainable by holders of a tobacco sales certificate. The bill’s provision would increase revenue
to the Enforcement and Administration Fund. While the increase in revenue is indeterminable, the impact
could be significant and would depend on the number of tobacco sales certificate holders that apply to sell
cigars at another location or temporary functions or events.
Additional Information - Based on the number of existing tobacco sales certificates, the maximum amount
of revenue in FY 2026 the supplemental cigar sales certificate could generate if all tobacco sales certificate
holders applied is $8.3 M. As of November 2024, there are 8,298 active tobacco sales certificates, with 1,399
that have been renewed so far in 2024.
HB 1468 1 The fee for a tobacco sales certificate is $200 and is paid every three years. Revenue is deposited into the
Enforcement and Administration Fund. The last five years of revenue is shown in the table below.
Tobacco Sales Certificate Revenue
FY 2020 $464,355
FY 2021 $816,755
FY 2022 $470,383
FY 2023 $593,740
FY 2024 $730,345
Explanation of Local Expenditures: (Revised) The bill may increase workload for local governments that
enforce local smoking ordinances to respond to requests for written permission for a restaurant permittee to
establish a segregated room where cigar consumption may occur. The bill’s requirements are within the
agency’s routine administrative functions and should be able to be implemented with no additional
appropriations, assuming near customary agency staffing and resource levels.
Explanation of Local Revenues:
State Agencies Affected: Alcohol and Tobacco Commission.
Local Agencies Affected: Local units.
Information Sources: Chris Serak, Alcohol and Tobacco Commission. Peoplesoft Financial Data.
Legislative Services Agency. Indiana Handbook of Taxes, Revenues, and Appropriations, FY 2024.
Fiscal Analyst: Nate Bodnar, 317-234-9476.
HB 1468 2