LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
FISCAL IMPACT STATEMENT
LS 7648 NOTE PREPARED: Jan 10, 2025
BILL NUMBER: HB 1663 BILL AMENDED:
SUBJECT: Collaborative Distilling.
FIRST AUTHOR: Rep. Mayfield BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED:XGENERAL IMPACT: State & Local
XDEDICATED
FEDERAL
Summary of Legislation: This bill allows the holder of an artisan distiller's permit to redistill, age, and
bottle liquor sourced from another licensed manufacturer. It allows an artisan distiller to manufacture liquor
for another artisan distiller if certain conditions are met. It also allows an artisan distiller to sell liquor
sourced from another licensed manufacturer as liquor that the artisan distiller manufactures if the artisan
distiller's aggregate annual sales, in gallons, is made up of not less than 70% of liquor that was fermented
and distilled from raw materials by the artisan distiller at the licensed premises of the artisan distiller.
Effective Date: July 1, 2025.
Explanation of State Expenditures: Alcohol and Tobacco Commission (ATC): The bill would increase
workload for the ATC to administer and enforce the provisions of the bill. 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 State Revenues: Penalty Provision: Currently, it is a Class B misdemeanor to intentionally
sell liquor that contains less than 60% of liquor that was fermented and distilled from raw materials by the
artisan distiller. The bill changes the penalty to intentionally selling sourced liquor in an amount that exceeds
30% of the artisan distiller’s aggregate annual sales, in gallons, sold at the licensed premises of the artisan
distiller. The bill’s provision would have an indeterminable effect on the penalty amount. Any changes are
likely to be small.
The maximum fine for a Class B misdemeanor is $1,000. The total fee revenue per case would range between
$113 and $138. The amount of court fees deposited will vary depending on whether the case is filed in a
court of record or a municipal court. The following linked document describes the fees and distribution of
the revenue: Court fees imposed in criminal, juvenile, and civil violation cases.
Explanation of Local Expenditures: Penalty Provision: A Class B misdemeanor is punishable by up to 180
days in jail.
HB 1663 1 Explanation of Local Revenues: Penalty Provision: If additional court actions occur and a guilty verdict
is entered, more revenue will be collected by certain local units. If the case is filed in a court of record, the
county general fund will receive $47.40 and qualifying municipalities will receive a share of $3.60. If the
case is filed in a municipal court, the county receives $30, and the municipality will receive $46. The
following linked document describes the fees and distribution of the revenue: Court fees imposed in
criminal, juvenile, and civil violation cases.
State Agencies Affected: Alcohol and Tobacco Commission.
Local Agencies Affected: Trial courts, local law enforcement agencies.
Information Sources: Indiana Supreme Court, Indiana Trial Court Fee Manual
Fiscal Analyst: Nate Bodnar, 317-234-9476.
HB 1663 2