LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
FISCAL IMPACT STATEMENT
LS 7648 NOTE PREPARED: Feb 10, 2025
BILL NUMBER: HB 1663 BILL AMENDED: Feb 4, 2025
SUBJECT: Collaborative Distilling.
FIRST AUTHOR: Rep. Mayfield BILL STATUS: As Passed House
FIRST SPONSOR: Sen. Busch
FUNDS AFFECTED:XGENERAL IMPACT: State & Local
XDEDICATED
FEDERAL
Summary of Legislation: This bill allows the holder of an artisan distiller's permit to: (1) manufacture
liquor, including blending liquor sourced from another licensed manufacturer with liquor the artisan distiller
manufactures; and (2) redistill, age, or bottle liquor, including liquor sourced from another licensed
manufacturer; in accordance with certain provisions.
The bill allows an artisan distiller to manufacture liquor for another artisan distiller if certain conditions are
met. It allows an artisan distiller to blend or sell liquor 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.
The bill also specifies that brandy or liquor transferred in bond counts, for the calendar year in which the
transfer occurs, toward the gallonage limit for the permit holder that receives the liquor or brandy transferred
in bond. It provides that a transfer in bond of liquor or brandy that occurred before July 1, 2025, between the
holder of an artisan distiller's permit, a farm winery brandy distiller's permit, or a distiller's permit: (1) is not
subject to a provision that restricts the amount of sourced liquor that an artisan distiller may sell; and (2) does
not, for purposes of that provision, count toward the amount of sourced liquor that an artisan distiller may
sell.
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: The bill affects the following provisions which are
Class B misdemeanors:
HB 1663 1 (1) The bill changes the penalty of intentionally selling liquor that contains less than 60% of liquor
that was fermented and distilled from raw materials by the artisan distiller 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.
(2) It allows for the scope of an artisan distiller’s permit to manufacture for another holder of an
artisan distiller’s permit and redistill, age, or bottle liquor including liquor sourced from another
licensed manufacturer.
(3) Brandy or liquor transferred in bond counts towards the gallonage limit for an artisan distiller’s
permit or farm winery brandy distiller’s permit.
The bill’s provisions 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.
ATC Penalty: The bill would have an indeterminable effect on civil penalties imposed by the ATC for the
bill’s provisions. Any changes are likely to be small. The ATC can collect a maximum penalty of $4,000,
which is deposited in the Enforcement and Administration Fund.
Explanation of Local Expenditures: Penalty Provision: A Class B misdemeanor is punishable by up to 180
days in jail.
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