*HB1663.1*
February 4, 2025
HOUSE BILL No. 1663
_____
DIGEST OF HB 1663 (Updated February 4, 2025 10:22 am - DI 144)
Citations Affected: IC 7.1-3.
Synopsis: Collaborative distilling. Allows the holder of an artisan
distiller's permit (artisan distiller) 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. Allows an artisan distiller to
manufacture liquor for another artisan distiller if certain conditions are
met. 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. 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. 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: July 1, 2025.
Mayfield, Clere
January 21, 2025, read first time and referred to Committee on Public Policy.
February 4, 2025, amended, reported — Do Pass.
HB 1663—LS 7648/DI 137 February 4, 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.
HOUSE BILL No. 1663
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 7.1-3-7.5-5 IS AMENDED TO READ AS
2 FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 5. (a) Brandy produced
3 by the holder of a farm winery brandy distiller's permit that is sold
4 through a wholesaler licensed under IC 7.1-3-8 is not counted toward
5 the gallonage limit established in section 4 of this chapter.
6 (b) Brandy or liquor transferred in bond counts, for the
7 calendar year in which the transfer occurs, toward the gallonage
8 limit established in section 4 of this chapter for the permit holder
9 that receives the liquor or brandy transferred in bond.
10 SECTION 2. IC 7.1-3-27-8, AS AMENDED BY P.L.194-2021,
11 SECTION 59, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
12 JULY 1, 2025]: Sec. 8. (a) The holder of an artisan distiller's permit
13 may do only the following:
14 (1) Manufacture liquor, including blending liquor purchased
15 sourced from another licensed manufacturer with liquor the
16 artisan distiller manufactures under in accordance with section
17 11 of this chapter.
HB 1663—LS 7648/DI 137 2
1 (2) Bottle liquor manufactured by the artisan distiller.
2 (3) Insert liquor manufactured by the artisan distiller into a
3 container.
4 (4) Store liquor manufactured by the artisan distiller, including at
5 a facility located within ten (10) miles of the artisan distiller's
6 distillery.
7 (5) Transport, sell, and deliver liquor manufactured by the artisan
8 distiller to:
9 (A) places outside Indiana; or
10 (B) the holder of a liquor wholesaler's permit under IC 7.1-3-8.
11 (6) Sell liquor manufactured by the artisan distiller to consumers
12 by the drink, bottle, container, or case from the licensed premises
13 of the distillery where the liquor was manufactured.
14 Notwithstanding IC 7.1-1-3-20, the licensed premises may
15 include the distillery parking lot or an area adjacent to the artisan
16 distillery. The parking lot or adjacent area may only be used for
17 the purpose of conveying alcoholic beverages and other
18 nonalcoholic items to a customer subject to section 8.1 of this
19 chapter and may not be used for point of sale purposes or any
20 other purpose.
21 (7) Serve complimentary samples of the liquor manufactured by
22 the artisan distiller to consumers on the premises of the distillery
23 where the liquor was manufactured.
24 (8) Sell liquor as authorized by this section for carryout on
25 Sunday in a quantity at any one (1) time of not more than four and
26 five-tenths (4.5) liters.
27 (9) With the approval of the commission, participate:
28 (A) individually; or
29 (B) with other permit holders under this chapter, holders of
30 farm winery permits, holders of brewer's permits issued under
31 IC 7.1-3-2-2(b), or any combination of holders described in
32 this clause;
33 in a trade show or an exposition at which products of each permit
34 holder participant are displayed, promoted, and sold. All of the
35 permit holders may occupy the same tent, structure, or building.
36 The commission may not grant to a holder of a permit under this
37 chapter approval under this subdivision to participate in a trade
38 show or exposition for more than forty-five (45) days in a
39 calendar year.
40 (10) Be the proprietor of a restaurant that is not subject to the
41 minimum gross food sales or the minimum projected food sales
42 set forth in 905 IAC 1-41-2 and the gross retail income
HB 1663—LS 7648/DI 137 3
1 requirements to sell carryout under IC 7.1-3-20-9.5. A holder is
2 entitled to conduct the following activities:
3 (A) Hold a beer retailer's permit, a wine retailer's permit, or a
4 liquor retailer's permit for a restaurant.
5 (B) Transfer liquor directly from the artisan distillery to a
6 restaurant that the artisan distiller has an interest in by means
7 of:
8 (i) bottles;
9 (ii) bulk containers; or
10 (iii) a continuous flow system.
11 (C) Install a window between the artisan distillery and an
12 adjacent restaurant that allows the public and the holder of the
13 permit to view both premises.
14 (D) Install a doorway or other opening between the artisan
15 distillery and an adjacent restaurant that provides the public
16 and the holder of the permit with access to both the artisan
17 distillery and restaurant.
18 (11) A holder that does not distribute through an Indiana liquor
19 wholesaler is entitled under the artisan distiller's permit to sell and
20 deliver to a person holding a liquor retailer or liquor dealer permit
21 under this title a total of not more than one thousand (1,000)
22 gallons of the artisan distillery's liquor in a calendar year, if the
23 artisan distiller has not sold in Indiana more than nine thousand
24 (9,000) gallons the previous calendar year. A holder that sells and
25 delivers under this subdivision shall comply with all provisions
26 applicable to a wholesaler in 905 IAC 1-5.1, 905 IAC 1-5.2, 905
27 IAC 1-21, 905 IAC 1-31, and 905 IAC 1-32.1.
28 (12) A holder must annually submit to the commission copies of
29 its Indiana and federal excise tax returns.
30 (13) Manufacture liquor at the licensed premises for another
31 holder of an artisan distiller's permit. Upon completion of the
32 manufacturing of the liquor for another permit holder under
33 this subdivision, the product must be transported to the
34 permit holder for which the liquor was manufactured. To
35 qualify under this subdivision:
36 (A) the permit holder for which the liquor is manufactured
37 must have manufactured not less than forty (40) gallons of
38 liquor produced from raw materials at the permit holder's
39 licensed premises in the previous calendar year; and
40 (B) the total number of gallons of liquor that a permit
41 holder manufactures under this subdivision may not
42 exceed the number of gallons of liquor the permit holder
HB 1663—LS 7648/DI 137 4
1 produced from raw materials at the permit holder's
2 licensed premises in the same calendar year.
3 All records required by the federal Alcohol and Tobacco Tax
4 and Trade Bureau regarding the number of gallons of liquor
5 produced from raw materials at the licensed premises of a
6 permit holder must be available to the commission upon
7 request. The activity under this subdivision is not an interest
8 under IC 7.1-5-9.
9 (14) Redistill, age, or bottle liquor, including liquor sourced
10 from another licensed manufacturer in accordance with
11 section 11 of this chapter.
12 (b) The holder of an artisan distiller's permit who provides samples
13 or sells liquor by the glass must furnish the minimum food
14 requirements prescribed by the commission.
15 (c) A storage facility used by an artisan distiller under subsection
16 (a)(4) must conform with federal laws, rules, and regulations. An
17 artisan distiller may transfer liquor from a separate storage facility back
18 to the artisan distillery. An artisan distiller may sell or transfer liquor
19 directly to a liquor wholesaler from a storage facility that is separate
20 from the artisan distillery. An artisan distiller may not sell or transfer
21 liquor from a storage facility to any other permittee or a consumer. The
22 artisan distiller shall maintain an adequate written record of the liquor
23 transferred:
24 (1) between the artisan distillery and the storage facility; and
25 (2) from the storage facility to the liquor wholesaler.
26 (d) The holder of an artisan distiller's permit may transport liquor to
27 and from a brewery located within the same county for the purposes of
28 carbonating and canning by the brewery. The activity under this
29 subsection is not an interest under IC 7.1-5-9.
30 (e) An artisan distiller who knowingly or intentionally violates this
31 section commits a Class B misdemeanor.
32 SECTION 3. IC 7.1-3-27-11, AS AMENDED BY P.L.159-2014,
33 SECTION 13, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
34 JULY 1, 2025]: Sec. 11. (a) An artisan distiller may blend or sell liquor
35 that the artisan distiller obtains from another manufacturer with as
36 liquor that the artisan distiller manufactures. The artisan distiller may
37 sell the blended or sourced liquor as liquor that the artisan distiller
38 manufactures only if the final product contains at least sixty percent
39 (60%) of liquor artisan distiller's aggregate annual sales, in gallons
40 of liquor, is made up of not less than seventy percent (70%) of
41 liquor that was fermented and distilled from raw materials by the
42 artisan distiller at the licensed premises of the artisan distiller.
HB 1663—LS 7648/DI 137 5
1 (b) An artisan distiller who knowingly or intentionally sells blended
2 or sourced liquor in an amount that contains less than sixty percent
3 (60%) of liquor exceeds thirty percent (30%) of the artisan
4 distiller's aggregate annual sales, in gallons, that was fermented and
5 distilled from raw materials by the artisan distiller sold at the licensed
6 premises of the artisan distiller commits a Class B misdemeanor.
7 SECTION 4. IC 7.1-3-27-11.5 IS ADDED TO THE INDIANA
8 CODE AS A NEW SECTION TO READ AS FOLLOWS
9 [EFFECTIVE JULY 1, 2025]: Sec. 11.5. (a) A transfer in bond of
10 liquor or brandy that occurred before July 1, 2025, between the
11 holder of an artisan distiller's permit, a farm winery brandy
12 distiller's permit, or a distiller's permit:
13 (1) is not subject to section 11 of this chapter; and
14 (2) does not, for purposes of section 11 of this chapter, count
15 toward the amount of sourced liquor that an artisan distiller
16 may sell.
17 (b) Brandy or liquor transferred in bond counts, for the
18 calendar year in which the transfer occurs, toward the gallonage
19 limit established in section 3 of this chapter for the permit holder
20 that receives the liquor or brandy transferred in bond.
HB 1663—LS 7648/DI 137 6
COMMITTEE REPORT
Mr. Speaker: Your Committee on Public Policy, to which was
referred House Bill 1663, 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, between the enacting clause and line 1, begin a new
paragraph and insert:
"SECTION 1. IC 7.1-3-7.5-5 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 5. (a) Brandy produced
by the holder of a farm winery brandy distiller's permit that is sold
through a wholesaler licensed under IC 7.1-3-8 is not counted toward
the gallonage limit established in section 4 of this chapter.
(b) Brandy or liquor transferred in bond counts, for the
calendar year in which the transfer occurs, toward the gallonage
limit established in section 4 of this chapter for the permit holder
that receives the liquor or brandy transferred in bond.".
Page 1, line 5, after "blending" delete ", redistilling, aging,".
Page 1, line 6, delete "and bottling".
Page 1, line 7, reset in roman "with liquor the artisan distiller
manufactures".
Page 3, between lines 41 and 42, begin a new line block indented
and insert:
"(14) Redistill, age, or bottle liquor, including liquor sourced
from another licensed manufacturer in accordance with
section 11 of this chapter.".
Page 4, line 22, reset in roman "blend".
Page 4, line 22, after "blend" insert "or".
Page 4, line 25, reset in roman "blended".
Page 4, line 25, after "blended" insert "or".
Page 4, line 31, reset in roman "blended".
Page 4, line 31, after "blended" insert "or".
Page 4, after line 36, begin a new paragraph and insert:
"SECTION 4. IC 7.1-3-27-11.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2025]: Sec. 11.5. (a) 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 section 11 of this chapter; and
(2) does not, for purposes of section 11 of this chapter, count
toward the amount of sourced liquor that an artisan distiller
HB 1663—LS 7648/DI 137 7
may sell.
(b) Brandy or liquor transferred in bond counts, for the
calendar year in which the transfer occurs, toward the gallonage
limit established in section 3 of this chapter for the permit holder
that receives the liquor or brandy transferred in bond.".
Renumber all SECTIONS consecutively.
and when so amended that said bill do pass.
(Reference is to HB 1663 as introduced.)
MANNING
Committee Vote: yeas 12, nays 0.
HB 1663—LS 7648/DI 137