Bill Text: IN HB1239 | 2011 | Regular Session | Introduced
Bill Title: Alcoholic beverages.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2011-01-12 - First reading: referred to Committee on Public Policy [HB1239 Detail]
Download: Indiana-2011-HB1239-Introduced.html
Citations Affected: IC 7.1-2-3-16.5; IC 7.1-3; IC 7.1-4; IC 7.1-5.
Synopsis: Alcoholic beverages. Creates a supplemental dealer's permit
and a cold beer dealer's permit. Provides that a supplemental dealer's
permit may be issued only to a holder of a beer, wine, or liquor dealer's
permit. Allows the holder of a supplemental dealer's permit to sell
alcoholic beverages for carryout on Sunday. Allows the holder of a cold
beer dealer's permit to sell cold beer. Establishes fees for a
supplemental dealer's permits and a cold beer dealer's permits.
Requires the fees to be deposited in the enforcement and administration
fund of the alcohol and tobacco commission. Allows the: (1) holder of
a package liquor store permit, farm winery permit, or a microbrewery
permit to sell carryout alcoholic beverages on Sunday without a
supplemental dealer's permit; and (2) holder of a package liquor store
permit to sell cold beer without a cold beer dealer's permit. Allows a
minor to be on the licensed premises of a package liquor store if the
minor is accompanied by the minor's parent or guardian who is at least
21 years of age. Eliminates residency requirements for alcoholic
beverage dealers. Repeals a provision that limits the commodities that
a package liquor store may sell.
Effective: July 1, 2011.
January 12, 2011, read first time and referred to Committee on Public Policy.
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
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
A BILL FOR AN ACT to amend the Indiana Code concerning
alcohol and tobacco.
(1) A facility to which IC 7.1-3-1-25(a) applies.
(2) A tract that contains a premises that is described in
(3) A horse track or satellite facility to which IC 7.1-3-17.7 applies.
(4) A tract that contains an entertainment complex.
(b) As used in this section, "tract" has the meaning set forth in IC 6-1.1-1-22.5.
(c) A facility may advertise alcoholic beverages:
(1) in the facility's interior; or
(2) on the facility's exterior.
(d) The commission may not exercise the prohibition power contained in section 16(a) of this chapter on advertising by a brewer, distiller, rectifier, or vintner in or on a facility.
(e) Notwithstanding IC 7.1-5-5-10 and IC 7.1-5-5-11, a facility may provide advertising to a permittee that is a brewer, distiller, rectifier, or vintner in exchange for compensation from that permittee.
(b) It is lawful for the holder of a retailer's permit to sell the appropriate alcoholic beverages only for consumption on the licensed premises
(c) It is lawful for the holder of a:
(1) supplemental dealer's permit;
(2) liquor dealer's permit for a package liquor store;
(3) farm winery permit; or
(4) brewer's permit for a brewery that manufactures not more than twenty thousand (20,000) barrels of beer in a calendar year;
to sell on Sunday, from 7 a.m., prevailing local time, until 3 a.m., prevailing local time, the following day, the appropriate alcoholic beverages for consumption only off the licensed premises.
(1) are described in section 25(a) of this chapter;
(2) are a facility used in connection with the operation of a paved track more than two (2) miles in length that is used primarily in the sport of auto racing; or
(3) are being used for a professional or an amateur tournament;
beginning one (1) hour before the scheduled starting time of the event or, if the scheduled starting time of the event is 1 p.m. or later, beginning at noon.
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's brewery manufactures not more than twenty
thousand (20,000) barrels of beer in a calendar year, do the
following:
(A) Sell and deliver beer to a person holding a retailer or a
dealer permit under this title.
(B) Be the proprietor of a restaurant.
(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 furnish the minimum food requirements
prescribed by the commission.
(H) Sell and deliver beer to a consumer at the permit premises
of the brewer or at the residence of the consumer. 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 and as
provided in IC 7.1-3-1-14 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 only at the address for which the brewer's permit
was issued under this chapter.
(6) If the brewer's brewery manufactures more than twenty
thousand (20,000) barrels of beer in a calendar year, 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 twenty thousand (20,000) 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.
(b) A beer wholesaler permittee may possess, transport, sell, and deliver beer to:
(1) another beer wholesaler authorized by the brewer to sell the brand purchased;
(2) an employee; or
(3) a holder of a beer retailer's permit, beer dealer's permit, temporary beer permit, dining car permit, boat permit, airplane permit,
located within this state. The sale, transportation, and delivery of beer shall be made only from inventory that has been located on the wholesaler's premises before the time of invoicing and delivery.
(c) The beer wholesaler's bona fide regular employees may purchase beer from the wholesaler in:
(1) bottles, cans, or any other type of permissible containers in an amount not to exceed forty-eight (48) pints; or
(2) one (1) keg;
at any one (1) time.
(d) The importation, transportation, possession, sale, and delivery of beer shall be subject to the rules of the commission and subject to the same restrictions provided in this title for a person holding a brewer's permit.
(e) Except as provided in subsection (f), the holder of a beer wholesaler's permit may purchase, import, possess, transport, sell, and deliver any
(1) Beer in permissible containers, if the permittee has the proper permit.
(2) Bar supplies used in the preparation for consumption of alcoholic beverages and in their consumption.
(3) Tobacco products.
(4) Uncooled and uniced charged water, carbonated soda, ginger ale, mineral water, grenadine, and flavoring extracts.
(5) Printed materials.
(6) Lottery tickets as provided in IC 4-30-9.
(7) Cooled or uncooled nonalcoholic malt beverages.
(8) Flavored malt beverage in its original package.
(f) A beer wholesaler may deliver flavored malt beverages only to the holder of one (1) of the following permits:
(1) A beer wholesaler or wine wholesaler permit, if the wholesaler is authorized by the primary source of supply to sell the brand of flavored malt beverage purchased.
(2) A wine retailer's permit, wine dealer's permit, temporary wine permit, dining car wine permit, boat permit, airplane permit,
(1) store beer for an out-of-state brewer described in IC 7.1-3-2-9 and deliver the stored beer to another beer wholesaler that the out-of-state brewer authorizes to sell the beer;
(2) perform all necessary accounting and auditing functions associated with the services described in subdivision (1); and
(3) receive a fee from an out-of-state brewer for the services described in subdivisions (1) through (2).
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
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. 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. 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.
(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.
(b) A liquor wholesaler shall be entitled to purchase liquor within this state from a person who holds a distiller's permit, a rectifier's permit, or a liquor wholesaler's permit. A liquor wholesaler also may purchase liquor outside this state from the primary source of supply and, from that source, may transport and import liquor into this state.
(c) A liquor wholesaler may sell, transport, and deliver liquor only to a person who, under this title, holds a:
(1) liquor retailer's permit;
(2) supplemental caterer's permit;
(3) liquor dealer's permit;
(4) liquor wholesaler's permit; or
(5) supplemental dealer's permit.
The sale, transportation, and delivery of liquor shall be made only from inventory that has been located on the wholesaler's premises before the time of invoicing and delivery, and only in permissible containers and is subject to the rules of the commission fixing the quantity which may be sold or delivered at any one (1) time.
(d) A liquor wholesaler's bona fide regular employees may purchase liquor from the wholesaler in an amount not to exceed eighteen (18) liters.
(1) the holder of a three-way permit that is issued to a civic center, a sports arena, a stadium, an exhibition hall, an auditorium, a theater, a tract that contains a premises that is described in
(2) the holder of a catering permit while catering alcoholic beverages at a civic center, a sports arena, a stadium, an exhibition hall, an auditorium, a theater, a tract that contains a premises that is described in
(b) As used in this section, "suite" means an area in a building or facility referred to in subsection (a) that:
(1) is not accessible to the general public;
(2) has accommodations for not more than seventy-five (75) persons per suite; and
(3) is accessible only to persons who possess a ticket:
(A) to an event in a building or facility referred to in subsection (a); and
(B) that entitles the person to occupy the area while viewing the event described in clause (A).
The term does not include a restaurant, lounge, or concession area, even if access to the restaurant, lounge, or concession area is limited to certain ticket holders.
(c) A permittee may allow the self-service of individual servings of
alcoholic beverages in a suite.
(d) A person who:
(1) possesses a ticket described in subsection (b)(3); and
(2) is at least twenty-one (21) years of age;
may obtain an alcoholic beverage in a suite by self-service.
(e) A permittee may do any of the following:
(1) Demand that a person occupying a suite provide:
(A) a written statement under IC 7.1-5-7-4; and
(B) identification indicating that the person is at least
twenty-one (21) years of age.
(2) Supervise the self-service of alcoholic beverages.
(3) Have an employee in the suite who holds an employee permit
under IC 7.1-3-18-9 to serve some or all of the alcoholic
beverages.
(1) is entitled to manufacture wine and to bottle wine produced by the permit holder's farm winery;
(2) 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 permit under IC 7.1-3-18-9; and
(B) completes a server training program approved by the commission;
(3) is entitled to sell the winery's wine on the licensed premises to consumers either by the glass, or by the bottle, or both;
(4) 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) is entitled to sell wine by the bottle or by the case to a person who is the holder of a permit to sell wine at wholesale;
(6) is exempt from the provisions of IC 7.1-3-14;
(7) is entitled to advertise the name and address of any retailer or dealer who sells wine produced by the permit holder's winery;
(8) 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) is entitled to purchase and sell bulk wine as set forth in this chapter;
(10) is entitled to sell wine as authorized by this section and as provided in IC 7.1-3-1-14 for carryout on Sunday; and
(11) 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.
(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 the manufacturing or bottling of wine.
(c) With the approval of the commission, a holder of a permit under this chapter may, individually or with other permit holders under this chapter, participate in a trade show or an exposition at which products of each permit holder participant are displayed, promoted, and sold. The commission may not grant approval under this subsection to a holder of a permit under this chapter for more than thirty (30) days in a calendar year.
fide regular employees.
(b) As used in this section, "brandy" means:
(1) any alcoholic distillate described in 27 CFR 5.22(d) as in
effect on January 1, 1983; or
(2) a beverage product that:
(A) is prepared from a liquid described in subdivision (1);
(B) is classified as a cordial or liqueur as defined in 27 CFR
5.22(h) as in effect on January 1, 1997; and
(C) meets the following requirements:
(i) At least sixty-six and two-thirds percent (66 2/3%) of the
product's alcohol content is composed of a substance
described in subdivision (1).
(ii) The product's label makes no reference to any distilled
spirit other than brandy.
(iii) The product's alcohol content is not less than sixteen
percent (16%) by volume or thirty-two (32) degrees proof.
(iv) The product contains dairy cream.
(v) The product's sugar, dextrose, or levulose content is at
least twenty percent (20%) of the product's weight.
(vi) The product contains caramel coloring.
(c) Nothing in this section allows a wine wholesaler to sell, give,
purchase, transport, or export beer (as defined in IC 7.1-1-3-6) unless
the wine wholesaler also holds a beer wholesaler's permit under
IC 7.1-3-3-1.
(d) A wine wholesaler that also holds a liquor wholesaler's permit
under IC 7.1-3-8 may not:
(1) hold a beer wholesaler's permit under IC 7.1-3-3;
(2) possess, sell, or transport beer; or
(3) sell more than one million (1,000,000) gallons of flavored
malt beverage during a calendar year.
(1) an alcoholic beverage retailer's
(2) a liquor wholesaler's permit;
to a person who has not been a continuous and bona fide resident of Indiana for five (5) years immediately preceding the date of the application for a permit.
(1) a liquor wholesaler's permit; or
(2) an alcoholic beverage retailer's
of any type to a partnership unless each member of the partnership possesses the same qualifications as those required of an individual applicant for that particular type of permit.
(1) an alcoholic beverage retailer's
(2) a liquor wholesaler's permit;
to a corporation unless sixty percent (60%) of the outstanding common stock is owned by persons who have been continuous and bona fide residents of Indiana for five (5) years.
(b) The commission shall not issue a liquor wholesaler's permit to a corporation unless at least one (1) of the stockholders shall have been a resident, for at least one (1) year immediately prior to making application for the permit, of the county in which the licensed premises are to be situated.
(c) Each officer and stockholder of a corporation shall possess all other qualifications required of an individual applicant for that particular type of permit.
(1) an alcoholic beverage retailer's
(2) a liquor wholesaler's permit;
to a limited partnership unless at least sixty percent (60%) of the partnership interest is owned by persons who have been continuous and bona fide residents of Indiana for five (5) years.
(b) The commission shall not issue a liquor wholesaler's permit to a limited partnership unless for at least one (1) year immediately before making application for the permit, at least one (1) of the persons having a partnership interest has been a resident of the county in which the licensed premises are to be situated.
(c) Each general partner and limited partner of a limited partnership must possess all other qualifications required of an individual applicant for that particular type of permit.
(1) an alcoholic beverage retailer's
(2) a liquor wholesaler's permit;
to a limited liability company unless at least sixty percent (60%) of the membership interest is owned by persons who have been continuous and bona fide residents of Indiana for five (5) years.
(b) The commission shall not issue a liquor wholesaler's permit to a limited liability company unless for at least one (1) year immediately before making application for the permit, at least one (1) of the persons having a membership interest has been a resident of the county in which the licensed premises are to be situated.
(c) Each manager and member of a limited liability company must possess all other qualifications required of an individual applicant for that particular type of permit.
(1) a dining car permit;
(2) a boat permit;
(A) that is sufficiently served by adequate law enforcement at its permit location; and
(B) whose annual gross food sales at the permit location:
(i) exceed one hundred thousand dollars ($100,000); or
(ii) in the case of a new application and as proved by the applicant to the local board and the commission, will exceed two hundred thousand dollars ($200,000) by the end of the two (2) year period from the date of the issuance of the permit.
(b) The commission shall not issue a permit listed in subsection (a) to a foreign:
(1) corporation;
(2) limited partnership; or
(3) limited liability company;
that is not duly qualified to do business in Indiana.
Chapter 27. Supplemental Dealer's Permits
Sec. 1. This chapter does not apply to a holder of a liquor dealer's permit for a package liquor store.
Sec. 2. The commission may issue a supplemental dealer's permit only to a holder of a beer, wine, or liquor dealer's permit. The holder of a beer, wine, or liquor dealer's permit may sell alcoholic beverages as follows:
(1) A holder of a beer, wine, or liquor dealer's permit may sell alcoholic beverages Monday through Saturday under IC 7.1-3-1-14.
(2) A holder of a beer, wine, or liquor dealer's permit that also holds a supplemental dealer's permit under this chapter may also sell alcoholic beverages on Sunday to customers for consumption only off the licensed premises under IC 7.1-3-1-14.
Sec. 3. The holder of a supplemental dealer's permit is entitled to:
(1) purchase alcoholic beverages only from a permittee entitled to sell to the holder of the supplemental dealer's permit under this title;
(2) possess and sell only those types of alcoholic beverages that the dealer may lawfully possess and sell under the permit held by the dealer that qualifies the dealer to also hold a supplemental dealer's permit; and
(3) sell the appropriate alcoholic beverages for consumption off the licensed premises on Sunday, as provided in IC 7.1-3-1-14.
Sec. 4. A supplemental dealer's permit, for purposes of this title, is considered a separate and distinct type of dealer's permit. It does not affect the rights, privileges, and restrictions applicable to any other type of dealer's permit. The rights, privileges, and restrictions provided in this title for a supplemental dealer's permit apply only on Sundays.
Chapter 28. Cold Beer Dealer's Permits
Sec. 1. This chapter does not apply to a holder of a liquor dealer's permit for a package liquor store.
Sec. 2. The commission may issue a cold beer dealer's permit only to a holder of a beer dealer's permit. The holder of a beer dealer's permit may sell alcoholic beverages as follows:
(1) A holder of a beer dealer's permit may sell beer as provided under IC 7.1-3-5.
(2) A holder of a beer dealer's permit that also holds a cold beer dealer's permit under this chapter may also sell cold beer to customers for consumption only off the licensed premises.
Sec. 3. The holder of a cold beer dealer's permit is entitled to:
(1) purchase beer only from a permittee entitled to sell to the holder of the cold beer dealer's permit under this title; and
(2) possess and sell cold beer for consumption off the licensed premises.
Sec. 4. The holder of a beer dealer's permit that also holds a cold beer dealer's permit under this chapter may not sell beer for carryout, or delivery to a customer's residence or office, in a quantity that exceeds a total of eight hundred sixty-four (864) ounces in a single transaction as provided under IC 7.1-3-5-3.
Sec. 5. A cold beer dealer's permit, for purposes of this title, is considered a separate and distinct type of dealer's permit. It does not affect the rights, privileges, and restrictions applicable to any other type of dealer's permit. The rights, privileges, and restrictions provided in this title for a cold beer dealer's permit apply only to the sale of cold beer.
(1) Five hundred dollars ($500), if the dealer sells only beer, only liquor, or only wine.
(2) Seven hundred fifty dollars ($750), if the dealer sells:
(A) both beer and wine but no liquor;
(B) both wine and liquor but no beer; or
(C) both beer and liquor but no wine.
(3) One thousand dollars ($1,000), if the dealer sells beer, wine, and liquor.
[EFFECTIVE JULY 1, 2011]: Sec. 12.7. An annual permit fee of five
hundred dollars ($500) is imposed for a cold beer dealer's permit
issued under IC 7.1-3-28.
(1) Civic center.
(2) Convention center.
(3) Sports arena.
(4) Bowling center.
(5) Bona fide club.
(6) Drug store.
(7) Grocery store.
(8) Boat.
(9) Dining car.
(10) Pullman car.
(11) Club car.
(12) Passenger airplane.
(13) Horse racetrack facility holding a recognized meeting permit under IC 4-31-5.
(14) Satellite facility (as defined in IC 4-31-2-20.5).
(15) Catering hall under IC 7.1-3-20-24 that is not open to the public.
(16) That part of a hotel or restaurant which is separate from a room in which is located a bar over which alcoholic beverages are sold or dispensed by the drink.
(17) Entertainment complex.
(18) Indoor golf facility.
(19) A recreational facility such as a golf course, bowling center, or similar facility that has the recreational activity and not the sale of food and beverages as the principal purpose or function of the person's business.
(20) A licensed premises owned or operated by a postsecondary educational institution described in IC 21-17-6-1.
(21) An automobile racetrack.
(22) An indoor theater under IC 7.1-3-20-26.
(23) A package liquor store, if the requirements of subsection (c) are met.
(b) For the purpose of this subsection, "food" means meals prepared on the licensed premises. It is lawful for a minor to be on licensed premises in a room in which is located a bar over which alcoholic beverages are sold or dispensed by the drink if all the following conditions are met:
(1) The minor is eighteen (18) years of age or older.
(2) The minor is in the company of a parent, guardian, or family member who is twenty-one (21) years of age or older.
(3) The purpose for being on the licensed premises is the consumption of food and not the consumption of alcoholic beverages.
(c) It is lawful for a minor to be on the licensed premises of a package liquor store if the minor is:
(1) employed under section 13(1) of this chapter; or
(2) in the company of the minor's parent or guardian who is at least twenty-one (21) years of age.
