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HOUSE BILL No. 1320

Citations Affected: IC 7.1-3-23; IC 35-46-1-10.1.

Synopsis: Retailer permittee employee serving to minor. Provides that if the alcohol and tobacco commission (commission) initiates a permit violation proceeding against a retailer permittee for furnishing an alcoholic beverage to a minor, the commission must also initiate a permit violation proceeding against the employee of the retailer who served the minor. Provides that for a violation that occurs after June 30, 2011, if the commission finds that the employee unlawfully furnished an alcoholic beverage to a minor, the commission is required to do the following: (1) For a first violation, issue a disciplinary warning and impose a civil penalty of $100. (2) For a second or subsequent violation, suspend or deny the renewal of an employee permit for two years after the date of the violation and impose a civil penalty of $200. Provides that if an employee is convicted of a criminal violation for furnishing an alcoholic beverage to a minor, in addition to any other penalty, a civil judgment may be imposed against the agent or employee of: (1) $100 for the employee's or agent's first violation; or (2) $200 for the employee's or agent's second or subsequent violation.

Effective: July 1, 2011.

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Yarde

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    January 13, 2011, read first time and referred to Committee on Public Policy.

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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 2010 Regular Session of the General Assembly.

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    A BILL FOR AN ACT to amend the Indiana Code concerning alcohol and tobacco.

SOURCE: IC 7.1-3-23-3; (11)IN1320.1.1. -->     SECTION 1. IC 7.1-3-23-3 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 3. The commission, pursuant to section 2 of this chapter, and subject to section 9.5 of this chapter, may impose upon a permittee the following civil penalties:
        (1) An amount of not more than four thousand dollars ($4,000) for each violation if the permittee is a brewer or distiller.
        (2) An amount of not more than two thousand dollars ($2,000) for each violation if the permittee is a wholesaler of any type.
        (3) An amount of not more than one thousand dollars ($1,000) for each violation if the permittee is the holder of a permit of a type not listed in subdivision (1) or (2).

SOURCE: IC 7.1-3-23-26.1; (11)IN1320.1.2. -->     SECTION 2. IC 7.1-3-23-26.1, AS AMENDED BY P.L.161-2005, SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 26.1. (a) A retailer permittee or dealer permittee who violates IC 7.1-3-1.5-13, IC 7.1-5-7-4, or IC 7.1-5-7-8 through IC 7.1-5-7-13 may be fined, have the permittee's permit suspended, or be fined and have the permittee's permit suspended, as determined by

the commission; however, if the penalty imposed by the commission exceeds a fine and three (3) day suspension, the commission must issue written findings of fact and conclusions which show the necessity of the penalty. If the retailer or dealer permittee commits a subsequent violation of the provisions listed in this subsection within twelve (12) months of the first violation, the commission may fine the permittee, fine the permittee and suspend the permittee's permit, or revoke the permittee's permit; however, if the penalty exceeds a fine and suspension of more than fifteen (15) days, the commission must issue written findings of fact and conclusions which show the necessity of the penalty.
    (b) The holder of an employee permit who violates IC 7.1-5-7-4 or IC 7.1-5-7-8 IC 7.1-5-7-9 through IC 7.1-5-7-13 may be fined, have the permittee's permit suspended, be both fined and have the permittee's permit suspended, or have the permittee's permit revoked, as determined by the commission. The holder of an employee permit who violates IC 7.1-5-7-8 is subject to the penalties set forth in section 9.5 of this chapter.

SOURCE: IC 7.1-3-23-9.5; (11)IN1320.1.3. -->     SECTION 3. IC 7.1-3-23-9.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 9.5. (a) If:
        (1) the commission initiates a permit violation proceeding against the holder of a retailer permit for a violation of IC 7.1-5-7-8; and
        (2) the permit violation under subdivision (1) occurred because an employee of the retailer unlawfully furnished an alcoholic beverage to a minor in violation of IC 7.1-5-7-8;
the commission shall also initiate a permit violation proceeding against the employee for violating IC 7.1-5-7-8.
    (b) This subsection applies only to a violation by an employee that occurs after June 30, 2011. If the commission finds as a result of the proceeding that the holder of the employee permit violated IC 7-1-5-7-8, the commission shall do the following:
        (1) If the violation is the employee's first violation, the commission shall:
            (A) issue the employee a disciplinary warning; and
            (B) impose on the employee a civil penalty of one hundred dollars ($100).
        (2) If the violation is the employee's second or subsequent violation, the commission shall:
            (A) suspend or deny the renewal of the employee's permit for two (2) years after the date of the violation; and

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            (B) impose on the employee a civil penalty of two hundred dollars ($200).
     (c) If the employee does not pay a civil penalty imposed by the commission under subsection (b), the commission may suspend or lengthen the period of the suspension of the employee's permit as set forth in section 4 of this chapter.

SOURCE: IC 35-46-1-10.1; (11)IN1320.1.4. -->     SECTION 4. IC 35-46-1-10.1, AS ADDED BY P.L.94-2008, SECTION 61, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 10.1. (a) If a permit holder or an agent or employee of a permit holder violates IC 7.1-5-7-8 on the licensed premises, in addition to any other penalty, a civil judgment may be imposed against the permit holder as follows:
        (1) If the licensed premises at that specific business location has not been issued a citation or summons for a violation of IC 7.1-5-7-8 in the previous one hundred eighty (180) days, a civil penalty of up to two hundred dollars ($200).
        (2) If the licensed premises at that specific business location has had one (1) citation or summons for a violation of IC 7.1-5-7-8 in the previous one hundred eighty (180) days, a civil penalty of up to four hundred dollars ($400).
        (3) If the licensed premises at that specific business location has had two (2) citations or summonses for a violation of IC 7.1-5-7-8 in the previous one hundred eighty (180) days, a civil penalty of up to seven hundred dollars ($700).
        (4) If the licensed premises at that specific business location has had three (3) or more citations or summonses for a violation of IC 7.1-5-7-8 in the previous one hundred eighty (180) days, a civil penalty of up to one thousand dollars ($1,000).
     (b) If an agent or employee of a permit holder violates IC 7.1-5-7-8 on the licensed premises, in addition to any other penalty, a civil judgment may be imposed against the agent or employee as follows:
        (1) A civil judgment of one hundred dollars ($100) for the employee's or agent's first violation.
        (2) A civil judgment of two hundred dollars ($200) for the employee's or agent's second or subsequent offense.
    (b) (c) The defenses set forth in IC 7.1-5-7-5.1 are available to a permit holder or an agent or employee of a permit holder in an action under this section.
    (c) (d) Unless a person less than twenty-one (21) years of age buys or receives an alcoholic beverage under the direction of a law enforcement officer as part of an enforcement action, a permit holder

that sells alcoholic beverages is not liable under this section unless the person less than twenty-one (21) years of age who bought or received the alcoholic beverage is charged for violating IC 7.1-5-7-7.
    (d) (e) All civil penalties collected under this section shall be deposited in the alcohol and tobacco commission's enforcement and administration fund under IC 7.1-4-10.