First Regular Session 118th General Assembly (2013)
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HOUSE ENROLLED ACT No. 1293
AN ACT to amend the Indiana Code concerning alcohol and tobacco.
Be it enacted by the General Assembly of the State of Indiana:
SOURCE: IC 7.1-1-3-32.5; (13)HE1293.1.1. -->
SECTION 1. IC 7.1-1-3-32.5 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 32.5. The term
"primary source of supply" means, in regard to the alcoholic beverage
being sold to a wholesaler:
(1) a an artisan distiller or distiller of the alcoholic beverage;
(2) a producer of the alcoholic beverage;
(3) a vintner of the alcoholic beverage;
(4) a rectifier of the alcoholic beverage;
(5) an importer into the United States of the alcoholic beverage;
(6) an owner of the alcoholic beverage at the time it becomes a
marketable product;
(7) a bottler of the alcoholic beverage;
(8) a brewer of the alcoholic beverage; or
(9) an agent specifically authorized to make sales to an Indiana
wholesaler by a person listed in subdivisions (1) through (8).
SOURCE: IC 7.1-2-3-16.5; (13)HE1293.1.2. -->
SECTION 2. IC 7.1-2-3-16.5, AS AMENDED BY P.L.15-2011,
SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2013]: Sec. 16.5. (a) As used in this section, "facility"
includes the following:
(1) A facility to which IC 7.1-3-1-25(a) applies.
(2) A tract that contains a premises that is described in
IC 7.1-3-1-14(c)(2).
(3) A horse track or satellite facility to which IC 7.1-3-17.7
applies.
(4) A riverboat or racetrack to which IC 7.1-3-17.5 applies.
(5) 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, an artisan distiller,
a distiller, a rectifier, or a vintner in exchange for compensation from
that permittee.
SOURCE: IC 7.1-3-8-3; (13)HE1293.1.3. -->
SECTION 3. IC 7.1-3-8-3, AS AMENDED BY P.L.94-2008,
SECTION 31, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2013]: Sec. 3. (a) The holder of a liquor wholesaler's permit
shall be entitled to sell liquor at wholesale.
(b) A liquor wholesaler shall be entitled to purchase liquor within
this state from a person who holds an artisan distiller's permit, 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; or
(4) liquor wholesaler'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.
SOURCE: IC 7.1-3-23-3; (13)HE1293.1.4. -->
SECTION 4. IC 7.1-3-23-3 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 3. The commission,
pursuant to section 2 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 an artisan distiller,
or a 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 7.1-3-23-4; (13)HE1293.1.5. -->
SECTION 5. IC 7.1-3-23-4 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 4. Additional Fine. The
commission, if a fine imposed pursuant to IC 1971, 7.1-3-23-2 is not
paid according to the order of commission, may suspend or add to the
period of suspension of a permit in the following increments:
(a) (1) A period of one (1) day for each one hundred dollars
($100) remaining unpaid if the permittee is a brewer, or an
artisan distiller, or a distiller.
(b) (2) A period of one (1) day for each fifty dollars ($50)
remaining unpaid if the permittee is a wholesaler of any type. and,
(c) (3) A period of one (1) day for each twenty-five dollars ($25)
remaining unpaid if the permittee is the holder of a permit of a
type not listed in (a) or (b) of this section. subdivision (1) or (2).
SOURCE: IC 7.1-3-27; (13)HE1293.1.6. -->
SECTION 6. IC 7.1-3-27 IS ADDED TO THE INDIANA CODE
AS A
NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2013]:
Chapter 27. Artisan Distiller's Permit
Sec. 1. As used in this chapter, "artisan distiller" means a
person who holds an artisan distiller's permit under this title.
Sec. 2. The commission may issue an artisan distiller's permit as
provided in this chapter to a person who desires to commercially
manufacture liquor.
Sec. 3. An artisan distiller may produce not more than ten
thousand (10,000) gallons of liquor in any calendar year. Liquor
produced by an artisan distiller that is sold through a wholesaler
licensed under IC 7.1-3-8 may not be counted toward the gallonage
limit.
Sec. 4. The commission may issue an artisan distiller's permit to
a person if the person is qualified to obtain the necessary permit or
license from the United States to own or operate an establishment
to manufacture liquor.
Sec. 5. (a) Except as provided in section 7 of this chapter, an
applicant for an artisan distiller's permit must meet all the
following requirements to be eligible for an artisan distiller's
permit:
(1) The permit applicant must hold one (1) of the following
permits for the three (3) year period immediately preceding
the date of the application:
(A) A farm winery permit under IC 7.1-3-12.
(B) A brewer's permit for a brewery described in
IC 7.1-3-2-7(5).
(C) A distiller's permit under IC 7.1-3-7.
(2) The permit applicant may not have more than one (1)
violation of this title during the three (3) year period
immediately preceding the date of the application.
(3) The permit applicant may not have any violation of this
title during the twelve (12) month period immediately
preceding the date of the permit application.
(b) As used in this subsection, "qualifying permit" means a farm
winery, brewer's, or distiller's permit under subsection (a)(1)(A),
(a)(1)(B), or (a)(1)(C) that is required in order to hold an artisan
distiller's permit. The same persons must directly or indirectly own
and control one hundred percent (100%) of the entity that holds
the qualifying permit and the artisan distiller's permit.
Sec. 6. A holder of an artisan distiller's permit may also hold
one (1) of the following:
(1) A farm winery permit.
(2) A brewer's permit for a brewery described in
IC 7.1-3-2-7(5).
(3) A distiller's permit under IC 7.1-3-7.
Sec. 7. (a) This section applies only to a person that, on January
1, 2014:
(1) holds the necessary permit or license from the United
States to own or operate an establishment to manufacture
liquor; and
(2) does not hold any of the permits listed in section 5(a)(1) of
this chapter.
(b) A person must meet all the following requirements to be
eligible for an artisan distiller's permit under this section:
(1) Any person (except for a person under subdivision (2))
who sells or furnishes liquor by the bottle or glass on the
premises of the artisan distillery:
(A) must have held for at least three (3) years an employee
permit under IC 7.1-3-18-9 that authorizes the person to
perform bartending duties;
(B) must have completed any alcohol server program or
alcohol server training program refresher courses
required under IC 7.1-3-1.5; and
(C) may not have any violations under this title.
(2) The applicant for the artisan distiller's permit and any
management representative of the applicant must complete an
alcohol server program or a trainer program established or
approved under IC 7.1-3-1.5-5.5 or IC 7.1-3-1.5-6 not more
than one (1) year before the date of the application for the
artisan distiller's permit.
(c) Except as provided in subsection (f)(2), the person may not
be required to fulfill the requirements of section 5 of this chapter.
(d) If the person is issued an artisan distiller's permit under this
section, the person must meet the following requirements for the
period set forth in subsection (e):
(1) Any person selling or furnishing liquor on the premises of
the artisan distillery (except for a person under subsection
(b)(2)) must meet the requirements of subsection (b)(1).
(2) The holder of the artisan distiller's permit and any
management representative of the holder of the artisan
distiller's permit must successfully complete refresher courses
under IC 7.1-3-1.5 not later than three (3) years after the date
the holder or representative completes the initial server
program or trainer program.
(e) A person who is issued an artisan distiller's permit under this
section must meet the requirements in subsection (d) until the later
of:
(1) three (3) years after the date on which the initial artisan
distiller's permit is issued; or
(2) the date that the holder of the artisan distiller's permit has
one (1) twelve (12) month period without a violation of this
title.
(f) Upon fulfilling the requirements of subsections (d) and (e), a
person who is issued an artisan distiller's permit under this section
must meet the following requirements for as long as the person
holds the permit:
(1) Any person who sells or furnishes liquor on the premises
of the artisan distillery (except for a person under subsection
(b)(2)) must have an employee permit under IC 7.1-3-18-9 and
be otherwise authorized by the commission to perform
bartending duties. However, the person is not required to:
(A) hold an employee bartending permit for three (3) years
before selling or furnishing liquor; and
(B) not have any violations under this title.
(2) The holder of the artisan distiller's permit and any
management representative of the holder of the artisan
distiller's permit are subject to the same alcohol server
training requirements and refresher course requirements as
the holder of an artisan distiller's permit that meets the
requirements of section 5 of this chapter.
Sec. 8. (a) The holder of an artisan distiller's permit may do only
the following:
(1) Manufacture liquor, including blending liquor purchased
from another manufacturer with liquor the artisan distiller
manufactures under section 11 of this chapter.
(2) Bottle liquor manufactured by the artisan distiller.
(3) Store liquor manufactured by the artisan distiller.
(4) Transport, sell, and deliver liquor manufactured by the
artisan distiller to:
(A) places outside Indiana; or
(B) the holder of a liquor wholesaler's permit under
IC 7.1-3-8.
(5) Sell liquor manufactured by the artisan distiller to
consumers by the drink, bottle, or case from the premises of
the distillery where the liquor was manufactured.
(6) Serve complimentary samples of the liquor manufactured
by the artisan distiller to consumers on the premises of the
distillery where the liquor was manufactured.
(b) The holder of an artisan distiller's permit who provides
samples or sells liquor by the glass must furnish the minimum food
requirements prescribed by the commission.
Sec. 9. An artisan distiller may not sell liquor to a retailer or
dealer.
Sec. 10. An artisan distiller may not ship liquor or cause liquor
to be shipped to a consumer.
Sec. 11. An artisan distiller may blend liquor that the artisan
distiller obtains from another manufacturer with liquor that the
artisan distiller manufactures. The artisan distiller may sell the
blended liquor as liquor that the artisan distiller manufactures
only if the final product contains at least sixty percent (60%) of
liquor that was fermented and distilled from raw materials by the
artisan distiller at the licensed premises of the artisan distiller.
Sec. 12. (a) This section applies only to a person who:
(1) holds an artisan distiller's permit; and
(2) holds an interest in a farm winery permit under
IC 7.1-3-12.
(b) An artisan distiller may:
(1) serve samples of liquor that the artisan distiller
manufactures; and
(2) sell bottles and cases of liquor that the artisan distiller
manufactures;
on the licensed premises where the wine is manufactured only if the
wine is manufactured on the same premises where the artisan
distiller manufactures liquor.
Sec. 13. (a) This section applies only to a person who:
(1) holds an artisan distiller's permit; and
(2) holds an interest in a brewer's permit for a brewery
described in IC 7.1-3-2-7(5).
(b) An artisan distiller may:
(1) serve samples of liquor that the artisan distiller
manufactures; and
(2) sell bottles and cases of liquor that the artisan distiller
manufactures;
on the licensed premises where the beer is manufactured only if the
beer is manufactured on the same premises where the artisan
distiller manufactures liquor.
Sec. 14. (a) This section applies only to the holder of an artisan
distiller's permit that also holds an interest in a distiller's permit
under IC 7.1-3-7.
(b) An artisan distiller may not:
(1) serve complimentary samples of liquor; and
(2) sell liquor;
manufactured under the distiller's permit issued under IC 7.1-3-7
on the premises of the artisan distillery or at any other location
that the holder of the artisan distiller's permit is authorized to sell
and serve samples of liquor manufactured under the artisan
distiller's permit.
Sec. 15. (a) An artisan distiller's permit shall be issued for a
period of two (2) years.
(b) The commission shall charge a permit fee of two hundred
fifty dollars ($250) annually to the holder of an artisan distiller's
permit. The holder of an artisan distiller's permit shall pay the
permit fee to the chairman on the anniversary of the date of the
issuance of the original permit.
SOURCE: IC 7.1-4-3-2; (13)HE1293.1.7. -->
SECTION 7. IC 7.1-4-3-2 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 2. Persons Liable for
Tax. The liquor excise tax shall be levied against a permittee who holds
an artisan distiller's permit, a distiller's permit, a rectifier's permit, a
liquor wholesaler's permit, a dining car liquor permit, a vintner's
permit, a wine wholesaler's permit, a dining car wine permit, or a boat
wine permit, whether the sale or gift, or withdrawal for sale or gift, is
to a person authorized to purchase or receive it or not. However, the
same article shall be taxed only once for liquor excise tax purposes.
SOURCE: IC 7.1-4-7-1; (13)HE1293.1.8. -->
SECTION 8. IC 7.1-4-7-1, AS AMENDED BY P.L.165-2006,
SECTION 37, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2013]: Sec. 1. The chairman shall collect the required annual
license fee paid in connection with the issuance of a brewer's permit,
a beer wholesaler's permit, a temporary beer permit, a dining car permit
of any type, a boat permit of any type, an artisan distiller's permit, a
distiller's permit, a rectifier's permit, a liquor wholesaler's permit, a
vintner's permit, a farm winery permit, a farm winery brandy distiller's
permit, a wine wholesaler's permit, a wine bottler's permit, a temporary
wine permit, a direct wine seller's permit, a salesman's permit, and a
carrier's alcoholic permit.
SOURCE: IC 7.1-5-1-9.5; (13)HE1293.1.9. -->
SECTION 9. IC 7.1-5-1-9.5, AS AMENDED BY P.L.1-2006,
SECTION 150, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2013]: Sec. 9.5. (a) An in state or an out of state
vintner, artisan distiller, distiller, brewer, rectifier, or importer that:
(1) holds a basic permit from the federal Bureau of Alcohol,
Tobacco, Firearms and Explosives; and
(2) knowingly violates IC 7.1-5-11-1.5;
commits a Class A misdemeanor.
(b) A person who:
(1) is not described in subsection (a); and
(2) knowingly violates IC 7.1-5-11-1.5;
commits a Class D felony.
(c) If the chairman of the alcohol and tobacco commission or the
attorney general determines that a vintner, an artisan distiller, a
distiller, a brewer, a rectifier, or an importer that holds a basic permit
from the federal Bureau of Alcohol, Tobacco, Firearms and Explosives
has made an illegal shipment of an alcoholic beverage to consumers in
Indiana, the chairman shall:
(1) notify the federal Bureau of Alcohol, Tobacco, Firearms and
Explosives in writing and by certified mail of the official
determination that state law has been violated; and
(2) request the federal bureau to take appropriate action.
SOURCE: IC 7.1-5-9-6; (13)HE1293.1.10. -->
SECTION 10. IC 7.1-5-9-6 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 6. Liquor Permittee's
Interests Limited. It is unlawful for the holder of a distiller's, rectifier's,
or liquor wholesaler's permit to have an interest in a beer permit of any
type under this title. This section does not apply to the holder of an
artisan distiller's permit that has an interest in a brewer's permit
under IC 7.1-3-2-7(5).
SOURCE: IC 7.1-5-9-7; (13)HE1293.1.11. -->
SECTION 11. IC 7.1-5-9-7 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 7. Distillers and
Rectifiers: Prohibited Interests. It is unlawful for the holder of an
artisan distiller's, a distiller's, or a rectifier's permit to own, acquire,
possess or cause to be transferred to him, the holder shares of stock of
a corporation that holds an Indiana permit to sell alcoholic beverages
at retail, or in a permit to sell at retail in this state, or to own or acquire
an interest in the business being conducted under the permit, or in or
to shares of stock in a corporation that owns a permit to sell at retail.
SOURCE: IC 7.1-5-9-8; (13)HE1293.1.12. -->
SECTION 12. IC 7.1-5-9-8 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 8. Certain Interests
Prohibited. The holder of an artisan distiller's permit, a distiller's
permit, or a rectifier's permit may not own, acquire, or possess a permit
to sell liquor at wholesale. A distiller or rectifier may not have an
interest in the business of a permittee who is authorized to sell beer,
liquor, or wine at wholesale or retail.
SOURCE: IC 7.1-5-9-13; (13)HE1293.1.13. -->
SECTION 13. IC 7.1-5-9-13 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 13. Certain Interests
Prohibited. The proprietor of a drug store, a corporation holding an
artisan distiller's permit, a distiller's permit, or a brewer's permit or
a wholesaler's permit or a permit to retail or deal in alcoholic
beverages, a wholesale drug company, and a person who is the
proprietor of a wholesale drug company may not own or control or
participate in the permit of a package liquor store, or in its business, or
in its establishment.
SOURCE: IC 7.1-5-10-12; (13)HE1293.1.14. -->
SECTION 14. IC 7.1-5-10-12 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 12.
Credit Sales
Prohibited. It is unlawful for a permittee to sell, offer to sell, purchase
or receive, an alcoholic beverage for anything other than cash. A
permittee who extends credit in violation of this section shall have no
right of action on the claim. This section shall not prohibit a permittee
from crediting to a purchaser the actual price charged for a package or
an original container returned by the original purchaser as a credit on
a sale. This section shall not prohibit a permittee from refunding to a
purchaser the amount paid by the purchaser for a container, or as a
deposit on a container, if it is returned to the permittee. This section
shall not prohibit a manufacturer from extending usual and customary
credit for alcoholic beverages sold to a customer who maintains a place
of business outside this state when the alcoholic beverages are actually
shipped to a point outside this state. This section shall not prohibit an
artisan distiller, a distiller, or a liquor or wine wholesaler from
extending credit on liquor, flavored malt beverages, and wine sold to
a permittee for a period of fifteen (15) days from the date of invoice,
date of invoice included. However, if the fifteen (15) day period passes
without payment in full, the wholesaler shall sell to that permittee on
a cash on delivery basis only.
HEA 1293 _ Concur
Figure
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