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Indiana General Assembly· HB 1275Public Law 163

Alcohol and tobacco commission matters., the official text

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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 ENROLLED ACT No. 1275

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

   Be it enacted by the General Assembly of the State of Indiana:

   SECTION 1. IC 4-36-2-20, AS AMENDED BY P.L.145-2021,
SECTION 16, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 20. "Type II gambling game" means a pull tab,
punchboard, or tip board game approved by the Indiana gaming
commission for play under IC 4-32.3, including:

      (1) raffles;
      (2) progressive or carryover pull tab games; and
      (3) sports-themed tip board and pull tab games approved by the
      commission in the commission's September 16, 2019,
      memorandum and waiver. used with professional or National
      Collegiate Athletic Association Division I sporting events.
   SECTION 2. IC 4-36-5-5, AS AMENDED BY P.L.32-2023,
SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 5. (a) Except for a raffle game, the total prizes
awarded for one (1) type II gambling game may not exceed ten
thousand dollars ($10,000).
   (b) A single prize awarded for one (1) winning ticket in a type II
pull tab, punchboard, or tip board gambling game may not exceed five
hundred ninety-nine dollars ($599).
   (c) A single prize awarded for one (1) winning ticket on a seal card
in a type II pull tab gambling game may not exceed one thousand
dollars ($1,000).

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   (d) A single prize awarded for one (1) winning ticket on a
progressive or carryover pull tab game in a type II gambling game may
not exceed five thousand dollars ($5,000).

   (e) The selling price for one (1) ticket for a type II gambling game
under IC 4-36-2-20(1) or IC 4-36-2-20(2) may not exceed five dollars
($5). The selling price for one (1) ticket for a type II gambling game
under IC 4-36-2-20(3) may not exceed ten dollars ($10). Tickets sold
for less than one dollar ($1) must be sold for a price specified in section
6(b) of this chapter.

   SECTION 3. IC 6-7-2-8, AS AMENDED BY THE TECHNICAL
CORRECTIONS BILL OF THE 2025 GENERAL ASSEMBLY, IS
AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2025]:
Sec. 8. (a) A distributor, including a person that sells taxable products
through an Internet web site, a website, must obtain a license under
this section before it distributes taxable products in Indiana. The
department shall issue licenses to applicants that qualify under this
section. A license issued under this section is valid for one (1) year
unless revoked or suspended by the department and is not transferable.

   (b) An applicant for a license under this section must submit proof
to the department of the appointment of an agent for service of process
in Indiana if the applicant is:

      (1) an individual whose principal place of residence is outside
      Indiana; or
      (2) a person, other than an individual, that has its principal place
      of business outside Indiana.
   (c) To obtain or renew a license under this section, a person must:
      (1) submit, for each location where it intends to distribute taxable
      products, an application that includes all information required by
      the department;
      (2) pay a fee of twenty-five dollars ($25) at the time of
      application; and
      (3) at the time of application, post a bond, issued by a surety
      company approved by the department, in an amount not less than
      one thousand dollars ($1,000) and conditioned on the applicant's
      compliance with this chapter.
   (d) If business is transacted at two (2) or more places by one (1)
distributor, a separate license must be obtained for each place of
business.
   (e) Each license must be numbered, show the name and address of
the distributor, and be posted in a conspicuous place at the place of
business for which it is issued.
   (f) If the department determines that a bond provided by a licensee

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is inadequate, the department may require a new bond in the amount
necessary to fully protect the state.

   (g) A distributor issued a license under this section is prohibited
from selling, using, or distributing flavored nitrous oxide. If a
distributor violates this subsection, the department may suspend
or revoke the distributor's license and impose sanctions on the
distributor in an amount equal to the cost of disposing of the
flavored nitrous oxide.

   SECTION 4. IC 7.1-1-3-47.5, AS AMENDED BY P.L.220-2023,
SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 47.5. (a) "Tobacco product", except as provided
in subsection (b), has the meaning set forth in IC 7.1-6-1-3.

   (b) "Tobacco product", for purposes of IC 7.1-3-18.5, means a
product that:

      (1) contains tobacco or nicotine, including e-liquid (as defined by
      IC 7.1-7-2-10); that contains nicotine;
      (2) is intended for human consumption; and
      (3) is not approved by the federal Food and Drug Administration
      for tobacco cessation.
   SECTION 5. IC 7.1-2-3-17 IS REPEALED [EFFECTIVE JULY 1,
2025]. Sec. 17. Registration Requirements. The commission shall have
the power to require the registration of all brands, formulas, analyses,
labels, and trademarks used, or proposed to be used, in selling or
advertising alcoholic beverages. The commission shall not have the
power to require the disclosure of formulas that are verified trade
secrets.
   SECTION 6. IC 7.1-2-4-14 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 14. Local Board
Organization. A local board shall meet and organize immediately
following the appointment of its members. The local board shall elect
one (1) of its members to serve as president. The president shall preside
at the meetings of the board. and shall sign the minutes of meetings.
The local board also shall elect one (1) of its members to serve as
secretary. The secretary shall keep the minutes of meetings and other
records, attest the signature of the president electronically record all
votes taken by the local board and perform other duties assigned to
him by the board.
   SECTION 7. IC 7.1-2-4-15 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 15. Meetings. Meetings
of the local board shall be held in the office of the clerk of the circuit
court, or at another place provided by the board of county
commissioners. It shall be the duty of a local board member to attend

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the meetings of his the local board and to discharge the duties of his
office. set forth in this chapter. Any member of a local board may
administer oaths. A meeting of a local board called for the purpose of
a public investigation of an application for a permit may be continued
from day to day, or adjourned until a later meeting of the local board in
the discretion of the designated representative of the commission.

   SECTION 8. IC 7.1-3-1-3.1 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 3.1. (a)
Notwithstanding section 3 of this chapter, any member of the
commission may issue an original letter of extension extending the
term of a permit for a maximum period of ninety (90) days for good
cause shown upon the written request of the permittee and payment of
the fee if required.

   (b) Upon the expiration of an original letter of extension, or any
renewal thereof, if good cause still exists, subsequent renewals of the
extension may be granted to that permittee only upon the affirmative
vote of a majority of the members of the commission. Any member of
the commission may issue a subsequent extension if the need for a
subsequent extension is due to an act or omission of:

      (1) the commission;
      (2) a local board; or
      (3) a third party that is unrelated to the permittee involved
      and is not employed by or under the control of the permittee.
   SECTION 9. IC 7.1-3-1-6.4, AS ADDED BY P.L.167-2024,
SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 6.4. (a) This section applies to the holder of one
(1) or more of the following:
      (1) A retailer's permit.
      (2) A craft manufacturer's permit, if alcoholic beverages are
      served for consumption on the licensed premises.
   (b) A permit holder must maintain during the permit term:
      (1) a liquor liability insurance policy; or
      (2) an endorsement to a general liability insurance policy;
that has total liquor liability coverage. of at least five hundred
thousand dollars ($500,000); or (2) a liquor liability endorsement: (A)
to a general liability insurance policy; and (B) that has total coverage
of at least five hundred thousand dollars ($500,000). However,
   (c) The insurance coverage requirements under subsection (b) do
not apply:
      (1) while a permit is on deposit under IC 7.1-3-1.1; or
      (2) if the establishment that operates under the permit has
      annual gross sales from the sale of alcoholic beverages for on

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      premises consumption of less than twenty-five thousand
      dollars ($25,000).
   (c) (d) If an establishment operates under:
      (1) a retailer's permit; and
      (2) a craft manufacturer's permit;
the insurance coverage requirements under subsection (b) apply to the
establishment as a whole. The permit holder is not required to maintain
the total insurance coverage requirements for each permit that is issued
to the establishment.
   (d) (e) A permit holder must provide the commission with proof of
insurance coverage:
      (1) to apply for or renew a permit;
      (2) before the commission may make a permit active that is on
      deposit under IC 7.1-3-1.1; or
      (3) at any time, upon the request of the commission.
   (e) (f) The commission may deny, suspend, revoke, or not renew a
permit, if the permit holder fails to maintain the insurance coverage
required under this section.
   (f) (g) After June 30, 2024, the commission may not:
      (1) issue, renew, or transfer a permit; or
      (2) make a permit active that is on deposit under IC 7.1-3-1.1;
unless the permit applicant or permit holder complies with this section.
This subsection expires July 1, 2027.
   (g) (h) A permit holder that holds an active permit issued before
July 1, 2024, must comply with this section not later than January 1,
2025, or the commission may suspend or revoke the permit. This
subsection expires July 1, 2027.
   SECTION 10. IC 7.1-3-1-25, AS AMENDED BY P.L.145-2024,
SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 25. (a) A county, city, town, or township that by
itself or in combination with any other body of a county, city, town, or
township acquires by ownership or by lease any stadium, exhibition
hall, auditorium, theater, convention center, civic center, or park or
public recreation area with a permanent event or entertainment space
may permit the retail sale of alcoholic beverages upon the premises if:
      (1) the governing board of the facility; or
      (2) a person that has an agreement with the governing board
      of the facility to act as concessionaire for the permitted
      premises;
first applies for and secures the necessary permits as required by this
title.
   (b) A:

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      (1) county or township; or
      (2) person that has an agreement with the county or township
      to act as concessionaire for the permitted premises;
may be issued a permit for the retail sale of alcoholic beverages on the
premises of any community center, including a clubhouse, pavilion, or
social center that is located within a public park or operated by the
township.
   (c) A county, city, town, or township that owns a golf course may
permit the retail sale of alcoholic beverages upon the premises of the
golf course if:
      (1) the governing board of the golf course; or
      (2) a person that has an agreement with the governing board
      of the golf course to act as concessionaire for the golf course;
first applies for and secures the necessary permits required by this title.
   (d) A:
      (1) county, city, town, or township that owns a marina; or
      (2) person that has an agreement with the county, city, town,
      or township to act as concessionaire for the marina;
may be issued a permit for the retail sale of alcoholic beverages on the
premises of the marina. The permit may include the carryout sale of
alcoholic beverages in accordance with IC 7.1-3-4-6(c),
IC 7.1-3-9-9(c), IC 7.1-3-14-4(c), and 905 IAC 1-29 but may not
include at-home delivery of alcoholic beverages. However, the county,
city, town, or township, or a person that has an agreement with the
county, city, town, or township to act as concessionaire for the
permitted premises, must apply for and secure the necessary permits
that this title requires.
   (e) Notwithstanding subsection (a), the commission may issue a
civic center permit to a person that:
      (1) by the person's self or in combination with another person is
      the proprietor, as owner or lessee, of an entertainment complex;
      or
      (2) has an agreement with a person described in subdivision (1)
      to act as a concessionaire for the entertainment complex for the
      full period for which the permit is to be issued.
   SECTION 11. IC 7.1-3-1.5-1, AS AMENDED BY P.L.285-2019,
SECTION 16, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 1. As used in this chapter, "alcohol server" means
the following:
      (1) A person who works on the licensed premises of a retailer
      permittee as a:

         (A) manager;

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         (B) bartender; or
         (C) waiter or a waitress; or
         (D) contractor or employee responsible for examining an
         individual's identification to determine the individual's
         age, including controlling the entry of individuals to a
         licensed premises restricted to those individuals at least
         twenty-one (21) years of age.
      (2) A person who works on the licensed premises of a dealer
      permittee as a:
         (A) manager; or
         (B) sales clerk.
      (3) A person who is the proprietor of or is employed by an art
      instruction studio under IC 7.1-5-8-4.6 that serves wine brought
      into the studio by patrons.
   SECTION 12. IC 7.1-3-2-7, AS AMENDED BY P.L.26-2024,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 7. The holder of a brewer's permit or an
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 manufactures, at all of the brewer's breweries, an
      aggregate of not more than ninety thousand (90,000) barrels of
      beer in a calendar year for sale or distribution within Indiana, the
      permit holder may do the following:
         (A) Sell and deliver a total of not more than thirty thousand
         (30,000) barrels of beer in a calendar year to a person holding
         a retailer or a dealer permit under this title. The total number
         of barrels of beer that the permit holder may sell and deliver
         under this clause in a calendar year may not exceed thirty
         thousand (30,000) barrels of beer.
         (B) Be the proprietor of a restaurant that is not subject to the
         minimum gross food sales or the minimum projected food
         sales set forth in 905 IAC 1-41-2.
         (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:

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            (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 make food available for consumption on the
         premises. A brewer may comply with the requirements of this
         clause by doing any of the following:
            (i) Allowing a vehicle of transportation that is a food
            establishment (as defined in IC 16-18-2-137) to serve food
            near the brewer's licensed premises.
            (ii) Placing menus in the brewer's premises of restaurants
            that will deliver food to the brewery.
            (iii) Providing food prepared at the brewery.
         (H) Sell and deliver beer to a consumer at the licensed
         premises of the brewer or at the residence of the consumer.
         Notwithstanding IC 7.1-1-3-20, the licensed premises may
         include the brewery parking lot or an area adjacent to the
         brewery that may only be used for the purpose of conveying
         alcoholic beverages and other nonalcoholic items to a
         customer subject to section 10 of this chapter, and may not be
         used for point of sale purposes or any other purpose. 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 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 at any address for which the
         brewer holds a brewer's permit issued under this chapter if the
         address is located within the same city boundaries in which the
         beer was manufactured.
         (J) With the approval of the commission, participate:
            (i) individually; or
            (ii) with other permit holders under this chapter, holders of
            artisan distiller's permits, holders of farm winery permits, or

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            any combination of holders described in this item;
         in a trade show or an exposition at which products of each
         permit holder participant are displayed, promoted, and sold.
         All of the permit holders may occupy the same tent, structure,
         or building. The commission may not grant to a holder of a
         permit under this chapter approval under this clause to
         participate in a trade show or exposition for more than
         forty-five (45) days in a calendar year.
         (K) Store or condition beer in a secure building that is:

            (i) separate from the brewery; and
            (ii) owned or leased by the permit holder.
         (L) Transfer beer from a building described in clause (K) back
         to the brewery.
         (M) Sell or transfer beer directly to a beer wholesaler from a
         building described in clause (K), but may not sell or transfer
         beer from the building to any other permittee or a consumer.
         The brewer shall maintain an adequate written record of the
         beer transferred:
            (i) between the brewery and the separate building; and
            (ii) from the separate building to the wholesaler.
         (N) Sell the brewery's beer to the holder of a supplemental
         caterer's permit issued under IC 7.1-3-9.5 for on-premises
         consumption only at an event that is held outdoors on property
         that is contiguous to the brewery as approved by the
         commission.
         (O) Receive liquor from the holder of a distiller's permit issued
         under IC 7.1-3-7 or the holder of an artisan distiller's permit
         under IC 7.1-3-27 that is located in the same county as the
         brewery for the purpose of carbonating and canning the liquor.
         Upon the completion of canning of the liquor, the product
         must be returned to the original production facility within
         forty-eight (48) hours. The activity under this clause is not an
         interest under IC 7.1-5-9.
         (P) Receive beer from another permit holder under this
         subdivision for the purpose of bottling and packaging the beer.
         Upon completion of bottling and packaging the beer, the
         product must be returned to the original permit holder who
         manufactured the beer. The number of barrels of beer that a
         permit holder receives, bottles, and packages under this clause
         may not exceed the number of barrels of beer that the permit
         holder produced from raw materials at the licensed premises
         of the permit holder in the same calendar year. The activity

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         under this clause is not an interest under IC 7.1-5-9.
         (Q) Sell or transfer beer directly to a food manufacturer
         located in Indiana that is registered with the federal Food and
         Drug Administration for the purpose of adding or integrating
         the beer into a product or recipe.
         (R) Manufacture beer for another permit holder under this
         subdivision. Upon completion of manufacturing the beer, the
         product must be transported to the permit holder for which the
         beer was manufactured. To qualify under this clause:

            (i) the permit holder for which the beer is manufactured
            must have manufactured not less than forty (40) barrels of
            beer produced from raw materials at the licensed premises
            of the permit holder in the previous calendar year; and
            (ii) the number of barrels of beer that a permit holder
            manufactures under this clause may not exceed the number
            of barrels of beer that the permit holder produced from raw
            materials at the licensed premises of the permit holder in the
            same calendar year.
         All records required by the federal Alcohol and Tobacco Tax
         and Trade Bureau regarding the number of barrels of beer
         produced from raw materials at the licensed premises of a
         permit holder must be made available to the commission upon
         request. The activity under this clause is not an interest under
         IC 7.1-5-9.
         (S) Sell, donate, transport, and deliver beer to a qualified
         organization for:
            (i) an allowable event under IC 7.1-3-6.1;
            (ii) a charity auction under IC 7.1-3-6.2; or
            (iii) an event under IC 7.1-3-6.3.
      (6) If the brewer's brewery manufactures more than ninety
      thousand (90,000) barrels of beer in a calendar year for sale or
      distribution within Indiana, the permit holder may 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 ninety thousand (90,000) 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.

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      (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.
      (10) Sell, donate, transport, and deliver beer to a qualified
      organization for:
         (A) an allowable event under IC 7.1-3-6.1;
         (B) a charity auction under IC 7.1-3-6.2; or
         (C) an event under IC 7.1-3-6.3.
   SECTION 13. IC 7.1-3-3-5, AS AMENDED BY P.L.153-2015,
SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 5. (a) The holder of a beer wholesaler's permit
may purchase and import from the primary source of supply, possess,
and sell at wholesale, beer and flavored malt beverages manufactured
within or without this state.
   (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; and
      (3) a holder of a beer retailer's permit, beer dealer's permit,
      temporary beer permit, dining car permit, boat permit, airplane
      permit, or supplemental caterer's permit; and
      (4) a qualified organization for:
         (A) an allowable event to which IC 7.1-3-6.1 applies; or
         (B) a charity auction to which IC 7.1-3-6.2 applies;
located within this state. The sale, donation to a qualified organization,
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;

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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) The holder of a beer wholesaler's permit may purchase, import,
possess, transport, sell, and deliver any commodity listed in
IC 7.1-3-10-5, unless prohibited by this title. However, 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, or
      supplemental caterer's permit.
   (f) A beer wholesaler may:
      (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).
   (g) A beer wholesaler may sell, donate, transport, and deliver
beer to a qualified organization for:
      (1) an allowable event under IC 7.1-3-6.1;
      (2) a charity auction under IC 7.1-3-6.2; or
      (3) an event under IC 7.1-3-6.3;
located within this state. The sale, donation to a qualified
organization, 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.
   SECTION 14. IC 7.1-3-4-2, AS AMENDED BY P.L.285-2019,
SECTION 19, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 2. (a) The commission shall not issue a beer
retailer's permit, except as otherwise authorized in this title and subject
to the other restrictions contained in this title, to the following persons:
      (1) An alien. A person who does not have lawful status (as
      defined in IC 9-13-2-92.3).
      (2) A person who is not of good repute in the community in which
      the person resides.

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      (3) A person who has been convicted within ten (10) years before
      the date of application of:

         (A) a federal crime having a sentence of at least one (1) year;
         (B) an Indiana Class A, Class B, or Class C felony (for a crime
         committed before July 1, 2014) or a Level 1, Level 2, Level 3,
         Level 4, or Level 5 felony (for a crime committed after June
         30, 2014); or
         (C) a crime in a state other than Indiana having a penalty equal
         to the penalty for an Indiana Class A, Class B, or Class C
         felony (for a crime committed before July 1, 2014) or a Level
         1, Level 2, Level 3, Level 4, or Level 5 felony (for a crime
         committed after June 30, 2014).
      However, this subdivision does not apply to a conviction that has
      been expunged under IC 35-38-9.
      (4) A person who does not own the premises to which the permit
      will be applicable, or who does not have a bona fide lease on the
      premises for the full period for which the permit is to be issued.
      (5) A law enforcement officer or an officer who is not an elected
      officer of a municipal corporation, or governmental subdivision,
      or of Indiana, charged with any duty or function in the
      enforcement of this title.
      (6) An officer or employee of a person engaged in the alcoholic
      beverage traffic, which person is a nonresident of Indiana, or is
      engaged in carrying on any phase of the manufacture of, traffic in,
      or transportation of alcoholic beverages without a permit under
      this title when a permit is required by this title.
      (7) If the permit applicant does not hold a brewer's permit, a
      person who leases from a person, or an officer or agent of that
      person, who holds a brewer's permit or a beer wholesaler's permit.
      (8) If the permit applicant does not hold a brewer's permit, a
      person who is indebted to a person who holds a brewer's permit
      or a beer wholesaler's permit, or an officer or agent of that person,
      for a debt secured by a lien, mortgage, or otherwise, upon the
      premises for which the beer retailer's permit is to be applicable,
      or upon any of the property or fixtures on the premises, or used,
      or to be used in connection with the premises.
      (9) A person whose place of business is conducted by a manager
      or agent, unless the manager or agent possesses the same
      qualifications required for the issuance of a beer retailer's permit
      to the person.
      (10) A minor.
      (11) A person non compos mentis.

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                                   14

      (12) A person who has held a permit under this title and who has
      had that permit revoked within one (1) year prior to the date of
      application for a beer retailer's permit.
      (13) A person who has made an application for a permit of any
      type which has been denied less than one (1) year prior to the
      person's application for a beer retailer's permit unless the first
      application was denied by reason of a procedural or technical
      defect.
      (14) A person who is not the proprietor of a restaurant located and
      being operated on the premises described in the application for
      the beer retailer's permit, or of a hotel, or of a club, owning, or
      leasing the premises as a part of it. The disqualification contained
      in this subdivision shall not apply to the qualifications for or
      affect the privileges to be accorded under a beer dealer's permit
      or a dining car beer permit.
   (b) Subsection (a)(10) does not prevent a minor from being a
stockholder in a corporation.
   SECTION 15. IC 7.1-3-4-6.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2025]: Sec. 6.5. A beer retailer may sell,
donate, transport, and deliver beer to a qualified organization for:
      (1) an allowable event under IC 7.1-3-6.1;
      (2) a charity auction under IC 7.1-3-6.2; or
      (3) an event under IC 7.1-3-6.3.
   SECTION 16. IC 7.1-3-5-3.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2025]: Sec. 3.5. A beer dealer may sell,
donate, transport, and deliver beer to a qualified organization for:
      (1) an allowable event under IC 7.1-3-6.1;
      (2) a charity auction under IC 7.1-3-6.2; or
      (3) an event under IC 7.1-3-6.3.
   SECTION 17. IC 7.1-3-6.1-2, AS AMENDED BY P.L.58-2019,
SECTION 24, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 2. As used in this chapter, "qualified organization"
has the meaning set forth in IC 4-32.3-2-31. For purposes of this
chapter, a qualified organization may also be a permittee.
   SECTION 18. IC 7.1-3-6.1-4, AS ADDED BY P.L.153-2015,
SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 4. (a) A qualified organization may give away as
a prize for an allowable event an alcoholic beverage that is:
      (1) purchased by or donated to the qualified organization by a
      permittee or person described in section 5 of this chapter;

HEA 1275 — Concur
                                   15

      (2) in sealed bottles or cases; and
      (3) provided for consumption off the premises only.
   (b) A donation:
      (1) from a permittee; and
      (2) to a qualified organization that is a permittee;
is subject to the requirements set forth in IC 7.1-3-6.3.
   SECTION 19. IC 7.1-3-6.1-6, AS ADDED BY P.L.153-2015,
SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 6. (a) An individual must:
      (1) be physically present at the allowable event; or
      (2) if the allowable event is an electronic raffle conducted
      under IC 4-32.3, participate using an electronic raffle
      software system, web application, method, or process
      approved by the commission;
in order to win an alcoholic beverage prize. The prize winner,
including the winner of an electronic raffle under subdivision (2),
must be given the alcoholic beverage prize in person by an individual
designated by the qualified organization.
   (b) The individual designated by the qualified organization to give
away an alcoholic beverage prize must be at least twenty-one (21) years
of age. The individual may not be required to obtain an employee's
permit under IC 7.1-3-18-9 or a temporary bartender's permit under
IC 7.1-3-18-11 to award a prize at an allowable event.
   (c) When giving away an alcoholic beverage prize, the individual
designated by the qualified organization shall comply with
IC 7.1-5-10-15, IC 7.1-5-10-23, and any other provision of this title that
applies to the furnishing of alcoholic beverages for consumption off the
premises.
   SECTION 20. IC 7.1-3-6.1-7, AS ADDED BY P.L.153-2015,
SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 7. An allowable event to which this chapter
applies may be conducted on premises that are not licensed under this
title for the sale of alcoholic beverages. An allowable event that is an
electronic raffle conducted under IC 4-32.3 may be conducted
using an electronic raffle software system, web application,
method, or process approved by the commission.
   SECTION 21. IC 7.1-3-6.2-1, AS AMENDED BY P.L.58-2019,
SECTION 26, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 1. As used in this chapter, "qualified organization"
has the meaning set forth in IC 4-32.3-2-31. For purposes of this
chapter, a qualified organization may also be a permittee.
   SECTION 22. IC 7.1-3-6.2-3, AS ADDED BY P.L.153-2015,

HEA 1275 — Concur
                                   16

SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 3. (a) A qualified organization may sell at auction
an alcoholic beverage that is:

      (1) purchased from or received as a donation from a permittee or
      person described in section 5 of this chapter;
      (2) in sealed bottles or cases; and
      (3) for consumption off the premises only.
   (b) A donation:
      (1) from a permittee; and
      (2) to a qualified organization that is a permittee;
is subject to the requirements set forth in IC 7.1-3-6.3.
   SECTION 23. IC 7.1-3-6.2-6, AS ADDED BY P.L.153-2015,
SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 6. (a) An individual:
      (1) must be physically present; or
      (2) if an auction is conducted online, participate
      electronically;
in order to bid on and purchase an alcoholic beverage at auction. The
successful bidder, including a successful bidder at an online auction,
must be given the alcoholic beverage in person by an individual
designated by the qualified organization.
   (b) The individual designated by the qualified organization to give
away an alcoholic beverage purchased at the auction must be at least
twenty-one (21) years of age. The individual may not be required to
obtain an employee's permit under IC 7.1-3-18-9 or a temporary
bartender's permit under IC 7.1-3-18-11 to give away an alcoholic
beverage purchased at the auction.
   (c) When giving away an alcoholic beverage purchased at the
auction, the individual designated by the qualified organization shall
comply with IC 7.1-5-10-15, IC 7.1-5-10-23, and any other provision
of this title that applies to the furnishing of alcoholic beverages for
consumption off the premises.
   SECTION 24. IC 7.1-3-6.3 IS ADDED TO THE INDIANA CODE
AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]:
   Chapter 6.3. Permittee Donations to Certain Qualified
Organizations
   Sec. 1. (a) This chapter applies to an event held by a qualified
organization:
      (1) under:

         (A) IC 7.1-3-6.1, at which donated alcoholic beverages are
         awarded as prizes; or

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                                   17

         (B) IC 7.1-3-6.2, at which donated alcoholic beverages are
         auctioned off;
      for consumption off the premises; or
      (2) at which alcoholic beverages that are donated to the
      qualified organization are served and consumed on the
      premises during the event.
   (b) The requirements imposed by this chapter on a donation to
a qualified organization that is a permittee do not apply if a
donation is made to a qualified organization that is not a permittee.
Nothing in this chapter prevents a permittee from making a
donation to a person that is not a permittee.
   Sec. 2. As used in this chapter, "permittee" means a person
listed in IC 7.1-3-6.1-5(1).
   Sec. 3. As used in this chapter, "qualified organization" has the
meaning set forth in IC 4-32.3-2-31. For purposes of this chapter,
a qualified organization may also be a permittee and is not
required to comply with the registration requirements of
IC 4-32.3-2-31(e) if the qualified organization meets the remaining
requirements of IC 4-32.3-2-31.
   Sec. 4. A qualified organization may serve alcoholic beverages
for consumption on the premises during an event that are:
      (1) purchased by or donated to the qualified organization by:
         (A) a permittee; or
         (B) a person that is not a permittee; and
      (2) in sealed bottles or cases.
   Sec. 5. Unless approved by the commission under subdivision
(7), the following restrictions apply to an event held by a qualified
organization if the qualified organization is a permittee:
      (1) The qualified organization may not accept a cash donation
      from another permittee.
      (2) The qualified organization may not accept a donation from
      a permittee in exchange for agreeing to accept:
         (A) alcoholic beverages; or
         (B) certain types or brands of alcoholic beverages;
      to the exclusion, in whole or in part, of alcoholic beverages or
      types or brands of alcoholic beverages from another
      permittee.
      (3) A permittee must provide the qualified organization, at the
      time of delivery, a written record of the amount of alcoholic
      beverages donated by the permittee.
      (4) The qualified organization must maintain a record of
      every alcoholic beverage:

HEA 1275 — Concur
                                   18

         (A) donated by a permittee; and
         (B) consumed during the event.
      (5) A permittee may not offer anything of value to another
      permittee in exchange for the other permittee making a
      donation to the qualified organization.
      (6) The qualified organization may not sell donated alcoholic
      beverages as part of the qualified organization's normal
      inventory.
      (7) A qualified organization that is a permittee may apply to
      the commission for permission to accept a cash donation from
      another permittee. The commission shall designate the form
      and manner for an application under this subdivision. The
      commission's determination regarding an application under
      this subdivision is final and not subject to administrative or
      judicial review.
   Sec. 6. (a) Subject to section 7 of this chapter, the commission
may adopt rules setting reasonable limits on the amount of
alcoholic beverages that a permittee may donate to a qualified
organization that is a permittee. The commission may establish a
method for calculating the maximum donation amount for an
event, using factors that include:
      (1) the estimated adult attendance at the event;
      (2) the event's duration;
      (3) the types of alcoholic beverages donated;
      (4) public health and safety considerations;
      (5) maintaining the integrity of the three (3) tier system; and
      (6) any other relevant factors.
   (b) A permittee must apply to the commission not later than
fifteen (15) days before the date of an event for the commission to
review and approve or deny a proposed donation to a qualified
organization that is a permittee.
   Sec. 7. (a) The commission may set limits on the amount of
alcoholic beverages that a permittee may donate to an individual
qualified organization that is a permittee in a calendar year.
   (b) The limit set by the commission under subsection (a) may
not exceed the following volume limits in a calendar year to an
individual qualified organization that is a permittee:
      (1) Five thousand (5,000) bottles of wine in seven hundred
      fifty (750) milliliter bottles.
      (2) Five thousand (5,000) bottles of liquor in seven hundred
      fifty (750) milliliter bottles.
      (3) One thousand (1,000) cases of bottles of beer in twelve (12)

HEA 1275 — Concur
                                   19

      ounce bottles.
   SECTION 25. IC 7.1-3-6.5-3 IS REPEALED [EFFECTIVE JULY
1, 2025]. Sec. 3. A permittee who sells a keg of beer for consumption
at a place other than a licensed premises must place an identification
marker on the keg at the time of sale. The commission shall prescribe
the form of the identification marker. The identification marker must:

      (1) enable the identification and tracking of the seller of beer;
      (2) be removable or reusable when the keg is returned to the
      wholesaler for refilling; and
      (3) contain other information that the commission requires.
   SECTION 26. IC 7.1-3-6.5-5 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 5. The commission may
impose a civil penalty under IC 7.1-3-23-3 or suspend the permit of a
permittee who:
      (1) sells a keg of beer for consumption at a place other than a
      licensed premises; and who
      (2) at the time of sale fails to (1) place an identification marker on
      the keg; or (2) obtain a signed receipt from the purchaser.
   SECTION 27. IC 7.1-3-6.5-6 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 6. A person who (1)
possesses a keg of beer without an identification marker required under
this chapter; (2) possesses a keg of beer with an altered identification
marker; or (3) provides false information on a receipt required under
this chapter commits a Class B infraction.
   SECTION 28. IC 7.1-3-7-3, AS AMENDED BY P.L.194-2021,
SECTION 36, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 3. (a) The holder of a distiller's permit shall be
entitled to:
      (1) manufacture liquor;
      (2) rectify liquor;
      (3) bottle liquor; and
      (4) insert liquor into containers.
   (b) A distiller shall enjoy all the privileges accorded the holder of
a rectifier's permit, but the distiller shall not have to obtain a separate
rectifier's permit nor pay an additional fee.
   (c) A distiller shall be entitled to transport liquor and to sell and
deliver it in shipments to points outside this state, or to the holder of a
liquor wholesaler's permit, or to the holder of a rectifier's permit.
   (d) A distiller may not sell liquor produced under a distiller's permit
as issued under section 1 of this chapter to a consumer, nor to a person
for the purpose of having it retailed by the person, whether that person
holds a liquor retailer's permit under this title or not.

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                                   20

   (e) A distiller may transport liquor to and from a brewery located
within the same county for the purposes of carbonating and canning by
the brewery.

   (f) A distiller may sell, donate, transport, and deliver liquor to
a qualified organization for:

      (1) an allowable event under IC 7.1-3-6.1;
      (2) a charity auction under IC 7.1-3-6.2; or
      (3) an event under IC 7.1-3-6.3.
   (f) (g) The activity under this section is not an interest under
IC 7.1-5-9.
   SECTION 29. IC 7.1-3-8-3, AS AMENDED BY P.L.153-2015,
SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: 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.
   (d) A liquor wholesaler may sell, donate, transport, and deliver
liquor to a qualified organization for:
      (1) an allowable event to which under IC 7.1-3-6.1; applies or
      (2) a charity auction to which under IC 7.1-3-6.2; applies. or
      (3) an event under IC 7.1-3-6.3.
The sale, transportation, donation to a qualified organization, 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) (e) A liquor wholesaler's bona fide regular employees may
purchase liquor from the wholesaler in an amount not to exceed
eighteen (18) liters.
   SECTION 30. IC 7.1-3-9-1 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 1. Application. The

HEA 1275 — Concur
                                   21

commission may issue a liquor retailer's permit to a person who:
      (1) is not disqualified under the special disqualifications set
      forth in IC 7.1-3-4-2; and
      (2) desires to sell liquor to customers for consumption on the
      licensed premises.

   SECTION 31. IC 7.1-3-9-9.4 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2025]: Sec. 9.4. A liquor retailer may sell,
donate, transport, and deliver liquor to a qualified organization
for:

      (1) an allowable event under IC 7.1-3-6.1;
      (2) a charity auction under IC 7.1-3-6.2; or
      (3) an event under IC 7.1-3-6.3.
   SECTION 32. IC 7.1-3-10-7.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2025]: Sec. 7.5. A liquor dealer may sell,
donate, transport, and deliver liquor to a qualified organization
for:
      (1) an allowable event under IC 7.1-3-6.1;
      (2) a charity auction under IC 7.1-3-6.2; or
      (3) an event under IC 7.1-3-6.3.
   SECTION 33. IC 7.1-3-12-5, AS AMENDED BY P.L.194-2021,
SECTION 42, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 5. (a) The following apply to the holder of a farm
winery permit:
      (1) A holder is entitled to manufacture wine and to place wine
      produced by the permit holder's farm winery in bottles or other
      permissible containers.
      (2) A holder 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's permit under IC 7.1-3-18-9; and
         (B) completes a server training program approved by the
         commission.
      (3) A holder is entitled to sell the winery's wine on the licensed
      premises to consumers either by:
         (A) the glass;
         (B) the bottle;
         (C) a box that contains a bag designed for storing and
         dispensing wine;

HEA 1275 — Concur
                                   22

         (D) any combination of receptacles listed in clauses (A)
         through (C); or
         (E) any other container permissible under federal law.
      Notwithstanding IC 7.1-1-3-20, the licensed premises may
      include the farm winery parking lot or an area adjacent to the farm
      winery. The parking lot or an adjacent area may only be used for
      the purpose of conveying alcoholic beverages and other
      nonalcoholic items to a customer subject to section 5.5 of this
      chapter, and may not be used for point of sale purposes or any
      other purpose.
      (4) A holder 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) A holder is entitled to sell wine by:
         (A) the bottle;
         (B) the can;
         (C) a box that contains a bag designed for storing and
         dispensing wine;
         (D) bulk container;
         (E) the case; or
         (F) any combination of receptacles listed in clauses (A)
         through (E);
      to a person who is the holder of a permit to sell wine at wholesale.
      (6) A holder is exempt from the provisions of IC 7.1-3-14.
      (7) A holder is entitled to advertise the name and address of any
      retailer or dealer who sells wine produced by the permit holder's
      winery.
      (8) A holder 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) A holder is entitled to purchase and sell bulk wine as set forth
      in this chapter.
      (10) A holder is entitled to sell wine as authorized by this section
      for carryout on Sunday.
      (11) A holder 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.
      (12) A holder is entitled to sell the farm winery's wine to the
      holder of a supplemental caterer's permit issued under
      IC 7.1-3-9.5 for on-premises consumption only at an event that is

HEA 1275 — Concur
                                   23

      held outdoors on property that is contiguous to the farm winery as
      approved by the commission.
      (13) A holder is entitled to be the proprietor of a restaurant that is
      not subject to the minimum gross food sales or the minimum
      projected food sales set forth in 905 IAC 1-41-2 and the gross
      retail income requirements to sell carryout under IC 7.1-3-20-9.5.
      A holder is entitled to conduct the following activities:

         (A) Hold a beer retailer's permit, a wine retailer's permit, or a
         liquor retailer's permit for a restaurant.
         (B) Transfer wine directly from the farm winery to a restaurant
         that the farm winery has an interest in by means of:

            (i) bottles or cans;
            (ii) bulk containers; or
            (iii) a continuous flow system.
         (C) Install a window between the farm winery and an adjacent
         restaurant that allows the public and the holder of the permit
         to view both premises.
         (D) Install a doorway or other opening between the farm
         winery and an adjacent restaurant that provides the public and
         the holder of the permit with access to both the farm winery
         and restaurant.
      (14) A holder that does not distribute through an Indiana wine
      wholesaler is entitled under the farm winery permit to sell and
      deliver to a person holding a wine retailer or wine dealer permit
      under this title a total of not more than three thousand (3,000)
      gallons of the farm winery's wine in a calendar year, if the farm
      winery has not sold in Indiana more than fifteen thousand
      (15,000) gallons the previous calendar year. A holder that sells
      and delivers under this subdivision shall comply with all
      provisions applicable to a wholesaler in 905 IAC 1-5.1, 905
      IAC 1-5.2, 905 IAC 1-21, 905 IAC 1-31, and 905 IAC 1-32.1.
      (15) A holder must annually submit to the commission copies of
      its Indiana and federal excise tax returns.
      (15) A holder may sell, donate, transport, and deliver wine to
      a qualified organization conducting any of the following:
         (A) An allowable event under IC 7.1-3-6.1.
         (B) A charity auction under IC 7.1-3-6.2.
         (C) An event under IC 7.1-3-6.3.
   (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

HEA 1275 — Concur
                                   24

the first location, except for manufacturing wine or placing wine in
bottles or containers.

   (c) A farm winery may transfer wine from a storage facility or an
additional location described in subsection (b). A farm winery may sell
or transfer wine directly to a wine wholesaler from a storage facility
separate from the farm winery or an additional location described in
subsection (b). A farm winery may not sell or transfer wine from a
storage facility to any other permittee or a consumer. The farm winery
shall maintain an adequate written record of wine transferred:

      (1) between the farm winery and the storage facility; and
      (2) from the storage facility to the wholesaler.
   (d) With the approval of the commission, a holder of a permit under
this chapter may:
      (1) individually; or
      (2) with other permit holders under this chapter, holders of artisan
      distiller's permits, holders of brewer's permits issued under
      IC 7.1-3-2-2(b), or any combination of holders described in this
      subdivision;
participate in a trade show or an exposition at which products of each
permit holder participant are displayed, promoted, and sold. All of the
permit holders may occupy the same tent, structure, or building. The
commission may not grant approval under this subsection to a holder
of a permit under this chapter for more than forty-five (45) days in a
calendar year.
   SECTION 34. IC 7.1-3-13-3, AS AMENDED BY P.L.41-2024,
SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 3. (a) The holder of a wine wholesaler's permit
may purchase, import, and transport wine, brandy, mixed beverages, or
flavored malt beverage from the primary source of supply. A wine
wholesaler may export and transport wine, brandy, or flavored malt
beverage by the bottle, barrel, cask, or other container, to points outside
Indiana. A wine wholesaler is entitled to sell, furnish, and deliver wine
or flavored malt beverage from inventory that has been located on the
wholesaler's premises before the time of invoicing and delivery to a
wine wholesaler, a wine retailer, a supplemental caterer, a temporary
wine permittee, and a wine dealer, but not at retail. A wine wholesaler
may sell, furnish, and deliver brandy or mixed beverages from
inventory that has been located on the wholesaler's premises before the
time of invoicing and delivery, but not at retail, only to a person who
holds a liquor retailer's permit, a supplemental caterer's permit, or a
liquor dealer's permit. A holder of a wine wholesaler's permit may sell
wine, mixed beverages, or flavored malt beverages to the wine

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                                   25

wholesaler's bona fide regular employees.
   (b) A wine wholesaler may sell, donate, and deliver wine, mixed

beverages, or flavored malt beverage from inventory that has been
located on the wholesaler's premises before the time of invoicing and
delivery to a qualified organization that is conducting any of the
following:

      (1) An allowable event to which under IC 7.1-3-6.1. applies or
      (2) A charity auction to which under IC 7.1-3-6.2. applies.
      (3) An event under IC 7.1-3-6.3.
   (b) (c) 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) (d) 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) (e) The holder of a wine wholesaler's permit may possess,
transport, sell, and deliver mixed beverages only to a person who holds
one (1) of the following:
      (1) A liquor retailer's permit under IC 7.1-3-9.
      (2) A supplemental caterer's permit under IC 7.1-3-9.5.
      (3) A liquor dealer's permit under IC 7.1-3-10.
      (4) A liquor wholesaler's permit under IC 7.1-3-8.
      (5) A wine wholesaler's permit issued under this chapter.
   SECTION 35. IC 7.1-3-14-3 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 3. Persons Eligible for

HEA 1275 — Concur
                                   26

Permits. The commission may issue a wine retailer's permit only to the
following:

      (a) (1) A person who:
         (A) is not the holder of, nor an applicant for, any other permit;
         and who
         (B) is not disqualified under the special disqualifications set
         forth in IC 7.1-3-4-2; and who operates a restaurant
         patronized by customers who are likely to consume table wine
         with their meals;
         (C) desires to sell wine to customers for consumption on
         the licensed premises.

      (b) (2) A person who is the holder of a beer retailer's permit
      under IC 7.1-3-4. or
      (c) (3) A person who is the holder of a liquor retailer's permit
      under IC 7.1-3-9.
   SECTION 36. IC 7.1-3-14-4.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2025]: Sec. 4.5. A wine retailer may sell,
donate, transport, and deliver wine to a qualified organization for:
      (1) an allowable event under IC 7.1-3-6.1;
      (2) a charity auction under IC 7.1-3-6.2; or
      (3) an event under IC 7.1-3-6.3.
   SECTION 37. IC 7.1-3-15-3 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 3. (a) The holder of a
wine dealer's permit shall be entitled to purchase wine only from a
permittee who is authorized to sell to a wine dealer under this title. A
wine dealer shall be entitled to sell wine for consumption off the
licensed premises only and not by the drink.
   (b) A wine dealer shall be entitled to sell wine in permissible
containers in a quantity of not more than three (3) standard cases, as
determined under the rules of the commission, in a single transaction.
However, a wine dealer who is licensed under IC 7.1-3-10-4 may
possess wine and sell it at retail in its original package to a customer
only for consumption off the licensed premises.
   (c) Unless a wine dealer is a grocery store or drug store, a wine
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 wine 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 person who is outside the licensed
premises.
   (d) However, a wine dealer who is licensed under IC 7.1-3-10-4 may

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                                   27

deliver wine only in permissible containers to a customer's residence,
office, or designated location. 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) The holder of a wine dealer's permit may sell, donate,
transport, and deliver wine to a qualified organization for:

      (1) an allowable event under IC 7.1-3-6.1;
      (2) a charity auction under IC 7.1-3-6.2; or
      (3) an event under IC 7.1-3-6.3.
   SECTION 38. IC 7.1-3-18.5-6, AS AMENDED BY P.L.49-2020,
SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 6. (a) If a certificate has:
      (1) expired; or
      (2) been suspended;
the commission may not reinstate or renew the certificate until all civil
penalties imposed against the certificate holder for violating
IC 35-46-1-10, IC 35-46-1-10.2, IC 35-46-1-11, IC 35-46-1-11.2,
IC 35-46-1-11.4, IC 35-46-1-11.5, IC 35-46-1-11.7, or IC 35-46-1-11.8
have been paid.
   (b) The failure to pay a civil penalty described in subsection (a) is
a Class B infraction.
   (c) If a certificate has been revoked, the commission may not
reinstate or renew the certificate for at least one hundred eighty (180)
days after the date of revocation. The commission may reinstate or
renew the certificate only upon a reasonable showing by the applicant
that the applicant shall:
      (1) exercise due diligence in the sale of tobacco products or
      electronic cigarettes on the applicant's premises where the
      tobacco products or electronic cigarettes are sold or distributed;
      and
      (2) properly supervise and train the applicant's employees or
      agents in the handling and sale of tobacco products or electronic
      cigarettes.
If a certificate is reinstated or renewed, the applicant of the certificate
shall pay an application fee of one thousand dollars ($1,000).
   (d) Notwithstanding IC 34-28-5-5(c), civil penalties collected under
this section must be deposited in the youth Richard D. Doyle tobacco
education and enforcement fund established under IC 7.1-6-2-6.
   SECTION 39. IC 7.1-3-18.5-7, AS AMENDED BY P.L.231-2015,
SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE

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                                   28

JULY 1, 2025]: Sec. 7. (a) A person who is required to have a
certificate under this chapter and who sells or distributes tobacco
products or electronic cigarettes without a valid certificate commits a
Class A infraction. Each violation of this section constitutes a separate
offense.

   (b) Notwithstanding IC 34-28-5-5(c), civil penalties collected under
this section must be deposited in the Richard D. Doyle youth tobacco
education and enforcement fund established under IC 7.1-6-2-6.

   SECTION 40. IC 7.1-3-18.5-11, AS ADDED BY P.L.214-2016,
SECTION 14, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 11. (a) If a certificate holder sells or distributes
tobacco products or electronic cigarettes at a location:

      (1) determined to be a public nuisance; or
      (2) at which conduct or acts that are crimes or infractions under
      IC 35 occur;
the commission may impose sanctions against the certificate holder
under IC 7.1-2-3-33 and section 5 of this chapter.
   (b) If the criminal conduct under subsection (a)(2) at the
location involves the possession or sale of illegal substances or
other contraband under IC 35, the commission may include the
costs of disposing of the illegal substances or contraband in the
sanctions imposed on the certificate holder.
   SECTION 41. IC 7.1-3-21-8, AS AMENDED BY P.L.194-2021,
SECTION 55, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 8. (a) The commission shall not issue an
alcoholic beverage permit of any type to a person unless that person has
on file with the commission a verified list containing the name and
address of each person or entity:
      (1) with actual authority to direct or control the operation of
      the permit; and
      (2) holding at least a two five percent (2%) (5%) interest in the
      permit and the business conducted, or to be conducted, under it.
   (b) If a publicly traded corporation has an interest, the list required
under subsection (a) shall provide the name and address of only the:
      (1) the chief executive officer;
      (2) the chief financial officer;
      (3) the chief operating officer; and
      (4) the members of the board of directors;
of the corporation.
   (c) At all times, a change in the list required under subsection (a)
shall be filed by the applicant or permittee with the commission within
ten (10) days of the date when the change became effective. The lists,

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                                   29

together with any changes, shall be:
      (1) kept on file in the office of the commission; and they shall be
      (2) open to public inspection.

   SECTION 42. IC 7.1-3-23-6 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 6. Revocation of
Permits: Procedure. The commission shall give at least ten (10) three
(3) business days notice to the holder of the permit proposed to be
revoked. The notice shall inform the holder of the time and place of the
hearing to be held in regard to the proposed revocation. Unless
otherwise provided in this title, all further procedures with reference to
the revocation of a permit shall be prescribed by rule and regulation of
the commission.

   SECTION 43. IC 7.1-3-27-8, AS AMENDED BY P.L.194-2021,
SECTION 59, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: 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) Insert liquor manufactured by the artisan distiller into a
      container.
      (4) Store liquor manufactured by the artisan distiller, including at
      a facility located within ten (10) miles of the artisan distiller's
      distillery.
      (5) 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.
      (6) Sell liquor manufactured by the artisan distiller to consumers
      by the drink, bottle, container, or case from the licensed premises
      of the distillery where the liquor was manufactured.
      Notwithstanding IC 7.1-1-3-20, the licensed premises may
      include the distillery parking lot or an area adjacent to the artisan
      distillery. The parking lot or adjacent area may only be used for
      the purpose of conveying alcoholic beverages and other
      nonalcoholic items to a customer subject to section 8.1 of this
      chapter and may not be used for point of sale purposes or any
      other purpose.
      (7) Serve complimentary samples of the liquor manufactured by
      the artisan distiller to consumers on the premises of the distillery
      where the liquor was manufactured.

HEA 1275 — Concur
                                   30

      (8) Sell liquor as authorized by this section for carryout on
      Sunday in a quantity at any one (1) time of not more than four and
      five-tenths (4.5) liters.
      (9) With the approval of the commission, participate:

         (A) individually; or
         (B) with other permit holders under this chapter, holders of
         farm winery permits, holders of brewer's permits issued under
         IC 7.1-3-2-2(b), or any combination of holders described in
         this clause;
      in a trade show or an exposition at which products of each permit
      holder participant are displayed, promoted, and sold. All of the
      permit holders may occupy the same tent, structure, or building.
      The commission may not grant to a holder of a permit under this
      chapter approval under this subdivision to participate in a trade
      show or exposition for more than forty-five (45) days in a
      calendar year.
      (10) Be the proprietor of a restaurant that is not subject to the
      minimum gross food sales or the minimum projected food sales
      set forth in 905 IAC 1-41-2 and the gross retail income
      requirements to sell carryout under IC 7.1-3-20-9.5. A holder is
      entitled to conduct the following activities:
         (A) Hold a beer retailer's permit, a wine retailer's permit, or a
         liquor retailer's permit for a restaurant.
         (B) Transfer liquor directly from the artisan distillery to a
         restaurant that the artisan distiller has an interest in by means
         of:

            (i) bottles;
            (ii) bulk containers; or
            (iii) a continuous flow system.
         (C) Install a window between the artisan distillery and an
         adjacent restaurant that allows the public and the holder of the
         permit to view both premises.
         (D) Install a doorway or other opening between the artisan
         distillery and an adjacent restaurant that provides the public
         and the holder of the permit with access to both the artisan
         distillery and restaurant.
      (11) A holder that does not distribute through an Indiana liquor
      wholesaler is entitled under the artisan distiller's permit to sell and
      deliver to a person holding a liquor retailer or liquor dealer permit
      under this title a total of not more than one thousand (1,000)
      gallons of the artisan distillery's liquor in a calendar year, if the
      artisan distiller has not sold in Indiana more than nine thousand

HEA 1275 — Concur
                                   31

      (9,000) gallons the previous calendar year. A holder that sells and
      delivers under this subdivision shall comply with all provisions
      applicable to a wholesaler in 905 IAC 1-5.1, 905 IAC 1-5.2, 905
      IAC 1-21, 905 IAC 1-31, and 905 IAC 1-32.1.
      (12) A holder must annually submit to the commission copies of
      its Indiana and federal excise tax returns.
      (12) Sell, donate, transport, and deliver liquor manufactured
      by the artisan distiller to a qualified organization for:

         (A) an allowable event under IC 7.1-3-6.1;
         (B) a charity auction under IC 7.1-3-6.2; or
         (C) an event under IC 7.1-3-6.3.
   (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.
   (c) A storage facility used by an artisan distiller under subsection
(a)(4) must conform with federal laws, rules, and regulations. An
artisan distiller may transfer liquor from a separate storage facility back
to the artisan distillery. An artisan distiller may sell or transfer liquor
directly to a liquor wholesaler from a storage facility that is separate
from the artisan distillery. An artisan distiller may not sell or transfer
liquor from a storage facility to any other permittee or a consumer. The
artisan distiller shall maintain an adequate written record of the liquor
transferred:
      (1) between the artisan distillery and the storage facility; and
      (2) from the storage facility to the liquor wholesaler.
   (d) The holder of an artisan distiller's permit may transport liquor to
and from a brewery located within the same county for the purposes of
carbonating and canning by the brewery. The activity under this
subsection is not an interest under IC 7.1-5-9.
   (e) An artisan distiller who knowingly or intentionally violates this
section commits a Class B misdemeanor.
   SECTION 44. IC 7.1-5-5-10, AS AMENDED BY P.L.86-2018,
SECTION 138, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2025]: Sec. 10. (a) Except as provided in
subsection subsections (b) and (c), it is unlawful for a person who
holds a retailer's or dealer's permit of any type to receive or accept a
gift from a manufacturer of alcoholic beverages or from a permittee
authorized to sell and deliver alcoholic beverages.
   (b) A person who holds a retailer's or dealer's permit may receive or
accept entertainment and professional and educational expenses from
a manufacturer of alcoholic beverages or from a permittee authorized
to sell and deliver alcoholic beverages, unless the entertainment or

HEA 1275 — Concur
                                   32

professional and educational expenses are provided in exchange for an
agreement by the holder of the retailer's or dealer's permit to directly or
indirectly purchase alcoholic beverages from a:

      (1) manufacturer; or
      (2) permittee authorized to sell and deliver alcoholic beverages;
to the exclusion, in whole or in part, of alcoholic beverages sold or
delivered by another manufacturer or a permittee authorized to sell and
deliver alcoholic beverages.
   (c) As used in this subsection, "permittee" means a person listed
in IC 7.1-3-6.1-5(1). A qualified organization that holds a retailer's
or dealer's permit may receive or accept donations of alcoholic
beverages from a permittee for any event conducted by the
qualified organization in compliance with:
      (1) IC 7.1-3-6.1;
      (2) IC 7.1-3-6.2; or
      (3) IC 7.1-3-6.3.
   (c) (d) A person who knowingly or intentionally violates this section
commits a Class A misdemeanor.
   SECTION 45. IC 7.1-5-5-11, AS AMENDED BY P.L.270-2017,
SECTION 18, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 11. (a) Except as provided in subsections (c), (d),
and (e), and (f), it is unlawful for a manufacturer of alcoholic
beverages or a permittee authorized to sell and deliver alcoholic
beverages to:
      (1) give to another permittee who purchases alcoholic beverages
      from the manufacturer or permittee a gift; or
      (2) except as provided in IC 7.1-3-2-9 and IC 7.1-3-3-5(f), have
      a business dealing with the other permittee.
   (b) This section does not apply to the sale and delivery and
collection of the sale price of an alcoholic beverage in the ordinary
course of business.
   (c) If the promotional program is approved under the rules adopted
by the commission and is conducted in all wholesaler establishments
through which the manufacturer distributes alcoholic beverages in
Indiana, a manufacturer of alcoholic beverages may award bona fide
promotional prizes and awards to any of the following:
      (1) A person with a wholesaler's permit issued under IC 7.1-3.
      (2) An employee of a person with a wholesaler's permit issued
      under IC 7.1-3.
   (d) A manufacturer may offer on a nondiscriminatory basis bona
fide incentives to wholesalers when the incentives are determined
based on sales to retailers or dealers occurring during specified times

HEA 1275 — Concur
                                   33

for specified products. The incentive may be conditioned on the
wholesaler selling a:

      (1) specified product at a specified price or less than a specified
      price; or
      (2) minimum quantity of a specified product to a single customer
      in a single transaction.
The incentive may not be conditioned on a wholesaler having total
sales of a minimum quantity of a specified product during the
applicable period.
   (e) A manufacturer or a permittee authorized to sell and deliver
alcoholic beverages may provide entertainment and professional and
educational expenses to another permittee, unless the entertainment or
professional and educational expenses are provided in exchange for an
agreement to directly or indirectly purchase alcoholic beverages from
a:
      (1) manufacturer; or
      (2) permittee authorized to sell and deliver alcoholic beverages;
to the exclusion, in whole or in part, of alcoholic beverages sold or
delivered by another manufacturer or a permittee authorized to sell and
deliver alcoholic beverages.
   (f) As used in this subsection, "permittee" means a person listed
in IC 7.1-3-6.1-5(1). A qualified organization that is a permittee
may receive or accept donations of alcoholic beverages from a
permittee for any event conducted by the qualified organization in
compliance with:
      (1) IC 7.1-3-6.1;
      (2) IC 7.1-3-6.2; or
      (3) IC 7.1-3-6.3.
   (f) (g) A person who knowingly or intentionally violates this section
commits a Class A misdemeanor.
   SECTION 46. IC 7.1-5-7-3 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 3. (a) It is a Class C
infraction for a minor to have in his the minor's possession false or
fraudulent evidence of majority or identity with the intent to violate a
provision of this title.
   (b) It is a Class C infraction for a minor to have in the minor's
possession false or fraudulent evidence of majority or identity with
the intent to purchase a tobacco product as provided in
IC 35-46-1-10.5.
   SECTION 47. IC 7.1-5-7-11, AS AMENDED BY P.L.170-2023,
SECTION 20, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 11. (a) The provisions of sections 9 and 10 of this

HEA 1275 — Concur
                                   34

chapter shall not apply if the public place involved is one (1) of the
following:

      (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 4-31-2.1-36).
      (15) Catering hall under IC 7.1-3-20-24 that is not open to the
      public.
      (16) That part of a 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 senior residence facility campus (as defined in
      IC 7.1-3-1-29(c)) at which alcoholic beverages are given or
      furnished as provided under IC 7.1-3-1-29.
      (24) A hotel other than a part of a hotel that is a room in a
      restaurant in which a bar is located over which alcoholic
      beverages are sold or dispensed by the drink.
      (25) The location of an allowable event to which IC 7.1-3-6.1
      applies.
      (26) The location of a charity auction to which IC 7.1-3-6.2
      applies.

HEA 1275 — Concur
                                   35

      (27) A tour of a brewery as provided in IC 7.1-3-20-16.4, if the
      minor is in the company of a parent, legal guardian or custodian,
      or family member who is at least twenty-one (21) years of age.
      (28) A farm winery and any additional locations of the farm
      winery under IC 7.1-3-12, if the minor is in the company of a
      parent, legal guardian or custodian, or family member who is at
      least twenty-one (21) years of age and the minor is accompanied
      by the adult in any area that the adult may be present whether or
      not the area:

         (A) is separated in any manner from where the wine is
         manufactured, sold, or consumed within the farm winery
         premises; or
         (B) operates under a retailer's permit.
      (29) An artisan distillery under IC 7.1-3-27, if:
         (A) the person who holds the artisan distiller's permit also
         holds a farm winery permit under IC 7.1-3-12, or
         IC 7.1-3-20-16.4(a) applies to the person; and
         (B) the minor is in the company of a parent, legal guardian or
         custodian, or family member who is at least twenty-one (21)
         years of age.
      (30) An art instruction studio under IC 7.1-5-8-4.6.
      (31) The licensed premises of a food hall under IC 7.1-3-20-29
      and the food and beverage vending space of a food hall vendor
      permittee under IC 7.1-3-20-30. However, sections 9 and 10 of
      this chapter apply to a bar within the food and beverage vending
      space of a food hall vendor permittee under IC 7.1-3-20-30 that
      serves alcoholic beverages intended to be consumed while sitting
      or standing at the bar.
      (32) A refreshment area designated under IC 7.1-3-31.
      (33) A small brewery under IC 7.1-3-2-7(5) and a restaurant
      of which the small brewery permit holder is the proprietor as
      provided in IC 7.1-3-2-7(5)(B), if the minor is accompanied by
      a parent, legal guardian, custodian, or family member who is
      at least twenty-one (21) years of age. The minor may be in any
      area in which the accompanying adult may be present,
      whether or not the area:
         (A) is separated in any manner from where the beer is
         manufactured, sold, or consumed within the small brewery
         premises; or
         (B) operates under a retailer's permit as provided in
         IC 7.1-3-2-7(5)(C).
   (b) For the purpose of this subsection, "food" means meals prepared

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                                   36

on the licensed premises. It is lawful for a minor to be on licensed
premises in a room, outdoor patio, or terrace 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 in the company of a parent, guardian, or family
      member who is at least twenty-one (21) years of age. or older.
      (2) The purpose for being on the licensed premises is the
      consumption of food and not the consumption of alcoholic
      beverages.
      (3) The minor, accompanied by the parent, guardian, or family
      member who is at least twenty-one (21) years of age, or older,
      must be seated at a table or booth in the bar area and shall not be
      seated at the bar over which alcoholic beverages are sold or
      dispensed by the drink.
   SECTION 48. IC 7.1-5-8-4, AS AMENDED BY P.L.121-2022,
SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 4. (a) It is a Class B misdemeanor for a person
who owns or operates a private or public restaurant or place of public
or private entertainment to knowingly or intentionally permit another
person to come into the establishment with an alcoholic beverage for
sale or gift, or for consumption in the establishment by that person or
another, or to serve a setup to a person who comes into the
establishment. However, the provisions of this section do not apply to
the following:
      (1) A private room hired by a guest of a bona fide club or hotel
      that holds a retail permit.
      (2) A facility that is used in connection with the operation of a
      paved track that is used primarily in the sport of auto racing.
      (3) An outdoor place of public entertainment that:

         (A) has an area of at least four (4) acres and not more than six
         (6) acres;
         (B) is located within one (1) mile of the White River;
         (C) is owned and operated by a nonprofit corporation exempt
         from federal income taxation under Section 501(c)(3) of the
         Internal Revenue Code; and
         (D) is used primarily in connection with live music concerts.
      (4) A craft manufacturer (as defined in IC 7.1-3-30-1) at an event
      held on the licensed premises of a host permittee (as defined in
      IC 7.1-3-30-1) under a temporary craft manufacturer hospitality
      permit issued under IC 7.1-3-30.
   (b) An establishment operated in violation of this section is declared
to be a public nuisance and subject to abatement as other public

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                                   37

nuisances are abated under the provisions of this title.
   (c) This section does not apply to a person who owns or operates a

private or public restaurant or place of public or private entertainment
where the alcoholic beverages brought into the establishment are
purchased by or donated to a qualified organization that is
conducting an event (1) an allowable event to which IC 7.1-3-6.1
applies, and the alcoholic beverage brought into the establishment is:
(A) in sealed bottles or cases; and (B) donated to or purchased by the
qualified organization to be offered as a prize in the allowable event;
or (2) a charity auction to which IC 7.1-3-6.2 applies, and the alcoholic
beverage brought into the establishment is: (A) in sealed bottles or
cases; and (B) donated to or purchased by the qualified organization to
be offered for sale in the charity auction. in compliance with:

      (1) IC 7.1-3-6.1;
      (2) IC 7.1-3-6.2; or
      (3) IC 7.1-3-6.3.
   (d) This section does not apply to an art instruction studio under
section 4.6 of this chapter.
   SECTION 49. IC 7.1-5-8-6, AS AMENDED BY P.L.167-2023,
SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 6. (a) It is a Class C misdemeanor for a person to
knowingly carry liquor into a restaurant or place of public
entertainment for the purpose of consuming it, displaying it, or selling,
furnishing, or giving it away to another person on the premises, or for
the purpose of having it served to himself or another person, then and
there. It is a Class C misdemeanor to knowingly consume liquor
brought into a public establishment in violation of this section.
   (b) This section does not apply to a person at an outdoor place of
public entertainment that:
      (1) has an area of at least four (4) acres and not more than six (6)
      acres;
      (2) is located within one (1) mile of the White River;
      (3) is owned and operated by a nonprofit corporation exempt from
      federal income taxation under Section 501(c)(3) of the Internal
      Revenue Code; and
      (4) is used primarily in connection with live music concerts.
   (c) This section does not apply to a person who carries liquor into
a restaurant or place of public entertainment where the alcoholic
beverages brought into the establishment are purchased by or
donated to a qualified organization that is conducting an event (1) an
allowable event to which IC 7.1-3-6.1 applies, and the liquor brought
into the establishment is: (A) in sealed bottles or cases; and (B)

HEA 1275 — Concur
                                   38

donated to or purchased by the qualified organization to be offered as
a prize in the allowable event; or (2) a charity auction to which
IC 7.1-3-6.2 applies, and the liquor brought into the establishment is:
(A) in sealed bottles or cases; and (B) donated to or purchased by the
qualified organization to be offered for sale in the charity auction. in
compliance with:

      (1) IC 7.1-3-6.1;
      (2) IC 7.1-3-6.2; or
      (3) IC 7.1-3-6.3.
   (d) This section does not apply to a craft manufacturer (as defined
in IC 7.1-3-30-1) at an event held on the licensed premises of a host
permittee (as defined in IC 7.1-3-30-1) under a temporary craft
manufacturer hospitality permit issued under IC 7.1-3-30.
   (e) This section does not apply to a person who brings an alcoholic
beverage:
      (1) purchased from:

         (A) a vendor (as defined in IC 7.1-3-31-5); or
         (B) a designated permittee (as defined in IC 7.1-3-31-2); and
      (2) into a licensed premises:
         (A) of a permittee who may or may not be a designated
         permittee (as defined in IC 7.1-3-31-2); and
         (B) that is located within a refreshment area designated under
         IC 7.1-3-31.
   SECTION 50. IC 7.1-5-8-14 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2025]: Sec. 14. If a person issued a permit or certificate by the
commission under this title sells, distributes, or uses nitrous oxide
or flavored nitrous oxide in violation of IC 35-46-6-3, the
commission may suspend or revoke the permit or certificate and
impose sanctions on the holder equal to the cost of disposing of the
nitrous oxide or flavored nitrous oxide.
   SECTION 51. IC 7.1-5-9-14, AS AMENDED BY P.L.159-2014,
SECTION 66, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 14. (a) It is unlawful for the holder of a brewer's,
distiller's, rectifier's, or a wholesaler's permit of any type to sell an
alcoholic beverage to a person who does not hold an appropriate permit
under this title, unless the sale is the sale of an alcoholic beverage to a
consumer or employee as expressly authorized in this title.
   (b) A person who knowingly or intentionally violates this section
commits a Class B misdemeanor.
   SECTION 52. IC 7.1-5-10-20, AS AMENDED BY P.L.167-2024,
SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE

HEA 1275 — Concur
                                   39

JULY 1, 2025]: Sec. 20. (a) It is unlawful for a holder of a retailer's
permit to do any of the following:

      (1) Furnish two (2) or more servings of an alcoholic beverage
      upon the placing of an order for one (1) serving to one (1) person
      for that person's personal consumption.
      (2) Charge a single price for the required purchase of two (2) or
      more servings of an alcoholic beverage.
      (3) Except as expressly authorized under IC 7.1-3-6.1 or
      IC 7.1-3-6.2, conduct, sponsor, or participate in or allow a person
      on the licensed premises to conduct, sponsor, or participate in any
      game or contest on the licensed premises that:

         (A) is determined by the quantity of alcoholic beverages
         consumed by an individual or individuals; or
         (B) awards alcoholic beverages or reduced price alcoholic
         beverages as prizes for the game or contest.
      (4) Sell or serve an unlimited or indefinite amount of alcoholic
      beverages for a fixed price or charge individual patrons an
      entry or cover fee to allow access to unlimited quantities of
      alcoholic beverages. Nothing in this subdivision prevents a
      retail permit holder from offering event packages in which the
      permit holder sells and invoices an open ended quantity of
      alcoholic beverages at an established price to the individuals
      responsible for the event.
   (b) Subsection (a) applies to private clubs but does not apply to
private functions that are not open to the public.
   (c) A person who knowingly or intentionally violates this section
commits a Class B misdemeanor.
   SECTION 53. IC 7.1-5-11-16 IS REPEALED [EFFECTIVE JULY
1, 2025]. Sec. 16. It is a Class C misdemeanor for a person to
knowingly or intentionally deliver or transport an alcoholic beverage
to the holder of a retailer's or dealer's permit of any type, except a
temporary beer or wine permit, on Sunday.
   SECTION 54. IC 7.1-6-2-6, AS AMENDED BY P.L.56-2023,
SECTION 47, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 6. (a) The Richard D. Doyle youth tobacco
education and enforcement fund is established. The fund shall be
administered by the commission.
   (b) Expenses of administering the fund shall be paid from money in
the fund.
   (c) The treasurer of state shall invest the money in the fund not
currently needed to meet the obligations of the fund in the same
manner as other public money may be invested.

HEA 1275 — Concur
                                   40

   (d) Money in the fund at the end of a state fiscal year does not revert
to the state general fund.

   (e) Money in the fund shall be used for the following purposes:
      (1) For youth smoking prevention education. The commission
      may contract with the Indiana department of health or the office
      of the secretary of family and social services for youth smoking
      prevention education programs.
      (2) For education and training of retailers who sell tobacco
      products. The commission may contract with education and
      training programs of the office of the secretary of family and
      social services, the division of mental health and addiction,
      enforcement officers, or a program approved by the commission.
      (3) For the commission, for enforcement of youth tobacco laws.

   SECTION 55. IC 7.1-6-2-8 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 8. (a) This section
applies whenever a civil penalty payable to the Richard D. Doyle youth
tobacco education and enforcement fund is imposed.

   (b) The person liable for the civil penalty shall pay the full amount
of the civil penalty to the commission within thirty (30) days after final
judgment.

   (c) A person who fails to pay a civil penalty within the time
specified in subsection (b) is liable for a late penalty equal to the
greater of the following:

      (1) Twenty-five percent (25%) of the amount of the civil penalty
      imposed under IC 35-46-1.
      (2) The lesser of the following:

         (A) Twenty-five dollars ($25) multiplied by the number of
         days that have elapsed after the date that the civil penalty was
         imposed by a court.
         (B) Five thousand dollars ($5,000).
   (d) A person who fails to pay a civil penalty within the time
specified in subsection (b) is liable for interest on the unpaid amount
of the:
      (1) civil penalty imposed by a court; and
      (2) late penalty imposed under this section.
The interest rate is the adjusted rate of interest as determined under
IC 6-8.1-10-1 payable from the date that payment of the amount was
due.
   (e) A person who fails to pay a civil penalty within the time
specified in subsection (b) is liable for the reasonable documented
out-of-pocket expenses incurred in pursuing collection efforts.
   (f) The commission shall collect the following:

HEA 1275 — Concur
                                   41

      (1) Civil penalties imposed by a court.
      (2) Late penalties imposed under this section.
      (3) Interest imposed under this section.
      (4) Reasonable documented out-of-pocket expenses incurred in
      pursuing collection efforts.
   (g) Late penalties and interest imposed under this section shall be
deposited in the Richard D. Doyle youth tobacco education and
enforcement fund established by section 6 of this chapter.
   SECTION 56. IC 7.1-7-2-17.7 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2025]: Sec. 17.7. "Nicotine analogue" has the
meaning set forth in IC 7.1-7-5-5.
   SECTION 57. IC 7.1-7-5-5 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2025]: Sec. 5. (a) As used in this section, "nicotine analogue"
means a substance that:
      (1) has a chemical structure substantially similar to the
      chemical structure of nicotine and produces; or
      (2) has, purports to have, or is represented to have;
an effect on the central nervous system that is similar to or greater
than the effect that nicotine has on the central nervous system.
   (b) A person may not sell or offer for sale a product that
contains a nicotine analogue.
   (c) In determining whether a product contains a nicotine
analogue, the trier of fact may consider the following factors:
      (1) Marketing of the product.
      (2) Advertising and labeling.
      (3) Whether the substance or product has been manufactured,
      formulated, sold, distributed, or marketed with the intent to
      avoid laws regulating the sale of products containing nicotine.
      (4) Any other relevant factor.
   (d) A person who knowingly or intentionally violates this section
commits a Class C misdemeanor.
   SECTION 58. IC 24-3-5-5, AS AMENDED BY P.L.111-2021,
SECTION 96, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 5. (a) A merchant who mails or ships cigarettes as
part of a delivery sale shall:
      (1) use a mailing or shipping service that requires the customer or
      a person at least twenty-one (21) years of age who is designated
      by the customer to:

         (A) sign to accept delivery of the cigarettes; and
         (B) present a valid driver's license issued under IC 9-24-3 or

HEA 1275 — Concur
                                   42

         an identification card issued under IC 9-24-16 if the customer
         or the customer's designee, in the opinion of the delivery agent
         or employee of the mailing or shipping service, appears to be
         less than thirty (30) years of age;
      (2) provide to the mailing or shipping service used under
      subdivision (1) proof of compliance with section 6(a) of this
      chapter; and
      (3) include the following statement in bold type or capital letters
      on an invoice or shipping document:
         INDIANA LAW PROHIBITS THE MAILING OR SHIPPING
         OF CIGARETTES TO A PERSON LESS THAN
         TWENTY-ONE (21) YEARS OF AGE AND REQUIRES
         PAYMENT OF ALL APPLICABLE TAXES.
   (b) The commission may impose a civil penalty of not more than
one thousand dollars ($1,000) if a mailing or shipping service:
      (1) delivers cigarettes as part of a delivery sale without first
      receiving proof from the merchant of compliance with section
      6(a) of this chapter; or
      (2) fails to obtain a signature and proof of identification of the
      customer or the customer's designee under subsection (a)(1).
The commission shall deposit amounts collected under this subsection
into the Richard D. Doyle youth tobacco education and enforcement
fund established by IC 7.1-6-2-6.
   (c) The following apply to a merchant that mails or ships cigarettes
as part of a delivery sale without using a third party service as required
by subsection (a)(1):
      (1) The merchant shall require the customer or a person at least
      twenty-one (21) years of age who is designated by the customer
      to:
         (A) sign to accept delivery of the cigarettes; and
         (B) present a valid driver's license issued under IC 9-24-3 or
         identification card issued under IC 9-24-16 if the customer or
         the customer's designee, in the opinion of the merchant or the
         merchant's employee making the delivery, appears to be less
         than thirty (30) years of age.
      (2) The commission may impose a civil penalty of not more than
      one thousand dollars ($1,000) if the merchant:
         (A) delivers the cigarettes without first complying with section
         6(a) of this chapter; or
         (B) fails to obtain a signature and proof of identification of the
         customer or the customer's designee under subdivision (1).
      The commission shall deposit amounts collected under this

HEA 1275 — Concur
                                   43

      subdivision into the Richard D. Doyle youth tobacco education
      and enforcement fund established by IC 7.1-6-2-6.
   SECTION 59. IC 24-3-5-8, AS AMENDED BY P.L.49-2020,
SECTION 24, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 8. The commission may impose a civil penalty of
not more one thousand dollars ($1,000) on a:
      (1) customer who signs another person's name to a statement
      required under section 4(1) of this chapter; or
      (2) merchant who sells cigarettes by delivery sale to a person less
      than twenty-one (21) years of age.
The commission shall deposit amounts collected under this section into
the Richard D. Doyle youth tobacco education and enforcement fund
established by IC 7.1-6-2-6.
   SECTION 60. IC 35-46-1-1.7, AS AMENDED BY P.L.10-2011,
SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 1.7. As used in this chapter, "tobacco" includes:
means an item that contains tobacco, including:
      (1) chewing tobacco;
      (2) cigars, cigarettes, and snuff that contain tobacco;
      (3) pipe tobacco; and
      (4) a dissolvable tobacco product.
   SECTION 61. IC 35-46-1-1.8 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2025]: Sec. 1.8. As used in this chapter,
"tobacco product" has the meaning set forth in IC 7.1-1-3-47.5(b).
   SECTION 62. IC 35-46-1-10, AS AMENDED BY P.L.32-2021,
SECTION 97, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 10. (a) A person may not be charged with a
violation under this section and a violation under IC 7.1-7-6-5.
   (b) A person who knowingly:
      (1) sells or distributes tobacco, an e-liquid, or an electronic
      cigarette a tobacco product to a person less than twenty-one (21)
      years of age; or
      (2) purchases tobacco, an e-liquid, or an electronic cigarette a
      tobacco product for delivery to another person who is less than
      twenty-one (21) years of age;
commits a Class C infraction. For a sale to take place under this
section, the buyer must pay the seller for the tobacco, e-liquid, or
electronic cigarette. tobacco product.
   (c) It is not a defense that the person to whom the tobacco, e-liquid,
or electronic cigarette tobacco product was sold or distributed did not
smoke, chew, inhale, or otherwise consume the tobacco, e-liquid, or

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                                   44

electronic cigarette. tobacco product.
   (d) The following defenses are available to a person accused of

selling or distributing tobacco, an e-liquid, or an electronic cigarette a
tobacco product to a person who is less than twenty-one (21) years of
age:

      (1) The buyer or recipient produced a driver's license bearing the
      purchaser's or recipient's photograph, showing that the purchaser
      or recipient was of legal age to make the purchase.
      (2) The buyer or recipient produced a photographic identification
      card issued under IC 9-24-16-1, or a similar card issued under the
      laws of another state or the federal government, showing that the
      purchaser or recipient was of legal age to make the purchase.
      (3) The appearance of the purchaser or recipient was such that an
      ordinary prudent person would believe that the purchaser or
      recipient was not less than thirty (30) years of age.
   (e) It is a defense that the accused person sold or delivered the
tobacco, e-liquid, or electronic cigarette tobacco product to a person
who acted in the ordinary course of employment or a business
concerning tobacco, an e-liquid, or electronic cigarettes tobacco
products including the following activities:
      (1) Agriculture.
      (2) Processing.
      (3) Transporting.
      (4) Wholesaling.
      (5) Retailing.
   (f) As used in this section, "distribute" means to give tobacco, an
e-liquid, or an electronic cigarette a tobacco product to another person
as a means of promoting, advertising, or marketing the tobacco,
e-liquid, or electronic cigarette tobacco product to the general public.
   (g) Unless the person buys or receives tobacco, an e-liquid, or an
electronic cigarette a tobacco product under the direction of a law
enforcement officer as part of an enforcement action, a person who
sells or distributes tobacco, an e-liquid, or an electronic cigarette a
tobacco product is not liable for a violation of this section unless the
person less than twenty-one (21) years of age who bought or received
the tobacco, e-liquid, or electronic cigarette tobacco product is issued
a citation or summons under section 10.5 of this chapter.
   (h) Notwithstanding IC 34-28-5-5(c), civil penalties collected under
this section must be deposited in the Richard D. Doyle youth tobacco
education and enforcement fund (IC 7.1-6-2-6).
   SECTION 63. IC 35-46-1-10.2, AS AMENDED BY P.L.32-2021,
SECTION 98, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE

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                                   45

JULY 1, 2025]: Sec. 10.2. (a) A person may not be charged with a
violation under this section and a violation under IC 7.1-7-6-5.

   (b) A retail establishment that sells or distributes tobacco, an
e-liquid, or an electronic cigarette a tobacco product to a person less
than twenty-one (21) years of age commits a Class C infraction. For a
sale to take place under this section, the buyer must pay the retail
establishment for the tobacco, e-liquid, or electronic cigarette. tobacco
product.

   (c) Notwithstanding IC 34-28-5-4(c), a civil judgment for an
infraction committed under this section must be imposed as follows:

      (1) If the retail establishment at that specific business location has
      not been issued a citation or summons for a violation of this
      section in the previous one (1) year, a civil penalty of up to four
      hundred dollars ($400).
      (2) If the retail establishment at that specific business location has
      had one (1) citation or summons issued for a violation of this
      section in the previous one (1) year, a civil penalty of up to eight
      hundred dollars ($800).
      (3) If the retail establishment at that specific business location has
      had two (2) citations or summonses issued for a violation of this
      section in the previous one (1) year, a civil penalty of up to one
      thousand four hundred dollars ($1,400).
      (4) If the retail establishment at that specific business location has
      had three (3) or more citations or summonses issued for a
      violation of this section in the previous one (1) year, a civil
      penalty of up to two thousand dollars ($2,000).
A retail establishment may not be issued a citation or summons for a
violation of this section more than once every twenty-four (24) hours
for each specific business location.
   (d) It is not a defense that the person to whom the tobacco, e-liquid,
or electronic cigarette tobacco product was sold or distributed did not
smoke, chew, inhale, or otherwise consume the tobacco, e-liquid, or
electronic cigarette. tobacco product.
   (e) The following defenses are available to a retail establishment
accused of selling or distributing tobacco, an e-liquid, or an electronic
cigarette a tobacco product to a person who is less than twenty-one
(21) years of age:
      (1) The buyer or recipient produced a driver's license bearing the
      purchaser's or recipient's photograph showing that the purchaser
      or recipient was of legal age to make the purchase.
      (2) The buyer or recipient produced a photographic identification
      card issued under IC 9-24-16-1 or a similar card issued under the

HEA 1275 — Concur
                                   46

      laws of another state or the federal government showing that the
      purchaser or recipient was of legal age to make the purchase.
      (3) The appearance of the purchaser or recipient was such that an
      ordinary prudent person would believe that the purchaser or
      recipient was not less than thirty (30) years of age.
   (f) It is a defense that the accused retail establishment sold or
delivered the tobacco, e-liquid, or electronic cigarette tobacco product
to a person who acted in the ordinary course of employment or a
business concerning tobacco, an e-liquid, or electronic cigarettes
tobacco products for the following activities:
      (1) Agriculture.
      (2) Processing.
      (3) Transporting.
      (4) Wholesaling.
      (5) Retailing.
   (g) As used in this section, "distribute" means to give tobacco, an
e-liquid, or an electronic cigarette a tobacco product to another person
as a means of promoting, advertising, or marketing the tobacco or
electronic cigarette tobacco product to the general public.
   (h) Unless a person buys or receives tobacco, an e-liquid, or an
electronic cigarette a tobacco product under the direction of a law
enforcement officer as part of an enforcement action, a retail
establishment that sells or distributes tobacco, an e-liquid, or an
electronic cigarette a tobacco product is not liable for a violation of
this section unless the person less than twenty-one (21) years of age
who bought or received the tobacco, e-liquid, or electronic cigarette
tobacco product is issued a citation or summons under section 10.5 of
this chapter.
   (i) Notwithstanding IC 34-28-5-5(c), civil penalties collected under
this section must be deposited in the Richard D. Doyle youth tobacco
education and enforcement fund (IC 7.1-6-2-6).
   (j) A person who violates subsection (b) at least six (6) times in any
one (1) year commits habitual illegal sale of tobacco, a Class B
infraction.
   SECTION 64. IC 35-46-1-10.5, AS AMENDED BY P.L.49-2020,
SECTION 32, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 10.5. (a) A person less than twenty-one (21) years
of age who:
      (1) purchases tobacco, an e-liquid, or an electronic cigarette; a
      tobacco product;
      (2) accepts tobacco, an e-liquid, or an electronic cigarette a
      tobacco product for personal use; or

HEA 1275 — Concur
                                   47

      (3) possesses tobacco, an e-liquid, or an electronic cigarette a
      tobacco product on the person's person;
commits a Class C infraction.
   (b) It is a defense under subsection (a) that the accused person acted
in the ordinary course of employment in a business concerning tobacco,
an e-liquid, or an electronic cigarette a tobacco product for the
following activities:
      (1) Agriculture.
      (2) Processing.
      (3) Transporting.
      (4) Wholesaling.
      (5) Retailing.
   (c) A person less than twenty-one (21) years of age who has in
the person's possession false or fraudulent evidence of majority or
identity with the intent to purchase a tobacco product commits a
Class C infraction.
   SECTION 65. IC 35-46-1-11.5, AS AMENDED BY P.L.49-2020,
SECTION 36, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 11.5. (a) Except for a coin machine that is placed
in or directly adjacent to an entranceway or an exit, or placed in a
hallway, a restroom, or another common area that is accessible to
persons who are less than twenty-one (21) years of age, this section
does not apply to a coin machine that is located in the following:
      (1) That part of a licensed premises (as defined in IC 7.1-1-3-20)
      where entry is limited to persons who are at least twenty-one (21)
      years of age.
      (2) Private industrial or office locations that are customarily
      accessible only to persons who are at least twenty-one (21) years
      of age.
      (3) Private clubs if the membership is limited to persons who are
      at least twenty-one (21) years of age.
      (4) Riverboats where entry is limited to persons who are at least
      twenty-one (21) years of age and on which lawful gambling is
      authorized.
   (b) As used in this section, "coin machine" has the meaning set forth
in IC 35-43-5-1.
   (c) Except as provided in subsection (a), an owner of a retail
establishment may not:
      (1) distribute or sell tobacco or electronic cigarettes tobacco
      products by use of a coin machine; or
      (2) install or maintain a coin machine that is intended to be used
      for the sale or distribution of tobacco or electronic cigarettes.

HEA 1275 — Concur
                                   48

      tobacco products.
   (d) An owner of a retail establishment who violates this section
commits a Class C infraction. A citation or summons issued under this
section must provide notice that the coin machine must be moved
within two (2) business days. Notwithstanding IC 34-28-5-4(c), a civil
judgment for an infraction committed under this section must be
imposed as follows:

      (1) If the owner of the retail establishment has not been issued a
      citation or summons for a violation of this section in the previous
      ninety (90) days, a civil penalty of fifty dollars ($50).
      (2) If the owner of the retail establishment has had one (1) citation
      or summons issued for a violation of this section in the previous
      ninety (90) days, a civil penalty of two hundred fifty dollars
      ($250).
      (3) If the owner of the retail establishment has had two (2)
      citations or summonses issued for a violation of this section in the
      previous ninety (90) days for the same machine, the coin machine
      shall be removed or impounded by a law enforcement officer
      having jurisdiction where the violation occurs.
An owner of a retail establishment may not be issued a citation or
summons for a violation of this section more than once every two (2)
business days for each business location.
   (e) Notwithstanding IC 34-28-5-5(c), civil penalties collected under
this section must be deposited in the Richard D. Doyle youth tobacco
education and enforcement fund established under IC 7.1-6-2-6.
   SECTION 66. IC 35-46-1-11.7, AS AMENDED BY P.L.56-2023,
SECTION 324, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2025]: Sec. 11.7. (a) A retail establishment in
which tobacco products electronic cigarettes, and e-liquids account for
at least eighty-five percent (85%) of the retail establishment's gross
sales may not allow an individual who is less than twenty-one (21)
years of age to enter the retail establishment.
   (b) An individual who is less than twenty-one (21) years of age may
not enter a retail establishment described in subsection (a).
   (c) A retail establishment described in subsection (a) must
conspicuously post on all entrances to the retail establishment the
following:
      (1) A sign in boldface type that states "NOTICE: It is unlawful for
      a person less than 21 years old to enter this store.".
      (2) A sign printed in letters and numbers at least one-half (1/2)
      inch high that displays a toll free phone number for assistance to
      callers in quitting smoking, as determined by the Indiana

HEA 1275 — Concur
                                   49

      department of health.
   (d) A person who violates this section commits a Class C infraction.
Notwithstanding IC 34-28-5-4(c), a civil judgment for an infraction
committed under this section must be imposed as follows:

      (1) If the person has not been cited for a violation of this section
      in the previous one (1) year, a civil penalty of up to four hundred
      dollars ($400).
      (2) If the person has had one (1) violation in the previous one (1)
      year, a civil penalty of up to eight hundred dollars ($800).
      (3) If the person has had two (2) violations in the previous one (1)
      year, a civil penalty of up to one thousand four hundred dollars
      ($1,400).
      (4) If the person has had three (3) or more violations in the
      previous one (1) year, a civil penalty of up to two thousand dollars
      ($2,000).
A person may not be cited more than once every twenty-four (24)
hours.
   (e) Notwithstanding IC 34-28-5-5(c), civil penalties collected under
this section must be deposited in the Richard D. Doyle youth tobacco
education and enforcement fund established under IC 7.1-6-2-6.
   (f) A person who violates subsection (a) at least six (6) times in any
one (1) year period commits habitual illegal entrance by a minor, a
Class B infraction.
   SECTION 67. IC 35-46-1-11.8, AS AMENDED BY P.L.49-2020,
SECTION 38, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 11.8. (a) As used in this section, "self-service
display" means a display that contains tobacco or electronic cigarettes
tobacco products in an area where a customer:
      (1) is permitted; and
      (2) has access to the tobacco or electronic cigarettes tobacco
      products without assistance from a sales person.
   (b) This section does not apply to a self-service display located in
a retail establishment:
      (1) in which tobacco products electronic cigarettes, and e-liquids
      account for at least eighty-five percent (85%) of the retail
      establishment's gross sales; and
      (2) that prohibits entry by persons who are less than twenty-one
      (21) years of age.
   (c) The owner of a retail establishment that sells or distributes
tobacco or electronic cigarettes tobacco products through a
self-service display, other than a coin operated machine operated under
IC 35-46-1-11 or IC 35-46-1-11.5, commits a Class C infraction.

HEA 1275 — Concur
                                   50

   (d) Notwithstanding IC 34-28-5-5(c), civil penalties collected under
this section must be deposited in the Richard D. Doyle youth tobacco
education and enforcement fund (IC 7.1-6-2-6).

   SECTION 68. IC 35-46-6-3 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 3. (a) A person who
knowingly or intentionally uses or distributes nitrous oxide with intent
to cause a condition of intoxication, euphoria, excitement, exhilaration,
stupefaction, or dulling of the senses of another person, unless the
nitrous oxide is to be used for medical purposes, commits a Class B
misdemeanor. However, the offense is a Class A misdemeanor if the
person has a prior unrelated conviction under this section.

   (b) Except as provided in subsection (c), a person who
knowingly or intentionally sells, uses, or distributes flavored
nitrous oxide commits a Class B misdemeanor. However, the
offense is a Class A misdemeanor if the person has a prior
unrelated conviction under this section.

   (c) The prohibition on the sale of flavored nitrous oxide in
subsection (b) does not apply to:

      (1) a retail or wholesale restaurant supply company that sells
      or distributes flavored nitrous oxide to a person for use in
      food and beverage preparation or other culinary purposes; or
      (2) a person that uses flavored nitrous oxide in food and
      beverage recipes or for other legitimate culinary purposes.
   SECTION 69. IC 35-52-7-96 IS REPEALED [EFFECTIVE JULY
1, 2025]. Sec. 96. IC 7.1-5-11-16 defines a crime concerning alcohol.
   SECTION 70. IC 35-52-7-97 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2025]: Sec. 97. IC 7.1-7-5-5 defines a crime
concerning products containing a nicotine analogue.
   SECTION 71. An emergency is declared for this act.

HEA 1275 — Concur
Speaker of the House of Representatives

President of the Senate

President Pro Tempore

Governor of the State of Indiana

Date:                             Time:

HEA 1275 — Concur
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