Indiana HB 1086: Alcoholic beverage sales.

Bill Text

Introduced Version
HOUSE BILL No. 1086
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DIGEST OF INTRODUCED BILL
Citations Affected: IC 7.1-1-3-33.5; IC 7.1-3; IC 7.1-5-3-6;
IC 7.1-5-10; IC 35-52-7-76.1.
Synopsis: Alcoholic beverage sales. Allows a bar or restaurant
(retailer) to prepare, sell, and deliver alcoholic beverages for carryout
or delivery in sealed, nonoriginal containers. Allows a retailer to reduce
the price of alcoholic beverages during a part of the day. Prohibits a
retailer from doing the following: (1) Allowing a game on the licensed
premises that: (A) is determined by the quantity of alcoholic beverages
consumed by a patron; and (B) awards alcoholic beverage prizes. (2)
Selling or serving an unlimited or indefinite amount of alcoholic
beverages for a fixed price. After June 30, 2024, requires liquor
liability insurance or an endorsement with coverage of at least
$500,000 to obtain or renew a retailer's permit. Requires compliance
with the insurance coverage requirement not later than January 1, 2025,
for a retailer's permit issued before July 1, 2024.
Effective: July 1, 2024.
Teshka, Manning, Criswell
January 8, 2024, read first time and referred to Committee on Public Policy.
2024 IN 1086—LS 6644/DI 87

Introduced
Second Regular Session of the 123rd General Assembly (2024)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
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additions will appear in this style type, and deletions will appear in this style type.
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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 2023 Regular Session of the General Assembly.
HOUSE BILL No. 1086
A BILL FOR AN ACT to amend the Indiana Code concerning
alcohol and tobacco.
Be it enacted by the General Assembly of the State of Indiana:
1 SECTION 1. IC 7.1-1-3-33.5 IS ADDED TO THE INDIANA
2 CODE AS A NEW SECTION TO READ AS FOLLOWS
3 [EFFECTIVE JULY 1, 2024]: Sec. 33.5. "Qualified container"
4 means a clean, sealable container that is for the sale of alcoholic
5 beverages for consumption off the premises, that:
6 (1) has a liquid capacity of not more than four (4) quarts; and
7 (2) after the container is filled, is sealed with a device or
8 material that is used to fully close off the container securely
9 without any perforations or straw holes.
10 SECTION 2. IC 7.1-3-1-6.4 IS ADDED TO THE INDIANA CODE
11 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
12 1, 2024]: Sec. 6.4. (a) Except as provided in subsection (c), the
13 holder of a retailer's permit must maintain during the term of the
14 permit:
15 (1) a liquor liability insurance policy that has total coverage
16 of at least five hundred thousand dollars ($500,000); or
17 (2) a liquor liability endorsement:
2024 IN 1086—LS 6644/DI 87

2
1 (A) to a general liability insurance policy; and
2 (B) that has total coverage of at least five hundred
3 thousand dollars ($500,000).
4 (b) The commission may deny, suspend, revoke, or not renew a
5 permit, if the permit holder fails to maintain the insurance
6 coverage required under this section.
7 (c) If a retailer's permit is deposited with the commission under
8 IC 7.1-3-1.1, the insurance coverage required under subsection (a)
9 does not apply while the permit is held by the commission on
10 deposit. However, the commission may not make the permit active
11 until the permit holder complies with subsection (a).
12 (d) The holder of a retailer's permit must provide the
13 commission with proof of insurance coverage:
14 (1) to apply for or renew a permit;
15 (2) before the commission may make a permit active that is on
16 deposit under IC 7.1-3-1.1; or
17 (3) at any time, upon the request of the commission.
18 (e) After June 30, 2024, the commission may not:
19 (1) issue, renew, or transfer a retailer's permit; or
20 (2) make a permit active that is on deposit with the
21 commission under IC 7.1-3-1.1;
22 unless the permit applicant or permit holder complies with this
23 section. This subsection expires July 1, 2027.
24 (f) A holder of an active retailer's permit issued before July 1,
25 2024, must comply with this section not later than January 1, 2025,
26 or the commission may suspend or revoke the permit. This
27 subsection expires July 1, 2027.
28 SECTION 3. IC 7.1-3-4-6, AS AMENDED BY P.L.194-2021,
29 SECTION 31, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
30 JULY 1, 2024]: Sec. 6. (a) The holder of a beer retailer's permit shall
31 be entitled to purchase beer for sale under his the permit only from a
32 permittee entitled to sell to him the beer retailer under t