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Citations Affected: IC 7.1-2; IC 7.1-3.

Synopsis: Alcoholic beverage matters. Makes certain changes concerning the requirements for the alcohol and tobacco commission (commission) in maintaining the registry of all retailer's and dealer's permits. Removes and repeals certain provisions concerning residency requirements for alcoholic beverage retailer's and dealer's permits and liquor wholesaler's permits. Prohibits the commission from issuing any permit to foreign corporations, limited liability partnerships, or limited liability companies not qualified to do business in Indiana. (Current law prohibits the commission from issuing certain permits to foreign corporations, limited liability partnerships, or limited liability companies not qualified to do business in Indiana.) Allows the commission to issue an order directing a holder of an alcoholic beverage permit to cease and desist in: (1) the manufacturing, rectifying, distributing, transporting, or selling of; or (2) otherwise dealing in; an alcoholic beverage that the commission reasonably believes has a dangerously harmful effect on the health or well-being of individuals who consume the alcoholic beverage. Allows the permittee to: (1) request a hearing regarding the commission's determination that the alcoholic beverage is harmful; and (2) seek judicial review of the final action by the commission. Allows the commission to fine, suspend, or revoke the permit of a permittee who violates a cease and desist order issued under this provision. Makes conforming changes.

Effective: Upon passage; July 1, 2012.

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Davis, Welch, Turner

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    January 11, 2012, read first time and referred to Committee on Public Policy.
    January 25, 2012, amended, reported _ Do Pass.

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PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional provision adopted), the text of the new provision will appear in this style type. Also, the word NEW will appear in that style type in the introductory clause of each SECTION that adds a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts between statutes enacted by the 2011 Regular Session of the General Assembly.

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

SOURCE: IC 7.1-2-3-9.1; (12)HB1299.1.1. -->     SECTION 1. IC 7.1-2-3-9.1 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2012]: Sec. 9.1. (a) The commission shall prepare and maintain, available for public inspection, a an electronic registry of all retailer and dealer retailer's and dealer's permits (including supplemental permits) issued by it, the commission, categorized by type of permit. and by the type of establishment to which it is issued. The registry of permits shall:
        (1) be subdivided in a format that is capable of being subdivided on a county by county basis, and further subdivided capable of being subdivided by city, town, and unincorporated area;
        (2) contain the number of permits authorized by the quota, and the number of permits currently issued;
        (3) contain the name of the owner of the permit, the address of the licensed premises, the assumed business name under which the business is conducted, and, if a corporation, the names of the president and secretary; and

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        (4) be made current annually, to indicate by specific notation any new permits that were issued or any existing permits that were transferred in any manner within the prior year. as a result of an increase in population or annexation.
    (b) The commission shall distribute one (1) complete copy of the registry of permits for that particular county to each county clerk, at no cost to the county clerk, make the registry, each time the registry is made current, The county clerk shall immediately notify the county treasurer that the registry has been received and make the registry available for copying by the county treasurer. Each county clerk shall maintain a copy of the registry of permits available for public inspection in the county clerk's office during normal business hours. available for public inspection on the Internet through the computer gateway administered by the office of technology established by IC 4-13.1-2-1.
    (c) The commission shall provide for the sale of the registry of permits to the public on a cost basis, both as a complete statewide registry and as a countywide registry. The registry must be available for sale on the Internet through the computer gateway administered by the office of technology established by IC 4-13.1-2-1.

SOURCE: IC 7.1-3-2-2; (12)HB1299.1.2. -->     SECTION 2. IC 7.1-3-2-2, AS AMENDED BY P.L.186-2011, SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 2. (a) Except as provided in subsection (b), the commission may issue a brewer's permit only to:
        (1) an individual;
        (2) a partnership; all the partners of which are bona fide residents of Indiana;
        (3) a limited liability company; all the members of which are bona fide residents of Indiana; or
        (4) a corporation organized and existing under the laws of Indiana and having authority under its the corporation's charter to manufacture or sell beer.
    (b) The commission may issue a brewer's permit to a brewer for a brewery that manufactures not more than thirty thousand (30,000) barrels of beer in a calendar year to:
        (1) an individual;
        (2) a partnership organized and existing under the laws of Indiana;
        (3) a limited liability company organized and existing under the laws of Indiana; or
        (4) a corporation organized and existing under the laws of

Indiana.

SOURCE: IC 7.1-3-6-2; (12)HB1299.1.3. -->     SECTION 3. IC 7.1-3-6-2 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 2. Persons Eligible for Permits. The commission may issue a temporary beer permit to a person who is qualified to hold a beer retailer's permit and who has such other qualifications as the commission may prescribe by a provisional order until it adopts a rule or regulation on the matter. However, the special disqualifications listed in IC 1971, 7.1-3-4-2(c), (h), and (m) and the residency requirements provided in IC 1971, 7.1-3-21-3, IC 7.1-3-4-2(a)(3), IC 7.1-3-4-2(a)(8), and IC 7.1-3-4-2 (a)(13) shall not apply to an applicant for a temporary beer permit.

SOURCE: IC 7.1-3-16-6; (12)HB1299.1.4. -->     SECTION 4. IC 7.1-3-16-6 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 6. Persons Eligible for Permits. The commission may issue a temporary wine permit to a person who is qualified to hold a beer retailer's permit and who has such other qualifications as the commission may prescribe by a provisional order until it adopts a rule or regulation on the matter. However, the special disqualifications listed in IC 1971, 7.1-3-4-2(c), (h), and (m) and the residency requirements provided in IC 1971, 7.1-3-21-3, IC 7.1-3-4-2(a)(3), IC 7.1-3-4-2(a)(8), and IC 7.1-3-4- 2(a)(13) shall not apply to an applicant for a temporary wine permit.

SOURCE: IC 7.1-3-21-0.1; (12)HB1299.1.5. -->     SECTION 5. IC 7.1-3-21-0.1, AS ADDED BY P.L.220-2011, SECTION 174, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 0.1. Notwithstanding the amendments made to sections 3 (repealed), 5, 5.2, and 5.4 of this chapter by P.L.72-2004, the residency requirement of five (5) years for beer wholesalers under sections 3 (repealed), 5, 5.2, and 5.4 of this chapter (as those provisions existed on June 30, 2004) shall remain in effect for all contracts entered into before July 1, 2004, under which a permit is to be transferred from an Indiana resident to a person who was not an Indiana resident at the time of execution of the contract.

SOURCE: IC 7.1-3-21-3; (12)HB1299.1.6. -->     SECTION 6. IC 7.1-3-21-3 IS REPEALED [EFFECTIVE UPON PASSAGE]. Sec. 3. The commission shall not issue:
        (1) an alcoholic beverage retailer's or dealer's permit of any type; or
        (2) a liquor wholesaler's permit;
to a person who has not been a continuous and bona fide resident of Indiana for five (5) years immediately preceding the date of the application for a permit.

SOURCE: IC 7.1-3-21-5; (12)HB1299.1.7. -->     SECTION 7. IC 7.1-3-21-5, AS AMENDED BY P.L.165-2006,

SECTION 30, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 5. (a) The commission shall not issue:
        (1) an alcoholic beverage retailer's or dealer's permit of any type; or
        (2) a liquor wholesaler's permit;
to a corporation unless sixty percent (60%) of the outstanding common stock is owned by persons who have been continuous and bona fide residents of Indiana for five (5) years.
    (b) The commission shall not issue a liquor wholesaler's permit to a corporation unless at least one (1) of the stockholders shall have been a resident, for at least one (1) year immediately prior to making application for the permit, of the county in which the licensed premises are to be situated.
    (c) The commission shall not issue:
        (1) an alcoholic beverage retailer's or dealer's permit; or
        (2) a liquor wholesaler's permit;
of any type to a corporation unless each officer and stockholder of a the corporation shall possess all other possesses the same qualifications as those required of an individual applicant for that particular type of permit.

SOURCE: IC 7.1-3-21-5.2; (12)HB1299.1.8. -->     SECTION 8. IC 7.1-3-21-5.2, AS AMENDED BY P.L.165-2006, SECTION 31, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 5.2. (a) The commission shall not issue:
        (1) an alcoholic beverage retailer's or dealer's permit of any type; or
        (2) a liquor wholesaler's permit;
to a limited partnership unless at least sixty percent (60%) of the partnership interest is owned by persons who have been continuous and bona fide residents of Indiana for five (5) years.
    (b) The commission shall not issue a liquor wholesaler's permit to a limited partnership unless for at least one (1) year immediately before making application for the permit, at least one (1) of the persons having a partnership interest has been a resident of the county in which the licensed premises are to be situated.
    (c) The commission shall not issue:
        (1) an alcoholic beverage retailer's or dealer's permit; or
        (2) a liquor wholesaler's permit;
of any type to a limited partnership unless each general partner and limited partner of a the limited partnership must possess all other possesses the same qualifications as those required of an individual applicant for that particular type of permit.

SOURCE: IC 7.1-3-21-5.4; (12)HB1299.1.9. -->     SECTION 9. IC 7.1-3-21-5.4, AS AMENDED BY P.L.165-2006,

SECTION 32, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 5.4. (a) The commission shall not issue:
        (1) an alcoholic beverage retailer's or dealer's permit of any type; or
        (2) a liquor wholesaler's permit;
to a limited liability company unless at least sixty percent (60%) of the membership interest is owned by persons who have been continuous and bona fide residents of Indiana for five (5) years.
    (b) The commission shall not issue a liquor wholesaler's permit to a limited liability company unless for at least one (1) year immediately before making application for the permit, at least one (1) of the persons having a membership interest has been a resident of the county in which the licensed premises are to be situated.
    (c) The commission shall not issue:
        (1) an alcoholic beverage retailer's or dealer's permit; or
        (2) a liquor wholesaler's permit;
of any type to a limited liability company unless each manager and member of a the limited liability company must possess all other possesses the same qualifications as those required of an individual applicant for that particular type of permit.

SOURCE: IC 7.1-3-21-6; (12)HB1299.1.10. -->     SECTION 10. IC 7.1-3-21-6, AS AMENDED BY P.L.233-2007, SECTION 31, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 6. (a) The provisions of sections 4, 5, 5.2, and 5.4 of this chapter concerning retail and dealer partnerships, corporations, limited partnerships, and limited liability companies shall not apply to the issuance of:
        (1) a dining car permit;
        (2) a boat permit;
        (3) a drug store permit;
        (4) a grocery store permit;
        (5) a hotel permit;
        (6) an airplane permit;
        (7) a gaming site permit;
        (8) a horse track permit;
        (9) a satellite facility permit; or
        (10) a retail permit to an establishment:
            (A) that is sufficiently served by adequate law enforcement at its permit location; and
            (B) whose annual gross food sales at the permit location:
                (i) exceed one hundred thousand dollars ($100,000); or
                (ii) in the case of a new application and as proved by the applicant to the local board and the commission, will exceed

two hundred thousand dollars ($200,000) by the end of the two (2) year period from the date of the issuance of the permit.
    (b) The commission shall not issue a any alcoholic beverage permit listed in subsection (a) to a foreign:
        (1) corporation;
        (2) limited partnership; or
        (3) limited liability company;
that is not duly qualified to do business in Indiana.

SOURCE: IC 7.1-3-21-7; (12)HB1299.1.11. -->     SECTION 11. IC 7.1-3-21-7 IS REPEALED [EFFECTIVE UPON PASSAGE]. Sec. 7. Restaurant Corporations: Exception. The provisions of IC 1971, 7.1-3-21-5, shall not apply to the common stock ownership of a corporation holding a restaurant permit and having less than sixty per cent (60%) resident ownership prior to March 14, 1963.

SOURCE: IC 7.1-3-23-2; (12)HB1299.1.12. -->     SECTION 12. IC 7.1-3-23-2, AS AMENDED BY P.L.3-2008, SECTION 69, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2012]: Sec. 2. (a) The commission may:
        (1) fine or suspend or revoke the permit of; or
        (2) fine and suspend or revoke the permit of;
a permittee for the violation of a provision of this title, or of a rule or regulation of the commission, or a cease and desist order issued by the commission under section 46 of this chapter. The commission may fine a permittee for each day the violation continues if the violation is of a continuing nature.
    (b) The commission shall revoke the permit of a permittee for the violation of IC 35-45-5-3, IC 35-45-5-3.5, or IC 35-45-5-4. A finding that a permittee has violated IC 35-45-5-3, IC 35-45-5-3.5, or IC 35-45-5-4 must be supported by a preponderance of the evidence.

SOURCE: IC 7.1-3-23-46; (12)HB1299.1.13. -->     SECTION 13. IC 7.1-3-23-46 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2012]: Sec. 46. (a) The commission may, with or without a prior hearing, issue an order directing a permittee to cease and desist in:
        (1) the manufacturing, rectifying, distributing, transporting, or selling of; or
        (2) otherwise dealing in;
an alcoholic beverage that the commission reasonably believes has a dangerously harmful effect on the health or well-being of individuals who consume the alcoholic beverage.
     (b) Within fifteen (15) days after a cease and desist order has been served under subsection (a), the permittee may request a hearing on the question of whether the alcoholic beverage has a

dangerously harmful effect on the health or well-being of individuals who consume the alcoholic beverage.
     (c) The commission shall:
        (1) not later than fifteen (15) days after the date of a hearing described under subsection (b), take final action and enter an appropriate order on the matter; and
        (2) notify the permittee of the commission's action in the manner provided by IC 4-21.5-3-1(b).
    (d) The permittee may, not later than ten (10) days after the date the permittee receives the notice of final action from the commission, seek judicial review under IC 4-21.5-5. The jurisdiction for judicial review of this section is limited under IC 7.1-2-8-1.

SOURCE: ; (12)HB1299.1.14. -->     SECTION 14. An emergency is declared for this act.