IndianaHB 1275First Regular Session 124th General Assembly (2025)HouseWALLET

Alcohol and tobacco commission matters.

Sponsored By: Ethan Manning (Republican)

Signed by Governor

Summary

Makes the following changes: (1) Expands the purpose of the Richard D. Doyle tobacco education and enforcement fund. (2) Amends type II gambling game prize limits to include sports themed gaming. (3) Replaces a reference in the definition of a "Type II gambling game" to an Indiana gaming commission memorandum with a substantive definition. (4) Eliminates the requirement that a farm winery or artisan distiller annually submit excise tax returns to the alcohol and tobacco commission (ATC). (5) Removes a phrase that requires an e-liquid to contain nicotine to be considered a "tobacco product" under provisions concerning tobacco sales certificates. (6) Amends local alcoholic beverage board members' duties to reflect electronic record keeping. (7) Requires an employee or contractor who controls entry into age restricted premises or otherwise checks an individual's proof of age to complete alcohol server training. (8) Prohibits the ATC from issuing an alcoholic beverage permit unless a person has on file with the ATC a verified list containing the name and address of each person or entity: (A) with actual authority to direct or control the operation of the permit; and (B) holding at least a 5% (instead of 2%) interest in the permit and the business conducted, or to be conducted, under it. (9) Prohibits charging an individual a cover fee to access unlimited alcoholic beverages. Allows the sale of event packages. (10) Replaces, in statutes regarding unlawful sales to minors, references to "tobacco", "e-liquid", or "electronic cigarette" with the inclusive term "tobacco product". (11) Allows a person to participate electronically in an online auction or raffle but requires alcoholic beverage prizes to be collected in person. (12) Modifies the insurance coverage requirements that apply to specified permit holders. (13) Allows specified local government entities to permit the retail sale of alcoholic beverages in certain areas if a person that has an agreement to act as concessionaire for the permitted premises applies for and secures the necessary permits. (14) Establishes requirements regarding permittee donations to qualified organizations that are permittees conducting an event. (15) Prohibits, with exceptions, the sale, use, and distribution of flavored nitrous oxide. Repeals statutes that do the following: (1) Allow the ATC to require registration of alcoholic beverage brands and other information used in advertising. (2) Require attachment of an identification marker to a keg at the time of sale. (3) Make it a Class C misdemeanor to transport an alcoholic beverage to a retailer or dealer on a Sunday.

public policythe senate

Personalized for You

How does this bill affect your finances?

Personalize government policy and PRIA will tell you what this bill means for your household, plus every other piece of legislation we track. PRIA reads each provision against your financial profile to show you exactly what matters to your wallet.

Bill Overview

Analyzed Economic Effects

18 provisions identified: 9 benefits, 5 costs, 4 mixed.

More brewery access for families

Minors can visit qualifying small breweries and restaurants owned by their permit holders with an eligible adult. That adult must be a parent, legal guardian, custodian, or family member age 21 or older. Minors can enter areas open to that adult, including places where beer is made, sold, or consumed.

Online entry for qualifying alcohol raffles

Beginning July 1, 2025, participants can enter qualifying electronic alcohol raffles without attending in person. The entry system or method must have commission approval. A person designated by the organization, age 21 or older, must still deliver the prize in person.

Alcohol suppliers gain charity event options

The law expands alcohol sales, donations, and deliveries to qualified organizations for authorized events and charity auctions. Suppliers include brewers, farm wineries, wine retailers and dealers, artisan distillers, and specified beer and liquor permit holders. Artisan distillers can supply only liquor they make. Wine wholesalers can supply wine, mixed beverages, and flavored malt beverages. Wholesalers must use stock already on their premises before invoicing and delivery; liquor wholesalers also face container and commission quantity rules.

Keg buyers still sign purchase receipts

Beginning July 1, 2025, sellers no longer need the covered identification markers on kegs sold for off-site consumption. Related infractions for missing or altered markers are repealed. Sellers must still get signed purchaser receipts and face penalties or permit suspension for failing to do so. Giving false receipt information remains a Class B infraction.

Less paperwork for alcohol permit holders

Beginning July 1, 2025, the commission loses the repealed authority to require registration of alcohol brands, formulas, analyses, labels, and trademarks. Artisan distillers also stop sending annual copies of state and federal excise tax returns; their taxes do not change. Applicants must disclose owners with at least a 5% interest, up from 2%, and everyone who controls the permit. One commissioner can approve a later permit extension without a majority vote when good cause exists. The need must result from the commission, a local board, or a third party outside the permit holder's employment or control.

Lower insurance requirements for alcohol businesses

Beginning July 1, 2025, the law removes the $500,000 minimum for required liquor liability coverage. Covered retailers must still have a liquor liability policy or coverage added to a general liability policy. Craft manufacturers are covered only when they serve alcohol on their licensed premises. The requirement does not apply while a permit is on deposit or yearly on-site alcohol sales are under $25,000.

More venue operators can sell alcohol

Beginning July 1, 2025, qualifying concession operators can seek alcohol permits at specified public event facilities, community centers, golf courses, and marinas. Operators need an agreement with the relevant facility board or local government. Marina operators also need the required permits. Marina permits can allow carryout sales, but not home delivery.

Qualified groups gain alcohol event permissions

Qualified organizations can hold alcohol permits and accept permit-holder donations for authorized events and charity auctions. Outside-alcohol restrictions do not apply to establishments hosting these events when the organization purchases or receives the drinks. Beginning July 1, 2025, qualifying chapter 6.3 organizations are exempt from the specified registration requirement, but must meet the remaining requirements. For those events, alcohol served for on-site consumption must be in sealed bottles or sealed cases.

Tobacco fund supports broader enforcement

The Richard D. Doyle tobacco education and enforcement fund can support enforcement of tobacco laws generally, not just youth tobacco laws. It also supports youth smoking prevention and retailer education and training. This provision states no new funding amount.

Minors face tobacco fake-ID penalties

A minor commits a Class C infraction by possessing fake proof of age or identity with intent to buy tobacco. The provision states no fine amount.

Age-check workers count as alcohol servers

Beginning July 1, 2025, employees and contractors who check identification to verify age count as alcohol servers. This includes workers controlling entry to licensed premises restricted to people age 21 or older. These workers come under the alcohol-server rules.

Broader rules for tobacco retailers

Beginning July 1, 2025, the tobacco-permit chapter covers products containing tobacco or nicotine, including e-liquid, intended for human consumption. Products federally approved for tobacco cessation are excluded. Separately, the commission can add contraband disposal costs to sanctions against tobacco or electronic cigarette certificate holders. This applies when criminal conduct at their location involves possessing or selling illegal substances or other contraband.

Limits on alcohol sales and promotions

Alcohol permit holders cannot sell to someone without the proper permit, except consumer or employee sales expressly allowed by law. Knowing or intentional violations are Class B misdemeanors. Retailers cannot charge individual patrons an entry or cover fee for unlimited alcohol; this also covers private clubs. Event packages can still offer unlimited amounts at an established price billed to the event's organizers. Private functions closed to the public are outside that section.

Flavored nitrous oxide faces new bans

Beginning July 1, 2025, knowingly or intentionally selling, using, or distributing flavored nitrous oxide is a Class B misdemeanor. A prior unrelated conviction under the section raises it to a Class A misdemeanor. Exceptions cover restaurant suppliers providing it for culinary purposes and legitimate cooking uses. Licensed distributors separately face license suspension or revocation and disposal-cost sanctions for handling flavored nitrous oxide. Commission permit or certificate holders also face suspension, revocation, and disposal-cost sanctions for illegal nitrous oxide or flavored nitrous oxide sales, distribution, or use.

More sports games, higher ticket caps

Beginning July 1, 2025, type II gambling includes sports-themed tip board and pull tab games tied to professional or Division I college events. Tickets for games in the law's third game category can cost up to $10 each. The other two categories remain capped at $5 per ticket. Operators do not have to charge the maximum.

Changed eligibility for alcohol business permits

Beginning July 1, 2025, beer retailer eligibility uses Indiana's lawful-status standard instead of the prior rule barring aliens. Applicants without that lawful status cannot receive a beer retailer permit. Liquor retailer applicants must pass the listed disqualification rules and seek to sell liquor for on-site consumption. Wine retailer applicants no longer need to operate a restaurant. They still cannot hold or apply for another permit, must pass the listed disqualification rules, and must seek on-site wine sales.

Donation checks for permitted charity events

Beginning July 1, 2025, permit holders must submit proposed donations for review at least 15 days before qualified-organization events. Cash donations from other permit holders generally need commission approval; donations cannot require excluding competing permit holders' drinks. Permit holders cannot offer anything of value for a donation. Donors must provide delivery records, and organizations must track donated and consumed drinks without selling donations as normal stock. The commission can approve cash donations and set limits; annual limits cannot exceed 5,000 750-milliliter bottles each of wine and liquor, or 1,000 cases of 12-ounce beer bottles per organization.

Revised tobacco store and display limits

Beginning July 1, 2025, entry, self-service display, and coin-machine rules use tobacco-product wording rather than separately listing electronic cigarettes. Stores with at least 85% of gross sales from tobacco products must bar people under 21 and post age notices and a quit-smoking number at every entrance. Self-service displays are exempt at stores meeting that sales test and barring under-21 entry. Coin-machine exceptions cover specified licensed premises, private workplaces, clubs, and riverboats with entry limited to ages 21 and older, but not listed areas accessible to younger people. Entry violations carry escalating civil penalties; six violations in one year are a Class B infraction.

Sponsors & Cosponsors

Sponsor

  • Ethan Manning

    Republican • House

Cosponsors

  • Blake Johnson

    Democratic • House

  • Cindy Ledbetter

    Republican • House

  • Kyle Walker

    Republican • Senate

  • La Keisha Jackson

    Democratic • Senate

  • Lonnie Randolph

    Democratic • Senate

  • Mark Spencer

    Democratic • Senate

  • Mike Bohacek

    Republican • Senate

  • Peggy Mayfield

    Republican • House

  • Ron Alting

    Republican • Senate

Roll Call Votes

All Roll Calls

Yes: 209 • No: 16

House vote • 4/17/2025

House concurred with Senate amendments

Yes: 86 • No: 3

Senate vote • 4/15/2025

Third reading: passed

Yes: 39 • No: 10

House vote • 1/30/2025

Third reading: passed

Yes: 84 • No: 3

Actions Timeline

  1. Signed by the Governor

    5/1/2025House
  2. Public Law 163

    5/1/2025House
  3. Signed by the President of the Senate

    4/23/2025Senate
  4. Signed by the President Pro Tempore

    4/22/2025Senate
  5. Signed by the Speaker

    4/21/2025House
  6. House concurred with Senate amendments; Roll Call 483: yeas 86, nays 3

    4/17/2025House
  7. Returned to the House with amendments

    4/16/2025Senate
  8. Motion to concur filed

    4/16/2025House
  9. Senator Bohacek added as cosponsor

    4/15/2025Senate
  10. Third reading: passed; Roll Call 435: yeas 39, nays 10

    4/15/2025Senate
  11. Second reading: amended, ordered engrossed

    4/14/2025Senate
  12. Amendment #3 (Alting) prevailed; voice vote

    4/14/2025Senate
  13. Senators Jackson L and Spencer added as cosponsors

    4/10/2025Senate
  14. Senator Walker K added as second sponsor

    4/10/2025Senate
  15. Senator Randolph added as cosponsor

    4/10/2025Senate
  16. Committee report: amend do pass, adopted

    4/3/2025Senate
  17. First reading: referred to Committee on Public Policy

    2/18/2025Senate
  18. Referred to the Senate

    1/31/2025House
  19. Third reading: passed; Roll Call 53: yeas 84, nays 3

    1/30/2025House
  20. Senate sponsor: Senator Alting

    1/30/2025House
  21. Second reading: ordered engrossed

    1/27/2025House
  22. Representative Johnson B added as coauthor

    1/27/2025House
  23. Committee report: amend do pass, adopted

    1/21/2025House
  24. Representatives Mayfield and Ledbetter added as coauthors

    1/21/2025House
  25. First reading: referred to Committee on Public Policy

    1/13/2025House

Bill Text

  • Engrossed House Bill (H)

  • Enrolled House Bill (H)

  • House Bill (S)

  • Introduced House Bill (H)

Related Bills

Back to State Legislation