CONFERENCE COMMITTEE REPORT

DIGEST FOR EHB 1369



Citations Affected: IC 6-1.1-12.1-3 ; IC 7.1-2-3-16.5 ; IC 7.1-3; 10IC 7.1-5-9-10; IC 7.1-5-9-5.

Synopsis: Alcoholic beverage matters. Allows the alcohol and tobacco commission to issue a beer or wine wholesaler's permit to a corporation, a limited liability company, or a limited partnership if no stockholder or person having an interest is a resident of the county in which the licensed premises are to be situated. Allows the holder of a retailer's permit to have an interest in a brewer's permit of a brewery that manufactures not more than 20,000 barrels in a calendar year. Provides that the holder of a beer, wine, and liquor retailer permit may allow the self-service of alcoholic beverages in a suite of a civic center, a sports arena, a stadium, an exhibition hall, an auditorium, a theater, a tract that contains a paved auto racetrack more than two miles in length, or a convention center. Provides that if an applicant for an alcoholic beverage permit for a restaurant in a municipal riverfront development project already holds a retailer's permit for the premises, the applicant is not eligible for the special permit. Allows a supplemental retailer to sell alcoholic beverages on Sunday from 10 a.m. to 3 a.m. Allows a beer, wine, or liquor wholesaler to obtain a deduction for the redevelopment or rehabilitation of real property in areas designated as economic revitalization areas. Repeals a statute that prohibits a corporation that does business in Indiana from enabling a nonresident of Indiana to control or acquire an interest in a beer wholesaler's permit. Makes conforming amendments. (This conference committee report does the following: (1) Removes a provision that requires, rather than allows, the commission to provide procedures for retailers and dealers to enter into a formal group purchasing agreement. (2) Allows all supplemental retailers to sell alcoholic beverages on Sunday from 10 a.m. to 3 a.m. (3) Allows a beer, wine, or liquor wholesaler to obtain a deduction for the redevelopment or rehabilitation of real property in an area designated as an economic revitalization area. Makes conforming amendments. (4) Allows the alcohol and tobacco commission to issue a beer or wine wholesaler's permit to a limited liability company, limited partnership, corporation, if no person having a membership interest has been a resident of the county in which the licensed premises are to be situated. This conference committee report removes provisions from EHB 1369 that allow the commission to issue a beer wholesaler's permit to: (1) a person who is not an Indiana resident; (2) a partnership in which each member of the partnership does not possess the same qualifications as those required of an individual permit applicant; (3) a corporation, limited liability company, or limited

partnership of which less than 60% of the stock or interest is owned by persons who are Indiana residents.)

Effective: July 1, 2003.



CONFERENCE COMMITTEE REPORT

MR. PRESIDENT:
    Your Conference Committee appointed to confer with a like committee from the House upon Engrossed Senate Amendments to Engrossed House Bill No. 1369 respectfully reports that said two committees have conferred and agreed as follows to wit:

    that the House recede from its dissent from all Senate amendments and that the House now concur in all Senate amendments to the bill and that the bill be further amended as follows:

    Delete everything after the enacting clause and insert the following:

SOURCE: IC 6-1.1-12.1-3; (03)CC136905.1.1. -->     SECTION 1. IC 6-1.1-12.1-3 , AS AMENDED BY P.L.90-2002, SECTION 118, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 3. (a) An applicant must provide a statement of benefits to the designating body. If the designating body requires information from the applicant for economic revitalization area status for use in making its decision about whether to designate an economic revitalization area, the applicant shall provide the completed statement of benefits form to the designating body before the hearing required by section 2.5(c) of this chapter. Otherwise, the statement of benefits form must be submitted to the designating body before the initiation of the redevelopment or rehabilitation for which the person desires to claim a deduction under this chapter. The department of local government finance shall prescribe a form for the statement of benefits. The statement of benefits must include the following information:
        (1) A description of the proposed redevelopment or rehabilitation.
        (2) An estimate of the number of individuals who will be employed or whose employment will be retained by the person as a result of the redevelopment or rehabilitation and an estimate of the annual

salaries of these individuals.
        (3) An estimate of the value of the redevelopment or rehabilitation.
With the approval of the designating body, the statement of benefits may be incorporated in a designation application. Notwithstanding any other law, a statement of benefits is a public record that may be inspected and copied under IC 5-14-3-3.
    (b) The designating body must review the statement of benefits required under subsection (a). The designating body shall determine whether an area should be designated an economic revitalization area or whether a deduction should be allowed, based on (and after it has made) the following findings:
        (1) Whether the estimate of the value of the redevelopment or rehabilitation is reasonable for projects of that nature.
        (2) Whether the estimate of the number of individuals who will be employed or whose employment will be retained can be reasonably expected to result from the proposed described redevelopment or rehabilitation.
        (3) Whether the estimate of the annual salaries of those individuals who will be employed or whose employment will be retained can be reasonably expected to result from the proposed described redevelopment or rehabilitation.
        (4) Whether any other benefits about which information was requested are benefits that can be reasonably expected to result from the proposed described redevelopment or rehabilitation.
        (5) Whether the totality of benefits is sufficient to justify the deduction.
A designating body may not designate an area an economic revitalization area or approve a deduction unless the findings required by this subsection are made in the affirmative.
    (c) Except as provided in subsections (a) through (b), the owner of property which is located in an economic revitalization area is entitled to a deduction from the assessed value of the property. If the area is a residentially distressed area, the period is not more than five (5) years. For all other economic revitalization areas designated before July 1, 2000, the period is three (3), six (6), or ten (10) years. For all economic revitalization areas designated after June 30, 2000, the period is the number of years determined under subsection (d). The owner is entitled to a deduction if:
        (1) the property has been rehabilitated; or
        (2) the property is located on real estate which has been redeveloped.
The owner is entitled to the deduction for the first year, and any successive year or years, in which an increase in assessed value resulting from the rehabilitation or redevelopment occurs and for the following years determined under subsection (d). However, property owners who had an area designated an urban development area pursuant to an application filed prior to January 1, 1979, are only entitled to a deduction for a five (5) year period. In addition, property owners who are entitled to a deduction under this chapter pursuant to an application filed after December 31, 1978, and before January 1, 1986, are entitled to a deduction for a ten (10) year period.


    (d) For an area designated as an economic revitalization area after June 30, 2000, that is not a residentially distressed area, the designating body shall determine the number of years for which the property owner is entitled to a deduction. However, the deduction may not be allowed for more than ten (10) years. This determination shall be made:
        (1) as part of the resolution adopted under section 2.5 of this chapter; or
        (2) by resolution adopted within sixty (60) days after receiving a copy of a property owner's certified deduction application from the county auditor. A certified copy of the resolution shall be sent to the county auditor who shall make the deduction as provided in section 5 of this chapter.
A determination about the number of years the deduction is allowed that is made under subdivision (1) is final and may not be changed by following the procedure under subdivision (2).
    (e) Except for deductions related to redevelopment or rehabilitation of real property in a county containing a consolidated city or a deduction related to redevelopment or rehabilitation of real property initiated before December 31, 1987, in areas designated as economic revitalization areas before that date, a deduction for the redevelopment or rehabilitation of real property may not be approved for the following facilities:
        (1) Private or commercial golf course.
        (2) Country club.
        (3) Massage parlor.
        (4) Tennis club.
        (5) Skating facility (including roller skating, skateboarding, or ice skating).
        (6) Racquet sport facility (including any handball or racquetball court).
        (7) Hot tub facility.
        (8) Suntan facility.
        (9) Racetrack.
        (10) Any facility the primary purpose of which is:
            (A) retail food and beverage service;
            (B) automobile sales or service; or
            (C) other retail;
        unless the facility is located in an economic development target area established under section 7 of this chapter.
        (11) Residential, unless:
            (A) the facility is a multifamily facility that contains at least twenty percent (20%) of the units available for use by low and moderate income individuals;
            (B) the facility is located in an economic development target area established under section 7 of this chapter; or
            (C) the area is designated as a residentially distressed area.
        (12) A package liquor store that holds a liquor dealer's permit under IC 7.1-3-10 or any other entity that is required to operate under a license issued under IC 7.1. This subdivision does not apply to an applicant that:
            (A) was eligible for tax abatement under this chapter before July

1, 1995; or
            (B) is described in IC 7.1-5-7-11 ; or
            (C) operates an entity under:
                (i) a beer wholesaler's permit under IC 7.1-3-3 ;
                (ii) a liquor wholesaler's permit under IC 7.1-3-8 ; or
                (iii) a wine wholesaler's permit under IC 7.1-3-13 ;
            for which the applicant claims a deduction under this chapter.

    (f) This subsection applies only to a county having a population of more than two hundred thousand (200,000) but less than three hundred thousand (300,000). Notwithstanding subsection (e)(11), in a county subject to this subsection a designating body may, before September 1, 2000, approve a deduction under this chapter for the redevelopment or rehabilitation of real property consisting of residential facilities that are located in unincorporated areas of the county if the designating body makes a finding that the facilities are needed to serve any combination of the following:
        (1) Elderly persons who are predominately low-income or moderate-income persons.
        (2) Disabled persons.
A designating body may adopt an ordinance approving a deduction under this subsection only one (1) time. This subsection expires January 1, 2011.

SOURCE: IC 7.1-2-3-16.5; (03)CC136905.1.2. -->     SECTION 2. IC 7.1-2-3-16.5 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 16.5. (a) As used in this section, "facility" includes the following:
        (1) A facility to which IC 7.1-3-1-25 (a) applies.
        (2) A tract that contains a premises that is described in IC 7.1-3-1-14(e)(2). IC 7.1-3-1-14 (c)(2).
        (3) A horse track or satellite facility to which IC 7.1-3-17.7 applies.
        (4) A tract that contains an entertainment complex.
    (b) As used in this section, "tract" has the meaning set forth in IC 6-1.1-1-22.5.
    (c) A facility may advertise alcoholic beverages:
        (1) in the facility's interior; or
        (2) on the facility's exterior.
    (d) The commission may not exercise the prohibition power contained in section 16(a) of this chapter on advertising by a brewer, distiller, rectifier, or vintner in or on a facility.
    (e) Notwithstanding IC 7.1-5-5-10 and IC 7.1-5-5-11 , a facility may provide advertising to a permittee that is a brewer, distiller, rectifier, or vintner in exchange for compensation from that permittee.
SOURCE: IC 7.1-3-1-14; (03)CC136905.1.3. -->     SECTION 3. IC 7.1-3-1-14 , AS AMENDED BY P.L.136-2000, SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 14. (a) It is lawful for an appropriate permittee, unless otherwise specifically provided in this title, to sell alcoholic beverages each day Monday through Saturday from 7 a.m., prevailing local time, until 3 a.m., prevailing local time, the following day. Sales shall cease wholly on Sunday at 3 a.m., prevailing local time, and not be resumed until the following Monday at 7 a.m., prevailing local time.
    (b) It is lawful for the holder of a supplemental retailer's permit

which is not specified in subsection (c) to sell the appropriate alcoholic beverages on Sunday from noon, 10 a.m., prevailing local time, until 12:30 a.m., 3 a.m., prevailing local time, the following day.
    (c) It is lawful for the holder of a supplemental retailer's permit to sell the appropriate alcoholic beverages on Sunday from 11:00 a.m., prevailing local time, until 12:30 a.m., prevailing local time, the following day if the holder of the permit meets the following criteria:
        (1) the holder of the permit is a hotel; or
        (2) the holder of the permit meets the requirements of 905 IAC 1-41-2(a).
    (d) Notwithstanding subsections (b) and (c), if December 31 (New Year's Eve) is on a Sunday, it is lawful for the holder of a supplemental retailer's permit to sell the appropriate alcoholic beverages on Sunday, December 31 from the time provided in subsection (b) or (c) until 3 a.m. the following day.
    (e) (c) It is lawful for the holder of a permit under this article to sell alcoholic beverages at athletic or sports events held on Sunday upon premises that:
        (1) are described in section 25(a) of this chapter;
        (2) are a facility used in connection with the operation of a paved track more than two (2) miles in length that is used primarily in the sport of auto racing; or
        (3) are being used for a professional or an amateur tournament;
beginning one (1) hour before the scheduled starting time of the event or, if the scheduled starting time of the event is 1 p.m. or later, beginning at noon.
    (f) (d) It is lawful for the holder of a valid beer, wine, or liquor wholesaler's permit to sell to the holder of a valid retailer's or dealer's permit at any time.

SOURCE: IC 7.1-3-9-12; (03)CC136905.1.4. -->     SECTION 4. IC 7.1-3-9-12 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 12. (a) This section applies to:
        (1) the holder of a three-way permit that is issued to a civic center, a sports arena, a stadium, an exhibition hall, an auditorium, a theater, a tract that contains a premises that is described in IC 7.1-3-1-14 (c)(2), or a convention center; or
        (2) the holder of a catering permit while catering alcoholic beverages at a civic center, a sports arena, a stadium, an exhibition hall, an auditorium, a theater, a tract that contains a premises that is described in IC 7.1-3-1-14 (c)(2), or a convention center.
    (b) As used in this section, "suite" means an area in a building or facility referred to in subsection (a) that:
        (1) is not accessible to the general public;
        (2) has accommodations for not more than seventy-five (75) persons; and
        (3) is accessible only to persons who possess a ticket:
            (A) to an event in a building or facility referred to in subsection (a); and
            (B) that entitles the person to occupy the area while viewing the event described in clause (A).
The term does not include a restaurant, lounge, or concession area, even if access to the restaurant, lounge, or concession area is limited to certain ticket holders.
    (c) A permittee may allow the self-service of individual servings of alcoholic beverages in a suite.
    (d) A person who:
        (1) possesses a ticket described in subsection (b)(3); and
        (2) is at least twenty-one (21) years of age;
may obtain an alcoholic beverage in a suite by self-service.
    (e) A permittee may do any of the following:
        (1) Demand that a person occupying a suite provide:
            (A) a written statement under IC 7.1-5-7-4 ; and
            (B) identification indicating that the person is at least twenty-one (21) years of age.
        (2) Supervise the self-service of alcoholic beverages.
        (3) Have an employee in the suite who holds an employee permit under IC 7.1-3-18-9 to serve some or all of the alcoholic beverages.

SOURCE: IC 7.1-3-20-16; (03)CC136905.1.5. -->     SECTION 5. IC 7.1-3-20-16 , AS AMENDED BY P.L.170-2002, SECTION 55, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 16. (a) A permit that is authorized by this section may be issued without regard to the quota provisions of IC 7.1-3-22.
    (b) The commission may issue a three-way permit to sell alcoholic beverages for on premises consumption only to an applicant who is the proprietor, as owner or lessee, or both, of a restaurant facility in the passenger terminal complex of a publicly owned airport which is served by a scheduled commercial passenger airline certified to enplane and deplane passengers on a scheduled basis by a federal aviation agency. A permit issued under this subsection shall not be transferred to a location off the airport premises.
    (c) The commission may issue a three-way, two-way, or one-way permit to sell alcoholic beverages for on premises consumption only to an applicant who is the proprietor, as owner or lessee, or both, of a restaurant within a redevelopment project consisting of a building or group of buildings that:
        (1) was formerly used as part of a union railway station;
        (2) has been listed in or is within a district that has been listed in the federal National Register of Historic Places maintained pursuant to the National Historic Preservation Act of 1966, as amended; and
        (3) has been redeveloped or renovated, with the redevelopment or renovation being funded in part with grants from the federal, state, or local government.
A permit issued under this subsection shall not be transferred to a location outside of the redevelopment project.
    (d) The commission may issue a three-way, two-way, or one-way permit to sell alcoholic beverages for on premises consumption only to an applicant who is the proprietor, as owner or lessee, or both, of a restaurant:
        (1) on land; or
        (2) in a historic river vessel;
within a municipal riverfront development project funded in part with state and city money. A permit issued under this subsection may not be transferred. If an applicant already holds a retailer's permit for the premises, the applicant is not eligible for a permit under this section.
    (e) The commission may issue a three-way, two-way, or one-way permit to sell alcoholic beverages for on premises consumption only to an applicant who is the proprietor, as owner or lessee, or both, of a restaurant within a renovation project consisting of a building that:
        (1) was formerly used as part of a passenger and freight railway station; and
        (2) was built before 1900.
The permit authorized by this subsection may be issued without regard to the proximity provisions of IC 7.1-3-21-11.
    (f) The commission may issue a three-way permit for the sale of alcoholic beverages for on premises consumption at a cultural center for the visual and performing arts to a town that:
        (1) is located in a county having a population of more than four hundred thousand (400,000) but less than seven hundred thousand (700,000); and
        (2) has a population of more than twenty thousand (20,000) but less than twenty-three thousand (23,000).
SOURCE: IC 7.1-3-21-5; (03)CC136905.1.6. -->     SECTION 6. IC 7.1-3-21-5 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 5. (a) Corporations. The commission shall not issue an alcoholic beverage wholesaler's, retailer's or dealer's permit of any type 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 this state for five (5) years.
    (b) The commission shall not issue an alcoholic beverage a liquor wholesaler's permit of any type 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) Each officer and stockholder of a corporation shall possess all other qualifications required of an individual applicant for that particular type of permit.
SOURCE: IC 7.1-3-21-5.2; (03)CC136905.1.7. -->     SECTION 7. IC 7.1-3-21-5.2 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 5.2. (a) The commission shall not issue an alcoholic beverage wholesalers, retailer's or dealer's permit of any type 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 an alcoholic beverage a liquor wholesaler's permit of any type 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) Each general partner and limited partner of a limited partnership

must possess all other qualifications required of an individual applicant for that particular type of permit.

SOURCE: IC 7.1-3-21-5.4; (03)CC136905.1.8. -->     SECTION 8. IC 7.1-3-21-5.4 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 5.4. (a) The commission shall not issue an alcoholic beverage wholesalers, retailer's or dealer's permit of any type 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 an alcoholic beverage a liquor wholesaler's permit of any type 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) Each manager and member of a limited liability company must possess all other qualifications required of an individual applicant for that particular type of permit.
SOURCE: IC 7.1-5-9-10; (03)CC136905.1.9. -->     SECTION 9. IC 7.1-5-9-10 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 10. Retailer Owning Interest in Another Permit Prohibited. (a) Except as provided in subsection (b), it is unlawful for a holder of a retailer's permit of any type to acquire, hold, own, or possess an interest of any type in a manufacturer's or wholesaler's permit of any type.
     (b) It is lawful for a holder of a retailer's permit of any type to acquire, hold, own, or possess an interest of any type in a brewer's permit for a brewery that manufactures not more than twenty thousand (20,000) barrels of beer in a calendar year.
SOURCE: IC 7.1-5-9-5; (03)CC136905.1.10. -->     SECTION 10. IC 7.1-5-9-5 IS REPEALED [EFFECTIVE JULY 1, 2003]
    (Reference is to EHB 1369 as printed April 4, 2003.)




Conference Committee Report

on

Engrossed House Bill 1369



Text Box

S

igned by:


    ____________________________    ____________________________
    Representative Kuzman Senator Server
    Chairperson

    ____________________________    ____________________________
    Representative Alderman Senator Lewis

    House Conferees    Senate Conferees


CC136905/DI 87
2003