Introduced Version
HOUSE BILL No. 1250
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 7.1-1-3; IC 7.1-3; IC 7.1-5-6-3;
IC 7.1-5-10-23.
Synopsis: Alcohol beverage matters. Defines "grocery store" for
purposes of the alcohol and tobacco law. Allows the alcohol and
tobacco commission (commission) to grant or transfer a beer dealer's
permit for a beer dealer who held a permit before July 1, 2006, and
does not qualify as a grocery store. Requires a person to obtain an
employee's permit from the commission before the person may act as
a sales clerk to ring up or otherwise record alcoholic beverage sales in
drug stores or grocery stores. Makes it unlawful for a purchaser or
anyone else who is not a clerk to ring up alcoholic beverage sales in a
package liquor, grocery, or drug store or for the store proprietor to
allow that kind of activity. Requires a beer, liquor, or wine dealer to
sell alcoholic beverages in a designated area separated from the sale of
nonalcoholic retail merchandise on the dealer's licensed premises.
Prohibits a minor from entering a designated area without a parent or
guardian who is at least 21 years of age. Requires an employee, as part
of the employee's job responsibilities, to ensure that minors do not
enter the designated area without a parent or guardian. Allows the
commission to grant one beer dealer's permit and one liquor dealer's
permit in an incorporated city, town, or unincorporated town for each
4,500 persons. (Current law allows the commission to grant one beer
dealer's permit and one liquor dealer's permit for each 1,500 persons.)
Allows the commission to renew or transfer a beer dealer's or liquor
dealer's permit for a beer dealer or liquor dealer who held a permit
before July 1, 2006, and does not qualify for a permit as a result of the
quota requirement. Makes conforming changes.
Effective: July 1, 2006.
Messer
January 10, 2006, read first time and referred to Committee on Public Policy and Veterans
Affairs.
Introduced
Second Regular Session 114th General Assembly (2006)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
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HOUSE BILL No. 1250
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:
SOURCE: IC 7.1-1-3-18.5; (06)IN1250.1.1. -->
SECTION 1. IC 7.1-1-3-18.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2006]: Sec. 18.5. (a) "Grocery store" means
a store or a part of a store that:
(1) has the primary North American Industry Classification
System (NAICS) classification 445110 or 452910; and
(2) is primarily engaged in the retail sale of a general food
line, which may include:
(A) canned and frozen foods;
(B) dry goods, including tea, coffee, sugar, and flour;
(C) fresh fruits and vegetables; and
(D) fresh and prepared meats.
(b) The term does not include a store that has less than two
hundred fifty thousand dollars ($250,000) in annual gross sales of
food, excluding the following:
(1) Candy, confectionaries, and chewing gum.
(2) Alcoholic beverages.
(3) Cocktail mixers.
(4) Soft drinks, sodas, and other similar beverages.
(5) Medicines, tonics, vitamins, and other dietary
supplements.
(6) Water (except natural spring water), mineral water,
carbonated water, and ice.
(7) Pet food.
(8) Food furnished, prepared, or served for consumption at a
location, or on equipment, provided by the retail merchant.
(9) Meals served by a retail merchant off the merchant's
premises.
(10) Food sold by a retail merchant who ordinarily bags,
wraps, or packages the food for immediate consumption on or
near the merchant's premises, including food sold on a "take
out" or "to go" basis.
(11) Food sold through a vending machine.
(12) Tobacco products.
SOURCE: IC 7.1-1-3-40.5; (06)IN1250.1.2. -->
SECTION 2. IC 7.1-1-3-40.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2006]: Sec. 40.5. "Sales clerk" means a
person who:
(1) rings up; or
(2) otherwise records;
an alcoholic beverage sale in the course of the person's employment
in a dealer establishment.
SOURCE: IC 7.1-3-5-3; (06)IN1250.1.3. -->
SECTION 3. IC 7.1-3-5-3 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2006]: Sec. 3. (a) The holder of a
beer dealer's permit shall be entitled to purchase beer for sale under the
permit only from a permittee entitled to sell to a beer dealer under this
title.
(b) A beer dealer shall be entitled to possess beer and sell it at retail
to a customer in permissible containers only.
(c) A beer dealer may not sell beer by the drink nor for consumption
on the licensed premises nor shall a beer dealer allow it to be consumed
on the licensed premises.
(d) Except as provided in subsection (e), a beer dealer shall be
entitled to sell beer to a customer
in a designated area separated
from the area where nonalcoholic retail merchandise is sold, and
to
deliver it in permissible containers to the customer on the licensed
premises, or to the customer's residence or office.
A minor may not
enter the designated area without a parent or guardian who is at
least twenty-one (21) years of age. The designated area shall be
monitored by an employee who, as part of the employee's job
responsibilities, shall ensure that a minor does not enter the
designated area without a parent or guardian who is at least
twenty-one (21) years of age. A beer dealer shall not be entitled to sell
and deliver beer on the street or at the curb outside the licensed
premises, nor shall a beer dealer be entitled to sell beer at a place other
than the licensed premises. A beer dealer shall not be entitled to sell
beer and deliver beer for carry-out, or for delivery to a customer's
residence or office, in a quantity that exceeds eight hundred sixty-four
(864) ounces in a single transaction. However, notwithstanding
IC 7.1-5-10-11, a beer dealer who is licensed pursuant to IC 7.1-3-10-4
shall be entitled to sell and deliver warm or cold beer for carry-out, or
for delivery to a customer's residence, office, or a designated location
in barrels or other commercial containers that do not exceed two
thousand sixteen (2,016) ounces per container. 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) Unless a beer dealer is a grocery store or drug store, a beer
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 beer 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 patron who is outside the licensed premises.
SOURCE: IC 7.1-3-10-7; (06)IN1250.1.4. -->
SECTION 4. IC 7.1-3-10-7 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2006]: Sec. 7. (a) The holder of a
liquor dealer's permit shall be entitled to purchase liquor only from a
permittee entitled to sell to a liquor dealer under this title.
(b) A liquor dealer shall be entitled to possess liquor and sell it at
retail in its original package,
in a designated area separated from the
area where nonalcoholic retail merchandise is sold, to a customer
only for consumption off the licensed premises.
A minor may not
enter the designated area without a parent or guardian who is at
least twenty-one (21) years of age. The designated area shall be
monitored by an employee who, as part of the employee's job
responsibilities, shall ensure that a minor does not enter the
designated area without a parent or guardian who is at least
twenty-one (21) years of age.
(c) A liquor dealer may deliver liquor only in permissible containers
to a customer's residence or office in a quantity that does not exceed
twelve (12) quarts at any one (1) time. However, a liquor dealer who
is licensed under IC 7.1-3-10-4 may deliver liquor 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.
(d) A liquor 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. However, a liquor dealer that is
a drug store may sell prescription drugs and health and beauty aids
through a window in the licensed premises to a patron who is outside
the licensed premises.
SOURCE: IC 7.1-3-15-3; (06)IN1250.1.5. -->
SECTION 5. IC 7.1-3-15-3 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2006]: 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,
in a designated area
separated from the area where nonalcoholic retail merchandise is
sold, for consumption off the licensed premises only and not by the
drink.
A minor may not enter the designated area without a parent
or guardian who is at least twenty-one (21) years of age. The
designated area shall be monitored by an employee who, as part of
the employee's job responsibilities, shall ensure that a minor does
not enter the designated area without a parent or guardian who is
at least twenty-one (21) years of age.
(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
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.
SOURCE: IC 7.1-3-18-9; (06)IN1250.1.6. -->
SECTION 6. IC 7.1-3-18-9 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2006]: Sec. 9. (a) The commission
may issue an employee's permit to a person who desires to act as:
(1) a sales clerk in a:
(A) drugstore;
(B) grocery store; or
(C) package liquor store; or as
(2) a bartender, waiter, waitress, or manager in a retail
establishment. excepting dining car and boat employees.
(b) A permit authorized by this section is conditioned upon the
compliance by the holder with reasonable rules relating to the permit
which the commission may prescribe from time to time.
(c) A permit issued under this section entitles its holder to work for
any lawful employer. However, a person may work without an
employee's permit for thirty (30) days from the date shown on a receipt
for a cashier's check or money order payable to the commission for that
person's employee's permit application.
(d) A person who, for a package liquor store or retail establishment,
is:
(1) the sole proprietor;
(2) a partner, a general partner, or a limited partner in a
partnership or limited partnership that owns the business
establishment;
(3) a member of a limited liability company that owns the
business establishment; or
(4) a stockholder in a corporation that owns the business
establishment;
is not required to obtain an employee's permit in order to perform any
of the acts listed in subsection (a).
(e) An applicant may declare on the application form that the
applicant will use the employee's permit only to perform volunteer
service that benefits a nonprofit organization. It is unlawful for an
applicant who makes a declaration under this subsection to use an
employee's permit for any purpose other than to perform volunteer
service that benefits a nonprofit organization.
(f) An applicant is not entitled to an employee's permit if:
(1) the applicant is serving a sentence for a conviction for
operating while intoxicated, including any term of probation or
parole;
(2) the applicant has more than one (1) but less than three (3)
unrelated convictions for operating while intoxicated and less
than two (2) years have elapsed after the applicant completed the
applicant's sentence for a conviction for operating while
intoxicated, including any term of probation or parole; or
(3) the applicant has at least three (3) unrelated convictions for
operating while intoxicated.
(g) The commission shall revoke a permit issued to an employee
under this section if:
(1) the employee is convicted of a Class B misdemeanor for
violating IC 7.1-5-10-15(a); or
(2) the employee becomes ineligible for the issuance of an
employee's permit under subsection (f).
The commission may revoke a permit issued to an employee under this
section for any violation of this title or the rules adopted by the
commission.
(h) This section does not apply to a dining car, boat, or airline
employee.
SOURCE: IC 7.1-3-22-4; (06)IN1250.1.7. -->
SECTION 7. IC 7.1-3-22-4 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2006]: Sec. 4. Dealers' Permits
Limited. (a) The commission may grant only one (1) beer dealer's
permit and one (1) liquor dealer's permit in an incorporated city, town,
or unincorporated town for each one thousand five hundred (1,500)
four thousand five hundred (4,500) persons, or fraction thereof,
within the incorporated city, town, or unincorporated town.
(b) Notwithstanding subsection (a), the commission may renew
or transfer a beer dealer's or liquor dealer's permit for a beer
dealer or liquor dealer who:
(1) held a permit before July 1, 2006; and
(2) does not qualify for a permit under the quota restrictions
in subsection (a).
SOURCE: IC 7.1-5-6-3; (06)IN1250.1.8. -->
SECTION 8. IC 7.1-5-6-3 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2006]: Sec. 3. (a) It is unlawful for
a person to act
as a clerk in a package liquor store, or as a bartender,
waiter, waitress, or manager for a retailer permittee in a position that
is listed in IC 7.1-3-18-9(a) unless that person has applied for and
been issued
the appropriate an employee's permit.
This section does
not apply to dining car or boat employees or to a person described in
IC 7.1-3-18-9(d).
(b) It is a defense to a charge under this section if, within thirty (30)
days after being cited by the commission, the person who was cited
produces evidence that the appropriate permit was issued by the
commission on the date of the citation.
(c) It is a defense to a charge under this section for a new applicant
for a permit if, within thirty (30) days after being cited by the
commission, the new applicant who was cited produces a receipt for a
cashier's check or money order showing that an application for the
appropriate permit was applied for on the date of the citation.
(d) It is a defense to a charge under this section that the person:
(1) acted as a dining car, boat, or airline employee; or
(2) is a person described in IC 7.1-3-18-9(d).
SOURCE: IC 7.1-5-10-23; (06)IN1250.1.9. -->
SECTION 9. IC 7.1-5-10-23 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2006]: Sec. 23. (a) It is unlawful for a person who is the
proprietor of a package liquor store, drug store, or grocery store
to allow a purchaser of alcoholic beverages, or any other person
who is not a sales clerk, to ring up or otherwise record an alcoholic
beverage sale.
(b) It is unlawful for a purchaser of alcoholic beverages, or any
other person who is not a sales clerk, to ring up or otherwise
record an alcoholic beverage sale in a:
(1) drug store;
(2) grocery store; or
(3) package liquor store.
SOURCE: ; (06)IN1250.1.10. -->
SECTION 10. [EFFECTIVE JULY 1, 2006]
Notwithstanding
IC 7.1-1-3-18.5, as added by this act, the commission may renew or
transfer ownership of a beer dealer's permit for a beer dealer who:
(1) held a permit before July 1, 2006; and
(2) does not qualify for a permit as a grocery store under the
definition established by IC 7.1-1-3-18.5, as added by this act.