The Evolution of

Indianas Alcohol Law

Alcohol Code Revision Commission
August 22, 2017
Presented by KC Norwalk, Legislative Services Agency
Areas

Restrictions on People
Time and Day Restrictions
Location Restrictions
Dry v. Wet
Establishment Restrictions
Licensing
Beer
Wine
Hard Alcohol
Criminal Acts
Conflicts/Inconsistencies in Indianas Alcohol Law
Restrictions on People

INDIANS
1790 Northwest Territory prohibited
furnishing liquor to Indians
One of the first territorial laws

Image source:
http://www.loc.gov/pictures/item/955227
99/resource/
 Restrictions on People

Military
1810 Militia officers forbidden from
buying liquor for enlisted men
1945 Sale of alcohol to minor
soldiers is permitted

Source:
http://www.loc.gov/pictures/item/20086617
45/resource/
Restrictions on People

Minors
1816 Sales to minors is prohibited
Minor defined as under 16 years of age
1832 Minor defined as under 18
years of age
1934 Drinking age raised to 21 years
of age
Post-prohibition
Restrictions on People

Habitual Drunkards
1859 Alcohol sales to habitual
drunkards are prohibited
1875- Alcohol sales to habitual
drunkards are prohibited after notice
in writing by the persons wife, child,
parent or sibling
 Restrictions on People

2010 Each alcohol purchaser has to

provide proof of age to purchase alcohol
(SB 75-2010)
It is a class B misdemeanor if the alcohol
permittee fails to require an identification.
A defense is the purchaser appeared to be
at least 50 years of age
2011 - Alcohol purchaser has to provide
identification if the person appears to be
under 40 years of age (SB 78-2011)

Image source:
https://c2.staticflickr.com/4/3432/3348033929_332d73
abc1.jpg
Time and Day Restrictions

Sundays
1816 Sales on Sundays are
prohibited ($3 fine)
1933 No operating hour restrictions
Post-prohibition
1935 No Sunday alcohol sales
Sunday Sales Bills: HB 1399 (2016),
HB 1026 (2015), HB 1022 (2014)
 Time and Day Restrictions

Holidays
1859 Sales prohibited on election
day
1873 Sales prohibited on public
holidays after 9 PM (Baxter Law)
1935 Sales prohibited on election
day, Christmas and New Years day
(post-prohibition)

Image source:
https://commons.wikimedia.org/wiki/File:Voting_Unit
ed_States.jpg
Time and Day Restrictions

Holidays
1948 Alcohol sales banned the day after
holidays
2006 Extended sales if New Years Eve
falls on a Sunday
2010 Alcohol sales permitted on
election day
2008 Carryout sales allowed on New
Years Day
2015 Alcohol sales allowed on
Christmas
Time and Day Restrictions

Hours of Operation
1873 Closing time fixed at 9 PM
1875 Closing time changed to 11 PM
1885 Indiana Supreme Court upheld
the 11 PM closing time
Proper exercise of police power
1933 No closing time (post-
prohibition)

Image source:
https://c2.staticflickr.com/4/3408/3228663162_72d4084754.jpg
Time and Day Restrictions

Hours of Operation
1935 Sales allowed 6 AM to 1 AM
1945 Sales reduced from 7 AM to
midnight
Presently Closing time is 3 AM (IC
7.1-3-1-14)
2007 Governor Daniels did not
enforce closing time when daylight
savings occurred during the NCAA
tournament in Indianapolis
Location Restrictions

Prohibited Sales
1805 Within 30 miles of any council
of Indians
1831 Within one mile of a religious
meeting
1836 Within 2 miles of a religious
meeting
 Location Restrictions

Grocery Stores
1994 Grocery stores with
pharmacies begin selling liquor
Grocery stores initially sold liquor in
separated rooms and then stopped doing
so

Image source: https://upload.wikimedia.org/wikipedia/commons/b/b9/Storeisle.png

Information source: West, Evan. Spirited Debate. Indianapolis Monthly, Feb. 2006, pp. 82-92.
 Location Restrictions

Drug Store
1933 Pharmacists may sell alcohol
by prescription
1935 Drug stores may sell liquor
1953 Drug stores may sell beer

Image source:
http://www.ipharmd.net/images/golden_rx_pharma
cy_symbol_mortar_pestle.png
 Location Restrictions

State Fair
1947 Alcohol banned at the state
fair
2015 Alcohol allowed at the state
fair

Image source:
https://c1.staticflickr.com/3/2650/397020
0070_abe79bd8af_b.jpg
Location Restrictions

State Parks
1989 Alcohol prohibited at the
Indiana Dunes State Park
2014 DNR is allowed to permit, in a
lease or contract, the sale of alcohol
at state park inns.
2016 DNR may apply for 3 way
licenses

Image source:
https://secure.in.gov/dnr/parklake/5901.htm
 Location Restrictions

Indianapolis Motor Speedway

2016 For the 2016 Indianapolis 500,
IMS is permitted to sell carryout
commemorative bottles of alcohol

Image source: www.simple.Wikipedia.oeg

Dry v. Wet

Early Statehood
1826 New Harmony declared
prohibition by an administrative edict
1849 10 counties dry by majority
petitions
1850 A new state constitution was
voted on and a prohibition failed 78
to 44

Image source:
https://upload.wikimedia.org/wikipedia/commons/thumb/c/c4/Indian
a-StateSeal.svg/2000px-Indiana-StateSeal.svg.png
Dry v. Wet

Indianas First Prohibition

1855 Statewide prohibition
enacted.
1st Prohibition Repealed
December, 1855, in Herman v. State,
8 Ind. 545, the Indiana Supreme
Court repealed prohibition.

Image source:
https://upload.wikimedia.org/wikipedia/commons/d/d5/5
_Prohibition_Disposal(9).jpg
Dry v. Wet

Post 1st Prohibition

1905 Townships could vote to go dry
1908 Local option allows counties
could vote to go dry by a petition
signed by 20% of the voters
17 counties dry
1909 42 counties dry
1910 70 counties dry
 Dry v. Wet

Post 1st Prohibition (cont.)

1911 County option changed to
township option
All counties had to revote
27 counties remained dry
1915 31 counties dry
1917 2nd Statewide prohibition
passes
Senate vote: 38 to 11
House vote: 70 to 28

Image source:
https://upload.wikimedia.org/wikipedia/commo
ns/f/f4/Wctu_logo.png
Dry v. Wet

National Prohibition
1919 Indiana ratifies the National
Prohibition Amendment
1920 18th Amendment to
Constitution becomes effective
creating national prohibition

Image source:
https://c1.staticflickr.com/2/1525/23789036064_7a506c8e3
7_z.jpg
Dry v. Wet

National Prohibition Repealed

1933 Indiana referendum to
repeal prohibition passes
554,129 to 311,464.
The 21st Amendment repealing
national prohibition effective
December 6, 1933

Image source:
https://c2.staticflickr.com/8/7120/6947434068
_cfa0f9cbaa_b.jpg
Licensing

Early Statehood
1816 County commissioners could 1840 If a majority of householders
grant licenses based on 12 property of a town or township remonstrated
owners attesting that a potential against a license, the county board
licensee was of good moral character would deny a license
and the tavern would be convenient
for travelers
1818 The legislature allowed county
commissioners to grant licenses. Up
until 1832, the legislature went back
and forth allowing courts and then
commissioners to grant licenses 3
times.
Licensing

Post 1st Prohibition Post National Prohibition

1875 1-way (beer), 2-way (beer 1933 3 tier system implemented
and wine) and 3-way (beer, wine, Alcohol Beverage Commission
and liquor) permits are separated Created (bipartisan regulatory
commission)
Only males over 21 can obtain a
license 1941 Stout Act Local liquor
boards established.
County boards issue licenses
1-way and 2-way licenses are
$50, and 3-way licenses are $100
Cities may add $100 to licenses
fees
Licensing

Post National Prohibition 1965 Local boards given

(cont.) authority to grant permits for
1945 Law passed allowing hotels and restaurants outside
wholesaler permits to be town or city limits
withdrawn without cause. 2001 Alcohol Beverage
Commission becomes the
Alcohol Tobacco Commission
(HB 1585)
Establishment Restrictions
1819 Taverns are required to have
accommodations, rooms to rent
1859 Licensing is allowed for
saloons, taverns that do not sell food
1918 Bars must be able to be seen
into from the street
-Bars must be on the first floor or
basement of building and only be on
one floor
1935 A patron cannot walk around a
bar with drink, must be seated
1941 Females bartenders are
prohibited
Exceptions are women who owned a
bar or who are the wife of the owner
1947 Taverns must serve food
1967 Prohibition on female
bartenders is lifted
1991 Bars in restaurants are
permitted to have a barriers to
prevent access by underage people.
 Beer
STATEHOOD
1816 Two breweries in Indiana at
the time of statehood.
One was in Richmond, along the National
Road
A second brewery was established in
1814 in New Harmony
1859 Beer and wine were
considered intoxicating liquor by the
Legislature

Image source:
https://pixabay.com/p-
845306/?no_redirect
Beer
1908 70 counties went dry and dozens
of breweries went out of business
1920 - Prohibition
Post National Prohibition
1933 - The Cullen-Harrison Act, enacted by the US
Congress, legalized the sale of beer with an alcohol
content of 3.2% by weight and wine with a similar
alcohol content
- Each state was required to pass similar legislation
to legalize the sale of low alcohol beer and wine
 Beer

Indiana permitted the sale of

low alcohol beer and required
it to be bottled
Low alcohol beer was allowed
to be sold in restaurants,
hotels, dining cars and private
clubs for consumption with
food or for off-premises
consumption

Image source:https://upload.wikimedia.org/wikipedia/commons/a/a5/Sampling_beers_in_style_at_Spinnakers.jpg
Beer

1935 Indiana Beer Control Act 1939 Indianapolis Brewing

prohibits Indiana wholesalers Company v. Liquor Control
from importing any beer Commn, 305 US 391 (1939).
which is not their absolute
property
Beer

In 1875 there were 88 breweries in

Indiana. In 1975, there were only 2;
Falstaff in Forty Wayne and Heilemans
Sterling in Evansville

Image source:
https://upload.wikimedia.org/wikipedia/comm
ons/b/b8/Sign_for_Falstaff_Beer.JPG
Beer

Exclusive Sales Territories

Early 1970s Exclusive sales
territories for beer wholesalers
emerged.
1979 The ABC ruled beer
distributors cannot set up exclusive
sales territories
Beer

Exclusive Sales Territories (cont.)

1989 Beer Baron bill passes the
legislature. It would have reversed
the 1979 ABC rule banning exclusive
sales territories. Governor Bayh
vetoed the bill.
2002 The ABCs 1979 rule banning
exclusive sales territories sunsets.

Image source:
https://c2.staticflic
kr.com/2/1069/1403
816845_c30075d224
_b.jpg
Beer

Number of Microbreweries in Indiana

140
Microbreweries
120
1990 The Broad Ripple Brew pub
opens and becomes Indianas first 100
microbrewery
80
2000 23 microbreweries in Indiana
60
2010 37 microbreweries in Indiana
40
2016 more than 125 microbreweries
20
in Indiana
0
1990 2000 2010 2016
Number of Microbreweries in Indiana
Beer

Microbreweries (cont.)
2010 Breweries may sell up to 4.5
gallons to go on Sunday (SB 75-2010)
2011 The 20,000 barrel per year
production limit raised to 30,000
barrels a year

Image source:
https://upload.wikimedia.org/wikipedia
/commons/a/a7/Three_Floyds_Distiller
y.JPG
Beer

Microbreweries (cont.)
2012 HB 1054-2012:
The 30,000 barrel production limit for
small breweries does not apply to the
manufacture of beer for sale or
distribution outside Indiana
Small breweries may sell the brewerys
beer on Sunday at a location in the city
where the beer was manufactured
2015 Barrel limits for small breweries
raised from 30,000 to 90,000 barrels of
beer (SB 297-2015)
Hard Alcohol

Artisan Distillers
2013 HB 1293
Creates artisan distillers permit to
commercially manufacture not more
than 10,000 gallons of liquor in a year
Allows artisan distillers to:
Manufacture, blend, bottle, store,
transport and sell liquor to a wholesaler
Serve samples and sell liquor to
consumers
Hold interest in farm winery permits or
microbrewery permits
Image source:
https://upload.wikimedia.org/wik
ipedia/commons/0/06/Catoctin_c
reek_still.jpg
Wine

Farm Wineries
1971 Farm Winery Act allow small
wineries to operate tasting rooms
and sell to consumers and retailers if
using wine produced in Indiana
1989 Wine Grape Development Act
An industry council was created to
address wine manufacturing and to
promote Indiana wines.
A $.05 per gallon tax on all wine was
imposed to fund program
Image source:
https://static.pexels.com/photos/107556/pexe
ls-photo-107556.jpeg
Wine

Farm Wineries (cont.)

1999 Farm wineries allowed to produce
any type of wine
Winery production increased from 100,000
gallons a year to 500,000 gallons a year
2006 HB 1016:
Farm wineries allowed to sell wine at
farmers markets and at 3 locations apart
from the winery
Farm wineries allowed to sell brandy at
retail
Wine

Farm Wineries (cont.)

2008 Limit on wine production
increased from 500,000 gallons to
1,000,000 gallons (SB 107-2008)
2016 SB 177 allowed the refilling of
a bottle or container with a farm
winery product
Wine

Out of state wineries

1998 Wine sales on the internet from an
out of state seller to Indiana consumer
are prohibited (P.L. 128-1998)
Bridenbaugh v. Freeman Wilson, 227 F.3d
848 (2000)
2005 Granholm v. Heald, 544 US 460
(2005)

Image source: http://www.publicdomainpictures.net/pictures/10000/velka/1-

1235483136O5OD.jpg
Wine

Out of state wineries (cont.)

2006 - A wine manufacturer outside of
Indiana must obtain a direct wine sellers
permit to sell wine directly to someone in
Indiana (HB 1016-2006)
Required face to face transaction at sellers
place of business
Baude v. Heath, 538 F3d. 608 (7th Cir.
2008), held Indianas face-to-face
requirement did not violate the dormant
commerce clause because the states
interests in revenue collection and in the
prevention of underage drinking
outweighed any incidental burden the law
might have on interstate commerce.
Wine

Out of state wineries (cont.)

2011 HB 1132 allowed a direct wine
seller to ship directly to a consumer in
Indiana wine manufactured, produced or
bottled by the seller
2015 SB 113 reversed many
requirements from HB 1016-2006
including removal of face to face
transaction at the sellers place of
business requirement
 Crimes

Drunk Driving
1843 First drunk driving law; applies to
stage coach drivers
1923 Motor vehicle drunk driving;
repeat offenders could be felonies
1967 Blood alcohol levels were
evidence of drunk driving (.15% bac)
1983 BAC lowered to .10%
2001 BAC lowered to .08% (HB 1618-
2001)

Image source: https://pixabay.com/p-808790/?no_redirect

Crimes

Alcohol Crimes
1875 Crimes:
Alcohol sales to an intoxicated person
Adulterating wine or liquor
Public Intoxication
Minors prohibited from buying alcohol
1923 Prohibition
violations of prohibition up to 2 years in
prison;
Still owners could be imprisoned for up
to 5 years
 Crimes

Alcohol Crimes
2015 SB 6 made it a Class B infraction
to possess, purchase, sell, offer to sell or
use powdered or crystalline alcoholic
IC 7.1-5-10-10 makes huckstering a Class
C misdemeanor

Image source:
https://upload.wikimedia.org/wikipedia/commons/6/6b/Stea
rins%C3%A4ure_auf_Uhrglas.jpg
Conflicts/Inconsistencies

What Retailers Can Sell Carryout Permittee Sales Allowed Monday

Alcohol On Sundays? to Saturday, but not Sunday (IC
Artisan Distilleries (IC 7.1.-3- 7.1-3-1-14)
27-8)
Breweries (IC 7.1-3-2-7)
Farm Wineries (7.1-3-12-5)
Conflicts/Inconsistencies

What Retailers Can Sell Cold

Beer for Carryout
Liquor Stores (IC 7.1-5-10-11 &
7.1-3-5-3(d))
Upheld in Indiana Petroleum
Marketers and Convenience
Store Assocation v. Cook, 808
F.3d 318 (2015)
Beer Retailer Permit Holders
(Restaurants, Clubs, Hotels)
(IC 7.1-4-6(a))
Image source:
https://c2.staticflickr.com/4/3897/1465
6910679_fe73018c03_b.jpg
Conflicts/Inconsistencies

Minimum Age to Sell or Serve

Alcohol
Liquor stores- 21 years of age
Wait staff at restaurants 19 and
20 years olds who have
completed alcohol server training
(IC 7.1-5-7-13(3))
Grocery store and drug store
employees who are 19 or 20 years
old (IC 7.1-5-7-13(2)) [no server
training required
Conflicts/Inconsistencies

Multiple Locations
-Farm Wineries may have 3 additional
locations from the farm winery (IC 7.1-
3-7.5-3 & IC 7.1-3-12-5(b))
-Statutes on artisan distilleries are
silent about multiple locations (IC 7.1-
3-27)
-Statutes on breweries are silent about
multiple locations (IC 7.1-3-2-7)
Conflicts/Inconsistencies

Delinquent Child Support or

Intentional Violation of Child Support
Order
IC 31-16-12-13 an employee license
may be suspended only for bartenders,
waitresses and managers of a retail
establishment
Does not apply to others who hold this
license, including clerks in liquor stores
and employees at farm wineries.
Resources

Carmichael, Marc, and Feightner, Harold, A History of Alcohol and

Politics in Indiana (Indianapolis: published by authors, 2009).
Feightner, Harold, Archived Collection at the Indiana State Library
Ostender, Bob & Derrick Morris, Hoosier Beer, Tapping into Indiana
Brewing History (Charleston, SC: The History Press, 2011).
West, Evan. Spirited Debate. Indianapolis Monthly, Feb. 2006,
pp, 82-92.
www.hoosierbeerstory.com