CHAPTER 9. MISCELLANEOUS PROHIBITED INTERESTS
IC 7.1-5-9
Chapter 9. Miscellaneous Prohibited Interests
IC 7.1-5-9-1
Commission; prohibited interest
Sec. 1. Commission: Prohibited Interests. It is unlawful for a
commissioner, an officer or employee of the commission, or a
member of a local board, to have an interest, either proprietory or by
means of a loan, mortgage, or lien, or in any other manner, or to own
stock in a corporation which has an interest, in the premises where
alcoholic beverages are manufactured or sold, or in a business wholly
or partially devoted to the manufacture, sale, transportation or
storage of alcoholic beverages. The prohibition contained in this
section shall not apply to an expert or professional employee
employed by the commission only for a special undertaking. A
person who violates a provision of this section also shall be
dismissed as provided in this title.
(Formerly: Acts 1973, P.L.55, SEC.1.)
IC 7.1-5-9-2
Brewer's or vintner's interest in wholesaler's permit prohibited;
financial assistance
Sec. 2. (a) Except as provided in subsection (c), it is unlawful for
the holder of a brewer's permit or for a brewer located outside
Indiana that meets the requirements of IC 7.1-3-2-4 and IC 7.1-3-2-5
to hold, acquire, possess, own, or control, or to have an interest,
claim, or title, in or to an establishment, company, or corporation
holding or applying for a beer wholesaler's permit under this title, or
in its business.
(b) Except as provided in subsection (c), it is unlawful for the
holder of a vintner's permit or for a vintner located outside Indiana
to hold, acquire, possess, own, or control, or to have an interest,
claim, or title in or to, an establishment, company, or corporation
holding or applying for a wine wholesaler's permit under this title, or
in its business.
(c) A brewer covered by subsection (a) may provide financial
assistance to the holder of a beer wholesaler's permit. A vintner
covered by subsection (b) may provide financial assistance to the
holder of the wine wholesaler's permit. The following conditions
apply to the provision of financial assistance under this subsection:
(1) The brewer may not require that the holder of the beer
wholesaler's permit, and the vintner may not require that the
holder of a wine wholesaler's permit, accept the financial
assistance.
(2) The financial assistance may be unsecured or secured.
(3) If the financial assistance is secured, it may be secured only
by a security interest in the following property of the holder of
the wholesaler's permit:
(A) Inventory of the products of the brewer or vintner.
(B) Premises or equipment, if the premises or equipment is
used in the business of the holder of the wholesaler's permit.
(4) If the financial assistance is secured, the value of the
property in which the security interest lies may not substantially
exceed the debt secured.
(5) Except as provided in IC 7.1-3-2-9, the brewer or the vintner
may not use financial assistance to acquire complete or partial
control of the business of the holder of the wholesaler's permit.
(6) Except as provided in IC 7.1-3-2-9, the brewer or vintner
must make available to all wholesalers (of any of its products)
any assistance that it offers to any one (1) wholesaler of any of
its products. This assistance must be provided on substantially
identical terms. The brewer or vintner may not discriminate
among wholesalers of any of its products in the enforcement of
any terms related to assistance under this section.
(7) The brewer or vintner must report to the commission any
assistance that it offers to a wholesaler under this section. It
must make this report promptly after the assistance is offered.
(Formerly: Acts 1973, P.L.55, SEC.1.) As amended by P.L.112-1987,
SEC.9; P.L.72-1997, SEC.4.
IC 7.1-5-9-3
Beer permittee's interest limited
Sec. 3. (a) This section applies to a brewer that manufactures
more than twenty thousand (20,000) barrels of beer in a calendar
year.
(b) It is unlawful for the holder of a brewer's or beer wholesaler's
permit to have an interest in a liquor permit of any type under this
title.
(Formerly: Acts 1973, P.L.55, SEC.1.) As amended by P.L.88-1993,
SEC.6.
IC 7.1-5-9-4
Interest in another permit prohibited
Sec. 4. Except as provided in IC 7.1-3-3-4, an applicant for a beer
wholesaler's permit shall have no interest in the following:
(1) A permit to manufacture or to sell at retail alcoholic
beverages of any kind.
(2) Any other permit to wholesale alcoholic beverages.
(3) Through stock ownership or otherwise, a partnership,
limited liability company, or corporation that holds:
(A) a permit to manufacture or to sell at retail alcoholic
beverages of any kind; or
(B) any other permit to wholesale alcoholic beverages of any
kind.
(Formerly: Acts 1973, P.L.55, SEC.1.) As amended by P.L.51-1994,
SEC.14; P.L.204-2001, SEC.59.
IC 7.1-5-9-5
Repealed
(Repealed by P.L.72-2004, SEC.18.)
IC 7.1-5-9-6
Liquor permittee's interests limited
Sec. 6. Liquor Permittee's Interests Limited. It is unlawful for the
holder of a distiller's, rectifier's, or liquor wholesaler's permit to have
an interest in a beer permit of any type under this title.
(Formerly: Acts 1973, P.L.55, SEC.1.)
IC 7.1-5-9-7
Distillers and rectifiers; prohibited interests
Sec. 7. Distillers and Rectifiers: Prohibited Interests. It is unlawful
for the holder of a distiller's or rectifier's permit to own, acquire,
possess or cause to be transferred to him, shares of stock of a
corporation that holds an Indiana permit to sell alcoholic beverages
at retail, or in a permit to sell at retail in this state, or to own or
acquire an interest in the business being conducted under the permit,
or in or to shares of stock in a corporation that owns a permit to sell
at retail.
(Formerly: Acts 1973, P.L.55, SEC.1.)
IC 7.1-5-9-8
Certain interests prohibited
Sec. 8. Certain Interests Prohibited. The holder of a distiller's
permit or rectifier's permit may not own, acquire, or possess a permit
to sell liquor at wholesale. A distiller or rectifier may not have an
interest in the business of a permittee who is authorized to sell beer,
liquor, or wine at wholesale or retail.
(Formerly: Acts 1973, P.L.55, SEC.1.)
IC 7.1-5-9-9
Wholesaler's interests limited
Sec. 9. Wholesaler's Interests Limited. It is unlawful for a person
who has an interest in a beer wholesaler's permit to acquire, hold,
own, or possess an interest of any type in a beer dealer's or retailer's
permit. It is unlawful, also, for a person who has an interest in a
liquor wholesaler's permit to acquire, hold, own, or possess an
interest of any type in a liquor dealer's or retailer's permit.
(Formerly: Acts 1973, P.L.55, SEC.1.)
IC 7.1-5-9-10
Retailer owning interest in another permit prohibited;
microbrewery exception
Sec. 10. (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.
(Formerly: Acts 1973, P.L.55, SEC.1.) As amended by P.L.72-2004,
SEC.17.
IC 7.1-5-9-11
Repealed
(Repealed by Acts 1978, P.L.2, SEC.727.)
IC 7.1-5-9-12
Use of another's warehouse prohibited
Sec. 12. Use of Another's Warehouse Prohibited. It is unlawful for
a holder of a brewer's permit, beer or liquor wholesaler's permit, or
a beer or liquor retailer's permit, to own, operate, maintain on his
own account, patronize, use, or employ a warehouse, storage, or
depot, owned or operated by another person for the storage or
keeping of an alcoholic beverage except at the plant or premises
which is covered by his permit.
(Formerly: Acts 1973, P.L.55, SEC.1.)
IC 7.1-5-9-13
Certain interests prohibited
Sec. 13. Certain Interests Prohibited. The proprietor of a drug
store, a corporation holding a distiller's or brewer's permit or a
wholesaler's permit or a permit to retail or deal in alcoholic
beverages, a wholesale drug company, and a person who is the
proprietor of a wholesale drug company may not own or control or
participate in the permit of a package liquor store, or in its business,
or in its establishment.
(Formerly: Acts 1973, P.L.55, SEC.1.)
IC 7.1-5-9-14
Sale to nonpermittee prohibited
Sec. 14. It is unlawful for the holder of a brewer's, distiller's,
rectifier's, or a wholesaler's permit of any type to sell an alcoholic
beverage to a person who does not hold an appropriate permit under
this title. However, this section shall not apply to the sale of an
alcoholic beverage to a consumer or employee as expressly
authorized in this title.
(Formerly: Acts 1973, P.L.55, SEC.1.) As amended by P.L.94-2008,
SEC.57.
IC 7.1-5-9-15
Manager's questionnaire; violations; filing
Sec. 15. (a) The commission shall establish a manager's
questionnaire for managers of licensed premises for the sale of
alcoholic beverages.
(b) It is unlawful for a person to:
(1) manage; or
(2) buy when the transfer of the permit is contingent upon terms
of a contract or an agreement;
a licensed premises for the sale of alcoholic beverages, unless the
person has filed a valid manager's questionnaire with the
commission.
(c) The filing of a manager's questionnaire under this section:
(1) is in addition to other requirements for managers under this
title; and
(2) does not exempt the filer from IC 7.1-5-6-3.
As added by P.L.52-1992, SEC.11.