CHAPTER 22. QUOTAS ON ISSUANCE OF PERMITS
IC 7.1-3-22
Chapter 22. Quotas on Issuance of Permits
IC 7.1-3-22-1
Brewers' permits limited
Sec. 1. (a) This section applies to a brewer that manufacturesmore than twenty thousand (20,000) barrels of beer in a calendaryear.
(b) The commission may issue and have outstanding only one (1)brewer's permit for each unit of population of this state of onehundred and seventy-five thousand (175,000) or major fractionthereof. The commission, however, shall not issue more than four (4)brewer's permits in the same congressional district.
(Formerly: Acts 1973, P.L.55, SEC.1.) As amended by P.L.88-1993,SEC.3.
IC 7.1-3-22-2
Beer wholesalers' permits limited
Sec. 2. Beer Wholesalers' Permits Limited. The commission mayissue only one (1) beer wholesaler's permit in each county in thisstate. The commission may issue additional beer wholesaler's permitson the basis of one (1) additional permit for each thirty-five thousand(35,000) unit of population, or fraction thereof, in a county whosepopulation exceeds thirty-five thousand (35,000). This section shallnot affect the right of renewal, or successive renewals, of a permit ina county in which the quota is now exceeded.
(Formerly: Acts 1973, P.L.55, SEC.1.)
IC 7.1-3-22-3
Retailers' permits limited
Sec. 3. (a) The commission may grant only one (1) three-waypermit, one (1) two-way permit, and one (1) one-way permit in anincorporated city or town or in an unincorporated town for each onethousand five hundred (1,500) persons, or fraction thereof, residingwithin the incorporated city or town or the unincorporated town. Thecommission shall include liquor retailer permits issued to clubs, butnot those issued to fraternal clubs, in its quota computation when itis considering an application for a new liquor retailer's permit.
(b) This subsection applies when a city or town annexes into thecity or town unincorporated territory where a retailer's permit hasbeen granted before the annexation. The commission may onlyreclassify a retailer's permit for a premises in the formerunincorporated territory as a permit for a premises in an incorporatedcity or town if the permittee has actually conducted a business ofselling alcoholic beverages to customers for consumption on thelicensed premises for two (2) consecutive years. The period of two(2) consecutive years may begin to run either before or after theannexation occurs. However, the following apply when a personapplies for a retailer's permit after notice of an annexation hearing ismade under IC 36-4-3-2.1 and before the annexation occurs: (1) The commission may grant the permit.
(2) The commission may not reclassify the permit as a permitfor a premises in an incorporated city or town.
(3) The permit may be transferred to another person.
(4) The permit may not be transferred to another location.
(Formerly: Acts 1973, P.L.55, SEC.1.) As amended by P.L.245-2001,SEC.1.
IC 7.1-3-22-4
Dealers' permits limited
Sec. 4. (a) The commission may grant:
(1) in an incorporated city or town that has a population of lessthan fifteen thousand one (15,001):
(A) one (1) beer dealer's permit for each two thousand(2,000) persons, or a fraction thereof; or
(B) two (2) beer dealer's permits;
whichever is greater, within the incorporated city or town;
(2) in an incorporated city or town that has a population of morethan fifteen thousand (15,000) but less than eighty thousand(80,000):
(A) one (1) beer dealer's permit for each three thousand fivehundred (3,500) persons, or a fraction thereof; or
(B) eight (8) beer dealer's permits;
whichever is greater, within the incorporated city or town; and
(3) in an incorporated city or town that has a population of atleast eighty thousand (80,000):
(A) one (1) beer dealer's permit for each six thousand(6,000) persons, or a fraction thereof; or
(B) twenty-three (23) beer dealer's permits;
whichever is greater, within the incorporated city or town.
(b) The commission may grant:
(1) in an incorporated city or town that has a population of lessthan fifteen thousand one (15,001):
(A) one (1) liquor dealer's permit for each two thousand(2,000) persons, or a fraction thereof; or
(B) two (2) liquor dealer's permit;
whichever is greater, within the incorporated city or town;
(2) in an incorporated city or town that has a population of morethan fifteen thousand (15,000) but less than eighty thousand(80,000):
(A) one (1) liquor dealer's permit for each three thousandfive hundred (3,500) persons, or a fraction thereof; or
(B) eight (8) liquor dealer's permits;
whichever is greater, within the incorporated city or town; and
(3) in an incorporated city or town that has a population of atleast eighty thousand (80,000):
(A) one (1) liquor dealer's permit for each six thousand(6,000) persons, or a fraction thereof; or
(B) twenty-three (23) liquor dealer's permits;
whichever is greater, within the incorporated city or town. (c) The commission may grant in an area in the county outside anincorporated city or town:
(1) one (1) beer dealer's permit for each two thousand fivehundred (2,500) persons, or a fraction thereof, or two (2) beerdealer's permits, whichever is greater; and
(2) one (1) liquor dealer's permits for each two thousand fivehundred (2,500) persons, or a fraction thereof, or two (2) liquordealer's permits, whichever is greater;
within the area in a county outside an incorporated city or town.
(d) Notwithstanding subsections (a), (b), and (c), the commissionmay renew or transfer a beer dealer's or liquor dealer's permit for abeer dealer or liquor dealer that:
(1) held a permit before July 1, 2008; and
(2) does not qualify for a permit under the quota restrictions setforth in subsection (a), (b), or (c).
(e) Notwithstanding subsection (a) or (c), the commission maygrant not more than two (2) new beer dealer's permits or five percent(5%) of the total beer dealer permits established under the quotarestrictions set forth in subsection (a) or (c), whichever is greater, foreach of the following:
(1) An incorporated city or town that does not qualify for anynew beer dealer's permits under the quota restrictions set forthin subsection (a).
(2) An area in a county outside an incorporated city or town thatdoes not qualify for any new beer dealer's permits under thequota restrictions set forth in subsection (c).
(f) Notwithstanding subsection (b) or (c), the commission maygrant not more than two (2) new liquor dealer's permits or fivepercent (5%) of the total liquor dealer permits established under thequota restrictions set forth in subsection (b) or (c), whichever isgreater, for each of the following:
(1) An incorporated city or town that does not qualify for anynew liquor dealer's permits under the quota restrictions set forthin subsection (b).
(2) An area in a county outside an incorporated city or town thatdoes not qualify for any new liquor dealer's permits under thequota restrictions set forth in subsection (c).
(Formerly: Acts 1973, P.L.55, SEC.1.) As amended by P.L.94-2008,SEC.46.
IC 7.1-3-22-5
Package liquor store dealer's permit; renewal
Sec. 5. (a) The commission may issue only one (1) package liquorstore dealer's permit in an incorporated city or town for each eightthousand (8,000) persons, or fraction thereof, within the incorporatedcity or town.
(b) Notwithstanding subsection (a), the commission may renew apackage liquor store dealer's permit for an applicant who:
(1) held a permit before July 1, 1997; and
(2) does not qualify for a permit under the quota requirements
of subsection (a).
(Formerly: Acts 1973, P.L.55, SEC.1.) As amended by P.L.74-1997,SEC.2.
IC 7.1-3-22-6
Hotels excluded from quota
Sec. 6. Hotels Excluded from Quota. A three-way permit,heretofore or hereafter, issued to a permittee whose licensedpremises consist of a hotel and which premises are located within anincorporated city or town, shall not be included in the quota ofthree-way permits that may be issued lawfully to premises locatedwithin one (1) incorporated city, town, or unincorporated town.
(Formerly: Acts 1973, P.L.55, SEC.1.)
IC 7.1-3-22-7
Existing permits unaffected
Sec. 7. Existing Permits Unaffected. The provisions of IC 1971,7.1-3-22-3.7.1-3-22-5, shall apply only to applications for newpermits and they shall not affect existing permits and transfers ofthem, whether from person to person or location to location, nor shallthey effect any of the limitations, rights and privileges reserved topackage liquor store dealers, or special types or kinds of retailer'spermits, nor the restrictions on the issuance of permits to premisessituated outside an incorporated city or town.
(Formerly: Acts 1973, P.L.55, SEC.1.)
IC 7.1-3-22-8
Quota determination; restrictions; permissible geographic location
Sec. 8. In making quota determinations under this article, thepopulation of a consolidated city is the population of its fire specialservice district, except to the extent that the case of IndianaAlcoholic Beverage Commission v. Baker (1972), 153 Ind.App. 118,286 N.E.2d 174, has determined otherwise. However, the number ofliquor dealer's permits issued to proprietors of package liquor storeslocated in the fire special service district may not exceed the numberissued as of January 1, 1977. For purposes of this article relating tothe permissible geographic location of package liquor store dealerpermit holders, the area of a consolidated city is the area of the entirecounty.
As added by Acts 1980, P.L.8, SEC.66.
IC 7.1-3-22-9
Bidding for permits; fees; rules
Sec. 9. (a) This section applies to any permit that is subject to thequota provisions of this chapter unless that permit is obtained bysale, assignment, or transfer under IC 7.1-3-24.
(b) Whenever a permit to which this chapter applies becomesavailable, the commission shall offer an opportunity to bid for thatpermit to all persons who are qualified to receive that permit andwho have indicated a desire to obtain that permit. The commission
shall receive bids at an auction that it conducts. The highest bidderat the commission's auction who is qualified to receive the permit inall respects (including a determination by the local board that theperson is of good moral character and good repute in the communityin which that person resides) is entitled to receive the permit. Thisbidder shall pay the amount of the bid at the time the permit is issuedas a special fee for initial issuance of the permit.
(c) The special fee for initial issuance of a permit that isprescribed by this section is in addition to any other fees imposed bythis title.
(d) All fee revenues collected under this section are subject toIC 7.1-4-7-4.
(e) The commission shall adopt rules under IC 4-22-2 toimplement this section.
As added by P.L.32-1988, SEC.2.
IC 7.1-3-22-10
City or town purchasing permit issued in excess of quota; returnand retirement of permit
Sec. 10. (a) This section applies to a permit subject to a quotaunder this article that:
(1) exceeds the permissible number of permits under the quota;and
(2) is eligible for renewal by law despite the permit exceedingthe quota.
(b) A city or town may purchase a permit described in subsection(a) from the permit holder. The purchase price must be agreed to by:
(1) the permit holder; and
(2) the executive (as defined in IC 36-1-2-5) of the respectivecity or town, with the approval of the legislative body (asdefined in IC 36-1-2-9) of the respective city or town.
(c) The executive of a city or town that purchases a permit undersubsection (b) shall return the permit to the commission.
(d) The commission shall retire a permit received undersubsection (c) and may not issue to another person a permit receivedunder subsection (c).
As added by P.L.66-1998, SEC.1.