CHAPTER 3. BEER WHOLESALERS' PERMITS

IC 7.1-3-3
    Chapter 3. Beer Wholesalers' Permits

IC 7.1-3-3-1
Application
    Sec. 1. Application. The commission may issue a beerwholesaler's permit to a person who desires to sell beer at wholesaleand who meets the qualifications required by this title. Thecommission may require additional proof, by affidavit or otherwise,that an applicant possesses any or all of the required qualifications.
(Formerly: Acts 1973, P.L.55, SEC.1.)

IC 7.1-3-3-2
Necessary investment
    Sec. 2. Necessary Investment. An applicant for a beer wholesaler'spermit shall have available for investment, capital, in cash orproperty, necessary and useful in his business, exclusively as a beerwholesaler, of at least fifteen thousand dollars ($15,000), exclusiveof motor vehicles. If his application is granted, the investment shallactually be made and proof of it submitted to the commission beforethe applicant shall engage in business as a beer wholesaler. Theprovisions of this section shall not apply to a permittee who held avalid beer wholesaler's permit as of April 2, 1965.
(Formerly: Acts 1973, P.L.55, SEC.1.)

IC 7.1-3-3-3
Building requirements
    Sec. 3. Building Requirements. The building to be occupied by abeer wholesaler shall be owned or leased by him, or storage space init shall be leased to him. If the building or storage space is held bylease, the lease shall be for the full term of the permit, and no otherperson, or stockholder of a corporation, interested in the manufactureof, or in the sale at retail of, alcoholic beverages shall own thebuilding or have any interest in it.
(Formerly: Acts 1973, P.L.55, SEC.1.)

IC 7.1-3-3-4
Premises described in application
    Sec. 4. (a) The premises to be used as a warehouse by an applicantshall be described in the application for the permit. The commissionshall not issue a beer wholesaler's permit to an applicant for anyother warehouse or premises than that described in the application.The commission shall issue only one (1) beer wholesaler's permit toan applicant, but a permittee may be permitted to transfer thepermittee's warehouse to another location within the county that isnot required to be within the corporate limits of an incorporated cityor town, upon application to, and approval of, the commission.
    (b) As used in this subsection, "immediate relative" means thefather, the mother, a brother, a sister, a son, or a daughter of awholesaler permittee. Notwithstanding subsection (a), the

commission, upon the death or legally adjudged mentalincapacitation of a wholesaler permittee, may allow the transfer ofthe wholesaler permit only to an immediate relative of the wholesalerpermittee who concurrently holds a majority share in a validwholesaler permit.
(Formerly: Acts 1973, P.L.55, SEC.1.) As amended by P.L.205-1999,SEC.13; P.L.94-2008, SEC.27.

IC 7.1-3-3-5
Scope of permit
    Sec. 5. (a) The holder of a beer wholesaler's permit may purchaseand import from the primary source of supply, possess, and sell atwholesale, beer and flavored malt beverages manufactured within orwithout this state.
    (b) A beer wholesaler permittee may possess, transport, sell, anddeliver beer to:
        (1) another beer wholesaler authorized by the brewer to sell thebrand purchased;
        (2) an employee; or
        (3) a holder of a beer retailer's permit, beer dealer's permit,temporary beer permit, dining car permit, boat permit, airplanepermit, or supplemental caterer's permit;
located within this state. The sale, transportation, and delivery ofbeer shall be made only from inventory that has been located on thewholesaler's premises before the time of invoicing and delivery.
    (c) The beer wholesaler's bona fide regular employees maypurchase beer from the wholesaler in:
        (1) bottles, cans, or any other type of permissible containers inan amount not to exceed forty-eight (48) pints; or
        (2) one (1) keg;
at any one (1) time.
    (d) The importation, transportation, possession, sale, and deliveryof beer shall be subject to the rules of the commission and subject tothe same restrictions provided in this title for a person holding abrewer's permit.
    (e) The holder of a beer wholesaler's permit may purchase, import,possess, transport, sell, and deliver any commodity listed inIC 7.1-3-10-5, unless prohibited by this title. However, a beerwholesaler may deliver flavored malt beverages only to the holder ofone (1) of the following permits:
        (1) A beer wholesaler or wine wholesaler permit, if thewholesaler is authorized by the primary source of supply to sellthe brand of flavored malt beverage purchased.
        (2) A wine retailer's permit, wine dealer's permit, temporarywine permit, dining car wine permit, boat permit, airplanepermit, or supplemental caterer's permit.
    (f) A beer wholesaler may:
        (1) store beer for an out-of-state brewer described inIC 7.1-3-2-9 and deliver the stored beer to another beerwholesaler that the out-of-state brewer authorizes to sell the

beer;
        (2) perform all necessary accounting and auditing functionsassociated with the services described in subdivision (1); and
        (3) receive a fee from an out-of-state brewer for the servicesdescribed in subdivisions (1) through (2).
(Formerly: Acts 1973, P.L.55, SEC.1; Acts 1973, P.L.60, SEC.3;Acts 1974, P.L.25, SEC.2.) As amended by Acts 1978, P.L.52, SEC.1;P.L.57-1984, SEC.6; P.L.78-1986, SEC.3; P.L.72-1996, SEC.4;P.L.72-1997, SEC.2; P.L.224-2005, SEC.5; P.L.94-2008, SEC.28.

IC 7.1-3-3-6
Renewals
    Sec. 6. Renewals. A permittee who holds a beer wholesaler'spermit and who desires that it be renewed shall file an application forrenewal with the commission not less than thirty (30) days prior tothe expiration of the existing permit. The application shall be madein the same manner that an application for an original permit is made.
(Formerly: Acts 1973, P.L.55, SEC.1.)

IC 7.1-3-3-7
Action of commission on renewals
    Sec. 7. Action of Commission on Renewals. The commissionshall notify the applicant in writing of its determination to grant ordeny the renewal of a beer wholesaler's permit not more than ten (10)days after the filing of the application. The notice may be given bypersonal service upon the applicant or by registered mail, addressedto applicant at the address shown in the application for renewal. Theregistration and deposit of the notice, properly addressed, in the postoffice within the ten (10) day period shall be sufficient when thenotice is given by registered mail.
(Formerly: Acts 1973, P.L.55, SEC.1.)

IC 7.1-3-3-8
Notice of renewal
    Sec. 8. Notice of Renewal. The determination shall be final andconclusive if the notice advises the applicant that his beerwholesaler's permit will be renewed at the expiration of the existingpermit term. Prior to the expiration of the existing permit term, thecommission shall issue a renewal beer wholesaler's permit to theapplicant for the ensuing year. The failure on the part of thecommission to issue the renewal permit prior to the expiration of theexisting permit shall not deprive the applicant of the right to continuein operation pending its issuance.
(Formerly: Acts 1973, P.L.55, SEC.1.)

IC 7.1-3-3-9
Demand for public hearing
    Sec. 9. Demand for Public Hearing. The commission shall state inthe notice to the applicant the reasons for the denial of the renewalof his beer wholesaler's permit if they decide not to renew the permit.

The commission shall grant a public hearing to the applicant on thematter if, within five (5) days after receipt by the applicant of thenotice of denial, he files with the commission a written demand fora public hearing. The hearing shall be held either in the offices of thecommission or in the county seat of the county in which theapplicant's place of business is located after ten (10) days' notice tothe applicant of the time and place of the hearing.
(Formerly: Acts 1973, P.L.55, SEC.1.)

IC 7.1-3-3-10
Conduct of hearing
    Sec. 10. Conduct of Hearing. The hearing on the denial of therenewal shall be conducted by a member of the commission or by aspecial examiner designated by it for this purpose. A deputy attorneygeneral of the state shall represent the State of Indiana at the hearingand he shall present the written and oral evidence in support of thereasons given in the notice of the denial of the renewal of the beerwholesaler's permit. The applicant, in person or by counsel, shallpresent his evidence in support of his right to the renewal and inrebuttal of the evidence presented by the state. The burden shall beupon the state to establish the existence and sufficiency of thereasons for the denial of the renewal of the permit.
(Formerly: Acts 1973, P.L.55, SEC.1.)

IC 7.1-3-3-11
Findings and conclusions; action of commission
    Sec. 11. Findings and Conclusions: Action of Commission. Theperson who conducted the hearing shall make a report of therecommended findings of fact and conclusions to the commissionfollowing the hearing. The commission, upon receipt of the report,by a majority vote of its membership, shall make findings of fact andstate its conclusions affirming or reversing the proposed denial ofrenewal. The commission shall enter its order accordingly and thatorder shall be final and conclusive except as otherwise provided inthis title. The commission shall serve the applicant, personally or byregistered mail, with a copy of the findings of fact, conclusions, andorder.
(Formerly: Acts 1973, P.L.55, SEC.1.)

IC 7.1-3-3-12
Petition for review
    Sec. 12. Petition for Review. The applicant, if the order of thecommission affirms the denial of the renewal of his permit, may file,within ten (10) days following its receipt by him, an action to reviewthe findings, conclusions and order in the Superior Court of MarionCounty, or in the circuit or superior court of the county in which theapplicant has his licensed premises, to set aside and enjoin theenforcement of the order of denial on the grounds that it is unlawful,unreasonable, or insufficient, or that it was obtained by wrongful,fraudulent or other unlawful methods.(Formerly: Acts 1973, P.L.55, SEC.1.)

IC 7.1-3-3-13
Contents of petition
    Sec. 13. Contents of Petition. The petition for review shall beverified by the applicant, or by someone in his behalf havingknowledge of the matters stated in the petition, and may include aprayer that a temporary restraining order be issued against thecommission, temporarily restraining it from enforcing its orderdenying the renewal. The temporary restraining order, if issued, shallbe issued in accordance with the procedures provided in the IndianaRules of Civil Procedure.
(Formerly: Acts 1973, P.L.55, SEC.1.)

IC 7.1-3-3-14
Ad interim operations
    Sec. 14. Ad Interim Operations. The denial of the renewal of thepermit shall not become effective until ten (10) days following thereceipt by the applicant of a copy of the findings of fact, conclusions,and order of the commission affirming the denial if notice of denialof renewal has been given and a public hearing has been demandedas provided in this chapter. The enforcement of the commission'sorder of denial of renewal shall be suspended pending the expirationor dissolution of the temporary restraining order if one has beensought and issued as provided in this chapter. During the period thatthe order of denial is ineffective or suspended, the applicant shall befully authorized and entitled to operate as a beer wholesaler to thesame extent and effect as though a renewal permit had been issuedconcurrently with the expiration of his previous permit, and withoutbeing liable, criminally or civilly, on the ground of operating his beerwholesaler's business without a permit.
(Formerly: Acts 1973, P.L.55, SEC.1.)

IC 7.1-3-3-15
Trial
    Sec. 15. Trial. The court shall give preference to the action forreview in order that, consistent with justice, the matters in issue maybe determined speedily. A change of venue from the county shall notbe granted in an action for review, but either party may apply for andsecure a change of judge under the Indiana Rules of Civil Procedure.The trial of the action shall be by the court without the interventionof a jury.
(Formerly: Acts 1973, P.L.55, SEC.1.)

IC 7.1-3-3-16
Costs
    Sec. 16. Costs. The commission, in the event the denial of renewalbecomes final as a result of a failure to bring an action for review, oras a result of the final judgment of the court in which the action wasbrought, shall deduct from the annual license fee accompanying the

application the amount of court costs taxed against the applicant andshall pay it to the clerk of the court. The commission shall apply thebalance of the annual license fee to the payment of a license fee forthe period of the beer wholesaler's continued operation computed atthe rate of two dollars and seventy-five cents ($2.75) per day for thenumber of calendar days, including Sundays and holidays, elapsedduring the period of continued operation.
(Formerly: Acts 1973, P.L.55, SEC.1.)

IC 7.1-3-3-17
Cancellation of franchise agreement
    Sec. 17. Cancellation of Franchise Agreement. The circuit orsuperior court of the county in which the licensed premises of a beerwholesaler are located shall have jurisdiction to enjoin thecancellation or termination of a franchise or agreement between abeer wholesaler and a brewer in violation of IC 1971, 7.1-5-5-9. Theaction may be brought by a beer wholesaler or brewer who is ormight be adversely affected by the cancellation or termination. Thecourt, in granting an injunction under this section, shall provide thatthe brewer shall not supply the customers or territory of the beerwholesaler through servicing the customers or territory throughanother beer wholesaler or by any other means while the injunctionis in effect. An injunction issued under this section shall require theposting of proper bond against damages for an injunctionimprovidently granted and a showing that the danger of irrevocableloss or damage is immediate. The beer wholesaler shall continue toservice the accounts of the brewer in good faith during the term ofthe injunction.
(Formerly: Acts 1973, P.L.55, SEC.1.)

IC 7.1-3-3-18
Certain transactions void
    Sec. 18. Certain Transactions Void. The transfer, sale, acquisition,assignment, control of, or beneficial interest, direct or indirect, in orto a beer wholesaler's permit, or in its business, or in its corporatestock, by a brewer contrary to the provisions of IC 1971, 7.1-5-9-2,or the transfer, assignment upon the capital stock book, or othercorporate record, of a corporation holding a beer wholesaler's permit,of the capital stock, or a part of it, is wholly void and not capable ofvalidation.
(Formerly: Acts 1973, P.L.55, SEC.1.)

IC 7.1-3-3-19
Permits prohibited to persons holding wine wholesaler's permitand liquor wholesaler's permit
    Sec. 19. The commission may not issue a beer wholesaler's permitto a person who holds a wine wholesaler's permit and a liquorwholesaler's permit.
As added by P.L.72-1996, SEC.5.