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 acommissioner, an officer or employee of the commission, or amember of a local board, to have an interest, either proprietory or bymeans of a loan, mortgage, or lien, or in any other manner, or to ownstock in a corporation which has an interest, in the premises wherealcoholic beverages are manufactured or sold, or in a business whollyor partially devoted to the manufacture, sale, transportation orstorage of alcoholic beverages. The prohibition contained in thissection shall not apply to an expert or professional employeeemployed by the commission only for a special undertaking. Aperson who violates a provision of this section also shall bedismissed 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 forthe holder of a brewer's permit or for a brewer located outsideIndiana that meets the requirements of IC 7.1-3-2-4 and IC 7.1-3-2-5to hold, acquire, possess, own, or control, or to have an interest,claim, or title, in or to an establishment, company, or corporationholding or applying for a beer wholesaler's permit under this title, orin its business.
(b) Except as provided in subsection (c), it is unlawful for theholder of a vintner's permit or for a vintner located outside Indianato hold, acquire, possess, own, or control, or to have an interest,claim, or title in or to, an establishment, company, or corporationholding or applying for a wine wholesaler's permit under this title, orin its business.
(c) A brewer covered by subsection (a) may provide financialassistance to the holder of a beer wholesaler's permit. A vintnercovered by subsection (b) may provide financial assistance to theholder of the wine wholesaler's permit. The following conditionsapply to the provision of financial assistance under this subsection:
(1) The brewer may not require that the holder of the beerwholesaler's permit, and the vintner may not require that theholder of a wine wholesaler's permit, accept the financialassistance.
(2) The financial assistance may be unsecured or secured.
(3) If the financial assistance is secured, it may be secured onlyby a security interest in the following property of the holder ofthe 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 theproperty in which the security interest lies may not substantiallyexceed the debt secured.
(5) Except as provided in IC 7.1-3-2-9, the brewer or the vintnermay not use financial assistance to acquire complete or partialcontrol 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 vintnermust make available to all wholesalers (of any of its products)any assistance that it offers to any one (1) wholesaler of any ofits products. This assistance must be provided on substantiallyidentical terms. The brewer or vintner may not discriminateamong wholesalers of any of its products in the enforcement ofany terms related to assistance under this section.
(7) The brewer or vintner must report to the commission anyassistance that it offers to a wholesaler under this section. Itmust 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 manufacturesmore than twenty thousand (20,000) barrels of beer in a calendaryear.
(b) It is unlawful for the holder of a brewer's or beer wholesaler'spermit to have an interest in a liquor permit of any type under thistitle.
(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 beerwholesaler's permit shall have no interest in the following:
(1) A permit to manufacture or to sell at retail alcoholicbeverages 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 alcoholicbeverages of any kind; or
(B) any other permit to wholesale alcoholic beverages of anykind.
(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 theholder of a distiller's, rectifier's, or liquor wholesaler's permit to havean 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 unlawfulfor 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 acorporation that holds an Indiana permit to sell alcoholic beveragesat retail, or in a permit to sell at retail in this state, or to own oracquire 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 sellat 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'spermit or rectifier's permit may not own, acquire, or possess a permitto sell liquor at wholesale. A distiller or rectifier may not have aninterest 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 personwho 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'spermit. It is unlawful, also, for a person who has an interest in aliquor wholesaler's permit to acquire, hold, own, or possess aninterest 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 fora holder of a retailer's permit of any type to acquire, hold, own, orpossess an interest of any type in a manufacturer's or wholesaler'spermit of any type.
(b) It is lawful for a holder of a retailer's permit of any type toacquire, hold, own, or possess an interest of any type in a brewer'spermit for a brewery that manufactures not more than twentythousand (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 fora holder of a brewer's permit, beer or liquor wholesaler's permit, ora beer or liquor retailer's permit, to own, operate, maintain on hisown account, patronize, use, or employ a warehouse, storage, ordepot, owned or operated by another person for the storage orkeeping of an alcoholic beverage except at the plant or premiseswhich 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 drugstore, a corporation holding a distiller's or brewer's permit or awholesaler's permit or a permit to retail or deal in alcoholicbeverages, a wholesale drug company, and a person who is theproprietor of a wholesale drug company may not own or control orparticipate 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 alcoholicbeverage to a person who does not hold an appropriate permit underthis title. However, this section shall not apply to the sale of analcoholic beverage to a consumer or employee as expresslyauthorized 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'squestionnaire for managers of licensed premises for the sale ofalcoholic beverages.
(b) It is unlawful for a person to:
(1) manage; or
(2) buy when the transfer of the permit is contingent upon termsof a contract or an agreement;
a licensed premises for the sale of alcoholic beverages, unless theperson 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 thistitle; and
(2) does not exempt the filer from IC 7.1-5-6-3.
As added by P.L.52-1992, SEC.11.