HB 1052

           Second Regular Session of the 124th General Assembly (2026)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
Constitution) is being amended, the text of the existing provision will appear in this style type,
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provision adopted), the text of the new provision will appear in this style type. Also, the
word NEW will appear in that style type in the introductory clause of each SECTION that adds
a new provision to the Indiana Code or the Indiana Constitution.
 Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
between statutes enacted by the 2025 Regular Session of the General Assembly.
    HOUSE ENROLLED ACT No. 1052
  AN ACT to amend the Indiana Code concerning state offices and
administration.
    Be it enacted by the General Assembly of the State of Indiana:
   SECTION 1. IC 4-31-2.1-5, AS ADDED BY P.L.105-2022,
SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 5. "Breeder" means any of the following:
     (1) The owner or lessee of a standardbred horse's dam at the time
     of registration with the commission. breeding.
     (2) The owner or lessee of a thoroughbred horse's dam at the time
     of registration with the commission. foaling for thoroughbreds.
     The commission shall recognize the breeder of a horse as the
     person designated as such on the Jockey Club Certificate of
     Registration for the horse.
     (3) The owner or lessee of a quarter horse's dam at the time of the
     dam's registration with the commission.
   SECTION 2. IC 4-31-2.1-16.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2026]: Sec. 16.5. "Judge" means an
individual who:
     (1) is licensed by the commission; and
     (2) serves as a judge or steward at a licensed facility.
   SECTION 3. IC 4-31-3-11.5, AS AMENDED BY P.L.152-2025,
SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 11.5. The commission shall employ or contract for
judges and stewards to attend each recognized meeting held under a
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permit issued under this article. A contracted judge or steward shall be
considered an employee of the commission for the purpose of
IC 4-6-2-1.5(a). The permit holder shall, in the manner prescribed by
the rules of the commission, reimburse the commission for the salaries
and other expenses of the judges and stewards who serve at the permit
holder's racetrack.
    SECTION 4. IC 4-31-6-6, AS AMENDED BY P.L.172-2011,
SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 6. (a) The commission may refuse or deny a
license application, revoke or suspend a license, or otherwise penalize
a licensee, if:
      (1) the refusal, denial, revocation, suspension, or other penalty is
      in the public interest for the purpose of maintaining proper control
      over horse racing meetings or pari-mutuel wagering; and
      (2) any of the conditions listed in subsection (b) apply to the
      applicant or licensee.
    (b) The conditions referred to in subsection (a) are as follows:
      (1) The applicant or licensee has been convicted of a felony or
      misdemeanor that could compromise the integrity of racing by the
      applicant's or licensee's participation in racing.
      (2) The applicant or licensee has had a license of the legally
      constituted racing authority of a state, province, or country
      denied, suspended, or revoked for cause within the preceding five
      (5) years.
      (3) The applicant or licensee is presently under suspension for
      cause of a license by the legally constituted racing authority of a
      state, province, or country.
      (4) The applicant or licensee has violated or attempted to violate
      a provision of this article, a rule adopted by the commission, or a
      law or rule with respect to horse racing in a jurisdiction.
      (5) The applicant or licensee has perpetrated or attempted to
      perpetrate a fraud or misrepresentation in connection with the
      racing or breeding of horses or pari-mutuel wagering.
      (6) The applicant or licensee has demonstrated financial
      irresponsibility by accumulating unpaid obligations, defaulting on
      obligations, or issuing drafts or checks that are dishonored or not
      paid.
      (7) The applicant or licensee has made a material
      misrepresentation in an application for a license.
      (8) The applicant or licensee has been convicted of a crime
      involving bookmaking, touting, or similar pursuits or has
      consorted with a person convicted of such an offense.
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     (9) The applicant or licensee has abandoned, mistreated, abused,
     neglected, or engaged in an act of cruelty to a horse.
     (10) The applicant or licensee has engaged in conduct that is
     against the best interest of horse racing or compromises the
     integrity of operations at a licensed facility.
     (11) The applicant or licensee has failed to comply with a written
     order or ruling of the commission or judges pertaining to a racing
     matter.
     (12) The applicant or licensee has failed to answer correctly under
     oath, to the best of the applicant's or licensee's knowledge, all
     questions asked by the commission or its representatives
     pertaining to a racing matter.
     (13) The applicant or licensee has failed to return to a permit
     holder any purse money, trophies, or awards paid in error or
     ordered redistributed by the commission.
     (14) The applicant or licensee has had possession of an alcoholic
     beverage on a permit holder's premises, other than a beverage
     legally sold through the permit holder's concession operation.
     (15) The applicant or licensee has interfered with or obstructed a
     member of the commission, a commission employee, or a racing
     official while performing official duties.
     (16) The name of the applicant or licensee appears on the
     department of state revenue's most recent tax warrant list, and the
     person's tax warrant has not been satisfied.
     (17) The applicant or licensee has pending criminal charges.
     (18) The applicant or licensee has racing disciplinary charges
     pending in Indiana or another jurisdiction.
     (19) The applicant or licensee is unqualified to perform the duties
     required under this article or the rules of the commission.
     (20) The applicant or licensee made a material
     misrepresentation when registering, nominating, entering, or
     racing a horse as an Indiana owned horse, Indiana sired
     horse, or Indiana bred horse.
   SECTION 5. IC 4-31-7-9, AS AMENDED BY P.L.32-2019,
SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 9. (a) After December 31, 2013, the following
individuals may not wager on horse racing at a licensed facility:
     (1) A member of the commission.
     (2) An employee of the commission.
     (3) A racing official.
     (4) The spouse of any individual listed in subdivisions (1) through
     (3).
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    (b) (a) After December 31, 2017, The following individuals may not
wager on gambling games or horse racing at a facility licensed under
IC 4-35:
      (1) A member of the commission.
      (2) The following individuals employed by the commission:
          (A) The executive director.
          (B) The assistant executive director.
          (C) The director of security.
          (D) The general counsel.
          (E) The deputy general counsel.
          (F) A steward.
          (G) (F) A judge.
      (3) The spouse of an individual described in subdivision (1) or
      (2).
    (c) (b) A person who knowingly or intentionally violates this section
commits a Class C infraction. However, the violation is a Class A
misdemeanor if the person has a prior unrelated adjudication or
conviction for a violation of this section within the previous five (5)
years.
    SECTION 6. IC 4-31-8-4, AS AMENDED BY P.L.168-2019,
SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 4. (a) A permit holder shall provide an alcohol
breath-testing device that is approved by the commission and operated
by a person certified to use such a device. The necessary
qualifications for an individual administering a breath-testing
device and the policies and procedures of the breath-testing
program are subject to the approval of either the executive
director of the commission or the director of security of the
commission. All drivers, jockeys, judges, starters, assistant starters,
and drivers of starting gates shall submit to a breath test at each racing
program in which they participate. In addition, the executive director
of the commission, a member of the commission, a commission
investigator, the stewards, judges, or the track chief of security may
order a licensee to submit to a breath test at any time there is reason to
believe the licensee may have consumed sufficient alcohol to cause the
licensee to fail a breath test.
    (b) A person whose breath test shows a reading of an alcohol
concentration equivalent (as defined in IC 9-13-2-2.4) to more than
five-hundredths (0.05) gram of alcohol per two hundred ten (210) liters
of the person's breath, is subject to the following sanctions:
      (1) A driver or jockey may not be permitted to drive or ride and
      shall be suspended under the rules of the commission.
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      (2) A judge, a starter, an assistant starter, or a driver of the
      starting gate shall be relieved of all duties for that program, and
      a report shall be made to the commission for appropriate action.
      (3) Any other licensee shall be suspended, beginning that day,
      under the rules of the commission.
   (c) The stewards and judges may, on behalf of the commission,
impose the following sanctions against a licensee who refuses to
submit to a breath test:
      (1) For the first refusal, a civil penalty of one hundred dollars
      ($100) and a seven (7) day suspension.
      (2) For a second refusal, a civil penalty of two hundred fifty
      dollars ($250) and a thirty (30) day suspension.
      (3) For any additional refusals to submit to a breath test, a civil
      penalty of two hundred fifty dollars ($250), a sixty (60) day
      suspension, and referral of the case to the commission for any
      further action that the commission considers necessary.
   (d) A sanction under subsection (c) may be appealed to the
commission. office of administrative law proceedings under
IC 4-15-10.5. IC 4-21.5 applies to an appeal under this section. The
commission has the burden of proving an alleged violation by a
preponderance of the evidence. An appeal stays the sanction until
further action by the commission. The appeal must be heard by the
commission office of administrative law proceedings within thirty
(30) days after the date of the appeal.
   SECTION 7. IC 4-31-12-5, AS AMENDED BY P.L.168-2019,
SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 5. (a) The judges, the stewards, a commission
veterinarian, a member of the commission, or the executive director of
the commission may order a test of a biological sample on a horse for
the purpose of analysis.
   (b) A biological sample shall be taken from the following horses
after the running of each race:
      (1) The horse that finishes first in each race.
      (2) Any other horses designated by the judges, the stewards, a
      commission veterinarian, a member of the commission, or the
      executive director of the commission. The judges and veterinarian
      shall designate for the taking of a biological sample a horse that
      races markedly contrary to form.
   SECTION 8. IC 4-31-12-6, AS AMENDED BY P.L.111-2022,
SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 6. (a) The commission:
      (1) shall appoint, at its cost, approve a veterinarian to take or
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      supervise the taking of biological samples under section 5 of this
      chapter;
      (2) shall approve a laboratory for the analysis of a biological
      sample taken under section 5 of this chapter; and
      (3) may require that a biological sample taken under section 5 of
      this chapter be analyzed.
    (b) The cost of analyzing the biological samples shall be borne by
the commission.
    (c) The commission may appoint, at its cost, veterinarians or other
persons to supervise all activities in the state testing barn area and to
supervise the practice of veterinary medicine at all racetracks in
Indiana.
    (d) The commission shall employ or contract for assistants
veterinarians, veterinarian technicians, and testing barn personnel
to aid in securing biological samples at each racetrack. These assistants
veterinarians, veterinarian technicians, and testing barn personnel
shall have free access, under the supervision of the commission's
veterinarian, to the state testing barn area. The permit holder shall, in
the manner prescribed by the rules of the commission, reimburse the
commission for the salaries and other expenses of the assistants
veterinarians, veterinarian technicians, and testing barn personnel
who serve at the permit holder's racetrack testing barn.
    SECTION 9. IC 4-31-12-7, AS AMENDED BY P.L.168-2019,
SECTION 11, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 7. (a) A veterinarian appointed by the commission
or employed by a permit holder may not, during the period of the
veterinarian's employment, do the following with respect to a breed of
horse registered with the commission for racing at the track of the
veterinarian's employment:
      (1) Treat or issue prescriptions for a horse, except in case of
      emergency.
      (2) Perform an endoscopic examination on a horse the day the
      horse is scheduled to race.
A full and complete record of an emergency treatment or a prescription
authorized by subdivision (1) shall be filed with the stewards or judges.
    (b) Except as provided in subsection (c), an owner or trainer may
not directly or indirectly employ or pay compensation to a veterinarian
with respect to the care of a horse belonging to a breed of horse
registered with the commission for racing at the track of the
veterinarian's employment.
    (c) An owner or trainer may pay a veterinarian employed by the
commission or a permit holder for an endoscopic examination
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permitted under subsection (a).
    SECTION 10. IC 4-31-12-15, AS AMENDED BY P.L.210-2013,
SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 15. (a) The commission may adopt rules under
IC 4-22-2 to delegate to the stewards and judges of racing meetings the
authority to conduct disciplinary hearings on behalf of the commission.
The stewards and judges shall give at least twelve (12) hours notice of
any such hearing. The stewards and judges, on behalf of the
commission, may impose one (1) or more of the following sanctions
against a licensee who violates sections 2 through 13 of this chapter:
      (1) A civil penalty not to exceed five thousand dollars ($5,000).
      (2) A temporary order or other immediate action in the nature of
      a summary suspension where a licensee's actions constitute an
      immediate danger to the public health, safety, or welfare.
      (3) Suspension of a license held by the licensee for up to one (1)
      year. The suspension of a license under this subdivision is:
         (A) valid even though the suspension extends beyond the
         period of the racing meeting for which the stewards and judges
         have been appointed; and
         (B) effective at all other racing meetings under the jurisdiction
         of the commission.
      (4) A rule that a person must stay off the premises of one (1) or
      more permit holders if necessary in the public interest to maintain
      proper control over recognized meetings.
      (5) Referral of the matter to the commission for its consideration.
However, at least two (2) of the stewards or judges must concur in a
sanction.
    (b) Unless a suspension of a license or the imposition of a civil
penalty under this section is appealed by the person sanctioned not
more than fifteen (15) days after being sanctioned, the suspension of a
license or the imposition of a civil penalty under this section must
occur within one hundred eighty (180) days of the date of the violation.
    (c) A sanction under this section may be appealed to the
commission. Judges and stewards imposing sanctions under this
section must prove the person's violation by a preponderance of the
evidence. The commission shall adopt rules establishing procedures for
appeals and stays of appeals. The commission shall conduct a hearing
on an appeal filed under this section as provided in IC 4-21.5.
    SECTION 11. IC 4-31-13-1, AS AMENDED BY P.L.210-2013,
SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 1. (a) The commission may issue orders under
IC 4-21.5 to:
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      (1) deny, suspend, diminish, or revoke permits and licenses as
      authorized by this article; and
      (2) impose civil penalties, in addition to any other penalty
      imposed by the commission on a person who violates this article
      or a rule or an order of the commission.
   (b) The commission or the commission's designee, as determined
under the rules of the commission, on its own motion or in addition to
a penalty assessed by the stewards and judges, may issue orders under
IC 4-21.5 to rule a person off one (1) or more permit holders' premises,
if necessary in the public interest to maintain proper control over
recognized meetings.
   (c) A civil penalty imposed against a licensee under subsection
(a)(2) may not exceed five thousand dollars ($5,000). For purposes of
subsection (a)(2), each day during which a violation of this article or
a rule or an order of the commission continues to occur constitutes a
separate offense.
   (d) Civil penalties imposed under this article shall be deposited in
the state general fund.
   SECTION 12. IC 4-31-13-2, AS AMENDED BY P.L.152-2025,
SECTION 13, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 2. (a) The commission may adopt rules under
IC 4-22-2 to delegate to the stewards and judges of racing meetings
under the jurisdiction of the commission the power to conduct
disciplinary hearings on behalf of the commission. The stewards and
judges shall give at least twelve (12) hours notice of any such hearing.
The stewards and judges, on behalf of the commission, may impose one
(1) or more of the following sanctions against a licensee who violates
this article or the rules or orders of the commission:
      (1) A civil penalty not to exceed five thousand dollars ($5,000).
      (2) A temporary order or other immediate action in the nature of
      a summary suspension if a licensee's actions constitute an
      immediate danger to the public health, safety, or welfare.
      (3) Suspension of a license held by the licensee for not more than
      three (3) years. The suspension of a license under this subdivision
      is:
          (A) valid even though the suspension extends beyond the
          period of the racing meeting for which the stewards and judges
          have been appointed; and
          (B) effective at all other racing meetings under the jurisdiction
          of the commission.
      (4) A rule that a person must stay off the premises of one (1) or
      more permit holders if necessary in the public interest to maintain
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      proper control over recognized meetings.
      (5) Referral of the matter to the commission for its consideration.
However, at least two (2) of the stewards or judges at a racing meeting
must concur in a suspension or civil penalty.
    (b) Unless a suspension of a license or the imposition of a civil
penalty under this section is appealed by the person sanctioned not
more than fifteen (15) days after being sanctioned, the suspension of a
license or the imposition of a civil penalty under this section must
occur within three hundred sixty-five (365) days after the date of the
violation.
    (c) A suspension or civil penalty under this section may be appealed
to the commission. Judges and stewards imposing sanctions under this
section must prove the person's violation by a preponderance of the
evidence. The commission shall adopt rules establishing procedures for
appeals and stays of appeals. The commission shall conduct a hearing
on an appeal filed under this section as provided in IC 4-21.5. office of
administrative law proceedings under IC 4-15-10.5. IC 4-21.5
applies to an appeal under this section. The commission has the
burden of proving an alleged violation by a preponderance of the
evidence.
    SECTION 13. IC 4-32.3-5-8, AS ADDED BY P.L.58-2019,
SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 8. (a) Except as provided in subsection (b) or (c),
an operator, a worker, or a volunteer ticket agent who is not a full-time
employee may not receive remuneration of not more than fifty dollars
($50) for:
      (1) conducting; or
      (2) assisting in conducting;
an allowable activity.
    (b) In addition to the remuneration permitted under subsection
(a), a qualified organization that conducts an allowable activity may:
      (1) provide meals for the operators and workers during the
      allowable event; and
      (2) provide recognition dinners and social events for the operators
      and workers;
if the value of the meals and social events does not constitute a
significant inducement to participate an unreasonable expense in the
conduct of the allowable activity.
    (c) In the case of a qualified organization selling pull tabs,
punchboards, or tip boards under an annual activity license, any
employee of the qualified organization may:
      (1) participate in the sale and redemption of pull tabs,
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      punchboards, or tip boards on the premises of the qualified
      organization; and
      (2) receive the remuneration ordinarily provided to the employee
      in the course of the employee's employment.
    SECTION 14. IC 4-33-4-3, AS AMENDED BY P.L.93-2024,
SECTION 30, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 3. (a) The commission shall do the following:
      (1) Adopt rules that the commission determines necessary to
      protect or enhance the following:
          (A) The credibility and integrity of gambling operations
          authorized by this article.
          (B) The regulatory process provided in this article.
      (2) Conduct all hearings concerning civil violations of this article.
      (3) Provide for the establishment and collection of license fees
      and taxes imposed under this article.
      (4) Deposit the license fees and taxes in the state gaming fund
      established by IC 4-33-13.
      (5) Levy and collect penalties for noncriminal violations of this
      article.
      (6) Deposit the penalties in the state gaming fund established by
      IC 4-33-13.
      (7) Be present through the commission's gaming agents during the
      time gambling operations are conducted on a riverboat to do the
      following:
          (A) Certify the revenue received by a riverboat.
          (B) Receive complaints from the public.
          (C) Conduct other investigations into the conduct of the
          gambling games and the maintenance of the equipment that
          the commission considers necessary and proper.
      (8) Adopt rules to establish and implement a voluntary exclusion
      program that meets the requirements of subsection (b).
      (9) Establish the requirements for a power of attorney submitted
      under IC 4-33-6-2(c), IC 4-33-6-22, IC 4-33-6.5-2(c), or
      IC 4-33-6.5-16.
    (b) Rules adopted under subsection (a)(8) must provide the
following:
      (1) Except as provided by rule of the commission, a person who
      participates in the voluntary exclusion program agrees to refrain
      from entering a riverboat or other facility under the jurisdiction of
      the commission or from placing a wager with a certificate
      holder licensed under IC 4-38.
      (2) That the name and last four (4) digits of the Social Security
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     number of a person participating in the program will be included
     on a list of persons excluded from all facilities under the
     jurisdiction of the commission.
     (3) Except as provided by rule of the commission, a person who
     participates in the voluntary exclusion program may not petition
     the commission for readmittance to a facility under the
     jurisdiction of the commission.
     (4) That the list of patrons entering the voluntary exclusion
     program and the personal information of the participants are
     confidential and may only be disseminated by the commission to
     the owner or operator of a facility under the jurisdiction of the
     commission and to a certificate holder licensed under IC 4-38
     for purposes of enforcement and to other entities, upon request by
     the participant and agreement by the commission.
     (5) That an owner of a facility under the jurisdiction of the
     commission and a certificate holder licensed under IC 4-38
     shall make all reasonable attempts as determined by the
     commission to cease all direct marketing efforts to a person
     participating in the program.
     (6) That an owner of a facility under the jurisdiction of the
     commission and a certificate holder licensed under IC 4-38
     may not cash the check of a person participating in the program
     or extend credit to the person in any manner. However, the
     voluntary exclusion program does not preclude an owner or a
     certificate holder from seeking the payment of a debt accrued by
     a person before entering the program.
   SECTION 15. IC 4-33-10-7 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2026]: Sec. 7. (a) As used in this section, "sweepstakes game"
means a game, contest, or promotion that:
     (1) is available on the Internet;
     (2) is accessible on a mobile phone, computer terminal, or
     similar access device;
     (3) utilizes a dual-currency or multi-currency system of
     payment allowing a player to exchange currency for:
         (A) a cash prize, a cash award, or cash equivalents; or
         (B) a chance to win a cash prize, a cash award, or cash
         equivalents; and
     (4) simulates:
         (A) lottery games; or
         (B) casino-style gaming, including slot machines, video
         poker, table games, bingo, or sports wagering.
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However, the term does not include a game, contest, or promotion
offered by the state lottery commission or peer to peer skill-based
poker games.
    (b) The commission may levy a civil penalty in the amount of
one hundred thousand dollars ($100,000) against an operator or
individual who knowingly uses the Internet to conduct a
sweepstakes game:
      (1) in Indiana; or
      (2) in a transaction directly involving a person located in
      Indiana.
    SECTION 16. IC 7.1-1-3-8.5 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2026]: Sec. 8.5. "Certificate" means
a retail or wholesale tobacco sales certificate for purposes of
IC 7.1-3-18.5.
    SECTION 17. IC 7.1-1-3-27.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2026]: Sec. 27.5. "Organized sporting
competition" means a sporting event sanctioned by a recognized
governing or regulatory body.
    SECTION 18. IC 7.1-1-3-45.7 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2026]: Sec. 45.7. "Sports arena" means an
indoor or outdoor facility where the main purpose and function of
the facility is organized sporting competition. The term does not
include:
      (1) a facility to which IC 7.1-3-1-25(a) applies;
      (2) a tract that contains a premises described in
      IC 7.1-3-1-14(d)(2); or
      (3) a facility primarily used for professional competition.
    SECTION 19. IC 7.1-2-1-8 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2026]: Sec. 8. Bond and Oath of
Office. Each commissioner shall execute a surety bond in the amount
of ten thousand dollars ($10,000), with surety approved by the
governor, and an oath of office, both of which shall be filed in the
office of the secretary of state.
    SECTION 20. IC 7.1-2-1-9 IS REPEALED [EFFECTIVE JULY 1,
2026]. Sec. 9. Surety Bonds. The required surety bond executed and
filed on behalf of a commissioner, an enforcement officer, or the
prosecutor shall be made payable to the State of Indiana and
conditioned upon the faithful discharge of the bonded party's respective
duties.
    SECTION 21. IC 7.1-2-2-3 IS AMENDED TO READ AS
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FOLLOWS [EFFECTIVE JULY 1, 2026]: Sec. 3. Bond and Oath of
Office. The prosecutor shall execute a surety bond in the amount of
five thousand dollars ($5,000), with surety approved by the governor,
and an oath of office, both of which shall be filed in the office of the
secretary of state.
   SECTION 22. IC 7.1-2-2-10 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2026]: Sec. 10. Enforcement
Officers: Bond and Oath of Office. Each enforcement officer shall
execute a surety bond in the amount of one thousand dollars ($1,000),
with surety approved by the commission, and an oath of office, both of
which shall be filed with the executive secretary of the commission.
   SECTION 23. IC 7.1-3-1.5-1, AS AMENDED BY P.L.163-2025,
SECTION 11, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 1. As used in this chapter, "alcohol server" means
the following:
      (1) A person who works on the licensed premises of a retailer
      permittee as: a:
         (A) a manager;
         (B) a bartender;
         (C) a waiter or a waitress; or
         (D) except for a current or retired law enforcement officer
         (as defined in IC 35-31.5-2-185) or a graduate of a reserve
         officer program approved by the Indiana law enforcement
         academy, a contractor or an employee responsible for
         examining an individual's identification to determine the
         individual's age, including controlling the entry of individuals
         to a licensed premises at a time when entry into the licensed
         premises is restricted to those individuals at least twenty-one
         (21) years of age.
      (2) A person who works on the licensed premises of a dealer
      permittee as a:
         (A) manager; or
         (B) sales clerk.
      (3) A person who is the proprietor of or is employed by an art
      instruction studio under IC 7.1-5-8-4.6 that serves wine brought
      into the studio by patrons.
   SECTION 24. IC 7.1-3-3-5, AS AMENDED BY P.L.163-2025,
SECTION 13, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 5. (a) The holder of a beer wholesaler's permit
may purchase and import from the primary source of supply, possess,
and sell at wholesale, beer and flavored malt beverages manufactured
within or without this state.
HEA 1052 — CC 1
                                   14
    (b) A beer wholesaler permittee may possess, transport, sell, and
deliver beer to:
       (1) another beer wholesaler authorized by the brewer to sell the
       brand purchased;
       (2) an employee; and
       (3) a holder of a beer retailer's permit, beer dealer's permit,
       temporary beer permit, dining car permit, boat permit, airplane
       permit, or supplemental caterer's permit; and
       (4) a food manufacturer that is registered with the federal
       Food and Drug Administration, for the purpose of adding or
       integrating the beer into a product or recipe;
located within this state. The sale, transportation, and delivery of beer
shall be made only from inventory that has been located on the
wholesaler's premises before the time of invoicing and delivery.
    (c) The beer wholesaler's bona fide regular employees may purchase
beer from the wholesaler in:
       (1) bottles, cans, or any other type of permissible containers in an
       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 delivery
of beer shall be subject to the rules of the commission and subject to
the same restrictions provided in this title for a person holding a
brewer's permit.
    (e) The holder of a beer wholesaler's permit may purchase, import,
possess, transport, sell, and deliver any commodity listed in
IC 7.1-3-10-5, unless prohibited by this title. However, a beer
wholesaler may deliver flavored malt beverages only to the holder of
one (1) of the following permits:
       (1) A beer wholesaler or wine wholesaler permit, if the wholesaler
       is authorized by the primary source of supply to sell the brand of
       flavored malt beverage purchased.
       (2) A wine retailer's permit, wine dealer's permit, temporary wine
       permit, dining car wine permit, boat permit, airplane permit, or
       supplemental caterer's permit.
    (f) A beer wholesaler may:
       (1) store beer for an out-of-state brewer described in IC 7.1-3-2-9
       and deliver the stored beer to another beer wholesaler that the
       out-of-state brewer authorizes to sell the beer;
       (2) perform all necessary accounting and auditing functions
       associated with the services described in subdivision (1); and
       (3) receive a fee from an out-of-state brewer for the services
HEA 1052 — CC 1
                                   15
      described in subdivisions (1) through (2).
    (g) A beer wholesaler may sell, donate, transport, and deliver beer
to a qualified organization for:
      (1) an allowable event under IC 7.1-3-6.1;
      (2) a charity auction under IC 7.1-3-6.2; or
      (3) an event under IC 7.1-3-6.3;
located within this state. The sale, donation to a qualified organization,
transportation, and delivery of beer shall be made only from inventory
that has been located on the wholesaler's premises before the time of
invoicing and delivery.
    SECTION 25. IC 7.1-3-14-4, AS AMENDED BY SEA 23-2026,
SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 4. (a) The holder of a wine retailer's permit is
entitled to purchase wine only from a permittee entitled to sell to the
wine retailer under this title. A wine retailer is entitled to possess wine
and sell wine at retail to a customer for consumption on the licensed
premises. A wine retailer is also entitled to sell wine to a customer and
deliver wine in permissible containers to the customer on the licensed
premises or to the customer's house. Except as provided in section 8
of this chapter, this delivery may only be performed by the permit
holder or an employee who holds an employee permit. The permit
holder shall maintain a written record of each delivery for at least one
(1) year that shows the customer's name, location of delivery, and
quantity sold. Subject to subsection (g), a wine retailer also may
prepare and package wine in qualified containers for sale and delivery
to a customer on the licensed premises for consumption off the licensed
premises.
    (b) A wine retailer is not entitled to sell wine at wholesale. A wine
retailer is not entitled to sell and deliver wine on the street or at the
curb outside the licensed premises, nor is the wine retailer entitled to
sell wine at a place other than the licensed premises. However, a wine
retailer may offer food service (excluding alcoholic beverages) to a
patron who is outside the licensed premises by transacting business
through a window in the licensed premises.
    (c) A wine retailer is entitled to sell and deliver wine for carry out,
or for at-home delivery. A wine retailer that delivers wine to a
customer's residence must require the customer to provide proof of age
in accordance with IC 7.1-5-10-23.
    (d) Notwithstanding IC 7.1-1-3-20, the licensed premises of the
wine retailer may include the wine retailer parking lot or an area
adjacent to the wine retailer that may only be used for the purpose of
conveying alcoholic beverages and other nonalcoholic items to a
HEA 1052 — CC 1
                                   16
customer, and may not be used for point of sale purposes or any other
purpose. Any alcoholic beverages conveyed to the customer must
satisfy the following:
      (1) Alcoholic beverages that are in the sealed original containers
      must be placed in a bag that is stamped, printed, or labeled on the
      outside: "CONTAINS ALCOHOLIC BEVERAGES".
      (2) Alcoholic beverages that are prepared by the wine retailer
      must be packaged by the wine retailer in qualified containers that
      are:
         (A) stamped, printed, or labeled on the outside: "CONTAINS
         ALCOHOLIC BEVERAGES"; or
         (B) placed in a bag stamped, printed, or labeled on the outside:
         "CONTAINS ALCOHOLIC BEVERAGES".
      (3) Placed by an employee of the permittee who is at least
      twenty-one (21) years of age:
         (A) in the trunk of the motor vehicle; or
         (B) behind the last upright seat of the motor vehicle, if the
         motor vehicle is not equipped with a trunk.
A retailer permittee may only convey a customer's order of alcoholic
beverages to the customer, if the customer has also purchased a meal
from the retailer permittee that is conveyed to the customer at the same
time as the alcoholic beverages.
   (e) The employee of the permittee that conveys the alcoholic
beverages to the customer must require the customer to provide proof
of age in accordance with IC 7.1-5-10-23.
   (f) The parking lot or area where the alcoholic beverages are
conveyed to the customer must be:
      (1) well lit; and
      (2) within clear view of the main entrance to the building of the
      retailer premises.
   (g) If a wine retailer prepares and packages wine:
      (1) for sale and delivery to a customer on the licensed premises
      for consumption off the licensed premises; and
      (2) in a container that is not in a qualified container;
the commission may revoke the wine retailer's privilege under this
section of preparing and packaging wine for sale and delivery to a
customer in a qualified container.
   (h) Upon proper notice to the commission under
IC 7.1-3-21-14.5(d)(1), a wine retailer may participate in an event
sponsored by a local board on the grounds of a county fair under
IC 7.1-3-21-14.5(b).
   SECTION 26. IC 7.1-3-14-8 IS ADDED TO THE INDIANA CODE
HEA 1052 — CC 1
                                   17
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2026]: Sec. 8. (a) A wine retailer may sell wine for consumption
off the licensed premises from a display in a room:
      (1) where the bar is located or alcoholic beverages are stored,
      prepared, or dispensed for consumption on the licensed
      premises;
      (2) that is not partitioned to create a section that is solely or
      primarily for package sales of wine; and
      (3) that does not have a separate cash register for package
      sales.
    (b) This subsection applies only to a wine retailer if the sale of
wine on the licensed premises is at least sixty percent (60%) of the
annual gross income of the premises. A wine retailer may allow a
customer to obtain by self-service sealed bottles of wine for
consumption off the licensed premises from a display under
subsection (a).
    SECTION 27. IC 7.1-3-16-9, AS AMENDED BY P.L.153-2015,
SECTION 11, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 9. The holder of a temporary wine permit
shall be entitled to purchase and receive wine or mixed beverages (as
defined in IC 7.1-1-3-26.2) on any day of the year, only from a lawful
supplier under this title at his place of business. A lawful supplier may
sell and deliver wine or mixed beverages (as defined in
IC 7.1-1-3-26.2) to a temporary wine permit holder on any day of the
year at his place of business. Except as provided in IC 7.1-3-6.1 and
IC 7.1-3-6.2, the holder of a temporary wine permit shall be entitled to
sell wine or mixed beverages (as defined in IC 7.1-1-3-26.2) only for
consumption on the licensed premises, and shall be subject to the same
restrictions as apply to the sale of beer by the holder of a temporary
beer permit. Except as provided in IC 7.1-3-6.1 and IC 7.1-3-6.2, a
temporary wine permittee shall not be entitled to sell at wholesale nor
for carry-out from the licensed premises.
    SECTION 28. IC 7.1-3-18.5-0.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2026]: Sec. 0.5. For purposes of this chapter,
"wholesale" means the business of selling, bartering, exchanging,
or distributing tobacco products or electronic cigarettes to
certificate holders in Indiana for the purpose of resale.
    SECTION 29. IC 7.1-3-18.5-2, AS AMENDED BY P.L.107-2024,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 2. (a) A person who desires a certificate must
provide the following to the commission:
HEA 1052 — CC 1
                                   18
      (1) The applicant's name and mailing address and the address of
      the premises for which the certificate is being issued.
      (2) Except as provided in section 6(c) of this chapter, a fee of:
         (A) two hundred dollars ($200) for a retail tobacco sales
         certificate; or
         (B) one hundred dollars ($100) for a wholesale tobacco
         sales certificate.
      (3) The name under which the applicant transacts or intends to
      transact business.
      (4) The address of the applicant's principal place of business or
      headquarters, if any.
      (5) The statement required under section 2.6 of this chapter.
      (6) If the applicant is applying for a new certificate under section
      3.2 of this chapter, a copy of each of the following:
         (A) If the new ownership of the business is a business entity,
         the articles of incorporation, articles of organization, or any
         other formation documents of the business entity.
         (B) If the new ownership of the business is an individual,
         either:
            (i) the sales or purchase agreement; or
            (ii) an affidavit signed by the applicant concerning the sale
            or purchase, on a form prescribed by the commission, that
            includes the name and address of the seller and purchaser.
         (C) The certificate held by the previous ownership of the
         business.
      (7) A photocopy of the owner's driver's license, identification
      card issued under IC 9-24-16-1, a similar card issued under
      the laws of another state or the federal government, or
      another government issued document that bears the owner's
      photograph and birth date. If the applicant is a business with
      multiple owners, the applicant must designate at least one (1)
      managing owner for whom a photocopy of the managing
      owner's identification must be provided under this
      subdivision.
   (b) A separate certificate is required for each location where the
tobacco products or electronic cigarettes are sold or distributed. A retail
An establishment may not hold more than one (1) active tobacco sales
certificate for a retail location at any time. Except when the real estate
for a retail location is transferred to an independent third party,
the commission shall not issue a certificate to a retail location
where a tobacco sales certificate was revoked within one (1) year
prior to the date of the application.
HEA 1052 — CC 1
                                   19
    (c) A certificate holder shall conspicuously display the holder's
certificate on the holder's premises where the tobacco products or
electronic cigarettes are sold or distributed.
    (d) Any intentional misstatement or suppression of a material fact
in an application filed under this section constitutes grounds for denial
or revocation of the certificate.
    (e) A certificate may be issued only to a person who meets the
following requirements:
       (1) If the person is an individual, the person must be at least
       twenty-one (21) years of age.
       (2) The person must be authorized to do business in Indiana.
       (3) The person has not had an interest in a certificate revoked by
       the commission for that business location within the preceding
       one (1) year.
    (f) The fees collected under this section shall be deposited in the
enforcement and administration fund under IC 7.1-4-10.
    SECTION 30. IC 7.1-3-18.5-2.6, AS ADDED BY P.L.94-2008,
SECTION 38, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 2.6. An application for a tobacco sales certificate
must contain the express statement of the applicant that the applicant
consents for the duration of the certificate term (if the commission
issues the certificate to the applicant) to the entrance, inspection, and
search by an enforcement officer, without a warrant or other process,
of the applicant's retail premises to determine whether the applicant is
complying with the provisions of this title. The consent required by this
section is renewed and continued by the retention of a certificate or the
certificate's use by the applicant or the applicant's agents.
    SECTION 31. IC 7.1-3-18.5-3, AS AMENDED BY P.L.224-2005,
SECTION 11, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 3. (a) A certificate issued by the commission
under this chapter must contain the following information:
       (1) The certificate number.
       (2) The certificate holder's name.
       (3) The permanent location of the business or vending machine
       for which the certificate is issued.
       (4) The expiration date of the certificate.
    (b) A retail tobacco sales certificate is:
       (1) valid for three (3) years after the date of issuance, unless the
       commission suspends the retail tobacco sales certificate; and
       (2) nontransferable.
    (c) A wholesale tobacco sales certificate:
       (1) is valid for one (1) year after the date of issuance, unless
HEA 1052 — CC 1
                                    20
      the commission suspends the wholesale tobacco sales
      certificate;
      (2) is nontransferable; and
      (3) may be issued:
          (A) in conjunction with a tobacco sales certificate; or
          (B) for the same location for which a tobacco sales
          certificate has been issued;
      if the operation of each certificate occurs separately within a
      distinct area on the premises.
    SECTION 32. IC 7.1-3-18.5-9.2, AS ADDED BY P.L.107-2024,
SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 9.2. (a) An employee of a certificate holder must
hold a valid:
      (1) driver's license issued by the state of Indiana or another state;
      or
      (2) identification card issued by the state of Indiana, another state,
      or the United States;
to sell tobacco products.
    (b) An employee must have the employee's driver's license or
identification card or a copy of the employee's driver's license or
identification card:
      (1) either:
          (A) in the employee's possession; or
          (B) on file with the employee's employer; and
      (2) upon request, readily available to show to an excise officer or
      law enforcement;
when selling tobacco products.
    (c) If an employee holds a valid license or identification card as
described in subsection (a) but is unable to show the license,
identification card, or a copy to an excise officer under subsection (b)
because:
      (1) the employee has left the license, identification card, or copy
      in another location; or
      (2) the license, identification card, or copy has otherwise been lost
      or mislaid;
the employee may, within five (5) days of the employee's inability to
show the license, identification card, or copy to the excise officer,
produce to the excise officer or to the office of the commission
satisfactory evidence of a license or identification card issued to the
individual that was valid at the time the individual was unable to show
the license, identification card, or copy.
    (d) If an employee who is unable to show a license, identification
HEA 1052 — CC 1
                                   21
card, or copy to an excise officer fails to produce satisfactory evidence
within five (5) days in the manner described in subsection (c), the
commission may impose a civil penalty on the certificate holder under
IC 7.1-3-23-3.
    (e) The commission shall take the following actions with respect
to a certificate holder's certificate if the certificate holder's
employees violate this section:
      (1) For three (3) violations in a one (1) year period, suspend
      the certificate for a period of five (5) days.
      (2) For four (4) violations in a one (1) year period, suspend the
      certificate for a period of an additional five (5) days.
      (3) For five (5) violations in a one (1) year period, suspend the
      certificate for a period of an additional five (5) days.
      (4) For six (6) or more violations in a one (1) year period,
      revoke the certificate.
    SECTION 33. IC 7.1-3-20-16.8, AS AMENDED BY SEA 89-2026,
SECTION 1, AND BY THE TECHNICAL CORRECTIONS BILL OF
THE 2026 GENERAL ASSEMBLY, IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 16.8. (a) A permit
that is authorized by this section may be issued without regard to the
quota provisions of IC 7.1-3-22.
    (b) Except as provided in section 16.3 of this chapter, the
commission may issue not more than four (4) new three-way permits
to sell alcoholic beverages for on-premises consumption to applicants
in each of the following municipalities:
      (1) Whitestown.
      (2) Lebanon.
      (3) Zionsville.
      (4) Westfield.
      (5) Carmel.
      (6) Fishers.
      (7) Noblesville.
    (c) The following apply to permits issued under subsection (b):
      (1) An applicant for a permit under subsection (b) must be a
      proprietor, as owner or lessee, or both, of a restaurant located
      within an economic development area, an area needing
      redevelopment, or a redevelopment district as established under
      IC 36-7-14 in a municipality's:
          (A) downtown redevelopment district; or
          (B) downtown economic revitalization area.
      (2) The cost of an initial permit is forty thousand dollars
      ($40,000).
HEA 1052 — CC 1
                                   22
     (3) The total number of active permits issued under subsection (b)
     may not exceed twenty-four (24) permits at any time. If any of the
     permits issued under subsection (b) are revoked or not renewed,
     the commission may issue only enough new permits to bring the
     total number of permits to twenty-four (24) active permits, with
     not more than four (4) in each municipality listed in subsection
     (b)(1) through (b)(6).
     (4) The municipality may adopt an ordinance under
     IC 7.1-3-19-17 requiring a permit holder to enter into a formal
     written commitment as a condition of eligibility for a permit. As
     set forth in IC 7.1-3-19-17(b), a formal written commitment is
     binding on the permit holder and on any lessee or proprietor of
     the permit premises.
     (5) Notwithstanding IC 7.1-3-1.1, if business operations cease at
     the permit premises for more than six (6) months, the permit shall
     revert to the commission and the permit holder is not entitled to
     any refund or other compensation.
     (6) Except as provided in subdivision (8), the ownership of a
     permit may not be transferred.
     (7) A permit may not be transferred from the premises for which
     the permit was issued.
     (8) If the area in which the permit premises is located is no longer
     designated an economic development area, an area needing
     redevelopment, or a redevelopment district, a permit issued under
     this section may be renewed, and the ownership of the permit may
     be transferred, but the permit may not be transferred from the
     permit premises.
   (d) Except as provided in section 16.3 of this chapter, in addition to
the permits issued to the town of Whitestown under subsection (c), the
commission may issue to the town of Whitestown not more than:
     (1) three (3) new three-way permits; and
     (2) three (3) new two-way permits;
under this subsection.
   (e) The following apply to permits issued under subsection (d):
     (1) An applicant for a permit under subsection (d)(1) or (d)(2)
     must be a proprietor, an owner or lessee, or both, of a restaurant
     located within an economic development area, an area needing
     redevelopment, or a redevelopment district as established under
     IC 36-7-14 in a municipality's:
        (A) downtown redevelopment district; or
        (B) downtown economic revitalization area.
     (2) The cost of an initial permit is forty thousand dollars
HEA 1052 — CC 1
                                   23
       ($40,000).
       (3) The total number of active permits issued under subsection (d)
       may not exceed the six (6) permits allocated by permit type, as set
       forth in that subsection.
       (4) The municipality may adopt an ordinance under
       IC 7.1-3-19-17 requiring a permit holder to enter into a formal
       written commitment as a condition of eligibility for a permit. As
       set forth in IC 7.1-3-19-17(b), a formal written commitment is
       binding on the permit holder and on any lessee or proprietor of
       the permit premises.
       (5) Notwithstanding IC 7.1-3-1.1, if business operations cease at
       the permit premises for more than six (6) months, the permit shall
       revert to the commission and the permit holder is not entitled to
       any refund or other compensation.
       (6) Except as provided in subdivision (8), the ownership of a
       permit may not be transferred.
       (7) A permit may not be transferred from the premises for which
       the permit was issued.
       (8) If the area in which the permit issued to a premises under
       subsection (d)(1) or (d)(2) is located is no longer designated an
       economic development area, an area needing redevelopment, or
       a redevelopment district, a permit issued under this section may
       be renewed, and the ownership of the permit may be transferred,
       but the permit may not be transferred from the permit premises.
    (f) Except as provided in section 16.3 of this chapter, in addition to
the permits issued to the city of Noblesville under subsection (c), the
commission may issue to the city of Noblesville not more than ten (10)
new three-way permits under this subsection. The new three-way
permits may be issued as follows:
       (1) Three (3) new three-way permits in 2024.
       (2) Three (3) new three-way permits in 2025.
       (3) Four (4) new three-way permits in 2026.
If the commission does not issue the amount of three-way permits
allowed in subdivisions (1) through (3) in that year, any unissued
permits will roll over and may be issued in a subsequent year.
    (g) The following apply to permits issued under subsection (f):
       (1) An applicant for a permit under subsection (f) must be a
       proprietor, an owner or lessee, or both, of a restaurant located
       within an economic development area, an area needing
       redevelopment, or a redevelopment district as established under
       IC 36-7-14 in a municipality's:
          (A) downtown redevelopment district; or
HEA 1052 — CC 1
                                  24
         (B) downtown economic revitalization area.
     (2) The cost of an initial permit is forty thousand dollars
     ($40,000).
     (3) The total number of active permits issued under subsection (f)
     may not exceed the ten (10) new three-way permits, as set forth
     in that subsection.
     (4) The municipality may adopt an ordinance under
     IC 7.1-3-19-17 requiring a permit holder to enter into a formal
     written commitment as a condition of eligibility for a permit. As
     set forth in IC 7.1-3-19-17(b), a formal written commitment is
     binding on the permit holder and on any lessee or proprietor of
     the permit premises.
     (5) Notwithstanding IC 7.1-3-1.1, if business operations cease at
     the permit premises for more than six (6) months, the permit shall
     revert to the commission and the permit holder is not entitled to
     any refund or other compensation.
     (6) Except as provided in subdivision (8), the ownership of a
     permit may not be transferred.
     (7) A permit may not be transferred from the premises for which
     the permit was issued.
     (8) If the area in which the permit issued to a premises under
     subsection (f) is located is no longer designated an economic
     development area, an area needing redevelopment, or a
     redevelopment district, a permit issued under this section may be
     renewed, and the ownership of the permit may be transferred, but
     the permit may not be transferred from the permit premises.
   (h) Except as provided in section 16.3 of this chapter, the
commission may issue to the city of Delphi not more than two (2) new
three-way permits under this subsection. (i) The following apply to
permits issued under this subsection: (h):
     (1) An applicant for a permit under subsection (h) must be a
     proprietor, an owner or lessee, or both, of a restaurant located
     within an economic development area, an area needing
     redevelopment, or a redevelopment district as established under
     IC 36-7-14 in a municipality's:
         (A) downtown redevelopment district; or
         (B) downtown economic revitalization area.
     (2) The cost of an initial permit is forty thousand dollars
     ($40,000).
     (3) The total number of active permits issued under this
     subsection (h) may not exceed the two (2) new three-way permits.
     as set forth in that subsection.
HEA 1052 — CC 1
                                   25
      (4) The municipality may adopt an ordinance under
      IC 7.1-3-19-17 requiring a permit holder to enter into a formal
      written commitment as a condition of eligibility for a permit. As
      set forth in IC 7.1-3-19-17(b), a formal written commitment is
      binding on the permit holder and on any lessee or proprietor of
      the permit premises.
      (5) Notwithstanding IC 7.1-3-1.1, if business operations cease at
      the permit premises for more than six (6) months, the permit shall
      revert to the commission and the permit holder is not entitled to
      any refund or other compensation.
      (6) Except as provided in subdivision (8), the ownership of a
      permit may not be transferred.
      (7) A permit may not be transferred from the premises for which
      the permit was issued.
      (8) If the area in which the permit issued to a premises under this
      subsection (h) is located is no longer designated an economic
      development area, an area needing redevelopment, or a
      redevelopment district, a permit issued under this section may be
      renewed, and the ownership of the permit may be transferred, but
      the permit may not be transferred from the permit premises.
   (j) (i) Except as provided in section 16.3 of this chapter, the
commission may issue to the city of Warsaw not more than three (3)
new three-way permits under this subsection. (k) The following apply
to permits issued under this subsection: (j):
      (1) An applicant for a permit under subsection (j) must be a
      proprietor, an owner or lessee, or both, of a restaurant located
      within an economic development area, an area needing
      redevelopment, or a redevelopment district as established under
      IC 36-7-14 in a municipality's:
         (A) downtown redevelopment district; or
         (B) downtown economic revitalization area.
      (2) The cost of an initial permit is forty thousand dollars
      ($40,000).
      (3) The total number of active permits issued under this
      subsection (j) may not exceed the three (3) new three-way
      permits. as set forth in that subsection.
      (4) The municipality may adopt an ordinance under
      IC 7.1-3-19-17 requiring a permit holder to enter into a formal
      written commitment as a condition of eligibility for a permit. As
      set forth in IC 7.1-3-19-17(b), a formal written commitment is
      binding on the permit holder and on any lessee or proprietor of
      the permit premises.
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                                   26
       (5) Notwithstanding IC 7.1-3-1.1, if business operations cease at
       the permit premises for more than six (6) months, the permit shall
       revert to the commission and the permit holder is not entitled to
       any refund or other compensation.
       (6) Except as provided in subdivision (8), the ownership of a
       permit may not be transferred.
       (7) A permit may not be transferred from the premises for which
       the permit was issued.
       (8) If the area in which the permit issued to a premises under this
       subsection (j) is located is no longer designated an economic
       development area, an area needing redevelopment, or a
       redevelopment district, a permit issued under this section may be
       renewed, and the ownership of the permit may be transferred, but
       the permit may not be transferred from the permit premises.
    (l) (j) Except as provided in section 16.3 of this chapter, the
commission may issue to the town of Syracuse not more than one (1)
new three-way permit under this subsection. (m) The following apply
to a permit issued under this subsection: (l):
       (1) An applicant for a permit under subsection (l) must be a
       proprietor, an owner or lessee, or both, of a restaurant located
       within an economic development area, an area needing
       redevelopment, or a redevelopment district as established under
       IC 36-7-14 in a municipality's:
          (A) downtown redevelopment district; or
          (B) downtown economic revitalization area.
       (2) The cost of an initial permit is forty thousand dollars
       ($40,000).
       (3) The total number of active permits issued under this
       subsection (l) may not exceed the one (1) new three-way permit.
       as set forth in that subsection.
       (4) The municipality may adopt an ordinance under
       IC 7.1-3-19-17 requiring a permit holder to enter into a formal
       written commitment as a condition of eligibility for a permit. As
       set forth in IC 7.1-3-19-17(b), a formal written commitment is
       binding on the permit holder and on any lessee or proprietor of
       the permit premises.
       (5) Notwithstanding IC 7.1-3-1.1, if business operations cease at
       the permit premises for more than six (6) months, the permit shall
       revert to the commission and the permit holder is not entitled to
       any refund or other compensation.
       (6) Except as provided in subdivision (8), the ownership of a
       permit may not be transferred.
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                                  27
     (7) A permit may not be transferred from the premises for which
     the permit was issued.
     (8) If the area in which the permit issued to a premises under this
     subsection (l) is located is no longer designated an economic
     development area, an area needing redevelopment, or a
     redevelopment district, a permit issued under this section may be
     renewed, and the ownership of the permit may be transferred, but
     the permit may not be transferred from the permit premises.
   (k) Except as provided in section 16.3 of this chapter, the
commission may issue to the city of Gary not more than ten (10)
new three-way permits under this subsection. The following apply
to a permit issued under this subsection:
     (1) An applicant for a permit must be a proprietor, an owner
     or lessee, or both, of a restaurant located within an economic
     development area, an area needing redevelopment, or a
     redevelopment district as established under IC 36-7-14 in a
     municipality's:
         (A) downtown redevelopment district; or
         (B) downtown economic revitalization area.
     (2) The cost of an initial permit is forty thousand dollars
     ($40,000).
     (3) The total number of active permits issued under this
     subsection may not exceed the ten (10) new three-way
     permits.
     (4) The municipality may adopt an ordinance under
     IC 7.1-3-19-17 requiring a permit holder to enter into a
     formal written commitment as a condition of eligibility for a
     permit. As set forth in IC 7.1-3-19-17(b), a formal written
     commitment is binding on the permit holder and on any lessee
     or proprietor of the permit premises.
     (5) Notwithstanding IC 7.1-3-1.1, if business operations cease
     at the permit premises for more than six (6) months, the
     permit shall revert to the commission and the permit holder
     is not entitled to any refund or other compensation.
     (6) Except as provided in subdivision (8), the ownership of a
     permit may not be transferred.
     (7) A permit may not be transferred from the premises for
     which the permit was issued.
     (8) If the area in which the permit issued to a premises under
     this subsection is located is no longer designated an economic
     development area, an area needing redevelopment, or a
     redevelopment district, a permit issued under this section may
HEA 1052 — CC 1
                                   28
      be renewed, and the ownership of the permit may be
      transferred, but the permit may not be transferred from the
      permit premises.
   (n) (l) Except as provided in section 16.3 of this chapter, the
commission may issue to the town of Schererville not more than three
(3) new three-way permits. The following applies to a permit issued
under this subsection:
      (1) An applicant for a permit must be a proprietor, an owner or
      lessee, or both, of a restaurant located within an economic
      development area, an area needing redevelopment, or a
      redevelopment district as established under IC 36-7-14 in the
      town's:
          (A) downtown redevelopment district; or
          (B) downtown economic revitalization area.
      (2) The cost of an initial permit is forty thousand dollars
      ($40,000).
      (3) The total number of active permits issued under this
      subsection may not exceed the three (3) new three-way permits.
      (4) The town may adopt an ordinance under IC 7.1-3-19-17
      requiring a permit holder to enter into a formal written
      commitment as a condition of eligibility for a permit. As set forth
      in IC 7.1-3-19-17(b), a formal written commitment is binding on
      the permit holder and on any lessee or proprietor of the permit
      premises.
      (5) Notwithstanding IC 7.1-3-1.1, if business operations cease at
      the permit premises for more than six (6) months, the permit shall
      revert to the commission and the permit holder is not entitled to
      any refund or other compensation.
      (6) Except as provided in subdivision (8), the ownership of the
      permit may not be transferred.
      (7) The permit may not be transferred from the premises for
      which the permit was issued.
      (8) If the area in which the permit issued to a premises is located
      is no longer designated an economic development area, an area
      needing redevelopment, or a redevelopment district, a permit
      issued under this section may be renewed, and the ownership of
      the permit may be transferred, but the permit may not be
      transferred from the permit premises.
   (o) (m) Except as provided in section 16.3 of this chapter, the
commission may issue to the city of Lafayette not more than three (3)
new three-way permits. The following apply to a permit issued under
this subsection:
HEA 1052 — CC 1
                                  29
     (1) An applicant for a permit must be a proprietor, an owner or
     lessee, or both, of a restaurant located within an economic
     development area, an area needing redevelopment, or a
     redevelopment district as established under IC 36-7-14 in the
     city's:
         (A) downtown redevelopment district; or
         (B) downtown economic revitalization area.
     (2) The cost of an initial permit is forty thousand dollars
     ($40,000).
     (3) The total number of active permits issued under this
     subsection may not exceed the three (3) new three-way permits.
     (4) The city may adopt an ordinance under IC 7.1-3-19-17
     requiring a permit holder to enter into a formal written
     commitment as a condition of eligibility for a permit. As set forth
     in IC 7.1-3-19-17(b), a formal written commitment is binding on
     the permit holder and on any lessee or proprietor of the permit
     premises.
     (5) Notwithstanding IC 7.1-3-1.1, if business operations cease at
     the permit premises for more than six (6) months, the permit shall
     revert to the commission and the permit holder is not entitled to
     any refund or other compensation.
     (6) Except as provided in subdivision (8), the ownership of the
     permit may not be transferred.
     (7) The permit may not be transferred from the premises for
     which the permit was issued.
     (8) If the area in which the permit issued to a premises is located
     is no longer designated an economic development area, an area
     needing redevelopment, or a redevelopment district, a permit
     issued under this section may be renewed, and the ownership of
     the permit may be transferred, but the permit may not be
     transferred from the permit premises.
   (p) (n) Except as provided in section 16.3 of this chapter, the
commission may issue to the city of West Lafayette not more than two
(2) new three-way permits. The following apply to a permit issued
under this subsection:
     (1) An applicant for a permit must be a proprietor, an owner or
     lessee, or both, of a restaurant located within an economic
     development area, an area needing redevelopment, or a
     redevelopment district as established under IC 36-7-14 in the
     city's:
         (A) downtown redevelopment district; or
         (B) downtown economic revitalization area.
HEA 1052 — CC 1
                                   30
      (2) The cost of an initial permit is forty thousand dollars
      ($40,000).
      (3) The total number of active permits issued under this
      subsection may not exceed the two (2) new three-way permits.
      (4) The city may adopt an ordinance under IC 7.1-3-19-17
      requiring a permit holder to enter into a formal written
      commitment as a condition of eligibility for a permit. As set forth
      in IC 7.1-3-19-17(b), a formal written commitment is binding on
      the permit holder and on any lessee or proprietor of the permit
      premises.
      (5) Notwithstanding IC 7.1-3-1.1, if business operations cease at
      the permit premises for more than six (6) months, the permit shall
      revert to the commission and the permit holder is not entitled to
      any refund or other compensation.
      (6) Except as provided in subdivision (8), the ownership of the
      permit may not be transferred.
      (7) The permit may not be transferred from the premises for
      which the permit was issued.
      (8) If the area in which the permit issued to a premises is located
      is no longer designated an economic development area, an area
      needing redevelopment, or a redevelopment district, a permit
      issued under this section may be renewed, and the ownership of
      the permit may be transferred, but the permit may not be
      transferred from the permit premises.
    (q) (o) Except as provided in section 16.3 of this chapter, the
commission may issue a new three-way permit to an applicant who is
a proprietor, as owner or lessee, or both, of a restaurant located within
a transit development district established under IC 36-7.5-4.5 and
located in the city of Michigan City. The commission may issue not
more than eight (8) new three-way permits under this subsection. The
following apply to a permit issued under this subsection:
      (1) The cost of an initial permit is forty thousand dollars
      ($40,000).
      (2) The total number of active permits issued under this
      subsection may not exceed the eight (8) new three-way permits.
      (3) The municipality may adopt an ordinance under
      IC 7.1-3-19-17 requiring a permit holder to enter into a formal
      written commitment as a condition of eligibility for a permit. As
      set forth in IC 7.1-3-19-17(b), a formal written commitment is
      binding on the permit holder and on any lessee or proprietor of
      the permit premises.
      (4) Notwithstanding IC 7.1-3-1.1, if business operations cease at
HEA 1052 — CC 1
                                  31
     the permit premises for more than six (6) months, the permit shall
     revert to the commission and the permit holder is not entitled to
     any refund or other compensation.
     (5) Except as provided in subdivision (7), the ownership of the
     permit may not be transferred.
     (6) The permit may not be transferred from the premises for
     which the permit was issued.
     (7) If the area in which the permit issued to a premises is located
     is no longer designated as part of a transit development district
     established under IC 36-7.5-4.5, a permit issued under this section
     may be renewed, and the ownership of the permit may be
     transferred, but the permit may not be transferred from the permit
     premises.
   (r) (p) Except as provided in section 16.3 of this chapter, the
commission may issue to the city of Delphi not more than two (2) new
three-way permits. The following apply to a permit issued under this
subsection:
     (1) An applicant for a permit must be a proprietor, an owner or
     lessee, or both, of a restaurant located within an economic
     development area, an area needing redevelopment, or a
     redevelopment district as established under IC 36-7-14 in the
     city's:
         (A) downtown redevelopment district; or
         (B) downtown economic revitalization area.
     (2) The cost of an initial permit is forty thousand dollars
     ($40,000).
     (3) The total number of active permits issued under this
     subsection may not exceed the two (2) new three-way permits.
     (4) The city may adopt an ordinance under IC 7.1-3-19-17
     requiring a permit holder to enter into a formal written
     commitment as a condition of eligibility for a permit. As set forth
     in IC 7.1-3-19-17(b), a formal written commitment is binding on
     the permit holder and on any lessee or proprietor of the permit
     premises.
     (5) Notwithstanding IC 7.1-3-1.1, if business operations cease at
     the permit premises for more than six (6) months, the permit shall
     revert to the commission and the permit holder is not entitled to
     any refund or other compensation.
     (6) Except as provided in subdivision (8), the ownership of the
     permit may not be transferred.
     (7) The permit may not be transferred from the premises for
     which the permit was issued.
HEA 1052 — CC 1
                                   32
      (8) If the area in which the permit issued to a premises is located
      is no longer designated an economic development area, an area
      needing redevelopment, or a redevelopment district, a permit
      issued under this section may be renewed, and the ownership of
      the permit may be transferred, but the permit may not be
      transferred from the permit premises.
   (s) (q) Except as provided in section 16.3 of this chapter, the
commission may issue to the city of Bloomington not more than two (2)
new three-way permits. The following apply to a permit issued under
this subsection:
      (1) An applicant for a permit must be a proprietor, an owner or
      lessee, or both, of a restaurant located within an economic
      development area, an area needing redevelopment, or a
      redevelopment district as established under IC 36-7-14 in the
      city's:
          (A) downtown redevelopment district; or
          (B) downtown economic revitalization area.
      (2) The cost of an initial permit is forty thousand dollars
      ($40,000).
      (3) The total number of active permits issued under this
      subsection may not exceed the two (2) new three-way permits.
      (4) The city may adopt an ordinance under IC 7.1-3-19-17
      requiring a permit holder to enter into a formal written
      commitment as a condition of eligibility for a permit. As set forth
      in IC 7.1-3-19-17(b), a formal written commitment is binding on
      the permit holder and on any lessee or proprietor of the permit
      premises.
      (5) Notwithstanding IC 7.1-3-1.1, if business operations cease at
      the permit premises for more than six (6) months, the permit shall
      revert to the commission and the permit holder is not entitled to
      any refund or other compensation.
      (6) Except as provided in subdivision (8), the ownership of the
      permit may not be transferred.
      (7) The permit may not be transferred from the premises for
      which the permit was issued.
      (8) If the area in which the permit issued to a premises is located
      is no longer designated an economic development area, an area
      needing redevelopment, or a redevelopment district, a permit
      issued under this section may be renewed, and the ownership of
      the permit may be transferred, but the permit may not be
      transferred from the permit premises.
   SECTION 34. IC 7.1-3-22-4.7 IS ADDED TO THE INDIANA
HEA 1052 — CC 1
                                   33
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2026]: Sec. 4.7. (a) Notwithstanding section
4(a) through 4(c) of this chapter, the commission may issue a beer
dealer's permit, wine dealer's permit, and liquor dealer's permit to
a drug store operated in the city of Westfield.
    (b) Notwithstanding section 4(a) through 4(c) of this chapter, the
commission may issue a beer dealer's permit and wine dealer's
permit to a convenience store operated in the town of Sellersburg.
    (c) The following apply to a permit issued under subsection (a)
or (b):
      (1) The combined initial permit cost is forty thousand dollars
      ($40,000).
      (2) A permit may not be transferred from the premises for
      which the permit was issued.
      (3) The ownership of a permit may be transferred with
      approval from the commission.
      (4) Each permit is subject to the requirements applicable to
      the permit type.
    SECTION 35. IC 7.1-5-6-3, AS AMENDED BY P.L.32-2019,
SECTION 14, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 3. (a) It is unlawful for a person to act as a clerk
in a package liquor store, or as a bartender, waiter, waitress, security,
bouncer, or manager for a retailer permittee unless that person has
applied for and been issued the appropriate permit. This section does
not apply to dining car or boat employees, to a person described in
IC 7.1-3-1.7, or to a person described in IC 7.1-3-18-9(d). A person
who knowingly or intentionally violates this subsection commits a
Class C infraction. However, the violation is a Class B misdemeanor
if the person has a prior unrelated adjudication or conviction for a
violation of this section within the previous five (5) years.
    (b) It is a defense to a charge under this section if, not later than
thirty (30) days after being cited by the commission, the person who
was cited produces evidence that the appropriate permit was issued by
the commission on the date of the citation.
    (c) It is a defense to a charge under this section for a new applicant
for a permit if, not later than thirty (30) days after being cited by the
commission, the new applicant who was cited produces a receipt for a
cashier's check or money order showing that an application for the
appropriate permit was applied for on the date of the citation.
    SECTION 36. IC 7.1-5-7-11, AS AMENDED BY SEA 23-2026,
SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 11. (a) The provisions of sections 9 and 10 of this
HEA 1052 — CC 1
                                    34
chapter shall not apply if the public place involved is one (1) of the
following:
     (1) Civic center.
     (2) Convention center.
     (3) Sports arena.
     (4) Bowling center.
     (5) Bona fide club.
     (6) Drug store.
     (7) Grocery store.
     (8) Boat.
     (9) Dining car.
     (10) Pullman car.
     (11) Club car.
     (12) Passenger airplane.
     (13) Horse racetrack facility holding a recognized meeting permit
     under IC 4-31-5.
     (14) Satellite facility (as defined in IC 4-31-2.1-36).
     (15) Catering hall under IC 7.1-3-20-24 that is not open to the
     public.
     (16) That part of a restaurant which is separate from a room in
     which is located a bar over which alcoholic beverages are sold or
     dispensed by the drink.
     (17) Entertainment complex.
     (18) Indoor golf facility.
     (19) A recreational facility such as a golf course, bowling center,
     or similar facility that has the recreational activity and not the sale
     of food and beverages as the principal purpose or function of the
     person's business.
     (20) A licensed premises owned or operated by a postsecondary
     educational institution described in IC 21-17-6-1.
     (21) An automobile racetrack.
     (22) An indoor theater under IC 7.1-3-20-26.
     (23) A senior residence facility campus (as defined in
     IC 7.1-3-1-29(c)) at which alcoholic beverages are given or
     furnished as provided under IC 7.1-3-1-29.
     (24) A hotel other than a part of a hotel that is a room in a
     restaurant in which a bar is located over which alcoholic
     beverages are sold or dispensed by the drink.
     (25) The location of an allowable event to which IC 7.1-3-6.1
     applies.
     (26) The location of a charity auction to which IC 7.1-3-6.2
     applies.
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                               35
   (27) A tour of a brewery as provided in IC 7.1-3-20-16.4, if the
   minor is in the company of a parent, legal guardian or custodian,
   or family member who is at least twenty-one (21) years of age.
   (28) A farm winery and any additional locations of the farm
   winery under IC 7.1-3-12, if the minor is in the company of a
   parent, legal guardian or custodian, or family member who is at
   least twenty-one (21) years of age and the minor is accompanied
   by the adult in any area that the adult may be present whether or
   not the area:
       (A) is separated in any manner from where the wine is
       manufactured, sold, or consumed within the farm winery
       premises; or
       (B) operates under a retailer's permit.
   (29) An artisan distillery under IC 7.1-3-27, if:
       (A) the person who holds the artisan distiller's permit also
       holds a farm winery permit under IC 7.1-3-12, or
       IC 7.1-3-20-16.4(a) applies to the person; and
       (B) the minor is in the company of a parent, legal guardian or
       custodian, or family member who is at least twenty-one (21)
       years of age.
   (30) An art instruction studio under IC 7.1-5-8-4.6.
   (31) The licensed premises of a food hall under IC 7.1-3-20-29
   and the food and beverage vending space of a food hall vendor
   permittee under IC 7.1-3-20-30. However, sections 9 and 10 of
   this chapter apply to a bar within the food and beverage vending
   space of a food hall vendor permittee under IC 7.1-3-20-30 that
   serves alcoholic beverages intended to be consumed while sitting
   or standing at the bar.
   (32) A refreshment area designated under IC 7.1-3-31.
   (33) A small brewery under IC 7.1-3-2-7(5) and a restaurant of
   which the small brewery permit holder is the proprietor as
   provided in IC 7.1-3-2-7(5)(B), if the minor is accompanied by a
   parent, legal guardian, custodian, or family member who is at
   least twenty-one (21) years of age. The minor may be in any area
   in which the accompanying adult may be present, whether or not
   the area:
       (A) is separated in any manner from where the beer is
       manufactured, sold, or consumed within the small brewery
       premises; or
       (B) operates under a retailer's permit as provided in
       IC 7.1-3-2-7(5)(C).
   (34) The state fair under IC 7.1-3-21-14.
HEA 1052 — CC 1
                                   36
      (35) A county fair issued a permit under IC 7.1-3-21-14.5.
      (36) A restaurant that satisfies the gross food sales
      requirement provided in IC 7.1-3-20-14.
   (b) For the purpose of this subsection, "food" means meals prepared
on the licensed premises. It is lawful for a minor to be on licensed
premises in a room, outdoor patio, or terrace in which is located a bar
over which alcoholic beverages are sold or dispensed by the drink if all
the following conditions are met:
      (1) The minor is in the company of a parent, guardian, or family
      member who is at least twenty-one (21) years of age.
      (2) The purpose for being on the licensed premises is the
      consumption of food and not the consumption of alcoholic
      beverages.
      (3) The minor, accompanied by the parent, guardian, or family
      member who is at least twenty-one (21) years of age, must be
      seated at a table or booth in the bar area and shall not be seated at
      the bar over which alcoholic beverages are sold or dispensed by
      the drink.
   SECTION 37. IC 7.1-5-8-1 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2026]: Sec. 1. It is a Class C
misdemeanor for a person to recklessly hinder, obstruct, interfere with,
or prevent the observance or enforcement of any of the following:
      (1) A provision of this title.
      (2) A rule or regulation of the commission adopted in the
      administration of this title.
      (3) An order of the commission to suspend or revoke a permit
      or certificate issued under this title.
   SECTION 38. IC 15-19-2-3, AS ADDED BY P.L.2-2008,
SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 3. The Indiana standardbred advisory board
consists of seven (7) members selected as follows:
      (1) The chairman of the Indiana horse racing commission, or the
      chairman's designee, is an ex officio member.
      (2) Two (2) members who are members of county fair boards
      racing participants, appointed by the governor.
      (3) Four (4) members appointed by the governor who have in the
      past participated or shown an interest in the standardbred
      industry. This interest may, but does not necessarily have to be,
      evidenced by virtue of being an owner, driver, veterinarian,
      trainer, or breeder.
Not more than three (3) of the appointees under subdivisions (2) and
(3) may be of the same political party as the chairman of the Indiana
HEA 1052 — CC 1
                                   37
horse racing commission.
   SECTION 39. IC 35-45-5-4.5, AS ADDED BY P.L.70-2005,
SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 4.5. (a) A prosecuting attorney may send written
notice to an operator described in section 2(c) or 3(b) of this chapter.
The notice must:
      (1) specify the illegal gambling activity;
      (2) state that the operator has not more than thirty (30) days after
      the date the notice is received to remove the illegal gambling
      activity; and
      (3) state that failure to remove the illegal gambling activity not
      more than thirty (30) days after receiving the notice may result in
      the filing of criminal charges against the operator.
A prosecuting attorney who sends a notice under this section shall
forward a copy of the notice to the attorney general. The attorney
general shall maintain a depository to collect, maintain, and retain each
notice sent under this section.
   (b) The manner of service of a notice under subsection (a) must be:
      (1) in compliance with Rule 4.1, 4.4, 4.6, or 4.7 of the Indiana
      Rules of Trial Procedure; or
      (2) by publication in compliance with Rule 4.13 of the Indiana
      Rules of Trial Procedure if service cannot be made under
      subdivision (1) after a diligent search for the operator.
   (c) A notice served under subsection (a):
      (1) is admissible in a criminal proceeding under this chapter; and
      (2) constitutes prima facie evidence that the operator had
      knowledge that illegal gambling was occurring on the operator's
      Internet site.
   (d) A person outside Indiana who transmits information on a
computer network (as defined in IC 35-43-2-3) and who knows or
should know that the information is broadcast in Indiana submits to the
jurisdiction of Indiana courts for prosecution under this section.
   SECTION 40. IC 35-45-6-1, AS AMENDED BY P.L.186-2025,
SECTION 240, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2026]: Sec. 1. (a) The definitions in this section
apply throughout this chapter.
   (b) "Documentary material" means any document, drawing,
photograph, recording, or other tangible item containing compiled data
from which information can be either obtained or translated into a
usable form.
   (c) "Enterprise" means:
      (1) a sole proprietorship, corporation, limited liability company,
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                                   38
      partnership, business trust, or governmental entity; or
      (2) a union, an association, or a group, whether a legal entity or
      merely associated in fact.
   (d) "Pattern of racketeering activity" means engaging in at least two
(2) incidents of racketeering activity that have the same or similar
intent, result, accomplice, victim, or method of commission, or that are
otherwise interrelated by distinguishing characteristics that are not
isolated incidents. However, the incidents are a pattern of racketeering
activity only if at least one (1) of the incidents occurred after August
31, 1980, and if the last of the incidents occurred within five (5) years
after a prior incident of racketeering activity.
   (e) "Racketeering activity" means to commit, to attempt to commit,
to conspire to commit a violation of, or aiding and abetting in a
violation of any of the following:
      (1) A provision of IC 23-19, or of a rule or order issued under
      IC 23-19.
      (2) A violation of IC 35-45-9.
      (3) A violation of IC 35-47.
      (4) A violation of IC 35-49-3.
      (5) Murder (IC 35-42-1-1).
      (6) Battery as a Class C felony before July 1, 2014, or a Level 5
      felony after June 30, 2014 (IC 35-42-2-1).
      (7) Kidnapping (IC 35-42-3-2).
      (8) Human and sexual trafficking crimes (IC 35-42-3.5).
      (9) Child exploitation (IC 35-42-4-4).
      (10) Robbery (IC 35-42-5-1).
      (11) Carjacking (IC 35-42-5-2) (before its repeal).
      (12) Arson (IC 35-43-1-1).
      (13) Burglary (IC 35-43-2-1).
      (14) Theft (IC 35-43-4-2).
      (15) Receiving stolen property (IC 35-43-4-2) (before its
      amendment on July 1, 2018).
      (16) Forgery (IC 35-43-5-2).
      (17) An offense under IC 35-43-5.
      (18) Bribery (IC 35-44.1-1-2).
      (19) Official misconduct (IC 35-44.1-1-1).
      (20) Conflict of interest (IC 35-44.1-1-4).
      (21) Perjury (IC 35-44.1-2-1).
      (22) Obstruction of justice (IC 35-44.1-2-2).
      (23) Intimidation (IC 35-45-2-1).
      (24) Promoting prostitution (IC 35-45-4-4).
      (25) Professional gambling (IC 35-45-5-3).
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                                   39
     (26) Maintaining a professional gambling site (IC
     35-45-5-3.5(b)).
     (27) Promoting professional gambling (IC 35-45-5-4).
     (28) Dealing in or manufacturing cocaine or a narcotic drug (IC
     35-48-4-1).
     (29) Dealing in methamphetamine (IC 35-48-4-1.1).
     (30) Manufacturing methamphetamine (IC 35-48-4-1.2).
     (31) Dealing in a schedule I, II, or III controlled substance (IC
     35-48-4-2).
     (32) Dealing in a schedule IV controlled substance (IC
     35-48-4-3).
     (33) Dealing in a schedule V controlled substance (IC 35-48-4-4).
     (34) Dealing in marijuana, hash oil, hashish, or salvia (IC
     35-48-4-10).
     (35) Money laundering (IC 35-45-15-5).
     (36) A violation of IC 35-47.5-5.
     (37) A violation of any of the following:
         (A) IC 23-14-48-9.
         (B) IC 30-2-9-7(b).
         (C) IC 30-2-10-9(b).
         (D) IC 30-2-13-38(f).
     (38) Practice of law by a person who is not an attorney (IC
     33-43-2-1).
     (39) An offense listed in IC 35-48-4 involving the manufacture or
     sale of a synthetic drug (as defined in IC 35-31.5-2-321), a
     synthetic drug lookalike substance (as defined in
     IC 35-31.5-2-321.5 (before its repeal on July 1, 2019)) under
     IC 35-48-4-10.5 (before its repeal on July 1, 2019), a controlled
     substance analog (as defined in IC 35-48-1.1-8), or a substance
     represented to be a controlled substance (as described in
     IC 35-48-4-4.6).
     (40) Dealing in a controlled substance resulting in death (IC
     35-42-1-1.5).
     (41) Organized retail theft (IC 35-43-4-2.2).
     (42) Sale of alcohol without a permit (IC 7.1-5-10-5).
   SECTION 41. IC 35-46-6-3, AS AMENDED BY P.L.163-2025,
SECTION 68, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 3. (a) A person who knowingly or intentionally
uses or distributes nitrous oxide with intent to cause a condition of
intoxication, euphoria, excitement, exhilaration, stupefaction, or
dulling of the senses of another person, unless the nitrous oxide is to be
used for medical purposes, commits a Class B misdemeanor. However,
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                                   40
the offense is a Class A misdemeanor if the person has a prior
unrelated conviction under this section.
    (b) Except as provided in subsection (c), a person who knowingly
or intentionally sells, uses, or distributes flavored nitrous oxide
commits a Class B misdemeanor. However, the offense is a Class A
misdemeanor if the person has a prior unrelated conviction under this
section.
    (c) The prohibition on the sale, use, or distribution of flavored
nitrous oxide in subsection (b) does not apply to:
      (1) a retail or wholesale restaurant supply company that sells or
      distributes flavored nitrous oxide to a person for use in food and
      beverage preparation or other culinary purposes; or
      (2) a person that uses flavored nitrous oxide in food and beverage
      recipes or for other legitimate culinary purposes; or
      (3) a law enforcement agency that is disposing of flavored
      nitrous oxide by donation to a nonprofit organization.
    SECTION 42. IC 35-47-2.5-4, AS AMENDED BY P.L.190-2006,
SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 4. (a) This section does not apply to an item
defined as an antique firearm pursuant to 18 U.S.C. 921(a)(16).
    (b) A dealer may not sell, rent, trade, or transfer from the dealer's
inventory a handgun to a person until the dealer has done all of the
following:
      (1) Obtained from the prospective purchaser a completed and
      signed Form 4473 as specified in section 3 of this chapter.
      (2) Contacted NICS:
          (A) by telephone; or
          (B) electronically;
      to request a background check on the prospective purchaser.
      (3) Received authorization from NICS to transfer the handgun to
      the prospective purchaser.
    (b) (c) The dealer shall record the NICS transaction number on
Form 4473 and retain Form 4473 for auditing purposes.
    SECTION 43. An emergency is declared for this act.
HEA 1052 — CC 1
Speaker of the House of Representatives
President of the Senate
President Pro Tempore
Governor of the State of Indiana
Date:  Time:
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