SB 89

           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,
additions will appear in this style type, and deletions will appear in this style type.
  Additions: Whenever a new statutory provision is being enacted (or a new constitutional
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.
      SENATE ENROLLED ACT No. 89
   AN ACT to amend the Indiana Code concerning alcohol and
tobacco.
    Be it enacted by the General Assembly of the State of Indiana:
    SECTION 1. IC 7.1-3-20-16.8, AS AMENDED 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
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     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 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 7.1-3-1-3.5 and 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
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       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 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):
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      (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
          (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 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
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         (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 (h)
     may not exceed the two (2) 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 (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) 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 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 subsection (j)
     may not exceed the three (3) new three-way permits, as set forth
     in that subsection.
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     (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 (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) 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 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 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.
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     (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 (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.
   (n) 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.
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     (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) 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:
     (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,
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      and the ownership of the permit may be transferred, but the
      permit may not be transferred from the permit premises.
    (p) 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.
      (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) 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
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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 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 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) 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
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     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.
   (s) 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.
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   (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 2. An emergency is declared for this act.
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President of the Senate
President Pro Tempore
Speaker of the House of Representatives
Governor of the State of Indiana
Date:  Time:
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