SB 5

           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. 5
   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 7.1-2-9 IS ADDED TO THE INDIANA CODE AS
A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2026]:
   Chapter 9. Permittee Qualifications
   Sec. 1. The commission shall consider the following in
determining an applicant's or a permittee's eligibility to hold,
renew, or continue to hold a retailer's permit under IC 7.1-3:
     (1) Whether the acts or conduct of the applicant or permittee
     and its employees or agents would constitute action or
     conduct prohibited under IC 35-41 or federal law.
     (2) The esteem in which the applicant or permittee is held by
     members of its community.
     (3) An assessment of the applicant's or the permittee's
     character as can be reasonably inferred from police reports,
     evidence submitted in court and commission proceedings,
     public records, and other sources of information permitted
     under IC 7.1-3-19.
   Sec. 2. (a) If a licensed premises becomes:
     (1) a public nuisance (as defined in IC 7.1-1-3-33); or
     (2) the scene of acts or conduct prohibited under IC 35-41 or
     federal law;
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the commission may impose the sanctions in IC 7.1-2-6 on the
licensed premises.
    (b) The commission is not required to determine beyond a
reasonable doubt that an act or conduct would constitute conduct
prohibited under IC 35-41 or federal law.
    (c) The commission may refuse to grant or renew a permit,
suspend or revoke a permit, or fine a permittee for a violation
described in subsection (a).
    Sec. 3. (a) The commission, upon application for a new permit
or for a transfer of the location of an existing permit, shall
investigate the desirability of the permit in regard to the
geographical location of the potential licensed premises. The
commission may consider the following factors:
      (1) The need for permitted services at the potential licensed
      premises.
      (2) The desire of the neighborhood or community to receive
      permitted services.
      (3) The impact of permitted services on other businesses in the
      neighborhood or community.
      (4) The impact of permitted services on the neighborhood or
      community.
    (b) The commission may not consider the factors in subsection
(a) when evaluating an application for a renewal of a permit.
    SECTION 2. IC 7.1-3-23-7 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2026]: Sec. 7. (a) Except as
provided in subsection (b) and section 7.5 of this chapter, the
commission, after notice and hearing, and for cause other than that
expressly provided in this title, may suspend a permit to manufacture,
transport or sell alcoholic beverages for not longer than thirty (30) days
for the violation of a provision of this title, or for the failure or the
refusal to comply with a rule or regulation of the commission.
    (b) This subsection applies to an individual charged with a Class B
misdemeanor for violating IC 7.1-5-10-15(a). Upon receiving notice of
charges filed under IC 7.1-5-10-15(a), the commission:
      (1) shall hold a hearing under section 6 of this chapter; and
      (2) may suspend the permit of the individual charged with the
      violation until disposition of the charges.
    SECTION 3. IC 7.1-3-23-7.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2026]: Sec. 7.5. (a) The chairman of the
commission may suspend an alcoholic beverage retail permit
without advance notice or a hearing for a period of not longer than
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three (3) business days if all of the following apply:
     (1) The chairman has a reasonable belief that a felony has
     been committed on the licensed premises.
     (2) The permit holder failed to take reasonable action to
     prevent the occurrence of a crime.
     (3) Multiple crimes or violations have occurred on the
     licensed premises in the last twelve (12) months.
     (4) The continued operation of the licensed premises would
     pose a clear and immediate danger to the safety of the
     surrounding community or general public.
   (b) Upon the suspension of a permit under subsection (a), the
commission shall:
     (1) give immediate notice to the permittee of:
         (A) a factual basis for the suspension; and
         (B) the time and place of a hearing on the suspension; and
     (2) hold the hearing not later than three (3) business days
     after the permit is suspended.
   (c) The commission is not required to consider or prove the
factors in subsection (a) to declare a public nuisance under
IC 7.1-2-6.
   SECTION 4. [EFFECTIVE JULY 1, 2026] (a) 905 IAC 1-27 is
void. The publisher of the Indiana Administrative Code and
Indiana Register shall remove this rule from the Indiana
Administrative Code.
   (b) This SECTION expires July 1, 2027.
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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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