Section 7.1-3-20-9.5 - Restaurant carryout sales; eligibility(a) This section applies only to a retailer's permit for a restaurant.(b) This section does not apply to a retailer's permit that is issued or transferred to the following:(1) A city market under IC 7.1-3-20-25.(2) A marina under IC 7.1-3-1-25.(3) A state park under IC 7.1-3-17.8.(5) A hotel or resort hotel.(6) A social or fraternal club.(7) A restaurant, the proprietor of which is the holder of: (A) a brewer's permit under IC 7.1-3-2-7(5);(B) a farm winery permit under IC 7.1-3-12-5; or(C) an artisan distiller's permit under IC 7.1-3-27-8.(8) A specialty or gourmet market (as defined in IC 7.1-1-3-45.5). This exception applies only to a retailer's permit with carryout privileges that was initially issued in September 2019.(c) Except as provided in subsections (d) and (e), after May 14, 2017, a retailer permittee may not sell alcoholic beverages for carryout unless at least sixty percent (60%) of the retailer permittee's gross retail income from the sale of alcoholic beverages is derived from the sale of alcoholic beverages for consumption on the licensed premises.(d) This subsection applies only to a retailer's permit with carryout privileges that was issued to the current permit holder before November 1, 2016. Notwithstanding IC 7.1-3-1-1.5, a retailer permittee may continue to sell carryout after May 14, 2017, and is not required to comply with the gross retail income requirements.(e) This subsection applies to a retailer's permit with carryout privileges that was initially:(2) transferred to the premises location; after October 31, 2016, and before May 15, 2017. Notwithstanding IC 7.1-3-1-1.5, a retailer permittee may continue to sell carryout after May 14, 2017, and is not required to comply with the gross retail income requirements until the retailer's permit is renewed. A retailer permittee may be issued a letter of extension, and subsequent renewals of the extension under IC 7.1-3-1-3.1 but the permit term may not be extended past April 1, 2018. A retailer permittee may continue to sell carryout while the extension is in effect. If the permit is transferred as to ownership or to a location that is not exempt under subsection (b), the gross retail income requirements of this section apply upon transfer of the permit.
(f) Except for a retailer permittee described in subsection (d), a retailer permittee that has carryout privileges must apply for renewal of the carryout privileges when applying for renewal of the retailer's permit. The retailer permittee must provide the commission with a financial statement with information that shows the dollar amounts and percentages of the retailer permittee's gross retail income that is derived from sales of alcoholic beverages: (1) for consumption on the licensed premises; and(2) for carryout; during the one hundred eighty (180) days preceding the date of the application for renewal.
(g) For subsequent applications for renewal, the commission may allow a retailer permittee to submit to the commission an affidavit of compliance that is signed by the permittee, or by a responsible officer or partner, under the penalties of perjury, that states that the requirements of subsection (c) continue to be met. If the commission has reasonable grounds to doubt the truthfulness of an affidavit of compliance, the commission may require the retailer permittee to provide audited financial statements.(h) If an applicant for renewal of carryout privileges does not meet the requirements of subsection (c) and the commission denies the application, the applicant may apply for a reinstatement of carryout privileges with the permittee's next application for renewal of the retailer's permit that is made in accordance with subsection (i).(i) An applicant: (1) for a retailer's permit and carryout privileges that has not opened for business; or(2) for carryout privileges that:(A) is the holder of a retailer's permit for an operating business; and(B) has had the previous application for carryout privileges or renewal of carryout privileges denied by the commission; must provide the commission with a verified certification stating that the projected gross retail income from alcoholic beverage sales during the business's first two (2) years of operations with carryout privileges will meet the requirements of subsection (c). Not more than one hundred eighty (180) days after the date the applicant begins or resumes alcoholic beverage sales with carryout privileges, the applicant shall provide a financial statement with sufficient information to show that during the first one hundred twenty (120) days of business operations with carryout privileges, sixty percent (60%) of the gross retail income from all alcoholic beverage sales was derived from sales of alcoholic beverages for consumption on the premises.
(j) The commission may:(1) require that a financial statement submitted by an applicant under this chapter be audited by a certified public accountant; and(2) with the cooperation of the department of state revenue, verify the information provided by the applicant.(k) The information provided to the commission under this chapter regarding gross retail income is confidential information and may not be disclosed to the public under IC 5-14-3. However, the commission may disclose the information:(1) to the department of state revenue to verify the accuracy of the amount of gross retail income from sales of alcoholic beverages; and(2) in any administrative or judicial proceeding to revoke or suspend the holder's permit as a result of a discrepancy in the amount of gross retail income from sales of alcoholic beverages discovered by the department of state revenue.(l) Notwithstanding IC 6-8.1-7-1 or any other law, in fulfilling its obligations under this section, the department of state revenue may provide confidential information to the commission. The commission shall maintain the confidentiality of information provided by the department of state revenue under this chapter. However, the commission may disclose the information in any administrative or judicial proceeding to revoke or suspend the holder's permit as a result of any information provided by the department of state revenue.(m) If the commission does not grant or renew a retailer permittee's carryout privileges, the denial shall not affect the other rights, privileges, and restrictions of the retailer's permit, including the retailer permittee's ability to sell alcoholic beverages for on-premises consumption.Amended by P.L. 13-2024,SEC. 2, eff. 7/1/2024.Amended by P.L. 285-2019,SEC. 33, eff. 7/1/2019.Amended by P.L. 279-2019,SEC. 6, eff. 7/1/2019.Amended by P.L. 86-2018,SEC. 117, eff. 3/15/2018.Added by P.L. 270-2017,SEC. 11, eff. 5/2/2017.