New Indiana Liquor Laws Take Effect July 1

There are several changes to Indiana’s laws regarding liquor sales that will become effective on July 1, 2024. The Terre Haute Chamber of Commerce would like to make sure our members stay in compliance with these new laws and take full advantage of the additional opportunities. Please make sure you read the changes below. 

Happy HourHB 1086 authorizes retail permit holders and craft manufacturer permit holders the ability to reduce the price of an alcoholic beverage during part of the day. Previously, “Happy Hour” specials were not permitted. However, this law comes with some parameters. They are as follows: 

  • A price reduction cannot exceed 4 hours in one day and 15 hours in 1 week. Hours may be divided by the permit holder in any manner (does not have to be consecutive). 
  • A price reduction cannot be made after 9:00 pm. 
  • No games or contests where the outcome is determined by the quantity of alcoholic beverages consumed or where alcoholic beverages are awarded as prizes. 
  • No two-for-one drink specials. 
  • No bottomless drink specials. 
  • This law preserves the ability of an establishment to offer “all-day” drink specials. 
  • It also preserves the ability for hotels to provide alcoholic beverages to customers for no additional cost (i.e. welcome drinks, drinks in the lobby, etc.). 

Cocktails-To-GoHB 1086 allows retail permit holders and craft manufacturer permit holders the ability to sell alcoholic beverages for carryout/to-go in the non-original container. 

The container must be considered a “qualified container” under the law which means a new, clean, sealable container that has a liquid capacity of not more than 4 quarts after it is filled is sealed with a device or material that is used to fully close off the container securely without any perforations or straw holes. A permit holder is not permitted to deliver a cocktail-to-go.

Liquor Liability Insurance RequirementHB 1086 requires that retail permit holders and craft manufacturer permit holders must have a liquor liability insurance policy that has total coverage of at least $500,000 or a liquor liability endorsement to a general liability insurance policy that has total coverage of at least $500,000. 

Beginning on July 1, 2024, this insurance coverage will be required to obtain or maintain an alcohol permit. If the permit holder already has an active permit that was issued before July 1, then the permit holder must comply with the insurance requirement no later than January 1, 2025.