Alcoholic Beverages for Carry-Out

On July 1, 2024, there will be a bundle of new laws that become effective in Indiana. Read about some of the most interesting ones here.  One of these new laws is the ability for restaurants, bars, or retailers to sell alcoholic beverages for carry-out. Yes, that’s right, a person will be able to order cocktails to-go. However, this new law could bring up some initial questions and future litigation around liability. Traditional thinking would put the liability on the restaurant if something were to happen if a customer were to take a cocktail to-go. The new bill dives into liability as well as certain guidelines that need to be followed for a restaurant or retailer to qualify.

The plain language of House Bill 1086 states: a bar or restaurant is allowed to prepare, sell, and deliver alcoholic beverages for carry-out to a customer on the licensed premises in sealed, nonoriginal containers. Additionally, it requires that after June 30, 2024, a bar or restraint must carry liquor liability insurance or an endorsement with coverage of at least $500,000 to obtain or renew a retailer’s or craft manufacturer’s permit and if an establishment operates under both a retailer’s permit and a craft manufacturer’s permit, the insurance coverage requirements apply to the establishment and not to each permit individually. The insurance coverage requirement must be compliant not later than January 1, 2025, for a permit issued before July 1, 2024. House Bill 1086 does still have some prohibitions on retailers.

The bill explicitly lays out a couple prohibitions. The first, not allowing games on the licensed premises that are determined by the quantity of alcoholic beverages consumed and games that award alcoholic beverage prizes, unless the alcohol beverages are charity gaming prizes or sold in a charity auction event. The second prohibition is that a retailer cannot sell or serve an unlimited or indefinite amount of alcoholic beverages for a fixed price. Along with these prohibitions, the bill also specifies that the Alcohol and Tobacco Commission (ATC) may revoke the privilege of selling alcoholic beverages, either in qualified containers for carry-out or for a reduced/increased price, if the ATC determines that a retailer has violated certain conditions of the law.

If you have any questions or want assistance with alcohol beverage sales for your business, please reach out to one of our attorneys at McNeelyLaw LLP by calling (317)825-5110.

This McNeelyLaw LLP publication should not be construed as legal advice or legal opinion of any specific facts or circumstances. The contents are intended for general informational purposes only, and you are urged to consult your own lawyer on any specific legal questions you may have concerning your situation.