in-20260902-IR-905250807RAA: Regulatory Analysis — 905 IAC (LSA #250807)

TITLE 905 ALCOHOL AND TOBACCO COMMISSION Readoption Review LSA Document #25-807

II. Rationale for the Continued Need for the Rule

Rule Readoptions Enforcement 905 IAC 1-8 Salesman's Permit Enforceable by process of the Commission 905 IAC 1-11.1 Temporary Beer/Wine Permit Fees Enforceable by process of the Commission 905 IAC 1-15.3 Minors as Employees Enforceable by ISEP inspection 905 IAC 1-29 Selling of Package Alcoholic Beverages by Retail Permittee Enforceable by ISEP inspection 905 IAC 1-32.1 Group Purchasing Agreements Enforceable by industry process and by ISEP inspection 905 IAC 1-35.1-1; 905 IAC 1-35.1-2; 905 IAC 1-35.1-4 through 905 IAC 1-35.1-9 Auto Race Tracks Enforceable by process of the Commission and ISEP inspection 905 IAC 1-47 Municipal Riverfront Development Projects Enforceable by process of the Commission and by ISEP inspection 905 IAC 1-52 Posting Signs Authorized by IC 7.1-3-1-28 Enforceable by process of the Commission and ISEP inspection 905 IAC 1-53 Type II Gaming Enforceable by process of the Commission, by industry process, and ISEP inspection

IV. Cost-Benefit, Economic Impact, Fiscal Impact or Regulatory Burden Statement

Rule Readoptions Estimated # of Impacted Parties 905 IAC 1-8 Salesman's Permits 3,440 salesman's permits 905 IAC 1-1-11.1 Temporary Beer/Wine Permit Fees 5,742 temporary beer/wine permits were issued in calendar 2025; 2,458 temporary beer/wine permits have been issued in 2026 to date 905 IAC 1-15.3 Minors as Employees 3,465 non-package liquor store dealer permittees 905 IAC 1-29 Selling of Package Alcoholic Beverages by Retail Permittee 2,877 retailers with carryout 905 IAC 1-32.1 Group Purchasing Agreements 815 retailers 905 IAC 1-35.1 Auto Race Tracks (Excluding 905 IAC 1-35.1-3 - Ownership of Permit) 4 Auto Race Track Permits 905 IAC 1-47 Municipal Riverfront Development Projects 473 Municipal Riverfront Development Permits 905 IAC 1-52 Posting Signs Authorized by IC 7.1-3-1-28 In 2025, this impacted 1,229 permittees 905 IAC 1-53 Type II Gaming 1,286 type II gaming endorsements Rule Repeals Number of Impacted Parties 905 IAC 1-23 Registration of Brands, Labels and Trademarks 456 Indiana permittees; 908 out-of-state permittees 905 IAC 1-35.1-3 Ownership of Permit 4 905 IAC 1-44 Revocation of Denied Permit 27 denied renewals in FY 26 905 IAC 1-46 Tobacco Retail Sales Certificate 8,187 V. Alternative Methods of Achieving the Purpose of the Rule VI. Complaints and Comments VII. Difficulties Encountered VIII. Changes in Technology, Economic Conditions, or Other Factors IX. Other State or Federal Requirements X. Previous Amendments XI. Integration into Indiana Code XII. Contact Information of Staff to Answer Substantive Questions Regulatory Analysis LSA Document #25-807

I. Description of Rule

Additionally, pursuant to IC 4-36-3-1, the Commission is also responsible for supervising and administering type II gambling operations. With these statutory duties in mind, the mission of the Commission is to regulate the manufacturing, distribution, and sale of alcohol and tobacco in Indiana through permitting, education, and enforcement. In doing so, the commission aims to foster safe and healthy marketplaces for alcohol and tobacco products and type II gaming in Indiana while simultaneously meeting the needs of regulated entities and the communities they serve. The rules identified for readoption are needed to adequately enforce the laws of the State of Indiana pertaining to alcohol and tobacco and type II gambling operations, to ensure the integrity of the three-tier system of regulating alcohol and alcoholic beverages, and to maintain the accuracy of fines and penalties assessed by the commission. In this way, the rules proposed for readoption help the commission to better effectuate its statutory duties and mission. Additionally, some of the rules are required to comply with statutory mandates (e.g., Rule 8 governs Salesman's permits and was adopted because IC 7.1-3-18-7 explicitly requires the application to include reasonable rules as the commission may prescribe; Rule 35.1 governs Auto Race Tracks and was adopted because IC 7.1-3-6-16 provides that the proprietor of a race track must meet the specifications of rules adopted by the Commission; Rule 47 governs riverfront permit districts and was adopted because IC 7.1-3-20-16.1(d)(3) requires permittees under this subsection to meet the criteria established by the commission by rule; Rule 53 governs type II gaming and was adopted because IC 4-36-3-3 provides that the Commission may adopt rules for the establishment, implementation, and operation of type II gambling games).

III. Impacted Parties

Rule Readoptions Estimated # of Impacted Parties 905 IAC 1-8 Salesman's Permits 3,440 salesman's permits 905 IAC 1-11.1 Temporary Beer/Wine Permit Fees 5,742 temporary beer/wine permits were issued in calendar year 2025; 2,458 temporary beer/wine permits have been issued to date in this calendar year 905 IAC 1-15.3 Minors as Employees 3,465 non-package store dealer permits 905 IAC 1-29 Selling of Package Alcoholic Beverages by Retail Permittee 2,877 retailers with carryout 905 IAC 1-32.1 Group Purchasing Agreements 815 retailers 905 IAC 1-35.1 Auto Race Tracks (Excluding 905 IAC 1-35.1-3 Ownership of the Permit) 4 Auto Race Track Permits 905 IAC 1-47 Municipal Riverfront Development Projects 473 Municipal Riverfront Development Permits 905 IAC 1-52 Posting Signs Authorized by IC 7.1-3-1-28 1,229 new and transfer permits in calendar year 2025 905 IAC 1-53 Type II Gaming 1,286 type II gaming endorsements Rule Repeals Number of Impacted Parties 905 IAC 1-23 Registration of Brands, Labels, and Trademarks 456 Indiana permittees; 908 out-of-state permittees 905 IAC 1-35.1-3 Ownership of Permit 4 Auto Race Track Permits 905 IAC 1-44 Revocation of Denied Permit 27 denied renewals in FY26 905 IAC 1-46 Tobacco Retail Sales Certificate 8,187 retailers

V. Benefit Analysis

There are no new requirements in the rules, and the rules proposed for readoption maintain benefits for public health or safety. The Commission has a prior cost benefit analysis and fiscal impact analysis on state and local government for Rule 32.1 - Group Purchasing Agreements. Copies are attached as Exhibit C.1 and C.2, respectively. The Commission does not have any other prior cost benefit, economic impact, fiscal impact, and regulatory burden statements prepared for the adoption of these rules.

VI. Cost Analysis

Rule Readoptions Costs to Regulated Entities 905 IAC 1-8 Salesman's Permits Minimal costs -There are some costs associated with this permit through the permit fee. The annual fee is only $5.00 and the fee has not increased since at least 1955. 905 IAC 1-11.1 Temporary Beer/Wine Permit Fees Minimal costs - There are some costs associated with the permit fee. The fee is fifty dollars ($50.00) per day. It is less expensive and easier to apply for a temporary beer/wine permit than a facility permit. 905 IAC 1-15.3 Minors as Employees No mandatory cost - It is optional for a regulated business to employ a minor. For those businesses that choose to employ a minor, there may be costs associated with supervision. 905 IAC 1-29 Selling of Package Alcoholic Beverages by Retail Permittees No cost or minimal cost -There may be minimal administrative costs to businesses if they decide to change their floor plan, which requires an additional inspection and approval by Excise. 905 IAC 1-32.1 Group Purchasing agreements No mandatory costs - It is optional for a retailer or dealer to participate in a Group Purchasing Agreement. For those businesses that choose to participate, there may be costs associated with participating in the co-op. (See Exhibit A.2). 905 IAC 1-35.1 Auto Race Tracks (excluding 905 IAC 1-35.1-3 Ownership of the permit) No cost or minimal cost - There may be a minimal cost to constructing the boundary around the premises in a compliant manner, if the boundary is not already so constructed. 905 IAC 1-47 Municipal Riverfront Development Projects Minimal cost or No additional cost - There may be costs associated with gathering additional information necessary to show proof of compliance for this type of permit 905 IAC 1-52 Posting Signs Authorized by IC 7.1-3-1-28 Minimal Cost - There is a cost of $2.00 per sign, if the applicant obtains the sign from the Commission 905 IAC 1-53 Type II Gaming Minimal cost - This rule requires businesses to comply with recordkeeping requirements. This is mostly part of existing accounting procedures. VII. Sources of Information VIII. Regulatory Analysis IX. Contact Information of Staff to Answer Substantive Questions Notice of Public Comment Period for Rule Readoption: 20260902-IR-905250807RNA Notice of Determination Received: August 18, 2026