Bill
HB 1663
Indiana HB 1663 would let artisan distillers blend, redistill, age, and bottle liquor sourced from other licensed makers, with limits to preserve artisan status and sales rules.
Note on sources and scope
- The materials provided include several different bills numbered HB 1663 from multiple states (Indiana, Arkansas, Illinois) and an initial bill header that does not match the text. This summary focuses on the primary Indiana House Bill 1663 contained in the document (subject: alcohol/distilling), while noting the existence of unrelated bills with the same number in other states. Where dates/status conflict in the file, the most recent legislative actions are reported below.
Purpose and intent
- The Indiana HB 1663 (introduced January 21, 2025 by Rep. Mayfield, coauthored by Rep. Clere) would modernize and expand activities permitted under the artisan distiller’s permit. The intent is to allow small (“artisan”) distillers greater flexibility to blend, finish, and sell liquor sourced from other licensed manufacturers while protecting the “artisan” production standard.
Key provisions and changes
- Expanded permitted activities: An artisan distiller may manufacture liquor and may blend, redistill, age, and bottle liquor that was sourced from another licensed manufacturer, subject to specified limits and recordkeeping.
- Manufacture-for-others: An artisan distiller may manufacture liquor at their licensed premises on behalf of another artisan distiller, provided:
- The recipient permit holder produced at least 40 gallons from raw materials on-site in the prior calendar year; and
- The gallons manufactured for others in a year may not exceed the gallons the recipient produced from raw materials that same year.
- Federal Alcohol and Tobacco Tax and Trade Bureau records must be available to the state commission on request.
- Sourced product sales limit: An artisan distiller may sell liquor sourced from another manufacturer and label it as their own only if, on an aggregate annual basis, at least 70% of their sales (by gallons) are liquor fermented and distilled from raw materials by that artisan distiller at their licensed premises.
- Transfers in bond / brandy: Brandy or liquor transferred in bond counts toward the receiving permit holder’s gallonage limit for the calendar year in which the transfer occurs. Transfers in bond between artisan, farm winery brandy distiller, or general distiller permits that occurred before July 1, 2025 would not be counted against the sourced-liquor limits.
- Existing operational rules retained/clarified: The bill preserves other artisan distiller privileges (on-site sales by drink, sampling, limited Sunday carryout—up to 4.5 liters per transaction—storage rules, ability to sell direct to restaurants or retailers under limits, participation in trade shows, and restaurant/adjacent-premises rules).
- Compliance: Requires annual submission of Indiana and federal excise tax returns; requires conformity of storage facilities with federal rules.
Who would be affected
- Artisan distillers in Indiana (primary): greater flexibility to source, finish, and collaborate, but subject to production thresholds to maintain artisan status.
- Farm wineries, distillers, and wholesalers/retailers: could be parties to transfers or manufacture-for-hire arrangements.
- Indiana Alcohol Commission and federal ATF/TTB: increased recordkeeping, oversight, and enforcement responsibilities.
- Consumers: potential increases in product variety and collaborative branded products.
Procedural/timeline aspects and current status
- Effective date if enacted: July 1, 2025.
- Legislative actions in the provided timeline show committee hearings, amendments, and a committee “Do Pass” report (Public Policy). However, the bill ultimately did not become law: listed as “Died in House Committee at Sine Die adjournment” (May 5, 2025) / “Died In Committee.” A companion bill is SB 771.
- Separate unrelated bills titled HB 1663 (Arkansas: alimony/domestic abuse; Illinois: technical Pension Code change) appear in the materials but are distinct measures in other jurisdictions.
Compiled from official sources — confirm details with the bill’s official record.
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