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Committee advances ATC agency bill including flavored nitrous oxide ban and other technical updates

5851992 · April 2, 2025
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Summary

The Public Policy Committee advanced House Bill 1275 (agency bill) as amended, incorporating provisions from HB 1276 and new measures including a ban on flavored nitrous oxide sales to non-culinary buyers, updates to charity raffle rules, a ban on nicotine analog products, and adjustments to permit-related provisions; bill passed 9-0.

The Public Policy Committee on Oct. 27, 2025, voted 9-0 to pass House Bill 1275 as amended, an Alcohol and Tobacco Commission (ATC) agency bill that consolidates provisions from HB 1276 and adds several substantive and technical changes to Indiana law.

Chris Serrick, deputy director for the Indiana Alcohol and Tobacco Commission, told the committee the amendment incorporates seven substantive provisions from HB 1276 and three new provisions. "This amendment includes a ban on the sale or, or use of flavored nitrous oxide by any entity other than a restaurant supply store, selling for the purposes of culinary use," Serrick said, framing the change as aimed at reducing youth access to products used to get high.

Other notable provisions incorporated into the agency bill include: allowing permit holders to donate alcoholic beverages for consumption at charitable events (subject to parameters that expand current donation rules), creating an exception to liquor-liability insurance requirements for small noncommercial permit holders with limited annual alcohol sales, allowing a civic-center concessionaire to hold a permit in the concessionaire’s name rather than the local government, authorizing ATC to recover costs to destroy contraband prescribed by the Indiana Criminal Code, permitting restaurants to operate patios that are not directly connected to the indoor permitted premises, and a new ban on certain "nicotine analog" products that act like nicotine but do not contain it.

Serrick said the flavored nitrous-oxide provision would still allow restaurant supply stores to sell culinary-grade products for legitimate cooking uses, while permit holders who violate the ban could face suspension or revocation. He also noted the bill incorporates a technical update to remove the term "alien" from disqualification language and aligns charity raffle rules with recent gaming commission changes to permit limited electronic raffles.

Committee members asked clarifying questions and the chair called for a vote after discussion; the committee recorded a unanimous 9-0 vote to advance the bill as amended. Serrick thanked legislative staff for expedited work on the consolidated amendment and noted a few technical fixes expected on second reading.

The bill, as an agency omnibus, primarily addresses regulatory and administrative updates to current ATC operations with several substantive changes affecting permitted businesses, charitable organizations, and product prohibitions. The committee recorded that some provisions will require administrative rule changes and implementation adjustments at the ATC level.