Committee approves bill giving ATC power to temporarily suspend liquor permits after violent incidents

The Indiana Senate Public Policy Committee on an undisclosed date approved Senate Bill 260 as amended by a 9-0 vote, granting the Alcohol and Tobacco Commission (ATC) temporary suspension authority when certain crimes occur on licensed premises and reasonable steps to prevent the crime were not taken.

Under Amendment 2 described by the chair, the ATC may suspend a retail alcoholic beverage permit if a listed crime occurs on licensed premises and the permit holder failed to take reasonable steps to prevent it, if multiple listed crimes occurred, or if continued operation would pose an immediate threat to public safety. The statute allows immediate suspension with a subsequent administrative hearing before the commission, typically held within five days, where the permit holder may present a defense.

Supporters — including the Indiana Restaurant and Lodging Association and the ATC — said the change gives regulators a needed rapid-response tool to shut down repeat “bad actor” establishments linked to shootings, stabbings and other violence without waiting days for a scheduled commission meeting. “If there is a shooting … it impacts their business, impacts their investment, impacts their guests, impacts their abilities to keep employees,” Patrick Tam of the Indiana Restaurant and Lodging Association told the committee.

Chris, an ATC representative, said the commission supports the authority as written but is open to refinements to ensure the power is not misused. He noted the amendment includes a nexus requirement so the ATC can act only when the criminal activity is clearly connected to the permitted premises. “We see that there needs to be a balance between creating the necessary authority to take care of those .01% bad actors and ensuring a future administration doesn’t use the power in a different way,” Chris said.

Committee members asked whether actions by staff to de-escalate incidents (such as bouncer intervention) would be treated as evidence of reasonable steps; ATC counsel said reasonable de-escalation would likely not be grounds for suspension if it prevented continued risk. The committee passed the amended bill and sent it forward with unanimous support.

The bill’s language will require administrative rules and enforcement guidance from the ATC to clarify implementation details such as how the nexus and “reasonable steps” standards are applied.

Recorded roll-call votes show the committee approved the amended bill 9-0.