Committee backs measure to let Indiana distilleries collaborate and transfer bonded product

The Public Policy Committee voted 12‑0 to recommend passage of House Bill 16‑63, a bill to permit collaborative production transfers among Indiana distilleries and clarify accounting rules for bonded transfers.

Representative Peggy Mayfield, who presented the bill, said the proposal brings distilleries into parity with wineries and breweries by allowing a licensed facility to manufacture liquor and transfer it to another licensee under a collaboration arrangement. The receiving permit holder must have manufactured at least 40 gallons the prior year, and total gallons accounted for must not exceed the number of gallons produced from raw materials, Mayfield said.

Committee members adopted two amendments clarifying that transfers between Indiana producers count against the receiving permit holder’s annual gallons and preserving the statutory word “blend” where applicable. Representative Steve Bartels explained the intent was to prevent producers from effectively inflating their allowed production totals by moving product back and forth, while still exempting intra‑state transfers from the 70% aggregate sales requirement when the product is manufactured in Indiana.

Jeff (last name not specified in committee record), identified as treasurer of the Indiana Distillers Guild and representing Cardinal Spirits, testified in support, thanking lawmakers for creating a modernized framework for craft distillers. There was no registered opposition in committee.

Representative Van Natter moved for a do‑pass recommendation as amended; the motion passed on a voice and roll call with a 12‑0 tally. The committee forwarded HB 16‑63 to the next legislative step.