Indiana

Clean Indoor Air

Public Places

Smoking is restricted to designated areas in “public buildings”. A “public building” is an enclosed structure or part of an enclosed structure: 1) occupied by an agency of state or local government; 2) used as a classroom building or a dining area at a state educational institution; 3) used as a public school; 4) licensed as a health facility under Indiana Code sections 16-21 or 16-28; 5) used as a station for paid firefighters or paid police officers; 6) licensed as a child care center or child care home or registered as a child care ministry under Indiana Code section 12-17.2, 7) licensed as a hospital under Indiana Code section 16-21 or a county hospital subject to Indiana Code section 16-22; or 8) used as a provider’s office. Smoking is prohibited in a school bus during a school week or when it is being used for specified purposes. Smoking is also prohibited in the retail area of a grocery or drug store, or the dining area of a restaurant designated as non-smoking by the proprietor. A county, city, town, or other governmental unit is not prohibited from adopting an ordinance more restrictive than this chapter.

IND. CODE. §§ 16-41-37-1 et seq. (2003).

Government Buildings

Smoking is restricted to designated areas in “public buildings,” the definition of which includes an agency of state or local government. “Agency” is defined as a board, commission, department, agency, authority, or other entity exercising a part of the executive, administrative, legislative, or judicial power of the state or local government.

IND. CODE. §§ 16-41-37-1 et seq. (2003).

Schools

Smoking is restricted to designated areas in “public buildings”. Public schools and classroom buildings and dining areas at state educational institutions are included in the definition of “public buildings.” Smoking is also prohibited in a school bus during a school week or while the school bus is being used for the transportation of school children to and from the following: school, school athletic games or contests, or other school functions.

IND. CODE §§ 16-41-37-1 et seq. (2003).

Child Care Centers

Smoking is restricted to designated areas in “public buildings.” Places licensed as a child care center or child care home or registered as a child care ministry are included in the definition of “public buildings.”

IND. CODE §§ 16-41-37-1 et seq. (2003).

Health Facilities

Smoking is restricted to designated areas in “public buildings.” Places licensed as a health facility or a hospital, a county hospital or used as a healthcare provider’s office are included in the definition of “public buildings.”

IND. CODE §§ 16-41-37-1 et seq. (2003).

Restaurants

Smoking is prohibited in the dining area of a restaurant that is designated and posted as the restaurant’s nonsmoking area by the restaurant’s proprietor. The proprietor of a restaurant shall post conspicuous signs at each entrance to the restaurant, informing the public of the establishment’s smoking policy.

IND. CODE §§ 16-41-37-1 et seq. (2003).

Penalties/Enforcement

The official in charge of a public building shall post a conspicuous sign that reads “Smoking Is Prohibited By State Law Except In Designated Smoking Areas” or other similar language. A person who smokes in a nonsmoking area commits a Class B infraction punishable by a fine of up to $1,000 for the first offense which becomes a Class A infraction punishable by a fine of up to $10,000 if the person has three previous violations within the preceding 12 months. Also the person may be removed by the official in charge of the public building for failing to refrain from smoking when asked to do so.

IND. CODE §§ 16-41-37-1 et seq. (2003) & 34-28-5-4 (1998).

Tobacco Excise Tax

Cigarettes

Tax rate per pack of 20: 99.5 cents

Date last changed: July 1, 2007 — from 55.5 cents to 99.5 cents

Year first enacted: 1947

IND. CODE § 6-7-1-12(a) (2007).

A tax is also imposed on all cigarette papers, wrappers, or tubes, made or prepared for the purpose of making cigarettes. On cigarette papers, the tax is one half cent per 50 papers, and for tubes, the tax is 1 cent per 50 tubes or fractional part thereof.

IND. CODE § 6-7-1-12(b) (2002).

Cigarette tax revenue is distributed as follows: 4.22 percent to the “Cigarette Tax Fund,” which is then allocated to the Department of Natural Resources for specified purposes, the Clean Water Indiana Fund and to cities and towns in Indiana based on population; 0.6 percent to the “Mental Health Centers Fund,” which is then allocated to the Division of Mental Health and Addiction for specified purposes; 53.68 percent to the General Fund; 5.43 percent to the Pension Relief Fund; 27.05 percent to the Indiana check-up plan trust fund; 2.46 percent to the state general fund for the purpose of paying appropriations for Medicaid Current Obligations, for provider reimbursements; 4.1 percent to the state general fund for the purpose of paying any appropriation for a health initiative; and 2.46 percent to the state general fund for the purpose of reimbursing the state general fund for a specified tax credit.

IND. CODE § 6-7-1-28.1 (2008).

Other Tobacco Products

All other tobacco products: 24% of the wholesale price

IND. CODE § 6-7-2-7 (2007).

Twenty-five percent of the revenue from the tax on other tobacco products is deposited in the affordable housing and community development fund. The remaining revenue is distributed the same way as cigarette tax revenue (see above).

IND. CODE §§ 6-7-2-17 & 6-7-1-28.1 (2007).

Revenue Collected

$354,127,000

Youth Access

Compliance/Enforcement

The Division of Mental Health and Addiction shall coordinate the conduct of random, unannounced inspections at locations where tobacco products are sold or distributed. Only the Indiana Alcohol and Tobacco Commission, an Indiana law enforcement agency, the office of the sheriff of a county, or an organized police department of a municipal corporation may conduct the random unannounced inspections. These entities may use retired or off-duty law enforcement officers to conduct the inspections. Minors may be used in an enforcement action as long as they are overseen by the division of government conducting the inspection, are not recruited at the scene of a possible violation, and have written permission from their parents or legal guardian. Regulation of the sale, distribution, or display of tobacco products may only be authorized by the general assembly. An ordinance, bylaw, or rule of any county, city, township, other political subdivision, or agency of the state is void.

IND. CODE §§ 7.1-6-2-2 (2001); 7.1-6-2-4 (1997); & 16-41-39 et seq. (1996).

Penalties for Sales to Minors

A retail establishment that sells or distributes tobacco to a minor commits a Class C infraction. For a sale to take place the buyer must pay the seller for the tobacco products. Violation is subject to a civil penalty of up to $200 if an establishment has received no citations/summons in the previous 180 days, a civil penalty of up to $400 if an establishment has received one citation/summons in the previous 180 days, a civil penalty of up to $700 if an establishment has received two citations/summonses in the previous 180 days, and a civil penalty of up to $1,000 if an establishment has been issued three or more citations/summonses in the previous 180 days. A person who violates this law at least six times in any 180-day period commits habitual illegal sale of tobacco, a Class B infraction, and the tobacco sales certificate may be suspended by the Indiana Alcohol and Tobacco Commission. The commission may mitigate civil penalties against a certificate holder if they have a training program for their employees that cover specific topics. It is not a defense that the person to whom the tobacco was sold or distributed did not smoke, chew, or otherwise consume the tobacco. It is a defense if the buyer produced a driver’s license or photo ID that showed the buyer was of legal age to make the purchase; and the appearance of the purchaser or recipient was such that an ordinary prudent person would believe that the purchaser or recipient was not less than the legal age. It is also a defense if the accused retail establishment sold or delivered the tobacco to a person who acted in the ordinary course of employment or a business concerning tobacco: agriculture, processing, transporting, wholesaling, or retailing. Unless a person buys or receives tobacco under the direction of a law enforcement officer as part of an enforcement action, a person who sells or distributes tobacco is not liable for a violation of this section unless the person less than 18 years of age who bought or received the tobacco is also issued a citation or summons. Regulation of the sale, distribution, or display of tobacco products may only be authorized by the general assembly. An ordinance, bylaw, or rule of any county, city, township, other political subdivision, or agency of the state is void.

IND. CODE §§ 35-46-1-10.2 (2008) 7.1-3-18.5-8 (2008) & 16-41-39 et seq. (1996).

A person who knowingly sells or distributes tobacco to a minor or purchases tobacco for delivery to another person who is a minor commits a Class C infraction punishable by a fine of up to $500. For a sale to take place the buyer must pay the seller for the tobacco products. It is not a defense that the person to whom the tobacco was sold or distributed did not smoke, chew, or otherwise consume the tobacco. The same affirmative defenses available to retailers are also available to persons who sell tobacco products to minors (see above). Unless a person buys or receives tobacco under the direction of a law enforcement officer as part of an enforcement action, a person who sells or distributes tobacco is not liable for a violation of this section unless the person less than 18 years of age who bought or received the tobacco is also issued a citation or summons. Regulation of the sale, distribution, or display of tobacco products may only be authorized by the general assembly. An ordinance, bylaw, or rule of any county, city, township, other political subdivision, or agency of the state is void.

IND. CODE §§ 35-46-1-10 (2003), 7.1-3-18.5-8 (2008) & 16-41-39 et seq. (1996).

Penalties to Minors

A minor who purchases, accepts tobacco for personal use or possesses tobacco commits a Class C infraction for which a fine of up to $500 may be adjudged. It is a defense to prosecution if the accused person acted in the ordinary course of employment in a business concerning tobacco agriculture, tobacco processing, tobacco transporting, tobacco wholesaling, or tobacco retailing. Regulation of the sale, distribution, or display of tobacco products may only be authorized by the general assembly. An ordinance, bylaw, or rule, of any county, city, township, other political subdivision or agency of the state, is void.

IND. CODE §§ 35-46-1-10.5 (1997) & 16-41-39 et seq. (1996).

Placement of Tobacco Products

The owner of a retail establishment that sells or distributes cigarettes through a self-service display, other than a coin operated machine, commits a Class C infraction. As used in this section, “self-service display” means a display that contains cigarettes in an area where a customer is permitted and has access to cigarettes without assistance from a sales person. This does not apply to a self-service display in a retail establishment that has a primary purpose to sell cigarettes and prohibits entry by persons less than 18 years of age. Regulation of the sale, distribution, or display of tobacco products may only be authorized by the general assembly. An ordinance, bylaw, or rule of any county, city, township, other political subdivision, or agency of the state, is void.

IND. CODE §§ 35-46-1-11.8 (2007) & 16-41-39 et seq. (1996).

Sign Posting

A location selling tobacco at retail shall post and maintain in a conspicuous place signs stating: 1) “The sale of tobacco to persons under 18 years of age is forbidden by Indiana law;” 2) “Smoking by Pregnant Women May Result in Fetal Injury, Premature Birth, and Low Birth Weight;” and 3) that displays a toll free number for assistance to callers in quitting smoking. Violation is a Class C infraction punishable by a fine of up to $500 for the owner or person who has control over the establishment. Regulation of the sale, distribution, or display of tobacco products may only be authorized by the general assembly. An ordinance, bylaw, or rule of any county, city, township, other political subdivision, or agency of the state, is void.

IND. CODE §§ 35-46-1-11 (2008) & 16-41-39 et seq. (1996).

Other Provisions

Internet Sales: A merchant may not mail or ship cigarettes as part of a delivery sale unless, before mailing or shipping the cigarettes, the merchant: obtains from the prospective customer a written statement signed by the prospective customer stating the customer’s address and date of birth, makes a good faith effort to verify the information by using a federal or commercially available data base and receives payment for the delivery sale by a credit or debit card issued in the name of the prospective purchaser. Merchants that are not cigarette manufacturers are prohibited from making delivery sales to Indiana residents or retailers that are not distributors except under specified circumstances. Violation is subject to a civil penalty not to exceed $5,000. A merchant who mails or ships cigarettes as part of a delivery sale shall use a mailing or shipping service that requires the customer or a person at least 18 years of age designated by the customer to sign to accept delivery of the cigarettes; and to present a valid driver’s license or identification card unless the person appears to be over 27 years of age. Violation by a delivery service is up to a $1,000 fine. Violations by merchants range from $1,000 to $2,000 for a first violation to $10,000 for a fifth violation in five years. Signing another person’s name to a certification is a $1,000 fine.

IND. CODE § 24-3-5 et seq. (2005).

Note: Some parts of this law may be affected by the U.S. Supreme Court decision in Rowe v. New Hampshire Motor Transport Association, decided February 20, 2008.

A retail establishment whose primary purpose is the sale of tobacco products may not allow an individual who is less than 18 years of age to enter the retail establishment. The retail establishment must conspicuously post on all entrances a sigs that state: 1) “It is unlawful for a person less than 18 years old to enter this store;” and 2) that displays a toll free number for assistance to callers in quitting smoking. Violation is a Class C infraction subject to the same penalties as a retail establishment that sells tobacco products to minors. The Indiana Alcohol and Tobacco Commission may mitigate civil penalties against a certificate holder if they have a training program for their employees that cover specific topics related to tobacco sales. Regulation of the sale, distribution, or display of tobacco products may only be authorized by the general assembly. An ordinance, bylaw, or rule of any county, city, township, other political subdivision, or agency of the state, is void.

IND. CODE §§ 35-46-1-11.7 (2008), 7.1-3-18.5-8 (2008) & 16-41-39 et seq. (1996).

Businesses, whose primary activity is the sale of tobacco or tobacco products and accessories, may not operate within 200 feet of a public or private elementary or secondary school, as measured between the nearest point of the premises occupied by the tobacco business and the nearest point of a building used by the school for instructional purposes. A violation of this section is a Class C misdemeanor. This section does not apply to businesses operating as a tobacco business before April 1, 1996. Regulation of the sale, distribution, or display of tobacco products may only be authorized by the general assembly. An ordinance, bylaw, or rule of any county, city, township, other political subdivision, or agency of the state, is void.

IND. CODE §§ 35-46-1-11.2 (1997) & 16-41-39 et seq. (1996).

Restrictions on Distribution of Tobacco Product Samples or Sales of Single Cigarettes

Samples

A retail establishment that distributes tobacco to a minor commits a Class C infraction punishable by the graduated civil penalties listed under the 1st paragraph of the “Penalties for Sales to Minors” section. All provisions and affirmative defenses from that section apply to the distribution of tobacco products by retailers as well. Regulation of the sale, distribution, or display of tobacco products may only be authorized by the general assembly. An ordinance, bylaw, or rule of any county, city, township, other political subdivision, or agency of the state, is void.

IND. CODE §§ 35-46-1-10.2 (2008), 7.1-3-18.5-8 (2008) & 16-41-39 et seq. (1996).

A person that knowingly distributes tobacco to a minor commits a Class C infraction punishable by a civil penalty of up to $500. All provisions and affirmative defenses from the 2nd paragraph of the “Penalties for Sales to Minors” section apply to the distribution of tobacco products by persons as well. Regulation of the sale, distribution, or display of tobacco products may only be authorized by the general assembly. An ordinance, bylaw, or rule of any county, city, township, other political subdivision, or agency of the state, is void.

IND. CODE §§ 35-46-1-10 (2003), 7.1-3-18.5-8 (2008) & 16-41-39 et seq. (1996).

Single Cigarettes

It is unlawful for a person to sell cigarettes other than in an unopened package originating with the manufacturer that bears the health warning required by federal law. A violation of this law is a Class C infraction punishable by a fine of up to $500. Regulation of the sale, distribution, or display of tobacco products may only be authorized by the general assembly. An ordinance, bylaw, or rule, of any county, city, township, other political subdivision, or agency of the state is void.

IND. CODE §§ 7.1-6-2-3 (1997) & 16-41-39 et seq. (1996).

Restrictions on Sale of Tobacco Products in Vending Machines

Placement

Tobacco product vending machines are restricted to areas of licensed premises accessible to persons over 18 years of age; private industrial or office locations; private clubs, if they are accessible only to persons over age 18; and riverboats where entry is limited to persons who are at least 21 years of age and on which lawful gambling is authorized. Vending machines can not be located in these areas if a vending machine is placed in or directly adjacent to an entranceway or an exit, or placed in a hallway, a restroom, or another common area that is accessible to persons who are less than 18 years of age. Regulation of the sale, distribution, or display of tobacco products may only be authorized by the general assembly. An ordinance, bylaw, or rule of any county, city, township, other political subdivision, or agency of the state is void.

IND. CODE §§ 35-46-1-11.5 (2003) & 16-41-39 et seq. (1996).

Penalty

Violation of the restrictions on placement of tobacco product vending machines is a Class C infraction punishable by a civil penalty of $50 for a first violation; $250 for a second violation within 90 days; and the vending machine shall be impounded upon a third violation within 90 days. An owner of a retail establishment may not be issued a citation or summons for a violation more than once every two business days for each business location. The Indiana Alochol and Tobacco Commission may mitigate civil penalties against a certificate holder if they have a training program for their employees that covers specific topics related to tobacco sales. Regulation of the sale, distribution, or display of tobacco products may only be authorized by the general assembly. An ordinance, bylaw, or rule of any county, city, township, other political subdivision, or agency of the state is void.

IND. CODE §§ 35-46-1-11.5 (2003), 7.1-3-18.5-8 (2008) & 16-41-39 et seq. (1996).

Sign Posting

The following notices must be posted on vending machines located in a public place: 1) “If you are under 18 years of age, you are forbidden, by Indiana law, to buy tobacco from this machine”. The owner or person who has control over a vending machine in violation commits a Class C infraction punishable by a fine of up to $500; 2) “Smoking by Pregnant Women May Result in Fetal Injury, Premature Birth, and Low Birth Weight;” and 3) that displays a toll free number for assistance to callers in quitting smoking. Failing to post a notice on a vending machine is a Class C infraction. Regulation of the sale, distribution, or display of tobacco products may only be authorized by the general assembly. An ordinance, bylaw, or rule of any county, city, township, other political subdivision, or agency of the state is void.

IND. CODE §§ 35-46-1-11 (2008) & 16-41-39 et seq. (1996).

Licensing Requirements

Requirements

Retailers must obtain a tobacco sales certificate from the Indiana Alcohol and Tobacco Commission to sell tobacco products. A separate certificate is required for each place where tobacco products are sold or distributed. A certificate is valid for one year after the date of issuance and is nontransferable. Selling tobacco products at retail without a certificate is a Class A infraction.

IND. CODE §§ 7.1-3-18.5 et seq. (2003).

Distributors must obtain a registration certificate to sell cigarettes or a license to sell other tobacco products from the Department of State Revenue. All registration certificates and licenses shall be valid for one year from the date of issuance unless revoked or suspended. A separate registration certificate or license is required for each place of business. Distributing cigarettes without a registration certificate or other tobacco products without a license is a Class B misdemeanor.

IND. CODE §§ 6-7-1-16 (1992); 6-7-1-23 (1978); 6-7-2-8 (1987) & 6-7-2-18 (1987).

Manufacturers must obtain a license from the Indiana Alcohol and Tobacco Commission for their principal place of business. The commission shall determine the duration of a license, but a license may not be valid for more than three years. The license issued under this section is nontransferable.

IND. CODE §§ 24-3-6 et seq. (2005).

Fee

Distributors: $500 annually for cigarettes, $25 annually for other tobacco products;

Retailers: $50 per location.

IND. CODE §§ 6-7-1-16 (1992), 6-7-2-8 (1987), & 7.1-3-18.5 (2003).

Smoker Protection Laws

An employer may not require, as a condition of employment, an employee or prospective employee to refrain from using tobacco products outside the course of the employee’s or prospective employee’s employment. An employer also may not discriminate against an employee with respect to compensation and benefits, or terms and conditions of employment based on the employee’s or prospective employee’s use of tobacco products outside the course of employment. However, an employer may implement financial incentives intended to reduce tobacco use, and related to employee health benefits provided by the employer. An employee or prospective employee may bring civil action against the employer to enforce this law. This does not apply to an employer that is a church, a religious organization, or a school or business conducted by a religious organization.

IND. CODE §§ 22-5-4-1 et seq. (2006).

Tobacco Liability

Industry Protection

An appeal bond that an appellant must post to stay execution on a judgment while an appeal is pending may not exceed $25 million regardless of the total amount of the judgment. If an appellee proves by a preponderance of the evidence that an appellant is dissipating assets outside the ordinary course of business to avoid payment of a judgment, a court may enter orders that are necessary to protect the appellee; and require the appellant to post a bond that is equal to the total amount of the judgment.

IND. CODE § 34-49-5-3 (2002).

Tobacco Settlement

Tobacco Control Appropriations

Indiana allocated $15,066,000 for tobacco prevention and cessation programs in FY2009 (July 1, 2008 to June 30, 2009) from the state’s annual MSA payment and from the state general fund. $16,200,000 was appropriated in FY2008. This is the second year of the FY2008-FY2009 biennial budget.

FY2008-FY2009 Biennial Budget (H.B. 1001) enacted 5/11/07 and effective 7/1/07 (FY2008) & 7/1/08 (FY2009) & H.B. 1678 enacted 5/10/07 and effective 7/1/07.

Note: Indiana originally appropriated $16.2 million for its tobacco control program in FY2009 as well, but this amount was reduced by across the board budget cuts.

Non-Monetary Provisions

Indiana created the Tobacco Use Prevention and Cessation Trust Fund. The governing board consists of government and health officials, including representatives of the American Lung Association in Indiana. The Fund will develop a long range state plan, based on best practices for tobacco control programs as published by the Centers for Disease Control and Prevention.

IND. CODE §§ 4-12-4 et seq. (2000).

One response to “Indiana

  1. Steven Stanley

    Hello, My wife is Native American with a tribal number. I am not. We would like to sell tobacco leaves for ceremonial purpose. Is that legal in Indiana? Do we need a permit if it is legal? Where would we obtain permit, and what would be the cost? Thank You Steven Stanley

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