Ind. Code ch. 7.1-3-18.5

Ind. Code ch. 7.1-3-18.5
in effect

Ind. Code § 7.1-3-18.5-0.5 "Wholesale"

Sec. 0.5. For purposes of this chapter, "wholesale" means the business of selling, bartering, exchanging, or distributing tobacco products or electronic cigarettes to certificate holders in Indiana for the purpose of resale. As added by P.L.153-2026, SEC.28.

Ind. Code § 7.1-3-18.5-1 Tobacco sales certificate required

Sec. 1. (a) A person may not sell or otherwise distribute in exchange for consideration a tobacco product or electronic cigarette at retail or wholesale without a valid tobacco sales certificate issued by the commission. (b) A certificate may be issued only to a person who owns or operates at least one (1) of the following: (1) A premises consisting of a permanent building or structure where the tobacco product or electronic cigarette is sold or distributed. (2) A premises upon which a cigarette vending machine is located. (c) For purposes of subsection (b)(1), a permitted premises may not include sleeping or living quarters. As added by P.L.250-2003, SEC.11. Amended by P.L.231-2015, SEC.1; P.L.86-2018, SEC.113; P.L.32-2019, SEC.11; P.L.148-2026, SEC.1.

Ind. Code § 7.1-3-18.5-1.5 Wholesale distribution of tobacco; certificate required

Sec. 1.5. (a) A person may not sell tobacco products or electronic cigarettes at wholesale or participate in the wholesale distribution of tobacco products or electronic cigarettes without a valid wholesale tobacco sales certificate issued by the commission. (b) The commission may only issue a wholesale tobacco sales certificate to a person who owns or operates a wholesale tobacco business at a premises consisting of a permanent building or structure that is used for the wholesale distribution of tobacco products or electronic cigarettes. As added by P.L.148-2026, SEC.2.

Ind. Code § 7.1-3-18.5-2 Information required; fees; certification for each location; display of certificate; denial; requirements

Sec. 2. (a) A person who desires a certificate must provide the following to the commission: (1) The applicant's name and mailing address and the address of the premises for which the certificate is being issued. (2) Except as provided in section 6(c) of this chapter, a fee of: (A) two hundred dollars ($200) for a retail tobacco sales certificate; or (B) one hundred dollars ($100) for a wholesale tobacco sales certificate. (3) The name under which the applicant transacts or intends to transact business. (4) The address of the applicant's principal place of business or headquarters, if any. (5) The statement required under section 2.6 of this chapter. (6) If the applicant is applying for a new certificate under section 3.2 of this chapter, a copy of each of the following: (A) If the new ownership of the business is a business entity, the articles of incorporation, articles of organization, or any other formation documents of the business entity. (B) If the new ownership of the business is an individual, either: (i) the sales or purchase agreement; or (ii) an affidavit signed by the applicant concerning the sale or purchase, on a form prescribed by the commission, that includes the name and address of the seller and purchaser. (C) The certificate held by the previous ownership of the business. (7) A photocopy of the owner's driver's license, identification card issued under IC 9-24-16-1, a similar card issued under the laws of another state or the federal government, or another government issued document that bears the owner's photograph and birth date. If the applicant is a business with multiple owners, the applicant must designate at least one (1) managing owner for whom a photocopy of the managing owner's identification must be provided under this subdivision. (b) A separate certificate is required for each location where the tobacco products or electronic cigarettes are sold or distributed. An establishment may not hold more than one (1) active tobacco sales certificate for a location at any time. Except when the real estate for a retail location is transferred to an independent third party, the commission shall not issue a certificate to a retail location where a tobacco sales certificate was revoked within one (1) year prior to the date of the application. (c) A certificate holder shall conspicuously display the holder's certificate on the holder's premises where the tobacco products or electronic cigarettes are sold or distributed. (d) Any intentional misstatement or suppression of a material fact in an application filed under this section constitutes grounds for denial or revocation of the certificate. (e) A certificate may be issued only to a person who meets the following requirements: (1) If the person is an individual, the person must be at least twenty-one (21) years of age. (2) The person must be authorized to do business in Indiana. (3) The person has not had an interest in a certificate revoked by the commission for that business location within the preceding one (1) year. (f) The fees collected under this section shall be deposited in the enforcement and administration fund under IC 7.1-4-10. As added by P.L.250-2003, SEC.11. Amended by P.L.224-2005, SEC.10; P.L.94-2008, SEC.37; P.L.231-2015, SEC.2; P.L.49-2020, SEC.3; P.L.107-2024, SEC.1; P.L.148-2026, SEC.3; P.L.153-2026, SEC.29.

Ind. Code § 7.1-3-18.5-2.4 Persons prohibited from issuance of certificate

Sec. 2.4. (a) Subject to available resources, the commission shall not issue a tobacco sales certificate, except as otherwise authorized in this title and subject to the other restrictions contained in this title, to the following persons: (1) A person who does not have lawful status (as defined in IC 9-13-2-92.3). (2) A person who has been convicted within five (5) years before the date of application of: (A) a federal crime having a sentence of at least one (1) year; (B) a Level 1, Level 2, Level 3, Level 4, or Level 5 felony; or (C) a crime in a state other than Indiana having a penalty equal to the penalty for an Indiana Level 1, Level 2, Level 3, Level 4, or Level 5 felony. However, this subdivision does not apply to a conviction that has been expunged under IC 35-38-9. (3) A person who does not meet at least one (1) of the following descriptions: (A) The person owns the premises to which the certificate will be applicable. (B) The person has a valid lease on the premises: (i) at the time of the application for a certificate; and (ii) for the duration of the period in which the person sells or distributes in the manner described in section 1 of this chapter. (C) The person has a franchise agreement with a franchisor: (i) that owns the premises to which the certificate will be applicable; or (ii) that has a bona fide lease on the premises for the full period for which the certificate is to be issued. (4) A person whose place of business is conducted by a manager or agent, unless the manager or agent possesses the same qualifications required for the issuance of a tobacco sales certificate to the person. (5) A minor. (6) A person non compos mentis. (7) A person who has held a permit or certificate under this title and who has had that permit or certificate revoked within one (1) year prior to the date of application for a tobacco sales certificate. (8) A person who has made an application for a permit or certificate of any type under this title which has been denied less than one (1) year prior to the person's application for a tobacco sales certificate unless the first application was denied by reason of a procedural or technical defect. (b) Subsection (a)(5) does not prevent a minor from being a stockholder in a corporation. As added by P.L.107-2024, SEC.2.

Ind. Code § 7.1-3-18.5-2.6 Statement of consent

Sec. 2.6. An application for a tobacco sales certificate must contain the express statement of the applicant that the applicant consents for the duration of the certificate term (if the commission issues the certificate to the applicant) to the entrance, inspection, and search by an enforcement officer, without a warrant or other process, of the applicant's premises to determine whether the applicant is complying with the provisions of this title. The consent required by this section is renewed and continued by the retention of a certificate or the certificate's use by the applicant or the applicant's agents. As added by P.L.94-2008, SEC.38. Amended by P.L.153-2026, SEC.30.

Ind. Code § 7.1-3-18.5-3 Contents of certificate; term of certificate; nontransferable

Sec. 3. (a) A certificate issued by the commission under this chapter must contain the following information: (1) The certificate number. (2) The certificate holder's name. (3) The permanent location of the business or vending machine for which the certificate is issued. (4) The expiration date of the certificate. (b) A retail tobacco sales certificate is: (1) valid for three (3) years after the date of issuance, unless the commission suspends the retail tobacco sales certificate; and (2) nontransferable. (c) A wholesale tobacco sales certificate: (1) is valid for one (1) year after the date of issuance, unless the commission suspends the wholesale tobacco sales certificate; (2) is nontransferable; and (3) may be issued: (A) in conjunction with a tobacco sales certificate; or (B) for the same location for which a tobacco sales certificate has been issued; if the operation of each certificate occurs separately within a distinct area on the premises. As added by P.L.250-2003, SEC.11. Amended by P.L.224-2005, SEC.11; P.L.153-2026, SEC.31.

Ind. Code § 7.1-3-18.5-3.2 Sale or transfer of majority ownership

Sec. 3.2. If the majority of the ownership of a business that is a certificate holder is sold or transferred: (1) the new ownership of the business must apply for a new certificate under section 2 of this chapter; and (2) the certificate and the permit number held by the previous ownership of the business are void ninety (90) days after the date of the sale or transfer of the ownership of the business. As added by P.L.107-2024, SEC.3.

Ind. Code § 7.1-3-18.5-4 Adoption of rules

Sec. 4. The commission may adopt rules under IC 4-22-2 to establish procedures for the issuance, renewal, and reinstatement of a certificate. As added by P.L.250-2003, SEC.11.

Ind. Code § 7.1-3-18.5-5 Certificate suspension; revocation; notice and hearing

Sec. 5. (a) Subject to subsection (b), the commission may suspend the certificate of a person who fails to pay a civil penalty imposed for violating IC 35-46-1-10, IC 35-46-1-10.2, IC 35-46-1-11, IC 35-46-1-11.2, IC 35-46-1-11.4, IC 35-46-1-11.5, IC 35-46-1-11.7, or IC 35-46-1-11.8. (b) Before enforcing the imposition of a civil penalty or suspending or revoking a certificate under this chapter, the commission shall provide written notice of the alleged violation to the certificate holder and conduct a hearing. The commission shall provide written notice of the civil penalty or suspension or revocation of a certificate to the certificate holder. (c) Subject to subsection (b), the commission shall revoke the certificate of a person upon a finding by a preponderance of the evidence that the person: (1) has violated IC 35-45-5-3, IC 35-45-5-3.5, IC 35-45-5-4, IC 35-46-1-11, IC 35-46-1-11.2, IC 35-46-1-11.4, or IC 35-46-1-11.8; (2) has committed habitual illegal sale of tobacco as established under IC 35-46-1-10.2(j); or (3) has committed habitual illegal entrance by a minor as established under IC 35-46-1-11.7(f). As added by P.L.250-2003, SEC.11. Amended by P.L.227-2007, SEC.61; P.L.94-2008, SEC.39; P.L.214-2016, SEC.11; P.L.49-2020, SEC.4.

Ind. Code § 7.1-3-18.5-6 Reinstatement or renewal; failure to pay civil penalty; Class B infraction; fee

Sec. 6. (a) If a certificate has: (1) expired; or (2) been suspended; the commission may not reinstate or renew the certificate until all civil penalties imposed against the certificate holder for violating IC 35-46-1-10, IC 35-46-1-10.2, IC 35-46-1-11, IC 35-46-1-11.2, IC 35-46-1-11.4, IC 35-46-1-11.5, IC 35-46-1-11.7, or IC 35-46-1-11.8 have been paid. (b) The failure to pay a civil penalty described in subsection (a) is a Class B infraction. (c) If a certificate has been revoked, the commission may not reinstate or renew the certificate for at least one hundred eighty (180) days after the date of revocation. The commission may reinstate or renew the certificate only upon a reasonable showing by the applicant that the applicant shall: (1) exercise due diligence in the sale of tobacco products or electronic cigarettes on the applicant's premises where the tobacco products or electronic cigarettes are sold or distributed; and (2) properly supervise and train the applicant's employees or agents in the handling and sale of tobacco products or electronic cigarettes. If a certificate is reinstated or renewed, the applicant of the certificate shall pay an application fee of one thousand dollars ($1,000). (d) Notwithstanding IC 34-28-5-5(c), civil penalties collected under this section must be deposited in the Richard D. Doyle tobacco education and enforcement fund established under IC 7.1-6-2-6. As added by P.L.250-2003, SEC.11. Amended by P.L.94-2008, SEC.40; P.L.231-2015, SEC.3; P.L.214-2016, SEC.12; P.L.49-2020, SEC.5; P.L.163-2025, SEC.38.

Ind. Code § 7.1-3-18.5-7 Tobacco product or electronic cigarette sales without certificate; penalty

Sec. 7. (a) A person who is required to have a certificate under this chapter and who sells or distributes tobacco products or electronic cigarettes without a valid certificate commits a Class A infraction. Each violation of this section constitutes a separate offense. (b) Notwithstanding IC 34-28-5-5(c), civil penalties collected under this section must be deposited in the Richard D. Doyle tobacco education and enforcement fund established under IC 7.1-6-2-6. As added by P.L.250-2003, SEC.11. Amended by P.L.252-2003, SEC.4; P.L.231-2015, SEC.4; P.L.163-2025, SEC.39.

Ind. Code § 7.1-3-18.5-8 Mitigate civil penalties

Sec. 8. The commission may mitigate civil penalties imposed against a certificate holder for violating IC 35-46-1-10, IC 35-46-1-10.2, IC 35-46-1-11, IC 35-46-1-11.2, IC 35-46-1-11.4, IC 35-46-1-11.5, IC 35-46-1-11.7, IC 35-46-1-11.8, or any of the provisions of this chapter if a certificate holder provides a training program for the certificate holder's employees that includes at least the following topics: (1) Laws governing the sale of tobacco products and electronic cigarettes. (2) Methods of recognizing and handling customers who are less than twenty-one (21) years of age. (3) Procedures for proper examination of identification cards to verify that customers are under twenty-one (21) years of age. As added by P.L.94-2008, SEC.41. Amended by P.L.231-2015, SEC.5; P.L.214-2016, SEC.13; P.L.49-2020, SEC.6.

Ind. Code § 7.1-3-18.5-9 Exercise due diligence; supervision and training of employees or agents; prima facie evidence of lack of due diligence

Sec. 9. A certificate holder shall exercise due diligence in the supervision and training of the certificate holder's employees or agents in the handling and sale of tobacco products and electronic cigarettes on the holder's retail premises. Proof that employees or agents of the certificate holder, while in the scope of their employment, committed at least six (6) violations relating to IC 35-46-1-10.2(b) in any one (1) year period shall be prima facie evidence of a lack of due diligence by the certificate holder in the supervision and training of the certificate holder's employees or agents. As added by P.L.94-2008, SEC.42. Amended by P.L.231-2015, SEC.6; P.L.49-2020, SEC.7.

Ind. Code § 7.1-3-18.5-9.2 Employee requirements; civil penalty; employee violation

Sec. 9.2. (a) An employee of a certificate holder must hold a valid: (1) driver's license issued by the state of Indiana or another state; or (2) identification card issued by the state of Indiana, another state, or the United States; to sell tobacco products. (b) An employee must have the employee's driver's license or identification card or a copy of the employee's driver's license or identification card: (1) either: (A) in the employee's possession; or (B) on file with the employee's employer; and (2) upon request, readily available to show to an excise officer or law enforcement; when selling tobacco products. (c) If an employee holds a valid license or identification card as described in subsection (a) but is unable to show the license, identification card, or a copy to an excise officer under subsection (b) because: (1) the employee has left the license, identification card, or copy in another location; or (2) the license, identification card, or copy has otherwise been lost or mislaid; the employee may, within five (5) days of the employee's inability to show the license, identification card, or copy to the excise officer, produce to the excise officer or to the office of the commission satisfactory evidence of a license or identification card issued to the individual that was valid at the time the individual was unable to show the license, identification card, or copy. (d) If an employee who is unable to show a license, identification card, or copy to an excise officer fails to produce satisfactory evidence within five (5) days in the manner described in subsection (c), the commission may impose a civil penalty on the certificate holder under IC 7.1-3-23-3. (e) The commission shall take the following actions with respect to a certificate holder's certificate if the certificate holder's employees violate this section: (1) For three (3) violations in a one (1) year period, suspend the certificate for a period of five (5) days. (2) For four (4) violations in a one (1) year period, suspend the certificate for a period of an additional five (5) days. (3) For five (5) violations in a one (1) year period, suspend the certificate for a period of an additional five (5) days. (4) For six (6) or more violations in a one (1) year period, revoke the certificate. As added by P.L.107-2024, SEC.4. Amended by P.L.148-2026, SEC.4; P.L.153-2026, SEC.32.

Ind. Code § 7.1-3-18.5-10 Failure to attend hearing

Sec. 10. (a) If a certificate holder fails to attend or participate in a hearing without good cause, the hearing judge may recommend to the commission that the commission suspend or revoke the certificate holder's certificate or impose a fine on the certificate holder of up to one thousand dollars ($1,000). (b) A hearing judge may grant a continuance of a hearing upon written motion showing good cause for the continuance. As added by P.L.94-2008, SEC.43.

Ind. Code § 7.1-3-18.5-11 Sales at site of nuisance or criminal activity

Sec. 11. (a) If a certificate holder sells or distributes tobacco products or electronic cigarettes at a location: (1) determined to be a public nuisance; or (2) at which conduct or acts that are crimes or infractions under IC 35 occur; the commission may impose sanctions against the certificate holder under IC 7.1-2-3-33 and section 5 of this chapter. (b) If the criminal conduct under subsection (a)(2) at the location involves the possession or sale of illegal substances or other contraband under IC 35, the commission may include the costs of disposing of the illegal substances or contraband in the sanctions imposed on the certificate holder. As added by P.L.214-2016, SEC.14. Amended by P.L.163-2025, SEC.40.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://iga.in.gov/laws/2026/ic/titles/7.1Fetched: 10/17/2026

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