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ATC May Issue Harsher Fines and Suspensions for Second and Third SAC Violations

The Indiana Alcohol and Tobacco Commission (ATC) announced that the ATC prosecutor would begin handing down fines and suspensions for permitted locations having a second or subsequent violations for selling to minors within a five-year period. The Commission expressed its opinion that fines alone are insufficient to address current behaviors in the industry. Therefore, the ATC is encouraging the ATC prosecutor to implement increased and consistent use of suspensions as a tool to encourage compliance.

In the past, the ATC typically increased the fine on a second violation, but did not hand down a suspension. Only after the third violation was suspension considered and only issued in egregious circumstances. The ATC is now considering at least a one-day suspension for a second SAC (Survey for Alcohol Compliance) violation and up to five days’ suspension for a third violation. In most cases, the prosecutor will use a five-year lookback, but each case will be reviewed on its own. If a location has several violations outside of the five-year span, suspensions still may be considered.

With regard to public nuisance cases – e.g., multiple police runs to a location – the ATC has indicated an inclination toward suspensions on first violations if they involve acts of violence.

If you have any questions, please contact any member of the Bose McKinney & Evans Hospitality and Alcoholic Beverage Law Group.