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The practice of offering hourly drink specials was banned in 1985 in an effort to curtail drunk driving.
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As he signed the bill lifting that ban into law at a local Indianapolis bar, Holcomb said the measure “empowers” businesses to serve responsibly.
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The proposal now goes back to the House for review. If the bill becomes law, the change would take effect July 1.
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Legislation clears House panel after a heavy pour of discussion.
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Indiana banned Happy Hour decades ago, during a time of nationwide concern over drunk driving.