Chapter 1 Alcoholic Beverage Commission

Part 1 Commission Creation, Membership, and Employees

57-1-101. “Commission” defined.

Whenever the word “commission” appears in the context of this chapter, the same means and refers to the alcoholic beverage commission.

Acts 1963, ch. 257, § 11; T.C.A., § 57-819.

Law Reviews.

Selected Tennessee Legislation of 1986, 54 Tenn. L. Rev. 457 (1987).

57-1-102. Alcoholic beverage commission created — Appointment.

  1. There is hereby created and established the alcoholic beverage commission, which shall consist of three (3) members, to be appointed by the governor. One (1) member of the commission shall be appointed and reside in each grand division of the state. The members comprising the commission shall not be less than thirty (30) years of age, and shall have been residents and citizens of this state for at least five (5) years preceding their appointment. In making appointments to the commission, the governor shall strive to ensure that at least one (1) person serving on the commission is sixty (60) years of age or older and that at least one (1) person serving on the commission is a member of a racial minority.
    1. Notwithstanding § 3-6-304 or any other law to the contrary, and in addition to all other requirements for membership on the commission:
      1. Any person registered as a lobbyist pursuant to the registration requirements of title 3, chapter 6, who is subsequently appointed or otherwise named as a member of the commission shall terminate all employment and business association as a lobbyist with any entity whose business endeavors or professional activities are regulated by the commission, prior to serving as a member of the commission. This subdivision (b)(1)(A) shall apply to all persons appointed or otherwise named to the commission after July 1, 2010;
      2. No person who is a member of the commission shall be permitted to register or otherwise serve as a lobbyist pursuant to title 3, chapter 6, for any entity whose business endeavors or professional activities are regulated by the commission during such person's period of service as a member of the commission. This subdivision (b)(1)(B) applies to all persons appointed or otherwise named to the commission after July 1, 2010, and to all persons serving on the commission on such date who are not registered as lobbyists; and
      3. No person who serves as a member of the commission shall be employed as a lobbyist by any entity whose business endeavors or professional activities are regulated by the commission for one (1) year following the date such person's service on the commission ends. This subdivision (b)(1)(C) applies to members serving on the commission as of July 1, 2010, and to all members appointed to the commission subsequent to such date.
    2. A person who violates this subsection (b) shall be subject to the penalties prescribed in title 3, chapter 6.
    3. The bureau of ethics and campaign finance is authorized to promulgate rules and regulations to effectuate the purposes of this subsection (b). All such rules and regulations shall be promulgated in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5, and in accordance with the procedure for initiating and proposing rules by the ethics commission to the bureau of ethics and campaign finance as prescribed in § 4-55-103.

Acts 1963, ch. 257, § 1; T.C.A., § 57-801; Acts 1987, ch. 70, § 1; 1988, ch. 1013, § 25; 2010, ch. 1118, § 3.

Compiler's Notes. The alcoholic beverage commission created by this section, terminates June 30, 2021. See §§4-29-112,4-29-242.

Cross-References. Grand divisions, title 4, ch. 1, part 2.

57-1-103. Terms — Vacancy — Removal — Compensation — Attendance.

  1. The three (3) members of the commission appointed by the governor must be appointed for terms concurrent with the term of the governor. In the event a vacancy occurs, the governor shall appoint a person to fill the vacancy for the unexpired term.
  2. The commissioners serve at the pleasure of the governor and are subject to removal by the governor at any time.
  3. Each member of the commission must receive five hundred dollars ($500) for each meeting of the commission that the member attends. The members of the commission must likewise be reimbursed for their actual and necessary expenses incurred in connection with their official duties. All reimbursement for travel expenses must be in accordance with the comprehensive travel regulations as promulgated by the department of finance and administration and approved by the attorney general and reporter.
    1. A member of the commission who misses more than fifty percent (50%) of the scheduled meetings in a calendar year must be removed as a member of the commission.
    2. The chair of the commission shall promptly notify the governor of any member who fails to satisfy the attendance requirement as prescribed in subdivision (d)(1).

Acts 1963, ch. 257, § 2; 1976, ch. 806, § 1(12); T.C.A., § 57-802; Acts 1988, ch. 867, § 1; 2018, ch. 933, § 6.

Amendments. The 2018 amendment, in (a) in the first sentence, substituted “appointed by the governor must” for “shall” and inserted “the” preceding “governor” at the end, substituted “a person” for “some person” in the second sentence; rewrote (b) which read: “The governor shall have authority to remove any member from the commission only for cause, including misfeasance and nonfeasance, after first delivering to the member a copy of the charges against the member.”; in (c), rewrote the first sentence which read: “The members of the commission shall receive annual compensation in the sum of six thousand dollars ($6,000) per year, which shall be payable in monthly installments out of the treasury of the state of Tennessee.”, in the second sentence, deleted “The members” at the beginning, and added “that the member attends” at the end, in the third sentence, added “The members of the commission must” at the beginning, deleted “shall” preceding “likewise” and substituted “must” for “shall”; and added (d).

Effective Dates. Acts 2018, ch. 933, § 7. July 1, 2018.

57-1-104. Name and domicile — Meetings — Quorum.

  1. The official name of the commission shall be the Tennessee alcoholic beverage commission and its official domicile shall be in Nashville. All meetings of the commission shall be held in Nashville.
  2. The commission shall elect one (1) of its own members as chair, and the commission shall meet at least one (1) time in Nashville each month, and shall hold such other meetings for any period of time as may be necessary for the commission to transact and perform its official duties and functions. The commission may hold a special meeting at any time it deems necessary and advisable in the performance of its official duties. Two (2) members of the commission shall constitute a quorum for the transaction of any business, or in the performance of any duty, power or function of the commission. A special meeting may be called by the chair, or by a majority of the commission.

Acts 1963, ch. 257, § 3; T.C.A., § 57-803.

57-1-105. Director — Salary — Qualifications — Duties — Assistant director.

  1. The commission is hereby authorized to appoint a director to serve at the pleasure of the commission. The director's salary shall be fixed by the commission with the approval of the appropriate state officials as now required by law. The office of the director shall be at Nashville.
  2. The director shall be at least thirty (30) years of age, and shall have been a citizen and resident of this state for at least five (5) years prior to appointment. The director shall be licensed to practice law in this state. The director shall be designated as director, alcoholic beverage commission.
  3. The director shall be the chief administrative officer of the commission and all personnel employed by the commission shall be under the director's direct supervision. The director shall be solely responsible to the commission for the administration and enforcement of this chapter and shall be responsible for the performance of all duties and functions delegated by the commission.
  4. The director shall keep and be responsible for all records of the commission and shall also serve as secretary of the commission. The director shall prepare and keep the minutes of all meetings held by the commission, including a record of all business transacted and decisions rendered by the commission.
  5. The commission is hereby authorized to appoint an assistant director who shall perform such duties and functions which may be assigned by the director or the commission. The assistant director, if licensed to practice law in this state, may also be designated by the commission to sit, act and serve as a hearing officer and when designated as a hearing officer, the assistant director shall be authorized to perform the same duties and functions as the regular hearing officer is now authorized under this chapter and title.
  6. The director and assistant director shall be reimbursed for travel expenses in accordance with the comprehensive travel regulations as promulgated by the department of finance and administration and approved by the attorney general and reporter.

Acts 1963, ch. 257, § 4; 1970, ch. 452, § 1; 1976, ch. 806, § 1(12); T.C.A., § 57-804.

Attorney General Opinions. Discrimination, OAG 89-73 1989 Tenn. AG LEXIS 55 (5/3/89).

57-1-106. Hearing officer — Service of process.

  1. The director shall act and serve as hearing officer when designated by the commission and shall perform such duties as hearing officer as now authorized under this chapter.
  2. In any action or suit brought against the members of the commission in their official capacity in a court of competent jurisdiction, to review any decision or order issued by the commission, service of process issued against the commission may in their absence be lawfully served or accepted by the director on behalf of the commission as though the members of the commission were personally served with process.

Acts 1963, ch. 257, § 5; T.C.A., § 57-805.

57-1-107. Chief law enforcement officer — Appointment — Qualifications — Travel expenses.

The commission is hereby authorized to appoint a chief law enforcement officer who shall serve at the pleasure of the commission. The chief law enforcement officer shall:

  1. Be under the immediate supervision of the director;
  2. Be at least thirty (30) years of age;
  3. Have been a citizen and resident of this state for at least five (5) years prior to appointment;
  4. Have had experience and training in law enforcement work and qualifications identical to that required for members of the Tennessee bureau of investigation; and
  5. Be reimbursed for travel expenses in accordance with the comprehensive travel regulations as promulgated by the department of finance and administration and approved by the attorney general and reporter.

Acts 1963, ch. 257, § 6; 1976, ch. 806, § 1(12); T.C.A., § 57-806.

57-1-108. Interests precluding appointment to or employment by commission.

  1. No person shall be eligible to be appointed as a member of the commission, and no person shall be employed in any capacity by the commission, if such person shall have any interest, financial or otherwise, either direct or indirect, in any distillery, wholesale dealer or retail dealer licensed as such in this state. No family member, including spouse, child or children, father or mother, niece or nephew by blood or marriage, son-in-law or daughter-in-law, shall be employed by any distillery, wholesale dealer or retail dealer, nor shall any family member hold or have issued to them any alcoholic beverage license in this state.
  2. No such person shall have interest of any kind in any building, fixtures, or in the premises occupied by any person, firm or corporation licensed under this chapter.
  3. No such person shall own any stock, nor shall have any interest of any kind, direct or indirect, pecuniary or otherwise, by a loan, mortgage, gift, seeking a loan, or guaranteeing the payment of any loan, in any distillery, wholesale dealer or retail dealer licensed under this chapter.
  4. This section shall not apply to server permits issued under § 57-3-704.

Acts 1963, ch. 257, § 7; T.C.A., § 57-807; 2017, ch. 147, § 1.

Attorney General Opinions. Conflicts of interest, commission members, OAG 94-062, 1994 Tenn. AG LEXIS 65 (4/20/94).

57-1-109. Commissioners prohibited from accepting gifts or bribes — Conspiracy — Penalty.

  1. No member of the commission and no person employed by the commission shall accept any gift, favor, merchandise, donation, contribution, or any article or thing of value, from any person, firm or corporation licensed under this chapter.
  2. No such person shall conspire with any other person to violate this section or attempt to violate this section.
  3. Any person violating this section shall be dismissed and discharged from employment or position, and as a consequence such person shall forfeit any pay or compensation which might be due.
  4. A violation of this section is a Class C misdemeanor.

Acts 1963, ch. 257, § 8; T.C.A., § 57-808; Acts 1989, ch. 591, § 113.

Cross-References. Banks or affiliates of banks, unlawful receipt of gratuity or compensation, §45-2-1704.

Penalty for Class C misdemeanor, §40-35-111.

NOTES TO DECISIONS

1. Favors.

The right to designate the recipient of a valuable financial benefit constituted a favor. Inglewood Warehouse Liquors v. Tennessee Alcoholic Beverage Com., 692 S.W.2d 858, 1985 Tenn. App. LEXIS 2719 (Tenn. Ct. App. 1985).

57-1-110. Offering gifts or bribes to commissioners — Penalty.

When any distillery, wholesaler or retailer licensed under this chapter, or any person employed by any such distillery, wholesaler or retailer, violates, conspires with any other person to violate, or attempts to violate §57-1-109, it is the mandatory duty of the commission to revoke such person's license and permit.

Acts 1963, ch. 257, § 9; T.C.A., § 57-809.

57-1-111. Full-time employment.

The director, the chief law enforcement officer and all other law enforcement personnel shall be employed only on a full-time basis.

Acts 1963, ch. 257, § 10; T.C.A., § 57-810; Acts 2012, ch. 968, § 6.

Cross-References. Duties of secretary of state, §8-3-104.

57-1-112. “Licensed retailer”, “retailer” or “retail licensee” to include retail food store wine licensees.

As used in §§57-1-110,57-3-406(b) and (g) and57-3-204(c), “licensed retailer”, “retailer” or “retail licensee” shall be construed to include and apply to retail food stores which have been issued a retail food store wine license.

Acts 2014, ch. 554, § 4.

Part 2 Powers and Duties of Commission

57-1-201. Transfer of provisions relating to intoxicating beverages — Authority to impose fine instead of license suspension or revocation.

  1. The entire provisions, definitions and terms of chapter 3, parts 1, 2 and 4 of this title, § 57-3-304 and the authority contained therein are hereby transferred and shall be vested under the jurisdiction of the alcoholic beverage commission as though all of the provisions of such sections were set out and copied verbatim herein for the purpose of the commission to carry out this chapter.
      1. In any case where the commission is given the power to suspend or revoke any license or permit, it may impose a fine. Fines imposed shall:
        1. Not exceed five hundred dollars ($500) for servers permitted under § 57-4-203(h) and the Alcohol Server Responsibility and Training Act of 1995, compiled in chapter 3, part 7 of this title;
        2. Not exceed one thousand five hundred dollars ($1,500) for retailers licensed under § 57-3-204; provided, that the commission may impose a fine in excess of one thousand five hundred dollars ($1,500) in accordance with § 57-3-406(d)(3);
        3. Not exceed one thousand five hundred dollars ($1,500) for permittees authorized to sell alcoholic beverages for consumption on the premises under § 57-4-201; provided, that the commission may impose a fine in excess of one thousand five hundred dollars ($1,500) in accordance with § 57-4-203(b)(1)(C);
        4. Not exceed two thousand dollars ($2,000) for wholesalers licensed under § 57-3-203; and
        5. Not exceed ten thousand dollars ($10,000) for manufacturers licensed under chapter 2 of this title or § 57-3-202.
      2. For the purpose of imposing fines hereunder, each violation may be treated as a separate offense.
      3. Notwithstanding subdivision (b)(1)(A), no administrative action, including the imposition of a fine, may be brought against a wholesaler for a violation of § 57-3-301(d) unless, prior to bringing the action, the commissioner of revenue has provided written notice to the wholesaler advising the wholesaler that the tax for a brand of liquor has not been paid by a supplier.
    1. The commission shall deposit collections of any such fine with the state treasurer, for the general funds of the state.
    2. The commission shall promulgate by rule pursuant to the Administrative Procedures Act, compiled in title 4, chapter 5, a schedule setting forth a range of fines for each violation.
  2. Any document a person receives informing the person of having a fine imposed upon such person shall cite each particular rule or statute the person is being charged with violating.
  3. In any case where the commission is authorized to suspend or revoke a license or permit, it may enter into an agreement by order with the licensee or permittee where the licensee or permittee voluntarily surrenders the license or permit. Such surrender shall be deemed a revocation of the license or permit.

Acts 1963, ch. 257, §§ 11-32, 34-49; T.C.A., § 57-811; Acts 1981, ch. 474, § 1; 1985, ch. 76, § 2; 2001, ch. 79, §§ 1-3; 2008, ch. 773, § 1; 2012, ch. 947, § 7; 2016, ch. 898, §§ 1, 4; 2016, ch. 908, § 1; 2017, ch. 147, § 14.

57-1-202. Transfer of provisions relating to contraband liquor.

The duties, authority, powers and functions as contained and enumerated in §57-9-115 and chapter 9, part 2 of this title are hereby transferred and vested in the commission as though the same were set out and copied verbatim herein, for the purpose of carrying out this chapter.

Acts 1963, ch. 258, §§ 2, 3; T.C.A., § 57-812.

57-1-203. Transfer of duties relating to price regulations.

Certain duties, powers and functions authorized under chapter 6, part 2 of this title are hereby transferred and vested in the alcoholic beverage commission as though the same were set out and copied verbatim herein, for the purpose of carrying out this chapter, except those duties, powers, and functions as provided for in §57-1-204.

Acts 1963, ch. 259, § 2; T.C.A., § 57-813.

57-1-204. Department of revenue authority to collect certain taxes and make audits — Appropriation of funds to commission.

  1. The department of revenue shall continue to collect the tax as levied and imposed under § 57-6-201, and the required monthly reports thereunder shall continue to be made to the department.
  2. All such tax collected by the department shall be deposited in the treasury of the state to the credit of and to be used by the commission for the purpose of carrying out this chapter. Such funds are hereby appropriated to the commission for the purpose of the administration and enforcement of the duties, powers and functions of the commission.
  3. The authority now vested in the commissioner of revenue to make the required audits, examinations of books, records and papers, and the filing of invoices, as provided for under § 57-6-202, shall remain vested in the commissioner.

Acts 1963, ch. 259, § 3; T.C.A., § 57-814.

57-1-205. Alcoholic beverage tax collection.

The alcoholic beverage tax levied and authorized to be collected under §§57-3-302 and57-3-303 shall continue to be collected by the commissioner of revenue in the same manner as now prescribed by law.

Acts 1963, ch. 257, § 33; T.C.A., § 57-815.

57-1-206. [Reserved.]

  1. The commissioner of revenue shall make a written report monthly to the alcoholic beverage commission showing the name of each licensed dealer who is delinquent in the payment or remittance of any tax owing to this state, and such report shall show the kind and amount of such delinquent tax. Each page of the written report shall be on paper measuring eight and one-half inches by eleven inches (8½" x 11") and shall contain information on not more than one (1) licensed dealer who is delinquent in the payment or remittance of any tax owing to this state.
  2. Each licensed dealer who is delinquent in the payment or remittance of any of the taxes imposed upon such dealer by law, and who fails, refuses or neglects to pay the tax when due, may have that dealer's license suspended by the commission in its discretion after due notice and hearing as now authorized under § 57-3-214. If a dealer is delinquent in paying the required taxes for as many as three (3) times in a calendar year, the commission may revoke the dealer's license.
  3. The commissioner of revenue shall on or before December 1 of each calendar year furnish to the commission a written report showing the name of each licensed dealer who is delinquent in the payment or remittance of any tax owing to this state. Each page of the written report shall be on paper measuring eight and one-half inches by eleven inches (8½" x 11") and shall contain information on not more than one (1) licensed dealer who is delinquent in the payment or remittance of any tax owing to this state. The report shall include the kind and the amount of such delinquent tax. Any dealer delinquent in taxes shall not have that dealer's license renewed by the commission for the next calendar year until all of the delinquent taxes have been paid, and so certified to the commission by the commissioner of revenue.

Acts 1963, ch. 257, § 33; T.C.A., § 57-817; Acts 1993, ch. 144, § 1; 1999, ch. 403, §§ 3, 4.

Textbooks. Tennessee Jurisprudence, 4 Tenn. Juris., Bankruptcy, § 6.

57-1-208. [Repealed.]

Acts 1979, ch. 394, § 1; T.C.A., § 57-820; Acts 1984, ch. 915, § 2; 2017, ch. 372, § 1; repealed by Acts 2017, ch. 372, § 1, effective January 1, 2018.

Compiler's Notes. Former § 57-1-208, concerning enforcement of §39-17-417(g), was repealed by Acts 2017, ch. 372, § 1, effective January 1, 2018.

57-1-209. Rules and regulations — Annual report.

  1. The commission is hereby authorized to adopt and promulgate the present rules and regulations which are in existence pertaining to alcoholic beverages, and the commission may in its discretion alter, amend or repeal any of such parts of such rules and regulations as it deems necessary. The commission may promulgate rules governing the conduct of educational seminars conducted by businesses licensed pursuant to § 57-3-204, and such regulation may include the transportation and serving for sampling purposes only alcoholic beverages, notwithstanding §§ 57-3-402 and 57-3-404(h).
  2. The executive director of the commission shall file an annual report with the state and local government committee of the senate and the state government committee of the house of representatives no later than March 1 detailing with specificity each rule promulgated during the previous year together with the rationale for promulgating the rule.

Acts 1963, ch. 257, § 14; T.C.A., § 57-818; Acts 1998, ch. 765, § 1; 2012, ch. 947, § 6; 2013, ch. 236, § 68.

Textbooks. Tennessee Jurisprudence, 16 Tenn. Juris., Intoxicating Liquors, §§ 3, 4.

NOTES TO DECISIONS

1. Transfer of Authority.

T.C.A. §57-3-301(g) (now (h)), transferred the rule-making power as to brand registration, formerly under T.C.A. §57-1-209, from the alcoholic beverage commission to the department of revenue. Brown-Forman Distillers Corp. v. Olsen, 676 S.W.2d 567, 1984 Tenn. App. LEXIS 3416 (Tenn. Ct. App. 1984).

57-1-210. Commission — Authority to investigate and/or arrest.

In addition to the other duties imposed under this chapter, the commission is authorized to investigate and/or to arrest, without warrant or process of any kind, any person whom the arresting officer has probable cause to believe is committing or attempting to commit a felony in violation of title 39, chapter 17, part 4, if the felony is committed on premises licensed by the commission, on any premises under investigation by the commission in conjunction with its other duties and responsibilities, and/or any other premises selling alcoholic beverages as defined in §57-3-101, whether licensed or unlicensed.

Acts 1991, ch. 166, § 1.

57-1-211. Warning signs at retail establishments.

  1. Each licensee which sells alcoholic beverages at retail not for consumption on the premises and each licensee which sells alcoholic beverages for consumption on the premises shall post, in a prominent place easily seen by its customers, a warning sign supplied by the alcoholic beverage commission, which meets the requirements of subsections (b) and (c). The signs shall contain a warning that drinking alcoholic beverages during pregnancy can cause birth defects, including fetal alcohol syndrome and fetal alcohol effects.
  2. The alcoholic beverage commission shall prepare the signs required by this section and make them available at no cost to those licensees described in subsection (a) by August 30, 1997, and when a new license is issued to a person for the sale of alcoholic beverages at retail or for consumption on the premises. The bureau of alcohol and drug abuse services shall assist the alcoholic beverage commission in preparing such signs upon request of the commission.
  3. The signs required by this section shall be composed of black, capital letters printed on white laminated paper at a minimum weight of one hundred ten pound (110 lb.) index. The letters comprising the word “WARNING” shall be highlighted black lettering and such word shall be larger than all other lettering on the sign. The size of the sign shall be approximately thirteen inches (13") by nine and one-half inches (9 ½").
  4. If the alcoholic beverage commission finds that a licensee has failed to post the sign required by this section, the alcoholic beverage commission shall notify the licensee in writing of the violation. A licensee who fails to post such sign within twenty-four (24) hours of receiving such written notification shall be subject to a civil penalty not to exceed twenty-five dollars ($25.00) for each day the licensee is in violation.

Acts 1997, ch. 492, § 1; 1998, ch. 765, § 4.

Compiler's Notes. For an Order transferring the bureau of alcohol and drug abuse services from the department of health to the department of mental health and developmental disabilities, except for functions related to the licensing of alcohol and drug abuse counselors, see Executive Order No. 44 (February 23, 2007).

Cross-References. Child abuse and neglect, §39-15-401.

57-1-212. Retired agents' service weapons after twenty-five (25) years of service.

Any agent of the alcoholic beverage commission who retires after twenty-five (25) years of honorable service shall be issued by the commission a retired commission card, which shall identify the agent, the agent’s department and rank, and the fact that the agent is retired. Cards issued under this provision shall bear the inscription, in print of equal or larger size than the rest of the printing on the card, the words “Not a handgun permit.” After twenty-five (25) years of honorable service as an agent of the commission, the commission shall authorize the agent, upon retirement, to retain the agent’s service weapon, in recognition of the agent’s many years of good and faithful public service.

T.C.A., § 38–6–105(b).

Code Commission Notes.

This section was transferred from former §38-6-105(b) by the code commission in 2006.

57-1-213. Assessment of costs of hearing held in accordance with contested case provisions.

  1. Notwithstanding any other law to the contrary, the alcoholic beverage commission may assess the actual and reasonable costs of any hearing held in accordance with the contested case provisions of the Uniform Administrative Procedures Act, compiled in title 4, chapter 5, part 3, and in which sanctions of any kind are imposed on any person or entity required to be licensed, permitted, registered or otherwise authorized by the commission. These costs may include, but are not limited to, those incurred and assessed for the time of the prosecuting attorneys, investigators, expert witnesses, administrative judges and any other persons involved in the investigation, prosecution and hearing of the action.
  2. The commission shall promulgate rules and regulations establishing a schedule of costs that may be assessed pursuant to this section. All such rules and regulations shall be promulgated in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5.
    1. All costs assessed pursuant to this section shall become final thirty (30) days after the date a final order of assessment is served.
    2. If the individual or entity disciplined fails to pay an assessment when it becomes final, the commission may apply to the appropriate court for a judgment and seek execution of the judgment.
    3. Jurisdiction for recovery of the costs shall be in the chancery court of Davidson County.

Acts 2012, ch. 1063, § 1.

57-1-214. Suspension or revocation of license to sell alcoholic beverages and beer or malt beverages.

    1. In any county other than those included in §§ 57-4-202(d) and 57-5-108(p), if the alcoholic beverage commission suspends or revokes a license to sell alcoholic beverages on the premises at any establishment for any violation or violations as provided in chapter 4 of this title, then the commission shall notify the local beer board responsible for controlling the sale of beer or malt beverages within such county by certified mail, return receipt requested, of the action taken by the commission. Such notice shall include the record of evidence and the determination made by the commission in suspending or revoking the license of the establishment.
    2. Upon receipt of such notice, the local beer board may temporarily suspend the beer permit of the establishment and shall:
      1. Schedule a hearing for the next regularly scheduled meeting of the local beer board to be held at least fourteen (14) days following the date the local beer board receives the certified letter to provide an opportunity for the permit holder to appear and show cause why the permit to sell beer on the premises should not be suspended or revoked for a violation or violations as provided in chapter 4 of this title, based on actions taken by the commission; and
      2. Notify the individual or business entity, which is listed as the permit holder at the same location where the alcoholic beverage license had been suspended or revoked, of the date and time of the hearing.
    3. If the local beer board finds at a hearing that a sufficient violation or violations have occurred as provided in chapter 4 of this title, at such location, then the local beer board may suspend or revoke the permit to the same extent and at least for the same period of time as the commission has suspended or revoked the license of the establishment.
    4. If the permit holder fails to appear or decides to surrender the permit to the local beer board in lieu of appearing at the hearing, the permit may be suspended or revoked by the local beer board; provided, that if the permit is suspended or revoked, no permit to sell beer or malt beverages on the premises shall be issued by the local beer board to any person for the location where the commission had suspended or revoked the license for the period of time included in the decision of the commission.
    5. The decision of the local beer board is final, and any party aggrieved thereby may appeal the decision of the local beer board in accordance with § 57-5-108.
    1. In any county other than those included in §§ 57-4-202(d) and 57-5-108(p), if a local beer board responsible for controlling the sale of beer or malt beverages finds a violation or violations, as provided in chapter 4 of this title, in the sale of beer or malt beverages consumed on-premises of an establishment located within the local beer board's jurisdiction that result in the local beer board suspending the operation of or revoking the permit of the establishment where the violation or violations occurred, then the local beer board shall notify the executive director of the commission by certified mail, return receipt requested, of the action taken by the local beer board. Such notice shall include the record of evidence and the determination made by the local beer board in suspending or revoking the permit.
    2. Upon receipt of such notice, the executive director of the commission may take the action with respect to a violation or violations as provided in chapter 4 of this title, related to the license for the sale of alcoholic beverages for consumption on the premises at the location where the violation or violations of the chapter occurred.
    3. The suspension or revocation decision of the local beer board made pursuant to this subsection (b) is final, and any party aggrieved thereby may appeal the decision of the local beer board in accordance with § 57-5-108.

Acts 2013, ch. 316, § 1.

57-1-207. Delinquent tax — Penalty — Reports.

Chapter 2 Local Option—Manufacture Only

57-2-101. “Intoxicating liquors” and “intoxicating drinks” defined — Fuel alcohol exception.

  1. “Intoxicating liquors” or “intoxicating drinks,” as defined in this chapter, means and includes alcohol, spirits, liquors, wines and every liquid or solid, patented or not, containing alcohol, spirits, liquor or wine, and capable of being consumed by human beings; but nothing in this chapter shall be construed or defined as including or relating to the manufacture of beer as defined in § 57-5-101(b).
  2. This title shall not apply to fuel alcohol as it is defined in § 67-3-1203, and this title shall not apply to ethanol that is produced in a facility whose production process is primarily a wet milling process, sold and transported in bulk lots of five thousand gallons (5,000 gals.) or more and not packaged for retail sale by the holder of a valid alcohol fuels permit or a valid distilled spirits permit:
    1. For export to another country;
    2. To a domestic manufacturer, distiller, vintner, or rectifier who is a duly licensed alcohol beverage or liquor manufacturer in this or some other state; or
    3. To a manufacturer who uses the ethanol to create a product which is incapable of human consumption or contains less than one-half of one percent (0.5%) alcohol by volume.
  3. This title shall not apply to the production of products that have received approval from the alcohol and tobacco tax and trade bureau (TTB) as a non-beverage product.

Acts 1937, ch. 193, § 2; C. Supp. 1950, § 6648.2; T.C.A. (orig. ed.), § 57-103; Acts 1980, ch. 786, § 3; 1997, ch. 155, § 1; 2012, ch. 968, § 1; 2014, ch. 861, § 3; 2017, ch. 338, § 5.

Cross-References. Beer wholesaler-supplier relations, title 57, ch. 5, part 5.

Definition of ethanol, §67-3-103.

Textbooks. Tennessee Jurisprudence, 16 Tenn. Juris., Intoxicating Liquors, §§ 2, 5, 6, 8.

NOTES TO DECISIONS

1. Constitutionality.

Failure of original act to recite in its caption that it had the effect of amending former T.C.A. §§39-6-916 and39-6-917 did not cause such act to be unconstitutional under the provisions of Tenn. Const., art. II, § 17, since such constitutional provision does not apply to acts which by their positive provisions operate to repeal or annul previous acts by necessary implication. Clark v. State, 172 Tenn. 429, 113 S.W.2d 374, 1937 Tenn. LEXIS 92 (1938).

57-2-102. [Repealed.]

Acts 1937, ch. 193, § 1; C. Supp. 1950, § 6648.1; impl. am. Acts 1959, ch. 9, § 14; impl. am. Acts 1978, ch. 934, §§ 7, 36; T.C.A. (orig. ed.), § 57-102; repealed by Acts 2019, ch. 301, § 1, effective May 8, 2019.

Compiler's Notes. Former §57-2-102 concerned privilege taxes on manufacturer — license.

57-2-103. Manufacturing of intoxicating liquors — Petition — Election.

  1. The county legislative body of any county shall have the right and power, and such county authorities shall have the duty, to call and direct the county election commission to hold an election at any time, upon the filing and presentation of a petition bearing the genuine signatures of ten percent (10%) or more of the qualified voters of such county, based upon the number of votes cast in the last preceding presidential election in such county. Such petition shall be addressed to the county legislative body, and shall contain such language as to request, or to call upon the county legislative body, to call an election of the qualified voters of the county upon the question of permitting and legalizing the manufacture of intoxicating liquors and other intoxicating drinks within the boundaries of the county.
  2. Upon the adoption of a motion or resolution by the county legislative body directing the holding of an election, the county clerk shall file a certified copy of the motion or resolution with the county election commission.
  3. If a majority of the qualified votes cast in such election, in a county so holding an election, favors the manufacture of intoxicating liquors or other intoxicating drinks, as herein provided, in that event, it shall be lawful to manufacture intoxicating liquors and/or intoxicating drinks within the boundaries of such county.
    1. Notwithstanding subsections (a)-(c), it shall be lawful to manufacture intoxicating liquors or intoxicating drinks, or both, within the boundaries of:
      1. A municipality if both retail package sales and consumption of alcoholic beverages on the premises have been approved through referendum of voters within such municipality;
      2. A municipality that has approved consumption of alcoholic beverages on the premises within the municipality by local option election and that is located in a county having a population of not less than forty-eight thousand five hundred (48,500) and not more than forty-eight thousand six hundred (48,600), according to the 2010 federal census or any subsequent federal census;
      3. The unincorporated areas of a county, or a municipality which has a population of less than one thousand (1,000) persons in such county, if any jurisdiction located within such county has approved retail package sales through referendum of voters and any jurisdiction located within such county has approved consumption of alcoholic beverages on the premises through referendum of voters or if the county is included in the Tennessee River resort district as defined in § 57-4-102 and retail package sales have been approved through referendum by the voters in any jurisdiction within such county;
      4. Any municipality authorized under § 57-4-102(27) to allow facilities or establishments in such municipality to sell alcoholic beverages or wine for on premises consumption;
      5. Any county or municipality where it was lawful to have manufacturing of intoxicating liquors or intoxicating drinks, or both under this subsection (d) as it read prior to July 1, 2013; or
      6. Any county that has at least three (3) establishments, located in such county or in any municipality in such county, licensed under § 57-4-102(27) to sell alcoholic beverages for on-premises consumption if such county was included in this subsection (d) as it read prior to July 1, 2013.
      1. Notwithstanding subdivision (d)(1), the county legislative body of any such county may adopt a resolution to remove the unincorporated areas of the county from the application of this subsection (d) subject to the restrictions in subdivision (d)(2)(B). The county mayor shall notify the alcoholic beverage commission if such action is taken and approved.
      2. Such action may be taken by the county legislative body pursuant to subdivision (d)(2)(A) until a written notification is filed with the county mayor by any person as an official notice that the person intends to pursue all lawful avenues to manufacture intoxicating liquors or intoxicating drinks, or both, within the unincorporated areas of the county. Once the notice is filed, no action may be taken by the county legislative body unless such interest is withdrawn or the person's application to manufacture such intoxicating liquors or intoxicating drinks, or both, is denied by the state or federal government. A written notification as described pursuant to this subdivision (d)(2)(B) may not be filed with the county mayor until at least forty-five (45) days after July 1, 2013.
      3. If a county adopts a resolution pursuant to subdivision (d)(2)(A), the county may at a later date adopt a resolution reversing such action. The county mayor shall notify the alcoholic beverage commission if such action is taken and approved.
      1. Notwithstanding subdivision (d)(1), the legislative body of any municipality may adopt a resolution to remove the municipality from the application of this subsection (d) subject to the restrictions in subdivision (d)(3)(B). The legislative body of the municipality shall notify the alcoholic beverage commission if such action is taken and approved.
      2. Such action may be taken by the legislative body of the municipality pursuant to subdivision (d)(3)(A) until a written notification is filed with the legislative body of the municipality by any person as an official notice that the person intends to pursue all lawful avenues to manufacture intoxicating liquors or intoxicating drinks, or both, within the boundaries of the municipality. Once the notice is filed, no action may be taken by the legislative body of the municipality unless such interest is withdrawn or the person's application to manufacture such intoxicating liquors or intoxicating drinks, or both, is denied by the state or federal government. A written notification as described pursuant to this subdivision (d)(3)(B) may not be filed with the legislative body of the municipality until at least forty-five (45) days after July 1, 2013.
      3. If a municipality adopts a resolution pursuant to subdivision (d)(3)(A), the municipality may at a later date adopt a resolution reversing such action. The legislative body of the municipality shall notify the alcoholic beverage commission if such action is taken and approved.
    2. If a manufacturer that has been issued a license pursuant to this subsection (d) is also selling the manufacturer's alcoholic beverages or products at retail and the manufacturer is located in a jurisdiction that pursuant to § 57-5-105 has established a distance requirement that restricts the storage, sale or manufacture of beer from places of public gatherings or in a municipality or Class B county that pursuant to § 57-5-106 has adopted proper ordinances governing the storage, sale, manufacture and/or distribution of beer within its jurisdictional boundary, then any distance requirement related to a building used for religious purposes or a building used as an elementary or secondary school in effect in that jurisdiction shall apply to the building used for the retail sale of the manufacturer's alcoholic beverages or products containing alcohol. The measurement shall be a building-to-building measurement.
    3. Notwithstanding subsections (a)-(c) and subdivision (d)(1), it shall be lawful to manufacture intoxicating liquors or intoxicating drinks, or both, on property that is listed on the National Register of Historic Places and where intoxicating liquors or intoxicating drinks, or both, were previously distilled on such property, or approximately on such property.
    4. A municipality as described in § 57-4-102(27)(B) may adopt an ordinance imposing a minimum distance, not to exceed one thousand feet (1,000'), between distilleries manufacturing distilled spirits; provided, that the ordinance shall not apply to or affect any licensed distillery in operation and open to the public prior to April 12, 2016. A distillery that is exempt from an ordinance adopted under this subdivision (d)(6) shall remain exempt from any ordinance adopted under this subdivision (d)(6) upon the transfer of any ownership interest in the distillery to a successor in interest.
  4. Any manufacturer's license issued pursuant to subsection (c) or (d) shall comply with § 57-3-202.
    1. Notwithstanding subsections (a)-(c), it shall be lawful to manufacture high alcohol content beer as defined in § 57-3-101(a) within the boundaries of:
      1. A municipality if both retail package sales and consumption of alcoholic beverages on the premises have been approved through voter referendum of voters within such municipality; or
      2. The unincorporated areas of a county if any jurisdiction located within such county has approved retail package sales through referendum of voters and any jurisdiction located within such county has approved consumption of alcoholic beverages on the premises through referendum of voters or if the county is included in the Tennessee River resort district as defined in § 57-4-102 and retail package sales have been approved through voter referendum in any jurisdiction within the county.
    2. Any manufacturer authorized pursuant to subdivision (f)(1) must also hold a brewer's notice approved by the United States department of the treasury, alcohol and tobacco tax and trade bureau, or any successor federal beer manufacturing permit granted by a federal bureau having jurisdiction over the manufacture of beer.
    3. In all jurisdictions not meeting the requirements of subdivision (f)(1), it shall be lawful to manufacture high alcohol content beer as defined in § 57-3-101(a) within the boundaries of a municipality or in the unincorporated area of such county upon such jurisdiction meeting the requirements of subsections (a)-(c), and if the manufacturer also holds a brewer's notice approved by the United States department of the treasury, alcohol and tobacco tax and trade bureau, or any successor federal beer manufacturing permit granted by a federal bureau having jurisdiction over the manufacture of beer.
    4. Notwithstanding any other law to the contrary, it shall be lawful for any manufacturer of high alcohol content beer authorized to manufacture such beverages pursuant to subdivision (f)(1) to also brew beer as this term is defined in § 57-5-101(b) on the same premises of the manufacturer of high alcohol content beer, upon meeting necessary federal, state and local license requirements.
    5. The general assembly hereby ratifies any action which may have been taken by the alcoholic beverage commission in issuing a license to a manufacturer of high alcohol content beer prior to June 10, 2011.
  5. The general assembly hereby ratifies any action which may have been taken by the alcoholic beverage commission in issuing a license to a manufacturer of intoxicating liquors or intoxicating drinks, or both prior to July 1, 2013.
    1. Any person who has received a manufacturing license for intoxicating liquors or intoxicating drinks, or both from the alcoholic beverage commission or who has an application for such manufacturing license pending with the commission on July 1, 2013, may still receive and be able to renew the license if the person was authorized to apply for such license under this section prior to July 1, 2013.
    2. Any person who has received the necessary permit to manufacture intoxicating liquors or intoxicating drinks, or both from the alcohol and tobacco tax and trade bureau (TTB) or who has an application for such permit pending with the TTB on July 1, 2013, may still receive and be able to renew a manufacturing license from the alcoholic beverage commission if the person was authorized to apply for such manufacturing license under this section prior to July 1, 2013.
    3. If any person obtains a manufacturing permit pursuant to this subsection (h), then the jurisdiction such licensee is located in shall be allowed to have other manufacturers located in such jurisdiction, notwithstanding subdivision (d)(1).

Acts 1937, ch. 193, § 1; C. Supp. 1950, § 6648.1; impl. am. Acts 1953, ch. 88, § 1; Acts 1972, ch. 740, § 4(65); impl. am. Acts 1978, ch. 934, §§ 7, 22, 36; T.C.A. (orig. ed.), § 57-101; Acts 2009, ch. 524, § 1; 2011, ch. 448, § 12; 2012, ch. 515, § 1; 2013, ch. 445, §§ 1, 2; 2014, ch. 875, § 1; 2016, ch. 786, § 1; 2018, ch. 650, § 1.

Compiler's Notes. For tables of population of Tennessee municipalities, see Volume 13 and its supplement.

Amendments. The 2018 amendment added present (d)(1)(B) and redesignated former (d)(1)(B)-(E) as present (d)(1)(C)-(F), respectively.

Effective Dates. Acts 2018, ch. 650, § 2. April 9, 2018.

Textbooks. Tennessee Jurisprudence, 16 Tenn. Juris., Intoxicating Liquors, §§ 6, 14, 22; 18 Tenn. Juris., Mandamus, § 9.

Attorney General Opinions. Manufacture of intoxicating liquors in Hamilton County.  OAG 12-93, 2012 Tenn. AG LEXIS 91 (10/3/12).

NOTES TO DECISIONS

1. Constitutionality.

Local option provision of this section was a “condition” within the meaning of the caption of the original act providing for the manufacture of intoxicating liquors “under certain conditions” so that the act was not unconstitutional as embracing more than one subject or as embracing a subject not expressed in the title. Clark v. State, 172 Tenn. 429, 113 S.W.2d 374, 1937 Tenn. LEXIS 92 (1938).

Provision of this section permitting local option by the counties on question of whether or not such counties would permit the manufacture of intoxicating liquors is not unconstitutional as being a delegation of legislative power to the voters of the various counties since the vote was not for or against the statute as such statute was complete in itself and only its local operative effect was left to the people of the various counties. Clark v. State, 172 Tenn. 429, 113 S.W.2d 374, 1937 Tenn. LEXIS 92 (1938).

2. Calling of Election.

This section is mandatory in requiring the county legislative body to call an election for the purposes set forth therein when a petition is filed bearing the genuine signatures of ten percent or more of the qualified voters of such county based on the number of votes cast in the last preceding presidential election. State ex rel. Motlow v. Clark, 173 Tenn. 81, 114 S.W.2d 800, 1937 Tenn. LEXIS 15 (1938).

The fact that the county legislative body can inquire into the sufficiency of a petition filed under this section and into the qualifications of the signers thereto in no way can affect the mandatory duty of the body to call the election if the petition is found to be in proper form and properly signed. State ex rel. Motlow v. Clark, 173 Tenn. 81, 114 S.W.2d 800, 1937 Tenn. LEXIS 15 (1938).

3. Mandamus to Compel Election.

A demurrer to a bill for a writ of mandamus compelling the county legislative body to adopt a resolution directing the county election commission to call an election on the question of legalizing the manufacture of intoxicating liquors in the county admitted an averment in the bill that a proper petition was filed with the body in accordance with the statute. State ex rel. Motlow v. Clark, 173 Tenn. 81, 114 S.W.2d 800, 1937 Tenn. LEXIS 15 (1938).

57-2-104. Possession, storage or transportation by manufacturer lawful — Rights limited.

A manufacturer licensed pursuant to §57-2-102 [repealed], or the authorized agent of such licensee, may possess, store, or transport the products of the manufacturing plant within, over, and across the state; provided, that any alcoholic beverages or wine produced at a plant located within this state must be stored within a county that has authorized the manufacture of intoxicating liquors pursuant to §57-2-103 or in a county adjacent to a county that has authorized the manufacturing operation, and such possession shall be limited to storage facilities owned, authorized, or leased by such manufacturer; and further provided, that such licensee may also possess such alcoholic beverages or wine while being transported, whether within or outside of the state. Common carriers may transport the products of such manufacturing plant only pursuant to an agreement or contract with a licensee under this title.

Acts 1937, ch. 193, § 3; C. Supp. 1950, § 6648.3; T.C.A. (orig. ed.), § 57-104; Acts 2011, ch. 448, § 4; 2013, ch. 341, § 2; 2018, ch. 717, § 1.

Compiler's Notes. Section 57-2-102, referred to in this section, was repealed by Acts 2019, ch. 301, § 1.

Amendments. The 2018 amendment rewrote the section which read: “It is lawful for the holder of a license issued pursuant to §57-2-102, or the authorized agent of such licensee, to possess, store or transport the products of the manufacturing plant within, over and across the state; provided, that any alcoholic beverages or wine produced at a plant located within this state shall be stored by the licensee only within the county authorizing the operation or in a county adjacent to the county authorizing the manufacturing operation, and such possession shall be limited to storage facilities of such manufacturer; and further provided, that such licensee may also possess such alcoholic beverages or wine while being transported, whether within or outside of the state. It is lawful for common carriers to transport the products of such manufacturing plant only pursuant to an agreement or contract with a licensee under this title.”

Effective Dates. Acts 2018, ch. 717, § 2. April 12, 2018.

NOTES TO DECISIONS

1. Constitutionality.

Fact that intoxicating liquors manufactured under the local option provisions of title 57, ch. 2 could not be sold to people of Tennessee but could be sold to citizens of other states did not render such act unconstitutional as being class legislation and discriminatory. Clark v. State, 172 Tenn. 429, 113 S.W.2d 374, 1937 Tenn. LEXIS 92 (1938).

57-2-105. Restrictions on sale within state.

  1. Except as otherwise provided by law, nothing in this chapter shall be construed as licensing or legalizing the sale of intoxicating liquors and/or other intoxicating drinks within the state by any distillery or manufacturing plant authorized under this chapter.
  2. Nothing in this chapter shall be construed so as to repeal, or in any manner abridge or affect the present laws of this state concerning the sale of intoxicating liquors of every kind.

Acts 1937, ch. 193, § 1; C. Supp. 1950, § 6648.1; modified; T.C.A. (orig. ed.), § 57-105; Acts 2011, ch. 448, § 5.

Textbooks. Tennessee Jurisprudence, 16 Tenn. Juris., Intoxicating Liquors, § 6.

57-2-106. Restrictions on labeling of intoxicating liquors as Tennessee whiskeys.

  1. An intoxicating liquor may not be advertised, described, labeled, named, sold or referred to for marketing or sales purposes as “Tennessee Whiskey,” “Tennessee Whisky,” “Tennessee Sour Mash Whiskey,” or “Tennessee Sour Mash Whisky” unless the intoxicating liquor is:
    1. Manufactured in Tennessee;
    2. Made of a grain mixture that is at least fifty-one percent (51%) corn;
    3. Distilled to no more than one hundred sixty (160) proof or eighty percent (80%) alcohol by volume;
    4. Aged in new, charred oak barrels in Tennessee;
    5. Filtered through maple charcoal prior to aging;
    6. Placed in the barrel at no more than one hundred twenty-five (125) proof or sixty-two and one-half percent (62.5%) alcohol by volume; and
    7. Bottled at not less than eighty (80) proof or forty percent (40%) alcohol by volume.
  2. Any manufacturer who violates this section shall be subject to suspension or revocation of its license for a period of not less than one (1) year.
  3. Subdivision (a)(5) shall not apply to intoxicating liquor manufactured at a distillery located in a county that authorized the manufacturing process by referendum after January 1, 1979, and prior to January 1, 1980; provided, however, that any such distillery was first licensed by the state alcoholic beverage commission after January 1, 2000, and before January 1, 2001.
    1. Any Tennessee corporation, limited liability company or proprietorship that holds a federal distiller basic permit pursuant to 27 U.S.C. § 204 and had a licensed manufacturing operation in this state as of January 1, 2013, may label, market and sell any product owned or contracted to purchase by such permit holder on or after July 1, 2013, for a period of thirty-six (36) months; provided, however, that any product manufactured at such distillery after July 1, 2013, shall meet all the requirements of subsection (a) to be advertised, described, labeled, named, sold or referred to for marketing or sales purposes as “Tennessee Whiskey,” “Tennessee Whisky,” “Tennessee Sour Mash Whiskey,” or “Tennessee Sour Mash Whisky”.
    2. This subsection (d) shall apply to any product that is referred to as “Tennessee Whiskey,” “Tennessee Whisky,” “Tennessee Sour Mash Whiskey,” or “Tennessee Sour Mash Whisky” under 27 CFR part 5 on July 1, 2013.

Acts 2013, ch. 341, § 1.

Attorney General Opinions. T.C.A. §57-2-106(c) constitutes impermissible discrimination in violation of the equal protection provisions of the Fourteenth Amendment to the United States Constitution, as well as impermissible class legislation in violation of article XI, section 8, of the Tennessee Constitution.  OAG 15-23, 2015 Tenn. AG LEXIS 23 (3/18/15).

57-2-107. Hours of sale for licensed manufacturer to sell at retail.

The hours of sale for a manufacturer licensed to sell products at retail under §57-3-204(e) shall be the same as for a manufacturer licensed to sell products at retail under §57-3-202.

Acts 2013, ch. 341, § 3.

57-2-108. Use of name “Tennessee Moonshine”.

  1. Beginning July 1, 2016, an intoxicating liquor may not be advertised, described, labeled, named, sold, or referred to for marketing or sales purposes as “Tennessee Moonshine” unless the intoxicating liquor is distilled in Tennessee.
  2. Any manufacturer who violates this section shall be subject to suspension or revocation of its license for a period of not less than one (1) year.

Acts 2015, ch. 428, § 6.

57-2-109. Adoption of ordinance to prohibit construction or operation of licensed manufacturer under § 57-3-202 — Applicability.

Any city with a population of no less than five thousand eight hundred seventy (5,870) and no greater than five thousand eight hundred seventy-nine (5,879), according to the 2010 federal census or any subsequent federal census may adopt an ordinance to prohibit the construction or operation of any licensed manufacturer in §57-3-202 within one thousand feet (1,000') of the state right-of-way of U.S. Highway 441 within the corporate limits of such city. This section shall not affect any licensed manufacturer in operation and open to the public before or on March 24, 2016.

Acts 2016, ch. 695, § 1.

Complier's Notes. For table of U.S. decennial populations of Tennessee municipalities, see Volume 13 and its supplement.

Chapter 3 Local Option—Traffic in Intoxicating Liquors

Part 1 General Provisions

57-3-101. Title definitions.

  1. As used in this title, unless the context requires otherwise:
      1. “Alcoholic beverage” or “beverage” means and includes alcohol, spirits, liquor, wine, high alcohol content beer, and every liquid containing alcohol, spirits, wine, and high alcohol content beer and capable of being consumed by a human being, other than patent medicine or beer, as defined in § 57-5-101. Notwithstanding any provision to the contrary in this title, except for beer as defined in § 57-5-101(b), “alcoholic beverage” or “beverage” also includes any liquid product containing distilled alcohol capable of being consumed by a human being, manufactured or made with distilled alcohol, regardless of alcohol content. Liquid products intended for beverage purposes containing alcohol that do not meet the definition of beer under § 57-5-101(b) shall also be alcoholic beverages. Notwithstanding this subdivision (a)(1)(A), products or beverages containing less than one-half of one percent (0.5%) alcohol by volume, other than wine as defined in this section, shall not be considered to be alcoholic beverages, and shall not be subject to regulation or taxation pursuant to chapters 1-6 and 9 of this title.
      2. Notwithstanding this definition, ethanol produced in a facility whose production process is primarily a wet milling process in bulk and sold and transported in bulk lots of five thousand gallons (5,000 gals.) or more and not packaged for retail sale by the holder of a valid alcohol fuels permit or a valid distilled spirits permit:
        1. For export to another country;
        2. To a domestic manufacturer, distiller, vintner, or rectifier who is a duly licensed alcohol beverage or liquor manufacturer in this or some other state; or
        3. To a manufacturer who uses the ethanol to create a product which is incapable of human consumption or contains less than one-half of one percent (0.5%) alcohol by volume;

        shall not be considered to be an alcoholic beverage and shall not be subject to regulation or taxation pursuant to chapters 1-6 and 9 of this title;

    1. “Commission” means the alcoholic beverage commission, except as otherwise provided;
    2. “Distiller” means any person who owns, occupies, carries on, works, conducts or operates any distillery either personally or by an agent;
    3. “Distillery” means and includes any place or premises wherein any liquors are manufactured for sale;
    4. “Federal license” does not mean tax receipt or permit;
    5. “Gallon” or “gallons” means a wine gallon or wine gallons, of one hundred and twenty-eight ounces (128 oz.);
    6. “Gift” means and includes the unauthorized distribution of alcoholic beverages by a licensee for which no payment is expected or received; provided, however, that it does not include any such transaction between a licensee and its employee or employees in the normal course of employment or depletions from a licensee's inventory related to routine business or marketing purposes where all applicable taxes have been paid;
    7. “High alcohol content beer” means an alcoholic beverage which is beer, ale or other malt beverage having an alcoholic content of more than eight percent (8%) by weight and not more than twenty percent (20%) by weight, except wine as defined in § 57-3-101, that is brewed, regulated, distributed or sold pursuant to chapter 3 of this title; provided, that no more than forty-nine percent (49%) of the overall alcoholic content of such beverage may be derived from the addition of flavors and other nonbeverage ingredients containing alcohol;
    8. “Importer” means any person or entity holding a non-manufacturer non-resident seller's permit pursuant to § 57-3-602(c) or any entity causing alcoholic beverages to be delivered or shipped into this state holding an importer's basic permit from the alcohol and tobacco tax and trade bureau of the United States department of the treasury;
    9. “License” means the license issued pursuant to this chapter;
    10. “Licensee” means any person to whom such license has been issued pursuant to this chapter;
    11. “Manufacture” means and includes brewing high alcohol content beer, distilling, rectifying and operating a winery;
    12. “Manufacturer” means and includes a brewer of high alcohol content beer, distiller, vintner and rectifier;
    13. “Municipality” means an incorporated town or city having a population of nine hundred twenty-five (925) persons or over by the federal census of 1950 or any subsequent federal census; provided, however, that when any incorporated town or city by ordinance authorizes a census to be taken of such incorporated town or city and shall furnish to the commission a certified copy of the census containing the name, address, age and sex of each person enumerated therein, and if the census shall show that the incorporated town or city has a population of nine hundred twenty-five (925) persons or over, the commission, upon verification of the census, may declare such incorporated town or city to be a “municipality” for all intents and purposes of this chapter;
    14. “Pint” means one eighth (1/8) of a wine gallon;
    15. “Quart” means one fourth (¼) of a wine gallon;
    16. “Rectifier” means and includes any person who rectifies, purifies or refines distilled spirits or wines by any process other than as provided for on distillery premises, and every person who, without rectifying, purifying or refining distilled spirits, shall, by mixing such spirits, wine or other liquor with any material, manufacture any imitation of, or compounds liquors for sale under the name of, whiskey, brandy, gin, rum, wine, spirits, cordials, bitters or any other name;
    17. “Retail food store wine license” means a license for the sale of wine at retail in a retail food store as defined in part 8 of this chapter;
    18. “Retailer” means any person who sells at retail any beverage for the sale of which a license is required under this chapter;
    19. “Retail sale” or “sale at retail” means a sale to a consumer or to any person for any purpose other than for resale; provided, however, that it does not include any transaction between a licensee and its employee or employees in the normal course of employment for which no payment is expected or received or depletions from a licensee's inventory related to routine business or marketing purposes where all applicable taxes have been paid;
    20. “Vintner” means any person who owns, occupies, carries on, works, conducts or operates any winery, either personally or by an agent;
    21. “Wholesaler” means any person who sells at wholesale any beverage for the sale of which a license is required under this chapter;
    22. “Wholesale sale” or “sale at wholesale” means a sale to any person for purposes of resale, except that sales by a person licensed under § 57-3-204 to a charitable, nonprofit, or political organization possessing a valid special occasion license for resale by such organizations pursuant to their special occasion license shall not be construed as such a sale;
    23. “Wine” means the product of the normal alcoholic fermentation of the juice of fresh, sound, ripe grapes, with the usual cellar treatment and necessary additions to correct defects due to climatic, saccharine and seasonal conditions, including champagne, sparkling and fortified wine of an alcoholic content not to exceed twenty-one percent (21%) by volume. No other product shall be called “wine” unless designated by appropriate prefixes descriptive of the fruit or other product from which the same was predominantly produced, or an artificial or imitation wine; and
    24. “Winery” means and includes any place or premises wherein wines are manufactured from any fruit or brandies distilled as the by-product of wine or other fruit or cordials compounded, and also includes a winery for the manufacture of wine.
  2. Words importing the masculine gender include the feminine and the neuter, and the singular includes the plural.

Acts 1939, ch. 49, §§ 3, 4, 13; 1949, ch. 284, § 9; C. Supp. 1950, §§ 6648.4, 6648.19 (Williams, §§ 6648.6, 6648.7, 6648.16); Acts 1955, ch. 347, § 2A; impl. am. Acts 1959, ch. 9, § 14; Acts 1963, ch. 257, § 11; modified; T.C.A. (orig. ed.), § 57-106; Acts 1981, ch. 404, § 4; 1982, ch. 877, § 5; 1983, ch. 229, § 4; 1986, ch. 516, § 1; 1989, ch. 325, § 1; 1991, ch. 58, § 1; 1997, ch. 155, § 2; 2005, ch. 298, § 1; 2009, ch. 395, §§ 1, 2; 2011, ch. 448, §§ 7-11; 2014, ch. 554, § 6; 2014, ch. 767, § 3; 2014, ch. 861, § 1; 2015, ch. 269, § 1.

Compiler's Notes. This chapter, to the extent that the provisions hereof are in direct conflict with the provisions of §§12-2-20112-2-204, as to the authority vested by such sections in the commissioner of general services for the advertising and sale of contraband intoxicating beverages and motor vehicles, is repealed by Acts 1959, ch. 303, § 5.

For tables of populations of Tennessee municipalities, see Volume 13 and its supplement.

Textbooks. Tennessee Jurisprudence, 16 Tenn. Juris., Intoxicating Liquors, §§ 2, 5-9, 11, 12, 16, 23.

Law Reviews.

Selected Tennessee Legislation of 1986, 54 Tenn. L. Rev. 457 (1987).

The Wine Is In the Mail: The Twenty-First Amendment and State Laws Against the Direct Shipment of Alcoholic Beverages, 54 Vand. L. Rev. 2495 (2001).

Attorney General Opinions. Applicability to foodstuff products, OAG 90-31, 1990 Tenn. AG LEXIS 38 (3/7/90).

Hard cider, OAG 94-75, 1994 Tenn. AG LEXIS 78 (7/8/94).

Because a county previously approved liquor-by-the-drink sales through a county-wide referendum, this referendum made such sales legal within a city meeting the definition of a municipality under T.C.A. §57-3-101; further, the exclusion of certain municipalities from the effects of a county-wide referendum as described in T.C.A. §57-3-106(g)(1) did not apply to the city because its population is, and always has been, smaller than the least populous county according to the 1960 and subsequent censuses, OAG 02-092, 2002 Tenn. AG LEXIS 97 (8/28/02).

NOTES TO DECISIONS

1. Legislative Authority to Regulate Liquor.

The right of the state to regulate liquor traffic does not flow from the prohibition amendment, but flows from its police power which was all powerful to deal with the subject of police power regulation unless it distinctly contravened such amendment. State ex rel. Major v. Cummings, 178 Tenn. 378, 158 S.W.2d 713, 1941 Tenn. LEXIS 68, 139 A.L.R. 837 (1942).

2. Nature of Statute.

This statute cannot have effect save as a local option law. Akers v. State, 175 Tenn. 674, 137 S.W.2d 281, 1939 Tenn. LEXIS 91 (1940).

Title 57, ch. 3, is not a local law, in the sense of being passed for the benefit of a particular county only, but is a general statewide law, applicable to the entire state, but effective for its general purposes in such counties only as may adopt it. Vickers v. State, 176 Tenn. 415, 142 S.W.2d 188, 1939 Tenn. LEXIS 132 (1940).

Municipalities may exercise a degree of reasonable regulation after the license is issued, but prior thereto their sole power is to grant or withhold certificates based upon the applicant's character. Chattanooga v. Tennessee Alcoholic Beverage Com., 525 S.W.2d 470, 1975 Tenn. LEXIS 658 (Tenn. 1975).

3. Application.

Title 57, ch. 3 has application only: (1) In excepted territory, when carved out by local will; and (2) Under exceptional circumstances and on specific conditions definitely detailed in this chapter. Chadrick v. State, 175 Tenn. 680, 137 S.W.2d 284, 1939 Tenn. LEXIS 92 (1940).

4. Effect on Other Statutes.

Title 57, ch. 3 does not work a repeal by implication of the provisions of the Code prohibiting the reception, possession and transportation of intoxicating liquors. Akers v. State, 175 Tenn. 674, 137 S.W.2d 281, 1939 Tenn. LEXIS 91 (1940).

5. Relation to Interstate Commerce.

Under the decisions of the federal courts alcoholic beverages retain their interstate commerce character until they actually enter the forbidden state, and if the statutes should be construed so as to prohibit such transportation, they would be void because violative of the commerce clause of U.S. Const., art. 1, § 8, cl. 3. McCanless v. Graham, 177 Tenn. 57, 146 S.W.2d 137, 1940 Tenn. LEXIS 11 (1941).

Where the only act engaged in by defendant which can in any wise be related to these statutes is that of transporting intoxicating liquors from outside the state through dry counties of Tennessee to Mississippi in violation of its statutes, such liquor is not contraband within the meaning of title 57, ch. 3, since those acts are limited to the “manufacture, sale, receipt, possession, storage, transportation and distribution of, and traffic in, alcoholic beverages, in counties and municipalities of this state,” as the purpose of the legislature was to make it unlawful to commit such acts in Tennessee, and not to regulate the liquor traffic in other states. McCanless v. Graham, 177 Tenn. 57, 146 S.W.2d 137, 1940 Tenn. LEXIS 11 (1941).

6. Definitions.

7. —Retailer.

Under the definition of a retailer in this section any person who sells whiskey at retail must be regarded as falling within that description regardless of whether he makes one sale or many sales. Hill v. State, 176 Tenn. 475, 144 S.W.2d 734, 1940 Tenn. LEXIS 89 (1940).

8. —Consideration in Revocation of Licenses.

In considering whether terms of licenses had been violated by retailers commissioner could properly consider definitions of “retail sale,” “sale at retail,” “retailer,” “wholesale sale” and “sale at wholesale” as contained in this section and had the discretionary authority to revoke such licenses if he found the holders to be doing a wholesale business. Little v. MacFarland, 206 Tenn. 665, 337 S.W.2d 233, 1960 Tenn. LEXIS 416 (1960).

9. —Alcoholic Beverage.

On appeal, beverage admitted into evidence and examined by jury would be presumed to be capable of being consumed by a human being. State v. Bush, 626 S.W.2d 470, 1981 Tenn. Crim. App. LEXIS 394 (Tenn. Crim. App. 1981).

10. —Municipality.

Only the urban services district, and not the entirety of Davidson County, is a municipality within the definition of T.C.A. §57-3-101. Templeton v. Metropolitan Government of Nashville & Davidson County, 650 S.W.2d 743, 1983 Tenn. App. LEXIS 699 (Tenn. Ct. App. 1983).

57-3-102. Traffic in intoxicating liquor permitted by local option.

  1. It is lawful to manufacture, store, sell, distribute and purchase alcoholic beverages or wine subject to proper licensing, payment of taxes, compliance with the limitation, regulations and conditions provided in this chapter, in counties or municipalities of this state that by local option elections so permit as provided in this chapter.
  2. It shall be lawful for an individual to transport up to five gallons (5 gals.) of alcoholic beverages or wine for personal or household use of the individual in counties or municipalities that have not permitted the sale of alcoholic beverages or wine by local option elections as provided in this chapter and amounts in excess of five gallons (5 gals.) if accompanied by a receipt or other documentation demonstrating legal purchase or transport from an entity licensed under § 57-3-203, § 57-3-204, § 57-3-207 or § 57-3-218.

Acts 1939, ch. 49, § 1; C. Supp. 1950, § 6648.5 (Williams, § 6648.4); T.C.A. (orig. ed.), § 57-107; Acts 2009, ch. 434, § 3; 2011, ch. 451, § 4.

Textbooks. Tennessee Jurisprudence, 16 Tenn. Juris., Intoxicating Liquors, §§ 4, 14, 15.

NOTES TO DECISIONS

1. Burden to Show Legal Possession Under Statute.

The burden is on a defendant indicted under the “bone dry law” to show that the possession was legal under the local option law. Renfro v. State, 176 Tenn. 638, 144 S.W.2d 793, 1940 Tenn. LEXIS 112 (1940).

2. Declaratory Judgment.

Suit to establish town as municipality with power to license liquor stores is proper case for declaratory judgment. Crabtree v. Stephens, 198 Tenn. 149, 278 S.W.2d 672, 1955 Tenn. LEXIS 355 (1955).

57-3-103. Construction of chapter.

    1. Nothing in this chapter shall affect chapter 2 of this title.
    2. Alcoholic beverages lawfully manufactured pursuant to chapter 2 of this title may be lawfully sold in Tennessee by a manufacturer to a wholesaler duly licensed, in those counties or municipalities which favor local option after election duly held and carried as hereinafter provided for. Any manufacturer now operating pursuant to chapter 2 of this title may continue to do so without being affected in any way by this chapter, except as otherwise expressly provided herein.
  1. Except as specifically permitted in §§ 57-3-207, 57-3-402 and 57-3-403, no person may store any alcoholic beverages, unless the person holds a license under § 57-3-203, § 57-3-204, § 57-3-218 or § 57-4-101, or is employed by the licensee, unless the alcoholic beverage is intended for that person's personal or social use.
  2. It is the intent of the general assembly to be certain that any product containing or manufactured with distilled alcohol should be distributed only in those jurisdictions authorizing the sale of alcoholic beverages, and such distribution be subject to the rules and regulations of the commission.

Acts 1939, ch. 49, § 2; C. Supp. 1950, § 6648.6 (Williams, § 6648.5); T.C.A. (orig. ed.), § 57-108; Acts 1983, ch. 229, § 5; 1986, ch. 516, §§ 2, 3; 2006, ch. 955, § 1; 2011, ch. 451, § 5; 2014, ch. 554, § 20.

Code Commission Notes.

Acts 2014, ch. 861, § 4 purported to amend subdivision (a)(1). Subdivision (a)(1) was previously rewritten by Acts 2014, ch. 554, § 20; therefore the amendment by Acts 2014, ch. 861, § 4 was not given effect by authority of the code commission.

Attorney General Opinions. Applicability to foodstuff products, OAG 90-31, 1990 Tenn. AG LEXIS 38 (3/7/90).

Hard cider, OAG 94-75, 1994 Tenn. AG LEXIS 78 (7/8/94).

57-3-104. Enforcement and administration by commission — Licensing procedures.

  1. The commission shall have the authority, by and with the consent of the governor, to employ such attorneys, inspectors, agents, officers and clerical assistance as may be necessary for the effective administration and enforcement of this chapter. The compensation of such personnel shall be approved by the governor.
  2. The commission shall enforce and administer this chapter and the rules and regulations made by it.
  3. The commission shall have and exercise the following functions, duties and powers:
    1. Issue all licenses in respect to, or for the manufacture, importation, bottling, keeping, giving away, furnishing, possession, transportation, sale, and delivery of alcoholic beverages, and to revoke any license whatsoever, the issuance of which is authorized by this chapter;
      1. Any revocation of any license shall be made by the commission only on account of the violation of, or refusal to comply with, any of the provisions of this chapter or any rule or regulation of the commission, after not less than ten (10) days' notice to the holder of the license proposed to be revoked, informing such licensee of the time and place of the hearing to be held in respect thereto, and all further procedure with reference to the revocation of any license shall be fixed and prescribed in the rules and regulations adopted and promulgated by the commission, which may be repealed or amended from time to time;
      2. No person has a property right in any license issued hereunder, nor shall the license itself, or the enjoyment thereof, be considered a property right;
      3. The commission shall hold a hearing to determine whether such license shall be revoked, which hearing shall be held with the same notice and in the same manner as all other hearings provided for under this chapter, whenever:
        1. Any county mayor, if a license has been issued outside the corporate limits of the municipality and outside a civil district meeting the requirements set out in § 57-3-205;
        2. A majority of a three-member commission which has been set up as provided in § 57-3-108, if a license has been issued within a civil district meeting the requirements set out in § 57-3-205; or
        3. The mayor or majority of the commission, city council or legislative council of a municipality within which a license has been issued

        certifies that any licensee has habitually violated this chapter, or any regulation adopted by the county legislative bodies, three-member commissions, or legislative councils, relative to the conduct and operation of the business provided for in this chapter;

    2. Refuse to issue a license or permit if, upon investigation, the commission finds that the applicant for a license or permit has concealed or misrepresented in writing or otherwise any material fact or circumstance concerning the operation of the business or employment, or if the interest of the applicant in the operation of the business or employment is not truly stated in the application, or in case of any fraud or false swearing by the applicant touching any matter relating to the operation of the business or employment. If a license or permit has been issued, the commission shall issue a citation to the licensee or permittee to show cause why the license or permit should not be suspended or revoked. All data, written statements, affidavits, evidence or other documents submitted in support of an application are a part of the application;
    3. Summon any applicant for a license or permit and also to summon and examine witnesses, and to administer oaths to such applicants and witnesses in making any investigation in regard thereto;
    4. Make, promulgate, alter, amend, or repeal rules and regulations for the enforcement of this chapter or the collections of all license fees and taxes, and all penalties and forfeitures relating thereto, except that the alcoholic beverage tax authorized to be collected by §§ 57-3-302 and 57-3-303 shall be collected by the commissioner of revenue;
    5. Prescribe all forms of application and licenses and tax stamps, and of all reports and all other papers and documents required to be used under or in the enforcement of this chapter, except that the alcoholic beverage tax authorized to be collected by §§ 57-3-302 and 57-3-303 shall be collected by the commissioner of revenue;
    6. Prevent parts of the premises connected with or in any sense used in connection with the premises, whereon the possession, transportation, delivery, receipt, sale or purchase of alcoholic beverages may be lawful, from being used as a subterfuge, or means of evading the provisions of this chapter or the rules and regulations of the commission;
    7. Conform to, adopt, or coordinate, to the extent that the commission may deem proper, the practices, methods, standards, rules, and regulations governing traffic in alcoholic beverages, and in alcohol, with the rules, practices, standards, and regulations established by the government of the United States, or any officer, bureau or agency thereof;
    8. Require, on licensed premises, the destruction or removal of any and all bottles, whether empty or otherwise, cases, containers, apparatus, or devices, used or likely to be used, designed or intended or employed in evading, violating or preventing the enforcement of this chapter or the rules and regulations of the commission;
    9. Regulate the advertising, signs and displays, posters or designs intended to advertise any alcoholic beverage or the place where the same is sold; and
    10. Refuse to issue or renew a license or permit, or issue a citation in an amount not to exceed one hundred dollars ($100) per violation if, upon investigation, the commission finds that the applicant for a license or permit has not demonstrated the financial capacity to operate the business in a manner consistent with the regulations of the commission or is not generally paying its debts as they come due except for debts as to which there is a bona fide dispute.

Acts 1939, ch. 49, § 4; 1945, ch. 167, § 1; 1947, ch. 73, § 2; 1949, ch. 284, § 2; C. Supp. 1950, § 6648.7; Acts 1951, ch. 52, § 1; impl. am. Acts 1963, ch. 257, §§ 11, 33; impl. am. Acts 1978, ch. 934, §§ 7, 16, 36; T.C.A. (orig. ed.), § 57-109; Acts 1981, ch. 474, § 2; 2003, ch. 90, § 2; 2014, ch. 1015, § 6; 2017, ch. 147, § 2.

Compiler's Notes. Acts 2003, ch. 90, § 2 directed the code commission to change all references from “county executive” to “county mayor” and to include all such changes in supplements and replacement volumes for the Tennessee Code Annotated.

Textbooks. Tennessee Jurisprudence, 16 Tenn. Juris., Intoxicating Liquors, §§ 3, 4, 6-9, 15, 28.

Law Reviews.

Delegation of Powers to Administrative Agencies in Tennessee (Philip P. Durand), 27 Tenn. L. Rev. 569.

Attorney General Opinions. The Alcoholic Beverage Commission (ABC) has the power, by necessary implication, to require distillers of alcoholic beverages to report the names of the current corporate shareholders and officers on a form designated by the ABC.  For purposes of reporting to the ABC a change in the stock ownership of a corporation that operates a distillery, there is no provision of law that expressly establishes a threshold percentage change of interest that must be met before the change is required to be reported. Likewise, no provision of current state law exempts any type of distillery from reporting the names of corporate shareholders and officers to the ABC. OAG 18-03, 2018 Tenn. AG LEXIS 3 (1/31/2018).

NOTES TO DECISIONS

1. Exercise of Powers by Alcoholic Beverage Commission.

The exercise by the commission of powers under this section will not be lightly interfered with by the courts. McCanless v. Klein, 182 Tenn. 631, 188 S.W.2d 745, 1945 Tenn. LEXIS 262 (1945); Terry v. Evans, 189 Tenn. 345, 225 S.W.2d 255, 1949 Tenn. LEXIS 436 (1949).

Liquor store in municipality without police power to enact or enforce penal ordinances is still subject to state laws including license revocation by commission for violation of rules. Crabtree v. Stephens, 198 Tenn. 149, 278 S.W.2d 672, 1955 Tenn. LEXIS 355 (1955).

2. Rules and Regulations.

It is difficult to conceive of a regulation of the sale and distribution of intoxicating liquor which could be construed to be beyond the police powers of the state. McCanless v. Klein, 182 Tenn. 631, 188 S.W.2d 745, 1945 Tenn. LEXIS 262 (1945); Terry v. Evans, 189 Tenn. 345, 225 S.W.2d 255, 1949 Tenn. LEXIS 436 (1949).

The commission is not authorized to promulgate and enforce regulations which are unreasonable, oppressive or discriminatory. Wise v. McCanless, 183 Tenn. 107, 191 S.W.2d 169, 1945 Tenn. LEXIS 278 (1945).

It is the official duty of the commission to make and promulgate regulations with reference to the retail sale of intoxicating liquors. State ex rel. Brown v. McCanless, 184 Tenn. 83, 195 S.W.2d 619, 1946 Tenn. LEXIS 263 (1946).

The power of the commission under this section to make reasonable rules regulating the issuance of licenses for the retail sale of intoxicating liquors will not be interfered with unless it clearly appears that it has acted arbitrarily or illegally. State ex rel. Brown v. McCanless, 184 Tenn. 83, 195 S.W.2d 619, 1946 Tenn. LEXIS 263 (1946).

3. —Licensing Relatives of Licensee Whose License Is Revoked.

Rule that “no license will be issued to any employee or other person having any interest in the place of business where a license has been revoked, nor will a license be issued to a relative of any employee or other person having any interest in the business for the privilege of doing business near the location of the establishment whose license was revoked,” is not too unreasonable to be sustained and is not unenforceable because of the prohibition of the relative doing business “near” the location of the closed establishment. McCanless v. State, 181 Tenn. 308, 181 S.W.2d 154, 1944 Tenn. LEXIS 375, 153 A.L.R. 832 (1944).

4. —Prohibition of License near Schools or Other Institutions.

Regulation forbidding issuance of license where premises occupied by licensee would be in too close proximity to “church, school, or public institution” is reasonable. State ex rel. Brown v. McCanless, 184 Tenn. 83, 195 S.W.2d 619, 1946 Tenn. LEXIS 263 (1946).

Where regulation of commission prohibited issuance of license if premises involved were in too close proximity to a school, the refusal of commission to issue license to liquor store operated within 700 feet of college campus was not arbitrary or unreasonable and was not affected by city ordinance forbidding maintenance of a liquor store within 600 feet of a college campus. State ex rel. Brown v. McCanless, 184 Tenn. 83, 195 S.W.2d 619, 1946 Tenn. LEXIS 263 (1946).

5. —Rule for Approval of Additions to Stock.

A rule that “no wholesale liquor distributor shall add an additional brand to his stock without first securing the written approval of the commission” is valid and does not tend to create a monopoly. McCanless v. Klein, 182 Tenn. 631, 188 S.W.2d 745, 1945 Tenn. LEXIS 262 (1945).

6. —Rule to Prevent Illegal Diversion.

A rule regulating the transportation of whiskey within the state's borders to the end that it may not be diverted and sold in violation of the state statute is a reasonable exercise of administrative authority by the commission. McQueen v. McCanless, 182 Tenn. 453, 187 S.W.2d 630, 1945 Tenn. LEXIS 241 (1945).

7. —Transportation Regulations.

Rule of commission requiring bond and description of cargo before any person can transport alcoholic beverages within, into, through, or from the state of Tennessee issued pursuant to subdivision (c)(2) was a reasonable rule required for proper administration and enforcement of this chapter. McQueen v. McCanless, 182 Tenn. 453, 187 S.W.2d 630, 1945 Tenn. LEXIS 241 (1945).

8. —Conflict Between Municipal and State Regulations.

If there is a conflict between the municipal and state regulations, that impose by the latter will prevail, since by this section the final authority to license the sale of intoxicating liquor is in the commission. State ex rel. Brown v. McCanless, 184 Tenn. 83, 195 S.W.2d 619, 1946 Tenn. LEXIS 263 (1946).

9. Issuance of Licenses.

The licensing authorities are vested with a large discretion in issuing licenses and their decisions will not be interfered with unless it clearly appears that they have acted arbitrarily or unreasonably. State ex rel. Nixon v. McCanless, 176 Tenn. 352, 141 S.W.2d 885, 1939 Tenn. LEXIS 125 (1940).

The refusal of the commission to grant licenses to the wives of men whose licenses had been revoked where it appeared that wives knew nothing about the liquor business and that the business would be dominated by the husbands was not an abuse of discretion. State ex rel. Nixon v. McCanless, 176 Tenn. 352, 141 S.W.2d 885, 1939 Tenn. LEXIS 125 (1940).

Commission is authorized to make reasonable rules regulating retail sales of intoxicating liquor and is vested with a large discretion in determining whether a license applied for shall be issued. State ex rel. Brown v. McCanless, 184 Tenn. 83, 195 S.W.2d 619, 1946 Tenn. LEXIS 263 (1946).

An incorporated town of over 1,000, is a municipality under this section with power to license operation of liquor store in its boundaries, even though it does not have police power to enact or enforce penal ordinances. Crabtree v. Stephens, 198 Tenn. 149, 278 S.W.2d 672, 1955 Tenn. LEXIS 355 (1955).

The alcoholic beverage commission could grant a liquor license although the city had refused to issue a certificate of good moral character. Chattanooga v. Tennessee Alcoholic Beverage Com., 525 S.W.2d 470, 1975 Tenn. LEXIS 658 (Tenn. 1975).

10. Rights of Permit Holders.

Assuming that he is without fault, the holder of a permit issued by the express authority of a legislative act is the holder of a lawfully conferred privilege in the exercise of which he is entitled to protection for the period of his permit. Wise v. McCanless, 183 Tenn. 107, 191 S.W.2d 169, 1945 Tenn. LEXIS 278 (1945).

The right of a duly licensed dealer to protest an unreasonable, oppressive or discriminatory regulation does not rest on a fundamental property right, but on a privilege expressly conferred by the state, acting through the legislature, and the permission thus given for a fixed term may not be so unreasonably regulated, in the exercise by the commission of the powers delegated to it, as to destroy this permit altogether. Wise v. McCanless, 183 Tenn. 107, 191 S.W.2d 169, 1945 Tenn. LEXIS 278 (1945).

Although under this section a dealer has no “property right” in his license, such civil right as he does have under the permit issued to him by the express authority of the statute may be protected against invasion by the operation of a regulation unreasonable and oppressive in its application to him. Wise v. McCanless, 183 Tenn. 107, 191 S.W.2d 169, 1945 Tenn. LEXIS 278 (1945).

Where after issuance of license to complainant commission promulgated a regulation prohibiting operation of a liquor store within 100 feet of any place where the public was admitted and liquor consumed, complainant whose liquor store was within 100 feet of such a place and who had no control over such place was entitled to enjoin enforcement of such regulation during the period for which his license was issued. Wise v. McCanless, 183 Tenn. 107, 191 S.W.2d 169, 1945 Tenn. LEXIS 278 (1945).

11. Revocation of Licenses.

Failure of wholesaler to reveal interest in retail liquor business was ground for revocation of license. Bluff City Beverage Co. v. MacFarland, 208 Tenn. 340, 345 S.W.2d 896, 1961 Tenn. LEXIS 292 (1961).

57-3-105. Conflicts of interest prohibited.

No member of the commission and no person employed by the commission shall have any interest, direct or indirect, either proprietary or by means of any loan, mortgage or lien, or in any other manner, in or on any premises where alcoholic beverages are sold; nor shall they or any of them have any interest, direct or indirect, in any business wholly or partially devoted to the sale, transportation or storage of alcoholic beverages.

Acts 1939, ch. 49, § 5; C. Supp. 1950, § 6648.16 (Williams, § 6648.8); impl. am. Acts 1963, ch. 257, § 15; T.C.A. (orig. ed.), § 57-110.

57-3-106. Local option election — Municipalities where applicable — Supplemental voter registration — Restrictions on frequency of elections.

    1. Except as provided in subsection (g), the voters of any county may, by local option election, permit the manufacture, receipt, sale, storage, transportation, distribution and possession of alcoholic beverages, within the territorial limits of such county, by a majority vote, at an election held as hereinafter provided, and, in the event of such permission, the manufacture, receipt, sale, storage, transportation, distribution and possession of alcoholic beverages in such county are lawful; provided, that sales at retail as herein defined shall be made only in the municipalities in such county as herein defined, or within a civil district of such county, which district shall have a population of thirty thousand (30,000) persons or over, according to the federal census for the year 1950 or any subsequent census, but which civil district shall not have lying either wholly or partly within its boundaries a municipality as herein defined.
    2. In like manner, the voters of any county, at any time while this chapter is in effect, may, by local option election, forbid the manufacture, receipt, sale, storage, transportation, distribution and/or possession of alcoholic or intoxicating beverages, within the territorial limits of such county, by a majority vote, at an election to be held as hereinafter provided, and, in the event of such prohibition, the manufacture, receipt, sale, storage, transportation, distribution and/or possession of alcoholic or intoxicating beverages in such county is unlawful; provided, that this does not apply to a bona fide manufacturer, actually engaged in manufacture under this chapter.
    1. Except in counties having populations of:

      not less than  nor more than

      12,100 12,200

      23,500 24,000

      65,000 70,000

      according to the 1970 federal census or any subsequent federal census, the voters of any municipality in this state which has been incorporated under a general or special law or laws of this state for five (5) years or longer and which has a population of nine hundred twenty-five (925) or more persons, according to the federal census of 1970 or any subsequent federal census, except in municipalities with a population of not less than one thousand two hundred thirty (1,230) nor more than one thousand two hundred fifty (1,250), according to the 1970 federal census or any subsequent federal census, in any county having a population of not less than thirteen thousand five hundred (13,500) nor more than thirteen thousand six hundred (13,600), according to the 1970 federal census or any subsequent federal census, may, by local option election, permit the manufacture, receipt, sale, storage, transportation, distribution and/or possession of alcoholic beverages within the territorial limits of such municipality by a majority vote, at an election held as hereinafter provided, and in the event of such permission, the manufacture, receipt, sale, storage, transportation, distribution and/or possession of alcoholic beverages in such municipality shall be, and become lawful, notwithstanding the fact that the county or any portion thereof in which such municipality is located has, or has not, voted to the contrary under any other provision of this chapter, and the same shall continue to be lawful until the same is forbidden by the voters of such municipality, by majority vote thereof, at a local option election held as hereinafter provided.

    2. In like manner, the voters of any such municipality, at any time while this chapter is in effect, may, by local option election, forbid the manufacture, receipt, sale, storage, transportation, distribution, and/or possession of alcoholic or intoxicating beverages, within the territorial limits of the municipality, by a majority vote, at an election to be held as hereinafter provided, and in the event of such prohibition, the manufacture, receipt, sale, storage, transportation, distribution, and/or possession of alcoholic or intoxicating beverages in the municipality is unlawful, notwithstanding the fact that the county or any portion thereof in which the municipality is located has or has not voted to the contrary under any other provision of this chapter; provided, that this does not apply to a bona fide manufacturer, actually engaged in manufacture under any law of this state.
    1. Elections provided for in subsections (a) and (b) shall be called and held as elections on questions by the county election commission at the next regular election of the county or municipality, as the case may be, upon receipt of a petition signed by residents of the county or municipality, as the case may be, to a number amounting to ten percent (10%) or more of the votes cast in the county or municipality, as the case may be, for governor of the state of Tennessee at the then last preceding gubernatorial election, requesting the holding of such election. Except that, no election under this chapter may be placed on the same ballot or conducted on the same day of a primary election.
    2. Such petition shall be addressed to the county election commission of such county, or county in which such municipality is located, and shall read, except for such address, substantially as follows:

      We, registered voters of  (here insert name of county or municipality, as the case may be), do hereby request the holding of a local option election to authorize retail package stores to sell alcoholic beverages as provided by law.

    3. Such petition may be in two (2) or more counterparts.
  1. Registered voters of the county or municipality, as the case may be, may vote in the election. Ballots shall be in the form prescribed by the general election laws of the state, except as herein otherwise provided.
    1. The questions submitted to the voters appearing thereon in county elections shall be in the following form:

      To permit retail package stores to sell alcoholic beverages in  (Here insert name of county)

      Not to permit retail package stores to sell alcoholic beverages in   (Here insert name of county)

    2. The questions submitted to the voters appearing thereon in municipal elections shall be in the following form:

      To permit retail package stores to sell alcoholic beverages in  (Here insert name of municipality)

      Not to permit retail package stores to sell alcoholic beverages in   (Here insert name of municipality)

  2. In county elections, the county election commission shall hold a prior supplemental registration, unless such election be at the time of a general election, such registration to be held at the time and in the manner prescribed by law for the holding of supplemental registration previous to the election for members of the general assembly.
    1. The county election commission shall certify the results of the election to the county mayor in county elections and to the mayor of the municipality in municipal elections.
    2. Not more than one (1) election in any such county or municipality shall be held under this chapter within any period of twenty-four (24) months, except that no election in an entire county or any portion thereof in which such municipality is located, held under this chapter, is an election held in such municipality within the meaning of this subdivision (f)(2).
    3. Should any county or municipality thereof conduct a local option election under this chapter in conjunction with any general election, and the number of qualified votes cast negative to the local option proposition exceeds sixty percent (60%) of the total number of votes cast in the election, no further local option election in such county or municipality shall be held for a period of four (4) years from the date of such previous election. However, no election in an entire county or any portion thereof in which such municipality is located, held under this chapter, is an election held in such municipality within the meaning of this provision.
    1. In those counties wherein are located municipalities which have a population equal to or greater than the smallest county in Tennessee by the federal census of 1960 or by any succeeding federal census, or any municipality having a population of one thousand seven hundred (1,700) or more persons, according to the 1960 federal census in which at least fifty percent (50%) of assessed valuation of the real estate in the municipality consists of hotels, motels, and tourist courts and accommodations, as shown by the tax assessment rolls or books of the municipality, the elections provided for in subsection (a) apply only to those portions of such county lying outside the corporate limits of such municipalities, it being the purpose and intent of this chapter that as to such counties no countywide election may be held in, nor shall its result affect, any such municipality, but whether or not the manufacture, receipt, sale, storage, distribution, transportation and/or possession of alcoholic beverages shall be permitted or prohibited within the corporate limits of such municipalities shall be determined solely by separate local option elections held in each municipality as provided by subsection (b) hereof; provided, that in such counties wherein the manufacture, storage, sale, distribution, transportation, and/or possession of alcoholic beverages was legal on May 10, 1967, nothing herein shall affect the legality thereof in such counties and the municipalities thereof until the same shall be prohibited by separate local option elections held as provided in this section.
    2. Elections may be called and held in such portions of such counties lying outside such municipalities in the same manner as is provided by subsection (a) for an entire county and with like effect, except that the results thereof shall be applicable only to those portions of such counties lying without the corporate limits of such municipalities. Petitioners for such elections and the voters participating therein shall reside within those portions of the county lying outside the corporate limits of such municipalities and shall be otherwise qualified as provided in this section. Where a majority of the voters participating in such election shall permit the manufacture, receipt, sale, storage, distribution, transportation and/or possession of alcoholic beverages within such portions of such counties, the same shall be and become lawful therein, but sales at retail shall be made only in such portions of such counties as are within the corporate limits of municipalities as the same are defined in § 57-3-101, except this subsection (g) shall likewise apply to any civil district which falls within subsection (a) and § 57-3-205.
    3. Not more than one (1) such election shall be held in such portions of any county lying without the corporate limits of such municipalities within any period of twenty-four (24) months.
    4. Should any portion of any county lying without the corporate limits of such municipalities conduct a local option election under the provisions of this chapter in conjunction with any general election, and the number of qualified votes cast negative to the local option proposition exceeds sixty percent (60%) of the total number of votes cast in the election, no further local option election in such portions of any county lying without the corporate limits of such municipalities shall be held for a period of four (4) years from the date of such previous election. However, no election in any such portion of a county, held under this chapter, is an election held in such municipalities within the meaning of this subdivision (g)(4).
  3. When a municipality is located partly within a county that has a metropolitan form of government and the county has authorized retail package stores to sell alcoholic beverages and partly within another county that has not authorized retail package stores to sell alcoholic beverages, a referendum in the municipality shall be held only in that portion of the municipality located in the county that has not authorized retail package stores to sell alcoholic beverages. The referendum result shall not affect the sale of alcoholic beverages by retail package stores in the portion of the municipality located in the county having a metropolitan form of government.
  4. If any municipality located in any county having a population of not less than twenty-nine thousand four hundred (29,400) nor more than twenty-nine thousand five hundred (29,500), according to the 2010 federal census or any subsequent federal census, has authorized the sale of alcoholic beverages for consumption on the premises in a referendum in the manner prescribed by this section, then any municipality having a population of not less than five hundred thirty (530) nor more than five hundred thirty-nine (539), according to the 2010 federal census or any subsequent federal census, located within the boundaries of such county, may conduct a referendum to authorize the sale of alcoholic beverages at retail within the corporate boundaries of such municipality, notwithstanding the population requirements of § 57-3-101(a)(14) or subdivision (b)(1). The referendum shall be conducted in the manner prescribed by this section.
  5. If any municipality located in any county having a population of not less than forty-one thousand eight hundred (41,800) nor more than forty-one thousand nine hundred (41,900), according to the 2010 federal census or any subsequent federal census, has authorized the sale of alcoholic beverages for consumption on the premises in a referendum in the manner prescribed by this section, then any municipality having a population of not less than four hundred sixty (460) nor more than four hundred seventy (470), according to the 2010 federal census or any subsequent federal census, located within the boundaries of such county, may conduct a referendum to authorize the sale of alcoholic beverages at retail within the corporate boundaries of such municipality, notwithstanding the population requirements of § 57-3-101(a)(14) or subdivision (b)(1). The referendum must be conducted in the manner prescribed by this section.
  6. If any municipality located in any county having a population of not less than sixty-six thousand two hundred (66,200) nor more than sixty-six thousand three hundred (66,300), according to the 2010 federal census or any subsequent federal census, has authorized the sale of alcoholic beverages for consumption on the premises in a referendum in the manner prescribed by this section, then any municipality having a population of not less than three hundred ten (310) nor more than three hundred nineteen (319), according to the 2010 federal census or any subsequent federal census, located within the boundaries of such county, may conduct a referendum to authorize the sale of alcoholic beverages at retail within the corporate boundaries of such municipality, notwithstanding the population requirements of § 57-3-101(a)(14) or subdivision (b)(1). The referendum must be conducted in the manner prescribed by this section.
    1. Notwithstanding subsection (a), in any county that has approved the sale at retail of alcoholic beverages, retail sales may be made within the boundaries of any property under the control of a property owners association that:
      1. Includes at least four thousand (4,000) homes;
      2. Contains three (3) golf courses, a country club, and a yacht club;
      3. Is managed by a 501(c) nonprofit corporation;
      4. Has more than one hundred (100) miles of roads maintained by the property owners association;
      5. Has a volunteer fire department;
      6. Has more than one hundred (100) people employed by the property owners association;
      7. Has a utility system maintained by the property owners association;
      8. Is located on the banks of Tellico Reservoir; and
      9. Is located in any county having a population not less than forty-eight thousand five hundred (48,500) and not more than forty-eight thousand six hundred (48,600), according to the 2010 federal census or any subsequent federal census.
    2. Notwithstanding any other law to the contrary, the commission may issue a retailer's license to any 501(c) nonprofit corporation described in subdivision (l )(1)(C) if such nonprofit corporation approves having a retail licensee within the boundaries of its property upon a majority vote of the board for such nonprofit corporation.

Acts 1939, ch. 49, § 16; C. Supp. 1950, § 6648.8 (Williams, § 6648.19); Acts 1951, ch. 52, § 6; impl. am. Acts 1951, ch. 75, § 1; impl. am. Acts 1953, ch. 88, § 1; Acts 1963, ch. 390, § 1; 1967, ch. 215, § 1; 1971, ch. 70, § 8; 1972, ch. 502, § 1; 1972, ch. 612, § 8; 1972, ch. 640, § 1; 1972, ch. 740, § 4; impl. am. Acts 1972, ch. 740, § 7; Acts 1975, ch. 112, §§ 1, 2; 1975, ch. 358, § 1; 1977, ch. 174, §§ 1, 2; 1978, ch. 627, § 1; impl. am. Acts 1978, ch. 934, §§ 21, 36; T.C.A. (orig. ed.), § 57-111; Acts 1981, ch. 381, §§ 1-3; 1982, ch. 551, §§ 1-5; 1992, ch. 711, § 2; 2003, ch. 90, § 2; 2011, ch. 116, § 1; 2015, ch. 201, § 1; 2018, ch. 692, § 1; 2018, ch. 891, § 1; 2018, ch. 1027, § 2.

Compiler's Notes. For tables of population of Tennessee municipalities, and for U.S. decennial populations of Tennessee counties, see Volume 13. and its supplement.

Acts 2003, ch. 90, § 2 directed the code commission to change all references from “county executive” to “county mayor” and to include all such changes in supplements and replacement volumes for the Tennessee Code Annotated.

Amendments. The 2018 amendment by ch. 692 added (j).

The 2018 amendment by ch. 891 added (k).

The 2018 amendment by ch. 1027 added (l ).

Effective Dates. Acts 2018, ch. 692 § 3. April 9, 2018.

Acts 2018, ch. 891, § 3. May 3, 2018.

Acts 2018, ch. 1027, § 3. May 21, 2018.

Textbooks. Tennessee Jurisprudence, 16 Tenn. Juris., Intoxicating Liquors, §§ 6, 28.

Attorney General Opinions. Because a county previously approved liquor-by-the-drink sales through a county-wide referendum, this referendum made such sales legal within a city meeting the definition of a municipality under T.C.A. §57-3-101; further, the exclusion of certain municipalities from the effects of a county-wide referendum as described in T.C.A. §57-3-106(g)(1) did not apply to the city because its population is, and always has been, smaller than the least populous county according to the 1960 and subsequent censuses, OAG 02-092 (8/28/02).

Even though sales of liquor by the drink were legal in a city, as a result of a previous county referendum, the voters of the city could, through a referendum, prohibit such sales, OAG 02-092 (8/28/02).

Participation of the municipality as a whole is required in a referendum to approve liquor by the drink, OAG 06-113 (7/19/06).

Consumption of alcoholic beverages on the premises in unincorporated areas of a county, OAG 09-011 (2/3/09).

Constitutionality of rule limiting advertising of alcoholic beverages.  OAG 13-46, 2013 Tenn. AG LEXIS 46 (6/17/2013).

NOTES TO DECISIONS

1. Decrease in Population Subsequent to Election.

Where the population of a town when liquor license was issued was more than 1,000 at the time it was granted, subsequent decrease of population of the town below 1,000 did not operate to invalidate the license. O'Neil v. State ex rel. Baker, 185 Tenn. 534, 206 S.W.2d 780, 1947 Tenn. LEXIS 354 (1947).

2. Returns of Election Commission.

The returns by the election commission are quasi records, and stand with all force of presumptive regularity and prima facie integrity, not only till suspicion is cast upon them, but until their self-authenticated verity is overcome by affirmative proof that the returns do not speak the truth. Seeber v. Watlington, 192 Tenn. 521, 241 S.W.2d 553, 1951 Tenn. LEXIS 298 (1951).

3. Function of County Mayor.

The county executive (now county mayor), as the recipient of the returns under this section, acts merely in a ministerial capacity as the act which the county executive (now county mayor) performs is done without the exercise of discretion or judgment and it is only to lodge the official returns of the election commission. Seeber v. Watlington, 192 Tenn. 521, 241 S.W.2d 553, 1951 Tenn. LEXIS 298 (1951).

4. Fraudulent Election.

Where complainant contended that his property right in his liquor business was jeopardized by a fraudulent local option election, complainant was entitled to maintain bill in chancery, but injunction restraining election commission from canvassing votes and announcing result of election was improper as being premature. O'Neil v. Jones, 185 Tenn. 539, 206 S.W.2d 782, 1947 Tenn. LEXIS 355, 1 A.L.R.2d 581 (1947).

5. Suit by County Mayor to Reform Election.

County executive (now county mayor) is not entitled to file an action against election commission to reform election returns since he is merely charged with reception of returns and has no authority statutory or otherwise to bring such an action. Seeber v. Watlington, 192 Tenn. 521, 241 S.W.2d 553, 1951 Tenn. LEXIS 298 (1951).

Suit by county mayor against county election commission to reform local option election returns certified to him by election commission on the ground of fraud was not an election contest. Seeber v. Watlington, 192 Tenn. 521, 241 S.W.2d 553, 1951 Tenn. LEXIS 298 (1951).

6. Mandamus Against Election Commission.

Election commission which rejected returns in two precincts for insufficient legal reasons could be mandated to reassemble all returns including the ones rejected. Peeler v. State, 190 Tenn. 615, 231 S.W.2d 321, 1950 Tenn. LEXIS 528 (1950).

7. Municipal Ordinances.

A municipal ordinance prohibiting the sale of and trafficking in alcoholic beverages within the corporate limits was in conflict with the requuirement that the sale of alcoholic beverage be permitted or prohibited on a countywide basis. Lakewood v. Tennessee Alcoholic Beverage Com., 219 Tenn. 510, 410 S.W.2d 897, 1967 Tenn. LEXIS 452 (1967).

An ordinance is unreasonable if it is so restrictive with respect to permissible locations of liquor stores that it conflicts with the legislative purpose that such stores be fairly distributed throughout the city. Chattanooga v. Tennessee Alcoholic Beverage Com., 525 S.W.2d 470, 1975 Tenn. LEXIS 658 (Tenn. 1975).

57-3-107. Counties in which no election held — Counties voting against local option — Effect — Transportation of intoxicating liquors through dry counties.

  1. In the several counties, or portions thereof, and in the several municipalities wherein separate local option election may be held under the provisions hereof, in which no local option election is held, or, if held, a majority of votes cast therein are against local option, then as to that county or portion thereof, or municipality, nothing in this chapter shall be so construed as to modify in any respect the statutes now in force relating to the manufacture, sale, transportation, and/or possession of intoxicating liquors, but the same shall remain in full force and effect.
  2. It shall be lawful to transport alcoholic beverages through such counties in which no local option election is held, or if the election is held and the majority of votes cast therein are against local option, if, in either such case, such beverages are in sealed bottles or containers, and are moving from a duly licensed manufacturer to a licensed wholesaler, or from a wholesaler to a licensed retailer, and such shipment is accompanied by a bill of lading or other instrument in writing showing the destination of such alcoholic beverages.
  3. Whenever any county or municipality wherein traffic in alcoholic beverages has been legalized, shall, by a majority vote in a local option election held as set out herein, prohibit such traffic, all licensed dealers in such county or municipality shall have ninety (90) days from the final determination of the results of the election to dispose of their stocks of alcoholic beverages and wind up their businesses.

Acts 1939, ch. 49, § 17; C. Supp. 1950, § 6648.9 (Williams, § 6648.20); Acts 1951, ch. 138, § 2; 1967, ch. 215, § 2; modified; T.C.A. (orig. ed.), § 57-112.

Textbooks. Tennessee Jurisprudence, 16 Tenn. Juris., Intoxicating Liquors, § 6.

NOTES TO DECISIONS

1. Constitutionality.

This section is not unconstitutional as creating an arbitrary and unreasonable discrimination in favor of, or against, citizens of particular counties of the state. Akers v. State, 175 Tenn. 674, 137 S.W.2d 281, 1939 Tenn. LEXIS 91 (1940).

2. Implied Exceptions.

The courts will not by implication add another exception to those contained in this section since the enumeration of specific exceptions to a general law will be construed to exclude all other exceptions. In re A-1 Liquor Distributors, Inc., 37 Tenn. App. 661, 269 S.W.2d 785, 1953 Tenn. App. LEXIS 119 (Tenn. Ct. App. 1953).

3. Transportation Between Wholesalers.

There is no statutory exception to the general rule that liquor may not be transported in a dry county which would permit one wholesale corporation to send a shipment of liquor through a dry county to another wholesale corporation by way of gift, exchange or sale. In re A-1 Liquor Distributors, Inc., 37 Tenn. App. 661, 269 S.W.2d 785, 1953 Tenn. App. LEXIS 119 (Tenn. Ct. App. 1953).

Although all capital stock of a wholesale liquor company was owned by a second wholesale liquor company, such corporations were separate legal entities and transportation between them through a dry county was illegal. In re A-1 Liquor Distributors, Inc., 37 Tenn. App. 661, 269 S.W.2d 785, 1953 Tenn. App. LEXIS 119 (Tenn. Ct. App. 1953).

57-3-108. District commissions — Members — Appointment — Term of office — Qualifications — Vacancies — Service without compensation.

  1. Whenever any civil district of any county of the state shall by virtue of § 57-3-205 meet the requisites for the licensing of retail liquor stores to be located within such district the secretary of state, state treasurer and comptroller of the treasury, or a majority of them, shall appoint a three-member commission composed of citizens and residents of the civil district involved, which commission shall be vested with all the powers and duties with respect to the sale of alcoholic beverages within such district which may under state law be vested in the mayor and/or board of aldermen of a municipality of the state, including the right to limit the number of such stores and to limit the permissible locations within such district where such stores may be situated.
  2. Members of such commission shall serve until the next biennial election in August occurring more than thirty (30) days after such civil district shall be brought within the requirements of this chapter for the sale of alcoholic beverages at retail, at which time their successors shall be elected.
  3. The qualifications required of a member of such commission shall be the same as those for the magistrates of such district, and the qualifications of those entitled to vote for such commissioners shall be the same as those required for voters for the office of magistrate of such district.
  4. The term of office of all the members of the commission shall be for two (2) years, or until their successors are duly elected and take office. All vacancies on the commission shall be filled by the appointment of the secretary of state, state treasurer and comptroller of the treasury, or a majority of them, and such appointment shall be for the unexpired term of the member whose vacancy is being filled.
  5. The members of the commission shall serve without compensation and shall have no interest, financial or otherwise, in any retail or wholesale liquor store or distillery.
  6. In the event the terms of office of the members of the commission shall have expired, that is, that they shall have served the two (2) years for which they were originally elected, and as many as one (1) biennial election has been held without the voters having an opportunity to elect the members of the commission because no names were printed on the ballot, then the terms of the members of the commission shall be automatically terminated and a new commission shall be designated with all the rights and powers attaching to the commission herein. In such event the members of the commission shall be appointed by a board composed of the secretary of state, state treasurer and comptroller of the treasury in the same case as otherwise provided for filling vacancies.

Acts 1939, ch. 49, § 9a, as added by Acts 1951, ch. 52, § 4 (Williams, § 6648.12a1); 1955, ch. 244, § 1; T.C.A. (orig. ed.), § 57-113.

Textbooks. Tennessee Jurisprudence, 16 Tenn. Juris., Intoxicating Liquors, §§ 6, 8.

NOTES TO DECISIONS

1. General Services District.

Under the express definition of T.C.A. §57-3-205, the general services district standing alone is not a civil district within any category which would entitle it to the appointment of a commission under T.C.A. §57-3-109 to determine whether an individual should be granted a retail liquor license. Templeton v. Metropolitan Government of Nashville & Davidson County, 650 S.W.2d 743, 1983 Tenn. App. LEXIS 699 (Tenn. Ct. App. 1983).

57-3-109. Damaged or unaccepted goods — Liability for tax.

When any common carrier transporting alcoholic beverages to a point within this state, or any insurance company insuring such alcoholic beverages, comes into possession of such alcoholic beverages by virtue of the same being damaged or otherwise unaccepted by the consignee of such alcoholic beverages, such common carrier or insurance company shall become liable for the tax imposed under this chapter, unless proof deemed satisfactory to the commissioner of revenue is furnished to the commissioner by such carrier or insurer showing that such alcoholic beverages have been destroyed or shipped to a point without this state and, therefore, have not been sold or consumed in this state.

Acts 1971, ch. 150, § 1; T.C.A., § 57-169.

57-3-110. Sale of liquors to armed forces agencies.

  1. Any wholesaler, manufacturer, or distiller may sell intoxicating liquors to any post exchange, ship's service store, mess, club, or commissary of any post, camp, station or reservation of the armed forces, or any other agency authorized by the department of defense to engage in the sale of intoxicating liquors.
  2. Before any person shall transport (other than by common carrier) alcoholic beverages within, into, or through this state, for delivery to any such ship's service store, mess, club, commissary, or other agency under the jurisdiction of the department of defense, such person shall comply with § 57-3-403, and any other law applicable to the transporting of alcoholic beverages, and shall, in addition thereto, procure from the alcoholic beverage commission a special permit in such form as may be prescribed by the commission, which application, among other things, shall state the name and location of the post exchange, ship's service store, mess, club, commissary, or other agency to which the delivery will be made, the route over which such shipment will be hauled, and the amount to be transported according to the separate containers making up such shipment.
  3. Before any common carrier shall transport alcoholic beverages within, into or through this state for delivery to a post exchange, ship's service store, mess, commissary, club or other agency under the jurisdiction of the department of defense, notice of such shipment shall be given to the alcoholic beverage commission, which notice shall include, among other things, the name and location of the consignee, the route over which such shipment will be transported, and the amount to be transported according to the separate containers making up such shipment.
  4. It is herein declared to be the legislative intent to permit the sale of alcoholic beverages to post exchanges and similar agencies under the jurisdiction of the department of defense on military or naval reservations and posts within the boundaries of this state by wholesalers, manufacturers, and distilleries only upon strict compliance with this section, § 57-3-403 and all other sections applicable to the transportation of alcoholic beverages within, into, or through this state.

Acts 1955, ch. 347, § 1; impl. am. Acts 1959, ch. 9, § 14; impl. am. Acts 1963, ch. 257, § 49; T.C.A., § 57-151.

57-3-111. Appropriation for enforcement of law.

There is appropriated from state license and permit fees a sum sufficient for the salaries, cost, expenses, operation and enforcement of this chapter, subject to an allotment by the commissioner of finance and administration, with the approval of the governor, but in no event shall the allotment made by the commissioner exceed the amount of fees collected under this chapter.

Acts 1939, ch. 49, § 9b, as added by Acts 1949, ch. 284, § 5; C. Supp. 1950, § 6648.14b (Williams, § 6648.12b); impl. am. Acts 1959, ch. 9, § 3; impl. am. Acts 1961, ch. 97, § 3; T.C.A. (orig. ed.), § 57-149.

57-3-112. Partial invalidity of law — Operation and effect.

If the referendum election provisions of this chapter, or any part thereof, as contained in §57-3-106 or elsewhere, be held unconstitutional, or invalid, void, or ineffective, for any reason, in whole or in part, this chapter must fail as such provisions shall not be severable, and no part of this chapter would have been passed without such provisions being contained therein as valid provisions.

Acts 1939, ch. 49, § 18; C. Supp. 1950, § 6648.23 (Williams, § 6648.21); modified; T.C.A. (orig. ed.), § 57-150.

NOTES TO DECISIONS

1. Effect of Section.

This section, in as many words, makes the referendum election provisions, and all parts thereof, inseparable parts of the statute. Akers v. State, 175 Tenn. 674, 137 S.W.2d 281, 1939 Tenn. LEXIS 91 (1940).

Part 2 Licenses and Fees

57-3-201. License classifications.

The alcoholic beverage commission may issue, under this chapter, the following classes of licenses, in relation to alcoholic spirituous beverages exclusively, which shall consist of the following classes only:

  1. Manufacturer's or distiller's or rectifier's license;
  2. Liquor wholesaler's license;
  3. Liquor retailer's license;
  4. Winery license;
  5. Winery direct shipper's license;
  6. Alcoholic beverage collector's license;
  7. Winemaking on premises facility license;
  8. Farm wine permit; and
  9. Wine at retail food store license.

Acts 1939, ch. 49, § 5; mod. C. Supp. 1950, § 6648.10 (Williams, § 6648.8); modified; impl. am. Acts 1963, ch. 257, § 17; T.C.A. (orig. ed.), § 57-114; Acts 2009, ch. 348, § 2; 2009, ch. 484, § 2; 2011, ch. 451, § 1; 2012, ch. 691, § 2; 2014, ch. 554, § 5; 2019, ch. 263, § 1.

Compiler's Notes. For the Preamble to the act regarding allowing an in-state or out-of-state entity to ship wine directly to consumers age 21 years or older in this state for personal use, please refer to Acts 2009, ch. 348.

Amendments. The 2019 amendment inserted “Winery” at the beginning of (5).

Effective Dates. Acts 2019, ch. 263, § 2. April 30, 2019.

Cross-References. Municipal inspection fees, title 57, ch. 3, part 5.

57-3-202. Manufacturer's or distiller's licenses — Qualifications of applicants — Fees — Permits to solicit orders — Penalty — Rules and regulations.

  1. A manufacturer's or distiller's license may be issued, as hereinafter provided, for the manufacturing of alcoholic spirituous beverages or vintage alcoholic beverages. Any person, firm, or corporation desiring to manufacture for commercial purposes any alcoholic spirituous beverages or vintage alcoholic beverages shall make application to the commission for a license to manufacture the same, which application shall be in writing and verified, on the forms herein authorized, to be prescribed and furnished; and, thereupon, the commission may grant such license, subject to this chapter.
  2. All applicants if individuals must be citizens of the United States, and all stockholders of any corporate licensee must likewise be citizens of the United States.
  3. Such license shall not be issued unless and until there be paid to the commission a separate license fee of one thousand dollars ($1,000).
  4. Before an individual owner, officer, employee, or representative of any manufacturer, rectifier, or importer may solicit orders from a licensed wholesaler in this state, such individual owner, officer, employee, or representative shall be the holder of a permit issued by the commission. The fee for such permit shall be fifty dollars ($50.00). Such permit shall authorize the holder to solicit orders upon the premises of a licensed wholesaler. A representative may sell the products of, or represent more than one (1) manufacturer, rectifier, or importer and such affiliates or subsidiaries that the manufacturer, rectifier, or importer may control by means of ownership or the ownership of a controlling stock interest.
  5. “Vintage alcoholic beverages,” as used in this section, means all wine sold by wholesalers licensed under § 57-3-203.
    1. A manufacturer's license may be issued to a person, firm or corporation for the limited purpose of blending nonalcoholic products with alcoholic beverages on premises, either on its own behalf or on behalf of other entities pursuant to contract.
    2. A licensee under this subsection (f) may obtain the alcoholic beverages for use in its blending operations from any entity holding a license or permit issued under this section, §§ 57-2-104, 57-3-203, and part 6 of this chapter.
    3. A license may be issued to a manufacturer, under this subsection (f), notwithstanding the requirements of § 57-3-106.
    4. A manufacturer, licensed under this subsection (f) for the limited purpose of blending, may sell, distribute or transport the product produced from its blending operations in accordance with this title.
  6. Notwithstanding subsection (f), an establishment licensed to sell alcoholic beverages for on-premises consumption pursuant to chapter 4, part 1 of this title, may, without a manufacturer's license, produce, store and sell infused products pursuant to § 57-4-108.
  7. The commission is empowered to make such regulations, investigations and audits as it may deem necessary for enforcing and preventing violations of this chapter.
    1. A manufacturer's license issued or renewed under this section to a manufacturer shall also allow such manufacturer to sell at retail on the licensed premises of the manufacturer products that are manufactured on the manufacturer's premises; provided, that no more than five gallons (5 gal.) or one-sixth (1/6) of a barrel of its products may be sold to any one (1) individual per visit to the premises. The manufacturer may serve samples of the product manufactured or distilled at the premises to any person of legal drinking age with or without cost or may include such samples as part of a tour of the manufacturer's or distiller's premises available to the public with or without cost. Such samples may be made available at any location on the manufacturing premises permitted by federal law. The manufacturer shall disclose to the commission the location where samples are available. The hours of sale for the manufacturer to sell products at retail shall be between the hours of eight o'clock a.m. (8:00 a.m.) and eleven o'clock p.m (11:00 p.m) on Monday through Saturday and between the hours of ten o'clock a.m. (10:00 a.m.) and eleven o'clock p.m. (11:00 p.m.) on Sunday.
    2. A manufacturer electing to exercise the rights granted to it under subdivision (i)(1), may only sell at retail or provide samples of product that it has obtained from a wholesaler licensed under § 57-3-203, and such wholesaler shall remit all taxes imposed under §§ 57-3-302, 57-3-501 (which shall be collected from the manufacturer based upon its retail sales), and 57-6-201. For products acquired from a wholesaler by a manufacturer under this section, the wholesaler may permit the manufacturer to deliver its products to the location on its premises where such retail sales and samples will be effected, provided the wholesaler permitting such direct shipment must include the amounts delivered in its inventory and depletions for purposes of tax collections.
    3. Notwithstanding any law to the contrary, any manufacturer selling at retail with the license authorized by this subsection (i) shall pay a municipal inspection fee, described in § 57-3-501, if a municipality the manufacturer is located in imposes such inspection fee which shall then be remitted by the wholesaler as described in subdivision (i)(2).
      1. A distiller's license issued or renewed under this section authorizes a distillery to sell to any person of legal drinking age alcoholic beverages for consumption on the premises of the distillery, other than the bonded premises, where such consumption is also permitted by federal law. Distilled spirits sold under this subdivision (i)(4) must be manufactured on the premises of the distillery.
      2. As used in subdivision (i)(4)(A), “premises,” for purposes of consumption on the premises:
        1. Means any and all of the real property owned or leased by a distillery upon which the distillery is operated, including any real property owned by the distillery contiguous thereto; and
        2. Does not mean the bonded premises of a distillery.
    4. Samples served and alcoholic beverages sold for consumption on the premises of a distillery in accordance with this subsection (i) are not subject to the tax imposed by § 57-4-301(c).
      1. Notwithstanding any law to the contrary, and in addition to any rights and abilities already permitted under this subsection (i), a manufacturer electing to exercise the rights granted to it under this subsection (i), may sell alcoholic beverages at retail, sell alcoholic beverages for consumption on the premises, and serve samples of any finished product that is transferred from another site for which a manufacturer's license under this section has been issued to the same licensee, only under the circumstances and conditions as outlined in this subdivision (i)(6).
      2. A manufacturer may sell product transferred between different sites described in one (1) manufacturer's alcohol and tobacco tax and trade bureau (TTB) permit; provided, that:
        1. The site identified as the plant address in the manufacturer's alcohol and tobacco tax and trade bureau (TTB) permit manufactures a minimum of one thousand (1,000) proof gallons at that site annually (prorated for partial years);
        2. Any site receiving transferred product has a minimum of two thousand square feet (2,000 sq. ft.) of bonded premises;
        3. Any site transferring product only transfers product that is manufactured at that site or manufactured at another site for which a manufacturer's license under this section has been issued to the same licensee; and
        4. Any site transferring or receiving transferred product must hold a manufacturer's license issued pursuant to this section.
      3. A manufacturer may sell product transferred between sites described in separate manufacturer's alcohol and tobacco tax and trade bureau (TTB) permits; provided, that:
        1. Any site transferring or receiving transferred product must hold a manufacturer's license issued pursuant to this section. Any site transferring product must have held the manufacturer's license for a minimum of three (3) years;
        2. Any site receiving transferred product shall not receive more transferred product than the equivalent amount of the proof gallons distilled at the receiving site for each calendar year; and
        3. Any site transferring product shall only transfer product that is distilled at that site or distilled at another site for which a manufacturer's license under this section has been issued to the same licensee.
      4. Any manufacturer transferring or receiving product pursuant to this subdivision (i)(6) shall comply with the following requirements:
        1. Provide written notice to the commission regarding the manufacturer's intent to transfer product, which notice shall specify the manufacturer's qualifications to transfer product pursuant to (i)(6)(B) or (i)(6)(C) and identify the address of each licensed premises that will transfer or receive transferred product;
        2. The manufacturer shall comply with subdivision (i)(2) and the distance restrictions in §§  57-2-109 and 57-2-103(d)(6), as applicable;
        3. A manufacturer transferring or receiving product pursuant to subdivision (i)(6)(B) shall maintain sufficient records documenting that the gallonage and transfer requirements of subdivision (i)(6)(B)(i) are being met and, with its annual renewal, shall file a copy of such records along with copies of the manufacturer's TTB Forms 5110.40 and 5110.28 and an affidavit certifying the amount of product manufactured at the site to document that the licensee has complied with the gallonage and transfer requirements; and
        4. A manufacturer transferring or receiving product pursuant to subdivision (i)(6)(C) shall maintain sufficient records documenting that the gallonage and transfer requirements of subdivision (i)(6)(C)(ii) are being met and, with its renewal, shall file a copy of such records along with copies of the manufacturer's TTB Form 5110.40 and an affidavit certifying the amounts of product distilled at the site receiving transferred product and the amount of transferred product the site received to document that the licensee has complied with the gallonage and transfer requirements.
      5. Any records or reports filed in accordance with subdivision (i)(6)(D) are privileged and confidential and are not public records.
      6. Failure to comply with the gallonage and transfer requirements of this subdivision (i)(6) may result in a civil penalty not to exceed ten dollars ($10.00) per gallon of the difference between the required gallonage and that disclosed in the licensee's affidavit filed in accordance with subdivision (i)(6)(D). Failure to comply with the gallonage and transfer requirements more than once within a three-year period may result in suspension or revocation of the manufacturer's license.
    1. Any nonprofit association organized to encourage and support the manufacture of alcoholic beverages with three (3) or more manufacturers licensed under this section or non-manufacturer non-resident sellers licensed under § 57-3-602(c) as members shall be allowed to hold not more than fifteen (15) alcoholic beverage festivals per calendar year. Each festival shall not exceed a period of seventy-two (72) hours.
    2. Any manufacturer licensed under this section or non-manufacturer non-resident seller licensed under § 57-3-602(c) participating in a festival authorized by this subsection (j) shall be allowed to transport, serve and offer complimentary samples of any alcoholic beverage lawfully manufactured by the manufacturer or on behalf of the non-manufacturer non-resident seller pursuant to § 57-3-602(c) for tasting at the festival.
    3. Any manufacturer licensed under this section or non-manufacturer non-resident seller licensed under § 57-3-602(c) participating in a festival authorized by this subsection (j) shall be allowed to transport alcoholic beverages produced by that manufacturer or on behalf of that non-manufacturer non-resident seller to sell at the festival for consumption off-premises.
      1. Any nonprofit association authorized by this subsection (j) to hold an alcoholic beverage festival shall apply for a special occasion license as defined in § 57-4-102, in order for participating manufacturers licensed under this section or non-manufacturer non-resident sellers licensed under § 57-3-602(c) to serve complimentary samples as described in subdivision (j)(2) and to sell alcoholic beverages produced by the manufacturers or on behalf of the non-manufacturer non-resident sellers for consumption off-premises.
      2. Notwithstanding § 57-4-102(33)(A), a special occasion license issued for an alcoholic beverage festival authorized by this subsection (j) shall be for the duration of the festival for which application is made for a period not to exceed seventy-two (72) hours. A special occasion license issued pursuant to this subsection (j) shall only be available upon the payment of the fee as required by law for each separate day of the festival.
      3. A nonprofit association authorized to conduct an alcoholic beverage festival pursuant to this subsection (j) shall be permitted to hold the festival in any municipality or county of the state in the manner provided in subdivision (j)(5).
    4. A nonprofit association, as defined in subdivision (j)(1), is authorized to conduct an alcoholic beverage festival pursuant to this subsection (j) in a municipality or county of this state that has approved the sale of alcoholic beverages or has a licensed manufacturer located in that municipality or county, subject to complying with all permit requirements of the municipality or county, and in all other municipalities or counties upon receiving approval of the legislative body of the municipality or county to hold such festival at a location and in such manner authorized by such legislative body.
      1. Any manufacturer licensed under this section shall be permitted to use items related to or incidental to the tasting of alcoholic beverages manufactured on the premises and such items may be mixed with such alcoholic beverages anywhere on or off the manufacturer's premises where tastings are permitted as well as at private events and events requiring a special occasion license. Such items may include, but are not limited to:
        1. Bitters, whether manufactured on the premises or purchased at retail, used in the preparation or garnishment of alcoholic beverages or mixed alcoholic beverages;
        2. Any and all garnishes and food items used in the preparation or garnishment of alcoholic beverages or mixed alcoholic beverages, including any juices, concentrates, and other ingredients used in the preparation of mixed alcoholic beverages;
        3. Glassware and any other cups, glasses, or other containers normally used for serving drinks;
        4. Ice, water, soft drinks, and any other nonalcoholic beverages; and
        5. Other alcoholic beverages manufactured on the premises.
      2. Tastings under subsection (i) shall be limited to one-half ounce (½ oz.) of alcohol per stock keeping unit (sku) per tasting;
    1. Any manufacturer licensed under this section shall be permitted to rent or lease out any portion of their premises for any event, with or without charge, whether the event is public, private, requires a special occasion license as defined in § 57-4-102, or catered by a caterer licensed pursuant to chapter 4, part 1 of this title. Events cannot be held on the bonded premises or general premises of the manufacturer, as defined in 27 CFR part 19, unless the manufacturer has obtained prior approval from the alcohol and tobacco tax and trade bureau (TTB) for such events pursuant to federal regulations.
    2. Owners, officers, employees, and representatives of any manufacturer licensed under this section shall be permitted to touch, handle, and pour product of such manufacturer at any and all tastings permitted by law, including, but not limited to, consumer education seminars, employee education seminars, retail sales demonstrations, consumer tastings, private events, events requiring a special occasion license as defined in § 57-4-102, and any and all tastings permitted under this chapter, and any rules or regulations promulgated.
    3. In the event of a conflict between any other law in this title and this subsection (k), this subsection (k) shall govern.

Acts 1939, ch. 49, § 6; 1945, ch. 167, § 3; 1949, ch. 284, § 5; C. Supp. 1950, § 6648.11 (Williams, § 6648.9); impl. am. Acts 1963, ch. 257, § 18; Acts 1975, ch. 234, § 1; 1976, ch. 838, § 1; T.C.A. (orig. ed.), § 57-115; Acts 2006, ch. 616, § 1; 2012, ch. 968, § 5; 2013, ch. 445, § 3; 2014, ch. 1001, § 7; 2014, ch. 1015, §§ 8, 9; 2016, ch. 976, §§ 1, 2; 2017, ch. 295, § 1; 2018, ch. 1027, § 1; 2019, ch. 94, § 1; 2020, ch. 774, § 1.

Amendments. The 2018 amendment added (i)(5).

The 2019 amendment substituted “ten o'clock a.m. (10:00 a.m.) and eleven o'clock p.m. (11:00 p.m.) on Sunday” for “twelve o’clock (12:00) noon and seven o’clock p.m. (7:00 p.m.) on Sunday” at the end of (i)(1).

The 2020 amendment added (i)(6).

Effective Dates. Acts 2018, ch. 1027, § 3. May 21, 2018.

Acts 2019, ch. 94, § 3. March 28, 2019.

Acts 2020, ch. 774, § 2. July 15, 2020.

Attorney General Opinions. The statutory provisions that prohibit retail sales by Tennessee liquor stores on Sundays and holidays but permit Tennessee distilleries to make retail sales on Sundays and holidays do not violate the Commerce Clause or equal protection guarantees. OAG 16-08, 2016 Tenn. AG LEXIS 8 (3/1/2016).

The General Assembly may provide by private act that no proceeds from Bradley County's tourist accommodation tax may be distributed to or on behalf of any city located in the county. OAG 16-04, 2016 Tenn. AG LEXIS 6 (2/5/2016).

Licensed distilleries that sell their own alcoholic beverages for consumption on the premises, as authorized by T.C.A. §57-3-202(i)(4), must remit the 15% tax imposed on the sales price of each alcoholic beverage sold under T.C.A. §57-4-301(c)(1), because they are exercising the taxable privilege of “engag[ing] in the business of selling at retail in this state alcoholic beverages for consumption on the premises.” These distilleries are not, however, required to remit the annual taxes imposed by §57-4-301(b)(1), which are specific to facilities licensed under T.C.A.57-4-101 et seq. OAG 18-12, 2018 Tenn. AG LEXIS 10 (3/16/2018).

57-3-203. Wholesaler's licenses — Qualifications of applicants — Permits — Salespersons — Employees — Fees — Disposition of alcoholic beverages after nonlicensed persons secure title.

  1. Any person, or general or limited partnership desiring to sell at wholesale any alcoholic spirituous beverage shall make application to the commission for a license so to do, which application shall be in writing and verified, on the forms herein authorized to be prescribed and furnished; thereupon the commission may grant such license subject to the restrictions of this chapter.
    1. Each applicant for a wholesale license shall pay to the commission a one-time, nonrefundable fee in the amount of three hundred dollars ($300) when the application is submitted for review. Such wholesaler's license, however, shall not be issued unless and until there shall be paid to the commission a separate license fee therefor of three thousand dollars ($3,000), and no license shall be issued except to individuals who are citizens of this state and either have been for at least the two (2) years next preceding citizens of this state or have been citizens of this state at any time for at least fifteen (15) consecutive years.
    2. Notwithstanding any law to the contrary, it shall be lawful for any qualified applicant, including a corporation meeting the requirements of subsection (f), to receive and operate under both an alcoholic beverage wholesaler's license issued pursuant to this part, and a beer wholesaler's license issued pursuant to § 57-5-102, upon satisfying all federal, state and local registration and permitting requirements applicable to both operations. Nothing in this title is intended or shall be construed to prohibit a wholesaler licensed under this part or under chapter 5 of this title from holding more than one (1) license or permit for the wholesale of alcoholic beverages or beer in this state.
  2. No wholesale alcoholic spirituous beverage license shall be issued until the applicant has secured a basic permit to engage in the wholesale liquor business from the federal government.
    1. Each representative or salesperson of any wholesale licensee in this state must obtain a permit from the commission before soliciting orders from retail licensees. No other person shall be allowed to solicit orders for alcoholic beverages from retail licensees, and retail licensees shall not give an order to anyone other than the holder of a wholesale salesperson's permit.
    2. Where a wholesaler licensed under this part also maintains a beer wholesale operation as provided in subdivision (b)(2), it shall be lawful for anyone holding a permit pursuant to this subsection (d) to carry out similar duties with respect to such beer wholesale operation; provided, that the permit holder has also satisfied any legal requirements applicable to such function within a beer wholesale operation.
    1. Every wholesale licensee shall, before employing any person to dispense alcoholic beverages, secure from the commission an employee's permit authorizing such person to serve as an employee in the place of business of such wholesaler. It is made the duty of the wholesaler to see that each person dispensing alcoholic beverages in the wholesaler's place of business has an employee's permit as above required, which permit must be on the person of such employee or upon the premises of the licensee at all times, subject to inspection by the commission or its duly authorized agent. Nothing in this subdivision (e)(1) requires an employee of a wholesaler to obtain a permit unless the employee is directly involved with the delivery or sale of alcoholic beverages. Employees involved only in warehousing, administrative, or clerical services for a wholesaler are not required to obtain a permit under this subdivision (e)(1).
    2. Where a wholesaler licensed under this part also maintains a beer wholesale operation as provided in subdivision (b)(2), it shall be lawful for anyone holding a permit pursuant to this subsection (e) to carry out similar duties with respect to such beer wholesale operation; provided, that the permit holder has also satisfied any legal requirements applicable to such function within a beer wholesale operation.
    1. A wholesaler's license may, in the discretion of the commission, be issued to a corporation; provided, that no license shall be issued to any corporation unless such corporation meets the following requirements:
      1. All of its capital stock must be owned by individuals who have been residents of Tennessee for not less than five (5) years next preceding or who at any time have been residents of this state for at least fifteen (15) consecutive years, and who have not been convicted within a period of five (5) years preceding acquisition of such stock for violation of either state or United States prohibition laws or revenue laws relating to intoxicating liquors;
      2. No person owning stock in such corporation shall have any interest as partner or otherwise in a business licensed to engage in the retail sale of intoxicating liquors in Tennessee;
      3. No stock of any corporation licensed under this subsection (f) shall be transferred to any person who has not been a resident of Tennessee for at least five (5) years next preceding or who at any time has not been a resident of Tennessee for at least fifteen (15) consecutive years.
    2. The commission is hereby authorized to revoke the wholesale license of any corporation which fails to comply with this subsection (f).
  3. Notwithstanding subsection (f), the commission, in its discretion, may issue a wholesale license to any corporation which has been domiciled in this state for twenty-five (25) years, or which has acquired substantially all of the assets of a Tennessee partnership (or limited liability company) which partnership (or limited liability company) has been continuously operating in this state for ten (10) years where such corporation has the majority of its assets located in this state and all of whose officers in actual control of the wholesale operations shall be actively present at the licensed premises and who are in actual charge of the operations of the wholesaler substantially full- time. If any officers of such corporation have been convicted of any violation of the criminal code or of any violation relating to the enforcement of the liquor laws, no license under this subsection (g) shall issue.
  4. If at any time subsequent to the granting of a wholesale liquor license to any such corporation, the majority of its assets shall cease to remain and be located in this state, and if any of its active officers shall cease to be residents of Tennessee, then the commission, within its discretion, shall have the right to revoke such license. The commission is further granted the right to make investigations at any time to ascertain if the majority of the assets of such corporation are located within this state  and whether all of its active officers are residents of Tennessee, as above set out, and should its findings be in the negative, it may revoke such license. The foregoing shall apply irrespective of the provisions contained in § 57-3-404(d).
    1. No license entitling the holder thereof to sell or deal in alcoholic spirituous beverages at wholesale shall be granted except in respect to premises situated within either a county having a population in excess of one hundred twenty thousand (120,000), according to the 2010 federal census or any subsequent federal census, or a county in which the voters of any municipality or other jurisdiction within that county have approved retail package sales or consumption of alcoholic beverages on premises by referendum as provided in this title.
    2. Notwithstanding the requirement imposed in subdivision (i)(1), a wholesale liquor license, limited to the sale and distribution of wine only, not to exceed six thousand (6,000) cases of wine per year, may be issued to an entity that is located in any municipality which:
      1. Has authorized the sale of alcoholic beverages for consumption on the premises pursuant to § 57-4-103;
      2. Has a bond rating of AAA issued by a nationally recognized bond rating agency; and
      3. Is located within a county which has a bond rating of AAA issued by a nationally recognized bond rating agency.
  5. When a person not licensed under this chapter secures title to any alcoholic beverage owned by a wholesaler as a result of a default on loans or revocation of license, the manufacturer, rectifier, distiller or vintner who sold the alcoholic beverage to the wholesaler shall purchase the alcoholic beverage from the nonlicensed person who secured title in order that the creditors are satisfied. Any manufacturer, rectifier, distiller or vintner who fails within thirty (30) days following default or revocation of license of the wholesaler to effect the purchase from the nonlicensed person who secured title shall not be allowed to ship or sell any alcoholic beverage in this state until the purchase is effected.

Acts 1939, ch. 49, § 7; 1945, ch. 167, § 4; 1947, ch. 73, § 1; 1947, ch. 166, § 1; 1949, ch. 284, §§ 3, 5; C. Supp. 1950, § 6648.12 (Williams, § 6648.10); Acts 1951, ch. 98, § 1; impl. am. Acts 1959, ch. 9, § 14; Acts 1961, ch. 145, §§ 1, 2; impl. am. Acts 1963, ch. 257, §§ 11, 19; Acts 1967, ch. 215, § 3; 1972, ch. 656, § 1; 1976, ch. 505, §§ 1, 2; T.C.A. (orig. ed.), § 57-116; Acts 1995, ch. 396, §§ 2, 3; 2004, ch. 876, § 5; 2012, ch. 592, § 1; 2013, ch. 394, § 1; 2014, ch. 554, §§ 21-24; 2017, ch. 443, § 5.

Compiler's Notes. For tables of U.S. decennial populations of Tennessee counties, see Volume 13 and its supplement.

Cross-References. Nonresident sellers, title 57, ch. 3, part 6.

Nonresident seller's permittees prohibited from interest in business licensed under this section, §57-3-604.

Textbooks. Tennessee Jurisprudence, 16 Tenn. Juris., Intoxicating Liquors, §§ 8, 11, 15.

Attorney General Opinions. Pursuant to T.C.A.§57-3-203(f), the Alcoholic Beverage Commission may issue a wholesaler's license only to a corporation whose stock is owned by individuals who meet certain statutory requirements, and not to a corporation owned by another form of business such as another corporation, limited liability company, or trust.  OAG 11-48, 2011 Tenn. AG LEXIS 50 (5/26/11).

The residency and corporate asset location requirements for applicants seeking a license as an alcoholic beverage wholesaler or package retailer under T.C.A. §§57-3-203 and57-3-204 violate the Commerce Clause of the United States Constitution.  OAG 12-59, 2012 Tenn. AG LEXIS 59 (6/6/12).

NOTES TO DECISIONS

1. Interest in Retail Business.

Evidence that person holding 50 percent of stock in wholesale liquor business made loans to son who bought interest in retail liquor store and to owner of retail liquor store justified revocation of wholesale license on ground that licensee had interest in retail liquor business. Bluff City Beverage Co. v. MacFarland, 208 Tenn. 340, 345 S.W.2d 896, 1961 Tenn. LEXIS 292 (1961).

57-3-204. Retailer's licenses — Fees — Disposition of alcoholic beverages after retailer ceases doing business — Sale by manufacturer and other entities. [Effective until July 1, 2021. See the version effective on July 1, 2021.]

  1. For the retail sale of alcoholic spirituous beverages, including beer and malt beverages, as in this chapter defined, a license may be approved for transfer and reissued as herein provided. New licenses shall only be issued for jurisdictions that first approve the retail sale of alcoholic spirituous beverages by local option election conducted under § 57-3-106 after April 1, 2018, or to applicants who have filed applications prior to April 20, 2018. Except as provided in the preceding sentence, in all instances, any person, firm, or corporation desiring to sell alcoholic spirituous beverages, including beer and malt beverages, to patrons or customers, in sealed packages only, and not for consumption on the premises except for conducting tastings pursuant to § 57-3-404(h)(2), shall first acquire the right to purchase an existing license, from an existing licensee and then make application to the commission for the transfer of such existing retailer's license, which application shall be in writing and verified, on forms herein authorized to be prescribed and furnished, and disclosing the name of the proposed transferor of the license; and the commission may, subject to the restrictions of this chapter, approve the transfer of such retailer's license as set forth in § 57-3-212. If the premises with respect to which the license transfer is sought is owned by a person, firm, or corporation not the applicant, the application shall include the name and address of the owner. If the ownership of the premises should change after a license is granted, the licensee shall, within ten (10) days after becoming aware of such change in ownership, notify the commission in writing of the name and address of the new owner.
    1. Each applicant for a retail license or retail license transfer shall pay to the commission a one-time, nonrefundable fee in the amount of three hundred dollars ($300) when the application or application for transfer is submitted for review. A retailer's license under this section shall not be issued or transferred until the applicant has paid to the commission the annual license fee of eight hundred fifty dollars ($850).
    2. No retail license under this section may be issued or transferred to or held by, to any individual:
      1. Who has not been a bona fide resident of this state during the two-year period immediately preceding the date upon which application is made to the commission or, with respect to renewal of any license issued pursuant to this section, who has not at any time been a resident of this state for at least ten (10) consecutive years;
      2. Who has been convicted of a felony under the laws of this state, any other state or the United States;
      3. Who has had a license related to the manufacture, sale or distribution of any form of alcoholic beverages revoked for cause;
      4. Who is not twenty-one (21) years of age or older;
      5. Who has an interest, whether direct or indirect, in a manufacturer, distiller, rectifier, liquor wholesaler, winery, distributor, retail food store or farm winery selling alcoholic beverages that is licensed in this state, except that the spouse of an applicant for a retail license may own and hold a farm wine permit if the spouse does not hold a retailer's license issued under this section;
      6. Who, other than as a member of the governing body of a city or county, appoints or supervises any law enforcement officer, who is a law enforcement official or who is an employee of the commission;
      7. Who intends to carry on the business authorized by the license as the agent or on behalf of another;
      8. Who at the time of the time of application for renewal of any license issued under this section would not be eligible for the license upon a first application;
      9. Who is the holder of a valid existing license issued for the sale of wine in a retail food store under § 57-3-803, and amendments thereto;
      10. Who does not own the premises for which a license is sought, or does not, at the time of application, have a written and enforceable lease thereon;
      11. Whose spouse would be ineligible to receive a license under this section for any reason other than citizenship, residence requirements or age, except that this subdivision (b)(2)(K) shall not apply in determining eligibility for a renewal license; and
      12. Whose spouse has been convicted of a felony or other crime that would disqualify a person from licensure under this section and such felony or other crime was committed during the time that the spouse held a license under this section.
    3. The commission may, in its discretion, issue such a retail license to a corporation; provided, that no such license shall be issued to, transferred to, or maintained by any corporation unless such corporation meets the following requirements:
      1. No retail license shall be issued to, transferred to, or maintained by any corporation if any officer, director or stockholder owning any capital stock in the corporation, would be ineligible to receive a retailer's license for any reason specified in subdivision (b)(2), if application for such retail license had been made by the officer, director or stockholder in their individual capacity;
      2. All of its capital stock must be owned by individuals who are residents of this state and either have been residents of the state for the two (2) years immediately preceding the date application is made to the commission or, with respect to renewal of any license issued pursuant to this section, who has at any time been a resident of this state for at least ten (10) consecutive years;
      3. No person owning stock in such corporation shall have any interest as partner or otherwise, either direct or indirect, in any business licensed to engage in the distribution of liquor, spirits, wine or high alcohol content beer in Tennessee; and
      4. No stock of any corporation licensed under this section shall be transferred to any person who is not a resident of this state and either has not been a resident of the state for at least two (2) years next preceding or who at any time has not been a resident of this state for at least ten (10) consecutive years.
    4. It is the intent of the general assembly to distinguish between licenses authorized generally under this title and those specifically authorized under this section. Because licenses granted under this section include the retail sale of liquor, spirits and high alcohol content beer which contain a higher alcohol content than those contained in wine or beer, as defined in § 57-5-101(b), it is in the interest of this state to maintain a higher degree of oversight, control and accountability for individuals involved in the ownership, management and control of licensed retail premises. For these reasons, it is in the best interest of the health, safety and welfare of this state to require all licensees to be residents of this state as provided herein and the commission is authorized and instructed to prescribe such inspection, reporting and educational programs as it shall deem necessary or appropriate to ensure that the laws, rules and regulations governing such licensees are observed.
    1. If a retail licensee ceases to do business through the voluntary or involuntary loss of the licensee's license, or if a person not licensed under this chapter obtains title to alcoholic beverages of a retail licensee as a result of a defaulted loan or execution, the wholesaler who sold the alcoholic beverages to the retailer shall purchase such alcoholic beverages from the retailer at a base price of the wholesalers' laid-in cost of such alcoholic beverage. A wholesaler shall be permitted an offset or charge against such payment for any outstanding obligation owed to the wholesaler by such licensee or for reasonable labor, restocking and transportation charges.
    2. Any licensee objecting to the reasonableness of the offset or charge may petition the commission to review such, and shall designate the wholesaler as a respondent. The commission shall conduct a contested case hearing pursuant to the Uniform Administrative Procedure Act, compiled in title 4, chapter 5, part 3, to consider the objection.
    3. The obligation imposed on a wholesaler under this section does not apply to any product which:
      1. Is damaged or cannot be legally sold in this state;
      2. Is not sold to a retailer within one hundred eighty (180) days of demand for repayment;
      3. The wholesaler from whom the product was purchased is not the designated distributor pursuant to § 57-3-301, at the time demand is made;
      4. Product contains a price tag not readily removable; or
      5. Is sold in a commemorative bottle, seasonal decanter or other novelty container.
      1. Notwithstanding § 57-3-406(b), if a retail licensee is not in debt to a wholesaler for any credit law violations or refused check and provides a thirty-day irrevocable notice of surrender to the commission prior to the termination of the license, the licensee shall be able to sell any unopened bottle inventory to any customer below the cost paid by the retailer to purchase the alcoholic beverages from the wholesaler so long as the price is not lower than ten percent (10%) of such purchase price.
      2. A retail licensee selling a product in accordance with this section shall not subsequently purchase that product from the wholesaler prior to termination of the license.
      3. A retail licensee unable to sell product in accordance with this subdivision (c)(4) shall be able to keep the remaining product for personal use.
    1. A manufacturer licensed under § 57-3-202, or under chapter 2 of this title, is authorized to obtain a license under this section for the retail sale of alcoholic beverages or products containing alcohol subject to the further restrictions of this subsection (d).
    2. A manufacturer seeking to obtain a retail license under this subsection (d) shall apply to the commission on such forms as the commission may prescribe.
    3. A retail license issued under this subsection (d) may be located only on the licensed premises of the manufacturers and may be located on such premises whether or not such premises is located in a jurisdiction which has authorized retail sale of alcoholic beverages pursuant to § 57-3-106.
    4. A manufacturer licensed to sell at retail at its retail location under this subsection (d) may sell only such products as are manufactured on the manufacturer's premises; provided, that at such retail location no more than five gallons (5 gal.) or one sixth (1/6) of a barrel of its products may be sold to any one (1) individual per visit to the premises.
    5. A retail license issued under this subsection (d) may be issued to a manufacturer, regardless of the residency or domicile of the manufacturer, notwithstanding the requirements imposed by subsection (b).
    6. Notwithstanding any other law to the contrary, a retail licensee, held by a manufacturer or distiller, may serve samples of the product manufactured or distilled at the premises to any person of legal drinking age without cost or may include such samples as part of a tour of the manufacturer's or distiller's premises available to the public with or without cost. Such samples may be made available at either the premises of the retailer or at such other location on the premises of the manufacturer or distiller holding such retail license which other location has been disclosed to the commission and may be any location on the premises permitted by federal law.
    7. If the retail license under this subsection (d) is held by a manufacturer of high alcohol content beer authorized to manufacture such beverages, then:
      1. Notwithstanding any other law, the retailer may sell its products at such retail location which are manufactured on the manufacturer's premises in accordance with subdivisions (d)(7)(B) and (C) in sizes and containers that are made available through the general wholesale/retail distribution system; provided, that subsection (e) related to the delivery of alcoholic beverages by wholesalers shall be applicable;
        1. Such retailer may also offer and sell beer, as beer is defined in § 57-5-101(b), for consumption on or off-premises, at the same physical location at which it offers samples of and sells its high alcohol content beer; provided, that such beer and high alcohol content beer is brewed on the manufacturer's premises located at the retail location; and further provided, that such manufacturer may distribute such beer as defined in § 57-5-101(b) only to wholesalers licensed pursuant to chapter 5 of this title. A wholesaler of such products may permit a manufacturer to deliver its products to the retail premises operated by such manufacturer directly; provided, that the wholesaler permitting such direct shipment must include the amounts delivered in its inventory and depletions for purposes of tax collections;
        2. Notwithstanding any other law to the contrary, the hours and days on which such beer or high alcohol content beer may be sold at retail by a manufacturer authorized to manufacture such beverages pursuant to § 57-2-103(f) shall be as set by the governing body of the local jurisdiction in which the manufacturer is located, and such governing body shall further have the authority to authorize the sale of high alcohol content beer and beer within the same store notwithstanding § 57-3-404(e)(1);
      2. Such retailer may sell no more than five gallons (5 gal.) or one sixth (1/6) of a barrel of beer or high alcohol content beer or any combination of such beverages to any one (1) individual per visit to the premises.
    1. A manufacturer licensed under chapter 2 of this title, or this chapter 3, may distribute alcoholic beverages or products containing alcohol only to a wholesaler licensed pursuant to § 57-3-203 where such alcoholic beverages or products are intended for sale at retail in this state; provided, however, that, where such alcoholic beverages are not intended for resale, a manufacturer may make complimentary distributions as allowed by § 57-3-404 and on a periodic basis to its employee or employees in the normal course of employment and to others not licensed under this chapter for routine business or marketing purposes. A wholesaler may permit a manufacturer to deliver its products to the retail premises operated by such manufacturer directly; provided, that the wholesaler permitting such direct shipment must include the amounts delivered in its inventory and depletions for purposes of tax collections imposed pursuant to §§ 57-3-302, 57-6-201 and 57-3-501.
    2. No wholesaler may restrict the sale of its products to a retail license held by a manufacturer but must make its products available to any retailer licensed under this section.
    1. Subsection (d) applies only in those jurisdictions where the voters have approved the sale of alcoholic beverages for off-premises consumption by referendum held pursuant to § 57-3-106 or where the voters have, by local option election, approved the issuance of such special retail license. A special local option election as authorized by this subsection (f), shall be conducted in the manner prescribed in § 57-3-106; provided, that the question submitted to the voters shall be in the following form:

      To permit licensed manufacturers to obtain a license to sell alcoholic beverages at retail in  (here insert jurisdiction).

      Not to permit licensed manufacturers to obtain a license to sell alcoholic beverages at retail in  (here insert jurisdiction).

    2. In any county having within its boundaries a manufacturer, where the voters of municipalities located within such county have approved the sale of alcoholic beverages, pursuant to § 57-3-106, and where the total population of such municipalities exceeds fifty percent (50%) of the population of the county, no such referendum shall be required; provided, that the authorized retail sales by a manufacturer where no referendum is required is not effective until January 1, 1995.
    1. A restaurant licensed by the commission pursuant to § 57-4-101(a)(1) may also own, or operate, a separate retail license issued under this section to permit off-premise consumption, if such entity satisfies the further conditions of either subdivision (g)(2) or (g)(3).
      1. Notwithstanding the restrictions of § 57-3-208, a restaurant or its affiliate may own or operate a license issued pursuant to § 57-3-204 if:
        1. The retail licensee is located within the same structure as the restaurant in a defined section or portion of the structure as approved by the commission;
        2. The retail package store and the restaurant are located in a structure constructed prior to 1925 that is placed on the national register of historic places;
        3. The structure within which such retail package store and restaurant are located shall not be closer than three hundred feet (300') nor more distant than three hundred fifty feet (350') from a federal interstate highway;
        4. The structure within which such retail package store and restaurant are located shall be no farther than one hundred feet (100') from a public park adjacent to a navigable waterway, and shall be no closer than five hundred feet (500') nor more distant than five hundred fifty feet (550') from a railway station providing commuter rail service that railway employs standard gauge locomotives and coaches; and
        5. The structure within which such retail package store and restaurant are located shall be located within a county having a metropolitan form of government with a population in excess of five hundred thousand (500,000), according to the 2010 federal census or any subsequent federal census.
      2. Notwithstanding § 57-3-208, the retail license issued pursuant to this subsection (g) to a restaurant or its affiliate shall be subject to the requirements of this title. It shall be the duty of the commission to verify that all persons owning or operating a retail license issued under this subdivision (g)(2) meet the qualifications to receive a license.
      1. Notwithstanding the requirements of § 57-3-208, a restaurant, or its affiliate, may also own or operate a license issued pursuant to § 57-3-204, if:
        1. The location of the retail licensee is in the same structure as the restaurant; provided, the retail operations are conducted in a portion of the structure as identified to and approved by the commission;
        2. The structure within which the restaurant and the retail licensee are located is situated on:
          1. A tract or tracts of land having at least twenty-four (24) contiguous acres;
          2. Land adjacent to a federal interstate highway; and
          3. Property no farther than two hundred fifty feet (250') from a commercial railroad tract, upon which tracts of land there is a residence constructed prior to 1860 and upon which tracts is located a historic stable and carriage house;
        3. The retail licensee is owned or authorized to be operated by an entity recognized as exempt from taxation under Internal Revenue Code Section 501(c)(3) (26 U.S.C. § 501(c)(3)); and
        4. The retail licensee is located within a county having a metropolitan form of government with a population in excess of five hundred thousand (500,000), according to the 2010 federal census or any subsequent federal census.
      2. Notwithstanding § 57-3-208, any retail license issued pursuant to this subdivision (g)(3) shall be subject to the requirements of this title. It shall be the duty of the commission to verify that the entity owning or operating the retail license meets the qualifications of this subdivision (g)(3) and that all of the owners or operators authorized by the nonprofit entity to operate the license otherwise qualify under this title.
    1. Notwithstanding this section or § 57-3-208, a terminal building of a commercial air carrier airport that is a member of the Tennessee Association of Air Carrier Airports may obtain a retail license under this section authorizing the licensee to sell alcoholic beverages at retail in accordance with this subsection (h).
    2. A retail license issued under subdivision (h)(1) authorizes a terminal building of a commercial air carrier airport to operate one (1) or more noncontiguous retail stores located within the area of the terminal building secured by the transportation security administration or its successor organization.
    3. A retail store licensed under this subsection (h):
      1. May sell alcoholic beverages that:
  2. Are manufactured within this state;

Are packaged in tamper-resistant sealed packages; and

Indicate on the packaging that the customer is prohibited from consuming the alcoholic beverage until the customer reaches the customer's final destination;

Notwithstanding §57-3-406(e) and (h), may sell alcoholic beverages on any day and during any hours during which the terminal building of a commercial air carrier airport is authorized to sell alcoholic beverages for on-premises consumption;

May store inventory at one (1) or more secure locations other than the premises of the retail store that are located within the terminal building;

May transfer and transport inventory to and from storage locations; and

Shall not conduct consumer educational seminars or authorize its employees or agents to receive complimentary samples at a sales demonstration under §57-3-404(h).

Subsection (a) and subdivisions (b)(1), (2), (3)(A), and (3)(C) shall apply to retail stores licensed under this subsection (h).

The commission shall verify that a terminal building of a commercial air carrier airport meets all qualifications for licensure under this subsection (h) prior to issuing a license.

As used in this subsection (h), unless the context otherwise requires, “terminal building of a commercial air carrier airport” has the same meaning as defined in §57-4-102.

Acts 1939, ch. 49, § 8; 1945, ch. 167, § 5; 1949, ch. 284, §§ 4, 5; C. Supp. 1950, § 6648.13 (Williams, § 6648.11); impl. am. Acts 1963, ch. 251, § 20; Acts 1972, ch. 656, § 1; 1976, ch. 505, §§ 1, 2; 1977, ch. 461, § 1; T.C.A. (orig. ed.), § 57-117; Acts 1980, ch. 771, § 2; 1981, ch. 156, §§ 1, 2; 1984, ch. 746, § 1; 1988, ch. 836, § 1; 1990, ch. 794, §§ 1, 2; 1993, ch. 368, §§ 1, 2; 1995, ch. 214, § 1; 1995, ch. 396, §§ 4, 5; 1996, ch. 925, § 1; 1997, ch. 543, §§ 1-3; 2004, ch. 876, § 3; 2009, ch. 395, § 3; 2010, ch. 788, §§ 1, 2; 2010, ch. 1009, § 5; 2011, ch. 448, §§ 13, 15, 16; 2012, ch. 947, § 3; 2014, ch. 554, §§ 15, 27, 32; 2015, ch. 428, § 1; 2016, ch. 1068, § 1; 2018, ch. 783, §§ 5, 7-10.

Compiler's Notes. For tables of population of Tennessee municipalities, and for U.S. decennial populations of Tennessee counties, see Volume 13 and its supplement.

Acts 2010, ch. 1009 was repassed over the governor's veto on June 4, 2010.

Acts 2018, ch. 783, § 14 provided that sections 7 through 12 of the act shall be repealed on July 1, 2021, and the provisions of this section and §§ 57-3-208 and57-3-212 as they existed prior to being amended by Sections 7 through 12 of the act shall be reinstated.

Amendments. The 2018 amendment added (c)(4);  and, effective from April 20, 2018 until July 1, 2021, substituted “approved for transfer and reissued as herein provided. New licenses shall only be issued for jurisdictions that first approve the retail sale of alcoholic spirituous beverages by local option election conducted under §57-3-106 after April 1, 2018, or to applicants who have filed applications prior to April 20, 2018” for “issued as herein provided” at the end of the first sentence in (a); In the second sentence of (a), added “Except as provided in the preceding sentence, in all instances,” at the beginning, inserted “ first acquire the right to purchase an existing license, from an existing licensee and then” preceding “make application”, inserted “, and disclosing the name of the proposed transferor of the license” following “prescribed and furnished”, substituted “approve the transfer of” for “issue” preceding “such retailer’s license”, and added “as set forth in §57-3-212.” at the end; in (b)(1), inserted “or retail license transfer” near the beginning and “or application for transfer” near the end of the first sentence, and inserted “or transferred” following “issued” and substituted “has” for “shall have” in the second sentence; in (b)(2), inserted “or transferred to or held by,” following “issued”; and in (b)(3) and (b)(3)(A), inserted “, transferred to, or maintained by” following “issued to”.

Effective Dates. Acts 2018, ch.783, § 14. April 20, 2018.

Cross-References. Nonresident seller's permittees prohibited from interest in business licensed under this section, §57-3-604.

Textbooks. Tennessee Jurisprudence, 16 Tenn. Juris., Intoxicating Liquors, §§ 8, 9, 15.

Attorney General Opinions. The residency and corporate asset location requirements for applicants seeking a license as an alcoholic beverage wholesaler or package retailer under T.C.A. §§57-3-203 and57-3-204 violate the Commerce Clause of the United States Constitution.  OAG 12-59, 2012 Tenn. AG LEXIS 59 (6/6/12).

The residency requirements set forth in T.C.A. §57-3-204(b)(2)(A), as amended by Acts 2014, ch. 554, § 27, violates the Commerce Clause of the United States Constitution.  The requirements facially discriminate against nonresidents, and the intent expressed in T.C.A. §57-3-204(b)(4) does not establish a local purpose sufficient to justify the discriminatory licensing provisions. OAG 14-83, 2014 Tenn. AG LEXIS 86 (9/12/14).

NOTES TO DECISIONS

1. Implied Condition of License.

A licensee to sell liquor at retail accepted his license with the implied condition that laws and regulations which would curtail it might legally be made during the term of the license. Davis v. Boyd, 192 Tenn. 409, 241 S.W.2d 510, 1951 Tenn. LEXIS 421 (1951).

2. Name in Which License Issued.

Where son operated liquor store under trade name and county and state licenses were issued in trade name and city license was issued to the mother as doing business under such trade name, claims made against the son in bankruptcy proceedings for debts incurred in trade name were valid and the fact that licenses were not issued in the name of the son did not render such contracts illegal. Robinson v. Hamilton Wholesale Liquor Co., 132 F.2d 285, 1942 U.S. App. LEXIS 2581 (6th Cir. Tenn. 1942).

3. Conspiracy to Sell Without License.

The sale of intoxicating liquors by one not licensed by the state to do so is a misdemeanor and there can be a conviction under former T.C.A. §39-1-601 for the crime of conspiring to commit such offense. Owens v. State, 178 Tenn. 32, 154 S.W.2d 529, 1941 Tenn. LEXIS 25 (1941) (decided prior to enactment of §39-12-103 in 1989).

4. Exceeding Terms of License.

If the commission finds that persons who have been issued a retail license have gone into the wholesale field it has the duty to call them to account for their actions, and if the proof shows that this is true it has the discretionary right to revoke their licenses. Little v. MacFarland, 206 Tenn. 665, 337 S.W.2d 233, 1960 Tenn. LEXIS 416 (1960).

In considering whether terms of licenses had been violated by holders of retail licenses commission could properly consider the definitions of “retail sale,” “sale at retail,” “retailer,” “wholesale sale” and “sale at wholesale” as contained in former T.C.A. §57-3-101. Little v. MacFarland, 206 Tenn. 665, 337 S.W.2d 233, 1960 Tenn. LEXIS 416 (1960).

5. Durational Residency Requirements Violated Dormant Commerce Clause.

Liquor retailer residency requirements in T.C.A. §57-3-204 violated the Dormant Commerce Clause as the Commerce Clause limited state alcohol regulations, and the durational residency requirements (DRR) were discriminatory on their face; the Twenty-first Amendment did not authorize states to impose DRR on the owners of liquor retailers and wholesalers as they were not inherent to a legitimate three-tier system, and DRR discriminated against nonresidents by creating a barrier to entering the Tennessee retail liquor market and favored Tennessee interests at the expense of interstate commerce. Byrd v. Tenn. Wine & Spirits Retailers Ass'n, — F. Supp. 2d —,  2017 U.S. Dist. LEXIS 58315 (M.D. Tenn. Apr. 14, 2017).

Durational residency requirements in T.C.A. §57-3-204(b)(2)(A), (3)(A)-(B), and (3)(D) violated dormant Commerce Clause because they were facially discriminatory by preventing out-of-state residents from obtaining retail licenses and protecting in-state residents who were retailers, and there was no evidence that Tennessee could not achieve its goals through nondiscriminatory means; those provisions were severed from Tennessee statute. Byrd v. Tenn. Wine & Spirits Retailers Ass'n,   — F.3d —, 2018 FED App. 0035P, 2018 FED App. 35P, 2018 U.S. App. LEXIS 4081 (6th Cir. Feb. 21, 2018).

Two-year residency requirement for retail license applicants violates the Commerce Clause because not only is the requirement ill suited to promote responsible sales and consumption practices, an interest the United States Supreme Court recognizes as legitimate, but there are obvious alternatives that better serve that goal without discriminating against nonresidents; the State remains free to monitor the practices of retailers and to take action against those who violate the law. Tenn. Wine & Spirits Retailers Ass'n v. Thomas, — U.S. —, 139 S. Ct. 2449, — L. Ed. 2d —, 2019 U.S. LEXIS 4399 (June 26, 2019).

Because the predominant effect of the 2-year residency requirement for retail license applicants is simply to protect the Tennessee Wine and Spirits Retailers Association's members from out-of-state competition and has little relationship to public health and safety, that provision violates the Commerce Clause and is not saved by U.S. Const. amend. 21, § 2; the 2-year durational-residency requirement plainly favors Tennesseans over nonresidents. Tenn. Wine & Spirits Retailers Ass'n v. Thomas, — U.S. —, 139 S. Ct. 2449, — L. Ed. 2d —, 2019 U.S. LEXIS 4399 (June 26, 2019).

Two-year residency requirement for retail license applicants violates the Commerce Clause because it expressly discriminates against nonresidents and has at best a highly attenuated relationship to public health or safety; the 2-year residency requirement poorly serves the goal of enabling the State to ensure that only law-abiding and responsible applicants receive licenses, and it is not needed to enable the State to maintain oversight over liquor store operators. Tenn. Wine & Spirits Retailers Ass'n v. Thomas, — U.S. —, 139 S. Ct. 2449, — L. Ed. 2d —, 2019 U.S. LEXIS 4399 (June 26, 2019).

57-3-204. Retailer's licenses — Fees — Disposition of alcoholic beverages after retailer ceases doing business — Sale by manufacturer and other entities. [Effective on July 1, 2021. See the version effective until July 1, 2021.]

  1. For the retail sale of alcoholic spirituous beverages, including beer and malt beverages, as in this chapter defined, a license may be issued as herein provided. Any person, firm, or corporation desiring to sell alcoholic spirituous beverages, including beer and malt beverages, to patrons or customers, in sealed packages only, and not for consumption on the premises except for conducting tastings pursuant to § 57-3-404(h)(2), shall make application to the commission for a retailer's license, which application shall be in writing and verified, on forms herein authorized to be prescribed and furnished; and the commission may, subject to the restrictions of this chapter, issue such retailer's license. If the premises with respect to which the license is sought is owned by a person, firm or corporation not the applicant, the application shall include the name and address of the owner. If the ownership of the premises should change after a license is granted, the licensee shall, within ten (10) days after becoming aware of such change in ownership, notify the commission in writing of the name and address of the new owner.
    1. Each applicant for a retail license shall pay to the commission a one-time, nonrefundable fee in the amount of three hundred dollars ($300) when the application is submitted for review. A retailer's license under this section shall not be issued until the applicant shall have paid to the commission the annual license fee of eight hundred fifty dollars ($850).
    2. No retail license under this section may be issued to any individual:
      1. Who has not been a bona fide resident of this state during the two-year period immediately preceding the date upon which application is made to the commission or, with respect to renewal of any license issued pursuant to this section, who has not at any time been a resident of this state for at least ten (10) consecutive years;
      2. Who has been convicted of a felony under the laws of this state, any other state or the United States;
      3. Who has had a license related to the manufacture, sale or distribution of any form of alcoholic beverages revoked for cause;
      4. Who is not twenty-one (21) years of age or older;
      5. Who has an interest, whether direct or indirect, in a manufacturer, distiller, rectifier, liquor wholesaler, winery, distributor, retail food store or farm winery selling alcoholic beverages that is licensed in this state, except that the spouse of an applicant for a retail license may own and hold a farm wine permit if the spouse does not hold a retailer's license issued under this section;
      6. Who, other than as a member of the governing body of a city or county, appoints or supervises any law enforcement officer, who is a law enforcement official or who is an employee of the commission;
      7. Who intends to carry on the business authorized by the license as the agent or on behalf of another;
      8. Who at the time of the time of application for renewal of any license issued under this section would not be eligible for the license upon a first application;
      9. Who is the holder of a valid existing license issued for the sale of wine in a retail food store under § 57-3-803, and amendments thereto;
      10. Who does not own the premises for which a license is sought, or does not, at the time of application, have a written and enforceable lease thereon;
      11. Whose spouse would be ineligible to receive a license under this section for any reason other than citizenship, residence requirements or age, except that this subdivision (b)(2)(K) shall not apply in determining eligibility for a renewal license; and
      12. Whose spouse has been convicted of a felony or other crime that would disqualify a person from licensure under this section and such felony or other crime was committed during the time that the spouse held a license under this section.
    3. The commission may, in its discretion, issue such a retail license to a corporation; provided, that no such license shall be issued to any corporation unless such corporation meets the following requirements:
      1. No retail license shall be issued to any corporation if any officer, director or stockholder owning any capital stock in the corporation, would be ineligible to receive a retailer's license for any reason specified in subdivision (b)(2), if application for such retail license had been made by the officer, director or stockholder in their individual capacity;
      2. All of its capital stock must be owned by individuals who are residents of this state and either have been residents of the state for the two (2) years immediately preceding the date application is made to the commission or, with respect to renewal of any license issued pursuant to this section, who has at any time been a resident of this state for at least ten (10) consecutive years;
      3. No person owning stock in such corporation shall have any interest as partner or otherwise, either direct or indirect, in any business licensed to engage in the distribution of liquor, spirits, wine or high alcohol content beer in Tennessee; and
      4. No stock of any corporation licensed under this section shall be transferred to any person who is not a resident of this state and either has not been a resident of the state for at least two (2) years next preceding or who at any time has not been a resident of this state for at least ten (10) consecutive years.
    4. It is the intent of the general assembly to distinguish between licenses authorized generally under this title and those specifically authorized under this section. Because licenses granted under this section include the retail sale of liquor, spirits and high alcohol content beer which contain a higher alcohol content than those contained in wine or beer, as defined in § 57-5-101(b), it is in the interest of this state to maintain a higher degree of oversight, control and accountability for individuals involved in the ownership, management and control of licensed retail premises. For these reasons, it is in the best interest of the health, safety and welfare of this state to require all licensees to be residents of this state as provided herein and the commission is authorized and instructed to prescribe such inspection, reporting and educational programs as it shall deem necessary or appropriate to ensure that the laws, rules and regulations governing such licensees are observed.
    1. If a retail licensee ceases to do business through the voluntary or involuntary loss of the licensee's license, or if a person not licensed under this chapter obtains title to alcoholic beverages of a retail licensee as a result of a defaulted loan or execution, the wholesaler who sold the alcoholic beverages to the retailer shall purchase such alcoholic beverages from the retailer at a base price of the wholesalers' laid-in cost of such alcoholic beverage. A wholesaler shall be permitted an offset or charge against such payment for any outstanding obligation owed to the wholesaler by such licensee or for reasonable labor, restocking and transportation charges.
    2. Any licensee objecting to the reasonableness of the offset or charge may petition the commission to review such, and shall designate the wholesaler as a respondent. The commission shall conduct a contested case hearing pursuant to the Uniform Administrative Procedure Act, compiled in title 4, chapter 5, part 3, to consider the objection.
    3. The obligation imposed on a wholesaler under this section does not apply to any product which:
      1. Is damaged or cannot be legally sold in this state;
      2. Is not sold to a retailer within one hundred eighty (180) days of demand for repayment;
      3. The wholesaler from whom the product was purchased is not the designated distributor pursuant to § 57-3-301, at the time demand is made;
      4. Product contains a price tag not readily removable; or
      5. Is sold in a commemorative bottle, seasonal decanter or other novelty container.
      1. Notwithstanding § 57-3-406(b), if a retail licensee is not in debt to a wholesaler for any credit law violations or refused check and provides a thirty-day irrevocable notice of surrender to the commission prior to the termination of the license, the licensee shall be able to sell any unopened bottle inventory to any customer below the cost paid by the retailer to purchase the alcoholic beverages from the wholesaler so long as the price is not lower than ten percent (10%) of such purchase price.
      2. A retail licensee selling a product in accordance with this section shall not subsequently purchase that product from the wholesaler prior to termination of the license.
      3. A retail licensee unable to sell product in accordance with this subdivision (c)(4) shall be able to keep the remaining product for personal use.
    1. A manufacturer licensed under § 57-3-202, or under chapter 2 of this title, is authorized to obtain a license under this section for the retail sale of alcoholic beverages or products containing alcohol subject to the further restrictions of this subsection (d).
    2. A manufacturer seeking to obtain a retail license under this subsection (d) shall apply to the commission on such forms as the commission may prescribe.
    3. A retail license issued under this subsection (d) may be located only on the licensed premises of the manufacturers and may be located on such premises whether or not such premises is located in a jurisdiction which has authorized retail sale of alcoholic beverages pursuant to § 57-3-106.
    4. A manufacturer licensed to sell at retail at its retail location under this subsection (d) may sell only such products as are manufactured on the manufacturer's premises; provided, that at such retail location no more than five gallons (5 gal.) or one sixth (1/6) of a barrel of its products may be sold to any one (1) individual per visit to the premises.
    5. A retail license issued under this subsection (d) may be issued to a manufacturer, regardless of the residency or domicile of the manufacturer, notwithstanding the requirements imposed by subsection (b).
    6. Notwithstanding any other law to the contrary, a retail licensee, held by a manufacturer or distiller, may serve samples of the product manufactured or distilled at the premises to any person of legal drinking age without cost or may include such samples as part of a tour of the manufacturer's or distiller's premises available to the public with or without cost. Such samples may be made available at either the premises of the retailer or at such other location on the premises of the manufacturer or distiller holding such retail license which other location has been disclosed to the commission and may be any location on the premises permitted by federal law.
    7. If the retail license under this subsection (d) is held by a manufacturer of high alcohol content beer authorized to manufacture such beverages, then:
      1. Notwithstanding any other law, the retailer may sell its products at such retail location which are manufactured on the manufacturer's premises in accordance with subdivisions (d)(7)(B) and (C) in sizes and containers that are made available through the general wholesale/retail distribution system; provided, that subsection (e) related to the delivery of alcoholic beverages by wholesalers shall be applicable;
        1. Such retailer may also offer and sell beer, as beer is defined in § 57-5-101(b), for consumption on or off-premises, at the same physical location at which it offers samples of and sells its high alcohol content beer; provided, that such beer and high alcohol content beer is brewed on the manufacturer's premises located at the retail location; and further provided, that such manufacturer may distribute such beer as defined in § 57-5-101(b) only to wholesalers licensed pursuant to chapter 5 of this title. A wholesaler of such products may permit a manufacturer to deliver its products to the retail premises operated by such manufacturer directly; provided, that the wholesaler permitting such direct shipment must include the amounts delivered in its inventory and depletions for purposes of tax collections;
        2. Notwithstanding any other law to the contrary, the hours and days on which such beer or high alcohol content beer may be sold at retail by a manufacturer authorized to manufacture such beverages pursuant to § 57-2-103(f) shall be as set by the governing body of the local jurisdiction in which the manufacturer is located, and such governing body shall further have the authority to authorize the sale of high alcohol content beer and beer within the same store notwithstanding § 57-3-404(e)(1);
      2. Such retailer may sell no more than five gallons (5 gal.) or one sixth (1/6) of a barrel of beer or high alcohol content beer or any combination of such beverages to any one (1) individual per visit to the premises.
    1. A manufacturer licensed under chapter 2 of this title, or this chapter 3, may distribute alcoholic beverages or products containing alcohol only to a wholesaler licensed pursuant to § 57-3-203 where such alcoholic beverages or products are intended for sale at retail in this state; provided, however, that, where such alcoholic beverages are not intended for resale, a manufacturer may make complimentary distributions as allowed by § 57-3-404 and on a periodic basis to its employee or employees in the normal course of employment and to others not licensed under this chapter for routine business or marketing purposes. A wholesaler may permit a manufacturer to deliver its products to the retail premises operated by such manufacturer directly; provided, that the wholesaler permitting such direct shipment must include the amounts delivered in its inventory and depletions for purposes of tax collections imposed pursuant to §§ 57-3-302, 57-6-201 and 57-3-501.
    2. No wholesaler may restrict the sale of its products to a retail license held by a manufacturer but must make its products available to any retailer licensed under this section.
    1. Subsection (d) applies only in those jurisdictions where the voters have approved the sale of alcoholic beverages for off-premises consumption by referendum held pursuant to § 57-3-106 or where the voters have, by local option election, approved the issuance of such special retail license. A special local option election as authorized by this subsection (f), shall be conducted in the manner prescribed in § 57-3-106; provided, that the question submitted to the voters shall be in the following form:

      To permit licensed manufacturers to obtain a license to sell alcoholic beverages at retail in  (here insert jurisdiction).

      Not to permit licensed manufacturers to obtain a license to sell alcoholic beverages at retail in  (here insert jurisdiction).

    2. In any county having within its boundaries a manufacturer, where the voters of municipalities located within such county have approved the sale of alcoholic beverages, pursuant to § 57-3-106, and where the total population of such municipalities exceeds fifty percent (50%) of the population of the county, no such referendum shall be required; provided, that the authorized retail sales by a manufacturer where no referendum is required is not effective until January 1, 1995.
    1. A restaurant licensed by the commission pursuant to § 57-4-101(a)(1) may also own, or operate, a separate retail license issued under this section to permit off-premise consumption, if such entity satisfies the further conditions of either subdivision (g)(2) or (g)(3).
      1. Notwithstanding the restrictions of § 57-3-208, a restaurant or its affiliate may own or operate a license issued pursuant to § 57-3-204 if:
        1. The retail licensee is located within the same structure as the restaurant in a defined section or portion of the structure as approved by the commission;
        2. The retail package store and the restaurant are located in a structure constructed prior to 1925 that is placed on the national register of historic places;
        3. The structure within which such retail package store and restaurant are located shall not be closer than three hundred feet (300') nor more distant than three hundred fifty feet (350') from a federal interstate highway;
        4. The structure within which such retail package store and restaurant are located shall be no farther than one hundred feet (100') from a public park adjacent to a navigable waterway, and shall be no closer than five hundred feet (500') nor more distant than five hundred fifty feet (550') from a railway station providing commuter rail service that railway employs standard gauge locomotives and coaches; and
        5. The structure within which such retail package store and restaurant are located shall be located within a county having a metropolitan form of government with a population in excess of five hundred thousand (500,000), according to the 2010 federal census or any subsequent federal census.
      2. Notwithstanding § 57-3-208, the retail license issued pursuant to this subsection (g) to a restaurant or its affiliate shall be subject to the requirements of this title. It shall be the duty of the commission to verify that all persons owning or operating a retail license issued under this subdivision (g)(2) meet the qualifications to receive a license.
      1. Notwithstanding the requirements of § 57-3-208, a restaurant, or its affiliate, may also own or operate a license issued pursuant to § 57-3-204, if:
        1. The location of the retail licensee is in the same structure as the restaurant; provided, the retail operations are conducted in a portion of the structure as identified to and approved by the commission;
        2. The structure within which the restaurant and the retail licensee are located is situated on:
          1. A tract or tracts of land having at least twenty-four (24) contiguous acres;
          2. Land adjacent to a federal interstate highway; and
          3. Property no farther than two hundred fifty feet (250') from a commercial railroad tract, upon which tracts of land there is a residence constructed prior to 1860 and upon which tracts is located a historic stable and carriage house;
        3. The retail licensee is owned or authorized to be operated by an entity recognized as exempt from taxation under Internal Revenue Code Section 501(c)(3) (26 U.S.C. § 501(c)(3)); and
        4. The retail licensee is located within a county having a metropolitan form of government with a population in excess of five hundred thousand (500,000), according to the 2010 federal census or any subsequent federal census.
      2. Notwithstanding § 57-3-208, any retail license issued pursuant to this subdivision (g)(3) shall be subject to the requirements of this title. It shall be the duty of the commission to verify that the entity owning or operating the retail license meets the qualifications of this subdivision (g)(3) and that all of the owners or operators authorized by the nonprofit entity to operate the license otherwise qualify under this title.
    1. Notwithstanding this section or § 57-3-208, a terminal building of a commercial air carrier airport that is a member of the Tennessee Association of Air Carrier Airports may obtain a retail license under this section authorizing the licensee to sell alcoholic beverages at retail in accordance with this subsection (h).
    2. A retail license issued under subdivision (h)(1) authorizes a terminal building of a commercial air carrier airport to operate one (1) or more noncontiguous retail stores located within the area of the terminal building secured by the transportation security administration or its successor organization.
    3. A retail store licensed under this subsection (h):
      1. May sell alcoholic beverages that:
  2. Are manufactured within this state;

Are packaged in tamper-resistant sealed packages; and

Indicate on the packaging that the customer is prohibited from consuming the alcoholic beverage until the customer reaches the customer's final destination;

Notwithstanding §57-3-406(e) and (h), may sell alcoholic beverages on any day and during any hours during which the terminal building of a commercial air carrier airport is authorized to sell alcoholic beverages for on-premises consumption;

May store inventory at one (1) or more secure locations other than the premises of the retail store that are located within the terminal building;

May transfer and transport inventory to and from storage locations; and

Shall not conduct consumer educational seminars or authorize its employees or agents to receive complimentary samples at a sales demonstration under §57-3-404(h).

Subsection (a) and subdivisions (b)(1), (2), (3)(A), and (3)(C) shall apply to retail stores licensed under this subsection (h).

The commission shall verify that a terminal building of a commercial air carrier airport meets all qualifications for licensure under this subsection (h) prior to issuing a license.

As used in this subsection (h), unless the context otherwise requires, “terminal building of a commercial air carrier airport” has the same meaning as defined in §57-4-102.

Acts 1939, ch. 49, § 8; 1945, ch. 167, § 5; 1949, ch. 284, §§ 4, 5; C. Supp. 1950, § 6648.13 (Williams, § 6648.11); impl. am. Acts 1963, ch. 251, § 20; Acts 1972, ch. 656, § 1; 1976, ch. 505, §§ 1, 2; 1977, ch. 461, § 1; T.C.A. (orig. ed.), § 57-117; Acts 1980, ch. 771, § 2; 1981, ch. 156, §§ 1, 2; 1984, ch. 746, § 1; 1988, ch. 836, § 1; 1990, ch. 794, §§ 1, 2; 1993, ch. 368, §§ 1, 2; 1995, ch. 214, § 1; 1995, ch. 396, §§ 4, 5; 1996, ch. 925, § 1; 1997, ch. 543, §§ 1-3; 2004, ch. 876, § 3; 2009, ch. 395, § 3; 2010, ch. 788, §§ 1, 2; 2010, ch. 1009, § 5; 2011, ch. 448, §§ 13, 15, 16; 2012, ch. 947, § 3; 2014, ch. 554, §§ 15, 27, 32; 2015, ch. 428, § 1; 2016, ch. 1068, § 1; 2018, ch. 783, §§ 5, 7-10.

Compiler's Notes. For tables of population of Tennessee municipalities, and for U.S. decennial populations of Tennessee counties, see Volume 13 and its supplement.

Acts 2010, ch. 1009 was repassed over the governor's veto on June 4, 2010.

Acts 2018, ch. 783, § 14 provided that sections 7 through 12 of the act shall be repealed on July 1, 2021, and the provisions of this section and §§57-3-208 and57-3-212 as they existed prior to being amended by Sections 7 through 12 of the act shall be reinstated.

Amendments. The 2018 amendment added (c)(4); and, effective from April 20, 2018 until July 1, 2021, substituted “approved for transfer and reissued as herein provided. New licenses shall only be issued for jurisdictions that first approve the retail sale of alcoholic spirituous beverages by local option election conducted under §57-3-106 after April 1, 2018, or to applicants who have filed applications prior to April 20, 2018” for “issued as herein provided” at the end of the first sentence in (a); In the second sentence of (a), added “Except as provided in the preceding sentence, in all instances,” at the beginning, inserted “ first acquire the right to purchase an existing license, from an existing licensee and then” preceding “make application”, inserted “, and disclosing the name of the proposed transferor of the license” following “prescribed and furnished”, substituted “approve the transfer of” for “issue” preceding “such retailer’s license”, and added “as set forth in §57-3-212.” at the end; in (b)(1), inserted “or retail license transfer” near the beginning and “or application for transfer” near the end of the first sentence, and inserted “or transferred” following “issued” and substituted “has” for “shall have” in the second sentence; in (b)(2), inserted “or transferred to or held by,” following “issued”; and in (b)(3) and (b)(3)(A), inserted “, transferred to, or maintained by” following “issued to”.

Effective Dates. Acts 2018, ch.783, § 14. April 20, 2018.

Cross-References. Nonresident seller's permittees prohibited from interest in business licensed under this section, §57-3-604.

Textbooks. Tennessee Jurisprudence, 16 Tenn. Juris., Intoxicating Liquors, §§ 8, 9, 15.

Attorney General Opinions. The residency and corporate asset location requirements for applicants seeking a license as an alcoholic beverage wholesaler or package retailer under T.C.A. §§57-3-203 and57-3-204 violate the Commerce Clause of the United States Constitution.  OAG 12-59, 2012 Tenn. AG LEXIS 59 (6/6/12).

The residency requirements set forth in T.C.A. §57-3-204(b)(2)(A), as amended by Acts 2014, ch. 554, § 27, violates the Commerce Clause of the United States Constitution.  The requirements facially discriminate against nonresidents, and the intent expressed in T.C.A. §57-3-204(b)(4) does not establish a local purpose sufficient to justify the discriminatory licensing provisions. OAG 14-83, 2014 Tenn. AG LEXIS 86 (9/12/14).

NOTES TO DECISIONS

1. Implied Condition of License.

A licensee to sell liquor at retail accepted his license with the implied condition that laws and regulations which would curtail it might legally be made during the term of the license. Davis v. Boyd, 192 Tenn. 409, 241 S.W.2d 510, 1951 Tenn. LEXIS 421 (1951).

2. Name in Which License Issued.

Where son operated liquor store under trade name and county and state licenses were issued in trade name and city license was issued to the mother as doing business under such trade name, claims made against the son in bankruptcy proceedings for debts incurred in trade name were valid and the fact that licenses were not issued in the name of the son did not render such contracts illegal. Robinson v. Hamilton Wholesale Liquor Co., 132 F.2d 285, 1942 U.S. App. LEXIS 2581 (6th Cir. Tenn. 1942).

3. Conspiracy to Sell Without License.

The sale of intoxicating liquors by one not licensed by the state to do so is a misdemeanor and there can be a conviction under former T.C.A. §39-1-601 for the crime of conspiring to commit such offense. Owens v. State, 178 Tenn. 32, 154 S.W.2d 529, 1941 Tenn. LEXIS 25 (1941) (decided prior to enactment of §39-12-103 in 1989).

4. Exceeding Terms of License.

If the commission finds that persons who have been issued a retail license have gone into the wholesale field it has the duty to call them to account for their actions, and if the proof shows that this is true it has the discretionary right to revoke their licenses. Little v. MacFarland, 206 Tenn. 665, 337 S.W.2d 233, 1960 Tenn. LEXIS 416 (1960).

In considering whether terms of licenses had been violated by holders of retail licenses commission could properly consider the definitions of “retail sale,” “sale at retail,” “retailer,” “wholesale sale” and “sale at wholesale” as contained in former T.C.A. §57-3-101. Little v. MacFarland, 206 Tenn. 665, 337 S.W.2d 233, 1960 Tenn. LEXIS 416 (1960).

5. Durational Residency Requirements Violated Dormant Commerce Clause.

Liquor retailer residency requirements in T.C.A. §57-3-204 violated the Dormant Commerce Clause as the Commerce Clause limited state alcohol regulations, and the durational residency requirements (DRR) were discriminatory on their face; the Twenty-first Amendment did not authorize states to impose DRR on the owners of liquor retailers and wholesalers as they were not inherent to a legitimate three-tier system, and DRR discriminated against nonresidents by creating a barrier to entering the Tennessee retail liquor market and favored Tennessee interests at the expense of interstate commerce. Byrd v. Tenn. Wine & Spirits Retailers Ass'n, — F. Supp. 2d —,  2017 U.S. Dist. LEXIS 58315 (M.D. Tenn. Apr. 14, 2017).

Durational residency requirements in T.C.A. §57-3-204(b)(2)(A), (3)(A)-(B), and (3)(D) violated dormant Commerce Clause because they were facially discriminatory by preventing out-of-state residents from obtaining retail licenses and protecting in-state residents who were retailers, and there was no evidence that Tennessee could not achieve its goals through nondiscriminatory means; those provisions were severed from Tennessee statute. Byrd v. Tenn. Wine & Spirits Retailers Ass'n,   — F.3d —, 2018 FED App. 0035P, 2018 FED App. 35P, 2018 U.S. App. LEXIS 4081 (6th Cir. Feb. 21, 2018).

Two-year residency requirement for retail license applicants violates the Commerce Clause because not only is the requirement ill suited to promote responsible sales and consumption practices, an interest the United States Supreme Court recognizes as legitimate, but there are obvious alternatives that better serve that goal without discriminating against nonresidents; the State remains free to monitor the practices of retailers and to take action against those who violate the law. Tenn. Wine & Spirits Retailers Ass'n v. Thomas, — U.S. —, 139 S. Ct. 2449, — L. Ed. 2d —, 2019 U.S. LEXIS 4399 (June 26, 2019).

Because the predominant effect of the 2-year residency requirement for retail license applicants is simply to protect the Tennessee Wine and Spirits Retailers Association's members from out-of-state competition and has little relationship to public health and safety, that provision violates the Commerce Clause and is not saved by U.S. Const. amend. 21, § 2; the 2-year durational-residency requirement plainly favors Tennesseans over nonresidents. Tenn. Wine & Spirits Retailers Ass'n v. Thomas, — U.S. —, 139 S. Ct. 2449, — L. Ed. 2d —, 2019 U.S. LEXIS 4399 (June 26, 2019).

Two-year residency requirement for retail license applicants violates the Commerce Clause because it expressly discriminates against nonresidents and has at best a highly attenuated relationship to public health or safety; the 2-year residency requirement poorly serves the goal of enabling the State to ensure that only law-abiding and responsible applicants receive licenses, and it is not needed to enable the State to maintain oversight over liquor store operators. Tenn. Wine & Spirits Retailers Ass'n v. Thomas, — U.S. —, 139 S. Ct. 2449, — L. Ed. 2d —, 2019 U.S. LEXIS 4399 (June 26, 2019).

57-3-205. Location of retail license restricted.

  1. No license entitling the holder thereof to sell or deal in alcoholic spirituous beverages at retail shall be granted with respect to premises not situated within either a municipality as defined in § 57-3-101 or within a civil district of a county, which district shall have a population of thirty thousand (30,000) persons or more, according to the federal census for the year 1950 or any subsequent census, but which civil district shall not have lying either wholly or partially within its boundaries a municipality as defined in § 57-3-101.
  2. This section shall not be construed to apply to any civil district of any county of this state which county has a population of not more than one hundred seventy-eight thousand five hundred (178,500) nor less than one hundred seventy-eight thousand four hundred (178,400), according to the federal census of 1940 or any subsequent federal census.

Acts 1939, ch. 49, § 5; C. Supp. 1950, § 6648.16 (Williams, § 6648.8); Acts 1951, ch. 52, § 2; T.C.A. (orig. ed.), § 57-118.

Compiler's Notes. For tables of U.S. decennial populations of Tennessee counties, see Volume 13 and its supplement.

Textbooks. Tennessee Jurisprudence, 16 Tenn. Juris., Intoxicating Liquors, §§ 6, 8.

NOTES TO DECISIONS

1. Constitutionality.

State statutes and ordinance of the metropolitan government of Nashville and Davidson County prohibiting retail sale of packaged liquor in the general services district while permitting its sale in the urban services district were reasonable and did not violate equal protection clause. Templeton v. Metropolitan Government of Nashville & Davidson County, 650 S.W.2d 743, 1983 Tenn. App. LEXIS 699 (Tenn. Ct. App. 1983).

2. Right to Attack Constitutionality of Section.

Bill by licensee in a town not located in a civil district having a population of 30,000 or more seeking to test the constitutionality of the provisions of this section relating to the licensing of retail liquor sales in civil districts of 30,000 or more could not be maintained where holder of the license was unable to show prejudice as a result of such provision. Davis v. Boyd, 192 Tenn. 409, 241 S.W.2d 510, 1951 Tenn. LEXIS 421 (1951).

3. General Services District.

Under the express definition of T.C.A. §57-3-205, the general services district standing alone is not a civil district within any category which would entitle it to the appointment of a commission under T.C.A. §57-3-108 to determine whether an individual should be granted a retail liquor license. Templeton v. Metropolitan Government of Nashville & Davidson County, 650 S.W.2d 743, 1983 Tenn. App. LEXIS 699 (Tenn. Ct. App. 1983).

57-3-206. Collection and disposition of wholesale and retail dealers license fees.

It is made the duty of the commission to collect all license fees paid or due the state on account of each license issued to a wholesale or retail dealer in alcoholic spirituous beverages, or in respect to the continuance of any of such licenses. The commission shall deposit collections with the state treasurer to be earmarked for and allocated to the commission for the purpose of the administration and enforcement of the duties, powers, and functions of the commission.

Acts 1939, ch. 49, § 13; mod. C. Supp. 1950, § 6648.19 (Williams, § 6648.16); impl. am. Acts 1963, ch. 257, § 22; T.C.A. (orig. ed.), § 57-119; Acts 2004, ch. 876, § 1.

57-3-207. Grape and Wine Law.

  1. This section shall be known and may be cited as the “Grape and Wine Law.” This section shall prevail over any conflicting statutory provision.
  2. A winery license may be issued as provided in this section for the manufacture of alcoholic vinous beverages, as defined in § 57-3-101, upon a verified, written application to the commission on the proper form authorized to be prescribed and furnished in this section, and the application may be granted by the commission, subject to the restrictions of this chapter. Any winery license issued pursuant to this section shall authorize the holder of the license to manufacture, but not rectify, alcoholic vinous beverages, unless the holder of the license is also a distiller or rectifier, or both, holding a license to distill or rectify, or both, alcoholic spirituous beverages, and the winery license shall authorize the holder of the license to place the alcoholic vinous beverages in containers or bottles. Out-of-state wineries may apply for and obtain a winery license issued in accordance with this section.
  3. Each applicant for a winery license issued pursuant to this section shall pay to the commission a one-time, nonrefundable fee in the amount of three hundred dollars ($300) when the application is submitted for review. The license shall not be issued until a license fee of one hundred fifty dollars ($150) is paid to the commission by the winery, but issuance of the license is exempt from the requirements of § 57-3-106. The commission shall deposit collections with the state treasurer to be earmarked for and allocated to the commission for the purpose of the administration and enforcement of the duties, powers and functions of the commission.
  4. No winery license shall be issued except to persons who have not been convicted, and whose officers and principals have not been convicted, within a period of five (5) years preceding application of any felony or any violation of any state or federal laws relating to alcoholic beverages.
  5. Notwithstanding this section, a private individual in that person's own home may manufacture wine in an amount not in excess of that amount annually permitted as of March 22, 1973, by federal statute and regulations relative to household manufacture and consumption; provided, that the wine is for personal consumption by members of that person's household.
    1. A winery licensed under this section may, to the extent permitted under federal law, serve wine, with or without charge, as samples for tasting on the premises at the winery and may sell wine at retail in sealed containers at the winery.
    2. A winery licensed under this section may donate wine without charge to nonprofit religious, educational or charitable institutions or associations.
    3. For purposes of this section, “premises” means any and all of the real property owned or leased by the winery.
  6. A winery licensed under this section may exchange wine in bulk with other wineries and the bulk exchange, whether in return for wine or other consideration, shall not be considered a sale subject to tax.
    1. In addition to its own wine, a winery or farm winery permit holder is authorized to sell at retail items related to or incidental to the use, consumption, dispensing, or storage of wine on the licensed premises. Such items may include, but are not limited to:
      1. Juices or concentrates derived from juices, or any agricultural products;
      2. Items used in home winemaking;
      3. Gift or tourism related items including baskets or gift cards;
      4. Utensils and supplies related or incidental to the use, consumption, dispensing or storage of wine, including, without limitation, wine glasses, corkscrews, beverage strainers, pourers, flasks, jiggers, stirrers, wine racks, wine refrigerators, wine cellars, pouring aids, coasters, bottle stoppers, decanters, carafes, glassware, ice crushers, bottle openers, can openers, and devices to maximize oxidation in uncorked wine bottles and other items used in connection with the consumption, storage, or dispensing of wine;
      5. Fruit, cheese, appetizers, chips, pretzels, and other snack foods or food items served to pair with wine;
      6. Nonalcoholic beverages;
      7. Ice, beverage coolers, and ice chests;
      8. Articles of clothing, accessories, and souvenir items imprinted with advertising, logos, slogans, trademarks, or messages related to wine or the winery's name;
      9. Smoking or tobacco related products; and
      10. Wine literature, cookbooks, or periodicals.
      1. A winery or farm winery permit holder is not authorized to sell at retail:
  7. Distilled spirits;
  8. Any licensee or other person who sells, furnishes, disposes of, gives or causes to be sold, furnished, disposed of or given, any wine in this state or for transport into this state, to any person under the age of majority as established by § 57-4-203(b), commits a Class A misdemeanor.
  9. The commission is empowered and authorized to promulgate such rules and regulations as may be necessary to carry out the duties of the commission as provided in this section, including, but not limited to, procedures governing the production, sale and transportation of wine. The commissioner of revenue shall establish procedures governing the keeping of records for tax purposes and the payment of taxes by a winery licensed under this section; and for any failure to comply with the procedures, the commissioner shall notify the commission, which is authorized to revoke or suspend the license of any winery.
  10. It is the duty of the commissioner of agriculture to disseminate the best information available as to the methods of cultivation of crops that may be utilized in Tennessee for the production of wine and the methods of making such wines. It is also the duty of the commissioner to establish reasonable procedures requiring proper sanitary conditions about the winery and to certify that these conditions have been met before the commission issues any license. The commissioner shall establish reasonable procedures requiring the process of producing wine to be carried on under proper sanitary conditions and in a sanitary manner; and for any failure to comply with the procedures, the commissioner shall notify the commission, which is authorized to revoke or suspend the license of any winery.
    1. Any nonprofit association organized to encourage and support grape growing and winemaking with ten (10) or more wineries licensed under this section as members shall be allowed to hold not more than twelve (12) wine festivals per calendar year. Each festival shall not exceed a period of seventy-two (72) hours.
    2. Any winery licensed under this section participating in a festival authorized by this subsection (m) shall be allowed to transport, serve and offer complimentary samples of their wines for tasting at the festival. The complimentary sample size shall be restricted to a one ounce (1 oz.) serving with only one (1) sample per person for each type of wine.
    3. Any winery licensed under this section participating in a festival authorized by this subsection (m) shall be allowed to transport wine produced by that winery to sell at the festival for consumption off-premises.
      1. Any nonprofit association authorized by this subsection (m) to hold a wine festival shall apply for a special occasion license as defined in § 57-4-102, in order for participating wineries licensed under this section to serve complimentary samples as described in subdivision (m)(2) and to sell wine produced by the wineries for consumption off-premises.
      2. Notwithstanding § 57-4-102(33)(A), a special occasion license issued for a wine festival authorized by this subsection (m) shall be for the duration of the festival for which application is made for a period not to exceed seventy-two (72) hours. A special occasion license issued pursuant to this subsection (m) shall only be available upon the payment of the fee as required by law for each separate day of the festival.
      3. A nonprofit association authorized to conduct a wine festival pursuant to this subsection (m) shall be permitted to hold the festival in any municipality or county of the state in the manner provided in subdivision (m)(5).
    4. A nonprofit association, as defined in subdivision (m)(1), is authorized to conduct a wine festival pursuant to this subsection (m) in a municipality or county of this state that has approved the sale of alcoholic beverages or has a licensed winery located in that municipality or county, subject to complying with all permit requirements of the municipality or county, and in all other municipalities or counties upon receiving approval of the legislative body of the municipality or county to hold such a festival at a location and in such manner authorized by such legislative body.
  11. If any provision of this section or application of this section to any person or circumstance is held invalid, the invalidity shall not affect other provisions or applications of the section that can be given effect without the invalid provision or application, and to that end the provisions of this section are declared to be severable.
    1. As used in this subsection (o):
      1. “Farm” means a farming operation located in Tennessee consisting of commercial vineyards, fruit orchards or fruit gardens or any combination of such farming operations;
      2. “Farm wine producer” means a farm which produces its own locally grown product from a vineyard, fruit orchard or fruit garden or any combination of such farming operations to be used in the making of wine; and
      3. “Wine” means an alcoholic beverage containing a minimum of ninety-five percent (95%) of the product of vineyards, fruit orchards or fruit gardens grown and harvested at a farm as the wine being sold by the farm wine producer.
    2. A farm wine permit may be issued as provided in this subsection (o) to a farm wine producer, upon verified, written application to the commission on the proper form authorized to be prescribed and furnished by the commission, and the application may be granted by the commission, subject to the further restrictions of this chapter, other than § 57-3-106.
    3. Each applicant for a farm wine permit shall pay to the commission a one-time, nonrefundable fee in the amount of three hundred dollars ($300) when the application is submitted for review. The permit shall not be issued until a permit fee of one hundred and fifty dollars ($150) is paid to the commission by the farm wine producer, but issuance of the permit is exempt from the requirements of § 57-3-106. The commission shall deposit collections with the state treasurer to be earmarked for and allocated to the commission for the purpose of the administration and enforcement of the duties, powers and functions of the commission.
    4. The holder of a farm wine permit may:
      1. Transport or have transported produce grown on the farm to a winery licensed pursuant to subsection (b), for the manufacture, bottling and labeling of unfortified wine from such produce;
      2. Receive such wine back from the winery manufacturing, bottling and labeling the wine for the farm wine producer;
      3. Offer on the premises of the farm single servings of its wine, with or without charge, as tastings for each wine sample; and
      4. Sell at retail on the premises of the farm sealed containers of wine made from the produce of its vineyard, orchard or fruit garden in a designated building or area.
    5. Subsections (d), (h), (i), (j), (m), (n), and (q) which apply to wineries shall also apply to farm wine permittees.
    1. A winery licensed under this section is authorized to receive produce from a farm wine producer grown on the farm for the purpose of manufacturing, bottling and labeling of wine for such producer. The wine label shall indicate the name of the farm where the fruit was grown and harvested and the name of the winery manufacturing, bottling and labeling such wine.
    2. Such winery shall be responsible for the payment of the state gallonage tax imposed pursuant to § 57-3-302 and the federal alcoholic beverage excise taxes due and owing on the wine bottled by the winery prior to the bottled wine leaving the winery's bonded premises.
    3. The winery is authorized to transport the wine from the winery back to the farm wine permit holder, notwithstanding § 57-3-107(b) or any other law to the contrary. It is lawful for common carriers to transport from the winery which manufactured, bottled and labeled such wine to the farm permit holder pursuant to an agreement or contract with a licensed winery.
    1. A winery licensed under this section that has a total annual wine production of fifty thousand gallons (50,000 gals.) or less shall be authorized to obtain an additional self-distribution permit from the commission subject to the obligations imposed in this subsection (q).
    2. No self-distribution permit shall be issued to or held by a winery that has registered a distribution contract with a wholesaler licensed pursuant to § 57-3-203, if the terms of that contract include distribution rights for a county that is located, in whole or in part, within one hundred (100) miles of the licensed winery where the wine being distributed has been manufactured, produced, or bottled. Any winery holding a self-distribution permit that registers such a distribution contract with a wholesaler or whose total output in a calendar year exceeds fifty thousand gallons (50,000 gals.) shall cease self-distributing its wine under subdivision (q)(3) and shall promptly surrender the winery's self-distribution permit.
    3. A winery seeking a self-distribution permit under this subsection (q) may distribute not more than three thousand (3,000) cases of wine manufactured, produced, or bottled on the winery's premises to any licensee holding a license issued pursuant to chapter 4, part 1 of this title, located within one hundred (100) miles of the winery's premises where such wine has been manufactured, produced, or bottled.
    4. A winery engaged in self-distribution under this section shall be responsible for all taxes and records which are imposed upon a wholesaler under § 57-3-203 which result from any direct sales under this subsection (q).
    5. The commission shall impose no additional fee or charge for the issuance of a self-distribution permit under this section.
    1. For purposes of this subsection (r), “satellite facility” means any facility or location other than the primary business location of a winery or farm wine producer.
    2. Any winery or any farm wine producer licensed by this section may conduct business at any two (2) satellite facilities in any jurisdiction where it is lawful to manufacture intoxicating liquors or intoxicating drinks pursuant to § 57-2-103(c) and (d). At its satellite facilities, the winery may conduct any business that is authorized at the licensed winery, except for the manufacturing and bottling of wine. At its satellite facilities, a farm wine producer may conduct any business that is authorized at the premises of the farm wine producer.
      1. Any winery licensed by this section or any farm wine producer shall obtain a satellite permit for each satellite facility utilized by the winery or farm wine producer from the commission in order to:
        1. Serve samples with or without charge;
        2. Sell wine for consumption on or off the permitted premises; and
        3. Sell any other products under subsections (h) and (o).
      2. In addition to the permit authorized in subdivision (r)(3)(A), any winery licensed under this section that pays taxes under § 57-3-302(a) at its licensed facility on fifty thousand gallons (50,000 gals.) or less of wine or finished wine product each calendar year or any farm wine producer licensed under this section may qualify for a satellite permit to authorize no more than three (3) such wineries, farm wine producers, or any combination thereof, to conduct business at one (1) satellite facility.
      3. Any violation of any rule or statute by a satellite facility shall be deemed to be a violation by any winery or farm winery producer that participates in a satellite facility.
      4. Any winery or farm winery producer, seeking to establish or operate a satellite facility shall disclose to the commission each winery or farm winery producer participating in the satellite facility. Any participant in a satellite facility shall provide any information requested by the commission prior to participating in the satellite facility.
    3. A satellite permit issued to a winery or farm wine producer pursuant to this subsection (r) shall only be available upon the payment of a one-time application fee to the commission of three hundred dollars ($300) per satellite location and upon the payment of an annual license fee of one hundred fifty dollars ($150).
      1. Any winery or farm wine producer licensed under this section that has obtained a satellite permit and elects to charge consumers for samples may only sell such samples that are manufactured by the winery or farm wine producer.
      2. [Deleted by 2019 amendment.]
      1. Wineries and farm wine producers that pay taxes under § 57-3-302(a) at their licensed facility on more than fifty thousand gallons (50,000 gals.) of wine during a calendar year and that operate a satellite facility shall obtain wine provided at their satellite facilities from a wholesaler licensed pursuant to § 57-3-203. The wholesaler may permit the winery or farm wine producer to transport wine or finished wine product from the winery or the farm to its satellite facilities; provided, that the wholesaler includes the amounts delivered in its inventory, reports depletions for purposes of tax collection, and is responsible for the payment of taxes on such depletions.
      2. Wineries and farm wine producers that pay taxes under § 57-3-302(a) at their licensed facility on fifty thousand gallons (50,000 gals.) or less of wine or finished wine product each calendar year are not required to obtain wine provided at their satellite facilities from a wholesaler. Wineries may transport wine or finished wine product from their wineries to their satellite facilities. Wineries may transport wine made from produce from farm wine producers to the producers' satellite facilities. Farm wine producers may transport wine from their farm to their satellite facilities.
      3. Wine and finished wine product sold for consumption on the premises at the satellite facilities are subject to the same taxation as wine sold for consumption on the premises at the winery or on the premises of the farm wine producer.
    1. Any winery or farm wine producer licensed pursuant to this section may qualify for and hold a license under chapter 4 of this title as a restaurant or limited service restaurant; provided, that notwithstanding chapter 4 of this title related to restrictions or prohibitions on licensees under chapter 4 of this title, a restaurant or limited service restaurant may sell for off-premises consumption, wine manufactured pursuant to this section at such location or at any other restaurant or limited service restaurant licensed under chapter 4 of this title that is owned by the same person.
    2. Notwithstanding any law, rule, or regulation to the contrary, any winery or farm wine producer licensed under this section may serve wine manufactured by the winery or the farm wine producer for consumption on the premises of the winery or farm wine producer.
    1. Except as provided in subdivision (t)(2), any sale of wine authorized by this section for consumption on the premises at the winery or on the premises of the farm wine producer shall be subject to taxation pursuant to § 57-4-301(c) in addition to any sales tax which is due. The taxes shall be paid and collected in the manner prescribed by § 57-4-301 and the rules of the department of revenue promulgated under the authority of that section.
    2. Nothing in this section authorizes the collection of taxes pursuant to § 57-4-301(c) for the sale of wine:
      1. As samples for tasting, with or without charge, for consumption on the premises; or
      2. At retail in sealed containers for consumption on the premises to the extent permitted under federal law.
  12. Notwithstanding the term “wine” as defined in §§ 57-3-101, 57-3-802, and 57-4-102, wineries and farm wine producers licensed under this section may label and advertise wine made from apples as cider, apple cider, or hard cider; provided, that nothing in this subsection (u) shall affect the marketing of cider products distributed as beer by wholesalers permitted under § 57-5-103.
    1. Notwithstanding any other law to the contrary, a winery or farm wine permit holder may purchase or import finished wine product from another winery in this state or another state in an amount not to exceed, in the aggregate, fifty thousand gallons (50,000 gals.) per year. A winery or farm wine permit holder that purchases or imports finished wine product under this subdivision (v)(1) may sell, distribute, serve for the purposes of samples or tastings, or otherwise use or dispose of such product in any manner that the winery or farm wine permit holder is authorized to use or dispose of wine under this section that is manufactured, bottled, or produced by the winery or farm wine permit holder.
    2. [Deleted by 2019 amendment.]
  13. As used in this section, “finished wine product” means any wine product that is ready for use by an end user and that bears the label of the winery or farm wine permit holder that purchased or imported the finished wine product under subsection (v).
  14. Wholesalers utilized by wineries or farm wine producers may permit wineries and farm wine producers to transport their products for sale, which are sold on the premises of the winery, the farm wine producer, or the satellite facility; provided, that the wholesaler permitting such direct shipment shall include the amounts delivered in its inventory, report depletions for purposes of tax collection, and be responsible for the payment of taxes on such depletions.

Except as otherwise provided in subsection (v), wine that is not manufactured or bottled on the licensed premises, or in the case of a farm winery permit holder, wine that was not made pursuant to subsection (o); or

Beer.

Nothing in this subsection (h) shall prohibit a winery or farm winery permit holder from holding a license pursuant to §57-4-101, as authorized by subsection (s), and engaging in the activities permitted under such license.

Nothing in this subsection (h) shall prohibit a winery or farm winery permit holder from holding a beer license for on-premises consumption and engaging in the activities permitted under such license.

(A)  A winery licensed under this section that satisfies the requirements of subdivision (h)(3)(B) may sell alcoholic beverages on the premises of the winery if the label of the alcoholic beverage product sold contains the name of the winery or is so intrinsically related to the property upon which the winery is located as to be identified as a product of or created for the winery.

A winery exercising the rights conferred by subdivision (h)(3)(A) must satisfy the following requirements:

The winery is located on a tract or tracts of land having at least twenty-four (24) contiguous acres;

The winery is located on property adjacent to a federal highway;

The winery is located on property with a commercial railroad track not more than two hundred fifty feet (250') from the nearest property line;

The winery is located on property with a structure that was originally constructed prior to 1860 as a private residence;

The winery is located on property that is leased or owned by a not-for-profit corporation exempt from federal income taxation under § 501(c)(3) of the Internal Revenue Code; and

The winery is located on property located within the jurisdictional limits of a county with a metropolitan form of government having a population of not less than five hundred thousand (500,000), according to the 2010 federal census or any subsequent federal census.

A winery licensed under this section located in this state may sell no more than five (5) cases or sixty (60) liters of wine to any single retail customer in one (1) day. It shall be legal for any purchaser of wine from a winery licensed under this section to transport into and within this state no more than five (5) cases or sixty (60) liters of wine in one (1) day. Any wine transported pursuant to this section must be accompanied by a bill of sale sufficiently identifying the nature, quantity, purchaser, date and place of purchase of the wine. Bills of sale purchased from out-of-state wineries licensed under this section must reflect that the wine was purchased for transport into this state and that Tennessee taxes have been paid. Any person transporting such wine in excess of five gallons (5 gals.) shall have with the shipment a receipt or other documentation demonstrating that the wine was purchased from a winery as licensed in this section.

Acts 1939, ch. 49, § 9; 1949, ch. 284, §§ 4, 5; C. Supp. 1950, § 6648.14 (Williams, § 6648.12); impl. am. Acts 1963, ch. 257, § 23; Acts 1973, ch. 8, § 1; 1977, ch. 126, §§ 1, 2; T.C.A. (orig. ed.), § 57-120; Acts 1983, ch. 59, § 1; 1983, ch. 229, §§ 1-3; 1985, ch. 386, §§ 1, 3, 4; 1988, ch. 580, §§ 1-3; 1991, ch. 292, § 1; 1995, ch. 151, § 1; 2001, ch. 163, §§ 1-3; 2004, ch. 876, § 2; 2006, ch. 826, § 1; 2007, ch. 433, §§ 1, 2; 2009, ch. 273, § 1; 2009, ch. 434, § 4; 2012, ch. 691, § 1; 2014, ch. 817, § 1; 2014, ch. 1015, §§ 1-5; 2015, ch. 270, § 1; 2015, ch. 366, § 1; 2015, ch. 451, § 1; 2015, ch. 467, § 1; 2016, ch. 687, § 1; 2016, ch. 857, § 1; 2017, ch. 269, §§ 1-5; 2017, ch. 373, §§ 1, 2; 2017, ch. 411, § 1; 2019, ch. 74, §§ 1-5.

Code Commission Notes.

The misdemeanor in this section has been designated as a Class A misdemeanor by authority of §40-35-110, which provides that an offense designated a misdemeanor without specification as to category is a Class A misdemeanor. See also §39-11-114.

Compiler's Notes. The misdemeanor penalty provisions in subsection (j) may have been affected by the Criminal Sentencing Act of 1989. See §§39-11-114,40-35-110,40-35-111.

Acts 2009, ch. 273 contained a preamble which read: “WHEREAS, on October 24, 2008, in Jelovsek, et al. v. Bredesen , et al., the United States Court of Appeals for the Sixth Circuit held that portions of Tennessee's Grape and Wine Law is discriminatory on its face and remanded the case to the United States District Court for further proceedings; and

“WHEREAS, if Tennessee's Grape and Wine Law is left as it exists, and the district court ultimately holds that it violates the dormant commerce clause of the Constitution, which appears likely, the judicial branch of government will amend the law to make it comport with the commerce clause; and

“WHEREAS, if the General Assembly fails to address the defects in the law, the district court may strike portions of the law which would prevent wineries from operating in Tennessee;”.

Pursuant to Article III, Section 18 of the Constitution of Tennessee, Acts 2014, ch. 817 took effect on April 28, 2014.

Acts 2015, ch. 270, § 2 provided that the act, which amended (t), shall apply to any sales made on or after May 24, 2014.

Acts 2015, ch. 451,  § 2 provided that the act, which added (r)(3)(B) to (D), shall apply to any permit issued or renewed on or after July 1, 2015.

Amendments. The 2019 amendment substituted “that pays taxes under §57-3-302(a) at its licensed facility on fifty thousand gallons (50,000 gals.) or less of wine or finished wine product each calendar year” for “that has a total annual wine production of fifty thousand gallons (50,000 gals.) or less” in (r)(3)(B); deleted the former last sentence in (r)(5)(A), which read: “Any wine provided at the satellite facility for sales, whether for tastings, for consumption on the premises, and for consumption off the premises, shall be obtained from a wholesaler licensed pursuant to §57-3-203.”; deleted former (r)(5)(B), which read: “A wholesaler of the winery or farm wine producer's products may permit a winery or farm wine producer to deliver for sale products which are sold on the premises of the winery, the farm wine producer, or the satellite facility; provided, that the wholesaler permitting such direct shipment shall include the amounts delivered in its inventory, report depletions for purposes of tax collection, and be responsible for the payment of taxes of such depletions.”; added (r)(6); deleted former (v)(2) which read: “As used in this subsection (v), “finished wine product” means any wine product that is ready for use by an end user and that bears the label of the winery or farm wine permit holder that purchased or imported the finished wine product under this subsection (v).”; and added (w) and (x).

Effective Dates. Acts 2019, ch. 74, § 6. March 28, 2019.

Cross-References. Viticulture, title 43, ch. 30.

Penalty for Class A misdemeanor, §40-35-111.

NOTES TO DECISIONS

1. Constitutionality.

Tennessee’s ban on the direct shipment of alcoholic beverages (including wine) to consumers is valid. Jelovsek v. Bresden, 482 F. Supp. 2d 1013, 2007 U.S. Dist. LEXIS 23814 (E.D. Tenn. Mar. 30, 2007), aff'd in part and vacated in part, Jelovsek v. Bredesen, 545 F.3d 431, 2008 FED App. 0386P (6th Cir.), 2008 U.S. App. LEXIS 22295 (6th Cir. Tenn. 2008).

Tennessee's Grape and Wine Law is discriminatory on its face because it impermissibly favors Tennessee interests at the expense of interstate commerce. Jelovsek v. Bredesen, 545 F.3d 431, 2008 FED App. 386P, 2008 U.S. App. LEXIS 22295 (6th Cir. Oct. 24, 2008).

57-3-208. Certificate required — Contents — Exceptions. [Effective until July 1, 2021. See the version effective on July 1, 2021.]

  1. As a condition precedent to the issuance of a license under § 57-3-204, every applicant for a license under that section shall submit with the application to the commission a certificate signed by the county mayor or chair of the county commission in which the licensed premises are to be located if outside the corporate limits of a municipality or, if within a municipality, from the mayor or a majority of the commission, city council, or legislative body of the municipality, by whatsoever name designated, or if the municipality has no mayor, from the highest executive of the municipality.
    1. The certificate must state:
      1. That the applicant or applicants who are to be in actual charge of the business have not been convicted of a felony within a ten-year period immediately preceding the date of application and, if a corporation, that the executive officers or those in control have not been convicted of a felony within a ten-year period immediately preceding the date of the application;
      2. That the applicant or applicants have secured a location for the business which complies with all restrictions of any local law, ordinance, or resolution, duly adopted by the local jurisdiction, as to the location of the business;
      3. That the applicant or applicants have complied with any local law, ordinance or resolution duly adopted by the local authorities regulating the number of retail licenses to be issued within the jurisdiction;

        [Effective until July 1, 2021.]

      4. For any applicant or applicants acquiring the right to purchase from an existing licensee and transferring the license to another location, that the new location is not within one thousand five hundred feet (1,500') of another location engaged in the retail sale of alcoholic spirituous beverages and is located within the same jurisdiction wherein the transferor premises was located;
      5. The certificate remains valid unless there is a change of ownership or location. If either of these events occurs, a new certificate must be obtained prior to renewal.
    2. Each applicant or officer identified in subdivision (b)(1)(A) must obtain and submit with the certificate a local and national criminal history record obtained from a third party using a multistate criminal records locator or other similar commercial nationwide database with validation. A criminal history record that indicates that the applicant or officer has not been convicted of a felony within the immediately preceding ten-year period serves as proof satisfactory that the applicant or officer has complied with subdivision (b)(1)(A).
  2. Municipalities and counties are hereby authorized to limit the location of retail liquor stores and the number of licenses issued within their jurisdictions. No local law, ordinance or resolution may limit the location and number of licenses authorized under § 57-3-204, so as to unreasonably restrict the availability of alcoholic beverages for the residents of such municipalities and counties. A local jurisdiction may impose reasonable residency requirements on any applicant. However, if a local jurisdiction does impose such residency requirements, such local jurisdiction shall not be authorized to impose any residency requirement on any applicant who has been continuously licensed pursuant to § 57-3-204 for seven (7) consecutive years.
  3. An applicant may seek review of the denial of a certificate by instituting an action in the chancery court having jurisdiction over the municipality or county within sixty (60) days of the denial.
  4. A failure on the part of the issuing authority to grant or deny the certificate within sixty (60) days of the written application for such shall be deemed a granting of the certificate.
  5. The requirement imposed by this section to submit a certificate shall not be applicable to any applicant if:
    1. The authority of the county or municipality charged with the responsibility to issue the certificate required herein shall have failed to grant or deny the certificate within sixty (60) days after written application for such certificate is filed; or
    2. The applicant submits a final order of a court holding that the denial of the required certificate was unreasonable, as established by subsections (c) and (d).

Acts 1939, ch. 49, § 9a, as added by Acts 1949, ch. 284, § 5; C. Supp. 1950, § 6648.14a (Williams, § 6648.12a); Acts 1951, ch. 52, § 2; impl. am. Acts 1963, ch. 257, § 24; Acts 1976, ch. 438, § 2; impl. am. Acts 1978, ch. 934, §§ 7, 16, 36; T.C.A. (orig. ed.), § 57-121; Acts 1980, ch. 894, § 1; 1981, ch. 84, §§ 1, 2; 1993, ch. 451, §§ 1, 2; 2003, ch. 90, § 2; 2015, ch. 269, § 2; 2017, ch. 357, § 1; 2018, ch. 783, § 12; 2019, ch. 136, § 4.

Compiler's Notes. Acts 2003, ch. 90, § 2 directed the code commission to change all references from “county executive” to “county mayor” and to include all such changes in supplements and replacement volumes for the Tennessee Code Annotated.

Acts 2018, ch. 783, § 14 provided that sections 7 through 12 of the act shall be repealed on July 1, 2021, and the provisions of this section and §§57-3-204 and57-3-212 as they existed prior to being amended by Sections 7 through 12 of the act shall be reinstated.

Amendments. The 2018 amendment, effective until July 1, 2021, added (b)(1)(D).

The 2019 amendment added (b)(1)(E).

Effective Dates. Acts 2018, ch. 783, § 14. April 20, 2018.

Acts 2019, ch. 136, § 6. August 1, 2019.

Textbooks. Tennessee Jurisprudence, 16 Tenn. Juris., Intoxicating Liquors, §§ 6, 8.

NOTES TO DECISIONS

1. Constitutionality.

State statutes and ordinance of the Metropolitan Government of Nashville and Davidson County prohibiting retail sale of packaged liquor in the general services district while permitting its sale in the urban services district were reasonable and did not violate equal protection clause. Templeton v. Metropolitan Government of Nashville & Davidson County, 650 S.W.2d 743, 1983 Tenn. App. LEXIS 699 (Tenn. Ct. App. 1983).

2. Purpose.

Decisions of the supreme court prior to the enactment of this section were to the effect that the certificate of good moral character to be issued by local authorities was a condition precedent to the issuance of a license by the commission, and evidently this section was enacted to meet these decisions. Boyd v. Burmaster, 193 Tenn. 338, 246 S.W.2d 36, 1952 Tenn. LEXIS 296 (1952).

3. Property Rights.

A person has no property right in the privilege of sale of intoxicating liquors. Safier v. Atkins, 199 Tenn. 574, 288 S.W.2d 441, 1956 Tenn. LEXIS 355 (1956), overruled in part, Chattanooga v. Tennessee Alcoholic Beverage Com., 525 S.W.2d 470, 1975 Tenn. LEXIS 658 (Tenn. 1975).

4. Applicant Requirements.

Prior misconduct involving liquor is an accepted reason for refusing to certify that an applicant will not violate liquor laws in the future, but such misconduct need not result in a formal conviction to make it a valid consideration. SPE, Inc. v. Metropolitan Government of Nashville & Davidson County, 817 S.W.2d 330, 1991 Tenn. App. LEXIS 456 (Tenn. Ct. App. 1991).

5. Denial.

Plaintiff's only means of obtaining review over city's denial of plaintiff's application for a certificate of compliance was by instituting an action in the chancery court within (60) days of the denial as required by T.C.A. §57-3-208(d). Johnson v. Alcoholic Beverage Com., 844 S.W.2d 182, 1992 Tenn. App. LEXIS 686 (Tenn. Ct. App. 1992).

Alcoholic beverage commission did not act illegally, arbitrarily, or capriciously in refusing to renew liquor license. Johnson v. Alcoholic Beverage Com., 844 S.W.2d 182, 1992 Tenn. App. LEXIS 686 (Tenn. Ct. App. 1992).

6. Authority of Local Officials.

Local commissioners of civil district had no more authority than various municipalities of the state, and where they acted illegally in denying application for certificate of good moral character, commission had power to review their action and order issuance of liquor license to applicant. Boyd v. Burmaster, 193 Tenn. 338, 246 S.W.2d 36, 1952 Tenn. LEXIS 296 (1952).

Issuance of certificate of good moral character by local officials in order for a person to operate a retail liquor store is advisory only to the alcoholic beverage commission. Chattanooga v. Tennessee Alcoholic Beverage Com., 525 S.W.2d 470, 1975 Tenn. LEXIS 658 (Tenn. 1975).

7. Effect of Municipal Regulations.

Applicant of retail liquor license was not entitled to issuance of certificate of good moral character for sale of liquor contrary to valid municipal ordinance regulating places of sale of liquor even though he was entitled to such certificate from standpoint of character. Safier v. Atkins, 199 Tenn. 574, 288 S.W.2d 441, 1956 Tenn. LEXIS 355 (1956), overruled in part, Chattanooga v. Tennessee Alcoholic Beverage Com., 525 S.W.2d 470, 1975 Tenn. LEXIS 658 (Tenn. 1975).

Where municipal officials, as their prime reasons for refusing to grant certificates, asserted the ordinance in question, it was a proper quasi-judicial function for the commission to determine whether or not the ordinance was in conflict with state statute on identically the same subject matter. Lakewood v. Tennessee Alcoholic Beverage Com., 219 Tenn. 510, 410 S.W.2d 897, 1967 Tenn. LEXIS 452 (1967).

8. —Mandamus Against Local Officials.

Applicant for retail liquor license may not by mandamus or otherwise compel municipal authorities to issue certificate of good moral character to operate his business at a place of his own selection even though he may be entitled to it from a standpoint of moral fitness. Safier v. Atkins, 199 Tenn. 574, 288 S.W.2d 441, 1956 Tenn. LEXIS 355 (1956), overruled in part, Chattanooga v. Tennessee Alcoholic Beverage Com., 525 S.W.2d 470, 1975 Tenn. LEXIS 658 (Tenn. 1975).

9. —Effect as to State Regulatory Body.

The commission cannot be compelled to issue license after refusal of certificate by local authorities in absence of evidence that such local authorities have acted arbitrarily and unlawfully in disapproving it. Safier v. Atkins, 199 Tenn. 574, 288 S.W.2d 441, 1956 Tenn. LEXIS 355 (1956), overruled in part, Chattanooga v. Tennessee Alcoholic Beverage Com., 525 S.W.2d 470, 1975 Tenn. LEXIS 658 (Tenn. 1975).

10. Authority of Commission.

An independent investigation by the commission of the distances of proposed locations from schools and churches is authorized by this section. Lakewood v. Tennessee Alcoholic Beverage Com., 219 Tenn. 510, 410 S.W.2d 897, 1967 Tenn. LEXIS 452 (1967).

11. Hearing Before Commission.

Where applicant for retail liquor license was refused a certificate of good moral character by city officials in 1952 and city officials failed to appear at hearing on the matter before the commission or to present any evidence or reason for refusing the certificate although they were duly notified, and license for the year 1953 was then issued to applicant, city officials were prevented by the doctrine of res judicata from presenting evidence as to matters that allegedly occurred in 1952 at hearing in 1954 before the commission on the moral character of applicant. Polsky v. Atkins, 197 Tenn. 201, 270 S.W.2d 497, 1954 Tenn. LEXIS 468 (1954).

12. —Review by Court.

The court will not substitute its judgment for that of the commission in determining whether the license should issue unless the commission acts arbitrarily and without regard for its duty. Safier v. Atkins, 199 Tenn. 574, 288 S.W.2d 441, 1956 Tenn. LEXIS 355 (1956), overruled in part, Chattanooga v. Tennessee Alcoholic Beverage Com., 525 S.W.2d 470, 1975 Tenn. LEXIS 658 (Tenn. 1975).

Decisions Under Prior Law

1. Nature of Certificate. 2. Matters Considered in Issuance of Certificate. 3. Mandamus Against Local Officials.

1. Nature of Certificate.

The certificate prescribed by former provisions of Acts 1939, ch. 49, § 8, was not merely a certificate of good moral character but also a certificate that in the opinion of the officer signing it the applicant will refrain from a violation of the statutes governing traffic in alcoholic beverages. State ex rel. Allen v. Beasley, 182 Tenn. 519, 188 S.W.2d 332, 1945 Tenn. LEXIS 247 (1945).

The certificate of the approval of the local authority was a condition precedent to the issue of the license by the commission. State ex rel. Park v. Beasley, 182 Tenn. 523, 188 S.W.2d 333, 1945 Tenn. LEXIS 248 (1945); State ex rel. Harris v. Beasley, 182 Tenn. 529, 188 S.W.2d 336, 1945 Tenn. LEXIS 249 (1945).

2. Matters Considered in Issuance of Certificate.

Certificate was not only dependent on good moral character of applicant but also freedom from past violation of liquor laws. State ex rel. Allen v. Beasley, 182 Tenn. 519, 188 S.W.2d 332, 1945 Tenn. LEXIS 247 (1945).

Issuance of the certificate provided for under former provisions of Acts 1939, ch. 49, § 8, was a matter of official discretion, and a refusal based on personal habits of petitioner and past violations of regulations and law was not an abuse of discretion. State ex rel. Park v. Beasley, 182 Tenn. 523, 188 S.W.2d 333, 1945 Tenn. LEXIS 248 (1945).

The former provisions of Acts 1939, ch. 49, § 8, imposed the duty upon local officials to consider, not only the character of the nominal applicant, but also the moral character, history and reasonably to be anticipated conduct of his past and avowedly prospective authorized agent in sole actual charge and conduct of the liquor business proposed to be transacted. State ex rel. Harris v. Beasley, 182 Tenn. 529, 188 S.W.2d 336, 1945 Tenn. LEXIS 249 (1945).

Where wife had operated liquor store prior to application for certificate in name of husband who was absent from the county and evidence showed that wife's prior operation of the store had been characterized by repeated violations of the liquor laws refusal of the certificate was proper. State ex rel. Harris v. Beasley, 182 Tenn. 529, 188 S.W.2d 336, 1945 Tenn. LEXIS 249 (1945).

3. Mandamus Against Local Officials.

Mandamus would not lie against local authorities for refusal to issue certificate if refusal was based on reasonable grounds and not arbitrary. State ex rel. Allen v. Beasley, 182 Tenn. 519, 188 S.W.2d 332, 1945 Tenn. LEXIS 247 (1945); State ex rel. Park v. Beasley, 182 Tenn. 523, 188 S.W.2d 333, 1945 Tenn. LEXIS 248 (1945).

Under former provisions of Acts 1939, ch. 49, § 8, the only method of review of refusal of local officials to issue certificate was by mandamus. State ex rel. Park v. Beasley, 182 Tenn. 523, 188 S.W.2d 333, 1945 Tenn. LEXIS 248 (1945).

57-3-208. Certificate required — Contents — Exceptions. [Effective on July 1, 2021. See the version effective until July 1, 2021.]

  1. As a condition precedent to the issuance of a license under § 57-3-204, every applicant for a license under that section shall submit with the application to the commission a certificate signed by the county mayor or chair of the county commission in which the licensed premises are to be located if outside the corporate limits of a municipality or, if within a municipality, from the mayor or a majority of the commission, city council, or legislative body of the municipality, by whatsoever name designated, or if the municipality has no mayor, from the highest executive of the municipality.
    1. The certificate must state:
      1. That the applicant or applicants who are to be in actual charge of the business have not been convicted of a felony within a ten-year period immediately preceding the date of application and, if a corporation, that the executive officers or those in control have not been convicted of a felony within a ten-year period immediately preceding the date of the application;
      2. That the applicant or applicants have secured a location for the business which complies with all restrictions of any local law, ordinance, or resolution, duly adopted by the local jurisdiction, as to the location of the business;
      3. That the applicant or applicants have complied with any local law, ordinance or resolution duly adopted by the local authorities regulating the number of retail licenses to be issued within the jurisdiction;
      4. [Expired effective July 1, 2021. See the Compiler's Notes.]
      5. The certificate remains valid unless there is a change of ownership or location. If either of these events occurs, a new certificate must be obtained prior to renewal.
    2. Each applicant or officer identified in subdivision (b)(1)(A) must obtain and submit with the certificate a local and national criminal history record obtained from a third party using a multistate criminal records locator or other similar commercial nationwide database with validation. A criminal history record that indicates that the applicant or officer has not been convicted of a felony within the immediately preceding ten-year period serves as proof satisfactory that the applicant or officer has complied with subdivision (b)(1)(A).
  2. Municipalities and counties are hereby authorized to limit the location of retail liquor stores and the number of licenses issued within their jurisdictions. No local law, ordinance or resolution may limit the location and number of licenses authorized under § 57-3-204, so as to unreasonably restrict the availability of alcoholic beverages for the residents of such municipalities and counties. A local jurisdiction may impose reasonable residency requirements on any applicant. However, if a local jurisdiction does impose such residency requirements, such local jurisdiction shall not be authorized to impose any residency requirement on any applicant who has been continuously licensed pursuant to § 57-3-204 for seven (7) consecutive years.
  3. An applicant may seek review of the denial of a certificate by instituting an action in the chancery court having jurisdiction over the municipality or county within sixty (60) days of the denial.
  4. A failure on the part of the issuing authority to grant or deny the certificate within sixty (60) days of the written application for such shall be deemed a granting of the certificate.
  5. The requirement imposed by this section to submit a certificate shall not be applicable to any applicant if:
    1. The authority of the county or municipality charged with the responsibility to issue the certificate required herein shall have failed to grant or deny the certificate within sixty (60) days after written application for such certificate is filed; or
    2. The applicant submits a final order of a court holding that the denial of the required certificate was unreasonable, as established by subsections (c) and (d).

Acts 1939, ch. 49, § 9a, as added by Acts 1949, ch. 284, § 5; C. Supp. 1950, § 6648.14a (Williams, § 6648.12a); Acts 1951, ch. 52, § 2; impl. am. Acts 1963, ch. 257, § 24; Acts 1976, ch. 438, § 2; impl. am. Acts 1978, ch. 934, §§ 7, 16, 36; T.C.A. (orig. ed.), § 57-121; Acts 1980, ch. 894, § 1; 1981, ch. 84, §§ 1, 2; 1993, ch. 451, §§ 1, 2; 2003, ch. 90, § 2; 2015, ch. 269, § 2; 2017, ch. 357, § 1; 2018, ch. 783, § 12;  2019, ch. 136, § 4.

Compiler's Notes. Acts 2003, ch. 90, § 2 directed the code commission to change all references from “county executive” to “county mayor” and to include all such changes in supplements and replacement volumes for the Tennessee Code Annotated.

Acts 2018, ch. 783, § 14 provided that sections 7 through 12 of the act shall be repealed on July 1, 2021, and the provisions of this section and §§57-3-204 and57-3-212 as they existed prior to being amended by Sections 7 through 12 of the act shall be reinstated.

Amendments. The 2018 amendment, effective until July 1, 2021, added (b)(1)(D) which read: “For any applicant or applicants acquiring the right to purchase from an existing licensee and transferring the license to another location, that the new location is not within one thousand five hundred feet (1,500') of another location engaged in the retail sale of alcoholic spirituous beverages and is located within the same jurisdiction wherein the transferor premises was located.”

The 2019 amendment added (b)(1)(E).

Effective Dates. Acts 2018, ch. 783, § 14. April 20, 2018.

Acts 2019, ch. 136, § 6. August 1, 2019.

Textbooks. Tennessee Jurisprudence, 16 Tenn. Juris., Intoxicating Liquors, §§ 6, 8.

NOTES TO DECISIONS

1. Constitutionality.

State statutes and ordinance of the Metropolitan Government of Nashville and Davidson County prohibiting retail sale of packaged liquor in the general services district while permitting its sale in the urban services district were reasonable and did not violate equal protection clause. Templeton v. Metropolitan Government of Nashville & Davidson County, 650 S.W.2d 743, 1983 Tenn. App. LEXIS 699 (Tenn. Ct. App. 1983).

2. Purpose.

Decisions of the supreme court prior to the enactment of this section were to the effect that the certificate of good moral character to be issued by local authorities was a condition precedent to the issuance of a license by the commission, and evidently this section was enacted to meet these decisions. Boyd v. Burmaster, 193 Tenn. 338, 246 S.W.2d 36, 1952 Tenn. LEXIS 296 (1952).

3. Property Rights.

A person has no property right in the privilege of sale of intoxicating liquors. Safier v. Atkins, 199 Tenn. 574, 288 S.W.2d 441, 1956 Tenn. LEXIS 355 (1956), overruled in part, Chattanooga v. Tennessee Alcoholic Beverage Com., 525 S.W.2d 470, 1975 Tenn. LEXIS 658 (Tenn. 1975).

4. Applicant Requirements.

Prior misconduct involving liquor is an accepted reason for refusing to certify that an applicant will not violate liquor laws in the future, but such misconduct need not result in a formal conviction to make it a valid consideration. SPE, Inc. v. Metropolitan Government of Nashville & Davidson County, 817 S.W.2d 330, 1991 Tenn. App. LEXIS 456 (Tenn. Ct. App. 1991).

5. Denial.

Plaintiff's only means of obtaining review over city's denial of plaintiff's application for a certificate of compliance was by instituting an action in the chancery court within (60) days of the denial as required by T.C.A. §57-3-208(d). Johnson v. Alcoholic Beverage Com., 844 S.W.2d 182, 1992 Tenn. App. LEXIS 686 (Tenn. Ct. App. 1992).

Alcoholic beverage commission did not act illegally, arbitrarily, or capriciously in refusing to renew liquor license. Johnson v. Alcoholic Beverage Com., 844 S.W.2d 182, 1992 Tenn. App. LEXIS 686 (Tenn. Ct. App. 1992).

6. Authority of Local Officials.

Local commissioners of civil district had no more authority than various municipalities of the state, and where they acted illegally in denying application for certificate of good moral character, commission had power to review their action and order issuance of liquor license to applicant. Boyd v. Burmaster, 193 Tenn. 338, 246 S.W.2d 36, 1952 Tenn. LEXIS 296 (1952).

Issuance of certificate of good moral character by local officials in order for a person to operate a retail liquor store is advisory only to the alcoholic beverage commission. Chattanooga v. Tennessee Alcoholic Beverage Com., 525 S.W.2d 470, 1975 Tenn. LEXIS 658 (Tenn. 1975).

7. Effect of Municipal Regulations.

Applicant of retail liquor license was not entitled to issuance of certificate of good moral character for sale of liquor contrary to valid municipal ordinance regulating places of sale of liquor even though he was entitled to such certificate from standpoint of character. Safier v. Atkins, 199 Tenn. 574, 288 S.W.2d 441, 1956 Tenn. LEXIS 355 (1956), overruled in part, Chattanooga v. Tennessee Alcoholic Beverage Com., 525 S.W.2d 470, 1975 Tenn. LEXIS 658 (Tenn. 1975).

Where municipal officials, as their prime reasons for refusing to grant certificates, asserted the ordinance in question, it was a proper quasi-judicial function for the commission to determine whether or not the ordinance was in conflict with state statute on identically the same subject matter. Lakewood v. Tennessee Alcoholic Beverage Com., 219 Tenn. 510, 410 S.W.2d 897, 1967 Tenn. LEXIS 452 (1967).

8. —Mandamus Against Local Officials.

Applicant for retail liquor license may not by mandamus or otherwise compel municipal authorities to issue certificate of good moral character to operate his business at a place of his own selection even though he may be entitled to it from a standpoint of moral fitness. Safier v. Atkins, 199 Tenn. 574, 288 S.W.2d 441, 1956 Tenn. LEXIS 355 (1956), overruled in part, Chattanooga v. Tennessee Alcoholic Beverage Com., 525 S.W.2d 470, 1975 Tenn. LEXIS 658 (Tenn. 1975).

9. —Effect as to State Regulatory Body.

The commission cannot be compelled to issue license after refusal of certificate by local authorities in absence of evidence that such local authorities have acted arbitrarily and unlawfully in disapproving it. Safier v. Atkins, 199 Tenn. 574, 288 S.W.2d 441, 1956 Tenn. LEXIS 355 (1956), overruled in part, Chattanooga v. Tennessee Alcoholic Beverage Com., 525 S.W.2d 470, 1975 Tenn. LEXIS 658 (Tenn. 1975).

10. Authority of Commission.

An independent investigation by the commission of the distances of proposed locations from schools and churches is authorized by this section. Lakewood v. Tennessee Alcoholic Beverage Com., 219 Tenn. 510, 410 S.W.2d 897, 1967 Tenn. LEXIS 452 (1967).

11. Hearing Before Commission.

Where applicant for retail liquor license was refused a certificate of good moral character by city officials in 1952 and city officials failed to appear at hearing on the matter before the commission or to present any evidence or reason for refusing the certificate although they were duly notified, and license for the year 1953 was then issued to applicant, city officials were prevented by the doctrine of res judicata from presenting evidence as to matters that allegedly occurred in 1952 at hearing in 1954 before the commission on the moral character of applicant. Polsky v. Atkins, 197 Tenn. 201, 270 S.W.2d 497, 1954 Tenn. LEXIS 468 (1954).

12. —Review by Court.

The court will not substitute its judgment for that of the commission in determining whether the license should issue unless the commission acts arbitrarily and without regard for its duty. Safier v. Atkins, 199 Tenn. 574, 288 S.W.2d 441, 1956 Tenn. LEXIS 355 (1956), overruled in part, Chattanooga v. Tennessee Alcoholic Beverage Com., 525 S.W.2d 470, 1975 Tenn. LEXIS 658 (Tenn. 1975).

Decisions Under Prior Law

1. Nature of Certificate. 2. Matters Considered in Issuance of Certificate. 3. Mandamus Against Local Officials.

1. Nature of Certificate.

The certificate prescribed by former provisions of Acts 1939, ch. 49, § 8, was not merely a certificate of good moral character but also a certificate that in the opinion of the officer signing it the applicant will refrain from a violation of the statutes governing traffic in alcoholic beverages. State ex rel. Allen v. Beasley, 182 Tenn. 519, 188 S.W.2d 332, 1945 Tenn. LEXIS 247 (1945).

The certificate of the approval of the local authority was a condition precedent to the issue of the license by the commission. State ex rel. Park v. Beasley, 182 Tenn. 523, 188 S.W.2d 333, 1945 Tenn. LEXIS 248 (1945); State ex rel. Harris v. Beasley, 182 Tenn. 529, 188 S.W.2d 336, 1945 Tenn. LEXIS 249 (1945).

2. Matters Considered in Issuance of Certificate.

Certificate was not only dependent on good moral character of applicant but also freedom from past violation of liquor laws. State ex rel. Allen v. Beasley, 182 Tenn. 519, 188 S.W.2d 332, 1945 Tenn. LEXIS 247 (1945).

Issuance of the certificate provided for under former provisions of Acts 1939, ch. 49, § 8, was a matter of official discretion, and a refusal based on personal habits of petitioner and past violations of regulations and law was not an abuse of discretion. State ex rel. Park v. Beasley, 182 Tenn. 523, 188 S.W.2d 333, 1945 Tenn. LEXIS 248 (1945).

The former provisions of Acts 1939, ch. 49, § 8, imposed the duty upon local officials to consider, not only the character of the nominal applicant, but also the moral character, history and reasonably to be anticipated conduct of his past and avowedly prospective authorized agent in sole actual charge and conduct of the liquor business proposed to be transacted. State ex rel. Harris v. Beasley, 182 Tenn. 529, 188 S.W.2d 336, 1945 Tenn. LEXIS 249 (1945).

Where wife had operated liquor store prior to application for certificate in name of husband who was absent from the county and evidence showed that wife's prior operation of the store had been characterized by repeated violations of the liquor laws refusal of the certificate was proper. State ex rel. Harris v. Beasley, 182 Tenn. 529, 188 S.W.2d 336, 1945 Tenn. LEXIS 249 (1945).

3. Mandamus Against Local Officials.

Mandamus would not lie against local authorities for refusal to issue certificate if refusal was based on reasonable grounds and not arbitrary. State ex rel. Allen v. Beasley, 182 Tenn. 519, 188 S.W.2d 332, 1945 Tenn. LEXIS 247 (1945); State ex rel. Park v. Beasley, 182 Tenn. 523, 188 S.W.2d 333, 1945 Tenn. LEXIS 248 (1945).

Under former provisions of Acts 1939, ch. 49, § 8, the only method of review of refusal of local officials to issue certificate was by mandamus. State ex rel. Park v. Beasley, 182 Tenn. 523, 188 S.W.2d 333, 1945 Tenn. LEXIS 248 (1945).

57-3-209. Collectors of containers that hold alcoholic beverages.

  1. For purposes of this section:
    1. “Alcoholic beverage collector” means an individual who collects commemorative bottles containing alcoholic beverages, wine or distilled spirits, where the individual displays the collection in a location available to the public, either by appointment or on a regular schedule, and who sells collectible alcoholic beverages for the purpose of collection, without the intent that the collectible alcoholic beverage be consumed; and
    2. “Collectible alcoholic beverage” means an alcoholic beverage, distilled spirit or wine in a unique or commemorative bottle, decanter or other container, not generally available at a licensee holding a permit issued pursuant to § 57-3-204.
  2. Any individual qualifying as an alcoholic beverage collector may apply to the commission for a license as an alcoholic beverage collector, authorizing that individual to purchase wine, distilled spirits and other alcoholic beverages from any entity authorized to sell such products and shall be authorized to sell, in a face to face transaction only, collectible alcoholic beverages, as defined in this section, to any person twenty-one (21) years of age or older. The license may be issued notwithstanding the requirements of § 57-3-106.
  3. No license shall be issued under this section to any person who has an interest, direct or indirect, in any business holding a license issued under chapter 2 of this title or pursuant to § 57-3-202, § 57-3-203, § 57-3-204, § 57-3-207, § 57-3-218 or § 57-4-101.
  4. Any sale of any alcoholic beverage, wine or distilled spirit by an individual licensed under this section shall be presumed not to be a sale of a collectible alcoholic beverage if the price of the sale is not at least three hundred percent (300%) of the price of the same brand, vintage, quantity and type of alcoholic beverage, distilled spirit or wine as is available at any licensee holding a license pursuant to § 57-3-204. The alcoholic beverage collector shall have the burden of proving that any sale authorized under this section satisfies the requirements of this section.
    1. An alcoholic beverage collector shall be responsible for remitting all sales taxes due resulting from any sale by the collector under this section. Where the collector cannot demonstrate that the collectible alcoholic beverage was purchased from a licensee holding a license pursuant to § 57-3-204, the collector shall also pay the taxes imposed pursuant to § 57-3-302.
    2. The taxes levied on sales made by an alcoholic beverage collector as authorized by this section shall become due and payable on the first day of each month following the month when the sales occur and shall become delinquent if not paid on or before the twentieth day of each following month. For the purpose of ascertaining the amount of tax payable, it is the duty of each alcoholic beverage collector to transmit to the commissioner of revenue a return on forms prescribed by the commissioner.
  5. Each applicant for an alcoholic beverage collector's license under this section shall pay to the commission a one-time, nonrefundable fee in the amount of three hundred dollars ($300) when the application is submitted for review. An alcoholic beverage collector's license under this section shall not be issued until the applicant has paid to the commission the annual license fee of one thousand dollars ($1,000).

Acts 2009, ch. 484, § 1; 2011, ch. 451, § 6.

Compiler's Notes. Former §57-3-209 (Acts 1939, ch. 49, § 14; C. Supp. 1950, § 6648.17; T.C.A. (orig. ed.), § 57-122), concerning bonds of licensees, was repealed by Acts 1991, ch. 514, § 1.

57-3-210. Restrictions on license holders — Employees — Penalties.

  1. The license fee for every license issued under this chapter shall be payable by the person making application for such license and to whom it is issued, and no other person shall pay for any license issued under such sections. In addition to all other penalties provided in this chapter, a violation of this section shall authorize and require the revocation of the license, the fee for which was paid by another, and also the revocation of the license, if any, of the person so paying for the license of another.
    1. No wholesaler's or retailer's license shall be issued to a person who is a holder of a public office, either appointive or elective, or who is a public employee, either national, state, city or county. It is unlawful for any such person to have any interest in such wholesale or retail business, directly or indirectly, either proprietary or by means of any loan, mortgage, or lien, or to participate in the profits of any such business;
    2. The foregoing shall not apply to uncompensated appointees to municipal boards and commissions where the boards or commissions on which such appointees serve have no duty to vote for, overlook, or in any manner superintend the sale of alcoholic beverages.
  2. No wholesaler or retailer shall be a person who has been convicted of a felony involving moral turpitude, within ten (10) years prior to the time the person or the concern with which the person is connected shall receive a license; provided, however, that this subsection (c) shall not apply to any person who has been so convicted, but whose rights of citizenship have been restored or judgment of infamy has been removed by a court of competent jurisdiction; and in the case of any such conviction occurring after a license has been issued and received, the license shall immediately be revoked, if such convicted felon be an individual licensee, and if not, the partnership, corporation or association with which the felon is connected shall immediately discharge the felon.
  3. None of the licenses or permits provided by this chapter, or which may be issued thereunder, shall under any condition be issued to any person who, within ten (10) years preceding application for such license or permit shall have been convicted of any offense under this title or of any similar law of any other state or of the United States prohibiting or regulating the sale, possession, transportation, storing, manufacturing, or otherwise handling intoxicating liquors or who has, during such period, been engaged in business alone or with others, in violation of any of such laws or rules and regulations promulgated pursuant thereto, as they existed on March 2, 1939, or as they existed or may exist thereafter.
  4. No manufacturer, brewer or wholesaler shall have any interest in the business or building containing licensed premises of any other person having a license under this chapter, or in the fixtures of any such person.
    1. It is unlawful for any person to have ownership in, or participate, in, either directly or indirectly, the profits of any wholesale or retail business licensed under this chapter, unless the interest in such business and the nature, extent and character thereof shall appear on the application; or if the interest is acquired after the issuance of a license, unless it shall be fully disclosed to the commission and approved by it. Where such interest is owned by such person on or before the application for any license, the burden shall be upon such person to see that this section is fully complied with, whether the person personally signs or prepares the application, or whether the same is prepared by another; or if such interest is acquired after the issuance of the license, the burden of such disclosure of the acquisition of such interest shall be upon both the seller and the purchaser.
    2. A violation of this subsection (f) is a Class C misdemeanor.
  5. No person shall be employed in the storage, sale or distribution of alcoholic beverages except a citizen of the United States.
  6. No manufacturer, wholesaler or retailer, or any employee thereof, engaged in the physical manufacture, storage, sale or distribution of alcoholic beverages shall be a person under eighteen (18) years of age, and it is unlawful for any wholesaler or retailer to employ any person under eighteen (18) years of age for the physical storage, sale, or distribution of alcoholic beverages, or to permit any such person under such age on its place of business to engage in the manufacture, storage, sale or distribution of alcoholic beverages.
  7. No manufacturer, wholesaler or retailer shall employ in the manufacture, storage, sale or distribution of alcoholic beverages, any person who, within ten (10) years prior to the date of employment, shall have been convicted of a felony involving moral turpitude, and in case an employee should be so convicted, the employee shall immediately be discharged; provided, however, that this subsection (i) shall not apply to any person who has been so convicted, but whose rights of citizenship have been restored, or judgment of infamy has been removed by a court of competent jurisdiction.
  8. This section shall be in addition to any other restriction or condition which may be contained elsewhere in this chapter or chapters 1 and 9 of this title.

Acts 1939, ch. 49, §§ 5, 12; 1945, ch. 167, § 7; 1949, ch. 284, § 7; C. Supp. 1950, §§ 6648.15, 6648.16 (Williams, §§ 6648.8, 6648.14, 6648.15); Acts 1963, ch. 257, § 26; 1971, ch. 162, § 2; 1971, ch. 169, § 1; impl. am. Acts 1979, ch. 413, §§ 3, 4; T.C.A. (orig. ed.), § 57-123; Acts 1989, ch. 591, § 113; 2006, ch. 616, § 2.

Sentencing Reform Notes.

A penalty provided in this section was changed to a Class C misdemeanor on November 1, 1989. See Acts 1989, ch. 591, § 113, and §§40-35-110,40-35-111.

Cross-References. Penalty for Class C misdemeanor, §40-35-111.

Textbooks. Tennessee Jurisprudence, 16 Tenn. Juris., Intoxicating Liquors, §§ 11, 15.

Law Reviews.

Constitutional Protection of Aliens, 40 Tenn. L. Rev. 235.

Attorney General Opinions. Restriction on licensee holding public office deemed constitutional, OAG 94-145 (12/29/94).

NOTES TO DECISIONS

1. Interest in Other Business.

Evidence that person holding 50 percent of stock in wholesale liquor business made loan to son who bought into retail liquor store and to owner of retail liquor store justified revocation of wholesale license on ground that licensee had interest in retail liquor business. Bluff City Beverage Co. v. MacFarland, 208 Tenn. 340, 345 S.W.2d 896, 1961 Tenn. LEXIS 292 (1961).

2. Undisclosed Coownership.

Where coowner of a liquor store did not disclose fact of coownership on application for liquor license to alcoholic beverage commission, and application represented that store was a sole proprietorship, coownership was illegal under T.C.A. §57-3-210(f). Bubis v. Blanton, 885 F.2d 317, 1989 U.S. App. LEXIS 13732 (6th Cir. Tenn. 1989).

57-3-211. Display of license, rules and regulations.

Any person granted a license to carry on any of the businesses or undertakings contemplated by this chapter shall, before being qualified to do business, display and post, and keep displayed and posted, in the most conspicuous place on the premises, such license, and shall promptly procure and keep at the place of business a copy of the rules and regulations promulgated by the commission.

Acts 1939, ch. 49, § 14; C. Supp. 1950, § 6648.17; impl. am. Acts 1963, ch. 257, § 27; T.C.A. (orig. ed.), § 57-124.

57-3-212. Transfer of permits restricted. [Effective until July 1, 2021. See the version effective on July 1, 2021.]

  1. The holder of a license may not sell, assign, or transfer such license to any other person other than to a person that the commission has approved pursuant to § 57-3-204. Any license issued or approved for transfer shall be good and valid only for the twelve (12) months after the same was issued or approved for transfer by the commission. The license proposed to be transferred may be for the same location or, with commission approval, transferred from one (1) location to another location.
  2. Licensees who are serving in the military forces of the United States in time of war may appoint an agent to operate under the license of the licensee during the absence of the licensee. In such instances, the license shall continue to be carried and renewed in the name of the owner. The agent of the licensee shall conform to all the requirements of a licensee under this chapter, including the furnishing of a certificate as provided under § 57-3-208. No person who is ineligible to obtain a license under this chapter shall be eligible to serve as the agent of a licensee under this section.
  3. Except as expressly authorized, there shall be no transfer of any permit from the holder thereof to another, nor, except in special instances to be fixed by rule or regulation of the commission, any transfer thereof from one (1) location to another.

Acts 1939, ch. 49, §§ 5, 14; 1943, ch. 98, § 1; C. Supp. 1950, §§ 6648.16, 6648.17 (Williams, §§ 6648.8, 6648.17); impl. am. Acts 1963, ch. 257, § 28; T.C.A. (orig. ed.), § 57-125; Acts 1981, ch. 152, § 1; 2018, ch. 783, § 11.

Compiler's Notes. Acts 2018, ch. 783, § 14 provided that sections 7 through 12 of the act shall be repealed on July 1, 2021, and the provisions of this section and §§57-3-204 and57-3-208 as they existed prior to being amended by Sections 7 through 12 of the act shall be reinstated.

Amendments. The 2018 amendment, effective until July 1, 2021, rewrote (a) which read, “(a)  The holder of a license may not sell, assign or transfer such license to any other person, and such license shall be good and valid only for the twelve (12) months after the same was issued.”

Effective Dates. Acts 2018, ch. 783, § 14. April 20, 2018.

NOTES TO DECISIONS

1. Transfer of License to New Location.

There is no absolute right for the holder of a license at one prescribed location to transfer that license to another location. Metropolitan Government of Nashville & Davidson County v. Shacklett, 554 S.W.2d 601, 1977 Tenn. LEXIS 640 (Tenn. 1977).

57-3-212. Transfer of permits restricted. [Effective on July 1, 2021. See the version effective until July 1, 2021.]

  1. The holder of a license may not sell, assign or transfer such license to any other person, and such license shall be good and valid only for the twelve (12) months after the same was issued.
  2. Licensees who are serving in the military forces of the United States in time of war may appoint an agent to operate under the license of the licensee during the absence of the licensee. In such instances, the license shall continue to be carried and renewed in the name of the owner. The agent of the licensee shall conform to all the requirements of a licensee under this chapter, including the furnishing of a certificate as provided under § 57-3-208. No person who is ineligible to obtain a license under this chapter shall be eligible to serve as the agent of a licensee under this section.
  3. Except as expressly authorized, there shall be no transfer of any permit from the holder thereof to another, nor, except in special instances to be fixed by rule or regulation of the commission, any transfer thereof from one (1) location to another.

Acts 1939, ch. 49, §§ 5, 14; 1943, ch. 98, § 1; C. Supp. 1950, §§ 6648.16, 6648.17 (Williams, §§ 6648.8, 6648.17); impl. am. Acts 1963, ch. 257, § 28; T.C.A. (orig. ed.), § 57-125; Acts 1981, ch. 152, § 1; 2018, ch. 783, § 11.

Compiler's Notes. Acts 2018, ch. 783, § 14 provided that sections 7 through 12 of the act shall be repealed on July 1, 2021, and the provisions of this section and §§57-3-204 and57-3-208 as they existed prior to being amended by Sections 7 through 12 of the act shall be reinstated.

Amendments. The 2018 amendment, effective until July 1, 2021, rewrote (a) to read, “The holder of a license may not sell, assign, or transfer such license to any other person other than to a person that the commission has approved pursuant to §57-3-204. Any license issued or approved for transfer shall be good and valid only for the twelve (12) months after the same was issued or approved for transfer by the commission. The license proposed to be transferred may be for the same location or, with commission approval, transferred from one (1) location to another location.”

Effective Dates. Acts 2018, ch. 783, § 14. April 20, 2018.

NOTES TO DECISIONS

1. Transfer of License to New Location.

There is no absolute right for the holder of a license at one prescribed location to transfer that license to another location. Metropolitan Government of Nashville & Davidson County v. Shacklett, 554 S.W.2d 601, 1977 Tenn. LEXIS 640 (Tenn. 1977).

57-3-213. Expiration of licenses — Renewal.

  1. Each license shall expire twelve (12) months following the date of its issuance. The commission is authorized to issue renewal licenses for all qualified persons licensed as of July 1, 1981 for a period of time greater than three (3) months but less than a year so as to distribute expiration dates throughout the year, for the year following July 1, 1981 only. The license fee or the proportionate part thereof prescribed by this chapter shall be paid in advance at the time the application for renewal is made as provided by this chapter.
  2. Each license issued pursuant to this chapter may be renewed upon application therefor by the licensee. The renewal application shall be accompanied by the payment of the annual fee for such license. Each license shall automatically expire twelve (12) months from the date of its issuance unless the licensee has filed a renewal application and paid the annual license fee or privilege tax required by this title.
  3. The commission shall consider the application with all other evidence which it may obtain by investigation or otherwise in determining whether the license is to be renewed. The commission shall make such order, as the entire record justifies, granting or refusing the renewal application, and such order shall be effective from its date. If the license is not renewed, the applicant is entitled to the hearing and notice requirements as set out in § 57-3-214.
  4. [Deleted by 2019 amendment.]

Acts 1939, ch. 49, § 14; 1949, ch. 284, § 6; C. Supp. 1950, § 6648.17; Acts 1951, ch. 52, § 5; impl. am. Acts 1963, ch. 257, § 29; Acts 1976, ch. 438, § 1; T.C.A. (orig. ed.), § 57-126; Acts 1981, ch. 152, § 2; 1982, ch. 577, § 1; 1985, ch. 76, § 1; 2019, ch. 136, § 1.

Amendments. The 2019 amendment, effective August 1, 2019, deleted former (d) which read: “(d)  In addition to these requirements the application for license renewal shall be accompanied by a certificate as set forth in §57-3-208, which certificate shall be valid for two (2) years. A new certificate shall be required every other year, to be submitted with the application for renewal.”

Effective Dates. Acts 2019, ch. 136, § 6. August 1, 2019.

Textbooks. Tennessee Jurisprudence, 16 Tenn. Juris., Intoxicating Liquors, §§ 5, 6, 8, 22.

Law Reviews.

Local Government Law — 1956 Tennessee Survey (Joseph Martin, Jr.), 9 Vand. L. Rev. 1032.

NOTES TO DECISIONS

1. Granting of Licenses.

The granting of liquor licenses by the state does not preclude municipal authorities from making reasonable regulations as to sale or protect the holder from police regulations which are not unreasonable or oppressive. Safier v. Atkins, 199 Tenn. 574, 288 S.W.2d 441, 1956 Tenn. LEXIS 355 (1956), overruled in part, Chattanooga v. Tennessee Alcoholic Beverage Com., 525 S.W.2d 470, 1975 Tenn. LEXIS 658 (Tenn. 1975).

2. Power of Commission.

The commission has full authority under this section to determine if municipal officials acted arbitrarily in refusing certificate of good moral character. Safier v. Atkins, 199 Tenn. 574, 288 S.W.2d 441, 1956 Tenn. LEXIS 355 (1956), overruled in part, Chattanooga v. Tennessee Alcoholic Beverage Com., 525 S.W.2d 470, 1975 Tenn. LEXIS 658 (Tenn. 1975).

3. —Effect of Actions of Local Officials.

The commission cannot be compelled to issue license after refusal of certificate by local authorities in absence of evidence that such local authorities have acted arbitrarily and unlawfully in disapproving it. Safier v. Atkins, 199 Tenn. 574, 288 S.W.2d 441, 1956 Tenn. LEXIS 355 (1956), overruled in part, Chattanooga v. Tennessee Alcoholic Beverage Com., 525 S.W.2d 470, 1975 Tenn. LEXIS 658 (Tenn. 1975).

4. Review of Commission's Actions.

The court will not substitute its judgment for that of the commission in determining whether the license should issue unless the commission acts arbitrarily and without regard for its duty. Safier v. Atkins, 199 Tenn. 574, 288 S.W.2d 441, 1956 Tenn. LEXIS 355 (1956), overruled in part, Chattanooga v. Tennessee Alcoholic Beverage Com., 525 S.W.2d 470, 1975 Tenn. LEXIS 658 (Tenn. 1975).

57-3-214. Revocation, suspension or denial of license or permit.

  1. Whenever, under this chapter, the commission is authorized to revoke a license or permit issued by it, except in those cases where revocation is mandatory, it may, if, in its discretion, it feels that revocation of the license or permit is too drastic a penalty, suspend the license or permit, and the procedure for such suspension and the review of such suspension order shall be the same as that prescribed herein for revocation of licenses or permits issued under this chapter.
  2. If a revocation of license is being contemplated with respect to a retailer's license on premises owned by a person, firm or corporation not the licensee, a copy of the notice sent to the licensee shall also be sent to the owner at the address on record with the commission.
  3. The commission or other employee designated by the commission is empowered to subpoena witnesses and compel their attendance and the production of records, memoranda, papers and other documents at any hearing authorized under this section.
  4. At all hearings provided for herein, the commission shall provide a stenographer to take a stenographic record of the evidence adduced at such hearing. The applicant, licensee, permittee, or protestant shall be entitled to a copy of the stenographic record, upon application thereof, and upon paying the reasonable cost thereof to be fixed by the commission. The commission may require the applicant to bear the costs of any hearing required on the application including any fees to court reporter and preparation and copying of a transcript or stenographic record of such hearing. All such costs must be paid by the applicant before it may receive its license.
  5. No judge of any court shall have the authority to supersede, stay or enjoin any order of revocation of the commission issued pursuant to a hearing authorized under this section, but such order shall remain in full force and effect until the final decision by the supreme court except where the judgment of the circuit court is unappealed from and has become a final judgment.

Acts 1939, ch. 49, § 14; 1941, ch. 113, § 1; 1945, ch. 85, §§ 1, 2; 1949, ch. 284, § 8; C. Supp. 1950, § 6648.17; impl. am. Acts 1963, ch. 257, § 30; Acts 1970, ch. 469, § 1; 1977, ch. 461, § 2; T.C.A. (orig. ed.), § 57-127; Acts 1981, ch. 449, § 2; 1981, ch. 465, §§ 1-3; 1982, ch. 877, § 1; 1986, ch. 738, § 3.

Compiler's Notes. To the extent that they conflict or are inconsistent with the Uniform Administrative Procedures Act, compiled in title 4, ch. 5, the provisions in this section for judicial review of the commission's orders are superseded and repealed. Metropolitan Gov't v. Shacklett, 554 S.W.2d 601 (Tenn. 1977).

This section may be affected by T.R.A.P 24.

Cross-References. Gifts or bribes to commission members, mandatory revocation, §57-1-110.

Name on delinquent tax report three times in year, mandatory revocation, §57-1-207.

Textbooks. Tennessee Jurisprudence, 16 Tenn. Juris., Intoxicating Liquors, §§ 8, 9.

Law Reviews.

Methods of Judicial Review over Administrative Actions in Tennessee, 13 Mem. St. U.L. Rev. 657 (1984).

NOTES TO DECISIONS

1. Constitutionality.

Provision that no revocation order issued by the commission was to be superseded until final judgment by the supreme court did not violate Tenn. Const., art. VI, § 8, or art. VI, § 10. Terry v. Evans, 189 Tenn. 345, 225 S.W.2d 255, 1949 Tenn. LEXIS 436 (1949).

2. Revocation of License.

A license for a fixed period should not be withdrawn or canceled during the period unless there is fault on the part of the person holding the license. Wise v. McCanless, 183 Tenn. 107, 191 S.W.2d 169, 1945 Tenn. LEXIS 278 (1945).

Commission had discretionary authority to revoke licenses of retailers who were doing a wholesale business. Little v. MacFarland, 206 Tenn. 665, 337 S.W.2d 233, 1960 Tenn. LEXIS 416 (1960).

Action by commission to revoke licenses was not a criminal proceeding but was purely to show that holders of licenses had not complied with agreement with the state made through the commission. Little v. MacFarland, 206 Tenn. 665, 337 S.W.2d 233, 1960 Tenn. LEXIS 416 (1960).

In proceeding to revoke licenses of retailers for doing a wholesale business, commission could take into account the fact that none of the parties took the stand to refute, explain or amplify the evidence presented. Little v. MacFarland, 206 Tenn. 665, 337 S.W.2d 233, 1960 Tenn. LEXIS 416 (1960).

3. Review of Action of Commission.

Writ of certiorari to review action of commission only brought up question of whether it exceeded its authority or acted illegally, arbitrarily or fraudulently; and if material evidence supported its finding, such finding would be sustained by the court. Little v. MacFarland, 206 Tenn. 665, 337 S.W.2d 233, 1960 Tenn. LEXIS 416 (1960).

A case before the court pursuant to writ of certiorari raises only the questions of action beyond jurisdiction, or illegal, arbitrary or fraudulent actions. Chattanooga v. Tennessee Alcoholic Beverage Com., 525 S.W.2d 470, 1975 Tenn. LEXIS 658 (Tenn. 1975).

Cases may be brought directly to the chancery court for review in the first instance pursuant to the administrative procedures act. Metropolitan Government of Nashville & Davidson County v. Shacklett, 554 S.W.2d 601, 1977 Tenn. LEXIS 640 (Tenn. 1977).

Where applications for liquor licenses were considered by the alcoholic beverage commission after the effective date of the Uniform Administrative Procedures Act, that act superseded and repealed the provisions for judicial review of the commission's orders to the extent of any conflict or inconsistency in the two sets of statutory provisions. Metropolitan Government of Nashville & Davidson County v. Shacklett, 554 S.W.2d 601, 1977 Tenn. LEXIS 640 (Tenn. 1977).

57-3-215. New license after revocation.

  1. Where a license is revoked, no new license shall be issued to permit the sale of alcoholic beverages on the same premises until after the expiration of one (1) year from the date such revocation becomes final and effective.
  2. If the premises are owned by a person, firm or corporation not the licensee, the commission may, in its discretion, waive subsection (a) or reduce the time within which no new license may be granted with respect to the same premises.

Acts 1945, ch. 167, § 2; C. Supp. 1950, § 6648.16 (Williams, § 6648.8); Acts 1977, ch. 461, § 3; T.C.A. (orig. ed.), § 57-128.

57-3-216. Federal license as evidence of sales.

The possession of any federal license to sell alcoholic beverages defined in §57-3-101, without the corresponding requisite state license, shall in all cases be prima facie evidence that the holder of such federal license is selling alcoholic beverages in violation of the terms of this chapter.

Acts 1939, ch. 49, § 14; C. Supp. 1950, § 6648.17; T.C.A. (orig. ed.), § 57-129.

57-3-217. Winery direct shipper's license.

  1. Any person, firm or corporation that holds a federal basic permit pursuant to the Federal Alcohol Administration Act (27 U.S.C. § 201 et seq.), and is in the business of manufacturing, bottling or rectifying wine may apply to the commission for a winery direct shipper's license under this section. Applicants for a winery direct shipper's license shall submit to the commission a copy of the federal basic permit and a permit for the manufacturing, bottling, or rectification of wine from the state where such wine is produced.
  2. A winery direct shipper, meeting the requirements of this section, shall be authorized to make sales and delivery of wine, as defined in § 57-3-101, by common carrier to the citizens of this state over the age of twenty-one (21) who have purchased the wine directly from the winery direct shipper, subject to the limitations and requirements imposed by this section.
  3. As a condition to the issuance of a winery direct shipper's license as authorized in this section, an applicant for the license must satisfy the following conditions:
    1. Pay to the commission a one-time nonrefundable fee in the amount of three hundred dollars ($300) when the application is submitted for review. A winery direct shipper's license under this section shall not be issued until the applicant has paid to the commission the annual license fee of one hundred fifty dollars ($150);
    2. Execute a consent to jurisdiction and venue of all actions brought before the commission, any state agency or the courts of this state, such that any and all hearings, appeals and other matters relating to the license of the winery direct shipper shall be held in this state;
    3. Acknowledge, in writing, that it will contract only with common carriers that agree that any delivery of wine made in this state shall be by face-to-face delivery and that deliveries will only be made to individuals who demonstrate that the individuals are over twenty-one (21) years of age and the individuals sign upon receipt of the wine.
    1. No winery direct shipper may ship more than a total of nine (9) liters of wine to any individual during any calendar month nor shall the shipper ship more than twenty-seven (27) liters of wine to any individual in any calendar year.
    2. Any shipment of wine pursuant to this section shall be made only in containers that clearly indicate on the exterior of the container, visible to a person at least three feet (3') away, that the container “CONTAINS ALCOHOL: SIGNATURE OF PERSON AGE 21 OR OLDER REQUIRED FOR DELIVERY”.
    1. A winery direct shipper shall be responsible for remitting all sales taxes due resulting from any sale made under this section. In addition to all sales taxes imposed upon such sale, a winery direct shipper shall remit the gallonage tax as imposed by § 57-3-302.
    2. The taxes levied on sales made by a winery direct shipper as authorized by this section shall become due and payable on the first day of each month following the month during which the sales occur, and shall become delinquent if not paid on or before the twentieth day of each such following month. For the purpose of ascertaining the amount of tax due, it is the duty of any winery direct shipper licensed pursuant to this section to transmit to the commissioner of revenue appropriate returns on forms prescribed by the commissioner.
    3. Upon request of the commission or its designated agent, any winery direct shipper licensed pursuant to this section shall provide to the commission, under penalty of perjury, a list of any wine shipped to an address within this state, including the addressee.
    4. The commission may enforce the requirements of this section by administrative action, may suspend or revoke a winery direct shipper's license and may accept an offer in compromise in lieu of suspension.
    5. A winery direct shipper that is found to have violated this title, in addition to any fine imposed by the commission, shall reimburse the commission for all costs incurred in connection with the investigation and administrative action, including the out-of-pocket costs and reasonable personnel costs.
    6. No winery direct shipper may avoid liability under this section by subcontracting with a third party to perform its obligations required pursuant to this section.
  4. The commission and the department of revenue are authorized to promulgate rules and regulations that may be necessary to implement this section, in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5.
    1. It is an offense for a person who does not possess a winery direct shipper's license to ship wine to residents of this state.
    2. A violation of subdivision (g)(1) is a Class E felony, punishable by a fine only.
    1. Each common carrier that contracts with a winery direct shipper under this section for delivery of wine, beer, or other alcoholic beverages into this state shall prepare and file monthly with the department of revenue a report of known wine, beer, or other alcoholic beverage shipments containing the name of the common carrier making the report, the period of time covered by the report, the name and business address of the consignor, the name and address of each consignee, the weight of the package delivered to each consignee, a unique tracking number, and the date of delivery. Reports received by the department of revenue must be made available to the public pursuant to the open records law, compiled in title 10, chapter 7.
    2. Upon the request of the commissioner of revenue, any records supporting the report must be made available to the department of revenue within a reasonable time after the commissioner makes a written request for such records. Any records containing information relating to such reports must be retained and preserved for a period of two (2) years, unless destruction of the records prior to the end of such retention period is authorized in writing by the department of revenue. Such records must be open and available for inspection by the department of revenue upon written request. Reports must also be made available to any law enforcement agency or regulatory body of any local government in this state in which the common carrier making the report resides or does business.
    3. Any common carrier that willfully fails to make reports in accordance with this section or that violates any rules of the department of revenue for the administration and enforcement of this section is subject to a notification of violation. If a common carrier continually fails to make reports, the common carrier may be fined in an amount not to exceed five hundred dollars ($500) for each delivery not reported to the department of revenue. Unpaid fines assessed under this subdivision (h)(3) must be collected in accordance with title 67, chapter 1.
    4. This subsection (h) does not apply to common carriers regulated under 49 U.S.C. §§ 10101 et seq., or to rail trailer-on-flatcar/container-on-flatcar (TOFC/COFC) service, as defined in 49 CFR § 1090.1, or highway TOFC/COFC service provided by a rail carrier, either itself or jointly with a motor carrier, as part of continuous intermodal freight transportation, including, without limitation, any other TOFC/COFC transportation as defined under federal law.

Acts 2009, ch. 348, § 1; 2011, ch. 213, § 1; 2017, ch. 486, § 1; 2018, ch. 765, § 7; 2018, ch. 933, § 3; 2019, ch. 263, § 1.

Compiler's Notes. For the Preamble to the act regarding allowing an in-state or out-of-state entity to ship wine directly to consumers age twenty-one years or older in this state for personal use, please refer to Acts 2009, ch. 348.

Amendments. The 2017 amendment, effective July 1, 2018, added (h).

The 2018 amendment by ch. 765 added the second sentence in (a).

The 2018 amendment by ch. 933, in the first sentence of (h)(1), inserted “, beer, or other alcoholic beverages” and substituted “wine, beer, or other alcoholic beverage shipments” for “wine shipments”.

The 2019 amendment substituted “winery direct shipper” for “direct shipper” and “winery direct shipper’s” for “direct shipper’s” throughout the section.

Effective Dates. Acts 2017, ch. 486, § 2. July 1, 2018.

Acts 2018, ch. 765, § 8. July 1, 2018.

Acts 2018, ch. 933, § 7. July 1, 2018.

Acts 2019, ch. 263, § 2. April 30, 2019.

Cross-References. Penalty for a Class E felony, §40-35-111.

Attorney General Opinions. A foreign corporation or limited liability company licensed as a nonresident seller or direct shipper must obtain a certificate of authority from the Tennessee secretary of state only if the corporation or company transacts business in the state within the meaning of the relevant statutes, which depends on the character and extent of the corporation’s or the company’s transactions and business in the state. OAG 18-28, 2018 Tenn. AG LEXIS 27 (7/6/2018).

57-3-218. Winemaking on premises facility license.

  1. A winemaking on premises facility license may be issued as provided in this section for a business, located in a jurisdiction where the establishment of a winery is permitted pursuant to § 57-3-207, where individual customers who are twenty-one (21) years of age or older may purchase ingredients and rent the equipment, time, and space to manufacture wine, as defined in § 57-3-101, for personal use in an amount not to exceed the maximum amount that a private individual in that person's own home may manufacture pursuant to § 57-3-207(e). Any applicant for licensure under this section shall submit a verified, written application to the commission on the proper form authorized to be prescribed and furnished in this section, and the application may be granted by the commission, subject to the restrictions of this chapter. Subject to the limitations of subsection (b), any winemaking on premises facility license issued pursuant to this section shall authorize the holder of the license and the holder's customers to manufacture, but not rectify, wine, and the winemaking on premises facility license shall authorize the holder of the license and the holder's customers to place the wine in containers or bottles.
    1. Except for wine produced in the process of testing equipment or recipes, and producing samples to be distributed pursuant to subdivision (b)(2), a license holder shall not personally manufacture wine that is not intended for the personal use of the license holder on the premises of the winemaking on premises facility. Nothing in this subdivision (b)(1) shall be construed to prohibit a license holder from assisting the license holder's customers who are engaged in the manufacture of wine on the premises of the facility.
    2. A winemaking on premises facility licensed under this section may serve wine that is produced on the premises of the facility without charge as complimentary samples for tasting at the facility. Samples may be consumed at the premises only by a person who has a nonrefundable contract to manufacture at the premises, and the samples may not exceed one ounce (1 oz.) per sample. All wine produced at a winemaking on premises facility shall be removed from the premises by the customer or license holder who manufactured the wine and may only be used for home consumption and the personal use of the customer or license holder.
  2. Each applicant for a winemaking on premises facility license issued pursuant to this section shall pay to the commission a one-time, nonrefundable fee in an amount to be determined by the commission when the application is submitted for review. The license shall not be issued until a license fee in an amount to be determined by the commission is paid to the commission by the winemaking on premises facility, but issuance of the license is exempt from the requirements of § 57-3-106. The commission shall deposit collections with the state treasurer to be earmarked for and allocated to the commission for the purpose of the administration and enforcement of the duties, powers and functions of the commission.
  3. A winemaking on premises facility licensed under this section located in this state is authorized to sell the following items on the facility premises:
    1. Juices or concentrates derived from juices, or any agricultural products;
    2. Items used in home winemaking; and
    3. Other gift, tourism, or wine-related items as defined by regulations duly promulgated by the commission.
  4. Any wine transported from a winemaking on premises facility pursuant to this section must be accompanied by a bill of lading or other memorandum of shipment signed by the license holder for the facility where the wine was manufactured sufficiently identifying the nature, quantity, manufacturer, date and place of manufacture of the wine. Any person transporting such wine in excess of five gallons (5 gals.) shall have with the shipment a receipt or other documentation demonstrating that the wine was manufactured by the individual who is transporting the wine at a winemaking on premises facility as licensed in this section.
  5. Any licensee or other person who sells, furnishes, disposes of, gives or causes to be sold, furnished, disposed of or given, any wine in this state or for transport into this state, to any person under the age of majority as established by § 57-4-203(b), commits a Class A misdemeanor.
  6. The commission is empowered and authorized to promulgate such rules and regulations as may be necessary to carry out the duties of the commission as provided in this section, including, but not limited to, procedures governing the production and transportation of wine.
  7. It is the duty of the commissioner of agriculture to establish reasonable procedures requiring proper sanitary conditions about the winemaking on premises facility and to certify that these conditions have been met before the commission issues any license. The commissioner shall establish reasonable procedures requiring the process of manufacturing wine in a winemaking on premises facility to be carried on under proper sanitary conditions and in a sanitary manner; and for any failure to comply with the procedures, the commissioner shall notify the commission, which is authorized to revoke or suspend the license of any winemaking on premises facility.
  8. If any provision of this section or application of this section to any person or circumstance is held invalid, the invalidity shall not affect other provisions or applications of the section that can be given effect without the invalid provision or application, and to that end the provisions of this section are declared to be severable.

Acts 2011, ch. 451, § 2.

Cross-References. Penalty for Class A misdemeanor, §40-35-111.

57-3-219. Continuation of the issuance of licenses for the retail sale of alcoholic beverages for off-the-premises consumption in certain counties.

If, a smaller city located in a county having a population in excess of five hundred thousand (500,000), according to the 2000 federal census or any subsequent federal census, retained its charter when the metropolitan form of government was adopted in such county; and

If, such city later by action of its governing body abolishes its charter and by such action becomes a part of the general services district of such county having a metropolitan form of government; and

If, while the charter of such smaller city was in existence, licenses were issued for the retail sale of alcoholic beverages for off-the-premises consumption; then:

Notwithstanding any provision of the charter of such metropolitan government to the contrary, licenses may continue to be issued for the retail sale of alcoholic beverages for off-the-premises consumption for those stores which were located within the municipal boundaries of the city while the charter was in force even though, once the charter is abolished, such area will be designated as being included in the general services district of such county.

Acts 2010, ch. 1133, § 6; T.C.A. §57-4-108.

Compiler's Notes. Former §57-4-108, concerning licenses that may be continue to be issued for certain retail sales of alcoholic beverages for off-premises consumption, was transferred to §57-3-219 in 2011 by the Tennessee Code Commission.

For tables of U.S. decennial populations of Tennessee counties, see Volume 13 and its supplement.

57-3-220. License for military personnel living abroad to ship wine to this state.

  1. Any individual who has been stationed outside the United States while serving as a member of the armed forces of the United States or a member of a reserve or Tennessee national guard unit may apply to the commission for a one-time license allowing such individual to ship any wine such individual has purchased while residing outside the United States to this state.
  2. Each individual applying for a license under this section shall pay to the commission a one-time nonrefundable fee of one hundred dollars ($100). Each individual shall also pay the appropriate taxes required pursuant to § 57-3-302.
  3. The commission shall create a form for issuing a license under this section. The form shall contain any information the commission deems necessary for allowing shipment under this section and for ensuring the individual pays the appropriate taxes.
  4. Any individual who ships wine pursuant to this section is prohibited from reselling any wine shipped to this state.

Acts 2012, ch. 968, § 3.

57-3-221. Manager's permit.

  1. There is created a manager's permit to be issued by the commission to any individual who will be in actual control of the alcohol, wine or beer operations of a retailer licensed under § 57-3-204, or a retail food store wine licensee.
  2. An individual seeking a manager's permit shall make application for such permit by completing an application form in the manner prescribed by the commission. The individual must demonstrate that the individual meets the following requirements:
    1. Has not been convicted of any crime involving the sale or distribution of alcohol over the previous eight (8) years;
    2. Has not been convicted of any felony within the previous five (5) years;
    3. Is at least eighteen (18) years of age;
    4. Has not had an employee or server permit or any similar type permit issued by the state, any local jurisdiction, or any foreign jurisdiction revoked by any issuing authority within the previous three (3) years;
    5. Does not hold any ownership interest in any licensee or permittee licensed pursuant to § 57-3-203, nor shall the individual have had any ownership interest in any licensee licensed under this title that has had its license revoked by the issuing authority within the previous eight (8) years; and
    6. Has received training in alcohol awareness and the rules and regulations of the commission by an entity approved by the commission pursuant to § 57-3-705.
  3. The manager's permit shall be valid for a period of five (5) years. The commission may impose a fee for the processing and cost of issuance of the manager's permit and for renewal of such permit. The fee shall be adequate for the commission to undertake an appropriate verification of the information provided by the applicant. This fee, which shall not exceed two hundred dollars ($200), shall be determined by the commission.
  4. Manager's permits shall be required for the appropriate individuals at retailers licensed under § 57-3-204 and retail food store wine licensees.

Acts 2014, ch. 554, § 11; 2017, ch. 373, §§ 4, 5.

57-3-222. Minimum required sales for renewal of retail license — Recordkeeping — Suspension or revocation of license.

  1. In order to renew a retail license, the licensee must maintain a minimum of sixty-five percent (65%) of the licensee's total sales from alcoholic beverages, including wine and beer, such percentage to be calculated on an annual basis. The licensee shall keep sales and purchase records through accounting methods that are customary or reasonable in the retail business.
  2. A retail licensee who fails to comply with subsection (a) in achieving the minimum required sales or in failing to keep adequate records shall have one (1) year to come into compliance. During this one-year period, the licensee shall work with the commission in creating a plan that would bring the licensee into compliance with this section.
  3. Failure to comply after the one-year period shall result in the retail license being suspended or revoked by the commission.
  4. In order to determine compliance with subsection (a), each retail licensee shall submit sales information to the commission in such form as the commission deems appropriate at the time the licensee applies for renewal. The commission is authorized to verify sales information if the commission deems it necessary with the department of revenue.

Acts 2014, ch. 554, § 13.

57-3-223. Retail licensee permitted to also hold license to sell alcoholic beverages for consumption on premises — Requirements.

Notwithstanding any other provision in this title or any rule to the contrary, an individual or corporation may hold a retail license issued pursuant to §57-3-204 and may also hold a license to sell alcoholic beverages for consumption on premises pursuant to chapter 4 of this title; provided, however, that each license must be operated as a separate and distinct business and shall not be at the same location.

Acts 2014, ch. 554, § 16.

57-3-224. Delivery service license.

    1. There is created a delivery service license to be issued by the commission to any delivery service that delivers or facilitates delivery of prepared food from restaurants or items from a retail store to customers as part of the delivery service's business and seeks to deliver sealed packages of alcoholic beverages or beer or both sold by any retailer licensed under this chapter, or an off-premises retail permittee licensed under § 57-5-103 as part of such delivery service. If a delivery service licensed under this section is delivering alcoholic beverages or beer purchased from a retailer in accordance with this subsection (a), the delivery service shall not deliver the alcoholic beverages or beer to a customer who resides or is located at the time of the delivery:
      1. More than fifty (50) miles from the licensed premises of the retailer at which the alcoholic beverages or beer were purchased; or
      2. In any county other than the county in which such retailer is located or a county contiguous to such county.
    2. A delivery service includes, for purposes of this title, a technology services company that provides software or an application for connecting customers, retailers, or restaurants to a delivery driver. A delivery service does not include, and no license is required under this title to operate, a technology services company that does not employ or contract with delivery drivers but rather provides software or an application that connects retail licensees with consumers for the delivery of alcoholic beverages or beer from the retailer pursuant to § 57-3-406(j) or a company that ships wine pursuant to § 57-3-217. This section does not apply to a “motor carrier” or “freight forwarder” as those terms are defined in 49 U.S.C. § 13102, or to an “air carrier” as that term is defined in 49 U.S.C. § 40102.
    1. Any person, partnership, limited liability company, or corporation desiring to deliver sealed packages of alcoholic beverages or beer sold by a retailer licensed under § 57-3-204 or an off-premise retail permittee licensed under § 57-5-103 as part of such delivery service shall make application to the commission for a delivery service license, which application shall be in writing and verified, on forms herein authorized to be prescribed and furnished; and the commission shall, subject to the restrictions of this section, issue such license.
      1. Any person applying for a delivery service license shall be twenty-one (21) years of age or older and must not have been convicted of a felony as described in § 57-3-210(c).
      2. The commission may issue a delivery service license to any person, partnership, limited liability company, or corporation that is registered to do business in this state regardless of the residence of the ownership of such entity.
  1. Each applicant for a delivery service license shall pay to the commission a one-time, nonrefundable fee in the amount of three hundred dollars ($300) when the application is submitted for review. A delivery service license shall not be issued by the commission until the applicant pays the annual license fee of one hundred fifty dollars ($150).
  2. Each delivery service licensee shall conduct, or have a third party conduct, a local and national criminal background check on any potential employee or independent contractor that seeks to be licensed pursuant to § 57-3-225. Such background check shall include a multistate criminal records locator or other similar commercial nationwide database with validation.
  3. It is the duty of each delivery service licensee to ensure that each employee or independent contractor, delivering alcoholic beverages or beer pursuant to § 57-3-406(k) for the licensee, is licensed pursuant to § 57-3-225.
  4. A delivery service may use either employees or independent contractors as part of such delivery service. Any person delivering products for a delivery service shall comply with the provisions contained in § 57-3-225 related to delivery drivers in order to deliver alcoholic beverages or beer or both as provided in this section.

Acts 2015, ch. 285, § 2; 2016, ch. 1045, §§ 2, 3; 2016, ch. 1068, § 3; 2018, ch. 765, §§ 1-4.

Amendments. The 2018 amendment redesignated former (a) as present (a)(1) and added (a)(1)(A), (a)(1)(B) and (2); in the first sentence of present (a)(1), inserted “or facilitates delivery of” and “or items from a retail store”, substituted “any retailer licensed under this chapter, or an off-premises retail permittee” for “a retailer licensed under §57-3-204 or an off-premise retail permittee”, and deleted “at a distance greater than one hundred (100) miles from the licensed premises of the retailer at which the alcoholic beverages or beer was purchased” at the end; inserted “or independent contractor” in (d) and (e); and added (f).

Effective Dates. Acts 2018, ch. 765, § 8. July 1, 2018.

57-3-225. Delivery employee license.

  1. Beginning July 1, 2018, each delivery service licensed under § 57-3-224 shall be required to annually file a report stating the number of delivery drivers used by the delivery service to deliver alcoholic beverages, beer, or both, in the twelve (12) months preceding the date of the report. Each delivery service licensee shall maintain for each delivery driver covered by the licensee's delivery service license, records sufficient to verify the identity of each delivery driver, a copy of each delivery driver's license, and a copy of the background check conducted for that delivery driver pursuant to § 57-3-224(d).
  2. Each delivery service licensee may employ or contract with any person meeting the following requirements:
    1. Is at least twenty-one (21) years of age;
    2. Has had a background check conducted pursuant to § 57-3-224(d) to ensure the individual has not been convicted of any crime involving the sale and distribution of alcohol within the previous seven (7) years or has not been convicted of any felony within the previous five (5) years; and
    3. Has a valid driver license.
  3. In addition to the annual license fee in § 57-3-224(c), a delivery service licensee shall pay a fee based on the total number of delivery service employees or independent contractors used by the delivery service licensee in the prior year. The fee shall be as follows:
    1. 0-15 delivery drivers — $50
    2. 16-30 delivery drivers — $100
    3. 31-45 delivery drivers — $150
    4. 46-60 delivery drivers — $200
    5. 61-100 delivery drivers — $250
    6. 101-150 delivery drivers — $300
    7. 151-200 delivery drivers — $350
    8. Fifty dollars ($50.00) for each additional fifty (50) delivery drivers over two hundred (200) until a maximum of one thousand dollars ($1,000).
  4. With respect to the delivery of alcoholic beverages, beer, or both pursuant to this chapter, a delivery service company may be subject to fines or the suspension or revocation of its license from the commission based on the conduct of a delivery driver. A retailer is not subject to a fine or the suspension or revocation of its license based on conduct of a delivery service driver after the driver picks up alcoholic beverages or beer from the retailer.

Acts 2015, ch. 285, § 2; 2016, ch. 1045, § 4; 2018, ch. 765, § 6.

Amendments. The 2018 amendment rewrote the section which read: “(a)  Beginning July 1, 2015, there is created a delivery employee license to be issued by the commission to any individual employed by a person licensed pursuant to §57-3-224 who delivers alcoholic beverages or beer pursuant to §57-3-406(k).“(b)  Any individual seeking a delivery employee license shall make application for such license by completing an application form in the manner prescribed by the commission. The individual shall demonstrate that the individual meets the following requirements:“(1)  Is at least twenty-one (21) years of age;“(2)  Has had a background check done pursuant to §57-3-224(d) to ensure the individual has not been convicted of any crime involving the sale or distribution of alcohol within the previous eight (8) years or has not been convicted of any felony within the previous five (5) years; and“(3)  Has a valid driver license.“(c)  Each individual applying for a license under this section shall pay to the commission a fee of fifty dollars ($50.00). Each delivery employee license shall be valid for a period of five (5) years.“(d)  If an applicant does not meet the requirements of subsection (b), but is otherwise eligible for a delivery employee permit, then the applicant's application shall be initially denied pursuant to this subsection (d). Within thirty (30) days of such initial denial, the applicant may request a hearing to be held pursuant to the Uniform Administrative Procedures Act, compiled in title 4, chapter 5. At such hearing, the administrative law judge or hearing officer may consider any evidence the administrative law judge or hearing officer deems relevant to the matter and may, if in the administrative law judge's or hearing officer's judgment the principles of equity require, approve the application and grant the delivery employee permit, notwithstanding the requirements of subsection (b).“(e)  If an applicant does not request a hearing pursuant to subsection (d) within the required period, then the application's denial will be final and the applicant shall not reapply for a delivery employee permit until five (5) years from the application's final denial. If a person applies for a delivery employee permit in violation of this subsection (e), then such application shall be denied and subsection (d) shall not apply.“(f)  If the administrative law judge, hearing officer, or commission denies an application at a hearing held pursuant to subsection (d), then the application's denial will be final and the applicant shall not reapply for a delivery employee permit until five (5) years from the application's final denial. If a person applies for a delivery employee permit in violation of this subsection (f), then such application shall be denied and subsection (d) shall not apply.“(g)  If a person is convicted of an offense described in subdivision (b)(2) after being issued a delivery employee permit pursuant to this section, the commission may institute proceedings to revoke the person's employee permit pursuant to §57-3-214; provided, that the administrative law judge or hearing officer may, if in the administrative law judge's or hearing officer's judgment the principles of equity require, refuse to revoke the person's delivery employee permit, notwithstanding a finding that the person has been convicted of an offense described in subdivision (b)(2). If the administrative law judge, hearing officer, or commission revokes a delivery employee permit pursuant to this subsection (g), then the applicant shall not reapply for a delivery employee permit until five (5) years from the revocation. If a person applies for a delivery employee permit in violation of this subsection (g), then such application shall be denied and subsection (d) shall not apply.”

Effective Dates. Acts 2018, ch. 765, § 8. July 1, 2018.

Part 3 Taxes

57-3-301. Brand name alcoholic beverages — Tax — Sale or importation — Contracts — Revocation of permits or licenses.

  1. As used in this section “brand” means:
    1. Each and every distilled spirits, wine product, beer with an alcoholic content of five percent (5%) by weight or greater high alcohol content beer product bearing a distinct brand name or trade name as defined or used by the United States department of the treasury, alcohol and tobacco tax and trade bureau, shall be considered a separate “brand” for purposes of this section;
    2. Within the group of wine or distilled spirits products bottled, manufactured, distilled, rectified, imported or marketed under a particular “brand name” or “trade name” as described in subdivision (a)(1), products which fall within separate classes or types as defined in the standards of identity for the several classes and types of wine and distilled spirits promulgated by the federal bureau of alcohol, tobacco and firearms shall be considered separate “brands” for purposes of this section; provided, that wine or distilled spirits products which differ only in the amount of alcohol or proof they contain shall not be considered separate brands for purposes of this section;
    3. The name, trademark, or trade name of the product, as indicated on the certificate of label approval as registered with the alcohol and tobacco tax and trade bureau of the United States department of the treasury, or, if no certificate of label approval is required, then the name, trademark, or trade name of the product.
    1. There is imposed a tax of two hundred fifty dollars ($250) per annum upon each brand of distilled spirits sold in this state, for which actual wholesale sales during the twelve (12) months immediately preceding May 22, 1979, were fifty (50) cases or more.
    2. There is imposed a tax of one hundred dollars ($100) per annum upon each brand of distilled spirits sold in this state for which actual wholesale sales during the twelve (12) months immediately preceding May 22, 1979, were less than fifty (50) cases.
    3. There is imposed an annual tax upon each brand of wine sold in this state. The amount of this tax shall be based on the number of cases sold at wholesale in this state during the year immediately preceding any tax year as follows:
      1. Less than two hundred fifty (250) cases — No tax due; and
      2. Two hundred fifty (250) or more cases — Two hundred fifty dollars ($250).
    4. There is imposed a tax of one hundred dollars ($100) per annum upon each brand of beer with an alcoholic content greater than five percent (5%) by weight or each brand of high alcohol content beer sold in this state.
  2. No manufacturer, importer or representative shall introduce into this state any brand of alcoholic beverages until such tax has been paid to the department of revenue.
  3. No wholesaler shall give an order, receive, accept or offer for sale any brand of alcohol beverages until the annual tax has been paid to the department of revenue.
    1. No brand may be introduced into the state except pursuant to written contract to sell such brand in this state between the manufacturer, brewer or importer of such brand and the Tennessee wholesaler who is to sell such brand in this state. Every contract shall contain the specified area in which such wholesaler will sell such brand and no more than one wholesaler may sell such brand in any specified area.
    2. If any party to a contract described in subdivision (e)(1) fails to comply with any provision of the contract, an aggrieved party may bring an action in the circuit or chancery courts of this state.
    3. No contract shall include the entire state of Tennessee as the specified area in which such wholesaler will sell any brand.
    4. No manufacturer or importer nor any successor to a manufacturer or importer may terminate a contract prior to the expiration of its term except for good cause, asserted in good faith, as determined by the commissioner of revenue. No manufacturer or importer, nor any successor to a manufacturer or importer may seek to terminate a contract for good cause, unless such manufacturer or importer has afforded the affected wholesaler with whom it has contracted a reasonable opportunity to cure any deficiency which in no event shall be less than thirty (30) days. No successor to a manufacturer or importer may register a contract to distribute a brand in this state with the department of revenue which differs from the contract previously filed for the distribution of such brand except for good cause, asserted in good faith, as determined by the commissioner of revenue.
    5. No manufacturer or importer nor any successor to a manufacturer or importer may fail to renew a contract with a wholesaler except for good cause, asserted in good faith, as determined by the commissioner of revenue. No manufacturer or importer, nor any successor to a manufacturer or importer may fail to renew a contract for good cause, unless such manufacturer or importer has afforded the affected wholesaler a reasonable opportunity to cure any deficiency which in no event shall be less than thirty (30) days.
    6. For purposes of this section, any modification of the designated area serviced by a wholesaler shall constitute a termination of its contract.
  4. If the commissioner of revenue, after a hearing, determines the manufacturer or importer has failed to establish good cause asserted in good faith as required herein, the provisions of the contract between such manufacturer or importer and the designated Tennessee wholesaler are still in force and a failure by such manufacturer or importer or its successor to ship to such a wholesaler a reasonable amount of the brand shall be grounds for a revocation of that manufacturer's or importer's nonresident seller's permit or winery license.
  5. The department of revenue is authorized to accept the brand registrations required under this section and the contracts described in subdivision (e)(1) by electronic means. The department of revenue is authorized to approve one (1) or more third parties to facilitate electronic submissions on behalf of importers, manufacturers, suppliers, or wholesalers; provided, that such third parties shall:
    1. Be permitted to assess a reasonable cost against the importer, supplier, manufacturer, or wholesaler that elects to use the electronic service;
    2. Not assess any fees or costs against the state for providing such service;
    3. Adhere to the records requirements, privacy requirements, and technical requirements imposed by the department of revenue;
    4. Agree to provide documentation and support for all brand registrations and contract registrations as required by the department of revenue as part of the electronic process; and
    5. Agree to facilitate communication between the department of revenue and the affected importers, manufacturers, suppliers, and wholesalers to relate the status of any filing, transfer, or tax liability.
  6. The department of revenue is authorized to promulgate rules and regulations relative to the brand registration provisions of this section.

Acts 1979, ch. 341, § 1; T.C.A., § 57-130; Acts 1980, ch. 782, § 1; 1984, ch. 684, §§ 1, 2; 1985, ch. 125, § 1; 1996, ch. 706, §§ 1, 2; 2013, ch. 171, §§ 1, 2; 2014, ch. 861, §§ 20-22.

Compiler's Notes. Acts 1985, ch. 125, § 2 provided that it is the intent of the general assembly to afford all affected parties to a proposed change in distribution of a brand of alcoholic beverage the right to a hearing prior to the change becoming effective.

For regulations regarding wine and distilled spirits promulgated by the federal bureau of alcohol, tobacco, and firearms, referred to in this section, see 27 CFR 4.1 et seq. and 27 CFR 5.1 et seq.

Cross-References. Damaged or unaccepted goods, tax liability, §57-3-109.

Attorney General Opinions. Brand transfer hearings in the department of revenue, OAG 90-65 (6/12/90).

A vendor who is caught selling beer to a minor is subject to criminal penalties imposed by the local criminal court ranging from a Class A misdemeanor to a Class E felony and is also subject to the suspension or revocation of his permit imposed by the local beer board, OAG 01-062 (4/20/01).

NOTES TO DECISIONS

1. Constitutionality.

Tennessee’s ban on the direct shipment of alcoholic beverages (including wine) to consumers is valid.Jelovsek v. Bresden, 482 F. Supp. 2d 1013, 2007 U.S. Dist. LEXIS 23814 (E.D. Tenn. Mar. 30, 2007), aff'd in part and vacated in part, Jelovsek v. Bredesen, 545 F.3d 431, 2008 FED App. 0386P (6th Cir.), 2008 U.S. App. LEXIS 22295 (6th Cir. Tenn. 2008).

2. Legislative Intent.

The provisions of T.C.A. §57-3-301 were not intended to grant any more freedom to the liquor industry than had previously existed, but rather to facilitate the process of governmental regulation and tax collection. Brown-Forman Distillers Corp. v. Olsen, 676 S.W.2d 567, 1984 Tenn. App. LEXIS 3416 (Tenn. Ct. App. 1984).

3. Transfer of Authority.

T.C.A. §57-3-301(g) transferred the rule-making power as to brand registration, formerly under T.C.A. §57-1-209, from the alcoholic beverage commission to the department of revenue. Brown-Forman Distillers Corp. v. Olsen, 676 S.W.2d 567, 1984 Tenn. App. LEXIS 3416 (Tenn. Ct. App. 1984).

57-3-302. Tax upon distribution or sale — Exemptions.

  1. There is levied upon the sale or distribution by sale or gift a tax of one dollar and twenty-one cents ($1.21) on each gallon of wine, and a like or proportional rate per gallon on wine sold or distributed in any other container of more or less than one gallon (1 gal.); provided, however, that this chapter shall not apply to the sale, gift or distribution of any wine manufactured, sold, given away or distributed and used solely for sacramental purposes.
  2. There is levied upon the sale or distribution by sale or gift a tax of four dollars and forty cents ($4.40) on each gallon of spirits, and a like or proportional rate per gallon on spirits sold or distributed in any container of more or less than one gallon (1 gal.).

Acts 1939, ch. 49, § 13; 1943, ch. 5, § 1; 1947, ch. 61, § 1; C. Supp. 1950, § 6648.19 (Williams, § 6648.16); Acts 1963, ch. 37, § 1; 1967, ch. 331, § 2; 1977, ch. 126, § 3; T.C.A. (orig. ed.), § 57-131; Acts 1985, ch. 386, § 2; 2002, ch. 856, §§ 1a, 1c.

Compiler's Notes. Acts 2002, ch. 856, § 10, effective July 4, 2002, which raised the amount of tax to be levied in subsections (a) and (b), provided that notwithstanding any provision of law to the contrary, the commissioner of revenue is authorized to waive tax liability and associated interest and penalties otherwise imposed for failure to pay taxes levied pursuant to that act in a timely manner, but only to the extent that the taxpayer or vendor can demonstrate, to the commissioner's satisfaction, that the taxpayer's or vendor's noncompliance with the requirements of the act unavoidably and directly resulted from the close proximity of the effective date of the act with implementation of the increase in tax rates or items or activities taxed pursuant to the provisions of the act. Section 14(j) of that same act provided that § 10 be repealed effective September 2, 2002.

Acts 2002, ch. 856, § 13 provided that no expenditure of public funds pursuant to that act shall be made in violation of the provisions of Title VI of the Civil Rights Act of 1964, as codified in 42 U.S.C. § 2000d.

Cross-References. Tennessee wine products exempt from tax, §57-3-207.

Textbooks. Tennessee Jurisprudence, 16 Tenn. Juris., Intoxicating Liquors, §§ 13, 14.

Law Reviews.

A Focus on Taxes: The Tennessee Tax Reform Act of 2002 Explained, 38 No. 9 Tenn. B.J. 12 (2002).

57-3-303. Payment of tax — Returns — Bond — Stamps — Rules and regulations — Penalties — Armed forces exemption.

  1. Any wholesaler who imports alcoholic beverages into this state, or who receives alcoholic beverages manufactured in the state, for the purpose of resale in any retail container for eventual retail sale or distribution by sale or gift in this state, shall pay the tax imposed in § 57-3-302; provided, that manufacturers and rectifiers duly qualified under this chapter shall be exempt therefrom on all out of state shipments made to persons holding both federal and state permits to sell alcoholic beverages; and provided further, that any distiller or manufacturer licensed to manufacture alcoholic beverages in Tennessee shall be permitted to pay such tax to the commissioner of revenue on such amount of its own product as may be needed for its own use, not to exceed one hundred (100) cases per month. Whenever “sale” or “sold” is used hereinafter in this section, it also means “use” or “used” and “distribute by gift” or “distributed by gift,” unless the context requires otherwise.
    1. The tax levied by § 57-3-302 shall become due and payable on the first day of each month following the month during which taxable transactions occur, and shall become delinquent if not paid on or before the fifteenth day of each such following month. For the purpose of ascertaining the amount of tax payable, it is the duty of each licensed wholesaler, distiller or manufacturer to transmit to the commissioner a return, as provided for hereinafter, on or before the fifteenth day of each month, upon forms prescribed, and furnished by the commissioner. The tax liability established on the return submitted shall be based upon adjusted gross sales, other than sales or returns to wholesalers and/or suppliers, for the preceding calendar month, and payment thereof shall be made on or before the fifteenth day following such month.
    2. In the event of termination of business by a wholesaler, a final return shall be filed and all tax due paid on or before the fifteenth day following closure.
    1. Each wholesaler of alcoholic beverages in this state shall file, on or before the fifteenth day of each month, an exact and verified return with the commissioner showing therein, for the preceding calendar month, the quantities of alcoholic beverage:
      1. Constituting the wholesaler's beginning and ending inventory;
      2. Shipped to the wholesaler from within this state and received by the wholesaler in this state;
      3. Shipped to the wholesaler from outside the state and received by the wholesaler in this state;
      4. Sold by the wholesaler to purchasers or persons in this state and, indicated separately, those sales or transactions of alcoholic beverages to purchasers or persons within this state on which the tax levied in § 57-3-302 is not applicable; and
      5. Sold by the wholesaler to purchasers or persons outside this state.
    2. Such report shall also contain any other information required by the commissioner.
  2. Each wholesaler, distiller or manufacturer required to file a return shall keep accurate and complete books and records, accounts, and other documents as may be deemed necessary by the commissioner and the commission to substantiate the accuracy of the wholesaler's, distiller's or manufacturer's return and the amount of tax due, and shall retain such records for a period of three (3) years.
  3. The commission, after public hearing of which the licensee shall have due notice as heretofore provided in this chapter, may suspend or revoke any license heretofore issued under this chapter for a failure to pay any tax required by this chapter and may suspend or revoke such license for a violation of or failure to comply with the rules and regulations promulgated hereunder, upon receipt of a certification from the commissioner reflecting such failure to pay such tax or a violation of or failure to comply with such rules and regulations.
    1. In order to ensure the payment of taxes levied herein, every licensed wholesaler of alcoholic beverages shall qualify with the commissioner before making sales of any alcoholic beverages in this state.
    2. In order to so qualify, each wholesaler who is licensed in this state shall annually furnish the department:
      1. A cash bond, or a surety bond, with a solvent surety company qualified to do business in this state, the amount of which shall be no less than one hundred ten percent (110%) of the average monthly tax liability of such licensee for the taxes imposed herein during the preceding twelve-month period;
      2. Any wholesaler shall before beginning business file an initial bond for a period of four (4) months, the amount of which shall be determined by the commissioner, and at the end of such period the bond shall be adjusted for the balance of the twelve-month period or until the following July 1, whichever occurs first, in an amount no less than one hundred ten percent (110%) of the average tax liability of licensee for the first four (4) months engaged in business, and such bond shall be adjusted annually thereafter in the manner as set forth in subdivision (f)(2)(A); and
      3. Such other information as the commissioner may require.
  4. The purchase and affixation of alcoholic beverage tax or identification stamps are not required in this state, and all requirements pertaining to the purchase and affixation of such stamps are hereby specifically repealed.
    1. If a taxpayer has been in continuous operation for three (3) consecutive years and during the preceding twelve (12) months has paid the gallonage tax imposed by § 57-3-302 for which the taxpayer is liable within the period set by this section or by rule, then the taxpayer shall not be required to execute and maintain any bond required by this section.
    2. Any taxpayer exempted from the bonding requirement of this section who fails to pay the tax levied by § 57-3-302 within the period for payment set by this section or by rule shall, upon such failure, be required to execute and maintain a bond as required in this section.
  5. The commission shall be authorized to prescribe the manner by which any licensee shall document that all alcoholic beverages sold or distributed in this state have been properly distributed and that all taxes imposed hereunder have been paid.
  6. The commission and the commissioner are authorized to make reasonable rules and regulations, not inconsistent with this chapter, relative to the proper documentation needed to demonstrate that all alcoholic beverages and wine distributed in this state have been properly taxed.
  7. The state tax set forth in this title on intoxicating liquor or alcoholic beverages, as defined in § 57-3-101, shall not be applicable to such intoxicating liquors or alcoholic beverages sold for consumption within the geographical boundaries of a fort, base, camp or post of the armed forces of the United States, or to post exchanges, ship service stores, commissaries and messes operated by the United States armed forces. The exemption of the tax herein made shall be effectuated by the department allowing wholesalers and distilleries, duly licensed in Tennessee, credit for taxes paid on such intoxicating liquors or alcoholic beverages sold to post exchanges, ship service stores, commissaries and messes operated and controlled by the United States armed forces, and which are instrumentalities of the government of the United States. This credit shall be allowed only upon application made therefor to the department by the wholesaler or distillery delivering the intoxicating liquor or alcoholic beverage, and upon a showing by copy of the invoice with the signature of an officer or civilian employee who possesses managerial authority over the post exchange, ship service store, commissary or mess certifying that the alcoholic beverage was sold to and delivered to the post exchange, ship service store, commissary or mess by the Tennessee wholesaler or distillery. In addition, the application shall be supported by such other evidence as the commissioner may by regulation require.
  8. Notwithstanding § 57-3-302, the state tax on intoxicating liquor or alcoholic beverages with an alcoholic content of seven percent (7%) or less shall be one dollar and ten cents ($1.10) per gallon and no identification stamps shall be required to be fixed to the retail container of such alcoholic beverage.

Acts 1939, ch. 49, § 13; C. Supp. 1950, § 6648.19 (Williams, § 6648.16); Acts 1965, ch. 119, § 1; 1968, ch. 521, § 1; 1970, ch. 361, § 1; 1970, ch. 398, § 1; 1974, ch. 707, § 1; modified; T.C.A. (orig. ed.), § 57-132; Acts 1980, ch. 885, § 4; 1983, ch. 119, § 1; 1987, ch. 226, § 1; 1988, ch. 526, § 13; 1990, ch. 621, §§ 1, 2; 1992, ch. 608, §§ 1-4; 1993, ch. 108, § 1; 2014, ch. 861, § 5.

Textbooks. Tennessee Jurisprudence, 16 Tenn. Juris., Intoxicating Liquors, §§ 16, 17.

Law Reviews.

The Tennessee Department of Revenue and the Uniform Administrative Procedures Act (Mike Norton), 6 Mem. St. U.L. Rev. 303.

57-3-304. Sale or possession of untaxed alcoholic beverages unlawful.

  1. No alcoholic beverages in retail containers shall be sold for eventual retail sale or distribution by gift or retail sale in the state unless the taxes imposed under this part are paid. No retail outlet or unlicensed individual shall purchase or have in its possession any alcoholic beverages unless the taxes imposed under this part are paid.
  2. Any person possessing alcoholic beverages in excess of five gallons (5 gals.) shall have the burden of proof that such beverages were purchased from a licensed retailer or retail food store licensed to sell wine pursuant to part 8 of this chapter and that all taxes imposed by this part have been paid.
  3. It is unlawful for any person, dealer, distributor, or manufacturer, to sell, offer for sale, display for sale, barter, exchange or give away any alcoholic beverage, or any container thereof, in this state, without having first paid, in the manner prescribed by the commission, the tax provided in §§ 57-3-302 and 57-3-303.
  4. A violation of this section is a Class C misdemeanor.

Acts 1939, ch. 49, § 13; C. Supp. 1950, § 6648.19 (Williams, § 6648.16); impl. am. Acts 1963, ch. 257, § 34; T.C.A. (orig. ed.), § 57-133; Acts 1989, ch. 591, § 113; 1992, ch. 608, § 5; 2009, ch. 434, § 5; 2014, ch. 554, § 3.

Cross-References. Penalty for Class C misdemeanor, §40-35-111.

Textbooks. Tennessee Jurisprudence, 16 Tenn. Juris., Intoxicating Liquors, §§ 12, 17, 20.

NOTES TO DECISIONS

1. Persons Subject to Section.

A tax is levied upon a retailer of intoxicating liquors and, under the definition of a retailer in T.C.A. §57-3-101, any person who sells at retail any whiskey must be regarded as falling within that description regardless of whether making one sale or many sales. Hill v. State, 176 Tenn. 475, 144 S.W.2d 734, 1940 Tenn. LEXIS 89 (1940).

2. Possession of Liquor.

Possession of liquors in general is only made prima facie evidence of possession “with intent to sell or distribute the same contrary to the law.” Daniels v. State, 176 Tenn. 181, 140 S.W.2d 148, 1939 Tenn. LEXIS 112 (1940), superseded by statute as stated in, State v. Durso, 645 S.W.2d 753, 1983 Tenn. LEXIS 768 (Tenn. 1983).

This section did not make the bare possession of liquor in containers not bearing the Tennessee revenue stamp an offense except by a “retail outlet” and a presentment which did not charge the defendant with being a “retail outlet” did not charge any offense triable under this statute. Daniels v. State, 176 Tenn. 181, 140 S.W.2d 148, 1939 Tenn. LEXIS 112 (1940), superseded by statute as stated in, State v. Durso, 645 S.W.2d 753, 1983 Tenn. LEXIS 768 (Tenn. 1983).

3. Selling, Exchanging or Giving Away Liquor.

Since under this section it is unlawful for “any person” to sell, exchange or give away any alcoholic beverage without having first paid the tax, it is immaterial whether or not such person be regarded as a dealer or person engaged in selling intoxicating liquors and a conviction for a single sale is valid. Hill v. State, 176 Tenn. 475, 144 S.W.2d 734, 1940 Tenn. LEXIS 89 (1940).

57-3-305. State tax exclusive.

The tax imposed in §§57-3-302 and57-3-303 is a state tax, for the benefit of the state and the counties thereof as hereinafter provided, and no county, municipality or taxing district shall have the power to levy a like tax.

Acts 1939, ch. 49, § 13; 1943, ch. 5, § 3; 1947, ch. 61, § 3; mod. C. Supp. 1950, § 6648.19 (Williams, § 6648.16); T.C.A. (orig. ed.), § 57-134.

57-3-306. Disposition of tax proceeds.

  1. Any county in this state where a distillery is located shall receive four cents (4¢) per liter of the tax imposed by § 57-3-302(b) collected on all sales in this state of the spirits manufactured by such distillery.
    1. Except for the distribution as provided in subsection (a), collections of the tax imposed by § 57-3-302(a) and (b) shall be distributed eighty-two and one-half percent (82.5%) to the general fund and seventeen and one-half percent (17.5%) to the counties. The amount distributed to the counties shall be apportioned among the counties three fourths (¾) in proportion to their population and one fourth (¼) in proportion to their area.
    2. Before distributing to the counties any of the revenues mentioned in subsection (a) and subdivision (b)(1), the commissioner of finance and administration shall deduct a sum measured at a rate of sixteen thousand dollars ($16,000) per month, which sum together with an appropriation per annum from the general fund of the state shall be apportioned and transmitted to the University of Tennessee for use by the university in operating the county technical advisory service (CTAS) in its Institute for Public Service (IPS) as provided by § 49-9-402.
  2. Thirty percent (30%) of the amount distributed to counties having a population of more than two hundred fifty thousand (250,000), according to the 1970 federal census or any subsequent federal census, shall be paid by such counties to any municipalities within such counties that have a population of one hundred fifty thousand (150,000), according to the 1970 federal census or any subsequent federal census.
  3. For purposes of allocating tax proceeds under this section, county population shall be as reported by the most recent federal census except as modified by special census taken pursuant to § 9-16-101.

Acts 1939, ch. 49, § 13; 1943, ch. 5, §§ 1, 3; 1947, ch. 61, §§ 1, 3; mod. C. Supp. 1950, § 6648.19 (Williams, § 6648.16); impl. am. Acts 1959, ch. 9, § 14; Acts 1963, ch. 37, § 2; impl. am. Acts 1963, ch. 257, § 33; Acts 1973, ch. 295, § 18; impl. am. Acts 1975, ch. 248, § 1; Acts 1978, ch. 497, § 3; 1978, ch. 806, § 3; 1978, ch. 835, § 1; T.C.A. (orig. ed.), § 57-135; Acts 1980, ch. 556, § 1; 1983, ch. 36, § 1; 2003, ch. 355, § 18; 2005, ch. 500, § 1; 2006, ch. 989, § 6.

Compiler's Notes. For tables of U.S. decennial populations of Tennessee counties, see Volume 13 and its supplement.

Acts 2003, ch. 355, § 66 provided that no expenditure of public funds pursuant to the act shall be made in violation of the provisions of Title VI of the Civil Rights Act of 1964, as codified in 42 U.S.C. § 2000d.

Acts 2006, ch. 989, § 17 provided that § 6 of the act, which deleted former subdivision (b)(3), shall apply to funds remitted to the department of revenue on or after August 1, 2006.

Cross-References. Disposition of license fees of wholesalers and retailers, §57-3-206.

Attorney General Opinions. The state can probably continue to distribute state-shared taxes even if the General Assembly does not enact a general appropriations act, OAG 00-083 (5/4/00).

The state can probably continue to distribute state-shared taxes even if the General Assembly does not enact a general appropriations act, OAG 00-083 (5/4/00).

57-3-307. Accounting for distribution of alcoholic beverages — Inventory adjustment for unsalable beverages.

  1. Any wholesaler who shall import alcoholic beverages into this state, or receive alcoholic beverages manufactured in the state for the purpose of use, resale or distribution by gift or retail sale in this state, shall be required to account for the distribution of all such alcoholic beverages and shall be unconditionally liable for the tax imposed herein for each and every container of alcoholic beverage removed from inventory and not sold or otherwise disposed of in accordance with this chapter or by rules and regulations promulgated by the commissioner of revenue.
  2. The commissioner shall prescribe appropriate rules and regulations for the proper adjustment of the wholesaler's inventory when alcoholic beverages in the wholesaler's inventory are rendered unsalable. Before authorizing such an adjustment, a claim in writing and proof must be furnished in support thereof and verified by the department of revenue.

Acts 1951, ch. 138, § 1 (Williams, § 6648.16); Acts 1965, ch. 243, § 1; 1968, ch. 521, § 2; 1970, ch. 398, § 2; T.C.A. (orig. ed.), § 57-136.

57-3-308. Taxes on high alcohol content beer.

The taxes imposed on high alcohol content beer shall be as provided in §57-3-302(a) or §57-3-303(l ), whichever is applicable.

Acts 2011, ch. 448, § 18.

Part 4 Prohibited Acts — Enforcement

57-3-401. Transportation, possession, importation, shipment or delivery of untaxed alcoholic beverages unlawful — Penalty.

    1. It is an offense for any person, firm or corporation, other than a common carrier or entity licensed under this title, to transport, either in person or through an agent, employee or independent contractor, untaxed alcoholic beverages or wine as defined in § 57-3-101 within, into, through or from this state in quantities in excess of five gallons (5 gals.). Except as provided in § 57-3-103(b) authorizing a person to store alcoholic beverages intended for a person's personal or social use, it is an offense for any person, firm, corporation or association to possess untaxed alcoholic beverages or wine in quantities in excess of five gallons (5 gals.). A violation of this subdivision (a)(1) is a Class E felony.
    2. Any person, firm, corporation or association transporting any alcoholic beverages or wine within or into this state shall bear the burden of proof that the taxes imposed by this title on alcoholic beverages or wine have been paid, or, in the case of wine that is manufactured at a winemaking on premises facility licensed pursuant to § 57-3-218, that no such taxes are due. A receipt or other documentation demonstrating legal purchase or transport from an entity licensed under § 57-3-203, § 57-3-204, § 57-3-207 or § 57-3-218 shall be adequate proof that such taxes have been paid or that no such taxes are due.
    1. It is an offense for any person, firm, corporation or association to import, ship, deliver or cause to be imported, shipped or delivered into this state any alcoholic beverages upon which the tax imposed by this title has not been paid or where such transportation is not authorized under this title to an entity possessing a license issued under this title. A violation of this subdivision (b)(1) is a Class E felony.
    2. Except as provided in § 57-3-207 for purchases made by an individual at a winery licensed pursuant to § 57-3-207, and notwithstanding the prohibition in subdivision (b)(1), it shall be lawful for any individual to transport not more than five gallons (5 gals.) of alcoholic beverages or wine into or within this state for the personal or household use of that individual.

Acts 1947, ch. 182, §§ 1, 2; C. Supp. 1950, § 6648.22 (Williams, §§ 6648.33, 6648.34); T.C.A. (orig. ed.), § 57-137; Acts 1989, ch. 591, § 61; 1992, ch. 608, §§ 6, 7; 2009, ch. 434, § 6; 2011, ch. 451, § 7.

Cross-References. Penalty for Class E felony, §40-35-111.

Textbooks. Tennessee Jurisprudence, 16 Tenn. Juris., Intoxicating Liquors, §§ 12, 17, 20.

Law Reviews.

The Wine Is In the Mail: The Twenty-First Amendment and State Laws Against the Direct Shipment of Alcoholic Beverages, 54 Vand. L. Rev. 2495 (2001).

NOTES TO DECISIONS

1. Constitutionality and Validity.

Acts 1947, ch. 182 from which this section was codified was not invalid as amending Acts 1939, ch. 49 without reciting the title or substance of such act since any amendment accomplished by the 1947 act was by implication and did not fall within such constitutional objections. Everhart v. State, 194 Tenn. 272, 250 S.W.2d 368, 1952 Tenn. LEXIS 378 (1952).

Tennessee's ban on direct shipment of alcoholic beverages, including wine, to consumers, is valid because it applies equally to in-state and out-of-state wineries. Jelovsek v. Bredesen, 545 F.3d 431, 2008 FED App. 386P, 2008 U.S. App. LEXIS 22295 (6th Cir. Oct. 24, 2008).

2. Sufficiency of Indictment.

An indictment which omits the allegation essential to constitute a felony under this section does not charge a felony. Shook v. State, 192 Tenn. 134, 237 S.W.2d 959, 1951 Tenn. LEXIS 389 (1951).

The indictment need not aver that the liquor in question contained more than five percent alcohol. Everhart v. State, 194 Tenn. 272, 250 S.W.2d 368, 1952 Tenn. LEXIS 378 (1952).

An indictment which avers that the defendants had the possession of “white moonshine liquor” was sufficient notice to the defendants that they were charged with the unlawful possession of unstamped whiskey and was equivalent to a charge to that effect. Everhart v. State, 194 Tenn. 272, 250 S.W.2d 368, 1952 Tenn. LEXIS 378 (1952).

3. Defenses.

The fact that the liquor was not unstamped would constitute an affirmative defense and the burden would be on the defendant to show the same. Everhart v. State, 194 Tenn. 272, 250 S.W.2d 368, 1952 Tenn. LEXIS 378 (1952).

Where liquor in fruit jar containers was physically introduced in the presence of the jury for their examination, it might be presumed that the character of the containers was such as to negative any thought of stamps and the jury by personal inspection could determine that no stamps had been affixed to the containers. Everhart v. State, 194 Tenn. 272, 250 S.W.2d 368, 1952 Tenn. LEXIS 378 (1952).

4. Searches and Seizures.

Where car was seen early in the morning traveling at an excessive rate of speed, sagging at the rear end and the officer noticed the odor of whiskey when he stopped the car, officer was justified in searching the trunk of the car without a search warrant. Dobbins v. State, 206 Tenn. 59, 332 S.W.2d 161, 1960 Tenn. LEXIS 342 (1960).

5. Evidence.

Introduction into evidence of fruit jar containers containing moonshine whiskey was sufficient proof that whiskey was unstamped. Everhart v. State, 194 Tenn. 272, 250 S.W.2d 368, 1952 Tenn. LEXIS 378 (1952).

The unexplained presence of contraband liquor upon the premises occupied by the accused and under his control is sufficient to convict. Hatchett v. State, 208 Tenn. 399, 346 S.W.2d 258, 1961 Tenn. LEXIS 298 (1961).

6. Judicial Notice.

Court will take judicial notice that moonshine whiskey contains more than five percent alcohol. Everhart v. State, 194 Tenn. 272, 250 S.W.2d 368, 1952 Tenn. LEXIS 378 (1952).

7. Cross-Examination of Defendant.

It was not error to cross-examine defendant charged with violation of this section relative to prior convictions for liquor offenses. Everhart v. State, 194 Tenn. 272, 250 S.W.2d 368, 1952 Tenn. LEXIS 378 (1952).

57-3-402. Importation or transportation limited.

  1. It is unlawful, except as permitted in this chapter, for any person to import or transport, or cause to be imported or transported from any other state, territory, or country, into this state, any alcoholic beverages defined in § 57-3-101. This subsection (a) shall not apply to alcoholic beverages imported or transported into this state pursuant to former § 39-17-705(5).
  2. Except as provided in § 57-3-217, no common carrier or other person shall bring or carry into this state for delivery or use in this state any alcoholic beverages unless the same shall be consigned to a manufacturer or wholesaler duly licensed under this chapter, or unless the alcoholic beverages shall be consigned to a post exchange, ship's service store, mess, club, commissary, or other agency under the jurisdiction of the department of defense, in which event notice of the shipment shall be given to the commission as required by § 57-3-110.
  3. It is unlawful for any person, railroad company or other common carrier, to transport or accept delivery of alcoholic beverages, consigned to any person except those duly authorized and holding a wholesaler's license. This shall not apply to:
    1. Shipments from a duly licensed wholesaler in this state to a retailer duly licensed or to points outside the state;
    2. Alcoholic beverages consigned to a post exchange, ship's service store, club, commissary, or mess, or any other agency under the jurisdiction of the department of defense after notice of such shipment is given to the commission as required by § 57-3-110; or
    3. Alcoholic beverages transported by a licensee pursuant to the rules and regulations of the commission for the purposes of conducting an educational seminar by a business licensed pursuant to § 57-3-204.
  4. Transportation of alcoholic beverages as defined in this chapter, within, into, through or over this state in quantities in excess of five gallons (5 gals.) is permitted only in conformity with this chapter, except in counties wherein the sale of alcoholic beverages has been legalized.
  5. No alcoholic beverages or wine may be sold or delivered to a retailer authorized to sell such alcoholic beverages or wine under this title, whether on premise or off premise, unless such alcoholic beverages have been stored or warehoused at a premises licensed by the commission pursuant to § 57-3-203 for a period of no less than twenty-four (24) hours. It is the stated purpose of this requirement to verify the legality of all alcoholic beverages or wine distributed in this state, and to facilitate the proper payment of all taxes on alcoholic beverages. This subsection (e) shall not apply to deliveries to a licensee under § 57-3-202(i), § 57-3-204(d), or § 57-3-207(r).

Acts 1939, ch. 49, §§ 12-14; C. Supp. 1950, §§ 6648.16, 6648.17, 6648.19 (Williams, §§ 6648.15-6648.17); Acts 1955, ch. 347, §§ 2, 2A, 3; impl. am. Acts 1959, ch. 9, § 14; impl. am. Acts 1963, ch. 257, § 36; modified; T.C.A. (orig. ed.), § 57-138; Acts 1987, ch. 164, § 3; 1998, ch. 765, § 2; 2009, ch. 348, § 3; 2009, ch. 434, § 7; 2016, ch. 1068, § 2.

Compiler's Notes. For the Preamble to the act regarding allowing an in-state or out-of-state entity to ship wine directly to consumers age twenty-one years or older in this state for personal use, please refer to Acts 2009, ch. 348.

Cross-References. Warning to be published by out-of-state liquor advertisers, §47-18-117.

Textbooks. Tennessee Jurisprudence, 16 Tenn. Juris., Intoxicating Liquors, § 12.

Law Reviews.

Criminal Law and Procedure — 1957 Tennessee Survey (James B. Earle), 10 Vand. L. Rev. 1073.

Attorney General Opinions. Provision of this section prohibiting vintners from making mail order sales of wine to retail customers does not violate the commerce clause of the United States Constitution, OAG 04-010 (1/30/04).

Tennessee resident who makes an onsite purchase of wine at an out-of-state winery, is not permitted by 27 U.S.C. § 124 to use a common carrier to ship such wine back to Tennessee, OAG 09-015 (2/24/09).

NOTES TO DECISIONS

1. Constitutionality.

Tennessee’s ban on the direct shipment of alcoholic beverages (including wine) to consumers is valid.Jelovsek v. Bresden, 482 F. Supp. 2d 1013, 2007 U.S. Dist. LEXIS 23814 (E.D. Tenn. Mar. 30, 2007), aff'd in part and vacated in part, Jelovsek v. Bredesen, 545 F.3d 431, 2008 FED App. 0386P (6th Cir.), 2008 U.S. App. LEXIS 22295 (6th Cir. Tenn. 2008).

Tennessee's ban on direct shipment of alcoholic beverages, including wine, to consumers, is valid because it applies equally to in-state and out-of-state wineries. Jelovsek v. Bredesen, 545 F.3d 431, 2008 FED App. 386P, 2008 U.S. App. LEXIS 22295 (6th Cir. Oct. 24, 2008).

2. Permit Not Required in Wet County.

There is no provision in the statute requiring one transporting liquor in a wet county to have a permit. Chadwick v. State, 201 Tenn. 57, 296 S.W.2d 857, 1956 Tenn. LEXIS 465 (1956).

57-3-403. Transportation in quantities in excess of five gallons — Bond — Bill of lading — Off-premises consumption.

  1. The transportation of alcoholic beverages as defined in § 57-3-101, within, into, through, or from this state in quantities in excess of five gallons (5 gals.) is permitted only in conformity with this section or as otherwise permitted in this chapter:
    1. Before any person shall transport any alcoholic beverages within, into, through, or from this state, except by means of common carrier, such person shall post with the commission a bond with approved surety payable to the state of Tennessee in the penalty of one thousand dollars ($1,000), upon condition that such person will not unlawfully transport or deliver any alcoholic beverages within, into, through, or from this state, and evidence that the required bond has been posted shall accompany the alcoholic beverages at all times during transportation. No such bond shall be required of any person licensed under this chapter to sell alcoholic beverages at wholesale when such alcoholic beverages are being transported in a vehicle belonging to the licensee;
    2. Where alcoholic beverages are desired to be transported within, into, or through or from this state, such transportation shall be engaged in only when in accordance with this section or as otherwise permitted in this chapter, viz:
      1. There shall accompany such alcoholic beverages at all times during transportation, a bill of lading or other memorandum of shipment signed by the consignor, showing an exact description of the alcoholic beverages being transported; the name and address of the consignor; the name and address of the consignee; and the route to be traveled by such vehicle while in Tennessee. Such route must be the most direct route from the consignor's place of business to the place of business of the consignee;
      2. Vehicles transporting alcoholic beverages shall not vary from the route specified in the bill of lading or other memorandum of shipment;
      3. The name of the consignor on any such bill of lading or other memorandum of shipment shall be the name of the true consignor of the alcoholic beverages being transported, and such consignor shall only be a person who has a legal right to make such shipment. The name of the consignee on any such bill of lading or memorandum of shipment shall be the name of the true consignee of the alcoholic beverages being transported, who has previously authorized in writing the shipment of the alcoholic beverages being transported and who has legal right to receive such alcoholic beverages at the point of destination shown on the bill of lading or other memorandum of shipment; and
      4. The driver or person in charge of any vehicle covered by any bond posted with the commission under this section shall, when requested by any representative or agent of the commission or any person having police authority, exhibit to such person the bill of lading or other memorandum of shipment covering the cargo of such vehicle;
    3. An alcoholic beverages wholesale licensee who also carries on a beer wholesale operation as provided by § 57-3-203(b)(2) may lawfully transport alcoholic beverages and beer in the same vehicle; provided, that all other legal requirements applicable to such transportation are satisfied.
  2. Notwithstanding any provision of this section or title 39 to the contrary, in any jurisdiction wherein the retail sale of alcoholic beverages for consumption off the premises has been legalized, it shall be lawful to receive, possess and transport alcoholic beverages if all appropriate taxes as required by law have been paid upon such alcoholic beverages.

Acts 1945, ch. 167, § 9; C. Supp. 1950, § 6648.17; impl. am. Acts 1963, ch. 257, § 37; T.C.A. (orig. ed.), § 57-139; Acts 1982, ch. 614, § 1; 2009, ch. 434, §§ 8, 9; 2014, ch. 554, § 25.

Textbooks. Tennessee Jurisprudence, 16 Tenn. Juris., Intoxicating Liquors, §§ 15, 21, 28.

NOTES TO DECISIONS

1. Confiscation for Noncompliance with Section.

Although commission had issued permit authorizing defendant to transport whiskey, his truck and its contents were properly confiscated where he violated statute by deviating from shortest route to destination, having no bill of lading signed by consignor, and delivering to consignee without legal right to receive shipment. Evans v. Pearson, 193 Tenn. 528, 246 S.W.2d 964, 1952 Tenn. LEXIS 321 (1952).

Where officers observed truck being loaded with whiskey at a point in another state some distance from warehouse from a “feeder truck” under suspicious circumstances, and officers continuously followed the truck until it crossed the Tennessee state line where they stopped the truck and confiscated the whiskey because the transportation was not in compliance with this section, the seizure was legal. Kizer v. Ward, 195 Tenn. 200, 258 S.W.2d 759, 1953 Tenn. LEXIS 322, 1953 Tenn. LEXIS 323 (1953).

57-3-404. Regulations for purchase and sale of intoxicating liquors — Wholesalers — Check cashing — Ground floor location — Credit sales.

  1. It is unlawful for any person in this state to buy any alcoholic beverages herein defined from any person, who, to the knowledge of the buyer, does not hold the appropriate license under the laws of this state authorizing the sale of such beverages to the buyer.
  2. No retailer shall purchase any alcoholic beverages from anyone other than a licensed wholesaler, nor shall any wholesaler sell any alcoholic beverages to anyone other than a licensed retailer or retail food store licensed to sell wine pursuant to part 8 of this chapter or a licensed wholesaler; provided, that such alcoholic beverages sold by one (1) wholesaler to another wholesaler shall be transported by common carrier or by vehicle owned or leased and operated by either the consignor wholesaler or the consignee wholesaler.
  3. No manufacturer or distiller shall sell any alcoholic beverages to any person in this state except a licensed wholesaler and to another manufacturer or distiller, and no manufacturer shall hold a wholesaler's license.
    1. No alcoholic beverage for sale to the retailer, or the retailer's representative, shall be sold except by a licensed wholesaler, who sells for resale on the wholesaler's premises and who carries on no other business, directly or indirectly, and whose wholesale business in alcoholic beverages is not operated as an adjunct to, or supplementary to, the business of any other person, either by way of lease of the wholesale premises or otherwise, for any business other than that permitted by the terms of such wholesaler's wholesale license.
    2. Notwithstanding the limitations and restrictions imposed by this section, a wholesaler may invest its business assets in other businesses, and may engage in the sale and distribution of products other than alcoholic beverages; provided, that gross revenues from such other businesses and from the sale of products other than alcoholic beverages may not exceed fifty percent (50%) of a wholesaler's total gross revenues.
    3. A licensed alcoholic beverages wholesaler may lawfully engage in activities covered by chapter 5 of this title, as provided by § 57-3-203(b)(2), without regard to the amount of gross revenues produced by such operation. Such wholesaler may, at the wholesaler's discretion, use the same warehouse and other facilities, vehicles and employees in both operations; provided, that all legal requirements applicable to such operations are satisfied with respect to each operation.
    1. No retail licensee shall operate its business involving the sale of wine, beer or other alcoholic beverages in connection with the wholesale distribution of wine, beer or other alcoholic beverage nor shall such licensee sell its wine, beer or other alcoholic beverage for purposes of resale.
    2. Notwithstanding subsection (a), beginning July 1, 2014, a retail licensee holding a license issued under § 57-3-204 shall be permitted to sell at retail beer and other malt beverages, subject to the restriction in [former] § 57-3-806(e). No permit or license other than the license issued pursuant to § 57-3-204 shall be required for the licensed retailer to engage in such sales of beer and other malt beverages and the issuer of that license has the authority to enforce any laws related to such sales.
    3. A retail licensee shall be permitted to cash a check or other negotiable instrument for a fee when such service is made available to a person over twenty-one (21) years of age. No postdated check shall be cashed by a licensee under this section.
    4. Beginning July 1, 2014, a retail licensee shall also be permitted to sell at retail items related to or incidental to the use, consumption, dispensing or storage of alcoholic beverages, together with merchandise and supplies related to special events or parties, subject to the restriction in [former] § 57-3-806(e). Such items may include, but are not limited to:
      1. Newspapers, magazines, publications, videos and other media related to alcoholic beverages or food;
      2. Utensils and supplies related or incidental to the use, consumption, dispensing or storage of alcoholic beverages, including, without limitation, corkscrews, beverage strainers, pourers, flasks, jiggers, stirrers, wine racks, wine refrigerators, wine cellars, decanters, carafes, glassware, ice crushers, bottle openers, can openers, and devices to maximize oxidation in uncorked wine bottles and other items used in connection with the consumption, storage or dispensing of alcoholic beverages;
      3. Gift cards, packages and baskets that include alcoholic beverages and nonalcoholic items;
      4. Nonalcoholic beverages;
      5. Kegs and growlers, whether empty or filled with beer, wine or alcoholic beverages, on the licensed premises;
      6. Concentrates and ingredients used in the preparation of mixed alcoholic beverages;
      7. Beer and wine-making kits;
      8. Products and supplies related to beer and wine-making;
      9. Lemons, limes, cherries, olives and other food items used in the preparation or garnishment of alcoholic beverages or mixed alcoholic beverages;
      10. Peanuts, pretzels, chips, cheese, crackers, appetizers and other snack foods;
      11. Beverage coolers, ice chests and ice in any form;
      12. Party supplies, party decorations, gift bags, greeting cards and other items for parties and special events;
      13. Articles of clothing and accessories imprinted with advertising, logos, slogans, trademarks or messages related to alcoholic beverages;
      14. Combined packages containing multiple alcoholic beverages;
      15. Cigarettes, cigars and lighters and other smoking or tobacco related products; and
      16. Lottery tickets if the retailer's application is approved by the Tennessee education lottery corporation as provided in § 4-51-115(e).
    5. A retail licensee may sell nonalcoholic products to persons under twenty-one (21) years of age including gift cards.
  4. No wholesale or retail store shall be located except on the ground floor, and it may have two (2) main entrances opening on a public street, and such place of business shall have no other entrance for use by the public except as hereafter provided. When a wholesale or retail store is located on the corner of two (2) public streets, such wholesale or retail store may maintain a door opening on each of the public streets. Any sales room adjoining the lobby of a hotel or other public building may maintain an additional door into such lobby so long as same shall be open to the public. Every wholesale and retail store shall be provided with whatever entrances and exits may be required by existing or future municipal ordinances. When the location of a wholesale or retail liquor store is authorized to be located or operated within an established shopping center or shopping mall, and such liquor store cannot and does not have a main entrance or door opening onto a public street, but the main entrance or door would open or front on a shopping center parking area, the commission in its discretion may approve the issuance of a liquor license to cover such location within the shopping center or shopping mall, irrespective of the fact that the main entrance or door does not or would not open onto a public street.
    1. No holder of a license for the sale of alcoholic beverages for wholesale or retail shall sell, deliver, or cause, permit or procure to be sold or delivered, any alcoholic beverages on credit, except that holders of wholesale licenses may sell on not more than ten (10) days' credit.
    2. The ten-day period begins from delivery and receipt by the retail licensee. The ten-day period cannot include any day that the wholesaler is not open to make deliveries, receive payment or receive mail.
    3. Any suspension of deliveries is a credit decision to be made by a wholesaler and a retail licensee.
    4. A wholesaler shall be permitted to communicate with another wholesaler about the account status of any retail licensee.
    5. Wholesalers shall advise the commission of any failure of a retailer to comply with this subsection (g).
    6. The commission shall be permitted to post the account status of a retail licensee with any wholesaler on its website.
    7. This subsection (g) shall not apply to nonalcoholic products.
    1. No alcoholic beverages shall be sold for consumption on the premises of the seller except as provided in §§ 57-4-101 — 57-4-203, and except as may be permitted by the regulations of the commission for the purpose of conducting consumer educational seminars by a licensee under § 57-3-204, conducted on the premises of a business licensed pursuant to §§ 57-4-101 — 57-4-203. A wholesaler licensed pursuant to § 57-3-203 or a person holding a permit as a representative or sales person pursuant to § 57-3-203(d) may conduct a sales demonstration on the premises of a licensed retailer and, for such limited purpose, may provide free samples to the employees of a licensed retailer for consumption on such premises. A retail licensee may conduct such a sales demonstration for the persons employed by such licensee holding permits issued pursuant to [former] § 57-3-204(c) using products and samples provided by a wholesaler or wholesaler sales representative notwithstanding the absence of the wholesaler or wholesaler sales representative. All such sales demonstrations permitted consumption shall be permitted only for sales, education, and promotional purposes and no one other than a retail licensee, a person holding a permit issued pursuant to [former]§ 57-3-204(c), a wholesaler or a wholesaler sales representative, or a person holding a permit issued pursuant to § 57-3-202(d) may be present in the room where such demonstration is conducted or may receive a sample for consumption.
      1. A retail licensee may offer complimentary samples of the products it sells for tastings to be held on the premises of the retail licensee. Such tastings shall be for sales, education and promotional purposes. No person holding a license under § 57-3-203 shall, directly or indirectly, provide any products, funding, labor, support or reimbursement to a retailer for the consumer tastings authorized by this subdivision (h)(2).
        1. The tastings may be held at the option of the retail licensee during the hours the retail licensee is open for business, without filing any notice other than as provided in subdivision (h)(2)(B)(ii) with the commission, and no charge or fee may be assessed by the commission for a retail licensee to offer such complimentary samples.
        2. With its annual renewal, the retail licensee shall notify the commission of its intention to conduct tastings during the year on the premises of the retail licensee. If following the date the license is renewed, the retail licensee makes a determination to offer tastings, the licensee shall notify the commission of its intention to conduct tastings for the remainder of the year.
      2. The size of each sample shall be no greater than approximately two ounces (2 oz.) for each wine or high alcohol content beer sample and no greater than approximately one-half ounce (½ oz.) for each liquor sample. It is the responsibility of the retail licensee to limit the number of tastings per customer and the number of products available for tasting.
      3. Notwithstanding any law or rule to the contrary, a retail licensee or employee of the licensee may participate in tastings.
      4. A server permit is not required for employees conducting tastings if the employee has a permit pursuant to § 57-3-703; provided, that every retail licensee which offers tastings is encouraged to ensure that any employee who is involved with the tastings understands that a violation of § 57-3-406(c) and (d) and § 57-3-412 related to retail sales apply equally to those customers who participate in the tastings.
      5. A supplier may provide, through licensed wholesalers, products for tasting purposes by a retail licensee.
  5. No wholesaler may provide a discount or other reduction in price to a retailer or retail food store wine licensee by virtue of the sales made to any other licensee. Any discount or pricing made available to a retailer or retail food store wine licensee shall be made available on the same terms and conditions to other retailers and food store wine licensees within the same jurisdiction. Any quantity discounts provided by wholesalers to any retailer licensed under this chapter or any licensee licensed under chapter 4 of this title cannot be cumulative in nature, but can be based only upon products delivered contemporaneously. No retail food store wine licensee may receive any remuneration, by whatever name, at a corporate office located inside or outside this state that affects the profitability of wine or beer sales in this state, that is not made available to all retail licensees or other retail food stores licensed to sell wine or beer in this state.

Acts 1939, ch. 49, §§ 5, 11, 14; 1945, ch. 48, § 1; 1945, ch. 167, § 6; C. Supp. 1950, §§ 6648.15-6648.17 (Williams, §§ 6648.8, 6648.14, 6648.17); Acts 1955, ch. 347, § 1A; 1967, ch. 211, § 2; 1970, ch. 469, § 2; 1971, ch. 72, § 1; modified; T.C.A. (orig. ed.), § 57-140; Acts 1983, ch. 454, § 1; 1993, ch. 157, § 1; 1997, ch. 35, § 1; 1998, ch. 765, § 3; 2002, ch. 672, § 2; 2011, ch. 448, § 19; 2012, ch. 947, § 2; 2014, ch. 554, §§ 2, 10, 14, 17, 19, 26, 29; 2017, ch. 443, § 6.

Compiler's Notes. Section 57-3-806(e), referred to in this section, was deleted by Acts 2016, ch. 1068, § 6.

Section 57-3-204(c), referred to in this section, expired effective July 1, 2016.

Textbooks. Tennessee Jurisprudence, 16 Tenn. Juris., Intoxicating Liquors, §§ 2, 8, 15, 28.

Attorney General Opinions. Licensed wholesalers of alcoholic beverages may extend up to 10 days’ credit to licensed retailers other than retail food store wine licensees. OAG 16-18, 2016 Tenn. AG LEXIS 17 (5/9/2016).

NOTES TO DECISIONS

1. Constitutionality.

Tennessee’s ban on the direct shipment of alcoholic beverages (including wine) to consumers is valid.Jelovsek v. Bresden, 482 F. Supp. 2d 1013, 2007 U.S. Dist. LEXIS 23814 (E.D. Tenn. Mar. 30, 2007), aff'd in part and vacated in part, Jelovsek v. Bredesen, 545 F.3d 431, 2008 FED App. 0386P (6th Cir.), 2008 U.S. App. LEXIS 22295 (6th Cir. Tenn. 2008).

2. Transactions Between Wholesalers.

Ownership of all of capital stock of wholesale liquor company by second wholesale liquor company does not change fact that the two companies are two separate entities, and allegation that transaction did not amount to a sale for the reason that shipping wholesaler owned all the stock in the receiving wholesaler and was shipping merely to replenish stock, did not make shipment of whiskey through dry county lawful. In re A-1 Liquor Distributors, Inc., 37 Tenn. App. 661, 269 S.W.2d 785, 1953 Tenn. App. LEXIS 119 (Tenn. Ct. App. 1953).

3. Entrance.

An opening two feet square in the rear of a liquor store through which large quantities of liquor were delivered was an entrance within the meaning of the term in this section and constituted sufficient ground for the revocation of the dealer's license. Terry v. Evans, 189 Tenn. 345, 225 S.W.2d 255, 1949 Tenn. LEXIS 436 (1949).

57-3-405. Solicitation of business restricted.

It is unlawful for any representative, employee, or agent of any distiller, rectifier or manufacturer, to solicit business from anyone in this state except those holding a wholesaler's license to do business in this state.

Acts 1939, ch. 49, §§ 12, 13; C. Supp. 1950, §§ 6648.16, 6648.19 (Williams, §§ 6648.15, 6648.16); T.C.A. (orig. ed.), § 57-141; Acts 2014, ch. 554, § 31.

57-3-406. Regulation of retail sales.

      1. Except for retailers licensed under § 57-3-204, no person, corporation or other entity shall, directly or indirectly, operate any licensed retail establishment selling alcoholic spirituous beverages, not including wine, for off-premises consumption in this state.
      2. “Indirectly” means any kind of interest in such a retail business by way of stock ownership, loan, partner's interest or otherwise.
      3. A landlord shall be deemed to have an indirect interest in such a retail business when the lease agreement is based upon a percentage of profits or any other factor based upon sales of alcoholic beverages by the tenant as distinguished from being simply an interest in land for a period of time at a definite rate.
    1. Except as provided in this subsection (a), nothing shall prohibit the holder of a retail license from having more than one (1) retail license; provided, however, that the holder of a retail license shall not have more than two (2) retail licenses. If the commission has issued more than two (2) licenses to any person prior to April 12, 2016, such person shall be allowed to continue to have all such licenses and may renew all such licenses.
    2. In any municipality or county in which the issuance of two (2) or more retail licenses have been authorized under § 57-3-208(c), no retail licensee shall hold more than fifty percent (50%) of the licenses authorized for issuance in such municipality or county.
    3. For five (5) years beginning January 1, 2014, no retail license shall be issued to any applicant for a new location that is within one thousand five hundred feet (1,500') of an existing operating establishment holding a license issued pursuant to § 57-3-204 as of July 1, 2014, (an “existing licensed premises”) if the applicant for such new retail license already holds one (1) or more retail licenses issued under § 57-3-204, unless the commission receives the written consent from each retail licensee owning an existing licensed premises within one thousand five hundred feet (1,500') of such new location. Notwithstanding any law to the contrary, the holder of one (1) or more retail licenses issued under § 57-3-204 may purchase the business or assets of an existing licensed premises and obtain a retail license to operate such existing licensed premises, as the same may be expanded or modified, from time to time. Nothing in this subdivision (a)(4) shall be deemed to prohibit a retailer licensed under § 57-3-204 from obtaining a new or replacement license in connection with the relocation of an existing licensed premises, as long as the new location is within the jurisdiction of the municipality or county issuing the certificate required under § 57-3-208 for such existing licensed premises.
  1. Nothing in this chapter shall prohibit a retailer from offering a discount in such manner as the retailer deems appropriate as long as the discount being offered is not below the cost paid by the retailer to purchase the alcoholic beverages from the wholesaler.
  2. No retailer shall sell any alcoholic beverages or beer to any person who is visibly intoxicated, nor shall any retailer selling alcoholic beverages or beer sell to any person accompanied by a person who is visibly intoxicated.
    1. A retailer or any employee thereof shall not make or permit to be made any sales of alcoholic beverages or beer to minors. Prior to making a sale of alcoholic beverages for off-premises consumption, the adult consumer whose physical appearance does not reasonably demonstrate an age of fifty (50) years or older must present to the retailer or any employee of the retailer a valid, government-issued document, such as a driver license or other form of identification deemed acceptable to the retailer that includes the photograph and birth date of the adult consumer attempting to make an alcoholic beverage purchase. Persons exempt under state law from the requirement of having a photo identification shall present identification that is acceptable to the retailer. The retailer or employee shall make a determination from the information presented whether the purchaser is an adult. In addition to the prohibition of making a sale to a minor, no sale of alcoholic beverages for off-premises consumption shall be made to a person whose physical appearance does not reasonably demonstrate an age of fifty (50) years or older who does not present such a document or other form of identification to the license holder or any employee of the license holder in a face-to-face transaction.
    2. A violation of subdivision (d)(1) is a Class A misdemeanor.
    3. The commission may, upon finding that a licensee has violated subdivision (d)(1) two (2) or more times during any two-year period, and for good cause shown, fine the licensee not more than ten thousand dollars ($10,000) and require retraining of all employees of the licensee under the supervision of the commission in lieu of suspending or revoking the license of the licensee.
  3. No retail store shall sell, give away, or otherwise dispense alcoholic beverages except between the hours of eight o'clock a.m. (8:00 a.m.) and eleven o'clock p.m. (11:00 p.m.) on Monday through Saturday and between ten o'clock a.m. (10:00 a.m.) and eleven o'clock p.m. (11:00 p.m.) on Sunday.
  4. Except as provided in § 57-3-404(e)(4)(E), no retailer of alcoholic beverages shall keep or permit to be kept upon the licensed premises any alcoholic beverages in any unsealed bottles or other unsealed containers except such open bottles and containers of damaged and unmarketable product retained by the retail licensee for purpose of return to a wholesaler or such open bottles and containers required for conducting a sales demonstration as permitted by § 57-3-404(h).
  5. No retailer as herein defined shall own, store or possess upon the licensed premises any merchandise unless the retailer shall also possess such documentation as prescribed by the commission to demonstrate that the taxes imposed in this chapter have been paid. No retailer may store any alcoholic beverages, wine, or beer at any location other than the licensed premises and the retailer shall not hold, store, or accept delivery of any products intended for another retailer.
  6. Notwithstanding subsection (e), a retailer shall not sell or give away any alcoholic beverages on Christmas, Thanksgiving, or Easter.
  7. No retail food store shall keep, or permit to be kept, upon the licensed premises any wine in any unsealed bottles or other unsealed containers except such open bottles and containers of damaged and unmarketable product retained by the retail food store for purpose of return to a wholesaler. This subsection (i) shall not apply to the premises within a retail food store that has a license under chapter 4 of this title.
    1. Notwithstanding any provision of this title to the contrary, retailers licensed under § 57-3-204 are authorized, for a fee or without a fee, to provide, within the state, consulting services related to alcoholic beverages and to the products, merchandise, and supplies that the retailer is authorized to sell under § 57-3-404(e), and may supply, sell, deliver, and install products authorized to be sold by the retailer to locations outside of the licensed premises.
    2. Any licensee making a delivery of alcohol, wine, or beer is subject to subsections (c) and (d) except that no person receiving delivery of alcohol, wine, or beer shall be required to purchase such items at the physical location of the retailer. The licensee shall require a valid, government-issued document, such as a driver license or other form of identification deemed acceptable to the retailer that includes the photograph and birth date of the person receiving the delivery and that shall be deemed sufficient to meet the requirements of this subdivision (j)(2) and subsection (d). A record of all deliveries shall be maintained in writing and must contain all information concerning the recipient, products delivered, the time of delivery, and place of delivery.
    3. Any delivery made by a retailer pursuant to this subsection (j) must be made only to the physical address indicated by the individual placing the delivery order. The delivery must be documented by a verification of the delivery signed by the recipient.
    1. Except as otherwise provided in subdivision (k)(3), notwithstanding any law or rule to the contrary, a delivery service that delivers prepared food from restaurants or food from a retailer to customers as part of the delivery service's business is authorized to deliver sealed packages of alcoholic beverages or beer or both sold by a retailer licensed under § 57-3-204 to the delivery service's customers and to deliver sealed packages of beer sold by an off-premise retail permittee licensed under § 57-5-103 to the delivery service's customers during the hours that these products may legally be sold if:
      1. The amount of alcoholic beverages or beer delivered to a customer is in such an amount to satisfy the customer's order; provided, however, if an amount ordered exceeds two gallons (2 gal.), then the delivery driver shall have available for inspection by a commission representative or other law enforcement official, a copy of the customer's order indicating the:
        1. Name of the customer and the name of the recipient of the alcoholic beverages or beer;
        2. Address where the alcoholic beverages or beer is to be delivered; and
        3. Amount of the alcoholic beverages or beer to be delivered;
      2. At least fifty percent (50%) of the delivery service's gross sales come from the delivery of food products or prepared food;
      3. Any delivery service employee who delivers alcoholic beverages or beer is twenty-one (21) years of age or older and is licensed pursuant to § 57-3-225;
      4. The delivery service is licensed pursuant to § 57-3-224;
      5. The delivery service has a written agreement with the retailer or permittee to deliver the retailer's or permittee's alcoholic beverages or beer to customers;
      6. Any delivery service employee, who delivers alcoholic beverages or beer, requires the customer to show a valid, government-issued document, such as a driver license or other form of identification deemed acceptable to the employee that includes the photograph and birth date of the customer before the customer is allowed possession of the alcoholic beverages or beer; and
      7. Any delivery made by a delivery service is made only to the physical address indicated by the individual placing the delivery order. The delivery must be documented by a verification of the delivery signed by the recipient.
    2. A delivery service described in subdivision (k)(1) shall not be prohibited from charging a fee either to customers, retailers, or beer permittees with whom the delivery service has previously entered into a written agreement as required by subdivision (k)(1)(E) when delivering sealed packages of alcoholic beverages or beer sold by a retailer or beer permittee.
    3. If a delivery service is delivering alcoholic beverages or beer purchased from a retailer in accordance with subdivision (k)(1), the delivery service shall not deliver the alcoholic beverages or beer to a customer who resides or is located at the time of the delivery at a distance greater than one hundred (100) miles from the licensed premises of the retailer at which the alcoholic beverages or beer was purchased.

Acts 1939, ch. 49, §§ 11, 12; 1943, ch. 99, § 1; 1945, ch. 167, § 8; C. Supp. 1950, §§ 6648.15, 6648.16 (Williams, §§ 6648.14, 6648.15); Acts 1970, ch. 469, § 3; 1970, ch. 518, § 1; T.C.A. (orig. ed.), § 57-142; Acts 1981, ch. 479, § 1; 1984, ch. 746, § 2; 1992, ch. 608, § 8; 1995, ch. 223, § 1; 2002, ch. 672, § 1; 2009, ch. 208, § 1; 2012, ch. 947, § 4; 2014, ch. 554, §§ 8, 9, 12, 18, 28; 2014, ch. 861, § 16; 2015, ch. 285, § 1; 2015, ch. 428, §§ 3, 4; 2016, ch. 787, §§ 2, 3; 2016, ch. 898, § 2; 2016, ch. 1045, §§ 5-8; 2016, ch. 1068, §§ 4, 5; 2018, ch. 765, § 5; 2018, ch. 783, §§ 1, 2; 2018, ch. 933, §§ 1, 2, 5.

Amendments. The 2018 amendment by ch. 765 inserted “or food from a retailer” in the introductory language of (k)(1).

The 2018 amendment by ch. 783 rewrote (e) which read, “No retailer shall sell or give away any alcoholic beverage between eleven o'clock p.m. (11:00 p.m.) on Saturday and eight o'clock a.m. (8:00 a.m.) on Monday of each week. No retail store shall sell, give away or otherwise dispense alcoholic beverages except between the hours of eight o'clock a.m. (8:00 a.m.) and eleven o'clock p.m. (11:00 p.m.) on Monday through Saturday. The store may not be open to the general public except during regular business hours. Likewise, all retail liquor stores shall be closed for business on Thanksgiving Day and Christmas Day.” and rewrote (h) which read, “No retailer shall sell or give away any alcoholic beverages on the following holidays: Christmas, Thanksgiving, Labor Day, New Year's Day and the Fourth of July.”

The 2018 amendment by ch. 933 added the last sentence in (g); and added (j)(3) and (k)(1)(G).

Effective Dates. Acts 2018, ch. 765, § 8. July 1, 2018.

Acts 2018, ch. 783, § 14. April 20, 2018.

Acts 2018, ch. 933, § 7. July 1, 2018.

Cross-References. Penalty for Class A misdemeanor, §40-35-111.

Textbooks. Tennessee Jurisprudence, 16 Tenn. Juris., Intoxicating Liquors, §§ 8, 9, 12, 15.

Law Reviews.

One Too Many: Sellers, Servers Must Know “How Much Is Too Much” to Avoid Alcohol Related Injuries (Mike Faulk), 43 Tenn. B.J. 12 (2007).

Sunday, the Sabbath, and the Blue Laws (Donald Franklin Paine), 30 Tenn. L. Rev. 249.

Attorney General Opinions. Hours for the sale of beer in a municipality located within a Tennessee River resort district.  OAG 10-92, 2010 Tenn. AG LEXIS 98 (8/17/10).

The statutory provisions that prohibit retail sales by Tennessee liquor stores on Sundays and holidays but permit Tennessee distilleries to make retail sales on Sundays and holidays do not violate the Commerce Clause or equal protection guarantees. OAG 16-08, 2016 Tenn. AG LEXIS 8 (3/1/2016).

NOTES TO DECISIONS

1. Public Policy.

The public policy of this state is to prevent minors from purchasing, possessing, or imbibing alcoholic beverages. Brookins v. Round Table, Inc., 624 S.W.2d 547, 1981 Tenn. LEXIS 503 (Tenn. 1981), superseded by statute as stated in, Biscan v. Brown, — S.W.3d —, 2003 Tenn. App. LEXIS 875 (Tenn. Ct. App. Dec. 15, 2003).

With the enactment of T.C.A. §57-3-406, the legislature clearly established a public policy against allowing a retailer from operating a second retail business. Ledbetter v. Townsend, 15 S.W.3d 462, 1999 Tenn. App. LEXIS 642 (Tenn. Ct. App. 1999).

2. Civil Actions.

A person, who has the capacity and judgment to act responsibly in his own behalf, cannot recover damages where he actively contributes to the intoxication of another and the intoxication is the proximate cause of the injury that is the subject of the legal action. Brookins v. Round Table, Inc., 624 S.W.2d 547, 1981 Tenn. LEXIS 503 (Tenn. 1981), superseded by statute as stated in, Biscan v. Brown, — S.W.3d —, 2003 Tenn. App. LEXIS 875 (Tenn. Ct. App. Dec. 15, 2003).

Sections 57-10-101 and 57-10-102 governing the liability of sellers of alcohol, rather than the duties imposed by criminal statutes, determine the civil liability of the seller. Worley v. Weigel's, Inc., 919 S.W.2d 589, 1996 Tenn. LEXIS 188 (Tenn. 1996), rehearing denied, — S.W.2d —, 1996 Tenn. LEXIS 255 (Tenn. 1996).

3. —Sales to Minors.

A cause of action exists against a vendor who sells alcoholic beverages to a minor, where harm results therefrom. Brookins v. Round Table, Inc., 624 S.W.2d 547, 1981 Tenn. LEXIS 503 (Tenn. 1981), superseded by statute as stated in, Biscan v. Brown, — S.W.3d —, 2003 Tenn. App. LEXIS 875 (Tenn. Ct. App. Dec. 15, 2003).

4. Purchase of Other Business.

The broad language of T.C.A. §57-3-406 suggests that a retailer who purchases a retail business also indirectly operates such a business; therefore, entering into a contract for the purchase of another retail business is impliedly prohibited by T.C.A. §57-3-406. Ledbetter v. Townsend, 15 S.W.3d 462, 1999 Tenn. App. LEXIS 642 (Tenn. Ct. App. 1999).

57-3-407. Action against commission — Venue.

Any action brought against the commission as such shall be brought in the circuit court of Davidson County.

Acts 1939, ch. 49, § 14; C. Supp. 1950, § 6648.17; impl. am. Acts 1963, ch. 257, § 41; T.C.A. (orig. ed.), § 57-143.

Law Reviews.

The Tennessee Court System — Circuit Court (Frederic S. Le Clercq), 8 Mem. St. U.L. Rev. 241.

57-3-408. Actions by attorney general to recover fees, taxes, penalties.

Whenever any person licensed under this chapter fails to account for or pay over any license fees or taxes or levies by this chapter provided, or defaults in any of the conditions of the person's bond, or whenever any person, whether licensed hereunder or unlicensed, shall have failed or refused to pay any obligations or liability, forfeiture or penalty imposed by this chapter, the commission shall report the same to the attorney general and reporter, who shall immediately institute the necessary action for the recovery of any such license fee, tax, levy, or any sum due the state of Tennessee by reason of any of the provisions of this chapter, and the district attorney general of the circuit is ordered and directed to assist the attorney general and reporter whenever required.

Acts 1939, ch. 49, § 14; C. Supp. 1950, § 6648.17; impl. am. Acts 1963, ch. 257, § 42; T.C.A. (orig. ed.), § 57-144.

Law Reviews.

The Tennessee Court Systems — Prosecution, 8 Mem. St. U.L. Rev. 477.

57-3-409. Investigations by commission.

The commission is authorized to examine the books, papers and records of any wholesaler and dealer in this state for the purpose of determining whether the tax so imposed by this chapter has been fully paid, and shall have the power to investigate and examine, according to law, any premises where any alcoholic beverage is possessed, or stored for the purpose of sale, or sold, for the purpose of determining whether this chapter is being complied with. Any refusal to permit the examination of any of such books, papers, and records, or the investigation and examination of such premises, shall constitute sufficient reason for the revocation of a license or the refusal to issue a license.

Acts 1939, ch. 49, § 13; C. Supp. 1950, § 6648.19 (Williams, § 6648.16); impl. am. Acts 1963, ch. 257, § 43; T.C.A. (orig. ed.), § 57-145.

57-3-410. Grand jury investigations.

To the end that this chapter may be better enforced, the grand juries of this state shall have and are clothed with inquisitorial power to inquire into and ascertain whether or not there has been any violation of this chapter, and to return indictments in proper cases. It shall be the duty of all circuit and criminal court judges to give this law in their charges to the grand juries of the state, and all sheriffs and other peace officers charged with the enforcement of the laws of the state are also required to enforce this chapter.

Acts 1939, ch. 49, § 14; C. Supp. 1950, § 6648.17; T.C.A. (orig. ed.), § 57-146.

Law Reviews.

The Tennessee Court Systems — The Jury System, 8 Mem. St. U.L. Rev. 489.

57-3-411. Contraband goods — Property subject to seizure and sale.

  1. All alcoholic beverages as defined in § 57-3-101 which are or shall be owned or possessed by any person in avoidance, evasion or violation of any of the provisions of this chapter are declared to be contraband goods, and the same may be seized by the alcoholic beverage commission, or any duly authorized representative, agent or employee of the commission, without a warrant, and such goods may be delivered to the commission for sale at public auction to the highest bidder after due advertisement. The proceeds of all such seizures shall be paid by the commission into the state treasury, and ten percent (10%) of such proceeds shall be set aside as expenses for the administration of this section.
  2. Any vehicle, not a common carrier, which may be used for transportation for the purpose of distribution, gift or sale of untaxed alcoholic beverages shall likewise be subject to confiscation and sale, in the same manner as above provided. Should any alcoholic beverages in excess of five gallons (5 gals.) be found in any vehicle without receipts or other prescribed documents demonstrating that the tax under this chapter has been paid, the same shall be prima facie evidence that it was there for gift, sale or distribution.
  3. In all cases of seizure of any alcoholic beverages, or other property subject to forfeiture under this chapter, the officer or other person making the seizure shall proceed as follows:
    1. The officer or other person shall deliver to the person, if any, found in possession of such property, a receipt, showing a general description of the seized goods. A copy of the receipt shall be filed in the office of the commission and shall be open to the public for inspection;
    2. All such property seized and confiscated under this chapter may be sold at public sale by the commissioner of general services when the same has been turned over to the commissioner by the commission as now authorized by law;
    3. Any person claiming any property so seized as contraband may within ten (10) days from the date of seizure, file with the commission at Nashville a claim in writing, requesting a hearing and stating the person's interest in the articles seized. The commission shall set a date for hearing within ten (10) days from the day the claim is filed. Any decision of the commission adverse to any claimant may be reviewed in the manner now provided by law for the review of actions of boards or commissions as prescribed by title 27, chapter 9;
      1. In the event the ruling of the commission is favorable to the claimant, the commission shall deliver to the claimant the alcoholic beverages or other property so seized. If the ruling of the commission is adverse to the claimant, the commission shall proceed to sell such contraband goods in accordance with the foregoing provisions of this section, unless the claimant shall secure a supersedeas under § 27-9-106, or unless the claimant shall give a bond under subdivision (c)(3)(B).
      2. When the ruling of the commission is adverse to the claimant, the alcoholic beverages or property so seized shall be delivered to the claimant. Such claimant shall give a bond payable to the state of Tennessee in an amount double the value of the property seized, with sureties approved by the commission. The condition of the bond shall be that the obligors shall pay to the state, through the commission, the full value of the goods or property seized, unless upon certiorari the decision of the commission shall be reversed and the right of the claimant to such property is judicially determined.
      3. If no claim is interposed, such alcoholic beverages or other property shall be forfeited without further proceedings and the same shall be sold as herein provided. The above procedure is the sole remedy of any claimant, and no court shall have jurisdiction to interfere therewith by replevin, injunction or in any other manner.
  4. If, incidental to a confiscation of contraband as defined herein, there is discovered any beer as defined in § 57-5-101(b) deemed to be held or transported illegally within the purview of § 57-5-409, or any tobacco products deemed to be held or transported illegally within the purview of § 67-4-1020, the confiscating officer is hereby empowered and required to seize such beer or tobacco, notwithstanding the fact that such officer may not otherwise be empowered to take such action under § 57-5-409 or § 67-4-1020. Any beer or tobacco seized pursuant hereto shall be delivered promptly as provided by § 57-5-409 or § 67-4-1020, whichever is appropriate, to the department of revenue for sale or disposition as contraband in accordance with chapter 5 of this title or title 67, chapter 4, part 10, whichever is appropriate.
  5. In all cases of seizure or confiscation of property under this chapter where the commission does not sell such property at public auction, the commission may destroy such property after resolution of the criminal or administrative process; provided, that the property is of nominal value in comparison to the cost of a public sale.

Acts 1939, ch. 49, § 19; C. Supp. 1950, § 6648.20 (Williams, § 6648.22); impl. am. Acts 1959, ch. 9, § 14; Acts 1959, ch. 301, § 1; impl. am. Acts 1961, ch. 97, § 5; impl. am. Acts 1963, ch. 257, § 45; impl. am. Acts 1972, ch. 543, § 7; Acts 1973, ch. 68, § 5; T.C.A. (orig. ed.), § 57-147; Acts 1992, ch. 608, §§ 9-11; 2009, ch. 434, § 10; 2014, ch. 861, § 6; 2017, ch. 147, §§ 15, 17, 18.

Cross-References. Sale on execution, §26-5-107.

Textbooks. Tennessee Jurisprudence, 16 Tenn. Juris., Intoxicating Liquors, §§ 15, 26, 28.

Law Reviews.

The Tennessee Court System — Circuit Court (Frederic S. Le Clercq), 8 Mem. St. U.L. Rev. 241.

NOTES TO DECISIONS

1. Nature of Statute.

Provision of T.C.A. §57-3-411 that such goods “may be seized” is permissive and not mandatory. Casone v. State, 176 Tenn. 279, 140 S.W.2d 1081, 1939 Tenn. LEXIS 122 (1940).

Primarily T.C.A. §57-3-411 is a revenue measure to enforce payment of the liquor tax. Casone v. State, 176 Tenn. 279, 140 S.W.2d 1081, 1939 Tenn. LEXIS 122 (1940).

The “bone dry law,” former § 39-2506 et seq., prohibiting the receiving, possession and transporting from place to place within the state was not repealed by implication by enactment of the local option law, since the purpose of the local option law was to provide exceptions to the general law of exclusion and prohibition to apply under particular conditions and in restricted territory, subject to detailed regulation. Renfro v. State, 176 Tenn. 638, 144 S.W.2d 793, 1940 Tenn. LEXIS 112 (1940).

2. Relation to Other Statutes.

This chapter does not work a repeal by implication of the provisions of the existent provisions of the law relating to the reception, possession and transportation of intoxicating liquors but is in the nature of a proviso to the general statutes of prohibition. Chadrick v. State, 175 Tenn. 680, 137 S.W.2d 284, 1939 Tenn. LEXIS 92 (1940).

This section does not repeal in toto the provisions of T.C.A. §57-9-103 et seq., directing the sheriff and other peace officers to seize intoxicating liquors possessed in violation of the laws of the state and to hold such liquors pending further orders and their disposition by the circuit or criminal court. Casone v. State, 176 Tenn. 279, 140 S.W.2d 1081, 1939 Tenn. LEXIS 122 (1940).

3. Jurisdiction of Commission.

The jurisdiction conferred on the commission to seize contraband liquors and direct a disposition of the same is not exclusive but is concurrent with the jurisdiction of the courts conferred by T.C.A. §57-9-103 et seq.Casone v. State, 176 Tenn. 279, 140 S.W.2d 1081, 1939 Tenn. LEXIS 122 (1940).

4. —Exclusiveness of Jurisdiction Once Attached.

This section contains a provision regulating reclamation procedure before the commission, and provides “the above procedure is the sole remedy of any claimant, and no court shall have jurisdiction to interfere therewith by replevin, injunction or in any other manner,” which prohibition against interference by the courts relates to cases where the commission has seized the liquors or the vehicle; and no court is to interfere with its jurisdiction in such cases after that jurisdiction has attached. Casone v. State, 176 Tenn. 279, 140 S.W.2d 1081, 1939 Tenn. LEXIS 122 (1940).

5. Power and Duties of Sheriff.

Where the sheriff seizes liquor under his authority as a police officer and not as an agent or representative of the commission such liquors remain in his custody until it is determined by the court whether or not they were legally in the possession of the person from whom they were seized and if at that time they are found to be contraband goods the court might then properly entertain an application by the commission to possess the goods and sell them for the benefit of the treasury. Casone v. State, 176 Tenn. 279, 140 S.W.2d 1081, 1939 Tenn. LEXIS 122 (1940).

It is the duty of a sheriff to deliver liquors seized by him to the commission only when the sheriff is acting as agent or representative of the commission. Casone v. State, 176 Tenn. 279, 140 S.W.2d 1081, 1939 Tenn. LEXIS 122 (1940).

Where seizure of intoxicating liquors and truck in which they were contained was under the general authority conferred on the sheriff by T.C.A. §57-9-103 et seq., and not under the revenue statutes, the seizure of the truck was without authority and the court could not direct its holding. Casone v. State, 176 Tenn. 279, 140 S.W.2d 1081, 1939 Tenn. LEXIS 122 (1940).

6. Legality of Possession.

Where a defendant was found in possession of alcoholic beverages on which no tax had been paid and none of the conditions and regulations prescribed by the local option law had been complied with the possession was unlawful within the meaning of the general provisions of the law notwithstanding the fact that the territory in which it was found had been conditionally set aside for lawful possession by local option. Chadrick v. State, 175 Tenn. 680, 137 S.W.2d 284, 1939 Tenn. LEXIS 92 (1940).

7. Extent of Right of Search and Seizure.

Where one of a group of officers entered a public place operated by defendant, purchased a bottle of whiskey from defendant who had no license to sell intoxicating liquors, and then signaled the other officers who entered and arrested defendant who made no protest or demand for a warrant and where upon entry the officers saw a case of whiskey under a bed in an adjoining room and as a result entered and found a large quantity of whiskey in such room, such officers were justified in entering and looking about for additional whiskey and there was never at any time a “search” so as to support the contention of defendant that the whiskey was seized as a result of an unlawful search. McCanless v. Evans, 177 Tenn. 86, 146 S.W.2d 354, 1940 Tenn. LEXIS 15 (1941).

8. Transportation Through State.

Unstamped liquor being transported from Illinois through Tennessee to Mississippi for purpose of sale in that state in violation of the laws of such state was not subject to seizure in Tennessee under this statute as contraband goods but were immune from such seizure as goods in interstate commerce. McCanless v. Graham, 177 Tenn. 57, 146 S.W.2d 137, 1940 Tenn. LEXIS 11 (1941).

Taxicab used in transporting untaxed liquor through the state was subject to seizure under this section even though such vehicle was only being used for transporting such liquor from one state through Tennessee to another state. Dye v. McCanless, 185 Tenn. 18, 202 S.W.2d 657, 1947 Tenn. LEXIS 294 (1947).

9. Failure to Follow Statutory Procedure.

Seizure of car on charge of use in transporting unstamped liquors did not result in forfeiture where statutory procedure for forfeiture was not followed. Wells v. McCanless, 184 Tenn. 293, 198 S.W.2d 641, 1947 Tenn. LEXIS 379 (1947).

10. Disposition of Seized Liquor.

The sale of contraband liquors seized under this section is required. Casone v. State, 176 Tenn. 279, 140 S.W.2d 1081, 1939 Tenn. LEXIS 122 (1940).

Where officers seized a large quantity of whiskey illegally in possession of a person who was not a licensed dealer, such person was not entitled to the return of the whiskey as to do so would make him a criminal when he became repossessed of it. McCanless v. Evans, 177 Tenn. 86, 146 S.W.2d 354, 1940 Tenn. LEXIS 15 (1941).

Despite the acquittal of a defendant from whom liquor was seized, a circuit court had no authority to return the liquor to the defendant, and it had to be sold as contraband in accordance with T.C.A. §§57-9-20157-9-204. Alcoholic Beverage Com. v. Simmons, 512 S.W.2d 585, 1973 Tenn. Crim. App. LEXIS 225 (Tenn. Crim. App. 1973).

11. Levy Against Seized Liquor.

Where, while a prosecution was pending against a judgment debtor for unlawful possession of intoxicating liquor in his residence from which it was taken by officers, a garnishment execution was levied on such liquor, it was held that if it be found upon the criminal trial that the judgment debtor was in the lawful possession of the liquor, the judgment creditor has acquired a lien upon the same by the levy of the execution by garnishment, but if he is found to have been in possession unlawfully, even though accused is acquitted because of an illegal search, or for lack of legal evidence upon which to convict him, then the commission may intervene by petition asserting its jurisdiction to possess the liquors and sell them for the benefit of the treasury. Carmack v. Nichols, 181 Tenn. 551, 181 S.W.2d 977, 1944 Tenn. LEXIS 276 (1944).

12. Power of Circuit Court to Return Contraband.

Where the Alcoholic Beverage Commission seized contraband liquor from a defendant charged with illegal possession and the charge was nolle prossed, the court held that a jury verdict of acquittal was not binding on the court or the commission with regard to the disposition of the confiscated liquor; that, under this and related statutes, a circuit court had no authority to order the return of the liquor to the defendant; and that the liquor had to be sold as contraband in accordance with T.C.A. §§57-9-20157-9-204. Alcoholic Beverage Com. v. Simmons, 512 S.W.2d 585, 1973 Tenn. Crim. App. LEXIS 225 (Tenn. Crim. App. 1973).

57-3-412. Criminal offenses — Penalties — Perjury — Expunction of records — Enforcement of law — Violations by and relating to minors.

    1. Except as otherwise provided, a violation of this chapter is a Class A misdemeanor.
    2. If any person shall, or shall attempt to, forge or counterfeit, or cause or permit to be forged or counterfeited, any stamp, die, plate, official signature, certificate, evidence of tax payment, license, or other instrument which has been provided or may be hereafter provided, made or used in the pursuance of the execution of this chapter as aforementioned, upon any paper or other material, or shall stamp or mark, or cause to be stamped or marked, any paper, or other material by such forged or counterfeited stamp, die, plate, official signature, certificate, evidence of tax payment, license or other instrument as aforementioned, or shall forge the name or signature of any officer, commissioner, deputy officer, or employee under this chapter or under the rules and the regulations of the commission, or cause the same to be done, or forge or counterfeit, or cause or permit to be forged or counterfeited, any evidence of the payment of any tax provided for in this chapter, with intent to defraud the state of any of the taxes imposed by this chapter, or any provision thereof, or shall in any otherwise, by imitating, restoring, altering, or reusing any stamp or other written evidence of the payment of such taxes knowingly defraud or attempt to defraud the state, or have or retain in such person's possession any of such stamps which are forged or counterfeited, or any such evidence of such payment, or any stamp which has been altered, restored or counterfeited with intent to defraud the state, such person shall be punished for criminal conspiracy.
      1. It is unlawful for any person under the age of twenty-one (21) years to have in such person's possession or to consume any intoxicating liquor or beer for any purpose, whether the same be possessed or consumed in a dry county or a wet county. It is unlawful for any person under twenty-one (21) years of age to transport any intoxicating liquor or beer for any purpose, whether the same be transported in a dry or wet county; provided, that this section shall not be construed as prohibiting any person eighteen (18) years of age or older from transporting, possessing, selling or dispensing intoxicating liquor or beer in the course of such person's employment. For purposes of this subdivision (a)(3), “beer” shall have the same meaning as provided in § 57-6-102.
      2. A violation of subdivision (a)(3)(A) is a Class A misdemeanor.
      3. Any person under twenty-one (21) years of age found to have violated this subdivision (a)(3) shall, regardless of the final disposition of such violation, have the right to have the records, as defined in § 40-32-101, of such violation destroyed after the passage of six (6) months from the date of the violation. Such destruction shall occur upon motion of the person to the court which heard the violation and shall be without cost to such person. No violation of this subdivision (a)(3) may at any time be used against the violator in any criminal proceeding.
    3. Any person who purchases an alcoholic beverage for or at the request of a person under twenty-one (21) years of age commits a misdemeanor and, upon conviction for such person's first such offense, shall be punished by a fine of not less than twenty-five dollars ($25.00) nor more than five hundred dollars ($500), plus all penalties imposed by § 39-15-404. Upon a person's second or subsequent conviction for such offense, such person shall be punished by a fine of not less than fifty dollars ($50.00) nor more than one thousand dollars ($1,000), plus all penalties imposed by § 39-15-404.
      1. It is unlawful for any person who is younger than twenty-one (21) years of age to purchase or attempt to purchase any alcoholic beverage.
      2. A violation of this subdivision (a)(5) is a Class A misdemeanor.
        1. In addition to any criminal penalty established by this section, a court in which a person younger than twenty-one (21) years of age but eighteen (18) years of age or older is convicted of the purchase or attempt to purchase or possession of alcoholic beverages in violation of this section shall prepare and send to the department of safety, driver control division, within five (5) working days of the conviction, an order of denial of driving privileges for the offender.
        2. The court and the department shall follow the same procedures and utilize the same sanctions and costs for a person younger than twenty-one (21) years of age but eighteen (18) years of age or older as provided in title 55, chapter 10, part 7, for offenders younger than eighteen (18) years of age but thirteen (13) years of age or older.
    1. The members of the highway patrol shall be authorized and it shall be their duty to assist the county and municipal police authorities to enforce this chapter, and any other chapter relating to the manufacture, sale or distribution of alcoholic beverages, as defined in § 57-3-101, in any county or municipality, failing to adopt the rights granted under the various provisions of this chapter.
    2. Inspectors, agents or officers appointed by the commission shall be cloaked with and have the duty, power and authority to exercise the same functions and duties as conferred by law upon the highway patrol in the illegal traffic of intoxicating liquors. Inspectors, agents and officers of the commission shall have concurrent authority with the highway patrol in the enforcement of title 55, chapters 7-10 and 50 for the express purpose of enabling the commission properly to enforce the laws and regulations pertaining to traffic in alcoholic beverages.
  1. Any person under twenty-one (21) years of age who knowingly makes a false statement or exhibits false identification to the effect that the person is twenty-one (21) years old or older to any person engaged in the sale of alcoholic beverages for the purpose of purchasing or obtaining the same commits a misdemeanor. In addition to any criminal penalty established by this subsection (c), a court in which a person younger than twenty-one (21) years of age but eighteen (18) years of age or older is convicted under this subsection (c) of a second or subsequent offense shall prepare and send to the department of safety, driver control division, within five (5) working days of the conviction, an order of denial of driving privileges for the offender for a period not to exceed one (1) year. The offender may apply to the court for a restricted driver license. The judge shall order the issuance of a restricted motor vehicle operator's license, in accordance with § 55-50-502. The court and the department shall follow the same procedures and utilize the same costs for a person younger than twenty-one (21) years of age but eighteen (18) years of age or older as provided in title 55, chapter 10, part 7, for offenders younger than eighteen (18) years of age but thirteen (13) years of age or older.
    1. If the person violating this subsection (c) is less than eighteen (18) years of age, that person shall be punished by a fine of fifty dollars ($50.00) and not less than twenty (20) hours of community service work, which fine or penalty shall not be suspended or waived. The fine imposed by this subdivision (c)(1) shall apply regardless of whether the violator cooperates with law enforcement officers by telling them the place the alcohol was purchased or obtained or from whom it was purchased or obtained.
    2. If the person violating this subsection (c) is eighteen (18) years of age or older but less than twenty-one (21) years of age, that person shall be punished by a fine of not less than fifty dollars ($50.00) nor more than two hundred dollars ($200) or by imprisonment in the county jail or workhouse for not less than five (5) days nor more than thirty (30) days. The penalties imposed by this subdivision (c)(2) apply regardless of whether the violator cooperates with law enforcement officers by telling them the place the alcohol was purchased or obtained or from whom it was purchased or obtained.

Acts 1939, ch. 49, § 15; C. Supp. 1950, § 6648.21 (Williams, § 6648.18); Acts 1955, ch. 347, § 4; impl. am. Acts 1959, ch. 9, § 14; Acts 1963, ch. 223, § 1; impl. am. Acts 1963, ch. 257, § 46; 1967, ch. 148, § 1; 1970, ch. 398, § 3; impl. am. Acts 1979, ch. 413, § 1; T.C.A. (orig. ed.), § 57-148; Acts 1984, ch. 1006, §§ 6, 11, 12, 17; 1985, ch. 321, § 1; 1986, ch. 758, § 2; 1986, ch. 788, § 2; 1989, ch. 591, §§ 62, 111, 113; 1991, ch. 473, § 1; 1992, ch. 608, § 12; 2003, ch. 375, § 1; 2006, ch. 900, § 4; 2006, ch. 986, §§ 1, 2.

Code Commission Notes.

The Criminal Sentencing Reform Act of 1989 amended the provisions of §57-3-412(a) relative to violation of local option traffic in intoxicating liquors, but contained no reference to purchases by underaged persons, specified in subdivision (a)(4), or for direct purchases by underaged persons, specified in subsection (c).

Cross-References. Eighteen-year-olds, legal responsibility, alcoholic beverage restrictions on persons under 21, §1-3-113.

False representations by minors, §§57-4-203,57-5-301.

Penalty for Class A misdemeanor, §40-35-111.

Purchase or possession by minors, §57-4-203.

Sales to minors prohibited, §57-4-203.

Textbooks. Tennessee Jurisprudence, 16 Tenn. Juris., Intoxicating Liquors, § 28.

Law Reviews.

Criminal Law and Procedure — 1963 Tennessee Survey (Robert E. Kendrick), 17 Vand. L. Rev. 977.

Attorney General Opinions. Destruction of records—juvenile court—alcohol violations by a minor, OAG 92-68 (12/28/92).

NOTES TO DECISIONS

1. Constitutionality.

The provisions of this section authorizing the highway patrol to assist local authorities in the enforcement of this or any other law relating to alcoholic beverages is not unconstitutional as introducing matter independent of the general subject of the original act but is a natural incident of the purpose of such act which is indicated in the caption as dealing with a general subject of regulation of liquor. Vickers v. State, 176 Tenn. 415, 142 S.W.2d 188, 1939 Tenn. LEXIS 132 (1940).

2. Authority of Highway Patrol.

Provision of this section conferring upon the highway patrol the right to assist county and municipal police authorities in the enforcement of this or any other law relating to alcoholic beverages does not limit the authority of the officers of the highway patrol to those cases in which they are acting in conjunction with the local officers or summoned by the local officers but was intended to assist the body of local officials in enforcement generally of a general law. Vickers v. State, 176 Tenn. 415, 142 S.W.2d 188, 1939 Tenn. LEXIS 132 (1940).

The provisions of this section conferring on the highway patrol the authority “to enforce the provisions of this act or any other act relating to … alcoholic beverages” includes the execution of search warrants. Vickers v. State, 176 Tenn. 415, 142 S.W.2d 188, 1939 Tenn. LEXIS 132 (1940).

3. Charge of Specific Offense.

City warrant and resulting judgment charging defendant generally with violating municipal ordinance which implies violation of this chapter are void as not giving reasonable notice of offense charged, since chapter contains many different acts variously designated as misdemeanors or felonies. Robinson v. Memphis, 197 Tenn. 598, 277 S.W.2d 341, 1955 Tenn. LEXIS 325 (1955).

4. Instructions of Court.

Where defendant was indicted for selling liquor without the license required by §57-3-204, the penalty for which was specified by §57-3-412 as a mandatory fine and discretionary imprisonment, but trial court instructed jury as to punishment as provided in former § 39-2502 for unlawful sale of liquor under bone dry law which specified larger maximum fine and mandatory imprisonment, defendant was entitled to new trial even though fine and imprisonment assessed by jury was within the limits of both of the statutes. Judkins v. State, 224 Tenn. 587, 458 S.W.2d 801, 1970 Tenn. LEXIS 359 (1970).

5. Civil Actions.

Sections 57-10-101 and 57-10-102 governing the liability of sellers of alcohol, rather than the duties imposed by criminal statutes, determine the civil liability of the seller. Worley v. Weigel's, Inc., 919 S.W.2d 589, 1996 Tenn. LEXIS 188 (Tenn. 1996), rehearing denied, — S.W.2d —, 1996 Tenn. LEXIS 255 (Tenn. 1996).

57-3-413. Criminal trespass charge in violation of § 39-14-405.

  1. A person may be charged with a violation of § 39-14-405, if the person is:
    1. Between eighteen (18) and twenty-one (21) years of age;
    2. Visibly intoxicated; or
    3. Otherwise disruptive; and
    4. Such person is asked by the owner or employee of an establishment that is licensed as a retail package store pursuant to § 57-3-204 to leave the premises, and that person remains on the premises.
  2. If a person is a minor under eighteen (18) years of age and is asked by the owner or employee of an establishment that is licensed as a retail package store pursuant to § 57-3-204 to leave the premises, and the minor remains on the premises, such minor commits a delinquent act.

Acts 2012, ch. 899, § 1.

57-3-414. Sale of powdered or crystalline alcohol prohibited — Offense — Penalties.

  1. No person shall sell or offer for sale for human consumption powdered or crystalline alcohol.
  2. Subsection (a) does not apply to any of the following:
    1. Any substance regulated by the food and drug administration in the United States department of health and human services that is not either of the following:
      1. Beer or intoxicating liquor; or
      2. A compound that could be converted into beer or intoxicating liquor;
    2. A medication that requires a prescription; or
    3. An over-the-counter medication.
  3. A violation of subsection (a) is a Class A misdemeanor. In addition to any criminal penalty imposed by this subsection (c), the commission may suspend or revoke any license or permit issued under this title held by any person who violates subsection (a).
  4. As used in this section:
    1. “Over-the-counter medication” means medication that may be legally sold and purchased without a prescription;
    2. “Powdered or crystalline alcohol” means a product that is manufactured into a powdered or crystalline form and that contains any amount of alcohol; and
    3. “Prescription” means an order, formula, or recipe issued in any form of oral, written, electronic, or other means of transmission by a duly licensed practitioner authorized by the laws of this state.

Acts 2015, ch. 311, § 1.

Cross-References. Penalty for Class A misdemeanor, §40-35-111.

Part 5 Municipal Inspection Fees

57-3-501. Municipal inspection fee — Maximum amount — Collection of fees.

    1. A municipality as defined by § 57-3-101 shall have the authority to impose by ordinance an inspection fee upon licensed retailers of alcoholic beverages as defined by § 57-3-101 or upon retail food store wine licensees located within such municipality.
    2. If, pursuant to § 57-3-204(d)(7), a manufacturer of high alcohol content beer obtains a retail license to sell its products which are manufactured on the manufacturer's premise, the governing body of the municipality or county in which such a manufacturer is located shall impose by ordinance or resolution, as appropriate, a fifteen-percent inspection fee to inspect the retail store in which such products are sold by the manufacturer. Such inspection fee shall be imposed on the wholesale price of the high alcohol content beer supplied pursuant to § 57-3-204(d)(7)(B) by a wholesaler for those products manufactured and sold by the manufacturer at its retail store as authorized pursuant to § 57-3-204(d)(7).
  1. The inspection fees shall not exceed eight percent (8%) of the wholesale price of alcoholic beverages supplied by a wholesaler in municipalities located in counties of this state having a population of less than sixty thousand (60,000), according to the 1960 federal census or any subsequent federal census, or in counties that contain a municipal corporation as defined in § 67-6-103(a)(3)(B)(i), notwithstanding subsection (c) to the contrary.
  2. The inspection fees shall not exceed five percent (5%) of the wholesale price of alcoholic beverages supplied by a wholesaler in municipalities located in counties of this state having a population of more than sixty thousand (60,000), according to the 1960 federal census or any subsequent federal census.
  3. Any municipality having a metropolitan form of government and a population of over four hundred fifty thousand (450,000), according to the 1990 federal census or any subsequent federal census, which has levied the inspection fees herein authorized may, by ordinance of its legislative body, designate the county clerk as the collector of the fees for the entire metropolitan taxing jurisdiction.

Acts 1968, ch. 538, §§ 1, 2; 1969, ch. 87, § 1; T.C.A., § 57-165; Acts 1994, ch. 758, § 1; 1999, ch. 218, § 1; 2011, ch. 448, § 17; 2014, ch. 554, § 7.

Compiler's Notes. For tables of population of Tennessee municipalities, and for U.S. decennial populations of Tennessee counties, see Volume 13 and its supplement.

Cross-References. Damaged or unaccepted goods, tax liability, §57-3-109.

Textbooks. Tennessee Jurisprudence, 16 Tenn. Juris., Intoxicating Liquors, §§ 5, 10.

NOTES TO DECISIONS

1. Constitutionality.

Since the municipal inspection fee authorized by this section is collected by the wholesaler only after the retailer has purchased and paid for the alcoholic beverages (pursuant to T.C.A. §57-3-502), the fee does not violate the prohibition against import duties of U.S. Const., art. 1, § 10. Memphis Retail Liquor Dealers' Asso. v. Memphis, 547 S.W.2d 244, 1977 Tenn. LEXIS 555 (Tenn. 1977).

2. Nature of Fee.

Even though the revenue generated by a municipal inspection fee pursuant to this section far exceeds the cost of inspection, the fee is a regulation and not a tax, for alcoholic beverages are a special activity and the fee imposed is actually part of the regulation. Memphis Retail Liquor Dealers' Asso. v. Memphis, 547 S.W.2d 244, 1977 Tenn. LEXIS 555 (Tenn. 1977).

3. Construction with Other Statutes.

Since T.C.A. §57-6-201 deals with wholesalers only it does not preempt this section, which deals with retailers only. Memphis Retail Liquor Dealers' Asso. v. Memphis, 547 S.W.2d 244, 1977 Tenn. LEXIS 555 (Tenn. 1977).

T.C.A. §67-4-701 does not repeal T.C.A. §57-3-501 by implication because that section is an ad valorem tax while this is a fee. Memphis Retail Liquor Dealers' Asso. v. Memphis, 547 S.W.2d 244, 1977 Tenn. LEXIS 555 (Tenn. 1977).

In taxpayers'  action seeking a refund of inspection fees a city erroneously calculated, the trial court did not err by applying T.C.A. §67-1-1807 because payment under protest was not a condition precedent to a suit for the recovery of a tax paid to a municipality; the tax at issue provided no explicit requirement to pay “under protest” but only provided that the inspection fee was to be paid to a municipality. Chuck's Package Store v. City of Morristown, — S.W.3d —, 2016 Tenn. App. LEXIS 446 (Tenn. Ct. App. Feb. 10, 2016).

4. Liquor by the Drink Establishments.

Liquor by the drink establishments are granted a license under T.C.A. §57-4-201, and therefore do not qualify as “retailers” under T.C.A. §57-3-501. Overton Square, Inc. v. Foster, 615 S.W.2d 681, 1981 Tenn. App. LEXIS 492 (Tenn. Ct. App. 1981).

57-3-502. Collection by wholesaler from retailer.

The inspection fee shall be collected by the wholesaler from the retailer following notice given the wholesaler by the municipality that an inspection fee has been imposed by ordinance upon the retailers located within the particular municipality. The inspection fee shall be collected by the wholesaler at the time of the sale or at the time the retailer makes payment for the delivery of the alcoholic beverages.

Acts 1968, ch. 538, § 3; T.C.A., § 57-166.

57-3-503. Monthly report and payment — Reimbursement of wholesalers — Penalty — Audits.

  1. Each wholesaler making sales to retailers located within a municipality imposing an inspection fee shall furnish the municipality a report monthly, which report shall contain a list of the alcoholic beverages sold to each retailer located within the municipality, the wholesale price of the alcoholic beverages sold to each retailer, the amount of tax due, and such other information as may be required by the municipality. The monthly report shall be furnished the municipality imposing the tax not later than the twentieth of the month following which the sales were made. The inspection fees collected by the wholesaler from the retailer or retailers located within each municipality shall be paid to the municipality at the time the monthly report is made. Wholesalers collecting and remitting the above inspection fee to municipalities shall be entitled to reimbursement for this collection service, a sum equal to five percent (5%) of the total amount of inspection fees collected and remitted, such reimbursement to be deducted and shown on the monthly report to the municipality.
  2. Failure to collect or timely report and/or pay the inspection fee collected shall result in a penalty of ten percent (10%) of the fee due the municipality which shall be payable to the municipality imposing the inspection fee.
  3. Municipalities to whom inspection fees are paid shall have authority to audit the records of wholesalers reporting to them in order to determine the accuracy of such reports.

Acts 1968, ch. 538, §§ 4, 5, 7; T.C.A., § 57-167.

57-3-504. Fee to be exclusive — Metropolitan governments.

  1. The inspection fee provided for herein shall be in lieu of all other gross receipt or inspection fees imposed upon wholesalers or retailers of alcoholic beverages by municipalities and no other additional or similar fees shall be imposed by ordinance.
  2. No municipality shall impose any inspection fee or similar tax upon wholesalers based upon sales made to retail dealers located in other municipalities, it being the legislative intent that a municipality shall have authority to impose the inspection fee provided for herein only upon retailers located within the particular municipality imposing the inspection fee.
    1. Notwithstanding anything herein provided to the contrary, the principal municipality, in a county which has adopted the metropolitan form of government under title 7, chapters 1-3, or which may hereafter adopt such form of government, may impose an inspection fee or similar fee, under the authority of chapter 3, part 5 of this title, upon wholesalers based on sales made to licensed retailers located in other but smaller municipalities within the same county as the principal municipality;
    2. “Principal municipality,” for the purpose of this subsection (c), means the largest municipality, or its successor, within such a county in accordance with the 1960 federal census or subsequent federal census;
    3. When such principal municipality imposes such a fee upon wholesalers, they shall collect same from the sales to retailers within the smaller municipalities and remit such collections to the principal municipality unless and until such smaller municipalities adopt by ordinance or resolution, such fees in accordance with the terms of chapter 3, part 5 of this title, and then the wholesalers will remit such collections to the smaller municipalities in accordance with the provisions of such ordinances or resolutions as may be adopted or passed by them.

Acts 1968, ch. 538, § 6; T.C.A., § 57-168.

Textbooks. Tennessee Jurisprudence, 16 Tenn. Juris., Intoxicating Liquors, § 10.

NOTES TO DECISIONS

1. Exclusivity of Fee.

Although this section purports to be exclusive, it does not prevent the legislature from subsequently imposing a privilege tax on the sale of alcohol. Memphis Retail Liquor Dealers' Asso. v. Memphis, 547 S.W.2d 244, 1977 Tenn. LEXIS 555 (Tenn. 1977).

Part 6 Nonresident Seller's Permits

57-3-601. Short title.

This part shall be known as the “Nonresident Liquor Seller's Permit Act of 1981.”

Acts 1981, ch. 157, § 1.

57-3-602. When permit required — Exceptions.

  1. A nonresident seller's permit is required of any manufacturer, distillery, winery, importer, broker, or person which sells or distributes alcoholic beverages to any wholesaler licensed under § 57-3-203 or any manufacturer licensed under § 57-3-202, regardless of whether the sale is consummated inside or outside Tennessee. No such permit is required if such manufacturer, distillery or winery is operating pursuant to § 57-2-104, § 57-3-202, § 57-3-203 or § 57-3-207.
    1. A nonresident seller's permit is also required of any importer, broker, or other entity that imports alcoholic beverages into this state for the purpose of the following:
      1. Warehousing wine and other alcoholic beverage in the state for the purpose of sale to entities legally authorized to purchase such wine and alcoholic beverages outside this state;
      2. Selling wines which are not registered pursuant to § 57-3-301 and which are not capable of being registered in that no qualified manufacturer, winery or distiller exists to approve such registration; provided, that such sales within the state shall be permitted only to wholesalers licensed pursuant to § 57-3-203; and
      3. Selling wines which are registered pursuant to § 57-3-301 but as to which vintages are not available from the manufacturer, winery, or distiller, but such sales shall be permitted only to those wholesalers authorized to distribute such wines by the manufacturer, winery, or distiller as identified on the registration records of the department of revenue.
    2. A nonresident seller licensed under this subsection (b) is not subject to § 57-3-607.
    1. A non-manufacturer non-resident seller's permit is required of any entity that is engaged in marketing, licensing of trademark or trade name, or contracting for the manufacture of any wine, distilled spirit or other alcoholic beverage, where such entity is not directly engaged in the manufacturing, bottling, distilling, blending of such wine, spirit or alcoholic beverage, and is not the holder of a basic permit issued by the alcohol and tobacco tax and trade bureau of the United States department of the treasury as a brewery, distilled spirits plant, or winery. A non-manufacturer non-resident seller's permit under this part may be issued by the commission irrespective of the residence of the entity.
    2. The holder of a non-manufacturer non-resident seller's permit issued under subdivision (c)(1) shall be authorized to market, facilitate the sale of, possess intellectual property rights relating to, or cause to be distributed any wine, distilled spirit or other alcoholic beverage to wholesalers licensed pursuant to § 57-3-203.
    3. The holder of a non-manufacturer non-resident seller's permit may contract with distillers, wineries, and other manufacturers to produce, rectify, bottle or manufacture wine or distilled spirits on its behalf, may ship or cause to be shipped into or within this state alcoholic beverages as an element of sales made to wholesalers licensed under § 57-3-203 and may contract with wholesalers to purchase such products.
    4. Non-manufacturer non-resident seller's permit holders may take title of and store in this state alcoholic beverages and wine from a distiller or winery to which it holds marketing, licensing or trademark rights only if the non-manufacturer non-resident seller's permit holder possesses a basic permit from the alcohol and tobacco tax and trade bureau of the United States department of the treasury, has paid an additional annual fee of three thousand dollars ($3,000) to the commission, and is storing such alcoholic beverages or wine in a location approved by the commission for storage of untaxed alcoholic beverages or wine. The department of revenue may require the posting of a bond for such storage.

Acts 1981, ch. 157, § 2; 2011, ch. 448, §§ 1, 6; 2014, ch. 767, § 1; 2015, ch. 269, § 3.

Code Commission Notes.

Section 57-3-608, formerly referred to in this section, was repealed by Acts 2012, ch. 968, § 4, effective May 10, 2012; therefore, the reference was deleted from the section by authority of the code commission in 2013.

Attorney General Opinions. A foreign corporation or limited liability company licensed as a nonresident seller or direct shipper must obtain a certificate of authority from the Tennessee secretary of state only if the corporation or company transacts business in the state within the meaning of the relevant statutes, which depends on the character and extent of the corporation’s or the company’s transactions and business in the state. OAG 18-28, 2018 Tenn. AG LEXIS 27 (7/6/2018).

57-3-603. Authorized transactions.

Except as otherwise provided in §57-3-602(c), the holder of a nonresident seller's permit is authorized to:

  1. Solicit and take orders for alcoholic beverages from wholesalers licensed under § 57-3-203; and
  2. Ship or cause to be shipped into this state alcoholic beverages in consummation of sales made to wholesalers licensed under § 57-3-203.

Acts 1981, ch. 157, § 3; 2014, ch. 767, § 2.

57-3-604. Prohibited actions.

No holder of a nonresident seller's permit, nor any officer, director, agent, or employee of the holder, nor any affiliate of the holder, regardless of whether the affiliation is corporate or by management, direction, or control, may do any of the following:

  1. Have an interest, direct, or indirect in any business licensed under §§ 57-3-204 and 57-4-101;
  2. Fail to make or file a report with the commission as required by rule of the commission;
  3. Sell liquor for resale inside this state that fails to meet the standards of quality, purity, and identity prescribed by the commission;
  4. Advertise any liquor contrary to the laws of this state or to the rules of the commission, or sell liquor for resale in this state in violation of advertising or labeling rules of the commission;
  5. Sell liquor for resale inside this state or cause it to be brought into the state in a size of container prohibited by this code or by rule of the commission;
  6. Solicit or take orders for liquor from a person not authorized to import liquor into this state for the purpose of resale;
  7. Induce, persuade, or influence, or attempt to induce, persuade or influence, a person to violate this code or a rule of the commission, or conspire with a person to violate this code or a rule of the commission; or
  8. Exercise a privilege granted by a nonresident seller's permit while an order or suspension against the permit is in effect.

Acts 1981, ch. 157, § 4; 2012, ch. 968, § 2.

57-3-605. Application for permit — Annual fee — Expiration date — Verified statement.

  1. Any manufacturer, distillery, winery, importer or other person desiring to obtain a nonresident seller's permit may make application for such to the commission on forms provided by the commission.
  2. In addition, every applicant shall pay to the commission an annual permit fee which is established at one hundred and fifty dollars ($150) if such applicant shall have shipped, sold or otherwise distributed fewer than one hundred (100) cases of any alcoholic beverage in this state in the year immediately preceding application. If such applicant shall have shipped, sold or otherwise distributed one hundred (100) cases or more of any alcoholic beverage in this state in the year immediately preceding application, it shall pay an annual permit fee of two hundred fifty dollars ($250) to the commission.
  3. Each permit shall be valid for one (1) calendar year.
  4. Any wholesaler, holding a license issued pursuant to § 57-3-203, shall be authorized to act as an importer of alcoholic beverages and wine if such wholesaler holds a basic permit issued pursuant to the Federal Alcohol Administration Act (27 U.S.C. § 201 et seq.), as an importer, advises the commission of its intent to act as an importer, pays an additional annual fee of two hundred fifty dollars ($250) to the commission and otherwise complies with the obligations of an importer pursuant to § 57-3-301 and title 47, chapter 25, part 15.
  5. Every applicant which has registered to import wine into this state shall provide to the commission a verified statement that neither such applicant, nor any agent or affiliate of such applicant, has a policy which would permit the selling, shipment or distribution of alcoholic beverages to any person in this state not possessed of a license issued pursuant to § 57-3-203, and that, for the previous year, neither such applicant nor any agent or affiliate of such applicant has sold, solicited for sale or distributed any alcoholic beverages to any person or enterprise in this state not possessing a license issued pursuant to § 57-3-203.

Acts 1981, ch. 157, § 5; 1991, ch. 23, § 1; 2004, ch. 876, § 4; 2011, ch. 448, § 3.

57-3-606. Wholesalers to import from nonresident seller permittees only.

No wholesaler licensed under §57-3-203 may purchase or order any alcoholic beverage for importation into the state from any source other than one possessed of a nonresident seller's permit or a wholesaler licensed pursuant to §57-3-203 holding a basic permit under the Federal Alcohol Administration Act (27 U.S.C. § 201 et seq.), as an importer. No such wholesaler may purchase or order any alcoholic beverage for importation into the state from any permittee whose permit has been revoked or suspended after such wholesaler has received notice of the revocation or suspension. Notwithstanding §57-1-201(b)(1)(A), no administrative action, including the imposition of any fine, may be brought against a wholesaler under this section unless, prior to bringing the action, the commission has provided written notice to the wholesaler advising the wholesaler that the supplier's nonresident seller's permit has been revoked, suspended, or not renewed.

Acts 1981, ch. 157, § 6; 2011, ch. 448, § 2; 2016, ch. 898, § 3.

57-3-607. Nonresident seller to be primary American source of supply.

  1. No holder of a nonresident seller's permit may solicit, accept, or fill an order for distilled spirits or wine from a holder of any type of wholesaler's permit unless the nonresident seller is the primary American source of supply for the brand of distilled spirits or wine that is ordered.
  2. In this section, “primary American source of supply” means the distiller, the producer, the owner of the commodity at the time it becomes a marketable product, the bottler, or the exclusive agent of any of those. To be the “primary American source of supply” the nonresident seller must be the first source, that is, the manufacturer or the source closest to the manufacturer, in the channel of commerce from whom the product can be secured by American wholesalers.

Acts 1981, ch. 157, § 7.

57-3-608. [Reserved.]

  1. If a representative of the commission or the department of revenue wishes to examine the books, accounts, records, minutes, letters, memoranda, documents, checks, telegrams, constitution and bylaws, or other records of a nonresident seller's permittee, the representative shall make a written request to the permittee or the permittee's duly authorized manager or representative or, if the permittee is a corporation, to any officer of the corporation.
  2. When a request for an examination is made, the person to whom it is directed shall immediately allow the representative to conduct the examination.
  3. The representative may investigate the organization, conduct, and management of any nonresident seller's permittee and may make copies of any records which in the judgment of the representative may show or tend to show that the permittee has violated state law, regulation or the terms of the permit.
  4. A representative may not make public any information obtained under this section except to a law enforcement officer of this state or in connection with an administrative or judicial proceeding in which the state or commission is a party concerning the cancellation or suspension of a nonresident seller's permit, the collection of taxes due under state law, or the violation of state law.
  5. The commission may revoke or suspend a nonresident seller's permit in accordance with this title if a permittee or the permittee's authorized representative fails or refuses to permit an examination authorized by this section, or to permit the making of copies of any documents as provided by this section, without regard to whether the document is inside or outside the state, or if the permittee or the permittee's authorized representative fails or refuses to answer a question of an officer incident to an examination or investigation in progress.

Acts 1981, ch. 157, § 9.

Attorney General Opinions. A minor may be used to purchase beer as part of an investigation by a local beer board so long as written approval of the minor's parents and the juvenile court is obtained, OAG 01-062 (4/20/01).

Part 7 Employee and Server Permits

57-3-701. Short title.

This part shall be known as the “Alcohol Server Responsibility and Training Act of 1995.”

Acts 1995, ch. 396, § 1.

Compiler's Notes. Acts 1995, ch. 396, § 9 provided that persons holding a valid employee or salesperson permit issued by the commission need not obtain a new permit hereunder until the expiration of the existing permits.

Law Reviews.

One Too Many: Sellers, Servers Must Know “How Much Is Too Much” to Avoid Alcohol Related Injuries (Mike Faulk), 43 Tenn. B.J. 12 (2007).

57-3-702. Commission authorized to issue permits.

The commission is authorized to issue employee permits pursuant to §§57-3-203(d),57-3-203(e), [former]57-3-204(c) and server permits pursuant to §57-4-203(h) in accordance with the requirements of this part.

Acts 1995, ch. 396, § 1; 2014, ch. 973, § 3; 2017, ch. 373, § 3.

Compiler's Notes. Section 57-3-204(c), referred to in this section, expired effective July 1, 2016.

57-3-703. Application requirements for employee permit.

  1. Any individual may be eligible for an employee permit by completing an application for such a permit on the forms provided by the commission. An applicant for an employee permit must demonstrate to the commission that the applicant is at least eighteen (18) years of age and:
    1. Has not been convicted of a felony offense involving theft, dishonesty, deceit, or intoxication within the previous eight (8) years;
    2. Has not been convicted of any crime involving the sale or distribution of alcoholic beverages or beer, Schedules I and II controlled substances, or controlled substance analogues or any sex-related crime or embezzlement within the previous eight (8) years;
    3. Has not had an employee permit or any similar permit issued by the state, any local jurisdiction, or any foreign jurisdiction revoked by any issuing authority within the previous five (5) years; and
    4. Has not had an ownership interest in any licensee or permittee, licensed or permitted pursuant to § 57-3-203, § 57-3-204, § 57-3-207, § 57-4-101 or § 57-5-103 which has had its license or permit revoked by the issuing authority within the previous eight (8) years.
  2. If an applicant does not meet the requirements of subdivisions (a)(1)-(4), but is otherwise eligible for a permit, then the applicant's application shall be initially denied pursuant to this subsection (b). Within thirty (30) days of such initial denial, the applicant may request a hearing to be held pursuant to the Uniform Administrative Procedures Act, compiled in title 4, chapter 5. At such hearing, the administrative law judge or hearing officer may consider any evidence the administrative law judge or hearing officer deems relevant to the matter and may, if in the administrative law judge's or hearing officer's judgment the principles of equity require, approve the application and grant the employee permit, notwithstanding the requirements of subdivisions (a)(1)-(4).
    1. If an applicant does not request a hearing pursuant to subsection (b) within the required period, then the application's denial will be final and the applicant may not reapply for an employee permit until the relevant time period described in subdivisions (a)(1)-(4) has expired. If a person applies for an employee permit in violation of this subdivision (c)(1), then such application shall be denied and subsection (b) shall not apply.
    2. If the administrative law judge, hearing officer, or commission denies an application at a hearing held pursuant to subsection (b), then the application's denial will be final and the applicant may not reapply for an employee permit or apply for a server permit pursuant to § 57-3-704 until the relevant time period described in subdivision (a)(1)-(4) has expired. If a person applies for an employee or server permit in violation of this subdivision (c)(2), then such application shall be denied and subsection (b) or § 57-3-704(b) shall not apply.
  3. If a person is convicted of an offense described in subdivision (a)(1) or (a)(2) after being issued an employee permit pursuant to this section, the commission may institute proceedings to revoke the person's employee permit pursuant to § 57-3-214; provided, that the administrative law judge or hearing officer may, if in the administrative law judge's or hearing officer's judgment the principles of equity require, refuse to revoke the person's employee permit, notwithstanding a finding that the person has been convicted of an offense described in subdivision (a)(1) or (a)(2). If the administrative law judge, hearing officer, or commission revokes an employee permit pursuant to this subsection (d), then the applicant may not reapply for an employee permit or apply for a server permit pursuant to § 57-3-704 until the relevant time period described in subdivision (a)(1) or (a)(2) has expired. If a person applies for an employee or server permit in violation of this subsection (d), then such application shall be denied and subsection (b) or § 57-3-704(b) shall not apply.
  4. The commission may promulgate rules and regulations to enforce and administer this section pursuant to the Uniform Administrative Procedures Act.

Acts 1995, ch. 396, § 1; 2014, ch. 973, § 1; 2016, ch. 719, § 1; 2017, ch. 147, § 12.

Complier's Notes. Acts 2016, ch. 719, § 11 provided that the act, which amended this section, shall take effect on April 6, 2016 and shall apply to actions instituted by state entities on or after April 6, 2016.

57-3-704. Application requirements for server permits.

  1. Any individual may be eligible for a server permit by completing an application for such a permit on the forms provided by the commission. An applicant for a server permit must demonstrate to the commission that the applicant meets the following requirements:
    1. Within one (1) year prior to the submission of the application the applicant has successfully completed a program of alcohol awareness training for persons involved in the direct service of alcohol, wine or beer by an entity certified by the commission to have an adequate training curriculum for alcohol awareness. The training program must consist of not less than three and one-half (3½) hours of alcohol awareness training. If, in the determination of the commission, a state other than Tennessee is deemed to have an adequate program of alcohol awareness training, then the successful completion of such training in that state within one (1) year prior to the submission of an application to the commission for a server permit shall satisfy the requirement of alcohol awareness training;
    2. The applicant is at least eighteen (18) years of age; and
    3. The applicant:
      1. Has not been convicted of a felony offense involving theft, dishonesty, deceit, or intoxication within the previous eight (8) years;
      2. Has not been convicted of any crime relating to the sale or dispensing of alcoholic beverages or beer, Schedules I and II controlled substances, or controlled substance analogues or any sex-related crime or embezzlement within the previous eight (8) years;
      3. Has not had a server permit or any similar permit issued by the state, any local jurisdiction, or any foreign jurisdiction revoked by any issuing authority within the previous five (5) years; and
      4. Has not had an ownership interest in any licensee or permittee, licensed or permitted pursuant to § 57-3-203, § 57-3-204, § 57-3-207, § 57-4-101 or § 57-5-103 which has had its license or permit revoked by the issuing authority within the previous eight (8) years.
  2. If an applicant does not meet the requirements of subdivision (a)(3), but is otherwise eligible for a server permit, then the applicant's application shall be initially denied pursuant to this subsection (b). Within thirty (30) days of such initial denial, the applicant may request a hearing to be held pursuant to the Uniform Administrative Procedures Act, compiled in title 4, chapter 5. At such hearing, the administrative law judge or hearing officer may consider any evidence the administrative law judge or hearing officer deems relevant to the matter and may, if in the administrative law judge's or hearing officer's judgment the principles of equity require, approve the application and grant the employee permit, notwithstanding the requirements of subdivision (a)(3).
    1. If an applicant does not request a hearing pursuant to subsection (b) within the required period, then the application's denial will be final and the applicant may not reapply for a server permit until the relevant time period described in subdivision (a)(3) has expired. If a person applies for a server permit in violation of this subdivision (c)(1), then such application shall be denied and subsection (b) shall not apply.
    2. If the administrative law judge, hearing officer, or commission denies an application pursuant to subsection (b), then the application's denial will be final and the applicant may not reapply for a server permit or apply for an employee permit pursuant to § 57-3-703 until the relevant time period described in subdivision (a)(3) has expired. If a person applies for an employee or server permit in violation of this subdivision (c)(2), then such application shall be denied and subsection (b) or § 57-3-703(b) shall not apply.
  3. If a person is convicted of an offense described in subdivision (a)(3)(A) or (a)(3)(B) after being issued a server permit pursuant to this section, the commission may institute proceedings to revoke the person's server permit pursuant to § 57-3-214; provided, that the administrative law judge or hearing officer may, if in the administrative law judge's or hearing officer's judgment the principles of equity require, refuse to revoke the person's server permit, notwithstanding a finding that the person has been convicted of an offense described in subdivision (a)(3)(A) or (a)(3)(B). If the administrative law judge, hearing officer, or commission revokes a server permit pursuant to this subsection (d), then the applicant may not reapply for a server permit or apply for an employee permit pursuant to § 57-3-703 until the relevant time period described in subdivision (a)(3)(A) or (a)(3)(B) has expired. If a person applies for an employee or server permit in violation of this subsection (d), then such application shall be denied and subsection (b) or § 57-3-703(b) shall not apply.
  4. The commission may promulgate rules and regulations to enforce and administer this section pursuant to the Uniform Administrative Procedures Act.
  5. The commission may suspend or revoke a server permit for any violation of this title or any rule or regulation promulgated by the commission committed by the permit holder. The commission may, in lieu of suspending or revoking a server permit under this subsection (f), require the server to retake and successfully complete a program of alcohol awareness training conducted by an entity certified by the commission.
    1. Any employee, representative, or agent of a permittee whose duties include verifying that a person is twenty-one (21) years of age or older for the purpose of authorizing the person access to the premises of the permittee shall, during any period in which the employee, representative, or agent is required to verify that a person is twenty-one (21) years of age or older, require each person seeking access to the premises whose physical appearance does not reasonably demonstrate an age of fifty (50) years or older to present a valid, government-issued document or other acceptable form of identification that includes the photograph and birth date of the person.
    2. The commission may impose a fine of five hundred dollars ($500) against any employee, representative, or agent of a permittee who violates subdivision (g)(1).
    3. As used in this subsection (g):
      1. “Employee, representative, or agent” does not include a server permitted under § 57-4-203(h) and this part; and
      2. “Permittee” means any person, business, or other entity issued a permit under chapter 4 of this title for the purpose of authorizing the sale and consumption of alcoholic beverages on the premises of the permittee.

Acts 1995, ch. 396, § 1; 2001, ch. 279, § 2; 2012, ch. 848, § 60; 2012, ch. 1063, § 2; 2014, ch. 973, § 2; 2016, ch. 719, § 2; 2016, ch. 908, § 2; 2017, ch. 147, § 13; 2019, ch. 435, § 1.

Compiler's Notes. Acts 2016, ch. 719, § 11 provided that the act, which amended this section, shall take effect on April 6, 2016, and shall apply to actions instituted by state entities on or after April 6, 2016.

Amendments. The 2019 amendment added the second sentence in (a)(1).

Effective Dates. Acts 2019, ch. 435, § 6. May 22, 2019.

Attorney General Opinions. Neither this section nor the statute authorizing the Alcoholic Beverage Commission to promulgate rules, T.C.A. §57-3-710, authorizes the commission to promulgate a rule that would allow it to grant a server permit and immediately suspend it for a specific length of time, OAG 04-021 (2/09/04).

57-3-705. Commission certification.

The commission shall certify any organization or entity seeking to provide alcohol awareness training for employees or servers, or both, upon adequate demonstration to the commission that the curriculum, faculty, materials and facilities of the organization or entity meet such minimum standards as shall be fixed by the commission. The commission is authorized to review the adequacy of the curriculum, faculty, materials and facilities of any certified trainer at any time. Failure of any certified trainer to maintain adequate records, respond to a request for information from the commission, or meet the minimum standards prescribed by the commission shall be grounds to decertify the organization or entity. The commission may certify any online training programs that meet the minimum standards as set by the commission.

Acts 1995, ch. 396, § 1; 2017, ch. 338, § 3.

57-3-706. Criminal record check.

The commission may conduct a criminal record review of any applicant for an employee or server permit to ensure the applicant's compliance with the requirements of this part. The commission shall employ the best available means to conduct this investigation.

Acts 1995, ch. 396, § 1.

57-3-707. Temporary permits — Replacement permit cards — Property of employee.

A new server may work for sixty-one (61) days after being hired without the permit required by this part. Any server who has worked for sixty-one (61) days must have the permit required by this part. Upon payment of a reasonable copying fee, the alcoholic beverage commission is authorized and directed to issue replacement permit cards to any cardholder who is qualified under this part for an employee or server permit card which is still valid. Employee and server permit cards are hereby declared the property of the employee or server to whom such cards have been issued. Licensed establishments shall only require a server or employee to provide a copy of such cards for keeping by the establishment.

Acts 1995, ch. 396, § 1; 1999, ch. 206, § 1; 2001, ch. 279, § 1; 2002, ch. 716, § 1.

57-3-708. Permit renewal.

Each employee and server permit shall be valid for five (5) years. Applications for renewal shall be made in the same manner as applications for original permits upon forms prescribed by the commission. Employee and server permits are not transferrable.

Acts 1995, ch. 396, § 1; 2001, ch. 279, § 3.

57-3-709. Fees.

The commission may assess an application and renewal fee for the permits to be issued under this part. The commission may assess a certification fee to any organization or entity seeking certification under §57-3-705. The commission shall establish such fees, only pursuant to rules promulgated in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5, and such fees shall be limited only to covering the costs of implementing this part and for the implementation and updating of commission information technology and software. The commission shall assess an application and renewal fee for the permits issued under this part in an amount sufficient to fund any cost to the state which results from loss of federal funds to implement and administer this program.

Acts 1995, ch. 396, § 1; 2015, ch. 425, § 2.

57-3-710. Implementation.

The commission is authorized to promulgate appropriate rules to implement this part.

Acts 1995, ch. 396, § 1.

Attorney General Opinions. Neither this section nor the statute governing server issuance and denial of server permits, T.C.A. §57-3-704, authorizes the Alcoholic Beverage Commission to promulgate a rule that would allow the commission to grant a server permit and immediately suspend it for a specific length of time, OAG 04-021 (2/09/04).

Part 8 Sale of Wine in Retail Food Stores

57-3-801. Referendum for sale of wine in retail food stores — Form of referendum — Time of election.

    1. This part shall be effective in any jurisdiction that authorizes the sale of wine in retail food stores in a referendum in the manner prescribed by § 57-3-106; provided, however, that a jurisdiction must have held and passed a referendum authorizing retail package stores or held and passed a referendum authorizing the sale of alcoholic beverages for consumption on the premises prior to holding a referendum authorized under this section.
    2. If the county election commission receives the necessary petition requesting the referendum not less than forty-five (45) days before the date on which an election is scheduled to be held, except for referenda scheduled to be held with the regular November general election which shall be held pursuant to § 2-3-204, the county election commission shall include the referendum question contained in subsection (b) on the ballot.
    3. Notwithstanding subdivision (a)(1) and § 57-3-101(a)(14) to the contrary, any municipality having a population of not less than five hundred seventy (570) nor more than five hundred seventy-nine (579), according to the 2010 federal census or any subsequent federal census, that is located in any county having a population of not less than twenty-nine thousand four hundred (29,400) nor more than twenty-nine thousand five hundred (29,500), according to the 2010 federal census or any subsequent federal census, may conduct a referendum to authorize the sale of wine at retail food stores within the corporate boundaries of such municipality. The referendum shall be conducted in the manner prescribed by § 57-3-106, notwithstanding the population requirements of § 57-3-106(b)(1).
  1. At any such election, the question submitted to the voters shall be in the following form:

    For legal sale of wine at retail food stores in  (here insert name of political subdivision).

    Against legal sale of wine at retail food stores in  (here insert name of political subdivision).

  2. A referendum described in this section may be held at any election prescribed in § 57-3-106(c)(1); provided, however, that no such referendum may be held prior to the regular November election in 2014.

Acts 2014, ch. 554, § 1; 2016, ch. 1068, § 7.

Compiler's Notes. For tables of population of Tennessee municipalities, and for U.S. decennial populations of Tennessee counties, see Volume 13 and its supplement.

57-3-802. Part definitions.

For purposes of this part:

  1. “Retail food store” means an establishment that is open to the public that derives at least twenty percent (20%) of its sales taxable sales from the retail sale of food and food ingredients for human consumption taxed at the rate provided in § 67-6-228(a) and has retail floor space of at least one thousand two hundred square feet (1,200 sq. ft.); and
    1. “Wine” means the product of the normal alcoholic fermentation of the juice of fresh, sound, ripe grapes, with the usual cellar treatment and necessary additions to correct defects due to climatic, saccharine and seasonal conditions, including champagne, sparkling and fortified wine of an alcoholic content not to exceed eighteen percent (18%) by volume. No other product shall be called “wine” unless designated by appropriate prefixes descriptive of the fruit or other product from which the same was predominantly produced, or an artificial or imitation wine.
    2. “Wine” does not mean alcohol derived from wine that has had substantial changes to the wine due to the addition of flavorings and additives.

Acts 2014, ch. 554, § 1.

57-3-803. Retail food store wine licenses.

  1. Notwithstanding any other law to the contrary, an additional class of licenses allowing the sale of wine at retail food stores is created. These licenses shall be known as “retail food store wine licenses” and shall be issued by the alcoholic beverage commission; provided, that licenses shall only be issued to a retail food store located in a county or municipality that has authorized the sale of wine at retail food stores by local option election pursuant to § 57-3-801 and has full-time law enforcement through a police or sheriff's department. The commission shall begin issuing the retail food store wine licenses on July 1, 2016, and prior to that date no retail food store may sell wine; however, the commission shall accept applications from retail food stores in jurisdictions that have authorized the sale of wine at retail food stores and begin processing such applications prior to that date. The retail food store wine license shall permit the licensee to receive, store, possess and sell wine at retail for consumption off the premises at the licensed retail food store subject to the restrictions in this part.
    1. Any person, partnership, limited liability company or corporation desiring to sell wine to patrons or customers within the premises of a retail food store, in sealed packages only, and not for consumption on the premises shall make application to the commission for a retail food store wine license, which application shall be in writing and verified, on forms herein authorized to be prescribed and furnished; and the commission may, subject to the restrictions of this part, issue such retailer's license. A retail food store may enter into a franchise or management agreement with a person or entity to make wine sales at the premises of the retail food store. If the premises with respect to which the license is sought is owned by a person, partnership, limited liability company or corporation not the applicant, the application shall include the name and address of the owner. If the ownership of the premises should change after a license is granted, the licensee shall, within ten (10) days after becoming aware of such change in ownership, notify the commission in writing of the name and address of the new owner.
      1. Any individual applicant applying for a retail food store wine license must be twenty-one (21) years of age or older and must not have been convicted of a felony subject to § 57-3-210(c).
      2. The commission may issue a retail food store wine license to a person, partnership, limited liability company or corporation that is registered to do business in this state regardless of the residence of the ownership of such entity. No holder of a retail food store wine license, nor any person or entity having any interest in such license greater than ten percent (10%) shall have any interest as partner or otherwise, either direct or indirect, in a business licensed to engage in the sale or distribution of alcoholic beverages, including wine and beer licensed under §  57-3-202, §  57-3-203, §  57-3-204, §  57-3-207, §  57-3-217 or part 6 of this chapter. Nothing shall prohibit the holder of a retail food store wine license from having more than one (1) retail food store wine license. Nothing in this subdivision (b)(2)(B) shall be construed as prohibiting a retail food store that owns its own premises from either holding a retail food store wine license or from entering into a franchise or management agreement as provided in subdivision (b)(1).
  2. Any wine sold by the holder of a retail food store wine license shall not exceed an alcoholic content of eighteen percent (18%) by volume.
  3. Nothing in this part is intended or shall be construed to modify the provisions of title 57 that provide for the separation and independence of the classes of licenses available to manufacturers, wholesalers or retailers of alcoholic beverages or beer in this state.

Acts 2014, ch. 554, § 1; 2016, ch. 787, § 1.

57-3-804. Application fee and annual license fee.

Each applicant for a retail food store wine license shall pay to the commission a one-time, nonrefundable fee in the amount of four hundred dollars ($400) when the application is submitted for review. A retail food store wine license under this section shall not be issued until the applicant shall have paid to the commission the annual license fee of one thousand two hundred fifty dollars ($1,250).

Acts 2014, ch. 554, § 1.

57-3-805. Location of licensed premises.

The premises of a retail food store wine license may be located in a municipality or the unincorporated areas of a county; provided, that such county or municipality has approved sales of wine by retail food stores by local option election pursuant to §57-3-801. If a county-wide referendum is approved under this part, the premises of a retail food store wine license may be located in any municipality that participated in the referendum regardless of the minimum population requirement for a municipality in §57-3-101.

Acts 2014, ch. 554, § 1; 2017, ch. 147, § 19.

57-3-806. Certificate to accompany application for license — Contents — Requirements for renewal of license — Limitation on location of licensed premises — Review of denial of certificate.

  1. As a condition precedent to the issuance of a license under § 57-3-803, every applicant for a license under that section shall submit with the application to the commission a certificate signed by the county mayor or chair of the county commission in which the licensed premises are to be located if outside the corporate limits of a municipality or, if within a municipality, from the mayor or a majority of the commission, city council, or legislative body of the municipality, by whatsoever name designated, or if the municipality has no mayor, from the highest executive of the municipality. The issuance of a certificate must not be conditioned on the residency of the applicant, including, but not limited to, requiring the applicant to live within the county or municipality, or additional conditions not required by this section. The certificate remains valid unless there is a change of ownership or location. If either of these events occurs, a new certificate must be obtained prior to renewal.
    1. The certificate must state:
      1. That the applicant or applicants who are to be in actual charge of the business have not been convicted of a felony within a ten-year period immediately preceding the date of application and, if a corporation, that the executive officers or those in control have not been convicted of a felony within a ten-year period immediately preceding the date of the application; and
      2. That the applicant or applicants have secured a location for the business which complies with all zoning laws adopted by the local jurisdiction, as to the location of the business.
    2. Each applicant or officer identified in subdivision (b)(1)(A) must obtain and submit with the certificate a local and national criminal history record obtained from a third party using a multistate criminal records locator or other similar commercial nationwide database with validation. A criminal history record that indicates that the applicant or officer has not been convicted of a felony within the immediately preceding ten-year period serves as proof satisfactory that the applicant or officer has complied with subdivision (b)(1)(A).
  2. Municipalities and counties are not authorized to limit the number of retail food store wine licenses issued within their jurisdictions.
    1. In order to renew a retail food store wine license, the licensee must maintain a minimum of twenty percent (20%) of the licensee's sales taxable sales from the retail sale of food and food ingredients for human consumption taxed at the rate provided in § 67-6-228(a), such percentage to be calculated on an annual basis. The licensee shall keep sales and purchase records through accounting methods that are customary or reasonable in the retail food store business.
    2. A retail food store wine licensee who fails to comply with subdivision (d)(1) in achieving the minimum required sales or in failing to keep adequate records shall have one (1) year to come into compliance. During this one-year period, the licensee shall work with the commission in creating a plan that would bring the licensee into compliance with this subsection (d).
    3. Failure to comply after the one-year period shall result in the retail food store wine license being suspended or revoked by the commission.
    4. In order to determine compliance with subdivision (d)(1), each retail licensee shall submit sales information to the commission in such form as the commission deems appropriate at the time the licensee applies for a license or upon renewal of such license. Each licensee shall provide the licensee's sales tax registration number to the commission. The commission is authorized to verify sales information if the commission deems it necessary with the department of revenue.
    1. No retail food store wine license shall be issued to a retail food store located within a shopping center or other development unless documentation is provided to the commission that the retail food store has:
      1. Not prohibited or restricted, through its lease or other agreement with the owner of the shopping center or development, the sale of wine or other alcoholic products by others at the shopping center or development; or
      2. Waived any prohibition or restriction on the sale of wine or other alcoholic products, if such prohibition or restriction is in the lease.
    2. If an applicant for a retail food store wine license is the owner of the shopping center or development, the applicant shall waive any prohibition or restriction on the sale of wine or other alcoholic products on any other entity that is located within that shopping center or development owned by the applicant. Nothing in this subsection (e) shall prevent the nonapplicant owner of a shopping center from imposing restrictions on its tenants through its leases or agreements.
  3. An applicant may seek review of the denial of a certificate by instituting an action in the chancery court having jurisdiction over the municipality or county within sixty (60) days of the denial.
  4. A failure on the part of the issuing authority to grant or deny the certificate within sixty (60) days of the written application for such shall be deemed a granting of the certificate.
  5. The requirement imposed by this section to submit a certificate shall not be applicable to any applicant if:
    1. The authority of the county or municipality charged with the responsibility to issue the certificate required herein shall have failed to grant or deny the certificate within sixty (60) days after written application for such certificate is filed; or
    2. The applicant submits a final order of a court holding that the denial of the required certificate was unreasonable, as established by subsection (f).

Acts 2014, ch. 554, § 1; 2016, ch. 697, § 1; 2016, ch. 1068, § 6; 2017, ch. 357, § 2; 2019, ch. 136, § 5.

Compiler's Notes. Acts 2003, ch. 90, § 2, directed the code commission to change all references from “county executive” to “county mayor” and to include all such changes in supplements and replacement volumes for the Tennessee Code Annotated.

Amendments. The 2019 amendment, in (a), substituted “must not be conditioned” for “shall not be conditioned” in the second sentence, and added the last two sentences.

Effective Dates. Acts 2019, ch. 136, § 6. August 1, 2019.

57-3-807. Applicability of part 2 of this chapter to retail food store wine licenses.

Laws applicable to the issuance, renewal, suspension, and termination of retailer's licenses issued pursuant to part 2 of this chapter and the regulation of and operation by such license holders shall apply in the same manner to retail food store wine licenses and license holders unless this part expressly states otherwise.

Acts 2014, ch. 554, § 1.

57-3-808. Prohibition against sales to minors — Identification required — Penalty.

  1. A retail food store wine license holder engaging in the business regulated under this part, or any employee thereof, shall not make or permit to be made any sales to minors. Prior to making a sale of wine for off-premises consumption, the adult consumer must present to the license holder or any employee of the license holder a valid, government-issued document, such as a driver license or other form of identification deemed acceptable to the license holder that includes the photograph and birth date of the adult consumer attempting to make a wine purchase. Persons exempt under state law from the requirement of having a photo identification shall present identification that is acceptable to the license holder. The license holder or employee shall make a determination from the information presented whether the purchaser is an adult. In addition to the prohibition of making a sale to a minor, no sale of wine for off-premises consumption shall be made to a person who does not present such a document or other form of identification to the license holder or any employee of the license holder in a face-to-face transaction; however, it is an exception to any criminal punishment or adverse administrative action, including license suspension or revocation, for a violation of this section if the sale was made to a person who is or reasonably appears to be over fifty (50) years of age and who failed to present an acceptable form of identification.
  2. A violation of subsection (a) is a Class A misdemeanor.

Acts 2014, ch. 554, § 1; 2015, ch. 428, § 5.

Cross-References.  Penalty for Class A misdemeanor, §40-35-111.

57-3-809. Prohibition against sale to intoxicated persons or persons accompanied by an intoxicated person.

No retail food store wine licensee shall sell any alcoholic beverages to any person who is visibly intoxicated, nor shall any retailer selling alcoholic beverages sell to any person accompanied by a person who is visibly intoxicated.

Acts 2014, ch. 554, § 1.

57-3-810. Licensees exempt from certain restrictions — Licensee operating more than one licensed retail food store in state.

  1. The restrictions in §§ 57-3-404(e) and (f), 57-3-210(g) and (h) and 57-3-204(b) shall not apply to retail food store wine licenses issued pursuant to this part.
  2. A retail food store licensed to sell wine under this part shall not be limited to operating one (1) licensed retail food store business in this state; provided, however, that no retail food store wine licensee shall be permitted to combine its purchasing with any other retail food store wine licensee or retailer licensed under § 57-3-204.

Acts 2014, ch. 554, § 1.

57-3-811. Hours for selling or giving away wine.

No retail food store shall sell, give away, or otherwise dispense wine except between the hours of eight o'clock a.m. (8:00 a.m.) and eleven o'clock p.m. (11:00 p.m.) on Monday through Saturday and between ten o'clock a.m. (10:00 a.m.) and eleven o'clock p.m. (11:00 p.m.) on Sunday.

Acts 2014, ch. 554, § 1; 2018, ch. 783, §§ 3, 4; 2018, ch. 783, §§ 3, 4.

Amendments. The 2018 amendment by ch. 783, effective April 20, 2018, rewrote the section which read, “A retail food store licensed to sell wine under this part shall only sell, or give away, wine during the same hours a licensed retailer sells or gives away wine pursuant to §57-3-406(e) and (h).”; and, effective January 1, 2019, added “and between ten o'clock a.m. (10:00 a.m.) and eleven o'clock p.m. (11:00 p.m.) on Sunday” to the end of the section.

Effective Dates. Acts 2018, ch. 783, § 14. April 20, 2018, January 1, 2019.

57-3-812. Storage and delivery of wine — Purchase of wine from wholesaler.

  1. A retail food store licensed to sell wine under this part shall not store any wine off of the licensed premises.
  2. All deliveries of wine to a retail food store must be made by a licensed wholesaler through a common carrier, a contract carrier or on vehicles owned by the wholesaler. The deliveries shall only be made to the business address of the retail food store.
  3. All purchases of wine from a licensed wholesaler by a retail food store must be conducted by designated managers on premises at each retail food store location where delivery will be made. A retail food store may have more than one (1) designated manager per location.
  4. A wholesaler shall not take orders for wine from any retail food store employee other than a designated manager; provided, that an order does not include a preorder made by a person with a pending application for a retail food store wine license.

Acts 2014, ch. 554, § 1; 2017, ch. 443, § 3.

57-3-813. Prohibition against credit sales to licensee by wholesaler.

No wholesaler shall sell any product to a retail food store wine licensee on credit and payment for all sales to such licensee by a wholesaler shall be effected upon delivery of the product. In order to facilitate the implementation of this section, all payments to wholesalers by such licensees shall be made by electronic funds transfer, credit card, debit card, or such other method as approved by the commission that will facilitate full payment at or near the time of delivery.

Acts 2014, ch. 554, § 1; 2014, ch. 1015, § 7.

Attorney General Opinions. Senate Bill 2415/House Bill 2027 of the 108th General Assembly (enacted as Public Chapter 1015), which requires liquor-by-the-drink licensees to make payment to wholesalers upon delivery of the product, does not violate equal protection under the United States or Tennessee Constitutions.  OAG 14-61, 2014 Tenn. AG Lexis 63 (6/17/14).

Licensed wholesalers of alcoholic beverages may extend up to 10 days’ credit to licensed retailers other than retail food store wine licensees. OAG 16-18, 2016 Tenn. AG LEXIS 17 (5/9/2016).

57-3-814. Licensee prohibited from sale of wine in connection with wholesale wine or alcoholic beverage business in state.

No holder of a retail food store wine license shall sell wine in connection with any business involved in the wholesale sale of wine or alcoholic beverages within this state.

Acts 2014, ch. 554, § 1.

57-3-815. Wholesaler, manufacturer, winery, or nonresident seller's permit holder prohibited from providing certain services to licensee — Delivery of wine — Merchandising assistance.

  1. No wholesaler licensed under § 57-3-203 and no manufacturer, winery, nonresident seller's permit holder or any employee, agent, representative or salesperson employed by or representing any such wholesaler, manufacturer, winery or nonresident seller's permit holder shall provide any services to or for the benefit of a retail food store wine licensee including, but not limited to, services involving shelving, dressing, displaying, or setting inventory owned or purchased by the retail food store licensee. A wholesaler may deliver wine to the premises of a retail food store wine licensee any time at which the wholesaler and the retail food store wine licensee's manager mutually agree in accordance with the ordinary and customary practices of the two industries, regardless of whether the retail food store wine licensee is open to the public, and may deliver wine to a location upon the licensed premises as directed by the retail food store wine licensee.
  2. Notwithstanding subsection (a), a wholesaler, including the wholesaler's agents, servants, or employees, may provide merchandising assistance to a retail food store wine licensee pursuant to this subsection (b). Wholesalers may build and stock wholesaler displays of wine on the premises of a retail food store wine licensee. Wholesaler displays must not be part of the retail food store's regular shelving. Wholesalers may replenish wholesaler displays for a maximum period of one (1) month after the initial display has been installed. Wholesalers shall not price the wholesaler displays and shall not provide any other services or things of value to the retail food store wine licensee.

Acts 2014, ch. 554, § 1; 2017, ch. 443, §§ 1, 2.

57-3-816. Permitted manager — Employees to obtain certification pursuant to responsible vendor training program for wine.

  1. Any retail food store that is licensed to sell wine must have a permitted manager as prescribed in § 57-3-221 and that manager must work on the premises of the licensed retail food store. A retail food store may have more than one (1) manager per license.
  2. All employees of a retail food store that is licensed to sell wine and is involved in selling the wine must obtain certification pursuant to the responsible vendor training program for wine in § 57-3-818.

Acts 2014, ch. 554, § 1.

57-3-817. Wine tastings prohibited on premises — Licensee permitted to hold license to sell alcoholic beverages for consumption on premises — Requirements.

  1. No retail food store shall conduct tastings of wine on the premises of the retail food store.
  2. A retail food store that has a license pursuant to this part may also hold a license to sell alcoholic beverages for consumption on premises pursuant to chapter 4 of this title.

Acts 2014, ch. 554, § 1; 2016, ch. 830, § 1.

57-3-818. Responsible vendor training program — Report — Fees — Exceptions.

  1. The commission shall create a responsible vendor training program for retail food store wine licensees and retailers licensed pursuant to § 57-3-204 similar to the responsible vendor training program established in chapter 5, part 6 of this title.
  2. Except as provided in subsection (d), each retail food store wine licensee and retailer licensed in this state shall participate in the responsible vendor training program created under this section as a condition to having and maintaining such license.
  3. Each retail food store and retailer shall be required to annually file a report stating the number of certified clerks employed by the licensee in the twelve (12) months preceding the date of the report. The list shall include the first and last name of each clerk. The licensee shall maintain records for each clerk sufficient to verify that annual training has been completed. Training shall be a minimum of one (1) hour annually. Each retail food store and retailer shall pay a fee as follows:
    1. 0-15 certified clerks—$150;
    2. 16-30 certified clerks—$200;
    3. 31-45 certified clerks—$250;
    4. 46-60 certified clerks—$300;
    5. 61-100 certified clerks—$350;
    6. 101-150 certified clerks—$400;
    7. 151-200 certified clerks—$450; and
    8. $50.00 for each additional 50 certified clerks over 200.
  4. The commission shall not require any licensee to participate or pay fees for both the responsible vendor training program created in this section and the program established in chapter 5, part 6 of this title. Participation in either program shall be deemed sufficient compliance.
  5. This section shall not apply to employees of a retailer licensed under § 57-3-204 until July 1, 2016. Any employee of a retailer who has a valid permit under [former] § 57-3-204(c) on July 1, 2016, shall not be required to be certified pursuant to this section until that permit expires.

Acts 2014, ch. 554, § 1; 2019, ch. 136, § 2.

Compiler's Notes. Former section 57-3-204(c), referred to in this section, expired effective July 1, 2016.

Amendments. The 2019 amendment rewrote (c) which read: “Each retail food store wine licensee and retailer shall pay an annual fee based on the number of certified clerks existing at the time the licensee applies to the commission for certification under the responsible vendor training program. The fee shall be as follows:”.

Effective Dates. Acts 2019, ch. 136, § 6. August 1, 2019.

57-3-819. Prohibition against sale or gift of wine on certain holidays.

Notwithstanding any law to the contrary, a retail food store wine licensee shall not sell or give away wine on Christmas, Thanksgiving, or Easter.

Acts 2018, ch. 1010, § 3.

Effective Dates. Acts 2018, ch. 1010, § 4. May 21, 2018.

Part 9 Unfair Wine Sales Law

57-3-901. Short title.

This part shall be known and may be cited as the “Unfair Wine Sales Law.”

Acts 2014, ch. 554, § 30.

57-3-902. Part definitions.

As used in this part, unless the context otherwise requires:

  1. “Basic cost of wine” means the invoice cost of wine to the retailer in the quantity last purchased from the wholesaler at prices generally available in the marketplace, absent any cash or other discounts, incentives and/or concessions of any kind, whether such discounts, incentives or concessions are offered within or outside of this state, to which shall be added the full face value of any taxes, freight or delivery fees which may be required by any tax law of this state imposed upon wine supplied to retailers now in effect or hereafter enacted, and any other taxes or fees imposed by this title, if not already included by the wholesaler in this price;
  2. “Commission” means the alcoholic beverage commission;
  3. “Cost of doing business by the retailer” is twenty percent (20%) of the basic cost of wine to the retailer;
  4. “Cost to the retailer” means the “basic cost of wine” to the retailer plus the “cost of doing business by the retailer”; and
  5. “Prices generally available in the marketplace” shall mean the price of wine based upon a purchase from a wholesaler on terms and conditions:
    1. Typically available to nonfood store retailers in the trade area in which the retailer is located; and
    2. In accordance with the requirements set forth in §§ 57-3-811, 57-3-812 and 57-3-813;
  6. “Retailer” shall mean the holder of a retail food store wine license issued under § 57-3-803 or the holder of a retailer license under § 57-3-204;
  7. “Sell at retail,” “sales at retail” or “retail sales” means and includes any transfer of title to tangible personal property for a valuable consideration made in the ordinary course of trade or usual prosecution of the seller's business, to the purchaser for consumption or use; and
  8. “Wholesaler” has the same meaning as provided in § 57-3-101(a).

Acts 2014, ch. 554, § 30.

57-3-903. Advertising, offering for sale or selling wine at less than cost — Misdemeanor — Prima facie violation of part.

  1. It is a Class C misdemeanor for any retailer to advertise, offer to sell, or sell at retail, wine at less than cost to the retailer.
  2. The advertising, sale or offer to sell of wine by any retailer at less than cost to the retailer shall be prima facie evidence of both a violation of this part, and of intent to injure competitors or destroy substantially or lessen competition.

Acts 2014, ch. 554, § 30.

Cross-References. Penalty for Class C misdemeanor, §40-35-111.

57-3-904. Assisting or aiding violation of part — Penalty.

Any individual who, as a director, officer, partner, member, or agent of any person violating this part, assists or aids, directly or indirectly, in such violation, equally with the person for whom such individual acts, commits a Class C misdemeanor.

Acts 2014, ch. 554, § 30.

Cross-References. Penalty for Class C misdemeanor, §40-35-111.

57-3-905. Contracts in violation of part illegal and void.

Any contract, express or implied, made by any person, firm, or corporation in violation of any of the provisions of this part is declared to be an illegal and void contract and no recovery thereon shall be had.

Acts 2014, ch. 554, § 30.

57-3-906. Equitable action to enjoin violation — Recovery of damages and costs — Action for damages alone permitted.

    1. Any person or entity injured by any violation of this part, or any trade association which is representative of such a person or entity, may maintain an action in any court of equitable jurisdiction to prevent, restrain, or enjoin such violation.
    2. If, in such action, a violation of this part shall be established, the court shall enjoin and restrain or otherwise prohibit such violation and, in addition thereto, shall assess in favor of the plaintiff and against the defendant the costs of the suit.
    3. In such action, it shall not be necessary that actual damages to the plaintiff be alleged or proved, but where alleged and proved, the plaintiff in the action, in addition to such injunctive relief and costs of suit, shall be entitled to recover from the defendant the amount of actual damages sustained by the plaintiff.
  1. In the event no injunctive relief is sought or required, any person injured by a violation of this part may maintain an action for damages alone in any court of general jurisdiction, and the measure of damages in such action shall be the same as prescribed in subsection (a).

Acts 2014, ch. 554, § 30.

57-3-907. Restrictions on sales by retail food stores.

No retail food store as defined in §57-3-802 shall sell, offer for sale or advertise the sale of:

  1. Two (2) or more items, at least one (1) of which items is wine, at a combined price; or
  2. Liquor, spirits or high alcohol content beer.

Acts 2014, ch. 554, § 30.

57-3-908. Commission to enforce part — Civil penalties — Petition for hearing.

  1. The commission shall administer and enforce this part.
    1. For an initial violation or noncompliance with any provision of this part by a retailer, a penalty shall be imposed not to exceed one thousand dollars ($1,000);
    2. For any second violation or noncompliance with any provision of this part by any retailer who has previously been found in violation pursuant to subdivision (b)(1), a penalty shall be imposed not to exceed two thousand five hundred dollars ($2,500); and
    3. For any subsequent violation or violations or noncompliance with any provision of this part, by any retailer who has previously been found in violation pursuant to subdivision (b)(2), a penalty shall be imposed not to exceed five thousand dollars ($5,000).
  2. Any retailer who is assessed a civil penalty pursuant to this section, and who continues to engage in the unauthorized sale, distribution or handling of wine in this state, either directly or through any agent or third party acting on behalf of such retailer, shall be charged with an additional violation of this part.
  3. Any retailer who is adversely affected by a decision of the commission may petition the commission for a hearing which will be held in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5, part 3.
  4. In enforcing this part, the commission shall consider the cost and effectiveness of administration and endeavor to administer this part in the most cost-efficient manner.

Acts 2014, ch. 554, § 30.

57-3-909. Exceptions from application of part.

This part shall not apply to sales at retail made where wines are:

  1. Sold upon the complete final liquidation of a business;
  2. Advertised, offered for sale, or sold by any fiduciary or other officer acting under the order or direction of any court;
  3. Closeouts and case discounts; or
  4. Such other occasional discounts as defined by the commission.

Acts 2014, ch. 554, § 30.

Part 10 INTOXICATING LIQUOR SALES LAW

57-3-1001. Short title.

This part shall be known and may be cited as the “Intoxicating Liquor Sales Law.”

Acts 2018, ch. 783, § 6.

Effective Dates. Acts 2018, ch. 783, § 14. April 20, 2018.

57-3-1002. Part definitions.

As used in this part, unless the context otherwise requires:

  1. “Basic cost of intoxicating liquor” means the invoice cost of intoxicating liquor to the retailer in the quantity last purchased from the wholesaler at prices generally available in the marketplace, absent any cash or other discounts, incentives and/or concessions of any kind, whether such discounts, incentives, or concessions are offered within or outside of this state, to which shall be added the full face value of any taxes, freight, or delivery fees which may be required by any tax law of this state imposed upon intoxicating liquor supplied to retailers now in effect or hereafter enacted, and any other taxes or fees imposed by this title, if not already included by the wholesaler in this price;
  2. “Commission” means the alcoholic beverage commission;
  3. “Cost of doing business by the retailer” is ten percent (10%) of the basic cost of intoxicating liquor to the retailer;
  4. “Cost to the retailer” means the “basic cost of intoxicating liquor” to the retailer plus the “cost of doing business by the retailer”;
  5. “Intoxicating liquor” means and includes alcohol, spirits, liquors, and every liquid or solid, patented or not, containing alcohol, spirits, liquor, or wine and capable of being consumed by human beings, but nothing in this part shall be construed or defined as including or relating to the sale of any beverage having an alcoholic content of eight percent (8%) by weight or less;
  6. “Prices generally available in the marketplace” means the price of intoxicating liquor based upon a purchase from a wholesaler on terms and conditions:
    1. Typically available to retailers in the trade area in which the retailer is located; and
    2. In accordance with the requirements set forth in § 57-3-404;
  7. “Retailer” means the holder of a retailer license under § 57-3-204;
  8. “Sell at retail”, “sales at retail”, or “retail sales” means and includes any transfer of title to tangible personal property for a valuable consideration made in the ordinary course of trade or usual prosecution of the seller's business, to the purchaser for consumption or use; and
  9. “Wholesaler” has the same meaning as provided in § 57-3-101(a).

Acts 2018, ch. 783, § 6.

Effective Dates. Acts 2018, ch. 783, § 14. April 20, 2018.

57-3-1003. Violations — Penalty.

  1. It is a Class C misdemeanor for any retailer to advertise, offer to sell, or sell at retail, intoxicating liquor at less than cost to the retailer.
  2. The advertising, sale, or offer to sell of intoxicating liquor by any retailer at less than cost to the retailer shall be prima facie evidence of both a violation of this part, and of intent to injure competitors or destroy substantially or lessen competition.

Acts 2018, ch. 783, § 6.

Effective Dates. Acts 2018, ch. 783, § 14. April 20, 2018.

Cross-References. Penalty for Class C misdemeanor, §40-35-111.

57-3-1004. Persons assisting or aiding in violation — Penalty.

Any individual who, as a director, officer, partner, member, or agent of any person violating this part, assists or aids, directly or indirectly, in such violation, equally with the person for whom such individual acts, commits a Class C misdemeanor.

Acts 2018, ch. 783, § 6.

Effective Dates. Acts 2018, ch. 783, § 14. April 20, 2018.

Cross-References. Penalty for Class C misdemeanor, §40-35-111.

57-3-1005. Contracts in violation of part void.

Any contract, express or implied, made by any person, firm, or corporation in violation of this part is declared to be an illegal and void contract and no recovery thereon shall be had.

Acts 2018, ch. 783, § 6.

Effective Dates. Acts 2018, ch. 783, § 14. April 20, 2018.

57-3-1006. Parties injured by violations — Right to maintain action — Injunction — Damages.

    1. Any person or entity injured by any violation of this part, or any trade association which is representative of such a person or entity, may maintain an action in any court of equitable jurisdiction to prevent, restrain, or enjoin such violation.
    2. If, in such action, a violation of this part shall be established, the court shall enjoin and restrain or otherwise prohibit such violation and, in addition thereto, shall assess in favor of the plaintiff and against the defendant the costs of the suit.
    3. In such action, it shall not be necessary that actual damages to the plaintiff be alleged or proved, but where alleged and proved, the plaintiff in the action, in addition to such injunctive relief and costs of suit, shall be entitled to recover from the defendant the amount of actual damages sustained by the plaintiff.
  1. In the event no injunctive relief is sought or required, any person injured by a violation of this part may maintain an action for damages alone in any court of general jurisdiction, and the measure of damages in such action shall be the same as prescribed in subsection (a).

Acts 2018, ch. 783, § 6.

Effective Dates. Acts 2018, ch. 783, § 14. April 20, 2018.

57-3-1007. Enforcement by commission.

  1. The commission shall administer and enforce this part.
    1. For an initial violation of or noncompliance with any provision of this part by a retailer, a penalty shall be imposed not to exceed one thousand dollars ($1,000).
    2. For any second violation of or noncompliance with any provision of this part by any retailer who has previously been found in violation pursuant to subdivision (b)(1), a penalty shall be imposed not to exceed two thousand five hundred dollars ($2,500).
    3. For any subsequent violation or violations of or noncompliance with any provision of this part, by any retailer who has previously been found in violation pursuant to subdivision (b)(2), a penalty shall be imposed not to exceed five thousand dollars ($5,000).
  2. Any retailer who is assessed a civil penalty pursuant to this section, and who continues to engage in the unauthorized sale, distribution, or handling of intoxicating liquor in this state, either directly or through any agent or third party acting on behalf of such retailer, shall be charged with an additional violation of this part.
  3. Any retailer who is adversely affected by a decision of the commission may petition the commission for a hearing which will be held in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5.
  4. In enforcing this part, the commission shall consider the cost and effectiveness of administration and endeavor to administer this part in the most cost-efficient manner.

Acts 2018, ch. 783, § 6.

Effective Dates. Acts 2018, ch. 783, § 14. April 20, 2018.

57-3-1008. Applicability.

This part shall not apply to sales at retail made where intoxicating liquors are:

  1. Sold upon the complete final liquidation of a business;
  2. Advertised, offered for sale, or sold by any fiduciary or other officer acting under the order or direction of any court;
  3. Closeouts and case discounts; or
  4. Such other occasional discounts as defined by the commission.

Acts 2018, ch. 783, § 6.

Effective Dates. Acts 2018, ch. 783, § 14. April 20, 2018.

Part 11 Tennessee Wine and Grape Board

57-3-1101. Tennessee wine and grape board.

  1. The Tennessee wine and grape board is hereby created, referred to in this part as the “board”, for the purpose of supporting the growth of the wine industry in this state.
  2. For administrative purposes only, the board is attached to the department of agriculture.
  3. The board is composed of seven (7) members, as follows:
    1. The commissioner of agriculture, or the commissioner's designee;
    2. The commissioner of tourism, or the commissioner's designee;
    3. A Tennessee wine producer, appointed by the governor;
    4. A Tennessee grape or fruit producer, appointed by the governor;
    5. A person in higher education with a background in fermentation or viticulture, appointed by the governor; and
    6. Two (2) members who are involved, with respect to the wine industry in this state, in production, marketing, sales, journalism, or education, appointed by the governor.
  4. Members appointed under subdivisions (c)(3)-(6) serve at the pleasure of the governor.
  5. The members of the board shall receive no compensation for their service on the board, nor are the members entitled to per diem or travel expenses for the purposes of carrying out their duties under this part.
  6. The commissioner of agriculture shall call the first meeting of the board. The board shall elect its chair and other officers at the first meeting of the board and annually thereafter.
  7. For the initial appointments of members under subdivisions (c)(3)-(6), the governor shall appoint two (2) members to four-year terms, two (2) members to three-year terms, and one (1) member to a two-year term.
  8. After the initial appointments, each appointed member shall serve a term of four (4) years. Vacancies on the board must be filled in the same manner as the initial appointment.
  9. For purposes of conducting official business of the board, a quorum consists of no less than four (4) members.
  10. The board shall issue an annual report on the wine industry and viticulture in this state and on current and future activities of the board, and shall submit the report to the governor, the commissioner of finance and administration, the chair of the agriculture and natural resources committee of the house of representatives, and the chair of the energy, agriculture and natural resources committee of the senate.

Acts 2019, ch. 444, § 3.

Effective Dates. Acts 2019, ch. 444, § 5. July 1, 2019.

Cross References.

Reporting requirement satisfied by notice to general assembly members of publication of report, §3-1-114.

57-3-1102. Use of appropriated money — Raising funds — Audit.

  1. Money appropriated for use by the board must be used to:
    1. Increase the number of wineries in this state;
    2. Improve the quality of wine produced by wineries in this state;
    3. Promote the wine industry and viticulture in this state; and
    4. Implement and maintain a wholesaler rebate program for Tennessee wineries.
  2. The board has the authority to receive gifts, donations, grants, and funds to promote its activities and support ongoing programs. Any funds raised by the board must be used in accordance with this part.
  3. Any funds received by the board shall be held by the department and accounted for separately for such use.
  4. The office of the comptroller of the treasury may audit the board as it deems necessary.

Acts 2019, ch. 444, § 3.

Effective Dates. Acts 2019, ch. 444, § 5. July 1, 2019.

57-3-1103. Promulgation of rules by board.

The board may promulgate rules for the purpose of carrying out this part.

Acts 2019, ch. 444, § 3.

Effective Dates. Acts 2019, ch. 444, § 5. July 1, 2019.

57-3-609. Investigation of permittees.

Chapter 4 Consumption of Alcoholic Beverages on Premises

Part 1 General Provisions

57-4-101. Premises on which certain sales and consumption authorized.

  1. It is lawful to sell wine and other alcoholic beverages as defined in § 57-4-102, and beer as defined in § 57-6-102, to be consumed on the premises of, or within the boundaries of, any:
    1. Hotel, commercial passenger boat company, paddlewheel steamboat company, restaurant, commercial airlines, or passenger trains meeting the requirements hereinafter set out, within the boundaries of the political subdivisions, wherein such is authorized under § 57-4-103;
    2. Premier type tourist resort or club as defined in § 57-4-102, to guests of such resort and to members and guests of such clubs, subject to the further provisions of this chapter other than § 57-4-103;
    3. Convention center as defined in § 57-4-102, to those in attendance at the convention center, subject to the further provisions of this chapter other than §§ 57-3-210(b)(1) and 57-4-103;
    4. Historic performing arts center as defined in 57-4-102, to those in attendance at the performing arts center, subject to the further provisions of this chapter other than § 57-4-103;
    5. Historic interpretive center as defined in § 57-4-102, to those in attendance at such interpretive center, subject to the further provisions of this chapter other than §§ 57-4-103 and 57-3-210(b)(1);
    6. Community theater as defined in § 57-4-102, to those in attendance at such community theater, subject to the further provisions of this chapter other than § 57-4-103;
    7. Historic mansion house site as defined in § 57-4-102, subject to the further provisions of this chapter other than § 57-4-103;
    8. Terminal building of a commercial air carrier airport as defined in § 57-4-102, subject both to the further provisions of this chapter other than § 57-4-103, and to the approval of a majority of the governing board of such commercial air carrier airport;
      1. Zoological institution as defined in § 57-4-102, to those in attendance at the zoological institution, subject to the further provisions of this chapter other than § 57-4-103. No such wine, alcoholic beverages or beer shall be served during the regular operating hours where the institution is open to the general public unless a special event is scheduled for fund-raising purposes which is by invitation or for which an admission is charged for such event;
      2. Notwithstanding subdivision (a)(9)(A), zoological institution as defined in § 57-4-102(41)(A), (B), and (D), to those in attendance at the zoological institution, subject to the further provisions of this chapter other than § 57-4-103;
    9. Museum as defined in § 57-4-102, to those in attendance at the museum, subject to the further provisions of this chapter other than § 57-4-103. No alcoholic beverage or beer shall be served during the regular operating hours when the museum is open to the general public except at a restaurant located on the premises of such museum or at a special event scheduled for fund-raising purposes when such event is either by invitation or admission is charged;
    10. Commercial airline travel club as defined in § 57-4-102, located within a terminal building of a commercial air carrier airport as defined in § 57-4-102, subject both to the further provisions of this chapter, other than § 57-4-103, and to the approval of a majority of the governing board of such commercial air carrier airport;
    11. Public aquarium as defined in § 57-4-102, to those in attendance at the public aquarium subject to this chapter;
    12. Aquarium exhibition facility as defined in § 57-4-102, to those in attendance at such facility subject to the provisions of this chapter. Such alcoholic beverages, wine and beer shall only be sold on such premises at special functions, wherein attendance is limited to invited guests or groups, the function is not open to the general public, and the area in which the function is held is not open to the general public during such function;
    13. Caterer licensed under this chapter as well as at such other sites as the licensed caterer has given advanced notice to the commission. Such sites shall be considered to be within the licensed premises for the purposes of this chapter;
    14. Sports authority facility as defined in § 57-4-102, to those in attendance at such sports authority facility, subject to the further provisions of this chapter. A sports authority facility as defined in § 57-4-102(34)(A) constitutes an urban park center for the purposes of the taxes provided in § 57-4-301;
    15. Theater as defined in § 57-4-102, to those in attendance at such theater, subject to the further provisions of this chapter;
    16. Retirement center as defined in § 57-4-102;
    17. Tennessee River resort district as defined in § 57-4-102, subject to the further provisions of this chapter other than § 57-4-103;
    18. Civic arts center as defined in § 57-4-102, to those in attendance at the civic arts center, subject to the further provisions of this chapter other than § 57-4-103;
    19. Limited service restaurant as defined in § 57-4-102, wherein such is authorized under § 57-4-103; and
    20. Festival operator as defined in § 57-4-102, to those in attendance at a festival, subject to the further provisions of this chapter, and except as otherwise provided in § 57-4-102.
  2. It is lawful to sell wine and other alcoholic beverages as defined in § 57-4-102, to be consumed on the premises of any:
    1. Permanently constructed facility within an urban park center as defined in § 57-4-102, to those in attendance at the urban park center, subject to the further provisions of this chapter other than §§ 57-4-103 and 57-3-210(b)(1);
    2. Any motor speedway as defined in § 57-4-102, to the patrons and guests of such motor speedway, subject to the further provisions of this chapter other than § 57-4-103. The phrase “premises of any motor speedway” includes any permanent or temporary structure erected on the motor speedway site as defined in § 57-4-102(23)(A); and
    3. Country club located on an historic property, as defined in § 57-4-102, to the patrons and guests of such country club, subject to the further provisions of this chapter other than § 57-4-103.
  3. It is lawful to sell wine, as defined in § 57-4-102, to be consumed on the premises of any:
    1. Restaurant located within the boundaries of any political subdivision which has authorized the sale of alcoholic beverages for consumption on the premises as provided in § 57-4-103, subject to the further provisions of this chapter. Notwithstanding the minimum seating requirement for a restaurant in § 57-4-102, a restaurant operating under this subsection (c) shall have a seating capacity of at least forty (40) people at tables, except in central business improvement districts located in counties having a population of eight hundred thousand (800,000) or more, according to the 2000 federal census or any subsequent federal census where such restaurants shall have a seating capacity of at least twenty-four (24) people; and
    2. Bed and breakfast establishment as defined in § 57-4-102, to the guests of the bed and breakfast establishment, subject to the further provisions of this chapter other than § 57-4-103.
  4. It is lawful to serve wine and other alcoholic beverages as defined in § 57-3-101, and beer as defined in § 57-6-102, to be consumed on the premises of any club as defined in § 57-4-102(8)(G), to the guests of the club, subject to the further provisions of this chapter other than § 57-4-103; provided, that such club is located in a county having a population of not less than one hundred three thousand one hundred (103,100) nor more than one hundred three thousand four hundred (103,400), according to the 1990 federal census or any subsequent federal census, and in a municipality which lies within two (2) contiguous counties.
  5. It is lawful to serve wine as defined in § 57-3-101, and beer as defined in § 57-6-102, to be consumed on the premises of any restaurant as defined in § 57-4-102(30)(F), located in the unincorporated areas of any county having a population of not less than thirty thousand two hundred (30,200) nor more than thirty thousand four hundred seventy-five (30,475), according to the 1990 federal census or any subsequent federal census, subject to the further provisions of this chapter other than § 57-4-103.
  6. It is lawful to serve wine as defined in § 57-3-101, to be consumed on the premises of any historic inn as defined in § 57-4-102, to the patrons and guests of the historic inn, subject to the further provisions of this chapter other than § 57-4-103.
  7. It is lawful for a charitable, nonprofit or political organization possessing a special occasion license pursuant to § 57-4-102 to serve or sell wine and other alcoholic beverages as defined in § 57-4-102, and beer as defined in § 57-6-102, to be consumed on the designated premises, or sold or donated in sealed containers for off-premises consumption within the boundaries of a political subdivision wherein the sale of alcoholic beverages at retail has been approved pursuant to § 57-3-106 or wherein the sale of alcoholic beverages for consumption has been approved pursuant to § 57-4-103. A special occasion license may also be issued for an event within the unincorporated portion of a county if at least one (1) municipality in such county has approved the sale of alcoholic beverages at retail pursuant to § 57-3-106 or the sale of alcoholic beverages for consumption pursuant to § 57-4-103.
  8. Any hotel or motel licensed under this chapter may dispense sealed alcoholic beverages and beer to adult guests through locked, in-room units. Distilled spirits so dispensed shall be in bottles not exceeding fifty milliliters (50 ml.). No person under the age of twenty-one (21) shall be issued or supplied with a key by any hotel or motel for such units. Such units may only be located in any such hotel or motel if the voters of such municipality have approved the consumption of alcoholic beverages on the premises by referendum, and in any county in which such municipalities are located if the voters of such county have approved the consumption of alcoholic beverages on the premises by referendum.
  9. A restaurant or hotel licensed under this chapter may seek an additional license permitting the restaurant or hotel to distribute and sell wine, beer and other alcoholic beverages at locations other than the licensed premises if the restaurant or hotel is providing catering services, if such location is within a jurisdiction where such sales are authorized. A caterer licensed under this chapter may distribute and sell wine, beer and other alcoholic beverages at locations other than the permanent catering hall if the caterer is providing catering services at a location that is within a jurisdiction where such sales are authorized.
  10. It is lawful to serve wine as defined in § 57-4-102 within a special historic district as defined in § 57-4-102 on Fridays and Saturdays. Such establishments serving wine within the special historic district shall not be required to obtain a special occasion license pursuant to § 57-4-102 or be required to obtain server permits pursuant to chapter 3, part 7 of this title. This section shall not apply to any restaurant or bar located within the special historic district.
  11. It is lawful to serve wine, as defined in § 57-3-101, to be consumed on the premises of any restaurant, as defined in § 57-4-102(30)(G), located in any county having a population of not less than sixty-nine thousand four hundred (69,400) nor more than sixty-nine thousand five hundred (69,500), according to the 2000 federal census or any subsequent federal census, subject to the further provisions of this chapter other than § 57-4-103.
  12. It is lawful to serve wine as defined in § 57-3-101, to be consumed on the premises of any restaurant as defined in § 57-4-102(30)(I), located in any county having a population of not less than one hundred twenty-six thousand six hundred (126,600) nor more than one hundred twenty-six thousand seven hundred (126,700), according to the 2000 federal census or any subsequent federal census, subject to the further provisions of this chapter other than § 57-4-103.
  13. A premier type tourist resort, as defined in § 57-4-102(27)(EEE), licensed pursuant to this part, shall be allowed to sell beer, as defined in § 57-5-101(b), to its patrons or guests, for either on-premises or off-premises consumption provided such premier type tourist resort, as defined in § 57-4-102(27)(EEE), obtains a permit, pursuant to chapter 5 of this title, issued by the county or city where such premier type tourist resort is located.
  14. A licensee who qualifies for a restaurant license, limited service restaurant license, or hotel license may also serve alcoholic beverages in any area of the premises designated on the application that is used for the purpose of entertainment activities. Entertainment activities may include, but are not limited to, bowling, billiards, games, auditoriums, darts, or golf driving ranges. Any area used for entertainment activities shall have table service or be within close observation distance from the service area of the facility as determined by the commission.
  15. It is lawful to furnish, dispense, or give away alcoholic beverages and beer without a license or permit issued by the commission at a private party or private event.
  16. An entity licensed or applying for a license under subsection (a), or a manufacturer exercising the rights granted to it under § 57-3-202(i)(1), may include in the entity's designation of its premises any contiguous area owned or controlled by the entity for purposes of on-premises consumption of alcoholic beverages and beer. If the contiguous area used for on-premises consumption is unenclosed, the entity shall make reasonable efforts to ensure that a customer cannot leave the premises with an alcoholic beverage or beer purchased on the premises by using barriers to prevent the ingress and egress of customers to and from the premises. If more than one (1) entity licensed under subsection (a) or § 57-3-202 operates within the same building or facility, the designations of premises under this subsection (p) may overlap; provided, that each entity serves alcoholic beverages and beer in a glass or cup identifying the entity selling the alcoholic beverages or beer for on-premises consumption.

Acts 1939, ch. 49, § 3; C. Supp. 1950, §§ 6648.4 (Williams, § 6648.6); T.C.A. (orig. ed.), § 57-106; Acts 1967, ch. 211, § 1; 1972, ch. 682, § 1; 1972, ch. 756, §§ 1, 2; 1975, ch. 111, §§ 1, 2; 1979, ch. 401, § 1; T.C.A., § 57-152; Acts 1980, ch. 898, § 1; 1981, ch. 404, § 1; 1981, ch. 475, § 1; 1983, ch. 52, § 1; 1983, ch. 229, § 6; 1983, ch. 300, § 2; 1983, ch. 469, § 1; 1984, ch. 975, § 1; 1985, ch. 190, § 1; 1986, ch. 899, §§ 1, 2; 1987, ch. 444, §§ 1, 2; 1989, ch. 145, § 1; 1990, ch. 919, § 1; 1991, ch. 219, § 1; 1992, ch. 674, § 1; 1992, ch. 982, § 1; 1995, ch. 306, § 1; 1996, ch. 749, § 1; 1998, ch. 795, §§ 1, 5; 1998, ch. 939, § 1; 1999, ch. 314, § 3; 1999, ch. 525, § 1; 2000, ch. 657, § 1; 2001, ch. 64, § 1; 2001, ch. 74, § 2; 2001, ch. 84, § 2; 2001, ch. 371, § 1; 2001, ch. 383, §§ 1, 4; 2002, ch. 647, § 2; 2004, ch. 544, § 2; 2004, ch. 857, § 2; 2005, ch. 212, §§ 3, 4; 2005, ch. 253, § 1; 2006, ch. 602, § 1; 2008, ch. 634, § 1; 2010, ch. 647, § 2; 2010, ch. 927, § 1; 2010, ch. 1133, § 1; 2011, ch. 447, § 2; 2014, ch. 907, § 2; 2014, ch. 1001, § 11; 2015, ch. 336, § 1; 2015, ch. 367, § 1; 2015, ch. 391, § 4; 2016, ch. 874, § 2; 2017, ch. 142, § 2; 2017, ch. 147, §§ 7, 8; 2018, ch. 755, §§ 1, 3; 2019, ch. 300, § 1; 2019, ch. 435, § 4; 2020, ch. 778, § 1.

Compiler's Notes. Acts 1989, ch. 145, § 3 provided that the alcoholic beverage commission is authorized to promulgate any rules which may be necessary to implement the provisions of this section.

For tables of population of Tennessee municipalities, and for U.S. decennial populations of Tennessee counties, see Volume 13 and its supplement.

Acts 2005, ch. 212, § 6 provided that:

“(a) The commissioner of revenue shall promulgate rules and regulations to effectuate the provisions of this act.

“(b) The commissioner of economic and community development shall promulgate rules and regulations to effectuate the provisions of this act.

“(c) The executive director of the alcoholic beverage commission shall promulgate rules and regulations to effectuate the provisions of this act.

“(d) All such rules and regulation shall be promulgated in accordance with the provisions of the Uniform Administrative Procedures Act, compiled in title 4, chapter 5.”

Acts 2018, ch. 755, which amended this section, contained two act sections 4. One of which amended §57-4-102, and the other was the effective date provision.

Amendments. The 2018 amendment added (a)(21) and (p).

The 2019 amendment by ch. 300 added (a)(9)(B).

The 2019 amendment by ch. 435, in (p), inserted “, or a manufacturer exercising the rights granted to it under §57-3-202(i)(1),” in the first sentence, and inserted “or §57-3-202” in the second sentence.

The 2020 amendment substituted “§ 57-4- 102(41)(A), (B), and (D),” for “§57-4-102(41)(B) and (D),” in (a)(9)(B).

Effective Dates. Acts 2018, ch. 755, § 4. April 18, 2018.

Acts 2019, ch. 300, § 2. May 8, 2019.

Acts 2019, ch. 435, § 6. May 22, 2019.

Acts 2020, ch. 778, § 2. July 15, 2020.

Cross-References. Certain 1987 amendments to section inapplicable to certain counties, §57-4-104.

Hotels and motels, §57-5-107.

Nonresident seller's permittees prohibited from interest in business licensed under this section, §57-3-604.

Textbooks. Tennessee Jurisprudence, 16 Tenn. Juris., Intoxicating Liquors, § 10.

Attorney General Opinions. Applicability of local beer permit ordinance to liquor-by-the-drink license holders, OAG 99-098 (4/30/99).

Because sales of liquor by the drink are legal in all of the various establishments and places listed in T.C.A. §57-4-101, so long as they obtain a proper license, a city may not, either by ordinance or referendum, limit sales of liquor by the drink to only some of the establishments and occasions listed in that section, OAG 02-092 (8/28/02).

Implementation of Tennessee River Resort District Act, OAG 05-161 (10/18/05).

A civic center could legally permit alcoholic beverages to be served during private engagements, so long as the service is provided by a restaurant, hotel or licensed caterer who complies with the requirements of T.C.A. §§ 57-4- 101(i) and 57-4-203(i)(3), OAG 06-175 (12/8/06).

Hours for the sale of beer in a municipality located within a Tennessee iver resort district.  OAG 10-92, 2010 Tenn. AG LEXIS 98 (8/17/10).

As a municipal corporation the city of Clarksville cannot obtain a license to sell liquor by the drink at any location or sell alcoholic beverages or beer to either private party lessees and guests or to the general public; no city employee or nonprofit corporation created or controlled by the city may obtain a permit to sell liquor by the drink or obtain a beer permit on behalf of the city.  OAG 14-03, 2014 Tenn. AG LEXIS 5 (1/9/14).

Licensing and taxation of hotels selling alcohol for consumption on the premises. OAG 16-05, 2016 Tenn. AG LEXIS 3 (2/9/2016).

NOTES TO DECISIONS

1. Clubs.

A club which has a license for on-premises consumption of alcoholic beverages and beer from the alcoholic beverage commission under T.C.A. §§57-4-102 and57-4-101(b) [now §57-4-101(a)(2)] does not have an absolute right to a beer permit from a city beer board. State ex rel. Amvets Post 27 v. Beer Bd. of Jellico, 717 S.W.2d 878, 1986 Tenn. LEXIS 794 (Tenn. 1986).

57-4-102. Chapter definitions.

As used in this chapter, unless the context otherwise requires:

  1. “Alcoholic beverage” or “beverage” means and includes alcohol, spirits, liquor, wine, and every liquid containing alcohol, spirits, wine and capable of being consumed by a human being, other than patented medicine or beer as defined in § 57-5-101(b). Notwithstanding any provision to the contrary in this title, “alcoholic beverage” or “beverage” also includes any product containing distilled alcohol capable of being consumed by a human being manufactured or made with distilled alcohol irrespective of alcoholic content, including any infused product;
  2. “Aquarium exhibition facility” means an enclosed facility possessing each of the following characteristics:
    1. The facility is owned and operated by a bona fide charitable or nonprofit organization that also owns and operates a “public aquarium” as defined in subdivision (29);
    2. The facility contains a minimum area of ten thousand square feet (10,000 sq. ft.); and
    3. The facility is used for either or both of the following purposes:
      1. The exhibition to the public of artifacts, physical objects, pictures and movies; or
      2. To aid in the education of the public by means of interactive displays or stations, learning laboratories, and classroom areas for instruction in the physical sciences, natural history or other educational disciplines;
    1. “Bed and breakfast establishment” has the same meaning as set forth in § 68-14-502(1)(A); provided, that such bed and breakfast establishment is located in a county having a population of not less than fifty-one thousand three hundred fifty (51,350) nor more than fifty-one thousand four hundred fifty (51,450), according to the 1990 federal census or any subsequent federal census and has eleven (11) furnished guest rooms;
    2. “Bed and breakfast establishment” also means an establishment:
      1. Founded in July 1987;
      2. With twelve (12) rooms and five (5) cottages;
      3. Located on approximately fifteen (15) acres;
      4. Operating a full service day spa; and
      5. Located in a county with not less than eighty-nine thousand eight hundred (89,800) and not more than eighty-nine thousand nine hundred (89,900), according to the 2010 or any subsequent federal census;
  3. “Bona fide charitable or nonprofit organization” means any corporation which has been recognized as exempt from federal taxes under § 501(c) of the Internal Revenue Code (26 U.S.C. § 501(c)), or any organization having been in existence for at least two (2) consecutive years which expends at least sixty percent (60%) of its gross revenue exclusively for religious, educational or charitable purposes;
  4. “Bona fide political organization” means any political campaign committee as defined in § 2-10-102 or any political party as defined in § 2-13-101;
  5. “Caterer” means a business engaged in offering food and beverage service for a fee at various locations, which:
    1. Operates a permanent catering hall on an exclusive basis or restaurant;
    2. Has a complete and adequate commercial kitchen facility; and
    3. Is licensed as a caterer by the Tennessee department of health;
  6. “Civic arts center” means a complex that serves as a community center for the arts and further possesses the following characteristics:
    1. Has a performance hall with at least one thousand one hundred (1,100) seats;
    2. Has a flexible theater;
    3. Consists of two (2) buildings and an outdoor plaza between the buildings;
    4. Allows alcoholic beverages to be served when the civic arts center is hosting ticketed events, private functions or is rented to another party hosting an event open to the public; and
    5. Is located in a county having a population of not less than one hundred five thousand eight hundred (105,800) nor more than one hundred five thousand nine hundred (105,900), according to the 2000 federal census or any subsequent federal census;
    1. “Club” means a nonprofit association organized and existing under the laws of this state, which has been in existence and operating as a nonprofit association for at least two (2) years prior to the application for a license hereunder, having at least one hundred (100) members regularly paying dues, organized and operated exclusively for pleasure, recreation and other nonprofit purposes, no part of the net earnings of which inures to the benefit of any shareholder or member; and owning, hiring or leasing a building or space therein for the reasonable use of its members with suitable kitchen and dining room space and equipment and maintaining and using a sufficient number of employees for cooking, preparing and serving meals for its members and guests; provided, that no member or officer, agent or employee of the club is paid, or directly or indirectly receives, in the form of salary or other compensation, any profits from the sale of spirituous liquors, wines, champagnes or malt beverages beyond the amount of such salary as may be fixed by its members at an annual meeting or by its governing body out of the general revenue of the club. For the purpose of this section, tips which are added to the bills under club regulations shall not be considered as profits hereunder. The premises, as provided in § 57-4-101(a)(2) for a club, shall also include the golf course, tennis courts and the area immediately surrounding the swimming pool, if a club offers such amenities. The alcoholic beverage commission shall have specific authority through rules and regulations to define with specificity the terms used herein and to impose additional requirements upon applicants seeking a club license not inconsistent with the definition above;
    2. “Club” also means an organization composed of members of the Tennessee national guard, air national guard, or other active or reserve military units which operate facilities located on land owned or leased by this state and which are operated exclusively for the pleasure and recreation of such organization's members, dependents and guests and which are generally referred to as “NCO Clubs” or “Officers Clubs.” Such NCO or officers clubs shall be subject to all of the requirements of subdivision (8)(A), except for those requirements relating to having a kitchen, kitchen equipment, and employees;
    3. “Club” also means a nonprofit association organized and existing under the laws of this state which is located in a county having a population of not less than twenty-eight thousand six hundred sixty (28,660) nor more than twenty-eight thousand six hundred ninety (28,690), according to the 1980 federal census or any subsequent federal census. Such club shall be located in a development containing no less than four hundred forty (440) acres and shall be organized and operated exclusively for the pleasure, recreation and other nonprofit purposes of its members and their guests. No part of the net earnings of the association shall inure to the benefit of any shareholder or member. The club shall provide to its members a regulation golf course, tennis courts, and a swimming pool. The club shall own, hire or lease a building or buildings for the reasonable use of its members with suitable kitchen and dining room space and equipment. Such club shall maintain and use a sufficient number of employees for cooking, preparing and serving meals for its members and guests. No member or officer, agent or employee of the club shall be paid, or directly or indirectly receive in the form of salary or other compensation any profits from the sale of alcoholic beverage or malt beverage beyond the amount of such salary as may be fixed by its members at an annual meeting, or by its governing body out of the general revenues of the club. For the purpose of this section, tips which are added to the bills under club regulations shall not be considered as profits hereunder. The alcoholic beverage commission shall have specific authority through rules and regulations to define with specificity the terms used herein and to impose additional requirements upon applicants seeking a club license not inconsistent with this definition;
      1. “Club” also means a for-profit recreational club organized and existing under the laws of this state and which has been in existence and operating for at least two (2) years prior to the application for a license. Such club shall have at least one hundred (100) members regularly paying dues, and shall be organized and operated exclusively for recreation, and providing to its members a regulation golf course and owning, hiring or leasing a building or buildings for the reasonable use of its members, with suitable kitchen and dining room space and equipment, and lodging facilities consisting of not less than ten (10) rooms. Such club shall maintain and use a sufficient number of employees for cooking, preparing and serving meals for its members and guests and providing lodging facilities to its members and guests. Other than the payment of dividends to the shareholders of the club from its net income derived from all of its operations, no member or officer, agent or employee of the club shall be paid, or shall directly or indirectly receive in the form of salary or other compensation, any profits from the sale of alcoholic beverages or malt beverages beyond the amount of such salary as may be fixed by the shareholders of the corporation at an annual meeting by its governing body out of the general revenues of the club. For the purpose of this section, tips which are added to the bills under club regulations shall not be considered as profits hereunder. The alcoholic beverage commission shall have specific authority through rules and regulations to define with specificity the terms used herein and to impose additional requirements upon applicants seeking a club license not inconsistent with this definition. The alcoholic beverage commission shall not issue a license to any for-profit recreational club which restricts membership based on race or religion or sex. In any proceeding concerning a license denial or revocation under this subdivision (8)(D)(i), no quota or numerical percentage shall be used to establish proof of the prohibited discrimination among the club's membership;
      2. Notwithstanding § 57-4-101(a)(2) to the contrary, this subdivision (8)(D) shall not apply in any municipality which has not approved the sale of alcoholic beverages for consumption on the premises pursuant to § 57-4-103;
      3. This subdivision (8)(D) only applies in counties having a population of not less than two hundred eighty-seven thousand seven hundred (287,700) nor more than two hundred eighty-seven thousand eight hundred (287,800), according to the 1980 federal census or any subsequent federal census;
      1. “Club” also means a for-profit recreational club, organized and existing under the laws of this state, which has at least two hundred fifty (250) dues-paying members who pay dues of at least one hundred dollars ($100) a year. Such club shall have golf courses containing at least twenty-seven (27) holes, collectively, for the use of its members and guests, and have suitable kitchen and dining facilities. Such club shall serve at least one (1) meal daily, five (5) days a week. Such club may not compensate or pay any officer, director, agent or employee any profits from the sale of alcoholic or malt beverages based upon the volume of such beverages sold. Such club shall not discriminate against any patron or potential member on the basis of gender, race, religion or national origin;
      2. This subdivision (8)(E) only applies in counties having a population of not less than eighty thousand (80,000) nor more than eighty-three thousand (83,000), according to the 1990 federal census or any subsequent federal census;
      1. (a)  “Club” also means a for-profit recreational club, organized and existing under the laws of this state, which has at least two hundred twenty-five (225) dues-paying members who pay dues of at least three hundred dollars ($300) a year. Such club shall have a clubhouse with not less than five thousand square feet (5,000 sq. ft.), golf courses containing at least eighteen (18) holes, collectively, for the use of its members and guests, and have suitable kitchen and dining facilities. Such club shall serve at least one (1) meal daily, five (5) days a week. Such club may not compensate or pay any officer, director, agent or employee any profits from the sale of alcoholic or malt beverages based upon the volume of such beverages sold. Such club shall not discriminate against any patron or potential member on the basis of gender, race, religion or national origin. It is the express intention of the general assembly that the law concerning the purchase or possession of alcoholic beverages by persons under twenty-one (21) years of age be strictly enforced in such clubs;
      2. This subdivision (8)(F) only applies in any county having a population of:

      not less than  nor more than

      21,800 22,100

      22,600 23,000

      34,850 35,000

      80,000 83,000

      103,100 103,400

      according to the 1990 federal census or any subsequent federal census;

    4. “Club” also means a clubhouse owned and operated by a for-profit corporation, which is open to the public but has at least one hundred fifty (150) private members and seats at least one hundred (100) persons, that is a planned part of a residential development consisting of no less than two hundred fifty (250) acres and at least one hundred ninety (190) residential units, and such development contains an eighteen-hole golf course under separate ownership; provided, that such club is located in a county having a population of not less than one hundred three thousand one hundred (103,100) nor more than one hundred three thousand four hundred (103,400), according to the 1990 federal census or any subsequent federal census and in a municipality which lies within two (2) contiguous counties;
    5. “Club” also means a facility owned by a for-profit corporation incorporated in Tennessee prior to September 30, 2000, as a private club which does not discriminate against members or potential members or bona fide guests of such members on the basis of gender, race, religion or national origin, and further possesses the following characteristics:
      1. Is located within three (3) miles of a municipal golf course owned and operated by a home-rule municipality located in a county having a charter form of government and having a population of not less than three hundred eighty-two thousand (382,000) nor more than three hundred eighty-two thousand one hundred (382,100), according to the 2000 federal census or any subsequent federal census;
      2. Has, on July 3, 2002, a minimum of three hundred (300) members paying annual dues with a copy of membership applications on file on the premises, and which issues to its members a membership card which authorizes admittance of the member and bona fide guests of such member; and
      3. Has a kitchen and dining area having a minimum seating capacity of seventy-five (75) in a building having at least eighteen hundred square feet (1800 sq. ft.);
      1. “Club” also means a for-profit recreational club organized and existing under the laws of this state which has been in existence and operating for at least two (2) years prior to June 11, 2003, and which is located in any county having a population of not less than three hundred seven thousand eight hundred (307,800) nor more than three hundred seven thousand nine hundred (307,900), according to the 2000 federal census or any subsequent federal census, and further possesses the following characteristics:

The premises, as provided in §57-4-101(a)(2) for a club, whether such parcels comprising the club premises are contiguous or not, shall also include the golf course, including beverage carts; tennis courts; all areas of the clubhouse; the area immediately surrounding the swimming pool, if a club offers such amenities; and all other related recreational facilities;

  1. Has at least one hundred seventy-five (175) members paying annual dues and does not discriminate against members or potential members or bona fide guests of such members on the basis of gender, race, religion or national origin;
  2. Is organized and operated exclusively for recreation and providing a regulation eighteen-hole golf course for the use of its members and guests, and also offers for the use of its members and guests a swimming pool and tennis facility; and
  3. Has a clubhouse with not less than three thousand square feet (3,000 sq. ft.) with suitable kitchen, dining facilities and equipment, serving at least one (1) meal daily, at least five (5) days a week;
  4. The club may not compensate or pay any officer, director, agent or employee any profits from the sale of alcoholic or malt beverages based on the volume of those beverages sold;
  5. The premises, as provided in § 57-4-101(a)(2) for a club, whether such parcels comprising the club premises are contiguous or not, shall also include the golf course, including beverage carts; tennis courts; all areas of the clubhouse; the area immediately surrounding the swimming pool, if a club offers such amenities; and all other related recreational facilities; and
  6. Does not discriminate against members or potential members or bona fide guests of such members on the basis of gender, race, religion, or national origin;
  7. Does not discriminate against members or potential members or bona fide guests of such members on the basis of gender, race, color, age, religion, or national origin; and

    not less than  nor more than

    143,900 144,000

    300,000 400,000

    700,000

    according to the 1980 federal census or any subsequent federal census;

  8. Any such hotel whose facilities are located on the premises of an area meeting the definition of a hotel under this subdivision (21)(F)(iii) may exercise the privileges authorized under this chapter anywhere within that area, and, in addition, may exercise the privilege authorized under this chapter on any location identified to the commission and held out to the public as part of such hotel property irrespective of the actual owner of the location, where the hotel is authorized by written contract or lease to provide hotel or resort services by the owner of such location; and
  9. Notwithstanding this title or any rule to the contrary, a hotel under this subdivision (21)(F)(iii) shall be able to:
    1. Hold a manufacturer's license under § 57-3-202 or a nonmanufacturer nonresident seller's permit under § 57-3-602(c) or both, and such license or permit may be for facilities on or off the hotel premises;
    2. Offer tastings, with or without charge, and sell sealed bottles in a tasting room or a gift shop on the hotel premises of product manufactured pursuant to the license or permit in subdivision (21)(F)(iii)(i )(1 ), as long as such tastings and sealed bottles are offered only to guests of the hotel, as defined in this section, and private owners of homes on the hotel property and are not offered anywhere except in the tasting room and the gift shops;
    3. Sell beer and alcoholic beverages by the drink for on-premises consumption anywhere on the hotel premises, except for the tasting room and the gift shops; and
    4. Only sell at retail or provide samples of product that it has obtained from a wholesaler licensed under § 57-3-203, and such wholesaler shall remit all taxes imposed under §§ 57-3-302 and 57-3-501, which shall be collected from the hotel based upon its retail sales, and § 57-6-201. For products acquired from a wholesaler by a hotel under this subdivision (21)(F)(iii) that are manufactured by the hotel, the wholesaler may permit the hotel to deliver its products to the location on its premises where such retail sales and samples will be effected, provided the wholesaler permitting such direct shipment must include the amounts delivered in its inventory and depletions for purposes of tax collections;
  10. A hotel under this subdivision (21)(F)(iii) must comply with all the requirements of this chapter and shall be subject to the restrictions imposed upon licenses other than § 57-4-103;
    1. At least thirty (30) rooms for the sleeping accommodations of guests for adequate pay; and
    2. A dining room;
        1. “Hotel” also includes a facility that possesses the following characteristics:
          1. Is located in a building on which construction began prior to 1940;
          2. Is located approximately twenty-two (22) miles south of Interstate 40 on U.S. Highway 412;
          3. Is fronted on the north side by U.S. Highway 412 and is less than one (1) mile from a scenic river as defined in title 11, chapter 13;
          4. Has at least twelve (12) rooms for guest sleeping accommodations;
          5. Has a separate room for conferences or meetings;
          6. Has at least a forty-seat dining area that has been approved by the local health department and that serves meals at least four (4) days a week, with exceptions of closures for private groups or events, seasonal closures, vacations, and periods of general maintenance or remodeling by the owners;
          7. Does not discriminate against any patron on the basis of age, gender, race, religion, or national origin; and
          8. Is located in any county having a population of not less than seven thousand nine hundred one (7,901) nor more than eight thousand (8,000), according to the 2010 federal census or any subsequent federal census;
        2. A hotel under this subdivision (21)(I) must comply with all the requirements of this chapter and shall be subject to the restrictions imposed upon licenses other than § 57-4-103;
      1. Is a public place which has a seating capacity for at least forty (40) patrons and that is kept, used, maintained, advertised and held out to the public as a place where during regular hours of operation:
        1. Alcoholic beverages, beer or wine are served to patrons;
        2. A menu of prepared food is made available to patrons;
        3. The gross revenue from the sale of prepared food is fifty percent (50%) or less than the gross revenue from the sale of alcoholic beverages; provided, however, that gross revenue of more than fifty percent (50%) from the sale of prepared food shall not prevent a facility from receiving a “limited service restaurant” license or subject such facility to a fine from the commission for having gross revenue of more than fifty percent (50%) from the sale of prepared food. For purposes of determining the gross revenue from the sale of prepared food, chips, popcorn, pretzels, peanuts and similar snack items shall not be included in gross revenue from the sale of prepared food sold;
        4. The facility affirmatively establishes, to the satisfaction of the commission, that it has complied and will comply with the requirements of § 57-4-204;
        5. The facility provides adequate security during the regular hours of operation; and
        6. Sleeping accommodations are not provided;
      2. Is located within the jurisdictional boundaries of a political subdivision which has authorized the sale of alcoholic beverages for consumption on the premises as provided in § 57-4-103; and
      3. Is located in an area which is properly zoned for facilities authorized to sell alcoholic beverages for consumption on the premises;

        (A)  “Motor speedway” means a motor sports facility that possesses the following characteristics:

        1. Is located in a county having a population of not less than sixty-seven thousand six hundred (67,600) nor more than sixty-seven thousand nine hundred (67,900), according to the 1990 federal census or any subsequent federal census, and at least one (1) municipality located in such county has adopted liquor by the drink;
        2. Contains a 1.33 mile superspeedway;
        3. Is situated on a site of at least five hundred (500) acres; and
        4. Has a seating capacity of fifty thousand (50,000) with the capability to expand to one hundred fifty thousand (150,000) grandstand seats and one hundred (100) luxury skyboxes;
      4. “Motor speedway” also means a motor sports facility that possesses the following characteristics:
        1. Is located in a county having a population in excess of eight hundred thousand (800,000), according to the 2000 federal census or any subsequent federal census;
        2. Contains a three-quarter-mile oval track with a seating capacity of sixteen thousand (16,000) seats; and
        3. Contains a one-quarter-mile drag strip with a seating capacity of fifteen thousand (15,000) seats;
      5. “Museum” also means an “art museum” which is a building or institution serving as a repository of works of art for public display and further possesses the following characteristics:
        1. The art museum is owned and operated by a bona fide charitable or nonprofit organization which has been in existence for at least twenty-five (25) years;
        2. The art museum is located in a building which contains not less than fifty thousand square feet (50,000 sq. ft.); and
        3. The art museum is located in a former world's fair site; and
      6. “Museum” also means a building or institution serving as a repository or exhibition facility for works of art for public display and further possesses the following characteristics:
        1. The museum is owned and operated by a bona fide charitable or nonprofit organization;
        2. The museum is located in a building which contains not less than one hundred thousand square feet (100,000 sq. ft.);
        3. The museum is located in a building that previously served as a United States postal service facility; and
        4. The museum is located in a municipality or county having a population in excess of five hundred thousand (500,000), according to the 1990 federal census or any subsequent federal census;
      7. “Museum” also means a building or institution serving as a tribute to soul music and which houses a music academy and further possesses the following characteristics:
        1. The museum and music academy is located on the original site of a recording studio; and
        2. The museum and music academy is located in a county having a population in excess of eight hundred thousand (800,000), according to the 2000 federal census or any subsequent federal census;
      8. “Museum” also means an “art museum” which is a building or institution serving as a repository of works of art for public display and further possesses the following characteristics:
        1. The art museum is owned and operated by a bona fide charitable or nonprofit organization;
        2. The museum has been in existence for at least fifty (50) years;
        3. The museum focuses on American art from the colonial period to the present day;
        4. The museum is located in a historical mansion and a sleek contemporary building on the bluffs overlooking the Tennessee River;
        5. The museum does not discriminate against any patron on the basis of age, gender, race, religion or national origin; and
        6. The museum is located in a county having a population of not less than three hundred seven thousand eight hundred (307,800) nor more than three hundred seven thousand nine hundred (307,900), according to the 2000 federal census or any subsequent federal census;
      9. “Museum” also means a building or institution dedicated to the public display, preservation, and promotion of fine metalwork and further possesses the following characteristics:
        1. The museum opened to the public in 1979;
        2. The museum is located on at least three (3) acres overlooking the Mississippi River;
        3. The museum features a fully operational blacksmith shop and sand-casting foundry;
        4. The museum is owned and operated by a bona fide charitable or nonprofit organization; and
        5. The museum is located in a county having a population in excess of eight hundred thousand (800,000), according to the 2000 federal census or any subsequent federal census;
      10. A commercially operated recreational facility possessing each of the following characteristics:
        1. Ownership and operation by a profit type corporation having a capitalization of not less than ten million dollars ($10,000,000);
        2. Situated in a geographical area wholly controlled by the operator of the facility and having not less than six thousand (6,000) acres of contiguous land, not less than five thousand (5,000) acres of which is to be developed and maintained in accordance with sound ecological and environmental practices, such requirement to be subject at all times to the oversight and approval of the department of environment and conservation, which shall not less often than once a year make a written report thereof to the commission. Satisfactory compliance with this requirement and certification thereof by the department to the commission shall be a condition precedent to the issuance or renewal of the permit provided for in § 57-4-201;
        3. Continuous maintenance of lodging accommodations consisting of not less than two hundred (200) hotel or motel rooms in a building or buildings designed for such purpose;
        4. Continuous maintenance of facilities for the accommodation of conventions of not less than four hundred (400) persons;
        5. Maintenance within the recreational area of at least one (1) of the following types of sporting facilities:
          1. A golf course of at least eighteen (18) holes;
          2. A lake covering not less than one hundred (100) acres adapted for boating and fishing;
          3. A ski slope;
        6. Maintenance, in addition to one (1) or more of the facilities enumerated in subdivision (27)(A)(v), of two (2) or more of the following types of recreational facilities:
          1. Area for camping;
          2. Tennis courts;
          3. Swimming pool;
          4. Trails for hiking and/or horseback riding;
          5. Equestrian center;
        7. A twenty-four-hour per day security force approved as to adequacy by the commission;
      11. A hotel, motel or restaurant located within a municipality having a population of one thousand (1,000) or more persons, according to the federal census of 1970 or any subsequent federal census in which at least fifty percent (50%) of the assessed valuation (as shown by the tax assessment rolls or books of the municipality) of the real estate in the municipality consists of hotels, motels, and tourist courts accommodations, providing the voters of the municipality have heretofore by referendum pursuant to § 57-4-103, approved the sale of alcoholic beverages for consumption on the premises, and such referendum shall be authorized, notwithstanding the population requirements set forth in § 57-3-106. For purposes of implementation of this subdivision (27)(B), the sale of alcoholic beverages shall be limited to hotels, restaurants, and clubs as defined in this section. To ensure proper control and development of the tourist industry of such municipality, any applicant for a license under this subdivision (27)(B) shall first obtain approval from a majority of the legislative body of the municipality, which may adopt rules and regulations governing its procedure and setting forth limitations and restrictions including, but not limited to, the number and location of licensed establishments and requiring approval by the legislative body as to the good moral character of each applicant for a license;
        1. A commercially operated recreational facility containing all of the following characteristics:
          1. Ownership and operation by a profit type corporation or partnership;
          2. Situated in a geographical area controlled by the operator of the facility, having not less than two thousand five hundred (2,500) acres of land;
          3. Continuous maintenance of lodging accommodations consisting of not less than one hundred (100) hotel or motel rooms in a building or buildings designed for such purpose;
          4. The maintenance of a ski slope with necessary lifts or tows for use during skiing season;
          5. Continuous maintenance of restaurant facilities for seating at tables of not less than two hundred (200) persons, with adequate kitchen facilities; and
          6. Located within a municipality with a population of not less than one thousand fifty (1,050) nor more than one thousand seventy-five (1,075), according to the 1980 or any subsequent census;
        2. To ensure proper control and development of the tourist industry of such municipality, any applicant for a license under this subdivision (27)(C) shall first obtain approval from a majority of the legislative body of the municipality, which may adopt rules and regulations governing its procedure and setting forth limitations and restrictions including, but not limited to, the number and location of licensed establishments and requiring approval by the legislative body as to the good moral character of each applicant for a license;
      12. A commercially operated facility possessing each of the following characteristics:
        1. Situated in a geographical area controlled by the operator of the facility, having not less than one hundred seventy-nine (179) acres of land;
        2. A public golf course of at least eighteen (18) holes with a practice green and irrigation system;
        3. Such facility has a club house with at least five thousand square feet (5,000 sq. ft.) that can accommodate up to two hundred fifty (250) guests for events;
        4. Has separate meeting rooms for multiple events;
        5. Has a cart barn on the property that holds no less than sixty (60) golf carts;
        6. Such facility has a maintenance shop with at least seven thousand square feet (7,000 sq. ft.);
        7. Is located inside of:
          1. A black bear habitat community; and
          2. A conservation community;
        8. Surrounded by over one hundred (100) rental cabins;
        9. At least fifty percent (50%) of the property boundaries border a national park;
        10. Does not discriminate against any patron on the basis of age, gender, race, religion, or national origin; and
        11. Is located in any county having a population of not less than one hundred twenty-three thousand one (123,001) nor more than one hundred twenty-three thousand one hundred (123,100) according to the 2010 federal census or any subsequent federal census;
      13. A commercially operated recreational facility containing all of the following characteristics:
        1. Ownership and operation by a for-profit corporation or partnership;
        2. Located in a geographic area managed by the operator of the facility, containing a minimum area of one hundred fifty (150) contiguous acres;
        3. Continuous maintenance of lodging accommodations of not less than fifty (50) rooms available for guests, tourists or for business meetings located in a building or buildings designed for accommodations or business meetings;
        4. Maintenance of lakeside marina facilities, a golf course of not less than eighteen (18) holes, and riding trails and stables on the premises;
        5. Located within a municipality with a population of not less than six thousand three hundred seventy-five (6,375) nor more than six thousand four hundred (6,400), according to the 1980 or any subsequent federal census; and
        6. Whose manager shall have been specifically approved by a majority of the legislative body of the municipality in which such licensee is located as being an individual of good moral character;
      14. A facility, whether open to the public or limited to members and guests of the development on which it is located, owned or operated, pursuant to a license by a homeowners or residential association, which facility is kept, used and maintained as a place where meals are served and where meals are actually and regularly served, with adequate and sanitary kitchen facilities and which facility meets all of the following characteristics:
        1. The facility must be located in a county having a population of not less than forty-seven thousand (47,000) nor more than forty-seven thousand five hundred (47,500), according to the 1990 federal census or any subsequent federal census;
        2. The facility must be located on the premises of a planned, gated residential development of at least eighty (80) acres with at least nine thousand (9,000) lineal feet of water frontage on an established and designated navigable waterway; and
        3. The facility must be located within the limits of a development which contains a marina and tennis court facilities;
      15. A club, either for profit or not for profit, which has been in existence for two (2) consecutive years during which time it has maintained a membership of at least three thousand (3,000) members and which maintains club facilities on or adjacent to property offering recreational services available to its members, which services shall include one (1) or more of the following:
        1. Golf course with at least eighteen (18) holes;
        2. Tennis courts;
        3. Marina facilities with a minimum of four hundred (400) slips.

        Any such club whose club facilities are located on the premises of an area meeting the definition of a “premier type tourist resort” under this section may exercise its privileges authorized under this chapter anywhere within such area;

      16. A commercially operated recreational facility, whether open to the public or limited to members and guests of an association or of the development on which it is located, owned and operated by an association or corporation and in connection with an eighteen-hole golf course, which facility is kept, used and maintained as a place where meals are actually and regularly served, with adequate and sanitary kitchen facilities, and which facility meets all of the following characteristics:
        1. The facility must be located in a county having a population of not less than thirty-four thousand seven hundred thirty (34,730) nor more than thirty-four thousand seven hundred sixty (34,760), according to the 1990 federal census or any subsequent federal census;
        2. The facility must be located in a development containing no less than four hundred twenty (420) acres and no more than four hundred fifty (450) acres;
        3. The facility must be located within limits of a development which contains an eighteen-hole golf course;
        4. The facility must have no less than five thousand (5,000) enclosed square feet (5,000 sq. ft.);
        5. The facility must be located no less than one-half (½) mile from the right-of-way of an interstate highway; and
        6. The facility must be located within the limits of a development which contains a lake of not less than twenty-eight (28) acres which is entirely within the limits of the development;
      17. A commercially operated recreational facility possessing each of the following characteristics:
        1. (a)  Ownership and development by a for profit corporation;
          1. (i)  (a)  Ownership and development by a for profit corporation;
          2. Situated in a geographic area controlled by such entity and having not less than twenty-five (25) contiguous acres of land which is divided by a four-lane highway;
          3. Designed to contain picnic facilities, museum buildings, retail sales areas, retail food dispensing outlets, and restaurant areas;
          4. Maintenance of a limited access area containing a former residence, a swimming pool, a handball court, and stables where no pedestrian access is allowed and all guests entering must be carried by a motor vehicle; and
          5. Location within a county having a population of not less than seven hundred seventy thousand (770,000), according to the 1990 federal census or any subsequent federal census;
        2. “Premier type tourist resort,” as defined in this subdivision (27)(I), shall be authorized to sell or serve alcoholic beverages on the premises of such resort only at special functions, wherein attendance is limited to invited guests or groups and not to the general public;
      18. An entity operating a commercial golf related recreational facility, whether open to the public or limited to members and guests of an association or owners and guests of a development upon or adjacent to which the facility is located, which entity or facility meets all of the following criteria:
        1. The facility is located in a county having a population of not less than thirty-four thousand seven hundred thirty (34,730) nor more than thirty-four thousand eight hundred (34,800), according to the 1990 federal census or any subsequent federal census;
        2. The facility is operated in conjunction with an eighteen (18) hole golf course;
        3. The facility is kept, used and maintained as a place where meals are actually and regularly served with such adequate and sanitary kitchen facilities as might be needed to meet the reasonable requirements of its patrons, members, or guests;
        4. The entity does not discriminate or limit the use of the facilities solely on the basis of race, creed, sex, or national origin, and has provided to the commission a written certification of its policy;
        5. Such facility has enclosed clubhouse space of at least five thousand square feet (5,000 sq. ft.);
        6. Such facility is located no less than seven (7) miles and no more than eight (8) miles from an interchange of an interstate highway; and
        7. Such facility is located on a geographic area, owned or operated by the entity, which area contains not less than one hundred fifty-five (155) acres nor more than one hundred seventy (170) acres;
      19. A commercially operated recreational facility whether open to the public or limited to members and guests of an association or of the development on which it is located, owned and operated by an association or corporation and in connection with an eighteen-hole golf course, which facility is regularly kept, used and maintained as a place where meals are actually and regularly served, with adequate and sanitary kitchen facilities, and which facility meets all the following characteristics:
        1. The facility must be located in or adjacent to a real estate development containing no less than one thousand one hundred (1,100) acres and no more than two thousand (2,000) acres;
        2. The facility must have no less than nine thousand (9,000) enclosed square feet;
        3. The facility must be located within the limits of a development which is contiguous to a water reservoir operated and maintained by the United States army corps of engineers during 1998 or any subsequent years; and
        4. Maintenance within the recreational area of the following types of recreational facilities:
          1. Golf course of at least eighteen (18) holes;
          2. Swimming pool;
          3. Tennis court; and
          4. Walking trails;
      20. A resort containing all of the following characteristics:
        1. Has a restaurant, with a current overall seating capacity of two hundred eighty (280), including outside dining service, and which serves over seventy-five thousand (75,000) patrons per year;
        2. Is located immediately adjacent to the Cherokee National Forest, the only national forest in Tennessee and the Cherohala Skyway, one of only twenty (20) highways in the country designated as a national scenic byway;
        3. Is located along the scenic Tellico River, a tributary of the Little Tennessee River;
        4. Currently operates nine (9) cabins, a river walk, and an open-air chapel and pavilion;
        5. After a proposed expansion will include at least thirty (30) cottages, a full-service health and wellness spa, a championship golf course, racquet club, adventure club for canoeing, kayaking, hiking, biking and other outdoor activities, an equestrian club, conference facilities, a hunt and fish club, crafts and education, and history tours; and
        6. Is located within a county having a population of not less than thirty-eight thousand nine hundred (38,900) nor greater than thirty-nine thousand (39,000), according to the 2000 federal census or any subsequent federal census;
      21. A commercially or privately operated recreational facility containing all of the following characteristics:
        1. The facility is located within a platted housing subdivision of not less than four hundred (400) acres nor greater than five hundred twenty-five (525) acres;
        2. The facility is located on or adjacent to an eighteen-hole golf course located within the development;
        3. The facility is located within a development that operates a recreational swimming pool of at least sixty thousand gallons (60,000 gals.);
        4. The facility operates and maintains tennis courts for use by homeowners, visitors, tourists, or guests;
        5. The facility operates a clubhouse for the use of homeowners, visitors, tourists, or guests of at least five thousand total square feet (5,000 sq. ft.) and the clubhouse houses a restaurant with seating at tables for at least forty (40) people and such restaurant has adequate kitchen facilities;
        6. The facility is located within a county with a population of not less than thirty-nine thousand fifty (39,050) nor more than thirty-nine thousand one hundred fifty (39,150), according to the 2000 federal census or any subsequent federal census; and
        7. The facility shall have been providing some or all of the described recreational services for a continuous period of at least four (4) years at the time of licensing;
      22. A commercially operated recreational facility, located adjacent to a navigational river which contains all of the following characteristics:
        1. Such facility has direct access to a navigable waterway;
        2. Such facility contains a minimum of two hundred (200) slips for boats;
        3. Such facility provides boat fuel, boat rental and repair;
        4. Such facility is located upon or adjacent to a public park or preserve, which park is at least one hundred (100) acres in size, and which park contains a swimming pool, tennis courts and at least a nine (9) hole golf course; and
        5. Such facility is located within a county with a population of at least three hundred eighty thousand (380,000), according to the 2000 federal census or any subsequent federal census;
      23. An entity granted a franchise for the operation of a restaurant or food and beverage services on the premises of the premier type tourist resort, and for such purposes a premier type tourist resort shall have the privilege of granting such franchises;
      24. A commercially operated facility which contains all of the following characteristics:
        1. Such facility was licensed as a health club on December 31, 2015;
        2. Such facility only allows members and their invited guests;
        3. Such facility has two (2) swimming pools with one pool having at least fifteen thousand square feet (15,000 sq. ft.) of water surface;
        4. Such facility provides volleyball courts, a basketball court and a recreation area with food service;
        5. Such facility is located within fifteen (15) miles of an airport;
        6. Such facility does not discriminate against any patron on the basis of age, gender, race, religion or national origin; and
        7. Such facility is located within a county having a population of not less than three hundred eighty-two thousand (382,000) nor more than three hundred eight-two thousand one hundred (382,100), according to the 2000 federal census or any subsequent federal census;
      25. A commercially operated facility which contains all of the following characteristics:
        1. Such facility is located no more than three and one-half (3 ½) miles from the right of way of Interstate 40 and fronting on State Highway 92 and has a minimum of eight (8) acres of lake front property with a minimum of five thousand eight hundred feet (5,800') of shore line;
        2. Such facility has at least eighty (80) boat slips and forty-eight (48) dry slips, a boat launching ramp, a full service restaurant seating at least one hundred seventy-five (175) people inside with outside patio dining, a ships store offering boat supplies and gasoline, and an outdoor pavilion;
        3. Such facility provides accommodations consisting of at least twenty (20) lakeside hotel/motel units in a building or buildings designed for such purposes;
        4. Such facility is located within a county having a population of not less than forty-four thousand (44,000) nor more than forty-four thousand nine hundred (44,900), according to the 2000 federal census or any subsequent federal census; and
        5. Such facility shall also include any commercial boat for charter that departs from any such facility if the boat is licensed by the United States Coast Guard to carry not less than fifty (50) passengers on a single vessel and has adequate facilities and equipment for serving regular meals, on regular schedules, or charter trips, while moving through or docked in any county of the state;
      26. A commercially operated facility which at a minimum contains all of the following characteristics:
        1. Such facility is located within one (1) mile of the right-of-way of Interstate 40 and in an area zoned by the municipality as B-3; and
        2. Such facility is located within a county having a population of not less than forty-four thousand (44,000) nor more than forty-four thousand nine hundred (44,900), according to the 2000 federal census or any subsequent federal census;
      27. A commercially operated facility which contains all of the following characteristics:
        1. Such facility is located no more than one-half (½) mile from the right of way of Interstate 75 and accessible to State Highway 68;
        2. Such facility has at least nine thousand square feet (9,000 sq. ft.) of conference space;
        3. Such facility provides accommodations consisting of at least one hundred twenty-five (125) hotel or motel rooms in a building or buildings designed for such purposes;
        4. Such facility provides recreational facilities including an indoor swimming pool;
        5. Such facility does not discriminate against any patron on the basis of age, gender, race, religion or national origin; and
        6. Such facility is located within a county having a population of not less than thirty-eight thousand nine hundred (38,900) nor more than thirty-nine thousand (39,000), according to the 2000 federal census or any subsequent federal census;
      28. A nine-hundred-sixty-acre peninsula gated community located on a lake with ten (10) miles of shoreline, and which facility contains all of the following characteristics:
        1. Has an eighteen-hole golf course and tennis courts;
        2. Has a club house, restaurant, lounge, fitness center, and swimming pool;
        3. Maintains a community garden, community and neighborhood docks and a boat ramp;
        4. Has an equestrian facility with extensive riding trails;
        5. Does not discriminate against any patron on the basis of age, gender, race, religion or national origin; and
        6. Is located in two (2) counties one (1) county having a population of not less than thirty-eight thousand nine hundred (38,900) nor more than thirty-nine thousand (39,000) and the other county having a population of not less than thirty-nine thousand fifty (39,050), nor more than thirty-nine thousand one hundred fifty (39,150), both according to the 2000 federal census or any subsequent federal census;
      29. A facility which contains all the following characteristics:
        1. Has resort lodge condominiums, homes and vacation cottages;
        2. Has an eighteen hole golf course and tennis courts with a pro shop;
        3. Has a swimming pool;
        4. Has rock climbing, hiking and biking trails;
        5. Has a full service spa;
        6. Has banquet and dining services and a business service center;
        7. Does not discriminate against any patron on the basis of age, gender, race, religion or national origin; and
        8. Is located in a county having a population of not less than thirty-nine thousand eight hundred (39,800) nor more than thirty nine thousand eight hundred seventy-five (39,875), according to the 2000 federal census or any subsequent federal census;
      30. It is lawful for any establishment located in a premier type tourist resort as defined in § 67-6-103(a)(3)(B)(iii) which is licensed to serve beer to also serve wine to be consumed on the premises, subject to the further provisions of this chapter other than § 57-4-103;
      31. It is lawful for any establishment located in a municipality which:
        1. Has an approved Tourist Development Zone as set forth in title 7, chapter 88;
        2. Has a AA minor league baseball team; and
        3. Is located in a county with an amusement park, a ski resort, and a national park,

        which is licensed to serve beer to also serve wine to be consumed on the premises, subject to the further provisions of this chapter other than §57-4-103;

      32. A commercially operated recreational facility, located adjacent to a navigable river, that has all of the following characteristics:
        1. Contains at least one hundred (100) boating slips available for lease, rental, or use by guests;
        2. Has one (1) or more restaurant facilities with a combined seating capacity of at least two hundred (200);
        3. Has a lodge with at least fifteen (15) units available for transient lodging; and
        4. Does not discriminate against any patron on the basis of age, gender, race, religion or national origin;
      33. A commercially operated facility that has all of the following characteristics:
        1. Is located no more than six (6) miles from Interstate 40 at exit 427, and on both sides of a county highway known as Harrison Ferry Road. The facility contains a minimum of one hundred forty-three (143) acres, and includes a minimum of twenty-two (22) acres of land zoned commercial for future development at the corner of Back Nine Drive and Mountain View Lane;
        2. Has an eighteen-hole golf course, two (2) practice putting greens, a practice chipping green and a practice area for golf instruction. The facility also contains a large swimming pool, a boat ramp into Douglas Lake, and two (2) tennis courts;
        3. Has a clubhouse with a fully-equipped pro shop, a full-service restaurant seating at least one hundred fifty (150) persons inside, with an outside patio that seats at least seventy (70) persons;
        4. Provides accommodations, consisting of at least twelve (12) hotel/motel units and at least nine (9) villa units; and
        5. Is located within an incorporated municipality having a population of less than five hundred (500), according to the 2000 federal census or any subsequent federal census, within a county having a population of not less than forty-four thousand two hundred (44,200) nor more than forty-four thousand three hundred (44,300), according to the 2000 federal census or any subsequent federal census; and
        6. Does not discriminate against any patron on the basis of age, gender, race, religion or national origin;
      34. An inn that has all of the following characteristics:
        1. Contains at least twelve (12) transient guest rooms in the main house;
        2. Has a separate meeting lodge and facility that also houses at least four (4) new French country transient suites;
        3. Has at least two (2) kitchens on the premises and offers at least two (2) meals daily;
        4. Has an open-air, outdoor, sylvan chapel suitable for the accommodation of wedding ceremonies;
        5. Provides entertainment in the form of cooking demonstrations, storytelling and dulcimer playing;
        6. Is listed in Distinguished Inns of North America, 16th Edition, by Select Registry; and
        7. Does not discriminate against any patron on the basis of age, gender, race, religion or national origin;
      35. A commercially operated facility that has all of the following characteristics:
        1. Is a full service colonial mansion located on an eighty-one-acre estate;
        2. Contains no fewer than eight (8) transient rooms and seventeen (17) bathrooms;
        3. Contains a dining room with capacity for fifty (50) persons that serves at least two (2) meals daily;
        4. Has a heated swimming pool, a fitness center, a sauna, a tennis court and a billiard room;
        5. Has a system of hiking and walking trails;
        6. Is listed in Distinguished Inns of North America, 16th Edition, by Select Registry; and
        7. Does not discriminate against any patron on the basis of age, gender, race, religion or national origin;
      36. A facility that has nine (9) acres of shoreline development on Watts Bar Lake and that has all of the following characteristics:
        1. Has one- to three-bedroom cottages;
        2. Has a marina with two hundred fifty (250) slips, both wet and dry;
        3. Has a restaurant and lounge;
        4. Has a swimming pool;
        5. Has rental boats;
        6. Does not discriminate against any patron on the basis of age, gender, race, religion or national origin; and
        7. Is located in a county having a population of not less than twenty-eight thousand three hundred fifty (28,350) nor more than twenty-eight thousand four hundred fifty (28,450), according to the 2000 federal census or any subsequent federal census;
      37. A development that has all the following characteristics:
        1. Has a well established marina with boat rentals, gasoline, guide services, etc., and a resort operating for more than fifty (50) years;
        2. Includes more than two hundred (200) acres on Watts Bar Lake;
        3. Has forty (40) cottages rented on a daily or weekly basis;
        4. Has a restaurant;
        5. Has walking and nature trails;
        6. Does not discriminate against any patron on the basis of age, gender, race, religion or national origin; and
        7. Is located in a county having a population of not less than twenty-eight thousand three hundred fifty (28,350) nor more than twenty-eight thousand four hundred fifty (28,450), according to the 2000 federal census or any subsequent federal census;
      38. Any facility located in a municipality that has a civil war battlefield:
        1. Of which more than one thousand four hundred (1,400) acres have been designated in the National Register of Historic Places;
        2. For which a management contract has been entered into between the municipality and the Tennessee historical commission;
        3. Which has a self-guided driving tour;
        4. For which long-range plans include walking trails, interpretive signs and a visitor's center with a museum;
        5. At which, every two (2) years, a living history and reenactment of the battle fought in December, 1862 is presented;
        6. That is famous for the southern general's order to his troops to “Charge them both ways”; and
        7. Is located in a county having a population of not less than twenty-five thousand four hundred fifty (25,450) nor more than twenty-five thousand five hundred fifty (25,550), according to the 2000 federal census or any subsequent federal census;
      39. A facility that has at least fourteen (14) acres located on a lake of at least eight thousand (8,000) acres and that has the following characteristics:
        1. Contains at least three hundred and fifty (350) boat slips;
        2. Contains a dry storage facility;
        3. Provides boat rentals;
        4. Contains a marine store;
        5. Contains a full service restaurant with seating for at least one hundred fifty (150) people, as well as a private banquet facility;
        6. Has motel rooms and cabins for rent;
        7. Contains a swimming pool;
        8. Does not discriminate against any patron on the basis of age, gender, race, religion or national origin; and
        9. Is located in a county having a population of not less than fifty-six thousand seven hundred (56,700) nor more than fifty-six thousand eight hundred (56,800), according to the 2000 federal census or any subsequent federal census;
      40. A facility that has three hundred eighty-five (385) acres of development on J. Percy Priest Lake and that has all the following characteristics:
        1. Has a water park;
        2. Has a marina with more than three hundred twenty (320) slips;
        3. Has a recreational vehicle (RV) campground;
        4. Does not discriminate against any patron on the basis of age, gender, race, religion or national origin; and
        5. Is located in a county having a population of not less than five hundred thousand (500,000), according to the 2000 federal census or any subsequent federal census;
      41. A development that has all of the following characteristics:
        1. Has a well established marina with boat slip rentals, gasoline, etc.;
        2. Includes three hundred eighty-five (385) acres on J. Percy Priest Lake;
        3. Has a water park;
        4. Has a recreational vehicle (RV) campground;
        5. Does not discriminate against any patron on the basis of age, gender, race, religion or national origin; and
        6. Is located in a county having a population of not less than five hundred thousand (500,000), according to the 2000 federal census or any subsequent federal census;
      42. A fully staffed overnight accommodations facility that:
        1. Is open twenty-four (24) hours a day, located on thirty-four (34) acres of land, that offers at least one (1) meal per day, along with hiking, a fitness facility, an event lawn, and a retail store;
        2. Has twenty (20) one- and two-bedroom cabins that have kitchens or kitchenettes, wood-burning fireplaces, hot tubs, and high-speed internet access;
        3. Has a one thousand five hundred square foot (1,500 sq. ft.) meeting facility with a capacity of up to one hundred twenty-five (125) persons, and a restaurant with a capacity of up to eighty-five (85) persons, both of which have high-speed internet access; and
        4. Does not discriminate against any patron on the basis of age, gender, race, religion, or national origin;
      43. A commercially operated facility containing all of the following characteristics:
        1. The facility has a marina with approximately one hundred sixty-six (166) wet slips and approximately one hundred thirty-three (133) dry storage units;
        2. The facility is located within a lake-resort, gated residential development of at least one thousand two hundred (1,200) acres having in excess of four hundred fifty (450) single family homes and condominium units;
        3. The facility is located on a lake that has over eight hundred thirty-four (834) miles of shore line;
        4. The facility will have a restaurant with a seating capacity of at least fifty (50) people, serving at least two (2) meals a day;
        5. The facility does not discriminate against any patron on the basis of age, gender, race, religion or national origin; and
        6. The facility is located within a county having a population of not less than thirty-nine thousand eight hundred (39,800) nor more than thirty-nine thousand eight hundred seventy-five (39,875), according to the 2000 federal census or any subsequent federal census;
        1. A commercially-operated facility containing all of the following characteristics:
          1. The facility has on its premises a marina that has at least two hundred fifty (250) covered or uncovered wet slips and at least seventy-five (75) dry rack slips;
          2. The facility has on its premises property leased or available for lease to a boating, yachting or water-based recreational club;
          3. The facility has on its premises a restaurant, providing food service to the public or for private events, with seating in the restaurant for at least fifty (50) persons at tables, whether or not the seating is inside or on a deck or patio adjacent to the restaurant;
          4. The facility has the capacity to serve as a home berth location for a commercial vessel for hire or for public cruises of at least seventy-five feet (75') in length;
        2. When used in this subdivision (27)(JJ), the “facility” under subdivision (27)(JJ)(i) shall include any location within the property designated by the licensee;
        3. A facility under this subdivision (27)(JJ) shall also include any passenger sternwheel paddleboat, licensed by the United States coast guard, with rated passenger capacity of not less than one hundred (100) passengers and which paddleboat shall be at least seventy-five feet (75') in length, which may use the marina facilities as described in subdivision (27)(JJ)(i) for its home or principal secondary port dock. The authority conferred under this subdivision (27)(JJ)(iii), authorizing the sale or distribution of alcoholic beverages, including beer, on any qualified sternwheel paddleboat shall extend only so long as the paddleboat is located at the marina facility described in subdivision (27)(JJ)(i) or is within one hundred (100) miles of the marina facility;
        4. For purposes of obtaining a license under this subdivision (27)(JJ), the commission shall be authorized to issue a license solely to the owner or operator of a sternwheel paddleboat, meeting the qualifications of subdivision (27)(JJ)(iii), whether or not the facility described in subdivision (27)(JJ)(i) receives a license under this chapter;
      44. A commercially operated restaurant located within a county having a population of not less than thirty-nine thousand seven hundred fifty (39,750) nor more than forty thousand (40,000) and also located within the corporate limits of a municipality having a population of not less than seven thousand seven hundred fifty (7,750) nor more than eight thousand (8,000), according to the 2000 federal census or any subsequent federal census, and in addition to satisfying the requirements of subdivision (30)(A), also meets the following additional requirements:
        1. The facility is in a structure of not less than six thousand square feet (6,000 sq. ft.);
        2. The facility has seating at tables, for at least two hundred (200) persons; and
        3. The facility serves at least two (2) meals a day, five (5) days a week, with the exception of holidays, vacations and periods of redecorating;
      45. A commercially operated recreational facility containing all of the following characteristics:
        1. Owning and operating one (1) or more golf courses, that include practice putting greens, chipping greens and a driving range;
        2. Operating a clubhouse facility, of at least eight thousand square feet (8,000 sq. ft.), containing a commercial quality kitchen and seating for at least one hundred (100) persons at tables;
        3. Operating a private clubhouse of at least five thousand square feet (5,000 sq. ft.), with seating at tables for at least eighty (80) persons, and which private clubhouse contains a full service kitchen;
        4. Located on a minimum of one hundred thirty-seven (137) acres; and
        5. Located within a county through which a major interstate passes, supports a Tennessee board of regents university of approximately nine thousand three hundred (9,300) students for the 2006 academic year and whose sports teams are nicknamed the golden eagles;
      46. A facility operated either commercially or on a nonprofit basis as a club containing all of the following characteristics:
        1. A clubhouse having not less than approximately five thousand eight hundred square feet (5,800 sq. ft.);
        2. An eighteen-hole golf course for use by its members and their guests;
        3. A restaurant with a suitable kitchen, dining facilities and equipment serving two (2) meals daily and open six (6) days a week;
        4. Is part of a planned unit development;
        5. Has at least one hundred (100) members regularly paying dues;
        6. Does not discriminate against any patron on the basis of age, gender, race, religion or national origin; and
        7. Is located in a county having a population of not less than three hundred seven thousand eight hundred (307,800) nor more than three hundred seven thousand nine hundred (307,900), according to the 2000 federal census or any subsequent federal census;
      47. It is lawful for a facility providing full service dining to serve wine to be consumed on the premises, subject to the further provisions of this chapter, other than § 57-4-103, that contains the following characteristics:
        1. The facility provides seating at tables for not less than one hundred twenty-five (125) persons and is located on approximately three (3) acres;
        2. The dining area is at least four thousand eight hundred square feet (4,800 sq. ft.);
        3. The facility provides seating, on a deck or a patio, for at least forty (40) persons, weather permitting, which deck or patio is in close proximity to a river or waterway; and
        4. The facility is located in a county with a population of not less than twenty-three thousand (23,000) nor more than twenty-three thousand two hundred (23,200), according to the 2000 federal census or any subsequent federal census;
      48. A commercially operated facility containing all of the following characteristics:
        1. The facility has overnight accommodations for at least thirty-two (32) people in at least twelve (12) private guest rooms with en-suite bathrooms;
        2. The facility has a main dining room which seats at least thirty-two (32) people;
        3. The facility has meeting and conference space, including at least two (2) dedicated conference rooms;
        4. The facility has a historic water-operated grist mill;
        5. The facility does not discriminate against any patron on the basis of age, gender, race, religion or national origin; and
        6. The facility is located within a county having a population of not less than seventeen thousand four hundred (17,400) nor more than seventeen thousand four hundred fifty (17,450), according to the 2000 federal census or any subsequent federal census;
      49. A commercially operated facility containing all of the following characteristics:
        1. The facility has a marina with at least four hundred thirty-five (435) wet slips;
        2. The facility has a minimum of four hundred twelve (412) paved single car parking spaces and in addition at least thirty (30) car/trailer paved parking spaces;
        3. The facility has a restaurant with inside seating for at least seventy-eight (78) persons and patio dining for at least fifty-four (54) persons;
        4. The facility is located within one great circle mile of Tennessee highway 56;
        5. The facility is located on a lake with at least eighteen thousand (18,000) acres of water and at least three hundred forty-two (342) miles of shore line; and
        6. The facility is located within a county having a population of not less than seventeen thousand four hundred (17,400) nor more than seventeen thousand four hundred fifty (17,450), according to the 2000 federal census or any subsequent federal census;
        1. A commercially operated facility containing all of the following characteristics:
          1. Owning and operating a golf course that is open to the public, that includes practice putting and chipping greens and a driving range;
          2. Operating a clubhouse facility of approximately four thousand square feet (4,000 sq. ft.), containing a commercial quality kitchen and seating for at least eighty-three (83) persons inside at tables;
          3. The facility is located at the intersection of State Highway 55 and Pete Sain Road;
          4. The facility does not discriminate against any patron on the basis of gender, race, religion or national origin; and
          5. The facility is located within a county having a population of not less than forty-eight thousand (48,000) nor more than forty-eight thousand one hundred (48,100), according to the 2000 federal census or any subsequent census;
        2. The rights of any facility licensed under this subdivision (27)(QQ) as to activities permitted under this chapter may be held by the entity that owns the facility, the entity that leases the facility, or an entity operating a restaurant pursuant to a written contract with the entity that owns or leases the facility;
      50. A commercially operated recreational facility on at least ninety (90) acres of land that borders the Cherokee National Forest that offers lodging, recreation and restaurant packages to patrons containing all of the following characteristics:
        1. A rustic lodge with at least five (5) private overnight rooms that all possess a king-sized bed, mini-refrigerator, coffee maker, microwave, television, sitting area and private full bathroom, all of which have views of the mountains and are situated in a lodge with a shared great room and hot tub;
        2. At least ten (10) cabins for overnight stays that sleep multiple persons, some of which are company-owned and some of which are privately-owned but rented by the company, and include the following amenities: television, outdoor hot tub on private deck, heat and air conditioning, gas grill, cookware, fireplace, linens and towels and large and small appliances including washer/dryer and all common kitchen appliances;
        3. Riding stables with at least twenty-two (22) stalls for both horses owned by the resort and for overnight lease for or by guests, on-site guided trail rides provided by the owners, a horse arena with a bathroom, mountain biking, hiking, fishing including an on-site stocked pond and swimming in the guest swimming pool;
        4. A dining restaurant that possesses a kitchen and is currently permitted to serve beer that is attached to a larger multi-purpose hall that hosts banquets, dining, dancing, music, live bands and other types of entertainment, all of which are connected to two (2) bars and at least one (1) private room and includes dining upstairs and downstairs and multiple outdoor seating decks, all of which possess a combined seating of at least two hundred (200) persons, that serves at least nine (9) meals on a weekly basis, with the exceptions of closures for private groups that include the year-round hosting of reunions, weddings and corporate workshops and seasonal closures, vacations, general maintenance and remodeling by the owners;
        5. A building that contains an administrative office and a general store complete with all sorts of merchandise for use on and off of the premises of the resort, a building that contains a tack store that sells all sorts of horse-related merchandise and a building that contains a game room;
        6. An outdoor pavilion that possesses a grill and in which other outdoor cooking devices may be used and that is used to serve meals outdoors in combination with foods prepared in the kitchen;
        7. A gazebo used for outdoor weddings;
        8. When used in this subdivision (27)(RR), “facility” includes any location within the property designated by the licensee;
        9. Does not discriminate against any patron on the basis of age, gender, race, religion or national origin; and
        10. Is located within a county having a population of not less than thirty-three thousand five hundred twenty-five (33,525) nor more than thirty-three thousand six hundred (33,600), according to the 2000 federal census or any subsequent federal census;
        1. A commercially operated recreational facility, whether open to the public or limited to members and guests of a corporation, limited liability company, association or of the development in which it is located, owned and operated by a corporation, limited liability company or association, having all of the following characteristics:
          1. The facility must be located in or adjacent to a residential real estate development containing no less than one thousand (1,000) acres and no more than two thousand (2,000) acres, inclusive of the facility;
          2. The facility must have at least three (3) permanent structures, open to the public or to members and their guests, with the largest structure having at least thirty thousand square feet (30,000 sq. ft.) of enclosed space;
          3. The closest boundary of the real estate development in which the facility is located must be located no more than two thousand feet (2,000') from the right-of-way of Interstate 840 and must be directly adjacent to Arno Road;
          4. The facility must maintain the following types of recreational amenities:
            1. A golf course having at least eighteen (18) holes;
            2. At least one (1) swimming pool;
            3. At least one (1) tennis court; and
            4. A fitness facility;
          5. The facility must have at least one (1) room or rooms that are regularly kept, used and maintained as a place where meals are regularly served, with adequate and sanitary kitchen facilities and seating at tables for at least seventy-five (75) persons;
          6. The facility must be located in a county having a population of not less than one hundred twenty-six thousand six hundred (126,600) nor more than one hundred twenty-six thousand seven hundred (126,700), according to the 2000 federal census or any subsequent federal census; and
          7. The facility must not discriminate against any patron on the basis of age, gender, race, religion or national origin;
        2. The premises of any facility licensed under this subdivision (27)(SS) means any or all of the property that constitutes the facility, including swimming pools, tennis courts, golf courses, paths and road crossings. A licensee shall designate the premises to be licensed by the commission by filing a drawing of the premises, which may be amended by the licensee filing a new drawing;
        1. A commercially operated recreational facility which contains each of the following characteristics:
          1. Is located within a county with a population of not less than seventeen thousand (17,000) nor greater than eighteen thousand (18,000), according to the 2010 federal census or any subsequent federal census;
          2. Has located on its premises, stables for the temporary or permanent stabling of horses with a capacity of at least two hundred twenty (220) horses;
          3. Consists of property of at least ten thousand (10,000) acres, contiguous and noncontiguous;
          4. Has located upon its premises trails and horseback riding, wagon trails, campsites with electrical service, bathhouses and a pavilion for cookouts; and
          5. Has a restaurant facility for the preparation and serving of food and beverages to guests of the facility located at the facility;
        2. The rights of the facility as to activities permitted under this chapter may be held by the entity which owns the facility, the entity which leases the facility, or an entity operating the restaurant pursuant to a written contract with the entity which owns or leases the facility;
        3. The facility may be a contiguous parcel of property or may be noncontiguous; provided, that any part of the facility which is noncontiguous to any other part of the facility is separated only by a roadway or street; and
        4. The entity excising the rights of the facility shall be authorized to engage in the activities permitted under this chapter anywhere on the premises of the facility as disclosed to the commission;
      51. A privately owned facility possessing each of the following characteristics:
        1. Is located on at least twenty (20) acres;
        2. Has a restaurant facility with at least one thousand two hundred square feet (1,200 sq. ft.) that seats at least one hundred (100) patrons at tables located both inside and outside the facility;
        3. Has a marina with at least one hundred (100) slips and that provides house boat rentals of at least four (4) house boats;
        4. Has at least four (4) cabins, seven (7) camping slots and at least three (3) RV slots;
        5. Has a boat repair shop and a store that carries boating and skiing type items;
        6. Does not discriminate against any patron on the basis of age, gender, race, religion or national origin; and
        7. Is located within any county having a population of not less than seventeen thousand eight hundred (17,800) nor more than seventeen thousand eight hundred seventy-five (17,875), according to the 2000 federal census or any subsequent federal census;
      52. A commercially operated facility containing all of the following characteristics:
        1. The facility has a marina with at least two hundred forty (240) wet slips;
        2. The facility has a minimum of nine (9) housing units for rent containing nineteen (19) bedrooms;
        3. The facility has a campground with twelve (12) sites containing electric and sewer hookups;
        4. The facility has a minimum of one hundred forty-seven (147) paved single car parking spaces;
        5. The facility has a restaurant with inside seating for at least twenty-eight (28) persons and patio dining for at least forty (40) persons;
        6. The facility has an outdoor pavilion which seats one hundred fifty (150) persons;
        7. The facility is located on Jefferson Road, approximately six and one tenth (6.1) miles from the intersection with Highway 288/Keltonburg Road and thirteen (13) miles from Highway 70;
        8. The facility is located on a lake with at least eighteen thousand (18,000) acres of water and at least three hundred forty-two (342) miles of shore line; and
        9. The facility is located within a county having a population of not less than seventeen thousand four hundred (17,400) nor more than seventeen thousand four hundred fifty (17,450), according to the 2000 federal census or any subsequent federal census;
      53. A commercially operated facility containing all of the following characteristics:
        1. The facility has a minimum of eighty seven (87) parking spaces;
        2. The facility has a restaurant open year-round with inside seating for at least sixty (60) persons and outside seating for at least one hundred nineteen (119) persons;
        3. The facility is located on Highway 96 less than one (1) mile from Center Hill Lake; and
        4. The facility is located within a county having a population of not less than seventeen thousand four hundred (17,400) nor more than seventeen thousand four hundred fifty (17,450), according to the 2000 federal census or any subsequent federal census;
      54. A commercially operated facility containing all of the following characteristics:
        1. The facility has a minimum of eighty five (85) parking spaces;
        2. The facility has a restaurant open year-round at least six (6) days a week with inside seating for at least one hundred (100) persons and outside seating for at least one hundred twenty (120) persons;
        3. The facility is located on Highway 70 less than three (3) miles from Center Hill Lake; and
        4. The facility is located within a county having a population of not less than seventeen thousand four hundred (17,400) nor more than seventeen thousand four hundred fifty (17,450), according to the 2000 federal census or any subsequent federal census;
      55. A commercially operated facility containing all of the following characteristics:
        1. The facility owns and operates an eighteen (18) hole golf course that is open to the public, which includes putting greens and a driving range;
        2. The facility operates a clubhouse facility of approximately five thousand square feet (5,000 sq. ft.), with seating at tables for at least eighty (80) persons and which clubhouse contains a full-service kitchen;
        3. The facility operates a swimming pool;
        4. The facility is located on a minimum of one hundred thirty-three (133) acres;
        5. The facility is located adjacent to old Highway 45W and is situated within a county having a population of not less than forty-eight thousand one hundred twenty-five (48,125) nor more than forty-eight thousand two hundred (48,200), according to the 2000 federal census or any subsequent federal census; and
        6. The facility does not discriminate against any patron on the basis of gender, race, religion or national origin;
      56. A commercially operated facility containing all of the following characteristics:
        1. The facility has a marina with at least five hundred thirty (530) wet slips;
        2. The facility has a minimum of two hundred fifty (250) paved single car parking spaces;
        3. The facility has a restaurant with inside seating for at least eighty (80) persons and outside seating for at least sixty (60) persons;
        4. The facility is located on a lake with at least eighteen thousand (18,000) acres of water and at least three hundred forty-two (342) miles of shore line; and
        5. The facility is located within a county having a population of not less than seventeen thousand four hundred (17,400) nor more than seventeen thousand four hundred fifty (17,450), according to the 2000 federal census or any subsequent federal census;
      57. A commercially operated facility containing all of the following characteristics:
        1. The facility includes a one hundred forty-seven thousand square foot (147,000 sq. ft.) boat and RV showroom and service center with retail sales of all types of camping and boating equipment as well as a boat and RV parts department;
        2. The facility has a two hundred fifty (250) seat full service restaurant;
        3. The facility has a two hundred fifty (250) site campground with two (2) swimming pools, cabins and a lodge;
        4. The facility is a travel center with a store, pizzeria, delicatessen, fuel center;
        5. The facility has an arcade;
        6. The facility is located at 2475 Westel Road; and
        7. The facility is located within a county having a population of not less than forty-six thousand eight hundred (46,800) nor more than forty-six thousand nine hundred (46,900), according to the 2000 federal census or any subsequent federal census;
      58. A commercially operated facility containing all of the following characteristics:
        1. The facility has a marina with at least one hundred one (101) wet slips;
        2. The facility has a minimum of sixty (60) paved single car parking spaces;
        3. The facility has a restaurant with adequate and sanitary kitchen facilities with inside seating for at least forty (40) persons and outside seating for at least one hundred fifty (150) persons and is kept, used and maintained as a place where meals are served and where meals are actually and regularly served when the facility is opened for business; and
        4. The facility is located within a county having a population of not less than thirty-one thousand one hundred (31,100) nor more than thirty-one thousand two hundred (31,200), according to the 2000 federal census or any subsequent federal census;
      59. A commercially operated facility which contains all of the following characteristics:
        1. Is a bed and breakfast homestay, as defined in § 68-14-502(1)(B), that opened in 2008;
        2. Has at least two (2) rooms available for overnight guests;
        3. Is able to prepare on-site custom meals for up to thirty (30) persons;
        4. Offers cooking classes; and
        5. Is located within any county having a population of not less than one hundred eighty-two thousand (182,000) nor more than one hundred eighty-two thousand one hundred (182,100), according to the 2000 federal census or any subsequent federal census;
      60. A commercially operated recreational facility whether open to the public or limited to members and guests of an association or of the development on which it is located, owned, and operated by an association or corporation and in connection with an eighteen-hole golf course which facility is regularly kept, used, and maintained as a place where meals are actually and regularly served, with adequate and sanitary kitchen facilities, and which facility meets all the following characteristics:
        1. The facility must have a clubhouse with no less than six thousand enclosed square feet (6,000 sq. ft.);
        2. The facility must be located within the limits of a development that is within five hundred yards (500 yds.) of a water reservoir operated and maintained by the United States Army corps of engineers during 1998 or any subsequent years;
        3. The facility must be located within at least three (3) miles of an airport with lighted runway of at least three thousand feet (3000') in length;
        4. Maintenance within the recreational area of the following types of recreational facilities:
          1. Golf course of at least eighteen (18) holes;
          2. Swimming pool; and
          3. Tennis court; and
        5. The facility is located within a county having a population of not less than twenty-nine thousand eight hundred (29,800) nor more than twenty-nine thousand nine hundred (29,900), according to the 2000 federal census or any subsequent federal census;
      61. A privately-owned resort and recreational facility possessing each of the following characteristics:
        1. Has at least ninety-five (95) acres located approximately five (5) miles south of Interstate 40 on Tennessee State Highway 13;
        2. Is fronted on the west side by Tennessee State Highway 13 and bordered on the south side by a scenic river as defined in title 11, chapter 13, part 1;
        3. Has at least four (4) cabins;
        4. Has at least thirty (30) recreational vehicle pads and sites with full electrical, water and sewer hookups;
        5. Has at least a forty-seat restaurant which has been approved by the local health department that has an approved beer permit and has food available, with exceptions of closures for private groups or events, seasonal closures, vacations, general maintenance and remodeling by the owners;
        6. When used in this subdivision (27)(EEE), the “facility” shall include any location within the property designated by the licensee;
        7. Does not discriminate against any patron on the basis of age, gender, race, religion, or national origin; and
        8. Is located within any county having a population of not less than seven thousand six hundred (7,600) nor more than seven thousand seven hundred (7,700), according to the 2000 census or any subsequent federal census; and the legislative body of such county adopts a resolution endorsing such resort and recreational facility as a premier type tourist resort as defined in this subdivision (27);
      62. A commercially operated facility containing all of the following characteristics:
        1. Has a restaurant serving an upscale menu featuring lobster tail, crab legs and fresh cut steaks;
        2. Is located on a lake by a marina;
        3. Has a boat dock within walking distance of the restaurant;
        4. Has indoor seating for approximately one hundred thirty (130) diners and outdoor dining on the patio with seating for approximately one hundred eighty (180);
        5. Offers live entertainment on the patio at its Tiki Bar; and
        6. Is located in any county having a population of not less than forty-four thousand two hundred (44,200) nor more than forty-four thousand three hundred (44,300), according to the 2000 federal census or any subsequent federal census;
      63. A privately-owned resort and recreational facility possessing each of the following characteristics:
        1. Has a dock with marina which has at least one hundred seventy (170) boat slips which is located on or near the four hundred eighty-two (482) mile marker on the Tennessee River;
        2. Has an outside gazebo which is used for various functions;
        3. Has a restaurant with a dining room of at least four thousand two hundred square feet (4,200 sq. ft.), which seats at least two hundred (200) persons both indoors and outdoors, including an outdoor balcony; and which serves meals at least four (4) days on a weekly basis including Sunday brunch, with exceptions of closures for private groups or events; and seasonal closures, vacations, general maintenance and remodeling by the owners;
        4. When used in this subdivision (27)(GGG), the “facility” shall include any location within the property designated by the licensee; and
        5. Does not discriminate against any patron on the basis of age, gender, race, religion, or national origin;
      64. A commercially operated facility containing all of the following characteristics:
        1. Regularly serves meals at tables and continuously maintains adequate kitchen facilities;
        2. Has indoor seating for approximately one hundred twenty (120) diners and outdoor seating for approximately one hundred thirty (130);
        3. Is located on the banks of the Cumberland River;
        4. Has a transient boat dock within walking distance of the restaurant;
        5. Specializes in serving catfish and is often referred to as “the Catfish Place under the bridge”; and
        6. Is located in any county having a population of not less than thirty-nine thousand one hundred (39,100) nor more than thirty-nine thousand two hundred (39,200), according to the 2010 federal census or any subsequent federal census;
      65. A bed and breakfast possessing each of the following characteristics:
        1. The house is approximately ten thousand square feet (10,000 sq. ft.) and has rooms for approximately twelve (12) guests to stay overnight;
        2. Has a smaller upper level patio and a larger, lower level patio;
        3. Has a main dining room on the first floor which can accommodate approximately seventy (70) guests. The main dining room is one (1) large room with floor to ceiling windows providing one hundred eighty degrees (180°) of lakefront viewing;
        4. Has accommodations for an additional forty (40) guests for outside dining;
        5. Is located in the Long Branch portion of Dale Hollow Lake;
        6. The property on which the bed and breakfast is situated has space for weddings, family reunions and other large gatherings on the large outside portion of the property; and
        7. Is located in any county having a population of less than seven thousand eight hundred fifty-one (7,851) nor more than seven thousand eight hundred sixty-five (7,865), according to the 2010 federal census or any subsequent federal census;
      66. A hotel possessing all of the following characteristics:
        1. Contains at least twenty five (25) rooms for the sleeping accommodations of guests;
        2. Is registered as a national historic landmark;
        3. Is located within a central business improvement district; and
        4. Is located in any county having a population of not less than four hundred thirty-two thousand two hundred (432,200) nor more than four hundred thirty-two thousand three hundred (432,300), according to the 2010 federal census or any subsequent federal census;
      67. A commercially operated recreational facility possessing each of the following characteristics:
        1. Is located at least two hundred feet (200') from a natural lake that is located in or near a state park, which has waterfowl hunting and fishing is available year round;
        2. Has a restaurant which has:
          1. A beer license;
          2. A commercial kitchen; and
          3. Seating for at least seventy-five (75); and
        3. Has a boat ramp and boat dock;
      68. A commercially operated facility containing all of the following characteristics:
        1. The facility has a restaurant open year-round with inside seating for at least seventy-five (75) persons;
        2. The facility has a minimum of eighty-five (85) parking spaces;
        3. The facility is located on Highway 70 less than three (3) miles from Center Hill Lake; and
        4. The facility is located within a county having a population of not less than eighteen thousand seven hundred (18,700) nor more than eighteen thousand seven hundred fifty (18,750), according to the 2010 federal census or any subsequent federal census;
        1. A commercially operated recreational facility possessing all of the following characteristics:
          1. A golf course of at least eighteen (18) holes;
          2. Wooded trails for horseback riding;
          3. A fully stocked fishing pond;
          4. At least three (3) tennis courts;
          5. Located in any county having a population of not less than one hundred eighty-three thousand one hundred (183,100) nor more than one hundred eighty-three thousand two hundred (183,200), according to the 2010 federal census or any subsequent federal census; and
          6. Is located no more than two thousand feet (2,000') from the right-of-way of Interstate 840 and must be directly adjacent to Arno Road;
        2. The premises of any facility licensed under this subdivision (27)(MMM) means any or all of the property that constitutes the facility, including swimming pools, tennis courts, golf courses, paths, and road crossings. A license shall designate the premises to be licensed by the commission by filing a drawing of the premises, which may be amended by the licensee filing a new drawing;
      69. A commercially owned marina containing all of the following characteristics:
        1. Operates as a marina on approximately forty-six (46) acres of land;
        2. Has a restaurant with at least one hundred ten (110) seats;
        3. Has approximately two hundred (200) boat slips;
        4. Has seven (7) cabins; and
        5. Is located in a county having a population of not less than forty-four thousand five hundred (44,500) nor more than forty-four thousand six hundred (44,600), according to the 2010 federal census or any subsequent federal census;
      70. A commercially operated facility containing all of the following characteristics:
        1. Operates as a hunting lodge on approximately four hundred (400) acres of land;
        2. Has adequate kitchen facilities and a dining area within the hunting lodge with seating of at least fifty (50) at tables;
        3. Has capacity to sleep at least thirty (30) guests within the main hunting lodge and at least twenty (20) guests in a cabin located on the property; and
        4. Is located off I-40 at Exit 311 in any county having a population of not less than fifty-six thousand (56,000) nor more than fifty-six thousand one hundred (56,100), according to the 2010 federal census or any subsequent federal census;
      71. A commercially operated facility open to the public for persons twenty-one (21) years of age or older that has all of the following characteristics:
        1. Is located within three (3) miles of Dale Hollow Lake;
        2. Has a kitchen that serves food to customers;
        3. Is licensed to sell beer;
        4. Is located in an A frame building built in 1968;
        5. Has a deck of more than one thousand square feet (1,000 sq. ft); and
        6. Is located in any county having a population of not less than seven thousand eight hundred fifty-one (7,851) nor more than seven thousand eight hundred sixty-five (7,865), according to the 2010 federal census or any subsequent federal census;
        1. A commercially operated resort, restaurant, marina and recreational facility possessing all of the following characteristics:
          1. Is located on at least five (5) acres but no more than seven (7) acres at day marker four (4) as designated by the Tennessee Valley authority on Norris Lake;
          2. Has a marina with at least one hundred forty-five (145) boat slips, most of which are contracted for use on an annual basis, but also includes use for drive-ups;
          3. Rents pontoon, ski, and house boats;
          4. Has a marina store;
          5. Has a restaurant with a full service kitchen with combined seating indoors and outdoors for at least one hundred (100) patrons;
          6. Has a restaurant that serves at least twelve (12) meals on a weekly basis with exceptions of closures for private groups or events, seasonal reasons, vacations, general maintenance and remodeling by the owners;
          7. Has special events and weddings inside and outside;
          8. Has at least fifty-five (55) condominiums with at least thirty (30) of the condominiums available for rental on a nightly or weekly basis;
          9. Has a restaurant that possesses a beer permit for on and off-premises consumption;
          10. Does not discriminate against any patron on the basis of age, gender, race, religion, or national origin; and
          11. Is located in a county having a population of not less than forty thousand seven hundred (40,700) nor more than forty thousand eight hundred (40,800), according to the 2010 federal census or any subsequent federal census;
        2. The facility licensed pursuant to this subdivision (27)(QQQ) shall make food available at any time when alcoholic beverages are being served.
        3. When used in this subdivision (27)(QQQ), “facility” means any location within the property as designated by the licensee;
      72. A commercially operated marina, restaurant, and recreational facility possessing all of the following characteristics:
        1. Is located on at least thirty-two (32) acres of land located off Old Awalt Road;
        2. Has a marina with at least two hundred fifty (250) wet slips located on Tims Ford Lake;
        3. Has a restaurant with a dining room to accommodate at least two hundred (200) patrons;
        4. Includes at least five (5) rental cabins and a motel with at least (5) rental units on its grounds; and
        5. Has a fuel dock with a stationary tank that holds at least six thousand gallons (6,000 gals.) of fuel;
      73. A commercially operated mountaintop resort and recreational facility possessing all of the following characteristics:
        1. Is located on at least one thousand two hundred (1,200) acres at an altitude of between two thousand five hundred feet (2,500') and three thousand feet (3,000');
        2. Provides nightly lodging in at least eleven (11) furnished suites with balconies, all of which are located in at least two (2) buildings;
        3. Has a restaurant with a full service kitchen with combined seating indoors and outdoors for at least one hundred (100) patrons; and which serves at least twelve (12) meals on a weekly basis with exceptions of closures for private groups or events; and seasonal closures, vacations, general maintenance and remodeling by the owners; provided, however, that food shall be made available at any time when alcoholic beverages are being served; and such restaurant shall already possess a beer permit for on-premises consumption;
        4. Hosts special on-site events including weddings, receptions, reunions, corporate meetings, and club or group gatherings;
        5. Has a wooden walkway through chimney rock formations;
        6. Has a heliport with at least two (2) landing pads;
        7. When used in this subdivision (27)(SSS), “facility” includes any location within the property as designated by the licensee;
        8. Does not discriminate against any patron on the basis of age, gender, race, religion, or national origin; and
        9. Is located in a county having a population of not less than forty thousand seven hundred (40,700) nor more than forty thousand eight hundred (40,800), according to the 2010 census or any subsequent federal census;
      74. A commercially owned marina, resort, and recreational facility possessing each of the following characteristics:
        1. Includes a full service marina that includes at least one hundred thirty (130) boat slips with the capacity to have three hundred seventy-five (375) covered boat slips ranging in size from twenty-four feet (24') to thirty feet (30') deep; and which is located opposite the one hundred and thirty-three and one-third R (133.3R) mile marker on the Clinch River on Norris Lake;
        2. Has a public pump station;
        3. Has a restaurant with at least one hundred (100) seats both indoors and outdoors which serves at least six (6) meals on a weekly basis, with exceptions of closures for private groups or events, and seasonal closures, vacations, general maintenance, and remodeling by the owners;
        4. Has a ship store;
        5. Has gas docks;
        6. Has a marina campground with at least twenty (20) campsites with electric, water, and wastewater connections;
        7. Does not discriminate against any patron on the basis of age, gender, race, religion, or national origin; and
        8. The facility is located within a county having a population of not less than thirty-two thousand two hundred (32,200) nor more than thirty-two thousand three hundred (32,300), according to the 2010 federal census or any subsequent federal census. When used in this subdivision (27)(TTT), “facility” includes any location within the property designated by the licensee;
        1. A commercially or privately operated facility containing all of the following characteristics:
          1. Is located on Tellico Lake, containing a minimum area of six hundred fifty (650) contiguous acres;
          2. Has an information and sales center;
          3. Has public access walking trails;
          4. Has a championship golf course of at least eighteen (18) holes;
          5. Does not discriminate against any patron on the basis of age, gender, race, religion or national origin; and
          6. Is located within any county having a population of not less than forty-eight thousand five hundred (48,500) nor more than forty-eight thousand six hundred (48,600), according to the 2010 federal census or any subsequent federal census;
        2. The premises of any facility licensed under this subdivision (27)(UUU) shall mean any or all of the property that constitutes the facility, including, but not limited to, clubhouses, restaurants, gift and pro shops, marinas, swimming pools, tennis courts, golf courses, and paths and road crossings. A licensee shall designate the premises to be licensed by the commission by filing a drawing of the premises and such drawing may be amended by the licensee filing a new drawing;
      75. A commercially operated private tennis club possessing all of the following characteristics:
        1. Is located on at least thirteen (13) acres of land located off Racquet Club Way;
        2. Has at least ten (10) indoor hard tennis courts located indoors;
        3. Has at least five (5) hard tennis courts and at least twelve (12) clay tennis courts located outdoors; and
        4. Includes a five thousand square foot (5,000 sq. ft.) club house on its grounds;
      76. A commercially operated recreational facility possessing all of the following characteristics:
        1. Has a banquet room that seats not less than seventy-five (75) people;
        2. Has a semi-private golf course of at least eighteen (18) holes;
        3. Has a club house, restaurant that serves food, and swimming pool;
        4. Is located not less than one (1) mile from Interstate 40 and is adjacent to Golf Course Road;
        5. Is located in a county having a population of not less than thirty-five thousand six hundred (35,600) nor more than thirty-five thousand seven hundred (35,700), according to the 2010 federal census or any subsequent federal census;
      77. A commercially owned marina, resort and recreational facility possessing each of the following characteristics:
        1. Includes a full service marina that includes at least one hundred (100) covered boat slips, at least thirty-five (35) mooring line buoys, at least five (5) floating home rentals, and offers for rental at least fourteen (14) watercraft of various types including ski-boats, single and double deck pontoons, jet skis, and standup paddle boats; and which is located at Big Creek Mile eight.zero L (8.0L), Whitman Hollow Branch Norris Reservoir;
        2. Has a restaurant with at least seventy-five (75) seats combined indoors and outdoors, which serves at least ten (10) meals on a weekly basis, with exceptions of closures for private groups or events, and seasonal closures, vacations, general maintenance and remodeling by the owners; provided, however, that food shall be made available at any time that alcoholic beverages are being served;
        3. Has at least seven (7) campsites;
        4. Has at least two (2) vacation rental homes;
        5. Does not discriminate against any patron on the basis of age, gender, race, religion, or national origin; and
        6. Is located in any county having a population of not less than forty thousand seven hundred (40,700) nor more than forty thousand eight hundred (40,800), according to the 2010 federal census or any subsequent federal census;
      78. A commercially owned marina, resort and recreational facility possessing each of the following characteristics:
        1. Has a full service marina that includes at least three hundred (300) boat slips and is located on Norris Lake;
        2. Has a restaurant with at least seventy-two (72) indoor seats and seventy-two (72) outdoor seats, which serves at least ten (10) meals on a weekly basis, with exceptions of closures for private groups or events, and seasonal closures, vacations, general maintenance and remodeling by the owners; provided, however, that food shall be made available at any time that alcoholic beverages are being served;
        3. Has a motel with at least twenty-four (24) rooms;
        4. Has at least two (2) vacation rental cabins and at least twenty-three (23) recreational vehicle (RV) slots;
        5. Does not discriminate against any patron on the basis of age, gender, race, religion, or national origin; and
        6. Is located in any county having a population of not less than forty thousand seven hundred (40,700) nor more than forty thousand eight hundred (40,800), according to the 2010 federal census or any subsequent federal census;
      79. A commercially operated facility possessing each of the following characteristics:
        1. Has adequate kitchen facilities and a dining area within the facility that has a seating capacity of at least fifty (50);
        2. Is within four (4) miles of Douglas Lake;
        3. Is located on the corner of Greenhill Road and Hwy 25-70 within one (1) mile of I-40 at Exit 415; and
        4. Is located in a county having a population of not less than fifty-one thousand four hundred (51,400) nor more than fifty-one thousand five hundred (51,500), according to the 2010 federal census or any subsequent federal census;
        1. A privately owned resort and recreational facility possessing each of the following characteristics:
          1. Is located off U.S. Highway 421 in any county having a population of not less than eighteen thousand two hundred (18,200) nor more than eighteen thousand three hundred (18,300), according to the 2010 federal census or any subsequent federal census;
          2. Has a semi-private golf course of at least eighteen (18) holes;
          3. Has at least twenty (20) accommodation units;
          4. Has at least two (2) tennis courts;
          5. Has at least one (1) swimming pool;
          6. Has a restaurant that seats at least fifty (50) people; and
          7. Has a meeting facility;
        2. The premises of any resort and recreational facility licensed under this subdivision (27)(AAAA) shall mean any or all of the property that constitutes the resort and facility, including, but not limited to, clubhouses, restaurants, gift and pro shops, swimming pools, tennis courts, golf courses, and paths and road crossings. A licensee shall designate the premises to be licensed by the commission by filing a drawing of the premises, and such drawing may be amended by the licensee filing a new drawing;
      80. It is lawful for any establishment located in a municipality having a population of not less than six hundred (600) nor more than six hundred ten (610), according to the 2010 federal census or any subsequent federal census, which is located in a county having a population of not less than two hundred sixty-two thousand six hundred (262,600) nor more than two hundred sixty-two thousand seven hundred (262,700), according to the 2010 federal census or any subsequent federal census, that is licensed to serve beer to also serve alcoholic beverages and wine to be consumed on the premises, subject to the further provisions of this chapter other than § 57-4-103;
      81. A commercially owned marina, resort, and recreational facility possessing each of the following characteristics:
        1. Includes a full-service marina that includes at least one hundred fifty (150) boat slips and is located on Norris Lake;
        2. Has at least eight (8) campsites;
        3. Has a restaurant with at least eighty (80) seats, which serves at least ten (10) meals on a weekly basis, with exceptions of closures for private groups or events, and seasonal closures, vacations, general maintenance, and remodeling by the owners; provided, however, that food shall be made available at any time that alcoholic beverages are being served;
        4. Does not discriminate against any patron on the basis of age, gender, race, religion, or national origin; and
        5. Is located in any county having a population of not less than forty thousand seven hundred (40,700) nor more than forty thousand eight hundred (40,800), according to the 2010 federal census or any subsequent federal census;
      82. A commercially operated facility possessing each of the following characteristics:
        1. Is located within a one thousand foot (1,000') radius from the intersection of U.S. Highway 41A and University Avenue/Lake O'Donnell Road on property owned by a private institution of higher education, the campus of which is at least ten thousand (10,000) acres;
        2. Is located in any county having a population of not less than forty-one thousand (41,000) nor more than forty-one thousand one hundred (41,100), according to the 2010 federal census or any subsequent federal census;
        3. Has prepared and served hot food for on-site dining with indoor seating for at least twenty-five (25) persons for at least twenty-four (24) months; and
        4. Does not discriminate against any patron on the basis of age, gender, race, religion, or national origin;
      83. An entity that is authorized by the department of environment and conservation to operate a restaurant or other food and beverage service on the premises of a state park;
      84. It is lawful for any establishment located in a municipality having a population of not less than four hundred ninety (490) nor more than four hundred ninety-nine (499), according to the 2010 federal census or any subsequent federal census, which is located in a county having a population of not less than thirty-two thousand two hundred (32,200) nor more than thirty-two thousand three hundred (32,300), according to the 2010 federal census or any subsequent federal census, that is licensed to serve beer to also serve alcoholic beverages and wine to be consumed on the premises, subject to the further provisions of this chapter other than § 57-4-103;
      85. A commercially operated facility possessing each of the following characteristics:
        1. Is located in any county having a metropolitan form of government with a population of more than five hundred thousand (500,000), according to the 2010 federal census or any subsequent federal census;
        2. Regularly serves meals;
        3. Contains an adequate and sanitary kitchen;
        4. Has seating for not less than forty (40) people at tables;
        5. Is located on floatation devices on the Cumberland river in close proximity to a marina; and
        6. May be seasonally closed;
      86. A commercially operated recreational facility possessing each of the following characteristics:
        1. Is located:
          1. On at least two thousand five hundred (2,500) acres, approximately eight (8) miles from an interstate highway; and
          2. Along a waterway that flows into a river, a portion of which has been designated as a scenic river;
        2. Has at least twelve (12) cabins and at least three hundred fifty (350) campsites;
        3. Has a motor cross trail or trails and a horseback riding trail or trails;
        4. Has a restaurant with seating for at least one hundred (100);
        5. Has a one thousand six hundred square foot (1,600 sq. ft.) stage at an amphitheater that seats approximately two thousand five hundred (2,500); and
        6. Has least five (5) hotels or motels located near the facility;
      87. A commercially operated facility containing all of the following characteristics:
        1. Is located:
          1. On at least twenty-two (22) acres;
          2. Within a county having a population of not less than seventy-two thousand three hundred (72,300) nor more than seventy-two thousand four hundred (72,400), according to the 2010 federal census or any subsequent federal census; and
          3. At least two (2) miles north of the city of Cookeville, Tennessee;
        2. Has been an LLC corporation since 2013;
        3. Accommodates overnight lodging for up to fourteen (14) guests;
        4. Is available for special events for up to five hundred (500) guests, including, but not limited to, weddings, receptions, corporate events, fundraisers, and reunions; and
        5. Has on-site parking for up to two hundred fifty (250) vehicles;
      88. A commercially operated facility possessing all of the following characteristics:
        1. Is located in a home built in 1892;
        2. Is located on 3rd Avenue South;
        3. Has eight thousand square feet (8,000 sq. ft.) of space including an outside courtyard;
        4. Hosts on-site special events including weddings, receptions, and group gatherings;
        5. Has an adequate and sanitary kitchen; and
        6. Is located in any county having a population of not less than one hundred eighty-three thousand one hundred (183,100) nor more than one hundred eighty-three thousand two hundred (183,200), according to the 2010 federal census or any subsequent federal census;
      89. A commercially operated facility containing all of the following characteristics:
        1. The facility is located on at least two hundred fifty (250) acres;
        2. The facility provides camping and additional overnight accommodations;
        3. The facility serves at least one (1) meal per day in a dining room that seats at least fifty (50) persons; and
        4. The facility must be located within a commercial district which contains a former state penitentiary that was in operation for a minimum of fifty (50) years;
      90. A commercially operated facility possessing each of the following characteristics:
        1. Has been in operation as an inn since November 3, 2002;
        2. Is located within one-half (½) mile of a city park;
        3. Has a total of eight (8) guest rooms in the main house;
        4. Has a separate cottage that also houses at least one (1) transient suite, as well as workspaces and storage;
        5. Has at least one (1) kitchen on the premises and offers at least one (1) meal daily;
        6. Has an open-air, outdoor patio suitable for the accommodation of wedding ceremonies and other events;
        7. Has been designated historically significant by a county historical commission; and
        8. Is located in any county having a population of more than five hundred thousand (500,000), according to the 2010 federal census or any subsequent federal census;
      91. A commercially operated facility possessing all of the following characteristics:
        1. Has a restaurant open at least six (6) days a week with seating at tables for at least one hundred (100) persons;
        2. Is licensed to sell beer;
        3. Is located in a structure of not less than six thousand square feet (6,000 sq. ft.);
        4. Is located on Drew Howard Road; and
        5. Is located in any county having a population of not less than fifty-six thousand (56,000) nor more than fifty-six thousand one hundred (56,100), according to the 2010 federal census or any subsequent federal census;
      92. A commercially operated marina, resort, and recreational facility that:
        1. Is located between day markers fifteen (15) and sixteen (16) on Douglas Lake;
        2. Operates not less than eighty-eight (88) covered slips, one hundred ten (110) open slips, twelve (12) transient slips, and six (6) house boat slips;
        3. Operates a full-service store offering fuel, live bait and tackle, food, and beverages;
        4. Is open not less than three hundred sixty-three (363) days per year;
        5. Rents pontoons, fishing boats, and paddle boards;
        6. Operates a boat ramp that is open year-round;
        7. Operates a recreational vehicle (RV) campground with not less than seventy (70) RV sites;
        8. Operates not less than seven (7) rental properties; and
        9. Is located in a county having a population of not less than fifty-one thousand four hundred (51,400) nor more than fifty-one thousand five hundred (51,500), according to the 2010 federal census or any subsequent federal census;
      93. A commercially operated facility possessing each of the following characteristics:
        1. The facility operates a full service hotel;
        2. The facility operates a restaurant with not less than thirty-two (32) seats in the dining room, eight (8) seats in the bar, and twenty-eight (28) outdoor seats located under a wrap-around porch;
        3. The facility operates a nine-hole golf course and a golf lodge;
        4. The facility serves as a wedding and events venue; and
        5. The facility is located within one (1) mile of Highway 41A and within two (2) miles of Lake O'Donnell in a county with a population of not less than forty-one thousand (41,000) and not more than forty-one thousand one hundred (41,100), according to the 2010 federal census or any subsequent federal census;
      94. A commercially operated facility possessing all of the following characteristics:
        1. Has a restaurant open at least six (6) days a week with seating at tables for at least one hundred (100) persons and with additional seasonal seating on a patio for at least eighty (80) persons;
        2. Is licensed to sell beer;
        3. Is located in a structure of not less than two thousand five hundred square feet (2,500 sq. ft.);
        4. Is located on Peavine Road; and
        5. Is located in any county having a population of not less than fifty-six thousand (56,000) nor more than fifty-six thousand one hundred (56,100), according to the 2010 federal census or any subsequent federal census;
        1. A commercially operated facility having all of the following characteristics:
          1. The facility has approximately sixty-one thousand square feet (61,000 sq. ft.) of interior space;
          2. The facility is located not more than six thousand feet (6,000') southwest of a federal interstate highway and not more than two hundred feet (200') west of a federal highway;
          3. The property that the facility is located on is not less than five hundred seventy-five feet (575') and not more than six hundred fifteen feet (615') above sea level;
          4. The facility was originally constructed in 2017;
          5. The facility has one (1) permanent structure containing five (5) stories and includes at least one (1) commercial kitchen, an atrium with a glass ceiling having a height of at least thirty feet (30') with live trees, and a rooftop deck with table service;
          6. The facility is located in or adjacent to a commercial real estate development containing approximately one hundred (100) specialty stores and eateries, and a movie theater;
          7. The facility is located within one hundred feet (100') of a commercial bank that is a member of the federal deposit insurance corporation;
          8. The facility is approximately one thousand eight hundred twenty feet (1,820') to the northeast of Sugartree Creek;
          9. The facility is approximately four hundred seventy feet (470') to the northwest of the main building of a public high school that was originally constructed before 1939;
          10. The facility is approximately one thousand four hundred fifty feet (1,450') to the southwest of a public library that was originally constructed before 2000;
          11. The facility is located within a county with a metropolitan form of government having a population of not less than six hundred thousand (600,000), according to the 2010 federal census or any subsequent federal census; and
          12. The facility must not discriminate against any patron on the basis of age, gender, race, religion, or national origin;
        2. The premises of any facility licensed under this subdivision (27)(QQQQ) means any or all of the property that constitutes the facility. A licensee shall designate the premises to be licensed by the commission by filing a drawing of the premises, which may be amended by the licensee filing a new drawing;
      95. An agritourism facility possessing all of the following characteristics:
        1. Is located on at least three hundred (300) owned or leased acres;
        2. Is located within a county having a metropolitan form of government and a population of not less than six hundred thousand (600,000), according to the 2010 federal census or any subsequent federal census;
        3. Is bounded on one (1) side by at least three-quarters (¾) of a mile of the Cumberland River and on the other side by one-half (½) of a mile of a state scenic highway;
        4. Has been certified as an organic farm for a period of at least three (3) years prior to the date of the initial application for a license;
        5. Is primarily zoned agricultural and operates an on-farm market on that site in addition to possessing substantial acreage of green space at the date of initial application for a license; and
        6. Maintains meeting centers for community events;
        1. A commercially operated facility having all of the following characteristics:
          1. The facility is located on approximately six (6) acres of land that is adjacent to two (2) permanent structures which are owned by the same owner of the facility having approximately seventy thousand square feet (70,000 sq. ft.) of retail and office commercial space, and is located no more than three hundred feet (300') from a federal highway;
          2. The facility has at least one (1) permanent structure with approximately sixty thousand square feet (60,000 sq. ft.) located no more than five hundred feet (500') from a federal highway and less than two thousand five hundred feet (2,500') south of a commercial railroad track. The structure is not less than five hundred twenty-five feet (525') and not more than five hundred seventy-five feet (575') above sea level. The structure was renovated in 2016 and 2017;
          3. The facility formerly housed a supermarket business that closed in 2012;
          4. The facility is approximately two thousand two hundred feet (2,200') to the south of a facility that is accredited by the Association of Zoos and Aquariums that is open to the public;
          5. The facility is located no more than seven thousand feet (7,000') from a railyard of a Class 1 railroad, as defined by the surface transportation board of the United States department of transportation; and
          6. The facility is located in a county with a metropolitan form of government having a population of not less than five hundred thousand (500,000), according to the 2010 federal census or any subsequent federal census;
        2. The premises of any facility licensed under this subdivision (27)(SSSS) means any or all of the property that constitutes the facility. The licensee shall designate the premises to be licensed by the commission by filing a drawing of the premises, which may be amended by the licensee filing a new drawing. The entire designated premises is covered under one (1) license issued under this subdivision (27)(SSSS). The licensee and any other entity in the facility licensed under chapter 4 of this title may, upon filing notice with the commission, share a common licensed area on the premises of the facility. The commission shall enforce chapter 4 of this title against each licensee on the premises of the facility and shall not cite, penalize, or take any other adverse action against a licensee for any violation committed by another licensee within a common licensed area on the premises of the facility. There is a rebuttable presumption of liability for a specific licensee for any underage sale based on the specific type of glass or the brand on the cup provided to the minor. In the absence of a glass or cup identifying the licensee, the commission may determine which licensee to cite for an underage sale. If the commission is unable to determine which licensee committed a violation after conducting a reasonable investigation, the commission may issue a citation to one (1) or more licensees that share the common licensed area where the violation occurred;
        3. The licensee and any other licensed entity in the facility that holds a license under this chapter may store beer and alcoholic beverages in a central storage location in the facility. Each licensed entity shall store its inventory of beer and alcoholic beverages in a separately locked cage or other storage area;
        4. Notwithstanding any provision of chapter 5 of this title to the contrary, the premises of any facility licensed under this subdivision (27)(SSSS) means, for beer permitting purposes, any or all of the property that constitutes the facility. The beer permittee shall designate the premises to be permitted by the local beer board by filing a drawing of the premises, which may be amended by the beer permittee filing a new drawing. The entire designated premises is covered under one beer permit issued under chapter 5 of this title. The beer permittee and any other entity in the facility that holds a beer permit issued by the local beer board may, upon filing notice with the beer board, share a common permitted area on the premises of the facility. The beer board shall enforce chapter 5 of this title against each permittee on the premises of the facility and shall not cite, penalize, or take any other adverse action against a permittee for any violation committed by another permittee within a common permitted area on the premises of the facility. There is a rebuttable presumption of liability for a specific permittee for any underage sale based on the specific type of glass or the brand on the cup provided to the minor. In the absence of a glass or cup identifying the permittee, the beer board may determine which permittee to cite for an underage sale. If the beer board is unable to determine which permittee committed a violation after conducting a reasonable investigation, the beer board may issue a citation to one (1) or more permittees that share the common permitted area where the violation occurred;
        5. Notwithstanding § 57-3-806(e), the owner of the facility may prohibit or restrict, through its lease or other agreements with other businesses, the on-premise sale of beer or alcoholic beverages by other businesses at the facility;
        6. Notwithstanding § 57-4-101(n), table service is not required for the service of alcoholic beverages or beer as authorized by this subdivision (27)(SSSS); and
        7. The facility, landlord, or any licensee shall provide periodic security for the entire licensed premises;
        1. A commercially operated recreational facility, whether open to the public or limited to members and guests of a corporation, limited liability company, or association, or of a development in which it is located, owned, and operated by a corporation, limited liability company, or association, having all of the following characteristics:
          1. The facility is located in or adjacent to a residential real estate development containing between seven hundred (700) and eight hundred (800) acres, a portion of which was formerly the home of a music industry entertainer who began her career with a successful recording at the age of thirteen (13);
          2. The facility has at least one (1) permanent structure, open to the public or to members and their guests, having at least two thousand square feet (2,000 sq. ft.);
          3. The closest boundary of the real estate development in which the facility is located must be located no more than three thousand feet (3,000') from the right-of-way of Interstate 840 and situated between Cox and Patton roads;
          4. The facility maintains a golf course having at least eighteen (18) holes, which has a current or past golf professional on staff at the golf course;
          5. The facility has at least one (1) room or rooms that are regularly kept, used, and maintained as a place where meals are regularly served, with adequate and sanitary kitchen facilities and seating at tables for at least thirty (30) persons;
          6. The facility is located on property with elevations that vary between less than seven hundred fifty feet (750') above sea level to more than nine hundred fifty feet (950') above sea level;
          7. The facility is located in a county having a population of not less than one hundred eighty-three thousand one hundred (183,100) nor more than one hundred eighty-three thousand two hundred (183,200), according to the 2010 federal census or any subsequent federal census;
          8. The planning commission of a county in which the facility is located has approved of subdividing the property into more than four hundred (400) residential lots that can be offered for sale for home construction; and
          9. The facility does not discriminate against any patron on the basis of age, gender, race, religion, or national origin;
        2. The premises of any facility licensed under this subdivision (27)(TTTT) shall mean any or all of the property that constitutes the facility, including swimming pools, tennis courts, golf courses, paths, and road crossings. A licensee shall designate the premises to be licensed by the commission by filing a drawing of the premises, which may be amended by the licensee filing a new drawing;
        1. A commercially operated facility having all of the following characteristics:
          1. The facility is located on approximately twenty-seven (27) acres of land that is adjacent to a tributary of Arrington Creek and located along U.S. Route 96;
          2. The facility has at least one (1) permanent structure constructed in 2016 with at least eight thousand four hundred square feet (8,400 sq. ft.) of climate-controlled space;
          3. The facility is on property that has a lake with an island having approximately nine thousand square feet (9,000 sq. ft.) of space that contains outdoor amenities, including a sound system;
          4. The facility is located in a county having a population of not less than one hundred eighty-three thousand one hundred (183,100) and not more than one hundred eighty-three thousand two hundred (183,200), according to the 2010 federal census or any subsequent federal census; and
          5. The facility does not discriminate against any patron on the basis of age, gender, race, religion, or national origin;
        2. The premises of any facility licensed under this subdivision (27)(UUUU) means any or all of the property that constitutes the facility, including a barn, man-made island, paths, and road crossings. A licensee shall designate the premises to be licensed by the commission by filing a drawing of the premises, which may be amended by the licensee filing a new drawing;
        1. A commercially operated facility possessing the following characteristics:
          1. The facility is located on at least twenty (20) acres;
          2. The facility provides overnight accommodations with no less than fifty (50) guest rooms;
          3. The facility serves at least one (1) meal per day in a dining room that seats at least seventy-five (75) persons;
          4. The facility is located on property that is within one-quarter (1/4) mile of the intersection of Carters Creek Pike and Southall Road; and
          5. The facility is located in a county having a population of not less than one hundred eighty-three thousand one hundred (183,100) nor more than one hundred eighty-three thousand two hundred (183,200), according to the 2010 federal census or any subsequent federal census;
        2. The premises of any facility licensed under this subdivision (27)(VVVV) means any or all of the property that constitutes the facility, including restaurants, cabins, lodges, clubhouses, swimming pools, tennis courts, golf courses, paths, and road crossings. A licensee shall designate the premises to be licensed by the commission by filing a drawing of the premises, which may be amended by the licensee filing a new drawing;
        3. Any facility licensed under this subdivision (27)(VVVV) may be issued one (1) or more licenses for consumption on the premises;
        4. Any facility licensed under this subdivision (27)(VVVV) may seek an additional license as a caterer under § 57-4-102(6);
        5. Any facility licensed under this subdivision (27)(VVVV) may hold any of the licenses authorized under this subdivision (27)(VVVV) or may grant a franchise to one (1) or more entities for any or all such licenses;
        6. Any facility licensed under this subdivision (27)(VVVV) may deliver sealed bottles to any area within the licensed premises of the facility;
      96. A commercially operated facility possessing each of the following characteristics:
        1. The facility operates a restaurant with not less than fifty (50) seats in the dining room, not less than six (6) seats at the bar, and outdoor seating on the wrap-around porch;
        2. The restaurant is equipped to serve breakfast, lunch, and dinner and does so on a regular basis;
        3. The facility operates an eighteen-hole golf course and has a large, log cabin style clubhouse with not less than seven thousand square feet (7,000 sq. ft.);
        4. The facility serves as a wedding and event venue; and
        5. The facility is located not more than six (6) miles from Interstate 40 and Interstate 840 and is situated in a county having a population of not less than one hundred thirteen thousand nine hundred (113,900) and not more than one hundred fourteen thousand (114,000), according to the 2010 federal census and any subsequent federal census;
      97. A facility operated either commercially or on a nonprofit basis that:
        1. Is a community theatre and event center that officially opened in 1934;
        2. Was renovated and reopened in 1974;
        3. As of April 12, 2018, operates as a 501(c)(3) nonprofit organization;
        4. Is a historic community and private event venue; and
        5. Is located in a municipality with a population of not less than fifteen thousand sixty (15,060) and not more than fifteen thousand sixty-nine (15,069), according to the 2010 and any subsequent federal census;
      98. A commercially operated facility that is:
        1. Located on approximately two hundred forty-seven (247) acres, subject to a conservation easement on approximately two hundred (200) of the acres;
        2. Located on a peninsula adjacent to the Tennessee River;
        3. Located on property across which an abandoned railroad bed lies;
        4. A venue for weddings, meetings, and events; and
        5. Located in a county with a population of not less than one hundred twenty-three thousand one (123,001) nor more than one hundred twenty-three thousand one hundred (123,100), according to the 2010 or any subsequent federal census;
      99. A commercially operated facility that:
        1. Is located on at least sixty (60) acres of land which came from an original land grant with a home on the property built in 1781;
        2. Has a stream with a dam on the premises;
        3. Has a restaurant that was primarily built from two wrecked barns, that serves a full menu of hot foods at least four (4) days per week, that possesses a full service kitchen, that has seating inside for at least sixty (60) persons at tables, and that has outdoor patio seats for at least twenty-five (25) persons;
        4. Has a pavilion that seats at least one hundred twenty-five (125) persons;
        5. Hosts various events, including, but not limited to, weddings, civic and other club meetings, church groups, and car shows; and
        6. Is located in a county with a population of not less than fifty-six thousand eight hundred (56,800) and not more than fifty-six thousand nine hundred (56,900), according to the 2010 or any subsequent federal census;
      100. A commercially operated facility that:
        1. Is located on approximately fifty-five (55) to seventy-five (75) acres;
        2. Is located on the banks of the Powell River;
        3. Has a restaurant that serves a full menu of hot foods at least four (4) days per week, that possesses a full service kitchen which includes at least a stove top, an oven, a refrigerator, and a freezer, that has at least three thousand five hundred square feet (3,500 sq. ft.) inside, that has an outdoor deck of at least one thousand five hundred square feet (1,500 sq. ft.), that has seating inside for at least eighty (80) persons at tables, and that has outside deck seating for at least eighty (80) persons at tables;
        4. Possesses a beer license;
        5. Makes available kayaks and tubes for rent for floating on the Powell River; and
        6. Is located in a county with a population of not less than thirty-two thousand two hundred (32,200) and not more than thirty-two thousand three hundred (32,300), according to the 2010 or any subsequent federal census;
        1. A commercially operated facility that:
          1. Is located on at least one-half (½) acre of land with at least one hundred sixty feet (160') of road frontage and is in a building with a convenience store with separate entrances;
          2. Has a restaurant with a license to serve beer, and which serves a full menu of hot foods at least five (5) days per week, except for seasonal closings and renovations, and possesses a full-service kitchen with seating in the main dining area for at least fifty (50) persons at tables, a bar seating area of at least forty (40) persons at the bar and tables, an outdoor patio area with seats and picnic tables for at least forty (40) persons, an outdoor tiki bar with seating for at least eight (8) persons at the bar, and a covered porch off the bar area with at least eight (8) seats, and which hosts live music on a regular weekly basis;
          3. Has an enclosed recreational and events building, with its own entrances, including garage doors, of at least two thousand three hundred square feet (2,300 sq. ft.), which is fully plumbed and in which pool, darts, and corn hole are played, and which hosts various private events and ticketed public events with an admission fee; and
          4. Is located in a county with a population of not less than thirty-two thousand two hundred (32,200) nor more than thirty-two thousand three hundred (32,300), according to the 2010 or any subsequent federal census;
        2. The premises of any facility licensed under this subdivision (27)(BBBBB) means any and all of the property that constitutes the facility. A licensee shall designate the premises to be licensed by the commission by filing a drawing of the premises, which may be amended by the licensee filing a new drawing;
        1. A commercially operated facility that:
          1. Is located on at least one hundred seventy-five (175) acres of land that is situated on Pennington Bend adjacent to the Cumberland River;
          2. Serves as a venue for weddings, meetings, tournaments, and events;
          3. Includes an 18-hole golf course, a clubhouse with a restaurant that serves lunch and dinner with seating for at least sixty (60) guests, a golf shop, locker rooms, a covered outdoor pavilion with seating for at least two hundred (200) guests, and meeting rooms;
          4. Is located less than one (1) mile from a hotel containing at least two thousand eight hundred (2,800) rooms, six hundred forty thousand square feet (640,000 sq. ft.) of meeting space, and nine (9) acres of indoor gardens;
          5. Is located in a county with a metropolitan form of government having a population of not less than five hundred thousand (500,000), according to the 2010 federal census or any subsequent federal census; and
          6. Does not discriminate against any patron on the basis of age, gender, race, religion, or national origin;
        2. The premises of any facility licensed under this subdivision (27)(CCCCC) means any or all of the property that constitutes the facility. The licensee shall designate the premises to be licensed by the commission by filing a drawing of the premises, which may be amended by the licensee filing a new drawing. The entire designated premises is covered under one (1) license issued under this subdivision (27)(CCCCC); and
        3. Notwithstanding any provision of chapter 5 of this title to the contrary, the premises of any facility licensed under this subdivision (27)(CCCCC) means, for beer permitting purposes, any or all of the property that constitutes the facility. The beer permittee shall designate the premises to be permitted by the local beer board by filing a drawing of the premises, which may be amended by the beer permittee filing a new drawing. The entire designated premises is covered under one (1) beer permit issued under chapter 5 of this title;
        1. A commercially operated facility having all of the following characteristics:
          1. The facility is located on approximately three hundred and sixty (360) acres of land that is adjacent to a reservoir of the Tennessee River created by Watts Bar Dam;
          2. The facility is located less than two (2) miles west of an area designated as a wildlife management area by the Tennessee fish and wildlife commission that is open to the public;
          3. The facility is located within five (5) miles of Highway 72 in a county with a population of not less than fifty-four thousand one hundred (54,100) and not more than fifty-four thousand two hundred (54,200), according to the 2010 federal census or any subsequent federal census;
          4. The facility is approximately twelve thousand feet (12,000') southeast of a private airport identified by the federal aviation administration;
          5. The property that the facility is located on is not less than seven hundred twenty-five feet (725') above sea level nor more than one thousand feet (1000') above sea level;
          6. The facility includes a restaurant, day spa, tennis courts, barn, farmhouse, fish pond, boat dock, hiking trails, cottages, and a full service inn, with at least twenty (20) rooms for lodging;
          7. The facility serves as a venue for weddings, meetings, conferences, and events; and
          8. The restaurant at the facility serves breakfast and dinner and caters for events, with seating for at least two hundred (200) guests;
        2. The premises of any facility licensed under this subdivision (27)(DDDDD) means any or all of the property that constitutes the facility. The licensee shall designate the premises to be licensed by the commission by filing a drawing of the premises, which may be amended by the licensee filing a new drawing. The entire designated premises is covered under one (1) license issued under this subdivision (27)(DDDDD);
        3. Notwithstanding any provision of chapter 5 of this title to the contrary, the premises of any facility licensed under this subdivision (27)(DDDDD) means for beer permitting purposes any or all of the property that constitutes the facility. The beer permittee shall designate the premises to be permitted by the local beer board by filing a drawing of the premises, which may be amended by the beer permittee filing a new drawing. The entire designated premises is covered under one (1) beer permit issued under chapter 5 of this title; and
        4. The requirements of § 57-5-105(b)(1) do not apply to any facility licensed under this subdivision (27)(DDDDD);
      101. A commercially operated facility having the following characteristics:
        1. The facility was built in 1894 and has been restored to represent its original features;
        2. The facility has a seating capacity for approximately one hundred (100) persons;
        3. The facility is a venue for weddings, receptions, reunions, and other similar events, and opened for business in January of 2017; and
        4. The facility is located in a county with a population of not less than fifty-two thousand seven hundred (52,700) and not more than fifty-two thousand eight hundred (52,800), according to the 2010 or any subsequent federal census;
      102. A commercially operated facility possessing each of the following characteristics:
        1. The facility is a restaurant floating on Tims Ford Lake at a commercially operated marina on Sail Away Lane;
        2. The facility is accessible by both water and land, with docking areas for watercraft and parking areas for vehicles;
        3. The facility is licensed to sell beer; and
        4. The facility is located in a county having a population of not less than forty-one thousand (41,000) and not more than forty-one thousand one hundred (41,100), according to the 2010 or any subsequent federal census;
        1. A commercially operated recreational facility, whether operated by a corporation, limited liability company, or association, having all of the following characteristics:
          1. The facility is located on Cordell Hull Lake on property leased from the United States army corps of engineers;
          2. The facility has at least one hundred twenty (120) boat slips ranging in size up to sixty feet (60') in length;
          3. The facility includes a full-service restaurant open to the public;
          4. The facility maintains at least four (4) two-bedroom cabins and at least four (4) hotel rooms available for rent to the public;
          5. The facility operates a full-service campground with at least twenty (20) campsites with septic, electric, and potable water hook-ups;
          6. The facility is located within a county having a population of not less than eleven thousand six hundred (11,600) nor more than eleven thousand seven hundred (11,700), according to the 2010 federal census or any subsequent federal census; and
          7. The facility does not discriminate against any patron on the basis of age, gender, sexual orientation, race, religion, or national origin;
        2. The premises of any facility licensed under this subdivision (27)(GGGGG) includes all of the property constituting the facility. A licensee shall designate the premises to be licensed by the commission by filing a drawing of the premises, which may be amended by the licensee filing a new drawing;
        1. A commercially operated facility that:
          1. Has a full-service restaurant that stands alone, or is part of a larger building or complex, but has its own entrance;
          2. Has a full-service kitchen that possesses at least one (1) of each the following: a stove; an oven; a refrigerator; and a freezer;
          3. Is open at least five (5) days per week, and serves at least twelve (12) meals each week;
          4. Has seating for at least seventy-five (75) persons at tables and has seating in the bar area at the bar, on stools around tables, or chairs around tables;
          5. Is located on at least eighteen (18) acres; and
          6. Is located in a county having a population of not less than thirty-two thousand two hundred (32,200) and not more than thirty-two thousand three hundred (32,300), according to the 2010 federal census or any subsequent federal census;
        2. The premises of any facility licensed under this subdivision (27)(HHHHH) means any or all of the property that constitutes the facility; and
        3. The property described under this subdivision (27)(HHHHH) may be divided into individual parcels or groups of parcels, and any commercial facility located on any of these parcels that meets the criteria in this subdivision (27)(HHHHH) is deemed to be a premier type tourist resort for purposes of obtaining a license;
      103. A commercially operated facility possessing each of the following characteristics:
        1. The facility is located within six and one-half (6.5) miles of Interstate 24 in any county having a population of not less than thirteen thousand seven hundred (13,700) nor more than thirteen thousand seven hundred fifty (13,750), according to the 2010 federal census or any subsequent federal census;
        2. The facility is located on Charlie Roberts Road;
        3. The facility is licensed to sell beer; and
        4. The facility is a music, concert, and entertainment venue located in a cave that is home to a public television program;
      104. A commercially operated restaurant that:
        1. Was built in 1892;
        2. Has not less than one thousand two hundred ninety-five square feet (1,295 sq. ft.);
        3. Has seating for not less than thirty-two (32) persons;
        4. Is located not more than five hundred feet (500') from Dobbins Branch; and
        5. Is located in a county with not less than one hundred eighty-three thousand one hundred (183,100) and not more than one hundred eighty-three thousand two hundred (183,200), according to the 2010 or any subsequent federal census;
      105. A commercially operated facility that:
        1. Was built in 1977;
        2. Operates a market and country store;
        3. Is located on approximately three and one-half (3 ½) acres;
        4. Is located not more than three thousand feet (3,000') from the junction of the Harpeth River and Wilkie Branch;
        5. Serves prepared food on the premises; and
        6. Is located in a county with not less than one hundred eighty-three thousand one hundred (183,100) and not more than one hundred eighty-three thousand two hundred (183,200), according to the 2010 or any subsequent federal census;
      106. A commercially operated facility that:
        1. Operates as a community performing arts and civics center in a city with a population of not less than eighteen thousand six hundred fifty (18,650) and not more than eighteen thousand six hundred fifty-nine (18,659), according to the 2010 or any subsequent federal census;
        2. Was originally built as a school in 1886;
        3. Contains an auditorium with a full stage, a proscenium arch, and seating for not less than four hundred (400) persons; and
        4. Contains conference and meeting rooms and a local history museum;
      107. A commercially operated facility that:
        1. Is a resort comprised of approximately four hundred sixty (460) acres adjacent to the Cumberland River;
        2. Operates two (2) eighteen-hole championship golf courses;
        3. Operates a restaurant that seats forty-six (46) persons;
        4. Is utilized as a venue for weddings and similar events with garden seating for up to two hundred (200) persons, banquet room seating for up to one hundred fifty (150) persons, and gallery seating for up to sixty (60) persons;
        5. Was originally established in 1986; and
        6. Is located in a county with a metropolitan form of government and a population of not less than five hundred thousand (500,000) persons, according to the 2010 or any subsequent federal census;
      108. A commercially operated facility that:
        1. Operates a restaurant with seating for approximately fifty (50) patrons, with an extended porch for additional seating;
        2. Operates an event center that serves as a venue for weddings, concerts, and similar events;
        3. Is located within one (1) mile of Dale Hollow Lake, and within one hundred feet (100') of the Dale Hollow Quarry;
        4. Is located on approximately eighty-five (85) acres; and
        5. Is located in a county with a population of not less than seven thousand eight hundred fifty-one (7,851) and not more than seven thousand eight hundred sixty-five (7,865), according to the 2010 or any subsequent federal census;
        1. A commercially operated facility having all of the following characteristics:
          1. The facility is located on approximately twenty-two (22) acres of land;
          2. The facility is located less than three (3) miles south of an area designated as a state park consisting of approximately nine hundred (900) acres that is open to the public and adjacent to a state forest having at least nine thousand (9,000) acres;
          3. The facility is located within five (5) miles of Interstate 840 in a county with a population of not less than one hundred thirteen thousand nine hundred fifty (113,950) and not more than one hundred forty thousand (140,000), according to the 2010 federal census or any subsequent federal census;
          4. The facility is approximately fifteen thousand feet (15,000 ft.) east of a private motor racing complex originally constructed in approximately 2001 with a seating capacity of more than ten thousand (10,000);
          5. The facility includes a cabin, pier, bridge, amphitheater, commercial kitchen, shop, pond, hall with an adjacent courtyard, a climate-controlled event center, and a manor constructed in the 1830s having at least seven (7) guest rooms for lodging;
          6. The facility serves as a venue for weddings, meetings, conferences, and events; and
          7. The restaurant at the manor serves breakfast and dinner, and caters for events, with seating for at least forty-five (45) guests. The facility has two (2) event centers that can accommodate at least two hundred (200) guests at each center;
        2. The premises of any facility licensed under this subdivision (27)(OOOOO) means any or all of the property that constitutes the facility. The licensee shall designate the premises to be licensed by the commission by filing a drawing of the premises, which may be amended by the licensee filing a new drawing. The entire designated premises is covered under one (1) license issued under this subdivision (27)(OOOOO);
        3. Notwithstanding any provision of chapter 5 of this title to the contrary, the premises of any facility licensed under this subdivision (27)(OOOOO) means for beer permitting purposes any or all of the property that constitutes the facility. The beer permittee shall designate the premises to be permitted by the local beer board by filing a drawing of the premises, which may be amended by the beer permittee filing a new drawing. The entire designated premises is covered under one (1) beer permit issued under chapter 5 of this title;
        4. The requirements of § 57-5-105(b)(1) do not apply to any facility licensed under this subdivision (27)(OOOOO); and
        5. Any facility licensed under this subdivision (27)(OOOOO) may seek an additional license as a caterer pursuant to § 57-4-102(6);
        1. A commercially operated facility having all of the following characteristics:
          1. Is located on Norris Lake;
          2. Has a marina with not less than one hundred seventy (170) slips;
          3. Has not less than seven (7) houses and twenty-two (22) floating houses available for rent;
          4. Has a restaurant with indoor and outdoor seating for at least one hundred seventy (170) patrons;
          5. Does not discriminate against any patron on the basis of age, gender, race, religion, or national origin; and
          6. Is located in any county having a population of not less than forty thousand seven hundred (40,700) nor more than forty thousand eight hundred (40,800), according to the 2010 federal census or any subsequent federal census; and
        2. The premises of any facility licensed under this subdivision (27)(PPPPP) means any or all of the property that constitutes the facility. The licensee shall designate the premises to be licensed by the commission by filing a drawing of the premises, which may be amended by the licensee filing a new drawing. The entire designated premises is covered under one (1) license issued under this subdivision (27)(PPPPP);
        1. A commercially operated facility having all of the following characteristics:
          1. Operates a hotel with sixteen (16) guest rooms, with each floor other than the first floor equipped with a chef's kitchen, living room with a fireplace, and dining table;
          2. Operates a catering kitchen for events on the premises;
          3. Has event space of over eight hundred square feet (800 sq. ft.) located on the first and fourth floors;
          4. Is a venue for weddings, dinner parties, business retreats, reunions, and similar events; and
          5. Is located in a city with a metropolitan form of government and a population of not less than five hundred thousand (500,000), according to the 2010 or any subsequent federal census; and
        2. The premises of any facility licensed under this subdivision (27)(QQQQQ) means any or all of the property that constitutes the facility. The licensee shall designate the premises to be licensed by the commission by filing a drawing of the premises, which may be amended by the licensee filing a new drawing. The entire designated premises are covered under one (1) license issued under this subdivision (27)(QQQQQ);
        1. A commercially operated facility that:
          1. Is an event and music venue that holds concerts and hosts a farmers market;
          2. Is located in a building built in the early 1900s by David Hugh Corlette;
          3. Contains a specialty grocery store and offers fresh food service, with seating for approximately eighteen (18) patrons;
          4. Began operating in August of 2018;
          5. Has approximately three thousand three hundred square feet (3,300 sq. ft.) of commercial floor space;
          6. Sits adjacent to Horton Highway;
          7. Is within five hundred feet (500') of a community center and artsitorium; and
          8. Is located in a county with a population of not less than one hundred eighty-three thousand one hundred (183,100) and not more than one hundred eighty-three thousand two hundred (183,200), according to the 2010 and any subsequent federal census; and
        2. The premises of a facility licensed under this subdivision (27)(RRRRR) means any or all of the property that constitutes the facility. A licensee shall designate the premises to be licensed by the commission by filing a drawing of the premises, which may be amended by the licensee filing a new drawing;
      109. A commercially operated facility possessing each of the following characteristics:
        1. Has a marina with at least eighty-five (85) boat slips on Dale Hollow Lake at the confluence of the East and West Forks of the Obey River;
        2. Has a restaurant with seating for approximately eighty (80) patrons;
        3. Has assorted boats and at least twelve (12) cabins available for rent; and
        4. Is located in a county having a population of not less than five thousand (5,000) and not more than five thousand one hundred (5,100), according to the 2010 federal census or any subsequent federal census;
      110. A commercially operated facility possessing each of the following characteristics:
        1. Is located approximately one (1) mile from Dale Hollow Lake, containing an area of ninety (90) acres;
        2. Has a six-thousand-square-foot barn with a commercial kitchen used for events;
        3. Has at least two (2) cabins for rent; and
        4. Is located on Bolestown Road in a county having a population of not less than five thousand (5,000) and not more than five thousand one hundred (5,100), according to the 2010 federal census or any subsequent federal census;
      111. A commercially owned marina containing all of the following characteristics:
        1. Is located on at least twenty-five (25) acres of land located off of Livingston Boat Dock Road in a county having a population of not less than seven thousand eight hundred fifty-one (7,851) and not more than seven thousand eight hundred sixty-five (7,865), according to the 2010 federal census or any subsequent federal census;
        2. Has a two-story restaurant that seats at least one hundred eighty (180) people;
        3. Has at least three hundred fifty-five (355) boat slips and a full-service marina on Dale Hollow Lake; and
        4. Includes at least ten (10) rental cabins;
      112. A commercially owned marina containing all of the following characteristics:
        1. Is located on at least forty (40) acres of land located off of state highway 294 in a county having a population of not less than seven thousand eight hundred fifty-one (7,851) and not more than seven thousand eight hundred sixty-five (7,865), according to the 2010 federal census or any subsequent federal census;
        2. Has a restaurant that seats at least fifty (50) people;
        3. Has approximately three hundred fifty (350) boat slips and a full-service marina on Dale Hollow Lake; and
        4. Includes at least eleven (11) rental cabins;
        1. A commercially operated facility that:
          1. Is located on approximately two hundred seventy (270) acres of land and sits approximately nineteen (19) miles south of highway 24 in a county with a population of not less than forty-five thousand (45,000) and not more than forty-five thousand one hundred (45,100), according to the 2010 and any subsequent federal census;
          2. Is located on property that is separately licensed to produce, bottle, and store distilled spirits;
          3. Is located on property that offers tours and tastings, as well as the retail sale of merchandise and bottles of spirits and contains the global headquarters for a premium Tennessee whiskey company;
          4. Is located on property that includes a welcome center, three (3) tasting rooms, distillery building, barrel storage facilities, a pond, museum, bar, restaurant, commercial kitchen, miniature golf course, and live music venue;
          5. Is located on property that serves as a horse breeding and training facility;
          6. Is located on property that is a production site and a venue for weddings, meetings, conferences, concerts, and special events; and
          7. Has a restaurant that serves lunch and dinner, and caters for events with seating for at least forty-five (45) guests;
        2. The commission and any beer board having jurisdiction over the facility may issue one (1) or more licenses to one (1) or more different persons or entities that meet the qualifications of this subdivision (27)(WWWWW) provided, that the persons or entities obtaining licenses under this subdivision (27)(WWWWW)(ii) and any manufacturer licensed under § 57-3-202 comply with the requirements of § 57-4-110;
        3. The premises of a facility licensed under this subdivision (27)(WWWWW) means any or all of the property that constitutes the facility; provided, that the premises must not include the premises of a manufacturer licensed under § 57-3-202 or any other facility licensed under this subdivision (27)(WWWWW), except as authorized pursuant to § 57-4-101(p). The licensee shall designate the premises to be licensed by the commission by filing a drawing of the premises, which may be amended by the licensee filing a new drawing; and
        4. Notwithstanding any provision of chapter 5 of this title to the contrary, the premises of any facility licensed under this subdivision (27)(WWWWW) means for beer permitting purposes any or all of the property that constitutes the facility; provided, however, that the premises must not include the premises of a licensee under § 57-3-202 or any other facility licensed under this subdivision (27)(WWWWW), except as authorized pursuant to § 57-4-101(p). The beer permittee shall designate the premises to be permitted by the local beer board by filing a drawing of the premises, which may be amended by the beer permittee filing a new drawing;
      113. A commercially operated restaurant, resort, and boat dock with fuel having the following characteristics:
        1. Possesses at least twenty (20) acres of U.S. corps of engineers leased water and water frontage on Old Hickory Lake and two thousand feet (2000') of river channel at the southeast corner of the confluence of Old Hickory Lake and State Highway 109;
        2. Has operated for at least sixty (60) straight years on this site;
        3. Possesses at least sixty-five (65) full service paved camp sites;
        4. Possesses boat slips for at least two hundred fifty (250) boats; and
        5. Is located on at least ten (10) acres of real property at that site;
      114. A commercially operated facility that:
        1. Includes an eighteen-hole golf course, a seven-thousand-square-foot clubhouse with a pro shop, banquet room, and restaurant with seating for at least forty (40) patrons;
        2. Contains at least one hundred (100) acres and less than two hundred (200) acres; and
        3. Is located less than one (1) mile from Fort Loudon Lake on Kingston Pike in a county having a population of not less than four hundred thirty-two thousand two hundred (432,200) nor more than four hundred thirty-two thousand three hundred (432,300), according to the 2010 federal census or any subsequent federal census;
      115. A commercially operated independent and assisted living facility possessing the following characteristics:
        1. Is located in a county having a population of not less than nine hundred thousand (900,000), according to the 2010 federal census or any subsequent federal census;
        2. Has both independent and assisted living facilities available and provides memory care and respite service;
        3. Has several full-service restaurants and dining rooms to service the residents but that are also open to the public and that serve three (3) chef-prepared meals per day;
        4. Has a complete wellness and fitness facility available that accommodates physical and occupational therapy;
        5. Has complete recreational facilities for its residents;
        6. Has not less than one hundred thirty-five (135) individual living unit apartments for residents;
        7. Does not discriminate against any patron on the basis of gender, race, religion, or national origin; and
        8. Has a full-service barber and beauty salon;
        1. A commercially operated facility having all of the following characteristics:
          1. The facility is located on approximately five hundred (500) acres of land;
          2. The facility is located less than three (3) miles north of an area designated as The South Cumberland State Park consisting of approximately thirty thousand (30,000) acres that is open to the public;
          3. The facility is located within five (5) miles of Interstate 24 in a county having a population of not less than thirteen thousand seven hundred (13,700) nor more than thirteen thousand seven hundred fifty (13,750), according to the 2010 federal census or any subsequent federal census;
          4. The facility includes two (2) cabins, a tiny house, a stage, three (3) fishing ponds, a check-in facility, a bathhouse, fifty (50) RV hookups, multiple hiking trails, frisbee golf, and a wedding pavilion;
          5. The facility serves as a venue for weddings, meetings, and conferences; and
          6. The facility has two (2) event centers that can accommodate at least one hundred fifty (150) guests at each center;
        2. The premises of any facility licensed under this subdivision (27)(AAAAAA) means any or all of the property that constitutes the facility. The licensee shall designate the premises to be licensed by the commission by filing a drawing of the premises, which may be amended by the licensee filing a new drawing. The entire designated premises is covered under one (1) license issued under this subdivision (27)(AAAAAA);
        3. Notwithstanding any provision of chapter 5 of this title to the contrary, the premises of any facility licensed under this subdivision (27)(AAAAAA) means, for beer permitting purposes, any or all of the property that constitutes the facility. The beer permittee shall designate the premises to be permitted by the local beer board by filing a drawing of the premises, which may be amended by the beer permittee filing a new drawing. The entire designated premises is covered under one (1) beer permit issued under chapter 5 of this title;
        4. The requirements of § 57-5-105(b)(1) do not apply to any facility licensed under this subdivision (27)(AAAAAA); and
        5. Any facility licensed under this subdivision (27)(AAAAAA) may seek an additional license as a caterer under this chapter;
      116. A commercially operated facility having the following characteristics:
        1. Contains a restaurant in a free-standing building with retail space and consisting of approximately three thousand square feet (3,000 sq. ft.); and
        2. Is located at the intersection of state highways 46 and 100 in a county having a population of not less than twenty-four thousand six hundred seventy-six (24,676) nor more than twenty-four thousand seven hundred (24,700), according to the 2010 federal census or any subsequent federal census;
      117. A commercially operated facility having the following characteristics:
        1. Contains a full-service restaurant with seating for at least twenty-nine (29) patrons inside and fourteen (14) patrons outside and that does not use a freezer or a fryer; and
        2. Is located less than one thousand feet (1,000') from a United States Post Office and approximately one mile (1 mi.) from a state natural area featuring a small remnant forest having old growth forest characteristics in a county having a population of not less than twenty-four thousand six hundred seventy-six (24,676) nor more than twenty-four thousand seven hundred (24,700), according to the 2010 federal census or any subsequent federal census;
      118. A commercially operated facility having the following characteristics:
        1. Contains a full-service restaurant that features live music and that is adjacent to a custom motorcycle shop; and
        2. Is located less than three hundred feet (300') from a United States Post Office and approximately one mile (1 mi.) from a state natural area featuring a small remnant forest having old growth forest characteristics in a county having a population of not less than twenty-four thousand six hundred seventy-six (24,676) nor more than twenty-four thousand seven hundred (24,700), according to the 2010 federal census or any subsequent federal census;
      119. A commercially operated facility possessing each of the following characteristics:
        1. Contains a restaurant that has been in operation since at least 2012 with at least forty-two (42) seats inside and seventy-five (75) seats outside;
        2. Contains a banquet hall that is used for weddings, banquets, meetings, and other events and is at least three thousand square feet (3,000 sq. ft.); and
        3. Is located approximately seven hundred (700) yards from state highway 641 South and is adjacent to a winery in a county having a population of not less than thirty-two thousand three hundred one (32,301) nor more than thirty-two thousand four hundred (32,400), according to the 2010 federal census or any subsequent federal census;
      120. A commercially operated marina having the following characteristics:
        1. Has open and covered boat slips, a store, a restaurant, and a fuel dock;
        2. Has cabins and RV campsites available for rent; and
        3. Is located on Cordell Hull Lake approximately three thousand feet (3,000') from the confluence of Defeated Creek and the Cumberland River in a county having a population of not less than nineteen thousand one hundred fifty-one (19,151) nor more than nineteen thousand two hundred (19,200), according to the 2010 federal census or any subsequent federal census;
      121. A commercially operated restaurant having the following characteristics:
        1. Has a structure of not less than two thousand square feet (2,000 sq. ft.) that has seating at tables and at the bar for at least ninety-six (96) guests and serves at least one (1) meal a day seven (7) days a week, with the exception of holidays, vacations, and periods of redecorating; and
        2. Is located approximately two thousand five hundred feet (2,500') from two (2) islands in Old Hickory Lake in a county having a population of not less than one hundred thirteen thousand nine hundred (113,900) nor more than one hundred fourteen thousand (114,000), according to the 2010 federal census or any subsequent federal census;
      122. A commercially operated marina possessing each of the following characteristics:
        1. Is located on Norris Lake in a county having a population of not less than forty thousand seven hundred (40,700) nor more than forty thousand eight hundred (40,800), according to the 2010 federal census or any subsequent federal census;
        2. Has at least sixty (60) covered boat slips and at least twelve (12) uncovered boat slips;
        3. Has a ship store offering gasoline and other boating supplies and a restaurant with seating for at least eighty (80) patrons, including indoor and outdoor seating; and
        4. Is located approximately one and one-half (1½) miles from a county-owned, public-use airport with a runway four thousand feet (4,000') in length;
        1. A commercially operated facility that:
          1. Has a limestone quarry that sits approximately one thousand seven hundred feet (1,700') southeast of Interstate 65, two thousand seven hundred feet (2,700') south of Interstate 840, and four and six-tenths (4.6) miles north of the junction of US 431 and State Route 247;
          2. Is a venue for live music, weddings, meetings, and other events;
          3. Serves or sells food to patrons;
          4. Has an outdoor amphitheater with a capacity for at least seven thousand (7,000) guests;
          5. Has exclusive or non-exclusive rights to possess or use a commercial kitchen or service kitchen where food is staged and served; and
          6. Is located in a county having a population of not less than one hundred eighty-three thousand one hundred (183,100) and not more than one hundred eighty-three thousand two hundred (183,200), according to the 2010 federal census or any subsequent federal census;
        2. The premises of any facility licensed under this subdivision (27)(IIIIII) means any and all of the property that constitutes the facility, including all enclosed and outdoor areas of the property. The licensee shall designate the premises to be licensed by the commission by filing a drawing of the premises, which may be amended by the licensee filing a new drawing;
        3. Any facility as described in this subdivision (27)(IIIIII), may hold any of the licenses authorized under this subdivision (27)(IIIIII) and shall have the privilege of granting a franchise to one (1) or more entities authorizing such an entity to provide food or beverages, including alcoholic beverages and beer, on its premises; provided, that any separate entity must apply to the commission for a separate license, except for an entity already licensed under subdivision (6). For purposes of this subdivision (27)(IIIIII)(iii), the licensee is not required to have exclusive control of a commercial kitchen or any service kitchen, where food is staged and served, as a condition of the license;
        4. Any licensed entity that holds a license under this subdivision (27)(IIIIII) may store alcoholic beverages and beer at one (1) or more storage locations in the facility and in any commercial kitchen or service kitchen within the facility; provided, that each licensed entity shall store its inventory of alcoholic beverages and beer in a separately locked cage or other storage area;
        5. Notwithstanding § 57-4-101(p), any facility licensed under this subdivision (27)(IIIIII) may serve wine, high gravity beer and beer in its original container, and spirit-based beverages in original containers that do not exceed three hundred seventy-five milliliters (375 ml) and an alcohol content that does not exceed fifteen percent (15%) by volume, or in unlabeled cups or glassware, or in labeled cups or glassware identifying the licensee as the entity selling the alcoholic beverages or beer for on-premise consumption anywhere within the facility. Any franchisee holding a license under this subdivision (27)(IIIIII) shall comply with the requirements of § 57-4-101(p); provided, however, that a sticker identifying the licensee, which is reasonably designed to stay affixed to a container, cup, or glassware, must comply with § 57-4-101(p);
        6. The commission shall enforce chapter 4 of this title against each licensee under this subdivision (27)(IIIIII) and shall not cite, penalize, or take any other adverse action against a licensee for any violation committed by another licensee on the licensed premises. There is a rebuttable presumption of liability for a specific licensee for any underage sale or other violation based on the unlabeled or labeled container, or unlabeled or labeled cup or glassware, as required pursuant to subdivision (27)(IIIIII)(v), provided to the minor. In the absence of a container, glass, or cup identifying the licensee, the commission has the discretion to determine which licensee to cite for an underage sale or other such violation. If the commission is unable to determine which licensee committed the violation after conducting a reasonable investigation, the commission may issue a citation to one (1) or more licensees that share the premises where the violation occurred;
        7. Notwithstanding any provision of chapter 5 of this title to the contrary, the premises of any facility described under this subdivision (27)(IIIIII) means, for the purpose of obtaining a beer permit, any and all of the property that constitutes the facility, including all enclosed and outdoor areas of the property. The beer permittee shall designate the premises to be licensed by the local beer board by filing a drawing of the premises, which may be amended by the beer permittee filing a new drawing. The beer board shall enforce chapter 5 of this title against each licensee as a beer permittee and shall not cite, penalize, or take any other adverse action against a licensee for any violation committed by another licensee on the licensed premises. There is a rebuttable presumption of liability for a specific licensee for any underage sale or other violation based on the unlabeled or labeled container, or unlabeled or labeled cup or glassware, as required pursuant to subdivision (27)(IIIIII)(v), provided to the minor. In the absence of a container, glass, or cup identifying the licensee, the local beer board has the discretion to determine which licensee to cite for an underage sale or other such violation. If the beer board is unable to determine which licensee committed the violation after conducting a reasonable investigation, the beer board may issue a citation to one (1) or more licensees that share the premises where the violation occurred;
        8. Notwithstanding § 57-4-203(e)(1), any licensee licensed under this subdivision (27)(IIIIII) may sell and distribute wine in any unsealed container for consumption on the licensed premises;
        9. Any licensee licensed under this subdivision (27)(IIIIII) may seek an additional license as a caterer under chapter 4 of this title, and is not required to comply with the requirements of § 57-4-102(6)(A) or show exclusive control of a commercial kitchen or any service kitchen, where food is staged and served, as a condition of the license. Caterers licensed under this subdivision (27)(IIIIII)(ix) may store alcoholic beverages and beer in any shared commercial kitchen or service kitchen. The inventory of alcoholic beverages and beer must be stored in a separately locked cage or other storage area;
        10. Nothing in this subdivision (27)(IIIIII) may be construed to prevent a facility, as described under this subdivision (27)(IIIIII), from designating any area of its premises for purposes authorized under this subdivision (27)(IIIIII), or for the purposes of an entity licensed under this title; provided, that premises designated for use by another entity under this title are no longer part of the premises of any license issued under this subdivision (27)(IIIIII), except as provided in § 57-4-101(p); and
        11. The facility, landlord, tenant, or any licensee located in the facility shall provide periodic security for the entire licensed premises;
        1. A commercially operated recreational facility having all of the following characteristics:
          1. The facility is located approximately one mile (1 mi.) from the confluence of Clear Creek and the Obed River and is centrally located in one of this state's rock climbing meccas;
          2. The facility is located on approximately forty (40) acres;
          3. The facility provides at least forty (40) campsites and contains a restaurant and a brewery; and
          4. The facility is located in a county having a population of not less than twenty-one thousand nine hundred (21,900) nor more than twenty-two thousand (22,000), according to the 2010 federal census or any subsequent federal census; and
        2. The premises of any facility licensed under this subdivision (27)(JJJJJJ) means any or all of the property that constitutes the facility. A licensee shall designate the premises to be licensed by the commission by filing a drawing of the premises, which may be amended by the licensee filing a new drawing;
      123. A commercially operated facility possessing each of the following characteristics:
        1. Has an outdoor waterpark site covering at least fifty (50) acres that has a wave pool and other water attractions that contain at least one million seven hundred thousand {1,700,000) gallons of water; and
        2. Is located approximately five hundred feet (500') south of a municipal convention center, approximately two thousand two hundred feet (2,200') west of a state highway named in honor of a former governor of this state, and in a county having a population of not less than eighty-nine thousand eight hundred (89,800) nor more than eighty-nine thousand nine hundred (89,900), according to the 2010 federal census or any subsequent federal census;
      124. A commercially operated facility that:
        1. (a)  Serves as an event venue for weddings, a farmer's market, photography, birthdays, festivals, and similar events;
          1. (i)  (a)  Serves as an event venue for weddings, a farmer's market, photography, birthdays, festivals, and similar events;
          2. Contains a small and large dog park with obstacle courses and a dog wash station;
          3. Contains a tree grove;
          4. Operates a facility that is greater than seventeen thousand square feet (17,000 sq. ft.) containing a dual convention space that can accommodate up to five hundred (500) people, and a restaurant with indoor and outdoor seating for approximately two hundred (200) guests;
          5. Offers scenic mountain overlook views; and
          6. Is located in a municipality with a population of not less than nine thousand eight hundred forty (9,840) and not more than nine thousand eight hundred forty-nine (9,849);
        2. The premises of any facility licensed under this subdivision (27)(LLLLLL) means any or all of the property that constitutes the facility. The licensee shall designate the premises to be licensed by the commission by filing a drawing of the premises, which may be amended by the licensee filing a new drawing. The designated premises may only include property owned or leased by the facility and that is contiguous to the property of the facility that is defined in this subdivision (27)(LLLLLL). The entire designated premises is covered under one (1) license issued under this subdivision (27)(LLLLLL); and
        3. Notwithstanding any provision of chapter 5 of this title to the contrary, the premises of any facility licensed under this subdivision (27)(LLLLLL) means, for beer permitting purposes, any or all of the property that constitutes the facility. The beer permittee shall designate the premises to be permitted by the local beer board by filing a drawing of the premises, which may be amended by the beer permittee filing a new drawing. The entire designated premises is covered under one (1) beer permit issued under chapter 5 of this title;
      125. A commercially operated facility that:
        1. Is an event and wedding venue located on fifty-three (53) acres containing:
          1. A space under roof of over thirteen thousand square feet (13,000 sq. ft.) equipped with heat and air conditioning year-round;
          2. Six thousand five hundred square feet (6,500 sq. ft.) of paver patio;
          3. Sixteen thousand square feet (16,000 sq. ft.) of barefoot cozy turf;
          4. A covered patio of one thousand seven hundred eighty-seven square feet (1,787 sq. ft.) adjacent to the main hall; and
          5. A one-thousand-eight-hundred-square-foot bridal suite, and a groom's lounge with a wet bar, foosball table, and a large television;
        2. Contains an equestrian center that is seven thousand square feet (7,000 sq. ft.);
        3. Contains a prep kitchen with two (2) stoves, two (2) ovens, a warming box, high-capacity ice maker, sinks, work stations, and drive-up load area;
        4. Operates working equine facilities of six thousand five hundred square feet (6,500 sq. ft.), including an arena, and a workshop barn that is two thousand square feet (2,000 sq. ft.); and
        5. Is located in a county with a population of not less than one hundred thirteen thousand nine hundred (113,900) and not more than one hundred fourteen thousand (114,000), according to the 2010 or any subsequent federal census;

        includes the area encompassed by the boundaries of the historic district; provided, that the granting of a license for a business location within such historical district shall not preclude the granting of another license to another establishment located within the boundaries of the historic district. This subdivision (28) applies only to counties with a population of more than four hundred thousand (400,000), according to the 1980 census, but those counties having a metropolitan form of government shall be exempt from this subdivision (28). In such county, only for the purposes of the hours of sale provided in §57-4-203(d)(4), “premises” also includes any establishment located within four (4) blocks west of the western boundary of the historic district and on the same public street or right of way as the historic district; provided, that the requirement of closing the street or right-of-way to motor vehicular traffic on a regular basis shall not apply to the extension of the premises established by this sentence. Within the premises as defined in this subdivision (28)(A), and subject to the municipality's right of ownership and control and any conditions, rules, or regulations imposed by the city or its designee or by law, alcoholic beverages may also be served to customers seated at tables and chairs contiguous to the outside front wall of a licensee's building;

      126. includes only the area located between a convention center, its designated convention center hotel, and a museum that is attached to the convention center hotel; and the one (1) block of public roadway on Fifth Avenue between Demonbreun Street and Korean Veterans Boulevard; and

        1. “Premises,” when:
          1. Referring to an establishment licensed under this chapter;
          2. Such establishment is located within a central improvement district; and
          3. The central improvement district is located in a county having a metropolitan government that has a population in excess of five hundred thousand (500,000), according to the 2010 federal census or any subsequent federal census;
        2. This subdivision (28)(B) shall only be effective in any county upon the adoption of a resolution by a majority vote of the local legislative body approving the use of this definition of “premises”;
      127. “Premises,” when:
        1. Referring to one (1) or more establishments licensed under this chapter, or a manufacturer exercising the rights granted to it under § 57-3-202(i)(1); and
        2. Such establishments are located:
          1. Within a home rule municipality in a county with a population of not less than three hundred thirty-six thousand four hundred (336,400) and not more than three hundred thirty-six thousand five hundred (336,500), according to the 2010 federal census or any subsequent federal census; and
          2. Within or adjacent to an area that is a five hundred seventy-five foot (575') paver lined street with a right of way that is approximately forty feet (40') wide extending from Market Street on the western boundary to Rossville Avenue on the eastern boundary; that is bordered along its northern boundary by a historic railroad terminal station that has been listed on the National Register of Historic Places since 1974; and that is bordered along its northern boundary by property zoned for urban-industrial mixed use and along its southern boundary by property that is zoned for urban-commercial mixed use;

        includes the area described in subdivision (28)(C)(ii)(b ). The granting of a license for a business located within or adjacent to the boundaries of the area described in subdivision (28)(C)(ii)(b ) does not preclude the granting of another license to another establishment located within or adjacent to such area;

      128. The exhibits containing live aquatic animals for public viewing are housed in a building having at least one hundred thousand square feet (100,000 sq. ft.) of interior space;
      129. The exhibits containing live aquatic animals for public viewing contain a minimum total of five hundred thousand gallons (500,000 gals.) of water as the living environment of the animals; and
      130. The public aquarium is located in a county having a population in excess of two hundred fifty thousand (250,000), according to the 1990 federal census or any subsequent federal census;

        (A)  “Restaurant” means any public place kept, used, maintained, advertised and held out to the public as a place where meals are served and where meals are actually and regularly served, without sleeping accommodations, such place being provided with adequate and sanitary kitchen and dining room equipment and seating capacity of at least forty (40) people at tables, having employed therein a sufficient number and kind of employees to prepare, cook and serve suitable food for its guests. An establishment shall be eligible for licensure as a restaurant in accordance with this part, if the establishment is open at least three (3) days a week, with the exception of holidays, vacations, periods of redecorating and seasonal closings, and more than fifty percent (50%) of the gross revenue of the restaurant is generated from the serving of meals. As used in this subdivision (30), “seasonal closing” means the period from November 1 to March 1 or a period of time, if different from such dates, as filed by the restaurant with the alcoholic beverage commission;

      131. “Restaurant” also means any bowling center that was licensed as of January 1, 1983, to sell alcoholic beverages for consumption on the premises;
      132. In counties with a population of more than three hundred nineteen thousand six hundred twenty-five (319,625), according to the 1980 census, but excluding those counties having a metropolitan form of government:
        1. Within a national historic landmark district or urban park center, as defined by this section, or within an easement area granted to a municipality for commercial recreation and commercial recreation facilities from the Tennessee Valley authority in the Fort Loudoun Reservoir:
          1. Restaurant licensees shall not be required to meet any requirements of this section which make food service, maintenance of a kitchen, or a dining room a prerequisite to the issuance of a restaurant permit to serve liquor by the drink; and
          2. Notwithstanding any law to the contrary, restaurant licensees may enter into leases with municipal landowners in which gross sales, which may include or exclude liquor sales, are considered in the determination of a percentage rent or other rent calculation provision; and
        2. Within a sports authority facility, as defined in this section, restaurant licensees shall not be required to meet any of the requirements of subdivision (30)(A) which make food service, maintenance of a kitchen, or a dining room a prerequisite for the issuance of a permit to serve liquor by the drink;
      133. Notwithstanding the minimum seating capacity established in subdivision (30)(A), for the purpose of a permit to serve wine, “restaurant” means any lodge or resort with sleeping accommodations where meals are served that is located on land which is owned by the United States department of the interior, is operated by the national park service or its agents or contractors and is located in a county with a population of not less than forty-one thousand four hundred (41,400) nor more than forty-one thousand five hundred (41,500), according to the 1980 federal census or any subsequent federal census;
      134. “Restaurant” also means a facility located in any municipality having a population in excess of one hundred thousand (100,000), according to the 1990 federal census, or any subsequent federal census, in which coffees, teas, pastries, and other foodstuffs are offered for sale for consumption on the premises, which facility has a seating capacity of at least thirty (30) seats and which facility obtains at least fifty percent (50%) of its annual gross sales from the sale of coffees, teas and pastries. Any restaurant licensed under this subdivision (30)(E) shall be authorized to sell alcoholic beverages for consumption on the premises only when such beverages are mixed with coffees, teas and other beverages. A restaurant licensed under this subdivision (30)(E) need not meet the requirement of subdivision (30)(A);
      135. “Restaurant” also means a facility:
        1. Located within one-half (½) mile of the railroad tracks in the unincorporated area of any county having a population of not less than thirty thousand two hundred (30,200) nor more than thirty thousand four hundred seventy-five (30,475), according to the 1990 federal census or any subsequent federal census;
        2. Whose primary source of income is from serving meals to its patrons, both indoors and out-of-doors, and has a total seating capacity of at least seventy-five (75) people at tables;
        3. Located in a building having a total square footage of at least two thousand five hundred square feet (2,500 sq. ft.) which was constructed prior to 1925; and
        4. Which is located on a site used during the Civil War or within two (2) miles of two (2) or more Civil War sites, or is within one and one-half (1 ½) miles of a home that was built in 1884, and which is preserved as the area's best example of the Queen Anne and Eastlake architectural styles;
      136. “Restaurant” also means a facility:
        1. Located on Highway 243 in a county having a population of not less than sixty-nine thousand four hundred (69,400) nor more than sixty-nine thousand five hundred (69,500), according to the 2000 federal census or any subsequent federal census;
        2. That has seating for not more than one hundred forty (140) people;
        3. That has a music and entertainment orientation;
        4. Whose primary source of income is derived from serving meals to its patrons;
        5. That has a historic working original malt and soda fountain;
        6. That is located in a historical structure formerly used as a town hall as well as a practice venue for Grand Ole Opry hopefuls; and
        7. That does not discriminate against any patron on the basis of age, gender, race, religion or origin;
        1. Restaurant also means a facility that:
          1. Is owned, operated or leased by a for-profit organization organized under the laws of this state;
          2. Does not discriminate against any patron on the basis of gender, race, religion or national origin;
          3. Provides food service to the public or for private events and catering with seating capacity for at least two hundred fifty (250) persons at tables, whether or not the seating is inside or on a deck or patio;
          4. Is open at least five (5) days a week serving two (2) meals daily with the exception of holidays, vacations, seasonal conditions and periods of redecorating, with suitable kitchen, dining facilities and equipment;
          5. Is in the center of a full service marina and resort located on the Tennessee River at mile marker 477.5; which full service marina has at least six hundred (600) dry storage slips and wet slips up to eighty feet (80') that offers two (2) cabins completely furnished and an inn with twelve (12) rooms that overlooks the Tennessee River; and
          6. Is located in any county having a population of not less than three hundred seven thousand eight hundred (307,800) nor more than three hundred seven thousand nine hundred (307,900), according to the 2000 federal census or any subsequent federal census;
        2. A restaurant under this subdivision (30)(H) must comply with all the requirements of this chapter and shall be subject to the restrictions imposed upon licenses other than § 57-4-103;
      137. “Restaurant” also means a facility:
        1. Located on State Route 46, Old Hillsboro Road, in any county having a population of not less than one hundred twenty-six thousand six hundred (126,600) nor more than one hundred twenty-six thousand seven hundred (126,700), according to the 2000 federal census or any subsequent federal census;
        2. Which is located 1.66 miles from the Natchez Trace Parkway Exit off of Pinewood Road;
        3. Whose primary source of income is from serving meals to its patrons;
        4. Which first opened as a restaurant in 1968;
        5. Which does not operate as a grocery store; and
        6. Which does not discriminate against any patron on the basis of age, gender, race, religion, or national origin;
      138. “Restaurant” also means a facility that:
        1. Is located in a county with a metropolitan form of government having a population of not less than five hundred thousand (500,000), according to the 2010 federal census or any subsequent federal census;
        2. Is a twenty-four-hour-a-day diner;
        3. Is located in a central business improvement district as of 2017;
        4. Serves full meals and has a full-time kitchen staff, twenty-four (24) hours a day;
        5. Holds a valid license from the commission;
        6. Is located in a separate, unattached building;
        7. Does not permit live music or entertainment, nor share walls with any establishment offering live music or entertainment; and
        8. Has six (6) floors and at least seventeen thousand square feet (17,000 sq. ft.); and
      139. “Restaurant” also means a facility that:
        1. Is located in a county with a metropolitan form of government having a population of not less than five hundred thousand (500,000), according to the 2010 federal census or any subsequent federal census;
        2. Is situated to the east and to the west of the Cumberland River in Pennington Bend;
        3. Is located approximately two thousand feet (2,000') to the northwest of a resort and convention center;
        4. Is a venue for live music;
        5. Has an outdoor deck that is approximately three thousand square feet (3,000 sq. ft.); and
        6. Operates a restaurant that is approximately eight thousand square feet (8,000 sq. ft.) with a seating capacity of approximately two hundred fifty (250);
      140. “Restaurant” also means a facility that:
        1. Began operating on September 5, 2018;
        2. Has a seating capacity for patrons of approximately one hundred forty (140);
        3. Is located on Hixson Pike within one thousand five hundred feet (1,500') of Dallas Bay on the Tennessee River and within six thousand feet (6,000') of Chester Frost Park;
        4. Is approximately two thousand square feet (2,000 sq. ft.); and
        5. Is located in a county with a population of not less than three hundred thirty-six thousand four hundred (336,400) and not more than three hundred thirty-six thousand five hundred (336,500), according to the 2010 federal census or any subsequent federal census;
        6. The center does not discriminate against any patron on the basis of gender, race, religion or national origin;
      141. “Retirement center” also means a facility that contains each of the following characteristics:
        1. The center is located in a county having a population of not less than one hundred fifty-six thousand eight hundred (156,800) nor more than one hundred fifty-six thousand nine hundred (156,900), according to the 2010 federal census or any subsequent federal census;
        2. The center will consist of recreational areas, a fitness center, a dining room with seating for at least one hundred fifty (150) people and a lounge area, and at least one hundred (100) individual living unit apartments;
        3. The center will have a facility of at least one hundred five thousand square feet (105,000 sq. ft.) and is located on approximately eight (8) acres near the corner of Fort Henry Drive and Holston Hills Drive; and
        4. The center's lounge area will offer, to the center's residents and their guests only, food, nonalcoholic beverages, mixed alcoholic drinks, wine, and beer, as well as make available in the dining room and other areas within the center's property, for the center's residents and guests only, mixed alcoholic drinks, wine, and beer;
      142. Was organized pursuant to a municipal urban planning and development board;
      143. Contains within such special historic district an historic district listed on the national register of historic places;
      144. Is located on a trolley line; and
      145. Is located in any county having a population of eight hundred thousand (800,000) or more, according to the 2000 federal census or any subsequent federal census;

        (A)  “Special occasion license” means a license which the commission may issue to a bona fide charitable, nonprofit or political organization. Such license shall be issued for no longer than one (1) twenty-four-hour period, subject to the limitations of hours of sale which may be imposed by law or regulation, and such license may be issued in advance of its effective date;

      146. If a bona fide charitable or nonprofit organization owns and maintains a permanently staffed facility which:
        1. Is used for the periodic showing or exhibition of animals;
        2. Has a seating capacity of not less than twenty-five thousand (25,000) persons; and
        3. Has a separate permanently constructed clubhouse or meeting room located on the grounds,

        then a special occasion license may be issued for use at the clubhouse or meeting room for the duration of the particular show or exhibit for which application is made, and such organization shall not be subject to the numeric limitation contained in the last sentence of this subdivision (33). This license shall only be available upon the payment of the fee as required by law for each separate day of the show;

      147. Such license shall not be issued unless and until there shall have been paid to the commission for each such license a license fee of one hundred dollars ($100), and there shall have been submitted an application which designates the premises upon which alcoholic beverages shall be served. No such charitable, nonprofit or political organization shall be eligible to receive more than twelve (12) special occasion licenses in any calendar year;
      148. A special occasion license under this section may also be issued to a nonprofit historical society for the purpose of serving complimentary samples of homemade wine manufactured in the Swiss tradition by a society member or members, the complimentary samples not to exceed one ounce (1 oz.) per wine type per person to be served at an annual festival conducted by a society celebrating the Swiss heritage at a farm museum in any county having a population of not less than fourteen thousand three hundred (14,300) nor more than fourteen thousand four hundred (14,400), according to the 2000 federal census or any subsequent federal census;
      149. Any entity holding a special occasion license issued under this subdivision (33) or members of the licensee may transport wine and other alcoholic beverages to the location for which the special occasion license is issued;
      150. “Special occasion license” also means a license, issued by the commission, to a bona-fide charitable organization, recognized as exempt from taxation by the internal revenue service pursuant to § 501(c)(3) of the Internal Revenue Code (26 U.S.C. § 501(c)(3)), which organization has been in continuous operation as a tax-exempt entity for at least twenty (20) years, and which organization has an annual budget of at least one million dollars ($1,000,000). A special occasion license issued pursuant to this subdivision (33)(F) shall be authorized to sell wine in closed containers for consumption on or off the premises notwithstanding the restrictions of § 57-4-203. Any licensee holding a license issued pursuant to § 57-3-202, § 57-3-203, § 57-3-204, § 57-3-207, § 57-3-605 or § 57-4-101 may donate wine to an organization holding a special occasion license issued pursuant to this subdivision (33)(F) for an event conducted by the special occasion licensee. Any resident of Tennessee may donate wine, which brand of wine has been registered pursuant to § 57-3-301, to an organization holding a special occasion license issued pursuant to this subdivision (33)(F) for sale or consumption at an event conducted by the special occasion licensee;
      151. A special occasion license under this section may also be issued to a bona fide charitable organization that benefits charities which support women and children in Middle Tennessee and which:
        1. Holds the event in a county having a population of not less than one hundred twenty-six thousand six hundred (126,600) nor more than one hundred twenty-six thousand seven hundred (126,700), according to the 2000 federal census or any subsequent federal census, on property used as a veterinary clinic located on a six and sixty-five one hundredths (6.65) acre lot that shares a common boundary between a municipality and the unincorporated area of such county;
        2. Jurisdictions within the boundaries of such county have by referendum adopted both the sale of alcoholic beverages at retail package stores and for consumption on the premises;
        3. Is a one-day annual event restricted to persons twenty-one (21) years of age or older;
        4. Holds a grape stomp contest with teams made up of four (4) stompers and one (1) swabbie, who collects the juice created by the stompers in a jar, with the team producing the most juice winning the contest;
        5. Includes numerous food vendors;
        6. Has wine and spirits tastings; and
        7. Where alcoholic beverages are served but not sold;
      152. A special occasion license under this section may also be issued to a nonprofit community association for the purpose of serving samples of wine to persons holding a presold ticket for an annual fundraiser, the samples not to exceed two ounces (2 oz.) per wine per person to be served at the annual fundraiser conducted by the community association in any county having a population of not less than one hundred twenty-six thousand six hundred (126,600) nor more than one hundred twenty-six thousand seven hundred (126,700), according to the 2000 federal census or any subsequent federal census. The fundraiser shall be an insured event with at least ten (10) wineries or restaurants participating in the event and food shall be available to attendees;

        (A)  “Sports authority facility” means a facility possessing the following characteristics:

        1. The facility is owned or operated by a sports authority established under title 7, chapter 67, a public building authority or a governmental entity;
        2. The facility is designed and used for presentation of professional sporting events and other activities, such as amateur sporting events, recreational activities and entertainment events and activities, and includes retail sales areas and retail food dispensing outlets, including, but not limited to, restaurant areas to accommodate liquor by the drink as well as food patronage;
        3. A major or minor league professional baseball (American, National or Minor League), football (National Football League), basketball (National Basketball Association) or hockey (National Hockey League) franchise has entered into a long-term agreement to play its home games in the facility; and
        4. The facility is located in a municipality or county having a population in excess of five hundred thousand (500,000), according to the 1990 federal census or any subsequent federal census;
      153. “Sports authority facility” also means a facility possessing the following characteristics:
        1. The facility includes a stadium that was constructed in 1997 and that has a seating capacity of twenty thousand (20,000) or more;
        2. The facility is designed and used for sporting and other municipal events;
        3. The facility is located in a home rule municipality located in a county with a population of not less than three hundred thirty-six thousand four hundred (336,400) and not more than three hundred thirty-six thousand five hundred (336,500), according to the 2010 federal census or any subsequent federal census; and
        4. The facility is located not more than one-half (1/2) mile from the Tennessee River;
      154. “Sports authority facility” also means any facility that is designed and used for school-sanctioned public sporting events on a public university campus located in any county with a metropolitan form of government having a population of not less than five hundred thousand (500,000), according to the 2010 federal census or any subsequent federal census;
      155. “Sports authority facility” also means any facility that is designed and used for school-sanctioned public sporting events on a four-year public university campus located in any county having a population of not less than two hundred sixty-two thousand six hundred (262,600) nor more than two hundred sixty-two thousand seven hundred (262,700), according to the 2010 federal census or any subsequent federal census;
      156. “Sports authority facility” also means any facility on the campus of a public institution of higher education that is designed and used for sporting events sanctioned by the institution;
        1. “Sports authority facility” also means a facility that:
          1. Is a professional motorsports speedway complex with a speedway approximately one-half (½) of a mile in length and a seating capacity of approximately one hundred sixty thousand (160,000);
          2. Includes a dragstrip complex adjacent to the speedway with a dragstrip approximately one-quarter (¼) of a mile in length and that contains stadium seating and at least twenty (20) suites; and
          3. Is located in a city with a population of not less than twenty-six thousand seven hundred (26,700) and not more than twenty-six thousand seven hundred nine (26,709), according to the 2010 federal census and any subsequent federal census; and
        2. The premises of any facility licensed under this subdivision (34)(F) includes all of the property constituting the facility. A licensee shall designate the premises to be licensed by the commission by filing a drawing of the premises, which may be amended by the licensee filing a new drawing;
      157. “Sports authority facility” also means any facility located in any county with a metropolitan form of government that has a population of not less than five hundred thousand (500,000), according to the 2010 federal census or any subsequent federal census, and that is equipped with two (2) or more ice rinks designed and used for various hockey and figure skating programs for children and adults that are supervised by a major or minor league professional hockey franchise;

        “Suite” means any room or group of rooms, leased by the operator of a sports authority facility or a convention center, physically located within such facility or center, where access to such room or rooms is restricted to the lessee or such lessee's guests;

        “Terminal building of a commercial air carrier airport” means a building, including any concourses thereof, used by commercial airlines and their customers for sale of airline tickets, enplaning and deplaning of airline passengers, loading and unloading of baggage and cargo, and for providing other related services for the convenience of airline passengers and others, located in any airport which is served by one (1) or more commercial airlines, and:

        “Tennessee River resort district” means a club, hotel, motel, restaurant or limited service restaurant located within a jurisdiction that has elected Tennessee River resort district status pursuant to §67-6-103(a)(3)(F); provided, that for the purposes of this chapter, such district shall only extend inland for three (3) miles from the nearest bank of the Tennessee River. No entity licensed to sell alcoholic beverages within the boundaries of any such resort district shall discriminate against any patron on the basis of age, gender, race, religion, or national origin;

      158. Is operated by a board of commissioners whose membership is appointed by the legislative bodies of five (5) or more local governments or whose membership is appointed pursuant to § 42-4-105; or
      159. Is located in a municipality where this chapter has become effective in that municipality;

        (A)  “Theater” means any establishment in which motion pictures are exhibited to the public regularly for a charge. Such theater shall have an area that is enclosed by glass and which is accessed through a set of double doors by patrons who must be twenty-one (21) years of age or older to enter. Such theater shall be part of a retail and entertainment complex located one (1) block from a historical district that has been designated as a national historic landmark that centers around a public street or right-of-way. Such theater shall be located in a county having a population of eight hundred thousand (800,000) or more, according to the 1990 federal census or any subsequent federal census;

      160. “Theater” also means any establishment in which motion pictures are exhibited to the public regularly for a charge and which possesses the following characteristics:
        1. Is a twelve (12) auditorium theater that is one hundred percent (100%) digital;
        2. Is certified by the United States Green Building Council as the nation's first stand-alone theater boasting energy and environmental sensitive design;
        3. Has one (1) auditorium restricted to patrons twenty-one (21) years of age or older; and
        4. Is located downtown near a river in a county having a population of not less than three hundred seven thousand eight hundred (307,800) nor more than three hundred seven thousand nine hundred (307,900), according to the 2000 federal census or any subsequent federal census;
      161. “Theater” also means an establishment in which motion pictures are exhibited to the public regularly for a charge. The theater shall have a local beer permit for on-premises consumption. The theater shall regularly serve prepared food to patrons and each auditorium in which alcoholic beverages may be consumed shall allow dining at each seat in the auditorium. Prior to making a sale of any alcoholic beverage, a valid, government-issued document, such as a driver license or other form of identification deemed acceptable to the license holder that includes a photograph and date of birth of the adult consumer attempting to make the purchase, shall be produced to the licensee. The theater shall also periodically visually monitor all auditoriums in which alcoholic beverages are permitted and each beverage containing an alcoholic beverage shall be distinct from any other container used to serve nonalcoholic beverages;

        (A)  “Urban park center” means a facility or designated area possessing the following characteristics:

        1. The center is owned, operated, or leased by a municipal or county government, or any agency or commission thereof;
        2. The center is designed to contain outdoor recreational facilities, public museum buildings, exhibition buildings, retail sales areas, retail food dispensing outlets including, but not limited to, sale of package alcoholic and malt beverages, and restaurant areas to accommodate liquor-by-the-drink as well as food patronage; and
        3. The center is located in a municipality or county having a population in excess of six hundred thousand (600,000), according to the 1970 federal census or any subsequent census;
        1. “Urban park center” also means an outdoor fixed structure amphitheater utilized as a performance venue, containing fixed seating for at least five thousand one hundred (5,100) persons. Such facility or designated area shall be secured by adequate perimeter fencing.
        2. This subdivision (39)(B) applies in any county with a metropolitan form of government with a population of not less than five hundred thousand (500,000), according to the 1990 federal census or any subsequent federal census;
      162. “Urban park center” also means a facility or designated area that possesses the following characteristics:
        1. Consists of at least two (2) theater spaces in which live theater, concerts, and films are presented;
        2. Contains at least ten thousand square feet (10,000 sq. ft.);
        3. Contains permanent fixed seating for at least three hundred forty-nine (349) persons;
        4. Contains one (1) performance space constructed prior to 1930 that contains a stage with a fly tower for stage rigging with a height of at least thirty feet (30');
        5. Is operated by a not-for-profit corporation that qualifies as tax exempt under the Internal Revenue Code, § 501(c)(3) (26 U.S.C. § 501(c)(3)), and such facility or designated area is not a religious organization or a secondary or elementary school;
        6. A major street is located not more than one hundred feet (100') from the nearest exterior wall of such facility or designated area; and
        7. Is located within the jurisdictional limits of a county with a metropolitan form of government having a population of not less than five hundred thousand (500,000), according to the 1990 federal census or any subsequent federal census;
      163. “Urban park center” also includes a facility or designated area possessing each of the following characteristics:
        1. Is owned, operated or leased by a municipal or county government, or any agency or commission thereof;
        2. Has an outdoor fixed structure amphitheater utilized as a performance venue;
        3. Provides or leases facilities for concerts, plays and programs of cultural, civic and educational interest; and
        4. Is located in any municipality that has authorized the sale of alcoholic beverages for consumption on the premises, in a referendum in the manner prescribed by § 57-3-106, and the municipality has a population of not less than twenty-three thousand nine hundred twenty (23,920), nor more than twenty-three thousand nine hundred thirty (23,930), according to the 2000 federal census or any subsequent federal census;
      164. “Urban park center” also means a facility or designated area that possesses each of the following characteristics:
        1. Is owned and maintained by a bona fide charitable or nonprofit organization;
        2. Is used for the periodic showing or exhibition of animals;
        3. Has a seating capacity of not less than twenty-five thousand (25,000) persons;
        4. Includes an arena and a permanently constructed clubhouse or meeting room located on the grounds; and
        5. Is located in any county having a population of not less than forty-five thousand (45,000) nor more than forty-five thousand one hundred (45,100), according to the 2010 federal census or any subsequent federal census;
        1. “Urban park center” also means a facility or designated area possessing each of the following characteristics:
          1. Is located on a tract or tracts of land having at least five (5) contiguous acres;
          2. Is located directly adjacent to property owned or leased by an airport authority created under state law;
          3. Has an enclosed facility or designated area of at least twenty thousand square feet (20,000 sq. ft.) and one (1) room with more than fourteen thousand square feet (14,000 sq. ft.);
          4. Has an exterior garden or gardens with sculpture;
          5. Is leased or owned by a not-for-profit corporation that qualifies under § 501(c)(3) of the Internal Revenue Code; and
          6. Is located within a county having a metropolitan form of government with a population of not less than six hundred thousand (600,000), according to the 2010 federal census or any subsequent federal census;
        2. An urban park center licensed under this subdivision (39)(F) shall have the privilege of granting a franchise for the provision of food or beverage, including alcoholic beverages, on its premises, and the holder of such franchise shall also be considered an urban park center under this subdivision (39)(F). The premises of an urban park center under this subdivision (39)(F) shall include all enclosed and outdoor areas of the property described in this subdivision (39)(F);
      165. “Urban park center” also includes a facility or designated area possessing each of the following characteristics:
        1. Is located in a building constructed in 1883 that was originally used as a flour mill and eventually became a cannery;
        2. Is an entertainment complex open to the public with three (3) facilities used for live music performances;
        3. Serves or sells food to patrons;
        4. Is approximately fifty-two thousand square feet (52,000 sq. ft.); and
        5. Is located within a county having a metropolitan form of government and a population in excess of five hundred thousand (500,000), according to the 2010 federal census or any subsequent federal census;
      166. “Urban park center” also includes a facility or designated area possessing each of the following characteristics:
        1. Is located approximately two (2) blocks from Interstate 40;
        2. Is located in a building constructed in the 1920s as an automobile factory;
        3. Is located in a building remodeled in 2011 as a live music venue open to the public;
        4. Serves or sells food to patrons; and
        5. Is located within a county having a metropolitan form of government and a population in excess of five hundred thousand (500,000), according to the 2010 federal census or any subsequent federal census;
      167. “Urban park center” also includes a facility or designated area possessing each of the following characteristics:
        1. Is located in the historic Elliston Place neighborhood;
        2. Is located approximately three (3) blocks from a private university and approximately one (1) block from a nonprofit hospital;
        3. Serves or sells food to patrons;
        4. Was opened to the public in 1971 as a live music venue;
        5. Has a stage that is four feet (4') high and has an indoor balcony; and
        6. Is located within a county having a metropolitan form of government and a population in excess of five hundred thousand (500,000), according to the 2010 federal census or any subsequent federal census;
      168. “Urban park center” also includes a facility or designated area possessing each of the following characteristics:
        1. Is located on 8th Avenue approximately one (1) block from Interstate 65;
        2. Is a live music venue that opened to the public in 2001;
        3. Is located beneath an independent and nationally acclaimed record store;
        4. Serves or sells food to patrons;
        5. Is approximately one thousand eight hundred square feet (1,800 sq. ft.); and
        6. Is located within a county having a metropolitan form of government and a population in excess of five hundred thousand (500,000), according to the 2010 federal census or any subsequent federal census;
      169. “Urban park center” also includes a facility or designated area possessing each of the following characteristics:
        1. Is located on Forrest Avenue across from a branch of a public library;
        2. Is a live music venue that promotes local artists that opened to the public in 2003;
        3. Serves or sells food to patrons;
        4. Is approximately two thousand seven hundred square feet (2,700 sq. ft.) and has an enclosed exterior patio; and
        5. Is located within a county having a metropolitan form of government and a population in excess of five hundred thousand (500,000), according to the 2010 federal census or any subsequent federal census;
      170. “Urban park center” also includes a facility or designated area possessing each of the following characteristics:
        1. Is located on First Avenue South;
        2. Is owned, operated, or leased by a governmental entity;
        3. Is a facility or designated area designed and used for the presentation of live outdoor music and other events and includes retail sales areas and retail food dispensing outlets, including, but not limited to, restaurant areas to accommodate sales of alcoholic beverages and food; and
        4. Is located in a county having a metropolitan form of government and a population in excess of five hundred thousand (500,000), according to the 2010 federal census or any subsequent federal census;
        1. “Urban park center” also includes a facility possessing each of the following characteristics:
          1. Is located on a tract or tracts of land having at least fifty (50) contiguous acres;
          2. A state highway is not more than seven hundred fifty feet (750') from the nearest property line;
          3. A commercial railroad track is not more than seven hundred fifty feet (750') from the nearest property line;
          4. Is adjacent to a municipal park having over one thousand nine hundred (1,900) acres;
          5. Has an art museum that was originally constructed prior to 1935 as a private residence;
          6. Has exterior gardens with a stream or streams, pools, fountains, and a stone grotto;
          7. Has a woodland sculpture trail that is over one (1) mile in length;
          8. Is leased or owned by a not-for-profit corporation that qualifies as tax exempt under the Internal Revenue Code § 501(c)(3), (26 U.S.C. § 501(c)(3)); and
          9. Is located within a county having a metropolitan form of government and a population of not less than six hundred thousand (600,000), according to the 2010 federal census or any subsequent federal census;
        2. An urban park center licensed under this subdivision (39)(M) shall have the privilege of granting a franchise pursuant to a written contract for a period of not less than one (1) year for the provision of food or beverage, including alcoholic beverages, on the premises of the urban park center, and the holder of such franchise shall be disclosed to the commission consistent with the disclosures made by the licensee and shall also be considered an urban park center under this subdivision (39)(M). The premises of an urban park center licensed under this subdivision (39)(M) shall include all enclosed and outdoor areas of the property described in this subdivision (39)(M);
        1. “Urban park center” also includes a commercially operated facility having all of the following characteristics:
          1. The facility is located on approximately one and seven-tenths (1.7) acres of land and has approximately thirty-eight thousand one hundred thirty-five square feet (38,135 sq. ft.) of interior space;
          2. The facility is located no more than ten thousand one hundred feet (10,100') from a federal interstate highway and less than three thousand two hundred feet (3,200') west of a commercial railroad track. The structure must be not less than two hundred seventy feet (270') and not more than three hundred feet (300') above sea level. The structure must have been originally constructed in 2017;
          3. The facility is located on a property that is adjacent to the intersection of Madison Avenue and Cooper Street;
          4. The property that the facility is located on must have previously housed a structure used as a hotel business that was demolished in 2015;
          5. The facility must be approximately one thousand six hundred eighty feet (1,680') to the south of a public park located on approximately three hundred forty-two (342) acres and that has a zoo that is accredited by the Association of Zoos and Aquariums that is open to the public;
          6. The facility consists of at least five (5) studio spaces in which live dance is performed, rehearsed, and instructed;
          7. The facility is operated by a not-for-profit corporation that qualifies as tax exempt under § 501(c)(3) of the Internal Revenue Code (26 U.S.C. § 501(c)(3)), and such facility or designated area is not a religious organization or a secondary or elementary school; and
          8. The facility is located in a county with a charter form of government having a population of not less than nine hundred thousand (900,000), according to the 2010 federal census or any subsequent federal census;
        2. The premises of any facility licensed under this subdivision (39)(N) shall mean any or all of the property that constitutes the facility, including all enclosed and outdoor areas of the property. The licensee shall designate the premises to be licensed by the commission by filing a drawing of the premises, which may be amended by the licensee filing a new drawing. The entire designated premises shall be covered under one (1) license issued under this subdivision (39)(N);
        3. Notwithstanding chapter 5 of this title to the contrary, the premises of any facility licensed under this subdivision (39)(N) shall mean, for beer permitting purposes, any or all of the property that constitutes the facility, including all enclosed and outdoor areas of the property. The beer permittee shall designate the premises to be permitted by the local beer board by filing a drawing of the premises, which may be amended by the beer permittee filing a new drawing. The entire designated premises shall be covered under one (1) beer permit issued under chapter 5 of this title; and
        4. An urban park center licensed under this subdivision (39)(N) shall have the privilege of granting a franchise for the provision of food or beverage, including alcoholic beverages, on its premises, and the holder of such franchise shall also be considered an urban park center under this subdivision (39)(N);
      171. “Urban park center” also means:
        1. A commercially operated facility having all of the following characteristics:
          1. The facility is located on land that is between one and one-half (1½) acres and that is adjacent to land owned by the electric power board of a county with a metropolitan form of government;
          2. The facility has at least two (2) permanent structures constructed before 1978 and at least twenty-five thousand square feet (25,000 sq. ft.) of climate controlled space;
          3. The facility formerly housed a custom car design business that had been serving the automotive community since 1968;
          4. The facility is located in a county with a metropolitan form of government having a population of not less than six hundred thousand (600,000), according to the 2010 federal census or any subsequent federal census;
          5. The facility is approximately five thousand ninety feet (5,090') to the northeast of a federal interstate highway;
          6. The facility is approximately five thousand nine hundred sixty feet (5,960') to the northwest of a navigable waterway; and
          7. The facility is approximately three hundred fifty feet (350') to the southwest from the main building of a high school that was originally constructed before 1933;
        2. The premises of any facility described under this subdivision (39)(O) means any or all of the property that constitutes the facility, including all buildings and outdoor areas between and around those buildings. The licensee shall designate the premises to be licensed by the commission by filing a drawing of the premises, which may be amended by the licensee filing a new drawing. An urban park center, as described in subdivision (39)(O)(i), may grant a franchise to one (1) or more entities authorizing such an entity to provide food or beverages, including alcoholic beverages, on its premises. A franchisee is deemed to be an urban park center under this subdivision (39)(O) and shall apply for and hold a license under this subdivision (39)(O). The commission shall enforce chapter 4 of this title against each franchisee as a licensee under this subdivision (39)(O) and shall not cite, penalize, or take any other adverse action against a franchisee for any violation committed by another franchisee on the licensed premises. There is a rebuttable presumption of liability for a specific franchisee for any underage sale based on the specific type of glass or the brand on the cup provided to the minor. In the absence of a glass or cup identifying the franchisee, the commission may determine which franchisee to cite for an underage sale. If the commission is unable to determine which franchisee committed the violation after conducting a reasonable investigation, the commission may issue a citation to one (1) or more franchisees that share the common space where the violation occurred;
        3. Notwithstanding any provision of chapter 5 of this title to the contrary, the premises of any facility described under this subdivision (39)(O) means, for the purpose of obtaining a beer permit, any or all of the property that constitutes the facility, including all buildings and outdoor areas between and around those buildings. The beer permittee shall designate the premises to be licensed by the local beer board by filing a drawing of the premises, which may be amended by the beer permittee filing a new drawing. An urban park center, as described in subdivision (39)(O)(i), may grant a franchise to one (1) or more entities authorizing such an entity to provide food or beverages, including beer, on its premises. A franchisee is deemed to be an urban park center under this subdivision (39)(O) and shall apply for and hold a beer permit. The beer board shall enforce chapter 5 of this title against each franchisee as a beer permittee and shall not cite, penalize, or take any other adverse action against a franchisee for any violation committed by another franchisee on the licensed premises. There is a rebuttable presumption of liability for a specific franchisee for any underage sale based on the specific type of glass or the brand on the cup provided to the minor. In the absence of a glass or cup identifying the franchisee, the beer board may determine which franchisee to cite for an underage sale. If the beer board is unable to determine which franchisee committed the violation after conducting a reasonable investigation, the beer board may issue a citation to one (1) or more franchisees that share the common space where the violation occurred; and
        4. The licensee described in subdivision (39)(O)(i) and any franchisee licensed under this subdivision (39)(O) may store beer and alcoholic beverages in a central storage location in the facility. Each licensee shall store its inventory of beer and alcoholic beverages in a separately locked cage or other storage area;
        1. “Urban park center” also means a facility or designated area having all of the following characteristics:
          1. The easternmost corner of the structure that houses the facility is approximately one thousand four hundred feet (1,400') southwest of a public park that is adjacent to a navigable waterway;
          2. The easternmost corner of the structure that houses the facility is approximately one thousand one hundred feet (1,100') southeast of a public park that is adjacent to a public library constructed in 2001;
          3. The easternmost corner of the structure that houses the facility is approximately five hundred feet (500') northwest of a public park that contains a walkway recognizing professionals in the music industry;
          4. The easternmost corner of the structure that houses the facility is approximately one thousand five hundred feet (1,500') southwest of a railway station providing commuter rail service that employs standard gauge locomotives and coaches;
          5. The property that houses the facility is across a public street from a live performance venue that was originally constructed in 1892 as a religious facility;
          6. The property that houses the facility is adjacent to a facility originally constructed in 1925 that houses the Grand Lodge of Free and Accepted Masons of Tennessee;
          7. The facility is located in a mixed used development located at the intersection of a federal highway and a municipal street;
          8. The facility is owned, operated, or leased by a bona fide charitable or nonprofit organization;
          9. The facility occupies no less than fifty thousand square feet (50,000 sq. ft.) of commercial space used as a museum that offers informational and educational programming to the community, features historical exhibits, live and pre-recorded music, and may be utilized for public and private occasions, weddings, community meetings, corporate functions, and other events;
          10. Does not discriminate against any patron on the basis of age, gender, race, religion, or national origin; and
          11. The facility is located in a county with a metropolitan form of government having a population of not less than six hundred thousand (600,000), according to the 2010 federal census or any subsequent federal census;
        2. The premises of any facility licensed under this subdivision (39)(P) means any or all of the property that constitutes the facility. The licensee shall designate the premises to be licensed by the commission by filing a drawing of the premises, which may be amended by the licensee filing a new drawing;
        3. Notwithstanding any provision of chapter 5 of this title to the contrary, the premises of any facility licensed under this subdivision (39)(P) means for beer permitting purposes any or all of the property that constitutes the facility. The beer permittee shall designate the premises to be permitted by the local beer board by filing a drawing of the premises, which may be amended by the beer permittee filing a new drawing; and
        4. An urban park center licensed under this subdivision (39)(P) shall have the privilege of granting a franchise for the provision of food or beverage, including alcoholic beverages, on its premises, and the holder of the franchise is deemed to be an urban park center under this subdivision (39)(P);
        1. “Urban park center” also includes a facility possessing each of the following characteristics:
          1. Is owned, operated, or leased by a municipal or county government, or any agency or commission thereof;
          2. Has an outdoor fixed-structure stage utilized as a performance venue;
          3. Provides or leases facilities for concerts, plays, and programs of cultural, civic, and educational interest; and
          4. Is located in a municipality that has authorized the sale of alcoholic beverages for consumption on the premises, in a referendum in the manner prescribed by § 57-3-106, and that has a population of not less than four thousand fifty (4,050) and not more than four thousand fifty-nine (4,059), according to the 2010 federal census and any subsequent federal census; and
        2. This subdivision (39)(Q) only applies in a city with a population of not less than four thousand fifty (4,050) and not more than four thousand fifty-nine (4,059), according to the 2010 federal census and any subsequent federal census upon the adoption of an ordinance by a two-thirds (2/3) vote of its governing body;
        1. “Urban park center” also means a facility possessing each of the following characteristics:
          1. Provides or leases facilities for flea markets, fairs, exposition events, consumer shows, indoor and outdoor sports, meetings, and banquets;
          2. Has a paved motorsports racetrack that is at least one-half (½) mile in length with banking in the turns of eighteen (18) degrees;
          3. Is located on a tract of land having at least one hundred twenty-eight (128) acres;
          4. Has a one (1) acre dog park and other green space that is used for parking, public recreation, and events; and
          5. Is owned by, and located in, a county having a metropolitan form of government and a population of not less than six hundred thousand (600,000), according to the 2010 federal census or any subsequent federal census;
        2. The premises of any facility licensed under this subdivision (39)(R) means any or all of the property that constitutes the facility, including all enclosed and outdoor areas of the property. The licensee shall designate the premises to be licensed by the commission by filing a drawing of the premises, which may be amended by the licensee filing a new drawing. The designated premises may be covered under multiple licenses issued under this subdivision (39)(R) for individual facilities within the urban park center;
        3. An urban park center licensed under this subdivision (39)(R) may grant a franchise for the provision of food or beverage, including alcoholic beverages, on its premises, and the holder of such franchise is also considered an urban park center under this subdivision (39)(R); and
        4. An urban park center licensed under this subdivision (39)(R) shall provide a report to the commission, on or before October 1 each year, that details the gross revenue the urban park center earned from the sale of alcoholic beverages and the amount retained by, or paid to, any franchisee of the urban park center for the sale of alcoholic beverages;
      172. “Zoological institution” means a facility that contains a zoological garden or collection of living animals and provides for their care and housing for public exhibition and further possesses the following characteristics:
        1. The zoo is operated on property leased by a county having a metropolitan form of government and has been opened to the public on that property at least since 1997;
        2. The zoo has been accredited by and maintains the accreditation of the Association of Zoos and Aquariums (AZA); and
        3. The zoo is located in a county having a metropolitan form of government and a population in excess of five hundred thousand (500,000), according to the 2000 federal census or any subsequent federal census;
      173. “Zoological institution” means a facility that contains a zoological garden or collection of living animals and provides for their care and housing for public exhibition and further possesses the following characteristics:
        1. The zoo is operated on property owned by a city and has been opened to the public on that property at least since 1937;
        2. The zoo has been accredited by and maintains the accreditation of the Association of Zoos and Aquariums (AZA); and
        3. The zoo is located in a county having a population of not less than three hundred seven thousand eight hundred (307,800) nor more than three hundred seven thousand nine hundred (307,900), according to the 2000 federal census or any subsequent federal census; and
      174. “Zoological institution” means a facility that contains a zoological garden or collection of living animals and provides for their care and housing for public exhibition and further possesses the following characteristics:
        1. The zoo is operated on property owned by a city and has been opened to the public on that property at least since 1948;
        2. The zoo has been accredited by and maintains the accreditation of the Association of Zoos and Aquariums (AZA); and
        3. The zoo is located in a county having a population of not less than three hundred eighty two thousand (382,000) nor more than three hundred eighty two thousand one hundred (382,100), according to the 2000 federal census or any subsequent federal census.

Such club may not compensate or pay any officer, director, agent or employee any profits from the sale of alcoholic or malt beverages based upon the volume of such beverages sold;

It is the express intention of the general assembly that the law concerning the purchase or possession of alcoholic beverages by persons under twenty-one (21) years of age be strictly enforced by such club;

“Club” also means a for-profit recreational club, organized and existing under the laws of this state, which is located in any county having a population of not less than one hundred thirty thousand (130,000) nor more than one hundred thirty-one thousand (131,000), according to the 2000 federal census or any subsequent federal census, and further possesses the following characteristics:

The club shall be adjacent to a residential development consisting of at least one hundred (100) residential units, and the club property and such residential development shall consist of at least two hundred (200) acres;

The residential development shall be adjacent to a lake with an area greater than twenty (20) acres;

The club shall be organized and operated to provide to its members, their guests, and others an eighteen-hole golf course and amenities provided by other similar clubs;

The club shall serve at least one (1) meal daily, five (5) days a week;

The club shall have a clubhouse with not less than three thousand square feet (3,000 sq. ft.) with suitable kitchen, dining facilities and equipment; and

The club shall not discriminate against any person on the basis of gender, race, religion or national origin;

(i)  “Club” also means a for-profit recreational club organized and existing under the laws of this state that has been in existence and operating for at least two (2) years prior to March 31, 2003, and that is located in any county not having a metropolitan form of government and having a population of not less than five hundred thousand (500,000), according to the 2000 federal census or any subsequent federal census, and further possesses the following characteristics:

Has at least two hundred twenty-five (225) members paying monthly or annual dues, or both, and does not discriminate against members or potential members or bona fide guests of the members on the basis of gender, race, religion or national origin;

Is organized and operated exclusively for recreation and provides a regulation eighteen-hole golf course for the use of its members and guests, and may or may not also provide for the use of its members and guests a swimming pool and tennis facility; and

Has a clubhouse with not less than ten thousand square feet (10,000 sq. ft.) with suitable kitchen, dining facilities and equipment, serving at least one (1) meal daily, at least five (5) days a week;

It is the express intention of the general assembly that the law concerning the purchase or possession of alcoholic beverages by persons under twenty-one (21) years of age be strictly enforced by the club;

(i)  “Club” also means a for-profit recreational club, organized and existing under the laws of this state, which is located in a county having a population of not less than four hundred thirty-two thousand two hundred (432,200) nor more than four hundred thirty-two thousand three hundred (432,300), as of the 2010 federal census or any subsequent federal census, and further possesses the following characteristics:

Has at least three hundred (300) members, as of December 23, 2015, paying dues with a copy of membership applications on file on the premises and which issues to its members a membership card which authorizes admittance of the member and bona fide guests of such member;

Is organized and operated exclusively for recreation and provides a regulation eighteen-hole golf course for the use of its members and guests, and also may offer for the use of its members and guests a swimming pool and other recreational amenities;

Has a clubhouse with not less than ten thousand square feet (10,000 sq. ft.) with a suitable kitchen, dining facilities, and equipment, serving at least one (1) meal daily at least five (5) days a week;

The club may not compensate or pay any officer, director, agent, or employee any profits from the sale of alcoholic or malt beverages based on the volume of those beverages sold; and

It is the express intention of the general assembly that the law concerning the purchase or possession of alcoholic beverages by persons under twenty-one (21) years of age be strictly enforced by the club;

(i)  “Club” also means a for-profit recreational club, organized and existing under the laws of this state, which is located in a county having a population of not less than one hundred twenty-two thousand nine hundred (122,900) nor more than one hundred twenty-three thousand (123,000), according to the 2010 federal census or any subsequent federal census, and further possesses the following characteristics:

Has at least three hundred (300) members, as of January 1, 2017, paying dues with a copy of membership applications on file on the premises and that issues to its members a membership card which authorizes admittance of the member and bona fide guests of such member;

Is located within a planned residential development consisting of no less than six hundred (600) acres and at least three hundred (300) residential dwelling units, and such residential development contains an eighteen-hole golf course;

Is organized and operated exclusively for recreation and provides a regulation eighteen-hole golf course for the use of its members and guests, and also may offer its members and guests the use of a swimming pool, tennis courts, and other recreational amenities;

Has a clubhouse with not less than nine thousand square feet (9,000 sq. ft.) with a suitable kitchen, dining facilities, and equipment, serving at least one (1) meal daily at least five (5) days a week;

The club does not compensate or pay any officer, director, agent, or employee from any profits from the sale of alcoholic or malt beverages based on the volume of those beverages sold;

The premises, as provided in §57-4-101(a)(2), for a club, whether such parcel comprising the club premises are contiguous or not, shall also include the golf course; tennis courts; all areas of the clubhouse; the area immediately surrounding the swimming pool, if a club offers such amenities; and all other related recreational facilities; and

It is the express intention of the general assembly that the law concerning the purchase or possession of alcoholic beverages by persons under twenty-one (21) years of age be strictly enforced by the club;

(i)  “Club” also means a for-profit membership-based social club, organized and existing under the laws of this state, that is located in a county with a metropolitan form of government having a population of not less than six hundred thousand (600,000), according to the 2010 federal census or any subsequent federal census, and further possesses the following characteristics:

Is located within a building containing three (3) floors and a rooftop area, totaling approximately six thousand square feet (6,000 sq. ft.) that houses a bar, coffee bar, cigar lounge with lockers, meeting and relaxation space, conference rooms, private call rooms, and workstations;

Is within a central business improvement district as of 2020;

Is organized and operated exclusively for offering an upscale business club environment for learning and networking, where members receive exclusive access to amenities and opportunities in the city;

Has at least ten (10) members paying monthly or annual dues, as of January 1, 2020, with a copy of membership applications on file on the premises and that issues to its members a proximity reader security access card which authorizes admittance of the member and bona fide guests of such member;

Offers its members the ability to purchase all club-related services and experiences through cash or credit card;

Offers its members access to multiple locations across the United States, each tailored to its city and located in prime business districts, and offers its members access to experience specialists, who arrange for its members' needs, ranging from dinner reservations, vacation rentals, and unique travel amenities and luxury experiences; and

Does not discriminate against members or potential members or bona fide guests of such members on the basis of gender, race, creed, color, sex, age, religion, or national origin;

The premises for the club, includes all floors of the singular building constituting the club, whether contiguous or not and connected through stairwells and elevators; the rooftop area; and any area within the building designated by the club in its application for licensure for consumption of alcoholic beverages on the premises;

“Commercial airline” includes any airline operating in interstate commerce under a certificate of public convenience and necessity issued by the appropriate federal or state agency, or under an exemption from the requirement of obtaining a certificate of public convenience and necessity but otherwise regulated by an appropriate federal or state agency, with adequate facilities and equipment for serving passengers, on regular schedules, or charter trips, while moving through any county of the state, but not while any such commercial airline is stopped in a county or municipality that has not legalized such sales;

“Commercial airline travel club” means an organization established and operated by or for a commercial airline as defined in this section for the convenience and comfort of airline passengers;

“Commercial passenger boat company” means a company that operates one (1) or more passenger vessels for hire upon navigable waterways and is licensed by the United States Coast Guard to carry not less than fifty (50) passengers on a single vessel. A commercial passenger boat company licensed pursuant to this chapter shall not sell any type of alcoholic beverage or beer while such boat is docked within the boundaries of any local government that has not approved the sale of alcoholic beverages pursuant to §57-4-103. A commercial passenger boat company may only operate out of a county that has a population:

In excess of two hundred eighty-five thousand (285,000), according to the 1980 federal census or any subsequent federal census;

Not less than eighty-three thousand three hundred (83,300) nor more than eighty-three thousand four hundred (83,400), according to the 1980 federal census or any subsequent federal census; or

Not less than one hundred sixty thousand six hundred (160,600) nor more than one hundred sixty thousand seven hundred (160,700), according to the 2010 federal census or any subsequent federal census;

“Commission” means the alcoholic beverage commission, created pursuant to chapter 1 of this title;

(A)  “Community theater” means a facility or theater possessing each of the following characteristics:

The community theater is at least eight (8) years old;

The theater is operated by a not-for-profit corporation which is exempt from taxation under § 501(c) of the Internal Revenue Code of 1954 (26 U.S.C. § 501(c)), as amended, where no member or officer, agent or employee of any community theater shall be paid, or directly or indirectly receive, in the form of salary or other compensation any profits from the sale of alcoholic beverages beyond the amount of such salary as may be fixed by its governing body for the reasonable performance of their assigned duties. All profits from the sale of alcoholic beverages by a not-for-profit corporation shall be used for the operation and maintenance of the community theater, and in furtherance of the purposes of the organization. All profits from the sale of alcoholic beverages by a not-for-profit corporation shall be used for the operation, renovation, refurbishing, and maintenance of the theater. No alcoholic beverages or beverages of any kind shall be possessed or consumed inside the auditorium of such theater during performances in such auditorium;

The theater provides or leases facilities for theatrical programs of cultural, civic and educational interest; and

The theater is located in any county having a population of not less than seven hundred thousand (700,000), according to the 1980 federal census or any subsequent federal census;

“Community theater” also includes a facility or theater possessing each of the following characteristics:

The facility has a performance hall seating not less than two hundred fifty (250) persons, a resource library, rehearsal rooms, and permanent exhibition space of not less than nine thousand square feet (9,000 sq. ft.);

The facility is operated by a not-for-profit corporation which is exempt from taxation under § 501(c) of the Internal Revenue Code of 1954 (26 U.S.C. § 501(c)), as amended, where no member or officer, agent or employee of any community theater shall be paid, or directly or indirectly receive, in the form of salary or other compensation any profits from the sale of alcoholic beverages beyond the amount of such salary as may be fixed by its governing body for the reasonable performance of their assigned duties. All profits from the sale of alcoholic beverages by a not-for-profit corporation shall be used for the operation and maintenance of the facility, and in furtherance of the purposes of the organization;

The facility provides or leases facilities for concerts and programs of cultural, civic and educational interest; and

The facility is located in any county having a population of not less than two hundred eighty-five thousand (285,000) nor more than two hundred eighty-six thousand (286,000), according to the 1990 federal census or any subsequent federal census;

Alcoholic beverages may be sold at a community theater only during one (1) performance or benefit program a day and only one (1) hour before, during and one (1) hour after the performance or benefit program;

“Community theater” also includes a facility or theater possessing each of the following characteristics:

The facility is located in a building that is at least eighty (80) years old;

The facility has a performance hall seating approximately two hundred fifty (250) persons;

The facility is operated by a not-for-profit corporation that is exempt from taxation under § 501(c) of the Internal Revenue Code of 1954 (26 U.S.C. § 501(c)), and no member or officer, agent or employee of any community theater is paid, or directly or indirectly receives, in the form of salary or other compensation, any profits from the sale of alcoholic beverages beyond the amount of the salary as may be fixed by its governing body for the reasonable performance of the person's assigned duties. All profits from the sale of alcoholic beverages by a not-for-profit corporation shall be used for the operation, renovation, refurbishing and maintenance of the facility, and in furtherance of the purposes of the organization;

Alcoholic beverages shall only be sold before or after performances or during intermissions in the performances, and no alcoholic beverages shall be consumed inside the auditorium of the facility; and

The facility is located within a municipality that has authorized the sale of alcoholic beverages for consumption on the premises, in a referendum in the manner prescribed by §57-3-106, in any county having a population of not less than thirty-three thousand five hundred twenty-five (33,525) nor more than thirty-three thousand six hundred (33,600), according to the 2000 federal census or any subsequent federal census;

“Community theater” also includes a privately owned facility possessing each of the following characteristics:

Is a community theater in continuous operation since 1943;

Is primarily a volunteer organization with limited salaried staff;

Has an auditorium with more than three hundred (300) seats;

Is located on an historic square and is allowed to sell alcoholic beverages at up to five (5) special events annually that are held on the historic square along with being allowed to sell alcoholic beverages as provided in subdivision (13)(C); and

Is located in any county having a population of not less than seventy-one thousand three hundred (71,300) nor more than seventy-one thousand four hundred (71,400), according to the 2000 federal census or any subsequent federal census;

“Community theater” also includes a facility or theater possessing each of the following characteristics:

The facility is at least twenty-seven (27) years old;

The facility has a performance hall seating not less than one hundred fifty (150) persons and not more than five hundred (500) persons;

The facility is operated by a not-for-profit corporation which is exempt from taxation under § 501(c) of the Internal Revenue Code of 1954 (26 U.S.C. § 501(c)), as amended, where no member or officer, agent or employee of any community theater is paid, or directly or indirectly receives, in the form of salary or other compensation, any profits from the sale of alcoholic beverages beyond the amount of the salary as may be fixed by its governing body for the reasonable performance of the person's assigned duties. All profits from the sale of alcoholic beverages by a not-for-profit corporation shall be used for the operation, renovation, refurbishing and maintenance of the facility, and in furtherance of the purposes of the organization; and

The facility is located in any county having a population of not less than one hundred thirty-four thousand seven hundred (134,700) nor more than one hundred thirty-four thousand eight hundred (134,800), according to the 2000 federal census or any subsequent federal census;

“Community theater” also includes a municipally owned facility possessing each of the following characteristics:

Is a community theater in continuous operation since 1980;

Has an auditorium with more than three hundred (300) seats;

Provides or leases facilities for concerts, plays and programs of cultural, civic and education interest; and

The facility is located in any municipality that has authorized the sale of alcoholic beverages for consumption on the premises, in a referendum in the manner prescribed by §57-3-106, and the municipality has a population of not less than twenty-three thousand nine hundred twenty (23,920), nor more than twenty-three thousand nine hundred thirty (23,930), according to the 2000 federal census or any subsequent federal census;

“Community theater” also means a theater possessing each of the following characteristics:

The theater was founded in 1923;

The theater has a main performance hall with not less than three hundred eighty (380) seats;

The theater has an auxiliary performance hall with not less than two hundred (200) seats;

The facility is operated by a not-for-profit corporation that is exempt from taxation under § 501(c) of the Internal Revenue Code of 1954 (26 U.S.C. § 501(c)), as amended, where no member, officer, agent, or employee of the theater is paid, or directly or indirectly receives, in the form of salary or other compensation, any profits from the sale of alcoholic beverages beyond the amount of the salary as may be fixed by its governing body for the reasonable performance of the person's assigned duties. All profits from the sale of alcoholic beverages by the not-for-profit corporation must be used for the operation, renovation, refurbishing, and maintenance of the theater, and in furtherance of the purposes of the organization. Alcoholic beverages may be sold before, during, and after performances, and may be consumed inside any auditorium or performance hall within the theater; and

The theater is located within one thousand feet (1,000') of the Tennessee River in a city with a population of one hundred sixty-seven thousand six hundred seventy-four (167,674), according to the 2010 federal census or any subsequent federal census;

“Community theater” also means a theater possessing each of the following characteristics:

The theater opened on December 9, 1949;

The theater originally seated approximately one thousand (1,000) persons in spring-covered chairs;

The theater reopened in July of 2012, serving as a multifunctional event venue, hosting weddings, concerts, nonprofit events, movies, and musical theatre; and

The theater is located in a city with a population of not less than twenty-six thousand one hundred ninety (26,190) and not more than twenty-six thousand one hundred ninety-nine (26,199), according to the 2010 and any subsequent federal census;

“Community theater” also means a theater possessing each of the following characteristics:

The theater was opened in 1995;

The theater's performance hall has seating for at least one hundred twenty (120) patrons;

The theater is used for concerts, plays, and programs of cultural, civic, and educational interest;

The theater is operated by a not-for-profit corporation that is exempt from taxation under § 501(c) of the Internal Revenue Code of 1954 (26 U.S.C. § 501(c)), as amended, where no member, officer, agent, or employee of the theater is paid, or directly or indirectly receives, in the form of salary or other compensation, any profits from the sale of alcoholic beverages beyond the amount of the salary as may be fixed by its governing body for the reasonable performance of the person's assigned duties. All profits from the sale of alcoholic beverages by the not-for-profit corporation must be used for the operation, renovation, refurbishing, and maintenance of the theater, and in furtherance of the purposes of the organization. Alcoholic beverages may be sold before, during, and after performances, and may be consumed inside any auditorium or performance hall within the theater; and

The theater is located in a county having a population not less than two hundred sixty-two thousand six hundred (262,600) nor more than two hundred sixty-two thousand seven hundred (262,700), according to the 2010 federal census or any subsequent federal census;

“Community theater” also means a theater possessing each of the following characteristics:

The theater began operating in 1965;

The theater is the only major nonprofit professional performing arts resource in rural Tennessee, and one (1) of the ten (10) largest professional theaters in rural America;

The theater serves more than one hundred forty-five thousand (145,000) visitors annually with two (2) indoor and two (2) outdoor stages;

The theater provides young audience productions, a comprehensive dance program, a concert series, and touring shows;

The theater was the recipient of the Governor's Arts Award for the state of Tennessee in 1984;

The theater is operated by a nonprofit corporation that is exempt from taxation under § 501(c) of the Internal Revenue Code of 1954 (26 U.S.C. § 501(c)), as amended, where no member, officer, agent, or employee of the theater is paid, or directly or indirectly receives, in the form of salary or other compensation, any profits from the sale of alcoholic beverages beyond the amount of the salary as may be fixed by its governing body for the reasonable performance of the person's assigned duties. All profits from the sale of alcoholic beverages by the nonprofit corporation must be used for the operation, renovation, refurbishing, and maintenance of the theater, and in furtherance of the purposes of the organization. Alcoholic beverages may be sold before, during, and after performances, and may be consumed inside any auditorium or performance hall within the theater, or on theater property contiguous to an outdoor performance stage; and

The theater is located in a city having a population of not less than ten thousand seven hundred ninety (10,790) and not more than ten thousand seven hundred ninety-nine (10,799), according to the 2010 federal census or any subsequent federal census;

(A)  “Convention center” means a facility possessing each of the following characteristics:

Owned by the state, municipal and/or county government, or a nonprofit, tax exempt, charitable organization that operates a symphony orchestra, and leased or operated by that government or by a nonprofit charitable corporation established to operate such facility;

Designed and used for the purposes of holding meetings, conventions, trade shows, classes, dances, banquets and various artistic, musical or other cultural events;

A convention center does not include a building located within one thousand (1,000) yards of both a student museum and a zoological park; provided, that any restaurant, located within a former world's fair site or a zoological park and which meets the requirements of subdivision (30), shall be eligible for licensure under this chapter as long as the requirements of this chapter are otherwise met;

A convention center also does not include a building which is more than twenty (20) years old and is located in any county having a population of not less than two hundred eighty-seven thousand seven hundred (287,700) nor more than two hundred eighty-seven thousand eight hundred (287,800), according to the 1980 federal census or any subsequent federal census;

(a)  Except as provided for in (14)(A)(iii)(b ), which state-owned facility, operated by a nonprofit charitable corporation established to operate such facility, has a designated, restricted area outside the seating area of any theater within which area the consumption of such alcoholic beverages shall be permitted. The sale of such alcoholic beverages in such facility is limited to no more than one (1) hour and fifteen (15) minutes prior to a meeting, show, performance, reception, or other similar event, and to no later than thirty (30) minutes after such event; and

In a county having a metropolitan form of government and a population in excess of five hundred thousand (500,000), according to the 1990 federal census or any subsequent federal census, which state-owned facility, operated by a nonprofit charitable corporation established to operate such facility, or facility owned by a nonprofit, tax exempt, charitable organization that operates a symphony orchestra, has designated an area within or adjacent to any theatre or meeting space, or adjacent to the facility within which area the consumption of alcoholic beverages shall be permitted. Nothing herein shall restrict the ability of a convention center, as defined herein, from adjusting the designated area within or adjacent to its theatre areas, upon adequate prior notice to the commission;

Located in a municipality having a population in excess of one hundred fifty thousand (150,000) and in a county having a population in excess of two hundred thousand (200,000), or both, according to the 1980 federal census or any subsequent federal census;

A convention center licensed under this subdivision (14)(A) shall have the privilege of granting a franchise for the provision of food or beverage, including alcoholic beverages, on its premises, and the holder of the franchise shall also be considered a convention center under this subdivision (14)(A);

“Convention center” also means a facility meeting the criteria of subdivision (14)(A)(i) and (ii) and located in a premiere resort city as defined by §67-6-103(a)(3)(B)(i);

“Convention center” also means a facility possessing each of the following characteristics:

Owned by a county public building authority at the time of development;

Designed and used for the purposes of attracting conventions, business travelers, tourists and other visitors to promote economic development;

Located at the intersection of Interstate 24 and Highway 41 near mile marker 114;

Occupies an area of not less than approximately thirteen thousand five hundred square feet (13,500 sq. ft.); and

Includes a full commercial kitchen to provide meals and catering services;

“Convention center” also means a facility possessing each of the following characteristics:

Is owned by a quasi-governmental development agency;

Is designed and used for the purposes of attracting conventions, business travelers and tourists to the area and is vital in promoting economic development, fostering community activities, providing training and seminar space for business and industries and in encouraging tourism;

Is available for community, industry and private events;

Is the only one of its kind in the area;

Has a seating capacity of approximately three hundred (300) and is fully equipped with tables, chairs, linens, dishware and a catering kitchen;

Occupies an area of approximately eight thousand five hundred square feet (8,500 sq. ft.) on acreage surrounding Tellico Lake; and

Is located in a county having a population of not less than forty-four thousand five hundred (44,500) nor more than forty-four thousand six hundred (44,600), according to the 2010 federal census or any subsequent federal census; and

No member or officer, agent or employee of any convention center as defined by this section shall be paid, or directly or indirectly receive, in the form of salary or other compensation any profits from the sale of spirituous liquors, wines, champagnes, malt beverages or any other alcoholic beverage beyond the amount of such salary as may be fixed by its governing body out of the general revenue of the center. All profits from the sale of such alcoholic beverages shall be used for the operation and maintenance of the convention center;

“Country club located on an historic property” means a country club that is located in a county having a population of not less than forty-four thousand five hundred (44,500) nor more than forty-five thousand (45,000), according to the 1990 federal census or any subsequent federal census, and has the following characteristics:

Sits on real property that was formerly the home of the International Printing Pressmen Union;

Has a dining facility; and

Is located adjacent to an eighteen-hole golf course;

(A)  “Festival operator” means a person licensed under this subdivision (16) who is either a for-profit business operating a festival for a period of up to seven (7) days in length in which alcoholic beverages or beer will be sold, given away, or otherwise dispensed or a third party with whom such for-profit business engages to conduct alcoholic beverage or beer sales during such festival;

The commission shall issue a license to a festival operator upon the payment of a fee of one thousand dollars ($1,000) per day of the festival, and the submission of an application on a form prescribed by the commission that provides proof satisfactory of the following information, to the satisfaction of the commission:

The premises on which alcoholic beverages or beer will be served, sold, dispensed, or consumed is sufficiently designated, enclosed, secured, and maintained;

Adequate security for the festival is provided;

The number and location of each point of sale in which alcoholic beverages or beer will be served, sold, dispensed, or consumed is specified. If the operator of any such point of sale, including any person or entity that receives any portion of the proceeds of the sale of alcoholic beverages or beer from that point of sale, is different from the festival operator, the name and relevant information of such other operator must be specified on the application to the commission, and the commission may determine that such other operator is required to obtain an additional festival operator license;

The staff selling, serving, or dispensing alcoholic beverages or beer are adequately trained and supervised in the service of alcoholic beverages and beer and on the applicable laws regarding such service;

The city or county in which, or the state governmental entity responsible for the property on which, the festival is to be held has approved the festival; and

If the applicant intends to sell, serve, or dispense beer, the applicant has a beer permit issued in accordance with chapter 5 of this title;

No person licensed under this title, operating in conjunction with a festival operator licensee, or performing any activities for which a license is otherwise required under this title, other than a festival operator or special occasion licensee licensed under this section, may provide any service, item, or other thing of value to a festival operator or with respect to a festival operator's festival, except as may be expressly authorized by the commission. Additionally, no festival operator may receive or accept any item or service that a person under this subdivision (16) is prohibited from providing. All alcoholic beverages used for the festival must be purchased from wholesalers licensed under §57-3-203. Notwithstanding any law to the contrary, a wholesaler may buy back any unopened and resalable bottles of alcoholic beverages at the end of the festival. A wholesaler shall keep all records, as may be required by the commission, necessary to document the purchase of such products pursuant to this subdivision (16);

All applicable taxes, including the tax levied on the sale of alcoholic beverages for consumption on the premises under §57-4-301, must be remitted as required by law;

Alcoholic beverages and beer may be sold, given away, dispensed, or consumed only within hours sufficient to ensure adequate public health, safety, and welfare as determined by the commission or local beer board, as applicable;

Notwithstanding any law to the contrary, if the commission finds that any of the requirements of this subdivision (16) have not been, or are not being, met by a festival operator during a festival or after the completion of a festival, or that the festival operator misrepresented information in the person's application, the commission may use the failure or misrepresentation as the basis to summarily suspend the license of the festival operator, to deny any future applications for a festival operator license for a period of up to two (2) years after the festival in which the failure or misrepresentation occurred, or to issue a fine of up to ten thousand dollars ($10,000) per violation, which disciplinary action must be resolved prior to the issuance of any new festival operator license to the festival operator;

(A)  “Historic inn” means a historic building that is located in a county having a population of not less than forty-four thousand five hundred (44,500) nor more than forty-five thousand (45,000), according to the 1990 federal census or any subsequent federal census, and has the following characteristics:

Was built in 1824 and was formerly the oldest continuously operating inn in Tennessee;

Was once visited by United States Presidents Andrew Jackson, Andrew Johnson and James K. Polk, all of whom stayed and dined there; and

Has a dining facility and a total of nine (9) rooms and suites;

“Historic inn” also means a country inn that is located in any county having a population of not less than seventy-one thousand one hundred (71,100) nor more than seventy-one thousand two hundred (71,200), according to the 2000 federal census or any subsequent federal census, and has the following characteristics:

Has been in operation since 1938;

Is located within one-half (½) mile of the Great Smoky Mountains National Park;

Has a total of twenty-four (24) guest rooms and a dining facility offering fine dining to guests and other patrons with a seating capacity of no more than sixty (60); and

Does not discriminate against any patron on the basis of age, gender, race, religion or national origin; and

“Historic inn” also means an inn that has all of the following characteristics:

Contains at least ten (10) transient guest rooms in the main house;

Has a separate meeting lodge and facility that also houses at least four (4) transient suites;

Has at least two (2) kitchens on the premises and offers at least two (2) meals daily;

Has an open-air, outdoor, sylvan chapel suitable for the accommodation of wedding ceremonies;

Provides entertainment in the form of cooking demonstrations, storytelling and dulcimer playing;

Is listed in Distinguished Inns of North America, 16th Edition, by Select Registry;

Is located in any county having a population of not less than one hundred five thousand eight hundred (105,800) nor more than one hundred five thousand nine hundred (105,900), according to the 2000 federal census or any subsequent federal census; and

Does not discriminate against any patron on the basis of age, gender, race, religion or national origin;

(A)  “Historic interpretive center” means a facility possessing each of the following characteristics:

The center is located in an historic area of town where structures listed on the national register of historic places are located;

The center operates as a not-for-profit corporation that is exempt from taxation under § 501(c) of the Internal Revenue Code of 1954 (26 U.S.C. § 501(c)), as amended, where no member or officer, agent or employee of any historic interpretive center shall be paid, or directly or indirectly receive, in the form of salary or other compensation any profits from the sale of alcoholic beverages beyond the amount of such salary as may be fixed by its governing body for the reasonable performance of the assigned duties. All profits from the sale of alcoholic beverages by a not-for-profit corporation shall be used for the operation and maintenance of the historic interpretive center, and in furtherance of the purposes of the organization. Alcoholic beverages may be consumed inside the center at locations designated by the board of the not-for-profit corporation;

The center provides facilities for programs of cultural, civic, and educational interest, including, but not limited to, musical concerts, films, receptions, exhibitions, seminars or meetings; and

The center is located in any county having a population of not less than seven hundred thousand (700,000), according to the 1980 federal census or any subsequent federal census;

“Historic interpretive center” also means a commercially operated facility owned by a not-for-profit organization possessing each of the following characteristics:

Is located on the Cumberland Plateau, within one (1) mile of a national river and recreation area;

Offers historic interpretation of Victorian-era British architecture, lifestyle, and settlement on the Cumberland Plateau in the 1880s and thereafter;

Operates public education programs in multiple historic buildings built from 1880 to 1884, including the oldest unchanged and preserved public library in America;

Preserves the historic character of a British settlement on the Cumberland Plateau in the 1880s through a board of directors engaged in land acquisition and management, design review of new construction and renovation, and the public enjoyment of period crafts, music, and folklife through the organization of festivals, support for local artists through the sale of arts and crafts in a commissary;

Owns, sells, and develops home sites for construction of design-approved homes;

Offers overnight accommodations to visitors in historic inn and cottage settings;

Operates a restaurant serving breakfast, lunch, and dinner to visitors, community residents, guests, and members of the public;

Attracts thousands of visitors annually from around the world;

Does not discriminate against any patron on the basis of age, gender, race, religion, or national origin; and

Is located within any county having a population of not less than nineteen thousand five hundred (19,500) nor more than nineteen thousand seven hundred seventy five (19,775), according to the 2000 federal census or any subsequent federal census;

“Historic interpretive center” also means a facility possessing each of the following characteristics:

Was founded in 1983;

Is located on Martin Luther King Boulevard;

Provides programs of historical, cultural, civic, and educational interest, including, but not limited to, art exhibitions and musical concerts;

Is owned by a municipal or county government;

Alcoholic beverages shall only be sold at the center before or during performances; and

Is located in any county having a population of not less than three hundred thirty-six thousand four hundred (336,400) nor more than three hundred thirty-six thousand five hundred (336,500), according to the 2010 federal census or any subsequent federal census;

“Historic mansion house site” means the buildings and grounds of a historic mansion house, located in any county having a metropolitan form of government, included in the Tennessee register of historic places, and operated by the Association for the Preservation of Tennessee Antiquities, and including Association for the Preservation of Tennessee Antiquities sites owned by this state. “Historic mansion house site” also means the buildings and grounds of an historic mansion house located in any county having a metropolitan form of government which has been conveyed by this state in trust to a board of trustees created and appointed in accordance with §§4-13-103 and4-13-104, and for admission to which reasonable fees are charged as provided in §4-13-105. This subdivision (19) shall apply only to counties having a population of four hundred fifty thousand (450,000) or greater, according to the 1980 federal census or any subsequent census;

(A)  “Historic performing arts center” means a facility possessing each of the following characteristics:

The center is located in a restored theater that is at least fifty (50) years old and listed on the national register of historic places;

The center is operated by a for-profit corporation, or not-for-profit corporation which is exempt from taxation under Section 501(c) of the Internal Revenue Code of 1954 (26 U.S.C. § 501(c)), as amended, where no member or officer, agent or employee of any historic performing arts center shall be paid, or directly or indirectly receive, in the form of salary or other compensation any profits from the sale of alcoholic beverages beyond the amount of such salary as may be fixed by its governing body for the reasonable performance of their assigned duties. All profits from the sale of alcoholic beverages by a not-for-profit corporation shall be used for the operation and maintenance of the historic performing arts center, and in furtherance of the purposes of the organization. All profits from the sale of alcoholic beverages by a for-profit corporation shall be used for the operation, renovation, refurbishing, and maintenance of the center;

The center provides facilities for programs of cultural, civic, and educational interest, including, but not limited to, stage plays, musical concerts, films, dance performances, receptions, exhibitions, seminars or meetings; and

The center is located in any county having a population of:

“Historic performing arts center” also means a facility possessing each of the following characteristics:

The center is located in a restored theater or music hall that is at least fifty (50) years old and listed on the national register of historic places;

The center is operated by a for-profit organization, or a not-for-profit organization that is exempt from taxation under § 501(c) of the Internal Revenue Code of 1954 (26 U.S.C. § 501(c)), as amended, and where no member, officer, agent or employee of the not-for-profit organization receives any incentive compensation relating directly to the sale of alcoholic beverages beyond the amount of such salary and other compensation as may be fixed by the not-for-profit organization's governing body for the reasonable performance of such member's, officer's, agent's or employee's assigned duties. A portion of the profits from the sale of alcoholic beverages at the center shall be used for the operation, renovation, refurbishing or general maintenance of the center. Alcoholic beverages shall only be sold at the center before, during or after performances. Alcoholic beverages may be consumed inside the center at locations designated by its governing body;

The center provides facilities for programs of cultural, civic, and educational interest, including, but not limited to, stage plays, musical concerts, films, dance performances, receptions, exhibitions, seminars or meetings; and

The center is located in any county having a population in excess of five hundred thousand (500,000), which has a metropolitan form of government;

“Historic performing arts center” also means a facility possessing each of the following characteristics:

Was opened in 1921;

Is on the national register of historic places;

Is located on Broad Street;

Provides programs of cultural, civic, and educational interest, including, but not limited to, operas and musical concerts;

Is owned by a municipal or county government, or nonprofit, tax exempt, charitable organization. Alcoholic beverages shall only be sold at the center before, during or after performances; and

Is located in any county having a population of not less than three hundred seven thousand eight hundred (307,800) nor more than three hundred seven thousand nine hundred (307,900), according to the 2000 federal census or any subsequent federal census;

“Historic performing arts center” also means a facility possessing each of the following characteristics:

Was opened in 1924;

Was originally designed as a municipal auditorium and all-purpose exhibition hall;

Is located on McCallie Avenue;

Is owned by a municipal or county government, or nonprofit, tax exempt, charitable organization. Alcoholic beverages shall only be sold at the center before, during or after performances;

Provides programs of cultural, civic, and educational interest, including, but not limited to, stage plays and musical concerts; and

Is located in any county having a population of not less than three hundred seven thousand eight hundred (307,800) nor more than three hundred seven thousand nine hundred (307,900), according to the 2000 federal census or any subsequent federal census;

“Historic performing arts center” also means a facility possessing each of the following characteristics:

Is on the national register of historic places;

Was built in 1937;

Is located on Main Street;

Is an entertainment venue for live performances, movies and other events. Alcoholic beverages shall only be sold at the center before, during or after the performances, movies or other events; and

Is located in any county having a population of not less than one hundred twenty-six thousand six hundred (126,600) nor more than one hundred twenty-six thousand seven hundred (126,700), according to the 2000 federal census or any subsequent federal census;

“Historic performing arts center” also means a facility possessing each of the following characteristics:

Was built in 1931;

Is on the national register of historic places;

Is maintained by a not-for-profit corporation which is exempt from taxation under § 501(c) of the Internal Revenue Code of 1954  (26 U.S.C. § 501(c)), as amended;

Has an auditorium that seats more than seven hundred fifty (750) people;

Provides programs of cultural, civic, and educational interest, including, but not limited to, stage plays and musical concerts; and

Is located in any county having a population of not less than one hundred fifty-three thousand (153,000) nor more than one hundred fifty-three thousand one hundred (153,100), according to the 2000 federal census or any subsequent federal census;

“Historic performing arts center” also means a facility possessing each of the following characteristics:

The center:

Is located adjacent to a restored theater that is at least fifty (50) years old and listed on the national register of historic places; and

Shares a plaza with such restored theater;

The center is operated by a for-profit corporation, or not-for-profit corporation which is exempt from taxation under § 501(c) of the Internal Revenue Code of 1954 (26 U.S.C. § 501(c)), as amended, where no member or officer, agent or employee of any historic performing arts center shall be paid, or directly or indirectly receive, in the form of salary or other compensation any profits from the sale of alcoholic beverages beyond the amount of such salary as may be fixed by its governing body for the reasonable performance of their assigned duties. All profits from the sale of alcoholic beverages by a not-for-profit corporation shall be used for the operation and maintenance of the historic performing arts center, and in furtherance of the purposes of the organization. All profits from the sale of alcoholic beverages by a for-profit corporation shall be used for the operation, renovation, refurbishing, and maintenance of the center. Alcoholic beverages may be sold before, during, and after events or during intermissions in such events;

The center provides facilities for programs of cultural, civic, and educational interest to further the mission of the for-profit or not-for-profit corporation, including, but not limited to, stage plays, musical concerts, films, dance performances, receptions, exhibitions, seminars, or meetings; and

The center is located in a county having a population of more than nine hundred thousand (900,000), according to the 2010 federal census or any subsequent federal census;

(A)  “Hotel” (Motel) means every building or other structure kept, used, maintained, advertised and held out to the public to be a place where food is actually served and consumed and sleeping accommodations are offered for adequate pay to travelers and guests, whether transient, permanent, or residential, in which twenty (20) or more rooms are used for the sleeping accommodations of such guests and having one (1) or more public dining rooms, with adequate and sanitary kitchen and a seating capacity of at least fifty (50) at tables, where meals are regularly served to such guests, such sleeping accommodations and dining rooms being conducted in the same building or in separate buildings or structures used in connection therewith that are on the same premises and are a part of the hotel operation. Motels meeting the qualifications set out herein for hotels shall be classified in the same category as hotels. Hotels shall have the privilege of granting franchises for the operation of a restaurant on their premises and the holder of such franchise shall be included in the definition of “hotel” hereunder; and property contiguous to a hotel, except property located in any county having a population of not less than seventy-seven thousand seven hundred fifty (77,750) nor more than seventy-seven thousand seven hundred ninety (77,790), according to the 1980 federal census or any subsequent federal census, which is owned by the same entity as the hotel and operated by the same entity as the hotel, which property either serves travelers and guests other than as a separate commercial establishment or is operated as a major entertainment complex serving in excess of one million (1,000,000) persons per year;

“Hotel” also means and includes all entities previously described wherein sleeping accommodations are offered for adequate pay to travelers and guests, whether transient, permanent or residential, in which thirty (30) or more suites are used for sleeping accommodations of such guests and having eating facilities in each room for four (4) or more persons with an adequate and sanitary central kitchen from which meals are regularly prepared and served to guests in such suites. For the purpose of this section, “suite” is defined as a guest facility within a hotel where living, sleeping and dining are regularly provided for such guests within the individual units provided for guests. No such hotel or suite as defined in this subdivision (21)(B) shall be authorized to charge for, inhibit or otherwise interfere in any way with the rights of its guests or tenants to carry into rooms or suites rented by them their own bottles, packages or other containers of alcoholic beverages and/or to use or serve them to themselves, their own visitors or guests within the individual units rented or leased by them;

“Hotel” also includes facilities owned and operated by an individual or event-management organization which plans and coordinates all phases of any function for retreats by groups of persons having similar backgrounds or purposes, and which offers meeting and banquet facilities, dining services, recreation and leisure activities in facilities which include a dining inn with seating capacity of three hundred (300), and a complex which includes meeting and banquet facilities with a seating capacity of two hundred (200), overnight accommodations for at least forty (40), and a fifty (50) acre tract of land with picnic accommodations for at least four thousand (4,000), and a facility with seating capacity of four hundred (400). The scope of any license authorized by this subdivision (21)(C) includes picnic service on the grounds of the complex owned and operated by the licensee;

“Hotel” also includes a residence hotel located in the central business district of any municipality having a population of more than three hundred thousand (300,000), according to the 1990 federal census or any subsequent federal census and having a common smoking room and lobby area;

(i)  “Hotel” also includes a bed and breakfast establishment as defined in §68-14-502, where meals are regularly served to guests and where sleeping accommodations and dining facilities being conducted in the same buildings or structures used in connection therewith are on the same premises and are part of the hotel operation. The premises upon which such establishment is located shall be within the boundaries of a clearly defined arts district which is owned and operated by the same entity and having a common courtyard which is contiguous to all buildings and structures on the premises. The dining facilities, including beverages, may be served from an adequate and sanitary central kitchen and storage facility;

This subdivision (21)(E) applies in any municipality having a population in excess of one hundred fifty thousand (150,000), according to the 1990 federal census or any subsequent federal census;

(i)  “Hotel” also includes a bed and breakfast establishment as defined in §68-14-502, where meals are regularly served to guests and where sleeping accommodations and dining facilities being conducted in the same buildings or structures used in connection therewith are on the same premises and are part of the hotel operation. In such establishment there must be two (2) rooms for sleeping accommodations and a seating capacity of twenty-five (25) people at tables. The premises upon which such establishment is located shall have a business conference center;

Subdivision (21)(F)(i) applies in any county having a population of not less than eight hundred thousand (800,000), according to the 1990 federal census or any subsequent federal census;

“Hotel” also includes a facility located in a county which contains a population of not less than eighty-five thousand nine hundred (85,900) nor more than eighty-six thousand one hundred sixty (86,160), according to the 1990 federal census or any subsequent census, which facility contains the following characteristics:

Contains at least forty (40) rooms for guest sleeping accommodations offered for adequate pay to travelers and guests;

Contains at least three (3) separate dining rooms with adequate sanitary kitchen facilities, either common or separate, where meals are regularly served to guests;

Is located on real property of at least one thousand fifty (1,050) acres, notwithstanding that such real property is not contiguous and may be divided by a public or private road;

Contains a swimming pool, hiking trails, and biking trails for use by registered guests;

Has access to the Double Branch Creek and tributaries, notwithstanding that such creek and tributaries are not contiguous and may be divided by a public or private road;

Has at least two thousand seven hundred sixteen (2,716) acres of land that has been placed in conservation easement;

Provides a full service spa for use by registered guests of the facility;

(i)  “Hotel” also includes a facility that possesses the following characteristics:

Was built in 1917;

Is listed on the National Register of Historic Places;

Has at least twelve (12) rooms for guest sleeping accommodations with at least one (1) room being handicap accessible;

Has a dining area that seats at least one hundred sixty (160) people;

Has a music and entertainment venue that is at least two thousand nine hundred square feet (2,900 sq. ft.);

Has a two-acre meadow suitable for wedding ceremonies and other events; and

Is located in any county having a population of not less than thirty-seven thousand five hundred (37,500) nor more than thirty-seven thousand six hundred (37,600), according to the 2000 federal census or any subsequent federal census.

A hotel under this subdivision (21)(G) must comply with all the requirements of this chapter and shall be subject to the restrictions imposed upon licenses other than §57-4-103;

(i)  “Hotel” also means a facility that possesses all of the following characteristics:

Offers to the public:

Is owned by and located on the campus of a private institution of higher education located on at least ten thousand (10,000) acres; and

Is located in any county having a population of not less than thirty-nine thousand two hundred (39,200) nor more than thirty-nine thousand three hundred (39,300), according to the 2000 federal census or any subsequent federal census;

A hotel under this subdivision (21)(H) must comply with all the requirements of this chapter and shall be subject to the restrictions imposed upon licenses other than §57-4-103;

“Limited service restaurant” means a facility possessing each of the following characteristics:

(A)  “Museum” means a building or institution serving as a repository of natural, scientific or literary curiosities or works of art for public display and further possesses the following characteristics:

The museum is at least fifty (50) years old; and

The museum is located in a county having a population in excess of seven hundred thousand (700,000), according to the 1980 federal census or any subsequent federal census;

“Paddlewheel steamboat company” means a company that operates one (1) or more paddlewheel steamboats for hire in interstate commerce upon navigable waterways and is licensed by the United States coast guard to carry not less than one hundred (100) passengers on a single vessel, with adequate facilities and equipment for serving regular meals, on regular schedules, or charter trips, while moving through or docked in any county of the state; provided, however, that no paddlewheel steamboat company licensed pursuant to this chapter shall sell any type of alcoholic beverage or beer while such paddlewheel steamboat is docked within the boundaries of any local government which has not approved the sale of alcoholic beverages pursuant to §57-4-103;

“Passenger train” includes any passenger train operating in interstate commerce under a certificate of public convenience and necessity issued by the appropriate federal or state agency, with adequate facilities and equipment for serving passengers, on regular or special schedules, or charter trips, while moving through any county of the state, but not while any such passenger train is stopped in a county or municipality that has not legalized such sales;

A “premier type tourist resort” means:

(A)  “Premises,” when:

Referring to an establishment licensed under this chapter;

Such establishment is located within an historical district which has been designated as a national historic landmark;

Such national historic landmark centers around a historic public street or right-of-way;

Such a public street or right-of-way is closed to motor vehicular traffic, whether permanently or on a regular basis; and

But only to the extent that such premises are located and fronting upon such historic street and not located on or fronting upon another street or right-of-way within such national historic landmark;

“Public aquarium” means a facility which contains a collection of living aquatic animals whose sole or primary habitat is water and which facility provides for care and housing for public exhibition, and also possesses the following characteristics:

(A)  “Retirement center” means a facility that contains each of the following characteristics:

The center is located in a county having a population of not less than one hundred twenty-six thousand six hundred (126,600) nor more than one hundred twenty-six thousand seven hundred (126,700), according to the 2000 federal census or any subsequent federal census;

The center is located on a single parcel of land not less than forty eight (48) acres and not more than forty-nine (49) acres in area;

The center will consist of individual living unit apartments, individual living unit villas, an assisted living facility, a nursing home facility, a club house and common areas;

The center will have a club house that houses a health club, game room, lounge and a dining facility;

The center's lounge in the club house will offer to the center's residents and their guests only food, nonalcoholic beverages, mixed alcoholic drinks, wine and beer, as well as make available in the dining facility and other areas within the center's property, for the center's residents and guests only, mixed alcoholic drinks, wine and beer; and

“Special historic district” means any area with specific boundaries that possesses the following characteristics:

“Wine” means the product of the normal alcoholic fermentation of the juice of fresh, sound, ripe grapes, with the usual cellar treatment and necessary additions to correct defects due to climatic, saccharine and seasonal conditions, including champagne, sparkling and fortified wine of an alcoholic content not to exceed twenty-one percent (21%) by volume. No other product shall be called “wine” unless designated by appropriate prefixes descriptive of the fruit or other product from which the same was predominantly produced, or an artificial or imitation wine; and

(A)  “Zoological institution” means a facility which contains a zoological garden or collection of living animals and provides for their care and housing for public exhibition and further possesses the following characteristics:

The zoo is owned, operated, or leased by a municipal or county government;

The zoo is at least fifty (50) years old; and

The zoo is located in a county having a population in excess of seven hundred thousand (700,000), according to the 1980 federal census or any subsequent federal census.

Acts 1967, ch. 211, § 1; 1972, ch. 682, § 2; 1972, ch. 756, § 3; 1975, ch. 111, § 3; 1975, ch. 347, § 1; 1979, ch. 401, § 2; T.C.A., § 57-153; Acts 1980, ch. 895, § 1; 1980, ch. 898, § 2; 1981, ch. 404, § 2; 1981, ch. 467, §§ 1-4; 1981, ch. 475, § 2; 1982, ch. 691, § 1; 1982, ch. 931, §§ 1-4; 1983, ch. 52, § 2; 1983, ch. 300, §§ 3, 6; 1983, ch. 305, § 1; 1983, ch. 306, § 1; 1983, ch. 391, § 1; 1983, ch. 454, § 4; 1983, ch. 461, §§ 1-4; 1983, ch. 469, § 2; 1983, ch. 481, § 1; 1984, ch. 522, § 1; 1984, ch. 569, § 2; 1984, ch. 599, § 1; 1984, ch. 858, §§ 1-4; 1984, ch. 871, § 1; 1984, ch. 975, § 2; 1985, ch. 41, § 1; 1985, ch. 47, § 1; 1985, ch. 117, § 1; 1985, ch. 190, § 2; 1986, ch. 516, § 1; 1986, ch. 899, § 3; 1987, ch. 73, § 1; 1987, ch. 218, § 1; 1987, ch. 444, §§ 3, 4; 1987, ch. 456, § 1; 1988, ch. 792, § 1; 1988, ch. 942, §§ 1, 2; 1989, ch. 50, § 1; 1989, ch. 361, § 1; 1989, ch. 459, § 1; 1990, ch. 718, § 1; 1990, ch. 730, §§ 1, 2; 1990, ch. 853, § 1; 1990, ch. 949, § 1; 1991, ch. 462, § 1; 1992, ch. 674, § 2; 1992, ch. 675, § 2; 1993, ch. 308, §§ 1, 2; 1994, ch. 657, § 1; 1994, ch. 822, § 1; 1994, ch. 837, § 1; 1994, ch. 933, § 1; 1995, ch. 18, § 1; 1995, ch. 306, § 2; 1996, ch. 688, § 1; 1996, ch. 730, § 1; 1996, ch. 749, § 2; 1996, ch. 1017, § 1; 1997, ch. 146, § 1; 1997, ch. 281, §§ 1-7; 1998, ch. 722, § 1; 1998, ch. 786, § 1; 1998, ch. 795, § 6; 1998, ch. 798, § 1; 1998, ch. 939, §§ 2, 3; 1998, ch. 966, §§ 1, 2; 1999, ch. 211, § 1; 1999, ch. 314, §§ 1, 2, 4; 1999, ch. 525, § 2; 2000, ch. 657, § 2; 2000, ch. 727, § 1; 2001, ch. 64, § 2; 2001, ch. 74, § 1; 2001, ch. 84, § 1; 2001, ch. 112, §§ 1-3; 2001, ch. 371, § 2; 2001, ch. 383, §§ 2, 3; 2002, ch. 647, § 1; 2002, ch. 661, § 1; 2002, ch. 676, § 1; 2002, ch. 679, §§ 1, 2; 2002, ch. 705, §§ 1, 2; 2002, ch. 832, §§ 1, 3, 4; 2003, ch. 132, § 1; 2003, ch. 309, §§ 1, 2; 2003, ch. 314, § 1; 2004, ch. 544, § 1; 2004, ch. 671, §§ 1, 2; 2004, ch. 676, § 1; 2004, ch. 710, § 1; 2004, ch. 857, § 1; 2004, ch. 876, § 6; 2005, ch. 212, § 5; 2005, ch. 253, § 2; 2005, ch. 422, §§ 1-10; 2006, ch. 612, §§ 1-3; 2006, ch. 733, §§ 1-6, 8; 2006, ch. 865, § 1; 2007, ch. 150, §§ 1-3; 2007, ch. 203, § 1; 2007, ch. 258, § 1; 2007, ch. 342, § 1; 2007, ch. 492, § 1; 2008, ch. 634, § 2; 2008, ch. 649, § 1; 2008, ch. 653, § 1; 2008, ch. 713, § 1; 2008, ch. 784, § 1; 2009, ch. 49, § 1; 2009, ch. 98, § 1; 2009, ch. 109, § 1; 2009, ch. 168, § 1; 2009, ch. 266, §§ 1, 2; 2009, ch. 357, §§ 1, 2; 2009, ch. 572, §§ 1, 2; 2010, ch. 622, § 1; 2010, ch. 623, § 1; 2010, ch. 632, § 1; 2010, ch. 641, § 1; 2010, ch. 647, § 1; 2010, ch. 649, § 1; 2010, ch. 664, § 1; 2010, ch. 695, § 1; 2010, ch. 744, § 1; 2010, ch. 763, §§ 1-3; 2010, ch. 771, § 1; 2010, ch. 835, §§ 1-5; 2010, ch. 927, §§ 2, 3; 2010, ch. 1121, §§ 1-3; 2010, ch. 1133, §§ 2, 3; 2011, ch. 31, § 1; 2011, ch. 53, § 1; 2011, ch. 110, § 1; 2011, ch. 136, § 1; 2011, ch. 440, § 1; 2011, ch. 447, §§ 3-8, 11, 12; 2011, ch. 503, §§ 1, 2; 2012, ch. 661, § 1; 2012, ch. 790, §§ 1, 2; 2012, ch. 947, § 8; 2012, ch. 1005, §§ 1-3; 2012, ch. 1035, §§ 3, 4; 2012, ch. 1045, § 1; 2013, ch. 37, § 1; 2013, ch. 160, § 1; 2013, ch. 218, § 1; 2013, ch. 230, § 1; 2013, ch. 295, §§ 1, 2; 2013, ch. 371, § 1; 2013, ch. 458, §§ 1, 2; 2014, ch. 506, § 1; 2014, ch. 643, §§ 1-4; 2014, ch. 661, §§ 1, 2; 2014, ch. 843, §§ 1, 2; 2014, ch. 861, § 7; 2014, ch. 907, §§ 1, 3, 4; 2014, ch. 1001, §§ 1-5, 8, 10; 2015, ch. 70, § 1; 2015, ch. 116, § 1; 2015, ch. 119, § 1; 2015, ch. 269, § 4; 2015, ch. 279, § 1; 2015, ch. 336, §§ 2, 3; 2015, ch. 391, §§ 2, 3; 2015, ch. 428, § 2; 2015, ch. 446, § 1; 2015, ch. 458, §§ 1-5; 2016, ch. 791, §§ 1, 2; 2016, ch. 858, § 17; 2016, ch. 874, § 1; 2016, ch. 922, §§ 1-4; 2016, ch. 953, §§ 1-3; 2016, ch. 964, § 1; 2016, ch. 965, §§ 1, 2; 2016, ch. 1022, § 1; 2017, ch. 119, § 1; 2017, ch. 141, § 1; 2017, ch. 142, § 1; 2017, ch. 147, §§ 9-11; 2017, ch. 160, § 1; 2017, ch. 173, § 1; 2017, ch. 195, § 1; 2017, ch. 214, §§ 1-3; 2017, ch. 223, § 1. 2017, ch. 273, § 1; 2017, ch. 337, § 1; 2017, ch. 371, § 1; 2017, ch. 394, § 1; 2017, ch. 428, § 1; 2018, ch. 680, §§ 1, 2; 2018, ch. 740, §§ 1-4; 2018, ch. 755, § 4; 2018, ch. 785, § 1; 2018, ch. 787, § 1; 2018, ch. 812, § 1; 2018, ch. 847, § 1; 2018, ch. 860, §§  1-3; 2018, ch. 912, § 1; 2018, ch. 950, §§ 1, 2; 2018, ch. 1010, §§ 1, 2; 2019, ch. 91, § 1; 2019, ch. 99, § 1; 2019, ch. 363, §§ 1-10; 2019, ch. 377, §§ 1, 2; 2019, ch. 435, §§ 2, 5; 2020, ch. 677, § 1; 2020, ch. 700, § 1; 2020, ch. 797, § 1; 2020, ch. 802, §§ 1–18.

Code Commission Notes.

Acts 1994, ch. 550, § 2 purported to add the following language after the second sentence in (18): “Provided, further, when the public street within the Beale Street National Historic Landmark District is closed to motor vehicular traffic.”

Compiler's Notes. For tables of population of Tennessee municipalities, and for U.S. decennial populations of Tennessee counties, see Volume 13 and its supplement.

Acts 2005, ch. 212, § 6 provided that:

“(a) The commissioner of revenue shall promulgate rules and regulations to effectuate the provisions of this act.

“(b) The commissioner of economic and community development shall promulgate rules and regulations to effectuate the provisions of this act.

“(c) The executive director of the alcoholic beverage commission shall promulgate rules and regulations to effectuate the provisions of this act.

“(d) All such rules and regulation shall be promulgated in accordance with the provisions of the Uniform Administrative Procedures Act, compiled in title 4, chapter 5.”

Acts 2009, ch. 168, § 2 provided that for purposes of §57-4-301, the annual taxes imposed for an historic inn shall be equal to the tax assessed for an historic mansion house site.

Pursuant to Article III, Section 18 of the Constitution of Tennessee, Acts 2014, ch. 843 took effect on April 28, 2014.

Acts 2018, ch. 755 contained two act sections 4. One of which amended this section and the other was the effective date provision.

Acts 2018 ch. 950, § 1 purported to amend the definition of “premier type tourist resort” with provisions exactly the same as the provisions by Acts 2018, ch. 860, § 3;  therefore, the amendments to this section by ch. 950, § 1 were not given effect.

Amendments. The 2018 amendment by ch. 680 added (WWWW) and (XXXX)  in the definition of “premier type tourist resort”.

The 2018 amendment by ch. 740 added (B) in the definition of “bed and breakfast establishment”; and added (YYYY), (ZZZZ), (AAAAA) and (BBBBB) in the definition of “premier type tourist resort”.

The 2018 amendment by ch. 755 added the definition of “festival operator”.

The 2018 amendment by ch. 785 added (CCCCC) in the definition of “premier type tourist resort”.

The 2018 amendment by ch. 787 added (DDDDD) in the definition of “premier type tourist resort”.

The 2018 amendment by ch. 812 added (P) in the definition of “urban park center”.

The 2018 amendment by ch. 847 added (EEEEE) and (FFFFF) in the definition of “premier type tourist resort”.

The 2018 amendment by ch. 860 added (GGGGG)-(IIIII) in the definition of “premiere type tourist resort”.

The 2018 amendment by ch. 912 added (JJJJJ) and (KKKKK) in the definition of “premiere type tourist resort”.

The 2018 amendment by ch. 950 added (LLLLL) in the definition of “premiere type tourist resort”.

The 2018 amendment by ch. 1010 added (C) and (D) in the definition of “Sports authority facility”.

The 2019 amendment by ch. 91 added (MMMMM) to the definition of  “premier type tourist resort”.

The 2019 amendment by ch. 99 added (E) to the definition of “sports authority facility”.

The 2019 amendment by ch. 363 added (NNNNN) through (RRRRR) to the definition of “premier type tourist resort”; added (I) and (J) to the definition of “community theater”; added (31)(B) to the definition of “retirement center”; added (L) to the definition of “restaurant”; and added (Q) to the definition of “urban park center”.

The 2019 amendment by ch. 377, in the definition of “premises”, in (A)(iii), deleted “a” preceding “national”, and inserted “historic”, inserted “, whether permanently or” in (A)(iv), and added (A)(v); and, in the definition of “restaurant” rewrote (C).

The 2019 amendment by ch. 435, in the definition of “premises”, added the fourth sentence in the undesignated paragraph of (A) and inserted “, or a manufacturer exercising the rights granted to it under §57-3-202(i)(1)” in (28)(C)(i).

The 2020 amendment by ch. 677 added (8)(N) in the definition of “club”.

The 2020 amendment by ch. 700 added (39)(R) in the definition of “urban park center”.

The 2020 amendment, by ch. 797, added (F) in the definition of “sports authority facility”.

The 2020 amendment by ch. 802, in (11), rewrote the former second sentence and deleted the former last sentence in the definition of “commercial passenger boat company”, of which the two sentences read: “Such company shall operate out of any county that has a population in excess of two hundred eighty-five thousand (285,000) or not less than eighty-three thousand three hundred (83,300) nor more than eighty-three thousand four hundred (83,400), according to the 1980 federal census or any subsequent federal census. No commercial passenger boat company licensed pursuant to this chapter shall sell any type of alcoholic beverage or beer while such boat is docked within the boundaries of any local government which has not approved the sale of alcoholic beverages pursuant to §57-4-103;”; added (13)(K) in the definition of “community theater”; added (27)(SSSSS) through  (MMMMMM), in the definition of “premier type tourist resort”; and added (34)(G) in the definition of “sports authority facility”.

Effective Dates. Acts 2018, ch. 680, § 3. April 12, 2018.

Acts 2018, ch. 740, § 5. April 18, 2018.

Acts 2018, ch. 755, § 4. April 18, 2018.

Acts 2018, ch. 785, § 2. April 20, 2018.

Acts 2018, ch. 787, § 2. April 20, 2018.

Acts 2018, ch. 812, § 2. July 1, 2018.

Acts 2018, ch. 847, § 2. April 26, 2018.

Acts 2018, ch. 860, § 4. May 3, 2018.

Acts 2018, ch. 912, § 2. May 1, 2018.

Acts 2018, ch. 950, § 3. May 15, 2018.

Acts 2018, ch. 1010, § 4. May 21, 2018.

Acts 2019, ch. 91, § 2. March 28, 2019.

Acts 2019, ch. 99, § 2. April 8,  2019.

Acts 2019, ch. 363, § 11. May 10, 2019.

Acts 2019, ch. 377, § 4. May 10, 2019.

Acts 2019, ch. 435, § 6. May 22, 2019.

Acts 2020, ch. 677, § 2, June 15, 2020.

Acts 2020, ch. 700, § 2, June 22, 2020.

Acts 2020, ch. 797, § 2. July 15, 2020.

Acts 2020, ch. 802, § 19. July 15, 2020.

Cross-References. Certain 1987 amendments to section inapplicable to certain counties, §57-4-104.

Limitation on selling or giving away alcoholic or malt beverages during certain hours, §57-4-203.

Law Reviews.

Selected Tennessee Legislation of 1983 (N. L. Resener, J. A. Whitson, K. J. Miller), 50 Tenn. L. Rev. 785 (1983).

Attorney General Opinions. Discrimination, OAG 89-73 (5/3/89).

Premiere type tourist resorts, licenses, OAG 94-81 (7/22/94).

Nashville and Davidson County arena within definition of “convention center,” OAG 95-016 (3/16/95).

Implementation of Tennessee River Resort District Act, OAG 05-161 (10/18/05).

Licensing and taxation of hotels selling alcohol for consumption on the premises. OAG 16-05, 2016 Tenn. AG LEXIS 3 (2/9/2016).

NOTES TO DECISIONS

1. Clubs.

A club which has a license for on-premises consumption of alcoholic beverages and beer from the alcoholic beverage commission under §§ T.C.A.57-4-101(b) [now §57-4-101(a)(2)] and57-4-102 does not have an absolute right to a beer permit from a city beer board. State ex rel. Amvets Post 27 v. Beer Bd. of Jellico, 717 S.W.2d 878, 1986 Tenn. LEXIS 794 (Tenn. 1986).

57-4-103. Applicability of chapter — Referendum — Form of question.

    1. This chapter shall be effective in any jurisdiction which authorizes the sale of alcoholic beverages for consumption on the premises in a referendum in the manner prescribed by § 57-3-106; provided, that, in addition to any other method authorized for holding an election pursuant to § 57-3-106, an election may be held for such sales upon adoption of a resolution by a two-thirds (2/3) vote of the legislative body of a county or municipality.
      1. Except as provided in subdivision (a)(2)(B), if the county election commission receives the necessary resolution or the petition requesting the referendum not less than forty five (45) days before the date on which an election is scheduled to be held, except for referenda scheduled to be held with the regular November general election which shall be held pursuant to § 2-3-204, the county election commission shall include the referendum question contained in subsection (b) on the ballot.
      2. In counties having a population of not less than eight hundred twenty-five thousand (825,000) nor more than eight hundred thirty thousand (830,000), according to the 1990 federal census or any subsequent federal census, if the county election commission receives the necessary petition requesting the referendum not less than thirty (30) days before the date on which an election is scheduled to be held, the county election commission shall include the referendum question contained in subsection (b) on the ballot.
    2. If any county has authorized the sale of alcoholic beverages for sale for consumption off premises pursuant to § 57-3-106, then any municipality wholly or partially within the boundaries of the county may conduct a referendum to authorize the sale of alcoholic beverages for consumption on the premises within the corporate boundaries of the municipality.
      1. If a municipality which has created a tourism development zone as defined in § 7-88-103 has not authorized the sale of alcoholic beverages for consumption on the premises in a referendum, then such municipality is authorized to conduct a referendum to authorize the sale of alcoholic beverages for consumption on the premises within the corporate boundaries of such municipality in accordance with this subdivision (a)(4). Notwithstanding § 57-3-106(c) and (f)(2), the county election commission shall place the question on the ballot of the November 2012, general election; provided, that all costs associated with the referendum election shall be paid for by the municipality to which this subdivision (a)(4) applies.
      2. The question submitted to the voters shall be in the following form for this election:

        For legal sale of alcoholic beverages for consumption on the premises in  (here insert name of political subdivision).

        Against legal sale alcoholic beverages for consumption on the premises in  (here insert name of political subdivision).

    3. When a municipality is located partly within a county that has a metropolitan form of government and the county has approved sales of alcoholic beverages for consumption on the premises and partly within another county that has not approved sales of alcoholic beverages for consumption on the premises, a referendum in the municipality shall be held only in that portion of the municipality located in the county that has not approved sales of alcoholic beverages for consumption on the premises. The referendum result shall not affect the sale of alcoholic beverages for consumption on the premises in the portion of the municipality located in the county having a metropolitan form of government.
    4. If any municipality located in any county having a population of not less than sixty-six thousand two hundred (66,200) nor more than sixty-six thousand three hundred (66,300), according to the 2010 federal census or any subsequent federal census, has authorized the sale of alcoholic beverages for consumption on the premises in a referendum in the manner prescribed by § 57-3-106, then any municipality having a population of not less than eight hundred fifty-five (855) nor more than eight hundred sixty-five (865) located within the boundaries of such county may conduct a referendum to authorize the sale of alcoholic beverages for consumption on the premises within the corporate boundaries of such municipality, notwithstanding the population requirements of § 57-3-101(a)(13) or § 57-3-106(b)(1). The referendum shall be conducted in the manner prescribed by § 57-3-106.
    5. If any municipality located in any county having a population of not less than twenty-nine thousand four hundred (29,400) nor more than twenty-nine thousand five hundred (29,500), according to the 2010 federal census or any subsequent federal census, has authorized the sale of alcoholic beverages for consumption on the premises in a referendum in the manner prescribed by § 57-3-106, then any municipality having a population of not less than five hundred thirty (530) nor more than five hundred thirty-nine (539), according to the 2010 federal census or any subsequent federal census, located within the boundaries of such county, may conduct a referendum to authorize the sale of alcoholic beverages for consumption on the premises within the corporate boundaries of such municipality, notwithstanding the population requirements of § 57-3-101(a)(14) or § 57-3-106(b)(1). The referendum shall be conducted in the manner prescribed by § 57-3-106.
    6. If any municipality located in any county having a population of not less than forty-one thousand eight hundred (41,800) nor more than forty-one thousand nine hundred (41,900), according to the 2010 federal census or any subsequent federal census, has authorized the sale of alcoholic beverages for consumption on the premises in a referendum in the manner prescribed by § 57-3-106, then any municipality having a population of not less than four hundred sixty (460) nor more than four hundred seventy (470), according to the 2010 federal census or any subsequent federal census, located within the boundaries of such county, may conduct a referendum to authorize the sale of alcoholic beverages for consumption on the premises within the corporate boundaries of such municipality, notwithstanding the population requirements of § 57-3-101(a)(14) or § 57-3-106(b)(1). The referendum must be conducted in the manner prescribed by § 57-3-106.
    7. If any municipality located in any county having a population of not less than sixty-six thousand two hundred (66,200) nor more than sixty-six thousand three hundred (66,300), according to the 2010 federal census or any subsequent federal census, has authorized the sale of alcoholic beverages for consumption on the premises in a referendum in the manner prescribed by § 57-3-106, then any municipality having a population of not less than three hundred ten (310) nor more than three hundred nineteen (319), according to the 2010 federal census or any subsequent federal census, located within the boundaries of such county, may conduct a referendum to authorize the sale of alcoholic beverages for consumption on the premises within the corporate boundaries of such municipality, notwithstanding the population requirements of § 57-3-101(a)(14) or § 57-3-106(b)(1). The referendum must be conducted in the manner prescribed by § 57-3-106.
  1. At any such election, the only question submitted to the voters shall be in the following form:

    For legal sale of alcoholic beverages for consumption on the premises in  (here insert name of political subdivision).

    Against legal sale of alcoholic beverages for consumption on the premises in  (here insert name of political subdivision).

Acts 1967, ch. 211, § 4; 1971, ch. 59, § 1; 1972, ch. 510, § 1; 1975, ch. 71, §§ 1, 2; 1977, ch. 445, § 1; modified; T.C.A., § 57-164; Acts 1984, ch. 877, § 1; 1987, ch. 456, § 2; 1988, ch. 551, § 1; 1992, ch. 711, § 1; 1993, ch. 518, §§ 18, 21; 1998, ch. 618, § 2; 2005, ch. 262, § 1; 2006, ch. 607, § 1; 2007, ch. 52, § 1; 2008, ch. 778, §§ 1, 2; 2011, ch. 447, §§ 9, 10; 2012, ch. 1035, §§ 1, 2; 2015, ch. 201, § 2; 2018, ch. 692, § 2; 2018, ch. 891, § 2.

Compiler's Notes.  For tables of population of Tennessee municipalities, and for U.S. decennial populations of Tennessee counties, see Volume 13 and its supplement.

Acts 2006, ch. 607, § 1 provided that, notwithstanding the provisions of §57-3-106(c) requiring elections to be held at the next regular election of the municipality, the county election commission shall place the question on the ballot of the November 2006 general election; provided, that the municipal governing body of the municipality to which subdivision (a)(4) applies calls for the referendum by July 15, 2006; and provided further, that all costs associated with that referendum election shall be paid for by the calling municipality.

Amendments. The 2018 amendment by ch. 692 added (a)(8).

The 2018 amendment by ch. 891 added (a)(9).

Effective Dates. Acts 2018, ch. 692 § 3. April 9, 2018.

Acts 2018, ch. 891, § 3. May 3, 2018.

Textbooks. Tennessee Jurisprudence, 6A Tenn. Juris., Constitutional Law, § 58.

Law Reviews.

Constitutional Law — Bemis Pentecostal Church v. State: The Validity of Tennessee's Campaign Disclosure Act, 18 Mem. St. U.L. Rev. 324 (1989).

Attorney General Opinions. The 2005 amendment requires that the municipality's governing body act no later than the thirtieth day after the act takes effect. OAG 05-143 (9/20/05).

Consumption of alcoholic beverages on the premises in unincorporated areas of a county, OAG 09-011 (2/3/09).

NOTES TO DECISIONS

1. Constitutionality.

The legislature could have had a reasonable justification for including only certain counties and municipalities within T.C.A. §57-4-103. Taylor v. Armentrout, 632 S.W.2d 107, 1981 Tenn. LEXIS 520 (Tenn. 1981).

57-4-104. Applicability of amendments to chapter.

The amendments to §§57-4-101,57-4-102,57-4-201,57-4-203 and57-4-301, made by Chapter 444 of the Public Acts of 1987, shall not apply in counties having a population of:

not less than  nor more than

11,700 11,800

24,590 24,600

34,800 34,900

67,300 67,400

according to the 1980 federal census or any subsequent federal census.

Acts 1987, ch. 444, § 12.

Compiler's Notes. For tables of U.S. decennial populations of Tennessee counties, see Volume 13 and its supplement.

Attorney General Opinions. Brown bagging of liquor, OAG 89-113 (9/5/89).

57-4-105. Serving wine at art galleries.

Any art gallery that does not sell food or beverages and that receives ninety percent (90%) of its revenue from the sale of artwork may serve wine to patrons of such art gallery without a charge. Such art gallery shall not serve wine to a patron who is intoxicated or believed to be intoxicated. Notwithstanding any other law to the contrary, any art gallery permitted to serve wine under this section shall not be required to pay any fees or taxes related to the privilege of serving wine.

Acts 2004, ch. 954, § 1.

Attorney General Opinions. Participation of the municipality as a whole is required in a referendum to approve liquor by the drink, OAG 06-113 (7/19/06).

57-4-106. Authority to serve or sell high alcohol content beer if authorized to serve or sell wine.

If a premises is authorized pursuant to this chapter to serve or sell wine only, the premises shall also be authorized to serve or sell high alcohol content beer, as defined in §57-3-101.

Acts 2006, ch. 733, § 7; 2014, ch. 861, § 8; 2019, ch. 435, § 3.

Effective Dates. The 2019 amendment substituted “serve or sell” for “sell” twice.

Effective Dates. Acts 2019, ch. 435, § 6. May 22, 2019.

57-4-107. Sales of alcoholic beverages for consumption on the premises in unincorporated areas of a county.

  1. Notwithstanding any other law to the contrary, sales of alcoholic beverages shall be permitted in unincorporated areas of a county that, by local option election in a county-wide referendum, approves the legal sale of alcoholic beverages for consumption on the premises, if that county has a charter form of government. This section shall apply to any such county that has already approved this referendum prior to June 5, 2009.
  2. In addition to the sales of alcoholic beverages authorized pursuant to subsection (a), notwithstanding any other law to the contrary, sales of alcoholic beverages shall be permitted in unincorporated areas of a county that approves the legal sale of alcoholic beverages for consumption on the premises by local option election called and held, in accordance with § 57-3-106(g), in portions of the county lying outside municipalities meeting the requirements of § 57-3-106(g)(1).
  3. If a county-wide referendum for the legal sale of alcoholic beverages for consumption on the premises is approved in a county, the sales of alcoholic beverages are permitted in any municipality that participated in the referendum regardless of the minimum population requirement for a municipality in § 57-3-101.

Acts 2009, ch. 351, § 1; 2011, ch. 411, § 1; 2011, ch. 447, § 1; 2017, ch. 147, § 20.

57-4-108. Production, storage and sale of infused alcohol products.

  1. As used in this title, “infusion” or “infused product” means any product created from the combining or mixing of an alcoholic beverage with nonalcoholic products or material over a sustained period of time, and at the time of the combination or mixing, the combination or mixture is not intended for immediate consumption.
    1. Notwithstanding any law to the contrary, an establishment licensed to sell alcoholic beverages for on-premises consumption pursuant to this part may produce, store and sell infusions pursuant to this section.
    2. The commission may promulgate rules and regulations regarding the production, storage, and sale of infusions by any licensee in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5.
  2. All alcoholic beverages used in the production of an infusion must be purchased from a licensed wholesaler.
  3. A batch of infused product shall not:
    1. Contain any added stimulant, drug, or illegal substance; provided, that “added stimulant”:
      1. Means any stimulant used in the production of the infusion that is not naturally contained in any food product or beverage used in the production of the infusion; and
      2. Includes, but is not limited to, caffeine, guarana, ginseng, and taurine and any product or beverage which includes stimulants that are not naturally included in the product or beverage, including, but not limited to, energy drinks;
    2. Be removed or transported from the licensed premises; or
    3. Be infused in, stored in, or dispensed from an original package of liquor or wine, or a container bearing an alcoholic beverage name brand.
  4. A batch of infused product shall be labeled with a list of each ingredient contained in the infusion.

Acts 2014, ch. 1001, § 9; 2017, ch. 338, §§ 1, 2.

Compiler's Notes. Former §57-4-108, concerning licenses that may continue to be issued for certain retail sales of alcoholic beverages for off-premises consumption, was transferred to §57-3-219 in 2011 by the code commission.

57-4-109. Tasting of alcohol by qualified student — Criteria — Definitions.

  1. A qualified student may taste alcoholic beverages, and the student, the authorized instructor, and the qualified academic institution in which the student is enrolled shall not be subject to criminal prosecution under § 57-5-301, § 57-4-203, § 39-15-404 or title 39, chapter 17, part 7, if all of the following criteria are met:
    1. The qualified student tastes the alcoholic beverage while enrolled in a qualified academic institution;
    2. The qualified academic institution has established a bachelor's degree program that is designed to train industry professionals in the production of fermented or distilled food or beverage products;
    3. The qualified student tastes the alcoholic beverage for educational purposes as part of the instruction in a course required for the bachelor's degree; and
    4. The alcoholic beverage remains in the control of an authorized instructor of the qualified academic institution who is at least twenty-one (21) years of age.
  2. Nothing in this section shall be construed to allow a student under twenty-one (21) years of age to receive any alcoholic beverage unless it is delivered as part of the student's curriculum requirements.
  3. A license or permit is not required to be held by a qualified academic institution engaging in the activities authorized by this section; provided, that an extra fee or charge is not imposed for the alcoholic beverages being tasted. Any tuition normally charged for a course shall not be considered an extra fee or charge.
  4. As used in this section:
    1. “Alcoholic beverage” includes beer as defined in § 57-5-101;
    2. “Qualified academic institution” means a public or private university accredited by a commission recognized by the United States department of education;
    3. “Qualified student” means a student enrolled in a fermentation science degree program at a qualified academic institution who has completed a minimum of sixty (60) hours of coursework; and
    4. “Taste” means to draw an alcoholic beverage into the mouth, but does not include swallowing or otherwise consuming the alcoholic beverage.

Acts 2016, ch. 709, § 1.

57-4-110. Interest of licensed manufacturer in licensed establishment.

  1. Notwithstanding any law or rule to the contrary, a manufacturer licensed under § 57-3-202 may have a direct or indirect interest in any establishment licensed pursuant to this part; provided, that such interest is held in an irrevocable trust by an independent trustee.
  2. [Deleted by 2019 amendment.]

Acts 2017, ch. 371, § 3; 2019, ch. 94, § 2.

Amendments. The 2019 amendment deleted (b), which read: “This section is deleted on July 1, 2019, and shall no longer be effective on and after such date.”

Effective Dates. Acts 2019, ch. 94, § 3. March 28, 2019.

Part 2 Administration, Enforcement, Prohibited Acts

57-4-201. Alcoholic beverage commission to administer law — Permits — Procedure — Rules and regulations.

    1. The commission created pursuant to chapter 1 of this title, has the authority to administer parts 1-3 of this chapter.
    2. The commission shall make regulations, not inconsistent with this chapter, for clarifying, interpreting, carrying out and enforcing the terms of this chapter, for ensuring the proper and orderly conduct of business by licensees, and for regulating all advertising of alcoholic beverages by licensees.
    3. Expiration of the licenses granted pursuant to this chapter shall be as provided by § 57-3-213(a), (b) and (c).
    4. Further, all the provisions of §§ 57-3-214 and 57-3-404(a) and (b), shall apply to licensees under this chapter.
    1. Any person, firm or corporation owning any hotel, convention center, premier type tourist resort, restaurant, club, historic performing arts center, community theater, theater, historic interpretive center, urban park center, zoological institution, public aquarium, museum, historic mansion house site or commercial passenger boat company as defined in § 57-4-102, desiring to sell wine or other alcoholic beverages for consumption on its premises where food may be served, shall make application to the commission in duplicate on forms furnished by the commission for a permit so to do. The commission is authorized to issue a limited permit to a restaurant making application under § 57-4-101(c)(1), authorizing such restaurant to serve wine but not any other alcoholic beverages. Notwithstanding § 57-3-803, the commission is authorized to issue a limited license to a retail food store authorizing a restaurant within a retail food store to serve wine but no other alcoholic beverages within a designated area within the retail food store. A retail food store may receive a restaurant license under this section without complying with seating requirements or requirements regarding minimum food sales for a wine only licensee as long as the retail food store provides prepared food for sale to customers and pays a license fee equal to the license fee in § 57-4-301(b)(1)(R)(vii). Any person, firm or corporation desiring to sell wine or other alcoholic beverages for consumption on the premises of any terminal building of a commercial air carrier airport as defined in § 57-4-102, or of a commercial airline travel club as defined in § 57-4-102, or of a sports authority facility as defined in § 57-4-102, shall make application to the commission in duplicate on forms furnished by the commission for a permit to do so. No person, firm or corporation shall be authorized to engage in making such sales until the permit therefor is approved and issued by the commission.
    2. No license may be granted hereunder to any establishment when any person, firm or corporation having at least a five percent (5%) ownership interest in the establishment has been convicted within ten (10) years prior to the application for a license hereunder of a violation of the laws governing the sale or manufacture of alcoholic beverages or of any felony.
      1. If a license has been issued to an establishment as a restaurant pursuant to § 57-4-102 and such licensee desires to exchange its license as a restaurant for a license as a limited service restaurant, the commission may issue the establishment a license as a limited service restaurant in accordance with Chapter 1133 of the Public Acts of 2010, upon the filing of an application by the licensee for the issuance of a license as a limited service restaurant, together with the payment of the application fee required pursuant to § 57-4-301(b)(1) and a sworn statement indicating the gross revenue from the previous year derived from food sales and the gross revenue derived from liquor sales, and, if approved, paying the license fee, or the prorated difference between its restaurant license fee and the license fee, if applicable, required pursuant to § 57-4-301(b)(1)(W). Such statement shall determine the appropriate license fee to be paid. It is the intent that on-premises licenses permitting the sale of alcoholic beverages at restaurants shall not be required to fulfill any other requirements in order to be issued a license to serve alcoholic beverages as a limited service restaurant.
      2. Should the commission find that any restaurant fails to satisfy the requirements of § 57-4-102(30)(A) but would otherwise qualify as a limited service restaurant, such establishment shall be permitted thirty (30) days following such finding to elect to exchange its license for a limited service restaurant license upon paying to the commission a new application fee and the prorated difference between its restaurant license fee and the license fee required pursuant to § 57-4-301(b)(1)(X).
      3. For purposes of exchanging a restaurant license as a limited service restaurant license, if the licensee had been issued a license by the alcoholic beverage commission as a restaurant, the initial license fee shall be based on the percentage of gross sales the establishment generated from the service of meals during the year previous to the year the license as a limited service restaurant is requested.
      4. Any establishment applying for a renewal of its license shall submit a sworn statement indicating the gross revenue from the previous year derived from food sales and the gross revenue derived from liquor sales. Such statement shall determine the license fee to be paid pursuant to § 57-4-301(b)(1)(X).
        1. If a license is requested by an applicant who does not hold an existing license as a restaurant, it shall be a rebuttable presumption that the amount of gross sales from prepared food will be between zero percent (0%) but not more than fifteen percent (15%). An applicant may rebut the presumption by including with the application a business plan which indicates the gross sales from prepared food will be higher than fifteen percent (15%). The commission shall advise each applicant of the applicant's right to include with the application a business plan which includes a projection of the amount of gross sales of prepared food and in such case, the commission shall assess the appropriate license fee based on such projection.
        2. Any establishment applying for a renewal of its license as a limited service restaurant shall submit a sworn statement indicating the percentage of gross revenue for the previous year derived from food sales and the gross revenue derived from sales of alcoholic beverages. If the statement indicates the gross sales from prepared food was higher than the initial projection or higher than the amount actually sold in the previous year, requiring the payment of a lower licensure fee, the commission shall refund the difference to the licensee within thirty (30) days of the date the statement is filed with the commission. If the statement indicates the gross sales from prepared food was less than the projection or than the amount actually sold in the previous year, requiring the payment of a higher licensure fee, the commission shall require the licensee to pay to the commission the difference between the licensure fee actually paid at the time the renewal fee is paid.
    1. Any club seeking to obtain a license under this chapter shall, as a condition precedent to its obtaining such license, cause to be printed in a newspaper of general circulation in the county or municipality where such club is located a public notice that the club is seeking a license from the commission to sell liquor by the drink. The notice shall include the name and address of each officer of such club, the address of the location of the club, an indication of the number of regular dues paying members, and the name and address of the individual to be in actual charge of the sale of alcoholic beverages. The commission is authorized to promulgate rules and regulations further establishing the content and format of such notice.
    2. Any club seeking to obtain a license under this chapter shall submit with its application a certificate signed by the county mayor or chair of the county commission in which the club is located if outside the corporate limits of a municipality or, if within a municipality, from the mayor or a majority of the commission, city council or legislative body of the municipality by whatsoever name designated, or if the municipality has no mayor, from the highest executive of the municipality. The certificate must state that the persons to be in actual charge of the sale of alcoholic beverages are of good moral character and are personally known to the official or officials signing the certificate, or that such official or officials have made careful investigation of the person's or persons' general character, and from such investigation it is found to be good. In the event the club is unable to obtain such certificate from the proper certifying official, the applicant shall file with the commission with the applicant's application a petition in duplicate stating that the applicant has made application to the certifying official for the certificate and same has been wrongfully, illegally or arbitrarily refused, and otherwise setting forth reasons why the applicant is entitled to such license, notwithstanding the refusal aforementioned, and the manner in which the refusal is wrongful, illegal or arbitrary. The commission shall hold a hearing to determine whether the license shall be issued. The hearing shall be conducted pursuant to the Uniform Administrative Procedures Act, compiled in title 4, chapter 5. The commission shall make such order granting or refusing the license as, in its discretion, the entire record at such hearing shall justify, and such order shall be effective from its date.
    3. This subsection (c) shall not be applicable to any club having a license on May 1, 1980, or to the renewal of a license for such club.
  1. The commission shall have authority to require an applicant, under oath, to disclose the following information:
    1. The name of the applicant;
    2. Location of the hotel, convention center, premier type tourist resort, restaurant, club, historic performing arts center, community theater, theater, historic interpretive center, urban park center, zoological institution, public aquarium, museum, historic mansion house site, terminal building of a commercial air carrier airport, commercial airline travel club, commercial passenger boat company, or sports authority facility;
    3. Sufficient data to establish that applicant meets the requirements of §§ 57-3-110, 57-4-101, 57-4-102;
    4. The true owner thereof;
    5. That neither the applicant nor any person to be employed in the serving of beverages authorized herein shall be a person who has been convicted of any violation of the laws against possession, sale, manufacture or transportation of intoxicating liquor or of any felony within eight (8) years prior to the application for a license hereunder;
    6. That the manager and/or operator of the hotel, convention center, premier type tourist resort, restaurant, club, zoological institution, public aquarium, museum, community theater, theater, historic interpretive center, historic performing arts center, establishment in a terminal building of a commercial air carrier airport, commercial airline travel club, commercial passenger boat company, or sports authority facility seeking such permit is of good moral character; and
    7. Such other relevant information as may be required by the commission.
  2. The commission is authorized to promulgate rules and regulations governing its procedure but it shall consider all applications promptly.
    1. Notwithstanding any provision of this title to the contrary, an entity that holds a license to manufacture high alcohol content beer issued by the commission shall be authorized to sell on its premises beer or high alcohol content beer which has been brewed on such premises, for consumption on its premises without the requirement of an additional license under this part. Any sale of high alcohol content beer by such manufacturer or brewery shall be subject to the tax imposed by § 57-4-301(c).
    2. Any manufacturer or brewery electing to effect sales of beer or high alcohol content beer for consumption on its premises must advise the commission as to the designated area where such sales will occur and shall be subject to the conditions of § 57-4-203 for such sales, except such manufacturer or brewery may effect sales for off-premises consumption pursuant to § 57-3-202(h).
  3. Notwithstanding any law or rule to the contrary, upon collection of a fifty-dollar licensing fee, the commission may issue temporary licenses not to exceed thirty (30) days to any new applicant for a license issued pursuant to this chapter.

Acts 1967, ch. 211, § 1; 1970, ch. 451, § 1; 1972, ch. 682, § 3; 1972, ch. 756, § 4; 1979, ch. 401, § 3; T.C.A., § 57-154; Acts 1980, ch. 895, § 2; impl. am. Acts 1980, ch. 898, § 1; Acts 1981, ch. 232, § 1; 1981, ch. 447, § 1; 1981, ch. 475, §§ 3, 4; 1983, ch. 52, §§ 3-5; 1983, ch. 300, § 4; 1983, ch. 469, §§ 3-5; 1984, ch. 975, §§ 3-5; 1986, ch. 643, § 1; 1986, ch. 899, §§ 4-6; 1987, ch. 444, §§ 5-7; 1991, ch. 219, § 3; 1992, ch. 674, §§ 3-5; 1998, ch. 939, §§ 4, 5; 2001, ch. 74, § 3; 2003, ch. 90, § 2; 2010, ch. 1133, § 5; 2011, ch. 448, § 14; 2012, ch. 947, § 1; 2014, ch. 861, § 24; 2014, ch. 915, § 2; 2015, ch. 391, § 1; 2016, ch. 830, § 2.

Compiler's Notes. Acts 1983, ch. 300, § 6 provided that the amendment by that act inserting “historic mansion house site” shall apply only to counties having a population of 450,000 or greater according to the 1980 federal census or any subsequent census.

Acts 2003, ch. 90, § 2 directed the code commission to change all references from “county executive” to “county mayor” and to include all such changes in supplements and replacement volumes for the Tennessee Code Annotated.

For tables of U.S. decennial populations of Tennessee counties, see Volume 13 and its supplement.

Cross-References. Certain 1987 amendments to section inapplicable to certain counties, §57-4-104.

Law Reviews.

Selected Tennessee Legislation of 1986, 54 Tenn. L. Rev. 457 (1987).

Attorney General Opinions. As a municipal corporation the city of Clarksville cannot obtain a license to sell liquor by the drink at any location or sell alcoholic beverages or beer to either private party lessees and guests or to the general public; no city employee or nonprofit corporation created or controlled by the city may obtain a permit to sell liquor by the drink or obtain a beer permit on behalf of the city.  OAG 14-03, 2014 Tenn. AG LEXIS 5 (1/9/14)

Licensing and taxation of hotels selling alcohol for consumption on the premises.  OAG 16-05, 2016 Tenn. AG LEXIS 3 (2/9/2016).

57-4-202. Revocation or suspension of permits — Pilot project concerning local and municipal beer boards.

  1. The commission shall have authority to revoke or suspend any permit granted herein for the violations of any applicable provision of this chapter, and any person aggrieved by the action of this commission in revoking or suspending a permit, or in refusing to grant a permit, may have such action reviewed as provided by the Uniform Administrative Procedures Act, compiled in title 4, chapter 5.
    1. As a pilot project to terminate July 1, 2014, unless extended by the general assembly, if, pursuant to § 57-5-108(n), a local or municipal beer board responsible for controlling the sale of beer or malt beverages within any county included within subsection (d), sends a certified letter, return receipt requested to the executive director of the alcoholic beverage commission providing notice that the beer board has suspended or revoked the permit of an establishment for a violation of chapter 5 of this title, upon receipt of the certified letter, the executive director of the alcoholic beverage commission shall:
      1. Schedule a show-cause hearing for the next regularly scheduled meeting of the commission to be held at least fourteen (14) days following the date the executive director receives the certified letter to provide an opportunity for the licensee to appear and show cause why the license to sell alcoholic beverages on the premises should not be suspended or revoked for violations of this chapter based on actions taken by the beer board pursuant to § 57-5-108(n); and
      2. Notify the individual or business entity, which is listed as the licensee at the same location where the beer permit had been suspended or revoked, of the date and time of the show-cause hearing.
    2. If the alcoholic beverage commission finds that a sufficient violation or violations of this chapter have occurred at such location, then the commission shall suspend or revoke the license of the establishment to the same extent and at least for the same period of time as the beer board has suspended or revoked the permit of the establishment pursuant to § 57-5-108(n).
    3. If the licensee fails to appear or decides to surrender the license to the alcoholic beverage commission in lieu of appearing at the show-cause hearing, the license shall be suspended or revoked by the commission, and no license to sell alcoholic beverages on the premises shall be issued by the commission to any person for the location where the beer board suspended or revoked the license or permit pursuant to § 57-5-108(n) for the period of time included in the decision of the beer board.
    4. Notwithstanding § 57-1-201(b)(1), the alcoholic beverage commission shall not have the authority to and shall not issue a fine in lieu of suspending or revoking the license of an establishment whose license had been suspended or revoked by the beer board pursuant to § 57-5-108(n).
    5. The decision of the alcoholic beverage commission is final, and any party aggrieved thereby may appeal the decision of the commission in accordance with the Uniform Administrative Procedures Act.
      1. As a pilot project to terminate July 1, 2014, unless extended by the general assembly, when the alcoholic beverage commission suspends the license to sell alcoholic beverages on the premises at any establishment within any county included within subsection (d), for any violation or violations, as defined in this chapter, the commission is authorized to notify the local or municipal beer board responsible for controlling the sale of beer or malt beverages within such county by certified mail, return receipt requested, of the action taken by the commission. Such notice shall include the record of evidence and the determination made by the alcohol beverage commission in suspending or revoking the license.
      2. Upon receipt of such notice, the local or municipal beer board shall take the actions required pursuant to § 57-5-108(o) with respect to violations as defined in chapter 5 of this title related to the permit for the sale of beer or malt beverages for consumption on the premises at the location where the violation of this chapter occurred.
    1. The suspension or revocation decision of the commission made pursuant to subdivision (c)(1)(A) is final, and any party aggrieved thereby may appeal the decision of the commission in accordance with the Uniform Administrative Procedures Act.
  2. The pilot project established by subsections (b) and (c) shall only apply in counties having a population, according to the 2010 federal census or any subsequent federal census, of:

    not less than  nor more than

    6,800 6,900

    19,100 19,150

    22,600 22,675

    32,200 32,300

    35,600 35,700

    51,400 51,500

    56,800 56,900

    336,400 336,500

    432,200 432,300

  3. [Deleted by 2020 amendment.]

Acts 1967, ch. 211, § 1; 1979, ch. 374, §§ 1, 2; T.C.A., §§ 57-152, 57-155; Acts 2012, ch. 881, § 2; 2013, ch. 236, § 68; 2020, ch. 711, § 10.

Compiler's Notes. For tables of U.S. decennial populations of Tennessee counties, see Volume 13 and its supplement.

Amendments. The 2020 amendment deleted former (e) which read: “(e) The executive director of the alcoholic beverage commission shall file a report with the state and local government committee of the senate and the state government committee of the house of representatives no later than March 15, 2014, on the success or failure of the pilot project created pursuant to subsections (b) and (c) and §57-5-108(n) and (o), together with the executive director’s recommendations as to whether the pilot project should be extended, continued or terminated and recommendations for legislative action, if any are required, based on the executive director’s findings. The report, at a minimum, shall contain:“(1) The number of permits or licenses suspended or revoked; “(2) Whether such suspensions or revocations were appealed; “(3) The extent to which a court upheld or overturned such suspensions or revocations; “(4) Whether licensees or permittees surrendered their license or permit in lieu of having a license suspended or revoked;“(5) Whether a new license or permit was issued to the same person or business entity for a new or the same location, if such person or business entity had previously surrendered a license or permit in accordance with subdivision (e)(4); and“(6) The effect the implementation of the pilot project had on the activities of the establishments holding licenses and permits issued by the alcoholic beverage commission or the local or municipal beer board responsible for controlling the sale of beer within the locality impacted by the pilot project.”

Effective Dates. Acts 2020, ch. 711, § 11, June 15, 2020.

57-4-203. Prohibited practices — Hours of sale — Authority of commission — Penalties.

  1. Exterior Signs.
    1. No licensee shall place any sign of any description on the exterior of the licensee's hotel, convention center, premier type tourist resort, restaurant, or club which is not in compliance with all duly adopted local ordinances relative to such exterior signs.
    2. A violation of subdivision (a)(1) is a Class C misdemeanor.
  2. Sales to Minors Prohibited.
      1. Any licensee or other person who sells, furnishes, disposes of, gives, or causes to be sold, furnished, disposed of, or given, any alcoholic beverage to any person under twenty-one (21) years of age commits a Class A misdemeanor and shall be punished in accordance with § 39-15-404, as well as any other applicable section.
      2. Any licensee engaging in business regulated hereunder or any employee thereof who sells, furnishes, disposes of, gives, or causes to be sold, furnished, disposed of, or given any beer or malt beverage as defined in § 57-6-102 to any person under twenty-one (21) years of age is guilty of a Class A misdemeanor.
      3. The commission may, upon finding that a licensee has violated subdivision (b)(1)(A) or (b)(1)(B) two (2) or more times during any two-year period, and for good cause shown, fine the licensee not more than ten thousand dollars ($10,000) and require retraining of all employees of the licensee under the supervision of the commission in lieu of suspending or revoking the license of the licensee.
    1. Any person under the age of twenty-one (21) years who:
      1. Purchases, attempts to purchase, receives, or has in such person's possession in any public place, any alcoholic beverage, commits a Class A misdemeanor; or
      2. Knowingly makes a false statement or exhibits false identification to the effect that the licensee is twenty-one (21) years of age or older to any person engaged in the sale of alcoholic beverages for the purpose of purchasing or obtaining the same commits a Class A misdemeanor.
        1. If a person violating this subdivision (b)(2)(B) is less than eighteen (18) years of age, such person shall be punished by a fine of fifty dollars ($50.00) or not less than twenty (20) hours of community service work, which fine or penalty shall not be suspended or waived. The fine imposed by this subdivision (b)(2)(B)(i) shall apply regardless of whether the violator cooperates with law enforcement officers by telling them the place the alcohol was purchased or obtained or from whom it was purchased or obtained.
        2. If the person violating this subdivision (b)(2)(B) is eighteen (18) years of age or older but less than twenty-one (21) years of age, such person shall be punished by a fine of not less than fifty dollars ($50.00) nor more than two hundred dollars ($200) or by imprisonment in the local jail or workhouse for not less than five (5) days nor more than thirty (30) days. The penalties imposed by this subdivision (b)(2)(B)(ii) apply regardless of whether the violator cooperates with law enforcement officers by telling them the place the alcohol was purchased or obtained or from whom it was purchased or obtained.
        1. In addition to any criminal penalty established by this section, a court in which a person younger than twenty-one (21) years of age is convicted of the purchase, attempt to purchase or possession of alcoholic beverages, or the making of a false statement or exhibition of false identification for the purpose of purchasing or obtaining alcoholic beverages in violation of this section, shall prepare and send to the department of safety, driver control division, within five (5) working days of the conviction an order of denial of driving privileges for the offender.
        2. The court and the department of safety shall follow the same procedures and utilize the same sanctions and costs for an offender younger than twenty-one (21) years of age but eighteen (18) years of age or older as provided in title 55, chapter 10, part 7, for offenders younger than eighteen (18) years of age but thirteen (13) years of age or older.
    2. This chapter does not prohibit any person eighteen (18) years of age or older from selling, transporting, possessing or dispensing alcoholic beverages in the course of such person's employment.
  3. Other Prohibited Sales.
    1. It is unlawful for any licensee or other person to sell or furnish any alcoholic beverage to any person who is known to be insane or mentally defective, or to any person who is visibly intoxicated, or to any person who is known to habitually drink alcoholic beverages to excess, or to any person who is known to be an habitual user of narcotics or other habit-forming drugs.
    2. A violation of subdivision (c)(1) is a Class A misdemeanor.
  4. Hours of Sale.
    1. Except as provided in subdivision (d)(5), hotels, clubs, zoological institutions, public aquariums, museums, motels, convention centers, restaurants, community theaters, theater, historic interpretive centers, sports authority facilities, and urban park centers, licensed as provided herein to sell alcoholic beverages, and/or malt beverages, and/or wine may not sell, or give away, alcoholic beverages and/or malt beverages and/or wine between the hours of three o'clock a.m. (3:00 a.m.) and eight o'clock a.m. (8:00 a.m.) on weekdays, or between the hours of three o'clock a.m. (3:00 a.m.) and twelve o'clock (12:00) noon on Sundays.
    2. Except as provided in subdivision (d)(5), hotels, motels and restaurants, licensed under § 57-4-102(27)(B) may not sell or give away alcoholic beverages, and/or malt beverages and/or wine between the hours of one o'clock a.m. (1:00 a.m.) and eight o'clock a.m. (8:00 a.m.) on weekdays or between the hours of one o'clock a.m. (1:00 a.m.) and twelve o'clock (12:00) noon on Sundays.
    3. Except as provided in subdivision (d)(5), establishments in a terminal building of a commercial air carrier airport and commercial airline travel clubs licensed as provided herein to sell alcoholic beverages, and/or malt beverages, and/or wine, may not sell, or give away, alcoholic beverages and/or malt beverages and/or wine between the hours of three o'clock a.m. (3:00 a.m.) and eight o'clock a.m. (8:00 a.m.) on weekdays or between the hours of three o'clock a.m. (3:00 a.m.) and twelve o'clock noon (12:00) on Sundays.
    4. Except as provided in subdivision (d)(5), licensees under § 57-4-102(28) may not sell or give away alcoholic beverages and/or malt beverages and/or wine between the hours of five o'clock a.m. (5:00 a.m.) and eight o'clock a.m. (8:00 a.m.) on weekdays or between the hours of five o'clock a.m. (5:00 a.m.) and twelve o'clock (12:00) noon on Sundays.
    5. The commission is authorized to extend the hours of sale in the jurisdictions which have approved the sale of liquor by the drink by referendum; provided, however, that such extension of hours as well as § 57-5-301(b)(5) shall apply to Sunday sales of beer within the area of the county outside a municipality which approves liquor by the drink by referendum unless the county legislative body by a two-thirds (2/3) vote sets the hours for Sunday sales of beer in accordance with § 57-5-301(b)(1) to apply within such area. Upon petition by any licensee or group of licensees under this chapter, the commission may, after conducting a rule-making hearing pursuant to the Uniform Administrative Procedures Act, compiled in title 4, chapter 5, adopt rules expanding the hours during which it is legal to sell or give away alcoholic beverages, malt beverages and wine, pursuant to this chapter. The commission is hereby directed to consider such factors as the hours of sales in contiguous states and the need to compete with jurisdictions elsewhere in the country for convention and tourism business. The governing body of any municipality or metropolitan government which has approved liquor by the drink by referendum may, at any time, opt out of any extension of hours adopted under this section by passage of a resolution. Further, any municipality or metropolitan government that has opted out may, at a later date, opt in by passage of a resolution.
    6. Except as provided in subdivision (d)(5), licensees under § 57-4-102(30)(J) and (K) shall not sell or give away alcoholic beverages, malt beverages, or wine between the hours of three o'clock a.m. (3:00 a.m.) and four o'clock a.m. (4:00 a.m.).
  5. Restrictions on Sealed or Unsealed Packages, or Gifts.
    1. No licensee hereunder shall sell any wine or other alcoholic beverage in any sealed or unsealed package to any patrons or customers for consumption off its premises. Notwithstanding the foregoing, a restaurant licensed under this chapter may permit a customer who purchases an unsealed package of wine in conjunction with a food purchase and consumes a portion of the wine on the premises to remove the partially filled package from the premises. In addition, a licensee holding a license issued pursuant to §§ 57-4-102(14) and (34) may sell and distribute alcoholic beverages and wine in unsealed containers to the occupant of a suite located within a sports authority facility or a convention center; provided, that such occupant is at least twenty-one (21) years of age, is authorized by the lessee of the suite to receive such alcoholic beverages and wine, and the alcoholic beverage or wine is not removed from the sports authority facility or convention center.
    2. A licensee shall not give away any such sealed package or any drink of wine or alcoholic beverage to any patron or customer; provided, that:
      1. A hotel licensed under this chapter may include as part of the accommodations to a registered guest the provision of up to four (4) seven hundred fifty milliliter (750 ml.) or smaller complimentary sealed packages of wine or alcoholic beverages for which all applicable taxes have been paid; and
      2. A licensee may serve a sample of wine to a patron or customer that does not exceed one ounce (1 oz.).
    3. The tax required by chapter 4, part 3 of this title shall be paid upon the normal sales price of any such packages of wines provided under this subsection (e).
    4. A restaurant or limited service restaurant may sell beer for consumption off premises upon meeting the requirements of § 57-5-101(c)(1)(B).
  6. Method of Sale.  Sales of wine and alcoholic beverages by licensees hereunder shall be conducted in the same manner as the sale of food is regularly conducted by such hotels, convention centers, premier type tourist resorts, restaurants, or clubs, except that no curb service of such beverages is lawful.
  7. Ownership of Alcoholic Beverages Sold.
    1. It is a Class C misdemeanor for any licensee hereunder to sell or serve on the licensee's premises any wine or other alcoholic beverage unless such beverage is owned outright by the licensee.
    2. It is unlawful for any person, firm or corporation to sell wine or other alcoholic beverage as authorized herein without complying with the applicable provisions of this chapter.
    3. This subsection (g) shall not apply to events held by special occasion licensees who receive donated alcoholic beverages or beer.
  8. Restrictions on Employment.  No entity holding a license issued pursuant to § 57-4-101 shall employ any person in the serving of beer, wine or other alcoholic beverages who does not possess a server permit from the commission. It is made the duty of the licensee to see that each person dispensing or serving alcoholic beverages, wine or beer in the licensee's establishment possesses such a permit, which permit must be on the person of such employee or on the premises of the licensed establishment and subject to inspection by the commission or its duly authorized agent when the employee is engaged in the performance of that employee's duties for the licensee.
  9. Premises Must Be Licensed — Exception for Conventions, Social Gatherings and Catered Events.
      1. Except with respect to a caterer licensed under this chapter, it is unlawful for any person, firm, corporation, partnership, or association to allow the dispensing of alcoholic beverages except sacramental wines and beer, in any establishment unless such establishment is licensed under this title.
      2. A violation of subdivision (i)(1)(A) is a Class B misdemeanor.
    1. Bona fide conventions or meetings, however, may bring their own alcoholic beverages onto the licensed premises if the same beverages are served to delegates or guests without cost. All other provisions of this chapter shall be applicable to such premises. This section has no application to social gatherings in a private home or a private place which is not of a commercial nature or where goods or services may be purchased or sold or any charge or rent or other thing of value is exchanged for the use thereof, excepting it be for sleeping quarters. Nothing herein shall preclude the serving of alcoholic beverages to guests without cost in rooms or suites or banquet rooms of a hotel or club licensed pursuant to this chapter.
    2. A restaurant, hotel, or caterer holding a valid catering license may sell or distribute wine, beer, and other alcoholic beverages at social or commercial events, catered by the restaurant, hotel, or caterer where the restaurant, hotel, or caterer is providing food service at such event; provided, that the restaurant, hotel, or caterer shall notify the commission as to the time, location and duration of the catered event before the commencement of the event. Nothing in this subdivision (i)(3) or chapter shall be interpreted to require a person who holds a valid caterer license under this chapter to also be licensed as a restaurant or hotel.
  10. Penalties Invoked.
    1. Any person, firm or corporation who violates any provision of parts 1 and 2 of this chapter is guilty of a misdemeanor, and, upon conviction thereof, shall be fined not less than five hundred dollars ($500) nor more than one thousand dollars ($1,000); and, in the discretion of the court, imprisoned not less than thirty (30) days, nor more than six (6) months, and each violation constitutes a separate offense.
    2. Any person, firm or corporation who shall sell wine or other alcoholic beverages for consumption on its premises except as authorized by parts 1 and 2 of this chapter is guilty of a misdemeanor and punishable as provided in this section.
    3. Upon conviction of a second offense under this chapter, the permit of any licensee so convicted shall be automatically and permanently revoked.
    4. Upon the second conviction of any person, firm, or corporation for violation of subdivision (b)(1), such person, firm, or corporation is guilty of a Class E felony. In addition, upon the second such conviction, the permit of such licensee shall be automatically and permanently revoked regardless of any other punishment actually imposed.
  11. Purchases by Special Occasion Licensees.
    1. No charitable, nonprofit or political organization possessing a special occasion license shall purchase for sale or distribution under such license any alcoholic beverages from any source other than a licensee under § 57-3-204. This subsection (k) shall not apply to homemade wine made in the Swiss tradition by a member or members of a special occasion permit holder issued a license pursuant to § 57-4-102(33)(D). The member may supply the wine notwithstanding the limitations of § 57-3-207(e).
    2. A charitable, nonprofit, or political organization, or any representative thereof, may accept donations of alcoholic beverages and beer from any licensee holding a license issued pursuant to § 57-3-202, § 57-3-203, § 57-3-204, § 57-3-207, § 57-3-605 or § 57-4-101; provided, that the charitable, nonprofit, or political organization serves or sells such alcoholic beverages and beer at an event conducted by the charitable, nonprofit, or political organization as a special occasion licensee.
  12. Commercial Airline Travel Clubs.  A commercial airline travel club licensed under this chapter may provide complimentary drinks of wine and alcoholic beverages to its patrons, customers, and guests. Such commercial airline travel club must have a separate area, other than the gate and ticket areas, designated as a club area for use by its members. The tax required by part 3 of this chapter shall be paid upon the normal sales price of all such complimentary drinks of wine and alcoholic beverages provided under this subsection (l ).
  13. Discounts.  Nothing in this chapter shall prohibit a licensee from offering a discount in such manner as the licensee deems appropriate as long as the discount being offered is not below the cost paid by the licensee to purchase the alcoholic beverages from the retailer.
  14. Restrictions on Certain Limited Service Restaurant Licensees.  Any establishment holding a license pursuant to § 57-4-301(b)(1)(W)(iv) shall not permit alcoholic beverages to be sold on sidewalks, streets, or alleys.
  15. Extension of Credit by Wholesalers to Retailers.
    1. No wholesaler licensed under § 57-3-203 shall be permitted to extend credit of any retailer licensed under § 57-4-101 unless pursuant to this subsection (o). All amounts due to any wholesaler from all sales to such retailers shall be due upon delivery of the product.
    2. Notwithstanding the limitations of subdivision (o)(1), wholesalers licensed under § 57-3-203 may extend credit to a retailer licensed under § 57-4-101 for a period not to exceed ten (10) days from the date of the delivery of the product; provided, the payment is effected by electronic funds transfer or escrow prepayment.
    3. It shall create a rebuttable presumption that a retailer licensed under § 57-4-101 is not financially responsible under § 57-3-104(c)(10) if the retailer fails to satisfy its obligations to any wholesaler in accordance with each wholesaler's credit terms twice within a twelve-month period. Upon being advised by any wholesaler licensed under § 57-3-203 twice within a twelve-month period that a retailer has failed to comply with the applicable credit terms, the commission shall set a hearing as soon as practicable at its next available meeting to determine whether the retailer can rebut the presumption created by this subdivision (o)(3). Upon a finding that the retailer is not financially responsible under § 57-3-104(c)(10), the commission may issue a fine, suspend or revoke the license, or make any other order it deems appropriate.
    4. Notwithstanding any law to the contrary, the commission is authorized to issue a citation in an amount not to exceed five hundred dollars ($500) per violation against any retailer licensed under § 57-4-101 if, upon investigation, the commission finds that the retailer has failed to satisfy its obligations to any wholesaler in accordance with each wholesaler's credit terms twice within a twelve-month period.

Acts 1967, ch. 211, § 1; 1969, ch. 336, § 1; 1970, ch. 451, § 2; 1971, ch. 224, § 1; 1972, ch. 612, § 9; 1972, ch. 682, § 4; 1972, ch. 756, § 5; 1973, ch. 397; 1975, ch. 277, § 1; 1975, ch. 340, § 1; 1979, ch. 256, § 1; 1979, ch. 377, § 1; 1979, ch. 401, § 4; 1979, ch. 413, §§ 3, 4; T.C.A., § 57-156; Acts 1980, ch. 771, § 3; 1981, ch. 153, § 1; 1981, ch. 404, § 3; 1982, ch. 877, §§ 2, 3; 1983, ch. 454, §§ 2, 3; 1983, ch. 469, §§ 6, 7; 1984, ch. 569, § 1; 1984, ch. 975, §§ 6, 7; 1984, ch. 1006, § 3; 1986, ch. 697, § 1; 1986, ch. 788, § 1; 1986, ch. 899, §§ 7, 8; 1987, ch. 96, § 1; 1987, ch. 444, §§ 1, 8, 9; 1988, ch. 944, § 1; 1989, ch. 427, § 1; 1989, ch. 591, §§ 63, 111, 112, 113; 1991, ch. 407, §§ 1, 2; 1991, ch. 473, §§ 2, 3; 1992, ch. 674, §§ 6, 7; 1994, ch. 550, § 1; 1995, ch. 93, § 1; 1995, ch. 214, § 2; 1995, ch. 396, § 6; 1998, ch. 795, §§ 2, 3; 1998, ch. 939, § 6; 2000, ch. 819, §§ 1, 2; 2001, ch. 74, § 4; 2001, ch. 161, § 1; 2001, ch. 310, § 1; 2002, ch. 832, § 2; 2006, ch. 900, § 3; 2007, ch. 203, § 2; 2010, ch. 1009, § 6; 2011, ch. 231, § 1; 2012, ch. 947, § 5; 2012, ch. 968, §§ 7, 8; 2013, ch. 386, § 2; 2014, ch. 915, § 3; 2014, ch. 1001, § 6; 2014, ch. 1015, § 10; 2015, ch. 369, § 1; 2017, ch. 147, §§ 3-6; 2017, ch. 371, § 2; 2018, ch. 755, § 2.

Compiler's Notes. The misdemeanor penalty provisions in subsections (g) and (j) may have been affected by the Criminal Sentencing Reform Act of 1989. See §§39-11-114,40-35-110,40-35-111.

The special penalty provisions for persons under 21 years of age provided for in subdivisions (b)(2)(B)(i) and (ii) may have been superseded by the amendment to subdivision (b)(2)(B) by Acts 1989, ch. 591, § 111, of the Criminal Sentencing Reform Act of 1989.

Acts 2010, ch. 1009 was repassed over the governor's veto on June 4, 2010.

Acts 2011, ch. 231, § 2 provided that the act, which amended subdivision (d)(5), shall apply to the Sunday sale hours of beer in any county where a liquor-by-the-drink referendum was approved by a municipality in an election held within twelve (12) months prior to May 20, 2011 and on or after May 20, 2011.

For the Preamble to the act concerning legislative intent as to payments between wholesalers and retailers of alcoholic beverages for on-premises consumption, see Acts 2015, ch. 369.

Acts 2018, ch. 755, which amended this section, contained two act sections 4. One of which amended §57-4-102, and the other was the effective date provision.

Amendments. The 2018 amendment rewrote (e)(2) which read: “(2)  No licensee shall give away any such sealed package or any drink of wine or alcoholic beverage to any patron or customer; provided, that any hotel licensed under this chapter may include as part of the accommodations to a registered guest the provision of up to four (4) seven hundred fifty milliliter (750 ml.) or smaller complimentary sealed packages of wine or alcoholic beverages which must have all appropriate taxes paid upon them.”

Effective Dates. Acts 2018, ch. 755, § 4. April 18, 2018.

Cross-References. Age of majority for purposes of purchasing, consuming, transporting alcoholic beverages, §§1-3-105,1-3-113.

Alcohol-related injuries, title 57, ch. 10.

Certain 1987 amendments to section inapplicable to certain counties, §57-4-104.

Eighteen-year-olds, legal responsibility, alcoholic beverage restrictions on persons under 21, §1-3-113.

False representations by minors, §§57-3-412,57-5-301.

Penalties for Class A, B and C misdemeanors, §40-35-111.

Penalty for Class E felony, §40-35-111.

Textbooks. Tennessee Jurisprudence, 16 Tenn. Juris., Intoxicating Liquors, § 12.

Law Reviews.

One Too Many: Sellers, Servers Must Know “How Much Is Too Much” to Avoid Alcohol Related Injuries (Mike Faulk), 43 Tenn. B.J. 12 (2007).

Selected Tennessee Legislation of 1983 (N. L. Resener, J. A. Whitson, K. J. Miller), 50 Tenn. L. Rev. 785 (1983).

Attorney General Opinions. Cosmetologists, application of alcoholic beverage regulations to, OAG 96-089 (7/24/96).

Applicability of local beer permit ordinance to liquor-by-the-drink license holders, OAG 99-098 (4/30/99).

In a county that has not approved liquor by the drink by means of a county-wide referendum, but in which several municipalities have approved liquor by the drink, the hours for the sale of beer in areas of the county outside of incorporated municipalities and within those municipalities that have adopted liquor by the drink will be those set for the sale of liquor by the drink by the alcoholic beverage commission; thus, beer sales in these areas of the county may begin as early as 10:00 a.m. on Sundays, and this starting time for beer sales is applicable to sales by stores for off-premises consumption, as well as sales for consumption on the premises, OAG 02-23 (2/27/02).

In a county that has not approved liquor by the drink by means of a county-wide referendum, but in which several municipalities have approved liquor by the drink, and in which one incorporated municipality that has approved liquor by the drink decides by resolution to “opt out” of the expanded time for Sunday liquor-by-the-drink sales in order to return to the previous starting time of 12:00 noon, the hours for the sale of beer in areas of the county outside of incorporated municipalities and within those other municipalities that have adopted liquor by the drink will be those set for the sale of liquor by the drink by the alcoholic beverage commission, and, therefore, beer sales in these areas of the county may begin as early as 10:00 a.m. on Sundays, OAG 02-23 (2/27/02).

A civic center could legally permit alcoholic beverages to be served during private engagements, so long as the service is provided by a restaurant, hotel or licensed caterer who complies with the requirements of T.C.A. §§ 57-4- 101(i) and 57-4-203(i)(3), OAG 06-175 (12/8/06).

Hours for the sale of beer in a municipality located within a Tennessee River resort district.  OAG 10-92, 2010 Tenn. AG LEXIS 98 (8/17/10).

Senate Bill 2415/House Bill 2027 of the 108th General Assembly (enacted as Public Chapter 1015), which requires liquor-by-the-drink licensees to make payment to wholesalers upon delivery of the product, does not violate equal protection under the United States or Tennessee Constitutions.  OAG 14-61, 2014 Tenn. AG Lexis 63 (6/17/14).

NOTES TO DECISIONS

1. Sales to Minors.

The public policy of this state is to prevent minors from purchasing, possessing, or imbibing alcoholic beverages. Brookins v. Round Table, Inc., 624 S.W.2d 547, 1981 Tenn. LEXIS 503 (Tenn. 1981), superseded by statute as stated in, Biscan v. Brown, — S.W.3d —, 2003 Tenn. App. LEXIS 875 (Tenn. Ct. App. Dec. 15, 2003).

A cause of action exists against a vendor who sells alcoholic beverages to a minor, where harm results therefrom. Brookins v. Round Table, Inc., 624 S.W.2d 547, 1981 Tenn. LEXIS 503 (Tenn. 1981), superseded by statute as stated in, Biscan v. Brown, — S.W.3d —, 2003 Tenn. App. LEXIS 875 (Tenn. Ct. App. Dec. 15, 2003).

2. Civil Actions.

A person who has the capacity and judgment to act responsibly in his own behalf cannot recover damages where he actively contributes to the intoxication of another and the intoxication is the proximate cause of the injury that is the subject of the legal action. Brookins v. Round Table, Inc., 624 S.W.2d 547, 1981 Tenn. LEXIS 503 (Tenn. 1981), superseded by statute as stated in, Biscan v. Brown, — S.W.3d —, 2003 Tenn. App. LEXIS 875 (Tenn. Ct. App. Dec. 15, 2003).

The owner or operator of an establishment selling alcoholic beverages by-the-drink to the public may only be held liable for injuries proximately caused by serving alcoholic beverages to a person who is visibly intoxicated at the time the alcoholic beverages are served. Mitchell v. Ketner, 54 Tenn. App. 656, 393 S.W.2d 755, 1964 Tenn. App. LEXIS 165 (Tenn. Ct. App. 1964), superseded by statute as stated in, Worley v. Weigel's, — S.W.2d —, 1994 Tenn. App. LEXIS 726 (Tenn. Ct. App. Dec. 14, 1994); Brookins v. Round Table, Inc., 624 S.W.2d 547, 1981 Tenn. LEXIS 503 (Tenn. 1981), superseded by statute as stated in, Biscan v. Brown, — S.W.3d —, 2003 Tenn. App. LEXIS 875 (Tenn. Ct. App. Dec. 15, 2003); Knapp v. Holiday Inns, Inc., 682 S.W.2d 936, 1984 Tenn. App. LEXIS 3430 (Tenn. Ct. App. 1984).

In a wrongful death action predicated upon a common law dram shop cause of action, it will rarely be appropriate for the trial court to grant a summary judgment for the defendant owner of the establishment selling alcoholic beverages by-the-drink where the person causing the fatal accident had been served alcoholic beverages immediately prior to the accident. Knapp v. Holiday Inns, Inc., 682 S.W.2d 936, 1984 Tenn. App. LEXIS 3430 (Tenn. Ct. App. 1984).

The sale of alcoholic beverages by any licensee or other person who is visibly intoxicated makes the seller guilty of negligence per se and where injury results such negligence per se must be a proximate cause of the injury to be actionable. Kirksey v. Overton Pub, Inc., 739 S.W.2d 230, 1987 Tenn. App. LEXIS 2792 (Tenn. Ct. App. 1987).

Though the furnishing of intoxicants in violation of T.C.A. §57-4-203 may be the proximate cause of an injury resulting from intoxication, yet even if that is the proximate cause, the plaintiff's action is barred nonetheless if he is guilty of proximate contributory negligence. Kirksey v. Overton Pub, Inc., 739 S.W.2d 230, 1987 Tenn. App. LEXIS 2792 (Tenn. Ct. App. 1987).

In an action by a minor plaintiff for injuries suffered in an auto accident against a restaurant that was guilty of negligence per se for serving her alcohol shortly before she drove, the plaintiff would be treated as an adult, and the fact that she was negligent per se in purchasing and consuming the beverages and in driving while intoxicated did not mean she was guilty of contributory negligence as a matter of law. In order to prevail, the restaurant had to show that plaintiff's negligence proximately caused or contributed to her injuries. Cook v. Spinnaker's of Rivergate, Inc., 878 S.W.2d 934, 1994 Tenn. LEXIS 63 (Tenn. 1994), rehearing denied, 878 S.W.2d 934, 1994 Tenn. LEXIS 164 (Tenn. 1994).

Sections 57-10-101 and 57-10-102 governing the liability of sellers of alcohol, rather than the duties imposed by criminal statutes, determine the civil liability of the seller. Worley v. Weigel's, Inc., 919 S.W.2d 589, 1996 Tenn. LEXIS 188 (Tenn. 1996), rehearing denied, — S.W.2d —, 1996 Tenn. LEXIS 255 (Tenn. 1996).

3. Gift of Beverages.

Fraternal organization officers, visitors and new members were deemed included within the prohibition of the gift of beverages to patrons or customers. Benevolent Protective Order of Elks, Lodge No. 1279 v. Olsen, 669 S.W.2d 654, 1984 Tenn. LEXIS 785 (Tenn. 1984).

4. Jury Instructions.

Trial court did not err in charging the jury that contributory negligence and assumption of the risk were proper defenses to plaintiffs' allegations that the defendants violated T.C.A. §57-4-203. Kirksey v. Overton Pub, Inc., 804 S.W.2d 68, 1990 Tenn. App. LEXIS 678 (Tenn. Ct. App. 1990).

5. Bar Patrons.

Bar patron was not liable under T.C.A. §57-4-203 for allegedly conspiring with bartenders to serve another party stronger drinks. Kirksey v. Overton Pub, Inc., 804 S.W.2d 68, 1990 Tenn. App. LEXIS 678 (Tenn. Ct. App. 1990).

57-4-204. Prohibited sexual or pornographic conduct — Enforcement.

  1. In addition to the other duties imposed under this title, the commission is authorized to enforce subsections (b), (c), and (d); and upon violation of subsections (b), (c), and (d) by any person, firm or corporation licensed under this chapter, the commission shall revoke the privilege license of such violator.
  2. The following acts or conduct on licensed premises are deemed contrary to public policy, and therefore no license shall be held at any premises where such conduct or acts are permitted:
    1. To employ, use or allow any person in the sale or service of alcoholic beverages or malt beverages in or upon the licensed premises while such person is unclothed or in such attire, costume or clothing as to expose to view any portion of the female breast below the top of the areola or of any portion of the pubic hair, anus, cleft of the buttocks, vulva or genitals;
    2. To employ, use or allow the services of any hostess or other person to mingle with the patrons while such hostess or other person is unclothed or in such attire, costume or clothing as described in subdivision (b)(1);
    3. To encourage or permit any person on the licensed premises to touch, caress or fondle the breasts, buttocks, anus or genitals of any other person;
    4. To permit any employee or person to wear or use any device or covering, exposed to view, which simulates the breast, genitals, anus, pubic hair or any portion thereof.
    1. Conduct or acts on licensed premises in violation of this subsection (c) are deemed contrary to public policy, and therefore no license shall be held at any premises where such conduct or acts are permitted.
    2. Live entertainment is permitted on any licensed premises, except that:
      1. No licensee shall permit any person to perform acts of or acts which simulate:
        1. Sexual intercourse, masturbation, sodomy, bestiality, oral copulation, flagellation or any sexual acts which are prohibited by law;
        2. The touching, caressing or fondling of the breast, buttocks, anus or genitals; or
        3. The displaying of the pubic hair, anus, vulva or genitals.
      2. Subject to subdivision (c)(2)(A), any entertainer who is employed in whole or in part by the licensee to dance at such licensee's premises shall perform only upon a stage at least eighteen inches (18") above the immediate floor level and removed at least six feet (6') from the nearest patron.
    3. No licensee shall permit any person to use artificial devices or inanimate objects to depict any of the prohibited activities described above.
    4. No licensee shall permit any person to remain in or upon the licensed premises who exposes to public view any portion of the person's genitals or anus.
  3. The following conduct or acts on licensed premises are deemed contrary to public policy, and therefore no license shall be held at any premises where such conduct or acts are permitted:
    1. The showing of film, still pictures, electronic reproduction, or other visual reproductions depicting:
      1. Acts or simulated acts of sexual intercourse, masturbation, sodomy, bestiality, oral copulation, flagellation or any sexual acts which are prohibited by law;
      2. Any person being touched, caressed or fondled on the breast, buttocks, anus or genitals;
      3. Scenes wherein a person displays the vulva or the anus or the genitals; or
      4. Scenes wherein artificial devices or inanimate objects are employed to depict, or drawings are employed to portray, any of the prohibited activities described above.
  4. Each county, city, or metropolitan government is empowered upon approval by a two-thirds (2/3) vote of its legislative body to authorize its law enforcement officers to conduct investigations into alleged violations of subsections (a)-(d), and such law enforcement officers shall report such violations to the commission for appropriate action by such commission.
  5. The commission shall be immune from liability resulting from conduct or acts of any law enforcement officers authorized to investigate violations of subsections (a)-(d) as provided in subsection (e).

Acts 1980, ch. 904, §§ 1-3.

57-4-205. Alcohol vaporizing devices.

  1. As used in this section, “alcohol vaporizing device” means any device, machine or process that, by means of heat, a vibrating element or any other method, mixes spirits, liquor or other alcoholic product with pure oxygen or other gas to produce a vaporized product that is dispensed for inhalation into the lungs through the nose or mouth.
  2. No licensee shall sell, deliver, or give away, or permit to be sold, delivered, or given away, any alcoholic beverage for dispensation by means of an alcohol vaporizing device.
  3. No licensee shall bring, keep, maintain or use, or permit another to bring, keep, maintain or use, an alcohol vaporizing device on the licensed premises, or on any area related to the licensed business over which the licensee exercises control or for which the licensee is responsible.
    1. A first violation of this section is a Class A misdemeanor and is grounds for suspension of the licensee's license, for a period not to exceed sixty (60) days.
    2. A second violation of this section is a Class A misdemeanor and shall result in the suspension of the licensee's license, for a period of not less than thirty (30) days nor more than ninety (90) days.
    3. A third or subsequent violation of this section is a Class E felony and shall result in suspension of the licensee's license, for a period of one (1) year.

Acts 2005, ch. 402, § 1.

Cross-References. Penalty for Class A misdemeanor, §40-35-111.

Penalty for Class E felony, §40-35-111.

Part 3 Taxes and Fees

57-4-301. Privilege taxes — Tax on retail sales — Carrier license fees — Mixing bar tax.

  1. It is hereby declared the legislative intent that every person is exercising a taxable privilege who engages in the business of selling at retail in this state alcoholic beverages for consumption on the premises.
    1. Each applicant for an on-premises consumption license shall pay to the commission a one-time, nonrefundable fee in the amount of three hundred dollars ($300) when the application is submitted for review. Further, once a license is approved, for the exercise of such privilege, the following taxes are levied to be earmarked for and allocated to the commission for the purpose of the administration and enforcement of the duties, powers, and functions of the commission, and are to be paid annually, as follows:

      Effective       July 2003 July 2004 (A) Private club $ 300 $ 500 (B) Convention center $ 500 $1000 (C) Premier type tourist resort $1500 $2000 (D) Historic performing arts center $ 300 $ 150 (E) Urban park center $ 500 $ 150 (F) Commercial passenger boat company $ 750 $1250 (G) Historic mansion house site/Historic inn $ 300 $ 150 (H) Historic interpretive center $ 300 $ 150 (I) Community theater $ 300 $ 150 (J) Zoological institution $ 300 $ 150 (K) Museum $ 300 $ 150 (L) Establishment in a terminal building of a commercial air carrier airport $1000 $1500 (M) Commercial airline travel club $ 500 $1000 (N) Public aquarium $ 300 $ 150 (O) Motor speedway $1000 $2000 (P) Sports facility $1000 $2000 (Q) Theater $ 300 $ 150 Further, for the exercise of such privilege, the following taxes are hereby levied to be earmarked for and allocated to the commission for the purpose of administration and enforcement of the duties, powers, and functions of the commission, and are to be paid in accordance with the following schedule: (R) Restaurant, according to seating capacity, on licensed premises: (i) 40 — 74 seats $ 650 (ii) 75 — 125 seats $ 750 (iii) 126 — 175 seats $ 925 (iv) 176 — 225 seats $ 975 (v) 226 — 275 seats $1100 (vi) 276 seats and more $1200 Wine-only restaurant, according to seating capacity on licensed premises: July 2003 July 2004 July 2005 July 2006 (vii) 40 — 125 seats $ 120 $ 170 $ 220 $ 270 (viii) 126 — 175 seats $ 150 $ 200 $ 250 $ 300 (ix) 176 — 225 seats $ 160 $ 210 $ 260 $ 310 (x) 226 — 275 seats $ 180 $ 230 $ 280 $ 330 (xi) 276 seats and more $ 200 $ 250 $ 300 $ 350 (S) Caterers: July 2003 July 2004 July 2005 July 2006 $ 500 $ 550 $ 575 $ 625 (T) Hotels, according to room capacity, on licensed premises: July 2003 July 2004 July 2005 July 2006 (i) 0 — 99 rooms $1000 $1000 $1000 $1000 (ii) 100 — 399 rooms $1000 $1000 $1200 $1250 (iii) 400 rooms and over $1000 $1200 $1400 $1500 (U) Retirement center  $150 (V) Civic arts center  $150 (W) Limited service restaurant, based on the gross sales of  prepared food: (i) At least 30% of gross sales $2,000 (ii) At least 20% but not more than 30% of gross sales  $3,000 (iii) At least 15% but not more than 20% of gross sales $4,000 (iv) 0% but not more than 15% of gross sales $5,000

      Click to view table.

    2. Each county or municipality within which such privilege is exercised is authorized to levy and collect the privilege tax separately. However, such privilege tax collected by the county or municipality will remain at the 2003 level and any monetary increase of the privilege tax in fiscal years beginning July 1, 2004, and thereafter, as provided in this subsection (b) will be solely used for the purpose of the administration and enforcement of the duties, powers, and functions of the Tennessee alcoholic beverage commission; provided, however, that in any county where metropolitan government prevails, the urban service district shall constitute the municipality and the general service district shall constitute the county insofar as this chapter is concerned.
    3. Notwithstanding subdivision (b)(1)(E) to the contrary, “urban park centers” under § 57-4-102(39)(G)-(K) shall pay an annual privilege tax of four thousand dollars ($4,000) to be earmarked for and allocated to the commission for the purpose of administration and enforcement of the duties, powers, and functions of the commission.
    1. In addition to the privilege taxes levied in subdivision (b)(1), there is further levied a tax equal to the rate of fifteen percent (15%) of the sales price of all alcoholic beverages sold for consumption on the premises, the tax to be computed on the gross sales of alcoholic beverages for consumption on the premises for the purpose of remitting the tax due the state, and to include each and every retail thereof.
    2. A person required by subdivision (c)(1) to collect and pay the tax on the sale of alcoholic beverages on the premises may include the tax in the menu price of the alcoholic beverage or may include the tax on the final bill to the customer. A person that does not include the tax in the menu price of the alcoholic beverage product must advise customers on its menu that a fifteen percent (15%) tax on the sale of alcoholic beverages will be added to the final bill.
  2. Commercial airlines, paddlewheel steamboat companies and passenger trains shall, in lieu of taxes levied under subsections (b) and (c), pay annually to the state, for state purposes, a license fee of twelve hundred fifty dollars ($1250). Commercial airlines, paddlewheel steamboat companies and passenger trains which have paid the annual license fee under this section may bring into and store in this state alcoholic beverages on which the Tennessee alcoholic beverage taxes levied under § 57-3-302, have not been paid, but must comply with subdivisions (d)(1) and (2):
    1. Commercial airlines, paddlewheel steamboat companies and passenger trains that bring into, or possess in this state alcoholic beverages on which taxes levied by this state have not been paid are liable for such taxes on the alcoholic beverages;
    2. The liability of commercial airlines, paddlewheel steamboat companies and passenger trains for taxes levied under § 57-3-302, is determined by multiplying the:
      1. Quantity of each type of alcoholic beverage purchased within the operating system of each commercial airline, paddlewheel steamboat company or passenger train by the ratio of its revenue passenger miles in Tennessee to the total revenue passenger miles within its system; and
      2. Respective results obtained under subdivision (d)(2)(A), by the applicable tax rate for each type under § 57-3-302, and the rules and regulations promulgated pursuant thereto;
    3. Monthly reports of the liability, determined under subdivision (d)(2), shall be submitted to the department of revenue on forms designated by the commissioner, on or before the last day of each month following the month during which any tax liability arises under this subsection (d). A commercial airline, paddlewheel steamboat company or passenger train that fails to file the report required, or to pay the tax payable under this section in a timely manner as defined by rules and regulations promulgated by the department, is liable for interest and penalties as provided by law; and
    4. This subsection (d) does not apply to commercial airline travel clubs.
  3. No tax authorized or imposed by this section shall be levied or assessed from any charitable, nonprofit, or political organization selling alcoholic beverages at retail pursuant to a special occasion license.
  4. A restaurant, hotel, or caterer licensed under this chapter may obtain a catering license upon the payment of an additional privilege tax in accordance with subdivision (b)(1)(S), for state purposes, to be paid annually.
  5. A special historic district authorized to serve wine under § 57-4-101 shall pay an annual privilege tax of one hundred dollars ($100) for the privilege of serving wine within such district.

Acts 1967, ch. 211, § 3; 1972, ch. 682, § 5; 1972, ch. 756, § 6; 1979, ch. 284, § 1; 1979, ch. 401, § 5; T.C.A., § 57-157; Acts 1980, ch. 898, § 3; 1981, ch. 404, § 5; 1981, ch. 475, § 5; 1983, ch. 52, § 6; 1983, ch. 300, § 5; 1983, ch. 469, § 8; 1984, ch. 975, § 8; 1986, ch. 899, § 9; 1987, ch. 444, §§ 10, 11; 1991, ch. 219, § 2; 1992, ch. 674, § 8; 1998, ch. 795, § 4; 2001, ch. 64, § 3; 2001, ch. 74, § 5; 2001, ch. 84, § 3; 2004, ch. 544, § 3; 2004, ch. 876, §§ 7-10; 2005, ch. 253, § 3; 2009, ch. 168, § 1; 2010, ch. 647, § 3; 2010, ch. 1133, § 4; 2012, ch. 790, §§ 3, 4; 2013, ch. 371, § 2; 2014, ch. 915, § 1; 2017, ch. 338, § 4.

Compiler's Notes. Acts 1983, ch. 300, § 6 provided that the addition by that act of subdivision (b)(1)(I) shall apply only to counties having a population of 450,000 or greater according to the 1980 federal census or any subsequent census.

Acts 2009, ch. 168, § 2 provided that for purposes of §57-4-301, the annual taxes imposed for an historic inn shall be equal to the tax assessed for an historic mansion house site.

For tables of U.S. decennial populations of Tennessee counties, see Volume 13 and its supplement.

Cross-References. Certain 1987 amendments to section inapplicable to certain counties, §57-4-104.

Tennessee wine products exempt, §57-3-207.

Textbooks. Tennessee Jurisprudence, 16 Tenn. Juris., Intoxicating Liquors, §§ 8, 10; 23 Tenn. Juris., Taxation, § 9.

Attorney General Opinions. Distribution of tax proceeds in City of Columbia, OAG 94-72 (6/2/94).

Distribution of tax proceeds in Bedford County, OAG 97-143 (10/23/97).

Licensing and taxation of hotels selling alcohol for consumption on the premises.  OAG 16-05, 2016 Tenn. AG LEXIS 3 (2/9/2016).

Licensed distilleries that sell their own alcoholic beverages for consumption on the premises, as authorized by T.C.A. §57-3-202(i)(4), must remit the 15% tax imposed on the sales price of each alcoholic beverage sold under T.C.A. §57-4-301(c)(1), because they are exercising the taxable privilege of “engag[ing] in the business of selling at retail in this state alcoholic beverages for consumption on the premises.”   These distilleries are not, however, required to remit the annual taxes imposed by §57-4-301(b)(1), which are specific to facilities licensed under T.C.A. 57-4-101 et seq. OAG 18-12, 2018 Tenn. AG LEXIS 10 (3/16/2018).

NOTES TO DECISIONS

1. In General.

The liquor by the drink tax is a tax imposed expressly upon persons engaged in the business of selling alcoholic beverages for consumption on the premises. Oliver v. King, 612 S.W.2d 152, 1981 Tenn. LEXIS 413 (Tenn. 1981).

2. Only One Taxing Authority.

The use of the word “separately” in this statute does not mean that the privilege tax may be collected twice, once for the county and once for the municipality. Metropolitan Government of Nashville & Davidson County v. Motel Systems, Inc., 525 S.W.2d 840, 1975 Tenn. LEXIS 661 (Tenn. 1975).

3. Effect of General Sales Taxes.

The legislative expressions in the liquor regulatory acts caption and taxing statutes, simply do not, either expressly or by implication negate the express intent of the Legislature in the 1947 Sales Tax Act that it be in addition to all taxes, whether levied as excise, license, or privilege taxes, a clear authorization of the sales tax as a double tax. Oliver v. King, 612 S.W.2d 152, 1981 Tenn. LEXIS 413 (Tenn. 1981).

If the Legislature had intended that liquor consumed on the premises should be exempt from the general sales tax it would have expressly stated so. Oliver v. King, 612 S.W.2d 152, 1981 Tenn. LEXIS 413 (Tenn. 1981).

4. Burden of Proof.

The burden of proof is upon the taxpayer to prove that an assessment made is incorrect, and vague allegations by the taxpayer to the effect that the department's method of ascertaining the taxes due are incorrect were not sufficient to carry such burden. The taxpayer must show by a preponderance of evidence that he not only overpaid his taxes, but also the amount of such overpayment. Edmondson Management Service, Inc. v. Woods, 603 S.W.2d 716, 1980 Tenn. LEXIS 482 (Tenn. 1980); Benevolent Protective Order of Elks, Lodge No. 1279 v. Olsen, 669 S.W.2d 654, 1984 Tenn. LEXIS 785 (Tenn. 1984); Ace of Clubs v. Huddleston, 872 S.W.2d 679, 1993 Tenn. App. LEXIS 516 (Tenn. Ct. App. 1993).

5. Beverages Used in Cooking.

Restaurant's use of wines in cooking preparations was not subject to the privilege tax for retail sales of alcoholic beverages for consumption on the premises. Copper Cellar Corp. v. Jackson, 762 S.W.2d 560, 1988 Tenn. LEXIS 249 (Tenn. 1988).

57-4-302. Collection of taxes.

The commissioner of revenue is charged with the responsibility of collecting all taxes set out herein due to the state, and in addition to the requirements set out herein, is authorized to promulgate such rules and regulations as will further implement the full collection of all taxes herein imposed:

  1. Tax Collected from Consumers.  The tax hereby imposed shall be collected by the retailer from the consumer insofar as it can be done;
  2. Tax to Be Separately Displayed from List Price.  The commissioner may by regulation provide that the amount collected by the retailer from the consumer in reimbursement of the tax be displayed separately from the list price, the price advertised in the premises, the marked price, or other price on the sale check, or other proof of sale;
    1. Bond of Licensee.  Every licensee permitted to do business in this state shall, as a condition precedent to the granting of a license, in addition to all other requirements set out herein, post with the commissioner an indemnity bond with good and solvent corporate surety, approved by the commissioner, in an amount equal to four (4) times the average monthly tax liability as determined by the commissioner or in the amount of one thousand dollars ($1,000), whichever is greater, conditioned upon the proper payment of all taxes for which the sale licensee may become liable. If a restaurant is licensed by the commission under § 57-4-101(i), the bond amount imposed shall be one fifth (1/5) the amount specified in this subdivision (3)(A). The forfeiture or cancellation of the bond, for any reason whatsoever, shall automatically revoke the license granted herein. The bond provided for herein shall run for such time as may be determined by the commissioner.
    2. Certificate of Deposit.  In lieu of a corporate surety on the bond required by subdivision (3)(A), the commissioner may allow the licensee to secure such bond by depositing collateral in the form of a certificate of deposit, as accepted and authorized by the banking laws of this state, which has a face value equal to the amount of the bond. Such collateral may be deposited with any authorized state depository designated by the commissioner. Interest on any deposited certificate of deposit shall be payable to the licensee who has deposited it as collateral, or to such person as the licensee or the certificate may direct.
  3. Time of Payment.  The tax levied hereunder in § 57-4-301(c) shall be due and payable monthly, on the first day of each month, and for the purpose of ascertaining the amount of tax payable under this chapter, it is the duty of all licensees on or before the fifteenth day of each month to transmit to the commissioner, upon forms prescribed, prepared and furnished by the commissioner, returns showing the gross sales, as the case may be, arising from all sales taxable under this chapter during the preceding calendar month;
  4. Tax Transmitted with Return.  At the time of transmitting the return required hereunder to the commissioner, the licensee shall remit to the commissioner therewith the amount of tax due under the applicable provisions of this chapter, and failure to so remit such tax shall cause the tax to become delinquent; and
  5. Form of Payment.  All taxes, interest and penalties imposed under § 57-4-301(c) shall be paid to the commissioner at Nashville in the form of remittance required by the commissioner.

Acts 1967, ch. 211, § 3; 1973, ch. 68, § 1; 1976, ch. 441, § 1; T.C.A., § 57-158; Acts 1989, ch. 558, § 1; 1992, ch. 982, § 2.

Textbooks. Tennessee Jurisprudence, 16 Tenn. Juris., Intoxicating Liquors, §§ 8, 10; 23 Tenn. Juris., Sretyship, § 5.

Attorney General Opinions. Licensing and taxation of hotels selling alcohol for consumption on the premises.  OAG 16-05, 2016 Tenn. AG LEXIS 3 (2/9/2016).

NOTES TO DECISIONS

1. Extent of Bond.

When T.C.A. §57-4-302(3) of this section is construed as an integral part of the liquor sales law the conclusion is inescapable that the legislature intended to require a bond whose obligation would be limited to the payment of all state taxes incurred by the licensee by reason of his sale of alcoholic beverages by the drink and would not cover taxes incurred by reason of other activities. Aetna Casualty & Surety Co. v. Woods, 565 S.W.2d 861, 1978 Tenn. LEXIS 550 (Tenn. 1978).

A surety bond executed pursuant to T.C.A. §57-4-302(3) indemnifies the principal against all taxes for which the sales licensee may become liable, including general sales taxes. Exchange Mut. Ins. Co. v. Olsen, 655 S.W.2d 938, 1983 Tenn. LEXIS 710 (Tenn. 1983).

A privilege tax to the principal is also a privilege tax to the surety. Exchange Mut. Ins. Co. v. Olsen, 667 S.W.2d 62, 1984 Tenn. LEXIS 775 (Tenn. 1984).

2. Surplusage.

In construing a liquor license bond the court will assume that the parties executing the bond intended compliance with the requirements of the statute, nothing more and nothing less, and if the bond contains conditions not prescribed by the statute they may be eliminated as surplusage. Aetna Casualty & Surety Co. v. Woods, 565 S.W.2d 861, 1978 Tenn. LEXIS 550 (Tenn. 1978).

Any provisions of bond which purport to diminish surety's statutory liability are mere surplusage. Exchange Mut. Ins. Co. v. Olsen, 655 S.W.2d 938, 1983 Tenn. LEXIS 710 (Tenn. 1983).

3. Ambiguity.

Where the amount of a bond revised through riders and other documents created two plausible interpretations of the agreement, the ambiguity was resolved against the draftsmen and in favor of the other contracting party. Reliance Ins. Co. v. Olsen, 678 S.W.2d 59, 1984 Tenn. LEXIS 859 (Tenn. 1984).

57-4-303. Settlement of tax on quitting business.

If any licensee liable for any tax, interest or penalty levied hereunder shall sell the business or stock of goods, or shall quit the business, the licensee shall make a final return and payment within fifteen (15) days after the date of selling or quitting the business. The successor, successors or assigns, if any, shall withhold sufficient of the purchase money to cover the amount of such taxes, interest and penalties due and unpaid until such former owner shall produce a receipt from the commissioner showing that they have been paid, or a certificate stating that no taxes, interest or penalties are due. If the purchaser of a business or stock of goods shall fail to withhold the purchase money, the purchaser shall be personally liable for the payment of the taxes, interest, and penalties accruing and unpaid on account of the operation of the business by any former owner, owners, or assigns.

Acts 1967, ch. 211, § 3; T.C.A., § 57-159.

Attorney General Opinions. Licensing and taxation of hotels selling alcohol for consumption on the premises.  OAG 16-05, 2016 Tenn. AG LEXIS 3 (2/9/2016).

57-4-304. Grace period — Delinquencies and other violations — Penalties.

  1. The commissioner for good cause may extend for not to exceed thirty (30) days the time for making any returns required under this chapter.
    1. When any licensee shall fail to make any return and pay the full amount of the tax as required by this chapter for as many as three (3) times during any one (1) year licensing period, the commission, upon recommendation of the commissioner, may revoke or suspend the license held by such licensee in the same manner and under the same conditions as provided by § 57-4-202.
      1. It is a Class B misdemeanor and punishable as such for any person to engage or continue to engage in business after revocation of the person's license or during any period of suspension of the license as provided hereinabove; and each day business is done in violation hereof shall constitute a separate offense.
      2. In addition, the commissioner or the commissioner's delegate or the commission may file and maintain injunctive proceedings, acting either through the attorney general or the attorney general's delegate or through the legal assistant to the commissioner or the legal assistant to the commissioner's delegate, against any person for the purpose of enjoining the person from doing business as such a licensee during any period of suspension or after revocation of the license. Upon a finding that such person is doing business in violation of the order of revocation or suspension, an injunction shall be issued thereupon. If any person shall refuse to obey or otherwise violate any injunction so issued, or shall break into or enter, or occupy or use, any building or place of business while closed under any injunction so issued, whether preliminary or final, the person is guilty of contempt of court and shall be punished by a fine of not less than one hundred dollars ($100) nor more than one thousand dollars ($1,000) or by imprisonment of not less than thirty (30) days nor more than one (1) year, or by both fine and imprisonment in the discretion of the court.

Acts 1967, ch. 211, § 3; 1970, ch. 398, § 5; 1973, ch. 68, § 2; T.C.A., § 57-160; Acts 1980, ch. 885, § 5; 1985, ch. 76, § 1; 1985, ch. 396, § 6; 1988, ch. 526, § 14; 1989, ch. 591, § 112.

Cross-References. Penalty for Class B misdemeanor, §40-35-111.

Compiler's Notes. Acts 1988, ch. 526, § 45 provided that the amendment by that act shall apply to all assessments of penalty made on or after January 1, 1989.

57-4-305. Notice of licensee's tax delinquency — Response.

  1. In the event any licensee is delinquent in the payment of the tax herein provided for, the commissioner may give notice of the amount of such delinquency by registered mail to all persons, including the commission, having in their possession or under their control any credits or other personal property belonging to such dealer, or owing any debts to such dealer at the time of receipt by them of such notice, and thereafter any person so notified shall neither transfer nor make any other disposition of such credits, other personal property, or debts, until the commissioner shall have consented to a transfer or disposition, or until thirty (30) days shall have elapsed from and after the receipt of such notice. Any notice given to the commission pursuant to this section shall be on paper measuring eight and one-half inches by eleven inches (8½" x 11") and shall contain information on not more than one (1) licensed dealer who is delinquent in the payment or remittance of any tax owing to this state.
  2. All persons so notified must, within five (5) days after receipt of such notice, advise the commission of any and all such credits, other personal property, or debts, in their possession, under their control or owing by them, as the case may be.

Acts 1967, ch. 211, § 3; T.C.A., § 57-161; 1999, ch. 403, § 5.

Cross-References. Certified mail in lieu of registered mail, §1-3-111.

57-4-306. Distribution of collections.

  1. All gross receipt taxes collected under § 57-4-301(c) shall be distributed by the commissioner of revenue as follows:
    1. Fifty percent (50%) to the general fund to be earmarked for education purposes; and
    2. The other fifty percent (50%) to be distributed to local political subdivisions as follows:
      1. Collections for privileges exercised in an incorporated municipality shall be distributed by the commissioner to the city recorder; and
      2. Collections for privileges exercised in an unincorporated area of the county shall be distributed by the commissioner to the county trustee.
  2. The proceeds received by a local political subdivision pursuant to subdivision (a)(2) must be distributed by the local political subdivision in the following manner:
    1. One-half (½) of the proceeds must be distributed as follows:
      1. If the county school system is the only LEA in the county, then to the county trustee for the county school system from the collection of taxes in the county or any city exercising the privilege authorized under § 57-4-301(c);
      2. If a city exercises the privilege authorized under § 57-4-301(c) and operates a kindergarten through grade twelve (K-12) school system, then to the city recorder, who shall retain the collections for the city school system;
      3. If a city exercises the privilege authorized under § 57-4-301(c) and operates a city school system that is not a kindergarten through grade twelve (K-12) school system, then to the city recorder:
        1. In the amount the percentage that the prior year's average daily attendance (ADA) of the students in the city school system is to the prior year's ADA of public school students residing in the city who attend either the city school system or the county school system with the remaining amount distributed to the county trustee for the county school system, if the city lies entirely in a single county; or
        2. In the amount the percentage that the prior year's ADA of the students in the city school system is to the prior year's ADA of public school students residing in the city who attend either the city school system or a county school system with the remaining amount divided between the counties based on where the tax was collected and distributed to the county trustees for the county school systems, if the city lies within two (2) or more counties;
      4. Notwithstanding § 49-3-315, if a city exercises the privilege authorized under § 57-4-301(c), but does not operate a city school system, then to the county trustee for the county school system;
      5. If a special school district lies, in whole or in part, within a city that exercises the privilege authorized under § 57-4-301(c), then to the appropriate official acting for the special school district in the amount the percentage the ADA of public school students residing in the city and attending the special school district is to the total ADA of city public school students who attend either the special school district or the county school system with any remaining amount distributed to the county trustee for the county school system;
      6. Notwithstanding § 49-3-315, if a county exercises the privilege authorized under § 57-4-301(c) and one (1) or more city school systems operate within the county, then to the county trustee for the county school system any tax revenues collected outside the boundaries of cities exercising the privilege authorized under § 57-4-301(c) that have city school systems; or
      7. If a city that lies in two (2) or more counties exercises the privilege authorized under § 57-4-301(c) but does not operate a city school system, then tax revenues collected in the city must be divided between the counties based on where the tax was collected and distributed to the county trustees for the county school systems;
    2. The other one-half (½) of the proceeds must be distributed as follows:
      1. Collections of gross receipts collected in unincorporated areas, to the county general fund; and
      2. Collections of gross receipts in incorporated cities and towns, to the city or town wherein such tax is collected; and
    3. As used in subdivision (b)(1), “average daily attendance” or “ADA” means:
      1. If the school system was in operation during the prior school year, the aggregate days' attendance of the school system during the prior school year divided by the number of days school was in session during the prior school year; or
      2. If the school system was not in operation during the prior school year, then the estimated expected attendance of the school system for the current school year as reported to the department of education.
  3. [Deleted by 2020 amendment.]
  4. Notwithstanding subdivision (a)(2), the fifty percent (50%) of the gross receipt taxes allocated to local political subdivisions by subdivision (a)(2) and collected in a municipality which is a premier tourist resort shall be distributed to and expended by such municipality for schools in such municipality.
  5. By August 1, 2014, every city or county that exercises the privilege authorized under § 57-4-301(c) shall provide written notice to each school system operating within its jurisdiction. This notice shall contain a statement that the local political subdivision exercises the privilege authorized under § 57-4-301(c), a statement that students within the jurisdiction attend a school or schools operated by the school system, a statement that the school system is authorized to receive a portion of the revenues collected, and a reference to this part. A city or county that, subsequent to July 1, 2014, elects to exercise the privilege authorized under § 57-4-301(c), shall comply with the notice provisions of this subsection (e) within thirty (30) days of the effective date of the referendum.
  6. If the local political subdivision fails to remit the proceeds to the appropriate school fund, system, or systems as required under subsection (b) within sixty (60) days of receipt from the commissioner, then the aggrieved local school board shall notify the comptroller of the treasury who shall deliver by certified mail a written notice of such failure to the local political subdivision within five (5) business days of notice of the failure.
  7. In the event the local political subdivision fails to remit the proceeds within thirty (30) days of the receipt of such notice, the comptroller of the treasury shall direct the commissioner to withhold future distributions of proceeds to the local political subdivision authorized under subsection (b) until a final determination is made pursuant to subsection (h).
  8. Upon the commissioner withholding distributions of proceeds as authorized under subsection (g), an aggrieved local school board shall have the authority to pursue equitable relief against the local political subdivision in the chancery court; provided, however, that in the event that the state is a party or becomes a party to the suit, then such suit shall be filed or transferred to the chancery court of Davidson County. Upon receipt of a copy of the final judgment of the court, the commissioner shall distribute all withheld proceeds to the local political subdivision, which shall remit such proceeds to the aggrieved party pursuant to the judgment. If the amount of the judgment is not satisfied by the withheld proceeds, then the local political subdivision shall be solely responsible for remitting future proceeds to the aggrieved party pursuant to the judgment.
    1. Subsections (a)-(h) shall not apply in counties having a population, according to the 2010 federal census or any subsequent federal census of:

      not less than  nor more than

      336,400 336,500

      98,900 99,000

      In such counties, all gross receipt taxes collected under §57-4-301(c) shall be distributed by the commissioner of revenue as follows:

      1. Fifty percent (50%) to the general fund to be earmarked for education purposes; and
      2. The other fifty percent (50%) to be distributed to local political subdivisions as follows:
        1. Collections for privileges exercised in an incorporated municipality shall be distributed by the commissioner to the city recorder; and
        2. Collections for privileges exercised in an unincorporated area of the county shall be distributed by the commissioner to the county trustee.
    2. The proceeds received in each local political subdivision pursuant to subdivision (i)(1)(B) shall be distributed by the local political subdivision in the following manner:
      1. One-half (½) of the proceeds shall be expended and distributed in the same manner as the county property tax for schools is expended and distributed; any proceeds expended and distributed to municipalities which do not operate their own school systems separate from the county are required to remit one-half (½) of their proceeds of the gross receipts liquor-by-the-drink tax to the county school fund; and
      2. The other one-half (½) of the proceeds shall be distributed as follows:
        1. Collections of gross receipts collected in unincorporated areas, to the county general fund; and
        2. Collections of gross receipts in incorporated cities and towns, to the city or town wherein such tax is collected.

        [Effective  until July 1, 2023.]

    1. Notwithstanding this section to the contrary, fifty percent (50%) of the event revenue from gross receipt taxes collected under § 57-4-301(c) for privileges exercised in an event venue during an event period that would not otherwise be earmarked for educational purposes shall be deposited in the event tourism fund.
    2. One and one hundred twenty-five thousandths percent (1.125%) of funds deposited in the event tourism fund shall be retained by the department of finance and administration to be used for costs associated with administering the fund and this section. The department of finance and administration shall cause to be paid to the department of revenue an amount to offset the department's costs in administering this section.
    3. As used in this subsection (j):
      1. “Event period” has the same meaning as defined in § 67-6-105;
      2. “Event revenue” has the same meaning as defined in § 67-6-105; and
      3. “Event venue” has the same meaning as defined in § 67-6-105.

Acts 1967, ch. 211, § 3; T.C.A., § 57-162; Acts 1982, ch. 942, §§ 1, 2; 1983, ch. 356, § 1; 2003, ch. 355, § 19; 2005, ch. 500, § 2; 2006, ch. 989, § 7; 2014, ch. 901, § 1; 2015, ch. 220, §§ 1, 2; 2016, ch. 885, §§ 1, 2; 2017, ch. 346, §§ 1, 2; 2018, ch. 687, §§ 1, 2; 2018, ch. 959, § 2; 2019, ch. 194, §§ 1, 2; 2020, ch. 696, §§ 1-4.

Compiler's Notes. For tables of U.S. decennial populations of Tennessee counties, see Volume 13 and its supplement.

Acts 2003, ch. 355, § 66 provided that no expenditure of public funds pursuant to the act shall be made in violation of the provisions of Title VI of the Civil Rights Act of 1964, as codified in 42 U.S.C. § 2000d.

Acts 2006, ch. 989, § 17 provided that the act, which deleted former subdivisions (4) and (5), shall apply to funds remitted to the department of revenue on or after August 1, 2006.

For the Preamble to the act concerning a mechanism by which a sponsoring county or municipality and event venue may receive reimbursement for certain event-related expenses out of the sales tax revenues generated in connection with a qualified event, please refer to Acts 2018, ch. 959.

Acts 2018, ch. 959, § 4 provided that the provisions contained in the act, which added subsection (j), shall terminate on July 1, 2023.

Amendments. The 2018 amendment by ch. 687 in (b), substituted “2016-2017” for “2015-2016” throughout (b)(1), substituted “From July 1, 2017, until June 30, 2018,” for “From July 1, 2016, until June 30, 2017,” at the beginning of (b)(1), substituted “2017-2018” for “2016-2017 throughout (b)(2), substituted “From July 1, 2018, until June 30, 2019,” for “From July 1, 2017, until June 30, 2018,” at the beginning of (b)(2); and substituted “After July 1, 2019” for “After July 1, 2018” at the beginning of the introductory language of (c).

The 2018 amendment by ch. 959, effective on January 1, 2019 and effective until July 1, 2023, added (j). See the Compiler's Notes.

The 2019 amendment, substituted “2017-2018” for “2016-2017”, “2018-2019” for “2017-2018” and “2019-2020” for “2018-2019” throughout subsection (b); in (b)(1), substituted “July 1, 2018 until June 30, 2019” for “July 1, 2017 until June 30, 2018” and substituted “must” for “shall” in (b)(1), (b)(1)(A)(vii), (b)(1)(B), (b)(1)(B)(ii), and (b)(2)(A)(vii); in (b)(1)(A)(ii) substituted “then to the city recorder, who shall retain” for “then the city recorder shall retain”; in (b)(2)(A)(vi),  inserted “Notwithstanding §49-3-315, if a county exercises the privilege authorized under §57-4-301(c)” at the beginning; substituted “After July 1, 2020” for “After July 1, 2019” at the beginning of (c).

The 2020 amendment rewrote (b), which read; “(b) From July 1, 2018, until June 30, 2019, the proceeds received by a local political subdivision pursuant to subdivision (a)(2) must be distributed by the local political subdivision in the following manner:“(A) One-half (½) of the proceeds must be distributed as follows:“(i) If the county school system is the only LEA in the county, then to the county trustee for the county school system from the collection of taxes in the county or any city exercising the privilege authorized under §57-4-301(c);“(ii) If a city exercises the privilege authorized under §57-4-301(c) and operates a kindergarten through grade twelve (K-12) school system, then to the city recorder, who shall retain the collections for the city school system;“(iii) If a city exercises the privilege authorized under § 57-4-301(c) and operates a city school system that is not a kindergarten through grade twelve (K-12) school system, then to the city recorder:“(a ) In the amount the percentage that the 2017-2018 average daily attendance (ADA) of the students in the city school system is to the 2017-2018 ADA of public school students residing in the city who attend either the city school system or the county school system with the remaining amount distributed to the county trustee for the county school system, if the city lies entirely in a single county; or“(b ) In the amount the percentage that the 2017-2018 ADA of the students in the city school system is to the 2017-2018 ADA of public-school students residing in the city who attend either the city school system or a county school system with the remaining amount divided between the counties based on where the tax was collected and distributed to the county trustees for the county school systems, if the city lies within two (2) or more counties;“(iv) Notwithstanding §49-3-315, if a city exercises the privilege authorized under § 57-4-301(c), but does not operate a city school system, then to the county trustee for the county school system;“(v) If a special school district lies, in whole or in part, within a city that exercises the privilege authorized under § 57-4-301(c), then to the appropriate official acting for the special school district in the amount the percentage the ADA of public-school students residing in the city and attending the special school district is to the total ADA of city public-school students who attend either the special school district or the county school system with any remaining amount distributed to the county trustee for the county school system;“(vi) Notwithstanding §49-3-315, if a county exercises the privilege authorized under § 57-4-301(c) and one (1) or more city school systems operate within the county, then to the county trustee for the county school system any tax revenues collected outside the boundaries of cities exercising the privilege authorized under § 57-4-301(c) that have city school systems; or“(vii) If a city that lies in two (2) or more counties exercises the privilege authorized under § 57-4-301(c) but does not operate a city school system, then tax revenues collected in the city must be divided between the counties based on where the tax was collected and distributed to the county trustees for the county school systems; and“(B) The other one-half (½) of the proceeds must be distributed as follows:“(i) Collections of gross receipts collected in unincorporated areas, to the county general fund; and“(ii) Collections of gross receipts in incorporated cities and towns, to the city or town wherein such tax is collected.“(2) From July 1, 2019, until June 30, 2020, the proceeds received by a local political subdivision pursuant to subdivision (a)(2) must be distributed by the local political subdivision in the following manner:“(A) One-half (½) of the proceeds must be distributed as follows:“(i) If the county school system is the only LEA in the county, then to the county trustee for the county school system from the collection of taxes in the county or any city exercising the privilege authorized under § 57-4-301(c);“(ii) If a city exercises the privilege authorized under § 57-4-301(c) and operates a kindergarten through grade twelve (K-12) school system, then the city recorder shall retain the collections for the city school system;“(iii) If a city exercises the privilege authorized under § 57-4-301(c) and operates a city school system that is not a kindergarten through grade twelve (K-12) school system, then to the city recorder:“(a ) In the amount the percentage that the 2018-2019 average daily attendance (ADA) of the students in the city school system is to the 2018-2019 ADA of public school students residing in the city who attend either the city school system or the county school system with the remaining amount distributed to the county trustee for the county school system, if the city lies entirely in a single county; or“(b ) In the amount the percentage that the 2018-2019 ADA of the students in the city school system is to the 2018-2019 ADA of public school students residing in the city who attend either the city school system or a county school system with the remaining amount divided between the counties based on where the tax was collected and distributed to the county trustees for the county school systems, if the city lies within two (2) or more counties;“(iv) Notwithstanding § 49-3-315, if a city exercises the privilege authorized under § 57-4-301(c), but does not operate a city school system, then to the county trustee for the county school system;“(v) If a special school district lies, in whole or in part, within a city that exercises the privilege authorized under § 57-4-301(c), then to the appropriate official acting for the special school district in the amount the percentage the ADA of public school students residing in the city and attending the special school district is to the total ADA of city public school students who attend either the special school district or the county school system with any remaining amount distributed to the county trustee for the county school system;“(vi) Notwithstanding § 49-3-315, if a county exercises the privilege authorized under § 57-4-301(c) and one (1) or more city school systems operate within the county, then to the county trustee for the county school system any tax revenues collected outside the boundaries of cities exercising the privilege authorized under § 57-4-301(c) that have city school systems; or“(vii) If a city that lies in two (2) or more counties exercises the privilege authorized under § 57-4-301(c) but does not operate a city school system, then tax revenues collected in the city must be divided between the counties based on where the tax was collected and distributed to the county trustees for the county school systems; and“(B) The other one-half (½) of the proceeds shall be distributed as follows:“(i) Collections of gross receipts collected in unincorporated areas, to the county general fund; and“(ii) Collections of gross receipts in incorporated cities and towns, to the city or town wherein such tax is collected.“(3)(A) As used in subdivision (b)(1), “average daily attendance” or “ADA” means:“(i) If the school system was in operation during the 2017-2018 school year, the aggregate days' attendance of the school system during the 2017-2018 school year divided by the number of days school was in session during the 2017-2018 school year; or“(ii) If the school system was not in operation during the 2017-2018 school year, then the estimated expected attendance of the school system for the 2018-2019 school year as reported to the department of education.“(B) As used in subdivision (b)(2), “average daily attendance” or “ADA” means:“(i) If the school system was in operation during the 2018-2019 school year, the aggregate days' attendance of the school system during the 2018-2019 school year divided by the number of days school was in session during the 2018-2019 school year; or“(ii) If the school system was not in operation during the 2018-2019 school year, then the estimated expected attendance of the school system for the 2019-2020 school year as reported to the department of education.”; deleted (c), which read; “(c) After July 1, 2020, the proceeds received in each local political subdivision pursuant to subdivision (a)(2) shall be distributed by the local political subdivision in the following manner:“(1) One-half (½) of the proceeds shall be expended and distributed in the same manner as the county property tax for schools is expended and distributed; any proceeds expended and distributed to municipalities which do not operate their own school systems separate from the county are required to remit one-half (½) of their proceeds of the gross receipts liquor-by-the-drink tax to the county school fund; and“(2) The other one-half (½) of the proceeds shall be distributed as follows:“(A) Collections of gross receipts collected in unincorporated areas, to the county general fund; and“(B) Collections of gross receipts in incorporated cities and towns, to the city or town wherein such tax is collected.” and in (f) and (g) substituted “subsection (b)” for “subsections (b) or (c) as applicable”.

Effective Dates. Acts 2018, ch. 687, § 3. July 1, 2018.

Acts 2018, ch. 959, § 4. January 1, 2019.

Acts 2019, ch. 194, § 3. July 1, 2019.

Acts 2020, ch. 696, § 5, July 1, 2020.

Cross-References. Changes in municipal boundaries, effect upon receipt and distribution of tax revenues, §6-51-115.

Attorney General Opinions. Distribution of tax proceeds in City of Columbia, OAG 94-72 (6/2/94).

Distribution of tax proceeds in Bedford County, OAG 97-143 (10/23/97).

The state can probably continue to distribute state-shared taxes even if the General Assembly does not enact a general appropriations act, OAG 00-083 (5/4/00).

Authority of county school board to compromise or forgive liquor-by-the-drink tax revenue.  OAG 14-22, 2014 Tenn. AG LEXIS 23 (2/26/14).

NOTES TO DECISIONS

1. Construction.

Trial court did not err in finding that former T.C.A. §57-4-306(a)(2)(A) (amended 2014) did not require the cities to share one-half of their liquor-by-the-drink tax revenue with the county's school system where the statute was ambiguous, and based on the surrounding statutory scheme, legislative history, and other authorities, the General Assembly's intent was to require solely those cities that did not operate their own school systems to share the liquor-by-the-drink proceeds with the counties in which they were located. Blount Cty. Bd. of Educ. v. City of Maryville, — S.W.3d —, 2017 Tenn. App. LEXIS 831 (Tenn. Ct. App. Dec. 27, 2017).

Trial court properly granted the cities summary judgment on the county's claim for reimbursement of the funds each city's respective school systems had received as a result of liquor-by-the-drink sales in unincorporated areas of the county given the proper interpretation of T.C.A. §57-4-306(a)(2)(A). Blount Cty. Bd. of Educ. v. City of Maryville, — S.W.3d —, 2017 Tenn. App. LEXIS 831 (Tenn. Ct. App. Dec. 27, 2017).

Upon thorough review of the language of the statute in light of the statutory framework, legislative history, and attorney general's opinions referenced by the legislative history, the Court of Appeals of Tennessee, at Knoxville, holds that the General Assembly's intent in enacting the 1982 Amendment to T.C.A. §57-4-306(a)(2)(A) was to require solely those municipalities that did not operate their own school systems to share liquor-by-the-drink tax proceeds with the counties in which they were located. Wash. Cty. Sch. Sys. v. City of Johnson City, — S.W.3d —, 2017 Tenn. App. LEXIS 832 (Tenn. Ct. App. Dec. 27, 2017).

Court of Appeals of Tennessee, at Knoxville, concludes that because T.C.A. §57-4-103(a)(1) set forth the effectiveness of the entire statutory chapter in which former T.C.A. §57-4-306(a) (amended 2014), was located, §57-4-103(a)(1) operated to classify a local political subdivision receiving liquor-by-the-drink taxes from the Commissioner of Revenue as one that had passed a liquor-by-the-drink referendum. The Court of Appeals further concludes, however, that this did not necessarily exempt a city from the general requirement of §57-4-306(a)(2)(A) of distributing one-half of its liquor-by-the-drink revenue in the manner of county property tax distribution. Wash. Cty. Sch. Sys. v. City of Johnson City, — S.W.3d —, 2017 Tenn. App. LEXIS 832 (Tenn. Ct. App. Dec. 27, 2017).

Under the plain language of former T.C.A. §57-4-306(a)(2)(A) (amended 2014), a city was excluded from the proviso of remitting one-half of its proceeds into the county's school fund when the city operated its own school system. Wash. Cty. Sch. Sys. v. City of Johnson City, — S.W.3d —, 2017 Tenn. App. LEXIS 832 (Tenn. Ct. App. Dec. 27, 2017).

Under former T.C.A. §57-4-306(a)(2)(A) (amended 2014), one-half of the proceeds were to be expended and distributed in the same manner as the county property tax for schools on the condition or understanding that any proceeds expended and distributed to municipalities which did not operate their own school systems separate from the county were required to remit one half of their proceeds of the gross receipts liquor-by-the-drink tax to the county school fund. The clause “which did not operate their own school systems separate from the county” functioned as a restrictive relative clause, restricting the municipalities to which that proviso applied to those that did not operate their own school systems. Wash. Cty. Sch. Sys. v. City of Johnson City, — S.W.3d —, 2017 Tenn. App. LEXIS 832 (Tenn. Ct. App. Dec. 27, 2017).

Under former T.C.A. §57-4-306(a)(2)(A) (amended 2014), one-half of the proceeds were to be expended and distributed in the same manner as the county property tax for schools on the condition or understanding that any proceeds expended and distributed to municipalities which did not operate their own school systems separate from the county were required to remit one half of their proceeds of the gross receipts liquor-by-the-drink tax to the county school fund. The clause “which did not operate their own school systems separate from the county” functioned as a restrictive relative clause, restricting the municipalities to which this proviso applied to those that did not operate their own school systems. Bradley Cty. Sch. Sys. v. City of Cleveland, — S.W.3d —, 2017 Tenn. App. LEXIS 833 (Tenn. Ct. App. Dec. 27, 2017).

Court of Appeals of Tennessee, at Knoxville, concludes that because T.C.A. §57-4-103(a)(1) set forth the effectiveness of the entire statutory chapter in which former T.C.A. §57-4-306(a) (amended 2014) was located, §57-4-103(a)(1) operated to classify a local political subdivision receiving liquor-by-the-drink taxes from the Commissioner of Revenue as one that had passed a liquor-by-the-drink referendum. The Court of Appeals further concludes, however, that this did not necessarily exempt a city from the general requirement of §57-4-306(a)(2)(A) of distributing one-half of its liquor-by-the-drink revenue in the manner of county property tax distribution. Bradley Cty. Sch. Sys. v. City of Cleveland, — S.W.3d —, 2017 Tenn. App. LEXIS 833 (Tenn. Ct. App. Dec. 27, 2017).

Court of Appeals of Tennessee, at Knoxville, determines that as presented to and adopted in the Senate, the legislative intent of the 1982 Amendment to T.C.A. § 57-4306(a)(2)(A) was to correct a situation in which some municipalities that did not operate their own school systems were failing to distribute the statutorily required portion of liquor-by-the-drink gross receipt taxes to the counties whose school systems they utilized. As explained by the Senate sponsor, the intent was not to require municipalities that operated their own school systems to distribute liquor-by-the-drink revenue to the corresponding counties. Bradley Cty. Sch. Sys. v. City of Cleveland, — S.W.3d —, 2017 Tenn. App. LEXIS 833 (Tenn. Ct. App. Dec. 27, 2017).

Upon thorough review of the language of the statute in light of the statutory framework, legislative history, and attorney general's opinions referenced by the legislative history, the Court of Appeals of Tennessee, at Knoxville, holds that the General Assembly's intent in enacting the 1982 Amendment to T.C.A. §57-4-306(a)(2)(A) was to require solely those municipalities that did not operate their own school systems to share liquor-by-the-drink tax proceeds with the counties in which they were located. Bradley Cty. Sch. Sys. v. City of Cleveland, — S.W.3d —, 2017 Tenn. App. LEXIS 833 (Tenn. Ct. App. Dec. 27, 2017).

Court of Appeals of Tennessee, at Knoxville, agrees that under the plain language of former T.C.A. §57-4-306(a)(2)(A) (amended 2014), a city was excluded from the proviso of remitting one-half of its proceeds into a county's school fund when the city operated its own school system. Bradley Cty. Sch. Sys. v. City of Cleveland, — S.W.3d —, 2017 Tenn. App. LEXIS 833 (Tenn. Ct. App. Dec. 27, 2017).

Under former T.C.A. §57-4-306(a)(2)(A) (amended 2014), one-half of the proceeds were to be expended and distributed in the same manner as the county property tax for schools on the condition or understanding that any proceeds expended and distributed to municipalities which did not operate their own school systems separate from the county were required to remit one half of their proceeds of the gross receipts liquor-by-the-drink tax to the county school fund. The clause “which did not operate their own school systems separate from the county” functioned as a restrictive relative clause, restricting the municipalities to which this proviso applied to those that did not operate their own school systems. Sullivan Cty. v. City of Bristol, — S.W.3d —, 2017 Tenn. App. LEXIS 834 (Tenn. Ct. App. Dec. 27, 2017).

Court of Appeals of Tennessee, at Knoxville, agrees that under the plain language of former T.C.A. §57-4-306(a)(2)(A) (amended 2014), cities a excluded from the proviso of remitting one-half of their proceeds into a county's school fund when the cities operated their own school systems. Sullivan Cty. v. City of Bristol, — S.W.3d —, 2017 Tenn. App. LEXIS 834 (Tenn. Ct. App. Dec. 27, 2017).

Court of Appeals of Tennessee, at Knoxville, concludes that because T.C.A. §57-4-103(a)(1) set forth the effectiveness of the entire statutory chapter in which former T.C.A. §57-4-306(a) (amended 2014) was located, §57-4-103(a)(1) operated to classify a local political subdivision receiving liquor-by-the-drink taxes from the Commissioner of Revenue as one that had passed a liquor-by-the-drink referendum. The Court of Appeals further concludes, however, that this did not necessarily exempt the cities from the general requirement of former T.C.A. §57-4-306(a)(2)(A) (amended 2014) of distributing one-half of their respective liquor-by-the-drink revenue in the manner of county property tax distribution. Sullivan Cty. v. City of Bristol, — S.W.3d —, 2017 Tenn. App. LEXIS 834 (Tenn. Ct. App. Dec. 27, 2017).

Upon thorough review of the language of the statute in light of the statutory framework, legislative history, and attorney general's opinions referenced by the legislative history, the Court of Appeals of Tennessee, at Knoxville, holds that the General Assembly's intent in enacting the 1982 Amendment to T.C.A. §57-4-306(a)(2)(A) was to require solely those municipalities that did not operate their own school systems to share liquor-by-the-drink tax proceeds with the counties in which they were located. Sullivan Cty. v. City of Bristol, — S.W.3d —, 2017 Tenn. App. LEXIS 834 (Tenn. Ct. App. Dec. 27, 2017).

Court of Appeals of Tennessee, at Knoxville, determines that as presented to and adopted in the Senate, the legislative intent of the 1982 Amendment to T.C.A. §57-4-306(a)(2)(A) was to correct a situation in which some municipalities that did not operate their own school systems were failing to distribute the statutorily required portion of liquor-by-the-drink gross receipt taxes to the counties whose school systems they utilized. As explained by the Senate sponsor, the intent was not to require municipalities that operated their own school systems to distribute liquor-by-the-drink revenue to the corresponding counties. Sullivan Cty. v. City of Bristol, — S.W.3d —, 2017 Tenn. App. LEXIS 834 (Tenn. Ct. App. Dec. 27, 2017).

Pre-2014 local education provision required a municipality with its own school system to expend and distribute half of its liquor by the drink tax proceeds in the same manner that the county property tax for schools was expended and distributed within the municipality, which was for the benefit of the municipality's own school system. Coffee Cty. Bd. of Educ. v. City of Tullahoma, — S.W.3d —, 2019 Tenn. LEXIS 174 (Tenn. May 8, 2019).

2. Allocation of Funds.

County board of education, which was located in a county in which the voters of the county had not authorized the sale of liquor by the drink within the county, was entitled to recover a share of liquor by the drink tax revenues from a city within the county in which the voters of the city had authorized the sale of liquor by the drink within the city. Specifically, the county was entitled to one-half of the 50 percent (25 percent) allocated by the Commissioner of Revenue for Tennessee to the city. Coffee Cty. Bd. of Educ. v. City of Tullahoma, — S.W.3d —, 2018 Tenn. App. LEXIS 29 (Tenn. Ct. App. Jan. 23, 2018).

Because the city has its own school system, the court held that it was permitted to use half of its liquor by the drink tax proceeds for its own school system, and it was not required to share those proceeds with the county or the county schools, and therefore the appellate court erred by reversing the trial court's grant of summary judgment for the city. Coffee Cty. Bd. of Educ. v. City of Tullahoma, — S.W.3d —, 2019 Tenn. LEXIS 174 (Tenn. May 8, 2019).

In an action filed by a county against cities based on the cities' failure to share the proceeds of liquor by the drink (LBD) tax proceeds with the county, the court held that the liquor-by-the-drink tax distribution statute did not require the cities to share half of their LBD tax proceeds with the county and other school systems in the county pro rata, but rather, the local education provision directed the cities to expend and distribute the education portion of their LBD tax proceeds in support of their own municipal school systems. Sullivan Cty. v. City of Bristol, — S.W.3d —, 2019 Tenn. LEXIS 175 (Tenn. May 8, 2019).

Liquor-by-the-drink tax distribution statute did not require the city to share half of its liquor by the drink (LBD) tax proceeds with the county and other school systems in the county pro rata, but rather, the local education provision directed the city to expend and distribute the education portion of its LBD tax proceeds in support of its own municipal school system, and therefore the appellate court properly reversed the trial court's entry of summary judgment in favor of the county. Wash. Cty. Sch. Sys. v. City of Johnson City, — S.W.3d —, 2019 Tenn. LEXIS 176 (Tenn. May 8, 2019).

Liquor-by-the-drink tax distribution statute did not require the city to share half of its liquor by the drink (LBD) tax proceeds with the county and other school systems in the county pro rata, but rather, the local education provision directed the city to expend and distribute the education portion of its LBD tax proceeds in support of its own municipal school system. The court's conclusion applied to all LBD tax proceeds paid to the city, those generated from pre-2002 referendum LBD tax proceeds from private club sales as well as those generated post-referendum. Bradley Cty. Sch. Sys. v. City of Cleveland, — S.W.3d —, 2019 Tenn. LEXIS 177 (Tenn. May 8, 2019).

Liquor-by-the-drink tax distribution statute did not require the Commissioner of the Tennessee Department of Revenue to pay half of the cities'  liquor by the drink (LBD) tax proceeds directly to the county trustee and that the cities were not required to distribute half of their LBD tax proceeds pro rata among the county school system and the other school systems in the county, but rather, the local education provision directed the cities to expend and distribute the education portion of their LBD tax proceeds in support of their own municipal school systems. Blount Cty. Bd. of Educ. v. City of Maryville, — S.W.3d —, 2019 Tenn. LEXIS 178 (Tenn. May 8, 2019).

County's argument that if the cities were not required to share their liquor by the drink (LBD) tax proceeds under this section then the county was not required to share its LBD tax proceeds from sales at private clubs with the cities was rejected because the disparity was understandable, because the citizens of the cities were necessarily also citizens of the county, but the citizens of the county that lived outside the cities were not citizens of the cities. Blount Cty. Bd. of Educ. v. City of Maryville, — S.W.3d —, 2019 Tenn. LEXIS 178 (Tenn. May 8, 2019).

57-4-307. Damaged or unaccepted goods — Liability for tax.

When any common carrier transporting alcoholic beverages to a point within this state, or any insurance company insuring such alcoholic beverages, comes into possession of such alcoholic beverages by virtue of the same being damaged or otherwise unaccepted by the consignee of such alcoholic beverages, such common carrier or insurance company shall become liable for the tax imposed under this chapter, unless proof deemed satisfactory to the commissioner is furnished to the commissioner by such carrier or insurer showing that such alcoholic beverages have been destroyed or shipped to a point without this state and, therefore, have not been sold or consumed in this state.

Acts 1971, ch. 150, § 1; T.C.A., § 57-169.

57-4-308. Violation a misdemeanor.

Any violation of this chapter is a misdemeanor and punishable as such.

Acts 1967, ch. 211, § 3; T.C.A., § 57-163.

Compiler's Notes. The misdemeanor penalty provisions in this section may have been affected by the Criminal Sentencing Reform Act of 1989. See §§39-11-114,40-35-110,40-35-111.

Chapter 5 Beer

Part 1 General Provisions

57-5-101. Traffic in alcoholic beverages of less than eight percent (8%) permitted — Brewers' and wholesalers' interests restricted.

    1. It is lawful in this state to transport, store, sell, distribute, possess, receive, or manufacture beer, as defined in subsection (b), subject to the privilege taxes and regulations set out and provided for in this part.
    2. Except as otherwise provided for in this part, no brewer or manufacturer of beer shall have any financial or ownership interest, direct or indirect, in the business of or a building containing a wholesale or retail licensee, including to furnish or loan any fixtures of any kind to a retail licensee, and no such brewer or manufacturer shall hold a wholesale or retail license. For purposes of this section, an indirect interest includes any interest acquired by affiliates, subsidiaries, corporate officials, partners, or employees of the brewer or manufacturer.
    3. Except as otherwise provided for in this part, no wholesaler shall hold any financial or ownership interest, direct or indirect, in the business of or a building containing a brewer, manufacturer, or retail licensee, including to furnish or loan any fixtures of any kind to a retail licensee, and no such wholesaler shall hold a manufacturer or retail license.
  1. For purposes of this title, “beer” means beer, ale or other malt beverages, or any other beverages having an alcoholic content of not more than eight percent (8%) by weight, except wine as defined in § 57-3-101; provided, however, that no more than forty-nine percent (49%) of the overall alcoholic content of such beverage may be derived from the addition of flavors and other nonbeverage ingredients containing alcohol.
    1. Upon meeting necessary federal, state and local license requirements, notwithstanding the prohibition of subsection (a), a manufacturer:
      1. May operate as a retailer at the manufacturer's location or a site contiguous thereto for sales of not more than twenty-five thousand (25,000) barrels of beer or high alcohol content beer or both annually for consumption on or off the premises under this chapter as long as the requirements of this chapter concerning the licensing of such retail establishments are met; and
      2. May qualify for and hold a license:
        1. Under chapter 4 of this title as a “restaurant” or “limited service restaurant”; provided, that notwithstanding chapter 4 of this title related to restrictions or prohibitions on licensees under chapter 4, a restaurant or limited service restaurant may sell for off-premises consumption beer manufactured pursuant to this section at such location or at any other restaurant or limited service restaurant licensed under chapter 4 that is owned by the same person; or
        2. As a hotel as defined under § 57-4-102(21)(F)(iii); provided, that the hotel licensee shall only sell beer manufactured pursuant to this section on the premises of the hotel.
    2. A manufacturer operating as a retailer pursuant to subdivision (c)(1)(A) may not sell its beer directly to retailers that are located in a county other than the county in which the manufacturer is located. Notwithstanding any law to the contrary, any transfer or sale by a manufacturer operating as a retailer to an off-site retailer's location shall constitute a wholesale sale.
  2. Notwithstanding the prohibitions and restrictions on a manufacturer's financial and ownership interests imposed in subsection (a), a manufacturer may have a financial or ownership interest in a licensed wholesaler's business; provided, however, that the financial or ownership interest in the licensed wholesaler's business is maintained or held only for a one-time period not to exceed five (5) years, which may not be directly or indirectly extended or renewed, and only under the following circumstances and conditions:
    1. When a licensed wholesaler is voluntarily selling its distribution rights, and the manufacturer whose brand distribution rights are being sold seeks to assist the sale by taking a noncontrolling financial interest in the purchasing wholesaler in the form of a loan made contemporaneous with the sale and secured by the inventory and assets, except for the corporate stock, of the purchasing wholesaler; or
    2. When, only for reasons permitted under § 57-5-505, § 57-5-506, or § 57-5-507, a distribution agreement between a manufacturer and a wholesaler is not renewed or is otherwise terminated, cancelled, or discontinued, in which event a manufacturer is authorized to appoint a temporary licensed wholesaler to service the manufacturer's brands in the designated sales territory and to take a financial or ownership interest in the temporary licensed wholesaler in connection with the appointment.
    1. Notwithstanding this section to the contrary, a wholesaler that has continuously held a valid wholesale distribution permit, issued pursuant to this section for a period of at least six (6) months prior to March 27, 2015, and has held a direct or indirect interest in a brewer or manufacturer, continuously during that period of time, and holds a trademark or marketing rights to a brand or brands of beer, may continue to hold the interest, and may expand the interest to effect the brewing, bottling, and sales of beer in which the wholesaler holds the trademark or marketing rights.
    2. It is the intent of the general assembly that this subsection (e) be prospective only and not be applicable to compel the divestiture of trademark or marketing rights or a direct or indirect interest held by a wholesaler for the six-month period prior to March 27, 2015.
  3. For purposes of this section, “manufacturer” means:
    1. A holder of a license to manufacture or import beer;
    2. An officer, director, agent, or employee of such a license holder; or
    3. An affiliate of such a license holder, regardless of whether the affiliation is corporate or by management, direction, or control.

Acts 1933, ch. 69, § 1; 1935, ch. 170, § 2; C. Supp. 1950, § 1191.1; T.C.A. (orig. ed.), § 57-201; Acts 1983, ch. 229, § 7; 1990, ch. 906, § 1; 1991, ch. 214, §§ 1, 2; 1992, ch. 800, §§ 1, 2; 1993, ch. 227, § 1; 1993, ch. 297, § 1; 1995, ch. 395, §§ 1-6; 2004, ch. 956, §§ 1, 2; 2005, ch. 298, §§ 2, 3; 2009, ch. 290, §§ 1, 2; 2013, ch. 386, §§ 1, 3; 2014, ch. 861, §§ 2, 17. 2015, ch. 19, §§ 1, 2; 2015, ch. 176, § 1.

Compiler's Notes. For tables of U.S. decennial populations of Tennessee counties, see Volume 13 and its supplement.

Cross-References. Privilege tax on manufacture of intoxicants with alcoholic content of more than five percent, §§57-2-101.

Textbooks. Tennessee Jurisprudence, 7 Tenn. Juris., Contracts, § 117; 16 Tenn. Juris., Intoxicating Liquors, §§ 5, 6, 9, 28.

Law Reviews.

Preferences, Priorities, and Powers of the State in the Collection of Delinquent Revenue: Tennessee's Tax Enforcement Procedures Act (Donald J. Serkin), 8 Mem. St. U.L. Rev. 707.

Attorney General Opinions. Fees for background checks of employees of beer licensees, OAG 97-077 (5/21/97).

A beer manufacturer may operate as a retailer under T.C.A. §57-5-101(c)(1)(A) and at the same time hold a restaurant license pursuant to T.C.A. §57-5-101(c)(1)(B), OAG 00-087 (5/5/00).

If a beer manufacturer holds a restaurant permit under the provisions of title 57, chapter 4, as allowed by T.C.A. §57-5-101(c)(1)(B), it will also be able to obtain a retail beer permit for the restaurant premises, OAG 00-087 (5/5/00).

A beer manufacturer may not sell, give, or otherwise transfer beer to a beer retailer or restaurant that sells beer where the manufacturer has a direct or indirect interest in the retailer or restaurant, OAG 00-087 (5/5/00).

The statute prohibits the sale of beer by a manufacturer at a site it owns that is non-contiguous with its manufacturing facility, OAG 00-087 (5/5/00).

The statute does not allow for different distance standards to be adopted and applied to different types of establishments that sell beer; only one distance standard may be established and it must apply to all establishments selling beer, whether for consumption on or off the premises, OAG 01-157 (10/25/01).

The legality of an exclusive sponsorship agreement whereby an alcoholic beverage manufacturer or other industry member would pay to sponsor an event in exchange for an agreement that the sponsor’s product will be served exclusively at the event would depend on the specific facts of the agreement and the status of the parties to the agreement, including whether the parties are licensed wholesalers or retailers and whether the agreement involves alcoholic beverages or beer. OAG 18-35, 2018 Tenn. AG LEXIS 34 (7/30/2018).

NOTES TO DECISIONS

1. Nature and Effect.

This chapter does not confer an absolute right on everyone to sell beer, but restricts it to those who obtain permits to pay the required tax. McHenry v. State, 168 Tenn. 667, 80 S.W.2d 655, 1934 Tenn. LEXIS 97 (1935).

The burden of proof is on the defendant charged with selling intoxicating liquor to show that liquor sold constitutes “beer or other like beverage.” McHenry v. State, 168 Tenn. 667, 80 S.W.2d 655, 1934 Tenn. LEXIS 97 (1935).

This chapter is in the nature of a local option law in that the legislature intended that each municipality looking to the morals and general welfare of its citizens should have a wide discretion not only regulating the traffic in beer but in determining to whom licenses should be issued for that purpose. Cravens v. Storie, 175 Tenn. 285, 133 S.W.2d 609, 1939 Tenn. LEXIS 39 (1939).

This chapter is dual in character in that it is both a police power measure and a revenue measure. Henderson v. Grundy County Beer Committee, 176 Tenn. 397, 141 S.W.2d 901, 1939 Tenn. LEXIS 130 (1940).

Since this section expressly legalizes the receipt and possession of beer subject to the regulations of this chapter and this chapter prescribes no regulations for the receipt and possession thereof, such receipt and possession cannot be considered illegal. Holbert v. State, 178 Tenn. 80, 156 S.W.2d 388, 1941 Tenn. LEXIS 33 (1941).

The beer statutes do not confer absolute rights but are conditional and in effect are local option statutes. Grubb v. Morristown, 185 Tenn. 114, 203 S.W.2d 593, 1947 Tenn. LEXIS 310 (1947); State ex rel. Camper v. Pollard, 189 Tenn. 86, 222 S.W.2d 374, 1949 Tenn. LEXIS 404 (1949), superseded by statute as stated in, Howard v. Willocks, 525 S.W.2d 132, 1975 Tenn. LEXIS 652 (Tenn. 1975).

The business of selling beer is subject to unlimited restrictions and such restrictions even to the extent of a prohibition are not “unreasonably oppressive,” or discriminatory, and do not violate any civil right of beer licensees. Grubb v. Morristown, 185 Tenn. 114, 203 S.W.2d 593, 1947 Tenn. LEXIS 310 (1947); Ketner v. Clabo, 189 Tenn. 260, 225 S.W.2d 54, 1949 Tenn. LEXIS 423 (1949).

The statute leaves large discretion to the local authorities in the issuance and revocation of permits. Fentress County Beer Board v. Cravens, 209 Tenn. 679, 356 S.W.2d 260, 1962 Tenn. LEXIS 404 (1962).

Amendment to T.C.A. §57-5-105 (formerly 57-205), giving courts the right to review a municipality's refusal of a permit to sell beer through the statutory writ of certiorari, with trial de novo, does not make it mandatory upon a municipality to grant more permits than the city deems advisable. De Caro v. Collierville, 213 Tenn. 254, 373 S.W.2d 466, 1963 Tenn. LEXIS 485 (1963).

In denying a permit to sell beer to a grocery store, based upon the feeling that the morals and general welfare of the city would best be served by limiting the number of permits granted, the municipal beer board did not act arbitrarily and discriminatorily. De Caro v. Collierville, 213 Tenn. 254, 373 S.W.2d 466, 1963 Tenn. LEXIS 485 (1963).

City and county beer board had no authority to deny a company's second license application on the basis that its new building contravened Metro. Gov't Nashville & Davidson County, Tenn., Code Laws § 7.08.090(A)(1)'s 100-foot proximity requirement because doing so contravened T.C.A. §57-9-105 as amended and exceeded the board's statutory authority. Exxonmobil Oil Corp. v. Metro. Gov't of Nashville & Davidson County, 246 S.W.3d 31, 2005 Tenn. App. LEXIS 375 (Tenn. Ct. App. June 28, 2005), appeal denied, — S.W.3d —, 2005 Tenn. LEXIS 1143 (Tenn. 2005).

2. Relation to Liquor Statutes.

Where, prior to obtaining a license to sell beer, the licensee, within the period of 10 years, was guilty of violation of the former “bone dry law,” such fact did not operate to revoke his license to sell beer, thus rendering him liable for selling beer without a license so to do. Richmond v. State, 171 Tenn. 1, 100 S.W.2d 1, 1936 Tenn. LEXIS 52 (1936).

Conviction for the receipt and possession of intoxicating liquor could not be supported by evidence that defendant was storing beer for purposes of sale without complying with the provisions of this chapter. Holbert v. State, 178 Tenn. 80, 156 S.W.2d 388, 1941 Tenn. LEXIS 33 (1941).

The provisions of this chapter regulating storage and possession of beer did not repeal §57-9-111 outlining procedure for recovery of seized beer by owners. Young v. Chumley, 189 Tenn. 322, 225 S.W.2d 77, 1949 Tenn. LEXIS 432 (1949).

57-5-102. Registration of manufacturers and wholesale distributors.

  1. Every person, firm, corporation, joint-stock company, syndicate or association in this state engaging in the manufacture or wholesale distribution of beer shall be required to first register its name and address, by mail or in person, at the office of the commissioner of revenue and to receive and keep posted at its usual place of business a certificate of registration bearing a serial number, which serial number shall be assigned to such person, firm, corporation, joint-stock company, syndicate or association in this state by the commissioner. The registration shall be made and certificate of registration received and posted before commencement of any business as described herein.
  2. Cost of such registration is fixed at twenty dollars ($20.00) for wholesalers and forty dollars ($40.00) for manufacturers, to be paid by the applicant before a certificate is issued. Such certificate must be renewed annually on or before January 1, upon the payment of the aforementioned registration fees.
  3. Any person required by this section to be registered who shall fail to register with the commissioner within twenty (20) days after entering business, or who shall fail to obtain a renewal of such registration for the current year by January 20 thereof, shall have added to the cost of registration a specific penalty of five dollars ($5.00) a month for each month or fractional part thereof during which such failure continues, but not to exceed an amount equal to the registration fee.
  4. The proceeds of these fees shall be divided equally, one-half (½) to the department and one-half (½) to the Tennessee highway patrol, and shall be accredited to the expendable receipts account of such departments in order that same may be available for the purpose of enforcing this chapter.
  5. In addition to the specific mandatory penalty provided for hereinabove, any person who shall engage in any business or activity for which a certificate of registration is knowingly required from the commissioner under this chapter without first having obtained such a certificate, or who, having obtained such a certificate, shall continue to engage in and/or conduct such business or activity after such certificate shall have been revoked or who does so during a suspension thereof, shall be liable to a discretionary penalty of not more than one hundred dollars ($100) to be imposed by the commissioner at the commissioner's discretion. Such penalty shall be collected in the manner otherwise provided for the collection of taxes and penalties and distributed in the manner provided hereinabove. Each day that such business or activity is so engaged in or conducted may be deemed a separate offense by the commissioner at the commissioner's discretion upon determination that the circumstances warrant.
  6. Every person, firm, corporation, joint-stock company, syndicate or association, before being permitted to store, sell, distribute and/or manufacture beer shall pay such license, and comply with such regulations and ordinances as may be passed by the county courts of the counties and/or enacted by the proper municipal authorities of the cities or towns where such person, firm, corporation, joint-stock company, syndicate or association may do business in the manner hereinafter provided.

Acts 1933, ch. 69, § 5; 1937, ch. 198, § 1; 1943, ch. 53, § 1; mod. C. Supp. 1950, § 1191.5; impl. am. Acts 1959, ch. 9, § 14; Acts 1972, ch. 448, § 1; 1973, ch. 68, § 6; 1974, ch. 478, § 1; T.C.A. (orig. ed.), § 57-202; Acts 1985, ch. 315, § 1; 1993, ch. 297, § 2.

57-5-103. Permit from county or city required — Online sale for curbside pickup — Classification of counties — Purchases of beer “for resale.”

    1. It is unlawful to operate any business engaged in the sale, distribution, manufacture, or storage of beer without a permit issued by the county or city where such business is located under the authority herein delegated to counties and cities.
    2. Permits shall be issued to the owner of the business or other entity responsible for the premises for which the permit is sought, whether a person, firm, corporation, joint-stock company, syndicate, association, or local governmental entity where the governing body has authorized such sales of beer.
    3. A permit shall be valid:
      1. Only for the owner to whom the permit is issued and cannot be transferred to another owner. If the owner is a corporation, a change in ownership shall occur when control of at least fifty percent (50%) of the stock of the corporation is transferred to a new owner;
      2. Only for a single location, except as provided in subdivision (a)(4), and cannot be transferred to another location. A permit shall be valid for all decks, patios and other outdoor serving areas that are contiguous to the exterior of the building in which the business is located and that are operated by the business; and
      3. Only for a business operating under the name identified in the permit application.
    4. Where an owner operates two (2) or more restaurants or other businesses within the same building, the owner may in the owner's discretion operate some or all such businesses pursuant to the same permit.
    5. A business can sell beer for both on-premises and off-premises consumption at the same location pursuant to one (1) permit.
    6. A permit holder must return a permit to the county or city that issued it within fifteen (15) days of termination of the business, change in ownership, relocation of the business or change of the business's name; provided, that notwithstanding the failure to return a beer permit, a permit shall expire on termination of the business, change in ownership, relocation of the business or change of the business's name.
    7. In the case of beer wholesalers, as defined in § 57-6-102, no county or city shall require a permit from a wholesaler unless such wholesaler operates a warehouse in such county or city.
    8. Any person, firm, corporation, joint-stock company, syndicate, or association engaged in the sale, distribution, or manufacture of beer without the permit required by this part commits a Class A misdemeanor.
    9. Nothing in this chapter shall be construed as granting counties or cities the authority to require the periodic renewal of beer permits.
    10. After July 1, 2015, a city or county shall not issue a permit under this chapter unless the applicant has been a citizen or lawful resident of the United States for not less than one (1) year immediately preceding the date upon which the application is made to the city or county.
    11. A permit holder may sell beer online for curbside pickup at the permit holder's location. Purchased beer must be delivered to the customer's vehicle, and the vehicle must be located within a paved parking area adjacent to the place of business. Beer sold through an online curbside pickup service must be pulled from the inventory located at the permitted location of the retailer providing the service and may not be pulled from the inventory of another retailer or permitted location. Any employee bringing beer to a vehicle for online curbside pickup must confirm the individual receiving the beer is at least twenty-one (21) years of age.
  1. For the purpose of licensing, regulating and controlling the transportation, storage, sale, distribution, possession, receipt and/or manufacture of beer pursuant to this chapter, the counties of the state shall be classified in two (2) categories, one (1) of which is hereby designated Class A counties consisting of those counties not governed by metropolitan governments as defined in § 7-2-101, and the other category is hereby designated Class B counties consisting of those counties governed by metropolitan governments as defined in § 7-2-101.
  2. When either “county” or “counties” is used in this chapter, it means counties generally without reference to the classification of counties provided for in this section, and the use of “county” or “counties” shall cause the provision limited by the word “county” or “counties” to apply equally to Class A counties and to Class B counties. When “county legislative body” or “county legislative bodies” is used in this chapter, it means “metropolitan council” or “metropolitan councils” when applicable to Class B counties.
    1. It is unlawful for any person to sell, distribute or manufacture beer without having a valid certificate indicating that purchases of beer by that person are “for resale” as that term is used in § 67-6-102(75)(A).
    2. Within ten (10) days after being issued a permit to sell, distribute or manufacture beer, a person shall file with the county or city issuing the permit and with each person from whom the person buys beer a copy of a valid certificate indicating that the purchases of beer are “for resale” as that term is used in § 67-6-102(75)(A), and shall subsequently maintain at all times a valid resale certificate on file with the county or city issuing the permit and with each person from whom the person buys beer.
  3. A city or county is authorized to seek criminal history background or fingerprint checks on applicants. Criminal background checks may include fingerprint checks against state and federal criminal records maintained by the Tennessee bureau of investigation and the federal bureau of investigation. The Tennessee bureau of investigation is authorized to assess fees for the searches in accordance with the fee schedule established by the bureaus.
  4. Notwithstanding any law to the contrary, no city or county shall deny the issuance or renewal of a permit upon the basis that the lease between the business and its municipal landlord includes a provision whereby gross sales, which may include or exclude liquor sales, are considered in the determination of a percentage rent or other rent calculation provision.

Acts 1933, ch. 69, § 9c; C. Supp. 1950, § 1191.12; Acts 1963, ch. 76, § 1; 1965, ch. 321, § 1; 1974, ch. 478, § 2; impl. am. Acts 1978, ch. 934, §§ 7, 36; T.C.A. (orig. ed.), § 57-204; Acts 1983, ch. 386, § 1; 1987, ch. 254, § 1; 1991, ch. 424, § 1; 1993, ch. 297, § 4; T.C.A., §57-5-104; Acts 1996, ch. 641, § 2; 2009, ch. 314, § 1; 2010, ch. 1002, § 1; 2014, ch. 754, § 1; 2015, ch. 29, § 1; 2018, ch. 944, § 3; 2019, ch. 377, § 3; 2020, ch. 704, § 1.

Compiler's Notes. Former §57-5-103, concerning permits to aliens, was transferred to §57-5-104 in 1993.

Pursuant to Article III, Section 18 of the Constitution of Tennessee, Acts 2014, ch. 754 took effect on April 21, 2014.

Amendments. The 2018 amendment substituted “local governmental entity” for “governmental entity” in (a)(2).

The 2019 amendment added (f).

The 2020 amendment added (a)(11).

Effective Dates. Acts 2018, ch. 944, § 4. May 15, 2018.

Acts 2019, ch. 377, § 4. May 10, 2019.

Acts 2020, ch. 704, § 2, June 22, 2020.

Cross-References. Penalty for Class A misdemeanor, §40-35-111.

Textbooks. Tennessee Jurisprudence, 16 Tenn. Juris., Intoxicating Liquors, §§ 5-7, 9, 10, 16, 21.

Law Reviews.

Judicial Review and the Uniform Administrative Procedures Act (Toxey H. Sewell), 6 Mem. St. U.L. Rev. 253.

Attorney General Opinions. A clubhouse or restaurant beer permit holder located on a golf course cannot sell beer to individuals on the course itself, away from the building, under any circumstances, OAG 01-117 (7/24/01).

Prohibiting the sale of beer through drive-up windows.  OAG 10-113, 2010 Tenn. AG LEXIS 119 (11/18/10).

As a municipal corporation the city of Clarksville cannot obtain a license to sell liquor by the drink at any location or sell alcoholic beverages or beer to either private party lessees and guests or to the general public; no city employee or nonprofit corporation created or controlled by the city may obtain a permit to sell liquor by the drink or obtain a beer permit on behalf of the city.  OAG 14-03, 2014 Tenn. AG LEXIS 5 (1/9/14)

The durational citizenship/residency requirement imposed by 2015 Tenn. Pub. Acts, Chapter 29 for the issuance of a beer permit is unlikely to pass constitutional muster. OAG 16-09, 2016 Tenn. AG LEXIS 9 (3/4/2016).

NOTES TO DECISIONS

1. Nature of Permit.

A permit to engage in the manufacture or sale of beer or other intoxicating liquors is in the nature of a mere permit which creates no vested or property rights, and the traffic is at all times subject to the control of the state, or by delegation of its power to its political subdivisions such as counties or municipalities, in the exercise of the police power. Henderson v. Grundy County Beer Committee, 176 Tenn. 397, 141 S.W.2d 901, 1939 Tenn. LEXIS 130 (1940).

2. Persons Required to Obtain Permit.

Person employed by licensee to operate business in consideration of 50 percent of profits realized from business was not required to obtain a license, since sharing in profits was not sufficient to change status from that of employee to that of partner. Stewart v. State, 190 Tenn. 334, 229 S.W.2d 504, 1950 Tenn. LEXIS 489 (1950).

3. Issuance of Permit.

Refusal of beer committee to sign or authorize the issuance of a beer license did not invade the constitutional rights of the individual seeking such license. State ex rel. Cravens v. Delk, 175 Tenn. 614, 136 S.W.2d 524, 1939 Tenn. LEXIS 81 (1940).

There is nothing in this chapter making it mandatory upon any beer board or licensing authority to issue a beer permit or whiskey license to anyone. Grubb v. Morristown, 185 Tenn. 114, 203 S.W.2d 593, 1947 Tenn. LEXIS 310 (1947); Ketner v. Clabo, 189 Tenn. 260, 225 S.W.2d 54, 1949 Tenn. LEXIS 423 (1949). See State ex rel. Camper v. Pollard, 189 Tenn. 86, 222 S.W.2d 374, 1949 Tenn. LEXIS 404 (1949), superseded by statute as stated in, Howard v. Willocks, 525 S.W.2d 132, 1975 Tenn. LEXIS 652 (Tenn. 1975).

Municipality has absolute discretion in regulation and control of beer permits. Ketner v. Clabo, 189 Tenn. 260, 225 S.W.2d 54, 1949 Tenn. LEXIS 423 (1949).

A city does not have more power than a county to issue licenses, but does have more power to place restrictions upon the issuance of licenses. Mapco Petroleum, Inc. v. Basden, 774 S.W.2d 598, 1989 Tenn. LEXIS 393 (Tenn. 1989).

4. —Hearing.

Applicant for beer permit was not entitled to a formal hearing before beer committee since legislature, by providing for hearing on revocation of permit and not providing for a hearing on an application for a permit, indicated that it did not intend to grant applicant a hearing on application for a permit. State ex rel. Camper v. Pollard, 189 Tenn. 86, 222 S.W.2d 374, 1949 Tenn. LEXIS 404 (1949), superseded by statute as stated in, Howard v. Willocks, 525 S.W.2d 132, 1975 Tenn. LEXIS 652 (Tenn. 1975).

5. —Mandamus.

Mandamus would not lie to force the beer committee of a county legislative body to authorize the issuance of a beer license where there was no showing that the committee acted illegally or arbitrarily. State ex rel. Cravens v. Delk, 175 Tenn. 614, 136 S.W.2d 524, 1939 Tenn. LEXIS 81 (1940).

Mandamus to compel county beer committee to issue license was refused where there was no evidence showing an abuse of discretion by beer committee in refusing license. State ex rel. Simmons v. Latimer, 186 Tenn. 577, 212 S.W.2d 386, 1948 Tenn. LEXIS 583 (1948).

Beer committee cannot be compelled to issue beer permit by a writ of mandamus. State ex rel. Camper v. Pollard, 189 Tenn. 86, 222 S.W.2d 374, 1949 Tenn. LEXIS 404 (1949), superseded by statute as stated in, Howard v. Willocks, 525 S.W.2d 132, 1975 Tenn. LEXIS 652 (Tenn. 1975); Ketner v. Clabo, 189 Tenn. 260, 225 S.W.2d 54, 1949 Tenn. LEXIS 423 (1949).

6. — —Attorney's Fees.

Attorney representing beer committee on appeal of proceeding in mandamus by applicant who was refused a permit was required to present matter of fee to county legislative body since county was not before the supreme court. State ex rel. Camper v. Pollard, 189 Tenn. 86, 222 S.W.2d 374, 1949 Tenn. LEXIS 404 (1949), superseded by statute as stated in, Howard v. Willocks, 525 S.W.2d 132, 1975 Tenn. LEXIS 652 (Tenn. 1975).

7. —Review.

Beer committees and similar boards and commissions are vested with large discretion and the courts will not review their action unless it appears that they have acted arbitrarily or illegally. State ex rel. Cravens v. Delk, 175 Tenn. 614, 136 S.W.2d 524, 1939 Tenn. LEXIS 81 (1940); State ex rel. Burkhart v. Coldwell, 185 Tenn. 572, 206 S.W.2d 795, 1947 Tenn. LEXIS 358 (1947).

The issuance or denial of beer permits, either by the county legislature bodies, or committees appointed by such bodies, or municipalities, or investigating boards, shall not be reviewed by a de novo hearing in the circuit or chancery courts of the state. Owings v. Wasson, 188 Tenn. 416, 219 S.W.2d 908, 1949 Tenn. LEXIS 354 (1949).

The action of a board or commission in denying an application for a permit to sell beer, pursuant to this chapter may be reviewed only by the common-law writ of certiorari, and not by the statutory writ provided in title 27, ch. 9. Owings v. Wasson, 188 Tenn. 416, 219 S.W.2d 908, 1949 Tenn. LEXIS 354 (1949).

8. Use of Another's Permit.

Sale of beer by defendant under a permit issued another person who had formerly operated place did not make defendant's sale of beer legal. McBride v. State, 195 Tenn. 308, 259 S.W.2d 533, 1953 Tenn. LEXIS 341 (1953).

9. Transferability of Permits.

A permit to sell beer is not transferable by merger and does not pass to a surviving corporation, and a new permit must be sought in the name of the new entity. Mapco Petroleum, Inc. v. Basden, 774 S.W.2d 598, 1989 Tenn. LEXIS 393 (Tenn. 1989).

10. State's Power to Regulate Establishments Holding a Permit.

The state has the power to prohibit certain acts involving exposure of parts of the body and to restrict the area where performers may perform in establishments holding a beer license, under U.S. const., amend. 21, and under New York State Liquor Auth. v. Bellanca, 452 U.S. 714, 101 S. Ct. 2599, 69 L. Ed. 2d 357, 1981 U.S. LEXIS 119 (1981). PP & C, Inc. v. Metropolitan Beer Permit Bd., 833 S.W.2d 90, 1992 Tenn. App. LEXIS 91 (Tenn. Ct. App. 1992).

A metropolitan government need only have a rational basis for its decision to prohibit certain acts in establishments selling beer when the same prohibition does not extend to all public places. PP & C, Inc. v. Metropolitan Beer Permit Bd., 833 S.W.2d 90, 1992 Tenn. App. LEXIS 91 (Tenn. Ct. App. 1992).

57-5-104. Application fee — Privilege tax — Permits.

  1. Each applicant for a permit required by § 57-5-103 shall be required to pay an application fee of two hundred fifty dollars ($250) to the county or city in which the applicant's place of business is located. No portion of the fee shall be refunded to the applicant, notwithstanding whether an application is approved or denied.
    1. There is hereby imposed on the business of selling, distributing, storing or manufacturing beer in this state a privilege tax of one hundred dollars ($100), notwithstanding § 57-6-112.
    2. Any person, firm, corporation, joint-stock company, syndicate or association engaged in selling, distributing, storing or manufacturing beer shall remit the tax on January 1 to the county or city in which such business is located. The tax shall be remitted to the county clerk for businesses located in the county outside the incorporated limits of any city or town, and to the official identified by the city or town in the notice required by subdivision (b)(3) for businesses located within the incorporated limits of the city or town.
    3. Counties and cities shall mail written notice to each permit holder of the payment date of the annual tax at least thirty (30) days prior to January 1. Notice shall be mailed to the address specified by the permit holder on its permit application. If a permit holder does not pay the tax by January 31 or within thirty (30) days after written notice of the tax was mailed, whichever is later, then the county or city shall notify the permit holder by certified mail that the tax payment is past due. If a permit holder does not pay the tax within ten (10) days after receiving notice of its delinquency by certified mail, then the county or city may suspend or revoke the permit or impose a civil penalty pursuant to § 57-5-108.
    4. Counties, cities or towns may utilize these tax funds for any public purpose.
    5. At the time a new permit is issued to any business subject to this tax, the permit holder shall be required to pay the privilege tax on a prorated basis for each month or portion thereof remaining until the next tax payment date.

Acts 1933, ch. 69, § 9b; C. Supp. 1950, § 1191.11; T.C.A. (orig. ed.), § 57-203; Acts 1989, ch. 591, § 113; T.C.A., §57-5-103; Acts 1993, ch. 297, § 3; 1995, ch. 124, §§ 1, 2; 1996, ch. 641, §§ 3, 4.

Compiler's Notes. Former §57-5-104, concerning county and city alcoholic beverage permits, was transferred to §57-5-103 in 1993.

Attorney General Opinions. Constitutionality, OAG 94-064 (4/28/94).

57-5-105. Licenses or permits to sell outside of town or city limits — Applications — Temporary permits — Hearings.

  1. The owner of a business desiring to sell, distribute, manufacture, or store beer in any Class A county outside the limits of any incorporated city or town shall file an application for a permit with the county legislative body or a committee appointed by the county legislative body.
  2. In order to receive a permit, an applicant must establish that:
    1. No beer will be sold except at places where such sale will not cause congestion of traffic or interference with schools, churches, or other places of public gathering, or otherwise interfere with public health, safety and morals, the county legislative body having the right to forbid such storage, sale or manufacture at places within two thousand feet (2,000') of such places of public gatherings in its discretion. Nothing in this subdivision (b)(1) shall apply to places of business that are located in the terminal or main building at public airports serviced by commercial airlines with regularly scheduled flights;
    2. No sale shall be made to minors;
    3. No person, firm, corporation, joint-stock company, syndicate, or association having at least a five percent (5%) ownership interest in the applicant has been convicted of any violation of the laws against possession, sale, manufacture, or transportation of beer or other alcoholic beverages, or the manufacture, delivery, sale or possession with intent to manufacture, deliver or sell any controlled substance or controlled substance analogue, or any crime involving moral turpitude within the past ten (10) years;
    4. No person employed by the applicant in such distribution or sale has been convicted of any violation of the laws against possession, sale, manufacture, or transportation of beer or other alcoholic beverages, or the manufacture, delivery, sale or possession with intent to manufacture, deliver or sell any controlled substance that is listed in Schedules I through V in title 39, chapter 17, part 4, or the manufacture, delivery, sale or possession with intent to manufacture, deliver or sell any controlled substance analogue, or any crime involving moral turpitude within the past ten (10) years; and
    5. No sale shall be made for on-premise consumption unless the application so states.
  3. An applicant shall disclose the following information in the application:
    1. Name of the applicant;
    2. Name of applicant's business;
    3. Location of business by street address or other geographical description to permit an accurate determination of conformity with the requirements of this section;
    4. If beer will be sold at two (2) or more restaurants or other businesses pursuant to the same permit as provided by § 57-5-103(a)(4), a description of all such businesses;
    5. Persons, firms, corporations, joint-stock companies, syndicates, or associations having at least a five percent (5%) ownership interest in the applicant;
    6. Identity and address of a representative to receive annual tax notices and any other communication from the county legislative body or its committee;
    7. That no person, firm, joint-stock company, syndicate, or association having at least a five percent (5%) ownership interest in the applicant nor any person to be employed in the distribution or sale of beer has been convicted of any violation of the laws against possession, sale, manufacture, or transportation of beer or other alcoholic beverages or any crime involving moral turpitude within the past ten (10) years;
    8. Whether or not the applicant is seeking a permit which would allow the sale of beer either for on-premises consumption or for off-premises consumption, or both of the foregoing. If a holder of a beer permit for either off-premises consumption or on-premises consumption desires to change the permit holder's method of sale, the permit holder shall apply to the county legislative body or committee appointed by such body for a new permit; and
    9. Such other relevant information as may be required by the county legislative body or its committee. An applicant or permit holder shall be required to amend or supplement its application promptly if a change in circumstances affects the responses provided in its application.
  4. Any applicant making a false statement in the application shall forfeit such applicant's permit and shall not be eligible to receive any permit for a period of ten (10) years.
  5. Any applicant seeking a license or permit under this section and who complies with the conditions and provisions of this section shall have issued to such applicant the necessary license or permit, and in the event the license or permit is refused, the applicant shall be entitled to a hearing on the application for the issuance of a license or permit. The refusal to grant a license or permit, or the refusal to grant a hearing upon a person's application for a license or permit, may be reviewed by the circuit or chancery court in the manner as authorized under § 57-5-108.
  6. Before any county legislative body or committee appointed by the county legislative body shall issue a license or permit under this section, it may cause to be published in a newspaper of general circulation a notice in which the name of the applicant and the address of the location for such license or permit, whether the application is for the sale of alcoholic beverages for on-premises consumption and the date and time of its meeting at which such application shall be considered. Such meeting shall be a public hearing for the purpose of hearing the statement of any person or such person's attorney on any application for a license or permit.
    1. Temporary beer licenses or permits not to exceed thirty (30) days' duration may be issued at the request of the applicant upon the same conditions governing permanent permits. Such a temporary license or permit shall not allow the sale, storage or manufacture of beer on publicly owned property.
    2. Notwithstanding the prohibition concerning beer sales on publicly owned property in this subsection (g), in Class B counties and counties having a population in excess of three hundred thousand (300,000), according to the 2000 federal census or any subsequent federal census a temporary permit authorizing the sale of beer on public property may be issued to a bona fide charitable or nonprofit or political organization as defined in § 57-4-102, subject to the approval of the appropriate governmental authority charged with the management of such publicly owned property and the approval of the county beer board.
    3. Notwithstanding the prohibition concerning beer sales on publicly owned property in this subsection (g), a county authorized to issue a permit under § 57-5-106(c) may issue a temporary permit authorizing the sale of beer on public property.
  7. Where a permit or license has been refused three (3) times, the applicant shall not be allowed to apply again for a permit or license on the same premises until after the expiration of one (1) year from the date of the third refusal and only if the circumstances have substantially changed. Nothing in this subsection (h) shall be construed as prohibiting or in any manner limiting the right of any refusal to be reviewed by the circuit or chancery court in the manner as authorized under § 57-5-108.
  8. Class A counties, by resolution of their county legislative bodies, may forbid the sale of beer within three hundred feet (300') of a residential dwelling, measured from building to building; provided, that the owner of the residential dwelling appears in person before the county beer board and objects to the issuance of such permit or license. This subsection (i) shall not apply to locations where beer permits or licenses have been issued prior to the date of adoption of such a resolution by the county legislative body, or to an application for a change in the licensee or permittee at such locations.
  9. A county legislative body may impose training or certification restrictions or requirements on employees of a permit holder, but such restrictions or requirements shall not apply to any employee who is possessed of a server permit issued by the alcoholic beverage commission pursuant to chapter 3, part 7 of this title.
  10. When a permit or license has been denied based on the testimony of a person at the hearing which caused the county to deny the permit or license, the beer board or other appropriate governing body shall notify the person who testified if the applicant seeks a permit or license again at the same location within twelve (12) months. The person who testified may submit the person's remarks in writing to the beer board or other appropriate governing body at any additional hearing in lieu of making a physical appearance to testify.

Acts 1933, ch. 69, § 10; 1935, ch. 170, § 4; C. Supp. 1950, § 1191.14; Acts 1961, ch. 105, § 1; 1965, ch. 321, § 2; 1968, ch. 517, § 1; 1972, ch. 637, § 1; 1975, ch. 242, § 1; 1975, ch. 363, §§ 1, 2; 1976, ch. 713, § 1; 1977, ch. 340, § 1; 1978, ch. 637, § 1; 1978, ch. 799, § 1; impl. am. Acts 1978, ch. 934, §§ 7, 36; T.C.A. (orig. ed.), § 57-205; Acts 1980, ch. 909, § 1; 1983, ch. 386, §§ 2-5; 1984, ch. 610, § 1; 1987, ch. 74, §§ 1-3; 1993, ch. 297, § 5; 1995, ch. 252, § 1; 1995, ch. 396, § 7; 2004, ch. 598, § 1; 2005, ch. 294, §§ 1, 2; 2012, ch. 848, §§ 61, 62; 2016, ch. 654, §§ 1, 2; 2018, ch. 944, § 2.

Compiler's Notes. For tables of U.S. decennial populations of Tennessee counties, see Volume 13 and its supplement.

Amendments. The 2018 amendment added (g)(3).

Effective Dates. Acts 2018, ch.  944, § 4. May 15, 2018.

Textbooks. Tennessee Jurisprudence, 3 Tenn. Juris., Attorney General, § 3; 16 Tenn. Juris., Intoxicating Liquors, §§ 2-9, 12, 22; 19 Tenn. Juris., Municipal Corporations, § 52.

Law Reviews.

Constitutional Protection of Aliens, 40 Tenn. L. Rev. 235.

Attorney General Opinions. Whether a public cemetery constitutes a public gathering place, OAG 91-57 (6/10/91).

Public cemetery may constitute a public gathering place, OAG 92-51 (9/16/92).

Distance requirements for beer sales in Washington County, OAG 94-110 (10/6/94).

Authority of board, committee, or individual members to revoke beer permits, OAG 97-060 (5/1/97).

Private day care center as place of public gathering, 98-069 (3/25/98).

Applicability of local beer permit ordinance to liquor-by-the-drink license holders, OAG 99-098 (4/30/99).

The statute does not allow for different distance standards to be adopted and applied to different types of establishments that sell beer; only one distance standard may be established and it must apply to all establishments selling beer, whether for consumption on or off the premises, OAG 01-157 (10/25/01).

A beer board may not revoke a beer permit solely on the basis that the business is located within 2,000 feet of a church, if the church was built after the business was granted the permit, OAG 02-061 (5/8/02).

A county that has enacted an ordinance that prohibits the sale, storage, or manufacture of beer within 2,000 feet of a church, school, or other place of public gathering may amend the ordinance to protect the beer permits of businesses that have places of public gathering built within 2,000 feet of their premises after the issuance of their beer permits, although such an amendment is probably unnecessary, OAG 02-061 (5/8/02).

Different distance requirements for the sale of beer for different sections of a city would be permissible so long as the different sections are well defined and permit holders or permit applicants within each section are treated the same, OAG 02-092 (8/28/02).

If a county legislative body had passed a resolution prohibiting the issuance of a beer permit for locations within two thousand feet of schools, churches, or other places of public gathering, and later issued permits in violation of such distance requirement, could not at a later date readopt such a distance restriction, the effect of which would basically grandfather all such permits without revoking all permits issued in violation of the earlier adopted distance, OAG 04-012 (2/03/04).

A county legislative body may adopt a distance requirement of less than two thousand feet by setting the distance at a point which would basically grandfather all permits issued in violation of an earlier two thousand foot distance, OAG 04-012 (2/03/04).

A Class A county does not have the authority to prohibit the sale of cold beer, iced or mechanically cooled, at convenience stores and grocery stores in the unincorporated areas of the county, OAG 05-024 (3/14/05).

A Class A county does not have the authority to prohibit the sale of cold beer, iced or mechanically cooled, at convenience stores and grocery stores in the unincorporated areas of the county through a private act passed by the General Assembly, OAG 05-024 (3/14/05).

The 300-foot distance under T.C.A. §57-5-105(i) should be measured from the nearest portion of the entire building in which sales of beer occur, OAG 05-144 (9/27/05).

Implementation of beer permit distance requirement.  OAG 10-98, 2010 Tenn. AG LEXIS 108 (9/15/10).

Prohibiting the sale of beer through drive-up windows.  OAG 10-113, 2010 Tenn. AG LEXIS 119 (11/18/10).

Issuance of beer permits near cemeteries.  OAG 12-02, 2012 Tenn. AG LEXIS 7 (1/6/12).

NOTES TO DECISIONS

1. Constitutionality.

Acts 1961, ch. 105, amending this section and §57-5-109 so as to provide for review of refusal of beer license by statutory writ of certiorari with trial de novo was not unconstitutional as requiring courts to exercise administrative function in reviewing action of beer boards. Fentress County Beer Board v. Cravens, 209 Tenn. 679, 356 S.W.2d 260, 1962 Tenn. LEXIS 404 (1962).

Chapter 554, Private Acts of 1935, ratified by the Sullivan County Court in July 1939, prohibiting the sale of beer within 2,000 feet of a church, school, etc., is not unconstitutional as a local law superseding a general state law. Serv-U-Mart, Inc. v. Sullivan County, 527 S.W.2d 121, 1975 Tenn. LEXIS 643 (Tenn. 1975).

T.C.A. §57-5-105(i) (formerly (f)) does not violate the due process and the equal protection provisions of the state and federal constitutions. Davis v. Blount County Beer Bd., 621 S.W.2d 149, 1981 Tenn. LEXIS 481 (Tenn. 1981).

T.C.A. §57-5-105(i) (formerly (f)) does not violate the Establishment Clause of the state or federal constitutions. Welch v. Claiborne County Beer Bd., 678 S.W.2d 52, 1984 Tenn. LEXIS 943 (Tenn. 1984), appeal dismissed, 471 U.S. 1010, 105 S. Ct. 2008, 85 L. Ed. 2d 293, 1985 U.S. LEXIS 2552 (1985).

2. Construction.

It is the policy of the courts, generally, to give to statutory provisions regulating the sale of intoxicating liquors a construction liberally in favor of the regulations and the places or institutions for which they are designed to protect and strictly against the applicants for beer or liquor licenses or permits. Y & M v. Beer Com. or Bd., 679 S.W.2d 446, 1984 Tenn. LEXIS 872 (Tenn. 1984).

The supreme court of Tennessee has not construed this section as conferring a veto power upon churches or religious establishments. There are separate statutory provisions containing distance requirements from churches and schools. T.C.A. §57-5-105(i) (formerly (f)) involves private residences only. Welch v. Claiborne County Beer Bd., 678 S.W.2d 52, 1984 Tenn. LEXIS 943 (Tenn. 1984), appeal dismissed, 471 U.S. 1010, 105 S. Ct. 2008, 85 L. Ed. 2d 293, 1985 U.S. LEXIS 2552 (1985).

3. Authority of County to Regulate Beer.

Since this chapter confers express authority on cities and towns to pass proper ordinances governing the issuance of licenses and also provides express provisions for such cities and towns to impose additional restrictions fixing zones and territories, providing hours of opening and closing and such other regulations as will promote public health, morals and safety in regulation of the alcoholic beverages to which this chapter refers, but only confers on county legislative bodies the authority to regulate the issuance of licenses, the language of the statute must be taken as excluding county legislative bodies from making any regulations beyond the provisions of the statute. Wright v. State, 171 Tenn. 628, 106 S.W.2d 866, 1937 Tenn. LEXIS 145 (1937).

Indictment under this section charging defendant with violation of regulations of the county legislative body with reference to the time of sale of beer and regulation prohibiting sale of beer at a dance hall was improper since under this section the county legislative body only had authority to regulate issuance of licenses for sale of such alcoholic beverages and defendant's violation of the above provisions was not within the scope of such authority so as to permit a conviction for such alleged misdemeanor. Wright v. State, 171 Tenn. 628, 106 S.W.2d 866, 1937 Tenn. LEXIS 145 (1937).

The county legislative body had no authority to enact a regulation providing that beer permits should not be issued for a longer period than one year, and a defendant who had been issued a permit without a time limit could not properly be convicted of selling beer without a license where he sold beer more than a year after the issuance of such permit without having it renewed. Huffer v. State, 178 Tenn. 644, 162 S.W.2d 381, 1941 Tenn. LEXIS 91 (1942).

Neither the county legislative body nor county beer committee has authority to promulgate a rule prohibiting the sale of beer by licensed dealers after 7:00 p.m., as power given to incorporated cities and towns to provide hours for opening and closing does not include counties. Perry v. Sevier County Beer Com., 181 Tenn. 696, 184 S.W.2d 32, 1944 Tenn. LEXIS 293 (1944).

Resolution of county legislative body acting as beer board prohibiting sale of beer within 2,000 feet of public gathering place applied to persons holding permits at time of adoption of resolution and the holders of such existing permits had no contractual rights by virtue of such permits which would allow them to continue to sell beer. McClellan v. State, 199 Tenn. 60, 282 S.W.2d 631, 1955 Tenn. LEXIS 428 (1955).

This section relates to counties only. Thompson v. Harriman, 568 S.W.2d 92, 1978 Tenn. LEXIS 607 (Tenn. 1978).

4. —Discretion of County Legislative Body.

Reasonable discretion is given to the county legislative body in the granting of licenses and the regulation to be exercised by the body is in the granting and withdrawal of licenses. State ex rel. Cravens v. Delk, 175 Tenn. 614, 136 S.W.2d 524, 1939 Tenn. LEXIS 81 (1940); Henderson v. Grundy County Beer Committee, 176 Tenn. 397, 141 S.W.2d 901, 1939 Tenn. LEXIS 130 (1940).

5. County Beer Board or Committee.

County legislative body is the exclusive forum for determining validity of election of county beer committee. State ex rel. Thurman v. Scott, 184 Tenn. 76, 195 S.W.2d 617, 1946 Tenn. LEXIS 262 (1946).

Licensee was not entitled to attack legality of appointment of members of county beer board either at hearing before beer board or in review proceeding in circuit court, since county legislative body had exclusive jurisdiction to determine validity of appointment of members of board. Anderson v. Putnam County Beer Board, 184 Tenn. 623, 201 S.W.2d 994, 1947 Tenn. LEXIS 285 (1947).

Where a beer committee is not acting in accordance with the wishes of the county legislative body, the committee may be discharged at once and a new committee substituted. Manuel v. Eckel, 199 Tenn. 234, 285 S.W.2d 360, 1955 Tenn. LEXIS 300 (1955).

Where beer committee acted in proceeding to revoke permit and asserted that they had been recognized by the courts over a period of years and had acted on beer permits, such committee was at least a de facto committee and beyond the collateral attack of third parties. Jones v. Sullivan County Beer Board, 200 Tenn. 301, 292 S.W.2d 185, 1956 Tenn. LEXIS 410 (1956).

The county legislative body is the exclusive forum for presenting the question of the validity of the election of the members of the county beer board or committee and such question cannot be raised before the board or committee. Jones v. Sullivan County Beer Board, 200 Tenn. 301, 292 S.W.2d 185, 1956 Tenn. LEXIS 410 (1956).

6. —Discretionary Powers.

Beer committee did not abuse its discretion in denying applicant a permit to sell beer outside city limits where it appeared that applicant and his wife had a bad reputation in the community and that law enforcement was difficult in the area where permit was sought. State ex rel. Burkhart v. Coldwell, 185 Tenn. 572, 206 S.W.2d 795, 1947 Tenn. LEXIS 358 (1947).

County beer licensing committees have broad discretionary power and their decisions will not be disturbed by the courts unless there is clear abuse of discretion and their action is arbitrary and illegal. State ex rel. Simmons v. Latimer, 186 Tenn. 577, 212 S.W.2d 386, 1948 Tenn. LEXIS 583 (1948).

Where church was established many years after holder of beer permit was granted such permit, action of beer committee in revoking permit solely because permit holder's place of business was within 2,000 feet of church was arbitrary and unreasonable. Sparks v. Beer Committee of Blount County, 207 Tenn. 312, 339 S.W.2d 23, 1960 Tenn. LEXIS 460 (1960).

In denying a permit to sell beer to a grocery store, based upon the feeling that the morals and general welfare of the city would best be served by limiting the number of permits granted, the municipal beer board did not act arbitrarily and discriminatorily. De Caro v. Collierville, 213 Tenn. 254, 373 S.W.2d 466, 1963 Tenn. LEXIS 485 (1963).

This section gives a county discretion to adopt or not adopt the 2,000 foot prohibition, but once the prohibition is adopted it must be uniformly applied and any discretionary application is invalid. Serv-U-Mart, Inc. v. Sullivan County, 527 S.W.2d 121, 1975 Tenn. LEXIS 643 (Tenn. 1975); Rutherford County Beer Board v. Adams, 571 S.W.2d 830, 1978 Tenn. LEXIS 652 (Tenn. 1978).

Where the applicant had complied with all conditions of this section and there was no evidence that the permit would cause congestion of traffic or as to how or why the particular permit requested would interfere with the public health, safety or morals but there were only expressions of fears, speculations and apprehensions, there was no evidence on which to justify rejection of the permit. Harvey v. Rhea County Beer Board, 563 S.W.2d 790, 1978 Tenn. LEXIS 535 (Tenn. 1978).

One matter over which beer boards have no jurisdiction is the question of land use restrictions in the title to an applicant's property. McCarter v. Goddard, 609 S.W.2d 505, 1980 Tenn. LEXIS 515 (Tenn. 1980).

This section gives a county discretion to adopt or not adopt the 2,000 foot prohibition, but once the prohibition is adopted it must be uniformly applied and any discretionary application is invalid. Serv-U-Mart, Inc. v. Sullivan County, 527 S.W.2d 121, 1975 Tenn. LEXIS 643 (Tenn. 1975); Seay v. Knox County Quarterly Court, 541 S.W.2d 946, 1976 Tenn. LEXIS 561 (Tenn. 1976); Rutherford County Beer Board v. Adams, 571 S.W.2d 830, 1978 Tenn. LEXIS 652 (Tenn. 1978).

A showing of sufficient hardship and detrimental reliance may warrant an exception to the 2,000 foot rule. Needham v. Beer Bd. of Blount County, 647 S.W.2d 226, 1983 Tenn. LEXIS 622 (Tenn. 1983).

7. —Prescription of Additional Conditions.

A county beer board must issue a license to anyone who meets the requirements laid out in this section, and they may not prescribe conditions for the issuance of a permit in addition to those set out in the statute. McCarter v. Goddard, 609 S.W.2d 505, 1980 Tenn. LEXIS 515 (Tenn. 1980).

8. —Denial of Beer Permit.

Beer permit may not be denied because of a concentration of beer taverns and package stores in the vicinity. Lones v. Blount County Beer Board, 538 S.W.2d 386, 1976 Tenn. LEXIS 488 (Tenn. 1976).

Beer permit may not be denied because of restrictive covenant in chain of title prohibiting sale of alcoholic beverages on premises. Lones v. Blount County Beer Board, 538 S.W.2d 386, 1976 Tenn. LEXIS 488 (Tenn. 1976).

A bad reputation or occurrence of unlawful activities in and around a building shall not be an impediment to the issuance of a beer permit for those premises unless applicant can be associated with such reputation or activities. Lones v. Blount County Beer Board, 538 S.W.2d 386, 1976 Tenn. LEXIS 488 (Tenn. 1976).

The denial of a beer license may not be based on the philosophy of the county beer board. Coffman v. Hammer, 548 S.W.2d 310, 1977 Tenn. LEXIS 545 (Tenn. 1977).

Where nothing on the record indicated that the sale of beer for off-premises consumption would stand on a different footing from the sale of any other commodity, it was error to deny plaintiff a permit on the grounds that sale of beer by him would adversely affect the public health, safety and morals. Coffman v. Hammer, 548 S.W.2d 310, 1977 Tenn. LEXIS 545 (Tenn. 1977).

A beer permit will not be denied in every instance where children walk on a public sidewalk in close proximity to a proposed outlet for the sale of beer, since there can be a different impact upon public health, safety and morals from the sale of beer at a tavern, at a family-style restaurant, where beer is sold only to complement food, and at the neighborhood grocery store where small children delight to go. Memphis Alcohol Com. v. Randall Memorial Free Will Baptist Church, Inc., 550 S.W.2d 657, 1977 Tenn. LEXIS 539 (Tenn. 1977).

Where appellant had a record of violation of laws pertaining to the sale of beer and the gambling laws and her husband had a serious drinking problem, granting appellant a permit to sell beer at an establishment 35 miles from the nearest police authority would be detrimental to the public health, safety, and morals of those living and working in the community, and this was sufficient to justify the chancellor's denial of the beer permit sought by appellant. Tippit v. Obion County, 651 S.W.2d 211, 1983 Tenn. LEXIS 662 (Tenn. 1983).

9. —Revocation of Permit.

A beer board, after issuing a permit in violation of its own 2,000 foot rule, can revoke the permit on the sole ground that the business establishment is in violation of the 2,000 foot rule. Needham v. Beer Bd. of Blount County, 647 S.W.2d 226, 1983 Tenn. LEXIS 622 (Tenn. 1983).

10. Place of Public Gathering.

A place of public gathering as used in this section giving the county legislative body the discretion of forbidding the storage, sale or manufacture of the alcoholic beverages to which this statute is applicable within 2,000 feet of schools, churches or other places of public gathering did not embrace defendant's store, filling station or dance hall but is confined to public gathering places of a like sort to schools and churches. Wright v. State, 171 Tenn. 628, 106 S.W.2d 866, 1937 Tenn. LEXIS 145 (1937).

Baptismal site on creek on unimproved private property belonging to applicant for beer permit which had only been used with permission of applicant was not a “place of public gathering” within the meaning of this section. Adams v. Monroe County Quarterly Court, 214 Tenn. 270, 379 S.W.2d 769, 1964 Tenn. LEXIS 474 (1964).

Terms such as “school” and “public meeting place” that have established definitions by a combination of statute and case law must be given uniform application by the cities and counties of this state in exercising the powers granted them by the legislature to regulate the sale of beer. Murfreesboro v. Davis, 569 S.W.2d 805, 1978 Tenn. LEXIS 629 (Tenn. 1978).

City ordinance for regulating the sale of beer that prohibited sale of beer within 300 feet of a hospital, church, school, or other place of public gathering, was found to have been reasonable, and a sports complex that contained a day care center was such a facility. Tenn. Sports Complex v. Lenoir City Beer Bd., 106 S.W.3d 33, 2003 Tenn. App. LEXIS 10 (Tenn. Ct. App. 2003), appeal denied, — S.W.3d —, 2003 Tenn. LEXIS 530 (Tenn. May 27, 2003).

In that a national guard armory was not freely open to the public to use at any time, any public use was subject solely to the guard's approval, it retained the right to refuse to rent for an event, and any public use was “isolated and occasional”, the national guard armory was not a place of public gathering. Tenn. Sports Complex v. Lenoir City Beer Bd., 106 S.W.3d 33, 2003 Tenn. App. LEXIS 10 (Tenn. Ct. App. 2003), appeal denied, — S.W.3d —, 2003 Tenn. LEXIS 530 (Tenn. May 27, 2003).

11. Local Distance Rules of 2,000 Feet or Less.

Counties may adopt a rule of 2,000 feet or less as the minimum distance within which a church, school, or place of public gathering can be located from an applicant's place of business. Youngblood v. Rutherford County Beer Bd., 707 S.W.2d 507, 1986 Tenn. LEXIS 667 (Tenn. 1986).

12. Determination of Distance.

In determining the distance between the place of storage, sale or manufacture and the place of public gathering the distance must be measured in a straight line rather than some other method such as by the usually traveled route or by street lines. Jones v. Sullivan County Beer Board, 200 Tenn. 301, 292 S.W.2d 185, 1956 Tenn. LEXIS 410 (1956).

Where a beer permit is sought for a restaurant located on a large lot the measurement begins from the building in which the restaurant is located and not from the property line. Ewin v. Richardson, 217 Tenn. 534, 399 S.W.2d 318, 1966 Tenn. LEXIS 608 (1966).

The distance between a school and the premises involved must be measured in a direct line and not by road, although the latter is the normal method of travel between the two points. Serv-U-Mart, Inc. v. Sullivan County, 527 S.W.2d 121, 1975 Tenn. LEXIS 643 (Tenn. 1975).

The power to specifically provide by statute a method of measurement in enforcing beer permit distance ordinances resides in the legislature, not the cities and counties of this state. Murfreesboro v. Davis, 569 S.W.2d 805, 1978 Tenn. LEXIS 629 (Tenn. 1978).

In determining whether county resolution forbidding the issuance of permits to sell beer within 2,000 feet of any church, school or other place of public gathering had been invalidated by discriminatory and discretionary enforcement, the issue was not whether the present members of the county beer board had discriminatorily and discretionarily applied the 2,000 feet rule but whether the board, as a continuing entity of government, had engaged in such discriminatory and discretionary application. Rutherford County Beer Board v. Adams, 571 S.W.2d 830, 1978 Tenn. LEXIS 652 (Tenn. 1978).

The statute and the ordinance forbidding the location of a beer outlet within 2,000 feet of a church applies when the church in question, although within 2,000 feet of the proposed outlet, is located outside the state of Tennessee. Y & M v. Beer Com. or Bd., 679 S.W.2d 446, 1984 Tenn. LEXIS 872 (Tenn. 1984).

13. —Validity of Distance Ordinance.

Restoration of the validity of a distance ordinance which has been discriminatorily enforced can only be achieved by revocation or other elimination, such as attrition, of the discriminatorily-issued permits and licenses. Murfreesboro v. Davis, 569 S.W.2d 805, 1978 Tenn. LEXIS 629 (Tenn. 1978).

Discriminatory enforcement of a beer permit distance ordinance cannot be rectified by post facto amendments. Murfreesboro v. Davis, 569 S.W.2d 805, 1978 Tenn. LEXIS 629 (Tenn. 1978).

Once discriminatory enforcement of a distance ordinance is established, such ordinance is completely removed as a valid ground for denial of a beer permit. Murfreesboro v. Davis, 569 S.W.2d 805, 1978 Tenn. LEXIS 629 (Tenn. 1978).

This section gives a county discretion to adopt or not adopt the 2,000 foot prohibition, but once the prohibition is adopted it must be uniformly applied and any discretionary application is invalid. Serv-U-Mart, Inc. v. Sullivan County, 527 S.W.2d 121, 1975 Tenn. LEXIS 643 (Tenn. 1975); Seay v. Knox County Quarterly Court, 541 S.W.2d 946, 1976 Tenn. LEXIS 561 (Tenn. 1976); Rutherford County Beer Board v. Adams, 571 S.W.2d 830, 1978 Tenn. LEXIS 652 (Tenn. 1978); Reagor v. Dyer County, 651 S.W.2d 700, 1983 Tenn. LEXIS 660 (Tenn. 1983).

It was evident from the fact that three other establishments retained their license in violation of the rule that there had been “discretionary application” in its enforcement. Seay v. Knox County Quarterly Court, 541 S.W.2d 946, 1976 Tenn. LEXIS 561 (Tenn. 1976).

The effect of discriminatory application of the 2,000 foot rule is to completely remove, as a valid ground for denial of a beer permit, proximity, measured in feet, to a school, church or other place of public gathering. Seay v. Knox County Quarterly Court, 541 S.W.2d 946, 1976 Tenn. LEXIS 561 (Tenn. 1976).

County resolution forbidding issuance of beer license to an establishment within 300 feet of a residential dwelling where the owner of the residence objects and, T.C.A. §57-5-105(i) (formerly (f)), from which the ordinance derived its authority, were valid enactments and not unlawful delegations of legislative power to private individuals. Davis v. Blount County Beer Bd., 621 S.W.2d 149, 1981 Tenn. LEXIS 481 (Tenn. 1981).

Where four establishments were previously granted permits by previous board in violation of county 2,000 feet rule and there had been no revocation or other elimination to save the rule, such rule was void and of no effect, and plaintiff would be granted a permit to sell beer. Reagor v. Dyer County, 651 S.W.2d 700, 1983 Tenn. LEXIS 660 (Tenn. 1983).

14. Application for Permit.

Where petition for certiorari from beer board alleged that the petition for a beer license and the evidence showed compliance with this section in that the beer was not to be sold at any places prohibited by this section, but nowhere in the petition or in the evidence was it shown where the beer would be sold, the petition for certiorari was properly refused. Crowley v. De Kalb County Beer Board, 206 Tenn. 547, 334 S.W.2d 949, 1960 Tenn. LEXIS 392 (1960).

An applicant seeking a license or permit to sell beer in a county is required to establish by proof that his application complies with certain conditions and provisions set out in this section which leaves the judgment to be made on the issue of whether or not an applicant has under the proof met all of such conditions and provisions. Cantrell v. De Kalb County Beer Board, 213 Tenn. 568, 376 S.W.2d 480, 1964 Tenn. LEXIS 423 (1964).

15. Hearing on Permit.

Obligation to see that application for permit or other papers which were before beer board were sent up to superior court was upon person who filed petition for certiorari. Hughes v. Little, 213 Tenn. 574, 376 S.W.2d 482, 1964 Tenn. LEXIS 424 (1964).

Evidence in general of the evils of beer is not sufficient to show that the granting of a particular beer permit will interfere with the public health, safety and morals. Ewin v. Richardson, 217 Tenn. 534, 399 S.W.2d 318, 1966 Tenn. LEXIS 608 (1966).

16. Review and Appeal.

Motion for new trial is not a prerequisite to appeal to supreme court from trial court's review of action of beer committee on granting or revocation of beer permit. Chadwick v. Beer Committee of Anderson County, 213 Tenn. 592, 376 S.W.2d 490, 1964 Tenn. LEXIS 426 (1964).

Supreme court considers an appeal from the action of the trial court in denying or granting a permit de novo accompanied by a presumption of the correctness of the judgment so that such judgment may be overturned by a preponderance of the evidence. Adams v. Monroe County Quarterly Court, 214 Tenn. 270, 379 S.W.2d 769, 1964 Tenn. LEXIS 474 (1964).

Under the 1961 amendment to this section a person aggrieved by the action of a beer board has the sole remedy of having the same reviewed in either the circuit or chancery court by statutory writ of certiorari with trial de novo as a substitute for appeal with the cause being tried as if it had originated in such court; and the trial judge is required to make an independent judgment of the merits substituting his judgment for that of the beer board. Cantrell v. De Kalb County Beer Board, 213 Tenn. 568, 376 S.W.2d 480, 1964 Tenn. LEXIS 423 (1964); Hughes v. Little, 213 Tenn. 574, 376 S.W.2d 482, 1964 Tenn. LEXIS 424 (1964); Chadwick v. Beer Committee of Anderson County, 213 Tenn. 592, 376 S.W.2d 490, 1964 Tenn. LEXIS 426 (1964).

Where, upon hearing de novo, chancellor reversed action of beer board and held that petitioner was entitled to beer permit, case came to supreme court with presumption of correctness of judgment of trial court and burden was on beer board to show that evidence preponderated against such judgment. Moore v. Marshall County Beer Board, 214 Tenn. 668, 383 S.W.2d 14, 1964 Tenn. LEXIS 520 (1964).

The decree of a trial court granting or denying a beer permit creates a presumption of correctness and the burden is on the appellant to show that the evidence preponderates against the judgment of the trial court. Gibson v. Ferguson, 562 S.W.2d 188, 1976 Tenn. LEXIS 508 (Tenn. 1976); Rutherford County Beer Board v. Adams, 571 S.W.2d 830, 1978 Tenn. LEXIS 652 (Tenn. 1978).

Under this section and §57-5-109 the decree of a trial court granting or denying a beer permit comes to the appellate court accompanied by a presumption of correctness and the burden is upon the appellant to show that the evidence preponderates against the judgment of the trial court. Hinkle v. Montgomery, 596 S.W.2d 800, 1980 Tenn. LEXIS 439 (Tenn. 1980).

Residents'  testimony concerning sale of beer from a particular establishment and applicant's business practices preponderated against trial court's reversal of city's alcohol commission's denial of a beer permit under T.C.A. §57-5-105(b)(1); there was evidence linking the sale of beer at the market to a pattern of littering and unlawful conduct. Suleiman v. City of Memphis Alcohol Comm'n, 290 S.W.3d 844, 2008 Tenn. App. LEXIS 417 (Tenn. Ct. App. July 24, 2008).

17. Indictment for Unlawful Sale.

Where effect of indictment upon reading both of its counts together was to charge that on a certain date defendant through those working for him sold beer without a license in violation of this section, such indictment was sufficient. State v. Youngblood, 199 Tenn. 519, 287 S.W.2d 89, 1956 Tenn. LEXIS 348 (1956).

18. Transfer of Permit.

Under Tennessee law a beer permit may be transferred from one location to another upon proper application to the quarterly court (now the court of general sessions) or its beer committee and a showing of full compliance with the statute. Howard v. Willocks, 525 S.W.2d 132, 1975 Tenn. LEXIS 652 (Tenn. 1975); Midgett v. Smith, 591 S.W.2d 765, 1979 Tenn. LEXIS 530 (Tenn. 1979).

19. Prospective Application of County Regulation.

The language of this statute which provides that a county resolution forbidding the sale of beer within 300 feet of a residence if such residence owner enters an objection shall not apply to a location where beer permits have been issued prior to the adoption of the resolution, and also prohibits the application of the resolution to petitions for amendments to such existing beer permits. Claiborne County Beer Board v. Poore, 556 S.W.2d 87, 1977 Tenn. LEXIS 611 (Tenn. 1977).

Where storeowner had been granted a beer permit prior to the adoption by the county of a resolution pursuant to this section forbidding the sale of beer within 300 feet of a residence if such residence owner entered an objection, such resolution could not be applied to storeowner's subsequent application for an amendment to that beer permit. Claiborne County Beer Board v. Poore, 556 S.W.2d 87, 1977 Tenn. LEXIS 611 (Tenn. 1977).

Rule promulgated a year after plaintiff filed his application for a beer license but before the beer board denied plaintiff's application could be used as basis to deny plaintiff's application. Coffman v. Washington County Beer Bd., 615 S.W.2d 675, 1981 Tenn. LEXIS 440 (Tenn. 1981).

20. Moral Turpitude.

Neither rolling dice for a soft drink nor failure to release caught fish were crimes involving moral turpitude. Gibson v. Ferguson, 562 S.W.2d 188, 1976 Tenn. LEXIS 508 (Tenn. 1976).

21. Construction with § 57-5-108.

The 1961 amendment, providing judicial review for a refusal of a beer license, did not implicitly repeal T.C.A. §57-5-108, which provides that municipalities may enact ordinances governing the issuance and revocation of beer licenses. De Caro v. Collierville, 213 Tenn. 254, 373 S.W.2d 466, 1963 Tenn. LEXIS 485 (1963).

22. Traffic Congestion.

In order for traffic congestion to constitute a valid basis for denying a permit to sell beer in the package it must be shown that the issuance of a permit would cause traffic to be more congested and more hazardous than it was prior to the issuance of the permit, a fact most difficult to establish with respect to a location at which beer has not been sold previously. Hinkle v. Montgomery, 596 S.W.2d 800, 1980 Tenn. LEXIS 439 (Tenn. 1980).

23. Exemptions.

Beer board's decision to effectively exempt a license applicant from the enforcement of a valid distance from public gathering place rule, providing a permit for the sale of alcohol for off-premises consumption in violation of the county's distance rule as the result of an agreed order in a contested civil case, invalidated the rule as a basis for the denial of future permits, and there was no exception for the discriminatory application of the distance rule simply because it occurred pursuant to an agreed order entered into in good faith. The library with its public meeting room within 200 feet of the places where the applicants sought licenses was a public gathering place. Boyd's Creek Enters., LLC v. Sevier County, 362 S.W.3d 600, 2010 Tenn. App. LEXIS 721 (Tenn. Ct. App. Nov. 18, 2010), appeal denied, — S.W.3d —, 2011 Tenn. LEXIS 510 (Tenn. May 25, 2011).

57-5-106. Licensing powers of cities, towns, and Class B counties.

  1. All incorporated cities, towns and Class B counties in this state are authorized to pass proper ordinances governing the issuance and revocation or suspension of licenses for the storage, sale, manufacture and/or distribution of beer within the corporate limits of the cities and towns and within the general services districts of Class B counties outside the limits of any smaller cities as defined in § 7-1-101 and to provide a board of persons before whom such application shall be made, but the power of such cities, towns and Class B counties to issue licenses shall in no event be greater than the power herein granted to counties, but cities, towns and Class B counties may impose additional restrictions, fixing zones and territories and provide hours of opening and closing and such other rules and regulations as will promote public health, morals and safety as they may by ordinance provide. The ordinance power granted to a municipality by this subsection (a) does not permit a municipality to establish residency requirements for its applicants. The ordinance power granted to a municipality by this section does not permit a municipality to impose training or certification restrictions or requirements on employees of a permittee if those employees possess a server permit issued by the alcoholic beverage commission pursuant to chapter 3, part 7 of this title.
  2. Cities, towns and Class B counties may authorize the sale of beer in the rooms of regularly conducted hotels and motels and in regularly incorporated clubs and lodges.
    1. Notwithstanding subsection (a), any county that is the owner of property used as a park that is within the corporate boundaries of a municipality within that county has the exclusive authority to issue, revoke, and suspend licenses for the storage, sale, manufacture, and distribution of beer within the boundaries of the park consistent with the county rules governing the issuance, revocation, and suspension of licenses for other locations in the county, except there is no restriction of distance from residences or churches, schools, or other public gathering places.
    2. This subsection (c) applies only in counties with a population of not less than one hundred seventy-two thousand three hundred (172,300) nor more than one hundred seventy-two thousand four hundred (172,400), according to the 2010 federal census or any subsequent federal census.

Acts 1933, ch. 69, § 10; C. Supp. 1950, § 1191.14; Acts 1965, ch. 321, § 3; T.C.A. (orig. ed), § 57-208; Acts 1981, ch. 377, § 1; 1983, ch. 386, § 6; 1993, ch. 297, § 7; 1993, ch. 451, § 3; T.C.A., §57-5-108; Acts 1995, ch. 396, § 8; 2018, ch. 944, § 1.

Compiler's Notes. Former §57-5-106, concerning bond requirements for alcoholic beverages warehousemen, dealers and manufacturers, was transferred to §57-5-110 in 1993.

For tables of U.S. decennial populations of Tennessee counties, see Volume 13 and its supplement.

Amendments. The 2018 amendment added (c).

Effective Dates. Acts 2018, ch.  944, § 4. May 15, 2018.

Cross-References. Prohibited acts, title 57, ch. 5, part 3.

Textbooks. Tennessee Jurisprudence, 16 Tenn. Juris., Intoxicating Liquors, §§ 4, 5, 9.

Law Reviews.

Administrative Law — 1964 Tennessee Survey (E. Blythe Stason), 18 Vand. L. Rev. 1047.

Attorney General Opinions. Constitutionality of Dyersburg City ordinance pertaining to beer, OAG 94-120 (10/10/94).

Municipal beer ordinances, OAG 96-020 (2/16/96).

Authority of board, committee, or individual members to revoke beer permits, OAG 97-060 (5/1/97).

A city controls the traffic of beer within its corporate limits by virtue of its permit-issuing power and the ordinances it passes to delineate and enforce this power; a referendum is not necessary to approve beer sales in an incorporated city and the legislature has not given cities the right to conduct such a referendum, OAG 02-092 (8/28/02).

Prohibiting the sale of beer through drive-up windows.  OAG 10-113, 2010 Tenn. AG LEXIS 119 (11/18/10).

NOTES TO DECISIONS

1. Powers of Municipalities.

This section concedes to municipalities very wide discretionary powers in matters relating to the sale of intoxicating beverages, including zoning and restriction of areas, hours of opening and closing and similar matters. Howard v. Christmas, 180 Tenn. 519, 176 S.W.2d 821, 1944 Tenn. LEXIS 317 (1944).

The granting of the privilege of selling intoxicating beverages, including beer, in municipalities by state statutes does not preclude municipalities from enacting all reasonable measures deemed desirable for the protection of the morals of its community, even to the extent of prohibition. Howard v. Christmas, 180 Tenn. 519, 176 S.W.2d 821, 1944 Tenn. LEXIS 317 (1944); Gatlinburg Beer Regulation Committee v. Ogle, 185 Tenn. 482, 206 S.W.2d 891, 1947 Tenn. LEXIS 363 (1947); Ketner v. Clabo, 189 Tenn. 260, 225 S.W.2d 54, 1949 Tenn. LEXIS 423 (1949).

In all its pronouncements on this chapter the supreme court has recognized that municipalities have very broad powers in the regulation of the sale of beer. Gatlinburg Beer Regulation Committee v. Ogle, 185 Tenn. 482, 206 S.W.2d 891, 1947 Tenn. LEXIS 363 (1947); McHugh v. Morristown, 186 Tenn. 175, 208 S.W.2d 1021, 1948 Tenn. LEXIS 533 (1948).

Municipality is not required to issue a beer permit. Ketner v. Clabo, 189 Tenn. 260, 225 S.W.2d 54, 1949 Tenn. LEXIS 423 (1949).

Amendment to §57-5-105, giving courts the right to review a municipality's refusal of a permit to sell beer through the statutory writ of certiorari, with trial de novo, does not make it mandatory upon a municipality to grant more permits than the city deems advisable. De Caro v. Collierville, 213 Tenn. 254, 373 S.W.2d 466, 1963 Tenn. LEXIS 485 (1963).

Under the authority given a municipality by this section, the appropriate board may prescribe such rules and regulations as they think advisable; and the only limitations on the power given is that the board must exercise such power in good faith, not in a discriminatory and arbitrary manner. De Caro v. Collierville, 213 Tenn. 254, 373 S.W.2d 466, 1963 Tenn. LEXIS 485 (1963); Case v. Carney, 213 Tenn. 597, 376 S.W.2d 492, 1964 Tenn. LEXIS 427 (1964).

Under this section regulation and control of sale of beer is made a subject of the police power and absolute discretion is given governing body of municipality to effect such regulation and control. Barnes v. Dayton, 216 Tenn. 400, 392 S.W.2d 813, 1965 Tenn. LEXIS 585 (1965).

Municipalities are given absolute discretion in the matter of the regulation and control of beer and thus have the authority to revoke a beer license for sale to minors. Richards v. Lewisburg Alcoholic Beverage Com., 543 S.W.2d 852, 1977 Tenn. LEXIS 520 (Tenn. 1977).

The city had the right to prohibit the sale of beer near a school or church. Memphis Alcohol Com. v. Randall Memorial Free Will Baptist Church, Inc., 550 S.W.2d 657, 1977 Tenn. LEXIS 539 (Tenn. 1977).

Municipalities were not affected by the 1961 amendment to §§57-5-105 and57-5-109 (now §57-5-108) and thus have the continuing right under this section to regulate the sale of beer to the point of prohibition. Thompson v. Harriman, 568 S.W.2d 92, 1978 Tenn. LEXIS 607 (Tenn. 1978).

Terms such as “school” and “public meeting place” that have established definitions by a combination of statute and case law must be given uniform application by the cities and counties of this state in exercising the powers granted them by the legislature to regulate the sale of beer. Murfreesboro v. Davis, 569 S.W.2d 805, 1978 Tenn. LEXIS 629 (Tenn. 1978).

The power to specifically provide by statute a method of measurement in enforcing beer permit distance ordinances resides in the legislature, not the cities and counties of this state. Murfreesboro v. Davis, 569 S.W.2d 805, 1978 Tenn. LEXIS 629 (Tenn. 1978).

A city does not have more power than a county to issue licenses, but has more power to place restrictions upon the issuance of licenses. Watkins v. Naifeh, 635 S.W.2d 104, 1982 Tenn. LEXIS 416 (Tenn. 1982).

This enabling statute has been given the broadest possible construction; nevertheless, the broad grant of power to the city fathers to regulate the sale of beer may not be exercised in a discriminatory or arbitrary manner. Pantry, Inc. v. Pigeon Forge, 681 S.W.2d 23, 1984 Tenn. LEXIS 879 (Tenn. 1984); Fritts v. Wallace, 723 S.W.2d 948, 1987 Tenn. LEXIS 816 (Tenn. 1987).

Municipalities have extensive authority to regulate the sale of beer within their boundaries and this includes the authority to limit the number and location of retail outlets, both for on-premises and off-premises consumption. State ex rel. Amvets Post 27 v. Beer Bd. of Jellico, 717 S.W.2d 878, 1986 Tenn. LEXIS 794 (Tenn. 1986).

The state has the power to prohibit certain acts involving exposure of parts of the body and to restrict the area where performers may perform in establishments holding a beer license, under U.S. const., amend. 21, and under New York State Liquor Auth. v. Bellanca, 452 U.S. 714, 101 S. Ct. 2599, 69 L. Ed. 2d 357, 1981 U.S. LEXIS 119 (1981). PP & C, Inc. v. Metropolitan Beer Permit Bd., 833 S.W.2d 90, 1992 Tenn. App. LEXIS 91 (Tenn. Ct. App. 1992).

A metropolitan government need only have a rational basis for its decision to prohibit certain acts in establishments selling beer when the same prohibition does not extend to all public places. PP & C, Inc. v. Metropolitan Beer Permit Bd., 833 S.W.2d 90, 1992 Tenn. App. LEXIS 91 (Tenn. Ct. App. 1992).

2. Beer Boards or Committees.

A beer regulation committee created by town ordinance has the power and right to make reasonable regulations for those to follow who desire a permit to sell beer. Gatlinburg Beer Regulation Committee v. Ogle, 185 Tenn. 482, 206 S.W.2d 891, 1947 Tenn. LEXIS 363 (1947).

In denying a permit to sell beer to a grocery store, based upon the feeling that the morals and general welfare of the city would best be served by limiting the number of permits granted, the municipal beer board did not act arbitrarily and discriminatorily. De Caro v. Collierville, 213 Tenn. 254, 373 S.W.2d 466, 1963 Tenn. LEXIS 485 (1963).

3. Municipal Ordinances.

Under this statute a zoning ordinance by the city of Maryville which omitted the location of complainant's business from named streets where beer might be sold was not an unreasonable abridgement of complainant's property rights or an unreasonable discrimination against him but was within the provisions of the statute. Madison v. Maryville, 173 Tenn. 489, 121 S.W.2d 540, 1938 Tenn. LEXIS 32 (1938).

Under the statute a municipality could properly pass an ordinance making it unlawful to store, wholesale or retail beer within 2,000 feet of any school, church or lodge building, and persons holding licenses who were thereby affected had no vested or property rights under which they would be entitled to enjoin the enforcement of the ordinance. Cravens v. Storie, 175 Tenn. 285, 133 S.W.2d 609, 1939 Tenn. LEXIS 39 (1939).

A city ordinance which prohibited sale of beer was not contrary to the provisions of this chapter regulating beer where city by its charter was authorized to prohibit sale of beer and this chapter authorized municipalities to regulate sale of beer. Grubb v. Morristown, 185 Tenn. 114, 203 S.W.2d 593, 1947 Tenn. LEXIS 310 (1947).

City ordinance prohibiting sale of beer was not discriminatory and did not violate any civil right. Grubb v. Morristown, 185 Tenn. 114, 203 S.W.2d 593, 1947 Tenn. LEXIS 310 (1947).

A proposed ordinance prohibiting storage and possession of beer was valid under the general police power of the city as it promoted “public health, morals and safety” of the city. McHugh v. Morristown, 186 Tenn. 175, 208 S.W.2d 1021, 1948 Tenn. LEXIS 533 (1948).

Town ordinance forbidding sale of beer at any point within 5,000 feet of church or school did not suspend the general law on the ground that less beer would be sold and less revenue earned, since statute authorizing sale of beer is both a revenue and police measure, and, furthermore, ordinance in question was pursuant to general law, as this section authorizes county legislature bodies to forbid sale of beer at any point closer than 2,000 feet to a church or school. Rule v. Etowah, 195 Tenn. 634, 263 S.W.2d 498, 1953 Tenn. LEXIS 388 (1953).

Ordinance prohibiting sale of beer without permit, making sale for on-premises consumption illegal, prohibiting issuance of permit where beer board was of opinion that beer business would cause traffic congestion or otherwise be hazardous to public health, morals or welfare, limiting package store permits to two, prohibiting sale within certain area of city and regulating hours of sale was constitutional. Barnes v. Dayton, 216 Tenn. 400, 392 S.W.2d 813, 1965 Tenn. LEXIS 585 (1965).

Although this section vested city with broad authority to limit the number of beer permits, that authority could be exercised only through the enactment of proper ordinances so providing, and absent such ordinance the denial of an application for a beer permit was arbitrary and capricious. Brooks v. Garner, 566 S.W.2d 531, 1978 Tenn. LEXIS 554 (Tenn. 1978).

Discriminatory enforcement of a beer permit distance ordinance cannot be rectified by post facto amendments. Murfreesboro v. Davis, 569 S.W.2d 805, 1978 Tenn. LEXIS 629 (Tenn. 1978).

Once discriminatory enforcement of a distance ordinance is established, such ordinance is completely removed as a valid ground for denial of a beer permit. Murfreesboro v. Davis, 569 S.W.2d 805, 1978 Tenn. LEXIS 629 (Tenn. 1978).

Restoration of the validity of a distance ordinance which has been discriminatorily enforced can only be achieved by revocation or other elimination, such as attrition, of the discriminatorily-issued permits and licenses. Murfreesboro v. Davis, 569 S.W.2d 805, 1978 Tenn. LEXIS 629 (Tenn. 1978).

4. Partially Invalid Ordinance.

City ordinance cannot prohibit possession of beer but where it was included in ordinance prohibiting sale of beer the possession part would be elided and the ordinance held valid. Helms v. Richardson, 191 Tenn. 280, 231 S.W.2d 1019, 1950 Tenn. LEXIS 553 (1950).

5. Regulations of Beer Board or Committee.

A regulation of a beer committee requiring that an application for a permit to retail beer must be accompanied by an agreement for such sale signed by two thirds of the property owners within a radius of 300 feet of the place of the proposed business is a valid regulation. Gatlinburg Beer Regulation Committee v. Ogle, 185 Tenn. 482, 206 S.W.2d 891, 1947 Tenn. LEXIS 363 (1947).

Finding of chancellor of “adequacy of the premises” did not constitute a finding that the issuance of a license would not “interfere with the public health, safety and morals.” Case v. Carney, 213 Tenn. 597, 376 S.W.2d 492, 1964 Tenn. LEXIS 427 (1964).

Where, upon review of action of city beer permit board under the provisions of §57-5-109 (now §57-5-108) providing for statutory certiorari, chancellor did not weigh the evidence but merely found that the board did not act “illegally, capriciously or unreasonably” in refusing permit, the case was reversed and remanded for a trial de novo of the issues had upon such proof as the parties might desire to introduce pursuant to the provisions of §27-9-111. Case v. Carney, 213 Tenn. 597, 376 S.W.2d 492, 1964 Tenn. LEXIS 427 (1964).

6. Mandatory Nature of Section.

Statutes prescribing how delegated police power may be exercised by municipalities are mandatory and exclusive. Brooks v. Garner, 566 S.W.2d 531, 1978 Tenn. LEXIS 554 (Tenn. 1978).

7. Construction with § 57-5-105.

This section was not implicitly repealed by the 1961 amendment to §57-5-105 that provided for judicial review of beer license denials. De Caro v. Collierville, 213 Tenn. 254, 373 S.W.2d 466, 1963 Tenn. LEXIS 485 (1963); Case v. Carney, 213 Tenn. 597, 376 S.W.2d 492, 1964 Tenn. LEXIS 427 (1964).

8. Clubs.

A club which has a license for on-premises consumption of alcoholic beverages and beer from the state does not have an absolute right to a beer permit from a city beer board. State ex rel. Amvets Post 27 v. Beer Bd. of Jellico, 717 S.W.2d 878, 1986 Tenn. LEXIS 794 (Tenn. 1986).

57-5-107. Hotels and motels.

  1. Any hotel or motel licensed under this chapter and under chapter 4 of this title may dispense beer to adult guests through locked, in-room units.
  2. No person under the age of twenty-one (21) shall be issued or supplied with a key by any hotel or motel for such units. Such units may only be located in any such hotel or motel located in municipalities having a population in excess of one hundred thousand (100,000) if the voters of such municipality have approved the consumption of alcoholic beverages on the premises by referendum and in any county in which such municipalities are located if the voters of such county have approved the consumption of alcoholic beverages on the premises by referendum.

Acts 1989, ch. 145, § 2; 1993, ch. 297, § 10; T.C.A., §57-5-111.

Compiler's Notes. Former §57-5-107 (Acts 1933, ch. 69, § 10; 1933, ch. 133, § 1; C. Supp. 1950, § 1191.14; T.C.A. (orig. ed.), § 57-207), concerning bonds of retailers, was repealed by Acts 1986, ch. 676, § 1.

Acts 1989, ch. 145, § 3 provided that the alcoholic beverage commission is authorized to promulgate any rules which may be necessary to implement the provisions of this section.

For tables of populations of Tennessee municipalities, see Volume 13 and its supplement.

Cross-References. Premises on which certain sales and consumption authorized, §57-4-101.

57-5-108. Revocation or suspension of permits or licenses — Civil penalty — Review of orders — Pilot project concerning local and municipal beer boards.

      1. Permits or licenses issued under this chapter by any county legislative body or any committee or board created by any county legislative body may be revoked or suspended in accordance with this section by the county legislative body, committee or board which issued the permit or license.
      2. Permits or licenses issued under this chapter by any board or commission created by the metropolitan council of any Class B county may be revoked or suspended in accordance with this section by such board or commission.
      3. Permits or licenses issued under this chapter by the governmental body of any incorporated city, or by any committee or board created by such governmental body may be revoked or suspended in accordance with this section by the governmental body, committee or board which issued the permit or license.
      1. A city, Class A county, or Class B county, or any committee, board, or commission created by these governmental bodies, shall not, pursuant to § 57-5-608, revoke or suspend the permit of a responsible vendor for a clerk's illegal sale of beer to a minor, if the permit or license holder and the clerk making the sale have complied with the requirements of § 57-5-606 as a responsible vendor under this part, but may impose on the responsible vendor a civil penalty not to exceed one thousand dollars ($1,000) for each offense of making or permitting to be made any sales to minors or for any other offense.
      2. The prohibition of subdivision (a)(2)(A) concerning the revocation or suspension of the vendor's permit shall not apply to any vendor who is not a responsible vendor under this part, or to a participating vendor, if the vendor or clerk making a sale to a minor fails to comply with the requirements of § 57-5-606. With respect to such permit or license holder, the committee, board, or commission may, at the time it imposes a revocation or suspension, offer the permit or license holder the alternative of paying a civil penalty not to exceed two thousand five hundred dollars ($2,500) for each offense of making or permitting to be made any sales to minors, or a civil penalty not to exceed one thousand dollars ($1,000) for any other offense.
      3. Permanent revocation of beer permits may only be applied when the permit holder has at least two (2) violations within a twelve-month period.
      4. Revocation of beer permits applies only to that permit holder, or agents of the permit holder, at that location. Revocation of beer permits shall not stay with the property if the property changes hands, nor may a city, Class A county or Class B county, or any committee, board or commission created by these governmental bodies, apply penalties, suspensions or revocations to other beer permits held by the permittee at other locations.
      5. Revocation of a beer permit at one (1) location should not be the sole disqualifying factor when considering the issuance of beer permits at other locations.
      6. If, at any location that has been affected by permanent beer permit revocation, the property changes hands and no longer belongs to the permit holder, or agents of the permit holder, the new property owner may apply to the beer board for release of revocation.
      7. If a civil penalty is offered as an alternative to revocation or suspension, where allowed under subdivision (a)(2)(B), the holder shall have seven (7) days within which to pay the civil penalty before the revocation or suspension shall be imposed. If the civil penalty is paid within that time, the revocation or suspension shall be deemed withdrawn. The holder's payment of a civil penalty shall not affect the holder's ability to seek review of the civil penalty pursuant to subsection (d).
    1. A city or county may at any time accept the payment of a civil penalty, not to exceed the amounts set forth in subdivision (a)(2)(B), by a permit or license holder charged with a violation of this chapter, which payment shall be an admission by the holder of the violation so charged and shall be paid to the exclusion of any other penalty that the city or county may impose.
  1. No permit or license shall be revoked on the grounds the operator or any person working for the operator sells beer to a minor over the age of eighteen (18) years if such minor exhibits an identification, false or otherwise, indicating the minor's age to be twenty-one (21) or over, if the minor's appearance as to maturity is such that the minor might reasonably be presumed to be of such age and is unknown to such person making the sale. The license or permit may be suspended for a period not to exceed ten (10) days or a civil penalty up to one thousand five hundred dollars ($1,500) may be imposed pursuant to subdivision (a)(3). However, this shall not be construed in any way to relieve the minor from liability for making such illegal purchase as provided in § 57-5-301.
  2. Such revocation, suspension, or imposition of civil penalty may be made for any violation of any provision of this chapter or whenever it shall satisfactorily appear that the premises of any person, firm or corporation holding a permit or license under this chapter are being maintained and operated in such manner as to be detrimental to public health, safety or morals. The board in considering the suspension or revocation of a license shall consider repeated violations of any local ordinance or state law involving prohibited sexual contact on the premises of an adult oriented establishment.
  3. The action of such agency in connection with the issuance of any order of any kind, including the revocation or suspension of a license or permit, imposition of a civil penalty or the refusal to grant a license or permit under §§ 57-5-105, 57-5-106 and this section, may be reviewed by statutory writ of certiorari, with a trial de novo as a substitute for an appeal, the petition of certiorari to be addressed to the circuit or chancery court of the county in which any such order was issued.
  4. Immediately upon the grant of the writ of certiorari, the agency revoking or suspending a license or permit or imposing a civil penalty shall cause to be made, certified and forwarded to the court a complete transcript of the proceedings in the cause.
  5. This section shall be the sole remedy and exclusive method of review of any action or order that may have been issued by any county legislative body, or any committee appointed by any county legislative body, or from any board or commission authorized under §§ 57-5-105 and 57-5-106, including the refusal or failure to grant any license or permit or the imposition of a civil penalty. The Tennessee Rules of Civil Procedure shall be applicable in connection with such review. Any party dissatisfied with the decree of the court may, upon giving bond as required in other cases, appeal, where the cause shall be heard upon the transcript of the records from the circuit court.
  6. A judge of any court of record shall have the authority to supersede, stay or enjoin any order of an agency revoking, suspending or imposing a civil penalty made under the authority of this chapter for good cause shown on part of the petitioning party thereof. No circuit or chancery judge shall have the authority to grant any such extraordinary writ except the judge of a court of record to which the petition for certiorari is addressed.
  7. If a final judgment is entered by the trial court superseding the revocation or suspension order or order imposing a civil penalty, and the cause is appealed by the agency, the final judgment of the trial court shall remain in force until final appellate disposition of the cause.
  8. In instances involving only wholesale beer permits or licenses, or certificates of registration, the order of the agency suspending, revoking or failing to renew such wholesale beer permits or licenses or certificates of registration or imposing civil penalties shall as a matter of law be stayed or superseded, and the order will not be effective until final judicial review, including all available appeals, of the matter. In instances where no appeal is taken or perfected by the wholesaler within the required time as prescribed by law, the order of the agency shall become effective.
  9. The remedy provided by this section shall be the only method of reviewing orders of county legislative bodies, governing bodies or municipal corporations, boards or committees revoking or suspending licenses issued under this chapter or imposing civil penalties.
  10. Where a permit or license is revoked, no new license or permit shall be issued to permit the sale of beer on the same premises until after the expiration of one (1) year from the date the revocation becomes final and effective. The board, in its discretion, may determine that issuance of a license or permit before the expiration of one (1) year from the date of revocation becomes final is appropriate, if the individual applying for such issuance is not the original holder of the license or any family member who could inherit from such individual under the statute of intestate succession.
  11. Powers to suspend, revoke, or impose civil penalties conferred in this section upon county legislative bodies and governmental bodies of incorporated cities and any committees, commissions, or boards created by such bodies and/or governmental bodies are likewise conferred upon the commissioner of revenue as they may relate to certificates of registration and transportation permits issued by the commissioner under this chapter to any licensed brewer, wholesaler or distributor for the failure of any such person to file with the commissioner any report required by this chapter, or for the filing of a false report, or the failure to pay tax due by any such licensee under this chapter and rules and regulations promulgated pursuant thereto, or for the receipt, possession, storage or transportation of beer in violation of this chapter, or any rule and regulation promulgated by the commissioner thereunder, and for no other reason. The remedy provided by this section shall likewise be the only method of reviewing orders of the commissioner revoking or suspending certificates of registration and transportation permits issued under this chapter or imposing civil penalties.
  12. Any county, municipal or metropolitan beer board or committee may, at its discretion, revoke or suspend the permit of or impose a civil penalty pursuant to subdivision (a)(3) on any beer retailer within its jurisdiction who is found to possess beer on which the state beer barrelage tax, imposed by § 57-5-201, and the city and county wholesale beer tax, imposed by § 57-6-103, has not been paid. The burden of proof shall be upon the retail beer permit holder to show that the two (2) taxes on the beer in the permit holder's possession have been paid by showing that the beer was purchased from a Tennessee beer wholesaler, which fact shall be shown by the retailer providing a bill of sale or invoice for the beer which shall include the name and address of the wholesaler, the name and address of the retailer, the number of containers of each brand of beer purchased by the retailer, and which shall be signed by the retailer.
      1. As a pilot project to terminate July 1, 2014, unless extended by the general assembly, when a local or municipal beer board responsible for controlling the sale of beer or malt beverages within any county included within subsection (p), finds violations, as defined in this chapter, in the sale of beer or malt beverages consumed on-premises of an establishment located within the local or municipal beer board's jurisdiction that result in the beer board suspending the operation of or revoking the permit of the establishment where the violation occurred, the beer board is authorized to notify the executive director of the alcoholic beverage commission by certified mail, return receipt requested, of the action taken by the beer board. Such notice shall include the record of evidence and the determination made by the beer board in suspending or revoking the permit.
      2. Upon receipt of such notice, the executive director of the alcoholic beverage commission shall take the actions required pursuant to § 57-4-202(b) with respect to violations as defined in chapter 4 of this title related to the license for the sale of alcoholic beverages for consumption on the premises at the location where the violation of this chapter occurred.
    1. The suspension or revocation decision of the beer board made pursuant to subdivision (n)(1)(A) is final, and any party aggrieved thereby may appeal the decision of the beer board in accordance with the appeal procedures of this chapter.
    1. As a pilot project to terminate July 1, 2014, unless extended by the general assembly, if, pursuant to § 57-4-202(c), the alcoholic beverage commission sends a certified letter, return receipt requested to the local or municipal beer board responsible for controlling the sale of beer or malt beverages within any county included within subsection (p), providing notice that the commission has suspended or revoked the license of an establishment for a violation of chapter 4 of this title, upon receipt of the certified letter, the beer board shall:
      1. Schedule a hearing for the next regularly scheduled meeting of the beer board to be held at least fourteen (14) days following the date the beer board receives the certified letter to provide an opportunity for the permit holder to appear and show cause why the permit to sell beer on the premises should not be suspended or revoked for violations of this chapter based on actions taken by the alcoholic beverage commission pursuant to § 57-4-202(c); and
      2. Notify the individual or business entity, which is listed as the permit holder at the same location where the alcoholic beverage license had been suspended or revoked, of the date and time of the hearing.
    2. If the beer board finds that a sufficient violation or violations of this chapter have occurred at such location, then the beer board shall suspend or revoke the permit to the same extent and at least for the same period of time as the alcoholic beverage commission has suspended or revoked the license of the establishment pursuant to § 57-4-202(c).
    3. If the permit holder fails to appear or decides to surrender the permit to the beer board in lieu of appearing at the hearing, the permit shall be suspended or revoked by the beer board, and no permit to sell beer or malt beverages on the premises shall be issued by the beer board to any person for the location where the alcoholic beverage commission had suspended or revoked the license pursuant to § 57-4-202(c) for the period of time included in the decision of the alcoholic beverage commission.
    4. The decision of the beer board is final, and any party aggrieved thereby may appeal the decision of the beer board in accordance with this chapter.
  13. The pilot project established by subsections (n) and (o) shall only apply in counties having a population, according to the 2010 federal census or any subsequent federal census, of:

    not less than  nor more than

    6,800 6,900

    19,100 19,150

    22,600 22,675

    32,200 32,300

    35,600 35,700

    51,400 51,500

    56,800 56,900

    336,400 336,500

    432,200 432,300

Acts 1943, ch. 53, § 3; C. Supp. 1950, § 1191.14; Acts 1961, ch. 105, § 2; 1965, ch. 123, § 1; 1965, ch. 321, § 4; 1969, ch. 56, § 1; 1969, ch. 299, § 1; 1971, ch. 21, § 1; 1973, ch. 68, § 7; 1977, ch. 454, § 1; impl. am. Acts 1978, ch. 934, §§ 7, 36; impl. am. Acts 1979, ch. 413, §§ 3, 4; T.C.A. (orig. ed.), § 57-209; Acts 1981, ch. 377, §§ 2-9; 1981, ch. 449, § 2; 1984, ch. 1006, § 7; 1985, ch. 315, § 2; 1989, ch. 147, § 6; 1989, ch. 583, §§ 1-4; 1990, ch. 889, § 1; 1993, ch. 297, § 8; 1993, ch. 349, § 1; T.C.A., §57-5-109; Acts 1996, ch. 641, § 1; 2006, ch. 864, § 11; 2012, ch. 742, § 1; 2012, ch. 881, § 1.

Compiler's Notes. This section may be affected by Tennessee Rules of Appellate Procedure.

Acts 1989, ch. 147, § 12 provided that any and all matters filed or pending as of July 1, 1989, shall be disposed of under prior law.

Acts 1989, ch. 583, § 5 provided the amendment by that act applies to the review of any action or order issued on or after July 1, 1989.

Former §57-5-108, concerning the alcoholic beverage licensing powers of cities, towns and class B counties, was transferred to §57-5-106 in 1993.

For tables of U.S. decennial populations of Tennessee counties, see Volume 13 and its supplement.

Cross-References. Eighteen-year-olds, legal responsibility, alcoholic beverage restrictions on persons under 21, §1-3-113.

Intestate succession, title 31, ch. 2.

Prohibited acts, title 57, ch. 5, part 3.

Textbooks. Gibson's Suits in Chancery (7th ed., Inman), § 664.

Tennessee Jurisprudence, 16 Tenn. Juris., Intoxicating Liquors, §§ 4, 5, 7, 9, 22; 19 Tenn. Juris., Municipal Corporations, § 52.

Law Reviews.

Judicial Review under the Tennessee Uniform Administrative Procedures Act — An Update (Ben H. Cantrell), 13 Mem. St. U.L. Rev. 589 (1984).

Attorney General Opinions. Constitutionality and applicability, OAG 90-77 (8/13/90).

A vendor who is caught selling beer to a minor is subject to criminal penalties imposed by the local criminal court ranging from a class A misdemeanor to a class E felony and is also subject to the suspension or revocation of his permit imposed by the local beer board, OAG 01-062 (4/20/01).

A city controls the traffic of beer within its corporate limits by virtue of its permit-issuing power and the ordinances it passes to delineate and enforce this power; a referendum is not necessary to approve beer sales in an incorporated city and the legislature has not given cities the right to conduct such a referendum, OAG 02-092 (8/28/02).

The imposition of fines greater than fifty dollars by a municipal beer board pursuant to T.C.A. §57-5-108(2)(A) does not implicate Tenn. Const., art. VI, § 14, OAG 05-056 (4/20/05).

All disciplinary powers accorded by T.C.A. §57-5-108(2)(A) are constitutionally available to municipal beer boards, OAG 05-056 (4/20/05).

Implementation of beer permit distance requirement.  OAG 10-98, 2010 Tenn. AG LEXIS 108 (9/15/10).

NOTES TO DECISIONS

1. In General.

These statutes confer upon beer boards the right to revoke for any of the reasons which would disqualify an applicant in the first instance. Midgett v. Smith, 591 S.W.2d 765, 1979 Tenn. LEXIS 530 (Tenn. 1979).

2. Constitutionality.

Contention that this section amounted to class legislation was without merit as traffic in intoxicating liquors, beer and the like may be prohibited altogether, or regulated and restricted in such manner as the legislature may see fit. McClellan v. State, 199 Tenn. 60, 282 S.W.2d 631, 1955 Tenn. LEXIS 428 (1955).

Contention that this section as enacted by the 1943 amendment to Acts 1933, ch. 69, was broader than the caption of the original act was without merit after the section was reenacted by the 1950 Code supplement. McClellan v. State, 199 Tenn. 60, 282 S.W.2d 631, 1955 Tenn. LEXIS 428 (1955).

Acts 1961, ch. 105, amending this section and §57-5-105 so as to provide for review of refusal of beer license by statutory writ of certiorari with trial de novo was not unconstitutional as requiring courts to exercise administrative function in reviewing action of beer boards. Fentress County Beer Board v. Cravens, 209 Tenn. 679, 356 S.W.2d 260, 1962 Tenn. LEXIS 404 (1962).

Court, in reviewing actions of boards as provided by this section, exercises judicial and not administrative functions and does not violate the separation of powers doctrine. Metropolitan Beer Permit Board v. Elkins, 224 Tenn. 237, 453 S.W.2d 769, 1970 Tenn. LEXIS 321 (1970).

It was competent for legislature to provide for review of actions of board by statutory writ of certiorari and the statutory writ was in no way in conflict with the constitutional writ authorized by Tenn. Const., art. VI, § 10, but rather expanded the scope of review. Metropolitan Beer Permit Board v. Elkins, 224 Tenn. 237, 453 S.W.2d 769, 1970 Tenn. LEXIS 321 (1970).

3. Revocation.

4. —Nature and Effect.

The revocation of a license issued under these sections is not for punishment, but because by violation of the conditions under which the license was issued the licensee shows that he was not a proper person to hold it, and such a revocation does not oust the jurisdiction of the courts to inflict fines or terms of imprisonment on the person to whom the license has been issued and who has violated the law by its misuse. Henderson v. Grundy County Beer Committee, 176 Tenn. 397, 141 S.W.2d 901, 1939 Tenn. LEXIS 130 (1940).

Revocation of a license is not intended as a punishment of the holder but to insure as far as possible the decent and orderly conduct of the establishment. Flowers v. Benton County Beer Board, 202 Tenn. 56, 302 S.W.2d 335, 1957 Tenn. LEXIS 363 (1957).

The power of a county legislative body or beer committee to revoke a beer permit is incidental to the power to grant a permit. Henderson v. Grundy County Beer Committee, 176 Tenn. 397, 141 S.W.2d 901, 1939 Tenn. LEXIS 130 (1940).

5. —Hearing.

Although the notice of the hearing to determine whether the permit to sell beer should be revoked did not contain the grounds for revocation, this deficiency did not require reversal since the licensee's husband had been arrested for the sale of beer to minors in her store and furthermore the procedural safeguards under the statutory writ of certiorari with a trial de novo all but obliterate the necessity of notice. Richards v. Lewisburg Alcoholic Beverage Com., 543 S.W.2d 852, 1977 Tenn. LEXIS 520 (Tenn. 1977).

6. —Facts Constituting Grounds.

Board did not err in revoking license to sell beer where licensee sold beer at a tavern not erected until two years after application was filed. Tucker v. Carter County Beer Board, 191 Tenn. 210, 232 S.W.2d 38, 1950 Tenn. LEXIS 566 (1950).

License was properly revoked by board where licensee moved location to a spot some distance away from place designated in application for license and continued to sell beer in violation of provisions of license. Sowell v. Red, 192 Tenn. 681, 241 S.W.2d 775, 1951 Tenn. LEXIS 315 (1951).

Board cannot revoke a permit except for violation of a condition found within the statute. Young v. Warren County Beer Board, 195 Tenn. 211, 258 S.W.2d 763, 1953 Tenn. LEXIS 325 (1953).

Beer board was authorized to revoke license for selling of beer to minors. Evers v. Hollman, 196 Tenn. 364, 268 S.W.2d 97, 1954 Tenn. LEXIS 390, 1954 Tenn. LEXIS 391 (1954).

Board was justified in revoking beer license on the ground that holder of license had allowed persons to congregate in beer place after legal hours and there was evidence that there were six persons in the place after closing time and drunks had been removed from place on several occasions. Presson v. Benton County Beer Board, 198 Tenn. 489, 281 S.W.2d 63, 1955 Tenn. LEXIS 398 (1955).

Where there was material evidence that wholesale beer dealer was selling at retail in addition to the fact that beer was being sold within 2,000 feet of a church, fact that it was not established that there was an ordinance prohibiting sale of beer within 2,000 feet of public gathering places was not material as there was sufficient evidence aside from this to justify beer committee's revocation of permit. Jones v. Sullivan County Beer Board, 200 Tenn. 301, 292 S.W.2d 185, 1956 Tenn. LEXIS 410 (1956).

A county may revoke a beer sale license on the basis of a sale to a minor. Richards v. Lewisburg Alcoholic Beverage Com., 543 S.W.2d 852, 1977 Tenn. LEXIS 520 (Tenn. 1977).

Evidence of illegal drug sales made on premises by employee supported revocation of license by beer board. Williams v. Beer Bd. of Gallatin, 737 S.W.2d 534, 1987 Tenn. LEXIS 973 (Tenn. 1987).

7. —Facts Not Constituting Grounds.

Driving an automobile while under influence of whiskey or other intoxicant is denounced by statute but it is not an act involving moral turpitude and is not ground for revocation of beer permit. Flowers v. Benton County Beer Board, 202 Tenn. 56, 302 S.W.2d 335, 1957 Tenn. LEXIS 363 (1957).

Where beer permit permitted sale by package and not by drink, fact that minors frequented place of business was not ground for revocation of permit where there was nothing to show that they drank or handled beer or any evidence of other improper activities. Flowers v. Benton County Beer Board, 202 Tenn. 56, 302 S.W.2d 335, 1957 Tenn. LEXIS 363 (1957).

Where church was established many years after holder of beer permit was granted such permit, action of beer committee in revoking permit solely because permit holder's place of business was within 2,000 feet of church was arbitrary and unreasonable. Sparks v. Beer Committee of Blount County, 207 Tenn. 312, 339 S.W.2d 23, 1960 Tenn. LEXIS 460 (1960).

Where the statute did not require property owner approval for the granting of a permit, fraud in naming property owners was not a ground for revoking a permit. Young v. Warren County Beer Board, 195 Tenn. 211, 258 S.W.2d 763, 1953 Tenn. LEXIS 325 (1953).

8. —Petition— Status of Signers.

Signers of petition seeking revocation of petitioner's permission to sell beer though not strictly parties to the proceeding were entitled to testify at hearing since they were relators or prosecuting witnesses and were not subject to the rule. Anderson v. Putnam County Beer Board, 184 Tenn. 623, 201 S.W.2d 994, 1947 Tenn. LEXIS 285 (1947).

9. —Ten-Day Revocation.

The statute does not limit revocation of a beer license to 10 days where the prospective underage purchasers did not present identification cards and they did not have the appearance of maturity. Richards v. Lewisburg Alcoholic Beverage Com., 543 S.W.2d 852, 1977 Tenn. LEXIS 520 (Tenn. 1977).

Where all of the minors admitted in violation of the law were under 18 years of age, the trial judge erroneously applied T.C.A. §57-5-108 (b) in limiting the suspension of license to 10 days for the violation. Metropolitan Beer Permit Bd. etc. v. Jones, 625 S.W.2d 267, 1981 Tenn. LEXIS 507 (Tenn. 1981).

10. —Enjoining Revocation.

Chancellor did not have jurisdiction of bill to enjoin revocation of permit to sell beer held by petitioner on the ground that beer board was not legally created since remedy to prevent revocation of permit was by certiorari to circuit court. Crowe v. Carter County, 195 Tenn. 659, 263 S.W.2d 509, 1953 Tenn. LEXIS 393 (1953).

11. Bill in Chancery Questioning Election of Board.

Beer licensee, whose license was about to be revoked by new beer committee was not entitled to file bill in chancery for the purpose of determining validity of election of beer committee since right of review for revocation of beer license is by certiorari addressed to circuit court. State ex rel. Thurman v. Scott, 184 Tenn. 76, 195 S.W.2d 617, 1946 Tenn. LEXIS 262 (1946).

12. Review.

In proceeding to review action of county beer board for revocation of beer permit the proceeding is under the common-law writ of certiorari and only question before reviewing court is whether the board acted fraudulently, illegally or exceeded its jurisdiction. Putnam County Beer Board v. Speck, 184 Tenn. 616, 201 S.W.2d 991, 1947 Tenn. LEXIS 284 (1947).

The scope of review of the action of county beer board in revoking license was the determination of whether such action was arbitrary or illegal. Sowell v. Red, 192 Tenn. 681, 241 S.W.2d 775, 1951 Tenn. LEXIS 315 (1951).

This section expressly limits judicial review of actions of county beer boards to that provided by the common-law writ of certiorari. Sowell v. Red, 192 Tenn. 681, 241 S.W.2d 775, 1951 Tenn. LEXIS 315 (1951); Bragg v. Boyd, 193 Tenn. 507, 246 S.W.2d 575, 1952 Tenn. LEXIS 317 (1952).

Where both parties brought error upon action of circuit judge in remanding cause to county beer board for final and proper order, their appeals were properly taken from circuit court directly to supreme court. Bragg v. Boyd, 193 Tenn. 507, 246 S.W.2d 575, 1952 Tenn. LEXIS 317 (1952).

Evidence of matters that arose after the hearing of the board revoking license cannot be considered by the circuit court on review, but only whether the record before the board justified the revocation. Black v. Nashville, 197 Tenn. 544, 276 S.W.2d 718, 1955 Tenn. LEXIS 314 (1955).

Action in chancery court to enjoin city and board from appealing decision of circuit court which restored beer license revoked by board, was a collateral attack on judgment of another court which was improper since the proper method for correcting errors of a court is by appeal. Black v. Nashville, 197 Tenn. 544, 276 S.W.2d 718, 1955 Tenn. LEXIS 314 (1955).

The scope of review under this section is expressly limited to that prescribed by the common-law writ of certiorari. Chanaberry v. Gordy, 200 Tenn. 220, 292 S.W.2d 18, 1956 Tenn. LEXIS 398 (1956).

The writ of certiorari plainly and clearly applies where the board or officers acting as such have exceeded the jurisdiction conferred upon them by statute or where they are acting arbitrarily and illegally. Chanaberry v. Gordy, 200 Tenn. 220, 292 S.W.2d 18, 1956 Tenn. LEXIS 398 (1956).

Circuit court did not err in not requiring beer board to file complete transcript of proceedings where additional testimony would have been cumulative on the issue of the way and manner in which licensee conducted his business. Flowers v. Benton County Beer Board, 202 Tenn. 56, 302 S.W.2d 335, 1957 Tenn. LEXIS 363 (1957).

Review under this section is limited to a determination of whether the administrative board acted fraudulently, illegally or exceeded its jurisdiction. Shelton v. Mooneyhan, 205 Tenn. 425, 326 S.W.2d 825, 1959 Tenn. LEXIS 380 (1959).

Motion for new trial was necessary for supreme court to review action of circuit court in sustaining county beer board in revoking beer license. Shelton v. Mooneyhan, 205 Tenn. 425, 326 S.W.2d 825, 1959 Tenn. LEXIS 380 (1959).

Where there was no dispute about the facts, and facts appeared in petition for certiorari filed in the circuit court, and the statute permitted no additional evidence to be heard in circuit court, transcript of record properly certified by county clerk and then by clerk of circuit court constituted adequate bill of exceptions and became a part of the technical record without the necessity of any further identification or order by circuit judge, and motion to dismiss appeal to supreme court on ground that no bill of exceptions was filed was without merit. Shelton v. Mooneyhan, 205 Tenn. 425, 326 S.W.2d 825, 1959 Tenn. LEXIS 380 (1959).

Obligation to see that application for permit or other papers which were before beer board were sent up to superior court was upon person who filed petition for certiorari. Hughes v. Little, 213 Tenn. 574, 376 S.W.2d 482, 1964 Tenn. LEXIS 424 (1964).

Motion for new trial is not a prerequisite to appeal to supreme court from trial court's review of action of beer committee on granting, denying or revoking beer permit. Chadwick v. Beer Committee of Anderson County, 213 Tenn. 592, 376 S.W.2d 490, 1964 Tenn. LEXIS 426 (1964).

Where, upon review of action of city beer permit board, chancellor did not weigh the evidence but merely found that the board did not act “illegally, capriciously or unreasonably” in refusing permit, the case was reversed and remanded for a trial de novo of the issues had upon such proof as the parties might desire to introduce pursuant to the provisions of §27-9-111. Case v. Carney, 213 Tenn. 597, 376 S.W.2d 492, 1964 Tenn. LEXIS 427 (1964).

On appeal to the supreme court the action of the trial judge in granting or denying an application for a beer permit is presumed to be correct, and the judgment of the trial judge will not be reversed unless the evidence preponderates against the judgment. Memphis Alcohol Com. v. Randall Memorial Free Will Baptist Church, Inc., 550 S.W.2d 657, 1977 Tenn. LEXIS 539 (Tenn. 1977).

Where no reason existed for the denial of a beer permit except a distance requirement which was invalidated by the chancery court, the conduct of the city council, acting as a beer board, from and after the date of the court's invalidation was tantamount to a denial of the application without good cause; and a petition for certiorari was timely filed by the applicant for the permit after the city council refused to dispose of the application as ordered by the chancery court, and the chancery court was entitled to treat the petition for certiorari as equivalent to one filed under this section for review of the denial of a permit. Murfreesboro v. Fortner, 570 S.W.2d 859, 1978 Tenn. LEXIS 638 (Tenn. 1978).

Under T.C.A. §§57-5-105 and57-5-108 the decree of a trial court granting or denying a beer permit comes to the appellate court accompanied by a presumption of correctness and the burden is upon the appellant to show that the evidence preponderates against the judgment of the trial court. Hinkle v. Montgomery, 596 S.W.2d 800, 1980 Tenn. LEXIS 439 (Tenn. 1980).

In reviewing a judgment of a trial court in cases involving beer permits, the evidence before the beer board is of no consequence, since the matter is heard in a trial de novo in the circuit or chancery court. McCarter v. Goddard, 609 S.W.2d 505, 1980 Tenn. LEXIS 515 (Tenn. 1980).

Failure of agency to make timely filing of transcript did not warrant reversal of permit revocation where permittee was not prejudiced by the delay. Cooper v. Alcohol Com. of Memphis, 745 S.W.2d 278, 1988 Tenn. LEXIS 7 (Tenn. 1988).

13. —Court Rules.

The specific mandates of T.C.A. §57-5-108 take precedence over the general provisions of the appellate rules. Cooper v. Alcohol Com. of Memphis, 745 S.W.2d 278, 1988 Tenn. LEXIS 7 (Tenn. 1988).

The Tennessee Rules of Appellate Procedure, not the Tennessee Rules of Civil Procedure, are applicable to circuit and chancery courts in reviewing beer board cases. Cooper v. Alcohol Com. of Memphis, 745 S.W.2d 278, 1988 Tenn. LEXIS 7 (Tenn. 1988).

14. Trial de Novo.

Under the 1961 amendment to this section a person aggrieved by the action of a beer board has the sole remedy of having the same reviewed in either the circuit or chancery court by statutory writ of certiorari with trial de novo as a substitute for appeal with the cause being tried as if it had originated in such court and the trial judge is required to make an independent judgment of the merits substituting his judgment for that of the beer board. Cantrell v. De Kalb County Beer Board, 213 Tenn. 568, 376 S.W.2d 480, 1964 Tenn. LEXIS 423 (1964); Hughes v. Little, 213 Tenn. 574, 376 S.W.2d 482, 1964 Tenn. LEXIS 424 (1964); Chadwick v. Beer Committee of Anderson County, 213 Tenn. 592, 376 S.W.2d 490, 1964 Tenn. LEXIS 426 (1964); Case v. Carney, 213 Tenn. 597, 376 S.W.2d 492, 1964 Tenn. LEXIS 427 (1964); Ewin v. Richardson, 214 Tenn. 628, 382 S.W.2d 532, 1964 Tenn. LEXIS 515 (1964).

Applicant for beer permit was entitled to trial de novo in circuit court on merits of his application and where circuit court merely found that beer board did not act arbitrarily, capriciously, illegally or in excess of its jurisdiction the cause would be remanded for a trial de novo on the issues. Ewin v. Richardson, 214 Tenn. 628, 382 S.W.2d 532, 1964 Tenn. LEXIS 515 (1964).

“Trial de novo” means the cause is tried as if it originated in the circuit or chancery court: the judge substitutes his judgment for that of the beer board. Richards v. Lewisburg Alcoholic Beverage Com., 543 S.W.2d 852, 1977 Tenn. LEXIS 520 (Tenn. 1977).

15. Certiorari.

If a board tables an application for a permit for reasons completely extraneous to the qualifications of an applicant such that further pursuit of a permit through administrative channels would be futile, then the courts should grant the writ of certiorari. McCarter v. Goddard, 609 S.W.2d 505, 1980 Tenn. LEXIS 515 (Tenn. 1980).

16. —Writ Properly Granted.

A county beer board clearly acted in excess of its authority when it tabled an application for a permit in order to consider building setback regulations, and where counsel for the applicant raised his objection in a timely manner when the board took the setback problem under consideration, the chancellor was correct in granting the writ of certiorari. McCarter v. Goddard, 609 S.W.2d 505, 1980 Tenn. LEXIS 515 (Tenn. 1980).

17. —Writ Not Available.

Insofar as the tabling action functions as a notice of a continuance, it is not an order and a writ of certiorari under this section cannot be granted. McCarter v. Goddard, 609 S.W.2d 505, 1980 Tenn. LEXIS 515 (Tenn. 1980).

18. Final Order.

Under certain circumstances a tabling action by the board can operate as a final order. McCarter v. Goddard, 609 S.W.2d 505, 1980 Tenn. LEXIS 515 (Tenn. 1980).

19. Refusal to Grant Permit.

If a board needlessly prolongs an application for permit by tabling it, the board has in effect denied the application. McCarter v. Goddard, 609 S.W.2d 505, 1980 Tenn. LEXIS 515 (Tenn. 1980).

20. Applicant's Rights Pending Review.

An applicant who has been denied a permit is not entitled to a temporary permit when the trial court has reversed the board and the board has appealed. Watkins v. Naifeh, 635 S.W.2d 104, 1982 Tenn. LEXIS 416 (Tenn. 1982).

57-5-109. Proximity to schools, residences, churches, places of public gatherings.

  1. A city or county shall not suspend, revoke or deny a permit to a business engaged in selling, distributing or manufacturing beer on the basis of the proximity of the business to a school, residence, church, or other place of public gathering if a valid permit had been issued to any business on that same location. This section shall not apply if beer is not sold, distributed or manufactured at that location during any continuous six-month period.
  2. For the purposes of this section, “on that same location” means within the boundaries of the parcel or tract of the real property on which the business was located. This section applies whether or not a business moves the building on the location and whether or not the business was a conforming or nonconforming use at the time of the move.
  3. If a business applies for a beer permit within the continuous six-month period referenced in this section, and if the city or county denies the business a permit and if the business appeals that denial, a new six-month continuous sale period shall begin to run on the date when the appeal of that denial is final.

Acts 1993, ch. 297, § 9; 1997, ch. 560, § 1; 2002, ch. 744, § 1; 2004, ch. 598, § 2.

Compiler's Notes. Former §57-5-109, concerning the revocation of alcoholic beverage permits and licenses, was transferred to §57-5-108 in 1993.

Attorney General Opinions. Distance requirements for beer sales in Washington County, OAG 94-110 (10/6/94).

Loss of grandfathered beer permit status, OAG 98-022 (1/23/98); OAG 98-069 (3/25/98).

A county can reestablish a beer permit distance rule without revoking a permit to sell beer previously issued to a business that does not meet that rule, and the continued existence of such a “grandfathered” permit will not invalidate the reinstatement of the rule or imposition of a new distance rule, OAG 01-157 (10/25/01).

If a county legislative body had passed a resolution prohibiting the issuance of a beer permit for locations within two thousand feet of schools, churches, or other places of public gathering, and later issued permits in violation of such distance requirement, it could not at a later date readopt such a distance restriction, the effect of which would basically grandfather all such permits without revoking all permits issued in violation of the earlier adopted distance, OAG 04-012 (2/03/04).

A county legislative body may adopt a distance requirement of less than two thousand feet by setting the distance at a point which would basically grandfather all permits issued in violation of an earlier two thousand foot distance, OAG 04-012 (2/03/04).

NOTES TO DECISIONS

1. Construction.

The grandfather provision in T.C.A. §57-5-109 had to be construed narrowly, and, as a result of the method of measuring distance employed by the metropolitan code, the phrase “on that same location” required that the corporation's new building in which beer was sold be situated in compliance with the earlier distance regulation so as to remain consistent with the grandfather exemption from the beer permit requirements; because the new beer store was located less than 100 feet from a daycare center in violation of the metropolitan code, the corporation was not entitled to the benefit of the grandfather clause. Exxonmobil Oil Corp. v. Metro. Gov't of Nashville & Davidson County, 246 S.W.3d 31, 2005 Tenn. App. LEXIS 375 (Tenn. Ct. App. June 28, 2005), appeal denied, — S.W.3d —, 2005 Tenn. LEXIS 1143 (Tenn. 2005)

In amending T.C.A. §57-5-109, regarding beer licenses, the general assembly clarified its intent regarding the definition of “on that same location,” defining the phrase differently from the Tennessee Supreme Court; it also clarified the situation with regard to prior use to which T.C.A. §57-5-109 would apply. Exxonmobil Oil Corp. v. Metro. Gov't of Nashville & Davidson County, 246 S.W.3d 31, 2005 Tenn. App. LEXIS 375 (Tenn. Ct. App. June 28, 2005), appeal denied, — S.W.3d —, 2005 Tenn. LEXIS 1143 (Tenn. 2005).

2. Application.

Protection of T.C.A. §57-5-109 was not available to a county beer board to justify the continuation of the discriminatory practice of issuing beer permits to nonconforming locations. Exxonmobil Oil Corp. v. Metro. Gov't of Nashville & Davidson County, 246 S.W.3d 31, 2005 Tenn. App. LEXIS 375 (Tenn. Ct. App. June 28, 2005), appeal denied, — S.W.3d —, 2005 Tenn. LEXIS 1143 (Tenn. 2005)

Pursuant to T.C.A. §57-5-109(c), a company was not precluded from a permit due to its cessation of beer sales during the litigation over its permit applications where it filed its second application within six months of the Tennessee Supreme Court's decision upholding the denial of its first permit and the pendency of the proceeding during the first permit application stayed the running of the six-month period. Exxonmobil Oil Corp. v. Metro. Gov't of Nashville & Davidson County, 246 S.W.3d 31, 2005 Tenn. App. LEXIS 375 (Tenn. Ct. App. June 28, 2005), appeal denied, — S.W.3d —, 2005 Tenn. LEXIS 1143 (Tenn. 2005).

Where a company purchased a business that had sold beer under a valid license granted prior to January 1, 1993, a city and county beer board had no authority to deny a company's second license application on the basis that its new building contravened Metro. Gov't Nashville & Davidson County, Tenn., Code Laws § 7.08.090(A)(1)'s 100-foot proximity requirement by being only 84 feet from a daycare center because doing so contravened T.C.A. §57-9-105 as amended and exceeded the board's statutory authority. Exxonmobil Oil Corp. v. Metro. Gov't of Nashville & Davidson County, 246 S.W.3d 31, 2005 Tenn. App. LEXIS 375 (Tenn. Ct. App. June 28, 2005), appeal denied, — S.W.3d —, 2005 Tenn. LEXIS 1143 (Tenn. 2005).

If an applicant for a beer license meets the conditions set out in T.C.A. §57-5-109, it is entitled to the protection of T.C.A. §57-5-109, and a county beer board is prohibited from denying its application on the basis of the proximity restrictions in Metro. Gov't Nashville & Davidson County, Tenn., Code Laws § 7.08.090(A)(1). Exxonmobil Oil Corp. v. Metro. Gov't of Nashville & Davidson County, 246 S.W.3d 31, 2005 Tenn. App. LEXIS 375 (Tenn. Ct. App. June 28, 2005), appeal denied, — S.W.3d —, 2005 Tenn. LEXIS 1143 (Tenn. 2005).

57-5-110. Bonds of warehousemen, dealers and manufacturers — Terms and conditions — Alternative collateral.

  1. All persons, firms, corporations, joint-stock companies, syndicates or associations in this state storing, selling, distributing and/or manufacturing beer in this state shall execute a bond securing the payment of the taxes levied, as the state privilege tax, under provisions hereof, the bond to be payable to the commissioner of revenue and to be signed by some solvent surety company residing in or having an office and agent in this state, and to be approved by the commissioner.
  2. Such bond shall be conditioned upon and posted to secure the proper payment of all taxes for which the taxpayer may become liable during the taxpayer's initial license period of twelve (12) months, in the minimum penal sum of twenty thousand dollars ($20,000); provided, that after monthly reports have been received by the department which cover the initial three (3) full months of such person's operating experience, the penal sum may, upon written request of the taxpayer, be adjusted to an amount equal to no less than twice the amount of the tax required to be paid by such person per month and shall be determined by averaging such tax over the period of months immediately preceding the adjustment. If, at any time after the initial three (3) months operating experience, the commissioner shall determine the average monthly tax liability of a taxpayer to be greater than twenty thousand dollars ($20,000), the taxpayer shall be required to immediately file a rider to the taxpayer's bond to increase the penal sum of the bond to two (2) times the taxpayer's average monthly tax liability as determined by the commissioner.
  3. If, at any time after the execution of the bond, the surety thereon shall become insolvent, the commissioner may require the execution of a new bond with good and solvent surety in the same manner and with the same penalty as aforementioned, and subject to the approval of the commissioner, and any person executing a bond under this chapter may, at any time prior to default under any existing bond, apply to the commissioner for cancellation of the existing bond and for leave to file a new bond with new surety thereon in accordance with the provisions aforementioned, and shall have the right to file such new bond, at such time, by and with the approval of the commissioner.
  4. In lieu of a corporate surety on such bond as required by subsection (a), the commissioner may allow the applicant to secure such bond by depositing collateral in the form of a certificate of deposit as accepted and authorized by the banking laws of this state, which has a face value equal to the amount of the bond. Such collateral may be deposited with any authorized state depository designated by the commissioner.
    1. If a taxpayer has been in continuous operation for three (3) consecutive years and during the preceding six (6) months has paid the special privilege tax in § 57-5-201(a)(1), for which the taxpayer is liable within the time period for payment set by the statute or rule, then the taxpayer shall not be required to execute and maintain any bond required by this section.
    2. Any taxpayer exempted from the bonding requirement of this section who fails to pay the special privilege tax in § 57-5-201(a)(1), within the time period for payment set by statute or rule shall, upon such failure, be required to execute and maintain a bond as required in this section.

Acts 1933, ch. 69, § 6; C. Supp. 1950, § 1191.6; impl. am. Acts 1959, ch. 9, § 14; T.C.A. (orig. ed.), § 57-206; Acts 1983, ch. 379, §§ 1-3; 1986, ch. 676, § 2; 1988, ch. 519, § 1; 1992, ch. 607, § 1; 1993, ch. 297, § 6; T.C.A., §57-5-106.

Compiler's Notes. Former §57-5-110 (Acts 1980, ch. 771, § 1), concerning alcoholic beverage licensee's responsibility to prominently display sign warning of felonious consequences of carrying weapon onto premises where alcoholic beverages are sold or served, was repealed by Acts 1987, ch. 259, § 1.

Former §57-5-110 was transferred to §57-5-109 in 1993.

57-5-111. Homemade beer.

  1. For purposes of this section:
    1. “Beer” has the same meaning as the term is defined in § 57-5-101(b); and
    2. “Homemade,” with respect to the making of beer, means beer made by a person's own efforts and not for a commercial purpose, but does not require that the beer be made in the person's home.
    1. No license or permit shall be required under this title for the making of homemade beer, and the possession, transportation, or storage of homemade beer, by any person if all of the following apply:
      1. The person who makes the beer receives no compensation;
      2. The beer is not sold or offered for sale; and
      3. The total quantity of beer made, in a calendar year, by the person and any other person living in the same household does not exceed one hundred gallons (100 gal.) if the household has only one (1) person of legal drinking age or two hundred gallons (200 gal.) if the household has two (2) or more persons of legal drinking age.
    2. A person who makes, possesses, transports, or stores beer in compliance with the limitations specified in subdivision (b)(1) is not a manufacturer of beer for purposes of this chapter.
    3. Any homemade beer in compliance with subdivision (b)(1) that is being transported shall be clearly identified as homemade beer.
    4. Homemade beer made in compliance with the limitations in subdivision (b)(1) may be consumed by the person who made it and the person's family, neighbors, and friends at any private residence or other private location where the possession and consumption of beer is permissible under this chapter, local ordinances, or other applicable law. This subdivision (b)(4) does not apply to licensed premises under this chapter.
  2. The use of homemade beer made in compliance with the limitations specified in subdivision (b)(1) is allowed for purposes of exhibition, demonstration, judging, tasting, or sampling or as part of a contest or competition, if the exhibition, demonstration, judging, tasting, sampling, contest, or competition is held at a private residence or on a licensed premises. Homemade beer used for purposes described in this subsection (c), including the submission or consumption of such beer, shall not be considered sold or offered for sale, and any prize awarded at a contest or competition or as a result of an exhibition, demonstration, judging, tasting, or sampling shall not be considered compensation. No fee may be charged for consumption of the homemade beer at the exhibition, demonstration, judging, tasting, sampling, contest, or competition; provided, however, an entrance fee may be charged to persons attending an exhibition, contest, or competition.
    1. Notwithstanding any law to the contrary, a person who is not a permit holder under this chapter may, at a private residence, and a person who is a permit holder under this chapter may, on the permitted premises, conduct, sponsor, or host a contest, competition, or other event for the exhibition, demonstration, judging, tasting, or sampling of homemade beer made in compliance with the limitations specified in subdivision (b)(1) if the person does not sell the beer and, unless the person is the maker of the beer, does not acquire any ownership interest in the beer.
    2. No fee may be charged for consumption of homemade beer at the contest, competition, or other event; provided, however, an entrance fee may be charged to persons attending a contest, competition, or other event.
    3. If the contest, competition, or other event is held on a permitted premises, the permit holder may allow the homemade beer to be stored on the premises if the homemade beer is clearly identified and kept separate from any alcoholic beverages or beer owned by the permit holder. Any homemade beer stored on the premises shall be removed within twenty-four (24) hours after the contest, competition, or other event has ended.
  3. Any city or county may regulate contests, competitions, or other events for the exhibition, demonstration, judging, tasting, or sampling of homemade beer as described in subsection (d), including requiring a permit for the contests, competitions, or other events.
  4. No taxes levied or collected pursuant to this title shall be applicable to any homemade beer made in compliance with subdivision (b)(1).

Acts 2015, ch. 69, § 1.

Compiler's Notes. Former §57-5-111, concerning the sale of beer by hotels and motels to guests, was transferred to §57-5-107 in 1993.

57-5-112. Beer container size — Labeling.

  1. Any wholesaler or retailer selling or distributing any product regulated under this chapter in a twenty-five and four-tenths ounce (25.4 oz.) container may distribute such container only if the container has affixed to it a label, printed in at least three-sixteenths inches (3/16") type, which states “flavored beer.” Nothing herein shall be construed to impose upon a brewer or importer the duty to affix the labels required under this subsection (a) prior to sale to a wholesaler.
  2. Any retail permittee or licensee under this title which elects to distribute any beer product in a twenty-five and four-tenths ounce (25.4 oz.) container is prohibited from indicating, directly or indirectly, that the product is not a flavored beer product. Any retail permittee or licensee violating this section shall be subject to sanctions imposed by law.

Acts 1997, ch. 560, § 2; 1998, ch. 857, § 1.

57-5-113. Sale of beer allowed any time authorized to sell liquor and wine — Beer permit required.

Any establishment that is permitted to sell liquor or wine for on-premises consumption pursuant to chapter 4 of this title shall be allowed to sell beer at any time the establishment is legally authorized to sell liquor or wine; provided, that the establishment has lawfully obtained a beer permit from the appropriate jurisdiction.

Acts 2011, ch. 27, § 1.

57-5-114. Separate license for distribution of high alcohol content beer not required.

Any wholesale distributor of beer that has a valid wholesale license pursuant to this chapter is not required to obtain a separate license for the distribution of high alcohol content beer from the commission.

Acts 2017, ch. 443, § 4.

Part 2 Taxation

57-5-201. Barrel tax — Retailers to deal exclusively with Tennessee wholesalers and manufacturers. [Certain provisions subject to contingent repeal. See (a)(2).]

    1. Every person, firm, corporation, joint-stock company, syndicate or association in this state storing, selling, distributing, or manufacturing such beer or other beverages as are described in this chapter shall pay a special privilege tax, in addition to all other taxes, in an amount equal to four dollars and twenty-nine cents ($4.29) per barrel of thirty-one liquid gallons (31 gals.) stored, sold, distributed by gift or sale or manufactured in this state; provided, that the rate shall be reduced by fifty cents (50¢) on July 1 of any year following the enactment of any state or federal law that imposes mandatory deposits by consumers on beverage containers sold in this state or on July 1, 2022, whichever occurs first. The tax upon barrels containing more or less than thirty-one gallons (31 gals.) shall be at a proportionate rate. Beer or other such beverage manufactured in Tennessee and thereafter exported for sale, distribution or gift, or dispensed gratuitously and consumed on the premises, shall not be included in the measure of the tax liability hereby provided for. The commissioner of revenue is authorized to promulgate rules and regulations for the purpose of securing the exemption hereby given and for the purpose of preventing such exemption from being claimed in the case of beer sold, distributed or given away in Tennessee. The burden shall be on the manufacturer claiming exemption to establish to the satisfaction of the collection officers that the beverage manufactured in Tennessee is exempt under this subsection (a).
    2. Notwithstanding any provision of this section or law to the contrary, any revenue generated from the increase in tax rates from three dollars and forty cents ($3.40) to three dollars and ninety cents ($3.90) shall be allocated to the highway fund for the purpose of funding programs for the prevention and collection of litter and trash and matters related thereto. No later than March 31 of each year, the department of transportation shall transmit to the governor, and the speakers of the house of representatives and senate a report listing the programs receiving funds generated by this subsection (a), the amount of funds received by each program, and the purpose for which the funds were spent. This subdivision (a)(2) shall be repealed on July 1 of any year following the enactment of any state or federal law that imposes mandatory deposits by consumers on beverage containers sold in this state or on July 1, 2022, whichever occurs first.
  1. The tax levied in subsection (a) shall be a state tax and no county, municipality or taxing district shall have power to levy any like tax. This tax shall not apply to beverages previously used as a measure of tax under the provisions hereof.
  2. No retail dealer of beer, as defined in § 57-5-101(b), shall purchase beer from anyone other than a licensed wholesaler located in this state, and all such purchases shall be delivered by the wholesaler to the retailer's licensed premises only or directly to the retailer at the wholesaler's licensed premises. No wholesale distributor of beer shall purchase beer from anyone other than a licensed manufacturer, importer, or other wholesaler holding a permit issued pursuant to § 57-5-101, and all such purchases shall be delivered only at a warehouse facility owned or operated by the wholesaler and located within this state. Anyone importing or causing to be imported any beer, as defined in § 57-5-101(b), shall be liable as other wholesale distributors or dealers hereunder.
  3. Anything to the contrary notwithstanding, a retail dealer of beer as defined in § 57-5-101(b) may purchase such beverages directly from a manufacturer located in Tennessee, licensed hereunder, if the sale of such beverages by the manufacturer directly to retailers is authorized by law pursuant to § 57-5-101.

Acts 1933, ch. 69, § 2; 1937, ch. 88, § 1; 1945, ch. 69, § 1; 1947, ch. 109, § 1; C. Supp. 1950, § 1191.2; impl. am. Acts 1959, ch. 9, § 14; Acts 1969, ch. 212, § 1; 1973, ch. 6, § 1; T.C.A. (orig. ed.), § 57-213; Acts 1981, ch. 307, §§ 1, 4; 1984, ch. 769, § 2; 1987, ch. 33, § 1; 1991, ch. 30, § 1; 1994, ch. 864, §§ 1, 2; 1995, ch. 2, § 1; 1999, ch. 81, §§ 1, 2; 2002, ch. 856, § 1b; 2005, ch. 86, § 1; 2010, ch. 616, § 1; 2014, ch. 861, §§ 9, 10; 2015, ch. 19, § 3; 2016, ch. 704, §§ 1, 2.

Compiler's Notes. Acts 1987, ch. 33, § 1 provided that the provisions of §§57-5-201 and67-4-402, containing the tax increases imposed by Acts 1981, ch. 307, and extended by Acts 1984, ch. 769, shall continue in effect until June 30, 1991, or until June 30 of any year following the enactment of any state or federal law which imposes mandatory deposits by consumers on beverage containers sold in Tennessee, notwithstanding any other provision of law to the contrary.

Acts 1991, ch. 30, § 1, effective June 1, 1991, provided that the provisions of this section and §67-4-402, containing the tax increases imposed by Acts 1981, ch. 307, and extended by Acts 1984, ch. 769 and Acts 1987, ch. 33, shall continue in effect until June 30, 1995, or until June 30 of any year following the enactment of any state or federal law which imposes mandatory deposits by consumers on beverage containers sold in Tennessee, notwithstanding any other provision of law to the contrary.

Acts 1991, ch. 30, § 2 provided that § 1 of that act applies to all returns for taxes filed on or after June 1, 1991.

Acts 1995, ch. 2, § 1, effective June 1, 1995, provided that the provisions of this section and §67-4-402, containing the tax increases imposed by Acts 1981, ch. 307, and extended by Acts 1984, ch. 769 and Acts 1987, ch. 33, and Acts 1991, ch. 30, shall continue in effect until June 30, 1999, or until June 30 of any year following the enactment of any state or federal law which imposes mandatory deposits by consumers on beverage containers sold in Tennessee, notwithstanding any other provision of law to the contrary.

Acts 1995, ch. 2, § 2 provided that § 1 of that act applies to all returns for taxes filed on or after June 1, 1995.

Acts 1999, ch. 81, § 1, effective June 1, 1999, provided that the provisions of this section and §57-5-201, containing the tax increases imposed by Acts 1981, ch. 307, and extended by Acts 1984, ch. 769, Acts 1987, ch. 33, Acts 1991, ch. 30, and Acts 1995, ch. 2 shall continue in effect until June 30, 2005, or until June 30 of any year following the enactment of any state or federal law which imposes mandatory deposits by consumers on beverage containers sold in Tennessee, notwithstanding any other provision of law to the contrary.

Acts 1999, ch. 81, § 3 provided that the amendment in that act, adding the last sentence of (a)(2), shall apply to all tax returns filed on or after June 1, 1999.

Acts 2002, ch. 856, § 10, effective July 4, 2002, provided that notwithstanding any provision of law to the contrary, the commissioner of revenue is authorized to waive tax liability and associated interest and penalties otherwise imposed for failure to pay taxes levied pursuant to that act in a timely manner, but only to the extent that the taxpayer or vendor can demonstrate, to the commissioner's satisfaction, that the taxpayer's or vendor's noncompliance with the requirements of the act unavoidably and directly resulted from the close proximity of the effective date of the act with implementation of the increase in tax rates or items or activities taxed pursuant to the provisions of the act. Section 14(j) of the act provided that § 10 be repealed effective September 2, 2002.

Acts 2002, ch. 856, § 13 provided that no expenditure of public funds pursuant to that act shall be made in violation of the provisions of Title VI of the Civil Rights Act of 1964, as codified in 42 U.S.C. § 2000d.

Acts 2005, ch. 86, § 1, effective June 1, 2005, provided that the provisions of this section and §67-4-402, containing the tax increases imposed by Acts 1981, ch. 307, and extended by Acts 1984, ch. 769, Acts 1987, ch. 33, Acts 1991, ch. 30, Acts 1995, ch. 2, and Acts 1999, ch. 81 shall continue in effect until June 30, 2010, or until June 30 of any year following the enactment of any state or federal law which imposes mandatory deposits by consumers on beverage containers sold in Tennessee, notwithstanding any other provision of law to the contrary, and shall apply to all tax returns filed on or after June 1, 2005.

Acts 2010, ch. 616, § 1, effective June 1, 2010, provided that the provisions of this section and 67-4-402, containing the tax increases imposed by Acts 1981, ch. 307, and extended by Acts 1984, ch. 769, Acts 1987, ch. 33, Acts 1991, ch. 30, Acts 1995, ch. 2, Acts 1999, ch. 81 and Acts 2005, ch. 86, shall continue in effect until June 30, 2016, or until June 30 of any year following the enactment of any state or federal law which imposes mandatory deposits by consumers on beverage containers sold in Tennessee, notwithstanding any other provision of law to the contrary; and Acts 2010, ch. 616, 2 provided that the act shall apply to all tax returns filed on or after June 1, 2010.

Acts 2016, ch. 704 § 2, which amended subdivision (a)(2), provided that subdivision (a)(2)  shall be repealed on July 1 of any year following the enactment of any state or federal law that imposes mandatory deposits by consumers on beverage containers sold in this state or on July 1, 2022, whichever occurs first.

Acts 2016, ch. 704 § 5 provided that it  is the legislative intent that the temporary taxes contained in §§57-5-201 and67-4-402, and first imposed by Acts 1981, ch. 307,  are reenacted and extended in accordance with the act which amended this section.

Acts 2016, ch. 704 § 6 provided that the act, which amended this section, shall apply to all tax returns filed on or after June 1, 2016.

Cross-References. Privilege tax on bottlers and manufacturers of soft drinks, §67-4-402.

Work on roads by prisoners, funding, §41-2-123.

Law Reviews.

An Examination of The Tennessee Law of Administrative Procedure (George Street Boone), 1 Vand. L. Rev. 339.

A Focus on Taxes: The Tennessee Tax Reform Act of 2002 Explained, 38 No. 9 Tenn. B.J. 12 (2002).

Building a House of Cards: A Policy Evaluation of Tennessee's Tax Reform Act of 2002 with Emphasis on Fairness to the Poor (Robert F. Parsley), 70 Tenn. L. Rev. 1177 (2003).

NOTES TO DECISIONS

1. Constitutionality and Validity.

This section did not impose a burden on interstate commerce merely because a small percentage of the products of a company paying the tax was shipped out of state. Lindsey v. William Gerst Brewing Co., 168 Tenn. 62, 73 S.W.2d 703, 1934 Tenn. LEXIS 20 (1934).

This section did not violate U.S. Const., amend. 18 or the federal statutes thereunder. Lindsey v. William Gerst Brewing Co., 168 Tenn. 62, 73 S.W.2d 703, 1934 Tenn. LEXIS 20 (1934).

This section, imposing a privilege tax upon the manufacture of beer, was not rendered invalid by the National Recovery Act. Lindsey v. William Gerst Brewing Co., 168 Tenn. 62, 73 S.W.2d 703, 1934 Tenn. LEXIS 20 (1934).

2. Construction.

This section is not limited to those who both manufacture and sell because the word “or” was not used in the caption of the original act in reciting the things regulated. Lindsey v. William Gerst Brewing Co., 168 Tenn. 62, 73 S.W.2d 703, 1934 Tenn. LEXIS 20 (1934).

3. Purchases from Licensed Manufacturers or Importers.

A determination that wholesale distributors are not required to purchase beer from manufacturers or importers who are licensed to sell beer in Tennessee would defeat the legislative intent to closely regulate the beer industry. Beer House Distribs., Inc. v. Huddleston, 854 S.W.2d 881, 1992 Tenn. App. LEXIS 1032 (Tenn. Ct. App. 1992).

57-5-202. Commissioner of revenue — Supervision and collection of tax — Enforcement of law.

  1. The supervision and collection of the tax imposed in § 57-5-201 is under the direction of the commissioner of revenue. The commissioner shall expend so much of four percent (4%) of the amount received thereunder each year as may be necessary to defray the expenses including clerical and mechanical help and transportation arising out of the administration of this chapter.
  2. No employee of the commissioner shall, while so employed, be interested, directly or indirectly, in the vending, storing, distributing and/or manufacturing of such beer and/or any other beverage under the penalty of dismissal from office and of five hundred dollars ($500) fine, to be recovered by indictment or presentment.
  3. The police and penal provisions of this chapter shall be enforced by members of the state highway patrol and all sheriffs, deputy sheriffs and police officers of the state and its political subdivisions. Such officers, along with inspectors, agents, representatives or officers appointed by the commissioner, shall be charged with the enforcement of the revenue provisions of this chapter. Duly authorized representatives of the department, in the discretion of the commissioner, are authorized and empowered to make arrests for violation of the revenue provisions of this chapter while on active duty engaged in enforcing the revenue provisions of this chapter.

Acts 1933, ch. 69, § 3; 1943, ch. 53, § 4; C. Supp. 1950, § 1191.3; impl. am. Acts 1959, ch. 9, § 14; Acts 1969, ch. 160, § 3; 1969, ch. 319, §§ 3, 4; 1970, ch. 456, § 1; 1970, ch. 496, § 1; 1970, ch. 578, § 1; 1970, ch. 588, §§ 1, 2; 1971, ch. 53, §§ 1-3; 1971, ch. 231, §§ 1, 2; 1972, ch. 584, § 1; 1973, ch. 389, § 1; 1974, ch. 631, §§ 1, 2; Private Acts 1976, ch. 242, § 1; Private Acts 1976, ch. 293; Acts 1977, ch. 239, § 4; T.C.A., (orig. ed.), § 57-214; Acts 1982, ch. 881, § 1; 1991, ch. 9, § 7; 1992, ch. 973, § 5; Private Acts 1994, ch. 191, § 4; Acts 1996, ch. 553, § 4; 1996, ch. 693, § 1; 1996, ch. 753, § 4.

Compiler's Notes. Acts 1996, ch. 553, § 4 and Acts 1996, ch. 753, § 4 purported to amend the table of populations in (c)(2); however, (c)(2) was previously deleted by Acts 1996, ch. 693, § 1.

Cross-References. Constables, counties in which office abolished, §8-10-101.

57-5-203. Payment of tax money — Deadline.

The tax imposed in §57-5-201 shall be paid to the department of revenue on or before the twentieth day of the month following the month in which it accrues.

Acts 1933, ch. 69, § 4; 1941, ch. 52, § 1; C. Supp. 1950, § 1191.14; impl. am. Acts 1959, ch. 9, § 14; Acts 1972, ch. 448, § 2; 1979, ch. 202, § 1; T.C.A. (orig. ed.), § 57-215; Acts 1980, ch. 885, § 6; 1988, ch. 526, § 15.

Compiler's Notes. Acts 1988, ch. 526, § 45 provided that the amendment by that act shall apply to all assessments of penalty made on or after January 1, 1989.

57-5-204. Default in payment of state privilege taxes — Cancellation of certificate.

If any such person shall at any time make default in the payment of the state privilege taxes levied under provisions hereof, the commissioner shall send by registered mail, with return receipt requested, written notice and demand for payment of such delinquent tax, showing the amount thereof due and unpaid, to the surety or sureties on the bond, at the address shown thereon or to the last known address, and if the delinquent tax and all interest and penalties legally due thereon shall not be paid within ten (10) days after the mailing of such notice, the commissioner shall cancel the certificate described under §57-5-102 and proceed against the delinquent under §§29-3-112 and29-3-113 and the commissioner is authorized and empowered, and it shall be the commissioner's duty, to issue a distress warrant for the collection of all delinquent state privilege taxes due under the provisions hereof, with interest and penalty in the sum of ten percent (10%).

Acts 1933, ch. 69, § 7; C. Supp. 1950, § 1191.7; impl. am. Acts 1959, ch. 9, § 14; T.C.A. (orig. ed.), § 57-216.

Cross-References. Certified mail in lieu of registered mail, §1-3-111.

57-5-205. Distribution of state privilege tax — Special census by municipality or county.

The state privilege tax collected under §§57-5-20157-5-204 shall be paid into the state treasury and shall be divided as follows:

  1. From the proceeds of the amount so collected, ten and five hundredths percent (10.05%) shall be paid to the several counties equally to be used by them for general purposes, ten and five hundredths percent (10.05%) shall be divided between the existing incorporated municipalities according to population to be used by them for general purposes, and forty-one hundredths percent (0.41%) shall be reserved and transferred to the department of mental health and substance abuse services to assist municipalities and counties in carrying out the Comprehensive Alcohol and Drug Treatment Act of 1973, compiled as title 33, chapter 10; title 39, chapter 17, part 4; §§ 53-11-408 and 57-3-306; and this section. Any municipality or county shall have the right to take not more than four (4) special censuses at its own expense at any time during the interim between the regular decennial federal census. Such right shall include the current decennium. Any such census shall be taken by the federal bureau of the census, or in a manner directed by and satisfactory to the department of economic and community development. The population of the municipality or county shall be revised in accordance with the special census for purposes of distribution of such funds, effective on July 1, following the certification of the census results by the federal bureau of the census, or the department of economic and community development to the commissioner of finance and administration; the aggregate population shall likewise be adjusted in accordance with any such special census, effective July 1, following certification; and
  2. The remainder of the tax collected under this section shall become a part of the general fund of the state.

Acts 1933, ch. 69, § 11; 1937, ch. 88, § 2; 1947, ch. 109, § 2; mod. C. Supp. 1950, § 1191.15; Acts 1957, ch. 368, § 1; impl. am. Acts 1959, ch. 9, § 3; impl. am. Acts 1961, ch. 97, § 3; Acts 1973, ch. 295, § 19; 1974, ch. 516, § 1; impl. am. Acts 1975, ch. 248, § 1; Acts 1978, ch. 497, § 2; T.C.A. (orig. ed.), § 57-217; Acts 1981, ch. 307, § 2; 1996, ch. 675, § 66; 2000, ch. 947, § 6; 2003, ch. 355, § 20; 2005, ch. 500, § 3; 2006, ch. 989, § 8; 2009, ch. 186, § 39; 2010, ch. 1100, § 98; 2011, ch. 350, § 2; 2011, ch. 509, § 5; 2012, ch. 575, § 1.

Compiler's Notes. Acts 2003, ch. 355, § 66 provided that no expenditure of public funds pursuant to the act shall be made in violation of the provisions of Title VI of the Civil Rights Act of 1964, as codified in 42 U.S.C. § 2000d.

Acts 2006, ch. 989, § 17 provided that the act shall apply to funds remitted to the department of revenue on or after August 1, 2006.

Acts 2010, ch. 1100, § 153 provided that the commissioner of mental health and developmental disabilities, the commissioner of mental health, the commissioner of intellectual and developmental disabilities, and the commissioner of finance and administration are authorized to promulgate rules and regulations to effectuate the purposes of the act. All such rules and regulations shall be promulgated in accordance with the provisions of the Uniform Administrative Procedures Act, compiled in title 4, chapter 5.

Cross-References. Special census by counties, §9-16-101.

State funding for litter abatement, §57-5-201.

Textbooks. Tennessee Jurisprudence, 16 Tenn. Juris., Intoxicating Liquors, § 10.

Attorney General Opinions. The state can probably continue to distribute state-shared taxes even if the general assembly does not enact a general appropriations act, OAG 00-083 (5/4/00).

57-5-206. Records — Reports to commissioner of revenue — Rules and regulations.

  1. Every person, firm, corporation, joint-stock company, syndicate or association in this state engaged in the storage, sale, distribution by sale or gift and/or manufacture in this state of such beer and/or other beverage shall keep invoices and all other memoranda fully descriptive thereof, and shall permit the commissioner or the commissioner's authorized agents, representatives or employees to inspect, at any time during the business hours of the day, all such articles, containers, packages, invoices, books, papers and memoranda as may be deemed necessary in the opinion of the commissioner, or the commissioner's authorized agent, representative or employee, in ascertaining whether or not the state privilege tax levied under §§ 57-5-201 — 57-5-203 has been paid or in determining the amount of such tax as may be due.
  2. The original bill of sale or invoice or a digital copy thereof shall be kept by the wholesaler for at least two (2) years and the duplicate bill of sale or invoice shall be retained by the retailer for at least two (2) years, subject to inspection by the department or the county, municipal or metropolitan government involved.
  3. The commissioner shall have the power to require any person engaged in the storage, sale, distribution by sale or gift, and/or manufacture, in this state, of such beer and/or any other such beverages, as described above, to furnish any reports, statements or information, under oath, which may be deemed, in the opinion of the commissioner, necessary for the purpose of enforcing a compliance herewith.
  4. The commissioner is authorized and has the duty to make rules and regulations necessary, in the commissioner's opinion, to effectuate the purposes and carry out the provisions hereof, which rules and regulations shall have the force and effect of law if not in conflict with express statutory provision.

Acts 1933, ch. 69, § 8; C. Supp. 1950, § 1191.8; impl. am. Acts 1959, ch. 9, § 14; Acts 1971, ch. 21, § 1; T.C.A. (orig. ed.), § 57-218; Acts 1986, ch. 525, § 1; 2012, ch. 657, § 10.

Law Reviews.

An Examination of The Tennessee Law of Administrative Procedure (George Street Boone), 1 Vand. L. Rev. 339.

57-5-207. Failure to keep records or make reports — Refusal to permit examination of articles used to measure tax — Penalty.

  1. The failure of any person, firm, corporation, joint-stock company, syndicate or association required to pay the state privilege taxes levied hereby, to preserve the invoices or memoranda required by § 57-5-206, or to permit the inspection and examination of such containers, packages, or articles used as the measure of the tax, and/or invoices, books, papers and memoranda at the request of the commissioner or the commissioner's authorized agent, representative or employee, or the failure of any such person to make or furnish any report which the commissioner is authorized to require when demanded by the commissioner, is a violation hereof.
  2. Any person, firm, corporation, joint-stock company, syndicate or association violating this section is guilty of a Class C misdemeanor.

Acts 1933, ch. 69, § 9; C. Supp. 1950, § 1191.9; impl. am. Acts 1959, ch. 9, § 14; T.C.A. (orig. ed.), § 57-219; Acts 1989, ch. 591, § 113.

Cross-References. Penalty for Class C misdemeanor, §40-35-111.

57-5-208. Tax exemption for armed forces facilities.

  1. The state tax on beer and ale shall not be applicable to beer and ale sold for consumption within the geographical boundaries of a fort, base, camp or post of the armed forces of the United States, post exchanges, ship service stores, commissaries and messes operated by the United States armed forces.
  2. The exemption of the tax herein made shall be effectuated by the department of revenue allowing wholesalers and breweries, duly licensed in Tennessee, credit for taxes paid on beer or ale sold to post exchanges, ship service stores, commissaries and messes operated and controlled by the United States armed forces, and which are instrumentalities of the government of the United States.
  3. Such credit shall be allowed only upon application made therefor to the department by the wholesaler or brewery delivering beer or ale and upon a showing, by copy of the invoice with the signature of the officer in charge of such post exchange, ship service store, commissary or mess certifying that the beer or ale was sold to and delivered to the post exchange, ship service store, commissary or mess by such Tennessee wholesaler or brewery. In addition, the application shall be supported by such other evidence as the commissioner may by regulation require.

Acts 1951, ch. 21, § 1 (Williams, § 1191.21); impl. am. Acts 1959, ch. 9, § 14; T.C.A. (orig. ed.), § 57-220.

Part 3 Prohibited Acts

57-5-301. Sales to minors or intoxicated persons prohibited — Employment of certain offenders prohibited — Hours of sale and consumption — Loitering by minors — Possession by minors unlawful — Signs on vendors' premises.

    1. A permit holder engaging in the business regulated hereunder or any employee thereof shall not make or permit to be made any sales to minors or persons visibly intoxicated. Prior to making a sale of beer for off-premise consumption, the adult consumer must present to the permit holder, or any employee of the permit holder, a valid, government-issued document, such as a driver’s license, or other form of identification deemed acceptable to the permit holder, that includes the photograph and birth date of the adult consumer attempting to make a beer purchase. Persons exempt under state law from the requirement of having a photo identification shall present identification that is acceptable to the permit holder. The permit holder or employee shall make a determination from the information presented whether the purchaser is an adult. In addition to the prohibition of making a sale to a minor, no sale of beer for off-premises consumption shall be made to a person who does not present such a document or other form of identification to the permit holder or any employee of the permit holder; however, it is an exception to any criminal punishment or adverse administrative action, including license suspension or revocation, as provided for a violation of this section if the sale was made to a person who is or reasonably appears to be over fifty (50) years of age and who failed to present an acceptable form of identification. Responsible vendors shall post signs on the vendor’s premises informing customers of the vendor’s policy against selling beer to underage persons. The signs shall be not less than eight and one-half inches by eleven inches (8½" x 11"), and contain the following language: STATE LAW REQUIRES IDENTIFICATION FOR THE SALE OF BEER. Neither the person engaging in such business nor persons employed by that person shall be a person who has been convicted of any violation of the laws against possession, sale, manufacture and transportation of intoxicating liquor or any crime involving moral turpitude within the last ten (10) years.
    2. A violation of subdivision (a)(1) is a Class A misdemeanor.
    1. No alcoholic beverage within the scope hereof shall be sold between twelve o’clock midnight (12:00) and six o'clock a.m. (6:00 a.m.). No such beverage shall be sold between twelve o’clock midnight (12:00) on Saturday and eleven fifty-nine o'clock p.m. (11:59 p.m.) on Sunday. No such beverage shall be consumed, or opened for consumption, on or about any premises licensed hereunder, in either bottle, glass, or other container, after twelve fifteen o'clock a.m. (12:15 a.m.). Any county by resolution of the governing body may extend the hours for the sale of beer; provided, however, that the hours for the sale of beer in “clubs” as defined in § 57-4-102, shall conform to those hours for the sale of liquor by the drink as provided in chapter 4 of this title.
    2. A violation of subdivision (b)(1) is a Class C misdemeanor.
    3. This subsection (b) shall not affect the power of governing bodies of municipal corporations or of Class B counties by ordinance to fix the hours when such beverages may be sold within the incorporated limits of such respective municipalities or within the general services districts of Class B counties outside the limits of any smaller city as defined in § 7-1-101. Municipal corporations may authorize the sale of such beverages in their respective corporate limits on Sundays or at such hours as may be prescribed by ordinance. Class B counties may authorize the sale of such beverages on Sundays in their respective general services districts outside their urban services districts and outside the limits of any smaller city or cities or in their respective urban services districts or in both or at such hours as may be prescribed by ordinance.
    4. The governing body of any county that has adopted liquor by the drink, as provided for in chapter 4 of this title, may fix the hours for the sale of beer within the county (that part of the county outside of incorporated municipalities). This subdivision (b)(4) shall not affect business establishments selling liquor by the drink and malt beverages as authorized by chapter 4 of this title.
      1. In any county in which an incorporated municipality has authorized the sale of liquor by the drink, as provided for in chapter 4 of this title, the hours for the sale of beer as defined in § 57-6-102, in that part of the county outside of incorporated municipalities and in all of its municipalities which have authorized the sale of liquor by the drink, shall be the same as the hours authorized by the rules and regulations promulgated by the alcoholic beverage commission for establishments selling liquor by the drink; provided, however, that the county legislative body of any such county and the governing body of each municipality within the county which has authorized the sale of liquor by the drink shall have the authority to extend the hours for the sale of beer as defined in § 57-6-102, within the territorial jurisdiction of each governing body. This subdivision (b)(5)(A) shall not apply to counties and municipalities that have legalized the sale of liquor by the drink by a county-wide referendum.
      2. In any jurisdiction that has elected Tennessee River resort district status pursuant to § 67-6-103(a)(3)(F) and is considered a Tennessee River resort district for purposes of chapter 4, part 1 of this title, the hours for the sale of beer within the boundaries of any such resort district shall not be less than the hours authorized for establishments selling liquor or wine for on-premises consumption.
  1. It is unlawful for the management of any place where any beverage licensed hereunder is sold to allow any minor to loiter about such place of business, and the burden of ascertaining the age of minor customers shall be upon the owner or operator of such place of business.
      1. It is unlawful and punishable as provided in § 57-5-303, for any minor to purchase or attempt to purchase any such beverage.
        1. In addition to any criminal penalty established in this section, a court in which a person younger than twenty-one (21) years of age but eighteen (18) years of age or older is convicted of the purchase or attempt to purchase or possession of beer in violation of this section shall prepare and send to the department of safety, driver control division, within five (5) working days of the conviction an order of denial of driving privileges for the offender.
        2. The court and the department of safety shall follow the same procedures and utilize the same sanctions and costs for an offender younger than twenty-one (21) years of age but eighteen (18) years of age or older as provided in title 55, chapter 10, part 7, for offenders younger than eighteen (18) years of age but thirteen (13) years of age or older.
    1. Any person who purchases any such beverage for or on behalf of a person under twenty-one (21) years of age commits a Class A misdemeanor and, in addition to the punishment authorized by § 40-35-111, shall be punished pursuant to § 39-15-404.
    2. Any person under twenty-one (21) years of age who knowingly makes a false statement or exhibits false identification to the effect that the person is twenty-one (21) years of age or older to any person engaged in the sale of alcoholic beverages licensed hereunder for the purpose of purchasing or obtaining the same is guilty of a misdemeanor. In addition to any criminal penalty established by this subdivision (d)(3), a court in which a person younger than twenty-one (21) years of age but eighteen (18) years of age or older is convicted under this subdivision (d)(3) of a second or subsequent offense shall prepare and send to the department of safety, driver control division, within five (5) working days of the conviction, an order of denial of driving privileges for the offender for a period not to exceed one (1) year. The offender may apply to the court for a restricted driver license. The judge shall order the issuance of a restricted motor vehicle operator's license, in accordance with § 55-50-502. The court and the department shall follow the same procedures and utilize the same costs for a person younger than twenty-one (21) years of age but eighteen (18) years of age or older as provided in title 55, chapter 10, part 7, for offenders younger than eighteen (18) years of age but thirteen (13) years of age or older.
      1. If the person violating this subdivision (d)(3) is less than eighteen (18) years of age, the person shall be punished by a fine of not less than fifty ($50.00) nor more than two hundred fifty dollars ($250) and not less than twenty (20) hours of community service work, which fine or penalty shall not be suspended or waived. The fine imposed by this subdivision (d)(3)(A) shall apply regardless of whether the violator cooperates with law enforcement officers by telling them the place the alcohol was purchased or obtained or from whom it was purchased or obtained.
      2. If the person violating this subdivision (d)(3) is eighteen (18) years of age or older but less than twenty-one (21) years of age, the person shall be punished by a fine of not less than fifty dollars ($50.00) nor more than five hundred dollars ($500) or by imprisonment in the local jail or workhouse for not less than five (5) days nor more than thirty (30) days. The penalties imposed by this subdivision (d)(3)(B) shall apply regardless of whether the violator cooperates with law enforcement officers by telling them the place the alcohol was purchased or obtained or from whom it was purchased or obtained.
    1. It is unlawful for any person under twenty-one (21) years of age to have in the person's possession beer for any purpose, and it is unlawful for any such minor to transport beer for any purpose except the same be in the course of employment.
    2. A violation of subdivision (e)(1) is a Class A misdemeanor.
    3. Any person under twenty-one (21) years of age found to have violated subdivision (e)(1) shall, regardless of the final disposition of such violation, have the right to have the records, as defined in § 40-32-101, of such violation destroyed after the passage of six (6) months from the date of the violation. Such destruction shall occur upon motion of the person to the court which heard the violation and shall be without cost to such person.
  2. Vendors shall post signs on the vendor's premises informing customers of the vendor's policy against selling beer to underage persons. The signs shall be not less than eight and one-half inches by five and one-half inches (8½" x 5½"), and shall contain the following language: IF YOU AREN'T 21 AND ARE IN POSSESSION OF BEER, YOU COULD LOSE YOUR DRIVER LICENSE.

Acts 1933, ch. 69, § 9a; 1935, ch. 170, § 3; 1943, ch. 53, §§ 2, 5; C. Supp. 1950, § 1191.10; Acts 1961, ch. 170, § 1; 1963, ch. 222, § 1; 1965, ch. 321, § 5; 1970, ch. 353, § 1; 1972, ch. 555, § 1; 1978, ch. 537, § 1; impl. am. Acts 1978, ch. 934, §§ 7, 36; impl. am. Acts 1979, ch. 413, §§ 3, 4; T.C.A. (orig. ed.), § 57-221; Acts 1982, ch. 877, § 4; 1984, ch. 1006, §§ 4, 10, 18; 1985, ch. 321, §§ 2, 3; 1985, ch. 375, § 5; 1986, ch. 758, § 1; 1986, ch. 788, § 3; 1989, ch. 591, §§ 111, 113; 1991, ch. 473, § 4; 1996, ch. 641, § 5; 1997, ch. 423, §§ 1-3; 1998, ch. 780, § 1; 2006, ch. 864, § 12; 2006, ch. 900, § 2; 2006, ch. 986, §§ 3, 4, 6; 2008, ch. 877, §§ 1, 3; 2009, ch. 208, § 2; 2011, ch. 27, §§ 2, 3.

Code Commission Notes.

Portions of this section have been rewritten by the executive secretary to the Tennessee code commission to implement Acts 1989, ch. 591, § 111, effective November 1, 1989, which requested that the executive secretary amend this section by deleting the penalty provision and inserting language to indicate violation of the section is a Class A misdemeanor.

Compiler's Notes. The misdemeanor penalty provisions in subsections (c) and (d) may have been affected by the Criminal Sentencing Reform Act of 1989. See §§39-11-114,40-35-110,40-35-111.

For similar provisions relative to purchases and possession by minors, see §57-4-203 and accompanying notes.

Acts 2006, ch. 864, § 12, provided that the amendment by the act, which added the second through sixth sentences of subdivision (a)(1), shall sunset on July 1, 2008. Acts 2008, ch 877 § 1 provided that Acts 2006, ch. 864, § 12 is amended by deleting the last sentence in § 12 in its entirety which reads: “The provisions of this section will sunset July 1, 2008.”

Cross-References. Alcohol-related injuries, title 57, ch. 10.

Eighteen-year-olds, legal responsibility, alcoholic beverage restrictions on persons under 21, §1-3-113.

False representations by minors, §§57-3-412,57-4-203.

Juvenile alcohol abuse, title 33, ch. 10, part 3.

“Minor” defined, §1-3-105.

Penalties for Class A and Class C misdemeanors, §40-35-111.

Tennessee Responsible Vendor Act of 2006, title 57, ch. 5, part 6.

Textbooks. Tennessee Jurisprudence, 16 Tenn. Juris., Intoxicating Liquors, §§ 4, 5, 9, 12, 21.

Law Reviews.

One Too Many: Sellers, Servers Must Know “How Much Is Too Much” to Avoid Alcohol Related Injuries (Mike Faulk), 43 Tenn. B.J. 12 (2007).

Selected Tennessee Legislation of 1986, 54 Tenn. L. Rev. 457 (1987).

Attorney General Opinions. Destruction of records—juvenile court—alcohol violations by a minor, OAG 92-68 (12/28/92).

Purchasing beverages of 5% alcohol or less for person under 21, OAG 94-051 (4/6/94).

No driver's license suspension for underage consumers of alcohol, OAG 94-137 (11/21/94).

Conviction of driving under the influence not bar to employment, OAG 95-037 (4/18/95).

Applicability of local beer permit ordinance to liquor-by-the-drink license holders, OAG 99-098 (4/30/99).

Constitutionality of subdivision (b)(5), relating to hours for sale of beer in counties containing municipalities that have adopted liquor-by-the-drink, OAG 99-187 (9/22/99).

In a county that has not approved liquor by the drink by means of a county-wide referendum, but in which several municipalities have approved liquor by the drink, the hours for the sale of beer in areas of the county outside of incorporated municipalities and within those municipalities that have adopted liquor by the drink will be those set for the sale of liquor by the drink by the alcoholic beverage commission; thus, beer sales in these areas of the county may begin as early as 10:00 a.m. on Sundays, and this starting time for beer sales is applicable to sales by stores for off-premises consumption, as well as sales for consumption on the premises, OAG 02-23 (2/27/02).

In a county that has not approved liquor by the drink by means of a county-wide referendum, but in which several municipalities have approved liquor by the drink, and in which one incorporated municipality that has approved liquor by the drink decides by resolution to “opt out” of the expanded time for Sunday liquor-by-the-drink sales in order to return to the previous starting time of 12:00 noon, the hours for the sale of beer in areas of the county outside of incorporated municipalities and within those other municipalities that have adopted liquor by the drink will be those set for the sale of liquor by the drink by the alcoholic beverage commission, and, therefore, beer sales in these areas of the county may begin as early as 10:00 a.m. on Sundays, OAG 02-23 (2/27/02).

In counties that have not approved liquor by the drink by means of a county-wide referendum, but contain at least one municipality that has approved liquor by the drink by municipal referendum, the hours for the sale of beer in areas of the county outside of incorporated municipalities, and within those municipalities that allow liquor by the drink, will be those set by the alcoholic beverage commission for the sale of liquor by the drink; however, the governing body of a county or incorporated municipality may extend the hours for beer sales beyond these times in their respective jurisdictions, OAG 02-033 (3/15/02).

Violations by minors, OAG 07-104 (7/12/07).

Revocation and suspension of beer permits, OAG 07-104 (7/12/07).

Hours for the sale of beer in a municipality located within a Tennessee River resort district.  OAG 10-92, 2010 Tenn. AG LEXIS 98 (8/17/10).

NOTES TO DECISIONS

1. Construction.

Although this section is somewhat ambiguous it was the intent of the legislature that the acts enumerated herein be subject to fine and imprisonment. Richmond v. State, 171 Tenn. 1, 100 S.W.2d 1, 1936 Tenn. LEXIS 52 (1936).

There is nothing in this chapter to constitute notice that a violation of the liquor laws of the state would operate as a revocation of a licensee's right to sell beer. Richmond v. State, 171 Tenn. 1, 100 S.W.2d 1, 1936 Tenn. LEXIS 52 (1936).

2. Hours of Sale.

The 1943 amendment made an exception in favor of municipal corporations, conferring power upon them to vary the statutory hours of sale, and this exception precludes any such exception in favor of counties and county beer commissions. Perry v. Sevier County Beer Com., 181 Tenn. 696, 184 S.W.2d 32, 1944 Tenn. LEXIS 293 (1944).

The legislature having made the sale of beer legal within certain hours, the counties and the county beer commissions are not authorized to vary or further restrict these hours. Perry v. Sevier County Beer Com., 181 Tenn. 696, 184 S.W.2d 32, 1944 Tenn. LEXIS 293 (1944).

Where city ordinance regulated hours of sale of beer, but was silent with respect to hours of on premises consumption, provision of T.C.A. §57-5-301 prohibiting beer licensees from allowing consumption of beer on premises after specified time applied to any licensee located within city. Claiborne Country Club v. City of Tazewell, 872 S.W.2d 685, 1993 Tenn. App. LEXIS 601 (Tenn. Ct. App. 1993).

3. Minors Loitering About Premises.

Defendant was guilty of allowing minors to loiter around beer place where evidence showed that minors drank beer, danced, and were observed in beer place. Hopper v. State, 194 Tenn. 600, 253 S.W.2d 765, 1952 Tenn. LEXIS 427 (1952).

It was duty of court to instruct, when requested, on the legal definition of the term “loiter.” McCoy v. State, 3 Tenn. Crim. App. 709, 466 S.W.2d 540, 1971 Tenn. Crim. App. LEXIS 388 (Tenn. Crim. App. 1971).

4. Sufficiency of Indictment or Presentment.

Where presentment charged that defendant having been convicted within the last 10 years of violation of the law against possession and transportation of intoxicating liquors in Tennessee did unlawfully sell beer, but where the presentment did not state any facts or particulars that would constitute an illegal sale of beer, such presentment did not charge an indictable offense. Richmond v. State, 171 Tenn. 1, 100 S.W.2d 1, 1936 Tenn. LEXIS 52 (1936).

5. Sunday Sales.

Provision of this section prohibiting Sunday sales was not for purpose of protecting travelers on highways from drunken driving on Sunday and person who made such sales was not thereby liable for injuries resulting from operation of motor vehicle by person to whom he made such sales. Mitchell v. Ketner, 54 Tenn. App. 656, 393 S.W.2d 755, 1964 Tenn. App. LEXIS 165 (Tenn. Ct. App. 1964), superseded by statute as stated in, Worley v. Weigel's, — S.W.2d —, 1994 Tenn. App. LEXIS 726 (Tenn. Ct. App. Dec. 14, 1994).

City ordinance prohibiting the sale of beer on Sunday did not violate the constitutional prohibition against religious preferences or due process. Martin v. Beer Bd., 908 S.W.2d 941, 1995 Tenn. App. LEXIS 271 (Tenn. Ct. App. 1995).

6. Public Policy.

The public policy of this state is to prevent minors from purchasing, possessing, or imbibing alcoholic beverages. Brookins v. Round Table, Inc., 624 S.W.2d 547, 1981 Tenn. LEXIS 503 (Tenn. 1981), superseded by statute as stated in, Biscan v. Brown, — S.W.3d —, 2003 Tenn. App. LEXIS 875 (Tenn. Ct. App. Dec. 15, 2003).

7. Sales to Minors.

A cause of action exists against a vendor who sells alcoholic beverages to a minor, where harm results therefrom. Brookins v. Round Table, Inc., 624 S.W.2d 547, 1981 Tenn. LEXIS 503 (Tenn. 1981), superseded by statute as stated in, Biscan v. Brown, — S.W.3d —, 2003 Tenn. App. LEXIS 875 (Tenn. Ct. App. Dec. 15, 2003).

It is no defense that a minor purchasing beer violates the law and is guilty of a misdemeanor. Medley v. Maryville City Beer Bd., 726 S.W.2d 891, 1987 Tenn. LEXIS 892 (Tenn. 1987).

The doctrine of entrapment has been held not to be established when the police did no more than to employ a minor as a decoy and to place him under surveillance while he requested the sale of an intoxicant. Medley v. Maryville City Beer Bd., 726 S.W.2d 891, 1987 Tenn. LEXIS 892 (Tenn. 1987).

8. Civil Actions.

A person who has the capacity and judgment to act responsibly in his own behalf cannot recover damages where he actively contributes to the intoxication of another and the intoxication is the proximate cause of the injury that is the subject of the legal action. Brookins v. Round Table, Inc., 624 S.W.2d 547, 1981 Tenn. LEXIS 503 (Tenn. 1981), superseded by statute as stated in, Biscan v. Brown, — S.W.3d —, 2003 Tenn. App. LEXIS 875 (Tenn. Ct. App. Dec. 15, 2003).

Sections 57-10-101 and 57-10-102 governing the liability of sellers of alcohol, rather than the duties imposed by criminal statutes, determine the civil liability of the seller. Worley v. Weigel's, Inc., 919 S.W.2d 589, 1996 Tenn. LEXIS 188 (Tenn. 1996), rehearing denied, — S.W.2d —, 1996 Tenn. LEXIS 255 (Tenn. 1996).

57-5-302. [Reserved.]

  1. Any violation of this chapter or rule or regulation of the commissioner of revenue or the violations of any rule or regulation of a county legislative body, metropolitan council or city legislative body relative to the conducting of the beer or like beverage business as defined in § 57-5-101 is a Class C misdemeanor where the penalty is not otherwise fixed.
  2. A violation of this section involving either unlawful possession or illegal transportation, or both, of over one hundred (100) cases of twenty-four (24) twelve ounce (12 oz.) cans of beer or other light alcoholic beverage, or the equivalent thereof with respect to quantity or the kinds of containers, is a Class E felony.
  3. Upon the second conviction of any person engaging in a business regulated under this chapter of making, or permitting to be made, any sale of alcoholic beverages, beer or wine to a person under twenty-one (21) years of age in violation of this chapter, such person is guilty of a Class E felony. In addition, upon the second such conviction, the permit or license of such person shall be automatically and permanently revoked regardless of any other punishment actually imposed.
  4. Each violation of this chapter shall constitute a separate and distinct offense.

Acts 1933, ch. 69, § 13; C. Supp. 1950, § 1191.16 (Williams, § 1191.17); Acts 1965, ch. 321, § 6; 1969, ch. 299, § 2; 1972, ch. 448, § 3; 1979, ch. 256, § 2; impl. am. Acts 1979, ch. 413, §§ 1, 2; T.C.A. (orig. ed.), § 57-223; Acts 1984, ch. 1006, § 5; 1989, ch. 591, §§ 64, 65.

Cross-References. Age of majority for purposes of purchasing, consuming, transporting alcoholic beverages, §§1-3-105,1-3-113.

Eighteen-year-olds, legal responsibility, alcoholic beverage restrictions on persons under 21, §1-3-113.

Juvenile alcohol abuse, title 33, ch. 10, part 3.

Penalty for Class C misdemeanor, §40-35-111.

Penalty for Class E felony, §40-35-111.

Purchase of beverages from unauthorized seller, penalty, §57-5-406.

Transportation of beer and light alcoholic beverages, unlawful acts, §§57-5-406,57-5-414,57-5-416.

Attorney General Opinions. Purchasing beverages of 5% alcohol or less for person under 21, OAG 94-051 (4/6/94).

A vendor who is caught selling beer to a minor is subject to criminal penalties imposed by the local criminal court ranging from a Class A misdemeanor to a Class E felony and is also subject to the suspension or revocation of the permit imposed by the local beer board, OAG 01-062 (4/20/01).

NOTES TO DECISIONS

1. Civil Actions.

A cause of action exists against a vendor who sells alcoholic beverages to a minor, where harm results therefrom. Brookins v. Round Table, Inc., 624 S.W.2d 547, 1981 Tenn. LEXIS 503 (Tenn. 1981), superseded by statute as stated in, Biscan v. Brown, — S.W.3d —, 2003 Tenn. App. LEXIS 875 (Tenn. Ct. App. Dec. 15, 2003).

A person, who has the capacity and judgment to act responsibly in his own behalf cannot recover damages where he actively contributes to the intoxication of another and the intoxication is the proximate cause of the injury that is the subject of the legal action. Brookins v. Round Table, Inc., 624 S.W.2d 547, 1981 Tenn. LEXIS 503 (Tenn. 1981), superseded by statute as stated in, Biscan v. Brown, — S.W.3d —, 2003 Tenn. App. LEXIS 875 (Tenn. Ct. App. Dec. 15, 2003).

57-5-304. Outdoor advertisement at retail beer establishments.

  1. No outdoor sign, advertisement or display that advertises beer may be erected or maintained on the property on which a retail beer establishment is located other than one (1) sign, advertisement or display which makes reference to the fact that the establishment sells beer but does not use brand names, pictures, numbers, prices or diagrams relating to beer.
  2. This section shall not apply to any sign, advertisement or display erected or maintained by or at the request of a temporary beer permittee or to any sports arena, stadium or entertainment complex.

Acts 1988, ch. 487, § 1; 1996, ch. 641, § 6.

Part 4 Transportation

57-5-401. Transportation of beer and light alcoholic beverages into state — Documents required — Carrier's tax liability.

  1. Any person engaged in transporting any beer and/or other such beverages from any point outside of this state to any point within this state shall possess during the entire time engaged in transporting such beverages in this state an invoice, bill of sale, or bill of lading, showing the true name and address of the consignor, the true name and address of the licensed brewery, wholesaler or distributor to whom such beverages are to be delivered, and the quantity of such beverages, except a common carrier maintaining a permanent office within this state where complete records of all beer and/or other such beverages transported from without this state are kept and open to inspection by the commissioner or the commissioner's duly authorized agent at all reasonable times.
  2. When any common carrier transporting beer as defined in § 57-5-101(b) to a point within this state or any insurance company insuring such products comes into possession of such products by virtue of the same being damaged or otherwise unaccepted by the consignee of such product, such common carrier or insurance company shall become liable for the tax imposed under this chapter, unless proof deemed satisfactory to the commissioner is furnished to the commissioner by such carrier or insurance company showing that such products have been destroyed or shipped to a point without this state and, therefore, have not been sold or consumed in this state. The imposition of liability for the tax under the circumstances as hereinabove stated shall not be construed as authorizing the sale of such products in this state by either common carriers or insurance companies unless otherwise licensed to do so.

Acts 1969, ch. 299, § 3; 1973, ch. 6, § 2; T.C.A., § 57-224; Acts 1990, ch. 617, §§ 2, 3; 2014, ch. 861, § 11.

Cross-References. Beer wholesaler-supplier relations, title 57, ch. 5, part 5.

Interstate shipments by roadway or other means, §57-5-408.

57-5-402. Unauthorized change of consignee or place of delivery prohibited.

  1. It is unlawful for any person to present or tender for transportation to any carrier, or to any officer, agent, employee, or other person acting or assuming to act for such carrier, any beer and/or other such beverages for delivery to any person other than the consignee designated by such person offering the same for shipment, or for the purpose of directly or indirectly effecting a delivery thereof to any person not permitted to receive the same as consignee thereof, under this part, or of any rule or regulation of the commissioner, or to any person not the actual bona fide consignee thereof.
  2. It is also unlawful for any person through any such carrier to deliver any such beverages to any person, or at any point or place other than the person and/or destination designated in the bill of lading or transportation contract therefor, or to accept for transportation and/or delivery any shipment of such beverages knowing that such shipment is intended for any person not permitted to receive the same under this part or any rule or regulation of the commissioner.

Acts 1969, ch. 299, § 3; T.C.A., § 57-225.

Cross-References. Penalty for violating chapter, §57-5-303.

57-5-403. [Reserved.]

  1. It is unlawful for any person to transport from any point within this state to another point within this state any beer and/or other such beverages on which the tax imposed in § 57-5-201 has not been paid, except for immediate delivery to a licensed brewery, wholesaler or distributor in this state.
  2. Any person engaged in transporting any beer and/or other such beverages on which the tax imposed in § 57-5-201 has not been paid from any point within this state to another point within this state shall possess during the entire time engaged in transporting such beverages an invoice, bill of sale or bill of lading showing the true name and address of the consignor, the true name and address of the licensed brewery, wholesaler or distributor to whom such beverages are to be delivered and the quantity of such beverages by character and contents of the containers.
  3. If such person fails to produce an invoice or bill of sale or recorded evidence, or if when produced it fails to comply and accurately disclose such information, the same shall be prima facie evidence of the violation of this chapter.

Acts 1969, ch. 299, § 3; T.C.A., § 57-227.

Cross-References. Penalty for violating chapter, §57-5-303.

57-5-405. Documents required by other than common carrier, brewery, wholesaler or distributor making deliveries to customer.

  1. In order to assure that the tax provided herein has been paid, every person who shall possess or transport any such beverages within this state in excess of five gallons (5 gals.) (other than a common carrier or a licensed brewery, wholesaler or distributor engaged in making regular deliveries of beer and/or other such beverages to their customers) shall possess, during the entire time the person is in possession of or is engaged in transporting such beverages within this state, an invoice, bill of sale or bill of lading showing the date of purchase or shipment, the true name and exact address of the seller or consignor and the true name and exact address of the purchaser or consignee. The burden of proof shall be upon the person possessing or transporting any such beverages to establish to the satisfaction of the collection officers that the invoice, bill of sale or bill of lading possessed by the person and offered as evidence that the tax thereon has been paid does, in fact, relate to the identical beverages then possessed or being transported.
  2. Any property confiscated as contraband solely for failure to have the documents required by this section may be returned upon order of the commissioner, without the necessity of a hearing, upon a showing satisfactory to the department of revenue that taxes imposed by the state of Tennessee upon such items have been paid.

Acts 1969, ch. 299, § 3; 1972, ch. 448, § 4; 1973, ch. 84, § 1; T.C.A., § 57-228.

57-5-406. No purchases authorized from unlicensed seller — Defenses — Shipping, receiving or accepting packages with false or misleading statements unlawful.

  1. No person shall purchase or agree to purchase any beer and/or other such beverages from any person within this state who does not at the time of such purchase hold a license authorizing the seller to sell or agree to sell such beverages to such purchaser. It shall be a matter of defense only that such purchaser did not in good faith know that the seller did not hold a license authorizing the seller to sell or agree to sell beer to the purchaser, and did not have reasonable ground to believe that the seller did not hold such license.
  2. No person shall solicit or receive any order for any such beverages in violation of this part, or give any information of how the same may be obtained in violation of this part.
  3. It is unlawful for any consignee to accept or receive any package containing any beer upon which appears any statement, label, address, superscription, shipping directions, legend or design known to the consignee to be false or misleading, or for any carrier or other person to consign, ship, transport, or deliver any such package, knowing any such statement, label, address, superscription, shipping directions, legend or design to be false or misleading.
  4. It is unlawful for any person to make a false statement for the purpose of obtaining any such beverages to any railroad, express or transportation company or any person engaged in the business of transporting goods, wares, and merchandise for the purpose of obtaining the shipment, transportation or delivery of any beer and/or other such beverages.

Acts 1969, ch. 299, § 3; T.C.A., § 57-229.

Cross-References. Penalty for violating chapter, §57-5-303.

57-5-407. Interstate shipments through Tennessee excepted from part.

This part shall not be construed as being applicable to interstate shipments through this state where such shipments are accompanied and supported by proper invoices or bills of lading containing such information as the commissioner may require.

Acts 1969, ch. 299, § 3; T.C.A., § 57-230.

NOTES TO DECISIONS

1. In General.

T.C.A. §57-5-407 protects beer shipments which are legitimately in interstate commerce. Beer House Distribs., Inc. v. Huddleston, 854 S.W.2d 881, 1992 Tenn. App. LEXIS 1032 (Tenn. Ct. App. 1992).

2. Purpose.

The purpose of T.C.A. §57-5-407 is to prevent the unlawful diversion of liquor from interstate commerce into the territory of the State of Tennessee. Beer House Distribs., Inc. v. Huddleston, 854 S.W.2d 881, 1992 Tenn. App. LEXIS 1032 (Tenn. Ct. App. 1992).

57-5-408. Documents required for interstate shipment — Display and inspection.

  1. It is unlawful for any person to transport into this state upon any public roadway or by any means whatever within this state any beer and/or other such beverages from any other state, nation or other territory unless the person accompanying and in charge of such shipment shall have present and available for exhibition such bills of lading, evidence of ownership and/or shipment as the commissioner may by rule or regulation require.
  2. No such person or driver of any vehicle, vessel, or craft shall refuse to exhibit or refuse to permit to be read and/or examined any such bill of lading, evidence of ownership and/or shipment, or refuse to permit examination of the cargo or vehicular contents by an agent or employee of the commissioner or any police officer, highway patrol officer, sheriff, deputy sheriff or duly authorized officer of a municipal corporation within this state or governmental division thereof. Each, any and all of such officers are entitled to demand, examine and/or read the same, and a refusal to produce the documents referred to in this section or voluntarily permit examination of cargo or vehicular contents is a violation of this part.

Acts 1969, ch. 299, § 3; T.C.A., § 57-231.

Cross-References. Penalty for violating chapter, §57-5-303.

57-5-409. Contraband — What constitutes — Confiscation.

  1. Any beer as defined in § 57-5-101(b) sold or offered for sale by, or in possession of, a retailer purchased from any person, firm or corporation, except a Tennessee wholesaler or distributor licensed in this state, is declared to be contraband and shall be subject to confiscation by the commissioner or any duly authorized representative, highway patrol officer, sheriff or other peace officer.
  2. Any beer or other beverages described in § 57-5-101 imported into this state, in transit within this state, or in possession of a person or firm within this state not in accordance with any of the requirements of §§ 57-5-104 (except permit requirements on wholesalers in counties or cities in which they do not have an established location or place of business), 57-5-201, 57-5-206, 57-5-207, 57-5-401, 57-5-402, 57-5-404 — 57-5-406, 57-5-408 or 57-5-414 and the rules and regulations promulgated under them are declared to be contraband, and it, along with any vehicle in which it is being transported which is not a common carrier, may be seized, either with or without a warrant, by the commissioner or any duly authorized representative, highway patrolman, sheriff, or other peace officer. Any beer or other beverages or vehicles so seized shall be delivered promptly to the department for disposition.
  3. Any beer so seized may, in the discretion of the commissioner, be deposited with a duly licensed Tennessee wholesaler or distributor, located nearest to the site of the seizure, engaged in handling the particular brand of beer involved. Such deposit shall be evidenced by a receipt issued to the commissioner by such wholesaler or distributor, stating the quantity and brand name of such beer so deposited. The receipt may subsequently be exchanged with the wholesaler or distributor issuing it for salable beer of the same quantity and brand name by any person or persons who may be entitled thereto or to the proceeds of the sale thereof in accordance with this chapter. Such receipts shall be admissible as evidence in any administrative hearing or any civil or criminal court hearing or trial.
  4. If, incidental to a confiscation of contraband as defined herein, there is discovered any intoxicating liquor deemed to be held or transported illegally within the purview of § 57-3-411, § 57-9-201 or § 57-9-202, the confiscating officer is hereby empowered and required to seize such liquor, notwithstanding the fact that such officer may not otherwise be empowered to take such action under such section. Any intoxicating liquor seized pursuant hereto shall be delivered promptly, as provided by § 57-3-411, § 57-9-201 or § 57-9-202, whichever is appropriate, to the alcoholic beverage commission for sale or disposition as contraband in accordance with chapters 2-4, or 6 of this title, whichever is appropriate.

Acts 1969, ch. 299, § 3; 1970, ch. 388, § 1; 1973, ch. 68, § 3; 1974, ch. 478, § 3; T.C.A., § 57-232; Acts 2014, ch. 861, § 12.

Textbooks. Tennessee Jurisprudence, 16 Tenn. Juris., Intoxicating Liquors, §§ 3, 20.

NOTES TO DECISIONS

1. Miranda Rules.

The capture of beer and its confiscation as contraband under this section does not involve the constitutional rights protected by Miranda  rules. Stroupe v. Tidwell, 510 S.W.2d 77, 1974 Tenn. LEXIS 502 (Tenn. 1974).

2. Regulations.

Regulation of department of revenue requiring that interstate shipments of beer and alcoholic beverages of alcoholic content of not more than five percent by weight be accompanied by a bill of lading and that the consignee be licensed either in Tennessee or in the state of destination is a reasonable regulation of transportation of intoxicating liquors across state boundaries. Stroupe v. Tidwell, 510 S.W.2d 77, 1974 Tenn. LEXIS 502 (Tenn. 1974).

3. Search and Seizure.

Where the thing seized is contraband, the right to have it returned is not governed by the law of search and seizure, but by the law of contraband. Stroupe v. Tidwell, 510 S.W.2d 77, 1974 Tenn. LEXIS 502 (Tenn. 1974).

4. Beer Purchaser from Unlicensed Seller.

Section57-5-201(c) requires wholesale distributors to purchase beer from licensed manufacturers, licensed importers, or licensed wholesalers; accordingly, any beer purchased from a manufacturer who was not authorized to sell beer in Tennessee would constitute contraband under T.C.A. §57-5-409, as well as the vehicle in which it was being transported. Beer House Distribs., Inc. v. Huddleston, 854 S.W.2d 881, 1992 Tenn. App. LEXIS 1032 (Tenn. Ct. App. 1992).

5. Contraband Found.

Truck and beer were contraband. Beer House Distribs., Inc. v. Huddleston, 854 S.W.2d 881, 1992 Tenn. App. LEXIS 1032 (Tenn. Ct. App. 1992).

57-5-410. Notification of seizure — Claims.

  1. Upon confiscation, or as soon thereafter as practicable, written notice shall be given by the department of revenue to the person from whom the confiscation was made and to all others with a legal interest in the property confiscated who are either made known to the department or who, by reasonable examination of public records of titles and liens, should have been discovered. Such written notice shall state: a description of the property confiscated, the reason for confiscation, the method for seeking recovery, the time limit for seeking recovery, and the result of failure to seek or obtain recovery by the designated method. Such notice may be by personal delivery or by mail either of which may be made to the last known address of the interested party.
  2. Any person claiming any property so seized as contraband goods may, within ten (10) days of such notice, and after executing a bond for costs with one (1) or more good and solvent sureties in the sum of two hundred fifty dollars ($250) made payable to the state of Tennessee, or upon executing a pauper's oath as provided by law, file with the commissioner at Nashville a claim in writing requesting a hearing and stating the person's interest in the property seized. The commissioner shall set a date for hearing within ten (10) days from the date the claim is posted or received.
  3. In any hearing convened upon proper petition of an interested party, the initial burden shall be upon the state to show by a preponderance of the evidence that the property in question was of such nature or was used in such manner as to be declared as contraband. Upon meeting this burden, the property shall be forfeited as provided by law unless the claimant shall prove that the claimant is nevertheless qualified under this chapter, or otherwise, to recover the property in question.
    1. Whenever in any proceeding under this section a claim is filed for any vehicle, aircraft or boat seized, as hereinabove provided, the commissioner shall not allow the claim unless and until the claimant proves that:
      1. The claimant has an interest in such vehicle, aircraft or boat, as owner or otherwise, which was acquired in good faith;
      2. The claimant had at no time any knowledge or reason to believe that it was being or would be used in the violation of laws of the United States or of this state relating to beer as defined in § 57-5-101(b); and
      3. If it appears that the interest asserted by the claimant arises out of or is in any way subject to any contract or agreement under which any person having a record or reputation for violating laws of the United States or any state relating to beer as defined in § 57-5-101(b) has a right with respect to such vehicle, aircraft or boat, that before such claimant acquired the interest, or such other person acquired the right under such contract or agreement, whichever occurred later, the claimant, claimant's officer or agent, made inquiry and was informed, in answer to the inquiry at the headquarters of the sheriff, chief of police, principal federal internal revenue officer engaged in the enforcement of the beer laws, or other principal local or federal law enforcement officer of the locality in which such other person acquired the right under such contract or agreement, of the locality in which such other person then resided, and of each locality in which the claimant has made any other inquiry as to the character or financial standing of such other person, that such other person had no such record or reputation.
    2. Provided, however, that in the case of a first offense of violating this chapter, and after hearing provided for herein, subdivision (d)(1) may, in the discretion of the commissioner, be waived and claim of owner or lienholder may be honored.
  4. The commissioner may designate a hearing officer from the department to conduct the hearings provided for in this section, who shall make findings of fact, conclusions of law, and proposed orders based thereon. If the commissioner concurs, the commissioner shall issue the order; or the commissioner may, upon review of the record, make such findings, conclusions, and issue such orders as, in the commissioner's discretion, the record justifies.
  5. Pending any proceeding to recover any beer as defined in § 57-5-101(b) and/or any vehicle seized as contraband under this chapter, or pending any appeal of the action taken by the commissioner as a result of any such proceeding, the commissioner may order delivery thereof to any claimant who shall establish the right to immediate possession thereof, and who shall execute, with one (1) or more sureties approved by the commissioner, and deliver to the commissioner, a bond in favor of the state of Tennessee for the payment of a sum double the appraised value thereof as of the time of the seizure. The condition of the bond shall be that the obligors shall pay to the state, through the department, the full value of the goods or property when seized, unless upon a final determination by the commissioner or the courts the property shall be awarded to the claimant. The full value of the goods or property seized shall be determined by the commissioner and such determination shall be presumed to be correct in the absence of any proof to the contrary being submitted by the claimant.

Acts 1969, ch. 299, § 3; 1970, ch. 578, § 2; 1971, ch. 213, § 1; 1973, ch. 84, § 2; T.C.A., § 57-233; Acts 2014, ch. 861, §§ 13-15.

Law Reviews.

The Tennessee Department of Revenue and the Uniform Administrative Procedures Act (Mike Norton), 6 Mem. St. U.L. Rev. 303.

57-5-411. Disposition of seized property — Application of proceeds — Taxes paid before delivery of property.

  1. In the event the ruling of the commissioner is favorable to the claimant, the commissioner shall deliver to the claimant the property so seized. If the ruling is adverse to the claimant, or if a hearing is not applied for in writing within the ten (10) days following notice, and the commissioner determines the products to be salable, the commissioner is authorized to order sale of the property in the manner as herein provided, applying the proceeds from the sale first to the costs incurred in the seizure and sale of such articles and the balance, if any, to the state general fund, to be apportioned as tax under § 57-5-205. In the case of any contraband property seized by any law enforcement officer of any incorporated municipality or of any county and turned over by them to the department for confiscation, there shall be paid to the municipality or to the county served by such officer fifty percent (50%) of the net proceeds thereof. Any such beer, other beverages or vehicles so seized and ordered sold by the commissioner shall be sold at public sale by the department of general services, and the procedure to be followed shall be the same as now authorized by law under § 67-4-1021. It shall be incumbent upon the commissioner to notify a Tennessee distributor handling the same brand(s) of beer and/or other such beverages as that seized of such seizure and impending sale. All confiscated beer, suitable for sale at retail, shall first be offered for sale to the Tennessee wholesaler located nearest the site of the seizure engaged in handling the particular brand of beer involved at the same per case price (state beer barrelage tax included) that the wholesaler would be required to pay for such beer at the brewery. All confiscated beer “suitable for sale at retail” not purchased within ten (10) days by the Tennessee wholesaler, after being notified that such beer had been confiscated and was being offered for sale to such wholesaler, then shall be sold at public sale by the department of general services.
  2. The seventeen percent (17%) wholesale beer tax as authorized in § 57-6-103 shall be added to the public sale price and the funds derived shall be remitted to the city in which the public sale is held. “Suitable for sale at retail” is determined by the commissioner.
  3. The commissioner, before delivering any seized property to the successful bidder, shall require any tax due thereon to be paid to the department of revenue. Any seized beer or other beverages not sold within ninety (90) days following hearing, or declared to be unsalable by the commissioner, shall be destroyed by the commissioner in a manner which the commissioner may prescribe.

    Impl. am. Acts 1959, ch. 9, § 5; impl. am. Acts 1961, ch. 97, § 5; Acts 1969, ch. 299, § 3; 1972, ch. 448, § 5; impl. am. Acts 1972, ch. 543, § 7; Acts 1973, ch. 68, § 8; T.C.A., § 57-234.

57-5-412. Costs and fees of hearing.

Costs incurred in each hearing, including witness fees, mileage expenses and all fees of sheriffs for serving any notices or subpoenas, shall be taxed as costs by the commissioner or the commissioner's authorized representative. All costs and fees for witnesses and/or sheriffs shall be advanced or collected as provided in the case of witnesses attending upon cases in courts of record, and the service of subpoenas requiring their attendance and testimony.

If, upon the hearing, the claimant shall be found by the commissioner, or the commissioner's authorized representative, to be guilty of the matters charged, all of the costs provided for in subsection (a) shall be taxed and charged against the claimant, but if the charge against such claimant shall be dismissed, then such costs shall be paid by the commissioner out of the funds collected under this chapter, after approval by the commissioner, and shall be and constitute lawful expenditures hereunder.

Acts 1969, ch. 299, § 3; T.C.A., § 57-235.

57-5-413. Review of action of commissioner.

Any action of the commissioner shall be reviewable by a petition for a common-law writ of certiorari in the chancery or circuit court of the county in which the offense occurred, which petition shall be filed within ten (10) days from the date of such action. Immediately upon the grant of the writ of certiorari, the commissioner shall cause to be made, certified and forwarded to the court a complete transcript of the proceedings in the cause, which shall contain all the proof submitted before the commissioner. The decision of the commissioner shall be reviewed solely upon the pleadings and transcript of the proceedings before the commissioner, and neither party shall be entitled to introduce any additional evidence in the court. The scope of any review proceedings involving persons already licensed as Tennessee beer wholesalers under this chapter shall be governed by §57-5-108 instead of the procedure set forth herein.

Acts 1969, ch. 299, § 3; 1973, ch. 84, § 3; T.C.A., § 57-236.

Law Reviews.

The Tennessee Department of Revenue and the Uniform Administrative Procedures Act (Mike Norton), 6 Mem. St. U.L. Rev. 303.

57-5-414. Inspection of products, records, documents and premises — Violation.

Every distributor or dealer in beer or other such beverages shall permit the commissioner, or the commissioner's authorized agent or representative, to inspect at any time all products, invoices, books, papers and memoranda as may be deemed necessary by the commissioner in ascertaining whether or not the tax levied under this chapter has been paid, or in determining the amount of such tax due. No licensed distributor or dealer shall be permitted to claim any part of the premises whereon the business was conducted to be exempt from inspection as being the licensed distributor's or dealer's dwelling or home, the application for certificate of registration under this chapter being declared an express waiver of such claim. All persons failing to permit the examination of such products, invoices, books and other memoranda, including the general books, both operating and proprietary ledgers, etc., or interfering with the orderly inspection or examination thereof, or failing to file such reports as may be required by the commissioner, is guilty of a misdemeanor.

Acts 1969, ch. 299, § 3; T.C.A., § 57-237.

Compiler's Notes. The misdemeanor penalty provisions in this section may have been affected by the Criminal Sentencing Reform Act of 1989. See §§39-11-114,40-35-110,40-35-111.

Cross-References. Penalty for violating chapter, §57-5-303.

57-5-415. Enforcement authorities.

  1. Any duly authorized representative, agent or employee of the department of revenue who has been designated by the commissioner to enforce this chapter is authorized and empowered to execute search warrants and do all acts incident thereto, in the same manner as search warrants may be levied by sheriffs and other peace officers. Inspectors, agents, representatives or officers appointed by the commissioner shall be cloaked with and have the duty, power and authority as a police officer to enforce the revenue provisions of this chapter and in the illegal traffic of untaxed beer products. The highway patrol shall likewise have concurrent authority to assist in the enforcement of this chapter and in the illegal traffic of untaxed beer products.
  2. Any duly authorized representative or employee of the department who has been specifically designated by the commissioner to enforce § 57-5-409 is hereby authorized and empowered to go armed or carry a pistol while on active duty engaged in enforcing § 57-5-409.

Acts 1969, ch. 299, § 3; 1970, ch. 578, § 3; 1971, ch. 288, § 1; T.C.A., § 57-238.

57-5-416. Storage at location other than specific retail location for which purchased unlawful.

In order to facilitate the effective collection and enforcement by municipal and county officials of the tax levied by §57-6-103 on all sales of beer by wholesalers to retailers or any other persons, it shall be unlawful for any retailer to store beer purchased for a specific retail location at any place other than that specific retail location.

Acts 1971, ch. 21, § 1; T.C.A., § 57-239; Acts 2018, ch. 933, § 4.

Amendments. The 2018 amendment rewrote the section which read: “Unless authorized in writing by the appropriate county, municipal or metropolitan beer board or committee to do so, it is unlawful for any retailer to store beer at any place other than the address designated on the retailers' beer permit.”

Effective Dates. Acts 2018, ch. 933, § 7. July 1, 2018.

Cross-References. Penalty for violating chapter, §57-5-303.

Part 5 Beer Wholesaler-Supplier Relations

57-5-501. Purpose.

The legislative intent and purpose of this part is to provide a structure for the business relations between suppliers and wholesalers of beer which:

  1. Motivates suppliers and wholesalers to devote reasonable efforts and resources to the sale, distribution and quality control of beer in this state;
  2. Provides for the private settlement of disputes between suppliers and wholesalers as an alternative to civil litigation, which would consume the time and resources of the parties and the judicial system; and
  3. Promotes public health, safety and welfare.

Acts 1990, ch. 618, § 1.

Cross-References. Transportation, title 57, ch. 5, part 4.

57-5-502. Part definitions.

As used in this part, unless the context otherwise requires:

  1. “Agreement” means any agreement between a wholesaler and a supplier, oral or written, whereby a wholesaler is granted the right to purchase and sell a brand or brands of beer with an alcoholic content of five percent (5%) by weight or less sold by a supplier;
  2. “Ancillary business” means:
    1. A business owned by a wholesaler, by a substantial stockholder of a wholesaler, or by a substantial partner of a wholesaler, the primary business of which is directly related to the transporting, storing or marketing of the supplier's products; or
    2. A business owned by a wholesaler, a substantial stockholder of a wholesaler, or by a substantial partner of a wholesaler, which recycles empty beverage containers;
  3. “Designated member” means:
    1. The spouse, child, grandchild, parent, brother or sister of a deceased individual who owned an interest in a wholesaler;
    2. Any person who inherits an ownership interest in a wholesaler;
    3. The appointed and qualified personal representative and the testamentary trustee of a deceased individual owning an interest in a wholesaler; or
    4. The person appointed by a court as the guardian or conservator of the property of an incapacitated individual owning an interest in a wholesaler;
  4. “Good faith” means honesty in fact and the observance of reasonable commercial standards of fair dealing in the trade, as defined in and interpreted under § 47-2-103(1)(b);
  5. “Person” means any individual, partnership, corporation, association, syndicate, or any other combination of individuals;
  6. “Reasonable standards and qualifications” means those criteria established and consistently applied by a supplier to wholesalers in Tennessee and adjoining states who:
    1. Have entered into, continued or renewed an agreement with the supplier during a period of twenty-four (24) months prior to the proposed transfer of the wholesaler's business; or
    2. Have changed managers or successor managers during a period of twenty-four (24) months prior to the proposed change in manager or successor manager of the wholesaler's business;
  7. “Retaliatory action” includes, but is not limited to, the refusal to continue an agreement or a material reduction in the quality of service or quantity of products available to a wholesaler under an agreement, which refusal or reduction is not made in good faith;
  8. “Substantial stockholder” or “substantial partner” means a stockholder of or partner in the wholesaler who owns an interest of ten percent (10%) or more of the partnership or of the capital stock of a corporate wholesaler;
  9. “Supplier” means a manufacturer or importer of beer;
  10. “Transfer of wholesaler's business” or “transfer of the wholesaler's business” means the voluntary sale, assignment or other transfer of all or control of the business, or all or substantially all of the assets of the wholesaler, or all or control of the capital stock of the wholesaler, including without limitation the sale or other transfer of capital stock or assets by merger, consolidation or dissolution, or of the capital stock of the parent corporation, or of the capital stock or beneficial ownership of any other entity owning or controlling the wholesaler; and
  11. “Wholesaler” means a person or entity that sells beer to retailers, but does not include any manufacturer authorized to sell directly to retailers pursuant to § 57-5-101.

Acts 1990, ch. 618, § 2; 2014, ch. 861, §§ 18, 19; 2015, ch. 19, § 4.

Cross-References. Definitions for the Sales chapter of the Uniform Commercial Code, §47-2-103.

57-5-503. Prohibitions.

The following are prohibited under this part:

  1. A wholesaler shall not:
    1. Transfer the wholesaler's business without giving the supplier written notice of the proposed transfer of the business as required by this part; or
    2. Transfer the wholesaler's business without receiving the supplier's written approval for the proposed transfer, where required by an agreement and consistent with this part.
  2. A supplier shall not:
    1. Coerce, or attempt to coerce, any wholesaler to do any illegal act or to violate any law or regulation either by threatening to amend, modify, cancel, terminate, or refuse to renew any agreement existing between the supplier and the wholesaler, or by any other means;
    2. Coerce, or attempt to coerce, any wholesaler to accept delivery of any beer or other commodity which has not been ordered by the wholesaler or, if ordered, has been cancelled by the wholesaler in accordance with reasonable cancellation procedures of the supplier. A supplier may impose reasonable inventory requirements upon a wholesaler if the requirements are made in good faith and are generally applied to other wholesalers in Tennessee and adjoining states having an agreement with the supplier;
    3. Withhold delivery of beer ordered by a wholesaler or change a wholesaler's quota of a brand or brands if the withholding or change is not made in good faith;
    4. Require a wholesaler to purchase one (1) or more brands of beer or other products in order for the wholesaler to purchase another brand or brands of beer for any reason. If a wholesaler has agreed to distribute a brand or brands before March 1, 1990, that wholesaler shall continue to distribute the brand or brands in conformance with this part;
    5. Require a wholesaler to assent to any condition, stipulation or provision unreasonably limiting the wholesaler's right to sell a brand or brands of beer or other products of any other supplier;
    6. Require a wholesaler to submit audited financial information, including, but not limited to, profit and loss statements, balance sheets, financial records or specific information regarding competitive brands, as a condition of renewal or continuation of an agreement;
    7. Require a wholesaler by any means to participate directly in or contribute to any local or national advertising fund or purchase any merchandising material controlled either directly or indirectly by the supplier;
    8. Require a wholesaler to terminate the designation of an individual as a manager or successor manager without just cause. A supplier has just cause to require termination of the designation of an individual as a manager or successor manager only if the person designated by the wholesaler fails to meet reasonable standards and qualifications. In any action challenging such termination, the supplier shall have the burden of proving that such person fails to meet such standards and qualifications;
    9. Take any retaliatory action against a wholesaler who files a complaint with any regulatory body or in any court of law regarding an alleged violation by the supplier of federal, state or local law or of any administrative rule; or
    10. Threaten to cancel or withhold credit, or to reduce the time period normally given the wholesaler to make payment on a delivery from the supplier as a means of compelling the wholesaler to meet certain standards of performance in any area of business not directly related to credit.

Acts 1990, ch. 618, § 3.

57-5-504. Transfer of wholesaler's business.

  1. A wholesaler shall give the supplier written notice of the wholesaler's proposed transfer of the wholesaler's business not less than thirty (30) days prior to the completion of the transfer, except in cases of transfer by inheritance, in which case the transferee shall give the supplier written notice of the transferee's ownership interest within a reasonable time after the transfer is completed.
  2. A supplier's consent shall not be required for any transfer of the wholesaler's business to a designated member or for any transfer of less than control of the wholesaler's business; however, a supplier's written consent shall be required for any transfer of the wholesaler's business to a person other than a designated member.
  3. Notwithstanding subsection (b), written consent from a supplier shall be required for any transfer of the wholesaler's business to a designated member or other transferee if any of the following conditions apply:
    1. The transferee or any owner of the transferee has been convicted of a felony under the United States Code or the laws of any state which would adversely affect the good will or interests of the wholesaler or supplier;
    2. The transferee or any owner of the transferee has had a previous alcoholic beverage license revoked or suspended by the regulatory agency of the United States government or any state, whereby service was interrupted for more than ninety (90) days;
    3. The transferee or any owner of the transferee is insolvent or has filed any voluntary or involuntary petition under any bankruptcy or receivership laws, or has executed an assignment for the benefit of creditors; or
    4. The transferee or any owner of the transferee has had any previous agreement with the supplier involuntarily terminated, cancelled, discontinued or not renewed by the supplier for good cause.
  4. If the transferee is a designated member, a supplier shall not interfere with, prevent or unreasonably delay the transfer of the wholesaler's business. An unreasonable delay is one that exceeds thirty (30) days after the intended date of transfer as set forth in the notice required by subsection (a).
  5. If the transferee is not a designated member, a supplier may not withhold consent or unreasonably interfere with or delay the transfer if the transferee meets reasonable standards and qualifications which are nondiscriminatory and material. An unreasonable delay is one that exceeds thirty (30) days after the receipt of all material information reasonably requested. The supplier shall have the burden of proving that the proposed transferee does not meet such standards and qualifications.

Acts 1990, ch. 618, § 4.

57-5-505. Termination or modification of agreement with wholesaler by supplier upon written notice — Conditions.

  1. A supplier may amend, modify, terminate, cancel, discontinue or fail to renew an agreement with a wholesaler immediately upon written notice given by the supplier as provided in § 57-5-508 only if any of the following occurs:
    1. Revocation of a governmental permit held by the wholesaler, whereby the wholesaler cannot service the wholesaler's sales territory for a period of more than sixty (60) days;
    2. Insolvency of the wholesaler, the filing of any petition by or against the wholesaler under any bankruptcy or receivership law, or the assignment for the benefit of creditors or dissolution or liquidation of the wholesaler, where such condition materially affects the wholesaler's ability to remain in business;
    3. Fraud by the wholesaler in dealings with the supplier or its products that adversely affects the interests of the supplier;
    4. Violation of § 57-6-104(f), if it was done at the direction or with the knowledge of a substantial stockholder or substantial partner. If a governmental permit held by a wholesaler is suspended temporarily so that the wholesaler cannot service its sales territory for a brand or brands, then upon agreement of the supplier of that brand or brands and the wholesaler whose permit has been suspended, another wholesaler who handles the same brand or brands can service the sales territory during the period of suspension; or
    5. The wholesaler has failed to pay for beer ordered and delivered in accordance with established terms with a supplier and fails to make full payment within five (5) business days after receipt of written notice of the delinquency and demand for immediate payment from the supplier.
  2. Where the wholesaler notifies the supplier in writing by certified mail of the wholesaler's intent to cease distribution of a brand sold by the supplier, the supplier can amend, modify, terminate, cancel, discontinue or fail to renew the agreement immediately with respect to that brand.

Acts 1990, ch. 618, § 5.

57-5-506. Termination or modification of agreement with wholesaler by supplier in not less than 30 days upon written notice — Conditions.

A supplier may amend, modify, terminate, cancel, discontinue or fail to renew an agreement with a wholesaler not less than thirty (30) days after written notice is given by the supplier as provided in §57-5-508 if any of the following events occur:

  1. The supplier discontinues production or discontinues distribution in this state of a brand sold by the supplier to the wholesaler.
    1. Nothing in this section shall prohibit a supplier from conducting test marketing of a new brand of beer or a brand of beer which is not currently being sold in this state; provided, that the supplier has notified the state in writing of its plans to conduct test marketing, which notice shall describe the market area in which the test shall be conducted, the name or names of the wholesaler or wholesalers who will be selling the beer, the name or names of the brand of beer being tested, and the period of time, not to exceed eighteen (18) months, during which the testing will take place.
    2. If a supplier discontinues production or distribution in this state of a brand pursuant to this section, then that supplier cannot reintroduce that brand into this state for a period of twelve (12) months after providing the written notice required by this section.
    3. Whenever a supplier discontinues production or distribution in this state of a brand, the supplier shall be required at the wholesaler's request to purchase from the wholesaler any unsold inventory of the brand; or
  2. A stockholder or a partner of the wholesaler has been convicted of a felony under the United States Code or the laws of any state which would adversely affect the good will or interests of the wholesaler or supplier. If another stockholder or other stockholders, or partner or partners, or a designated member or members notifies the supplier in writing within thirty (30) days after the conviction of an intent to purchase the partnership interest or the stock of the offending stockholder or partner and purchases the interest or stock within a reasonable time after notice is given, then this subdivision (2) shall not apply. Any purchase of an interest or stock pursuant to this subdivision (2) will be subject to the requirements of supplier consent contained in § 57-5-504.

Acts 1990, ch. 618, § 6.

57-5-507. Termination or modification of agreement with wholesaler by supplier — Prerequisites.

Except as provided in §§57-5-505 and57-5-506, a supplier may not amend, modify, terminate, cancel, discontinue or refuse to renew an agreement with a wholesaler, or cause a wholesaler to resign from an agreement, unless the supplier has complied with the following requirements:

  1. The supplier shall give written notice to the wholesaler, as provided in § 57-5-508, not less than ninety (90) days prior to the effective date of the amendment, modification, termination, cancellation, discontinuance or nonrenewal;
  2. The supplier acts in good faith. The supplier shall have the burden of proving that it acted in good faith;
  3. The supplier has good cause. In any action challenging the supplier's action under this section, the supplier shall have the burden of proving that it has good cause. Good cause exists when all of the following have occurred:
    1. The wholesaler has failed to comply substantially with essential and reasonable requirements imposed upon the wholesaler by the agreement, if such requirements are not discriminatory, either by their terms or in the methods of their enforcement, as compared with requirements imposed on other wholesalers in Tennessee or adjoining states and if such requirements are not in violation of any law or regulation;
    2. The supplier first acquired knowledge of the failure described in subdivision (3)(A) not more than twenty-four (24) months before the date notification was given pursuant to this section;
    3. The supplier has given written notice to the wholesaler, stating specifically the manner in which the wholesaler has failed to comply with the agreement; and
    4. The wholesaler was given adequate opportunity to use good faith efforts to correct the failure to comply with the agreement. Adequate opportunity shall be thirty (30) days to submit a plan of corrective action to comply with the agreement and an additional ninety (90) days after the thirty-day period to correct the failure in accordance with the plan.

Acts 1990, ch. 618, § 7.

57-5-508. Termination or modification of agreement with wholesaler by supplier — Notice.

Notice by a supplier of any amendment, modification, termination, cancellation, discontinuance or refusal to renew an agreement with the wholesaler shall be written, shall be made by certified mail, and shall contain all of the following:

  1. A statement of intention to amend, modify, terminate, cancel, discontinue or refuse to renew the agreement;
  2. A statement of the reason(s) for the amendment, modification, termination, cancellation, discontinuance or nonrenewal; and
  3. The date on which the amendment, modification, termination, cancellation, discontinuance or nonrenewal will take effect.

Acts 1990, ch. 618, § 8.

57-5-509. Disputes — Arbitration.

Any dispute arising under this part may be settled by arbitration if every party involved in the dispute agrees to arbitrate. Arbitration shall be conducted in accordance with the Commercial Arbitration Rules of the American Arbitration Association and the laws of this state, and judgment upon the award rendered by the arbitrator(s) may be entered in any court having jurisdiction thereof. A wholesaler has the absolute right to refuse to arbitrate any dispute arising under this part.

Acts 1990, ch. 618, § 9.

57-5-510. Legal remedies.

  1. If a supplier engages in conduct prohibited under this part, a wholesaler with which the supplier has an agreement may maintain a civil action against the supplier to recover actual damages, all court costs, and, in the court's discretion, attorney's fees, reasonably incurred as the result of the prohibited conduct. If a wholesaler engages in conduct prohibited under this part, a supplier with which the wholesaler has an agreement may maintain a civil action against the wholesaler to recover actual damages, all court costs, and, in the court's discretion, attorney's fees, reasonably incurred as a result of the prohibited conduct. Actual damages shall include damages to any ancillary business of the wholesaler incurred as a result of the prohibited conduct.
  2. A supplier or wholesaler may bring an action for declaratory judgment for determination of any controversy arising pursuant to this part.
  3. Upon proper application to the court, a supplier or wholesaler may obtain injunctive relief against any violation of this part.
  4. The remedies provided by this section shall not abolish any other cause of action or remedy available to the supplier or the wholesaler.
  5. Any legal action taken under this part, or pursuant to a dispute arising out of an agreement or breach thereof, or over the provisions of an agreement, shall be filed in a court, state or federal, located in Tennessee, which state court is located in, or which federal court has jurisdiction and venue of, the county in which the wholesaler maintains its principal place of business in this state.

Acts 1990, ch. 618, § 10.

57-5-511. Waiver of rights by wholesaler prohibited — Voluntary settlement of disputes.

A wholesaler may not waive any of the rights granted in any provision of this part and the provisions of any agreement which would have such an effect shall be null and void; however, if a good faith dispute arises between the parties as to the meaning of any rights or obligations created by this part, or the performance by a party of its obligations, the parties may enter into a written voluntary settlement of the dispute.

Acts 1990, ch. 618, § 11.

57-5-512. Applicability.

  1. This part applies to agreements in existence on March 1, 1990, as well as agreements entered into or renewed after that date.
  2. A transferee of a wholesaler's business that continues to operate the business shall have the benefit of and be bound by all terms and conditions of the agreement with the supplier in effect on the date of the transfer.
  3. If a particular brand or brands of beer are transferred by purchase or otherwise from one supplier to another, the new supplier shall be bound by all terms and conditions of each agreement of the previous supplier with respect to that brand or brands in effect on the date of the transfer as a condition of continuing to sell that brand or brands in this state.
  4. An agreement to purchase and sell a brand of beer shall include the right to purchase and sell each other beer marketed under the same principal brand name or trademark, regardless of any variation in any other words, names, symbols or devices used to identify such beers and regardless of any differences in the packaging, formulation or production of such beers. Notwithstanding the foregoing, an agreement to purchase and sell a brand of beer shall not include the right to purchase and sell any other beer solely as a result of the use of the manufacturer's or importer's trade name in both such beers' packaging, so long as such trade name is not part of the beers' principal brand name or trademark.
  5. This part shall only be applicable to agreements between wholesalers and suppliers related to the sale or distribution of beer with an alcoholic content of five percent (5%) by weight or less. All agreements between wholesalers and suppliers related to the sale or distribution of beer with an alcoholic content greater than five percent (5%) by weight shall be governed by title 47, chapter 25, part 15.

Acts 1990, ch. 618, § 12; 1994, ch. 663, § 1; 1996, ch. 748, § 1; 2014, ch. 861, § 23.

Part 6 Tennessee Responsible Vendor Act of 2006

57-5-601. Short title.

This part shall be known and may be cited as the “Tennessee Responsible Vendor Act of 2006.”

Acts 2006, ch. 864, § 2.

Cross-References. Sales to minors or intoxicated persons prohibited, §57-5-301.

57-5-602. Legislative intent.

It is the intent of the legislature through the provisions of this part:

  1. To eliminate the sale of beer for off-the-premises consumption to, and consumption of beer by, underage persons;
  2. To reduce intoxication and to reduce accidents, injuries, and deaths in the state that are related to intoxication;
  3. To encourage vendors to be prudent in their selling practices of beer, and to restrict or reduce the sanctions that may be imposed in administrative proceedings by local beer boards against those vendors who voluntarily comply with responsible practices in accordance with this part; and
  4. To uniformly apply all provisions in this part statewide, including training, certification and the imposition of penalties or other sanctions for violations of this part, and that no variations from the provisions on training, certification or penalties are permissible.

Acts 2006, ch. 864, § 3.

57-5-603. Part definitions.

As used in this part, unless the context otherwise requires:

  1. “Beer” has the same meaning as defined in § 57-5-101(b);
  2. “Beer board” means any entity issuing beer permits for off-premise consumption, pursuant to part 1 of this chapter;
  3. “Certified clerk” means a clerk who has successfully satisfied the training requirements contained in this part, and who has received certification from a responsible vendor training program;
  4. “Clerk” means any person working in a capacity to sell beer directly to consumers for off-premise consumption;
  5. “Commission” means the alcoholic beverage commission;
  6. “Responsible vendor” means a vendor that has received certification from the commission pursuant to this part;
  7. “Responsible vendor training program” means a training program related to the responsible sale of beer for off-premise consumption that has met all the statutory and regulatory requirements set forth in this part, and in commission rules and regulations; and
  8. “Vendor” means a person, corporation or other entity that has been issued a permit to sell beer for off-premise consumption.

Acts 2006, ch. 864, § 4.

57-5-604. Authority of commission.

The commission shall have the authority to approve all responsible vendor training programs. The commission shall establish requirements and guidelines for responsible vendor training programs and vendor and clerk certifications. The commission shall establish and keep a master list of certified clerks and clerks not eligible for certification.

Acts 2006, ch. 864, § 5.

57-5-605. Vendor certification — Rules and regulations — Monitoring and enforcing compliance — Statistical reports by beer boards and commission.

  1. A vendor who seeks certification as a responsible vendor shall provide to the commission, pursuant to procedures adopted by the commission, evidence of compliance with the requirements of this part. Upon satisfactory proof that the vendor has complied with the requirements, the commission shall certify the vendor as a responsible vendor. Certification as a responsible vendor shall be renewed every year. Responsible vendors may have their own training programs certified, or send their employees to any training program certified by the commission.
  2. The commission shall adopt rules and regulations for monitoring compliance by responsible vendors and for revoking or suspending a responsible vendor's certification for noncompliance with this part.
  3. The commission is authorized to monitor and enforce compliance with this part. The commission may impose fines on responsible vendors whose training programs fail to satisfy or maintain the requirements of this part or commission rules. The commission may further impose fines on vendors who hold themselves out as being a responsible vendor when in fact they do not hold that status. The commission may also impose fines on responsible vendors who willfully fail to comply with the requirements of this part.
  4. Determination of compliance with the responsible vendor program is the sole province of the commission.
    1. As used in this subsection (e), “beer board” means the local legislative body or committee appointed by the local legislative body having authority to issue licenses or permits under this chapter.
    2. To the extent the beer board has access to the information required pursuant to this subsection (e), the beer board shall file with the alcoholic beverage commission an annual statistical report by February 1 of each year based on the previous calendar year’s information detailing the following:
      1. The total number of beer permits or licenses issued by the beer board for off-premises consumption;
      2. The number of violations for the sale of beer for off-premises consumption to a person under twenty-one (21) years of age resulting from:
        1. A “sting” conducted pursuant to § 39-15-413; and
        2. Arrests made under conditions not related to a “sting”;
      3. Whether the violation of subdivision (B) occurred at an establishment participating in the responsible vendor program;
      4. Whether if a “sting” was conducted pursuant to § 39-15-413 at an establishment participating in the responsible vendor program, the underage person used in the “sting” was unsuccessful in making the purchase;
      5. The type and number of violations other than the sale of beer for off-premises consumption to a person under twenty-one (21) years of age occurred at establishments selling beer for off-premises consumption;
      6. The name of the license or permit holder at the location where the violation occurred; and
      7. The specific penalty imposed by the beer board for each violation upon a finding that a violation occurred.
    3. The alcoholic beverage commission shall compile the statistical information received from the beer boards and file a report with the state and local government committee of the senate and the state government committee of the house of representatives by March 15 of the year in which the report is received, together with recommendations for legislative changes related to the responsible vendor program, if any are recommended by the commission.
    4. The report made pursuant to subdivision (3) shall be made available by the alcoholic beverage commission to any person filing a written request for a copy of the report.

Acts 2006, ch. 864, § 6; 2012, ch. 964, § 1; 2013, ch. 236, § 68.

57-5-606. Qualification for responsible vendor status.

In order to qualify for responsible vendor status, the vendor shall comply with the following requirements:

    1. Require each and every clerk to successfully complete a responsible vendor training program within sixty-one (61) days of commencing employment, whether the employment is for the first time, after rehiring, or for a different responsible vendor. Responsible vendors shall, prior to employing a clerk, verify with the commission that the clerk is eligible for certification;
    2. Each clerk shall successfully complete the responsible vendor training program and after doing so, receive a certificate of completion from the program trainer in a format that is in accordance with rules promulgated by the commission. The training program shall be a minimum of one (1) hour of instruction. A clerk shall not be authorized to sell beer for off-premise consumption, unless the clerk has successfully completed the responsible vendor training program and has received a certificate of completion or is within sixty-one (61) days of the date of hire. The original certificate of completion shall be maintained by the responsible vendor employing the clerk. The responsible vendor shall provide the commission with the names and other identifying information as required by the commission, of certified clerks within twenty-one (21) days of the date of training; and
    3. Each clerk shall be issued a name badge by the responsible vendor employer. The name badge must have the clerk's first name clearly visible. Clerks shall wear this name badge at all times during which they are on duty;
  1. Provide instruction for its employees approved by the commission, which shall include the following:
    1. Laws regarding the sale of beer for off-premise consumption;
    2. Methods of recognizing and dealing with underage customers; and
    3. Procedures for refusing to sell beer to underage customers and for dealing with intoxicated customers;
  2. Require all certified clerks to attend at least one (1) annual meeting, at which the responsible vendor shall disseminate updated information prescribed by the commission and the responsible vendor policies and procedures related thereto. In order for the clerk's certification to remain valid, the clerk must attend an annual meeting each year following the clerk's original certification; and the responsible vendor must keep records thereof. Responsible vendors shall notify the commission if a certified clerk does not attend an annual meeting as required by this section. The commission may, at any time, require responsible vendors to disseminate to certified clerks information from the commission that is related to changes in state law or commission rules; and
  3. Maintain employment and all responsible vendor training records of all clerks.

Acts 2006, ch. 864, § 7; 2008, ch. 877, § 2; 2019, ch. 136, § 3.

Amendments. The 2019 amendment added the second sentence in (1)(B).

Effective Dates. Acts 2019, ch. 136, § 6. August 1, 2019.

57-5-607. Loss of certification for sale to minor.

If a beer board determines that a sale to a minor occurred by an off-premise beer permit holder, then the certification of the clerk making the sale shall be invalid and the clerk may not reapply for a new certificate for a period of one (1) year from the date of the beer board's determination. Beer boards shall report the names of such clerks to the commission within fifteen (15) days of finding that a sale to a minor occurred. The commission shall notify the responsible vendor of their certified clerks who have lost their certification within fifteen (15) days of notification by the beer board.

Acts 2006, ch. 864, § 8.

57-5-608. Suspension or revocation of certification.

  1. A permit under this part may not be suspended or revoked by a beer board based on a clerk's illegal sale of beer to a minor person who is not of lawful drinking age, if the clerk is properly certified and has attended annual meetings since the original certification, or is within sixty-one (61) days of the date of hire at the time of the violation.
  2. Notwithstanding subsection (a), the commission shall revoke the certification of a vendor certified as a responsible vendor, if the vendor had knowledge of the violation or should have known about the violation, or participated in or committed the violation. If the commission revokes a vendor's certification under this section, the vendor shall be penalized for the violation by the beer board as if the vendor were not certified as a responsible vendor.
  3. Notwithstanding subsection (a) or any other law, the commission shall revoke the vendor's status as a certified responsible vendor, if the vendor has two (2) violations within a twelve-month period. The revocation shall be for a period of three (3) years.

Acts 2006, ch. 864, § 9.

57-5-609. Responsible vendor fees — Responsible vendor certification fund.

  1. Each entity submitting and receiving approval for a responsible vendor training program shall pay an annual nonrefundable fee of thirty-five dollars ($35.00). In addition, each responsible vendor shall pay an annual fee that is based on the number of certified clerks existing at the time a responsible vendor applies to the commission for certification. The fees shall be as follows:
    1. 0-15 certified clerks - $25.00;
    2. 16-49 certified clerks - $75.00;
    3. 50-100 certified clerks - $150; and
    4. Over 100 certified clerks - $250.
  2. The fees shall be deposited by the commission in a special agency account to be known as the responsible vendor certification fund, referred to in this part as the fund.
  3. Any fund balance remaining unexpended at the end of a fiscal year shall be carried forward into the subsequent fiscal year and shall continue to be preserved for the administration of the vendor certification program.
  4. Interest accruing on investments and deposits of the fund shall be carried forward into the subsequent fiscal year.
  5. Moneys in the fund shall be invested by the state treasurer in accordance with § 9-4-603. The fund shall be administered by the commission.
  6. Moneys in the fund shall only be expended and obligated in accordance with appropriations made by the general assembly for the purposes as provided in this part.

Acts 2006, ch. 864, § 10.

57-5-303. Violation of law, rule or regulation — Penalties.

57-5-404. Intrastate transportation without payment of tax unlawful — Documents required — Prima facie evidence of violation.

Chapter 6 Wholesale Taxes

Part 1 Wholesale Beer Tax

57-6-101. Short title.

This part shall be known as the “Wholesale Beer Tax Act.”

Acts 1953, ch. 76, § 1 (Williams, § 1051.18); T.C.A. (orig. ed.), § 57-301.

Textbooks. Tennessee Jurisprudence, 16 Tenn. Juris., Intoxicating Liquors, § 4.

Law Reviews.

Preferences, Priorities, and Powers of the State in the Collection of Delinquent Revenue: Tennessee's Tax Enforcement Procedures Act (Donald J. Serkin), 8 Mem. St. U.L. Rev. 707.

57-6-102. Part definitions.

For the purposes of this part:

  1. “Beer” means the beverage defined in § 57-5-101(b);
  2. “County” means that portion of a county outside the corporate limits of municipalities therein;
  3. “Department” means the department of revenue;
  4. “Gross tax” means the amount of tax collected by a wholesaler;
  5. “Municipality” means any town, city or taxing district incorporated under the laws of this state;
  6. “Net tax” means the amount of tax to be paid to a county or municipality after deduction of the percentage due the department and the percentage retained by a wholesaler;
  7. “Person” means any individual, partnership, corporation, association, syndicate, or any other combination of individuals;
  8. “Quality control standard” means a standard under which a wholesaler determines whether beer is marketable due to product deterioration or due to improper packaging or handling by the manufacturer or wholesaler;
  9. “Retailer” means a person who sells beer for consumption and not for resale;
  10. “Wholesale” or “wholesale sale” means a sale, gift, or other transfer and delivery of beer by a wholesaler to any person other than another wholesaler, but there shall not be included within the meaning of either term any gratuitous dispensing of beer by a brewery of its own manufacture which is consumed on the premises; and
  11. “Wholesaler” means a person or entity that sells beer to retailers, including any manufacturer authorized to sell directly to retailers pursuant to § 57-5-101.

Acts 1953, ch. 76, § 2 (Williams, § 1051.19); impl. am. Acts 1959, ch. 9, § 14; Acts 1969, ch. 171, § 1; 1969, ch. 212, § 2; T.C.A. (orig. ed.), § 57-302; Acts 1983, ch. 229, § 8; 1986, ch. 524, § 1; 1988, ch. 466, § 1; 1990, ch. 618, § 13; 2005, ch. 298, § 4; 2015, ch. 19, § 5.

Attorney General Opinions. Licensing and taxation of hotels selling alcohol for consumption on the premises.  OAG 16-05, 2016 Tenn. AG LEXIS 3 (2/9/2016).

Decisions Under Prior Law

1. Municipality.

1. Municipality.

Town continued to exist under its original charter for sole purpose of promoting health, comfort and prosperity of citizens as a whole within its boundaries notwithstanding fact that authority to maintain fire department and to exercise certain police powers was withdrawn by subsequent amendment of its charter, and was a municipality within meaning of statute authorizing governing body of municipality to impose and collect privilege tax not to exceed 10 percent on retail sale of beer within its boundaries. Hamilton County v. East Ridge, 193 Tenn. 677, 249 S.W.2d 895, 1952 Tenn. LEXIS 341 (1952).

57-6-103. Levy of tax — Disposition — Collection.

  1. There is hereby imposed on the sale of beer at wholesale a tax equal to thirty-five dollars and sixty cents ($35.60) per barrel of thirty-one liquid gallons (31 gals.) of beer sold. The tax upon barrels containing more or less than thirty-one gallons (31 gals.) shall be taxed at a proportionate rate. Every wholesaler, on or before the twentieth day of each month, based on wholesale sales in the preceding calendar month, shall remit to each county the amount of the net tax on such person's wholesale sales to retailers and other persons in the county, and to each municipality the amount of the net tax on such person's wholesale sales to retailers and other persons within the corporate limits of the municipality.
  2. For the purpose of this chapter, all sales made by wholesalers at the wholesalers' places of business as well as any sale or transfer contemplated by § 57-5-101(c)(2) by a manufacturer operating as a retailer to a location owned or operated by such manufacturer-retailer, shall be deemed to be wholesale sales and the tax herein imposed shall be collected on all such sales.
  3. The tax collected on any such sales made to licensed retailers shall be paid to the county or municipality in which the retailer's place of business is located, and the tax on all other sales made at the wholesaler's place of business shall be paid to the county or city in which the wholesaler's place of business is located.
  4. Seventeen cents (17¢) of the gross tax owed per barrel shall be remitted at the same time to the department, to be kept in a special fund and to be used only for expenses of the department in the administration of this chapter.
  5. Ninety-two cents (92¢) of the gross tax owed per barrel shall be retained by the wholesaler or manufacturer operating as a retailer to defray the cost of collecting and remitting the tax.
  6. Any municipality having a metropolitan form of government and a population of over four hundred fifty thousand (450,000), according to the 1990 federal census or any subsequent federal census may, by ordinance of its legislative body, designate the county clerk as the collector of the tax herein authorized for the entire metropolitan taxing jurisdiction.
    1. A municipality that is annexing territory by extension of its corporate limits or a new incorporating municipality shall provide written notice of the date of the annexation or incorporation and the name and address of each retailer located in the annexed or newly incorporated territory to each wholesaler selling beer within the annexed or newly incorporated territory. The municipality shall deliver the written notice to the wholesaler's representative designated pursuant to § 57-5-105(c)(6). The tax imposed by this section shall be due to the municipality beginning with the first full calendar month after receipt of the notice required by this subsection (g) and thereafter.
    2. Taxes paid to a county pursuant to this section on sales to a retailer made before January 1, 2000, shall be deemed to satisfy any obligations that the wholesaler may have to pay taxes on the same sales to such municipality that has annexed or newly incorporated the territory where the retailer is located.

Acts 1953, ch. 76, § 3 (Williams, § 1051.20); T.C.A. (orig. ed.), § 57-303; Acts 1983, ch. 234, § 1; 1994, ch. 758, § 2; 1999, ch. 47, § 1; 2013, ch. 189, §§ 1-7.

Compiler's Notes. For tables of populations of Tennessee municipalities, see Volume 13 and its supplement.

Cross-References. Changes in municipal boundaries, effect upon receipt and distribution of tax revenues, §6-51-115.

Exemption from wholesale beer tax, §57-6-111.

Receipt and distribution of tax revenues from annexed areas, §6-51-115.

Wholesale beer tax, exclusiveness, §57-6-112.

Law Reviews.

Local Government Law (Clyde L. Ball), 6 Vand. L. Rev. 1206.

57-6-104. Wholesale prices, container sizes, and sales territories — Regulations — Information declared public record.

  1. Each wholesaler shall maintain a wholesale price list, and shall file the list with the department and with the tax collecting official of each county and municipality wherein the wholesaler makes wholesale sales. Notice of any change in such price list shall be delivered to the department and the tax collecting official of each county and municipality as aforementioned. Notices required herein shall be filed as follows:
    1. In case of a new business or a wholesaler acquiring a new brand not previously distributed, a price list shall be filed within five (5) days after either occurrence; and
    2. In case of any change in an existing price list previously filed, a revised price list shall be filed at least three (3) days prior to the effective date of any change.
  2. A wholesaler shall not be permitted to file a wholesale price list that reduces the price of beer on quantity sales by brand, container, material and category even though the quantity wholesale price is uniform to all retailers and to all other persons. The price shall be fixed on each brand sold by container, material and category. It shall be the same price regardless of the quantity of beer sold of a given brand by container, material and category.
    1. A wholesaler shall not sponsor or participate in any price-cutting maneuver, device or promotion by changing the wholesale price of beer of a given brand, container, material and category. As used in this section, “category” means cans, returnable bottles, nonreturnable bottles, kegs and barrels; “container” means size in ounces; “material” means the principal material used to manufacture each category type, including, but not limited to, metal, glass or plastic.
    2. Nothing in this section shall prevent a wholesaler from permanently reducing the wholesale price of beer. However, any such wholesale price reduction to be construed to be permanent must remain in effect for at least three hundred sixty (360) days, or otherwise it shall be considered a wholesale beer price-cutting maneuver, device or promotion, and in direct violation of this section.
    3. Any wholesaler has the authority to increase the wholesale price of beer, and, in such an event, the increased wholesale price shall be construed and considered to be the posted wholesale beer price. There shall be no limitation on the number of increases of the wholesale price of beer allowed any wholesaler, but no increased wholesale price of beer shall be reduced by the wholesaler for at least three hundred sixty (360) days.
    4. Nothing in this section shall prevent a wholesaler from changing the wholesale price of beer on sales made only at the wholesaler's warehouse to retailers and other persons, regardless of the time element, as referred to in this section in cases of emergency where a wholesaler is unable to make delivery of beer to retail establishments.
    5. Nothing in this section shall prevent a wholesaler from raising the wholesale price of beer during a three hundred sixty (360) day posting period in an amount less than or equal to any increase in the federal excise tax or the state privilege tax levied in § 57-5-201. Such price increase shall be filed within ten (10) days of the date the tax increase takes effect.
  3. All wholesale beer price lists in their entirety are hereby declared to be a public record.
  4. Every manufacturer or importer of beer as defined in § 57-6-102 shall designate sales territories for each of its brands sold in Tennessee, and shall name one (1) licensed beer wholesaler in each territory who, within such territory, shall be the exclusive wholesaler for the brand or brands; provided, that if any such manufacturer or importer supplies more than one (1) brand, exclusive territories may be granted to a different wholesaler for the sale of each brand. No wholesaler shall distribute the specified brand or brands of beer outside such wholesaler's assigned territory, or shall knowingly sell to a retailer whose licensed retail establishment is located outside such wholesaler's assigned territory.
    1. Within thirty (30) days after March 15, 1973, or within ten (10) days prior to the introduction of a new brand of beer in a territory, each manufacturer or importer shall submit to the commissioner, in duplicate, a sworn affidavit containing a description of the geographical boundaries of each territory for each brand of its products, the name and address of the wholesaler and the notarized signature of the wholesaler. Territories in effect on February 1, 1973, and those territories established for new brands entering the market subsequent to that date, shall constitute the exclusive sales territory for the brands and wholesalers involved. Should a manufacturer or importer desire to change wholesalers, or in any way alter the territory of a wholesaler for any brand, such manufacturer or importer shall file with the commissioner and each wholesaler involved, not less than ninety (90) days prior to the effective date of such change, a notarized notice of intent, in duplicate, containing:
      1. A description of the geographical boundaries of the proposed territory;
      2. The name and address of the wholesaler currently distributing such brand or brands in the territory;
      3. The name and address of the proposed wholesaler and the notarized signature of the proposed wholesaler; and
      4. The name and address of all persons or firms having a financial interest in the proposed wholesale business.
    2. The ninety-day waiting period shall be waived if the proposed change is agreeable to all parties involved.
  5. The designated territory of beer wholesalers shall be deemed to be a matter of public record, and a copy shall be made available upon request to the commissioner.
  6. A violation of this section is a Class C misdemeanor.

Acts 1953, ch. 76, § 5 (Williams, § 1051.22); Acts 1969, ch. 171, § 2; 1973, ch. 6, § 3; 1974, ch. 571, § 1; T.C.A. (orig. ed.), § 57-305; Acts 1986, ch. 524, §§ 2, 3; 1987, ch. 75, § 1; 1989, ch. 13, § 1; 1989, ch. 591, § 113; 1990, ch. 617, § 1; 1990, ch. 618, § 13; 1995, ch. 89, § 1; 1998, ch. 857, §§ 2, 3; 2002, ch. 856, § 1d; 2005, ch. 499, §§ 10-14.

Compiler's Notes. Acts 2002, ch. 856, § 10, effective July 4, 2002, provided that notwithstanding any provision of law to the contrary, the commissioner of revenue is authorized to waive tax liability and associated interest and penalties otherwise imposed for failure to pay taxes levied pursuant to that act in a timely manner, but only to the extent that the taxpayer or vendor can demonstrate, to the commissioner's satisfaction, that the taxpayer's or vendor's noncompliance with the requirements of the act unavoidably and directly resulted from the close proximity of the effective date of the act with implementation of the increase in tax rates or items or activities taxed pursuant to the provisions of the act. Section 14(j) of the act provided that § 10 be repealed effective September 2, 2002.

Acts 2002, ch. 856, § 13 provided that no expenditure of public funds pursuant to that act shall be made in violation of the provisions of Title VI of the Civil Rights Act of 1964, as codified in 42 U.S.C. § 2000d.

Cross-References. Mandatory suspension for violation of this section, §57-6-114(b).

Penalty for Class C misdemeanor, §40-35-111.

57-6-105. Records and reports.

  1. The department shall promulgate rules and regulations covering reports to be made, records to be kept, and other matters pertaining to the administration and enforcement of this part.
  2. Without limitation as to other matters to be covered, such rules and regulations shall require each wholesaler to report monthly to the department the quantities of the wholesale sales, broken down by unit prices and sizes and types of containers, within each county and municipality in which the wholesaler does business, and to send the tax collecting official of each county and municipality a copy of this report; provided, that wholesalers shall not be required to report sales to individual retailers.
  3. Such rules and regulations shall also require each retailer or the retailer's agent to sign a delivery ticket each time when beer is received from a wholesaler; the wholesaler shall keep the signed original or a digital copy, and the retailer shall retain the duplicate of each such delivery ticket for at least two (2) years, subject to inspection by the department, county or municipality.
  4. Each wholesaler shall keep records showing dates of sale, unit prices, quantities, and sizes and types of containers of beer sold to each individual retailer with whom the wholesaler does business, and such records shall be retained for at least two (2) years, subject to audit by the department, and/or county and/or municipality.

Acts 1953, ch. 76, § 6 (Williams, § 1051.23); T.C.A. (orig. ed.), § 57-306; Acts 1986, ch. 525, § 2; 2012, ch. 657, § 10.

57-6-106. Investigations by the department.

  1. The department on its own initiative may, or upon request of any county or municipality receiving this tax shall, make investigations to determine whether the full amount of tax imposed by this part has been paid, providing that any county or municipality requesting such investigation may designate an agent to participate in the investigation. For this purpose, wholesalers and retailers shall make their books and records with respect to beer purchases, sales and inventories available for inspection and audit at all reasonable business hours, and shall furnish any information with respect to beer purchases, sales and inventories required by the department. The results of such investigations shall be reported to counties and municipalities concerned.
  2. The department, upon request of any county or municipality concerned, shall provide information available in the department with respect to the administration of this part, including the amount of tax collected and remitted, within the county or municipality.

Acts 1953, ch. 76, § 8 (Williams, § 1051.25); T.C.A. (orig. ed.), § 57-308.

Law Reviews.

Selected Tennessee Legislation of 1983 (N. L. Resener, J. A. Whitson, K. J. Miller), 50 Tenn. L. Rev. 785 (1983).

57-6-107. Wholesaler's bond — Collection of delinquent taxes — Penalties.

  1. Every wholesaler shall furnish an indemnity or personal bond, satisfactory to the department and payable to the department, as agent of the counties and municipalities involved, in an amount equivalent to the amount of gross tax payable under this part, based on the wholesaler's highest month's sales in the preceding twelve (12) months or on an estimate of sales in the case of a wholesaler just commencing business. In no event shall a bond in excess of ten thousand dollars ($10,000) be required.
  2. Should any wholesaler fail or refuse to remit the tax on or before the twentieth of the month when due, the department or any county or municipality concerned may institute legal action for collection of such delinquent taxes by any method now authorized by law for the collection of delinquent privileges taxes, or by suit.
  3. In addition to the hereinabove authorized powers and penalties, the suspension and revocation powers conferred in § 57-5-108 upon county legislative bodies and other governmental bodies referred to therein are likewise conferred herein upon the commissioner, as they may relate to persons to whom certificates of registration are issued by the commissioner under § 57-5-102. Such suspension and revocation powers may be invoked for the failure of such person to file any report required by this part, or for the filing of a false or fraudulent report, or for the failure to pay tax due by any such licensee with the intent to defraud under this part and rules and regulations promulgated pursuant thereto and for no other reasons. The remedy provided by § 57-5-108 shall, likewise, be the only method of reviewing orders of the commissioner revoking or suspending such certificates of registration as authorized herein.
  4. In lieu of a corporate surety on the bond required by subsection (a), the commissioner may allow the wholesaler to secure such bond by depositing collateral in the form of a certificate of deposit as accepted and authorized by the banking laws of this state, which has a face value equal to the amount of the bond. Such collateral may be deposited with any authorized state depository designated by the commissioner. Interest on any deposited certificate of deposit shall be payable to the wholesaler who has deposited it as collateral, or to such person as the wholesaler or the certificate may direct.
    1. If a wholesaler has been in continuous operation for three (3) consecutive years and during the preceding six (6) months has paid all taxes payable under this part on or before the twentieth of the month when due, then the wholesaler shall not be required to furnish any indemnity or personal bond required by this section.
    2. Any wholesaler exempted from the bonding requirement of this section who fails to pay any tax payable under this part on or before the twentieth of the month when due, shall, upon such failure, be required to furnish an indemnity or personal bond as provided in this section.

Acts 1953, ch. 76, § 9 (Williams, § 1051.26); Acts 1973, ch. 6, § 4; impl. am. Acts 1978, ch. 934, §§ 7, 36; T.C.A. (orig. ed.), § 57-309; Acts 1980, ch. 885, § 7; 1987, ch. 160, § 1; 1988, ch. 519, § 2; 1988, ch. 526, § 16; 1992, ch. 607, § 2; 1996, ch. 641, § 7.

Compiler's Notes. Acts 1988, ch. 526, § 45 provided that the amendment by that act shall apply to all assessments of penalty made on or after January 1, 1989.

NOTES TO DECISIONS

1. Action on Bond.

In suit by state against estate of surety on bond executed under this section, court held that state's claim was that of a tax and not for debt owed, and that T.C.A. §67-1-1501 was appropriate statute of limitations. In re Estate of Darwin, 503 S.W.2d 511, 1973 Tenn. LEXIS 443 (Tenn. 1973).

57-6-108. Cash sales only to retailers.

In order to effectively collect the tax levied by this part all sales of beer by wholesalers to retailers or any other persons, except sales to duly licensed wholesalers and sales within military installations as set out in §57-6-111, shall be for cash only. The intent of this section is that wholesale sale of beer and delivery and payment therefor shall be a simultaneous transaction, and any maneuver, device or method of extending credit is expressly prohibited.

Acts 1953, ch. 76, § 10 (Williams, § 1051.27); T.C.A. (orig. ed.), § 57-310.

NOTES TO DECISIONS

1. Extension of Credit.

Note executed by retail beer dealer and payable to wholesale beer dealer whereby wholesaler extended credit to retailer was for an illegal consideration and unenforceable as being in violation of this section. Mascari v. Raines, 220 Tenn. 234, 415 S.W.2d 874, 1967 Tenn. LEXIS 403 (1967).

2. Legislative Intent.

The intent of the legislature in passing the Wholesale Beer Tax Act was not only to effectively collect the tax levied but also to regulate and prohibit certain trade practices such as the wholesale sale of beer on credit to retailers or any other persons not excepted by the statute. Mascari v. Raines, 220 Tenn. 234, 415 S.W.2d 874, 1967 Tenn. LEXIS 403 (1967).

57-6-109. Breakage and shortage adjustments only at time of delivery — Quality control.

  1. In order to accurately determine the tax to be paid, no wholesaler shall make any reduction or adjustment for loss due to shortages or damaged or broken containers, except for the actual loss from the time the beer leaves the brewery until it is delivered to the retailer.
    1. Such reductions or adjustments shall not exceed one-half of one percent (0.5%) of the total monthly purchases of each wholesaler, except in cases of fire, storms, acts of God or unavoidable accidents.
    2. Any claims in excess of one-half of one percent (0.5%) must be substantiated by sworn statements of at least two (2) witnesses or persons otherwise familiar with the facts concerning such loss.
    3. Any and all claims for such credits may be disapproved by the department of revenue.
  2. All beer shall be inspected and accepted by the retailer or the retailer's representative at the time of delivery and no adjustment or refund for damage, breakage or shortage shall be made by any wholesaler subsequent to the time of delivery to the retailer. A wholesaler may determine that beer sold to a retailer does not conform to quality control standards. Upon making that determination, the wholesaler may provide the retailer with replacement beer in exchange for the beer that no longer conforms to quality control standards, if the tax paid on the total amount of replacement beer is equal to the tax credit received on the beer being returned by the retailer.
  3. A wholesaler may purchase full case lots of beer previously sold to a retailer by the wholesaler at the price at which the beer was sold to the retailer:
    1. Upon determination by a county or municipality that:
      1. A retailer has surrendered or abandoned its permit to sell beer;
      2. A retailer's permit to sell beer has been revoked; or
      3. A retailer's permit to sell beer has been suspended for more than thirty (30) days; or
    2. When a retailer has in good faith discontinued business for more than thirty (30) days.

Acts 1953, ch. 76, § 11 (Williams, § 1051.28); Acts 1968, ch. 628, § 1; T.C.A. (orig. ed.), § 57-311; Acts 1988, ch. 466, § 2; 1990, ch. 626, § 1.

Attorney General Opinions. Wholesale beer tax and quality control standards determination.  OAG 12-54, 2012 Tenn. AG LEXIS 54 (5/21/12).

57-6-110. Gifts or inducements to retailers — Discounts to consumers.

  1. In order to determine the exact amount of the tax and to facilitate the collection thereof, no wholesaler shall make any gift of beer or any other type of gift to any retailer, nor shall any deal be made with any retailer or any other person whereby the wholesale price of beer shall be reduced below the list price above provided for as inducement to the retailer or any other person to make larger purchases; provided, however, that a manufacturer may offer, by coupons provided by a manufacturer, a discount to the consumer to be redeemed only by the manufacturer. Neither a retailer nor a wholesaler shall participate, either directly or indirectly, in the redemption of such coupons.
  2. A violation of this section is a Class C misdemeanor.

Acts 1953, ch. 76, § 12 (Williams, § 1051.29); T.C.A. (orig. ed.), § 57-312; Acts 1987, ch. 72, § 1; 1989, ch. 591, § 113.

Cross-References. Penalty for Class C misdemeanor, §40-35-111.

57-6-111. Exemption of sales to armed forces installations.

The tax levied herein shall not be applicable to any beer and/or ale sold to any post exchange, ship service store, commissary, open mess, officers' club, N.C.O. club or other organization recognized by and located on any fort, base, camp or post of the armed forces of the United States. Wholesalers and brewers duly licensed in Tennessee shall be relieved of the tax imposed herein on all beer and/or ale sold at any fort, base, camp or post of the armed forces of the United States; provided, that such sales are listed on the monthly reports required herein; and provided further, that a copy of a receipt duly signed by the officer or noncommissioned officer in charge of such clubs, certifying that such beer or ale was sold to and delivered to such clubs at such fort, base, camp or post, is attached to such report.

Acts 1953, ch. 76, § 13 (Williams, § 1051.30); T.C.A. (orig. ed.), § 57-313.

Cross-References. Exemption from state privilege tax, §57-5-208.

57-6-112. Exclusiveness of tax.

Any county or municipality which collects the tax as provided herein shall not be authorized to levy any other sales tax, inspection fee or special tax of any type or kind except the privilege license fee authorized by chapter 5 of this title on the sale of beer either at retail or wholesale.

Acts 1953, ch. 76, § 14 (Williams, § 1051.31); T.C.A. (orig. ed.), § 57-314.

57-6-113. Enforcement of law.

Municipal and county officials are given the authority to and are charged with the responsibility of enforcing this part as well as the department.

Acts 1953, ch. 76, § 15 (Williams, § 1051.32); T.C.A. (orig. ed.), § 57-315.

57-6-114. Criminal penalties.

  1. A violation of this part is a Class C misdemeanor.
  2. It shall be mandatory on the local beer board to suspend the license or permit of the wholesaler for thirty (30) days for violating § 57-6-104, within the city or county where the violation was committed.

Acts 1953, ch. 76, § 16 (Williams, § 1051.33); Acts 1969, ch. 171, § 3; T.C.A. (orig. ed.), § 57-316; Acts 1989, ch. 591, § 113.

Cross-References. Penalty for Class C misdemeanor, §40-35-111.

57-6-115. Damaged or unaccepted goods — Tax liability.

When any common carrier transporting beer to a point within this state, or any insurance company insuring such beer, comes into possession of such beer by virtue of the same being damaged or otherwise unaccepted by the consignee of such beer, such common carrier or insurance company shall become liable for the tax imposed under this part, unless proof deemed satisfactory to the commissioner of revenue is furnished to the commissioner by such carrier or insurer showing that such beer has been destroyed or shipped to a point without this state and, therefore, has not been sold or consumed in this state.

Acts 1971, ch. 150, § 1; T.C.A., § 57-320.

57-6-116. Expenses of enforcement of law limited.

For the purpose of carrying out this part, the commissioner of revenue is authorized to transfer from any funds allocated for the operation of the department, the sum of five thousand dollars ($5,000), which sum shall be repaid out of funds received under this part. In no event shall the department be called upon to render greater services or expend funds in excess of the amount received by the department as provided herein.

Acts 1953, ch. 76, § 17 (Williams, § 1051.34); impl. am. Acts 1959, ch. 9, § 14; T.C.A. (orig. ed.), § 57-317.

57-6-117. Construction of law — Invalidity.

If any clause, sentence, paragraph or section of this part be declared unconstitutional by any court of competent jurisdiction, such determination shall render invalid the remaining part of the part, it being hereby declared to be the legislative intent not to enact the part unless that part so held invalid was included therein.

Acts 1953, ch. 76, § 18 (Williams, § 1051.35); T.C.A. (orig. ed.), § 57-318.

57-6-118. Effect of unconstitutionality of part.

In the event this part is declared unconstitutional, it is declared to be the legislative intent not to have repealed Acts 1951, ch. 37, and such act shall, in that event, be in full force and effect.

Acts 1953, ch. 76, § 19 (Williams, § 1051.36); T.C.A. (orig. ed.), § 57-319.

Part 2 Wholesale Tax on Other Alcoholic Beverages

57-6-201. Tax levy — Enforcement — Disposition of collections.

  1. There is imposed an additional tax upon the sale of alcoholic beverages at wholesale in the amount of fifteen cents (15¢) per case for each case of alcoholic beverages sold at wholesale in Tennessee. The tax imposed herein shall be paid monthly by the wholesaler upon the number of cases of alcoholic beverages sold by the wholesaler during the preceding month to the department, and all of which tax shall be used or spent by the alcoholic beverage commission.
  2. For the purpose of enforcing this part and ascertaining the amount of tax due under this section, it shall be the duty of each wholesaler, on or before the fifteenth day of each month, to file a report with the commissioner upon forms prescribed, prepared and furnished by the commissioner showing information relative to sales and disposition of all alcoholic beverages and such other related information as the commissioner may require.
  3. Every distiller, rectifier, vintner and importer selling distilled spirits or wines to licensed wholesalers in Tennessee shall, at the time such alcoholic beverages are invoiced to the wholesaler, send a duplicate invoice to the commissioner, to which there shall be attached copies of all papers, exhibits, etc., as may be attached to the original invoice.
  4. All moneys collected under this section shall be turned over to the state treasurer for deposit in the general fund, the money to be appropriated for expenditures by the general assembly.

Acts 1959, ch. 278, § 1; 1963, ch. 259, §§ 1, 3; 1970, ch. 371, § 2; 1975, ch. 31, § 1; 1975, ch. 275, § 1; T.C.A., § 57-706; Acts 1980, ch. 885, § 8; 1988, ch. 526, § 17.

Compiler's Notes. Acts 1988, ch. 526, § 45 provided that the amendment by that act shall apply to all assessments of penalty made on or after January 1, 1989.

Law Reviews.

Preferences, Priorities, and Powers of the State in the Collection of Delinquent Revenue: Tennessee's Tax Enforcement Procedures Act (Donald J. Serkin), 8 Mem. St. U.L. Rev. 707.

NOTES TO DECISIONS

1. Constitutionality.

Where Acts 1975, ch. 31 had the single purpose of repealing former pricing statutes on alcoholic beverages and where it also necessarily amended the wholesaler liquor tax provided for in this section, the caption of the act was not unconstitutionally narrower than the body of the act where it stated that it was to repeal former §§ 57-701 — 57-705 relative to price regulations on alcoholic beverages. State ex rel. Blanton v. Durham, 526 S.W.2d 109, 1975 Tenn. LEXIS 592 (Tenn. 1975).

2. Construction with Other Law.

Since this section deals with wholesalers only, it does not preempt T.C.A. §57-3-501 which deals with retailers only. Memphis Retail Liquor Dealers' Asso. v. Memphis, 547 S.W.2d 244, 1977 Tenn. LEXIS 555 (Tenn. 1977).

57-6-202. Audits and investigations — Penalty for noncompliance.

  1. The commissioner shall cause to be made a complete audit of each wholesaler at such time as may be deemed advisable for the collection of the taxes levied in this title.
  2. The commissioner is authorized to examine the books, papers and records of any wholesaler or retailer, subject to this part, for the purpose of enforcing the collection of the tax herein levied. Any refusal to permit the examination of such books, papers and records shall constitute sufficient reason for the revocation or suspension of any license or permit issued pursuant to this part or a refusal to issue the same.

Acts 1959, ch. 278, § 1; 1970, ch. 361, § 3; 1975, ch. 31, § 1; T.C.A., § 57-707; Acts 1983, ch. 476, § 1; 1988, ch. 958, § 2.

Law Reviews.

Preferences, Priorities, and Powers of the State in the Collection of Delinquent Revenue: Tennessee's Tax Enforcement Procedures Act (Donald J. Serkin), 8 Mem. St. U.L. Rev. 707.

Chapter 7 [Reserved]

Chapter 8 [Reserved]

Chapter 9 Disposition

Part 1 General Provisions

57-9-101. Destruction of liquor and paraphernalia.

  1. It is the duty of all sheriffs and deputy sheriffs of the different counties of the state and the police officers of each incorporated city and town to search for, seize and capture all illicit distilleries, stills and worms, distilling and fermenting equipment and apparatus and other paraphernalia connected therewith, or used or to be used in the illicit manufacture of intoxicating liquors; raw materials and substances connected with or to be used in the illicit manufacture of intoxicating liquors; and containers connected with or used in the packaging of illicitly manufactured intoxicating liquors.
  2. It is the duty of such officer or officers to destroy any and all whiskey, beer, or other intoxicants found at or near such distilleries or stills except with respect to intoxicating liquors upon which federal tax has been paid as provided in § 57-9-115.
  3. It is the duty of such officer or officers capturing such distilleries, stills, distilling and fermenting equipment and apparatus and other paraphernalia, to summarily destroy and render useless such property. Any intoxicants or other articles of personal property destroyed under authority of this section shall be destroyed in the presence of at least two (2) credible witnesses. Within five (5) days after such destruction, the officer destroying such intoxicants or other articles shall file a written statement, listing all items destroyed, signed by the officer destroying and the witness or witnesses thereto, with the circuit or criminal court clerk of the county where seized and, in addition, shall file a copy thereof with the alcoholic beverage commission.
  4. The reference to sheriffs and deputy sheriffs in this section shall also include constables in counties of this state having a population of:

    not less than  nor more than

    3,700 4,700

    6,000 7,800

    8,400 8,500

    8,535 8,540

    9,200 9,570

    10,770 10,780

    11,512 11,550

    11,700 11,900

    12,000 13,000

    14,500 14,600

    15,300 15,500

    15,750 16,000

    17,000 17,350

    18,000 18,200

    18,300 18,900

    19,000 19,100

    21,000 21,500

    21,600 22,300

    23,200 23,350

    23,355 23,391

    23,391 23,450

    23,500 23,750

    24,000 24,255

    25,600 27,500

    27,900 28,000

    28,555 28,600

    29,250 31,250

    31,260 33,000

    33,700 34,000

    35,480 41,800

    41,900 50,000

    57,550 59,400

    59,500 60,050

    60,600 62,000

    64,000 65,000

    101,000 118,400

    118,700 200,000

    according to the 1960 federal census or any subsequent federal census, and Fentress County and Hamblen County.

Acts 1919, ch. 20, § 1; Shan. Supp., § 6798a19b18; Code 1932, § 11239; Acts 1969, ch. 160, § 3; 1969, ch. 319, §§ 3, 4; 1970, ch. 456, § 1; 1970, ch. 496, § 1; 1970, ch. 588, §§ 1, 2; 1971, ch. 53, §§ 1-3; 1971, ch. 231, §§ 1, 2; 1972, ch. 584, § 1; 1972, ch. 672, § 1; 1973, ch. 389, § 1; 1974, ch. 631, §§ 1, 2; Private Acts 1976, ch. 242, § 1; Private Acts 1976, ch. 293; Acts 1977, ch. 239, § 5; T.C.A. (orig. ed.), § 57-601; Acts 1982, ch. 881, § 1; 1991, ch. 9, § 8; 1992, ch. 973, § 6; Private Acts 1994, ch. 191, § 4; Acts 1996, ch. 553, § 5; 1996, ch. 753, § 5.

Compiler's Notes. For tables of U.S. decennial populations of Tennessee counties, see Volume 13 and its supplement.

Acts 1996, ch. 753, § 1 abolished the office of constable, effective in any county having a population of not less than thirty-one thousand one hundred (31,100) nor more than thirty-one thousand four hundred (31,400) according to the 1990 federal census or any subsequent federal census, upon adoption of a resolution by July 15, 1996, by a two-thirds (2/3) vote of the county legislative body of such county. The section as set out above reflects the amendment by ch. 753.

Cross-References. Constables, counties in which office abolished, §8-10-101.

Law Reviews.

Preferences, Priorities, and Powers of the State in the Collection of Delinquent Revenue: Tennessee's Tax Enforcement Procedures Act (Donald J. Serkin), 8 Mem. St. U.L. Rev. 707.

57-9-102. Arrest of persons implicated in manufacture.

It shall be the duty of such officer to make arrests of any and all persons implicated, aiding or abetting in the manufacture of intoxicating liquors, and take them before the proper officials and have them tried upon such charge.

Acts 1919, ch. 20, § 3; Shan. Supp., § 6798a19b20; Code 1932, § 11241; T.C.A. (orig. ed.), § 57-603.

57-9-103. Officers to take into possession intoxicating liquors held or transported illegally.

All sheriffs, deputy sheriffs, and police officers of the state are hereby empowered and required to take into possession any intoxicating liquors, including wine, ale, and beer, which have been received by, or are in possession of, or are being transported by, any person in violation of any law of this state; provided, however, that the reference to “sheriffs, deputy sheriffs, and police officers” in this section also includes “constables” in those counties of this state enumerated in §57-9-101.

Acts 1919, ch. 50, § 1; Shan. Supp., § 6798a19b1; Code 1932, § 11224; Acts 1969, ch. 160, § 3; 1969, ch. 319, §§ 3, 4; T.C.A. (orig. ed.), § 57-604.

Textbooks. Tennessee Jurisprudence, 16 Tenn. Juris., Intoxicating Liquors, § 28.

NOTES TO DECISIONS

1. Nature of Statute.

This and the following sections are police measures. Casone v. State, 176 Tenn. 279, 140 S.W.2d 1081, 1939 Tenn. LEXIS 122 (1940).

2. Type of Proceedings.

The proceedings under this and the following sections are in rem and the court will retain jurisdiction of the res until it determines the proper disposition to make thereof. Casone v. State, 176 Tenn. 279, 140 S.W.2d 1081, 1939 Tenn. LEXIS 122 (1940).

3. Effect of Other Statutes.

Chapter 3 did not repeal in toto the provisions of this and the following sections relating to the seizure and holding of intoxicating liquors by the sheriff or other peace officers as that provision only related to the seizure of liquors or vehicles transporting them in violation of chapter 3 and did not cover the whole grounds covered by this and the following sections. Casone v. State, 176 Tenn. 279, 140 S.W.2d 1081, 1939 Tenn. LEXIS 122 (1940).

4. Authority of Sheriff.

Where seizure of intoxicating liquors and truck in which they were contained was under the general authority conferred on the sheriff by this and the following sections and not under the provisions of the revenue statutes of the state, the seizure of the truck was without authority and the court could not direct its holding. Casone v. State, 176 Tenn. 279, 140 S.W.2d 1081, 1939 Tenn. LEXIS 122 (1940).

5. Jury Question.

Where the jury evidently did not believe appellant's evidence as to the reason for taking the six gallons of moonshine from the undercover employee's home, there was no error in overruling appellant's motion for acquittal. United States v. Murphy, 471 F.2d 676, 1972 U.S. App. LEXIS 6830 (6th Cir. Tenn. 1972).

57-9-104. Officers to file written statement about intoxicants taken.

Every such officer so taking into possession any such intoxicating liquors shall, within five (5) days after so doing, file with the circuit or criminal court clerk of the county wherein the same was taken into possession, a written statement showing the kind and quantity of intoxicating liquors so taken, and the name or names of the person from whom the same was taken, if the name of such person be known to such officer.

Acts 1919, ch. 50, § 2; Shan. Supp., § 6798a19b2; Code 1932, § 11225; T.C.A. (orig. ed.), § 57-605.

Textbooks. Tennessee Jurisprudence, 16 Tenn. Juris., Intoxicating Liquors, § 28.

NOTES TO DECISIONS

1. Presumption of Filing Statement.

In absence of contrary averment it will be presumed that the sheriff performed his duty in filing the statement required by this section. Nichols v. State, 181 Tenn. 425, 181 S.W.2d 368, 1944 Tenn. LEXIS 387 (1944).

2. Sufficiency of Indictment.

Indictment for failure to comply with this section should charge that defendants were officers, reference therein to this statute being insufficient to do so, but omission to so charge, not objected to, is cured by verdict of conviction. Mathis v. State, 164 Tenn. 81, 46 S.W.2d 44, 1931 Tenn. LEXIS 15 (1932).

3. Failure to Make Out Statement.

The fact that appellant failed to make out the required written report of confiscated “moonshine” could not have been used as evidence of guilt, but could have been used to prove intent when the appellant took possession of the “moonshine.” United States v. Murphy, 471 F.2d 676, 1972 U.S. App. LEXIS 6830 (6th Cir. Tenn. 1972).

57-9-105. Court having jurisdiction.

In any county having more than one (1) circuit court, or both a circuit court and a criminal court, the court in such county having the jurisdiction of the indictment and trial of offenses against the liquor laws of this state shall have exclusive jurisdiction of all matters relating to the seizure and destruction of intoxicating liquors as provided in this part, and where reference is made to the circuit court or criminal court clerk it shall be deemed to refer to the county clerk of the county having such jurisdiction, and the statements required of the sheriff shall be made to the clerk or the judge of such court.

Acts 1919, ch. 50, § 13; Shan. Supp., § 6798a19b13; Code 1932, § 11236; T.C.A. (orig. ed.), § 57-606.

Textbooks. Tennessee Jurisprudence, 16 Tenn. Juris., Intoxicating Liquors, §§ 26, 28.

Law Reviews.

The Tennessee Court System — Circuit Court (Frederic S. Le Clercq), 8 Mem. St. U.L. Rev. 241.

57-9-106. Delivery of seized liquor to sheriff.

Every officer, other than the sheriff, taking into possession intoxicating liquors as provided for in §57-9-103, shall within five (5) days after so doing, deliver the intoxicating liquors to the sheriff of the county wherein the same was taken into possession, and the sheriff shall execute to the officer a receipt for same in writing showing the kind and quantity of intoxicating liquors so delivered, and the name or names of the person from whom the intoxicating liquors were taken, if such name be known to the officer.

Acts 1919, ch. 50, § 3; Shan. Supp., § 6798a19b3; Code 1932, § 11226; T.C.A. (orig. ed.), § 57-607.

NOTES TO DECISIONS

1. Presumption of Delivery of Liquor.

In absence of contrary averment it will be presumed that the officers delivered the liquor to the sheriff as required by this section. Nichols v. State, 181 Tenn. 425, 181 S.W.2d 368, 1944 Tenn. LEXIS 387 (1944).

2. Officer Retaining Liquor.

Constable who by order of magistrate retained liquor seized under search warrant issued under grounds (2), (3), and (4) of T.C.A. §40-6-102 was not liable under indictment charging him with failing to turn liquor over to sheriff within five days pursuant to this section since it was duty of magistrate to retain the liquor under § 40-513 (repealed). State v. Yearwood, 169 Tenn. 181, 83 S.W.2d 894, 1935 Tenn. LEXIS 28 (1935).

Where appellant seized six gallons of moonshine but did not report it or deliver it to the proper official, there was no merit in contention that the appellant did not know of these requirements. United States v. Murphy, 471 F.2d 676, 1972 U.S. App. LEXIS 6830 (6th Cir. Tenn. 1972).

3. Sufficiency of Indictment.

Indictment for failure to comply with this section should charge that the defendants were officers, reference therein to this statute being insufficient to do so, but omission to so charge, not objected to, is cured by verdict of conviction. Mathis v. State, 164 Tenn. 81, 46 S.W.2d 44, 1931 Tenn. LEXIS 15 (1932).

57-9-107. Sheriff to keep intoxicants until otherwise ordered by court.

The sheriff shall safely keep in possession all intoxicating liquors, either taken by the sheriff as provided in §57-9-103 or delivered to the sheriff as provided in §57-9-106 until ordered to dispose of same by the court as hereinafter provided.

Acts 1919, ch. 50, § 4; Shan. Supp., § 6798a19b4; Code 1932, § 11227; T.C.A. (orig. ed.), § 57-608.

Textbooks. Tennessee Jurisprudence, 16 Tenn. Juris., Intoxicating Liquors, § 28.

NOTES TO DECISIONS

1. Duty of Sheriff.

It is the duty of a sheriff to deliver liquors seized by the sheriff to the department of finance and taxation (now department of revenue) only when the sheriff is acting as agent or representative of that department. Casone v. State, 176 Tenn. 279, 140 S.W.2d 1081, 1939 Tenn. LEXIS 122 (1940).

2. Disposition of Liquor.

Where the sheriff seizes liquor under the authority as a police officer and not as an agent or representative of the commissioner of finance and taxation (now commissioner of revenue) such liquors remain in the sheriff's custody until it is determined by the court whether or not they were legally in the possession of the person from whom they were seized; and if at that time they are found to be contraband goods the court might then properly entertain an application by the commissioner to possess the goods and sell them for the benefit of the treasury. Casone v. State, 176 Tenn. 279, 140 S.W.2d 1081, 1939 Tenn. LEXIS 122 (1940).

57-9-108. Sheriff's statement of intoxicants held.

At each term of the circuit or criminal court, the sheriff shall deliver to the circuit or criminal court judge holding same a written statement showing all intoxicating liquors in the sheriff's possession, setting forth the kind and quantity of same and the name of the person from whom the same have been taken, if such name is known to the sheriff, and where the name of such person is unknown to the sheriff, such statement shall set out the date of the posting of the notice required by §57-9-110.

Acts 1919, ch. 50, § 7; Shan. Supp., § 6798a19b7; Code 1932, § 11230; T.C.A. (orig. ed.), § 57-609.

57-9-109. Notice to owners.

The filing of the statement, set out in §57-9-104, shall be the only notice that is necessary to be given to the person from whom such liquors were taken, where the person resides within the jurisdiction of the court or where the person was arrested at the time of the seizure of such liquors.

Acts 1919, ch. 50, § 5; Shan. Supp., § 6798a19b5; Code 1932, § 11228; T.C.A. (orig. ed.), § 57-610.

57-9-110. Notice when name of owner unknown.

If the name of the person transporting, receiving or possessing intoxicating liquors which have been seized in accordance with this part be unknown to the sheriff or other officer seizing the same, then, in that event, the sheriff or other officer taking possession of the same shall so certify in the statement required to be filed by §57-9-104, and the clerk of such circuit or criminal court shall give notice to whom it may concern by notice posted at the courthouse door of the county within which such liquors were seized, setting forth in substance that such liquors have been seized in accordance with this part, and notifying all persons claiming same to do so within thirty (30) days from the date of the posting of such notice, and that if they fail to do so, they will forfeit all right in and to the same and that condemnation and forfeiture thereof will be in the nature of proceedings in rem.

Acts 1919, ch. 50, § 6; Shan. Supp., § 6798a19b6; Code 1932, § 11229; T.C.A. (orig. ed.), § 57-611.

57-9-111. Claimants of liquor — Petition.

All persons claiming any interest in intoxicating liquors seized in accordance with this part shall do so by petition, which petition shall be filed in the circuit or criminal court of the county in which such liquors were seized, within ten (10) days after the filing of the statement showing the seizure thereof required in §57-9-104; provided, however, that persons for whom advertisement is made by notice as herein required may file such petition within the time set out in such notice. It shall be the duty of the sheriff to ascertain what notices have been posted by the clerk in accordance with this part and make return thereof to the court as hereinbefore provided.

Acts 1919, ch. 50, § 8; Shan. Supp., § 6798a19b8; Code 1932, § 11231; T.C.A. (orig. ed.), § 57-612.

Textbooks. Tennessee Jurisprudence, 16 Tenn. Juris., Intoxicating Liquors, § 28.

Law Reviews.

Constitutional Law — Right to Trial by Jury in a Summary Proceeding, 14 Tenn. L. Rev. 363.

NOTES TO DECISIONS

1. Effect of Other Statutes.

Ch. 5, part 1 of this title, regulating storage and possession of beer, did not repeal this section outlining procedure for recovery of seized beer by owners. Young v. Chumley, 189 Tenn. 322, 225 S.W.2d 77, 1949 Tenn. LEXIS 432 (1949).

2. Time of Filing Petition.

Proceeding by plaintiff to recover possession of whiskey filed after the plaintiff's acquittal on charge of unlawful possession of intoxicating liquor and more than six months after seizure of liquor was not timely. Nichols v. State, 181 Tenn. 425, 181 S.W.2d 368, 1944 Tenn. LEXIS 387 (1944).

3. Repossession of Beer.

This section provided the only remedy available for the repossession of beer seized from one who was charged with the possession of beer for illegal sale. Young v. Chumley, 189 Tenn. 322, 225 S.W.2d 77, 1949 Tenn. LEXIS 432 (1949).

Justice of peace did not have jurisdiction of proceeding to recover beer seized by sheriff. Young v. Chumley, 189 Tenn. 322, 225 S.W.2d 77, 1949 Tenn. LEXIS 432 (1949).

57-9-112. Answer to petition claiming ownership.

It shall be the duty of the district attorney general to investigate and file answer to any petition alleging ownership of or any interest in any intoxicating liquors seized under this part, and to represent the state upon the hearing of such petition.

Acts 1919, ch. 50, § 12; Shan. Supp., § 6798a19b12; Code 1932, § 11235; modified; T.C.A. (orig. ed.), § 57-613.

Law Reviews.

The Tennessee Court Systems — Prosecution, 8 Mem. St. U.L. Rev. 477.

57-9-113. Petition claiming ownership tried in summary manner.

The hearing of such petition shall be had in a summary manner, before the court sitting without a jury.

Acts 1919, ch. 50, § 14; Shan. Supp., § 6798a19b14; mod. Code 1932, § 11237; T.C.A. (orig. ed.), § 57-614.

Law Reviews.

Constitutional Law — Right to Trial by Jury in a Summary Proceeding, 14 Tenn. L. Rev. 363.

NOTES TO DECISIONS

1. “Summary Proceeding” Defined.

A summary proceeding is a form of trial in which the established course of legal proceeding is disregarded, especially in the matter of trial by jury. Caneperi v. State, 169 Tenn. 472, 89 S.W.2d 164, 1935 Tenn. LEXIS 72 (1936).

2. Refusal of Jury Proper.

In view of this section, no constitutionally secured rights were denied by a refusal of a jury in a proceeding for return of liquor seized by sheriff. Caneperi v. State, 169 Tenn. 472, 89 S.W.2d 164, 1935 Tenn. LEXIS 72 (1936).

57-9-114. Determination of claims to liquor.

Where any person claims an interest in any liquor seized in accordance with this part, the court shall hear and determine the question of the right of such person so claiming an interest in such liquors; but no person shall be deemed to have any property right in any intoxicating liquors transported, received, or possessed in violation of the laws of this state; and if the court, upon the hearing of any petition alleging ownership of, or an interest in intoxicating liquors, shall ascertain that the same have been received, transported or possessed in violation of any law of this state, the court shall direct the sale or destruction thereof by the sheriff as set out in §§57-9-11557-9-119.

Acts 1919, ch. 50, § 10; Shan. Supp., § 6798a19b10; Code 1932, § 11233; Acts 1947, ch. 127, § 2; C. Supp. 1950, § 11233; T.C.A. (orig. ed.), § 57-615.

NOTES TO DECISIONS

1. Constitutionality.

The 1947 amendment to this section was constitutional. Petition of Carter, 188 Tenn. 677, 222 S.W.2d 11, 1949 Tenn. LEXIS 389 (1949).

2. Jurisdiction.

Justice of peace did not have jurisdiction of proceeding to recover beer seized by sheriff. Young v. Chumley, 189 Tenn. 322, 225 S.W.2d 77, 1949 Tenn. LEXIS 432 (1949).

3. Trial.

The petitioner in a proceeding for the return of intoxicating liquor seized by a sheriff, as being illegally transported, is not entitled to a jury trial. Caneperi v. State, 169 Tenn. 472, 89 S.W.2d 164, 1935 Tenn. LEXIS 72 (1936).

4. Evidence.

In a proceeding for the return of liquor seized by a sheriff as being illegally transported, it was not error to admit testimony of a witness who knew the persons designated on the packages and their reputations, as against the objection that it was hearsay evidence. Caneperi v. State, 169 Tenn. 472, 89 S.W.2d 164, 1935 Tenn. LEXIS 72 (1936).

5. —Sufficiency.

Where a sheriff seized and held intoxicating liquor on the ground that it was being illegally transported, a finding of the trial court that the liquor in question was being illegally transported will not be disturbed on appeal, in view of evidence of bogus documents to support the claim of interstate shipment, and of markings on packages designating Tennessee bootleggers as assignees, and repudiation of the parties. Caneperi v. State, 169 Tenn. 472, 89 S.W.2d 164, 1935 Tenn. LEXIS 72 (1936).

6. Disposition of Charges Against Persons Transporting Liquor.

Where a sheriff seized and held intoxicating liquor on the ground that it was being illegally transported, the trial judge is not bound by the verdict of not guilty in a prosecution of the persons in charge of the truck containing the liquor. Caneperi v. State, 169 Tenn. 472, 89 S.W.2d 164, 1935 Tenn. LEXIS 72 (1936).

That an indictment for illegal possession of liquor was quashed because of an illegal search and seizure, does not overcome the presumption of illegal possession raised by this section, and is no determination of the legality of the possession. Ambrester v. State, 172 Tenn. 144, 110 S.W.2d 332, 1937 Tenn. LEXIS 63 (1937).

7. Denial of Motion for Return of Beverages.

Since motion of defendant for return of beverages illegally seized, following petition alleging such illegal seizure, under which liquor was suppressed as evidence, was incidental to prosecution under the liquor laws, order denying motion could not be reviewed after dismissal of case, and an independent proceeding was necessary. Homolko v. State, 155 Tenn. 467, 295 S.W. 66, 1926 Tenn. LEXIS 68 (1927).

8. Disposition of Liquor.

Where whiskey which was in the unlawful possession of defendant was seized by the sheriff and where defendant was tried for such possession but the charges were dismissed because of illegality of the search and seizure, defendant was not entitled to the return of the whiskey since to return such whiskey to the defendant would have the effect of making the defendant a criminal. Ambrester v. State, 172 Tenn. 144, 110 S.W.2d 332, 1937 Tenn. LEXIS 63 (1937).

Liquor found to have been received, possessed, or transported in violation of the laws of this state is directed to be destroyed, unless a petition for reclamation is filed by some person claiming to have an interest therein, and if on the hearing it appears that the receipt, possession, or transportation of the liquors was unlawful, destruction is ordered, but if it appears that such receipt, possession, or transportation was lawful, necessarily the act must be construed to mean that the court should direct the restoration of the liquors to the owner. Casone v. State, 176 Tenn. 279, 140 S.W.2d 1081, 1939 Tenn. LEXIS 122 (1940).

57-9-115. Delivery of seized liquor to alcoholic beverage commission — Sale.

  1. Any intoxicating liquors seized in accordance with this part, upon which federal tax has been paid, shall be turned over to the alcoholic beverage commission for public sale by the commissioner of general services as contraband in accordance with part 2 of this chapter.
  2. The commission, at the request of the district attorney general, shall withhold from sale and make available to the court on the day of trial, a sufficient amount of such intoxicating liquor for use as evidence and proof of the offense contained in the indictment of any person under prosecution in connection therewith.
  3. It shall be the duty of the sheriff to notify the commission in writing within ten (10) days after the seizure of such liquors, describing the brands and quantity thereof, and to turn over such liquors to the commission at the time and place designated by the commission.
  4. It shall be the responsibility of the commission to provide transportation and storage for such liquors.
  5. In the event the commission calls upon the sheriff to transport such liquors, all expenses incurred by the sheriff in the transportation of such liquors shall be borne by the commission, and the sheriff shall be allowed the same mileage fee as for transporting prisoners, in addition to the other actual cost of transportation.
  6. All money received from the sale of such liquors shall be deposited in the general fund of the state treasury; provided, that, in the case of all liquor captured or confiscated by a police officer of any incorporated municipality, the funds derived from the sale of such liquor, less ten percent (10%) to be retained by the state for costs of administration, shall be turned over to the municipality served by such police officer; and provided further, that in the case of all liquor captured or confiscated by the sheriff, deputy sheriff or constable of any county, the funds derived from the sale of such liquor, less ten percent (10%) to be retained by the state for costs of administration, shall be turned over to the county served by such sheriff, deputy sheriff or constable.
  7. Each sheriff, deputy sheriff or constable of any county or any police officer of any municipality, who has seized and confiscated any intoxicating liquors, shall make an itemized list of such beverages, showing the quantity, brand, name and size of bottle, and shall deliver a signed copy of the itemized list to the commission at the time the beverages are delivered or turned over to the commission for disposal. The agent or representative of the commission receiving the beverages shall likewise issue a receipt to such officer covering the beverages. A copy of the list of beverages prepared by the officer making the seizure and confiscation shall be delivered by the officer to the county mayor of the county if the seizure be made by a county officer, and a copy shall be furnished the mayor of the municipality if the seizure be made by a municipal officer. The commission likewise shall furnish the county mayor with a copy of the list of beverages which it has received from the particular law enforcement officer.

Acts 1919, ch. 50, § 9; Shan. Supp., § 6798a19b9; Code 1932, § 11232; Acts 1947, ch. 127, § 1; C. Supp. 1950, § 11232; Acts 1955, ch. 347, § 9; impl. am. Acts 1959, ch. 9, §§ 5, 14; Acts 1959, ch. 301, § 2; impl. am. Acts 1961, ch. 97, § 5; Acts 1963, ch. 258, § 1; impl. am. Acts 1972, ch. 543, § 7; impl. am. Acts 1978, ch. 934, §§ 16, 36; modified; T.C.A. (orig. ed.), § 57-616; Acts 2003, ch. 90, § 2.

Compiler's Notes. Acts 2003, ch. 90, § 2, directed the code commission to change all references from “county executive” to “county mayor” and to include all such changes in supplements and replacement volumes for the Tennessee Code Annotated.

Textbooks. Tennessee Jurisprudence, 16 Tenn. Juris., Intoxicating Liquors, §§ 15, 22, 28.

NOTES TO DECISIONS

1. Constitutionality.

Provisions of this section authorizing sale of intoxicating liquor bearing federal stamps seized in dry territory is not unconstitutional on the ground that it discriminated as to federal stamped liquor since it was not such an unreasonable discrimination as to wholly invalidate a strictly police statute. Petition of Carter, 188 Tenn. 677, 222 S.W.2d 11, 1949 Tenn. LEXIS 389 (1949).

Provisions of this section as to sale of liquor seized in dry territory to any lawful retailer of liquor in counties wherein the sale of liquor has been legalized was not unconstitutional on the ground that officers required to carry out sale would be subject to public ridicule and shame. Petition of Carter, 188 Tenn. 677, 222 S.W.2d 11, 1949 Tenn. LEXIS 389 (1949).

Provisions of this section authorizing sale were not unconstitutional on ground that it appropriated property without due process of law. Petition of Carter, 188 Tenn. 677, 222 S.W.2d 11, 1949 Tenn. LEXIS 389 (1949).

2. Evidence.

Where evidence was to the effect that chief of police did not report intoxicating liquors delivered to the chief by police officer until some nine months thereafter, and delivery was under such circumstances that jury would have been justified in finding that such original intoxicating liquors were never delivered to the department (now commission), but that defendant obtained other liquors which the defendant delivered to the department because of the investigation, evidence did not preponderate against verdict of guilty of failing to account for confiscated liquors. Broyles v. State, 207 Tenn. 566, 341 S.W.2d 722, 1960 Tenn. LEXIS 493 (1960).

3. Power of Circuit Court to Return Contraband.

Where the alcoholic beverage commission seized contraband liquor from a defendant charged with illegal possession and the charge was nolle prossed, the court held that a jury verdict of acquittal was not binding on the court or the commission with regard to the disposition of the confiscated liquor, that, under T.C.A. §57-3-411 and related statutes, a circuit court had no authority to order the return of the liquor to the defendant and that the liquor had to be sold as contraband in accordance with T.C.A. §§57-9-20157-9-204. Alcoholic Beverage Com. v. Simmons, 512 S.W.2d 585, 1973 Tenn. Crim. App. LEXIS 225 (Tenn. Crim. App. 1973).

57-9-116. Report of sales.

All sales of liquor made as directed in §§57-9-11557-9-119 shall be reported to the court in writing, stating the amount disposed of, the prices obtained therefor, and such other information as the court may require. If it shall appear that the sheriff has complied with the order of the court directing the sale, then such report shall be approved and entered on the minutes of the court.

Acts 1947, ch. 127, § 1; C. Supp. 1950, § 11232; T.C.A. (orig. ed.), § 57-617.

57-9-117. Disposition of liquor bearing no federal tax stamp — Destruction of spoiled liquor.

Should liquor not having a federal stamp on the bottle or package be captured or taken in possession by officers, then the court shall order such liquor destroyed, or may order it turned over to federal authorities for evidence; and if it should appear that any liquor seized in accordance with this part, though having a federal stamp thereon, is not fit for consumption, the court shall order the same to be destroyed.

Acts 1947, ch. 127, § 1; C. Supp. 1950, § 11232; T.C.A. (orig. ed.), § 57-618.

57-9-118. Sheriff's inventory to facilitate credit to proper jurisdiction.

It shall be the duty of the sheriff to keep separate inventories of liquor that is captured by police officers and liquor captured by other officers, so that the funds derived from the sale thereof may be properly divided between the county and incorporated city, town or municipality.

Acts 1919, ch. 50, § 9; Shan. Supp., § 6798a19b9; Code 1932, § 11232; Acts 1947, ch. 127, § 1; C. Supp. 1950, § 11232; T.C.A. (orig. ed.), § 57-619.

57-9-119. No disposition prior to time for filing claim.

The court shall not order the sale or destruction of any of the liquors seized under this part until the time for filing petitions, alleging ownership thereof or an interest therein, as provided in §57-9-111, shall have elapsed.

Acts 1919, ch. 50, § 9; Shan. Supp., § 6798a19b9; Code 1932, § 11232; Acts 1947, ch. 127, § 1; C. Supp. 1950, § 11232; T.C.A. (orig. ed.), § 57-619.

57-9-120. Possession of liquor is prima facie evidence of unlawful transportation, reception, and possession.

In proceedings under this part, the possession of intoxicating liquors, except by persons expressly authorized to transport, receive, or possess the same under the laws of this state, shall be prima facie evidence that such liquors have been transported, received, or possessed in violation of the laws of this state.

Acts 1919, ch. 50, § 11; Shan. Supp., § 6798a19b11; Code 1932, § 11234; T.C.A. (orig. ed.), § 57-620.

NOTES TO DECISIONS

1. Presumption of Unlawful Possession.

Under a petition to recover possession of intoxicating liquor which has been unlawfully seized, there is a presumption that petitioner's possession was illegal, and petitioner must allege and prove that the petitioner had lawful possession at the time of the seizure. Ambrester v. State, 172 Tenn. 144, 110 S.W.2d 332, 1937 Tenn. LEXIS 63 (1937).

57-9-121. Violation of preceding sections — Penalty.

  1. Any person violating any of the provisions of this part is guilty of a Class C misdemeanor.
  2. Any officer violating the provisions of this part shall also forfeit the office and be ineligible to reappointment or reelection to same for a period of five (5) years.

Acts 1919, ch. 50, § 15; Shan. Supp., § 6798a19b15; Code 1932, § 11238; T.C.A. (orig. ed.), § 57-621; Acts 1989, ch. 591, § 113.

Cross-References. Penalty for Class C misdemeanor, §40-35-111.

NOTES TO DECISIONS

1. Judgment.

Judgment against officers on conviction of failure to report possession of liquor and deliver same to sheriff assessing fine of $250 against one defendant and $100 against another and sentencing both to the county workhouse for 30 days, and that “they be disqualified from holding the same office for five years,” was proper. Mathis v. State, 164 Tenn. 81, 46 S.W.2d 44, 1931 Tenn. LEXIS 15 (1932) (decided under prior law).

2. Application.

Portion of this section providing for forfeiture of office of any officer convicted of violating any of the provisions of this part applied to city police chief. Broyles v. State, 207 Tenn. 566, 341 S.W.2d 722, 1960 Tenn. LEXIS 493 (1960).

Part 2 Unstamped Beverages — Unlicensed Dealers

57-9-201. Beverages owned, possessed or sold by unlicensed persons deemed contraband — Untaxed alcoholic beverages — Seizure and sale — Vehicles subject to confiscation.

  1. All alcoholic beverages of more than five percent (5%) alcohol in excess of five gallons (5 gals.) that are owned or possessed by any person in any county of this state, whether or not such county has authorized the sale or distribution of alcohol within its jurisdiction, without the same having been purchased or obtained from an entity holding a license issued under § 57-3-204, § 57-3-203 or § 57-3-207, or manufactured at an entity holding a license issued under § 57-3-218, are declared to be contraband goods, and the same may be seized by the representative, agent or employee of the commission, or sheriff or deputy sheriffs of any such county, and such goods may be delivered to the alcoholic beverage commission for sale by the commissioner of general services in accordance with §§ 12-2-201 — 12-2-204. The reference to “sheriff or deputy sheriffs” in the preceding sentence also includes “constables” in those counties of this state enumerated in § 57-9-101. All alcoholic beverages, which are sold or stored in wet counties for the purpose of sale by a person who does not hold a state liquor license shall be contraband within the meaning of this part, and subject to seizure as provided herein. No bids shall be received on such contraband beverages except from persons duly licensed by the state to handle alcoholic beverages of more than five percent (5%).
  2. Any vehicle, aircraft or boat not a common carrier which may be used for transportation or storage, either in wet or dry counties, for the purpose of distribution, gift or sale of untaxed alcoholic beverages shall likewise be subject to confiscation and sale in the manner herein provided. Should any untaxed alcoholic beverages be found in any vehicle, aircraft or boat, same shall be prima facie evidence that it was there for gift, sale or distribution.
  3. Vehicles and any other articles of personal property which may be found at a still, still site, or place of storage, which still, still site or place of storage is being used by persons known or unknown who have failed to procure a state liquor license, or have failed to pay the taxes imposed by § 57-3-302 are declared to be contraband goods and shall likewise be subject to confiscation and sale in the manner herein provided; however, before any vehicle declared to be contraband, under this part, is sold as provided herein, a copy of notice of seizure shall be sent by registered mail to the owner and lienholder as of record in the motor vehicle division of the department of revenue. Such notice shall state a general description of the seized vehicle, the reasons for the seizure, the procedure by which recovery of the vehicle may be sought, including the time period in which a claim for recovery must be presented, and the consequences of failing to file within the time period. A copy of the notice shall be filed in the office of the commission and shall be open to the public for inspection.
  4. This section shall be applicable to dry counties in like manner as to wet counties.
  5. In the case of any vehicle, aircraft, or boat not a common carrier seized by any law enforcement officer of any incorporated municipality or of any county and turned over to the commission for confiscation, fifty percent (50%) of the amount received from the sale thereof shall be paid to the municipality or to the county served by such law enforcement officer, as the case may be.
  6. The presence of alcoholic beverages at a still, still site or place of storage in excess of one gallon (1 gal.) without a bill of lading or receipt from a licensed retailer, wholesaler, winery or manufacturer shall create a rebuttable presumption that the taxes imposed by § 57-3-302 have not been paid.

Acts 1941, ch. 119, § 1; C. Supp. 1950, § 6648.24 (Williams, § 6648.26); Acts 1955, ch. 347, § 5; impl. am. Acts 1959, ch. 9, § 14; Acts 1959, ch. 267, § 1; impl. am. Acts 1959, ch. 9, § 5; impl. am. Acts 1959, ch. 303, § 1; impl. am. Acts 1961, ch. 97, § 5; Acts 1963, ch. 258, § 1; 1967, ch. 72, § 1; 1969, ch. 160, § 3; 1969, ch. 319, §§ 3, 4; impl. am. Acts 1972, ch. 543, § 7; Acts 1973, ch. 357, § 1; T.C.A. (orig. ed.), § 57-622; Acts 1992, ch. 608, §§ 13-16; 2009, ch. 434, § 11; 2011, ch. 451, § 8; 2017, ch. 147, § 16.

Compiler's Notes. The commissioner of general services, referred to in this section, was changed to chief procurement officer in §§12-2-20112-2-204 by Acts 2011, ch. 295, § 9(a), effective April 1, 2012.

Cross-References. Certified mail in lieu of registered mail, §1-3-111.

Forfeiture of conveyances used in theft, title 40, ch. 33.

Procedure for seizing contraband property in cases of seizure of alcoholic beverages, §57-9-202.

Textbooks. Tennessee Criminal Practice and Procedure (Raybin), § 18.237.

Tennessee Jurisprudence, 16 Tenn. Juris., Intoxicating Liquors, §§ 22, 23, 26, 28.

Law Reviews.

Forfeitures Under the Tennessee Drug Control Act (Lewis L. Laska), 16 Mem. St. U.L. Rev. 431 (1986).

NOTES TO DECISIONS

1. Purpose.

The provisions of this part in regard to confiscation of vehicles used for transportation of unstamped alcoholic beverages, were enacted as a practical, effective means of preventing and detecting fraudulent use of our highways under the pretense of interstate transportation, and the purpose of the legislature was not to control its distribution in adjoining states. Dye v. McCanless, 185 Tenn. 18, 202 S.W.2d 657, 1947 Tenn. LEXIS 294 (1947).

2. Confiscation of Vehicle.

Forfeiture or confiscation of the vehicle is not automatically accomplished, nor does it necessarily take place at all, but rather the property confiscated is subject to forfeiture “in the manner herein provided.” Wells v. McCanless, 184 Tenn. 293, 198 S.W.2d 641, 1947 Tenn. LEXIS 379 (1947).

A vehicle being used for the transportation of unstamped alcoholic beverages through Tennessee is subject to confiscation notwithstanding the fact that the alcoholic beverages were not for distribution, gift or sale in Tennessee. Dye v. McCanless, 185 Tenn. 18, 202 S.W.2d 657, 1947 Tenn. LEXIS 294 (1947).

Confiscation sale by commissioner could be attacked by owner in suit by owner to replevin car from purchasers at sale since order of sale by commissioner was not a judgment by a court. Brooks v. McCoy, 192 Tenn. 586, 241 S.W.2d 579, 1951 Tenn. LEXIS 305 (1951).

Where person sold unstamped whiskey to officer and officer after arrest of person searched automobile of such person 18½ feet from house, but on another's property, in which the officer found whiskey and confiscated automobile, the search of such automobile was proper. Atkins v. Harris, 202 Tenn. 489, 304 S.W.2d 650, 1957 Tenn. LEXIS 414 (1957).

Where car was found abandoned at side of road after chase, it was proper for the police officers to inspect and search the car, and liquor found in such car could be used as evidence against it. Boyd v. General Motors Acceptance Corp., 205 Tenn. 658, 330 S.W.2d 13, 1959 Tenn. LEXIS 405 (1959).

In order to confiscate a vehicle because it is used for transporting or storing intoxicating liquors in violation of law the conditions of the statute must be strictly complied with. Boyd v. Christy, 206 Tenn. 304, 333 S.W.2d 552, 1960 Tenn. LEXIS 365 (1960).

Subsection (b) of this section does not permit the confiscation of vehicles and other articles merely because found at the place or premises where illegal liquor was stored, but such vehicles and articles of personal property are subject to confiscation only where they are found at such place of illegal storage under circumstances showing that they are being used in furtherance of such illegal operation. Boyd v. Christy, 206 Tenn. 304, 333 S.W.2d 552, 1960 Tenn. LEXIS 365 (1960).

Where no liquor was found in car parked about 50 feet from locked garage in which were found nine 50-gallon barrels of whiskey which could not possibly be hauled or stored in the car, the evidence was insufficient to justify a seizure and confiscation of the car for transporting or storing unstamped alcoholic beverages. Boyd v. Christy, 206 Tenn. 304, 333 S.W.2d 552, 1960 Tenn. LEXIS 365 (1960).

Under this section a car is subject to seizure if unstamped liquor is found therein for the purpose of distribution, gift or sale, and the presence of unstamped liquor is prima facie evidence that it is for gift, sale or distribution, but when evidence is offered that the whiskey was not for distribution, gift or sale, the presumption disappears. MacFarland v. Wofford, 211 Tenn. 309, 364 S.W.2d 914, 1963 Tenn. LEXIS 351 (1963).

3. Power of Circuit Court to Return Contraband.

Where the alcoholic beverage commission seized contraband liquor from a defendant charged with illegal possession and the charge was nolle prossed, the court held that a jury verdict of acquittal was not binding on the court or the commission with regard to the disposition of the confiscated liquor, that, under T.C.A. §57-3-411 and related statutes a circuit court had no authority to order the return of the liquor to the defendant, and that the liquor had to be sold as contraband in accordance with T.C.A. §§57-9-20157-9-204. Alcoholic Beverage Com. v. Simmons, 512 S.W.2d 585, 1973 Tenn. Crim. App. LEXIS 225 (Tenn. Crim. App. 1973).

57-9-202. Procedure for seizing contraband property — Claims — Hearings.

  1. In all cases of seizure of any alcoholic beverages or other property subject to forfeiture under the provisions hereof, the officer or other person making the seizure shall proceed as follows:
    1. The officer or other person shall deliver to the person, if any, found in possession of such property, a receipt showing a general description of the seized goods, the reason for the seizure, the procedure by which recovery of the goods may be sought, including the time period in which a claim for recovery must be presented, and the consequences of failing to file within the time period. If the person found in possession of the seized property is not the sole unencumbered owner of same, the commission shall make a reasonable effort to furnish a copy of the receipt to the owner and/or lienholder. A copy of the receipt shall be filed in the office of the commission and shall be open to the public for inspection;
    2. All such property seized and confiscated under this part may be designated by the director for use by the commission for any period of time or shall be sold at public sale by the commissioner of general services when the same has been turned over to the commissioner by the commission as now authorized by law.
    1. Any person claiming any property so seized as contraband goods may, within fifteen (15) days from the date of receipt of notification of seizure, and after executing a bond for costs with one (1) or more good and solvent sureties in the sum of two hundred fifty dollars ($250), made payable to the state of Tennessee, file with the commission at Nashville a claim in writing, requesting a hearing and stating the person's interest in the articles seized. An indigent person may file a claim in forma pauperis by filing with the claim an affidavit stating that the indigent person is unable to bear the cost of the proceeding.
    2. The commission shall set a date for hearing within fifteen (15) days from the day the claim is filed.
    3. The commission is empowered to subpoena witnesses and compel their attendance at hearings authorized hereunder. All parties to the proceeding, including the person claiming such property, shall have the right to have subpoenas issued by the commission to compel the attendance of all witnesses deemed by such parties to be necessary for a full and complete hearing. All witnesses shall be entitled to the witness fees and mileage provided by law for legal witnesses, which fees and mileage shall be paid as a part of the costs of such proceeding.
  2. At each hearing authorized in subsection (b), the state shall have the burden of proving by a preponderance of the evidence that the seized property was of a nature making its possession illegal or was used in a manner making it subject to forfeiture, under this part, and failure to carry the burden of proof shall operate as a bar to any forfeiture hereunder.
  3. In the event the ruling of the commission is favorable to the claimant, the commission shall deliver to the claimant the alcoholic beverages or property so seized. If the ruling of the commission is adverse to the claimant, the commission shall proceed as to such contraband goods in accordance with the foregoing provisions hereof. The expenses of storage, transportation, etc., shall be adjudged as a part of the cost of the proceeding in such manner as the commission shall fix.
    1. Whenever, in any proceeding under this part, a claim is filed for any vehicle, aircraft or boat seized, as provided in this section, by an owner or other person asserting the interest of the owner, the commissioner shall not allow the claim unless and until the claimant proves that:
      1. The claimant has an interest in such property which the claimant acquired in good faith; and
      2. The claimant had at no time any knowledge or reason to believe that it was being or would be used in the violation of the laws of the United States or of the state of Tennessee relating to liquor.
    2. Whenever, in any proceeding under this section, a claim is filed for any property seized, as provided in this section, by a person who is the holder of a security interest or other claim arising out of a contract or agreement, the commissioner shall not allow the claim unless and until the claimant proves that such claimant has an interest in such property which such claimant acquired in good faith. An interest which is acquired in the ordinary course of business shall be presumed to be in good faith unless the commissioner receives evidence that the holder of the security interest had knowledge, at the time the interest attached, of the intended illegal use of the vehicle or was a co-conspirator in furtherance of the illegal activity. A holder of a security interest which is other than a natural person shall be considered a co-conspirator for purposes of this section, if evidence shows that an officer, employee or agent of the holder acting within the scope of employment is a co-conspirator, and the holder either:
      1. Has actual knowledge of the illegal activities of the officer, employee or agent from an individual other than the officer, employee or agent and fails to take appropriate action; or
      2. The holder has failed to reasonably supervise or monitor the activities of the officer, employee or agent.
    3. In the event the interest of the owner is forfeited as provided in subdivision (e)(1) and the interest of the holder of a security interest is not forfeited as provided in subdivision (e)(2), the commissioner may, at the request of the holder of such interest, return the property to the holder for disposition in accordance with the applicable security agreement or other contract. If the commissioner does not return the property to the holder, the forfeiture shall be subject to the holder's interest.
    4. An owner whose interest is forfeited after being arrested for, or charged with, any felony, shall be ineligible to purchase the property from, or to bid at any sale of the property by, the commissioner or any seizing agency. The owner whose interest is forfeited after being arrested for, or charged with, any felony, shall also be ineligible to redeem the property from, or to bid at any sale of the property by, any holder of a security interest acting pursuant to the agreement contract or title 47, chapter 9.
  4. Pending any proceeding to recover a vehicle, aircraft or boat seized hereunder, the commission may order delivery thereof to any claimant who shall establish the right to immediate possession thereof, and who shall execute, with one (1) or more sureties approved by the commission, and deliver to the commission, a bond in favor of the state of Tennessee for the payment of a sum double the appraised value thereof as of the time of the hearing; and conditioned further that, if the vehicle, aircraft or boat is not returned at the time of hearing, the bond shall stand in lieu of and be forfeited in the same manner as such vehicle, aircraft or boat.
  5. The commission may personally hold such hearings as it may deem proper. In addition thereto, the commission is authorized to designate a hearing officer who may hold such hearings in the place and in the absence of the commission. Such hearing officer shall make findings of fact, conclusions of law, and proposed order based thereon. If the commission concurs, it shall issue the order; or it may, upon review of the record, make such findings, conclusions and issue such order as, in its discretion, the record justifies. At all hearings provided for herein, the commission shall provide a stenographer or court reporter to take a stenographic record of the evidence adduced at such hearing. The claimant or protestant shall be entitled to a copy of the stenographic record, upon application therefor, and upon paying the reasonable cost thereof to be fixed by the commission.

Acts 1941, ch. 119, § 2; 1947, ch. 128, § 1; C. Supp. 1950, § 6648.25 (Williams, § 6648.27); Acts 1955, ch. 347, § 6; impl. am. Acts 1959, ch. 9, §§ 5, 14; Acts 1959, ch. 301, § 3; 1959, ch. 302, § 1; impl. am. Acts 1961, ch. 97, § 5; Acts 1963, ch. 258, § 1; 1967, ch. 368, § 1; 1970, ch. 451, § 3; impl. am. Acts 1972, ch. 543, § 7; Acts 1973, ch. 357, §§ 2-4; T.C.A. (orig. ed.), § 57-623; Acts 1985, ch. 76, § 3; 1990, ch. 1037, §§ 2, 5.

Cross-References. Procedure for confiscation of property in cases of seizure of narcotic drugs or marijuana, §53-11-201.

Procedure for seizing contraband in cases of seizure of tobacco products, §67-4-1021.

Textbooks. Tennessee Jurisprudence, 16 Tenn. Juris., Intoxicating Liquors, §§ 26, 28.

Law Reviews.

An Examination of the Tennessee Law of Administrative Procedure (George Street Boone), 1 Vand. L. Rev. 339.

NOTES TO DECISIONS

1. Construction — Effect of Federal Decisions.

While the holdings of the federal courts are not binding on the state Supreme Court in construing this section, they were strongly persuasive where the federal statute was identical to this statute. Dolen v. State, 181 Tenn. 31, 178 S.W.2d 387, 1944 Tenn. LEXIS 342 (1944).

2. Confiscation — Necessity of Compliance With Prescribed Conditions.

The procedure laid down in this section constitutes the conditions under which the confiscation is accomplished, and the proceeding is conditioned upon compliance with the conditions prescribed. Wells v. McCanless, 184 Tenn. 293, 198 S.W.2d 641, 1947 Tenn. LEXIS 379 (1947).

Seizure of car on charge of use in transporting unstamped liquors did not result in forfeiture where statutory procedure for forfeiture was not followed. Wells v. McCanless, 184 Tenn. 293, 198 S.W.2d 641, 1947 Tenn. LEXIS 379 (1947).

Where the commissioner did not comply with the conditions under which alone the confiscation of the petitioner's automobile could be accomplished, in that the petitioner denied the hearing to which the petitioner was entitled prior to a sale, the confiscation of the automobile did not occur and title remained in the petitioner. Brooks v. McCoy, 192 Tenn. 586, 241 S.W.2d 579, 1951 Tenn. LEXIS 305 (1951).

Where sheriff upon seizure of car containing unstamped liquor, failed to issue receipt for property taken to person found in possession and commissioner failed to advertise property taken, and sheriff turned car over to federal authorities who 64 days later turned the car over to the commissioner, the latter was not entitled to confiscate car since sheriff acted for federal authorities and not as agent of commissioner, and statutory procedure required for confiscation had not been followed. Range Pontiac Sales Co. v. Dickinson, 195 Tenn. 228, 258 S.W.2d 770, 1953 Tenn. LEXIS 327 (1953).

3. —Facts Excusing Failure to Comply With Conditions.

Where arrest of defendant was unlawful due to search of automobile without a warrant but defendant made no objection to testimony by state officers, and testified that the defendant transported whiskey in question at time of seizure and that the defendant owned the car in which whiskey was transported, an order confiscating the property by the commissioner was valid. Dickinson v. Ross, 196 Tenn. 162, 264 S.W.2d 800, 1954 Tenn. LEXIS 358 (1954).

4. —Return on Acquittal.

Where the alcoholic beverage commission seized contraband liquor from a defendant charged with illegal possession and the charge was nolle prossed, the court held that a jury verdict of acquittal was not binding on the court or the commission with regard to the disposition of the confiscated liquor, that under T.C.A. §57-3-411 and related statutes, a circuit court had no authority to return the liquor to the defendant and that the liquor had to be sold as contraband in accordance with T.C.A. §§57-9-20157-9-204. Alcoholic Beverage Com. v. Simmons, 512 S.W.2d 585, 1973 Tenn. Crim. App. LEXIS 225 (Tenn. Crim. App. 1973).

5. Void Sale by Commissioner.

Sale of car by commissioner after denial of hearing to owner of car was void. Brooks v. McCoy, 192 Tenn. 586, 241 S.W.2d 579, 1951 Tenn. LEXIS 305 (1951).

6. Attack on Judgment of Commissioner.

The rules governing collateral attacks on the judgments of courts of general jurisdiction are not applicable to a judgment of the commissioner. Brooks v. McCoy, 192 Tenn. 586, 241 S.W.2d 579, 1951 Tenn. LEXIS 305 (1951).

7. Inquiry by Claimant.

The requirement of this section that a person selling a car or otherwise acquiring a claim against it make the specified inquiry to the designated officials before the seller shall be entitled to recover such car where it is seized under the provisions of the statute is mandatory. Dolen v. State, 181 Tenn. 31, 178 S.W.2d 387, 1944 Tenn. LEXIS 342 (1944); McQueen v. McCanless, 182 Tenn. 453, 187 S.W.2d 630, 1945 Tenn. LEXIS 241 (1945).

Lienors of automobiles confiscated when the drivers were found to be transporting unstamped liquor were not entitled to repossession of the automobiles where they had failed to make the inquiry of the designated officials required by this section. Dolen v. State, 181 Tenn. 31, 178 S.W.2d 387, 1944 Tenn. LEXIS 342 (1944).

Holder of chattel mortgage on truck confiscated because it was being used for transportation of unstamped liquor was not entitled to recover the truck where the holder only made inquiry of constable and did not inquire of sheriff or other principal law enforcement officer. McQueen v. McCanless, 182 Tenn. 453, 187 S.W.2d 630, 1945 Tenn. LEXIS 241 (1945).

It is not necessary that claimant make inquiry at the offices of each of the law enforcement officials listed in the statute since the listing of such officials is disjunctive rather than conjunctive. General Motors Acceptance Corp. v. Atkins, 204 Tenn. 700, 325 S.W.2d 270, 1959 Tenn. LEXIS 329 (1959).

Confiscated automobile was properly restored to purchaser of conditional sales notes and conditional sales contract where purchaser made inquiry of federal alcoholic tax unit and was informed that neither buyer nor her husband had any record of liquor law violations, even though purchaser made no inquiry of other law enforcement agencies listed in the statute. General Motors Acceptance Corp. v. Atkins, 204 Tenn. 700, 325 S.W.2d 270, 1959 Tenn. LEXIS 329 (1959).

Where automobile was purchased in Kentucky under conditional sales contract by Tennessee residents, and Kentucky statute did not require inquiry as to purchaser's reputation for dealing in contraband liquor, this section would not preclude Kentucky finance company from satisfying its lien where automobile was confiscated in Tennessee for violation of Tennessee liquor laws. Boyd v. Interstate Acceptance Corp., 205 Tenn. 458, 326 S.W.2d 911, 1959 Tenn. LEXIS 383 (1959).

Where purchaser of conditional sales contract relied on car dealer's statements as to whether the purchaser of the automobile was engaged in the illicit liquor business but did not make any investigation of its own, such investigation does not comply with the statute. Boyd v. General Motors Acceptance Corp., 205 Tenn. 658, 330 S.W.2d 13, 1959 Tenn. LEXIS 405 (1959).

8. Presumption of Knowledge by Claimant.

Wife of reputed bootlegger, who allowed husband's driver to have key to and unlimited use of car which she sought to recover after seizure, was subject to presumption against her contention that she had no knowledge or reason to believe that her car was being or would be used in violation of the liquor laws. McCanless v. Pearson, 190 Tenn. 123, 228 S.W.2d 84, 1945 Tenn. LEXIS 195 (1945).

9. Reclaiming Confiscated Car.

In proceeding for forfeiture where person seeks return of car the state has the burden of proving the affirmative allegations upon which the right to forfeiture exists, and where such right is not proved it does not matter that the claimant cannot prove the matter required by this section. MacFarland v. Wofford, 211 Tenn. 309, 364 S.W.2d 914, 1963 Tenn. LEXIS 351 (1963).

57-9-203. Review of action of commission — Appeal to supreme court.

  1. The action of the alcoholic beverage commission may be reviewed by petition for common-law writ of certiorari, addressed to the circuit court of Davidson County, which petition shall be filed within ten (10) days from the date the order of the commission is made.
  2. Immediately upon the grant of the writ of certiorari the commission shall cause to be made, certified and forwarded to the court a complete transcript of the proceedings in the cause, which shall contain all the proof submitted before the commission. All defendants named in the petition desiring to make defense shall answer or otherwise plead to the petition within ten (10) days from the date of the filing of the transcript unless the time be extended by the court.
  3. The decision of the commission shall be reviewed by the circuit court solely upon the pleadings and the transcript of the proceedings before the commission, and neither party shall be entitled to introduce any additional evidence in the circuit court. The confiscated goods shall not be sold pending such review, but shall be stored by the commission until the final disposition of the case.
  4. Within the discretion of the commission, the claimant may be awarded possession of the confiscated goods pending the decision of the circuit court under the petition of certiorari; provided, that the claimant shall be required to execute a bond payable to the state of Tennessee in an amount double the value of the property seized, the sureties to be approved by the commission. The condition of the bond shall be that the obligors shall pay to the state, through the commission, the full value of the goods or property seized, unless upon certiorari the decision of the commission shall be reversed and the property awarded to the claimant.
  5. Either party dissatisfied with the judgment or decree of the circuit court may upon giving bond as required in other suits, appeal to the supreme court, and have a reexamination, in that court, of the whole matter of law and fact appearing in the record. When any such appeal is made, the clerk of the circuit court in which such suit was pending shall include as a part of the record the original certified transcript of the proceedings had before the commission. The appeal shall be advanced upon the docket of the supreme court as one of such precedence, and heard as promptly as practicable.

Acts 1941, ch. 119, § 3; 1945, ch. 88, § 1; C. Supp. 1950, § 6648.26 (Williams, § 6648.28); impl. am. Acts 1963, ch. 258, §§ 2, 3; T.C.A. (orig. ed.), § 57-624; Acts 1981, ch. 449, § 2.

Compiler's Notes. This section may be affected by T.R.A.P. 24.

Textbooks. Tennessee Jurisprudence, 16 Tenn. Juris., Intoxicating Liquors, §§ 2, 22, 28.

NOTES TO DECISIONS

1. Application.

Where the commissioner (now commission) illegally delivered possession of an automobile to a third party, the procedure provided by this section afforded no remedy to the petitioner for the recovery of the automobile wrongfully being withheld from him, and procedure provided herein did not have to be followed. Brooks v. McCoy, 192 Tenn. 586, 241 S.W.2d 579, 1951 Tenn. LEXIS 305 (1951).

2. Review.

A writ of certiorari granted under the provisions of this section does not bring up for determination any question except that of whether the commissioner (now commission) exceeded jurisdiction or acted illegally, arbitrarily or fraudulently. Boyd v. General Motors Acceptance Corp., 205 Tenn. 658, 330 S.W.2d 13, 1959 Tenn. LEXIS 405 (1959).

If there is any material evidence to sustain the finding of the hearing officer, and there is no illegal, fraudulent or arbitrary action, then the court must sustain the finding of the hearing officer. Boyd v. General Motors Acceptance Corp., 205 Tenn. 658, 330 S.W.2d 13, 1959 Tenn. LEXIS 405 (1959).

3. Power of Circuit Court to Return Contraband.

Where the commission seized contraband liquor from a defendant charged with illegal possession and the charge was nolle prossed, the court held that a jury verdict of acquittal was not binding on the court or the commission with regard to the disposition of the confiscated liquor, that, under T.C.A. §57-3-411 and related statutes, a circuit court had no authority to return the liquor to the defendant, and that the liquor had to be sold as contraband in accordance with T.C.A. §§57-9-20157-9-204. Alcoholic Beverage Com. v. Simmons, 512 S.W.2d 585, 1973 Tenn. Crim. App. LEXIS 225 (Tenn. Crim. App. 1973).

57-9-204. Forfeiture of unclaimed property — Exclusivity of remedy.

  1. If no claim is interposed, such alcoholic beverages or other property shall be forfeited without further proceedings and the same shall be sold as herein provided.
  2. The above procedure is the sole remedy of any claimant, and no court shall have jurisdiction to interfere therewith by replevin, injunction, supersedeas or in any other manner.

Acts 1941, ch. 119, § 4; C. Supp. 1950, § 6648.27 (Williams, § 6648.29); Acts 1955, ch. 347, § 7; 1959, ch. 302, § 2; T.C.A. (orig. ed.), § 57-625.

Cross-References. Procedure for seizing contraband property in cases of seizure of alcoholic beverages, §57-9-202.

Textbooks. Tennessee Jurisprudence, 16 Tenn. Juris., Intoxicating Liquors, § 28.

NOTES TO DECISIONS

1. Application.

Plainly the prohibition of this section against interference by the courts relates to cases where the liquors or the vehicle have been seized, and no court is to interfere with his jurisdiction in such cases when jurisdiction has attached. Brooks v. McCoy, 192 Tenn. 586, 241 S.W.2d 579, 1951 Tenn. LEXIS 305 (1951).

The sole remedy provision of this section necessarily contemplated only those cases in which the commissioner (now commission) retained possession of the property while right to confiscation was being litigated. Brooks v. McCoy, 192 Tenn. 586, 241 S.W.2d 579, 1951 Tenn. LEXIS 305 (1951).

2. Replevin Against Third Person Illegally in Possession.

When the commissioner (now commission) illegally surrenders possession while the cause is pending a hearing on a claimant's petition, it necessarily follows that a replevin suit by the owner of the car against a third person illegally in possession is not an interference with the jurisdiction of the commissioner as he surrendered jurisdiction by surrendering possession before confiscation was complete, and under these circumstances, the exclusive remedy provisions of this section are not applicable. Brooks v. McCoy, 192 Tenn. 586, 241 S.W.2d 579, 1951 Tenn. LEXIS 305 (1951).

3. Power of Circuit Court to Return Contraband.

Where the commission seized contraband liquor from a defendant charged with illegal possession and the charge was nolle prossed, the court held that a jury verdict of acquittal was not binding on the court or the commission with regard to the disposition of the confiscated liquor, that under T.C.A. §57-3-411 and related statutes, a circuit court had no authority to order the return of the liquor to the defendant, and that the liquor had to be sold as contraband in accordance with T.C.A. §§57-9-20157-9-204. Alcoholic Beverage Com. v. Simmons, 512 S.W.2d 585, 1973 Tenn. Crim. App. LEXIS 225 (Tenn. Crim. App. 1973).

57-9-205. Employment of aides and assistants by commission — Disposition of revenues. —

  1. The commission shall have the authority, by and with the consent of the governor, to employ such aides and assistants that may be deemed necessary in the proper enforcement of this part and the collection of all taxes upon alcoholic beverages containing more than five percent (5%) alcohol, whose compensation shall be approved by the governor and paid out of the funds or receipts collected from taxes on alcoholic beverages; provided, however, that the cost of administering the alcoholic beverage statutes shall not exceed five percent (5%) of the gross amount of the revenues collected from such sources, which expenses shall be deducted before any allocation or distribution is made by the state.
  2. The proceeds of all seizures, confiscations and sales made under this part shall be paid by the commission into the state treasury; provided, that ten percent (10%) of such proceeds shall be set aside as expenses for the administration of this part.
  3. All revenues derived from the sales of contraband goods after deducting the expenses of the enforcement of this part shall be distributed as in the case of other revenues from alcoholic beverages; that is, one-half (½) to the state and one-half (½) to the counties, as provided by § 57-3-306.

Acts 1941, ch. 119, § 5; C. Supp. 1950, § 6648.28 (Williams, § 6648.30); impl. am. Acts 1963, ch. 258, §§ 2, 3; T.C.A. (orig. ed.), § 57-626.

57-9-206. Employees authorized to carry arms — Execution of search warrants.

  1. Any duly authorized representative or employee of the commission, who has been designated by the commission to enforce this part, is authorized and empowered to go armed, or carry a pistol while on active duty engaged in enforcing this part.
  2. Any such duly authorized representative or employee of the commission who has been designated by the commission to enforce this part is authorized and empowered to execute search warrants and do all acts incident thereto, in the same manner as search warrants may be levied by sheriffs and other peace officers.

Acts 1941, ch. 119, § 6; C. Supp. 1950, § 6648.29 (Williams, § 6648.31); impl. am. Acts 1963, ch. 258, §§ 2, 3; T.C.A. (orig. ed.), § 57-627.

Chapter 10 Alcohol-Related Injuries

57-10-101. Proximate cause.

The general assembly hereby finds and declares that the consumption of any alcoholic beverage or beer rather than the furnishing of any alcoholic beverage or beer is the proximate cause of injuries inflicted upon another by an intoxicated person.

Acts 1986, ch. 519, § 1.

Law Reviews.

One Too Many: Sellers, Servers Must Know “How Much Is Too Much” to Avoid Alcohol Related Injuries (Mike Faulk), 43 Tenn. B.J. 12 (2007).

Selected Tennessee Legislation of 1986, 54 Tenn. L. Rev. 457 (1987).

NOTES TO DECISIONS

1. Applicability.

This chapter governing the liability of sellers of alcohol, rather than the duties imposed by criminal statutes, determines the civil liability of the seller. Worley v. Weigel's, Inc., 919 S.W.2d 589, 1996 Tenn. LEXIS 188 (Tenn. 1996), rehearing denied, — S.W.2d —, 1996 Tenn. LEXIS 255 (Tenn. 1996).

Trial court did not err in determining that the minor party guest's sister, who furnished the alcohol, was not at fault as a matter of law pursuant to T.C.A. §57-10-101, which insulated those who “furnish” alcoholic beverages from liability for injuries caused by persons who consume the beverages. Biscan v. Brown, 160 S.W.3d 462, 2005 Tenn. LEXIS 308 (Tenn. 2005).

T.C.A. §§57-10-101 and 102 apply to third parties and do not authorize an action against a seller of an “alcoholic beverage or beer” by or on behalf of the supplied, or “first” party. Since the Tennessee Dram Shop Act (Act) does not address first parties, its enactment leaves the law as to first parties as it existed before the Act's enactment. Montgomery Ex Rel. Montgomery v. Kali Orexi, LLC, 303 S.W.3d 281, 2009 Tenn. App. LEXIS 123 (Tenn. Ct. App. Mar. 27, 2009).

Tennessee Dram Shop Act, T.C.A. §§57-10-101 and 102, applied only to third parties and did not permit the deceased's wife to bring an action against the restaurant on behalf of the deceased, who died after becoming intoxicated at a restaurant. Montgomery Ex Rel. Montgomery v. Kali Orexi, LLC, 303 S.W.3d 281, 2009 Tenn. App. LEXIS 123 (Tenn. Ct. App. Mar. 27, 2009).

Determination that the insurer of a bar was liable under its liquor liability policy for the death of the claimant was appropriate because the allegations were sufficient to given notice that the claimant's wife was claiming that her husband sustained injuries as a result of the selling, serving, or furnishing of any alcoholic beverage. Additionally, the liquor liability policy did not extend only to instances included within the Dram Shop Act (Act), T.C.A. §§57-10-101 to57-10-102 because the policy language contained no reference to the Act; moreover, by failing to defend the lawsuit, the insurer was bound by the finding of liability against the bar. Clark v. Sputniks, LLC, — S.W.3d —, 2011 Tenn. App. LEXIS 278 (Tenn. Ct. App. May 25, 2011), aff'd in part, rev'd in part, Clark v. Sputniks, 368 S.W.3d 431, 2012 Tenn. LEXIS 378 (Tenn. May 30, 2012).

57-10-102. Standard of proof.

Notwithstanding §57-10-101, no judge or jury may pronounce a judgment awarding damages to or on behalf of any party who has suffered personal injury or death against any person who has sold any alcoholic beverage or beer, unless such jury of twelve (12) persons has first ascertained beyond a reasonable doubt that the sale by such person of the alcoholic beverage or beer was the proximate cause of the personal injury or death sustained and that such person:

  1. Sold the alcoholic beverage or beer to a person known to be under the age of twenty-one (21) years and such person caused the personal injury or death as the direct result of the consumption of the alcoholic beverage or beer so sold; or
  2. Sold the alcoholic beverage or beer to a visibly intoxicated person and such person caused the personal injury or death as the direct result of the consumption of the alcoholic beverage or beer so sold.

Acts 1986, ch. 519, § 2; 2009, ch. 492, § 1.

Compiler's Notes. Acts 2009, ch. 492, § 2 provided that the act, which amended §57-10-102(2), shall apply to any cause of action accruing on or after June 23, 2009.

Cross-References. Alcohol abuse prevention, title 33, ch. 10, part 4.

Law Reviews.

One Too Many: Sellers, Servers Must Know “How Much Is Too Much” to Avoid Alcohol Related Injuries (Mike Faulk), 43 Tenn. B.J. 12 (2007).