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 p