Tenn. Comp. R. & Regs. 0100 — Alcoholic Beverage Commission

Chapter 0100-01 Rules for the Sale of Liquor by the Drink

Tenn. Comp. R. & Regs. 0100-01-.01 ADVERTISING

(1) Billboards and Outside Signs.

(a) Alcoholic beverages may be advertised on signs and billboards in cities and counties that have legalized the sale of such beverages under the provisions of T.C.A. § 57-3- 106.

(b) Advertising may bear trademarks, trade slogans, or other distinctive designations associated with a particular brand, while also bearing the name, advertising the establishment, or referring to the services of any licensee. All advertising costs, direct or indirect, must be borne by the on-premises consumption licensee, except as permitted by Rule 0100-06-.03.

(2) Advertising Outside the Licensed Premises Relating to the Availability of Alcoholic Beverages.

(a) Advertising on Radio or Television Stations. The availability of alcoholic beverages may be advertised on radio or television stations in Tennessee subject to the following restrictions:

Restrictions. An advertisement shall not contain:

(i) Any statement that is materially false or misleading.

(ii) Any statement that is disparaging of a competitor’s products.

(iii) Any statement, design, device, or representation which is obscene or indecent.

(iv) Any statement, design, device, or representation of or relating to analysis, standards, or tests, irrespective of falsity, which is likely to mislead the consumer.

(v) Any statement that the product is produced, blended, made, bottled, packed, or sold under, or in accordance with, any authorization, law, or

regulation of any municipality, county, or state, federal or foreign government unless such statement is required or specifically authorized by the laws or regulations of such government; and if a municipal, county, state, or federal permit number is stated, such permit number shall not be accompanied by any additional statement relating thereto.

(b) Statements Inconsistent with Labeling. No advertisement shall contain any statement concerning a brand or lot of alcoholic beverages that is inconsistent with any statement on the labeling thereof.

(c) Curative and Therapeutic Effects. No advertisement shall contain any statement, design, or device representing that the use of alcoholic beverages has curative or therapeutic effects, if such statement is untrue in any particular, or tends to create a misleading impression.

(d) Place of Origin. No advertisement shall represent that the alcoholic beverages were manufactured in, or imported from a place or country other than that of their actual origin, or were produced or processed by one who was not in fact the actual producer or processor.

(e) Flags, Seals, Coats of Arms, Crests, and Other Insignia. No advertisement shall contain any statement, design, devices, or pictorial representation of or relating to, or capable of being construed as relating to the armed forces of the United States, or of the American flag, any state flag, or of any emblem, seal, insignia, or decoration associated with any such flag or the armed forces of the United States; nor shall any advertisement contain any statement, device, design, or pictorial representation of or concerning any flag, seal, coat of arms, crest, or other insignia, likely to falsely lead the consumer to believe that the product has been endorsed, made, used by, produced for, under the supervision of, in accordance with the specifications of the government, organization, family, or individual with whom such flag, seal, coat of arms, crest, or insignia is associated.

(f) Brand and Establishment Advertisement Prohibited. No advertisement relating to the availability of any alcoholic beverages in any licensed premises shall carry any advertising associated with a particular brand of alcoholic beverages if the cost of such advertising is paid by the industry member, except as permitted by Rule 0100-06-.03.

History

Authority: T.C.A. §§ 57-1-209, 57-3-104, and 57-4-201.
Administrative History: Original rule certified June 7, 1974. Amendment filed July 21, 1981; effective October 29, 1981. Amendment filed December 1, 1982, effective January 3, 1983. Amendment by Public Chapter 261; effective July 1, 1983. Amendment filed May 10, 1983; effective August 15, 1983. Amendment filed July 8, 1983; effective October 14, 1983. Amendment repealing and replacing the rule was filed March 10, 2010; effective June 8, 2010. Repeal and new rules filed January 25, 2019; to have become effective April 25, 2019. However, the Government Operations Committee filed a 60-day stay of the effective date of the rules; new effective date June 24, 2019. Amendments filed February 9, 2024; effective May 9, 2024.

Tenn. Comp. R. & Regs. 0100-01-.02 SOLICITATION OF BUSINESS AND SERVICES RESTRICTED

(1) Manufacturer and Importer, Limited to Wholesale Solicitation.

(a) No manufacturer, importer or representative thereof shall solicit orders of alcoholic beverages or wine in any manner from anyone in this state except from those holding wholesale liquor licenses.

(b) No manufacturer, importer, or representative thereof shall perform or provide any service whatsoever for a licensee hereunder, or his employee in this state, whether on or away from the licensed premises. No manufacturer, importer, or representative thereof shall enter the premises of any licensee hereunder, except as a bona fide customer.

(c) No manufacturer, importer, or representative thereof shall give anything of value whatsoever, including but not limited to alcoholic beverages and money, to any Tennessee retail licensee or his employee whether on or away from the retail premises. Furthermore, no manufacturer, importer, or representative thereof may take into any licensed premises hereunder any alcoholic beverages in any quantity.

History

Authority: T.C.A. §§ 57-1-209, 57-3-104, 57-3-202, 57-3-405, and 57-818.
Administrative History: Original rule certified June 7, 1974. Amendment filed September 9, 1983; effective October 11, 1983. Amendment repealing and replacing the rule was filed March 10, 2010; effective June 8, 2010. Repeal and new rules filed January 25, 2019; to have become effective April 25, 2019. However, the Government Operations Committee filed a 60-day stay of the effective date of the rules; new effective date June 24, 2019.

Tenn. Comp. R. & Regs. 0100-01-.03 CONDUCT OF BUSINESS

(1) Business Management Restricted.

(a) Every licensed business must be managed by the holder of the license or a designated manager. The Alcoholic Beverage Commission must be notified in a manner approved by the Commission of any change in management within seven (7) days of the change.

(b) Each on-premises manager, assistant manager, and/or any individual working in such capacity, with duties that directly or indirectly impact the selling and dispensing of alcoholic beverages, must have a valid server permit subject to the provisions of T.C.A. § 57-3-707.

(2) Consumption on Licensed Premises. Except as provided for in 0100-01-.08 below, no licensee shall permit alcoholic or malt beverages to be consumed and/or sold on the licensed premises between the hours of 3:00 a.m. and 8:00 a.m. on Monday through Saturday or between the hours of 3:00 a.m. and 10:00 a.m. on Sunday unless the local jurisdiction has opted out of the expanded hours. If such is the case, then the consumption and/or sale of alcoholic beverages may begin at 12:00 p.m. on Sunday.

(3) Free Access to Licensed Premises Without Warrant. Licensees must provide Tennessee Alcoholic Beverage Commission agents immediate access, without a warrant, to all parts of a licensed premise at all times.

(4) Refusal of Cooperation. Any licensee, licensee’s agent, or licensee’s employee subjects the licensee to suspension or revocation of the liquor-by-the-drink license if they refuse to open or disclose records, refuse to furnish information, or furnish false and/or misleading information to an agent or representative of the Tennessee Alcoholic Beverage Commission.

(5) Licensees Not to Combine. No combination of licensees shall be permitted to purchase merchandise in the name of the licensee and subsequently distribute merchandise which they have purchased in combination with each other to any one of the combination, and no licensee shall be permitted to transfer goods from one to another. If any member of the combination is apprehended violating this regulation, every member shall likewise be guilty of a violation, and it shall also be a violation for the wholesale distributor to furnish merchandise to any combination of licensed dealers.

(6) Licensee Responsible for Law and Order on Licensed Premises. Each licensee will maintain the licensed establishment in a decent, orderly, and respectable manner and in full compliance with federal statutes, Tennessee laws, Commission rules and regulations, and local ordinances and laws in the municipality and/or county where licensed premises are located. Licensees remain responsible for complying with this rule if the licensed owner or operator rents, leases, or otherwise permits another to occupy the licensed premises.

(7) Sanitary and Fire Standards. All licensed premises shall be kept in clean and proper sanitary condition, and in full compliance with the provisions and regulations of all duly authorized health authorities whether state, county, or city.

(8) On-Premises Sale by Bottle Restricted. On-premises licensees are restricted from selling or giving away distilled spirits by the bottle or package. Licensees have the right to sell wine, champagne, or malt beverages by the bottle or container for on-premises consumption. The bottle or container must be opened prior to being served to the consumer, except as specifically provided in T.C.A. § 57-4-203.

(9) On-Premises Employees’ Activities Restricted (“B-Girl” Activity). It is unlawful for any employee or agent of an on-premises licensee to solicit alcoholic beverages for public consumption by the employee or agent. It is further unlawful to dispense or consume any beverage under the pretense that it is an alcoholic beverage for public consumption. Nothing in this section precludes an industry member, its employees, or representatives from promoting products as permitted under Rule 0100-03-.11.

(10) Restriction as to Age of Dispensing Employees. No person under the age of eighteen (18) years shall be permitted to dispense, serve, or sell alcoholic or malt beverages in any establishment licensed under the provisions of T.C.A. §§ 57-4-101, et seq.

(11) Dual Interests Prohibited. Except as provided in Rule 0100-03-.16:

(a) No licensee holding a license issued pursuant to T.C.A. §§ 57-4-101, et seq. and no person owning an interest, financial or otherwise, in a partnership or corporation holding such a license, shall have any interest, directly or indirectly, in any business licensed under the provisions of T.C.A. §§ 57-3-202 or 57-3-203.

(b) No person having any interest, financial or otherwise, directly or indirectly, in any business licensed under the provisions of T.C.A. §§ 57-3-202 or 57-3-203 shall have any interest in any business licensed under T.C.A. §§ 57-4-101, et seq.

(12) Restrictions on License After Surrender or Revocation.

(a) No license will be issued to the spouse, child or children, son-in-law or daughter-in-law, employee, or other person having any interest in the business of a licensee whose license has been revoked, for the privilege of doing business at the same location or in close proximity to the location of the establishment whose license was revoked.

(b) The Commission may refuse to reissue a license to the same person, firm, or corporation whose license has been revoked for one (1) year from the date of said revocation.

(c) The Commission may treat a surrender of a license as a revocation under the restrictions contained in this paragraph.

(13) Licensee Must Surrender License If Business Discontinued. Whenever any licensee discontinues business for any reason, he shall immediately notify the Commission in writing and surrender his license.

(14) Prohibited Practices. No licensee, employee, or agent of a licensee shall give away any sealed package, or any drink, of wine or alcoholic beverages except as permitted by T.C.A. § 57-3-404 and Rules 0100-03-.11 and 0100-06-.03. “Give” for the purpose of this paragraph, shall include:

(a) Offering or delivering any free alcoholic beverage or wine to any person or group of persons;

(b) Offering or delivering unlimited drinks of wine or alcoholic beverages for a fixed price if the actual cost of all ingredients, including the alcohol and all applicable taxes, of the drinks actually served to a customer exceeds the fixed price charged; or (c) Awarding any wine or alcoholic beverages as a prize or free drink or encouraging or conducting any game or contest which involves drinking or uses wine or alcohol as a prize or free drink.

(15) Happy Hour Restrictions. No licensee, employee, or agent of a licensee shall engage in any of the following promotional practices during the period beginning at 10:00 p.m., prevailing time, until the time set by law for closing of such licensed establishments:

(a) Serve two (2) or more drinks or containers of alcoholic beverages to a consumer at one time.

(b) Increase the volume of alcohol contained in any such drink during any calendar week without increasing proportionately the price regularly charged for such drink.

(16) Business Name Change. At least seven (7) calendar days prior to any change in its business name or “d/b/a” name, a licensee must submit the proposed change in writing to the Commission for approval. Upon approval, the Commission will amend the license to reflect the licensee’s new business or “d/b/a” name.

(17) Display of License. Any person, partnership, corporation, or other legal entity holding an onpremise consumption liquor-by-the-drink license issued under Chapter 4 of Title 57 of Tennessee Code Annotated, shall prominently display and post, and keep displayed and posted, in the most conspicuous place in the licensed premises, the license so issued.

(18) Server Permits. On-premises consumption licensees should maintain and have documentation of the hire date for employees that serve or handle alcohol, on-site and available for review. Acceptable documentation includes a dated application for employment or a dated W-4 form. If the licensee does not have acceptable documentation of the date of hire for the employee, then it will be deemed that the employee has worked at the licensed premises longer than sixty-one (61) days.

(19) Seating. All on-premise consumption licensees licensed as a restaurant shall maintain a minimum seating for forty (40) people at tables and all on-premise consumption licensees licensed as a hotel shall maintain a minimum seating for seventy-five (75) people at tables during business hours with the exception of wine-only restaurants as defined at T.C.A. § 57- 4-101(c), or any other statutory exception. Seasonal seating (i.e. outside patio seating) shall count toward total numbers, but not toward the minimum seating requirements at tables.

Seats at bars will be counted toward the minimum number of seats at tables if the bar is at least twenty (20) inches in depth and meals may be served and are regularly served at the bar. Those bars containing less than twenty (20) inches in depth will be looked at on a case by case basis with such factors as the type of menu served, placement of the bar, and whether food is regularly served at that bar.

(20) Minors in Possession of Alcohol. On-premises consumption licensees must ensure that minors do not possess or consume any alcoholic beverage—including malt beverages or beer—on the licensed premises.

(21) Employer Responsible for Employee’s Action.

(a) Licensees are at all times responsible for the conduct of their businesses and are at all times directly responsible for any act or conduct of any employee which is in violation of the state statues, the rules and regulations of the Commission, and/or any local ordinance or federal statute whether the licensee be present at any such time or not.

This section is defined to mean that any unlawful, unauthorized, or prohibited act on the part of a licensee’s agent or employee shall be construed as the act of the employer, and disciplinary actions will proceed as though he were present and had an active part in such unlawful, unauthorized, or prohibited act, and as if having been at the employer’s direction and with his knowledge.

(b) In any disciplinary proceeding, it shall be no defense that an employee or agent of a licensee acted contrary to order, or that a licensee did not personally participate in the violating action or actions. However, disciplinary actions related to sales of alcoholic beverages to minors, intra-industry violations, and trade violations are subject to the provisions of Rule 0100-05-.07, the Responsible Licensee Program.

(22) Application Process for On-Premises Consumption Licenses.

(a) Applications must be submitted in a manner specified by the Commission. The following documents must be submitted in support of an application for license to sell alcoholic beverages for consumption on premises:

Completed application;
Questionnaire for anyone having at least five percent (5%) ownership in the business, for any officers of a corporate applicant, and for any manager, assistant manager, and/or any individual working in such capacity and having duties which directly or indirectly impacts on the selling and dispensing of alcoholic beverages;
Lease agreements, assignments, subleases, and/or deed to property;
Current Certificate of Occupancy;
Inspection by the Tennessee Alcoholic Beverage Commission;
Acknowledgment of the rules and regulations;
Menu;
Price Schedule of Drinks;
List of Officers/Owners/Members/Partners;
Sales & Use Tax Certificate of Registration or equivalent verification issued by the Tennessee Department of Revenue;
Sufficient bond posted with the Department of Revenue;
Application fee;
Business hours;
Current manager(s);
Department of Health issued health inspection or an equivalent document, unless otherwise prohibited by statute; and 16. Any other information that the Tennessee Alcoholic Beverage Commission may request.

(b) In addition, any of the following documents which exist must also be submitted:

Management agreements;
Bill of sale.

History

Authority: T.C.A. §§ 57-1-207; 57-1-209; 57-3-104; 57-3-406; 57-3-704; 57-3-710; 57-4-101; 57-4-102; 57-4-104; 57-4-201; and 57-4-203.
Administrative History: Original rule certified June 7, 1974. Amendment by Public Chapter 261; effective July 1, 1983. Amendment filed May 10, 1983; effective August 15, 1983. Amendment filed July 8, 1983; effective October 11, 1983. Amendment filed November 14, 1983; effective February 13, 1984. Amendment filed January 14, 1986; effective February 13, 1986. Amendment filed June 12, 1988; effective August 5, 1988. Amendment filed December 4, 1996; effective April 30, 1997. Amendment filed December 29, 2000; effective March 14, 2001. Amendment repealing and replacing the rule was filed March 10, 2010; effective June 8, 2010. Amendment filed May 22, 2014; effective August 20, 2014. Amendments filed January 11, 2018; effective April 11, 2018. Repeal and new rules filed January 25, 2019; to have become effective April 25, 2019. However, the Government Operations Committee filed a 60-day stay of the effective date of the rules; new effective date June 24, 2019. Amendments filed February 9, 2024; effective May 9, 2024.

Tenn. Comp. R. & Regs. 0100-01-.04 TRANSFER OF LOCATIONS

(1) The transfer of an on-premises consumption liquor license from one location to another are subject to the following provisions:

(a) The licensee must submit to the Commission prior to the actual move the following documents for approval:

Completed application;
Lease agreements, assignments, subleases, and/or deed to property;
Use and Occupancy permit;
Inspection by the Tennessee Alcoholic Beverage Commission;
Letter of explanation for the request; and 6. Any other information that the Tennessee Alcoholic Beverage Commission may request.

(b) Selling, consuming, and/or otherwise dispensing alcoholic beverages at the new location prior to the approval by the Commission is in violation of T.C.A. § 57-4-203(i).

History

Authority: T.C.A. §§ 57-1-201, 57-1-207, 57-1-209, 57-3-104, 57-3-205, 57-3-212, 57-4-201, and 57-4- 203.
Administrative History: Original rule certified June 7, 1974. Repeal filed September 8, 1983; effective October 11, 1983. Amendment repealing and replacing the rule was filed March 10, 2010; effective June 8, 2010. Repeal and new rules filed January 25, 2019; to have become effective April 25, 2019. However, the Government Operations Committee filed a 60-day stay of the effective date of the rules; new effective date June 24, 2019. Amendments filed February 9, 2024; effective May 9, 2024.

Tenn. Comp. R. & Regs. 0100-01-.05 APPLICATIONS BY PRIVATE CLUBS

(1) Public Notice. Each club, as defined by T.C.A. § 57-4-102, applying for a license to sell alcoholic beverages for on-premises consumption has a duty to place a notice in a newspaper of general circulation in the county or municipality where the club is or will be located indicating the club’s intention to apply for a license with the Tennessee Alcoholic Beverage Commission. The notice is required to contain the information prescribed in subsection (2) below. A copy of the published notice is required to be submitted with the club license application.

(2) Format of Notice. Each private club applicant shall place the following notice in the newspaper as described above:

PRIVATE CLUB LIQUOR LICENSE NOTICE

Take notice that__________________________________________________________ (Name of Club) intends to seek a license from the Tennessee Alcoholic Beverage Commission, 500 James Robertson Parkway; 3rd Floor; Nashville, Tennessee 37243, to sell alcoholic beverages to its members and guests for consumption on the club’s premises at ___________________________________________________. The officers of (Address of Club’s Premises) ________________________________ are: ___________________________________ (Name of Club) _______________________________________________________________________ (Name and Address of Officers)

The club currently has approximately __________________________ regular dues paying members. _______________________________________________________________________ (Name/Address of Person Actually in Charge of Sale of Alcoholic Beverages) will be in actual charge of the sale of alcoholic beverages at the club’s premises and has applied to ______________________________________________________________ (City or County) for a certificate of good moral character.

(3) Change of Manager. Whenever there is a change in person or persons who are in actual charge of the sale of alcoholic beverages by a private club licensee, the licensee must submit to the Alcoholic Beverage Commission a certificate of good moral character for the new person or persons who will be in actual charge of the sale of alcoholic beverages within thirty (30) days of the change. Nothing in this rule should be interpreted to relieve a private club licensee from the obligation to inform the Commission of a change in management as set out in Rule 0100-01-.03(1).

(4) Application Process for New Private Club Licenses.

(a) A complete application includes the contact name and information for club officers that will control the sale of alcohol and must be submitted in a manner specified by the Commission. In addition, the following documents must be submitted in support of an on-premises consumption license application by a private club:

Charter, constitution, and any amendments, if the club is incorporated;
A valid lease, lease assignment, or sublease, and/or deed, or other instrument indicating the club’s ownership and/or right of possession of the physical premises;
A certificate of good moral character, issued by the city or county, for the person(s) in charge of the sale of alcoholic beverages;
Verification that the applicant has complied with 0100-01-.05(2) and 0100-01- .05(3);
Menu;
Price schedule as set forth by the Department of Revenue;
Verification that all alcohol handling employees have TABC issued server permits;
Department of Health issued health inspection, or an equivalent government issued document from an appropriate inspector; and 9. Business hours.

(b) In addition, any of the following documents which exist must be submitted:

Bylaws;
Minutes of membership or board meetings;
Management contract;
Loan or financing agreements;
Past tax returns (2 years);
Resolutions relative to changes in name, purpose, or location of club;
Financial statements;
Written approval of use and occupancy by appropriate local authorities, where applicable.

(c) Applicants should submit any other documents which indicate the club’s compliance with licensing requirements. Such documentation may include items such as announcements of past activities, newsletters sent to members, ledgers reflecting payment of dues in past years and disbursement of funds, IRS recognition as taxexempt non-profit organization, sworn statements regarding the club’s history and activities, etc. The applicant for a license has the burden of proving that it meets the requirement of the law and is, therefore, eligible to hold a license to sell alcoholic beverages. The fact that the applicant submits all the documents listed above does not automatically entitle the applicant to a license. Further, the applicant may be required to submit additional information or documentation if questions arise.

(d) A license for a private club to sell alcoholic beverages on its premises may only be granted by action of the Alcoholic Beverage Commission itself.

(5) License Renewal and Transfer of Location by Private Clubs.

(a) License Renewal. Each license issued is valid for one (1) year from the date of issuance and expires at midnight on the expiration date. Both the issuance date and the expiration date shall be clearly printed on the face of the license. Failure to timely and properly file the material required by this rule shall result in the expiration of the license.

On or before the expiration date of the license, the licensee shall submit an application for license renewal and the appropriate license fee to the nearest office of the Alcoholic Beverage Commission.
Applications for license renewal need not submit material that is required of new applicants by Rule 0100-01-.05(5), unless otherwise requested by the Commission.
All financial records shall be maintained and available for inspection for a minimum of three (3) years.

(b) Transfer of Location. Licenses issued to private clubs may be transferred from one location to another only upon the following conditions:

Written request for approval of such a transfer with adequate explanation for the need of such a transfer.
Submittal of a satisfactory lease or deed to the proposed new location.
Written approval of the use and occupancy of the proposed new space by the appropriate local officials.
Inspection by the Tennessee Alcoholic Beverage Commission.
Submittal of a petition or resolution in favor of such a transfer which reflects that it was adopted by a quorum of the club’s members at a membership meeting held pursuant to the club’s charter and bylaws.
When the proposed transfer is into a new jurisdiction, the club shall publish a new notice in compliance with paragraphs (1) through (3) of this rule and supply copies of that notice along with required sworn statement to the ABC as well as a certificate of good moral character upon the person pursuant to T.C.A. § 57-4- 201(c)(2).
No such transfer shall be approved unless the Commission, in its sole discretion, determines that the licensee continues to meet the requirements of these rules and Chapter 4 of Title 57, T.C.A.

(6) Definitions. For the purpose of this chapter, the following definitions shall be used:

(a) “Non-profit association” shall mean a legal entity which is not-for-profit and has at least the following characteristics:

Financial statements covering the immediately preceding years of the club’s operations. Financial statements shall clearly indicate the amount and source of all club receipts and the amount and purpose of all club disbursements in specific categories consistent with standard accounting practices. In addition, the financial statements must show a balance sheet of the club’s assets and liabilities at the end of the immediately preceding year. Copies of IRS Form W-2 for each employee shall be maintained and made available upon request.
Bylaws or rules of the association which provide membership application procedures. Those bylaws or rules shall provide for (a) at least one (1) week waiting period between application for membership and election to membership and (b) a committee composed of three (3) or more members of the club vested with the authority by charter, bylaws or regulations, to approve, reject, or make recommendations on membership applications.
An association shall have a written guest policy which reasonably limits access to club facilities by guests.

(b) “In existence and operating” shall mean for at least two (2) years prior to the application for a club license, the association shall have had at least an annual meeting of the membership with a quorum present, shall have taken actions toward the performance of their non-profit purposes, and shall have elected a governing body which meets periodically.

(d) “Salary” shall mean a fixed periodical compensation paid for services rendered. No salary may be paid which is based on the amount of liquor or malt beverages sold or on the profits made from such sales.

(e) “Suitable kitchen” shall mean that the kitchen is adequate to prepare regular meals.

Said kitchen shall have sufficient cookware, tableware, and food preparation and storage equipment to actually store, prepare, and serve meals. These facilities shall be inspected and approved by appropriate local zoning and codes inspectors.

(7) Additional Rules for Private Clubs.

(a) Each club shall maintain a complete membership roster. The membership roster shall contain the names of all members, their addresses, and the date on which their dues are to be paid. Private club licensees shall maintain their membership records at the club premises and make them available to representatives of the Alcoholic Beverage Commission during hours when the club is open to its members. Since minimum membership is one hundred (100), failure to have ten (10) members at any annual meeting shall be prima-facie evidence of the non-existence of the association.

(b) All salaries, rents, or management fees paid by a private club to any person or legal entity must be reasonable and proper compensation under the circumstances.

(c) No private club shall dispense alcoholic beverage on the premises of the club to any person other than a bona fide member of the club or a bona fide guest of a member of the club. Alcoholic beverages should not be served in an area to which the general public is admitted. If the club’s bar area is in a separate room from that to which the general public is admitted and admission to the bar is limited to members of the club and their guests, the bar may remain open. If, however, the bar is in the room to which the general public is admitted, no alcoholic beverages are to be served in that room during the time the general public is present.

(d) The Alcoholic Beverage Commission shall determine whether a club exists exclusively for non-profit purposes. No such license shall be issued where the ABC determines that the purpose is to make a profit.

(e) Violation of any of the rules set out herein may, in the judgment of the ABC, result in the suspension or revocation of the club’s license or the imposition of a fine under the rules of the Commission. These rules are in addition to the other rules of the ABC and shall apply to club licensees only.

(f) Whenever membership in the club drops below one hundred (100), the club ceases to have facilities in which to serve its members or guests, or the club discontinues its operations, it shall surrender its license immediately.

(g) No private club licensed by the Commission shall utilize any name other than the name approved by the Commission and appearing on the club’s license. Use of a d/b/a name is prohibited.

History

Authority: T.C.A. §§ 57-1-209, 57-3-104, 57-4-102, and 57-4-201.
Administrative History: Original rule filed July 29, 1980; effective October 29, 1980. Amendment filed April 26, 1984; effective May 26, 1984. Amendment filed August 20, 1985; effective November 14, 1985. Amendment repealing and replacing the rule was filed March 10, 2010; effective June 8, 2010. Repeal and new rules filed January 25, 2019; to have become effective April 25, 2019. However, the Government Operations Committee filed a 60-day stay of the effective date of the rules; new effective date June 24, 2019. Amendments filed February 9, 2024; effective May 9, 2024.

Tenn. Comp. R. & Regs. 0100-01-.06 ADDITIONAL RULES APPLICABLE TO CATERERS

(1) Commission licensed caterers shall have available for inspection at catered events involving the sale or dispersion of alcoholic beverages by that caterer, its catering license or a copy as issued by the Commission.

(2) Only employees of a licensed caterer who are in possession of a valid server’s permit may serve alcoholic beverages at any event, whether at the caterer’s designated premises or a remote venue.

(3) Commission licensed caterers may only sell alcoholic beverages on a by-the-drink basis, collecting appropriate taxes, and only in cities, municipalities, and/or counties where such sales are authorized.

(4) Commission licensed caterers may provide alcohol if there are some food items present and available for consumption that was prepared by the licensed caterer in the licensee’s commercial kitchen or in a kitchen where the event will be held. New catering applicants are required to have a commercial kitchen, which must include a fix ed stove or cooktop, an oven, a refrigerator, a freezer, a sink, and counter space necessary to prepare food for commercial purposes.

(5) Commission licensed caterers must submit electronic notice of any catered event involving the sale or distribution of alcohol at least two (2) calendar days prior to the event during state business hours, prevailing time. Such notice should include the date, address, host, and time of the event. The Commission will confirm receipt of the notification.

(6) If a Commission licensed caterer is providing and selling the alcohol at a catered event, then all proceeds generated from the sale of alcoholic beverages at the catered event shall be deposited into the caterer’s monetary account(s). No third party shall receive any proceeds from the sale of alcoholic beverages at a catered event.

(7) Alcohol may be transported by the caterer to the premises of the catered event no earlier than 8:00 am. At the conclusion of the catered event, all alcohol must be removed from the premises no later than 12:00 p.m. of the following day. No one other than the licensed caterer or its employees may serve, sell, or otherwise dispense, and/or have access to any alcohol on the premises of the catered event.

(8) During the duration of the catered event, the licensed caterer is responsible and liable for full compliance with all laws of Tennessee, Commission rules and regulations, federal statutes, and ordinances and laws of the municipality and/or county where licensed premises are located at all times.

History

Authority: T.C.A. §§ 57-1-209, 57-4-102, 57-4-115, and 57-4-201.
Administrative History: Original rule filed March 10, 2010; effective June 8, 2010. Repeal and new rules filed January 25, 2019; to have become effective April 25, 2019. However, the Government Operations Committee filed a 60-day stay of the effective date of the rules; new effective date June 24, 2019. Amendments filed February 9, 2024; effective May 9, 2024.

Tenn. Comp. R. & Regs. 0100-01-.07 APPLICATIONS FOR SPECIAL OCCASION PERMITS

(1) Special Occasion Permits are a one-day (1) permit allowing the sale, service, and/or otherwise dispensing of alcoholic beverages at designated areas by qualified entities. Special Occasion Permits are required if an entity does not otherwise hold an on-premises consumption liquor license, and/or if the entity is selling, serving, or otherwise dispensing alcoholic beverages to invited guests or the public. Special Occasion permittees are subject to the laws and rules governing the sale and service of alcoholic beverages.

(2) To obtain a Special Occasion Permit, the following documents must be submitted to the Commission at least two (2) calendar weeks prior to the date of the event:

(a) A complete application submitted in a manner specified by the Commission;

(b) Certification of recognition of 501(c) status from the IRS, and/or financial records for two (2) years preceding the date of the application indicating that at least sixty percent (60%) of the gross revenues have been used exclusively for religious, educational, or charitable purposes;

(c) If the applicant is a bona fide political organization, then the applicant will submit documentation that it is either a political campaign committee as defined at T.C.A. § 2- 10-102(a) or that it is a political party as defined at T.C.A. § 2-13-101;

(d) Proof that the applicant is registered with the Secretary of State’s Office as a charitable, non-profit organization;

(e) Application fee;

(f) Letter of permission from the owner of the property where the event will be held granting permission to the applicant to sell or serve alcoholic beverages on its premises; and (g) Any other documentation that the Commission may request.

(3) All proceeds generated from the sale of alcoholic beverages pursuant to the Special Occasion Permit must be deposited into the Special Occasion permittee’s monetary account(s).

History

Authority: T.C.A. §§ 57-1-209, 57-3-104, 57-4-101, 57-4-102 and 57-4-201.
Administrative History: Original rule filed March 10, 2010; effective June 8, 2010. Repeal and new rules filed January 25, 2019; to have become effective April 25, 2019. However, the Government Operations Committee filed a 60-day stay of the effective date of the rules; new effective date June 24, 2019. Amendments filed February 9, 2024; effective May 9, 2024.

Tenn. Comp. R. & Regs. 0100-01-.08 TERMINAL BUILDING OF A COMMERCIAL AIR CARRIER

(1) Hours of Sale. Notwithstanding subsection 0100-01-.03(2), any establishment that holds a license as a terminal building of a commercial air carrier airport under Tenn. Code Ann. § 57- 4-102(36), any establishment that holds a license as a commercial airline travel club under Tenn. Code Ann. § 57-4-102(10), or a concessionaire that holds a liquor-by-the-drink license and is located in a terminal building of a commercial air carrier airport, shall be permitted to allow alcoholic or malt beverages to be consumed and/or sold on the licensed premises during the hours that the terminal building of the commercial carrier airport is open to the public, unless the local jurisdiction has opted out of these expanded hours.

(2) Privilege Tax. Establishment, as the term is used in Tenn. Code Ann. § 57-4-301(b)(1)(L), shall mean the license holder. Only one license fee or privilege tax shall be due from each holder of a license for a terminal building of a commercial air carrier airport, regardless of the number of points of sale the entity may operate under the license.

(3) Establishment.

(a) A terminal building of a commercial air carrier airport license may be issued either to the entity having contractual, jurisdictional or other such authority to operate the airport, or, in the entity’s discretion, to another entity or entities as are contractually authorized to operate within the airport. All such entities shall be considered an establishment for purposes of Tenn. Code Ann. § 57-4-301(b)(1)(L) and shall file an addendum with each renewal application identifying each point of sale within the airport.

(b) The holder of a license for a terminal building of a commercial air carrier airport may contractually authorize a separate entity to operate under the terminal building of a commercial air carrier airport license, and such contractually authorized entity shall not be required to obtain its own license; provided that prior notice and disclosures shall be given to the commission, on such forms or in such manner as may be prescribed by the commission. The license holder shall ultimately be responsible for any violation or sanction issued by the commission.

(4) Enforcement. The commission may, in its discretion, treat each point of sale at the terminal building of a commercial air carrier separately for enforcement purposes.

History

Authority: T.C.A. §§ 57-3-204(i), 57-4-101, 57-4-102, 57-4-201, 57-4-203, and 57-4-301.
Administrative History: Original rule filed January 11, 2018; effective April 11, 2018. Repeal and new rules filed January 25, 2019; to have become effective April 25, 2019. However, the Government Operations Committee filed a 60-day stay of the effective date of the rules; new effective date June 24, 2019.

Tenn. Comp. R. & Regs. 0100-01-.09 RENEWAL APPLICATIONS FOR ON-PREMISES CONSUMPTION LICENSES

(1) Renewal applications must be submitted in a manner specified by the Commission, in which the licensee acknowledges and accepts the Tennessee Alcoholic Beverage Commission rules and regulations. Renewal applicants are required to submit the renewal fee at the time of application. The renewal process is complete when the Tennessee Alcoholic Beverage Commission issues an updated license that is valid for one (1) year from the prior license expiration date.

History

Authority: T.C.A. §§ 57-3-213 and 57-4-201.
Administrative History: New rule filed February 9, 2024; effective May 9, 2024.

Chapter 0100-02 Revenue Rules for Sale of Alcoholic Beverage for Consumption on Premises

Tenn. Comp. R. & Regs. 0100-02 Revenue Rules for Sale of Alcoholic Beverage for Consumption on Premises

RULES

OF ALCOHOLIC BEVERAGE COMMISSION

SALES OF ALCOHOLIC BEVERAGES FOR CONSUMPTION ON PREMISES

For reasons of convenience and propriety, rules in this chapter have been transferred to the rules of the department of revenue. They can now be found as chapter 1320-4-2, entitled sales of alcoholic beverages for consumption on the premises. The substance or effectiveness of the rules has not been affected. -- 1 of 1 --

Chapter 0100-03 Local Option Liquor Rules

Tenn. Comp. R. & Regs. 0100-03-.01 ADVERTISING OF ALCOHOLIC BEVERAGES GENERALLY

(1) Statements Prohibited in Advertisements of Alcoholic Beverages.

(a) Restrictions. An advertisement shall not contain:

Any statement that is materially false or misleading.
Any statement that is disparaging of a competitor’s products.
Any statement, design, device, or representation which is obscene or indecent.
Any statement, design, device, or representation of or relating to analysis, standards, or tests, irrespective of falsity, which is likely to mislead the consumer.
Any statement, design, device, or representation of or relating to any guaranty, irrespective of falsity, which is likely to mislead the consumer.
Any statement that the product is produced, blended, made, bottled, packed, or sold under, or in accordance with, any authorization, law, or regulation of any municipality, county, or state, federal or foreign government unless such statement is required or specifically authorized by the laws or regulations of such government; and if a municipal, county, state, or federal permit number is stated, such permit number shall not be accompanied by any additional statement relating thereto.

(e) Flags, Seals, Coats of Arms, Crests, and Other Insignia. No advertisement shall contain:

Any statement, design, devices, or pictorial representation of or relating to, or capable of being construed as relating to the armed forces of the United States, or of the American flag, any state flag, or of any emblem, seal, insignia, or decoration associated with any such flag or the armed forces of the United States if including such statement, design, devices, or pictorial representation is likely to falsely lead the consumer to believe that the product has been endorsed, made, used by, produced for, under the supervision of, or in accordance with the specifications of the government or armed forces; or 2. Any statement, device, design, or pictorial representation of or concerning any flag, seal, coat of arms, crest, or other insignia, if including such flag, emblem, seal, coat of arms, crest, insignia, or decoration is likely to falsely lead the consumer to believe that the product has been endorsed, made, used by, produced for, under the supervision of, or in accordance with the specifications of the government, organization, family, or individual with whom such flag, seal, coat of arms, crest, or insignia is associated.

(2) Prior Approval. Advertisements conforming to the foregoing provisions need not have prior approval of the Commission before publication.

(3) Advertising by Licensees and Permittees.

(a) Advertising by any licensee or permittee shall be allowed on the internet, or any other computer-accessed communication; however, such advertisement shall be subject to

Rule 0100-03-.01 and Rule 0100-03-.03.

(b) Any licensee or permittee under Title 57 of Tennessee Code Annotated may develop email or other computer-access communication mailing lists, and may respond by electronic mail or other computerized communication (including, but not limited to, mobile devices and electronic communications via social media) to any party making inquiry by providing information regarding alcoholic beverages or any other products or services which may be sold or provided in accordance with laws, rules, and regulations of the State of Tennessee.

(c) Manufacturers, importers, non-resident sellers, non-manufacturer non-resident sellers, wholesalers, or any representative thereof, may place posts or messages on social media to identify to consumers the retail locations where the industry member’s product may be purchased at retail in the manner specified in Rule 0100-06-.03(4).

(d) Licensees and permittees engaged in internet advertising shall not directly or indirectly falsely identify themselves in any advertising or in domain addresses.

History

Authority: T.C.A. §§ 57-1-203, 57-3-104, 57-4-201, and 57-818.
Administrative History: Original rule certified June 7, 1974. Amendment by Public Chapter 261; effective July 1, 1983. Amendment filed October 1, 1998; effective December 15, 1998. Repeal and new rules filed March 10, 2010; effective June 8, 2010. Repeal and new rules filed January 25, 2019; to have become effective April 25, 2019. However, the Government Operations Committee filed a 60-day stay of the effective date of the rules; new effective date June 24, 2019.

Tenn. Comp. R. & Regs. 0100-03-.02 RESERVED

History

Authority: T.C.A. § 57-1-209.
Administrative History: Original rule certified June 7, 1974. Amendment by Public Chapter 261, effective July 1, 1983. Repeal and new rules filed March 10, 2010; effective June 8, 2010. Repeal and new rules filed January 25, 2019; to have become effective April 25, 2019. However, the Government Operations Committee filed a 60-day stay of the effective date of the rules; new effective date June 24, 2019.

Tenn. Comp. R. & Regs. 0100-03-.03 ADVERTISING OF ALCOHOLIC BEVERAGES AND WINE BY DIRECT

COMMUNICATIONS.

(1) Brands. Manufacturers, importers, non-resident sellers, non-manufacturer non-resident sellers, and Tennessee licensed wholesalers of or any representative thereof whose brands have been approved for distribution in Tennessee may advertise brands directly to consumers by mail and/or e-mail, internet, or any other computer-accessed communication (including, but not limited to, mobile devices and communications via social media); provided, however, measures are taken to prevent such communications from targeting individuals under the age of twenty-one (21).

(2) Restrictions. Direct communications advertising must conform substantially, where applicable, with the provisions of Rule 0100-03-.01 and in addition must not contain the name, address, or telephone number of any Tennessee-licensed wholesaler, retail food store, or retailer, other than the individual wholesaler, retail food store, or retailer that is directly responsible for sending the direct communication, and this extends to the return address on the envelope.

(3) Retailer Advertising. Subject to the restrictions of paragraphs (2) and (4) of this rule, a retailer licensed under T.C.A. § 57-3-204 may advertise any and all services and products the retailer is authorized to sell or provide under Title 57 of Tennessee Code Annotated or any rules and regulations adopted by the Commission in accordance therewith.

(4) Restrictions on Direct Communications.

(a) A retail package store or retail food store may send a communication directly to a consumer unless a consumer has made a request to the licensee to not receive such communication in writing or via e-mail.

(b) No manufacturers, importers, non-resident sellers, non-manufacturer non-resident sellers, and Tennessee licensed wholesalers of alcoholic beverages may subsidize, contribute, or otherwise compensate a retailer, wholesaler, or retail food store for any direct communication advertising or otherwise assist, directly or indirectly, with the cost or preparation of any direct communication advertisement.

(c) A retailer shall not be deemed to be in violation of this section unless it can be established that a consumer has made a request to be removed from the mailing, email list, or other direct communication and such consumer continued to receive such communications after fourteen (14) days following such a request.

(d) For any direct communications, measures must be taken to prevent such communications from targeting individuals under the age of twenty-one (21). Any direct communications must afford the consumer the ability to opt out of the communications.

(e) Each violation of this rule may result in suspension or revocation of a license or a fine not to exceed the statutory maximum.

History

Authority: T.C.A. §§ 57-1-209, 57-3-104, 57-3-104(c)(4), and 57-4-201.
Administrative History: Original rule certified June 7, 1974. Amendment filed October 29, 1984; effective November 28, 1984. Amendment filed August 15, 1997; effective December 29, 1997. Amendment filed August 18, 1998; effective December 29, 1998. Repeal and new rules filed March 10, 2010; effective June 8, 2010. Repeal and new rules filed January 25, 2019; to have become effective April 25, 2019. However, the Government Operations Committee filed a 60-day stay of the effective date of the rules; new effective date June 24, 2019.

Tenn. Comp. R. & Regs. 0100-03-.04 RESERVED

History

Authority: T.C.A. §§ 57-1-209, 57-3-104(c)(4), and 57-3-104(c)(9).
Administrative History: Original rule certified June 7, 1974. Amendment by Public Chapter 261; effective July 1, 1983. Amendment filed May 10, 1983; effective August 15, 1983. Amendment filed December 17, 1991; effective January 31, 1992. Amendment filed August 23, 1993; effective December 17, 1993. Amended by Public Chapter 957, Acts of 1994 effective May 10, 1994. (See Attorney General opinion No. 094-080). Amendment filed August 15, 1997; effective December 29, 1997. Repeal and new rules filed March 10, 2010; effective June 8, 2010. Repeal and new rules filed January 25, 2019; to have become effective April 25, 2019. However, the Government Operations Committee filed a 60-day stay of the effective date of the rules; new effective date June 24, 2019.

Tenn. Comp. R. & Regs. 0100-03-.05 ADVERTISING ALCOHOLIC BEVERAGES ON BILLBOARDS AND OUTSIDE SIGNS

(1) Limited to Local Option Counties. Alcoholic beverages may be advertised on signs and billboards only in those counties which have legalized the off-premise or on-premise retail sale of such beverages under the provisions of T.C.A. § 57-3-106.

(2) Restrictions on Billboard and Outside Sign Advertising.

(a) No such sign or billboard shall contain the statements prohibited by Rule 0100-03- .01(1).

(b) No such sign or billboard which bears a trademark, trade name, trade slogan, or a facsimile of a product, container, or display associated with a particular brand shall also bear the name or advertise the establishment or refer to the services of any wholesale or retail licensee of this state.

(c) No manufacturer, importer, non-resident seller, non-manufacturer non-resident seller, wholesaler, or representative thereof, may directly or indirectly give, loan, or supply any retail licensee a sign of any nature bearing the name of the retail establishment or referring to its services in any manner, nor shall they cause such signs to be painted on exterior walls of the retail premises.

(d) Signs advertising brands painted on the exterior walls of a retail licensee’s establishment and paid for directly or indirectly by a manufacturer, importer, wholesaler, or representative thereof are permitted.

(e) No manufacturer, importer, non-resident seller, non-manufacturer non-resident seller, wholesaler, or representative thereof, shall directly or indirectly (through a sign company or advertising agency) pay, credit, or otherwise offer inducement of any nature to a retail licensee for the display of any sign or billboard or for the use of space involved therein, nor shall they reimburse the retailer for any expense incidental thereto. A billboard or other structure for which a retail licensee is paid a rental or offered any inducement may not be used for advertising alcoholic beverages.

(3) Local Control. Signs and billboards approved herein are subject to reasonable rules and regulations duly adopted by proper governing bodies in the county and city wherein located.

History

Authority: T.C.A. §§ 57-111, 57-1-209, 57-3-104, 57-3-106, 57-4-201, and 57-818.
Administrative History: Original rule certified June 7, 1974. Amendment by Public Chapter 261; effective July 1, 1983. Amendment filed May 10, 1983; effective August 15, 1983. Repeal and new rules filed March 10, 2010; effective June 8, 2010. Repeal and new rules filed January 25, 2019; to have become effective April 25, 2019. However, the Government Operations Committee filed a 60-day stay of the effective date of the rules; new effective date June 24, 2019.

Tenn. Comp. R. & Regs. 0100-03-.06 ADVERTISING MATERIALS WITHIN RETAIL PREMISES

(1) Who May Supply and Install. Subject to the provisions of Rule 0100-06-.03, manufacturers, importers, non-resident sellers, and non-manufacturer non-resident sellers, or any representative thereof may give, rent, loan or sell to Tennessee licensed wholesalers, but to no other person, signs, posters, placards, decorations, employee clothing, devices, statuettes or geographic displays—printed, painted or electric—for point-of-sale brand advertising, provided such items include branding or advertising of products or brands directly controlled by the manufacturers, importers, non-resident sellers, non-manufacturer non-resident sellers, providing such items. Wholesalers may install or set up such materials in the windows or elsewhere in the interior of a retail establishment. Retailers may not give, rent, loan, or sell such material referenced above to a consumer.

(2) Restrictions on Advertising Within a Retail Premises.

(a) All advertising materials provided under paragraph (1) of this rule must conform to Rule 0100-03-.01(1) with the only exception being that such material may contain specific prices and statements of pecuniary appeal.

(b) All such material must have the primary value to the retailer of brand advertising only.

Brand advertisements must be an integral and not easily separable part of any material that has a secondary or utility value (such as change mats, calendars, thermometers, ash trays, lamps, bottle racks, etc.).

(3) Prohibitions.

(a) The practice of painting the interior of retail licensed premises under the guise of advertising is prohibited. Decorating with crepe paper, “Corabuff” matting, or similar material as a background or setting for advertising material only is permitted but such decoration is limited to a twenty (20) square foot area, per manufacturer, importer, nonresident seller, non-manufacturer non-resident seller, wholesaler, or representative thereof.

(b) Except as permitted by the provisions of Rule 0100-06-.03, no manufacturer, importer, non-resident seller, non-manufacturer non-resident seller, wholesaler, or representative thereof, shall give, rent, loan, or sell a retail license any fixtures, furnishings, or equipment of a permanent nature under the guise of advertising except as permitted by

Rule 0100-06-.01, et seq.

(c) No manufacturer, importer, non-resident seller, non-manufacturer non-resident seller, wholesaler, or representative thereof, shall directly or indirectly through an agent pay, credit, or otherwise offer any inducement whatsoever to the retailer for displaying such materials as authorized herein for any expenses incidental thereto.

History

Authority: T.C.A. §§ 57-1-209, 57-3-104, 57-4-201, and 57-818.
Administrative History: Original rule certified June 7, 1974. Amendment filed December 1, 1980; effective March 31, 1981. Amendment by Public Chapter 261; effective July 1, 1983. Amendment filed May 10, 1983; effective August 15, 1983. Amendment filed September 9, 1983; effective October 11, 1983. Repeal and new rules filed March 10, 2010; effective June 8, 2010. Repeal and new rules filed January 25, 2019; to have become effective April 25, 2019. However, the Government Operations Committee filed a 60-day stay of the effective date of the rules; new effective date June 24, 2019.

Tenn. Comp. R. & Regs. 0100-03-.07 AUTHORIZED PRODUCTS AND SERVICES BY RETAILERS

(1) A retail licensee is permitted to advertise or 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.

(2) The list of items a retail licensee may sell, contained in T.C.A. § 57-3-404(e)(4), is illustrative in nature and non-exclusive. The Commission shall have the right to specifically enumerate additional items it deems to be within the intent of the statute.

(3) A retail licensee may conduct demonstrations at any time of nonalcoholic products, both within the licensed premises and at locations outside of the licensed premises, without any restrictions and is not subject to any advertising restrictions of such demonstrations or other events occurring upon its premises or away from its premises, except as expressly set forth in Rules 0100-03-.01 through 0100-03-.08.

History

Authority: T.C.A. §§ 57-1-201, 57-1-209, 57-3-104, 57-3-202, 57-3-404, and 57-818.
Administrative History: Original rule certified June 7, 1974. Amendment filed September 9, 1983; effective October 11, 1983. Repeal and new rules filed March 10, 2010; effective June 8, 2010. Repeal and new rules filed January 25, 2019; to have become effective April 25, 2019. However, the Government Operations Committee filed a 60-day stay of the effective date of the rules; new effective date June 24, 2019.

Tenn. Comp. R. & Regs. 0100-03-.08 ADVERTISING APPROVAL DOES NOT SANCTION ANY VIOLATION, COMMISSION

DISCRETION ON ADVERTISING.

(1) No Advertising Shall Indicate Any Violation Permitted. No advertising permitted herein shall imply sanction in any manner of any violation of the Tennessee Code, rules and regulations of the Commission, or valid ordinance of a duly constituted authority.

(2) Commission May Compel Discontinuance. The Commission reserves the right to instruct the discontinuance and withdrawal of any advertisement in any medium whatsoever which in its discretion, is determined to be inconsistent with the public interest.

History

Authority: T.C.A. §§ 57-1-209, 57-3-104, 57-4-201, and 57-818.
Administrative History: Original rule certified June 7, 1974. Repeal and new rules filed March 10, 2010; effective June 8, 2010. Repeal and new rules filed January 25, 2019; to have become effective April 25, 2019. However, the Government Operations Committee filed a 60-day stay of the effective date of the rules; new effective date June 24, 2019.

Tenn. Comp. R. & Regs. 0100-03-.09 LICENSES AND PERMITS

(1) Full-time Municipal Law Enforcement Department Required. No retail liquor license shall be granted for a location which is not situated within the jurisdiction of a regular full-time municipal law enforcement department or within a jurisdiction that has contracted with a regular full-time law enforcement department to provide services to the jurisdiction.

(2) Financial Disclosure.

(a) Applicants for retail liquor licenses shall submit, in conjunction with their application, proof of financial responsibility. Specifically required with each application are the following:

Financial statements containing financial information as requested by the Commission;
Loan agreements related to the licensed premises, the retail liquor operation, or any other interests in other liquor-related businesses owned by the applicant;
Gifts related to the licensed premises, the retail liquor operation, or any other interest in other liquor-related businesses owned by the applicant; and 4. Any other information requested by the Commission.

(b) The Commission may refuse to grant a retail liquor license to any applicant who fails to demonstrate, by a preponderance of the evidence, the financial ability and responsibility to reasonably conduct business.

(c) Upon renewal of an existing license the applicant for renewal need submit only the financial information as specifically requested by the Commission.

(3) Restriction on License After Surrender or Revocation.

(a) No license will be issued to the spouse, child or children, son-in-law, daughter-in-law, or other person having any interest in the business of a licensee whose license has been revoked, for the privilege of doing business at the same location or in close proximity to the location of the establishment whose license was revoked for a period of one (1) year after said revocation. The Commission may, in its discretion, waive this prohibition.

(b) The Commission may refuse to reissue a license to the same person, firm, or corporation whose license has been revoked for one (1) year from the date of said revocation.

(c) The Commission may treat a surrender of a license as a revocation under the restrictions contained in this paragraph.

(4) Must Surrender License If Business Discontinued. Whenever any licensee discontinues business for any reason, he shall immediately notify the Commission in writing and surrender his license.

(5) Time Requirement to Commence Business. Approval, by the Commission, of the issuance of a new wholesaler’s or retailer’s license or the transfer of such a license to a different entity, shall automatically expire ninety (90) calendar days after such approval if the new license has not opened for business, unless a written request is received by the Commission for an extension of approval.

(6) Licensees Not Required to Have Permits. Persons whose names are listed on a license issued by the Commission are not required to obtain permits.

History

Authority: T.C.A. §§ 57-1-201, 57-1-209, 57-3-104, 57-3-203, 57-3-204, 57-3-208, and 57-4-201.
Administrative History: Original rule certified June 7, 1974. Amendment filed September 6, 1978; effective October 23, 1978. Amendment filed November 21, 1979; effective February 28, 1980. Amendment and new rule filed March 17, 1980; effective May 1, 1980. Amendment by Public Chapter 261; effective July 1, 1983. Amendment filed May 10, 1983; effective August 15, 1983. Amendment filed April 23, 1984; effective July 14, 1984. Amendment filed January 14, 1986; effective April 15, 1986. Amendment filed February 12, 1990; effective May 29, 1990. Amendment filed October 15, 1991; effective January 29, 1992. Repeal and new rule filed March 10, 2010; effective June 8, 2010. Repeal and new rules filed January 25, 2019; to have become effective April 25, 2019. However, the Government Operations Committee filed a 60-day stay of the effective date of the rules; new effective date June 24, 2019. Amendments filed February 9, 2024; effective May 9, 2024.

Tenn. Comp. R. & Regs. 0100-03-.10 TRANSPORTATION AND DELIVERY OF ALCOHOLIC BEVERAGES

(1) Requirement for All Transporters. Any person transporting alcoholic beverages within, into, through, or from the State of Tennessee must comply with the provisions of T.C.A. § 57-3- 403, and shall, when requested by any representative of the Commission, or person having police authority, exhibit to such person the required bill of lading or other memorandum of shipment covering the cargo of the vehicle.

(2) Requirements for Tennessee-Licensed Wholesalers.

(a) All trucks and other motor vehicles owned or leased and operated by any Tennessee licensed wholesaler, and used to transport, haul, deliver, or carry alcoholic beverages, shall have the name and address of such licensee printed on each side and on the rear of said truck or motor vehicle in legible letters of a minimum height as hereinafter prescribed. The name of the licensee shall be in letters not less than four (4) inches in height, the address of such licensee shall appear in letters of not less than two and one half (2½) inches in height. The following words, but no others, may be abbreviated:

Tennessee (Tenn.), Company (Co.), and Incorporated (Inc.).

(b) Irrespective of any provision to the contrary contained within this regulation, a licensed wholesaler, a salesperson employed by a licensed wholesaler, or an employee of a wholesaler who has an active employee permit issued by the Commission, may transport and make deliveries of beverage alcohol in amounts less than twenty (20) cases in vehicles which may or may not be owned or leased by the licensed wholesaler so long as the wholesaler, salesman, or employee possesses written documentation identifying the seller, purchaser, and the quantity and identity of products being delivered and so long as such delivery and transportation complies with the other transportation and delivery provisions of this regulation. Any wholesaler who authorizes such individual to transport in such a fashion shall be responsible for that individual’s compliance with these rules.

(3) Wholesaler Must Deliver Off Premises. All alcoholic beverages sold by a wholesaler must be delivered away from his premises and then only to another licensed wholesaler, to a retailer or his employee at the retailer’s licensed premises, to a retail food store or any employee of the retail food store at the retail food store’s licensed premises, or to a Department of Defense Installation after compliance with T.C.A. § 57-3-110. Delivery to a wholesaler in another county must be by common carrier.

(4) Pickup by Retailer Prohibited. No retailer or his employees shall accept any alcoholic beverages at the wholesaler’s premises or elsewhere other than at the licensed premises of the retailer.

(5) Transportation of Alcoholic Beverages by Retail Package Stores.

Where alcoholic beverages are desired to be transported for consumer educational seminars authorized by Rule 0100-03-.11(5), such transportation may be conducted by the wholesaler or retailer in accordance with the following provisions of this subparagraph:

(a) The wholesaler or retailer shall transport alcoholic beverages directly to the location of the consumer educational seminar no more than twenty-four (24) hours prior to the time reported to the Commission for the start of the consumer educational seminar.

(b) All unsealed or otherwise opened containers of alcoholic beverages not consumed during the registered time of a consumer educational seminar shall be disposed of by removing opened container(s) and returning the product to the retail or wholesale premises. Such product, if returned to the retail licensee’s premises, shall be documented as to its source and may only be used for employee training purposes. No sealed or unsealed containers of alcoholic beverages shall be given, sold, or otherwise transferred to persons attending a consumer educational seminar, to an on-premises consumption licensee, or to any other person.

(c) The wholesaler or retailer shall transport any unopened containers directly back to the licensed retail location within twenty-four (24) hours of the conclusion of the consumer educational seminar if the retailer purchased the alcohol. However, if the wholesaler donated the alcohol, then the wholesaler may, at its option, return such alcohol to its inventory or provide such alcohol to the retailer for use in employee training and not for resale.

(d) There shall accompany such alcoholic beverages at all times during transportation by the wholesaler or retailer as authorized herein, a copy of the written notification to the Commission regarding the consumer educational seminar and a copy of the invoice.

Further, any retailer transporting the alcohol to the approved seminar shall take a reasonably direct route from the location where the alcohol is obtained (either the wholesaler’s licensed premises or the retailer’s licensed premises) to the address of the consumer educational seminar approved by the Commission.

(6) Metric Net Contents.

(a) Distilled Spirits. The authorized standards of fill for distilled spirits shall be those container sizes authorized by 27 CFR § 5.47a.

(b) Wine. The authorized standards of fill for wine, as defined in 27 CFR § 24.10, shall be those container sizes authorized by 27 CFR § 4.72.

History

Authority: T.C.A. §§ 57-1-201, 57-1-209, 57-3-104, 57-3-203, 57-3-204, 57-3-208, and 57-4-201.
Administrative History: Original rule certified June 7, 1974. Amendment filed April 29, 1982; effective July 29, 1982. Amendment by Public Chapter 261; effective July 1, 1983. Amendment filed May 10, 1983; effective August 15, 1983. Amendment filed September 9, 1983; effective October 11, 1983. Amendment filed April 23, 1984; effective May 23, 1984. Amendment filed September 10, 1985; effective December 14, 1985. Amendment filed July 31, 1987; effective October 28, 1987. Amendment filed August 15, 1997; effective December 29, 1997. Amendment filed August 18, 1998; effective December 29, 1998. Repeal and new rules filed March 10, 2010; effective June 8, 2010. Repeal and new rules filed January 25, 2019; to have become effective April 25, 2019. However, the Government Operations Committee filed a 60-day stay of the effective date of the rules; new effective date June 24, 2019. Amendments filed June 26, 2019; effective September 24, 2019. Amendments filed February 9, 2024; effective May 9, 2024.

Tenn. Comp. R. & Regs. 0100-03-.11 SOLICITATION OF BUSINESS, SERVICES RESTRICTED

(1) Manufacturers and Importers Limited to Wholesale Solicitation.

(a) No manufacturer, importer, non-resident seller, non-manufacturer non-resident seller, or any representative thereof shall solicit orders in any manner for alcoholic beverages from anyone in the state except those holding wholesale licenses. The marketing, advertising, or promoting, or the encouraging of the public to purchase the manufacturer’s, non-resident seller’s, or non-manufacturer non-resident seller’s product, does not constitute soliciting an order and does not require a permit.

(b) No manufacturer, importer, non-resident seller, non-manufacturer non-resident seller, or any representative thereof shall perform or provide any service whatsoever for a retail on-premise or off-premise licensee or his employee in the state, and no onpremise or off-premise licensee shall accept any service whatsoever, whether on or away from the retail premises—except as specifically authorized under Rules 0100-03- .06 and 0100-06-.03.

(c) No manufacturer, importer, non-resident seller, non-manufacturer non-resident seller, or any representative thereof shall give anything of value whatsoever, including but not limited to alcoholic beverages and money, to any Tennessee retail on-premise or offpremise licensee or his employee, and no on-premise or off-premise licensee shall accept anything of value whether on or away from the retail premises except as specifically authorized under Rules 0100-03-.06 and 0100-06-.03.

(d) A manufacturer, importer, non-resident seller, non-manufacturer non-resident seller, or representative thereof may enter the premises of a retail licensee for the purpose of promoting the products manufactured, imported, or represented by the manufacturer, importer, non-resident seller, non-manufacturer non-resident seller, or representative, surveying or examining the retail and marketing operations of such on-premise or offpremise retail licensee or examining the advertising displays within the premises of such on-premise or off-premise retail licensee. Such manufacturer, importer, nonresident seller, non-manufacturer non-resident seller, or representative may also provide, orally or in writing, information related to such products to any licensee or employee of such licensee on the on-premise or off-premise retail licensee’s premises as well as customers of the retail package store licensee in relation to tastings held under T.C.A. § 57-3-404(h)(2).

(e) A manufacturer, importer, non-resident seller, non-manufacturer non-resident seller, or representative thereof may, with the consent of the retail package store, “face up” or dress a display of those products (and only those products) manufactured, imported, or represented by such person which displays are already established at such retail licensee premises and may arrange or rearrange those products manufactured, imported, or represented by such person which have been placed on display on the retail premises but is limited to “pulling forward” inventory already in the showroom and no restocking may occur from any area off the showroom floor. While providing such service, such person may not move, disturb, relocate, or re-shelve any product other than the products manufactured, imported, or represented by such person. No services of this kind may be provided to any retail food store licensee on or off their premises.

(2) Wholesale Sales Limited to Retailers.

(a) No wholesaler, salesman, or employee thereof shall solicit orders in any manner for alcoholic beverages from anyone in this state except those holding retail licenses.

(b) No wholesaler, salesman, or employee thereof shall provide any service whatsoever for a retail licensee or his employee whether within or away from the retail premises with the following exceptions:

Delivering alcoholic beverages or any item permitted under Chapter 0100-06 to the licensed premises.
Arranging stock delivered by his company in retail package stores.
Setting up advertising signs or displays at retail package stores as set forth in Rules 0100-03-.05 and 0100-03-.06.
Assisting in the conduct of any retailer sponsored consumer educational seminar held in accordance with Rule 0100-03-.11(5).
Providing the services to retail food store licensees authorized by Chapter 443 of the Public Acts of 2017.

(c) No wholesaler, his salesman, or employee shall give anything of value whatsoever including, but not limited to, money and alcoholic beverages to any retail licensee or his employee except as otherwise permitted in these rules. No Tennessee retail licensee or his employee shall accept any alcoholic beverages, money, or other things of value except as allowed or provided for by the applicable regulations as set forth at Chapter 0100-06.

(d) Wholesalers are prohibited from accepting an order for alcoholic beverages from one retailer and delivering and invoicing part of the order to one retailer and the remainder of the order to another licensee. Retailers are prohibited from placing an order for one licensee, and having part of the order delivered to another licensee.

(e) Notwithstanding the limitations contained herein, a wholesaler, its salesman or its employees may solicit orders from any entity that has submitted to the Commission an application for license under T.C.A. §§ 57-3-204 or 57-4-101, but the wholesaler may not deliver any alcoholic beverages until the Commission has approved and issued such license.

(3) Complimentary Alcohol from Retailers. No retail package store licensee or his employee shall give any consumer any complimentary alcohol except as provided in T.C.A. § 57-3-404 or this rule.

(4) Tax Laws Unaffected. No provision of this rule is intended to restrict or otherwise affect the deductions available to manufacturers, importers, wholesalers or retailers for purposes of calculating taxes due to the United States.

(5) Retail Package Store Sponsored Consumer Educational Seminars. A retail package store licensed under T.C.A. § 57-3-204 may conduct consumer educational seminars, which may include providing alcoholic beverages and wine directly to consumers for tasting purposes. A retailer must provide to the Commission written notification on forms prescribed by the Commission if the licensee or its representative or employee is present to discuss the product being sampled, if the licensee is sponsoring or co-sponsoring the event, if the licensee has provided the product to be sampled, and/or if the licensee is soliciting orders at the event.

(a) No consumer educational seminar which includes the consumption of alcoholic beverages or wine by a consumer may occur at a premises licensed by the Tennessee Alcoholic Beverage Commission pursuant to T.C.A. § 57-3-204. (See T.C.A. § 57-3- 406(f)). Further, consumer educational seminars must occur within the boundaries of a political subdivision wherein the sale of alcoholic beverages at retail has been approved pursuant to T.C.A. §§ 57-3-106 and 57-4-103.

(b) Any retailer desiring to conduct a consumer educational seminar which involves the consumption of alcoholic beverages must provide written notification to the Commission disclosing the following information:

The date, time, and exact location of the consumer educational seminar;
The sponsors of such consumer educational seminar and any supplier or wholesaler involved, either directly or indirectly, with such consumer educational seminar;
Whether any fee or cost is assessed to the attendees in order to attend the consumer educational seminar, and if so, the amount of such fee; and 4. Any other relevant information as may be required by the Commission.

(c) Written or electronic notifications must be submitted to the Commission not less than two (2) calendar days prior to the date of the consumer educational seminar. Proof of such written notification shall be available for inspection at the event.

(d) No manufacturer, non-resident seller, or non-manufacturer non-resident seller may directly supply any product to a retailer for use at a consumer educational seminar.

Nothing herein shall prohibit a wholesaler licensed pursuant to T.C.A. § 57-3-203 from providing product to the retailer for use at a consumer educational seminar, nor shall this provision preclude a manufacturer or non-resident seller from providing product to a wholesaler with the intent that such product be used at a consumer educational seminar. A wholesaler who provides such product for an event should make a reasonable effort to provide a sufficient quantity of alcohol, but not in excess of the amount needed to conduct the consumer educational seminar. Any unopened salable product remaining at the conclusion of the seminar shall be returned to the wholesaler who provided the product if the product was donated for the event, pursuant to T.C.A. § 57-3-403 and Rules 0100-03-.14(1) and 0100-03-.10(5).

(e) Any consumer educational seminar conducted under this rule shall be conducted in accordance with the hour limitations set forth at T.C.A. § 57-4-203(d)(1).

(f) A manufacturer, non-resident seller, non-manufacturer non-resident seller, retailer, wholesaler, or representative thereof whose products are to be tasted may advertise, in accordance with all other applicable regulations of the Commission, the date, time, location, sponsors, speakers, products to be tasted, food to be served, charge for attendance, and such other information as may be appropriate to inform the consumers of the consumer educational seminar. A retail location of a consumer educational seminar included in an industry member advertisement shall be relatively inconspicuous in relation to the advertisement as a whole.

(g) A manufacturer, non-resident seller, non-manufacturer non-resident seller, wholesaler, or representative thereof whose products are to be tasted may furnish consumer advertising specialties permitted under the rules directly to consumers, or to a retailer for distribution to consumers, at the consumer educational seminar.

(h) A consumer educational seminar conducted under this rule may be conducted at any premises licensed pursuant to T.C.A. § 57-4-101. If so, a retailer may impose a reasonable charge for attendance at the consumer educational seminar may solicit orders from consumers at the seminars, provided that final sales of wines and alcoholic beverages must be completed within the licensed premises of the retail package store or delivered pursuant to Rule 100-03-.10(5)(a).

(i) Individuals holding any permit issued by the Commission or certified clerks employed by retail package stores may serve or dispense alcoholic beverages. Nothing in this paragraph authorizes an on-premise consumption licensee to purchase and resell alcoholic beverages from any entity other than a licensed wholesaler. In addition, an individual listed as licensee or manager on the license application or in the records of the Commission may serve or dispense alcoholic beverages at such educational seminar.

(j) If a consumer educational seminar is to be conducted at a premises not licensed pursuant to T.C.A. § 57-4-101, the following additional conditions shall apply:

No food, goods or services may be purchased or sold and no solicitation of orders may occur.
No person may attend such consumer educational seminar unless such person has received a written invitation, addressed to the invitee.
No charge may be imposed upon such invitee for attendance or for any food or product consumed.

(k) The retail licensee shall be responsible for compliance with all statutes, rules, and regulations, including but not limited to the prohibitions of selling to a minor or to an intoxicated individual. Violations of any statutes, rules, or regulations may result in disciplinary action against the appropriate licensee.

History

Authority: T.C.A. §§ 57-1-209, 57-3-104, 57-3-202, 57-3-203, 57-3-210, 57-3-404, 57-3-405, 57-3-604, 57-3-815, and 57-818.
Administrative History: Original rule certified June 7, 1974; Amendment filed August 3, 1979, Disapproved by G.O.C. December 13, 1974. Amendment filed December 4, 1979; Disapproval hearing notice filed March 13, 1980; approved by G.O.C. April 8, 1980. Amendment filed September 9, 1983; effective October 11, 1983. Amendment filed August 18, 1998; effective December 29, 1998. Repeal and new rules filed March 10, 2010; effective June 8, 2010. Repeal and new rules filed January 25, 2019; to have become effective April 25, 2019. However, the Government Operations Committee filed a 60-day stay of the effective date of the rules; new effective date June 24, 2019.

Tenn. Comp. R. & Regs. 0100-03-.12 CONTAINERS AND SIZES

(1) Original Retail Containers Required. No licensee shall import into Tennessee or sell in Tennessee any alcoholic beverages, except as provided by T.C.A. § 57-3-404(e)(4)(E) or § 57-4-108, not in original retail containers.

(2) Standards of Fill for Wine.

All wine bottled in, sold in, and shipped into this state shall be in containers specified in the Standards of Fill for Wine prescribed by the Department of the Treasury of the United States for wine shipped in interstate commerce; and, said Federal Regulations relating to Standards of Fill for Wine are hereby adopted and incorporated by reference herein. See Rule 0100-03- .10(6).

(3) Distilled Spirits May Be Imported in Bulk Tennessee-licensed manufacturers may import distilled spirits in bulk for the purpose of manufacturing, rectifying, or blending, except that distilled spirits imported in bulk from outside of the State of Tennessee shall not be used in the manufacturing, rectifying, or blending of Tennessee whiskeys as defined in T.C.A. § 57-2-106. Such bulk shipments shall only be permitted in compliance with the rules and requirements of the Tobacco Tax and Trade Bureau (“TTB”) and T.C.A. § 57-3-202(f).

(4) Standards of Fill for Distilled Spirits All distilled spirits bottled in, sold in, and shipped into this state shall be in containers specified in the Standards of Fill for Distilled Spirits prescribed by the TTB for shipments of distilled spirits; and, said Federal Regulations relating to Standards of Fill for Distilled Spirits are hereby adopted and incorporated by reference herein. See Rule 0100-03-.10(6).

History

Authority: T.C.A. §§ 57-1-201, 57-1-209, 57-3-104, 57-3-202, 57-3-203, 57-3-207, 57-3-218, 57-3-303, 57-3-307, 57-3-404, 57-4-201, 57-4-108, 57-818, and 67-1-102.
Administrative History: Original rule certified June 7, 1974; Repeal filed March 31, 1982; effective July 1, 1982. Repeal and new rules filed March 10, 2010; effective June 8, 2010. Repeal and new rules filed January 25, 2019; to have become effective April 25, 2019. However, the Government Operations Committee filed a 60-day stay of the effective date of the rules; new effective date June 24, 2019.

Tenn. Comp. R. & Regs. 0100-03-.13 CONDUCT OF BUSINESS - WHOLESALER AND RETAILER

(1) All Licensees Must Keep Records Available Three (3) Years. Each licensee shall keep, for at least three (3) years, all purchase orders, invoices, and all other records of all purchases and sales of alcoholic beverages made by such licensee. All such orders, invoices, and all other books and records pertaining to the licensee’s operation shall be open for inspection to any authorized representative of the Alcoholic Beverage Commission or Department of Revenue during business hours and failure to make such available shall be deemed cause for revocation of his license. For the purposes of this paragraph, electronic records are sufficient if they are readily available and easily accessible.

(2) Business Management Restricted. Every licensed wholesale or retail business shall be managed by the holder of the license, if an individual, or by a partner or corporate officer, in the event that the business is operated by a partnership or corporation. In every case where alcoholic beverages at wholesale or retail are sold by a partnership or corporation, the managing partner or corporation officer in active control and management of the business shall be designated to the Commission.

(3) Hours Licensees May Remain Open. Wholesalers and Retailers may remain open for business between the hours of 8:00 a.m. and 11:00 p.m. by the time zone and system in effect in the city where the store is located.

(4) Storage Limited to Ground Floor of Licensed Premises. No wholesaler or retailer shall store alcoholic beverages at any place other than the ground floor constituting his licensed premises without written permission of the Commission.

(5) No Wholesaler May Store for Retailer. No wholesaler shall store alcoholic beverages for a retail dealer without written approval of the Commission.

(6) No Retailer May Store for Another Retailer. No retailer shall store alcoholic beverages belonging to another retail licensee.

(7) A retailer shall not sell alcoholic beverages to an individual whom the retailer should reasonably believe is reselling such alcoholic beverages not permitted by law.

(8) Contests Involving Alcoholic Beverages Prohibited. No manufacturer, wholesaler, nonresident seller, non-manufacturer non-resident seller, retailer, or representative or employee thereof may:

(a) Sponsor or conduct a contest in which alcoholic beverages are offered as prizes, premiums, or rewards;

(b) Offer as a prize, premium, or reward any alcoholic beverages; or (c) Directly or indirectly aid or assist in the promotion of a contest involving alcoholic beverages which is conducted or sponsored by any person not a licensee.

(d) Notwithstanding the foregoing, a manufacturer, wholesaler, non-resident seller, nonmanufacturer non-resident seller, or retailer may sponsor or conduct a contest in which alcoholic beverages are offered as prizes, premiums, or rewards for their own employees.

(9) Gift Certificates. Tennessee-licensed retailers may sell gift certificates or gift cards to consumers. No gift card shall be honored, accepted, or sold to anyone visibly intoxicated. No gift card shall be honored or accepted from anyone under the age of twenty-one (21) for the purchase of alcoholic beverages or beer. Such practices will be deemed to be a violation.

(10) Refusal of Cooperation. Any licensee who refuses to open or disclose records to, or furnish information to, or who furnishes false and/or misleading information to an agent of the Tennessee Alcoholic Beverage Commission upon any matter relating to or arising out of the conduct of the licensed premises shall subject the license to revocation or suspension.

(11) Open Access to Licensed Premises Without Warrant. Immediate access, without a warrant, to all parts of a licensed premise shall at all times be accorded agents or representatives of the Tennessee Alcoholic Beverage Commission.

(12) Licensee Responsible for Law and Order on Licensed Premises. Each licensee will maintain the licensed establishment in a decent, orderly, and respectable manner and in full compliance with federal statutes, Tennessee laws, Commission rules and regulations, and local ordinances and laws in the municipality and/or county where licensed premises are located. Licensees remain responsible for complying with this rule if the licensed owner or operator rents, leases, or otherwise permits another to occupy the licensed premises.

(13) Not withstanding any provisions herein, a retailer may accept a tentative order for alcoholic beverages from consumers by telephone, e-mail, facsimile transmission, or other electronic means, provided, however, the retailer maintains a record, written or electronic, of the items tentatively ordered for a period of thirty (30) days following the actual purchase of the items.

(14) A retail package store may sell or deliver alcoholic beverages or supply, deliver, and install products authorized to be sold by the retailer pursuant to T.C.A. § 57-3-406(j).

(15) Any government-issued document that has expired shall not be deemed to be “valid” for purposes of T.C.A. § 57-3-406(d), and as such, a retailer may not sell alcoholic beverages to a person who has not provided an unexpired government-issued document that meets the requirements of T.C.A. § 57-3-406(d).

(16) A retailer, whose primary purpose for existing is to sell alcoholic beverages, is restricted from operating on Christmas, Thanksgiving, and Easter.

History

Authority: T.C.A. §§ 57-1-201, 57-1-209, 57-3-104, 57-3-202, 57-3-203, 57-3-404, 57-3-406, and 57-4- 108.
Administrative History: Original paragraphs (1) and (3) certified by the Alcoholic Beverage Commission June 7, 1974. Original paragraph (2) certified by the Department of Revenue June 7, 1974. Original paragraph (4) filed October 22, 1975; effective January 14, 1976. Amendment by Public Chapter 261; effective July 1, 1983. Repeal and new rules filed March 10, 2010; effective June 8, 2010. Amendment filed December 18, 2015; effective March 17, 2016. Repeal and new rules filed January 25, 2019; to have become effective April 25, 2019. However, the Government Operations Committee filed a 60-day stay of the effective date of the rules; new effective date June 24, 2019. Amendments filed February 9, 2024; effective May 9, 2024.

Tenn. Comp. R. & Regs. 0100-03-.14 CONDUCT OF BUSINESS OF WHOLESALERS

(1) Wholesaler Accountable for Inventory; Methods of Disposition of Alcoholic Beverage Limited.

A wholesaler is strictly accountable for his inventory which he may deplete in the following manners only:

(a) Sales to a licensed retailer and to no other person and each sale and delivery must be covered by an invoice.

(b) Wholesalers may deplete inventories for personal or training use, for purposes of contributing to a charitable organization, for marketing, or for use at educational seminars held pursuant to Rule 0100-03-.11 or held for the benefit of retailer customers of the wholesaler. The wholesaler shall retain records of all such withdrawals showing the amount of inventory withdrawn, the purpose of the withdrawal and the employee responsible for such withdrawal. These records shall be retained in accordance with

Rule 0100-03-.13(1).

(d) Courtesy sales from one wholesaler to another within the state.

(e) Returned merchandise to the manufacturer or importer.

(2) Consignment and Returns.

(a) No wholesaler shall sell and no retailer shall accept any alcoholic beverage on consignment, or upon condition, or with the privilege of return, or on any condition other than a bona fide sale, except as may be permitted pursuant to Chapter 0100-06.

(b) Novelty containers, commonly known as Christmas decanters, must be accepted back upon request in exchange for similar quantity of alcoholic beverages of the same brand and proof in conventional containers by the wholesaler from the retailer and by the manufacturer from the wholesaler. Such requests shall not be submitted before January 15 next after the Christmas season for which such decanters were delivered.

(3) Breakage and Deteriorated Merchandise.

The following procedure shall be followed in handling and accounting for broken or deteriorated merchandise:

(a) Wholesalers shall return broken bottles or deteriorated merchandise from the retailer involved to his warehouse before replacing same with the retailer.

(b) Replacement shall be listed on the wholesaler’s standard invoice and designated whether breakage or deteriorated merchandise.

(c) The wholesaler shall prepare a standard invoice covering the breakage or deteriorated merchandise within his own stock on the date it is broken or the deteriorated merchandise is removed from his inventory.

(d) No later than the fifth (5th) day of the month each wholesaler shall prepare from invoices of the previous month a complete list of breakage and deteriorated merchandise. The list shall be prepared in triplicate and shall include the invoice number, retail license number (or wholesaler’s license number), brand, and size.

(e) An agent of the Tennessee Alcoholic Beverage Commission shall use this list in checking and destroying broken bottles, and checking the deteriorated merchandise which he shall mark as unsaleable. The agent will certify all three (3) copies of the list and forward one (1) copy to the Commission. The wholesaler shall mail another copy to the Miscellaneous Tax Division of the Department of Revenue and retain the third (3rd) as a part of its records.

(f) After checking and marking, the wholesaler may dispose of the deteriorated merchandise without regard to the limitation established in Rule 0100-03-.16(1)(b) provided, however, the wholesaler will incur tax liability at the same time all such unsaleable alcoholic beverages are removed from inventory and not destroyed.

(4) Wholesaler Assistance at Special Occasion Events. A wholesaler or employee thereof may participate in, assist, and serve alcoholic beverages on behalf of a holder of special occasion permits issued pursuant to T.C.A. § 57-4-101(g).

History

Authority: T.C.A. §§ 57-1-209, 57-3-104, 57-3-104(c)(4), 57-3-203, 57-3-303, 57-3-307, 57-3-404, 67-1- 102, and Chapter 707, Public Acts of 1974, § 1.
Administrative History: Original paragraphs (1) and (3)- (10) certified by the Alcoholic Beverage Commission June 7, 1974. Original paragraph (2) certified by the Department of Revenue June 7, 1974. Amendment filed October 15, 1981; effective January 27, 1982. Amendment by Public Chapter 261; effective July 1, 1983. Amendment filed September 9, 1983; effective October 11, 1983. Amendment filed November 7, 1997; effective March 30, 1998. Repeal and new rules filed March 10, 2010; effective June 8, 2010. Repeal and new rules filed January 25, 2019; to have become effective April 25, 2019. However, the Government Operations Committee filed a 60-day stay of the effective date of the rules; new effective date June 24, 2019.

Tenn. Comp. R. & Regs. 0100-03-.15 RESTRICTIONS ON PREMISES, CONDUCT OF BUSINESS OF RETAILERS

(1) Retailers Not to Combine. No combination of retailers shall be permitted to purchase merchandise in the name of one (1) retailer and subsequently distribute merchandise which they have purchased in combination with each other to any one of the combination and no retailer shall be permitted to transfer goods from one to another. If any member of the combination is found to have violated this regulation, every member shall likewise be deemed to have violated this regulation, and it shall also be a violation for the wholesale distributor to furnish merchandise to any combination of retail dealers.

(2) Living Quarters Prohibited. No part of the licensed premises occupied by a liquor store shall be used as living quarters by any person.

(3) Drinking In or On Premises Prohibited. No retail licensee or his employee shall consume alcoholic beverages or permit alcoholic beverages to be consumed within publicly accessible areas of the retail establishment. Employee-only tastings are authorized to be conducted on the retail premises as authorized by T.C.A. § 57-3-404(h). Alcoholic beverages used for employee-only tastings/education must be properly identified as such and proper documentation from the wholesaler must be maintained on the premises. Notwithstanding this provision, all open alcohol being used for employee tastings/education must be removed within seven (7) days of the wholesaler documentation. No licensee or his employee shall engage in the sale of alcoholic beverages on the licensed premises while under the influence of intoxicants or drugs.

(4) Notwithstanding paragraph (3) of this rule, a retail package store may conduct tastings pursuant to T.C.A. § 57-3-404(h).

(5) Operation of a Licensee. Every retail licensee shall register and designate on its application one or more persons as managers of the retail operation. All managers of retail licensees shall submit to the Alcoholic Beverage Commission a completed questionnaire within one (1) week of assuming such duties. Such person may be the licensee, if the licensee is an individual. The designated manager or managers of the licensee shall be either the owner or a full-time employee of the licensee and shall not be an employee of any other licensee nor shall such be a consultant, advisor, or provide any services to any other licensee. Only the licensee, if an individual, or the designated manager or managers may engage in any of the following activities:

(a) Select, order, or price inventory, (b) Employ or discharge the employees of the retail establishment, (c) Approve advertising, marketing programs of the licensee.

History

Authority: T.C.A. §§ 57-132, 57-136, 57-1-209, 57-3-104, 57-3-204, 57-3-212, 57-3-221, 57-3-404, 57- 818, 67-101, and Chapter 707, Public Acts of 1974, § 1.
Administrative History: Original paragraphs (11) and (13) certified by the Alcoholic Beverage Commission June 7, 1974. Original paragraph (2) certified by the Department of Revenue June 7, 1974. Amendment filed August 3, 1979, Disapproved by G.O.C. December 13, 1979; filed December 4, 1979, Disapproval Hearing Notice filed March 13, 1980; Approved by G.O.C. April 8, 1980. Amendment by Public Chapter 261; effective July 1, 1983. Amendment filed August 18, 1998; effective December 29, 1998. Repeal and new rules filed March 10, 2010; effective June 8, 2010. Repeal and new rules filed January 25, 2019; to have become effective April 25, 2019. However, the Government Operations Committee filed a 60-day stay of the effective date of the rules; new effective date June 24, 2019.

Tenn. Comp. R. & Regs. 0100-03-.16 DUAL INTERESTS PROHIBITED

(1) Manufacturer, Importer, Non-Resident Seller, and Non-Manufacturer Non-Resident Seller.

(a) No manufacturer or representative of the same shall have any kind of direct or indirect interest in any wholesaler or any retail on-premise or off-premise establishment in Tennessee. A prohibited interest includes the possessing of any financial or other interest in the establishment, providing or having interest in any fixtures or furnishings, stock ownership, loans, gifts, the securing of loans, the guaranteeing of any loan payment, or participating in the profits.

(b) No importer, non-resident seller, non-manufacturer non-resident seller, or representative of the same shall have any kind of direct or indirect interest in any retail on-premise or off-premise establishment in Tennessee. A prohibited interest includes the possessing of any financial or other interest in the establishment, providing or having interest in any fixtures or furnishings, stock ownership, loans, gifts, the securing of loans, the guaranteeing of any loan payment, or participating in the profits.

(c) An importer, non-resident seller, non-manufacturer non-resident seller, or representative of the same may have a direct or indirect interest in a wholesaler.

(d) “Indirect interest” as used in this rule means any kind of interest in the wholesaler, retail on-premise, or retail off-premise establishment by way of stock ownership, loan, partner’s interest, or control, including the use of a brand name, trademark, or sponsorship of the, manufacturer wholesaler, importer, non-resident seller, nonmanufacturer non-resident seller, or representative of the same.

(e) “Direct or indirect interest” between 1) a manufacturer, importer, non-resident seller, non-manufacturer non-resident seller, or representative of the same and 2) an onpremise establishment does not include:

An interest held by a spouse or child over the age of twenty-one (21) as separate and distinct property; provided, that there is no commingling of assets or sharing of control in such arrangement;
An interest of a person or entity having less than a five percent (5%) ownership interest in a manufacturer, importer, non-resident seller, non-manufacturer nonresident seller, or on-premise establishment; or 3. An interest held in an irrevocable trust by an independent trustee.

(2) Wholesaler and Retailer.

No wholesaler, and no partner, member, or person owning stock in a corporation licensed as a wholesaler, and no employee of same, shall have any interest in any business licensed as an on-premise or off-premise retailer, and no retailer and no retailer’s employee, shall have any such interest in any wholesale establishment. A prohibited interest includes the possessing of any financial or other interest in the establishment, providing or having interest in any fixtures or furnishings, stock ownership, loans, gifts, the securing of loans, the guaranteeing of any loan payment, or participating in the profits.

History

Authority: T.C.A. §§ 57-1-209; 57-3-104; 57-3-210; 57-3-604; 57-4-201; 57-818; Chapter 968, Public Acts of 2012; and Chapter 371, Public Acts of 2017.
Administrative History: Original rule certified June 7, 1974. Amendment filed February 22, 1980; effective April 6, 1980. Amendment filed December 1, 1980; effective March 31, 1981. Amendment filed April 16, 1981; effective July 29, 1981. Amendment by Public Chapter 261; effective July 1, 1983. Repeal and new rules filed March 10, 2010; effective June 8, 2010. Repeal and new rules filed January 25, 2019; to have become effective April 25, 2019. However, the Government Operations Committee filed a 60-day stay of the effective date of the rules; new effective date June 24, 2019.

Tenn. Comp. R. & Regs. 0100-03-.17 RESPONSIBILITY AND PENALTIES FOR VIOLATIONS

(1) Employer Responsible for Employee’s Action. Licensees are at all times responsible for the conduct of their businesses and are at all times directly responsible for any act or conduct of any employee which is in violation of the laws of Tennessee, the rules and regulations of the Commission, any local ordinance and/or any federal statute, whether the licensee be present at any such time or not. Any unlawful, unauthorized, or prohibited act on the part of an agent or employee shall be construed as the act of the employer, and the employer shall be liable as though he were present and had an active part in such unlawful, unauthorized, or prohibited act, and as if having been at the employer’s direction and with his knowledge.

Notwithstanding this provision, a licensee may present mitigating factors.

(2) In Disciplinary Action. In disciplinary proceedings, it shall be no defense that an employee or agent of a licensee acted contrary to order, or that a licensee did not personally participate in the violating action or actions—except as permitted under Rule 0100-05-.07.

(3) Avoidance of Tax Liability. Any manufacturer, importer, or representative of the same, and any wholesaler or retailer or employee of the same, who shall evade, or render direct or indirect assistance in the evasion of, the payment of the taxes imposed in T.C.A. §§ 57-3- 302, 57-3-303, 57-4-301, and 57-6-201, or who shall violate, in any manner aid or abet, participate in any scheme to violate the local option law, or fail or neglect to comply with any regulations here in, shall be deemed to have given cause for suspension or revocation of his license, or permit, or if holding no license or permit, to have given cause for withdrawal or suspension of any privilege granted in Tennessee by the Commission in its discretion.

History

Authority: T.C.A. §§ 57-1-201 57-1-209, 57-3-104, 57-3-302, 57-3-303, 57-4-201, and 57-818.
Administrative History: Original rule certified June 7, 1974. Repeal filed September 9, 1983; effective October 11, 1983. Repeal and new rules filed March 10, 2010; effective June 8, 2010. Repeal and new rules filed January 25, 2019; to have become effective April 25, 2019. However, the Government Operations Committee filed a 60-day stay of the effective date of the rules; new effective date June 24, 2019.

Tenn. Comp. R. & Regs. 0100-03-.18 TRANSFER OF LICENSES

(1) The transfer of a retail liquor license from one location to another shall be subject to the following provisions:

(a) The new location must be within the same city as the original location.

(b) The application for transfer must pay or must have paid the full annual license fee for the year in which the transfer is requested.

(c) The physical transfer of the store must be completed within ninety (90) days after the transfer is granted. Under exceptional and unusual circumstances, the applicant may request an additional thirty (30) days’ time. However, the request must be made in writing and must state the reasons for the extension. Such request must be submitted to the Commission prior to the aforementioned ninetieth (90th) day.

(d) The approval of all applications for the transfer of a retail liquor license shall be within the discretion of the Alcoholic Beverage Commission.

(e) Circumstances which may be considered by the Commission include:

Physical destruction of the premises not the fault of the licensee.
Bona fide termination of the lease, with the remaining term of the lease not to exceed one (1) year from the date the transfer is considered by the Commission.

(i) Accompanying each application for transfer shall be a sworn statement by the applicant declaring the reason for the lease termination.

(ii) If the applicant for transfer is purchasing the property for the proposed new location, then the appropriate documents shall be submitted with the application evidencing the purchase.

(iii) If the applicant for transfer is building a new structure for the proposed new location, the structure’s blue prints or other building plans shall be submitted with the application.

Eminent domain or condemnation proceeding causing serious disruption of the business.
Substantial changes in traffic patterns surrounding the existing store.
Situations, which in the discretion of the Commission, are determined to be a material change of circumstances.

(f) The application for a transfer of a retail liquor license shall follow the procedural requirements prescribed for applications for new licenses contained in Rule 0100-03- .09(9).

(g) The proposed new location must comply with such statutes, regulations, and ordinances for new licenses as are determined to be applicable and material in the discretion of the Commission.

History

Authority: T.C.A. §§ 57-1-209, 57-3-104, 57-3-104(c)(4), 57-3-212, 57-4-201, 57-4-201(a)(2), and 57- 818.
Administrative History: Original rule certified June 7, 1974. Repeal and new rules filed March 10, 2010; effective June 8, 2010. Repeal and new rules filed January 25, 2019; to have become effective April 25, 2019. However, the Government Operations Committee filed a 60-day stay of the effective date of the rules; new effective date June 24, 2019.

Tenn. Comp. R. & Regs. 0100-03-.19 MANUFACTURER REPRESENTATIVE PERMITS

(1) A manufacturer representative permit issued pursuant to T.C.A. § 57-3-202(d) is only required for owners, officers, employees, or representatives soliciting orders from licensed wholesalers in Tennessee and shall not be required of owners, officers, employees, or representatives that are marketing and promoting the product to the general public or to situations described in T.C.A § 57-3-202(k)(3). In addition, a manufacturer representative permit is not required for individuals who work at a manufacturer’s or importer’s premises unless they also perform such other tasks that require such a permit.

(2) A manufacturer representative permit issued pursuant to T.C.A § 57-3-202(d) shall be issued exclusively to the individual applying for such permit and shall not reference any manufacturer, rectifier, or importer. Such permit belongs to the individual holding such permit and not to any manufacturer, rectifier, or importer.

History

Authority: T.C.A. §§ 57-3-104, 57-3-202, and 57-818.
Administrative History: Original rule certified June 7, 1974. Repeal filed March 29, 1982; effective July 1, 1982. Repeal filed March 10, 2010; effective June 8, 2010. Repeal and new rules filed January 25, 2019; to have become effective April 25, 2019. However, the Government Operations Committee filed a 60-day stay of the effective date of the rules; new effective date June 24, 2019.

Tenn. Comp. R. & Regs. 0100-03-.20 DONATIONS TO NONPROFIT ORGANIZATIONS

(1) Any licensee shall be permitted to make withdrawals from inventory for donations to any organization that has been recognized as exempt from federal taxes under § 501(c) of the Internal Revenue Code (26 U.S.C. § 501(c)) and that will serve or sell the donated products at a special occasion licensed event. A donation may occur before a qualified entity receives a special occasion license from the Commission.

(2) Donations made pursuant to this rule may be delivered by the licensee to the recipient organization or may be picked up by the recipient organization at the licensees’s premises.

(3) Licensee’s making donations under this rule shall maintain adequate records of the donation, including the amount donated, the FEIN of the recipient organization, and a copy of the letter from the IRS granting exempt status to such recipient organization received by the licensee from recipient organization. Upon request, licensees shall present documentation to the Commission of such withdrawals.

(4) Licensees making donations under this rule are responsible for paying all required state and federal taxes for the donated product. Failure to do so could lead to suspension, revocation, or a fine not to exceed the statutory maximum.

History

Authority: T.C.A. §§ 57-131, 57-132, 57-1-209, 57-3-104, 57-3-303, 57-4-201, 57-701 through 57-707, 57-818, and Chapter 147, Public Acts of 2017.
Administrative History: Original rule certified June 7, 1974. Amendment by Public Chapter 261; effective July 1, 1983. Amendment filed May 10, 1983; effective August 15, 1983. Repeal filed March 10, 2010; effective May 8, 2010. Repeal and new rules filed January 25, 2019; to have become effective April 25, 2019. However, the Government Operations Committee filed a 60-day stay of the effective date of the rules; new effective date June 24, 2019.

Tenn. Comp. R. & Regs. 0100-03-.21 NONCONTIGUOUS PREMISES OF MANUFACTURERS

(1) A manufacturer licensed under T.C.A § 57-3-202 shall be permitted to have a noncontiguous area for storage of spirits as long as such noncontiguous premises have been authorized by the United States Alcohol and Tobacco Tax and Trade Bureau (“TTB”).

(2) No application or application fee is required to establish this noncontiguous premises with the Commission and only the basic details of the location and a floor plan of such noncontiguous premises are required in addition to a copy of proof of TTB approval.

(3) Manufacturers shall notify the Commission within thirty (30) days after commencing use of this noncontiguous premises, or sooner if preferred by the manufacturer.

History

Authority: T.C.A. §§ 57-1-209, 57-2-104, 57-3-104, 57-3-104(c)(4), 57-3-202, and 57-4-201(a)(2).
Administrative History: Original rule filed January 14, 1978; effective February 13, 1978. Amendment filed October 15, 1991; effective January 29, 1992. Amendment filed December 4, 1996; effective April 30, 1997. Repeal filed March 10, 2010; effective June 8, 2010. Repeal and new rules filed January 25, 2019; to have become effective April 25, 2019. However, the Government Operations Committee filed a 60-day stay of the effective date of the rules; new effective date June 24, 2019.

Tenn. Comp. R. & Regs. 0100-03-.22 PRIVATE EVENTS

A license or permit is not required for an event where alcoholic beverages are served if:

(1) The event is private and includes a bona fide guest list restricting access to invited guests only;

(2) The hosts or bona fide guests of the event are providing all of the alcoholic beverages;

(3) All alcoholic beverages are served without charge;

(4) There is no admission cost for the event, including ticket price, required donation, or door charge; and (5) There is no commercial purpose related to the sale, marketing, or promotion of alcoholic beverages for the private party or event.

History

Authority: T.C.A. §§ 57-3-104, 57-4-101, 57-4-201, and Chapter 147, Public Acts of 2017.
Administrative History: Original rules filed January 25, 2019; to have become effective April 25, 2019. However, the Government Operations Committee filed a 60-day stay of the effective date of the rules; new effective date June 24, 2019.

Tenn. Comp. R. & Regs. 0100-03-.23 RECTIFYING

(1) The definition of “rectifier” in T.C.A § 57-3-101 includes anyone who blends alcoholic beverages with other ingredients or alcoholic beverages as long as such operations are permitted under and operated in compliance with the rules and regulations of the Alcohol and Tobacco Tax and Trade Bureau.

(2) An applicant for license under T.C.A § 57-3-202 shall not be required to designate whether they are a distiller, a rectifier, or both.

History

Authority: T.C.A. §§ 57-3-101, 57-3-104, 57-3-202, and 57-3-207.
Administrative History: Original rules filed January 25, 2019; to have become effective April 25, 2019. However, the Government Operations Committee filed a 60-day stay of the effective date of the rules; new effective date June 24, 2019.

Tenn. Comp. R. & Regs. 0100-03-.24 LICENSURE APPLICATIONS

(1) Each applicant that applies for a license under Title 57 must pay to the Commission a onetime, nonrefundable fee in the amount of three hundred dollars ($300.00), excluding temporary licenses applied for by non-profit e ntities, unless otherwise specified in statute.

(2) Renewal applications must be submitt ed in a manner specified by the Commission, in which the licensee acknowledges and accepts TABC r ules and regulations. Renewal applicants are required to submit the renewal fee at the time of application. The renewal process is complete when the Tennessee Alcoholic Beverage Commission issues an updated license that is valid for one (1) year from the prior license expiration date.

History

Authority: T.C.A. §§ 57-3-202, 57-3-203, 57-3-204, and 57-3-213.
Administrative History: New rule filed February 9, 2024; effective May 9, 2024.

Chapter 0100-04 Rules of Procedure for Hearing Contested Cases

Tenn. Comp. R. & Regs. 0100-04-.01 GENERAL PROCEDURES FOR CONTESTED CASES

(1) Except as otherwise provided herein, all contested matters before the Commission will be conducted in accordance with T.C.A. §§ 4-5-301 et seq., applicable provisions of Title 57 of the Tennessee Code, with these Rules, and with the Rules of the Secretary of State Chapter 1360-04-0l.

(2) Eligibility to appeal. Any person with legal standing, and who meets the requirements of Title 57 of the Tennessee Code as a licensee/permittee may petition the Commission for a contested matter hearing to appeal an Initial Order of revocation, suspension or civil penalty imposed upon the licensee/permittee by an Administrative Law Judge or TABC Hearing Officer sitting alone. All other appeals and/or review of actions of the Commission shall be conducted pursuant to the applicable provisions of Title 57 of the Tennessee Code.

History

Authority: T.C.A. §§ 4-5-217, 4-5-219, and 57-1-102.
Administrative History: Original rule filed November 22, 1978; effective January 8, 1979. Repeal and new rule filed October 14, 2014; effective January 12, 2015.

Tenn. Comp. R. & Regs. 0100-04-.02 CONTESTED CASES BEFORE ADMINISTRATIVE LAW JUDGES OR TABC HEARING

OFFICERS SITTING ALONE.

(1) With the exception of declaratory orders referenced below, all petitions for a contested matter hearing shall be routinely referred to the Administrative Procedures Division, Department of State for hearing before an Administrative Law Judge sitting alone on behalf of the Commission. However, the Commission retains the right to hear any particular contested matter on its own behalf, or before a properly designated TABC Hearing Officer.

(2) In all matters held in accordance with the contested matter provisions of the Uniform Administrative Procedures Act, compiled in Title 4, Chapter 5, Part 3 of the Tennessee Code, 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, whether heard by an Administrative Law Judge or a properly designated TABC Hearing Officer sitting alone, or by the full Agency, the petitioner and other parties, with the exception of the Commission, shall bear the actual and reasonable costs associated with the contested matter including, but not limited to, Secretary of State Administrative Procedures Division, docketing, filing, judges and other costs, cost for all depositions, court reporters, transcriptions, costs incurred and assessed for the time of the prosecuting attorneys, investigators, expert witnesses, administrative law judges, TABC hearing officer and any other persons involved in the investigation, prosecution and hearing of the action. If an Initial Order of an Administrative Law Judge or properly designated TABC Hearing Officer is to be reviewed by the full Commission, whether such review is requested by the party/licensee/permitee or the TABC staff, the original transcript and one copy of the transcript for each member of the Commission shall be provided to the Commission by the other parties/licensees/permittees which cost shall be borne by said party/licensee/permittee and not by the Commission. Other costs of the proceeding, including the Administrative Law Judge’s or TABC Hearing Officer’s costs shall be assessed by the Commission against the other party/licensee/permittee in accordance with T.C.A § 57-1-213.

(3) Whenever it is necessary to determine the actual and reasonable costs associated with the contested matter, the TABC director, assistant director or staff attorney shall file a sworn affidavit with the Administrative Law Judge or TABC Hearing Officer setting forth an itemized statement of the services rendered, including, but not limited to, the costs associated with the Secretary of State Administrative Procedures Division for docketing, filing, judges and other costs; cost for all depositions, court reporters and transcriptions; costs incurred and assessed for the time of the prosecuting attorneys, investigators, expert witnesses, administrative law judges, TABC hearing officer and such other persons involved in the investigation, prosecution and hearing of the contested matter as well as the time rendered for each service. The TABC shall make a suggestion of the fee to be awarded along with such other statement(s) of other pertinent facts including but not limited to that required by Tenn. Sup.

Ct. R. 8, RPC 1.5, applicable case law, and such other information as may be requested by the Administrative Law Judge or TABC Hearing Officer. The Administrative Law Judge or TABC Hearing Officer shall then award the actual and reasonable costs associated with the contested matter based on the then prevailing rate imposed by the Secretary of State Administrative Procedures Division and the actual costs for all depositions, court reporters, transcriptions and such other persons, (including prosecutors, investigators, and expert witnesses) involved in the investigation, prosecution and hearing of the contested matter.

(4) Unless otherwise agreed by the parties, at the beginning of all contested matter hearings, Commission counsel shall provide a summary of what the case is about, and introduce into evidence the application and/or Tennessee Alcoholic Beverage Commission license/permit.

In no event shall this provision mean that the Commission is a neutral party in contested matters, or that its counsel represents the interests of any party other than the Tennessee Alcoholic Beverage Commission.

(5) In all matters, whether heard by an Administrative Judge or properly designated TABC Hearing Officer sitting alone, or by the full Commission, the party petitioning for such hearing shall present its case first, unless the parties agree otherwise.

History

Authority: T.C.A. §§ 4-5-202, 4-5-310, 4-5-314, 57-1-102, 57-1-213, 57-3-214, and 57-4-201(a)(4).
Administrative History: Original rule filed October 14, 2014; effective January 12, 2015.

Tenn. Comp. R. & Regs. 0100-04-.03 COMMISSION REVIEW OF INITIAL ORDERS

(1) An Initial Order issued by an Administrative Law Judge or TABC Hearing Officer, sitting alone, may be reviewed by the Commission pursuant to T.C.A §§ 4-5-301, et seq., these Rules, and the Rules of the Secretary of State Chapter 1360-04-01. The Commission may, in its discretion, decline to exercise any review of an Initial Order issued by an Administrative Law Judge or TABC Hearing Officer, in which event the Initial Order issued by an Administrative Law Judge or TABC Hearing Officer shall become a Final Order as provided by the Uniform Administrative Procedures Act.

(2) In such a review proceeding, the Commission’s review is strictly limited to the record which was developed before the Administrative Law Judge or TABC Hearing Officer. No additional evidence is to be received or considered by the Commission.

(3) Such a review proceeding is in the nature of appellate review. Each party will be given the opportunity to file a brief which should specify what action the party maintains the Commission should take on the Initial Order. The Commission may place reasonable page limitations on such briefs to be determined on a case by case basis depending on the number and complexity of the issues to be reviewed.

(4) In such a review proceeding, each party will normally be limited to oral argument of fifteen (15) minutes in length, including rebuttal.

(5) At the conclusion of the review proceeding the Agency may decide that the Initial Order should be adopted in its entirety, or it may make such modifications to the Initial Order as it deems appropriate. Alternatively, the Agency may take the case under advisement, and subsequently reconvene, after reasonable notice to the parties, to hold its public deliberations and to render a Final Order.

History

Authority: T.C.A. §§ 4-5-202, 4-5-217, 4-5-310, 4-5-314, and 57-1-102.
Administrative History: Original rule filed October 14, 2014; effective January 12, 2015.

Tenn. Comp. R. & Regs. 0100-04-.04 DECLARATORY ORDERS

(1) Any affected person may petition the Commission for a declaratory order, as provided in T.C.A. § 4-5-223, as to the interpretation, validity, or applicability of a statute or rule within the primary jurisdiction of the Commission. Such petition shall be filed with the Commission in duplicate, and must specifically identify the statute or rule at issue, and the nature of the ruling sought.

(2) A petition for declaratory order is viewed as primarily involving questions of law and statutory or rule interpretation. The parties should strive to limit the amount of evidence presented, and to stipulate the facts to the fullest extent possible.

(3) In the event the petition for declaratory order arises out of the Commission’s action on a specific project or issue, the petition for declaratory order shall be filed within thirty (30) days of the date of the Commission meeting at which the action at issue was taken.

(4) No person may file a petition for declaratory order as to any action or issue which is the subject of a pending or completed contested case proceeding involving the same person.

History

Authority: T.C.A. §§ 4-5-202, 4-5-217, 4-5-223, and 57-1-102.
Administrative History: Original rule filed October 14, 2014; effective January 12, 2015.

Chapter 0100-05 Fines

Tenn. Comp. R. & Regs. 0100-05-.01 PURPOSE

(1) In any case where the Alcoholic Beverage Commission is given the power to suspend or revoke any license or permit issued pursuant to Title 57, Tennessee Code Annotated, the Commission may, in the alternative to suspension or revocation, impose a fine as set out hereafter.

(2) Fines may be used to informally remedy a matter by written consent of all parties to the matter.

History

Authority: T.C.A. §§ 57-1-201 and 57-1-209.
Administrative History: Original rule filed December 9, 199; effective January 10, 1983. Amendment repealing and replacing the rule was filed March 10, 2010; effective June 8, 2010.

Tenn. Comp. R. & Regs. 0100-05-.02 VIOLATIONS

(1) If one or more violations result from one illegal act or set of circumstances, the fine for each individual violation may not exceed the maximum fine for any of the involved categories of licenses.

(2) Each separate offense of multiple violations occurring at the same time, not arising from the same illegal act or set of circumstances, may result in individual fines being levied at the maximum for the categories of licensees.

(3) Repeat occurrences of the same violation by a licensee within a license year may result in separate fines for each violation.

History

Authority: T.C.A. §§ 57-1-201 and 57-1-209.
Administrative History: Original rule filed December 9, 1992; effective January 10, 1983. Amendment repealing and replacing the rule was filed March 10, 2010; effective June 8, 2010.

Tenn. Comp. R. & Regs. 0100-05-.03 SCHEDULE OF RANGE OF FINES FOR VIOLATIONS BY PERMITTEES FOR

CONSUMPTION OF ALCOHOLIC BEVERAGES ON THE PREMISES, PURSUANT TO T.C.A. § 57-4- 201.

(1) The following violations may result in fines from a minimum of two hundred dollars ($200.00) to the maximum statutorily allowed.

FINES CHAPTER 0100-05-.01

(a) Sale of alcoholic beverages for consumption of the premises as prohibited by T.C.A. § 57-4-203(e).

(b) Giving away alcoholic beverages contrary to T.C.A. § 57-4-203(e).

(c) Selling or giving away alcoholic beverages or allowing the same to be consumed contrary to Rule 0100-01-.03(2) [after hours].

(d) Selling alcoholic beverages to person who are visibly intoxicated contrary to T.C.A. § 57-4-203(c).

(2) The following violations may result in fines ranging from a minimum of one hundred dollars ($100.00) to the maximum statutorily allowed.

(a) Advertising the availability of alcoholic beverages on signs on or adjacent to the exterior of such a licensed premises contrary to T.C.A. § 57-4-203(a).

(b) Failure to comply with T.C.A. § 57-4-203(b)(3), relative to not employing persons to dispense or serve alcoholic beverages without a liquor by the drink employee permit.

(3) The following violations may result in fines ranging from a minimum of three hundred dollars ($300.00) to the maximum statutorily allowed.

(a) Sale of alcoholic beverages to minors in violation of T.C.A. § 57-4-203.

(b) Failure to comply with Rule 0100-01-.03(7), relative to licensees’ responsibility for law and order in licensed premises.

(4) Buying alcoholic beverages from sources other than a licensed wholesaler may result in a fine of one thousand five hundred dollars ($1,500.00), or to the maximum statutorily allowed.

(5) Allowing persons under the age of 18 years to dispense, serve or sell alcoholic beverages, contrary to T.C.A. § 57-4-203, may result in a fine ranging from four hundred dollars ($400.00) to the maximum statutorily allowed.

(6) All other violations of the rules of the Commission or of Tennessee statutes not specifically listed above may result in a fine ranging from one hundred dollars ($100.00) to the maximum statutorily allowed.

History

Authority: T.C.A. §§57-1-201 and 57-1-209.
Administrative History: Original rule filed December 29, 1982; effective January 10, 1983. Amendment repealing and replacing rule was filed March 10, 2010; effective June 8, 2010.

Tenn. Comp. R. & Regs. 0100-05-.04 SCHEDULE OF RANGE OF FINES FOR VIOLATIONS BY RETAILERS LICENSED

UNDER T.C.A. § 57-3-204.

(1) The following violations may result in fines from a minimum of one hundred dollars ($100.00) to a maximum seven hundred and fifty dollars.

(a) Improper use of a sign or bill board as prohibited by Rule 0100-03-.05(2)(e).

FINES CHAPTER 0100-05-.01

(b) Failure to maintain proper records as required by Rule 0100-03-.14(2).

(c) Employing persons to dispense alcoholic beverages who do not possess or have on his person the employee permit required by T.C.A. § 57-3-204.

(d) Soliciting business as prohibited by Rule 0100-03-.11(3).

(e) Violation of direct mail advertising prohibition contained in Rule 0100-03-.03.

(2) The following violations may result in fines from a minimum of two hundred dollars ($200.00) to a maximum of seven hundred and fifty dollars ($750.00).

(a) Giving away any items of value contrary to Rule 0100-03-.11(3)(b).

(b) Storing alcoholic beverages for another retailer contrary to Rule 0100-03-.14(8).

(c) Consuming or allowing others to consume alcoholic beverages within the licensed premises contrary to Rule 0100-03-.16(9).

(d) Keeping or allowing unsealed containers of alcoholic beverages within the licensed premises contrary to Rule 0100-03-.16(10).

(e) Purchasing alcoholic beverages from other than a licensed wholesaler contrary to T.C.A. §57-3-404(b).

(f) Purchasing alcoholic beverages while on a no-buy status contrary to Rule 0100-03-.17.

(g) Selling alcoholic beverages before or after authorized hours contrary to T.C.A. § 57-3- 406(e).

(h) Violation of 0100-03-.14(9) relative to the sale of “lugs” or pre-sacking of liquor.

(3) Selling alcoholic beverages on credit contrary to T.C.A. § 57-3-404(g) or purchasing alcoholic beverages in combination with other retailers contrary to Rule 0100-03-.16 may result in the imposition of a fine from a minimum of three hundred dollars ($300.00) to a maximum of seven hundred and fifty dollars ($750.00).

(4) Selling alcoholic beverages at wholesale contrary to T.C.A. § 57-3-404, operating another business in conjunction with a liquor store contrary to T.C.A. § 57-3-404, or selling alcoholic beverages to a person known to be a minor contrary to T.C.A. § 57-3-406 will result in a fine of seven hundred and fifty dollars.

(5) Any other violations of law or rule which are not specifically listed above may result in a fine from a minimum of one hundred dollars ($100.00) to a maximum of seven hundred and fifty dollars ($750.00).

History

Authority: T.C.A. §§57-1-201 and 57-1-209.
Administrative History: Original rule filed December 29, 1982; effective January 10, 1983. Amendment repealing and replacing the rule was filed March 10, 2010; effective June 8, 2010.

Tenn. Comp. R. & Regs. 0100-05-.05 SCHEDULE OF RANGE OF FINES FOR VIOLATIONS BY WHOLESALERS LICENSED

PURSUANT TO T.C.A. § 57-3-203.

(1) The following violations by a licensed wholesaler may result in a fine from a minimum of two hundred dollars ($200.00) to the maximum statutorily allowed:

FINES CHAPTER 0100-05-.01

(a) Giving to any retailer or his employee anything of value as prohibited by Rule 0100-03- .11.

(b) Selling alcoholic beverages on consignment or upon condition contrary to Rule 0100- 03-.15(2)(a).

rule contrary to Rule 0100-03-.15.

(d) Delivery of alcoholic beverages in improper vehicles contrary to Rule 0100-03-.10(2).

(e) Failure to see that persons dispensing alcoholic beverages in the licensee’s place of business have employee permits and that the permits are on the employee or the licensees’ premises as required by the T.C.A. § 57-3-203.

(2) The following violations may result in a fine from a minimum of one thousand dollars ($1,000.00) to the maximum statutorily allowed:

(a) Selling alcoholic beverages to a licensee in a “no buy” status contrary to Rule 0100-03- .17(6).

(b) Delivering alcoholic beverages to an unauthorized location contrary to Rule 0100-03- .10.

(d) Purchasing alcoholic beverages from other than an appropriately licensed source contrary to T.C.A. § 57-03-404(a).

(3) Failure to obtain proper representative or salesman permits and to see that such permits are kept on the person of such employee or upon the premises of such licensee at all times may result in a fine from a minimum of four hundred dollars ($400.00) to the maximum statutorily allowed.

(4) Employing individuals who are underage may result in a fine from a minimum of five hundred dollars ($500.00) to the maximum statutorily allowed.

(5) All other violations of statute or rule may result in a fine from a minimum of one hundred dollars ($100.00) to the maximum statutorily allowed.

History

Authority: T.C.A. §§57-1-201 and 57-1-209.
Administrative History: Original rule filed December 9, 1982; effective January 10, 1983. Amendment repealing and replacing the rule was filed March 10, 2010; effective June 8, 2010.

Tenn. Comp. R. & Regs. 0100-05-.06 SCHEDULE OF RANGE OF FINES FOR VIOLATIONS BY MANUFACTURERS

LICENSED UNDER T.C.A. § 57-3-202 OR CHAPTER 2 OF TITLE 57 OF THE CODE.

(1) Any violation of law or regulation by a manufacturer or distiller may result in a fine ranging from a minimum of one hundred dollars ($100.00) to the maximum statutorily allowed.

History

Authority: T.C.A. §§57-1-201 and 57-1-209.
Administrative History: Original rule filed December 9, 1982; effective January 10, 1983. Amendment repealing and replacing the rule was filed March 10, 2010; effective June 8, 2010. FINES CHAPTER 0100-05-.01

Tenn. Comp. R. & Regs. 0100-05-.07 RESPONSIBLE VENDOR

(1) The fines established in this Chapter 5 may be mitigated and the maximum fine may be one half of the amounts specified therein where the licensee or permittee can establish the following:

(a) The licensee or permittee holds a valid license or permit pursuant to T.C.A. §§ 57-3- 202, 203, 204, 207 or 57-4-101.

(b) The licensee or permittee has a written policy requiring all employees to complete a course in alcohol awareness which course includes training on the laws and regulations of the Commission, methods of recognizing and dealing with underage customers.

(c) The licensee or permittee has a written policy requiring periodic refresher training as noted above for all employees involved in the sale, purchase or distribution of alcoholic beverages no less frequently than every twelve (12) months and can prove that the periodic refresher training has been conducted.

(d) The licensee or permittee conducts periodic meetings with its staff and employees involved in the sale and distribution of alcoholic beverages to review Tennessee statutes and the rules and regulations of the Commission. Licensee or permittee must be able to prove that periodic meetings have been where the review has occurred (2) The mitigation provided under Section (1) above shall be available to a licensee or permittee no more frequently than once per year.

(3) Any licensee or permittee seeking to apply this mitigation program must retain employment and responsible contemporaneous training records adequate to demonstrate compliance with this part.

History

Authority: T.C.A. §§ 57-1-201 and 57-1-209.
Administrative History: Original rule filed March 10, 2010; effective June 8, 2010.

Chapter 0100-06 Intra-Industry Conduct and Regulations

Tenn. Comp. R. & Regs. 0100-06-.01 DEFINITIONS

(1) General. As used in this chapter, unless the context otherwise requires, terms have the meanings given in this section. Any other term defined in Title 57 of the Tennessee Code Annotated shall have the meaning assigned to it by that Title.

(2) Consignment Sales. The term “consignment sales” shall mean arrangements where the trade buyer is under no obligation to pay for distilled spirits or wine until they are sold by the trade buyer.

(3) Equipment and Supplies. The term “equipment and supplies” shall include, but is not limited to, glassware (other than glassware bearing conspicuous and substantial advertising matter which is a consumer advertising specialty or similar containers made of different material), dispensing accessories, and carbon dioxide (and other gases used in dispensing equipment), pouring racks, and other similar items used to conduct a retailer’s business. “Dispensing Accessories” include, but are not limited to, standards, faucets, cold plates, rods, vents, taps, tap boxes, tap standards, hoses, washers, couplings, gas gauges, vent tongues, shanks, and check valves.

(4) Exchange. The transfer of distilled spirits, wine, or other products from a trade buyer to an industry member with other product taken as a replacement.

(5) Industry Member. The term “industry member” shall mean any person engaged in business as a manufacturer, distiller, rectifier, blender, non-resident seller, non-manufacturer nonresident seller, or other producer, or as an importer, or wholesaler, of distilled spirits, or wine, or as a bottler, or warehousemen and bottler, of distilled spirits, licensed in the state of Tennessee.

(6) Product. The term “product” shall mean distilled spirits, wine, or alcoholic beverages, as defined in Title 57 of the Tennessee Code Annotated.

(7) Product Display. The term “product display” shall mean any wine racks, bins, barrels, casks, shelving, and the like from which distilled spirits, wine, and beverages are held, shelved, displayed, and sold.

(8) Retailer. The term “retailer” shall mean any person engaged in the sale of distilled spirits, wine, or alcoholic beverages to consumers, licensed in the state of Tennessee, whether such sales are made for consumption on or off the premises where sold.

(9) Retail Establishment. The term “retail establishment” shall mean any premises where distilled spirits, wine, or alcoholic beverages are sold or offered for sale to consumers, whether for consumption on or off the premises where sold.

(10) Return. The transfer of distilled spirits, wine, or other product from a trade buyer to the industry member from whom they were purchased, for cash or credit.

(11) Trade Buyer. Any person who is a wholesaler or retailer of distilled spirits, wine, or other product.

History

Authority: T.C.A. §§ 57-1-201, 57-1-209, and 57-3-104.
Administrative History: Original rule filed September 9, 1983; effective October 11, 1983. Amendment repealing and replacing the rule was filed March 10, 2010; effective June 8, 2010. Repeal and new rules filed January 25, 2019; to have become effective April 25, 2019. However, the Government Operations Committee filed a 60-day stay of the effective date of the rules; new effective date June 24, 2019.

Tenn. Comp. R. & Regs. 0100-06-.02 GENERAL PROHIBITIONS

(1) Except as provided in Rule 0100-03-.16, industry members are prohibited from acquiring or holding any interest, directly or indirectly, in any license (state, county, or municipal) with respect to the premises of a retailer.

(2) Except as provided in Rule 0100-03-.16, industry members are prohibited from acquiring any interest, directly or indirectly, in real or personal property owned, occupied, or used by a retailer in the conduct of the business.

(3) Subject to the exceptions listed herein, industry members, or any representative thereof, are prohibited from furnishing, giving, renting, lending, or selling to the retailer, and the retailer is prohibited from accepting any equipment, fixtures, signs, supplies, money, services, or other thing of value. The furnishing of free warehousing by delaying delivery of distilled spirits, wine, or alcoholic beverages or by storing such for a retailer by an industry member is prohibited.

(4) Industry members, or any representative thereof, are prohibited from paying or crediting the retailer, and the retailer is prohibited from accepting any advertising, display, or distribution service, whether or not the advertising, display or distribution service received is commensurate with the amount paid by the retailer.

(5) An industry member or any representative thereof is prohibited from requiring a trade buyer to take and dispose of any quota of distilled spirits, wine, or malt beverages.

(6) A requirement that a retailer purchase one product in order to purchase another is prohibited.

This includes combination sales if one (1) or more products may be purchased only in combination with other products and not individually. However, an industry member is not prohibited from selling at a special combination price, two (2) or more kinds of brands of products to a retailer, provided that:

(a) The retailer has the option of purchasing either product at the usual price; and (b) The retailer is not required to purchase any product he or she does not want.

(7) No retailer shall obtain alcoholic beverages from any source not designated to sell that brand under the brand registration statute, T.C.A. § 57-3-301.

(8) No manufacturer, importer, non-resident seller, non-manufacturing non-resident seller or any representative thereof – e.g. third party marketing entities – shall solicit orders in any manner for alcoholic beverages from anyone in this state except those holding wholesale licenses.

The marketing, advertising, or promoting, or the encouraging of the public to purchase the manufacturer’s, non-resident seller’s, or non-manufacturer non-resident seller’s product, does not constitute soliciting an order and does not require a permit.

(9) It is unlawful for one (1) industry member to sell, offer for sale, or contract to sell to any trade buyer, or for any such trade buyer to purchase, or contract to purchase any products:

(a) On consignment; or (b) Under conditional sale; or (c) With the privilege of return; or (d) On any basis other than a bona fide sale; or (e) If any part of the sale involves, directly or indirectly, the acquisition by such person of other products from the trade buyer or the agreement to acquire other products from the trade buyer. Transactions involving the bona fide return of products for ordinary and usual commercial reasons arising after the product has been sold are not prohibited.

(10) (a) Tied Sales Prohibited. A sale in which any part of the sale involves, directly or indirectly, the acquisition by the industry members from the trade buyer, or the agreement, as a condition to present or future sales, to accept other products from the trade buyer is prohibited.

(b) Exchange. The exchange of one product for another is prohibited as a sales transaction conditioned on the acquisition of other products. However, the exchange of a product for equal quantities (case for case) of the same type and brand of product, in containers of another size is not considered an acquisition of “other” products and is not prohibited if there was no direct or implied privilege of return extended when the product was originally sold. Industry members may make price adjustments on products eligible for exchange under this paragraph.

(c) Exclusion. An industry member, or any representative thereof – e.g. third party marketing entities – shall not require, nor may a retailer request, offer, and/or accept an exclusive arrangement wherein the retailer agrees, in exchange for money, services, or any other thing of value from the industry member, to offer for sale the industry member’s product to the exclusion of other related products.

History

Authority: T.C.A. §§ 57-1-201, 57-1-209, 57-3-104, 57-3-202, 57-3-210, 57-3-405, 57-3-604, and 57-4- 201 and Chapter 371, Public Acts of 2017.
Administrative History: Original rule filed September 9, 1983; effective October 11, 1983. Amendment repealing and replacing the rule was filed March 10, 2010; effective June 8, 2010. Repeal and new rules filed January 25, 2019; to have become effective April 25, 2019. However, the Government Operations Committee filed a 60-day stay of the effective date of the rules; new effective date June 24, 2019.

Tenn. Comp. R. & Regs. 0100-06-.03 EXCEPTIONS TO GENERAL PROHIBITIONS

(1) General. An industry member or any representative thereof – e.g. third party marketing entities may furnish a retailer equipment and supplies, signs, posters, place cards, decorations, devices, statuettes, or geographic displays (printed, painted, or electric) for point-of-sale advertising, and services or other things of value in accordance with the exceptions provided in this part and may install or set up such materials in the windows or elsewhere in the interior of a retail establishment. The cost limitations imposed in this rule will be deemed adjusted upon any modification in a similar rule made by the Trade and Taxation Bureau of the United States Department of the Treasury.

(2) Product Displays.

(a) General. An industry member may furnish, give, rent, loan, or sell product displays to a retailer, subject to the limitations prescribed in subparagraph (b) of this paragraph.

(b) Conditions and Limitations.

The total value of all product displays furnished by an industry member under subparagraph (a) of this paragraph may not exceed three hundred dollars ($300) or current federal limits per brand in use at any one time in any one retail establishment. The value of a product display is the actual cost to the industry member who initially purchased it. Transportation and installation costs are excluded for the purposes of this calculation.
Industry members may not pool or combine their dollar limitations in order to provide a retailer a product display valued in excess of three hundred dollars ($300) or current federal limits per brand.
Product displays shall bear conspicuous and substantial advertising matter about the product or the industry member which is permanently inscribed or securely affixed.
The furnishing, giving, renting, loaning, or selling of such product displays may be conditioned upon the purchase of the products advertised on those displays in a quantity necessary to initially stock such display.

(3) Interior Signs.

(a) General. An industry member or any representative thereof – e.g. third party – marketing entities, may furnish, give, rent, loan, or sell to a retailer inside signs which bear advertising matter. Inside signs include such things as posters, placards, designs, mechanical devices, and window decorations.

(b) Conditions and Limitations. Industry members or any representative thereof – e.g. third party marketing entities – may furnish inside signs to retailers under the following limitations:

The inside sign shall have no secondary value and be of value to the retailer only as advertising.
The inside sign shall be used only in the windows or other interior portions of the retail establishment.
The industry member may not directly or indirectly pay or credit the retailer for displaying the inside sign or for any expense incidental to its operation.

(4) Advertising Service. An industry member or any representative thereof – e.g. third party marketing entities – may list in its advertisement the names and addresses of all retailers selling the alcoholic beverage product(s) of the industry member within the geographic area targeted by the advertisement, provided that:

(a) The advertisement does not also contain the retail price of the product;

(b) The listing is the only reference to the retailers in the advertisement and is relatively inconspicuous in relation to the advertisement as a whole; and (c) The advertisement does not refer only to one retailer or only to retail premises controlled directly or indirectly by the same licensed entity and refers to all retailers selling the alcoholic beverage product(s) of the industry member within the geographic area targeted by the advertisement.

(5) Outside Signs.

(a) General. Subject to local ordinances, an industry member or any representative thereof – e.g. third party marketing entities – may furnish, give, rent, loan, or sell to a retailer outside signs (electrical, mechanical, inflatable, or otherwise) which bear advertising matter.

(b) Conditions and Limitations. Industry members, or any representative thereof – e.g. third party marketing entities – may furnish outside signs to retailers under the following limitations:

The sign must bear conspicuous and substantial advertising matter about the product or the industry member that is permanently inscribed or securely affixed.
The cost of the signs may not exceed four hundred dollars ($400) per brand, which includes installation costs.
The outside sign must be located on the wall or roof of a building adjacent to or occupied by the retailer, or in a retailer's parking lot.
The name and address of the retailer may appear on the outside sign.
The industry member, or any representative thereof – e.g. third party marketing entities – may not directly or indirectly pay or credit the retailer for displaying the sign or for any expense incidental to its operation.

(6) Routine Business Entertainment. Nothing in this chapter shall prohibit an industry member or any representative thereof – e.g. third party marketing entities – from providing a retail licensee or its employee routine business entertainment which is defined as follows:

(a) Meals or beverages;

(b) Concerts, theatre, and arts entertainment;

(d) Entertainment at charitable events;

(e) Private parties;

(f) Transportation and lodging costs associated with any of the forgoing listed under these subparagraphs (a)–(e).

(7) Limitations on Routine Business Entertainment. For the purposes of this section:

(a) Routine business entertainment shall be provided only if such is provided without a corresponding obligation on the part of the retail licensee or on-premise consumption licensee to purchase alcoholic beverages or to provide any other benefit to such industry member or to exclude from sale the products of any other industry member.

(b) There is no maximum dollar amount for providing routine business entertainment designated under subparagraphs (b), (c), or (d) of paragraph (6) of this rule, provided however that transportation pursuant to subparagraph (f) of paragraph (6) or lodging to or for an event under subparagraphs (b), (c), or (d) of paragraph (6) is subject to the three hundred dollar ($300) limit of subparagraph (c) below.

(c) Routine business entertainment expenses under subparagraphs (a), (e), or (f) of paragraph (6) shall not exceed a fair market value of three hundred dollars ($300) per twenty-four (24) hour period for an employee of any retail or on-premise consumption licensee including a self-employed sole proprietor or, if the licensee is a partnership, any partner or employee thereof, or if the licensee is a corporation, any corporate officer, director or shareholder, or the guest of such, or to any third party partnership, LLC, or corporation associated directly or indirectly with the retail or on-premise consumption licensee designed to circumvent the intent of this provision. Further, routine business entertainment expenses as stated above may not exceed six (6) employees/per day from the same licensee.

(d) No person enumerated in subparagraph (c) of paragraph (7) above may be entertained by a wholesaler more than four (4) times per calendar year. The wholesaler shall maintain documentation of all expenditures under this section containing sufficient information to fully document the expenditure.

(e) Routine business entertainment permitted under paragraph (6) above must occur either within the state of Tennessee or, if outside the state of Tennessee, within one hundred (100) miles of the premises of the retail licensee receiving the routine business entertainment.

(8) Retailer Advertising Specialties – Point-of-Sale.

(a) General. An industry member or any representative thereof – e.g. third party marketing entities – may furnish, give, rent, loan, or sell point-of-sale advertising materials to a retailer if such items bear advertising matter and are primarily valuable to the retailer as point-of-sale advertising to attract consumer attention to the products of the industry member who furnished them. Such items include, but are not limited to: posters, placards, designs, inside signs (electric, mechanical, or otherwise), window decorations, trays, coasters, mats, menu cards, meal checks, paper napkins, napkin holders, foam scrapers, back bar mats, placemats, bar utensil caddies, other bar utensils, and items (such as strainers, citrus pressers, and stir rods), tap standards, shakers, stir sticks, ice molds and ice trays, cups, glassware, pitchers, carafes, and similar containers made of other materials, thermometers, clocks, lamps, calendars, alcoholic beverage lists or menus, lighted displays, display mirrors, chalkboards, bulletin boards, dart board backgrounds, table tents, menu and table tent holders, case cards, candles and holders, check and credit card holders, empty flash and jump drives, umbrellas, and apparel (such as shirts, hats, caps, and visors).

(b) Consumer Advertising Specialties. An industry member or any representative thereof – e.g. third party marketing entities – may furnish, give, rent, loan, or sell to a retailer, advertising specialties that are designed to be carried away by consumers, including, without limitation, trading stamps, pouring racks, non-alcoholic mixers, ash trays, bottle or can openers, cork screws, shopping bags, matches, candles and holders, printed recipes (including drink recipes), pamphlets, cards, leaflets, brochures, blotters, post cards, pencils, cups, mugs, glassware, pens, plates, knives, bar utensil caddies, shakers, pitchers, other bar utensils and items (such as strainers, citrus presses and stir rods), apparel (such as shirts, hats, caps, and visors), pins, buttons, key chains, check and credit card holders, empty flash and jump drives, and other branded items of nominal value.

All point-of-sale advertising materials and consumer advertising specialties must bear conspicuous and substantial advertising matter about the product or the industry member which is permanently inscribed or securely affixed. The name and address of the retailer may appear on the point-of-sale advertising materials and on the consumer advertising specialties.
The industry member or any representative thereof – e.g., third party marketing entities – may not directly or indirectly pay or credit the retailer for using or distributing these materials or for any expense incidental thereto.

(9) Wine Lists or Menus. An industry member may furnish, give, rent, loan, or sell alcoholic beverage lists or menus to retailers whether in hard copy, electronic (digital or analogue), or online formats. Nothing in this paragraph (9) authorizes an industry member to provide a retailer with electronic hardware, including iPads, tablets, laptops, or other electronic devices used as menus.

(10) Samples. An industry member may furnish or give a sample of branded distilled spirits, wine, or alcoholic beverages to a retailer (including, without limitation, any of their managers, salespersons, or bartenders) for the purposes of enhancing sales of its products at retail. For each retail establishment, the industry member may give not more than 1.75 liters of any brand of distilled spirits or wine per sampling. If a particular product is not available in a size within the quantity limitations of this section, an industry member may furnish to a retailer the next largest size. An industry member may only provide such a sampling of a specific brand once every three months. An industry member who furnishes a container for sampling or tasting purposes must conspicuously mark the container as “not for resale.”

(11) Combination Packaging.

An industry member or trade buyer (other than a retailer which sells for consumption on the premises or a retail food store) may package, distribute, and sell wine or alcoholic beverages in combination with other related items, other alcoholic beverages, or beer.

(12) Educational Seminars.

An industry member may give or sponsor educational seminars for employees of retailers either at the industry member’s premises or at the retail establishment. Examples would be seminars dealing with use of a retailer’s equipment, training seminars for employees of retailers, or tours of an industry member’s plant premises. This section does not authorize an industry member to pay a retailer’s expense in conjunction with an educational seminar. This paragraph (12) does not preclude providing nominal hospitality during the event.

(13) Stocking, Rotating, Pricing, and Other Services.

(a) A wholesaler, wholesale salesman, or permitted representative thereof may, at a retail package store, with the consent of the retailer, stock, rotate, and affix the price to distilled spirits, wine, or other alcoholic beverages that they sell, provided products purchased from other wholesalers are not altered or disturbed. Such wholesaler may also set up a point-of-sale display, product display, logoed and promotional items (including point-of sale advertising materials and consumer advertising specialties), rearrange or reset that portion of a retail package store as is necessary for the display or placement of its product. In providing the services herein, a wholesaler, wholesale salesman or permitted representative thereof may enter the private or non-public areas of the retail package store.

(b) A wholesaler, a manufacturer, importer, non-resident seller, non-manufacturer nonresident seller, or any representative thereof – e.g. third party marketing entities – may provide recommended shelf plans or shelf schematics for alcoholic beverages, provided that such industry members may not provide anything of value, and retailers may not accept anything of value, in exchange for complying or otherwise using any recommended shelf plan or schematic.

(c) Notwithstanding the restrictions contained herein, a manufacturer, importer, nonresident seller, non-manufacturer non-resident seller, or representative thereof – e.g. third party marketing entities – must deliver point-of-sale advertising materials intended for retail use to a wholesaler’s warehouse, and a manufacturer, importer, non-resident seller, non-manufacturer non-resident seller, or representative thereof – e.g. third party marketing entities – may provide and set up such point-of-sale advertising materials at a retail package store establishment only in consultation and by mutual agreement with the wholesaler from which such point of sale or logoed materials were obtained as to the intended use and recipient(s) thereof. In providing the services herein, a manufacturer, importer, non-resident seller, non-manufacturer non-resident seller or representative thereof – e.g. third party marketing entities – may enter the private or non-public areas of the retail package store. As used in this paragraph, “point-of-sale advertising materials” include point-of-sale displays and refer to the advertising items described under paragraph (1) of Rule 0100-03-.06 and paragraph (8) of this Rule.

“Point of sale advertising materials” do not include product displays (i.e. wine racks, bins, barrels, casks, shelving, and the like from which distilled spirits, wine, and beverages are held, shelved, displayed and sold).

(d) Nothing in this paragraph (13) shall be construed to authorize any services or conduct that is otherwise prohibited for retail food stores in T.C.A. § 57-3-815.

(14) Consumer Promotions – Direct Offerings. A manufacturer, supplier, importer, non-resident seller, non-manufacturer non-resident seller, distiller, winery, or any representative thereof – e.g. third party marketing entities – may offer coupons for refunds and contest prizes, premium offers, and sweepstakes to consumers only on the following basis:

(a) A refund coupon may be distributed to a consumer only as an element of the industry member’s advertising or marketing program through newspapers or magazines, combination packaging, the internet, any other social media platform, neck hangers (on or in caps, cap liners, corks, containers, labels, cartons, cases, or other materials which comes with a purchased alcohol beverage), other point-of-sale advertising (e.g., tear pads that are part of shelf talkers, and case cards), flyers, and by direct mail. Retailers for on-premise consumption may not participate in such programs.

(b) Contest prizes, premium offers, sweepstakes, and like items may be offered by industry members or any representative thereof – e.g. third party marketing entities – directly to consumers at point-of-sale, via neck hangers (on or in caps, cap liners, corks, containers, labels, cartons, cases, or other materials which come with a purchased alcohol beverage) and other point-of-sale advertising (e.g., tear pads that are part of shelf talkers and case cards), through newspapers or magazines, and through the internet, mobile/other electronic communication devices and communications via social media, flyers, and by direct mail in conjunction with combination packaging. Retailers for on-premise consumption may participate in such programs.

(c) Officers, employees, and representatives of wholesalers and retailers are excluded from participation. Nothing of value may be supplied to a trade buyer by an industry member or any representative thereof – e.g. third party marketing entities – to induce or reward participation in any practice allowed hereunder. Industry members or any representative thereof – e.g. third party marketing entities – are prohibited from requiring any retailer to participate in any practice allowed hereunder nor shall a particular retailer or group of retailers be specified by an industry member or any representative thereof – e.g. third party marketing entities – for participation in any practice allowed hereunder.

(d) Notwithstanding subparagraph (c), an industry member or any representative thereof – e.g. third party marketing entities – may award prizes to a retail employee as part of a nationwide or statewide contest, such as a bartender’s contest or drink recipe contest, conducted by the industry member or such representative, in accordance with applicable contest rules; provided, that the entry or award is not based upon retail sales of the sponsor’s product and the industry member has received advance written approval of the contest by the TABC. Such contest shall be open to all retail licensees of the same type – e.g., “on-premise or off-premise” consumption licensees, or both.

(e) No coupon shall be permitted for a refund by a retailer at the point-of-sale (“cents-off” coupons). Refund coupons may be utilized by a manufacturer, supplier, importer, nonresident seller, non-manufacturer non-resident seller, distiller, winery, or any representative thereof – e.g. third party marketing entities – that are redeemable by a consumer’s mailing or transmitting directly to such manufacturer, supplier, importer, non-resident seller, non-manufacturer non-resident seller, distiller, winery, or an authorized redemption agent.

(f) No coupon may be redeemed by, or refund sent to any person who is under the age set by law to purchase, possess, and consume alcoholic beverages in Tennessee. No contest or sweepstakes prize shall be awarded to any person who is under the age set by law to purchase, possess, and consume alcoholic beverages in Tennessee. No premium offer shall be sent to any person who is under the age set by law to purchase, possess, and consume alcoholic beverages in Tennessee.

(15) Equipment and Supplies. An industry member may sell equipment or supplies to a retailer.

(a) Equipment or supplies may be sold at a price not less than the cost to the industry member who initially purchased them and the price must be collected within ten (10) days of the date of sale or rent.

(b) An industry member may install dispensing accessories at the retailer’s establishment as long as the retailer pays the cost of initial installation.

(16) Withdrawals for Special Occasion Licensees.

(a) A licensee may deplete inventories for purposes of contributing to any qualified entity that has applied or will apply for a special occasion license issued by the Commission and may transport such inventories directly to the qualified entity. The donating licensee shall retain records of all such withdrawals showing the amount of inventory withdrawn, the purpose of withdrawal, and the employee responsible for such withdrawal in accordance with Rule 0100-03-.14(1).

(b) In addition to product withdrawals for special occasion licensees, an industry member may further provide such items as promotional items, equipment, fixtures, posters, supplies, sponsorships, etc. to special occasion licensees without being subject to the limitations and restrictions found in Rules 0100-06-.02 and 0100-06-.03. However, any such physical promotional items provided to the special occasion licensee for an event must be returned to the industry member at the conclusion of the event and may not be given to or left for the use of a Tennessee-licensed retailer.

(c) Further, notwithstanding Rule 0100-06-.03(8), industry members may give branded or non-branded advertising specialty items that are designed to be carried away by consumers and that are of nominal value directly to the consumer and/or attendee at a special occasion licensed event. At the conclusion of the event, any remaining branded advertising items must be returned to the industry member.

(17) Retail and Industry Association Activities. An industry member may participate in the following retailer and industry association activities:

(a) Displaying its products at a convention or trade show;

(b) Renting display booth space if the rental fee is the same as paid by all exhibitors at the event;

(d) Purchasing tickets to functions and paying registration fees if the payments or fees are the same paid by all attendees, participants, or exhibitors at the event; and (e) Making payments for advertisements, programs, or brochures issued by retail associations at a convention or trade show if the total payments made by the member and its representatives do not exceed three hundred dollars ($300) per year.

History

Authority: T.C.A. §§ 57-1-201, 57-1-209, 57-3-104, 57-3-202, 57-3-404, and 57-4-201 and Chapter 147, Public Acts of 2017.
Administrative History: Original rule filed September 9, 1983; effective October 11, 1983. Amendment filed October 19, 1984; effective November 18, 1984. Amendment filed July 18, 1989; effective September 1, 1989. Amendment filed February 8, 1994; effective April 24, 1994. Repeal and new rule filed March 10, 2010; effective June 8, 2010. Repeal and new rules filed January 25, 2019; to have become effective April 25, 2019. However, the Government Operations Committee filed a 60-day stay of the effective date of the rules; new effective date June 24, 2019.

Tenn. Comp. R. & Regs. 0100-06-.04 LIMITATIONS ON CREDIT SALES

(1) No alcoholic beverage shall be sold by any wholesaler nor shall any retailer purchase any alcoholic beverages except for cash or on terms requiring payment by the purchaser within ten (10) days.

(2) Each and every delivery of merchandise by a wholesaler to a retailer must be accompanied by an invoice of sale bearing the actual date of the delivery. A wholesaler must keep and maintain a current and accurate accounts receivable ledger as a part of his records.

(3) (a) 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.

(b) Any suspension of deliveries is a credit decision to be made by a wholesaler and a retail licensee.

(4) (a) Wholesalers must deposit all checks for payment of retail accounts no later than the first banking day following actual receipt of said check.

(b) An account paid for by check within the ten-day (10) credit period but which is dishonored for any reason after the ten-day (10) credit period has elapsed is delinquent.

(5) Payment by Electronic Funds Transfer (“EFT”).

(a) Electronic Funds Transfer shall mean any transfer of funds other than a transaction originated by check, draft, or similar paper instrument, which is initiated through an electronic terminal, telephonic instrument, or computer, or magnetic tape so as to order, instruct, or authorize a financial institution to debit or credit an account. Such term includes, but is not limited to, point-of-sale transfers, automated teller machine transactions, direct deposits or withdrawals of funds, and transfers initiated by telephone.

(b) To facilitate payment between wholesale licensees and the retail on-premise and offpremise consumption licensees, Electronic Funds Transfers are an approved method of payment; however, participation by the retail on-premise and off-premise consumption licensees shall be voluntary. The wholesaler shall initiate the Electronic Fund Transfer transmittal. Payment is considered to be made when the funds are deposited in the wholesale licensee’s account.

History

Authority: T.C.A. §§ 57-1-201, 57-1-209, 57-3-104, 57-3-202, 57-3-404, and 57-3-815.
Administrative History: Original rule filed September 9, 1983; effective October 11, 1983. Amendment filed August 15, 1997; effective December 29, 1997. Repeal and new rule filed March 10, 2010; effective June 8, 2010. Repeal and new rules filed January 25, 2019; to have become effective April 25, 2019. However, the Government Operations Committee filed a 60-day stay of the effective date of the rules; new effective date June 24, 2019.

Tenn. Comp. R. & Regs. 0100-06-.05 DUAL PERMITS PROHIBITED

(1) No person shall be issued more than one (1) of the following permits:

(a) Manufacturer or importer representative permit;

(b) Wholesale salesman or representative permit;

(d) Off-premises retail employee’s permit;

(e) On-premises retail employee’s permit; or (f) Manager’s permit.

(2) Notwithstanding the provisions of Rule 0100-06-.05(1) above, any individual may be issued an off-premise retail employee permit, an on-premise server permit, and a manager’s permit, or any combination thereof, if that individual has completed and submitted the appropriate applications. Further, that person must qualify for and meet all the requirements to obtain each permit.

(3) In all cases, the industry member is responsible for the actions of their employees and/or representatives only when such employee and/or representative is acting within the scope of their employment of such industry member, but not within the scope of employment of another industry member.

History

Authority: T.C.A. §§ 57-1-201, 57-1-209, 57-3-104, 57-3-104(c)(4), 57-3-710, and 57-4-202.
Administrative History: Original rule filed September 9, 1983; effective October 11, 1983. Amendment filed August 15, 1997; effective December 29, 1997. Repeal and new rule filed March 10, 2010; effective June 8, 2010. Amendments filed July 7, 2016; effective October 5, 2016. Repeal and new rules filed January 25, 2019; to have become effective April 25, 2019. However, the Government Operations Committee filed a 60-day stay of the effective date of the rules; new effective date June 24, 2019.

Tenn. Comp. R. & Regs. 0100-06-.06 WHOLESALE SALES AND EMPLOYEE PERMITS

(1) Any permit issued by the Commission pursuant to T.C.A. § 57-3-203(d) or (e) shall be valid for a period of five (5) years from its date of issuance.

(2) Any person seeking a permit authorized pursuant to T.C.A. § 57-3-203(d) or (e) shall submit an application in writing to the Commission on forms approved by the Commission.

(3) No application for permit issued pursuant to T.C.A. § 57-3-203(d) or (e) shall be considered unless the application is accompanied by a processing fee of twenty dollars ($20).

History

Authority: T.C.A. §§ 57-1-201, 57-1-209, 57-3-203, 57-3-709, and 57-3-710.
Administrative History: Original rule filed March 10, 2010; effective June 8, 2010. Repeal and new rules filed January 25, 2019; to have become effective April 25, 2019. However, the Government Operations Committee filed a 60-day stay of the effective date of the rules; new effective date June 24, 2019.

Tenn. Comp. R. & Regs. 0100-06-.07 RETAIL EMPLOYEE PERMITS

After the conclusion of business on June 30, 2016, no permit issued pursuant to T.C.A. § 57-3-204(c) shall be issued by the Commission. Any permit issued by such time shall remain in effect and be valid for five (5) years after the permit’s issuance, and any employee of a retail package store who has a valid permit under T.C.A. § 57-3-204(c) on July 1, 2016, shall not be required to be a certified clerk pursuant to T.C.A. § 57-3-818 until that permit expires.

History

Authority: T.C.A. §§ 57-1-201, 57-1-209, 57-3-104, 57-3-104(c)(4), 57-3-204, 57-3-204(c), 57-3-709, and 57-3-710.
Administrative History: Original rule filed March 10, 2010; effective June 8, 2010. Amendment filed December 18, 2015; effective March 17, 2016. Amendments filed July 7, 2016; effective October 5, 2016. Repeal and new rules filed January 25, 2019; to have become effective April 25, 2019. However, the Government Operations Committee filed a 60-day stay of the effective date of the rules; new effective date June 24, 2019.

Tenn. Comp. R. & Regs. 0100-06-.08 NON-RESIDENT SELLER PERMITS

(1) Anyone desiring to import, ship, or transport alcoholic beverages into the State of Tennessee for distribution and/or sale within the State of Tennessee must make application to the Commission for a non-resident seller’s permit. Such application shall include the name of the entity applying for the permit, and the true ownership thereof. Before alcohol may be imported, shipped, or transported into the State of Tennessee for distribution and/or sale within the boundaries of the State of Tennessee, such importer, broker, manufacturer, or supplier of the alcoholic beverage must first have obtained and be issued a non-resident permit by the Commission. Further, before alcohol may be imported, shipped, or transported into the State of Tennessee for distribution and/or sale within the boundaries of the State of Tennessee, such importer, broker, manufacturer, or supplier of the alcoholic beverage must have received from the Tennessee Department of Revenue a brand approval letter.

However, only after the receipt of a non-resident seller permit issued by the Commission may that importer, broker, manufacturer, or supplier, attempt to register their brands with the Tennessee Department of Revenue.

(2) Each non-resident seller permit shall be valid for one (1) calendar year and shall expire on December 31 of that year. It is the responsibility of the permittee to submit a complete application and payment of the annual license fee prior to the expiration of the permit. The expiration date printed on the permit serves as notice of the need to seek the renewal of the permit by the expiration date, and no additional notice is required. Non-resident seller permits will be closed on the business day after expiration if both an application and a license fee have not been received. If the Commission receives an application and license fee prior to the expiration date, closing of the permit will be tolled, and the permit will remain valid until the Commission reviews the application. The applicant shall resolve any outstanding issues and submit any additional documentation to the Commission no later than 30 days after the expiration date. Permits that the Commission does not renew, will close 45 days after the license expiration date, regardless of the date of closure.

(3) Should the non-resident seller change ownership, the new owner must make application for a non-resident seller’s permit as referenced in paragraph (1) above before importing, shipping, or transporting any alcoholic beverages into the State of Tennessee for distribution and/or sale within the state.

History

Authority: T.C.A. §§ 57-1-201, 57-1-209, 57-3-104, 57-3-104(c)(4), 57-3-202, 57-3-213, 57-3-602, and 57-3-605.
Administrative History: Original rule filed March 10, 2010; effective June 8, 2010. Repeal and new rules filed January 25, 2019; to have become effective April 25, 2019. However, the Government Operations Committee filed a 60-day stay of the effective date of the rules; new effective date June 24, 2019. Amendments filed June 2, 2022; effective August 31, 2022.

Tenn. Comp. R. & Regs. 0100-06-.09 PROHIBITION ON DISCRIMINATION

(1) No wholesaler, holding a license issued pursuant to T.C.A. § 57-3-203, shall discriminate, directly or indirectly, in price, in discounts on quantity of merchandise sold, between one retailer and another retailer purchasing wine or alcoholic beverages bearing the same brand or trade name and of like age and quality.

(2) The restrictions imposed in paragraph (1), above, shall not prevent a wholesaler from offering wine or alcoholic beverages to a licensee holding a license issued pursuant to T.C.A. § 57-4- 101, while not offering such wine or alcoholic beverages to any licensee holding a license issued pursuant to T.C.A. § 57-3-204 or 57-3-803 pursuant to a bona fide marketing plan.

(3) Notwithstanding the prohibitions of paragraph (1), above, a wholesaler may change its pricing on any wine or alcoholic beverage to meet competition, respond to bona fide market conditions, or provide a one-time, introductory offer to a retailer to introduce or promote a new product not previously purchased by such retailer.

(4) Nothing herein shall restrict the ability of a wholesaler to provide a discount to a retailer for quantity purchases or special combination offers so long as such discount is available on similar terms to other retailers.

History

Authority: T.C.A. §§ 57-1-201, 57-1-209, 57-3-104, 57-3-202, and 57-4-201.
Administrative History: Original rule filed March 10, 2010; effective June 8, 2010. Repeal and new rules filed January 25, 2019; to have become effective April 25, 2019. However, the Government Operations Committee filed a 60-day stay of the effective date of the rules; new effective date June 24, 2019.

Chapter 0100-07 Production, Sale and Transport of Wine

Tenn. Comp. R. & Regs. 0100-07-.01 APPLICATIONS FOR WINERY AND FARM WINE PRODUCER LICENSES

(1) Application – An application for a license shall be made on forms provided for such purpose by the Commission. In addition to completing and filing such forms, an applicant shall provide the Commission with the following information:

(a) Proof of a right to possession in the proposed licensed premises.

(b) If the applicant is not a sole proprietor, evidence of the legal form in which the business is to be operated and a certificate of existence from the Tennessee Secretary of State.

(d) Approval of appropriate authorities in the jurisdiction where the winery is to be located of the use and occupancy of the building(s).

(e) Completed questionnaires from each owner, partner, member, principal, manager or officer.

(f) Approval of the Tennessee Department of Agriculture.

The application and accompanying documents shall be filed with the Tennessee Alcoholic Beverage Commission.

(2) The license issued hereunder shall apply to only one winery premise as defined hereafter.

(3) No person with any interest in a winery or farm wine producer license shall have any kind of interest (financial, fixtures, furnishings, stock ownership, loans, gifts, securing loans, leases) or participate in the profits either directly or indirectly, in any wholesale or retail alcoholic beverage establishment or any entity possessing a liquor-by-the-drink permit, other than a restaurant or limited service restaurant as authorized pursuant to T.C.A.§ 57-3-207(s)(1).

(4) Transfer. A winery licensee may transfer locations only with the specific approval of the Commission. Such permission shall be sought by filing an application for the new premises along with the information required by Rule 0100-07-.01(a), (d), (e) and (f).

History

Authority: T.C.A. §§ 57-1-209, 57-3-104(c)(4), and 57-3-207.
Administrative History: Original rule filed October 31, 1983; effective November 30, 1983. Amendment repealing and replacing the rule was filed March 10, 2010; effective June 8, 2010. Repeal and new rule filed December 18, 2015; effective March 17, 2016.

Tenn. Comp. R. & Regs. 0100-07-.02 PRODUCTION OF WINE BY WINERY AND FARM WINE PRODUCER LICENSEES

(1) The holder of a winery license may produce and bottle wine as defined by T.C.A. § 57-3 101(24).

(2) The holder of a farm wine producer’s license may cause to be produced wine, provided said wine contains a minimum of ninety-five percent (95%) of the product of vineyards, fruit orchards or fruit gardens grown and harvested at the farm as the wine being sold by the farm wine producer, as set out in T.C.A. §§ 57-3-207(o)(1)(A),(B) & (C) et seq.

(3) Samples of each type of wine produced shall be maintained at the winery or the farm wine producer’s premises for a one year period after bottling.

(4) Except as otherwise specified, “premises” or “licensed premises” shall mean all contiguous property owned or leased by the winery or by the farm wine producer, except for the bonded areas.

(5) Records shall be kept for a period of three calendar years which demonstrate the source of all agricultural products used in the production of wine by a licensee.

History

Authority: T.C.A. §§ 57-1-209, 57-3-104(c)(4), and 57-3-207.
Administrative History: Original rule filed October 31, 1983; effective November 30, 1983. Amendment repealing and replacing the rule was filed March 10, 2010; effective June 8, 2010. Repeal and new rule filed December 18, 2015; effective March 17, 2016.

Tenn. Comp. R. & Regs. 0100-07-.03 SALES OF WINE BY WINERIES AND FARM WINE PRODUCERS

(1) Wineries licensed hereunder in this state may sell on their licensed premises at retail only wine produced on their own premises. Farm wine producers licensed hereunder in this state may sell on their licensed premises at retail only wine produced from the grapes and/or fruits of their vineyard, orchard or fruit garden. Wine sold for consumption on the premises shall be subject to the tax provided in T.C.A. § 57-4-301(c); provided that wine sold at retail in sealed containers for consumption on the premises but not in the bonded areas and samples of wine sold for consumption on the premises shall not be subject to said tax pursuant to T.C.A. § 57- 3-207(t)(2). Samples may be given or sold on the premises except that no such sample shall exceed two ounces per variety for one person on the same day.

(2) Wineries and farm wine producers in this state may sell no more than five (5) cases or sixty (60) liters of bottled wine to any single retail customer in one (1) day.

(3) Winery and farm wine producer licensees are subject to the restrictions contained in Alcoholic Beverage Commission Rules 0100-03-.02 (Advertising Of Wine In Newspapers, Magazines Or Similar Publications), 0100-03-.03 (Advertising Of Distilled Spirits And Wine By Direct Mail), 0100-03-.04 (Advertising Of Distilled Spirits And Wine On Radio And Television) and 0100-03-.20 (Responsibility And Penalties For Violations).

(4) Other than permitted sales or samplings on the licensed premises, and other than pursuant to a self-distribution permit, no winery licensee shall sell or otherwise convey any tax-paid wine to any person, firm or corporation in Tennessee except to a Tennessee licensed wholesaler or in conjunction with a non-profit organization authorized by the Commission to conduct a wine festival as provided at T.C.A. § 57-3-207. This provision shall not prohibit the transfer of wine in bulk from one Tennessee winery to another nor the transfer of wine to farm wine producers.

(5) No licensee shall sell, furnish, give or cause to be sold, furnished or given, any wine to any person under the age of minority as defined by T.C.A. § 57-4-203(b).

(6) Licensees hereunder shall not sell or give away wine between the hours of 12:00 midnight and 8:00 a.m.

(7) Wineries and farm wine producers licensed under provisions of T.C.A. § 57-3-207 are permitted to advertise on billboards and outside signs with locations not restricted to those counties which have legalized the sale of alcoholic beverages under provisions of T.C.A. § 57-3-106. Said billboards and outside signs are subject to the following restrictions:

(a) Information appearing on billboards and outside signs shall be limited to the name of the winery, directions to the winery premises, and products and services offered as authorized by T.C.A. § 57-3-207.

(b) No such billboard or outside sign shall contain statements prohibited by 0100-03-.02 (4).

(c) Local Control. Billboards and outside signs approved herein are subject to reasonable rules and regulations duly adopted by proper governing bodies of the county and city wherein located.

(d) Prior Approval. Billboards and outside signs conforming to the foregoing provisions need not have prior approval of the Commission and prior Commission approval does not sanction any violation of the Tennessee Code, TABC Rules or valid county or city ordinance.

History

Authority: T.C.A. §§ 57-1-209, 57-3-104(c)(4), and 57-3-207.
Administrative History: Original rule filed October 31, 1983; effective November 30, 1983. Amendment filed February 6, 1987; effective March 23, 1987. Amendment repealing and replacing the rule was filed on March 10, 2010; effective June 8, 2010. Repeal and new rule filed December 18, 2015; effective March 17, 2016.

Tenn. Comp. R. & Regs. 0100-07-.04 SATELLITE FACILITIES

(1) A winery or a farm wine producer licensee may have licensed not more than two (2) satellite facility locations. A winery may sell wine manufactured at the winery at its licensed satellite locations. Farm wine producers may sell wine produced from the grapes and/or fruits of their vineyard, orchard or fruit garden at its licensed satellite locations. Samples may be given or sold on the licensed premises at the licensed satellite facility except that no such sample shall exceed two ounces per variety for one person on the same day. Wine and wine samples sold for consumption on the licensed satellite premises shall be subject to the tax provided in T.C.A. § 57-4-301(c).

(2) Satellite facilities are required to obtain permits from the Commission. Satellite facilities may only be located in jurisdictions where it is lawful to manufacture intoxicating liquors.

(3) Wine sold at satellite facilities must be obtained from a wholesaler. Wholesalers may allow wineries and farm wine producers to deliver the wine to the satellite locations. Wholesalers permitting direct shipment shall include the amounts delivered in its inventory, report depletions for purposes to tax collection, and be responsible for the payment of taxes for depletions. Wineries and farm wine producers electing to exercising this delivery method to their respective satellite facilities locations shall advise the Commission of their election to do so and shall advise and receive confirmation from their wholesaler of each delivery, the quantity of delivery and such other information required by the wholesalers for the filing of inventory, reports, taxes etc. with the Tennessee Department of Revenue.

(4) Satellite facilities may sell items authorized to be sold at wineries.

(5) Up to three wineries, each with a total annual wine production of fifty thousand gallons or less, farm wineries, or any combination thereof may combine businesses for the operation of a single satellite facility, provided that such satellite facility shall count against the limit specified in paragraph (1) for each winery or farm winery participating in such satellite facility.

Any violation of any rule or statute by a satellite facility shall be deemed to be a violation by any winery or farm winery that participates in the satellite facility.

History

Authority: T.C.A. §§ 57-1-209, 57-3-104(c)(4), and 57-3-207.
Administrative History: Original rule filed October 31, 1983; effective November 30, 1983. Amendment repealing and replacing the rule was filed March 10, 2010; effective June 8, 2010. Repeal and new rule filed December 18, 2015; effective March 17, 2016.

Tenn. Comp. R. & Regs. 0100-07-.05 RESTAURANTS

(1) A winery licensee or a farm wine licensee may also qualify for and, if qualified, be licensed as a restaurant or limited service restaurant (“restaurant”), if owned by the same person or entity holding the winery or farm wine producer license, and may locate the restaurant either contiguous or non-contiguous to the premises of the winery or farm winery. Such restaurants may serve wine manufactured on the premises of the winery or from the grapes and/or fruits of their vineyard, orchard or fruit garden of the farm wine producer for consumption either on or off the premises of such restaurants. The premises of such a restaurant must be separate and distinct from the premises of the winery or farm winery with an appropriate physical separation between said separate and distinct premises.

History

Authority: T.C.A. §§ 57-1-209, 57-3-104(c)(4), and 57-3-207.
Administrative History: Original rule filed October 31, 1983; effective November 30, 1983. Amendment repealing and replacing the rule was filed March 10, 2010; effective June 8, 2010. Repeal and new rule filed December 18, 2015; effective March 17, 2016.

Tenn. Comp. R. & Regs. 0100-07-.06 SELF DISTRIBUTION

(1) Wineries that produce 50,000 gallons or less and do not have a contract with a wholesaler for distribution rights of the winery’s wines in a county that is located in whole or in part within 100 miles of the winery may obtain a self-distribution license from the Commission. A winery that holds a self-distribution license shall immediately surrender the license if its output during a calendar year exceeds 50,000 gallons or if it contracts with a wholesaler for distribution.

(2) A winery with a self-distribution permit may distribute up to 3,000 cases of wine produced at the winery per calendar year to entities licensed pursuant to Title 57, Chapter 4, Part 1, Tennessee Code Annotated, and located within 100 miles of the licensed winery’s manufacturing premises. The winery is responsible for all taxes and records which are imposed upon a wholesaler pursuant to T.C.A. § 57-3-203 for wine sold pursuant to a selfdistribution permit.

History

Authority: T.C.A. §§ 57-1-209, 57-3-104(c)(4), and 57-3-207.
Administrative History: Original rule filed October 31, 1983; effective November 30, 1983. Amendment repealing and replacing the rule was filed March 10, 2010; effective June 8, 2010. Repeal and new rule filed December 18, 2015; effective March 17, 2016.

Tenn. Comp. R. & Regs. 0100-07-.07 TRANSPORTATION OF WINE PRODUCED BY LICENSED WINERIES AND BY FARM

WINE PRODUCERS.

(1) Wine manufactured by a licensed winery or wine produced from the grapes and/or fruits of a farm wine producers’ vineyard, orchard or fruit garden may be transported from the winery or farm wine producer in any of the following ways:

(a) Pursuant to a sale to a consumer, (b) By common carrier, (c) By the licensed winery or farm wine producer after compliance with T.C.A. § 57-03-403, (d) By a licensed wholesaler, (e) By a winery pursuant to a self-distribution permit.

History

Authority: T.C.A. §§ 57-1-209, 57-3-104(c)(4), and 57-3-207.
Administrative History: New rule filed December 18, 2015; effective March 17, 2016.

Tenn. Comp. R. & Regs. 0100-07-.08 SALE OF OTHER WINE RELATED ITEMS

(1) In addition to those items authorized by T.C.A. § 57-3-207(h)(1), Tennessee licensed wineries, farm wineries, and licensed satellite facilities operated by a Tennessee licensed winery or farm winery, are authorized to sell the following wine related items:

(a) Cork removers, decanters and funnels used in decanting;

(b) Wine glasses;

(d) Pouring aids;

(e) Coasters, bottle stoppers;

(f) Promotional souvenir items imprinted with the winery’s name (e.g. t-shirts);

(g) Wine literature;

(h) Gift-related items—including, but not limited to, cookbooks using wine; dishes/serving items with grape or wine theme, cruets for oil and vinegar, dipping bowls, bread bowls/trays, fruit bowls/trays, cheese trays/serving knives, aprons/kitchen towels/hot pads/napkins with grape or wine theme, wine racks, wine bottle carriers/bags, foil or fabric decorative wine bottle “sacks.”

(i) For consumption on the premises, food, including prepared food and/or unprepared snack food that compliments the serving, sampling, or consumption of wine.

History

Authority: T.C.A. §§ 57-1-209, 57-3-104(c)(4), and 57-3-207.
Administrative History: New rule filed December 18, 2015; effective March 17, 2016.

Tenn. Comp. R. & Regs. 0100-07-.09 STATUTES APPLICABLE TO WINERY LICENSEES

(1) In addition to the regulations contained herein, licensed wineries are governed by the terms of much of T.C.A. Title 57, Chapter 3. In order to clarify which sections within Chapter 3 govern the conduct and licensing of such wineries, the Alcoholic Beverage Commission hereby declares that licensed wineries are subject to the terms of the following sections and subsections of T.C.A. Title 57, Chapter 3:

(a) §§ 57-3-101, 57-3-104, 57-3-105;

(b) §§ 57-3-201; 57-3-202(e); 57-3-207; 57-3-210(a), (d), (e); 57-3-211; 57-3-212; 57-3- 213(a), (b), (c); 57-3-214; 57-3-215; 57-3-221; and (c) § 57-3-409.

(2) Refusal of Cooperation – Any licensee, agent or employee who refuses to open or disclose the records to, or furnish information to, or who furnishes false and/or misleading information to an Agent of the Tennessee Alcoholic Beverage Commission upon any matter relating to or arising out of the conduct of the licensed premises shall subject the license to revocation or suspension.

(3) Licensee Responsible for Law and Order on Licensed Premises. Each licensee will maintain the licensed establishment in a decent, orderly, and respectable manner and in full compliance with federal statutes, Tennessee laws, Commission rules and regulations, and local ordinances and laws in the municipality and/or county where licensed premises are located. Licensees remain responsible for complying with this rule if the licensed owner or operator rents, leases, or otherwise permits another to occupy the licensed premises.

(4) Display of License – Any person, partnership, corporation, or other legal entity holding a winery license issued under Chapter 3 of Title 57, shall prominently display and post, and keep displayed and posted, in the most conspicuous place in the licensed premises, the license so issued.

History

Authority: T.C.A. §§ 57-1-209, 57-3-104, and 57-3-207.
Administrative History: New rule filed December 18, 2015; effective March 17, 2016. Amendments filed February 9, 2024; effective May 9, 2024.

Chapter 0100-08 Rules for Professional Alcohol Server Training

Tenn. Comp. R. & Regs. 0100-08-.01 PURPOSE AND SCOPE

The primary legislative purpose is to prevent intoxication-related deaths, injuries, and other damages through responsible alcohol serving practices and awareness.

History

Authority: T.C.A. §§ 57-1-209, 57-3-104(c)(4), 57-3-212(c), 57-3-705(5), 57-3-710, and 57-4-201.
Administrative History: Original rule filed January 31, 1997; effective April 16, 1997. Amendment repealing and replacing the rule was filed March 10, 2010; effective June 8, 2010.

Tenn. Comp. R. & Regs. 0100-08-.02 DEFINITIONS

(1) Certified Training Program. An alcohol awareness program which has met all requirements and has been approved by the Commission.

(2) Commission. Unless noted otherwise, all reference to the Commission shall be to the Tennessee Alcoholic Beverage Commission.

(3) In-House Training Program. An alcohol awareness training program which is presented exclusively to educate employees of a single business entity or multiple locations/franchise under a common ownership interest.

(4) Law Enforcement Program. An alcohol awareness program which is sponsored and taught by local law enforcement personnel in the performance of their regular duties. Any person may attend such programs.

(5) Public Training Program. An alcohol awareness program which is presented to educate individuals regardless of employer affiliation. Such programs may be presented by either nonprofit or for profit entities. Any trainer within a public training program may choose to conduct the program only for his own employees.

(6) Server. Server is an individual required to have a server permit.

(7) Successful Completion of Program. To successfully complete a training program, an individual must have attended five (5) hours of classroom instruction, scored at least seventy percent (70%) on the written test (or higher if required by the certified program), and paid the appropriate fees.

(8) Trainer. Individual designated by a Certified Training Program, and approved and certified by the Commission to instruct an alcohol awareness program.

(9) Visibly Intoxicated. An impairment of an individual’s mental or physical faculties as a result of drug and/or alcohol consumption accompanied by a perceptible act, series of acts, or by the appearance of an individual which clearly demonstrates such impairment.

History

Authority: T.C.A. §§ 57-1-209, 57-3-104(c)(4), 57-3-212(c), 57-3-710(5), and 57-4-201.
Administrative History: Original rule filed January 31, 1997; effective April 16, 1997. Amendment repealing and replacing the rule was filed March 10, 2010; effective June 8, 2010.

Tenn. Comp. R. & Regs. 0100-08-.03 APPLICATION FOR SERVER PERMITS

(1) Every person seeking a server permit, authorizing that person to sell, serve, or handle alcoholic beverages for consumption on-premises, must apply for a permit in a manner specified by the Commission. A twenty dollar ($20.00) non-refundable application fee is required at the time of application. A cost adjustment factor for permit fees will be updated by the Executive Director of the Commission based upon the consumer price index at regular intervals beginning in January, 2013.

(2) All information submitted in and with the application must be accurate and is submitted under the penalty of perjury. Failure to submit accurate information or documentation is grounds for suspension or revocation of the server permit.

(3) Every complete application for a server permit includes verification from a certified program instructor that the applicant successfully completed a certified course on alcohol awareness within one (1) year of the date of the application.

(a) It is the applicant’s duty to ensure that the alcohol awareness program attended is certified by the Commission. To ensure the program is certified, the applicant may look for the following:

Conspicuous posting of Commission certification license; and 2. All Certified Training Programs shall make the following statement on the cover sheet of its printed training materials: “This program has been certified by the Tennessee Alcoholic Beverage Commission as currently satisfying the requirements of the Alcohol Server Responsibility and Training Act of 1995.”

History

Authority: T.C.A. §§ 57-1-209, 57-3-104, 57-3-212, 57-3-705, 57-3-710, and 57-4-201.
Administrative History: Original rule filed January 31, 1997; effective April 16, 1997. Amendment repealing and replacing the rule was filed March 3, 2010; effective June 8, 2010. Amendment filed December 18, 2015; effective March 17, 2016. Amendments filed February 9, 2024; effective May 9, 2024.

Tenn. Comp. R. & Regs. 0100-08-.04 CERTIFICATION OF TRAINING PROGRAM

(1) Application for Certification. Any entity or individual seeking to have a training program certified shall complete and submit a written application on forms prescribed by the Commission. The application shall disclose the following information:

(a) The complete identity of the entity seeking to have the program certified, including the address, names of all individuals responsible for server training, and the source of the curriculum utilized by the entity.

If the entity is a corporation, a copy of the corporate charter and/or certificate of

authority is required.

If the entity is a partnership, a copy of the certificate filed with the Tennessee Secretary of State’s Office (if a limited partnership), copy of partnership agreement, or other document evidencing formation of such partnership is required.
A listing of all officers’ names and corresponding titles for the applicant.

(b) Complete address of each proposed location for such training at least seven (7) days prior to the training session.

(c) A complete description of the curriculum to be utilized in server training. To be certified a program must offer a curriculum which, at a minimum, contains the following items:

The effect of alcohol on the human body focusing upon these elements:

(i) A complete review of blood alcohol content (BAC);

(ii) Absorption rates and factors affecting the absorption of alcohol;

(iii) The behavioral effects of alcohol: i.e., decrease in reaction and decision making capability;

(iv) Interaction and combined effects of mixing alcohol with legal and/or illegal drugs; and (v) Identification of possible problem drinkers.

Identifying situations in which server intervention is appropriate.
Handling people in a non-confrontational manner. Communications and support from co-workers is necessary.
Suggested responses by servers to situations involving the service of intoxicated and/or underage persons.
A review of current Tennessee laws, rules, and regulations promulgated by the Commission relating to the sale and service of alcoholic beverages and the Alcohol Server Responsibility and Training Act.
A review of appropriate identification including acceptable driver’s licenses, military identification, passports, and other identification cards.

(d) Training Program Format.

Complete training programs must be, at least, three and one-half (3 1/2) hours of instruction, excluding breaks for attendees, in an accessible location. In-person training programs may not be conducted in private homes.
The training program must provide printed training materials to attendees. Once a program has been certified by the Commission, the following statement shall be placed in bold type on the cover sheet of such written materials or manuals:

“This program has approved by the Tennessee Alcoholic Beverage Commission as currently satisfying the requirements contemplated by the Alcohol Server Responsibility and Training Act of 1995.”

The training program must be supervised by qualified and trained instructors, who are present during all training sessions.
At the beginning of each training program, the certified trainer will advise attendees that they may not meet the qualifications for a server permit if they are not at least 18 years of age, have been convicted of any felony within eight (8) years of the date of application, have been convicted of any statute involving the sale of alcoholic beverages, beer, or Schedule I or II controlled substances or any sex-related crime or embezzlement within the previous eight (8) years, had a server permit or a similar permit revoked by the state, a local jurisdiction, or a foreign jurisdiction within the prior five (5) years, and/or had ownership interest in a license or permit that was revoked by the issuing authority within the prior eight (8) years. The certified trainer will refund any fee previously received by any attendee who advises they will not continue with the class after hearing such restrictions.
Upon completion of the presentation, the program must adequately test the comprehension and understanding of the attendees. A passing score of at least seventy (70%) percent will be required from each person attending the training before a certificate shall be issued-unless the certified program requires a higher score.
Alcoholic beverages may not be consumed by the instructor or any attendee during the training program.

(e) All Certified Training Programs shall issue to any attendee who has successfully completed the program, a certificate which includes the following information:

Name of prospective server;
Name of entity providing the training; and 3. Date on which the server-trainee successfully completed the program.

(f) All Certified Training Programs shall permit access to Commission representatives.

Failure to permit access to a Commission representative will result in the program licensee being required to show cause to the Commission why its certification should not be revoked.

(g) Each trainer shall submit a Trainer’s Questionnaire to the Commission and must satisfy the requirements stated therein prior to the actual instruction of individuals.

(h) Each program applicant shall submit to the Commission a copy of all training materials (including video or audio materials used for their program).

(i) Following the program completion, the certified program instructor must provide the Commission a list of all servers that have successfully completed the program—along with a fee of fifteen dollars ($15.00) for each individual.

(2) Each applicant or program licensee seeking to have an alcohol training program certified or renewed by the Commission shall submit a non-refundable fee along with the completed application according to the following schedule:

(a) In House Training Program - $300.00;

(b) Public Training Program - $700.00; or (c) Law Enforcement Program - $300.00.

(3) Each instructor conducting alcohol awareness training classes must submit a one hundred and fifty dollar ($150.00) certification fee to the Commission, along with a completed questionnaire.

(4) Renewal of Program Certification.

(a) Program certification shall be valid for a period of one year from the date of issue.

(b) To prevent interruption of certification, the licensee must fulfill the following requirements prior to expiration date:

Provide the Commission a completed renewal application for certification to conduct a server training course—which includes any amended or updated materials; and 2. Appropriate renewal fee.

(5) Renewal of Instructor Certification.

(a) Instructor certification shall be valid for a period of one year from the date of issue.

(b) To prevent a lapse in certification, the instructor must fulfill the following requirements prior to the expiration date:

Provide the Commission an updated renewal application for certification; and 2. If the instructor is not a program designated instructor, then the instructor must submit a one hundred dollar ($100.00) renewal fee to the Commission.

(6) Neither program nor instructor certifications are transferable. Before a transfer of ownership of the program occurs, that new entity must first make application for certification to the Commission pursuant to the rules and regulations. The new business entity may not begin training until certified by the Commission.

History

Authority: T.C.A. §§ 57-1-209, 57-3-104, 57-3-212, 57-3-705, 57-3-710, and 57-4-201.
Administrative History: Original rule filed January 31, 1997; effective April 16, 1997. Amendment repealing and replacing the rule was filed March 10, 2010; effective June 8, 2010. Amendments filed February 9, 2024; effective May 9, 2024.

Tenn. Comp. R. & Regs. 0100-08-.05 MISCELLANEOUS PROVISIONS

(1) Server Applicants with Special Needs. Persons with special needs (for example, an inability to read and/or write in English, hearing impairment, etc.) must contact the program licensee at least one week in advance of the training date to request specific assistance in completing that program. Notwithstanding any other provision of these rules, the program licensee and the Commission shall endeavor to provide a reasonable accommodation when requested on a case-by-case basis in compliance with state and federal law.

(2) (a) A score of at least seventy percent (70%) is required to satisfy the written examination upon the completion of the training which will entitle the server to the certificate.

However, if a certified program requires a higher test score to successfully complete their program, then the server must meet that program’s test requirement.

(b) Any attendee failing to attain this passing score should contact the program licensee to schedule a second examination within thirty (30) days.

(c) If the second examination is not scheduled with the certified program after failure of the initial exam within the thirty (30) days, then the attendee will be required to attend a second training in its entirety to obtain the certificate.

(3) Commission Training Program. To further implement the policy and standards of the T.C.A. §§ 57-3-701 et seq., the Commission may conduct its own program for servers. The cost to each server in attendance will be $40. While attendance at a Certified Training Program for alcohol awareness is required for any server to obtain a server permit, it is not necessary that such server attend the Commission program. The Commission will conduct such training upon a finding by the Commission that it is necessary for the Commission to conduct the training because of the lack of substantial, active, and decreasing number of certified server trainers.

(4) Server Permit to be Available for Review. On-premises consumption licensees must maintain a readily accessible physical or electronic copy of server permits issued to all alcohol handling employees.

(5) Refusal of Cooperation. Any Certified Training Program or certified trainer, his agent, or employee who refuses to open or disclose his records to, or furnish information to, or who furnishes false and/or misleading information to an Agent or representative of the Tennessee Alcoholic Beverage Commission upon any matter relating to or arising out of the conduct of the licensed premises shall subject the license to revocation or suspension.

(6) Upon written notification from a certified program that a certified trainer is prohibited from conducting its course, then that trainer shall immediately cease conducting such classes.

The Commission will not accept any classes conducted by that trainer under that program until such time as the trainer is reinstated by the certified program.

(7) Certified trainers shall not represent or advertise to servers or any member of the general public that server permits will be issued by the Commission within a specific length of time unless authorized to do so by the Commission.

History

Authority: T.C.A. §§ 57-1-209, 57-3-104, 57-3-212, 57-3-705, 57-3-710, and 57-4-201.
Administrative History: Original rule filed January 31, 1997; effective April 16, 1997. Amendment repealing and replacing the rule was filed March 10, 2010; effective June 8, 2010. Amendments filed February 9, 2024; effective May 9, 2024.

Tenn. Comp. R. & Regs. 0100-08-.06 FINES

(1) In any case where the Commission is given the power to suspend or revoke any license or issued pursuant to Title 57, Tennessee Code Annotated, the Commission may, in the alternative to suspension or revocation, impose a fine as set out hereafter.

(2) Fines may be used to informally remedy a matter by written consent of all parties to the matter.

(3) Any violation of the Rules and Regulations promulgated to implement and maintain the Alcohol Server Responsibility and Training Act of 1995 may result in the imposition of a fine, suspension, or revocation of any certification, licensee, or permit issued by the Commission.

(4) Providing false or misleading information in any required document, application, and/or advertisement may result in the denial of that application, or the suspension or revocation of a program’s certification.

(5) Reimbursement for checks returned to the Commission for insufficient funds must be made within ten (10) days of notification. If such reimbursement is not made within ten (10) days, then the license or server permit will be subject to disciplinary action including revocation.

History

Authority: T.C.A. §§ 57-1-209, 57-3-104(c)(4), 57-3-212(c), 57-3-705(5), 57-3-710, and 57-4-201.
Administrative History: Original rule filed January 31, 1997; effective April 16, 1997. Amendment repealing and replacing the rule was filed March 10, 2010; effective June 8, 2010.

Tenn. Comp. R. & Regs. 0100-08-.07 REPEALED

History

Authority: T.C.A. §§ 57-1-209, 57-3-104(c)(4), 57-3-212(c), 57-3-705(5), 57-3-710, and 57-4-201.
Administrative History: Original rule filed January 31, 1997; effective April 16, 1997. Amendment repealing the rule was filed March 10, 2010; effective June 8, 2010.

Chapter 0100-09 Responsible Beer Vendor Program

Tenn. Comp. R. & Regs. 0100-09-.01 DEFINITIONS

(1) Certified Clerk. For the purposes of this chapter, a certified clerk is a certified responsible beer vendor employee who has successfully completed a certified training course and, if appropriate, has received required additional annual training as set forth in the rules.

(2) Clerk. For the purposes of this chapter, a clerk is a certified responsible beer vendor employee who works in a capacity to sell, provide, distribute, and/or otherwise dispense beer of alcoholic content as defined at T.C.A. § 57-5-101(b) and whose duties include the opportunity to sell, provide, distribute and/or otherwise dispense such products. Clerks also include those certified responsible beer vendor employees who monitor self-scan or customer-scan check-out areas.

(3) Commission. The Commission shall mean the Tennessee Alcoholic Beverage Commission.

(4) Hire Date. The applicable hire date for a clerk is when that employee’s duties and responsibilities include the opportunity to sell, provide, distribute and/or otherwise dispense beer of alcoholic content as defined at T.C.A. § 57-5-101(b).

(5) In-house Program. An in-house program is a training program administered by a vendor for the vendor’s employees.

(6) Public Program. A public program is a training program administered to any individual by an entity other than a vendor. A public training program is also a training program administered by a vendor to both its own employees as well as other individuals.

(7) Training date. The training date is the date on which a clerk successfully completes a vendor training program for a particular vendor.

(8) Valid Identification. Valid identification means government issued identification that includes photograph and that has not expired. Such identification includes driver’s licenses, military identification, passports and permanent resident cards.

History

Authority: T.C.A. § 57-5-605(b).
Administrative History: Original rule filed March 10, 2010; effective June 8, 2010. Repeal and new rules filed February 29, 2016; effective May 29, 2016.

Tenn. Comp. R. & Regs. 0100-09-.02 APPLICATION/CERTIFICATION PROCESS

(1) Application for Certification of a Responsible Beer Vendor Training Program. Any entity or individual seeking to have a responsible beer vendor training program certified shall complete and submit a written application on forms prescribed by the Commission. The application shall disclose the following information:

(a) The identity of the applicant seeking to have the program certified, including the address, names of all individuals responsible for beer vendor training, and the source of the curriculum utilized by the applicant.

If the applicant is a corporation or LLC, a copy of the corporate charter, articles of organization, and/or certificate of authority must be submitted.
If the applicant is a partnership, a copy of the certificate filed with the Tennessee Secretary of State’s Office (if a limited partnership), or other document evidencing formation of such partnership is required.

(b) Each program applicant shall submit to the Commission a copy of all training materials (including video or audio materials used for their program). A true and exact copy of the curriculum, including tests, to be utilized in the responsible beer vendor training program must also be submitted. Prior to any modifications to the training materials, such proposed modifications shall be submitted to the Commission for approval. To be certified, a responsible beer vendor program must offer a curriculum which, at a minimum, contains the following items:

The effect of alcohol on the human body focusing on these elements:

(i) The behavioral effects of alcohol: i.e., decrease in reaction and decision making capability;

(ii) Interaction and combined effects of mixing alcohol with legal and/or illegal drugs; and (iii) Identification of possible intoxicated customers.

Identifying situations in which clerk intervention is appropriate.
Handling situations and people in a non-confrontational manner and identifying when support from co-workers is necessary.
Suggested responses by clerks to situations involving intoxicated and/or underage persons.
A review of current Tennessee laws, rules, and regulations promulgated by the Commission relating to the sale beer and/or malt beverages and the Tennessee Responsible Vendor Act of 2006.
A review of appropriate identification including acceptable driver’s licenses, military identification, passports, and other government issued photo identification cards; and 7. A review of how to identify fake and/or altered identifications as described above.
Advising attendees that local ordinances may exist affecting the sale of alcoholic and malt beverages.

(c) If the responsible beer vendor training program conducts in-person training, then the program shall submit a TABC questionnaire for each trainer conducting their class to the Commission. Such completed questionnaire must be received by the Commission prior to that trainer conducting classes.

(d) Any other information requested by the Commission; and (e) Appropriate certification fee.

(2) If the training program is conducted through the use of the Internet or Intranet, then in addition to the items required above, the training program must provide verification acceptable to the Commission that the identity of the users may be authenticated.

(3) Renewal of Responsible Beer Vendor Training Program Certification.

(a) Responsible Beer Vendor Training Program Certification shall be valid for a period of one year from the date of issue.

(b) To prevent interruption of certification, the responsible beer vendor training program must fulfill the following requirements at least thirty (30) days prior to expiration date:

Submit to the Commission a completed renewal application along with any amended or updated materials;
List of all current trainers;
Appropriate renewal fee.

(4) Application for Certification of a Responsible Beer Vendor. Any entity or individual seeking to become a certified responsible beer vendor shall complete and submit a written application on forms prescribed by the Commission. The application shall disclose the following information:

(a) The identity of the applicant seeking to achieve responsible beer vendor status, including the address, phone number, and any other information required by the Commission.

If the applicant is a corporation or LLC, a copy of the corporate charter and/or certificate of authority must be submitted.
If the applicant is a partnership, a copy of the certificate filed with the Tennessee Secretary of State’s Office (if a limited partnership), or other document evidencing formation of such partnership is required.

(b) Names and identifying information of all clerks employed—such information shall be submitted on forms prescribed by the Commission;

(d) Any other information requested by the Commission;

(e) Identification of training program used; and (f) Appropriate certification fees.

(5) Application for Renewal of Certification of Responsible Beer Vendor.

(a) Program certification shall be valid for a period of one year from the date of issue.

(b) To prevent interruption of certification, the responsible beer vendor must fulfill the following requirements at least thirty (30) days prior to expiration date:

Submit to the Commission a completed renewal application along with any amended or updated materials; and 2. Each responsible beer vendor shall submit at least thirty (30) days prior to the expiration of the certification a renewal application; a current list of all clerks and their hire dates (such shall be submitted on forms prescribed by the Commission); the date that the certified clerks received their annual training; and the appropriate certification fee.

(6) Neither program nor responsible beer vendor certifications are transferable. Before a transfer of ownership can occur, that new entity must first make application for certification to the Commission pursuant to the rules and regulations. The new business entity may not begin training and the vendor will not be certified by the Commission until an application for certification is approved. Once the location is certified as a responsible beer vendor, then the responsible beer vendor has 61 days to train its clerks.

History

Authority: T.C.A. § 57-5-605(b).
Administrative History: Original rule filed March 10, 2010; effective June 8, 2010. Repeal and new rules filed February 29, 2016; effective May 29, 2016.

Tenn. Comp. R. & Regs. 0100-09-.03 RESPONSIBLE BEER VENDOR TRAINING PROGRAM FORMAT

(1) Complete training program must be at least (2) hours of instruction, excluding breaks for attendees. Such training program must take place in a publicly accessible location, but may take place on the certified responsible beer vendor’s premises. Training programs may not be conducted in private homes.

(2) The training program must provide either printed materials to attendees or make training materials available online for review after completion of the training. Once a program has been certified by the Commission, the following statement shall be placed in bold type on the cover sheet of such written materials or manuals: “This program has approved by the Tennessee Alcoholic Beverage Commission as currently satisfying the requirements contemplated by the Tennessee Responsible Vendor Act of 2006”.

(3) (a) At the beginning of each training program, attendees shall be advised that they must meet the following qualifications to be a certified clerk eligible to participate in the responsible beer vendor program:

i. Be at least 18 years of age;

ii. Must not have been criminally convicted of any violation of the laws against possession, sale, manufacture, or transportation of beer or other alcoholic beverages within the past ten (10) years; and iii. Must not have been convicted of any crime involving moral turpitude within the past ten (10) years.

(b) A responsible beer vendor is not required to perform criminal background checks on employees or clerks; however, the responsible beer vendor should inquire on the application as to any convictions the employee or clerk has had for the past ten years.

(4) Testing.

(a) Upon completion of the training, the program must adequately test the comprehension and understanding of the attendees. Testing should be sufficiently randomized and conducted in such a manner as to prohibit prior knowledge of the answers by users. A passing score of at least seventy (70) % percent will be required from each person attending the training before a certificate may be issued-unless the certified beer vendor program requires a higher score.

(b) Any attendee failing to attain this passing score may contact the certified program licensee to schedule a second examination within thirty (30) days. A second examination shall be provided to the attendee by the responsible beer vendor program without additional charge.

(c) If the second examination is not scheduled and taken within this thirty day period, then the attendee shall be required to attend a second training program in its entirety and pass the test before being eligible to obtain the certificate. Nothing herein shall act to extend the original sixty-one (61) day grace period from the date of hire as a clerk.

(d) Within twenty-one (21) calendar days of the training date, the certified program must provide to the Commission a list of all clerks who have successfully completed the program along with the vendor for which each clerk completed the training.

(e) If the certified program and responsible beer vendor are the same entity (i.e., if the responsible beer vendor has an in-house certified program), then a single notification to the Commission is sufficient.

(5) Alcoholic beverages may not be consumed by the instructor or any attendee during the training program.

(6) All training must be conducted in a professional manner: materials and comments may not be offensive in nature.

(7) (a) All Certified Responsible Beer Vendor Training Programs shall issue a certificate of completion for any clerk who has successfully completed the training. The original certificate of completion shall be forwarded to the appropriate responsible beer vendor, and the clerk successfully completing the training shall receive a copy. Each certificate of completion shall include the following information:

Name and date of birth for clerk;
Name of certified program providing the training;
Date on which the clerk successfully completed the program; and 4. Name and complete address of responsible beer vendor receiving the certificate of completion.

(b) Any certified program or responsible beer vendor offering or submitting a fraudulent, fake and/or altered certificate of completion to a TABC representative or to the Commission shall subject their certification to immediate disciplinary action—including, but not limited to, summary suspension and revocation.

(8) All Certified Training Programs shall permit access to Commission representatives. Failure to permit access to a Commission representative will result in the program being required to show cause to the Commission why its certification should not be revoked.

(9) A successful completion by a clerk of a responsible beer vendor training conducted by a certified training program within 61 days prior to the responsible beer vendor submitting its application to the Commission shall be valid. However, such training is valid only for one designated responsible beer vendor location.

History

Authority: T.C.A. § 57-5-605(b).
Administrative History: Original rule filed March 10, 2010; effective June 8, 2010. Repeal and new rules filed February 29, 2016; effective May 29, 2016.

Tenn. Comp. R. & Regs. 0100-09-.04 MISCELLANEOUS PROVISIONS

(1) Clerk Applicants with Special Needs. Persons with special needs must contact the certified program at least seven (7) calendar days in advance of the training date to request specific assistance in completing that program. Notwithstanding any other provision of these rules, the certified program shall endeavor to provide reasonable accommodations when requested on a case by case basis in compliance with state and federal law.

(2) (a) Within ten (10) calendar days of the training date, the responsible beer vendor training program must submit to the responsible beer vendor a list of all clerks who successfully completed the training program and received a certificate of completion.

Responsible training beer vendor programs shall maintain records of those successfully completing the training program for a period of at least three years to be available for the Commission to review.

(b) (i) If a responsible beer vendor owns and operates several locations (operating under the same business name and corporate name) and is using the same responsible beer vendor program for each location, then clerks and/or employees attending a responsible beer vendor program may—upon the initial training course—designate the various locations within the same responsible beer vendor’s operation. The successful completion of the training course will be sufficient for training requirements at each designated location. This option does not apply to individuals working at responsible beer vendor locations owned by different entities. The responsible beer vendor training program will issue a certificate to the clerk/employee for each location designated at the time of the class.

(ii) For the purposes of certification costs, employees described in the above paragraph will be counted as an employee for each location.

(iii) For clerks desiring to add new responsible beer vendor locations under the same ownership after the initial designation, then new training must occur for each location.

(3) (a) Within twenty-one (21) calendar days of the training date, the responsible beer vendor must submit to the Commission a list of all clerks who have successfully completed the training program and received a certificate of completion. Such list shall on be submitted on forms prescribed by the Commission.

(b) If the certified program and responsible beer vendor are the same entity (i.e., if the responsible beer vendor has an in-house certified program), then a single notification to the Commission is sufficient.

(4) Commission Training Program. To further implement the policy and standards of the Tennessee Responsible Vendor Act of 2006, the Commission may conduct its own training program for clerks. The cost to each clerk in attendance for this training program will be $35.00. While attendance at a responsible beer vendor program for alcohol awareness is required for any clerk working at a responsible beer vendor location, it is not necessary that such clerk attend the Commission program.

(5) Each responsible beer vendor shall maintain and have available for review by Commission representatives’ employment and training records for all clerks. Such documentation shall include, but is not limited to, the following information for each clerk:

(a) Name, address, and social security number;

(b) Date of hire;

(d) Date of required annual training related to updated information, policies and procedures.

(6) Loss of Clerk Certification.

(a) A certified clerk shall lose their certification under the following circumstances:

If the beer board determines that the clerk sold alcoholic beverages to a minor.

The clerk shall lose their certification for a period of one year beginning on the date of the beer board’s determination; or 2. If the clerk receives a criminal conviction of a charge involving the sale of alcoholic beverages to a minor. The clerk shall lose their certification beginning on the date of the conviction, and is further subject to the provisions of T.C.A. § 57-5-301(a)(1); or 3 Certified clerks must annually attend a meeting regarding updated statutory information as required by T.C.A. § 57-5-601 et seq. This annual meeting shall be held for all clerks within the last quarter of each calendar year. Within twentyone days after the annual training, the responsible beer vendor shall notify the Commission in writing if the certified clerk has not attended the annual meeting regarding updated statutory information as required by T.C.A. § 57-5-601 et seq.

Upon such notification by the responsible beer vendor to the Commission, the certification for identified clerk shall immediately become invalid. Such clerk shall not work in a capacity to sell beer directly to consumers for off-premise consumption until the clerk has received the required updated training; or 4. If the clerk has not attended at least one annual meeting by the time set forth in these rules and received updated information disseminated by the responsible beer vendor.

(b) If a clerk loses their certification but continues to work as a clerk and subsequently, sells beer to an under-aged individual, then the responsible beer vendor shall not be considered a responsible beer vendor for the purposes of disciplinary action taken by a beer board.

(7) Name Badge. Each certified clerk is required to wear a name badge issued by the responsible beer vendor. Such name badge shall contain the clerk’s legal first name, or “given name,” but may omit the clerk’s last name, or family name, and must be clearly visible to the general public.

(8) Grace Period.

(a) Clerks have sixty-one (61) calendar days from their date of hire as a clerk to successfully complete responsible beer vendor training. During this 61 day grace period, if a sale to a minor takes place the Responsible Beer Vendor is treated as having responsible beer vendor status. Any criminal action against the clerk is not affected. If clerks have not received the appropriate training within 61 calendar days of their date of hire, then the responsible beer vendor temporarily loses its status as a responsible beer vendor immediately at the conclusion of the 61 calendar day period.

However, if the situation is corrected within thirty (30) calendar days, then upon payment of a civil penalty to the Commission, the status of “responsible beer vendor” may be re-instated. If training does not occur to remedy the situation within thirty (30) calendar days, then the responsible beer vendor status is considered expired and the vendor permanently loses its status as a responsible beer vendor, and a new application must be submitted and training must re-occur.

(b) In scenario above, should a beer permittee be subject to disciplinary action by a local beer board for a violation involving the sale of alcoholic beverages to a minor, the Commission will, upon request, advise the beer board that the permittee is not a responsible beer vendor because all employees have not received adequate training in a timely manner.

(c) If a clerk who is not eligible to participate in the responsible beer vendor program (i.e., if the clerk is under the age of eighteen) sells alcohol to a minor, then the responsible beer vendor loses its status as a responsible beer vendor and is subject to the discretion of the local beer board as it relates to disciplinary action against the beer permit.

(d) Upon request, the Commission will issue an affidavit, signed by appropriate personnel, to certify the status of a clerk or responsible beer vendor. This affidavit will be sufficient in lieu of in-person testimony by a Commission representative before a local beer board.

(9) Refusal of Cooperation. Any certified clerk, responsible beer vendor program, responsible beer vendor, its agent, or employee, who refuses to open or disclose its records to, or furnish information to, or who furnishes false and/or misleading information to a TABC special agent, regulatory officer or any representative of the Commission upon any matter directly and/or indirectly relating to the responsible beer vendor program, certification, employees, etc., shall subject the certification and participation in the responsible beer vendor program to suspension and/or revocation.

(10) Beer Boards and Local Law Enforcement. Communication between city and/or county beer boards, local law enforcement and the Commission is vital for the success of the Responsible Beer Vendor program.

(a) When a vendor appears before a city or county beer board for an administrative charge of the sale of alcohol to a minor, the Commission will either:

Verify the vendor and/or clerk who sold the alcohol to a minor are certified and are eligible for mitigation in disciplinary action according to the statute; or 2. Verify such vendor and/or clerk have not been certified, and are not eligible for mitigation in disciplinary actions by the regulating beer board.

(b) Local beer boards should notify the Commission when disciplinary actions involving the sale of alcoholic beverages to a minor have been taken against an off-premise beer permittee within 15 days of such action.

(c) If a beer permittee represents to a city or county beer board that they are a responsible beer vendor but are not, then the city or county beer board should notify the Commission of such misrepresentation. Such beer permittee shall be ineligible to participate in the responsible beer vendor program for a period of three (3) years from the date of misrepresentation.

(d) Local law enforcement should notify the Commission when an employee of an offpremise beer permittee has been criminally convicted of a charge involving the sale of alcoholic beverages to a minor.

(11) Notice of training sessions. The Commission must be notified seven (7) calendar days in advance of any training if the training will be conducted by an individual(s) at a location where clerks will be present. The notice must include the name of the training program, the instructor, the complete address of the training site, and the time and location of the training.

(12) To obtain the benefits associated with being a certified responsible beer vendor, the beer permittee must actually be certified by the Commission as a responsible beer vendor at the time of the offense. Any application for certification as a responsible beer vendor submitted to the Commission with charges/offenses pending before the local beer board will not be reviewed until such charges/offenses are concluded: the approval or denial of the responsible beer vendor application will be made once the Commission has received notification of the result of the pending charges/offenses.

(13) Once the Commission receives notification of a second offense sale of alcohol to a minor within a twelve month period, then the Commission shall revoke the responsible beer vendor’s certification as a responsible beer vendor for a period of three years. Subsequent sales of alcohol to minors by the beer permittee do not receive protection under the responsible beer vendor training provisions.

History

Authority: T.C.A. § 57-5-605(b).
Administrative History: Original rule filed March 10, 2010; effective June 8, 2010. Repeal and new rules filed February 29, 2016; effective May 29, 2016.

Tenn. Comp. R. & Regs. 0100-09-.05 FINES

(1) The Commission is given the power and authority to suspend or revoke any license or permit issued pursuant to Title 57, Tennessee Code Annotated, for any violation thereof; however, the Commission may, in its discretion, impose a fine as set out hereafter, in lieu of suspension or revocation of any license or permit.

(2) Fines may be used to informally remedy a matter by written consent of all parties to the matter.

(3) Any violation of the Rules and Regulations promulgated to implement and maintain the Responsible Vendor Act of 2006 may result in the imposition of a fine, suspension, or revocation of any certification, license, or permit issued by the Commission.

(4) Providing false or misleading information in any required document, application, and/or investigation may result in the denial of that application, or the suspension or revocation of a program’s or vendor’s certification.

(5) Fines may be assessed for the following violations:

(a) Against a Responsible Beer Vendor:

Misrepresentation of status as a Responsible Beer Vendor;
Willful failure to comply with Tennessee statutes and Tennessee Alcoholic Beverage Commission Rules and Regulations;
Failure to have Clerk certified within 61 calendar days of hire date;
Failure to verify eligibility of clerk for certification prior to hiring with the Commission;
Failure to maintain original certification of completion for clerk at Responsible Beer Vendor location;
Failure to notify Commission within twenty-one (21) calendar days of training for certified clerk;
Failure to provide or have clerk display name badge while on duty;
Failure to provide instructions for its employee’s as approved by the Commission;
Failure to have certified clerk meet annual meeting requirements;
Failure of Responsible Beer Vendor to disseminate updated information prescribed by the Commission and the Responsible Beer Vendor Policy and Procedures related thereto;
Failure to notify Commission of clerk failure to attend annual meeting following original certification;
Failure to maintain records of certified clerk required annual meeting;
Failure to disseminate information related to changes in State Law or Commission Rules and Regulations to certified clerks as required by the Commission;
Failure to maintain employment records and all responsible training records of all clerks;
Failure to cooperate by not providing information requested by the Commission;
Failure to notify Commission of change in training program;
Allowing a decertified clerk to continue to operate in a capacity to sell beer directly to consumer;
Failure to have Responsible Beer Vendor certificate posted;
Failure to Renew Responsible Beer Vendor Certification in a timely manner.

(b) Against a Training Program:

Failure to meet mandatory minimum class time;
Not a TABC certified training program for Responsible Beer Vendor Training;
Failure to adequately test the comprehension and understanding of the attendees of the Responsible Beer Vendor Training of off premise sale of beer;
Failure to cover the required material;
Failure to timely renew certification.

History

Authority: T.C.A. § 57-5-605(b).
Administrative History: Original rule filed March 10, 2010; effective June 8, 2010. Repeal and new rules filed February 29, 2016; effective May 29, 2016.

Chapter 0100-10 Direct Shipment of Wine to Consumers in Tennessee

Tenn. Comp. R. & Regs. 0100-10-.01 APPLICATIONS FOR DIRECT SHIPPER

A winery direct shipper license applicant is required to submit a complete application in a manner specified by the Commission, and a separate business owner questionnaire for each owner, partner, and/or officer with at least ten (10) percent ownership interest. Applicants are required to pay a nonrefundable application fee of $300.00 and, upon approval of the application, an annual license fee of $150.00. Additionally, Applicants must provide the Commission with the following information:

(1) A copy of a federal basic permit issued pursuant to the Federal Alcohol Administration Act (27 U.S.C. §§ 201 et seq.) authorizing the permittee to engage in the business of wine production. Federal basic permits related to distilled spirits production, the importation of alcoholic beverages in the United States, or wholesale of alcoholic beverages are not acceptable.

(2) A list of all wine brands that Applicant intends to sell under the license. Only wine brands that are included in the application and accepted by the Commission may be sold and shipped to Tennessee consumers by the winery direct shipper and/or its agent, the licensed fulfillment house. Winery direct shippers are prohibited from selling brands associated with another winery direct shipper license. If TABC determines that there is an absence of sufficient proof that a listed brand is produced pursuant to this paragraph, TABC has discretion to remove the brand from the list of accepted brands from the application and the winery direct shipper is prohibited from selling the removed brand under its winery direct shipper license.

(3) Proof that wine brands intended to be sold in Tennessee are owned by or licensed to the winery and are either:

(a) Produced by the winery;

(b) Produced exclusively for the winery under an existing written contract with the winery or farm winery; or (c) Produced and bottled exclusively for the winery.

Brand names and authorized trade names that are disclosed on the federal basic permit may be used to establish that the brand is owned by or licensed to the winery. A Certification/Exemption of Label/Bottle Approval (COLA) reflecting the permittee’s name or authorized trade name may also establish that the brand is owned by or licensed to the winery. This is a non-exhaustive list the Commission shall consider in making this determination. If TABC determines that there is an absence of sufficient proof that a listed brand is produced pursuant to this paragraph, TABC retains the discretion to remove the brand from the list of brands provided on the application and the winery direct shipper is prohibited from selling the removed brand under its winery direct shipper license.

(4) An unexpired copy of the state license authorizing the winery direct shipper to produce wine or have wine produced as described in paragraph (3). A winery direct shipper license only authorizes the sale of wine produced at a single winery. Applicants seeking to sell and ship wine from multiple wineries must obtain a winery direct shipper license for each winery.

(5) Electronic acknowledgement and consent to jurisdiction and venue for all actions brought before the Tennessee Alcoholic Beverage Commission, any Tennessee state agency, or any courts within Tennessee related to the direct shipper license.

(6) Electronic acknowledgement that Applicant will only contract with common carriers who agree that any wine delivered in Tennessee will be by face-to-face delivery to individuals that demonstrate that they are over the age of twenty-one (21) and require a signature upon receipt of delivery.

(7) A copy of the common carrier contract(s), if applicable.

(8) A copy of the contract(s) between Applicant and the licensed fulfillment house(s), if applicable.

(9) Winery direct shipper Applicants are responsible for providing TABC with updated lists and corresponding contracts for each fulfillment house with whom the winery contracts.

(10) An exhaustive list of website addresses on which Applicant will sell wine for shipment into Tennessee. Applicants are required to notify the Commission of any changes throughout the license year in a manner specified by the Commission.

(11) Electronic acknowledgement that Applicant shall include its Tennessee winery direct shipper license number, in at least one (1) location that a reasonable person can locate, on any website from which Applicant sells wine for direct shipment into Tennessee.

(12) Electronic acknowledgement that Applicant may not sell alcoholic beverages other than wine as defined by T.C.A. § 57-3-101 for shipment into Tennessee.

(13) Electronic acknowledgement that Applicant may not sell wine brands other than those disclosed in its application and accepted by the Commission that meet the requirements of T.C.A. § 57-3-217.

(14) Electronic acknowledgement that Applicant will not sell alcoholic beverages for shipment in Tennessee on any website not disclosed on the application and accepted by the Commission.

(15) Electronic acknowledgement that winery direct shippers producing two hundred seventy thousand (270,000) liters or more of wine per calendar year may not ship more than twentyseven (27) liters of wine to an individual in a calendar year.

(16) Electronic acknowledgement that winery direct shippers producing less than two hundred seventy thousand (270,000) liters of wine per calendar year may not ship more than fifty-four (54) liters of wine to an individual in a calendar year.

(17) Electronic acknowledgement that a winery direct shipper may not ship more than nine (9) liters of wine to an individual in a calendar month.

(18) Sufficient information to establish that Applicant is registered with the Tennessee Department of Revenue to pay applicable Sales & Use Taxes and Gallonage Taxes or is otherwise eligible to submit Sales & Use Taxes and Gallonage Taxes to the Tennessee Department of Revenue.

(19) Electronic acknowledgement that any shipment of wine by licensed direct shippers will be made in containers that are clearly marked on the exterior of the container, visible to a person at least three feet (3’) away, that the container “CONTAINS ALCOHOL: SIGNATURE OF A PERSON AGE 21 OR OLDER REQUIRED FOR DELIVERY.”

(20) Electronic acknowledgement that the licensed direct shipper is responsible for remitting all sales tax due to the State of Tennessee from any sales made under the Tennessee direct shipper license.

(21) Electronic acknowledgement that the licensed direct shipper is responsible for remitting gallonage taxes as imposed by T.C.A. § 57-3-302.

(22) Electronic acknowledgement that the licensed direct shipper is required to provide quarterly reports in the manner specified by the Commission that lists the following:

(a) The name, address, and license number of the fulfillment house used, if applicable;

(b) The name of the common carrier, if no fulfillment house is used;

(d) The carrier tracking number;

(e) The quantity, by weight or other means, the sales price, and the product type of wine shipped; and (f) The name and address of the recipient.

(23) Compliance with the Eligibility Verification for Entitlements Act as codified in T.C.A. §§ 4-58- 101, et seq.

History

Authority: T.C.A. §§ 4-58-103 and 57-3-217.
Administrative History: Original rule filed October 14, 2014; effective January 12, 2015. Amendments filed September 29, 2022; effective December 28, 2022.

Tenn. Comp. R. & Regs. 0100-10-.02 TAXES (WHEN DUE)

The taxes levied on sales made by a winery direct shipper as authorized by T.C.A. § 57-3-217 and these TABC Rules are due and payable on the first day of each month following the month during which the sales occur, and are delinquent if not paid on or before the twentieth day of the following month. The wine gallonage tax is delinquent if not paid by the fifteenth of the following month. For the purpose of ascertaining the amount of tax due, it is the duty of any direct shipper licensed under this section to transmit to the Tennessee Department of Revenue the appropriate returns on forms required by the Commissioner of the Tennessee Department of Revenue.

History

Authority: T.C.A. §§ 57-3-217, 57-3-302, and 57-3-303.
Administrative History: Original rule filed October 14, 2014; effective January 12, 2015. Amendments filed September 29, 2022; effective December 28, 2022.

Tenn. Comp. R. & Regs. 0100-10-.03 ENFORCEMENT OF RULES

(1) The TABC is authorized to enforce the requirements of T.C.A. § 57-3-217 and these TABC Rules by administrative action, has discretion to suspend or revoke a direct shipper's license, and has a right to accept an offer in compromise in lieu of suspension.

(2) TABC has a duty to recover all costs incurred in connection with the investigation and administration action, including the out-of-pocket costs and reasonable personnel costs, in addition to any fine imposed by the Commission, when a winery direct shipper is found to have violated these Rules.

(3) No direct shipper may avoid liability under this section by subcontracting with a third party to perform its obligations required pursuant to this section.

(4) It is a violation of this TABC Rule and T.C.A. § 57-3-217(g)(1), and a Class E felony, punishable by fine, for a person or entity that does not possess a winery direct shipper license or a fulfillment house license to ship wine to Tennessee residents.

History

Authority: T.C.A. § 57-3-217.
Administrative History: Original rule filed October 14, 2014; effective January 12, 2015. Amendments filed September 29, 2022; effective December 28, 2022.

Tenn. Comp. R. & Regs. 0100-10-.04 EXPIRATION AND RENEWAL OF LICENSES

Each direct shipper permit will expire twelve (12) months after the date of issuance. It is the responsibility of the direct shipper licensee to submit a complete application and payment of the annual license fee prior to the expiration of the license. The expiration date printed on the license serves as notice of the need to seek the renewal of the license by such expiration date, and no additional notice is required. Direct shipper licenses will be closed on the business day after expiration if both an application and a license fee have not been received. If the Commission receives an application and license fee prior to the expiration date, the closing of the license will be tolled, and the license will remain valid until the Commission reviews the application. The Commission will approve and renew or otherwise close the expired license for which renewal is sought no more than 45 days after its expiration date. Licenses that the Commission does not renew will be closed and void after those 45 days regardless of the date of closure.

History

Authority: T.C.A. §§ 57-1-209, 57-3-104(c)(4), 57-3-213, and 57-3-217.
Administrative History: New rule filed June 2, 2022; effective August 31, 2022.

Chapter 0100-11 Rules for Sales of Wine at Retail Food Stores

Tenn. Comp. R. & Regs. 0100-11-.01 LICENSES AND PERMITS

(1) Procedure for Off-Premise Retail Food Store Wine License Application. An application for a retail food store wine license shall be made on forms provided for such purpose by the Commission. In addition to completing and filing such forms, data, written statements, affidavits, evidence or other documents deemed a part of the application, an applicant shall provide the Commission with the following information:

(a) Applications shall be submitted to the TABC Headquarters offices in Nashville, Tennessee or on-line at the TABC website. In addition to the application and other forms provided by the Commission, the following data, written statements, affidavits, evidence or other documents must be submitted in support of an application for a retail food store wine license:

Completed application;
Completed questionnaires from all individuals having at least a ten percent (10%) ownership interest in the business and from all executive officers of a corporate applicant. As used in this rule, the term “executive officers” shall mean each of the following four persons: (1) the President or Chief Executive Officer (CEO); (2) the Vice President or Chief Operating Officer (COO); (3) the Secretary; and (4) the Treasurer or Chief Financial Officer (CFO). The term “executive officers” shall include the four (4) individuals that best fit into each of the above categories, respectively and shall not include more than four (4) individuals, including assistant secretaries, assistant officers, and other such individuals;
Proof of possession of the licensed premises, i.e., lease agreements, assignments, subleases, and/or deed to property;
Affidavit from the landlord or owner of the proposed location of the applicant’s retail food store stating that there does not exist any lease or deed restrictions or covenants limiting or restricting the sale or distribution of wine or other alcoholic products (i.e. alcoholic beverages and/or beer as defined in T.C.A. § 57-5-101) by any tenant within the same shopping center or development of the applicant;
A copy of any management or franchise agreement, if applicable;
Affidavit regarding amount of sales taxable sales of the applicant and copies of applicant’s sales tax returns filed with the Tennessee Department of Revenue for the last complete business year;
Affidavit regarding amount of retail floor space of the applicant;
If not included in the lease, a site plan designating the premises and the parking areas;
Certificate of Good Moral Character, Zoning and Approved Sales of Wine by local option election, as required by T.C.A. §§ 57-3-801, 57-3-805 & 57-3-806, issued within one hundred eighty (180) days of the applicant’s application and signed by the county executive 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, signed by the mayor (or highest executive officer) or a majority of the commission, city council, or legislative body of the municipality;
Inspection by the Tennessee Alcoholic Beverage Commission;
Acknowledgement of the rules and regulations;
Proof that applicant entity, if a corporation, LLC, LP, etc., is registered with the Tennessee Secretary of State’s Office, and the submission by said applicant entity of a Certificate of Existence/Good Standing issued by the Tennessee Secretary of State’s Office within thirty (30) days of applicant’s application for a new or renewed license. If applicant entity was formed in another state or foreign jurisdiction, applicant must submit a Certificate of Authorization issued by the Tennessee Secretary of State’s Office within thirty (30) days of applicant’s application for a new license or renewal of an existing license;
Corporate charter/Articles of Organization;
List of Officers/Owners/Members/Partners. Any owner of less than ten percent (10%) of the applicant need not be individually identified;
Sales & Use Tax Certificate of Registration;
Application fee;
Completed declarations of citizenship to be submitted by owner(s), member(s), executive officer(s), and/or principal(s) of the applicant and others as required by P.C. 1061 (2012);
Designation by the applicant of a TABC permitted manager or managers who will be in actual control of the retail wine sale operations upon the applicant’s premises; and 19. Any other information that the Tennessee Alcoholic Beverage Commission may request pursuant to the provisions of Tenn. Code Ann. §§ 57-3-801, et.seq.

(b) In addition, any of the following documents which exist must also be submitted:

Management agreements;
Bill of sale.

(c) If a county or municipality wherein the applicant intends to conduct business fails to grant or deny the certificate required by T.C.A. § 57-3-806 within sixty (60) days of receipt of the written application for a certificate, the certificate is deemed to be granted.

(d) Required documents for renewals. All required documents listed in this paragraph are only required for all new applications and are only required for renewal applications upon specific request of TABC staff.

(e) Establishments with the same ownership. A chain or group of retail stores that operate under the same ownership, such as pursuant to a corporate charter or operating agreement, are not required to submit the required documentation for each and every location of the store or chain, unless otherwise requested by TABC staff.

(f) Alternative documents. The TABC may, at its sole discretion, accept a document other than a specified required document listed in this paragraph, where such other document satisfies the policy or legal rationale for the specified document.

(2) If a lease agreement, assignment, sublease or other documentation executed by the applicant for a retail food store wine license and the owner or landlord of the proposed location, sought to be licensed, contains provisions that would limit or restrict the sale or distribution of wine or other alcoholic products (i.e. alcoholic beverages and/or beer as defined in T.C.A. § 57-5-101) within the same shopping center or other development whereupon the applicant seeks to license its premises, the applicant and the owner or landlord of the proposed location, shopping center or other development, must submit documentation acceptable to the Commission waiving any such restrictions to any and all tenants within the same shopping center or other development. An applicant is not required to obtain and submit the leases of other tenants of the shopping center or other development.

However, lease or deed restrictions or covenants imposed by an owner or landlord limiting or restricting the sale or distribution of wine or other alcoholic products (i.e. alcoholic beverages and/or beer as defined in T.C.A. § 57-5-101) by other tenants within the same shopping center or development will serve to prohibit the issuance to the applicant of a retail food store wine license at the proposed location.

(3) An applicant for a retail food store wine license shall identify all retail liquor stores within 500 feet measured from the closest outside wall of the confines of the retail food store to the closest outside wall of the retail liquor store. An applicant may submit waivers of the permission required pursuant to T.C.A. § 57-3-806(e) from the retail liquor stores located within 500 feet of the applicant’s retail food store, signed by the owners of such retail liquor stores, and such waivers shall be deemed to be written permission from the retail liquor store for the issuance of the retail food store wine license to the applicant.

(a) Upon receipt of an application for a retail food store wine license application, and in the absence of the submission of a signed waiver from the owner of a retail liquor store located within 500 feet of the applicant’s retail food store, the Commission shall notify the retail liquor store, by email if the retail liquor store has provided an email address or by telephone if not provided, of the applicant requesting said waiver.

(b) The retail liquor store shall have 30 days to respond to the communication from the Commission by either granting permission for the issuance of a retail food store license or denying the issuance of a retail food store license.

(c) If the retail liquor store does not respond within 30 days, such non-response shall be considered a denial of permission.

(d) If a retail liquor store denies permission for the issuance of retail food store wine license, it shall immediately cease selling all items identified in T.C.A. § 57-3-404(e). A retail liquor store may not resume selling the items identified in T.C.A. § 57-3-404(e) until permission is granted to the retail food store wine applicant and the Commission is notified in writing of this grant of permission or July 1, 2017, whichever occurs first.

(e) The grant of permission to a retail food store shall survive any and all subsequent purchases of a retail liquor store by a new owner and once a written grant of permission has been given to a retail food store it may not be rescinded.

(4) Restriction on License after Revocation. If a retail food store wine license is revoked by the Commission, for a period of one (1) year following revocation, no subsequent license shall be issued to the spouse, child or children, daughter-in-law, son-in-law or other person having any interest in the business of the licensee whose license was revoked. Additionally, for a period of one (1) year following revocation, no license shall be issued at the same location or in close proximity of the same location. The Commission may, in its discretion, waive the prohibition regarding locations.

(5) Must Surrender License If Business Discontinued. Whenever any licensee discontinues business for any reason, it shall immediately notify the Commission in writing and surrender its license.

(6) Time Requirement to Commence Business. Approval of the issuance of a retail food store wine license by the Commission shall automatically expire ninety (90) calendar days after such approval if the licensee has not opened for business, unless a written request is received and granted for an extension.

(7) Business Name Change. At least seven (7) calendar days prior to any change in its business name or “d/b/a,” a licensee shall submit the proposed change in writing to the Commission for approval. Upon approval and within a reasonable time, the Commission will amend the licensee’s electronic record to reflect the licensee’s new business or “d/b/a” name.

(8) Display of License. Any person, partnership, corporation, or other legal entity holding a retail food store wine license shall prominently display and post, and keep displayed and posted, in a conspicuous place in the licensed premises, the license so issued.

History

Authority: T.C.A. §§ 57-1-209, 57-3-104(c)(4) and (5), 57-3-803, and 57-3-806.
Administrative History: Original rule filed February 29, 2016; effective May 29, 2016. Amendments filed June 2, 2022; effective August 31, 2022.

Tenn. Comp. R. & Regs. 0100-11-.02 ISSUANCE OF INITIAL LICENSES

A retail food store wine applicant may not sell wine to patrons or customers for off-premise consumption until it has been issued a retail food store wine license.

History

Authority: T.C.A. §§ 57-3-104(c)(4) and 57-3-803.
Administrative History: Original rule filed February 29, 2016; effective May 29, 2016. Amendments filed August 17, 2017; effective November 15, 2017.

Tenn. Comp. R. & Regs. 0100-11-.03 CONDUCT OF BUSINESS

(1) Advertising.

(a) The provisions of Rules 0100-03-.01, 0100-03-.02, 0100-03-.03, 0100-03-.04, 0100-03- .05, 0100-03-.06, 0100-03-.07, and 0100-03-.08 apply to retail food store wine licensees in the same manner as they apply to off premises retailers licensed pursuant to T.C.A. § 57-3-204.

(b) The minimum price at which a retail food store wine licensee may sell or advertise a particular wine is twenty percent (20%) more than the price per bottle of the particular wine on the retail food store wine licensee’s most recent wholesaler invoice.

(c) A retail food store wine licensee whose business is one of a chain of stores shall not advertise a price lower than the highest minimum price per bottle for all the chain’s stores in the geographic area the advertisement may reach.

(d) The advertised price per bottle shall not represent or assume a case discount unless the requirement of a case purchase is conspicuously stated in the advertisement.

(e) A retail food store wine licensee’s advertisement shall not use the words “exclusive” or “exclusively” in reference to wine.

(f) A retail food store wine licensee’s advertisement may use the phrase “select varieties” only when advertising a brand, but not a specific type of that brand. If the advertisement uses the phrase “select varieties,” then each wine type from that brand shall be available at the advertised price. The phrase “select varieties” shall not be used if the advertisement identifies a particular brand and type.

(2) Responsibility for Penalties and Violations.

(a) Licensees are at all times responsible for the conduct of their business and are at all times directly responsible for any act or conduct of any employee which is in violation of the laws of Tennessee, the rules and regulations of the Commission, whether the licensee be present at any such time or not. This section is defined to mean that any unlawful, unauthorized, or prohibited act on the part of an agent or employee shall be construed as the act of the licensee, and the licensee shall be proceeded against as though it were present and had an active part in such unlawful, unauthorized, or prohibited act, and as if having been at the licensee’s direction and with its knowledge.

(b) In disciplinary proceedings, it shall be no defense that an employee or agent of a licensee acted contrary to an order, or that a licensee did not personally participate in the unlawful, unauthorized, or prohibited action or actions. However, mitigating factors as permitted under the Responsible Wine Vendor program may be considered by the Commission.

(c) In a disciplinary actions brought against a retail food store wine licensee, any suspension or revocation of a license shall suspend or revoke the ability of the retail food store to sell wine and accept deliveries of wine from wholesalers. A suspension or revocation of a license shall not affect the ability of the retail food store to remain open or to sell other items not regulated by the TABC, including food items, non-food items, and beer.

(3) Pricing of Wine at Retail Food Stores.

(a) Pursuant to T.C.A. § 57-3-903, the minimum price at which a retail food store wine licensee may sell or advertise a particular wine is twenty percent (20%) more than the price per bottle of the particular wine on the retail food store wine licensee’s most recent wholesaler invoice.

(b) A wholesaler’s invoice for wine sold to a retail food store wine licensee shall state the cost per bottle of each wine, including all taxes, fees, and charges passed on from the wholesaler to the retail food store wine licensee. These taxes, fees, and charges include, but are not limited to:

Gallonage taxes;
Enforcement taxes;
Municipal inspection fees;
Transportation costs or surcharges;
Split case fees; and 6. Restocking charges.

(c) A retail food store wine licensee shall not apply discounts offered under customer discount cards to the price of wine.

(d) Exceptions to the Unfair Wine Sales Law.

A retail food store wine licensee may sell or advertise wine at a price that would otherwise be impermissible in the following circumstances:

During the final liquidation of a licensee’s business;
Under the direction of a court, such as a bankruptcy court;
When offering a closeout, which is a reduced price on a brand of wine that will no longer be sold by a particular retail food store; provided that:

(i) The retail food store wine licensee sold the brand offered at closeout for at least one hundred twenty (120) days before the beginning date of a closeout sale;

(ii) The closeout sale shall not last more than ninety (90) days; and (iii) The retail food store wine licensee shall not sell the brand of wine sold at closeout for at least one (1) year after the closeout sale concludes.

When offering a discount on a case of wine, which may include various brands of wine chosen by the consumer and which must include at least:

(i) Twelve (12) bottles containing seven hundred fifty (750) milliliters of wine;

(ii) Six (6) bottles containing one and a half (1.5) liters of wine; or (iii) Four (4) boxes containing three (3) liters of wine.

(e) A retail food store wine licensee may not sell or advertise wine at a price below the cost paid by the retailer to purchase the wine from the wholesaler.

(4) If a retail food store fails to sell all wine offered during a closeout, it may only:

(a) Donate the wine for use at a licensed special occasion event;

(b) Destroy the wine; or (c) Store the wine for twelve months until the store can sell the product again.

(5) All Licensees Must Keep Records Available Three Years. Each licensee shall keep, for at least three (3) years; all purchase orders, invoices and all other records of all purchases and sales of wine made by such licensee. All such orders, invoices, and all other books and records pertaining to the licensee’s operation shall be open for inspection to any authorized representative of the Tennessee Alcoholic Beverage Commission or Department of Revenue and failure to make such available shall be deemed cause for revocation of its license. Such records may be maintained in electronic format, and will be deemed available and open for inspection if the Commission or the Department of Revenue can review such records at the licensed premises or, if such records are stored in a central office, can be supplied to the Commission or Department of Revenue within three (3) business days upon request.

(6) Hours Licensee May Sell Wine. A retail food store may sell wine only between the hours of 8:00 a.m. and 11:00 p.m. on Monday through Saturday. A retail food store may not make any sale of wine on Sunday or on Christmas, Thanksgiving, Labor Day, New Year’s Day, or the Fourth of July.

(7) Mandatory Carding. Prior to making a sale of wine, a retail food store certified clerk must inspect a valid unexpired government-issued form of identification to ensure that the purchaser is over the age of 21. The inspection of the identification must take place in a faceto-face transaction. Any government-issued document that has expired shall not be deemed to be “valid” for purposes of T.C.A. § 57-3-808, and as such, a retail food store may not sell wine to a person who has not provided an unexpired government-issued document that meets the requirements of T.C.A. § 57-3-808.

(8) Sales to Intoxicated Customers. A retail food store shall not make a sale of wine to a customer who is visibly intoxicated or accompanied by a person who is visibly intoxicated.

(9) Customer Assistance. An employee of a retail food store may assist customers with loading wine in their vehicles as long as the vehicle is parked in the parking area of the licensee and such parking area is identified in the application of the retail food store. A retail food store permitted clerk must check the identification of any person purchasing wine as part of the sale prior to assistance being given to that customer by an employee with loading of wine to a vehicle.

(10) Managers.

(a) Each retail food store wine licensee shall have at least one designated permitted manager, but may have two or more designated permitted managers. Only the retail food store wine licensee’s designated permitted manager(s) may place orders for wine with wholesalers. A designated permitted manager may not be assigned to more than one retail food store wine licensee.

(b) A designated permitted manager of a retail food store may transfer his or her permit to another retail food store wine licensee by notifying the Commission in writing of the effective date of the transfer. All transfer notifications must be made prior to the designated permitted manager(s) involvement in the placement of wine orders at the new retail food store wine licensee’s location.

(11) Free Access to Licensed Premises Without Warrant. Immediate access, without a warrant, to all parts of a retail food store shall at all times be accorded agents, officers or representatives of the Commission.

(12) Refusal of Cooperation. Any licensee, his agent, or employee who refuses to open or disclose records to, or furnish information to, or who furnishes false and/or misleading information to an agent, officer or representative of the Commission upon any matter relating to or arising out of the conduct of the retail food store premises shall subject the license to revocation or suspension.

(13) Licensee Responsible for Law and Order on Licensed Premises. Each licensee shall maintain his establishment in a decent, orderly and respectable manner in full compliance with all laws of Tennessee, Commission rules and regulations, federal statutes, and ordinances and laws of the municipality and/or county where the licensed premises are located at all times. The renting or leasing of the licensed premises for an event to a nonlicensed entity, person or corporation is specifically deemed not to be a defense for a violation of this rule and does not diminish licensee’s responsibility to comply with this rule.

(14) Restriction as to Age of Licensee’s Employees. Nothing herein shall prohibit a licensee from hiring a person under the age of 18 years, however employees under the age of 18 shall not be permitted to sell wine, beer, malt beverages or hard cider in any establishment licensed under the provisions of T.C.A. § 57-3-803.

(15) Purchases. Only the designated permitted manager(s) of a retail food store wine licensee may place orders for wine with wholesalers. No discounts for wine may take into account orders for wine at other locations owned by the licensee.

History

Authority: T.C.A. §§ 57-1-209, 57-3-104, 57-3-202, 57-3-207, 57-3-210, 57-3-404, 57-3-406, 57-3-412, 57-3-802, 57-3-803, 57-3-806, 57-3-807, 57-3-808, 57-3-811, 57-3-812, 57-3-815, 57-3-903, and 57-3- 909.
Administrative History: Original rule filed February 29, 2016; effective May 29, 2016. Amendments filed August 17, 2017; effective November 15, 2017. Amendments filed February 9, 2024; effective May 9, 2024.

Tenn. Comp. R. & Regs. 0100-11-.04 RENEWAL

(1) In addition to submitting a completed renewal application and the renewal fee, each retail food store wine licensee is required to submit an annual statement detailing its annual total sales revenue and its annual sales taxable sales revenue from the retail sale of food and food ingredients for human consumption. The report of such sales shall not include tax paid as part of the calculations of revenue.

(2) A retail food store wine licensee shall keep sales and purchase records for a minimum of three years in a manner usual and customary in the industry. Such records may be maintained in electronic format.

(3) In the event that the retail food store has failed to meet the requirement that 20% of its sales are from sales taxable sales of food and food ingredients for human consumption, the Commission shall notify the licensee that it has one year to come into compliance with the requirement. The licensee shall submit a plan to the Commission detailing its plan on compliance.

(4) The failure of the retail food store to meet the requirement that 20% of its sales are from sales taxable sales of food and food ingredients for human consumption after the one (1) year period shall result in the Commission’s revocation of its license to sell wine. In the event of a revocation and for a period of one (1) year following revocation, a subsequent license shall not be issued to the spouse, child or children, daughter-in-law, son-in-law or other person having any interest in the business of the licensee whose license was revoked.

Additionally, for a period of one (1) year following revocation, no license shall be issued at the same location or in close proximity (within five miles) of the same location, and the Commission shall not renew a license to the same person, firm or corporation.

History

Authority: T.C.A. §§ 57-3-104(c)(4) and 57-3-806(d).
Administrative History: Original rule filed February 29, 2016; effective May 29, 2016.

Tenn. Comp. R. & Regs. 0100-11-.05 RESPONSIBLE VENDOR TRAINING PROGRAM

Each retail food store wine licensee shall participate in the Responsible Wine Vendor Program, pursuant to T.C.A. § 57-3-818 and be certified pursuant to TABC Rules 0100-12. There shall not be a requirement for a licensee to participate in both the Responsible Wine Vendor Program and the responsible vendor training program established in chapter 5, part 6 of title 57.

History

Authority: T.C.A. §§ 57-3-104(c)(4) and 57-3-818.
Administrative History: Original rule filed February 29, 2016; effective May 29, 2016.

Tenn. Comp. R. & Regs. 0100-11-.06 OPERATION OF LIQUOR BY THE DRINK ESTABLISHMENTS WITHIN RETAIL FOOD

STORES.

(1) A retail food store wine licensee may also hold a license for on-premises consumption within the location as a retail food store wine licensee. However, the premises of the on-premises consumption license must be physically separated from the retail food store wine licensee’s premises. Physical separation may be accomplished by walls, fencing or other means, approved by the Commission, used to indicate that the two areas have been designated to operate separately.

(2) A retail food store wine licensee must operate an area with an on-premises license as a separate entity from the retail food store. A retail food store may sublease its premises to a different person or entity for purpose of operating an establishment licensed pursuant to T.C.A. §§ 57-4-101, et seq.

(3) The comingling of the inventory of alcoholic beverages by any person holding a license under T.C.A. § 57-3-801 and T.C.A. § 57-4-101 or by any different persons holding licenses pursuant to T.C.A. § 57-3-801 and T.C.A. § 57-4-101, is cause for suspension or revocation of any and all licenses that is involved in such activity.

History

Authority: T.C.A. §§ 57-3-104(c)(4) and 57-3-817.
Administrative History: Original rule filed February 29, 2016; effective May 29, 2016.

Tenn. Comp. R. & Regs. 0100-11-.07 CONDUCT OF INDUSTRY MEMBERS WITH RETAIL FOOD STORES

(1) The provisions of Rule 0100-06 shall apply to retail food stores, except as otherwise provided:

(a) An industry member may not provide stocking, rotating, or pricing services on the premises of a retail food store;

(b) An industry member may provide product displays, signs, point of sale advertising materials, equipment, supplies, and other items authorized by Rule 0100-06-.03, provided:

Such items are provided solely to a permitted manager; and 2. The industry member may not set up any such display, sign, or item, or perform any service or action whatsoever regarding such item, other than the provision of such item to the permitted manager;
An industry member or TABC permitted representative may provide routine business entertainment pursuant to Rule 0100-06-.03(5) and (6) and educational seminars pursuant to Rule 0100-06-.03(11) to be conducted only upon the industry member’s non-bonded TABC licensed premises, provided that such routine business entertainment and educational seminars may only be provided to permitted managers and the licensee, if the licensee is an individual, and to no other employees or agents of the retail food store; and 4. Samples of wine may not be provided upon the retail food store’s premises pursuant to Rule 0100-06-.03(11). Samples may only be provided to a permitted manager or licensee, if licensee is an individual, as part of an educational seminar as authorized in this rule and Rule 0100-06-.03(11).

(c) An industry member may not provide or sell to a retail food store any combination package containing wine as otherwise authorized by Rule 0100-06-.03(10).

(2) The provision of any product display, sign, point of sale advertising material, equipment, supply, or other item by a licensed wholesaler solely with regards to beer or other items that are not alcoholic beverages may be provided pursuant to all local ordinances and federal law.

(3) No TABC licensed industry member or any employee, agent, representative or salesperson employed by or representing any such TABC licensed industry member 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 wine inventory owned or purchased by the retail food store licensee. This prohibition shall apply to its TABC licensed industry member if the service is being performed with relation to wine, or alcoholic beverages but not beer. This prohibition shall not apply to any wholesaler, manufacturer or importer of beer or non-alcoholic items that is not licensed by the Commission.

History

Authority: T.C.A. §§ 57-1-209, 57-3-104(c)(4) and (9), 57-3-815, and 57-3-907.
Administrative History: Original rule filed February 29, 2016; effective May 29, 2016.

Chapter 0100-13 Rules for Manager Permits

Tenn. Comp. R. & Regs. 0100-13-.01 MANAGER PERMITS

(1) A manager permit shall be required of any individual operating, supervising, or managing a retail package store licensed pursuant to T.C.A. § 57-3-204 and any individual (e.g. a designated manager) in actual control of the wine operation at a retail food store licensed pursuant to T.C.A. § 57-3-801 et seq.

(2) Notwithstanding the provisions of 0100-06-.05(1) above, any individual may be issued both an off-premise retail employee permit and an on-premise server permit if that individual has completed and submitted the appropriate applications. Further, that person must qualify for and meet all the requirements to obtain each permit.

(3) An individual licensed as a sole proprietorship pursuant to T.C.A. §§ 57-3-204 or 57-3-801 et seq., shall be authorized to engage in the activities outlined herein without the requirement of a manager permit.

(4) A manager permit may be suspended or revoked by the Commission for any violation of Title 57 of the Tennessee Code or the rules and regulations of the Commission committed by the holder of the manager permit or by any person operating under the supervision of the holder of the manager permit. A manager permit may also be suspended or revoked if the permittee no longer meets the requirements for the issuance of the manager permit pursuant to T.C.A. § 57-3-221.

History

Authority: T.C.A. §§ 57-1-209, 57-3-104, 57-3-221, and 57-3-812.
Administrative History: Original rule filed November 21, 2017; effective February 19, 2018.

Tenn. Comp. R. & Regs. 0100-13-.02 OBTAINING A MANAGER PERMIT

(1) Any individual seeking a manager permit shall complete the application form established by the Commission, along with a completed declaration of citizenship (Form AB-0116) and any other information that the Tennessee Alcoholic Beverage Commission may request.

(2) Any applicant for a manager permit shall pay the permit fee to the Commission prior to being issued the permit. This permit fee is $50.00 pursuant to T.C.A. § 57-3-221(c).

(3) Any individual who either has a manager permit or is seeking a manager permit shall annually attend:

(a) Either a responsible beer vendor training program pursuant to Chapter 0100-08 or a responsible wine vendor training program pursuant to Chapter 0100-12; and (b) A one (1) hour course taught by the Commission or by an entity authorized by the Commission, at such place and time as may be specified by the Commission. Such one (1) hour course may cover any material deemed appropriate by the Commission and may include, but not necessarily be limited to, a review of recent changes in the February, 2018 2 law, a review of certain statutes, rules, and regulations as decided upon by the Commission, and an opportunity for a question and answer session.

(4) Any individual applying for a manager permit shall attend, and provide proof of attendance to, the training program and the training course required by paragraph (3) of this rule prior to the issuance of a manager permit to such individual. Any such training shall be valid for only one (1) year, and any such training attended more than one (1) year from the date of application for a manager permit shall not be sufficient to satisfy the requirements of this rule.

History

Authority: T.C.A. §§ 57-3-104 and 57-3-221.
Administrative History: Original rule filed November 21, 2017; effective February 19, 2018.

Chapter 0100-14 Access to Public Records Held by the Commission

Tenn. Comp. R. & Regs. 0100-14-.01 PURPOSE AND SCOPE

(1) Pursuant to T.C.A. § 10-7-503(g), the purpose of the following public records rules are to provide timely and efficient access to public records of the Commission while at the same time preserving the confidentiality and protection of records or information as provided under state and federal law.

(2) The Tennessee Public Records Act provides that all state public records shall, at all times during regular business hours, be open for personal inspection by any citizen of this state, and those in charge of the records shall not refuse such right of inspection to any citizen, unless otherwise provided by state law.

(3) Through the Public Records Request Coordinator, the Tennessee Alcoholic Beverage Commission shall timely and efficiently provide access and assistance to persons requesting to view or receive copies of public records. No provisions of this Rule shall be used to hinder access to open public records. However, the integrity and organization of public records, as well as the efficient and safe operation of the Commission, shall be protected as provided by current law. Questions about these Rules should be addressed to the Commission’s Public Records Request Coordinator or to the Tennessee Office of Open Records Counsel (“OORC”).

History

Authority: T.C.A. § 10-7-503.
Administrative History: New rules filed February 9, 2024; effective May 9, 2024.

Tenn. Comp. R. & Regs. 0100-14-.02 DEFINITIONS

(1) “Commission” or “TABC” means the Tennessee Alcoholic Beverage Commission.

(2) “Public Record” means all documents, papers, letters, maps, books, photographs, microfilms, electronic data processing files and output, films, sound recordings, or other material, regardless of physical form or characteristics, made or received pursuant to law or ordinance or in connection with the transaction of official business by any governmental agency.

(3) “Public Records Request Coordinator” or “PRRC” means the individual(s) whose responsibility it is to ensure public record requests are routed to the appropriate records custodian and fulfilled in accordance with the Tennessee Public Records Act.

(4) “Records Custodian” means the office, official, or employee lawfully responsible for the direct custody and care of a public record. The records custodian is not necessarily the original preparer or receiver of the record.

May, 2024 2 (5) “Requester” means a citizen of the State of Tennessee seeking access to a public record, whether for inspection or duplication.

(6) “Tennessee Public Records Act” or “TPRA” means the State law codified in T.C.A. §§ 10-7- 503, et seq.

History

Authority: T.C.A. § 10-7-503.
Administrative History: New rules filed February 9, 2024; effective May 9, 2024.

Tenn. Comp. R. & Regs. 0100-14-.03 REQUESTS FOR ACCESS TO PUBLIC RECORDS

(1) Public record requests, whether written or oral, shall be made to the PRRC or designee to ensure that such requests are routed to the appropriate records custodian and fulfilled in a timely manner.

(2) Public record requests shall include the following information clearly and concisely expressed:

(a) Name and Tennessee contact information, including telephone and email address (in order to provide any communication required under the TPRA);

(b) Detailed description of the records being requested, including type, time frame, subject matter or key words, and any other information identifying the records;

(c) Statement whether the request is for inspection or receipt of copies, or both; and (d) Delivery preference if requesting copies.

(3) Proof of Tennessee citizenship by the presentation of a valid, unexpired state government issued photo identification is required in order to inspect or receive copies of public records. If a person does not possess photo identification or validity of the identification is in question, the PRRC may require other forms of identification. Upon a satisfactory showing, such proof of state citizenship will not be kept or retained by the PRRC. If copies of documentation are provided by mail or electronically to the PRRC, after verification, the information will be disposed of in such a way as to maintain the confidentiality of the information.

(4) Requests for access to inspect public records maintained or received by the Commission may be made to the PRRC in person, by mail, telephone, fax, or email.

(5) Requests for copies, or requests for inspection and copies of public records, shall be made in writing. A requester may use the TABC Public Records Request form available on the TABC website. If the TABC Public Records Request form is not used, the written request must still contain all information required under (2) of this section.

(6) Requests not made in an appropriate manner or requests that are not directed to the PRRC as provided herein, will not be accepted. Requests made via any method other than those prescribed herein will not be accepted.

(7) The contact information for the PRRC is as follows:

Tennessee Alcoholic Beverage Commission ATTN: Public Records Request Coordinator Davy Crockett Tower, 500 James Robertson Parkway, 3rd Floor Nashville, Tennessee 37243 Phone: 615-741-1602 Fax: 615-741-0847 May, 2024 3 Email: TABC.PublicRecords@tn.gov (8) Any changes to the contact information for the PRRC shall be posted on the TABC’s website.

History

Authority: T.C.A. § 10-7-503.
Administrative History: New rules filed February 9, 2024; effective May 9, 2024.

Tenn. Comp. R. & Regs. 0100-14-.04 RESPONSES TO REQUESTS FOR PUBLIC RECORDS

(1) Public Records Request Coordinator.

(a) The PRRC shall review public records requests and determine the following:

Whether the requester has provided evidence of Tennessee citizenship pursuant to Rule 0100-14-.03(3);
Whether the records requested are described with sufficient specificity to identify them;
Whether the TABC is the custodian of the records; and 4. Whether the records requested, or any of their contents, are protected and, thus, not subject to disclosure based on applicable federal or state law or rules.

(b) The PRRC shall acknowledge receipt of the request and take any of the following appropriate actions:

Inform the requester of this rule chapter and the determinations made regarding:

(i) Evidence of Tennessee citizenship;

(ii) Fees (and labor threshold and waivers, if applicable);

(iii) Aggregation of multiple or frequent requests; or (iv) Need for clarification of the request(s).

As appropriate, deny the request in writing and provide the appropriate ground(s) for denial, which may include:

(i) The requester is not a Tennessee citizen or has not presented evidence of Tennessee citizenship;

(ii) The request lacks specificity. The Commission may work with a requester to clarify the request;

(iii) An exemption makes the requested record protected from disclosure;

(iv) TABC is not the custodian of the requested records;

(v) The records requested do not exist; or (vi) Any other legal grounds for denial.

As appropriate, contact the requester to see if the request can be narrowed or otherwise clarified.

May, 2024 4 4. Forward the records request to the appropriate records custodian within TABC.

If requested records are in the custody of a different governmental entity, and the PRRC knows the correct governmental entity, advise the requester of the correct governmental entity and PRRC for that entity, if known.

(2) Records Custodian.

(a) Upon receiving a public records request, a TABC records custodian in collaboration with the PRRC shall gather the requested public records in accordance with T.C.A. § 10-7- 503. Before making the records available, General Counsel or his/her designee shall conduct a review to ensure the preservation of confidential or protected information as provided in state and federal law.

(b) If it is not practicable to promptly provide the requested records, the records custodian in collaboration with the PRRC shall, within seven (7) business days from the records custodian’s receipt of the request, direct the PRRC to send the requester a written response indicating the reason for the delay and an estimate of the additional time necessary to produce the records or information. Reasons for delay may include:

To determine whether the requested records exist;
To search for, retrieve, or otherwise gain access to records;
To determine whether all or part of the records are open or confidential;
To redact records; or 5. For other similar reasons.

(c) If a records custodian in collaboration with the PRRC denies a public records request, the PRRC shall deny the request in writing.

(d) If a records custodian in collaboration with the PRRC reasonably determines that production of records should be segmented because the records request is for a large volume of records, or additional time is necessary to prepare the records for access, the PRRC’s response shall notify the requester that production of the records will be in segments and that a records production schedule will be provided as expeditiously as practicable. As appropriate, the records custodian or PRRC should contact the requester to see whether the request can be narrowed.

(e) If a records custodian discovers that records responsive to a request were omitted, the records custodian shall promptly contact the PRRC concerning the omission and produce the records as quickly as practicable. The PRRC will contact the requester and supplement the records response.

History

Authority: T.C.A. §§ 10-7-503 and 10-7-504.
Administrative History: New rules filed February 9, 2024; effective May 9, 2024.

Tenn. Comp. R. & Regs. 0100-14-.05 REDACTION OF RECORDS

(1) If a record contains confidential information, or information that is not open for public inspection, the PRRC or the records custodian shall prepare a redacted copy of the record and consult with General Counsel or his/her designee before providing access to the records.

May, 2024 5 (2) Whenever a redacted record is provided, the PRRC will provide the requester with the general

basis for redaction without revealing confidential or protected information.

History

Authority: T.C.A. §§ 10-7-503 and 10-7-504.
Administrative History: New rules filed February 9, 2024; effective May 9, 2024.

Tenn. Comp. R. & Regs. 0100-14-.06 INSPECTION AND COPIES

(1) For inspection of public records:

(a) There shall be no charge for the inspection of public records.

(b) The location for inspection of public records will be in the office location of the PRRC in Nashville and such inspection will occur during the Commission’s normal business hours.

(c) Under reasonable circumstances, the PRRC may require an appointment for inspection or may require inspection of records at an alternate location.

(2) If after viewing the records, a requester wishes to obtain copies, the Commission will make copies and assess charges in accordance with Rule 0100-14-.07, or copies may be made as follows:

(a) A requester may use a personal camera or cell phone to take a photograph of a public record so long as the organization and integrity of the record is maintained. If a record contains confidential or protected information, the record may not be photographed until all appropriate redactions are completed.

(b) The requester will not be allowed to connect any personal equipment to a TABC computer or electronic device, including but not limited to utilizing a flash drive, in order to make copies of public records.

(3) Upon receipt of a request for copies of open public records, the Commission shall calculate the cost based on copy and labor charges for the entire request, or pro-rate the charges on a per page basis and promptly make the copies available to the requester in the following manner:

(a) For pickup at a location specified by the PRRC;

(b) By regular mail delivery through the United States Postal Service to the requester’s home or other acceptable address within Tennessee; or (c) Electronic records that can be sent in a single transmission will be sent by email, except when such records include personally identifiable information.

History

Authority: T.C.A. § 10-7-503.
Administrative History: New rules filed February 9, 2024; effective May 9, 2024.

Tenn. Comp. R. & Regs. 0100-14-.07 FEES, PAYMENTS, AND WAIVERS

(1) The Commission shall assess charges for copying and labor required to produce copies of the requested public records based on the most current version of the Schedule of Reasonable Charges issued by the OORC. The Schedule of Reasonable Charges is available on the Tennessee Comptroller of the Treasury’s website on the OORC page.

(2) The PRRC will provide requesters with an itemized written estimate of the charges prior to producing copies of records. Requesters must pay the estimate before the records will be released.

May, 2024 6 (3) When fees for copies and labor do not exceed ten dollars ($10.00), the fees may be waived by the PRRC.

(4) Fees associated with aggregated record requests will not be waived.

(5) Payment of charges shall be payable to the Commission by cashier’s check, money order, or other reliable means determined by the TABC, and delivered as specified by the PRRC.

History

Authority: T.C.A. § 10-7-503.
Administrative History: New rules filed February 9, 2024; effective May 9, 2024.

Tenn. Comp. R. & Regs. 0100-14-.08 AGGREGATION OF FREQUENT AND MULTIPLE REQUESTS

(1) TABC will aggregate record requests for records of TABC when four (4) or more requests are received within a calendar month either from a single individual or a group of individuals deemed working in concert by the PRRC.

(2) The PRRC is responsible for making the determination that a group of individuals are working in concert, and upon such determination, shall inform the individuals that they have been deemed to be working in concert and that requests will be aggregated.

(3) Routinely released and readily accessible records shall be excluded from aggregation. Such records include, but are not limited to, notices, orders, agendas, meeting minutes, and other materials that are accessible on the Tennessee Alcoholic Beverage Commission’s website.

History

Authority: T.C.A. § 10-7-503.
Administrative History: New rules filed February 9, 2024; effective May 9, 2024.

Tenn. Comp. R. & Regs. 0100-14-.09 FAILURE TO INSPECT OR FAILURE TO PAY FOR COPIES

(1) If a requester makes two (2) or more requests to view a public record within a six-month period and, for each request, the requester fails to view the public record within fifteen (15) business days of receiving notification that the record is available to view, or misses two (2) or more scheduled appointments to view, TABC will not comply with any public records request from the requester for a period of six (6) months from the date of the second request to view the public record unless the TABC determines failure to view the public record was for good cause.

(2) If, after agreeing to pay an estimated cost prior to the production of copies, a requester fails to pay the cost to produce the requested copies, TABC will not comply with any public record requests from the requester until payment is received.

History

Authority: T.C.A. § 10-7-503.
Administrative History: New rules filed February 9, 2024; effective May 9, 2024.

Chapter 0100-15 Rules for Suppliers and Wholesalers of Hemp-Derived Cannabinoid Products

Tenn. Comp. R. & Regs. 0100-15-.01 SCOPE

(1) This chapter applies to any person who supplies or distributes in commerce any hemp-derived cannabinoid product (“HDCP”).

(2) Persons that supply or distribute HDCPs are subject to all requirements and regulatory

authority applicable to the type of product sold including, but not limited to, regulation under the Act and this chapter, and T.C.A. Title 57, Chapter 7, and Title 39, Chapter 17, Part 15.

HDCPs are excluded from all regulatory exemptions including, but not limited to, those afforded under the Food Freedom Act at T.C.A. § 53-1-118.

(3) The Commission will not refund fees for early termination of any license issued under this

chapter.

(4) Licenses under this chapter are not transferable from person to person or location to location.

History

Authority: T.C.A. §§ 57-7-101, et seq., and Public Chapter 526, enacted 2025.
Administrative History: Emergency rules filed December 26, 2025; effective through June 24, 2026. New rules filed March 11, 2026; effective June 9, 2026.

Tenn. Comp. R. & Regs. 0100-15-.02 DEFINITIONS

(1) Terms in this chapter share those meanings of terms in T.C.A. Title 57, Chapter 7.

(2) When used in this chapter, unless the context requires otherwise:

(a) “Act” means Public Chapter 526, enacted 2025;

(b) “Batch,” in addition to its definition under the Act, is an individual production lot of manufactured product;

(d) “Certificate of Analysis” (COA) means a written document from a laboratory approved by the Commission or testing samples under this chapter, and which communicates the results of those tests performed;

(e) “Commerce” or similar words mean involving payment for an item or payment for services incident to production of the item;

(f) “Commission” means the Tennessee Alcoholic Beverage Commission;

(g) “Distribute” means to transport or to introduce into commerce and includes delivery for sale, manufacturing, or holding for subsequent sale or manufacturing;

(h) “Food” means articles used for food or drink for humans or other animals, chewing gum, and articles used for components of food or drink or chewing gum;

(i) “Hemp-Derived Cannabinoid Product (“HDCP”) is a product that contains or is labeled to reflect it contains a hemp-derived cannabinoid that is produced, marketed, or otherwise intended to be consumed orally (“ingestible”), inhaled (“inhalable”), or absorbed through the skin (“transdermal”). HDCPs also include intermediate products intended for subsequent use as a component in a later finished ingestible, inhalable, or transdermal HDC product;

(j) “In a manner similarly reliable to post-decarboxylation” means a manner sufficient to quantify by percentage the resulting THC of a sample if carboxyl groups are removed from all molecules containing THC within the sample. A manner similarly reliable to postdecarboxylation is shown by a post-decarboxylation THC value equal to the sum of the sample’s THC percentage plus the product of its delta-9 tetrahydrocannabinolic acid (THCa) percentage and 0.877;

(k) “Manufacture,” in addition to its definition under the Act, includes actions that physically or chemically transform cannabis beyond its principal form as a farm product or filters, cleans, or trims that product to isolate any of its particular parts or components;

(l) “Move,” “transport,” or similar words mean to relocate in any manner an item from one location to another;

(m) “Person” means an individual, partnership, corporation, or any other form of legal entity;

(n) “Sample” means to take material or the material taken from a location used to manufacture or distribute HDCPs;

(o) “Serving,” in addition to its definition under the Act, means an amount of product designated by its manufacturer as reasonably understood to be a single unit of the product for consumption.

History

Authority: T.C.A. §§ 57-7-102, 57-7-104(b)(2), 57-7-109, and 57-7-116.
Administrative History: Emergency rules filed December 26, 2025; effective through June 24, 2026. New rules filed March 11, 2026; effective June 9, 2026.

Tenn. Comp. R. & Regs. 0100-15-.03 LICENSE APPLICATIONS AND FEES

(1) Transitional Denial Authority for Prior Title 43 Violations (a) For a period of one (1) year from the date of a violation, the Commission may deny a license application submitted by any person or entity that was previously licensed under Tennessee Code Annotated, Title 43 by the Department of Agriculture, if the applicant has committed a violation of Title 43 for selling hemp-derived cannabinoid products without the proper license, or selling products that fail to meet the requirements of 43- 27-209(a), or selling any controlled substance as defined by Title 39.

(b) For purposes of this section, a “violation” means either:

A finding of violation contained in a final order issued by the Department of Agriculture or another state agency under Title 43 or court under Title 39; or 2. Conduct for which no adjudication has occurred, but which the Commission, after providing written notice of intent to deny and an opportunity for an evidentiary hearing, determines by a preponderance of the evidence to have constituted a violation of the above.

(c) The Commission’s authority under this section is discretionary. In determining whether to deny a license under this rule, the Commission may consider mitigating or aggravating circumstances, including, without limitation:

The nature and seriousness of the violation;
The applicant’s history of compliance with state law;
Any corrective actions taken by the applicant; and 4. The time elapsed since the violation occurred.

(d) Nothing in this section precludes an applicant from submitting a license application during the one-year period following a violation; however, the Commission may rely on such violation(s) as a basis for denial within that period.

(2) An HDCP supplier license is required per person per location for any person that manufactures or distributes HDC product in commerce.

(3) An HDC supplier license application must be submitted in a manner specified by the Commission. In addition to submitting to a physical inspection of the address seeking licensure, if located in Tennessee, applicants must provide the Commission with the following:

(a) Legal name and D/B/A for the business seeking licensure;

(b) Physical and mailing address for the business seeking licensure;

(d) Valid government issued photo identification for any person in an applicant;

(e) Tennessee Bureau of Investigation or Federal Bureau of Investigation criminal background check that includes fingerprint checks for any person legally responsible for the management of applicant’s operations;

(f) Proof of registration in its state of incorporation for any applicant that is a formalized business entity;

(g) Sufficient information to establish that applicant is registered with the Tennessee Department of Revenue to pay applicable taxes;

(h) Architectural diagram of the physical space, which includes square footage and dimensions;

(i) Verification that the applicant has a legal right to the premises seeking licensure;

(j) Business hours of applicant;

(k) Acknowledgement that business will operate in accordance with state law;

(l) Compliance with the Eligibility Verification for Entitlements Act as codified in T.C.A. §§ 4-58-101, et seq; and (m) Any other information, required by the Commission, to determine an applicant’s eligibility for the licensure sought.

(4) An HDC wholesaler license is required per person per location for any person who distributes HDCPs into retail commerce.

(5) HDC wholesaler license applications must be submitted in a manner specified by the Commission. In addition to submitting to a physical inspection of the address seeking licensure, applicants must provide the Commission with the following:

(a) Legal name and D/B/A for the business seeking licensure;

(b) Physical and mailing address for the business seeking licensure;

(d) Tennessee Bureau of Investigation or Federal Bureau of Investigation criminal background check that includes fingerprint checks for any person legally responsible for the management of applicant’s operations;

(e) Valid government issued photo identification for any person in a business seeking licensure;

(f) Proof of registration in its state of incorporation for any applicant that is a formalized business entity;

(g) Sufficient information to establish that applicant is registered with the Tennessee Department of Revenue to pay applicable taxes;

(h) Security plan;

(i) Architectural diagram of the physical space, which includes square footage, dimensions, and a description of how product will be received, inventoried, stored, and packaged;

(j) Owner affidavit confirming warehouse space meets the requirements set forth in T.C.A. § 57-7-106(f)(1)(E)(i);

(k) Verification that the applicant has a legal right to the premises seeking licensure;

(l) Business hours of applicant;

(m) Records storage and records security policy;

(n) Certificate of Occupancy;

(o) Detailed business plan;

(p) Proof of financial eligibility as set forth in T.C.A. § 57-7-106(f)(1)(E)(iv); and, (q) Any other information, required by the Commission, to determine an applicant’s eligibility for the licensure sought.

(6) Licensees must notify the Commission in a manner approved by the Commission, of any changes to the contents of their approved application within thirty (30) days of the change, including any change in contact information.

(7) Payment of an annual HDC supplier and wholesaler license fee is due upon approval of an application and must be paid in full prior to a license being issued. The license fee may be prorated in the initial year of licensure or following the business obtaining additional licenses, provided the total prorated fee does not exceed the annual license fee.

(8) HDC supplier and wholesaler licenses expire one (1) year from the date of issuance, unless the licensee holds more than one (1) TABC issued license, and the Commission prorated the license fee to permit the business to align license expiration dates.

(9) It is the responsibility of the licensee to submit to an annual inspection, if applicable, provide a complete renewal application in a manner specified by the Commission, provide an updated criminal background check for each applicable individual, and remit payment of the annual license fee prior to the expiration of the license. The expiration date printed on the license serves as notice of the need to renew the license by the expiration date, and no additional notice is required. HDC licenses will be closed on the business day after expiration if both a renewal application and a license fee have not been received. If the Commission receives an application and license fee prior to the license expiration date, the Commission will toll closing the license, and the license will remain valid until the Commission reviews the application. The applicant shall resolve any outstanding issues and submit any additional documentation to the Commission no later than 30 days after the license expiration date for renewal application processing. Licenses that the Commission does not renew within thirty (30) days of the license expiration date will be closed. The renewal process is complete when the Commission issues an updated license.

(10) The Commission may deny any application for licensure that it deems incomplete because it lacks required documents or information or that is not completed in conformance with this rule.

History

Authority: T.C.A. §§ 57-7-106 and 57-7-116.
Administrative History: Emergency rules filed December 26, 2025; effective through June 24, 2026. New rules filed March 11, 2026; effective June 9, 2026.

Tenn. Comp. R. & Regs. 0100-15-.04 SUPPLIERS

(1) General requirements:

(a) Suppliers are prohibited from offering HDCPs for sale in Tennessee if the products fail to meet the following requirements:

Each product offered must contain a unique batch number;
HDCPs may not contain nicotine; and, 3. Dimethylsulfoxide may not be used in any HDC product.

(2) Inhalable HDCPs:

(a) Suppliers may not supply an inhalable HDC product made with a non-hemp-derived cannabinoid ingredient unless the ingredient is listed in, and the concentration and route of the ingredient is authorized under, the federal Food and Drug Administration (FDA) inactive ingredient database at https://www.accessdata.fda.gov/scripts/cder/iig/index.cfm.

(b) Suppliers may not supply inhalable HDC product in which any of the following substances are used in its manufacture.

Vitamin E acetate;
Medium-chain triglycerides;
Polyethylene glycol;
Propylene glycol; or, 5. 2, 3-butanedione.

(c) Suppliers are prohibited from supplying HDCPs that have failed aW (water activity) testing. HDCPs that are in the category of edibles (i.e. infused products, gummies) shall be deemed compliant if the aW is less than 0.85. HDCPs that are in the category of inhalable (i.e. pre-roll, flower, oil, vape cartridge) shall be deemed complaint if the aW is less than 0.65.

(3) Solvents. Suppliers are barred from providing HDC product in Tennessee in which solvents were used in its manufacture. Use of the following substances are allowable exceptions: water, vegetable glycerin, vegetable oils, animal fats, butane, propane, carbon dioxide, ethanol, isopropanol, acetone, heptane, ethyl acetate, and pentane.

(a) If butane, propane, heptane, or pentane is used as a solvent, the solvent must be documented on its COA as at least 99 percent purity and the applicable COA must be maintained for two years.

(b) If water, vegetable glycerin, vegetable oil, animal fat, carbon dioxide, ethanol, isopropanol, acetone, or ethyl acetate is used as a solvent, the solvent must be food grade according to FDA standards under 21 CFR Part 174.

(4) Manner of Sale. HDC suppliers are prohibited from selling HDCPs for resale in Tennessee to any person that is not an HDC licensed supplier or wholesaler.

History

Authority: T.C.A. §§ 57-7-102, 57-7-106, 57-7-107, and 57-7-116; and 21 CFR Part 174.
Administrative History: Emergency rules filed December 26, 2025; effective through June 24, 2026. New rules filed March 11, 2026; effective June 9, 2026.

Tenn. Comp. R. & Regs. 0100-15-.05 DISTRIBUTORS

(1) General requirements:

(a) Wholesalers are prohibited from offering HDCPs for sale in Tennessee if the products do not meet the following requirements:

Each product offered must contain a unique batch number;
HDCPs may not contain nicotine; and 3. Dimethylsulfoxide may not be used in any HDC product.

(2) Inhalable HDCPs:

(a) Wholesalers may not distribute inhalable HDC product made with a non-hemp-derived cannabinoid ingredient unless the ingredient is listed in, and the concentration and route of the ingredient is authorized under, the federal Food and Drug Administration (FDA) inactive ingredient database at https://www.accessdata.fda.gov/scripts/cder/iig/index.cfm.

(b) Wholesalers may not supply inhalable HDCPs in which any of the following substances are used in its manufacture:

Vitamin E acetate;
Medium-chain triglycerides;
Polyethylene glycol;
Propylene glycol; or, 5. 2, 3-butanedione.

(c) Wholesalers are prohibited from supplying HDCPs that have failed aW (water activity) testing. HDCPs that are in the category of edibles (i.e. infused products, gummies) shall be deemed compliant if the aW is less than 0.85. HDCPs that are in the category of inhalable (i.e. pre-roll, flower, oil, vape cartridge) shall be deemed complaint if the aW is less than 0.65.

(3) Solvents. Wholesalers are not permitted to dispense HDCPs in Tennessee in which solvents were used in its manufacture. Use of the following substances are allowable exceptions: water, vegetable glycerin, vegetable oils, animal fats, butane, propane, carbon dioxide, ethanol, isopropanol, acetone, heptane, ethyl acetate, and pentane.

(a) If butane, propane, heptane, or pentane is used as a solvent, the solvent must be documented on its COA as at least 99 percent purity.

(4) Manner of Sale. HDCP wholesalers are prohibited from selling or offering to sell HDCPs for resell in Tennessee to any person that is not an HDCP licensed wholesaler or retailer.

History

Authority: T.C.A. §§ 57-7-102, 57-7-106, 57-7-107, and 57-7-116; and 21 CFR Part 174.
Administrative History: Emergency rules filed December 26, 2025; effective through June 24, 2026. New rules filed March 11, 2026; effective June 9, 2026.

Tenn. Comp. R. & Regs. 0100-15-.06 SAMPLING AND TESTING

(1) Frequencies.

(a) HDCP supplier licensees must sample and test each batch of product created from hemp or hemp products for conformance with this rule. Once full panel testing required by this

rule is conducted on hemp or a hemp product, additional testing in downstream commerce is not required except as provided:

After the initial HDCP in commerce conforms to testing under subparagraph (a), if a downstream HDCP supplier uses the product as an input to make a new HDCP and during production of the new product the HDCP input underwent either a chemical change (e.g. through exposure to heat or solvents) or a reconstitution through addition or removal of other components, the supplier must cause each batch of new HDCP to be sampled and tested for conformance with this rule.
After the initial HDC product in commerce conforms to testing under subparagraph (a), if a downstream HDC supplier uses the product as an input to make a new HDC product but does not alter the chemical composition or formulation of the HDC product compared to the input used (e.g. raw flower that is only physically changed through cutting and filtering or bulk orders that are repackaged into smaller units of like product), additional sampling and testing of the resulting product batches are not required and prior test results in commerce of HDCs within the product are presumptively valid. This part shall not limit the Commission’s

authority to test any cannabis products for compliance with the Act and this

chapter.

(b) Prior to transport of any HDC product in commerce, HDC suppliers must confirm conformance of the batch to all testing requirements under this rule.

(2) Standards. Tolerances for each required testing analyte are listed below. Any test result exceeding allowable limits is grounds for embargo, recall, remediation, or destruction of the entire batch represented by the sample, regardless of whether the test result is discovered through manufacturing testing or subsequent sampling and testing of retail HDC product.

(a) For all HDCPs:

Hemp-derived cannabinoids:

(i) Tetrahydrocannabiphorol (THCp)

(ii) THC-O Acetates (iii) Tetrahydrocannabiphorol acetate (THCP-O)

(iv) Synthetic cannabinoids 2. Microbial contaminants:

(i) Shiga toxin-producing Escherichia coli (undetectable in at least one gram)

(ii) Salmonella spp. (undetectable in at least one gram);

Mycotoxins:

Mycotoxins Limit (μg/kg)

Total Aflatoxin amount (sum of B1, B2, G1, G2, if determined individually) <20 Ochratoxin A <20 Microorganism Analyte Limit Aspergillus fumigatus, Asperigillus flavus, Aspergillus niger, Aspergillus terreus Not detected in 1 gram Salmonella Spp Not detected in 1 gram Siga toxin-producing Escherichia coli Not detected in 1 gram TYMC / TAMC Limit (cfu/g)

Total Yeast and Mold Count <10,000 Total Aerobic Microbial Count <100,000 4. Residual pesticides:

Residual pesticide Chemical Abstract Service (CAS) assigned number Maximum allowable concentration stated in parts per million (ppm)

Abamectin 71751-41-2 0.5 ppm Acephate 30560-19-1 0.4 ppm Acequincoyl 57960-19-7 2.0 ppm Acetamiprid 135410-20-7 0.2 ppm Aldicarb 116-06-3 0.4 ppm Azoxystrobin 131860-33-8 0.2 ppm Bifenthrin 82657-04-3 0.2 ppm Bifenazate 149877-41-8 0.2 ppm Boscalid 188425-85-6 0.2 ppm Carbaryl 63-25-2 0.4 ppm Carbofuran 1563-66-2 0.2 ppm Chlorantraniliprole 500008-45-7 0.2 ppm Chlorfenapyr 122453-73-0 1.0 ppm Chlormequat chloride 999-81-5 0.2 ppm Chlorpyrifos 2921-88-2 0.2 ppm Clofentezine 74115-24-5 0.2 ppm Cyfluthrin 68359-37-5 1.0 ppm Cypermethrin 52315-07-8 1.0 ppm Daminozide 1596-84-5 1.0 ppm DDVP (Dichlorvos) 62-73-7 0.1 ppm Diazinon 333-41-5 0.2 ppm Dimethoate 60-51-5 0.2 ppm Ethoprophos 13194-48-4 0.2 ppm Etofenprox 80844-07-1 0.4 ppm Etoxazole 153233-91-1 0.2 ppm Fenpyroximate 111812-58-9 0.4 ppm Fenoxycarb 72490-01-8 0.4 ppm Fipronil 120068-37-3 0.4 ppm Flonicamid 158062-67-0 1.0 ppm Fludioxonil 131341-86-1 0.4 ppm Hexythiazox 78587-05-0 1.0 ppm Imazalil 35554-44-0 0.2 ppm Imidacloprid 138261-41-3 0.4 ppm Kresoxim-methy 143390-89-0 0.4 ppm Malathion 121-75-5 0.2 ppm Metalaxyl 57837-19-1 0.2 ppm Methiocarb 2032-65-7 0.2 ppm Methomyl 16752-77-5 0.4 ppm Methyl parathion 298-00-0 0.2 ppm Myclobutanil 88671-89-0 0.2 ppm (prohibited at any concentration for inhalation)

Naled 300-76-5 0.5 ppm Oxamyl 23135-22-0 1.0 ppm Paclobutrazol 76738-62-0 0.4 ppm Permethrins (measured as the cumulative residue of cis- and trans-isomers) 52645-531 (54774-45-7 and 51877-74-8) 0.2 ppm Phosmet 732-11-6 0.2 ppm Piperonyl butoxide 51-03-6 2.0 ppm Prallethrin 23031-36-9 0.2 ppm Propiconazole 60207-90-1 0.4 ppm Propoxur 114-26-1 0.2 ppm Pyrethrins (measured as the cumulative residue of pyrethrin 1, cinerin 1 and jasmolin 1) 8003-34-7(121-21- 1,25402-06-6 and 4466- 14-2) 1.0 ppm Pyridaben 96489-71-3 0.2 ppm Spinosad 168316-95-8 0.2 ppm Spiromesifen 283594-90-1 0.2 ppm Spirotetramat 203313-25-1 0.2 ppm Spiroxamine 118134-30-8 0.4 ppm Tebuconazole 107534-96-3 0.4 ppm Thiacloprid 111988-49-9 0.2 ppm Thiamethoxam 153719-23-4 0.2 ppm Trifloxystrobin 141517-21-7 0.2 ppm 5. Heavy Metals:

Heavy Metal Limit (ppm)

Arsenic <0.2 Cadmium <0.2 Lead <0.5 Mercury <0.1 6. Residual solvents and manufacturing chemicals:

Solvent or manufacturing chemical CAS assigned number Maximum allowable concentration (ppm)

Acetone 67-64-1 1,000 ppm Benzene* 71-43-2 2 ppm Butanes, (measured as the cumulative residue of n-butane and iso-but) 106-97-8 and 75-28-5 1,000 ppm Ethanol 64-17-5 5,000 ppm Ethyl Acetate 141-78-6 1,000 ppm Heptanes 142-82-5 1,000 ppm Hexanes* (measured as the cumulative residue of n-hexane, 2methylpentane, 3-methylpentane, 2,2dimethylbutane, and 2,3dimethylbutane) 110-54-3, 107-83-5, 96-14-0, 75-83-2 and 79-29-8 60 ppm Methanol* 67-56-1 600 ppm Pentanes (measured as the cumulative residue of n-pentane, isopentane, and neo-pentane) 109-66-0, 78- 78-4 and 463-82-1 1,000 ppm 2-Propanol (IPA) 67-63-0 1,000 ppm Propane 74-98-6 1,000 ppm Toluene* 108-88-3 180 ppm Total Xylenes* (measured as the cumulative residue of 1,2dimethylbenzene, 1,3dimethylbenzene, and 1,4dimethylbenzene, and the nonxylene, ethylbenzene) 1330-20-7 (95-47-6, 108-38-3 and 106-42-3 and 100-41-4) 430 ppm Any other solvent not permitted for use undetected *These solvents are not individually approved for use. Due to their possible presence in other solvents that are approved for use, limits have been listed here for concentrations in final products.

(b) Additional testing requirements for HDCPs:

Microbial contaminants:

(i) Aspergillus A. fumigatus (undetectable in at least one gram);

(ii) Aspergillus A. flavus (undetectable in at least one gram);

(iii) Aspergillus A. niger (undetectable in at least one gram);

(iv) Aspergillus A. terreus (undetectable in at least one gram);

Heavy metals:

(i) Arsenic (<0.2 ppm);

(ii) Cadmium (<0.2 ppm);

(iii) Lead (<0.5 ppm);

(iv) Mercury (<0.1 ppm).

(3) Sampling. HDC product manufacturers must draw random samples for testing that are representative of each batch. For testing purposes, the sample must be in the final retail sales packaging:

Flower Samples must be packaged in final packaging as it would be sold to the consumer Oral (capsules, liquids, tinctures) Samples must be packaged in final packaging as it would be sold to the consumer Pre-rolled flower Samples must be packaged in final packaging as it would be sold to the consumer Oils for vaporization Samples must be packaged in final packaging as it would be sold to the consumer Topical Samples must be packaged in final packaging as it would be sold to the consumer Transdermal Samples must be packaged in final packaging as it would be sold to the consumer (4) Acceptable packaging for testing purposes includes, but is not limited to, sealed vaporization cartridges, edibles in mylar bags, flower in jars, pre-rolled flowers in tubes, and bottles of tincture. Final packaging, for testing purposes, does not require complete regulatory labeling, but, at minimum, must include the product name and form, specific unique lot or batch number, and net contents. While awaiting the COA, the remainder of the batch must be stored to prevent degradation, adulteration, contamination, or mix-up until such time that the final packaging can be applied.

(5) Testing.

(a) Third-Party Laboratories.

COAs required under this chapter may be supplied by a third-party laboratory provided the laboratory is registered with the Commission.
To register and to maintain registration with the Commission a third-party laboratory applicant must:

(i) Complete in full an application for registration in a method approved by the Commission.

(ii) Host and notify the Commission of one (1) landing page for retrieval of each applicable COA;

(iii) For any test method conducted pursuant to this rule, be fully accredited to standards established under International Organization for Standardization (ISO) 17025 by an International Laboratory Accreditation Cooperation recognized accreditation body;

(iv) Maintain ISO 17025 accreditation;

(v) The ISO 17025 accrediting body must be a member of the International Laboratory Accreditation Cooperation;

(vi) Test and report analyte(s) using limits of detection and quantitation no greater than the respective tolerance(s) under this chapter for the tested analyte(s);

(vii) Test and report hemp-derived cannabinoids under this chapter using a limit of quantitation <1 mg/g;

(viii) Perform and report component testing as detailed under this rule;

(ix) Store all samples in a secure manner that reasonably protects them from degradation, contamination, and tampering; and, prior to its disposal, render all sample material unusable;

(x) If available, produce reserve sample material to the Commission upon request; and, (xi) Provide other information as required by the Commission.

(xii) Registration is valid for two years from the date of approval.

Failure to adhere to these requirements or requirements for issuance of COAs under this rule is grounds for denial or revocation of any registration or authorization issued by the Commission.

(b) COAs.

Third-party laboratories must include at a minimum the following on each COA issued:

(i) The laboratory’s name and address as it is registered with the Commission;

(ii) The HDC product manufacturer’s name and address;

(iii) Date the lab received the product sample for testing;

(iv) The batch number and sample type represented by the sample;

(v) Unique identifying information for the sample, if applicable;

(vi) A photo and the state of the sample received (e.g. finished packaging). The photo must clearly indicate the batch number on the product sample;

(vii) Sample history including date received and date range of each test conducted on the sample;

(viii) Analytical methods, limits of detection, limits of quantitation, and test results for each analyte evaluated for the sample, regardless of whether the testing conducted is required by this rule;

(ix) Information about the testing method (e.g. name of the method, equipment used, and date of last validation);

(x) The result of the analysis for each type of analysis; a collective “pass”/“fail” assessment for the entire batch that accounts for either passage of all or failure of any one test conducted on the sample;

(xi) Attestation of the validity of the test results via a signature from an authorized representative, such as a laboratory director or quality assurance/quality control team member, and date the certificate is issued;

(xii) Date the COA was generated and reported; and (xiii) Laboratory accreditation information.

When reporting quantitative results, third-party laboratories must include in the COA the corresponding units of measurement as required for tolerances under this rule, as well as measurement uncertainties.
A result of “< LOQ” for any analyte detected below the limit of quantitation (LOQ).
A result of “ND” for any analyte that was tested for and not detected.
Retention samples must be maintained under registered conditions for two years, with access limited to laboratory personnel.

Retesting. Any sample failure may be resubmitted as follows for confirmation of testing failure.

(i) If a reserve sample was retained by the same third-party registered laboratory that produced the COA exhibiting a test failure, that laboratory may retest the reserve sample following the failed test to confirm component compliance. If a reserve sample was retained, the HDC manufacturer may request a retest within seven (7) days of being notified of the failure.

(ii) If the retested sample passes for the suspect component(s), a new sample from the same batch must be drawn and submitted to a second third-party registered laboratory for complete retesting of all components listed under this rule. Retesting may not be performed at a laboratory under the same ownership as the laboratory that performed the initial or a laboratory that was subcontracted to complete the initial testing. If the second retesting conforms to all required tolerances, the batch is deemed compliant with testing requirements and may be transported and distributed in commerce.

(iii) If a reserve sample is not available from the initial third-party registered laboratory or if a sample fails either of the retests, the batch is deemed nonconforming with regulatory requirements, and the batch must be held for destruction or remediation.

Remedy.

(i) Microbial contaminants. An HDCP supplier is prohibited from transporting or allowing transport of a batch that has failed microbial contaminant testing unless:

(I) The batch is further processed by a method that effectively sterilizes the batch, is retested, and those test results show conformance with required tolerances;

(II) The supplier submits a corrective action plan to the Commission or effective sterilization of the batch, receives written approval of the plan from the Commission or, (III) The batch is rendered unusable.

(ii) Over-concentrated product. An HDC product manufacturer is prohibited from transporting or allowing transport of a batch that has failed THC concentration testing unless:

(I) The batch is further processed by a method that effectively dilutes the batch, is retested, and those results show conformance with required tolerances;

(II) The manufacturer submits a corrective action plan to the Commission or effective dilution of the batch, receives written approval of the plan from the Commission or, (III) The batch is rendered unusable.

(iii) For all other component testing failures, an HDCP manufacturer must render the batch unusable prior to disposition.

Testing Variance.

(i) The measured cannabinoid content percentage for any product with a label claim content must be within fifteen percent of the label amount for each compound listed. If a wholesaler labels the package, the wholesaler must label the HDCP with cannabinoid content that is listed on the COA. The ±15% variance only applies when HDCPs are labeled on the package prior to the wholesaler taking possession for compliance testing.

History

Authority: T.C.A. §§ 57-7-102, 57-7-107, 57-7-110, and 57-7-116.
Administrative History: Emergency rules filed December 26, 2025; effective through June 24, 2026. New rules filed March 11, 2026; effective June 9, 2026.

Tenn. Comp. R. & Regs. 0100-15-.07 LABELS

(1) HDCP manufacturers must, in addition to labeling requirements under the Act, label each HDCP with the following:

(a) Batch number;

(b) Name and address of the HDC product manufacturer or wholesaler;

(d) A separate allergen statement, stating common name of allergen, if product contains any of the following ingredients: eggs; fish; milk; tree nuts; peanuts; sesame; shellfish; soy; or wheat;

(e) A QR code that links the viewer to the COA of the applicable product testing results conforming with the THC content methodology set forth in T.C.A. 57-7-102(15). A QR code that does not link to a valid COA, including the product’s batch number, date received, date of testing completion, and method of analysis, as established in T.C.A. § 57-7-107, will be considered invalid and a violation of this rule;

(f) Serving size of the product and the total number of servings per package of the product (applicable only for ingestible HDCPs);

(g) The numerical count, net weight, or net volume of the product per package. Net weight and net volume must be reported in standard and metric measurements.

(h) HDCP packaging and labeling may not contain any statement, illustration, or image that includes false, deceptive, or misleading statements or promotes over-consumption;

(i) HDCP packaging and labeling may not contain any statement, illustration, or image that depicts a child or other person under legal age consuming cannabis products;

(j) HDCP packaging and labeling may not contain any seal, flag, crest, coat of arms, or other insignia that could reasonably mislead a person to believe that the cannabis items or package has been endorsed, manufactured, or used by any state, country, county, municipality, or agency;

(k) HDCP packaging may not resemble or mimic the trademarked, characteristic, or productspecialized packaging of any commercially available food product, baked good, snack item, lollipop, chewing gum, candy, or beverage;

(l) HDCPs may not include a statement, artwork, or design that could reasonably mislead a person to believe that the package contains anything other than an HDCP;

(m) HDCPs may not include health claims that are false, misleading, or not supported by competent and reliable scientific evidence. Any permitted health-related information must include the statement: “This product has not been evaluated by the Food and Drug Administration and is not intended to diagnose, treat, cure, or prevent any disease,” unless the product has been evaluated by the Food and Drug Administration and may lawfully make such claims under federal law.

(n) If the label requirements cannot fit on the product, an outer package that contains a scannable QR code linking to the manufacturer’s website that lists the information is acceptable.

(2) Warning statements. HDCP manufacturers must include the following warning statement(s), printed in at least eleven (11) point font, easily legible font on the label panel of associated HDCPs, and shall be conspicuous and in distinct contrast (e.g. by typography, layout, color, or embossing) to other information on the package.

(a) For all HDCPs.

“Warning: Keep out of reach of children. Must be 21 or older to possess or consume. May be harmful to those who are pregnant or breastfeeding. May impair ability to drive or operate machinery. This product is not approved by FDA for cure, mitigation, treatment, or prevention of any disease.”
The word “Warning” must be printed in bold font, all capital letters.

(b) Additional warning statement for inhalable HDCPs.

“Warning: Inhalation of cannabis smoke has been associated with lung injury.”
The word “Warning” must be printed in bold font, all capital letters.
A person shall not manufacture or distribute any HDCP labeled as a dietary supplement.

History

Authority: T.C.A. §§ 57-7-106, 57-7-107, 57-7-110, and 57-7-116.
Administrative History: Emergency rules filed December 26, 2025; effective through June 24, 2026. New rules filed March 11, 2026; effective June 9, 2026.

Tenn. Comp. R. & Regs. 0100-15-.08 TRANSPORTATION

(1) In addition to transportation requirements under the Act, HDCP supplier licensees must make immediately available, upon request by the Commission, COAs for any HDCP, including raw product, that is transported in commerce.

History

Authority: T.C.A. §§ 57-7-109 and 57-7-116.
Administrative History: Emergency rules filed December 26, 2025; effective through June 24, 2026. New rules filed March 11, 2026; effective June 9, 2026.

Tenn. Comp. R. & Regs. 0100-15-.09 RECORDS

(1) For each batch of HDCP manufactured or distributed, HDCP supplier licensees shall maintain the following for two years;

(a) COAs, copies of which shall be submitted to all immediate downstream purchasers of the product;

(b) A current copy of safety data sheets for all solvents used in manufacturing the HDCP; and, (c) Invoices and bills of lading for all HDCP distribution conducted by the HDCP supplier licensee.

(2) For any HDCP rendered unusable or disposed pursuant to this chapter, HDCP supplier licensees must maintain documentation of the following for two years following disposal:

(a) Date(s) and manner(s) in which the product was rendered unusable and disposed;

(b) Batch number; and, (c) Total volume of product that was disposed.

(3) Any licensee, licensee’s agent, or licensee’s employee subjects the licensee to suspension or revocation of the HDCP supplier and wholesaler license if they refuse access to the premises, refuse to open or disclose records, refuse to furnish information, or furnish false or misleading records or information to an agent or representative of the Commission.

History

Authority: T.C.A. §§ 57-7-106, 57-7-110, and 57-7-116.
Administrative History: Emergency rules filed December 26, 2025; effective through June 24, 2026. New rules filed March 11, 2026; effective June 9, 2026.

Tenn. Comp. R. & Regs. 0100-15-.10 INSPECTIONS

(1) Scope. The Commission may enter any licensed premises or conveyance for purposes of inspecting and sampling any cannabis, HDCP, product lists, and labels, or other material and copying records necessary to determine compliance with the Act and this chapter.

(2) Frequency. The Commission may conduct inspections as often as necessary to determine compliance with the Act and this chapter.

History

Authority: T.C.A. §§ 39-17-1509, 57-7-105, 57-7-106, and 57-7-116.
Administrative History: Emergency rules filed December 26, 2025; effective through June 24, 2026. New rules filed March 11, 2026; effective June 9, 2026.

Tenn. Comp. R. & Regs. 0100-15-.11 VIOLATIONS

(1) In addition to other requirements of the Act and this chapter, persons subject to this chapter must:

(a) Maintain areas and vehicles where HDCPs are manufactured or distributed so as to be readily accessible for inspection;

(b) Provide adequate lighting necessary for inspection of all HDCPs manufactured or distributed;

(c) Provide full access to facilities, inventory, records, and invoices necessary for the Commission to inspect without a warrant;

(d) Give full information as to the source of any cannabis or HDC product currently or previously held in their possession;

(e) Consent to sampling of all HDCPs manufactured or distributed by the licensee;

(f) Consent to recall of all associated HDCP batches when subsequent testing of HDCPs in commerce indicates a failure of testing requirements under this chapter, or a foodborne outbreak or other illness is causally linked by federal authorities or the Department of Health to particular HDCP batches;

(g) Maintain the licensed establishment in a decent, orderly, and respectable manner and in full compliance with federal statutes, Tennessee laws, Commission rules and regulations, and local ordinances in the municipality and county where licensed premises are located. Licensees remain responsible for complying with this rule if the licensed owner or operator rents, leases, or otherwise permits another to occupy the licensed premises; and, (h) Permit the Commission full access to the premises, open or disclose records upon request, and furnish information that is not false or misleading to an agent or representative of the Commission.

(2) In addition to other requirements of the Act and this chapter, persons subject to this chapter must not:

(a) Manufacture or distribute HDCPs without first securing a license from the Commission;

(b) Manufacture or distribute HDCPs that do not meet manufacturing and testing requirements under this chapter;

(c) Transport or allow transport of HDCPs without a COA issued by a third-party laboratory registered with the Commission;

(d) Interfere with an authorized representative of the Commission in performance of their duties;

(e) Violate any federal or state quarantine of plants, regulated articles, or other material;

(f) Sell, offer for sale, move, or allow movement of any apparently infested material; or, (g) Violate any Commission order issued under the Act or this chapter, including but not limited to orders for embargo or destruction of HDCPs.

(3) Violation of any workplace safety or environmental protection standard enforced by state or federal authorities is grounds for denial of program inspection and denial or revocation of any license issued by the Commission.

(4) A person is responsible for violations of the Act or this chapter when committed by either the person, their agent, or their employee.

(5) Each violation of the Act or this chapter is grounds for issuance of embargo or destruction orders for any HDCP held by the violator or their agent, denial or revocation of any license or registration issued by the Commission actions for injunction, imposition of civil penalties, and pursuit of criminal charges against the violator.

History

Authority: T.C.A. §§ 57-7-103, 57-7-106, and 57-7-116.
Administrative History: Emergency rules filed December 26, 2025; effective through June 24, 2026. New rules filed March 11, 2026; effective June 9, 2026.

Chapter 0100-16 Rules for Retail Sale of Hemp-Derived Cannabinoid Products

Tenn. Comp. R. & Regs. 0100-16-.01 SCOPE

(1) This chapter applies to any person who sells or offers to sell at retail any hemp-derived cannabinoid product (“HDCP”).

(2) Persons that sell or offer to sell HDCPs are subject to all requirements and regulatory authority applicable to the type of product sold, including but not limited to regulation under the Act and this chapter, T.C.A. Title 57, Chapter 7, and Title 39, and Chapter 17, Part 15. HDCPs are excluded from all regulatory exemptions including but not limited to those afforded under the Food Freedom Act at T.C.A. § 53-1-118.

(3) The Commission will not refund fees for early termination of any license issued under this

chapter.

(4) Licenses under this chapter are not transferable from person to person or location to location.

History

Authority: T.C.A. §§ 57-7-101, et seq., and Public Chapter 526, enacted 2025.
Administrative History: Emergency rules filed December 26, 2025; effective through June 24, 2026. New rules filed March 11, 2026; effective June 9, 2026.

Tenn. Comp. R. & Regs. 0100-16-.02 DEFINITIONS

(1) Terms in this chapter share those meanings of terms in T.C.A. Title 57, Chapter 7.

(2) When used in this chapter, unless the context requires otherwise:

(a) “Act” means Public Chapter 526, enacted 2025.

(b) “Batch,” in addition to its definition under the Act, means an individual production lot of manufactured product.

(c) “Business for which entry is limited to individuals twenty-one (21) years of age or older” means a legal establishment that affirmatively restricts access to its buildings or facilities at all times to persons that are twenty-one (21) years of age or older by requiring each person, who attempts to gain entry to those buildings or facilities, to submit for inspection a valid government issued photo identification, which demonstrates by proof of age that the person is at least twenty-one (21) years of age.

(d) “Cannabis” means any plant or any part of a plant of the genera Cannabis and includes hemp.

(e) “Certificate of Analysis” (“COA”) means a written document from a laboratory approved by the Commission for testing samples under this chapter, and which communicates the results of those tests performed.

(f) “Commerce” or similar words mean involving payment for an item or payment for services incident to production of the item.

(g) “Commission” means the Tennessee Alcoholic Beverage Commission.

(h) “Counter” is a physical barrier that necessitates the seller’s assistance to access product prior to its sale.

(i) “Food” means articles used for food or drink for humans or other animals; chewing gum; and articles used for components of food or drink or chewing gum.

(j) Hemp-Derived Cannabinoid Product (“HDCP”) means a product that contains or is labeled to reflect it contains a hemp-derived cannabinoid that is produced, marketed, or otherwise intended to be consumed orally (“ingestible”), inhaled (“inhalable”), or absorbed through the skin (“transdermal”). HDCPs also include intermediate products intended for subsequent use as a component in a later finished ingestible, inhalable, or transdermal HDC product.

(k) “In a manner similarly reliable to post-decarboxylation” means a manner sufficient to quantify by percentage the resulting THC of a sample if carboxyl groups are removed from all molecules containing THC within the sample. A manner similarly reliable to postdecarboxylation is shown by a post-decarboxylation THC value equal to the sum of the sample’s THC percentage plus the product of its delta-9 tetrahydrocannabinolic acid (THCa) percentage and 0.877.

(l) “Manufacture,” in addition to its definition under the Act, includes actions that physically or chemically transform cannabis beyond its principal form as a farm product or filters, cleans, or trims that product to isolate any of its particular parts or components.

(m) “Move,” “transport,” or similar words mean to relocate in any manner an item from one location to another.

(n) “Person” means an individual, partnership, corporation, or any other form of legal entity.

(o) “Proof of age” means a valid driver’s license or other unexpired government issued identification that describes the individual, indicates his or her age, contains a photograph or other likeness of the individual, and appears on its face to be valid.

(p) “Sample” means to take material or the material taken from a location where HDCPs are sold or offered for sale at retail.

History

Authority: T.C.A. §§ 57-7-102, 57-7-104(b)(2), 57-7-109, and 57-7-116.
Administrative History: Emergency rules filed December 26, 2025; effective through June 24, 2026. New rules filed March 11, 2026; effective June 9, 2026.

Tenn. Comp. R. & Regs. 0100-16-.03 LICENSE APPLICATIONS AND FEES

(1) Transitional Denial Authority for Prior Title 43 Violations (a) For a period of two (2) years from the date of a violation, the Commission may deny a license application submitted by any person or entity that was previously licensed under Tennessee Code Annotated, Title 43 by the Department of Agriculture, if the applicant has committed a violation of Title 43 relating to the cultivation, manufacture, distribution, or retail sale of hemp or hemp-derived cannabinoid products.

(b) For purposes of this section, a “violation” means either:

A finding of violation contained in a final order issued by the Department of Agriculture or another state agency under Title 43; or 2. Conduct for which no adjudication has occurred, but which the Commission, after providing written notice of intent to deny and an opportunity for an evidentiary hearing, determines by a preponderance of the evidence to have constituted a violation of Title 43 or rules promulgated thereunder.

The nature and seriousness of the violation;
The applicant’s history of compliance with state law;
Any corrective actions taken by the applicant; and 4. The time elapsed since the violation occurred.

(d) Nothing in this section precludes an applicant from submitting a license application during the two-year period following a violation; however, the Commission may rely on such violation(s) as a basis for denial within that period.

(e) This section applies during the transitional period following the transfer of regulatory

authority HDCPs from the Department of Agriculture to the Commission and remains in effect unless and until superseded by permanent Commission rules governing applicant eligibility.

(2) An HDCP retail license is required per person per location for any person that sells or offers for sale an HDCP at retail. Licensed locations must be fixed address facilities, but may include temporary locations such as fairs, flea markets, and farmers markets, provided that license fees for temporary locations cannot be prorated on the basis of temporary use.

(3) HDCP retail license applications must be submitted in a manner specified by the Commission.

In addition to submitting to a physical inspection of the address seeking licensure, applicants must provide the Commission with the following:

(a) Legal name and D/B/A for the business seeking licensure;

(b) Physical and mailing address for the business seeking licensure;

(d) Valid government issued photo identification for any person in a business seeking licensure;

(f) Proof of registration in its state of incorporation for any applicant that is a formalized business entity;

(g) Sufficient information to establish that applicant is registered with the Tennessee Department of Revenue to pay applicable taxes;

(h) Identification of nearest school serving any grades K–12 and the distance from that school to the location to be licensed, in feet measured as a straight line along the shortest route;

(i) Architectural diagram of the physical space, which includes square footage and dimensions;

(j) Certificate of Occupancy permitting commercial activity;

(k) Verification that the applicant has a legal right to the premises seeking licensure;

(l) Business hours of applicant;

(m) Compliance with the Eligibility Verification for Entitlements Act as codified in T.C.A. §§ 4-58-101, et seq; and (n) Any other information, required by the Commission to determine an applicant’s eligibility for the licensure sought.

(4) Licensees must notify the Commission in a manner approved by the Commission, of any changes to the contents of their approved application within thirty (30) days of the change, including any change in contact information.

(5) Payment of an annual HDCP retail license fee is due upon approval of an application and must be paid in full prior to a license being issued. The license fee may be prorated in the initial year of licensure or following the business obtaining additional licenses, provided the total prorated fee does not exceed the annual license fee.

(6) HDCP retail licenses expire one (1) year from the date of issuance, unless the HDCP retail licensee holds more than one (1) TABC issued retail license and the Commission prorated the license fee to permit the businesses to align license expiration dates.

(7) It is the responsibility of HDCP retail licensees to submit to an annual inspection, provide a complete renewal application in a manner specified by the Commission, provide an updated criminal background check for each applicable individual at the time of application, and remit payment of the annual license fee prior to the expiration of the license. The expiration date printed on the permit serves as notice of the need to seek the renewal of the permit by the expiration date, and no additional notice is required. HDCP retail licenses will be closed on the business day after expiration if both an application and a license fee have not been received.

If the Commission receives an application and license fee prior to the expiration date, closing of the permit will be tolled and the permit will remain valid until the Commission reviews the application. The applicant shall resolve any outstanding issues and submit any additional documentation to the Commission no later than 30 days after the expiration date. Licenses that the Commission does not renew, will be closed 45 days after the license expiration date. The renewal process is complete when the Commission issues an updated license.

(8) The Commission may deny any application for licensure that it deems incomplete because it lacks required documents or information or that is not completed in conformance with this

section.

History

Authority: T.C.A. §§ 57-7-106 and 57-7-116.
Administrative History: Emergency rules filed December 26, 2025; effective through June 24, 2026. New rules filed March 11, 2026; effective June 9, 2026.

Tenn. Comp. R. & Regs. 0100-16-.04 MANNER OF SALE

(1) HDCP retail licensees must not sell any HDCP to a purchaser unless the purchaser has provided proof of age showing the purchaser is, at least, twenty-one (21) years of age.

(2) HDCP retail licensees may not offer HDCPs for sale through use of vending machines or unstaffed kiosks or self-checkout.

(3) HDCP retail licensees may offer HDCPs for sale only if the product is maintained behind the counter, except as authorized in T.C.A. § 57-7-104(d), in a location or manner that requires physical assistance from the licensee for the customer to access the product.

(4) HDCP retail licensees must post, in a conspicuous location, a warning sign that informs customers that HDCPs may be intoxicating and cause impairment. The letters comprising the word “WARNING” shall be highlighted black lettering, and “WARNING” should 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 (9½′′).

(5) HDCP retailers are prohibited from purchasing HDCPs from any person that is not an HDCP licensed wholesaler.

History

Authority: T.C.A. §§ 39-17-1507(a), 39-17-1509, 57-7-103, 57-7-104, 57-7-106, and 57-7-116.
Administrative History: Emergency rules filed December 26, 2025; effective through June 24, 2026. New rules filed March 11, 2026; effective June 9, 2026.

Tenn. Comp. R. & Regs. 0100-16-.05 RECORDS

(1) For each HDCP offered for sale, HDCP retail licensees shall maintain for two (2) years and readily produce upon request:

(a) COAs received from their immediate upstream seller of the product; and, (b) Invoices and bills of lading for the licensee’s purchase or receipt of the product.

(2) For any HDCP rendered unusable or disposed pursuant to this chapter, HDC retail licensees must maintain documentation of the following for two (2) years following disposal:

(a) Date(s) and manner(s) in which the product was rendered unusable or disposed;

(b) Batch number; and, (c) Total volume of product that was disposed

History

Authority: T.C.A. § 57-7-101, 57-7-105, 57-7-106, and 57-7-116.
Administrative History: Emergency rules filed December 26, 2025; effective through June 24, 2026. New rules filed March 11, 2026; effective June 9, 2026.

Tenn. Comp. R. & Regs. 0100-16-.06 INSPECTIONS AND TESTING

(1) Scope. The Commission may enter any part of the licensed premises to inspect and sample any cannabis, HDCP, or other material, to examine and copy records, and to conduct random checks for manner of sale of HDCPs, as necessary to determine compliance with the Act and this chapter.

(2) Frequency. The Commission may conduct inspections as often as necessary to determine compliance with the Act and this chapter.

(3) Product testing:

(a) Upon purchase of HDCPs offered for retail sale, the Commission may sample and test or cause to be sampled and tested the product for compliance with the Act and the applicable Commission rules. Any test result exceeding allowable limits is grounds for embargo, recall, and remediation pursuant to provisions applicable under Tenn. Comp.

R. & Regs. 0100-15-.06, and destruction of the batch of HDCP represented by the sample.

(b) A sample collected and tested according to Commission protocols is deemed representative of the HDCP batch from which the sample was obtained.

History

Authority: T.C.A. §§ 39-17-1509, 57-7-106, 57-7-107, 57-7-116, and 57-7-117.
Administrative History: Emergency rules filed December 26, 2025; effective through June 24, 2026. New rules filed March 11, 2026; effective June 9, 2026.

Tenn. Comp. R. & Regs. 0100-16-.07 VIOLATIONS

(1) In addition to other requirements of the Act and this chapter, persons subject to this chapter must:

(a) Maintain areas where HDCPs are sold, offered for sale, or held for inventory so as to be readily accessible for inspection;

(b) Provide adequate lighting necessary for inspection of all HDCPs offered or held for retail sale;

(c) Provide full access to facilities, inventory, records, and invoices necessary for Commission inspection without a warrant;

(d) Give full information as to the source of any cannabis or HDCP currently or previously held in their possession during the previous two (2) years;

(e) Consent to sampling of all HDCPs offered or held for retail sale by the licensee; and (f) Consent to recall of all associated HDCP batches when testing of the product indicates a failure under Tenn. Comp. R. & Regs. 0100-15-.06 or a foodborne outbreak or other illness is causally linked by federal authorities or the Department of Health to particular HDCP batches.

(h) Permit the Commission full access to the premises, open or disclose records upon request, and furnish information that is not false or misleading information to an agent or representative of the Commission.

(i) Refrain from advertising products that are otherwise unlawful for sale under Tennessee law.

(2) In addition to other requirements of the Act and this chapter, persons subject to this chapter must not:

(a) Sell or offer for sale HDCPs at retail without first securing a license from the Commission;

(b) Sell or offer for sale HDCPs at retail, including raw products, unless they meet manufacturing, labeling, and testing requirements under Tenn. Comp. R. & Regs. 0100- 15-.06 and 0100-15-.07.

(c) Interfere with an authorized representative of the Commission in performance of their duties (d) Violate any federal or state quarantine of plants, regulated articles, or other material; or, (e) Violate any Commission order issued under the Act or this chapter, including but not limited to orders to hold or dispose of HDCPs.

(4) A person is responsible for violations of the Act or this chapter when committed by either the person, their agent, or their employee.

(5) Each violation of the Act or this chapter is grounds for issuance of hold or destruction orders for any HDCP held by the violator or their agent, denial or revocation of any license or registration issued by the Commission, actions for injunction, imposition of civil penalties, and pursuit of criminal charges against the violator.

History

Authority: T.C.A. §§ 57-7-105, 57-7-106, 57-7-107, 57-7-116, and 57-7-117.
Administrative History: Emergency rules filed December 26, 2025; effective through June 24, 2026. New rules filed March 11, 2026; effective June 9, 2026.