On September 22, 2017, the Tennessee Alcoholic Beverage Commission voted to pass recently promulgated rules and amend some rules that have been in place for a number of years.  The majority of the rules pertain to manufacturers; however, there are a few that pertain to liquor-by-the-drink establishments and retail package stores.

Below are some highlights on the liquor-by-the-drink and retail package store rule changes:

  • Someone who owns a liquor-by-the-drink establishment can now have an interest in a manufacturer or wholesaler under the following circumstances –
    • The interest in the manufacturer or wholesaler is less than 5%
    • The conflicting interest is put into an irrevocable trust
    • The interest is held by a spouse or a child over the age of twenty-one as a separate and distinct entity and none of the funds are commingled.
  • A permit or license which is surrendered can be treated as revoked under certain circumstances. This would generally be an agreement that a licensee/permittee would enter into with the Commission to avoid a revocation hearing.
  • A retail package store or retail food store can send a communication directly to a consumer, as long as the consumer has not specifically requested not to be contacted.
  • The newspaper notice requirement for retail package store applicants has been deleted. This is a huge help to applicants, as anyone who has ever done it knows, these ads can be very expensive depending on the area the store is to be located.

We will follow up next week with a summary of the new rules for manufacturers.

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