Different licenses have different disclosure requirements. Retail food stores are statutorily required to disclose any owner with more than ten percent (10%) ownership. Liquor-by-the-drink establishments must disclose personal information on any individual with an ownership percentage of five percent (5%) or more. The retail package store statutes are silent on any de minimis ownership percentage exception, so all individuals, regardless of ownership percentage, are required to disclose personal and financial information. Manufacturers, similar to retail package stores, are currently required to disclose personal and financial information on any individual that has ownership, regardless of the percentage held.
HB 2612/SB 2496 was filed with the intention to change the onerous disclosure requirements for manufacturers. If passed, this bill would raise the threshold of ownership percentage that would trigger required disclosure of personal and financial information to the Tennessee Alcoholic Beverage Commission (TABC). HB 2612/SB 2496 is more consistent with current TTB requirements, which requires only disclosures for anyone with an ownership percentage of ten percent (10%) or more. HB 2612/SB 2496 would still require that all owners are disclosed by name and percentage of ownership, but the more burdensome and detailed information, which includes two (2) years of tax returns, personal financial statements, and bank statements, would no longer be required by those with less than a ten percent (10%) ownership interest, unless specifically requested by the TABC.
HB 2612/SB 2496 additionally provides that if there are more than twenty (20) owners of the applicant/licensee, only individuals with an interest of more than ten percent (10%) are required to provide information to the TABC. The TABC would only be able to request additional information on individuals with less than ten percent (10%) ownership if there is reason to believe that that owner is not eligible to have an interest in a manufacturer.