2010 Tennessee Code
Title 57 - Intoxicating Liquors
Chapter 3 - Local OptionTraffic in Intoxicating Liquors
Part 2 - Licenses and Fees
57-3-204 - Retailer's licenses Fees Permits for employees Permit renewal Disposition of alcoholic beverages after nonlicensed persons secure title Sign required Penalty for failure to comply.
57-3-204. Retailer's licenses Fees Permits for employees Permit renewal Disposition of alcoholic beverages after nonlicensed persons secure title Sign required Penalty for failure to comply.
(a) For the retail sale of alcoholic spirituous beverages, as in this chapter defined, a license may be issued as herein provided. Any person, firm, or corporation desiring to sell alcoholic spirituous beverages to patrons or customers, in sealed packages only, and not for consumption on the premises, shall make application to the commission for a retailer's license, which application shall be in writing and verified, on forms herein authorized to be prescribed and furnished; and the commission may, subject to the restrictions of this chapter, issue such retailer's license. If the premises with respect to which the license is sought is owned by a person, firm or corporation not the applicant, the application shall include the name and address of the owner. If the ownership of the premises should change after a license is granted, the licensee shall, within ten (10) days after becoming aware of such change in ownership, notify the commission in writing of the name and address of the new owner.
(b) (1) Each applicant for a retail license shall pay to the commission a one-time, non-refundable fee in the amount of three hundred dollars ($300) when the application is submitted for review. A retailer's license under this section shall not be issued until the applicant shall have paid to the commission the annual license fee of eight hundred fifty dollars ($850).
(2) A retail license under this section may be issued to individuals who are residents of the state of Tennessee and either have been bona fide residents of the state for at least two (2) years next preceding or who have at any time been residents of the state of Tennessee for at least ten (10) consecutive years.
(3) The commission may, in its discretion, issue such a retail license to a corporation; provided, that no such license shall be issued to any corporation unless such corporation meets the following requirements:
(A) All of its capital stock must be owned by individuals who are residents of the state of Tennessee and either have been residents of the state for at least two (2) years next preceding or who have at any time been residents of the state of Tennessee for at least ten (10) consecutive years;
(B) No person owning stock in such corporation shall have any interest as partner or otherwise, either direct or indirect, in a business licensed to engage in the sale or distribution of intoxicating liquors in Tennessee; and
(C) No stock of any corporation licensed under this section shall be transferred to any person who is not a resident of the state of Tennessee and either has not been a resident of the state for at least two (2) years next preceding or who at any time has not been a resident of Tennessee for at least ten (10) consecutive years.
(4) A retailer's license under this section shall not be issued if the commission determines that any payments made or proposed to be made to any landlord, consultant, independent contractor, employee or agent is not reasonable or is paid in such a manner and amount so as to indicate a division of profits to such person. In aid of its responsibilities under this section, the commission is authorized to require any applicant to certify the reasonableness of payments it makes to any such landlord, consultant, independent contractor, employee or agent, and may require the disclosure of all payments made during a previous year or years to such persons by any licensee seeking renewal of a license. The restriction in this subdivision (b)(4) does not apply to any lease entered into prior to January 1, 1990.
(c) Every retail licensee shall, before employing any person to dispense alcoholic beverages, secure from the commission an employee's permit authorizing such person to serve as an employee in the place of business of the retailer. It is made the duty of the retailer to see that each person dispensing alcoholic beverages in the retailer's place of business has an employee's permit as above required, which permit must be on the person of such employee or upon the premises of the licensee at all times subject to inspection by the commission or its duly authorized agent.
(d) (1) If a retail licensee ceases to do business through the voluntary or involuntary loss of the licensee's license, or if a person not licensed under this chapter obtains title to alcoholic beverages of a retail licensee as a result of a defaulted loan or execution, the wholesaler who sold the alcoholic beverages to the retailer shall purchase such alcoholic beverages from the retailer at a base price of the wholesalers' laid-in cost of such alcoholic beverage. A wholesaler shall be permitted an offset or charge against such payment for any outstanding obligation owed to the wholesaler by such licensee or for reasonable labor, restocking and transportation charges.
(2) Any licensee objecting to the reasonableness of the offset or charge may petition the commission to review such, and shall designate the wholesaler as a respondent. The commission shall conduct a contested case hearing pursuant to the Uniform Administrative Procedure Act, compiled in title 4, chapter 5, part 3, to consider the objection.
(3) The obligation imposed on a wholesaler under this section does not apply to any product which:
(A) Is damaged or cannot be legally sold in this state;
(B) Is not sold to a retailer within one hundred eighty (180) days of demand for repayment;
(C) The wholesaler from whom the product was purchased is not the designated distributor pursuant to § 57-3-301, at the time demand is made;
(D) Product contains a price tag not readily removable; or
(E) Is sold in a commemorative bottle, seasonal decanter or other novelty container.
(e) (1) Each holder of a license to sell at retail alcoholic beverages to patrons or customers, in sealed packages, and not for consumption on the premises, shall display in a prominent place at the location where such sales are permitted a sign, at least six inches (6²) high and fourteen inches (14²) wide stating:
Click to view form.
(2) Failure by such licensee to comply with the provisions of subdivision (e)(1) shall subject such licensee to a fine not to exceed fifty dollars ($50.00).
(f) (1) A manufacturer licensed under § 57-3-202, or under chapter 2 of this title, is authorized to obtain a license under this section for the retail sale of alcoholic beverages or products containing alcohol subject to the further restrictions of this subsection.
(2) A manufacturer seeking to obtain a retail license under this subsection shall apply to the commission on such forms as the commission may prescribe.
(3) A retail license issued under this subsection may be located only on the licensed premises of the manufacturers and may be located on such premises whether or not such premises is located in a jurisdiction which has authorized retail sale of alcoholic beverages pursuant to § 57-3-106.
(4) A manufacturer licensed to sell at retail under this subsection may sell only such products as are manufactured or distilled on the manufacturer's premises located at the retail location, and such products must be sold in special novelty decanters in a seven hundred fifty milliliter (750 ml) size only.
(5) A retail license issued under this subsection may be issued to a manufacturer, regardless of the residency or domicile of the manufacturer, notwithstanding the requirements imposed by subsection (b).
(6) Notwithstanding any other provision of law to the contrary, any manufacturer or distiller holding a retail license pursuant to this subsection may serve without charge the product of the manufacturer or distillery produced on the premises to any person of legal drinking age as complimentary samples for tasting on the grounds or premises of the manufacturer or distillery.
(g) (1) A manufacturer licensed under chapter 2, or this chapter 3, may distribute alcoholic beverages or products containing alcohol only to a wholesaler licensed pursuant to § 57-3-203 where such alcoholic beverages or products are intended for sale at retail in this state; provided, however, that, where such alcoholic beverages are not intended for resale, a manufacturer may make complimentary distributions as allowed by § 57-3-404 and on a periodic basis to its employee or employees in the normal course of employment and to others not licensed under this chapter for routine business or marketing purposes. A wholesaler may permit a manufacturer to deliver a special decanter or commemorative bottle to the retail premises operated by such manufacturer directly; provided, that the wholesaler permitting such direct shipment must include the amounts delivered in its inventory and depletions for purposes of tax collections imposed pursuant to §§ 57-3-302, 57-6-201 and 57-3-501.
(2) No wholesaler may restrict the sale of a special decanter or commemorative bottle to a retail license held by a manufacturer but must make such special decanter or commemorative bottle available to any retailer licensed under § 57-3-204.
(h) (1) The provisions of subsection (f) apply only in those jurisdictions where the voters of such jurisdiction have, by local option election, approved the issuance of such special retail license. Such local option election shall be conducted in the manner prescribed in § 57-3-106; provided, that the question submitted to the voters shall be in the following form:
To permit licensed manufacturers to obtain a license to sell alcoholic beverages at retail in _________ (here insert jurisdiction).
Not to permit licensed manufacturers to obtain a license to sell alcoholic beverages at retail in _________ (here insert jurisdiction).
(2) In any county having within its boundaries a manufacturer, where the voters of municipalities located within such county have approved the sale of alcoholic beverages, pursuant to § 57-3-106, and where the total population of such municipalities exceeds fifty percent (50%) of the population of the county, no such referendum shall be required; provided, that the authorized retail sales by a manufacturer where no referendum is required is not effective until January 1, 1995.
[Acts 1939, ch. 49, § 8; 1945, ch. 167, § 5; 1949, ch. 284, §§ 4, 5; C. Supp. 1950, § 6648.13 (Williams, § 6648.11); impl. am. Acts 1963, ch. 251, § 20; Acts 1972, ch. 656, § 1; 1976, ch. 505, §§ 1, 2; 1977, ch. 461, § 1; T.C.A. (orig. ed.), § 57-117; Acts 1980, ch. 771, § 2; 1981, ch. 156, §§ 1, 2; 1984, ch. 746, § 1; 1988, ch. 836, § 1; 1990, ch. 794, §§ 1, 2; 1993, ch. 368, §§ 1, 2; 1995, ch. 214, § 1; 1995, ch. 396, §§ 4, 5; 1996, ch. 925, § 1; 1997, ch. 543, §§ 1-3; 2004, ch. 876, § 3; 2009, ch. 395, § 3.]
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