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2021 Tennessee Code
Title 57 - Intoxicating Liquors
Chapter 4 - Consumption of Alcoholic Beverages on Premises
Part 2 - Administration, Enforcement, Prohibited Acts
§ 57-4-201. Alcoholic Beverage Commission to Administer Law — Permits — Procedure — Rules and Regulations

Universal Citation: TN Code § 57-4-201 (2021)
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    1. The commission created pursuant to chapter 1 of this title, has the authority to administer parts 1-3 of this chapter.

    2. The commission shall make regulations, not inconsistent with this chapter, for clarifying, interpreting, carrying out and enforcing the terms of this chapter, for ensuring the proper and orderly conduct of business by licensees, and for regulating all advertising of alcoholic beverages by licensees.

    3. Expiration of the licenses granted pursuant to this chapter shall be as provided by § 57-3-213(a), (b) and (c).

    4. Further, all the provisions of §§ 57-3-214 and 57-3-404(a) and (b), shall apply to licensees under this chapter.


    1. Any person, firm or corporation owning any hotel, convention center, premier type tourist resort, restaurant, club, historic performing arts center, community theater, theater, historic interpretive center, urban park center, zoological institution, public aquarium, museum, historic mansion house site or commercial passenger boat company as defined in § 57-4-102, desiring to sell wine or other alcoholic beverages for consumption on its premises where food may be served, shall make application to the commission in duplicate on forms furnished by the commission for a permit so to do. The commission is authorized to issue a limited permit to a restaurant making application under § 57-4-101(c)(1), authorizing such restaurant to serve wine but not any other alcoholic beverages. Notwithstanding § 57-3-803, the commission is authorized to issue a limited license to a retail food store authorizing a restaurant within a retail food store to serve wine but no other alcoholic beverages within a designated area within the retail food store. A retail food store may receive a restaurant license under this section without complying with seating requirements or requirements regarding minimum food sales for a wine only licensee as long as the retail food store provides prepared food for sale to customers and pays a license fee equal to the license fee in § 57-4-301(b)(1)(R)(vii). Any person, firm or corporation desiring to sell wine or other alcoholic beverages for consumption on the premises of any terminal building of a commercial air carrier airport as defined in § 57-4-102, or of a commercial airline travel club as defined in § 57-4-102, or of a sports authority facility as defined in § 57-4-102, shall make application to the commission in duplicate on forms furnished by the commission for a permit to do so. No person, firm or corporation shall be authorized to engage in making such sales until the permit therefor is approved and issued by the commission.

    2. No license may be granted hereunder to any establishment when any person, firm or corporation having at least a five percent (5%) ownership interest in the establishment has been convicted within ten (10) years prior to the application for a license hereunder of a violation of the laws governing the sale or manufacture of alcoholic beverages or of any felony.


      1. If a license has been issued to an establishment as a restaurant pursuant to § 57-4-102 and such licensee desires to exchange its license as a restaurant for a license as a limited service restaurant, the commission may issue the establishment a license as a limited service restaurant in accordance with Chapter 1133 of the Public Acts of 2010, upon the filing of an application by the licensee for the issuance of a license as a limited service restaurant, together with the payment of the application fee required pursuant to § 57-4-301(b)(1) and a sworn statement indicating the gross revenue from the previous year derived from food sales and the gross revenue derived from liquor sales, and, if approved, paying the license fee, or the prorated difference between its restaurant license fee and the license fee, if applicable, required pursuant to § 57-4-301(b)(1)(W). Such statement shall determine the appropriate license fee to be paid. It is the intent that on-premises licenses permitting the sale of alcoholic beverages at restaurants shall not be required to fulfill any other requirements in order to be issued a license to serve alcoholic beverages as a limited service restaurant.

      2. Should the commission find that any restaurant fails to satisfy the requirements of § 57-4-102(30)(A) but would otherwise qualify as a limited service restaurant, such establishment shall be permitted thirty (30) days following such finding to elect to exchange its license for a limited service restaurant license upon paying to the commission a new application fee and the prorated difference between its restaurant license fee and the license fee required pursuant to § 57-4-301(b)(1)(X).

      3. For purposes of exchanging a restaurant license as a limited service restaurant license, if the licensee had been issued a license by the alcoholic beverage commission as a restaurant, the initial license fee shall be based on the percentage of gross sales the establishment generated from the service of meals during the year previous to the year the license as a limited service restaurant is requested.

      4. Any establishment applying for a renewal of its license shall submit a sworn statement indicating the gross revenue from the previous year derived from food sales and the gross revenue derived from liquor sales. Such statement shall determine the license fee to be paid pursuant to § 57-4-301(b)(1)(X).

        1. If a license is requested by an applicant who does not hold an existing license as a restaurant, it shall be a rebuttable presumption that the amount of gross sales from prepared food will be between zero percent (0%) but not more than fifteen percent (15%). An applicant may rebut the presumption by including with the application a business plan which indicates the gross sales from prepared food will be higher than fifteen percent (15%). The commission shall advise each applicant of the applicant's right to include with the application a business plan which includes a projection of the amount of gross sales of prepared food and in such case, the commission shall assess the appropriate license fee based on such projection.

        2. Any establishment applying for a renewal of its license as a limited service restaurant shall submit a sworn statement indicating the percentage of gross revenue for the previous year derived from food sales and the gross revenue derived from sales of alcoholic beverages. If the statement indicates the gross sales from prepared food was higher than the initial projection or higher than the amount actually sold in the previous year, requiring the payment of a lower licensure fee, the commission shall refund the difference to the licensee within thirty (30) days of the date the statement is filed with the commission. If the statement indicates the gross sales from prepared food was less than the projection or than the amount actually sold in the previous year, requiring the payment of a higher licensure fee, the commission shall require the licensee to pay to the commission the difference between the licensure fee actually paid at the time the renewal fee is paid.


    1. Any club seeking to obtain a license under this chapter shall, as a condition precedent to its obtaining such license, cause to be printed in a newspaper of general circulation in the county or municipality where such club is located a public notice that the club is seeking a license from the commission to sell liquor by the drink. The notice shall include the name and address of each officer of such club, the address of the location of the club, an indication of the number of regular dues paying members, and the name and address of the individual to be in actual charge of the sale of alcoholic beverages. The commission is authorized to promulgate rules and regulations further establishing the content and format of such notice.

    2. Any club seeking to obtain a license under this chapter shall submit with its application a certificate signed by the county mayor or chair of the county commission in which the club is located if outside the corporate limits of a municipality or, if within a municipality, from the mayor or a majority of the commission, city council or legislative body of the municipality by whatsoever name designated, or if the municipality has no mayor, from the highest executive of the municipality. The certificate must state that the persons to be in actual charge of the sale of alcoholic beverages are of good moral character and are personally known to the official or officials signing the certificate, or that such official or officials have made careful investigation of the person's or persons' general character, and from such investigation it is found to be good. In the event the club is unable to obtain such certificate from the proper certifying official, the applicant shall file with the commission with the applicant's application a petition in duplicate stating that the applicant has made application to the certifying official for the certificate and same has been wrongfully, illegally or arbitrarily refused, and otherwise setting forth reasons why the applicant is entitled to such license, notwithstanding the refusal aforementioned, and the manner in which the refusal is wrongful, illegal or arbitrary. The commission shall hold a hearing to determine whether the license shall be issued. The hearing shall be conducted pursuant to the Uniform Administrative Procedures Act, compiled in title 4, chapter 5. The commission shall make such order granting or refusing the license as, in its discretion, the entire record at such hearing shall justify, and such order shall be effective from its date.

    3. This subsection (c) shall not be applicable to any club having a license on May 1, 1980, or to the renewal of a license for such club.

  4. The commission shall have authority to require an applicant, under oath, to disclose the following information:

    1. The name of the applicant;

    2. Location of the hotel, convention center, premier type tourist resort, restaurant, club, historic performing arts center, community theater, theater, historic interpretive center, urban park center, zoological institution, public aquarium, museum, historic mansion house site, terminal building of a commercial air carrier airport, commercial airline travel club, commercial passenger boat company, or sports authority facility;

    3. Sufficient data to establish that applicant meets the requirements of §§ 57-3-110, 57-4-101, 57-4-102;

    4. The true owner thereof;

    5. That neither the applicant nor any person to be employed in the serving of beverages authorized herein shall be a person who has been convicted of any violation of the laws against possession, sale, manufacture or transportation of intoxicating liquor or of any felony within eight (8) years prior to the application for a license hereunder;

    6. That the manager and/or operator of the hotel, convention center, premier type tourist resort, restaurant, club, zoological institution, public aquarium, museum, community theater, theater, historic interpretive center, historic performing arts center, establishment in a terminal building of a commercial air carrier airport, commercial airline travel club, commercial passenger boat company, or sports authority facility seeking such permit is of good moral character; and

    7. Such other relevant information as may be required by the commission.

  5. The commission is authorized to promulgate rules and regulations governing its procedure but it shall consider all applications promptly.


    1. Notwithstanding any provision of this title to the contrary, an entity that holds a license to manufacture high alcohol content beer issued by the commission shall be authorized to sell on its premises beer or high alcohol content beer which has been brewed on such premises, for consumption on its premises without the requirement of an additional license under this part. Any sale of high alcohol content beer by such manufacturer or brewery shall be subject to the tax imposed by § 57-4-301(c).

    2. Any manufacturer or brewery electing to effect sales of beer or high alcohol content beer for consumption on its premises must advise the commission as to the designated area where such sales will occur and shall be subject to the conditions of § 57-4-203 for such sales, except such manufacturer or brewery may effect sales for off-premises consumption pursuant to § 57-3-202(h).

  7. Notwithstanding any law or rule to the contrary, upon collection of a fifty-dollar licensing fee, the commission may issue temporary licenses not to exceed thirty (30) days to any new applicant for a license issued pursuant to this chapter.
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