2017 TABC Law Changes

2017 TABC Law Changes

Each year, the General Assembly makes various changes to laws impacting the alcoholic beverage industry. Below, you will find several bullet point summaries of provisions found in this year’s passed legislation. For your convenience, there is a clickable link to each new law.

 

We will continue to update our frequently asked questions page on our website with this information.

 

Please do not hesitate to let us know if you have any questions.

 

Liquor-by-the-drink Establishments

  • The TABC is authorized to issue a fine to LBD licensees for second and subsequent sale to minor violations (Public Chapter 147).
  • Seasonal closings at restaurants are permitted between November 1 and March 1 or other times if the establishment notifies the TABC (Public Chapter 147).
  • The TABC is authorized to issue a fine to LBD licensees for more than two wholesaler delinquencies during a twelve month period (Public Chapter 147).
  • Certain requirements for infusions related to labeling and notification have been deleted. Each batch of infusion product must be labeled with a list of each ingredient contained in the batch (Public Chapter 338).

 

Retail Package Stores

  • The TABC is authorized to issue a fine to a retail package store for each wholesaler delinquency violation (Public Chapter 147).

 

Retail Food Stores (WIGS)

  • Delivery of wine is permitted at a retail food store at  any time when the wholesaler and the store’s manager mutually agree regardless of whether the store is open to the public (Public Chapter 443).
  • Wholesalers are permitted to build and stock displays at a retail food store as long as the display is not part of the retail food store’s regular shelving. Wholesalers are also permitted to replenish the display for up to one month after the display has been installed (Public Chapter 443).
  • A wholesaler may accept a pre-order from a retail food store with a pending application for a retail food store license (Public Chapter 443).

 

Wholesalers

  • Delivery of wine is permitted at a retail food store at any time when the wholesaler and the store’s manager mutually agree regardless of whether the store is open to the public (Public Chapter 443).
  • Wholesalers are permitted to build and stock displays at a retail food store as long as the display is not part of the retail food store’s regular shelving. Wholesalers are also permitted to replenish the display for up to one month after the display has been installed (Public Chapter 443).
  • A wholesaler may accept a pre-order from a retail food store with a pending application for a retail food store license (Public Chapter 443).
  • Beer wholesalers are no longer required to obtain a separate license for the distribution of high alcohol content beer (Public Chapter 443).
  • Wholesaler employees who are not involved in the delivery or sale of alcoholic beverages are no longer required to obtain a wholesaler employee permit (Public Chapter 443).
  • Wholesalers may not provide cumulative discounts to any retail food store, retail package store, or LBD establishment (Public Chapter 443).

 

Wineries

  • Wineries and farm wineries may purchase or import up to 50,000 gallons of finished wine product each year (Public Chapter 269).
  • Wine may be sold for on- or off-premise consumption anywhere on a winery’s premises to the extent permitted by federal law (Public Chapter 269).
  • A nonprofit association organized to encourage and support grape growing and winemaking with ten or more winery members may hold twelve, rather than eight, festivals per year (Public Chapter 373).
  • Server permits are no longer required for individuals serving wine at a wine festival authorized by TCA § 57-3-207(m) (Public Chapter 373).
  • Managers at wineries with retail sales are no longer required to obtain manager permits from the TABC (Public Chapter 373).

 

Distilleries

  • Distilleries may sell product manufactured on the premises of the distillery for on-premise consumption (Public Chapter 295).
  • A distillery’s premises may be defined as all contiguous real property owned or leased by the distillery. Distilleries wanting to expand their licensed premises may do so by filing an application with the TABC (Public Chapter 295).
  • A licensed manufacturer may hold an interest in an LBD establishment in an irrevocable trust with an independent trustee (Public Chapter 371).

 

Special Occasion License

  • Manufacturers, wholesalers, retailers, wineries, nonresident sellers, and on-premise licensees may donate alcohol to special occasion licensees (Public Chapter 147).
  • Employees of an LBD licensee may serve donated alcoholic beverages not owned by the LBD licensee for the limited purpose of a special occasion licensed event that is not held or sponsored by the LBD licensee (Public Chapter 147).
  • A representative of a special occasion license applicant may receive donated alcoholic beverages before the license is issued as long as the alcohol is only served at a licensed special occasion event (Public Chapter 147).
  • Sealed containers of alcohol may be sold for off-premise consumption at a special occasion licensed event (Public Chapter 147).

 

Miscellaneous

  • The TABC is authorized to certify online server training programs (Public Chapter 338).
  • The TABC does not have jurisdiction over products approved by the TTB as non-beverage products (Public Chapter 338).

 

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