Rules & Regulations of the State of Tennessee
Title 0100 - Alcoholic Beverage Commission
Chapter 0100-01 - Rules for the Sale of Liquor by the Drink
Section 0100-01-.03 - CONDUCT OF BUSINESS

Universal Citation: TN Comp Rules and Regs 0100-01-.03

Current through September 24, 2024

(1) Business Management Restricted.

(a) Every licensed business must be managed by the holder of the license or a designated manager. The Alcoholic Beverage Commission must be notified in a manner approved by the Commission of any change in management within seven (7) days of the change.

(b) Each on-premises manager, assistant manager, and/or any individual working in such capacity, with duties that directly or indirectly impact the selling and dispensing of alcoholic beverages, must have a valid server permit subject to the provisions of T.C.A. § 57-3-707.

(2) Consumption on Licensed Premises. Except as provided for in 0100-01-.08 below, no licensee shall permit alcoholic or malt beverages to be consumed and/or sold on the licensed premises between the hours of 3:00 a.m. and 8:00 a.m. on Monday through Saturday or between the hours of 3:00 a.m. and 10:00 a.m. on Sunday unless the local jurisdiction has opted out of the expanded hours. If such is the case, then the consumption and/or sale of alcoholic beverages may begin at 12:00 p.m. on Sunday.

(3) Free Access to Licensed Premises Without Warrant. Licensees must provide Tennessee Alcoholic Beverage Commission agents immediate access, without a warrant, to all parts of a licensed premise at all times.

(4) Refusal of Cooperation. Any licensee, licensee's agent, or licensee's employee subjects the licensee to suspension or revocation of the liquor-by-the-drink license if they refuse to open or disclose records, refuse to furnish information, or furnish false and/or misleading information to an agent or representative of the Tennessee Alcoholic Beverage Commission.

(5) Licensees Not to Combine. No combination of licensees shall be permitted to purchase merchandise in the name of the licensee and subsequently distribute merchandise which they have purchased in combination with each other to any one of the combination, and no licensee shall be permitted to transfer goods from one to another. If any member of the combination is apprehended violating this regulation, every member shall likewise be guilty of a violation, and it shall also be a violation for the wholesale distributor to furnish merchandise to any combination of licensed dealers.

(6) Licensee Responsible for Law and Order on Licensed Premises. Each licensee will maintain the licensed establishment in a decent, orderly, and respectable manner and in full compliance with federal statutes, Tennessee laws, Commission rules and regulations, and local ordinances and laws in the municipality and/or county where licensed premises are located. Licensees remain responsible for complying with this rule if the licensed owner or operator rents, leases, or otherwise permits another to occupy the licensed premises.

(7) Sanitary and Fire Standards. All licensed premises shall be kept in clean and proper sanitary condition, and in full compliance with the provisions and regulations of all duly authorized health authorities whether state, county, or city.

(8) On-Premises Sale by Bottle Restricted. On-premises licensees are restricted from selling or giving away distilled spirits by the bottle or package. Licensees have the right to sell wine, champagne, or malt beverages by the bottle or container for on-premises consumption. The bottle or container must be opened prior to being served to the consumer, except as specifically provided in T.C.A. § 57-4-203.

(9) On-Premises Employees' Activities Restricted ("B-Girl" Activity). It is unlawful for any employee or agent of an on-premises licensee to solicit alcoholic beverages for public consumption by the employee or agent. It is further unlawful to dispense or consume any beverage under the pretense that it is an alcoholic beverage for public consumption. Nothing in this section precludes an industry member, its employees, or representatives from promoting products as permitted under Rule 0100-03-.11.

(10) Restriction as to Age of Dispensing Employees. No person under the age of eighteen (18) years shall be permitted to dispense, serve, or sell alcoholic or malt beverages in any establishment licensed under the provisions of T.C.A. §§ 57-4-101, et seq.

(11) Dual Interests Prohibited. Except as provided in Rule 0100-03-.16:

(a) No licensee holding a license issued pursuant to T.C.A. §§ 57-4-101, et seq. and no person owning an interest, financial or otherwise, in a partnership or corporation holding such a license, shall have any interest, directly or indirectly, in any business licensed under the provisions of T.C.A. §§ 57-3-202 or 57-3-203.

(b) No person having any interest, financial or otherwise, directly or indirectly, in any business licensed under the provisions of T.C.A. §§ 57-3-202 or 57-3-203 shall have any interest in any business licensed under T.C.A. §§ 57-4-101, et seq.

(12) Restrictions on License After Surrender or Revocation.

(a) No license will be issued to the spouse, child or children, son-in-law or daughter-in-law, employee, or other person having any interest in the business of a licensee whose license has been revoked, for the privilege of doing business at the same location or in close proximity to the location of the establishment whose license was revoked.

(b) The Commission may refuse to reissue a license to the same person, firm, or corporation whose license has been revoked for one (1) year from the date of said revocation.

(c) The Commission may treat a surrender of a license as a revocation under the restrictions contained in this paragraph.

(13) Licensee Must Surrender License If Business Discontinued. Whenever any licensee discontinues business for any reason, he shall immediately notify the Commission in writing and surrender his license.

(14) Prohibited Practices. No licensee, employee, or agent of a licensee shall give away any sealed package, or any drink, of wine or alcoholic beverages except as permitted by T.C.A. § 57-3-404 and Rules 0100-03-.11 and 0100-06-.03. "Give" for the purpose of this paragraph, shall include:

(a) Offering or delivering any free alcoholic beverage or wine to any person or group of persons;

(b) Offering or delivering unlimited drinks of wine or alcoholic beverages for a fixed price if the actual cost of all ingredients, including the alcohol and all applicable taxes, of the drinks actually served to a customer exceeds the fixed price charged; or

(c) Awarding any wine or alcoholic beverages as a prize or free drink or encouraging or conducting any game or contest which involves drinking or uses wine or alcohol as a prize or free drink.

(15) Happy Hour Restrictions. No licensee, employee, or agent of a licensee shall engage in any of the following promotional practices during the period beginning at 10:00 p.m., prevailing time, until the time set by law for closing of such licensed establishments:

(a) Serve two (2) or more drinks or containers of alcoholic beverages to a consumer at one time.

(b) Increase the volume of alcohol contained in any such drink during any calendar week without increasing proportionately the price regularly charged for such drink.

(16) Business Name Change. At least seven (7) calendar days prior to any change in its business name or "d/b/a" name, a licensee must submit the proposed change in writing to the Commission for approval. Upon approval, the Commission will amend the license to reflect the licensee's new business or "d/b/a" name.

(17) Display of License. Any person, partnership, corporation, or other legal entity holding an on-premise consumption liquor-by-the-drink license issued under Chapter 4 of Title 57 of Tennessee Code Annotated, shall prominently display and post, and keep displayed and posted, in the most conspicuous place in the licensed premises, the license so issued.

(18) Server Permits. On-premises consumption licensees should maintain and have documentation of the hire date for employees that serve or handle alcohol, on-site and available for review. Acceptable documentation includes a dated application for employment or a dated W-4 form. If the licensee does not have acceptable documentation of the date of hire for the employee, then it will be deemed that the employee has worked at the licensed premises longer than sixty-one (61) days.

(19) Seating. All on-premise consumption licensees licensed as a restaurant shall maintain a minimum seating for forty (40) people at tables and all on-premise consumption licensees licensed as a hotel shall maintain a minimum seating for seventy-five (75) people at tables during business hours with the exception of wine-only restaurants as defined at T.C.A. § 57-4-101(c), or any other statutory exception. Seasonal seating (i.e. outside patio seating) shall count toward total numbers, but not toward the minimum seating requirements at tables. Seats at bars will be counted toward the minimum number of seats at tables if the bar is at least twenty (20) inches in depth and meals may be served and are regularly served at the bar. Those bars containing less than twenty (20) inches in depth will be looked at on a case by case basis with such factors as the type of menu served, placement of the bar, and whether food is regularly served at that bar.

(20) Minors in Possession of Alcohol. On-premises consumption licensees must ensure that minors do not possess or consume any alcoholic beverage-including malt beverages or beer-on the licensed premises.

(21) Employer Responsible for Employee's Action.

(a) Licensees are at all times responsible for the conduct of their businesses and are at all times directly responsible for any act or conduct of any employee which is in violation of the state statues, the rules and regulations of the Commission, and/or any local ordinance or federal statute whether the licensee be present at any such time or not. This section is defined to mean that any unlawful, unauthorized, or prohibited act on the part of a licensee's agent or employee shall be construed as the act of the employer, and disciplinary actions will proceed as though he were present and had an active part in such unlawful, unauthorized, or prohibited act, and as if having been at the employer's direction and with his knowledge.

(b) In any disciplinary proceeding, it shall be no defense that an employee or agent of a licensee acted contrary to order, or that a licensee did not personally participate in the violating action or actions. However, disciplinary actions related to sales of alcoholic beverages to minors, intra-industry violations, and trade violations are subject to the provisions of Rule 0100-05-.07, the Responsible Licensee Program.

(22) Application Process for On-Premises Consumption Licenses.

(a) Applications must be submitted in a manner specified by the Commission. The following documents must be submitted in support of an application for license to sell alcoholic beverages for consumption on premises:
1. Completed application;

2. Questionnaire for anyone having at least five percent (5%) ownership in the business, for any officers of a corporate applicant, and for any manager, assistant manager, and/or any individual working in such capacity and having duties which directly or indirectly impacts on the selling and dispensing of alcoholic beverages;

3. Lease agreements, assignments, subleases, and/or deed to property;

4. Current Certificate of Occupancy;

5. Inspection by the Tennessee Alcoholic Beverage Commission;

6. Acknowledgment of the rules and regulations;

7. Menu;

8. Price Schedule of Drinks;

9. List of Officers/Owners/Members/Partners;

10. Sales & Use Tax Certificate of Registration or equivalent verification issued by the Tennessee Department of Revenue;

11. Sufficient bond posted with the Department of Revenue;

12. Application fee;

13. Business hours;

14. Current manager(s);

15. Department of Health issued health inspection or an equivalent document, unless otherwise prohibited by statute; and

16. Any other information that the Tennessee Alcoholic Beverage Commission may request.

(b) In addition, any of the following documents which exist must also be submitted:
1. Management agreements;

2. Bill of sale.

Authority: T.C.A. §§ 57-1-207; 57-1-209; 57-3-104; 57-3-406; 57-3-704; 57-3-710; 57-4-101; 57-4-102; 57-4-104; 57-4-201; and 57-4-203.

Disclaimer: These regulations may not be the most recent version. Tennessee may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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