Current through September 24, 2024
(1) Public Notice.
Each club, as defined by T.C.A. § 57-4-102, applying for a license to sell
alcoholic beverages for on-premises consumption has a duty to place a notice in
a newspaper of general circulation in the county or municipality where the club
is or will be located indicating the club's intention to apply for a license
with the Tennessee Alcoholic Beverage Commission. The notice is required to
contain the information prescribed in subsection (2) below. A copy of the
published notice is required to be submitted with the club license
application.
(2) Format of Notice.
Each private club applicant shall place the following notice in the newspaper
as described above:
PRIVATE CLUB LIQUOR LICENSE NOTICE
Take notice that
__________________________________________________________
(Name of Club)
intends to seek a license from the Tennessee Alcoholic Beverage
Commission, 500 James Robertson Parkway; 3rd Floor; Nashville, Tennessee 37243,
to sell alcoholic beverages to its members and guests for consumption on the
club's premises at ___________________________________________________. The
officers of
(Address of Club's Premises)
________________________________ are:
___________________________________
(Name of Club)
_______________________________________________________________________
(Name and Address of Officers)
The club currently has approximately __________________________
regular dues paying members.
_______________________________________________________________________
(Name/Address of Person Actually in Charge of Sale of Alcoholic
Beverages)
will be in actual charge of the sale of alcoholic beverages at
the club's premises and has applied to
______________________________________________________________
(City or County)
for a certificate of good moral character.
(3) Change of Manager. Whenever there is a
change in person or persons who are in actual charge of the sale of alcoholic
beverages by a private club licensee, the licensee must submit to the Alcoholic
Beverage Commission a certificate of good moral character for the new person or
persons who will be in actual charge of the sale of alcoholic beverages within
thirty (30) days of the change. Nothing in this rule should be interpreted to
relieve a private club licensee from the obligation to inform the Commission of
a change in management as set out in Rule
0100-01-.03(1).
(4) Application Process for New Private Club
Licenses.
(a) A complete application includes
the contact name and information for club officers that will control the sale
of alcohol and must be submitted in a manner specified by the Commission. In
addition, the following documents must be submitted in support of an
on-premises consumption license application by a private club:
1. Charter, constitution, and any amendments,
if the club is incorporated;
2. A
valid lease, lease assignment, or sublease, and/or deed, or other instrument
indicating the club's ownership and/or right of possession of the physical
premises;
3. A certificate of good
moral character, issued by the city or county, for the person(s) in charge of
the sale of alcoholic beverages;
4.
Verification that the applicant has complied with 0100-01-.05(2) and
0100-01-.05(3);
5. Menu;
6. Price schedule as set forth by the
Department of Revenue;
7.
Verification that all alcohol handling employees have TABC issued server
permits;
8. Department of Health
issued health inspection, or an equivalent government issued document from an
appropriate inspector; and
9.
Business hours.
(b) In
addition, any of the following documents which exist must be submitted:
1. Bylaws;
2. Minutes of membership or board
meetings;
3. Management
contract;
4. Loan or financing
agreements;
5. Past tax returns (2
years);
6. Resolutions relative to
changes in name, purpose, or location of club;
7. Financial statements;
8. Written approval of use and occupancy by
appropriate local authorities, where applicable.
(c) Applicants should submit any other
documents which indicate the club's compliance with licensing requirements.
Such documentation may include items such as announcements of past activities,
newsletters sent to members, ledgers reflecting payment of dues in past years
and disbursement of funds, IRS recognition as tax-exempt non-profit
organization, sworn statements regarding the club's history and activities,
etc. The applicant for a license has the burden of proving that it meets the
requirement of the law and is, therefore, eligible to hold a license to sell
alcoholic beverages. The fact that the applicant submits all the documents
listed above does not automatically entitle the applicant to a license.
Further, the applicant may be required to submit additional information or
documentation if questions arise.
(d) A license for a private club to sell
alcoholic beverages on its premises may only be granted by action of the
Alcoholic Beverage Commission itself.
(5) License Renewal and Transfer of Location
by Private Clubs.
(a) License Renewal. Each
license issued is valid for one (1) year from the date of issuance and expires
at midnight on the expiration date. Both the issuance date and the expiration
date shall be clearly printed on the face of the license. Failure to timely and
properly file the material required by this rule shall result in the expiration
of the license.
1. On or before the expiration
date of the license, the licensee shall submit an application for license
renewal and the appropriate license fee to the nearest office of the Alcoholic
Beverage Commission.
2. Applications
for license renewal need not submit material that is required of new applicants
by Rule 0100-01-.05(5),
unless otherwise requested by the Commission.
3. All financial records shall be maintained
and available for inspection for a minimum of three (3)
years.
(b) Transfer of
Location. Licenses issued to private clubs may be transferred from one location
to another only upon the following conditions:
1. Written request for approval of such a
transfer with adequate explanation for the need of such a transfer.
2. Submittal of a satisfactory lease or deed
to the proposed new location.
3.
Written approval of the use and occupancy of the proposed new space by the
appropriate local officials.
4.
Inspection by the Tennessee Alcoholic Beverage Commission.
5. Submittal of a petition or resolution in
favor of such a transfer which reflects that it was adopted by a quorum of the
club's members at a membership meeting held pursuant to the club's charter and
bylaws.
6. When the proposed
transfer is into a new jurisdiction, the club shall publish a new notice in
compliance with paragraphs (1) through (3) of this rule and supply copies of
that notice along with required sworn statement to the ABC as well as a
certificate of good moral character upon the person pursuant to T.C.A. §
57-4-201(c)(2).
7. No such transfer
shall be approved unless the Commission, in its sole discretion, determines
that the licensee continues to meet the requirements of these rules and Chapter
4 of Title 57, T.C.A.
(6) Definitions. For the purpose of this
chapter, the following definitions shall be used:
(a) "Non-profit association" shall mean a
legal entity which is not-for-profit and has at least the following
characteristics:
1. Financial statements
covering the immediately preceding years of the club's operations. Financial
statements shall clearly indicate the amount and source of all club receipts
and the amount and purpose of all club disbursements in specific categories
consistent with standard accounting practices. In addition, the financial
statements must show a balance sheet of the club's assets and liabilities at
the end of the immediately preceding year. Copies of IRS Form W-2 for each
employee shall be maintained and made available upon request.
2. Bylaws or rules of the association which
provide membership application procedures. Those bylaws or rules shall provide
for (a) at least one (1) week waiting period between application for membership
and election to membership and (b) a committee composed of three (3) or more
members of the club vested with the authority by charter, bylaws or
regulations, to approve, reject, or make recommendations on membership
applications.
3. An association
shall have a written guest policy which reasonably limits access to club
facilities by guests.
(b)
"In existence and operating" shall mean for at least two (2) years prior to the
application for a club license, the association shall have had at least an
annual meeting of the membership with a quorum present, shall have taken
actions toward the performance of their non-profit purposes, and shall have
elected a governing body which meets periodically.
(c) "Regularly paying dues" shall mean that
the members have paid dues on a regular schedule at least annually.
(d) "Salary" shall mean a fixed periodical
compensation paid for services rendered. No salary may be paid which is based
on the amount of liquor or malt beverages sold or on the profits made from such
sales.
(e) "Suitable kitchen" shall
mean that the kitchen is adequate to prepare regular meals. Said kitchen shall
have sufficient cookware, tableware, and food preparation and storage equipment
to actually store, prepare, and serve meals. These facilities shall be
inspected and approved by appropriate local zoning and codes
inspectors.
(7) Additional
Rules for Private Clubs.
(a) Each club shall
maintain a complete membership roster. The membership roster shall contain the
names of all members, their addresses, and the date on which their dues are to
be paid. Private club licensees shall maintain their membership records at the
club premises and make them available to representatives of the Alcoholic
Beverage Commission during hours when the club is open to its members. Since
minimum membership is one hundred (100), failure to have ten (10) members at
any annual meeting shall be prima-facie evidence of the non-existence of the
association.
(b) All salaries,
rents, or management fees paid by a private club to any person or legal entity
must be reasonable and proper compensation under the circumstances.
(c) No private club shall dispense alcoholic
beverage on the premises of the club to any person other than a bona fide
member of the club or a bona fide guest of a member of the club. Alcoholic
beverages should not be served in an area to which the general public is
admitted. If the club's bar area is in a separate room from that to which the
general public is admitted and admission to the bar is limited to members of
the club and their guests, the bar may remain open. If, however, the bar is in
the room to which the general public is admitted, no alcoholic beverages are to
be served in that room during the time the general public is present.
(d) The Alcoholic Beverage Commission shall
determine whether a club exists exclusively for non-profit purposes. No such
license shall be issued where the ABC determines that the purpose is to make a
profit.
(e) Violation of any of the
rules set out herein may, in the judgment of the ABC, result in the suspension
or revocation of the club's license or the imposition of a fine under the rules
of the Commission. These rules are in addition to the other rules of the ABC
and shall apply to club licensees only.
(f) Whenever membership in the club drops
below one hundred (100), the club ceases to have facilities in which to serve
its members or guests, or the club discontinues its operations, it shall
surrender its license immediately.
(g) No private club licensed by the
Commission shall utilize any name other than the name approved by the
Commission and appearing on the club's license. Use of a d/b/a name is
prohibited.
Authority: T.C.A. §§
57-1-209,
57-3-104,
57-4-102, and
57-4-201.
