AAIAC

The Alliance of Alcohol Industry Attorneys & Consultants is a select organization of alcoholic beverage licensing and compliance professionals.

Tennessee ABC Director Clay Byrd resigning

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Tennessee ABC Director Clay Byrd resigning

Sep 25, 2018

Updated 09.28.18

Tennessee ABC Director Clay Byrd is resigning to pursue a career with a local Nashville law firm, starting October 15.  Director Byrd publicly announced his resignation at the regular monthly ABC meeting on September 27.

The ABC made no announcement about interim leadership or the search for a successor.  We presume that Assistant Director Zack Blair is at the helm.

Director Byrd brought a strong business focus to the ABC, following tumultuous times under Director Keith Bell.  Director Byrd presided over a broad agenda of change in the alcoholic beverage industry, beginning with the sale of wine in grocery stores just weeks into his tenure.

We thank Director Byrd for his service to the alcoholic beverage industry and the State of Tennessee, wishing him well in his next endeavor.

Thinking of wine in grocery stores and Director Byrd leaving conjures up the UB40 classic:

Red, red wine, stay close to me

Don’t let me be alone

It’s tearing apart

My blue, blue heart

Stay tuned for more details.

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Tennessee ABC Director Clay Byrd resigning

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Category: abc, alcohol, State of Tennessee

09.25.18

Updated 09.28.18

Tennessee ABC Director Clay Byrd is resigning to pursue a career with a local Nashville law firm, starting October 15.  Director Byrd publicly announced his resignation at the regular monthly ABC meeting on September 27.

The ABC made no announcement about interim leadership or the search for a successor.  We presume that Assistant Director Zack Blair is at the helm.

Director Byrd brought a strong business focus to the ABC, following tumultuous times under Director Keith Bell.  Director Byrd presided over a broad agenda of change in the alcoholic beverage industry, beginning with the sale of wine in grocery stores just weeks into his tenure.

We thank Director Byrd for his service to the alcoholic beverage industry and the State of Tennessee, wishing him well in his next endeavor.

Thinking of wine in grocery stores and Director Byrd leaving conjures up the UB40 classic:

Red, red wine, stay close to me

Don’t let me be alone

It’s tearing apart

My blue, blue heart

Stay tuned for more details.

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Tennessee Alcoholic Beverage chairman Bryan Kaegi resigns

Tennessee ABC puts the smack down on Jell-O shots

Dead again: Court strikes down Tennessee residency requirement for liquor store owners

Can I bring my own wine into a restaurant in Tennessee?

What to Expect During Alcoholic Beverage Recalls

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Metro Nashville Beer Board announced temporary beer permit charge

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Category: beer, Metro Nashville Beer Board

09.19.18

At its regular meeting last week, the Metro Nashville Beer Board announced it will charge $8.33 per month for temporary beer permits. The new charge became effective Monday, September 17, 2018.

Instead of seeing this as a bitter pill to swallow, we see the new procedure as icing on the cake. $8.33 is basically the margin on a couple of domestics on Lower Broadway. It’s really not much money for a permit to sell beer.

The Metro Beer Board has been streamlining the process for applications since Benton McDonough was named Executive Director a few months ago. After you supply all your documents and required inspections to the Beer Board, you can new obtain a temporary beer permit, instead of waiting for the next Beer Board meeting. Paying for the permit is only fair.

Although there is nothing in state law that specifically authorizes the city to charge for a temporary beer permit, it is just a beer permit, and beer boards are authorized to charge $100 per year for beer permits. The $8.33 amount represents the one-month prorated amount for a $100 beer permit. 

This passes statutory muster, in our humble opinion. 

For those thinking about bellyaching about the $8.33 fee, here’s a good one from Travis Tritt, suggested by our friend Willa:

Now won’t you tell me if you can

‘cause life’s so hard to understand

why’s the rich man busy dancing

while the poor man pays the band.

Oh they’re billing me for killing me

Lord have mercy on the working man.

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Can I Sell Sake in My Grocery Store in Tennessee?

New Tennessee open carry law is gamechanger for many restaurants, hotels

Can I buy alcohol on Labor Day in Tennessee?

Restaurants and hotels get the green light to give away alcohol

Metro Nashville Beer Board toasts new Tennessee open carry law

Original author: William T. Cheek III
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Metro Nashville Beer Board announced temporary beer permit charge

blog

Metro Nashville Beer Board announced temporary beer permit charge

Sep 19, 2018

At its regular meeting last week, the Metro Nashville Beer Board announced it will charge $8.33 per month for temporary beer permits. The new charge became effective Monday, September 17, 2018.

Instead of seeing this as a bitter pill to swallow, we see the new procedure as icing on the cake. $8.33 is basically the margin on a couple of domestics on Lower Broadway. It’s really not much money for a permit to sell beer.

The Metro Beer Board has been streamlining the process for applications since Benton McDonough was named Executive Director a few months ago. After you supply all your documents and required inspections to the Beer Board, you can new obtain a temporary beer permit, instead of waiting for the next Beer Board meeting. Paying for the permit is only fair.

Although there is nothing in state law that specifically authorizes the city to charge for a temporary beer permit, it is just a beer permit, and beer boards are authorized to charge $100 per year for beer permits. The $8.33 amount represents the one-month prorated amount for a $100 beer permit. 

This passes statutory muster, in our humble opinion. 

For those thinking about bellyaching about the $8.33 fee, here’s a good one from Travis Tritt, suggested by our friend Willa:

Now won’t you tell me if you can

‘cause life’s so hard to understand

why’s the rich man busy dancing

while the poor man pays the band.

Oh they’re billing me for killing me

Lord have mercy on the working man.

Continue reading
  0 Hits

Metro Nashville Beer Board announced temporary beer permit charge

Back

Category: beer, Metro Nashville Beer Board

09.19.18

At its regular meeting last week, the Metro Nashville Beer Board announced it will charge $8.33 per month for temporary beer permits. The new charge became effective Monday, September 17, 2018.

Instead of seeing this as a bitter pill to swallow, we see the new procedure as icing on the cake. $8.33 is basically the margin on a couple of domestics on Lower Broadway. It’s really not much money for a permit to sell beer.

The Metro Beer Board has been streamlining the process for applications since Benton McDonough was named Executive Director a few months ago. After you supply all your documents and required inspections to the Beer Board, you can new obtain a temporary beer permit, instead of waiting for the next Beer Board meeting. Paying for the permit is only fair.

Although there is nothing in state law that specifically authorizes the city to charge for a temporary beer permit, it is just a beer permit, and beer boards are authorized to charge $100 per year for beer permits. The $8.33 amount represents the one-month prorated amount for a $100 beer permit. 

This passes statutory muster, in our humble opinion. 

For those thinking about bellyaching about the $8.33 fee, here’s a good one from Travis Tritt, suggested by our friend Willa:

Now won’t you tell me if you can

‘cause life’s so hard to understand

why’s the rich man busy dancing

while the poor man pays the band.

Oh they’re billing me for killing me

Lord have mercy on the working man.

Subscribe Now!

Can I Sell Sake in My Grocery Store in Tennessee?

New Tennessee open carry law is gamechanger for many restaurants, hotels

Can I buy alcohol on Christmas in Tennessee?

Restaurants and hotels get the green light to give away alcohol

Metro Nashville Beer Board toasts new Tennessee open carry law

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Duncan Liquor Law Letter - August 2018

Duncan Liquor Law Letter - August 2018

Read Duncan Liquor Law Letter

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Construction Junction’s Steel City Big Pour

We’re excited to be sponsoring Construction Junction’s Steel City Big Pour on September 15 in Point Breeze. This marks the 12th year for Construction Junction’s annual fundraiser and there’s NOTHING like the Steel City Big Pour! Join us for live music, art, and a wide selection of craft beer, food, coffee, and refreshments. Learn more […]

The post Construction Junction’s Steel City Big Pour appeared first on Flaherty & O'Hara.

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Metro Nashville Beer Board toasts new Tennessee open carry law

Metro Nashville Beer Board toasts new Tennessee open carry law Metro Nashville Beer Board toasts new Tennessee open carry law

We believe that the Metro Nashville Beer Board has become the first local board in the State of Tennessee to officially approve “open carry” of beer between two different licensed premises, pursuant to the newly-enacted open carry law in P.C. 755.  We blogged about P.C. 755 here.

We should clarify that open carry involves carrying alcoholic beverages between two contiguous licensed premises.  Open carry is not open container, where alcohol can be carried on an open street, down a sidewalk or in other public places. 

The Metro Beer Board required full applications by each permittee in order to approve the expanded premises. Approval was required before patrons carry beer between the two permit holders. 

We have recommended that beer boards require some sort of notice, at a minimum, before alcohol is allowed to leave the traditional licensed premises.  Metro Nashville asked for an application, the $250 application fee and most of the normal documents one would expect for expanding the premises of a licensed establishment, much like adding a patio to an existing restaurant.

As much as we are disposed to rail on the man, we cannot fault Nashville’s requirement concerning open carry under P.C. 755 — it is entirely reasonable.

Our buddy Willa reminds us of Eric Church’s sentiments about cold beer and the man:

Early Monday morning, til Friday at five

Man I work, work, work but I don't climb, climb, climb

Boss man can shove that overtime up his can

All I want to do is put a drink in my hand

Subscribe Now!

Tennessee Alcoholic Beverage chairman Bryan Kaegi resigns

Tennessee ABC puts the smack down on Jell-O shots

Can I bring my own wine into a restaurant in Tennessee?

What to Expect During Alcoholic Beverage Recalls

How Whisky Distillers use Peat Bogs to Create Unforgettable Flavors

Original author: William T. Cheek III
Continue reading
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Tags:

Metro Nashville Beer Board toasts new Tennessee open carry law

blog

Metro Nashville Beer Board toasts new Tennessee open carry law

Aug 10, 2018

We believe that the Metro Nashville Beer Board has become the first local board in the State of Tennessee to officially approve “open carry” of beer between two different licensed premises, pursuant to the newly-enacted open carry law in P.C. 755.  We blogged about P.C. 755 here.

We should clarify that open carry involves carrying alcoholic beverages between two contiguous licensed premises.  Open carry is not open container, where alcohol can be carried on an open street, down a sidewalk or in other public places. 

The Metro Beer Board required full applications by each permittee in order to approve the expanded premises. Approval was required before patrons carry beer between the two permit holders. 

We have recommended that beer boards require some sort of notice, at a minimum, before alcohol is allowed to leave the traditional licensed premises.  Metro Nashville asked for an application, the $250 application fee and most of the normal documents one would expect for expanding the premises of a licensed establishment, much like adding a patio to an existing restaurant.

As much as we are disposed to rail on the man, we cannot fault Nashville’s requirement concerning open carry under P.C. 755 — it is entirely reasonable.

Our buddy Willa reminds us of Eric Church’s sentiments about cold beer and the man:

Early Monday morning, til Friday at five

Man I work, work, work but I don't climb, climb, climb

Boss man can shove that overtime up his can

All I want to do is put a drink in my hand

Click here to learn more about Waller's alcoholic beverage team.

Continue reading
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Metro Nashville Beer Board toasts new Tennessee open carry law

Back

Category: open carry, Beer Board, alcohol

08.10.18

We believe that the Metro Nashville Beer Board has become the first local board in the State of Tennessee to officially approve “open carry” of beer between two different licensed premises, pursuant to the newly-enacted open carry law in P.C. 755.  We blogged about P.C. 755 here.

We should clarify that open carry involves carrying alcoholic beverages between two contiguous licensed premises.  Open carry is not open container, where alcohol can be carried on an open street, down a sidewalk or in other public places. 

The Metro Beer Board required full applications by each permittee in order to approve the expanded premises. Approval was required before patrons carry beer between the two permit holders. 

We have recommended that beer boards require some sort of notice, at a minimum, before alcohol is allowed to leave the traditional licensed premises.  Metro Nashville asked for an application, the $250 application fee and most of the normal documents one would expect for expanding the premises of a licensed establishment, much like adding a patio to an existing restaurant.

As much as we are disposed to rail on the man, we cannot fault Nashville’s requirement concerning open carry under P.C. 755 — it is entirely reasonable.

Our buddy Willa reminds us of Eric Church’s sentiments about cold beer and the man:

Early Monday morning, til Friday at five

Man I work, work, work but I don't climb, climb, climb

Boss man can shove that overtime up his can

All I want to do is put a drink in my hand

Click here to learn more about Waller's alcoholic beverage team.

Subscribe Now!

Tennessee Alcoholic Beverage chairman Bryan Kaegi resigns

Tennessee ABC puts the smack down on Jell-O shots

Can I bring my own wine into a restaurant in Tennessee?

What to Expect During Alcoholic Beverage Recalls

How Whisky Distillers use Peat Bogs to Create Unforgettable Flavors

Continue reading
  1431 Hits

Tennessee legislature serves up a host of new alcohol laws in 2018

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07.31.18

Sunday sales of alcohol at retail liquor stores and grocery stores stole the spotlight in the 2018 Tennessee legislative session. 

For industry insiders, however, the biggest news in 2018 so far has not been legislative.  Ask anyone who has renewed a liquor license renewal in the ABC’s new online system, RLPS. It is a memorable experience, to say the least. (In case you have been living under a rock, all new liquor license applications and renewals in Tennessee must be filed online through RLPS.)

Without further ado, here are the highlights from the 2018 Tennessee legislative session.

Sunday and Holiday Sales.  P.C. 783 legalized the sale of beer, wine and spirits at retail liquor stores starting April 22. Sales of wine at food stores start on Sunday, January 6, 2019. 

In addition, P.C. 783 – available at this link – legalized the sale of beer, wine and spirits on New Year’s Day, Memorial Day, the Fourth of July and Labor Day.  Retail liquor stores must be closed, and food stores cannot sell wine on Easter, Thanksgiving or Christmas.

Some legislators had quite a scare when they discovered that P.C. 783 actually authorized the sale of wine in food stores on Easter, Thanksgiving and Christmas.  Following a plethora of speeches about the evils of alcohol and the virtues of attending church service on religious holidays, they found redemption and banned the sale of wine on Easter, Thanksgiving and Christmas in a late amendment to P.C. 1010.

Vertical Driver’s License.  Tennessee became the 48th state to enact a vertical driver’s license for drivers under the age of 21.

Image title

Tennessee started issuing vertical licenses on July 1. 

The vertical license does not expire when the driver turns 21, which continues a long-standing problem with under-21 driver’s licenses in Tennessee.  Read more at our blog.

Open Carry.  We predict that new “open carry” law in P.C. 755 will be the sleeper hit of 2018 among industry insiders. Open carry allows beer and alcoholic beverages to be carried by patrons between different licensed premises, provided they are connected. Open carry also paves the way for multiple restaurants to share a common dining space, such as a food court. The law even allows restaurants to open a free-standing bar in a common area, like a food hall.  Read more here

P.C. 755 also gives the Tennessee ABC more discretion concerning barriers in outdoor areas.  For decades, the ABC has consistently required fencing or similar barriers to surround outdoor dining areas. As of press time, the ABC has not issued any guidance concerning what type of barrier will work for “reasonable efforts to ensure that a customer cannot leave the premises with an alcoholic beverage or beer…”  Stay tuned to Last Call for more details.

Samples.  For decades, Tennessee law has prohibited on-premises retailers such as restaurants and hotels from giving away wine and spirits.  Section 2 of P.C. 755 allows a licensee to serve a sample of wine – up to one ounce. Hotels are authorized to “provision” up to four 750 milliliter-or-smaller sealed bottles of wine or spirits. Although not entirely clear, we believe that the legislation limits hotels to giving away wine or spirits, as part of the room rental. We do not read P.C. 755 as authorizing hotels to sell wine and spirits by the bottle.

New Handgun Sign.  Beginning January 1, 2018, a 2017 amendment to T.C.A. § 39-17-1359 set a new standard for signage required to prohibit patrons from carrying firearms onto a premises that has a liquor license. The universal “no handgun” sign is no longer valid in Tennessee.

In order to prohibit patrons from carrying handguns, restaurants, hotels and other license holders must post new larger signs that state “NO FIREARMS ALLOWED” in letters that are at least 1” high and 8” wide. The new law also requires that the sign state “As authorized by T.C.A. § 39-17-1359.”  And if that’s not enough, the sign also has to include the universal “no handgun” sign, inside a circle at least 4” in diameter.

Here is a sample.

Image title

Keep in mind that law enforcement officers may still carry firearms, regardless of sign postings.

We see the new law as either a favor for some legislator’s friend who makes handgun signs, or, more likely, a way to make it more difficult and less appealing to prohibit carrying firearms where alcoholic beverages are consumed on-premises.

Fresh Start Act.  P.C. 793 clears the way for some convicted criminals to own establishments with liquor licenses. Previously, Tennessee law was clear: Persons convicted of a felony or a crime involving the sale, transportation or manufacture of alcoholic beverages could not own an establishment that holds a liquor license, if convicted within eight years of the date of the application.

The Fresh Start Act muddies the waters and sets forth criteria to consider when denying an application or refusing a renewal based on a criminal conviction.  Kudos to Tennessee ABC Director Clay Byrd and staff for promptly issuing guidelines for the Fresh Start Act process.  Here is a copy of the memo

LBD Tax Notice

In response to recent legislation, the Tennessee Department of Revenue issued a tax notice in February that clarifies that drink taxes can be included in menu prices or listed on the final bill.  The law now gives restaurants and bars the option to decide whether liquor by the drink sales taxes should be listed on menus, or on the final bill presented to the customer.  Read more at our blog.

Retail Liquor Store Moratorium.  As part of the legislative tradeoff for allowing Sunday and holiday sales of wine in food stores, the Legislature imposed a moratorium on the issuance of new retail off-premises liquor licenses. The Tennessee ABC is no longer issuing new retail liquor licenses. An applicant must either purchase an existing store or wait until the moratorium expires on July 1, 2021.

P.C. 783 sets up a process to transfer liquor licenses if a purchaser would like to move the location of the liquor store. The new location cannot be within 1,500 feet of an existing retail liquor store and must be inside the same city or county.

The moratorium requires that all Certificates of Compliance for a transfer of location contain specific language stating that no other liquor store is located within 1,500 feet.

The moratorium may lead to a secondary market for the value of retail liquor licenses. Because the moratorium is set to expire in less than three years, we do not see licenses building significant value in Tennessee.

10% Markup on Spirits.  P.C. 783 also imposed a 10% minimum markup on the price of spirits. The 10% markup parallels the provisions of the 20% markup, already in place for wine.

We see the 10% markup on spirits as a first step toward legalizing the sale of spirits in food stores. Note to Consumers: don’t hold your breath. You are not going to be Krogering for vodka any time soon.

23-7.  Our favorite legislative development in 2018 was a law that never came to pass. Serving liquor 23-7 stole the show during the 2017 legislative session.  The Diner in downtown Nashville and Scoreboard Bar & Grill in Donelson lobbied for special legislation that allows the restaurants to serve alcohol 23 hours a day, 7 days a week, beginning at 4 a.m. until 3 a.m.

After all the chatter in the industry about the unfairness of allowing two bars to serve late-night drunks, no one seemed interested in pursuing an expansion of the legislation in 2018. Perhaps the industry is wise enough to know that last call at 3 a.m. ain’t so bad.

The Legislature adjourning always reminds us of the popular David Bowie tune Modern Love: 

Gets me to the Church on Time

(Church on Time)

Terrifies me

(Church on Time)

Makes me party

(Church on Time)

Puts my trust in God and Man

Delivery.  P.C. 765 paves the way for delivery of beer, wine and spirits by grocery delivery services such as InstaCart, Shipt, Post-Mates and ye olde mom and pop delivery service … Amazon. The new delivery law waters down the requirements for drivers and generally makes licensing for delivery services significantly easier.  Previously, only retail liquor stores and prepared food delivery services could deliver alcoholic beverages. P.C. 765 expands the scope of delivery services to include delivery of alcoholic beverages with groceries.

Instead of some form of responsible alcohol sale and age identification training, delivery service licensees only have to show that drivers are 21 or older, passed a background check indicating no felony convictions in the last 5 years, or any crime involving the sale or distribution of alcohol within the past seven years, and hold a valid driver’s license. The delivery service license fee is based on the number of delivery drivers. 

Perhaps most important is the provision allowing independent contractors to deliver. This allows an Uber-type arrangement, where random drivers respond to Internet delivery services to rush alcohol to someone’s home.

Under prior law, customers could order alcoholic beverages through apps such as Drizy, but delivery was made by employees of retail liquor stores who are trained as certified clerks.

P.C. 933 requires that delivery services only deliver to the physical address placed with the original order. Although delivery can only be made after checking the recipient’s age, there is no requirement that the delivery be made to the person who originally placed the order. All you need is one 21-year-old with an ID to deliver alcohol to a bunch of minors at a party. And with untrained Uber-type drivers delivering orders …oh well, we digress.

Local Option.  Under current law, only cities or towns with populations of more than 925 can authorize manufacturing, storage, distribution and sale of alcoholic beverages by local option.  P.C. 692 and 891 create exceptions to the minimum 925 population, allowing Etheridge and Cedar Hill to hold referendums to allow on and off-premise retail liquor sales. 

Storage.  P.C. 933 specifies that retailers can only store beer on the premises where beer will be sold.  Apparently, someone had the bright idea to self-wholesale beer for multiple stores, which is now prohibited.

Collegiate Sports.  As the dog days of summer drag on, one thing continues to inch closer – football. Fans of Middle Tennessee State University and Tennessee State University should be particularly excited about the 2018 football season. P.C. 1010 clears the path for authorizing the sale of alcohol at MTSU and TSU sporting events.

Sneaking alcohol into school sporting events is a time-honored tradition for co-eds and adults alike. Universities are beginning to capitalize on the lucrative revenue stream available from the sale of alcohol, which was generally prohibited under the guise of student safety. Indeed, seven Power Five Conference Schools – Texas, West Virginia, Minnesota, Maryland, Syracuse, Miami and Louisville, already sell beer at home games.

Because Western Kentucky University, another USA Conference member, also allows alcohol sales at sporting events, MTSU should not have an issue with Conference approval. As of press time, there was insufficient information concerning whether TSU must first obtain approval from the Ohio Valley Conference. For all those Vol fans out there, the Southeastern Conference currently does not allow any school to sell alcohol at school-sponsored sporting events.  P.C. 1010 only applies to facilities in Davidson and Rutherford counties.

Distilleries. P.C. 1027 clarified that samples served and beverages sold for consumption at the distillery are not subject to the 15% privilege tax. The legislation reverses an Attorney General Opinion finding that distiller’s retail sales are subject to the 15% privilege tax. The legislature clarified that aged whiskey barrels are not subject to property taxes, also overturning a Tennessee Attorney General opinion to the contrary.  P.C. 717 expands storage options for distilleries, allowing distilleries to store in adjacent counties, as well as any county that is authorized manufacturing. P.C. 650 allows manufacturing in Lenoir City.

Premier Type Tourist Resorts.  The following premier type tourist resorts were approved, allowing on-premises consumption of alcoholic beverages:

Pine Creek Golf Course in Wilson County Capitol Theatre in Greeneville Gaylord Springs Golf Links in Nashville Whitestone Country Inn in Kingston National Museum of African American Music in Nashville (Opening 2019) The Church @ 117 in Coffee County Drafts and Watercrafts in Franklin County The Caverns in Grundy County South Jackson Civic Center in Tullahoma Tellico Village in Loudon County Wildwood Resort & Marina in Granville 1892 Restaurant in Williamson County Leipers Fork Market in Williamson County Marblegate Farms in Blount County Blue Mountain Mist Country Inn & Spa in Sevier County Amis Mill Eatery in Hawkins County Shelly Belle’s in Claiborne County Oasis Pizza Bar in Claiborne County

Special credit goes to our summer associate and UT law student James Nelson for all his hard work on this project.


Click here to learn more about Waller's alcoholic beverage team.

Original author: William T. Cheek III
Continue reading
  2675 Hits
Tags:

Tennessee legislature serves up a host of new alcohol laws in 2018

blog

Tennessee legislature serves up a host of new alcohol laws in 2018

Jul 31, 2018

Sunday sales of alcohol at retail liquor stores and grocery stores stole the spotlight in the 2018 Tennessee legislative session. 

For industry insiders, however, the biggest news in 2018 so far has not been legislative.  Ask anyone who has renewed a liquor license renewal in the ABC’s new online system, RLPS. It is a memorable experience, to say the least. (In case you have been living under a rock, all new liquor license applications and renewals in Tennessee must be filed online through RLPS.)

Without further ado, here are the highlights from the 2018 Tennessee legislative session.

Sunday and Holiday Sales.  P.C. 783 legalized the sale of beer, wine and spirits at retail liquor stores starting April 22. Sales of wine at food stores start on Sunday, January 6, 2019. 

In addition, P.C. 783 – available at this link – legalized the sale of beer, wine and spirits on New Year’s Day, Memorial Day, the Fourth of July and Labor Day.  Retail liquor stores must be closed, and food stores cannot sell wine on Easter, Thanksgiving or Christmas.

Some legislators had quite a scare when they discovered that P.C. 783 actually authorized the sale of wine in food stores on Easter, Thanksgiving and Christmas.  Following a plethora of speeches about the evils of alcohol and the virtues of attending church service on religious holidays, they found redemption and banned the sale of wine on Easter, Thanksgiving and Christmas in a late amendment to P.C. 1010.

Vertical Driver’s License.  Tennessee became the 48th state to enact a vertical driver’s license for drivers under the age of 21.

Image title

Tennessee started issuing vertical licenses on July 1. 

The vertical license does not expire when the driver turns 21, which continues a long-standing problem with under-21 driver’s licenses in Tennessee.  Read more at our blog.

Open Carry.  We predict that new “open carry” law in P.C. 755 will be the sleeper hit of 2018 among industry insiders. Open carry allows beer and alcoholic beverages to be carried by patrons between different licensed premises, provided they are connected. Open carry also paves the way for multiple restaurants to share a common dining space, such as a food court. The law even allows restaurants to open a free-standing bar in a common area, like a food hall.  Read more here

P.C. 755 also gives the Tennessee ABC more discretion concerning barriers in outdoor areas.  For decades, the ABC has consistently required fencing or similar barriers to surround outdoor dining areas. As of press time, the ABC has not issued any guidance concerning what type of barrier will work for “reasonable efforts to ensure that a customer cannot leave the premises with an alcoholic beverage or beer…”  Stay tuned to Last Call for more details.

Samples.  For decades, Tennessee law has prohibited on-premises retailers such as restaurants and hotels from giving away wine and spirits.  Section 2 of P.C. 755 allows a licensee to serve a sample of wine – up to one ounce. Hotels are authorized to “provision” up to four 750 milliliter-or-smaller sealed bottles of wine or spirits. Although not entirely clear, we believe that the legislation limits hotels to giving away wine or spirits, as part of the room rental. We do not read P.C. 755 as authorizing hotels to sell wine and spirits by the bottle.

New Handgun Sign.  Beginning January 1, 2018, a 2017 amendment to T.C.A. § 39-17-1359 set a new standard for signage required to prohibit patrons from carrying firearms onto a premises that has a liquor license. The universal “no handgun” sign is no longer valid in Tennessee.

In order to prohibit patrons from carrying handguns, restaurants, hotels and other license holders must post new larger signs that state “NO FIREARMS ALLOWED” in letters that are at least 1” high and 8” wide. The new law also requires that the sign state “As authorized by T.C.A. § 39-17-1359.”  And if that’s not enough, the sign also has to include the universal “no handgun” sign, inside a circle at least 4” in diameter.

Here is a sample.

Image title

Keep in mind that law enforcement officers may still carry firearms, regardless of sign postings.

We see the new law as either a favor for some legislator’s friend who makes handgun signs, or, more likely, a way to make it more difficult and less appealing to prohibit carrying firearms where alcoholic beverages are consumed on-premises.

Fresh Start Act.  P.C. 793 clears the way for some convicted criminals to own establishments with liquor licenses. Previously, Tennessee law was clear: Persons convicted of a felony or a crime involving the sale, transportation or manufacture of alcoholic beverages could not own an establishment that holds a liquor license, if convicted within eight years of the date of the application.

The Fresh Start Act muddies the waters and sets forth criteria to consider when denying an application or refusing a renewal based on a criminal conviction.  Kudos to Tennessee ABC Director Clay Byrd and staff for promptly issuing guidelines for the Fresh Start Act process.  Here is a copy of the memo.

LBD Tax Notice

In response to recent legislation, the Tennessee Department of Revenue issued a tax notice in February that clarifies that drink taxes can be included in menu prices or listed on the final bill.  The law now gives restaurants and bars the option to decide whether liquor by the drink sales taxes should be listed on menus, or on the final bill presented to the customer.  Read more at our blog.

Retail Liquor Store Moratorium.  As part of the legislative tradeoff for allowing Sunday and holiday sales of wine in food stores, the Legislature imposed a moratorium on the issuance of new retail off-premises liquor licenses. The Tennessee ABC is no longer issuing new retail liquor licenses. An applicant must either purchase an existing store or wait until the moratorium expires on July 1, 2021.

P.C. 783 sets up a process to transfer liquor licenses if a purchaser would like to move the location of the liquor store. The new location cannot be within 1,500 feet of an existing retail liquor store and must be inside the same city or county.

The moratorium requires that all Certificates of Compliance for a transfer of location contain specific language stating that no other liquor store is located within 1,500 feet.

The moratorium may lead to a secondary market for the value of retail liquor licenses. Because the moratorium is set to expire in less than three years, we do not see licenses building significant value in Tennessee.

10% Markup on Spirits.  P.C. 783 also imposed a 10% minimum markup on the price of spirits. The 10% markup parallels the provisions of the 20% markup, already in place for wine.

We see the 10% markup on spirits as a first step toward legalizing the sale of spirits in food stores. Note to Consumers: don’t hold your breath. You are not going to be Krogering for vodka any time soon.

23-7.  Our favorite legislative development in 2018 was a law that never came to pass. Serving liquor 23-7 stole the show during the 2017 legislative session.  The Diner in downtown Nashville and Scoreboard Bar & Grill in Donelson lobbied for special legislation that allows the restaurants to serve alcohol 23 hours a day, 7 days a week, beginning at 4 a.m. until 3 a.m.

After all the chatter in the industry about the unfairness of allowing two bars to serve late-night drunks, no one seemed interested in pursuing an expansion of the legislation in 2018. Perhaps the industry is wise enough to know that last call at 3 a.m. ain’t so bad.

The Legislature adjourning always reminds us of the popular David Bowie tune Modern Love: 

Gets me to the Church on Time

(Church on Time)

Terrifies me

(Church on Time)

Makes me party

(Church on Time)

Puts my trust in God and Man

Delivery.  P.C. 765 paves the way for delivery of beer, wine and spirits by grocery delivery services such as InstaCart, Shipt, Post-Mates and ye olde mom and pop delivery service … Amazon. The new delivery law waters down the requirements for drivers and generally makes licensing for delivery services significantly easier.  Previously, only retail liquor stores and prepared food delivery services could deliver alcoholic beverages. P.C. 765 expands the scope of delivery services to include delivery of alcoholic beverages with groceries.

Instead of some form of responsible alcohol sale and age identification training, delivery service licensees only have to show that drivers are 21 or older, passed a background check indicating no felony convictions in the last 5 years, or any crime involving the sale or distribution of alcohol within the past seven years, and hold a valid driver’s license. The delivery service license fee is based on the number of delivery drivers. 

Perhaps most important is the provision allowing independent contractors to deliver. This allows an Uber-type arrangement, where random drivers respond to Internet delivery services to rush alcohol to someone’s home.

Under prior law, customers could order alcoholic beverages through apps such as Drizy, but delivery was made by employees of retail liquor stores who are trained as certified clerks.

P.C. 933 requires that delivery services only deliver to the physical address placed with the original order. Although delivery can only be made after checking the recipient’s age, there is no requirement that the delivery be made to the person who originally placed the order. All you need is one 21-year-old with an ID to deliver alcohol to a bunch of minors at a party. And with untrained Uber-type drivers delivering orders …oh well, we digress.

Local Option.  Under current law, only cities or towns with populations of more than 925 can authorize manufacturing, storage, distribution and sale of alcoholic beverages by local option.  P.C. 692 and 891 create exceptions to the minimum 925 population, allowing Etheridge and Cedar Hill to hold referendums to allow on and off-premise retail liquor sales. 

Storage.  P.C. 933 specifies that retailers can only store beer on the premises where beer will be sold.  Apparently, someone had the bright idea to self-wholesale beer for multiple stores, which is now prohibited.

Collegiate Sports.  As the dog days of summer drag on, one thing continues to inch closer – football. Fans of Middle Tennessee State University and Tennessee State University should be particularly excited about the 2018 football season. P.C. 1010 clears the path for authorizing the sale of alcohol at MTSU and TSU sporting events.

Sneaking alcohol into school sporting events is a time-honored tradition for co-eds and adults alike. Universities are beginning to capitalize on the lucrative revenue stream available from the sale of alcohol, which was generally prohibited under the guise of student safety. Indeed, seven Power Five Conference Schools – Texas, West Virginia, Minnesota, Maryland, Syracuse, Miami and Louisville, already sell beer at home games.

Because Western Kentucky University, another USA Conference member, also allows alcohol sales at sporting events, MTSU should not have an issue with Conference approval. As of press time, there was insufficient information concerning whether TSU must first obtain approval from the Ohio Valley Conference. For all those Vol fans out there, the Southeastern Conference currently does not allow any school to sell alcohol at school-sponsored sporting events.  P.C. 1010 only applies to facilities in Davidson and Rutherford counties.

Distilleries. P.C. 1027 clarified that samples served and beverages sold for consumption at the distillery are not subject to the 15% privilege tax. The legislation reverses an Attorney General Opinion finding that distiller’s retail sales are subject to the 15% privilege tax. The legislature clarified that aged whiskey barrels are not subject to property taxes, also overturning a Tennessee Attorney General opinion to the contrary.  P.C. 717 expands storage options for distilleries, allowing distilleries to store in adjacent counties, as well as any county that is authorized manufacturing. P.C. 650 allows manufacturing in Lenoir City.

Premier Type Tourist Resorts.  The following premier type tourist resorts were approved, allowing on-premises consumption of alcoholic beverages:

Pine Creek Golf Course in Wilson County Capitol Theatre in Greeneville Gaylord Springs Golf Links in Nashville Whitestone Country Inn in Kingston National Museum of African American Music in Nashville (Opening 2019) The Church @ 117 in Coffee County Drafts and Watercrafts in Franklin County The Caverns in Grundy County South Jackson Civic Center in Tullahoma Tellico Village in Loudon County Wildwood Resort & Marina in Granville 1892 Restaurant in Williamson County Leipers Fork Market in Williamson County Marblegate Farms in Blount County Blue Mountain Mist Country Inn & Spa in Sevier County Amis Mill Eatery in Hawkins County Shelly Belle’s in Claiborne County Oasis Pizza Bar in Claiborne County

Special credit goes to our summer associate and UT law student James Nelson for all his hard work on this project.

Click here to learn more about Waller's alcoholic beverage team.

Continue reading
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Tennessee legislature serves up a host of new alcohol laws in 2018

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07.31.18

Sunday sales of alcohol at retail liquor stores and grocery stores stole the spotlight in the 2018 Tennessee legislative session. 

For industry insiders, however, the biggest news in 2018 so far has not been legislative.  Ask anyone who has renewed a liquor license renewal in the ABC’s new online system, RLPS. It is a memorable experience, to say the least. (In case you have been living under a rock, all new liquor license applications and renewals in Tennessee must be filed online through RLPS.)

Without further ado, here are the highlights from the 2018 Tennessee legislative session.

Sunday and Holiday Sales.  P.C. 783 legalized the sale of beer, wine and spirits at retail liquor stores starting April 22. Sales of wine at food stores start on Sunday, January 6, 2019. 

In addition, P.C. 783 – available at this link – legalized the sale of beer, wine and spirits on New Year’s Day, Memorial Day, the Fourth of July and Labor Day.  Retail liquor stores must be closed, and food stores cannot sell wine on Easter, Thanksgiving or Christmas.

Some legislators had quite a scare when they discovered that P.C. 783 actually authorized the sale of wine in food stores on Easter, Thanksgiving and Christmas.  Following a plethora of speeches about the evils of alcohol and the virtues of attending church service on religious holidays, they found redemption and banned the sale of wine on Easter, Thanksgiving and Christmas in a late amendment to P.C. 1010.

Vertical Driver’s License.  Tennessee became the 48th state to enact a vertical driver’s license for drivers under the age of 21.

Image title

Tennessee started issuing vertical licenses on July 1. 

The vertical license does not expire when the driver turns 21, which continues a long-standing problem with under-21 driver’s licenses in Tennessee.  Read more at our blog.

Open Carry.  We predict that new “open carry” law in P.C. 755 will be the sleeper hit of 2018 among industry insiders. Open carry allows beer and alcoholic beverages to be carried by patrons between different licensed premises, provided they are connected. Open carry also paves the way for multiple restaurants to share a common dining space, such as a food court. The law even allows restaurants to open a free-standing bar in a common area, like a food hall.  Read more here

P.C. 755 also gives the Tennessee ABC more discretion concerning barriers in outdoor areas.  For decades, the ABC has consistently required fencing or similar barriers to surround outdoor dining areas. As of press time, the ABC has not issued any guidance concerning what type of barrier will work for “reasonable efforts to ensure that a customer cannot leave the premises with an alcoholic beverage or beer…”  Stay tuned to Last Call for more details.

Samples.  For decades, Tennessee law has prohibited on-premises retailers such as restaurants and hotels from giving away wine and spirits.  Section 2 of P.C. 755 allows a licensee to serve a sample of wine – up to one ounce. Hotels are authorized to “provision” up to four 750 milliliter-or-smaller sealed bottles of wine or spirits. Although not entirely clear, we believe that the legislation limits hotels to giving away wine or spirits, as part of the room rental. We do not read P.C. 755 as authorizing hotels to sell wine and spirits by the bottle.

New Handgun Sign.  Beginning January 1, 2018, a 2017 amendment to T.C.A. § 39-17-1359 set a new standard for signage required to prohibit patrons from carrying firearms onto a premises that has a liquor license. The universal “no handgun” sign is no longer valid in Tennessee.

In order to prohibit patrons from carrying handguns, restaurants, hotels and other license holders must post new larger signs that state “NO FIREARMS ALLOWED” in letters that are at least 1” high and 8” wide. The new law also requires that the sign state “As authorized by T.C.A. § 39-17-1359.”  And if that’s not enough, the sign also has to include the universal “no handgun” sign, inside a circle at least 4” in diameter.

Here is a sample.

Image title

Keep in mind that law enforcement officers may still carry firearms, regardless of sign postings.

We see the new law as either a favor for some legislator’s friend who makes handgun signs, or, more likely, a way to make it more difficult and less appealing to prohibit carrying firearms where alcoholic beverages are consumed on-premises.

Fresh Start Act.  P.C. 793 clears the way for some convicted criminals to own establishments with liquor licenses. Previously, Tennessee law was clear: Persons convicted of a felony or a crime involving the sale, transportation or manufacture of alcoholic beverages could not own an establishment that holds a liquor license, if convicted within eight years of the date of the application.

The Fresh Start Act muddies the waters and sets forth criteria to consider when denying an application or refusing a renewal based on a criminal conviction.  Kudos to Tennessee ABC Director Clay Byrd and staff for promptly issuing guidelines for the Fresh Start Act process.  Here is a copy of the memo.

LBD Tax Notice

In response to recent legislation, the Tennessee Department of Revenue issued a tax notice in February that clarifies that drink taxes can be included in menu prices or listed on the final bill.  The law now gives restaurants and bars the option to decide whether liquor by the drink sales taxes should be listed on menus, or on the final bill presented to the customer.  Read more at our blog.

Retail Liquor Store Moratorium.  As part of the legislative tradeoff for allowing Sunday and holiday sales of wine in food stores, the Legislature imposed a moratorium on the issuance of new retail off-premises liquor licenses. The Tennessee ABC is no longer issuing new retail liquor licenses. An applicant must either purchase an existing store or wait until the moratorium expires on July 1, 2021.

P.C. 783 sets up a process to transfer liquor licenses if a purchaser would like to move the location of the liquor store. The new location cannot be within 1,500 feet of an existing retail liquor store and must be inside the same city or county.

The moratorium requires that all Certificates of Compliance for a transfer of location contain specific language stating that no other liquor store is located within 1,500 feet.

The moratorium may lead to a secondary market for the value of retail liquor licenses. Because the moratorium is set to expire in less than three years, we do not see licenses building significant value in Tennessee.

10% Markup on Spirits.  P.C. 783 also imposed a 10% minimum markup on the price of spirits. The 10% markup parallels the provisions of the 20% markup, already in place for wine.

We see the 10% markup on spirits as a first step toward legalizing the sale of spirits in food stores. Note to Consumers: don’t hold your breath. You are not going to be Krogering for vodka any time soon.

23-7.  Our favorite legislative development in 2018 was a law that never came to pass. Serving liquor 23-7 stole the show during the 2017 legislative session.  The Diner in downtown Nashville and Scoreboard Bar & Grill in Donelson lobbied for special legislation that allows the restaurants to serve alcohol 23 hours a day, 7 days a week, beginning at 4 a.m. until 3 a.m.

After all the chatter in the industry about the unfairness of allowing two bars to serve late-night drunks, no one seemed interested in pursuing an expansion of the legislation in 2018. Perhaps the industry is wise enough to know that last call at 3 a.m. ain’t so bad.

The Legislature adjourning always reminds us of the popular David Bowie tune Modern Love: 

Gets me to the Church on Time

(Church on Time)

Terrifies me

(Church on Time)

Makes me party

(Church on Time)

Puts my trust in God and Man

Delivery.  P.C. 765 paves the way for delivery of beer, wine and spirits by grocery delivery services such as InstaCart, Shipt, Post-Mates and ye olde mom and pop delivery service … Amazon. The new delivery law waters down the requirements for drivers and generally makes licensing for delivery services significantly easier.  Previously, only retail liquor stores and prepared food delivery services could deliver alcoholic beverages. P.C. 765 expands the scope of delivery services to include delivery of alcoholic beverages with groceries.

Instead of some form of responsible alcohol sale and age identification training, delivery service licensees only have to show that drivers are 21 or older, passed a background check indicating no felony convictions in the last 5 years, or any crime involving the sale or distribution of alcohol within the past seven years, and hold a valid driver’s license. The delivery service license fee is based on the number of delivery drivers. 

Perhaps most important is the provision allowing independent contractors to deliver. This allows an Uber-type arrangement, where random drivers respond to Internet delivery services to rush alcohol to someone’s home.

Under prior law, customers could order alcoholic beverages through apps such as Drizy, but delivery was made by employees of retail liquor stores who are trained as certified clerks.

P.C. 933 requires that delivery services only deliver to the physical address placed with the original order. Although delivery can only be made after checking the recipient’s age, there is no requirement that the delivery be made to the person who originally placed the order. All you need is one 21-year-old with an ID to deliver alcohol to a bunch of minors at a party. And with untrained Uber-type drivers delivering orders …oh well, we digress.

Local Option.  Under current law, only cities or towns with populations of more than 925 can authorize manufacturing, storage, distribution and sale of alcoholic beverages by local option.  P.C. 692 and 891 create exceptions to the minimum 925 population, allowing Etheridge and Cedar Hill to hold referendums to allow on and off-premise retail liquor sales. 

Storage.  P.C. 933 specifies that retailers can only store beer on the premises where beer will be sold.  Apparently, someone had the bright idea to self-wholesale beer for multiple stores, which is now prohibited.

Collegiate Sports.  As the dog days of summer drag on, one thing continues to inch closer – football. Fans of Middle Tennessee State University and Tennessee State University should be particularly excited about the 2018 football season. P.C. 1010 clears the path for authorizing the sale of alcohol at MTSU and TSU sporting events.

Sneaking alcohol into school sporting events is a time-honored tradition for co-eds and adults alike. Universities are beginning to capitalize on the lucrative revenue stream available from the sale of alcohol, which was generally prohibited under the guise of student safety. Indeed, seven Power Five Conference Schools – Texas, West Virginia, Minnesota, Maryland, Syracuse, Miami and Louisville, already sell beer at home games.

Because Western Kentucky University, another USA Conference member, also allows alcohol sales at sporting events, MTSU should not have an issue with Conference approval. As of press time, there was insufficient information concerning whether TSU must first obtain approval from the Ohio Valley Conference. For all those Vol fans out there, the Southeastern Conference currently does not allow any school to sell alcohol at school-sponsored sporting events.  P.C. 1010 only applies to facilities in Davidson and Rutherford counties.

Distilleries. P.C. 1027 clarified that samples served and beverages sold for consumption at the distillery are not subject to the 15% privilege tax. The legislation reverses an Attorney General Opinion finding that distiller’s retail sales are subject to the 15% privilege tax. The legislature clarified that aged whiskey barrels are not subject to property taxes, also overturning a Tennessee Attorney General opinion to the contrary.  P.C. 717 expands storage options for distilleries, allowing distilleries to store in adjacent counties, as well as any county that is authorized manufacturing. P.C. 650 allows manufacturing in Lenoir City.

Premier Type Tourist Resorts.  The following premier type tourist resorts were approved, allowing on-premises consumption of alcoholic beverages:

Pine Creek Golf Course in Wilson County Capitol Theatre in Greeneville Gaylord Springs Golf Links in Nashville Whitestone Country Inn in Kingston National Museum of African American Music in Nashville (Opening 2019) The Church @ 117 in Coffee County Drafts and Watercrafts in Franklin County The Caverns in Grundy County South Jackson Civic Center in Tullahoma Tellico Village in Loudon County Wildwood Resort & Marina in Granville 1892 Restaurant in Williamson County Leipers Fork Market in Williamson County Marblegate Farms in Blount County Blue Mountain Mist Country Inn & Spa in Sevier County Amis Mill Eatery in Hawkins County Shelly Belle’s in Claiborne County Oasis Pizza Bar in Claiborne County

Special credit goes to our summer associate and UT law student James Nelson for all his hard work on this project.

Click here to learn more about Waller's alcoholic beverage team.

Continue reading
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Duncan Liquor Law - July 2018

Duncan Liquor Law Letter - July 2018

Read Duncan Liquor Law Letter

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Western Pennsylvania Lamb Cook-Off and Festival

We’re sponsoring the Western Pennsylvania Lamb Cook-Off and Festival on July 22 outside of Ace Hotel Pittsburgh in East Liberty. We couldn’t be more excited to watch 36(!) of our favorite chefs and restaurant throw down in this event, presented by Table Magazine. Tickets are going fast! Learn more and join us: http://www.tablemagazine.com/table_live_posts/western-pa-lamb-cook-off-2018/

The post Western Pennsylvania Lamb Cook-Off and Festival appeared first on Flaherty & O'Hara.

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The biggest problem with Tennessee's new vertical under-21 license

Back

Category: underage drinking, driver's license, under-21

07.10.18

With much media fanfare, Tennessee introduced a new silver bullet for carding – a vertical driver’s license that is mandatory for anyone under the age of 21. Problem is, the vertical driver’s license does not automatically expire when the driver turns 21.

In our humble opinion, flipping the orientation of the license dodges the real problem. Too many people with under-21 driver’s licenses are old enough to drink. The question has to be asked: why have an under-21 driver’s license if it can legally be used to purchase alcohol?

The Good News

Effective July 1, 2018, every person under the age of 21 that obtains a driver’s license will be issued a vertical ID: 

Image title

A copy of a sample vertical driver’s license is attached Vertical Driver License Example.jpg.

A copy of the new law, P.C. 388, is here. vertical license act.pdf

We have to admit that the vertical driver’s license is hard to miss.  It screams at you – “I am under 21.”

We also applaud the state for continuing to include Red Box ID technology, which allows a server or bartender to instantly determine when a person turns 21 by simply reading the date in red under the photo.  We have previously extolled the virtues of Red Box ID, which requires no math. 

The Problem

Just like the previous under-21 driver’s license, the vertical ID is not required to expire when the person turns 21. In the example ID, “Nick Sample” turns 21 on February 11, 2021, but his under-21 driver’s license does not expire until July 2, 2025.

For nearly 3-and-a-half years, Nick Sample will be able to present his under 21 driver’s license and legally be served an alcoholic beverage.

Using Nick’s under-21 ID.

To drink.

How hard would it have been for the state to require that alcohol cannot be served to a person with an under-21 driver’s license, regardless of the expiration date?

This would require Nick Sample to go get a new driver’s license when he turns 21, but that becomes his choice. Nick decides whether he wants to spend eight bucks to get a new driver’s license and be able to drink. If Nick doesn’t want to drink, he can continue to use the under-21 driver’s license to drive his car.

That would be too logical.

All this flipping around of driver’s licenses brings to mind the Diana Ross hit, “Upside Down.”

Upside down

Boy, you turn me

Inside out

And round and round

We thank our Summer Associate extraordinaire James Nelson for cleverly obtaining a copy of the sample driver’s license and his assistance researching this post.

Original author: William T. Cheek III
Continue reading
  9684 Hits
Tags:

The biggest problem with Tennessee's new vertical under-21 license

blog

The biggest problem with Tennessee's new vertical under-21 license

Jul 10, 2018

With much media fanfare, Tennessee introduced a new silver bullet for carding – a vertical driver’s license that is mandatory for anyone under the age of 21. Problem is, the vertical driver’s license does not automatically expire when the driver turns 21.

In our humble opinion, flipping the orientation of the license dodges the real problem. Too many people with under-21 driver’s licenses are old enough to drink. The question has to be asked: why have an under-21 driver’s license if it can legally be used to purchase alcohol?

The Good News

Effective July 1, 2018, every person under the age of 21 that obtains a driver’s license will be issued a vertical ID: 

Image title

A copy of a sample vertical driver’s license is attached Vertical Driver License Example.jpg.

A copy of the new law, P.C. 388, is here. vertical license act.pdf

We have to admit that the vertical driver’s license is hard to miss.  It screams at you – “I am under 21.”

We also applaud the state for continuing to include Red Box ID technology, which allows a server or bartender to instantly determine when a person turns 21 by simply reading the date in red under the photo.  We have previously extolled the virtues of Red Box ID, which requires no math. 

The Problem

Just like the previous under-21 driver’s license, the vertical ID is not required to expire when the person turns 21. In the example ID, “Nick Sample” turns 21 on February 11, 2021, but his under-21 driver’s license does not expire until July 2, 2025.

For nearly 3-and-a-half years, Nick Sample will be able to present his under 21 driver’s license and legally be served an alcoholic beverage.

Using Nick’s under-21 ID.

To drink.

How hard would it have been for the state to require that alcohol cannot be served to a person with an under-21 driver’s license, regardless of the expiration date?

This would require Nick Sample to go get a new driver’s license when he turns 21, but that becomes his choice. Nick decides whether he wants to spend eight bucks to get a new driver’s license and be able to drink. If Nick doesn’t want to drink, he can continue to use the under-21 driver’s license to drive his car.

That would be too logical.

All this flipping around of driver’s licenses brings to mind the Diana Ross hit, “Upside Down.”

Upside down

Boy, you turn me

Inside out

And round and round

We thank our Summer Associate extraordinaire James Nelson for cleverly obtaining a copy of the sample driver’s license and his assistance researching this post.

Click here to learn more about Waller's alcoholic beverage team.

Continue reading
  0 Hits

The biggest problem with Tennessee's new vertical under-21 license

Back

Category: underage drinking, driver's license, under-21

07.10.18

With much media fanfare, Tennessee introduced a new silver bullet for carding – a vertical driver’s license that is mandatory for anyone under the age of 21. Problem is, the vertical driver’s license does not automatically expire when the driver turns 21.

In our humble opinion, flipping the orientation of the license dodges the real problem. Too many people with under-21 driver’s licenses are old enough to drink. The question has to be asked: why have an under-21 driver’s license if it can legally be used to purchase alcohol?

The Good News

Effective July 1, 2018, every person under the age of 21 that obtains a driver’s license will be issued a vertical ID: 

Image title

A copy of a sample vertical driver’s license is attached Vertical Driver License Example.jpg.

A copy of the new law, P.C. 388, is here. vertical license act.pdf

We have to admit that the vertical driver’s license is hard to miss.  It screams at you – “I am under 21.”

We also applaud the state for continuing to include Red Box ID technology, which allows a server or bartender to instantly determine when a person turns 21 by simply reading the date in red under the photo.  We have previously extolled the virtues of Red Box ID, which requires no math. 

The Problem

Just like the previous under-21 driver’s license, the vertical ID is not required to expire when the person turns 21. In the example ID, “Nick Sample” turns 21 on February 11, 2021, but his under-21 driver’s license does not expire until July 2, 2025.

For nearly 3-and-a-half years, Nick Sample will be able to present his under 21 driver’s license and legally be served an alcoholic beverage.

Using Nick’s under-21 ID.

To drink.

How hard would it have been for the state to require that alcohol cannot be served to a person with an under-21 driver’s license, regardless of the expiration date?

This would require Nick Sample to go get a new driver’s license when he turns 21, but that becomes his choice. Nick decides whether he wants to spend eight bucks to get a new driver’s license and be able to drink. If Nick doesn’t want to drink, he can continue to use the under-21 driver’s license to drive his car.

That would be too logical.

All this flipping around of driver’s licenses brings to mind the Diana Ross hit, “Upside Down.”

Upside down

Boy, you turn me

Inside out

And round and round

We thank our Summer Associate extraordinaire James Nelson for cleverly obtaining a copy of the sample driver’s license and his assistance researching this post.

Click here to learn more about Waller's alcoholic beverage team.

Continue reading
  1446 Hits

Can I buy alcohol on Labor Day in Tennessee?

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Category: beer, wine, wine in grocery stores

06.29.18

Can I buy beer, wine and spirits on Memorial Day, July 4 and Labor Day?

Fall is upon us and we hear that burning question: Can I buy alcohol on holidays at Tennessee liquor and grocery stores? Yes and no.

Here are the facts. The law recently changed to allow liquor and grocery stores to sell beer, wine and spirits on many federal holidays, including:

New Year’s Day Memorial Day July 4 Labor Day

No more stocking up on Friday and Saturday before a big holiday weekend. You can buy your wine and spirits on both Sunday and Monday.

Alcohol still cannot be sold on Easter, Thanksgiving and Christmas. You are supposed to be at church or at home with family, not boozing it up.

To make things more confusing, grocery stores cannot sell wine on Sundays until next year, beginning January 6, 2019.

Holiday hours for wine at liquor and grocery stores are 8 a.m. until 11 p.m., except Sundays, when stores cannot open until 10 a.m. Keep in mind that hours for beer sales vary from city to city, with many selling beer starting at 6 a.m.

Surf’s up and Madonna’s smash summer song “Holiday” from 1983 comes to mind:

Everybody spread the word

We're gonna have a celebration

All across the world

In every nation


Click here to learn more about Waller's alcoholic beverage team.

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Can I Sell Sake in My Grocery Store in Tennessee?

Can I bring my own wine into a restaurant in Tennessee?

Tennessee Sunday alcohol sales: What you need to know

New Tennessee open carry law is gamechanger for many restaurants, hotels

Restaurants and hotels get the green light to give away alcohol

Original author: William T. Cheek III
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Can I buy alcohol on July 4 in Tennessee?

Back

Category: beer, wine, wine in grocery stores

06.29.18

Can I buy beer, wine and spirits on Memorial Day, July 4 and Labor Day?

Summer is upon us and we hear that burning question: Can I buy alcohol on holidays at Tennessee liquor and grocery stores? Yes and no.

Here are the facts. The law recently changed to allow liquor and grocery stores to sell beer, wine and spirits on many federal holidays, including:

New Year’s Day Memorial Day July 4 Labor Day

No more stocking up on Friday and Saturday before a big summer holiday weekend, like this upcoming Memorial Day. You can buy your wine and spirits on both Sunday and Monday.

Alcohol still cannot be sold on Easter, Thanksgiving and Christmas. You are supposed to be at church or at home with family, not boozing it up.

To make things more confusing, grocery stores cannot sell wine on Sundays until next year, beginning January 6, 2019.

Holiday hours for wine at liquor and grocery stores are 8 am until 11 pm, except Sundays, when stores cannot open until 10 am. Keep in mind that hours for beer sales vary from city to city, with many selling beer starting at 6 am.

Surf’s up and Madonna’s smash summer song “Holiday” from 1983 comes to mind:

Everybody spread the word

We're gonna have a celebration

All across the world

In every nation


Click here to learn more about Waller's alcoholic beverage team.

Subscribe Now!

Can I Sell Sake in My Grocery Store in Tennessee?

Can I bring my own wine into a restaurant in Tennessee?

Tennessee Sunday alcohol sales: What you need to know

New Tennessee open carry law is gamechanger for many restaurants, hotels

Restaurants and hotels get the green light to give away alcohol

Original author: William T. Cheek III
Continue reading
  3571 Hits
Tags: