The Tennessee Alcoholic Beverage Commission rules govern who can sell, distribute, and produce alcohol in the state, what hours they can operate, what records they must keep, and what happens when they break the law. The TABC issues licenses, sends agents to inspect licensed premises, and can fine businesses or pull their licenses. The core rules sit in Title 57 of the Tennessee Code, though local beer boards handle some city and county permits separately.1Justia. T.C.A. § 57-3-104
What the TABC Can Do
TABC agents are law enforcement officers. They inspect licensed premises, audit financial records, and can make warrantless arrests when they have probable cause to believe someone is committing certain felonies on a licensed property or a property under investigation.2TN.gov. Law Enforcement3Justia. T.C.A. § 57-1-210
The commission also writes the rules it enforces, with authority to adopt, amend, or repeal regulations for the industry.4FindLaw. Tennessee Code § 57-1-1035Justia. T.C.A. § 57-1-209 Beer sold at the local level may fall under city or county beer board jurisdiction rather than direct TABC oversight.1Justia. T.C.A. § 57-3-104
License Types
Retail
Retail licenses cover businesses selling alcohol directly to consumers. Restaurants and other establishments serving liquor by the drink must generally derive more than 50% of gross revenue from meals to qualify as a restaurant for licensing purposes.6Justia. T.C.A. § 57-4-102
Employees who serve alcohol need a server permit, which requires an approved alcohol awareness training program. Applicants must be at least 18.7Justia. T.C.A. § 57-3-704
Wholesale
Wholesalers distribute to retailers. They must operate from a warehouse inside the state, follow strict reporting rules, and are generally barred from offering unfair financial incentives to retailers.
Manufacturer
Distilleries, wineries, and breweries need manufacturer licenses. Distillers pay a $1,000 annual license fee.8FindLaw. Tennessee Code § 57-3-202
Small breweries get a distribution exception. A brewery producing no more than 25,000 barrels of beer per year may be eligible to distribute its own products to retailers, capped at 1,800 barrels going to retailers outside the brewery’s home county.9Justia. T.C.A. § 57-5-101
Applying for a License
Retail license applicants must be at least 21. A felony conviction can disqualify an individual from holding a retail license. Businesses have to submit financial information and disclose owners with a significant interest in the company.10Justia. T.C.A. § 57-3-204
Retail store fees:10Justia. T.C.A. § 57-3-204
- Application fee: $300, one-time and nonrefundable.
- Annual license fee: $850.
Hours and Service Rules
Establishments selling liquor by the drink generally cannot serve between 3:00 a.m. and 8:00 a.m. on weekdays, with additional restrictions on Sunday mornings. Actual hours vary by license category and local rules.11Justia. T.C.A. § 57-4-203
Retail package stores may sell from 8:00 a.m. to 11:00 p.m. Monday through Saturday, and from 10:00 a.m. to 11:00 p.m. on Sunday.12Justia. T.C.A. § 57-3-406
On-premises licensees don’t have to pour every drink into a separate glass. They may sell wine, champagne, or malt beverages in the original container, but the server has to open it before handing it to the customer.13Cornell Law. Tenn. Comp. R. & Regs. 0100-01-.03
Records You Have to Keep
Every licensee must keep purchase orders, invoices, and records of every purchase and sale of alcoholic beverages for at least three years. Those records have to be available to authorized TABC representatives during regular business hours, and failure to produce them is grounds for the commission to revoke a license. Electronic recordkeeping is acceptable as long as records stay readily available and easily accessible to inspectors.14Cornell Law. Tenn. Comp. R. & Regs. 0100-03-.13
Fines, Suspensions, and Appeals
Penalties depend on the license type and the violation. Some retailers face fines up to $1,500 for non-compliance.15FindLaw. Tennessee Code § 57-1-201
If the commission finds an emergency threat to public health, safety, or welfare, it can summarily suspend a license. Even then, the agency has to follow specific procedures to notify the licensee and provide a prompt hearing.16Justia. T.C.A. § 4-5-320
A business facing a penalty has the right to a hearing, typically before an administrative judge or hearing officer who handles swearing in witnesses and ruling on evidence.17Justia. T.C.A. § 4-5-301 If you disagree with the final administrative order, you can file a petition for judicial review in the Tennessee Chancery Court. The petition must be filed within 60 days after the agency enters its final order, or the right to appeal may be lost.18Justia. T.C.A. § 4-5-322