Chattanooga Closing a Bad Church Nightclub?

Tennessee club owners have felt the pressure from local officials looking to shutter their business for being a nuisance because of violent patrons outside the club.

Ironically, Chattanooga officials are looking to close a church teen outreach program - with the same nusinance laws used against clubs. Read more here.

Recently in Nashville, Bar Louie was shuttered by the local DA for violence in a public parking lot. A Chancery Court overturned the closing, but the publicity about shootings and the financial blow from being closed were fatal and the bar went out of business.

The Chattanooga church has a teen outreach program called Club Fathom. One of the missions is to support teenage gang members quitting gangs. Unfortunately, quitting gangland is not like joining a ten step program. Gang members that resign are often punished, and in gangland, being killed is a common punishment.

Like many of the club cases, Fathom's problems mostly occurred outside the business. It will be interesting to see how the city fares against a church outreach program with problems in areas around the club. Stay tuned.

Ironically, Chattanooga beer laws prohibit beer permits from being issued within 500 feet of teen social clubs.

Monkeying with Nashville Distance Law?

Tennessean columnist Gail Kerr had some strong arguments to overturn Metro Nashville's longstanding prohibition on beer being sold within 100 feet of a house, school, park or church. Read her story here.

Problem is, the existing opt out from the 100 foot rule works. Kerr cites 6 businesses that have been exempted by the rule - saying that they have not been problems for the neighboring churches or homes. This is proof that the current Metro opt out law works. Metro should not completely eliminate the 100 foot distance rule.
Distance ordinances are not a perfect solution. The 100 foot distance rule sets a firm but arbitrary boundary for restaurants and bars to operate near protected places like churches and homes. No one wants a noisy tavern to open 25 feet away from their house.
The exception from the 100 foot rule is crafted to require owners of potential bars and restaurants to meet with neighbors, much like the owners of Puckett's met with Kerr's church. The law requires support from the council member that represents the area around the business. It requires a public hearing.
Based on experience with the restaurants that have obtained beer permits under the opt out law, council members asked neighbors to weigh in on the process. Businesses understood that if they wanted to locate near a house or church, they needed to be responsible and present a business plan that complimented being in a residential neighborhood.
For example, I love Broadway Brewhouse in Midtown Nashville. But I would never want to live next door. Its a fun happening place that is not a good neighbor for a residential neighborhood.
The 100 foot is an odd remnant from the past. But with the council opt out law, it works and should not be abandoned.

Tennessee Distillers Fork Over New License Fee

The Tennessee Department of Revenue is collecting a $1,000 license fee that for years - or perhaps decades - was not imposed. We understand that an application for this license is being prepared and will soon be added to the extensive list of licenses required of distillers.

The Revenue license is a remnant of the colorful past of Tennessee's liquor industry. After the repeal of Prohibition in 1937, Jack Daniels and George Dickel operated under licenses issued by Revenue. The Alcoholic Beverage Commission was not created until 1963.

We thought that the Revenue license was replaced by the ABC manufacturer's license - and apparently, for quite some time, Revenue agreed.

In the past few weeks, we have heard from several distillers that Revenue has asked for the $1,000 license fee, payable under the 1937 law. One source at Revenue indicated that an application is being drafted for the license. Revenue is taking the position that the $1,000 fee is due every year.

We will update when information about the new application is available.

Hail to the New Chief at Nashville Beer Board

Anne Arney was elected Chair and Brian Taylor Vice Chair at tonight's (November 16) Metro Nashville Beer Board Meeting. Both have served one term on the board, with 4 of 7 spots being newly appointed.

Chair Arney lead a spirited agenda and appeared to adopt many of the procedural traditions established by her predecessors. Ms. Arney is an attorney at Nashville law firm Bone McAllester Norton and specializes in representing doctors and other health care providers.

Changes at Metro Nashville Beer Board

Today's Metro Nashville Beer Board Meeting presented lots of new faces. Mayor Dean appointed 4 new board members to the 7 member Board. Among the departed members was former chair Joy Sims.

With Anne Arney filling the position of interim chair, the change was profound to beer board regulars. Gone were perennial members Tamara Hart, Gary Larkins and Joy Sims. Their years of experience will be missed.

Meet the new members:

James Collier, attorney with a general practice
Anton Jackson, attorney at the Metro District Attorney's office, which prosecutes crimes
Brad Northcut, architect and President of 12South Neighborhood and District
Shannon Romain, attorney practicing divorce and family law

We understand that the new chair will be elected at the November 16 meeting.

We were pleased to see the new Board take up and correct an unintended consequence of the recently adopted catering rule. The new rule allows wholesalers to deliver beer to catered premises. Some had read the prior rule as requiring wholesalers to drop beer off only at the caterer's main business. For large events, caterers would have been required to transport scores of kegs from their stores to catered locations. This was a common sense fix and we appreciate the prompt action by the Board.

Metro Nashville Beer Board: Back to the Future

We hear it all the time. When you ask a state or city official why something is done a particular way, you often hear: "Because it's always been done that way."

Eons ago, someone devised a form beer application that is used by lots of beer boards, including, until recently, the Metro Nashville Beer Board. We have found that the form is a model for creating confusion for business owners.

Abandoning more than two decades of tradition, the Metro Beer Board recently approved a new simplified form for beer applications. It is available as a writable PDF.

Mayor Karl Dean has filled a number of beer board appointments with members of the local business community. Dean appointee Brian Taylor comments: "Nashville is a business friendly city and although there are laws that are antiquated and that the Beer Board cannot itself change, the Metro Beer Board is making strides toward simplifying the process for those restaurants and bars looking to open in Nashville. The new application is a big step forward."

We applaud the board for making the beer application process more friendly to business owners.

Modernizing Liquor Laws Often Elusive

The recent failure of an attempt to increase the number of liquor stores in Clarksville - from a limit set in 1963 - shows that the unholy alliance of liquor and religion is alive and well. Clarksville liquor store owners and local pastors opposed the increase, and it failed in the city council.

Clarksville Council Rep Deanna McLaughlin proposed the increase after two soldiers, looking to open a store, were told that no licenses were available. The 12 store rule was set back in 1963, when Clarksville had under 35,000 residents. Now the city has grown to over 130,000, but the number of liquor stores has remained the same because of the local store limit.

Clarksville liquor store owners understandably opposed the increase, because the antiquated limit increased the value of their stores. Pastors cited public safety concerns over increased access to alcohol.

Although local officials initially voiced no public safety concerns, the proposed increase died by a 9-3 vote at an October council meeting.

The defeat is a reminder that change is not easy with liquor laws.                             

Nashville Beer Board Targets Rogue Caterers

Its been pretty easy over the past couple of years to find someone to provide beer service for Nashville businesses that cannot get a beer permit, for whatever reason. Some folks with beer catering permits have regularly allowed other businesses to use their catering permit when the business failed to apply for a beer permit on time or had some other issue that left the bar high and dry. This "service" was usually offered for a hefty fee.

A few folks really abused the catering permit by "catering" beer to nightclubs that did not qualify for beer.

On October 13, 2011, the Beer Board adopted a rule aimed at eliminating the practice. We hear that the beer inspectors have been out enforcing the new rule.

The beer catering law was intended to be a compliment to the ABC catering permit for wine and spirits. Before Metro adopted the law, caterers were left to play fast and loose with the law and provide beer service, despite the lack of any means to legally sell beer at catered events. Most towns have not even addressed the issue and have not specifically legalized beer catering.

We applaud the Metro Beer Board for tackling this issue. The catering law was intended to allow restaurants to provide adult beverages with food when catering. It was never intended as a way around regular licensing.

Tennessee Guns in Bars Advocate Makes Big Oops

Guns in bars advocate Tennessee State Representative Curry Todd was arrested late last night (October 11, 2011) in Nashville for DUI and possession of a gun while intoxicated. The Tennessean has details about the arrest, and Tom Humphrey has insightful political commentary.

Representative Todd has been an effective advocate for a number of conservative causes and is known for being a Republican leader. The arrest will certainly challenge Representative Todd's credibility as a conservative crusader for mixing gun rights with alcohol.

Although national media has picked up the story, we do not see Rep. Curry's personal issue affecting current Tennessee gun laws.

There's a New Kid in Town: Tennessee Liquor by the Drink Has New Chief

Keith Bell accepted an appointment by the Tennessee ABC to serve as Assistant Director, at yesterday's ABC meeting. We hear he starts Monday October 3.

The Assistant Director has historically been in charge of restaurants, hotels and other on-premise LBD licensees. We expect Mr. Bell will assume the role of LBD chief from TABC Director Danielle Elks, who has been filing in for Caroline Smith for nearly a year after her resignation.

Mr. Bell will have to become indoctrinated in the byzantine laws and unwritten customs that are all too familiar to industry insiders.

Mr. Bell most recently comes from a real estate title company in Hendersonville. He is a 1982 grad of the University of Tennessee law school.

In other LBD news, reliable sources report that Nashville ABC front desk staffer Melissa is being trained to take over LBD renewals for Grace, whose last day is this Friday. Melissa will be sorely missed at the front desk, but we wish her well with handling the huge volume of renewals.

Stay tuned for more.

Purgatory for Tennessee Liquor License Renewals?

Renewing restaurant, hotel and liquor-by-the-drink licenses in Tennessee has never been painless. Busy staff regularly forget to pass along the renewal paperwork to corporate. Even after filing, renewals are often delayed - and citations issued - because Revenue shows taxes due or reports LBD bond issues. Exacerbating the frustration, Revenue records frequently show taxes owed, when in fact, no taxes are due.

Hold on to your seats. Things are poised to get worse.

Longtime Nashville Tennessee ABC renewal staffer Grace Buchanan is leaving for a new gig at Vanderbilt this Friday.

Tennessee LDB staff have been stretched thin for nearly a year. ABC Director Danielle Elks has been covering for two vacant staff attorney positions. The ABC handles thousands of LBD licensees, without the benefit of modern computer systems.

To make matters worse, Tracey Richards at Revenue, who gives tax clearance and manages bonds, has been promoted and transferred, leaving her colleague, Rondle John, and supervisor Martha Potter to handle LBD tax clearance and bonds for the entire state. Their job is complicated by ancient technology that often shows incorrect tax data, for no apparent reason.

We hear that there are no plans to replace either Grace at the ABC or Tracey at Revenue. Despite both positions being critical to a large source of tax revenue (LBD pays up to 24.75% tax on sales), the state hiring freeze may mean the positions remain vacant indefintely.

Renewals could be considerably more complicated for some time. Welcome to Hades.

Wine in Tennessee Groceries: Worthy Progeny of the Whiskey Rebellion

Controversy surrounding alcoholic beverages is not a new phenomenon. Tennessee is currently torn by the debate over wine in grocery stores. But alcohol has divided Americans politically since our nation was born, often causing unusual alliances like the coalition of conservative church groups, liquor wholesalers and liquor store owners that currently oppose wine in grocery stores in Tennessee.

The Whiskey Rebellion is a fascinating nugget from the colorful history of alcohol, worthy of reflection.

The Whiskey Tax was the very first federal internal revenue tax, levied in 1791 to help pay for revolutionary war debt. The tax divided large and small distillers, by taxing smaller distillers at about twice the rate as large distillers.

The tax also pitted more-established Eastern towns, home to larger distillers, against frontier areas with small distilleries, where distilling crops to whiskey was one of the few ways to make money to purchase essential goods. Hauling whiskey by wagon on mud roads over the Appalachian Mountains was a much easier way for farmers to make money than trying to haul corn or other crops.

The tax - and unfairness of the tax for small distilleries in the frontier - fueled discontent about the lack of federal support for basic frontier needs, like troops to protect frontier towns from Native American attacks. Federal revenue agents were tarred and feathered, and eventually, frontier folks rose in arms in Western Pennsylvania.

The dispute ultimately lead President Washington to become the only sitting President to command troops in battle. The insurrection was quashed and the federal government's ability to tax was firmly established. The tax also established the government's ability to require every distillery to register.

The TTB has a great article about the rebellion here.

No Krogering for Beer in Memphis?

A few days ago according to a reliable source, Memphis police visited a Kroger store and told the store to stop selling beer because some of the employees did not have Memphis employee cards. Memphis police were reported as advising Kroger that beer sales should be halted in any Memphis store where employees lacked the Memphis employee card.

We blogged about the card last month. Every employee that touches beer in Memphis must have a card, unless they have an ABC server permit card. The card costs $50 and requires a TBI background check.

We wondered if Memphis police would enforce the requirement. The Kroger raid shows that Memphis is serious.

The raid has drawn attention from several large retail chains concerned about compliance with the law. Reliable sources report that the Mayor of Memphis unofficially asked the police chief to stop enforcing the law for the next 30 days, presumably to allow retailers time to come into compliance.

Several industry members are using the unofficial moratorium to advocate against the law, hoping to repeal or simplify the employee registration requirement. We see the law as an expensive and burdensome requirement that does little to prevent sales to minors, or promote other legitimate regulatory concerns.

The employee card requirement also appears to exceed the city's power to regulate beer, making it illegal.

We encourage retailers and Memphis wholesalers to speak up quickly to help bring balance to the debate.

Grocers and C Stores Pay the Piper in Memphis

Memphis has always had its share of odd liquor rules. A recent change in the law is different, because it makes doing business in Memphis much more cumbersome and expensive.

For some time, Memphis required beer permit holders to register all employees that touch beer. This mostly affects grocers, drug stores and convenience stores, requiring every sales clerk and stocker to go downtown and obtain the permit. The rule does not apply to restaurants and other businesses with liquor licenses.

We suspect that lots of businesses were clueless and did not comply. Although a pain, however, compliance only involved a $10 fee per employee.
Will Cheek's Blog

Beginning July 1, the fee jumped to $50 per employee: $29 for a TBI background check and $21 for an affidavit. For most C stores, drug stores and small groceries, this means every employee must have the $50 card.

Memphis is telling new applicants about the new employee card rule. It remains to be seen how closely the rule is enforced with existing permit holders.

The good news is that the card follows the employee, meaning that it is valid if an employee moves between stores or is hired from a competitor. The card must be renewed every 2 years.

We see this as being quite an expensive requirement for most retailers, from Wal-Mart to mom and pop stores. Given the turnover among clerks, compliance could be costly and difficult.

The big question is how closely Memphis enforces the new law. The Memphis Alcohol Commission does not have enforcement officers and must rely on police or other city officials to enforce the beer laws. It is possible that the new law will be largely ignored without consequence.                             

New Rules for Tastings at Tennessee Liquor Stores

Toward the end of this year's legislative session, retail tastings were legalized for Tennessee package stores. The change surprised many and the law was also wide open about what retail stores could do at tastings. Read more about the law here.

ABC Regs for retail store tastings were inevitable. The ABC was proactive and held its first meeting with industry members last week, on August 17, 2011.

Many legal issues were discussed, including whether store employees had to hold server permits or complete LBD server training, could food be served, and were there limitations on how often and how long tastings could be offered. Retailers want clarification that they may have glassware, ice and mixers to be able to conduct tastings.

One store owner acknowledged the problem with leaving bottles out front for customers to taste at any time of the day, but wanted to be able to allow a potential purchaser of high end scotch to try the product without any time limitation. This issue may be one of the hardest to resolve.

The meeting identified a number of practical issues with retail store tastings, as well as one important political position. When food service was raised as part of tastings, wholesale representatives pointed to wine in grocery stores as a reason not to allow liquor stores to pair food with wine at tastings. This would allow grocers to say that liquor stores can pair wine with food, and why shouldn't we?

The tastings law prohibits wholesale participation in retail tastings, and the wholesaler representatives at the meeting expressed no interest in helping wineries and distilleries to pass free product to retailers for tastings.

This is a huge limitation - retailers have to purchase all product given away at tastings at the wholesale price.

The next step is a draft of regulations from the ABC and a second opportunity for industry to weigh in. We encourage interested retailers to follow this process closely. Tastings are a tremendous opportunity for stores that market to consumers.

Breweries of Tennessee Unite!

The recently passed law legitimizing high alc beer has another happy ending. A Tennessee Craft Brewers trade association. 18 breweries from across the state gathered and unanimously voted to form a guild at an organizational meeting in Nashville on July 16.

A bit of history. This spring, a high alc beer bill was hijacked in the legislature by powerful forces that sought to limit brewing high alc beer to a single brewery that was looking to locate a large brewery in Tennessee. Local Tennessee craft brewers started coming out of the woodworks, and when the dust settled, the high alc beer law applied to all Tennessee breweries. Read more on the high alc beer law here.

A lot of the credit goes to the one selected brewery, which made it clear that it would not come to Tennessee unless all breweries in Tennessee could brew and taste high alc beer in their taprooms.

Credit also goes to Linus Hall of Yazoo and several smaller craft breweries that quickly called legislators to help ensure the right of all Tennessee breweries to brew high alc beer.

The legislative fight brought Tennessee craft breweries together, perhaps for the first time on a state-wide scale. Folks discovered that the state has over 30 breweries operating or in the process of opening. Here is one list, which we know does not include a handful of our clients looking to open breweries, and undoubtedly there are others opening breweries. Brewing in Tennessee is poised to flourish.

Adam Palmer of Knoxville’s Marble City Brewing Company was quoted as saying: “The formation of the Tennessee Craft Brewers Guild is exciting for a few reasons. There is a reason there aren’t more breweries in this state and it is in large part due to the restrictive laws. Setting up a unified and organized guild will help give the breweries a stronger voice when it comes time for writing or re-writing legislation as it pertains to beer laws. The guild will also be used to promote craft beer in the state of Tennessee through discussion boards, seminars, festivals, and other special events.”

We also see the association as an excellent marketing opportunity. The success of Kentucky's Bourbon Trail shows that organized marketing can draw more tourists to several competing distilleries. For example, beer aficionados visiting Nashville could sample beers from several local craft taprooms, with proper marketing from the Tennessee Craft Brewers Guild.

The future is bright for Tennessee Craft Breweries.

Miller Time Out?

You never know what will happen when you file your renewal at the 11th hour. MillerCoors just learned the hard way. The beer giant has been asked to pull all 39 brands of beer off the shelves in the entire State of Minnesota. All because their brand registration renewals did not get processed before state government was shut down over a budget dispute.

According to early media reports, MillerCoors' check for renewal of the 39 brands was delivered to the state liquor control days before the registrations were set to terminate. But they overpaid, and had to submit a new check.

Normally, no big deal. Unless the government shuts down before you deliver your check.

Minnesotans love their suds and the hot summer months are huge for the beer business. If the state follows through on its order to remove product, restaurants, bars, grocery stores and even the Minnesota Twins will be out of Coors, Miller Lite, Blue Moon and 36 other MillerCoors brands.

We've said it before - we'll say it again. Renew your licenses on time.

Pay the Tax Man Or Go Straight To Jail

Liquor-by-the-drink licensees feel the double whammy pain of 15% liquor taxes and 9%+ sales taxes every month when taxes come due. For some, the temptation not to honestly report sales is tempting.

Recent Tennessee Department of Revenue activity is a reminder that paying taxes is a priority. Failure to pay the tax man is a crime.

Anthony Campbell, owner of Tony’s Bar & Grill in Memphis, Tennessee, learned the hard way. Campbell was sentenced to one count of Sales Tax Fraud, a Class E felony, and one count of Theft of Property Over $10,000, a Class C felony. Campbell was placed on five years of probation and was ordered to pay full restitution to the Tennessee Department of Revenue in the amount of $15,860.19.

This disqualifies Campbell from owning or working in the liquor industry.

Likewise William (Curtis) Givens, Jr., an employee of Silver Spoon Restaurant & Lounge in Memphis pled guilty to one count of falsifying tax returns, a Class E felony, and one count of Theft of Property Over $10,000, a Class C felony. Givens was ordered to pay $37,517.86 and faces 5 years in jail if he fails to follow his sentence, which includes educating business owners about the consequences of violating state sales tax laws.

Don't mess with the tax man.

NCSLA Liquor Conference Vegas Style

Last week, the National Conference of State Liquor Administrators seized the Wynn Encore Hotel in Vegas for the 2011 Annual Conference. Tennessee made waves on a number of fronts.

TABC Director Danielle Elks served as President of NCSLA and also chaired the host committee that planned the program and social agenda. Here is Director Elks at the podium on closing night with a Charlie Daniels autographed violin auctioned for the benefit of NCSLA.



We served on the NCSLA planning committee and worked with a small talented group that created a stellar program. Great American Success Stories featured Jim Koch,  founder of Boston Beer, Richard Sands, CEO of Constellation Brands and John McDonnel of Patrón Spirits.  Jim poured a Sam Adams for his speech and was a personal favorite.



Tennessee's retail package store tasting law was too new to make the program, but was a popular topic at the hospitality lounge.  We are not sure if retail tastings, or the lack of rules governing tastings, created the interest, but industry members - and regulators - were definitely inquiring.

Last but not least, we moderated a panel on growlers and wine kegs. Featuring Master Brewer Kevin Reed of CraftWorks Restaurants & Breweries and growler compliance expert Alex Heckathorn, we covered cutting edge issues presented by the popular demand for growlers.



Check out photos from the conference.

Tennessee Governor Haslam Signs High Alc Brewery and Retail Liquor Store Tastings Law

Governor Haslam has signed the high alc brewery and retail liquor store bill into law. It is official. As of Friday June 10, 2011, brewing high alc beer is truly legit in Tennessee, and retail stores can offer tastings at the store. Huge changes to Tennessee law.

Read more about high alc beer brewing.

Read more about retail store tastings.

Coyote Ugly Vindicated: Coyotes Approved to Advertise at Nashville CMA Fest

CMA Fest fans swarmed downtown Nashville much like the cicadas in May. Unlike the red-eyed bugs, CMA festival goers are looking to spend money, and competition among downtown Nashville bars is intense.

This Thursday, the first big day of the fest, Coyote Ugly Coyotes were asked to stop promoting the Saloon to festival goers on lower Broad. Police were polite but firm: no handouts in the main festival area on lower Broad.

Coyote Ugly contacted us Thursday afternoon to see if there was a way to legally advertise to the thousands of festival goers on lower Broad. Based on fliers distributed earlier in the day, scores of fans were taking advantage of the promotions handed out by Coyotes.

Metro police responded well. Police allowed Coyotes to hand out leaflets Thursday night and Friday, while Metro considered the legal issues.

Late Friday afternoon, Police Chief Anderson sent advice to Metro Police. Handing out leaflets is ok. Selling on the streets without a license is not.

Vindicated, the Coyotes are braving the heat and crowds to drum up business at the Fest. We appreciate Metro's attention to this issue and thank Police Chief Anderson, Metro Law Director Sue Cain and their staff.

Brew Baby Brew

Tennessee is poised to "legalize" brewing of high alcohol content beer. Much to the surprise of Tennessee beer brewers, a bill before the state legislature earlier this year would have outlawed brewing high alcohol beer for most breweries.

Like many of its liquor laws, Tennessee has an odd rule about beer. Regular beer is beer that has an alcoholic content of 5% or less by weight. Don't confuse this with the alcoholic content by volume, which can push the measurement to nearly 7%.

In Tennessee, any beer over 5% by weight is an alcoholic beverage, taxed at a higher rate, sold through liquor distributors and not available for sale at groceries and convenience stores. Called high alc beer by many in the industry, high alc beer can only be purchased at package stores and at restaurants and bars, after payment of additional taxes that push the price up considerably.

In most states, and at the federal level, there is no distinction between high alc and regular beer. Both are treated and taxed the same.

The Scoop.

We represented a city that was trying to recruit a brewery to locate in Tennessee. We wanted to clarify that brewing high alc beer was legal. Most folks thought it was, and Nashville brewery Yazoo had a permit and was brewing a high alc beer called "Sue." But the law was not entirely clear. The law allowed manufacturers to "distill," but not brew alcohol, and high alc beer was not listed among the products that were defined as alcoholic beverages under state law.

Some important folks thought differently about the legality of brewing high alc beer, and a squabble ensued. After the dust settled, a bill was passed that allows breweries to obtain a special license to brew high alc beer, as well as some other privileges. We expect the governor will sign the bill into law soon.

Lipman Brothers Picks Up Blockbuster Brands

Nashville liquor wholesaler Lipman Brothers is poised to become the largest single liquor wholesaler in the State of Tennessee. Starting August 1, 2011, Lipman will acquire all of the brands of Tennessee Wine & Spirits, including Crown Royal, Smirnoff, Jägermeister, Evan Williams, Seagram's 7 Crown and Grey Goose. These will join Jack Daniels, Bacardi, José Cuervo and Tanqueray Gin at Lipman.

Lipman will begin consolidating operations on August 1 and expects to have all the inventory shipping from Lipman within two weeks.

The Tennessee Alcoholic Beverage Commission approved the transaction yesterday at its regular meeting on May 25, 2011.

Foreign Passport Proof of 21 Age for Booze?

Chipotle Mexican Grill is at the center of a brewing debate about the validity of foreign passports as proof of age for beer and liquor sales. Having recently been hammered in the press over employment of illegal Mexican immigrants, the Mexican-themed chain has stepped into another briar patch.

According to news reports. Laurencio Valadez, a Mexican national, said a Chipotle store manager rejected his Mexican passport as proof of his identity and age, saying several times that only a U.S. passport would be acceptable, according to a legal complaint filed against the company.

"My client felt particularly humiliated being a Mexican, at a self-advertised Mexican grill, who was denied service,' Bruce Nestor, a lawyer for Valadez, now 39, said in an interview.

We understand the difficulty of monitoring the validity of 50 different state driver's licenses as proof of age. Requiring that passports from other countries be accepted makes the job significantly harder.

We will watch this case, as it may impose a duty to accept foreign passports as proof of age.

For now, we encourage licensees to use common sense. If a customer presents a foreign passport and appears to be 21 or younger, try to obtain another age ID or refuse service. If the customer with the foreign passport appears to be older, like the 39 year old Mexican plaintiff, let him belly up to the bar.

Federal Calorie Labeling Not to Include Booze?

The FDA says that the impending mandatory calorie labeling requirement will not apply to alcoholic beverages. Plans are to require all restaurants with 20 or more locations to post calorie counts on menus and menu boards in 2012.

According to the Wall Street Journal, “the new regulations will mean that the calorie counts of everything from a Chipotle burrito to a Starbucks Frappuccino must be posted in a font size that is ‘clear and conspicuous’ and color that's ‘at least as conspicuous as’ the print listing the menu item, according to the agency's guidance.”

But booze seems to be the exception, despite claims that alcohol is a big source of empty calorie consumption among Americans.

Smaller chains and independent restaurants should follow the menu labeling debate, as many observers believe the rules may eventually be expanded to include all food purveyors.

Regime Change at the Tennessee Alcoholic Beverage Commission

John Jones has chaired the Tennessee ABC for longer than we recall. Long before Al Gore invented the Internet and direct shipment of wine. Through at least three gubernatorial administrations.

At the conclusion of April's regular ABC meeting, Commissioner Jones announced that he was stepping down as chair. He mentioned his faltering eyesight, but gave no firm reason.

The resignation appeared to have been planned. After Commissioner Jones spoke, Commissioner Bryan Kaegi nominated Commissioner Mary McDaniel as Chair. Jones promptly seconded and closed the matter for a vote. Commissioner McDaniel's nomination was approved.

Although some might attribute the selection of Commissioner McDaniel as being political, we think not. Republican Governor Haslam could have easily chosen not to reappoint Commissioner Jones, who has long ties to both the state Democratic party and the Tennessee ABC. The ABC is a three member Commission that has not been traditionally dominated by the Chair, and has been blissfully free of partisan politics.

In other ABC news, ABC Commission meeting dates have been changed to the fourth Wednesday of each month, beginning in July. June's meeting will be held on the third Wednesday, because ABC Director Danielle Elks will preside as president at the annual meeting of the National Conference of State Liquor Administrators, held during the last week in June.

TABC Director Asks: Where Are My Minions?

Staff is pretty lean at the Tennessee ABC headquarters in Nashville. There are numerous high level vacancies. Most recently, Acting Assistant Director Melinda Arrington gave notice that she will be leaving at the end of the month. Former Assistant Director Carolyn Smith departed late last year. Senior ABC agents Mike Cawthon and Al Watson have been forced to retire because of budget constraints. Hiring freezes have left a number of key positions vacant.

The ABC is a thinly staffed agency charged with overseeing several thousand licenses. Director Danielle Elks is now filling the role of three staff attorneys and also leading the agency. ABC agents are sparse. Although licensees do not look forward to stings, ABC agents are vital to conducting inspections necessary for issuance of licenses to new businesses and changes of ownership.

So far, the ABC has done an admirable job of working through this tough time. We hope that help is on the way, as backlogs are certain to build up and morale can easily suffer.

TABC Director Asks: Where Are My Minions?

Staff is pretty lean at the Tennessee ABC headquarters in Nashville. There are numerous high level vacancies. Most recently, Acting Assistant Director Melinda Arrington gave notice that she will be leaving at the end of the month. Former Assistant Director Carolyn Smith departed late last year. Senior ABC agents Mike Cawthon and Al Watson have been forced to retire because of budget constraints. Hiring freezes have left a number of key positions vacant.


The ABC is a thinly staffed agency charged with overseeing several thousand licenses.  Director Danielle Elks is now filling the role of three staff attorneys and also leading the agency. ABC agents are sparse.  Although licensees do not look forward to stings, ABC agents are vital to conducting inspections necessary for issuance of licenses to new businesses and changes of ownership.


So far, the ABC has done an admirable job of working through this tough time. We hope that help is on the way, as backlogs are certain to build up and morale can easily suffer.