New Kid in Town Lays Down the Law at Tennessee ABC

Things have been changing quite rapidly at the Tennessee Alcoholic Beverage Commission. 1970's Rock Kings the Eagles sum it up well:

Where you been lately? There's a new kid in town 
Everybody loves him, don't they? ...Everybody's talking 'bout the new kid in town.

Keith Bell was named ABC Assistant Director nearly a year ago. Mr. Bell and staff attorney Ginna Winfree are making waves in the Tennessee liquor-by-the-drink licensing world.

Several LBD industry members have seen an uptick in enforcement and the seriousness of penalties imposed by the ABC. The new kid in town appears to be telling the industry that he is going to make a point of cracking down on industry violations.

Keith Bell is laying down the proverbial law.

With ABC Director Danielle Elks expected to resign at the end of October, Mr. Bell is the heir apparent to the ABC throne.

Ms. Elks has served the ABC for over two decades. During Ms. Elks' reign as Director, the playing field has been mostly neutral. Rules and enforcement priorities have been occaisionally tough for industry, but relatively predictable. If you violate the law, you get an expensive fine to make you pay attention. If you fail to do your best to avoid violating the law in the future, you are looking at a suspension or revocation.

The rules have apparently changed.

The TABC has had more than its fair share of relatively high profile negative press in the past few years. Some say the ABC has been drug through the media mud. 

We suspect that the ABC Commissioners appointed by Governor Haslam have directed the TABC staff to clean up its act, regardless of whether media criticism was warranted.

We advise folks to avoid playing fast and loose with ABC laws and regs. If caught, penalties are likely to be much stiffer, including imposition of suspensions and revocations for more serious offenses like sales to minors, service to intoxicated patrons and failure to meet food service requirements.

What might have lead to an expensive fine in the past may lead to a notice of a hearing to revoke your liquor license. Expect to serve real suspensions of your license for serious violations.

The new kid in town is walking tall.

The good news is that Mr. Bell has a long career as an entrepreneur in the legal industry and seems to understand that LBD licensees are real business owners working to make a living. He gets it.

Kung Fu Fighting Not Good for Bar Business

Watch your bouncers. This is the lesson from a high-stakes lawsuit filed against a reputable downtown Nashville restaurant.

Rippy's Bar & Grill is defending a 4.5 million dollar lawsuit arising from allegations that bouncers violently choked a customer who was dining at the restaurant one afternoon during CMA Fest.  According to Rippy's attorney, the customer was "arrogant and aggressive." The Tennessean has more.

Bouncers should be trained to handle "arrogant and aggressive" patrons. According to the lawsuit, several witnesses called 911. One caller reported that: "There's a guy that's choking a guy out, and he's on the back staircase of Rippy's...he's trying to kill him." The lawsuit alleges that one of the bouncers is a martial arts Brazilian jiu-jitsu fighter.

Over the past couple of years, there have been several lawsuits brought against downtown and midtown bars over claims of aggressive bouncing. We suspect that most involve out of control customers. 

Regardless, bouncers should know how to detain "arrogant and aggressive" patrons; not teach them a lesson. Teaching a lesson can lead to an expensive lawsuit.

In Heaven There Is No Beer

Need a Metro Nashville beer permit in September? Better plan carefully. You may find that real life mirrors the afterlife.

There may be no beer in heaven, but a bar without beer in Tennessee is not bound for eternity.

The beer board is moving to the Third Floor of the Howard School complex starting on Friday September 14, 2012. According to official notices, the beer board offices will be closed from Friday until Tuesday September 18.

We have been told, reminded and admonished that no one - absolutely no one - will be able to get a temporary or permanent beer permit until the offices reopen on Tuesday September 18. No one. No, not even you.

Office moves are often fraught with difficulty, and we advise folks to count on the possibility of delays with the beer board reopening date.

If you need a beer permit the week of September 17, we encourage you to obtain the permit on Thursday September 13. The beer board meets that day at 11:30.

More Breweries for Nashville?

Pending Metro Nashville legislation will greatly increase potential locations for breweries in Music City. Currently, breweries must be on land zoned for industrial use.

Industrial areas are usually located in remote areas, away from retail centers and houses. Who wants a horse rendering plant making glue near their shop or house?

But breweries are different. Although classified as an industrial use, breweries like Yazoo and Jackalope work well in retail commercial districts. Part of the Gulch is zoned for manufacturing, but popular commercial areas in East Nashville and Hillsboro Village prohibit breweries, because they are classified as industrial plants - as if they made glue from horses.

Fat Bottom Brewery ran into this issue when working on its new brewery in the old Fluffo Mattress site on Gallatin Pike. Scott Davis, the local Metro council member, introduced legislation to fix the problem for future brewers.

Davis' legislation allows "nano-breweries" that produce less than 1,250 barrels of beer per month to be located in most commercial zones. Davis' legislation has some simple rules that require breweries to be sensitive to neighborhood concerns. The proposed ordinance and the specific restrictions are at this link.

We think the nano brewery legislation is great for Nashville and its budding suds-stewing scene. If you support local beer brewing in Nashville, e-mail your local council member. You can find your local council member on the map at this link. Click on the e-mail link and let our representatives know Nashville loves beer.

Boom Boom, Out Go the Lights for Tennessee Tax Man

The Tennessee Department of Revenue was closed this afternoon, September 4, 2012. We understand that power suddenly failed, following a loud boom in the basement of the Andrew Jackson Building.

Reminds us of the Pat Travers Band rocking one hit wonder: "Boom Boom, Out Go the Lights."

Time to rejoice?

Not if you are a restaurant or bar owner trying to obtain tax clearance for a new or renewed Tennessee liquor license. The ABC will not be able to clear licenses until power is restored and tax officials catch up. Expect delays.

We hear that Revenue offices will likely be closed Wednesday. There was no estimate for when power would be restored.

Just another day in paradise for licensing in Tennessee.

Let us know how this affects your business by leaving comments so we can keep everyone posted.

Old McDonald Sells Wine in Dry Tennessee Counties

Russellville Tennessee made history at the Tennessee ABC this summer with approval of the first Farm Winery License.

Russellville is an unincorporated community in Hamblen County, Tennessee, located along U.S. Route 11E, midway between Whitesburg and Morristown, and north of Knoxville. We suspect that the town is as dry as the day is long.

In it's infinite wisdom, in the 2012 Session, the Tennessee General Assembly legalized the sale of wine made from grapes grown on  farms, even in dry counties.

Old McDonald grows the grapes and contracts with a winery to make wine. He can then offer tastings of the wine at the farm and sell bottles of wine to tourists, and to locals.

Unlike traditional retail package stores, we see no restrictions on sales on Sunday, popular holidays like July 4, or late at night, after liquor stores are legally required to be closed. Of course, in a dry area, competition is limited only to beer.

The applicant, Katie Martin, has contracted with Hillside Winery in Sevierville to produce the wine on behalf of The Grape Barn at Nolichucky Vineyard.

Wildcats Not Buying Wine in Volunteer Groceries

Media hype seized upon the recent Kentucky case that ruled in favor of wine in grocery stores. The front-page headline of The Tennessean trumpeted: "Wine-in-grocerires effort gets boost from Kentucky Ruling."

Not so - from a legal perspective. Tennessee and Kentucky law are vastly different. It's an apples and oranges comparison.

Kentucky law allows drug stores to sell liquor anywhere inside the store. Grocery stores have to have a separate store, where access by minors is controlled.

A Kentucky licensing friend, Dan Meyer, was quoted as explaining that "the law dealing with the sale of wine and liquor in pharmacies and grocery stores dates to Prohibition, when prescriptions could be obtained to buy alcohol at drug stores." The sales were restricted in grocery stores, he said, because the thought was that minors are often in grocery stores and should not be exposed to booze.

Judge Heyburn noted that in modern times, drug stores and grocery stores sell similar goods and both are frequented by minors. The judge found that Kentucky failed to justify “why a grocery-selling drugstore like Walgreens may sell wine and liquor, but a pharmaceutical-selling grocery store like Kroger cannot. The Louisville Times Courier has more details.

We understand why the judge found that Kentucky's law was invalid. 1930's drugstores are completely different from today's Walgreens and CVS, which cater to the same audience as grocery stores - including minors. Personally, both my kids are drawn to Walgreens and CVS for impulse purchases of holiday items, toys and candy.

  

Tennessee liquor laws do not allow drugstores or grocery stores to sell liquor. Tennessee requires that liquor store owners be Tennessee residents. Liquor stores can only sell liquor, cash checks and sell lottery tickets. Only one liquor store can be owned by one person or shareholders.

In Tennessee, a pharmacy, as well as a grocery store, does not qualify for a liquor license.

There may be legal issues with Tennessee's retail liquor store laws, but the problems that lead to the failure of the Kentucky law are not relevant to Tennessee.