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Sale of Wine in Grocery Stores

This proposal was enacted as Public Chapter 357. 

New Legislation Filed by TML

The Wine-In-Grocery Stores (WIGS) bill requires an applicant to be licensed by the Tennessee Alcohol and Beverage Commission. As a condition, each applicant to the TABC must possess a certificate signed by either the mayor or a majority of the members of the legislative body.

This certificate is required to include a statement under such signature, certifying that the applicant, who is in charge of the business, has not been convicted of a felony within a ten year period immediately preceding the date of application.

Problem

Neither a city nor a county legislative body is in a position to determine with any accuracy whether an individual applicant has been convicted of a felony without conducting a background check. There is a cost associated with performing such checks. Yet, the WIGS legislation does not authorize a fee to be collected to offset this mandate.

Proposed Legislation

SB1375(Briggs)/HB757(Ramsey) removes the requirement that a either a mayor or a majority of the members of a local governing body certify, under signature, that an applicant is not a convicted felon.

Update: Wine in Grocery Stores

 

The Tennessee Alcoholic Beverage Commission announced today that it delivered, in less than one week, retail food store licenses to over 50% of grocery stores in the state applying to sell wine by July 1st.

 

With less than two weeks to go, the ABC has also issued conditional “letters of approval” to nearly 80% of grocery store applicants. Stores holding a conditional “letter of approval” are authorized to accept delivery and stock wine. Grocery stores without a letter of approval are either missing required documentation or were submitted closer to the upcoming rollout.

 

State legislators and industry representatives in previous weeks had expressed concern over the rollout of wine in grocery stores given the unexpected departure of the previous Executive Director just three months before the new law takes effect.

 

However, as of last week, the commission had received 499 applications, sent 398 letters of approval, and delivered 279 retail food store licenses. In other words, 70% of grocery stores holding a letter of approval have received a license in hand as of today, which is issued, effective, and post-dated to the date of July 1st. These stores will be authorized to sell wine effective 8:00 a.m. on July 1st. The ABC expects to deliver additional licenses to the remaining qualified stores in the next two weeks.

 

"We are so pleased that we have completed all the necessary requirements of the application process, and will have all 72 of our eligible stores licensed and ready to sell wine on July 1st", said Melissa Eads, Kroger Nashville division spokesperson. "We are thankful to the ABC and the Tennessee Legislature for their leadership in bringing wine to retail food stores in Tennessee. Wine has been one of the most requested items in our stores for years, so we know our customers are looking forward to this as well."

 

On May 24th, the Commissioners of the ABC appointed Clayton Byrd to serve as its Executive Director. “The staff at the ABC is working tirelessly to process applications, communicate with applicants, conduct site inspections, and verify statutory compliance with documentation.” Byrd said. “I’m committed to the success of this rollout and I’m proud of our team. This commission will continue to work diligently with the industry and in a business friendly manner to ensure continued success.”

 

For questions, please contact Brandy Crissman, Administrative Secretary, Brandy.Crissman@tn.gov

LAST UPDATED 6/20/2016

Citizens overwhelmingly vote for wine in grocery stores

The wine in retail food stores referendum passed everywhere it appeared on the ballot.

Legislation passed by the Tennessee General Assembly in March of this year was a compromise between retail food stores and liquor stores. Many liquor stores across the state began selling beer and party supplies on July 1 of this year as allowed by the new law.

The wine in retail food stores referendum appeared on the ballot in 78 qualifying municipalities across Tennessee. Petitions were filed in those communities this summer and were certified by the local election commissions to authorize the referendum. In the 78 communities where the wine referendum passed, most retail food stores will be able to sell wine beginning July 1, 2016.

Following is a complete list of the 78 municipalities where the wine in retail food stores referendum was passed.

Alcoa, Ashland City, Arlington, Athens, Atoka, Bartlett, Brentwood, Burns, Bristol,Chattanooga, Church Hill, Clarksville, Cleveland, Clinton, Collegedale, Collierville, Cookeville, Coopertown, Covington, Crossville, Dyersburg, East Ridge,Elizabethton, Etowah, Farragut, Fairview, Franklin, Gallatin, Gatlinburg, Germantown, Greeneville, Goodlettsville, Harriman, Hendersonville, Jackson, Johnson City, Jonesborough, Kingston, Kingsport, Knoxville, Lakesite, Lebanon, Lenoir City, Loudon, Manchester, Martin, Maryville, McKenzie Memphis, Millington, Monteagle, Morristown, Mount Juliet, Mount Pleasant, Munford, Murfreesboro, Metro Nashville, Newport, Norris, Oak Ridge, Oakland, Paris, Pigeon Forge, Pleasant View, Red Bank, Rogersville, Savannah, Sevierville, Shelbyville, Signal Mountain, Smyrna, Spring Hill, Thompson's Station, Tullahoma, Union City, and White House.

last updated 11/15/2014

Wine in Grocery Stores on 80 Local Referendums

A total of 80 municipalities collected enough signatures to allow a referendum on the November ballot to determin whether wine can be sold in grocery stores.

To get the wine referendum on the ballot, eligible communities - those that already allow liquor-by-the-drink, liquor stores or both - had to submit petitions to the local election commission by Aug. 21 with at least as many signatures equal to 10 percent of their residents who voted in the last gubernatorial election.

In the municipalities where the referendum is approved on Nov. 4, retail food stores will be able to sell wine beginning July 1, 2016.

The following communities have submitted petitions to their local election commissions which were then verified: Anderson: Clinton, Norris, Oak Ridge Bedford: Shelbyville Blount: Alcoa, Maryville Bradley: Cleveland Carter: Elizabethton Cheatham: Ashland City, Pleasant View Cocke: Newport Coffee: Manchester Cumberland: Crossville Davidson: Nashville Dickson: Burns Dyer: Dyersburg Fayette: Oakland Franklin: Monteagle, Tullahoma Greene: Greeneville Hamblen: Morristown Hamilton: Chattanooga, Collegedale, East Ridge,Lakesite, Red Bank, Signal Mountain Hardin: Savannah Hawkins: Church Hill, Rogersville Henry: McKenzie, Paris Knox: Farragut, Knoxville, Loudon: Lenoir City, Loudon Madison: Jackson Maury: Mt. Pleasant, Spring Hill McMinn: Athens, Etowah Montgomery: Clarksville Obion: Union City Putnam: Cookeville Roane: Harriman, Kingston Robertson: Coopertown, White House Rutherford: Murfreesboro, Smyrna Sequatchie: Dunlap Sevier: Gatlinburg, Pigeon Forge Sevierville Shelby: Arlington, Bartlett, Collierville, Germantown Memphis, Millington Sullivan: Bristol, Johnson City Kingsport Sumner: Gallatin, Goodlettsville Hendersonville, White House Tipton: Atoka, Covington, Munford Washington: Johnson City Jonesborough Weakly: Martin Williamson: Brentwood, Fairview, Franklin, Spring Hill, Thompson's Station Wilson: Lebanon, Mt. Juliet

last updated 9/15/2014

Legislature approves wine in grocery stores legislation

Tennessee is one step closer to allowing grocery stores to sell wine. The Tennessee Legislature approved legislation that grants authority to cities and counties that have package stores or liquor-by-the-drink sales, or both, to approve wine in grocery stores in local referendums.

To get the wine referendum on the ballot, eligible communities must submit petitions to the local election commission with at least as many signatures equal to 10 percent of their residents who voted in the last gubernatorial election. The petitions must be completed and verified by the local election commissions by Aug. 21.

New legislation includes local referendums

Backers of wine sales in Tennessee grocery stores filed new legislation to allow voters in the towns and cities with liquor stores and liquor-by-the-drink in restaurants to hold referendums to decide on wine in local grocery stores.

In each of the previous six years, similar bills simply repealed the ban on wine in grocery stores statewide - or limited the sales to localities with liquor stores and liquor in bars and restaurants - without referendums.

Sen. Bill Ketron and Rep. Jon Lundberg are sponsoring the legislation. Both have been quoted in the press as "feeling very confident" that measure will pass this time.

last updated 2/4/2013


The latest effort to legalize the sale of wine in Tennessee grocery stores appears stalled at the starting gate, due to a lack of a sponsor in the Senate.

Rep. Jon Lundberg, R-Bristol, on Jan. 26 filed HB2874, which would allow sales of wine in supermarkets or groceries in any jurisdiction where voters approved in a local referendum. But no companion bill was filed in the Senate and the deadline for doing so has passed, meaning the measure cannot become law.

last updated 2/06/2012


A House subcommittee rejected a measure that would have allowed grocery stores to sell wine, dealing a likely fatal blow to the bill for the fourth straight year.

The lawmakers turned down a proposal that would have put the question to voters county by county of whether grocery stores can sell wine, and they deferred all other consideration of the bill until the summer of 2012.

last updated 4/14/10


Tennessee opened the door last year on mail-order shipments of wine from out-of-state wineries to individual customers. But the door is still shut on wine sales in grocery stores.

During this session Sen. Bill Ketron (R-Murfreesboro) and Rep. Jon Lundberg (R-Bristol) will reintroduce legislation that would allow wine sales in Tennessee retail food stores.

The proposed legislation recommends changes that benefit liquor stores and their revenue, including:

· Owning multiple stores

· Selling stores to out-of-state companies

· Offering wine tastings in liquor stores

· Providing alcohol to non-profit events free of charge (sponsorships)

· Selling additional items associated with alcoholic beverages, including glasses, corkscrews, ice, mixers, etc.

While the Tennessee Municipal League has no formal position on this legislation, staff will continue to monitor the proceedings.

last updated 2/01/2011

Background

Under current law, only licensed retail liquor stores (“package” stores) are authorized to sell wine for off-premises consumption.The tax levied on the sale of wine is a state privilege tax and assessed at $1.21 per gallon.The state general fund receives 82.5 percent of the revenues collected from this tax with the remaining 17.5 percent going to county government and distributed based on population and land mass.Municipalities do not receive any tax revenue associated with the sale of wine in package stores.

During the second session of the 105th General Assembly, legislation was introduced which would have authorized the sale of wine at retail food stores. The retail food store must have been located in a county or municipality that has authorized the sale of alcoholic beverages by local option election and receive a "wine at food store" license from the Tennessee Alcoholic Beverage Commission.This legislation would have levied the existing tax on the sale of wine in retail food stores resulting in an estimated increase in revenue of $17.8 million to the state and $4 million to county government.The legislation was referred to a summer study committee.The study met and debated the subject but concluded its businesses without offering any recommendation.