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HB 904

Alcoholic Beverage Commission - As enacted, allows a judge, hearing officer, or administrative judge to award a person or entity that prevails in an administrative or civil action brought against the person or entity attorneys' fees and costs incurred as a result of the administrative or civil action. - Amends TCA Title 4, Chapter 5; Title 27, Chapter 1 and Title 57, Chapter 1.

114th Regular Session (2025-2026) Introduced by Ron Gant

Tennessee law now allows judges to award attorneys' fees to parties winning administrative and civil cases against alcoholic beverage regulators and licensees.

Comp. became Pub. Ch. 227
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Bill Summary · HB 904

Legislative bill overview

HB 904 allows judges and administrative judges in Tennessee to award attorneys' fees and costs to parties who prevail in administrative or civil actions against regulated entities under the Alcoholic Beverage Commission and related statutes. This applies to cases involving alcohol licensing, regulation, and related disputes across three sections of Tennessee Code.

Why is this important

This shifts the financial burden of litigation by allowing successful challengers to recover their legal expenses, potentially encouraging individuals and small businesses to challenge regulatory decisions they believe are unfair. Conversely, it may increase costs for regulatory agencies and licensed entities defending their actions, potentially affecting how aggressively regulations are enforced.

Potential points of contention

  • Regulatory chilling effect: Agencies and businesses may become more cautious in enforcement or licensing decisions due to fee liability risk, potentially weakening regulatory oversight
  • Access to justice vs. litigation costs: While fee-shifting encourages challenges to bad regulatory decisions, it could discourage agencies from defending legitimate regulatory actions they believe in but cannot afford to litigate
  • Undefined "prevailing party" standards: The bill doesn't specify how courts should determine prevailing parties in partial victories or complex cases, creating ambiguity

Compiled from official sources — confirm details with the bill’s official record.

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