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SB 835

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 Todd Gardenhire

Tennessee law now allows judges to award attorney's fees to parties winning alcohol licensing disputes, shifting litigation costs to losing regulatory agencies or plaintiffs.

Pub. Ch. 227
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Bill Summary · SB 835

Legislative bill overview

SB 835 allows judges and administrative hearing officers in Tennessee to award attorney's fees and costs to prevailing parties in administrative and civil actions related to alcoholic beverage regulations. The bill amends three sections of Tennessee Code Annotated governing the Alcoholic Beverage Commission and related licensing matters.

Why is this important

This change shifts financial risk in alcohol licensing disputes by allowing winning parties to recover legal expenses, which could deter frivolous complaints or regulatory actions while simultaneously making it more costly for smaller businesses or individuals to challenge regulatory decisions. It affects how disputes are resolved between the alcohol industry, regulators, and potentially competitors or public advocates.

Potential points of contention

  • Chilling effect on enforcement: Regulatory agencies may become more cautious with enforcement actions if they risk paying opponent's legal fees when cases are lost, potentially weakening alcohol regulation oversight
  • Barrier to public participation: Consumer groups or community advocates challenging harmful practices may avoid litigation if they risk substantial attorney's fees, limiting non-industry voices in regulatory disputes
  • Unequal bargaining power: Well-funded alcohol businesses can more easily absorb litigation costs and countersue, while smaller operators or public interest groups face disproportionate financial risk

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

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