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SB 1345

Alcoholic Beverage Commission - As introduced, restricts the prohibition on holding an interest in or being employed by a distillery, wholesale dealer, or retail dealer, or holding an alcoholic beverage license in this state, only to family members of voting members of the commission. - Amends TCA Title 57, Chapter 1.

114th Regular Session (2025-2026) Introduced by Heidi Campbell

Restricts employment and licensing prohibitions only to family members of voting Tennessee Alcoholic Beverage Commission members.

Passed on Second Consideration, refer to Senate State and Local Government Committee
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Bill Summary · SB 1345

Summary of Bill: SB 1345 / HB 1269 (Tennessee, 114th Legislature)

Title

Alcoholic Beverage Commission - As introduced, restricts the prohibition on holding an interest in or being employed by a distillery, wholesale dealer, or retail dealer, or holding an alcoholic beverage license in this state, only to family members of voting members of the commission. Amends Tennessee Code Annotated (TCA) Title 57, Chapter 1.

Purpose and Intent

  • Clarify and limit the existing prohibition on certain associations with the alcoholic beverage industry to specifically family members of voting members of the Tennessee Alcoholic Beverage Commission (ABC).
  • Ensure that the prohibition against employment or license ownership applies only to family members of ABC voting members, rather than to all relatives or associates of all ABC members or staff.

Key Provisions

  • Section 1: Amends TCA 57-1-108(a)
    • Current law broadly prohibits a family member of a person serving on or employed by ABC from:
    • Being employed by any distillery, wholesale dealer, or retail dealer in Tennessee.
    • Holding or having issued to them any alcoholic beverage license in the state.
    • The bill narrows this prohibition to apply only to family members of voting members of the ABC (explicitly including spouse, child or children, father or mother, niece or nephew by blood or marriage, son-in-law or daughter-in-law).
    • Importantly, the restriction is limited to family members of voting members, not all ABC personnel or all recipients of licenses generally.
  • Section 2: Effective date
    • The act takes effect upon becoming law, as public welfare requiring it.

Who is Affected

  • Family members of ABC voting members are restricted from:
    • Being employed by any distillery, wholesale dealer, or retail dealer in Tennessee.
    • Holding or being granted an alcoholic beverage license in Tennessee.
  • The prohibition does not clearly apply to non-voting ABC members or to other relatives of non-voting ABC members, per the narrowed language (the focus is specifically on family members of voting members).

Procedural and Timeline Details

  • Legislative Status (as of captured record)
    • Introduced and referred for committee (First Consideration) on February 6, 2025.
    • Passed on First Consideration (February 10, 2025).
    • Passed on Second Consideration and referred to Senate State and Local Government Committee (February 12, 2025).
  • Fiscal Note
    • The Fiscal Review anticipates new state revenue for the Alcoholic Beverage Commission (ABC) from at least one potential restaurant license application under the clarified rule.
    • Estimated revenue impact:
    • FY 2025-26: > $1,000 to ABC (with primary driver from the restaurant license application and related fees).
    • FY 2026-27 and subsequent years: > $700 per year (ongoing).
    • Specifics:
    • Restaurant license application fee: $300 (one-time).
    • Annual license fee: $650 to $1,200 (depends on seating capacity).
    • Additional tax revenue from the new restaurant licensee is expected but considered not significant due to market cannibalization (i.e., new sales may offset losses elsewhere).
    • Assumes at least one restaurant license application will occur under the clarified prohibition.

Practical Implications

  • Lenders, regulators, and industry participants should note the narrower eligibility restriction for licensing and employment, confined to relatives of voting ABC members.
  • Potential applicants for new licenses (e.g., a restaurant seeking a Tennessee alcohol license) could experience a modest fiscal impact on state revenue, starting with the one-time $300 application and ongoing $650–$1,200 annual fee, plus any local tax implications.
  • For ABC governance, this change clarifies the scope of conflict-of-interest prohibitions without broadly expanding restrictions to all individuals associated with ABC or all family members of all ABC members.

Summary

SB 1345 ( HB 1269) narrows the conflict-of-interest prohibition related to employment and licensing in the alcoholic beverage sector to only family members of voting members of the Tennessee Alcoholic Beverage Commission. It maintains current prohibitions but confines them to this subset, effective upon becoming law. Fiscal notes project modest, incremental revenue for the ABC from at least one potential new restaurant license, with modest ongoing annual revenue thereafter.

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

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