In just one week, retail food stores within the city limits of Elizabethton that have been approved for a license through the state can begin selling wine from their shelves.
The process to allow retail food stores to sell wine has been a long one, beginning just over two years ago. In March 2014 Gov. Bill Haslam signed into a law a bill authorizing local option referendums to permit the sale of wine in retail food stores. Under the law, only those municipalities that had already approved allowing retail package stores or liquor-by-the drink establishments or both could pursue the local option to allow wine in grocery stores.
In the November 2014 election, Elizabethton was one of 80 city or county governments across the state to feature a local referendum allowing the sale of wine at grocery stores, big-box retailers and convenience stores. The measure was approved by city voters by a margin of 61.66 percent to 38.34 percent. A total of 1,785 city residents voted for the measure while 1,110 opposed it.
While the referendum passed in November 2014, the law signed into effect provided a start date of July 1, 2016, in order to allow the Tennessee Alcoholic Beverage Commission to set regulations as well as allowing a transition period for existing package stores to adjust to any shift in the state’s alcoholic beverage laws.
According to the TABC, as of Monday 499 applications had been filed seeking state licensure to sell wine from a retail food store. As of that same date, 279 of those applicants had received their license while another 119 had received a conditional “letter of approval” which authorizes them to accept delivery of and stock wine.
“The staff at the ABC is working tirelessly to process applications, communicate with applicants, conduct site inspections, and verify statutory compliance with documentation,” said TABC Executive Director Clayton Byrd. “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.”
Stores that have received their license by July 1 can begin selling wine effective at 8 a.m. on that date.
As with stores that sell beer or liquor, there are regulations set forth in state law that food retailers who receive a license to sell wine must follow in order to maintain their license, such as time frames when the product can be sold and training for those who will be responsible for the sale of wine.
“The exact same hours apply to the sale of wine for retail food stores that apply to retail package stores,” said Joshua Stepp, staff attorney for the TABC.
Under state law “a Retail Food Store may sell wine only between the hours of 8:00 a.m. and 11:00 p.m. on Monday through Saturday. A Retail Food Store may not make any sale of wine on Sunday or on Christmas, Thanksgiving, Labor Day, New Year’s Day, or the Fourth of July.”
So, retail food stores who have their license in place by the time the new law takes effect will be allowed to sell wine on July 1 and July 2 but not on July 3 because it is a Sunday and not on July 4 because it is a holiday.
One major difference in the state alcoholic beverage laws as it relates to wine is which establishments are allowed to provide samples to customers. Currently licensed package stores are allowed to provide samples as are some retail stores which sell beer. Wineries are also permitted to serve samples.
“No sampling of wine is allowed at retail food stores,” Stepp said.
State law also requires training for employees in retail food stores where wine will be sold.
“All clerks who will be selling wine must be certified clerks and attend two hours of responsible vendor training regarding the sale of wine,” Stepp said. “Designated ‘Wine Managers’ of the store must also attend this training, as well as an additional two hour legal training course.”
Retail food stores who receive a license to sell wine must renew their license annually, but Stepp said the renewal process is simpler than the initial application process.
As part of the application process, retail food stores must provide a declaration of citizenship as well as a “certificate of good moral character” for those involved in the management of wine sales. The applicants must also provide a Federal Alcohol Dealer Registration Form.
Applicants must pay a non-refundable $400 application fee as well as a $1,250 license fee which is due upon issuance of the license.
Stepp said anyone who believes an establishment — whether it be for wine in retail food stores, a package store or an establishment with a license for on-premises consumption of alcohol — is violating any of the state’s laws regarding alcoholic beverages should report the matter to the Tennessee Alcoholic Beverage Commission. The nearest regional office for the TABC is located in Johnson City and reports can be called in at 423-434-6451. Complaints can also be made online at the TABC website www.tn.gov/abc using a fill in form under the “Forms” tab on the page.