57-3-202 - Manufacturer's or distiller's licenses Qualifications of applicants Fees Permits to solicit orders Affirmation of corporate price policy Penalty Rules and regulations.

57-3-202. Manufacturer's or distiller's licenses Qualifications of applicants Fees Permits to solicit orders Affirmation of corporate price policy Penalty Rules and regulations.

(a)  A manufacturer's or distiller's license may be issued, as hereinafter provided, for the manufacturing of alcoholic spirituous beverages or vintage alcoholic beverages. Any person, firm, or corporation desiring to manufacture for commercial purposes any alcoholic spirituous beverages or vintage alcoholic beverages shall make application to the commission for a license to manufacture the same, which application shall be in writing and verified, on the forms herein authorized, to be prescribed and furnished; and, thereupon, the commission may grant such license, subject to the provisions of this chapter.

(b)  All applicants if individuals must be citizens of the United States, and all stockholders of any corporate licensee must likewise be citizens of the United States.

(c)  Such license shall not be issued unless and until there be paid to the commission a separate license fee of one thousand dollars ($1,000).

(d)  Before a representative of any manufacturer, rectifier or importer may solicit orders from a licensed wholesaler in this state, such representative must be the holder of a permit issued by the commission. The fee for such permit shall be fifty dollars ($50.00). Such permit shall authorize the holder to solicit orders upon the premises of a licensed wholesaler. No representative may sell the products of, or represent more than one (1) manufacturer, rectifier or importer and its affiliates; that is, such subsidiaries as it may control by means of ownership or the ownership of a controlling stock interest.

(e)  (1)  Every manufacturer, distiller, rectifier, factor, broker, or vintner of alcoholic spirituous beverages or vintage alcoholic beverages shall, before offering for sale to any licensed wholesaler or distributor in the state of Tennessee any brand of alcoholic spirituous beverages or vintage alcoholic beverages, file with the commission an affirmation of corporate policy with regard to sales of all brands owned, controlled, sold, offered for sale, franchised or distributed by such manufacturer, distiller, rectifier, factor, broker or vintner in this state;

     (2)  The affirmation shall certify that the manufacturer, distiller, rectifier, factor, broker or vintner shall not willfully sell or offer for sale any alcoholic spirituous beverages or vintage alcoholic beverages of a particular brand, proof or size, in Tennessee at a price higher than the price such liquors are sold or offered for sale to licensed wholesalers in any other state in the United States;

     (3)  “Price,” as used in this subsection (e), means platform price at the distillery and does not include price differentials based on transportation costs, containers or other costs not directly related to the quality and proof of the product concerned. Quantity discount prices for liquors sold to monopoly states or elsewhere shall not be considered to be violation of the manufacturer's, distiller's, rectifier's, factor's, broker's, or vintner's affirmation if such discount prices are also offered to Tennessee wholesalers for purchases in the same quantities;

     (4)  Any person, firm or corporate official who makes a false statement in any affirmation filed hereunder is guilty of a misdemeanor and shall be punished by a fine of not more than one thousand dollars ($1,000) and by imprisonment for not more than six (6) months. Every affirmation filed hereunder shall be deemed to have been made in each county in Tennessee where alcoholic spirituous beverages or vintage alcoholic beverages are legally offered for sale;

     (5)  Any manufacturer, distiller, rectifier, factor, broker, or vintner, who fails to file such affirmation or willfully violates the pledges contained therein, shall have its license and privileges to import and sell alcoholic spirituous beverages or vintage alcoholic beverages in the state refused, revoked or suspended by the commission for a period of not less than one (1) year;

     (6)  For the purpose of carrying out the provisions of this subsection (e), each licensed manufacturer, distiller, rectifier, factor, broker or vintner in the state of Tennessee offering for sale to any licensed wholesaler or distributor in the state of Tennessee any brand of alcoholic spirituous beverages or vintage alcoholic beverages shall file the affirmation as herein provided with the commission in accordance with the provisions contained in subdivision (e)(1), and other pertinent statutes.

(f)  “Vintage alcoholic beverages,” as used in this section, means all wine sold by wholesalers licensed under § 57-3-203.

(g)  (1)  A manufacturer's license may be issued to a person, firm or corporation for the limited purpose of blending nonalcoholic products with alcoholic beverages on premises, either on its own behalf or on behalf of other entities pursuant to contract.

     (2)  A licensee under this subsection (g) may obtain the alcoholic beverages for use in its blending operations from any entity holding a license or permit issued under this section, §§ 57-2-104, 57-3-203, and part 6 of this chapter.

     (3)  A license may be issued to a manufacturer, under this subsection (g), notwithstanding the requirements of § 57-3-106.

     (4)  A manufacturer, licensed under this subsection (g) for the limited purpose of blending, may sell, distribute or transport the product produced from its blending operations in accordance with this title.

(h)  The commission is empowered to make such regulations, investigations and audits as it may deem necessary for enforcing and preventing violations of this chapter.

[Acts 1939, ch. 49, § 6; 1945, ch. 167, § 3; 1949, ch. 284, § 5; C. Supp. 1950, § 6648.11 (Williams, § 6648.9); impl. am. Acts 1963, ch. 257, § 18; Acts 1975, ch. 234, § 1; 1976, ch. 838, § 1; T.C.A. (orig. ed.), § 57-115; Acts 2006, ch. 616, § 1.]