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Terms Used In Tennessee Code 57-3-415

  • Commission: means the alcoholic beverage commission, except as otherwise provided. See Tennessee Code 57-3-101
  • Contract: A legal written agreement that becomes binding when signed.
  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
  • License: means the license issued pursuant to this chapter. See Tennessee Code 57-3-101
  • Licensee: means any person to whom such license has been issued pursuant to this chapter. See Tennessee Code 57-3-101
  • Person: includes a corporation, firm, company or association. See Tennessee Code 1-3-105
  • Retailer: means any person who sells at retail any beverage for the sale of which a license is required under this chapter. See Tennessee Code 57-3-101
  • State: when applied to the different parts of the United States, includes the District of Columbia and the several territories of the United States. See Tennessee Code 1-3-105
  • Venue: The geographical location in which a case is tried.
  • Wholesaler: means any person who sells at wholesale any beverage for the sale of which a license is required under this chapter. See Tennessee Code 57-3-101
  • Wine: means the product of the normal alcoholic fermentation of the juice of dried or fresh, sound, ripe grapes, fruit, or other agricultural products, with the usual cellar treatment and necessary additions to correct defects due to climatic, saccharine, and seasonal conditions, including champagne, sparkling, and fortified wine of an alcoholic content not to exceed twenty-one percent (21%) by volume. See Tennessee Code 57-3-101
  • Winery: means and includes any place or premises wherein wines are manufactured from any fruit or brandies distilled as the by-product of wine or other fruit or cordials compounded, and also includes a winery for the manufacture of wine. See Tennessee Code 57-3-101
  • written: includes printing, typewriting, engraving, lithography, and any other mode of representing words and letters. See Tennessee Code 1-3-105
(1) As used in this section, “fulfillment house” means an in- or out-of-state entity, other than a winery, or farm winery, wholesaler, non-resident seller, or common carrier, that takes physical possession of a winery direct shipper’s wine and handles logistics, including warehousing, packaging, order fulfillment, or shipping services on behalf of a winery direct shipper licensee for products that the winery direct shipper is eligible to ship to residents in this state.
(2) The winery direct shipper and the fulfillment house may transport the wine to the fulfillment house. It is lawful for a common carrier to transport the wine to a fulfillment house. Section 57-3-207(i) is not applicable to wine transported to a fulfillment house.
(b) A person, firm, limited liability company, or corporation may apply to the commission to obtain a fulfillment house license where the fulfillment house is involved in the shipping of wine to residents of this state and pay an application fee of three hundred dollars ($300) and an annual license fee of three hundred dollars ($300) and an additional fifty dollars ($50.00) for each separate location where it takes physical possession of wine before making or causing a shipment into, within, or outside of this state. A fulfillment house license must be renewed annually. A fulfillment house licensee may only provide services related to shipment of wine produced by and belonging to a winery direct shipper licensee into or within this state according to the requirements of this section. A fulfillment house licensee shall not provide services related to shipment of wine into or within this state to a retailer licensed under this title, an entity licensed as an out-of-state retailer, or a person or entity that is not a winery direct shipper licensed pursuant to § 57-3-217. A fulfillment house license granted pursuant to this section authorizes the licensee to only ship wine into or within this state for winery direct shippers licensed pursuant to § 57-3-217. Any other activity into or within this state is unlawful.
(c) A fulfillment house license applicant shall provide the following information as part of its application:

(1) All locations where it takes physical possession of wine for shipment into or within this state;
(2) An executed consent to jurisdiction and venue of all actions brought before the commission, a state agency, or the courts of this state, such that all hearings, appeals, and other matters relating to the license of the fulfillment house must be held in this state;
(3) A written acknowledgement that it will contract only with common carriers that agree that the delivery of wine in this state will be by face-to-face delivery, that deliveries will only be made to individuals who are at least twenty-one (21) years of age, and that the recipient must sign upon receipt of the wine; and
(4) Any other provisions as required by the commission.
(d) A fulfillment house licensee shall ensure that all containers of wine shipped directly to an individual in this state are labeled with the conspicuous words “SIGNATURE OF PERSON AGE 21 OR OLDER REQUIRED FOR DELIVERY”, and the name, address, and license number of the fulfillment house licensee.
(e) All containers of wine shipped directly to a resident of this state must be shipped using a common carrier. A fulfillment house licensee shall not ship wine into or within this state from, or on behalf of:

(1) Unlicensed direct shippers, either in-state or out-of-state;
(2) A retailer licensed under this title;
(3) An out-of-state retailer; or
(4) A person or entity that is not a winery direct shipper licensed pursuant to § 57-3-217.
(f) A fulfillment house licensee shall verify that each winery direct shipper is licensed to ship to consumers in this state before making a shipment, and failure to verify proper licensure subjects a fulfillment house licensee to a fine, suspension, or revocation in accordance with subsection (h).
(g) A fulfillment house licensee shall maintain records for a minimum of three (3) years from the shipment date, which must include:

(1) The name, address, and license number of the licensed winery direct shipper;
(2) The name of the common carrier;
(3) The date of each shipment;
(4) The carrier tracking number;
(5) The quantity, by weight or other means, and product type of wine shipped; and
(6) The name and address of the recipient.
(h) A fulfillment house licensee shall submit these records as a report to the commission quarterly in the manner, form, and format prescribed by the commission. Any fulfillment house licensee found in violation of this section is subject to fines, suspension, or revocation of its license in accordance with this title and shall reimburse the commission for all costs incurred in connection with the investigation and administrative action, including the out-of-pocket costs and reasonable personnel costs. The commission is empowered to make such regulations, investigations, and audits as it may deem necessary for enforcing and preventing violations of this section.
(i) The requirements for a common carrier under § 57-3-217 equally apply to wine obtained from a fulfillment house licensee on behalf of a winery direct shipper to the same extent as if the common carrier obtained the wine from the winery direct shipper licensee.
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