AN ACT to amend Tennessee Code Annotated, Section 57-4-101; Section 57-4-102; Section 57-4-203 and Section 57-4-301, to authorize licensed restaurants and hotels to obtain catering licenses, to allow the limited sale of alcoholic beverages off the licensed premises, and to impose a separate license fee for such catering license.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:

SECTION 1. Tennessee Code Annotated, Section 57-4-101, is amended by adding the following subsection:

( ) A restaurant or hotel licensed under this chapter may seek an additional license permitting the restaurant or hotel to distribute and sell wine, beer and other alcoholic beverages at locations other than the licensed premises if the restaurant or hotel is providing catering services, if such location is within a jurisdiction where such sales are authorized. A caterer licensed under this chapter may distribute and sell wine, beer and other alcoholic beverages at locations other than the permanent catering hall if the caterer is providing catering services at a location that is within a jurisdiction where such sales are authorized.

SECTION 2. Tennessee Code Annotated, Section 57-4-203, is amended by changing the heading of subdivision (i) to read as follows:

(i) PREMISES MUST BE LICENSED - EXCEPTION TO CONVENTIONS, SOCIAL GATHERINGS AND CATERED EVENTS.

SECTION 3. Tennessee Code Annotated, Section 57-4-203(i), is amended by adding the following new subsection:

(3) A restaurant, hotel, or caterer holding a valid catering license may sell or distribute wine, beer, and other alcoholic beverages at social or commercial events, catered by the restaurant, hotel, or caterer where the restaurant, hotel, or caterer is providing food service at such event; provided, however, the restaurant, hotel, or caterer shall notify the commission as to the time, location and duration of the catered event before the commencement of the event."

SECTION 4. Tennessee Code Annotated, Section 57-4-301, is amended by adding the following subsection:

( ) A restaurant, hotel, or caterer licensed under this chapter may obtain a catering license upon the payment of a five hundred dollar ($500) additional privilege tax, for state purposes, to be paid annually.

SECTION 5. Tennessee Code Annotated, Section 57-4-101, is amended by adding the following subsection:

( ) It is lawful to sell alcoholic beverages, wine and beer on the premises of a caterer licensed under this chapter as well as at such other sites as the licensed caterer has given advanced notice to the commission. Such sites shall be considered to be within the licensed premises for the purposes of this chapter.

SECTION 6. Tennessee Code Annotated, Section 57-4-102, is amended by adding the following new subsection:

( ) "Caterer" means a business engaged in offering food and beverage service for a fee at various locations, which:

(A) Operates a permanent catering hall on an exclusive basis;

(B) Has a complete and adequate commercial kitchen facility; and

(C) Is licensed as a caterer by the Tennessee Department of Health.

SECTION 7. This act shall take effect upon becoming a law, the public welfare requiring it.