Bill > SB2163

This bill amends Tennessee law to allow manufacturers, wineries, or non-resident sellers of alcoholic beverages to have an interest in establishments licensed to sell alcohol, provided that their ownership or interest is held in an irrevocable trust managed by an independent trustee, meaning a trustee who is not personally connected to the beneficiary. This change aims to address common ownership issues within the alcoholic beverage industry. Importantly, individuals whose interests are placed in such trusts cannot manage or operate the business. However, they can enter into licensing agreements through the trust for the use of their name, image, or likeness, and participate in advertising or promotional activities for the brand or licensed retail establishment, as long as these activities comply with federal law and do not exceed a 10% compensation based on sales or profits. The bill also clarifies that beneficiaries of these trusts will have limitations on personal liability, similar to protections afforded to trustees.