Tennessee House Bill HB0613

Tennessee 2023-2024 Regular Session

• Introduced: 1/26/23
• Refer: 2/1/23
• Refer: 3/1/23
• Refer: 3/8/23
• Chaptered: 4/18/23
• Passed: 4/18/23

Caption

AN ACT to amend Tennessee Code Annotated, Title 57, Chapter 3, relative to wineries.

Impact

The introduction of alternating proprietorship agreements is expected to encourage more cooperative business models among wineries, potentially lowering operational costs and enhancing production capabilities. By allowing wineries to share resources without losing their licensed status, this bill could foster a sense of community within the industry while promoting local wine production. However, the requirement that wineries must not share substantial ownership could prevent certain collaborations, ensuring competition and diversity among local wineries.

Summary

House Bill 613 aims to amend existing laws related to wineries in Tennessee, specifically within Title 57, Chapter 3 of the Tennessee Code Annotated. The bill introduces provisions for 'alternating proprietorship agreements,' which would allow multiple licensed wineries to share bonded or general premises for the purpose of manufacturing and warehousing wine. This change is significant as it lays down the framework for collaborating wineries to utilize shared facilities while ensuring that each entity maintains a designated and approved exclusive area for their operations.

Sentiment

The sentiment surrounding HB 613 appears to be generally positive among stakeholders in the winery community, as it presents an opportunity for growth and partnership. Wineries advocating for the bill appreciate the increased flexibility and potential for shared resources. Nonetheless, there may be concerns from non-participating wineries or small operations that the bill could lead to monopolistic practices or unfair competitive advantages to larger wineries capable of forming such agreements.

Contention

Despite its benefits, HB 613 has the potential to create contention around the interpretation and execution of its provisions. Questions may arise about the enforcement of the non-ownership clause and how regulatory bodies will assess compliance with the variety of shared resources among participating wineries. Additionally, there may be discussions regarding the balance between fostering collaboration in the industry and maintaining competitive fairness.