SB 835 - HB 904
FISCAL NOTE
Fiscal Review Committee
Tennessee General Assembly
February 27, 2025
Fiscal Analyst: Elizabeth Bransford | Email: elizabeth.bransford@capitol.tn.gov | Phone: 615-741-2564
SB 835 - HB 904
SUMMARY OF BILL: Authorizes a judge, hearing officer, or administrative judge to award
a person or entity that prevails in an administrative or civil action brought against them by, or in
challenging the actions of, the Alcoholic Beverage Commission (ABC), attorneys’ fees and costs
incurred as a result of the administrative or civil action.
FISCAL IMPACT:
NOT SIGNIFICANT
Assumptions:
• Pursuant to Tenn. Code Ann. § 57-1-213:
o ABC may assess the actual and reasonable costs of any hearing held in accordance
with the contested case provisions of the Uniform Administrative Procedures Act and in
which sanctions are imposed on any person or entity required to be licensed,
permitted, registered, or otherwise authorized by ABC;
o Such costs may include, but are not limited to, those incurred and assessed for the
time of the prosecuting attorneys, investigators, expert witnesses, administrative
judges and any other persons involved in the investigation, prosecution, and hearing
of the action;
o All costs assessed shall become final 30 days after the date a final order of
assessment is served; and
o If the individual or entity disciplined fails to pay an assessment when it becomes
final, ABC may apply to the Chancery Court of Davidson County for a judgment
and seek execution of the judgment.
• The proposed legislation authorizes a judge, hearing officer, or administrative judge to
award attorneys’ fees and costs incurred by a person or entity that prevails in such an
administrative or civil action brought against them by, or in challenging the actions of,
ABC.
• According to ABC:
o ABC has been a party to 63 docketed matters in the last four years. Five of these
cases were adjudicated before an administrative judge and the remainder were
resolved prior to a judicial hearing;
o Of the cases heard by the administrative judge, two parties prevailed over ABC but
only one asked for attorneys’ fees and costs against ABC. The judge did not award
such request because it did not meet statutory requirements; and
SB 835 - HB 904 2
o There have been four administrative appeals filed in the Chancery Court of
Davidson County, of which ABC lost only one. Court costs were assessed to the
other party, however, there was no motion for attorneys’ fees.
• Due to the low volume of contested cases and the frequency of which ABC is a party to an
applicable civil matter that is not resolved prior to a judicial hearing, it can be reasonably
assumed that if the number of contested cases increase and the presiding judge finds a
request meets the requisite statutory requirements, the increase in state expenditures to
ABC will be minimal.
• Any impact to the court system is anticipated to be minimal.
• Therefore, any fiscal impact to state expenditures is estimated to be not significant.
CERTIFICATION:
The information contained herein is true and correct to the best of my knowledge.
Bojan Savic, Executive Director