Tennessee: As wine in grocery stores looms, Tennessee alcohol head resigns

 

Source: The Tennessean

Dave Boucher

March 25, 2016

 

The sudden resignation of Tennessee’s top alcohol regulator Thursday stunned lawmakers and industry leaders, raising new questions about the state’s contentious transition to legal wine sales in grocery stores.

 

Tennessee Alcoholic Beverage Commission Executive Director Keith Bell’s abrupt departure comes as hundreds of retailers are relying on the ABC to process their applications to sell wine this summer. Additionally, the person expected to replace him on a temporary basis also will leave the ABC at some point in April.

 

On July 1, grocery stores in Tennessee may start selling wine. It took a lengthy legislative fight to allow the sales, and it’s going to take a considerable amount of administrative work by the commission to oversee the regulatory aspects of the changes, said state Sen. Bill Ketron, R-Murfreesboro.

 

“It’s unfortunate that he’s resigning at this point, because of the need for stability in the department,” said Ketron, adding he was “shocked” at Bell’s resignation.

 

“We didn’t need any instability only 90 days away from implementation from that piece of legislation going into effect.”

 

Bell notified lawmakers and lobbyists of his decision in an email Thursday. In the email, obtained by The Tennessean, Bell gives few details as to the reason for his departure. He has been executive director of the agency since 2013.

 

“I have enjoyed my time with each of you and appreciate all your hard work. Keep up the good jobs y’all are doing and thank you,” Bell said in the email.

 

He did not immediately return a phone message left Friday.

 

Commission Assistant Director Gina Winfree is set to temporarily lead the commission, according to an announcement emailed by Nashville-based law firm Gullett Sanford Robinson & Martin, a firm with several attorneys and lobbyists who focus on alcohol-related issues. But Winfree won’t remain at the commission for long: She’s set to join GSRM as an attorney at some point in late April, according to the firm.

 

Still, Rob Ikard, president of the Tennessee Grocers & Convenience Store Association, believes there is a process in place that will help the ABC and stores prepare for July 1. During a December interview he told The Tennessean that “a lot of things are going to have to fall in place” for stores to start selling wine on schedule. Many of those issues have been resolved, or are in the process of being resolved, Ikard said Friday.

 

“It could cause some speed bumps. In general, we feel like there’s a well-designed process put in place and there’s sufficient continuity for the staff to move forward with the job they have to do,” Ikard said, adding Bell’s departure two or three months ago would have caused much larger problems.

 

“It’s an untimely distraction, for sure.”

 

Ikard said several hundred applications have already gone to the ABC, and “many are clearing the completion of the review process.”

 

Matt Scanlan, a lobbyist for GSRM who specializes in alcoholic beverage law, agreed with Ikard that Bell’s departure won’t drastically affect the wine and grocery store rollout.

 

“We feel very much like we’re in the final stretches of getting this implemented.

 

“If somebody has suggested wine and grocery stores is not ready to go and that’s one of the reasons Keith has resigned, I just don’t think that’s true.”

 

The ABC both licenses and provides permits for alcohol sales and enforces penalties for providers who violate laws and regulations. But in recent years, under Bell’s leadership, some in the industry thought the commission focused too much on enforcement and not enough on helping the businesses that sell alcohol.

 

“Hopefully, the administration and the board will find a new director with a strong administrative and enforcement background, but someone who will not be as egregious in punitive fines for all sectors of the industry,” said Randy Rayburn, a longtime Nashville restaurant executive who owns Midtown Cafe and Cabana.

 

Leading the ABC is a tough position that easily puts a person at odds with different parts of the industry, said Nashville attorney Will Cheek. Although Cheek, a food and beverage attorney at Bone  McAllester Norton, said Bell leaves big shoes to fill, he said the departure may signal the ABC isn’t ready for the influx of applications.

 

“He may have left now before the train wreck happens,” Cheek said.

 

“I think that with all the licenses that are going to have to be approved with wine and grocery stores … I could see the process just not working. Come July 1, the ABC will simply not have enough people to train all the clerks and  manager for all the stores.”

 

Ketron projected at least 500 stores seeking licenses, while Cheek estimated 1,000 will want to sell wine by July 1. As Cheek noted, grocery store clerks and managers also need special training and approval to sell wine, a process the ABC is supposed to oversee.

 

“It’s possible the director said, ‘You know what, it’s not possible and I’m not going to be the one who gets blamed for it,’ ” Cheek said.

 

Lawmakers continue to battle over legislation that may allow grocery stores to purchase wine ahead of July 1, so that they can immediately start sales once they’re legal.