Chattanooga beer board approves one-time 30-day renewal extension after permitting software errors

The Chattanooga Beer Board voted March 20 to allow holders of beer permits that were valid on Dec. 31, 2024, a one-time, 30-day grace period to renew without filing a new application, after city staff discovered clerical errors in a recently adopted permit software system.

The order, approved by roll call at the board's regularly scheduled meeting, applies to any person or entity that held a valid beer permit for 2024 and allows renewal “solely upon payment of any outstanding fees and without having to apply for a new permit” for the 30-day period beginning March 20 and ending April 19, 2025. Assistant City Attorney Harold De Bryson and administration staff presented the procedural matter; administration staff read the order into the record and said the problem stemmed from erroneous deadline dates created by the new treasury software.

Why it matters: Board members and city staff said the software error put law-abiding small businesses at risk of having to stop selling alcohol through no fault of their own. Administration staff said Mayor Kelly asked for a remedy to prevent economic harm to affected businesses and keep them operating within the law.

At the meeting, administration staff said the finance department’s new treasury permit software produced at least some notices with erroneous renewal deadlines or failed to send notices. “Mayor Kelly is very concerned about this,” administration staff said while asking the board to approve the order. The order cites section 5-48 of Ordinance No. 14,090 (adopted by Chattanooga City Council on March 12, 2024) as the authority governing beer permits and explains the extension is “necessary due to clerical issues” involving erroneously listed renewal deadlines.

Board members asked for clarifications on scope and remedies. The board heard that some businesses had been shown incorrect renewal dates and that, as of the meeting, staff had identified several affected accounts. Administration staff said the treasury office had sent renewal notices earlier in the day to four businesses the city already knew about and that staff had identified 14 additional businesses that had been denied a renewal but had not yet started a new permit application; those 14 would be sent renewal notices the same day. Administration staff also told the board that if an applicant had already paid for a new application because of the error, the city could refund the excess fee administratively and process a renewal instead.

The board made a motion to approve the order from the mayor’s office granting the 30-day renewal extension; a roll call recorded affirmative votes from Miss Barclay, Miss Dunson, Mr. Washington, Miss Hartman, Mr. Ashley and Temporary Chair Ronnie Smith. The motion passed and the order was entered as effective immediately and expiring on April 19, 2025.

Board and staff members discussed next steps to prevent a recurrence. Administration staff said they were meeting with the regulatory and treasury units the following day to review the process and explore changes (for example, allowing permit holders to check a box in OpenGov to confirm no changes in ownership or violations and to renew more simply). Staff also said they would issue a press release notifying businesses and media outlets about the board’s action and the steps to come into compliance during the 30-day period.

The board’s action does not change underlying ordinance text; it is a temporary administrative extension limited in time and scope and tied to payment of outstanding fees. The order, as read into the record, specifically applies only to permits that were valid as of Dec. 31, 2024, and does not create a standing change to the city’s permitting rules.

The board directed staff to follow up with the treasurer’s office about outreach and to pursue administrative refunds where appropriate. Administration staff said they would return to the board (or take staff-level steps) as needed after the internal review.

Votes at a glance: The Beer Board approved the mayor’s office order granting a one-time, 30-day renewal extension for holders of 2024 beer permits (effective March 20, 2025–April 19, 2025). Recorded roll call: Miss Barclay — yes; Miss Dunson — yes; Mr. Washington — yes; Miss Hartman — yes; Mr. Ashley — yes; Temporary Chair Ronnie Smith — yes.

A copy of the order as read into the record is part of the meeting file; it references section 5-48 of Ordinance No. 14,090 (03/12/2024) and describes the extension as necessary because of clerical errors in the city’s permit application software.