Bill > S2105

Introduced Session

This bill permits municipalities to assess certain costs against an alcoholic beverage retail licensee who violates a statute, regulation, or municipal ordinance. Specifically, the bill permits a municipal issuing authority to assess and retain the costs and attorney's fees it incurred pursuing disciplinary charges against a licensee. These fees may be assessed when (1) the municipal issuing authority issues charges, holds a disciplinary hearing, and determines that the licensee has violated a statute, regulation, or municipal ordinance, or (2) the municipal issuing authority and the licensee enter into a settlement agreement after issuance of the charges, and the licensee concedes liability. Under the provisions of this bill, the municipal issuing authority is to determine the costs and fees and inform the licensee in writing of the amount assessed and the basis for the assessment. If the licensee objects to the amount of the assessment, the licensee is required to file an appeal of the assessment within 10 days after receipt of the assessment. The bill provides that the municipal issuing authority is to make a final determination within 30 days after receiving the licensee's appeal in writing, or at its next regularly scheduled meeting if that is more than 30 days after receipt of the appeal. The bill permits the licensee to appeal the final determination to the Director of the Division of Alcoholic Beverage Control in the Department of Law and Public Safety. In order to facilitate settlement of the charges, and to reduce costs for all parties, the bill also provides that if the municipal issuing authority and the licensee resolve the charges against the licensee after issuance of the charges, the municipal issuing authority and the licensee may agree to a specific assessment. Finally, the bill provides that any assessment by a municipal issuing authority for costs and attorney's fees would be paid directly to that municipal issuing authority and is not to be included in any monetary payment to the director as an offer in compromise. The director, in his discretion, is authorized to accept such offers from licensees in an amount the director deems proper in lieu of a license suspension by the director or any other issuing authority. Under current law, municipalities are charged with the primary authority to regulate alcoholic beverage licenses for retail sales which are issued in that municipality. These are the licenses issued generally to restaurants, bars, and liquor stores. While municipalities bear much of the expense in investigating and prosecuting charges brought against licensees for violations, they are not authorized to impose or collect fees to offset the substantial costs of prosecution. If a licensee appeals a suspension imposed by the municipality to the Director of the Division of Alcoholic Beverage Control, the director may convert the suspension into a monetary penalty which is paid to the division for deposit into the State's general fund. Current law (R.S.33:1-12) permits municipalities to require licensees to pay an annual license fee, which is established by ordinance and may range from $250 to $2,500, to mitigate the expenses of administering their licenses. According to the sponsor, increasing this fee would pass the cost of prosecuting violators on to all licensees, including the majority who comply with all statutes, regulations and ordinances.

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Joe Vitale (D)*, 

Introduced in the Senate, Referred to Senate Law and Public Safety Committee (on 03/16/2020)