Bill > S3675

Introduced Session

This bill makes various revisions to the law governing the sale of alcoholic beverages in this State. The bill grants privileges to the holders of certain craft alcoholic beverage manufacturer licenses. Under the bill, a holder of a limited brewery, plenary winery, farm winery, craft distillery, and cidery and meadery license would be entitled to sell food and hold certain activities and events both on and off the licensed premises. Specifically, the bill allows craft alcoholic manufacturer licensees to sell non-alcoholic beverages and food or operate a restaurant on the licensed premises. The bill also allows these craft alcoholic beverage manufacturers to coordinate with any food vendor, including food trucks, to provide food on the licensed premises or at off-premises events. These craft alcoholic beverage manufacturers also would be entitled to participate in an unlimited number of off-premises events, including private parties, festivals, and tasting events, subject to a permit obtained from the Division of Alcoholic Beverage Control (ABC). Under the bill, craft alcoholic beverage manufacturers also would be entitled to hold an unlimited number of events on licensed premises that are scheduled in advance of the event and limited by invitation or open to the general public. The bill also allows craft alcoholic beverage manufacturers to hold private parties on and off the licensed premises. Under the bill, the host of a private party would be entitled to provide any alcoholic beverage, including alcoholic beverages which are not produced by the license holder, provided the host is not the licensee and the licensee consents to the provision of other alcoholic beverages. A social affairs permit holder or host of a private party, held on or off the licensed premises, may hire an employee of the craft manufacturer to pour alcoholic beverages produced on the licensed premises and provide educational commentary about the alcoholic beverages produced on the licensed premises. The bill also allows these craft alcoholic beverage manufacturers to hold "happy hours" and sell suitable gift items and novelty wearing apparel identified with the name of the holder of the license. The bill also removes from current law the tour requirement for limited brewery and craft distillery license holders. Under current law, these licensees are authorized to sell their products at retail to consumers on the licensed premises for on-site consumption, but only in connection with a tour of the brewery or distillery. Under this bill, consumers would not be required to take a tour of the brewery or distillery to purchase beverages for on-site consumption. The bill also allows the holder of a restricted brewery license to convert the license into a limited brewery license in exchange for a fee established by the ABC. Under current law, a restricted brewery license is only issued to a person who also holds a Class C consumption license, which are generally issued to bars and restaurants. The restricted brewery license allows the licensee to brew the beer, while the Class C license allows the licensee to sell that beer directly to restaurant patrons. This bill allows the holder of a restricted brewery license to convert the license into a limited brewery license, allowing the licensee to sell food or operate a restaurant under the bill. The bill also clarifies that craft distillery licensees are entitled to sell cocktails mixed with non-alcoholic beverages, mixers, or garnishing. In addition, the bill removes from current statutory law the fees paid by craft alcoholic beverage manufacturers and provides that the fee schedule is to be set by rules and regulations promulgated by the ABC. In addition, this bill allows for the issuance of additional plenary retail and seasonal retail consumption licenses, which allow for the consumption of alcoholic beverages on the licensed premises. Under current law, a municipality may issue plenary retail and seasonal retail consumption licenses until the combined total number in the municipality is fewer than one license for each 3,000 municipal residents. Because of this restriction, there is a shortage of these licenses in some municipalities. This bill addresses this shortage by allowing the incremental issuance of additional plenary retail consumption licenses over the course of a five year period, after which time the population restriction would no longer exist. The population restriction imposed on the issuance of additional licenses would be adjusted as follows: · on and after January 1, 2024 but prior to January 1, 2025, the combined total number of licenses existing in the municipality is to be fewer than one for each 2,700 of its population;· on and after January 1, 2025 but prior to January 1, 2026, the combined total number of licenses existing in the municipality is to be fewer than one for each 2,430 of its population;· on and after January 1, 2026 but prior to January 1, 2027, the combined total number of licenses existing in the municipality is to be fewer than one for each 2,187 of its population;· on and after January 1, 2027 but prior to January 1, 2028, the combined total number of licenses existing in the municipality is to be fewer than one for each 1,968 of its population;· on and after January 1, 2028 but prior to January 1, 2029, the combined total number of licenses existing in the municipality is fewer than one for each 1,771 of its population; and· on and after January 1, 2029, there is to be no limitation on the combined total number of plenary retail consumption or seasonal retail consumption licenses existing in a municipality. In addition, the bill makes certain revisions to the fees paid by plenary retail consumption license holders and the public notice requirements and procedure to issue additional plenary retail consumption licenses. The bill also changes the procedure for renewing an inactive Class C license. Under current law, an inactive Class C license is a retail license that is not being used at an open and operating licensed premise. A licensee is required to place the license on " inactive status" when the licensed business ceases operation and the license continues to be held by the licensee of record. A municipality may renew an inactive license annually for up to two years following the date it became inactive. If the license has been inactive for more than two years, the licensee is required to file a petition to maintain possession of the license with the Director of the Division of ABC. Under this bill, a municipality would have the authority to renew an inactive Class C license to sell alcoholic beverages regardless of whether the license has been actively used in connection with the operation of a licensed premises. In addition, the bill allows a municipality to deny the renewal of an inactive Class C license if the license holder has not made a good faith effort to actively use the license. This bill removes from current law the director's authority to grant petitions to renew inactive Class C licenses and grants the authority to municipalities to renew these licenses regardless of whether the license is actively used in connection with a premises. Under the bill, the governing municipal board or body also may deny a license renewal application if it finds that the license holder has not made a good faith effort to resume active use of the license. A municipal board or body would be prohibited from denying an application for renewal by a licensee who establishes by affidavit that the licensee has been deprived of the use of the licensed premises as a result of eminent domain or fire or other casualty. The bill allows a municipal board or body that denies a license renewal to reissue the license at public sale in accordance with current law. Finally, the bill provides a tax credit to persons and entities that held a plenary retail consumption license on or prior to the bill's date of enactment. The tax credit would be issued based on taxable sales made on the licensed premises in the three years preceding the bill's date of enactment. Under the bill, a plenary retail consumption license holder who, on the bill's effective date, had taxable sales in any one of the three preceding calendar years at the licensed premises which: · did not exceed $1,500,000 would be allowed a tax credit in the amount of $50,000;· was between $1,500,000 and $2,900,000 would be allowed a tax credit in the amount of $40,000; and· exceeded $2,900,000 would be allowed a tax credit in the amount of $30,000. It is the sponsor's intent to create new market opportunities, foster economic growth and development, and encourage New Jersey's flourishing alcoholic beverage industry and its contribution to the local economy by making more retail licenses available and granting additional privileges to this State's alcoholic beverage manufacturing license holders.

Committee Categories

Gordon Johnson (D)*, 

Introduced in the Senate, Referred to Senate Law and Public Safety Committee (on 02/28/2023)

Official Document