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Bill > S476


NJ S476

NJ S476
Removes two plenary retail distribution license limit for certain food stores and liquor stores.


summary

Introduced
In Committee
Crossed Over
Passed
Dead

Introduced Session

2010-2011 Regular Session

Bill Summary

Currently, the law prohibits any person or corporate entity from holding more than two retail licenses to sell alcoholic beverages. The bill allows licensees to hold more than two plenary retail distribution licenses when the license or licenses are used only for the sale of beer and wine, and in connection with the operation of a food store, or in connection with the operation of a liquor store when the licensee certifies that at least 90 percent of the stores inventory is to be beer and wine. The bill stipulates that a licensee who acquires additional plenary retail distribution licenses is prohibited from acquiring or owning all or part of an interest in more than 10 percent of all plenary retail distribution licenses issued in this State. The bill also prohibits the acquisition of an additional plenary retail distribution license or licenses for use in connection with a food or liquor store located in any municipality wherein an urban enterprise zone is designated. Further, the bill sets certain safeguards against underage drinking by requiring that food stores sell beer and wine in a separate premise that is situated directly adjacent to the food store, and prohibits food stores from selling beer and wine on the floor area where groceries or other food stuffs are sold. The bill requires that areas designated for selling beer and wine have a separate entrance and exit, but allows for a doorway that leads directly to and from the food store floor area. A separate cash register that is programmed to remind the cashier to request that a purchaser show proper identification is also required under the bill. The bill provides that food stores which sold alcoholic beverages prior to the enactment of the bill would still be able to sell alcoholic beverages in the food store floor area. Finally, the bill specifies that licensees who acquire additional plenary retail distribution licenses are required to pay a license transfer fee on each license that they acquire. The transfer fee is set at 10 percent of the amount that the licensee paid for the license and is payable to the local police department of the municipality in which the licensed premises is located, or if the municipality does not have a local police department, to the Superintendent of State Police. The amount paid by the licensee to the local police department or to the Superintendent of State Police is to be used to enforce the intoxicated driving statutes and for law enforcement initiatives to prevent underage drinking.

AI Summary

This bill modifies existing laws to allow certain food stores and liquor stores to hold more than the current limit of two licenses to sell alcoholic beverages, specifically for beer and wine. A "plenary retail distribution license" is a license that allows the sale of alcoholic beverages for off-premises consumption. Under this bill, a food store can obtain additional licenses if at least 75% of its total annual sales come from groceries and food items, and a liquor store can obtain additional licenses if at least 90% of its inventory is beer and wine. However, any licensee acquiring more than two such licenses is prohibited from owning more than 10% of all such licenses issued in the state and cannot obtain them for stores located in designated "urban enterprise zones," which are areas intended for economic revitalization. The bill also introduces safeguards against underage drinking for food stores selling beer and wine, requiring these sales to occur in a separate area adjacent to the main food store, with its own entrance, exit, and a dedicated cash register programmed to prompt cashiers to check identification. Existing food stores that sold alcohol before this bill's enactment are exempt from these new separation requirements. Finally, licensees acquiring additional licenses must pay a "license transfer fee" equal to 10% of the purchase price of each license, which will be used by local police or the State Police to enforce laws against drunk driving and prevent underage drinking.

Committee Categories

Business and Industry

Sponsors (1)

Last Action

Withdrawn from Consideration (on 03/11/2010)

bill text


bill summary

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bill summary

Document Type Source Location Created
Bill https://www.njleg.state.nj.us/2010/Bills/S0500/476_I1.HTM 05/28/2012
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