Bill Text: NJ A1425 | 2024-2025 | Regular Session | Introduced

New Jersey Assembly Bill 1425

Introduced

Bill Title: Makes various revisions to alcoholic beverage licensing laws pertaining to certain retailers and manufacturers; provides tax credit under corporate business tax and gross income tax to certain retail licensees.

Spectrum: Partisan Bill (Democrat 3-0)

Status: (Introduced) 2024-01-09 - Introduced, Referred to Assembly Oversight, Reform and Federal Relations Committee [A1425 Detail]

Download: New_Jersey-2024-A1425-Introduced.html

ASSEMBLY, No. 1425

STATE OF NEW JERSEY

221st LEGISLATURE

PRE-FILED FOR INTRODUCTION IN THE 2024 SESSION

Sponsored by:

Assemblywoman SHAMA A. HAIDER

District 37 (Bergen)

Assemblywoman ELLEN J. PARK

District 37 (Bergen)

Co-Sponsored by:

Assemblywoman Reynolds-Jackson

SYNOPSIS

Makes various revisions to alcoholic beverage licensing laws pertaining to certain retailers and manufacturers; provides tax credit under corporate business tax and gross income tax to certain retail licensees.

CURRENT VERSION OF TEXT

Introduced Pending Technical Review by Legislative Counsel.

An Act concerning certain alcoholic beverage licenses, establishing tax credits, and amending and supplementing various parts of the statutory law.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. R.S.33:1-10 is amended to read as follows:

33:1-10. Class A licenses shall be subdivided and classified as follows:

Plenary brewery license 1a. The holder of this license shall be entitled, subject to rules and regulations, to brew any malt or malt substitute alcoholic beverages and to sell and distribute his products to wholesalers and retailers licensed in accordance with this chapter, and to sell and distribute without this State to any persons pursuant to the laws of the places of such sale and distribution, and to maintain a warehouse; provided, however, that the delivery of this product by the holder of this license to retailers licensed under this title shall be from inventory in a warehouse located in this State which is operated under a plenary brewery license. The fee for this license shall be $10,625.

Limited brewery license 1b. The holder of this license shall be entitled, subject to rules and regulations, to brew any malt or malt substitute alcoholic beverages in a quantity to be expressed in said license, dependent upon the following fees and not in excess of 300,000 barrels of 31 fluid gallons capacity per year and to sell and distribute this product to wholesalers and retailers licensed in accordance with this chapter, and to sell and distribute without this State to any persons pursuant to the laws of the places of such sale and distribution, and to maintain a warehouse; provided, however, that the delivery of this product by the holder of this license to retailers licensed under this title shall be from inventory in a warehouse located in this State which is operated under a limited brewery license. The holder of this license shall be entitled to sell this product at retail to consumers on the licensed premises of the brewery for consumption on the premises [, but only in connection with a tour of the brewery,] or [for consumption off the premises] in a quantity of not more than 15.5 fluid gallons per person for consumption off the premises, and to offer [samples for sampling purposes only pursuant to an annual permit issued by the director] any person not more than four three-ounce samples per calendar day for sampling purposes only. The holder of this license may sell "happy hour" or specially priced malt or malt substitute alcoholic beverages produced by the licensee on the licensed premises. If the

to so brew not more than 50,000 barrels of 31 liquid gallons capacity per annum, $1,250;

to so brew not more than 100,000 barrels of 31 fluid gallons capacity per annum, $2,500;

to so brew not more than 200,000 barrels of 31 fluid gallons capacity per annum, $5,000;

to so brew not more than 300,000 barrels of 31 fluid gallons capacity per annum, $7,500] set by the director by rules and regulations and graduated based on the number of barrels produced by the licensee per annum.

For the purposes of this subsection, "sampling" means the selling at a nominal charge or the gratuitous offering of an open container not exceeding four [ounces] three-ounce samples of any malt or malt substitute alcoholic beverage. For the purposes of this subsection, "product" means any malt or malt substitute alcoholic beverage that is produced on the premises licensed under this subsection.

Restricted brewery license. 1c. The holder of this license shall be entitled, subject to rules and regulations, to brew any malt or malt substitute alcoholic beverages in a quantity to be expressed in such license not in excess of 10,000 barrels of 31 gallons capacity per year. Notwithstanding the provisions of R.S.33:1-26, the director shall issue a restricted brewery license only to a person or an entity which has identical ownership to an entity which holds a plenary retail consumption license issued pursuant to R.S.33:1-12, provided that such plenary retail consumption license is operated in conjunction with a restaurant regularly and principally used for the purpose of providing meals to its customers and having adequate kitchen and dining room facilities, and that the licensed restaurant premises is immediately adjoining the premises licensed under this subsection. The holder of this license shall be entitled to sell or deliver the product to that restaurant premises. The holder of this license also shall be entitled to sell and distribute the product to wholesalers licensed in accordance with this chapter. The fee for this license shall be $1,250, which fee shall entitle the holder to brew up to 1,000 barrels of 31 liquid gallons per annum. The licensee also shall pay an additional $250 for every additional 1,000 barrels of 31 fluid gallons produced. The fee shall be paid at the time of application for the license, and additional payments based on barrels produced shall be paid within 60 days following the expiration of the license term upon certification by the licensee of the actual gallons brewed during the license term. No more than 10 restricted brewery licenses shall be issued to a person or entity which holds an interest in a plenary retail consumption license. If the governing body of the municipality in which the licensed premises will be located should file a written objection, the director shall hold a hearing and may issue the license only if the director finds that the issuance of the license will not be contrary to the public interest. All fees related to the issuance of both licenses shall be paid in accordance with statutory law. The provisions of this subsection shall not be construed to limit or restrict the rights and privileges granted by the plenary retail consumption license held by the holder of the restricted brewery license issued pursuant to this subsection.

The holder of this license shall be entitled to offer samples of its product for promotional purposes at charitable or civic events off the licensed premises pursuant to an annual permit issued by the director.

Following the effective date of P.L. , c. (pending before the Legislature as this bill), the holder of this license may convert this license to a limited brewery license for a fee to be set by, and payable to, the director pursuant to rule or regulation.

For the purposes of this subsection, "sampling" means the selling at a nominal charge or the gratuitous offering of an open container not exceeding four [ounces] three-ounce samples of any malt or malt substitute alcoholic beverage product. For the purposes of this subsection, "product" means any malt or malt substitute alcoholic beverage that is produced on the premises licensed under this subsection.

Plenary winery license. 2a. Provided that the holder is engaged in growing and cultivating grapes or fruit used in the production of wine on at least three acres on, or adjacent to, the winery premises, the holder of this license shall be entitled, subject to rules and regulations, to produce any fermented wines, and to blend, fortify and treat wines, and to sell and distribute his products to wholesalers licensed in accordance with this chapter and to churches for religious purposes, and to sell and distribute without this State to any persons pursuant to the laws of the places of such sale and distribution, and to maintain a warehouse, and to sell his products at retail to consumers on the licensed premises of the winery for consumption on or off the premises and to offer any person not more than four one-and-one-half ounce samples per calendar day for sampling purposes only. The holder of this license may sell "happy hour" or specially priced wines produced by the licensee on the licensed premises. The holder of this license may sell non-alcoholic beverages, sell food or operate a restaurant on the licensed premises, or may coordinate with any food vendor, including food trucks, for the provision of food on the licensed premises or at off-premises events. The holder of this license may participate in an unlimited number of off-premises events, including private parties, festivals, and tasting events, subject to obtaining a permit from the director. The holder of this license may also hold an unlimited number of events on the licensed premises, which shall be scheduled in advance and may be limited by invitation or open to the general public. Subject to the consent of the holder of this license, a host of a private event held on the licensed premises, except when the host is the holder of this license, may bring the host's own wine and malt or malt substitute alcoholic beverages not produced on the licensed premises to the event. A social affair permit holder or host of a private party, held on or off the licensed premises, may hire an employee of the holder of this license to pour any wine that is produced on the licensed premises and to provide educational commentary about the wine that is produced on the licensed premises. The holder of this license may offer for sale suitable gift items and novelty wearing apparel identified with the name of the holder of this license.

The fee for this license shall be [$938] set by the director by rules and regulations. A holder of this license who produces not more than 250,000 gallons per year shall also have the right to sell and distribute his products to retailers licensed in accordance with this chapter, except that the holder of this license shall not use a common carrier for such distribution. The fee for this additional privilege shall be [graduated as follows: a licensee who manufactures more than 150,000 gallons, but not in excess of 250,000 gallons per annum, $1,000; a licensee who manufactures more than 100,000 gallons, but not in excess of 150,000 gallons per annum, $500; a licensee who manufactures more than 50,000 gallons, but not in excess of 100,000 gallons per annum, $250; a licensee who manufactures 50,000 gallons or less per annum, $100] set by the director by rules and regulations and graduated based on the number of gallons produced by the licensee per annum. A holder of this license who produces not more than 250,000 gallons per year shall have the right to sell such wine at retail in original packages in 15 salesrooms apart from the winery premises for consumption on or off the premises and for sampling purposes for consumption on the premises, at a fee [of $250] set by the director by rules and regulations for each salesroom. Licensees shall not jointly control and operate salesrooms. Additionally, the holder of this license who produces not more than 250,000 gallons per year may ship not more than 12 cases of wine per year, subject to regulation, to any person within or without this State over 21 years of age for personal consumption and not for resale. A case of wine shall not exceed a maximum of nine liters. A copy of the original invoice shall be available for inspection by persons authorized to enforce the alcoholic beverage laws of this State for a minimum period of three years at the licensed premises of the winery. For the purposes of this subsection, "sampling" means the selling at a nominal charge or the gratuitous offering of an open container not exceeding four one and one-half ounces of any wine.

A holder of this license who produces not more than 250,000 gallons per year shall not own, either in whole or in part, or hold, either directly or indirectly, any interest in a winery that produces more than 250,000 gallons per year. In addition, a holder of this license who produces more than 250,000 gallons per year shall not own, either in whole or in part, or hold, either directly or indirectly, any interest in a winery that produces not more than 250,000 gallons per year. For the purposes of this subsection, "product" means any wine that is produced, blended, fortified, or treated by the licensee on its licensed premises situated in the State of New Jersey. For the purposes of this subsection, "wine" shall include "hard cider" and "mead" as defined in this section.

Farm winery license. 2b. The holder of this license shall be entitled, subject to rules and regulations, to manufacture any fermented wines and fruit juices in a quantity to be expressed in said license, dependent upon the following fees and not in excess of 50,000 gallons per year and to sell and distribute his products to wholesalers and retailers licensed in accordance with this chapter and to churches for religious purposes and to sell and distribute without this State to any persons pursuant to the laws of the places of such sale and distribution, and to maintain a warehouse and to sell at retail to consumers for consumption on or off the licensed premises and to offer any person not more than four one and one-half ounce samples per calendar day for sampling purposes only. The holder of this license may permit "happy hour" or specially priced wines produced by the licensee to be sold on the licensed premises. The holder of this license may sell non-alcoholic beverages, sell food or operate a restaurant on the licensed premises, or may coordinate with any food vendor, including food trucks, for the provision of food on the licensed premises or at off-premises events. The holder of this license may participate in an unlimited number of off-premises events, including private parties, festivals, and tasting events, subject to obtaining a permit from the director. The holder of this license may also hold an unlimited number of events on the licensed premises, which shall be scheduled in advance and may be limited by invitation or open to the general public. Subject to the consent of the holder of this license, a host of a private event held on the licensed premises, except when the host is the holder of this license, may bring the host's own wine and malt or malt substitute alcoholic beverages not produced on the licensed premises to the event. A social affair permit holder or host of a private party, held on or off the licensed premises, may hire an employee of the holder of this license to pour any wine that is produced on the licensed premises and to provide educational commentary about the wine that is produced on the licensed premises. The holder of this license may offer for sale suitable gift items and novelty wearing apparel identified with the name of the holder of this license.

The license shall be issued only when the winery at which such fermented wines and fruit juices are manufactured is located and constructed upon a tract of land exclusively under the control of the licensee, provided that the licensee is actively engaged in growing and cultivating an area of not less than three acres on or adjacent to the winery premises and on which are growing grape vines or fruit to be processed into wine or fruit juice; and provided, further, that for the first five years of the operation of the winery such fermented wines and fruit juices shall be manufactured from at least 51 percent grapes or fruit grown in the State and that thereafter they shall be manufactured from grapes or fruit grown in this State at least to the extent required for labeling as "New Jersey Wine" under the applicable federal laws and regulations. The containers of all wine sold to consumers by such licensee shall have affixed a label stating such information as shall be required by the rules and regulations of the Director of the Division of Alcoholic Beverage Control. The fee for this license shall be [graduated as follows: to so manufacture between 30,000 and 50,000 gallons per annum, $375; to so manufacture between 2,500 and 30,000 gallons per annum, $250; to so manufacture between 1,000 and 2,500 gallons per annum, $125; to so manufacture less than 1,000 gallons per annum, $63] set by the director by rules and regulations and graduated based on the number of gallons produced by the licensee per annum. No farm winery license shall be held by the holder of a plenary winery license or be situated on a premises licensed as a plenary winery.

The holder of this license shall also have the right to sell and distribute his products to retailers licensed in accordance with this chapter, except that the holder of this license shall not use a common carrier for such distribution. The fee for this additional privilege shall be [$100] set by the director by rules and regulations. The holder of this license shall have the right to sell his products in original packages at retail to consumers in 15 salesrooms apart from the winery premises for consumption on or off the premises, and for sampling purposes for consumption on the premises, at a fee [of $250] set by the director through rules and regulations for each salesroom. Licensees shall not jointly control and operate salesrooms. Additionally, the holder of this license may ship not more than 12 cases of wine per year, subject to regulation, to any person within or without this State over 21 years of age for personal consumption and not for resale. A case of wine shall not exceed a maximum of nine liters. A copy of the original invoice shall be available for inspection by persons authorized to enforce the alcoholic beverage laws of this State for a minimum period of three years at the licensed premises of the winery. For the purposes of this subsection, "sampling" means the selling at a nominal charge or the gratuitous offering of an open container not exceeding four one and one-half ounces of any wine.

Unless otherwise indicated, for the purposes of this subsection, with respect to farm winery licenses, "manufacture" means the vinification, aging, storage, blending, clarification, stabilization and bottling of wine or juice from New Jersey fruit to the extent required by this subsection.

For the purposes of this subsection, "wine" shall include "hard cider" and "mead" as defined in this section.

Wine blending license. 2c. The holder of this license shall be entitled, subject to rules and regulations, to blend, treat, mix, and bottle fermented wines and fruit juices with non-alcoholic beverages, and to sell and distribute his products to wholesalers and retailers licensed in accordance with this chapter, and to sell and distribute without this State to any persons pursuant to the laws of the places of such sale and distribution, and to maintain a warehouse. The fee for this license shall be $625.

For the purposes of this subsection, "wine" shall include "hard cider" and "mead" as defined in this section.

Instructional winemaking facility license. 2d. The holder of this license shall be entitled, subject to rules and regulations, to instruct persons in and provide them with the opportunity to participate directly in the process of winemaking and to directly assist such persons in the process of winemaking while in the process of instruction on the premises of the facility. The holder of this license also shall be entitled to manufacture wine on the premises not in excess of an amount of 10 percent of the wine produced annually on the premises of the facility, which shall be used only to replace quantities lost or discarded during the winemaking process, to maintain a warehouse, and to offer samples produced by persons who have received instruction in winemaking on the premises by the licensee for sampling purposes only on the licensed premises for the purpose of promoting winemaking for personal or household use or consumption. Wine produced on the premises of an instructional winemaking facility shall be used, consumed or disposed of on the facility's premises or distributed from the facility's premises to a person who has participated directly in the process of winemaking for the person's personal or household use or consumption. The holder of this license may sell mercantile items traditionally associated with winemaking and novelty wearing apparel identified with the name of the establishment licensed under the provisions of this section. The holder of this license may use the licensed premises for an event or affair, including an event or affair at which a plenary retail consumption licensee serves alcoholic beverages in compliance with all applicable statutes and regulations promulgated by the director. The fee for this license shall be $1,000. For the purposes of this subsection, "sampling" means the gratuitous offering of an open container not exceeding four one and one-half ounces samples of any wine per calendar day.

For the purposes of this subsection, "wine" shall include "hard cider" and "mead" as defined in this section.

Out-of-State winery license. 2e. Provided that the applicant does not produce more than 250,000 gallons of wine per year, the holder of a valid winery license issued in any other state may make application to the director for this license. The holder of this license shall have the right to sell and distribute his products to wholesalers licensed in accordance with this chapter and to sell such wine at retail in original packages in 16 salesrooms apart from the winery premises for consumption on or off the premises at a fee [of $250] set by the director by rules and regulations for each salesroom. Licensees shall not jointly control and operate salesrooms. The annual fee for this license shall be [$938] set by the director by rules and regulations. A copy of a current license issued by another state shall accompany the application. The holder of this license also shall have the right to sell and distribute his products to retailers licensed in accordance with this chapter, except that the holder of this license shall not use a common carrier for such distribution. The fee for this additional privilege shall be [graduated as follows: a licensee who manufactures more than 150,000 gallons, but not in excess of 250,000 gallons per annum, $1,000; a licensee who manufactures more than 100,000 gallons, but not in excess of 150,000 gallons per annum, $500; a licensee who manufactures more than 50,000 gallons, but not in excess of 100,000 gallons per annum, $250; a licensee who manufactures 50,000 gallons or less per annum, $100] set by the director through rules and regulations and graduated based on the number of gallons produced by the licensee per annum. Additionally, the holder of this license may ship not more than 12 cases of wine per year, subject to regulation, to any person within or without this State over 21 years of age for personal consumption and not for resale. A case of wine shall not exceed a maximum of nine liters. A copy of the original invoice shall be available for inspection by persons authorized to enforce the alcoholic beverage laws of this State for a minimum period of three years at the licensed premises of the winery.

The licensee shall collect from the customer the tax due on the sale pursuant to the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-1 et seq.) and shall pay the tax due on the delivery of alcoholic beverages pursuant to the "Alcoholic beverage tax law," R.S.54:41-1 et seq. The Director of the Division of Taxation in the Department of the Treasury shall promulgate such rules and regulations necessary to effectuate the provisions of this paragraph, and may provide by regulation for the co-administration of the tax due on the delivery of alcoholic beverages pursuant to the "Alcoholic beverage tax law," R.S.54:41-1 et seq. with the administration of the tax due on the sale pursuant to the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-1 et seq.).

For the purposes of this subsection, "wine" shall include "hard cider" and "mead" as defined in this section.

Cidery and meadery license. 2f. The holder of this license shall be entitled, subject to rules and regulations, to manufacture hard cider and mead and to sell and distribute these products to wholesalers and retailers licensed in accordance with this chapter, and to sell and distribute without this State to any persons pursuant to the laws of the places of such sale and distribution, and to maintain a warehouse. The holder of this license shall be entitled to sell these products at retail to consumers on the licensed premises for consumption on or off the premises and to offer any person not more than four one-and-one-half ounce samples per calendar day of either cider or mead for sampling purposes only. [The holder of this license shall be permitted to offer for sale or make the gratuitous offering of packaged crackers, chips, nuts, and similar snacks to consumers, but shall not operate a restaurant on the licensed premises.] The holder of this license may sell "happy hour" or specially priced hard ciders and meads produced by the licensee on the licensed premises. The holder of this license may sell non-alcoholic beverages, sell food or operate a restaurant on the licensed premises, or may coordinate with any food vendor, including food trucks, for the provision of food on the licensed premises or at off-premises events. The holder of this license may participate in an unlimited number of off-premises events, including private parties, festivals, and tasting events, subject to obtaining a permit from the director. The holder of this license may also hold an unlimited number of events on the licensed premises, which shall be scheduled in advance and may be limited by invitation or open to the general public. Subject to the consent of the holder of this license, a host of a private event held on the licensed premises, except when the host is the holder of this license, may bring the host's own wine and malt or malt substitute alcoholic beverages not produced on the licensed premises to the event. A social affair permit holder or host of a private party, held on or off the licensed premises, may hire an employee of the holder of this license to pour any hard cider and mead that is produced on the licensed premises and to provide educational commentary about the hard cider and mead that is produced on the licensed premises. The holder of this license may offer for sale suitable gift items and novelty wearing apparel identified with the name of the holder of this license.

The fee for this license shall be [$938] set by the director by rules and regulations.

The holder of this license shall be entitled to manufacture hard cider in a quantity not to exceed 50,000 barrels of 31 fluid gallons capacity per year. With respect to the sale and distribution of hard cider to a wholesaler, the licensee shall be subject to the same statutory and regulatory requirements as a brewer, and hard cider shall be considered a malt or malt substitute alcoholic beverage, for the purposes of the "Malt Alcoholic Beverage Practices Act," P.L.2005, c.243 (C.33:1-93.12 et seq.). The holder of this license shall not directly ship hard cider either within or without this State.

The holder of this license shall be entitled to manufacture not more than 250,000 gallons of mead per year. The holder of this license may ship not more than 12 cases of mead per year, subject to regulation, to any person within or without this State over 21 years of age for personal consumption and not for resale. A case of mead shall not exceed a maximum of nine liters. A copy of the original invoice shall be available for inspection by persons authorized to enforce the alcoholic beverage laws of this State for a minimum period of three years at the licensed premises.

For the purposes of this subsection, "wine" shall include "hard cider" and "mead" as defined in this section.

As used in this subsection:

"Hard cider" means a fermented alcoholic beverage derived primarily from apples, pears, apple juice concentrate and water, or pear juice concentrate and water, which may include spices, herbs, honey, or other flavoring, and which contains at least one half of one percent but less than eight and one half percent alcohol by volume.

"Mead" means an alcoholic beverage primarily made from honey, water, and yeast, and which may contain fruit, fruit juices, spices, or herbs added before or after fermentation has completed, except that the ratio of fermentable sugars from fruit or fruit juices shall not exceed 49 percent of the total fermentable sugars used to produce mead.

"Sampling" means the selling at a nominal charge or the gratuitous offering of an open container not exceeding four [ounces] one and one-half ounce samples of hard cider or mead produced on the licensed premises.

Plenary distillery license. 3a. The holder of this license shall be entitled, subject to rules and regulations, to manufacture and bottle any distilled alcoholic beverages and rectify, blend, treat and mix, and to sell and distribute his products to wholesalers and retailers licensed in accordance with this chapter, and to sell and distribute without this State to any persons pursuant to the laws of the places of such sale and distribution, and to maintain a warehouse. The fee for this license shall be $12,500.

Limited distillery license. 3b. The holder of this license shall be entitled, subject to rules and regulations, to manufacture and bottle any alcoholic beverages distilled from fruit juices and rectify, blend, treat, mix, compound with wine and add necessary sweetening and flavor to make cordial or liqueur, and to sell and distribute to wholesalers and retailers licensed in accordance with this chapter, and to sell and distribute without this State to any persons pursuant to the laws of the places of such sale and distribution and to warehouse these products. The fee for this license shall be $3,750.

Supplementary limited distillery license. 3c. The holder of this license shall be entitled, subject to rules and regulations, to bottle and rebottle, in a quantity to be expressed in said license, dependent upon the following fees, alcoholic beverages distilled from fruit juices by such holder pursuant to a prior plenary or limited distillery license, and to sell and distribute his products to wholesalers and retailers licensed in accordance with this chapter, and to sell and distribute without this State to any persons pursuant to the laws of the places of such sale and distribution, and to maintain a warehouse. The fee for this license shall be graduated as follows: to so bottle and rebottle not more than 5,000 wine gallons per annum, $313; to so bottle and rebottle not more than 10,000 wine gallons per annum, $625; to so bottle and rebottle without limit as to amount, $1,250.

Craft distillery license. 3d. The holder of this license shall be entitled, subject to rules and regulations, to manufacture and bottle not more than 20,000 gallons of distilled alcoholic beverages, to rectify, blend, treat and mix distilled alcoholic beverages, to sell and distribute this product to wholesalers and retailers licensed in accordance with this chapter, and to sell and distribute without this State to any persons pursuant to the laws of the places of such sale and distribution, and to maintain a warehouse. The holder of this license shall be entitled to sell this product at retail to consumers on the licensed premises of the distillery for consumption on the premises [, but only in connection with a tour of the distillery,] and [for consumption off the premises] in a quantity of not more than five liters per person for consumption off the premises. Products sold at retail for consumption on the licensed premises may be mixed into a cocktail with non-alcoholic beverages, mixers, or garnishing. In addition, the holder of this license may offer any person not more than three samples per calendar day for sampling purposes only. For the purposes of this subsection, "sampling" means the gratuitous offering of an open container not exceeding three one-half ounce [serving] servings of distilled alcoholic beverage produced on the distillery premises, which may be mixed into a cocktail with non-alcoholic beverages, mixers, or garnishing. If the holder of this license holds a bonded warehouse bottling license issued pursuant to subsection 5 of this section, product manufactured in accordance with this subsection and transferred to a bonded warehouse for bottling and storage may be sold at retail and offered for sampling on the licensed premises of the distillery by the holder of this license. Nothing in this subsection shall be deemed to permit the direct shipment of distilled spirits either within or without this State.

The holder of this license may sell "happy hour" or specially priced cocktails with distilled spirits produced by the licensee on the licensed premises. The holder of this license [shall not sell food or operate a restaurant on the licensed premises] may sell non-alcoholic beverages, sell food or operate a restaurant on the licensed premises, or may coordinate with any food vendor, including food trucks, for the provision of food on the licensed premises or at off-premises events. The holder of this license may participate in an unlimited number of off-premises events, including private parties, festivals, and tasting events, subject to obtaining a permit from the director. The holder of this license may also hold an unlimited number of events on the licensed premises, which shall be scheduled in advance and may be limited by invitation or open to the general public. Subject to the consent of the holder of this license, a host of a private event held on the licensed premises, except when the host is the holder of this license, may bring the host's own wine and malt or malt substitute alcoholic beverages not produced on the licensed premises to the event. A social affair permit holder or host of a private party, held on or off the licensed premises, may hire an employee of the holder of this license to pour any distilled alcoholic beverage that is produced on the licensed premises and to provide educational commentary about the distilled alcoholic beverage that is produced on the licensed premises. The holder of this license may offer for sale suitable gift items and novelty wearing apparel identified with the name of the holder of this license. A holder of this license who certifies that not less than 51 percent of the raw materials used in the production of distilled alcoholic beverages under this section are grown in this State or purchased from providers located in this State may, consistent with all applicable federal laws and regulations, label these distilled alcoholic beverages as "New Jersey Distilled." The fee for this license shall be [$938] set by the director through rules and regulations.

Rectifier and blender license. 4. The holder of this license shall be entitled, subject to rules and regulations, to rectify, blend, treat and mix distilled alcoholic beverages, and to fortify, blend, and treat fermented alcoholic beverages, and prepare mixtures of alcoholic beverages, and to sell and distribute his products to wholesalers and retailers licensed in accordance with this chapter, and to sell and distribute without this State to any persons pursuant to the laws of the places of such sale and distribution, and to maintain a warehouse. The fee for this license shall be $7,500.

Bonded warehouse bottling license. 5. The holder of this license shall be entitled, subject to rules and regulations, to bottle alcoholic beverages in bond on behalf of all persons authorized by federal and State law and regulations to withdraw alcoholic beverages from bond. The fee for this license shall be $625. This license shall be issued only to persons holding permits to operate Internal Revenue bonded warehouses pursuant to the laws of the United States.

The provisions of section 21 of P.L.2003, c.117 amendatory of this section shall apply to licenses issued or transferred on or after July 1, 2003, and to license renewals commencing on or after July 1, 2003.

(cf: P.L.2021, c.407, s.1)

2. R.S.33:1-12 is amended to read as follows:

33:1-12. Class C licenses shall be subdivided and classified as follows:

Plenary retail consumption license. 1. The holder of this license shall be entitled, subject to rules and regulations, to sell any alcoholic beverages for consumption on the licensed premises by the glass or other open receptacle, and also to sell any alcoholic beverages in original containers for consumption off the licensed premises; but this license shall not be issued to permit the sale of alcoholic beverages in or upon any premises in which a grocery, delicatessen, drug store or other mercantile business is carried on, except as hereinafter provided. The holder of this license shall be permitted to conduct consumer wine, beer and spirits tasting events and samplings for a fee or on a complimentary basis pursuant to conditions established by rules and regulations of the Division of Alcoholic Beverage Control, provided however, that the holder of this license complies with the terms and conditions set forth in section 3 of P.L.2009, c.216 (C.33:1-12d). Subject to such rules and regulations established from time to time by the director, the holder of this license shall be permitted to sell alcoholic beverages in or upon the premises in which any of the following is carried on: the keeping of a hotel or restaurant including the sale of mercantile items incidental thereto as an accommodation to patrons; the sale, at an entertainment facility as defined in R.S.33:1-1, having a seating capacity for no less than 4,000 patrons, of mercantile items traditionally associated with the type of event or program held at the site; the sale of distillers', brewers' and vintners' packaged merchandise prepacked as a unit with other suitable objects as gift items to be sold only as a unit; the sale of novelty wearing apparel identified with the name of the establishment licensed under the provisions of this section; the sale of cigars, cigarettes, packaged crackers, chips, nuts and similar snacks and ice at retail as an accommodation to patrons, or the retail sale of nonalcoholic beverages as accessory beverages to alcoholic beverages; or, in commercial bowling establishments, the retail sale or rental of bowling accessories and the retail sale from vending machines of candy, ice cream and nonalcoholic beverages.

[The] Beginning January 1, 2024 and thereafter, an initial State fee for this license shall be fixed by the [governing board or body of the municipality in which the licensed premises are situated, by ordinance, at not less than $250 and not more than $2,500. No ordinance shall be enacted which shall raise or lower the fee to be charged for this license by more than 20% from that charged in the preceding license year or $500.00, whichever is the lesser] director pursuant to regulation. A holder of this license on the effective date of P.L. , c. (pending before the Legislature as this bill) shall be subject to an annual State renewal fee of $200 and to a separate municipal renewal fee set by the governing board or body of the municipality in which the licensed premises are situated, which shall not exceed an amount set by the director by rules and regulations. A person who initially acquires this license on and after January 1, 2024 shall be subject to the initial State fee fixed by the director. The State fee for this license shall be paid to the director, who shall review and update the fee on an annual basis. The State fee for this license shall be graduated, as determined from time to time by the director through rules and regulations, based on the number of persons employed by the licensee, but shall initially be as follows: a fee set by the director for microbusinesses, having fewer than 10 employees and annual gross revenue of less than $1,500,000; a fee set by the director for small businesses, having fewer than 20 employees; and a fee set by the director for all other businesses.

The governing board or body of each municipality may, by ordinance, regulate the number and types of licenses to be issued or enact that no plenary retail consumption license shall be granted within its respective municipality. The governing board or body of each municipality may, by ordinance, establish a separate, municipal initial fee and an annual renewal fee not to exceed amounts set by the director through rules and regulations.

The holder of this license shall be permitted to obtain a restricted brewery license issued pursuant to subsection 1c. of R.S.33:1-10 and to operate a restricted brewery immediately adjoining the licensed premises in accordance with the restrictions set forth in that subsection. All fees related to the issuance of both licenses shall be paid in accordance with statutory law.

Beginning January 1, 2029, the holder of this license, acquired on or after the date of enactment of P.L. , c. (pending before the Legislature as this bill), shall not sell or transfer the license for consideration.

Seasonal retail consumption license. 2. (1) The holder of this license shall be entitled, subject to rules and regulations, to sell any alcoholic beverages for consumption on the licensed premises by the glass or other open receptacle, and also to sell any alcoholic beverages in original containers for consumption off the licensed premises, during the summer season from May 1 until November 14, inclusive, or during the winter season from November 15 until April 30, inclusive.

(2) In addition, the director shall issue to the holder of this license, upon request by the licensee, one-day permits that shall entitle the license holder to sell alcoholic beverages for consumption on the licensed premises during the season when the license holder is not authorized to sell alcoholic beverages pursuant to subparagraph (1) of this subsection. The number of one-day permits issued to a licensee pursuant to this subsection shall not exceed an aggregate of 14 permits in one calendar year. A one-day permit issued pursuant to this subsection shall be valid for 24 consecutive hours. The fee for each one-day permit shall be $500.

The governing body of the municipality in which the licensed premises is situated may place reasonable conditions upon a one-day permit for the purpose of maintaining public safety on the licensed premises and immediately surrounding area. The costs associated with the reasonable conditions placed on the one-day permit shall be assumed by the holder of this license.

(3) This license shall not be issued to permit the sale of alcoholic beverages in or upon any premises in which a grocery, delicatessen, drug store or other mercantile business is carried on, except as hereinafter provided. Subject to such rules and regulations established from time to time by the director, the holder of this license shall be permitted to sell alcoholic beverages in or upon the premises in which any of the following is carried on: the keeping of a hotel or restaurant including the sale of mercantile items incidental thereto as an accommodation to patrons; the sale of distillers', brewers' and vintners' packaged merchandise prepacked as a unit with other suitable objects as gift items to be sold only as a unit; the sale of novelty wearing apparel identified with the name of the establishment licensed under the provisions of this section; the sale of cigars, cigarettes, packaged crackers, chips, nuts and similar snacks and ice at retail as an accommodation to patrons; or the retail sale of nonalcoholic beverages as accessory beverages to alcoholic beverages. [The] Beginning January 1, 2024 and thereafter, a State fee for this license shall be fixed by the [governing board or body of the municipality in which the licensed premises are situated, by ordinance,] director at [75%] 75 percent of the fee fixed by [said board or body] the director for plenary retail consumption licenses. The governing board or body of each municipality may, by ordinance, establish a separate, municipal initial fee and an annual renewal fee not to exceed at 75 percent of the fee fixed by the board or body for a plenary retail consumption license. The governing board or body of each municipality may, by ordinance, enact that no seasonal retail consumption license shall be granted within its respective municipality.

Plenary retail distribution license. 3. a. The holder of this license shall be entitled, subject to rules and regulations, to sell any alcoholic beverages for consumption off the licensed premises, but only in original containers; except that licensees shall be permitted to conduct consumer wine, beer, and spirits tasting events and samplings on a complimentary basis pursuant to conditions established by rules and regulations of the Division of Alcoholic Beverage Control, provided however, that the holder of this license complies with the terms and conditions set forth in section 3 of P.L.2009, c.216 (C.33:1-12d).

The governing board or body of each municipality may, by ordinance, enact that this license shall not be issued to permit the sale of alcoholic beverages in or upon any premises in which any other mercantile business is carried on, except that any such ordinance, heretofore or hereafter adopted, shall not prohibit the retail sale of distillers', brewers' and vintners' packaged merchandise prepacked as a unit with other suitable objects as gift items to be sold only as a unit; the sale of novelty wearing apparel identified with the name of the establishment licensed under the provisions of this act; cigars, cigarettes, packaged crackers, chips, nuts and similar snacks, ice, and nonalcoholic beverages as accessory beverages to alcoholic beverages. The fee for this license shall be fixed by the governing board or body of the municipality in which the licensed premises are situated, by ordinance, at not less than $125 and not more than $2,500. No ordinance shall be enacted which shall raise or lower the fee to be charged for this license by more than [20%] 20 percent from that charged in the preceding license year or $500.00, whichever is the lesser. The governing board or body of each municipality may, by ordinance, enact that no plenary retail distribution license shall be granted within its respective municipality.

Limited retail distribution license. 3. b. The holder of this license shall be entitled, subject to rules and regulations, to sell any unchilled, brewed, malt or malt substitute alcoholic beverages in quantities of not less than 72 fluid ounces for consumption off the licensed premises, but only in original containers; provided, however, that this license shall be issued only for premises operated and conducted by the licensee as a bona fide grocery store, meat market, meat and grocery store, delicatessen, or other type of bona fide food store at which groceries or other foodstuffs are sold at retail; and provided further that this license shall not be issued except for premises at which the sale of groceries or other foodstuffs is the primary and principal business and at which the sale of alcoholic beverages is merely incidental and subordinate thereto. The fee for this license shall be fixed by the governing body or board of the municipality in which the licensed premises are situated, by ordinance, at not less than $31 and not more than $63. The governing board or body of each municipality may, by ordinance, enact that no limited retail distribution license shall be granted within its respective municipality.

Plenary retail transit license. 4. The holder of this license shall be entitled, subject to rules and regulations, to sell any alcoholic beverages, for consumption only, on railroad trains, airplanes, limousines and boats, while in transit. The fee for this license for use by a railroad or air transport company shall be $375, for use by the owners of limousines shall be $31 per vehicle, and for use on a boat shall be $63 on a boat 65 feet or less in length, $125 on a boat more than 65 feet in length but not more than 110 feet in length, and $375 on a boat more than 110 feet in length; such boat lengths shall be determined in the manner prescribed by the Bureau of Customs of the United States Government or any federal agency successor thereto for boat measurement in connection with issuance of marine documents. A license issued under this provision to a railroad or air transport company shall cover all railroad cars and planes operated by any such company within the State of New Jersey. A license for a boat or limousine issued under this provision shall apply only to the particular boat or limousine for which issued, and shall permit the purchase of alcoholic beverages for sale or service in a boat or limousine to be made from any Class A and B licensee or from any Class C licensee whose license privilege permits the sale of alcoholic beverages in original containers for off-premises consumption. An interest in a plenary retail transit license issued in accordance with this section shall be excluded in determining the maximum number of retail licenses permitted under P.L.1962, c.152 (C.33:1-12.31 et seq.).

Club license. 5. The holder of this license shall be entitled, subject to rules and regulations, to sell any alcoholic beverages but only for immediate consumption on the licensed premises and only to bona fide club members and their guests. The fee for this license shall be fixed by the governing board or body of the municipality in which the licensed premises are situated, by ordinance, at not less than $63 and not more than $188. The governing board or body of each municipality may, by ordinance, enact that no club licenses shall be granted within its respective municipality. Club licenses may be issued only to such corporations, associations and organizations as are operated for benevolent, charitable, fraternal, social, religious, recreational, athletic, or similar purposes, and not for private gain, and which comply with all conditions which may be imposed by the Director of the Division of Alcoholic Beverage Control by rules and regulations.

The provisions of section 23 of P.L.2003, c.117 amendatory of this section shall apply to licenses issued or transferred on or after July 1, 2003, and to license renewals commencing on or after July 1, 2003.

Sporting facility license. 6. The holder of this license shall be entitled, subject to rules and regulations, to sell at retail or to serve any alcoholic beverages as the owner, operator, lessee, or concessionaire of a sporting facility by the glass or other receptacle or in original containers only on the premises of the sporting facility.

Notwithstanding any other provision of Title 33 of the Revised Statutes and subject to conditions established by the director, the holder of this license may share direction and control of the premises to be licensed and share proceeds and profits from the sale of alcoholic beverages with the owner, operator, concessionaire, or lessee of the facility. The holder of this license shall be permitted to conduct consumer wine, beer, and spirits tasting events and samplings for a fee or on a complimentary basis provided, however, the license holder complies with the provisions of section 3 of P.L.2009, c.216 (C.33:1-12d) and rules and regulations promulgated thereto. Notwithstanding any law, rule or regulation to the contrary, the holder of this license shall be entitled to establish an all-inclusive area within the licensed sporting facility, provided the all-inclusive area is limited to one area within the sporting facility for each game or event and the capacity of the all-inclusive area does not exceed 500 persons.

The fee for this license shall be $2,500 for venues with a capacity of less than 7,500 persons; $5,000 for venues with a capacity of not less than 7,500 persons but not more than 14,999 persons; $7,500 for venues with a capacity of not less than 15,000 persons but not more than 22,499 persons; and $10,000 for venues with a capacity of 22,500 persons or more.

For the purposes of this subsection:

"Sporting facility" means a stadium, arena, team training facility, or similar venue located on public property where alcoholic beverages are served or sold at retail for consumption on the premises by the glass or other open receptacle or in original containers.

"Team training facility" shall include team offices and team headquarters.

(cf: P.L.2018, c.147, s.1)

3. Section 2 of P.L.1947, c.94 (C.33:1-12.14) is amended to read as follows:

2. a. Except as otherwise provided in this act, no new plenary retail consumption or seasonal retail consumption license shall be issued in a municipality unless and until:

Prior to January 1, 2024, the combined total number of such licenses existing in the municipality is fewer than one for each 3,000 of its population;

On and after January 1, 2024 but prior to January 1, 2025, the combined total number of such licenses existing in the municipality is 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 such licenses existing in the municipality is 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 such licenses existing in the municipality is 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 such licenses existing in the municipality is 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 such licenses existing in the municipality is fewer than one for each 1,771 of its population; and

On and after January 1, 2029, there shall be no limitation on the combined total number of plenary retail consumption or seasonal retail consumption licenses existing in a municipality.

A municipality's population shall be determined according to the most recent estimates issued by the U.S. Bureau of the Census; provided, however, in the year that the official federal decennial counts are received by the Governor, those federal decennial counts shall be used.

b. No new plenary retail distribution license shall be issued in a municipality unless and until the number of such licenses existing in the municipality is fewer than one for each 7,500 of its population according to the most recent estimates issued by the U.S. Bureau of the Census; provided, however, in the year that the official federal decennial counts are received by the Governor, those federal decennial counts shall be used.

(cf: P.L.1999, c.189, s.1)

4. Section 1 of P.L.1975, c.275 (C.33:1-19.1) is amended to read as follows:

1. Whenever a municipality is authorized to issue one or more new or additional [plenary retail consumption, seasonal retail consumption or] plenary retail distribution licenses [or a plenary retail consumption license acquired pursuant to section 3 of P.L.2007, c.351 (C.33:1-24.3)] and the governing body by resolution determines to permit the issuance thereof, the governing body shall cause to be published a notice of the proposed issuance of said license or licenses and that applications therefor will be accepted by the governing body or in municipalities having a municipal board of alcoholic beverage control or municipal excise commission, by the board or commission, as the case may be. The notice shall specify a time and date after which no further applications will be accepted. The notice shall be published in a newspaper circulating generally in the municipality by not less than two insertions, 1 week apart, the second of which shall be made not less than 30 days prior to the time and date specified in the notice as the time and date after which no further applications will be accepted.

(cf: P.L.2007, c.351, s.4)

5. Section 1 of P.L.1981, c.416 (C.33:1-19.3) is amended to read as follows:

1. Whenever a municipality is authorized to issue one or more [plenary retail consumption, seasonal retail consumption or] plenary retail distribution licenses and the governing body determines to permit the issuance thereof, the governing body by resolution may authorize that such license or licenses be issued to the highest qualified bidder therefor and shall conduct a public sale for such purpose or direct that such a sale be conducted by the municipal board of alcoholic beverage control or municipal excise commission in a municipality where such board or commission exists. The governing body by resolution may also prescribe qualifications for prospective bidders [including the requirement that a licensee, as a condition of the award of the license, shall operate a restaurant, public accommodation or other facility]; provided, however, that no municipal license requirement is contrary or inconsistent with law, rule or regulation. The governing body may, by resolution, fix a minimum bid and conditions of sale with the reservation of the right to reject all bids where the highest bid is not accepted.

(cf: P.L.1981, c.416, s.1)

6. (New section) a. Whenever a municipality determines to issue one or more plenary retail consumption or seasonal retail consumption licenses, the governing body shall cause to be published a notice of the proposed issuance of the license or licenses and that applications therefor will be accepted by the governing body or in municipalities having a municipal board of alcoholic beverage control or municipal excise commission, by the board or commission, as the case may be. The notice shall specify a time and date after which no further applications will be accepted.

b. If the number of prospective licensees exceeds the number of licenses a municipality determines to issue, then the governing body by resolution may authorize that the license or licenses be issued to the highest qualified bidder therefor, subject to restrictions that may be imposed by the director through rules and regulations, and shall conduct a public sale for that purpose or direct that the sale be conducted by the municipal board of alcoholic beverage control or municipal excise commission in a municipality where a board or commission exists. The governing body by resolution may also prescribe qualifications for prospective bidders, including the requirement that a licensee, as a condition of the award of the license, shall operate a restaurant, public accommodation, or other facility; provided, however, that no municipal license requirement is contrary or inconsistent with law, rule, or regulation. The governing body may, by resolution, fix a minimum bid and conditions of sale with the reservation of the right to reject all bids where the highest bid is not accepted. The sale shall be conducted in accordance with the provisions of sections 2 through 4 of P.L.1981, c.416 (C.33:1-19.4 through C.33:1-19.6). The amounts paid pursuant to this subsection shall be in addition to any State or municipal license fee required to be paid by the licensee.

7. R.S.33:1-43 is amended to read as follows:

33:1-43. a. It shall be unlawful for any owner, part owner, stockholder or officer or director of any corporation, or any other person whatsoever interested in any way whatsoever in any brewery, winery, distillery or rectifying and blending plant, or any wholesaler of alcoholic beverages, to conduct, own either in whole or in part, or be directly or indirectly interested in the retailing of any alcoholic beverages in New Jersey except as provided in this chapter, and such interest shall include any payments or delivery of money or property by way of loan or otherwise accompanied by an agreement to sell the product of said brewery, winery, distillery, rectifying and blending plant or wholesaler.

b. It shall be unlawful for any owner, part owner, stockholder or officer or director of any corporation, or any other person whatsoever, interested in any way whatsoever in the retailing of alcoholic beverages to conduct, own either whole or in part, or to be a shareholder, officer or director of a corporation or association, directly or indirectly, interested in any brewery, winery, distillery, rectifying and blending plant, or wholesaling or importing interest of any kind whatsoever.

No interest in the retailing of alcoholic beverages shall be deemed to exist by reason of the ownership, delivery or loan of interior signs designed for and exclusively used for advertising the product of or product offered for sale by such brewery, winery, distillery or rectifying and blending plant or wholesaler.

c. Nothing in this section shall prohibit:

(1) The exercise of limited retail privileges by Class A or Class B licensees conferred pursuant to R.S.33:1-10, R.S.33:1-11, by rule or regulation or by special permit issued by the director;

(2) Any owner, part owner, stockholder, officer or director of any corporation, or any other person whatsoever interested in any way whatsoever in any brewery, winery, distillery, rectifying and blending plant or any wholesaler of alcoholic beverages, from conducting, owning, either in whole or in part, or being directly or indirectly interested in the retailing of any alcoholic beverages, under any retail consumption license or State issued permit, in conjunction with and as a part of the operations of a hotel or motel;

(3) Any owner, part owner, stockholder or officer or director of any corporation, or any other person or corporation interested in any way whatsoever in the retailing of alcoholic beverages, under a retail consumption license or State issued permit, in conjunction with and as a part of the operations of a hotel or motel from conducting, owning, either in whole or in part, or being a shareholder, officer or director of a corporation or association, directly or indirectly interested in any brewery, winery, distillery, rectifying and blending plant, or wholesaling or importing interest of any kind whatsoever; [or]

(4) The exercise of a restricted brewery license privilege by an immediately adjoining restaurant having a plenary retail consumption license issued under R.S.33:1-12; or

(5) The exercise of retail consumption privileges afforded to the holder of a limited brewery license, plenary winery license, farm winery license, craft distillery license, or cidery and meadery license pursuant to R.S.33:1-10.

No more than [20%] 20 percent of the total gross annual revenues of a hotel or motel described in paragraphs (2) and (3) shall be derived from the sale of alcoholic beverages by the hotel or motel. A retail licensee described in paragraphs (2) and (3) shall not purchase or sell any alcoholic beverage product produced or sold by the brewery, winery, distillery, rectifying and blending plant, wholesaler or importer that has any interest in the retail license of the hotel or motel, unless the total of all such products is [5%] five percent or less of the total volume of alcoholic beverage products purchased and sold annually by the hotel or motel holding the retail license. The retail licensee shall, within 30 days following the effective date of this act, file with the Division of Alcoholic Beverage Control a list of all alcoholic beverage products which shall not be purchased or sold by the hotel or motel except to the extent permitted herein. Thereafter, the retail licensee shall file a new or amended list with the division within 30 days of any changed circumstances which affect the information on the list. This list shall be made available to the public upon request.

For purposes of this subsection "hotel" or "motel" means an establishment containing at least 100 guest room accommodations where the relationship between the occupants thereof and the owner or operator of the establishment is that of innkeeper and guest.

(cf: P.L.1993, c.216, s.3)

8. Section 6 of P.L.1947, c.94 (C.33:1-12.18) is amended to read as follows:

6. a. [Except as provided in subsection d. of this section, in] In any case in which a timely renewal was not filed, nothing in this act shall be deemed to prevent the issuance of a new license to a person who files an application therefor within one year following the expiration of the license renewal period, but who pays the municipal and State renewal fees for the year for which a timely renewal application was not filed, if the director shall determine in writing that the applicant's failure to apply for a renewal of his license was due to circumstances beyond his control or other extraordinary circumstances.

b. Any request for relief under this section shall be filed not later than one year following the expiration of the license renewal period for the license which was not renewed in a timely manner and shall be accompanied by a nonreturnable filing fee of $100 payable to the director for each license term.

c. A new license issued pursuant to this section shall be assigned the same license number as the license which was not renewed in a timely manner.

d. [Notwithstanding subsection a. of this section, a person with an] An expired Class C license, as to which [was] a timely renewal was not filed and as to which relief pursuant to subsection a. of this section was either not timely requested or was denied, shall not [renewed within the five years immediately preceding the enactment of P.L.2010, c.14, but who pays the municipal and State renewal fees for each year for which a timely renewal application was not filed, may file for issuance of a new license in accordance with subsection a. of this section within six months of the effective date of P.L.2010, c.14] be subject to renewal once the time period set forth in subsections a. and b. of this section has elapsed and the time for appeal from the director's determination has expired or, if an appeal from the director's determination has been taken, such relief has been denied.

e. At any time prior to January 1, 2029, a Class C license that has not been renewed pursuant to this section within five years immediately preceding the enactment of P.L. , c. (C. )(pending before the Legislature as this bill) may be reissued in a manner consistent with the provisions of P.L.1975, c.275 (C.33:1-19.1 et seq.) for use at a licensed premises located within the municipality.

f. Any Class C license reissued pursuant to subsection e. of this section shall be of the same license type as the expired license and shall be used in a manner consistent with the provisions of Title 33 of the Revised Statutes and any regulations promulgated by the director.

(cf: P.L. 2010, c.14, s.1)

9. Section 1 of P.L.1977, c.246 (C.33:1-12.39) is amended to read as follows:

1. [No] a. The governing board or body of a municipality may renew a Class C license [,] as [the same is] defined in R.S.33:1-12, [shall be renewed if the same] regardless of whether the license has been actively used in connection with the operation of a licensed premises.

b. The governing board or body of a municipality may deny the renewal of a Class C license that has not been actively used in connection with the operation of a licensed premises within a period of two years prior to the commencement date of the license period for which the renewal application is filed [unless the director, for good cause and] if, after a hearing, [authorizes a further application for one or more renewals within a stated period of years ; provided, however that,] it finds that the holder of the license has not made a good faith effort to resume active use of the license.

c. The governing board or body of a municipality shall not deny the renewal of an inactive Class C license pursuant to subsection b. of this section if the licensee establishes by affidavit filed with and approved by the governing board or body that the licensee has been deprived of the use of the licensed premises as a result of eminent domain [,] or fire or other casualty [, and establishes by affidavit filed with the that is making a good faith effort to resume active use of the license in connection with the operation of a licensed premise then the period of two years provided for in this section shall be automatically extended for an additional period of]. A governing board or body that approves an affidavit for relief filed pursuant to this subsection shall extend the renewal period of the license for an additional two years.

[Any request for relief under this section shall be accompanied by a nonreturnable filing fee of $100.00 payable to the director.]

d. At any time prior to January 1, 2029, an inactive Class C license that has been denied renewal pursuant to subsection b. of this section may be reissued in a manner consistent with the provisions of P.L.1975, c.275 (C.33:1-19.1 et seq.) as amended by P.L. , c. (pending before the Legislature as this bill), for use at a licensed premises located within the municipality. The use of a plenary retail consumption license issued pursuant to this subsection shall be in a manner consistent with the provisions of Title 33 of the Revised Statutes and any regulations promulgated by the director.

e. Nothing in this section shall be construed to restrict the authority of a governing board or body of a municipality or the director to issue, renew, or deny a renewal of a license, including but not limited to an inactive Class C license, on any other grounds.

(cf: P.L.1996, c.127, s.1)

10. (New section) a. For the privilege period beginning on or after January 1 next following the effective date of this act, a taxpayer, who holds a plenary retail consumption license on the effective date of this act, shall be allowed a credit against the tax imposed pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5) in the following amounts:

(1) the holder of a plenary retail consumption license on the effective date of this act with taxable sales at the licensed premises, which did not exceed $1,500,000 in any one of the three calendar years preceding the effective date of this act, shall be allowed a credit in the amount of $50,000;

(2) the holder of a plenary retail consumption license on the effective date of this act with taxable sales at the licensed premises of more than $1,500,000 in any one of the three calendar years preceding the effective date of this act but did not exceed $2,900,000 in any one of the three calendar years preceding the effective date of this act, shall be allowed a credit in the amount of $40,000; and

(3) the holder of a plenary retail consumption license on the effective date of this act with taxable sales at the licensed premises, which in any one of the three calendar years preceding the effective date of this act exceeded $2,900,000, shall be allowed a credit in the amount of $30,000.

b. The order of priority of the application of the tax credit allowed pursuant to this section, and any other credits allowed against the tax imposed pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5) for a privilege period, shall be as prescribed by the director. Notwithstanding the minimum tax schedule imposed pursuant to subsection (e) of section 5 of P.L.1945, c.162 (C.54:10A-5), if the amount of the tax credit allowed exceeds the amount of corporation business tax otherwise due pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5), the amount of excess shall be treated as a refundable overpayment except that interest shall not be paid pursuant to section 7 of P.L.1992, c.175 (C.54:49-15.1) on the amount of overpayment attributable to the tax credit allowed pursuant to this section.

c. The Director may request such information from a taxpayer and from the Division of Alcohol and Beverage Control as necessary to determine the taxpayer's eligibility for a tax credit.

d. A taxpayer shall be ineligible for a credit under this section if the taxpayer holds a plenary retail consumption license on the effective date of this act but did not have taxable sales at the licensed premises in each of the last three calendar years preceding the effective date of this act.

e. A taxpayer shall not be allowed a credit under this section for the same plenary retail consumption license for which a tax credit was allowed under section 11 of P.L. , c. (C. ) (pending before the Legislature as this bill).

f. As used in this section, "taxable sales" means the total amount of the receipts from all sales taxable under the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-1 et seq.), excluding amounts subject to the hotel and motel occupancy fee imposed pursuant to section 1 of P.L.2003, c.114 (C.54:32D-1).

11. (New section) a. For the taxable year beginning January 1 next following the effective date of this act, a taxpayer, who holds a plenary retail consumption license on the effective date of this act, shall be allowed a credit against the tax otherwise due for the taxable year under the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq., in the following amounts:

b. The order of priority of the application of the credit allowed pursuant to this section, and any other credits allowed against the tax imposed pursuant to N.J.S.54A:1-1 et seq. for a taxable year, shall be as prescribed by the director. If the amount of the credit allowed exceeds the amount of gross income tax otherwise due pursuant to the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq. the amount of excess shall be treated as a refund of an overpayment of tax in accordance with N.J.S.54A:9-7; provided, however, that subsection (f) of that section, concerning the allowance of interest, shall not apply.

c. (1) A taxpayer that is classified as a partnership for federal income tax purposes shall not be allowed a credit under this section directly, but the amount of credit of a taxpayer in respect of a distributive share of partnership income under the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq., shall be determined by allocating to the taxpayer that proportion of the credit acquired by the partnership that is equal to the taxpayer's share, whether or not distributed, of the total distributive income or gain of the partnership for its taxable year ending within or with the taxpayer's taxable year.

(2) A New Jersey S Corporation shall not be allowed a credit under this section directly, but the amount of the tax credit of a taxpayer in respect of a pro rata share of S Corporation income, shall be determined by allocating to the taxpayer that proportion of the tax credit acquired by the New Jersey S Corporation that is equal to the taxpayer's share, whether or not distributed, of the total pro rata share of S Corporation income of the New Jersey S Corporation for its privilege period ending within or with the taxpayer's taxable year.

d. The Director may request such information from a taxpayer and from the Division of Alcohol and Beverage Control as necessary to determine a taxpayer's eligibility for a tax credit.

e. A taxpayer shall be ineligible for a credit under this section if the taxpayer holds a plenary retail consumption license on the effective date of this act but did not have taxable sales at the licensed premises in each of the last three calendar years preceding the effective date of this act.

f. A taxpayer shall not be allowed a credit under this section for the same plenary retail consumption license for which a tax credit was allowed under section 10 of P.L. , c. (C. ) (pending before the Legislature as this bill).

g. As used in this section, "taxable sales" means the total amount of the receipts from all sales taxable under the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-1 et seq.), excluding amounts subject to the hotel and motel occupancy fee imposed pursuant to section 1 of P.L.2003, c.114 (C.54:32D-1).

12. (New section) Notwithstanding the provisions of the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), to the contrary, the director shall adopt, immediately upon filing with the Office of Administrative Law, rules and regulations that the director deems necessary to implement the provisions of [this act] P.L. , c. (C. ) (pending before the Legislature as this bill), which rules and regulations shall be effective for a period not to exceed 365 days from the date of the filing. The director shall thereafter amend, adopt, or readopt the rules and regulations in accordance with the requirements of P.L.1968, c.410 (C.52:14B-1 et seq.).

13. Sections 1 through 3 and sections 7 through 12 of this act shall take effect immediately, but section 1 shall remain inoperative until the effective date of rules and regulations adopted pursuant to section 12 of this act, and sections 10 and 11 shall apply to the privilege period and taxable year beginning on or after January 1 next following the date of enactment. Sections 4 through 6 of this act shall take effect on January 1, 2029.

STATEMENT

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.

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Bill Text: NJ A1425 | 2024-2025 | Regular Session | Introduced

New Jersey Assembly Bill 1425

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