S2160 has been favorably reported out of both the Senate Law and Public Safety Committee and the Senate Budget and Appropriations Committee. The bill concerns alcoholic beverage licenses and amends R.S. 33:1-2. Specifically, the bill allows a person who held a seasonal retail consumption license prior to the bill’s effective date to surrender the license to the issuing authority, which then may exchange the license for a plenary retail consumption license. The seasonal license permits licensees to provide on-site consumption from either May 1 through November 14 or November 15 to April 30. The converted plenary retail consumption license will permit the licensee to sell alcoholic beverages for consumption on the licensed premises during the entire year.
The bill also proposes changes that will entitle a person seeking to exchange a seasonal retail consumption license to the same privileges and ability to sell alcoholic beverages during the same times and days as other plenary retail consumption license holders in the same municipality. This entitlement may not be prohibited or limited by a municipality.
Under S-2160, the fee to convert a seasonal license is based upon the average sales price of plenary retail consumption licenses in the municipality in which the licensed premises is located during the two years immediately preceding the bill’s effective date, or the last three years preceding the bill’s effective date if a plenary retail consumption license has not been sold in the preceding 2 years. Also, if the licensed premises are located within the boundaries of two or more municipalities, the highest average sales price of the two municipalities would be used to calculate the fee, not to exceed $250,000. A person who exchanges a license would also be required to pay the same annual fee as a plenary retail consumption license holder.
The bill does not allow for the issuance of new licenses but rather allows the seasonal licensees to sell alcoholic beverages throughout the entire year. If this bill is passed, it will take effect on the first day of the fourth month following the date of its enactment.
While the League supports this legislation, broader reform is still needed to address the limitations of New Jersey’s liquor license laws in Title 33. Under current law, municipalities may issue one license per 3,000 residents, according to the most recent data from the United States Bureau of the Census. As a result of this restriction, there is an insufficient number or complete lack of available plenary and distribution licenses in many municipalities. The League supports comprehensive reform that would help expand economic opportunities for New Jersey’s municipalities and businesses by providing a mechanism to offer additional liquor licenses.
Contact: Sadayah Q. DuRant-Brown, Legislative Counsel, sdurantbrown@njlm.org, 609-695-3481, x137.