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New Jersey Legislature· S4404Approved by the Governor; P.L.2026, c.46

Makes various revisions to the laws governing alcoholic beverage licensing, the official text

Shown verbatim: the complete text as captured from the official page posted by the New Jersey Legislature, fetched 2026-08-28. Where this bill amends existing law, language marked for deletion in the official page appears here in brackets. This is the first reprint. The official bill page.
[First Reprint]

SENATE, No. 4404

STATE OF NEW JERSEY

222nd LEGISLATURE

INTRODUCED JUNE 4, 2026

Sponsored by:

Senator  VIN GOPAL

District 11 (Monmouth)

Assemblywoman  LUANNE M. PETERPAUL

District 11 (Monmouth)

Co-Sponsored by:

Assemblywoman Drulis

SYNOPSIS

Makes various revisions to the laws governing
alcoholic beverage licensing.

CURRENT VERSION OF TEXT

As reported by the Senate Budget and Appropriations
Committee on June 28, 2026, with amendments.

An Act concerning alcoholic beverage licensing,
supplementing Title 33 of the Revised Statutes, and amending various parts of
the statutory law.

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

1.  Section 1 of P.L.2023,
c.290 (C.33:1-10b) is amended to read as follows:

1. a. As used in this section:

“Coordinate with food vendors” means a licensee, or
anyone on the licensee’s behalf,
directly or indirectly arranging with a
food truck, vendor, or restaurant to
be present on
or off the licensed premises of a 1[limited brewery licensee]
craft manufacturer’s licensee1, provided that the holder of
a 1[limited
brewery license] craft manufacturer’s license1 shall not own or operate the food truck, vendor, or restaurant and shall not share in the proceeds or profits from
the sale of food.

"Craft manufacturer's
license" means a limited brewery license, cidery and meadery license, and
craft distillery license issued pursuant to R.S.33:1-10.

"Off-premises special
events" means special events that take place at a location other than on
the licensed premises or the 1licensed1
sidewalk, parking lot, or other area owned by the licensee that is adjacent to
or adjoining the licensed premises and shall include, but not be limited to:
beer, music, and arts festivals; civic events; foot races, bike races, and
other athletic events; craft manufacturers' anniversary celebrations; and
holiday celebrations.

"On-premises special
event" means an event that is open to the public and held on the licensed
premises or the licensed
sidewalk, parking lot, or other area owned by the licensee that is adjacent to
or adjoining the licensed premises.  An on-premises special event shall
include, but not be limited to: trivia and quiz games; paint and sip;
craftmaking; pop up shops; DJs, live music, amplified music, and open mic;
televised or streamed sporting events; educational events and seminars; movies
and theatrical events; animal adoption, to the extent permitted by local
ordinance; yoga and exercise classes; and games of skill.

"Private party"
means an event that is held on the licensed premises and closed to the general
public, either by the establishment of a special area of the licensed premises
that may be reserved to be occupied only by the hosts or guests of the private
party, or by closure of the licensed premises to the public for the duration of
the private party.

b.    The holder of a craft
manufacturer's license shall be entitled to sell and serve customers tableside
utilizing servers or wait staff employed by the license holder. The license
holder shall be entitled to serve the licensee's products for on-premises consumption
in outdoor spaces approved by the municipality, provided the license holder applies for and receives an appropriate
permit or license from the director.  A craft manufacturer that serves
alcoholic beverages in outdoor spaces may utilize a permanent or portable tap
system located in the approved outdoor space.  Pourers and servers employed by
a craft manufacturer's license holder shall be certified by an
industry-recognized server training program.

c.    The holder of a craft
manufacturer's license shall be permitted to offer for sale or make the
gratuitous offering of de minimis food items including, but not limited to,
packaged crackers, chips, nuts, and similar snacks to customers for
consumption both on and off the licensed premises.  The license
holder may sell non-alcoholic beverages, whether or not manufactured by the
license holder for consumption both on and off the licensed premises.
The license holder also may coordinate with a food vendor for the provision of
food on the licensed premises and provide menus to customers for the sale of
food.

The holder of a craft
manufacturer's license may offer for sale suitable gift items and novelty
wearing apparel identified with the name of the craft manufacturer, or to
promote the craft beverage industry.

d.    The holder of a craft
manufacturer's license shall be entitled to hold an unlimited number of
on-premises special events, for which the license holder may sell tickets or
charge a cover fee for attendance.  The license holder shall not be required to
obtain a permit or provide electronic notification to the division of
on-premises special events.

e.    The holder of a craft
manufacturer's license shall be entitled to annually hold not more than 25
off-premises special events authorized by a permit issued by the director for
each off-premises special event.  An off-premises special event permit may be issued
for an event that is held for a maximum of three consecutive days. The license
holder shall be entitled to coordinate with food vendors for the provision of
food at off-premises events , sell its product by the glass or open container for immediate
consumption, sell or gratuitously provide samples for immediate consumption, and sell 1chilled
and1 unchilled packaged goods or growlers and crowlers for off-premises consumption. If an off-premises
special event is to be held on a publicly owned or controlled property, the
license holder shall be required to obtain the consent of the political
subdivision that owns or controls the property [or] and the chief law
enforcement officer of the law enforcement agency that has jurisdiction over
the property.  If an off-premises event is to be held on private property, the license
holder shall obtain the
endorsement of the municipal clerk or secretary of the municipal alcoholic
beverage control board and the chief of police of the municipality in which the
event will be held before an off-premises special event permit is issued.

f.     The holder of a craft
manufacturer's license shall be entitled to hold an unlimited number of private
parties per year to occur on the licensed premises including, but not limited
to, birthdays, weddings, anniversaries, civic and political functions, professional
and trade association events, or class reunions and alumni events. The license
holder shall be entitled to coordinate with food vendors for the provision of
food at private parties. Subject to the consent of the licensee, the host of a
private party may provide wine and malt alcoholic beverages purchased off the
licensed premises to be served at the private party. A host of a private party
may hire an employee of the craft manufacturer license holder to pour the
alcoholic beverages served at the party.  The license holder shall not be
required to obtain a permit or provide electronic notification to the director
of private parties.

g.    The holder of a craft
manufacturer's license shall be entitled to hold on the licensed premises not
more than 25 social affair events hosted by the holder of a social affair
permit issued pursuant to R.S.33:1-74. Subject to the consent of the license
holder, the holder of the social affair permit may sell and serve any wine and
malt alcoholic beverages for on-premises consumption only, provided the wine
and malt alcoholic beverages are obtained in accordance with regulations
promulgated by the director governing the issuance of social affair permits.  A
host of a social affair permitted event may hire employees [or agents] of the
licensee to pour the alcoholic beverages served at the event. The holder of
this license shall be entitled to coordinate with food vendors to provide food at social affair permitted events.  The holder of this license shall be entitled to sell the
products manufactured pursuant to the license for consumption off the craft
manufacturer's premises during a social affair permitted event.

h.    The holder of a craft
manufacturer's license shall be entitled to sell the holder's products at a
discount for promotional purposes, provide targeted discounts, and establish
membership programs that offer discounts, provided that the licensee's products
are not sold below the cost of manufacturing the product.  Nothing in this
subsection shall waive the requirement that the holder of a craft
manufacturer's license file a current price list with the division in
accordance with rules and regulations.

i.     The holder of a craft
manufacturer's license shall be entitled to exercise the privileges established
pursuant to this section and R.S.33:1-10 regardless of whether the property on
which alcoholic beverages are manufactured is owned or leased by the licensee.

j.     The holder of a craft
manufacturer's license shall be entitled to show or display any televised
program on televisions or other screening devices of any number or size on the
licensed premises.  The televised programs may include any sporting event, including
live-televised championship sporting events.  The holder of this license may
publicly advertise that a televised event will be displayed on the licensed
premises in advance thereof.  The license holder shall not be required to
provide notice to or obtain a permit from the division prior to showing or
displaying any televised event.

k.    The holder of a craft
manufacturer's license who coordinates with a food vendor pursuant to this
section, including, but not limited to, a food truck or restaurant, shall not
own or operate the food vendor.  The holder of a craft manufacturer's license that
is used in connection with a licensed premises that is adjoining a food
vendor's premises shall have its own entrance and exit way to and from the
licensed premises and shall not have a doorway that allows direct access and
egress to the food vendor's premises.

l.     The holder of a craft
manufacturer's license shall not operate on the same licensed premises as the
holder of another craft manufacturer's license.  The holder of a craft
manufacturer's license shall not jointly control or operate a [salesroom] tasting
room with the holder of another craft manufacturer's license.

(cf:  P.L.2023, c.290, s.1)

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

33:1-10.  Plenary brewery
license.  1a.  The holder of this license shall be entitled, subject to rules
and regulations, to brew any malt 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 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, or 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.
The holder of this license shall not be required to pay a fee to the division
for the privilege of offering samples pursuant to this section.  If the holder
of this license holds a bonded warehouse bottling license issued pursuant to
subsection 5 of this section, product brewed 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 brewery by the
holder of this license.  The holder of this license shall not sell food or
operate a restaurant on the licensed premises, but may coordinate with food
vendors pursuant to section 1 of P.L.2023, c.290 (C.33:1-10b).  The holder of
this license shall be entitled to engage in the privileges established pursuant
to section 1 of P.L.2023, c.290 (C.33:1-10b).

The fee for this license shall
be graduated as follows:

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.

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 of any malt
alcoholic beverage.  For the purposes of this subsection, "product"
means any malt 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 alcoholic beverages in a quantity to be expressed
in such license not in excess of 300,000 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 and retailers licensed in accordance with
this chapter and to sell and distribute without this State to any persons
pursuant to the laws of those 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
restricted brewery license.  The amount of malt alcoholic beverages that may be
sold and distributed directly to retailers pursuant to this subsection on an
annual basis shall be not more than 50 percent of the product manufactured in
that year by the holder of this license.  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.

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 of any malt
alcoholic beverage product.  For the purposes of this subsection, "product"
means any malt alcoholic beverage that is produced on the premises licensed
under this subsection.

Farm brewery license.  1d.
The holder of this license shall be entitled, subject to rules and regulations,
to brew any malt alcoholic beverages in a quantity to be expressed in the
license not in excess of 2,500 barrels of 31 fluid gallons per year and to sell
and distribute its 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 the sale and
distribution and to maintain a warehouse, provided the delivery of its products by the holder of this license to retailers
licensed under this chapter shall be from inventory in a warehouse located in
this State which is operated under a farm brewery license. The holder of this
license shall be entitled to sell at retail its products to consumers for
consumption 1on
or1
off the licensed premises and to offer samples for sampling purposes only.  The
license shall be issued only when the brewery at which such malt alcoholic
beverages are brewed is located and constructed upon a tract of land
exclusively under the control of the licensee, the licensee is actively engaged
in farming on or adjacent to the brewery premises, and the malt alcoholic
beverages 1[are
substantially produced from]
contain at least 51 percent of its ingredients from1 hops 1,
grains1
or other ingredients grown or cultivated on that tract of land.  The holder of
this license shall not sell or offer food for consumption on the licensed
premises, but may coordinate with food vendors
to provide food on the licensed premises and provide menus to
customers for the sale of food.

The fee for this license shall
be graduated as follows: to manufacture between 1,200 and 2,500 barrels per
year, $300; to manufacture between 100 and 1,199 barrels per year, $200; to
manufacture fewer than 100 barrels per year, $100.  An individual or entity
shall not hold more than one farm brewery license.

The holder of this license
shall have the right to sell and distribute its products to retailers licensed
in accordance with this chapter, except that the holder of this license shall
not use a common carrier for the distribution. The fee for this additional
privilege shall be $100.

For purposes of this
subsection, "sampling" means the selling at a nominal charge or the
gratuitous offering of an open container not exceeding one and one-half ounces
of a malt alcoholic beverage.

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, except as otherwise provided in this subsection for certain
alternating proprietorship agreements, 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 samples for sampling purposes only.  The fee for this license shall be
$938.  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.  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 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 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.

An applicant for a plenary
winery license or the holder of a plenary winery license may apply to the
director for approval to enter into an agreement with a host New Jersey winery
to use the host's equipment and space in an alternating proprietorship for
production of wine, provided that the applicant or holder has obtained approval
of the proposed alternating proprietorship arrangement from the Alcohol and
Tobacco Tax and Trade Bureau.  The director shall approve the agreement if the
director determines that the Alcohol and Tobacco Tax and Trade Bureau has
approved the agreement and the agreement does not violate any applicable New
Jersey alcohol licensing and taxation laws and related regulations or special
rulings of the director.  The director shall approve or deny the application no
later than 180 days after receipt of the application, unless the applicant
agrees to an extension.

An applicant for a plenary
winery license who also applies to the director to enter into an alternating
proprietorship agreement pursuant to this subsection shall, upon approval by
the director of both applications, be permitted to grow and cultivate grapes or
fruit used in the production of wine on at least three acres within a five-mile
radius of the host winery premises.

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 samples for sampling purposes only.  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, except in the case of
certain alternating proprietorship agreements, as provided in this subsection,
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.  No farm winery license
shall be held by the holder of a plenary winery license.

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.  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 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 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.

An applicant for a farm winery
license or the holder of a farm winery license may apply to the director for
approval to enter into an agreement with a host New Jersey winery to use the
host's equipment and space in an alternating proprietorship for production of
wine, provided that the applicant or holder has obtained approval of the
proposed alternating proprietorship arrangement from the Alcohol and Tobacco
Tax and Trade Bureau.  The director shall approve the agreement if the director
determines that the Alcohol and Tobacco Tax and Trade Bureau has approved the
agreement and the agreement does not violate any applicable New Jersey alcohol
licensing and taxation laws and related regulations or special rulings of the
director.  The director shall approve or deny the application no later than 180
days after receipt of the application, unless the applicant agrees to an
extension.

An applicant for a farm winery
license who also applies to the director to enter into an alternating
proprietorship agreement pursuant to this subsection shall, upon approval by
the director of both applications, be permitted to grow and cultivate grapes or
fruit used in the production of wine on at least three acres within a five-mile
radius of the host winery premises.

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 one and one-half ounces
of any wine.

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 for each salesroom.
Licensees shall not jointly control and operate salesrooms.  The annual fee for
this license shall be $938.  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.  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.).

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.

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 samples 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.  The holder of
this license shall not operate a restaurant on the licensed premises, but may
coordinate with food vendors pursuant to section 1 of P.L.2023, c.290
(C.33:1-10b).  The holder of this license shall be entitled to engage in the
privileges established pursuant to section 1 of P.L.2023, c.290 (C.33:1-10b).
The fee for this license shall be $938.

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 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.

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 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 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 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 and for consumption off the premises
in a quantity of not more than five liters per person.  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 one-half ounce serving of distilled alcoholic beverage produced on
the distillery premises.  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 shall be entitled to engage in the privileges established
pursuant to section 1 of P.L.2023, c.290 (C.33:1-10b).

The holder of this license
shall not sell food or operate a restaurant on the licensed premises, but may
coordinate with food vendors pursuant to section 1 of P.L.2023, c.290
(C.33:1-10b).  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.

Historic distillery license.
3e.  A historic distillery license shall be issued for use in connection with a
premises that is included in the New Jersey Register of Historic Places
established pursuant to P.L.1970, c.268 (C.13:1B-15.128 et seq.).  The holder
of this license shall be entitled, subject to rules and regulations, to
manufacture any 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.
The holder of this license also shall be entitled to sell this product for
consumption off the premises in a quantity of not more than five liters per
person.

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 one-half ounce serving of distilled alcoholic beverage produced on
the distillery premises. If the holder of this license holds a bonded warehouse
bottling license issued pursuant to subsection 5 of this section, products
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 shall be entitled to engage in the privileges established
pursuant to section 1 of P.L.2023, c.290 (C.33:1-10b).

The holder of this license
shall not sell food or operate a restaurant on the licensed premises, but may
coordinate with food vendors pursuant to section 1 of P.L.2023, c.290
(C.33:1-10b).  The fee for this license shall be $1,000.

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.2025, c.97, s.1)

3.  Section 3 of P.L.2023,
c.290 (C.33:1-24.3a) is amended to read as follows:

3. a. As used in this act:

"Contiguous" means
when municipalities in this State are adjoined [by land] and share a common boundary line
[, but
does not include municipalities that are separated solely by a river, lake,
bay, or other body of water].

"Inactive license"
means a plenary retail consumption license that has been placed on inactive
status and renewed as authorized by the provisions of section 1 of P.L.1977,
c.246 (C.33:1-12.39) for two consecutive license terms.

"Receiving
municipality" means a municipality that enters into an agreement to
acquire an inactive plenary retail consumption license from a contiguous
sending municipality as part of an economic redevelopment plan or in connection
with a premises located within a redevelopment, improvement, or revitalization
area pursuant to P.L.2023, c.290 (C.33:1-10b et al.).

"Redevelopment,
improvement, or revitalization area" means an urban enterprise zone
designated pursuant to P.L.1983, c.303 (C.52:27H-60 et seq.) or P.L.2001, c.347
(C.52:27H-66.2 et al.); a downtown business improvement zone designated
pursuant to P.L.1998, c.115 (C.40:56-71.1 et seq.); a pedestrian mall or
pedestrian mall improvement or special improvement district as defined in
section 2 of P.L.1972, c.134  (C.40:56-66); a transit oriented development as
defined by section 2 of P.L.2011, c.149 (C.34:1B-243); an area determined to be
in need of redevelopment pursuant to sections 5 and 6 of P.L.1992, c.79
(C.40A:12A-5 and 40A:12A-6); or an area determined to be in need of
rehabilitation pursuant to section 14 of P.L.1992, c.79 (C.40A:12A-14), or any
improvement which is 100 percent new construction, which is an entirely new
improvement not previously occupied or used for any purpose.

"Sending
municipality" means a municipality from which an inactive license is
issued pursuant to P.L.2023, c.290 (C.33:1-10b et al.) to the governing body of
a contiguous receiving municipality as part of an economic redevelopment plan
or in connection with a premises located within a redevelopment, improvement,
or revitalization area.

b.    [A receiving
municipality in which the number of plenary retail consumption licenses has
reached the population limitation established in section 2 of P.L.1947, c.94
(C.33:1-12.14) may issue a request for proposal to acquire from a license
holder an additional inactive plenary retail consumption license that was
initially issued by a contiguous sending municipality.  The inactive license
acquired pursuant to this section shall be used in connection with a premises
as part of an economic redevelopment plan or a redevelopment, improvement, or
revitalization area.  A sending municipality shall not be entitled to transfer
a license pursuant to this section unless the sending municipality and
receiving municipality are contiguously located.] (Deleted by amendment,
P.L.    , c.   ) (pending before the Legislature as this bill)

c.    [The request
for proposal issued pursuant to subsection b. of this section shall specify a
time and date after which no further applications from license holders will be
accepted.  The request shall be published in a newspaper circulating generally
throughout the State by not less than two insertions, one 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.  In addition, the request for proposal shall be
published by the governing body on the official Internet website of the
receiving municipality.  The request for proposal shall require that all bids
be sealed and remain confidential to other bidders.  Notwithstanding the
provisions of section 1 of P.L.1981, c. 416 (C.33:1-19.3) the license shall be
awarded to the highest qualified bidder.

The request for proposal shall
establish a minimum bid amount, which shall be based on the average sale price
of the three most recent plenary retail consumption license sales in the
receiving municipality or an appraisal completed pursuant to this subsection at
the receiving municipality's expense, whichever amount is greater.

The appraisal process shall
include an examination of previous transactions in the receiving municipality
or surrounding municipalities, as the case may be, and shall reflect what a
willing buyer, under no pressure to buy, would pay a willing seller, under no
pressure to sell, for a plenary retail consumption license in that municipality
or municipalities, as the case may be.]
(Deleted by amendment, P.L.    , c.   ) (pending before the Legislature as
this bill)

d.    [The holder of
an inactive plenary retail consumption license shall apply to the governing
body of the sending municipality for permission to transfer the inactive
plenary retail consumption license from the sending municipality prior to the
submission of bids in response to the request for proposal.  The governing body
of the sending municipality may approve the application only by a resolution
adopted by a majority vote.  The sending municipality shall not require the
applicant to disclose the location of the proposed licensed premises.

After the receiving
municipality accepts a successful bid, the sending municipality shall submit to
the director notice of the intent to transfer a license at least 90 days prior
to the transfer.  The sending and receiving municipalities shall adopt by majority
vote identical resolutions authorizing the transfer of the license.  The
identical resolutions shall establish the license transfer fee of $25,000 or
more, which shall be paid by the license holder and deposited in the general
fund of the sending municipality.  Prior to adopting the resolution pursuant to
this section, the governing body of both municipalities shall give special
consideration as to whether sufficient attempts were made by the license holder
to use or transfer the license for use in connection with a premises located in
the sending municipality.]
(Deleted by amendment, P.L.    , c.   ) (pending before the Legislature as
this bill)

e.    [A receiving
municipality that acquires a license pursuant to subsection b. of this section
shall be entitled to offer the license at public sale pursuant to P.L.1975,
c.275 (C.33:1-19.1 et seq.).  A license issued by the receiving municipality to
a qualified bidder that is not actively used in connection with the operation
of a premises within two years of the issuance date shall expire and shall not
be reissued by the receiving municipality.  The license holder shall not be
entitled to appeal the expiration of the license to the director or a court of
law unless the license holder has been deprived of the use of the licensed
premises as a result of eminent domain, fire, or other casualty, and
establishes by affidavit filed with the director that the license holder is
making a good faith effort to resume active use of the license in connection
with the operation of a licensed premises.]
(Deleted by amendment, P.L.    , c.   ) (pending before the Legislature as
this bill)

f.     [A receiving
municipality shall be entitled to acquire one inactive license pursuant to this
section in each calendar year but not more than two inactive licenses in five
calendar years.]
(Deleted by amendment, P.L.    , c.   ) (pending before the Legislature as
this bill)

g.    [A plenary
retail consumption license transferred pursuant to this section shall entitle
the license holder to sell alcoholic beverages for consumption on the licensed
premises, but not for consumption off the licensed premises.  Licenses
transferred pursuant to this section shall otherwise be subject to all the
provisions of Title 33 of the Revised Statutes, rules and regulations
promulgated by the director, and municipal ordinances.] (Deleted
by amendment, P.L.    , c.   ) (pending before the Legislature as this bill)

h.    [A license
issued pursuant to this section shall not be included in the total combined
population necessary to issue a new plenary retail consumption or seasonal
retail consumption license pursuant to section 2 of P.L.1947, c.94
(C.33:1-12.14).] (Deleted
by amendment, P.L.    , c.   ) (pending before the Legislature as this bill)

(cf:  P.L.2023, c.290, s.3)

4.    (New section)
a. A governing board or body of a sending municipality that is authorized
to issue a new plenary retail consumption license shall be entitled to offer
the license at public sale pursuant to P.L.1981, c.416 (C.33:1-19.3 et seq.) or
offer the license at public sale to the highest bidding governing body of any
other municipality in this State.

A license transferred to a
receiving municipality pursuant to this section only shall be used in
connection with a premises as part of an economic redevelopment plan or located
within a redevelopment, improvement, or revitalization area as defined in section
3 of P.L.2023, c.290 (C.33:1-24.3a). The sending municipality shall not
be entitled to issue a new license pursuant to P.L.1975, c.275 (C.33:1-19.1 et
seq.) to replace the license transferred to the receiving municipality pursuant
to this section.

A receiving municipality may
issue a license obtained under any provision of this act by either the
historical method or through competitive bidding.

Notwithstanding anything
contained in the Municipal Finance Law to the contrary, a municipality may
obtain a license as set forth in this act either through capital funding,
borrowing or any other methods as may be approved by the Division of Local
Government Services in the Department of Community Affairs.

b.    Notice of the public
sale shall be provided to the director and other municipalities at least 90
days prior to the sale. The notice to the municipalities shall specify
the minimum acceptable bid and general conditions of sale, including a
statement that the sending municipality reserves the right to reject all bids
where the highest bid is not accepted.

The funds derived from the
sale shall be remitted to the municipal treasurer for the general use of the
sending municipality.

c.    A receiving municipality
that acquires a license pursuant to subsection a. of this section shall be
entitled to offer the license at public sale pursuant to P.L.1975, c.275
(C.33:1-19.1 et seq.).

d.    A license transferred to
a receiving municipality and issued to a qualified bidder that is not actively
used in connection with the operation of a premises within two years of the
issuance date shall revert to the receiving municipality. The receiving
municipality may choose to reissue the license in the public bid process
outlined elsewhere in this chapter or may return the license to the sending
municipality for the sending municipality to reissue, should it choose to do
so.  The license holder shall not be entitled to appeal the expiration of the
license to the director or a court of law unless the license holder has been
deprived of the use of the licensed premises as a result of 1failure
to obtain governmental approval despite a good faith effort to do so1 eminent
domain, fire, or other casualty, and establishes by affidavit filed with the
director that the license holder is making a good faith effort to resume active
use of the license in connection with the operation of a licensed
premises.

e.  1Notwithstanding
any provision contained in the Municipal Finance Law to the contrary, a
municipality may obtain a license as set forth in this section either through
capital funding, borrowing, or any other method as may be approved by the
Division of Local Government Services in the Department of Community Affairs.1

1[e.] f.1     A
receiving municipality shall not be entitled to acquire more than one license
pursuant to this section each calendar year.

1[f.] g.1     A person
who would fail to qualify as a licensee under Title 33 of the Revised Statutes
shall not be permitted to hold an interest in a license transferred under the
provisions of this section.

1[g.] h.1     Licenses
transferred pursuant to the provisions of this section shall be subject to all
the provisions of Title 33 of the Revised Statutes, rules and regulations
promulgated by the director, and municipal ordinances.

1[h.] i.1     A
license issued pursuant to this section shall not be included in the total
number of licenses permitted based upon population necessary to issue a new
plenary retail consumption or seasonal retail consumption license pursuant to
section 2 of P.L.1947, c.94 (C.33:1-12.14).

5.    (New section)
a. The holder or contract purchaser of an inactive plenary retail
consumption license issued by any municipality may apply to the governing
bodies of the 1[issuing] sending1
municipality and a receiving municipality located within the same county or a
contiguous municipality not in the same county to use the license in connection
with a premises located in the receiving municipality. An inactive
plenary retail consumption license used in a receiving municipality only shall
be used as part of an economic redevelopment plan or in connection with a
premises located within a redevelopment, improvement,
or revitalization area as defined in section 3 of P.L.2023, c.290 (C.33:1-24.3a).
A license used in the receiving municipality pursuant to this section shall permanently
remain in the redevelopment, improvement, or revitalization area of the
receiving municipality and shall not be transferred to any other location
within the receiving municipality nor any other municipality. The sending
municipality shall not be entitled to issue a new license pursuant to P.L.1975,
c.275 (C.33:1-19.1 et seq.) to replace the license transferred to the receiving
municipality pursuant to this section.

b.    The sending and
receiving municipalities shall submit to the director notice of the intent to
transfer a license at least 90 days prior to the transfer. The 1[issuing] sending1 and
receiving municipalities shall adopt by majority vote identical resolutions
authorizing the transfer of the license. The identical resolutions shall
establish the license transfer fee, which shall be paid by the license holder
and deposited in the general fund of the host municipality. Prior to
adopting the resolution pursuant to this section, the governing body of both
municipalities shall give special consideration as to whether sufficient
attempts were made by the license holder to use or transfer the license for use
in connection with a premises located in the sending municipality.

A license transferred to a
receiving municipality pursuant to this section and issued to a qualified
bidder that is not actively used in connection with the operation of a premises
within two years of the issuance date shall revert to the receiving municipality.
The receiving municipality may choose to reissue the license in the public bid
process outlined elsewhere in this chapter or may return the license to the
sending municipality for the sending municipality to reissue, should it choose
to do so.  The license holder shall not be entitled to appeal the expiration of
the license to the director or a court of law unless the license holder has
been deprived of the use of the licensed premises as a result of  1failure
to obtain governmental approval despite a good faith effort to do so,1 eminent
domain, fire, or other casualty, and establishes by affidavit filed with the
director that the license holder is making a good faith effort to resume active
use of the license in connection with the operation of a licensed
premises.

c.    A receiving municipality
shall not be entitled to acquire more than one license pursuant to this section
in each calendar year.

d.    Licenses transferred
pursuant to the provisions of this section shall be subject to all the
provisions of Title 33 of the Revised Statutes, rules and regulations
promulgated by the director, and municipal ordinances.

e.    A license issued
pursuant to this section shall not be included in the total number of licenses
permitted based upon population necessary to issue a new plenary retail
consumption or seasonal retail consumption license pursuant to section 2 of
P.L.1947, c.94 (C.33:1-12.14).

6.    (New section)
a. A receiving municipality in which the number of plenary retail
consumption licenses has reached the population limitation established in
section 2 of P.L.1947, c.94 (C.33:1-12.14) may issue a request for proposal to
acquire from a license holder an additional inactive plenary retail consumption
license that was initially issued by any other 1[host] sending1
municipality in this State. The inactive license acquired pursuant to
this section shall be used in connection with a premises as part of an economic
redevelopment plan or a redevelopment, improvement, or revitalization area as
defined in section 3 of P.L.2023, c.290 (C.33:1-24.3a).

b.    The request for proposal
issued pursuant to subsection a. of this section shall specify a time and date
after which no further applications from license holders will be
accepted. The request shall be published in a newspaper circulating
generally throughout the State by not less than two insertions, one 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. In addition, the request for proposal
shall be published by the governing body on the official Internet website of
the receiving municipality. The request for proposal shall require
that all bids shall be sealed and remain confidential to other bidders.
Notwithstanding the provisions of section 1 of P.L.1981, c.416
(C.33:1-19.3) the license shall be awarded to the lowest qualified
bidder.

c.  The holder of an inactive
plenary retail consumption license shall apply to the governing body of the
sending municipality for permission to transfer the inactive plenary retail
consumption license from the sending municipality prior to submitting a bid in
response to the request for proposal. The governing body of the sending
municipality may approve the application only by a resolution adopted by a
majority vote. The sending municipality shall not require the applicant
to disclose the location of the proposed licensed premises.

After the receiving
municipality accepts a successful bid, the sending municipality shall submit to
the director notice of the intent to transfer a license at least 90 days prior
to the transfer. The sending and receiving municipalities shall adopt by
majority vote identical resolutions authorizing the transfer of the
license. The identical resolutions shall establish the license transfer
fee, which shall be paid by the license holder and deposited in the general
fund of the sending municipality. Prior to adopting the resolution
pursuant to this section, the governing body of both municipalities shall give
special consideration as to whether sufficient attempts were made by the
license holder to use or transfer the license for use in connection with a
premises located in the host municipality.

d.  1A
receiving municipality that acquires a license pursuant to subsection c. of
this section shall be entitled to offer the license at public sale pursuant to
P.L.1975, c.275 (C.33:1-19.1 et seq.).1 A license transferred to a
receiving municipality and issued to a qualified bidder that is not actively
used in connection with the operation of a premises within two years of the
issuance date shall revert to the receiving municipality. The receiving
municipality may choose to reissue the license in the public bid process 1[outlined
elsewhere in this chapter]
pursuant to P.L.1975, c.275 (C.33:1-19.1 et seq.)1 or may
return the license to the sending municipality for the sending municipality to
reissue, should it choose to do so.  The license holder shall not be entitled
to appeal the expiration of the license to the director or a court of law
unless the license holder has been deprived of the use of the licensed premises
as a result of  1failure
to obtain governmental approval despite a good faith effort to do so1 eminent
domain, fire, or other casualty, and establishes by affidavit filed with the
director that the license holder is making a good faith effort to resume active
use of the license in connection with the operation of a licensed
premises.

e.  1Notwithstanding
any provision contained in the Municipal Finance Law to the contrary, a
municipality may obtain a license as set forth in this section either through
capital funding, borrowing or any other method as may be approved by the
Division of Local Government Services in the Department of Community Affairs.

f.1 A
receiving municipality shall not be entitled to acquire more than one license
pursuant to this section in each calendar year.

1[f.] g.1
Licenses transferred pursuant to the provisions of this section shall be
subject to all the provisions of Title 33 of the Revised Statutes, rules and
regulations promulgated by the director, and municipal ordinances.

[g.] h.1 A
license issued pursuant to this section shall not be included in the total
combined population necessary to issue a new plenary retail consumption or
seasonal retail consumption license pursuant to section 2 of P.L.1947, c.94
(C.33:1-12.14).

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

1. a. On and after the
effective date of P.L.2023, c.290 (C.33:1-10b et al.), a 1[Class C] plenary
retail consumption1
license as defined in R.S.33:1-12 shall not be renewed if the license has not
been actively used in connection with the operation of a licensed premises
within two consecutive license terms.  A license that remains inactive at the
end of the two-year period shall expire, provided, however, the governing body
of a municipality may in its discretion extend the period during which the
license may remain inactive [for
an additional year]
, if it
is satisfied that the licensee is
making a good faith effort to activate or transfer the license either within or
without the municipality. If the governing board of
a municipality denies a
licensee’s request to
extend the expiration
date of its inactive license, a licensee may appeal to the director within 30 days after receipt of the notice of denial.

b.    Notwithstanding
subsection a. of this section, if the licensee has been deprived of the use of
the licensed premises as a result of a failure to obtain governmental
approval despite a good faith effort to do so, eminent domain, fire, or
other casualty, and establishes by affidavit filed with the director that the
licensee is making a good faith effort to resume active use of the license in
connection with the operation of a licensed premise, the time period provided
for in this section shall be automatically extended for an additional period of
two license terms.

c.    Following the effective
date of P.L.2023, c.290 (C.33:1-10b et al.), prior to the expiration of an
inactive license pursuant to subsection a. of this section, an inactive license
shall be:

(1) actively used by the
license holder;

(2) transferred in a private
transaction for fair market value to another person who intends to use the
license. The transferee shall actively use the license in connection with a
premises upon receipt of the license; or

(3) transferred from a sending
municipality to a receiving municipality in accordance with 1[section 3 of
P.L.2023, c.290 (C.33:1-24.3a)]
sections 4 through 6 of P.L.      , c.    (C.    ) (pending before the
Legislature as this bill1.

d.    The director shall
divide the inactive plenary retail consumption licenses that were placed on
inactive status prior to the effective date of [P.L.2023, c.290 (C.33:1-10b et
al.)] P.L. , c. (C. )
(pending before the Legislature as this bill) into quartiles based on the
total length of time that the licenses have been inactive.  The licenses shall
be transferred pursuant to subsection c. of this section in accordance with the
following time schedule:

(1) the quartile that has been
inactive for the longest period of time shall be transferred pursuant to
subsection c. of this section within one year of the effective date of [P.L.2023,
c.290 (C.33:1-10b et al.)]
P.L.    , c.    (C.     ) (pending before the Legislature as this bill);

(2) the quartile that has been
inactive for the second longest period of time shall be transferred pursuant to
subsection c. of this section within two years following the effective date of [P.L.2023,
c.290 (C.33:1-10b et al.)]
P.L.    , c.    (C.     ) (pending before the Legislature as this bill);

(3) the quartile that has been
inactive for the third longest period of time shall be transferred pursuant to
subsection c. of this section within three years following the effective date
of [P.L.2023,
c.290 (C.33:1-10b et al.)]
P.L.    , c.    (C.     ) (pending before the Legislature as this bill);
and

(4) the quartile that has been
inactive for the shortest period of time shall be transferred pursuant to
subsection c. of this section within four years following the effective date of
[P.L.2023,
c.290 (C.33:1-10b et al.)]
P.L.    , c.    (C.     ) (pending before the Legislature as this bill).

(5)  Any licenses that were
subject to prior versions of this section and were divided into quartiles and
subsequently denied the ability to be actively used are hereby reissued, and
subject to the revised dates set forth by P.L.    , c.    (C.     ) (pending
before the Legislature as this bill).

e.    [Any request
for relief under this section shall be accompanied by a nonreturnable filing
fee of $100 payable to the director.]
(Deleted by amendment, P.L.    , c.   ) (pending before the Legislature as
this bill)

f.  Notwithstanding the limitation set forth in section 2
of P.L. 1947, c.94 (C. 33:1 -12.14), a 1[Class C] plenary
retail consumption1
license that is not in active use or transferred either within or without
the municipality in accordance with subsection c.
of this section may, following expiration of time to
appeal or if an appeal
has been taken, relief has been denied, be reissued at public sale in a manner
consistent with the provisions of P.L. 1975, c. 275 (C. 33:1-19.1 to -19.6) for
use at a licensed premises located within the municipality.

Any 1[Class C] plenary
retail consumption1
license issued pursuant to
this subsection 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.

1g.
The provisions of this section requiring an inactive plenary retail consumption
license to expire shall not apply to a governing body of a municipality that
holds any inactive plenary retail consumption license for the purpose of
issuing that license for use in connection with a premises located within a
redevelopment, improvement, or revitalization area as defined by section 3 of
P.L.2023, c.290 (C.33:1-24.3a).1

(cf:  P.L.2023, c.290, s.4)

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 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 expired license which was 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.

e.    Notwithstanding the
limitation set forth in section 2 of P.L.1947, c.94 (C.33:1-12.14) concerning
the number of licenses that may be issued within a municipality, the governing
body of a municipality in which an inactive 1[Class C] plenary retail consumption1 license
has been permitted to lapse and has not been renewed [within eight years immediately
preceding the]
any time prior to the enactment of P.L.2023, c.290 (C.33:1-10b et al.) or
any time thereafter may issue a new 1[Class C] plenary
retail consumption1
license at public sale for use at a licensed premises located within the
municipality in a manner consistent with the provisions of P.L.1975, c.275 [(C.33:1-19.1
et seq.)]
(C.33:1-19.1 through C.33:1-19.6).

Any 1[Class C] plenary
retail consumption1
license issued pursuant to this subsection 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 regulation promulgated
by the director.

(cf:  P.L.2023, c.290, s.5)

9.    Section 6 of P.L.2023,
c.290 (C.33:1-12.55) is amended to read as follows:

6.    "Eligible
municipality" means a municipality in which at least one shopping mall is
located and the number of plenary retail consumption licenses has reached the
population limitation established in section 2 of P.L.1947, c.94
(C.33:1-12.14).

"Enforcing agency"
means the enforcing agency in any municipality designated to administer and
enforce the "State Uniform Construction Code Act" pursuant to section
8 of P.L.1975, c.217 (C. 52:27D-126), and regulations promulgated thereunder.

"Shopping mall"
means a standalone, publicly accessible enclosed walkway or hall area that
serves to connect retail, entertainment, food and beverage establishments, [and] or
office space that includes pad sites located on the same parcel or premises
as the shopping mall and:

[that] (1) is under common
ownership or has ownership interests in common or shares ownership or
control among multiple entities or
control and connects with or provides access to separate retail establishments,
including at least one restaurant or other establishment that serves alcoholic
beverages pursuant to a [plenary] retail
consumption license; and

(2) was constructed
prior to the effective date of P.L.2023, c.290 (C.33:1-10b et al.) or for which
an application for a construction permit has been declared complete by an
enforcing agency prior to the effective date of P.L.2023, c.290 (C.33:1-10b et
al.).

"Strip mall" means a
retail shopping complex that consists of stores, restaurants, or other
businesses in adjacent spaces or storefronts in one or more buildings that are
connected by a doorway or open onto a common parking lot or outdoor pedestrian
walkway.

b.    The governing body of an
eligible municipality may, by ordinance or resolution, issue within the
municipality not more than:

(1)  two special licenses to a
person or other legal entity for use in connection with a food and beverage
establishment located within a shopping mall with a minimum gross square
footage of not less than 750,000 on the effective date of section 6 of
P.L.2023, c.290 (C.33:1-12.55); and

(2)  four special licenses to
a person or other legal entity for use in connection with a food and beverage
establishment located within a shopping mall with a gross square footage of
1,500,000 or more on the effective date of section 6 of P.L.2023, c.290
(C.33:1-12.55).

c.    A special license issued
pursuant to subsection b. of this section shall authorize the sale of alcoholic
beverages for immediate consumption on the operator's premises.

d.    A person who would fail
to qualify as a licensee under Title 33 of the Revised Statutes shall not be
permitted to hold an interest in a special license under the provisions of this
section.

e.    Licenses shall be
subject to all the provisions of Title 33 of the Revised Statutes, rules and
regulations promulgated by the director, and municipal ordinances.

f.     A special license
issued pursuant to this section shall not be transferred for use in connection
with any premises other than a premises that is operated as a food and beverage
establishment located within the same shopping mall.

g.    Application for the
initial issuance and renewal of each license shall be made to the municipal
governing body on an annual basis.  The fee for the initial issuance of the
license shall be at least $250,000.

One half of the initial
issuance fee for the license shall be paid upon the issuance of the license and
the other half of that amount shall be paid one year later.  The governing body
of the municipality shall establish an annual fee for the license which shall
not exceed the fee which may be imposed by a municipality for a plenary retail
consumption license pursuant to R.S.33:1-12. The fee for the initial issuance
of the license shall be paid to the eligible municipality in which the license
is issued.

h.    If the individual
corporation or entity holding the license determines to transfer a special
license issued pursuant to this section, the license shall be sold for the sum
paid pursuant to subsection g. of this section.  A special license issued
pursuant to this section shall not be transferred to the governing body of
another municipality or for use in connection with any premises other than a
premises that is operated as a food and beverage establishment located within a
shopping mall.

i.     (Deleted by amendment,
P.L.2024, c.31)

j.     A special license
issued pursuant to this section shall not be subject to the population
limitation established pursuant to section 2 of P.L.1947, c.94 (C.33:1-12.14).
An interest in a special license issued pursuant to this section shall be
excluded in determining the maximum number of plenary retail consumption
licenses issued to a person pursuant to P.L.1962, c.152 (C.33:1-12.31 et seq.).

k.    The provisions of this
section shall not apply to a strip mall as defined in subsection a. of this
section.

l.     Pursuant to the
"Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.),
the director may adopt rules and regulations to effectuate the purposes of this
act.

(cf:  P.L.2024, c.31, s.3)

10.  This act shall take
effect immediately.
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