An Act concerning alcoholic beverage licenses, supplementing Title 33 of the Revised Statutes, and amending R.S.33:1-25.

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

1. (New section) a. As used in this act:

"Groceries and other foodstuffs" means dairy products; meat and delicatessen products; produce products; seafood products; carbonated beverages; coffee and other beverages; snack foods; candy products; baked products; paper products; household cleaning items; health and beauty products; frozen foods; pet foods and supplies; and any other edible product not previously listed.

"Retail food store" means any retail establishment where groceries and other foodstuffs are regularly and customarily sold in a bona fide manner for off premises consumption.

"Retail store floor area" means an area of a retail store where, merchandise including, but not limited to, groceries and other foodstuffs are displayed and sold, and the display and sale of alcoholic beverages is prohibited.

"Mercantile business" means any place where goods, merchandise, or any other products are offered for sale.

"Sliding door" means a door comprised of one or more movable panels that opens horizontally across a doorway upon a fixed track.

"Swinging door" means a hinged door comprised of one or more panels which oscillates inwardly or outwardly.

b. The holder of a plenary retail distribution license who uses such a license, subject to rules and regulations, in connection with the operation of a retail food store or mercantile business shall sell alcoholic beverages on a separate premises that is situated directly adjacent to the retail food store or mercantile business, and shall be prohibited from selling alcoholic beverages in the retail store floor area where merchandise including, but not limited to, groceries or other food stuffs or any other products are sold at retail.

The separate premises where alcoholic beverages are sold shall:

(1) be divided from the retail food store area by walls that extend from the floor to the ceiling of the licensed premises and shall be of such fire-resistant rating as comports with the "State Uniform Construction Code Act," P.L.1975, c.217 (C.52:27D-119 et seq.);

(2) have its own entrance and exit way to and from the building, and may have a doorway that provides entrance and egress to a retail food store floor area. Any doorway that separates the retail food store floor area from the separate premises where alcoholic beverages are sold shall be equipped with a locking door not more than eight feet in width. The door shall be a swinging door or a sliding door which may operate automatically; and

(3) be equipped with a separate cash register which shall be used solely for the purchase of alcoholic beverages and merchandise other than alcoholic beverages which may be sold pursuant to subsection 3.b. of R.S.33:1-12. The cash register shall be programmed to direct the cashier to request that the purchaser produce valid identification demonstrating that the purchaser is of legal age to purchase alcoholic beverages. The holder of a plenary retail distribution license or licenses who uses such a license in connection with the operation of a retail food store shall not sell alcoholic beverages from a cash register that is located in the retail food store floor area.

c. The holder of a plenary retail distribution license or licenses used in connection with the operation of a retail food store or mercantile business prior to July 1, 2013 shall be exempt from the restrictions set forth in subsection b. of this section and may continue to offer alcoholic beverages for sale in the same retail store floor area as merchandise including, but not limited to, groceries and other food stuffs on the same licensed premises following the effective date of this act. This exemption shall not be transferable if any percentage of a beneficial interest in the license is transferred to any other person or upon a transfer of the license to any other location. In the event of such a transfer or change in the location of the licensed premises, the licensee shall comply with the provisions of subsection b. of this section.

d. In addition to any penalty that may lawfully be imposed, a licensee who violates this section may be subject to license suspension or revocation and a fine as established by the director.

e. Nothing in this section shall prohibit the holder of a plenary retail distribution license from offering retail items for sale in or upon the premises where alcoholic beverages are sold in accordance with subsection 3.b. of R.S.33:1-12.

2. (New section) a. A person shall not acquire a plenary retail distribution license or a plenary retail consumption license with broad package privileges that permits the sale of alcoholic beverages in original containers for consumption off the licensed premises at retail for use in connection with a licensed premises located within 2,500 feet of another licensed premises operated by another holder of a plenary retail distribution license or a plenary retail consumption license with broad package privileges that sells alcoholic beverages in original containers for consumption off the licensed premises at retail. The 2,500 feet shall be measured in the normal way that a pedestrian would properly walk from the nearest entrance of an existing licensed premises to the nearest entrance of the premises sought to be licensed.

b Nothing in this section shall be construed to compel the holder of a plenary retail distribution license or a plenary retail consumption license with broad package privileges to relocate an existing licensed premises or cease the sale of alcoholic beverages if the licensed premises is located within 2,500 feet of another establishment operating under a plenary retail distribution license or a plenary retail consumption license with broad package privileges prior to the effective date of this act.

3. R.S.33:1-25 is amended to read as follows:

33:1-25. No license of any class shall be issued to any person under the age of 18 years or to any person who has been convicted of a crime involving moral turpitude. A plenary retail distribution license or a plenary retail consumption license with broad package privileges that permits the sale of alcoholic beverages in original containers for consumption off the licensed premises shall not be issued to any person under the age of 21 years. A beneficiary of a trust who is not otherwise disqualified to hold an interest in a license may qualify regardless of age so long as the trustee of the trust qualifies and the trustee shall hold the beneficiary's interest in trust until the beneficiary is at least the age of majority.

Each applicant shall submit to the director the applicant's name, address, fingerprints and written consent for a criminal history record background check to be performed. The director is authorized to receive criminal history record information from the State Bureau of Identification in the Division of State Police and the Federal Bureau of Investigation consistent with applicable State and federal laws, rules and regulations. The applicant shall bear the cost for the criminal history record background check, including all costs of administering and processing the check. The Division of State Police shall promptly notify the director in the event a current holder of a license or prospective applicant, who was the subject of a criminal history record background check pursuant to this section, is arrested for a crime or offense in this State after the date the background check was performed.

In applications by corporations, except for club licenses, the names and addresses of, and the amount of stock held by, all stockholders holding 1% or more of any of the stock thereof, and the names and addresses of all officers and of all members of the board of directors must be stated in the application, and if one or more of the officers or members of the board of directors or one or more of the owners, directly or indirectly, of more than 10% of the stock would fail to qualify as an individual applicant in all respects, no license of any class shall be granted. A plenary retail distribution license or a plenary retail consumption license with broad package privileges shall be issued or transferred only to an entity incorporated in this State of which every officer and member of the board of directors is a citizen of the United States, and a majority of the officers and members of the board of directors are domiciled in this State.

In applications for club licenses, the names and addresses of all officers, trustees, directors, or other governing official, together with the names and addresses of all members of the corporation, association or organization, must be stated in the application.

In applications by partnerships, the application shall contain the names and addresses of all of the partners. No license shall be issued unless all of the partners would qualify as individual applicants. A plenary retail distribution license or a plenary retail consumption license with broad package privileges that permits the sale of alcoholic beverages in original containers for consumption off the licensed premises at retail shall not be issued to a partnership unless all of the partners are domiciled in the State of New Jersey.

A photostatic copy of all federal permits necessary to the lawful conduct of the business for which a State license is sought and which relate to alcoholic beverages, or other evidence in lieu thereof satisfactory to the director, must accompany the license application, together with a deposit of the full amount of the required license fee, which deposit to the extent of 90% thereof shall be returned to the applicant by the director or other issuing authority if the application is denied, and the remaining 10% shall constitute an investigation fee and be accounted for as other license fees.

Every applicant for a license that is not a renewal of an annual license shall cause a notice of the making of the application to be published in a form prescribed by rules and regulations, once per week for two weeks successively in a newspaper printed in the English language, published and circulated in the municipality in which the licensed premises are located; but if there shall be no such newspaper, then the notice shall be published in a newspaper, printed in the English language, published and circulated in the county in which the licensed premises are located. No publication shall be required with respect to applications for transportation or public warehouse licenses or with respect to applications for renewal of licenses.

The Division of Alcoholic Beverage Control shall cause a general notice of the making of annual renewal applications and the manner in which members of the public may object to the approving of the applications to be published in a form prescribed by rules and regulations, once per week from the week of April 1 through the week of June 1 in a newspaper printed in the English language published and circulated in the counties in which the premises of applicants for renewals of annual licenses are located. Any application for the renewal of an annual license shall be made by May 1, and none shall be approved before May 1.

Every person filing an application for license, renewal of license or transfer of license with a municipal issuing authority shall, within 10 days of such filing, file with the director a copy of the application together with a nonreturnable filing fee of $200.

Applicants for licenses shall answer questions as may be asked and make declarations as shall be required by the form of application for license as may be promulgated by the director from time to time. All applications shall be duly sworn to by each of the applicants, except in the case of applicants in the military service of the United States whose applications may be signed in their behalf by an attorney-in-fact holding a power of attorney in form approved by the director, and except in cases of applications by corporations which shall be duly sworn to by the president or vice-president. All statements in the applications required to be made by law or by rules and regulations shall be deemed material, and any person who shall knowingly misstate any material fact, under oath, in the application shall be guilty of a misdemeanor. Fraud, misrepresentation, false statements, misleading statements, evasions or suppression of material facts in the securing of a license are grounds for suspension or revocation of the license.

The provisions of section 26 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.2008, c.56. s.1)

4. This act shall take effect immediately.

STATEMENT

This bill places certain restrictions on retailers who sell alcoholic beverages to consumers for off-premises consumption. Specifically, the bill regulates the manner in which alcoholic beverages are sold in mercantile businesses and retail food stores, and prohibits a retailer who acquires a new license from being located within 2,500 feet of another licensed retail premises. The bill also establishes certain age and residency requirements for persons applying for a retail distribution license.

The bill sets forth certain safeguards against underage drinking by requiring that food stores and other mercantile businesses display and sell alcoholic beverages on a separate premise that is situated directly adjacent to the retail store area. In addition, the areas designated for selling alcoholic beverages are required to have a separate entrance and exit, but permitted to have a doorway that leads directly to and from the food store floor area. The doorway is to be equipped with a sliding or swinging door not more than eight feet wide. A separate cash register is to be located in the designated area reserved for the sale of alcoholic beverages that is programmed to remind the cashier to request that a purchaser show proper identification. The bill provides an exemption for licensees who sold alcoholic beverages in the same floor area as groceries or other retail items prior to July 1, 2013. Under the bill, a licensee who sold alcoholic beverages in the same floor area as groceries or other retail items prior to July 1, 2013 may continue to do so, unless any percentage of a beneficial interest in the license is transferred to another person, or the licensed premises changes locations.

Finally, the bill establishes certain age and residency requirements upon applicants for a retail license. Currently, an alcoholic beverage license may not be issued to any person under the age of 18. This bill provides that a person under the age of 21 may not be issued a plenary retail distribution license or a plenary retail consumption license with broad package privileges that permits the sale of alcoholic beverages in original containers for consumption off the licensed premises. In addition, the bill provides that all members of a partnership that apply for a retail license are required to be domiciled in the State of New Jersey. The bill also prohibits the issuance or transfer of a retail distribution license or a plenary retail consumption license with broad package privileges unless the entity receiving the license is incorporated in this State, all officers and all members of the board of directors are citizens of the United States, and a majority of the officers and members of the board of directors are domiciled in this State.