A 5295 — Makes various revisions to the laws governing alcoholic beverage licensing.

A5295 1R [First Reprint] ASSEMBLY, No.

PETERPAUL District 11 (Monmouth)    Co-Sponsored  by:   SYNOPSIS      Makes various revisions to the laws governing alcoholic beverage licensing.

Assemblywoman Drulis   CURRENT  VERSION  OF  TEXTSYNOPSIS      AsMakes introduced.various revisions to the laws governing alcoholic beverage licensing.

  CURRENT VERSION OF TEXT      As reported by the Assembly Budget Committee on June 28, 2026, with amendments.

     “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 limited1[limited brewery licensee,licensee] craft manufacturer’s licensee1, provided that the holder of a limited1[limited brewery licenselicense] 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.

     "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:

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.

     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:       33:1-10.33:1-10.  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.

 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.

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 are1[are substantially produced fromfrom] 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.

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.    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.        f.    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.

     g.   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.

     h.   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 issuing1[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 issuing1[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 host1[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.  A1A license transferred to a receiving municipality and issued to a qualified bidder that isacquires 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 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.  A receiving municipality shall not be entitled to acquire more than one license pursuant to thissubsection sectionc. in each calendar year.        f.  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.

    of g. 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 pursuantto 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 sectionchapter] 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 includedentitled into appeal the totalexpiration combinedof populationthe necessarylicense to issuethe director or a newcourt plenaryof retaillaw consumptionunless 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 seasonalother retailcasualty, consumptionand establishes by affidavit filed with the director that the license pursuantholder is making a good faith effort to sectionresume 2active use of P.L.1947,the c.94license (C.33:1-12.14). in  connection with the operation of a licensed premises.       7. e.  Section1Notwithstanding 1any ofprovision P.L.1977,contained c.246in (C.33:1-12.39)the isMunicipal amendedFinance Law to readthe contrary, a municipality may obtain a license as follows: 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.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.

     1[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.

On and after the effective date of P.L.2023, c.290 (C.33:1-10b et al.), a Class1[Class CC] 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.

or      (3) transferred from a sending municipality to a receiving municipality in accordance with section1[section 3 of P.L.2023, c.290 (C.33:1-24.3a).(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.

     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.

33:1 -12.14), a Class1[Class CC] plenary retail consumption1 license that is not in active use or transferred either within or without the municipality in accordance with subsection c.

     Any Class1[Class CC] 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.

     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 Class1[Class CC] 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 Class1[Class CC] 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 Class1[Class CC] 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:       6.6.  "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).

 "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).

(cf:  P.L.2024, c.31, s.3)         10.  This act shall take effect immediately.      STATEMENT        This bill makes various revisions to the law governing the manufacture and sale of alcoholic beverages in this State.

  Craft Alcoholic Beverage Manufacturers        Under current law, craft alcoholic beverage manufacturers are entitled to hold certain events and coordinate with food vendors to allow food to be consumed on the licensed premises.  A craft alcoholic beverage manufacturer is defined by current law as a limited brewery license, cidery and meadery license, and craft distillery license.  This bill defines the phrase “coordinate with food vendors” to mean 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 limited brewery licensee, provided that the holder of a limited brewery license does not own or operate the food truck, vendor, or restaurant and shall not share in the proceeds or profits from the sale of food.  The bill also clarifies that the holder of a craft manufacturer’s license may sell snacks and non-alcoholic beverages for consumption on and off the licensed premises.  In addition, the bill further clarifies that these craft manufacturer’s license holders may sell their products by the glass or open container for immediate consumption, sell or gratuitously provide samples for immediate consumption, and sell unchilled packaged goods or growlers and crowlers for off-premises consumption.       The bill also requires these license holders to obtain the endorsement of the municipal clerk or secretary of the municipal alcoholic beverage control board and the chief of police of the municipality when holding an event on private property.

  Farm Brewery Licenses        This bill expands the privileges of farm brewery license holders.  Specifically, the bill allows the holder of a farm brewery license to distribute the license holder’s products to alcoholic beverage wholesalers and retailers and to sell and distribute those products to persons outside of the state in accordance with the laws of that state.  The license holder would also be entitled to maintain a warehouse.

     The bill also allows the farm brewery license holder to coordinate with food vendors and sell and distribute the license holder’s products to alcoholic beverage retailers.    Renewal of Inactive Alcoholic Beverage Retail Licenses        Current law  establishes procedures for transferring inactive Class C licenses, which allow for the retail sales of alcoholic beverages.  Under current law, a license that remains inactive for two consecutive license terms is to expire.       This bill allows a governing body to extend this time period 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 of the Division of Alcoholic Beverage Control within thirty days after receipt of the notice of denial.    Transfer of Inactive Alcoholic Beverage Retail Licenses        Under current law, contiguous municipalities may transfer inactive plenary retail consumption licenses when the licenses is to be used within a redevelopment, improvement, or revitalization plan.  Current law allows municipalities that have reached the population limit placed on the issuance of plenary retail consumption license to issue a request for proposal to acquire an additional plenary retail consumption license from a contiguous municipality.

     This bill changes the process of transferring inactive plenary retail consumption licenses.  Under the bill, a municipality entitled to issue a new license would be able to offer that license at public sale to the highest bidding governing body of any other municipality in this State.  In addition, the bill allows the holder or contract purchaser of an inactive plenary retail consumption license issued by any municipality to apply to the governing bodies of an issuing municipality and a receiving municipality located within the same county or a contiguous municipality not located in the same county to use the license in connection with a premises located in the receiving municipality.  The license only would be used as part of an economic redevelopment plan or in connection with a premises located within a redevelopment, improvement, or revitalization area.    Shopping Malls        Current law authorizes special licenses to be issued to a person or other legal entity for use in connection with a food and beverage establishment located within a shopping mall.

The license authorizes the sale of alcoholic beverages for immediate consumption on the operator's premises.

     This bill amends the statutory definition of shopping mall to include office spaces with pad sites located on the same parcel or premises as the shopping mall.  In addition, the bill amends the shopping mall definition to being both under common ownership “or has ownership interests in common or shares ownership or control among multiple entities.”