New Jersey Senate Bill S1960

New Jersey 2022-2023 Regular Session

• Introduced: 3/3/22
• Refer: 3/3/22

Caption

Removes plenary retail distribution license limit for certain stores.

Impact

The modification in licensing laws is expected to have substantial implications for both the retail and alcoholic beverage industries within New Jersey. Proponents argue that by allowing greater accumulation of licenses, the bill enables grocery and liquor store operators to enhance their competitive edge, potentially leading to increased sales and diversified offerings. This is anticipated to generate additional state revenue through license fees and increased sales tax from alcohol sales. The bill specifies, however, that these changes do not authorize municipalities to issue more licenses beyond current local regulations.

Summary

Senate Bill S1960 aims to revise the existing limitations on the number of plenary retail distribution licenses that an individual or corporate entity may hold in New Jersey. Historically, individuals were restricted to a maximum of two such licenses; S1960 proposes to raise this limit progressively over a decade. The proposal permits individuals to initially obtain five licenses, with potential increases to seven licenses after five years and a maximum of ten licenses after ten years. This legislative change is particularly focused on those operating retail food stores, where the sale of alcoholic beverages constitutes a significant portion of their overall sales.

Contention

Opponents of S1960 express concerns that relaxing licensing limits may lead to monopolistic trends within the alcohol retail market, undermining local businesses and causing a concentration of license holdings in a few corporate entities. Additionally, there are worries regarding responsible alcohol sales practices, as larger entities may not adhere as stringently to community-oriented liquor selling practices, which can pose social challenges. This contentious issue raises questions around balancing business freedom with community welfare and responsible consumption.