Removes plenary retail distribution license limit for certain stores.
The bill aims to modernize the alcohol distribution licensing framework in New Jersey, potentially leading to an increase in liquor store licenses in areas where such licenses are limited. By incrementally allowing for more licenses, S101 seeks to accommodate business growth and competition in the liquor retail market without increasing the total number of licenses that municipalities can issue. Importantly, local governments will still control the total number of licenses permitted within their respective jurisdictions, which ensures that the issue of alcohol accessibility is still managed at the local level.
Senate Bill 101 (S101) addresses the limitations on plenary retail distribution licenses in New Jersey. This bill proposes to allow individuals or entities to acquire up to ten retail distribution licenses over a period of ten years, with initial limits set at five and seven licenses after specific time intervals. The licenses can be used for the operation of both retail food stores and liquor stores, given certain sales conditions are met. Specifically, for a liquor store, at least 90 percent of its annual sales must come from alcohol sales, while for a retail food store, at least 65 percent of its sales must come from groceries and foodstuffs.
Opponents of the bill may express concerns regarding the potential for increased alcohol availability and its implications for community standards and public health. The gradual increase in licenses might lead to a saturation of liquor stores in certain regions, or a shift in community dynamics where alcohol consumption could become more normalized. There is also the issue of imposing a transfer fee of 10 percent on additional licenses acquired, which may burden smaller retailers or those with limited resources, potentially impacting their ability to compete in the market.