S3159

An Act concerning the sale of alcoholic beverages and supplementing Title 33 of the Revised Statutes.

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

1. a. Any person who would qualify pursuant to R.S.33:1-25 to hold an alcoholic beverage retail license but who does not hold an interest in any such license may hold a solicitor’s permit and sell alcoholic beverages to any person licensed under R.S.33:1-12, notwithstanding any familial or employment relationship with a holder of a retail license, a stockholder or any other person having a beneficial interest in a retail license, or any person managing or participating in the operation of a retail license, except that:

(1) the holder of a solicitor’s permit shall not offer for sale or solicit any order for the purchase or sale of any alcoholic beverage or receive any commission or compensation, directly or indirectly, based on sales to any retail license holder in which an immediate family member or employer of the solicitor has any direct or indirect financial interest or participates in the operation thereof;

(2) any compensation paid to the holder of a solicitor’s permit who has a familial or employment relationship with a retail license holder, a stockholder or any other person having a beneficial interest in a retail license, or any person managing or participating in the operation of a retail license shall be within a range that is standard for a solicitor with similar work experience as determined by the director; and

(3) no solicitor or retail license holder shall enter into a reciprocal agreement with another solicitor or retail license holder to circumvent the prohibitions of this section.

b. The director shall issue a solicitor’s permit only to a person who performs the duties and responsibilities of a bona ride solicitor as defined in regulations promulgated by the director.

c. For the purposes of this subsection “immediate family member” means husband, wife, son, daughter, grandfather, grandmother, grandson, granddaughter, brother, sister, father, mother, aunt, uncle, niece, nephew, brother-in-law, sister-in-law, father-in-law, mother-in-law, son-in-law, and daughter-in-law.

2. This act shall take effect immediately.

STATEMENT

The Division of Alcoholic Beverage Control (ABC) regulations governing solicitor’s permits prohibit the issuance of a new solicitor’s permit to any person whose relative has a direct or
indirect financial interest in any retail alcoholic beverage license.

Under the provisions of this bill, any person who would qualify to hold an alcoholic beverage retail license, but who does not hold an interest in a retail license, may hold a solicitor’s permit and sell alcoholic beverages to any person with an alcoholic beverage retail license, except that:

(1) the holder of a solicitor’s permit is not permitted to offer for sale or solicit any order for the purchase or sale of any alcoholic beverage, or receive any commission or compensation, directly or indirectly, based on sales to any retail license holder in which an immediate family member or employer of the solicitor has any direct or indirect financial interest or participates in the operation thereof;

(2) any compensation paid to the holder of a solicitor’s permit who has a familial or employment relationship with a holder of a retail license, a stockholder or any other person having a beneficial interest in a retail license, or any person managing or participating in the operation of a retail license is to be within a range that is standard for a solicitor with similar work experience as determined by the director; and

(3) no solicitor or retail license holder is to enter into a reciprocal agreement with another solicitor or retail license holder to circumvent the prohibitions of this section.

The bill further provides that the director may issue a solicitor’s permit only to a person who performs the duties and responsibilities of a bona fide solicitor in accordance with ABC regulations. Under the regulations, these duties and responsibilities may include, but are not limited to, physically calling on accounts and covering routes, taking orders for the purchase of alcoholic beverages, preparing and presenting professional sales presentations to retailers, attending company and supplier sponsored meetings, utilizing information provided by the company to remain timely on the company brands and competitive brand pricing, assisting retailers with on-premise promotions and attending such events, maintaining and using tasting notes, and installing supplied point of sale material.