S3364 SCS

An Act concerning alcoholic beverage licenses and certain retail stores.

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

1. a. For the purposes of this act:

“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 and constitute at least 65 percent of the store’s total annual sales in dollars.

“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.

b. The provisions of section 1 of P.L.1962, c.152 (C.33:1-12.31) shall not apply to the acquisition of any additional plenary retail distribution license or any interest therein when the license or licenses are used in connection with a retail food store that was an asset in bankruptcy pursuant to Chapter 7 of the federal Bankruptcy Code, 11 U.S.C. s.701 et seq. or Chapter 11 of the federal Bankruptcy Code, 11 U.S.C. s.1101 et seq. and is transferred for use in connection with another or the same retail food store.

c. The holder of a plenary retail distribution license acquired pursuant to this section shall be prohibited from transferring the license from the premises of the retail food store for which the license was used prior to the bankruptcy proceeding to another location, other than to another retail food store, except in connection with a relocation of the retail food store to a new location within the same municipality that issued the license.

d. A plenary retail distribution license that was in an inactive status pursuant to section 1 of P.L.1977, c.246 (C.33:1-12.39) at the time that the license was transferred as an asset in bankruptcy shall be transferred again within two years following the bankruptcy proceeding to a person or entity who does not hold a beneficial interest in the license.

The provisions of this subsection shall not apply to:

(1) a person who held a beneficial interest in less than two licenses at the time of acquiring the inactive license in the bankruptcy proceeding and is entitled to hold not more than two retail licenses pursuant to section 1 of P.L.1962, c.152 (C.33:1-12.31); or

(2) the holder of plenary retail distribution licenses used in connection with retail food stores who acquires any additional plenary retail distribution license or an interest therein when that license was used in connection with a retail food store that was an asset in bankruptcy pursuant to Chapter 7 of the federal Bankruptcy Code, 11 U.S.C. s.701 et seq., or Chapter 11 of the federal Bankruptcy Code, 11 U.S.C. s.1101 et seq., and when the interest in the retail food store is also acquired.

e. A person shall not be entitled to acquire any additional plenary retail distribution license or an interest therein pursuant to this section unless the person purchases or successfully bids in the bankruptcy sale on the assets associated with the retail food store where the license was previously sited.

2. a. The provisions of section 1 of P.L.1962, c.152 (C.33:1-12.31) shall not apply to the holder of any plenary retail distribution license or licenses who uses the holder’s license or licenses, subject to rules and regulations, in connection with the operation of a retail food store and who acquires any additional alcoholic beverage retail license or licenses in connection with the acquisition of any retail food store as an asset in bankruptcy.

The license holder shall be entitled to sell alcoholic beverages on separate contiguous licensed premises with a separate point of sale situated adjacent to the retail food store or in a separated area within the retail food store, subject to rules and regulations, in connection with the operation of a retail food store selling alcoholic beverages, and shall be prohibited from selling alcoholic beverages within the public retail floor area where merchandise including, but not limited to, groceries and other foodstuffs or any other mercantile products are sold at retail.

b. The provisions of section 1 of P.L.1962, c.152 (C.33:1-12.31) shall not apply to the holder of any plenary retail distribution license or licenses who used the holder’s license or licenses in connection with the operation of one or more retail food stores prior to January 1, 2018 and who acquires or acquired any additional plenary retail distribution license in connection with the acquisition of any retail food store as an asset in bankruptcy.

A license holder authorized to acquire an additional license or licenses in accordance with this subsection shall be exempt from the restrictions established in subsection a. of this section and shall be entitled to offer alcoholic beverages for sale at such retail food store so acquired in the same public retail store floor area as merchandise including, but not limited to, groceries and other food stuffs on the same licensed premises, except in connection with a relocation of an existing retail food store to a new location in the same licensing municipality that will employ all of the existing prevailing wage
positions at the new location of the retail food store. The exemption established pursuant to this subsection shall not be transferred to any other location unless the operation of such retail food store, along with the plenary retail consumption license, is so transferred.

3. This act shall take effect immediately, be retroactive to the first day of the 85th month prior to the date of enactment, and expire 90 days next following the date of enactment.