SENATE COMMERCE COMMITTEE

 

STATEMENT TO

 

SENATE, No. 775

 

with committee amendments

 

STATE OF NEW JERSEY

 

DATED:  FEBRUARY 10, 2022

 

      The Senate Commerce Committee reports favorably and with committee amendments Senate Bill No. 775.

     As amended, this bill requires certain alcoholic beverage licensees to carry a policy of alcoholic beverage liability insurance, unless the person carries a commercial general liability policy that provides coverage for alcoholic beverage liability. The licensees captured under the bill are: (1) pursuant to R.S.33:1-10, the following Class A licenses: limited brewery license; restricted brewery license; plenary winery license; farm winery license; instructional winemaking facility license; cidery and meadery license; and craft distillery license; and (2) pursuant to R.S.33:1-12, the following Class C licenses: plenary retail consumption license; seasonal retail consumption license; plenary retail transit license; club license; sports facility license; and broad “C” license functioning in whole or in part as an on-premise consumption license.

      The purpose of the bill is not to modify existing insurance contract provisions governing liquor sales liability coverages or exclusions, but rather to require sellers to purchase appropriate coverage to protect themselves and their customers. 

      This bill was pre-filed for introduction in the 2022-2023 session pending technical review. As amended and reported, the bill includes the changes required by technical review, which has been performed.

 

COMMITTEE AMENDMENTS:

      The committee voted to amend the bill to clarify the types of licensees who will be required to carry a policy of alcoholic beverage liability insurance.