STATE OF NEW JERSEY
221st LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2024 SESSION
Sponsored by:
Senator NELLIE POU
District 35 (Bergen and Passaic)
Senator JOSEPH P. CRYAN
District 20 (Union)
Co-Sponsored by:
Senator Bramnick
SYNOPSIS
Requires person with an alcoholic beverage license to carry alcoholic beverage liability insurance under certain circumstances.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel.
An Act concerning alcoholic beverage liability insurance 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. Notwithstanding the provisions of any law, rule, or regulation to the contrary, every person holding, pursuant to Title 33 of the Revised Statutes, the following licenses shall carry a policy of alcoholic beverage liability insurance, in an amount not less than $500,000, unless the person carries a commercial general liability policy that provides coverage for alcoholic beverage liability:
(1) pursuant to R.S.33:1-10, the following Class A licenses:
(a) limited brewery license;
(b) restricted brewery license;
(c) plenary winery license;
(d) farm winery license
(e) cidery and meadery license; and
(f) craft distillery license;
(2) pursuant to R.S.33:1-12, the following Class C licenses:
(a) plenary retail consumption license;
(b) seasonal retail consumption license;
(c) plenary retail consumption license with broad package privilege;
(d) plenary retail transit license;
(e) club license; and
(f) sports facility license; and
(3) Any other license or permit issued by the Director of the Division of Alcoholic Beverage Control or the Division of Gaming Enforcement, or which is created by the Legislature subsequent to the effective date of P.L. c. (C. ) (pending before the Legislature as this bill), that permits the holder of the license or permit to sell or serve alcoholic beverages by the drink to the public including, but not limited to:
(a) special contingency permits;
(b) casino hotel alcoholic beverage licenses;
(c) concessionaire permits;
(d) special permit for a golf facility; and
(e) temporary permits pending the issuance of a license or other permit.
b. Within 60 days of the effective date of P.L. c. (C. ) (pending before the Legislature as this bill), every person subject to the provisions of P.L. c. (C. ) (pending before the Legislature as this bill) shall provide to the Division of Alcoholic Beverage Control proof of the alcoholic beverage liability insurance required pursuant to subsection a. of this section. Thereafter, proof of the alcoholic beverage liability insurance required pursuant to subsection a. of this section shall be required as a condition of annual license renewal and shall be provided to the issuing municipality or other agency prior to the renewal.
2. This act shall take effect on the 90th day next following the date of enactment.
STATEMENT
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; cidery and meadery license; and craft distillery license; (2) pursuant to R.S.33:1-12, the following Class C licenses: plenary retail consumption license; seasonal retail consumption license; plenary retail consumption license with broad package privilege; 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; and (3) any other license or permit issued by the Director of the Division of Alcoholic Beverage Control or the Division of Gaming Enforcement, or which is created by the Legislature subsequent to the enactment of the bill that permits the holder of the license or permit to sell or serve alcoholic beverages by the drink to the public, including certain specific licenses. The bill requires that persons subject to the provisions of the bill provide proof of the alcoholic beverage liability insurance policy.
This bill provides that the alcoholic beverage liability insurance policy required pursuant to the bill is to be in an amount of not less than $500,000 of coverage.
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.