SENATE BUDGET AND APPROPRIATIONS COMMITTEE

STATEMENT TO

SENATE, No. 2160

STATE OF NEW JERSEY

DATED:  DECEMBER 8, 2025

      The Senate Budget and Appropriations Committee reports favorably Senate Bill No. 2160.

      As reported, this bill allows a person who held a seasonal retail consumption license prior to the bill’s effective date to surrender the license to the issuing authority, which then may exchange the license for a plenary retail consumption license.  This license will permit the licensee to sell alcoholic beverages for consumption on the licensed premises throughout the entire year.

      Under the bill, a person who exchanges a seasonal retail consumption license would have the same privileges and be entitled to sell alcoholic beverages during the same times and days as other plenary retail consumption license holders in the same municipality. 

      The fee to convert a seasonal license would be based upon the average sales price of plenary retail consumption licenses in the municipality in which the licensed premises is located during the two years immediately preceding the bill’s effective date.  If a plenary retail consumption license has not been sold during the two years immediately preceding the bill’s effective date, the fee is to be based upon the average sales price of the last three plenary retail consumption licenses sold preceding the bill’s effective date.  If the licensed premises is located within the boundaries of two or more municipalities, the highest average sale price of the two or more municipalities would be used to calculate the fee.  The calculation to determine the fee would not include de minimis or related party transfer sales.  The fee to convert a seasonal license would not exceed $250,000.  A person who exchanges a license would also be required to pay the same annual fee as a plenary retail consumption license holder. 

      A seasonal retail consumption license allows for the sale of alcoholic beverages for on-site consumption for a limited time during the summer or winter season. A license issued during the summer season allows the licensee to serve alcoholic beverages from May 1 through November 14.  The holder of a winter seasonal license may sell alcoholic beverages from November 15 to April 30.

      A seasonal license is subject to the same population restrictions as a plenary retail consumption license, and is included in the total number of consumption licenses that a municipality may issue. A municipality may issue one of these licenses -both seasonal and plenary retail consumption- for each 3,000 persons residing in the municipality.  Therefore, the bill does not allow for the issuance of new licenses, but rather allows seasonal licensees to sell alcoholic beverages during the entire year. 

FISCAL IMPACT:

      The Office of Legislative Services (OLS) finds that the bill will result in indeterminate increases in annual State and municipal revenues and expenditures.  The OLS, however, cannot assess the direction of the net effect of the increases given the absence of information on workload increases for the Division of Alcoholic Beverage Control and municipalities as well as the potential revenue collected from the total number of converted licenses, application fees, sales tax on alcoholic beverages sold, and any penalty collections.

      The bill may increase municipal revenues from seasonal retail consumption licenses being converted to annual plenary retail consumption licenses for a one-time fee not to exceed $250,000.