LEGISLATIVE FISCAL ESTIMATE
[First Reprint]
SENATE, No. 3970
STATE OF NEW JERSEY
221st LEGISLATURE
DATED: AUGUST 25, 2025
SUMMARY
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Synopsis: |
Establishes “Jersey Craft Beverage Retailer Promotion and Grant Program” in EDA. |
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Type of Impact: |
Annual increase in State expenditures; potential increase in annual State revenues. |
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Agencies Affected: |
New Jersey Economic Development Authority; Department of State. |
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Office of Legislative Services Estimate |
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Fiscal Impact |
Annual |
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State Expenditure Increase |
Indeterminate |
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Potential State Revenue Increase |
Indeterminate |
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· The Office of Legislative Services (OLS) finds that the bill may result in an indeterminate annual increase in State expenditures attributable to the creation of the Jersey Craft Beverage Retailer Promotion and Grant Program. The bill provides the New Jersey Economic Development Authority with considerable discretion to determine the scope and parameters of the grant program; however, a grant is not to exceed $2,500 per grantee annually.
· The OLS finds that the authority will likely incur costs to administer the grant program. Program management and design staff that may be needed to administer the grant program will likely have an annual salary and fringe benefit costs in the range of $75,000 to $150,000 per year.
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This grant program provides grant monies for advertising and
marketing materials, which would aid small businesses in the State to reach
their target audience, resulting in increased sales revenue. Therefore, these
grants may generate faster growth for these businesses than would have been
realized without the grant. When this occurs, the incremental State tax
revenues may be indirectly attributed to the grant program.
BILL DESCRIPTION
This bill directs the Economic Development Authority, in conjunction with the Division of Travel and Tourism in the Department of State, to develop and implement the Jersey Craft Beverage Retailer Promotion and Grant Program to encourage, advertise, and promote the craft alcohol beverages manufactured in the State and those New Jersey retailers who promote and sell New Jersey craft alcohol beverages in the State.
The bill establishes a Certified Jersey Craft Alcohol Beverage Retailer signage program for eligible alcohol beverage license holders to promote certain products. The bill also creates an associated grant program to facilitate capital improvements or the purchase of goods and services. Grants are to be issued from the New Jersey Certified Jersey Craft Alcohol Beverage Retailer Fund established in the bill.
The fund is to be credited with 50 percent of the receipts from the per gallon tax imposed on sales of beer, cider, mead, and liquors sold by holders of a limited brewery license, restricted brewery license, farm brewery license, cidery and meadery license, or craft distillery license. The bill also requires the authority to establish guidelines for eligible license holders, application timelines, acceptable uses for grants, and associated reporting requirements.
FISCAL ANALYSIS
EXECUTIVE BRANCH
None received.
OFFICE OF LEGISLATIVE SERVICES
The OLS finds that the bill may result in an indeterminate annual increase in State expenditures attributable to the creation of the grant program.
The bill provides the authority with considerable discretion to determine the scope and parameters of the grant program, however, under the bill, a grant is not to exceed $2,500 per grantee annually. In addition to the costs of the grants provided under the bill, there will also likely be costs incurred by the authority to administer the grant program. Notable program administration costs could include staff to develop program documentation such as applications, reporting documents, and marketing materials; staff time to review applications and verify grantee reporting documents; and staff time and materials to distribute marketing materials for the program. The grant program will likely require the authority to hire one or more staff for the duration of the program. Program management and design staff of this type will likely have an annual salary and fringe benefit cost in the range of $75,000 to $150,000 per year. Additional costs may include marketing materials, which may include flyers, brochures, or the distribution of paper or digital advertising targeted at potential grant applicants.
Grants under the program are to be issued from the fund created by the bill. The fund will be supported by annual appropriations of no less than 50 percent of the revenues derived from the Alcoholic Beverage Excise Tax and any other monies made available from the General Fund or any non-State public or private sources.
This grant program is designed to encourage, advertise, and promote the craft alcohol beverages manufactured in the State and those New Jersey retailers who promote and sell New Jersey craft alcohol beverages in the State. If these businesses realize that potential and remain within the State, the businesses can drive economic growth and generate jobs as well as additional annual State sales, income, and business tax revenues. This program provides grant monies for advertising and marketing materials, which would aid the ability of these businesses to reach their target audience and result in increased sales revenue. Therefore, these grants may generate faster growth than would have been realized absent the grant. When these situations occur, the incremental State tax revenues may be indirectly attributed to the grant program. The OLS cannot predict the amount and timing of when such indirect revenue will be generated.
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Section: |
Authorities, Utilities, Transportation and Communications |
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Analyst: |
Associate Fiscal Analyst |
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Approved: |
Thomas Koenig Legislative Budget and Finance Officer |
This legislative fiscal estimate has been produced by the Office of Legislative Services due to the failure of the Executive Branch to respond to our request for a fiscal note.
This fiscal estimate has been prepared pursuant to P.L.1980, c.67 (C.52:13B-6 et seq.).