SENATE BUDGET AND APPROPRIATIONS COMMITTEE

STATEMENT TO

[First Reprint]

SENATE, No. 3970

STATE OF NEW JERSEY

DATED:  DECEMBER 8, 2025

      The Senate Budget and Appropriations Committee reports favorably Senate Bill No. 3970 (1R).

      As reported, this bill directs the New Jersey Economic Development Authority (authority), in conjunction with the Division of Travel and Tourism, to develop and implement a “Jersey Craft Beverage Retailer Promotion and Grant Program” (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.

      To accomplish the goals of the program, 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 IMPACT:

      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.

      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.