Senate Commerce Committee Statement to Senate, No. 1299 — State of New Jersey (May 13, 2024)

Summary

A Senate Commerce Committee statement to the Senate on Senate Bill No. 1299 with committee amendments, State of New Jersey, dated May 13, 2024, reporting the bill favorably. As amended, the bill requires certain alcoholic beverage licensees to carry alcoholic beverage liability insurance of not less than $500,000 of coverage, unless they carry a commercial general liability policy covering alcoholic beverage liability. The covered licensees include named Class A licenses such as limited brewery and craft distillery licenses, Class C retail consumption and club licenses, and other licenses or permits to sell or serve alcoholic beverages by the drink. Licensees must provide proof of the policy, and the amendments make failure to meet the requirements grounds for suspension or revocation of a license.

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SENATE COMMERCE COMMITTEE

STATEMENT TO

SENATE, No.
1299

with
committee amendments

STATE
OF NEW JERSEY

DATED: MAY 13,
2024

The Senate Commerce Committee reports favorably and
with committee amendments Senate Bill No. 1299.

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; 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.

The
failure to meet the requirements of the bill will be grounds for
suspension or revocation of the alcoholic beverage license.

This bill was pre-filed for introduction in the
2024-2025 session pending technical review. As reported, the bill includes the
changes required by technical review, which has been performed.

COMMITTEE AMENDMENTS :

The committee amended the bill to stipulate that the
failure to meet the requirements of the bill will be grounds for suspension or
revocation of a license.

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