SENATE LAW AND PUBLIC SAFETY COMMITTEE

STATEMENT TO

SENATE, No. 770

with committee amendments

STATE OF NEW JERSEY

DATED: JUNE 6, 1996

      The Senate Law and Public Safety Committee reports favorably Senate Bill No. 770 with committee amendments.

      Under R.S.33:1-31, the Director of the Division of Alcoholic Beverage Control (ABC) is authorized to accept from a licensee a monetary offer in compromise in an amount he deems proper in lieu of a license suspension by the director or other issuing authority. Current law (P.L.1992, c.188; C.33:1-4.1) provides that any such payments are to be deposited in a special nonlapsing fund to be used exclusively for the operation of the Alcoholic Beverage Control Enforcement Bureau and for the costs of enforcing the provisions of Title 33 (the "New Jersey Alcoholic Beverage Control Act").

      As amended and released by the committee, this bill provides that if a municipal issuing authority issued the license suspension, the Director of the ABC would be required to forward 20 percent of any such payment in lieu of suspension to that municipality to be used for law enforcement purposes.

       As introduced, the bill provided that a municipality could enact an ordinance providing for a surcharge to be assessed on a retail licensee in any case where a municipal issuing authority issued a license suspension and the director accepts an offer in lieu of suspension. The surcharge would have been 20 percent of any payment to the director in lieu of a license suspension.