SENATE LAW AND PUBLIC SAFETY COMMITTEE

STATEMENT TO

SENATE, No. 817

with committee amendments

STATE OF NEW JERSEY

DATED: DECEMBER 11, 1997

      The Senate Law and Public Safety Committee reports without recommendation and with committee amendments Senate Bill No. 817.

      P.L.1993, c.372 established the restricted brewery license under New Jersey law, thereby making possible the establishment of brewpubs which both brew and dispense beer for consumption on the premises. As amended and released by the committee, this bill would expand the amount of beer that could be brewed by such a licensee from a maximum of 3,000 to 6,000 barrels a year. The bill would further permit a licensee to sell its beer to wholesalers both within and outside of the State.

      P.L.1993, c.372 permits the issuance of a restricted brewery license only to a licensee who also holds a retail plenary consumption license for a premises where food is served. Retail licensees were limited to a maximum of two restricted brewery licenses. As amended and released by the committee, this bill would increase the maximum permissible number of restricted brewery licenses a plenary retail consumption licensee may hold to four.

      The committee amendments:

∙    Increase brewpub production limits to 6,000; as introduced, the bill limited production to 8,000 barrels.

∙     Provide that restricted brewery licensees may sell and distribute their product to wholesalers; as introduced, the bill also permitted distribution to retailers.

∙    Increase the maximum number of restricted brewery licenses that an individual can hold to four; as introduced, the bill increased the maximum number to eight.

∙    Delete the provision that created a new type of brewery license, designated a "small brewery license."

∙    Require brewpubs to obtain a tax clearance certificate prior to the issuance, renewal or transfer of the restricted brewery license.

      The other committee amendments are technical in nature.

      As amended and released by the committee, this bill is identical to Assembly Bill No. 2151 as amended and released by the Assembly Law and Public Safety Committee on this same date.