Category: Liquor Licensing

Issues for NJ and NY Retailers and Food and Beverage Establishments to Consider Upon Reopening for Outdoor Sales and Service

Issues for NJ and NY Retailers and Food and Beverage Establishments to Consider Upon Reopening for Outdoor Sales and Service

On June 3, 2020, New Jersey Governor Phil Murphy signed Executive Order No. 150 (the “Order”), which permitted, effective June 15, 2020, restaurants and other food and beverage establishments to offer on-site outdoor service. The Order also allowed municipalities to make outdoor shared spaces, such as sidewalks and streets, available to these establishments. Previously, these establishments had been limited to offering take-out services as a result of executive orders issued in response to the ongoing COVID-19 health emergency. Simultaneous with the issuance of the Order, the New Jersey Division of Alcoholic Beverage Control (NJABC) issued a special ruling to create a COVID-19 Expansion of Premises Permit (the “Special Ruling”). We discussed the special ruling here. Similarly, the State of New York – on a region-by-region basis – is entering Phase 2 of its reopening plan in response to the COVID-19 health emergency, and the New York State Liquor Authority (NYSLA) issued guidance to permit liquor licensees with on-premises service to resume outdoor, on-premises service of alcoholic beverages and food. We discussed the guidance here. In sum, both states have taken significant steps to provide relief to business establishments that have been hurt by the COVID-19 health emergency. These measures allow...

New York State Liquor Authority Issues Guidance on Outdoor Expansion of Licensed Premises for Phase 2 Reopening

New York State Liquor Authority Issues Guidance on Outdoor Expansion of Licensed Premises for Phase 2 Reopening

On June 4, 2020, the New York State Liquor Authority (SLA) issued guidance to licensees in regions of the state of New York that have entered Phase 2 of the state’s reopening plan in response to the COVID-19 health emergency (“SLA Guidance”). The SLA Guidance applies to licensees that possess on-premises service privileges under New York’s Alcoholic Beverage Control Law (“ABC Law”), and it permits these licensees to resume outdoor, on-premises service of alcoholic beverages and food. The SLA Guidance, summarized below, shall remain in effect until July 6, 2020 and may be extended or reduced depending on the circumstances. It specifically provides guidance on how outdoor consumption shall be implemented and how licensees may expand the licensed premises into outdoor spaces, and it also includes a question and answer (Q&A) section that provides guidance to municipalities seeking to extend licensed premises. Outdoor Consumption The consumption of food and alcoholic beverages must occur in outdoor, open-air areas without fixed roofs, and patrons are required to be seated at tables, bars, counters, or similar contrivances. The Q&A section provides that a fixed roof is any overhead structure covering an outdoor seating area that would not reasonably be viewed as temporary. Awnings...

NJABC Issues Special Ruling Creating COVID-19 Expansion Permit and Provides Guidance on To-Go Cocktails

NJABC Issues Special Ruling Creating COVID-19 Expansion Permit and Provides Guidance on To-Go Cocktails

Earlier this month, the New Jersey Division of Alcoholic Beverage Control (“Division”) issued a special ruling to create temporary COVID-19 permits to expand licensed premises and an advisory notice regarding cocktails-to-go. These are summarized briefly below. Special Ruling Establishing Temporary COVID-19 Permit to Expand Licensed Premises This special ruling issued on June 3, 2020 establishes a COVID-19 Expansion of Premises Permit (“COVID-19 Expansion Permit”) to coincide with Executive Order No. 150, which allows licensees or permittees with on-premises retail consumption privileges to reopen and serve patrons in outdoor areas. The COVID-19 Expansion Permit allows the licensees and permittees to expand their licensed premises into outdoor areas, either contiguous or non-contiguous to their permanently licensed premises. All licensees and permittees with on-premises retail consumption privileges may apply for this permit, but no permit issued would be effective before June 15, 2020. The special ruling sets forth certain criteria that must be met for issuance of the COVID-19 Expansion Permit. In all cases, the licensee is required to demonstrate that it has a possessory interest and control over the expansion areas, and that it will exercise only the same privileges afforded to it on its existing licensed premises. For example, licensees that...

NJABC Issues Order Extending 2019-2020 License Term

NJABC Issues Order Extending 2019-2020 License Term

The Division of Alcoholic Beverage Control (the “Division”) issued an order on April 13, 2020, extending the 2019-2020 license term for all municipally-issued and state-issued licenses until September 30, 2020. Under the Alcoholic Beverage Control Act (the “Act”), local governing bodies (known as local issuing authorities) have the authority to issue and renew retail licenses. These retail licenses are in effect for a one-year term, beginning on July 1 of each year. In certain instances, the licenses can also be extended by the Division through ad interim permits. The licenses for the 2019-2020 term were set to expire on June 30, 2020. The Division, rather than local issuing authorities, issues and renews wholesale and manufacturing licenses and associated permits, known as State-issued licenses, which have the same license term as retail licenses. These State-issued licenses include, but are not limited to, Plenary, Limited, and Restricted Brewery Licenses and Plenary, Limited, and Craft Distillery Licenses. Some associated State-issued permits include, but are not limited to, Special Concessionaire Permits, Sampling Permits, Consumer Tasting Permits, and Off-Premise Storage of Records Permits. These State-issued licenses and permits were similarly set to expire on June 30, 2020. Due to the COVID-19 crisis and its associated...

NJABC Relaxes Additional Regulations in Response to COVID-19 Crisis

NJABC Relaxes Additional Regulations in Response to COVID-19 Crisis

On April 7, 2020, we published a blog explaining the guidance and forms of relief recently provided by the New Jersey Division of Alcoholic Beverage Control (“Division”) to liquor license holders throughout the state. The issued guidance and relief pertain to operations of alcoholic beverage licensees and permittees during the state of emergency declared to address the COVID-19 crisis. Since that time, the Division has issued three new special rulings to address additional COVID-19 related issues. Each special ruling is summarized briefly below. Special Ruling Granting Relaxation of Signature Requirement, Product Returns, Credit, Notices of Obligation, and Bill and Hold This special ruling grants relaxation of several regulations promulgated under the Alcoholic Beverage Control Act (the “Act”), as well as under a previous special ruling. Signature on Invoices: To comply with social distancing protocols, the Division temporarily suspended the requirement that a licensee must sign and date a delivery slip, invoice, manifest, waybill, or similar document at the time of delivery of any alcoholic beverage by a licensed manufacturer, importer, or wholesaler. It sets forth acceptable alternative methods for signature, which includes methods like sending a contemporaneous email confirming receipt, photographing the invoice and confirming electronically with the wholesaler, or...

NJABC Issues Guidance and Provides Relief to Certain Licensees and Permit Holders During COVID-19 Crisis

NJABC Issues Guidance and Provides Relief to Certain Licensees and Permit Holders During COVID-19 Crisis

The COVID-19 pandemic has presented unforeseen challenges to countless businesses across the country. Businesses that serve alcoholic beverages for on-premises consumption have been hit particularly hard. Through Executive Order No. 107 (the “Order”), and in connection with the declared State of Emergency, New Jersey Governor Phil Murphy imposed certain restrictions on restaurants and bars. On March 30, 2020, the State of New Jersey Division of Alcoholic Beverage Control (“Division”) issued Advisory Notice 2020-03, which outlines the Division’s interpretation of the Order and provides guidance to licensees concerning the activities in which they may engage in during the COVID-19 crisis. All license holders in the state should review the advisory notice in full, in addition to some of the major points outlined below. Following those points is an explanation of the special ruling regarding Limited Brewery License holders that was issued by the Division concurrently with the advisory notice, and a summary of some recent changes in protocol for interactions with the Division and its staff. Lastly, there is a brief summary of the April 1, 2020 order issued by the Division authorizing the extension of certain alcoholic beverage permits. Advisory Notice 2020-03 Retail consumption licensees: Bars, restaurants, or other establishments...

Gibbons to Exhibit at Upcoming ICSC PA/NJ/DE Conference & Deal Making

Gibbons to Exhibit at Upcoming ICSC PA/NJ/DE Conference & Deal Making

The Gibbons Real Property Department will once again exhibit at the International Council of Shopping Centers (ICSC) PA/NJ/DE Conference & Deal Making at the Pennsylvania Convention Center on September 12. Stop by our booth, #319, and meet with some of the Department’s attorneys who will be attending. Deal Making hours are Thursday, September 12, from 8:30 am to 4:00 pm. The Conference provides an opportunity for real estate professionals (shopping center owners, developers, managers, marketing specialists, investors, lenders, retailers, etc.) to network and focus on getting deals done. We look forward to seeing you there!

NJABC Suspends New Limited Brewery Rules

NJABC Suspends New Limited Brewery Rules

Less than two weeks after issuing it, the New Jersey Division of Alcoholic Beverage Control (NJABC) has suspended its Special Ruling that imposed new regulations on Limited Brewery Licensees. The Special Ruling released in late September included restrictions on, among other things, special events and entertainment at Limited Breweries. In its announcement, the NJABC stated that the suspension of the restrictions will provide the opportunity to engage in further conversations with craft breweries and other alcoholic beverage license holders about the impact of the Special Ruling. The NJABC is also poised to work with state legislators to determine whether new legislation is needed to update the law that prompted the Special Ruling.

NJABC Issues New Grand Opening Permit, Limited Brewery Rules

NJABC Issues New Grand Opening Permit, Limited Brewery Rules

The New Jersey Division of Alcoholic Beverage Control (NJABC) has recently issued two notices to the regulated community – the first notice impacting all consumption licensees hosting a Grand Opening event (known as a “soft opening”) and the second impacting the operation of a Limited Brewery. Due to the highly regulated nature of alcoholic beverages and the recent announcement of these rules, licensees should be diligent in their compliance. The Grand Opening Permit authorizes an on-premise consumption licensee to sponsor a one-time private event on the licensed premises at its initial opening. With this permit, the NJABC recognizes that a new licensee may want to introduce itself to certain members of the community through a private event before its opening to the general public. The licensee must maintain a list of all individuals invited and when the invitation was accepted (no same-day invitations or “walk-up” invitees), and the list must be provided to the NJABC within ten days after the event. The licensee can offer an open bar at the event for no more than three hours (unless the permit authorizes differently), and the entire licensed premises must be closed to the public with clear and conspicuous signage that the premises...

Retail Liquor License Renewals Now Due 0

Retail Liquor License Renewals Now Due

All New Jersey retail liquor licenses for the 2015-2016 license term expire on June 30, 2016. All New Jersey retail liquor licensees should have received notification in April through the Division of Alcoholic Beverage Control’s (ABC’s) web-based system, POSSE ABC, to renew their liquor licenses utilizing the ABC’s online portal. Subject to the specific renewal deadline fixed by each municipality, all state and municipal retail liquor license renewal fees for the 2016-2017 license term are currently due. Prior to renewal, all retail liquor licensees must also receive an Alcoholic Beverage Retail License Clearance Certificate for renewal from the Division of Taxation.