Revises certain restrictions concerning hemp, intoxicating hemp beverages, and medical cannabis.

A5051 1R

[First Reprint]

ASSEMBLY, No. 5051

STATE OF NEW JERSEY

222nd LEGISLATURE

�

INTRODUCED MAY 7, 2026

Sponsored by:

Assemblyman� ROBERT J. KARABINCHAK

District 18 (Middlesex)

Assemblywoman� ANNETTE QUIJANO

District 20 (Union)

Senator� NICHOLAS P. SCUTARI

District 22 (Somerset and Union)

Co-Sponsored by:

Assemblyman Sampson

SYNOPSIS

���� Revises certain restrictions concerning hemp,
intoxicating hemp beverages, and medical cannabis.

CURRENT VERSION OF TEXT

���� As reported by the Assembly Oversight, Reform and
Federal Relations Committee on May 14, 2026, with amendments.

��

An Act

concerning hemp and medical cannabis regulation,
and amending various parts of statutory law.

����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:

���� 1. Section 8 of P.L.2025,
c.215 (C.2C:35-10f) is amended to read as follows:

���� 8. a. On or after April 13,
2026, or unless otherwise authorized by law, it shall be unlawful to sell,
offer for sale, or distribute any of the following:

���� (1) any viable seeds from a
Cannabis sativa L. plant that exceeds a total tetrahydrocannabinol
concentration, including tetrahydrocannabinolic acid, of 0.3 percent in the
plant on a dry weight basis;

���� (2) any intermediate
hemp-derived product containing:

���� (a) cannabinoids that are not
capable of being naturally produced by a Cannabis sativa L. plant;

���� (b)� cannabinoids that are
capable of being naturally produced by a Cannabis sativa L. plant, but were
synthesized or manufactured; or

���� (c)�� more than 0.3 percent
combined total of total tetrahydrocannabinol, including tetrahydrocannabinolic
acid, with any other cannabinoids that have similar effects or are marketed to
have similar effects on humans or animals as tetrahydrocannabinol, as determined
by the United States Secretary of Health and Human Services;

���� (3) any intermediate
hemp-derived cannabinoid product that is marketed or sold as a final product or
directly to an end consumer for personal or household use;

���� (4) any final hemp-derived
cannabinoid products containing:

���� (a)�� cannabinoids that are
not capable of being naturally produced by a Cannabis sativa L. plant;

���� (b)� cannabinoids that are
capable of being naturally produced by a Cannabis sativa L. plant, but were
synthesized or manufactured outside the plant;

���� (c) cannabinoids that are
capable of being naturally produced by a Cannabis sativa L. plant, but were
synthesized or manufactured outside the plant by any other prohibited synthesis
methodology, as identified by the Cannabis Regulatory Commission;

���� (d)� greater than 0.4
milligrams combined total per container of total tetrahydrocannabinol,
including tetrahydrocannabinolic acid, with any other cannabinoids that have
similar effects or are marketed to have similar effects on humans or animals as
tetrahydrocannabinol, as determined by the United States Secretary of Health
and Human Services; or

���� (5)� any cannabinoid product
marketed, labeled, or represented as hemp that exceeds the federally defined
THC level for hemp.

���� Notwithstanding the above,
until
[
May
31,
]

November
13,
2026, a hemp producer or its agent as authorized by the Department of
Agriculture to cultivate, handle, or process hemp or hemp-derived cannabinoid
products, pursuant to the �New Jersey Hemp Farming Act,� P.L.2019, c.238
(C.4:28-6 et al.), which are subject to the department�s statutory or
regulatory authority, established under that act, may possess or transport an
intermediate hemp-derived cannabinoid product with a THC concentration
exceeding 0.3 percent, provided that: (1) such material is undergoing
processing and at this stage of processing is not intended� to be used or
consumed by a human or animal; (2) the material is handled and transported in
accordance with any applicable regulations promulgated by the Cannabis
Regulatory Commission that establish standards for safety and security; and (3)
any final hemp-derived cannabinoid product processed therefrom and distributed
or sold does not exceed the allowable THC levels for hemp established by P.L.2025,
c.215.

���� b.��� It shall be unlawful to
sell, offer for sale, or distribute any intoxicating hemp beverage or any
hemp-derived cannabinoid product through online retail sale.

���� c.��� It shall be unlawful to
dispense, distribute, sell, or offer for sale any intoxicating hemp beverage
from a vending machine.� In addition to the penalties established pursuant to
this section and N.J.S.2C:35-5, a person who violates this subsection shall be
liable to a civil penalty of not less than $100 for each container of any such
beverage.� The penalty prescribed by this section shall be collected and
enforced by summary proceedings under the �Penalty Enforcement Law of 1999,�
P.L.1999, c.274 (C.2A:58-10 et seq.).

���� d. (1) The sale, offer for
sale, or distribution of any substance or product in violation of this section
shall be subject to the same criminal penalties established for marijuana
pursuant to N.J.S.2C:35-5.

���� (2) In addition to the
penalties established pursuant to N.J.S.2C:35-5, a person who sells, offers for
sale, or distributes any substance or product in violation of subsection a. of
this section shall be liable to a civil penalty of not less than $100 for the
first violation, not less than $1,000 for the second violation, and not less
than $10,000 for the third and each subsequent violation.� Each day during
which a violation continues shall constitute a separate and distinct offense.�
The penalty prescribed by this section shall be collected and enforced by
summary proceedings under the �Penalty Enforcement Law of 1999,� P.L.1999,
c.274 (C.2A:58-10 et seq.).� Nothing in this section shall be construed to
prohibit the imposition of multiple fines for a single violation as a penalty
for the sale or distribution of more than one substance or product in violation
of this section.

���� (3) The sale, offer for sale,
or distribution of any substance or product in violation of this section shall
be subject to the enforcement provisions and remedies set forth in section 9 of
P.L.2025, c.215 (C.2C:35-10i).

���� The imposition of any fine or
other remedy under P.L.2025, c.215 (C.2C:35-10f et al.) shall not preclude
prosecution for a violation of the criminal laws of this State.

(cf: P.L.2026, c.7, s.1)

���� 2. Section 12 of P.L.2025,
c.215 (C.2C:35-10g) is amended to read as follows:

���� 12. a. (1) Except as provided
in section 11 of P.L.2025, c.215 (C.24:6I-48.5), on or after April 13, 2026,
any person or entity that sells, offers for sale, or distributes an
intoxicating hemp beverage shall be subject to the penalties established pursuant
to section 8 of P.L.2025, c.215 (C.2C:35-10f).

���� (2) On or after November 13,
2026, the sale, offer for sale, or distribution of an intoxicating hemp
beverage by any person or entity shall be subject to the penalties established
in section 8 of P.L.2025, c.215 (C.2C:35-10f).

���� b.��� (1) On or after May 31,
2026, an intoxicating hemp beverage sold, offered for sale, or distributed in
accordance with section 11 of P.L.2025, c.215 (C.24:6I-48.5)
[
may not
contain more than 5 milligrams of total tetrahydrocannabinol per serving or not
more than 10 milligrams of total tetrahydrocannabinol per container
]

shall only
be in the following container forms:

����
(a) a can containing

1
[
not more
than five milligrams of total tetrahydrocannabinol per serving or
]
1

not
more than 10 milligrams of total tetrahydrocannabinol per can; or

����
(b) a resealable bottle of
750 milliliters in volume containing 40 servings of five milligrams of total
tetrahydrocannabinol per serving or not more than 200 milligrams of total
tetrahydrocannabinol per bottle
.

���� (2) A certificate of analysis
prepared by a laboratory that meets the requirements of paragraph (3) of this
subsection shall accompany the sale or distribution of any intoxicating hemp
beverage sold or distributed on or after May 31, 2026 and shall certify
[
that the
product contains no more than 5 milligrams of total tetrahydrocannabinol per
serving or no more than 10 milligrams of total tetrahydrocannabinol per
container
]

the amounts of total tetrahydrocannabinol per serving and total
tetrahydrocannabinol per container.� For the purposes of this paragraph, a
cannabinoid concentration that is within 90 to 110 percent of the specified
milligrams per serving and per container claimed for that product shall be
deemed to be compliant
.

���� (3) The certificate of
analysis required pursuant to paragraph (2) of this subsection shall be
prepared by an independent testing laboratory that complies with the testing
established by the commission, provided that such laboratory shall be
registered with the Drug Enforcement Administration in the United States
Department of Justice and ISO 17025 accredited for all analytes required by the
commission.

���� c.��� The sale of an
intoxicating hemp beverage without a certificate of analysis or
[
in excess of
the milligram limitations established in paragraph (2) of
]

not in
conformity with paragraph (1) of
subsection b. of this section shall be
liable for a civil penalty of not less than $100 for each container.� The
penalty prescribed by this section shall be collected and enforced by summary
proceedings under the �Penalty Enforcement Law of 1999,� P.L.1999, c.274
(C.2A:58-10 et seq.).

(cf: P.L.2026, c.7, s.2)

���� 3. Section 31 of P.L.2021,
c.16 (C.24:6I-45) is amended to read as follows:

���� 31.� Municipal Regulations or
Ordinances.�

���� a.��� A municipality may enact
ordinances or regulations, not in conflict with the provisions of P.L.2021,
c.16 (C.24:6I-31 et al.):

���� (1)� governing the number of
cannabis establishments, distributors, or delivery services, as well as the
location, manner, and times of operation of establishments and distributors,
but the time of operation of delivery services shall be subject only to regulation
by the commission; and

���� (2)� establishing civil
penalties for violation of an ordinance or regulation governing the number of
cannabis establishments, distributors, or delivery services that may operate in
such municipality, or their location, manner, or the times of operations.

���� b.��� A municipality may
prohibit the operation of any one or more classes of cannabis establishment, or
cannabis distributors or cannabis delivery services, but not the delivery of
cannabis items and related supplies by a delivery service, within the jurisdiction
of the municipality through the enactment of an ordinance, and this prohibiting
ordinance shall apply throughout the municipality, even if that municipality or
parts thereof fall within any district, area, or other geographical
jurisdiction for which land use planning, site planning, zoning requirements or
other development authority is exercised by an independent State authority,
commission, instrumentality, or agency pursuant to the enabling legislation
that governs its duties, functions, and powers, even if this development
authority is expressly stated or interpreted to be exclusive thereunder; the
local prohibiting ordinance applies, notwithstanding the provisions of any
independent State authority law to the contrary.� Only an ordinance to prohibit
one or more classes of cannabis establishment, or cannabis distributors or
cannabis delivery services enacted pursuant to the specific authority to do so
by this section shall be valid and enforceable; any ordinance enacted by a
municipality prior to the effective date of this section addressing the issue
of prohibiting one or more types of cannabis-related activities within the
jurisdiction of the municipality is null and void, and that entity may only
prohibit the operation of one or more classes of cannabis establishment, or
cannabis distributors or cannabis delivery services by enactment of a new
ordinance based upon the specific authority to do so by this section.� The
failure of a municipality to enact an ordinance prohibiting the operation of
one or more classes of cannabis establishment, or cannabis distributors or
cannabis delivery services within 180 days after the effective date of
P.L.2021, c.16 (C.24:6I-31 et al.), shall result in any class of cannabis
establishment, or a cannabis distributor or cannabis delivery service that is
not prohibited from operating within the municipality as being permitted to
operate therein as follows: the growing, cultivating, manufacturing, and
selling and reselling of� cannabis and cannabis items, and operations to
transport in bulk cannabis items by a cannabis cultivator, cannabis
manufacturer, cannabis wholesaler, or as a cannabis distributor or cannabis
delivery service shall be permitted uses in all industrial zones of the
municipality; and the selling of cannabis items to consumers from a retail
store by a cannabis retailer shall be a conditional use in all commercial zones
or retail zones, subject to meeting the conditions set forth in any applicable
zoning ordinance or receiving a variance from one or more of those conditions
in accordance with the �Municipal Land Use Law,� P.L.1975, c.291 (C.40:55D-1 et
seq.).� At the end of a five-year period following the initial failure of a
municipality to enact an ordinance prohibiting the operation of one or more classes
of cannabis establishment, or cannabis distributors or cannabis delivery
services, and every five-year period thereafter following a failure to enact a
prohibiting ordinance, the municipality shall again be permitted to prohibit
the future operation of any one or more classes of cannabis establishment, or
cannabis distributors or cannabis delivery services through the enactment of an
ordinance during a new 180-day period, but this ordinance shall be prospective
only and not apply to any cannabis establishment, distributor or delivery
service operating in the municipality prior to the enactment of the ordinance.

���� c. (1) When the commission
receives an application for initial licensing or renewal of an existing license
for any cannabis establishment, distributor, or delivery service pursuant to
section 19 of P.L.2021, c.16 (C.24:6I-36), or endorsement for a cannabis
consumption area pursuant to section 28 of P.L.2019, c.153 (C.24:6I-21), the
commission shall provide, within 14 days, a copy of the application to the
municipality in which the establishment, distributor, delivery service, or
consumption area is to be located, unless the municipality has prohibited the
operation of the particular class of business for which licensure is sought
pursuant to subsection b. of this section, or in the case of an application
seeking a consumption area endorsement, prohibited the operation of cannabis
retailers.� The municipality shall determine whether the application complies
with its local restrictions on the number of cannabis establishments,
distributors, or delivery services, or their location, manner, or times of
operation, and the municipality shall inform the commission whether the
application complies with its local restrictions.

���� (2)� A municipality may impose
a separate local licensing or endorsement requirement as a part of its
restrictions on the number of cannabis establishments, distributors, or
delivery services, or their location, manner, or times of operation.� A
municipality may decline to impose any local licensing or endorsement
requirements, but a local jurisdiction shall notify the commission that it
either approves or denies each application forwarded to it.

����
d. (1) Notwithstanding any
provision of law to the contrary, in the case of a medical cannabis dispensary
issued a permit pursuant to the �Jake Honig Compassionate Use Medical Cannabis
Act,� P.L.2009, c.307 (C.24:6I-1 et al), which is applying for approval or
renewal of a Class 5 Cannabis Retailer license pursuant to P.L.2021, c.16
(C.24:6I-31 et al.), and which is proposed to be co-located on the premises of
an existing medical cannabis dispensary in a municipality that permits the sale
of medical cannabis, irrespective of whether the municipality permits the
retail sale of adult-use cannabis items, the Commission shall not require
municipal review, consent, or approval as a condition of issuing a Class 5
Cannabis Retailer license for such location.� Any prior municipal approval
authorizing the medical cannabis dispensary to lawfully operate on the premises
shall be deemed to authorize the operation of a Class 5 Cannabis Retailer
license at such location.

����
(2) Notwithstanding any
municipal restrictions on the number of cannabis dispensaries or locations, a
municipality shall not prohibit the retail sale of cannabis items by any
medical cannabis dispensary issued a permit pursuant to the �Jake Honig
Compassionate Use Medical Cannabis Act,� P.L.2009, c.307 (C.24:6I-1 et al) that
has been open and lawfully operating in such municipality before July 1, 2023
without any violation, or notice thereof, for a period of not less than three
years prior to the enactment of P.L.��� , c.���� (C.������� ) (pending before
the Legislature as this bill).

(cf: P.L.2021, c.16, s.31)

���� 4. Section 11 of P.L.2025,
c.215 (C.24:6I-48.5) is amended to read as follows:

���� 11. a. (1) Notwithstanding the
provisions of section 8 of P.L.2025, c.215 (C.2C:35-10f), the holder of any
valid and unrevoked plenary wholesale license or plenary retail distribution
license, as such terms are defined in R.S.33:1-11 and R.S.33:1-12
, or the
holder of a valid and unrevoked plenary retail consumption license that meets
the requirements of R.S.33:1-12 and section 1 of P.L.1948, c.98 (C.33:1-12.23),

may sell intoxicating hemp beverages until November 13, 2026, after which date,
the holder shall be subject to the penalties and prohibitions established in
section 8 of P.L.2025, c.215 (C.2C:35-10f).

���� (2) Notwithstanding the
provisions of section 8 of P.L.2025, c.215 (C.2C:35-10f), a person or entity
that is licensed by the Cannabis Regulatory Commission in accordance with
P.L.2021, c.16 (C.24:6I-31 et al.) may sell intoxicating hemp beverages until November
13, 2026, after which date, the person or entity shall be subject to the
penalties and prohibitions established in section 8 of P.L.2025, c.215
(C.2C:35-10f).

���� b. (1) (a)
[
Any
intoxicating hemp beverage distributed, sold, or offered for sale in this State
pursuant to paragraph (1) of subsection a. of this section shall be stored or
displayed in a place that is not accessible to customers without the assistance
of an employee of the establishment.
]

Deleted by amendment, P.L.���� , c.����� (pending before the Legislature as
this bill)

���� (b)
[
Notwithstanding subparagraph (a)
of this paragraph, intoxicating
]

Intoxicating
hemp beverages sold, distributed, or offered for sale
pursuant to
[
subparagraph
]

paragraph

(1) of subsection a. of this section may be stored or displayed in a place
accessible to customers and may be accessed without the assistance of an
employee of the establishment only if:

���� (i) the establishment
segregates
the storage or display of intoxicating hemp beverages from other intoxicating
liquors, and
posts conspicuous notice at the place of storage or display
indicating to customers that the products are intoxicating hemp beverage
beverages and may only be purchased by a person 21 years of age or older;

���� (ii) the establishment
actively monitors the place of storage or display;

���� (iii) an employee of the
establishment confirms at the point of sale that the customer is 21 years of
age or older and understands that they are purchasing an intoxicating hemp
beverage
and is informed of the appropriate serving size of the intoxicating
hemp beverage being purchased
; and

���� (iv) the establishment
complies with any other requirements as may be established by rule by the
Division of Alcoholic Beverage Control, in consultation with the Cannabis
Regulatory Commission.

����
(2) Intoxicating hemp
beverages sold, distributed, or offered for sale pursuant to subsection a. of
this section shall conform to the requirements of subsection b. of section 12
of P.L.2025, c.215 (C.2C:35-10g).

���� c. (1) The provisions of Title
33 of the Revised Statutes and the rules and regulations promulgated thereunder
shall apply to the sale or distribution of intoxicating hemp beverages by any
person or entity licensed pursuant to the provisions of Title 33 of the Revised
Statutes;

���� (2) Nothing contained in
P.L.2025, c.215 (C.2C:35-10f et al.) shall be construed to preclude the
Division of Alcoholic Beverage Control from exercising the authority to enforce
the rules and regulations governing activities taken by licensees on licensed
premises or from taking disciplinary action against a licensee under Title 33
of the Revised Statutes based upon a determination by the division that the
licensee committed a violation of P.L.2025, c.215 (C.2C:35-10f et al.).

(cf: P.L.2025, c.215, s.11)

���� 5. R.S.33:1-12 is amended to
read as follows:

���� 33:1-12. Class C licenses
shall be subdivided and classified as follows:

���� Plenary retail consumption
license. 1. The holder of this license shall be entitled, subject to rules and
regulations, to sell any alcoholic beverages for consumption on the licensed
premises by the glass or other open receptacle, and also to sell any alcoholic
beverages in original containers for consumption off the licensed premises, but
this license shall not be issued to permit the sale of alcoholic beverages in
or upon any premises in which a grocery, delicatessen, drug store, or other
mercantile business is carried on, except as hereinafter provided.�
Subject
to section 1 of P.L.1948, c.98 (C.33:1-12.23), the holder of this license shall
be entitled to sell intoxicating hemp beverages until the expiration date set
forth in section 11 of P.L.2025, c.215 (C.24:6I-48.5), for consumption off the
licensed premises, but only in original containers.
� The holder of this
license shall be permitted to conduct consumer wine, beer, and spirits tasting
events and samplings for a fee or on a complimentary basis pursuant to
conditions established by rules and regulations of the Division of Alcoholic
Beverage Control, provided, however, that the holder of this license complies
with the terms and conditions set forth in section 3 of P.L.2009, c.216
(C.33:1-12d).� Subject to such rules and regulations established from time to
time by the director, the holder of this license shall be permitted to sell
alcoholic beverages in or upon the premises in which any of the following is
carried on: the keeping of a hotel or restaurant including the sale of
mercantile items incidental thereto as an accommodation to patrons; the sale,
at an entertainment facility as defined in R.S.33:1-1, having a seating
capacity for no less than 4,000 patrons, of mercantile items traditionally associated
with the type of event or program held at the site; the sale of distillers�,
brewers�, and vintners� packaged merchandise prepacked as a unit with other
suitable objects as gift items to be sold only as a unit; the sale of novelty
wearing apparel identified with the name of the establishment licensed under
the provisions of this section; the sale of cigars, cigarettes, packaged
crackers, chips, nuts, and similar snacks and ice at retail as an accommodation
to patrons or the retail sale of nonalcoholic beverages as accessory beverages
to alcoholic beverages; or, in commercial bowling establishments, the retail
sale or rental of bowling accessories and the retail sale from vending machines
of candy, ice cream, and nonalcoholic beverages.� The fee for this license
shall be fixed by the governing board or body of the municipality in which the
licensed premises are situated, by ordinance, at not less than $250 and not
more than $2,500.� No ordinance shall be enacted which shall raise or lower the
fee to be charged for this license by more than 20 percent from that charged in
the preceding license year or $500.00, whichever is the lesser.� The governing
board or body of each municipality may, by ordinance, enact that no plenary
retail consumption license shall be granted within its respective municipality.

���� The holder of this license
shall be permitted to obtain a restricted brewery license issued pursuant to
subsection 1c. of R.S.33:1-10 and to operate a restricted brewery immediately
adjoining the licensed premises in accordance with the restrictions set forth
in that subsection.� All fees related to the issuance of both licenses shall be
paid in accordance with statutory law.

���� Seasonal retail consumption
license. 2. (1) The holder of this license shall be entitled, subject to rules
and regulations, to sell any alcoholic beverages for consumption on the
licensed premises by the glass or other open receptacle and also to sell any
alcoholic beverages in original containers for consumption off the licensed
premises, during the summer season from May 1 until November 14, inclusive, or
during the winter season from November 15 until April 30, inclusive.

���� (2)� In addition, the director
shall issue to the holder of this license, upon request by the licensee,
one-day permits that shall entitle the license holder to sell alcoholic
beverages for consumption on the licensed premises during the season when the
license holder is not authorized to sell alcoholic beverages pursuant to
subparagraph (1) of this subsection.� The number of one-day permits issued to a
licensee pursuant to this subsection shall not exceed an aggregate of 14
permits in one calendar year.� A one-day permit issued pursuant to this
subsection shall be valid for 24 consecutive hours.� The fee for each one-day
permit shall be $500.

���� The governing body of the
municipality in which the licensed premises is situated may place reasonable
conditions upon a one-day permit for the purpose of maintaining public safety
on the licensed premises and immediately surrounding area.� The costs associated
with the reasonable conditions placed on the one-day permit shall be assumed by
the holder of this license.

���� (3)� This license shall not be
issued to permit the sale of alcoholic beverages in or upon any premises in
which a grocery, delicatessen, drug store, or other mercantile business is
carried on, except as hereinafter provided.� Subject to such rules and regulations
established from time to time by the director, the holder of this license shall
be permitted to sell alcoholic beverages in or upon the premises in which any
of the following is carried on: the keeping of a hotel or restaurant including
the sale of mercantile items incidental thereto as an accommodation to patrons;
the sale of distillers�, brewers�, and vintners� packaged merchandise prepacked
as a unit with other suitable objects as gift items to be sold only as a unit;
the sale of novelty wearing apparel identified with the name of the
establishment licensed under the provisions of this section; the sale of
cigars, cigarettes, packaged crackers, chips, nuts, and similar snacks and ice
at retail as an accommodation to patrons; or the retail sale of nonalcoholic
beverages as accessory beverages to alcoholic beverages.� The fee for this
license shall be fixed by the governing board or body of the municipality in
which the licensed premises are situated, by ordinance, at 75 percent of the
fee fixed by said board or body for plenary retail consumption licenses.� The
governing board or body of each municipality may, by ordinance, enact that no
seasonal retail consumption license shall be granted within its respective
municipality.

����� (4)
A person who held this license prior to the effective date of P.L.2025, c.295
and wishes to exchange the license for a plenary retail consumption license may
surrender the license to the issuing authority prior to the last day of the 24
th

month following the effective date of P.L.2025, c.295 and the issuing authority
shall convert the license to a plenary retail consumption license. �Thereafter,
the licensee may sell any alcoholic beverages during 12 months of each year in
accordance with the provisions of this section.� The governing board or body of
the municipality in which the licensed premises is situated shall affirmatively
approve the holder of this license converting it to a plenary retail
consumption license in accordance with this subsection, and exercising the same
privileges as the holder of a plenary retail consumption license.� A person who
converts this license shall be entitled to sell alcoholic beverages on the same
days and during the same hours as other plenary retail consumption license
holders within the same municipality.�

����� The
fee to convert this license shall be equal to 43 percent of the average sales
price of plenary retail consumption licenses in the municipality in which the
licensed premises is located during the two years immediately preceding the
effective date of P.L.2025, c.295.� If less than three plenary retail
consumption licenses have been sold in the municipality or municipalities
during the two years immediately preceding the effective date of P.L.2025,
c.295, the fee shall be equal to 43 percent of the average sales price of the
last three plenary retail consumption licenses sold prior to the effective date
of P.L.2025, c.295, except as otherwise provided in paragraph (b) of this
subsection.� If the licensed premises is located within the boundaries of two or
more municipalities, the highest average sale price of the two or more
municipalities shall be used to calculate the fee.� The calculation to
determine the fee shall not include de minimis or related party transfer sales
and shall be subject to the following requirements:

����� (a)
if the sales price of a plenary retail consumption license required to be used
in this section to determine the average sales price is not known or cannot be
determined because the license was sold co-mingled with other assets as part of
a bulk sale for a total sales price that did not identify the component prices
of the individual assets included in the sale, the fee shall be $350,000;

����� (b)
if less than three plenary retail consumption licenses have been sold in the
municipality or municipalities during the five years immediately preceding the
effective date of P.L.2025, c.295, the fee shall be $350,000; or

����� (c)
if a municipality has less than five plenary retail consumption licenses, the
fee shall be $350,000.

���� The
fee for converting this license shall be paid to the municipality in which the
licensed premises is located. If the licensed premises is located within the
boundaries of two or more municipalities, the fee shall be divided and paid in
equal proportions to the municipalities.� A person who exchanges this license
also shall pay the annual fee established by the issuing authority for holding
a plenary retail consumption license.

���� Plenary retail distribution
license. 3. a. The holder of this license shall be entitled, subject to rules
and regulations, to sell any alcoholic beverages, or intoxicating hemp
beverages until the expiration
[
of
]

date set
forth in
section 11 of P.L.2025, c.215 (C.24:6I-48.5), for consumption off
the licensed premises, but only in original containers except that licensees
shall be permitted to conduct consumer wine, beer, and spirits tasting events
and samplings on a complimentary basis pursuant to conditions established by
rules and regulations of the Division of Alcoholic Beverage Control, provided,
however, that the holder of this license complies with the terms and conditions
set forth in section 3 of P.L.2009, c.216 (C.33:1-12d).

���� The governing board or body of
each municipality may, by ordinance, enact that this license shall not be
issued to permit the sale of alcoholic beverages in or upon any premises in
which any other mercantile business is carried on, except that any such ordinance,
heretofore or hereafter adopted, shall not prohibit the retail sale of
distillers�, brewers�, and vintners� packaged merchandise prepacked as a unit
with other suitable objects as gift items to be sold only as a unit; the sale
of novelty wearing apparel identified with the name of the establishment
licensed under the provisions of this act; cigars, cigarettes, packaged
crackers, chips, nuts, and similar snacks, ice, and nonalcoholic beverages as
accessory beverages to alcoholic beverages.� The fee for this license shall be
fixed by the governing board or body of the municipality in which the licensed
premises are situated, by ordinance, at not less than $125 and not more than
$2,500.� No ordinance shall be enacted which shall raise or lower the fee to be
charged for this license by more than 20 percent from that charged in the
preceding license year or $500.00, whichever is the lesser.� The governing
board or body of each municipality may, by ordinance, enact that no plenary
retail distribution license shall be granted within its respective municipality.

���� Limited retail distribution
license. 3. b. The holder of this license shall be entitled, subject to rules
and regulations, to sell any unchilled, brewed, malt alcoholic beverages in
quantities of not less than 72 fluid ounces for consumption off the licensed
premises, but only in original containers, provided, however, that this license
shall be issued only for premises operated and conducted by the licensee as a
bona fide grocery store, meat market, meat and grocery store, delicatessen, or
other type of bona fide food store at which groceries or other foodstuffs are
sold at retail and provided further that this license shall not be issued
except for premises at which the sale of groceries or other foodstuffs is the
primary and principal business and at which the sale of alcoholic beverages is
merely incidental and subordinate thereto.� The fee for this license shall be
fixed by the governing body or board of the municipality in which the licensed
premises are situated, by ordinance, at not less than $31 and not more than
$63.� The governing board or body of each municipality may, by ordinance, enact
that no limited retail distribution license shall be granted within its
respective municipality.

���� Plenary retail transit
license. 4. The holder of this license shall be entitled, subject to rules and
regulations, to sell any alcoholic beverages, for consumption only, on railroad
trains, airplanes, limousines, and boats, while in transit.� The fee for this
license for use by a railroad or air transport company shall be $375, for use
by the owners of limousines shall be $31 per vehicle, and for use on a boat
shall be $63 on a boat 65 feet or less in length, $125 on a boat more than 65
feet in length but not more than 110 feet in length, and $375 on a boat more
than 110 feet in length; such boat lengths shall be determined in the manner
prescribed by the Bureau of Customs of the United States Government or any
federal agency successor thereto for boat measurement in connection with
issuance of marine documents.� A license issued under this provision to a
railroad or air transport company shall cover all railroad cars and planes
operated by any such company within the State of New Jersey.� A license for a
boat or limousine issued under this provision shall apply only to the
particular boat or limousine for which issued and shall permit the purchase of
alcoholic beverages for sale or service in a boat or limousine to be made from
any Class A and B licensee or from any Class C licensee whose license privilege
permits the sale of alcoholic beverages in original containers for off-premises
consumption.� An interest in a plenary retail transit license issued in
accordance with this section shall be excluded in determining the maximum
number of retail licenses permitted under P.L.1962, c.152 (C.33:1-12.31 et
seq.).

���� Club license. 5. The holder of
this license shall be entitled, subject to rules and regulations, to sell any
alcoholic beverages but only for immediate consumption on the licensed premises
and only to bona fide club members and their guests.� The fee for this license
shall be fixed by the governing board or body of the municipality in which the
licensed premises are situated, by ordinance, at not less than $63 and not more
than $188.� The governing board or body of each municipality may, by ordinance,
enact that no club licenses shall be granted within its respective
municipality.� Club licenses may be issued only to such corporations,
associations and organizations as are operated for benevolent, charitable,
fraternal, social, religious, recreational, athletic, or similar purposes, and
not for private gain, and which comply with all conditions which may be imposed
by the Director of the Division of Alcoholic Beverage Control by rules and
regulations.

���� The provisions of section 23
of P.L.2003, c.117 amendatory of this section shall apply to licenses issued or
transferred on or after July 1, 2003, and to license renewals commencing on or
after July 1, 2003.

���� Sporting facility license. 6.
The holder of this license shall be entitled, subject to rules and regulations,
to sell at retail or to serve any alcoholic beverages as the owner, operator,
lessee, or concessionaire of a sporting facility by the glass or other
receptacle or in original containers only on the premises of the sporting
facility.

���� Notwithstanding any other
provision of Title 33 of the Revised Statutes and subject to conditions
established by the director, the holder of this license may share direction and
control of the premises to be licensed and share proceeds and profits from the
sale of alcoholic beverages with the owner, operator, concessionaire, or lessee
of the facility.� The holder of this license shall be permitted to conduct
consumer wine, beer, and spirits tasting events and samplings for a fee or on a
complimentary basis provided, however, the license holder complies with the
provisions of section 3 of P.L.2009, c.216 (C.33:1-12d) and rules and
regulations promulgated thereto.� Notwithstanding any law, rule or regulation
to the contrary, the holder of this license shall be entitled to establish up
to five all-inclusive areas within the licensed sporting facility, provided the
total capacity of the all-inclusive area or areas within the sporting facility
for each game or event does not exceed more than 500 persons or five percent of
the total capacity of the sporting facility, whichever is greater.

���� The fee for this license shall
be $2,500 for venues with a capacity of less than 7,500 persons; $5,000 for
venues with a capacity of not less than 7,500 persons but not more than 14,999
persons; $7,500 for venues with a capacity of not less than 15,000 persons but
not more than 22,499 persons; and $10,000 for venues with a capacity of 22,500
persons or more.

���� The director may, in
accordance with regulations or a special ruling, issue special all-inclusive
area event permits to the holder of this license authorizing the establishment
of an all-inclusive area or areas in excess of these limitations for a national
or international sporting event at a sporting facility with a seating capacity
of 50,000 or more persons, provided the issuance of the special all-inclusive
area event permits is consistent with the provisions of Title 33 of the Revised
Statutes and any regulations promulgated thereunder.� The director may impose
special conditions on the special all-inclusive area event permits deemed
necessary and proper to protect the health, safety, and welfare of the public.�
A special all-inclusive area event permit issued pursuant to this subsection
shall be valid for the specified duration of the event and the fee shall be
$2,000 per day for each all-inclusive area established, but the total fee shall
not exceed $6,000 per day.� Prior to the issuance of a special all-inclusive
area event permit, the director may require the holder of this license to
provide a bond or equivalent to the Division of Alcoholic Beverage Control in
an amount to be determined by the director based on the size, scope, and
conditions of the national or international sporting event and the compliance
history of the sporting facility license holder.

���� For the purposes of this
subsection:

���� �National or international
sporting event� means a tournament-level professional event governed by a
national or international sports federation or governing body, including, but
not limited to, sporting events governed by the National Football League, International
Olympic Committee, and the International Federation of Association Football.

���� �Sporting facility� means a
stadium, arena, team training facility, or similar venue located on public
property where alcoholic beverages are served or sold at retail for consumption
on the premises by the glass or other open receptacle or in original containers.

���� �Team training facility� shall
include team offices and team headquarters.

(cf: P.L.2025, c.295, s.1)

���� 6. Section 1 of P.L.1948, c.98
(C.33:1-12.23) is amended to read as follows:

���� The holder of a plenary retail
consumption license or a seasonal retail consumption license, after the
effective date of this act, may sell and display for sale alcoholic beverages
in original containers for consumption off the licensed premises only in the
public barroom of the licensed premises, such barroom being a room containing a
public bar, counter or similar piece of equipment designed for and used to
facilitate the sale and dispensing of alcoholic beverages by the glass or other
open receptacle for consumption on the licensed premises; provided, however,
that where, prior to the effective� date of this act, alcoholic beverages in
original containers for off-premises consumption were sold and displayed for
sale by the holder of such license, either to the exclusion of sale for
consumption on the licensed premises or upon a portion of the licensed premises
other than the public barroom, such sale and display shall be permitted as
heretofore and notwithstanding renewal or transfer of the license either from
person to person or place to place, subject to rules and regulations to be
promulgated by the commissioner.�
The holder of a plenary retail consumption
license may, until the expiration date set forth in section 11 of P.L.2025,
c.215 (C.24:6I-48.5), sell and display for sale intoxicating hemp beverages in
original containers for consumption off the licensed premises only in the
public barroom of the licensed premises, provided that the public barroom is
not located in or upon a premises that also operates a hotel, restaurant,
entertainment facility, or commercial bowling establishment.

(cf: P.L.1948, c.98, s.1)

���� 7. This act shall take effect
immediately.