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A5225 2R FISCAL ESTIMATE
LEGISLATIVE FISCAL ESTIMATE
[Second Reprint]
ASSEMBLY, No. 5225
STATE OF NEW JERSEY
222nd LEGISLATURE
DATED: JULY 6, 2026
SUMMARY
Synopsis:
Makes permanent temporary enactment allowing certain sale
and delivery of alcoholic beverages and clarifies privileges.
Type of Impact:
Annual State and local expenditure and revenue increases.
Agencies Affected:
Department of Law and Public Safety; Department of the Treasury;
municipalities.
Office of
Legislative Services Estimate
Annual Fiscal Impact
State and Local Expenditure Increase
Indeterminate
State and Local Revenue Increase
Indeterminate
�
The Office of Legislative Services (OLS) finds that the bill
codifies the COVID-19 pandemic �cocktails-to-go� temporary enactment for
certain licensees of the Division of Alcoholic Beverage Control in the
Department of Law and Public Safety, which may result in increased State revenues
from taxes on additional alcoholic products sold. Penalty revenues for
violations of the bill�s provisions may also accrue to the State and local
governments.
�
Further, the OLS estimates potential increased expenditures for
the State and local governments from the implementation of the bill�s
provisions and from enforcement efforts. It is unknown if there will be
additional revenues from penalty collections which would be offset by
expenditures for increased regulation and enforcement and additional costs for
the division and municipalities� increased workload.
BILL DESCRIPTION
����� This bill makes permanent provisions of P.L.2020,
c.33, which temporarily granted retail licensees and craft distillery licensees
certain privileges in response to the COVID-19 pandemic.
����� Specifically, the bill allows the holders of plenary
retail consumption licenses, hotel or motel licenses, or seasonal retail
consumption licenses, generally issued to bars and restaurants, to sell
alcoholic beverages in original containers or in closed and sealed containers,
and mixed cocktails in closed and sealed containers for consumption off the
licensed premises. These licensees also would be entitled to deliver, by the
licensee or a licensed third party delivery service, directly to the residence
of a consumer within this State who is 21 years of age or older for consumption
off the licensed or permitted premises any distilled alcoholic beverages mixed
or blended with other alcoholic or nonalcoholic beverages in closed and sealed
containers or malted beverages. However, the bill specifies that no alcoholic
beverages are to be delivered in original containers except for malt alcoholic
beverages.
����� In addition, the bill allows craft distillery
licensees to sell for consumption, on or off the licensed premises, distilled
alcoholic beverages manufactured on the licensed premises and mixed or blended
with other alcoholic or nonalcoholic beverages and sold in closed and sealed
containers or malted beverages. The bill also allows craft distilleries to sell
distilled alcoholic beverages in original containers accompanied by one or more
nonalcoholic beverages or foodstuffs that the consumer may combine to prepare a
mixed drink.
FISCAL ANALYSIS
EXECUTIVE BRANCH
����� None received.
OFFICE OF LEGISLATIVE SERVICES
����� The OLS finds that the bill codifies the COVID-19
pandemic �cocktails-to-go� temporary enactment for certain licensees of the
Division of Alcoholic Beverage Control in the Department of Law and Public
Safety, which may result in increased State revenues from the taxes on
alcoholic products sold. Further, the OLS estimates potential increased
expenditures from the implementation of the bill�s provisions and from State
and local enforcement. It is unknown if there will be additional revenues from
penalty collections which would be offset by expenditures for increased
regulation and enforcement and additional costs for the division and
municipalities� increased workload.
�����
State Expenditure Impacts
: The
bill may increase the division�s workload depending on whether increased
oversight is required for this continuation of the expanded privilege.
Depending on the board�s resource allocation policies, the added workload may
or may not augment State administrative expenditures. The OLS anticipates that
any increased sales of alcoholic beverages may also affect the workload of the
Division of Taxation in the Department of the Treasury.
�����
Municipal Expenditure Impacts
:
The bill may increase costs to municipalities associated with the
administration, regulation, and enforcement of the temporary enactment. The OLS
notes that these municipalities may employ additional law enforcement due to
the increased cost of public safety, as there may be an increased need for
enforcement of alcoholic beverage statutes and ordinances.
�����
State and Municipal Revenue Impacts
:
This bill codifies the 2020 �cocktails-to-go� temporary enactment for certain
licenses regulated by the Division of Alcoholic Beverage Control in the
Department of Law and Public Safety. The OLS anticipates that alcoholic
beverage sales may increase by codifying the temporary enactment as additional
licensees may sell alcohol related products, thus increasing the amount of
State taxes collected on the sale of alcoholic beverages.� Penalty revenues for
violations of the bill�s provisions may also accrue to the State and local
governments.
Section:
Law and Public Safety
Analyst:
Kristin Brunner Santos
Lead Fiscal Analyst
Approved:
Thomas Koenig
Legislative Budget and Finance Officer
This legislative fiscal estimate has been produced by the
Office of Legislative Services due to the failure of the Executive Branch to
respond to our request for a fiscal note.
This fiscal estimate has been prepared pursuant to P.L.1980,
c.67 (C.52:13B-6 et seq.).