What is a Conflict License?
New Jersey Alcoholic Beverage Laws
Under New Jersey’s Alcoholics Beverage laws, a Municipal Issuing Authority will be conflicted out of its authority if any of the governing board members have a direct or indirect interest in the license or the corporation which holds interest in the license. This makes the license a “Conflict License,” and it is only relevant to retail consumption (bar/restaurant) and retail distribution (liquor store) licenses. Club licenses are not subject to the “Conflict License” requirements.
If you are a council member of an ABC Board member and you hold an interest in a liquor license within that municipality, you need to be aware of these restrictions. In circumstances where a member of the issuing authority holds an interest in the license, the license action (application, renewal , transfer) must be considered by the Director of the Division of Alcoholic Beverage Control. The general procedure is the same as what is used by the local issuing authority. The regular application, along with the resolution, is used with the addition of a conflict addendum affixed to the renewal application. The normal license fee is paid to the municipality and a $200 filing fee is paid to the State. The municipal clerk or local A.B.C. Board secretary must forward the application and fees to the Division of Alcoholic Beverage Control (Licensing Bureau) for consideration along with the Resolution. Failure to follow these procedures with affect you ability to renew the license and possibly result in the filing of civil charges by the Division against your license.
Call (732) 858-5857 today to speak with an attorney about your New Jersey liquor license.
N.J.A.C. 13:2-4.1 Issuance and Transfer of Conflict Licenses
N.J.A.C. 13:2-4.1 states the following:
- No municipal issuing authority may issue, renew, or transfer to from any of its members, or issue, renew or transfer a license to or from any corporation, organization, or association in which any of its members is interest directly or indirectly.
- No municipal issuing authority may transfer to other premises a license of any of its members or transfer to other premises a license of any corporation, organization or association in which any of is members is interested, directly or indirectly.
- Whenever the municipal issuing authority is prohibited from acting by this section, or is unable to reach a quorum due to individual conflicts of interest, application must be made to the Director of the Division of Alcoholic Beverage Control and shall be governed by the subchapter.
- The provisions of (a) and (b) shall not apply to club licenses.
New Jersey Liquor License Attorneys
For assistance with your liquor licensing matters, contact the alcoholic beverage law attorneys at Proetta, Oliver & Fay. Our firm can be reached 24/7 by calling (732) 858-5857.
