New Jersey Division of Alcoholic Beverage Control Adapts to COVID-19 Realities

Special Ruling Relaxing Signature Requirement, Product Returns, Credit, Notices of Obligation, and Bill and Hold

1. Signatures on Invoices. New Jersey regulations, like many other states, require that a delivery slip, invoice, waybill, or similar document be signed at the time any alcoholic beverage is delivered by a manufacturer or wholesaler. To reduce in-person contact and consistent with social distancing protocol during the COVID-19 crisis, the ABC is permitting alternate means to acknowledge receipt of a delivery. Acceptable alternate methods include a retailer sending an e-mail or text message to the wholesaler contemporaneously acknowledging receipt of the delivery and allowing a retailer to photograph the invoice and send an electronic acknowledgment to the wholesaler.
2. Returns. Similar to federal law, New Jersey allows returns only under a limited set of circumstances, such as product defect, breakage, incorrect product delivered, and delivery of a product likely to spoil. Citing the unanticipated significant reduction of on-premise retail sales, the ABC is permitting wholesalers to accept returns from retail consumption licensees (on-premise licenses) only for purchases made between February 23 and March 16, 2020. Wholesalers are not required to accept returns, but if they do, the return policy must be applied on a non-discriminatory basis. This relaxation does not apply to retail distribution licensees (off-premise licenses), who the ABC has found have not been hit as hard by COVID-19 (in fact, we reports have shown that many Pennsylvania residents have been crossing the river to purchase alcohol in New Jersey liquor stores).
3. Extension of Credit. In New Jersey, wholesalers may generally extend 30-day credit terms to retailers. With regard to purchases made between February 23 and March 16, 2020, wholesalers may extend credit through May 15, 2020. Extensions of credit must be applied on a non-discriminatory basis. Like the relaxation of the return regulation above, the foregoing extension of credit may be offered to retail consumption licensees (on-premise licenses).
4. Notice of Obligation. Ordinarily, if a retailer does not pay in accordance with the prescribed credit terms must send a Notice of Obligation (“NOO”)to the retailer personally or by first class mail. During the COVID-19 crisis, the New Jersey wholesaler may deliver the NOO via email.
5. Bill and Hold. Wholesalers are permitted to sell products to retailers and hold them, for a fee, in the wholesaler’s warehouse for up to 75 days before the retailer must accept delivery. The ABC is permitting wholesalers to store products that are already on a “bill and hold” arrangement to store products for an additional 30 days, provided they do so on a non-discriminatory basis.

Special Ruling Relaxing Transit Insignias

Special Ruling Suspending Enforcement of Violations Against New Jersey Distilleries Producing Hand Sanitizer to Fight COVID-19

COVID-19 Executive Order No. 122 and Additional Restrictions for New Jersey Essential Businesses

1. Occupancy is limited 50% of the stated maximum store capacity, if applicable, at one time;
2. Where possible, establish hours permitting access solely to high-risk individuals;
3. Install a physical barrier, such as a shield guard, between customers and cashiers or otherwise ensure six feet of distance between those individuals, except at the moment of payment and/or exchange of goods;
4. Require infection control practices, such as regular hand washing, coughing and sneezing etiquette, and proper tissue usage and disposal;
5. Provide employees adequate breaks for repeated handwashing throughout the workday;
6. Arrange for contactless pay options, pickup, and/or delivery of goods wherever feasible (and consider populations that do not have access to internet service);
7. Provide sanitization materials, such as hand sanitizer and sanitizing wipes, to staff and customers;
8. Require frequent sanitization of high-touch areas such as restrooms, credit card machines, keypads, counters, and shopping carts;
9. Place conspicuous signage alerting staff and customers to the required six feet of physical distance;
10. Demarcate six feet of spacing in check-out lines for social distancing; and
11. Require workers and customers to wear cloth face coverings (or better) while on the premises, (with some limited exceptions), and require workers to wear gloves when in contact with customers or goods. These items must be provided at the employer’s expense.
12. If a customer refuses to wear a cloth face covering for non-medical reasons and if such covering cannot be provided to the individual by the business at the point of entry, then the business must decline entry to the individual.