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4 N.J.A.R. 294

Seifert, Todd, t/a Seifert Distributing Company et al. For a Review and Hearing Concerning N.J.A.C. 13:2-24.2(a), 13:2-25.3(b) and 13:2-33.1
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Citation: 4 N.J.A.R. 294
Decision Date: 1983
Agency: DIVISION OF ALCOHOLIC BEVERAGE CONTROL
Synopsis: As a result of an order issued by the Appellate Division, the Director of the Division of Alcoholic Beverage Control conducted extensive informational hearings on N.J.A.C 13:2-25.2(a), 13:2-25.3(b) and 13:2-33.1. These 'primary source' and 'brand registration' regulations were adopted in 1979 but had not been enforced since August 1982. The Director determined that the standard by which to judge the regulations was whether they have a rational relationship to the purpose intended, not whether there might be another way to accomplish the same goals. Applying that standard, the Director rejected claims that the regulations had an adverse effect on the consumer or that they were violative of the anti-trust laws. The Director found that the regulations serve the salutory purpose of identifying licensees subject to taxation through the filing of reliable and verifiable documentation, that they provide a degree of stability within the marketplace and in the structure of the alcoholic beverage industry within New Jersey, that they solve the problem of knowing who the alcoholic beverage industry members are and that they promote and enhance interbrand competition. Accordingly, the Director determined that the regulations serve valid public purposes and that the goals served by the regulations are necessary to the proper and effective regulation of the alcoholic beverage industry.
Rule(s) Cited: 13:2-25.2(a) 13:2-25.3(b) 13:2-33.1