New Jersey-2018-A5590-Introduced

An Act concerning alcoholic beverage licenses and amending P.L.1977, c.246.

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

1. Section 1 of P.L.1977, c.246, s.1 (C.33:1-12.39) is amended to read as follows:

1. [No] a. The governing board or body of a municipality may renew a Class C license [,] as [the same is] defined in R.S.33:1-12 [,shall be renewed if the same] regardless of whether the license has been actively used in connection with the operation of a licensed premises.

b. The governing board or body of a municipality may deny the renewal of a Class C license that has not been actively used in connection with the operation of a licensed premises within a period of two years prior to the commencement date of the license period for which the renewal application is filed [unless the director, for good cause and] if, after a hearing, [authorizes a further application for one or more renewals within a stated period of years ; provided, however that,] it finds that the holder of the license has not made a good faith effort to resume active use of the license.

c. The governing board or body of a municipality shall not deny the renewal of an inactive Class C license pursuant to subsection b. of this section if the licensee establishes by affidavit filed with and approved by the governing board or body that the licensee has been deprived of the use of the licensed premises as a result of eminent domain [,] or fire or other casualty [, and establishes by affidavit filed with the that is making a good faith effort to resume active use of the license in connection with the operation of a licensed premise then the period of two years provided for in this section shall be automatically extended for an additional period of] . A governing board or body that approves an affidavit for relief filed pursuant to this subsection shall extend the renewal period of the license for an additional two years.

[Any request for relief under this section shall be accompanied by a nonreturnable filing fee of $100.00 payable to the director.]

d. Notwithstanding the restriction in section 2 of P.L.1947, c.94 (C.33:1-12.14) concerning the number of licenses that may be issued in a municipality, a Class C license that has not been renewed pursuant to this section may be reissued at public sale in a manner consistent with the provisions of P.L.1975, c.275 (C.33:1-19.1 et seq.) for use at a licensed premises located within the municipality. The use of a plenary retail consumption license issued pursuant to this subsection shall be in a manner consistent with the provisions of Title 33 of the Revised Statutes and any regulations promulgated by the director.

e. Nothing in this section shall be construed to restrict the authority of a governing board or body of a municipality or the director to issue, renew, or deny a renewal of a license, including but not limited to an inactive Class C license, on any other grounds.

(cf: P.L.1996, c.127, s.1)

2. This act shall take effect immediately but shall not apply to requests for relief

STATEMENT

This bill grants municipalities the authority to renew an inactive Class C license to sell alcoholic beverages regardless of whether the license has been actively used in connection with the operation of a licensed premises. In addition, the bill allows a municipality to deny the renewal of an inactive Class C license if the license holder has not made a good faith effort to actively use the license.

A Class C license includes plenary retail consumption licenses generally issued to bars and restaurants and plenary retail distribution licenses issued to establishments that sell alcoholic beverages for consumption off the licensed premises. An inactive Class C license is a retail license that is not being used at an open and operating licensed premise. A licensee is required to place the license on "inactive status" when the licensed business ceases operation and the license continues to be held by the licensee of record.

Under current law, a municipality may renew an inactive license annually for up to two years following the date it became inactive. If the license has been inactive for more than two years, the licensee is required to file a petition to maintain possession of the license with the Director of the Division of ABC. The director has the discretion to grant the petition by a special ruling, and there is no limit to the number of special rulings that the director may make with respect to one license.

This bill removes from current law the director's authority to grant petitions to renew inactive Class C licenses and grants the authority to municipalities to renew these licenses regardless of whether the license is actively used in connection with a premises. Under the bill, the governing municipal board or body also may deny a license renewal application if it finds that the license holder has not made a good faith effort to resume active use of the license. A municipal board or body would be prohibited from denying an application for renewal by a licensee who establishes by affidavit that he or she has been deprived of the use of the licensed premises as a result of eminent domain, fire or other casualty. The bill allows a municipal board or body that denies a license renewal to reissue the license at public sale in accordance with current law.