Bill Text: NJ A802 | 2026-2027 | Regular Session | Introduced
Bill Title: Allows certain redevelopers to be exempt from inactive alcoholic beverage licenses restriction.
Sponsorship: Partisan Bill (Democrat 1)
Status: (Introduced) 2026-01-13 - Introduced, Referred to Assembly Oversight, Reform and Federal Relations Committee [A802 Detail]
Download: New_Jersey-2026-A802-Introduced.html
STATE OF NEW JERSEY
222nd LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION
Sponsored by:
Assemblyman DAVID BAILEY, JR.
District 3 (Cumberland, Gloucester and Salem)
SYNOPSIS
Allows certain redevelopers to be exempt from inactive alcoholic beverage licenses restriction.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel.
An Act concerning alcoholic beverage licensing 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 (C.33:1-12.39) is amended to read as follows:
1. a. On and after the effective date of P.L.2023, c.290 (C.33:1-10b et al.), a Class C license as defined in R.S.33:1-12 shall not be renewed if the license has not been actively used in connection with the operation of a licensed premises within two consecutive license terms. A license that remains inactive at the end of the two-year period shall expire, provided, however, the governing body of a municipality may in its discretion extend the period during which the license may remain inactive for an additional year.
The time limitation established pursuant to this section shall not apply to a license that is:
(1) held by a developer or redeveloper, or an affiliate thereof, or a tenant of a developer or redeveloper, or affiliate thereof; and
(2) intended to be used at a premises that is located or is intended to be constructed in a redevelopment, improvement, or revitalization area, as defined by section 3 of P.L.2023, c.290 (C.33:1-24.3a) provided the redevelopment, improvement, or revitalization area encompasses at least 250,000 square feet and has secured site plan approvals from the municipality.
b. Notwithstanding subsection a. of this section, if the licensee has been deprived of the use of the licensed premises as a result of eminent domain, fire, or other casualty, and establishes by affidavit filed with the director that the licensee is making a good faith effort to resume active use of the license in connection with the operation of a licensed premise, the time period provided for in this section shall be automatically extended for an additional period of two license terms.
c. Following the effective date of P.L.2023, c.290 (C.33:1-10b et al.), prior to the expiration of an inactive license pursuant to subsection a. of this section, an inactive license shall be:
(1) actively used by the license holder;
(2) transferred in a private transaction for fair market value to another person who intends to use the license. The transferee shall actively use the license in connection with a premises upon receipt of the license; or
(3) transferred from a sending municipality to a receiving municipality in accordance with section 3 of P.L.2023, c.290 (C.33:1-24.3a).
d. The director shall divide the inactive plenary retail consumption licenses that were placed on inactive status prior to the effective date of P.L.2023, c.290 (C.33:1-10b et al.) into quartiles based on the total length of time that the licenses have been inactive, excluding a license exempted pursuant to subsection a. of this section. The licenses shall be transferred pursuant to subsection c. of this section in accordance with the following time schedule:
(1) the quartile that has been inactive for the longest period of time shall be transferred pursuant to subsection c. of this section within one year of the effective date of P.L.2023, c.290 (C.33:1-10b et al.);
(2) the quartile that has been inactive for the second longest period of time shall be transferred pursuant to subsection c. of this section within two years following the effective date of P.L.2023, c.290 (C.33:1-10b et al.);
(3) the quartile that has been inactive for the third longest period of time shall be transferred pursuant to subsection c. of this section within three years following the effective date of P.L.2023, c.290 (C.33:1-10b et al.); and
(4) the quartile that has been inactive for the shortest period of time shall be transferred pursuant to subsection c. of this section within four years following the effective date of P.L.2023, c.290 (C.33:1-10b et al.).
e. Any request for relief under this section shall be accompanied by a nonreturnable filing fee of $100 payable to the director.
(cf: P.L.2023, c.290, s.4)
2. This act shall take effect immediately.
STATEMENT
Under current law, an inactive Class C alcoholic beverage license which generally is used to sell alcoholic beverages to the public, is required to expire after it remains inactive for two consecutive two-year license terms. The governing body of a municipality may extend this time period for an additional year.
This bill establishes an exemption to the two-term expiration period for Class C licenses if they that are used in connection with a premises that is located in or that will be constructed in certain redevelopment, improvement, or revitalization areas. The exemption also would extend to a tenant of a developer, redeveloper, or its affiliate. The bill requires the redevelopment, improvement, or revitalization area to encompass at least 250,000 square feet and have secured site plan approvals from the municipality.
It is the sponsor's intent to allow an exemption for these redevelopment, improvement, or revitalization area because the timeframe for these project areas can vary widely depending on a number of factors, including the project's size, complexity, location, permitting process, and design.
