Bill Text: NJ S2901 | 2022-2023 | Regular Session | Introduced
Bill Title: Establishes special license to allow food and beverage establishments to sell alcoholic beverages in shopping malls.
Spectrum: Partisan Bill (Democrat 4-0)
Status: (Introduced - Dead) 2022-06-20 - Introduced in the Senate, Referred to Senate Law and Public Safety Committee [S2901 Detail]
Download: New_Jersey-2022-S2901-Introduced.html
Sponsored by:
Senator PAUL A. SARLO
District 36 (Bergen and Passaic)
SYNOPSIS
Establishes special license to allow food and beverage establishments to sell alcoholic beverages in shopping malls.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning the sale of alcoholic beverages and supplementing Title 33 of the Revised Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. As used in this act:
"Food court area" means a communal seating area designated by the shopping mall in which patrons may consume food and beverages purchased from one or more establishments.
"Shopping mall" means a standalone, enclosed publicly accessible building with a gross square footage of not less than 500,000 and a fully enclosed walkway or hall area that serves to connect retail, entertainment, and food and beverage establishments, and office space.
"Special permit" means a permit issued by a municipal governing body pursuant to this section to sell any alcoholic beverage for consumption on the shopping mall premises by the glass or other open receptacle.
"Strip mall" means a retail shopping complex that consists of stores, restaurants, or other businesses in adjacent spaces or storefronts in one or more buildings that are connected by a doorway or open onto a common parking lot or outdoor pedestrian walkway.
b. The governing body of a municipality may, by ordinance or resolution, issue special permits to a person or other legal entity for use in connection with a food and beverage establishment located within a shopping mall. The holder of this permit shall be entitled to sell any alcoholic beverage for consumption on the premises of the retail food establishment or food court area.
The governing body may issue up to four special permits for use in connection with a food and beverage establishment located within a shopping mall with a minimum gross square footage of not less than 500,000 and one additional special permit for each 150,000 square feet greater than the 500,000 minimum square footage established pursuant to this section.
c. A special permit issued pursuant to this section shall not be transferred for use in connection with any premises other than a premises that is operated as a food and beverage establishment located within the same shopping mall. The holder of this permit shall not be entitled to transfer the permit for use in connection with a premises located on the shopping mall property which is not physically connected to the enclosed walkway or hall area that serves to connect retail, entertainment, and food and beverage establishments, and office space.
A
person who acquires a permit in a private transaction pursuant to this
subsection shall pay to the governing body of the municipality in which the
premises is situated a $5,000 permit transfer fee. A permit that is not
transferred pursuant to this section
and expires because it is no longer sited at the food and beverage establishment may be reissued by the governing body pursuant to this section.
d. A special permit shall not be issued for use in connection with a premises operating within a strip mall as defined in subsection a. of this section or a premises in which 25 percent of the gross square footage is comprised of office space that is not open to the public as a retail, entertainment, or food and beverage establishment.
e. A permit issued pursuant to this subsection shall not be subject to the population limitation established pursuant to section 2 of P.L.1947, c.94 (C.33:1-12.14). An interest in a special permit issued pursuant to this section shall be excluded in determining the maximum number of plenary retail consumption licenses issued to a person pursuant to P.L.1962, c.152 (C.33:1-12.31 et seq.). The limitation on the number of special permits issued for use in connection with a shopping mall based on square footage pursuant to subsection b. of this section shall not limit the number of plenary retail consumption licenses that may be issued pursuant to R.S.33:1-12 for use in connection with a shopping mall.
f. Except as otherwise provided by this section, each special permit shall be governed by the provisions of R.S.33:1-12 in the same manner as plenary retail consumption licenses. The permit shall be issued by the governing body of the municipality and shall be renewed annually at the request of the permit holder. The initial issuance fee for the permit shall be $25,000 and the annual renewal fee shall be $5,000.
g. A special permit issued pursuant to this section shall not be issued to any person who would not qualify as a plenary retail consumption license holder pursuant to Title 33 of the Revised Statutes and the rules and regulations of the director.
h. A municipality that prohibits the sale of alcoholic beverages within its borders shall not be entitled to issue a special permit pursuant to this section unless the municipality by resolution or referendum, as appropriate, allows the sale of alcoholic beverages by plenary retail consumption license holders following the effective date of this act.
i. A special permit issued pursuant to this section shall be used in a manner consistent with the provisions of Title 33 of the Revised Statutes, regulations, and any applicable municipal ordinances.
2. This act shall take effect immediately.
STATEMENT
This bill establishes a
special permit that may be issued to a person or
other legal entity for use in connection with a food and
beverage establishment located within a shopping mall. The permit holder would be entitled to sell any alcoholic beverage for consumption on the premises of the retail food establishment or food court area.
Under the bill, a "shopping mall" is defined as a standalone, enclosed publicly accessible building with a gross square footage of not less than 500,000 and a fully enclosed walkway or hall area that serves to connect retail, entertainment, and food and beverage establishments, and office space. The bill defines "food court" as a communal seating area designated by the shopping mall in which patrons may consume food and beverages purchased from one or more establishments.
The bill establishes certain restrictions on the number of special permits that may be issued and the transfer of this permit. Under the bill, a municipality may issue up to four special permits for use in connection with a food and beverage establishment located within a shopping mall with a minimum gross square footage of not less than 500,000. The bill also allows the municipality to issue one additional special license for each 150,000 square feet greater than the 500,000 minimum square footage requirement. The permit holder would be entitled to transfer the permit but only in connection with another food and beverage establishment located within the same shopping mall. A person who acquires a transferred license in a private transaction would be required to pay the municipality a $5,000 transfer fee. An expired permit may be reissued by the municipal governing body.
The bill prohibits a municipality from issuing the permit for use in connection with a strip mall or a premises in which 25 percent of the gross square footage is comprised of office space. A municipality in which the sale of alcoholic beverages is prohibited, also commonly referred to as a "dry town," would be prohibited from issuing these special permits unless the municipality, by resolution or referendum, allows the sale of alcoholic beverages by plenary retail consumption license holders.
Under current law, a municipality may issue plenary retail consumption licenses until the combined total number in the municipality is fewer than one license for each 3,000 municipal residents. A person is prohibited by current law from holding an interest in more than two plenary retail consumption licenses. These restrictions would not apply to the holder of a special permit issued under the bill. In addition, the issuance of special permits would not limit the number of other plenary retail consumption licenses issued for use in connection with a shopping mall.
The initial issuance fee for the license would be $25,000 and the annual renewal fee would be $5,000. Except as otherwise provided by the bill, each special permit would be governed in the same manner as plenary retail consumption licenses.
