Bill Text: NJ S3833 | 2022-2023 | Regular Session | Introduced
Bill Title: Allows municipalities to transfer inactive alcoholic beverage retail licenses for use in redevelopment areas under certain circumstances; allows retail distribution and seasonal consumption licenses to be converted into consumption licenses.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2023-05-11 - Introduced in the Senate, Referred to Senate Law and Public Safety Committee [S3833 Detail]
Download: New_Jersey-2022-S3833-Introduced.html
Sponsored by:
Senator JOSEPH P. CRYAN
District 20 (Union)
SYNOPSIS
Allows municipalities to transfer inactive alcoholic beverage retail licenses for use in redevelopment areas under certain circumstances; allows retail distribution and seasonal consumption licenses to be converted into consumption licenses.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning alcoholic beverage licensing, supplementing Title 33 of the Revised Statutes, and amending P.L.1977, c.246 and R.S.33:1-12.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. (New section) As used in this act:
"Host municipality" means a municipality from which a plenary retail consumption or distribution license is transferred pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill) to the governing body of a receiving municipality.
"Inactive license" means a plenary retail consumption license that has been placed on inactive status and renewed as authorized by the provisions of section 1 of P.L.1977, c.246 (C.33:1-12.39) for a two year period.
"Receiving municipality" means a municipality that enters into an agreement to acquire a plenary retail consumption or distribution license from a host municipality.
"Redevelopment, improvement, or revitalization area" means an urban enterprise zone designated pursuant to P.L.1983, c.303 (C.52:27H-60 et seq.) or P.L.2001, c.347 (C.52:27H-66.2 et al.); a downtown business improvement zone designated pursuant to P.L.1998, c.115 (C.40:56-71.1 et seq.); a pedestrian mall or pedestrian mall improvement or special improvement district as defined in section 2 of P.L.1972, c.134 (C.40:56-66); a transit oriented development as defined by section 2 of P.L.2011, c.149 (C.34:1B-243); an area determined to be in need of redevelopment pursuant to sections 5 and 6 of P.L.1992, c.9 (C.40A:12A-5 and 40A:12A-6); or an area determined to be in need of rehabilitation pursuant to section 14 of P.L.1992, c.9 (C.40A:12A-14), or any improvement which is 100 percent new construction, which is an entirely new improvement not previously occupied or used for any purpose.
2. (New section) a. A governing board or body of a host municipality that is authorized to issue a new plenary retail consumption license shall be entitled to offer the license at public sale pursuant to P.L.1981, c.416 (C.33:1-19.3 et seq.) or offer the license at public sale to the highest bidding governing body of any other municipality in this State.
A license transferred to a receiving municipality pursuant to this section only shall be used in connection with a premises as part of an economic redevelopment plan or located within a redevelopment, improvement, or revitalization area as defined in section 1 of P.L. , c. (C. ) (pending before the Legislature as this bill). The host municipality shall not be entitled to issue a new license pursuant to P.L.1975, c.275 (C.33:1-19.1 et seq.) to replace the license transferred to the receiving municipality pursuant to this section.
b. Notice of the public sale shall be provided to the director and other municipalities at least 90 days prior to the sale. The notice to the municipalities shall specify the minimum acceptable bid and general conditions of sale including a statement that the transferring municipality reserves the right to reject all bids where the highest bid is not accepted.
The funds derived from the sale shall be remitted to the municipal treasurer for the general use of the host municipality.
c. A receiving municipality that acquires a license pursuant to subsection a. of this section shall be entitled to offer the license at public sale pursuant to P.L.1975, c.275 (C.33:1-19.1 et seq.).
d. A license issued by the receiving municipality to a qualified bidder that is not actively used in connection with the operation of a premises within two years of the issuance date shall expire and shall not be reissued by the receiving municipality. The license holder shall not be entitled to appeal the expiration of the license to the director or a court of law unless the license holder 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 license holder is making a good faith effort to resume active use of the license in connection with the operation of a licensed premises.
e. A receiving municipality shall not be entitled to acquire more than one license pursuant to this section each calendar year.
f. No person who would fail to qualify as a licensee under Title 33 of the Revised Statutes shall be permitted to hold an interest in a license transferred under the provisions of this section.
g. Licenses transferred pursuant to the provisions of this section shall be subject to all the provisions of Title 33 of the Revised Statutes, rules and regulations promulgated by the director, and municipal ordinances.
h. A license issued pursuant to this section shall not be included in the total combined population necessary to issue a new plenary retail consumption or seasonal retail consumption license pursuant to section 2 of P.L.1947, c.94 (C.33:1-12.14).
3. (New section) a. The holder of an inactive plenary retail consumption license issued by a host municipality may apply to the governing bodies of the host municipality and a contiguous receiving municipality to use the license in connection with a premises located in the contiguous receiving municipality.
An inactive plenary retail consumption license used in a contiguous receiving municipality only shall be used as part of an economic redevelopment plan or in connection with a premises located within a redevelopment, improvement, or revitalization area.
b. A license used in the contiguous receiving municipality pursuant to this section shall remain in the receiving municipality permanently and shall not be transferred to any other municipality. The host municipality shall not be entitled to issue a new license pursuant to P.L.1975, c.275 (C.33:1-19.1 et seq.) to replace the license transferred to the receiving municipality pursuant to this section.
c. The host and receiving municipality shall submit to the director notice of the intent to transfer a license at least 90 days prior to the transfer. The host and receiving municipalities shall adopt by majority vote identical resolutions authorizing the transfer of the license. The identical resolutions shall establish the license transfer fee, which shall be paid by the license holder and deposited in the general fund of the host municipality. Prior to adopting the resolution pursuant to this section, the governing body of both municipalities shall give special consideration as to whether sufficient attempts were made by the license holder to use or transfer the license for use in connection with a premises located in the host municipality.
d. A license transferred to a receiving municipality pursuant to this section that is not actively used in connection with the operation of a premises within two years of the transfer date shall expire and shall not be reissued by the receiving municipality. The license holder shall not be entitled to appeal the expiration of the license to the director or a court of law unless the license holder 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 license holder is making a good faith effort to resume active use of the license in connection with the operation of a licensed premises.
e. A receiving municipality shall not be entitled to acquire more than one license pursuant to this section in each calendar year.
f. Licenses transferred pursuant to the provisions of this section shall be subject to all the provisions of Title 33 of the Revised Statutes, rules and regulations promulgated by the director, and municipal ordinances.
g. A license issued pursuant to this section shall not be included in the total combined population necessary to issue a new plenary retail consumption or seasonal retail consumption license pursuant to section 2 of P.L.1947, c.94 (C.33:1-12.14).
4. (New section) a. The holder of a plenary retail distribution license issued by a host municipality may apply to the governing bodies of the host municipality and a receiving municipality located in the same county to transfer the plenary retail distribution license to the governing body of the receiving municipality for use in connection with a premises as part of an economic redevelopment plan or located within a redevelopment, improvement, or revitalization area as defined in section 1 of P.L. , c. (C. ) (pending before the Legislature as this bill).
The governing body of the receiving municipality shall convert the plenary retail distribution license to a plenary retail consumption license and offer the consumption license at public sale pursuant to P.L.1975, c.275 (C.33:1-19.1 et seq.).
b. A license used in a receiving municipality pursuant to this section shall remain in the receiving municipality permanently and shall not be transferred to any other municipality. The host municipality shall not be entitled to issue a new license pursuant to P.L.1975, c.275 (C.33:1-19.1 et seq.) to replace the license transferred to the receiving municipality pursuant to this section.
c. The host and receiving municipality shall submit to the director notice of the intent to transfer a license at least 90 days prior to the transfer. The host and receiving municipalities shall adopt by majority vote identical resolutions authorizing the transfer of the license. The identical resolutions shall establish the license transfer fee, which shall be paid by the license holder and deposited in the general fund of the host municipality.
d. A receiving municipality shall not be entitled to acquire more than one license pursuant to this section in each calendar year.
e. Licenses transferred pursuant to the provisions of this section shall be subject to all the provisions of Title 33 of the Revised Statutes, rules and regulations promulgated by the director, and municipal ordinances.
f. A license issued pursuant to this section shall not be included in the total combined population necessary to issue a new plenary retail consumption or seasonal retail consumption license pursuant to section 2 of P.L.1947, c.94 (C.33:1-12.14).
5. (New section) a. A receiving municipality in which the number of plenary retail consumption licenses has reached the population limitation established in section 2 of P.L.1947, c.94 (C.33:1-12.14) may issue a request for proposal to acquire from a license holder an additional inactive plenary retail consumption license that was initially issued by any other host municipality in this State. The inactive license acquired pursuant to this section shall be used in connection with a premises as part of an economic redevelopment plan or a redevelopment, improvement, or revitalization area as defined in section 1 of P.L. , c. (C. ) (pending before the Legislature as this bill).
b. The request for proposal issued pursuant to subsection a. of this section shall specify a time and date after which no further applications from license holders will be accepted. The request shall be published in a newspaper circulating generally throughout the State by not less than two insertions, one week apart, the second of which shall be made not less than 30 days prior to the time and date specified in the notice as the time and date after which no further applications will be accepted. In addition, the request for proposal shall be published by the governing body on the official Internet website of the receiving municipality. The request for proposal shall require that all bids shall be sealed and remain confidential to other bidders. Notwithstanding the provisions of section 1 of P.L.1981, c. 416 (C.33:1-19.3) the license shall be awarded to the lowest qualified bidder.
c. The holder of an inactive plenary retail consumption license shall apply to the governing body of the host municipality for permission to transfer the inactive plenary retail consumption license from the host municipally prior to submitting a bid in response to the request for proposal. The governing body of the host municipality may approve the application only by a resolution adopted by a majority vote. The host municipality shall not require the applicant to disclose the location of the proposed licensed premises.
After the receiving municipality accepts a successful bid, the host municipality shall submit to the director notice of the intent to transfer a license at least 90 days prior to the transfer. The host and receiving municipalities shall adopt by majority vote identical resolutions authorizing the transfer of the license. The identical resolutions shall establish the license transfer fee, which shall be paid by the license holder and deposited in the general fund of the host municipality. Prior to adopting the resolution pursuant to this section, the governing body of both municipalities shall give special consideration as to whether sufficient attempts were made by the license holder to use or transfer the license for use in connection with a premises located in the host municipality.
d. A receiving municipality that acquires a license pursuant to subsection a. of this section shall be entitled to offer the license at public sale pursuant to P.L.1975, c.275 (C.33:1-19.1 et seq.). A license issued by the receiving municipality to a qualified bidder that is not actively used in connection with the operation of a premises within two years of the issuance date shall expire and shall not be reissued by the receiving municipality. The license holder shall not be entitled to appeal the expiration of the license to the director or a court of law unless the license holder 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 license holder is making a good faith effort to resume active use of the license in connection with the operation of a licensed premises.
e. A receiving municipality shall not be entitled to acquire more than one license pursuant to this section in each calendar year.
f. Licenses transferred pursuant to the provisions of this section shall be subject to all the provisions of Title 33 of the Revised Statutes, rules and regulations promulgated by the director, and municipal ordinances.
g. A license issued pursuant to this section shall not be included in the total combined population necessary to issue a new plenary retail consumption or seasonal retail consumption license pursuant to section 2 of P.L.1947, c.94 (C.33:1-12.14).
6. Section 1 of P.L.1977, c.246 (C.33:1-12.39) is amended to read as follows:
1. [No] a. Following the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill), a Class C license [,] as [the same is] defined in R.S.33:1-12 [,] shall not be renewed if the [same] license 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 after a hearing, authorizes a further application for one or more renewals within a stated period of years; provided, however that, if] . A license that remains inactive at the end of the two-year period shall expire. Prior to the expiration of a plenary retail consumption license pursuant to this subsection, the license holder may transfer the license for use as part of an economic redevelopment plan or in connection with a redevelopment, improvement, or revitalization area pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill).
b. A license shall not expire pursuant to 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 [he] the licensee 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 two years.
Any request for relief under this section shall be accompanied by a nonreturnable filing fee of [$100.00] $100 payable to the director.
(cf: P.L.1996, c.127, s.1)
7. R.S.33:1-12 is amended to read as follows:
33:1-12. Class C licenses shall be subdivided and classified as follows:
Plenary retail consumption license. 1. The holder of this license shall be entitled, subject to rules and regulations, to sell any alcoholic beverages for consumption on the licensed premises by the glass or other open receptacle, and also to sell any alcoholic beverages in original containers for consumption off the licensed premises; but this license shall not be issued to permit the sale of alcoholic beverages in or upon any premises in which a grocery, delicatessen, drug store or other mercantile business is carried on, except as hereinafter provided. The holder of this license shall be permitted to conduct consumer wine, beer and spirits tasting events and samplings for a fee or on a complimentary basis pursuant to conditions established by rules and regulations of the Division of Alcoholic Beverage Control, provided however, that the holder of this license complies with the terms and conditions set forth in section 3 of P.L.2009, c.216 (C.33:1-12d). Subject to such rules and regulations established from time to time by the director, the holder of this license shall be permitted to sell alcoholic beverages in or upon the premises in which any of the following is carried on: the keeping of a hotel or restaurant including the sale of mercantile items incidental thereto as an accommodation to patrons; the sale, at an entertainment facility as defined in R.S.33:1-1, having a seating capacity for no less than 4,000 patrons, of mercantile items traditionally associated with the type of event or program held at the site; the sale of distillers', brewers' and vintners' packaged merchandise prepacked as a unit with other suitable objects as gift items to be sold only as a unit; the sale of novelty wearing apparel identified with the name of the establishment licensed under the provisions of this section; the sale of cigars, cigarettes, packaged crackers, chips, nuts and similar snacks and ice at retail as an accommodation to patrons, or the retail sale of nonalcoholic beverages as accessory beverages to alcoholic beverages; or, in commercial bowling establishments, the retail sale or rental of bowling accessories and the retail sale from vending machines of candy, ice cream and nonalcoholic beverages. The fee for this license shall be fixed by the governing board or body of the municipality in which the licensed premises are situated, by ordinance, at not less than $250 and not more than $2,500. No ordinance shall be enacted which shall raise or lower the fee to be charged for this license by more than 20% from that charged in the preceding license year or $500.00, whichever is the lesser. The governing board or body of each municipality may, by ordinance, enact that no plenary retail consumption license shall be granted within its respective municipality.
The holder of this license shall be permitted to obtain a restricted brewery license issued pursuant to subsection 1c. of R.S.33:1-10 and to operate a restricted brewery immediately adjoining the licensed premises in accordance with the restrictions set forth in that subsection. All fees related to the issuance of both licenses shall be paid in accordance with statutory law.
Seasonal retail consumption license. 2. (1) The holder of this license shall be entitled, subject to rules and regulations, to sell any alcoholic beverages for consumption on the licensed premises by the glass or other open receptacle, and also to sell any alcoholic beverages in original containers for consumption off the licensed premises, during the summer season from May 1 until November 14, inclusive, or during the winter season from November 15 until April 30, inclusive.
(2) In addition, the director shall issue to the holder of this license, upon request by the licensee, one-day permits that shall entitle the license holder to sell alcoholic beverages for consumption on the licensed premises during the season when the license holder is not authorized to sell alcoholic beverages pursuant to subparagraph (1) of this subsection. The number of one-day permits issued to a licensee pursuant to this subsection shall not exceed an aggregate of 14 permits in one calendar year. A one-day permit issued pursuant to this subsection shall be valid for 24 consecutive hours. The fee for each one-day permit shall be $500.
The governing body of the municipality in which the licensed premises is situated may place reasonable conditions upon a one-day permit for the purpose of maintaining public safety on the licensed premises and immediately surrounding area. The costs associated with the reasonable conditions placed on the one-day permit shall be assumed by the holder of this license.
(3) This license shall not be issued to permit the sale of alcoholic beverages in or upon any premises in which a grocery, delicatessen, drug store or other mercantile business is carried on, except as hereinafter provided. Subject to such rules and regulations established from time to time by the director, the holder of this license shall be permitted to sell alcoholic beverages in or upon the premises in which any of the following is carried on: the keeping of a hotel or restaurant including the sale of mercantile items incidental thereto as an accommodation to patrons; the sale of distillers', brewers' and vintners' packaged merchandise prepacked as a unit with other suitable objects as gift items to be sold only as a unit; the sale of novelty wearing apparel identified with the name of the establishment licensed under the provisions of this section; the sale of cigars, cigarettes, packaged crackers, chips, nuts and similar snacks and ice at retail as an accommodation to patrons; or the retail sale of nonalcoholic beverages as accessory beverages to alcoholic beverages.
(4) A licensee who held this license prior to the effective date of P.L. , c. (pending before the Legislature as this bill) and wishes to exchange the license for a plenary retail consumption license may surrender the license to the issuing authority, who shall convert the license to a plenary retail consumption license and issue it to the license holder. Thereafter, the licensee may sell any alcoholic beverages during 12 months of each year in accordance with the provisions of this section. A person who exchanges this license for a plenary retail consumption license shall pay the annual fee established by the issuing authority for holding a plenary retail consumption license. The governing board or body of the municipality in which the licensed premises is situated shall not prohibit the holder of this license from converting it in accordance with this subsection or limit the licensee from exercising the same privileges as the holder of a plenary retail consumption license. A person who converts this license shall be entitled to sell alcoholic beverages on the same days and during the same hours as other plenary retail consumption license holders within the same municipality.
(5) The fee for this license shall be fixed by the governing board or body of the municipality in which the licensed premises are situated, by ordinance, at [75%] 75 percent of the fee fixed by said board or body for plenary retail consumption licenses. The governing board or body of each municipality may, by ordinance, enact that no seasonal retail consumption license shall be granted within its respective municipality.
Plenary retail distribution license. 3. a. The holder of this license shall be entitled, subject to rules and regulations, to sell any alcoholic beverages for consumption off the licensed premises, but only in original containers; except that licensees shall be permitted to conduct consumer wine, beer, and spirits tasting events and samplings on a complimentary basis pursuant to conditions established by rules and regulations of the Division of Alcoholic Beverage Control, provided however, that the holder of this license complies with the terms and conditions set forth in section 3 of P.L.2009, c.216 (C.33:1-12d).
The governing board or body of each municipality may, by ordinance, enact that this license shall not be issued to permit the sale of alcoholic beverages in or upon any premises in which any other mercantile business is carried on, except that any such ordinance, heretofore or hereafter adopted, shall not prohibit the retail sale of distillers', brewers' and vintners' packaged merchandise prepacked as a unit with other suitable objects as gift items to be sold only as a unit; the sale of novelty wearing apparel identified with the name of the establishment licensed under the provisions of this act; cigars, cigarettes, packaged crackers, chips, nuts and similar snacks, ice, and nonalcoholic beverages as accessory beverages to alcoholic beverages. The fee for this license shall be fixed by the governing board or body of the municipality in which the licensed premises are situated, by ordinance, at not less than $125 and not more than $2,500. No ordinance shall be enacted which shall raise or lower the fee to be charged for this license by more than [20%] 20 percent from that charged in the preceding license year or [$500.00] $500, whichever is the lesser. The governing board or body of each municipality may, by ordinance, enact that no plenary retail distribution license shall be granted within its respective municipality.
Limited retail distribution license. 3. b. The holder of this license shall be entitled, subject to rules and regulations, to sell any unchilled, brewed, malt alcoholic beverages in quantities of not less than 72 fluid ounces for consumption off the licensed premises, but only in original containers; provided, however, that this license shall be issued only for premises operated and conducted by the licensee as a bona fide grocery store, meat market, meat and grocery store, delicatessen, or other type of bona fide food store at which groceries or other foodstuffs are sold at retail; and provided further that this license shall not be issued except for premises at which the sale of groceries or other foodstuffs is the primary and principal business and at which the sale of alcoholic beverages is merely incidental and subordinate thereto. The fee for this license shall be fixed by the governing body or board of the municipality in which the licensed premises are situated, by ordinance, at not less than $31 and not more than $63. The governing board or body of each municipality may, by ordinance, enact that no limited retail distribution license shall be granted within its respective municipality.
Plenary retail transit license. 4. The holder of this license shall be entitled, subject to rules and regulations, to sell any alcoholic beverages, for consumption only, on railroad trains, airplanes, limousines and boats, while in transit. The fee for this license for use by a railroad or air transport company shall be $375, for use by the owners of limousines shall be $31 per vehicle, and for use on a boat shall be $63 on a boat 65 feet or less in length, $125 on a boat more than 65 feet in length but not more than 110 feet in length, and $375 on a boat more than 110 feet in length; such boat lengths shall be determined in the manner prescribed by the Bureau of Customs of the United States Government or any federal agency successor thereto for boat measurement in connection with issuance of marine documents. A license issued under this provision to a railroad or air transport company shall cover all railroad cars and planes operated by any such company within the State of New Jersey. A license for a boat or limousine issued under this provision shall apply only to the particular boat or limousine for which issued, and shall permit the purchase of alcoholic beverages for sale or service in a boat or limousine to be made from any Class A and B licensee or from any Class C licensee whose license privilege permits the sale of alcoholic beverages in original containers for off-premises consumption. An interest in a plenary retail transit license issued in accordance with this section shall be excluded in determining the maximum number of retail licenses permitted under P.L.1962, c.152 (C.33:1-12.31 et seq.).
Club license. 5. The holder of this license shall be entitled, subject to rules and regulations, to sell any alcoholic beverages but only for immediate consumption on the licensed premises and only to bona fide club members and their guests. The fee for this license shall be fixed by the governing board or body of the municipality in which the licensed premises are situated, by ordinance, at not less than $63 and not more than $188. The governing board or body of each municipality may, by ordinance, enact that no club licenses shall be granted within its respective municipality. Club licenses may be issued only to such corporations, associations and organizations as are operated for benevolent, charitable, fraternal, social, religious, recreational, athletic, or similar purposes, and not for private gain, and which comply with all conditions which may be imposed by the Director of the Division of Alcoholic Beverage Control by rules and regulations.
The provisions of section 23 of P.L.2003, c.117 amendatory of this section shall apply to licenses issued or transferred on or after July 1, 2003, and to license renewals commencing on or after July 1, 2003.
Sporting facility license. 6. The holder of this license shall be entitled, subject to rules and regulations, to sell at retail or to serve any alcoholic beverages as the owner, operator, lessee, or concessionaire of a sporting facility by the glass or other receptacle or in original containers only on the premises of the sporting facility.
Notwithstanding any other provision of Title 33 of the Revised Statutes and subject to conditions established by the director, the holder of this license may share direction and control of the premises to be licensed and share proceeds and profits from the sale of alcoholic beverages with the owner, operator, concessionaire, or lessee of the facility. The holder of this license shall be permitted to conduct consumer wine, beer, and spirits tasting events and samplings for a fee or on a complimentary basis provided, however, the license holder complies with the provisions of section 3 of P.L.2009, c.216 (C.33:1-12d) and rules and regulations promulgated thereto. Notwithstanding any law, rule or regulation to the contrary, the holder of this license shall be entitled to establish an all-inclusive area within the licensed sporting facility, provided the all-inclusive area is limited to one area within the sporting facility for each game or event and the capacity of the all-inclusive area does not exceed 500 persons.
The fee for this license shall be $2,500 for venues with a capacity of less than 7,500 persons; $5,000 for venues with a capacity of not less than 7,500 persons but not more than 14,999 persons; $7,500 for venues with a capacity of not less than 15,000 persons but not more than 22,499 persons; and $10,000 for venues with a capacity of 22,500 persons or more.
For the purposes of this subsection:
"Sporting facility"
means a stadium, arena, team training facility, or similar venue located on
public property where alcoholic beverages are served or sold at retail for
consumption on the premises by the glass or other open receptacle or in
original containers.
"Team training facility" shall include team offices and team headquarters.
(cf: P.L.2018, c.147, s.1)
8. This act shall take effect on the first day of the seventh month following the date of enactment.
STATEMENT
This bill establishes several procedures by which a plenary retail consumption license, generally issued to bars and restaurants, may be transferred to another municipality.
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. This bill allows a municipality that is entitled to issue an additional plenary retail consumption license to offer the license at public sale to the highest bidding governing body of any other municipality in this State. A license transferred to a receiving municipality pursuant to this section only is to be used in connection with a premises as part of an economic redevelopment plan or located within a redevelopment, improvement, or revitalization area. The bill requires the host municipality to provide notice of the public sale to the director and other municipalities at least 90 days prior to the sale. The notice to the municipalities is to specify the minimum acceptable bid and general conditions of sale including a statement that the transferring municipality reserves the right to reject all bids where the highest bid is not accepted. The funds derived from the sale are to be remitted to the municipal treasurer for the general use of the host municipality. A receiving municipality that acquires the license would be entitled to offer the license at public sale. A license issued by the receiving municipality to a qualified bidder that is not actively used in connection with the operation of a premises within two years of the issuance date is to expire and not be reissued by the receiving municipality. The receiving municipality would be prohibited from acquiring more than one license through this bidding process in each calendar year.
In addition, this bill establishes two procedures for transferring an inactive plenary retail consumption license to a different municipality. Under current law, an inactive plenary retail consumption license is a license to sell alcoholic beverages for on premises consumption that is not being used at an open and operating licensed premises. 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 this bill, a license that remains inactive for two years is to expire. Prior to the expiration of the license, the license holder may apply to the governing body of the host municipality that issued the license and a contiguous neighboring municipality to use the license in connection with a premises located in the contiguous receiving municipality. An inactive plenary retail consumption license used in a contiguous receiving municipality only would be used as part of an economic redevelopment plan or in connection with a premises located within a redevelopment, improvement, or revitalization area. The bill requires the transferred license to remain in the contiguous receiving municipality and prohibits the transfer of the license to any other municipality. Under the bill, the host and receiving municipalities are to submit to the director notice of the intent to transfer a license at least 90 days prior to the transfer. The bill requires the host and receiving municipalities to adopt by majority vote identical resolutions authorizing the transfer of the license. The identical resolutions are to establish the license transfer fee agreed upon by both municipal governing bodies. A receiving municipality that acquires a license would be entitled to offer the license at public sale in accordance with current law. A license issued by a receiving municipality that is not actively used in connection with the operation of a premises within two years of the transfer date would expire and not be reissued by the receiving municipality. The bill prohibits a receiving contiguous municipality from acquiring more than one license through this transfer process in each calendar year.
This bill also allows a receiving municipality that has reached the license population limitation established under current law to issue a request for proposal (RFP) to acquire an inactive plenary retail consumption license from any license holder in this State. The bill requires the receiving municipality to issue the license for use in connection with a premises as part of economic redevelopment plan or a redevelopment, improvement, or revitalization area. The RFP would specify a time and date after which no further applications from license holders will be accepted. The municipality is to publish the RFP in a newspaper circulating generally throughout the State by not less than two insertions, one week apart, the second of which is to be made not less than 30 days prior to the time and date specified in the notice as the time and date after which no further applications will be accepted. In addition, the request for proposal is to be published by the governing body on the official Internet website of the receiving municipality. The RFP is to require that all bids to be sealed and remain confidential to other bidders. The holder of an inactive plenary retail consumption license is to apply for permission to transfer the inactive plenary retail consumption license from the host municipality prior to submitting a bid in response to the RFP. The host municipality may approve the application by resolution. The host municipality would be prohibited from requiring the applicant to disclose the location of the proposed licensed premises.
After the receiving municipality accepts a successful bid, the host and receiving municipality are to submit to the ABC director notice of the intent to transfer a license at least 90 days prior to the transfer. The bill requires the issuing and receiving municipalities to adopt by majority vote identical resolutions authorizing the transfer of the license. The identical resolutions are to establish the license transfer fee agreed upon by both municipal governing bodies. The bill requires a license that is not actively used within two years of issuance date to expire. A receiving municipality that issued the RFP would be prohibited from acquiring more than one license through this process in each calendar year.
In addition, the bill establishes a procedure by which existing plenary retail distribution licenses may be converted to plenary retail consumption licenses as part of an economic redevelopment plan or
for use in a redevelopment, improvement, or revitalization area. Under current law, a plenary retail distribution license allows for the sale of alcoholic beverages off the licensed premises and is generally issued to liquor stores and supermarkets. The procedure allows the holder of a plenary retail distribution license to apply to a host municipality and receiving municipality located in the same county to transfer the distribution license to the receiving municipality. Upon receiving the distribution license, the receiving municipality would be required to convert the plenary retail distribution license to a plenary retail consumption license and then issue that license at public sale in accordance with current law. The bill requires the issuing and receiving municipalities to adopt by majority vote identical resolutions authorizing the transfer of the license. The bill prohibits a receiving municipality from acquiring and converting more than one distribution license through this transfer process in each calendar year.
The bill also allows a person who held a seasonal retail consumption license prior to the bill's effective date to surrender the license to the issuing authority, which then may exchange the license for a plenary retail consumption license. This license will permit the licensee to sell alcoholic beverages for consumption on the licensed premises throughout the entire year. Under current law, a seasonal retail consumption license allows for the sale of alcoholic beverages for on-site consumption for a limited time during the summer or winter season. A license issued during the summer season allows the licensee to serve alcoholic beverages from May 1 through November 14. The holder of a winter seasonal license may sell alcoholic beverages from November 15 to April 30. This bill allows a seasonal retail consumption license to convert the license to a full-year consumption license and requires the licensee to pay the fees associated with the full-year license.
The plenary retail consumption licenses transferred to or acquired by a receiving municipality under the bill's provisions would not be included in the population formula used to issue new licenses.
