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  • NJ A4734
  • Allows municipality to issue permits to sell alcoholic beverages in residential redevelopment areas.
In Committee
Crossed OverPassedSignedDead/Failed/Vetoed
2016-2017 Regular Session
This bill allows for the issuance of permits to sell alcoholic beverages within the redevelopment district of certain municipalities that have adopted a Smart Growth Redevelopment Plan for the purpose of attracting residential development to transit hubs within and surrounding redevelopment districts. Specifically, the bill applies to cities of the second class located in a county of the first class with a population of greater than 40,000 but less than 49,000, according to the latest decennial census, which currently includes the municipality of Hackensack. Under the bill, a permit holder would be allowed to sell any alcoholic beverages for consumption on the premises by the glass or other open receptacle. The bill allows a municipality to issue a special permit for every 100 residential dwelling units constructed prior to or following the bill's effective date in accordance with a redevelopment plan. Prior to issuing a permit, the municipality is required to file an application with the Director of the Division of Alcoholic Beverage Control (ABC) demonstrating that a certificate of occupancy has been approved for the required number of residential dwellings necessary to issue additional licenses. The bill requires the municipal issuing authority to randomly select the person to whom the permit is issued from a pool of qualified applicants. The municipal issuing authority may prescribe qualifications for prospective applicants, as a condition of being awarded the permit, including the requirement that applicants operate during certain hours. The bill prohibits transferring a permit to another premises or individual. In addition, the bill allows a municipality to acquire and reissue a permit that goes unused or is otherwise revoked or suspended. Under the bill, a municipality may acquire a permit that is not actively used within six months of the date of issuance or for more than six months due to the establishment's closure. A municipality also may acquire a permit that is suspended or revoked for more than six months due to a violation of the criminal code or the alcoholic beverage licensing statutes. The bill also allows a municipality to acquire a permit if the permit holder fails to offer alcoholic beverages for sale during the times prescribed by the municipality. Except in the case of a revoked permit, a municipality may authorize the permit holder to maintain the permit in an inactive status for more than six months upon demonstration that the permit holder is making a good faith effort to use, or resume active use of, the permit. The annual fee for the permit is to be $25,000 for the first year of the permit's issuance and $15,000 for each year thereafter. For 15 years immediately following the initial issuance of the permit, the fee is to be distributed to the eligible municipality (20%) and the other licensees in the municipality (80%) Following the initial 15 year period, the entire fee is to be distributed to the eligible 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 persons. Because of these restrictions, there is a shortage of licenses in some municipalities. This bill addresses this shortage by allowing an eligible municipality that has approved a redevelopment plan to issue permits to sell alcoholic beverages based on the number of newly constructed residential units.
Oversight, Reform and Federal Relations, Regulatory Oversight and Reform and Federal Relations
INT 1RA REF ARO  (on 3/20/2017)
Date Chamber Action Description
3/20/2017 A INT 1RA REF ARO
Date Motion Yea Nay Other
None specified