Bill > S1835

Introduced Session

Under the provisions of this bill, an inactive plenary retail consumption license may be purchased by (1) a corporation or other legal entity operating or intending to operate a restaurant or bar in a qualifying smart growth municipality; or (2) the owner of a real estate development project in a qualifying smart growth municipality, provided that the inactive license would be transferred to a restaurant or bar in the real estate development project. The bill repeals sections 1 and 2 of P.L.2007, c.351 (C.33:1-24.1 and 33:1-24.2) which permit the Director of the Division of Alcoholic Beverage Control (ABC) to issue special permits for the service of alcoholic beverages in smart growth development projects. The bill first requires the Director of the ABC to determine whether an inactive license may be transferred to a qualifying smart growth municipality. The director is required to approve the transfer if the municipality is unable to issue a sufficient number of new plenary retail consumption licenses to satisfy the anticipated demand for such licenses in a real estate development project because of the statutory limitation on the number of plenary retail consumption licenses (currently one for each 3,000 of the population). After a contract for the sale of a license has been signed, the seller is required to obtain resolutions adopted by the issuing authorities of the sending municipality and the qualifying smart growth municipality. The resolution adopted by the sending municipality must consent to the transfer of the license to the qualifying smart growth municipality. The resolution adopted by the issuing authority of the qualifying smart growth municipality must state that the municipality wishes to acquire the license and that it will be administered in the same manner as other plenary retail consumption licenses and in accordance with all applicable municipal ordinances. The bill requires the purchaser to pay to the sending municipality prior to the transfer of the license a fee equal to 20 times the annual renewal fee for a plenary retail consumption license in the sending municipality. The fee is to be distributed in the following manner: (1) twenty-five percent is to be paid to the sending municipality; (2) twenty-five percent is to be paid to the director; and (3) fifty percent is to be divided equally among and paid to the holders of plenary retail consumption licensees in the qualifying smart growth municipality. The bill requires the purchaser to pay the qualifying smart growth municipality any fees required for the transfer of a plenary retail consumption license as well as the annual renewal fee, prorated to the next June 30, the annual date of renewal for all retail licenses. A license purchased pursuant to the provisions of the bill may only be transferred to a premises located within the same real estate development project. A license may be transferred to a corporation or other legal entity that operates a bar or restaurant in the same real estate development project or to the owner of the real estate development project. The bill requires the Director of the ABC to assign a distinctive designation for the license number, after the initial transfer of the license, in order to identify the license as being restricted and subject to the provisions of this bill. The bill prohibits the director from issuing a special concessionaire permit for any location or premises which is eligible to obtain a license to serve alcoholic beverages under this bill. Finally, the bill amends section 3 of P.L.2007, c.351 (C.33:1-24.3) which provides that a municipality containing an urban enterprise zone or a Planning Area 1 (Metropolitan) may acquire by purchase any existing plenary retail consumption licenses within the municipality that are inactive and retain them for up to five years. Under this bill, the municipality must acquire the license by purchase and the license must be inactive for more than three years. The bill also clarifies that the municipality may retain the inactive licenses notwithstanding that the Director of ABC has not issued a special ruling and the license holder has not paid the annual license renewal fees. The bill further amends current law to provide that a municipality may have a public sale of an inactive plenary retail consumption license for use only at a licensed premises in a real estate development project within a qualifying smart growth municipality as defined in the bill.

Committee Categories

Joe Vitale (D)*, 

Introduced in the Senate, Referred to Senate Law and Public Safety Committee (on 02/28/2022)

Official Document