Bill > A2370

Introduced Session

This bill allows a municipality to revoke a retail consumption license to sell alcoholic beverages that has not been actively used for five years and reissue the license to another person at public sale. 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 premise. A licensee is required to place the license on "inactive status" when the licensed business closes and the license continues to be held by the licensee of record. Under current law, a municipality may renew an inactive license annually for up to two years following the date it became inactive. If the license has been inactive for more than two years, the licensee is required to file a petition to maintain possession of the license with the Director of the Division of Alcoholic Beverage Control (ABC). The director has the discretion to grant the petition by a special ruling, and there is no limit to the number of special rulings that the director may make with respect to one license. This bill allows a municipality to revoke a license that has been placed on inactive status for five years and reissue the license at public sale. The five year period would not apply if a licensee is unable to use 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. A licensee would be required to file the affidavit every two years. Under section 3 of P.L.2007, c.351 (C.33:1-24.3), only municipalities in which an urban enterprise zone and a Planning Area 1 (Metropolitan), as designated pursuant to the "State Planning Act," is located may acquire an inactive plenary retail consumption license within the municipality and retain the license for up to five years. Municipalities that meet these criteria are permitted to sell inactive licenses at public auction. This bill repeals section 3 of P.L.2007, c.351 (C.33:1-24.3) and extends the privilege of acquiring and selling inactive plenary retail consumption licenses to all municipalities.

Committee Categories

Bill Spearman (D)*, 

Introduced, Referred to Assembly Oversight, Reform and Federal Relations Committee (on 01/09/2024)

Official Document