Bill Text: NJ A1172 | 2018-2019 | Regular Session | Introduced
Bill Title: Permits issuance of additional alcoholic beverage licenses in municipalities located in certain project areas.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2018-01-09 - Introduced, Referred to Assembly Oversight, Reform and Federal Relations Committee [A1172 Detail]
Download: New_Jersey-2018-A1172-Introduced.html
STATE OF NEW JERSEY
218th LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2018 SESSION
Sponsored by:
Assemblyman EDWARD H. THOMSON
District 30 (Monmouth and Ocean)
SYNOPSIS
Permits issuance of additional alcoholic beverage licenses in municipalities located in certain project areas.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel.
An Act concerning alcoholic beverage licenses and supplementing Title 33 of the Revised Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. As used in this act:
"Host municipality" means a municipality within a project area.
"Original transferee" means the State, a political subdivision or subdivisions thereof, or a board, commission, authority or agency established by the State, to which control of a project area has been transferred for purposes of conversion, redevelopment, or revitalization.
"Project area" means an area at which a federally owned or operated military installation was closed or scheduled for closure by recommendation of the federal Base Realignment and Closure Commission on or after May 13, 2005, the control of which has been transferred to an original transferee.
"Special license" means a plenary retail consumption license to sell alcoholic beverages for consumption on the premises issued by a host municipality pursuant to section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill).
2. a. (1) Notwithstanding the provisions of section 2 of P.L.1947, c.94 (C.33:1-12.14), the issuing authority of a host municipality may, by ordinance or resolution, issue one special license to one or more individual corporations or other types of legal entities operating a hotel, restaurant or bar on any premises located within a project area as defined in section 1 of P.L. , c. (C. ) (pending before the Legislature as this bill).
(2) In addition to the special licenses authorized under paragraph (1) of this subsection and notwithstanding the provisions of section 2 of P.L.1947, c.94 (C.33:1-12.14), a number of initially undesignated special licenses shall be available for issuance by any host municipality in a project area. The number of undesignated special licenses available in a project area shall be equal to two times the number of host municipalities in the project area. Prior to issuing an undesignated special license, a host municipality shall first have issued the special license authorized pursuant to paragraph (1) of this subsection.
b. The fee for the initial issuance of a license issued pursuant to this section shall be based upon the average sales price of plenary retail consumption licenses in the applicable host municipality or municipalities during the five years immediately preceding the date of enactment of P.L. , c. (C. ) (pending before the Legislature as this bill). If less than three plenary retail consumption licenses have been sold in the host municipality within the previous five years, the applicant shall obtain an appraisal, at the applicant's expense, to determine the appropriate fair market value of the license. The appraisal process shall include an examination of previous transactions in the host municipality or municipalities, as the case may be, and shall reflect what a willing buyer, under no pressure to buy, would pay a willing seller, under no pressure to sell, for a plenary retail consumption license in the host municipality or municipalities.
c. The initial issuance fee established pursuant to this section for a special license shall be reduced by the fair market value of the limitation on transferability, as set forth in subsection g. of this section.
d. A special license issued pursuant to this section shall not be issued to any person who would not qualify as a plenary retail consumption licensee pursuant to Title 33 of the Revised Statutes and rules and regulations of the director.
e. A special license shall not be issued pursuant to this section unless the application is supported by a letter of consent from the original transferee. The decision by the original transferee to provide a letter of consent shall be based upon consideration of whether the proposed special license will advance the conversion, redevelopment, or revitalization of the project area in accordance with the original transferee's plan for the project area and based upon objective criteria established by the original transferee.
f. If the property upon which the special license will be sited is owned by the original transferee:
(1) the license shall be issued without being designated for a site or licensed premises and shall remain inactive until the property is transferred to a private individual or entity; and
(2) an application for renewal of an inactive special license issued in accordance paragraph (1) of this subsection shall not be approved by the issuing authority unless accompanied by a letter of consent from the original transferee.
g. A special license issued pursuant to this section shall not be transferred to any premises other than a premises located in the project area. A special license issued pursuant to this section shall not be transferred out of the issuing municipality.
h. Any increase in population in the host municipalities resulting from residential development in the project area 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. Pursuant to the
"Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), the
Director of the Division of Alcoholic Beverage Control, in consultation with
the authority, may promulgate regulations necessary to effectuate the
provisions of this act.
4. This act shall take effect on the first day of the seventh month after enactment, except the Director of the Division of Alcoholic Beverage Control may take any anticipatory administrative action in advance thereof as shall be necessary for the implementation of this act.
STATEMENT
This bill authorizes the issuance of additional alcoholic beverage licenses in a project area at which a federally owned or operated military installation is closed and transferred to a government entity for the purpose of conversion, redevelopment, or revitalization. The special licenses would allow the license holder to sell alcoholic beverages for consumption on the licensed premises. Specifically, the bill applies to federally owned or operated military installations which were closed or are scheduled for closure on or after May 13, 2005, and the control of which has been transferred to the State, a political subdivision, or a board, commission, authority, or agency established by the State.
Under the bill, each municipality located within a project area may, by ordinance or resolution, issue one special license to one or more individual corporations or other types of legal entities operating a hotel, restaurant, or bar. Following this issuance of a special licenses, a certain number of additional undesignated licenses would be available within the project area. The number of undesignated licenses made available would be equal to two times the number of municipalities within the project area. For example, the bill would permit the issuance of a total of nine licenses for use in connection with businesses operating within the boundaries of the Fort Monmouth revitalization plan.
The license's initial issuance fee would be based upon the average sales price of plenary retail consumption licenses in the issuing host municipalities during the five years preceding the bill's enactment. If less than three licenses have been sold in the municipality within the previous five years, the licensee would be required to obtain an appraisal, at the licensee's expense, to determine the appropriate fair market value of the license. The appraisal process would include an examination of previous transactions in the host municipality and reflect what a willing buyer would pay a willing seller for a plenary retail consumption license.
Under the bill, a license is to be issued without being designated for a site and remain inactive until the property upon which the license is to be sited is transferred from the government entity to a private entity. In addition, the bill prohibits the licenses from being transferred to a premises located outside of the boundaries of the issuing municipality or redevelopment area. The license holder would be prohibited from selling alcoholic beverages for consumption off the licensed premises.
Under current law, a municipality may issue one plenary retail consumption license (for bars and restaurants) for each 3,000 of its population. This bill provides that an increase in population resulting from residential development in a formerly federally owned or operated military installation would not be included in the calculation used to issue new licenses.
