Bill Text: NJ A2370 | 2024-2025 | Regular Session | Introduced
Bill Title: Allows municipalities to revoke and reissue plenary retail consumption licenses that are inactive for five years.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced) 2024-01-09 - Introduced, Referred to Assembly Oversight, Reform and Federal Relations Committee [A2370 Detail]
Download: New_Jersey-2024-A2370-Introduced.html
STATE OF NEW JERSEY
221st LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2024 SESSION
Sponsored by:
Assemblyman WILLIAM W. SPEARMAN
District 5 (Camden and Gloucester)
SYNOPSIS
Allows municipalities to revoke and reissue plenary retail consumption licenses that are inactive for five years.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel.
An Act concerning inactive plenary retail consumption licenses, amending P.L.1977, c.246, and repealing section 3 of P.L.2007, c.351.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 1 of P.L.1977, c.246 (C.33:1-12.39) is amended to read as follows:
1. [No] a. 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] five 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 the] .
b. The issuing authority of a municipality may revoke a license that has not been actively used within the five year period pursuant to subsection a. of this section and reissue the license to another person at public sale in a manner consistent with the provisions of P.L.1975, c.275 (C.33:1-19.1 et seq.) for use at a licensed premises located within the municipality. The use of any plenary retail consumption license issued pursuant to this subsection shall be in a manner consistent with the provisions of Title 33 of the Revised Statutes and any regulations promulgated by the director.
c. A license shall not be revoked pursuant to 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] premises. An affidavit for relief filed pursuant to this subsection may be renewed by the director every two years. Any request for relief under this section shall be accompanied by a nonreturnable filing fee of $100.00 payable to the director.
(cf: P.L.1996, c.127, s.1)
2. Section 3 of P.L.2007, c.351 (C.33:1-24.3) is repealed.
3. This act shall take
effect immediately.
STATEMENT
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.
