New Jersey-2024-A3906-Amended

An Act concerning alcoholic beverage licensing and amending P.L.2018, c.101 ¹and P.L.2023, c.290¹.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. Section 1 of P.L.2018, c.101 (C.33:1-12.52) is amended to read as follows:

1. a. 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 located within the borders of three municipalities and 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 this section.

b. Notwithstanding the provisions of section 2 of P.L.1947, c.94 (C.33:1-12.14), at the request of the original transferee, the issuing authority of a host municipality located within a project area may, by ordinance or resolution, issue special licenses 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 subsection a. of this section. [The special licenses may be issued within 36 months following the effective date of this act.]

The special licenses shall be issued by the three host municipalities in the following manner:

(1) The host municipality with the largest population shall issue two licenses;

(2) The host municipality with the smallest population shall issue ¹[four licenses] one license¹ ; and

(3) the remaining host municipality shall issue ¹[six] five¹ licenses.

c. Notwithstanding the provisions of any other law to the contrary, a special license shall be provided for every 100 acres of the project area with 12 special licenses for a project area over 1,000 acres.

d. ¹[A host municipality that has not issued a license pursuant to subsection b. of this section [as of the first day of the 37th month following the effective date of this act,] may [have up to two years to] transfer the license, for a fee, to another host municipality for issuance within a premises located within a project area. The fee shall be based upon the average sales price of a plenary retail consumption license in the receiving host municipality.] (Deleted by amendment, P.L. , c. ) (pending before the Legislature as this bill)¹

e. 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.2018, c.101 (C.33:1-12.52 et seq.). If less than three plenary retail consumption licenses have been sold in the host municipality within the previous five years, the host municipality 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.

f. 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.

g. (1) 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.

(2) A special license issued pursuant to this section shall not be issued to any entity under subsection b. of this section that has not completed the mandatory conceptual review process, when applicable, established pursuant to subsection b. of section 17 of P.L.2010, c.51 (C.52:27I-34) and the regulations issued in accordance therewith.

h. 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 with paragraph (1) of this subsection shall not be approved by the issuing authority unless accompanied by a letter of consent from the original transferee.

i. A special license issued pursuant to this section shall not be transferred to any premises other than a premises located in the project area until the dissolution of the authority overseeing, administering, and implementing the plan for the project area. Following the dissolution of the authority overseeing administering, and implementing the plan for the project area, the special licenses issued pursuant to this section may be used in connection with any premises located within the host municipality. A special license issued pursuant to this section shall not be transferred out of the issuing municipality except as provided in subsection d. of this section.

j. 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).

(cf: P.L.2018, c.101, s.1)

¹2. Section 3 of P.L.2018, c.101 (C.33:1-12.54) is amended to read as follows:

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 may promulgate regulations necessary to effectuate the provisions of P.L.2018, c.101 (C.33:1-12.52 et seq.) and P.L. , c. (pending before the Legislature as this bill).¹

(cf: P.L.2018, c.101, s.3)

¹3. Section 6 of P.L.2023, c.290 (C:33:1-12.55) is amended to read as follows:

6. (New section) a. As used in this section:

"Eligible municipality" means a municipality in which at least one shopping mall is located and the number of plenary retail consumption licenses has reached the population limitation established in section 2 of P.L.1947, c.94 (C.33:1-12.14).

"Enforcing agency" means the enforcing agency in any municipality designated to administer and enforce the "State Uniform Construction Code Act" pursuant to section 8 of P.L.1975, c.217 (C. 52:27D-126), and regulations promulgated thereunder.

"Shopping mall" means a standalone, publicly accessible enclosed walkway or hall area that serves to connect retail, entertainment, and food and beverage establishments, and office space and:

(1) that is under common ownership or control and connects with or provides access to separate retail establishments, including at least one restaurant or other establishment that serves alcoholic beverages pursuant to a plenary retail consumption license; and

(2) was constructed prior to the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill) or for which an application for a construction permit has been declared complete by an enforcing agency prior to the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill).

"Strip mall" means a retail shopping complex that consists of stores, restaurants, or other businesses in adjacent spaces or storefronts in one or more buildings that are connected by a doorway or open onto a common parking lot or outdoor pedestrian walkway.

b. The governing body of an eligible municipality may, by ordinance or resolution, issue within the municipality not more than:

(1) two special licenses to a person or other legal entity for use in connection with a food and beverage establishment located within a shopping mall with a minimum gross square footage of not less than 750,000; and

(2) four special licenses to a person or other legal entity for use in connection with a food and beverage establishment located within a shopping mall with a gross square footage of 1,500,000 or more.

c. A special license issued pursuant to subsection b. of this section shall authorize the sale of alcoholic beverages for immediate consumption on the operator's premises.

d. A person who would fail to qualify as a licensee under Title 33 of the Revised Statutes shall not be permitted to hold an interest in a special license under the provisions of this section.

e. Licenses shall be subject to all the provisions of Title 33 of the Revised Statutes, rules and regulations promulgated by the director, and municipal ordinances.

f. A special license issued pursuant to this section shall not be transferred for use in connection with any premises other than a premises that is operated as a food and beverage establishment located within the same shopping mall.

g. Application for the initial issuance and renewal of each license shall be made to the municipal governing body on an annual basis. The fee for the initial issuance of the license shall be at least $250,000.

One half of the initial issuance fee for the license shall be paid upon the issuance of the license and the other half of that amount shall be paid one year later. The governing body of the municipality shall establish an annual fee for the license which shall not exceed the fee which may be imposed by a municipality for a plenary retail consumption license pursuant to R.S.33:1-12. The fee for the initial issuance of the license shall be paid to the eligible municipality in which the license is issued.

h. If the individual corporation or entity holding the license determines to transfer a special license issued pursuant to this section, the license shall be sold for the sum paid pursuant to subsection g. of this section. A special license issued pursuant to this section shall not be transferred to the governing body of another municipality or for use in connection with any premises other than a premises that is operated as a food and beverage establishment located within a shopping mall.

i. [The director shall not issue a special concessionaire permit for any location or premises which is eligible to obtain a license to serve alcoholic beverages under the provisions of this section.] (Deleted by amendment, P.L. , c. ) (pending before the Legislature as this bill)

j. A special license issued pursuant to this section shall not be subject to the population limitation established pursuant to section 2 of P.L.1947, c.94 (C.33:1-12.14). An interest in a special license issued pursuant to this section shall be excluded in determining the maximum number of plenary retail consumption licenses issued to a person pursuant to P.L.1962, c.152 (C.33:1-12.31 et seq.).

k. The provisions of this section shall not apply to a strip mall as defined in subsection a. of this section.

l. Pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), the director may adopt rules and regulations to effectuate the purposes of this act.¹

(cf: P.L.2023, c.290, s.6)

¹[2.] 4.¹ This act shall take effect immediately.