STATE OF NEW JERSEY
221st LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2024 SESSION
Sponsored by:
Assemblyman CRAIG J. COUGHLIN
District 19 (Middlesex)
Co-Sponsored by:
Assemblyman S.Kean
SYNOPSIS
Provides for transfer and sale of inactive liquor licenses for use in qualifying smart growth municipalities.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel.
An Act concerning the transfer of alcoholic beverage licenses to qualifying smart growth municipalities, supplementing Title 33 of the Revised Statues, and amending and repealing parts of P.L.2007, c.351.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. (New section) The Legislature finds and declares that:
a. Smart growth is an innovative approach to land use planning that directs the States resources and funding to projects that enhance the quality of life for New Jersey residents;
b. Smart growth encourages the development of distinctive, attractive communities with mixed use development, walkable town centers and neighborhoods, a range of housing options, and a variety of transportation modes;
c. Small businesses, including restaurants and other establishments that serve alcoholic beverages, enhance the economic viability of a smart growth community and the quality of life for residents and visitors;
d. Under current law, a municipality may not issue a new plenary retail consumption license unless and until the combined total number of such licenses existing in the municipality is fewer than one for each 3,000 of its population according to the most recent estimates issued by the U.S. Bureau of the Census, and liquor licenses issued in one municipality may not be transferred to another municipality;
e. As a result of these restrictions, there is an insufficient number or complete lack of available plenary retail consumption licenses in many smart growth communities where real estate development projects including restaurants have been proposed; at the same time, there are numerous other municipalities that have a surplus of inactive plenary retail consumption licenses in excess of any foreseeable demand for those licenses.
f. In order to foster and encourage development in smart growth communities in which there is an insufficient number or complete lack of available plenary retail consumption licenses, it is appropriate to create a method for the sale and transfer of inactive plenary retail consumption licenses existing in those communities having a surplus of inactive licenses to purchasers who will activate and utilize such licenses in smart growth communities, and to provide financial compensation to the municipalities from which such licenses are transferred.
2. (New section) a. As used in this act:
Green building conversion redevelopment project means any redevelopment project that includes the conversion of not less than 150,000 square feet of existing office or other commercial premises, that is vacant or functionally obsolete and at least 35 years old, into Class A office or other commercial premises satisfying the requirements for the Leadership in Energy and Environmental Design Green Building Rating System as adopted by the United States Green Building Council.
Inactive license means a plenary retail consumption license that has been renewed as authorized by the provisions of R.S.33:1-12.39 for more than three license terms and for which the holder of the license certifies that he has not received any viable, reasonable, or acceptable offers to purchase and no location at which to activate the license within the issuing municipality.
Qualifying smart growth municipality means a municipality that:
(1) is located in a smart growth area; and
(2) is not authorized to issue any new plenary retail consumption licenses because of the limitation on the number of plenary retail consumption licenses in section 2 of P.L.1947, c.94 (C33:1-12.14), excluding plenary retail consumption licenses transferred pursuant to this act; or
(3) is unable to issue a sufficient number of new plenary retail consumption licenses to satisfy the anticipated demand for plenary retail consumption licenses to be utilized within a real estate development project, as determined by the director pursuant to subsection c. of this section.
Real estate development project means any building or complex of buildings, whether or not under common ownership or control, which is the subject of a common redevelopment plan, site plan, general development plan, or other land use plan approved by the qualifying smart growth municipality in which it is located.
Sending municipality means a municipality that has one or more inactive plenary retail consumption licenses.
Smart growth area means a Planning Area 1 (Metropolitan), Planning Area 2 (Suburban), or a designated center or designated growth center in an endorsed plan; a smart growth area and planning area designated in a master plan adopted by the New Jersey Meadowlands Commission pursuant to subsection (i) of section 6 of P.L.1968, c.404 (C.13:17-6); a growth area designated in the comprehensive management plan adopted pursuant to section 7 of the Pinelands Protection Act, P.L.1979, c.111 (C.13:18A-8); any area designated for growth in the Highlands regional master plan adopted by the Highlands Water Protection and Planning Council pursuant to P.L.2004, c.120 (C.13:20-1 et al.); a transit village; an urban enterprise zone designated pursuant to P.L.1983, c.303 (C.52:27H-60 et seq.) or P.L.2001, c.347 (C.52:27H-66.2 et al.); an area determined to be in need of redevelopment or rehabilitation pursuant to P.L.1992, c.79 (C.40A:12A-1 et al.) and as approved by the Department of Community Affairs; any area on which a green building conversion redevelopment project is located; and federally owned land approved for closure under a federal Base Realignment Closing Commission action.
b. An inactive license which has been issued by a sending municipality may, in accordance with the procedures established in this act, be purchased by:
(1) a corporation or other legal entity operating or intending to operate a restaurant or other establishment that serves alcoholic beverages in a qualifying smart growth municipality; or
(2) the owner of a real estate development project in a qualifying smart growth municipality, provided that such inactive license shall subsequently be transferred to an entity operating or intending to operate a restaurant or other establishment that serves alcoholic beverages in the real estate development project.
c. The director shall determine whether an inactive license may be transferred pursuant to the provisions of this act to a qualifying smart growth municipality. The director shall approve the transfer if the director determines that a municipality is unable to issue a sufficient number of new plenary retail consumption licenses to satisfy the anticipated demand for licenses to be utilized within a real estate development project because of the limitation on the number of plenary retail consumption licenses in section 2 of P.L.1947, c.94 (C.33:1-12.14), excluding plenary retail consumption licenses transferred pursuant to this act.
d. The purchaser and the holder of the inactive license shall enter into a contract for the sale of the license, which shall be a private transaction. Upon the signing of a contract to purchase an inactive license and utilize the license as authorized under the provisions of this act, the seller of the inactive license shall obtain resolutions adopted by the issuing authorities of the sending municipality and the qualifying smart growth municipality. The resolutio