This bill establishes a framework for the transfer of plenary retail consumption licenses, typically held by bars and restaurants, when land is annexed from one municipality to another. Specifically, it mandates that any such license associated with a premises on annexed land be transferred to the governing body of the municipality that annexes the land. Additionally, the bill allows the municipality losing land to issue a new plenary retail consumption license at public sale to replace the one that was transferred.

Importantly, the bill also stipulates that the existing population limitation, which restricts the issuance of new licenses to one for every 3,000 residents, will not apply to licenses transferred or issued under this new provision. This change aims to facilitate the smooth transition of licenses during municipal land annexations and ensure that affected municipalities can maintain their retail alcohol service capabilities. The act is set to take effect immediately upon passage.