This bill allows for-profit movie theaters to obtain a plenary retail consumption license, enabling them to sell alcoholic beverages. Municipal governing bodies, with the approval of the Director of the Division of Alcoholic Beverage Control, can issue these licenses specifically for facilities that primarily show first-run motion pictures. The license permits the sale of alcohol two hours before and during the showing of these films. The application process for obtaining and renewing the license is annual, with an initial fee set at a minimum of $210,000, which can be reduced to $150,000 if a certain percentage of the beverages sold are produced by local breweries and wineries.

Additionally, the bill stipulates that the license cannot be transferred to any premises other than those operated as a motion picture exhibition facility. It also clarifies that licenses issued under this new provision will not count against the existing limits on the number of retail consumption licenses a municipality can issue based on its population. This legislation aims to support the struggling movie theater industry by allowing them to diversify their revenue through alcohol sales, thereby enhancing their financial viability in a competitive market increasingly influenced by streaming services. It also seeks to promote local craft alcohol production and stimulate economic activity in surrounding areas.