New Jersey Assembly Bill A5127

New Jersey 2022-2023 Regular Session

• Introduced: 2/6/23
• Refer: 2/6/23

Caption

Allows municipalities to transfer inactive alcoholic beverage retail licenses for use in certain redevelopment and revitalization areas; establishes procedure to transfer inactive retail licenses.

Impact

The enactment of A5127 will modernize the existing alcoholic beverage licensing framework by enabling municipalities to better utilize inactive licenses. Currently, if a license has not been used for two consecutive terms, it is automatically set to expire. The bill alters this by facilitating the transfer of licenses to receiving municipalities, aiming to foster economic activity in areas that require revitalization. This direct impact could enhance local economies through new business ventures that align with redevelopment plans, potentially increasing tax revenue and local employment opportunities.

Summary

Assembly Bill A5127 allows municipalities in New Jersey to transfer inactive plenary retail consumption licenses as part of economic redevelopment plans specifically in designated revitalization areas. The bill provides a clear procedure for municipalities wishing to transfer such licenses, enabling them to utilize these licenses effectively in urban enterprise zones and other improvement districts. By transferring these inactive licenses rather than allowing them to expire, municipalities can promote business and economic growth in struggling areas, which is particularly essential for revitalizing towns that need such developments.

Sentiment

The sentiment around A5127 appears to be largely supportive among those advocating for economic redevelopment, particularly among local government officials and economic development advocates. Proponents argue that it provides a necessary mechanism to encourage growth in underdeveloped areas. However, concerns might arise regarding the regulations attached to the licenses, and whether the shift in license permissions may open avenues for misuse or reduced local control over alcohol-related businesses.

Contention

Notable points of contention could arise around the specifics of the licensing process and its administrative burdens. The requirement for sending and receiving municipalities to adopt identical resolutions and submit notices of intent to transfer licenses at least 90 days prior could pose challenges for speedy implementation. Additionally, the provision that licenses should primarily be used for food-related establishments may limit the potential scope of use for new businesses, sparking debate about the balance between regulation and economic freedom.