New Jersey Assembly Bill A632

New Jersey 2022-2023 Regular Session

• Introduced: 1/11/22
• Refer: 1/11/22

Caption

Provides for transfer and sale of inactive liquor licenses for use in qualifying smart growth municipalities.

Impact

The implementation of A632 will impact state laws related to the management and distribution of alcohol licenses. Currently, many municipalities face restrictions that prevent them from issuing new retail consumption licenses unless they have fewer than one license for every 3,000 residents. This bill creates provisions under which inactive licenses from municipalities with a surplus can be sold to qualifying smart growth municipalities that are unable to issue sufficient new licenses. Essentially, it aims to alleviate the shortages of licenses in rapidly developing areas while providing monetary compensation to the sending municipalities through the established fee structure.

Summary

Assembly Bill A632 is designed to facilitate the transfer and sale of inactive plenary retail consumption licenses specifically for use in qualifying smart growth municipalities. The bill addresses the issues surrounding the limited number of available retail consumption licenses in certain areas, particularly where significant real estate development plans are under consideration. By enabling the transfer of inactive licenses, the bill seeks to stimulate economic activity and support local businesses, especially restaurants, within these designated smart growth communities.

Contention

While the bill has garnered support by emphasizing its potential for boosting local economies and promoting smart growth, it also invites contention. Critics may raise concerns regarding the local control of alcohol licenses, as transferring licenses from one municipality to another could undermine local regulatory authority. Moreover, the financial arrangements tied to the transfer fees and the administrative burdens placed on municipalities could also spark debate regarding the fairness and effectiveness of these measures in fostering equitable growth.