New Jersey Senate Bill S3474

New Jersey 2022-2023 Regular Session

• Introduced: 1/12/23
• Refer: 1/12/23

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

Under existing laws, municipalities may issue new plenary retail consumption licenses but are limited based on their population. This bill modifies those regulations by permitting the transfer of inactive licenses to foster business growth in designated improvement areas. Municipalities will be allowed to collectively bid for these licenses, ensuring that they can secure licenses for use in their economic redevelopment projects. This could significantly impact local economies by facilitating new restaurant and bar establishments in areas that need revitalization while adhering to a structured transfer process that includes public sale provisions.

Summary

Senate Bill S3474, introduced in January 2023, allows municipalities in New Jersey to transfer inactive alcoholic beverage retail licenses to promote economic redevelopment and revitalization in specific areas. The proposed legislation provides a framework for transferring these licenses, particularly targeting usage in designated urban enterprise zones, downtown business improvement zones, and similar revitalization areas. The focus is on encouraging new business development through efficient use of alcohol licenses that have become inactive due to non-use over time.

Contention

The bill outlines specific conditions under which these inactive licenses may be transferred, including a requirement that the receiving establishment primarily sells food, must maintain a significant food sales ratio, and ensures that licenses that are not actively utilized within two years will expire. This stipulation aims to prevent potential misuse of the licenses for non-compliant operations. However, the bill might face contention from stakeholders who are concerned about the implications of such regulatory changes on existing businesses and local control over liquor licensing, particularly as it shifts focus toward facilitating new developments at the expense of current entities holding licenses.