New Jersey Assembly Bill A2370

New Jersey 2024-2025 Regular Session

• Introduced: 1/9/24
• Refer: 1/9/24

Caption

Allows municipalities to revoke and reissue plenary retail consumption licenses that are inactive for five years.

Impact

The bill's main impact is that it will facilitate a more efficient use of alcohol licenses, potentially increasing competition and availability of liquor licenses for new businesses. Cities will have the authority to manage their local economies better by making licenses available for new ventures, thus aiding economic development. The revocation process is protective of existing licensees, as those who have seen their businesses impacted by factors like eminent domain or casualty can still file affidavits to maintain their licenses longer, ensuring fairness in transition.

Summary

Assembly Bill A2370 permits municipalities in New Jersey to revoke plenary retail consumption licenses that have not been actively used for five years and reissue them through a public sale. This bill aims to address the issue of inactive licenses, which can tie up valuable resources and limit local market opportunities. Under existing state law, municipalities were limited in their ability to revoke these licenses, only able to renew inactive licenses annually for up to two years before the licensee had to petition for an extension. A2370 simplifies this process by allowing immediate revocation after five years of inactivity, encouraging a more dynamic licensing environment.

Contention

A notable point of contention could arise from local business owners who may rely on maintaining their licenses, as revoking licenses may be seen as punitive by some in the industry. The repeal of certain provisions from previous legislation (P.L.2007, c.351) that restricted the sale of inactive licenses to select municipalities may generate debate over equity and accessibility to licenses across different regions. Advocates for small businesses might argue that more clarification is needed on protections for existing license holders in light of these changes.