ASSEMBLY, No. 5125 STATE OF NEW JERSEY 221st LEGISLATURE INTRODUCED DECEMBER 12, 2024
ASSEMBLY, No. 5125
STATE OF NEW JERSEY
221st LEGISLATURE
INTRODUCED DECEMBER 12, 2024
Sponsored by: Assemblyman CLINTON CALABRESE District 36 (Bergen and Passaic) SYNOPSIS Provides that certain non-profit corporation alcoholic beverage theater licensees include disregarded entities of such corporations. CURRENT VERSION OF TEXT As introduced.
Sponsored by:
Assemblyman CLINTON CALABRESE
District 36 (Bergen and Passaic)
SYNOPSIS
Provides that certain non-profit corporation alcoholic beverage theater licensees include disregarded entities of such corporations.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning certain alcoholic beverage licenses and amending P.L.1985, c.151 and P.L.2019, c.466. Be It Enacted by the Senate and General Assembly of the State of New Jersey: 1. Section 1 of P.L.1985, c.151 (C.33:1-19.7) is amended to read as follows: 1. The governing board or body of any municipality, upon the approval of the Director of the Division of Alcoholic Beverage Control, may issue a plenary retail consumption license to a nonprofit corporation exempt from federal income tax under section 501(c)(3) of the Internal Revenue Code , including a disregarded entity of the corporation that is a single-member limited liability corporation disregarded for federal income tax purposes pursuant to 26 C.F.R. Part 301, which regularly operates as an art-house movie theater or conducts musical or theatrical performances or concerts for which admission is charged. A license issued pursuant to this section shall be used in connection with a premises with a seating capacity of 1,000 persons or more that is primarily used to conduct musical or theatrical performances or concerts. The license shall authorize the sale of alcoholic beverages by the nonprofit corporation or its restaurant operator who has been approved pursuant to procedures established by the Division of Alcoholic Beverage Control for consumption on the licensed premises: a. during the two hours immediately preceding performances; b. during performances, including intermission; and c. during the two hours immediately following performances. For the purposes of this section [,] : "Licensed premises" shall include the premises where the musical or theatrical performance or concert is held and any adjacent premises owned and operated by the licensee. "Art-house movie theater" means a theater that is principally used for the purpose of showing motion pictures and is operated by a nonprofit arts organization, which demonstrates a commitment to enriching its local community by providing opportunities for participation in the arts, offering arts education opportunities, and promoting regional economic prosperity. A license issued under the provisions of this section shall not be counted in determining the number of licenses under P.L.1947, c.94 (C.33:1-12.13 et seq.) or under P.L.1968, c.277 (C.40:48-2.40 et seq.). (cf: P.L.2023, c.104, s.2) 2. Section 2 of P.L.2019, c.466 (C.33:1-19.8) is amended to read as follows: 2. The governing board or body of any municipality, upon the approval of the Director of the Division of Alcoholic Beverage Control, may issue a plenary retail consumption license to a nonprofit corporation exempt from federal income tax under section 501(c)(3) of the Internal Revenue Code , including a disregarded entity of the corporation that is a single-member limited liability corporation disregarded for federal income tax purposes pursuant to 26 C.F.R. Part 301, which regularly operates as an art-house movie theater or conducts musical or theatrical performances or concerts for which admission is charged. A license issued pursuant to this section shall be used in connection with a premises with a seating capacity of 50 persons or more but less than 1,000 persons that is primarily used to conduct musical or theatrical performances or concerts. The license shall authorize the sale of alcoholic beverages by the nonprofit corporation or its restaurant operator who has been approved pursuant to procedures established by the Division of Alcoholic Beverage Control for consumption on the licensed premises: a. during the two hours immediately preceding performances; b. during performances, including intermission; and c. for not more than 15 performances in a calendar year, during the two hours immediately following performances. For the purposes of this section [, ] : "Licensed premises" shall include the premises where the musical or theatrical performance or concert is held and any adjacent premises owned and operated by the licensee. "Art-house movie theater" means a theater that is principally used for the purpose of showing motion pictures and is operated by a nonprofit arts organization, which demonstrates a commitment to enriching its local community by providing opportunities for participation in the arts, offering arts education opportunities, and promoting regional economic prosperity. A license issued under the provisions of this section shall not be counted in determining the number of licenses under P.L.1947, c.94 (C.33:1-12.13 et seq.) or under P.L.1968, c.277 (C.40:48-2.40 et seq.). (cf: P.L.2023, c.104, s.2) 3. This act shall take effect immediately. STATEMENT This bill clarifies that holders of plenary retail consumption licenses for nonprofit theaters include disregarded entities of certain nonprofit corporations. Under current law, a municipalities are authorized to issue special plenary retail consumption licenses, known as "theater licenses," to nonprofit corporations, exempt from federal income tax under section 501(c)(3) of the Internal Revenue Code that conduct musical or theatrical performances or concerts on the licensed premises. This bill clarifies that nonprofit corporations eligible for the license include "disregarded entities" that are single-member limited liability corporations disregarded for federal income tax purposes pursuant to 26 C.F.R. Part 301.
An Act concerning certain alcoholic beverage licenses and amending P.L.1985, c.151 and P.L.2019, c.466.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 1 of P.L.1985, c.151 (C.33:1-19.7) is amended to read as follows:
1. The governing board or body of any municipality, upon the approval of the Director of the Division of Alcoholic Beverage Control, may issue a plenary retail consumption license to a nonprofit corporation exempt from federal income tax under section 501(c)(3) of the Internal Revenue Code , including a disregarded entity of the corporation that is a single-member limited liability corporation disregarded for federal income tax purposes pursuant to 26 C.F.R. Part 301, which regularly operates as an art-house movie theater or conducts musical or theatrical performances or concerts for which admission is charged. A license issued pursuant to this section shall be used in connection with a premises with a seating capacity of 1,000 persons or more that is primarily used to conduct musical or theatrical performances or concerts.
The license shall authorize the sale of alcoholic beverages by the nonprofit corporation or its restaurant operator who has been approved pursuant to procedures established by the Division of Alcoholic Beverage Control for consumption on the licensed premises:
a. during the two hours immediately preceding performances;
b. during performances, including intermission; and
c. during the two hours immediately following performances.
For the purposes of this section [,] :
"Licensed premises" shall include the premises where the musical or theatrical performance or concert is held and any adjacent premises owned and operated by the licensee.
"Art-house movie theater" means a theater that is principally used for the purpose of showing motion pictures and is operated by a nonprofit arts organization, which demonstrates a commitment to enriching its local community by providing opportunities for participation in the arts, offering arts education opportunities, and promoting regional economic prosperity.
A license issued under the provisions of this section shall not be counted in determining the number of licenses under P.L.1947, c.94 (C.33:1-12.13 et seq.) or under P.L.1968, c.277 (C.40:48-2.40 et seq.).
(cf: P.L.2023, c.104, s.2)
2. Section 2 of P.L.2019, c.466 (C.33:1-19.8) is amended to read as follows:
2. The governing board or body of any municipality, upon the approval of the Director of the Division of Alcoholic Beverage Control, may issue a plenary retail consumption license to a nonprofit corporation exempt from federal income tax under section 501(c)(3) of the Internal Revenue Code , including a disregarded entity of the corporation that is a single-member limited liability corporation disregarded for federal income tax purposes pursuant to 26 C.F.R. Part 301, which regularly operates as an art-house movie theater or conducts musical or theatrical performances or concerts for which admission is charged. A license issued pursuant to this section shall be used in connection with a premises with a seating capacity of 50 persons or more but less than 1,000 persons that is primarily used to conduct musical or theatrical performances or concerts.
The license shall authorize the sale of alcoholic beverages by the nonprofit corporation or its restaurant operator who has been approved pursuant to procedures established by the Division of Alcoholic Beverage Control for consumption on the licensed premises:
a. during the two hours immediately preceding performances;
b. during performances, including intermission; and
c. for not more than 15 performances in a calendar year, during the two hours immediately following performances.
For the purposes of this section [, ] :
"Licensed premises" shall include the premises where the musical or theatrical performance or concert is held and any adjacent premises owned and operated by the licensee.
"Art-house movie theater" means a theater that is principally used for the purpose of showing motion pictures and is operated by a nonprofit arts organization, which demonstrates a commitment to enriching its local community by providing opportunities for participation in the arts, offering arts education opportunities, and promoting regional economic prosperity.
A license issued under the provisions of this section shall not be counted in determining the number of licenses under P.L.1947, c.94 (C.33:1-12.13 et seq.) or under P.L.1968, c.277 (C.40:48-2.40 et seq.).
(cf: P.L.2023, c.104, s.2)
3. This act shall take effect immediately.
STATEMENT
This bill clarifies that holders of plenary retail consumption licenses for nonprofit theaters include disregarded entities of certain nonprofit corporations.
Under current law, a municipalities are authorized to issue special plenary retail consumption licenses, known as "theater licenses," to nonprofit corporations, exempt from federal income tax under section 501(c)(3) of the Internal Revenue Code that conduct musical or theatrical performances or concerts on the licensed premises. This bill clarifies that nonprofit corporations eligible for the license include "disregarded entities" that are single-member limited liability corporations disregarded for federal income tax purposes pursuant to 26 C.F.R. Part 301.