| 57 | | - | An Act concerning certain alcoholic beverage licenses 1[and] ,1 amending P.L.1985, c.151 and P.L.2019, c.466 1, and supplementing Title 33 of the Revised Statutes1. 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 [,] : 1"Performance" shall include the showing of any motion picture, musical concert, theatrical play, dance recital, literature reading or other artistic or cultural exhibition.1 "Licensed premises" shall include the premises where the 1[musical or theatrical]1 performance 1[or concert]1 is held and any adjacent premises 1[owned and]1 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 1[,]1 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 [,] : 1"Performance" shall include the showing of any motion picture, musical concert, theatrical play, dance recital, literature reading or other artistic or cultural exhibition.1 "Licensed premises" shall include the premises where the 1[musical or theatrical]1 performance 1[or concert]1 is held and any adjacent premises 1[owned and]1 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 1[,]1 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) 13. a. 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 an eligible business entity operating as a community theater for which admission is charged, and for which the premises meet the standards required in subsection b. of this section. b. A license issued pursuant to this section shall be used only in connection with a premises in which: (1) the space or spaces within the premises that are used for showing performances of musical concerts, theatrical plays, dance recitals, literature readings or other artistic or cultural exhibitions contain one or more stages with viewer seating areas having a total seating capacity of at least 50 persons but not more than 1,000 persons and do not contain any movie screens for showing performances of motion pictures; or (2) the space or spaces within the premises that are used for showing performances of motion pictures contain no more than five movie screens with viewer seating areas having a total seating capacity of at least 50 persons but not more than 600 persons; or (3) the space or spaces within the premises that are used for showing performances have a total seating capacity of at least 50 persons but not more than 1,500 persons, contain at least one but not more than five movie screens for showing motion pictures, and contain at least one stage for showing musical concerts, theatrical plays, dance recitals, literature readings or other artistic or cultural exhibitions. The seating capacity of the viewer seating areas located in the space or spaces with a stage or stages shall constitute at least 25% of the total seating capacity. c. The license shall authorize the sale of alcoholic beverages by the eligible business entity who has been approved pursuant to procedures established by the Division of Alcoholic Beverage Control for consumption on the licensed premises only during the one hour immediately preceding a performance and during performances, including intermission. d. For the purposes of this section: "Performance" shall include the showing of any motion picture, musical concert, theatrical play, dance recital, literature reading or other artistic or cultural exhibition. "Licensed premises" shall include the premises where the performance is held and any adjacent premises operated by the licensee. "Eligible business entity" shall include any corporation, company, partnership, sole proprietorship or person, including any person or entity owning 10% or more of the shares thereof, that: (1) is not listed or traded on a stock exchange; and (2) is not owned, or partially owned, by a corporation or other entity listed or traded on a stock exchange; and (3) does not own, or partially own, any other plenary retail consumption license issued by the Division of Alcoholic Beverage Control; and (4) does not include as a shareholder a person or entity that owns 10% or more of the shares of the eligible business entity and that owns, or partially owns, any other plenary retail consumption license issued by the Division of Alcoholic Beverage Control. "Community theater" shall mean a theater that is used for the purpose of showing performances of motion pictures, musical concerts, theatrical plays, dance recitals, literature readings or other artistic or cultural exhibitions and is owned and operated by an eligible business entity. e. 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.).1 1[3.] 4.1 This act shall take effect immediately. |
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| 45 | + | 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. |
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