SENATE BUDGET AND APPROPRIATIONS COMMITTEE
STATEMENT TO
[First Reprint]
SENATE, No. 3944
with committee amendments
STATE OF NEW JERSEY
DATED: FEBRUARY 3, 2025
The Senate Budget and Appropriations Committee reports
favorably and with committee amendments Senate Bill No. 3944 (1R).
As amended, this bill clarifies that holders of plenary retail
consumption licenses for nonprofit art house movie theaters include
disregarded entities of certain nonprofit corporations. Specifically,
the 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. Under current law, a plenary retail consumption
license allows for the sale of alcoholic beverages for consumption on
the licensed premises.
In addition, the amended bill allows a municipality to issue a
plenary retail consumption license to an eligible business entity for use
in connection with certain “community theaters.” Under the bill, the
license holder would be entitled to sell alcoholic beverages for
consumption on the licensed premises only during the one hour
immediately preceding a performance and during performances,
including intermission. The bill defines “community theater” as 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.
Under the bill, the license may only be used in connection with a
community theater in which the space or spaces within a premises
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;
of motion pictures contain no more than three movie screens
with viewer seating areas having a total seating capacity of at
least 50 persons but not more than 600 persons; or 2
having a total seating capacity of at least 50 persons but not
more than 1,500 persons, containing at least one but not more
than three movie screens for showing motion pictures, and
containing 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 are to constitute at least 25 percent of the total seating
capacity.
COMMITTEE AMENDMENTS
The committee amended the bill to:
(1) remove from the bill provisions allowing a county or
municipality to hold a plenary retail consumption license for use in
connection with a premises which regularly operates as an art-house
movie theater or conducts musical or theatrical performances or
concerts for which admission is charged;
(2) revise the seating requirements and qualifications for which a
community theater would be eligible to receive a plenary retail
consumption license; and
(3) establish definitions for the terms, “eligible business entity,”
“performance,” “licensed premises,” and “community theater.”
FISCAL IMPACT:
This bill is not certified as requiring a fiscal note.