Rutgers Law

New Jersey Statutes, Title: 33, INTOXICATING LIQUORS

    Chapter 1:

      Section: 33:1-24.3a: Definitions; receiving municipality, plenary retail consumption licenses, population limitation, request, additional inactive plenary retail consumpti

          3. a. As used in this act:

"Contiguous" means when municipalities in this State are adjoined by land and share a common boundary line, but does not include municipalities that are separated solely by a river, lake, bay, or other body of water.

"Inactive license" means a plenary retail consumption license that has been placed on inactive status and renewed as authorized by the provisions of section 1 of P.L.1977, c.246 (C.33:1-12.39) for two consecutive license terms.

"Receiving municipality" means a municipality that enters into an agreement to acquire an inactive plenary retail consumption license from a contiguous sending municipality as part of an economic redevelopment plan or in connection with a premises located within a redevelopment, improvement, or revitalization area pursuant to P.L.2023, c.290 (C.33:1-10b et al.).

"Redevelopment, improvement, or revitalization area" means an urban enterprise zone designated pursuant to P.L.1983, c.303 (C.52:27H-60 et seq.) or P.L.2001, c.347 (C.52:27H-66.2 et al.); a downtown business improvement zone designated pursuant to P.L.1998, c.115 (C.40:56-71.1 et seq.); a pedestrian mall or pedestrian mall improvement or special improvement district as defined in section 2 of P.L.1972, c.134 (C.40:56-66); a transit oriented development as defined by section 2 of P.L.2011, c.149 (C.34:1B-243); an area determined to be in need of redevelopment pursuant to sections 5 and 6 of P.L.1992, c.79 (C.40A:12A-5 and 40A:12A-6); or an area determined to be in need of rehabilitation pursuant to section 14 of P.L.1992, c.79 (C.40A:12A-14), or any improvement which is 100 percent new construction, which is an entirely new improvement not previously occupied or used for any purpose.

"Sending municipality" means a municipality from which an inactive license is issued pursuant to P.L.2023, c.290 (C.33:1-10b et al.) to the governing body of a contiguous receiving municipality as part of an economic redevelopment plan or in connection with a premises located within a redevelopment, improvement, or revitalization area.

b. A receiving municipality in which the number of plenary retail consumption licenses has reached the population limitation established in section 2 of P.L.1947, c.94 (C.33:1-12.14) may issue a request for proposal to acquire from a license holder an additional inactive plenary retail consumption license that was initially issued by a contiguous sending municipality. The inactive license acquired pursuant to this section shall be used in connection with a premises as part of an economic redevelopment plan or a redevelopment, improvement, or revitalization area. A sending municipality shall not be entitled to transfer a license pursuant to this section unless the sending municipality and receiving municipality are contiguously located.

c. The request for proposal issued pursuant to subsection b. of this section shall specify a time and date after which no further applications from license holders will be accepted. The request shall be published in a newspaper circulating generally throughout the State by not less than two insertions, one week apart, the second of which shall be made not less than 30 days prior to the time and date specified in the notice as the time and date after which no further applications will be accepted. In addition, the request for proposal shall be published by the governing body on the official Internet website of the receiving municipality. The request for proposal shall require that all bids be sealed and remain confidential to other bidders. Notwithstanding the provisions of section 1 of P.L.1981, c. 416 (C.33:1-19.3) the license shall be awarded to the highest qualified bidder.

The request for proposal shall establish a minimum bid amount, which shall be based on the average sale price of the three most recent plenary retail consumption license sales in the receiving municipality or an appraisal completed pursuant to this subsection at the receiving municipality's expense, whichever amount is greater.

The appraisal process shall include an examination of previous transactions in the receiving municipality or surrounding municipalities, as the case may be, and shall reflect what a willing buyer, under no pressure to buy, would pay a willing seller, under no pressure to sell, for a plenary retail consumption license in that municipality or municipalities, as the case may be.

d. The holder of an inactive plenary retail consumption license shall apply to the governing body of the sending municipality for permission to transfer the inactive plenary retail consumption license from the sending municipality prior to the submission of bids in response to the request for proposal. The governing body of the sending municipality may approve the application only by a resolution adopted by a majority vote. The sending municipality shall not require the applicant to disclose the location of the proposed licensed premises.

After the receiving municipality accepts a successful bid, the sending municipality shall submit to the director notice of the intent to transfer a license at least 90 days prior to the transfer. The sending and receiving municipalities shall adopt by majority vote identical resolutions authorizing the transfer of the license. The identical resolutions shall establish the license transfer fee of $25,000 or more, which shall be paid by the license holder and deposited in the general fund of the sending municipality. Prior to adopting the resolution pursuant to this section, the governing body of both municipalities shall give special consideration as to whether sufficient attempts were made by the license holder to use or transfer the license for use in connection with a premises located in the sending municipality.

e. A receiving municipality that acquires a license pursuant to subsection b. of this section shall be entitled to offer the license at public sale pursuant to P.L.1975, c.275 (C.33:1-19.1 et seq.). A license issued by the receiving municipality to a qualified bidder that is not actively used in connection with the operation of a premises within two years of the issuance date shall expire and shall not be reissued by the receiving municipality. The license holder shall not be entitled to appeal the expiration of the license to the director or a court of law unless the license holder has been deprived of the use of the licensed premises as a result of eminent domain, fire, or other casualty, and establishes by affidavit filed with the director that the license holder is making a good faith effort to resume active use of the license in connection with the operation of a licensed premises.

f. A receiving municipality shall be entitled to acquire one inactive license pursuant to this section in each calendar year but not more than two inactive licenses in five calendar years.

g. A plenary retail consumption license transferred pursuant to this section shall entitle the license holder to sell alcoholic beverages for consumption on the licensed premises, but not for consumption off the licensed premises. Licenses transferred pursuant to this section shall otherwise be subject to all the provisions of Title 33 of the Revised Statutes, rules and regulations promulgated by the director, and municipal ordinances.

h. A license issued pursuant to this section shall not be included in the total combined population necessary to issue a new plenary retail consumption or seasonal retail consumption license pursuant to section 2 of P.L.1947, c.94 (C.33:1-12.14).

L.2023, c.290, s.3.

This section added to the Rutgers Database: 2024-06-14 13:54:30.

Older versions of 33:1-24.3a (if available):

Court decisions that cite this statute: CLICK HERE.