ASSEMBLY, No. 3991

STATE OF NEW JERSEY

215th LEGISLATURE

 

INTRODUCED APRIL 4, 2013

 


 

Sponsored by:

Assemblyman  JOHN J. BURZICHELLI

District 3 (Cumberland, Gloucester and Salem)

Assemblyman  ALBERT COUTINHO

District 29 (Essex)

 

 

 

 

SYNOPSIS

     Authorizes issuance of special licenses to serve and distribute alcoholic beverages in smart growth areas.

 

CURRENT VERSION OF TEXT

     As introduced.

  


An Act concerning the issuance of special plenary retail consumption and distribution licenses, and amending P.L.2007, c.351 and R.S.33:1-76.

 

     Be It Enacted by the Senate and General Assembly of the State of New Jersey:

 

     1.  Section 1 of P.L.2007, c.351 (C.33:1-24.1) is amended to read as follows:

     1.  The Legislature finds and declares that:

     a.  Smart growth is an innovative approach to land use planning that directs the State's resources and funding to projects that enhance the quality of life for New Jersey residents;

     b.  Smart growth encourages the development of distinctive, attractive communities with mixed use development, walkable town centers and neighborhoods, a range of housing options, and a variety of transportation modes;

     c.  Small businesses, including restaurants and other establishments that serve alcoholic beverages, enhance the economic viability of a smart growth community and the quality of life for residents and visitors;

     d.  Many municipalities in New Jersey do not have a sufficient number of liquor licenses for all the establishments that wish to serve and distribute alcoholic beverages to patrons; and

     e.  In order to foster and encourage development in smart growth communities, it is appropriate to create special licenses to serve and distribute alcoholic beverages for establishments located in smart growth projects [and to provide financial compensation to alcoholic beverage licensees in those communities who already have established businesses and paid market value for their licenses].

(cf:  P.L.2007, c.351, s.1)

 

     2.  Section 2 of P.L.2007, c.351 (C.33:1-24.2) is amended to read as follows:

     2. a. As used in this act:

      “Private investment” means the costs expected to be incurred in connection with a smart growth development project by the developer and the landlords, tenants, or other business occupants that may be part of the project until the issuance of a permanent certificate of occupancy for the last premises or phase of such project including, without limitation, the cost of any off-site infrastructure improvements.

      “Smart growth area” means any area designated pursuant to P.L.1985, c.398 (C.52:18A-196 et seq.) as Planning Area 1 (Metropolitan), Planning Area 2 (Suburban), Planning Area 3 (Fringe
Planning Area), or Planning Area 4A (Rural Planning Area), a designated center, or a designated growth center in an endorsed plan until June 30, 2013, or until the State Planning Commission revises and readopts New Jersey’s State Strategic Plan and adopts regulations to refine this definition as it pertains to Statewide planning areas, whichever is later; a smart growth area and planning area designated in a master plan adopted by the New Jersey Meadowlands Commission pursuant to subsection (i) of section 6 of P.L.1968, c.404 (C.13:17-6); regional growth areas, villages, and towns, designated in the comprehensive management plan prepared and adopted by the Pinelands Commission pursuant to section 7 of the "Pinelands Protection Act," P.L.1979, c.111 (C.13:18A-8); the planning area of the Highlands Region as defined in section 3 of the "Highlands Water Protection and Planning Act," P.L.2004, c.120 (C.13:20-3), and any Highlands center designated by the Highlands Water Protection and Planning Council, established pursuant to section 4 of P.L.2004, c.120 (C.13:20-4); 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.); 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) as approved by the Department of Community Affairs; or similar areas designated by the Department of Environmental Protection. “Smart growth area” shall not include an area designated pursuant to the State Development and Redevelopment Plan adopted, as of the effective date of P.L.2008, c.78 (C.40:55D-136.1 et seq.), pursuant to P.L.1985, c.398 (C.52:18A-196 et seq.) as Planning Area 4B (Rural/Environmentally Sensitive) or Planning Area 5 (Environmentally Sensitive), except for any area within Planning Area 4B or Planning Area 5 that is a designated center, or a designated growth center in an endorsed plan.

     "Smart growth development project" or "project" means a development project that:

     (1) Is located in a smart growth area [as defined in section 1 of P.L.2004, c.89 (C.52:27D-10.2); is expected to generate, directly or indirectly, at least $50 million of private investments and more than $25 million annually in new sales and use tax revenue; and consists of at least five acres of land under the control of a developer; or]; and

     (2) Is expected to increase [the] , in the judgment of the chief financial officer of the municipality in which the project is located, the aggregate value of all taxable property [in a municipality] assessed which is located within the project at the time of completion of the project, by not less than [40%] 100% over the aggregate value of [that property for the previous tax year as shown in column six of the abstract of ratables] all taxable property assessed which is located within the project as of October 1st of the year preceding the year in which private investments in the project are commenced.

     b. [The] (1) With respect to a smart growth development project that is expected to generate, directly or indirectly, in the judgment of the chief financial officer of the municipality in which the project is located, not less than $20 million in private investments, the Director of the Division of Alcoholic Beverage Control[, upon approval of the municipality, may] shall issue one or more special retail consumption licenses to one or more individual corporations or other types of legal entities operating a [premises where alcoholic beverages are intended to be served that is located in a smart growth development project.  The license] hotel, restaurant or bar, including any restaurant or bar operated within a cinema, arcade or other retail establishment, on any premises located in such project. The number of special retail consumption licenses that may be issued in a specific project shall be calculated by dividing the total square footage of improvements within the project by 25,000, not to exceed six licenses. Except as otherwise provided in this act, each special retail consumption license shall be governed by the provisions of R.S.33:1-12 with respect to plenary retail consumption licenses.

      (2) (a) With respect to a smart growth development project that is expected to generate, directly or indirectly, in the judgment of the chief financial officer of the municipality in which the project is located, not less than $10 million in private investments, the Director of the Division of Alcoholic Beverage Control shall issue one or more special retail consumption licenses to one or more individual corporations or other types of legal entities operating a hotel, restaurant or bar, including any restaurant or bar operated within a cinema, arcade or other retail establishment, on any premises located in such project. The number of special retail consumption licenses that may be issued in a specific project shall be calculated by dividing the total square footage of improvements within the project by 25,000, not to exceed three licenses.  Except as otherwise provided by this act, each special retail consumption license shall be governed by the provisions of R.S.33:1-12 with respect to plenary retail consumption licenses.

      (b)  With respect to a smart growth development project that is expected to generate, directly or indirectly, in the judgment of the chief financial officer of the municipality in which the project is located, not less than $10 million in private investments, the director shall issue one or more special retail distribution licenses to one or more individual corporations or other types of legal entities operating a retail business on any premises located in such project. The number of such special retail distribution licenses that may be issued in a specific project shall be calculated by dividing the total square footage of improvements within the project by 50,000, not to exceed three licenses. Except as otherwise provided by this act, each special retail distribution license shall be governed by the provisions of R.S.33:1-12 with respect to plenary retail distribution licenses.

      (3)  In addition to private investments expected to be generated, the private investments referred to in this section may expressly include private investments actually generated during the five year period immediately preceding the date on which an application is first made for the issuance of a license for the project pursuant to this section, as well as any developer contributed capital, which may include the appraised value of any land or existing improvements, or both, in the project owned or controlled by the developer.

      (4)  The licenses issued pursuant to paragraph (1) or (2) of this subsection shall authorize the sale of alcoholic beverages for immediate consumption on the operator's premises.  If the project is located within the boundaries of two or more municipalities, each municipality shall approve the issuance of the license or licenses.  [The director may issue not more than 566 such licenses.]

     c.  No person who would fail to qualify as a licensee under Title 33 of the Revised Statutes shall be permitted to hold an interest in a special license under the provisions of this section.

     d.  Licenses shall be subject to all the provisions of Title 33 of the Revised Statutes, rules and regulations promulgated by the director and municipal ordinances.

     e.  No license issued pursuant to this section shall be transferred to any premises other than a premises located within the same smart growth development project.  A special retail consumption license may be transferred to another corporation or other legal entity operating or intending to operate a hotel, restaurant or bar, including any restaurant or bar operated within a cinema, arcade or other retail establishment, that serves alcoholic beverages anywhere in the same project or to the owner of such project pending a subsequent transfer to another corporation or other legal entity operating or intending to operate a hotel, restaurant or bar, including any restaurant or bar operated within a cinema, arcade or other retail establishment, that serves alcoholic beverages anywhere in the same project.  A special retail distribution license may be transferred to another corporation or other legal entity operating or intending to operate a retail business on any premises located in the same project or to the owner of such project pending a subsequent transfer to another corporation or other legal entity operating or intending to operate a retail business on any premises located in the same project.  After the initial transfer of a license pursuant to this section, the director shall assign a distinctive designator for the license number to identify the license as being subject to the provisions of this subsection.

     f.  Application for the initial issuance and renewal of each license shall be made to the director on an annual basis.  The fee for the initial issuance of the license shall be [two and times] one-half the average sale price for [the three most recent] all sales of plenary retail consumption licenses in the municipality where the license is being issued during the preceding [five] ten years.  If the project is located within the boundaries of two or more municipalities, the highest average sale price of the two or more municipalities shall be used.  If less than three plenary retail consumption licenses have been sold in the municipality or municipalities, as the case may be, within the previous [five] ten years, the municipality or municipalities, as the case may be, shall obtain an appraisal from a qualified appraiser of its own choosing, at the applicant's expense, to determine the appropriate fee for the license.  The appraisal process shall include an examination of previous transactions in the municipality or municipalities, as the case may be, and also shall reflect that licenses issued pursuant to this section shall be subject to the restriction set forth in subsection e. of this section.  One half of the amount of the application fee for the initial issuance of the license shall be paid upon the issuance of the license and the other half of that amount shall be paid one year later.  The director shall establish an annual fee for the license which shall not exceed the fee which may be imposed by a municipality for a plenary retail consumption license pursuant to R.S.33:1-12.

     g.  The fee for the initial issuance of the license shall be distributed in the following manner:

     (1) [Twenty-five] Fifty percent shall be paid to the municipality wherein the smart growth development project is located and if the project is located within the boundaries of two or more municipalities, the fee shall be divided equally among those municipalities; and

     (2) [Twenty-five] Fifty percent shall be paid to the Director of the Division of Alcoholic Beverage Control[;

     (3) Fifty percent shall be divided equally among and paid to the plenary retail consumption licensees in the municipality or municipalities where the licensed premises will be located].

     h.  [If the individual corporation or entity holding the license determines to sell a license issued pursuant to this section, the license shall be sold for the sum paid pursuant to paragraph (3) of subsection g. of this section] (Deleted by amendment, P.L.    ,               c.    (pending before the Legislature as this bill).

     i.  [The director shall not issue a special concessionaire permit for any location or premises which is eligible to obtain a license to serve alcoholic beverages under the provisions of this act] (Deleted by amendment, P.L.    , c.    (pending before the Legislature as this bill).

     j.  Pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), the director shall adopt rules and regulations to effectuate the purposes of this act. 

(cf: P.L.2007, c.351, s.2)

 

     3.  R.S.33:1-76 is amended to read as follows:

     33:1-76.  Anything to the contrary hereinbefore notwithstanding, and for the benefit not of property but of persons attendant therein, no license shall be issued for the sale of alcoholic beverages within two hundred feet of any church or public schoolhouse or private schoolhouse not conducted for pecuniary profit, except to manufacturers, wholesalers, hotels, clubs and fraternal organizations which owned or were actually in possession of the licensed premises on December sixth, one thousand nine hundred and thirty-three.  The protection of this section may be waived at the issuance of the license and at each renewal thereafter, by the duly authorized governing body on authority of such church or school, such waiver to be effective until the date of the next renewal of  the license.  [Said] The two hundred feet shall be measured in the normal way that a pedestrian would properly walk from the nearest entrance of said church or school to the nearest entrance of the premises sought to be licensed.

     The prohibition contained in this section shall not apply to the renewal of  any license where no such church or schoolhouse was located within two hundred feet of the licensed premises as aforesaid at the time of the issuance of the  license, nor to the issuance or renewal, or both, of any license where such premises have been heretofore licensed for the sale of alcoholic beverages or intoxicating liquors, and such church or schoolhouse was constructed or  established, or both, during the time said premises were operated under said previous license.  The prohibition in this section shall not apply to the issuance of a new license or renewal of a license where the licensed premises is operated as a restaurant as defined in subsection t. of R.S.33:1-1, a minimum of 50 percent of the publicly-accessible floor space in the premises is dedicated to food service or other retail uses such as a cinema or arcade, any dance floor within the premises does not exceed 20 percent of the publicly-accessible floor space in the premises, and no alcoholic beverages are sold for off premise consumption.

(cf: R.S.33:1-76)

 

     4.  This act shall take effect on the first day of the fourth month after enactment.

 

 

STATEMENT

 

     P.L.2007, c.351 (C.33:1-24.1 et seq.) established a procedure for the Director of the Division of Alcoholic Beverage Control to issue to corporations or other legal entities developing smart growth development projects special licenses to sell alcoholic beverages.  This bill amends that statute to permit the director to issue special retail consumption licenses and special retail distribution licenses for the sale of alcoholic beverages in smart growth development projects.  The bill revises the definition of “smart growth development project” in the current law and also adds a definition of a “smart growth area.” 

     The bill provides a formula for the director to use in determining the number of special retail consumption licenses and special retail distribution licenses that may be issued in a smart growth development project based upon the size of the project and the estimated value of private investments that the project is expected to generate.  No project would qualify for more than six licenses.  The special licenses would be issued to corporations or entities that plan to operate a hotel, restaurant, or bar, including any restaurant or bar operated within a cinema, arcade, or other retail establishment. 

     The special retail consumption and retail distribution licenses may be transferred only to a corporation or other entity that intends to use the license within the same project.  After the initial transfer of the license, the director is to assign a distinctive designator for the license number so as to identify the license as being subject to the provisions of this bill.

     The fee for the initial issuance of the license is one-half the average sale price for all sales of plenary retail consumption licenses in the municipality where the license is being issued during the preceding ten years.  If the project is located within the boundaries of two or more municipalities, the highest average sale price of the municipalities is to be used.  If less than three plenary retail consumption licenses have been sold within the previous ten years, the municipality is to obtain, at the applicant's expense, an appraisal from a qualified appraiser of its own choosing to determine the appropriate fee for the license.  The appraisal process must include an examination of previous transactions in the municipality and also reflect the restrictions on transfer of the licenses set forth in this bill.

     Fifty percent of the fee for the initial issuance of a license is to be paid to the municipality wherein the smart growth development project is located, and if the project is located within the boundaries of two or more municipalities, the fee is to be divided equally among those municipalities.  The other 50 percent is to be paid to the director.

     Current law prohibits the issuance of an alcoholic beverage license for use on premises within two hundred feet of any church or school.  The bill provides that this prohibition would not apply to the issuance or renewal of a license where: (1) the licensed premises is operated as a restaurant, and at least 50 percent of the floor space open to the public is dedicated to food service or other retail uses such as a cinema or arcade; (2) any dance floor within the premises does not exceed 20 percent of the floor space open to the public; and (3) alcoholic beverages are not sold for off premise consumption.