Houghtaling, Downey & Egan Bill Expanding Issuance of Alcoholic Beverage Licenses Advances

Bill Allows Issuance of Additional Alcoholic Beverage Licenses within Boundaries of Formally Owned or Operated Military Installations

(TRENTON) – Legislation sponsored by Assembly Democrats Eric Houghtaling, Joann Downey and Joseph Egan to issue additional alcoholic beverage licenses to a project area in three municipalities and at which a federally owned or operated military installation is closed and transferred to a government entity for the purpose of conversion, redevelopment, or revitalization advancedMonday in the Assembly.

Under the current law, a municipality may issue one plenary retail consumption license, for bars and restaurants, for each 3,000 of its population. This bill provides that an increase in population resulting from residential development in a formerly federally owned or operated military installation would not be included in the calculation issued to new licenses.

“By allowing additional alcoholic beverage licenses to be distributed in our municipalities, we are bringing an ample amount of opportunities to Monmouth County,” said Houghtaling (D-Monmouth). “It will promote small businesses, encourage tourism, and create jobs for our constituents.”

“To put it simply, this piece of legislation is an opportunity for economic growth both in Monmouth County and in New Jersey,” said Downey (D-Monmouth). “By rebuilding our closed military bases, such as Fort Monmouth, and providing alcoholic beverage licenses to these areas, we will be revitalizing the 11^th District.”

The bill (A-3888) provides that each of the three municipalities located within a project area may, by ordinance or resolution, issue the special licenses in the following manner:

• The host municipality with the largest population is to issue two licenses;
• The host municipality with the smallest population is to issue four licenses; and
• The remaining host municipality is to issue six licenses.

            Following the three year period, a host municipality that has not issued a license may have up to two years to transfer the license, for a fee, to another host municipality for issuance within a premises located within a project area.

“We can spur community revitalization, job creation and encourage tourism by expanding the opportunity for licensure in these areas,” said Egan (D-Middlesex, Somerset). “This is an opportunity to bring new life to properties otherwise left without a functional use to residents and the areas they’re in.”

A license is to be issued without being designated for a site and remain inactive until the property upon which the license is to be sited is transferred from the government entity to a private entity. In addition, the bill prohibits the licenses from being transferred to a premises located outside of the boundaries of the project area until the authority overseeing, administering, and implementing the plan for the project area has been dissolved. Following the dissolution of the authority, the special licenses may be transferred for use in connection with any premises located within the host municipality.

The bill was approved by the Assembly Appropriations Committee; it will now be considered by the Assembly Speaker for a floor vote. The measure cleared the Assembly Oversight, Reform, and Federal Relations Committee in May.