A4666

An Act concerning alcoholic beverage licenses and supplementing Title 33 of the Revised Statutes.

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

1. 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 a for-profit entity that regularly operates a motion picture exhibition facility, primarily for the showing of first-run motion pictures, for which admission is charged.

b. A license issued pursuant to this section shall be used only in connection with a premises that is primarily used for the showing of first-run motion pictures.

c. The license shall authorize the sale of alcoholic beverages by the for-profit entity who has been approved pursuant to procedures established by the Division of Alcoholic Beverage Control for consumption on the licensed premises:

(1) during the two hours immediately preceding the showing of first-run motion pictures; and

(2) during the showing of first-run motion pictures.

d. Application for the initial issuance and renewal of each license shall be made to the municipal governing body on an annual basis. Except as provided in subsection e. of this section, the fee for the initial issuance of the license shall be at least $210,000. One-third of the initial issuance fee for the license shall be paid upon the issuance of the license, one-third of the fee shall be paid nine months from the date of the issuance of the license, and one-third of the fee shall be paid 18 months from the date of the issuance of the license.

e. If 10 percent of the alcoholic beverages sold by a motion picture exhibition facility are produced by holders of a limited brewery license, restricted brewery license, farm brewery license, plenary winery license, farm winery license, cidery and meadery license, craft distillery license, or historic distillery license pursuant to R.S.33:1-10, the fee for the initial issuance of a license issued pursuant to this section shall be $150,000.

f. A license issued pursuant to this section shall not be transferred for use in connection with any premises other than a premises that is operated as a motion picture exhibition facility located within the same location or any adjacent premises operated by the licensee.

g. 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.).

h. For the purposes of this section:

“First-run motion picture” means an audiovisual work consisting of a series of related images that, when shown in succession, impart an impression of motion, together with accompanying sounds, if any, that is exclusively and newly released for theatrical exhibition, and is shown in a movie picture exhibition facility during its initial exhibition period.

“For-profit entity” means any corporation, company, partnership, sole proprietorship, person or entity owning 10 percent or more of the shares thereof.

“Licensed premises” means a premises where a first-run motion picture is exhibited and any adjacent premises owned and operated by the licensee.

“Motion picture exhibition facility” means a movie theater, screening room, or other venue that is being used primarily for the exhibition of a first-run motion picture, if the exhibition is open to the public or is made to an assembled group of viewers outside of a normal circle of a family and its social acquaintances.

2. This act shall take effect on the first day of the fourth month next following the date of enactment.

STATEMENT

This bill permits for-profit movie theaters to acquire a plenary retail consumption license.

Under the bill, 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 for-profit entity that regularly operates a motion picture exhibition facility, commonly known as a movie theater, primarily for the showing of first-run motion pictures, for which admission is charged. This license is to be used only in connection with a premises that is primarily used for the showing of first-run motion pictures. A license issued under the bill authorizes movie theaters to sell alcoholic beverages two hours before a first-run motion picture is shown and during the showing of the first-run motion picture.

The bill requires the application for the initial issuance and renewal of each license be made to the municipal governing body on an annual basis. Under the bill, the fee for the initial issuance of the license is to be at least $210,000. However, if 10 percent of the alcoholic beverages sold by a motion picture exhibition facility are produced by the holders of a limited brewery license, restricted brewery license, farm brewery license, plenary winery license, farm winery license, cidery and meadery license, craft distillery license, or historic distillery license, the fee for the initial issuance of a license issued under the provisions of the bill is to be $150,000. One-third of the initial issuance fee for the license is to be paid when the license is issued, one-third of the fee is to be paid nine months after the license is issued, and one-third of the fee is to be paid 18 months after the license is issued.

Under current law, a municipality may issue one plenary retail consumption license for each 3,000 of its population. This restriction would not apply to the holder of a plenary consumption license used in connection with a premises that is primarily used for the showing of first-run motion pictures in accordance with the bill’s provisions.

By expanding license eligibility to for-profit movie theaters, this legislation supports an industry still facing significant financial strain from the COVID-19 pandemic and enduring shifts in audience behavior. This legislation enables theaters to diversify revenue streams through alcohol sales, helping them remain viable in a market increasingly dominated by streaming platforms. The bill also encourages economic activity by drawing patrons back to theaters and surrounding commercial districts. By incentivizing the sale of New Jersey-produced alcoholic beverages, it supports the State’s craft alcohol industry and strengthens local supply chain partnerships. It is the intent of the sponsor to promote economic development and help preserve movie theaters as cultural and commercial anchors in communities across New Jersey.