A4666 3R

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:

³[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 ¹[, primarily for the showing of first-run motion pictures,]¹ for which admission is charged.

b. A license issued pursuant to this section shall be used only in connection with a ¹[premises that is primarily used for the showing of first-run motion pictures] qualifying motion picture exhibition facility as defined in subsection h. of this section¹.

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 ¹[the showing of first-run motion pictures] scheduled motion picture exhibitions conducted at the licensed premises in connection with the operation of the qualifying motion picture exhibition facility¹.

d. Application for the initial issuance and renewal of each license shall be made to the municipal governing ²board or² 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 ¹[at least]¹ $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, ²a governing board or body of a municipality and a motion picture exhibition facility may negotiate² the fee for the initial issuance of a license issued pursuant to this section ²[shall be $150,000] , provided that the fee shall not exceed $210,000².

f. A license issued pursuant to this section shall ¹[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] remain appurtenant to the qualifying motion picture exhibition facility for which it is issued and shall not be transferred, assigned, sold, pledged, or otherwise used in connection with any other premises or business operation. The license may be used only in connection with the qualifying motion picture exhibition facility operated by the licensee. Upon permanent cessation of qualifying motion picture exhibition operations at the licensed premises, the license shall immediately expire¹.

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 ¹[exclusively and]¹ newly released for ¹commercial¹ theatrical exhibition ¹[, and is shown in a movie picture exhibition facility during its initial exhibition period] to the general public and exhibited during its initial commercial release period¹.

“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 ¹[premises where a first-run motion picture is exhibited and any adjacent premises owned and operated by the licensee] qualifying motion picture exhibition facility¹.

“Motion picture exhibition facility” means a ¹permanently located commercial¹ movie theater ¹[, screening room, or other venue that is being used primarily for] or similar fixed exhibition venue primarily engaged in¹ the exhibition of ¹[a]¹ first-run motion ¹[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] pictures to the general public for paid admission¹.]³

³1. 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 for which admission is charged.

b. A license issued pursuant to this section shall be used only in connection with a qualifying motion picture exhibition facility as defined in subsection g. of this section.

c. The license shall authorize the sale of alcoholic beverages by the for-profit entity approved pursuant to procedures established by the Division of Alcoholic Beverage Control, for consumption on the licensed premises to patrons during the hour immediately preceding and during a scheduled motion picture showing conducted on the licensed premises.

d. Application for the initial issuance and renewal of each license shall be made to the municipal governing board or body on an annual basis. The fee for the initial issuance of the license shall not exceed the average sale price of the three most recent plenary retail consumption license transfers, assignments, sales, or pledges in the municipality where the license is being issued during the preceding five years, or $250,000, whichever is the lesser amount. If the motion picture exhibition facility is located within the boundaries of two or more municipalities, the fee for the initial issuance of the license shall not exceed the highest average sale price of a plenary retail consumption license issued within the two or more municipalities within the last five years, or $250,000, whichever is the lesser amount. If less than three plenary retail consumption licenses have been transferred, assigned, sold, or pledged in the municipality or municipalities, as the case may be, within the previous five years, the fee for the initial issuance of the license shall not exceed $250,000. 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 after the date of the issuance of the license, and one-third of the fee shall be paid 18 months after the date of the issuance of the license. The fee for the initial issuance of the license shall be paid to the municipality in which the license is issued.

e. A license issued pursuant to this section shall remain appurtenant to the qualifying motion picture exhibition facility for which it is issued and shall not be transferred, assigned, sold, pledged, or otherwise used in connection with any other premises or business operation. The license may be used only in connection with the qualifying motion picture exhibition facility operated by the licensee. Upon permanent cessation of qualifying motion picture exhibition operations at the licensed premises, the license shall immediately expire.

f. 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.).

g. 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 newly released for commercial theatrical exhibition to the general public and exhibited during its initial commercial release 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 qualifying motion picture exhibition facility.

“Motion picture exhibition facility” means a permanently located commercial movie theater or similar fixed exhibition venue primarily engaged in the exhibition of first-run motion pictures to the general public for paid admission.³

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