S4357

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 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 h. of this section.

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 scheduled motion picture exhibitions conducted at the licensed premises in connection with the operation of the qualifying motion picture exhibition facility.

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 $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 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.

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 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.

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 certain conditions.

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 operates a motion picture exhibition facility, commonly known as a movie theater. 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 scheduled motion picture exhibitions conducted at the licensed premises in connection with the operation of the qualifying motion picture exhibition facility.

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 $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.