Annual Municipal Clerk’s
Association Education
Conference
March 25, 2014
State of New Jersey
Department of Law & Public Safety
Division of Alcoholic Beverage Control
Licensing Bureau
License Renewal
All licenses must be renewed annually on application forms provided by the Division
Retail licenses - July 1st June 30th
Summer Seasonal - May 1st thru November 15th
(This year, by Executive Order, the Governor granted Seasonal Licenses the
ability to open on March 1st )
Winter Seasonal - November 15th thru May 1st
All licenses expire on June 30th and are required to be renewed on a timely basis
NOTE:
Applications may not be approved without an Alcoholic Beverage Retail
License Clearance Certificate for Renewal from the Division of Taxation
See “Governing Body Procedural Instructions” handout packet pages 1-4.
NEW THIS YEAR…
*** MANDATORY ***
“E-Mail Address Form” must be returned with
renewal application and fees. See the orange form
in your renewal packet which will be sent by the
Division next month.
All licensees must provide an E-Mail address on
this orange form at time of renewal this year.
This is mandatory for all licensees.
Special Ruling pursuant to N.J.S.A. 33:1-12.39
Applications stamped “12.39 Relief Required” have been inactive for two or more
license terms.
Procedures to petition the Director are included in your renewal packet and should be
given to each licensee required to petition.
Accept the renewal application and fees, and forward to the Division.
Do not act upon renewal prior to the licensee receiving a Special Ruling from the
Director.
Do not act upon renewal without a Tax Clearance Certificate.
See “12.39 Procedure for Licensees to Petition the Director” handout packet pages 5-7
which can be given to licensees.
To determine which licensees need Special Rulings, see “At a Glance” handout packet
page 8.
N.J.S.A. 33:1-12.39 Procedures
Licensees can submit their petitions to the Division no earlier than May
15th.
A copy of the Verified Petition must be submitted to the municipal clerk
at the same time the original is submitted to the Division.
The renewal application and fee must be received by the Division in
order for the 12.39 relief to be considered.
See “12.39 Procedural Letter for Licensees,” handout packet pages
5-7 which can be given to licensees.
Questions can be directed to Chris Margounakis at (609) 292-9301.
Timely Filing of Renewal Applications
Renewal applications and fees filed on or
before July 30th are considered timely filed.
Applications and fees filed after July 30th are
considered late and will required a Special
Ruling pursuant to N.J.S.A. 33:1-12.18 from the
Division.
Special Ruling pursuant to N.J.S.A. 33:1-12.18
The statute permits a license holder to petition the Director following the
expiration of the license renewal period and request a Special Ruling to
permit the filing of an application for a “new” license upon failure to timely
renew.
As a result of P.L. 2010, c. 14, the time for filing a late renewal application is
now July 30 of the year ending the term for which renewal is sought.
A licensee that files its renewal application and filing fees with the issuing
authority after July 30th of the license term, and its verified petition and filing
fee with the Division by July 30th of the year following the ending term must
receive a Special Ruling from the Director before the license can be issued.
If a licensee files a renewal application between July 31, 2013 and July 30,
2014, you may accept the renewal application and fees, but advise them
that the license will lapse and cease to exist if they do not file a 12.18
petition and fees to the Division of ABC by July 30, 2014.
See handout packet pages 9-10 (2013-2014 license term) and pages 11-12
(2014-2015 license term).
N.J.S.A. 33:1-12.18 - Procedures
To obtain a Special Ruling, the Director must make a written
determination that the applicant’s failure to apply for a renewal
of their license in a timely manner was due to circumstances
beyond the licensee’s control.
In order to process a Special Ruling, it is necessary for:

the licensee to submit a verified petition & $100 filing fee to
the Division on or before July 30 of the year ending term.
A copy of the verified petition must be submitted to the municipal clerk at
the same time the original is submitted to the Division

proof that the renewal application and fees were filed with
the issuing authority on or before July 30 of the year
ending term.
See “Notice to Clerks” dated August 9, 2013, Extraordinary
Circumstances, handout packet page 13.
N.J.S.A. 33:1-12.18
(continued…)
Once the Special Ruling is granted by the Director:



The licensee must complete the necessary publication
requirements (see sample publication requirement handout packet
pages 14-15).
Receipt of a Tax Clearance Certificate for renewal.
The Governing Body may then consider renewal of the subject
license for the license term and grant or deny renewal in the
reasonable exercise of its discretion.
The resolution should reference that the license is renewed pursuant to
N.J.S.A. 33:1-12.18 Special Ruling granted by the Director to permit the
issuance of a “new” license upon failure to timely renew for the
201_ -201_ license term.
Resolutions
All Resolutions should clearly
list:
 License Number
 Licensee Name
 Licensed Premise
 License Renewal Term
 Date Adopted
Renewal Resolutions
Once the resolution is adopted forward to the Division:
Your issuing authority has no jurisdiction to act on the renewal
of license without an Alcoholic Beverage Retail Licensee
Clearance Certificate for Renewal from the Division of
Taxation.
 Check your confidential Web address


Municipal Clerks may contact the Division of Taxation’s
ABC Licensing Unit at (609) 292-0043
It is the licensee who must be in tax compliance.
Licensees will be given a list of field offices to contact
Licenses will not be considered renewed until your Resolution
has been received by this Division.
Municipal Resolutions with Special Conditions
Resolution must specifically include any Special Conditions that are to be applied to the
license for that license term only.
Conditions may not be imposed for matters not directly related to alcoholic beverage
control.
For Special Conditions to become effective, they must be imposed at the time of
issuance, renewal or transfer of a license.
Special Conditions may not be “revisited” during the license term, however, a Special
Condition may be “relaxed” at any time during the license term by Resolution.
Copies of Resolutions imposing Special Conditions must be submitted to the Division.
Filing an Appeal
Licensee’s can appeal municipal actions relating
to:
- Renewal of license
- Transfer of license
- Issuance of a new license
- Suspension of license
- Special conditions imposed on a license
See “Procedure to File an Appeal” handout
packet pages 16-17.
Concessionaire Agreement
What can a licensee do when they want
to have someone operate their kitchen?
See Opinion Letter – “Concession and
Lease Agreements” handout packet
pages 18-19.
KITCHEN OPERATOR IS
DISCLOSED HERE:
Questions 4.4 & 4.5
Other Operations
(applicant or other)
License Transfer
A license may be transferred from:
 one person or entity to another
 one place to another
 or both
State Fee - $200
Municipal Fee
 10% of annual renewal fee
person-to-person
place-to-place transfer

20% of annual renewal fee
combined transfer - both person-to-person and
place-to-place
See “Transfer Guide” handout packet page 20.
Transfer Facts
A person-to-person transfer is
necessary:

Whenever a license is to change from
one person or entity to another.
Transfer Facts (continued…)
A place-to-place transfer is necessary:




Whenever a licensee wishes to change the place
where the license is sited (business location) or
To site the license at an operating place of business
following a period of inactivity
when the license has been “pocketed” (not sited at a
business location) or
Wishes to permanently expand the scope of the
license premises or
To delicense a portion of the premises.
Transfer Facts (continued…)
For a place-to-place transfer, particular attention needs to be given to:
The statute prohibition of
siting a license within 200 feet
of any church or school without
a waiver, as mandated in
N.J.S.A. 33:1-76.
Distance between
premises ordinance,
if any.
Transfer Facts (continued…)
For a place-to-place expansion, particular attention needs to be given to:
-
The area in which the licensee wishes to extend must be contiguous or
adjoin the permanently licensed premises.
-
It is possible for a licensee to expand the licensed premises to than one
building on a property.
-
No public or private thoroughfare may bisect between the facilities to be
included under one license.
-
All locations must be under the control of the same legal entity although
different registered trade names may be used for each building.
NOTE: A voluntary abandonment of all of the licensed premises shall be a
change of facts (amendment). A place-to-place transfer is not required.
N.J.A.C. 13:2-7.2(d).
Transfer Requirements
Notice of Publication - the transferee must insert a public
notice in a newspaper of local circulation.
Public notice must appear twice, one week apart.
Municipality may not transfer a license until five (5) business
days after the second notice has been published. (N.J.A.C.
13:2-7.6).
Transfer Requirements (continued…)
PERSON-TO-PERSON TRANSFER ONLY:
Consent to Transfer - N.J.S.A. 33:1-26 requires that an issuing
authority only consider a transfer application if the application contains
“the consent in writing of the licensee to the transfer.”
Note: The issuing authority has no jurisdiction to consider a transfer
application without a consent to transfer.
Clearance Certificate - An Alcoholic Beverage Retail Licensee
“Transfer Clearance Certificate” must be obtained from the New
Jersey Division of Taxation’s ABC Licensing Unit before the license
can be transferred (609-292-0043).
A municipal issuing authority may not consider a person-to-person
transfer application unless it receives an Alcoholic Beverage Retail
Licensee Clearance Certificate.
Transfer Investigations by Municipality
Any investigation by the issuing authority
should include:



fingerprinting
a criminal background check
financial disclosure documentation
THIS INVESTIGATION SHOULD BE
CONDUCTED BY THE POLICE
DEPARTMENT. (N.J.A.C. 13:2-7.7)
Transfer Resolutions
The text of the Municipal Resolution should be conclusive and
may not be contingent upon future events.
Once approved, a license transfer cannot be reversed.
The only way to correct an improperly transferred license is
through a new transfer procedure.
Once a transfer resolution becomes effective, it may not be
rescinded.
The resolution approving the transfer should be forwarded to
the Licensing Bureau as soon as enacted by the issuing
authority.
Endorsement of License Certificate
Following approval of a transfer the municipal clerk/ABC Board
Secretary shall affix an endorsement upon the face of the
existing license certificate as follows:
The license, subject to all of its terms and conditions, is
hereby transferred . . .
effective date
to (name of transferee) for a person-to-person transfer
for premises located at (address of premises or notation “no
premises” and insert mailing address
from (former location) to (new location) for a place-to-place
transfer



Date of Endorsement
Name of Issuing Authority
By Name of Clerk/Secretary
Endorsement of License Certificate (continued…)
The endorsed license certificate should be
displayed on the premises of the new active
licensee.
Licenses that are inactive the certificate is
maintained in the municipal files.
If you prefer a new certificate to be printed you
can fax a written request to the Licensing
Bureau.
Conflict License - Transfer
A municipal issuing
authority may not
issue a license to or
transfer a license to or
from any corporation,
organization or
association, in which
any of its members
holds a direct or indirect
interest.
In circumstances where
a member of the
issuing authority holds
an interest in the
license, the license
action (application for
renewal or transfer)
must be handled by the
Director.
Conflict License – Transfer Procedure
The following items should be forwarded to the Division for
handling of the transfer:

Transfer Application and filing fee

Consent to Transfer

Bulk Sale Permit Application (fee if applicable)


A copy of the Alcoholic Beverage Retail Licensee
Clearance Certificate
A resolution stating that the governing body has no
objection to the Director transferring the license
pursuant to N.J.A.C. 13:2-4.6
Conflict License – Transfer Procedure
The Division will request from the licensee:
- The Notice of Publication
(Objections .are made to the Director)
- All the necessary documents to complete a
background investigation which includes the
fingerprinting process
Once the Director approves the transfer the license
certificate will be endorsed and mailed.
If the license is inactive you are to hold the
certificate in your office.
Corporate Structure Change
When a change in the corporate
stockholdings of a licensed corporation
occurs, that change must be reported
to the issuing authority within ten (10)
days of the sale of the corporation’s
shares.
This action does not constitute a
license transfer but is handled as a
change in corporate structure.
Changes encompassing one-third or
more of the total number of issued
shares, the change must be reported
by the filing of a complete 12-page
application.
Changes constituting less than onethird of the total issued shares, the
change is reported by amending the
last application on file.
Corporate Structure Change (continued…)
Any new stockholder:


must be fully qualified to
hold an alcoholic beverage
license
acquiring 1% or more of
the corporations stock must
publish in a newspaper of
local circulation
Individuals name &
address
Name of licensed
corporation
A copy of the corporate
structure change application
must be forwarded to the
Licensing Bureau


No filing fee is required
No requirement for the
issuing authority to approve
a stockholder change by
resolution
Extension of License
In the case of:




death
bankruptcy
receivership or
incompetency of a licensee
or if for any reason
whatsoever, the operation
of the business covered by
a license passes by
operation of law to a
person other than the
licensee:
The licensed business
may only be operated
after the license has
been extended by the
municipality.
Extension of License (continued…)
When a license is owned
by an individual who
dies or goes into
bankruptcy (Chapter
13), receivership, or
similar court supervised
insolvency proceedings,
the license must be
extended to the
executor, administrator,
trustee or person duly
appointed by the court.


A full 12-page
application must be filed
along with documented
proof of court
appointment pursuant to
N.J.A.C. 13:2-6.1
The municipality must
approve the extension of
license by resolution

No filing fees required

No public notice required
Extension of License (continued…)
The Director may issue a special permit for a
limited time until the municipal determination.

Special Permit to Operate Under Licensee of a
Deceased Person Pending Extension of Such
License to the Executor or the Administrator
This permit is obtained upon the death of a
licensee by an executor or administrator or an
estate, a trustee or receiver in bankruptcy. This
permit allows the continued operation of the
licensed business pending formal extension of
the license by municipal resolution.
Extension of License (continued…)
If the licensee is a
corporation or
partnership and one
of the parties who
holds an interest in
the license is
affected, the license
business may
continue to operate
without a special
permit.
The license however
must be amended to
show how the
affected party’s
interest is being
controlled.
N.J.S.A. 33:1-26;
N.J.A.C. 13:2-6
Ad Interim Permit
An application for an Ad Interim permit may be submitted to
the Division when:



a license is not renewed by the issuing municipality by
resolution on time to be effective on the first day of the
new license term
and the licensee has filed the renewal application
paid the filing fees
The permit will allow the licensed business to operate until the
municipal issuing authority can meet and renew the license by
resolution.
Ad Interim Permit (continued…)
The application must be accompanied by:

a letter from the Municipal Clerk/ABC Board Secretary indicating
that the application and fees have been filed and that there is no
objection to issuance of the temporary permit
The fee for this permit is $75 plus the daily fee of $5
per day payable to the Division of ABC.
The application must be completed in full.
The licensee must have obtained a clearance certificate
from the Division of Taxation before the permit will be
issued.
Extension of Premises
Permit
When the licensee wishes to
hold an event in an area off the
licensed premises but on
property that is contiguous to
it:
Application must include:

information regarding the
nature of the event

the location

date and time
Include a rough drawn sketch
depicting the extended area as
it adjoins the licensed
premises
The fee for this permit is $75
per day payable to the Division
Application form must be
endorsed by

Municipal Clerk/ABC Board
Secretary

Chief of Police of the
municipality in which the
license is issued

applicant
Catering Permit
An application must be submitted when a retail consumption
licensee wishes to sell alcoholic beverages in open containers off
its licensed premises.
The fee is $100 per day (for each 24 hour period).
Only 25 permits may be issued for any one location in a calendar
year.
A detailed sketch of the locations where alcoholic beverages are to
be dispensed including:


the bar area
location of person checking ID’s
Catering Permit (continued…)
Applications must be
endorsed by:



Municipal Clerk/ABC Board
Secretary
Chief of Police in the
municipality where the sale
will take place
An authorized person at
the premise where the
affair is to be held
Applications must be
submitted to the Division
at least two weeks prior
to the event.
New License Issuance
A municipality may
issue a new license if
they are under the
population cap. See
N.J.S.A. 33:2-12.14.
See handout packet pages 21-26.
The two methods to
issue a new license:
1. Historical Method
2. Public Sale
Option (bid)
Club License
Club Licenses are a source of many inquiries
and complaints at the Division.
Many Club Licenses operate contrary to law.
Club licenses MAY NOT operate as a retail
licensee.
They MAY NOT be open to the general public.
See handout packet pages 27-38.
Driver’s License Scanners
N.J.S.A. 39:2-3.3 – 3.6 “Driver Privacy
Protection Act.”
A licensee cannot retain driver’s
license information without the driver’s
consent.
4th degree crime and allows civil suits
with punitive damage.
Social Affair Permit
Fee Schedule:

$100 for a one-day permit issued to
civic
religious
educational organizations

$150 for a one-day permit issued to
any other non-profit organization
Issued to a bona fide, non-profit organization that wishes to
hold a fundraising event that encompasses the sale of
alcoholic beverages and where the monies that accrue will be
used for civic, religious, educational or other purposes that are
not for personal or profit making corporate gain.
Social Affair Permit (continued…)
This permit is frequently issued to authorize the sale
and service of alcoholic beverages at:




carnivals
church feasts
bazaars
parades, etc.
No organization may receive more than 12 such
one-day permits in any calendar year.
No more than 25 permits may be issued at a
location in a calendar year.
The permittee may sell alcoholic beverages only in
open containers for consumption on the premises at
which the event is to be held and which is covered
by the permit issued.
Social Affair Permit (continued…)
Organizations making application for the first time
will be required to submit:

proof of non-profit status in New Jersey
Acceptable forms of proof are:



certificate of incorporation
federal tax exempt certificate
or combinations of:
charter or by-laws
financial records
membership lists
Social Affair Permit
(continued…)
A sketch of the location where alcoholic beverages are to be
dispensed must accompany the application including:


the bar area
location of person checking ID’s
Applications must be endorsed by:



Municipal Clerk/ABC Board Secretary
Municipal Police Chief
An authorized person at the premise on which the event is to be held
Applications must be submitted to the Division at least two weeks
prior to the date of the affair.
Social Affair Permit questions? Please call the Permits Section:
Charlotte Snyder, at (609) 984-1954.
See “Notice to Clerks” dated August 9, 2013,
handout packet page 39.
Disciplinary Matters
Problem licensee – what can
you do?
Call our Investigations Bureau
toll free at (866) 713-8392, or
speak to your local chief of
police or your mayor.
Local police can charge
licensees with violations.
Have the police department
call our Enforcement Bureau
for further information.
Impose Special Conditions on
the license at time of renewal,
issuance or transfer to curtail
specific problems at a licensed
premises.
Tastings held at Licensed Premises
A “Tasting Event” is a scheduled event hosted by a
licensee or social affair permittee where samples are
provided. The event may be open to the general public
or limited by invitation.
See handout packet pages 40-43 for
Consumption “33” Licensed premises.
See handout packet pages 44-49 for
Distribution “44” Licensed premises.
Alcohol Server Training
While the Division of Alcoholic Beverage Control does not require or endorse any
specific program, alcohol server training information is available from the following:
Techniques of Alcohol Management (TAM Training)
Please contact the New Jersey Licensed Beverage Association at (609) 394-6730
ServSafe Alcohol Training & Certification
Please contact the New Jersey Restaurant Association at (800) 848-6368 or
www.servsafe.com/alcohol/training-and-certification
New Jersey TIPS Certification Online
http://tipsalcohol.com/new-jersey-training.html
See handout packet page 50.
COMING TO THE DIVISION’S WEBSITE SOON…
** NOTICE TO LICENSEES **
New Federal Requirement that licensee
prevent access to TANF/EBT funds at
ATM’S or point-of-sale terminals to prevent
misuse of funds at licensed
establishments.
Licensees will receive Notice from the
Division.
New Issues…
Craft Distillery Licenses
Craft Brewery Licenses
-
-
Craft Distillery License Law became effective in New Jersey
December 1, 2013.
License entitles holder to manufacture not more than 20,000
gallons of distilled alcoholic beverages annually, as well as to
rectify, blend, treat and mix distilled alcoholic beverages.
Licensee can sell and distribute the product to wholesalers and
retailers, and to sell the product at retail to consumers on the
licensed premises for consumption on the premises, but only in
connection with a tour of the distillery, and for consumption off the
premises in a quantity of not more than five liters per person.
Sampling is also permitted.
The holder of this license will not be permitted to sell food or
operate a restaurant on the premises.
The fee for this license is $938.00.
IF YOU HAVE A QUESTION...
CALL US!
(609) 984-2830
OR VISIT OUR WEB SITE AT
www.nj.gov/oag/abc
Joann Frascella, Executive Assistant & Lisa Ellison Barata, Deputy Attorney General
See handout packet pages 51-52.
•If you are not sure which Bureau can be of assistance,
just call our main number shown above.