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Annual Municipal Clerk’s Association Education Conference

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

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Annual Municipal Clerk’s Association Education Conference

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  1. 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

  2. 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.

  3. NEW THIS YEAR… *** MANDATORY *** • “E-Mail Address Form” mustbe 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.

  4. 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.

  5. 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.

  6. 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.

  7. 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).

  8. 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.

  9. 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.

  10. All Resolutions should clearly list: License Number Licensee Name Licensed Premise License Renewal Term Date Adopted Resolutions

  11. 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.

  12. 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.

  13. 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.

  14. 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.

  15. KITCHEN OPERATOR IS DISCLOSED HERE: Questions 4.4 & 4.5 Other Operations (applicant or other)

  16. 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.

  17. Transfer Facts • A person-to-person transfer is necessary: • Whenever a license is to change from one person or entity to another.

  18. 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.

  19. Distance between premises ordinance, if any. 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. Transfer Facts (continued…) For a place-to-place transfer, particular attention needs to be given to:

  20. 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).

  21. 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).

  22. 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.

  23. 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)

  24. 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.

  25. 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 aplace-to-place transfer • Date of Endorsement • Name of Issuing Authority • By Name of Clerk/Secretary

  26. 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.

  27. Conflict License - Transfer • A municipal issuing authority may notissue 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.

  28. 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

  29. 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. .

  30. 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 one-third of the total issued shares, the change is reported by amending the last application on file.

  31. 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

  32. 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.

  33. 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…)

  34. 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.

  35. 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

  36. 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.

  37. 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.

  38. 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 Extension of Premises Permit

  39. 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

  40. 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. Catering Permit (continued…)

  41. 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. • The two methods to issue a new license: 1. Historical Method 2. Public Sale Option (bid) See handout packet pages 21-26.

  42. 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.

  43. 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.

  44. Social Affair Permit • FeeSchedule: • $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.

  45. 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.

  46. 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

  47. 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.

  48. 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.

  49. 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.

  50. 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.

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