A 5125 New Jersey General Assembly · 2024-2025 Regular Session

Provides that certain non-profit corporation alcoholic beverage theater licensees include disregarded entities of such corporations; allows certain community theaters to sell alcoholic beverages.*

This bill expands eligibility for nonprofit theater liquor licenses in New Jersey to include tax-exempt "disregarded entities" (like single-member LLCs treated as part of a parent nonprofit for tax purposes). It specifically allows community theaters operating as 501(c)(3) nonprofits to obtain licenses for venues with 50-1,000 seats (smaller theaters) or 1,000+ seats (larger theaters), including their tax-exempt subsidiaries. The licenses permit alcohol sales during two hours before, during, and two hours after performances (with a 15-performance annual limit for smaller venues), but do not count toward other license caps. This directly affects nonprofit theaters seeking to serve alcohol during events without needing separate licenses for subsidiary entities.

Bill status in committee 1 of 4 stages cleared

Introduction

Dec 2024

Committee Review

Floor Vote

Governor

Introduced Dec 12, 2024 Last action Jun 30, 2025

Maddy AI version diff · 2 comparisons

What changed between versions

Reprint AOF 3/20/25 1R → Reprint AHO 6/19/25 2R · 7 edits

MODERATE

The bill significantly broadens the types of events eligible for plenary retail consumption licenses at nonprofit theaters by adding 'public entertainment events' (defined to include sporting events, simulcasts, and other social, charitable, or athletic events) alongside existing categories like musical performances and theatrical productions. It also adds a new provision allowing concessionaire revenue to subsidize events, a non-discrimination requirement for the ABC Division when approving nonprofit applicants, and removes the ownership requirement for adjacent licensed premises.

Scope change

The bill's scope expanded substantially by adding 'public entertainment events' (sporting events, simulcasts, social/charitable/athletic events) as a qualifying activity for alcohol licenses at nonprofit theaters of all sizes. This moves the bill beyond purely arts and cultural performances to encompass a broader range of public gatherings.

SCOPE

New category of 'public entertainment events' added throughout the bill, defined as including sporting events, simulcasts, or other social, charitable, or athletic events. This expands eligibility beyond traditional performances to include a much wider range of activities at nonprofit theaters.

Seating capacity language for large venues (1,000+ seats) changed from 'or more' to 'at least' and now includes 'public entertainment events' in the primary use requirement.

DEFINITION

The definition of eligible activities changed from 'musical or theatrical performances or concerts' to 'musical performances, theatrical productions, concerts, or other public entertainment events,' broadening the scope of qualifying activities.

The 'licensed premises' definition was changed to remove the word 'owned' before 'operated by the licensee,' meaning adjacent premises no longer need to be owned by the licensee, only operated by them. This broadens what counts as licensed premises.

FISCAL

New provision allowing that at the option of the nonprofit licensee, revenue generated by a concessionaire within or adjacent to the licensed premises may be used to support or subsidize performances or public entertainment events at the venue.

ENFORCEMENT

New requirement that the Division of Alcoholic Beverage Control shall not differentiate when approving a nonprofit applicant operating in a publicly-owned or nonprofit arts organization-owned theater, art-house movie theater, or performing arts center.

TECHNICAL

Definitions sections were reorganized throughout the bill, with old numbered definitions struck and replaced with new unnumbered definitions. The symbol '%' was replaced with the word 'percent' in the community theater section.

Introduced Version → Reprint AOF 3/20/25 1R · 7 edits

MODERATE

The bill was significantly expanded after committee action to add a new provision allowing municipalities to issue plenary retail consumption licenses to for-profit community theaters, in addition to the original purpose of clarifying that nonprofit theater licensees include disregarded entities. The definition of 'performance' was broadened across all sections to explicitly include motion pictures, dance recitals, literature readings, and other artistic or cultural exhibitions. The new section imposes restrictions on eligible business entities (no public trading, no ownership of other plenary retail consumption licenses) and limits alcohol sales to the hour before and during performances only.

Scope change

The bill's scope expanded from a narrow clarification about nonprofit theater licensees (disregarded entities) to a broader measure that also creates a new license category for for-profit community theaters, with specific eligibility restrictions and premises requirements. The definition of what constitutes a 'performance' was broadened across all sections to include motion pictures and other artistic events.

SCOPE

A new Section 3 was added allowing municipalities, with approval from the Division of Alcoholic Beverage Control Director, to issue plenary retail consumption licenses to eligible for-profit business entities operating as community theaters. This expands the bill beyond its original nonprofit-only focus.

The act description was amended to add 'and supplementing Title 33 of the Revised Statutes' to reflect the new section being added to the alcohol control statutes.

ELIGIBILITY

New definition of 'eligible business entity' requires that the entity is not publicly traded, not owned by a publicly traded entity, does not own other plenary retail consumption licenses, and has no 10%+ shareholder who owns other such licenses. This restricts the new license to small, independent operators.

REQUIREMENT

New premises standards for community theater licenses: stage-only venues need 50-1,000 seats; movie-only venues need 50-600 seats with no more than 5 screens; combined venues need 50-1,500 total seats with at least 25% dedicated to stage performances.

Alcohol sales under the new community theater license are limited to the one hour immediately preceding a performance and during the performance including intermission. Unlike the existing nonprofit theater licenses, no post-performance sales are permitted.

DEFINITION

A new definition of 'performance' was added to all sections, explicitly including motion pictures, musical concerts, theatrical plays, dance recitals, literature readings, and other artistic or cultural exhibitions. This broadens the scope beyond just musical/theatrical performances and concerts.

The definition of 'licensed premises' was changed in existing sections to remove the requirement that adjacent premises be 'owned' by the licensee - they now only need to be 'operated' by the licensee. The reference to 'musical or theatrical performance or concert' was simplified to just 'performance.'

Floor votes

How they voted

No floor votes recorded yet.

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Jun 19, 2025

Lower · Passed

Reported out of Assembly Committee with Amendments, 2nd Reading

lower

Jun 19, 2025

Committee

Recommitted to Assembly Housing Committee

lower

Mar 20, 2025

Lower · Passed

Reported out of Assembly Committee with Amendments, 2nd Reading

lower

Dec 12, 2024

Introduced

Introduced in the Assembly, Referred to Assembly Oversight, Reform and Federal Relations Committee

lower

2 primary · 5 co-sponsors