CSG Law Alert: New Jersey Makes Outdoor Dining Permanent
New Jersey has extended outdoor dining privileges for liquor licensees initially established during the COVID-19 pandemic and has made them permanent.
These temporary expansion permits were set to expire on November 30, 2024, but were made permanent when signed into law by Governor Phil Murphy on November 25. All COVID-19 Expansion of Premises permits issued by the New Jersey Division of Alcoholic Beverage Control (ABC) have been extended until November 30, 2025, pursuant to the new law. Licensees have been directed by ABC to print out a copy of their current permit and display it on their licensed premises. Licensees may also log into their POSSE online account to print out the new permit certificate.
Under the new law, the holder of a temporary expansion permit previously issued by the Division of ABC may apply to have the temporary permit converted to a permanent premises expansion permit. This permanent premises expansion permit will be renewable annually and will be issued by the Director of ABC following the approval of local officials. A licensee may also apply for a new premises expansion permit for the first time under the law.
The new law allows licensed restaurants, hotels, bars, clubs, cideries, distilleries and breweries to extend their licensed premises to certain outdoor spaces. Under the new law, owners and operators of these licensed businesses are permitted to use outdoor spaces that they own, lease, or otherwise control and are located on their business premises, contiguous to their business premises, or in a non-contiguous location as an extension of their business premises to sell alcoholic beverages.
A non-contiguous location used for outdoor dining must be within a reasonable proximity to the licensed premises, and the licensee must demonstrate a possessory interest and control over the property. By expanding the sale of alcoholic beverages to additional locations that are non-contiguous to the licensed premises, licensees can provide extended outdoor service of alcohol, grow their businesses, and create vibrant and attractive outdoor dining environments for patrons.
Permitted outdoor dining areas include patios, yards, decks, parking lots, public sidewalks, pedestrian walkways, and pedestrian malls to be used as an extension of the licensed premises. The new law also authorizes the continued use of shelters such as tents, canopies, and umbrellas in connection with outdoor dining.
An application for a premises expansion permit is filed with the Director of ABC, who may approve once the municipal clerk, police chief, and, in certain circumstances, a zoning officer have endorsed or approved the application.
For any questions about this new legislation and other matters impacting your business, please contact your CSG Law attorney or the authors of this alert.