New NJ Law Lets More Nonprofits Serve Liquor; Montclair Ahead Of Curve

MONTCLAIR, NJ — Montclair was barking up the right tree when the town council recently issued a liquor license to a local theater nonprofit, according to a statement from the governor’s office.

In June, the Montclair Township Council unanimously voted to pass a resolution that approves a theater exception license for plenary retail consumption to Montclair Film at the Claridge LLC, the nonprofit that spearheads the town’s annual film festival. Read More: Montclair Grants New Liquor License (Here's Who Got It)

Montclair – like other towns in New Jersey – has a high bar when it comes to capturing a coveted liquor license. However, state law allows a township to issue a plenary retail consumption license to a nonprofit corporation which “regularly conducts musical or theatrical performances or concerts for which admission is charged,” without regard to population limitations.

It turns out that Montclair was barking up the right tree, according to a recent news release from Gov. Phil Murphy.

On Friday, the governor signed S-3328 into law, paving the way for the issuance of alcoholic beverage retail licenses for nonprofit movie theaters that “enrich their local communities by promoting the arts.”

The legislation will expand existing law – which allows municipalities to issue a plenary retail consumption license to nonprofit corporations that conduct musicals, theatrical performances, or concerts – to allow licenses to be issued to nonprofit art house movie theaters, as well.

According to the governor’s office:

“The holder of this special license, known as a ‘theater license,’ may serve alcoholic beverages for consumption on the licensed premises during the performance, as well as two hours prior and two hours immediately following the performance, with the exception of certain smaller theaters where the amount of times they can serve alcohol during the two-hour post-show window is limited to 15 events per year. Unlike plenary retail consumption licenses for bars and restaurants, theater licenses are not subject to the same population restriction, which limits one license for every 3,000 residents in a municipality, a Prohibition-era restriction that Governor Murphy has proposed eliminating in the interest of affordability, equity, and economic development.”

“Nonprofit theaters provide a world of good to our communities, but like so many other industries they have been faced with challenges, particularly since the pandemic,” Murphy said.

“Treating them the same as nonprofit corporations conducting musicals or theatrical performances and allowing them to serve alcohol will enhance the entertainment experience for theater-goers, while [also] enhancing their bottom line to ensure they remain afloat and continue to benefit our communities,” he added.

Send local news tips and correction requests to eric.kiefer@patch.com. Learn more about advertising on Patch here. Find out how to post announcements or events to your local Patch site. Don’t forget to visit the Patch Montclair Facebook page.