Author: Brendan J. Kelly

New Jersey Adopts Private Construction Inspection Bill

On January 5, 2023, New Jersey Governor Phil Murphy signed into law Assembly Bill 573, which authorizes private inspections under the State Uniform Construction Code (UCC) Act, upon the satisfaction of certain conditions (the “Act”). The New Jersey Department of Community Affairs (DCA) now has six months to propose rules to effectuate the provisions of the Act and three months thereafter to adopt those rules. The Act is a result of efforts throughout the commercial real estate industry to address the growing shortage of available municipal code inspectors and recent increased demand for inspections due to the high frequency of construction activity throughout the state, as well as an ongoing backlog due to COVID-19 staffing shortages. There is consensus within the industry that the processes codified within the Act will minimize project disruptions and delays and create a more streamlined construction inspection process, in order to expedite the timely construction and occupancy of inclusionary housing and non-residential development alike. The Act creates a new process by which private inspectors can perform required construction inspections under the UCC. Once work undertaken pursuant to a construction permit is ready for any required inspection under the UCC, the owner, agent, or other person in charge of the work (collectively, the “Owner”) shall notify the enforcing agency (presumably the...

New Jersey Adopts 2021 International Building Code and Grace Period for Permit Applications

The New Jersey Department of Community Affairs (DCA) has recently amended the Building Subcode of the Uniform Construction Code (UCC) to incorporate the 2021 Edition of the International Building Code (IBC). Builders, developers, and others currently applying for construction permits should be aware of the provision within the UCC that provides for a grace period from application of the newly adopted regulations until March 6, 2023. On April 18, 2022, DCA posted in the New Jersey Register proposed amendments to the Building Subcode, located within the New Jersey Administrative Code at N.J.A.C. 5:23-3.14, to incorporate the 2021 Edition of the IBC. The model codes for buildings, which include residential and commercial structures, energy, fire protection, mechanical, and fuel gas, are published by the International Code Council, and DCA proposes and adopts the model codes as part of the UCC. Since 1996, DCA has undertaken a review of each subsequent model code edition and has proposed and adopted the new edition of the national model codes. The most recently adopted amendments to the UCC’s Building Subcode incorporate the 2021 edition of the IBC. The Building Subcode amendments were adopted on September 6, 2022. Of particular importance to builders and developers, the UCC contains a grace period provision at N.J.A.C. 5:23-1.6, which provides that for a period...

NJABC Extends Time Period for COVID-19 Expansion Permit

On October 19, 2020, the New Jersey Division of Alcoholic Beverage Control (“Division”) issued a new special ruling (the “October Special Ruling”) that allows the currently issued COVID-19 Expansion of Premises Permit (“COVID-19 Expansion Permit”) to be extended to March 31, 2021. We previously discussed the Division’s special ruling issued on June 3, 2020 (the “June Special Ruling”) that coincided with Governor Murphy’s Executive Order No. 150, which allowed licensees or permittees with on-premises retail consumption privileges to reopen and serve patrons in “outdoor areas.” The COVID-19 Expansion Permit established through the June Special Ruling allowed licensees and permittees to expand their licensed premises into outdoor areas, either contiguous or non-contiguous to their permanently licensed premises. Applications for an extension of the COVID-19 Expansion Permit will be available later this month and must be submitted no later than November 23, 2020. The June Special Ruling originally set the expiration of the COVID-19 Expansion Permit as November 30, 2020. However, due to the continuing effect of the COVID-19 pandemic on the alcoholic beverage industry, and the continued requirements for indoor capacity limits and social distancing, the Division found it appropriate to allow licensees to apply to renew the COVID-19 Expansion Permits. The Division noted that, to date, it has issued more than 2,300 COVID-19 Expansion Permits....

Issues for NJ and NY Retailers and Food and Beverage Establishments to Consider Upon Reopening for Outdoor Sales and Service

On June 3, 2020, New Jersey Governor Phil Murphy signed Executive Order No. 150 (the “Order”), which permitted, effective June 15, 2020, restaurants and other food and beverage establishments to offer on-site outdoor service. The Order also allowed municipalities to make outdoor shared spaces, such as sidewalks and streets, available to these establishments. Previously, these establishments had been limited to offering take-out services as a result of executive orders issued in response to the ongoing COVID-19 health emergency. Simultaneous with the issuance of the Order, the New Jersey Division of Alcoholic Beverage Control (NJABC) issued a special ruling to create a COVID-19 Expansion of Premises Permit (the “Special Ruling”). We discussed the special ruling here. Similarly, the State of New York – on a region-by-region basis – is entering Phase 2 of its reopening plan in response to the COVID-19 health emergency, and the New York State Liquor Authority (NYSLA) issued guidance to permit liquor licensees with on-premises service to resume outdoor, on-premises service of alcoholic beverages and food. We discussed the guidance here. In sum, both states have taken significant steps to provide relief to business establishments that have been hurt by the COVID-19 health emergency. These measures allow establishments to return to some semblance of normal operations. There are, however, still many unanswered...

New York State Liquor Authority Issues Guidance on Outdoor Expansion of Licensed Premises for Phase 2 Reopening

On June 4, 2020, the New York State Liquor Authority (SLA) issued guidance to licensees in regions of the state of New York that have entered Phase 2 of the state’s reopening plan in response to the COVID-19 health emergency (“SLA Guidance”). The SLA Guidance applies to licensees that possess on-premises service privileges under New York’s Alcoholic Beverage Control Law (“ABC Law”), and it permits these licensees to resume outdoor, on-premises service of alcoholic beverages and food. The SLA Guidance, summarized below, shall remain in effect until July 6, 2020 and may be extended or reduced depending on the circumstances. It specifically provides guidance on how outdoor consumption shall be implemented and how licensees may expand the licensed premises into outdoor spaces, and it also includes a question and answer (Q&A) section that provides guidance to municipalities seeking to extend licensed premises. Outdoor Consumption The consumption of food and alcoholic beverages must occur in outdoor, open-air areas without fixed roofs, and patrons are required to be seated at tables, bars, counters, or similar contrivances. The Q&A section provides that a fixed roof is any overhead structure covering an outdoor seating area that would not reasonably be viewed as temporary. Awnings or covers that are temporary or seasonal are therefore permitted. Social distancing measures must be...

NJABC Issues Special Ruling Creating COVID-19 Expansion Permit and Provides Guidance on To-Go Cocktails

Earlier this month, the New Jersey Division of Alcoholic Beverage Control (“Division”) issued a special ruling to create temporary COVID-19 permits to expand licensed premises and an advisory notice regarding cocktails-to-go. These are summarized briefly below. Special Ruling Establishing Temporary COVID-19 Permit to Expand Licensed Premises This special ruling issued on June 3, 2020 establishes a COVID-19 Expansion of Premises Permit (“COVID-19 Expansion Permit”) to coincide with Executive Order No. 150, which allows licensees or permittees with on-premises retail consumption privileges to reopen and serve patrons in outdoor areas. The COVID-19 Expansion Permit allows the licensees and permittees to expand their licensed premises into outdoor areas, either contiguous or non-contiguous to their permanently licensed premises. All licensees and permittees with on-premises retail consumption privileges may apply for this permit, but no permit issued would be effective before June 15, 2020. The special ruling sets forth certain criteria that must be met for issuance of the COVID-19 Expansion Permit. In all cases, the licensee is required to demonstrate that it has a possessory interest and control over the expansion areas, and that it will exercise only the same privileges afforded to it on its existing licensed premises. For example, licensees that offer food service on their licensed premises must do so on the expanded premises. Any...

NJABC Issues Order Extending 2019-2020 License Term

The Division of Alcoholic Beverage Control (the “Division”) issued an order on April 13, 2020, extending the 2019-2020 license term for all municipally-issued and state-issued licenses until September 30, 2020. Under the Alcoholic Beverage Control Act (the “Act”), local governing bodies (known as local issuing authorities) have the authority to issue and renew retail licenses. These retail licenses are in effect for a one-year term, beginning on July 1 of each year. In certain instances, the licenses can also be extended by the Division through ad interim permits. The licenses for the 2019-2020 term were set to expire on June 30, 2020. The Division, rather than local issuing authorities, issues and renews wholesale and manufacturing licenses and associated permits, known as State-issued licenses, which have the same license term as retail licenses. These State-issued licenses include, but are not limited to, Plenary, Limited, and Restricted Brewery Licenses and Plenary, Limited, and Craft Distillery Licenses. Some associated State-issued permits include, but are not limited to, Special Concessionaire Permits, Sampling Permits, Consumer Tasting Permits, and Off-Premise Storage of Records Permits. These State-issued licenses and permits were similarly set to expire on June 30, 2020. Due to the COVID-19 crisis and its associated consequences, the Division found that many licensees will be unable to renew their licenses by...

NJABC Relaxes Additional Regulations in Response to COVID-19 Crisis

On April 7, 2020, we published a blog explaining the guidance and forms of relief recently provided by the New Jersey Division of Alcoholic Beverage Control (“Division”) to liquor license holders throughout the state. The issued guidance and relief pertain to operations of alcoholic beverage licensees and permittees during the state of emergency declared to address the COVID-19 crisis. Since that time, the Division has issued three new special rulings to address additional COVID-19 related issues. Each special ruling is summarized briefly below. Special Ruling Granting Relaxation of Signature Requirement, Product Returns, Credit, Notices of Obligation, and Bill and Hold This special ruling grants relaxation of several regulations promulgated under the Alcoholic Beverage Control Act (the “Act”), as well as under a previous special ruling. Signature on Invoices: To comply with social distancing protocols, the Division temporarily suspended the requirement that a licensee must sign and date a delivery slip, invoice, manifest, waybill, or similar document at the time of delivery of any alcoholic beverage by a licensed manufacturer, importer, or wholesaler. It sets forth acceptable alternative methods for signature, which includes methods like sending a contemporaneous email confirming receipt, photographing the invoice and confirming electronically with the wholesaler, or using the retailer’s own pen to acknowledge receipt. This modification runs through the period of...

NJABC Issues Guidance and Provides Relief to Certain Licensees and Permit Holders During COVID-19 Crisis

The COVID-19 pandemic has presented unforeseen challenges to countless businesses across the country. Businesses that serve alcoholic beverages for on-premises consumption have been hit particularly hard. Through Executive Order No. 107 (the “Order”), and in connection with the declared State of Emergency, New Jersey Governor Phil Murphy imposed certain restrictions on restaurants and bars. On March 30, 2020, the State of New Jersey Division of Alcoholic Beverage Control (“Division”) issued Advisory Notice 2020-03, which outlines the Division’s interpretation of the Order and provides guidance to licensees concerning the activities in which they may engage in during the COVID-19 crisis. All license holders in the state should review the advisory notice in full, in addition to some of the major points outlined below. Following those points is an explanation of the special ruling regarding Limited Brewery License holders that was issued by the Division concurrently with the advisory notice, and a summary of some recent changes in protocol for interactions with the Division and its staff. Lastly, there is a brief summary of the April 1, 2020 order issued by the Division authorizing the extension of certain alcoholic beverage permits. Advisory Notice 2020-03 Retail consumption licensees: Bars, restaurants, or other establishments holding retail licenses may be open during this time and sell alcoholic beverages in their...

Is Your Property Historic? You Might Not Think So, But Always Check!

In a state like New Jersey, land in urban or developed areas is often at a premium, and developers will need to be mindful of whether the property has any historical significance. In addition to the standard approvals required from local planning or zoning boards, one approval that is commonly overlooked is that of the local historic preservation office or commission. These entities are authorized under the Municipal Land Use Law, N.J.S.A. 40:55D-107 et seq., and are now common in municipalities large and small throughout New Jersey. Where a formal commission exists, applications for development are to be referred to the historic preservation commission for review whenever applications involve property in historic districts or on historic sites identified by the official map or master plan. In other municipalities, there may be an application and approval process separate from the typical land development board. Some are required as part of completeness obligations for applications for development, where others are a separate process from the typical application for development. One active historic preservation commission has been the City of Newark’s Landmarks and Historic Preservation Commission (the “Commission”). This article provides a brief primer on when Commission approval is required, and what developers can expect during the application and approval process in the City of Newark (“the City”)....