Permit Extension Act of 2020 Alters Timing for Applications for Development, and Extends Certain Existing Approvals During COVID-19 Public Health Emergency

Permit Extension Act of 2020 Alters Timing for Applications for Development, and Extends Certain Existing Approvals During COVID-19 Public Health Emergency

On July 1, 2020, Governor Murphy signed the Permit Extension Act of 2020, enacted as P.L. 2020, c. 53, a stand-alone piece of legislation modifying timelines for review of applications for development before the land use boards of the State of New Jersey and tolling existing development approvals that have been adversely affected by the COVID-19 public health emergency. This legislation ends a saga that saw the proposal of an amendment to the Permit Extension Act of 2008, which was enacted following the Great Recession; a conditional veto of that legislation; and the concurrence of both houses of the New Jersey legislature with the language of the conditional veto message. This new law will provide significant help to developers throughout New Jersey who were forced, whether by governmental order or economic infeasibility, to put projects on hold during the course of the present public health emergency. However, there are potential pitfalls of which developers should be aware, as set forth below, including a requirement that all state-level permits that developers wish to have extended be registered. The Permit Extension Act of 2020 provides as follows: Scope: Much like the original Permit Extension Act, this law serves to extend a wide...

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

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...

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

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...

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

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...

NJABC Issues Order Extending 2019-2020 License Term

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...

IRS Extends Deadlines for Section 1031 Exchanges and Investments in Qualified Opportunity Funds

IRS Extends Deadlines for Section 1031 Exchanges and Investments in Qualified Opportunity Funds

In response to the challenges faced by taxpayers as a result of the COVID-19 pandemic, the IRS issued Notice 2020-23 on April 10, 2020, which extends many tax filing and payment due dates to as late as July 15, 2020. Notably, this guidance includes deadlines associated with like-kind property exchanges under Section 1031 and investments in Qualified Opportunity Funds (QOFs) under the Qualified Opportunity Zone (QOZ) regime. A like-kind exchange is a tax-deferred transaction that allows for the disposal of an asset, typically real property, and the subsequent acquisition of another similar asset without generating capital gains tax liability from the sale of the initial asset. QOFs allow taxpayers to invest qualified capital gains into real property or businesses located in QOZs, and to defer and partially reduce taxation on the original capital gain while potentially eliminating all taxation on appreciation while in the QOF. Under Notice 2020-23, any person with a specified federal tax payment obligation or a federal tax return or other form filing obligation that would otherwise be due to be performed (originally or pursuant to a valid extension) on or after April 1, 2020 and before July 15, 2020 is deemed to be an affected taxpayer...

Relaxation of Notary Rules Allows Remote Notarization in New Jersey and New York

Relaxation of Notary Rules Allows Remote Notarization in New Jersey and New York

With some banks and municipal offices closed to walk-ins, non-essential employees working from home, and social distancing requirements in place, the ordinarily mundane task of having documents notarized has become much more challenging. The very act of taking an acknowledgment requires that the notary personally interact with the signatory, verify identity, and witness document execution. This, of course, is wholly inconsistent with the COVID-19 world in which we find ourselves. Although electronic (rather than pen and ink) notarization has become more common in many jurisdictions, few states permit online or webcam notarization where the person signing a document is not in the physical presence of the notary. As a result of COVID-19, the rules have been relaxed in New Jersey and New York in order to permit video notarization in some instances. New Jersey New Jersey is utilizing a legislative process to amend the Notaries Public Act of 1979 (the “Act”). A bill designated as A-3903 was signed into law on April 14, 2020, as P.L. 2020, ch. 26. It takes effect immediately and will remain in effect for the duration of the COVID-19 emergency as declared by the Governor in Executive Order 103. It provides that a notary appointed...

NJABC Relaxes Additional Regulations in Response to COVID-19 Crisis

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...

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

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...

New Jersey Issues Guidance to Assist Land Use Boards in Holding Electronic Meetings and Hearings

New Jersey Issues Guidance to Assist Land Use Boards in Holding Electronic Meetings and Hearings

In the wake of Executive Order 103 declaring the COVID-19 public health emergency and Executive Order 107 concerning restrictions on public gatherings, most planning boards and zoning boards of adjustment in New Jersey cancelled their scheduled meetings and have since been evaluating how to resume meeting in a manner that complies with social distancing requirements and Executive Order 107. This has left applicants uncertain when and in what manner their applications for development will be considered and decided. Following enactment of emergency legislation to facilitate the conduct of electronic meetings, the New Jersey Department of Community Affairs, Division of Local Government Services, has issued guidance to specifically assist planning boards and zoning boards of adjustment with conducting public hearings electronically on applications for development. The guidance, titled “Planning Board and Zoning Board of Adjustments Operational Guidance – COVID-19: N.J.S.A. 40:55D-1, Recommendations for Land Use Public Meetings in New Jersey,” is a first step in assisting land use boards – some of which have been hesitant to begin holding “virtual” meetings – with the mechanics of arranging for and conducting electronic meetings and public hearings. The Municipal Land Use Law (MLUL) requires land use boards to hold meetings at least monthly. Such...