Upon reading Acting Director James Graziano’s latest Special Ruling, SR 2020-10, the New Jersey Craft Alcohol Beverage Industry has been given some leeway to conduct operations outside of the normal licensed premises. The New Jersey Alcohol Beverage Control (“NJABC”) has issued a new permit, COVID-19 Expansion Permit to allow current licensees the ability to expand their premises until November 30, 2020. This memo explains the author’s thoughts and opinions on how to stay within the boundaries of the COVID-19 Expansion Permit and to avoid any issues with the NJABC or local law enforcement.
Before filing for the COVID-19 Expansion Permit, I urge every licensee to contact their insurance carrier to inquire about any additional policies or riders the licensee may need to allow for such an expansion.
SR 2020-10 allows for the expansion of a licensed premise into contiguous (touching) and non-contiguous (non-touching) locations to the current licensed premises. The NJABC states the permissible expansion areas: “decks, patios, sidewalks, and parking lots adjacent to or contiguous with the licensed premises, or parks, “parklets” established by a municipality, and other public rights-of-way.” Additionally, the licensee must have some possessory interest and control over the areas in which the licensee seeks to expand into. This will be harder for licensees that already do not own parking lots or have large amounts of property. I would recommend that if a licensee does not have a possessory interest in outdoor space or a parking lot, that the licensee should contact the landlord and seek written permission to use a portion of the parking lot/outdoor space. This will demonstrate that you have been granted permission and have a temporary possessory right to use that area.
NJABC sets out a list of application requirements for each licensee in order to file for the COVID-19 Expansion Permit. I will breakdown the ones that I feel are not as self-explanatory. The application requires a description of the property as well as a sketch or photographs of the property. To help save the licensee some time, I recommend looking at the lease for a description of the property or asking the landlord for a description of the property. A licensee can describe the area; however, be as detailed as possible. I also recommend taking photographs of the property over sketches as this will give NJABC a clear indication and evidence of what area you are using and the proximity to the licensed premises. I also recommend that in the pictures provided to the NJABC, a licensee indicates the area with a roped off section. For example, I do not recommend just taking pictures of the parking lot and showing the entrances/exits. I recommend using rope or movie theatre ropes to indicate the exact area the licensee is looking to use. If this is a parking lot, state how many parking spaces you are using as this will also indicate the size of the area. A licensee can also indicate the size through an exact measurement of the area as well.
The NJABC requires written approval/documentation from the property owner authorizing the temporary use of the expanded property. I suggest the licensee to ask for permission to use the area until the final date of November 30, 2020. I also recommend licensee present to the landlord the exact days and times the expansion is needed. This will allow the landlord to communicate to other businesses what is happening and to avoid conflict with any and all neighbors. Furthermore, it avoids any issues and arguments with the landlord as there is a potential of other businesses reopening and needing the use of the same location.
When dealing with alcohol, the licensee always has to have a security plan to prevent over-consumption, underage drinking, pass-offs, and protection of the health, safety, and well-being of each individual. First, the licensee must be in compliance with New Jersey Executive Order No.150. This Executive Order reiterates how to properly layout the premise. As stated in Executive Order No.150: remain in conformance with all applicable local, State, and Federal regulations; limit capacity so all patrons are six (6) feet apart from all others at all times, except those sharing a table; tables/seating six (6) feet apart in all directions; prohibit entrance/exiting indoor premises, except to use the restroom; require face coverings while using the indoor premises, unless the patron has a medical reason; and, prohibit smoking in any outdoor area designated for consumption. For a licensee to remain in compliance with the protocol, I recommend no more than 50% capacity for the outdoor area. I also highly suggest the licensee, if using tables/chairs, mark the areas where each table and chair needs to remain at all times.
Equally important to staying within the above stated protocol, it is highly recommended that licensees also implement the following security features: 1) ID checkpoint; 2) Temperature Checkpoint; 3) do not allow anyone under the age of 21 onto the premises; and 4) contactless service. The ID checkpoint will let the licensee know who is on the premises at all times and to ensure everyone is over the age of 21. The temperature checkpoint, even though it sounds counter intuitive, shows that the licensee is serious about keeping every person on the premises safe and healthy. Suggestion 1 correlates to suggestion 3 in a sense; however, suggestion 3 is to allow the licensee to maximize profits in a smaller space and to ensure that children/teenagers do not violate social distancing protocol. At the end of the day, the licensee is operating a business and needs to maximize profits, while still providing a safe area for people to congregate in. If a licensee does not agree with suggestion 3, I would like to demonstrate why suggestion 3 is utterly important right now. Imagine a licensee is granted the COVID-19 Expansion Permit, but is only allowed 30 people in the area at a time. Three (3) couples of legal age patrons, from the same family, come to the establishment and each couple has two (2) children. If the licensee allows all these people into the outdoor area, the licensee has already hit 40% capacity and will not maximize profits. During this time when licensees need to generate as much revenue as possible before the projected second wave of COVID-19 emerges, it is imperative that no person under the age of 21 be on the expanded premises. Suggestion 4, contactless service, I understand is very hard to implement; however, a patron does not need to stand at the service area and speak to the workers. It would a grab your beverage and continue to move. I also suggest that plastic/biodegradable cups be used to avoid any transmission of COVID-19.
Lastly, NJABC wants an acknowledgement that you have reviewed all applicable local and State safety and social distancing guidelines. This is as simple as typing out an acknowledgement and signing it. The licensee would also demonstrate this acknowledgement through implementation of the guidelines in their safety plan.