Extension of License at Death or Bankruptcy
How to Extend a NJ Liquor License if an Owner is Deceased?
There are certain unexpected events in our lives that can cause complications with a liquor license. Specifically, the unexpected death of an individual who owns a liquor license solely or as a shareholder in a company can cause issues with the Division of Alcoholic Beverage Control. In those instances were a license is owned solely by one individual and that individual passes, the licensed business must cease operations. The licensed business is prohibited from operating until the local issuing authority extends the license. Conversely, when a partner or stockholder dies the license can continue to operate subject to necessary amendments being filed on the application with the local issuing authority.
How to Extend a NJ Liquor License in Bankruptcy?
Alternatively, if a licensee, be it an individual or a business entity, goes into bankruptcy, receivership or any other insolvency proceedings, the license must be extended. In these instances, a Special Permit is typically issued by the Director of ABC to allow the business to operate until a trustee, receiver or other court-appointed person can be qualified by the court. Eventually this must be resolved with an application for an Extension of the License with the local issuing authority. When the licensee’s estate is settled or the insolvency proceedings are concluded, a person-to-person transfer from the executor, administrator, trustee, etc., to the person or persons legally entitled to the license at that point is required.
How Do I Get an Extension of License?
Pursuant to New Jersey regulation N.J.A.C. 13:2-6:
Petition for Extension of License
“In case of death, bankruptcy, receivership or incompetency of a licensee, or if for any other reason whatsoever the operation of the business covered by the license shall devolve by operation of law upon a person other than the licensee, the licensed business may not be operated unless the license is extended by the issuing authority which issued the license.
An application for extension of a license for a limited time not exceeding its term must be made in the form of a petition executed by the executor, administrator, trustee, receiver or other person upon whom operation of the business covered by the license shall have devolved by operation of law.
Said petition shall be addressed to and acted upon by the authority which issued the license sought to be extended. An amendment of the license application to reflect the extension of the license shall be filed at the same time. No fee is required to be paid for a license and the petitioner is not required to publish a notice of publication.”
Special Permit to Operate Licensed Business N.J.A.C. 13:2-6.2
Where an application for extension of license cannot be made immediately because the fiduciary has not yet qualified, the Director, Division of Alcoholic Beverage Control, may issue a special permit to allow the licensed business to continue to operations temporarily until the license is formally extended. The issuance of any special permit shall not indicate any opinion as to the merits of the formal petition to extend the petition.
ABC Liquor License Attorneys in New Jersey
For assistance in obtaining a Special Permit for an Extension of a License or representation in applying for a transfer of a liquor license, call (732) 858-5857. Our firm attorneys may be reached 24/7 for your convenience.