Governor Murphy recently signed legislation (S-3944/A-5125), which provides that certain nonprofit corporation alcoholic beverage theater licenses include disregarded entities of such corporations and allows certain community theaters to sell alcoholic beverages. Specifically, the law clarifies that holders of plenary retail consumption licenses for nonprofit art house movie theaters include “disregarded entities” of certain nonprofit corporations that are single member limited liability corporations disregarded for federal income tax purposes pursuant to 26 C.F.R. Part 301. 

The law expands the license from art-house movie theater to include operations of theatrical productions or other public entertainment events for which an admission is charged. The law defines “performance” to include the showing of any motion picture, musical concert, theatrical play, dance recital, literature reading, or other artistic or cultural exhibition. A public entertainment event includes a sporting event, a simulcast, or other social, charitable, or athletic event.  

In addition, the law permits a governing body, upon Division of Alcoholic Beverage Control approval, to issue a plenary retail consumption license to an eligible business entity operating as a community theater for which admission is charged if they meet one of the following requirements: 

• The space within the premises that are used for showing performances of musical concerts, theatrical plays, dance recitals, literature readings, or other artistic or cultural exhibitions contain one or more stages with viewer seating areas having a total seating capacity of at least 50 people but not more than 1,000 people and do not contain any movie screens for showing performances of motion pictures.  
• The space within the premises that are used for showing performances of motion pictures contains no more than five movie screens with viewer seating areas having a total seating capacity of at least 50 people but not more than 600 people. 
• The space within the premises that are used for showing performances have a total seating capacity of at least 50 people but not more than 1,500 people, contains at least one but not more than five movie screens for showing motion pictures, and contains at least one stage for showing musical concerts, theatrical plays, dance recitals, literature readings, or other artistic or cultural exhibitions.  The seating capacity of the viewer seating areas located in the space or spaces with a stage shall constitute at least 25% of the total seating capacity.  

The license will permit the sale of alcohol only during the one hour immediately preceding a performance and during the performance, including intermission.  

A license issued under this new law will not count towards the number of licenses a municipality may have under the population formula.  

P.L. 2025, c. 131 took effect on August 21, 2025. 

Contact: Lori Buckelew, Deputy Executive Director, lbuckelew@njlm.org, 609-695-3481, x112.