N.J. Aims to Ease Liquor Laws

A series of proposals would dramatically change New Jersey's alcohol laws, with supporters maintaining the changes would create jobs and boost tax revenues.

April 19, 2011

CENTRAL JERSEY - New Jersey legislators are considering a series of bills that would introduce major changes to how alcohol is sold and served in the state, MyCentralJersey.com reports.

Among other things, the legislation would allow supermarkets to gain a piece of the state??s $2 billion a year alcohol market by increasing the limit on the number of liquor store licenses that a food retailer can own, from 2 to 10.

Another proposal would allow for the transfer of liquor licenses between municipalities, which isn??t possible now. Under the current system, a municipality can issue one restaurant or bar liquor license per 3,000 people and only one liquor store license per 7,500 people.

Supporters of the bills maintain they would create jobs and boost tax revenues, providing much-needed assistance to the state??s economy.

"The state is in such financial straits right now, this is a no-brainer," said Kitty Stillufsen, whose family owns Red's Lobster Pot, a dockside BYOB in Point Pleasant Beach.

However, the New Jersey Restaurant Association opposes the legislation, saying an influx of new beer and wine licenses would dilute the value of existing licenses.

"There are so many things tugging and pulling at the system, you have to be very careful about the legislation that's proposed," said Deborah Dowdell, the association??s president.

State Sen. James Beach, who introduced the supermarket and beer-and-wine license bills, said the changes are necessary to modernize an antiquated system that stifles development. The supermarket legislation, for instance, wouldn??t create new licenses, but it would allow food retailers to purchase licenses that aren??t being used or that come up for sale.

However, Jeffrey Warsh, general counsel of the New Jersey Wine and Spirits Wholesalers Association, said adding liquor stores inside supermarkets wouldn??t increase alcohol sales in the state, which have remained stable for decades. Rather, it would shift where those sales occur.

"In a sense, in many of these bills, the interests of the consumer are clearly outweighing the interests of public safety and jobs and tax collection in New Jersey," he said. "[Besides}, I've never had anyone visit me from out of state who says, "Man, where do you get alcohol in this state?'"

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