N.J. Lawmakers Consider Bills Expanding Alcohol Sale Rules

State lawmakers are considering a slew of alcohol-related bills that would expand the number of supermarkets that can sell liquor, allow towns to sell unused licenses to other municipalities, and let BYOB restaurants buy a license to sell beer and wine.

May 25, 2010

TRENTON, NJ - New Jersey lawmakers are considering several bills that would overhaul regulations on how beer, wine and liquor are sold in New Jersey, with some of the most dramatic reforms since the end of Prohibition, the Star-Ledger reports.

The legislation would expand the number of supermarkets that can sell liquor, allow cities and towns to sell unused liquor licenses to other municipalities and allow restaurants now restricted to BYOB to buy a restricted license that allows them to sell beer and wine.

"Our legislation is antiquated, and nothing has been done with it for 60 years," said state Senator James Beach, one of the lawmakers sponsoring the bills.

New Jersey's liquor laws are rooted in the post-Prohibition climate, when towns decided whether to become wet or dry after the repeal of the 18th Amendment in 1933.

"There was a temperance movement that wanted to restrict liquor licenses," said Mark Lender, chairman of Kean University's history department. "It was supposed to restrict the disorderly behavior that you found at saloons."

The proposed legislation would permit the sale of unused liquor licenses across city lines and create limited-use licenses by restaurants. Another measure would allow more grocery stores to sell alcohol by gradually expanding the number of licenses any one person or corporation could hold, from two to 10.

Some trade groups oppose the proposals, arguing that the legislation would reduce the value of liquor licenses already in existence while putting mom-and-pop liquor stores out of business.

"This would create an unlimited number of new licenses," said Deborah Dowdell, president of the New Jersey Restaurant Association. "We feel the entire liquor license system needs to be reviewed."

Additionally, liquor store owners fear that larger supermarket chains will sharply cut into their business.

"Nobody with one liquor store can compete with a grocery store that can sell alcohol as a loss leader just to bring people in," said Paul Santelle, president of the New Jersey Liquor Store Alliance.

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