Gov. Murphy Suggests Loosening Liquor License Rules
New Jersey Governor Phil Murphy is proposing a significant change to the state’s approach to liquor regulation. He wants to ease the restrictions on liquor licenses that have created $1 million-plus barriers to entry for potential bar owners in some communities.
This all comes after a year where local breweries have exploded over the state.
During his State of the State speech on Tuesday, Governor Murphy suggested that the state should gradually ease the restriction on liquor licenses by loosening the population cap. As of now, local governments are limited to issuing one license for every 3,000 residents. However, the Governor proposed a plan to relax this rule and eventually remove it altogether.
Gov. Murphy Suggests Loosening Liquor License Rules
According to the Governor’s prepared remarks, the goal is to create upwards of 10,000 jobs annually and generate up to $10 billion in new economic activity and $1 billion in new state and local revenues.
The Governor did not specify a timetable for relaxing the requirement, but he did mention that municipalities would still retain local control. This would allow them to maintain the character that makes their downtown areas so special.
Murphy also mentioned a tax credit for businesses that currently have liquor licenses.
Governor Murphy is also planning to remove licensing and operating restrictions on craft breweries, distilleries and wineries, which he deems as “outdated”. However, he did not give any specific information on the changes that would be made.
Previously, the Division of Alcoholic Beverage Control in the state has implemented limitations on events and collaborations with food trucks or vendors for these facilities. The Governor did not mention if he would be endorsing any already proposed legislation to loosen these restrictions.
Governor Murphy believes this move will help keep the “renaissance” of New Jersey’s food and drink scene going. He said “People from all across the Northeast, and indeed from across the country, are coming to taste what is being poured from bottles, taps, and barrels across New Jersey.
They are coming to enjoy one of the best and most diverse restaurant scenes of any state. It is absolutely imperative that we keep this renaissance going.”
The proposal to ease restrictions on liquor licenses could potentially lead to an increase in job creation and economic activity in the state. The Governor’s plan would make it easier for small business owners to enter the market and provide more options for customers.
However, it remains to be seen how the proposal will be received by municipalities, and if the Governor will provide more details on how the restriction will be gradually relaxed.
For those who want to watch his State of the State address, hit play on the video below.
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