Less than two weeks after issuing it, the New Jersey Division of Alcoholic Beverage Control (NJABC) has suspended its Special Ruling that imposed new regulations on Limited Brewery Licensees. The Special Ruling released in late September included restrictions on, among other things, special events and entertainment at Limited Breweries. In its announcement, the NJABC stated that the suspension of the restrictions will provide the opportunity to engage in further conversations with craft breweries and other alcoholic beverage license holders about the impact of the Special Ruling. The NJABC is also poised to work with state legislators to determine whether new legislation is needed to update the law that prompted the Special Ruling. Michael D. DeLoreto, an Associate in the Gibbons Government & Regulatory Affairs Department, and Jennifer P. Smith, a Director in the Gibbons Real Property Department, authored this post. This blog also appeared on the Gibbons Government & Regulatory Affairs Alert on October 3, 2018.
Tagged: Liquor Licensing
“Operation Swill”: New Jersey ABC and Division of Criminal Justice Raid 29 Bars and Restaurants That Allegedly Served Cheap Alcohol as “Premium” Brands
On May 23, 2013, New Jersey’s Attorney General Jeffrey Chiesa and Division of Alcoholic Beverage Control (“ABC”) Director Michael Halfacre announced the details of “Operation Swill,” a year-long investigation involving more than 100 investigators throughout New Jersey. Operation Swill reached its climax one day earlier when ABC and Division of Criminal Justice personnel executed raids on 29 establishments throughout New Jersey suspected of substituting premium alcoholic beverage brands with “well brand spirits,” i.e., non-premium brands. N.J.A.C. § 13:2-23.19 prohibits a licensee from substituting another brand other than ordered by a customer unless agreed to by the customer. Approximately 1,000 bottles were seized during the raids, which will be held for further testing by the ABC and manufacturers.
On May 1, 2012, a law took effect that will allow New Jersey farmers and wineries to skip wholesalers and sell directly to retailers and consumers. The new law grants similar rights to out-of-state wineries and finally cleared the way for the Garden State to begin issuing new winery licenses to growers. While local business and political leaders are hoping the relaxed regulations will encourage further investment in the state’s wine industry, producers, retailers, and wine lovers alike are cheering the increased access to locally-grown wines ahead of the summer tourism season.
On January 17, 2012, Governor Chris Christie signed into law a bill allowing out-of-state winemakers to sell directly to New Jersey consumers and retailers. The bill was in response to the Third Court’s decision in Freeman v. Corzine, which we reviewed on this blog a year ago. The decision invalidated a New Jersey law allowing certain New Jersey farmers and wineries to skip wholesalers and sell directly to retailers and consumers. The Court determined that the law ran afoul of the Constitution’s Dormant Commerce Clause because it imposed restrictions benefiting in-state wineries and farmers at the expense of their out-of-state competitors. This new law is intended to balance the competing rights of in-state and out-of-state wineries.
Pennsylvania’s Alcohol Sale Privatization Debate: What Does It Mean for Retail Beer and Wine Sellers?
Pennsylvania’s state-run stores could be on the verge of losing their decades-old monopoly on wine and liquor sales. On December 13, 2011, the Pennsylvania House of Representatives’ Liquor Control Committee voted 15-10 to approve an amended version of Pennsylvania House Bill 11, (“Pa. H.B. 11”), which would allow the state’s 1,200 beer retailers to sell wine to the public, in competition with the Pennsylvania Liquor Control Board’s (“PLCB”) 620 state-run stores. Notably, large supermarket chains within the state stand to gain an enormous benefit from the proposed law, which would allow for the first time in-store wine sales, as well as limited in-store tasting events. The proposed legislation now sits before the full House, awaiting floor debate, additional amendments, and a possible vote. The process could begin as early as this month.
The time period to renew an expired New Jersey alcoholic beverage license is rapidly coming to a close and will end on November 8, 2010. Under a provision of the Alcoholic Beverage Control Act, N.J.S.A. 33:1-1 et seq., enacted earlier this year, a person holding an expired license, which was not renewed within the five years prior to May 6, 2010, may file for renewal of that license provided that (i) the applicant pay all renewal fees for the years in which timely renewals were not filed, and (ii) the applicant’s failure to apply for a renewal during that period was due to circumstances beyond his control or due to other extraordinary circumstances.