newjerseynewsroom.com

Group believes proposed law would make it easier for underage drinking

BY TOM HESTER SR.

NEWJERSEYNEWSROOM.COM

Assembly Budget Committee Chairman Louis Greenwald (D-Camden) Tuesday announced he has reintroduced legislation to allow the sale of beer, liquor and wine in supermarkets.

The measure has been strongly opposed by the New Jersey Liquor Store Association since Greenwald initially introduced the measure (A-2591) four years ago. The organization, which represents 1,100 of New Jersey's 1,780 liquor store owners, argues that placing alcohol in supermarkets would make it easily available to employees under age 21.

The bill, tagged the "New Jersey Grocery Store Economic Development Act," would gradually expand the sale of beer, wine and other alcoholic beverages into supermarkets that opt to provide it. Current state laws only permit two liquor licenses per company or individual.

The bill was originally proposed, impart, as part of an unsuccessful effort to lure a supermarket to Camden where none exist.

"These laws are holdovers from a bygone era when only ‘mom and pop' corner stores existed," Greenwald said. "My legislation will move our state's liquor licensing laws into the 21st century, creating jobs and stimulating the economy while correcting arcane quirks in our laws."

The legislation would not increase the number of liquor licenses a city or town may issue; instead, it would ease what Greenwald sees as an overly restrictive cap on businesses and promote economic growth and job creation.

Greenwald said the legislation would assist businesses and struggling municipalities looking to promote economic growth.

"Just as we worked to cut red tape and modernize the state's automobile insurance laws, we must now work to ensure our state's grocery stores aren't held back by liquor licensing laws crafted for a totally different era," he said. "This legislation will stimulate local economies while providing revenue for our towns and cities."

Paul Santelle, Liquor Stores Association president, owner of Perth Amboy-based Garden State Liquors, and a 18-year member of the state Division of Alcoholic Beverage Control advisory board, said his organization has repeatedly argued against the proposal, citing accessibility to minors as the chief reason.

"It's an ugly bill and the polar opposite of what Greenwald is spinning,'' he said. "There is nothing archaic about the law. We are not dealing with accessibility to milk, butter and eggs. This is about alcohol and accessibility. How many people work in grocery stores that are under 21? Fifty percent. And how many of those people are under 18? Fifty percent.''

Santelle said allowing alcohol in supermarkets would force nearby liquor stores out of business and cost jobs.

Santelle also said Greenwald has never approached the ABC for its view on the bill. He charged the bill should be reviewed by the Assembly Law and Public Safety Committee instead of the Regulatory, Oversight and Gaming Committee where it is pending. He also said law enforcement questions the need for the bill.

Santelle said 35 states presently allow the sale of beer in supermarkets and less than 20 allow the sale of liquor.

Here is how Greenwald describes the bill:

• It would gradually increase the current cap of 2 licenses per company or person to 10 over a 10-year period
• Promote economic growth and better community access to alcohol, encouraging growth of grocery stores in traditionally underserved communities
• Levy a 10 percent transfer fee to be paid to municipalities by those purchasing licenses, providing property tax relief to residents
• Provide an incentive for supermarket retailers that have been growing in other states with less restrictive licensing laws to invest and create jobs in New Jersey
• Maintain appropriate balance of liquor licenses, by not increasing the number of licenses a municipality may issue

Greenwald said the antiquated two liquor license cap was created nearly 50 years ago to combat price fixing and to fight organized crime. He said removing the cap would create greater return on existing licenses and could represent millions of dollars to an existing owner looking to sell a license.

In addition, the Assemblyman said, lifting the cap will open up the market and allow businesses who are at the current two license cap to purchase inactive licenses, which currently have little to no demand because of the cap.

Greenwald called the current cap on grocers "unnecessary, unfair, and overly restrictive" on trade. "In today's tough economic times, we should do everything we can to create jobs and promote economic growth. By cutting regulatory red-tape, we will do just that," he said.