Alcohol laws of New Jersey

Location of New Jersey

The state laws governing the control of alcohol beverages in New Jersey are among of the most complex in the United States of America and contain many peculiarities not found in other states. State law provides for 29 distinct liquor licenses granted to manufacturers (i.e. wineries, breweries, distilleries, blenders), wholesalers, retailers (i.e. restaurants, bars, liquor stores, hotels, theatres, clubs), and for the public warehousing and transporting of alcoholic beverages. General authority for the statutory and regulatory control of alcoholic beverages rests with the State government, particularly in the Division of Alcoholic Beverage Control overseen by the state's Attorney General.

Because of the state's adherence to the principles of home rule, New Jersey law gives individual municipalities substantial discretion in creating ordinances to regulate the sale and consumption of alcoholic beverages within town limits. The number of retail licenses available is determined by a municipality's population and is often further limited by the town's governing body. Given this, the availability of alcohol and the regulations governing it vary greatly from town to town. Several towns in the state are "dry towns" that do not allow alcoholic beverages to be sold and do not issue retail licenses for bars, liquor stores, or for restaurants to serve alcohol to patrons. Comparatively, other towns permit alcohol sales 24 hours a day. Retail licenses tend to be difficult to obtain, and when available are subject to high prices and fierce competition.

New Jersey has a history of taverns and alcohol production dating to its early colonial history. Early colonial winemakers received recognition by the Royal Society of Arts for producing quality wine and a local distillery owner was asked by George Washington for its recipe for "cyder spirits". Throughout the nineteenth and early twentieth centuries, the industry developed with the influx of European immigrants—specifically German and Italians—who presented a sizeable market for alcoholic beverages and brought with them old world brewing and distilling techniques.

With the rise of the temperance movement culminating in the enforcement of Prohibition (1919-1933), New Jersey's alcohol industry suffered and many breweries, wineries and distilleries either closed or relocated to other states. The legacy of Prohibition restricted and prevented the recovery until the state legislature began loosening restrictions and repealing Prohibition-era laws starting in 1981. Today, New Jersey's alcohol industry is experiencing a renaissance, and recently-enacted laws provide new opportunities for the state's wineries and breweries.

Controlling authority

Statewide statutes and enforcement

New Jersey's laws and regulations regarding alcohol are overseen by the Department of Law and Public Safety's Division of Alcoholic Beverage Control (ABC), which is managed by the state's Attorney-General. As of 2013, the current director of this Alcohol Beverage Control division is Michael I. Halfacre. The 21st Amendment to the United States Constitution, which ended the Prohibition in 1933, permitted the states to regulate matters related to alcohol. New Jersey did so with the Alcoholic Beverage Control Law, which has been codified as "Title 33" of the New Jersey Statutes under the title "Intoxicating Liquors". These laws are expanded through administrative regulations in Title 13, Chapter 2 of the New Jersey Administrative Code.

New Jersey's statutes define an "alcoholic beverage" as "any fluid or solid capable of being converted into a fluid, suitable for human consumption, and having an alcohol content of more than one-half of one per centum (1/2 of 1%) by volume, including alcohol, beer, lager beer, ale, porter, naturally fermented wine, treated wine, blended wine, fortified wine, sparkling wine, distilled liquors, blended distilled liquors and any brewed, fermented or distilled liquors fit for use for beverage purposes or any mixture of the same, and fruit juices."

Municipal control

Marketing itself as a safe, "family resort" town, Ocean City, on the New Jersey shore, was founded in 1879 by four Methodist clergymen as a "dry town". To this day, Ocean City prohibits the sale of alcohol and has not issued a liquor license.

New Jersey is a state that offers considerable home rule powers to its incorporated municipalities. New Jersey's laws give considerable authority to municipalities regarding licensing and regulating of businesses serving or selling alcohol and in coordinating this with the town's planning authority and local zoning ordinances. These powers include:

• limiting the number of licenses to sell alcoholic beverages at Retail (Class C license)
• limiting the hours between which the sale of alcoholic beverages at retail may be made
• prohibiting the retail sale of alcoholic beverages on Sunday
• regulating the conduct of any business licensed to sell alcoholic beverages at retail
• regulating the nature and condition of the premises upon which any such business is to be conducted
• to may make, enforce, amend and repeal such ordinances as it may deem necessary to prevent the possession, sale, distribution and transportation of alcoholic beverages within its municipality
• placing limits of no more than one retail license shall be granted to any person in said municipality
• limiting a license to cover only the specific licensed premises
• allow municipalities with populations of 15,000 or more to appoint a municipal alcoholic beverage control board of three persons with terms for three years.

Retail (for consumption or distribution) licenses are allocated in proportion to a municipality's population. Licenses permitting on-premises retail sale and consumption of alcoholic beverages (i.e. bars and restaurants) are allocated at a ratio of one license for 3,000 residents. A "package goods" license (a distribution license) is available at a ratio of one license per 7,500 residents. However, statutes permit the allocation of a minimum of one consumption and one distribution license to small towns with populations less than 1,000. Given the regulatory latitude these municipalities exercise, the actual number of licenses extant in a municipality may be more or less depending on a variety of factors, including:

• whether the municipality's existing licenses were subject to being grandfathered in by having existed before the 1948 imposition of statutory limitations or new alcohol control ordinances
• or if the town decides to offer fewer licenses
• or if a town decides by ordinance or referendum to become a "dry town"—that is, to prohibit the public consumption or distribution of alcoholic beverages within town limits

Because of the law gives significant latitude in a municipality's regulatory powers, As of 2013, 37 of the state's 565 municipalities are "dry towns" that prohibit the sale alcohol. Conversely, because of the grandfathering of licenses, several municipalities have a substantially higher ratio of licenses. For instance, South Amboy, in Middlesex County, has 22 active liquor licenses, the most per capita in the United States. In 1981, the town had 37, one for every 218 residents.

Other authorities

Casinos in Atlantic City and federal enclaves (e.g., military bases, national parks) are not under the jurisdiction of either the Division of Alcoholic Beverage Control or municipal alcoholic beverage control boards. The New Jersey Casino Control Commission and the New Jersey Division of Gaming Enforcement are responsible for the regulation of alcoholic beverages at casinos. Per Article I, Section 8, Clause 17 of the United States Constitution, the federal government may "exercise like authority over all places purchased by the consent of the legislature of the state in which the same shall be, for the erection of forts, magazines, arsenals, dockyards, and other needful buildings." While some state laws do apply in federal enclaves, court decisions have generally exempted military bases and other federal lands from state and local alcohol laws.

Liquor licenses and permits

New Jersey law provides for 29 distinct liquor licenses divided into five classes, as follows: Class A for manufacturers, Class B for wholesalers, Class C for retailers, Class D for transportation licenses, and Class E for public warehouses. State law allows the Division of Alcoholic Beverage Control to create temporary permits "to provide for contingencies where it would be appropriate and consonant with the spirit of this chapter to issue a license but the contingency has not been expressly provided for." Special permits are allowed to range in price from $10 to $2000, are limited to 25 days per year for a given premises, and currently there are 3 types of permits for non-licensees.

Class A manufacturer's licenses

Type of License	Activity permitted	Fee for license
Plenary Brewery License	to brew any malt alcoholic beverage to sell and distribute to wholesalers and retailers in the state to sell and distribute out of state to maintain a warehouse	$10,625
Limited Brewery License	to brew any malt beverage, not in excess of 300,000 barrels (31-gallon barrels) per year to sell and distribute to wholesalers and retailers in the state to sell and distribute out of state as part of a tour, sell beer for on-site consumption offer free samples of up to 4 ounces sell up to 15.5 gallons of beer (i.e., a keg) for consumption off-premises sale of food is absolutely prohibited to maintain a warehouse	$1,250 for up to 50,000 barrels $2,500 for 50,000-100,000 barrels $5,000 for 100,000-200,000 barrels $7,500 for 200,000-300,000 barrels
Restricted Brewery License	to brew no more than 10,000 barrels per year only for persons with a Plenary Retail Consumption License, and a dining facility limit of 10 licenses to be held by a person offer free samples of up to 4 ounces may sell on-premises, to wholesalers, or at festivals	$1,000 for first 1,000 barrels $625 for each additional 1,000 barrels.
Plenary Winery License	3 acres minimum required to produce any fermented wines, blend, fortify or treat wines to sell or distribute to wholesalers, directly to retailers, or to churches within New Jersey for religious purposes to sell and distribute outside the state to maintain a warehouse offer samples for sampling or promotional purposes to sell at retail to consumers on the winery premises to operate 15 off-premises sales rooms to direct ship up to 12 cases per year to consumers in or out of state	$938 annual fee $250 for each offsite salesroom to sell to retailers: $100 for up to 50,000 per year $250 between 50,000 and 100,000 gallons $500 between 100,000-150,000 gallons $1,000 up to 250,000 gallons.
Farm Winery License	to produce up to 50,000 gallons of wine per year requires that products contain minimum 51% of grapes or fruit grown in New Jersey to sell or distribute to wholesalers, or to churches for religious purposes within New Jersey to sell and distribute outside the state to maintain a warehouse offer samples for sampling or promotional purposes to sell at retail to consumers on the winery premises 3 acres minimum required to operate 15 off-premises sales rooms right to sell direct to retailers to direct ship up to 12 cases per year to consumers in or out of state	$375 for 30,000-50,000 gallons per year $250 for 2,500 to 30,000 gallons $125 for 1,000-2,500 gallons $63 for less than 1,000 gallons $100 fee for right to sell to retailers $250 fee per offsite salesroom
Wine Blending License	to blend, treat, mix, or bottle wines to sell or distribute to wholesalers or retailers to maintain a warehouse	$625
Instructional Winemaking Facility License	to instruct consumers in winemaking with the opportunity to participate directly in winemaking to maintain a warehouse	$1,000
Out-of-State Winery License	requires a valid winery license in another U.S. state requires that winery no more than 250,000 gallons produced per year right to sell and distribute in New Jersey to operate up to 16 off-site salesrooms right to ship up to 12 cases per year to consumers in or out of state right to sell directly to New Jersey retailers	$938 annual fee $250 for each offsite salesroom to sell to retailers: $100 for up to 50,000 per year $250 between 50,000 and 100,000 gallons $500 between 100,000-150,000 gallons $1,000 up to 250,000 gallons.
Plenary Distillery License	to manufacture any distilled alcoholic beverages to rectify, blent, treat, or mix distilled alcoholic beverages to sell or distribute products to maintain a warehouse	$12,500
Limited Distillery License	manufacture alcoholic beverages made from fruit juices to blend, treat, mix, compound with wine, and add sweetenings and flavors to make cordials and liqueurs to sell or distribute products to maintain a warehouse	$3,750
Limited Supply Distillery License	to bottle and rebottle alcoholic beverages distilled from fruit juices to sell or distribute products to maintain a warehouse	$313 per year for up to 5,000 gallons $625 per year for 5,000-10,000 gallons $1,250 without capacity limit.
Rectifier and Blender License	to rectify, blend, treat, and mix distilled alcoholic beverages to fortify, blend, and treat fermented alcoholic beverages	$7,500
Bonded Warehouse Bottling License	to maintain a bonded warehouse pursuant to the Internal Revenue Code	$625

Class B wholesaler's licenses

Type of License	Activity permitted	Fee for license
Plenary Wholesale License	to sell and distribute alcoholic beverages to retailers and wholesalers in NJ to sell and distribute out of state to maintain a warehouse and salesroom	$8,750
Limited Wholesale License	to sell and distribute brewed malt alcoholic beverages and naturally fermented wines to retailers and wholesalers in NJ to sell and distribute out of state to maintain a warehouse and salesroom	$1,875
Wine Wholesale License	to sell and distribute any naturally fermented, treated, blended, fortified and sparkling wines to retailers and wholesalers in the state to sell and distribute out of state to maintain a warehouse and salesroom	$3,750
State Beverage Distributor's License.	to sell and distribute unchilled, brewed, malt alcoholic beverages in original containers only, in quantities of not less than 144 fluid ounces and chilled draught malt alcoholic beverages in kegs, barrels or other similar containers of at least one fluid gallon in capacity, to retailers to sell and distribute out of State to maintain a warehouse and salesroom maximum of 72 may be issued in the state	$1,031

Class C retailer's licenses

Type of License	Activity permitted	Fee for license
Plenary Retail Consumption License	to sell alcoholic beverages by glass, or open receptacle, by original containers. premises cannot be a grocery, delicatessen, drug store or mercantile business licensee permitted to hold tasting events and samplings licensee can obtain up to two Restricted Brewery Licenses package goods may only be displayed for sale on the premises’ perimeter walls or behind the bar may sell alcoholic beverages in open containers at off-premises events with Catering Permit (up to 25 times per year) number of licenses per municipality is restricted	fee set by municipality: $250–$2500 $100 per day for Catering Permit
Plenary Retail Consumption License with Broad Package Privilege (Broad C License)	same rights and limitations as a Plenary Retail Consumption License, except the sale of package goods is not restricted license is no longer being issued but an existing one may be renewed or transferred number of licenses per municipality is restricted	fee set by municipality: $250–$2500 $100 per day for Catering Permit
Hotel/Motel License	for hotels or motels containing at least 100 guest sleeping rooms same rights and limitations as a Plenary Retail Consumption License number of licenses per municipality is not restricted	fee set by municipality: $250–$2500 $100 per day for Catering Permit
Plenary Retail Consumption License (Theater Exception)	for non-profit musical or theatrical performances must have seating capacity of 1,000 persons or more alcoholic beverages must be sold in open containers consumption of alcoholic beverages only during performance, and 2 hours before and after number of licenses per municipality is not restricted	fee set by municipality: $250–$2500
Seasonal Retail Consumption License	to sell alcoholic beverages from either 1 May to 14 November or from 15 November to 30 April number of licenses per municipality is restricted	fee set by municipality: 75% of the fees for a Plenary Retail Consumption License $100 per day for Catering Permit
Plenary Retail Distribution License	to sell off the licensed premises but only in original containers to conduct tasting and samplings number of licenses per municipality is restricted	fee set by municipality: $125–$2,500
Limited Retail Distribution License	to sell any unchilled, brewed malt alcoholic beverage, only in original containers, as a grocery store, meat market, delicatessen, of food store license is no longer being issued but an existing one may be renewed or transferred number of licenses per municipality is not restricted	fees set by municipality: $31–$63
Plenary Retail Transit License	to sell any alcoholic beverage for consumption only on trains, airplanes, limousines and boats while in transit number of licenses per municipality is not restricted	$375 for train or air transport $31 for vehicle for limousines $63 for boats up to 65 feet in length $125 for boats 65–110 feet in length $375 on boats more than 110 feet in length
Club License	issued only to such corporations, associations and organizations as are operated for benevolent, charitable, fraternal, social, religious, recreational, athletic, or similar purposes, and not for private gain only for sale of alcoholic beverages to be consumed on premises to bona fide club members and their guests number of licenses per municipality is not restricted	fee set by municipality: $63–$188

Class D transportation licenses

Type of License	Activity permitted	Fee for license
Transportation License	to transport alcoholic beverages into, out of, through and within the State of New Jersey to maintain a warehouse	$625.

Class E public warehouse licenses

Type of License	Activity permitted	Fee for license
Public Warehouse License	to receive, store and warehouse, alcoholic beverages in a licensed public warehouse does not authorize any transportation of said beverages	$500.
Broker's License	to act as a broker (for a fee or commission) in the purchase and sale of alcoholic beverages, on behalf of manufacturers and wholesalers in or out of the state. cannot warehouse or purchse in his own name or account cannot sell to wholesaler or retailer in NJ	$500

Special permits

Type of License	Activity permitted	Fee for license
Social Affair Permit	only for events run by non-profit organizations alcoholic beverages must be sold in open containers limit of 12 one-day permits per year per organization limit of 25 one-day permits per year per location must have approval of the municipal police chief, and the clerk of the municipal alcoholic beverage control board	$100 per day for civic, religious, and educational organizations $150 per day for other non-profit organizations
Special Permit for a Golf Facility	designed for golf courses which are neither country clubs nor government-owned golf course must have 18 holes, and be at least 5000 linear yards (i.e., not a driving range or miniature golf course) alcoholic beverages must be sold in open containers alcohol may only be served during golf-related events	$2000
Special Concessionaire Permit	for the sale of alcoholic beverages in facilities owned by the state, a county, or a municipality alcoholic beverages must be consumed on-site permittee is not eligible for Catering Permits, and may only sell alcohol at the government facility	$2000

Municipal issues

Availability of retail liquor licenses

Because the number of Class C retail licenses for bars, restaurants, and liquor stores is limited by population and often by municipal ordinances, licenses are typically obtained from existing licenseholders who choose to sell, or when a new license is offered as a town's population grows. As a result, the price for a retail license is quite expensive and often prohibitively so. The sale of a new license is usually conducted by public auction and through the intense competition a town can reap the benefit of several hundred thousand dollars of revenue through the sale of the license to the highest bidder. A 2006 license auction in Cherry Hill, New Jersey set the state record at $1.5 million.

Unlike in many other states, supermarkets, convenience stores, and gas stations in New Jersey rarely sell alcoholic beverages. This is largely because New Jersey limits any person or corporation to obtaining only two "package goods" licenses. While licenses for bars, restaurants and liquor stores are limited, other retail and consumption licenses are not. Class C licenses can be granted without limit for private clubs with a minimum of 60 members, hotels with at least one-hundred rooms, and theatres with at least 1,000 seats. A restaurant in New Jersey without a liquor license can sell wine from a New Jersey winery by becoming an sales outlet of the winery. Since the early 1990s, there have been a handful of unsuccessful proposals to create a separate "restaurant license" allowing eating establishments to sell beer and wine. Such proposals have been strongly opposed by current retail license holders who believe that it will decrease their income, and the value of their liquor license.

Dry towns

Some municipalities, particularly in South Jersey are dry towns, where no alcohol is served or sold. Several of these towns are dry because of their origins as religious communities, usually associated with the Quaker, Methodist or other Protestant denominations. For example, the seaside resort town of Ocean City has historically been dry since it was founded in 1879 by four Methodist clergymen. Local ordinances in Ocean City prohibits restaurant patrons from bringing their own wine or beer, unlike other towns that permit "bring your own bottle" (BYOB) at unlicensed establishments. In recent years, several New Jersey municipalities have questioned whether they ought to remain dry towns or permit the sale of alcohol within town limits. Citing the need to attract new businesses and development to the town and increase the town's tax ratable base, municipal leaders frequently have placed this question before the voters in public referenda. As of 2013, only 37 municipalities in New Jersey remain completely dry towns.

Hours of operation and other licensing regulations

Atlantic City, a gambling resort along the Jersey Shore is one of the few municipalities in New Jersey that allow the sale of alcohol 24-hours a day at casinos and bars.

The hours of sale for on-premises consumption are regulated by local ordinance, and closing times vary by town. Atlantic City does not have closing hours, and alcohol can be purchased at its casinos and local bars 24 hours per day. However, state law provides that except in Newark and Jersey City, no hard liquor package goods may be sold before 9 am and after 10 pm any day of the week, and this can be restricted further through local ordinance. However, liquor stores are specifically given the right to sell package beer and wine at any time on-premises sales are allowed.

New Jersey regulations for liquor stores and bars are fairly strict. Besides prohibiting nudity and gambling in bars and clubs, it is illegal to sell liquor below cost, charge a flat fee for unlimited drinks (except for private parties and on New Year's Eve), offer any promotion that is contingent on drinking a certain amount of alcohol, sell liquor at a drive-through window, or have a 'ladies' night' or any pricing which is regarded as discriminatory. Licensed establishments are permitted to institute dress codes, cover charges, and minimum age restrictions.

BYOB: Bring Your Own Bottle

Because several restaurants are unable or choose not to get an on-premises retail and consumption license (Class C), the practice of "Bring Your Own Bottle" (BYOB) is prevalent in establishments statewide. Patrons are permitted to bring their own beer or wine to a restaurant that does not possess a liquor license, insofar as there is no municipal prohibition against it. By law, a BYOB restaurant may not allow consumption of hard liquor or mixed drinks, nor may they allow consumption of beer or wine by individuals under the age of 21, by individuals who are visibly intoxicated, or during hours in which the sale of these products is prohibited by licensees in that municipality (i.e., after closing time). Additionally, establishments offering BYOB are not allowed to charge "any admission fee or cover, corkage or service charge or advertise inside or outside of such premises that patrons may bring and consume their own wine or malt alcoholic beverages" Unless prohibited by municipal ordinance, a restaurant or other business with a retail consumption license may allow consumers to bring their own beer or wine, though many such restaurants prohibit BYOB for financial reasons.

New Jersey law prohibits strip clubs (or "Gentlemen's Clubs")—adult entertainment venues or "sexually oriented business" where stripteases and erotic or exotic dances are regularly performed—from offering both full nudity and alcohol sales. Establishments that possess a retail license and serve alcohol can only offer partially clothed services such as Go-go dancing (typically in bikinis or lingerie). Clubs that are not licensed to serve alcohol will work around the restriction by implementing a bring your own bottle (BYOB) policy and operating as a "juice bar." Juice bars have the appointments of full bars but only serve non-alcoholic beverages such as water, fruit juice, and flavored carbonated beverages. Such a bar could double as a service counter for the storage of BYOB material and offer ice and mixing services to create mixed drinks using the customer-purchased ingredients. Recent court decisions have stated that municipalities that allow BYOB policies for restaurants must allow the same practices for strip clubs.

Alcohol production and distribution

Wineries, breweries, and distilleries

See also: New Jersey wine; Beer in New Jersey; and List of wineries, breweries, and distilleries in New Jersey

Anheuser-Busch's brewery facility located on Routes 1 & 9 in Newark, New Jersey

New Jersey currently has 46 wineries, 26 breweries and brewpubs, and 1 distillery. New Jersey growers began to produce wines during the colonial period, when two landowners received recognition for their successful efforts from the Royal Society of Arts in London. The Society had challenged colonists in Britain's North American colonies to cultivate grapes and produce "those Sorts of Wines now consumed in Great Britain."

While the cultivation of grapes and fruit trees supported a flourishing wine industry in the late nineteenth and early twentieth centuries, the effects of Prohibition (1919-1933) and a legacy of restrictive laws constraining the industry's recovery subsequent to the its repeal, practically devastated the industry. For fifty years after the repeal of Prohibition, New Jersey was limited by law to a ratio of one winery license for every 1,000,000 state residents, which by 1980 effectively allowed for only seven wineries. The growth of the state's winery industry has been bolstered by the repeal, starting in 1981, with the New Jersey Farm Winery Act, of many Prohibition-era laws and allowed many small growers to open new wineries.

As of 2013, New Jersey has 46 licensed and operating wineries with several more prospective wineries in various stages of development. These wineries are growing Vitis vinifera, Vitis labrusca, or French hybrid wine grapes, and producing or offering for sale over forty types of wines. In 2010, 1.72 million gallons (approximately 716,000 cases) of wine were produced by New Jersey wineries; making it the seventh largest wine-producing state in the United States. A considerable portion of New Jersey wine sales are non-grape fruit wine, particularly apple, blueberry, raspberry, and cranberry wines. These fruits are associated with New Jersey and can be purchased from many nearby farms throughout the Garden State. New Jersey’s 46 wineries generate between US$30,000,000-$40,000,000 of revenue annually.

The first brewery in New Jersey was established in a fledgling Dutch settlement in what is now Hoboken when the state was part the Dutch New Netherlands colony. It was short-lived and destroyed by a band of Lenape in 1643 during Governor Kieft's War (1643-1645). Large German immigrant populations in Newark and Jersey City led to the establishment of a healthy brewing industry in the nineteenth and early twentieth centuries. Brewing beer became the fourth-largest industry in Newark, and names like Kruger, Hensler, Feigenspan among the leading industrial families in Newark.

Later, regional (and later national) brands Ballantine, and Rheingold, and Pabst, among others operated large breweries in Newark and surrounding towns. With accusations of German propaganda and persecution of German-Americans during World War I, many of the state's brewers relocated to the Midwestern United States Prohibition closed many of the remaining breweries in the state. For instance, of Newark's 27 breweries before Prohibition, none of them exist today. As the industry reorganized and consolidated in the 1970s and 1980s to compete nationally, the larger producers like Ballantine (in the 1960s) Rheingold (in 1977), Pabst (in 1985) closed their doors.

Presently, the state is home to one large-production brewery, Anheuser-Busch in Newark, which opened in 1951 and is used for brewing Budweiser and Rolling Rock. New Jersey offers a limited brewery licenses for microbreweries and a restricted brewery license for brewpubs that has allowed the industry to grow in recent years. In 1995, the Ship Inn Restaurant and Brewery in Milford became the first brewpub in New Jersey, since then the industry has expanded to 26 breweries, most of which are microbreweries or brewpubs. In 2010, New Jersey craft brewers produced 32,000 barrels (992,000 gallons) of craft brew. In 2012, New Jersey liberalized its licensing laws to allow microbreweries to sell beer by the glass as part of a tour, and sell up to 15.5 gallons (i.e., a keg) for off-premises consumption. The same legislation permits brewpubs to brew up to 10,000 barrels of beer per year, and sell to wholesalers and at festivals.

New Jersey does not presently have any active distillery production facilities, although two is licensed and new producers are seeking licensing and regulatory approval. Several prospective distillers have cited the excessive cost of the license ($12,500 per year) and the ambiguity of lower-level licenses as obstacles for opening businesses in the state. These craft distillers have pressured lawmakers to propose for legislation opening the way for craft distilleries to be established.

New Jersey has had a long distilling history dating to the colonial era when large landowners converted surplus fruit into brandy, sugar into rum, and grain into whiskey. Until recently, New Jersey had only one licensed distillery—coincidentally among the oldest continually operating in the country. Laird & Company in Scobeyville (Colts Neck). Founded by Robert Laird, it is the oldest licensed distillery in the United States and received License No. 1 from the U.S. Department of the Treasury in 1780. George Washington, who was acquainted with the distillery's owner, once asked him for his recipe for "cyder spirits." Today, it is the nation's only remaining producer of applejack. However, it is worth noting that presently none of the company's distilling takes place in New Jersey. Laird's obtains all its apples from Virginia's Shenandoah Valley and distills its products in Virginia. Distilling at its New Jersey facilities ceased in 1972 and Laird's only blends, ages and bottles its products in Scobeyville. In February 2013, the state issued a distillery license to Jersey Artisan Distilling of Fairfield and expects to produce rum within the year. Another prospective distiller, Cooper River Distillers in Camden is on the path to obtaining a license in the near future. These will be the first distilleries to open in the state since the beginning of Prohibition in 1919.

Direct shipping to consumers

Before 2004, New Jersey permitted in-state wineries to directly ship products to in-state customers. However, the state did not allow out-of-state producers to ship to New Jersey residents or permit New Jersey wineries to ship to out-of-state customers. This practice was declared unconstitutional by the United States Supreme Court in 2005 in a case from Michigan and subsequently New Jersey's statute was struck down by the U.S. Court of Appeals for the Third Circuit in 2010 because such limitations were found to violate the Interstate Commerce Clause of the United States Constitution.

On 17 January 2012, New Jersey governor Chris Christie signed into law a bill that legalised direct shipping from wineries to consumers, and permits New Jersey wineries to open as many as 15 offsite retail tasting rooms in the state. The law allows wineries that make less than 250,000 gallons of wine annually, which includes all of the New Jersey's wineries, to ship up to 12 cases of wine to per year to any person over the age of 21 in New Jersey or any other state that allows wine shipments. Because this prohibits 90% of wine made in the United States, but does not effect New Jersey's small wineries, proponents of the law fear that this section of the law will be struck down as unconstitutional. The U.S. Court of Appeals for the First Circuit had struck down a similar limit in Massachusetts in 2008 in light of Supreme Court of the United States decision addressing direct shipping laws a few years earlier.

Federal law prohibits alcoholic beverages from being shipped through the mail. New Jersey effectively prohibits the shipment of beer and spirits to customers by mandating a license to transport alcohol, but not having any class of liquor license that grants permission to ship beer or spirits. United Parcel Service (UPS) and Federal Express will ship wine to a person's home, but will only deliver beer or hard liquor to a licensed business. Although uncommon, it is legal for a liquor store to deliver alcoholic beverages by car or van to a person's home. ABC regulations mandate that the alcoholic beverages being delivered are paid for in advance, that they are received by someone 21 years of age or older, and that they take place at times when the licensed establishment is legally allowed to be open.

Alcohol-related legal issues

Legal drinking age and underage drinking

See also: Legal drinking age and Alcohol consumption by youth in the United States

A person must be 21 years of age in New Jersey to purchase alcoholic beverages, consume alcoholic beverages in an establishment with a liquor license, or in an area of public accommodation (e.g., restaurant, campground), or misrepresent their age in an licensed establishment (e.g., display fake identification). It is also illegal for an adult to serve alcohol to an person under 21 years old, knowingly allowing underage underage individuals to consume alcohol on a property that they own or lease, possess alcoholic beverages, even if unopened, on public school property without the written consent of the school board or school principal. State law grants an exemption for religious services, and parents and guardians who serve their own children alcohol in a private location (i.e., at a house, not at a restaurant).

New Jersey and all other U.S. states comport with the requirement of the National Minimum Drinking Age Act of 1984, which sought to set a national standard the age of 21 years as the minimum age for purchasing and publicly possessing alcoholic beverages. As an incentive to coerce state legislatures to comply, Congress tied a state's failure to enact a drinking age at 21 to a punitive decrease in a state's apportionment of federal highway funding. There is no state law prohibiting consumption of alcohol by minors while on private property, but many municipalities prohibit underage consumption unless parents or adult relatives are present. Furthermore, is it not illegal to be in a location where under underage drinking is occurring, and New Jersey does not have an "internal possession" statute criminalizing an underage person with alcohol in their body.

Violation of the state underage drinking statute is a disorderly persons offense (misdemeanor), which can be punished by up to 6 months in jail (rarely imposed), up to a $1000 fine, and suspension of a driver's license. The penalties for an adult who unlawfully serves alcohol to an underage person or brings alcohol onto a public school property are similar, except that their driver's license will not be suspended. Violation of a municipal underage drinking statutes is a non-criminal offense, which can be punished by fines up to $2000 and suspension of a driver's license, but usually results in just a fine without a court appearance being required.

There is a "good samaritan" defense to an underage drinking charge where if an underage drinker calls for medical help for another underage drinker who is ill, and cooperates with law enforcement and medical responders, neither may be prosecuted. It is common for a state underage drinking charge to be downgraded to a non-criminal municipal ordinance violation in order for the defendant to avoid a criminal record and a suspended license. Under state labor laws, a person must be at least 18 years of age to serve or sell alcoholic beverages in a restaurant, bar, or liquor store.

Open container and public consumption laws

It is illegal in New Jersey to have an open container of alcohol in the passenger portion of an automobile, but open bottles of alcohol may be transported in the trunk of a car, and consumption of alcohol on a bus, limousine, or boat is permitted. The penalty for having an open container of alcohol in a car is $200 fine for the first offense, and a $250 fine or 10 days of community service for repeat violations. The state Motor Vehicle Commission does not impose license points for open container convictions, but some automobile insurance companies impose a surcharge for this violation. New Jersey's law on open conatiners in motor vehicles is compliant with Transportation Equity Act for the 21st Century (TEA-21), a federal act passed in 1998 which reduces the highway funding of states that do not prohibit open containers in passanger areas of automobiles.

There is no state law against public consumption of alcohol in other locations, but most municipalities have open container laws prohibiting or restricting public consumption. Fines for public consumption violations can be as high as $2000, although they are generally much lower. Public intoxication without accompanying disorderly behavior is not a crime, and New Jersey law prohibits municipalities from making ordinances against public intoxication. New Jersey does not require kegs to be registered.

Drunk driving and DUI/DWI laws

See also: Drunk driving in the United States

Like all other US states, New Jersey sets a 0.08 blood alcohol content (BAC) as the threshold for intoxication when operating a motor vehicle (e.g., automobile, airplane, boat). It is possible to be charged with DUI with an BAC level below 0.08, but under 0.08, there is a presumption that the driver is not intoxicated. State law prohibits individuals under the age of 21 from driving if their BAC of 0.01 or more, and mandates that drivers submit a breath sample if requested by a police officer. Drivers are not legally required to take field sobriety tests, but these tests are admissible in court. The Alcotest has replaced the Breathalyzer as the standard device for determining blood alcohol level. To be convicted of DUI in New Jersey, a person must be operating or attempting to operate a motorized vehicle; thus activities as sleeping in a car while intoxicated or bicycling while drunk are not illegal.

New Jersey differs from all other states (except Wisconsin) in that it considers driving under the influence (DUI) as a traffic violation, and not a criminal offense, except in cases of serious injury or death. Because it is not a criminal offense, individuals charged in New Jersey with DUI and other related offenses are not fingerprinted, do not have the right to a jury trial, DUI arrests and convictions are not submitted to the FBI's NCIC criminal database, and DUI arrests and convictions cannot be expunged. Statutory criminal defenses (e.g., duress, entrapment) are not available for DUI, and in State v. Hammond, the New Jersey Supreme Court upheld the conviction of a person who drove after unknowingly having his drink spiked with alcohol. However, common-law criminal defenses are available in DUI cases, and a state appellate court reversed the conviction of a person who drove while intoxicated in order to escape assailants, citing the doctrine of necessity.

Penalties for DUI vary by level of intoxication and number of previous convictions. A first offense DUI with a BAC level of less than 0.10 faces a fine of $250 to $400, an automobile insurance surcharge of $1000 per year for 3 years, 12 hours of alcohol education, a 3-month license, and imprisonment for up to 30 days (rarely imposed). If the driver's BAC level is 0.10 or greater, the fine increases to $300 to $500, and the license suspension increase to 7 to 12 months. If the driver's BAC level is 0.15 or greater, the driver will be required to have an ignition interlock device installed in their car for 6 to 12 months after they have their license restored. New Jersey does not have administrative license revocation, and thus a suspected drunk driver's license is not suspended until they are convicted.

A person under 21 years of age who is convicted of driving with a BAC level of at least 0.01, but less than 0.08 will have their driver's license suspended for 1 to 3 months, be required to perform 15–30 hours of community service, and take part in an alcohol education program. Penalties for refusal to submit a breath sample are the same as driving with a BAC over 0.15. More severe penalties may be imposed if the DUI took place within 1000 feet of a school, or if there was a juvenile in the vehicle. DUI accidents resulting in severe injury or death are considered indictable crimes. New Jersey prohibits plea bargaining in DUI cases unless the prosecutor believes there is insufficient evidence to prove the case, and New Jersey does not offer hardship (work) licenses for people convicted of DUI.

For a second DUI conviction in a 10-year period, irrespective of BAC level, there is a fine of $500–$1,000, 2–90 days imprisonment, a 2-year license suspension, an automobile insurance surcharge of $1,000 a year for 3 years, and installation of an ignition interlock device for a 1 to 3 years after license restoration. A person who has 3 or more DUI convictions and a gap of less than 10 years years since the last conviction incurs a fine of $1,000, 6 months imprisonment, a 10-year license suspension, an automobile insurance surcharge of $1,500 a year for 3 years, and installation of an ignition interlock device for 1 to 3 years after license restoration. Jail sentences issued in New Jersey for DUI are often served through work release programs (e.g., weekends in jail).

New Jersey first established drunk driving laws in 1909, making it a disorderly persons offense (misdemeanor). In 1921, DUI was converted to a traffic violation with a 1-year license suspension for the first violation, and 5-year suspension for repeat violations. Penalties were increased in 1926 to a 2-year suspension, and a lifetime suspension and a mandatory 3 months in jail for repeat offenses. In 1951, because of concerns about the evidence needed to prove "intoxication", the New Jersey Legislature amended the DUI statute to state that a driver with a BAC of 0.15 or greater was presumed to be intoxicated. A driver with a BAC of 0.15 or greater could be acquitted if they could should that they were not physically intoxicated.

Because of new ideas about the treatment of alcoholism, the lifetime suspension was downgraded to a 10-year suspension in 1952. In 1977, the BAC limit was reduced to 0.10, but the law was modified to differentiate between second and third offenses. In 1983, the state established a "per se" rule wherein a person over the limit was considered drunk in all cases (i.e., not just a presumption). In 1992, the 0.01 BAC limit for individuals under the age of 21 was instituted, and in 2003, the 0.10 BAC limit was reduced to 0.08 to comply with federal highway funding requirements.

Dramshop liability and social host liability

Bars and restaurants are considered strictly liable for their patrons behavior, and liquor licenses can be suspended or revoked if a customer engages in illegal activity (e.g., fighting, public urination) after drinking. New Jersey law recognizes both dramshop liability and social host liability, wherein the server of alcohol to visibly-intoxicated persons or minors, is liable if that person then causes death or injury to a third-party in an alcohol-related automobile collision or other accident. In order to mitigate liability, the Division of Alcoholic Beverage Control (ABC) grants licensed establishments the right to exclude any patron for any reason, but warns business against violating civil rights laws.

While the courts in New Jersey allow the cause of actions based on dramshop liability or social host liability, the court will instruct a jury to consider the intoxicated person's negligence under the doctrine of contributory negligence. Although most alcohol-related lawsuits involve parties injured by drunk drivers, there have been cases in New Jersey where drunk drivers were able to successfully sue the establishment that served them. Recently, in Voss v. Tranquillino the New Jersey courts held that a drunk driver can sue a bar or restaurant under the "Dram Shop Act" and prevail under the theory that:

“[a] person who sustains personal injury or property damage as a result of the negligent service of alcoholic beverages by a licensed alcoholic beverage server may recover damages from a licensed alcoholic beverage server” if the server was negligent (i.e. served a visibly intoxicated person), the injury was proximately caused by the negligent service of alcoholic beverages, and the injury was a foreseeable consequence of the negligent service."

Intoxication defense

See also: Intoxication defense

New Jersey's criminal code prohibits voluntary intoxication from being used directly as a defense to a crime. However, if a crime requires that the conduct was committed intentionally, intoxication may prevent the person from having the necessary mens rea to be guilty of the crime. For example, a person who stands accused of killing a person during a fight while drunk may not guilty of murder because New Jersey law requires that the actor purposely or knowingly "causes death or serious bodily injury resulting in death." However, in such a case, an accused killer could be found guilty of manslaughter because manslaughter only requires reckless conduct, which includes crimes committed while intoxicated.

Involuntary and pathological intoxication are affirmative defenses to all criminal offenses in New Jersey, but are not defenses to regulatory law and traffic law offenses that are considered strict liability violations (e.g., environmental regulations, DUI). Involuntary intoxication relates to cases where the individual did not know that they had consumed alcohol (e.g., a spiked drink). Pathological intoxication is applicable where for medical reasons, a person had an extremely exaggerated response to alcohol. To be used as a defense, the person being charged must show that "at the time of his conduct did not know the nature and quality of the act he was doing, or if he did know it, that he did not know what he was doing was wrong."

Areas outside state ABC jurisdiction

Federal lands

The applicability of state and municipal alcohol laws on federal lands is a complex and partially unresolved legal issue that depends on whether the federal property is considered a federal enclave, what rights the state reserved when it granted the property to the federal government, and whether the law is criminal or civil. If the federal property is not an enclave, the federal government either has concurrent jurisdiction (i.e., shared authority with the state) or proprietary jurisdiction (i.e., only the rights of a landowner), and the state can enforce alcohol laws. If the federal property is an enclave, then the federal government has exclusive jurisdiction, unless the state reserved rights when it ceded the land to the federal government. The Assimilative Crimes Act makes it a federal crime to violate a state law while at a federal enclave in that state. However, the Assimilative Crimes Act only applies to criminal laws (i.e., not regulatory laws), and is not applicable if the conduct is already regulated by federal law. Under federal law, military facilities are required to adopt state traffic laws, but the base commander is permitted to institute additional traffic laws.

In New Jersey, older Department of Defense and Department of Interior properties such as Fort Dix and parts of Sandy Hook are federal enclaves, but most other federal properties are not enclaves. Because New Jersey generally did not reserve any right to regulate federal enclaves, state liquor licensing rules and alcohol taxes cannot be enforced. There is no universal policy regarding the sale of alcoholic beverages on federal lands, but almost all military bases, and some national parks allow for alcohol concessions, both for on-premises or off-premises consumption. Unlike the state, federal agencies which allow alcohol sales do not have a system of liquor licenses or alcoholic beverage control boards, but instead simply award contracts to business per federal procurement laws. New Jersey does not consider municipal ordinances to be criminal offenses, and so open container laws cannot be enforced in federal enclaves under the Assimilative Crimes Act. Public consumption of alcohol is allowed on federal lands, except when in an automobile, or when the park superintendent has prohibited open containers in an area. For example, it is legal to consume alcoholic beverages on the beach at Sandy Hook.

Because DUI in New Jersey is a non-criminal traffic violation, state DUI laws are not subject to the Assimilative Crimes Act. However, members of the Armed Forces can be court martialed for drunk driving, military bases can enforce New Jersey traffic law on civilians, and it is a misdemeanor under federal law to drive while intoxicated on land administered by the National Park Service, the Department of Veterans Affairs, or the Postal Service. Federal DUI law differs from New Jersey law in that that there are no mandatory minimum jail sentences, irrespective of the number of previous DUI convictions, and plea bargaining is allowed. However, a federal DUI conviction will result in unexpungeable criminal record. Federal courts cannot suspend a driver's license, but may notify the New Jersey Motor Vehicle Commission of a DUI conviction. In federal enclaves that are under the jurisdiction of other federal departments (e.g., Fish and Wildlife Service), it is unclear if drunk driving could be prosecuted since the Assimilative Crimes Act is inapplicable, and there is no federal law defining DUI on those properties.

Under federal law, the drinking age must be the same as the state or nation where the base is located, or the drinking age of a state or nation within 50 miles of the base. Effectively, that restricts the purchase of alcohol at New Jersey military bases to individuals over the age of 21. Irrespective of state laws on underage consumption of alcohol, the Army, Navy, Air Force, and Coast Guard prohibit the consumption of alcohol by individuals under the age of 21 when stationed in the United States. However, the Marines allow individuals under 21 years old to consume alcohol at U.S. bases on special occasions. Federal law states that national parks will have the same underage laws as the state that they are located in, and the Assimilative Crimes Act is applicable to New Jersey's underage drinking statute. Thus, an underage person in New Jersey is prohibited from consuming alcohol on public areas of federal lands, but could drink in a private location (e.g., a cabin).

See also

• Beer in New Jersey
• New Jersey wine
• List of wineries, breweries, and distilleries in New Jersey

External links

• New Jersey Division of Alcoholic Beverage Control
• New Jersey Statutes Title 33: Intoxicating Liquors
• New Jersey Administrative Code (alcohol regulations are at NJAC 13:2)