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Will the N.J. Legislature pass a last-minute bill to help breweries?

“I’m optimistic he signs this,” said Eric Orlando, executive director of the Brewers Guild of New Jersey.

Lori White, co-owner of Zed's Beer, samples of a beer from one of their stainless steel tanks at the brewery..
Lori White, co-owner of Zed's Beer, samples of a beer from one of their stainless steel tanks at the brewery..Read moreDavid Maialetti / Staff Photographer

The New Jersey Legislature was meeting Thursday evening to try for a second time to pass a bill that would ease restrictions on state craft breweries.

The Senate’s budget and appropriations committee unanimously passed a similar version of the legislation on Thursday afternoon. The bill would give breweries more latitude to plan events, and to allow customers easier access to food.

“Removal of these unneeded restrictions for our craft brewery owners will allow them to think more creatively, find new opportunities to expand their operations, and serve their communities,” said co-sponsor Sen. Linda_Greenstein (D-Middlesex/Mercer).

The effort comes after Gov. Phil Murphy conditionally vetoed a craft brewery bill in November, saying he wanted to broaden the legislation because it was an opportunity to reform “antiquated” aspects of New Jersey liquor laws.

Legislators hope that the bills under consideration will be combined into a single piece of legislation to be presented to Murphy next week.

Timing is key: A final bill has to be passed by both houses by Monday, the last day of the 2022-2023 legislative session, lobbyists and legislators said. Murphy then has until Jan. 16 to sign or veto the measure — before a temporary loosening of brewery regulations is set to expire. A similar version was unanimously passed by the legislature in June, five months before Murphy issued his veto.

A revised version of the legislation aims to address Murphy’s desire to make businesses relinquish unused liquor licenses and allow them to be repurposed to create new jobs. The governor also wanted to allow alcohol sales in mall food courts.

“The New Jersey craft brewing and distilling industry is growing rapidly across New Jersey, becoming a mainstay for tourists and locals alike,” said Sen. Vin Gopal (D-Monmouth), a sponsor of the legislation. “It only makes sense to give this industry room to grow and prosper.”

Eric Orlando, executive director of the Brewers Guild of New Jersey, said Thursday that he’s “optimistic” the legislation will be adopted. “It’s been a long journey we thought we’d already won once,” he said, “but seemingly in Trenton, you have to pass a bill twice to get it done. When I see the governor’s signature on the legislation, I’ll be happy.”

Murphy’s office did not respond to a request for comment.

What led to this?

During the summer, while everyone waited for Murphy to sign the bill into law, breweries were granted a reprieve from following the rules from July until the end of the year. That meant being able to hold unlimited “special” events (trivia contests, fundraisers, open-mic nights, and the like), as well as being permitted to coordinate with food trucks so patrons could enjoy meals while drinking.

But on Nov. 27, Murphy — who had himself denigrated the brewery rules — issued his conditional veto.

Murphy wanted the bill revised to mandate businesses that hold “pocket licenses” — liquor licenses currently not in use — to relinquish them if they aren’t used within eight years of the bill’s enactment.

There are roughly 1,385 pocket licenses throughout the state, ABC statistics show. Murphy aims to get the unused licenses back on the market to generate revenue and jobs.

Murphy also wanted to allow malls of 500,000 feet or larger permission to sell alcohol in food courts.

The Senate version of the bill addresses aspects of Murphy’s concerns, sources said, adding that they believed the Assembly version — expected to be completed Thursday — would meet similar conditions.

After Christmas, brewery owners had worried that the suspended rules would be reapplied.

But on Dec. 28, the New Jersey Division of Alcoholic Beverage Control (ABC) extended the suspension until Jan. 16. The ABC did not answer requests for information.

Trenton insiders had believed that legislators wouldn’t come up with a new bill to present to Murphy before the legislative session ended. But it now looks as though they’re poised to do just that.

Along with limiting events and regulating food trucks, state rules stipulate that anyone entering a brewery for the first time must take a mandatory brewery tour. Kitchens aren’t permitted on the premises; neither is coffee or Coke. No more than two televisions are allowed, each not to exceed 65 inches.

Such restrictions don’t apply in Pennsylvania. In one major difference, breweries can have kitchens. In fact, commonwealth law demands that food “sufficient to constitute breakfast, lunch, or dinner” be available in breweries, because drinking without eating hastens intoxication.

The ABC initiated the regulations based on 2012 state legislation that labeled brewers as manufacturers with beer-tasting rooms — not bars.

The idea was to nurture breweries without siphoning business from bars and restaurants that pay $500,000 or more for liquor licenses.

Brewer manufacturer licenses run from around $1,250 to $7,500.