In a significant follow-up to the 2024 liquor license reform law (P.L.2023, c.290), Governor Mikie Sherrill last month enacted legislation (Senate Bill 4404) which further revamps the state’s still somewhat antiquated liquor licensing system.

The most significant changes in the new law pertain to the transfer of inactive plenary retail licenses—commonly referred to as “restaurant” or “type C” liquor licenses—mainly through the sale of such licenses (also called “pocket licenses”) beyond the borders of the issuing municipality and by reviving many of the expired licenses in the state. In addition, S4404 expands eligibility for the issuance of special food and beverage licenses for use in qualifying shopping centers. (The new law also makes changes to craft manufacturer and brewery licenses but a summary of those provisions is beyond the scope of this alert, which focuses solely on the new law’s impacts on restaurant licenses.)