The Division of ABC regulates the sale of alcoholic beverages and the conduct of licensees through the issuance of licenses. If a licensee violates any laws or regulations, the Director may suspend or revoke the license or impose a fine and/or any other appropriate conditions on the holder of such licenses. Essential to the State's control of the liquor industry is the concept that those who own liquor licenses are granted a privilege to operate a business in the liquor industry and that this privilege may be forfeited for violations of the alcoholic beverage law. In particular, the Division issues three general types of licenses which provide different privileges regarding the purchase and sale of alcoholic beverages. The three types of licenses are manufacturing, wholesale and retail.

The Licensing Bureau is responsible for processing and reviewing all retail license transfer and renewal applications submitted by municipalities to ensure the transactions are in accord with statutes and regulations. This includes the provision of application forms, license certificates, and the offering of instruction and administrative guidance to local officials.

The Bureau also serves as the repository of official records establishing license ownership, allowing the Division of Taxation to ensure that all state taxes are being paid.