SENATE BUDGET AND APPROPRIATIONS COMMITTEE

STATEMENT TO

SENATE, No. 4113

with committee amendments

STATE OF NEW JERSEY

DATED:  JANUARY 8, 2026

      The Senate Budget and Appropriations Committee reports favorably and with committee amendments Senate Bill No. 4113.

      As amended, Senate Bill No. 4113 permits plenary and farm winery license holders who produce not more than 250,000 gallons per year to produce wine on behalf of another plenary or farm winery license holder in this State or any out-of-State winery in accordance with the laws of that state and sell wine so produced to that winery.  Under the bill, wine produced on behalf of and sold to another winery is not to be considered towards the calculation of the amount of wine produced per year by the seller, but is to be considered towards the total number of gallons produced per year by the purchasing winery.  The bill provides that no less than 50 percent of the wine sold per year is required to be produced on the license holder’s premises. 

     In addition, the bill establishes a supplemental wine production facility sublicense.  Under the bill, the holder of a plenary winery license or a farm winery license engaged in the production of wine on the licensed premises of the winery who holds a supplemental wine production facility sublicense would be entitled to produce wine at the supplemental wine production facility owned and leased by the license holder. 

     The bill provides that a holder of this sublicense is additionally entitled, subject to rules and regulations, to transfer wine produced at the supplemental wine production facility to the licensed premises of the winery or salesroom for sale at retail to consumers and to otherwise sell and distribute wine produced at the supplemental wine production facility pursuant to the laws of the place of sale and distribution. 

     The bill provides that any wine produced at the supplemental production facility on behalf of and sold to another winery will not be used to calculate the total gallons per year of wine produced by the seller but will be considered towards calculation of the amount of gallons produced per year by the purchasing winery for purposes of determining any fees, limitations, and eligibility for privileges that may pertain to the holder of a plenary winery license or farm winery license.

     The bill prohibits the sale of wine at retail to consumers on the premises of the supplemental wine production facility.

     Under the bill, the fee for the sublicense is $750.

COMMITTEE AMENDMENTS:

      The committee amended the bill to:

      (1)  permit plenary winery and farm winery license holders to produce wine on behalf of another winery and sell wine so produced to that winery; as introduced, the bill did not specify that any wine sold to another winery was to be produced on behalf of the purchasing winery;

      (2)  clarify that wine produced on behalf of and sold to another winery is to be considered towards the calculation of the amount of gallons produced per year by the purchaser but not the seller;

      (3)  clarify that the definition of “product” includes wine that is bottled by the license holder;

      (4)  update the statutory text to reflect current law; and

      (5)  make other technical changes.

FISCAL IMPACT:

      Fiscal information for this bill is currently unavailable.