ASSEMBLY OVERSIGHT, REFORM AND FEDERAL RELATIONS COMMITTEE

STATEMENT TO

ASSEMBLY, No. 1662

with committee amendments

STATE OF NEW JERSEY

DATED:  JUNE 15, 2026

      The Assembly Oversight, Reform and Federal Relations Committee reports favorably and with committee amendments Assembly Bill No. 1662.

      As amended and reported by the committee, this bill permits holders of a plenary winery license or a farm winery license, who produces not more than 250,000 gallons of wine per year, to sell and transfer in bond wine produced by the licensee to any holder of a plenary winery license or farm winery license, or to any winery located outside this State in accordance with the laws of that state, for purposes of resale.  Wine transferred under the provisions of the bill may be sold by the receiving winery in accordance with current law, provided, however, that the wine is labeled, marketed, advertised, and offered for sale solely under the brand name, trade name, label, or other identifying information of the receiving winery and in accordance with applicable federal law and regulations.

      Additionally, wine transferred to another winery under the provisions of the bill are not to be considered towards the calculation of the amount of wine produced by the producing winery but is to be considered towards the total number of gallons produced per year by the receiving winery.  The bill also 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, this bill establishes a supplemental wine production facility sublicense.  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. 

     Under the bill, the 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 that is not sold to another winery license holder is to be considered when calculating the total gallons per year of wine produced by the licensee 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. 

      This bill was prefiled for introduction in the 2026-2027 session pending technical review.  As reported, the bill includes the changes required by technical review, which has been performed.

COMMITTEE AMENDMENTS:

      The committee amended the bill to:

      (1)  clarify that a holder of a plenary winery license or a farm winery license, who produces not more than 250,000 gallons of wine per year, is permitted to sell and transfer in bond wine produced by the licensee to any holder of a plenary winery license or farm winery license, or to any winery located outside this State in accordance with the laws of that state, for purposes of resale;

      (2)  clarify that wine transferred under the provisions of the bill may be sold by the receiving winery in accordance with the provisions of current law, provided, however, that the wine is labeled, marketed, advertised, and offered for sale solely under the brand name, trade name, label, or other identifying information of the receiving winery and in accordance with applicable federal law and regulations;

      (3)  clarify that wine transferred to another winery under the provisions of the bill is not to be considered towards the calculation of the amount of wine produced by the producing winery but is to be considered towards the total number of gallons produced per year by the receiving winery;

      (4)  clarify the term “product” to include wine that is bottled; and

      (5)  define the phrase “in bond” as a transfer of untaxed bulk or bottled wine between bonded winery premises pursuant to applicable federal law and regulations.