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Bill

S 2183

Permits certain winery license holders to sell wine produced by other winery licensees under certain circumstances; establishes supplemental wine production facility license.

2026-2027 Regular Session Introduced by Jim Beach and 3 co-sponsors

Allows NJ wineries up to 250k gallons to sell wine to other NJ wineries and create a supplemental production facility sublicense for own-use production and transfer.

Referred to Senate Budget and Appropriations Committee
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Bill Summary · S 2183

Overview

S 2183 (NJ 222nd Session) proposes two main changes to New Jersey’s wine and alcoholic beverage licensing framework:
- Allow plenary winery licensees and farm winery licensees producing up to 250,000 gallons per year to sell wine they produce to other New Jersey winery licensees (both plenary and farm), with certain production and ownership guardrails.
- Create a new supplemental wine production facility sublicense for plenary or farm winery licensees to produce wine at a separate facility owned or leased by the licensee, with specific transfer and retail limitations.

The bill also consolidates and clarifies numerous winery license provisions across categories (winery, farm winery, craft distillery, etc.) but its substantive departures center on inter-winery sales and the new sublicense.

Main Purpose and Intent

  • Expand internal inter-winery commerce: allow smaller to mid-size winery licensees (not exceeding 250,000 gallons annually) to sell wine to other winery licensees within New Jersey (for sale on the purchaser’s licensed premises) and to sell outside New Jersey in the purchaser’s state, subject to existing laws.
  • Introduce a mechanism (supplemental wine production facility sublicense) to enable licensees to produce wine at a separate facility they own or lease, with transfers back to their own licensed premises for sale, while ensuring proper accounting of total production for licensing purposes.
  • Preserve a “factoring” rule: wine sold to another winery does not count toward the seller’s production gallons for privilege calculations; it does count toward the purchaser’s total annual production.

Key Provisions and Changes

  • Inter-winery Sales (Plenary and Farm Winery, up to 250k gallons):
    • Permit sale of wine produced by one NJ winery licensee to another NJ plenary winery licensee or farm winery licensee for sale on the purchaser’s licensed premises.
    • Permit sale of wine produced by one NJ winery licensee to a winery outside NJ, under applicable state laws.
    • Distinguish production gallons: wine sold to another winery is not counted toward the seller’s gallons, but is counted toward the purchaser’s gallons.
    • Require that at least 50% of the wine sold annually by the licensee be produced on the licensee’s premises.
  • Supplemental Wine Production Facility Sublicense (2g):
    • Eligible for plenary winery or farm winery licensees to produce wine at a supplemental facility owned/leased by the licensee.
    • Allows transfer of wine produced at the supplemental facility to the licensee’s premises for retail sale; wholesale distribution otherwise governed by license.
    • Wine produced at the supplemental facility not sold to another licensee must be counted toward the licensee’s total annual production for fees/privileges.
    • Prohibits retail sale on the premises of the supplemental facility itself.
    • Sublicense fee set at $750.
  • Administrative mechanics:
    • Director approvals for alternating proprietorship arrangements (host winery collaborations) must confirm federal approval and compatibility with NJ law; decision due within 180 days (extendable by agreement).
    • Similar alternating proprietorship provisions apply to farm winery licenses (2b) with equivalent caps and procedures.
  • Other license categories (distilleries, cider/mead, etc.) are retained with existing structures and fees (as listed in the bill text).

Who Would Be Affected

  • Plenary winery license holders (statewide) and farm winery license holders with production up to 250,000 gallons annual.
  • Other NJ winery license holders receiving wine from another NJ winery licensee.
  • Licensees seeking to establish or utilize a supplemental wine production facility.
  • Consumers, retailers, and wholesalers subject to existing licensing and tax regimes.
  • Municipalities and local authorities via potential public-interest considerations on license issuance.

Timelines and Effective Date

  • The act takes effect on the first day of the sixth month after enactment.

Summary

S 2183 expands intra-state inter-winery commerce for smaller NJ wineries, introduces a new license path for supplemental production facilities, and preserves important production and branding requirements (e.g., 50% on-premises production) while clarifying how production is counted for licensing privileges. The changes aim to increase collaboration, efficiency in production, and distribution options for New Jersey wineries within the existing regulatory framework.

Compiled from official sources — confirm details with the bill’s official record.

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