Increases craft distillery production limits.

S3615

SENATE, No. 3615

STATE OF NEW JERSEY

222nd LEGISLATURE

�

INTRODUCED FEBRUARY 19, 2026

Sponsored by:

Senator� RAJ MUKHERJI

District 32 (Hudson)

SYNOPSIS

���� Increases craft distillery production limits.

CURRENT VERSION OF TEXT

���� As introduced.

��

An Act

concerning craft distilleries and amending
R.S.33:1-10.

����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:

1.

R.S.33:1-10 is
amended to read as follows:

���� 33:1-10.� Class A licenses
shall be subdivided and classified as follows:

���� Plenary brewery license.� 1a.�
The holder of this license shall be entitled, subject to rules and regulations,
to brew any malt alcoholic beverages and to sell and distribute his products to
wholesalers and retailers licensed in accordance with this chapter, and to sell
and distribute without this State to any persons pursuant to the laws of the
places of such sale and distribution, and to maintain a warehouse, provided,
however, that the delivery of this product by the holder of this license to
retailers licensed under this title shall be from inventory in a warehouse
located in this State which is operated under a plenary brewery license.� The
fee for this license shall be $10,625.

���� Limited brewery license.� 1b.�
The holder of this license shall be entitled, subject to rules and regulations,
to brew any malt alcoholic beverages in a quantity to be expressed in said
license, dependent upon the following fees and not in excess of 300,000 barrels
of 31 fluid gallons capacity per year and to sell and distribute this product
to wholesalers and retailers licensed in accordance with this chapter, and to
sell and distribute without this State to any persons pursuant to the laws of
the places of such sale and distribution, and to maintain a warehouse,
provided, however, that the delivery of this product by the holder of this
license to retailers licensed under this title shall be from inventory in a
warehouse located in this State which is operated under a limited brewery
license.� The holder of this license shall be entitled to sell this product at
retail to consumers on the licensed premises of the brewery for consumption on
the premises, or in a quantity of not more than 15.5 fluid gallons per person
for consumption off the premises, and to offer samples for sampling purposes.�
The holder of this license shall not be required to pay a fee to the division
for the privilege of offering samples pursuant to this section.� If the holder
of this license holds a bonded warehouse bottling license issued pursuant to
subsection 5 of this section, product brewed in accordance with this subsection
and transferred to a bonded warehouse for bottling and storage may be sold at
retail and offered for sampling on the licensed premises of the brewery by the
holder of this license.� The holder of this license shall not sell food or
operate a restaurant on the licensed premises, but may coordinate with food
vendors pursuant to section 1 of P.L.2023, c.290 (C.33:1-10b).� The holder of
this license shall be entitled to engage in the privileges established pursuant
to section 1 of P.L.2023, c.290 (C.33:1-10b).

���� The fee for this license shall
be graduated as follows:

���� to so brew not more than
50,000 barrels of 31 liquid gallons capacity per annum, $1,250;

���� to so brew not more than
100,000 barrels of 31 fluid gallons capacity per annum, $2,500;

���� to so brew not more than
200,000 barrels of 31 fluid gallons capacity per annum, $5,000;

���� to so brew not more than
300,000 barrels of 31 fluid gallons capacity per annum, $7,500.

���� For the purposes of this
subsection, "sampling" means the selling at a nominal charge or the
gratuitous offering of an open container not exceeding four ounces of any malt
alcoholic beverage.� For the purposes of this subsection, "product"
means any malt alcoholic beverage that is produced on the premises licensed
under this subsection.

���� Restricted brewery license.�
1c.� The holder of this license shall be entitled, subject to rules and
regulations, to brew any malt alcoholic beverages in a quantity to be expressed
in such license not in excess of 300,000 barrels of 31 gallons capacity per
year.� Notwithstanding the provisions of R.S.33:1-26, the director shall issue
a restricted brewery license only to a person or an entity which has identical
ownership to an entity which holds a plenary retail consumption license issued
pursuant to R.S.33:1-12, provided that such plenary retail consumption license
is operated in conjunction with a restaurant regularly and principally used for
the purpose of providing meals to its customers and having adequate kitchen and
dining room facilities and that the licensed restaurant premises is immediately
adjoining the premises licensed under this subsection.� The holder of this
license shall be entitled to sell or deliver the product to that restaurant
premises.� The holder of this license also shall be entitled to sell and
distribute the product to wholesalers and retailers licensed in accordance with
this chapter and to sell and distribute without this State to any persons
pursuant to the laws of those places of such sale and distribution and to
maintain a warehouse, provided, however, that the delivery of this product by
the holder of this license to retailers licensed under this title shall be from
inventory in a warehouse located in this State which is operated under a
restricted brewery license.� The amount of malt alcoholic beverages that may be
sold and distributed directly to retailers pursuant to this subsection on an
annual basis shall be not more than 50 percent of the product manufactured in
that year by the holder of this license.� The fee for this license shall be
$1,250, which fee shall entitle the holder to brew up to 1,000 barrels of 31
liquid gallons per annum.� The licensee also shall pay an additional $250 for
every additional 1,000 barrels of 31 fluid gallons produced.� The fee shall be
paid at the time of application for the license, and additional payments based
on barrels produced shall be paid within 60 days following the expiration of
the license term upon certification by the licensee of the actual gallons
brewed during the license term.� No more than 10 restricted brewery licenses
shall be issued to a person or entity which holds an interest in a plenary
retail consumption license.� If the governing body of the municipality in which
the licensed premises will be located should file a written objection, the
director shall hold a hearing and may issue the license only if the director
finds that the issuance of the license will not be contrary to the public
interest.� All fees related to the issuance of both licenses shall be paid in
accordance with statutory law.� The provisions of this subsection shall not be
construed to limit or restrict the rights and privileges granted by the plenary
retail consumption license held by the holder of the restricted brewery license
issued pursuant to this subsection.

���� The holder of this license
shall be entitled to offer samples of its product for promotional purposes at
charitable or civic events off the licensed premises pursuant to an annual
permit issued by the director.

���� For the purposes of this
subsection, "sampling" means the selling at a nominal charge or the
gratuitous offering of an open container not exceeding four ounces of any malt
alcoholic beverage product.� For the purposes of this subsection, "product"
means any malt alcoholic beverage that is produced on the premises licensed
under this subsection.

���� Farm brewery license.� 1d.�
The holder of this license shall be entitled, subject to rules and regulations,
to brew any malt alcoholic beverages in a quantity to be expressed in the
license not in excess of 2,500 barrels of 31 fluid gallons per year and to sell
products to consumers for consumption off the licensed premises and to offer
samples for sampling purposes only.� The license shall be issued only when the
brewery at which such malt alcoholic beverages are brewed is located and
constructed upon a tract of land exclusively under the control of the licensee,
the licensee is actively engaged in farming on or adjacent to the brewery
premises, and the malt alcoholic beverages are substantially produced from hops
or other ingredients grown or cultivated on that tract of land.� The holder of
this license shall not sell or offer food for consumption on the licensed
premises.�

���� The fee for this license shall
be graduated as follows: to manufacture between 1,200 and 2,500 barrels per
year, $300; to manufacture between 100 and 1,199 barrels per year, $200; to
manufacture fewer than 100 barrels per year, $100.� An individual or entity
shall not hold more than one farm brewery license.

���� For purposes of this
subsection, "sampling" means the selling at a nominal charge or the
gratuitous offering of an open container not exceeding one and one-half ounces
of a malt alcoholic beverage.

���� Plenary winery license.� 2a.�
Provided that the holder is engaged in growing and cultivating grapes or fruit
used in the production of wine on at least three acres on, or adjacent to, the
winery premises, except as otherwise provided in this subsection for certain
alternating proprietorship agreements, the holder of this license shall be
entitled, subject to rules and regulations, to produce any fermented wines, and
to blend, fortify, and treat wines, and to sell and distribute his products to
wholesalers licensed in accordance with this chapter and to churches for
religious purposes, and to sell and distribute without this State to any
persons pursuant to the laws of the places of such sale and distribution, and
to maintain a warehouse, and to sell his products at retail to consumers on the
licensed premises of the winery for consumption on or off the premises and to
offer samples for sampling purposes only.� The fee for this license shall be
$938.� A holder of this license who produces not more than 250,000 gallons per
year shall also have the right to sell and distribute his products to retailers
licensed in accordance with this chapter, except that the holder of this
license shall not use a common carrier for such distribution.� The fee for this
additional privilege shall be graduated as follows: a licensee who manufactures
more than 150,000 gallons, but not in excess of 250,000 gallons per annum,
$1,000; a licensee who manufactures more than 100,000 gallons, but not in
excess of 150,000 gallons per annum, $500; a licensee who manufactures more
than 50,000 gallons, but not in excess of 100,000 gallons per annum, $250; a
licensee who manufactures 50,000 gallons or less per annum, $100.� A holder of
this license who produces not more than 250,000 gallons per year shall have the
right to sell such wine at retail in original packages in 15 salesrooms apart
from the winery premises for consumption on or off the premises and for
sampling purposes for consumption on the premises, at a fee of $250 for each
salesroom.� Licensees shall not jointly control and operate salesrooms.�
Additionally, the holder of this license who produces not more than 250,000
gallons per year may ship not more than 12 cases of wine per year, subject to
regulation, to any person within or without this State over 21 years of age for
personal consumption and not for resale.� A case of wine shall not exceed a
maximum of nine liters.� A copy of the original invoice shall be available for
inspection by persons authorized to enforce the alcoholic beverage laws of this
State for a minimum period of three years at the licensed premises of the
winery.� For the purposes of this subsection, "sampling" means the
selling at a nominal charge or the gratuitous offering of an open container not
exceeding one and one-half ounces of any wine.

���� A holder of this license who
produces not more than 250,000 gallons per year shall not own, either in whole
or in part, or hold, either directly or indirectly, any interest in a winery
that produces more than 250,000 gallons per year.� In addition, a holder of
this license who produces more than 250,000 gallons per year shall not own,
either in whole or in part, or hold, either directly or indirectly, any
interest in a winery that produces not more than 250,000 gallons per year.

���� An applicant for a plenary
winery license or the holder of a plenary winery license may apply to the
director for approval to enter into an agreement with a host New Jersey winery
to use the host's equipment and space in an alternating proprietorship for
production of wine, provided that the applicant or holder has obtained approval
of the proposed alternating proprietorship arrangement from the Alcohol and
Tobacco Tax and Trade Bureau.� The director shall approve the agreement if the
director determines that the Alcohol and Tobacco Tax and Trade Bureau has
approved the agreement and the agreement does not violate any applicable New
Jersey alcohol licensing and taxation laws and related regulations or special
rulings of the director.� The director shall approve or deny the application no
later than 180 days after receipt of the application, unless the applicant
agrees to an extension.

���� An applicant for a plenary
winery license who also applies to the director to enter into an alternating
proprietorship agreement pursuant to this subsection shall, upon approval by
the director of both applications, be permitted to grow and cultivate grapes or
fruit used in the production of wine on at least three acres within a five-mile
radius of the host winery premises.

���� For the purposes of this
subsection, "product" means any wine that is produced, blended,
fortified, or treated by the licensee on its licensed premises situated in the
State of New Jersey.� For the purposes of this subsection, "wine" shall
include "hard cider" and "mead" as defined in this section.

���� Farm winery license.� 2b.� The
holder of this license shall be entitled, subject to rules and regulations, to
manufacture any fermented wines and fruit juices in a quantity to be expressed
in said license, dependent upon the following fees and not in excess of 50,000
gallons per year and to sell and distribute his products to wholesalers and
retailers licensed in accordance with this chapter and to churches for
religious purposes and to sell and distribute without this State to any persons
pursuant to the laws of the places of such sale and distribution, and to
maintain a warehouse and to sell at retail to consumers for consumption on or
off the licensed premises and to offer samples for sampling purposes only.� The
license shall be issued only when the winery at which such fermented wines and
fruit juices are manufactured is located and constructed upon a tract of land
exclusively under the control of the licensee, provided that the licensee is
actively engaged in growing and cultivating an area of not less than three
acres on or adjacent to the winery premises and on which are growing grape
vines or fruit to be processed into wine or fruit juice, except in the case of
certain alternating proprietorship agreements, as provided in this subsection,
and provided, further, that for the first five years of the operation of the
winery, such fermented wines and fruit juices shall be manufactured from at
least 51 percent grapes or fruit grown in the State and that thereafter they
shall be manufactured from grapes or fruit grown in this State at least to the
extent required for labeling as "New Jersey Wine" under the
applicable federal laws and regulations.� The containers of all wine sold to
consumers by such licensee shall have affixed a label stating such information
as shall be required by the rules and regulations of the Director of the
Division of Alcoholic Beverage Control.� The fee for this license shall be
graduated as follows: to so manufacture between 30,000 and 50,000 gallons per
annum, $375; to so manufacture between 2,500 and 30,000 gallons per annum,
$250; to so manufacture between 1,000 and 2,500 gallons per annum, $125; to so
manufacture less than 1,000 gallons per annum, $63.� No farm winery license
shall be held by the holder of a plenary winery license.

���� The holder of this license
shall also have the right to sell and distribute his products to retailers
licensed in accordance with this chapter, except that the holder of this
license shall not use a common carrier for such distribution.� The fee for this
additional privilege shall be $100.� The holder of this license shall have the
right to sell his products in original packages at retail to consumers in 15
salesrooms apart from the winery premises for consumption on or off the
premises, and for sampling purposes for consumption on the premises, at a fee
of $250 for each salesroom.� Licensees shall not jointly control and operate
salesrooms.� Additionally, the holder of this license may ship not more than 12
cases of wine per year, subject to regulation, to any person within or without
this State over 21 years of age for personal consumption and not for resale.� A
case of wine shall not exceed a maximum of nine liters.� A copy of the original
invoice shall be available for inspection by persons authorized to enforce the
alcoholic beverage laws of this State for a minimum period of three years at
the licensed premises of the winery.� For the purposes of this subsection,
"sampling" means the selling at a nominal charge or the gratuitous
offering of an open container not exceeding one and one-half ounces of any
wine.

���� A holder of this license who
produces not more than 250,000 gallons per year shall not own, either in whole
or in part, or hold, either directly or indirectly, any interest in a winery
that produces more than 250,000 gallons per year.

���� An applicant for a farm winery
license or the holder of a farm winery license may apply to the director for
approval to enter into an agreement with a host New Jersey winery to use the
host's equipment and space in an alternating proprietorship for production of
wine, provided that the applicant or holder has obtained approval of the
proposed alternating proprietorship arrangement from the Alcohol and Tobacco
Tax and Trade Bureau.� The director shall approve the agreement if the director
determines that the Alcohol and Tobacco Tax and Trade Bureau has approved the
agreement and the agreement does not violate any applicable New Jersey alcohol
licensing and taxation laws and related regulations or special rulings of the
director.� The director shall approve or deny the application no later than 180
days after receipt of the application, unless the applicant agrees to an
extension.

���� An applicant for a farm winery
license who also applies to the director to enter into an alternating
proprietorship agreement pursuant to this subsection shall, upon approval by
the director of both applications, be permitted to grow and cultivate grapes or
fruit used in the production of wine on at least three acres within a five-mile
radius of the host winery premises.

���� Unless otherwise indicated,
for the purposes of this subsection, with respect to farm winery licenses,
"manufacture" means the vinification, aging, storage, blending,
clarification, stabilization, and bottling of wine or juice from New Jersey fruit
to the extent required by this subsection.

���� For the purposes of this
subsection, "wine" shall include "hard cider" and
"mead" as defined in this section.

���� Wine blending license.� 2c.�
The holder of this license shall be entitled, subject to rules and regulations,
to blend, treat, mix, and bottle fermented wines and fruit juices with
non-alcoholic beverages, and to sell and distribute his products to wholesalers
and retailers licensed in accordance with this chapter, and to sell and
distribute without this State to any persons pursuant to the laws of the places
of such sale and distribution, and to maintain a warehouse.� The fee for this
license shall be $625.

���� For the purposes of this
subsection, "wine" shall include "hard cider" and
"mead" as defined in this section.

���� Instructional winemaking
facility license.� 2d.� The holder of this license shall be entitled, subject
to rules and regulations, to instruct persons in and provide them with the
opportunity to participate directly in the process of winemaking and to directly
assist such persons in the process of winemaking while in the process of
instruction on the premises of the facility.� The holder of this license also
shall be entitled to manufacture wine on the premises not in excess of an
amount of 10 percent of the wine produced annually on the premises of the
facility, which shall be used only to replace quantities lost or discarded
during the winemaking process, to maintain a warehouse, and to offer samples
produced by persons who have received instruction in winemaking on the premises
by the licensee for sampling purposes only on the licensed premises for the
purpose of promoting winemaking for personal or household use or consumption.�
Wine produced on the premises of an instructional winemaking facility shall be
used, consumed, or disposed of on the facility's premises or distributed from
the facility's premises to a person who has participated directly in the
process of winemaking for the person's personal or household use or
consumption.� The holder of this license may sell mercantile items
traditionally associated with winemaking and novelty wearing apparel identified
with the name of the establishment licensed under the provisions of this
section.� The holder of this license may use the licensed premises for an event
or affair, including an event or affair at which a plenary retail consumption
licensee serves alcoholic beverages in compliance with all applicable statutes
and regulations promulgated by the director.� The fee for this license shall be
$1,000.� For the purposes of this subsection, "sampling" means the
gratuitous offering of an open container not exceeding one and one-half ounces
of any wine.

���� For the purposes of this
subsection, "wine" shall include "hard cider" and
"mead" as defined in this section.

���� Out-of-State winery license.�
2e.� Provided that the applicant does not produce more than 250,000 gallons of
wine per year, the holder of a valid winery license issued in any other state
may make application to the director for this license.� The holder of this
license shall have the right to sell and distribute his products to wholesalers
licensed in accordance with this chapter and to sell such wine at retail in
original packages in 16 salesrooms apart from the winery premises for
consumption on or off the premises at a fee of $250 for each salesroom.�
Licensees shall not jointly control and operate salesrooms.� The annual fee for
this license shall be $938.� A copy of a current license issued by another
state shall accompany the application.� The holder of this license also shall
have the right to sell and distribute his products to retailers licensed in
accordance with this chapter, except that the holder of this license shall not
use a common carrier for such distribution.� The fee for this additional privilege
shall be graduated as follows: a licensee who manufactures more than 150,000
gallons, but not in excess of 250,000 gallons per annum, $1,000; a licensee who
manufactures more than 100,000 gallons, but not in excess of 150,000 gallons
per annum, $500; a licensee who manufactures more than 50,000 gallons, but not
in excess of 100,000 gallons per annum, $250; a licensee who manufactures
50,000 gallons or less per annum, $100.� Additionally, the holder of this
license may ship not more than 12 cases of wine per year, subject to
regulation, to any person within or without this State over 21 years of age for
personal consumption and not for resale.� A case of wine shall not exceed a
maximum of nine liters.� A copy of the original invoice shall be available for
inspection by persons authorized to enforce the alcoholic beverage laws of this
State for a minimum period of three years at the licensed premises of the
winery.

���� The licensee shall collect
from the customer the tax due on the sale pursuant to the "Sales and Use
Tax Act," P.L.1966, c.30 (C.54:32B-1 et seq.) and shall pay the tax due on
the delivery of alcoholic beverages pursuant to the "Alcoholic beverage
tax law," R.S.54:41-1 et seq.� The Director of the Division of Taxation in
the Department of the Treasury shall promulgate such rules and regulations
necessary to effectuate the provisions of this paragraph and may provide by
regulation for the co-administration of the tax due on the delivery of
alcoholic beverages pursuant to the "Alcoholic beverage tax law,"
R.S.54:41-1 et seq. with the administration of the tax due on the sale pursuant
to the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-1 et seq.).

���� A holder of this license who
produces not more than 250,000 gallons per year shall not own, either in whole
or in part, or hold, either directly or indirectly, any interest in a winery
that produces more than 250,000 gallons per year.

���� For the purposes of this
subsection, "wine" shall include "hard cider" and
"mead" as defined in this section.

���� Cidery and meadery license.�
2f.� The holder of this license shall be entitled, subject to rules and
regulations, to manufacture hard cider and mead and to sell and distribute
these products to wholesalers and retailers licensed in accordance with this chapter,
and to sell and distribute without this State to any persons pursuant to the
laws of the places of such sale and distribution, and to maintain a warehouse.�
The holder of this license shall be entitled to sell these products at retail
to consumers on the licensed premises for consumption on or off the premises
and to offer samples for sampling purposes only.� The holder of this license
shall be permitted to offer for sale or make the gratuitous offering of
packaged crackers, chips, nuts, and similar snacks to consumers.� The holder of
this license shall not operate a restaurant on the licensed premises, but may
coordinate with food vendors pursuant to section 1 of P.L.2023, c.290
(C.33:1-10b).� The holder of this license shall be entitled to engage in the
privileges established pursuant to section 1 of P.L.2023, c.290 (C.33:1-10b).�
The fee for this license shall be $938.

���� The holder of this license
shall be entitled to manufacture hard cider in a quantity not to exceed 50,000
barrels of 31 fluid gallons capacity per year.� With respect to the sale and
distribution of hard cider to a wholesaler, the licensee shall be subject to
the same statutory and regulatory requirements as a brewer, and hard cider
shall be considered a malt alcoholic beverage, for the purposes of the
"Malt Alcoholic Beverage Practices Act," P.L.2005, c.243
(C.33:1-93.12 et seq.).� The holder of this license shall not directly ship
hard cider either within or without this State.

���� The holder of this license
shall be entitled to manufacture not more than 250,000 gallons of mead per
year.� The holder of this license may ship not more than 12 cases of mead per
year, subject to regulation, to any person within or without this State over 21
years of age for personal consumption and not for resale.� A case of mead shall
not exceed a maximum of nine liters.� A copy of the original invoice shall be
available for inspection by persons authorized to enforce the alcoholic
beverage laws of this State for a minimum period of three years at the licensed
premises.

���� As used in this subsection:

���� "Hard cider" means a
fermented alcoholic beverage derived primarily from apples, pears, apple juice
concentrate and water, or pear juice concentrate and water, which may include
spices, herbs, honey, or other flavoring, and which contains at least one half
of one percent but less than eight and one half percent alcohol by volume.

���� "Mead" means an
alcoholic beverage primarily made from honey, water, and yeast, and which may
contain fruit, fruit juices, spices, or herbs added before or after
fermentation has completed, except that the ratio of fermentable sugars from
fruit or fruit juices shall not exceed 49 percent of the total fermentable
sugars used to produce mead.

���� "Sampling" means the
selling at a nominal charge or the gratuitous offering of an open container not
exceeding four ounces of hard cider or mead produced on the licensed premises.

���� Plenary distillery license.�
3a.� The holder of this license shall be entitled, subject to rules and
regulations, to manufacture any distilled alcoholic beverages and rectify,
blend, treat, and mix, and to sell and distribute his products to wholesalers and
retailers licensed in accordance with this chapter, and to sell and distribute
without this State to any persons pursuant to the laws of the places of such
sale and distribution, and to maintain a warehouse.� The fee for this license
shall be $12,500.

���� Limited distillery license.�
3b.� The holder of this license shall be entitled, subject to rules and
regulations, to manufacture and bottle any alcoholic beverages distilled from
fruit juices and rectify, blend, treat, mix, compound with wine, and add necessary
sweetening and flavor to make cordial or liqueur, and to sell and distribute to
wholesalers and retailers licensed in accordance with this chapter, and to sell
and distribute without this State to any persons pursuant to the laws of the
places of such sale and distribution and to warehouse these products. The fee
for this license shall be $3,750.

���� Supplementary limited
distillery license.� 3c.� The holder of this license shall be entitled, subject
to rules and regulations, to bottle and rebottle, in a quantity to be expressed
in said license, dependent upon the following fees, alcoholic beverages distilled
from fruit juices by such holder pursuant to a prior plenary or limited
distillery license, and to sell and distribute his products to wholesalers and
retailers licensed in accordance with this chapter, and to sell and distribute
without this State to any persons pursuant to the laws of the places of such
sale and distribution, and to maintain a warehouse.� The fee for this license
shall be graduated as follows: to so bottle and rebottle not more than 5,000
wine gallons per annum, $313; to so bottle and rebottle not more than 10,000
wine gallons per annum, $625; to so bottle and rebottle without limit as to
amount, $1,250.

���� Craft distillery license.�
3d.� The holder of this license shall be entitled, subject to rules and
regulations, to manufacture not more than
[
20,000
]

100,000

gallons of distilled alcoholic beverages, to rectify, blend, treat, and mix
distilled alcoholic beverages, to sell and distribute this product to
wholesalers and retailers licensed in accordance with this chapter, and to sell
and distribute without this State to any persons pursuant to the laws of the
places of such sale and distribution, and to maintain a warehouse.� The holder
of this license shall be entitled to sell this product at retail to consumers
on the licensed premises of the distillery for consumption on the premises and
for consumption off the premises in a quantity of not more than five liters per
person.� In addition, the holder of this license may offer any person not more
than three samples per calendar day for sampling purposes only.� For the
purposes of this subsection, "sampling" means the gratuitous offering
of an open container not exceeding one-half ounce serving of distilled
alcoholic beverage produced on the distillery premises.� If the holder of this
license holds a bonded warehouse bottling license issued pursuant to subsection
5 of this section, product manufactured in accordance with this subsection and
transferred to a bonded warehouse for bottling and storage may be sold at
retail and offered for sampling on the licensed premises of the distillery by
the holder of this license.� Nothing in this subsection shall be deemed to
permit the direct shipment of distilled spirits either within or without this
State.� The holder of this license shall be entitled to engage in the
privileges established pursuant to section 1 of P.L.2023, c.290 (C.33:1-10b).�

���� The holder of this license
shall not sell food or operate a restaurant on the licensed premises, but may
coordinate with food vendors pursuant to section 1 of P.L.2023, c.290
(C.33:1-10b).� A holder of this license who certifies that not less than 51 percent
of the raw materials used in the production of distilled alcoholic beverages
under this section are grown in this State or purchased from providers located
in this State may, consistent with all applicable federal laws and regulations,
label these distilled alcoholic beverages as "New Jersey Distilled."
The fee for this license shall be $938.

���� Historic distillery license.�
3e.� A historic distillery license shall be issued for use in connection with a
premises that is included in the New Jersey Register of Historic Places
established pursuant to P.L.1970, c.268 (C.13:1B-15.128 et seq.).� The holder
of this license shall be entitled, subject to rules and regulations, to
manufacture any distilled alcoholic beverages, to rectify, blend, treat, and
mix distilled alcoholic beverages, to sell and distribute this product to
wholesalers and retailers licensed in accordance with this chapter, and to sell
and distribute without this State to any persons pursuant to the laws of the
places of such sale and distribution, and to maintain a warehouse.� The holder
of this license shall be entitled to sell this product at retail to consumers
on the licensed premises of the distillery for consumption on the premises.�
The holder of this license also shall be entitled to sell this product for
consumption off the premises in a quantity of not more than five liters per
person.�

���� In addition, the holder of
this license may offer any person not more than three samples per calendar day
for sampling purposes only.� For the purposes of this subsection,
"sampling" means the gratuitous offering of an open container not
exceeding one-half ounce serving of distilled alcoholic beverage produced on
the distillery premises. If the holder of this license holds a bonded warehouse
bottling license issued pursuant to subsection 5 of this section, products
manufactured in accordance with this subsection and transferred to a bonded
warehouse for bottling and storage may be sold at retail and offered for
sampling on the licensed premises of the distillery by the holder of this
license.� Nothing in this subsection shall be deemed to permit the direct
shipment of distilled spirits either within or without this State.� The holder
of this license shall be entitled to engage in the privileges established
pursuant to section 1 of P.L.2023, c.290 (C.33:1-10b).�

���� The holder of this license
shall not sell food or operate a restaurant on the licensed premises, but may
coordinate with food vendors pursuant to section 1 of P.L.2023, c.290
(C.33:1-10b).� The fee for this license shall be $1,000.

���� Rectifier and blender
license.� 4.� The holder of this license shall be entitled, subject to rules
and regulations, to rectify, blend, treat, and mix distilled alcoholic
beverages, and to fortify, blend, and treat fermented alcoholic beverages, and
prepare mixtures of alcoholic beverages, and to sell and distribute his
products to wholesalers and retailers licensed in accordance with this chapter,
and to sell and distribute without this State to any persons pursuant to the
laws of the places of such sale and distribution, and to maintain a warehouse.�
The fee for this license shall be $7,500.

���� Bonded warehouse bottling
license.� 5.� The holder of this license shall be entitled, subject to rules
and regulations, to bottle alcoholic beverages in bond on behalf of all persons
authorized by federal and State law and regulations to withdraw alcoholic
beverages from bond.� The fee for this license shall be $625.� This license
shall be issued only to persons holding permits to operate Internal Revenue
bonded warehouses pursuant to the laws of the United States.

���� The provisions of section 21
of P.L.2003, c.117 amendatory of this section shall apply to licenses issued or
transferred on or after July 1, 2003, and to license renewals commencing on or
after July 1, 2003.

(cf: P.L.2025, c.97, s.1)

���� 2. This act shall take effect
immediately.

STATEMENT

���� This bill increases craft
distillery production limits from 20,000 gallons to 100,000 gallons.

���� Under current law, the holder
of a craft distillery license is entitled to manufacture not more than 20,000
gallons of distilled alcoholic beverages to sell and distribute to wholesalers
and retailers.� These license holders also are entitled to sell their products
to consumers for consumption on and off the licensed premises of the
distillery.

���� Under this bill, the holder of
a craft distillery license would be entitled to annually produce up to 100,000
gallons of distilled alcoholic beverages.