S.B. 439
- *SB439*
SENATE BILL NO. 439–COMMITTEE ON COMMERCE AND LABOR
MARCH 24, 2025
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Referred to Committee on Commerce and Labor
SUMMARY—Revises provisions relating to alcoholic beverages.
(BDR 52-1108)
FISCAL NOTE: Effect on Local Government: No.
Effect on the State: No.
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EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.
AN ACT relating to alcoholic beverages; authorizing an estate
distillery to sell at retail alcoholic beverages not
manufactured at the estate distillery; authorizing an estate
distillery to receive, store and bottle certain spirits;
providing that certain provisions shall not be construed as
prohibiting certain conduct of suppliers; and providing
other matters properly relating thereto.
Legislative Counsel’s Digest:
Existing law provides for the operation of brew pubs, estate distilleries and 1
wineries in this State. Existing law authorizes an estate distillery, under certain 2
circumstances, to receive malt beverages or wine in bulk from a wholesale dealer, 3
brew pub or winery for the purpose of distillation and blending. Existing law 4
authorizes a brew pub or winery to make such a transfer in bulk directly to an estate 5
distillery, under certain circumstances, if no licensed wholesale dealer is able or 6
willing to make the transfer. (NRS 597.230, 597.237, 597.240) Section 1 of this bill 7
similarly authorizes an estate distillery to receive neutral or distilled spirits in bulk 8
from a supplier for the purpose of storage and bottling. Section 1 requires an estate 9
distillery to segregate such spirits in a conspicuous place away from any other 10
spirits or alcoholic beverages on the premises. 11
Existing law authorizes an estate distillery to sell at retail the spirits 12
manufactured at the estate distillery. (NRS 597.237) Section 1 authorizes an estate 13
distillery to also sell other alcoholic beverages at retail, if the estate distillery has 14
obtained any license or permit required in the jurisdiction in which the estate 15
distillery is located and the estate distillery complies with the requirements of 16
existing law to purchase liquor from a state-licensed wholesaler. 17
Existing law prohibits a wholesaler from engaging in certain conduct. (NRS 18
369.485) Section 2 of this bill provides that such prohibitions must not be 19
construed to apply to a supplier that engages in conduct which is otherwise 20
authorized by law. 21
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THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. NRS 597.237 is hereby amended to read as follows: 1
597.237 1. A person may operate an estate distillery if the 2
person: 3
(a) Obtains a license for the facility pursuant to chapter 369 of 4
NRS; 5
(b) Complies with the requirements of this chapter; and 6
(c) Complies with any other applicable governmental 7
requirements. 8
2. A person who operates an estate distillery pursuant to this 9
section may: 10
(a) In addition to manufacturing spirits from agricultural raw 11
materials through distillation, blend, age, store and bottle the spirits 12
so manufactured. The person operating the estate distillery shall 13
ensure that none of the spirits manufactured at the estate distillery 14
are derived from neutral or distilled spirits manufactured by another 15
manufacturer, except as authorized by paragraph (b). 16
(b) Blend and distill wines or malt beverages, provided any such 17
wine or malt beverage was manufactured by: 18
(1) A brew pub licensed pursuant to NRS 597.230; or 19
(2) A winery that has been issued a wine-maker’s license 20
pursuant to NRS 369.200 if 25 percent or more of the wine 21
produced, blended or aged by the winery is produced, blended or 22
aged from fruit grown or honey produced in this State. 23
(c) Except as otherwise provided in paragraphs (g) and (h), in 24
any calendar year, sell and transport in Nevada not more than a 25
combined total of 75,000 cases of spirits at the estate distillery to a 26
person who holds a license to engage in business as a wholesale 27
dealer of liquor pursuant to chapter 369 of NRS. 28
(d) In any calendar year, manufacture for exportation to another 29
state, not more than a combined total of 400,000 cases of spirits at 30
all the estate distilleries the person operates. 31
(e) On the premises of the estate distillery, serve samples of the 32
spirits manufactured at the estate distillery. Any such samples must 33
not exceed, per person, per day, 4 fluid ounces in volume. 34
(f) On the premises of the estate distillery, sell [the] : 35
(1) The spirits manufactured at the estate distillery at retail 36
for consumption on or off the premises. Any such spirits sold at 37
retail for off-premises consumption must not exceed, per person, per 38
month, 1 case of spirits and not exceed, per person, per year, 6 cases 39
of spirits. The total amount of such spirits sold at retail for off-40
premises consumption must not exceed 7,500 cases per year. Spirits 41
purchased on the premises of an estate distillery must not be resold 42
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by the purchaser or any retail liquor store. A person who operates an 1
estate distillery shall prominently display on the premises a notice 2
that the resale of spirits purchased on the premises is prohibited. 3
(2) Alcoholic beverages not manufactured at the estate 4
distillery at retail if the estate distillery: 5
(I) Has obtained any license or permit required to sell 6
alcoholic beverages at retail in the jurisdiction in which the estate 7
distillery is located; and 8
(II) Complies with NRS 369.487. 9
(g) Donate for charitable or nonprofit purposes and transport 10
neutral or distilled spirits manufactured at the estate distillery in 11
accordance with the terms and conditions of a special permit for the 12
transportation of the neutral or distilled spirits obtained from the 13
Department of Taxation pursuant to subsection 4 of NRS 369.450. 14
(h) Transfer in bulk neutral or distilled spirits manufactured at 15
the estate distillery to a supplier. Any such transfer: 16
(1) Is taxable only when the neutral or distilled spirits are 17
rectified and bottled in original packages for sale within this State 18
and removed from the federally bonded premises of the supplier; 19
and 20
(2) Is not a sale for the purposes of paragraph (c) or 21
manufacturing for exportation for the purposes of paragraph (d). 22
(i) Subject to the provisions of subsection 3, receive [wine] : 23
(1) Wine or malt beverages in bulk from a person described 24
in subparagraph (1) or (2) of paragraph (b), or from a wholesale 25
dealer of alcoholic beverages who is licensed under chapter 369 of 26
NRS and who is transferring such wine or malt beverages pursuant 27
to NRS 597.230 or 597.240, for the purpose of distillation and 28
blending. Wine and malt beverages so received are taxable only 29
when the wine and malt beverages are: 30
[(1)] (I) Distilled, blended or both, and bottled in original 31
packages for sale within this State; and 32
[(2)] (II) Removed from the federally bonded premises of the 33
estate distillery. 34
(2) Neutral or distilled spirits in bulk from a supplier for 35
the purpose of storage and bottling. Distilled spirits so received 36
must be segregated in a conspicuous place away from any other 37
spirits or alcoholic beverages on the premises of the estate 38
distillery. 39
3. A person who operates an estate distillery shall not receive a 40
shipment of wine , [or] malt beverages [:] or neutral or distilled 41
spirits in bulk: 42
(a) Unless the person first notifies the Department of Taxation 43
that the distillery will receive such a shipment; and 44
(b) Except as authorized by paragraph (i) of subsection 2. 45
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4. Spirits manufactured by an estate distillery pursuant to this 1
section may be sold in this State only after bottling in original 2
packages. 3
Sec. 2. NRS 369.485 is hereby amended to read as follows: 4
369.485 1. The Legislature hereby declares: 5
(a) That it is a privilege to engage in the business of selling 6
intoxicating liquor at the wholesale or retail level in this state; 7
(b) That the Legislature finds it necessary to impose certain 8
restrictions on the exercise of such privilege; and 9
(c) That it is the policy of this state to preclude the acquisition or 10
control of any retail liquor store by a wholesale liquor dealer. 11
2. As used in this section, unless the context requires 12
otherwise: 13
(a) “Delinquent payment” means the failure of a retail liquor 14
store to make payment to a wholesale dealer for liquor on or before 15
the 15th day of the month following delivery by the wholesale 16
dealer. 17
(b) “Payment” means the full legal discharge of the debt by the 18
wholesale dealer’s receipt of cash or its equivalent, including 19
ordinary and recognized means for discharge of indebtedness 20
excepting notes, pledges or other promises to pay at a future date. A 21
postdated check, a check not promptly deposited for collection or a 22
check dishonored on presentation for payment does not constitute 23
payment. 24
(c) “Payment in cash” means the full legal discharge of the debt 25
by delivery of cash, money order, certified check or a cashier’s or 26
similar bank officer’s check. 27
3. A wholesale dealer shall not: 28
(a) Loan any money or other thing of value to a retail liquor 29
store. 30
(b) Invest money, directly or indirectly, including through a 31
subsidiary or agent, in a retail liquor store. 32
(c) Furnish or provide any premises, building, bar or equipment 33
to a retail liquor store. 34
(d) Participate, directly or indirectly, in the operation of the 35
business of a retail liquor store. 36
(e) Sell liquor to a retail liquor store except for payment on or 37
before delivery or on terms requiring payment by the retail liquor 38
store before or on the 10th day of the month following delivery of 39
such liquor to it by the wholesale dealer. 40
(f) Sell liquor to a retail liquor store which is delinquent in 41
payment to such wholesale dealer except for payment in cash on or 42
before delivery. 43
4. On the 15th day of the month following the delivery of 44
liquor and on the 15th day of each month thereafter, the wholesale 45
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dealer shall charge a retail liquor store which is delinquent a service 1
charge of 1.5 percent of the amount of the unpaid balance. 2
5. The Department may impose the following penalties on a 3
wholesale dealer who violates any of the provisions of this section 4
within any 24-month period: 5
(a) For the first violation a penalty of not more than $500. 6
(b) For the second violation a penalty of not more than $1,000. 7
(c) For the third and any subsequent violation a penalty of not 8
more than $5,000 or by a license suspension, or by both such 9
penalty and suspension. 10
6. The Department may, upon its own motion, and shall, upon 11
the verified written complaint of any wholesale dealer, investigate 12
the possible violation of any of the provisions of this section by any 13
wholesale dealer. 14
7. Nothing in this section prohibits a supplier from engaging 15
in conduct which is described in subsection 3. 16
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