(Reprinted with amendments adopted on April 15, 2025)
FIRST REPRINT S.B. 439
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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; 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 that is not an affiliate of the estate distillery for the purpose of 9
storage and bottling. Section 1 requires an estate distillery to segregate such spirits 10
in a conspicuous place away from any other spirits or alcoholic beverages on the 11
premises. 12
Existing law authorizes an estate distillery to sell at retail the spirits 13
manufactured at the estate distillery. (NRS 597.237) Section 1 authorizes an estate 14
distillery to also sell other alcoholic beverages at retail, if the estate distillery has 15
obtained any license or permit required in the jurisdiction in which the estate 16
distillery is located and the estate distillery complies with the requirements of 17
existing law to purchase liquor from certain wholesalers or importers. 18
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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 and 369.488. 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 that is 35
not an affiliate of the estate distillery for the purpose of storage 36
and bottling. Neutral or distilled spirits so received must be 37
segregated in a conspicuous place away from any other spirits or 38
alcoholic beverages on the premises of the estate 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
5. As used in this section, “affiliate” means a person who, 4
directly or indirectly through one or more intermediaries, controls, 5
is controlled by or is under common control with, a specified 6
person. 7
Sec. 2. (Deleted by amendment.) 8
H