SB 345 — Revises provisions governing estate distilleries. (BDR 52-980)
Last action — Approved by the Governor. Chapter 439.
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✓Introduced
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✓In Committee
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✓Passed Senate
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✓Passed Assembly
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✓To Executive
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6Enacted
This bill has been enacted into law. Introduced March 18, 2019. Enacted.
Odds of enactment
High chanceBased on the sponsor, cosponsors, and committee posture, this bill has a high chance of becoming law.
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Prognosis
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Enacted
Current position in the legislative process.
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5 sponsors
5 primary, 0 co-sponsors signed on.
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Single-party support
Sponsorship is currently within one party (2 R).
Based on stage, sponsorship breadth, committee status, recorded votes, and cross-state momentum — a description of the observable signals, not a prediction.
Summary
AN ACT relating to estate distilleries; authorizing brew pubs and certain wineries to transfer certain malt beverages and wine in bulk to an estate distillery; authorizing a wholesale dealer of liquor to make such a transfer; authorizing an estate distillery to receive malt beverages and wine in bulk for the purpose of distillation and blending; revising when certain spirits that are received or transferred in bulk are subject to taxation; and providing other matters properly relating thereto.
Bill Text
What changed in the latest version
431 added · 443 removed431 line(s) added, 443 removed.
(ReprintedSenate withBill amendmentsNo. adopted on May 23, 2019) SECOND REPRINT S.B.
345345–Senator SENATESettelmeyer BILLJoint NOSponsors: .
345–SENATORAssemblymen SETTELMEYERTitus, MWheeler, ARCHTolles; 18, 2019 ____________ JOINT SPONSORS :
ASSEMBLYMEN T ITUS, W HEELER , OLLES ;AND ELLISON ____________ Referred to Committee on Revenue and EconomicEllison DevelopmentCHAPTER.......... SUMMARY—Revises provisions governing estate distilleries.
(BDR 52-980) FISCAL NOTE:
Effect on Local Government:
No.
Effect on the State:
Yes.
~ EXPLANATION – Matter in bolded italics is new;
matter between brackets [omitted material] is material to be omitted.
(NRS 597.230, 597.237 and 597.240) Existing law requires an estate distillery to ensure that none of the spirits manufactured at the estate distillery are (NRSderived 597.237)neutralfrom neutral or distilled spirits manufactured by another manufacturer.
Section(NRSSection 2 of this bill authorizes an estate distillery to blend and distill wines and malt beverages, provided such wines and malt beverages are acquired from a licensed brew pub or winery in this State meeting certain requirements.
Sections 1.3-2.9 of this bill authorize an estate distillery to receive from a licensed wholesale dealer of liquor, brew pub or winery in this State meeting certain requirements, in bulk, wine or malt beverages for the purpose of distillation and blending.
(1)n(1) bywinery ato an estate distillery only if no licensed wholesale dealer of liquor;liquor is able or willing to make the transfer and a special permit for the transportation of the wine or malt beverages is obtained under existing law from the Department of Taxation.
orSections (2)1.5, directly2, by2.3, a2.5 licensedand brew2.7 pubprovide orthat -wine *SB345_R2*and –malt 2beverages –so wineryreceived toby an estate distillery onlyare iftaxable noonly licensedwhen wholesalethe dealerwine ofor liquormalt isbeverages ableare distilled or willingblended, toor makeboth, thebottled transferin andoriginal apackages special permit for thesale transportationwithin ofthis theState wineand orremoved maltfrom beveragesthe isfederally obtainedbonded underpremises existingof law from the Departmentestate ofdistillery. Taxation.
Sections 1.5, 2, 2.3, 2.5 and 2.7 provide that wine and malt beverages so received by an estate distillery are taxable only when the wine or malt beverages are distilled removed from the federally bonded premises of the estate distillery.is State and Existing law authorizes an estate distillery to transfer in bulk neutral or distilled spirits to a supplier.
Existing law provides that any such transfer is taxable onlyonlytilled when the neutral or distilled spirits are rectified and bottled in original packages for sale within this State.
(NRS 597.237) Section 2 provides that neutral or distilled spirits which are so received are taxable only when they are bottled in original packages for sale within this State and are removed from the federally bondednalbonded premises of the supplier.
- 80th Session (2019) – 2 – EXPLANATION – Matter in bolded italics is new;
matter between brackets [omitted material] is material to be omitted.
SectionSec. 1.
(Deleted by amendment.) Sec.
The premises of any brew pub operated pursuant to this section must be conspicuously identified as a “brew pub.” - *SB345_R2* – 3 – 3.
Except as otherwise provided in subsection 4, a person who operates one or more brew pubs pursuant to this section may, upon obtaining a license pursuant to chapter 369 of NRS and complying withwit(a) anyManufacture otherand applicablestore governmentalmalt requirements:beverages on the premises of one or more of the brew pubs and:
(a) Manufacture and store malt beverages on the premises of one or more of the brew pubs and:
- 80th Session (2019) – 3 – (2) Donate for charitable or nonprofit purposes and, for the purposes of the donation, transport the malt beverages manufactured on the premises in accordance with the terms and conditions of a special permit for the transportation of the malt beverages obtained from the Department of Taxation pursuant to subsection 4 of NRS 369.450.
(I) To a person holding a valid wholesale wine and liquor dealer’s license or wholesale beer dealer’s license issued pursuant to chapter 369 of NRS for the purpose of transferring in bulk the malt beverages to an estate distillery for the purpose of distillation and blending, which transfer is taxable only as provided (II) If there is no wholesaler who is able or willing to accept and transfer in bulk the malt beverages pursuant to sub- estate distillery issued pursuant to chapter 369 of NRS for597.237; thee an purpose of distillation and blending, which transfer is taxable only as provided in NRS 597.237 and must be performed in accordance with the terms and conditions of a special permit for the transportation of the malt beverages obtained from the Department of Taxation pursuant to subsection 4 of NRS 369.450.
(b)or Manufacture(II) andIf storethere maltis beveragesno onwholesaler thewho premisesis ofable one or morewilling ofto theaccept brewand pubstransfer andin transportbulk the malt beverages manufacturedpursuant on the premises to asub- retailer,subparagraph other(I), thanto a person whoholding operates a brewvalid publicense pursuant to thisoperate section,an thatestate holdsdistillery aissued valid license pursuant to chapter 369 of NRS for the purpose of sellingdistillation theand maltblending, beverageswhich attransfer ais specialtaxable eventonly as provided in NRS 597.237 and must be performed in accordance with the terms and conditions of a special permit for the transportation of the malt beverages obtained from the Department of Taxation pursuant to subsection 4 of NRS 369.450.
For(b) theManufacture purposesand ofstore thismalt paragraph,beverages on the personpremises whoof operates one or more of the brew pubs shalland nottransport obtainthe moremalt beverages manufactured on the premises to a retailer, other than 20a suchperson specialwho permitsoperates a brew pub pursuant to this section, that holds a valid license pursuant to chapter 369 of NRS for the transportationpurpose of selling the malt -beverages *SB345_R2*at –a 4special –event in accordance with the terms and beverages obtained from the Department of Taxation pursuant totoalt subsection 4 of NRS 369.450369.450. within a calendar year.
For the purposes of this paragraph, the person who operates one or more brew pubs shall not obtain more than 20 such special permits for the transportation of the malt beverages from the Department of Taxation pursuant to subsection 4 of NRS 369.450 within a calendar year.
- 80th Session (2019) – 4 – 4.
(b)(c) Complies withwithwith thereanyremotherof requirementsapplicableer;governmental ofrequirements. this chapter;
and (c) Complies with any other applicable governmental requirements.
(a) In addition to manufacturing spirits from agricultural raw materials through distillation, blend, age, store and bottle thewthe spirits so manufactured.
The person operating the estate distillery shall ensure that none of the spirits manufactured at the estate distillery are derived from neutral or distilled spirits manufactured by another [manufacturer.] manufacturer, except as authorized by paragraph (b).
or (3) A winery that has been issued a wine-maker’s license pursuant to NRS 369.200 on or after October 1, 2015, if 25 percent or more of the wine produced, blended or aged by the winerywin(c) isExcept produced,as blendedotherwise orprovided agedin fromparagraphs fruit[(f) grownand (g),] (g) and (h), in thisany State.calendar year, sell and transport in Nevada not more than a combined total of 75,000 cases of spirits at the estate distillery to a person who holds a license to engage in business as a wholesale dealer of liquor pursuant to chapter 369 of NRS.
(c)[(c)] Except(d) asIn otherwise provided in paragraphs [(f) and (g),] (g) and (h), in any calendar year, sellmanufacture andfor transportexportation into Nevadaanother state, not more than a combined total of 75,000400,000 cases of spirits at all the estate distillerydistilleries tothe a person whooperates. holds a license to engage in business as a wholesale dealer of liquor pursuant to chapter 369 of NRS.
- *SB345_R2* – 5 – [(c)] (d) In any calendar year, manufacture for exportation to another state, not more than a combined total of 400,000 cases of spirits at all the estate distilleries the person operates.
[(e)] (f) On the premises of the estate distillery, sell the spirits manufactured at the estate distillery at retail for consumption on or - 80th Session (2019) – 5 – off the premises.
Show all 83 changed lines (43 more)
[(f)] (g) Donate for charitable or nonprofit purposes and transport neutral or distilled spirits manufactured at the estate distillery in accordance with the terms and conditions of a special permit for the transportation of the neutral or distilled spirits obtained from the Department of Taxation pursuant to subsection 4 of NRS 369.450.
[(g)] (h) Transfer in bulk neutral or distilled spirits manufactured at the estate distillery to a supplier.
(1) Is taxable only when the neutral or distilled spirits are rectified and bottled in original packages for sale within this State [;] and removed from the federally bonded premises of the supplier;
State [;] and (2) Is not a sale for the purposes of paragraph [(b)] (c) or manufacturing for exportation for the purposes of paragraph [(c).] (d).
(i) Subject to the provisions of subsection 3, receive wine or malt beverages in bulk from a person described in subparagraph (1), (2) or (3) of paragraph (b), or from a wholesale dealer of alcoholic beverages who is licensed under chapter 369 of NRS and who is transferring such wine or malt beverages pursuant to NRS 597.230Wine orand 597.240,malt forbeverages theso purposereceived ofare distillationtaxable andonly blending.when theing.
Wine and malt beverages so received are taxable only when the wine and malt beverages are:
- *SB345_R2* – 6 – 3.
- 80th Session (2019) – 6 – 4.
and (c)requirements.es Complies with any other applicable governmental requirements.2.
2.
The person operating the estate distillery shall ensure that none of the spirits manufactured at the estate distillery are derived from neutral or distilled spirits manufactured paragraphby (b).nufacturer.]another [manufacturer.] manufacturer, except as authorized by (b)paragraph Blend(b). and distill wines or malt beverages, provided any such w(1) A brew pub licensed pursuant to NRS 597.230;
(b) Blend and distill wines or malt beverages, provided any such wine or malt beverage was manufactured by:
(1) A brew pub licensed pursuant to NRS 597.230;
(c) Except as otherwise provided in paragraphs [(f) and (g),] (g) and (h), in any calendar year, sell and transport in Nevada not more than a combined total of 75,000 cases of spirits at the estate distillery to a person who holds a license to engage in business as a wholesale dealer of liquor pursuant to chapter 369 of NRS.
[(e)] (f) On the premises of the estate distillery, sell the spirits manufactured at the estate distillery at retail for consumption on or - *SB345_R2* – 7 – off the premises.
The - 80th Session (2019) – 7 – total amount of such spirits sold at retail for off-premises consumption must not exceed 7,500 cases per year.
[(f)] (g) Donate for charitable or nonprofit purposes and transport neutral or distilled spirits manufactured at the estate distillery in accordance with the terms and conditions of a special permit for the transportation of the neutral or distilled spirits obtained from the Department of Taxation pursuant to subsection 4 of NRS 369.450.
and (2) Is not a sale for the purposes of paragraph [(b)] (c) or manufacturing for exportation for the purposes of paragraph [(c).] (d)(i)(d). Subject to the provisions of subsection 3, receive wine or malt beverages in bulk from a person described in subparagraph beverages who is licensed under chapter 369 of NRS and who iscoholic transferring such wine or malt beverages pursuant to NRS 597.230 or 597.240, for the purpose of distillation and blending.
(i) Subject to the provisions of subsection 3, receive wine or malt beverages in bulk from a person described in subparagraph (1) or (2) of paragraph (b), or from a wholesale dealer of alcoholic beverages who is licensed under chapter 369 of NRS and who is transferring such wine or malt beverages pursuant to NRS 597.230 or 597.240, for the purpose of distillation and blending.
(1) Distilled, blended or both, and bottled in original packages for sale within this State;
andandnd bottled in original (2) Removed from the federally bonded premises of the estate distillery.
- *SB345_R2*80th Session (2019) – 8 – Sec.
(b) Import wine or juice from a winery that is located in another state and that is federally bonded and permitted by the Alcohol and Tobacco Tax and Trade Bureau, to be fermented into wine or, ififl and already fermented, to be mixed with other wine or aged in a suitable cellar, or both.
(1) To a person holding a valid wholesale wine and liquor dealer’s license issued pursuant to chapter 369 of NRS for therthe purpose of transferring in bulk the wine to an estate distillery for the purpose of distillation and blending, which transfer is taxable only as provided in NRS 597.237;
ornding,or which transfer is taxable (2) If there is no wholesaler who is able or willing to accept and transfer in bulk the wine pursuant to subparagraph (1), to a person holding a valid license to operate an estate distillery issued pursuant to chapter 369 of NRS for the purpose of distillation and blending, which transfer is taxable only as provided in NRS 597.237 and must be performed in accordance with the terms and conditions of a special permit for the transportation of the wine obtained from the Department of Taxation pursuant to subsection 4 of NRS 369.450.
- 80th Session (2019) – 9 – (1) Sell at retail or serve by the glass, on its premises, wine produced, blended or aged by the winery.
- *SB345_R2* – 9 – (2) Transfer in bulk wine produced, blended or aged by the winery:
or (II) If there is no wholesaler who is able or willing to accept and transfer in bulk the wine pursuant to sub-sub-or willing to subparagraph (I), to a person holding a valid license to operate an estate distillery issued pursuant to chapter 369 of NRS for the purpose of distillation and blending, which transfer is taxable only as provided in NRS 597.237.
(b) Produce, blend or age wine at any location other than on the pre5.premises of the winery.
The5. State Board of Agriculture may adopt regulations for the purposes of ensuring that a winery is in compliance with any bottles of wine produced, blended or aged by the winery.abeling 6.
The State Board of Agriculture may adopt regulations for the purposes of ensuring that a winery is in compliance with any requirements established by the Federal Government for labeling bot6.es For the purposes of this section, an instructional wine- making facility is not a winery.
(b) Import wine or juice from a winery that is located in another state and that is federally bonded and permitted by the Alcohol and Tobacco Tax and Trade Bureau, to be fermented into wine or, if - 80th Session (2019) – 10 – already fermented, to be mixed with other wine or aged in a suitable cellar, or both.
- *SB345_R2* – 10 – (a) Within the limits prescribed by subsection 3, sell at retail or serve by the glass, on its premises and at one other location, wine produced, blended or aged by the winery.
The amount of wine sold at a location other than on the premises of the winery may not exceed 50 percent of the total volume of the wine sold by the winery.win(b) Serve by the glass, on its premises, any alcoholic beverage.
(b) Serve by the glass, on its premises, any alcoholic beverage.
or (II) If there is no wholesaler who is able or willing to accept and transfer in bulk the wine pursuant to sub- subparagraph (I), to a person holding a valid license to operate an estatepurpose distilleryof issueddistillation pursuantand toblending, chapterwhich 369transfer ofis NRStaxable foronly the as provided in NRS 597.237.
blending, which transfer is taxable only (b) If less than 25 percent of the wine produced, blended or aged by the winery is produced, blended or aged from fruit grown in this State, may sell at retail or serve by the glass, on its premises and, if applicable, at one other location, not more than 1,000 cases of wine produced, blended or aged by the winery per calendar year.
- 80th Session (2019) – 11 – 5.
- *SB345_R2* – 11 – Sec.
369.470 Wholesale dealers’ licenses shall permit the holders thereof to sell liquor to wholesalers, retailers and those instrumentalities of the Armed Forces of the United States specified in NRS 369.335 only anywhere in Nevada [.] , or to transfer malt beverages and wine to an estate distillery pursuant to NRS 597.230 andis 597.240,not respectively.the transaction of a bona fide wholesale business.
Sale by a wholesaler to itself as a retailer isSec. not the transaction of a bona fide wholesale business.
Sec.
H~~~~~ 19 - *SB345_R2*80th Session (2019)
Show all 83 changed rows (43 more)
View plain text versions (4)
- Enrolled As Enrolled Current pdf
- Reprint 2 View text pdf
- Reprint 1 View text pdf
- Introduced As Introduced pdf
Amendments
2 amendmentsClick Show changes on an amendment above to see how it modifies the bill.
Action History
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Approved by the Governor. Chapter 439.
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Enrolled and delivered to Governor.
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Assembly Amendment No. 758 concurred in. To enrollment.
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In Senate.
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From printer. To reengrossment. Reengrossed. Second reprint. Read third time. Passed, as amended. Title approved, as amended. (Yeas: 39, Nays: None, Excused: 2, Vacant: 1.) To Senate.
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From committee: Amend, and do pass as amended. Placed on Second Reading File. Read second time. Amended. (Amend. No. 758.) To printer.
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In Assembly. Read first time. Referred to Committee on Commerce and Labor. To committee.
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From printer. To engrossment. Engrossed. First reprint. Read third time. Passed, as amended. Title approved, as amended. (Yeas: 21, Nays: None.) To Assembly.
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From committee: Amend, and do pass as amended. Placed on Second Reading File. Read second time. Amended. (Amend. No. 468.) To printer.
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From printer. To committee.
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Read first time. Referred to Committee on Revenue and Economic Development. To printer.
Sponsors
- Senator James Settelmeyer · Primary
- John Ellison · Primary
- Robin L. Titus · Primary
- Jill Tolles · Primary
- Jim Wheeler · Primary
Sponsorship breakdown
Export CSV (upgrade) →5 sponsors · 0 co-sponsors · 62 not signed on
Sponsors (5)
- Senator James Settelmeyer
- Ellison, John Republican
- Titus, Robin L. Republican
- Jill Tolles
- Jim Wheeler
Co-sponsors (0)
None.
Not signed on (62)
62 members have not signed on to this bill.
Show all 62 →"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.
Subjects
Frequently asked questions
- What does SB 345 do?
- AN ACT relating to estate distilleries; authorizing brew pubs and certain wineries to transfer certain malt beverages and wine in bulk to an estate distillery; authorizing a wholesale dealer of liquor to make such a transfer; authorizing an estate distillery to receive malt beverages and wine in bulk for the purpose of distillation and blending; revising when certain spirits that are received or transferred in bulk are subject to taxation; and providing other matters properly relating thereto.
- Who sponsors SB 345?
- SB 345 is sponsored by Senator James Settelmeyer, Ellison, John (Republican), Titus, Robin L. (Republican), Jill Tolles, and Jim Wheeler.
- What is the current status of SB 345?
- This bill has been enacted into law. Introduced March 18, 2019. Enacted.
- Where can I track SB 345?
- Track SB 345 free on One Click Politics — get push/email alerts when it moves.
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