Struck = removed from the bill ·
added = the amendment's new text.
SenateSession Bill(80th) A SB345 R1 758 Amendment No.
345–Senator758 SettelmeyerAssembly JointAmendment Sponsors:to Senate Bill No.
Assemblymen345 Titus,First Wheeler,Reprint Tolles;(BDR 52-980) Proposed by:
Assembly Committee on Commerce and EllisonLabor CHAPTER..........Amends:
Summary:
No Title:
Yes Preamble:
No Joint Sponsorship:
Yes Digest:
Yes ASSEMBLY ACTION Initial and Dat| SENATE ACTION Initial and Date Adopted Lost | Adopted Lost Concurred In Not | Concurred In Not Receded Not | Receded Not EXPLANATION:
Matter in (1) blue bold italics is new language in the original bill;
(2) variations of green bold underlining is language proposed to be added in this amendment;
(3) red strikethrough is deleted language in the original bill;
(4) purple double strikethrough is language proposed to be deleted in this amendment;
(5) orange double underlining is deleted language in the original bill proposed to be retained in this amendment.
JFD/BJF - Date:
5/21/2019 S.B.
No.
345—Revises provisions governing estate distilleries.
(BDR 52-980) Page 1 of 10 *A_SB345_R1_758* Assembly Amendment No.
758 to Senate Bill No.
345 First Reprint Page 3 SENATE BILLN O.
345–SENATOR SETTELMEYER M ARCH 18,2019 _______________ JOINT SPONSORS :
ASSEMBLYMEN TITUS, WHEELER [;] , OLLES ;AND E LLISON _______________ Referred to Committee on Revenue and Economic Development 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.
LegislativeLegiExisting Counsel’slaw Digest:provides for the operation of brew pubs, estate distilleries and wineries.
Existing law provides for the operation of brew pubs, estate distilleries and wineries.
(NRSSection(NRS 597.237) Section 2 of this bill authorizes[removes anthe estaterequirement distillerythat tonone blendof andthe distillspirits winesmanufactured andat maltan beverages,estate provideddistillery suchbe winesderived and malt beverages are acquired from aneutral licensed brew pub or winerydistilled inspirits thismanufactured Stateby meetinganother certainmanufacturer. requirements.
SectionsSection 1.3-2.92 ofalso] thisauthorizes bill authorize an estate distillery to receiveblend fromand adistill licensedwines wholesaleand dealermalt ofbeverages, liquor,provided brewsuch pubwines orand winerymalt inbeverages thisare Stateacquired meetingfrom certaina requirements,licensed inbrew bulk,pub wine or maltwinery beveragesin forthis theState purposemeeting ofcertain distillationrequirements. and blending.
Sections [1.5, 2, 2.3, 2.5 and 2.7] 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) wineryby toa an estate distillery only if no licensed wholesale dealer of liquorliquor; 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.
or (2) directly by a licensed brew pub or winery to an estate distillery only if no licensed wholesale dealer of 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.
spiritsAssembly toAmendment aNo. supplier.
Existing758 lawto providesSenate thatBill anyNo. such transfer is taxable onlytilled when the neutral or distilled spirits are rectified and bottled in original packages for sale within this State.
345 First Reprint Page 4 a supplier.
Existing law provides that any such transfer is taxable only when the neutral orrits to distilled spirits are rectified and bottled in original packages for sale within this State.
- 80th Session (2019) – 2 – EXPLANATION – Matter in bolded italics is new;
matter between brackets [omitted material] is material to be omitted.
Sec.Section 1.
(Deleted by amendment.) Sec.
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 wit(a)with Manufactureany andother storeapplicable maltgovernmental beveragesrequirements: 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.
(3) Transfer in bulk the malt beverages manufactured on the premises:premises :
(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 forAssembly theAmendment purposeNo. of distillation and blending, which transfer is taxable only as provided in NRS 597.237;
or758 (II) If there is no wholesaler who is able or willing to acceptSenate andBill transferNo. in bulk the malt beverages pursuant to sub- 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 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)345 ManufactureFirst andReprint storePage malt5 beverages on the premises of one or more of the brew pubs and transport the malt beverages manufactured on the premises to a retailer, other than a person who operates a brew pub pursuant to this section, that holds a valid license pursuant to chapter 369 of NRS for the purpose of sellingdistillation the malt beverages at a special event in accordance with the terms and beveragesblending, obtainedwhich fromtransfer theis Departmenttaxable ofonly Taxationas pursuantprovided toaltin subsection 4 of NRS 369.450.597.237;
or (II) If there is no wholesaler who is able or willing to accept and transfer in bulk the malt beverages pursuant to sub-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 [.] 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) Manufacture and store malt beverages on the premises of one or more of the brew pubs and transport the malt beverages manufactured on the premises to a retailer, other than a person who operates a brew pub pursuant to this section, that holds a valid license pursuant to chapter 369 of NRS for the purpose of selling the malt beverages at a special event 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.
- 80th Session (2019) – 4 – 4.
(c)(b) Complies withwithwith reanyremotherofthe applicableer;governmentalrequirements requirements.of this chapter;
and (c) Complies with any other applicable governmental requirements.
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 win(c)winery Exceptis asproduced, otherwiseblended providedor inaged paragraphsfrom [(f)fruit andgrown (g),] (g) and (h), in anythis calendarState. 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) (d)Except Inas otherwise provided in paragraphs [(f) and (g),] (g) and (h), in any calendar year, manufacturesell forand exportationtransport toin anotherNevada state, not more than a combined total of 400,00075,000 cases of spirits at all the estate distilleriesdistillery theto a person operates.who holds a license to engage in business as a wholesale dealer of liquor pursuant to chapter 369 of NRS.
Assembly Amendment No.
758 to Senate Bill No.
345 First Reprint Page 6 [(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.
[(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.
(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),(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 Wine597.230 andor malt597.240, beveragesfor sothe receivedpurpose areof taxabledistillation onlyand whenblending. theing.
Wine and malt beverages so received are taxable only when the wine and malt beverages are:
- 80th Session (2019) – 6 – 4.
and requirements.es(c) Complies with any other applicable governmental 2.requirements.
2.
The person operating the estate distillery shall ensure that none of the spirits manufactured at theAssembly estateAmendment distilleryNo. are derived from neutral or distilled spirits manufactured by another [manufacturer.] manufacturer, except as authorized by paragraph (b).
758 to Senate Bill No.
345 First Reprint Page 7 the estate distillery are derived from neutral or distilled spirits manufactured by another [manufacturer.] manufacturer, except as authorized by paragraph (b).
(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.
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.
(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),(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;
andndand bottled in original (2) Removed from the federally bonded premises of the estate distillery.
4.Assembly Amendment No.
758 to Senate Bill No.
345 First Reprint Page 8 4.
- 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, iflif and already fermented, to be mixed with other wine or aged in a suitable cellar, or both.
(c) Transfer in bulk wine produced, blended or aged by the winery:winery :
or (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.
(2) Transfer in bulk wine produced, blended or aged by the winery:winery :
or (II) If there is no wholesaler who is able or willing to accept and transfer in bulk the wine pursuant to sub-orsub-subparagraph 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.
(a)Assembly ExceptAmendment asNo. otherwise provided in paragraph (b) of subsection 2, sell alcoholic beverages on the premises of the winery other than wine produced, blended or aged by the winery.
758 to Senate Bill No.
345 First Reprint Page 9 (a) Except as otherwise provided in paragraph (b) of subsection 2, sell alcoholic beverages on the premises of the winery other than wine produced, blended or aged by the winery.
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.esbottles For the purposes of thiswine section,produced, anblended instructionalor wine-aged makingby facilitythe is not a winery.
6.
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.
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 win(b)winery. Serve by the glass, on its premises, any alcoholic beverage.
(b) Serve by the glass, on its premises, any alcoholic beverage.
(2) Transfer in bulk wine produced, blended or aged by the winery: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-subparagraph 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.
(a)Assembly ExceptAmendment asNo. otherwise provided in paragraph (b) of subsection 2, sell alcoholic beverages on the premises of the winery other than wine produced, blended or aged by the winery.
758 to Senate Bill No.
345 First Reprint Page 10 (a) Except as otherwise provided in paragraph (b) of subsection 2, sell alcoholic beverages on the premises of the winery other than wine produced, blended or aged by the winery.
- 80th Session (2019) – 11 – 5.
For the purposes of this section, an instructional wine-wine-making making facility is not a winery.
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 isand not597.240, therespectively. transaction of a bona fide wholesale business.
Sale by a wholesaler to itself as a retailer Sec.is not the transaction of a bona fide wholesale business.
Sec.
This section and sections 1.3, 1.5, 2,2 2.5,, [and] 2.5 , 2.8 and 2.9 of this act become effective on July 1, 2019.
~~~~~ 19 - 80th Session (2019)