SB 259 — Revises provisions relating to alcoholic beverages. (BDR 52-676)

(ReprintedSenate withBill amendmentsNo. adopted on April 19, 2023) FIRST REPRINT S.B.

259259–Senators SDondero ENATELoop; B ILLN O.

259–SENATORSCannizzaro, DONDERODonate, LOOPD. ;

ANNIZZAROHarris, ,Nguyen Dand ONATEPazina ,CHAPTER.......... D.

ARRIS , NGUYEN AND P AZINA M ARCH 13, 2023 ____________ Referred to Committee on Commerce and Labor SUMMARY—Revises provisions relating to alcoholic beverages.

(BDR 52-676) 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.

Existinglaw, lawa provideswinery forthat has been issued a wine-maker’s license on or before Under existing September 30, 2015, is authorized to sell at retail or serve by the operationglass, ofon wineriesits inpremises thisand State.at one other location, wine produced, blended or aged by the winery.

Under existing September 30, 2015, is authorized to sell at retail or serve by the glass, on its premises and at one other location, wine produced, blended or aged by the winery.

andIf lessa thanwinery 25has percentbeen ofissued thea winewine-maker’s produced,license blendedon or agedafter byOctober the1, winery2015, is15, produced, blended or aged from fruit grown or honey produced in this State,State,y is existing law limits the amount of wine that the winery is authorized to sell at retail or serve by the glass to 1,000 cases per calendar year.

- *SB259_R1* – 2 – Existing law authorizes the State Board of Agriculture to adopt regulations for the purposes of ensuring that a winery is in compliance with certain federal labeling requirements.

(NRS 597.240) Section 1 additionally authorizes the Board to adoptadopteling grownregulations orcreating honeya producedcertification infor this State.or wine produced, blended or aged from fruit Existinggrown lawor provideshoney forproduced thein licensurethis ofState. importers, wholesale wine and liquor dealers, wholesale beer dealers, wine-makers, instructional wine-making facilities, breweries, brew pubs, craft distilleries and estate distilleries.

(Chapter 369 of NRS) Existing law setsprovides forthfor athe processlicensure by which a board of countyimporters, commissionerswholesale orwine the a citation for a licensee to answer a verified complaint and aliquor hearing,dealers, recommendwholesale tobeer thedealers, Departmentwine-makers, ofinstructional Taxationwine-making thefacilities, suspensionbreweries, orbrew revocationpubs, ofcraft thedistilleries licenseand ofestate adistilleries. licensee.

(Chapter 369 of NRS) Existing law sets forth a process by which a board of county commissioners or the governing body of an incorporated city may, after an investigation, the issuance of the Department of Taxation the suspension or revocation of the license of aommend to licensee.

- 82nd Session (2023) – 2 – EXPLANATION – Matter in bolded italics is new;

matter between brackets [omitted material] is material to be omitted.

(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 the - *SB259_R1* – 3 – 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;

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 conditionsconditions37 of a special permit for the transportation of the wine obtained from the- Department82nd Session (2023) – 3 – NRS 369.450.nt of Taxation pursuant to subsection 4 of NRS3. 369.450.

3.

or (II) If there is no wholesaler who is able or willing to accept and transfer in bulk the wine pursuant to sub-subparagraphsub-subparagrapho (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.

(1) Sell at retail or serve by the glass, on its premises [,] and at one other location, not more than [1,000] 2,000 cases of wine produced,barrels blendedof orcider agedproduced by the winery andper notcalendar moreyear.150 than(2) 150Subject barrelsto ofthe ciderlimitation producedset byforth thein winerysubparagraph per(1), calendarsell year.alcoholic beverages at retail if the winery:

- *SB259_R1* – 4 – (2) Subject to the limitation set forth in subparagraph (1), sell alcoholic beverages at retail if the winery:

The State Board of Agriculture may adopt regulations for the purposes of ensuring that a winery is in compliance with any - 82nd Session (2023) – 4 – requirements established by the Federal Government for labeling bottles of wine produced, blended or aged by the winery [.] and to create a certification for wine produced, blended or aged from fruit grown or honey produced in this State based on a review of filings that the winery applying for the certification is required to provide to the Alcohol and Tobacco Tax and Trade Bureau of thetheired to United States Department of the Treasury.

After the hearing is concluded and the matter submitted, the board of county commissioners or the governing body of a city, as applicable, shall, within 10 days after such submission [,] and within 60 days after the date of service of the citation issued pursuant to NRS 369.240, render its decision in writing recommending the suspension or revocation of the license, or dismissinggoverning thebody’s complaint,reasons withtherefor.tatement a statement of the board’s or the governing3. body’s reasons therefor.

3.

A copy of the decision of the board of county commissioners or the governing body of a city recommending the suspension or revocation of a license shall be transmitted forthwith by the board or - *SB259_R1* – 5 – the governing body, as applicable, to the Department.

- 82nd Session (2023) – 5 – 2.

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