AB BILL No. 431 Signed into Law

ASSEMBLY BILL NO. 431 SIGNED INTO LAW

There is some great news coming out of the Legislature and State House. Senator Settelmeyer added an amendment to ASSEMBLY BILL NO. 431, allowing up to four wineries to operate according to Federal Regulation on the same premises. The Legislature passed the bill as amended and the Governor signed it on June 5th.

This is a great boost to our fledgling wine industry, as small entrepreneurs will now be able to share startup and overhead costs. Currently, three federally approved wineries in Reno have been put on hold because the Federal and State law on alternating proprietorship don’t agree. This should cure that and allow them to clear another hurtle on their way to starting wine production and sales.

Thank you Senator Settelmeyer!

Legislative Counsel’s Digest:
Existing law authorizes a winery that is federally bonded and permitted by the Alcohol and Tobacco Tax and Trade Bureau of the United States Department of the Treasury and that obtains a winemaker’s license from this State to: (1) produce, bottle, blend and age wine in this State; and (2) sell at retail or serve by the glass on its premises and, if applicable, at one other location, any wine produced, blended or aged by the winery. (NRS 369.200, 597.240) Under federal regulations, an alternating proprietorship is the operation of one or more wineries by proprietors who use the same premises. (27
C.F.R. § 24.136) Section 4.5 of this bill specifically authorizes operation of a winery by an alternating proprietorship of not more than four proprietors that are federally bonded and permitted and that obtain a winemaker’s license from this State to operate a winery in this State.

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