NRS369.485. Certain transactions between wholesale dealer and retail liquor store prohibited; wholesale dealer to impose charge for delinquent payment; penalties.

      1.  The Legislature hereby declares:

      (a) That it is a privilege to engage in the business of selling intoxicating liquor at the wholesale or retail level in this state;

      (b) That the Legislature finds it necessary to impose certain restrictions on the exercise of such privilege; and

      (c) That it is the policy of this state to preclude the acquisition or control of any retail liquor store by a wholesale liquor dealer.

      2.  As used in this section, unless the context requires otherwise:

      (a) “Delinquent payment” means the failure of a retail liquor store to make payment to a wholesale dealer for liquor on or before the 15th day of the month following delivery by the wholesale dealer.

      (b) “Payment” means the full legal discharge of the debt by the wholesale dealer’s receipt of cash or its equivalent, including ordinary and recognized means for discharge of indebtedness excepting notes, pledges or other promises to pay at a future date. A postdated check, a check not promptly deposited for collection or a check dishonored on presentation for payment does not constitute payment.

      (c) “Payment in cash” means the full legal discharge of the debt by delivery of cash, money order, certified check or a cashier’s or similar bank officer’s check.

      3.  A wholesale dealer shall not:

      (a) Loan any money or other thing of value to a retail liquor store.

      (b) Invest money, directly or indirectly, in a retail liquor store.

      (c) Furnish or provide any premises, building, bar or equipment to a retail liquor store.

      (d) Participate, directly or indirectly, in the operation of the business of a retail liquor store.

      (e) Sell liquor to a retail liquor store except for payment on or before delivery or on terms requiring payment by the retail liquor store before or on the 10th day of the month following delivery of such liquor to it by the wholesale dealer.

      (f) Sell liquor to a retail liquor store which is delinquent in payment to such wholesale dealer except for payment in cash on or before delivery.

      4.  On the 15th day of the month following the delivery of liquor and on the 15th day of each month thereafter, the wholesale dealer shall charge a retail liquor store which is delinquent a service charge of 1.5 percent of the amount of the unpaid balance.

      5.  The Department may impose the following penalties on a wholesale dealer who violates any of the provisions of this section within any 24-month period:

      (a) For the first violation a penalty of not more than $500.

      (b) For the second violation a penalty of not more than $1,000.

      (c) For the third and any subsequent violation a penalty of not more than $5,000 or by a license suspension, or by both such penalty and suspension.

      6.  The Department may, upon its own motion, and shall, upon the verified written complaint of any wholesale dealer, investigate the possible violation of any of the provisions of this section by any wholesale dealer.

      (Added to NRS by 1975, 445; A 1975, 1753; 1977, 65)