AB 404 — Revises provisions relating to alcoholic beverages. (BDR 52-651)

- *AB404_R1* – 3 – (c) In any retail liquor store as that term is defined in NRS 369.090;

In a city which is located in that county, a person may operate a brew pub in any area in the city designated by the governing body of that city for the operation of brew pubs.

(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 fromNRS the369.450.artment Department of Taxation pursuant to subsection 4 of NRS(3) 369.450.Transfer in bulk the malt beverages manufactured on the premises:

(3)- Transfer83rd Session (2025) – 4 – 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 manufacturedto onan estate distillery for the premises:purpose of distillation and blending, which transfer is taxable only as provided in NRS 597.237;

(I)or To(II) aIf personthere holdingis ano validwholesaler wholesalewho wineis andable liquoror dealer’swilling licenseto oraccept wholesaleand beertransfer dealer’sin licensebulk issuedthe malt beverages pursuant to chaptersub- 369subparagraph of(I), NRSto fora theperson purposeholding ofa transferringvalid inlicense bulkto theoperate maltan beveragesestate distillery issued pursuant to anchapter estate369 distilleryof NRS for the purpose of distillation and blending, which transfer is taxable only as provided in NRS 597.237;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.

or(b) (II)Manufacture Ifand therestore ismalt nobeverages wholesaleron whothe ispremises ableof one or willingmore toof acceptthe andbrew transferpubs inand bulktransport the malt beverages pursuantoperates toa sub-brew subparagraphpub (I),pursuant to athis personsection, holdingthat holds a validvalidwho license to operate an estate distillery issued pursuant to chapter 369 of NRS for the purpose of distillationselling andthe blending,malt whichbeverages transferat isa taxablespecial onlyevent as provided in NRS 597.237 and must be performed in accordance with the terms and conditions of a special permit for the - *AB404_R1* – 4 – 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.

(d) Sell at retail, not for resale, in packages sealed on the premises of one or more of the brew pubs, malt beverages, including maltpremises beveragesfor inconsumption unpasteurizedoff form,the manufacturedpremises.factured on the premises(e) forSell consumptionat offretail alcoholic beverages other than those described in paragraph (c) if the premises.person:

(e) Sell at retail alcoholic beverages other than those described in paragraph (c) if the person:

(f)- Sell83rd alcoholicSession beverages,(2025) including,– without5 limitation,– malt beverages manufactured on or off the premises of one or more of malt the brew pubs, at not more than two retail liquor store locations under the common control of the person if:

(3) TheFor a retail liquor store location for which the person obtained any license or permit required to sell alcoholic beverages at retail on or after January 1, 2025, the retail liquor store location is not located closer than 1,000 feet to an establishment licensed pursuant to chapter 463 of NRS;

and - *AB404_R1* – 5 – (4) The retail liquor store location is located within the same county as the brew pub, unless the brew pub is located in a countycou(g) whoseIn populationa iscalendar lessyear, thanin 100,000.addition to the amount of malt beverages which may be manufactured pursuant to subsection 1, manufacture and sell 20,000 barrels of malt beverages for all the brew pubs he or she operates in this State provided such barrels are sold either to a wholesaler located outside of this State [,] or, where allowable pursuant to applicable law, to persons residing in states outside of this State, subject to such periodic auditing as the Department of Taxation shall require by regulation.

(g) In a calendar year, in addition to the amount of malt beverages which may be manufactured pursuant to subsection 1, manufacture and sell 20,000 barrels of malt beverages for all the brew pubs he or she operates in this State provided such barrels are sold either to a wholesaler located outside of this State [,] or, where allowable pursuant to applicable law, to persons residing in states outside of this State, subject to such periodic auditing as the Department of Taxation shall require by regulation.

(a) Comply with the provisions of NRS 369.520 with respect to the brew pub and each commonly controlled retail liquor store location;

andandand each commonly controlled retail liquor store (b) In addition to making any reports required pursuant to rules made by the Department of Taxation pursuant to NRS 369.360, submit to the Department of Taxation each month a report of sales of malt beverages manufactured at each brew pub and commonly controlled retail liquor store location for the immediately preceding month.

(Deleted by amendment.) - 83rd Session (2025) – 6 – Sec.

3.1.

NRS 369.230 is hereby amended to read as follows:

369.230 The board of county commissioners , [or] the governing body of a city [,] or the Department, as applicable, may, upon its own motion, and shall, upon the verified complaint in this chapter .

[, and] The board of county commissioners or thender governing body of a city, as applicable, shall have the power to recommend the temporary suspension or permanent revocation of a license and the Department shall have the power to temporarily suspend or permanently revoke a license for any one of the following acts or omissions:

1.

Misrepresentation of a material fact by the applicant in obtaining a license under this chapter;

2.

If the licensee violates or causes or permits to be violated any of the provisions of this chapter;

3.

If the licensee commits any act which would be sufficient ground for the denial of an application for a license under this chapter;

If the licensee sells liquor to a wholesaler or retailer who is not a holder of a proper license or permit at such time;

or 5.

If the licensee fails to pay the excise tax or any penalty in connection therewith, in whole or in part, imposed by law, or violates any regulation of the Department respecting the same.

Sec.

3.2.

NRS 369.240 is hereby amended to read as follows:

369.240 1.

Upon the filing with the board of county commissioners of the county in which a licensee maintains his or her principal place of business , [or with] the governing body of the business if the licensee maintains his or her principal place ofof business within an incorporated city or the Department of a verified complaint charging the licensee with the commission, within 1 year prior to the date of filing the complaint, of any act which is cause for suspension or revocation of a license, the board of county commissioners , [or] the governing body [,] or the Department, as applicable, forthwith shall issue a citation directing the licensee, within 10 days after service thereof upon him or her, to appear by filing with the board of county commissioners , [or] the governing body [,] or the Department, as applicable, a verified answer to the complaint showing cause, if any he or she has, why his or her license should not be suspended or revoked.

Service of the citation with a copy of the complaint shall be made upon the licensee as provided by the Nevada Rules of Civil Procedure for the service of process in civil actions.

- 83rd Session (2025) – 7 – 2.

Failure of the licensee to answer within the time specified shall be deemed an admission by the licensee of the commission of the act or acts charged in the complaint.

Thereupon, if the verified complaint was filed with the board of county commissioners or the applicable, shall give written notice of the failure of the licensee to answer to the Department.

The Department forthwith shall suspend or revoke the license, as the case may be, and shall give notice of such suspension or revocation by mailing a true copy thereof, by United States registered or certified mail in a sealed envelope with postage thereon fully prepaid, addressed to the licensee at his or her latest address of record in the office of the Department.

Sec.

3.3.

NRS 369.250 is hereby amended to read as follows:

369.250 Upon the filing of the answer, the board of county commissioners , [or] the governing body of a city [,] or the Department, as applicable, shall fix a time and place for a hearing and give the licensee and the complainant not less than 5 days’ notice thereof.

The notice may be served by depositing in the United States mail a true copy of the notice enclosed in a sealed envelope with postage thereon fully prepaid, addressed to the licensee and to the complainant, respectively, at their last known addresses.

With the notice to the complainant there shall be attached or enclosed a copy of the answer.

If either party has appeared by counsel the notice shall be given, in like manner, to counsel instead of to the party.

Sec.

3.4.

NRS 369.260 is hereby amended to read as follows:

369.260 1.

Upon the hearing, the board of county Department, as applicable, shall hear all relevant and competent evidence offered by the complainant and by the licensee.

2.

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 days after the date of service of the citation issued pursuant to NRS 369.240 [,] :

(a) If the hearing was held before the board of county commissioners or the governing body of a city, the board or governing body, as applicable, shall render its decision in writing recommending the suspension or revocation of the license, or [dismissing] the dismissal of the complaint, with a statement of the board’s or the governing body’s reasons therefor.

(b) If the hearing was held before the Department, the Department shall render its decision in writing suspending or - 83rd Session (2025) – 8 – revoking the license, or dismissing the complaint, with a statement of the Department’s reasons therefor.

3.

The board of county commissioners , [or] the governing body of a city [,] or the Department, as applicable, shall give to the of [such recommendation,] the decision rendered pursuant toeys, notice subsection 2 by mail, in the same manner as prescribed in this chapter for the giving of notice of hearing.

4.

A copy of [the] a decision of the board of county commissioners or the governing body of a city recommending the suspension or revocation of a license rendered pursuant to subsection 2 shall be transmitted forthwith by the board or the governing body, as applicable, to the Department.

[Thereupon,] Upon receiving such a decision or upon rendering its own decision to suspend or revoke a license, the Department shall cause the license to be suspended or revoked and shall give notice thereof in the same manner as provided in NRS 369.240.

Sec.

3.5.

NRS 369.270 is hereby amended to read as follows:

369.270 1.

Notwithstanding any other provision of this chapter, before suspending or revoking any license, the Department, in its discretion, may:

(a) If the licensee has not appeared pursuant to the provisions of NRS 369.240, permit the licensee to appear before the board of county commissioners , [or] the governing body of a city [,] or the Department, as applicable, and make a showing on his or her behalf if it is made to appear to the Department that the licensee’s neglect to appear before the board of county commissioners , [or] the gov(b) If a hearing was had [,] before the board of county commissioners or the governing body of a city, grant the licensee a new hearing before the Department if it shall be made to appear to the Department that the decision of the board of county commissioners or the governing body of a city, as applicable, was arbitrary, unreasonable or unjust.

2.

After any new hearing before the Department, the Department shall enter a final order revoking or refusing to revoke the license affected.

Sec.

3.6.

NRS 369.280 is hereby amended to read as follows:

369.280 1.

Notwithstanding any other provision of this chapter, the board of county commissioners or the governing body of a city, as applicable, shall have the right to suspend or revoke summarily any license in cases appearing to it to be of an aggravated and flagrant violation of law.

- 83rd Session (2025) – 9 – 2.

On request, in all such cases, the Department shall conduct a hearing covering the proceedings and evidence, if any, before the board of county commissioners or the governing body of a city, as applicable, and any additional evidence offered by the board of cou3.

The hearing before the Department shall be had one.

reasonable notice of time, place and subject matter to the licensee and the board of county commissioners or the governing body of a city, as applicable, and the Department shall decide the matter without delay by either confirming, modifying or setting aside the action of the board of county commissioners or the governing body, as applicable.

4.

If the Department finds that a licensee is violating any of the provisions of this chapter, the Department may issue a summary suspension of the violator’s license.

The Department shall notify the board of county commissioners or the governing body of a city, as applicable, of such suspension.

Within 10 days after such notice the Department shall conduct a public hearing in the matter in the appropriate county or city, as applicable.

The board of county commissioners or the governing body of a city, as applicable, may appear before the Department at the hearing.

If the Department issues a summary suspension of a license pursuant to this subsection, the Department shall thereafter hold a hearing and render a decision regarding whether to issue a final order revoking or refusing to revoke the license affected.

Sec.

4.

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

- *AB404_R1*83rd –Session 6(2025) – (c)10 “Payment”– means the full legal discharge of the debt by the wholesale dealer’s receipt of cash or its equivalent, includingincludingthe ordinary and recognized means for discharge of indebtedness excepting notes, pledges or other promises to pay at a future date.

(d)business Participate,of directlya orretail indirectly,liquor store.directly, in the operation of the business(e) ofSell liquor to a retail liquor store.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.

(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.

ExceptAt asthe otherwisetime provideda inwholesale paragraphdealer (f)makes a delivery of subsectionbeer, 3,wine paymentor fromdistilled spirits to a retail liquor storestore, tothe a wholesale dealer forand theretail deliveryliquor ofstore beer,shall winereview orthe distilledinvoice spiritsof mustthe bedelivery madeto byverify electronicits fundsaccuracy. transfer.

If the invoice is accurate, the retail liquor store shall sign the invoice to confirm the accuracy of the invoice.

5.

Except as otherwise provided in paragraph (f) of subsection 3, unless a retail liquor store elects to pay by credit card wholesale dealer for the delivery of beer, wine or distilled spirits must be made by electronic funds transfer.

A wholesale dealer shall not pay or be required to pay, directly or indirectly, any fees incurred by the - 83rd Session (2025) – 11 – retail liquor store for an electronic funds transfer made pursuant to this section.

5.6.

A retail liquor store may elect to pay for the delivery of beer, wine or distilled spirits by credit card.

If a retail liquor store wholesale dealer of the election.

The retail liquor store isnotify the responsible for all costs associated with processing the credit card transaction.

7.

- *AB404_R1* – 7 – [5.] 6.8.

[6.] 7.9.

369.520 All persons obtaining or manufacturing liquor under any license or permit and all retail liquor dealers shall preserve for inspection and audit by the Department and its agents, for a period of 4 years, all invoices and lists of liquors purchased ,,r a period manufactured or received, specifying:

Notwithstanding the provisions of paragraph (f) of subsection 3 of NRS 597.230 as amended by section 2 of this act, a person who, on March 31, 2025, holds a license issued pursuant to chapter 369 of NRS to operate one or more brew pubs and any license or permit required to operate three retail liquor store locations under the common control of the person may engage in the activities authorized by paragraph (f) of subsection 3 of NRS 597.230 as amended by section 2 of this act at the third retail liquor - 83rd Session (2025) – 12 – store location so long as the license or permit to operate that location is not transferred to another person or location.

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