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AB 404

Relating to: the Veterans Outreach and Recovery Program and making an appropriation. (FE)

2025-2026 Regular Session Introduced by Clint Anderson and 30 co-sponsors

AB 404 expands brew pubs' retail sales and allows up to two common-control liquor stores, with EFT payments, stricter records, and expanded Taxation Dept enforcement.

Failed to pass pursuant to Senate Joint Resolution 1
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WeVote Research Nonpartisan
Bill Summary · AB 404

AB 404 — Summary (Chapter 425, 2025)

Status: Approved by the Governor (Chapter 425). Introduced Feb 4, 2025; enacted June 9, 2025.

Purpose

AB 404 revises Nevada law governing brew pubs and certain liquor trade practices to expand what brew pub operators may sell and where, tighten recordkeeping and reporting, and modify payment procedures between retail liquor stores and wholesalers. The bill also clarifies administrative investigatory and enforcement authority related to liquor licenses.

Key provisions

  • Expanded retail sales by brew pubs

    • A person who operates one or more brew pubs may sell other alcoholic beverages at retail at the brew pub if the brew pub holds required local retail licenses/permits and purchases those alcoholic beverages from a licensed wholesaler.
    • A brew pub operator may operate, with restrictions, up to two retail liquor store locations under common control where alcoholic beverages (including malt beverages made on- or off-site) may be sold. Conditions include:
    • Each retail location must have required local retail licenses/permits and buy from a licensed wholesaler.
    • For retail locations licensed on or after Jan 1, 2025, the location must be at least 1,000 feet from a gaming establishment.
    • Retail locations generally must be in the same county as the brew pub (exceptions for counties with population <100,000).
    • Transitional carve-out: operators holding three commonly controlled retail licenses as of March 31, 2025, may continue to operate the third location so long as that license is not transferred.

  • Production and interstate sales

    • The existing 40,000-barrel annual manufacturing cap for all brew pubs operated by the same person remains. In addition, up to 20,000 barrels may be manufactured and sold if sold to an out–of–state wholesaler or, where allowed by law, to persons residing outside Nevada. Such sales are subject to periodic audits by the Department of Taxation.

  • Recordkeeping and reporting

    • Brew pubs and any commonly controlled retail locations must maintain complete records per NRS 369.520 and submit monthly reports of sales of manufactured malt beverages at each location to the Department of Taxation.
    • All persons manufacturing liquor must preserve invoices and purchase/receipt lists for inspection and audit for 4 years.

  • Payment method for deliveries

    • With certain exceptions, payments from retail liquor stores to wholesalers for deliveries of beer, wine, or distilled spirits must be made by electronic funds transfer (EFT):
    • Wholesaler initiates the EFT (withdrawal from retailer’s account).
    • EFT must be completed within 30 days of delivery.
    • Wholesalers may not be required to pay retailer EFT fees.
    • Retailers may elect to pay by credit card if they notify the wholesaler and bear processing costs.
    • Delivery invoices must be reviewed at delivery; retailer should sign if accurate.

  • Administrative/enforcement changes

    • The bill expands/clarifies the Department of Taxation’s authority to investigate complaints, conduct hearings, and to suspend or revoke licenses (including summary suspension procedures and related hearings).

Who is affected

  • Brew pub operators (expanded commercial options and new compliance obligations)
  • Retail liquor stores under common control of brew pub operators
  • Wholesalers (new payment/EFT and invoice procedures)
  • Department of Taxation (increased auditing, reporting oversight, enforcement authority)
  • Local governments (licensing, siting/permit decisions)
  • Consumers (greater retail access to brew pub products; potential interstate access)

Procedural/timeline notes

  • Multiple committee amendments refined licensing limits, distance-from-gaming and record/EFT provisions during 2025 session.
  • Enrolled June 5, 2025; approved by Governor June 9, 2025 (Chapter 425). Compliance timelines depend on Department of Taxation regulations implementing reporting/audit procedures.

Potential impacts (high level)

  • Pros: provides additional market channels for craft breweries, supports retail expansion and interstate direct sales (where lawful), modernizes payment practices.
  • Cons/Considerations: imposes new administrative burdens (monthly reporting, record retention), raises trade-channel and wholesaler concerns addressed by purchase-from-wholesaler rules and EFT/payment mechanics; local siting and gaming-proximity rules constrain some retail expansions.

Compiled from official sources — confirm details with the bill’s official record.

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