Read the full stored bill text
- 83rd Session (2025)
Assembly Bill No. 404–Assemblymembers Watts; Brown-May,
Kasama, Nguyen and Torres-Fossett
Joint Sponsor: Senator Nguyen
CHAPTER..........
AN ACT relating to alcoholic beverages; authorizing a person who
operates a brew pub to engage in certain activities concerning
the sale of alcoholic beverages; revising provisions governing
the conduct of cer tain investigations and hearings and the
revocation and suspension of certain licenses relating to
intoxicating liquor; revising the manner in which a payment
from a retail liquor store to a wholesale dealer for delivery of
certain alcoholic beverages must be made; requiring certain
persons manufacturing liquor to preserve certain records for
inspection and audit by the Department of Taxation; and
providing other matters properly relating thereto.
Legislative Counsel’s Digest:
Existing law provides for the licensure and operation of brew pubs in this State.
(NRS 369.180, 597.230) Existing law authorizes a person who operates one or
more brew pubs to sell at retail malt beverages that are: (1) manufactured on or off
the premises of any of the brew pubs for c onsumption on the premises; and (2)
manufactured and sealed in packages on the premises of any of the brew pubs for
consumption off the premises. (NRS 597.230) Section 2 of this bill additionally
authorizes a person who operates one or more brew pubs to sell at retail any other
alcoholic beverages if the person who operates such a brew pub has obtained any
license or permit required to sell alcoholic beverages at retail i n the jurisdiction in
which the brew pub is located and purchases all such alcoholic beverages from a
licensed wholesaler. Section 2 also authorizes such a person to sell alcoholic
beverages, including, without limitation, malt beverages manufactured on or off the
premises of one or more of the brew pubs at, with certain exceptions, not more than
two retail liquor store locations under the common control of the person if: (1) the
person has obtained any license or permit required to sell alcoholic beverage s at
retail in the jurisdiction in which the retail liquor store location is located; (2) the
person purchases all such alcoholic beverages from a licensed wholesaler; (3) for a
retail liquor store location for which the person obtained any license or permi t
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 a gaming establishment;
and (4) the retail liquor store location is located within the same county as th e brew
pub, with certain exceptions. As an exception to the limit of two retail liquor store
locations set forth in section 2, section 6 of this bill provides that a person who, on
March 31, 2025, holds a license to operate a brew pub and any license or pe rmit to
operate three retail liquor store locations under the common control of the person is
authorized to engage in the activities authorized by section 2 at the third location so
long as the license for that location is not transferred to another person or location.
Existing law: (1) prohibits a person who operates one or more brew pubs from
manufacturing more than 40,000 barrels of malt beverages for all the brew pubs the
person operates in this State in a calendar year; and (2) authorizes the person to
manufacture and sell 20,000 barrels of malt beverages for all the brew pubs the
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person operates in this State provided such barrels are sold to a wholesaler located
outside of this State. (NRS 597.230) Section 2 instead authorizes the person to sell
the 20,000 barrels of malt beverages 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. Finally, section 2 requires a person who operates a brew pub
and one or more commonly controlled retail liquor store locations to comply with
certain requirements of the Department of Taxation relating to the recordkeeping
and reporting of manufacturing, purchases and receipts of liquor with respect to the
brew pub and each retail liquor store location.
Existing law provides for the licensure of persons engaged in various activities
relating to intoxicating liquor. (Chapter 369 of NRS) Existing law authorizes the
board of county commissioners or the governing body of a city, as applicable, to
investigate complaints against a licensee, conduct hearings and recommend to the
Department of Taxation, under certain circumstances, the revocation or suspension
of a license. (NRS 369.230 -369.290) Sections 3.1 -3.6 of this bil l, in general,
provide for the Department to also perform these functions in the same manner as a
board of county commissioners or governing body of a city and authorize the
Department to revoke or suspend a license without receiving a recommendation
from a board of county commissioners or governing body of a city.
Existing law authorizes the Department, under certain circumstances, to issue a
summary suspension of the license of a licensee if the Department finds that the
licensee is violating any of the provisions of existing law governing intoxicating
liquor. (NRS 369.280) Section 3.6 requires the Department, after issuing a
summary suspension, to hold a hearing and render a decision regarding whether to
issue a final order revoking or refusing to revoke the license of the licensee.
Existing law requires all persons obtaining liquor under any license or permit
and all retail liquor dealers to preserve for inspection and audit by the Department
of Taxation and its agents, for a period of 4 years, all inv oices and lists of liquors
purchased or received, specifying certain information relating to those purchases
and receipts. (NRS 369.520) Section 5 of this bill additionally imposes such
recordkeeping requirements on all persons manufacturing liquor.
Existing law prohibits a wholesale dealer from selling liquor to a retail liquor
store under certain circumstances relating to the timing of payments for the delivery
of that liquor. (NRS 369.485) Section 4 of this bill : (1) with certain exceptions,
requires payment from a retail liquor store to a wholesale dealer for the delivery of
beer, wine or distilled spirits to be made by electronic funds transfer; (2) requires
the wholesale dealer to initiate the electronic funds transfer by initiating the
withdrawal of funds from the bank account of the retail liquor store; (3) requires the
electronic funds transfer to be completed not later than the expiration of the 30th
day after the date of delivery of the beer, wine or distilled spirits; and (4) prohibits a
wholesale dealer from paying or being required to pay, directly or indirectly, any
fees incurred by the retail liquor store for such an electronic funds transfer. Section
4 also authorizes a retail liquor store to elect to pay for the delivery of beer, wine or
distilled spirits by credit card. If a retail liquor store so elects, section 4 requires the
retail liquor store to notify the wholesale dealer of the election . The retail liquor
store is responsible for all costs associated with processing the credit ca rd
transaction. Finally, section 4 requires, at the time a wholesale dealer makes a
delivery of beer, wine or distilled spirits to a retail liquor store: (1) the wholesale
dealer and retail liquor store to review the invoice of the delivery for accuracy; a nd
(2) if the invoice is accurate, the retail liquor store to sign the invoice to confirm the
accuracy of the invoice.
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EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. (Deleted by amendment.)
Sec. 2. NRS 597.230 is hereby amended to read as follows:
597.230 1. In any county, a person may operate a brew pub:
(a) In any redevelopment area established in that county
pursuant to chapter 279 of NRS;
(b) In any historic district established in that county pursuant to
NRS 384.005;
(c) In any retail liquor store as that term is defined in NRS
369.090; or
(d) In any other area in the county designated by the board of
county commissioners for the operation of brew pubs. I n 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.
Except as otherwise provided in paragraph (e) of subsection 3, a
person who op erates one or more brew pubs may not manufacture
more than 40,000 barrels of malt beverages for all the brew pubs he
or she operates in this State in any calendar year.
2. The premises of any brew pub operated pursuant to this
section must be conspicuously identified as a “brew pub.”
3. Except as otherwise provided in subsection 4, a person who
operates one or more brew pubs pursuant to this section may, upon
obtaining a license pursuant to chapter 369 of NRS and complying
with any other applicable governmental requirements:
(a) Manufacture and store malt beverages on the premises of one
or more of the brew pubs and:
(1) Sell and transport the malt beverages manufactured on
the premises to a person holding a valid wholesale wine and liquor
dealer’s license or wholesale beer dealer’s license issued pursuant to
chapter 369 of NRS.
(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 term s 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.
(3) Transfer in bulk the malt beverages manufactured on the
premises:
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(I) To a person holding a valid wholesale wine and liquor
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 to an estate distillery for the purpose of distillation and
blending, which transfer is taxable only as provided in NRS
597.237; or
(II) If there is no wholesaler who is able or willing to
accept and transfer in bulk the malt beverages pursuant to sub -
subparagraph (I), to a person holding a valid license to operate a n
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 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.
(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. For the purposes of this paragraph,
the person who operates one or more brew pubs shall not obtain
more than 20 such special permits for the transportation of the malt
beverages from the Department of Taxation pursuant to subsection 4
of NRS 369.450 within a calendar year.
(c) Sell at retail, not for resale, malt beverages manufactured on
or off the premises of one or more of the brew pubs for consumption
on the premises.
(d) Sell at retail, not for resale, in packages sealed on the
premises of one or more of the brew pubs, malt beverages, including
malt beverages in unpasteurized form, manufactured o n the
premises for consumption off the premises.
(e) Sell at retail alcoholic beverages other than those described
in paragraph (c) if the person:
(1) Has obtained any license or permit required to sell
alcoholic beverages at retail in the jurisdiction in which the brew
pub is located; and
(2) Purchases all such alcoholic beverages from a licensed
wholesaler in compliance with the provisions of NRS 369.487 and
369.488.
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(f) Sell alcoholic beverages, including, without limitation, malt
beverages manufactured on or off the premises of one or more of
the brew pubs , at not more than two retail liquor store locations
under the common control of the person if:
(1) The person has obtained any license or permit required
to sell alcoholic beverages at retail in the jurisdiction in which the
retail liquor store location is located;
(2) The person purchases all such alcoholic beverages from
a licensed wholesaler in compliance with the provisions of NRS
369.487 and 369.488;
(3) For a retail liquor store locati on 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
(4) The retail liquor store location i s located within the
same county as the brew pub, unless the brew pub is located in a
county whose population is less than 100,000.
(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.
4. The amount of malt beverages sold pursuant to paragraphs
(b), (c) and (d) of subsection 3 must not exceed a total of 5,000
barrels in any calendar year. Of the 5,000 barrels, not more than
1,000 barrels may be sold in kegs.
5. A person who operates a brew pub and one or more
commonly controlled retail liquor store locations shall:
(a) Comply with the provisions of NRS 369.520 with respect to
the brew pub and each commonly controlled retail liquor store
location; and
(b) In addition to making any reports required pursuant to
rules made by the Department of Taxation pursuant to NRS
369.360, s ubmit 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.
Sec. 3. (Deleted by amendment.)
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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
writing of any person, investigate the action of any licensee under
this chapter . [, and ] The board of county commissio ners or the
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 l icensee commits any act which would be sufficient
ground for the denial of an application for a license under this
chapter;
4. 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
city in which the licensee maintains h is or her principal place of
business if the licensee maintains his or her principal place of
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.
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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
governing body of a city, the board or governing body, as
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 pla ce 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, ad dressed 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
commissioners , [or] the governing body of a city [,] or the
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 cit y, 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 [,] :
(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
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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
complainant and to the licensee, or their respective attorneys, notice
of [such recommendation, ] the decision rendered pursuant to
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
governing body or the Department was excusable.
(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 bo dy
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.
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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
county commissioners, the governing body or the licensee.
3. The hearing be fore the Department shall be had on
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 summar y
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. NRS 369.485 is hereby amended to read as follows:
369.485 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 cer tain
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) “Electronic funds transfer” means the elect ronic transfer
of money from one bank account to another, either within a single
financial institution or across multiple financial institutions
through computer-based systems.
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(c) “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)] (d) “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, including through a
subsidiary or agent, in a retail liquor store.
(c) Furnish or provide any premises, building, bar or eq uipment
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 r etail 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. At the time a wholesale dealer makes a delivery of beer,
wine or distilled spirits to a retail liquor store, the wholesale dealer
and retail liquor store shall review the invoice of the delivery to
verify its accuracy. 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
pursuant to subsection 6, payment from a retail liquor store to a
wholesale dealer for the delivery of beer, wine or distilled spirits
must be made by electronic funds transfer. The wholesale dealer
shall initiate the electronic funds transfer by initiating the
withdrawal of funds from the bank account of the retail liquor
store. The electronic funds transfer must be completed not later
than the expiration of the 30th day after the date of delivery of the
beer, wine or distilled spirits for which the electronic funds
transfer constitutes payment. A wholesale dealer shall not pay or
be required to pay, directly or indirectly, any fees incurred by the
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retail liquor store for an electronic funds transfer made pursuant
to this section.
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
elects to pay by credit card, the retail liquor store shall notify the
wholesale dealer of th e election. The retail liquor st ore is
responsible for all costs associated with processing the credit card
transaction.
7. 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 stor e which is delinquent a service
charge of 1.5 percent of the amount of the unpaid balance.
[5.] 8. 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.] 9. 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.
Sec. 5. NRS 369.520 is hereby amended to read as follows:
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 ,
manufactured or received, specifying:
1. Kind and quantity of liquor.
2. [Names] For liquors purchased or received, names of
persons from whom received.
3. Place and date.
Sec. 6. 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 o f this act at the third retail liquor
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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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