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A.B. 78
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ASSEMBLY BILL NO. 78–COMMITTEE ON REVENUE
(ON BEHALF OF THE DEPARTMENT OF TAXATION)
PREFILED NOVEMBER 20, 2024
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Referred to Committee on Revenue
SUMMARY—Revises provisions relating to licenses for the
distribution of alcoholic beverages. (BDR 32-283)
FISCAL NOTE: Effect on Local Government: No.
Effect on the State: No.
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EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.
AN ACT relating to alcoholic beverages ; revising provisions
governing the review and approval of applications for
certain licenses related to the distribution of alcoholic
beverages; authorizing the Department of Taxa tion to
conduct certain investigations and hearings; revising
provisions governing the suspension or revocation of
certain licenses related to the distribution of alcoholic
beverages; and providing other matters properly relating
thereto.
Legislative Counsel’s Digest:
Existing law requires certain persons and businesses that are importers of 1
liquor, wholesale dealers of beer or wines and liquors, wineries, instructional wine -2
making facilities, breweries, brew pubs, craft distilleries and estate distillerie s to 3
obtain a state license or permit from the Department of Taxation. (NRS 369.180) 4
Under existing law, an applicant for such a license is required to submit an 5
application to: (1) the board of county commissioners of the county in which the 6
applicant maintains his or her principal place of business if the applicant does not 7
maintain his or her principal place of business within the boundaries of an 8
incorporated city; or (2) the governing body of the city in which the applicant 9
maintains his or her princip al place of business if the applicant maintains his or her 10
principal place of business within the boundaries of an incorporated city. (NRS 11
369.190) Existing law requires the board of county commissioners or the governing 12
body of the city, as applicable, to approve or disapprove the application and, if the 13
application is approved, forward the application to the Department for review and 14
issuance of the license. (NRS 369.200) 15
Existing law requires the board of county commissioners or the governing body 16
of a city, as applicable, to require satisfactory evidence that an applicant meets 17
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certain requirements, including that the applicant is not a supplier of alcoholic 18
beverages applying for a license to engage in the business of importing, 19
wholesaling or retailin g alcoholic beverages in violation of existing law. ( NRS 20
369.190, 369.382) Section 1 of this bill additionally requires the board of county 21
commissioners or the governing body of a city, as applicable, to require satisfactory 22
evidence that an applicant is not an importer or wholesaler of alcoholic beverages 23
applying for a license to engage in another business in violation of existing law 24
governing the distribution of alcoholic beverages. (NRS 597.220) 25
Section 2 of this bill requires the board of county commissioners or the 26
governing body of a city to: (1) deter mine whether to recommend that an 27
application be approved or disapproved by the Department rather than approve or 28
disapprove applications; and (2) forward to the Department each application, the 29
recommendation and all documents supplied by the applicant wh ich were reviewed 30
by the board or governing body in determining whether to recommend that the 31
application be approved or disapproved. 32
Existing law authorizes the board of county commissioners or the governing 33
body of a city, as applicable, to investigate complaints against a licensee, conduct 34
hearings and recommend to the Department, under certain circumstances, the 35
revocation or suspension of a license. (NRS 369.230 -369.290) Sections 3-7 of this 36
bill provide for the Department to also perform these functions in the same manner 37
as a board of county commissioners or governing body of a city and authorize the 38
Department to revoke or suspend a license without receiving a recommendation 39
from a board of county commissioners or governing body of a city. Section 4 40
authorizes the Department, the board of county commissioners or the governing 41
body of a city, as applicable, to extend the time for a licensee to file an answer to a 42
complaint under certain circumstances, and section 6 revises the period within 43
which a decision on the complaint must be rendered if the time for filing an answer 44
is extended. Section 6 also removes the requirement for the Department to suspend 45
or revoke a license upon receiving a recommendation for such action from a board 46
of county commissioners or governing body of a city, and instead au thorizes the 47
Department to suspend or revoke a license upon receiving such a recommendation. 48
(NRS 369.260) 49
Existing law authorizes the board of county commissioners or the governing 50
body of a city, as applicable, to suspend or revoke summarily a license i n cases 51
where an aggravated and flagrant violation of law appears to have occurred, subject 52
to review by the Department at a hearing. (NRS 369.280) Section 8 of this bill 53
similarly authorizes the Department to suspend or revoke summarily the license of 54
a person in cases where an aggravated and flagrant violation of law appears to have 55
occurred, subject to the same requirements in existing law for notice and a public 56
hearing. 57
Existing law authorizes counties and incorporated cities to license and regulate 58
persons engaged in a business in their jurisdictions related to the distribution or sale 59
of alcoholic beverages. (NRS 244.350, 268.090) Sections 9 and 10 of this bill 60
prohibit counties and cities from issuing a lice nse to a person who is required to 61
obtain a license from the Department unless the Department has issued such a 62
license and the license is in good standing. 63
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. NRS 369.190 is hereby amended to read as follows: 1
369.190 1. An application for any of the licenses described in 2
NRS 369.180 must be made to: 3
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(a) The board of county commissioners of the county in which 1
the applicant maintains his or her principal place of business if the 2
applicant does not maintain his or her principal place of business 3
within the boundaries of an incorporated city; or 4
(b) The governing body of the city in which the applicant 5
maintains his or her principal place of business if the applicant 6
maintains his or her principal place of business within the 7
boundaries of an incorporated city. 8
2. Each application must: 9
(a) Be made on such form as the Department prescribes. 10
(b) Include the name and address of the applicant. If the 11
applicant is: 12
(1) A partnership, the application must include the names 13
and addresses of all partners. 14
(2) A corporation, association or other organization, the 15
application must include the names and addresses of the president, 16
vice president, secretary and managing officer or officers. 17
(3) A person carrying on or transacting business in this state 18
under an assumed or fictitious name, the person making the 19
application must attach to the application: 20
(I) A certified copy of the certificate required by NRS 21
602.010 or any renewal certificate required by NRS 602.035. 22
(II) A certificate signed by an officer of the corporation or 23
by each person interested in, or conducting or carrying on such 24
business, or intending so to do, and acknowledged before a person 25
authorized to take acknowledgments of conveyances of real 26
property, indicating the name of the authorized representative whose 27
signature may be required on the license under the provisions of this 28
chapter. 29
(c) Specify the location, by street and number, of the premises 30
for which the license is sought. 31
(d) Be accompanied by the annual license fee required for the 32
particular license for which application is made. 33
3. The board of county commissioners or the governing body 34
of a city, as applicable, shall examine all applications filed with it, 35
and shall require satisfactory evidence that the applicant is: 36
(a) A person of good moral character; 37
(b) Not acting in violation of NRS 369.180; [and] 38
(c) Not applying for a license for a business in which the 39
applicant is prohibited from engaging pursuant to NRS 369.382 [.] ; 40
and 41
(d) Not applying for a license for a business in which the 42
applicant is prohibited from engaging pursuant to NRS 597.220. 43
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Sec. 2. NRS 369.200 is hereby amended to read as follows: 1
369.200 1. The board of county commissioners or the 2
governing body of a city, as applicable, shall [approve or disapprove 3
applications. If an application is disapproved by the board of county 4
commissioners or the governing body of a city , the board or the 5
governing body, as applicable, forthwith shall return the li cense fee 6
accompanying the application to the applicant. If the board of 7
county commissioners or the governing body of a city approves an 8
application, the] review an application submitted pursuant to NRS 9
369.190 and determine whether to recommend that the application 10
be approved or disapproved by the Department. The board or the 11
governing body, as applicable, shall forward [it] to the Department 12
[, together with the board’s or the governing body’s] : 13
(a) The application; 14
(b) All documents supplied by the applicant which were 15
reviewed by the board or governing body in determining whether 16
to recommend that the application be approved or disapproved; 17
(c) The written [approval thereof and the ] recommendation of 18
the board or governing body; and 19
(d) The license fee accompanying the application. 20
2. Upon receipt thereof the Department shall review the 21
application and [approval,] recommendation and, if [no further 22
objections are presented or known, ] all requirements of law are 23
met, shall issue the appropriate license to the applicant. If an 24
application is disapproved by the Department, the Department 25
forthwith shall return the license fee accompanying the 26
application to the applicant. 27
[3. In its discretion, the Department may grant an applicant 28
whose application has been disapproved a new hearing before the 29
Department if it shall be made to appear to the Department that the 30
decision of the board of county commissioners or the governing 31
body of a city, as applicable, was arbitrary, unreasonable or unjust.] 32
Sec. 3. NRS 369.230 is hereby amended to read as follows: 33
369.230 The Department, the board of county commissioners 34
or the governing body of a city, as applicable, may, upon its own 35
motion, and shall, upon the verified complaint in writing of any 36
person, investigate the action of any licensee under this chapter . [, 37
and] The Department shall have the power to temporarily suspend 38
or permanently revoke a license and the board of county 39
commissioners or the governing body of a city, as applicable, shall 40
have power to recommend the temporary suspension or permanent 41
revocation of a license for any one of the following acts or 42
omissions: 43
1. Misrepresentation of a material fact by the applicant in 44
obtaining a license under this chapter; 45
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2. If the licensee violates or causes or permits to be violated 1
any of the provisions of this chapter; 2
3. If the licensee commits any act which would be sufficient 3
ground for the denial of an application for a license under this 4
chapter; 5
4. If the licensee sells liquor to a wholesaler or retailer who is 6
not a holder of a proper license or permit at such time; or 7
5. If the licensee fails to pay the excise tax or any penalty in 8
connection therewith, in whole or in part, imposed by law, or 9
violates any regulation of the Department respecting the same. 10
Sec. 4. NRS 369.240 is hereby amended to read as follows: 11
369.240 1. Upon the filing with the Department, the board of 12
county commissioners of the county in which a licensee maintains 13
his or her principal place of business or [with] the governing body 14
of the city in which the licensee maintains his or her principal place 15
of business , if the licensee maintains his or her principal place of 16
business within an incorporated city , of a verified complaint 17
charging the licensee with the commission, within 1 year prior to the 18
date of filing the complaint, of any act which is cause for suspension 19
or revocation of a li cense, the Department, the board of county 20
commissioners or the governing body, as applicable, forthwith shall 21
issue a citation directing the licensee, within 10 days after service 22
thereof upon him or her, to appear by filing with the Department, 23
the board of county commissioners or the governing body, as 24
applicable, a verified answer to the complaint showing cause, if any 25
he or she has, why his or her license should not be suspended or 26
revoked. Service of the citation with a copy of the complaint shall 27
be made upon the licensee as provided by the Nevada Rules of Civil 28
Procedure for the service of process in civil actions. Upon 29
application of a licensee, the Department, the board of county 30
commissioners or the governing body, as applicable, may, for good 31
cause shown, extend by not more th an 30 days the time for filing 32
an answer to the complaint. 33
2. Failure of the licensee to timely file an answer [within the 34
time specified] shall be deemed an admission by the licensee of the 35
commission of the act or acts ch arged in the complaint. Thereupon, 36
if the complaint was filed with the board of county commissioners 37
or the governing body of a city, the board of county commissioners 38
or the governing body, as applicable, shall give written notice of the 39
failure of the licensee to answer to the Department. The Department 40
forthwith shall suspend or revoke the license, as the case may be, 41
and shall give notice of such suspension or revocation by mailing a 42
true copy thereof, by United States registered or certified mail in a 43
sealed envelope with postage thereon fully prepaid, addressed to the 44
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licensee at his or her latest address of record in the office of the 1
Department. 2
Sec. 5. NRS 369.250 is hereby amended to read as follows: 3
369.250 1. Upon the filing of the answer, the Department, 4
the board of county commissioners or the governing body of a city, 5
as applicable, shall fix a time and place for a hearing and give the 6
licensee and the complainant not less than 5 days’ notice thereof. 7
The notice may be served by [depositing] : 8
(a) Depositing in the United States mail a true copy of the notice 9
enclosed in a sealed envelope with postage thereon fully prepaid, 10
addressed to the licensee and to the complainant, respectively, at 11
their last known addresses [.] ; or 12
(b) Electronic mail if the licensee or complainant, as 13
applicable, agrees to receive service in this manner. 14
2. With the notice to the complainant , there shall be attached 15
or enclosed a copy of the answer. If either party has appeared by 16
counsel the notice shall be given, in like manner, to counsel instead 17
of to the party. 18
Sec. 6. NRS 369.260 is hereby amended to read as follows: 19
369.260 1. Upon the hearing, the Department, the board of 20
county commissioners or the governing body of a city, as 21
applicable, shall hear all relevant and competent evidence offered by 22
the complainant and by the licensee. 23
2. After the hearing is concluded and the matter submitted, [the 24
board of county commissioners or the governing body of a city, as 25
applicable, shall,] within 10 days after such submission and within 26
60 days after the date of service of the citation issued pursuant to 27
NRS 369.240 [,] or, if the time for filing an answer to the 28
complaint was extended, within 90 days after the date of service of 29
such citation: 30
(a) If the hearing was held before the board of county 31
commissioners or the governing body of a city, the board or 32
governing body, as applicable, shall render its decision in writing 33
recommending the suspension or revocation of the license, or 34
dismissing the complaint, with a statement of t he board’s or the 35
governing body’s reasons therefor. 36
(b) If the hearing was held before the Department, the 37
Department shall render its decision in writing suspending or 38
revoking the license, or dismissing the complaint, with a statement 39
of the Department’s reasons therefor. 40
3. The Department, the board of county commissioners or the 41
governing body of a city, as applicable, shall give to the 42
complainant and to the licensee, or their respective attorneys, notice 43
of such [recommendation,] decision, by mail [,] or electronic mail, 44
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in the same manner as prescribed in this chapter for the giving of 1
notice of hearing. 2
4. A copy of the decision of the board of county commissioners 3
or the governing body of a city recommending the suspension or 4
revocation of a license shall be transmitted forthwith by the board or 5
the governing body, as applicable, to the Department. [Thereupon,] 6
Upon receiving such decision, the Department [shall] may cause 7
the license to be suspended or revoked and , if the Department 8
suspends or revokes the license, the Department shall give notice 9
thereof in the same manner as provided in NRS 369.240. 10
Sec. 7. NRS 369.270 is hereby amended to read as follows: 11
369.270 1. Notwithstanding any other provision of this 12
chapter, before suspending or revoking any license, the Department, 13
in its discretion, may: 14
(a) If the licensee has not appeared pursuant to the provisions of 15
NRS 369.240, permit the licensee to appear before the Department, 16
the board of county comm issioners or the governing body of a city, 17
as applicable, and make a showing on his or her behalf if it is made 18
to appear to the Department that the licensee’s neglect to appear 19
before the Department, the board of county commissioners or the 20
governing body was excusable. 21
(b) If a hearing was had [,] before the board of county 22
commissioners or the governing body of a city, grant the licensee a 23
new hearing before the Department if it shall be made to appear to 24
the Department that the decision of the board of county 25
commissioners or the governing body of a city, as applicable, was 26
arbitrary, unreasonable or unjust. 27
2. After any new hearing before the Department, the 28
Department shall enter a final order revoking or refusing to revoke 29
the license affected. 30
Sec. 8. NRS 369.280 is hereby amended to read as follows: 31
369.280 1. Notwithstanding any other provision of this 32
chapter, the board of county commissioners or the governing body 33
of a city, as applicable, shall have the righ t to suspend or revoke 34
summarily any license in cases appearing to it to be of an 35
aggravated and flagrant violation of law. 36
2. On request, in all such cases, the Department shall conduct a 37
hearing [covering] to review the proceedings and evidence, if any, 38
[before] relied upon by the board of county commissioners or the 39
governing body of a city, as applicable, in summarily suspending 40
or revoking the license and any additional evidence offered by the 41
board of county commissioners, the governing body or the licensee. 42
3. The hearing before the Department pursuant to subsection 2 43
shall be had on reasonable notice of time, place and subject matter 44
to the licensee and the board of county commissioners or the 45
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governing body of a city, as applicable, and the Department shall 1
decide the matter without delay by either confirming, modifying or 2
setting aside the action of the board of county commissioners or the 3
governing body, as applicable. 4
4. [If] Notwithstanding any other prov ision of this chapter, 5
the Department [finds that a licensee is violating any of the 6
provisions of this chapter, the Department may issue a summary 7
suspension of the violator’s license.] shall have the right to suspend 8
or revoke summarily any license in ca ses appearing to it to be of 9
an aggravated and flagrant violation of law. The Department shall 10
notify the board of county commissioners or the governing body of 11
a city, as applicable, of such suspension [.] or revocation. Within 10 12
days after such notice the Department shall conduct a public hearing 13
in the matter . [in the appropriate county or city, as applicable. ] The 14
board of county commissioners or the governing body of a city, as 15
applicable, may appear before the Department at the hearing. 16
Sec. 9. NRS 244.350 is hereby amended to read as follows: 17
244.350 1. The board of county commissioners and, in a 18
county whose population is less than 700,000, the sheriff of that 19
county, constitute a liquor board. The liquor board may, without 20
further compensation, grant or refuse liquor licenses, and revoke 21
those licenses whenever there is, in the judgment of a majority of 22
the board, sufficient reason f or revocation. The board shall elect a 23
chair from among its members. 24
2. Except as otherwise provided in this section, t he liquor 25
board in each of the several counties shall enact ordinances: 26
(a) Regulating the sale of intoxicating liquors in their respe ctive 27
counties. 28
(b) Fixing the hours of each day during which liquor may be 29
sold or disposed of. 30
(c) Prescribing the conditions under which liquor may be sold or 31
disposed of. 32
(d) Prohibiting the employment or service of minors in the sale 33
or disposition of liquor. 34
(e) Prohibiting the sale or disposition of liquor in places where, 35
in the judgment of the board, the sale or disposition may tend to 36
create or constitute a public nuisance, or where by the sale or 37
disposition of liquor a disorderly house or place is maintained. 38
3. In a county whose population is 700,000 or more, the liquor 39
board shall refer any petition for a liquor license to the metropolitan 40
police department. The department shall conduct an investigation 41
relating to the petition and report its findings to the liquor board at 42
the next regular meeting of the board. 43
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4. All liquor dealers within any incorporated city are exempt 1
from the effect of this section, and are to be regulated only by the 2
government of that city. 3
5. The liquor board may deny or refuse to renew the license of 4
a person who has willfully violated the provisions of NRS 369.630 5
more than three times in any 24-month period. 6
6. The liquor board shall not deny a license to a person solely 7
because the person is not a citizen of the United States. 8
7. The liquor board shall not issue a license to a person who 9
is required to obtain a license from the Department of Taxation 10
pursuant to chapter 369 of NRS unless the Department has issued 11
such a license and the license is in good standing. 12
8. The Legislative Counsel Bureau is exempt from the 13
provisions of this section with respect to the purchase and sale of 14
souvenir wine pursuant to NRS 218F.430. 15
Sec. 10. NRS 268.090 is hereby amended to read as follows: 16
268.090 1. In addition to any authority or power now 17
provided by the charter of any incorporated city in this State , 18
whether incorporated by general or special act, or otherwise, except 19
as otherwise provided in this section, there is hereby granted to each 20
of the cities incorporated under any law of this State the power and 21
authority to fix, impose and collect a license tax on, and regulate the 22
sale of, beer, wines or other beverages now or hereafter authoriz ed 23
to be sold by act of Congress. 24
2. An incorporated city may deny or refuse to renew the license 25
of a person who has willfully violated the provisions of NRS 26
369.630 more than three times in any 24-month period. 27
3. An incorporated city shall not deny a license to a person 28
solely because the person is not a citizen of the United States. 29
4. An incorporated city shall not issue a license to a person 30
who is required to obtain a license from the Department of 31
Taxation pursuant to chapter 369 of NRS unless the Department 32
has issued such a license and the license is in good standing. 33
5. The Legislative Counsel Bureau is exempt from the 34
provisions of this section with respect to the purchase and sale of 35
souvenir wine pursuant to NRS 218F.430. 36
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