Nevada committee hears compromise bill to modernize rules for brewpubs, craft beer shipping

The Senate Committee on Commerce and Labor heard Assembly Bill 404, a multi‑stakeholder compromise aimed at modernizing Nevada’s regulatory framework for brewpubs and craft breweries. Assemblymember Howard Watts, the bill sponsor, told the committee the measure is intended to help small, independent craft brewers expand while preserving the state’s three‑tier distribution system.

Watts summarized key components: clarifying existing practice for taprooms and allowing an additional retail location (with some caps), making explicit that products moved from a brewery to a taproom must pass through a wholesaler and be subject to the same buy‑back process required by Nevada’s three‑tier system, and requiring electronic funds transfer or card transactions for wholesalers’ deliveries to address safety and traceability concerns. He described the bill as a compromise developed with craft brewers, wholesalers and other stakeholders.

Supporters from across Nevada’s brewing industry and related businesses urged the committee to back the bill. Sam DeWitt, state government affairs director for the Brewers Association, said Nevada’s craft beer industry “lags behind all of its neighbors in production” and urged the committee to modernize regulations so local breweries can grow. Multiple Nevada brewery owners and managers — including Paul Young of Shoe Tree Brewing, Robert Snyder of Big Dog Brewing, Linda Lovelady of Lovelady Brewing, Wendy Forrest of Craft House Brewery (and former president of the Nevada Craft Brewers Association), Brianna Wagner of Shoe Spoon Brewing, and Kyle Dolder of Las Vegas Brewing Company — described the bill as a tool to increase revenue streams, expand tasting‑room footprints and allow Nevada producers to ship product to out‑of‑state consumers.

Witnesses and the sponsor emphasized mechanics and limits. Watts and other witnesses explained that under the clarified practice, a brewery that opens a separate taproom would move product to a wholesaler and then the taproom would acquire that product through the wholesaler as a retailer; the process preserves tax collection and wholesaler volume. Watts said the bill limits the number of additional locations and allows existing businesses with more locations to maintain them under a grandfathering provision. Section 4 of the bill, he said, addresses safety and accountability by requiring electronic payment methods for wholesale deliveries.

The bill would also restore a limited route for breweries to ship directly to consumers across state lines; several witnesses said direct‑to‑consumer shipping for breweries had been allowed historically but was rescinded in early 2021. Supporters argued that restoring limited direct shipping would increase revenue, boost state sales tax collections and promote Nevada‑made products to tourists and out‑of‑state customers.

Wholesaler representatives and their counsel testified as neutral. Alex Canedo of Womble Bond Dickinson, representing Southern Glazer Wine & Spirits and the Nevada Beer Wholesalers Association, described the measure as a “hard‑fought compromise.” Brett Scolari of Strategies 360, speaking for Breakthrough Beverage (a wholesaler), said his client moved to neutral after negotiations and thanked the sponsor for stakeholder engagement.

Committee members asked clarifying questions about the taproom mechanics and tax implications; Watts and witnesses said the measure was drafted to preserve the three‑tier system and state tax compliance. No committee vote was taken; staff announced a behind‑the‑bar work session on the Senate floor for further action.