Senate committee hears compromise bill to clarify taproom rules and allow limited direct-to-consumer beer shipping

The Nevada Senate Committee on Commerce and Labor heard Assembly Bill 404 on Monday, a stakeholder-driven bill sponsored by Assemblymember Howard Watts (D-15) intended to update state law for craft breweries, clarify taproom operations, and permit limited direct-to-consumer shipping of beer outside Nevada.

Watts told the committee the bill codifies common practice around taprooms and allows small producers to open a limited number of additional retail locations to sell the beer they produce at off-site taprooms so long as the product moves through a licensed wholesaler. “What this is clarifying is that, yes, our local small businesses can open a taproom,” Watts said. The bill limits new taproom locations to two; locations that already have more than two would be grandfathered in under the current draft.

The bill also states that taprooms may sell other alcoholic beverages so long as those products are purchased through a wholesaler, and it makes explicit that the Department of Taxation and local licensing authorities retain enforcement power. One provision discussed at length would require electronic funds transfer, credit card, or another non-cash method for wholesalers when delivering alcoholic beverages to retailers; supporters said that provision addresses safety and tax-collection concerns.

Multiple Nevada brewers and industry groups testified in support. Sam DeWitt, state government affairs director for the Brewers Association, described the bill as a compromise that retains the three-tier system (producer, wholesaler, retailer) while providing clarity and growth opportunities: “Nevada has great, and I mean great craft beer … the industry here lags behind all of its neighbors in production,” DeWitt said, urging legislative modernization.

Local brewers highlighted economic opportunities the bill could unlock. Paul Young of Shoe Tree Brewing and Robert Snyder of Las Vegas Big Dog Brewing said direct-to-consumer shipping would create a new revenue stream and help breweries respond to consumer requests from outside Nevada. Wendy Forrest, co-owner of Craft House Brewery and former president of the Nevada Craft Brewers Association, told the committee Nevada produces only 2 percent of the beer sold in-state and ranks 40th nationally in beer production per capita while Clark County ranks among the top three nationally for alcohol consumption per capita.

Wholesalers and beverage-distribution interests testified as neutral. Alex Canito of Womble Bond Dickinson spoke for Southern Glazer Wine & Spirits and the Nevada Beer Wholesalers Association as neutral, calling the measure a hard-fought compromise. Brett Scolari of Breakthru Beverage described moving enthusiastically to neutral after stakeholder negotiations and noted the wholesalers’ workforce that would be affected by redistribution of routes and volumes.

Committee members asked procedural questions about the producer-to-taproom flow and tax collection; Watts and witnesses reiterated that the three-tier transaction would continue — producer sells to wholesaler, wholesaler sells to retailer, and the retailer sells at the taproom — and that tax collection would remain tied to those steps. The committee closed public testimony and said a "behind the bar" work session would be held later on the Senate floor to consider amendments and move the bill forward.

Supporters said AB 404 would help small, Nevada-based producers compete with out-of-state producers, promote Nevada-made products, and create jobs; wholesalers emphasized enforcement, tax compliance, and driver-safety concerns and took a neutral stance after negotiations produced compromise language.