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On April 4, 2023, the Clark County Board of Commissioners (the “Board”) discussed three liquor related potential amendments: (1) to restrict where package liquor licensees may display liquor; (2) to allow apartment complexes to operate beer gardens for its residents and guests; and (3) to allow deliveries of alcoholic beverages by retail liquors stories and third parties.
The first topic involved a possible amendment to the Clark County Liquor Code to heighten the regulation of non-liquor store package liquor licensees, typically a grocery store or convenience store, and to require them to only display liquor in a locked or enclosed area. The discussion resulted from concerns that licensees display liquor in areas that are too accessible by minors, such as endcaps on aisles outside of the designated liquor section.
Due to the burden this would result in for business owners, the Clark County Business License Department (“CCBL”) inspected 180 businesses with package liquor licenses before drafting an ordinance. The CCBL found that the majority of licensees are in substantial compliance with laws and their own alcohol security plan to prevent access by minors.
The CCBL concluded that a requirement for liquor to be stored in a locked/enclosed area is not feasible due to space limitations and the burden it would place on already compliant businesses. The CCBL also found that remedies for violations are already found within the Clark County Liquor Code. Additionally, liquor licensees are bound to adhere to the alcohol security plans they already have in place to prevent access to minors. The CCBL also continues to recommend that package liquor is displayed in a specific designated and isolated area to prevent access by minors. The Board did not appear inclined to adopt an amendment to require package liquor licensees to display their alcohol only in a locked or enclosed area.
Instead, the CCBL stated that the intent behind any proposed regulation would address a perceived unfairness between liquor stores and non-liquor store package licensees. The Board requested the CCBL come back with a report to see whether deregulation, rather than more regulation, could level the playing field between liquor stores and non-liquor store package licensees.
The second topic involved a possible amendment to the Clark County Liquor Code to allow for the operation of beer gardens at residential apartment complexes not open to the public. The management would sell alcoholic beverages to the residents and the residents’ guests. The CCBL reported to the Board that the management of an apartment complex is currently not required to obtain a liquor license to sell alcoholic beverages to residents of the apartment complex, however, an amendment may help to clarify the uncertainty around the area and regulate the practice. The CCBL stated that the apartment complexes would be required to close the beer garden to the general public, check for photo identification, and monitor for intoxication. One Commissioner expressed concern that the proposed amendment would violate the three-tier principle and could jeopardize state tax revenue. The Board recommended the amendment to address these concerns and to work out language for the mixed-use zoning district to allow this type of use to be conducted as residential apartment complexes.
The final topic involved amending the Clark County Liquor Code to allow for delivery of alcohol by retail liquor licensees and third-party delivery companies. Pursuant to NRS 369.489, the Nevada Department of Tax adopted a regulation that authorizes delivery by retail liquor stores and third-party delivery companies. The Board previously considered a regulation authorizing deliveries of alcoholic beverages but rejected the proposal. However, the Nevada Department of Tax regulation now requires local jurisdictions to adopt ordinances to allow delivery by retail stores and third parties, provided the delivery occurs in a jurisdiction where the retail store holds a retail liquor license.
Additionally, deliveries must be made to a person with identification indicating they are 21 years of age or older at the address specified in the order. Deliveries cannot be made to intoxicated persons. Any person who makes deliveries must contain records for four years which include (i) the name of the purchaser; (ii) the name and date of birth of the person who accepts the delivery as shown on their identification; (iii) the street address of the delivery location; (iv) the time and date of the purchase and delivery; and (v) the signature or other verification of the identity of the person who accepts the delivery.
The Department of Tax regulation allows the County to adopt ordinances otherwise permitted by law. The CCBL confirmed that the Board could restrict deliveries in the H-1 Zoning District, which is the resort hotel corridor containing the “Strip.” The Board also recommended that the CCBL work with the Clark County Traffic Management to draft the regulations and to consider the regulation of deliveries of marijuana.
If your business is affected by this proposed amendment, please contact Saltzman Mugan Dushoff, PLLC.
