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--- version:Introduced+++ version:(document, no version)@@ -1,270 +1,77 @@-LEGISLATURE OF NEBRASKA-ONE HUNDRED NINTH LEGISLATURE-FIRST SESSION-LEGISLATIVE BILL 113+ONE HUNDRED NINTH LEGISLATURE - FIRST SESSION - 2025+COMMITTEE STATEMENT (CORRECTED)+LB113-Introduced by Quick, 35.-Read first time January 10, 2025-Committee: General Affairs-A BILL FOR AN ACT relating to the Nebraska Liquor Control Act; to amend1-sections 53-123.01, 53-123.14, 53-123.16, and 53-129, Revised2-Statutes Cumulative Supplement, 2024; to change provisions relating3-to the rights of a manufacturer's, craft brewery, and4-microdistillery license; to harmonize provisions; and to repeal the5-original sections. 6-Be it enacted by the people of the State of Nebraska,7-LB113-2025-LB113-2025--1--Section 1. Section 53-123.01, Revised Statutes Cumulative1-Supplement, 2024, is amended to read: 2-53-123.01 (1) A manufacturer's license shall allow the manufacture,3-storage, and sale of alcoholic liquor to wholesale licensees in this4-state and to such persons outside the state as may be permitted by law,5-except that nothing in the Nebraska Liquor Control Act shall prohibit a6-manufacturer of beer from distributing tax-paid samples of beer at the7-premises of a licensed manufacturer for consumption on the premises. A8-manufacturer's license issued pursuant to this section shall be the only9-license required by the Nebraska Liquor Control Act for the manufacture10-and retail sale of beer manufactured on the licensed premises for11-consumption on the licensed premises. 12-(2)(a) A licensee who or which first obtains a craft brewery license13-pursuant to section 53-123.14, holds such license for not less than three14-years, and operates a brewpub or microbrewery on the licensed premises of15-such craft brewery license shall obtain a manufacturer's license when the16-manufacture of beer on the licensed premises exceeds twenty thousand17-barrels per year. The manufacturer's license shall authorize the18-continued retail sale of beer for consumption on or off the premises but19-only to the extent the premises were previously licensed as a craft20-brewery. The sale of any beer other than beer manufactured by the21-licensee, wine, or alcoholic liquor for consumption on the licensed22-premises shall require the appropriate retail license. The holder of such23-manufacturer's license may continue to operate up to ten five retail24-locations which are in operation at the time such manufacturer's license25-is issued and shall divest itself from retail locations in excess of ten26-five locations. The licensee shall not begin operation at any new retail27-location even if the licensee's production is reduced below twenty28-thousand barrels per year. 29-(b) The holder of such manufacturer's license may obtain an annual30-catering license pursuant to section 53-124.12, a special designated31-LB113-2025-LB113-2025--2--license pursuant to section 53-124.11, or an entertainment district1-license pursuant to section 53-123.17. 2-(3) A holder of a manufacturer's license to manufacture spirits may3-operate a rickhouse that meets the requirements for a distilled spirit4-plant pursuant to 26 U.S.C. 5178, as such section existed on January 1,5-2024, if such manufacturer receives authorization from the commission and6-notifies the commission of the location of such rickhouse in a manner7-prescribed by the commission. 8-Sec. 2. Section 53-123.14, Revised Statutes Cumulative Supplement,9-2024, is amended to read: 10-53-123.14 (1) Any person who operates a craft brewery shall obtain a11-license pursuant to the Nebraska Liquor Control Act. A license to operate12-a craft brewery shall permit the production of a maximum of twenty13-thousand barrels of beer per year in the aggregate from all physical14-locations comprising the licensed premises. A craft brewery may also sell15-to beer wholesalers for sale and distribution to licensed retailers. A16-craft brewery license issued pursuant to this section shall be the only17-license required by the Nebraska Liquor Control Act for the manufacture18-and retail sale of beer for consumption on or off the licensed premises,19-except that the sale of any beer other than beer manufactured by the20-craft brewery licensee, wine, or alcoholic liquor by the drink for21-consumption on the licensed premises shall require the appropriate retail22-license. Any license held by the operator of a craft brewery shall be23-subject to the act. A holder of a craft brewery license may obtain an24-annual catering license pursuant to section 53-124.12, a special25-designated license pursuant to section 53-124.11, an entertainment26-district license pursuant to section 53-123.17, or a promotional farmers27-market special designated license pursuant to section 53-124.16. For28-purposes of this section, licensed premises may include up to ten five29-separate physical locations. 30-(2)(a) A holder of a craft brewery license may directly sell for31-LB113-2025-LB113-2025--3--resale up to two hundred fifty barrels per calendar year of beer produced1-at its licensed premises directly to retail licensees located in the2-State of Nebraska which hold the appropriate retail license if the holder3-of the craft brewery license: 4-(i) Only self-distributes its beer in a territory in which the craft5-brewery licensee has not entered into a distribution agreement with a6-licensed Nebraska wholesaler for the territory where such retail licensee7-is located; 8-(ii) Self-distributes its beer utilizing only persons exclusively9-and solely employed by the craft brewery licensee in vehicles exclusively10-and solely owned or leased by the craft brewery licensee; and11-(iii) Complies with all relevant statutes, rules, and regulations12-that apply to Nebraska beer wholesalers regarding distribution of such13-beer. 14-(b) A holder of a craft brewery license self-distributing beer in15-accordance with subdivision (2)(a) of this section may only self-16-distribute beer brewed at its licensed brewery premises and shall not17-distribute beer produced by any other licensee. 18-(3) A holder of a craft brewery license may store and warehouse tax-19-paid products produced on such licensee's licensed premises in a20-designated, secure, offsite storage facility if the holder of the craft21-brewery license receives authorization from the commission and notifies22-the commission of the location of the storage facility and maintains, at23-the craft brewery and at the storage facility, a separate perpetual24-inventory of the product stored at the storage facility. Consumption of25-alcoholic liquor at the storage facility is strictly prohibited.26-(4) The commission may adopt and promulgate rules and regulations27-pertaining to distribution rights of craft brewery licensees.28-Sec. 3. Section 53-123.16, Revised Statutes Cumulative Supplement,29-2024, is amended to read: 30-53-123.16 (1) Any person who operates a microdistillery shall obtain31-LB113-2025-LB113-2025--4--a license pursuant to the Nebraska Liquor Control Act. A license to1-operate a microdistillery shall permit the licensee to produce a maximum2-of one hundred thousand gallons of liquor per year in the aggregate from3-all physical locations comprising the licensed premises. For purposes of4-this section, licensed premises may include up to ten five separate5-physical locations. A microdistillery may also sell to licensed6-wholesalers for sale and distribution to licensed retailers. A7-microdistillery license issued pursuant to this section shall be the only8-license required by the Nebraska Liquor Control Act for the manufacture9-and retail sale of microdistilled product for consumption on or off the10-licensed premises, except that the sale of any beer, wine, or alcoholic11-liquor, other than microdistilled product manufactured by the12-microdistillery licensee, by the drink for consumption on the13-microdistillery premises shall require the appropriate retail license.14-Any license held by the operator of a microdistillery shall be subject to15-the act. A holder of a microdistillery license may obtain an annual16-catering license pursuant to section 53-124.12, a special designated17-license pursuant to section 53-124.11, an entertainment district license18-pursuant to section 53-123.17, or a promotional farmers market special19-designated license pursuant to section 53-124.16. The commission may,20-upon the conditions it determines, grant to any microdistillery licensed21-under this section a special license authorizing the microdistillery to22-purchase and to import, from such persons as are entitled to sell the23-same, wines or spirits to be used solely as ingredients and for the sole24-purpose of blending with and flavoring microdistillery products as a part25-of the microdistillation process. 26-(2) A holder of a microdistillery license may directly sell for27-resale up to five thousand hundred gallons per calendar year of28-microdistilled products produced at its licensed premises directly to29-retail licensees located in the State of Nebraska which hold the30-appropriate retail license if the holder of the microdistillery license:31-LB113-2025-LB113-2025--5--(a) Self-distributes its microdistilled products utilizing only1-persons employed by the microdistillery licensee; and2-(b) Complies with all relevant statutes, rules, and regulations that3-apply to Nebraska wholesalers regarding distribution of microdistilled4-products. 5-(3) A holder of a microdistillery license may store and warehouse6-tax-paid products produced on such licensee's licensed premises in a7-designated, secure, offsite storage facility if the holder of the8-microdistillery license receives authorization from the commission and9-notifies the commission of the location of the storage facility and10-maintains, at the microdistillery and at the storage facility, a separate11-perpetual inventory of the product stored at the storage facility.12-Consumption of alcoholic liquor at the storage facility is strictly13-prohibited. 14-(4) A holder of a microdistillery license may operate a rickhouse15-that meets the requirements for a distilled spirit plant pursuant to 2616-U.S.C. 5178, as such section existed on January 1, 2024, if such licensee17-receives authorization from the commission and notifies the commission of18-the location of such rickhouse in a manner prescribed by the commission.19-(5) The commission may adopt and promulgate rules and regulations20-relating to the distribution rights of microdistillery licensees.21-Sec. 4. Section 53-129, Revised Statutes Cumulative Supplement,22-2024, is amended to read: 23-53-129 (1) Except as otherwise provided in subsection (3) of this24-section, retail, bottle club, craft brewery, and microdistillery licenses25-issued under the Nebraska Liquor Control Act apply only to that part of26-the premises described in the application approved by the commission and27-in the license issued on the application. For retail and bottle club28-licenses, only one location shall be described in each license. For craft29-brewery and microdistillery licenses, up to ten five separate physical30-locations may be described in each license. 31-LB113-2025-LB113-2025--6--(2) After such license has been granted for the particular premises,1-the commission, with the approval of the local governing body and upon2-proper showing, may endorse upon the license permission to add to, delete3-from, or abandon the premises described in such license and, if4-applicable, to move from the premises to other premises approved by the5-local governing body. In order to obtain such approval, the retail,6-bottle club, craft brewery, or microdistillery licensee shall file with7-the local governing body a request in writing and a statement under oath8-which shows that the premises, as added to or deleted from or to which9-such move is to be made, comply in all respects with the requirements of10-the act. No such addition, deletion, or move shall be made by any such11-licensee until the license has been endorsed to that effect in writing by12-the local governing body and by the commission and the licensee furnishes13-proof of payment of the renewal fee prescribed in subsection (4) of14-section 53-131. 15-(3)(a) A retail, bottle club, craft brewery, or microdistillery16-licensee may apply to the local governing body for a temporary expansion17-of its licensed premises to an immediately adjacent area owned or leased18-by the licensee or to an immediately adjacent street, parking lot, or19-alley, not to exceed fifty days for calendar year 2020 and, for each20-calendar year thereafter, not to exceed fifteen days per calendar year.21-The temporary area shall otherwise comply with all requirements of the22-Nebraska Liquor Control Act. 23-(b) The licensee shall file an application with the local governing24-body which shall contain (i) the name of the applicant, (ii) the premises25-for which a temporary expansion is requested, identified by street and26-number if practicable and, if not, by some other appropriate description27-which definitely locates the premises, (iii) the name of the owner or28-lessee of the premises for which the temporary expansion is requested,29-(iv) sufficient evidence that the licensee will carry on the activities30-and business authorized by the license for himself, herself, or itself31-LB113-2025-LB113-2025--7--and not as the agent of any other person, group, organization, or1-corporation, for profit or not for profit, (v) a statement of the type of2-activity to be carried on during the time period for which a temporary3-expansion is requested, and (vi) sufficient evidence that the temporary4-expansion will be supervised by persons or managers who are agents of and5-directly responsible to the licensee. 6-(c) No temporary expansion provided for by this subsection shall be7-granted without the approval of the local governing body. The local8-governing body may establish criteria for approving or denying a9-temporary expansion. The local governing body may designate an agent to10-determine whether a temporary expansion is to be approved or denied. Such11-agent shall follow criteria established by the local governing body in12-making the determination. The determination of the agent shall be13-considered the determination of the local governing body unless otherwise14-provided by the local governing body. 15-(d) For purposes of this section, the local governing body shall be16-that of the city or village within which the premises for which the17-temporary expansion is requested are located or, if such premises are not18-within the corporate limits of a city or village, then the local19-governing body shall be that of the county within which the premises for20-which the temporary expansion is requested are located.21-(e) The decision of the local governing body shall be final. If the22-applicant does not qualify for a temporary expansion, the temporary23-expansion shall be denied by the local governing body.24-(f) The city, village, or county clerk shall deliver confirmation of25-the temporary expansion to the licensee upon receipt of any fee or tax26-imposed by such city, village, or county. 27-Sec. 5. Original sections 53-123.01, 53-123.14, 53-123.16, and28-53-129, Revised Statutes Cumulative Supplement, 2024, are repealed.29-LB113-2025-LB113-2025--8-+Hearing Date: Monday February 03, 2025+Committee On: General Affairs+Introducer: Quick+One Liner: Change provisions relating to licensees under the Nebraska Liquor Control Act++Roll Call Vote - Final Committee Action:+ Advanced to General File with amendment(s)++Vote Results:+ Aye: 8 Senators Andersen, Cavanaugh, J., Clouse, DeKay, Holdcroft, Quick,+Rountree, Storm+ Nay:+ Absent:+ Present Not Voting:++Testimony:+Proponents: Representing:+Senator Dan Quick Opening Presenter+Barry Fox Sideshow Spirits+Cody Schmick Kinkaider and Sideshow Spirits+Scott Strain Kros Strain Brewing and Nebraska Travel+Association+Ryan Hanzlick Long Dogs Distillling+Derek Keller Blended Distilling LLC+Nicholas Ryan Prairie Creek Vineyard+Logan Govier Sideshow Spirits++Opponents: Representing:+Chris Wagner Project Extra Mile+Justin Brady Nebraska Liquor Wholesalers Association+Adam Barney Associated Beverage Distributors of Nebraska+Hobert Rupe Nebraska Liquor Control Commission++Neutral: Representing:+Paul Oettinger Pals Brewing Company++* ADA Accommodation Written Testimony++Summary of purpose and/or changes:+LB 113 increases the amount a microdistillery can self-distribute from five hundred gallons to five thousand gallons.+This bill also increases the number of licensed premises and retail locations a craft brewery is allowed, from five+Committee Statement: LB113+General Affairs Committee+Page 1+b3aadc15cae90babfd9586061be99288+separate physical locations to ten.+SECTION BY SECTION SUMMARY:+Section 1: Amends section 53-123.01, increasing the number of retail locations the holder of a craft brewery license+holder may operate from five to ten.++Section 2: Amends section 53-123.14 by changing the number of licensed premises a craft brewery may operate from+five to ten locations.+Section 3: Amends section 53-123.16 by allowing the operator of a microdistillery and holds the appropriate license to+include up to ten separate physical locations, an increase from the five locations currently allowed in statute.+Subsection two, increases the amount a microdistillery can self-distribute from five hundred gallons to five thousand+gallons.+Section 4: Amends section 53-129 by allowing up to ten separate physical locations to be described in each license+for a craft brewery and a microdistillery license, an increase from the five separate physical locations currently allowed+in statute.+Section 5: This is a repealer section.++Explanation of amendments:+The Committee considered and adopted AM 232, which accomplishes the following:+AM 232 proposes the following changes to LB 113:+* Decreases the proposed increase in the number of retail locations from ten to eight.+* Decreases the proposed increased limit on the number of gallons a micro-distillery can annually self-distribute from+five thousand gallons to three thousand five hundred gallons.++Rick Holdcroft, Chairperson+Committee Statement: LB113+General Affairs Committee+Page 2+b3aadc15cae90babfd9586061be99288
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