Session Review: General Affairs

Changes to the Nebraska Liquor Control Act were the focus of the General Affairs Committee this session.

LB861, introduced by Wilber Sen. Russ Karpisek on behalf of the committee, makes technical changes to the act and allows a local governing body or county board to extend on-site alcohol sales for on-premises consumption from 1 a.m. to 2 a.m. Approval of a two-thirds majority of a local governing body is required to authorize the change.

LB861 also contains provisions of seven other bills.

LB786, introduced by Karpisek, removes a prohibition on adding liquor to beer or selling beer to which liquor has been added.

LB869, introduced by Karpisek, increases the liquor application fee for retail licenses from $45 to $400.

LB870, also introduced by Karpisek, creates a temporary operator’s permit for new owners of a business with a liquor license.

LB883, introduced by Lincoln Sen. Colby Coash, allows farm wineries to store products at an offsite facility. Under the bill, farm wineries must notify the Liquor Control Commission of the warehouse location and alcohol consumption is prohibited at the offsite location. The bill also makes state law consistent with federal law regarding reporting and tax payment schedules for farm wineries.

LB906, introduced by Karpisek, provides an exception to the prohibition on granting liquor licenses to establishments located within 150 feet of a church. Under the bill, the commission may grant such a license only after providing notice to an affected church and holding a hearing.

LB1000, introduced by Karpisek, requires that any officer or director of a limited liability company (LLC), or any member with an ownership interest of more than 25 percent, meet the qualifications for a liquor license. The bill also requires that an LLC manager be a citizen and a resident of Nebraska.

Finally, LB1012, introduced by Sen. Kent Rogert of Tekamah, increases the membership of the State Racing Commission from three to five members.

The bill also removes prohibitions on commission members:

• having an interest in a horse that is racing under the commission’s jurisdiction;
• placing wagers on the outcome of any race under the commission’s jurisdiction or supervision; or
• having a financial interest in or engaging in any private employment with any business that is regulated by or conflicts with the commission’s duties, or that does business with any racing association licensed by the commission.

The bill requires commission members to file a conflict of interest statement if a conflict exists.

LB861 passed on a 40-5 vote.

Lawmakers also overrode a gubernatorial veto of a bill that increases the state’s alcohol shipping fee.

Under LB867, sponsored by Karpisek, the cost of obtaining an annual shipping license from the Nebraska Liquor Control Commission increased from $200 to $1,000. The fee is collected from out-of-state wine, spirit and beer shippers.

Lawmakers passed the bill on a 46-1 vote. Gov. Dave Heineman subsequently vetoed the measure, saying it is unreasonable to increase the fee by 500 percent during difficult economic times and that doing so will create an undue burden on small businesses that ship alcohol into Nebraska.

Karpisek said the increase is fair because the fee has not been raised since 1981, adding that the increase is expected to bring nearly $500,000 per year into the state’s general fund.

Senators voted 38-9 to override the governor’s veto.

A measure that would have allowed horse racetracks in Nebraska to establish satellite wagering facilities with local community approval failed to advance from general file this session.

LR277CA, sponsored by Karpisek, would have placed on the November 2010 general election ballot a proposed amendment to the Nebraska Constitution allowing satellite wagering facilities if approved by the appropriate county, city or village.

The measure failed to advance to select file on a 22-11 vote.