Liquor shipping license changes advanced

Senators advanced a bill from general file April 4 that would change provisions for obtaining alcoholic liquor shipping licenses.

Currently the Nebraska Liquor Control Commission may issue any person a license to ship alcoholic liquor directly to a Nebraska consumer.

LB230, introduced by Wilber Sen. Russ Karpisek, would allow only alcoholic liquor manufacturers to obtain a Nebraska direct shipping license. Wine manufacturers who produce less than 250,000 gallons of wine annually would be allowed to ship their products to Nebraska consumers by way of exclusive importers who have a direct sales shipping license.

A General Affairs Committee amendment, adopted 28-2, replaced the bill.

As amended, the bill would allow the commission to issue such licenses only to alcohol manufacturers and licensed retailers. Craft breweries, distilleries and farm wineries would be required to notify any Nebraska wholesaler if they intend to ship products already sold in the state and must not ship products that state manufacturers or wholesalers have agreed not to carry.

The amendment also would require direct shipper license applicants to include the brands of alcoholic liquor they intend to ship and agree to file reports and pay state excise and sales and local political subdivision sales tax on any alcoholic liquor shipped into the state. Applicants also must allow the commission agents to examine their records and notify the commission of license violations in other states. Applicants in violation may have their licenses suspended, cancelled or revoked.

Requiring out-of-state manufacturers and licensed retailers to pay state and local sales tax would allow the state Department of Revenue to collect taxes on and regulate alcohol shipped into the state, Karpisek said.

The amendment also would require licensees to ship only their manufactured brands that are listed on the application and are registered with the federal Alcohol and Tobacco Tax and Trade Bureau and restrict shipments of alcoholic liquor that are not permitted in the state and are in excess of 9 liters per month. The packaging must be labeled and the recipients must sign for the alcoholic liquor and be at least 21 years old. A common carrier that delivers alcohol to a minor would be in violation and held liable.

Karpisek said the bill is intended to strengthen the commission’s ability to regulate alcohol that is shipped into the state and also would prevent minors from receiving alcohol that is ordered from an online manufacturer or retailer.

Gretna Sen. John Murante said he was concerned about the regulations that would be placed on out-of-state retailers and that the commission may not be capable of enforcing such regulations.

The bill advanced from general file on a 27-1 vote.