Session Review: General Affairs

Lawmakers considered several changes to the state’s liquor laws and gaming regulations this session.

Senators approved a bill authorizing the designation of common areas where alcohol may be consumed.

LB1130, introduced by Lincoln Sen. Colby Coash, authorized the creation of entertainment districts and a licensing process for those districts.

Under the bill, an entertainment district may be designated and regulated by a local governing body via city ordinance and may be revoked if found to be a nuisance or a threat to public health, safety or welfare. Entertainment district designations will be filed with the state Liquor Control Commission (LCC).

A local governing body may designate a commons area within the district that:
• is shared by entertainment district authorized licensees;
• abuts the licensed premises of the licensees;
• is closed to vehicular traffic when used as a common area; and
• has limited pedestrian accessibility by use of a physical barrier on a permanent or temporary basis.

To operate in the commons areas, a business will be required to:
• file an application with the LCC and pay a $300 fee;
• be located adjacent to a commons area within an entertainment district;
• have a retail liquor license, craft brewery license or microdistillery license; and
• only serve alcoholic liquor in a container that displays the business’ logo or trade name.

LB1130 passed on a 44-1 vote.

With passage of LB824, introduced by Wilber Sen. Russ Karpisek, flavored malt beverages will be taxed in Nebraska at the same rate as beer rather than the higher hard liquor rate.

The bill places restrictions on the amount of alcohol in a flavored malt beverage that can be derived from flavorings or distilled alcohol and includes a provision that changes the trigger date for payment of state excise tax to align with the federal trigger date. State excise tax will be levied when the product is shipped from its bonded location.

Senators passed the measure on a 37-6 vote.

Lawmakers also passed a bill that removes a prohibition on selling and dispensing alcoholic liquor in Nebraska on Sundays between 6 a.m. and noon.

Under LB861, introduced by Bellevue Sen. Abbie Cornett, alcohol sales during Sunday morning hours still could be restricted by local ordinances.

The bill passed on a 44-0 vote.

Senators gave unanimous consent to bracket a bill that would have prohibited minors assisting with alcohol compliance checks from lying about their age or consuming alcohol.

Under LB60, introduced by Omaha Sen. Bob Krist, law enforcement officers also would have been prohibited from consuming alcohol during a compliance check.

Krist said the state Liquor Control Commission had agreed to include training on the proper procedure for conducting compliance checks during an upcoming law enforcement workshop. He said the additional training, combined with assurances from the commission that they would not administratively prosecute cases resulting from improper compliance checks, addressed the concerns that led to the bill’s introduction.

LB60 was bracketed until April 1, 2012.

Among the proposed changes to Nebraska’s gaming regulations considered this session was a bill to update the state’s Pickle Card Lottery Act.

Currently, nonprofit organizations must wait five years from the date of incorporation to qualify for a pickle card license. Volunteer fire companies, as well as volunteer first aid, rescue, ambulance and emergency squads are exempted from the five-year waiting period.

LB979, introduced by Plattsmouth Sen. Paul Lambert, extends the exemption to any nonprofit organization whose primary purpose is to support a volunteer fire company, first aid, rescue, ambulance or emergency squad.

The bill passed 48-0.

A bill that would have amended the five-minute time limit required between keno games failed to advance from general file.

LB1067, sponsored by Karpisek would have allowed a county, city or village conducting a keno lottery to designate a time limit between games of less than five minutes, but not less than three minutes.

The bill failed to advance on a 20-17 vote. Twenty-five votes are needed for advancement.

Finally, the General Affairs Committee heard testimony on a proposed change to the Nebraska Constitution that would have allowed the Legislature to authorize and regulate casino gaming in Nebraska.

LR375CA, introduced by Columbus Sen. Paul Schumacher, would have placed a proposed constitutional amendment on the November 2012 general election ballot that would have allowed the Legislature to authorize and regulate any game of chance, lottery or gift enterprise.

The committee voted to indefinitely postpone the measure.