Microdistillery, craft brewery expansion bill approved

Nebraska microdistilleries and craft breweries will have greater flexibility to grow their businesses under a bill given final approval April 10.

LB113, introduced by Grand Island Sen. Dan Quick, increases the amount of alcohol that a holder of a microdistillery license can self-distribute to retail licensees in Nebraska from 500 gallons to 3,500 gallons.

The bill also increases the number of licensed premises and retail locations a craft brewery or microdistillery licensee is permitted to operate from five to eight physical locations.

LB113 contains a stipulation that if any section or part of a section of the measure is declared invalid or unconstitutional, the ruling will not affect the validity or constitutionality of the remaining portions.

The measure also includes provisions of LB186, sponsored by Norfolk Sen. Robert Dover, which make a number of changes to existing law regarding entertainment district licenses.

Those provisions stipulate that alcohol consumption in an entertainment district commons area may occur only during the hours authorized for on-premise alcohol sales and while food service is available in the commons area or from at least one holder of an entertainment district license.

The provisions also create a new, separate definition of commons area for licensees in villages, first and second class cities and unincorporated portions of a county. The definition of commons area for primary and metropolitan class cities remains unchanged.

The new definition for smaller communities does not require that an area be completely closed to vehicular traffic when used as a commons area and allows carrying of open alcohol while crossing a street or highway at a designated crosswalk.

LB113 passed on a vote of 33-13.