LB150                                                                                LB150
2023                                                                                  2023
                              LEGISLATURE OF NEBRASKA
                          ONE HUNDRED EIGHTH LEGISLATURE
                                     FIRST SESSION
                         LEGISLATIVE BILL 150
        Introduced by Dover, 19.
        Read first time January 09, 2023
        Committee: General Affairs
 1      A BILL FOR AN ACT relating to the Nebraska Liquor Control Act; to amend
 2          section 53-123.17, Reissue Revised Statutes of Nebraska; to change
  3         provisions related to   entertainment districts;   to repeal the
  4         original section; and to declare an emergency.
  5     Be it enacted by the people of the State of Nebraska,
                                            -1-
LB150                                                                                               LB150
2023                                                                                                 2023
 1            Section 1. Section 53-123.17, Reissue Revised Statutes of Nebraska,
 2      is amended to read:
 3            53-123.17 (1) A local governing body may designate an entertainment
 4      district in which a commons area may be used by retail, craft brewery,
 5      and microdistillery licensees and holders of a manufacturer's license
 6      which obtain an entertainment district license. The local governing body
 7      may, at any time, revoke such designation if it finds that the commons
 8      area threatens the health, safety, or welfare of the public or has become
 9      a common nuisance. The local governing body shall file the designation or
10      the revocation of the designation with the commission.
11            (2) An entertainment district license allows the sale of alcoholic
12      liquor for consumption on the premises within the confines of a commons
13      area. The consumption of alcoholic liquor in the commons area shall only
14      occur during the hours authorized for sale of   alcoholic liquor for
15      consumption on the premises under section 53-179 and while food service
16      is available in    the commons area or    by at    least one holder of    an
17      entertainment district license.    Only the holder of    an entertainment
18      district license or employees of such licensee may sell or dispense
19      alcoholic liquor in the commons area.
20            (3) An entertainment district licensee shall serve alcoholic liquor
21      to be consumed in the commons area in containers that prominently display
22      displays the licensee's trade name or logo or some other mark that is
23      unique to the licensee under the licensee's retail license, craft brewery
24      license,   microdistillery license,        or manufacturer's license.      An
25      entertainment district licensee may allow alcohol sold by    another
26      entertainment district licensee to enter the licensed premises of either
27      licensee. No entertainment district licensee shall allow alcoholic liquor
28      to leave the commons area or the premises licensed under its retail
29      license,    craft brewery license,         microdistillery license,        or
30      manufacturer's license.
31            (4) If the licensed premises of the holder of a license to sell
                                                   -2-
LB150                                                                                                    LB150
2023                                                                                                      2023
 1      alcoholic liquor at retail issued under subsection (6) of section 53-124,
 2      a craft brewery license, a microdistillery license, or a manufacturer's
 3      license is    adjacent to    a commons area in   an entertainment district
 4      designated by a local governing body pursuant to this section, the holder
 5      of the license may obtain an annual entertainment district license as
 6      prescribed in this section. The entertainment district license shall be
 7      issued for the same period and may be renewed in the same manner as the
 8      retail license,      craft brewery license,         microdistillery license,      or
 9      manufacturer's license.
10           (5) In order to obtain an entertainment district license, a person
11      eligible under subsection (4) of this section shall:
12           (a) File an application with the commission upon such forms as the
13      commission prescribes; and
14           (b) Pay an additional license fee of three hundred dollars for the
15      privilege of serving alcohol in the entertainment district payable to the
16      clerk of the local governing body in the same manner as license fees
17      under subdivision (4) of section 53-134.
18           (6) When an application for an entertainment district license is
19      filed, the commission shall notify the clerk of the local governing body.
20      The commission shall include with such notice one copy of the application
21      by mail or    electronic delivery.       The local governing body and the
22      commission shall process the application in the same manner as provided
23      in section 53-132.
24           (7) The local governing body may impose an occupation tax on the
25      business of an entertainment district licensee doing business within the
26      liquor license jurisdiction of the local governing body as provided in
27      subdivision (11)(b) of this section in accordance with section 53-132.
28           (8) The local governing body with respect to entertainment district
29      licensees within its liquor license jurisdiction as    provided in
30      subdivision (11)(b) of this section may cancel an entertainment district
31      license for cause for the remainder of    the period for which such
                                                     -3-
LB150                                                                                          LB150
2023                                                                                            2023
 1      entertainment district license is issued. Any person whose entertainment
 2      district license is canceled may appeal to the commission in accordance
 3      with section 53-134.
 4          (9)     A   local governing body may regulate by     ordinance,       not
 5      inconsistent with the Nebraska Liquor Control Act, any area it designates
 6      as an entertainment district.
 7          (10) Violation of any provision of this section or any rules or
 8      regulations adopted and promulgated pursuant to   this section by    an
 9      entertainment district licensee may be   cause to   revoke,      cancel,     or
10      suspend the retail license issued under subsection (6) of section 53-124,
11      craft brewery license, microdistillery license, or manufacturer's license
12      held by such licensee.
13          (11) For purposes of this section:
14          (a) Commons area means an area:
15          (i) For a city of the primary class or a city of the metropolitan
16      class, an area:
17          (A) Within an entertainment district designated by a local governing
18      body;
19          (B) (ii) Shared by authorized licensees with entertainment district
20      licenses;
21          (C) (iii) Abutting the licensed premises of such licensees;
22          (D)     (iv)   Having limited pedestrian accessibility by   use of    a
23      physical barrier, either on a permanent or temporary basis; and
24          (E) (v) Closed to vehicular traffic when used as a commons area;
25      and .
26          (ii) For a city of the first class, a city of the second class, a
27      county, or a village, an area:
28          (A) Within an entertainment district designated by a local governing
29      body;
30          (B)     Shared by   authorized licensees with entertainment district
31      licenses;
                                                 -4-
LB150                                                                               LB150
2023                                                                                 2023
 1          (C) Abutting the licensed premises of such licensees; and
  2         (D) With reasonable safety measures in place to protect pedestrians,
  3     including signage, lighting, and reduced motor vehicle speeds when motor
  4     vehicles will be   in close proximity to   pedestrians,   and with   a
  5     prohibition on the carrying of open alcoholic liquor containers and the
 6      consumption of alcoholic liquor on any open street or highway except when
 7      necessary to cross the same at a designated crosswalk.
 8          Commons area may include any area of a public or private right-of-
 9      way if the area otherwise meets the requirements of this section; and
10          (b) Local governing body means the governing body of the city or
11      village in which the entertainment district licensee is located.
 12         Sec. 2.       Original section 53-123.17, Reissue Revised Statutes of
 13     Nebraska, is repealed.
 14         Sec. 3.       Since an emergency exists, this act takes effect when
 15     passed and approved according to law.
                                             -5-
Statutes affected: Introduced: 53-123.17