LB259                                                                                LB259
2023                                                                                  2023
                               LEGISLATURE OF NEBRASKA
                          ONE HUNDRED EIGHTH LEGISLATURE
                                     FIRST SESSION
                       LEGISLATIVE BILL 259
        Introduced by Lowe, 37.
        Read first time January 10, 2023
        Committee: General Affairs
 1      A BILL FOR AN ACT relating to the Nebraska Liquor Control Act; to amend
 2          section 53-123.11, Reissue Revised Statutes of Nebraska; to allow
 3          farm wineries to   obtain additional retail licenses under the
 4          Nebraska Liquor Control Act; and to repeal the original section.
 5      Be it enacted by the people of the State of Nebraska,
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LB259                                                                       LB259
2023                                                                         2023
 1          Section 1. Section 53-123.11, Reissue Revised Statutes of Nebraska,
 2      is amended to read:
 3          53-123.11 (1) A farm winery license shall entitle the holder to:
 4          (a) Sell wines produced at the farm winery onsite at wholesale and
 5      retail and to sell wines produced at the farm winery at off-premises
 6      sites holding the appropriate retail license;
 7          (b) Sell wines produced at the farm winery at retail for consumption
 8      on the premises as designated pursuant to section 53-123.12;
 9          (c) Permit a customer to remove one unsealed bottle of wine for
10      consumption off the premises. The licensee or his or her agent shall (i)
11      securely reseal such bottle and place the bottle in a bag designed so
12      that it is visibly apparent that the resealed bottle of wine has not been
13      opened or tampered with and (ii) provide a dated receipt to the customer
14      and attach to such bag a copy of the dated receipt for the resealed
15      bottle of wine. If the resealed bottle of wine is transported in a motor
16      vehicle, it must be placed in the trunk of the motor vehicle or the area
17      behind the last upright seat of such motor vehicle if the area is not
18      normally occupied by the driver or a passenger and the motor vehicle is
19      not equipped with a trunk;
20          (d) Ship wines produced at the farm winery by common carrier and
21      sold at retail to recipients in and outside the State of Nebraska, if the
22      output of such farm winery for each calendar year as reported to the
23      commission by December 31 of each year does not exceed thirty thousand
24      gallons. In the event such amount exceeds thirty thousand gallons, the
25      farm winery shall be required to use a licensed wholesaler to distribute
26      its wines for the following calendar year, except that this requirement
27      shall not apply to wines produced and sold onsite at the farm winery
28      pursuant to subdivision (1)(a) of this section;
29          (e) Allow sampling and sale of the wine at the farm winery and at
30      four branch outlets in the state in reasonable amounts;
31          (f) Sell wines produced at the farm winery to other Nebraska farm
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LB259                                                                                                   LB259
2023                                                                                                     2023
  1     winery licensees, in bulk, bottled, labeled, or unlabeled, in accordance
  2     with 27 C.F.R. 24.308, 27 C.F.R. 24.309, and 27 C.F.R. 24.314, as such
  3     regulations existed on January 1, 2008;
  4           (g) Purchase distilled spirits from licensed microdistilleries in
  5     Nebraska, in bulk or bottled, made entirely from Nebraska-licensed farm
 6      winery wine to    be used in    the production of    fortified wine at   the
 7      purchasing licensed farm winery;
  8           (h) Store and warehouse products produced at the farm winery in a
  9     designated, secure, offsite storage facility if the holder of the farm
10      winery license notifies the commission of the location of the facility
 11     and maintains,        at the farm winery and at    the facility,    a separate
 12     perpetual inventory of the product stored at the facility. Consumption of
 13     alcoholic liquor at the facility is strictly prohibited; and
14            (i) Sell alcoholic liquor authorized under a farm winery license not
15      in its original package, such as sangria or wine slushies, to a person
16      twenty-one years of age or older for consumption off the premises if (i)
17      the alcoholic liquor is (A) not partially consumed and (B) in a labeled
18      and sealed container with a tamper-evident lid, cap, or seal, as approved
19      by the commission, and (ii) for alcoholic liquor transported in a motor
20      vehicle, the alcoholic liquor is placed in the trunk of the motor vehicle
21      or the area behind the last upright seat of such motor vehicle if the
22      area is not normally occupied by the driver or a passenger and the motor
23      vehicle is not equipped with a trunk. A farm winery which sells alcoholic
24      liquor authorized under a farm winery license not in its original package
25      for consumption off the premises shall provide notice to the commission
26      during a farm winery licensee's initial licensure or at the time of the
27      annual renewal of such license regarding such sales.
28            (2)   No farm winery shall manufacture wine in   excess of    fifty
29      thousand gallons per year.
 30           (3)   A    farm winery may manufacture and sell hard cider on   its
 31     licensed premises. A farm winery shall not otherwise distribute the hard
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LB259                                                                                               LB259
2023                                                                                                 2023
 1      cider it manufactures except by sale to a wholesaler licensed under the
 2      Nebraska Liquor Control Act.
 3          (4)     A    holder of    a farm winery license may sell beer or     other
 4      alcoholic liquor not produced by     the farm winery at   retail for
 5      consumption on the premises if the holder is also issued the appropriate
 6      retail license for such sales at such location.
 7          (5) (4) A holder of a farm winery license may obtain a special
 8      designated license pursuant to section 53-124.11.
 9          (6) (5) A holder of a farm winery license may obtain an annual
10      catering license pursuant to section 53-124.12.
11          (7) (6) A holder of a farm winery license may obtain a promotional
12      farmers market special designated license pursuant to section 53-124.16.
13          Sec. 2.         Original section 53-123.11, Reissue Revised Statutes of
14      Nebraska, is repealed.
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Statutes affected: Introduced: 53-123.11