Frequently Asked Questions
The following is intended to provide general information concerning a frequently asked question about matters administered by the Nebraska Liquor Control Commission (NLCC). It is an informal interpretation of the applicable laws and regulations and is not intended to serve as a rule, regulation, declaratory order, or advisory opinion. Legislative changes, administrative rules, court decisions, or official Commission notices may affect the accuracy of this information. For the most current version of the law and administrative procedures, please refer to the Nebraska Revised Statutes and the Nebraska Administrative Code.
Quick Navigation
- Advertising and Coupons FAQs
- Brand Registration FAQs
- Craft Brewery FAQs
- Cocktails To Go FAQs
- Damaged Product Returns FAQs
- Delinquent Credit FAQs
- Enforcement FAQs
- Forklifts FAQs
- Gambling FAQs
- General FAQs
- Invoice Requirements
- Microdistillery FAQs
- Multiple Drinks FAQ
- Palcahol FAQ
- Returns to Wholesalers and Manufacturers FAQs
- Samplings and Tastings FAQ
- Special Designated License FAQs
- Sponsorship FAQs
- Wholesaler Shipping FAQs
Advertising and Coupons FAQs
Retail licensees may run advertisements in newspapers, circulars, coupon packages, or online that regularly promote business to potential customers and may advertise pricing.
Advertisements shall not contain:
- False or misleading information
- Any information that could be construed as misleading or deceptive
- Anything that may be lewd or obscene
- Any portrayal of or reference to children or minors.
- Any mention of or inference to another licensed retailer.
Coupons are only permitted if they are managed by the licensed retailer in-house. These coupons may be made available by distribution on the licensed premise, by printing in news media, general resident mailing service, email, or social media. “Manufacturer’s Coupons” are not permitted in the state of Nebraska for redemption at the retailer.
Retailers may also distribute gift certificates provided the certificates are redeemed in full at the time the consumer presents it to the retailer. No credit can be carried after the initial redemption of the certificate.
Manufacturer’s rebates are permitted if they are direct to the consumer by the manufacturer or clearing house and are not utilized at point-of-sale at the retailer’s location.
Brand Registration FAQs
General Questions
No, the Nebraska Liquor Control Commission is only collecting overarching product names. IE Bob’s Lager, Bob’s Ale. Not Bob’s Lager – 10 Ounce, Bob’s Lager – 16 Ounce, Bob’s Lager – Keg
Yes, all manufacturers, Nebraska craft breweries, microdistilleries, and farm wineries must register their brands.
The fee is currently set at $20 for the lifetime of the brand.
NLCC requires that brands be affirmed to be in use once a year, there is currently no fee.
In any instance where the TTB (Tax and Trade Bureau) or FDA (Food and Drug Administration) would require the issuance of a new label approval a new brand registration application would need to be submitted to the Nebraska Liquor Control Commission.
No, only holders of a shipping license, Nebraska craft breweries, microdistilleries, farm wineries, and manufacturers need to register brands. Retailers can utilize the brand registration to learn which wholesalers may carry brands that they would wish to purchase or to find out what is available in the State of Nebraska for sale.
- Yes, a wholesaler does need to be selected during the brand registration process if applicable.
- Holders of a Direct To Consumer Shipping License (S1), Nebraska craft brewery, microdistillery, or farm winery license may select themselves as the wholesaler for the purposes of sales to consumers or sales to retailers if they do not have a wholesaler.
The only products that Nebraska collects ABV info on is for the purpose of classification, as Hard Ciders of 8.5% ABV and below are classified as beer, and spirit based ready-to-drink (RTD) cocktails of 12.5% and below are classified as RTD Cocktails for taxation purposes.
Yes
Sole source could be removed, however there needs to be language designating you as the primary source:
- (b) If the licensed manufacturer, licensed wholesaler, or holder of a shipping license is not the product manufacturer, such licensee shall also include with such form a separate letter from the product manufacturer designating such licensee as the primary source of supply in the United States or the sole source of supply in Nebraska. A separate letter is required for each primary source.
Authorized Agent” is a permitted phrasing in primary source letters.
No, all approvals must be granted by staff.
The name of the product, not the name of the Company. Field 7 is more correct.
Class is based on Nebraska Classifications
- Beer
- Hard Cider below 8.5% ABV
- Spirit based RTD Cocktails below 12.5% ABV
- Wine
- Spirits
- The software does not support bulk uploads for registration.
- Multiple products can be registered through one application for one payment.
- Brands must be approved prior to shipment into the State of Nebraska.
- Brands manufactured by Nebraska Craft Breweries, Microdistilleries, and Farm Wineries may be offered for sale only in the taproom prior to approval, but an application must be submitted.
Beer Registration
- Yes, however approval is not needed prior to sale, only when product is to enter distribution or to be sold to a retailer does it need prior approval.
- Low-volume experimental beers can be registered as an experimental tap and other beer styles can be under that experimental tap until you do a larger batch. These are for strictly limited run beers that do not encapsulate large sales volumes for your location and are limited in sales, release, and time on tap.
The Nebraska Liquor Control Commission follows TTB guidance and the statement by the TTB formula office determines whether an alcoholic kombucha is wine or beer.
Yes. Nebraska Revised Statute 53-160.02 regulates the manufacture, distribution, sale, and purchase of near beer in the same manner as regular beer for all things excluding taxation. Near beer is defined as beer containing less than .5% ABV.
Wine Registration
This letter would be sufficient.
- Only those brands that are not registered under the shipping agent need to be registered with the S1 license.
- All wineries that are operating as a direct shipper under their own separate license who are operating with an Agent need to notify the NLCC that they have brands registered under both themselves and under an agent’s license
NLCC is not recording vintages.
All Hard Cider with an ABV above 8.5% is considered a wine.
Spirit Registration
Proof variances that are permitted by the TTB do not require a new brand registration unless there is a new COLA issued.
Ready to Drink Cocktail Registration
Ready-to-Drink Cocktails are spirit-based alcoholic beverages that are pre-mixed versions of cocktails normally found at bars, they have an alcoholic content of 12.5% abv or less and are generally designed to be more portable and easier to serve than a traditional cocktail.
Craft Brewery FAQs
Invoices to retailers are required to have the following items:
- Retailer Name and Address
- Brewery Name and Address
- All products sold and sizes thereof
- Total gallonage sold to retailer
- Final Price
- Signatures of both delivery driver and receiver at retailer
Invoices are required to be provided with monthly reports for the first three months of the craft brewery conducting self-distribution. Normal record retention will also be required for all invoices.
- All sales to retailers must be paid for upon delivery or by the means laid out in Chapter 6 015 Acceptable Means of Payment in the Rules And Regulations of the Liquor Control Commission.
- No credit shall be extended to retailers for the purchase of beer. (Nebraska Revised Statute 53-168 (1))
- Sales to Retailers will be reported on the “Sales to Nebraska Retailers” section of the monthly excise tax return.
- Invoices must be included for the first three (3) months of self-distribution for a craft brewery.
- After the first three months a spreadsheet may be included in lieu of invoices providing the spreadsheets include the following:
- Name of retailer
- Address of retailer
- Product names
- Product sizes
- Total gallonage sold to retailer
Must be owned or leased by the craft brewery
- Employees must only work for one craft brewery for the purposes of delivery.
- Craft Breweries shall not pool resources for delivery.
Requests for offsite storage must be made to the Commission before offsite storage is granted.
- Requests will be on a form as provided by the Commission.
- There shall be no consumption on the premise of any alcoholic beverages.
- A perpetual inventory must be kept at both the offsite location as well as the primary brewery location of what is stored at the offsite location.
- Product transferred to the offsite storage must be tax paid.
- Offsite product shall be reported under “Month End Inventory” report group on the “Taxable Transfers to Off-Site Storage” line.
- Transfers to Wholesalers, Retailers, or to the Taproom from Off-site storage shall be reported on the respective lines under the Month End Inventory report group.
- All offsite locations must comply with general licensing requirements for location, health, and fire.
All product shall be reported for tax when transferred to the serving tanks.
- Sales to Wholesalers, Retailers, from the serving tanks shall be reported on the respective lines under the Month End Inventory report group.
Cocktails To Go FAQs
- A holder of a class C or a class I license may sell cocktails to go if they notify the NLCC of their intent to do so at either initial licensing or at renewal.
- General restrictions for cocktails to go are as follows:
- The buyer is at least 21 years old
- The drink has not been partially consumed
- The container is labeled with appropriately with the establishment’s name.
- The container is sealed with a tamper-evident lid
- The container is placed in the trunk of a motor vehicle or in the area behind the last upright seat of the vehicle if no trunk is present if it is not normally occupied by a passenger or the driver
- A Class C license holder is not required to sell the cocktails-to-go with food.
- A Class I license holder is required to sell the cocktails-to-go with food because the license does not have the same off-sale rights as those granted by a Class C License.
- The use of a drive thru window is not permitted, as it is impossible to deposit the alcohol into the areas stated above.
Damaged Product Returns FAQs
- Giving credit to a retailer for product that was damaged or destroyed after the sale when in possession of the retailer.
- Exception: When products are delivered in full or partial pallets where at the time of delivery the damaged product was hidden to both parties (Retailer and Wholesaler representatives). Credit may be granted in this instance. There shall be some evidence of the damaged product supported by picture, video, or other reasonable commercial record.
- In the event wholesale representatives, namely merchandisers, in the process of conducting routine product rotation damage or break alcoholic products after initial delivery, the wholesale licensee is not allowed to grant any credit. This is based off the fact that the retailer has allowed this service to be performed by the wholesaler after initial delivery and acceptance of the product.
References: Nebraska Revised Statute 53-168, 53-169, 53-169.01
Delinquent Credit FAQs
All holders of beer wholesale licenses, spirit and wine wholesale licenses, craft breweries, microdistilleries, and farm wineries must comply with this requirement. It is unlawful for credit to be extended for beer, and no credit shall be extended for more than 30 days for wine, spirits, and ready-to-drink cocktails. All of the above licenses must report retail licenses to the Liquor Control Commission when their accounts are delinquent.
1. A complaint by the reporting licensee must be filed with NLCC and be reviewed. Complaints are made through the NLCC POSSE Customer Portal: https://posse-lcc.nebraska.gov/prod/webui/
2. NLCC has created and maintains a list of delinquent retail licensees. This list determines whether a licensee may purchase from all wholesalers (or license types participating in self distribution) and if said license types can sell respectively. It will assist with whether a Temporary Operating Permit will be issued for a pending license application. This list will be located on the NLCC website.
3. The “Cannot Sell To – Current In Debt List” is updated weekdays at 9am and 4pm.
4. Retail licensees may contest their addition to the “Cannot Sell To – Current In Debt List” by providing sufficient proof to the Commission that their outstanding invoices are paid. The reporting wholesaler will provide proof of payment to the commission and the licensee will be removed from the list once payment is made. All documentation, updates, and questions should be supplied to the Enforcement email at lcc.enforcement@nebraska.gov
5. Please be advised that any delinquent licensee will be set for hearing. The licensee reporting the delinquent credit violation is required to testify at the NLCC hearing. This can be done in person or online. The Commissioners may suspend or cancel according to the penalty guidelines.
6. There is no minimum dollar amount for reporting delinquent credit violations.
7. Retail licenses on the “Cannot Sell To – Current In Debt List” are unable to purchase from any license types participating in distribution.
8. It is a violation to sell to a retail license on the list.
Chapter 6, Licensee Operations, 018 Credit: Wholesaler/Retailer
Enforcement FAQs
It is not a violation to give alcohol away. However, there are some issues you should be aware of; you may not give alcohol away to avoid any provision of the Liquor Control Act. You may not give alcohol away to a person who is visibly intoxicated. You may not give away more than one free drink to a person at a time. You may not give away a free drink as part of or as a condition of a purchase of another drink. You may not give away a free drink as part of a cover or entry charge to your business. You may not give alcohol away in any circumstances that would also prohibit you from selling the alcohol.
Yes there are no restrictions on selling alcohol on Election Day in Nebraska law.
There is no NLCC regulation or state statute that prohibits minors from being in a bar at any time, however their may be some local ordinance that sets specific hours and circumstances were minors may be in liquor establishments – check with your city and or county clerk for more information.
There is no NLCC regulation or state statute that prohibits bartenders or other staff members from consuming alcohol while on duty, however their may be a local ordinance – check with your city and or county clerk for more information. However it is not allowed for a staff member to be visibly intoxicated and consuming alcohol while on duty or on the license premise.
There is no NLCC regulation or state statute that prohibits anyone from being inside a business holding a liquor license after legal hours of sale as long as alcohol is not being consumed.
No, there are no exceptions to alcohol being consumed or sold after hours.
The liquor license holder and their employees are responsible for complying with the liquor control act and NLCC regulations even if the business is closed to the public for an event.
Yes as long as there isn’t any gambling for a more detailed explanation of gambling see the Gambling FAQ Link.
At 16 years old, an employee may stock, sack and carry out alcoholic beverages from licensed establishments. This employee must be supervised by a person 21 years of age or older (can be the customer/purchaser)
At 19 years old, an employee may serve, sell and dispense alcoholic beverages. They may also place orders and accept deliveries of alcoholic beverages from a licensed wholesaler at the premise.
Forklifts FAQs
Use of forklifts by wholesale, craft brewery, microdistillery, and farm winery delivery drivers is permitted for the purpose of unloading product from the delivery vehicle. It is prohibited to utilize a forklift in the store to move and place products in the building.
Reference: Nebraska Revised Statutes 53-168, 53-169 and Chapter 6 018 Credit Wholesale/Retail of the Rules and Regulations
Gambling FAQs
The Nebraska State Constitution (Article III, Section 24) is the basis to determine what forms of gambling are permitted or prohibited. Until 1934, ALL forms of gambling were illegal. At that time, the Constitution was amended to permit pari-mutuel horse racing when conducted on a licensed racetrack enclosure. In 1958, the Constitution was amended to permit bingo to be conducted by nonprofit organizations. In 1967, the Constitution was amended to regulate lotteries, raffles, and gift enterprises. Lotteries and raffles may only be conducted by nonprofit organizations. Gift Enterprises may only be conducted by for-profit entities and certain financial institutions. In 2020, the Constitution was amended to allow for casino gambling at licensed racetrack enclosures.
A: The Nebraska Department of Revenue, Charitable Gaming Division (http://www.revenue.nebraska.gov/gaming) may be contacted for information on keno, bingo, pickle cards, lotteries, raffles, gift enterprises, and cash devices.
The Nebraska State Racing and Gaming Commission (http://racingcommission.nebraska.gov) may be contacted for information on horse racing and casinos in Nebraska.
Yes, legal forms of gambling such as pickle cards, keno, cash devices, and the Nebraska Lottery may be permitted at locations that are licensed with the Nebraska Liquor Control Commission.
Wagering or betting on football or other sporting events. Football, baseball, and basketball pools are not legal forms of gambling regardless of the dollar amount wagered. Any games or schemes determined by chance, which require the participant to pay a fee to enter, are not legal.
Video games (cash devices) that are legal in Nebraska are considered mechanical amusement devices which produce an outcome predominantly caused by skill and not by chance. These video games have been submitted to an independent testing laboratory and the results have been reviewed and approved by the Charitable Gaming Division. The video games must have a decal affixed to each device for the current calendar year. The decals are issued by the Charitable Gaming Division. If you have questions or concerns, please contact the Charitable Gaming Division directly at https://revenue.nebraska.gov/about/contact-us.
If any evidence of any illegal gambling is found in a licensed establishment, the owner or manager of the establishment may be cited to appear in county court. If found guilty, the owner or manager may be fined or placed in jail. This may also result in the liquor license being revoked, cancelled or suspended.
If illegal cash devices are operated at a business, the devices may be subject to seizure and additional penalties.
All Nebraska revised statutes can be found on the Nebraska Unicameral Legislature, Laws of Nebraska web site https://www.legislature.ne.gov. Gambling is found in Chapter 28 – Crimes and Punishments, Sections 28-1101 through 1117.
Charitable Gaming Statutes can be found in Chapter 9, Sections 201 through 841 and Chapter 77 – Revenue and Taxation, Sections 3001 through 3011.
General FAQs
NLCC does not regulate the price that can be charged for alcohol. However:
- You may not give alcohol away to avoid any provision of the Liquor Control Act.
- You may not give alcohol away to a person who is visibly intoxicated.
- You may not give away more than one free drink to a person at a time.
- You may not give away a free drink as part of or as a condition of a purchase of another drink.
- You may not give away a free drink as part of a cover or entry charge to your business.
- You may not give alcohol away in any circumstances that would also prohibit you from selling the alcohol.
Nebraska Revised Statute 53-117, Chapter 6 019.01N, Chapter 6019.01U of the Rules and Regulations
Yes, the Liquor Control Act does not bar the sale of alcohol on Election Days.
- The Liquor Control Act does not regulate the entry of minors in a bar.
- Local city or county ordinances may exist that bar the entry of minors into an establishment. Check with your local clerk.
- The Liquor Control Act does not regulate the ability of bartenders or staff to drink on duty, however it is illegal for them to be intoxicated or overserved.
- Check with your local governing body regarding this prohibition as local governments may have ordinances against drinking on the clock.
Chapter 6 019.01N of the Rules and Regulations
- The Liquor Control Act regulates only those hours in which alcohol can be served and sold. Individuals may be in an establishment after those hours so long as there is no alcohol open or present outside of storage areas.
Nebraska Revised Statute 53-179
- No, there are no exceptions to alcohol being consumed or sold after hours.
Nebraska Revised Statute 53-179
- The liquor license holder and their employees are responsible for complying with the liquor control act and NLCC regulations even if the business is closed to the public for an event.
Nebraska Revised Statute 53-117, 53-1,101, 53-1,102
Yes, as long as there is no gambling for a more detailed explanation of gambling see the full gambling FAQ.
- An employee may stock or clean up alcoholic containers, carry alcoholic liquor from an establishment to a vehicle, and complete a transaction, such as at a restaurant with separate servers and tellers, at the age of 16. They shall not check IDs or serve any alcohol.
- An employee can serve and sell alcohol at the age of 19.
Nebraska Revised Statute 53-186.06
Invoice Requirements
Sales invoice requirements for wholesalers, farm wineries, microdistilleries, and craft breweries:
- Description of Product indicating the kinds of alcoholic beverages sold,
delivered or shipped;
- Prices, charges, and applicable taxes if any;
- Case/Bottle Size;
- Quantity;
- Total Gallons with Product Type Classification;
- Means of payment indicator;
- Date of Sale/Date of Delivery (if different);
- Delinquent Date, if credit sale;
- Normal Business lnformation such as names & addresses of all persons to and from such sales, purchases, deliveries or shipments are made.
The Sales lnvoice requirements are applicable for all invoices subject to the Nebraska Liquor Control Act.
Upon delivery of product to a retail licensee all retail licensees are required to sign both copies of the invoice, both the copy retained by the wholesaler and the copy retained by the retailer. Simple initials or only first names are not acceptable signatures.
Statutory Reference: Nebraska Revised Statute 53-165, 53-175, 53-176
Relevant Rules: Chapter 7 of the Rules and Regulations.
Microdistillery FAQs
A Microdistillery may self-distribute up to 3500 gallons of spirits produced at their location
- No credit exceeding 30 days shall be extended to retailers for the purchase of spirits. (Nebraska Revised Statute 53-168 (1))
- Retailers who fail to pay invoices within 30 days may be reported to the Commission by reporting delinquent credit VIA the POSSE Customer Portal
- Sales to Retailers will be reported on the “Spirit Sales to Nebraska Retailers” section of the monthly excise tax return.
- Invoices must be included for the first three (3) months of self-distribution for a microdistillery.
- After the first three months a spreadsheet may be included in lieu of invoices providing the spreadsheets include the following:
- Name of retailer
- Address of retailer
- Product names
- Product sizes
- Total gallonage sold to retailer
Employees must only work for one microdistillery for the purposes of delivery.
Yes. Microdistilleries may request two different types of off-site storage, a tax-paid finished product warehouse and a rickhouse whose purpose is for the barrel-aging of spirits.
Requests for offsite storage must be made to the Commission before offsite storage is granted.
- Requests shall be made through the POSSE Customer Portal utilizing the “Request for Off-site Storage” amendment
- There shall be no consumption on the premise of any alcoholic beverages.
- A perpetual inventory must be kept at both the offsite location as well as the primary distillery location of what is stored at the offsite location.
- Product transferred to the offsite storage must be tax paid.
- Offsite product will be reported under “Internal Sales” as “Transfer to Offsite Storage”
- Any product sold to Nebraska Wholesalers, Nebraska Retailers, or Out of State from the offsite storage shall be reported as follows:
- On “Internal Sales” the product will be reported as “Sales to Nebraska Wholesaler,” “Sale to Nebraska Retailer,” or “Sale out of State” as a negative number reflecting the gallonage being sold to the respective area removed from the offsite storage.
- For Sales to Nebraska Wholesalers the product will be reported as normal on the “Sales to Nebraska Wholesalers” form.
- For Sales to Nebraska Retailers sales will be reported as outlined above.
- For Sales to Out of State sales will be reported as normal as “Shipments Out-of-State” with the normal record requirements.
- Offsite storage cannot be used for the barrel aging of spirits as all transfers to offsite storage must be tax-paid.
- A rickhouse may be applied for using the same methods above, but with the following requirements:
- Federal DSP must be amended to include non-contiguous areas
- DSP must be the same as the rickhouse area.
- Shall be a bonded area for which only the aging of spirits shall occur.
- All offsite locations must comply with general licensing requirements for location, health, and fire.
Multiple Drinks FAQs
Per Chapter 6 019.01U Drinking Promotions it is unlawful for any licensee to sell or serve for on-premise consumption an unlimited quantity of beer, wine, spirits, or RTS at a specific price or to sell two or more drinks for one price. It is also unlawful to list prices such that it appears as multiple drinks for one price, an example being as “Five drinks for $25.”
Pitchers of drinks and buckets of bottles or cans are permitted and are not considered to being one drink, however multiple buckets or pitchers shall not be sold for one price.
Nebraska Revised Statute 53-117
Palcahol FAQs
- Palcohol, or Powdered Alcohol, is unlawful to purchase, sell, offer to sell, use, or possess with intent to sell in the State of Nebraska.
- A licensee who sells, purchases, or possesses with intent to sell shall be subject to suspension, cancellation, or revocation.
- A person not licensed under the Liquor Control Act who sells or possesses a powdered alcohol product shall be guilty of a Class I misdemeanor.
References: Nebraska Revised Statutes 53-103.46, 53-173
Returns to Wholesalers and Manufacturers FAQs
The Nebraska Liquor Control Commission has updated its policies on how to proceed with a return of alcoholic beverages to a Nebraska Wholesaler, Manufacturer, Craft Brewery, Farm Winery, or Microdistillery.
Record requirements for returns are modified to allow for a credit invoice to be utilized as the method for record retention. The invoice must include the following information:
- Description of Product indicating the kinds of alcoholic beverages sold, delivered or shipped
- Prices, charges, and applicable taxes if any
- Case/Bottle Size
- Quantity
- Total Gallons with Product Type Classification
- Means of credit indicator
- Date of Credit/Date of Return (if different)
- Delinquent Date, if credit sale
- Normal Business information such as names & addresses of all persons to and from such sales, purchases, deliveries or shipments are made.
- Both copies of the credit invoice must be signed by both parties in the transaction in order to be accepted by NLCC for a return.
Allowable reasons for return as those outlined in 27 CFR Part 11 Subpart D—Rules for the Return of Distilled Spirits, Wine, and Malt Beverages:
11.31 General.
(a) Section 5(d) of the Act provides, in part, that it is unlawful to sell, offer to sell, or contract to sell products with the privilege of return for any reason, other than those considered to be “ordinary and usual commercial reasons” arising after the product has been sold. Sections 11.32 through 11.39 specify what are considered “ordinary and usual commercial reasons” for the return of products, and outline the conditions and limitations for such returns.
(b) An industry member is under no obligation to accept the return of products for the reasons listed in §§ 11.32 through 11.39.
Exchanges and Returns for Ordinary and Usual Commercial Reasons
11.32 Defective products.
Products which are unmarketable because of product deterioration, leaking containers, damaged labels or missing or mutilated tamper evident closures may be exchanged for an equal quantity of identical products or may be returned for cash or credit against outstanding indebtedness. [T.D. ATF-364, 60 FR 20427, Apr. 26, 1995]
11.33 Error in products delivered.
Any discrepancy between products ordered and products delivered may be corrected, within a reasonable period after delivery, by exchange of the products delivered for those which were ordered, or by a return for cash or credit against outstanding indebtedness.
11.34 Products which may no longer be lawfully sold.
Products which may no longer be lawfully sold may be returned for cash or credit against outstanding indebtedness. This would include situations where, due to a change in regulation or administrative procedure over which the trade buyer or an affiliate of the trade buyer has no control, a particular size or brand is no longer permitted to be sold. [T.D. ATF-364, 60 FR 20428, Apr. 26, 1995]
11.35 Termination of business.
Products on hand at the time a trade buyer terminates operations may be returned for cash or credit against outstanding indebtedness. This does not include a temporary seasonal shutdown (see § 11.39). [T.D. ATF-364, 60 FR 20428, Apr. 26, 1995]
11.36 Termination of franchise.
When an industry member has sold products for cash or credit to one of its wholesalers and the distributorship arrangement is subsequently terminated, stocks of the product on hand may be returned for cash or credit against outstanding indebtedness.
11.37 Change in product.
A trade buyer's inventory of a product which has been changed in formula, proof, label or container (subject to § 11.46) may be exchanged for equal quantities of the new version of that product.
11.38 Discontinued products.
When a producer or importer discontinues the production or importation of a product, a trade buyer's inventory of that product may be returned for cash or credit against outstanding indebtedness.
11.39 Seasonal dealers.
Industry members may accept the return of products from retail dealers who are only open a portion of the year, if the products are likely to spoil during the off season. These returns will be for cash or for credit against outstanding indebtedness.
Exchanges and Returns for Reasons Not Considered Ordinary and Usual
11.45 Overstocked and slow-moving products.
The return or exchange of a product because it is overstocked or slow-moving does not constitute a return for “ordinary and usual commercial reasons.”
11.46 Seasonal products.
The return or exchange of products for which there is only a limited or seasonal demand, such as holiday decanters and certain distinctive bottles, does not constitute a return for “ordinary and usual commercial reasons.”
NLCC also recommends that all brewers adopt policies and procedures for returns due to freshness dating, as outlined in TTB Ruling 2017-2 Revised - Freshness Dating and Allowable Returns of Malt Beverage Products under the FAA Act.
References: Nebraska Revised Statute 53-168, Chapter 6 018 Credit: Wholesaler/Retailer of the Rules and Regulations, Chapter 7 of the Rules and Regulations, Chapter 13 of the Rules and Regulations
Samplings and Tastings FAQ
Under the Nebraska Liquor Control Act Samplings and Tastings are two different categories of actives that can be undertaken by Wholesalers, Manufacturers, Shipping License Holders, Craft Breweries, Microdistilleries, and Farm Wineries. The most important difference between these two activities is that Samplings are to retail license holders and their employees, whereas Tastings are direct to Consumers.
Samplings
- Samplings may be conducted by licensed Nebraska Wholesalers, Manufacturers, Craft Breweries, Microdistilleries, Farm Wineries or representatives of Shipping License holders who have first obtained a Permit to Solicit from NLCC.
- Samples are limited to 5-1 ounce pours in a 24-hour period per employee of a licensee, or the licensee.
- Samplings can take place at either a the licensed retailer’s premise or at a wholesaler’s premise.
- All samples must be tax-paid.
- No samples can be shipped into Nebraska unless they come to rest at a licensed Nebraska Wholesaler.
- All samples must be in the original packaging
- Samples shall not be left behind at the retail location for later consumption.
Tastings
- Tastings are direct to consumers and shall only take place at a location licensed for on-premise consumption.
- All product used in a tasting that comes from a Wholesaler, Manufacturer, Craft Brewery, Microdistillery, or Farm Winery must be invoiced to the retailer using the invoice guidelines.
- Tastings must be limited in quantity and should not comprise a full drink.
- A Representative of a holder of a Shipping License must obtain a Permit-To-Solicit if they are receiving the product from a wholesaler.
- Representatives may purchase product at the retailer where the tasting is occurring. This normally occurs by third-party tasting vendors who are utilized by grocery stores.
- Tastings are exempt from the Multiple Drinks rule.
References: Nebraska Revised Statute 53-184, 53-103.34, Chapter 6 002, Chapter 6 019.01U of the Rules and Regulations. Chapter 7 of the Rules and Regulations.
Special Designated License (SDL) FAQs
- Alcohol is being served to the public - you MUST have an SDL.
- Open houses/Grand openings
- Publicly advertised events
- Events in public or in an area accessible by the public
- If the alcohol is being sold – you MUST have an SDL.
- Paying for the drink
- Paying for a ticket or entry fee to get into the event
- Auctions where alcohol is in the gift basket/prize
- Donations made to the non-profit organization holding the event
Any advertising on social media, in the newspaper, on TV or posted locally you MUST have an SDL.
- If you are not the holder of license for that location, you MUST have an SDL.
- Whoever is receiving the funds from the sale of the alcohol MUST have an SDL.
Anyplace that is open to the public or accessible to the public, you MUST have an SDL.
- Private events are by invitation only with a strict guest list.
- Nobody not on the list is allowed entry into the event
- Weddings with a plus 1 are not private events.
- Absolutely no money exchanged for alcohol or entry into the event.
- No advertising for the event
- No social media postings of the event
- Nobody not on the list is allowed entry into the event
- 53-186.01 does not specify what open to the public means, so NLCC takes a commonsense approach:
- If there is a guest list prepared in advance and no persons not on the list is allowed entry
- If there is no advertising of the event
- If there are no social media postings of the event
- Then NLCC deems it a private event and would agree no liquor license is required. However, if the list is ignored and public access is granted to the event and there is uncontrolled access to the alcohol then it would not be considered a private event.
- For outdoor events the area where alcohol will be allowed must be enclosed by fencing or natural barriers
- Snow fencing, cattle panels, chain link, and natural barriers such as tree lines, body of water, railroad tracks and buildings are acceptable
- Rope fencing is NOT acceptable
Non-Profit Organizations
- If you are receiving funds from the sale of alcohol you MUST have an SDL
- That organization then takes responsibility for serving and selling the alcohol as well as monitoring for over consumption and underage drinking.
- Alcohol can only be donated by a Nebraska licensed wholesaler or manufacturer to a nonprofit organization.
- You will need to request an exemption to receive donated product
- Monetary donations may be accepted to purchase product in lieu of accepting donated product
- If alcohol is included in the winnings of an auction that is considered selling alcohol, and you MUST have an SDL.
Homebrewing
This is allowed per §53-168.06 provided it is not sold or offered for sale.
Yes per §53-168.06
Federal regulation 25.205 indicates 200 gallons per calendar year if there are two or more adults residing in the household, or 100 gallons per calendar year if there is only one adult residing in the household. Any adult is any individual who is 21 years of age or older. All rules and statutes apply for over service, serving to minors, etc.
No per §53-168.06. You must be licensed in order to receive profits from the sale of alcohol. (§53-1,100)
No, this is considered soliciting monetary compensation and is considered selling product.
The home brewer is responsible for all signs.
No, home brewers are just that, home brewers. They can be recognized as belonging to a home brewers club, but must be labeled as a home brewer.
Yes! If all home brewers have the same signs with the same info and it has been approved by the NLCC, this is ok and encouraged.
Yes, the location of where the beer was made needs to be available upon request. Upon request the NLCC must be able to see documentation. Keep information on file. It does not have to be on hand at the event.
No, homedistilling is illegal in Nebraska per Nebraska Revised Statute 53-1,100
Homebrewing Competitions
Yes, locations holding an event should have contact information of the home brewers.
Yes and maybe. Nebraska law allows the transport into Nebraska homebrew from outside the state for competitions. If you wish to transport homebrew into another state, you need to contact the state liquor authority in that state to make sure you are in compliance. Please remember to abide by the federal production limits as well.
There can be prizes for competitions. Accepting/Receiving a prize for a competition would not be considered selling your home brewed product.
General Homebrew Questions
No, home brewed beer is not for sale and therefore not subject to excise tax in Nebraska.
Yes, all home brewers, in state and out of state must follow the statutes and guidelines while in Nebraska.
This is recommended as a standardization for home brewers.
As long as the craft brewery has approved and home brew product is kept separate from the product at the licensed premise and out of the brewery’s production area.
Yes, do not bring home brewed product into the production area. Home brewed product should be kept in the public areas outlined at the brewery.
Yes, if you think they are underage or are visibly intoxicated, do not serve them. Check ID’s and event bands. If in doubt, do not serve.
This is a great idea! While not required, it is recommended for public knowledge.
Yes, as long as the individual home brewer is not selling beer or receiving profits in any way. However, homebrew is not permitted to be sold, so fundraising cannot be through the sale of the homebrew.
Home brewers are limited by Federal regulation to 100 gallons per calendar year in a single adult household, or 200 gallons per year if there is more than one adult in the household.
Special Designated License Farm Winery (Class Y) Applicant Information
- If the event is not a “tasting” as defined by the rules and regulations Chapter 6-002.02 listed above.
- If there is no underlying retail license or Special Designated License at the location of the tasting, you would need to apply for a Special Designated License.
- Anytime there would be an exchange of money. (Receiving profits of the event, taking orders, or selling of product)
If the event coordinating is receiving portions of the profit from sales of alcohol they also must have a SDL. Neb. Rev. Stat. §53-103.33
No. There should be an invoice created for the event. The licensed grocery store/retail staff would need to do the pouring. You as a Farm Winery may be present to promote and educate the public about the product only as an agent for the retailer.
If you would be receiving any profit of this event by selling product, taking orders, or taking any proceeds of the event, a license would be required.
If this is a “tasting” defined by the rules and regulations with no profits, selling of product, no orders placed and is at a location that has a license for the event, a license may not be required.
If the event coordinating is receiving portions of the profit from sales of alcohol they also must have a SDL. Neb. Rev. Stat. §53-103.33
Yes. The rule below must strictly be followed.
Chapter 6-019.01P No retail licensee may deliver alcoholic liquor to a consumer, except:
019.01P1 A holder of a special designated license or a caterer’s license used in conjunction with a special designated license may deliver to the licensed location or to a location expressly authorized by the Commission in writing pursuant to Chapter 4 of the Rules and Regulations of the Commission.
019.01P2 A retail licensee or a holder of a shipping license may deliver or cause to be delivered by its agent, delivery service or common carrier to a consumer alcoholic beverages provided that the consumer has paid the licensee for the alcoholic liquors prior to delivery by cash, credit or debit card, and that the licensee has verified that the sale has not been made to a minor, nor that delivery will be made to a minor. Any package to be delivered by a delivery service or common carrier for the holder of a shipping license shall have a label stating “adult signature required” measuring at least three by five inches in size placed on the package by the licensee.
All SDL holders may be liable for violations involving alcohol.
Manufacturers, Nebraska craft brewers, Nebraska farm wineries, Nebraska micro distilleries and beer distributors shall not donate product directly to a retailer or SDL holder unless the SDL is specifically in the name of a non-profit organization per §53-124.11.
Instead, donations by manufacturers, Nebraska craft brewers, Nebraska farm wineries, Nebraska micro distilleries, and beer distributors shall be in monetary form and contributed directly to the non-licensee entity seeking contribution
Special Designated License Craft Brewery (Class L) Applicant Information
- If the event is not a “tasting” as defined by the rules and regulations Chapter 6-002.02 listed above.
- If there is no underlying retail license or Special Designated License at the location of the tasting, you would need to apply for a Special Designated License.
- Anytime there would be an exchange of money. (Receiving profits of the event, taking orders, or selling of product) If the event coordinating is receiving portions of the profit from sales of alcohol they also must have a SDL. Neb. Rev. Stat. §53-103.33
No, although all beer released from the brewery must be invoiced. The licensed grocery store/retail staff would need to do the pouring. You as a Brewery may be present to promote and educate the public about the product only as an agent for the retailer.
All SDL holders may be liable for violations involving alcohol.
Manufacturers, Nebraska craft brewers, Nebraska farm wineries, Nebraska micro distilleries and beer distributors shall not donate product directly to a retailer or SDL holder unless the SDL is specifically in the name of a non-profit organization per §53-124.11.
Instead, donations by manufacturers, Nebraska craft brewers, Nebraska farm wineries, Nebraska micro distilleries, and beer distributors shall be in monetary form and contributed directly to the non-licensee entity seeking contribution.
Class C License holders with Growler endorsements (Limited Bottling Endorsement) are not eligible to include Growlers/Crowlers when applying for SDL’s. Reference of 53-134.01 (1)
Class L License holders applying for SDL’s are eligible to include Growlers/Crowlers. Reference 53-123.14 & 53-172 Original packages
All product released from a brewery must be invoiced. Invoice must indicate quantity being released. All product being sold or provided to a retail licensee (includes SDL licenses) must go through a Nebraska wholesaler. The only exception would be if there is an exemption of Nebraska Statute 53-175 on the SDL or if the brewery was performing a tasting as defined by the rules and regulations of NLCC Chapter 6-002.02.
Sponsorships FAQs
1. It is illegal for a supplier or distributor to enter into a sponsorship agreement involving a payment to a license retailer either directly or through an intermediary. This is considered to be providing something of value in violation of the tied-house law.
2. Nebraska law does not prohibit a supplier or distributor from entering into a sponsorship agreement with a nonprofit entity if it does not hold a retail license. Nor does it prohibit a supplier or distributor from making a financial contribution to a nonprofit entity. In that case, the nonprofit could display signage of the supplier or distributor or otherwise publicly recognize the contribution. Nebraska law would prohibit a supplier or distributor from donating product to a nonprofit entity which does not hold a retail license because a supplier may only sell to a licensed distributor and a distributor may only sell to a licensed retailer. However, the supplier or distributor could make a financial contribution to the nonprofit entity and the nonprofit entity could purchase product from a licensed retailer.
3. If a nonprofit entity receives a Special Designated License (SDL) from the Commission, a supplier or distributor may contribute either money or product to the nonprofit entity under 53-165.03. Additionally, under current Nebraska law, the NLCC has statutory authority to waive compliance with specified provisions of the Nebraska law (including tied-house provisions) when issuing SDL’s.
A specific request would need to be made and examined or approved by the Commission
References: Nebraska Revised Statutes, 53-124.11; 53-165.03; 53-168; 53-169; 53-169.01; 53-1,101; 53-1,102
Wholesaler Shipping FAQ
Yes, a wholesaler located outside the State of Nebraska can apply for and be issued a shipping license to ship to a wholesaler located in the State of Nebraska.
Nebraska Revised Statute 53-123.15