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LEGISLATURE OF NEBRASKA
ONE HUNDRED NINTH LEGISLATURE
SECOND SESSION
LEGISLATIVE BILL 1115
Introduced by Storer, 43.
Read first time January 16, 2026
Committee: General Affairs
A BILL FOR AN ACT relating to liquor; to amend sections 53-201, 53-202,1
53-213, 53-216, 53-217, 53-218, 53-220, 53-221, 53-222, and 53-223,2
Reissue Revised Statutes of Nebraska; to redefine a term; to exempt3
microbreweries from certain agreement requirements between beer4
suppliers and wholesalers; to harmonize provisions; to provide an5
operative date; and to repeal the original sections.6
Be it enacted by the people of the State of Nebraska,7
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Section 1. Section 53-201, Reissue Revised Statutes of Nebraska, is1
amended to read: 2
53-201 The purpose of sections 53-201 to 53-223 and section 3 of3
this act is to provide fair, efficient, and competitive distribution of4
beer by (1) regulating the termination, expiration, and renewal of5
distribution agreements between beer suppliers and beer wholesalers, (2)6
promoting a distribution system in which each beer wholesaler will devote7
reasonable efforts and resources to sales, distribution, and quality8
control of the beer it sells, (3) promoting the continued availability of9
good quality beer for the consumers of Nebraska through orderly marketing10
and vigorous interbrand competition, (4) preventing a beer supplier from11
unfairly depriving a beer wholesaler of the value of the investment the12
wholesaler made in its business in terms of money, time, effort, and13
skill, and (5) controlling the sale of malt beverages in this state and14
facilitating the lawful and orderly marketing of malt beverages pursuant15
to the police powers of this state. 16
Sec. 2. Section 53-202, Reissue Revised Statutes of Nebraska, is17
amended to read: 18
53-202 For purposes of sections 53-201 to 53-223 and section 3 of19
this act, the definitions found in sections 53-203 to 53-215 shall be20
used. 21
Sec. 3. (1) Sections 53-201 to 53-223 shall not apply to any22
agreement entered into, amended, or renewed on or after the operative23
date of this act between a microbrewery as defined in section 53-103.2124
and a wholesaler. 25
(2) Any agreement between a microbrewery as defined in section26
53-103.21 and a wholesaler that is in existence prior to the operative27
date of this act and that is continuous in nature or that has no specific28
duration or renewal provision shall be deemed terminated on October 1,29
2027, unless the parties enter into a new written agreement prior to such30
date. Such new written agreement shall be subject to subsection (1) of31
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this section. 1
Sec. 4. Section 53-213, Reissue Revised Statutes of Nebraska, is2
amended to read: 3
53-213 Supplier shall mean a manufacturer or importer of beer4
licensed by the State of Nebraska. Supplier does not include a5
microbrewery as defined in section 53-103.21. 6
Sec. 5. Section 53-216, Reissue Revised Statutes of Nebraska, is7
amended to read: 8
53-216 A supplier shall not: 9
(1) Fail to provide each wholesaler of the supplier's brand or10
brands with a written agreement which contains the entire agreement with11
the wholesaler and designates a specific, exclusive sales territory. Any12
agreement which is in existence on April 18, 1989, shall be renewed in a13
manner consistent with sections 53-201 to 53-223 and section 3 of this14
act, and the provisions of such sections may be incorporated by reference15
in the agreement. Nothing in such sections shall prevent a supplier from16
making a one-time appointment, for a period not to exceed ninety days, of17
a wholesaler to temporarily service a sales territory not designated to18
another wholesaler until such time as a wholesaler is appointed by the19
supplier. The wholesaler who is designated to service the sales territory20
during the period of temporary service shall not be in violation of such21
sections and, with respect to the temporary sales territory, shall not22
have any of the rights provided under sections 53-218 and 53-220. The23
temporary service period may be extended beyond ninety days by the24
Nebraska Liquor Control Commission if justifiable circumstances exist as25
determined by the commission; 26
(2) Fix, maintain, establish, or unduly influence the price at which27
a wholesaler shall be required to sell any beer; 28
(3) Enter into an additional agreement with any other wholesaler for29
or to sell to any other wholesaler the same brand or brands of beer in30
the same sales territory or any portion thereof or to sell directly to31
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any retailer in this state; 1
(4) Coerce or attempt to coerce any wholesaler to accept delivery of2
any beer or other commodity which has not been ordered by the wholesaler,3
except that a supplier may impose reasonable inventory requirements upon4
a wholesaler if the requirements are made in good faith and are generally5
applied to other similarly situated Nebraska wholesalers having an6
agreement with the supplier; 7
(5) Coerce or attempt to coerce any wholesaler to accept delivery of8
any beer or other commodity ordered by a wholesaler if the order was9
canceled by the wholesaler in accordance with acceptable procedures;10
(6) Coerce or attempt to coerce any wholesaler to do any illegal act11
or to violate any law, rule, or regulation by threatening to amend,12
modify, cancel, terminate, or refuse to renew any agreement existing13
between the supplier and wholesaler; 14
(7) Require a wholesaler to assent to any condition, stipulation, or15
provision limiting the wholesaler's right to sell the brand or brands of16
beer or other products of any other supplier unless the acquisition of17
the brand or brands or products of another supplier would materially18
impair or adversely affect the wholesaler's quality of service, sales, or19
ability to compete effectively in representing the brand or brands of the20
supplier presently being sold by the wholesaler. The supplier shall have21
the burden of proving that such acquisition of such other brand or brands22
or products would have such effect; 23
(8) Require a wholesaler to purchase one or more brands of beer or24
other products in order for the wholesaler to purchase another brand or25
brands of beer for any reason. A wholesaler that has agreed to distribute26
a brand or brands before April 18, 1989, shall continue to distribute the27
brand or brands in conformance with sections 53-201 to 53-223 and section28
3 of this act; 29
(9) Require a wholesaler to submit audited profit and loss30
statements, audited balance sheets, or audited financial records as a31
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condition of renewal or continuation of an agreement. A supplier may1
require profit and loss statements, balance sheets, or financial records2
which are certified by the wholesaler or an officer thereof;3
(10) Coerce, compel, or require a wholesaler to provide or divulge4
specific information regarding the wholesaler's individual accounts or5
customers or his or her exclusive relationship with them or coerce,6
compel, or require a wholesaler to provide specific information7
concerning competitive brands; 8
(11) Use the threat of losing or withholding its credit as a means9
of compelling a wholesaler to standards of performance in any area of10
business except that area directly relating to credit;11
(12) Withhold delivery of beer ordered by a wholesaler or change a12
wholesaler's quota of a brand or brands if the withholding or change is13
not made in good faith; 14
(13) Require a wholesaler by any means directly to participate in or15
contribute to any local or national advertising fund controlled, directly16
or indirectly, by a supplier; 17
(14) Willfully discriminate, directly or indirectly, in price,18
programs, or terms of sale offered to franchisees if the effect of such19
discrimination may be to substantially lessen competition or to give to20
one holder of a franchise any economic, business, or competitive21
advantage not offered to all holders of the same or similar franchise.22
This subdivision shall not govern dock prices; 23
(15) Take any action against a wholesaler who files a complaint24
regarding an alleged violation by the supplier of a federal, state, or25
local law, rule, or regulation in retaliation for such complaint;26
(16) Restrict or inhibit, directly or indirectly, the right of free27
association among wholesalers for any lawful purpose;28
(17) Require or prohibit, without just cause, any change in the29
manager or successor manager of any wholesaler who has been approved by30
the supplier as of or subsequent to April 18, 1989. If a wholesaler31
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changes an approved manager or successor manager, a supplier shall not1
require or prohibit the change unless the person selected by the2
wholesaler fails to meet the reasonable qualifications for managers of3
Nebraska wholesalers of the supplier, which reasonable qualifications4
previously have been consistently applied to similarly situated Nebraska5
wholesalers by the supplier. The supplier shall have the burden of6
proving that such person fails to meet such reasonable qualifications and7
that the qualifications have been consistently applied to similarly8
situated Nebraska wholesalers; 9
(18) Upon written notice of intent to transfer the wholesaler's10
business, interfere with, prevent, or unreasonably delay for a period of11
sixty days or more the transfer of the wholesaler's business if the12
proposed transferee is a designated member; or 13
(19) Upon written notice of intent to transfer the wholesaler's14
business other than to a designated member, withhold consent to or15
approval of, or unreasonably delay for a period of sixty days or more16
after receipt of all material information reasonably requested of the17
wholesaler a response to a request by the wholesaler for, any transfer of18
a wholesaler's business if the proposed transferee meets the reasonable19
qualifications required by the supplier for similarly situated Nebraska20
wholesalers. The supplier shall have the burden of proving that the21
proposed transferee fails to meet such reasonable qualifications and that22
the qualifications have been consistently applied to similarly situated23
Nebraska wholesalers. 24
Sec. 6. Section 53-217, Reissue Revised Statutes of Nebraska, is25
amended to read: 26
53-217 A wholesaler shall not: 27
(1) Fail to devote such efforts as are required in the agreement28
between the supplier and wholesaler within the supplier's designated29
sales territory relating to the sale and distribution of the supplier's30
brand or brands of beer which the wholesaler has been granted the right31
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to sell or distribute; 1
(2) Sell or deliver beer to a retail licensee located outside the2
sales territory designated to the wholesaler by the supplier of a3
particular brand or brands of beer, except that during a period of4
temporary service interruption impacting a particular sales territory, a5
wholesaler who normally services the impacted sales territory shall file6
with the Nebraska Liquor Control Commission and give to the affected7
supplier written notice designating the specific wholesaler or8
wholesalers, not disapproved by the supplier, who will service the sales9
territory during the period of temporary service interruption and the10
approximate length of time of the service interruption. Each wholesaler11
designated to temporarily service a sales territory shall be a wholesaler12
who has a current agreement with a supplier for the brand or brands13
affected. When the temporary service interruption is over, the wholesaler14
who normally services the sales territory shall notify the commission,15
the supplier, and the wholesaler or wholesalers servicing the sales16
territory on a temporary basis of this fact in writing, and any17
wholesaler servicing the sales territory on a temporary basis shall cease18
servicing the sales territory upon receipt of the notice. A wholesaler19
who is designated to service a sales territory during a period of20
temporary service shall not be in violation of sections 53-201 to 53-22321
and section 3 of this act and, with respect to the sales territory, shall22
not have any of the rights provided under sections 53-218 and 53-220; or23
(3) Transfer his or her business without giving the supplier written24
notice of intent to transfer the business and, when required by sections25
53-201 to 53-223 and section 3 of this act , receiving the supplier's26
approval for the proposed transfer. Consent or approval from the supplier27
shall not be required for any transfer of the wholesaler's business to a28
designated member or any transfer of less than control of the29
wholesaler's business. The wholesaler shall give the supplier written30
notice of any change in ownership of the wholesaler.31
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Sec. 7. Section 53-218, Reissue Revised Statutes of Nebraska, is1
amended to read: 2
53-218 (1) Notwithstanding any agreement and except as otherwise3
provided for in sections 53-201 to 53-223 and section 3 of this act , a4
supplier shall not amend or modify an agreement, cause a wholesaler to5
resign from an agreement, or cancel, terminate, fail to renew, or refuse6
to continue under an agreement unless the supplier has:7
(a) Satisfied the applicable notice requirements of subsection (3)8
of this section; 9
(b) Acted in good faith; and 10
(c) Good cause for the amendment, modification, forced resignation,11
cancellation, termination, nonrenewal, or discontinuance.12
(2) For each amendment, modification, cancellation, termination,13
nonrenewal, or discontinuance, the supplier shall have the burden of14
proving that it has acted in good faith, that the notice requirements15
under this section have been complied with, and that there was good cause16
for the amendment, modification, cancellation, termination, nonrenewal,17
or discontinuance. 18
(3) Notwithstanding any agreement and except as to new products and19
as otherwise provided in this section and in addition to the time limits20
set forth in subdivision (4)(e) of this section, the supplier shall21
furnish written notice of the amendment, modification, cancellation,22
termination, nonrenewal, or discontinuance of an agreement to the23
wholesaler not less than thirty days before the effective date of the24
amendment, modification, cancellation, termination, nonrenewal, or25
discontinuance. The notice shall be sent by certified mail and shall26
contain: 27
(a) A statement of intention to amend, modify, cancel, terminate,28
not renew, or discontinue the agreement; 29
(b) A statement of the reason for the amendment, modification,30
cancellation, termination, nonrenewal, or discontinuance; and31
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(c) The date on which the amendment, modification, cancellation,1
termination, nonrenewal, or discontinuance shall take effect.2
(4) Notwithstanding any agreement, good cause shall exist for the3
purposes of a cancellation, termination, nonrenewal, or discontinuance4
under subdivision (1)(c) of this section when: 5
(a) There is a failure by the wholesaler to comply with a provision6
of the agreement which is both reasonable and of material significance to7
the business relationship between the wholesaler and the supplier;8
(b) The supplier first acquired knowledge of the failure described9
in subdivision (a) of this subsection not more than twenty-four months10
before the date notification was given pursuant to subsection (3) of this11
section; 12
(c) The wholesaler was given notice by the supplier of failure to13
comply with the agreement within twenty-four months of such failure;14
(d) The wholesaler was afforded a reasonable opportunity to assert15
good faith efforts to comply with the agreement within the time limits16
provided for in subdivision (e) of this subsection; and17
(e) The wholesaler has been afforded thirty days in which to submit18
a plan of corrective action to comply with the agreement and an19
additional ninety days to cure such noncompliance in accordance with the20
plan. 21
(5) Notwithstanding subsections (1) and (3) of this section, a22
supplier may cancel, terminate, fail to renew, or discontinue an23
agreement immediately upon written notice given in the manner and24
containing the information required by subsection (3) of this section if:25
(a) The wholesaler becomes insolvent, files or has filed against it26
a petition under any bankruptcy or receivership law, makes an assignment27
for the benefit of creditors, or is dissolved or liquidated and such28
action materially affects the wholesaler's ability to remain in business;29
(b) The wholesaler's state or federal license is revoked or30
suspended by the appropriate regulatory agency and the wholesaler cannot31
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service the wholesaler's sales territory for more than sixty-one days;1
(c) The wholesaler or a partner, a member, or an individual who owns2
ten percent or more of the partnership, the limited liability company, or3
the stock of a corporate wholesaler has been convicted of a felony under4
the United States Code or the laws of any state which reasonably may5
adversely affect the goodwill or interest of the wholesaler or supplier.6
An existing stockholder, partner, or member or a designated member shall7
have, subject to the provisions of sections 53-201 to 53-223 and section8
3 of this act, the right to purchase the partnership interest, the9
limited liability company member interest, or the stock of the offending10
partner or stockholder, and if the sale is completed prior to conviction,11
the provisions of this subdivision shall not apply; or12
(d) The supplier and wholesaler agree to a termination.13
(6) Notwithstanding subsections (1), (3), and (4) of this section,14
upon not less than fifteen days' written notice given in the manner and15
containing the information required by subsection (3) of this section, a16
supplier may cancel, terminate, fail to renew, or discontinue an17
agreement if: 18
(a) There was intentional fraudulent conduct relating to a material19
matter on the part of the wholesaler in dealings with the supplier or its20
producers. The supplier shall have the burden of proving intentional21
fraudulent conduct relating to a material matter on the part of the22
wholesaler; 23
(b) The wholesaler failed to confine its sales of a brand or brands24
to retailers in its designated sales territory. This subdivision shall25
not apply if there is a dispute between two or more wholesalers as to the26
boundaries of the assigned territory and the boundaries cannot be27
determined by a reading of the description contained in the agreements28
between the supplier and the wholesalers; 29
(c) A wholesaler who has failed to pay for beer ordered and30
delivered in accordance with established terms with the supplier fails to31
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make full payment within two business days after receipt of written1
notice of the delinquency and demand for immediate payment from the2
supplier; 3
(d) A wholesaler intentionally has made a transfer of the4
wholesaler's business, other than a transfer to a designated member or5
pursuant to a loan agreement or debt instrument, without prior written6
notice to the supplier and has failed, within thirty days from the7
receipt of written notice from the supplier of its intent to terminate on8
the ground of such transfer, to reverse the transfer of the wholesaler's9
business; 10
(e) A wholesaler intentionally has made a transfer of his or her11
business, other than a transfer to a designated member, although the12
wholesaler has prior to the transfer received from the supplier a timely13
notice of disapproval of the transfer in accordance with sections 53-20114
to 53-223 and section 3 of this act; or 15
(f) The wholesaler intentionally ceases or ceases for a period of16
more than thirty-one days to carry on business with respect to any of the17
supplier's brand or brands previously serviced by a wholesaler in its18
sales territory designated by the supplier unless such cessation is due19
to a force beyond the control of the wholesaler or to a labor dispute and20
the wholesaler has made good faith efforts to overcome such events. This21
subdivision shall affect only that brand or brands with respect to which22
the wholesaler ceased to carry on business. 23
(7) Notwithstanding subsections (1), (3), (5), and (6) of this24
section, a supplier may cancel, terminate, not renew, or discontinue an25
agreement upon not less than thirty days' written notice if the supplier26
discontinues production or discontinues distribution in this state of all27
the brands sold by the supplier to the wholesaler. Nothing in this28
section shall prohibit a supplier from (a) upon not less than thirty29
days' written notice, discontinuing the distribution of any particular30
brand or package of beer or (b) conducting test marketing of a new brand31
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of beer or of a brand of beer which is not currently being sold in this1
state if the supplier has notified the Nebraska Liquor Control Commission2
in writing of its plans to test market. The notice to the commission3
shall describe the market area in which the test will be conducted, the4
name or names of the wholesaler or wholesalers who will be selling the5
beer, the name or names of the brand of beer being tested, and the period6
of time, not to exceed eighteen months, during which the testing will7
take place. 8
(8) Each wholesaler who sells beer to a retailer in this state shall9
service for the purpose of quality control all the beer it sells to that10
retailer. Each wholesaler shall, to the extent permitted by the Nebraska11
Liquor Control Act and the rules and regulations adopted and promulgated12
pursuant to such act: 13
(a) Rotate the beer it sold to a retailer no less frequently than14
may be specified from time to time by the brand owner so that beer15
produced first will be sold first; 16
(b) Clean and maintain tap equipment and provide related services as17
may be specified from time to time by the brand owner;18
(c) Remove and replace with the same kind of beer any beer it sold19
to a retailer which has not been resold to a consumer within the time20
limits specified by the brand owner; and 21
(d) Provide whatever additional quality control services and comply22
with whatever additional quality control requirements are specified in23
writing from time to time by the brand owner, subject to the conditions24
that those services and requirements are reasonable and are reasonably25
related to promotion of quality control and that the wholesaler has26
received written notice of the services to be provided and the27
requirements to be satisfied and has been granted a reasonable time28
within which to comply. 29
(9) Except in the event of a temporary service interruption, a30
wholesaler shall not sell beer (a) to a retailer who does not have a31
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location within the wholesaler's sales territory at which the retailer is1
entitled to resell beer to consumers or who the wholesaler knows or2
reasonably should know does not have a location within the wholesaler's3
sales territory at which the retailer is entitled to resell beer or (b)4
to any person who the wholesaler has reason to believe will sell or5
supply all or part of such beer to any retailer who does not have a6
location within the wholesaler's sales territory at which the retailer is7
entitled to resell beer. During a period of temporary service8
interruption impacting a particular wholesaler's sales territory, the9
wholesaler who normally services the sales territory shall file with the10
Nebraska Liquor Control Commission and serve on his or her suppliers a11
written notice stating that a temporary service interruption has occurred12
and indicating the anticipated duration of the temporary service13
interruption. After receiving such notice the supplier may designate14
another wholesaler or wholesalers to service the sales territory during15
the period of temporary service interruption. After the temporary service16
interruption, the wholesaler who normally services the sales territory17
shall file with the commission and serve on each wholesaler providing18
temporary service and each supplier a written notice stating that the19
temporary service interruption has ended. Each wholesaler providing20
temporary service shall cease servicing the sales territory after21
receiving such notice. 22
Sec. 8. Section 53-220, Reissue Revised Statutes of Nebraska, is23
amended to read: 24
53-220 A supplier that, in violation of section 53-218 or 53-219,25
(1) has amended, modified, canceled, terminated, or refused to renew any26
agreement, (2) has caused a wholesaler to resign from an agreement, or27
(3) has interfered with, prevented, or unreasonably delayed or, when28
required by sections 53-201 to 53-223 and section 3 of this act , has29
unreasonably withheld or unreasonably delayed consent to or approval of30
any assignment or transfer of a wholesaler's business shall pay the31
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wholesaler reasonable compensation for the diminished value of the1
wholesaler's business, including any ancillary business which has been2
negatively affected by the act of the supplier. The value of the3
wholesaler's business or ancillary business shall include, but not be4
limited to, any goodwill. Nothing in such sections shall give rise to a5
claim against the supplier or wholesaler by any proposed purchaser of the6
wholesaler's business. 7
Sec. 9. Section 53-221, Reissue Revised Statutes of Nebraska, is8
amended to read: 9
53-221 A wholesaler may not waive any of the rights granted in10
sections 53-201 to 53-223 and section 3 of this act , and the provisions11
of any agreement which would have such an effect shall be null and void.12
Nothing in such sections shall be construed to limit or prohibit good13
faith dispute settlements voluntarily entered into by the parties.14
Sec. 10. Section 53-222, Reissue Revised Statutes of Nebraska, is15
amended to read: 16
53-222 (1) Sections 53-201 to 53-223 and section 3 of this act shall17
apply to agreements in existence on April 18, 1989, and agreements18
entered into or renewed after such date. 19
(2) A transferee of a wholesaler that continues in business as a20
wholesaler shall have the benefit of and be bound by all terms and21
conditions of the agreement with the supplier in effect on the date of22
the transfer. A transfer of a wholesaler's business which requires the23
supplier's consent or approval but is disapproved by the supplier shall24
be null and void. 25
(3) A successor to a supplier that continues in business as a26
supplier shall be bound by all terms and conditions of each distribution27
agreement that the predecessor was a party to at the time of transfer28
with respect to each brand the successor continues to make available for29
sale in this state. 30
Sec. 11. Section 53-223, Reissue Revised Statutes of Nebraska, is31
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amended to read: 1
53-223 (1) If a supplier engages in conduct prohibited under2
sections 53-201 to 53-223 and section 3 of this act, a wholesaler with3
whom the supplier has an agreement may maintain a civil action against4
the supplier to recover actual damages reasonably incurred as the result5
of the prohibited conduct. If a wholesaler engages in conduct prohibited6
under such sections, a supplier with whom the wholesaler has an agreement7
may maintain a civil action against the wholesaler to recover actual8
damages reasonably incurred as the result of the prohibited conduct.9
(2) A supplier who violates any provision of such sections shall be10
liable for all actual damages, all court costs, and, in the court's11
discretion, reasonable attorney's fees incurred by a wholesaler as a12
result of the violation. A wholesaler who violates any provision of such13
sections shall be liable for all actual damages, all court costs, and, in14
the court's discretion, reasonable attorney's fees incurred by the15
supplier as a result of the violation. 16
(3) A supplier or wholesaler may bring an action for declaratory17
judgment for determination of any controversy arising pursuant to such18
sections. 19
(4) Upon proper application to the court, a supplier or wholesaler20
may obtain injunctive relief against any violation of such sections. If21
the court grants injunctive relief or issues a temporary restraining22
order, bond shall be posted. 23
(5) The remedies provided by such sections are not exclusive, and24
nothing contained in such sections shall abolish any cause of action or25
remedy available to the supplier or the wholesaler existing on April 18,26
1989. 27
(6) Any legal action taken under such sections or relating to a28
dispute arising out of an agreement or breach thereof or over the29
provisions of an agreement shall be filed in a state or federal court30
located in Nebraska, which state court is located in, or which federal31
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court has jurisdiction and venue of, the county in which the wholesaler1
maintains its principal place of business in this state.2
Sec. 12. This act becomes operative on October 1, 2026.3
Sec. 13. Original sections 53-201, 53-202, 53-213, 53-216, 53-217,4
53-218, 53-220, 53-221, 53-222, and 53-223, Reissue Revised Statutes of5
Nebraska, are repealed. 6
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