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LEGISLATURE OF NEBRASKA
ONE HUNDRED NINTH LEGISLATURE
SECOND SESSION
LEGISLATIVE BILL 1128
Introduced by Dover, 19.
Read first time January 20, 2026
Committee: General Affairs
A BILL FOR AN ACT relating to the Nebraska Liquor Control Act; to amend1
section 53-123.17, Revised Statutes Supplement, 2025; to change2
provisions relating to entertainment district licenses and provide3
for a class of consumption-only licenses; and to repeal the original4
section. 5
Be it enacted by the people of the State of Nebraska,6
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Section 1. Section 53-123.17, Revised Statutes Supplement, 2025, is1
amended to read: 2
53-123.17 (1)(a) (1) A local governing body may designate an3
entertainment district in which a commons area may be used by retail,4
craft brewery, and microdistillery licensees and holders of a5
manufacturer's license which obtain an entertainment district license.6
The local governing body may, at any time, revoke such designation if it7
finds that the commons area threatens the health, safety, or welfare of8
the public or has become a common nuisance. 9
(b) As part of such designation, a local governing body may10
designate consumption-only areas of such district. A business within the11
boundaries of such area may obtain a consumption-only class of12
entertainment district license pursuant to subsection (6) of this13
section. 14
(c) The local governing body shall file any such the designation or15
the revocation of the designation with the commission.16
(2) An entertainment district license allows the sale of alcoholic17
liquor for consumption on the premises within the confines of a commons18
area or within the premises of a consumption-only license holder as19
provided in subsection (6) of this section. The consumption of alcoholic20
liquor in the commons area or consumption-only area shall only occur21
during the hours authorized for sale of alcoholic liquor for consumption22
on the premises under section 53-179 and while food service is available23
in the commons area or is available for sale by at least one holder of an24
entertainment district license. Only the holder of an entertainment25
district license or employees of such licensee may sell or dispense26
alcoholic liquor in the commons area. 27
(3) An entertainment district licensee shall serve alcoholic liquor28
to be consumed in the commons area or consumption-only area in containers29
that prominently display the licensee's trade name or logo or some other30
mark that is unique to the licensee under the licensee's retail license,31
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craft brewery license, microdistillery license, or manufacturer's1
license. An entertainment district licensee may allow alcohol sold by2
another entertainment district licensee to enter the licensed premises of3
either licensee. No entertainment district licensee shall allow alcoholic4
liquor to leave the commons area or the premises licensed under its5
retail license, craft brewery license, microdistillery license, or6
manufacturer's license. 7
(4) If the licensed premises of the holder of a license to sell8
alcoholic liquor at retail issued under subsection (6) of section 53-124,9
a craft brewery license, a microdistillery license, or a manufacturer's10
license is adjacent to a commons area in an entertainment district11
designated by a local governing body pursuant to this section, the holder12
of the license may obtain an annual entertainment district license as13
prescribed in this section. The entertainment district license shall be14
issued for the same period and may be renewed in the same manner as the15
retail license, craft brewery license, microdistillery license, or16
manufacturer's license. 17
(5) In order to obtain an entertainment district license, a person18
eligible under subsection (4) of this section shall:19
(a) File an application with the commission upon such forms as the20
commission prescribes; and 21
(b) Pay an additional license fee of three hundred dollars for the22
privilege of serving alcohol in the entertainment district payable to the23
clerk of the local governing body in the same manner as license fees24
under subdivision (4) of section 53-134. 25
(6) A business that is located within the boundaries of an26
entertainment district but that does not hold a retail, craft brewery,27
microdistillery, or manufacturer's license under the Nebraska Liquor28
Control Act may apply to the commission for a consumption-only class of29
entertainment district license on forms prescribed by the commission.30
Such application shall include a license fee of twenty-five dollars31
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payable to the commission. The commission shall grant such licenses so1
long as the local governing body has (a) designated consumption-only2
areas for such entertainment district and (b) approved the applicant's3
consumption-only class of entertainment district license prior to4
submission of the same to the commission. Such class of consumption-only5
entertainment district license shall authorize the holder to allow6
alcoholic beverages sold within the boundaries of an entertainment7
district by other entertainment district licensees to be carried in and8
out of such holder's business premises by patrons, so long as such9
business (a) does not sell or serve such alcoholic liquor and (b)10
otherwise complies with the Nebraska Liquor Control Act, especially those11
provisions forbidding consumption of alcoholic liquor by minors.12
(7) (6) When an application for an entertainment district license is13
filed, the commission shall notify the clerk of the local governing body.14
The commission shall include with such notice one copy of the application15
by mail or electronic delivery. The local governing body and the16
commission shall process the application in the same manner as provided17
in section 53-132. 18
(8) (7) The local governing body may impose an occupation tax on the19
business of an entertainment district licensee doing business within the20
liquor license jurisdiction of the local governing body as provided in21
subdivision (12)(b) (11)(b) of this section in accordance with section22
53-132. 23
(9) (8) The local governing body with respect to entertainment24
district licensees within its liquor license jurisdiction as provided in25
subdivision (12)(b) (11)(b) of this section may cancel an entertainment26
district license for cause for the remainder of the period for which such27
entertainment district license is issued. Any person whose entertainment28
district license is canceled may appeal to the commission in accordance29
with section 53-134. 30
(10) (9) A local governing body may regulate by ordinance, not31
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inconsistent with the Nebraska Liquor Control Act, any area it designates1
as an entertainment district. 2
(11) (10) Violation of any provision of this section or any rules or3
regulations adopted and promulgated pursuant to this section by an4
entertainment district licensee may be cause to revoke, cancel, or5
suspend the retail license issued under subsection (6) of section 53-124,6
craft brewery license, microdistillery license, or manufacturer's license7
held by such licensee. 8
(12) (11) For purposes of this section: 9
(a)(i) Commons area means an area: 10
(A) Within an entertainment district designated by a local governing11
body; 12
(B) Shared by authorized licensees with entertainment district13
licenses, including consumption-only entertainment district licensees;14
(C) Abutting the licensed premises of such licensees;15
(D) With reasonable safety measures in place to protect pedestrians,16
including signage, lighting, and reduced motor vehicle speeds when motor17
vehicles will be in close proximity to pedestrians; and18
(E) With a prohibition on the carrying of open alcoholic liquor19
containers and the consumption of alcoholic liquor on any open street or20
highway except when necessary to cross the same at a designated21
crosswalk. 22
(ii) Commons area may include any area of a public or private right-23
of-way if the area otherwise meets the requirements of this section; and24
(b) Local governing body means the governing body of the city or25
village in which the entertainment district licensee is located.26
Sec. 2. Original section 53-123.17, Revised Statutes Supplement,27
2025, is repealed. 28
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