Boucher Law Firm

HOW TO GET AND KEEP A LIQUOR LICENSE

Obtaining a liquor license is a time-consuming process. Liquor licensing is done by state entities, and each state liquor administration has different names, like the Nebraska Liquor Control Commission (NLCC)and the Iowa Alcoholic Beverages Division.  Although the names are different, they accomplish the same tasks. One of those tasks is processing liquor license applications.  Further, cities and localities throughout the state generally have laws and regulations in acquiring such license, so it is important to begin at the local level with your application.

 Depending on the local regulations, there may be several different classes of liquor licenses. There may be several choices of license classes depending on how one intends to sell the alcoholic beverages.  Some steps to take when applying for a liquor license in Nebraska are provided below.

 First, find your state liquor administration website. In Nebraska, the NLCC website is www.lcc.ne.gov.

 Second, determine whether you are a wholesaler or a retailer.  A wholesaler distributes alcohol to businesses for resale and a retailer sells alcohol to consumers.  Define what type of liquor license to obtain. This will consist of the type of business you own or are purchasing--like a grocery store, liquor store, restaurant or bar--and the type of alcoholic beverages you intend to sell.  In any event, you need a liquor license  specific to your business.  For example, a bar that sells beer, wine & distilled spirits on site only (no off-sale) would need a Retail Class I liquor license.  The different types of licenses are defined at www.lcc.ne.gov/classlicense.html. 

 Third, download the application forms at www.lcc.ne.gov/licensing.html.  You will need to fill out certain forms depending on the type of license for which you are applying.  If you are purchasing or leasing a business with an existing liquor license, you may enter into a temporary agency agreement with the business to operate on its license until your license application is processed. 

In order to do this, you must (1) have on file with the NLCC a formal application for a liquor license; (2) file with the application a temporary agency agreement which can be found at www.lcc.ne.gov/online_forms/Temp%20Agency%20Agreement.pdf; (3) the Licensee must maintain a possessory interest in the property in the form of a lease, use permit or license until your liquor license is granted; (4) agents may be paid a specific agency fee and net profits must be placed in an escrow account during the temporary period; and (5) temporary agency agreements may not exceed 120 days in total duration. 

 Further, any remodeling or other physical changes to the property must include the approval of the Fire Marshal prior to the granting of the temporary agency agreement.  Finally, any violations occurring during the period a temporary agency agreement is in effect will be adjudicated in the following manner: if the license application is not issued to the new applicant at the time of the Order, the record of penalty will be recorded against the original licensee or if the license is issued to the new applicant, the record of penalty will be recorded against the license of the applicant.

 Fourth, fill out all requested supporting documentation for your application. You will need to fill out forms proving your citizenship and residency, premises information (including diagrams in some cases), zoning forms and planned operation information. The checklist and forms needed for a retail license may be found at www.lcc.ne.gov/retailappforms.html.  

 Fifth, submit your application to the NLCC.  The Nebraska State Patrol will open an investigation into your background and specifics of your application. Based upon the investigation, a liquor license will be issued or, if the NLCC has any questions or issues it wants dealt with first, a show cause hearing will be scheduled.  When ANY hearing is scheduled before the NLCC, we recommend you obtain legal counsel.

 Once you are issued a license, there are some great guidelines to help you maintain it and avoid being called before the NLCC at www.lcc.ne.gov/pdfs/Info%20Brochure.pdf.  If you receive a request to appear before the NLCC for a violation of the liquor control act, we recommend you obtain legal advice before appearing without an attorney.


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