LB 867 was just passed in the Nebraska Unicameral but vetoed by Governor Heineman on March 3, 2010. LB 867 seeks to raise the class "S" liquor license from $200 to $1000 per year. Although this only effects out-of-state breweries (wineries, distilleries, and importers) directly, the indirect consequences are much more troubling.
LB 867 will prevent out-of-state producers and importers from doing business in Nebraska. If a brewery has to pay $1000 just to sell beer in Nebraska for the year, a lot of smaller brewers may choose not to enter Nebraska's market. At the same time, some breweries that already sell to Nebraska may decide that the small amount they ship to Nebraska isn't worth the $1000 fee. This fee cannot be pro-rated which means no new breweries will obtain a license until April 1st even if they choose to pay the $1000 fee. Microbreweries stand to lose the most from LB 867 while mega-brewers will go virtually untouched.
Distributors are hurt by this bill too. While distributors that focus on mega-breweries have little to lose, those distributors who base their business on microbreweries (small wineries, micro-distilleries, and small importers) will see a loss of brands and a loss of sales as a result. Consequently, your local beer retailer, local craft bar, and other small businesses will have less craft beer to sell you, the consumer. If the Governor's veto is overridden on Tuesday, thank your Unicameral next time your favorite beer isn't on tap.
In addition to being bad for all craft beer drinkers statewide, our state will suffer financially as well. This bill will result in less tax revenue from liquor taxes paid to the state from distributors and less sales tax revenue will be raised from the lack of sales tax the state could collect from selling these great beers.
The bottom line is that LB 867 is bad for craft beer drinkers in Nebraska because it will discourage new breweries from entering our state and discourage current breweries from continuing to ship to Nebraska. Let's face it, Nebraska isn't a haven for craft beer drinkers anyways. Contact your Nebraska State Senator and voice your concern. They are voting to override the Governor's veto on Tuesday March 9, 2010. If you don't know who represents your district you can find your Senator here:
http://www.nebraskalegislature.gov/senators/senator_find.php Tell them NOT to override the Governor's veto to protect small business and craft beer drinkers statewide.
