53-149 Licenses; term; sale of premises; temporary operating permit; false information; penalty; license not assignable or inheritable; exception; effect of death or bankruptcy of licensee. - Nebraska Statutes

53-149. Licenses; term; sale of premises; temporary operatingpermit; false information; penalty; license not assignable orinheritable; exception; effect of death or bankruptcy of licensee.(1) Alicense shall be purely a personal privilege, good for not to exceed one yearafter issuance unless sooner revoked as provided in the Nebraska Liquor ControlAct, and shall not constitute property, nor shall it be subject to attachment,garnishment, or execution, nor shall it be alienable or transferable, voluntarilyor involuntarily, or subject to being encumbered or hypothecated.(2) A licenseissued under the act terminates immediately upon the sale of the licensedpremises named in such license. The purchaser or transferee may submit anapplication for a license under the act prior to closing such sale or transfer.While such application is pending, the purchaser may request and obtain atemporary operating permit from the commission which shall authorize the purchaserto continue the business which was conducted on the purchased premises underthe terms and conditions of the terminated license for ninety days or untilthe purchaser has obtained a license in its own name, whichever occurs sooner.Prior to the issuance of a temporary operating permit, the purchaser shallsupply the commission with documentation from the seller that the seller iscurrent on all accounts with any wholesaler under section 53-123.02. A sellerwho provides false information regarding such accounts is guilty of a ClassIV misdemeanor for each offense. In the absence of such temporary operatingpermit, the purchaser shall not manufacture, store, or sell alcoholic liquoron the purchased premises until the purchaser has obtained a license in thepurchaser's own name. If the application is withdrawn by the applicant oris denied by the commission, the previous license may be reinstated at thediscretion of the commission upon request by the previous licensee.(3) A license shall not descend by the lawsof testate or intestate devolution, but it shall cease upon the death of thelicensee, except that (a) executors or administratorsof the estate of any deceased licensee, when such estate consists in partof alcoholic liquor, or a partnership or limited liability company upon thedeath of one or more of the partners or members, may continue the businessof the sale or manufacture ofalcoholic liquor under order of the appropriate court and mayexercise the privileges of the deceased or deceased partner or member afterthe death of such decedent until the expiration of such license, but if suchlicense would have expired within two months following the death of the licensee,the license may be renewed by the administrators or executors with the approvalof the appropriate court for a period not to exceed one additional year; or (b) when a license is issued to a husband andwife, as colicensees with rights of survivorship, upon the death of one spousethe survivor may exercise all rights and privileges under such license inhis or her own name. The trustee of any insolvent or bankrupt licensee, whensuch estate consists in part of alcoholic liquor, may continue the businessof the sale or manufacture ofalcoholic liquor under order of the appropriate court and mayexercise the privileges of the insolvent or bankrupt licensee until the expirationof such license. SourceLaws 1935, c. 116, § 27, p. 394; C.S.Supp.,1941, § 53-327; R.S.1943, § 53-149; Laws 1959, c. 249, § 16, p. 874; Laws 1972, LB 1375, § 1; Laws 1976, LB 204, § 5; Laws 1993, LB 121, § 320; Laws 2010, LB861, § 72.Annotations1. License is personal privilege2. Rights of licensee3. Miscellaneous1. License is personal privilegeThe payment of rent to a lessor based on a percentage of sales does not create a partnership between the lessor and lessee in violation of this section, which states that a liquor license is a privilege personal to the grantee, nor does it violate rules 20 and 14(E) of the Nebraska Liquor Control Commission, which prohibit any partner from sharing in profits arising from the granting of any liquor license. Department of Banking, Receiver v. Wilken, 217 Neb. 796, 352 N.W.2d 145 (1984).A liquor license is a purely personal privilege, does not constitute property, and vests no property rights in a licensee. Bali Hai', Inc. v. Nebraska Liquor Control Commission, 195 Neb. 1, 236 N.W.2d 614 (1975).Fact that license is a privilege does not prevent license holder from complaining of unconstitutional rules and regulations. Terry Carpenter, Inc. v. Nebraska Liquor Control Commission, 175 Neb. 26, 120 N.W.2d 374 (1963).A license to sell liquors is purely a personal privilege and not transferable. Stevens v. Fall, 133 Neb. 610, 276 N.W. 401 (1937).2. Rights of licenseeA liquor license is not such a property right as will be protected by injunction. Leeman v. Vocelka, 149 Neb. 702, 32 N.W.2d 274 (1948).License to sell liquors is not alienable, transferable, or subject to encumbrance or hypothecation. Marsh & Marsh, Inc. v. Carmichael, 136 Neb. 797, 287 N.W. 616 (1939).3. MiscellaneousAn agreement between lessor and lessee that lessee will apply for a license for the premises, and will not seek permission to transfer it to another location, and upon expiration of the lease will assist lessor in obtaining a license for the premises is not void. Greco v. Bonacci, 194 Neb. 685, 234 N.W.2d 904 (1975).Licensee was in violation of this section when he permitted another to operate and control the business. Eleven Eighteen Co. v. Nebraska Liquor Control Commission, 191 Neb. 572, 216 N.W.2d 720 (1974).