(1) A license shall be purely a personal privilege, good for not to exceed one year after issuance unless sooner revoked as provided in the Nebraska Liquor Control Act, and shall not constitute property, nor shall it be subject to attachment, garnishment, or execution, nor shall it be alienable or transferable, voluntarily or involuntarily, or subject to being encumbered or hypothecated.

(2) A license issued under the act terminates immediately upon the sale of the licensed premises named in such license. The purchaser or transferee may submit an application for a license under the act prior to closing such sale or transfer. While such application is pending, the purchaser may request and obtain a temporary operating permit from the commission which shall authorize the purchaser to continue the business which was conducted on the purchased premises under the terms and conditions of the terminated license for ninety days or until the purchaser has obtained a license in its own name, whichever occurs sooner. Prior to the issuance of a temporary operating permit, the purchaser shall supply the commission with documentation from the seller that the seller is current on all accounts with any wholesaler under section 53-123.02. A seller who provides false information regarding such accounts is guilty of a Class IV misdemeanor for each offense. In the absence of such temporary operating permit, the purchaser shall not manufacture, store, or sell alcoholic liquor on the purchased premises until the purchaser has obtained a license in the purchaser's own name. If the application is withdrawn by the applicant or is denied by the commission, the previous license may be reinstated at the discretion of the commission upon request by the previous licensee.

(3) A license shall not descend by the laws of testate or intestate devolution, but it shall cease upon the death of the licensee, except that (a) executors or administrators of the estate of any deceased licensee, when such estate consists in part of alcoholic liquor, or a partnership or limited liability company upon the death of one or more of the partners or members, may continue the business of the sale or manufacture of alcoholic liquor under order of the appropriate court and may exercise the privileges of the deceased or deceased partner or member after the death of such decedent until the expiration of such license, but if such license would have expired within two months following the death of the licensee, the license may be renewed by the administrators or executors with the approval of the appropriate court for a period not to exceed one additional year; or (b) when a license is issued to a husband and wife, as colicensees with rights of survivorship, upon the death of one spouse the survivor may exercise all rights and privileges under such license in his or her own name. The trustee of any insolvent or bankrupt licensee, when such estate consists in part of alcoholic liquor, may continue the business of the sale or manufacture of alcoholic liquor under order of the appropriate court and may exercise the privileges of the insolvent or bankrupt licensee until the expiration of such license.

Annotations

1. License is personal privilege

2. Rights of licensee

3. Miscellaneous

1. License is personal privilege

The 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 licensee

A 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. Miscellaneous

An 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).