State lawmakers gave craft breweries the ability to operate up to five tasting rooms under a single liquor license in a sweeping change to Nebraska's liquor laws in 2016.
A bill (LB900) before the Legislature this year aims to provide the same opportunities to the makers of whiskey, bourbon, vodka and other hard alcohols.
Sen. John Lowe's bill to allow microdistilleries to operate five retail locations under a single license would replicate the earlier expansion of craft breweries.
"I believe it is time for the same opportunities for microdistilleries because we have seen how this expansion has benefited numerous small businesses," the Kearney senator said.
Cody Schmick, a managing partner at Kinkaider Brewing, which also operates Sideshow Spirits, Lincoln's "first legal distillery," said such a change would elevate Nebraska's distilling business out of its infancy.
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There are 68 licensed craft breweries in Nebraska, with two more seeking approval from the Nebraska Liquor Control Commission, according to executive director Hobie Rupe.
Currently, there are 13 microdistilleries operating in the Cornhusker state.
"We're taking a big bet on it," Schmick told the Legislature's General Affairs Committee, where the bill was heard Monday.
Schmick said expanding the number of distilleries that could operate under a single license would eliminate unnecessary red tape for Sideshow Spirits.
Under existing statute, Sideshow is required to sell the alcohol made at its downtown Lincoln production facility to a distributor, who can then sell it to parent company Kinkaider.
If Lowe's bill passes the Legislature and is signed into law, Schmick said Sideshow could put its Kinkaider locations under its liquor license, allowing it to use its own distribution system, rather than having to use a third party.
"It's a full-time delivery job moving beer between locations," he said. "Even though we are paying for a truck, upkeep and maintenance, we cannot utilize it for spirits and canned cocktails."
The proposal has the backing of the Platte Institute, which said it would provide opportunities for entrepreneurs and small businesses.
Vanessa Silke, an attorney representing the Nebraska Craft Brewers Guild, said the change would not remove any regulations distilleries must follow.
The law allowing craft brewers to open multiple taprooms was "a massive step forward" for small, independent beer companies, Silke said.
"We're looking for the same opportunities for the distilling industry in Nebraska," she added.
The committee did not take action on the bill Monday.