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Governor Rejects Proposed Liquor Control Commission Rule Change

By Tom Stanton Sep 26, 2025 | 11:57 AM

Governor Jim Pillen has submitted a letter to the Nebraska Liquor Control Commission making clear his rejection of a proposed rule change that would lift the ban on touching by customers in strip clubs that are licensed to sell liquor in Nebraska.

“The submitted change would have removed specific regulatory language describing what constitutes inappropriate physical contact and paved the way for patrons to explicitly, physically touch agents or employees of licenses.” Pillen said in the letter.

“In other words, the Commission has proposed that I approve a rule change that would effectively provide government permission for customers to touch the dancers at a strip club. I will not.”  His letter comes days after the former executive director of the Nebraska Liquor Control Commission was indicted on federal charges.

Hobert Rupe resigned in June after serving on the commission for more than 20 years.  The indictment charges were announced by the FBI, the U-S Attorney’s Office and Attorney General Mike Hilgers.

FBI Special Agent Eugene Kowel says the investigation revealed that Rupe received several benefits from Lincoln strip club owner Brent Zywiec for three years, including sex acts, free drinks, cash and free entry to two lounges in exchange for official actions by the commission. Zywiec owns The Office and the Night Before Lounge.

Rupe is accused of using his position to receive the benefits and deliberately not reporting illegal activity at the clubs.  “Rupe used his government position to shield coconspirators from law enforcement attention, and to enrich their business,” Kowel says.

“In fact, Mr. Rupe would deliberately not report illegal activity he observed at some of these clubs and would actively refer allegations of criminal activity at rival clubs in an effort to increase the business of his coconspirators.”

Rupe and Zywiec face decades behind bars if convicted on all charges.  They were both arrested on Wednesday.