CHARITABLE GAMING DIVISION

NEBRASKA DEPARTMENT OF REVENUE AUGUST 2015

CHARITABLE GAMING DIVISION

NEBRASKA PICKLECARD LOTTERY ACT

9-079-1990 Rev. 8-2015Supersedes 9-079-1990 Rev. 6-2012

revenue.nebraska.gov

BINGO AND OTHER GAMBLINGARTICLE 3

PICKLE CARDSSECTION9-301 Act, how cited.9-302 Purposes of act.9-303 Definitions,wherefound.9-304 Allowableexpenses,defined.9-305 Cancel,defined.9-305.01 Definiteprofit,defined.9-306 Department,defined.9-306.01 Designatedpremises,defined.9-307 Distributor,defined.9-308 Grossproceeds,defined.9-308.01 Grossprofit,defined.9-309 Lawfulpurpose,defined.9-310 License,defined.9-311 Licensedorganization,defined.9-312 Lotterybythesaleofpicklecards,defined.9-313 Manufacturer,defined.9-314 Member,defined.9-314.01 Netprofit,defined.9-315 Picklecard,defined.9-316 Picklecardoperator,defined.9-317 Picklecardunit,defined.9-317.01 Premises,defined.9-318 Repealed. Laws 1988, LB 1232, § 54.9-319 Revoke,defined.9-320 Salesagent,defined.9-321 Suspend,defined.9-321.01 Unitcost,defined.9-321.02 Utilization-of-fundsmember,defined.9-321.03 Volunteerfirecompanyorvolunteerfirst-aid,rescue,ambulance,oremergencysquad,defined.9-322 Department;powers,functions,andduties.9-322.01 Administrativefine;disposition.9-322.02 Denialofapplication;procedure.9-322.03 Repealed. Laws 2007, LB 638, § 21.9-323 Suspensionoflicense;limitation;procedure.9-324 Hearing;required;when;notice.9-325 Proceedingbeforedepartment;service;security;appeal.9-326 License;qualifiedapplicants.9-327 License;application;contents;enumerated;dutytokeepcurrent.9-328 Licenses;renewal;application;requirements;classes;fees.9-329 Salesagent;licenserequired;application;contents;fee;temporarylicense.9-329.01 Salesagent;licenseapplicant;qualifications;licensee;limitations.9-329.02 Picklecardoperator;licenserequired;application;contents;fee;restrictions;authorizationrequired; equipmentrequirements.9-329.03 Picklecardoperator;qualifiedapplicant;licensee;limitations.9-329.04 Repealed. Laws 1997, LB 248, § 39. (Operative date October 1, 1997.)9-330 Distributor’slicense;application;requirements;fee;renewal.9-331 Distributor;employeeorspouse;participationingambling;restrictions.9-332 Manufacturerofpicklecards;licenserequired;application;fee;changeininformation;renewal.9-332.01 Manufacturer;premarketingactivities;approvalrequired.9-333 Manufacturer;records.9-334 Nonresidentmanufacturer;designatedagentforserviceofprocess.9-335 Manufacturer;employeeorspouse;restrictiononactivities.9-336 Picklecardorpicklecardunit;serialnumberrequired;manufacturer;duties.9-337 Picklecards;constructionstandards.

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9-338 Picklecardorpicklecardunit;restrictionsonmanufacturer;contraband.9-339 Department;examinationofpicklecards.9-340 Picklecardorpicklecardunits;restrictions;costofapproval.9-340.01 Distributor;providepurchaserwithinvoice.9-340.02 Picklecardunits;dispensingdevices;payment;definiteprofit;howremitted;delivery;credit;limitations.9-341 Licensedmanufacturer;dutytokeeprecords.9-342 Licensedorganization;picklecards;powersandduties;purchases;limitation.9-343 Distributor;records;reports.9-344 Distributor;taxation;deficiencies.9-345 Participation;agelimitation.9-345.01 Conductoflottery;location;specialfunction.9-345.02 Flarecards;punchboards;posting;identification.9-345.03 Picklecards;dispensingdevice;registration;application;fee;decal;nontransferable;access;violations;penalties.9-345.04 Sealcards;authorized;requirements.9-346 Determinationofwinner;picklecards;requirements.9-347 Grossproceeds;definiteprofit;use;restrictions;allocationofexpenses.9-347.01 Definiteprofit;distribution;netprofit;use.9-348 Segregationofdefiniteprofit;mannerofpayment;records;requirements.9-348.01 Lotterybythesaleofpicklecards;sourcesoffunding;payments.9-349 Lotterybythesaleofpicklecards;reports.9-350 TaxCommissioner;powertoseizecontraband;effect.9-351 Unauthorizedsaleorpossessionofpicklecards;penalty.9-352 Violations;penalties;enforcement;venue.9-353 Violations;standingtosue.9-354 Civilaction;reliefpermitted.9-355 Civilprocedurestatutes;applicability.9-356 Returns,reports,andrecords;disclosure;limitations;violation;penalty.

9-301. Act, how cited. Sections9-301to9-356shallbeknownandmaybecitedastheNebraskaPickleCardLotteryAct.Source: Laws 1986,LB1027, § 67;Laws 1988,LB1232, § 4; Laws 1991,LB 795, § 1; Laws 1994,LB 694, § 62;Laws 1996,LB 1277, § 2; Laws 2002, LB 545, § 21.Operative date: July 20, 2002.

9-302. Purposes of act. (1)ThepurposeoftheNebraskaPickleCardLotteryActistoprotectthehealthandwelfareofthepublic,toprotecttheeconomicwelfareandinterestinpicklecardsalesandwinnings,toinsurethattheprofitsderivedfromtheoperationoflotterybythesaleofpicklecardsareaccuratelyreportedinorderthattheirrevenue-raisingpotentialbefullyexposed,toinsurethattheprofitsareusedforlegitimatepurposes,andtopreventthepurposesforwhichtheprofitsoflotterybythesaleofpicklecardsaretobeusedfrombeingsubvertedbyimproperelements.LotterybythesaleofpicklecardsshallbeplayedandconductedonlybythosemethodspermittedintheNebraskaPickleCardLotteryAct.Nootherform,meansofselectionormethodofplayshallbeauthorizedorpermitted.

(2)ThepurposeoftheNebraskaPickleCardLotteryActisalsotocompletelyandfairlyregulateeachlevelofthetraditionalmarketingschemeofpicklecardstoinsurefairness,quality,andcompliancewiththeConstitutionoftheStateofNebraska.Toaccomplishsuchpurpose,theregulationandlicensureofmanufacturersofpicklecards,nonprofitorganizations,distributors,salesagents,picklecardoperators,andanyotherpersoninvolvedinthemarketingschemearenecessary.

Source: Laws1986,LB1027,§68;Laws1988,LB1232,§5.

9-303. Definitions, where found. ForpurposesoftheNebraskaPickleCardLotteryAct,unlessthecontextotherwiserequires,thedefinitionsfoundinsections9-304to9-321.02shallbeused.

Source: Laws1986,LB1027,§69;Laws1988,LB1232,§6;Laws1994,LB694,§63;Laws2003,LB3,§2.Effective date: August 31, 2003.

9-304. Allowable expenses, defined. Allowableexpensesshallmean: (1)Allcostsassociatedwiththepurchasing,printing,ormanufacturingofanyitemstobeusedordistributedtoparticipants; (2)Allofficeexpenses; (3)Allpromotionalexpenses; (4)Allsalariesofpersonsemployedtooperatethelotterybythesaleofpicklecards; (5)Anyrentalorleaseexpense;

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(6)Anyfeepaidtoanypersonassociatedwiththeoperationofanylotterybythesaleofpicklecards,includinganycommissionpaidtoasalesagentandanyexpenseforwhichasalesagentisreimbursed;

(7)Anydeliveryorshippingchargeincurredbyalicensedorganizationinconnectionwiththelotterybythesaleofpicklecards; (8)Anylicensefeespaidtothedepartmenttolicensetheorganization,eachutilization-of-fundsmember,andeachsalesagentand

anypicklecarddispensingdeviceregistrationfeespaidtothedepartmenttoregisterdevicesutilizedatthelicensedorganization'sdesignatedpremisesoritsbingooccasions;and

(9)Anypicklecarddispensingdevicerepairsormaintenancepaidbythelicensedorganization.Source: Laws1986,LB1027,§70;Laws1988,LB1232,§7;Laws1994,LB694,§64;Laws2002,LB545,§22.Operative date: July 20, 2002.

9-305. Cancel, defined. Cancelshallmeantodiscontinueallrightsandprivilegestoholdalicenseforuptothreeyears.Source: Laws 1986, LB 1027, § 71.

9-305.01. Definite profit, defined. Definiteprofitshallmeanthegrossproceedsfromapicklecardunitlessallofthepossibleprizesintheunit.

Source: Laws1988,LB1232,§8;Laws1989,LB767,§28.

9-306. Department, defined. DepartmentshallmeantheDepartmentofRevenue.Source: Laws 1986, LB 1027, § 72.

9-306.01. Designated premises, defined. Designatedpremisesshallmeanonelocationselectedbyalicensedorganizationatwhichindividualpicklecardsmaybesoldasopportunitiesforparticipationinalotterybythesaleofpicklecards.Onlyoneofthefollowingtypesoflocationsmaybeselectedasadesignatedpremises:(1)Inthecaseofanorganizationholdingacertificateofexemptionundersection501(c)(3),(c)(4),or(c)(5)oftheInternalRevenueCodeoravolunteerfirecompanyorvolunteerfirst-aid,rescue,ambulance,oremergencysquad,onepieceofrealpropertywhichisowned,leased,orusedbytheorganizationasitsprincipaloffice,whichisinusebytheorganizationprimarilyforpurposesotherthantheconductofgamingactivities,andwhichisnotusedinconnectionwithanyothertypeofretailbusinessactivityotherthananoccasionalsaleasdefinedinsection77-2701.24;or(2)Inthecaseofanorganizationholdingacertificateofexemptionundersection501(c)(7),(c)(8),(c)(10),or (c)(19)oftheInternalRevenueCode,onepieceofrealpropertywhichisowned,leased,orusedbytheorganizationasitsprincipalofficeandwhichisinusebytheorganizationprimarilyforpurposesotherthantheconductofgamingactivities.Forpurposesofthissection,principalofficeshallmeantheplacewheretheprincipalaffairsandbusinessofthelicensedorganizationaretransacted,includingwheretheofficersandmembersassembletodiscussandtransactthebusinessoftheorganization,whereitsmeetingsareheld,andgenerallywhereitsrecordsarekept.

Source: Laws1988,LB1232,§9;Laws1989,LB767,§29;Laws1991,LB427,§29;Laws1992,LB871,§1;Laws1996,LB1277,§3;Laws2002, LB545,§23;Laws2003,LB282,§1.Note: ThechangemadebyLB282,§1,becomesoperativeonJanuary1,2004.

9-307. Distributor, defined.Distributor shallmean anyperson licensedpursuant to section9-330,whopurchases or otherwiseobtainspicklecardunitsfrommanufacturersandsells,distributes,orotherwiseprovidespicklecardunitsinthisstatetolicensedorganizations.

Source: Laws1986,LB1027,§73;Laws1994,LB694,§65.Operative date: October 1, 1994.

9-308. Gross proceeds, defined. Grossproceedsshallmeanthetotalpossiblereceiptsfromthesaleofallpicklecardsinanypicklecardunit.

Source: Laws1983,LB259,§7;Laws1984,LB949,§13;R.S.Supp.,1984,§9-140.03;Laws1986,LB1027,§74.

9-308.01. Gross profit, defined.Grossprofitshallmeanthedefiniteprofitfromthesaleofapicklecardunitlessanycommissionpaidbyalicensedorganizationtoapicklecardoperatorsellingindividualpicklecardsonbehalfofthelicensedorganization.

Source: Laws 1988, LB 1232, § 10.

9-309. Lawful purpose, defined.(1)Lawfulpurpose,foralicensedorganizationmakingadonationofitsnetprofitsderivedfromitslotterybythesaleofpicklecardssolelyforitsownorganization,shallmeandonatingsuchnetprofitsforanyactivitywhichbenefitsandisconductedbytheorganization,includinganycharitable,benevolent,humane,religious,philanthropic,youthsports,educational,civic,orfraternalactivityconductedbytheorganizationforthebenefitofitsmembers.

(2)Lawfulpurpose,foralicensedorganizationmakingadonationofitsnetprofitsderivedfromitslotterybythesaleofpicklecardsoutsideofitsorganization,shallmeandonatingsuchnetprofitsonlyto:(a)TheStateofNebraskaoranypoliticalsubdivisionthereof,butonlyifthecontributionorgiftismadeexclusivelyforpublicpurposes;(b)Acorporation,trust,communitychest,fund,orfoundation:(i)CreatedororganizedunderthelawsofNebraskawhichhasbeeninexistenceforfiveconsecutiveyearsimmediatelyprecedingthedateofthedonationandwhichhasitsprincipalofficelocatedinNebraska;(ii)Organizedandoperated

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exclusivelyforreligious,charitable,scientific,literary,oreducationalpurposes,forthepreventionofcrueltytochildrenoranimals,ortofosternationalorinternationalamateursportscompetition;(iii)Nopartofthenetearningsofwhichinurestothebenefitofanyprivateshareholderorindividual;(iv)Whichisnotdisqualifiedfortaxexemptionundersection501(c)(3)oftheInternalRevenueCodebyreasonofattemptingtoinfluencelegislation;and(v)Whichdoesnotparticipateinanypoliticalcampaignonbehalfofanycandidateforpoliticaloffice;(c)Apostororganizationofwarveteransoranauxiliaryunitorsocietyof,trustfor,orfoundationforanysuchpostororganization:(i)OrganizedintheUnitedStatesorinanyterritoryorpossessionthereof;and(ii)Nopartofthenetearningsofwhichinurestothebenefitofanyprivateshareholderorindividual;or(d)avolunteerfirecompanyorvolunteerfirst-aid,rescue,ambulance,oremergencysquadservinganycity,village,county,township,orruralorsuburbanfireprotectiondistrictinNebraska.

(3)Nodonationofnetprofitsunderthissectionshall(a)inuretothebenefitofanyindividualmemberofthelicensedorganizationmakingthedonationexcepttotheextentitisinfurtheranceofthepurposesdescribedinthissectionor(b)beusedforanyactivitywhichattemptstoinfluencelegislationorforanypoliticalcampaignonbehalfofanyelectedofficialorpersonwhoisorhasbeenacandidateforpublicoffice.

Source: Laws1986,LB1027,§75;Laws1988,LB1232,§11;Laws1994,LB694,§66;Laws1995,LB344,§11;Laws1995,LB574,§8;Laws2002, LB 545, § 24.Operative date: July 20, 2002.

9-310. License, defined.Licenseshallmeananylicensetoconductalotterybythesaleofpicklecardsasprovidedinsection9-326,anylicenseforautilization-of-fundsmemberasprovidedinsection9-327,anysalesagent’slicenseasprovidedinsection9-329,anypicklecardoperator’slicenseasprovidedinsection9-329.02,anydistributor’slicenseasprovidedinsection9-330,oranymanufacturer’slicenseasprovidedinsection9-332.

Source: Laws1986,LB1027,§76;Laws1989,LB767,§30;Laws1994,LB694,§67.Operative date: October 1, 1994.

9-311. Licensed organization, defined. Licensedorganizationshallmeananonprofitorganizationorvolunteerfirecompanyorvolunteerfirst-aid,rescue,ambulance,oremergencysquadlicensedtoconductalotterybythesaleofpicklecardsundertheNebraska Pickle Card Lottery Act.

Source: Laws1986,LB1027,§77;Laws2002,LB545,§25.Operative date: July 20, 2002.

9-312. Lottery by the sale of pickle cards, defined. Lotterybythesaleofpicklecardsshallmeananygamblingschemeinwhichparticipantspayoragreetopaysomethingofvalueforapicklecard.AnylotterybythesaleofpicklecardsshallbeconductedpursuanttoandinaccordancewiththeNebraskaPickleCardLotteryAct.

LotterybythesaleofpicklecardsshallnotmeanorincludeanyactivityauthorizedorregulatedundertheNebraskaBingoAct,exceptasprovidedinsection9-346,theNebraskaCountyandCityLotteryAct,theNebraskaLotteryandRaffleAct,theNebraskaSmallLotteryandRaffleAct,theStateLotteryAct,section9-701,orChapter2,article12,norshalllotterybythesaleofpicklecardsmeanorincludeanyactivityprohibitedunderChapter28,article11.

Source: Laws1986,LB1027,§78;Laws1991,LB849,§46;Laws1993,LB138,§4;Laws2000,LB658,§1.Effective date: July 13, 2000 Cross References:

Nebraska Bingo Act,seesection9-201.Nebraska County and City Lottery Act,seesection9-601.Nebraska Lottery and Raffle Act,seesection9-401. Nebraska Small Lottery and Raffle Act,seesection9-501.State Lottery Act,seesection9-801.

9-313. Manufacturer, defined. Manufacturershallmeananypersonwhoassemblesfromrawmaterialsorsubpartsacompletedpieceorpiecesofpicklecardsandpicklecardunits.

Source: Laws1985,LB408,§10;R.S.Supp.,1985,§9-140.15;Laws1986,LB1027,§79.

9-314. Member, defined. Membershallmeanapersonwhohasqualifiedforandbeenadmittedtomembershipinalicensedorganizationpursuanttoitsbylaws,articlesofincorporation,charter,rules,orotherwrittenstatementforpurposesotherthanconductingactivitiesundertheNebraskaPickleCardLotteryAct.Membershallnotincludesocialorhonorarymembers.

Source: Laws1986,LB1027,§80;Laws1988,LB1232,§12.

9-314.01. Net profit, defined. Netprofitshallmeanthegrossprofitfromthesaleofapicklecardunitlesstheunitcostandallowableexpensesincurredbyalicensedorganizationinconnectionwiththesaleofapicklecardunit.

Source: Laws 1988, LB 1232, § 13.

9-315. Pickle card, defined. Picklecardshallmeananydisposablecard,board,orticketwhichaccordsapersonanopportunitytowinacashprizebyopening,pulling,detaching,orotherwiseremovingoneormoretabsfromthecard,board,ortickettorevealasetofnumbers,letters,symbols,orconfigurations,oranycombinationthereof,andshallinclude,butnotbelimitedto,anycardknownasapickleticket,pickle,break-open,pull-tab,pull-tabboard,punchboard,sealcard,pullcard,oranyothersimilarcard,board,orticketwhichisincludedunderthissection,whetherreferredtobyanyothername.

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Picklecardshallnotmeanorincludeany:(1)CardusedinconnectionwithbingoconductedpursuanttotheNebraskaBingoAct,exceptasprovidedinsection9-346;

(2)RacingticketorwagerinconnectionwithanyhorseraceconductedpursuanttoChapter2,article12; (3)Scrape-offorrub-offticket; (4)Card,ticket,orotherdeviceusedinconnectionwithanykindofgambling,lottery,raffle,orgiftenterpriseauthorizedor

regulatedundertheNebraskaCountyandCityLotteryAct,theNebraskaLotteryandRaffleAct,theNebraskaSmallLotteryandRaffleAct,theStateLotteryAct,orsection9-701;or

(5)Card,ticket,orotherdeviceprohibitedunderChapter28,article11.Source: Laws1986,LB1027,§81;Laws1991,LB849,§47;Laws1993,LB138,§5;Laws1994,LB694,§68;Laws1996,LB1277,§4;Laws2000,LB658,§2.Effective date: July 13, 2000.Cross References: Nebraska Bingo Act,seesection9-201.Nebraska County and City Lottery Act, seesection9-601.Nebraska Lottery and Raffle Act,seesection 9-401. Nebraska Small Lottery and Raffle Act,seesection9-501.State Lottery Act,seesection9-801.

9-316. Pickle card operator, defined.Picklecardoperatorshallmeananysoleproprietorship,partnership,limitedliabilitycompany,orcorporationwhichsellsindividualpicklecardsonbehalfofthelicensedorganization.

Source: Laws1985,LB408,§9;R.S.Supp.,1985,§9-140.14;Laws1986,LB1027,§82;Laws1988,LB1232,§14;Laws1993,LB121,§109.

9-317. Pickle card unit, defined. Picklecardunitshallmeanaseriesorcompletesetofpicklecards,whichconsistsofallwinningandlosingcardsinaparticularunit,set,series,deal,orschemeforalotterybythesaleofpicklecards,inthereceptacleorboxinandwithwhichtheunitofpicklecardsissoldbyadistributor.

Source: Laws1983,LB259,§9;Laws1984,LB949,§15;R.S.Supp.,1984,§9-140.05;Laws1986,LB1027,§83.

9-317.01. Premises, defined.Premisesshallmeanabuildingoradistinctportionofabuildingandshallnotincludeanyareaoflandsurroundingthebuilding.

Source: Laws 1988, LB 1232, § 15.

9-318. Repealed. Laws 1988, LB 1232, § 54.

9-319. Revoke, defined. Revokeshallmeantopermanentlyvoidandrecallallrightsandprivilegesofanorganizationorapersontoobtainalicense.

Source: Laws 1986, LB 1027, § 85.

9-320. Sales agent, defined. Salesagentshallmeananypersonwhomarkets,sells,ordeliversanypicklecardunitonbehalfofalicensedorganizationtoanylicensedpicklecardoperator.

Source: Laws1985,LB408,§8;R.S.Supp.,1985,§9-140.13;Laws1986,LB1027,§86;Laws1988,LB1232,§16.

9-321. Suspend, defined. Suspend shallmean to cause a temporary interruption of all rights and privileges of a license or the renewalthereof.

Source: Laws 1986, LB 1027, § 87.

9-321.01. Unit cost, defined.Unitcostshallmeanthetotalcostofapicklecardunitpaidbyalicensedorganizationtoadistributor.Unitcostshallincludethetaxondefiniteprofitprescribedinsection9-344andanyapplicablesalestax.Unitcostshallalsoincludeanyapplicablefederalgamingtaxforwhichthelicensedorganizationisliableinconnectionwithitspurchaseorsaleofapicklecardunit.

Source: Laws 1988, LB 1232, § 17.

9-321.02. Utilization-of-funds member, defined.Utilization-of-fundsmembershallmeanamemberoftheorganizationwhoshallberesponsibleforsupervisingtheconductofthelotterybythesaleofpicklecardsandfortheproperutilizationofthegrossproceedsderivedfromtheconductofthelotterybythesaleofpicklecards.

Source: Laws 1994, LB 694, § 69.Operative date: October 1, 1994.

9-321.03. Volunteer fire company or volunteer first-aid, rescue, ambulance, or emergency squad, defined.Volunteerfirecompanyorvolunteerfirst-aid,rescue,ambulance,oremergencysquadshallmeanavolunteerassociationororganizationservinganycity,village,county,township,orruralorsuburbanfireprotectiondistrictinNebraskabyprovidingfireprotectionoremergencyresponseservicesforthepurposeofprotectinghumanlife,health,orproperty.

Source: Laws 2002, LB 545, § 26.Operative date: July 20, 2002.

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9-322. Department; powers, functions, and duties.Thedepartmentshallhavethefollowingpowers,functions,andduties:(1)Toissuelicensesandtemporarylicenses;

(2)Todenyany licenseapplicationor renewalapplicationforcause.Cause fordenialofanapplicationforor renewalofalicenseshallincludeinstancesinwhichtheapplicantindividuallyor,inthecaseofabusinessentityoranonprofitorganization,anyofficer,director,employee,orlimitedliabilitycompanymemberoftheapplicantorlicensee,otherthananemployeewhosedutiesarepurelyministerialinnature,anyotherpersonorentitydirectlyorindirectlyassociatedwithsuchapplicantorlicenseewhichdirectlyorindirectlyreceivescompensationotherthandistributionsfromabonafideretirementorpensionplanestablishedpursuanttoChapter1,subchapterDoftheInternalRevenueCode,fromsuchapplicantorlicenseeforpastorpresentservicesinaconsultingcapacityorotherwise,thelicensee,oranypersonwithasubstantialinterestintheapplicantorlicensee:(a)Violatedtheprovisions,requirements,conditions,limitations,ordutiesimposedbytheNebraskaBingoAct,theNebraskaCountyandCityLotteryAct,theNebraskaLotteryandRaffleAct,theNebraskaPickleCardLotteryAct,theNebraskaSmallLotteryandRaffleAct,ortheStateLotteryAct,oranyrulesorregulationsadoptedandpromulgatedpursuanttosuchacts;(b)Knowinglycaused,aided,abetted,orconspiredwithanothertocauseanypersontoviolateanyoftheprovisionsofsuchactsoranyrulesorregulationsadoptedandpromulgatedpursuanttosuchacts;(c)Obtainedalicenseorpermitpursuanttosuchactsbyfraud,misrepresentation,orconcealment;(d)Wasconvictedof,forfeitedbonduponachargeof,orpleadedguiltyornolocontenderetoanyoffenseorcrime,whetherafelonyormisdemeanor,involvinganygamblingactivityorfraud,theft,willfulfailuretomakerequiredpaymentsorreports,orfilingfalsereportswithagovernmentalagencyatanylevel;(e)Wasconvictedof,forfeitedbonduponachargeof,orpleadedguiltyornolocontenderetoanyfelonyotherthanthosedescribedinsubdivision(d)ofthissubdivisionwithinthetenyearsprecedingthefilingoftheapplication;(f)Deniedthedepartmentoritsauthorizedrepresentatives,includingauthorizedlawenforcementagencies,accesstoanyplacewherepicklecardactivityrequiredtobelicensedundertheNebraskaPickleCardLotteryActisbeingconductedorfailedtoproduceforinspectionorauditanybook,record,document,oritemrequiredbylaw,rule,orregulation;(g)Madeamisrepresentationoforfailedtodiscloseamaterialfacttothedepartment;(h)Failedtoprovebyclearandconvincingevidencehis,her,oritsqualificationstobelicensedinaccordancewiththeNebraskaPickleCardLotteryAct; (i)Failed topayany taxesandadditions to taxes, includingpenaltiesand interest, requiredby theNebraskaBingoAct,theNebraskaCountyandCityLotteryAct,theNebraskaLotteryandRaffleAct,ortheNebraskaPickleCardLotteryAct,oranyothertaxesimposedpursuanttotheNebraskaRevenueActof1967;(j)FailedtopayanadministrativefineleviedpursuanttotheNebraskaBingoAct,theNebraskaCountyandCityLotteryAct,theNebraskaLotteryandRaffleAct,ortheNebraskaPickleCardLotteryAct;(k)Failedtodemonstrategoodcharacter,honesty,andintegrity;(l)Failedtodemonstrate,eitherindividuallyor,inthecaseofabusinessentityoranonprofitorganization,throughitsmanagers,employees,oragents,theability,experience,orfinancialresponsibilitynecessarytoestablishormaintaintheactivityforwhichtheapplicationismade;or(m)wascitedandwhoseliquorlicensewassuspended,canceled,orrevokedbytheNebraskaLiquorControlCommissionforillegalgamblingactivitiesthatoccurredonorafterJuly20,2002,onoraboutapremiselicensedbythecommissionpursuanttotheNebraskaLiquorControlActortherulesandregulationsadoptedandpromulgatedtotheact;

NorenewalofalicenseundertheNebraskaPickleCardLotteryActshallbeissuedwhentheapplicantforrenewalwouldnotbeeligibleforalicenseuponafirstapplication;

(3)Torevoke,cancel,orsuspendforcauseanylicense.Causeforrevocation,cancellation,orsuspensionofalicenseshallincludeinstancesinwhichthelicenseeindividuallyor,inthecaseofabusinessentityoranonprofitorganization,anyofficer,director,employee,orlimitedliabilitycompanymemberofthelicensee,otherthananemployeewhosedutiesarepurelyministerialinnature,anyotherpersonorentitydirectlyorindirectlyassociatedwithsuchlicenseewhichdirectlyorindirectlyreceivescompensationotherthandistributionsfromabonafideretirementorpensionplanestablishedpursuanttoChapter1,subchapterDoftheInternalRevenueCodefromsuchlicenseeforpastorpresentservicesinaconsultingcapacityorotherwise,oranypersonwithasubstantialinterestinthelicensee:(a)Violatedtheprovisions,requirements,conditions,limitations,ordutiesimposedbytheNebraskaBingoAct,theNebraskaCountyandCityLotteryAct,theNebraskaLotteryandRaffleAct,theNebraskaPickleCardLotteryAct,theNebraskaSmallLotteryandRaffleAct,theStateLotteryAct,oranyrulesorregulationsadoptedandpromulgatedpursuanttosuchacts;(b)Knowinglycaused,aided,abetted,orconspiredwithanothertocauseanypersontoviolateanyoftheprovisionsoftheNebraskaPickleCardLotteryActoranyrulesorregulationsadoptedandpromulgatedpursuanttotheact;(c)ObtainedalicensepursuanttotheNebraskaPickleCardLotteryActbyfraud,misrepresentation,orconcealment;(d)Wasconvictedof,forfeitedbonduponachargeof,orpleadedguiltyornolocontenderetoanyoffenseorcrime,whetherafelonyormisdemeanor,involvinganygamblingactivityorfraud,theft,willfulfailuretomakerequiredpaymentsorreports,orfilingfalsereportswithagovernmentalagencyatanylevel;(e)Wasconvictedof,forfeitedbonduponachargeof,orpleadedguiltyornolocontenderetoanyfelonyotherthanthosedescribedinsubdivision(d)ofthissubdivisionwithinthetenyearsprecedingthefilingoftheapplication;(f)Deniedthedepartmentoritsauthorizedrepresentatives,includingauthorizedlawenforcementagencies,accesstoanyplacewherepicklecardactivityrequiredtobelicensedundertheactisbeingconductedorfailedtoproduceforinspectionorauditanybook,record,document,oritemrequiredbylaw,rule,orregulation;(g)Madeamisrepresentationoforfailedtodiscloseamaterialfacttothedepartment;(h)Failedtopayanytaxesandadditionstotaxes,includingpenaltiesandinterest,requiredbytheNebraskaBingoAct,theNebraskaCountyandCityLotteryAct,theNebraskaLotteryandRaffleAct,ortheNebraskaPickleCardLotteryAct,oranyothertaxesimposedpursuanttotheNebraskaRevenueActof1967;(i)FailedtopayanadministrativefineleviedpursuanttotheNebraskaBingoAct,theNebraskaCountyandCityLotteryAct,theNebraskaLotteryandRaffleAct,or

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theNebraskaPickleCardLotteryAct;(j)Failedtodemonstrategoodcharacter,honesty,andintegrity;(k)Failedtodemonstrate,eitherindividuallyor,inthecaseofabusinessentityoranonprofitorganization,throughitsmanagers,employees,oragents,theability,experience,orfinancialresponsibilitynecessarytomaintaintheactivityforwhichthelicensewasissued;or(l)Wascitedandwhoseliquorlicensewassuspended,canceled,orrevokedbytheNebraskaLiquorControlCommissionforillegalgamblingactivitiesthatoccurredonorafterJuly20,2002,onoraboutapremiselicencedbythecommissionpursuanttotheNebraskaLiquorControlActortherulesandregulationsadoptedandpromulgatedtotheact;

(4)ToissueanorderrequiringalicenseeorotherpersontoceaseanddesistfromviolationsoftheNebraskaPickleCardLotteryActoranyrulesorregulationsadoptedandpromulgatedtosuchact.Theordershallgivereasonablenoticeoftherightsofthelicenseeorotherpersontorequestahearingandshallstatethereasonfortheentryoftheorder.Thenoticeofordershallbemailedorpersonallyserveduponthelicenseeorotherperson.Ifthenoticeoforderismailed,thedatethenoticeismailedshallbedeemedtobethedateofserviceofnoticetothelicenseeorotherperson.Arequestforahearingbythelicenseeorotherpersonshallbeinwritingandshallbefiledwiththedepartmentwithinthirtydaysaftertheserviceoftheceaseanddesistorder.Ifarequestforhearingisnotfiledwithinthethirty-dayperiod,theceaseanddesistordershallbecomepermanentattheexpirationofsuchperiod.AhearingshallbeheldnotlaterthanthirtydaysaftertherequestforthehearingisreceivedbytheTaxCommissioner,andwithintwentydaysafterthedateofthehearing,theTaxCommissionershallissueanordervacatingtheceaseanddesistorderormakingitpermanentasthefactsrequire.Allhearingsshallbeheldinaccordancewiththerulesandregulationsadoptedandpromulgatedbythedepartment.Ifthelicenseeorotherpersontowhomaceaseanddesistorderisissuedfailstoappearatthehearingafterbeingdulynotified,thelicenseeorotherpersonshallbedeemedindefaultandtheproceedingmaybedeterminedagainstthelicenseeorotherpersonuponconsiderationoftheceaseanddesistorder,theallegationsofwhichmaybedeemedtobetrue;

(5)Tolevyanadministrativefineonanindividual,partnership,limitedliabilitycompany,corporation,ororganizationforcause.Forpurposesofthissubdivision,causeshallincludeinstancesinwhichtheindividual,partnership,limitedliabilitycompany,corporation,ororganizationviolatedtheprovisions,requirements,conditions,limitations,ordutiesimposedbytheactoranyruleorregulationadoptedandpromulgatedpursuanttotheact.Indeterminingwhethertolevyanadministrativefineandtheamountofthefineifanyfineislevied,thedepartmentshalltakeintoconsiderationtheseriousnessoftheviolation,theintentoftheviolator,whethertheviolatorvoluntarilyreportedtheviolation,whethertheviolatorderivedfinancialgainasaresultoftheviolationandtheextentthereof,andwhethertheviolatorhashadpreviousviolationsoftheact,rules,orregulations.Afineleviedonaviolatorunderthissectionshallnotexceedonethousanddollarsforeachviolationoftheactoranyruleorregulationadoptedandpromulgatedpursuanttotheactplusthefinancialbenefitderivedbytheviolatorasaresultofeachviolation.Ifanadministrativefineislevied,thefineshallnotbepaidfrompicklecardlotterygrossproceedsofanorganizationandshallberemittedbytheviolatortothedepartmentwithinthirtydaysafterthedateoftheorderissuedbythedepartmentlevyingsuchfine;

(6)Toenterortoauthorizeanylawenforcementofficertoenteratanytimeuponanypremiseswherelotterybythesaleofpicklecardsactivityrequiredtobelicensedundertheactisbeingconductedtodeterminewhetheranyoftheprovisionsofsuchactoranyrulesorregulationsadoptedandpromulgatedundersuchacthavebeenorarebeingviolatedandatsuchtimetoexaminesuchpremises;

(7)Torequireperiodicreportsoflotterybythesaleofpicklecardsactivityfromlicensedmanufacturers,distributors,nonprofitorganizations,salesagents,picklecardoperators,andanyotherpersons,organizations,limitedliabilitycompanies,orcorporationsasthedepartmentdeemsnecessarytocarryouttheact.;

(8)Torequireannualregistrationofcoin-operatedandcurrency-operateddevicesusedfor thedispensingofpicklecards, toissueregistrationdecalsforsuchdevices,toprescribeallformsnecessaryfortheregistrationofsuchdevices,andtoimposeadministrativepenaltiesforfailuretoproperlyregistersuchdevices;

(9)Toexamineortocausetohaveexamined,byanyagentorrepresentativedesignatedbythedepartmentforsuchpurpose,anybooks,papers,records,ormemorandarelatingtotheconductoflotterybythesaleofpicklecardsofanylicensee,torequirebyadministrativeorderorsummonstheproductionofsuchdocumentsortheattendanceofanypersonhavingknowledgeinthepremises,totaketestimonyunderoath,andtorequireproofmaterialforitsinformation.Ifanysuchpersonwillfullyrefusestomakedocumentsavailableforexaminationbythedepartmentoritsagentorrepresentativeorwillfullyfailstoattendandtestify,thedepartmentmayapplytoajudgeofthedistrictcourtofthecountyinwhichsuchpersonresidesforanorderdirectingsuchpersontocomplywiththedepartment’srequest.Ifanydocumentsrequestedbythedepartmentareinthecustodyofacorporation,thecourtordermaybedirectedtoanyprincipalofficerofthecorporation.Ifthedocumentsrequestedbythedepartmentareinthecustodyofalimitedliabilitycompany,thecourtordermaybedirectedtoanymemberwhenmanagementisreservedtothemembersorotherwisetoanymanager.Anypersonwhofailsorrefusestoobeysuchacourtordershallbeguiltyofcontemptofcourt;

(10)Unlessspecificallyprovidedotherwise,tocompute,determine,assess,andcollecttheamountsrequiredtobepaidastaxesimposedbytheactinthesamemannerasprovidedforsalesandusetaxesintheNebraskaRevenueActof1967;

(11)TocollectlicenseapplicationandlicenserenewalapplicationfeesimposedbytheNebraskaPickleCardLotteryActandtoproratelicensefeesonanannualbasis.Thedepartmentshallestablishbyruleandregulationtheconditionsandcircumstancesunderwhichsuchfeesmaybeprorated;

(12)Toinspectpicklecardsandpicklecardunitsasprovidedinsection9-339;

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(13)Toconfiscate,seize,orsealpicklecards,picklecardunits,orcoin-operatedorcurrency-operatedpicklecarddispensingdevicespursuanttosection9-350;

(14)ToadoptandpromulgatesuchrulesandregulationsandprescribeallformsasarenecessarytocarryouttheNebraskaPickleCardLotteryAct;and

(15)Toemploystaff,includingauditorsandinspectors,asnecessarytocarryouttheact.Source: Laws1986,LB1027,§88;Laws1988,LB1232,§18;Laws1989,LB767,§31;Laws1991,LB427,§30;Laws1991,LB849,§48;Laws1993, LB138,§6;Laws1994,LB694,§70;Laws1995,LB344,§12;Laws1995,LB574,§9;Laws1997,LB248,§9;Laws2000,LB1086,§10; Laws2002,LB545,§27;Laws2002,LB1126,§2,Laws2012,LB727,§4.Operative date: April 12, 2012.Cross References: Nebraska Bingo Act,seesection9-201.Nebraska County and City Lottery Act, seesection9-601.Nebraska Lottery and Raffle Act,seesection9-401. Nebraska Revenue Act of 1967, see section 77-2701. Nebraska Small Lottery and Raffle Act, see section 9-501. State Lottery Act, see section 9-801.

9-322.01. Administrative fine; disposition. (1)AllmoneycollectedbythedepartmentasanadministrativefineshallbetransmittedonamonthlybasistotheStateTreasurerwhoshalldepositsuchmoneyinthepermanentschoolfund.

(2)Anyadministrativefineleviedundersection9-322andunpaidshallconstituteadebttotheStateofNebraskawhichmaybecollectedbylienforeclosure,orsuedforandrecoveredinanyproperformofaction,inthenameoftheStateofNebraska,inthedistrictcourtofthecountyinwhichtheviolatorresidesorownsproperty.

Source: Laws1988,LB1232,§19;Laws1994,LB694,§71.Operative date: October 1, 1994.

9-322.02. Denial of application; procedure.(1)Beforeanyapplicationisdeniedpursuanttosection9-322,thedepartmentshallnotifytheapplicantinwritingbymailofthedepartment’sintentiontodenytheapplicationandthereasonsforthedenial.Suchnoticeshallinformtheapplicantofhisorherrighttorequestanadministrativehearingforthepurposeofreconsiderationoftheintendeddenialoftheapplication.Thedatethenoticeismailedshallbedeemedtobethedateofserviceofnoticetotheapplicant.

(2)Arequestforahearingbytheapplicantshallbeinwritingandshallbefiledwiththedepartmentwithinthirtydaysaftertheserviceofnoticetotheapplicantofthedepartment’sintendeddenialoftheapplication.Ifarequestforhearingisnotfiledwithinthethirty-dayperiod,theapplicationdenialshallbecomefinalattheexpirationofsuchperiod.

(3)Ifarequestforhearingisfiledwithinthethirty-dayperiod,theTaxCommissionershallgranttheapplicantahearingandshall,atleasttendaysbeforethehearing,servenoticeupontheapplicantbymailofthetime,date,andplaceofthehearing.SuchproceedingsshallbeconsideredcontestedcasespursuanttotheAdministrativeProcedureAct.

Source: Laws1988,LB1232,§20;Laws2002,LB545,§28,Laws2012,LB727,§5.Operative date: April 12, 2012.Cross Reference: Administrative Procedure Act, see section 84-920.

9-322.03. RepealedSource: Laws 1991, LB 795, § 2, Laws 2007, LB 638, § 21.Effective date: September 1, 2007

9-323. Suspension of license; limitation; procedure. (1)TheTaxCommissionermaysuspendanylicenseissuedpursuanttotheNebraskaPickleCardLotteryActexceptalicenseissuedpursuanttosection9-326,exceptthatnoordertosuspendanylicenseshallbeissuedunlessthedepartmentdeterminesthatthelicenseeisnotoperatinginaccordancewiththepurposesandintentoftheNebraskaBingoAct,theNebraskaCountyandCityLotteryAct,theNebraskaLotteryandRaffleAct,theNebraskaPickleCardLotteryAct, theNebraskaSmallLotteryandRaffleAct, theStateLotteryAct,oranyrulesorregulationsadoptedandpromulgatedpursuanttosuchacts.TheTaxCommissionermaysuspendalicenseissuedpursuanttosection9-326afterahearinguponafindingbythedepartmentthatthelicenseeisnotoperatinginaccordancewiththepurposesandintentofsuchacts.

(2)Beforeanylicenseissuspendedpriortoahearing,noticeofanordertosuspendalicenseshallbemailedtoorpersonallyserveduponthelicenseeatleastfifteendaysbeforetheorderofsuspensiontakeseffect.

(3)Theorderofsuspensionmaybewithdrawnifthelicenseeprovidesthedepartmentwithevidencethatanypriorfindingsorviolationshavebeencorrectedandthatthelicenseeisnowinfullcompliance,whetherbeforeoraftertheeffectivedateoftheorderofsuspension.

(4)TheTaxCommissionermayissueanorderofsuspensionpursuanttosubsections(1)and(2)ofthissectionwhenanactionforsuspension,cancellation,orrevocationispending.TheTaxCommissionermayalsoissueanorderofsuspensionafterahearingforalimitedtimeofuptooneyearwithoutanactionforcancellationorrevocationpending.

(5)Thehearingforsuspension,cancellation,or revocationof the licenseshallbeheldwithin twentydaysafter thedate thesuspensiontakeseffect.Arequestbythelicenseetoholdthehearingaftertheendofthetwenty-dayperiodshallextendthesuspensionuntilthehearing.

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(6)Thedecisionofthedepartmentshallbemadewithintwentydaysaftertheconclusionofthehearing.Thesuspensionshallcontinueineffectuntilthedecisionisissued.Ifthedecisionisthatanorderofsuspension,revocation,orcancellationisnotappropriate,thesuspensionshallterminateimmediatelybyorderoftheTaxCommissioner.Ifthedecisionisanorderforthesuspension,revocation,orcancellationofthelicense,thesuspensionshallcontinuependinganappealofthedecisionofthedepartment.

(7)AnyperiodofsuspensionpriortotheissuanceofanorderofsuspensionissuedbytheTaxCommissionershallcounttowardthetotalamountoftimealicenseeshallbesuspendedfromgamingactivitiesundertheNebraskaPickleCardLotteryAct.Anyperiodofsuspensionpriortotheissuanceofanorderofcancellationshallnotreducetheperiodofthecancellation.Anyperiodofsuspensionaftertheissuanceoftheorderandduringanappealshallbecountedasapartoftheperiodofcancellation.

Source: Laws1986,LB1027,§89;Laws1988,LB1232,§21;Laws1991,LB427,§31;Laws1995,LB344,§13.Effective date: September 9, 1995.

9-324. Hearing; required; when; notice.Before theadoption, amendment,or repealof any ruleor regulation, the suspension,revocation,orcancellationofanylicensepursuanttosection9-322,orthelevyingofanadministrativefinepursuanttosection9-322,thedepartmentshallsetthematterforhearing.Suchsuspension,revocation,orcancellationproceedingsorproceedingstolevyanadministrativefineshallbecontestedcasespursuanttotheAdministrativeProcedureAct.

Atleasttendaysbeforethehearing,thedepartmentshall(1)inthecaseofsuspension,revocation,orcancellationproceedingsorproceedingstolevyanadministrativefine,servenoticeuponthelicenseeorviolatorbypersonalserviceormailofthetime,date,andplaceofanyhearingor(2)inthecaseofadoption,amendment,orrepealofanyruleorregulation,issueapublicnoticeofthetime,date,andplaceofsuchhearing.

ThissectionshallnotapplytoanorderofsuspensionbytheTaxCommissionerpriortoahearingasprovidedinsection9-323.Source: Laws1986,LB1027,§90;Laws1988,LB1232,§22;Laws1991,LB427,§32;Laws1994,LB694,§72;Laws1995,LB344,§14;Laws2012, LB 727, § 6.Effective date: April 12, 2012.Cross Reference: Administrative Procedure Act, see section 84-920.

9-325. Proceeding before department; service; security; appeal. (1)Acopyof theorderordecisionof thedepartment inanyproceedingbeforeit,certifiedunderthesealofthedepartment,shallbeserveduponeachpartyofrecordtotheproceedingbeforethedepartment.Serviceuponanyattorneyofrecordforanysuchpartyshallbedeemedtobeserviceuponsuchparty.Eachpartyappearingbeforethedepartmentshallenterhisorherappearanceandindicatetothedepartmenthisorheraddressfortheserviceofacopyofanyorder,decision,ornotice.Themailingofanycopyofanyorderordecisionorofanynoticeintheproceeding,tosuchpartyatsuchaddress,shallbedeemedtobeserviceuponsuchparty.

(2)Atthetimeofmakinganappearancebeforethedepartment,eachpartyshalldepositincashorfurnishasufficientsecurityforcostsinanamountthedepartmentdeemsadequatetocoverallcostsliabletoaccrue,includingcostsfor(a)reportingthetestimonytobeadduced,(b)makingupacompletetranscriptofthehearing,and(c)extendingreporter’soriginalnotesintypewriting.

(3)Anydecisionofthedepartmentinanyproceedingbeforeitmaybeappealed,andtheappealshallbeinaccordancewiththeAdministrativeProcedureAct.

Source: Laws1986,LB1027,§91;Laws1988,LB352,§15;Laws1988,LB1232,§23.Cross Reference: Administrative Procedure Act, see § 84-920.

9-326. License; qualified applicants. (1)Anynonprofitorganizationholdingacertificateofexemptionundersection501(c)(3), (c)(4),(c)(5),(c)(7),(c)(8),(c)(10),or(c)(19)oftheInternalRevenueCodeoranyvolunteerfirecompanyorvolunteerfirst-aid,rescue,ambulance,oremergencysquadmayapplyforalicensetoconductalotterybythesaleofpicklecards.

(2)Priortoapplyingforanylicense,anorganizationshall:(a)Beincorporatedinthisstateasanot-for-profitcorporationororganizedinthisstateasareligiousornot-for-profitorganization.Forpurposesofthissubsection,adomesticatedforeigncorporationshallnotbeconsideredincorporatedinthisstateasanot-for-profitcorporation;(b)Conductactivitieswithinthisstateinadditiontotheconductoflotterybythesaleofpicklecards;(c)Beauthorizedbyitsconstitution,articles,charter,orbylawstofurtherinthisstatealawfulpurpose;(d)Operatewithoutprofittoitsmembers,andnopartofthenetearningsofsuchorganizationshallinuretothebenefitofanyprivateshareholderorindividual;and(e)Withtheexceptionofavolunteerfirecompany,avolunteerfirst-aid,rescue,ambulance,oremergencysquad,oranot-for-profitcorporationwhoseprimarypurposeistosupportavolunteerfirecompany,first-aidsquad,rescuesquad,ambulancesquad,oremergencysquad,havebeeninexistenceinthisstateforfiveyearsimmediatelyprecedingitsapplicationforalicenseandhavehadduringthatfive-yearperiodabonafidemembershipactivelyengagedinfurtheringalawfulpurpose.Asocietydefinedinsection21-608whichischarteredinNebraskaunderastate,grand,supreme,national,orothergoverningbodymayusethecharterdateofitsparentorganizationtosatisfysuchfive-yearrequirement.

Source: Laws1986,LB1027,§92;Laws1988,LB1232,§24;Laws1989,LB767,§32;Laws1996,LB1277,§5;Laws2002,LB545,§29;Laws2012, LB979, § 1.Effective date: July 19, 2012.

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9-327. License; application; contents; enumerated; duty to keep current. (1)Eachapplicantforalicensetoconductalotterybythesaleofpicklecardsshallfilewiththedepartmentanapplicationonaformprescribedbythedepartment.

(2)Eachapplicationshallinclude:(a)Thenameandaddressoftheapplicant;(b)Sufficientfactsrelatingtotheincorporationororganizationoftheapplicanttoenablethedepartmenttodetermineiftheapplicantiseligibleforalicenseundersection9-326;(c)Thenameandaddressofeachofficeroftheapplicantorganization;(d)Thename,address,socialsecuritynumber,dateofbirth,andyearsofmembershipofabonafideandactivememberoftheapplicantorganizationtobelicensedasautilization-of-fundsmember.Suchpersonshallhavebeenanactiveandbonafidememberoftheapplicantorganizationforatleastoneyearprecedingthedatetheapplicationisfiledwiththedepartmentunlesstheapplicantorganizationcanprovideevidencethattheone-yearrequirementwouldimposeanunduehardshipontheorganization.SuchpersonshallsignaswornstatementindicatingthatheorsheagreestocomplywithallprovisionsoftheNebraskaPickleCardLotteryActandallrulesandregulationsadoptedpursuanttotheact,thatnocommission,fee,rent,salary,profits,compensation,orrecompensewillbepaidtoanypersonororganization,exceptpaymentsauthorizedbytheNebraskaPickleCardLotteryAct,andthatallnetprofitswillbespentonlyforlawfulpurposes.Thedepartmentmayprescribeaseparateapplicationforsuchlicense;(e)Arosterofmembersifthedepartmentdeemsitnecessaryandproper;and(f)Otherinformationwhichthedepartmentdeemsnecessary.

(3)Theinformationrequiredbythissectionshallbekeptcurrent.Anorganizationshallnotifythedepartmentwithinthirtydaysifanyinformationintheapplicationisnolongercorrectandshallsupplythecorrectinformation.

(4)Thedepartmentmayprescribeaseparateapplicationformforrenewalpurposes.Source: Laws1986,LB1027,§93;Laws1988,LB1232,§25;Laws1994,LB694,§73.Operative date: October 1, 1994.

9-328. Licenses; renewal; application; requirements; classes; fees. (1)Alllicensestoconductalotterybythesaleofpicklecardsandlicensesissuedtoutilization-of-fundsmembersshallexpireasprovidedinthissectionandmayberenewedbiennially.Anapplicationforlicenserenewalshallbesubmittedtothedepartmentatleastforty-fivedayspriortotheexpirationdateofthelicenseunlesssuchapplicationonlypertainstotheconductofalotterybythesaleofpicklecardsataspecialfunctionasprovidedinsection9-345.01.

(2)Alicensetoconductalotterybythesaleofpicklecardsissuedtoanonprofitorganizationholdingacertificateofexemptionundersection501(c)(3)or(c)(4)oftheInternalRevenueCodeandanylicenseissuedtoautilization-of-fundsmemberforsuchnonprofitorganizationshallexpireonSeptember30ofeachodd-numberedyearoronsuchotherdateasthedepartmentmayprescribebyruleandregulation.

(3)Alicensetoconductalotterybythesaleofpicklecardsissuedtoanonprofitorganizationholdingacertificateofexemptionundersection501(c)(5),(c)(7),(c)(8),(c)(10),or(c)(19)oftheInternalRevenueCodeoranyvolunteerfirecompanyorvolunteerfirst-aid, rescue,ambulance,oremergencysquadandany license issued toautilization-of-fundsmemberforsuchnonprofitorganizationorvolunteerfirecompanyorvolunteerfirst-aid,rescue,ambulance,oremergencysquadshallexpireonSeptember30ofeacheven-numberedyearoronsuchotherdateasthedepartmentmayprescribebyruleandregulation.

(4)Thedepartmentshallestablishclassesoflicensesforlicensedorganizationsbaseduponthemannerinwhichthelicensedorganizationintendstosellpicklecards.Theclassesshallinclude:(a)ClassIlicenseswhichshallincludeorganizationswhichsellindividualpicklecardsonlyattheorganization’sdesignatedpremisesandattheorganization’slicensedregularlyscheduledbingooccasionspursuanttotheNebraskaBingoAct;and(b)ClassIIlicenseswhichshallincludeorganizationswhichsellthepicklecardsonthepremisesofoneormorelicensedpicklecardoperators.

AlicensedorganizationholdingaClassIIlicenseshallberequiredtomarketanddeliveritspicklecardsbyalicensedsalesagent. (5)AbienniallicensefeeoftwohundreddollarsshallbechargedforeachClassIlicense,threehundreddollarsforeachClassII

license,andfortydollarsforalicenseforeachutilization-of-fundsmember. (6)Thedepartmentshalladoptandpromulgaterulesandregulationsestablishingreportingrequirementsforeachclassoflicense.Source: Laws1986,LB1027,§94;Laws1988,LB1232,§26;Laws1989,LB767,§33;Laws1991,LB427,§33;Laws1994,LB694,§74;Laws2000, LB1086,§11;Laws2002,LB545,§30,Laws2007,LB638,§9.Effective date: September 1, 2007.Cross Reference: Nebraska Bingo Act, section 9-201.

9-329. Sales agent; license required; application; contents; fee; temporary license. (1)Unlessotherwiseauthorizedbythedepartment,nopersonshallmarket,sell,ordeliveranypicklecardunittoanypicklecardoperatorwithoutfirstobtainingasalesagentlicense.

(2)Anypersonwishingtooperateasasalesagentinthisstateshallfileanapplicationwiththedepartmentforalicenseonaformprescribedbythedepartment.Eachapplicationforalicenseshallinclude(a)thename,address,andsocialsecuritynumberofthepersonapplyingforthelicense,(b)thenameandstateidentificationnumberofthelicensedorganizationforwhichanypicklecardunitsaretobemarketedorsoldbytheapplicant,and(c)suchotherinformationwhichthedepartmentdeemsnecessary.

(3)Astatementsignedbythepersonlicensedasautilization-of-fundsmembersignifyingthatsuchlicensedorganizationapprovestheapplicanttoactasasalesagentonbehalfofsuchorganizationshallaccompanyeachsalesagent’sapplicationforalicense.Nopersonlicensedasautilization-of-fundsmembershallbelicensedasasalesagent.

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(4)(a)Abiennialfeeofonehundreddollarsshallbechargedforeachlicenseissuedpursuanttothissection.ThedepartmentshallremittheproceedsfromsuchfeetotheStateTreasurerforcredittotheCharitableGamingOperationsFund.Suchlicensesshallexpireasprescribedinthissectionandmayberenewedbiennially.Anapplicationforlicenserenewalshallbesubmittedtothedepartmentatleastforty-fivedayspriortotheexpirationdateofthelicense.(b)Asalesagentlicenseissuedtoapersononbehalfofanonprofitorganizationholdingacertificateofexemptionundersection501(c)(3)or(c)(4)oftheInternalRevenueCodeshallexpireonSeptember30ofeachodd-numberedyearoronsuchotherdateasthedepartmentmayprescribebyruleandregulation.Asalesagentlicenseissuedtoapersononbehalfofanonprofitorganizationholdingacertificateofexemptionundersection(501)(c)(5),(c)(7),(c)(8),(c)(10),or(c)(19)oftheInternalRevenueCodeoranyvolunteerfirecompanyorvolunteerfirst-aid,rescue,ambulance,oremergencysquadshallexpireonSeptember30ofeacheven-numberedyearoronsuchotherdateasthedepartmentmayprescribebyruleandregulation.

(5)Theinformationrequiredbythissectionshallbekeptcurrent.Asalesagentshallnotifythedepartmentwithinthirtydaysifanyinformationintheapplicationisnolongercorrectandshallsupplythecorrectinformation.

(6)Thedepartmentmayprescribeaseparateapplicationformforrenewalpurposes. (7)Thedepartmentmayissueatemporarylicensependingreceiptofadditionalinformationorfurtherinquiry.Source: Laws1985,LB408,§18;R.S.Supp.,1985,§9-143.01;Laws1986,LB1027,§95;Laws1988,LB1232,§31;Laws1991,LB427,§34;Laws1994, LB694,§75;Laws2000,LB1086,§12;Laws2002,LB545,§31,Laws2007,LB638,§10.Effective date: September 1, 2007.

9-329.01. Sales agent; license applicant; qualifications; licensee; limitations.(1)Priortoapplyingforalicenseasasalesagentforalicensedorganization,theapplicantshallhavebeenanactiveandbonafidememberofthelicensedorganizationforoneyearprecedingthedatetheapplicationisfiledwiththedepartment.

(2)Nopersonapplyingforalicenseunderthissectionshallholdalicenseasasalesagentformorethanonelicensedorganization.Thissubsectionshallnotprohibitalicensedsalesagentfromapplyingforalicensetorepresentanotherlicensedorganizationasasalesagentifheorshehasceasedbeingasalesagentforandwillnotcontinuetomarketpicklecardunitsonbehalfoftheorganizationforwhichheorsheiscurrentlylicensedandhasobtainedawrittenreleaseofanylegalobligationsheorshehastosuchlicensedorganization.Suchreleaseshallbesignedbyapersonlicensedasautilization-of-fundsmemberandanofficerofthelicensedorganizationandshallstatethatthesalesagenthassatisfiedalllegalobligationsheorshehastothelicensedorganizationinconnectionwiththelotterybythesaleofpicklecards.Whenapplicable,acopyofthewrittenreleaseshallaccompanyanyapplicationforalicensetobecomeasalesagent.

(3)AnysalesagentlicensedundertheNebraskaPickleCardLotteryActshallnotbeconnectedwithorinterestedin,directlyorindirectly,anyperson,partnership,limitedliabilitycompany,firm,corporation,orotherpartylicensedasadistributor,manufacturer,orpicklecardoperatorundersection9-329.03,9-330,or9-332and,unlesssuchsalesagentdoesnotdirectlyorindirectlyreceivepaymentofanycommission,salary,orfeeforthesale,marketing,ordeliveryofpicklecardsonbehalfofthelicensedorganizationoranyotherserviceonbehalfofthelicensedorganization,shallnotbeadirector,manager,trustee,ormemberofanygoverningcommittee,board,orbodyofthelicensedorganizationonbehalfofwhichthesalesagentsellspicklecardunits.

Source: Laws1988,LB1232,§27;Laws1993,LB121,§110;Laws1994,LB694,§76.Operative date: October 1, 1994.

9-329.02. Pickle card operator; license required; application; contents; fee; restrictions; authorization required; equipment requirements. (1)Apicklecardoperatorshallnotbeeligibletosellindividualpicklecardsasopportunitiestoparticipateinalotterybythesaleofpicklecardswithoutfirstobtainingalicense.

(2)Anysoleproprietorship,partnership,limitedliabilitycompany,orcorporationwishingtooperateasapicklecardoperatorinthisstateshallfileanapplicationwiththedepartmentforalicenseonaformprescribedbythedepartment.Eachapplicationforalicenseshallinclude(a)thename,address,andstateidentificationnumberofthesoleproprietorship,partnership,limitedliabilitycompany,orcorporationapplyingforthelicense,(b)adescriptionofthepremisesonwhichthepicklecardswillbesoldorofferedforsale,(c)iftheapplicantisanindividual,theapplicant’ssocialsecuritynumber,and(d)suchotherinformationwhichthedepartmentdeemsnecessary.Theinformationrequiredbythissubsectionshallbekeptcurrent.Apicklecardoperatorshallnotifythedepartmentwithinthirtydaysifanyinformationintheapplicationisnolongercorrectandshallsupplythecorrectinformation.

(3)Abiennialfeeofonehundreddollarsshallbechargedforeachlicenseissuedpursuanttothissectionandshallbepaidforbytheapplicant.Alicensedorganizationshallnotpaytherequiredlicensingfeesofapicklecardoperatorasaninducementforthepicklecardoperatortosellindividualpicklecardsonitsbehalf.SuchlicensesshallexpireonSeptember30ofeachodd-numberedyearoronsuchotherdateasthedepartmentmayprescribebyruleandregulationandmayberenewedbiennially.ThedepartmentshallremittheproceedsfromsuchlicensefeestotheStateTreasurerforcredittotheCharitableGamingOperationsFund.Anapplicationforlicenserenewalshallbesubmittedtothedepartmentatleastsixtydayspriortotheexpirationdateofthelicense.

(4)Onelicenseissuedtoanysoleproprietorship,partnership,limitedliabilitycompany,orcorporationunderthissectionasapicklecardoperatorshallcoverthesoleproprietorship,partnership,limitedliabilitycompany,orcorporationandtheemployeesofthelicensedpicklecardoperator.Anylicenseissuedpursuanttothissectionshallbevalidonlyforthesoleproprietorship,

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partnership,limitedliabilitycompany,orcorporationinthenameofwhichitwasissuedandshallallowthesaleofindividualpicklecardsonlyonthepremisesdescribedinthepicklecardoperator’sapplicationforalicense.Apicklecardoperator’slicensemaynotbetransferredunderanycircumstancesincludingchangeofownership.

(5)Thedepartmentmayprescribeaseparateapplicationformforrenewalpurposes. (6)Alicensedpicklecardoperatorshallnotsellindividualpicklecardsonbehalfofalicensedorganizationuntilanauthorization

hasbeenobtainedfromthedepartmentbythelicensedorganization.Thelicensedorganizationshallfileanapplicationwiththedepartmentforsuchauthorizationonaformprescribedbythedepartment.Eachapplicationforanauthorizationshallinclude(a)thename,address,andstateidentificationnumberofthelicensedpicklecardoperatorand(b)suchotherinformationwhichthedepartmentdeemsnecessary.Theapplicationshallincludeastatementsignedbyapersonlicensedasautilization-of-fundsmembersignifyingthatsuchlicensedorganizationapprovesthepicklecardoperatortosellindividualpicklecardsonbehalfofsuchorganization.

(7)Apicklecardoperatormaysell individualpicklecardsonbehalfofmore thanone licensedorganization.Each licensedorganizationforwhichthepicklecardoperatordesirestosellindividualpicklecardsshallobtaintheauthorizationdescribedinsubsection(6)ofthissection.

(8)Apicklecardoperatorwhosellsindividualpicklecardsthroughacoin-operatedorcurrency-operateddispensingdeviceshallpurchase,lease,orrentitsownequipment.Ifsuchequipmentisobtainedfromalicensedorganizationordistributor,itshallbepurchased,leased,orrentedataratenotlessthanfairmarketvalue.Alicensedorganizationordistributorshallnotprovidesuchequipmenttoapicklecardoperatorfreeofchargeorataratelessthanfairmarketvalueasaninducementforthepicklecardoperatortosellalicensedorganization’sindividualpicklecards.Thedepartmentmayrequirealicensedorganization,distributor,orpicklecardoperatortoprovidesuchdocumentationasthedepartmentdeemsnecessarytoverifythatapicklecardoperatorhaspurchased,leased,orrentedtheequipmentforaratenotlessthanfairmarketvalue.

(9)Nopicklecardoperatorshallgeneraterevenuefromthesaleofindividualpicklecardswhichexceedstherevenuegeneratedfromotherretailsalesonanannualbasis.Forpurposesofthissubsection,retailsalesshallnotincluderevenuegeneratedfromothercharitablegamingactivitiesauthorizedbyChapter9.

Source: Laws1988,LB1232,§33;Laws1989,LB767,§34;Laws1991,LB427,§35;Laws1993,LB121,§111;Laws1994,LB694,§77;Laws1995, LB344§15,Laws1997,LB752,§65;Laws2000,LB1086,§13,Laws2007,LB638,§11.Effective date: September 1, 2007.

9-329.03. Pickle card operator; qualified applicant; licensee; limitations.(1)Anysoleproprietorship,partnership,limitedliabilitycompany,orcorporation,whichholdsaretaillicenseforthesaleofalcoholicliquorforconsumptiononthepremisesissuedbytheNebraskaLiquorControlCommissionpursuanttotheNebraskaLiquorControlActorwhichholdsaretaillicenseforthesaleofalcoholicliquorforconsumptionoffthepremises,mayapplyforapicklecardoperator’slicensetosellindividualpicklecardsasopportunitiestoparticipateinalotterybythesaleofpicklecards.

(2)ApicklecardoperatorlicensedundertheNebraskaPickleCardLotteryActshallnotbeconnectedwithorinterestedin,directlyorindirectly,anyperson,partnership,limitedliabilitycompany,firm,corporation,orotherpartylicensedasadistributorormanufacturerundersection9-330or9-332.

(3)Asoleproprietor,partnerinapartnership,memberinalimitedliabilitycompany,orofficerordirectorofacorporationlicensedasapicklecardoperatorshallnotbelicensedasasalesagent.

(4)Asoleproprietor,partnerinapartnership,memberinalimitedliabilitycompany,orofficerordirectorofacorporationlicensedasapicklecardoperatorshallnotbeadirector,manager,trustee,ormemberofanygoverningcommittee,board,orbodyofthelicensedorganizationonbehalfofwhichthepicklecardoperatorsellsindividualpicklecards.

Source: Laws1988,LB1232,§32;Laws1991,LB795,§3;Laws1993,LB121,§112;Laws1997,LB248,§10;Laws2004,LB485,§1.Operative date: May 1, 2005.Cross Reference: Nebraska Liquor Control Act, see section 53-101.

9-329.04. Repealed. Laws 1997, LB 248, § 39. (Operative date October 1, 1997.)

9-330. Distributor’s license; application; requirements; fee; renewal.Anyapplicantforadistributor’slicense,includingrenewalthereof,shallfileanapplicationwiththedepartmentonaformprescribedbythedepartment.Eachapplicationshallbeaccompaniedbyabienniallicensefeeofthreethousandfiftydollars.Ataminimum,theapplicationshallincludethenameandaddressoftheapplicant,includingallshareholderswhoowntenpercentormoreoftheoutstandingstockiftheapplicantisacorporation,thelocationofitsofficeorbusiness,acurrentlist,ifrequested,ofthoseorganizationswithinthestatetowhomtheapplicantissellingpicklecardunits,and,iftheapplicantisanindividual,theapplicant’ssocialsecuritynumber.AllapplicationsshallincludeaswornstatementbytheapplicantortheappropriateofficerthereofthattheapplicantwillcomplywithallprovisionsoftheNebraskaPickleCardLotteryActandallrulesandregulationsadoptedandpromulgatedundersuchact.

Theprincipalofficeofanapplicantforadistributor’slicenseorofalicenseddistributorshallbelocatedinNebraska.

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Nopersonshallbeissuedadistributor’slicensesifsuchpersonisnotdoingbusinessorauthorizedtodobusinessinthisstate. Distributors’licensesshallexpireonSeptember30ofeveryodd-numberedyearorsuchotherdateasthedepartmentmayprescribe

byruleorregulation.Distributors’licensesmayberenewedbiennially.Anapplicationforlicenserenewalshallbesubmittedtothedepartmentatleastforty-fivedayspriortotheexpirationofthelicense.

Source: Laws1986,LB1027,§96;Laws1991,LB427,§36;Laws1994,LB694,§78;Laws1997,LB248,§11;Laws1997,LB752,§66.Note: TheRevisorofStatuteshaspursuanttosection 49-769 correlated LB 248, section 11, with LB 752, section66,toreflectallamendments.Note: ThechangesmadebyLB752becameeffectiveSeptember13,1997.ThechangesmadebyLB248becameoperativeOctober1,1997.

9-331. Distributor; employee or spouse; participation in gambling; restrictions. (1)Noperson,exceptadistributoroperatingpursuanttotheNebraskaPickleCardLotteryAct,shallsellordistributeanypicklecardunitstoanylicensedorganization.

(2)NodistributorshallholdalicensetoconductalotterybythesaleofpicklecardsoranyotherkindofgamblingactivitywhichisauthorizedorregulatedunderChapter9oralicensetoactasasalesagent,picklecardoperator,ormanufacturerofpicklecardsorpicklecardunitsexceptasprovidedinsections9-255.07and9-632.

(3)Ifadistributordeliversanypicklecardunit,heorsheshalldeliversuchunitonlytoalicensedutilization-of-fundsmemberforpicklecards,alicensedsalesagent,alicensedgamingmanager,abingochairpersondesignatedbyanorganizationlicensedtoconductbingopursuanttotheNebraskaBingoAct,orapersonwhoservesasamanagerforalicensedorganizationwhichisexemptundersection501(c)(8),(c)(10),or(c)(19)oftheInternalRevenueCodeandshallnotdeliveranypicklecardunittoanyotherperson,includingapicklecardoperator.

(4)Nodistributorshallofferoragreetoofferanythingofvaluetoanypersoninexchangeforanagreementorcommitmentbysuchpersontoexclusivelysellpicklecardssoldbysuchdistributor.Nothinginthissectionshallprohibitalicensedorganizationorpicklecardoperatorfromexclusivelysellingpicklecardssoldbyasingledistributor.Nolicensedorganizationorpicklecardoperatorshallacceptoragreetoacceptanythingofvaluefromadistributorinexchangeforanagreementorcommitmentbysuchlicensedorganizationorpicklecardoperatortoexclusivelysellpicklecardssoldbysuchdistributor.

(5)NodistributororemployeeorspouseofanydistributorshallparticipateintheconductoroperationofanylotterybythesaleofpicklecardsoranyotherkindofgamblingactivitywhichisauthorizedorregulatedunderChapter9excepttotheexclusiveextentofhisorherstatutorydutiesasalicenseddistributorandasprovidedinsections9-255.07and9-632.Nodistributororemployeeorspouseofanydistributorshallhaveasubstantialinterestinanotherdistributor,amanufacturer,amanufacturer-distributorasdefinedinsection9-616otherthanitself,oralicensedorganizationoranyotherlicenseeregulatedunderChapter9.Membershipinanyorganizationshallnotbedeemedaviolationofthissection.

(6)Adistributorshallpurchaseorotherwiseobtainpicklecardunitsonlyfromalicensedmanufacturerandshallpayforsuchunitsbycheckwithinthirtydaysofdelivery.

Source: Laws1986,LB1027,§97;Laws1988,LB1232,§34;Laws1989,LB767,§35;Laws1994,LB694,§79;Laws1997,LB248,§12;Laws2002, LB 545, § 32.Operative date: July 20, 2002.Cross Reference: Nebraska Bingo Act, see section 9-201.

9-332. Manufacturer of pickle cards; license required; application; fee; change in information; renewal. Amanufacturershallobtainalicensefromthedepartmentpriortomanufacturingorsellingorsupplyingtoanylicenseddistributorinthisstateanypicklecardsorpicklecardunitsorengaginginanyinterstateactivitiesrelatingtosuchpicklecardsorpicklecardunitsexceptthatnothinginthissectionshallprohibitamanufacturerfrommarketing,selling,orotherwiseprovidingpicklecardsorpicklecardunitstoafederallyrecognizedIndiantribeforuseinaClassIIgamingactivityauthorizedbythefederalIndianGamingRegulatoryAct.Theapplicantshallincludewiththeapplicationformprescribedbythedepartmentabienniallicensefeeofthreethousandfiftydollars,aswornstatementbytheapplicantorappropriateofficeroftheapplicantthattheapplicantwillcomplywithallprovisionsoftheNebraskaPickleCardLotteryActandallrulesandregulationsadoptedandpromulgatedpursuanttotheact,andsuchotherinformationasthedepartmentdeemsnecessary.Iftheapplicantisanindividual,theapplicationshallincludetheapplicant’ssocialsecuritynumber.

Theapplicantshallnotifythedepartmentwithinthirtydaysofanychangeintheinformationsubmittedonorwiththeapplicationform.TheapplicantshallcomplywithallapplicablelawsoftheUnitedStatesandtheStateofNebraskaandallapplicablerulesandregulationsofthedepartment.

Manufacturers’licensesshallexpireonSeptember30ofeveryodd-numberedyearorsuchotherdateasthedepartmentmayprescribebyruleandregulation.Manufacturers’licensesmayberenewedbiennially.Anapplicationforlicenserenewalshallbesubmittedtothedepartmentatleastforty-fivedayspriortotheexpirationdateofthelicense.

Source: Laws1985,LB408,§19;R.S.Supp.,1985,§9-143.02;Laws1986,LB1027,§98;Laws1989,LB767,§36;Laws1991,LB427,§37;Laws1994, LB694,§80;Laws1997,LB248,§13;Laws1997,LB752,§67.Note: TheRevisorofStatuteshaspursuanttosection 49-769 correlated LB 248, section 13, with LB 752, section67,toreflectallamendments.Note: ThechangesmadebyLB752becameeffectiveSeptember13,1997.ThechangesmadebyLB248becameoperativeOctober1,1997.

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9-332.01. Manufacturer; premarketing activities; approval required. Eachmanufacturershallreceivedepartmentalapprovalpriortosellinginthisstateanytypeofpicklecard,picklecardunit,punchboard,orothersimilarcard,board,orticketincludedinsection9-315whetherreferredtobyanyothernameintendedforresaleinNebraska.Approvalbythedepartmentshallbebasedupon,butnotlimitedto,themanufacture,assembly,andpackagingofpicklecardsorpicklecardunitsandanyotherspecificationsimposedbytheNebraskaPickleCardLotteryActoranyruleorregulationadoptedandpromulgatedpursuanttotheact.

Source: Laws1988,LB1232,§30;Laws1996,LB1277,§6.Effective date: July 19, 1996.

9-333. Manufacturer; records. Eachmanufacturershallkeepandmaintainacompletesetofrecordsdetailingthemanufacturer’spicklecardactivities,includingthenameandstateidentificationnumberofeachdistributorpurchasingpicklecardunits,thequantityandtypeofeachpicklecardunitsold,andanyotherinformationconcerningpicklecardunitswhichthedepartmentdeemsnecessary.Suchrecordsshallbemadeavailabletothedepartmentuponrequest.Thedepartmentmayrequirebyruleandregulationperiodicreportingfromamanufacturerrelativetoitspicklecardactivities.

Source: Laws1985,LB408,§26;R.S.Supp.,1985,§9-143.05;Laws1986,LB1027,§99;Laws1988,LB1232,§35;Laws1997,LB248,§14.Operative date:October1,1997.

9-334. Nonresident manufacturer; designated agent for service of process. Eachmanufacturersellingpicklecardsandpicklecardunitsinthisstatethatisnotaresidentorcorporationshalldesignateanaturalpersonwhoisaresidentofandlivinginthisstateandisnineteenyearsofageorolderasaresidentagentforthepurposeofreceiptandacceptanceofserviceofprocessandothercommunicationsonbehalfofthemanufacturer.Thename,businessaddresswhereserviceofprocessanddeliveryofmailcanbemade,andhomeaddressofsuchagentshallbefiledwiththedepartment.

Source: Laws1985,LB408,§21;R.S.Supp.,1985,§9-143.06;Laws1986,LB1027,§100;Laws1994,LB694,§81.Operative date: October 1, 1994.

9-335. Manufacturer; employee or spouse; restriction on activities. NomanufacturershallbelicensedtoconductanyotheractivityundertheNebraskaPickleCardLotteryAct.NomanufacturershallholdalicensetoconductanyotherkindofgamblingactivitywhichisauthorizedorregulatedunderChapter9exceptasprovidedinsections9-255.09and9-632.NomanufactureroremployeeorspouseofanymanufacturershallparticipateintheconductoroperationofanylotterybythesaleofpicklecardsoranyotherkindofgamblingactivitywhichisauthorizedorregulatedunderChapter9excepttotheexclusiveextentofhisorherstatutorydutiesasalicensedmanufactureroremployeethereof,asalotterycontractorpursuanttotheStateLotteryAct,andasprovidedinsections9-255.09and9-632.Nomanufactureroremployeeorspouseofanymanufacturershallhaveasubstantialinterestinanyothermanufacturer,anydistributor,anymanufacturer-distributorasdefinedinsection9-616otherthanitself,oranylicensedorganizationoranyotherlicenseeregulatedunderChapter9.

Source: Laws1985,LB408,§27;R.S.Supp.,1985,§9-143.03;Laws1986,LB1027,§101;Laws1989,LB767,§37;Laws1994,LB694,§82.Operative date: October 1, 1994.Cross Reference: State Lottery Act, see section 9-801.

9-336. Pickle card or pickle card unit; serial number required; manufacturer; duties. Eachmanufacturerofpicklecardsorpicklecardunitsshallassignaserialnumbertoeachunitofpicklecardsheorshemanufacturesandplacesuchnumberoneachflarecardsuppliedbysuchmanufacturerandoneachpicklecardintheunit.Nomanufacturershallsellorfurnishtoanypersonaunitofpicklecardswiththesameserialnumberasaunitwhichsuchmanufacturerhaspreviouslydistributedinthisoranyotherstatewithinthethreeyearspriortosuchsaleorfurnishing.

Source: Laws1985,LB408,§25;R.S.Supp.,1985,§9-186.03;Laws1986,LB1027,§102;Laws1994,LB694,§83.Operative date: October 1, 1994.

9-337. Pickle cards; construction standards. (1)Picklecardsshallbeconstructedsothatitisimpossibletodeterminethecoveredorconcealednumber,letter,symbol,configuration,orcombinationthereofonthepicklecarduntilithasbeendispensedtoandopenedbytheplayer,byanymethodordevice,including,butnotlimitedto,theuseofamarking,varianceinsize,varianceinpaperfiber,orlight.

(2)Allpicklecardsshallbeconstructedtoensurethat,whenofferedforsaletothepublic,thepicklecardisvirtuallyopaqueandfreeofsecuritydefectssothatwinningpicklecardscannotbedetermined,priortobeingopened,throughtheuseofhigh-intensitylightsoranyothermethod.

(3)Allpicklecardsshallbeconstructedtoconforminallotherrespects to theprovisionsandspecificationsimposedbytheNebraskaPickleCardLotteryActorbyruleorregulationastothemanufacture,assembly,orpackagingofpicklecardsorpicklecardunits.

Source: Laws1985,LB408,§23;R.S.Supp.,1985,§9-186.01;Laws1986,LB1027,§103.

9-338. Pickle card or pickle card unit; restrictions on manufacturer; contraband. (1)Nomanufacturerorrepresentativethereof,withknowledgeorincircumstancesunderwhichheorshereasonablyshouldhaveknown,shallmanufacture,possess,display,sell,orotherwisefurnishtoanypersonanypicklecardorpicklecardunit:(a)Inwhichthewinningtabortabshavenotbeen

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completelyandrandomlydistributedandmixedamongallothertabsinaseries;(b)Inwhichthelocationorapproximatelocationofanyofthewinningtabortabscanbedeterminedinadvanceofopeningthetabortabsinanymannerorbyanydevice,including,butnotlimitedto,anypatterninthemanufacture,assembly,orpackagingofthetabsorpicklecardsbythemanufacturer,byanymarkingsonthetabsorcontainer,orbytheuseofalight;(c)Whichoffersbothachanceforaninstantprizeandapossiblechancetoparticipateinasubsequentlotteryactivity,exceptthatpicklecardunits(i)mayutilizeasealcardtoawardprizesor (ii)mayutilizenumbersdrawnorselectedintheconductofbingopursuanttotheNebraskaBingoActtoawardprizes;or(d)WhichdoesnotconforminallotherrespectstotherequirementsoftheNebraskaPickleCardLotteryActandanyotherspecificationsimposedbythedepartmentbyruleandregulationastothemanufacture,assembly,orpackagingofpicklecards.

Anysuchcardsorunitsshallbecontrabandgoodsforpurposesofsection9-350. (2)Nomanufacturerorrepresentativethereofshalluseasasalespromotionanystatement,demonstration,orimplicationthatany

certainportionofaseriesofpicklecardscontainsmorewinnersthanotherportionsoftheseriesorthatanyseriesofpicklecardsorpicklecardunitsmaybesoldbytheorganizationoritsdesignatedsalesagentorpicklecardoperatorinaparticularmannerthatwouldgivetheselleranyadvantageinsellingmoreofthepicklecardsbeforehavingtopayoutwinners.

Source: Laws1985,LB408,§24;R.S.Supp.,1985,§9-186.02;Laws1986,LB1027,§104;Laws1996,LB1277,§7;Laws2000,LB658,§3.Effective date:July13,2000.

9-339. Department; examination of pickle cards.Inadditiontoanyotherauthorityofthedepartmentanditsauthorizedagentstoconductinspections,thedepartmentanditsagentsshallhavetheauthoritytoselectanypicklecardorpicklecardunitheldbyadistributor,licensedorganization,salesagent,picklecardoperator,ormanufacturerandtoexaminethequalityandintegrityofsuchcardorunitinanymanner,includingpullingallchancesremainingthereon.Ifthepicklecardorpicklecardunitsoinspectedistherebyalteredinanymannerandnodefect,alteration,deceptivecondition,orotherviolationisdiscovered,theownershallbereimbursedbythedepartmentforthecostofthepicklecardorpicklecardunitandthepicklecardorpicklecardunitshallbecomepropertyofthedepartment.

Source: Laws1985,LB408,§22;R.S.Supp.,1985,§9-186.04;Laws1986,LB1027,§105.

9-340. Pickle card or pickle card units; restrictions; costs of approval.(1)NomanufacturershallsellorotherwiseprovideanypicklecardsorpicklecardunitstoanypersoninNebraskaexceptalicenseddistributororafederallyrecognizedIndiantribeforuseinaClassIIgamingactivityauthorizedbythefederalIndianGamingRegulatoryAct.NodistributorlicensedinNebraskashallpurchaseorotherwiseobtainanypicklecardsorpicklecardunitsexceptfrommanufacturerslicensedinNebraska.

(2)NodistributorshallsellorotherwiseprovideanypicklecardunitsexcepttoanorganizationlicensedtoconductalotterybythesaleofpicklecardspursuanttotheNebraskaPickleCardLotteryActortoafederallyrecognizedIndiantribeforuseinaClassIIgamingactivityauthorizedbythefederalIndianGamingRegulatoryAct.Nopicklecardsshallbesoldbyadistributorexceptintheformofpicklecardunits.Nodistributorshallmarketorsellanypicklecardunitforuseinthisstate:(a)Whichhasnotbeenapprovedandauthorizedbythedepartment;(b)Whichhasacardorplaycountinexcessofsixthousandperpicklecardunit;(c)Whichofferslessthansixty-fivepercentormorethaneightypercentofthegrossproceedstobepaidoutinprizes;(d)whichcontainsanypicklecardorpunchonapunchboard,theindividualpurchasepriceofwhichexceedsonedollar;(e)Inwhichanyindividualpicklecardawardsaprizeorprizesinexcessofonethousanddollars;(f)Whichmaybeusedforanygiftenterpriseasdefinedinsection9-701;(g)Unlessanduntilastampobtainedfromthedepartmentcontaininganidentifyingnumberhasbeenpermanentlyandconspicuouslyaffixedupontheflarecardsuppliedbythemanufacturerforidentificationpurposes.Onceplaced,suchstampshallnotberemovedortamperedwithbyanyperson.Thestateidentificationstampshallbeplacedoneachpunchboardsuchthatthecompletenumber,togetherwiththesymbolappearingthereon,isplainlyvisible.Stateidentificationstampsshallbeobtainedonlyfromthedepartmentandonlybyalicenseddistributorfortencentseach.Suchstampsshallbeplacedbythelicenseddistributoronlyonitemssoldorfurnishedtolicensedorganizationsinthisstate.Suchstampsshallnotbetransferredorfurnishedtoanyotherpersonunlessalreadyplaceduponapunchboardorpicklecardunit;or(h)Withouttheinformationrequiredinsection9-346.

(3)Thedepartmentmayrequireamanufacturerseekingapprovalofanypicklecardunittopaytheactualcostsincurredbythedepartmentinexaminingtheunit.Ifrequired,theanticipatedcostsshallbepaidinadvancebythemanufacturer.Aftercompletionoftheexamination,thedepartmentshallrefundoverpaymentsorchargeandcollectamountssufficienttoreimbursethedepartmentforunderpaymentofactualcosts.

Source: Laws1983,LB259,§51;Laws1984,LB949,§57;Laws1985,LB408,§35;R.S.Supp.,1985,§9-186;Laws1986,LB1027,§106;Laws1988, LB1232,§36;Laws1989,LB767,§38;Laws1994,LB694,§84;Laws1995,LB762,§1.Effective date: September 9, 1995.

9-340.01. Distributor; provide purchaser with invoice.Eachdistributorshall,inamannerprescribedbythedepartment,provideeachpurchaserofapicklecardunitorpunchboardwithaninvoiceofsale.Theinvoiceshallcontainthepurchaser’snameandcompleteaddressandanyotherinformationthedepartmentdeemsnecessary.

Source: Laws 1988, LB 1232, § 37.

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9-340.02. Pickle card units; dispensing devices; payment; definite profit; how remitted; delivery; credit; limitations. (1) All picklecardunitspurchasedbyalicensedorganizationfromalicenseddistributorshallbepaidforbyacheckdrawnonthepicklecardbankaccountofthelicensedorganizationeitherinadvanceoforupondeliveryofthepicklecardunits.

(2)Alicensedpicklecardoperatorshallremitthedefiniteprofit,lessnotmorethanthirtypercentofthedefiniteprofitasallowedbysubsection(4)ofsection9-347,ofallpicklecardunitsreceivedtothesponsoringlicensedorganizationbycheckeitherinadvanceoforupondeliveryofthepicklecardunitsfromthesalesagenttothepicklecardoperator.Upondeliveryofthepicklecardunits,thesalesagentshallissuethepicklecardoperatorastandardreceiptprescribedbythedepartment.

(3)Unlessotherwiseauthorizedbythedepartment,picklecardunitsshallbedeliveredtoapicklecardoperatoronlybyasalesagent'spersonaldeliveryorbydeliveryarrangedbyasalesagentthroughthemailorbyacommoncarrier.

(4)Nolicensedorganizationconductingalotterybythesaleofpicklecardsshallextendcreditinanyform,including,butnotlimitedto,theextensionofanycreditwithregardtothereceiptofthedefiniteprofit,lessnotmorethanthirtypercentofthedefiniteprofitasallowedbysubsection(4)ofsection9-347,ofapicklecardunitfromapicklecardoperatorupondeliveryofapicklecardunittothepicklecardoperatorandtheextensionofanycreditwithregardtothesaleorleaseofanyequipmentorcoin-operatedorcurrency-operatedpicklecarddispensingdeviceusedinconnectionwithalotterybythesaleofpicklecards.

(5)Allpaymentsforthepurchase,lease,orrentalofacoin-operatedorcurrency-operatedpicklecarddispensingdevicebyalicensedorganizationshallbemadebyacheckdrawnontheorganization’spicklecardcheckingaccount.

(6)Allpaymentsforthepurchase,lease,orrentalofacoin-operatedorcurrency-operatedpicklecarddispensingdevicebyalicensedpicklecardoperatorfromalicensedorganizationshallbemadebyacheckdrawnonthebusinesscheckingaccountofthepicklecardoperatororapersonalcheckingaccountofanowner,partner,orofficerofthepicklecardoperator,eitheratthetimeoforbeforeplacementofthedeviceoronorbeforethefirstdayoftheperiodofthelease,whichevercomesfirst.

(7)Allleaseorrentalagreementsbetweenalicensedorganizationandalicensedpicklecardoperatorforcoin-operatedorcurrency-operatedpicklecarddispensingdevicesshallbesubjecttoapprovalbythedepartment.

Source: Laws1988,LB1232,§38;Laws1989,LB767,§39;Laws1991,LB427,§38;Laws1995,LB344,§16;Laws2002,LB545,§33.Operative date: July 20, 2002.

9-341. Licensed manufacturer; duty to keep records. Everylicensedmanufacturershallkeepandmaintainacompletesetofrecordswhichshallincludealldetailsofallactivitiesofthelicenseerelatedtotheconductofthelicensedactivityasmayberequiredbythedepartment,includingthetotalnumberofpicklecardunitssoldtoanyNebraska-licenseddistributor.Suchrecordsshallbeavailableforinspectionbythedepartment.Therecordsshallbemaintainedforaperiodofnotlessthanthreeyearsfromthedateoftheendofthelicensee’sfiscalyear.

Source: Laws1985,LB408,§20;R.S.Supp.,1985,§9-143.04;Laws1986,LB1027,§107.

9-342. Licensed organization; pickle cards; powers and duties; purchases; limitation. (1)Anyorganizationlicensedtoconductalotterybythesaleofpicklecardsshallpurchaseunitsforsuchpurposesfromadistributorandshallusethenetprofitfromthesale of the pickle cards for a lawful purpose.

(2)Whenanyorganization licensed toconducta lotteryby the saleofpicklecardspurchasesunits fromadistributor, suchorganizationshallprovidethedistributorwithacopyoftheorganization’slicenseorotheradequateidentificationindicatingthatsuchorganizationhasavalidlicenseissuedpursuanttosection9-327.

(3)Onlyaperson(a)licensedpursuanttosection9-327asautilization-of-fundsmember,(b)licensedpursuanttosection9-329asasalesagent,(c)licensedpursuanttosection9-232.01asagamingmanager,(d)designatedasabingochairpersonbyanorganizationlicensedtoconductbingopursuanttotheNebraskaBingoAct,or(e)whoservesasamanagerforalicensedorganizationwhichisexemptundersection501(c)(8),(c)(10),or(c)(19)oftheInternalRevenueCodeshallorderpicklecardunitsfromadistributoronbehalfoftheorganization.Onlyapersonlicensedasautilization-of-fundsmembershallpurchasepicklecardunitsfromadistributoronbehalfoftheorganization.Nopicklecardoperatorshallorderorpurchaseanypicklecardorpicklecardunitfroma distributor.

Source: Laws1983,LB259,§42;Laws1984,LB949,§48;R.S.Supp.,1984,§9-177;Laws1986,LB1027,§108;Laws1988,LB1232,§40;Laws1994, LB694,§85;Laws1997,LB248,§15.Operative date: October 1, 1997.Cross Reference: Nebraska Bingo Act, see section 9-201.

9-343. Distributor; records; reports.(1)Adistributorshallmaintainrecordsoftotalsalesofpicklecardunitsand,withinthirtydaysaftertheendofthecalendarmonthorbythelastdayofthemonthfollowingeachmonthlyperiod,whichevercomesfirst,shallreporttothedepartment,inamannerprescribedbythedepartment,detailedinformationconcerningeachsale,whichinformationshallinclude,butnotbelimitedto,(a)thetotalnumberofunitssoldbysuchdistributor,(b)theaggregatepriceforwhichsuchcardswillbesoldbythepurchasingorganization,and(c)anyotherinformationthedepartmentdeemsnecessary.

(2)Adistributorshallmaintainarecordoftheserialnumberofeachunitsoldandthecorrespondingstateidentificationstampnumberassignedtoeachunit.Suchinformationshallbemadeavailabletothedepartmentuponrequest.

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Source: Laws1983,LB259,§48;Laws1984,LB949,§54;Laws1985,LB408,§32;R.S.Supp.,1985,§9-183;Laws1986,LB1027,§109;Laws1988, LB1232,§41;Laws1997,LB248,§16.Operative date:October1,1997.

9-344. Distributor; taxation; deficiencies.(1)Accompanyingthemonthlyreportsrequiredinsection9-343,thedistributorshallremittothedepartmentataxequaltotenpercentofthedefiniteprofitofeachpicklecardunitsoldbythedistributor.Suchtaxshallberemittedwithandreportedonaformprescribedbythedepartmentonamonthlybasisandshallbedueandpayablewithinthirtydaysaftereachmonthlyperiodorbythelastdayofthemonthfollowingeachmonthlyperiod,whichevercomesfirst.ThedepartmentshallremitthetaxtotheStateTreasurerforcredittotheCharitableGamingOperationsFund.Thedistributorshallincludethetaxdueunderthissectioninthesellingpriceofunitsandshallseparatelystatesuchtaxontheinvoice.AlldeficienciesofthetaxprescribedinthissectionshallaccrueinterestandbesubjecttoapenaltyasprovidedforsalesandusetaxesintheNebraskaRevenueActof1967.

(2)UnlessotherwiseprovidedintheNebraskaPickleCardLotteryAct,nooccupationtaxonanyproceedsderivedfromtheconductofalotterybythesaleofpicklecardsshallbelevied,assessed,orcollectedfromanylicenseeundertheactbyanycounty,township,district,city,village,orothergovernmentalsubdivisionorbodyhavingpowertolevy,assess,orcollectsuchtax.

(3)Forpurposesofproperadministrationofthetaximposedbythissectionandtopreventevasionofthetax,itshallbepresumedthateachpicklecardunitsoldbyadistributororobtainedfromamanufacturerandnotaccountedforbyadistributorissubjecttothetaxuntilthecontraryisestablished.Theburdenofprovingthecontraryshallbeuponthedistributor.

Source: Laws1983,LB259,§49;Laws1984,LB949,§55;Laws1985,LB408,§33;R.S.Supp.,1985,§9-184;Laws1986,LB1027,§110;Laws1988, LB1232,§42;Laws1989,LB767,§40;Laws1990,LB1055,§5;Laws1991,LB427,§39;Laws1994,LB694,§86.Operative date: October 1, 1994.Cross Reference: Nebraska Revenue Act of 1967, see section 77-2701.

9-345. Participation; age limitation.(1)Nopersonundereighteenyearsofageshallplayorparticipateinanywayinanylotteryby the sale of pickle cards.

(2)Nopersonorlicensee,oremployeeoragentthereof,shallknowinglypermitanindividualundereighteenyearsofagetoplayorparticipateinanywayinanylotterybythesaleofpicklecardsconductedpursuanttotheNebraskaPickleCardLotteryAct.

Source: Laws1986,LB1027,§111;Laws1997,LB248,§17.Operative date:October1,1997.

9-345.01. Conduct of lottery; location; special function. Alicensedorganizationmayconductalotterybythesaleofpicklecardsonlyatitsdesignatedpremises,atitsregularlyscheduledbingooccasionanditslimitedperiodbingoconductedpursuanttotheNebraskaBingoAct,andatthepremisesofoneormorepicklecardoperators.

Alicensedorganizationmayobtainanauthorizationfromthedepartmenttosellitsindividualpicklecardsatafestival,bazaar,picnic, carnival, or similar special function conductedby the licensedorganizationoutsideof theorganization’sdesignatedpremisesone timeper twelve-monthperiodcommencingOctober1ofeachyearor suchotherdateas thedepartmentmayprescribebyruleandregulationnottoexceedsevenconsecutivedaysifthespecialfunctionisconductedwithinthecountyinwhichthelicensedorganizationhasitsprincipalofficeandthepicklecardsaresoldonlybyvolunteermembersofthelicensedorganization.Alicensedorganizationshallmakewrittenrequesttothedepartmentforsuchauthorizationatleasttendayspriortothestartofthespecialfunction.

Source: Laws1988,LB1232,§28;Laws1994,LB694,§87,Laws2000,LB1086,§14.Effective date: July 13, 2000.Cross Reference: Nebraska Bingo Act, see section 9-201.

9-345.02. Flare cards; punchboards; posting; identifica tion. (1)Licensedorganizationsandpicklecardoperatorssellingindividualpicklecardsorpunchboardsshallconspicuouslyposttheflarecardforeachpicklecardunitinplayatthatlocation.

(2)Licensedorganizationsandpicklecardoperatorsshallidentifyeachflarecardorpunchboardinamannerprescribedbythedepartmentindicatingthenameandstateidentificationnumberofeachnonprofitorganizationonbehalfofwhichindividualpicklecardsandpunchesfrompunchboardsaresoldatsuchlocation.

Source: Laws1988,LB1232,§29;Laws1989,LB767,§41.

9-345.03. Pickle cards; dispensing device; registration; application; fee; decal; nontransferable; access; violations; penalties. (1)Anypersonwhoplacesacoin-operatedorcurrency-operatedpicklecarddispensingdeviceinoperationinthisstatewithoutacurrentregistrationdecalaffixedpermanentlyandconspicuouslytothedeviceshallbesubjecttoanadministrativepenaltyofthirtydollarsforeachviolation.ThedepartmentshallremittheproceedsfromsuchpenaltiestotheStateTreasurerforcredittotheCharitableGamingOperationsFund.

(2)Registrationofthedevicewiththedepartmentshallbemadebyapplicationtothedepartmentandshallbetheresponsibilityofthelicensedorganizationwhensuchdeviceistobeusedinalicensedorganization’sdesignatedpremisesoratthelocationof

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itsregularlyscheduledbingooccasionorofthelicensedpicklecardoperatorwhensuchdeviceistobeusedonthepremisesofthe pickle card operator.

(3)Eachapplicationforregistrationshallinclude(a)thenameandaddressofthelicensedpicklecardoperatororlicensedorganizationregisteringthedevice,(b)thestateidentificationnumberofthelicensedpicklecardoperatororlicensedorganizationregisteringthedevice,(c)adetaileddescriptionofthephysicalappearanceandoperationofthedevice,and(d)suchotherinformationwhichthedepartmentdeemsnecessary.

(4)Afeeoffiftydollarsshallbechargedforeachdecalissuedpursuanttothissection.ThedepartmentshallremittheproceedsfromthefeetotheStateTreasurerforcredittotheCharitableGamingOperationsFund.AlldecalsissuedbythedepartmentpursuanttothissectionshallexpireonDecember31ofeachyearorsuchotherdateasthedepartmentmayprescribebyruleandregulationandshallberenewedannually.

(5)Theregistrationdecalissuedbythedepartmentpursuanttothissectionshallnotbetransferable. (6)UponrequestbytheTaxCommissionerorhisorheragentsoremployees,thelicensedorganizationorpicklecardoperator

responsibleforregisteringthedeviceshallprovidetherequestingindividualimmediateaccesstoanypicklecardscontainedwithinsuchdevice.

(7)AnypersonviolatinganyprovisionofthissectionshallbedeemedguiltyofaClassIImisdemeanor.Eachdayonwhichanypersonengagesinorconductsthebusinessofoperatinganydevicesubjecttothissectionwithouthavingpaidthepenaltyorregistrationasprovidedconstitutesaseparateoffense.

Source: Laws1988,LB1232,§43;Laws1991,LB427,§40;Laws1995,LB344,§17;Laws2000,LB1086,§15.Effective date: July 13, 2000.

9-345.04. Seal cards; authorized; requirements. A lotterybythesaleofpicklecardsmaybeconductedutilizingasealcardcomprisedofaboardorplacardthatcontainsasealorsealswhich,whenremovedoropened,revealpredesignatedwinningnumbers,letters,symbols,oranycombinationthereof.Allrulesgoverningthehandlingofprizesawardedinconjunctionwithsealcardsshallbepostedprominentlyintheareawheresuchpicklecardunitsareplayed.

Source: Laws 1996, LB 1277, § 1.Effective date: July 19, 1996.

9-346. Determination of winner; pickle cards; requirements. (1)Thewinningcards,boards,orticketsinanylotterybythesaleofpicklecardsshallbedeterminedbyacomparisonofthosenumbers,letters,symbols,orconfigurations,orcombinationthereof,whicharerevealedonthepicklecards,toasetofnumbers,letters,symbols,orconfigurations,orcombinationthereof,whichhasbeenpreviouslyspecifiedasawinningcombination.Wheneverthewinningcombinationsdonotcompriseastatementofthecashprizewon,thewinningcombinationsshallbeprintedoneverypicklecardthatiswiderthanoneinchorlongerthantwoandone-halfinches.Picklecardsthataresmallerthansuchdimensionsshallhavethewinningcombinationsprintedonaflarecardthatispubliclydisplayedatthepointofsaleofthepicklecards.

(2)Thewinningchancesofanypicklecardshallnotbedeterminedorotherwiseknownuntilafteritspurchaseandonlyuponopening,pulling,detaching,breakingopen,orotherwiseremovingthetabortabstoclearlyrevealorotherwiseappropriatelyrevealingthecombination.Thewinningchancesshallbedeterminedbyandbaseduponanelementofchance.

(3)Anypersonpossessingawinningpicklecardshallreceivetheappropriatecashprizepreviouslydeterminedandspecifiedforthatwinningcombination.

(4)Allpicklecardsshalllegiblybearontheoutsideofeachpicklecardthenameofthelicensedorganizationconductingthelotterybythesaleofpicklecardsandsuchorganization’sstateidentificationnumber.

(5)Nothinginthissectionshallprohibit(a)punchboardswhichallowthepersonwhopurchasesthelastpunchonthepunchboardtoreceiveacashprizepredeterminedbythemanufacturerasaresultofpurchasingthelastpunch,(b)picklecardunitswhichutilizeasealcardwhichallowsasealcardwinnertoreceiveacashprizepredeterminedbythemanufacturer,(c)picklecardunitswhichutilizeasealcardasdescribedinthissectionwhichallowthepersonwhopurchasesthelastpicklecardofsuchaunittoreceiveacashprizepredeterminedbythemanufacturerasaresultofpurchasingthelastpicklecard,or(d)picklecardunitswhicharedesignedbyamanufacturertoutilizebingonumbersdrawnduringtheconductofbingotodetermineawinningcombination.SuchpicklecardunitsshallbesoldbyalicenseddistributoronlytoanorganizationlicensedtoconductalotterybythesaleofpicklecardswhichisalsolicensedtoconductbingoandshallbeplayedonlyatthebingopremisesofthelicensedorganizationduringabingooccasionconductedpursuanttotheNebraskaBingoAct.

Source: Laws1983,LB259,§5;Laws1984,LB949,§11;Laws1985,LB408,§4;R.S.Supp.,1985,§9-140.01;Laws1986,LB1027,§112;Laws1988, LB1232,§44;Laws1989,LB767,§42;Laws1994,LB694,§88;Laws1996,LB1277,§8;Laws1997,LB248,§18;Laws2000,LB658,§4.Effective date: July 13, 2000.

9-347. Gross proceeds; definite profit; use; restrictions; allocation of expenses.(1)Thegrossproceedsofanylotterybythesaleofpicklecardsshallbeusedsolelyforlawfulpurposes,awardingofprizes,paymentoftheunitcost,anycommissionpaidtoapicklecardoperator,allowableexpenses,andallocationsforbingoexpensesasprovidedbysubsection(5)ofthissection.

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(2)Notlessthansixty-fivepercentormorethaneightypercentofthegrossproceedsofanylotterybythesaleofpicklecardsshallbeusedfortheawardingofprizes.

(3)Notmorethantwelvepercentofthedefiniteprofitofapicklecardunitshallbeusedbythelicensedorganizationtopaytheallowableexpensesofoperatingalotterybythesaleofpicklecards,exceptthatlicensefeespaidtothedepartmenttolicensetheorganization,eachutilization-of-fundsmember,andanysalesagentandpicklecarddispensingdeviceregistrationfeesshallnotbeincludedindeterminingthetwelve-percentlimitationonexpensesandnoportionofsuchtwelvepercentshallbeusedtopayanyexpensesassociatedwiththesaleofpicklecardsatabingooccasionconductedpursuanttotheNebraskaBingoAct,andofsuchtwelvepercentnotmorethansixpercentofthedefiniteprofitmaybeusedbythelicensedorganizationforthepaymentofanycommission,salary,orfeetoasalesagentinconnectionwiththemarketing,sale,anddeliveryofapicklecardunit.Whendeterminingthetwelvepercentofdefiniteprofitthatispermittedtopaytheallowableexpensesofoperatingalotterybythesaleofpicklecards,thedefiniteprofitfromthesaleofpicklecardsattheorganization’sbingooccasionsshallnotbeincluded.

(4)Notmorethanthirtypercentofthedefiniteprofitofapicklecardunitshallbeusedbyalicensedorganizationtopayapicklecardoperatoracommission,fee,orsalaryforsellingindividualpicklecardsasopportunitiesforparticipationinalotterybythesaleofpicklecardsonbehalfofthelicensedorganization.

(5)AnorganizationlicensedtoconductbingopursuanttotheNebraskaBingoActmayallocateaportionoftheexpensesassociatedwiththeconductofitsbingooccasionstoitslotterybythesaleofpicklecardsconductedatsuchbingooccasions.Suchallocationshallbebaseduponthepercentagethatpicklecardgrossproceedsderivedfromthesaleofpicklecardsatthebingooccasionsrepresentstothetotalofbingogrossreceiptsandpicklecardgrossproceedsderivedfromsuchbingooccasionsforthepreviousannualreportingperiod.Anorganizationlicensedtoconductbingothathasnotbeenpreviouslylicensedshalldeterminesuchallocationbaseduponthepercentagethatpicklecardgrossproceedsderivedfromthesaleofpicklecardsatthebingooccasionsrepresentstothetotalofbingogrossreceiptsandpicklecardgrossproceedsderivedfromsuchbingooccasionsfortheinitialthreeconsecutivecalendarmonthsofoperation.Thetotalamountofexpensesthatmaybeallocatedtotheorganization’slotterybythesaleofpicklecardsshallbesubjecttothelimitationsonbingoexpensesasprovidedforintheNebraskaBingoActwithrespecttothefourteen-percentexpenselimitationandthefair-market-valuelimitationonthepurchase,rental,orleaseofbingoequipmentandtherentalorleaseofpersonalpropertyorofapremisesfortheconductofbingo.Noexpensesassociatedwiththeconductofbingomaybepaiddirectlyfromthepicklecardcheckingaccount.Alicensedorganizationwhichneedstoallocateaportionoftheexpensesassociatedwiththeconductofitsbingooccasionstoitslotterybythesaleofpicklecardsconductedatsuchbingooccasionstopaybingoexpensesasprovidedbythissectionshalltransferfundsfromthepicklecardcheckingaccounttothebingocheckingaccountbyacheckdrawnonthepicklecardcheckingaccountorbyelectronicfundstransfer.

Source: Laws1986,LB1027,§113;Laws1988,LB1232,§45;Laws1989,LB767,§43;Laws1994,LB694,§89;Laws1995,LB344,§18;Laws2002, LB545,§34;Laws2009,LB286§2.Operative date: August 30, 2009.

9-347.01. Definite profit; distribution; net profit; use.(1)Foreachtypeofpicklecardunitmarketedinthisstate,thedepartmentshalldeterminethefollowing:(a)Whenalicensedorganizationsellspicklecardsthroughpicklecardoperators,theportionofthedefiniteprofitfromthatpicklecardunitwhichshallgotothelicensedorganization,suchamounttobenotlessthanseventypercentofthedefiniteprofitfromsuchpicklecardunit;(b)themaximumamountofthedefiniteprofitfromthesaleofapicklecardunitthatalicensedorganizationmaypayapicklecardoperatorasacommission,fee,orsalarytosellitspicklecards,suchamountnottoexceedthirtypercentofthedefiniteprofitfromsuchpicklecardunit;(c)theportionofthedefiniteprofitfromthesaleofapicklecardunitwhichmaybeexpendedbyalicensedorganizationforallowableexpenses,suchamountnottoexceedtwelvepercentofthedefiniteprofitfromsuchpicklecardunit;and(d)theportionofthedefiniteprofitfromthesaleofapicklecardunitwhichmaybeutilizedbyalicensedorganizationforpaymentoftheorganization'ssalesagent,suchamounttobeaportionoftheallowableexpensesandnottoexceedsixpercentofthedefiniteprofitfromsuchpicklecardunit.

(2)Thelicensedorganization’snetprofitfromthesaleofapicklecardunitshallbeusedexclusivelyforalawfulpurpose.Alicensedorganizationshallnotdonateorpromisetodonateitsnetprofitoranyportionofthenetprofittoarecipientoutsideofitsorganizationasaninducementfororinexchangefor(a)apayment,gift,orotherthingofvaluefromtherecipienttoanyperson,organization,orcorporation,including,butnotlimitedto,thelicensedorganizationoranyofitsmembers,employees,oragents,or(b)apicklecardoperator’sagreementtosellpicklecardsonbehalfofthelicensedorganization.

Source: Laws1988,LB1232,§46;Laws1989,LB767,§44;Laws1995,LB344,§19;Laws2002,LB545,§35;Laws2009,LB286§3.Operative date: August 30, 2009.

9-348. Segregation of definite profit; manner of payment; records; requirements. (1)Thedefiniteprofit, lessnotmore thanthirtypercentofthedefiniteprofitasallowedbysubsection(4)ofsection9-347,ofanylotterybythesaleofpicklecardsandallamountsreceivedbyanylicensedorganizationfromthesale,lease,orrentalofcoin-operatedorcurrency-operatedpicklecarddispensingdevicesshallbesegregatedfromotherrevenueofanylicensedorganizationconductingthelotteryandplacedinaseparatecheckingaccount.Alllawfulpurposedonationsandexpensesrelatingtothelicensedorganization’slotterybythesaleofpicklecards,includingtheallowableexpenses,anylicensefeespaidtothedepartmenttolicensetheorganization,each

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utilization-of-fundsmember,andanysalesagent,coin-operatedorcurrency-operatedpicklecarddispensingdeviceregistrationfees,andtheunitcostbutexcludingthepaymentofprizesforwinningpicklecards,shallbepaidbycheckfromsuchaccountandshallbemadepayabletotheultimateuseofsuchlawfulpurposedonationsorexpenses.

(2)Separate recordsshallbemaintainedbyany licensedorganizationconductinga lotteryby thesaleofpicklecards.Eachnonprofitorganizationconductingalotterybythesaleofpicklecardsshallkeeparecordofalllocationsorpersonswhoarepaidtosellpicklecards.RecordsandlistsrequiredbytheNebraskaPickleCardLotteryActshallbepreservedforatleastthreeyears.Anylawenforcementagencyorotheragencyofgovernmentshallhavetheauthoritytoinvestigatetherecordsrelatingtolotteriesbythesaleofpicklecardsandgrossproceedsfromsuchlotteriesatanytime.Organizationsshall,uponproperwrittenrequest,deliverallsuchrecordstothedepartment,lawenforcementagency,orotheragencyofgovernmentforinvestigation.

Source: Laws1983,LB259,§46;Laws1984,LB949,§52;R.S.Supp.,1984,§9-181;Laws1986,LB1027,§114;Laws1988,LB1232,§47;Laws1989, LB767,§45;Laws1994,LB694,§90;Laws1995,LB344,§20.Effective date: September 9, 1995.

9-348.01. Lottery by the sale of pickle cards; sources of funding; payments.(1)Alotterybythesaleofpicklecardsshallfunditselfafteritsfirstyearofexistenceandshallnotreceivemoneyfromanyothersource,includingtheoperationofothercharitablegamingactivities,forthepaymentofprizes,unitcost,allowableexpenses,anycommissionpaidtoapicklecardoperator,lawfulpurposedonations,oranyotherexpenseassociatedwiththeoperationofthelotterybythesaleofpicklecardsexceptasprovidedinsubsection(2)ofthissection.

(2)Alicensedorganizationestablishingalotterybythesaleofpicklecardsmayfinancesuchlotterywithmoneyfromthegeneralfundofthelicensedorganizationduringthefirstyearofoperationofthelotterybythesaleofpicklecards.Generalfundmoneyusedtofinancealotterybythesaleofpicklecardsmayberepaidfromfundsreceivedbythelotterybythesaleofpicklecards.

(3)Alicensedorganizationmaycomminglefundsreceivedfromthesaleofpicklecardswithanygeneraloperatingfundsofthelicensedorganizationbymeansofacheckdrawnonthepicklecardcheckingaccountorbyelectronicfundstransferfromthataccount,buttheburdenofproofshallbeonthelicensedorganizationtodemonstratethatsuchcommingledfundsarenotusedtomakeanypaymentsassociatedwiththeoperationofthelotterybythesaleofpicklecardsandareusedforalawfulpurpose.

Source: Laws1988,LB1232,§49;Laws1989,LB767,§46;Laws1994,LB694,§91.Operative date: October 1, 1994.

9-349. Lottery by the sale of pickle cards; reports.(1)Alicensedorganizationconductingalotterybythesaleofpicklecardsshallreportannuallytothedepartment,onaformprescribedbythedepartment,acompleteandaccurateaccountingofitsgrossproceedsfromthelotterybythesaleofpicklecards.Theannualreportshalldemonstratethattheorganization’sdefiniteprofitfrompicklecardsaleshasbeenretainedintheorganization’spicklecardcheckingaccountorexpendedsolelyforallowableexpenses,unitcosts,anypicklecardoperatorcommissions,lawfulpurposedonations,anylicensefeespaidtothedepartmenttolicensetheorganization,eachutilization-of-fundsmember,andanysalesagent,coin-operatedorcurrency-operatedpicklecarddispensingdeviceregistrationfees,oranybingoexpensesallocatedtothesaleofpicklecardsasprovidedforinsection9-347.

(2)Theannualreportshallcovertheorganization’slotterybythesaleofpicklecardsactivitiesfromJuly1throughJune30ofeachyearorsuchotherperiodasthedepartmentmayprescribebyruleandregulation.SuchreportshallbesubmittedtothedepartmentonorbeforeAugust15ofeachyearorsuchotherdateasthedepartmentmayprescribebyruleandregulation.

(3)Acopyofthereportshallbesubmittedtotheorganization'smembership. (4)Upondissolutionofalicensedorganizationorifapreviouslylicensedorganizationdoesnotrenewitslicensetoconducta

lotterybythesaleofpicklecards,itslicenserenewalapplicationisdenied,oritslicenseiscanceledorrevoked,allremainingprofitsderivedfromtheconductofthelotterybythesaleofpicklecardsshallbeutilizedforalawfulpurposeandshallnotbedistributedtoanyprivateindividualorshareholder.Acompleteandaccuratereportoftheorganization'spicklecardactivityshallbefiledwiththedepartment,onaformprescribedbythedepartment,nolaterthanforty-fivedaysafterthedatetheorganizationisdissolvedornolaterthanforty-fivedaysaftertheexpirationdateofthelicenseortheeffectivedateofthelicenserenewalapplicationdenialorlicensecancellationorrevocation.Thereportshallcovertheperiodfromtheendoftheorganization'smostrecentannualreportfiledthroughthedatetheorganizationisdissolvedorthedatethelicenserenewalapplicationhasbeendeniedorthelicensehasbeencanceledorrevokedorhasotherwiseexpired.Theorganizationshallincludewiththereportaplanforthedisbursementofanyremainingprofitswhichshallbesubjecttoapprovalbythedepartment.Suchplanshallidentifythespecificpurposesforwhichtheremainingprofitswillbeutilized.

(5)Inadditiontothereportsrequiredbysubsections(1)and(4)ofthissection,thedepartmentmayprescribebyruleandregulationthefilingofapicklecardrevenuestatusreportbyAugust15ofeachyearorsuchotherdateasthedepartmentmayprescribebyruleandregulation,onaformprescribedbythedepartment,listingalldisbursementsofpicklecardrevenueuntilallsuchrevenuehasbeenexpendedeitherforallowableexpensesorforalawfulpurpose.

Source: Laws1983,LB259,§47;Laws1984,LB949,§53;R.S.Supp.,1984,§9-182;Laws1986,LB1027,§115;Laws1988,LB1232,§48;Laws1994, LB694,§92;Laws1995,LB344,§21;Laws2002,LB545,§36.Operative date: July 20, 2002.

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9-350. Tax Commissioner; power to seize contraband; effect. (1)TheTaxCommissionerorhisorheragentsoremployees,atthedirectionoftheTaxCommissioner,oranypeaceofficerofthisstatemayseize,withoutawarrant,thefollowingcontrabandgoodsfoundanyplaceinthisstate:(a)Anypicklecardsandpicklecardunitsdeclaredtobecontrabandgoodsinsection9-338;(b)Anypicklecardsthatarenotproperlyprintedasrequiredinsection9-346oronwhichthetaxhasnotbeenpaid,exceptforpicklecardsinthepossessionofalicenseddistributororlicensedmanufacturer;(c)Anypicklecardsorpicklecardunitspurchasedbyanylicensedorganizationfromanysourceotherthanalicenseddistributor;(d)Anypicklecardsorpicklecardunitsthatarebeingsoldwithoutalloftheproperlicenses;(e)AnypicklecardunitsorpicklecardsthathavebeensoldinviolationoftheNebraskaPickleCardLotteryActoranyrulesorregulationsadoptedandpromulgatedpursuanttosuchact;(f)Anypicklecardsorpicklecardunitsinthepossessionofanylicenseewhoselicensehasbeenrevoked,canceled,orsuspendedoranypicklecardsorpicklecardunitsinthepossessionofanyformerlicenseewhoselicensehasexpired;or(g)Anycoin-operatedorcurrency-operatedpicklecarddispensingdevicewhichcontainsanypicklecardsdeemedtobecontrabandgoodspursuanttothissubsectionoranysuchdevicewhichdoesnothavepermanentlyandconspicuouslyaffixedtoitacurrentregistrationdecalrequiredbysection9-345.03.

(2)TheTaxCommissionermay,uponsatisfactoryproof,directreturnofanyconfiscatedpicklecardsorpicklecardunitswhenheorshehasreasontobelievethattheentityfromwhomthepicklecardsorpicklecardunitswereconfiscatedhasnotwillfullyorintentionallyevadedanytaxorfailedtocomplywiththeNebraskaPickleCardLotteryAct.Uponreceiptofanaffidavitofownership,theTaxCommissionershallrelinquishpossessionofaseizedcoin-operatedorcurrency-operatedpicklecarddispensingdevicetothelawfulownersofthedeviceifthedeviceisnotneededasevidencebythedepartment,anycountyattorney,ortheAttorneyGeneralatanadministrativeorjudicialhearing,ifcontrabandpicklecardshavebeenremovedfromthedevice,andintheeventthedevicewasseizedduetoaviolationofsubsection(2)ofsection9-345.03,iftheentitywhowasutilizingthedevicehasappliedforandhasreceivedacurrentregistrationdecalfortheseizeddevice.

(3)TheTaxCommissionermay,uponfindingthatanentityinpossessionofcontrabandgoodshaswillfullyorintentionallyevadedanytaxorfailedtocomplywiththeact,confiscatesuchgoods.Anypicklecardsorpicklecardunitsconfiscatedshallbedestroyed.

(4)Theseizureanddestructionofcoin-operatedorcurrency-operatedpicklecarddispensingdevices,picklecards,orpicklecardunitsshallnotrelieveanypersonfromafine,imprisonment,orotherpenaltyforviolationoftheact.

(5)TheTaxCommissionerorhisorheragentsoremployees,atthedirectionoftheTaxCommissioner,maysealanypicklecards,picklecardunits,orcoin-operatedorcurrency-operatedpicklecarddispensingdevicesdeemedtobecontrabandgoodspursuanttothissection.SuchsealshallnotbebrokenuntilauthorizedbytheTaxCommissionerorhisorheragentsoremployees.Ifthesealonacoin-operatedorcurrency-operatedpicklecarddispensingdeviceisbrokenpriortopaymentofthepenaltyandregistrationofthedevicerequiredundersection9-345.03,thedeviceshallbesubjecttoforfeitureandsalebytheTaxCommissioner.

(6)TheTaxCommissionerorhisorheragentsoremployees,whendirectedtodosobytheTaxCommissioner,oranypeaceofficerofthisstateshallnotberesponsiblefornegligenceinanycourtforthesealing,seizure,orconfiscationofanycion-operatedorcurrency-operatedpicklecarddispensingdevice,picklecard,orpicklecardunitpursuanttothissection.

(7)PossessionofpicklecardsorpicklecardunitswhicharedeemedtobecontrabandgoodspursuanttothissectionshallbeaviolationoftheNebraskaPickleCardLotteryAct.

Source: Laws1985,LB408,§29;R.S.Supp.,1985,§9-187.02;Laws,1986,LB1027,§116;Laws1991,LB427,§41;Laws1995,LB344,§22;Laws1997, LB 248, § 19.Operative date: October 1, 1997.

9-351. Unauthorized sale or possession of pickle cards; penalty. (1)Nopersonororganizationotherthanthosequalifyingundersection9-326andlicensedpursuanttosection9-327shallbepermittedtoconductalotterybythesaleofpicklecardsinthisstate.

(2)Nopersonotherthanalicenseddistributorormanufacturershallpossesspicklecardsthatarenotproperlyprintedwiththeinformationrequiredinsection9-346.

(3)AnypersonwhoviolatesthissectionshallbeguiltyofaClassImisdemeanor.Source: Laws1983,LB259,§44;Laws1984,LB949,§51;Laws1985,LB408,§31;R.S.Supp.,1985,§9-179;Laws1986,LB1027,§117.

9-352. Violations; penalties; enforcement; venue. (1)Exceptwhenanotherpenaltyisspecificallyprovided,anypersonorlicensee,oremployeeoragentthereof,whoviolatesanyprovisionoftheNebraskaPickleCardLotteryAct,orwhocauses,aids,abets,orconspireswithanothertocauseanypersonorlicenseeoranyemployeeoragentthereoftoviolatetheact,shallbeguiltyofaClassImisdemeanorforthefirstoffenseandaClassIVfelonyforanysecondorsubsequentviolation.Anylicenseeguiltyofviolatinganyprovisionoftheactmorethanonceinatwelve-monthperiodmayhaveitslicensecanceledorrevoked.Suchmattersmayalsobereferredtoanyotherstatelicensingagenciesforappropriateaction.

(2)EachofthefollowingviolationsoftheNebraskaPickleCardLotteryActshallbeaClassIVfelony:(a)Giving,providing,orofferingtogiveorprovide,directlyorindirectly,toanypublicofficial,employee,oragentofthisstate,oranyagenciesorpoliticalsubdivisionsofthisstate,anycompensationorrewardorshareofthemoneyforpropertypaidorreceivedthroughgamblingactivitiesregulatedunderChapter9inconsiderationforobtaininganylicense,authorization,permission,orprivilegetoparticipateinanygamingoperationsexceptasauthorizedunderChapter9oranyrulesandregulationsadoptedandpromulgated

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pursuanttosuchchapter;(b)Makingorreceivingpaymentofaportionofthepurchasepriceofpicklecardsbyasellerofpicklecardstoabuyerofpicklecardstoinducethepurchaseofpicklecardsortoimproperlyinfluencefuturepurchasesofpicklecards; (c)Usingbogus,counterfeit,ornonopaquepicklecards,pulltabs,breakopens,punchboards,jartickets,oranyothersimilarcard,board,orticketorsubstitutingorusinganypicklecards,pulltabs,orjarticketsthathavebeenmarkedortamperedwith;(d)KnowinglyfilingafalsereportundertheNebraskaPickleCardLotteryAct;(e)Knowinglyfalsifyingormakinganyfalseentryinanybooksorrecordswithrespecttoanytransactionconnectedwiththeconductofalotterybythesaleofpicklecards;or(f)KnowinglysellingordistributingorknowinglyreceivingwithintenttosellordistributepicklecardsorpicklecardunitswithoutfirstobtainingalicenseinaccordancewiththeNebraskaPickleCardLotteryActpursuanttosection9-329,9-329.03,9-330, or 9-332.

(3)IntentionallyemployingorpossessinganydevicetofacilitatecheatinginanylotterybythesaleofpicklecardsoruseofanyfraudulentschemeortechniqueinconnectionwithanylotterybythesaleofpicklecardsisaviolationoftheNebraskaPickleCardLotteryAct.Theoffenseisa:(a)ClassIImisdemeanorwhentheamountgainedorintendedtobegainedthroughtheuseofsuchitems,schemes,ortechniquesislessthanfivehundreddollars;(b)ClassImisdemeanorwhentheamountgainedorintendedtobegainedthroughtheuseofsuchitems,schemes,ortechniquesisfivehundreddollarsormorebutlessthanonethousandfivehundreddollars;and(c)ClassIVfelonywhentheamountgainedorintendedtobegainedthroughtheuseofsuchitems,schemes,ortechniquesisonethousandfivehundreddollarsormore.

(4)Inallproceedingsinitiatedinanycourtorotherwiseundertheact,itshallbethedutyoftheAttorneyGeneralandappropriatecountyattorneytoprosecuteanddefendallsuchproceedings.

(5)ThefailuretodoanyactrequiredbyorundertheNebraskaPickleCardLotteryActshallbedeemedanactinpartintheprincipalofficeofthedepartment.Anyprosecutionundersuchactmaybeconductedinanycountywherethedefendantresidesorhasaplaceofbusinessorinanycountyinwhichanyviolationoccurred.

(6)Intheenforcementandinvestigationofanyoffensecommittedundertheact,thedepartmentmaycalltoitsaidanysheriff,deputysheriff,orotherpeaceofficerinthestate.

Source: Laws1986,LB1027,§118;Laws1987,LB523,§2;Laws1988,LB1232,§50;Laws1995,LB344,§23;Laws1997,LB248,§20;Laws2015, LB 605, § 2.Effective date: August 30, 2015.

9-353. Violations; standing to sue.Anypersoninthisstate,includinganylawenforcementofficial,whohascausetobelievethat(1)anylicensedorganization,(2)anyemployeeoragentofsuchlicensedorganization;(3)anypersonactinginconcertwithsuchlicensedorganization,or(4)anypersoninconnectionwithalotterybythesaleofpicklecardshasengagedinorisengaginginanyconductinviolationoftheNebraskaPickleCardLotteryActorhasaidedorisaidinganotherinanyconductinviolationoftheactmaycommenceacivilactioninanydistrictcourtofthisstate.

Source: Laws 1986, LB 1027, § 119.

9-354. Civil action; relief permitted.Inanycivilactioncommencedpursuanttosection9-353,acourtmayallow:

(1)Atemporaryrestrainingorderorinjunction,withorwithoutabondasthecourtmaydirect,prohibitingaparttotheactionfromcontinuingorengaginginsuchconduct,aidinginsuchconduct,ordoinganyactinfurtheranceofsuchconduct;

(2)Adeclarationthattheconductbyalicensedorganizationoremployeeoragentofalicensedorganization,whichisapartytotheaction,constitutesaviolationoftheNebraskaPickleCardLotteryActandadeterminationofthenumberandtimesofviolationsforcertificationtothedepartmentforappropriatelicenserevocationpurposes;

(3)Apermanentinjunctionunderprinciplesofequityandonreasonableterms;

(4)Anaccountingoftheprofits,earnings,orgainsresultingdirectlyandindirectlyfromsuchviolations,withrestitutionoradistributionofsuchprofits,earnings,orgainstoalllicensedorganizationsexistingatthetimeofsuchviolationswhichapplytothecourtandshowthattheysufferedmonetarylossesbyreasonofsuchviolationsandwithdistributionofanyremainingprofits,earnings,orgainstothestate;and

(5)Reasonableattorney’sfeesandcourtcosts.Source: Laws1986,LB1027,§120;Laws1991,LB427,§42.

9-355. Civil procedure statutes; applicability. Proceedingsundersection9-353shallbesubject toandgovernedbythedistrictcourtcivilprocedurestatutes.Issuesproperlyraisedshallbetriedanddeterminedasinothercivilactionsinequity.Allorders,judgments,anddecreesrenderedmaybereviewedasotherorders,judgments,anddecrees.

Source: Laws 1986, LB 1027, § 121.

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9-356. Returns, reports, and records; disclosure; limitations; violation; penalty.(1)Exceptinaccordancewithaproperjudicialorderorasotherwiseprovidedbythissectionorotherlaw,itshallbeaClassImisdemeanorfortheTaxCommissioneroranyemployeeoragentoftheTaxCommissionertomakeknown,inanymannerwhatsoever,thecontentsofanytaxreturnoranyreportsorrecordssubmittedbyalicenseddistributorormanufacturerorthecontentsofanypersonalhistoryreportssubmittedbyanylicenseeorlicenseapplicanttothedepartmentpursuanttotheNebraskaPickleCardLotteryActandanyrulesandregulationsadoptedandpromulgatedpursuanttosuchact.

(2)Nothinginthissectionshallbeconstruedtoprohibit(a)thedeliverytoataxpayer,licensee,orhisorherdulyauthorizedrepresentativeorhisorhersuccessors,receivers,trustees,executors,administrators,assignees,orguarantors,ifdirectlyinterested,acertifiedcopyofanytaxreturnorreportorrecord,(b)thepublicationofstatisticssoclassifiedastopreventtheidentificationofparticulartaxreturnsorreportsorrecords,(c)theinspectionbytheAttorneyGeneral,acountyattorney,orotherlegalrepresentativeofthestateoftaxreturnsorreportsorrecordssubmittedbyalicenseddistributorormanufacturerwheninformationonthetaxreturnsorreportsorrecordsisconsideredbytheAttorneyGeneral,countyattorney,orotherlegalrepresentativetoberelevanttoanyactionorproceedinginstitutedbythetaxpayerorlicenseeoragainstwhomanactionorproceedingisbeingconsideredorhasbeencommencedbyanystateagencyorcounty,(d)thefurnishingofanyinformationtotheUnitedStatesGovernmentortostatesallowingsimilarprivilegestotheTaxCommissioner,(e)thedisclosureofinformationandrecordstoacollectionagencycontractingwiththeTaxCommissionerforthecollectionofdelinquenttaxesundertheNebraskaPickleCardLotteryAct,(f)thepublicationordisclosureoffinaladministrativeopinionsandordersmadebytheTaxCommissionerintheadjudicationoflicensedenials,suspensions,cancellations,orrevocationsorthelevyingoffines,(g)thereleaseofanyapplication,withoutthecontentsofanysubmittedpersonalhistoryreportorsocialsecuritynumber,filedwiththedepartmenttoobtainalicensetoconductactivitiesundertheact,whichshallbedeemedapublicrecord,(h)thereleaseofanyreportfiledpursuanttosection9-349oranyotherreportfiledbyalicensedorganization,salesagent,orpicklecardoperatorpursuanttotheact,whichshallbedeemedapublicrecord,or(i)thenotificationofanapplicant,alicensee,oralicensee’sdulyauthorizedrepresentativeoftheexistenceofandthegroundsforanyadministrativeactiontodenythelicenseapplicationof,torevoke,cancel,orsuspendthelicenseof,ortolevyanadministrativefineuponanyagentoremployeeoftheapplicant,thelicensee,oranyotherpersonuponwhomtheapplicantorlicenseereliestoconductactivitiesauthorizedbytheact.

(3)NothinginthissectionshallprohibittheTaxCommissioneroranyemployeeoragentoftheTaxCommissionerfrommakingknownthenamesofpersons,firms,orcorporationslicensedtoconductactivitiesundertheact,thelocationsatwhichsuchactivitiesareconductedbythelicenseholders,orthedatesonwhichsuchlicenseswereissued.

(4)Notwithstandingsubsection(1)ofthissection,theTaxCommissionermaypermitthePostalInspectoroftheUnitedStatesPostalServiceorhisorherdelegatestoinspectataxreturnorreportsorrecordssubmittedbyalicenseddistributorormanufacturerpursuanttotheactwheninformationonthereturnsorreportsorrecordsisrelevanttoanyactionorproceedinginstitutedorbeingconsideredbytheUnitedStatePostalServiceagainstsuchpersonforthefraudulentuseofthemailstocarryanddeliverfalseandfraudulenttaxreturnstotheTaxCommissionerwiththeintenttodefraudtheStateofNebraskaortoevadethepaymentofNebraska state taxes.

(5)Notwithstandingsubsection(1)ofthissection,theTaxCommissionermaypermitothertaxofficialsofthisstatetoinspectataxreturnorreportsorrecordssubmittedpursuanttotheact,butsuchinspectionshallbepermittedonlyforpurposesofenforcingataxlawandonlytotheextentandundertheconditionsprescribedbytherulesandregulationsoftheTaxCommissioner.

Source: Laws1988,LB1232,§51;Laws1991,LB427,§43;Laws1994,LB694,§93;Laws1995,LB344,§24,Laws2007,LB638,§12.Effective date: September 1, 2007.

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