316 Neb. Admin. Code, 35, § 300 - SCOPE AND DEFINITIONS

300.01 Bingo, Lottery, Raffle, and Lottery by Pickle Card Regulations 35 - 300 through 35 - 318 are adopted to carry out the provisions of the Nebraska Pickle Card Lottery Act. The following definitions apply as used throughout section 35 - 300 through 318.

300.02 Definite profit

Definite profit means the gross proceeds or total possible receipts of a pickle card unit less all of the possible prizes from that pickle card unit. For example:

Gross proceeds (3,600 pickle cards at $1)	$3,600
Less prizes	(2,600)
Definite profit	$1,000

300.03 Department

Department means the Nebraska Department of Revenue.

300.04 Dispensing device

Dispensing device means any machine or device into which a person inserts money, a token, or something of value in exchange for one or more pickle cards. The definition of dispensing device does not include any machine or device that awards or dispenses any other type of prize including, but not limited to, free plays or any other item of value.

300.05 Flare card

Flare card means a card, board, poster, flyer, or paper prepared by the manufacturer of a pickle card unit which is enclosed with each unit. The flare card must identify the serial number for the unit, the state identification stamp, the numbers, letters, symbols, or configurations which, when revealed by opening the tabs on a pickle card, represent the winning combinations, the number of cards in the pickle card unit which contain the winning combinations and their values, the form n umber of the game, and the name, logo, symbol, design, or trademark of the manufacturer of the pickle card unit.

300.06 Gross profit

Gross profit means the definite profit from a pickle card unit less any commission paid to a pickle card operator for the sale of the unit. For example:

Gross proceeds (3,600 pickle cards at $1)	$3,600
Less prizes	(2,600)
Definite profit	$1,000
Less pickle card operator's commission (30%)	(300)
Gross profit	$ 700

300.07 Member

Member means an individual who meets the written member ship requirements contained in the organization's articles of incorporation, bylaws, charter, statement of purpose, or other written rules or statement governing membership of the organization.

300.07A A person whose only participation in the activities of the organization involves the conduct of gaming activities is not a member.

300.08 Net profit

Net profit means the gross profit from a pickle card unit less the unit cost and the allowable expenses incurred by the licensed organization for marketing the unit. For example:

Gross proceeds (3,600 pickle cards at $1)	$3,600
Less prizes		(2,600)
Definite profit		$1,000
Less pickle card operator's
commission (30%)*		( 300)
Gross profit		$ 700
Less elements of unit cost
Cost of unit	$ 60
Imprinting fee	7
Pickle card tax (10%)*	100
Subtotal:	167
Sales tax **	12
Federal tax (.0025 of gross)*** if applicable	9
	$188
Allowable expenses (12%)* 6% sales agents' commission	$ 60
Other marketing expenses 60	$ 120
Total unit cost and allowable expenses	$ 308	( 308)
	129
Net profit		$392

* Calculated on definite profit

** Calculated on total unit cost, including the pickle card tax and the imprinting fee - sales tax may vary, the amount shown is rounded and assumes the maximum local rate

*** Calculated on gross proceeds

300.09 Substantial interest

Substantial interest means a connection, interest, or concern, directly or indirectly, with an individual, organization, firm, or corporation as follows:

300.09A Regarding a sole proprietorship, an individual or his or her spouse who owns, operates, manages, or conducts directly or indirectly, a part of the sole proprietorship;

300.09B Regarding a partnership, an individual, his or her spouse, or a partnership, limited liability company (LLC), or corporation who owns, operates, manages, or conducts directly or indirectly a part of the partnership activity, or shares in any of the profits or potential profits of the partnership activities;

300.09C Regarding a LLC, an individual, his or her spouse, or a partnership, LLC, or corporation who owns, operates, manages, or conducts directly or indirectly a part of the LLC activity, or shares in any of the profits or potential profits of the LLC activity;

300.09D Regarding a corporation, an individual, his or her spouse, or a partnership, LLC, or corporation who owns, operates, manages, or conducts directly or indirectly a part of the corporation activity, or who is an officer or director of the corporation or is a holder directly or indirectly of ten percent or more of any class of stock in the corporation;

300.09E Regarding an individual, an individual or his or her spouse who provides ten percent or more of the capital, whether in cash, goods, or services for the operation of a manufacturer, distributor, or pickle card operator during a calendar year; and

300.09F Regarding an organization, association, or business not covered by subdivisions A, B, C, D, or E of this regulation:

300.09F(1) An individual or his or her spouse who is an officer or director of or manages the business affairs of the organization, association, or business; or

300.09F(2) An individual or his or her spouse who owns or controls ten percent or more of the assets of the organization, association, or business.

300.10 Ultimate use

Ultimate use means the final purpose for which a licensed organization uses the proceeds or profits of a lottery by the sale of pickle cards. For expenses incurred by the organization, the ultimate use of pickle card proceeds to pay the expenses means payment directly to the individual, business or corporation with whom the organization incurred that particular expense. In the case of a lawful purpose donation, the ultimate use of pickle card net profits means that those monies are donated or directed by the licensed organization directly to the final recipient for the lawful purpose intended by the organization.

300.11 Unit cost

Unit cost means those costs incurred by a licensed organization connected with the purchase of a pickle card unit. Unit cost consists of the cost of the unit itself, the pickle card tax, any applicable sales or use tax, any federal gaming tax for which a licensed organization may be liable, the imprinting fee charged by a licensed distributor, and any shipping or delivery fee if invoiced from the distributor to the licensed organization.

300.12 Youth Amateur Athletics or Youth Sports

Youth Amateur Athletics or Youth Sports means activities sponsored by an organization which organizes, supervises, or administers team or individual activities consisting of an element of enjoyment or recreation involving the practice of individual skill and in which all those participating on the team or in an individual activity are under the age of 19.

Notes

316 Neb. Admin. Code, 35, § 300

Sections 9 - 305.01, 9 - 306, 9 - 308, 9 - 308.01, 9 - 309, 9 - 314, 9 - 314.01, 9 - 321.01, 9 - 322, 9 - 326, 9 - 327, 9 - 329.01, 9 - 329.02, 9 - 329.03, 9 - 329.04, 9 - 336, 9 - 340, 9 - 344, 9 - 345.02, 9 - 345.03, 9 - 346 and 9 - 348, R.R.S. 2007 and sections 9 - 347 and 9 - 347.01, R.S. Supp., 2009. November 6, 2010.