316 Neb. Admin. Code, 35, § 302 - LICENSE REQUIREMENTS FOR CLASS I AND CLASS II LOTTERY BY SALE OF PICKLE CARDS

302.01 A nonprofit organization, volunteer fire company, or volunteer first - aid, rescue, ambulance, or emergency squad shall not conduct a lottery by the sale of pickle cards without first obtaining a license. Such license shall be applied for on a form prescribed by the Department. Eligible organizations seeking a license to conduct a lottery by the sale of pickle cards may apply for either a Class I or Class II license. The class of license which an organization is granted shall be determined by the manner in which the organization intends to market its pickle cards.

302.01A Organizations which intend to sell pickle cards only at their designated premises and/or at their regularly scheduled or limited period bingo occasions, shall apply for a Class I license. Such organizations cannot sell pickle cards through licensed pickle card operators and do not need to license a sales agent. If, during the course of the licensing period the organization wishes to begin marketing pickle card units through licensed pickle card operators, the organization must first apply for and obtain a Class II license. Such application shall be made on a form prescribed by the Department, and the organization shall pay the difference in license fees between a Class I and Class II license and shall license at least one sales agent

302.01B Organizations seeking to market pickle card units through licensed pickle card operators shall apply for a Class II license. An organization applying for a Class II license must license at least one sales agent. In addition, a Class II pickle card organization must apply to the Department for authorization for each pickle card operator they intend to have sell pickle cards on their behalf. Such authorization must be applied for on a form prescribed by the Department and signed by the utilization of funds member of the licensed organization and an owner, partner or officer of the pickle card operator.

302.02 A Class II licensee may apply for authorization to market pickle cards through any organization or business which has obtained a pickle card operator's license issued by the Department. A pickle card operator may only market pickle cards on behalf of organizations holding a Class II license to conduct a lottery by the sale of pickle cards.

302.02A Prior to selling any pickle card units to a pickle card operator, the licensed organization must receive a pickle card operator authorization issued by the Department, allowing the pickle card operator to sell pickle cards on behalf of that licensed organization. Such authorizations are to be applied for by the licensed organization and shall, upon approval, be mailed to the licensed organization. The licensed organization shall provide the pickle card operator with the original authorization printed by the Department and shall not substitute a copy of the original. The organization is permitted to make a copy of such authorization for its own file.

302.03 It shall be the responsibility of the utilization of funds member to keep the organization's license application information current. The Department must be informed within thirty (30) days of any changes in the information supplied by the licensed organization in its most recent filing with the Department.

302.03A Changes must be reported in writing and the Department may require the filing of a new application or schedule. Changes must be confirmed by the signature of an officer or a utilization of funds member on the Nebraska Form 50; a utilization of funds member on the Nebraska Form 50, Schedule II; and a utilization of funds member and the sales agent on the Nebraska Form 50E. Any individual signing the most current application shall obligate the licensee to comply with the Nebraska Pickle Card Lottery Act and regulations for that licensing period.

302.04 In addition to all other information requested by the Department, each applicant for a Class I or Class II lottery by the sale of pickle card license and each subsequent renewal thereof may, at the discretion of the Department, be required to provide:

302.04A A copy of the organization's articles of incorporation or bylaws; or, if not a corporation, a copy of any bylaws or other documents which set forth the organization's structure and purpose;

302.04B A copy of the organization's ruling or exemption determination letter issued by the Internal Revenue Service. A blanket or group exemption letter issued by the Internal Revenue Service to a parent organization, which also covers its subordinate units, is acceptable. An organization utilizing the charter date of its parent organization to satisfy the five - year existence requirement may be required to submit additional information as evidence of such parent relationship as provided for in section 21 - 608 of the Nebraska Revised Statutes, as amended,; and/or

302.04C A current roster of all active members.

302.05 A nonprofit organization, volunteer fire company, volunteer first - aid, rescue, ambulance, or emergency squad, utilization of funds member, sales agent, and pickle card operator shall not be considered licensed until such organization, volunteer fire company, volunteer first - aid, rescue, ambulance, or emergency squad, individual, or business has physical possession of the printed license issued by the Department and shall not conduct any activity under the Nebraska Pickle Card Lottery Act until it has received its license and applicable authorizations.

302.05A A licensed organization must provide to each distributor from whom it purchases pickle card units, a copy of its current license or adequate proof that the organization has a current lottery by the sale of pickle card license. Adequate proof may include confirmation to the distributor by the Department that the organization holds a current license.

302.06 A licensed organization, sales agent, or utilization of funds member, which has had its license lost, stole n, or destroyed must notify the Department as soon as possible. A duplicate license will be issued for no additional fee.

302.06A Any licensed organization, utilization of funds member, or sales agent which no longer desires to be licensed, or any organization which desires to cancel an authorization for a pickle card operator to sell pickle cards on their behalf, shall notify the Department, in writing, of its intentions to cancel the license or authorization.

302.06A(1) Sales agents shall make such intentions known to the Department by completion of a Nebraska Form 50E or by a letter signed by the utilization of funds member;

302.06A(2) A licensed organization or utilization of funds member shall make, such intentions known to the Department by completion of a Form 50 or Form 50H respectively or by a letter signed by an officer of the organization; and

302.06A(3) A licensed organization shall make such intentions known to the Department by completion of a Form 50, Schedule II, signed by the utilization of funds member in the case of a pickle card operator authorization.

302.06B All notifications of cancellation must be accompanied by the original license or authorization issued by the Department.

302.07 In the event that a license to conduct gaming activities under the Nebraska Pickle Card Lottery Act is suspended, canceled, or revoked, the licensee shall surrender physical possession of all of its licenses suspended, canceled, or revoked to the Department immediately upon receipt of the order of suspension, cancellation, or revocation from the Department. In the case of suspension, the Department shall return the licenses to the licensee at the end of the suspension period. In the case of cancellation, the former licensee may reapply for a license when the period of cancellation has expired. In the case of revocation, the former licensee may not reapply for any license at any time in the future under the Nebraska Pickle Card Lottery Act unless otherwise authorized by the Department.

302.07A When a licensee has successfully appealed an order of suspension, revocation, or cancellation, the Department shall return physical possession of the license which had been suspended, revoked, or canceled.

302.08 All licenses issued to organizations to conduct a lottery by the sale of pickle cards and all licenses issued to any utilization of funds member or sales agent for such organizations shall expire and may be renewed on a biennial basis, according to the following schedule:

302.08A A license to conduct a lottery by the sale of pickle cards issued to a nonprofit organization holding a certificate of exemption under section 501(c)(3) or (c)(4) of the Internal Revenue Code and any license issued to a utilization of funds member or sales agent for such nonprofit organization shall expire on September 30 of each odd - numbered year.

302.08B A license to conduct a lottery by the sale of pickle cards issued to a nonprofit organization holding a certificate of exemption under section 501(c)(5), (c)(7), (c)(8), (c)(10) or (c)(19) of the Internal Revenue Code, or to any volunteer fire company or volunteer first - aid, rescue, ambulance, or emergency squad and any license issued to a utilization of funds member or sales agent for such organizations shall expire on September 3 0 of each even - numbered year.

302.08C Renewal applications for licensed organizations, utilization of funds members, and sales agents shall be due 45 days prior to the expiration date of the license unless the application, pertains only to special function pickle card sales. Licenses are not transferable.

Notes

316 Neb. Admin. Code, 35, § 302

Sections 9 - 327, 9 - 329.03, 9 - 330, and 9 - 340, R.R.S. 1997. Sections 9 - 321.03, 9 - 326, 9 - 328, 9 - 329, and 9 - 329.02, R.S.Supp., 2002. November 12, 2002.