316 Neb. Admin. Code, 35, § 308 - SALES AGENT: LICENSING REQUIREMENTS AND DUTIES

308.01 A Class II licensee must have at least one of its members licensed as a sales agent. To be eligible for a sales agent's license, an individual must have been an active and bona fide member of the organization for at least one year prior to applying for the license.

308.01A An individual may be licensed as a sales agent for only one licensed organization at any time. If an individual wishes to apply for a sales agent's license for a different organization, he or she must first obtain a written release signed by the utilization of funds member and at least one officer of the organization that the individual had previously been licensed for as a sales agent, prior to being eligible to apply for a license as a sales agent for another organization. Such release shall only be given to the individual if he or she has satisfied all of his or her legal obligations to the licensed organization with respect to the sale of pickle cards. An organization shall not arbitrarily and without good cause withhold or refuse to issue a release. A copy of the release must be included with any new application for a sales agent's license for another organization.

308.01B An individual licensed as a sales agent cannot hold any other type of license issued pursuant to the Nebraska Bingo Act, the Nebraska Lottery and Raffle Act, or the Nebraska Pickle Card Lottery Act.

308.02 An individual is not considered to be licensed as a sales agent and shall not conduct any activity for which such license is required until he or she has physical possession of the sales agent's license issued by the Department. An individual seeking a sales agent's license shall apply for such license on a form supplied by the Department. Such application shall contain, at a minimum, the following information:

308.02A The name and state identification number of the licensed organization;

308.02B The name, address, social security number, date of birth, and signature of the individual applying for the sales agent's license;

308.02C The date the individual became a member of the organization;

308.02D A statement signed by the licensed organization's utilization of funds member indicating its approval of the individual to act as a sales agent on behalf of the organization; and

308.02E The statutorily required license fee. Such fee may be paid by the licensed organization.

308.03 The information contained in the application shall be kept current. The sales agent shall notify the Department within thirty (30) days of any changes to the application information. Changes must be reported in writing and the Department may require the filing of a new application.

308.04 An individual applying for a sales agent's license is required to be fingerprinted for criminal background investigation purposes. Two sets of fingerprints on cards supplied by the Department must be submitted to the Nebraska State Patrol, Criminal Investigation Division, along with the required fees. Such fees may be paid by the licensed organization.

308.04A If an individual applying for a sales agent's license has been issued a license by the Nebraska Liquor Control Commission, the Department may, at its discretion, waive the fingerprinting requirement.

308.04B An individual renewing his or her sales agent's license shall not be required to submit additional fingerprint cards or pay additional fingerprinting fees unless specifically requested to do so by the Department.

308.05 A sales agent's license shall expire and may be renewed as provided in Regulation 35-302.08.

308.06 An individual licensed as a sales agent shall have the following responsibilities:

308.06A Ensuring that the licensed organization does not promise or represent to any licensed pickle card operator or potential pickle card operator that the organization he or she represents will pay or allow a pickle card operator or any other individual, firm, corporation, or organization any amount of money or anything else of value as a commission on a pickle card unit in excess of that amount allowed by law to market such units as an inducement for a pickle card operator or potential pickle card operator to sell pickle cards on behalf of the licensed organization;

308.06B Explaining to pickle card operators that the pickle card operator's license and the authorization to sell on behalf of the organization the sales agent represents must be conspicuously posted in order to sell pickle cards, as well as the flare card for each pickle card unit in play at that location;

308.06C Soliciting orders from pickle card operators to sell pickle cards on behalf of the licensed organization he or she is licensed to represent;

308.06D Ordering, picking up, and/or accepting delivery of pickle card units from licensed distributors or the licensed organization which he or she represents and delivering such units to licensed pickle card operators who are authorized to sell pickle cards on behalf of the licensed organization he or she is licensed to represent;

308.06D(1) A sales agent may order, but not purchase, pickle card units on behalf of a licensed organization. Only a licensed utilization of funds member may pay for the purchase of such units.

308.06D(2) A licensed sales agent may arrange delivery of pickle card units to a licensed pickle card operator by mail or common carrier provided the requirements of Regulation 35-308.06E and 35-308.06F are adhered to.

308.06E Collecting the check from a licensed pickle card operator representing the definite profit of each pickle card unit transferred from a licensed organization to a pickle card operator less the operator's commission either in advance of or upon delivery of those units and delivering that check to the utilization of funds member of the licensed organization he or she is licensed to represent; and

308.06F Keeping and maintaining an accurate record of the transactions between the licensed organization and the pickle card operators to whom the sales agent transfers pickle card units. Those records shall include the dates of delivery, the types of units transferred and their serial numbers, the amount of payment from the operator to the licensed organization, and the name of the individual making payment on behalf of the operator. The sales agent shall prepare and issue a standard receipt containing such information as prescribed by Regulation 35-309.07.

308.07 A licensed sales agent shall not hold a license as a pickle card operator. No sales agent shall have a substantial interest as defined in Regulation 35-300.09, in any pickle card operator.

308.07A No individual licensed as a sales agent shall be a director, manager, trustee, or member of any governing committee, board, or body of the licensed organization on whose behalf the sales agent is licensed, if that individual receives any compensation from the organization for his or her work as a sales agent. An ex officio board member who participates in the decision making responsibilities of the licensed organization may not be a compensated sales agent, regardless of the individual's voting capability. For the purposes of this regulation, compensation shall mean any payment, directly or indirectly from the organization to the sales agent in connection with the sales agent's work which relates to the organization's pickle card activity. Compensation shall not include reimbursement for reasonable and necessary expenses actually incurred by the sales agent in connection with the sale of pickle cards.

308.08 A licensed sales agent shall not act or be licensed as a utilization of funds member for any licensed organization.

Notes

316 Neb. Admin. Code, 35, § 308

Sections 9 - 320, 9 - 329.01, and 9 - 345.02, R.R.S. 1997 . Sections 9 - 1,104, 9 - 322, 9 - 329, 9 - 331, 9 - 340.02, and 9 - 347.01, R.S.Supp., 2002. November 12, 2002