309.01 Any sole
proprietorship, partnership, limited liability company, or corporation seeking
to sell pickle cards on behalf of a Class II pickle card licensee must first
apply for and obtain a pickle card operator's license. Such license shall be
applied for on a form prescribed by the Department. The pickle card operator's
license fee must be paid by the applicant for the license and shall not be paid
or reimbursed by a licensed organization or any of the organization's agents or
employees. To be eligible for a pickle card operator's license the applicant
shall:
309.01A Hold a retailer's license for
consumption on the premises issued by the Nebraska Liquor Control Commission;
or
309.01B Hold a retailer's
license for consumption off the premises issued by the Nebraska Liquor Control
Commission
309.02
Designated Premises
An applicant for a pickle card operator's license shall
designate on the application a particular premises at which the pickle cards
will be sold. The license issued shall only be valid for that area described
which shall not be greater than the area covered by the applicant's liquor
license. No pickle cards may be sold by a pickle card operator at any location
other than the one designated on the license application filed with the
Department, nor may pickle cards be sold on any area of land surrounding the
premises of the pickle card operator even if the pickle card operator's liquor
license extends outside the premises or building. For example, no pickle cards
may be sold by a pickle card operator in its "beer garden" located outside of
its premises or building.
309.02A A
pickle card operator's license shall cover all employees at the premises
designated on the license application filed with the Department.
309.02B A pickle card operator's license may
not be transferred under any circumstances including change of ownership. A
change of stock ownership in a corporation which does not result in any
individual or business becoming a holder directly or beneficially of ten
percent or more of any class of stock in the corporation, who did not hold such
an interest prior to the change in ownership does not constitute a change of
ownership.
309.02B(1) When a change of
ownership of a business licensed as a pickle card operator is anticipated, the
current owner(s) of the business may designate as his or her agent, the party
purchasing the business. In order to be designated as an agent, a temporary
agency agreement must be filed with the Nebraska Liquor Control Commission
pursuant to its regulations. Throughout the duration of the temporary agency
agreement, the designated agent may sell pickle cards using the current owner's
pickle card operator license. Once the sale of the business has been completed,
and a liquor license has been issued to the party purchasing the pickle card
operator, the new owner(s) must obtain their own pickle card operator license.
The new ownership may not sell pickle cards using the license of the previous
owner(s) after the temporary agency agreement has been terminated and the new
ownership has obtained their own liquor license, whichever comes first.
309.02C It shall be the
responsibility of the pickle card operator to keep the information filed on its
license application current. The Department must be notified within thirty (30)
days of any changes to the application information.
309.02C(1) Changes must be reported in
writing and the Department may require the filing of a new application. Changes
must be confirmed by the signature of an owner, partner, member, or officer of
the pickle card operator. Any individual signing the most current application
filed shall obligate the licensee to comply with the Nebraska Pickle Card
Lottery Act and regulations for that licensing period.
309.03 Pickle Card
Operator's License Expiration and Renewal
A pickle card operator's license shall expire on September
30 of every odd-numbered year and may be renewed biennially. Additionally, any
authorizations to sell pickle cards on behalf of a licensed organization issued
to a licensed organization for a pickle card operator shall become invalid upon
the expiration of the pickle card operator's license and may be renewed
biennially. The pickle card operator's application for license renewal shall be
due 60 days prior to the expiration date of the license.
309.04 Authorization to Sell Pickle Cards
A licensed pickle card operator shall not sell individual
pickle cards on behalf of a licensed organization until it has physical
possession of an authorization issued by the Department to sell pickle cards on
behalf of that organization. A licensed organization must apply to the
Department for such authorization on a form prescribed by the Department. Such
application form shall be signed by the utilization of funds member of that
organization and an owner, partner, member, or officer of the licensed pickle
card operator.
309.05 Pickle
Card Operator's License and Authorization to be Posted
The pickle card operator's license and authorization to
sell pickle cards for each licensed organization must be posted prominently at
the specific location for which it was issued before the pickle card operator
may sell pickle cards on a retail basis. The pickle card operator must post its
original license and authorization(s) issued by the Department at the location
where the majority of pickle cards are sold. A copy of the license or
authorization(s) shall not be substituted for the original.
309.05A A pickle card operator who has had
its license or authorization(s) lost, stolen, or destroyed must notify the
Department as soon as possible. A duplicate license or authorization will be
issued for no additional fee.
309.05B A pickle card operator who no longer
desires to be licensed shall notify the Department, in writing, of their
intention to cancel their license. A notification of cancellation must be
accompanied by the original license and all authorizations issued by the
Department.
309.05C In the event
that a pickle card operator's license is suspended, canceled, or revoked, the
pickle card operator shall surrender physical possession of its license,
authorizations and all pickle cards and pickle card units to the Department
immediately upon receipt of the order of suspension, cancellation or
revocation.
309.05C(1) Suspensions. The
Department will return the license and authorizations, and all pickle cards and
pickle card units, to the pickle card operator at the end of the suspension
period.
309.05C(2) Cancellations.
The former licensee may reapply for a pickle card operator's license when the
period of cancellation expires.
309.05C(3) Revocations. The former licensed
pickle card operator 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
309.05D When
a licensed pickle card operator successfully appeals an order of suspension,
revocation, or cancellation, the Department will return the license and
authorizations which were surrendered to the Department.
309.06 Method of Payment
The definite profit, less the licensed pickle card
operator's commission, of each pickle card unit received by a licensed pickle
card operator must be paid for by a check made payable to the licensed
organization, either in advance of, or upon delivery of, the pickle card unit
to the pickle card operator. It is a violation of these regulations for a
licensed pickle card operator to receive credit in any form when receiving a
pickle card unit from a licensed organization, including but not limited to,
post-dating of a check written by the licensed pickle card operator or holding
a check written by the licensed pickle card operator by the licensed
organization, sales agent, or utilization of funds member.
309.06A To satisfy the payment by check
requirement, a pickle card operator must make payment by a check written from
the business account of the pickle card operator, or by a personal check
written by an owner, officer, member, or partner of the pickle card
operator.
309.06B Payment by money
order, certified check, credit card, or any other method is prohibited, unless
otherwise authorized by the Department.
309.07 Receipt Requirements
With each delivery of pickle card units to a licensed
pickle card operator, the licensed sales agent must ensure that a receipt to
the operator is included.
309.07A
These receipts must be on a form prescribed by the Department and must contain
the following information either on the prescribed form or on an attachment to
the form which has been approved by the Department:
309.07A(1) The name of the licensed
organization;
309.07A(2) The name,
address, and Nebraska ID number of the licensed pickle card operator;
309.07A(3) A description of the pickle card
units sold, including the name of the game, form number, and serial
number;
309.07A(4) The gross
proceeds and definite profit of each unit;
309.07A(5) The licensed pickle card
operator's commission from each unit;
309.07A(6) The check number, the date of the
check, and amount of the check issued from the licensed pickle card operator to
the licensed organization; and
309.07A(7) The signatures of the sales agent
of the licensed organization certifying receipt of payment and of the licensed
pickle card operator certifying receipt of the pickle card units and the date
of sale.
309.07B Both
the pickle card units delivered and the receipt or a copy issued by the sales
agent must be physically present at the pickle card operator's premises until
the units are fully sold.
309.08 An applicant for a pickle card
operator's license is responsible for and must pay its own license fee. The
licensed pickle card operator is also responsible for any other expenses it
incurs in connection with the sale of pickle cards on behalf of a licensed
organization, including registering pickle card dispensing devices with the
Department and obtaining registration decals from the Department.
309.09 Revenue Limitation
No licensed pickle card operator can generate annual
revenue from the sale of individual pickle cards which exceeds the annual
revenue generated from its other retail sales.
309.09A For the purposes of this regulation,
"revenue generated from other retail sales" means the gross income received
from the sale of goods and services not including revenues generated from
charitable gaming activities and "revenue from the sale of individual pickle
cards" means the licensed pickle card operator's commission from the sale of
all pickle cards.
309.09B For
example, if a licensed pickle card operator receives $500,000 from the sale of
all goods and services except pickle card sales at its place of business prior
to the expenses of operating that business, its revenue generated from other
retail sales is $500,000. That amount will be compared with its commissions
from the sale of pickle cards during the same annual period.
309.10 Prohibition of Multiple
Interests
An owner, partner, member, or officer of a licensed pickle
card operator cannot act or be licensed as a utilization of funds member or
sales agent for any licensed organization conducting a lottery by the sale of
pickle cards. This does not exclude an employee of a licensed pickle card
operator from acting as a utilization of funds member for a licensed
organization to which the employee belongs. No licensed pickle card operator
can have a substantial interest, as defined in Reg-35-300.09, in any
individual, partnership, firm, corporation, or other party licensed as a
distributor or a manufacturer
309.11 Returning Pickle Card Units
Prior to placing a pickle card unit in play, the licensed
pickle card operator may return the unit to the licensed organization or its
sales agent and the licensed organization may refund the amount paid by the
pickle card operator for that pickle card unit. The refund transaction must be
reflected on all copies of the original receipt.
309.11A If the returned pickle card unit is
delivered to another licensed pickle card operator by the licensed
organization, the expenses incurred by the licensed organization in connection
with the re-marketing of that pickle card unit must be applied to the
organization's allowable expense limitation on resale.
309.12 Limitation on Consideration for
Selling Pickle Cards
No licensed pickle card operator can receive any additional
consideration, in any form, directly or indirectly, over and above the 30% of
definite profit pickle card operator's commission limitation, from any
individual or organization; or any member, employee, or agent of any licensed
organization, as an inducement to sell pickle cards.
309.13 Suspension of Liquor License
If a licensed pickle card operator has its retail liquor
license temporarily suspended, it no longer meets the licensing requirements
for a pickle card operator. During the period its liquor license is suspended,
it cannot sell pickle cards. When the suspension is lifted, the pickle card
operator may resume selling pickle cards.
