Section 316-35-220 - MANUFACTURER OF BINGO EQUIPMENT: LICENSE; REQUIREMENTS; AND DUTIES220.01 Any individual or business which manufactures bingo equipment and intends to sell, rent, lease, or otherwise provide such equipment in this state, must first obtain a manufacturer's license from the Department. A manufacturer's license shall not be required of: 220.01A An individual or business which manufactures or intends to sell only bingo supplies such as ink daubers, chips, tape, or glue sticks; or 220.01B An individual or business which manufactures electronic equipment which is not an integral part of the conduct of bingo such as television monitoring systems, computer terminals or printers, or cash registers.220.02 A manufacturer's license shall only be issued to those applicants doing business in Nebraska or authorized to do business in Nebraska.. 220.02A Authorization to do business in Nebraska requires: 220.02A(1) A domestic corporation to file Articles of Incorporation with the Nebraska Secretary of State's office;220.02A(2) A domestic limited liability company to file Articles of Organization with the Nebraska Secretary of State's office;220.02A(3) A foreign corporation or foreign limited liability company to obtain a certificate of authority to transact business in Nebraska from the Nebraska Secretary of State's office or to become domesticated by filing the required documents with the Nebraska Secretary of State's office and paying any required fees; or220.02A(4) A domestic partnership, foreign partnership, or limited liability partnership to file any forms that may be required by the Nebraska Secretary of State's office. 220.02B Applicants seeking a manufacturer's license and who intend to be engaged in business in this state as defined in section 77-2702.06 of the Nebraska Revised Statutes, as amended, shall also submit a Nebraska Tax Application, Form 20, to obtain a Nebraska Sales and Use Tax Permit. 220.02B(1) A licensed manufacturer engaged in business in this state as defined in section 77 - 2702.0 6 may accept a properly completed Resale Certificate, Section A, of the Nebraska Resale and Exempt Sale Certificate, Form 13, from a licensed distributor in Nebraska, in lieu of charging and collecting sales tax from the distributor.220.03 An individual or business shall apply for and obtain a manufacturer's license from the Department prior to supplying any bingo equipment in this state, or engaging in any interstate activities relating to such bingo equipment. The applicant shall include with the application form prescribed by the Department the statutorily required license fee and, at a minimum, the following information: 220.03A The business name and address of the applicant and the name and address of each of the applicant's separate locations at which manufacturing, warehousing, selling, or promotion of bingo equipment occurs; 220.03B The type of ownership of the business and the name, social security number, home address, and date of birth of: 220.03B(1) If a sole proprietorship, the individual owner; 220.03B(2) If a partnership, each partner and spouse;220.03B(3) If a limited liability company, each member and spouse; 220.03B(4) If a corporation, each officer and spouse, each director or board member, and each individual or entity holding ten percent or more of the debt or equity of the corporation. If an entity holding ten percent or more of the debt or equity of the applicant corporation is a partnership, limited liability company, or corporation, the information required in Regulation 35 - 220.03B must be supplied for each partner of the partnership, each member of the limited liability company, or each officer of the corporation and every individual or entity holding ten percent or more of the debt or equity of the partnership or corporation. 220.03C If the applicant is not a resident or a corporation, the full name, business address, and home address of an individual who is a resident of and living in this state who is 19 years of age or older, to act as the manufacturer's resident agent for the purpose of receipt and acceptance of service of process and other communications on behalf of the manufacturer;220.03D Upon request, a list of all Nebraska licensed distributors in which the applicant has some financial interest and the details of such interest. For purposes of this regulation, financial interest shall include, among all other interests, any indebtedness from the applicant to another individual or business or from another individual or business to the applicant i n excess of $ 500.00;220.03E A completed and notarized Personal History Record and Background Disclosure form supplied by the Department for each individual listed pursuant to Regulation 35 - 220.02B except for spouses who have completed and had notarized the Affidavit by Spouse for Waiver of Fingerprinting and/or Personal History Record and Background Disclosure form; and220.03F Two sets of fingerprints on cards supplied by the Department and the requisite fees established by the Nebraska State Patrol and Federal Bureau of Investigation for each individual listed pursuant to Regulation 35 - 220.02B, except for spouses who have completed and had notarized the Affidavit by Spouse for Waiver of Fingerprinting and/or Personal History Record and Background Disclosure form. Fingerprint cards and the required fees must be submitted to the Nebraska State Patrol, Criminal Identification Division.220.04 The applicant or licensee shall notify the Department within thirty (30) days of any change in the information submitted on or with the application form. 220.04A Changes must be reported in writing, and the Department may require the filing of a new application. 220.04A Changes must be reported in writing, and the Department may require the filing of a new application.220.04B Changes shall be confirmed by the signature of an owner, officer, member, or partner of the manufacturer. Any individual signing the most current application shall obligate the licensee to comply with the Nebraska Bingo Act and accompanying regulations for that licensing period.220.05 A manufacturer's license shall expire on September 30 of every odd - numbered year and may be renewed biennially. An application for license renewal shall be due 45 days prior to the expiration date of the license. A manufacturer's license is not transferable. 220.06 A manufacturer is not considered licensed until it has physical possession of the printed license issued by the Department. 220.06A A manufacturer which has had its license lost, stolen, or destroyed must notify the Department as soon as possible. The manufacturer shall send a written statement to the Department signed by an owner, officer, member, or partner confirming the loss, theft, or destruction of the license. A duplicate license will be issued for no additional fee under such circumstances.220.06B Any individual or business licensed as a manufacturer pursuant to section 9 - 332 of the Nebraska Pickle Card Lottery Act may act as a manufacturer pursuant to the Nebraska Bingo Act without submitting an additional licensing fee. Such individual or business shall comply in every other respect with the Nebraska Bingo Act, the Nebraska Pickle Card Lottery Act, and all rules and regulations adopted and promulgated pursuant to such Acts.220.06C A manufacturer which no longer desires to be licensed shall notify the Department, in writing, of its intention to cancel its license. Such notification shall be signed by an owner, officer, member, or partner of the manufacturer. A notification of cancellation shall be accompanied by the original license issued by the Department.220.07 A licensed manufacturer, or any person having a substantial interest therein, is prohibited from holding any other licenses issued pursuant to the Nebraska Bingo Act, the Nebraska Pickle Card Lottery Act, the Nebraska Lottery and Raffle Act, or the Nebraska County and City Lottery Act, except as provided in section 9 - 332 of the Nebraska Pickle Card Lottery Act, and section 9 - 632 of the Nebraska County and City Lottery Act. 220.07A A licensed manufacturer or employee or spouse of a licensed manufacturer shall not have a substantial interest, as defined in Regulation 35 - 200.20, in any other manufacturer, distributor, manufacturer - distributor, licensed organization, or lottery operator conducting gaming activities under the Nebraska Bingo Act, the Nebraska Pickle Card Lottery Act, the Nebraska Lottery and Raffle Act, or the Nebraska County and City Lottery Act. 220.08 A licensed manufacturer or employee or spouse of a licensed manufacturer shall not participate in the operation or conduct of any kind of gaming activity regulated under Chapter 9 of the Nebraska Revised Statutes, except to the exclusive extent of his or her duties as a licensed manufacturer or employee thereof.220.09 Unless specifically authorized by the Department, a licensed manufacturer shall not sell or otherwise provide bingo equipment in Nebraska to anyone other than a licensed distributor. Nothing in this regulation shall be construed to prohibit a licensed manufacturer from: 220.09A Selling or otherwise providing bingo equipment to a federally recognized Indian tribe; or 220.09B Selling or otherwise providing bingo equipment, excluding disposable paper bingo cards, to a qualifying nonprofit organization conducting special event bingo as defined in Regulation 35 - 222. 220.10 The price charged by a licensed manufacturer for bingo equipment shall not be fixed or set by agreement among licensed manufacturers in any manner, either expressed or implied.220.10A No manufacturer shall offer or agree to offer anything of value to any individual or licensee in exchange for an agreement or commitment by such individual or licensee to exclusively buy, sell, or use bingo equipment sold by such manufacturer.220.10B No individual or licensee shall accept or agree to accept anything of value from a manufacturer in exchange for an agreement or commitment by such individual or licensee to exclusively buy, sell, or use bingo equipment sold by such manufacturer.220.11 A licensed manufacturer shall not be connected, interested, or otherwise concerned directly or indirectly with any individual or business licensed as a distributor or commercial lessor.220.12 No manufacturer shall affix to any bingo supply or equipment any statement indicating any endorsement of that particular bingo supply or equipment by the State of Nebraska, the Department, or any division thereof. Additionally, no other statement indicating any such endorsement shall be made verbally or in writing.220.13 Only a licensed manufacturer shall produce by assembling from raw materials or subparts a whole or partial piece of bingo equipment. 220.13A Nothing in this regulation shall prohibit a licensed manufacturer, with prior approval by the Department, from subcontracting services with an individual or business to assemble, manufacture, produce, make, print, convert, or modify bingo equipment to be used in a bingo game regulated by the Nebraska Bingo Act; however, the Department may require such subcontracting entity to first apply for and obtain a manufacturer's license. This shall include, but not be limited to: 220.13A(1) The printing of disposable paper bingo cards and the printing and assembly of hard bingo cards or shutter cards; 220.13A(2) The placing of face numbers, serial numbers, or sequential numbers on any disposable paper bingo card, hard card, or shutter card;220.13A(3) The development or modification of any proprietary computer program which is used in and is an integral part of a bingo card monitoring device, site system, or host system to conduct or play bingo; and 220.13A(4) The manufacturing of bingo balls or the printing of numbers or colors on such balls. 220.13B For purposes of this regulation, day - to - day maintenance or upkeep of bingo equipment such as replacing a light bulb or electrical plug, inserting or removing balls from a blower machine, or other routine maintenance conducted by the licensed organization shall not be prohibited.220.13C Nothing in this regulation shall be construed to prohibit: 220.13C(1) A licensed distributor from obtaining disposable bingo paper from a licensed manufacturer and cutting and assembling such paper into booklets, packets, or single sheets, for resale to licensed organizations; or220.13C(2) The conversion of an electronic facsimile of a bingo card by a licensed organization's site system to a printout containing the cards and corresponding face numbers loaded into a bingo card monitoring device.220.14 A manufacturer shall issue an invoice for each transaction involving bingo supplies or equipment. The invoice shall contain the following information: 220.14A The name and complete address of the purchaser;220.14B The date of the invoice and an invoice number;220.14C A complete description of the bingo supply or equipment, including the serial number (if applicable) and for all transactions involving disposable paper bingo cards: 220.14C(1) A complete description, including color, of the bingo card or packet (e.g., 3 ON Red booklet, 6 ON Blue booklet, 3 ON Green specials, instant bingo cards in singles, doubles, triples, etc.);220.14C(2) The quantity sold, returned, or exchanged (e.g., number of packets per case, or total number of sheets for instant bingo cards and specials); and220.14C(3) The serial numbers of the bingo cards or packets (if in packets, the serial number of the top sheet of the packet; for instant bingo cards, the serial number of the series); 220.14D The price charged for the bingo supply or equipment and the total amount to be paid, exchanged, or returned by the distributor; and220.14E The manner of delivery or shipment, including the name of the individual, firm, or corporation with whom shipment or delivery is made.220.15 A licensed manufacturer must receive Departmental approval, prior to offering for resale in Nebraska, for any type of bingo card which does not comply with or which has additional features to those described in Regulation 35 - 200.09C(1) or 35 - 200.09C(2). Approval by the Department shall be based upon, but not limited to, the manufacture, assembly, and packaging of the bingo cards and any other specifications imposed by the Nebraska Bingo Act or regulations.220.16 A licensed manufacturer shall be required to keep the following records: 220.16A Copies of all invoices for the sale, return, exchange, rental, or lease of bingo supplies and equipment to licensed distributors and any other individual or business located in this state; and 220.16B Copies of all rental, lease, or other contractual agreements relating to bingo supplies and equipment between the manufacturer and a licensed distributor or any other individual or business in this state. 220.17 All records required by this regulation shall be maintained for a period of not less than three years from the last day of the manufacturer's fiscal year. The Department may request periodic reporting from a licensed manufacturer regarding any information required to be kept by this regulation.316 Neb. Admin. Code, 35, § 220
Sections 77 - 2702.06, 77 - 2702.08, 77 - 2702.16, 77 - 2704. 11, 77 - 2705, 77 - 2706, and 77 - 2708, R.R.S. 2003. Sections 9 - 202, 9 - 207.01, 9 - 209, 9 - 212, 9 - 217.01, 9 - 224, 9 - 241.07, 9 - 241.08, 9 - 255.01, 9 - 255.07, 9 - 255.09, 9 - 255.10, 9 - 332, and 9 - 616, R.R.S. 1997. Sections 9 - 1,104, 9 - 204, 9 - 204.01, 9 - 204.04, 9 - 213, 9 - 214. 01, 9 - 226, 9 - 230.01, 9 - 241.10, 9 - 255.08, 77 - 2703, 77 - 2704.12, and 77 - 2704.15, R.S.Supp., 2004. September 5, 2005.