Section 316-35-400 - SCOPE, ELIGIBILITY, AND LICENSING REQUIREMENTS400.01 Bingo, Lottery, Raffle, and Lottery by Pickle Card Regulations 35-400 through 35-409 are adopted to carry out the provisions of the Nebraska Lottery and Raffle Act.400.02 A nonprofit organization, volunteer fire company, or volunteer first-aid, rescue, ambulance, or emergency squad who wishes to conduct any lottery with gross proceeds in excess of $1,000.00 or any raffle with gross proceeds in excess of $5,000.00 must first apply for and obtain a license from the Department. Such license shall be applied for on a form prescribed by the Department and be accompanied by the appropriate fees. Lottery and raffle licenses shall expire and may be renewed on a biennial basis, according to the following schedule: 400.02A A license to conduct a lottery or raffle 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 for such nonprofit organization shall expire on September 30 of each odd-numbered year.400.02B A license to conduct a lottery or raffle issued to a nonprofit organization holding a certificate of exemption under any other subsection of section 501 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 for such nonprofit organization or volunteer fire company or volunteer first-aid, rescue, ambulance, or emergency squad shall expire on September 30 of each even-numbered year.400.02C A licensed organization wishing to renew its license must submit its application for renewal at least thirty (30) days prior to the date the organization intends to begin selling lottery or raffle tickets in the new licensing period. Licenses are not transferable.400.03 The determination as to whether a license will be required shall be based upon the potential gross proceeds desired from the lottery or raffle activity. Potential gross proceeds shall be determined by multiplying the number of tickets to be sold by the selling price of a single ticket. The value of any free tickets shall be included in the determination of potential gross proceeds. For purposes of determining potential gross proceeds, each ticket shall be calculated at its individual selling price before the application of any discount for the purchase of two or more tickets. 400.03A If the selling price of an admission to an event, or the purchase price of a meal, calendar or similar such item includes an opportunity to participate in a lottery or raffle, the gross proceeds of the lottery or raffle shall be based upon the full selling price of the ticket, without a reduction for the cost of the admission or other tangible item connected with the purchase of the lottery or raffle ticket. For example, if a person purchases a ticket to a dinner at the cost of $ 100.00 and that ticket enters the person in a lottery or raffle drawing, then the gross proceeds of the lottery or raffle activity shall be based upon the full $ 100.00 selling price of the ticket.400.03B However, if, for example, the organization sells lottery or raffle tickets separately from the dinner ticket and a person is not required to be present in order to win a prize, then the organization may base the determination of the gross proceeds on the cost of the lottery or raffle ticket alone.400.04 Organizations that will not exceed the gross proceeds thresholds as described in Regulation 35-400.02 are not required to be licensed and shall adhere to the requirements set forth under the Nebraska Small Lottery and Raffle Act and Regulations 35-500 through 35-504.400.05 It shall be the responsibility of the licensed organization to keep the information contained on its application current. The Department must be informed within thirty (30) days of any changes in the information supplied by the licensee in its most recent filing with the Department. 400.05A Changes can be reported by filing a new application identifying only the information to be changed. Those changes must be confirmed by the signature of an officer or utilization of funds member. All persons signing the most current application shall obligate the licensee to comply with the Nebraska Lottery and Raffle Act and regulations for that licensing period.400.06 A nonprofit organization, volunteer fire company, or volunteer first-aid, rescue, ambulance, or emergency squad applying for a lottery and raffle license shall be incorporated in this state as a nonprofit corporation or organized in this state as a religious or nonprofit organization.400.06A In order for a nonprofit corporation to qualify for a license, it shall be incorporated in Nebraska. A corporation incorporated in a foreign state holding a certificate of authority to conduct affairs in Nebraska is not considered to be incorporated in Nebraska and shall not qualify for a license. A corporation incorporated in a foreign state which has domesticated under sections 21-1966.01 or 21-1966.03, R.R.S. 1943, shall be considered incorporated in Nebraska and may qualify for a license. In order for a nonprofit organization other than a corporation to qualify for a license, it shall be organized or established in Nebraska.400.07 Any nonprofit organization holding a certificate of exemption under section 501 of the Internal Revenue Code or any volunteer fire company or volunteer first-aid, rescue, ambulance, or emergency squad may apply for a license to conduct a lottery or raffle. 400.07A A nonprofit organization is considered exempt under section 501 of the Internal Revenue Code if it can provide a copy of the exemption ruling or exemption determination letter issued by the Internal Revenue Service when making application for an initial license. The proof of exemption is not required to be filed with a subsequent application by the organization to renew an existing license to conduct a lottery or raffle unless the circumstances under which the exemption was issued or the nature of the organization has changed substantially to the extent that the exempt status may no longer be applicable or the Department specifically requests the exemption determination letter. 400.07A(1) An organization may be exempt under a group exemption letter issued by the Internal Revenue Service. A group exemption letter is a ruling or determination letter issued to a parent organization. A group exemption letter recognizes, on a group basis, the exemption under section 501(c) of the subordinate organizations on whose behalf the parent organization has applied for recognition of exemption. A parent organization is an organization that has one or more subordinates under its general supervision or control. A subordinate is a chapter, local, post, or unit of a parent organization. Examples: American Legion, Veterans of Foreign Wars, Fraternal Order of Eagles. Under these circumstances, a subordinate organization applying for an initial license must provide the Department with a copy of the group exemption letter issued to the parent organization or indicate the Group Exemption Number (GEN).400.08 In addition to all other information requested by the Department, each applicant for a lottery and raffle license and each subsequent renewal thereof may, at the discretion of the Department, be required to provide: 400.08A 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 sets forth the organization's structure and purpose; or400.08B A current roster of all active members.400.09 The Department may also require the organization seeking a license to produce evidence of activities other than lotteries and raffles conducted by the organization's membership.400.10 A nonprofit organization, volunteer fire company, volunteer first-aid, rescue, ambulance, or emergency squad, or individual applying to be a utilization of funds member shall not be considered licensed until such organization or individual has physical possession of the license issued by the Department. An organization may not begin to sell lottery or raffle tickets until it has received its license. 400.10A A licensed organization or utilization of funds member who has had its license lost, stolen, or destroyed must notify the Department as soon as possible. A duplicate license will be issued. No additional fee is required under such circumstances.400.10B A licensed organization or utilization of funds member who no longer desires to be licensed shall notify the Department in writing of their intentions to cancel their license. Such notification shall be signed by an officer of the organization. A notification of license cancellation shall be accompanied by the original licenses issued by the Department. 400.10C In the event that a license under the Nebraska Lottery and Raffle Act is suspended, canceled, or revoked, the licensee shall surrender physical possession of such license(s) 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 Lottery and Raffle Act unless otherwise authorized by the Department. 400.10C(1) When a licensee has successfully appealed an order of suspension, revocation, or cancellation, the Department shall return physical possession of the licenses which have been suspended, revoked, or canceled.400.11 In addition to the licensing requirements by the Department, no licensed organization may conduct a lottery or raffle in Douglas or Lancaster Counties or the cities of Omaha or Lincoln until specific authorization has been granted by ordinance or resolution. Other counties or incorporated municipalities may by resolution or ordinance regulate, control, or prohibit any lottery or raffle. No county or incorporated municipality may authorize a lottery or raffle which has not been approved and licensed by the Department.316 Neb. Admin. Code, 35, § 400