Section 316-35-201 - QUALIFICATION FOR LICENSE TO CONDUCT BINGO201.01 Any nonprofit organization, volunteer fire company, or volunteer first-aid, rescue, ambulance, or emergency squad applying for a bingo license shall be incorporated in this state as a nonprofit corporation or organized or established in this state as a religious or nonprofit organization. 201.01A An organization 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.201.01B A corporation incorporated in a foreign state which has domesticated in this state shall not be considered incorporated in Nebraska and shall not qualify for a license.201.02 Any nonprofit organization holding a certificate of exemption under sections 501(c)(3), (4), (5), (8), (10), or (19) of the Internal Revenue Code or any volunteer fire company or volunteer first-aid, rescue, ambulance, or emergency squad is eligible to apply for and obtain a license to conduct bingo. 201.02A 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. 201.02A(1) Subsequent application by an organization to renew its bingo license is not required to be accompanied by the proof of exemption unless the circumstances under which the exemption was issued or the nature of the licensed organization have changed substantially to the extent that the exempt status may no longer be applicable, or the Department specifically requests the exemption determination letter. 201.02B 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 recognizing 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. 201.02B(1) A parent organization is an organization that has one or more subordinates under its general supervision or control.201.02B(2) A subordinate is a chapter, local, post, or unit of a parent organization, such as the American Legion, Veterans of Foreign Wars, or Fraternal Order of Eagles.201.02B(3) 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).201.03 Limitations on licenses between related organizations. Each nonprofit organization, volunteer fire company, or volunteer first-aid, rescue, ambulance, or emergency squad wishing to conduct bingo must obtain its own license. Related organizations may not use a license obtained by one organization to conduct bingo on behalf of one or more related organizations. For example, the auxiliary of a Veterans of Foreign Wars post must obtain its own license and cannot use the bingo license of the post. Related organizations, each conducting separate bingo occasions, must obtain separate licenses.201.03A For purposes of this regulation, related organization means: 201.03A(1) An organization affiliated with, and organized in accordance with, the bylaws and regulations formulated by a companion or parent organization; and201.03A(2) At least seventy-five percent of the members of one organization are either members of the parent or companion organization, spouses of members of the parent or companion organization, or are the parents, children, brothers, sisters, grandparents, or grandchildren of a member of the parent or companion organization. 201.03B Related or unrelated organizations may conduct a co-sponsored bingo game, provided each organization applies for and obtains its own bingo license from the Department.201.04 In addition to the requirements contained in Regulations 35201.01 and 35-201.02, to be eligible for a bingo license an organization, volunteer fire company, or volunteer first-aid, rescue, ambulance, or emergency squad must have been in existence in this state for at least five years immediately preceding its application for a license and have had an active and bona fide membership engaged in furthering a lawful purpose during that period.201.04A To verify the applicant organization's five-year existence, the Department may require the applicant organization to provide additional documentation which includes, but is not limited to, any of the following: 201.04A(1) Dated bylaws of the applicant organization;201.04A(2) Dated Articles of Incorporation of the applicant organization;201.04A(3) Dated minutes of the applicant organization's meetings;201.04A(4) Dated charter of the applicant organization; or201.04A(5) Other dated documents of the applicant organization which would provide evidence of the organization's existence and the purposes for which it was organized. 201.04B An organization defined in section 21-608 of the Nebraska Revised Statutes, as amended, which is chartered in Nebraska under a state, grand, supreme, national, or other governing body may use the charter date of its parent organization to satisfy the five-year existence requirement.201.05 The Department may also require an applicant organization to produce evidence of charitable or community betterment activities conducted by the organization's membership during the five-year period preceding its application for a license. Such evidence may include, but is not limited to: 201.05A Filings with any governmental agencies regarding charitable activities of the applicant organization;201.05B Internal documents, including membership lists, dues statements, minutes of meetings of directors of the applicant organization, copies of corporate resolutions of the applicant organization, and/or correspondence and memoranda relating to nonprofit, charitable activities conducted by the applicant organization or its membership;201.05C Documents regarding day-to-day activities of the applicant organization such as bank statements of organization bank accounts, bills, statements, receipts, leases, documents affecting title to property, ledgers, account books, tax returns, employee lists, and/or any other documents pertaining to the applicant organization's administrative activities;201.05D The names, addresses, and phone numbers of individuals, firms, and organizations with whom the applicant organization has dealt in conducting its activities; or201.05E Other documentation showing participation by the applicant organization and its membership in charitable or community betterment activities.201.06 Notwithstanding the requirements of this regulation, a senior citizens group which has been in existence in Nebraska for at least five years and whose membership consists entirely of individuals who are at least sixty years of age may apply for a bingo license when bingo is played only by members of the senior citizens group. If a bingo game sponsored by a senior citizens group is open to the general public, all license eligibility criteria apply to its application for license.316 Neb. Admin. Code, 35, § 201
Sections 81-1545, 81-1548.03, 81-1548.04, 81-1560, R.R.S. 1943, and sections 81-1542, 81-1543, 81-1548.01, 81-1548.02, 81-1559, 81-1560.01, 81-1560.02, and 81-1560.03 R.S.Supp, 1993. May 14, 1994.