Section 316-35-219 - DISTRIBUTOR OF BINGO EQUIPMENT: LICENSE; REQUIREMENTS; AND DUTIES219.01 Any individual or business which intends to sell, rent, lease, or otherwise provide bingo equipment in this state to a licensed organization or licensed commercial lessor for use in a bingo game regulated by the Nebraska Bingo Act must first apply for and obtain a distributor's license from the Department. A distributor's license shall not be required of: 219.01A An individual or business which sells or otherwise supplies only bingo supplies;219.01B A third party which provides only for the financing of bingo equipment retaining a security interest in such equipment until such time as the purchaser has clear title. However, a distributor's license would be required of the individual or business which is selling, renting, or leasing the equipment directly to the licensed organization or licensed commercial lessor;219.01C A licensed organization when it lends, without charge, its bingo equipment, excluding disposable paper bingo cards, to another licensed organization on an emergency basis or to a qualifying nonprofit organization for use at a special event bingo conducted pursuant to Regulation 35 - 222;219.01D A licensed organization which, with prior approval from the Department, sells or donates its old bingo equipment to another licensed organization when it is purchasing or intends to purchase new bingo equipment; or219.01E An organization which has voluntarily canceled its bingo license, allowed the license to lapse, or has had its license suspended, canceled, or revoked and which, with prior approval from the Department, sells or donates its bingo equipment to another licensed organization. 219.02 To qualify for a distributor's license, the applicant must be authorized to conduct business in Nebraska and have its principal office located within this state. 219.02A Authorization to do business in Nebraska requires: 219.02A(1) A domestic corporation to file Articles of Incorporation with the Nebraska Secretary of State's office;219.02A(2) A domestic limited liability company to file Articles of Organization with the Nebraska Secretary of State's office;219.02A(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 requisite documents with the Nebraska Secretary of State's office and paying any required fees; or 219.02A(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.219.03 Applicants seeking a distributor's license 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. 219.03A Licensed distributors are required to obtain a Nebraska sales tax permit and must collect and remit sales tax on the gross receipts derived from the sale, rental, or lease of all bingo supplies and equipment in Nebraska, except that sold for resale or sold, rented, or leased to organizations exempt as set forth in Sales and Use Tax Regulation 1 - 012, which have presented a properly completed Nebraska Resale or Exempt Sale Certificate, Form 13.219.04 An individual or business applying for a distributor's license shall do so on a form prescribed by the Department. The applicant shall include with the application form the statutorily required license fee and, at a minimum, the following information: 219.04A The business name and address of the applicant and the name and address of each of the applicant's separate locations warehousing bingo equipment;219.04B The type of ownership of the business and the name, social security number, home address, and date of birth of: 219.04B(1) If a sole proprietorship, the individual owner; 219.04B(2) If a partnership, each partner and spouse;219.04B(3) If a limited liability company, each member and spouse; or 219.04B(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 - 219.04B 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. 219.04C A completed and not arized Personal History Record and Background Disclosure form supplied by the Department for each individual listed pursuant to Regulation 35 - 219.04B, 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; and 219.04D Two sets of fingerprints on cards supplied by the Department and the requisite fees established by the Nebraska State Patrol and the Federal Bureau of Investigation for each individual listed pursuant to Regulation 35 - 219.04B, 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. 219.05 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. Changes must be reported in writing and the Department may require the filing of a new application.219.05A Changes shall be confirmed by the signature of an owner, partner, member, or officer of the distributor. Any individual signing the most cur rent application shall obligate the distributor to comply with the Nebraska Bingo Act and accompanying regulations for that licensing period.219.06 A distributor'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 distributor's license is not transferable.219.07 A distributor is not considered licensed until it has physical possession of the printed license issued by the Department. 219.07A A distributor who has had its license lost, stolen, or destroyed must notify the Department as soon as possible. The distributor 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.219.07B Any individual or business licensed as a distributor pursuant to section 9 - 330 of the Nebraska Pickle Card Lottery Act may act as a distributor 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.219.07C A distributor 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 distributorship. A notification of cancellation shall be accompanied by the original license issued by the Department.219.08 A licensed distributor, or any individual or business 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 - 330 of the Nebraska Pickle Card Lottery Act, and section 9 - 632 of the Nebraska County and City Lottery Act. 219.08A A licensed distributor, or employee or spouse of a licensed distributor, shall not have a substantial interest, as defined in Regulation 35 - 200.20, in any other distributor, manufacturer, licensed organization, pickle card operator, 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.219.08B A licensed distributor or employee or spouse of a licensed distributor 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 distributor or employee thereof.219.08C A licensed distributor shall not be connected, interested, or otherwise concerned directly or indirectly with any individual or business licensed as a manufacturer or commercial lessor.219.09 A licensed distributor shall purchase or otherwise obtain bingo equipment only from a licensed manufacturer. A licensed distributor shall sell or otherwise provide bingo equipment only to an organization licensed to conduct bingo, a licensed commercial lessor, or a qualifying nonprofit organization which has obtained a special event bingo permit, except that a licensed distributor shall not sell or otherwise provide disposable paper bingo cards to anyone in Nebraska other than (a) a licensed organization or, (b) a qualifying nonprofit organization which has obtained a special event bingo permit, without written authorization from the Department. 219.09A Nothing in this regulation shall be construed to prohibit a licensed distributor from selling or otherwise providing bingo equipment to: 219.09A(1) A federally recognized Indian tribe;219.09A(2) Another distributor with prior approval by the Department; or 219.09A(3) A purchaser residing outside Nebraska provided the transaction is invoiced in the manner prescribed in Regulation 35 - 219.12.219.10 The price charged by a licensed distributor for bingo equipment shall not be fixed or set by agreement among licensed distributors in any manner, either expressed or implied. No distributor 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 distributor.
219.10B No individual or licensee shall accept or agree to accept anything of value from a distributor in exchange for an agreement or commitment by such individual or licensee to exclusively buy, sell, or use bingo equipment sold by such distributor.219.11 A licensed distributor shall not be prohibited from cutting and assembling disposable paper bingo cards into single sheet, booklet, or packet form for resale to a licensed organization or qualifying nonprofit organization which has obtained a special event bingo permit provided that such paper is manufactured by and obtained from a licensed manufacturer.219.12 A distributor shall issue an invoice to each purchaser of bingo supplies and equipment . Each invoice shall contain the following information: 219.12A The name and complete address of the purchaser and, if the purchaser is a licensed organization, the organization's state identification number;219.12B The name of the individual placing the order;219.12C The date of the invoice and invoice number;219.12D A description of the bingo supplies or equipment including serial numbers when applicable;219.12E For all transactions involving disposable paper bingo cards and/or electronic facsimiles of bingo cards which are downloaded to a licensed organization's site system:219.12E(1) A complete description, including color (if applicable) of the bingo card or packet (i.e., 3 ON red booklet, 6 ON yellow booklet, 3 ON green specials, instant bingo cards, singles, doubles, triples, etc.),219.12E(2) The quantity sold, exchanged, or returned (number of packets per case; for instant bingo cards and specials, the total number of sheets), and 219.12E(3) The serial numbers of the bin go 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); 219.12F For each organization to whom the distributor supplies bingo card monitoring devices, the number of and cost charged per device, per bingo occasion;219.12G The price charged for the bingo supplies or equipment, applicable taxes, and the total amount to be paid, exchanged, or returned by the purchaser; and219.12H The manner of delivery or shipment, including the name address, and telephone number of the entity with whom delivery or shipment is made.219.13 A licensed distributor shall be required to keep the following records: 219.13A Copies of all invoices for the purchase of bingo supplies and equipment from licensed manufacturers or any other source;219.13B Copies of all invoices for the sale, return, exchange, rental, or lease of bingo supplies and equipment to licensed organizations, commercial lessors, special event bingo permittees, federally recognized Indian tribes, and any other customers whether located within or outside this state;219.13C Copies of all rental, lease, or other contractual agreements relating to bingo equipment or supplies between the distributor and a manufacturer, licensed organization, commercial lessor, special event bingo permittee, or any other individual or business; and 219.13D A detailed record of any bingo supplies or equipment lost, stolen, or destroyed by the distributor.219.14 All records required by this regulation shall be maintained for a period of not less than three years from the date of the end of the licensee's fiscal year. The Department may request periodic reporting from a licensed distributor regarding any information required to be kept by this regulation.316 Neb. Admin. Code, 35, § 219
Sections 77 - 2702.06, 77 - 2702.08, 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 - 241.08, 9 - 241.10, 9 - 255.01, 9 - 255.07, 9 - 255.09, 9 - 330, and 9 - 616, R.R.S. 1997. Sections 9 - 1, 104, 9 - 213, 9 - 214.01, 9 - 226, 9 - 230.01, 9 - 241.05, 9 - 255.08, 77 - 2702.16, 77 - 2703, 77 - 2704.11, 77 - 2704.12, 77 - 2704.15, and 77 - 2705, R.S.Supp., 2002. Sections 9 - 204, 9 - 204.01, and 9 - 204.04, R.S.Supp., 2004. September 5, 2005.