The department shall have
the following powers, functions, and duties:
(1) To issue licenses and temporary licenses;
(2) To deny any license application or renewal application
for cause. Cause for denial of an application for or renewal of a license
shall include instances in which the applicant individually or, in the case
of a business entity or a nonprofit organization, any officer, director, employee,
or limited liability company member of the applicant or licensee, other than
an employee whose duties are purely ministerial in nature, any other person
or entity directly or indirectly associated with such applicant or licensee
which directly or indirectly receives compensation other than distributions
from a bona fide retirement or pension plan established pursuant to Chapter
1, subchapter D of the Internal Revenue Code, from such applicant or licensee
for past or present services in a consulting capacity or otherwise, the licensee,
or any person with a substantial interest in the applicant or licensee:
(a) Violated the provisions, requirements, conditions, limitations,
or duties imposed by the Nebraska Bingo Act, the Nebraska County and City
Lottery Act, the Nebraska Lottery and Raffle Act, the Nebraska Pickle Card
Lottery Act, the Nebraska Small Lottery and Raffle Act, or the State Lottery
Act or any rules or regulations adopted and promulgated pursuant to such acts;
(b) Knowingly caused, aided, abetted, or conspired with another
to cause any person to violate any of the provisions of such acts or any rules
or regulations adopted and promulgated pursuant to such acts;
(c) Obtained a license or permit pursuant to such acts by
fraud, misrepresentation, or concealment;
(d) Was convicted of, forfeited bond upon a charge of, or
pleaded guilty or nolo contendere to any offense or crime, whether a felony
or misdemeanor, involving any gambling activity or fraud, theft, willful failure
to make required payments or reports, or filing false reports with a governmental
agency at any level;
(e) Was convicted of, forfeited bond upon a charge of, or
pleaded guilty or nolo contendere to any felony other than those described
in subdivision (d) of this subdivision within the ten years preceding the
filing of the application;
(f) Denied the department or its authorized representatives,
including authorized law enforcement agencies, access to any place where pickle
card activity required to be licensed under the Nebraska Pickle Card Lottery
Act is being conducted or failed to produce for inspection or audit any book,
record, document, or item required by law, rule, or regulation;
(g) Made a misrepresentation of or failed to disclose a material
fact to the department;
(h) Failed to prove by clear and convincing evidence his,
her, or its qualifications to be licensed in accordance with the Nebraska
Pickle Card Lottery Act;
(i) Failed to pay any taxes and additions to taxes, including
penalties and interest, required by the Nebraska Bingo Act, the Nebraska County
and City Lottery Act, the Nebraska Lottery and Raffle Act, or the Nebraska
Pickle Card Lottery Act or any other taxes imposed pursuant to the Nebraska
Revenue Act of 1967;
(j) Failed to pay an administrative fine levied pursuant to
the Nebraska Bingo Act, the Nebraska County and City Lottery Act, the Nebraska
Lottery and Raffle Act, or the Nebraska Pickle Card Lottery Act;
(k) Failed to demonstrate good character, honesty, and integrity;
(l) Failed to demonstrate, either individually or, in the
case of a business entity or a nonprofit organization, through its managers,
employees, or agents, the ability, experience, or financial responsibility
necessary to establish or maintain the activity for which the application
is made; or
(m) Was cited and whose liquor license was suspended, canceled,
or revoked by the Nebraska Liquor Control Commission for illegal gambling
activities that occurred on or after July 20, 2002, on or about a premises
licensed by the commission pursuant to the Nebraska Liquor Control Act or
the rules and regulations adopted and promulgated pursuant to such act.
No renewal of a license under the Nebraska Pickle Card Lottery
Act shall be issued when the applicant for renewal would not be eligible for
a license upon a first application;
(3) To revoke, cancel, or suspend for cause any license. Cause
for revocation, cancellation, or suspension of a license shall include instances
in which the licensee individually or, in the case of a business entity or
a nonprofit organization, any officer, director, employee, or limited liability
company member of the licensee, other than an employee whose duties are purely
ministerial in nature, any other person or entity directly or indirectly associated
with such licensee which directly or indirectly receives compensation other
than distributions from a bona fide retirement or pension plan established
pursuant to Chapter 1, subchapter D of the Internal Revenue Code from such
licensee for past or present services in a consulting capacity or otherwise,
or any person with a substantial interest in the licensee:
(a) Violated the provisions, requirements, conditions, limitations,
or duties imposed by the Nebraska Bingo Act, the Nebraska County and City
Lottery Act, the Nebraska Lottery and Raffle Act, the Nebraska Pickle Card
Lottery Act, the Nebraska Small Lottery and Raffle Act, the State Lottery
Act, or any rules or regulations adopted and promulgated pursuant to such
acts;
(b) Knowingly caused, aided, abetted, or conspired with another
to cause any person to violate any of the provisions of the Nebraska Pickle
Card Lottery Act or any rules or regulations adopted and promulgated pursuant
to the act;
(c) Obtained a license pursuant to the Nebraska Pickle Card
Lottery Act by fraud, misrepresentation, or concealment;
(d) Was convicted of, forfeited bond upon a charge of, or
pleaded guilty or nolo contendere to any offense or crime, whether a felony
or misdemeanor, involving any gambling activity or fraud, theft, willful failure
to make required payments or reports, or filing false reports with a governmental
agency at any level;
(e) Was convicted of, forfeited bond upon a charge of, or
pleaded guilty or nolo contendere to any felony other than those described
in subdivision (d) of this subdivision within the ten years preceding the
filing of the application;
(f) Denied the department or its authorized representatives,
including authorized law enforcement agencies, access to any place where pickle
card activity required to be licensed under the act is being conducted or
failed to produce for inspection or audit any book, record, document, or item
required by law, rule, or regulation;
(g) Made a misrepresentation of or failed to disclose a material
fact to the department;
(h) Failed to pay any taxes and additions to taxes, including
penalties and interest, required by the Nebraska Bingo Act, the Nebraska County
and City Lottery Act, the Nebraska Lottery and Raffle Act, or the Nebraska
Pickle Card Lottery Act or any other taxes imposed pursuant to the Nebraska
Revenue Act of 1967;
(i) Failed to pay an administrative fine levied pursuant to
the Nebraska Bingo Act, the Nebraska County and City Lottery Act, the Nebraska
Lottery and Raffle Act, or the Nebraska Pickle Card Lottery Act;
(j) Failed to demonstrate good character, honesty, and integrity;
(k) Failed to demonstrate, either individually or, in the
case of a business entity or a nonprofit organization, through its managers,
employees, or agents, the ability, experience, or financial responsibility
necessary to maintain the activity for which the license was issued; or
(l) Was cited and whose liquor license was suspended, canceled,
or revoked by the Nebraska Liquor Control Commission for illegal gambling
activities that occurred on or after July 20, 2002, on or about a premises
licensed by the commission pursuant to the Nebraska Liquor Control Act or
the rules and regulations adopted and promulgated pursuant to such act;
(4) To issue an order requiring a licensee or other person
to cease and desist from violations of the Nebraska Pickle Card Lottery Act
or any rules or regulations adopted and promulgated pursuant to such act.
The order shall give reasonable notice of the rights of the licensee or other
person to request a hearing and shall state the reason for the entry of the
order. The notice of order shall be mailed to or personally served upon the licensee or other
person. If the notice of order is mailed, the date
the notice is mailed shall be deemed to be the date of service of notice to
the licensee or other person. A request for a hearing by the licensee or other
person shall be in writing and shall be filed with the department within thirty
days after the service of the cease and desist order. If a request for hearing
is not filed within the thirty-day period, the cease and desist order shall
become permanent at the expiration of such period. A hearing shall be held
not later than thirty days after the request for the hearing is received by
the Tax Commissioner, and within twenty days after the date of the hearing,
the Tax Commissioner shall issue an order vacating the cease and desist order
or making it permanent as the facts require. All hearings shall be held in
accordance with the rules and regulations adopted and promulgated by the department.
If the licensee or other person to whom a cease and desist order is issued
fails to appear at the hearing after being duly notified, the licensee or
other person shall be deemed in default and the proceeding may be determined
against the licensee or other person upon consideration of the cease and desist
order, the allegations of which may be deemed to be true;
(5) To levy an administrative fine on an individual, partnership,
limited liability company, corporation, or organization for cause. For purposes
of this subdivision, cause shall include instances in which the individual,
partnership, limited liability company, corporation, or organization violated
the provisions, requirements, conditions, limitations, or duties imposed by
the act or any rule or regulation adopted and promulgated pursuant to the
act. In determining whether to levy an administrative fine and the amount
of the fine if any fine is levied, the department shall take into consideration
the seriousness of the violation, the intent of the violator, whether the
violator voluntarily reported the violation, whether the violator derived
financial gain as a result of the violation and the extent thereof, and whether
the violator has had previous violations of the act, rules, or regulations.
A fine levied on a violator under this section shall not exceed one thousand
dollars for each violation of the act or any rule or regulation adopted and
promulgated pursuant to the act plus the financial benefit derived by the
violator as a result of each violation. If an administrative fine is levied,
the fine shall not be paid from pickle card lottery gross proceeds of an organization
and shall be remitted by the violator to the department within thirty days
after the date of the order issued by the department levying such fine;
(6) To enter or to authorize any law enforcement officer
to enter at any time upon any premises where lottery by the sale of pickle
cards activity required to be licensed under the act is being conducted to
determine whether any of the provisions of such act or any rules or regulations
adopted and promulgated under such act have been or are being violated and
at such time to examine such premises;
(7) To require periodic reports of lottery by the sale of
pickle cards activity from licensed manufacturers, distributors, nonprofit
organizations, sales agents, pickle card operators, and any other persons,
organizations, limited liability companies, or corporations as the department
deems necessary to carry out the act;
(8) To require annual registration of coin-operated and currency-operated
devices used for the dispensing of pickle cards, to issue registration decals
for such devices, to prescribe all forms necessary for the registration of
such devices, and to impose administrative penalties for failure to properly
register such devices;
(9) To examine or to cause to have examined, by any agent
or representative designated by the department for such purpose, any books,
papers, records, or memoranda relating to the conduct of lottery by the sale
of pickle cards of any licensee, to require by administrative order or summons
the production of such documents or the attendance of any person having knowledge
in the premises, to take testimony under oath, and to require proof material
for its information. If any such person willfully refuses to make documents
available for examination by the department or its agent or representative
or willfully fails to attend and testify, the department may apply to a judge
of the district court of the county in which such person resides for an order
directing such person to comply with the department's request. If any documents
requested by the department are in the custody of a corporation, the court
order may be directed to any principal officer of the corporation. If the
documents requested by the department are in the custody of a limited liability
company, the court order may be directed to any member when management is
reserved to the members or otherwise to any manager. Any person who fails
or refuses to obey such a court order shall be guilty of contempt of court;
(10) Unless specifically provided otherwise, to compute,
determine, assess, and collect the amounts required to be paid as taxes imposed
by the act in the same manner as provided for sales and use taxes in the Nebraska
Revenue Act of 1967;
(11) To collect license application and license renewal application
fees imposed by the Nebraska Pickle Card Lottery Act and to prorate license
fees on an annual basis. The department shall establish by rule and regulation
the conditions and circumstances under which such fees may be prorated;
(12) To inspect pickle cards and pickle card units as provided
in section 9-339 ;
(13) To confiscate, seize, or seal pickle cards, pickle card
units, or coin-operated or currency-operated pickle card dispensing devices
pursuant to section 9-350 ;
(14) To adopt and promulgate such rules and regulations and
prescribe all forms as are necessary to carry out the Nebraska Pickle Card
Lottery Act; and
(15) To employ staff, including auditors and inspectors,
as necessary to carry out the act.