The department shall have
the following powers, functions, and duties:
(1) To issue licenses, temporary licenses, and permits;
(2) To deny any license or permit application or renewal
application for cause. Cause for denial of an application or renewal of a
license or permit shall include instances in which the applicant individually
or, in the case of a nonprofit organization, any officer, director, or employee
of the applicant, licensee, or permittee, other than an employee whose duties
are purely ministerial in nature, any other person or entity directly or indirectly
associated with such applicant, licensee, or permittee which directly or indirectly
receives compensation other than distributions from a bona fide retirement
plan established pursuant to Chapter 1, subchapter D of the Internal Revenue
Code from such applicant, licensee, or permittee for past or present services
in a consulting capacity or otherwise, the licensee, the permittee, or any
person with a substantial interest in the applicant, licensee, or permittee:
(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 the Nebraska
Bingo Act, the Nebraska County and City Lottery Act, the Nebraska Lottery
and Raffle Act, or 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 lottery
or raffle activity required to be licensed under the Nebraska Lottery and
Raffle 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
Lottery and Raffle 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 nonprofit organization, through its managers or employees, 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 Lottery and Raffle
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 or
permit. Cause for revocation, cancellation, or suspension of a license or
permit shall include instances in which the licensee or permittee individually
or, in the case of a nonprofit organization, any officer, director, or employee
of the licensee or permittee, other than an employee whose duties are purely
ministerial in nature, any other person or entity directly or indirectly associated
with such licensee or permittee which directly or indirectly receives compensation
other than distributions from a bona fide retirement plan established pursuant
to Chapter 1, subchapter D of the Internal Revenue Code from such licensee
or permittee for past or present services in a consulting capacity or otherwise,
or any person with a substantial interest in the licensee or permittee:
(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 Lottery
and Raffle Act or any rules or regulations adopted and promulgated pursuant
to the act;
(c) Obtained a license or permit pursuant to the 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 filing
of the application;
(f) Denied the department or its authorized representatives,
including authorized law enforcement agencies, access to any place where lottery
or raffle activity required to be licensed under the Nebraska Lottery and
Raffle 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 nonprofit organization, through its managers or employees, 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, permittee, or
other person to cease and desist from violations of the Nebraska Lottery and
Raffle 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,
permittee, 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, permittee, 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, permittee, or other person. A request for a hearing by the licensee,
permittee, 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, permittee, or other person
to whom a cease and desist order is issued fails to appear at the hearing
after being duly notified, the licensee, permittee, or other person shall
be deemed in default and the proceeding may be determined against the licensee,
permittee, or other person upon consideration of the cease and desist order,
the allegations of which may be deemed to be true;
(5) 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 lottery or raffle activities required
to be licensed pursuant to the Nebraska Lottery and Raffle Act, to require
by 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. Any person who fails or refuses to obey such a court order
shall be guilty of contempt of court;
(6) 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 lottery or raffle 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;
(7) Unless specifically provided otherwise, to compute, determine,
assess, and collect the amounts required to be paid to the state as taxes
imposed by the act in the same manner as provided for sales and use taxes
in the Nebraska Revenue Act of 1967;
(8) To collect license application, license renewal application,
and permit fees imposed by the Nebraska Lottery and Raffle 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;
(9) To confiscate and seize lottery or raffle tickets or
stubs pursuant to section 9-432 ; and
(10) To adopt and promulgate such rules and regulations,
prescribe such forms, and employ such staff, including inspectors, as are
necessary to carry out the act.