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 or renewal of a license shall
include instances in which the applicant individually, or in the case of a
business entity, 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, 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 a 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 activity
required to be licensed under the Nebraska County and City 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
County and City 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 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 County and City
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, 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 County
and City Lottery Act or any rules or regulations adopted and promulgated pursuant
to the act;
(c) Obtained a license pursuant to the Nebraska County and
City 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 a 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 activity
required to be licensed under the Nebraska County and City 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 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 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 County and City Lottery
Act or any rules or regulations adopted and promulgated pursuant to the 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 and regulations. A fine
levied on a violator under this section shall not exceed twenty-five thousand
dollars for each violation of the act or any rules and regulations 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 gross proceeds of the county, city,
or village and shall be remitted by the violator to the department within
thirty days from 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 activity required to
be licensed under the act is being conducted to determine whether any of the
provisions of the act or any rules or regulations adopted and promulgated
under it have been or are being violated and at such time to examine such
premises;
(7) To require periodic reports of lottery activity from
licensed counties, cities, villages, manufacturer-distributors, and lottery
operators and any other persons, organizations, limited liability companies,
or corporations as the department deems necessary to carry out the act;
(8) To audit, examine, or 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 a lottery,
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;
(9) 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;
(10) To collect license application and license renewal application
fees imposed by the Nebraska County and City 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;
(11) To confiscate and seize lottery equipment or supplies
pursuant to section 9-649 ;
(12) To investigate the activities of any person applying
for a license under the act or relating to the conduct of any lottery activity
under the act. Any license applicant or licensee shall produce such information,
documentation, and assurances as may be required by the department to establish
by a preponderance of the evidence the financial stability, integrity, and
responsibility of the applicant or licensee, including, but not limited to,
bank account references, business and personal income and disbursement schedules,
tax returns and other reports filed with governmental agencies, business entity
and personal accounting records, and check records and ledgers. Any such license
applicant or licensee shall authorize the department to examine bank accounts
and other such records as may be deemed necessary by the department;
(13) To adopt and promulgate such rules and regulations and
prescribe all forms as are necessary to carry out the act; and
(14) To employ staff, including auditors and inspectors,
as necessary to carry out the act.