9-347 Gross proceeds; definite profit; use; restrictions; allocation of expenses. - Nebraska Statutes

9-347. Gross proceeds;definite profit; use; restrictions; allocation of expenses.(1) The gross proceeds of any lottery by the sale of pickle cardsshall be used solely for lawful purposes, awarding of prizes, payment of theunit cost, any commission paid to a pickle card operator, allowable expenses,and allocations for bingo expenses as provided by subsection (5) of this section.(2) Not less than sixty-five percent or more than eighty percentof the gross proceeds of any lottery by the sale of pickle cards shall beused for the awarding of prizes.(3) Not more than twelve percent of the definiteprofit of a pickle card unit shall be used by the licensed organization topay the allowable expenses of operating a lottery by the sale of pickle cards,except that license fees paid to the department to license the organization,each utilization-of-funds member, and any sales agent and pickle card dispensingdevice registration fees shall not be included in determining the twelve-percent limitation on expenses and noportion of such twelve percent shall be usedto pay any expenses associated with the sale of pickle cards at a bingo occasionconducted pursuant to the Nebraska Bingo Act, and of such twelve percentnot more than six percent of the definiteprofit may be used by the licensed organization for the payment of any commission,salary, or fee to a sales agent in connection with the marketing, sale, anddelivery of a pickle card unit. When determining the twelve percentof definite profit that is permitted to pay the allowable expenses of operatinga lottery by the sale of pickle cards, the definite profit from the sale ofpickle cards at the organization's bingo occasions shall not be included.(4) Not more than thirty percent of the definite profit ofa pickle card unit shall be used by a licensed organization to pay a picklecard operator a commission, fee, or salary for selling individual pickle cardsas opportunities for participation in a lottery by the sale of pickle cardson behalf of the licensed organization.(5) An organization licensed to conduct bingo pursuant tothe Nebraska Bingo Act may allocate a portion of the expenses associated withthe conduct of its bingo occasions to its lottery by the sale of pickle cardsconducted at such bingo occasions. Such allocation shall be based upon thepercentage that pickle card gross proceeds derived from the sale of picklecards at the bingo occasions represents to the total of bingo gross receiptsand pickle card gross proceeds derived from such bingo occasions for the previousannual reporting period. An organization licensed to conduct bingo that hasnot been previously licensed shall determine such allocation based upon thepercentage that pickle card gross proceeds derived from the sale of picklecards at the bingo occasions represents to the total of bingo gross receiptsand pickle card gross proceeds derived from such bingo occasions for the initialthree consecutive calendar months of operation. The total amount of expensesthat may be allocated to the organization's lottery by the sale of picklecards shall be subject to the limitations on bingo expenses as provided forin the Nebraska Bingo Act with respect to the fourteen-percent expense limitationand the fair-market-value limitation on the purchase, rental, or lease ofbingo equipment and the rental or lease of personal property or of a premisesfor the conduct of bingo. No expenses associated with the conduct of bingomay be paid directly from the pickle card checking account. A licensed organizationwhich needs to allocate a portion of the expenses associated with the conductof its bingo occasions to its lottery by the sale of pickle cards conductedat such bingo occasions to pay bingo expenses as provided by this sectionshall transfer funds from the pickle card checking account to the bingo checkingaccount by a check drawn on the pickle card checking account or by electronicfunds transfer. SourceLaws 1986, LB 1027, § 113; Laws 1988, LB 1232, § 45; Laws 1989, LB 767, § 43; Laws 1994, LB 694, § 89; Laws 1995, LB 344, § 18; Laws 2002, LB 545, § 34; Laws 2009, LB286, § 2. Cross ReferencesNebraska Bingo Act, see section 9-201.