Nebraska Statutes 9-650. Segregation of gross proceeds; use of interest; records; requirements; Tax Commissioner; powers
(1) The gross proceeds of any lottery, less the amount awarded in prizes and any salary, fee, or commission paid to a licensed lottery operator plus any interest on such funds, shall be segregated from any other revenue and placed in a separate account of the lottery operator and the county, city, or village. If a lottery operator is conducting a lottery on behalf of a county, city, or village, such proceeds, including any interest, shall be transferred from the lottery operator’s separate account to a separate account of the county, city, or village. Any interest received by a county, city, or village from the proceeds of the lottery shall be used solely for community betterment purposes.
Terms Used In Nebraska Statutes 9-650
- Community betterment purposes: shall mean (a) benefiting persons by enhancing their opportunity for educational advancement, by relieving or protecting them from disease, suffering, or distress, by contributing to their physical well-being, by assisting them in establishing themselves in life as worthy and useful citizens, by providing them with opportunities to contribute to the betterment of the community, or by increasing their comprehension of and devotion to the principles upon which this nation was founded, (b) initiating, performing, or fostering worthy public works or enabling or furthering the erection or maintenance of public structures, (c) lessening the burdens borne by government or voluntarily supporting, augmenting, or supplementing services which government would normally render to the people, or (d) providing tax relief for the community. See Nebraska Statutes 9-604
- Department: shall mean the Department of Revenue. See Nebraska Statutes 9-604.01
- Gross proceeds: shall mean the total aggregate receipts received from the conduct of any lottery conducted by any county, city, or village without any reduction for prizes, discounts, taxes, or expenses and shall include receipts from admission costs, any consideration necessary for participation, and the value of any free tickets, games, or plays used, except that gross proceeds shall not include any admission costs collected at any location where the lottery is also available to the public free of any admission charge. See Nebraska Statutes 9-606
- Lottery operator: shall mean any individual, sole proprietorship, partnership, limited liability company, or corporation which operates a lottery on behalf of a county, city, or village. See Nebraska Statutes 9-614
(2) During the hours that keno is conducted at a sales outlet location, cash constituting the starting bank of the lottery operator conducting the keno game and cash receipts from the sale of keno tickets shall be segregated from all other revenue of the sales outlet location. Subject to the adoption and promulgation of rules and regulations by the department setting forth record-keeping and reporting criteria for lottery operators, counties, cities, and villages that request authorization from the department for the use of electronic transfers from satellite locations, cash receipts from the sale of keno tickets shall remain segregated from all other revenue of the sales outlet location until deposited in the bank account of the sales outlet location, lottery operator, county, city, or village. Such bank account shall be designated by the lottery operator, county, city, or village.
(3) The Tax Commissioner may authorize the electronic transfer of funds from the nonsegregated general business account of a sales outlet location to the bank account of a lottery operator, county, city, or village as long as such funds are transferred no later than five business days following the day the funds were collected. To facilitate the electronic transfer of such funds to a lottery operator, county, city, or village that has met the requirements of the rules and regulations adopted and promulgated pursuant to subsection (2) of this section, a sales outlet location may first deposit such funds into a nonsegregated general business account of the sales outlet location.
(4) The gross proceeds of any lottery, less the amount awarded in prizes, which are collected by a sales outlet location shall be deposited into the account of the sales outlet location, lottery operator, county, city, or village no later than five business days following the day such gross proceeds were collected.
(5) Separate records shall be maintained by such licensed county, city, or village. Records required by the Nebraska County and City Lottery Act shall be preserved for at least three years unless otherwise provided by rules and regulations adopted and promulgated by the department. Any law enforcement agency or other agency of government shall have the authority to investigate the records relating to lotteries and gross proceeds from such lottery at any time. Any county, city, or village shall, upon proper written request, deliver all such records to the department or other law enforcement agency for investigation.