Section 316-35-218 - COMMERCIAL LESSOR: LICENSE; REQUIREMENTS; AND DUTIES218.01 No individual, organization, or business shall rent or lease a premises for the conduct of bingo without first obtaining a commercial lessor's license from the Department and registering the premises, except that such license and registration shall not be required: 218.01A When the individual, organization, or business renting or leasing the premises does not receive more than $ 250.00 per month in the aggregate from renting or leasing the premises for the conduct of bingo. 218.01A(1) The $ 250.00 threshold shall include rental or lease payments for the premises for the conduct of bingo only and shall be cumulative, regardless of the number of licensed organizations separately renting or leasing the premises to conduct bingo; or 218.01B If a nonprofit organization owning its own premises rents or leases the premises solely to its own auxiliary.218.01B(1) If a nonprofit organization rents or leases a premises for the conduct of bingo to an organization other than its own auxiliary, it shall be required to obtain a commercial lessor's license and register the premises unless it meets the exception contained in Regulation 35 - 218.01A.218.02 A commercial lessor's license shall only be issued to those applicants doing business in Nebraska or authorized to do business in Nebraska. Authorization to do business in Nebraska requires: 218.02A A domestic corporation to file Articles of Incorporation with the Nebraska Secretary of State's office;218.02B A domestic limited liability company to file Articles of Organization with the Nebraska Secretary of State's office; or218.02C A foreign corporation or foreign limited liability company to obtain a certificate of authority to transact business in Nebraska from the Nebraska Secretary of State's office or to become domesticated by filing the requisite documents with the Nebraska Secretary of State's office and paying any required fees.218.03 An individual, organization, or business seeking a commercial lessor's license must apply for such license on a form prescribed by the Department. In addition, each premises to be rented or leased by the lessor for the conduct of bingo must be separately registered. The application and registration forms shall contain, at a minimum, the following information: 218.03A The name, address, and state and federal identification numbers of the applicant;218.03B The type of ownership of the business and the name, social security number, home address, and date of birth of: 218.03B(1) If a sole proprietorship, the individual owner;218.03B(2) If a partnership, each partner and spouse;218.03B(3) If a limited liability company, each member and spouse;218.03B(4) If a corporation, each officer and spouse and each individual or entity holding ten percent or more of the debt or equity of the corporation. If an entity holding ten percent or more of the debt or equity of the applicant corporation is a partnership, limited liability company, or corporation, the information required in Regulation 35-218.03B must be supplied for each partner of the partnership, each member of the limited liability company, or each officer of the corporation and every individual or entity holding ten percent or more of the debt or equity of the partnership or corporation; or218.03B(5) If a nonprofit organization or nonprofit corporation, each officer and the individual designated as manager; 218.03C If the applicant is not the owner of the premises to be registered, the name, address, social security number, date of birth, type of involvement, and percent of ownership of each individual or business having ownership interest in the premises. The applicant shall also include, with the application and/or registration, copies of all rental, lease, or sublease agreements between the applicant and the owner of the premises;218.03D If the applicant is not a resident or a corporation, the full name, business address, and home address of an individual who is a resident of and living in this state who is at least 19 years of age, to act as the lessor's resident agent for the purpose of receipt and acceptance of service of process and other communications on behalf of the lessor;218.03E The location address and legal description of each premises to be registered;218.03F The name and state identification number of each organization seeking to conduct bingo at the premises; and218.03G The day(s) and time of day the organization intends to conduct bingo.218.04 The applicant shall also be required to complete a supplemental questionnaire providing detailed information regarding physical characteristics of the premises to be rented or leased including, but not limited to, the square footage of the premises, the lawful seating capacity of the premises, the appraised value of the premises, the amount of rent or other consideration which is charged directly or indirectly for each bingo occasion to be conducted in the premises, the amount of rent or other consideration charged for use of the premises for functions other than bingo, a description of any tangible personal property included in the rental or lease agreement, and any other factors used by the commercial lessor in determining the rental or lease amount to be charged for use of the premises. 218.04A The amount which may be charged for the rental or lease of a premises for the conduct of bingo shall not exceed the fair market value amount charged for the same premises or for facilities in similar locations when rented or leased for public or social gatherings such as wedding receptions, parties, meetings, or other similar gatherings. Regulation 35-208.08 specifies other factors that are to be used in determining fair market value.218.05 A copy of the written rental or lease agreement between the organization and the applicant shall also accompany the commercial lessor's license application and premises registration. Rental or lease agreements may cover both real and personal property rented or leased to the licensed organization. Rental or lease agreements for bingo equipment shall be separate from rental or lease agreements for a premises. 218.05A All rental and lease agreements between a commercial lessor and a licensed organization must receive preapproval by the Department.218.06 Each registration of a premises shall be accompanied by the statutorily required fee. Such registration and the commercial lessor's license shall expire on September 30 of each odd-numbered year and may be renewed biennially. An application to renew a commercial lessor's license and registration of a premises is due 45 days prior to the expiration date of the license and registration. A commercial lessor's license and registration of a premises is not transferrable. 218.06A The original commercial lessor's license as well as the registration of premises issued by the Department must be publicly posted at the premises.218.07 It shall be the responsibility of the commercial lessor to keep the application and registration information current. The Department shall be notified in writing within thirty (30) days of any changes to the application or registration information.218.08 An individual, organization, or business is not considered to be licensed as a commercial lessor and a premises is not considered to be registered until physical possession of the license and/or registration issued by the Department has been obtained. 218.08A A commercial lessor who no longer desires to be licensed or who no longer intends to rent or lease a premises for the conduct of bingo shall notify the Department in writing. Such notification shall be accompanied by the original license and/or registration certificate.218.09 A licensed commercial lessor, the owner of a premises, and all parties who rent, lease, or sublease a premises which ultimately is rented or leased to a licensed organization for the conduct of bingo, and any individual with a substantial interest in a commercial lessor, and the employees of a commercial lessor shall not be involved directly or indirectly with the conduct of any bingo occasion. Such parties shall not manage, operate, promote, advertise, or administer bingo, nor derive any financial gain from any gaming activities regulated under Chapter 9, except as provided in section 9 - 255.06 of the Nebraska Bingo Act.218.09A As used in this regulation, the term "involved directly or indirectly" shall include, but not be limited to, the payment of any expense of a licensed organization, whether such payment is by loan or otherwise; conducting advertising on behalf of the licensed organization conducting the bingo game; or doing any acts which would constitute the conduct of the bingo game such as determining what games will be played at a bingo occasion, acting as a bingo caller, selling admissions or bingo cards, or preparing records for the bingo occasion.218.09B Nothing in this regulation shall be construed to prohibit an individual, officer, or employee of an organization which is licensed to conduct bingo, but which may also hold a license as a commercial lessor, from involvement with its own bingo game. However, when a licensed organization acts as a commercial lessor to another licensed organization, no individual, officer, or employee of the organization acting as a commercial lessor shall be involved directly or indirectly with the conduct of bingo on behalf of another organization.218.10 No commercial lessor, or individual or business connected to, interested in, otherwise involved directly or indirectly with or who has a substantial interest in a commercial lessor, shall be designated as a bingo chairperson or alternate bingo chairperson, or be licensed as a gaming manager, utilization of funds member, or sales agent. A licensed commercial lessor shall not be licensed as or have a substantial interest, as defined in Regulation 35 - 200.20, in any individual or business licensed as a distributor, manufacturer, or manufacturer - distributor pursuant to Chapter 9.316 Neb. Admin. Code, 35, § 218
Sections 9 - 202, 9 - 204.02, 9 - 207.01, 9 - 209, 9 - 209.01, 9 - 216, 9 - 225.01, 9 - 241.04, 9 - 241.07, 9 - 241.08, 9 - 241.10, 9 - 307, 9 - 313, 9 - 320, and 9 - 616, R.R.S. 1997. Sections 9 - 214.01, 9 - 226, 9 - 241.05, and 9 - 255.06, R.S.Supp., 2002. November 12, 2002.