The proposed bill amends the Mechanical Amusement Device Tax Act in Nebraska, introducing significant changes to the licensing process for operators, distributors, and manufacturers of cash devices. Key modifications include the transition from an annual to a biennial licensing requirement, the implementation of ongoing background checks, and the necessity for applicants to submit personal history reports and undergo facility inspections. Additionally, the bill increases the licensing fee for manufacturers from five thousand to ten thousand dollars and mandates that operators and distributors verify any outstanding debts or tax liabilities before disbursing winnings, aligning with the Gambling Winnings Setoff for Outstanding Debt Act.

The bill also enhances regulatory authority by granting the Tax Commissioner the power to deny, suspend, or revoke licenses based on various grounds, including violations of the act and non-compliance with tax obligations. It specifies that no renewal will be granted if the applicant would not qualify for a license upon initial application. Furthermore, certain sections of the Revised Statutes Cumulative Supplement, 2024, related to previous licensing regulations, are repealed, streamlining the legal framework governing mechanical amusement devices. Overall, the bill aims to strengthen oversight and ensure that all parties involved in cash device operations adhere to established legal and ethical standards.

Statutes affected:
Introduced: 9-1303, 77-3001, 77-3002, 77-3003, 77-3003.03
Final Reading: 77-3001, 77-3002, 77-3003, 77-3003.03