This bill amends the Mechanical Amusement Device Tax Act in Nebraska, introducing stricter regulations for cash devices. Key changes include enhanced advertising guidelines that prohibit marketing tactics appealing to minors, such as the use of cartoon characters. The bill also mandates that cash devices cannot be operated with credit or debit cards and requires age verification measures, including the presence of an attendant and electronic verification systems by 2028. Additionally, the Tax Commissioner is granted increased authority to suspend or revoke licenses for non-compliance and to establish rules ensuring adherence to the new advertising standards.

Moreover, the bill modifies the tax structure for cash devices, raising the tax rate from five percent to fifteen percent of net operating revenue and redistributing the revenue to support various state programs, including the newly established Nebraska Child Care Aid Fund. It also expands the department's authority to review documents related to cash device operations, approve locations, and conduct unannounced audits to ensure compliance. The bill outlines specific licensing considerations, such as physical separation of businesses and dedicated entrances, and includes penalties for violations, while repealing certain sections of the Revised Statutes Cumulative Supplement, 2024, to facilitate these changes.

Statutes affected:
Introduced: 77-3003.01, 77-3003.02, 77-3006, 77-3009, 77-3012