Read the full stored bill text
LEGISLATURE OF NEBRASKA
ONE HUNDRED NINTH LEGISLATURE
SECOND SESSION
LEGISLATIVE BILL 828
Introduced by DeKay, 40; Clouse, 37; Hardin, 48; Holdcroft, 36.
Read first time January 07, 2026
Committee: General Affairs
A BILL FOR AN ACT relating to gift enterprises; to amend section 9-701,1
Reissue Revised Statutes of Nebraska; to redefine a term; and to2
repeal the original section. 3
Be it enacted by the people of the State of Nebraska,4
LB828
2026
LB828
2026
-1-
Section 1. Section 9-701, Reissue Revised Statutes of Nebraska, is1
amended to read: 2
9-701 (1) For purposes of this section: 3
(a) Financial institution means a bank, savings bank, building and4
loan association, or savings and loan association, whether chartered by5
the United States, the Department of Banking and Finance, or a foreign6
state agency as defined in section 8-101.03; or any other similar7
organization which is covered by federal deposit insurance;8
(b) Gift enterprise means a contest, game of chance, savings9
promotion raffle, or game promotion which is conducted within the state10
or throughout the state and other states in connection with the sale of11
consumer or trade products or services solely as business promotions and12
in which the elements of chance and prize are present. Gift enterprise13
does not include any scheme using the game of bingo or keno; any non-14
telecommunication-related, player-activated electronic or15
electromechanical facsimile of any game of chance; or any slot machine of16
any kind. A gift enterprise shall not utilize pickle cards as defined in17
section 9-315. Promotional game tickets may be utilized subject to the18
following: 19
(i) The tickets utilized shall be manufactured or imprinted with the20
name of the operator on each ticket; 21
(ii) The tickets utilized shall not be manufactured with a cost per22
play printed on them; and 23
(iii) The tickets utilized shall not be substantially similar to any24
type of pickle card approved by the Department of Revenue pursuant to25
section 9-332.01; 26
(c) Operator means any person, firm, corporation, financial27
institution, association, governmental entity, or agent or employee28
thereof who promotes, operates, or conducts a gift enterprise . Operator29
does not include any nonprofit organization or any agent or employee30
thereof, except that operator includes any credit union chartered under31
LB828
2026
LB828
2026
-2-
state or federal law or any agent or employee thereof who promotes,1
operates, or conducts a gift enterprise; and 2
(d) Savings promotion raffle means a contest conducted by a3
financial institution or credit union chartered under state or federal4
law or any agent or employee thereof in which a chance of winning a5
designated prize is obtained by the deposit of a specified amount of6
money in a savings account or other savings program if each entry has an7
equal chance of winning. 8
(2) Any operator may conduct a gift enterprise within this state in9
accordance with this section. 10
(3) An operator shall not: 11
(a) Design, engage in, promote, or conduct a gift enterprise in12
connection with the promotion or sale of consumer products or services in13
which the winner may be unfairly predetermined or the game may be14
manipulated or rigged; 15
(b) Arbitrarily remove, disqualify, disallow, or reject any entry;16
(c) Fail to award prizes offered; 17
(d) Print, publish, or circulate literature or advertising material18
used in connection with such gift enterprise which is false, deceptive,19
or misleading; or 20
(e) Require an entry fee, a payment or promise of payment of any21
valuable consideration, or any other consideration as a condition of22
entering a gift enterprise or winning a prize from the gift enterprise,23
except that a contest, game of chance, or business promotion may require,24
as a condition of participation, evidence of the purchase of a product or25
service as long as the purchase price charged for such product or service26
is not greater than it would have been without the contest, game of27
chance, or business promotion. For purposes of this section,28
consideration shall not include (i) filling out an entry blank, (ii)29
entering by mail with the purchase of postage at a cost no greater than30
the cost of postage for a first-class letter weighing one ounce or less,31
LB828
2026
LB828
2026
-3-
(iii) entering by a telephone call to the operator of or for the gift1
enterprise at a cost no greater than the cost of postage for a first-2
class letter weighing one ounce or less. When the only method of entry is3
by telephone, the cost to the entrant of the telephone call shall not4
exceed the cost of postage for a first-class letter weighing one ounce or5
less for any reason, including (A) whether any communication occurred6
during the call which was not related to the gift enterprise or (B) the7
fact that the cost of the call to the operator was greater than the cost8
to the entrant allowed under this section, or (iv) the deposit of money9
in a savings account or other savings program, regardless of the interest10
rate earned by such account or program. 11
(4) An operator shall disclose to participants all terms and12
conditions of a gift enterprise. 13
(5)(a) The Department of Revenue may adopt and promulgate rules and14
regulations necessary to carry out the operation of gift enterprises.15
(b) Whenever the department has reason to believe that a gift16
enterprise is being operated in violation of this section or the17
department's rules and regulations, it may bring an action in the18
district court of Lancaster County in the name of and on behalf of the19
people of the State of Nebraska against the operator of the gift20
enterprise to enjoin the continued operation of such gift enterprise21
anywhere in the state. 22
(6)(a) Any person, firm, corporation, association, or agent or23
employee thereof who engages in any unlawful acts or practices pursuant24
to this section or violates any of the rules and regulations promulgated25
pursuant to this section is guilty of a Class II misdemeanor.26
(b) Any person, firm, corporation, association, or agent or employee27
thereof who violates any provision of this section or any of the rules28
and regulations promulgated pursuant to this section shall be liable to29
pay a civil penalty of not more than one thousand dollars imposed by the30
district court of Lancaster County for each such violation which shall be31
LB828
2026
LB828
2026
-4-
remitted to the State Treasurer for distribution in accordance with1
Article VII, section 5, of the Constitution of Nebraska. Each day of2
continued violation shall constitute a separate offense or violation for3
purposes of this section. 4
(7) A financial institution or credit union may limit the number of5
chances that a participant in a savings promotion raffle may obtain for6
making the required deposits but shall not limit the number of deposits.7
(8) In all proceedings initiated in any court or otherwise under8
this section, the Attorney General or appropriate county attorney shall9
prosecute and defend all such proceedings. 10
(9) This section shall not apply to any activity authorized and11
regulated under the Nebraska Bingo Act, the Nebraska County and City12
Lottery Act, the Nebraska Lottery and Raffle Act, the Nebraska Pickle13
Card Lottery Act, the Nebraska Small Lottery and Raffle Act, or the State14
Lottery Act. 15
Sec. 2. Original section 9-701, Reissue Revised Statutes of16
Nebraska, is repealed. 17
LB828
2026
LB828
2026
-5-