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Bill 1997
Explanatory note
This explanatory note relates to this Bill as introduced into Parliament.*
Amendments to the Totalizator Agency Board Privatisation Act 1997
(a)
A number of amendments are made to the Act to clarify the operation
of provisions that will prevent a shareholding in TAB Limited in
excess of 5% for any one shareholder.
(b) Other amendments provide that a contravention of the maximum
shareholding restriction will not lead to an automatic avoidance of the
transaction that resulted in the prohibited shareholding but will still
render the shares concerned liable to forfeiture at the direction of the
Minister.
* Amended in committee-see table at end of volume.
(c)
Provision that enables a director or secretary of TAB Limited (in the
context of a suspected contravention of the maximum shareholding
restriction) to refuse to register certain share transfers is removed.
(d)
Provision is made for the State to be immune from liability in respect
of the actions in good faith of the Minister and others under the
maximum shareholding provisions.
(e)
Various consequential amendments and other minor amendments are
made.
Amendments to the Totalizator Act 1997
The Act is amended to confer additional functions and powers on the
racing industry controlling bodies (the NSW Thoroughbred Racing
Board, Harness Racing New South Wales and the Greyhound Racing
Authority (NSW)).
Various amendments are made to clarify which events and
contingencies can be the subject of a licence under the Act to conduct
a totalizator.
Provisions that deal with the grant of exclusive totalizator licences to
TAB Limited (or a subsidiary) and the racing clubs are amended to
make it clear that the exclusive licences can be granted for terms that
are longer than the exclusivity period (15 years).
Provision is added to enable the Minister to require the payment of an
amount as consideration for the grant of a totalizator licence and to
require payment of a periodic licence fee.
Exemption from the operation of Part IV of the Trade Practices Act
1974 of the Commonwealth is granted in respect of the grant of the
exclusive licences, conduct under those licences, certain arrangements
approved by the Minister and conduct under those arrangements, and
the giving by a controlling body of certain directions to racing clubs.
An existing provision that requires an applicant for a totalizator licence
to have made commercial arrangements with the racing industry is
modified to require the arrangements to be arrangements that the
racing industry is satisfied with.
A number of amendments are made to the Act to clarify the operation
of provisions that will prevent a shareholding in a totalizator licensee
in excess of 5% for any one shareholder.
Explanatory note page 2
Other amendments provide that a contravention of the maximum
shareholding restriction will not lead to an automatic avoidance of the
transaction that resulted in the prohibited shareholding but will still
render the shares concerned liable to forfeiture at the direction of the
Minister.
Provision that enables a director or secretary of a totalizator licensee
(in the context of a suspected contravention of the maximum
shareholding restriction) to refuse to register certain share transfers is
removed.
Provision is made for the State to be immune from liability in respect
of the actions in good faith of the Minister and others under the
maximum shareholding provisions.
The provision that requires the holder of a totalizator licence to have in
place and give effect to certain commercial arrangements with the
racing industry is amended to exempt licences held by racing clubs and
to require that the arrangements must be to the satisfaction of the
racing industry.
A provision for the payment of rebates of betting tax to racing clubs is
amended to provide for the rebates to be determined by directions of
the Minister given by order published in the Gazette, rather than by
regulation.
Existing transitional provisions for the continuation of the Racing
Development Fund are amended to provide for the winding up and
distribution of the fund.
An existing transitional provision that confers additional powers on the
controlling bodies is expanded to broaden the range of purposes for
which the additional powers are available.
New provisions are added to give the controlling bodies power to give
certain directions to the racing clubs for which they are responsible,
and to provide for exemptions from stamp duty.
Various consequential amendments and other minor amendments are
made.
Amendments to the Liquor Act 1982
(a)
The Bill makes the following amendments with respect to the proposed
centralised monitoring system (CMS) for gaming machines in hotels:
(i)
new interpretative provisions are inserted to define what
constitutes "connection" of a gaming machine to the CMS,
Explanatory note page 3
(ii) the provision dealing with the power of the CMS licensee to
collect gaming machine duty is amended to enable gaming
machines to be included in or excluded from its operation by
regulation,
(iii) provisions for secrecy of information are clarified and expanded,
(iv) provisions dealing with the CMS licence are amended to require
that a licence holder must have certain commercial arrangements
with the racing industry,
(v)
other minor or consequential changes.
Exemption from the operation of Part IV of the Trade Practices Act
1974 of the Commonwealth is conferred in respect of the exclusive
CMS licence to be granted to TAB Limited (or a subsidiary).
Amendments are made to provide flexibility in respect of the payment
and collection of the CMS monitoring fee payable by hoteliers.
An existing provision for the payment of a fee determined by the
Minister for a CMS licence is replaced with provision for an amount to
be payable as consideration for the grant of the licence and as a
periodic licence fee.
Provisions dealing with licences to operate a linked gaming system are
amended to require the holder of a licence to have made certain
commercial arrangements with the racing industry.
Exemption from the operation of Part IV of the Trade Practices Act
1974 of the Commonwealth is conferred in respect of the grant of the
exclusive linked gaming system licence to TAB Limited (or a
subsidiary).
An existing provision for the payment of a fee determined by the
Minister for a linked gaming system licence is replaced with provision
for an amount to be payable as consideration for the grant of the
licence and as a periodic licence fee.
Various consequential amendments and other minor amendments are
made.
Amendments to the Registered Clubs Act 1976
(a)
The Bill makes the following amendments with respect to the proposed
centralised monitoring system (CMS) for gaming machines in clubs:
(i)
a new interpretative provision is inserted to defined what
constitutes "connection" of a gaming machine to the CMS,
Explanatory note page 4
(ii)
the provision dealing with the power of the CMS licensee to
collect gaming machine duty is amended to enable gaming
machines to be included in or excluded from its operation by
regulation,
(iii) a regulation making power that allows the transfer of the Liquor
Administration Board's functions with respect to gaming
machines that are connected or capable of connection to a CMS
is expanded so that it applies to all gaming machines under the
Act.
Provisions dealing with licences to operate a linked gaming system for
clubs are amended to require that a licence can only be held by a
person who has made certain commercial arrangements with the racing
industry.
Exemption from the operation of Part IV of the Trade Practices Act
1974 of the Commonwealth is conferred in respect of the exclusive
inter-club linked gaming system licence to be granted to TAB Limited
(or a subsidiary).
Amendments are made to provide flexibility in respect of the payment
and collection of the CMS monitoring fee payable by registered clubs.
An existing provision for the payment of a fee determined by the
Minister for a linked gaming system licence is replaced with provision
for an amount to be payable as consideration for the grant of the
licence and as a periodic licence fee.
Various consequential amendments and other minor amendments are
made.
Clause 2 provides for the proposed Act to commence on a day or days to be
proclaimed.
Clause 3 gives effect to the Schedule of amendments to the Totalizator
Agency Board Privatisation Act 1997.
Clause 4 gives effect to the Schedule of amendments' to the Totalizator Act
1997.
Explanatory note page 5
Clause 5 gives effect to the Schedule of amendments to the Liquor Act
1982.
Clause 6 gives effect to the Schedule of amendments to the Registered
Clubs Act 1976.
Schedule 1 Amendment of Totalizator Agency Beard
Privatisation Act 1997
Schedule 1 [1][5], [30] and [33] amend provisions dealing with the issue of
shares in TAB Limited to reflect the fact that all the shares issued to the State
may not all be issued at the same time and that some may be issued under the
Totalizator Act 1997 as consideration for the grant of a licence.
Schedule 1 [6][8], [10][14] and [19][21] clarify and improve the
operation of provisions that will prevent a shareholding in TAB Limited in
excess of 5% for any one shareholder.
Schedule 1 [ [15][18] and [25] amend the maximum shareholding provisions
so that a contravention of them will not lead to an automatic avoidance of a
transaction that resulted in a prohibited shareholding (but will still render the
shares concerned liable to forfeiture at the direction of the Minister).
Schedule 1 [9] and [22][24] make amendments to reflect the fact that the
exclusive licences provided for under the Totalizator Act 1997 can be issued
to a subsidiary of TAB Limited (and not just TAB Limited itself).
Schedule 1 [26] extends an existing section that grants immunity to the
Minister and others in respect of functions exercised in good faith under the
maximum shareholding provisions so that the immunity extends to the State.
Schedule 1 [27] makes minor amendments to correct terminology and
references to TAB Limited after its corporatisation.
Schedule 1 [28] and [29] amend an existing provision that protects
contractual and other obligations arising under the Act so that the provision
will extend to the payment of any consideration or fee payable for a licence
issued to TAB Limited under the Totalizator Act 1997, the Liquor Act 1982
or the Registered Clubs Act 1976. The provision is also simplified by the
removal of an unnecessary exception.
Schedule 1 [31] corrects a consequential amendment.
Schedule 1 [32] corrects a cross-reference.
Explanatory note page 6
Schedule 2 Amendment of Totalizator Act 1997
Schedule 2 [ l ] and [4] define controlling bodies to mean the NSW
Thoroughbred Racing Board, Harness Racing New South Wales and the
Greyhound Racing Authority (NSW).
Schedule 2 [2] alters the definition of racing club so that it is restricted to
those bodies that are registered by one of the controlling bodies as a racing
club.
Schedule 2 [3] extends the definition of racecourse to provide for
racecourses that are situated outside the State.
Schedule 2 [6] and [7] amend the general provisions that deal with the grant
of totalizator licences to make it clear that a licence can be granted in respect
of betting on any one or more of the events and contingencies referred to in
those provisions.
Schedule 2 [5], [8] and [29] amend the provisions that deal with the grant of
exclusive licences to TAB Limited (or a subsidiary) and the racing clubs so
as :
(a)
to make it clear that the exclusive licences apply in respect of all of the
events and contingencies referred to in those provisions,
(b)
to make it clear that the exclusive licences can be granted for terms
that are longer than the exclusivity period (15 years) (but so as only to
be exclusive for the exclusivity period),
(c)
to make it clear that to the extent that an exclusive licence applies to an
event or contingency on a racecourse it will only cover horse,
greyhound and harness racing events or contingencies held at a race
meeting,
(d) to insert a new provision that will enable the Minister to require the
payment of an amount as consideration for the grant of a totalizator
licence and payment of a periodic licence fee.
Schedule 2 [9] grants a broad exemption from the operation of Part IV of the
Trade Practices Act 1974 of the Commonwealth in respect of the grant of the
exclusive licences, conduct under those licences, certain arrangements
approved by the Minister and conduct under those arrangements, and the
giving by a controlling body of directions under a new provision enabling
controlling bodies to give directions to the racing clubs for which they are
responsible.
Schedule 2 [10] and [11] replace a provision that requires an applicant for a
licence to have made commercial arrangements with the racing industry that
the Minister is satisfied are necessary to properly give effect to the licence
Explanatory note page 7
with a provision that requires the arrangements to be arrangements that the
racing industry has indicated it is satisfied with. The new provision also
requires the Minister to be provided with a copy of the arrangements. Racing
clubs are exempted from the new requirement.
Schedule 2 [12][25] clarify and improve the operation of provisions that
will prevent an individual shareholder entitlement in the holder of a
totalizator licence in excess of 5%. The provisions will also be amended so
that a contravention of the shareholding restrictions will not lead to the
automatic voiding of a transaction that resulted in a prohibited shareholding
but instead will make the shares concerned liable to forfeiture at the direction
of the Minister.
Schedule 2 [26] extends an existing section that grants immunity to the
Minister and others in respect of functions exercised in good faith under the
maximum shareholding provisions so that the immunity extends to the State.
Schedule 2 [27] amends a provision that requires the holder of a totalizator
licence to have in place and give effect to certain commercial arrangements
with the racing industry to exempt on-course totalizator licences held by
racing clubs from the requirement and to provide that the arrangements must
be to the satisfaction of the racing industry. Schedule 2 [28] inserts a
definition of racing industry.
Schedule 2 [30] amends an existing provision for the payment of rebates of
betting tax to racing clubs to provide for the rebates to be determined by
directions of the Minister given by order published in the Gazette, rather than
by regulation.
Schedule 2 [31] and [32] amend existing transitional provisions for the
continuation of the Racing Development Fund to provide for the conversion
of references to the old Fund and to provide for the winding up and
distribution of the continued fund.
Schedule 2 [33] and [34] amend an existing transitional provision that
confers additional powers on the controlling bodies to broaden the range of
purposes for which the additional powers are available, and inserts an
additional provision to give the controlling bodies power to give directions to
the racing clubs for which they are responsible. There is also provision for
exemptions from stamp duty for arrangements entered into by the controlling
bodies for facilitating the restructuring and reorganisation of the racing
industry.
Explanatory note page 8
Schedule 3
Amendment of Liquor Act 1982
Schedule 3 [l] and [8] insert new interpretative provisions to define what
constitutes "connection" of a gaming machine to a CMS (a centralised
monitoring system for gaming machines in hotels).
Schedule 3 [2] and [3] amend a provision dealing with the power of the CMS
licensee to collect gaming machine duty to enable the regulations to include
within the operation of the section gaming machines that are not connected to
the CMS, or to exclude gaming machines from its operation that are
connected to the CMS.
Schedule 3 [4], [5] and [7] replace a provision dealing with the duty of
secrecy of the CMS licensee with respect to information obtained from the
operation of the CMS with a new provision that extends to officers, directors
and employees of the CMS licensee and also provides for the making of
regulations to impose further restrictions on the use of that information by the
CMS licensee.
Schedule 3 [6] expands a regulation making power that allows the transfer of
the Liquor Administration Board's functions with respect to gaming
machines that are connected or capable of connection to a CMS so that the
provision applies to all gaming machines under the Act.
Schedule 3 [9] amends provisions dealing with the CMS licence to provide
that the licence is subject to a condition that the licensee must have
commercial arrangements with the racing industry in place and give effect to
them.
Schedule 3 [10] amends a provision dealing with the term of a CMS licence
to make it clear that the term of the licence is subject to any earlier
cancellation or surrender.
Schedule 3 [11] grants a broad exemption from the operation of Part IV of
the Trade Practices Act 1974 of the Commonwealth in respect of the grant of
the exclusive CMS licence to TAB Limited (or a subsidiary) and conduct
under those licences.
Schedule 3 [12] and [13] amend the Act to provide flexibility in respect of
the payment and collection of the monitoring fee payable by a hotelier in
respect of gaming devices connected to the CMS. The regulations will be
able to provide for the manner and frequency of payment, to whom the fee is
payable and the collection and recovery of the fee.
Schedule 3 [14] replaces an existing provision for the payment of a fee
determined by the Minister for a CMS licence with a provision that provides
for the determination by the Minister of an amount as the consideration
Explanatory note page 9
payable for the grant of the licence and for the determination of a periodic
licence fee.
Schedule 3 [15] and [16] amend provisions dealing with disciplinary action
and search warrants in connection with a CMS licensee to include a breach of
a provision of the Registered Clubs Act 1976 or the regulations under that
Act as grounds for the operation of the provisions.
Schedule 3 [17] amends provisions dealing with licences to operate a linked
gaming system to provide that the licence is subject to a condition that the
licensee must have commercial arrangements with the racing industry in
place and give effect to them.
Schedule 3 [18] confers a broad exemption from the operation of Part IV of
the Trade Practices Act 1974 of the Commonwealth in respect of the grant of
the exclusive linked gaming system licence to TAB Limited (or a subsidiary)
and conduct under those licences.
Schedule 3 [19] replaces an existing provision for the payment of a fee
determined by the Minister for a linked gaming system licence with a
provision that provides for payment of an amount determined by the Minister
as the consideration payable for the grant of the licence and for the payment
of a periodic licence fee.
Schedule 3 [20] amends a provision dealing with the term of a linked gaming
system licence to make it clear that the term of the licence is subject to any
earlier cancellation or surrender.
Schedule 4
Amendment of Registered Clubs Act 1976
Schedule 4 [l] inserts a new interpretative provision to define what
constitutes "connection" of a gaming machine to a CMS.
Schedule 4 [2] and [3] amends the provision dealing with the power of the
CMS licensee to collect gaming machine duty to enable the regulations to
include within the operation of the section gaming machines that are not
connected to the CMS, or to exclude gaming machines from its operation that
are connected to the CMS.
Schedule 4 [4] and [5] amend the Act to provide flexibility in respect of the
payment and collection of the monitoring fee payable by a registered club in
respect of gaming devices connected to the CMS. The regulations will be
able to provide for the manner and frequency of payment, to whom the fee is
payable and the collection and recovery of the fee.
Explanatory note page 10
Schedule 4 [6] expands a regulation making power that allows the transfer of
the Liquor Administration Board's functions with respect to gaming
machines that are connected or capable of connection to a CMS so that it will
apply to all gaming machines under the Act.
Schedule 4 [7] amends provisions dealing with licences to operate a linked
gaming system for clubs to provide that the licence is subject to a condition
that the licensee must have commercial arrangements with the racing industry
in place and give effect to them.
Schedule 4 [8] confers a broad exemption from the operation of Part IV of
the Trade Practices Act 1974 of the Commonwealth in respect of the grant of
the exclusive inter-club linked gaming system licence to TAB Limited (or a
subsidiary) and conduct under those licences.
Schedule 4 [9] replaces an existing provision for the payment of a fee
determined by the Minister for a linked gaming system licence with a
provision that provides for the payment of an amount determined by the
Minister as consideration for the grant of the licence and for payment of a
periodic licence fee.
Schedule 4 [10] amends a provision dealing with the term of a linked gaming
system licence to make it clear that the term of the licence is subject to any
earlier cancellation or surrender.
Explanatory note page 11