New South Wales Consolidated Acts

PUBLIC LOTTERIES ACT 1996 - SECT 17

17 Disciplinary action against licensee

(1) In this Part, "disciplinary action" means any one or more of the following actions in relation to a licence:

(a) the cancellation or suspension of the licence,

(b) the imposition on the licensee of a monetary penalty (not exceeding $250,000),

(c) the alteration of the conditions of the licence by the Minister (other than under section 15),

(d) the service of a letter of reprimand by the Minister on the licensee.

(2) If a licensee:

(a) fails to comply with this Act or the regulations, or

(b) fails to comply with the rules, or

(c) fails to comply with a condition of the licence or a direction given to the licensee under Division 2 of Part 7, or

(d) fails to use reasonable endeavours to ensure that the licensee’s agents comply with this Act, the regulations or any direction given by the Minister under Division 2 of Part 7, or

(e) being a natural person:

(i) becomes bankrupt, applies to take the benefit of any law for the relief of bankrupt or insolvent debtors, compounds with his or her creditors or makes an assignment of his or her remuneration for their benefit, or

(ii) becomes an incapacitated person and incapable of conducting a public lottery in accordance with this Act, or

(iii) is convicted of an offence involving fraud or dishonesty, or

(f) being a corporation:

(i) enters into or authorises a dealing with or in respect of shares of, or other instruments issued by, the corporation without the consent in writing of the Minister that, in the opinion of the Minister, affects the control of the corporation, or

(ii) becomes an externally administered corporation within the meaning of the Corporations Act 2001 of the Commonwealth, or

(iii) fails to terminate promptly the employment of a person concerned in the management of the licensee who is convicted of an offence involving fraud or dishonesty,

the Minister may serve on the licensee a notice in writing affording the licensee an opportunity to show cause within 14 days (or such longer period as the Minister may specify in the notice) why disciplinary action should not be taken against the licensee on the ground specified in the notice.

Note: Division 2 of Part 7 enables the Minister to give directions to licensees and other persons engaged in the conduct of public lotteries on a licensee’s behalf to protect the integrity of public lotteries and to require the termination of arrangements between licensees and agents and the employment of key employees of licensees for a similar purpose.

(3) The licensee may, within the period allowed by the notice, arrange with the Minister for the making of submissions to the Minister as to why disciplinary action should not be taken and the Minister is to consider any submissions so made.

(4) The Minister may then decide that it is appropriate that certain disciplinary action be taken against the licensee and may either:

(a) take that disciplinary action by giving written notice of the action to the licensee, or

(b) as an alternative to taking that disciplinary action, take action under section 18.

(5) Disciplinary action may be taken against a person whether or not the person has been prosecuted, convicted or penalised for any contravention that is the grounds for the action.

(6) Disciplinary action takes effect when notice of it is given or on a later date specified in the notice.

(7) The fact that disciplinary action is taken by the Minister under this section does not prevent the Minister from taking the same or other disciplinary action under this section if the contravention continues or a fresh contravention occurs.

(8) A monetary penalty imposed under this section may be recovered as a debt due to the Crown in a court of competent jurisdiction.