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1
Gaming Machine Amendment Bill
GAMING MACHINE AMENDMENT BILL
1993
EXPLANATORY NOTE
GENERAL OUTLINE
Objectives of the Legislation
The proposed legislation will enhance the discretionary powers of the
Queensland Machine Gaming Commission, create the Gaming Machine
Community Benefit Fund, provide for a sliding scale Gaming Machine
Community Benefit Levy for the larger clubs and re-apportion the revenue
raised therefrom and also make minor administrative amendments to the
Gaming Machine Act 1991.
Reasons for the Bill
1. Currently the Queensland Machine Gaming Commission lacks the
legislative power to refuse to grant an application for a gaming machine
licence in circumstances where all licensing criteria contained in the Gaming
Machine Act are met but where an approach which is in breach of the
genuine bona fide non-proprietary club ethos is evident.
2. The advent of gaming machines has coincided with a reported
reduction in the amount of funds donated to community welfare
organisations. However, Budget imperatives have meant that the Charities
and Rehabilitation Levy paid by hotels with gaming machines have largely
been used to fund Family Services portfolio programs and initiatives.
Clubs have to date not been required to pay this levy. However, it is
considered that an increasing tax scale is appropriate for the larger clubs
earning excess profits.
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Gaming Machine Amendment Bill
Estimated Cost for Government Implementation
There will be no cost for Government.
Consultation
Industry groups and relevant Government Departments have been
consulted and raised no major objections.
NOTES ON PROVISIONS
Clause 1 Short title provides for the legislation to be cited as the Gaming
Machine Amendment Act 1993.
Clause 2 The Gaming Machine Act is to be amended.
Clause 3 The Act will commence when proclaimed. It is intended that
the Act will commence on 1 December 1993.
Clause 4 Amends interpretation section 1.3.
. Amends the definition of club liquor licence, liquor licence and
prescribed liquor licence to extend the eligibility qualifications for
applicants for gaming machine licences. The definition of club
liquor licence has been expanded to make provision for a club
making application for a gaming machine licence, where it's
licensed premises are situated on Commonwealth land and where
the club holds an authority to sell liquor under a Commonwealth
Act (e.g. Federal Airports Corporation Act 1986). Furthermore,
the definition of a liquor licence has been widened to include
persons who may hold an authority to sell liquor under an Act
other than the Liquor Act 1992 (e.g. Wine Industry Act 1974)
and for non-club liquor outlets on Commonwealth land, but
prescription by the Governor-in-Council in each instance is a pre-
requisite.
. Includes a definition of arrangement to clarify the meaning of the
term as it relates to disclosures by licensees and applicants for
gaming machine licences.
. Includes a definition of betting unit to allow for the tokenisation
of gaming machines whereby it will be possible to use $1.00
coins to play either 5¢, 10¢ or 20¢ gaming machines.
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Gaming Machine Amendment Bill
. Includes a definition of conviction to clarify the meaning of the
term referred to in the new sections 3.3B(3) and 4.6(3) relating to
changes in circumstances of applicants for and holders of all
licences under the Act and the show cause provisions of the
legislation.
Clause 5 Amends section 2.25 which deals with assistance to the
Director, Machine Gaming Division by the Police Service. The amendment
rectifies a wording inconsistency and has no effect on the meaning of the
section.
Clause 6 Amends section 3.3 which deals with Commission
consideration of applications by clubs for gaming machine licences. The
amendment provides the Queensland Machine Gaming Commission with
the discretion to refuse to grant applications by clubs for gaming machine
licences in certain circumstances e.g. "entrepreneurial" or externally
controlled clubs. No specific guidelines can be defined as the Commission
must assess for each application, in accordance with the provisions set out
in the clause, the level of bona fide club ethos as opposed to the degree of
private gain or external involvement. Where the latter condition is assessed
as dominant, the Commission is obliged to deny the granting of a gaming
machine licence.
Clause 7 Provides new sections 3.3A and 3.3B and ensures (a) that clubs
do not operate at more than one site without good reason and (b) that
applicants for and holders of gaming machine licences notify any changes
in their circumstances which impact upon information already held by the
Machine Gaming Division.
Clause 8 Amends section 3.24 which deals with the cancellation or
suspension of gaming machine licences. The amendment strengthens the
cancellation or suspension provision for show cause action against
"entrepreneurial" or externally controlled clubs.
Clause 9 Amends section 3.32 which deals with the continuance of a
gaming machine licence in the event of the death of the licensee or, when
the licensee is a corporation, receivership. The amendment ensures that the
person appointed to administer the affairs of the licensee takes responsibility
for any outstanding debts of gaming machine rentals, taxes, levies and
penalties due and payable by the licensee.
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Gaming Machine Amendment Bill
Clause 10 Amends section 4.6 which deals with the requirement by
applicants for or holders of machine managers, service contractors or
repairers licences to notify changes in information already held by the
Machine Gaming Division. The amendment clarifies the type of changes
which need to be notified.
Clause 11 Amends section 8.1 which deals with the assessment of taxes
and levies payable by a licensee based on gross monthly turnover. The
amendment clarifies the period covered by the assessment for the purpose
of determining the new gaming machine community benefit levy payable
by the licensee.
Clause 12 Provides new sections 8.5A and 8.5B which create the
gaming machine community benefit levy and establish the Gaming
Machine Community Benefit Fund and the Gaming Machine Community
Benefit Committee.
Clause 13 Amends section 8.10 which deals with the manner in which
all fees, taxes, levies and penalties received under the Act are disposed. The
amendment provides for the Minister responsible for the administration of
the Gaming Machine Community Benefit Fund to cause monies to be paid
out of the fund for the benefit of the community.
THE SCHEDULE
Minor and Consequential Amendments
In accordance with current practice the opportunity has been taken to
make provision in the Act for written reasons to be supplied in
circumstances which result in the
(a) refusal of an application; or
(b) suspension of a licence; or
(c) imposition or variation of conditions on a licence; or
(d) removal of a name from the Rolls of manufacturers and
suppliers; or
(e) withdrawal of an approval of a gaming machine type or game.
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Gaming Machine Amendment Bill
Certain amendments in the schedule make minor changes subordinate to
the amendments in clauses 4 to 13 of the Bill. Other minor amendments in
the schedule will -
. remove the requirement that a licensee must authorise a machine
manager in writing;
. enhance safety requirements;
. allow tokenisation of gaming machines;
. streamline the procedure for renewal of licences;
. streamline certain licensing procedures which link the Machine
Gaming Division and the Liquor Licensing Division;
. remove the requirement to maintain a gaming machine entry log;
. strengthen the requirement qualification of accountants
preforming audits of gaming machine accounts;
. specify audit requirements for former licensees;
. impose restrictions upon former officers of the Machine Gaming
Division.
© The State of Queensland 1993