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Gaming Machine Amendment Bill 2001
GAMING MACHINE AMENDMENT BILL
2001
EXPLANATORY NOTES
Short Title
Gaming Machine Amendment Bill 2001
Objectives of the Legislation
The Gaming Machine Amendment Bill 2001 gives force to the objective
of the Gaming Machine Act 1991 which aims to ensure that, on balance, the
State and community as a whole benefit from machine gaming. The
changes proposed in the Bill include:
· Creation of the Major Facilities Fund accounts to finance major
public sporting and cultural developments of statewide
significance and associated infrastructure.
· Imposition of a Major Facilities Levy on the profits of machine
gaming in category 1 licensed premises.
· Removing the scope to accept applications for gaming machines
in category 1 licensed premises.
· Decreasing the number of approved gaming machines at a
premises where the premises has not been operating the approved
number of machines for a determined period.
Reasons for the Legislation
Gaming machines were originally introduced in Queensland to assist the
ailing club industry. Consequently, it is of concern that the most significant
recent growth in gaming machine numbers and profit in Queensland has
occurred in hotels. At the same time the community has expressed the
view that there are sufficient gaming machines in the community and no
further expansion is needed.
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Gaming Machine Amendment Bill 2001
The Government responded to community concerns in December 2000
by introducing a new objective to all gaming legislation regarding the need
for the community to benefit from gambling. This Bill reinforces the
Government's commitment to maximising community benefit from
machine gaming and to promoting responsible gambling. This is
evidenced by the Bill creating an environment which caps any future
growth in machine gaming in category 1 licensed premises and through the
creation of a major facilities levy based on the large profits from machine
gaming in category 1 licensed premises.
Estimated Cost for Government Implementation
There are no significant costs arising from the legislation, albeit some
cost will be incurred in systems changes needed to implement the major
facilities levy.
Assessment of Bill's Consistency with Fundamental Legislative
Principles
This legislation has been prepared taking into consideration fundamental
legislative principles. A deviation from these principles occurs in relation
to the retrospective nature of clauses 3, 4, 6 and 8 which give effect to the
announcement made on 8 May 2001 that there would be a cap on gaming
machine numbers in hotels. If the Government introduced legislation to
place a cap on gaming machines without retrospectivity it was probable
that there would have been a large number of applications made between
the introduction of the legislation and its commencement. Evidence of this
can be seen in the artificially stimulated increase in applications at the time
of the 1999 Gaming Review, where elements of the gaming machine
industry believed that a cap would be set as a result of the Review.
Notwithstanding the Government's intention to institute a cap without
producing protective applications, the Bill allows a limited extension of
time for certain liquor licence applicants to also apply for a gaming
machine licence. In addition, all applications on hand at 8 May 2001 and
those subsequently received by 5 pm on 29 June 2001 from applicants for
general liquor licences will continue to be dealt with by the Queensland
Gaming Commission ("the Commission") until 31 December 2001.
There is no right of appeal against the lapsing of applications not
determined by the Commission by 31 December 2001. The Bill
nevertheless provides that those applicants who are able to demonstrate to
the Commission that there are exceptional circumstances surrounding their
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Gaming Machine Amendment Bill 2001
application may continue to be able to have their application dealt with by
the Commission. In addition, the existing right of appeal against the
Commission refusing to grant a gaming machine licence within the period
to 31 December 2001 remains unaffected.
Clauses 11 to 16 do not have retrospective commencement, but do
contain a retrospective element because all taxes and levies are collected
monthly in arrears on the tenth day of the month in which they become
payable.
New section 400 under clause 17 protects the State and departmental
officers from action arising from not dealing with applications which are
retrospectively invalid. The section confers immunity on the State and
departmental officers who have been effecting the Government's policy of
capping gaming machine numbers in category 1 licensed premises.
Consultation
Government consultation has taken place, with the Departments of the
Premier and Cabinet, Tourism, Racing and Fair Trading, State
Development, Department of Employment and Training and the
Department of Primary Industries. In addition, the Queensland Hotels
Association were consulted in relation to the rates to be imposed for the
major facilities levy.
NOTES ON PROVISIONS
PART 1--PRELIMINARY
Short Title
Clause 1 sets out the short title of the Act.
Commencement
Clause 2 provides that the commencement of sections 3, 4, 6 and 8 are
taken to have commenced at midday on 8 May 2001.
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Gaming Machine Amendment Bill 2001
PART 2--AMENDMENT OF GAMING MACHINE ACT
1991
Clause 3 notes that Part 2 amends the Gaming Machine Act 1991.
Clause 4 amends section 2 to insert definitions of category 1 and
category 2 licensees and a definition for "liquor licence transfer
application".
Clause 5 removes a previous reference that no longer has application.
Clause 6 amends section 56 to clarify that those entities specified in
(1)(a) to (c) are the only entities eligible to make an application for a
gaming machine licence. This clause also provides for some consequential
amendments to subsections (2), (5) and (6). The clause gives retrospective
effect to the Government's policy of capping gaming machine numbers in
category 1 licensed premises. The clause removes the ability for holders of
or applicants for general liquor licences from applying for gaming machine
licences. It also prevents applications from holders of on-premises and
special facility premises licences and subsidiary operators (other than non-
proprietary clubs). As premises relating to such applications are category 1
licensed premises it is necessary to also remove the ability for holders of
such licences to apply for a gaming machine licence in order to give effect
to the Government's policy.
Clause 7 amends section 78 to use the language relating to a transfer in a
consistent manner.
Clause 8 amends section 81 to retrospectively clarify that from midday
on 8 May 2001, only category 2 (club licensees) may make an application
to increase gaming machine numbers. This operates with clause 6 to
implement the cap on gaming machine numbers in category 1 licensed
premises.
Clause 9 amends section 86 to expand the circumstances in which an
inspector may recommend a reduction in the approved number of gaming
machines at licensed premises. Inspectors will now be able to make such
recommendations where, for at least three (3) months within a six (6)
month period, a licensee has not continuously operated one (1) or more of
the licensee's approved number of gaming machines, except where the
machines are stored with the chief executive's approval or are under
examination by a licensed repairer. This amendment reflects the
Queensland Gaming Commission's current requirement that a licensed
premises which is granted an increase to their approved number of gaming
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Gaming Machine Amendment Bill 2001
machines must install the additional machines within six (6) months of the
Commission's decision. "Entitlements" to machines at category 1 licensed
premises which are reduced via this mechanism may be able to be re-
allocated at a later date once the quantum of the category 1 cap has been
established.
Clause 10 inserts two (2) new divisional headings.
Clause 11 inserts new divisional headings and inserts a new section
316A which sets out the purpose for which the Major Facilities Levy
accounts may be used. A new section 316B is inserted which provides that
category 1 licensees must pay the major facilities levy to the chief
executive monthly in arrears on the day and at the percentage prescribed in
the regulation. It also clarifies that the levy is additional to gaming
machine tax. There will be a series of rates prescribed in the regulation
increasing in quantum as licensees' monthly taxable metered win
increases. The clause additionally inserts section 316C which provides for
the way in which the levies are to be accounted and recorded.
Clause 12 amends section 317 so that the section deals with levies as
well as taxes and penalties and ensures consistent terminology is used to
describe gaming machine tax.
Clause 13 makes a minor technical amendment to section 322 to include
the new levy and ensure consistent terminology regarding gaming machine
tax.
Clause 14 amends section 323 to include the new levy.
Clause 15 makes a minor technical amendment to section 324 to include
the new levy and recovery of amounts by the chief executive.
Clause 16 makes a minor technical amendment to section 325 to include
the new levy and remove obsolete language.
Clause 17 inserts a new divisional heading and three new transitional
sections. The new section 399 explains the requirements and limitations on
the continued processing of applications made under section 56 or section
81 before midday on 8 May 2001 as well as applications made under the
Liquor Act 1992 for a general liquor licence before midday on 8 May 2001
which had not been issued with such a liquor licence before midday on 8
May 2001 and which subsequently made an application for a gaming
machine licence at or before 5 pm on 29 June 2001. The section clarifies
that all three (3) types of applications will lapse on 31 December 2001 and
thereby places an onus on all applicants to respond in a timely manner to
all requests for further information made by the chief executive or
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Gaming Machine Amendment Bill 2001
Commission, such as requests to provide a community impact statement in
the form required by the Commission. An extension to the lapsing date
may be granted if the applicant applies for a deferral of the lapsing by 30
November 2001 and the Queensland Gaming Commission is satisfied on
material provided by the applicant that there are exceptional circumstances
surrounding the application. The maximum period for which lapsing is
able to be deferred is until 30 June 2002, after which the application will
lapse if it has not been decided by the Commission. It is anticipated that
failure to gain town planning approvals, or failure to be issued with a liquor
licence will not generally qualify as exceptional circumstances. The
Commission requires new licensees to install their approved numbers of
machines within 12 months. Accordingly, extending the final lapsing date
for exceptional circumstances to 30 June 2002, will ensure that the final
numbers of gaming machines in category 1 premises will be established by
June 2003. The new section 400 provides that any applications made after
midday on 8 May 2001 that may no longer be made due to the retrospective
application of clauses 6 and 8 are invalid and consequently no action can be
taken against the State or departmental officers for failing to deal with such
applications and any action underway must be dismissed. It also clarifies
that such applications must not be dealt with. Finally, this clause inserts a
new section 401 to clarify that the major facilities levy will be payable for
July 2001 and each month thereafter.
PART 3--MINOR AMENDMENTS OF OTHER ACTS
Clause 18 provides for a schedule of minor amendments to the Lotteries
Act 1997 and the Keno Act 1996.
© State of Queensland 2001