ALERT DIGEST 7 of 1994
Part 5
5.1
This Bill was introduced into the Legislative Assembly on 27 April 1994 The Honourable Alan Stockdale, the Treasurer with The Honourable Ian Smith.
5.2
This Bill establishes the legal framework for the float of the TAB as a public company. It deregulates the racing industry. More particularly, it makes provision for:-
- the business of wagering;
- the business of conducting approved betting competitions;
- the business of conducting gaming;
- the business of conducting club keno;
- the business of on-course wagering.
5.3
Clause 2 is the commencement provision. The Committee commends the forced commencement procedure.
Clause 3 sets out the various definitions. "Tabco" is the public company incorporated under the Corporations Law of Victoria called TABCORP Holdings Limited, ACN 063 780 709. The Authority means the Victorian Casino and Gambling Authority established under the Act.
5.4 ¯ Wagering licence and gaming licence
Part 2 relates to wagering and gaming licences. Clause 6 authorises the licensee of a wagering licence to conduct wagering and approved betting competitions. Clause 7 authorises the licensee of a gaming licence to conduct gaming machines and club keno games. Clause 11 provides that the Authority must be satisfied of certain matters before it recommends to the Governor-in-Council that a licence be granted. In determining a person's probity, the Authority may require that the person's fingerprints, photograph and palm prints to be taken and referred to the Chief Commissioner of Police. Pursuant to Clause 12. licences are granted for a term of 18 years. Clause 15 sets out the matters to be considered by the Authority in determining an application.
Clause 17 provides that the Authority may conduct such investigations and enquiries as it considers necessary to consider the application properly including the taking of fingerprints, palm prints and photographs which may be referred to the Chief Commissioner of Police. Clause 17 provides that the Authority may require further information including copies of relevant financial and confidential information.
The Committee has written to the Minister to request his advice as to the confidentiality of the information provided to the Authority.
Clause 19 provides that the Authority must notify the applicant in writing of its determination but is not required to give reasons for its decision. Clause 24 provides that the Authority may investigate a wholly owned subsidiary where an applicant has put in a request for the wholly owned subsidiary to operate the gaming licence.
Clause 27 provides that a director of the licensee or operator cannot hold more than 5% of the voting shares in the holder of a casino licence, cannot be a trustee or a beneficiary of the will and late estate of the late George Adams and cannot hold more than 5% of the voting shares of a gaming operator's licence. Pursuant to clause 28, the Authority may investigate the conduct of operations under a licence from time to time as it thinks fit. It may make a report to the Minister on the results of the investigation.
Clause 29 provides that the Operator must provide to the Authority such records and information as the Authority requires for the purposes of the investigation. The Authority may take copies of any information or records given. A person is not excused on the grounds that the provision of such information might tend to incriminate him or her., though he of she can give notice to the Authority in writing of the claim that the giving of such information might tend to incriminate him or her.
The Committee has written to the Minister to request his advice as to the confidentiality of the information provided to the Authority.
Clause 32 provides that if the Authority is satisfied that a licensee or operator has committed a breach of a condition of a licence or of the betting rules or of the Act, then the Authority may reprimand the licensee or operator or may impose a fine not exceeding $5 000 000. The licensee, after receiving the notice, has 7 days to remedy the breach or take steps to satisfy the Authority that steps have been taken to ensure a similar breach does not occur again. The Authority with the consent of the Minister may apply to the Supreme Court for cancellation of a wagering licence and a gaming licence. If the licences are cancelled, the Authority may appoint a temporary licensee.
5.5 ¯ On-course wagering permit
Part 3 relates to on-course wagering permits.
Clause 37 provides that a licensed club may apply for an on-course wagering permit. Clause 38 sets out the matters that the Authority must consider in determining an application. The Authority may investigate the application and conduct such inquiries as it considers necessary. The Authority may require a person to give his or her fingerprints. palm prints and photographs to the police. The Authority may request further relevant information in the form of records or other financial and confidential information. The Authority may copy the records.
The Committee has written to the Minister to request his advice as to the confidentiality of the information provided to the Authority.
Pursuant to clause 42, the term of the licence is 12 months. Clause 44 sets out the commissions, dividends and taxes that the holder of a permit may deduct and clause 45 sets out the tax which must be paid to the Treasurer. Clause 47 provides that the permit holder must pay to the Treasurer a supervision charge which is determined by the Treasurer in consultation with the Minister. Clause 48 provides that an amount of money equal to the wagering tax set out in clause 45 must be paid to the Consolidated Fund for the Hospitals and Charities Fund.
5.6 ¯ Regulation of shareholding interests
Part 4 relates to the regulation of shareholding interests.
Clause 53 sets out what constitutes a prohibited shareholding interest. It is an offence for a person to have a prohibited shareholding interest in the licensee. Clause 55 provides that the Minister has the power to require information relating to the entitlement to shares in a licensee. After service of the appropriate notice, the person must give the information required by the notice. Clause 56 provides that the Minister may make a declaration that the offender or person has a prohibited shareholding interest and may require that the offender or person to dispose of the relevant number of shares. If the person fails to dispose of the share, the shares are forfeited to the State.
The Committee has written to the Minister to request his advice as to the confidentiality of the information provided to him.
Clause 57 sets out the voting rights in respect of the shares in the licensee to which any person who has a prohibited shareholding interest is entitled. Clause 58 provides that the Minister may declare the resolution of a general meeting null and void, if the Minister is of the opinion that the resolution should not have been admitted by virtue of section 57, ie: voting rights in respect of certain shares. There is provision for an appeal to the Supreme Court from the declaration of the Minister.
5.7 ¯ Approved betting competitions
Part 5 relates to approved betting competitions.
Clause 64 provides that the Minister, may be instrument approve a betting competition and notice of the approval must be published as soon as practicable in the Government Gazette. The Minister may withdraw the approval by stating his reasons in writing.
5.8 ¯ Wagering and betting
Part 6 relates to wagering and betting.
Clause 69 provides that the use of the totalisator is lawful. Use of all equipment is subject to the approval of the Authority. The Authority may withdraw an authority given to the licensee or operator. Pursuant to clause 72 the licensee must make betting rules. Sub-clause (4) of section 72 provides that the betting rules may confer a discretionary authority or impose a duty on a specified person or class of persons.
5.9 ¯ Commissions, dividends and taxes
Part 7 relates to commissions, dividends and taxes.
Division 1 sets out the commissions, dividends and taxes in relation to wagering. Division 2 sets out the commissions, dividends and taxes in relation to totalisators in approved betting competitions. In respect of these divisions, the licensees must pay to the Treasurer a supervision charge which is determined by the Minister in consultation with the Minister. An equal amount to the amount set out in sections 74 and 75 must be paid to the Consolidated Fund for the Health and Charities Fund.
5.10 ¯ Victorian Casino and Gambling Authority
Part 8 establishes the Victorian Casino and Gambling Authority.
Clause 85 provides that the members of the Authority are appointed by the Governor-in-Council on the recommendation of the Minister. One of the members must be a serving member of the police force nominated by the Chief Commissioner of Police. The members may be appointed on a full-time or a part-time basis. A member holds office for a period of three years and must disclose any pecuniary interests. Clause 92 sets out the proceedings of the Authority at meetings. Clause 94 provides for funds to be paid to the Authority from the Consolidated Fund. The amount is to be determined by the Treasurer after consultation with the Minister.
5.11 ¯ Director of Gaming and Betting
Part 9 establishes the position of the Director of Gaming and Betting.
Clause 97 provides that the Director of Gaming and Betting is appointed by the Governor-in-Council for a term of three years but is eligible for re-appointment and cannot be older than 65 years of age. The remuneration is determined by the Governor-in-Council.
Clause 101 provides that the Director may, by an instrument in writing, delegate to a member of the Authority, an inspector, an authorised person, a member of the staff of the Director or to the Director of Casino Surveillance, all or any of the powers of the Director under the Act. The Committee notes that whilst the Director may delegate any of the powers under the Act, the recipients of the delegation are specified. The Committee also notes that the delegation must be made by instrument in writing.
Clause 102 sets out the functions of the Director.
5.12 ¯ Inspectors
Part 10 relates to Inspectors.
Clause 104 provides that the Director may appoint inspectors and may make any investigations necessary to investigate the person's suitability for appointment. The Director may require the person to have his or her palm prints, finger prints and photographs taken. The palm prints, finger prints and photographs may be referred to the police. Clause 106 provides that the Inspectors must be identified. Clause 107 sets out the rights of Inspectors to enter premises. The Inspectors must produce identification on request. Clause 108 sets out the functions of the Inspectors. Clause 109 sets out the powers of the Inspectors. The Inspectors may seize any machinery or records which relate to the totalisator or records. If the Inspectors seize any records, they must provide certified copies of the records, within a reasonable time to the person from whom they seized the material. A person is not required to answer a question from an Inspector which might incriminate him or her.
Clause 109 provides that an Inspector may with the consent of the Director apply to a magistrate for the issue of a search warrant. A search warrant issued under the section has a life of one month. Clause 111 sets out the offences and penalties relating to the obstruction of inspectors.
5.13 ¯ Offences
Part 11 establishes the offences under the Act including acceptances of bets from minors and offences relating to totalisators. Other offences include bribery, forgery, extending credit, forms of inducements and cheating.
5.14 ¯ General provisions
Part 12 sets out general provisions in relation to banking, the keeping of accounts, the submission of reports and the audit of operator and permit holders. Clause 127 sets out the provisions in relation to secrecy. A person is not required to produce documents or divulge information acquired by the performance of his duties except where the Minister certifies that it is necessary in the public interest that the information be so divulged. Clause 128 sets out the provisions which relate to the conflict of interest and duty. Clause 129 provides that anything done by the Authority or an authorised person does not subject the person to any personal liability if he or she acted in good faith for the purposes of the Act.
Clause 130 sets out when finger prints or palm prints must be destroyed. Clause 132 sets out the offence and penalties for false and misleading information. Clause 135 provides that the Authority may require the applicant for a permit or a licence to pay the reasonable costs of investigation of the application. Clause 142 gives the Governor-in-Council the power to make regulations with respect to various matters.
5.15 ¯ Staff and property of TAB - transfer to TABCORP
Part 13 establishes the mechanisms for the transfer of TAB staff to TABCORP Holdings Ltd and its subsidiaries with provisions to safeguard the entitlements of transferred staff. It also provides the mechanism by which property, rights and liabilities of the TAB are allocated to either TABCORP Holdings Ltd or its subsidiaries or the State.
5.16 ¯ Transitional provisions
Part 14 contains transitional provisions.
5.17 ¯ Amendment of the Racing Act 1958
Part 15 amends the Racing Act 1958 to remove obsolete or redundant provisions to deregulate the conduct of racing, except in relation to matters of probity and public interest.
5.18 ¯ Amendment of the Gaming Machine Control Act 1991
Part 16 amends the Gaming Machine Control Act 1991.
5.19 ¯ Amendment of the Club Keno Act 1993
Part 17 amends the Club Keno Act 1993.
5.20 ¯ Amendment of other Acts
Part 18 amends various other Acts to ensure consistency.
5.21 ¯ Variation of section 85 of Section 85 of the Constitution Act 1975 (Section 4D(b)(i)(ii) and (iii) of the Parliamentary Committees Act 1968)
Clause 141(a) of the Bill states its intention to alter or vary section 85 of the Constitution Act 1975 to the extent necessary to prevent the bringing before the Supreme Court of actions in respect of acts or omissions referred to in clause 62.
Clause 62 provides that no liability attaches to the Minister, the Authority or the licensee or any officer or auditor of the licensee for any act or omission in good faith and in the exercise or discharge or purported exercise or discharge of a power or duty under Part 4 governing the regulation of shareholdings. The Committee notes the comments in the Second Reading Notes: -
"The reason for preventing such an action is to ensure that the maximum level of shareholdings stipulated in the Bill can be enforced by a relatively simple procedure and without prejudice to the interests of other shareholders."
The Committee reports that the proposed provision is appropriate and desirable in all the circumstances.
Clause 141(b) states its intention to alter or vary section 85 of the Constitution Act 1975 to the extent necessary to prevent the bringing before the Supreme Court of actions in respect of a right or interest referred to in clause 203.
Clause 203 extinguishes any right or interest of a club in money or other property of or held by the TAB whether arising under section 116Q of the Racing Act 1958 or in any other way whatsoever and subsisting immediately before the commencement of clause 203. The Committee notes the comments in the Second Reading Notes: -
"The reason for preventing such actions is to ensure that the arrangements affecting the TAB and the racing industry implemented in the Bill are in full-time settlement of any outstanding rights and interests in property of the TAB."
The Committee reports that the proposed provision is appropriate and desirable in all the circumstances.
