Gaming Machine (Club Governance) Amendment Act 2011 (ACT)

Case

Gaming Machine (Club Governance) Amendment Act 2011

A2011-24

Contents

Page

Part 1Preliminary

  1. Name of Act  2

  2. Commencement  2

  3. Legislation amended  2

Part 2Gaming Machine Act 2004

  1. Grounds for refusing initial licence application by club


    Section 14 (1) (a)  3

  2. Eligibility of clubs and other corporations


    New section 21 (1) (f) and (g)  3

  3. New section 21 (4)  4

  4. Conditions about inequitable benefits


    Section 53 (4) (a)  4

  5. New section 53 (4) (b) (iii)  4

  6. New sections 53A and 53B  5

  7. Annual report of clubs


    Section 54 (a)  5

  8. New section 54 (c)  6

  9. Other conditions of club licences


    Section 55 (d)  6

  10. New section 144A  7

  11. Section 147 heading  7

  12. Section 147 (2)  7

  13. New section 147 (2) (ba)  7

  14. Section 147 (2) (f)  8

  15. New section 147A to 147D  8

  16. Section 148 heading  10

  17. New section 148A  10

  18. New section 148B  11

  19. Approval of community contributions


    Section 164 (3), definition of contribution, new paragraph (b) (xvi)         11

  20. Required community contributions


    Section 169 (2) (a) and (3) (b)  12

  21. Problem gambling community contributions


    New section 171A (1A)  12

  22. Reviewable decisions


    Schedule 1, new items 34A and 34B  12

  23. Schedule 1, new item 34C  12

  24. Dictionary, new definitions  13

Part 3Gaming Machine Regulation 2004

  1. Section 73 heading  14

Gaming Machine (Club Governance) Amendment Act 2011

A2011-24

An Act to amend the Gaming Machine Act 2004 and the Gaming Machine Regulation 2004 in relation to the governance of clubs in the ACT

The Legislative Assembly for the Australian Capital Territory enacts as follows:

Part 1Preliminary

  1. Name of Act

    This Act is the Gaming Machine (Club Governance) Amendment Act 2011.

  2. Commencement

    (1)This Act (other than sections 9, 10, 11, 21, 26 and 28) commences, or is taken to have commenced, on 1 July 2011.

    NoteThe naming and commencement provisions automatically commence on the notification day (see Legislation Act, s 75 (1)).

    (2)Sections 9, 10, 11, 21, 26 and 28 commence on 1 July 2012.

  3. Legislation amended

    This Act amends the Gaming Machine Act 2004 and the Gaming Machine Regulation 2004.

Part 2Gaming Machine Act 2004

  1. Grounds for refusing initial licence application by club
    Section 14 (1) (a)

    substitute

    (a)payments for goods and services supplied to a club, including the rental or lease payments for the club’s premises, are related to the level of gaming machine performance; or

    Examples—goods and services

    ·food and beverages

    ·cleaning services

    ·gaming machines

    NoteAn example is part of the Act, is not exhaustive and may extend, but does not limit, the meaning of the provision in which it appears (see Legislation Act, s 126 and s 132).

  2. Eligibility of clubs and other corporations
    New section 21 (1) (f) and (g)

    insert

    (f)the corporation is not the subject of an auditor’s opinion that it is not able to pay all of its debts as and when they become due and payable; and

    (g)the corporation is not the subject of an auditor’s adverse opinion or disclaimer of opinion, within the meaning of Auditing Standard ASA 705.

  3. New section 21 (4)

    insert

    (4)In this section:

    AUASB means the Auditing and Assurance Standards Board established under the Australian Securities and Investments Commission Act 2001 (Cwlth), section 227AA (1).

    Auditing Standard ASA 705 means Auditing Standard ASA 705 Modifications to the Opinion in the Independent Auditor’s Report made by the AUASB on 27 October 2009 under the Corporations Act, section 336 (1) (Auditing standards).

    NoteA copy of the standard is accessible at

  4. Conditions about inequitable benefits
    Section 53 (4) (a)

    substitute

    (a)the person is offered the benefit (whether or not under the rules of the club) in the course of acting on behalf of the club while performing the person’s normal duties as an employee or director of the club; and

  5. New section 53 (4) (b) (iii)

    insert

    (iii)an expense relating to the person’s duties paid by someone else and authorised by a resolution of the club’s management committee or board.

    Example—expense paid by someone else

    conference fees

    NoteAn example is part of the Act, is not exhaustive and may extend, but does not limit, the meaning of the provision in which it appears (see Legislation Act, s 126 and s 132).

  6. New sections 53A and 53B

    insert

53ACondition about club’s constitution—consistency with gaming laws

It is a condition of a licence for a club that the club’s constitution is consistent with the gaming laws.

53BCondition about club’s constitution—amendment if inconsistent with gaming laws

(1)It is a condition of a licence for a club that the club’s constitution provides for the constitution to be amended in accordance with a direction by the commission under section 148B (Club constitution—consistency with gaming laws) without an election of the voting members of the club.

(2)This section is declared to be a corporations legislation displacement provision for the Corporations Act, section 5G (Avoiding direct inconsistency arising between the Corporations legislation and State and Territory laws).

NoteSubsection (2) ensures that any provision of the Corporations Act or the Australian Securities and Investment Commission Act 2001 (Cwlth) with which this section would otherwise be inconsistent does not apply to the extent necessary to avoid the inconsistency.

  1. Annual report of clubs
    Section 54 (a)

    substitute

    (a)any contractual arrangement or consultancy entered into with an influential person during the year, including—

    (i)the position the influential person occupies in the club; and

    (ii)the purpose of the arrangement or consultancy; and

    (iii)the total amount of the arrangement or consultancy for the year;

    (aa)any contractual arrangement or consultancy entered into during the year for more than the amount prescribed by regulation, including—

    (i)the purpose of the arrangement or consultancy; and

    (ii)the total amount of the arrangement or consultancy for the year;

  2. New section 54 (c)

    insert

    (c)if any benefits have been taken by a person during the financial year—

    (i)the person’s position in the club; and

    (ii)a description of the benefit taken by the person; and

    (iii)the purpose for which the benefit was taken; and

    (iv)the monetary value of the benefit; and

    (v)the name of the person who offered the benefit.

  3. Other conditions of club licences
    Section 55 (d)

    omit

  4. New section 144A

    in part 9, insert

144ADefinitions—pt 9

In this part:

associated organisation declaration means a declaration under section 147 (Associated organisations—declaration) that an entity is an associated organisation for a club.

warning notice, for an associated organisation—see section 147B (1).

  1. Section 147 heading

    substitute

  2. Associated organisations—declaration

  3. Section 147 (2)

    after

    declaration

    insert

    (an associated organisation declaration)

  4. New section 147 (2) (ba)

    insert

    (ba)it does not have the power to remove a director from the club’s board; and

  5. Section 147 (2) (f)

    omit

    approval

    substitute

    declaration

  6. New section 147A to 147D

    insert

147AAssociated organisation declaration—condition

It is a condition of an associated organisation declaration that the entity declared to be an associated organisation for a club—

(a)continually meets each requirement for the declaration; and

NoteFor the requirements for the declaration of an entity as an associated organisation for a club—see s 147 (2).

(b)continues not to do anything that would, if the commission were considering whether to declare the entity as an associated organisation for a club, cause the commission to refuse to make the declaration; and

(c)does not attempt to remove a director (including do anything a purpose of which is to remove a director) from the club’s board.

Note 1The Control Act, s 22 provides that the commission may, for a purpose related to the administration or enforcement of a gaming law, require a person to give or produce to the commission the things mentioned in that section.

Note 2The Control Act, s 23 provides that an authorised officer may enter and inspect the premises of an associated organisation at any reasonable time to do the things mentioned in that section.

147BAssociated organisation—warning notice

(1)If the commission is satisfied on reasonable grounds that an entity declared to be an associated organisation for a club has stopped meeting a requirement for the associated organisation declaration, the commission may give the entity a notice (a warning notice).

(2)A warning notice given to the entity must—

(a)state that the commission is not satisfied that the entity is meeting a requirement for the associated organisation declaration; and

(b)tell the entity that the entity may, within 3 weeks after the day the entity is given the notice (or a longer period stated in the notice), give a written response to the commission about the notice.

147CAssociated organisation declaration—suspension or repeal

(1)This section applies if—

(a)an associated organisation has been given a warning notice; and

(b)after considering any responses given within the period stated in the warning notice, the commission is satisfied on reasonable grounds that the associated organisation has stopped meeting a requirement for the associated organisation declaration applying to the organisation.

(2)The commission may—

(a)suspend the declaration; or

(b)repeal the declaration.

(3)If the commission suspends or repeals the declaration, the suspension or repeal takes effect—

(a)when the entity receives written notice of the suspension or repeal; or

(b)on a later stated date.

(4)If the commission suspends the declaration, the suspension ends—

(a)on a date stated in the written notice of the suspension; or

(b)when an event stated in the written notice happens.

147DClub elections—election of board directors

(1)This section applies if a club holds an election of directors to the club’s board.

(2)The club must ensure that at least 25% of the directors are elected by the voting members of the club.

  1. Section 148 heading

    substitute

  2. Club elections—record-keeping

  3. New section 148A

    insert

148AClub directors—acting in good faith

A director of a club must exercise the director’s powers and discharge the director’s duties—

(a)in good faith in the best interests of the club; and

(b)for a proper purpose.

  1. New section 148B

    insert

148BClub constitution—consistency with gaming laws

(1)This section applies if the commission believes on reasonable grounds that—

(a)a provision of a club’s constitution is inconsistent with a gaming law; or

(b)a function under a provision of a club’s constitution would, if exercised, be inconsistent with a provision of a gaming law.

(2)The commission must, in writing, direct the club to amend the constitution to remove the inconsistency.

(3)A club must comply with a direction under subsection (2) within the reasonable time stated in the direction.

(4)In this section:

club means a club in relation to whose premises a licence is in force.

  1. Approval of community contributions
    Section 164 (3), definition of contribution, new paragraph (b) (xvi)

    insert

    (xvi)the payment of a tax, fee or levy, other than a payment required under section 163A (1) (Required payment to problem gambling assistance fund).

  2. Required community contributions
    Section 169 (2) (a) and (3) (b)

    omit

    7%

    substitute

    8%

  3. Problem gambling community contributions
    New section 171A (1A)

    insert

    (1A)This section does not apply to a payment required under section 163A (1) (Required payment to problem gambling assistance fund).

  4. Reviewable decisions
    Schedule 1, new items 34A and 34B

    insert

34A 147C (2) (a) suspend declaration of associated organisation entity given warning notice
34B 147C (2) (b) repeal declaration of associated organisation entity given warning notice

  1. Schedule 1, new item 34C

    insert

34C 148B (2) give direction to amend club’s constitution club given direction

  1. Dictionary, new definitions

    insert

    associated organisation declaration, for part 9 (Club administration)—see section 144A.

    gaming law—see the Control Act, dictionary.

    warning notice, for an associated organisation, for part 9 (Club administration)—see section 144A.

Part 3Gaming Machine Regulation 2004

  1. Section 73 heading

    substitute

  2. Contractual arrangements and consultancies in annual report of clubs—Act, s 54 (aa)

Endnotes

  1. Presentation speech

    Presentation speech made in the Legislative Assembly on 5 May 2011.

  2. Notification

    Notified under the Legislation Act on 7 July 2011.

  3. Republications of amended laws

    For the latest republication of amended laws, see certify that the above is a true copy of the Gaming Machine (Club Governance) Amendment Bill 2011, which was passed by the Legislative Assembly on 28 June 2011.

    Clerk of the Legislative Assembly

    © Australian Capital Territory 2011

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