National Lottery Bill [H.L]

House of Commons

Session 1997-98
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Arrangement of Clauses (Contents)

National Lottery Bill [H.L]

A
B I L L
[AS AMENDED IN STANDING COMMITTEE A]
INTITULED
An Act to make further provision in relation to the National Lottery; to make provision for and in connection with the establishment of a body corporate to be endowed out of the National Lottery Distribution Fund and to be known as the National Endowment for Science, Technology and the Arts; and for connected purposes.
BE IT ENACTED by the Queen's most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:-

PART I

PROVISIONS RELATING TO THE NATIONAL LOTTERY

The Director General and the National Lottery Commission

Replacement of Director General by National Lottery Commission.     1. - (1) There shall cease to be an office of Director General of the National Lottery.

    (2) In consequence of subsection (1) above, in the National Lottery etc. Act 1993 (in this Act referred to as "the 1993 Act") section 3 and Schedule 2 (which relate to the Director General of the National Lottery) shall cease to have effect.

    (3) After section 3 of the 1993 Act there shall be inserted-

"The National Lottery Commission.     3A. - (1) There shall be a body corporate known as the National Lottery Commission.

    (2) Schedule 2A makes provision in relation to the Commission."

    (4) On the day on which this subsection comes into force under section 27(3) below, the functions conferred or imposed on the Director General of the National Lottery by or under the 1993 Act (including any functions so conferred or imposed by virtue of this Act) shall, by virtue of this subsection, be transferred to the National Lottery Commission.

    (5) Schedule 1 to this Act (which makes provision supplemental to, or consequential on, this section) shall have effect.

Licensees

Financial penalties for breach of conditions in licences.     2. - (1) After section 10 of the 1993 Act (revocation of licences) there shall be inserted-

"Financial penalties for breach of conditions in licences.     10A. - (1) If the Director General is satisfied that a person has contravened a condition in a licence under section 5 or 6, he may impose a financial penalty on that person in respect of the contravention.

    (2) The matters to which the Director General may have regard in imposing a financial penalty include the desirability of both-

(a) deterring persons from contravening conditions in licences under section 5 or 6, and

(b) recovering any diminution in the sums paid to the Secretary of State under section 5(6) which is attributable to the contravention.

    (3) If the Director General proposes to impose a financial penalty on a person, he shall serve on that person a notice-

(a) stating that the person has contravened conditions in the licence,

(b) identifying the contraventions in question,

(c) stating that the Director General proposes to impose a financial penalty,

(d) specifying the amount of the financial penalty,

(e) stating the Director General's reasons-

(i) for the imposition of a financial penalty, and

(ii) for the amount of the financial penalty,

(f) stating the person to whom the financial penalty is to be paid and the manner in which, and place at which, payment may be made, and

(g) stating the effect of subsections (5) and (12).

    (4) A notice under subsection (3) must state that the person may, within the period of 21 days beginning with the date of the notice, either-

(a) make written representations about the matter to the Director General, or

(b) notify the Director General in writing of the person's intention to make oral representations,

and that the right of appeal conferred by section 10B is dependent on the person having made such written or oral representations.

    (5) If, within the period mentioned in subsection (4), the Director General receives neither-

(a) written representations, nor

(b) written notification of the person's intention to make oral representations,

the financial penalty shall become payable at the end of that period.

    (6) The Secretary of State may make regulations as to the procedure to be followed where a person's intention to make oral representations is notified to the Director General as mentioned in subsection (4).

    (7) The regulations may in particular make provision-

(a) for the financial penalty to become payable if the person fails to comply with any requirements imposed by or under the regulations, and

(b) as to the hearing by the Director General of oral representations.

    (8) If-

(a) any written representations against the imposition of the financial penalty are made as mentioned in subsection (4), or

(b) any oral representations against the imposition of the financial penalty are made in accordance with regulations under subsection (6),

subsection (9) shall apply.

    (9) Where this subsection applies, the Director General shall after taking the representations into account-

(a) decide whether or not to impose a financial penalty, and

(b) serve a further notice on the person informing the person of the decision.

    (10) Where the decision is to impose a financial penalty, the further notice must-

(a) identify the contraventions in question,

(b) specify the amount of the financial penalty imposed,

(c) state the Director General's reasons-

(i) for the imposition of a financial penalty, and

(ii) for the amount of the financial penalty,

(d) state the person to whom the financial penalty is to be paid and the manner in which, and place at which, payment may be made, and

(e) state the effect of subsections (11) and (12).

    (11) A financial penalty imposed by virtue of a decision under subsection (9) becomes payable on the date of the further notice.

    (12) A person on whom a financial penalty is imposed is required to pay the penalty within the period of fourteen days beginning with the date on which the financial penalty becomes payable.

    (13) If the whole or any part of a financial penalty is not paid within the period mentioned in subsection (12), then as from the end of that period the unpaid balance from time to time shall carry interest at the rate for the time being specified in section 17 of the Judgments Act 1838.

    (14) A financial penalty imposed on any person, and any interest accrued under subsection (13) in respect of the penalty, shall be recoverable from that person as a debt due to the Secretary of State from that person (and the person's liability to pay it shall not be affected by the person's licence ceasing for any reason to have effect)."

    (2) In section 11 of the 1993 Act (directions to the Director General in respect of his functions under sections 5 to 10) for "sections 5 to 10" there shall be substituted "sections 5 to 10A".

    (3) In section 21 of the 1993 Act, in subsection (2) (Secretary of State to pay into the National Lottery Distribution Fund all the sums paid to him by virtue of section 5(6)) after "section 5(6)" there shall be inserted "or 10A".

    (4) In Schedule 1 to the Tribunals and Inquiries Act 1992 (tribunals under the supervision of the Council on Tribunals) in the second column, in paragraph 33A (National Lottery: functions of the Director General etc under specified provisions of the 1993 Act) for "section 10" there shall be substituted "sections 10 and 10A".

    (5) Subsection (1) above has effect in relation to any contravention, after the coming into force of that subsection, of a condition in a licence under section 5 or 6 of the 1993 Act, whenever granted.

Appeals against financial penalties.     3. After section 10A of the 1993 Act (financial penalties for breach of conditions of licences) there shall be inserted-

"Appeals against financial penalties.     10B. - (1) Where the Director General decides under subsection (9) of section 10A to impose a financial penalty on a person, the person may appeal against the decision on the grounds specified in subsection (2) or, as the case may be, subsection (3).

    (2) To the extent that an appeal under this section is against a finding by the Director General that a person contravened a condition of a licence, the grounds for the appeal are-

(a) that the Director General made an error as to the facts,

(b) that there was a material procedural error, or

(c) that the Director General made some other error of law.

    (3) To the extent that an appeal under this section is against the amount of a financial penalty, the grounds for the appeal are-

(a) that the amount of the penalty is unreasonable,

(b) that there was a material procedural error, or

(c) that the decision was based on a manifest material misapprehension as to the facts.

    (4) Where on an appeal under this section a court reduces the amount of a financial penalty, the powers of the court shall include power to make such orders as to interest on the penalty as the court considers just and equitable in all the circumstances of the case.

    (5) The power conferred by subsection (4) includes power to make orders as to-

(a) the rates of interest which are to apply, and

(b) the date from which interest is to run.

    (6) An appeal under this section lies to the High Court or, in Scotland, to the Court of Session.

    (7) Any appeal under this section to the Court of Session shall be heard in the Outer House."

© Parliamentary copyright 1998
Prepared 13 May 1998