National Lottery Bill

House of Commons

Session 2005 - 06
Internet Publications
Other Bills before Parliament

National Lottery Bill

National Lottery Bill
1

A
Bill
[AS AMENDED IN STANDING COMMITTEE A]
To
Make provision about the National Lottery.
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:—
National Lottery Commission
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Constitution
(1)
Schedule 2A to the National Lottery etc. Act 1993 (c. 39) (National Lottery
Commission) shall be amended as follows.
(2)
For paragraph 2(1) substitute—
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    “(1)
The Commission shall consist of at least five members, appointed by
the Secretary of State.”
(3)
For paragraph 4 substitute—
“4    (1)
The Secretary of State shall appoint a member of the Commission as
chairman.
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      (2)
A member of the Commission who is also an employee of the
Commission may not be appointed as chairman.
      (3)
The chairman shall hold and vacate office in accordance with the
terms of his appointment; but—
(a)
sub-paragraphs (2) to (5) of paragraph 3 shall apply to the
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office of chairman as they apply to the office of member, and
(b)
if the chairman ceases to be a member he shall cease to be
chairman.”

Bill 72 54/1

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(4)
After paragraph 6 insert—
“6A   (1)
The Secretary of State may appoint the Chief Executive of the
Commission as a member.
      (2)
Where the Chief Executive is appointed as a member—
(a)
paragraph 5 shall not apply to him, and
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(b)
if he ceases to be Chief Executive he ceases to be a member.
      (3)
Where the Chief Executive is appointed as a member the Secretary of
State may, on the recommendation of the Commission, appoint
another employee of the Commission as a member; and—
(a)
paragraph 5 shall not apply to a person appointed by
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virtue of this sub-paragraph,
(b)
the Secretary of State may suspend or terminate an
appointment made by virtue of this sub-paragraph if the
Chief Executive ceases to be a member, and
(c)
if a person appointed by virtue of this sub-paragraph
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ceases to be an employee of the Commission he shall cease
to be a member.”
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Disclosure of information
After section 4A of the National Lottery etc. Act 1993 (c. 39) (consultation with
Gambling Commission: inserted by the Gambling Act 2005) insert—
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“4B
Disclosure of information
(1)
The Commissioners for Her Majesty’s Revenue and Customs may
disclose information to the National Lottery Commission.
(2)
The National Lottery Commission may disclose information to the
Commissioners for Her Majesty’s Revenue and Customs.
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(3)
Information disclosed under this section shall not be further disclosed
except in accordance with subsection (4).
(4)
Information may be further disclosed—
(a)
for the purpose of complying with an enactment,
(b)
in pursuance of an order of a court,
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(c)
for the purpose of legal proceedings connected with the
operation of an enactment relating to lotteries,
(d)
with the consent of the Commissioners for Her Majesty’s
Revenue and Customs,
(e)
with the consent of each person to whom the information
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relates, or
(f)
to the National Audit Office for the purposes of the exercise of
functions under Part II of the National Audit Act 1983 (c. 44).
(5)
This section has effect despite any prohibition or restriction that would
otherwise prevent disclosure of information.
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4C
Wrongful disclosure
(1)
This section applies to a person—
(a)
who is or was an officer or employee of the National Lottery
Commission, or

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(b)
who acts or acted on behalf of the National Lottery
Commission.
(2)
A person to whom this section applies commits an offence if he
discloses information received from the Commissioners for Her
Majesty’s Revenue and Customs in contravention of section 4B(3) and
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the information relates to a person whose identity—
(a)
is specified in the disclosure, or
(b)
can be deduced from it.
(3)
It is a defence for a person charged with an offence under this section
of disclosing information to prove that he reasonably believed—
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(a)
that the disclosure was lawful, or
(b)
that the information had already and lawfully been made
available to the public.
(4)
A person guilty of an offence under this section shall be liable—
(a)
on conviction on indictment, to imprisonment for a term not
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exceeding two years, to a fine or to both, or
(b)
on summary conviction, to imprisonment for a term not
exceeding 12 months, to a fine not exceeding the statutory
maximum or to both.
(5)
In relation to a conviction occurring before the commencement of
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section 282 of the Criminal Justice Act 2003 (c. 44) (short sentences) the
reference in subsection (4)(b) to 12 months shall have effect as if it were
a reference to six months.
(6)
In the application of this section to Scotland or Northern Ireland the
reference in subsection (4)(b) to 12 months shall be taken as a reference
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to six months.”
Licensing System
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Licensees
In the following provisions of the National Lottery etc. Act 1993 (c. 39) for
“body corporate” or “body” substitute “person” (and for “bodies” substitute
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“persons”)—
(a)
section 1(3)(a) and (b) (promotion of lottery),
(b)
section 5(1), (2) and (4) (and the heading) (licence to run National
Lottery),
(c)
section 6(1) and (4) (and the heading) (licence to promote lotteries),
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(d)
section 7(2)(g) (supplemental), and
(e)
section 10(1) and (2) (revocation).
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Length of licence
(1)
In section 7 of the National Lottery etc. Act 1993 (c. 39) (licensing:
supplemental) after subsection (1) insert—
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“(1A)
The period specified under subsection (1) must—
(a)
begin with the date of grant of the licence, and
(b)
not exceed 15 years.

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(1B)
A licence granted under section 5 or 6 may include—
(a)
provision enabling the period specified under subsection (1) to
be extended by the Commission;
(b)
provision enabling the period specified under subsection (1) to
be extended by agreement between the Commission and the
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licensee.”
(2)
In section 7(2) of that Act for “Such a licence” substitute “A licence granted
under section 5 or 6”.
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Fees
(1)
After section 7 of the National Lottery etc. Act 1993 (c. 39) (licences:
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supplemental) insert—
“7A
Annual fee
(1)
The holder of a licence under section 5 or 6—
(a)
shall pay a first annual fee to the Commission within such
period after the issue of the licence as may be prescribed, and
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(b)
shall pay an annual fee to the Commission before each
anniversary of the issue of the licence.
(2)
In this section—
“annual fee” means a fee of such amount as may be prescribed,
and
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“prescribed” means prescribed by regulations made by the
Secretary of State.
(3)
Subsection (1)(b) does not apply in relation to an anniversary of the
issue of a licence on or immediately before which the licence ceases, by
virtue of its terms, to have effect.
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(4)
The Commission shall pay fees received by virtue of this section into
the Consolidated Fund.”
(2)
Section 7(5) and (6) of that Act (fee on grant of licence) shall cease to have effect.
(3)
In section 10 of that Act (revocation of licence)—
(a)
after subsection (3) insert—
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“(3A)
The Commission shall revoke a licence granted under section 5
or 6 if the licensee fails to pay the annual fee in accordance with
section 7A; but the Commission may disapply this subsection if
it thinks that a failure to pay is attributable to administrative
error.”, and
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(b)
at the end of subsection (4) add “or under subsection (3A).”
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Licensing structure
(1)
The Secretary of State may by order provide for Schedule 1 (which amends the
licensing structure of the National Lottery) to have effect.
(2)
Before making an order under subsection (1) the Secretary of State must
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consult the National Lottery Commission.
(3)
An order under subsection (1)—

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(a)
may make transitional or incidental provision,
(b)
may bring all or part of Schedule 1 into force,
(c)
may make different provision for different purposes,
(d)
shall be made by statutory instrument, and
(e)
shall be subject to annulment in pursuance of a resolution of either
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House of Parliament.
Distribution of Lottery Funds
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National Lottery Distribution Fund: apportionment
(1)
Section 22 of the National Lottery etc. Act 1993 (c. 39) (apportionment of money
in Distribution Fund) shall be amended as follows.
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(2)
In subsection (3)—
(a)
at the end of paragraph (c) add “and”, and
(b)
for paragraphs (d) and (f) substitute—
“(d)
50 per cent. shall be allocated for prescribed expenditure that
is—
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(i)
charitable, or
(ii)
connected with health, or
(iii)
connected with education, or
(iv)
connected with the environment.”
(3)
After subsection (3) insert—
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“(3A)
In subsection (3)(d) “prescribed expenditure” means expenditure of a
description prescribed by order of the Secretary of State.
(3B)
A description of expenditure under subsection (3A) may, in particular,
refer to expenditure in relation to—
(a)
England,
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(b)
Wales,
(c)
Scotland,
(d)
Northern Ireland,
(e)
any of the Channel Islands, or
(f)
the Isle of Man;
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and expenditure described by virtue of this subsection is referred to in
this Act as “devolved expenditure”.
(3C)
Before making an order under subsection (3A) the Secretary of State
shall consult—
(a)
the Big Lottery Fund,
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(b)
the National Assembly for Wales,
(c)
the Scottish Ministers,
(d)
the Northern Ireland Department of Culture, Arts and Leisure,
and
(e)
such other persons (if any) as he thinks appropriate.”
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Reallocation of funds
(1)
After section 29 of the National Lottery etc. Act 1993 (variation of percentages

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for allocation of funds) insert—
“29A
Reallocation of funds
(1)
This section applies where money is—
(a)
allocated for a purpose under section 22(3), and
(b)
held for distribution by a body under section 23.
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(2)
The Secretary of State may by order provide for the money to be held
for distribution by a different body specified in the order (without
altering the purpose for which the money is allocated).
(3)
Before making an order under this section the Secretary of State shall
consult—
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(a)
each body mentioned in the order,
(b)
the National Assembly for Wales,
(c)
the Scottish Ministers, and
(d)
the Northern Ireland Department of Culture, Arts and Leisure.”
(2)
In section 24 of that Act (payments from Distribution Fund) after “section 23”
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insert “or in an order under section 29A”.
(3)
In section 60(2) of that Act (orders and regulations: affirmative resolution) after
paragraph (a) (and before the word “or” immediately after that paragraph)
insert—
“(aa)
section 29A,”.
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Investment income
In section 32 of the National Lottery etc. Act 1993 (c. 39) (National Lottery
Distribution Fund: investment)—
(a)
for subsection (3)(a) and (b) substitute “treated as if paid into the Fund
by virtue of section 5(6).”, and
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(b)
omit subsection (5).
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Distributing bodies: consultation
After section 25(2B) of the National Lottery etc. Act 1993 (application of money
by distributing bodies) insert—
“(2C)
In determining how to distribute money in accordance with subsection
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(1) a body may—
(a)
consult any person;
(b)
take account of opinions expressed to it or information
submitted to it.”
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Distributing bodies: publicity
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After section 25D of the National Lottery etc. Act 1993 (strategic plans) insert—
“25E
Distribution of funds: publicity
A body which distributes money under section 25(1) may make or
participate in arrangements for—
(a)
publishing information relating to the effect of a provision of
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this Act,

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(b)
publishing information relating to the distribution of money
under this Act or the expenditure of money distributed under
this Act, or
(c)
encouraging participation in activities relating to the National
Lottery in general.”
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Isle of Man and Channel Islands
(1)
After section 25(5) of the National Lottery etc. Act 1993 (c. 39) (application of
money by distributing bodies) add—
“(6)
A reference in this section to meeting expenditure includes a reference
to meeting expenditure which relates to—
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(a)
the Isle of Man, or
(b)
any of the Channel Islands.”
(2)
After section 25A(11) (delegation by distributing bodies) add—
“(12)
A body established under the law of the Isle of Man may be the subject
of an appointment under this section in connection with expenditure
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which relates to the Isle of Man.
(13)
A body established under the law of any of the Channel Islands may be
the subject of an appointment under this section in connection with
expenditure which relates to that Island.”
The Big Lottery Fund
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Establishment
(1)
After section 36 of the National Lottery etc. Act 1993 insert—
“The Big Lottery Fund
36A
The Fund
(1)
There shall be a body corporate known as the Big Lottery Fund.
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(2)
Schedule 4A (which makes provision in relation to the Fund) shall have
effect.”
(2)
After Schedule 4 to that Act insert the Schedule 4A set in out in Schedule 2 to
this Act.
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Functions
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(1)
In section 23 of the National Lottery etc. Act 1993 (the distributing bodies) for
subsections (4), (5) and (6) substitute—
“(4)
So much of any sum paid into the Distribution Fund as is allocated
under section 22(3)(d) shall be held by the Distribution Fund for
distribution by the Big Lottery Fund (established under section 36A).”
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