2011
THE LEGISLATIVE ASSEMBLY
FOR THE AUSTRALIAN CAPITAL TERRITORY

(As presented)
(Minister for Gaming and Racing)
Gaming Machine (Club Governance) Amendment Bill 2011

Contents
	Page

Part 1	Preliminary
	1	Name of Act	2
	2	Commencement	2
	3	Legislation amended	2
Part 2	Gaming Machine Act 2004
	4	Grounds for refusing initial licence application by club 
Section 14 (1) (a)	3
	5	Eligibility of clubs and other corporations
New section 21 (1) (f) and (g)	3
	6	New section 21 (4)	4
	7	Conditions about inequitable benefits
Section 53 (4) (a)	4
	8	New section 53 (4) (b) (iii)	4
	9	New sections 53A and 53B	5
	10	Annual report of clubs
Section 54 (a)	5
	11	New section 54 (c)	6
	12	Other conditions of club licences
Section 55 (d)	6
	13	New section 144A	7
	14	Section 147 heading	7
	15	Section 147 (2)	7
	16	New section 147 (2) (ba)	7
	17	Section 147 (2) (f)	8
	18	New section 147A to 147D	8
	19	Section 148 heading	10
	20	New section 148A	10
	21	New section 148B	11
	22	Approval of community contributions
Section 164 (3), definition of contribution, new paragraph (b) (xvi)	11
	23	Required community contributions
Section 169 (2) (a) and (3) (b)	12
	24	Problem gambling community contributions
New section 171A (1A)	12
	25	Reviewable decisions
Schedule 1, new items 34A and 34B	12
	26	Schedule 1, new item 34C	12
	27	Dictionary, new definitions	13
Part 3	Gaming Machine Regulation 2004
	28	Section 73 heading	14

2011
THE LEGISLATIVE ASSEMBLY
FOR THE AUSTRALIAN CAPITAL TERRITORY

(As presented)
(Minister for Gaming and Racing)
Gaming Machine (Club Governance) Amendment Bill 2011

A Bill for
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 1	Preliminary
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 on 1 July 2011.
Note	The 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 2	Gaming Machine Act 2004
4	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
Note	An 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).
5	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.
6	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).
Note	A copy of the standard is accessible at www.comlaw.gov.au. 
7	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
8	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
Note	An 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).
9	New sections 53A and 53B
insert
53A	Condition 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.
53B	Condition 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).
Note	Subsection (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.
10	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; 
11	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.
12	Other conditions of club licences
Section 55 (d)
omit
13	New section 144A
in part 9, insert
144A	Definitions—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).
14	Section 147 heading
substitute
147	Associated organisations—declaration
15	Section 147 (2)
after 
declaration
insert
(an associated organisation declaration)
16	New section 147 (2) (ba)
insert
	(ba)	it does not have the power to remove a director from the club’s board; and
17	Section 147 (2) (f)
omit
approval
substitute
declaration
18	New section 147A to 147D
insert
147A	Associated 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
Note	For 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 1	The 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 2	The 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.
147B	Associated organisation—warning notice
	(1)	If the commission is satisfied 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.
147C	Associated 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 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.
147D	Club 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.
19	Section 148 heading
substitute
148	Club elections—record-keeping
20	New section 148A
insert
148A	Club 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.
21	New section 148B
insert
148B	Club 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.
22	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).
23	Required community contributions
Section 169 (2) (a) and (3) (b)
omit
7%
substitute
8%
24	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).
25	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	
26	Schedule 1, new item 34C
insert
34C	148B (2)	give direction to amend club’s constitution	club given direction	
27	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 3	Gaming Machine Regulation 2004
28	Section 73 heading
substitute
73	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	2011.
2	Notification
	Notified under the Legislation Act on	2011.
3	Republications of amended laws
	For the latest republication of amended laws, see www.legislation.act.gov.au.

© Australian Capital Territory 2011