An Act to make provision about the National
Lottery.
[11th July 2006]
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
1-
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—
“(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.
(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 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.”
(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
(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 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 ceases to be an employee
of the Commission he shall cease to be a member.”
2-
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—
“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.
(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,
(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 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.
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
(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 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—
(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 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 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
to six months.”
Licensing System
3-
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
“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),
(d)
section
7(2)(g) (supplemental), and
(e)
section
10(1) and (2) (revocation).
4-
Length
of licence
(1)
In section
7 of the National Lottery etc. Act 1993 (c. 39) (licensing:
supplemental) after subsection (1) insert—
“(1A)
The period specified under subsection
(1) must—
(a)
begin with
the date of grant of the licence, and
(b)
not exceed
15 years.
(1B)
A licence granted under section
5 or 6 may (subject to the restriction in subsection (1A)(b))
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 licensee.”
(2)
In section
7(2) of that Act for “Such a licence” substitute
“A licence granted under section 5 or 6”.
5-
Fees
(1)
After section
7 of the National Lottery etc. Act 1993 (c. 39) (licences: 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
(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
“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.
(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—
“(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
(b)
at
the end of subsection (4) add “or under subsection (3A).”
6-
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 consult
the National Lottery Commission.
(3)
An order
under subsection (1)—
(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
House of Parliament.
Distribution of Lottery
Funds
7-
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.
(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—
(i)
charitable,
or
(ii)
connected
with health, or
(iii)
connected
with education, or
(iv)
connected
with the environment.”
(3)
After subsection
(3) insert—
“(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,
(b)
Wales,
(c)
Scotland,
(d)
Northern
Ireland,
(e)
any of the
Channel Islands, or
(f)
the Isle
of Man;
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,
(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.”
8-
Reallocation
of funds
(1)
After section
29 of the National Lottery etc. Act 1993 (c. 39) (variation
of percentages 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.
(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—
(a)
each body
mentioned in the order,
(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.”
(2)
In section
24 of that Act (payments from Distribution Fund) after “section
23” 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,”.
9-
Investment
income
In section
32 of the National Lottery etc. Act 1993 (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
(b)
omit
subsection (5).
10-
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 (1) a body may—
(a)
consult
any person;
(b)
take
account of opinions expressed to it or information submitted
to it.”
11-
Distributing
bodies: publicity
After section
25D of the National Lottery etc. Act 1993 (c. 39) (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 this Act,
(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 distribution of
money under this Act.”
12-
Distributing
bodies: annual reports
In section
34 of the National Lottery etc. Act 1993 (annual reports) after
subsection (2) insert—
“(2A)
The report shall set out the body’s
policy and practice in relation to the principle that proceeds
of the National Lottery should be used to fund projects, or
aspects of projects, for which funds would be unlikely to be
made available by—
(a)
a Government
department,
(b)
the Scottish
Ministers,
(c)
a Northern
Ireland department, or
(d)
the National
Assembly for Wales.”
13-
Isle
of Man and Channel Islands
(1)
After section
25(5) of the National Lottery etc. Act 1993 (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—
(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 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
14-
Establishment
(1)
After section
36 of the National Lottery etc. Act 1993 (c. 39) insert—
“The Big Lottery
Fund
36A
The
Fund
(1)
There shall
be a body corporate known as the Big Lottery Fund.
(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.
15-
Functions
(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).”
(2)
After section
36A of that Act (inserted by section 14 above) insert—
“36B
Power
to distribute funds
(1)
The Big Lottery
Fund may make grants or loans, or make or enter into other arrangements,
for the purpose of complying with section 25(1).
(2)
A grant or
loan may be subject to conditions (which may, in particular,
include conditions as to repayment with interest).
(3)
The Secretary
of State may by order make provision limiting the amounts distributed
under subsection (1).
(4)
An order
under subsection (3) may in particular—
(a)
specify a
maximum amount that may be distributed during a specified period
for expenditure of a description prescribed under section 22(3A);
(b)
specify a
minimum amount that must be distributed during a specified period
for expenditure of a description prescribed under section 22(3A);
(c)
make provision
by reference to the aggregate of amounts distributed, to a percentage
of amounts available for distribution or otherwise;
(d)
make provision
(which may, in particular, confer a power on the Fund) for the
treatment of expenditure which satisfies more than one prescribed
description.
(5)
Before making
an order under subsection (3) the Secretary of State shall consult—
(a)
the Fund,
(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.
36C
Non-lottery
funds
(1)
The Fund
may enter into an arrangement with a person under which—
(a)
the
person pays money to the Fund, and
(b)
the
Fund distributes the money to a third party.
(2)
An arrangement
under subsection (1) may, in particular—
(a)
identify
the third party, or
(b)
otherwise
limit the Fund’s freedom of action in relation to the
distribution of the money paid under the arrangement.
(3)
The Fund
shall distribute money received under subsection (1) for meeting
expenditure that is—
(a)
charitable,
(b)
connected
with health,
(c)
connected
with education, or
(d)
connected
with the environment.
(4)
The reference
in subsection (3) to the distribution of money received under
subsection (1) is a reference to doing anything of a kind that
the Fund can do under section 36B.
(5)
A reference
in this Act to payment under section 25(1) shall include a reference
to payment under subsection (3) above.
36D
Power
to give advice
The Big Lottery Fund may give advice about—
(a)
the distribution
of money under any provision of this Act;
(b)
inviting,
making or considering applications for grants and loans under
any provision of this Act;
(c)
the use of
money paid under any provision of this Act.
