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GAMBLING AND OTHER LEGISLATION AMENDMENT ACT 2009 No. 41 - SECT 41

41 Insertion of new pt 3B

After section 109I--

insert--

'(1) The maximum number of entitlements under this Act is the number prescribed under a regulation.

'(2) For this Act, entitlements of the number prescribed under subsection (1) are declared to exist.

'(1) An entitlement for a category 2 licensed premises is transferable.

'(2) However, a transfer of an entitlement for category 2 licensed premises does not have any effect unless the commission approves the transfer under this part.

'In this division--

category 2 licensee, for transferor licensed premises, includes a category 2 licensee--

(a) who has surrendered the licensee's gaming machine licence; and
(b) whose entitlements must, under section 95(2D), be transferred on a permanent basis within 1 year after the surrender.

licensed premises, of a category 2 licensee who has surrendered the licensee's gaming machine licence, means the premises that were the licensed premises under the licence before its surrender.

transferee licensed premises see section 109M(1).

transferee licensee see section 109M(1).

transferor licensed premises see section 109M(1).

transferor licensee see section 109M(1).

'(1) A category 2 licensee (the transferor licensee) for licensed premises (the transferor licensed premises) may apply to the chief executive for approval of a transfer of entitlements for the licensed premises to the licensee (the transferee licensee) of other category 2 licensed premises (the transferee licensed premises) on a permanent basis.

'(2) The reference to other category 2 licensed premises in subsection (1) includes a reference to other premises to which the transferor licensee's licence relates.

'(3) The application must be--

(a) in the approved form; and
(b) accompanied by--
(i) the details of the transfer prescribed under a regulation; and
(ii) the fee, if any, prescribed under a regulation.

'(4) The chief executive must make a recommendation to the commission about whether to grant or refuse to grant the application.

'(5) The commission must grant the application if the requirements mentioned in sections 109N to 109P are satisfied.

'(6) If the commission grants the application, the chief executive must give the transferor licensee and the transferee licensee written notice of the decision.

'(7) The commission must refuse to grant the application if the requirements mentioned in sections 109N to 109P are not satisfied.

'(8) If the commission refuses to grant the application, the chief executive must give the transferor licensee a written notice stating the decision and the reasons for the decision.

'(1) For section 109M(5), requirements about consideration for the transfer are stated in subsections (2) and (3).

'(2) Any consideration for the transfer must be--

(a) monetary; and
(b) not--
(i) less than the amount, if any, prescribed under a regulation; or
(ii) more than the amount, if any, prescribed under a regulation.

'(3) Also, the consideration for the transfer must not give the transferor licensee a direct or indirect interest in, or percentage or share of either of the following on the transferee licensee's licensed premises--

(a) the amount bet for the purpose of gaming;
(b) moneys, revenues, profits or earnings from the conduct of gaming.

'(1) For section 109M(5), requirements about the transferor licensed premises are stated in subsections (2) to (6).

'(2) Subsection (3) applies if the chief executive has granted an application made by the transferor licensee under section 86 for a decrease in the approved number of gaming machines for the transferor licensed premises.

'(3) The number of entitlements the subject of the transfer must not be more than the difference between the endorsed number of entitlements for the transferor licensed premises and the approved number of gaming machines for the transferor licensed premises after the decrease.

'(4) If the transferor licensee has surrendered the licensee's licence under section 95(1), the number of entitlements the subject of the transfer must not be more than the endorsed number of entitlements for the transferor licensed premises.

'(5) Subsection (6) applies if the transferor licensee has given the chief executive notice under section 91A(2) that the conduct of gaming has ceased at the transferor licensed premises.

'(6) The number of entitlements the subject of the transfer must not be more than the endorsed number of entitlements for the transferor licensed premises at which gaming has ceased.

'(1) For section 109M(5), requirements about the transferee licensed premises are stated in subsections (2) to (4).

'(2) The approved number of gaming machines for the transferee licensed premises must be more than the sum of--

(a) the endorsed number of entitlements for the licensed premises; and
(b) the number of entitlements for other licensed premises that have been transferred to the transferee licensee on a temporary basis under division 3.

'(3) The number of entitlements the subject of the transfer must not be more than the difference between the approved number of gaming machines and the sum of the entitlements mentioned in subsection (2).

'(4) The transferee licensed premises must be located in the same entitlement region in which the transferor licensed premises are located.

'(1) This section applies if--

(a) the commission has, under section 109M, approved the transfer, by the transferor licensee, of entitlements for the transferor licensed premises to the transferee licensee on a permanent basis under this division; and
(b) the transfer has not yet taken place; and
(c) the licensees propose to vary the consideration for the transfer.

'(2) The transferor licensee must apply to the chief executive for approval of the variation.

'(3) The application must be--

(a) in writing; and
(b) accompanied by the fee, if any, prescribed under a regulation.

'(4) The chief executive must make a recommendation to the commission about whether to grant or refuse to grant the application.

'(5) The commission must grant the application if the requirement mentioned in section 109N will still be satisfied.

'(6) If the commission grants the application, the chief executive must give the transferor licensee a written notice of the decision.

'(7) The commission must refuse to grant the application if the requirement mentioned in section 109N will not be satisfied.

'(8) If the commission refuses to grant the application, the chief executive must give the transferor licensee a written notice stating the decision and the reasons for the decision.

'(1) This section applies if entitlements for the transferor licensed premises are transferred by the transferor licensee to the transferee licensee on a permanent basis under this division.

'(2) Each of the licensees must, within 14 days after the day of the transfer, give to the chief executive--

(a) the licensee's gaming machine licence; and
(b) the fee prescribed under a regulation.

Maximum penalty--40 penalty units.

'(3) If the chief executive receives a gaming machine licence for a licensee under subsection (2), the chief executive must as soon as practicable--

(a) replace the licensee's licence; and
(b) give the replacement licence to the licensee.

'(4) The replacement licence must include the following--

(a) the information mentioned in section 68(2)(e);
(b) the number of entitlements for the licensed premises that have been transferred to the licensee of other licensed premises on a temporary basis under division 3;
(c) the number of entitlements for other licensed premises that have been transferred to the licensee on a temporary basis under division 3;
(d) if the licensee received a notice under section 88A(1) or (2) relating to a decision approving a decrease in the approved number of gaming machines for the licensee's licensed premises--the number of entitlements for the licensed premises that must, under section 87(9), be transferred on a permanent basis under this division.

'(5) This section does not apply to a transferor licensee's licence surrendered under section 95(1).

'In this division--

transferee licensed premises see section 109T(1).

transferee licensee see section 109T(1).

transferor licensed premises see section 109T(1).

transferor licensee see section 109T(1).

'(1) A category 2 licensee (the transferor licensee) for licensed premises (the transferor licensed premises) may apply to the chief executive for approval of a transfer of entitlements for the licensed premises for the use of the entitlements by the licensee (the transferee licensee) at other category 2 licensed premises (the transferee licensed premises) on a temporary basis.

'(2) The reference to other category 2 licensed premises in subsection (1) includes a reference to other premises to which the transferor licensee's licence relates.

'(3) The application must be--

(a) in the approved form; and
(b) signed by both the transferor licensee and the transferee licensee; and
(c) accompanied by--
(i) the details of the transfer prescribed under a regulation; and
(ii) the fee, if any, prescribed under a regulation.

'(4) The chief executive must ensure the approved form includes information about the effect on transferred entitlements of--

(a) the surrender, suspension or cancellation of a transferor licensee's licence or a transferee licensee's licence; or
(b) the licensee of licensed premises to which a transfer relates ceasing to conduct gaming at the premises.

'(5) The chief executive must make a recommendation to the commission about whether to grant or refuse to grant the application.

'(6) The commission must grant the application if the requirements mentioned in sections 109U to 109W are satisfied.

'(7) If the commission grants the application, the chief executive must give the transferor licensee and the transferee licensee written notice of the decision.

'(8) The commission must refuse to grant the application if the requirements mentioned in sections 109U to 109W are not satisfied.

'(9) If the commission refuses to grant the application, the chief executive must give the transferor licensee a written notice stating the decision and the reasons for the decision.

'(1) For section 109T(6), requirements about the period of the transfer and the consideration for the transfer are stated in subsections (2) to (4).

'(2) The period of the transfer must not be less than 1 year or more than 8 years.

'(3) Any consideration for the transfer must be--

(a) monetary; and
(b) not--
(i) less than the amount, if any, prescribed under a regulation; or
(ii) more than the amount, if any, prescribed under a regulation.

'(4) Also, the consideration for the transfer must not give the transferor licensee a direct or indirect interest in, or percentage or share of either of the following on the transferee licensee's licensed premises--

(a) the amount bet for the purpose of gaming;
(b) moneys, revenues, profits or earnings from the conduct of gaming.

'(1) For section 109T(6), requirements about the transferor licensed premises are stated in subsections (2) to (6).

'(2) The approved number of gaming machines for all licensed premises to which the transferor licensee's licence relates must be less than 30.

'(3) The transferor licensee must not, during the 3 years ending on the day of the proposed transfer of the entitlements the subject of the transfer, have been notified--

(a) under section 58 of the grant of the licence for the transferor licensed premises; or
(b) under section 63 of the approval of additional premises as premises to which the transferor licensee's licence relates; or
(c) under section 83 of an approval to increase the approved number of gaming machines for the transferor licensed premises.

'(4) None of the entitlements for the transferor licensed premises must be--

(a) currently transferred under this division for use on a temporary basis at other category 2 licensed premises; or
(b) required under section 87(9) to be transferred on a permanent basis under division 2.

'(5) None of the entitlements for other category 2 licensed premises must be currently transferred under this division for use on a temporary basis at the transferor licensed premises.

'(6) Subsection (3) does not apply if--

(a) at the time the transferor licensee was notified as mentioned in subsection (3), entitlements for the transferor licensed premises, equal in number to the approved number of gaming machines for the premises, were transferred under section 78(5) or 78A(7) to the transferor licensee; and
(b) at the time the application was made under section 109T, the transferor licensee had installed the number of gaming machines fixed under section 59 for the transferor licensed premises.

'(1) For section 109T(6), requirements about the transferee licensed premises are stated in subsections (2) to (5).

'(2) The approved number of gaming machines for the transferee licensed premises must be more than the sum of--

(a) the endorsed number of entitlements for the licensed premises; and
(b) the number of entitlements for other licensed premises that have been transferred to the transferee licensee on a temporary basis under this division.

'(3) The number of entitlements the subject of the transfer must not be more than the difference between the approved number of gaming machines and the sum of the entitlements mentioned in subsection (2).

'(4) The transferee licensed premises must be located in the same entitlement region in which the transferor licensed premises are located.

'(5) None of the entitlements for the transferee licensed premises must be--

(a) currently transferred under this division for use on a temporary basis at other category 2 licensed premises; or
(b) required under section 87(9) to be transferred on a permanent basis under division 2.

'(1) This section applies if--

(a) the commission has, under section 109T, approved the transfer, by the transferor licensee, of entitlements for the transferor licensed premises to the transferee licensee on a temporary basis under this division; and
(b) the licensees propose to vary the period of the transfer or the consideration for the transfer.

'(2) The transferor licensee must apply to the chief executive for approval of the variation.

'(3) The application must be--

(a) in writing; and
(b) accompanied by the fee, if any, prescribed under a regulation.

'(4) The chief executive must make a recommendation to the commission about whether to grant or refuse to grant the application.

'(5) The commission must grant the application if the requirements mentioned in section 109U will still be satisfied.

'(6) If the commission grants the application, the chief executive must give the transferor licensee written notice of the decision.

'(7) The commission must refuse to grant the application if the requirements mentioned in section 109U will not be satisfied.

'(8) If the commission refuses to grant the application, the chief executive must give the transferor licensee a written notice stating the decision and the reasons for the decision.

'(1) This section applies if entitlements for the transferor licensed premises are transferred by the transferor licensee to the transferee licensee on a temporary basis under this division.

'(2) Each of the licensees must, within 14 days after the day of the transfer, give to the chief executive--

(a) the licensee's gaming machine licence; and
(b) the fee prescribed under a regulation.

Maximum penalty--40 penalty units.

'(3) If the chief executive receives a gaming machine licence for a licensee under subsection (2), the chief executive must as soon as practicable--

(a) replace the licensee's licence; and
(b) give the replacement licence to the licensee.

'(4) The replacement licence must include--

(a) the information mentioned in section 68(2)(e); and
(b) the number of entitlements for the transferor licensed premises that have been transferred by the transferor licensee to the transferee licensee on a temporary basis under this division.

'(1) This section applies if entitlements for the transferor licensed premises are transferred by the transferor licensee to the transferee licensee on a temporary basis under this division.

'(2) The transferor licensee must, during the period of the transfer, keep a register at the transferor licensed premises stating the following--

(a) the number of entitlements the subject of the transfer;
(b) the name, and licence number, of the transferee licensee;
(c) the address of the transferee licensed premises;
(d) the period of the transfer.
Maximum penalty--20 penalty units.

'(3) The transferor licensee must keep the register mentioned in subsection (2) available for inspection by an inspector.

Maximum penalty--20 penalty units.

'(4) The transferee licensee must, during the period of the transfer, keep a register at the transferee licensed premises stating the following--

(a) the number of entitlements the subject of the transfer;
(b) the name, and licence number, of the transferor licensee;
(c) the address of the transferor licensed premises;
(d) the period of the transfer.
Maximum penalty--20 penalty units.

'(5) The transferee licensee must keep the register mentioned in subsection (4) available for inspection by an inspector.

Maximum penalty--20 penalty units.

'(1) An entitlement of a licensee becomes an entitlement of the State and stops being an entitlement of the licensee by operation of this subsection if the licensee's gaming machine licence--

(a) expires under section 72; or
(b) is not renewed under section 76; or
(c) lapses under section 80A(1); or
(d) is cancelled under section 96 because the licensee's liquor licence is transferred, cancelled or surrendered; or
(e) is cancelled under section 97(16)(d) or (17)(a).

'(2) Subsection (3) applies if, at any time, the endorsed number of entitlements for licensed premises is more than the approved number of gaming machines for the licensed premises because of--

(a) the operation of section 80A(2) or 85AA(2) or (3); or
(b) the approval of a decrease proposal that is a request or report under section 87(1); or
(c) other circumstances prescribed under a regulation.

'(3) The entitlements that are more in number than the approved number of gaming machines for the licensed premises stop being entitlements of a licensee and become entitlements of the State by operation of this subsection.

'(4) A temporary transfer ends if the entitlement that is the subject of the temporary transfer becomes an entitlement of the State under subsection (1) or (3).

'No compensation is payable to a licensee or other person because an entitlement of the licensee or person becomes an entitlement of the State by operation of this Act.

'An entitlement of the State may be sold only by an entity (an entitlement selling entity), and in the way, prescribed under a regulation.

'(1) A person must not purchase an entitlement at an authorised entitlements sale unless--

(a) the person is a category 2 licensee; and
(b) the person has, for the category 2 licensed premises for which the entitlement is purchased, an approved number of gaming machines for the licensed premises that is more than the sum of--
(i) the endorsed number of entitlements for the licensed premises; and
(ii) the number of entitlements for other licensed premises that have been transferred to the licensee on a temporary basis under division 3; and
(c) the licensed premises for which the entitlement is purchased are located in the entitlement region for which the authorised entitlements sale is conducted.

Maximum penalty--200 penalty units.

'(2) Subsection (1)(c) does not apply if the authorised entitlements sale is conducted for the whole of Queensland.

'(3) A person must not, for category 2 licensed premises, purchase at an authorised entitlements sale more than the number of entitlements equal to the difference between--

(a) the approved number of gaming machines for the licensed premises; and
(b) the sum of--
(i) the endorsed number of entitlements for the licensed premises; and
(ii) the number of entitlements for other licensed premises that have been transferred to the licensee on a temporary basis under division 3.

Maximum penalty--200 penalty units.

'If an entitlement of the State is sold at an authorised entitlements sale, the entitlement selling entity must pay the amount received for the entitlement into the community investment fund established under section 314.

'An encumbrance to the extent it is over an entitlement is of no effect.

'(1) This section applies if there is a change in the endorsed number of entitlements for licensed premises other than because of the transfer of an entitlement for the premises on a permanent basis under division 2.

'(2) The licensee must, within 14 days after the day of the change, give to the chief executive--

(a) the licensee's gaming machine licence; and
(b) the fee prescribed under a regulation.

Maximum penalty--40 penalty units.

'(3) If the chief executive receives a gaming machine licence for a licensee under subsection (2), the chief executive must as soon as practicable--

(a) replace the licensee's licence; and
(b) give the replacement licence to the licensee.

'(4) The replacement licence must include the following--

(a) the information mentioned in section 68(2)(e);
(b) the number of entitlements for the licensed premises that have been transferred to the licensee of other licensed premises on a temporary basis under division 3;
(c) the number of entitlements for other licensed premises that have been transferred to the licensee on a temporary basis under division 3;
(d) if the licensee received a notice under section 88A(1) or (2) relating to a decision approving a decrease in the approved number of gaming machines for the licensee's licensed premises--the number of entitlements for the licensed premises that must, under section 87(9), be transferred on a permanent basis under division 2.

'(1) This section applies if there is--

(a) a decrease in the number of entitlements for licensed premises transferred by a transferor licensee to a transferee licensee on a temporary basis under division 3; or
(b) an end to the transfer of entitlements by a transferor licensee to a transferee licensee on a temporary basis under division 3.

'(2) Each of the licensees must, within 14 days after the day of the decrease mentioned in subsection (1)(a) or ending mentioned in subsection (1)(b), give to the chief executive--

(a) the licensee's gaming machine licence; and
(b) the fee prescribed under a regulation.

Maximum penalty--40 penalty units.

'(3) Subsection (2) does not apply to a licensee whose gaming machine licence--

(a) expires under section 72; or
(b) is not renewed under section 76; or
(c) lapses under section 80A(1); or
(d) is cancelled under section 96 because the licensee's liquor licence is cancelled or surrendered; or
(e) is cancelled under section 97(16)(d) or (17)(a).

'(4) If the chief executive receives a gaming machine licence for a licensee under subsection (2), the chief executive must as soon as practicable--

(a) replace the licensee's licence; and
(b) give the replacement licence to the licensee.

'(5) The replacement licence must include the following--

(a) the information mentioned in section 68(2)(e);
(b) the number of entitlements for the licensed premises that have been transferred to the licensee of other licensed premises on a temporary basis under division 3;
(c) the number of entitlements for other licensed premises that have been transferred to the licensee on a temporary basis under division 3;
(d) if the licensee received a notice under section 88A(1) or (2) relating to a decision approving a decrease in the approved number of gaming machines for the licensee's licensed premises--the number of entitlements for the licensed premises that must, under section 87(9), be transferred on a permanent basis under division 2.

'(1) Subsection (2) applies if--

(a) entitlements have been transferred to a licensee on a temporary basis under division 3; and
(b) a controller is appointed in relation to the property of the licensee.

'(2) The temporary transfer of the entitlements ends on the day the controller is appointed.

'(3) In this section--

controller see the Corporations Act, section 9.

'The chief executive must, within 2 years after the commencement of this section, start a review of the operation of the provisions of this Act relating to entitlements.'.



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