The Racing and Gaming Act 1952 is amended as follows:

(a) by inserting the following definition after the definition of existing club in section 3 :

fee unit means a fee unit within the meaning of the Fee Units Act 1997 ;

(b) by inserting the following definition after the definition of horse-racing club in section 3 :

licensed operator means a person or body authorised to conduct operations on behalf of TOTE Tasmania;

(c) by omitting the definition of prescribed employee of TAB from section 3 and substituting the following definition:

prescribed employee of TOTE Tasmania means –

(a) an employee of TOTE Tasmania; or

(b) the chief executive officer of TOTE Tasmania; or

(c) an agent or licensed operator of TOTE Tasmania;

(d) by inserting the following definition after the definition of rules in section 3 :

shareholders means –

(a) the Minister; and

(b) the Treasurer or, if the Treasurer is also the Minister, one other Minister of the Crown determined by the Treasurer;

(e) by omitting the definition of TAB from section 3 ;

(f) by inserting the following definition after the definition of totalizator licence in section 3 :

TOTE Tasmania means the company of that name referred to in the TOTE Tasmania Act 2000 ;

(g) by omitting Division I from Part IV ;

(h) by omitting from the heading to Division II of Part IV " the Totalizator Agency Board " and substituting " TOTE Tasmania " ;

(i) by omitting from section 57E(3) "Notwithstanding section 9 of the Government Business Enterprises Act 1995 , TAB" and substituting "TOTE Tasmania" ;

(j) by omitting from section 57EA(3)(a) "TAB's" and substituting "TOTE Tasmania's" ;

(k) by omitting from section 57EA(3)(b)(i) "TAB's" and substituting "TOTE Tasmania's" ;

(l) by omitting from section 57P(1) "transferred to TAB's revenue account" and substituting "included in the amount set aside under section 57QD " ;

(m) by omitting section 57Q and substituting the following sections:

57Q.     TOTE to retain commission as revenue

TOTE Tasmania is to retain as revenue any amount deducted as commission under section 57M(1A) .

57QA.     Payments to Consolidated Fund

(1)  In respect of the financial year starting on 1 July 2003 and in each succeeding financial year, TOTE Tasmania must pay to the Consolidated Fund an amount equivalent to 1 960 784 fee units.

(2)  The amount is to be paid in equal instalments quarterly in arrears with the final payment to be paid before 30 June in the relevant financial year.

57QB.     Incentive payments to racing industry

(1)  In each financial year, TOTE Tasmania is to set aside an amount, not exceeding 25% of its net earnings for that financial year, for the benefit of the racing industry.

(2)  For the purposes of subsection (1) , the net earnings are taken to be the earnings in respect of each financial year after deducting all expenses other than interest payments, income tax equivalents, depreciation and amortisation.

(3)  The amount payable under subsection (1) and the times of payment are to be as decided by TOTE Tasmania after consultation with the shareholders.

57QC.     Product fee

(1)  TOTE Tasmania is to pay a product fee to the Tasmanian racing industry in each financial year for the conduct of race meetings (including prize money), administration, maintenance and improvement of the horse-racing and greyhound racing industries.

(2)  The product fee is to be equivalent to 10 092 850 fee units.

(3)  The amount of the product fee may be varied as agreed between TOTE Tasmania and the shareholders.

(4)  The product fee is to be distributed to the individual racing clubs in accordance with an agreement made between TOTE Tasmania and the individual racing clubs, specifying the conditions on which the distribution is to be made.

(5)  The agreement referred to in subsection (4) may include, but is not limited to, provisions dealing with the following:

(a) access to facilities;

(b) access to visual images or audio broadcasts of races run by the racing club.

57QD.     TOTE Tasmania to set aside amount

(1)  TOTE Tasmania is to set aside an amount comprising the following:

(a) any unclaimed dividend or refund transferred under section 57P ;

(b) any incentive payment made under section 57QB .

(2)  The amount set aside under subsection (1)  –

(a) is to be used for the benefit of the racing industry in respect of any of the matters set out in section 57E(5) ; and

(b) may be used in such amounts and at such times as the Board determines.

(n) by omitting section 57R ;

(o) by omitting sections 57S and 57T ;

(p) by omitting from section 57V(2) "TAB's" and substituting "TOTE Tasmania's" ;

(q) by omitting paragraph (c) from section 57Y and substituting the following paragraph:

(c) section 57Q (as to disbursement of totalizator commission) –

(r) by omitting sections 57YA , 57Z , 57ZA and 57ZB .