National Lottery Act 2006

National Lottery Commission

Length of licence

1

• (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.

Disclosure of information

2

After section 4A of the National Lottery etc. Act 1993 (c. 39) (consultation with Gambling Commission: inserted by the Gambling Act 2005) insert—

(4B) (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) (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

Licensees

3

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).

Length of licence

4

• (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 ”.

Fees

5

• (1) After section 7 of the National Lottery etc. Act 1993 (c. 39) (licences: supplemental) insert—

(7A) (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). ”

Licensing structure

6

• (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 Gambling 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

National Lottery Distribution Fund: apportionment

7

• (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.

Reallocation of funds

8

• (1) After section 29 of the National Lottery etc. Act 1993 (c. 39) (variation of percentages for allocation of funds) insert—

(29A) (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,

.

Investment income

9

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).

Distributing bodies: consultation

10

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.

Distributing bodies: publicity

11

After section 25D of the National Lottery etc. Act 1993 (c. 39) (strategic plans) insert—

(25E) 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.

Distributing bodies: annual reports

12

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.

Isle of Man and Channel Islands

13

• (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

Establishment

14

• (1) After section 36 of the National Lottery etc. Act 1993 (c. 39) insert—

(36A) (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.

Functions

15

• (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—