LOTTERIES ACT AMENDMENT BILL

 

Private Member’s Bill

 

Submitted in terms of Section 73 (2)

 

Read with Section 76 (1) of the Constitution

 

MEMORANDUM

 

Notice is hereby given of the introduction of a Private Members’ Bill in terms of Section 73(2) read with Section 76(1) of the Constitution. In terms of rule 234 (read with rule 230(1)), a member must submit to the Speaker a memorandum which:

 

(a)     sets out particulars of the proposed legislation

(b)     explains the objects of the proposed legislation; and

(c)     states whether the proposed legislation will have financial implications for the State and, if so, whether those implications may be a determining factor when the proposed legislation is considered.

 

The Honourable Speaker is requested to deal with this Bill in terms of Section 235 of the National Assembly Rules.

 

 

A.      PARTICULARS OF PROPOSED LEGISLATION

 

 

The following amendments to the Lotteries Act (Act 57 of 1997), as amended by act 10 of 2000 [hereinafter referred to as “the Act”] are proposed:

 

AMENDMENTS TO the ACT

1.             That section 28 under Chapter 3 be amended by:

1.1       the substitution for subsection (1) of the following subsection:

 

(1) So much of any sum paid into the fund as is allocated for expenditure referred to in section 26(3)(b), shall be held in the fund for distribution by the distributing agency constituted by the Minister—

(a) for a period of 5 years, commencing not later than one day subsequent to the expiration date of the operating term of the preceding distribution agency constituted under subsection (1); and,

(b) consisting of a minimum of six members and a maximum of ten members who—

(i) possess the required skills and expertise to distribute the allocated sum fairly and equitably amongst all persons who meet the prescribed requirements; and,

(ii) has been appointed by the Minister in consultation with the Minister responsible for welfare and population development in the national sphere of government from a list of candidates generated by public nominations called for not less than one year before the expiration date of the operating term of the incumbent distribution agency as referred to in subsection (1)(a).

 

1.2   the insertion after subsection (5) of the following subsection:

 

(6) Where the distribution agency constituted in terms of subsection (1) has ceased to function, whether as a result of the operating term having elapsed in terms of subsection (1)(a) or by Ministerial determination in terms of subsection (3) or as a result of any unforeseen causes, then the responsibility for the payment of grants already allocated by the distribution agency should be allocated to either one or distributed amongst more than one of the remaining distribution agencies appointed in terms of subsections 29(1), 30(1) and 31(2).

 

 

 

 

 

2.             That section 29 under Chapter 3 be amended by:

2.1               the substitution for subsection (1) of the following subsection:

 

(1) So much of any sum paid into the fund as is allocated for expenditure referred to in section 26(3)(c), shall be held in the fund for distribution by the distributing agency

constituted by the Minister—

(a) for a period of 5 years, commencing not later than one day subsequent to the expiration date of the operating term of the preceding distribution agency constituted under subsection (1); and,

(b) consisting of a minimum of six members and a maximum of ten members who—

(i) possess the required skills and expertise to distribute the allocated sum fairly and equitably amongst all persons who meet the prescribed requirements; and,

(ii) has been appointed by the Minister in consultation with the Minister responsible for sport and recreation in the national sphere of government from a list of candidates generated by public nominations called for not less than one year before the expiration date of the operating term of the incumbent distribution agency as referred to in subsection (1)(a).

 

     2.2     the insertion after subsection (5) of the following subsection:

 

(6) Where the distribution agency constituted in terms of subsection (1) has ceased to function, whether as a result of the operating term having elapsed in terms of subsection (1)(a) or by Ministerial determination in terms of subsection (3) or as a result of any unforeseen causes, then the responsibility for the payment of grants already allocated by the distribution agency should be allocated to either one or distributed amongst more than one of the remaining distribution agencies appointed in terms of subsections 28(1), 30(1) and 31(2).

 

3.             That section 30 under Chapter 3 be amended by:

3.1         the substitution for subsection (1) of the following subsection:

 

(1) So much of any sum paid into the fund as is allocated for expenditure referred

to in section 26(3)(d), shall be held in the fund for distribution by the distributing agency constituted by the Minister—

(a) for a period of 5 years, commencing not later than one day subsequent to the expiration date of the operating term of the preceding distribution agency constituted under subsection (1); and,

(b) consisting of a minimum of six members and a maximum of ten members who—

(i) possess the required skills and expertise to distribute the allocated sum fairly and equitably amongst all persons who meet the prescribed requirements; and,

(ii) has been appointed by the Minister in consultation with the Minister responsible for arts and culture in the national sphere of government from a list of candidates generated by public nominations called for not less than one year before the expiration date of the operating term of the incumbent distribution agency as referred to in subsection (1)(a).

 

     3.2     the insertion after subsection (5) of the following subsection:

    

 

(6) Where the distribution agency constituted in terms of subsection (1) has ceased to function, whether as a result of the operating term having elapsed in terms of subsection (1)(a) or by Ministerial determination in terms of subsection (3) or as a result of any unforeseen causes, then the responsibility for the payment of grants already allocated by the distribution agency should be allocated to either one or distributed amongst more than one of the remaining distribution agencies appointed in terms of subsections 28(1), 29(1) and 31(2).

 

 

4.             That section 31 under Chapter 3 be amended by:

4.1         the substitution for subsection (2) of the following subsection:

 

(2) The Minister may in consultation with the Minister of Finance and after

consultation with the board constitute such distribution agency or agencies as may be necessary—

(a) for a period not exceeding 5 years;

(b) consisting of a minimum of four members and a maximum of ten members who—

(i) possess the required skills and expertise to distribute the allocated sum fairly and equitably amongst all persons who meet the prescribed requirements; and,

(ii) has been appointed by the Minister from a list of candidates generated by public nominations called for not more than one year before the operating term of the proposed distribution agency, as determined in accordance with subsection (1)(a), is set to commence.

                       

4.2     the insertion after subsection (6) of the following subsection:

 

(7) Where the distribution agency constituted in terms of subsection (1) has ceased to function, whether as a result of the operating term having elapsed in terms of subsection (1)(a) or by Ministerial determination in terms of subsection (3) or as a result of any unforeseen causes, then the responsibility for the payment of grants already allocated by the distribution agency should by allocated to either one or distributed amongst more than one of the remaining distribution agencies appointed in terms of subsections 28(1), 29(1) and 30(1).

 

 

5.  That section 32 under Chapter 3 be amended by:

5.1         the insertion in subsection (4), after subparagraph (b)(ii), of the following subparagraph:

 

(iii) the provisions contained in subsection 5

 

5.2         the insertion in subsection (4), after subparagraph (b)(ii), of the following subsection:

 

(5) Grants allocated by distribution agencies constituted—

(a) in terms of subsections 28(1), 29(1) and 30(1)—

(i) if approved, shall be paid over to the juristic person to whom the grant was allocated within a period of time not exceeding 60 days from when any such juristic person was notified of the allocation by the board; and,

(ii) if not approved, shall be finalised by notifying the juristic person to whom the grant was allocated within a period of time not exceeding 60 days from when any such juristic person was notified of the allocation by the board.

(b) in terms of subsections 31(2)—

(i) if approved, shall be paid over to the juristic person to whom the grant was allocated within a reasonable period of time as determined by the Minister, taking into account the nature and the purpose of the allocation; and,

(ii)  if not approved, shall be finalised by notifying the juristic person to whom the grant was allocated within a reasonable period of time as determined by the Minister, taking into account the nature and the purpose of the allocation.

 

 

 

B.      THE OBJECTS OF THE PROPOSED LEGISLATION

The proposed legislation is intended to address the shortcomings of the Act by promoting the following:

 

 

1.             Continuity of the functions of the distribution agencies:

The bill seeks to promote the continuity of the functions of the distribution agencies constituted under sections 28, 29 and 31 by introducing the following clear statutory references:

       a reference to an operating term of five years for the agencies in respect of each of these sections;

       a reference to the day on which the distribution agencies should appointed, namely one day subsequent to the expiration of the operating terms of the preceding distribution agencies; and,

       a reference to the minimum period of time that should be allowed for the process of constituting the distribution agencies by stating that calls for the public nominations of distribution agency appointees should be issued not less than one year prior to the expiration date of the operating terms of these distribution agencies

 

 

2.             Improved flexibility and capacity of distribution agencies:

The bill seeks to promote the improved flexibility of the distribution agencies as follows:

   for the distribution agencies constituted under sections 28, 29 and 30 by providing for six to ten members; and,

   for the distribution agencies constituted under sections 31 by providing for four to ten members.

 

 

 

 

3.             Greater certainty in the processing periods of grant allocations:

The bill seeks to promote the greater certainty in the processing periods for grants allocated by:

   with respect to the distribution agencies constituted under sections 28, 29 and 30, imposing a two month limit on the period from when a beneficiary (“juristic person”) has been notified of an allocation having been made in its favour to when the funds are paid over, should the allocation have been approved;

   with respect to the distribution agencies constituted under section 31, providing for the period from when a beneficiary (“juristic person”) has been notified of an allocation having been made in its favour to when the funds are paid over to not exceed a predetermined reasonable period; and,

   by providing that the Minister should take due account of the provisions with respect to time limits on the processing of grant allocations when intervening in the making of such allocations.

 

 

 

C.      FINANCIAL IMPLICATIONS

 

The Legislation will have no financial implications above what is required by the Act.

 

 

Name of Member: Les Labuschagne MP

 

Signature:……………………………………………………………..

 

Date: ………………………………………………………………….