The Legislative Reform (Horserace Betting Levy) Order 2018

Article 4(3)

SCHEDULE 1 New Schedule 15A to the Gambling Act 2005

Section 338L

“SCHEDULE 15A Horserace betting levy: the designated body

Designation of a body

1.— (1) The Secretary of State must designate a body corporate to be the designated body for the purposes of Part 17A of this Act with effect from a date specified in the designation (“the effective date”).

(2) The Secretary of State may designate a body under sub-paragraph (1) only if the Secretary of State is satisfied that the body meets each of the following conditions—

(a) it is a suitable body to be the designated body;

(b) it is capable of applying the levy funds in an effective manner, on and after the effective date, in accordance with its duty under section 338O;

(c) it is capable of exercising its other functions under Part 17A on and after that date;

(d) it consents to the designation.

(3) In considering whether a body is a suitable body to be the designated body for the purposes of sub-paragraph (2)(a), the Secretary of State must have regard (among other things) to whether—

(a) it appears to represent the interests of one or more of the following groups—

(i) persons involved in horse racing;

(ii) persons involved in veterinary science;

(iii) persons involved in veterinary education;

(iv) persons involved in the breeding of horses; and

(b) it commands the confidence of the persons mentioned in sub-paragraphs (i) to (iv) of paragraph (a).

(4) The Secretary of State may consult any of the persons mentioned in sub-paragraph (3)(a)(i) to (iv) about who to designate as the designated body.

(5) If a body is designated under sub-paragraph (1), the Secretary of State must, before the effective date—

(a) give the body notice of the designation, and

(b) publish notice of the designation in such manner as the Secretary of State thinks is likely to bring it to the attention of—

(i) persons mentioned in sub-paragraph (3)(a), and

(ii) persons mentioned in section 338P(3)(a).

(6) The designation of a body under sub-paragraph (1) continues until it is terminated in accordance with this Schedule.

Review of designation

2.— (1) The Secretary of State may review the designation of a body under paragraph 1(1) if the Secretary of State has reason to suspect that—

(a) the body no longer meets the conditions for designation in paragraph 1(2), or

(b) the body has failed to discharge one or more of its duties under Part 17A.

(2) Before commencing a review, the Secretary of State must notify the designated body and inform it of the procedure to be followed in the conduct of the review.

(3) In conducting a review, the Secretary of State—

(a) must give the designated body an opportunity to make representations, and

(b) may give other persons the opportunity to make representations.

Termination of designation

3.— (1) The designation of a body under paragraph 1(1) is terminated on the date specified in the third column of the following table if the condition in the second column is met, subject to sub-paragraphs (3) to (4).

Condition reference	Condition	Date of termination
A	The designated body and the Secretary of State make an agreement specifying a date when the designation is to terminate.	The date specified in the agreement.
B	The designated body gives the Secretary of State a notice specifying a date when the designation is to terminate and that date is after the end of the period of 12 months beginning with the date on which the notice is given.	The date specified in the notice.
C	The Secretary of State gives the designated body a notice specifying a date when the designation is to terminate. The Secretary of State may give such a notice only if the Secretary of State has conducted a review under paragraph 2 and is satisfied that— (a) the body no longer meets the conditions for designation in paragraph 1(2), or (b) the body has failed to discharge one or more of its duties under Part 17A.	The date specified in the notice.
D	The designated body ceases to exist.	The date when the body ceases to exist.

(2) An agreement mentioned in Condition A, or a notice mentioned in Condition B or C, may be varied, cancelled or revoked.

(3) Where an agreement or notice is varied, references in the table in sub-paragraph (1) to the date specified in the agreement or notice are to the date specified in the agreement or notice as varied.

(4) Sub-paragraph (1) does not apply where an agreement or notice is cancelled or revoked before the date specified in the agreement or notice.

(5) If the designation of a body is terminated, the Secretary of State must publish notice of the termination in such manner as the Secretary of State thinks is likely to bring it to the attention of—

(a) persons mentioned in paragraph 1(3)(a), and

(b) persons mentioned in section 338P(3)(a).

(6) The Secretary of State may by regulations make saving or transitional provision applicable where the designation of a body is terminated.

(7) Regulations under sub-paragraph (6) may, amongst other things—

(a) provide for the body to continue to be treated as the designated body for the purposes of some or all of its functions under Part 17A, and

(b) make provision that has retrospective effect.

Property transfer schemes

4.— (1) The Secretary of State may make provision for one or more property transfer schemes in connection with the termination of the designation of a body (“the former designated body”).

(2) A “property transfer scheme” is a scheme for the transfer from the former designated body, to one or more permitted transferees, of—

(a) any property falling within sub-paragraph (3), or

(b) any rights or liabilities falling within sub-paragraph (4).

(3) Property falls within this sub-paragraph if it has been acquired by the former designated body as a result of the application of levy funds.

(4) Rights and liabilities fall within this sub-paragraph if—

(a) they arise as a result of the application of levy funds by the former designated body, and

(b) they are not rights or liabilities under or in connection with a contract of employment.

(5) “Permitted transferee” means—

(a) the designated body, or

(b) the Commission.

(6) The Secretary of State may not make a property transfer scheme under this paragraph unless satisfied that any property or rights transferred—

(a) will be used or exercised for one or more of the purposes specified in section 338O(1), or

(b) will be used or exercised in connection with the exercise of functions under Part 17A.

(7) The things that may be transferred under a property transfer scheme include—

(a) property, rights and liabilities that could not otherwise be transferred;

(b) property acquired, and rights and liabilities arising, after the making of the scheme;

(c) criminal liabilities.

(8) A property transfer scheme may transfer property, rights and liabilities which—

(a) do not exist when the scheme is made but do exist when the transfer takes effect, or

(b) become property, rights or liabilities of the former designated body after the scheme is made and before the transfer takes effect.

(9) A property transfer scheme may make supplementary, incidental, transitional or consequential provision and may, in particular—

(a) create rights, or impose liabilities, in relation to property or rights transferred;

(b) make provision about the continuing effect of things done by the former designated body in respect of anything transferred;

(c) make provision about the continuation of things (including legal proceedings) in the process of being done by, or on behalf of, or in relation to, the former designated body in respect of anything transferred;

(d) make provision for references to the former designated body in an instrument or other document in respect of anything transferred to be treated as references to the permitted transferee;

(e) dispense with a formality in relation to a transfer (whether or not it would otherwise be required by virtue of an enactment or instrument);

(f) dispense with a requirement for consent (whether arising under an enactment, an instrument or an agreement).

(10) A property transfer scheme may make provision for the shared ownership or use of property.

(11) A property transfer scheme may provide—

(a) for the scheme to be modified by agreement after it comes into effect, and

(b) for such modifications to have effect from a date when the original scheme comes into effect.”