s-13.1 - Act respecting the Société des loteries du Québec

Updated to 14 December 2006

This document has official status.

chapter S-13.1

Act respecting the Société des loteries du Québec

1990, c. 46, s. 42.

DIVISION I DEFINITIONS

1. In this Act, unless the context indicates otherwise,

(a)  (subparagraph repealed);

(b)  “company” means the Société des loteries du Québec constituted by section 2.

In this Act, the expression “lottery scheme” includes a game of chance and a game of mixed chance and skill.

1978, c. 38, s. 1; 1990, c. 46, s. 43; 1999, c. 40, s. 285.

DIVISION II INCORPORATION AND ORGANIZATION

2. A joint-stock company is constituted under the name of “Société des loteries du Québec”.

The company may also be designated under the name of “Loto-Québec”.

1978, c. 38, s. 2; 1990, c. 46, s. 44; 1999, c. 40, s. 285.

3. The company has its head office at the place determined by the Government; a notice of the location or of any change of location of the head office is published in the Gazette officielle du Québec.

The company may hold its sittings at any place in Québec.

1978, c. 38, s. 3.

4. The company has the rights and obligations of a mandatary of the State.

The property of the company forms part of the domain of the State, but the performance of the obligations of the company may be levied against its property.

The company binds none but itself when it acts in its own name.

1978, c. 38, s. 4; 1999, c. 40, s. 285.

5. The authorized capital of the company is $170,000. It is divided into 1,700 shares of a par value of $100 each.

1978, c. 38, s. 5.

6. The shares of the company form part of the domain of the State and are allotted to the Minister of Finance; they are issued to him in consideration of the remittance of the assets received by the company under section 32.

1978, c. 38, s. 6; 1999, c. 40, s. 285.

6.1. The company is administered by a board of directors consisting of from 9 to 15 members including the chair and the president and chief executive officer.

2006, c. 59, s. 118.

6.2. The Government appoints the members of the board of directors, other than the chair of the board and the president and chief executive officer, based on the expertise and experience profiles established by the board. Board members are appointed for a term of up to four years.

2006, c. 59, s. 118.

7. The members of the board of directors are the directors of the company within the meaning of the Companies Act (chapter C-38).

No person may be a member of the board of directors unless he is domiciled in Québec, but he is not required to be a shareholder.

1978, c. 38, s. 7; 2006, c. 59, s. 119.

8. At the expiry of their term, the members of the board of directors remain in office until they are re-appointed or replaced.

1978, c. 38, s. 8; 1999, c. 40, s. 285; 2006, c. 59, s. 120.

8.1. A vacancy on the board of directors is filled for the remainder of the unexpired term in accordance with the rules of appointment to the board.

Non-attendance at a number of board meetings determined by by-law of the company constitutes a vacancy in the cases and circumstances specified by by-law.

2006, c. 59, s. 121.

9. The Government appoints the chair of the board of directors for a term of up to five years.

1978, c. 38, s. 9; 2006, c. 59, s. 122.

9.1. On the recommendation of the board of directors, the Government appoints the president and chief executive officer based on the expertise and experience profile established by the company.

The president and chief executive officer is appointed for a term of up to five years.

The board determines the remuneration and other conditions of employment of the president and chief executive officer in keeping with parameters set by the Government.

2006, c. 59, s. 122.

9.2. If the board of directors does not recommend a candidate for the position of president and chief executive officer in accordance with section 9.1 within a reasonable time, the Government may appoint the president and chief executive officer after notifying the board members.

2006, c. 59, s. 122.

9.3. If the president and chief executive officer is absent or unable to act, the board of directors may designate a member of the company’s personnel to exercise the functions of that position.

2006, c. 59, s. 122.

10. (Repealed).

1978, c. 38, s. 10; 2006, c. 59, s. 123.

11. The Government fixes the salary or, where that is the case, the additional salary, allowances or fees of the members of the board of directors.

1978, c. 38, s. 11.

12. The board of directors of the company may make internal management by-laws for the conduct of its affairs, which by-laws come into force upon approval of the Government.

1978, c. 38, s. 12.

13. The board of directors of the company determines by by-law the general standards and conditions relating to the nature and holding of the lottery schemes it conducts and administers.

The by-law shall be submitted to the Government for approval; if it relates to State casino lottery schemes or video lotteries, the Régie des alcools, des courses et des jeux must give notice of it. Such notice must be published in the Gazette officielle du Québec at the time of the publication provided for in section 8 of the Regulations Act (chapter R-18.1) or, in the absence of such publication, at the time of the publication provided for in section 15 of the said Act.

1978, c. 38, s. 13; 1993, c. 39, s. 88.

13.1. The board of directors of the company shall establish, on the basis of the objects previously determined by the Government, policies concerning the management of businesses operated by the company or by one of its subsidiaries and which are incidental to the operation of a State casino. Such policies shall be submitted to the Government for approval.

1993, c. 39, s. 89.

14. The minutes of the sittings of the board of directors approval by it and certified true by the chair of the board, the president and chief executive officer, or by any other person authorized to do so by the internal management by-laws of the company, are authentic. The same rule applies to documents or copies emanating from the company or forming part of its records when they are so certified.

1978, c. 38, s. 14; 2006, c. 59, s. 124.

15. The secretary and the other employees of the company are appointed according to the standards and scales established by by-law of the company.

Subject to the provisions of a collective agreement, the company shall determine, by by-law, the standards and scales of remuneration of the members of its personnel in accordance with the conditions defined by the Government.

If they are assigned to State casino activities, they must also meet the conditions applicable to them under subparagraph a of the first paragraph of section 20.2 of the Act respecting lotteries, publicity contests and amusement machines (chapter L-6).

1978, c. 38, s. 15; 1993, c. 39, s. 90; 2000, c. 8, s. 200.

DIVISION III FUNCTIONS AND POWERS

16. The functions of the company are to conduct and administer lottery schemes and to operate businesses which are incidental to the operation of a State casino.

The company may also offer, for consideration, consulting and implementation services in matters within its competence.

1978, c. 38, s. 16; 1985, c. 30, s. 91; 1987, c. 103, s. 131; 1990, c. 46, s. 45; 1993, c. 39, s. 91.

17. The company may do anything necessary for the attainment of its objects but shall not, without the prior authorization of the Government,

(a)  make with a government or an agency responsible to a government, any agreement deemed necessary for the attainment of its objects;

(b)  acquire, hold or alienate interests in any undertaking;

(c)  contract loans except to fill its temporary needs for liquidity;

(d)  make a contract binding it for more than five years;

(e)  acquire or dispose of equipment or immovables for an amount exceeding that determined by the Government.

No subsidiary in which the company holds more than 50% of the shares or stocks may, without the prior authorization of the Government, perform any of the acts described in subparagraphs a to e of the first paragraph.

This section does not apply to transactions effected between the company and its subsidiaries or between subsidiaries or to transactions whose main object is the leasing or administration of immovables owned by the company or by one of its subsidiaries.

1978, c. 38, s. 17; 1993, c. 39, s. 92.

18. The company must deposit its available funds in a bank or an authorized foreign bank listed in Schedule I, II or III to the Bank Act (Statutes of Canada, 1991, chapter 46) or in an institution registered with the Autorité des marchés financiers pursuant to the Deposit Insurance Act (chapter A‐26). It may, nevertheless, invest funds for a term of less than one year by buying securities issued or guaranteed by the Gouvernement du Québec, or the Government of Canada or of a Canadian province.

1978, c. 38, s. 18; 2002, c. 45, s. 559; 2002, c. 70, s. 186; 2002, c. 45, s. 559; 2004, c. 37, s. 90.

DIVISION IV ADMINISTRATION

19. The financial year of the company ends on 31 March each year.

1978, c. 38, s. 19.

20. Before the beginning of each fiscal year, the company must prepare and submit to the approval of the Minister of Finance, on the date and in the form determined by him, a budget of its capital expenditures and an operating budget.

1978, c. 38, s. 20.

21. The company must furnish to the Minister of Finance a quarterly statement of its revenues and expenditures and a statement of their correlation with the budgetary forecasts of the company.

1978, c. 38, s. 21.

21.1. The company must submit any information on the company and its subsidiaries requested by the Minister of Finance.

2006, c. 59, s. 125.

22. The company must in addition furnish to the Minister of Finance, upon request and within the time fixed by him, a report on any matter relating to its activities.

1978, c. 38, s. 22; 1999, c. 40, s. 285.

22.1. The company shall pay into the assistance fund for independent community action established under Division III.1 of the Act respecting the Ministère du Conseil exécutif (chapter M-30), out of the amount by which its consolidated revenue exceeds its consolidated expenditure, an amount equal to 5% of the net profit for the preceding fiscal year from the operation of the State casinos and the management of contributing businesses. The payments shall be made on the dates and to the extent determined by the Government.

The Government may, for the purposes of independent community action and international humanitarian action, fix, by order, a percentage in addition to the percentage fixed in the first paragraph.

1995, c. 66, s. 2.

23. The dividends paid by the company are fixed by the Minister of Finance and not by the directors.

1978, c. 38, s. 23.

24. The books and accounts of the company are audited jointly every year by the Auditor General and an external auditor appointed by the Government. The remuneration of the external auditor is paid out of the revenues of the company. The joint report must accompany the company’s annual report.

1978, c. 38, s. 24; 1993, c. 39, s. 93; 2006, c. 59, s. 126.

25. Not later than 30 June each year, the company must file with the Minister of Finance its financial statements and a report of its activities for the preceding fiscal year; this report must also contain all the information that the Minister may require.

The Minister tables the report and the financial statements in the National Assembly within 15 days after receiving them or, if it is not sitting, within 15 days of resumption.

1978, c. 38, s. 25; 2006, c. 59, s. 127.

DIVISION V MISCELLANEOUS PROVISIONS

1999, c. 74, s. 1.

25.1. No operator of a business may sell a lottery ticket for a lottery scheme conducted and administered by the company to a minor.

Any person may be required to provide proof of age when purchasing a ticket referred to in the first paragraph.

Every document determined in a regulation made by the Government pursuant to the second paragraph of section 13.1 of the Tobacco Act (chapter T-0.01) may be used for the purposes of the second paragraph.

1999, c. 74, s. 2; 2005, c. 29, s. 66.

26. Any person who contravenes any provision of a by-law contemplated in the first paragraph of section 13 or refuses to comply with an order given under such a by-law is guilty of an offence and liable for each day the offence continues, to a fine of not less than $25 nor more than $5,000.

1978, c. 38, s. 26; 1990, c. 4, s. 830.

26.1. The operator of a business who contravenes the first paragraph of section 25.1 is liable to a fine of $300 to $2,000 and, for a subsequent offence in the same retail outlet, to a fine of $600 to $6,000.

1999, c. 74, s. 3.

26.2. In proceedings for a contravention of the first paragraph of section 25.1, no penalty may be imposed on the operator of a business who shows that a reasonable effort was made to verify the age of the person and that there were reasonable grounds to believe that the person was of full age.

1999, c. 74, s. 3.

26.3. Penal proceedings for an offence under the first paragraph of section 25.1 that was committed in its territory may be instituted by a local municipality before a municipal court.

1999, c. 74, s. 3.

26.4. The fine and costs imposed by the municipal court for an offence under this Act shall belong to the local municipality and shall form part of its general fund, except any part of the costs remitted by the collector to another prosecuting party who has borne expenses related to the prosecution and the costs paid to the defendant pursuant to article 223 of the Code of Penal Procedure (chapter C-25.1).

1999, c. 74, s. 3.

27. (Repealed).

1978, c. 38, s. 27; 1992, c. 61, s. 580.

DIVISION VI TRANSITIONAL AND FINAL PROVISIONS

28. (Amendment integrated into c. R-12, s. 55).

1978, c. 38, s. 28.

29. (Amendment integrated into c. R-12, s. 99).

1978, c. 38, s. 29.

30. (Omitted).

1978, c. 38, s. 30.

31. (Amendment integrated into c. R-10, s. 2).

1978, c. 38, s. 31.

32. The company succeeds to the corporation contemplated in section 54 of the Lotteries and Races Act (1969, chapter 28) and, for that purpose, it acquires the rights and assumes the obligations thereof.

1978, c. 38, s. 32.

33. In any Act or proclamation and in any order in council, contract or document, the expression “Société d’exploitation des loteries et courses du Québec” designates the company, and a reference to Division IV of the Lotteries and Races Act or to a provision of that Act is a reference to this Act or to the corresponding provision of this Act.

1978, c. 38, s. 33; 1999, c. 40, s. 285.

34. The by-laws, agreements, accords or understandings made or entered into under Division IV of the Lotteries and Races Act (1969, chapter 28) continue to be in force until they are repealed, replaced or amended by by-laws, agreements, accords or understandings made or entered into under this Act.

1978, c. 38, s. 34.

35. (Omitted).

1978, c. 38, s. 35.

36. (Omitted).

1978, c. 38, s. 36.

37. The Act respecting lotteries, publicity contests and amusement machines (chapter L-6) does not apply to the activities of the company relating to any lottery scheme it conducts and administers, except with respect to State casinos and video lotteries.

1978, c. 38, s. 37; 1993, c. 39, s. 94.

38. The Minister of Finance is entrusted with the application of this Act.

1978, c. 38, s. 38.

39. (Omitted).

1978, c. 38, s. 39.

40. (This section ceased to have effect on 17 April 1987).

1982, c. 21, s. 1; U. K., 1982, c. 11, Sch. B, Part I, s. 33.

REPEAL SCHEDULE

In accordance with section 17 of the Act respecting the consolidation of the statutes and regulations (chapter R-3), chapter 38 of the statutes of 1978, in force on 1 June 1979, is repealed, except sections 35 and 36, effective from the coming into force of chapter S-13.1 of the Revised Statutes.