277 Purposes for which profits may be distributed

(1)

Except as otherwise expressly provided in this subpart, the profits of New Zealand lotteries must be distributed, in accordance with the determinations of the distribution committees or the Minister, for community purposes only and for no other purpose.

(2)

For the purposes of this section, a distribution is for community purposes if it would contribute to the building of strong sustainable communities by encouraging or enabling—

(a)

community self-reliance, capacity building, and stability; or

(b)

opportunities for social, recreational, civil, or cultural participation and reducing or overcoming barriers to such participation; or

(c)

community and environmental health; or

(d)

development and preservation of New Zealand’s arts, culture, heritage, and national identity; or

(e)

sports and recreation.

(3)

A distribution for community purposes must be for a purpose that involves a community benefit of a public nature. A distribution will not be treated as being for community purposes if it involves private pecuniary profit or gain for an individual or body, except to the extent that the profit or gain arises as a mere incident of the principal purpose or purposes of the distribution.

(4)

In considering the matters specified in subsection (2), a distribution committee or the Minister must have regard to the needs of Māori.

(5)

In considering those matters, a distribution committee or the Minister must, as appropriate, also have regard to the needs of older people, Pacific people and other ethnic communities, women, youth, and people with disabilities.

(6)

Despite anything in this section, if the Minister instructs the Lotteries Commission to promote and conduct a New Zealand lottery for a particular purpose under section 245, the profits of the lottery must be expended for that purpose.

(7)

Profits of New Zealand lotteries distributed in accordance with subsection (1) or expended in accordance with subsection (2) are not subject to section 165 of the Crown Entities Act 2004.

Compare: 1977 No 84 s 116H

Section 277(7): amended, on 25 January 2005, by section 37(1) of the Public Finance Amendment Act 2004 (2004 No 113).