Decree No. 105/2010/ND-CP dated October 27, 2010 of the Government providing for the sanctioning of administrative violations in lottery business

THE GOVERNMENT

Decree No. 105/2010/ND-CP of October 27, 2010, providing for the sanctioning of administrative violations in lottery business

THE GOVERNMENT

Pursuant to the December 25, 2001 Law on Organization of the Government;

Pursuant to July 2, 2002 Ordinance No. 44/2002/PL-UBTVQH10 on Handling of Administrative Violations, and April 2, 2008 Ordinance No. 04/2008/UBTVQH12 Amending and Supplementing a Number of Articles of the Ordinance on Handling of Administrative Violations;

At the proposal of the Minister of Finance,

DECREES:

Chapter I

GENERAL PROVISIONS

Article 1. Scope of regulation and subjects of application

1. The sanctioning of administrative violations in lottery business applies to individuals, agencies and organizations (below referred collectively to as individuals and organizations) that intentionally or unintentionally violate the law on lottery business which are not crimes and, under this Decree, must be administratively sanctioned.

2. This Decree applies to Vietnamese individuals and organizations; and foreign individuals and organizations operating in the territory of the Socialist Republic of Vietnam that commit administrative violations in lottery business specified in this Decree.

3. Other administrative violations in lottery business which are not specified in this Decree shall be administratively sanctioned under other legal documents on sanctioning of administrative violations in relevant state management domains.

Article 2. Principles of sanctioning

1. All administrative violations in lottery business must be detected in time and stopped immediately. Administrative violations in lottery business shall be sanctioned promptly, fairly and thoroughly; all consequences caused by administrative violations shall be remedied under law.

2. Administrative violations in lottery business shall be sanctioned by competent persons under this Decree.

3. An administrative violation in lottery business shall be sanctioned only once. An individual or organization committing many administrative violations shall be sanctioned for every violation.

4. Sanctioning of administrative violations in lottery business must be based on the nature and severity of violations, personal identities of violators and extenuating and aggravating circumstances defined in Articles 8 and 9 of Ordinance No. 44/2002/PL-UBTVQH10 on Handling of Administrative Violations (below referred to as the 2002 Ordinance on Handling of Administrative Violations) to decide on appropriate forms and measures of handling.

Article 3. Statute of limitations for sanctioning administrative violations

1. The statute of limitations for sanctioning an administrative violation in lottery business is 2 years after the violation is committed. Past this time limit, no sanction will be imposed but the remedies defined in Clause 3, Article 5 of this Decree shall still be applied.

2. For individuals against whom criminal cases were instituted, who were prosecuted or against whom trial decisions were issued according to criminal  procedures but later decisions are issued to terminate the investigation or their criminal cases and their violations show signs of administrative violation in lottery business, they shall still be administratively sanctioned under this Decree. The statute of limitations for sanctioning such administrative violations is 3 months after the persons with sanctioning competence receive the decisions to terminate the investigation or their criminal cases and the files of their violation.

3. If, within the time limit specified in Clause 1 or 2 of this Article, individuals or organizations commit new administrative violations or deliberately evade or obstruct the sanctioning, the statute of limitations specified in Clause 1 or 2 of this Article will not apply. The statute of limitations for sanctioning such administrative violation shall be re-counted from the time the new administrative violation is committed or the time the act of evading or obstructing the sanctioning stops.

4. Persons with sanctioning competence who let administrative violations unpunished after the statute of limitations for sanctioning shall be handled under Article 121 of the 2002 Ordinance on Handling of Administrative Violations.

Article 4. Time limit for being considered as not yet sanctioned for administrative violations

If, past one year after they completely serve the sanctioning decisions or after the validity of the sanctioning decisions expires, individuals or organizations that have been sanctioned for administrative violations do not commit recidivism, they will be considered as not yet being sanctioned for administrative violations.

Article 5. Forms of sanctioning of administrative violations and remedies

1. For each administrative violation in lottery business, the violator is liable to either of the following sanctions:

a/ Caution;

b/ Fine.

The maximum fine for an administrative violation in lottery business is VND 100,000,000.

2. Depending on the nature and severity of their violations, violators are also subject to either or both of the following additional sanctions:

a/ Confiscation of material evidence and means used for administrative violations;

b/ Definite or indefinite deprivation of the right to use certificates of eligibility for lottery business.

3. In addition to the sanctions specified in Clauses 1 and 2 of this Article, violators may also be compelled to take one or more of the following remedies:

a/ To conduct lottery business in the designated geographical area;

b/ To cancel and correct erroneous prize-winning results which are not true to certification minutes of Lottery Supervision Councils;

c/ To add or correct data which are incompletely or inaccurately reported;

d/ To recover money amounts already spent or paid as lottery prizes in violation of regulations;

e/ Other remedies as specified in Chapter II of this Decree.

Chapter II

VIOLATIONS, SANCTIONING FORMS AND LEVELS

Article 6. Violations of regulations on dossiers of application for certificates of eligibility for lottery business

1. A fine of between VND 2,000,000 and 5,000,000 shall be imposed on lottery enterprises that modify or erase at their own discretion documents in their dossiers of application for certificates of eligibility for lottery business.

2. A fine of between VND 5,000,000 and 10,000,000 shall be imposed on lottery enterprises that falsify or forge documents in their dossiers of application for certificates of eligibility for lottery business.

3. Additional sanction:

Confiscation of modified, erased, falsified or forged documents, for administrative violations specified in this Article.

4. Remedy:

Forced addition of dossier documents as required by law, for administrative violations specified in this Article.

Article 7. Violations of regulations on management and use of certificates of eligibility for lottery business

1. A fine of between VND 30,000,000 and 50,000,000 shall be imposed on individuals or organizations that erase or modify certificates of eligibility for lottery business.

2. A fine of between VND 50,000,000 and 70,000,000 shall be imposed on individuals or organizations that lend, lease or transfer certificates of eligibility for lottery business.

3. A fine of between VND 70,000,000 and 100,000,000 shall be imposed on individuals or organizations that conduct lottery business without certificates of eligibility for lottery business issued by a competent state agency.

4. Additional sanction:

Deprivation of the right to use certificates of eligibility for lottery business for between 90 days and 180 days, for administrative violations specified in Clauses 1 and 2 of this Article.

5. Remedy:

Forced recovery of all amounts acquired from commission of an administrative violation specified in this Article.

Article 8. Violations of regulations on printing and distribution of lottery tickets

1. A fine of between VND 5,000,000 and 10,000,000 shall be imposed on lottery enterprises for committing any of the following acts:

a/ Printing lottery tickets with inadequate mandatory contents;

b/ Signing lottery ticket printing contracts with printing establishments which are ineligible for lottery ticket printing.

2. A fine of between VND 10,000,000 and 15,000,000 shall be imposed on lottery enterprises for committing any of the following acts:

a/ Distributing lottery tickets with par values in violation of regulations;

b/ Distributing lottery ticket volumes beyond permitted quota;

c/ Distributing lottery tickets at variance with prize-drawing time table;

d/ Distributing e-lottery tickets not according to prescribed time.

3. A fine of between VND 15,000,000 and 20,000,000 shall be imposed on lottery enterprises for printing lottery tickets fewer than the volume announced for each ticket series and prize structure.

4. A fine of between VND 20,000,000 and 30,000,000 shall be imposed on individuals and organizations for modifying, erasing or forging lottery tickets in any form for participation in prize drawing and winning prizes.

5. Additional sanctions:

a/ Confiscation of the entire volume of lottery tickets used for administrative violations specified in Clauses 2 and 4 of this Article;

b/ Deprivation of the right to use certificates of eligibility for lottery business for between 15 and 30 days, for administrative violations specified in Clauses 2 and 3 of this Article.

6. Remedies:

a/ Forced recovery of all earning amounts acquired from the commission of an administrative violation specified in this Article;

b/ Forced observance of law, for administrative violations specified in Clauses 1, 2 and 3 of this Article.

Article 9. Violations of regulations on lottery ticket distribution

1. Caution shall be imposed on individuals or organizations for committing any of the following violations:

a/ Selling lottery tickets to individuals who are unqualified for participation in lottery prize drawing according to regulations;

b/ Selling lottery tickets at variance with their par value.

2. A fine of between VND 5,000,000 and 10,000,000 shall be imposed on individuals or organizations for distributing lottery tickets against permitted methods of distribution.

3. Remedies:

a/ Forced recovery of all amounts acquired from the commission of an administrative violation specified in  this Article;

b/ Forced observance of law, for administrative violations specified in this Article.

Article 10. Violations of regulations on lottery business areas

1. A fine of between VND 7,000,000 and 10,000,000 shall be imposed on individuals or organizations for conducting lottery business outside designated areas.

2. Additional sanction:

Confiscation of the whole volume of lottery tickets on sale outside designated areas.

3. Remedies:

a/ Forced recovery of all earning amounts acquired from the commission of an administrative violations specified in this Article;

b/ Forced conducting of business in areas designated by law, for administrative violations specified in this Article.

Article 11. Violations of regulations on types of business products

1. A fine of between VND 15,000,000 and 20,000,000 shall be imposed on lottery enterprises for dealing in types of unlicensed products.

2. Additional sanctions:

a/ Confiscation of the whole volume of unlicensed lottery tickets;

b/ Deprivation of the right to use certificates of eligibility for lottery business for between 30 and 60 days, for administrative violations specified in this Article.

3. Remedies:

a/ Forced recovery of all earning amounts acquired from the commission of an administrative violation specified in this Article;

b/ Forced dealing in types of licensed products, for administrative violations specified in this Article.

Article 12. Violations of regulations on lottery prize percentages and prize structures

1. A fine of between VND 3,000,000 and 5,000,000 shall be imposed on lottery enterprises for committing any of the following violations:

a/ Setting a prize payment percentage for each distribution drive higher than the maximum percentage prescribed for each lottery type;

b/ Building a prize structure for each lottery type in violation of regulations.

2. A fine of between VND 5,000,000 and 10,000,000 shall be imposed on lottery enterprises for failing to formulate rules on participation in prize drawing and announce them to customers.

3. Remedies:

a/ Forced recovery of all prize money amounts paid in excess of prescribed percentage, for administrative violations specified in Clause 1 of this Article;

b/ Forced observance of law, for administrative violations specified in this Article.

Article 13. Violations of regulations on participation in lottery prize drawing

1. Caution shall be imposed on individuals unqualified for participating in lottery prize drawing for deliberately buying lottery tickets for participation in prize drawing.

2. A fine of between VND 15,000,000 and 20,000,000 shall be imposed on individuals or organizations for using state funds and assets to buy lottery tickets.

3. Remedies:

a/ Forced recovery of all amounts acquired from the commission of an administrative violation specified in this Article;

b/ Forced observance of law, for administrative violations specified in this Article.

Article 14. Violations of regulations on recovery, storage and destruction of unsold lottery tickets

1. Caution shall be imposed on lottery enterprises for committing any of the following violations:

a/ Failing to formulate and promulgate detailed regulations on the process of recovering unsold tickets;

b/ Authorizing without an authorization document other lottery enterprises to recover unsold tickets.

2. A fine of between VND 5,000,000 and 10,000,000 shall be imposed lottery enterprises for committing any of the following violations:

a/ Destroying unsold tickets, ticket counterfoils or retained ticket parts which have been recovered and stored for a period shorter than prescribed;

b/ Failing to set up ticket destruction councils or setting up ticket destruction councils with inadequate number of members as required;

c/ Failing to make minutes of destruction of unsold tickets.

3. Remedies:

Forced observance of law, for administrative violations specified in this Article.

Article 15. Acts of violating regulations on organization of lottery prize drawing

1. A fine of between VND 10,000,000 and 15,000,000 shall be imposed on lottery enterprises for committing any of the following violations:

a/ Organizing prize drawing at variance with prize-drawing time table;

b/ Organizing prize drawings at places other than designated ones;

c/ Failing to formulate and publicize prize drawing rules.

2. A fine of between VND 20,000,000 and 30,000,000 shall be imposed on lottery enterprises for committing any of the following violations:

a/ Selecting prize drawers who are unqualified under law;

b/ Organizing prize drawing in violation of the prescribed process.

3. A fine of between VND 40,000,000 and 50,000,000 shall be imposed on individuals or organizations for deliberately falsifying prize winning results.

4. Remedies:

a/ Forced recovery of all earning amounts acquired from the commission of an administrative violation specified in this Article;

b/ Forced cancellation and correction of falsified prize winning results, for administrative violations specified in Clause 3 of this Article;

c/ Forced observance of law, for administrative violations specified in Clauses 1 and 2 of this Article.

Article 16. Violations of regulations on prize drawing equipment

1. A fine of between VND 20,000,000 and 30,000,000 shall be imposed on lottery enterprises for committing any of the following violations:

a/ Failing to have adequate lottery prize-drawing equipment as required;

b/ Using prize-drawing spinning cages which do not satisfy prescribed management requirements;

c/ Using prize-drawing balls which do not satisfy prescribed management requirements;

d/ Using electronic scales and equipment which do not satisfy prescribed management requirements to examine the size of prize-drawing balls;

e/ The system of cameras and monitors arranged at locations failing to ensure surveillance of the whole prize-drawing process according to regulations and failing to store camera-recorded images for the prescribed minimum duration.

2. Remedy:

Forced observance of law, for administrative violations specified in this Article.

Article 17. Violations of regulations on use of prize-drawing results and prize-winning information

1. A fine of between VND 15,000,000 and 20,000,000 shall be imposed on individuals or organizations for using prize-drawing results of lottery enterprises to organize prize-drawing programs.

2. A fine of between VND 40,000,000 and 50,000,000 shall be imposed on lottery enterprises for deliberately informing prize-winning results which are incorrect and different from those written in certification minutes of Lottery Supervision Councils.

3. Additional sanction:

Deprivation of the right to use certificates of eligibility for lottery business for between 90 and 180 days, for administrative violations specified in Clause 2 of this Article.

4. Remedies:

a/ Forced cancellation or correction of results which are incorrect and different from certification minutes of Lottery Supervision Councils, for administrative violations specified in Clause 2 of this Article;

b/ Forced recovery of all earning amounts acquired from the commission of an administrative violation specified in this Article.

Article 18. Violations of regulations on prize payment

1. A fine of between VND 3,000,000 and 5,000,000 shall be imposed on lottery enterprises for paying prizes to lottery tickets which fail to meet prize-paying conditions according to regulations.

2. A fine of between VND 5,000,000 and 10,000,000 shall be imposed on lottery enterprises for committing any of the following violations:

a/ Deliberately prolonging the payment of prizes to winners;

b/ Destroying winning tickets for which prizes have been paid, which have been, however, stored for a duration shorter than prescribed.

3. A fine of between VND 10,000,000 and 15,000,000 shall be imposed on lottery enterprises for violating regulations on confidentiality of information on payment of prizes to winners.

4. A fine of between VND 15,000,000 and 20,000,000 shall be imposed on lottery enterprises for authorizing agents to pay prizes in excess of the authorized prize value.

5. Remedies:

a/ Forced recovery of all prize money amounts paid by themselves or paid under authorization in violation of regulations, for administrative violations specified in Clauses 1 and 4 of this Article;

b/ Forced observance of law, for administrative violations specified in this Article.

Article 19. Violations of regulations on business conditions for e-lottery systems

1. A fine of between VND 30,000,000 and 50,000,000 shall be imposed on lottery enterprises for conducting e-lottery business without satisfying the conditions on equipment, including servers and lottery ticket-selling machines, as required.

2. A fine of between VND 50,000,000 and 70,000,000 shall be imposed on lottery enterprises for conducting e-lottery business without satisfying software conditions as required.

3. Additional sanction:

Deprivation of the right to use certificates of eligibility for conducting lottery business for between 90 and 180 days, for administrative violations specified in this Article.

4. Remedies:

a/ Forced recovery of all earning amounts acquired from the commission of an administrative violation specified in this Article;

b/ Forced observance of law, for administrative violations specified in this Article.

Article 20. Violations of regulations on lottery agents

1. A fine of between VND 2,000,000 and 5,000,000 shall be imposed on lottery agents for modifying or erasing documents in the dossiers of application for lottery agency.

2. A fine of between VND 5,000,000 and 10,000,000 shall be imposed on lottery agents for falsifying or forging documents in the dossiers of application for lottery agency.

3. A fine of between VND 10,000,000 and 20,000,000 shall be imposed on lottery enterprises for committing any of the following violations:

a/ Signing agency contracts with individuals or organizations that are unqualified under regulations to act as lottery agents;

b/ Failing to ensure the minimum payment security percentage prescribed for lottery agents;

c/ Permitting lottery agents to owe overdue debts or delay payment of lottery ticket sales.

4. Additional sanction:

Confiscation of modified, erased, falsified or forged documents, for administrative violations specified in this Article.

5. Remedy:

Forced observance of law, for administrative violations specified in Clause 3 of this Article.

Article 21. Violations of regulations on agency commissions, deduction for formation of reserve prize payment funds and financial funds and use of funds

1. A fine of between VND 10,000,000 and 20,000,000 shall be imposed on lottery enterprises for paying commissions to lottery agents higher than prescribed percentages.

2. A fine of between VND 20,000,000 and 30,000,000 shall be imposed on lottery enterprises for deliberately making deductions to form, or using prize payment reserve funds or financial funds in violation of regulations.

3. Remedy:

Forced observance of law, for administrative violations specified in this Article.

Article 22. Violations of regulations on reporting on lottery business

1. A fine of between VND 5,000,000 and 10,000,000 shall be imposed on lottery enterprises for committing any of the following violations:

a/ Failing to submit or sufficiently submit reports to competent state bodies;

b/ Delaying the submission of reports to competent state bodies;

c/ Submitting reports containing incomplete and incorrect information and data.

2. Remedies:

a/ Lottery enterprises forced to supplement and correct reported data, for administrative violations specified at Point c, Clause 1 of this Article;

b/ Forced observance of law, for administrative violations specified in this Article.

Article 23. Violations of regulations on sale promotion in lottery business

1. A fine of between VND 10,000,000 and 20,000,000 shall be imposed on individuals or organizations for conducting lottery sale promotion.

2. Additional sanctions:

a/ Confiscation of all means and material evidence used for sale promotion;

b/ Deprivation of the right of lottery enterprises to use certificates of eligibility for lottery business for between 30 and 60 days, for administrative violations specified in this Article.

3. Remedies:

a/ Forced recovery of all earning amounts acquired from the commission of an administrative violation specified in this Article;

b/ Forced observance of law, for administrative violations specified in this Article.

Chapter III

SANCTIONING COMPETENCE AND PROCEDURES, COMPLAINTS, DENUNCIATIONS AND HANDLING OF VIOLATIONS

Article 24. Competence to sanction administrative violations in lottery business

1. Finance inspectors of all levels on duty have the competence to:

a/ Impose caution;

b/ Impose fines of up to VND 500,000;

c/ Confiscate material evidence and means used for administrative violations, which are valued at up to VND 2,000,000;

d/ Apply remedies specified in Clause 3, Article 5 of this Decree.

2. Chief inspectors of provincial-level Finance Departments have the competence to:

a/ Impose caution;

b/ Impose fines of up to VND 30,000,000;

c/ Confiscate material evidence and means used for committing administrative violations;

d/ Apply remedies specified in Clause 3, Article 5 of this Decree.

3. The chief inspector of the Finance Ministry has the competence to:

a/ Impose caution;

b/ Impose fines of up to VND 100,000,000;

c/ Deprive of the right to use certificates of eligibility for lottery business according to his/her competence prescribed by law;

d/ Confiscate material evidence and means used for administrative violations;

e/ Apply remedies specified in Clause 3, Article 5 of this Decree.

4. People’s Committee chairpersons at all levels may, within the scope of their respective competence defined in the Ordinance on Handling of Administrative Violations, sanction administrative violations in lottery business under this Decree.

Article 25. Other agencies’ competence to sanction administrative violations

In addition to competent sanctioning persons defined in Article 24 of this Decree, other agencies’ persons competent to sanction administrative violations under the 2002 Ordinance on Handling of Administrative Violations or the 2008 revised Ordinance on Handling of Administrative Violations may, within the ambit of their respective functions and assigned tasks, sanction administrative violations specified in this Decree, which they have detected and fall within the domains or geographical areas under their respective management.

Article 26. Sanctioning procedures, enforcement of sanctioning decisions, enforcement of decisions to sanction administrative violations in lottery business

1. Procedures for sanctioning administrative violations in lottery business comply with the 2002 Ordinance on Handling of Administrative Violations and Article 1 of the 2008 revised Ordinance on Handling of Administrative Violations.

2. Individuals and organizations sanctioned for administrative violations in lottery business under this Decree shall strictly abide by sanctioning decisions of competent persons within ten days after they receive such decisions, unless otherwise provided for by law.

3. Sanctioned individuals and organizations that fail to voluntarily abide by sanctioning decisions shall be compelled to abide by such decisions under Articles 66 and 66a of the 2002 Ordinance on Handling of Administrative Violations, the 2008 revised Ordinance on Handling of Administrative Violations and regulations on enforcement of decisions on sanctioning administrative violations.

4. The order of and procedures for enforcement of decisions on sanctioning administrative violations in lottery business comply with Articles 66 and 67 of the 2002 Ordinance on Handling of Administrative Violations, the 2008 revised Ordinance on Handling of Administrative Violations and regulations on enforcement of decisions on sanctioning administrative violations.

Article 27. Forms of minutes and decisions used in the handling of administrative violations

Promulgated together with this Decree are appendices on forms of minutes and decisions for use in the sanctioning of administrative violations in lottery business (not printed herein).

Article 28. Fine receipts, management and use of fines for administrative violations in lottery business

Fine receipts and the management and use of fines for administrative violations in lottery business comply with the Government’s Decree No. 124/2005/ND-CP of October 6, 2005, on fine receipts and management and use of administrative violation fines.

Article 29. Complaints and denunciations

Complaints and denunciations about decisions on sanctioning of administrative violations in lottery business and their settlement comply with the law on complaints and denunciations.

Article 30. Handling of violations

1. Persons sanctioned for administrative violations in lottery business that oppose officers on duty or delay or evade the implementation of decisions of competent sanctioning persons shall, depending on the nature and severity of their violations, be administratively handled or examined for penal liability; if causing damage, they shall pay compensation according to law.

2. Persons competent to handle administrative violations in lottery business who harass for bribes, tolerate, cover up, fail to handle or handle not in time, inappropriately or ultra vires administrative violations, shall, depending on the nature and severity of their violations, be disciplined or examined for penal liability; if causing damage, they shall pay compensation according to law.

Chapter IV

IMPLEMENTATION PROVISIONS

Article 31. Implementation provisions

1. This Decree takes effect on December 15, 2010.

2. The Finance Minister shall guide, examine and supervise the implementation of this Decree.

3. Ministers, heads of ministerial-level agencies, heads of government-attached agencies and chairpersons of provincial-level People’s Committees shall implement this Decree.-

On behalf of the Government
Prime Minister
NGUYEN TAN DUNG