Introduction to the Internet Casino Business MAIN
Software Licensing and a List of Companies that Provide Online Casino and Sportsbook Software SOFTWARE
Online Marketing Companies that get Web Traffic to a Casino Web Site MARKETING
Sublicensing an Internet Casino and Sportsbook operation from a Licensee AFFILIATE PROGRAMS
Payment Processing and Merchant Accounts for Internet Casino and Sportsbook operations to use E-COMMERCE
Software Considerations GAME TYPES
Legislation issues for the USA and abroad LEGAL ISSUES
Online Casino and Sportsbook and Other Gambling/Casino Related Conferences CONFERENCES
Economic Factors worth considering with an Online Casino Operation ECONOMICS
Things to Watch for when Starting an Internet Casino and Sportsbook Business PITFALLS
Forums - Hear what others have to say about the business MESSAGE BOARDS
Online Casino and Sportsbook Links: News, Stocks, Organizations, etc. LINKS
About Yorktown Ventures and the Author ABOUT US


SIGNUP

Signup for the FREE START CASINO newsletter : Industry News, New Casino and Sportsbook Software, Marketing Opportunities, Upcoming Conferences and Legal Developments

START CASINO . COM
Independent Information Site on Starting an Internet Casino Business
 
English en espa˝ol en Franšais Deutsch Italiano Wersja Polska Japanese Hebrew Mandarin) Cantonese
 

INTERNET CASINO AND SPORTSBOOK INFORMATION
US HOUSE OF REPRESENTATIVES BILL HR1223






PROPOSED LEGISLATION
Provided to  START CASINO . COM   courtesy of the US House of Representatives

HR 1223 IH

108th CONGRESS

1st Session

H. R. 1223

To create a commission on Internet gambling licensing and regulation.

IN THE HOUSE OF REPRESENTATIVES

March 12, 2003

Mr. CONYERS (for himself, Mr. CANNON, Ms. BERKLEY, and Mr. BACA) introduced the following bill; which was referred to the Committee on the Judiciary, and in addition to the Committees on Energy and Commerce, and Financial Services, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned


A BILL

To create a commission on Internet gambling licensing and regulation.

    Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act shall be known as the `Internet Gambling Licensing and Regulation Commission Act'.

SEC. 2. FINDINGS AND POLICY.

    The Congress finds the following:

      (1) Gambling is regulated primarily by State and tribal governments, whose statutes and regulations govern the placement and acceptance of wagers within state boundaries.

      (2) Online gaming is an activity occurring in interstate commerce with millions of Americans participating.

      (3) The advent of advanced telecommunications technologies, and the Internet in particular, has rendered state regulation less effective and confusing with respect to online wagering.

      (4) Federal statutes governing interstate placement of wagers are contradictory and confusing, and they do not adequately address the issues involved with gambling over the Internet, including gambling by minors, problem gamblers, and the susceptibility of Internet gambling to money laundering.

      (5) Commercial casino operations, Native American tribal gaming operations, State lotteries, horse and dog racing tracks, jai alai, and card rooms have made legal land-based gambling available to the vast majority of Americans.

      (6) The use of various types of credit, credit cards, electronic fund transfers, and bank instruments is the principal manner in which individuals fund their engagement in Internet gambling.

      (7) Online gaming should be subject to the consumer protection laws of the United States.

      (8) Various forms of gambling, including inter alia, casino-style, sports wagering, parimutuel wagering (including horse racing, dog racing, and jai alai), State lotteries, noncasino slot machines and others, are subject to disparate Federal, State, and tribal laws and regulations.

      (9) Because of the nature of the Internet, legislative attempts to prohibit Internet gambling are unlikely to be effective, and may adversely impact American's rights to due process and individual privacy.

      (10) It is the policy of the Congress in this Act to establish a commission to study and resolve issues posed by the regulation of interstate commerce with respect to Internet gambling.

SEC. 3. INTERNET GAMBLING LICENSING AND REGULATION STUDY COMMISSION.

    (a) ESTABLISHMENT OF COMMISSION- There is established a commission to be known as the Internet Gambling Licensing and Regulation Study Commission (hereinafter referred to in this Act as the `Commission'). The Commission shall--

      (1) be composed of 5 members appointed in accordance with subsection (b); and

      (2) conduct its business in accordance with the provisions of this Act.

    (b) MEMBERSHIP-

      (1) IN GENERAL- The Commissioners shall be appointed for the life of the Commission as follows:

        (A) 1 shall be appointed by the Speaker of the House of Representatives.

        (B) 1 shall be appointed by the Minority Leader of the House of Representatives.

        (C) 1 shall be appointed by the Majority Leader of the Senate.

        (D) 1 shall be appointed by the Minority Leader of the Senate.

        (E) The 4 commissioners appointed in subparagraphs (A), (B), (C), and (D) shall select by consensus the fifth Commissioner, who shall be the Chairman of the Commission.

      (2) PERSONS ELIGIBLE- The members of the Commission shall be individuals who have knowledge or expertise, whether by experience or training, in matters to be studied by the Commission under section 4. The members may be from the public or private sector, and may include Federal, State, local, or Native American tribal officers or employees, members of academia, nonprofit organizations, industry, or other interested individuals.

      (3) CONSULTATION REQUIRED- The Speaker of the House of Representatives, the Minority Leader of the House of Representatives, the Majority Leader of the Senate, and the Minority Leader of the Senate shall consult among themselves prior to the appointment of the members of the Commission in order to achieve, to the maximum extent possible, fair and equitable representation of various points of view with respect to the matters to be studied by the Commission under section 4.

      (4) COMPLETION OF APPOINTMENTS; VACANCIES- The Speaker of the House of Representatives, the Minority Leader of the House of Representatives, the Majority Leader of the Senate, and the Minority Leader of the Senate shall conduct the consultation required under paragraph (3) and shall each make their respective appointments not later than 60 days after the date of enactment of this Act. Any vacancy that occurs during the life of the Commission shall not affect the powers of the Commission, and shall be filled in the same manner as the original appointment not later than 60 days after the vacancy occurs.

      (5) OPERATION OF THE COMMISSION-

        (A) MEETINGS- The Commission shall meet at the call of the Chairman. The initial meeting of the Commission shall be conducted not later than 30 days after the appointment of the last member of the Commission, or not later than 30 days after the date on which appropriated funds are available for the Commission, whichever is later.

        (B) QUORUM; VOTING; RULES- A majority of the members of the Commission shall constitute a quorum to conduct business, but the Commission may establish a lesser quorum for conducting hearings scheduled by the Commission. Each member of the Commission shall have 1 vote, and the vote of each member shall be accorded the same weight. The Commission may establish by majority vote any other rules for the conduct of the Commission's business, if such rules are not inconsistent with this Act or other applicable law.

SEC. 4. DUTIES OF THE COMMISSION.

    (a) STUDY-

      (1) IN GENERAL- It shall be the duty of the Commission to conduct a comprehensive study of the existing legal framework governing Internet gambling and the issues involved with the licensing and regulation of Internet gambling.

      (2) MATTERS TO BE STUDIED- The matters studied by the Commission under paragraph (1) shall include, but not be limited to--

        (A) a review of existing international, Federal, State, tribal, and local laws governing various forms of wagering over the Internet, the effectiveness of those laws, and their conformity with each other;

        (B) an assessment of the impact of Internet gambling with respect to problem gambling;

        (C) an assessment of the impact of Internet gambling on the availability of gambling to minors;

        (D) an assessment of the susceptibility of Internet gambling to money laundering by terrorists or criminal enterprises;

        (E) the potential of regulatory measures to minimize any adverse impacts of Internet gambling, including the problems identified in subparagraphs (B), (C), and (D);

        (F) an evaluation of the personal use of credit, credit cards, electronic fund transfers, and bank instruments to fund the engagement in Internet gambling, including an assessment of the potential of these means to minimize any adverse impacts of Internet gambling, including the problems identified in subparagraphs (B), (C), and (D);

        (G) issues of federalism posed by the regulation of Internet gambling, and the reconciliation of a state-based legal framework with an inherently interstate and international medium such as the Internet;

        (H) the problems of unregulated international Internet wagering, and options for the Federal Government to seek international cooperation in the licensing and regulation of such gambling; and

        (I) an assessment of the activities in the European Union member states to regulate and license Internet gambling.

    (b) REPORT- Not later than 1 year after the date on which the Commission first meets, the Commission shall submit to the President, the Congress, State Governors, and Native American tribal governments a comprehensive report on the Commission's findings and conclusions.

    (c) RECOMMENDATIONS- Not later than 6 months after the submission of the report under subsection (b) the Commission shall issue proposed changes to Federal laws and regulations to provide for the licensing and regulation of Internet gambling in the United States. These proposals shall--

      (1) preserve the prerogatives of States with respect to intrastate gambling and wagering within their borders, and the further prerogative of States to regulate the placement and acceptance of online wagers by their citizens, including to adopt measures to prevent wagering by individuals in States where all gambling is illegal;

      (2) include measures to minimize adverse impacts of Internet gambling, including--

        (A) measures to prevent minors from gambling online;

        (B) measures to prevent the use of Internet gambling as a money laundering channel for terrorists and criminal enterprises; and

        (C) measures to identify, and where possible, provide assistance to problem gamblers online;

      (3) preserve tribal sovereignty with respect to gaming and Internet gaming in a manner consistent with the decision of the Supreme Court of the United States in California v. Cabazon Band of Mission Indians, 480 U.S. 202, 107 S. Ct. 1083 (1987);

      (4) clarify and harmonize the Federal laws governing gambling as they apply to Internet gambling, and eliminate the disparate treatment of various forms of Internet gambling, except in cases where the disparity serves a compelling State interest;

      (5) provide for the appropriate taxation of Internet gambling enterprises;

      (6) provide for the licensing of enterprises both within the United States and outside of its borders;

      (7) consider and, where possible, remain consistent with the goals, principles, and obligations of the United States in other international negotiations governing electronic commerce; and

      (8) include measures to discourage, prohibit, or prevent United States citizens from wagering with unlicensed Internet gambling operations outside of the United States.

SEC. 5. POWERS OF THE COMMISSION.

    (a) HEARINGS-

      (1) IN GENERAL- The Commission may hold such hearings, sit and act at such times and places, administer such oaths, take such testimony, and receive such evidence as the Commission considers advisable to carry out its duties under section 4.

      (2) WITNESS EXPENSES- Witnesses requested to appear before the Commission shall be paid the same fees as are paid to witnesses under section 1821 of title 28, United States Code. The per diem and mileage allowances for witnesses shall be paid from funds appropriated to the Commission.

    (b) SUBPOENAS-

      (1) IN GENERAL- If a person fails to supply information requested by the Commission, the Commission may by majority vote require by subpoena the production of any written or recorded information, document, report, answer, record, account, paper, computer file, or other data or documentary evidence necessary to carry out its duties under section 4. The Commission shall transmit to the Attorney General a confidential, written notice at least 10 days in advance of the issuance of any such subpoena. A subpoena under this paragraph may require the production of materials from any place within the United States.

      (2) INTERROGATORIES- The Commission may, with respect only to information necessary to understand any materials obtained through a subpoena under paragraph (1), issue a subpoena requiring the person producing such materials to answer, either through a sworn deposition or through written answers provided under oath (at the election of the person upon whom the subpoena is served), to interrogatories from the Commission regarding such information. A complete recording or transcription shall be made of any deposition made under this paragraph.

      (3) CERTIFICATION- Each person who submits materials or information to the Commission pursuant to a subpoena issued under paragraph (1) or (2) shall certify to the Commission the authenticity and completeness of all materials or information submitted. The provisions of section 1001 of title 18, United States Code, shall apply to any false statements made with respect to the certification required under this paragraph.

      (4) TREATMENT OF SUBPOENAS- Any subpoena issued by the Commission under paragraph (1) or (2) shall comply with the requirements for subpoenas issued by a United States district court under the Federal Rules of Civil Procedure.

      (5) FAILURE TO OBEY A SUBPOENA- If a person refuses to obey a subpoena issued by the Commission under paragraph (1) or (2), the Commission may apply to a United States district court for an order requiring that person to comply with such subpoena. The application may be made within the judicial district in which that person is found, resides, or transacts business. Any failure to obey the order of the court may be punished by the court as civil contempt.

    (c) INFORMATION FROM FEDERAL AGENCIES- The Commission may secure directly from any Federal department or agency such information as the Commission considers necessary to carry out its duties under section 4. Upon the request of the Commission, the head of such department or agency may furnish such information to the Commission.

    (d) INFORMATION TO BE KEPT CONFIDENTIAL- The Commission shall be considered an agency of the Federal Government for purposes of section 1905 of title 18, United States Code, and any individual employed by an individual, entity, or organization under contract to the Commission under section 7 shall be considered an employee of the Commission for the purposes of section 1905 of title 18, United States Code. Information obtained by the Commission, other than information available to the public, shall not be disclosed to any person in any manner, except--

      (1) to Commission employees or employees of any individual, entity, or organization under contract to the Commission under section 7 for the purpose of receiving, reviewing, or processing such information;

      (2) upon court order; or

      (3) when publicly released by the Commission in an aggregate or summary form that does not directly or indirectly disclose--

        (A) the identity of any person or business entity; or

        (B) any information which could not be released under section 1905 of title 18, United States Code.

SEC. 6. COMMISSION PERSONNEL MATTERS.

    (a) COMPENSATION OF MEMBERS- Each member of the Commission who is not an officer or employee of the Federal Government, or whose compensation is not precluded by a State, local, or Native American tribal government position, shall be compensated at a rate equal to the daily equivalent of the annual rate of basic pay prescribed for level IV of the Executive Schedule under section 5315 of title 5, United States Code, for each day (including travel time) during which such member is engaged in the performance of the duties of the Commission. All members of the Commission who are officers or employees of the United States shall serve without compensation in addition to that received for their services as officers or employees of the United States.

    (b) TRAVEL EXPENSES- The members of the Commission shall be allowed travel expenses, including per diem in lieu of subsistence, at rates authorized for employees of agencies under subchapter I of chapter 57 of title 5, United States Code, while away from their homes or regular places of business in the performance of service for the Commission.

    (c) STAFF-

      (1) IN GENERAL- The Chairman of the Commission may, without regard to the civil service laws and regulations, appoint and terminate an executive director and such other additional personnel as may be necessary to enable the Commission to perform its duties. The employment and termination of an executive director shall be subject to confirmation by a majority of the members of the Commission.

      (2) COMPENSATION- The executive director shall be compensated at a rate not to exceed the rate payable for level V of the Executive Schedule under section 5316 of title 5, United States Code. The Chairman may fix the compensation of other personnel without regard to the provisions of chapter 51 and subchapter III of chapter 53 of title 5, United States Code, relating to classification of positions and General Schedule pay rates, except that the rate of pay for such personnel may not exceed the rate payable for level V of the Executive Schedule under section 5316 of such title.

      (3) DETAIL OF GOVERNMENT EMPLOYEES- Any Federal Government employee, with the approval of the head of the appropriate Federal agency, may be detailed to the Commission without reimbursement, and such detail shall be without interruption or loss of civil service status, benefits, or privilege.

    (d) PROCUREMENT OF TEMPORARY AND INTERMITTENT SERVICES- The Chairman of the Commission may procure temporary and intermittent services under section 3109(b) of title 5, United States Code, at rates for individuals not to exceed the daily equivalent of the annual rate of basic pay prescribed for level V of the Executive Schedule under section 5316 of such title.

SEC. 7. CONTRACTS FOR RESEARCH.

    (a) ADVISORY COMMISSION ON INTERGOVERNMENTAL RELATIONS-

      (1) IN GENERAL- In carrying out its duties under section 4, the Commission shall contract with the Advisory Commission on Intergovernmental Relations for--

        (A) a thorough review and cataloging of all applicable Federal, State, local, and Native American tribal laws, regulations, and ordinances that pertain to gambling in the United States; and

        (B) assistance in conducting the studies required by the Commission under section 4(a), and in particular the review and assessments required in subparagraphs (A), (E), and (G) of paragraph (2) of such section.

      (2) REPORT REQUIRED- The contract entered into under paragraph (1) shall require that the Advisory Commission on Intergovernmental Relations submit a report to the Commission detailing the results of its efforts under the contract not later than 15 months after the date upon which the Commission first meets.

    (b) NATIONAL RESEARCH COUNCIL-

      (1) IN GENERAL- In carrying out its duties under section 4, the Commission shall contract with the National Research Council of the National Academy of Sciences for assistance in conducting the studies required by the Commission under section 4(a).

      (2) REPORT REQUIRED- The contract entered into under paragraph (1) shall require that the National Research Council submit a report to the Commission detailing the results of its efforts under the contract not later than 15 months after the date upon which the Commission first meets.

    (c) OTHER ORGANIZATIONS- Nothing in this section shall be construed to limit the ability of the Commission to enter into contracts with other entities or organizations for research necessary to carry out the Commission's duties under section 4.

SEC. 8. DEFINITIONS.

    For the purposes of this Act:

      (1) BANK INSTRUMENT- The term `bank instrument' means any instrument drawn on or payable through a financial institution (including any check, draft, or similar instrument).

      (2) CREDIT AND CREDIT CARD- The terms `credit' and `credit card' have the meanings given such terms in section 103 of the Truth in Lending Act (15 U.S.C. 1602).

      (3) ELECTRONIC FUND TRANSFER- The term `electronic fund transfer'--

        (A) has the meaning given such term in section 903 of the Electronic Fund Transfer Act (15 U.S.C. 1693a); and

        (B) includes any fund transfer covered by Article 4A of the Uniform Commercial Code, as in effect in any State.

      (4) FINANCIAL INSTITUTION- The term `financial institution' has the meaning given such term in section 903 of the Electronic Fund Transfer Act (15 U.S.C. 1693a).

      (5) GAMBLING-

        (A) Except as provided in subparagraph (B), the term `gambling' means any legalized form of wagering or betting conducted in a casino, on a riverboat, on an Indian reservation, or at any other location under the jurisdiction of the United States. Such term includes any casino game, parimutuel betting, sports-related betting, lottery, pull-tab game, slot machine, any type of video gaming, computerized wagering or betting activities (including any such activity conducted over the Internet), and philanthropic or charitable gaming activities.

        (B) The term `gambling' does not include--

          (i) any activity governed by the securities laws (as that term is defined in section 3(a)(47) of the Securities Exchange Act of 1934) for the purchase or sale of securities (as that term is defined in section 3(a)(10) of such Act);

          (ii) any transaction conducted on or subject to the rules of a registered entity or exempt board of trade pursuant to the Commodity Exchange Act;

          (iii) any over-the-counter derivative instrument;

          (iv) any contract of indemnity or guarantee;

          (v) any contract for insurance;

          (vi) any deposit or other transaction with a depository institution (as defined in section 3(c) of the Federal Deposit Insurance Act); or

          (vii) any participation in a simulation sports game or an educational game or contest that--

            (I) is not dependent solely on the outcome of any single sporting event or nonparticipant's singular individual performance in any single sporting event;

            (II) has an outcome that reflects the relative knowledge and skill of the participants with such outcome determined predominantly by accumulated statistical results of sporting events; and

            (III) offers a prize or award to a participant that is established in advance of the game or contest and is not determined by the number of participants or the amount of any fees paid by those participants.

      (6) NATIVE AMERICAN TRIBAL GOVERNMENT- The term `Native American tribal government' means an Indian tribe, as defined under section 4(5) of the Indian Gaming Regulatory Act of 1988 (25 U.S.C. 2703(5)).

      (7) STATE- The term `State' means each of the several States of the United States, the District of Columbia, the Commonwealth of Puerto Rico, the Virgin Islands, Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands.

SEC. 9. AUTHORIZATION OF APPROPRIATIONS.

    (a) IN GENERAL- There are authorized to be appropriated to the Commission, the Advisory Commission on Intergovernmental Relations, and the National Academy of Sciences such sums as may be necessary to carry out the purposes of this Act. Any sums appropriated shall remain available, without fiscal year limitation, until expended.

    (b) LIMITATION- No payment may be made under section 6 or 7 of this Act except to the extent provided for in advance in an appropriation Act.

SEC. 10. TERMINATION OF THE COMMISSION.

    The Commission shall terminate 60 days after the Commission submits the report required under section 4(b).

MAIN    SOFTWARE    MARKETING    AFFILIATE PROGRAMS    E-COMMERCE    GAME TYPES    LEGAL ISSUES    CONFERENCES    ECONOMICS    PITFALLS    MESSAGE BOARDS    LINKS    ABOUT US



Questions/Comments? Email the WEBMASTER
Interested in Advertising on this page? E-mail HERE
   Last Update: October 2010    Legal Disclaimers
Copyright © 2000-2017
Yorktown Ventures, Inc
All rights reserved