Home > 106th Congressional Bills > H.R. 441 (eas) [Engrossed Amendment Senate] ...H.R. 441 (eas) [Engrossed Amendment Senate] ...
Union Calendar No. 553
106th CONGRESS
2d Session
H. R. 4419
[Report No. 106-771, Part I]
To prevent the use of certain bank instruments for Internet gambling,
and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
May 10, 2000
Mr. Leach (for himself, Mr. LaFalce, Mrs. Roukema, and Mr. Baker)
introduced the following bill; which was referred to the Committee on
Banking and Financial Services, and in addition to the Committee on the
Judiciary, 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
July 20, 2000
Reported from the Committee on Banking and Financial Services with
amendments
[Strike out all after the enacting clause and insert the part printed
in italic]
July 20, 2000
Referral to the Committee on the Judiciary extended for a period ending
not later than September 22, 2000
July 21, 2000
Referral to the Committee on the Judiciary extended for a period ending
not later than September 29, 2000
September 29, 2000
Additional sponsor: Mr. Green of Wisconsin
September 29, 2000
The Committee on the Judiciary discharged; committed to the Committee
of the Whole House on the State of the Union, and ordered to be printed
[For text of introduced bill, see copy of bill as introduced on May 10,
2000]
_______________________________________________________________________
A BILL
To prevent the use of certain bank instruments for Internet gambling,
and for other purposes.
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 may be cited as the ``Unlawful Internet Gambling Funding
Prohibition Act''.
SEC. 2. FINDINGS.
The Congress finds as follows:
(1) Internet gambling is primarily funded through personal
use of bank instruments, including credit cards and wire
transfers.
(2) The National Gambling Impact Study Commission in 1999
recommended the passage of legislation to prohibit wire
transfers to Internet gambling sites or the banks which
represent them.
(3) Internet gambling is a major cause of debt collection
problems for insured depository institutions and the consumer
credit industry.
(4) Internet gambling conducted through offshore
jurisdictions has been identified by United States law
enforcement officials as a significant money laundering
vulnerability.
SEC. 3. PROHIBITION ON ACCEPTANCE OF ANY BANK INSTRUMENT FOR UNLAWFUL
INTERNET GAMBLING.
(a) In General.--No person engaged in a gambling business may
knowingly accept, in connection with the participation of another
person in unlawful Internet gambling--
(1) credit, or the proceeds of credit, extended to or on
behalf of such other person (including credit extended through
the use of a credit card);
(2) an electronic fund transfer or funds transmitted by or
through a money transmitting business, or the proceeds of an
electronic fund transfer or money transmitting service, from or
on behalf of the other person;
(3) any check, draft, or similar instrument which is drawn
by or on behalf of the other person and is drawn on or payable
at or through any financial institution; or
(4) the proceeds of any other form of financial transaction
as the Secretary may prescribe by regulation which involves a
financial institution as a payor or financial intermediary on
behalf of or for the benefit of the other person.
(b) Definitions.--For purposes of this Act, the following
definitions shall apply:
(1) Bets or wagers.--The term ``bets or wagers''--
(A) means the staking or risking by any person of
something of value upon the outcome of a contest of
others, a sporting event, or a game predominantly
subject to chance, upon an agreement or understanding
that the person or another person will receive
something of greater value than the amount staked or
risked in the event of a certain outcome;
(B) includes the purchase of a chance or
opportunity to win a lottery or other prize (which
opportunity to win is predominantly subject to chance);
(C) includes any scheme of a type described in
section 3702 of title 28; and
(D) does not include--
(i) any bona fide business transaction
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 at a future date of securities
(as that term is defined in section 3(a)(10) of
such Act);
(ii) any transaction on or subject to the
rules of a contract market designated pursuant
to section 5 of the Commodity Exchange Act;
(iii) any over-the-counter derivative
instrument;
(iv) any contract of indemnity or
guarantee;
(v) any contract for life, health, or
accident insurance; or
(vi) 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.
(2) Gambling business.--The term ``gambling business''
means--
(A) a business that is conducted at a gambling
establishment;
(B) a business that--
(i) involves--
(I) the placing, receiving, or
otherwise making of bets or wagers; or
(II) the offering to engage in the
placing, receiving, or otherwise making
of bets or wagers;
(ii) involves 1 or more persons who
conduct, finance, manage, supervise, direct, or
own all or part of such business; and
(iii) has been or remains in substantially
continuous operation for a period in excess of
10 days or has a gross revenue of $2,000 or
more from such business during any 24-hour
period; and
(C) any agent who knowingly solicits for a business
described in subparagraph (A) or (B).
(3) Internet.--The term ``Internet'' means the
international computer network of interoperable packet switched
data networks.
(4) Unlawful internet gambling.--The term ``unlawful
Internet gambling'' means to place, receive, or otherwise make
a bet or wager by any means which involves the use, at least in
part, of the Internet where such bet or wager is unlawful under
any applicable Federal or State law in the State in which the
bet or wager is initiated, received, or otherwise made.
(5) Other terms.--
(A) Credit; creditor; and credit card.--The terms
``credit'', ``creditor'', and ``credit card'' have the
meanings given such terms in section 103 of the Truth
in Lending Act.
(B) Electronic fund transfer.--The term
``electronic fund transfer''--
(i) has the meaning given such term in
section 903 of the Electronic Fund Transfer
Act; and
(ii) includes any fund transfer covered by
Article 4 of the Uniform Commercial Code, as in
effect in any State.
(C) Financial institution.--The term ``financial
institution'' has the meaning given such term in
section 903 of the Electronic Fund Transfer Act.
(D) Money transmitting business and money
transmitting service.--The terms ``money transmitting
business'' and ``money transmitting service'' have the
meanings given such terms in section 5330(d) of title
31, United States Code.
(E) Secretary.--The term ``Secretary'' means the
Secretary of the Treasury.
(c) Civil Remedies.--
(1) Jurisdiction.--The district courts of the United States
shall have original and exclusive jurisdiction to prevent and
restrain violations of this section by issuing appropriate
orders in accordance with this section, regardless of whether a
prosecution has been initiated under this section.
(2) Proceedings.--
(A) Institution by federal government.--
(i) In general.--The United States, acting
through the Attorney General, may institute
proceedings under this subsection to prevent or
restrain a violation of this section.
(ii) Relief.--Upon application of the
United States under this subparagraph, the
district court may enter a preliminary
injunction or an injunction against any person
to prevent or restrain a violation of this
section, in accordance with Rule 65 of the
Federal Rules of Civil Procedure.
(B) Institution by state attorney general.--
(i) In general.--The attorney general of a
State (or other appropriate State official) in
which a violation of this section allegedly has
occurred or will occur may institute
proceedings under this subsection to prevent or
restrain the violation.
(ii) Relief.--Upon application of the
attorney general (or other appropriate State
official) of an affected State under this
subparagraph, the district court may enter a
preliminary injunction or an injunction against
any person to prevent or restrain a violation
of this section, in accordance with Rule 65 of
the Federal Rules of Civil Procedure.
(C) Indian lands.--Notwithstanding subparagraphs
(A) and (B), for a violation that is alleged to have
occurred, or may occur, on Indian lands (as that term
is defined in section 4 of the Indian Gaming Regulatory
Act)--
(i) the United States shall have the
enforcement authority provided under
subparagraph (A); and
(ii) the enforcement authorities specified
in an applicable Tribal-State compact
negotiated under section 11 of the Indian
Gaming Regulatory Act shall be carried out in
accordance with that compact.
(3) Expedited proceedings.--
(A) In general.--In addition to any proceeding
under paragraph (2), a district court may, in exigent
circumstances, enter a temporary restraining order
against a person alleged to be in violation of this
section upon application of the United States under
paragraph (2)(A), or the attorney general (or other
appropriate State official) of an affected State under
paragraph (2)(B), in accordance with Rule 65(b) of the
Federal Rules of Civil Procedure.
(d) Criminal Penalty.--
(1) In general.--Whoever violates this section shall be
fined under title 18, United States Code, or imprisoned for not
more than 5 years, or both.
(2) Permanent injunction.--Upon conviction of a person
under this subsection, the court may enter a permanent
injunction enjoining such person from placing, receiving, or
otherwise making bets or wagers or sending, receiving, or
inviting information assisting in the placing of bets or
wagers.
(e) Safe Harbor for Financial Intermediaries.--
(1) In general.--No creditor, credit card issuer, financial
institution, operator of a terminal at which an electronic fund
transfer may be initiated, money transmitting business, or
national, regional, or local network utilized to effect a
credit transaction, electronic fund transfer, or money
transmitting service shall be liable under this section for the
involvement of such person, or the use of the facilities of
such person--
(A) in any credit transaction, electronic fund
transfer, or money transmitting service described in
subsection (a); or
(B) in drawing, paying, transferring, or collecting
any check, draft, or other instrument described in
Other Popular 106th Congressional Bills Documents:
|
| GovRecords.org presents information on various agencies of the United States Government. Even though all information is believed to be credible and accurate, no guarantees are made on the complete accuracy of our government records archive. Care should be taken to verify the information presented by responsible parties. Please see our reference page for congressional, presidential, and judicial branch contact information. GovRecords.org values visitor privacy. Please see the privacy page for more information. |
 |