[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2572 Introduced in House (IH)]
107th CONGRESS
1st Session
H. R. 2572
To implement certain recommendations of the National Gambling Impact
Study Commission by prohibiting the placement of automated teller
machines or any device by which an extension of credit or an electronic
fund transfer may be initiated by a consumer in the immediate area in a
gambling establishment where gambling or wagering takes place.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
July 19, 2001
Mr. LaFalce introduced the following bill; which was referred to the
Committee on Financial Services
_______________________________________________________________________
A BILL
To implement certain recommendations of the National Gambling Impact
Study Commission by prohibiting the placement of automated teller
machines or any device by which an extension of credit or an electronic
fund transfer may be initiated by a consumer in the immediate area in a
gambling establishment where gambling or wagering takes place.
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 ``Gambling ATM and Credit/Debit Card
Reform Act''.
SEC. 2. IMPLEMENTATION OF THE NATIONAL GAMBLING IMPACT STUDY
COMMISSION'S RECOMMENDATIONS RELATING TO BANKING AND
CREDIT.
(a) Initiation of Electronic Fund Transfers in Gambling
Establishments.--The Electronic Fund Transfer Act (15 U.S.C. 1693 et
seq.) is amended--
(1) by redesignating sections 918, 919, 920, and 921 as
sections 919, 920, 921, and 922, respectively; and
(2) by inserting after section 917 the following new
section:
``SEC. 918. PLACEMENT OF ELECTRONIC TERMINALS IN GAMBLING
ESTABLISHMENTS.
``(a) In General.--No person may place, or cause to be placed, an
electronic terminal in the immediate area of a gambling establishment
where any form of wager or bet is made or accepted, any game of chance
is played, any gambling device is used, or any other form of gambling
is carried on.
``(b) Regulations.--
``(1) In general.--The Board shall prescribe such
regulations as the Board may consider to be appropriate to
ensure that the initation of electronic fund transfers by
consumers is kept, to the extent practicable, physically
segregated from any activity described in subsection (a).
``(2) Separate setting.--Such regulations shall include a
clear delineation of the setting in which, and the
circumstances under which, any use of an electronic terminal or
credit card referred to in paragraph (1) should be conducted in
a location physically segregated from an area where any
activity described in subsection (a) is routinely carried on.
``(c) Liability.--For purposes of section 915, a failure to comply
with the requirements of subsection (a) with regard to any electronic
terminal shall be considered a failure to comply with a provision of
this title with respect to any consumer who initiates an electronic
fund transfer at such terminal while such violation continues.
``(d) Definitions.--For purposes of this section, the following
definitions shall apply:
``(1) Gambling device.--The term `gambling device' has the
meaning given to such term in section 41311(b) of title 49,
United States Code.
``(2) Gambling establishment.--The term `gambling
establishment' has the meaning given to such term in section
1081 of title 18, United States Code.''.
(b) Use of Credit Cards To Initiate Extensions of Credit in
Gambling Establishments.--
(1) In general.--Chapter 2 of the Truth in Lending Act (15
U.S.C. 1631 et seq.) is amended by adding at the end the
following new section:
``SEC. 140. PROHIBITION ON INITIATION OF EXTENSIONS OF CREDIT IN
CERTAIN GAMBLING AREAS WITHIN GAMBLING ESTABLISHMENTS.
``(a) In General.--No person may--
``(1) place, or cause to be placed, an electronic terminal;
or
``(2) otherwise accept the use of a credit card by a
consumer to initiate a consumer credit transaction to pay for
money, property, or services obtained by the consumer,
in the immediate area of a gambling establishment where any form of
wager or bet is made or accepted, any game of chance is played, any
gambling device is used, or any other form of gambling is carried on.
``(b) Regulations.--
``(1) In general.--The Board shall prescribe such
regulations as the Board may consider to be appropriate to
ensure that the use of an electronic terminal or the use of a
credit card to initiate a consumer credit transaction to pay for money,
property, or services obtained by a consumer is kept, to the extent
practicable, physically segregated from any activity described in
subsection (a).
``(2) Separate setting.--Such regulations shall include a
clear delineation of the setting in which, and the
circumstances under which, any use of an electronic terminal or
credit card referred to in paragraph (1) should be conducted in
a location physically segregated from an area where any
activity described in subsection (a) is routinely carried on.
``(c) Civil Liability.--
``(1) In general.--Any person who fails to comply with any
provision of this title with respect to any electronic terminal
or the acceptance of a credit card to initiate a consumer
credit transaction at a place in a gambling establishment that
constitutes a violation shall be liable to any consumer who
uses the electronic terminal or provides a credit card at such
place in an amount equal to the sum of the amounts determined
under each of the following subparagraphs:
``(A) Actual damages.--The greater of--
``(i) the amount of any actual damage
sustained by the consumer as a result of such
failure; or
``(ii) any amount paid, directly or with
the proceeds of the credit transaction, by the
consumer to such person.
``(B) Punitive damages.--
``(i) Individual actions.--In the case of
any action by an individual, such additional
amount as the court may allow.
``(ii) Class actions.--In the case of a
class action, the sum of--
``(I) the aggregate of the amount
which the court may allow for each
named plaintiff; and
``(II) the aggregate of the amount
which the court may allow for each
other class member, without regard to
any minimum individual recovery.
``(C) Attorneys' fees.--In the case of any
successful action to enforce any liability under
subparagraph (A) or (B), the costs of the action,
together with reasonable attorneys' fees.
``(2) Factors to be considered in awarding punitive
damages.--In determining the amount of any liability of any
person under paragraph (1)(B), the court shall consider, among
other relevant factors--
``(A) the frequency and persistence of
noncompliance by such person;
``(B) the nature of the noncompliance;
``(C) the extent to which such noncompliance was
intentional; and
``(D) in the case of any class action, the number
of consumers adversely affected.
``(d) Definitions.--For purposes of this section, the following
definitions shall apply:
``(1) Electronic terminal.--The term `electronic
terminal'--
``(A) means an electronic device, other than a
telephone operated by a consumer, through which a
consumer may initiate a consumer credit transaction in
payment for any money, property, or services obtained
by the consumer; and
``(B) includes point-of-sale terminals, automated
teller machines, and cash dispensing machines
``(2) Gambling device.--The term `gambling device' has the
meaning given to such term in section 41311(b) of title 49,
United States Code.
``(3) Gambling establishment.--The term `gambling
establishment' has the meaning given to such term in section
1081 of title 18, United States Code.''.
(2) Clerical amendment.--The table of sections for chapter
2 of the Truth in Lending Act is amended by inserting after the
item relating to section 139 the following new item:
``140. Prohibition on initiation of extensions of credit in certain
gambling areas within gambling
establishments.''.
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