[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5474 Introduced in House (IH)]








109th CONGRESS
  2d Session
                                H. R. 5474

   To create a commission to study the proper response of the United 
               States to the growth of Internet gambling.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 24, 2006

 Mr. Porter (for himself, Mr. Gibbons, Ms. Berkley, Mr. LoBiondo, Mr. 
 Weiner, Mr. Jackson of Illinois, Mr. Davis of Illinois, Mr. Cardoza, 
  Mr. Ruppersberger, Mr. Clyburn, Mr. Capuano, Ms. Watson, Ms. Eddie 
   Bernice Johnson of Texas, Ms. Linda T. Sanchez of California, Ms. 
  Corrine Brown of Florida, Mr. Conyers, Mr. Rangel, Mr. Hastings of 
 Florida, Mr. Frank of Massachusetts, Mr. Hinchey, Mrs. Jones of Ohio, 
 Mr. Clay, Mrs. Napolitano, Mr. Thompson of Mississippi, Mr. Serrano, 
 Mr. Crowley, Mr. Engel, Mr. Taylor of Mississippi, Mr. Langevin, Mr. 
  Emanuel, Mr. Melancon, Mr. Lewis of Georgia, Mr. Towns, Ms. Loretta 
   Sanchez of California, Mr. Israel, Mr. Gonzalez, Mr. Berman, Mrs. 
Maloney, Mr. Thompson of California, Mr. Costello, Ms. Schakowsky, Mr. 
  Ackerman, Mr. Wexler, and Ms. Jackson-Lee of Texas) introduced the 
  following bill; which was referred to the Committee on the Judiciary

_______________________________________________________________________

                                 A BILL


 
   To create a commission to study the proper response of the United 
               States to the growth of Internet gambling.

    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 Study Commission 
Act''.

SEC. 2. FINDINGS AND PURPOSE.

    (a) Findings.--The Congress finds as follows:
            (1) Gambling is regulated primarily by State and tribal 
        governments and Federal statutes governing the interstate 
        placement of wagers are outdated.
            (2) Over the past decade, the number of Americans gambling 
        on the Internet has risen dramatically to several million, 
        accounting for over half of a multibillion dollar worldwide 
        market.
            (3) Many observers believe that it is impossible to stop 
        the sale of most products or services over the Internet.
            (4) Congress must avoid merely symbolic, ineffective 
        responses to the growth of Internet gambling, and should 
        instead focus on establishing safeguards against gambling by 
        minors, compulsive gambling, and fraud, money laundering, and 
        other forms of abuse.
            (5) Although interpretations of a recent ruling of the 
        World Trade Organization's appellate body differ, legal experts 
        agree that it calls into question whether certain of Federal 
        and State gambling laws violate the commitments of the United 
        States under the General Agreement on Trade and Services.
            (6) While only the United States and Antigua are parties to 
        that dispute, the ruling could have ramifications for 
        interested nations from the United Kingdom to Australia.
    (b) Purpose.--The purpose of this Act is provide for a detailed 
examination of the issues posed by the continued spread and growth of 
interstate commerce with respect to Internet gambling through the 
establishment of a commission for such purpose.

SEC. 3. INTERNET GAMBLING STUDY COMMISSION.

    (a) Establishment of Commission.--There is established a commission 
to be known as the Internet Gambling Study Commission (hereinafter in 
this Act referred to as the ``Commission'').
    (b) Membership.--
            (1) Appointment.--The Commission shall consist of 9 members 
        appointed as follows:
                    (A) 2 shall be appointed by the Speaker of the 
                House of Representatives.
                    (B) 2 shall be appointed by the minority leader of 
                the House of Representatives.
                    (C) 2 shall be appointed by the majority leader of 
                the Senate.
                    (D) 2 shall be appointed by the minority leader of 
                the Senate.
                    (E) 1 shall be appointed by consensus by the 8 
                commissioners appointed in accordance with 
                subparagraphs (A), (B), (C), and (D).
            (2) Term.--Commissioners shall be appointed for the life of 
        the Commission.
            (3) Eligibility for membership.--The members of the 
        Commission--
                    (A) shall be appointed from among individuals who, 
                by virtue of their education, training, or experience 
                in matters to be studied by the Commission under 
                section 4 are especially qualified to serve on the 
                Commission; and
                    (B) 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.
            (4) Consultation and timely appointment 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--
                    (A) 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; and
                    (B) each make their respective appointments not 
                later than 60 days after the date of enactment of this 
                Act.
            (5) Vacancy.--Any vacancy in the position of any 
        Commissioner shall be filled in the same manner in which the 
        original appointment was made and shall not affect the powers 
        of the Commission
    (c) Chairperson.--The member of the Commission appointed under 
subsection (b)(1)(E) shall serve as the Chairperson of the Commission.
    (d) Administration.--
            (1) Meetings.--
                    (A) In general.--The Commission shall meet at the 
                call of the Chairperson.
                    (B) Initial meeting.--The initial meeting of the 
                Commission shall be conducted before the end of the 
                later of--
                            (i) the 30-day period beginning on the date 
                        of the appointment of the last member of the 
                        Commission; or
                            (ii) the 30-day period beginning on the 
                        date on which appropriated funds become 
                        available for the Commission.
            (2) Quorum.--A majority of the members of the Commission 
        shall constitute a quorum to conduct business, but the 
        Commission may establish a lesser number for conducting 
        hearings scheduled by the Commission.
            (3) Voting.--Each member of the Commission shall have 1 
        vote, and the vote of each member shall be accorded the same 
        weight.
            (4) Rules.--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.
    (e) Compensation.--
            (1) In general.--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.
            (2) Prohibition of compensation of federal employees.--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.
    (f) 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.

SEC. 4. DUTIES OF THE COMMISSION.

    (a) Study Required.--
            (1) In general.--It shall be the duty of the Commission to 
        conduct a comprehensive study of Internet gambling, including 
        the existing legal framework that governs such activities and 
        transactions.
            (2) Issues to be considered.--The study conducted under 
        paragraph (1) shall include a review and consideration by the 
        Commission of the following issues:
                    (A) Existing Federal, State, tribal, local, and 
                international laws governing various forms of wagering 
                over the Internet, the effectiveness of such laws, and 
                the extent to which such provisions of law conform or 
                do not conform with each other.
                    (B) The rate and extent of the expansion of 
                Internet gambling, including an analysis of the 
                availability and use within the United States of such 
                form of gambling.
                    (C) The impact of Internet gambling on the 
                availability of gambling to minors.
                    (D) The impact of Internet gambling on addicted or 
                otherwise irresponsible gamblers.
                    (E) The susceptibility of Internet gambling to 
                fraud and money laundering by terrorist or criminal 
                enterprises and the extent to which such entities are 
                utilizing Internet gambling sites for these purposes.
                    (F) An assessment of whether there are potential 
                regulatory measures that may reduce the adverse impacts 
                of Internet gambling identified in subparagraphs (C), 
                (D), and (E), including a survey of recent 
                technological innovations and the practices of other 
                nations and international bodies that are designed to 
                limit such adverse impacts.
                    (G) An evaluation of the use of credit, credit 
                cards, electronic fund transfers, bank instruments, and 
                other payment providers to fund Internet gambling and 
                an assessment of the potential, if any, for regulating 
                of such financing methods as a means for reducing the 
                adverse impacts of Internet gambling identified in 
                subparagraphs (C), (D), and (E).
                    (H) An analysis of the issues of the relationships 
                of Federal, State, and tribal laws that are presented 
                by legislative and administrative proposals designed to 
                address the proliferation of Internet gambling and the 
                potential means of reconciling State-based legal and 
                regulatory frameworks with the primarily interstate and 
                international character of the Internet as a medium.
                    (I) An assessment of the problems posed by 
                unregulated international Internet gambling to United 
                States interests and the potential means, if any, by 
                which the Federal Government may seek international 
                cooperation in addressing these concerns.
    (b) Final Report.--Before the end of the 18-month period beginning 
on the date the Commission first meets with a quorum present, the 
Commission shall--
            (1) submit to the President and the Congress a 
        comprehensive report containing the findings and conclusions of 
        the Commission with regard to the study conducted under 
        subsection (a), together with such recommendations, if any, for 
        legislative or administrative action as the Commission may 
        determine to be appropriate and advisable, on the basis of such 
        findings and conclusions, to provide a sound response to 
        Internet gambling in the United States; and
            (2) transmit a copy of such report to the Governor or chief 
        executive officer of each State and Native American tribal 
        government.

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 this Act.
            (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, 
        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 from any place withing the United States that the 
        Commission determines is necessary to carry out this Act.
            (2) Notice to attorney general.--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.
            (3) 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.
            (4) Certification.--Each person who submits materials or 
        information to the Commission pursuant to a subpoena issued 
        under this subsection shall certify, subject to the provisions 
        of section 1001 of title 18, United States Code, to the 
        Commission the authenticity and completeness of all materials 
        or information submitted.
            (5) No liability for expenses.--The United States shall not 
        be liable for any expense, other than any witness appearance 
        fee described in subsection (a)(2), incurred in connection with 
        the production of books, papers, records, or other data under 
        this subsection.
            (6) Service of process.--Service of any subpoena issued 
        under this subsection may be by registered mail or in such 
        other manner calculated to give actual notice as the Commission 
        may prescribe by regulation.
            (7) Contumacy or refusal.--
                    (A) Referral to attorney general.--In case of 
                contumacy by a person issued a subpoena under this 
                subsection or a refusal by such person to obey such 
                subpoena, the Commission shall refer the matter to the 
                Attorney General.
                    (B) Jurisdiction of court.--To compel compliance 
                with a subpoena issued under this subsection, the 
                Attorney General may invoke the aid of any court of the 
                United States within the jurisdiction of which--
                            (i) the person required to produce the 
                        documents or answer an interrogatory is an 
                        inhabitant; or
                            (ii) the person required to produce 
                        documents or answer an interrogatory carries on 
                        business or may be found.
                    (C) Court order.--The court may issue an order 
                requiring the person summoned to produce books, papers, 
                records, and other data or to answer an interrogatory, 
                and to pay the costs of the proceeding.
                    (D) Failure to comply with order.--Any failure to 
                obey the order of the court may be punished by the 
                court as a contempt thereof.
    (c) Information From Federal Agencies.--
            (1) In general.--The Commission may secure directly from 
        any Federal department or agency such information as the 
        Commission considers necessary to carry out its duties under 
        this Act.
            (2) Request to head of department or agency.--Upon the 
        request of the Commission, the head of such department or 
        agency may furnish such information to the Commission.
    (d) Administrative Support.--Upon the request of the Commission, 
the Administrator of General Services shall provide to the Commission, 
on a reimbursable basis, the administrative support services necessary 
for the Commission to carry out its responsibilities under this Act.
    (e) Contract Authority.--To the extent or in the amounts provided 
in advance in appropriation Acts, the Commission may contract with and 
compensate government and private agencies or persons for research 
contracts under section 7 and other services, without regard to section 
3709 of the Revised Statutes.
    (f) Mails.--The Commission may use the United States mails in the 
same manner and under the same conditions as other departments and 
agencies of the United States.
    (g) Confidentiality.--
            (1) Treatment of commission.--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 this Act shall be 
        considered an employee of the Commission for the purposes of 
        section 1905 of title 18, United States Code.
            (2) Nondisclosure.--Information obtained by the Commission, 
        other than information available to the public, shall not be 
        disclosed to any person in any manner, except--
                    (A) to any Commission employee or any employee of 
                any person under contract to the Commission for the 
                purpose of receiving, reviewing, or processing such 
                information;
                    (B) upon a lawful of any court of competent 
                jurisdiction; or
                    (C) when publicly released by the Commission, in an 
                aggregate or summary form that does not directly or 
                indirectly disclose--
                            (i) the identity of any person; or
                            (ii) any information which could not be 
                        released under section 1905 of title 18, United 
                        States Code.

SEC. 6. STAFF OF COMMISSION; EXPERTS AND CONSULTANTS.

    (a) Director.--The Chairman of the Commission may appoint an 
Executive Director for the Commission, subject to the confirmation of a 
majority of the members of the Commission.
    (b) Staff.--Subject to rules prescribed by the Commission, the 
Chairperson may appoint and fix the pay of such additional personnel as 
the Chairperson considers appropriate.
    (c) Applicability of Certain Civil Service Laws.--The Director and 
staff of the Commission may be appointed without regard to the 
provisions of title 5, United States Code, governing appointments in 
the competitive service, and may be paid without regard to the 
provisions of chapter 51 and subchapter III of chapter 53 of that title 
relating to classification and General Schedule pay rates, except that 
an individual so appointed may not receive pay in excess of the annual 
rate of basic pay for level V of the Executive Schedule under section 
5316 of such title.
    (d) Experts and Consultants.--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 the requirements of 
        section 4, the Commission shall seek to 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), (F), (H), and (I) of paragraph (2) of such 
                section.
            (2) Report.--Any contract entered into under paragraph (1) 
        shall require the Advisory Commission on Intergovernmental 
        Relations to submit a report to the Commission detailing the 
        results of the Advisory Commission's efforts under the contract 
        not later than 12 months after the date upon which the 
        Commission first meets with a quorum present.
    (b) National Research Council.--
            (1) In general.--In carrying out the requirements of 
        section 4, the Commission shall seek to 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.--Any contract entered into under paragraph (1) 
        shall require the National Research Council of the National 
        Academy of Sciences to submit a report to the Commission 
        detailing the results of the Council's efforts under the 
        contract not later than 12 months after the date upon which the 
        Commission first meets with a quorum present.
    (c) Other Organizations.--No provision of this Act shall be 
construed as limiting the authority of the Commission to enter into 
contracts with any other person for research necessary to carry out the 
Commission's duties under this Act.

SEC. 8. TERMINATION.

    The Commission shall cease to exist at the end of the 60-day period 
beginning on the date the final report under section 4(b) is submitted 
to the President and the Congress.
                                 <all>