109 HR 5474 IH: To create a commission to study the proper response of U.S. House of Representatives 2006-05-24 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.

I 109th CONGRESS 2d Session H. R. 5474 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. Sánchez 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.

1.

Short title

This Act shall be known as the Internet Gambling Study Commission Act.

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primarily by State and tribal governments and Federal statutes governing the interstate placement of wagers are outdated.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.

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.

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.

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.

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.

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.

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.