[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6870 Reported in House (RH)]






                                                 Union Calendar No. 585
110th CONGRESS
  2d Session
                                H. R. 6870

                          [Report No. 110-910]

To ensure that implementation of proposed regulations under subchapter 
 IV of chapter 53 of title 31, United States Code, does not cause harm 
            to the payments system, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 11, 2008

   Mr. Frank of Massachusetts (for himself and Mr. King of New York) 
 introduced the following bill; which was referred to the Committee on 
                           Financial Services

                            October 3, 2008

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]
    [For text of introduced bill, see copy of bill as introduced on 
                          September 11, 2008]

_______________________________________________________________________

                                 A BILL


 
To ensure that implementation of proposed regulations under subchapter 
 IV of chapter 53 of title 31, United States Code, does not cause harm 
            to the payments system, 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 ``Payments System Protection Act of 
2008''.

SEC. 2. PROHIBITION.

    (a) In General.--The Secretary of the Treasury and the Board of 
Governors of the Federal Reserve System, whether acting jointly or 
separately, may not propose, prescribe, or implement any regulation 
under subchapter IV of chapter 53 of title 31, United States Code, or 
otherwise give effect to such subchapter or any such regulation, 
including the proposed regulations published in the Federal Register on 
October 4, 2007, except to the extent as any such regulation pertains 
to unlawful Internet sports gambling or except as provided in section 
3.
    (b) Interim Final Regulations on Unlawful Internet Sports 
Gambling.--Before the end of the 60-day period beginning on the date of 
the enactment of this Act, the Secretary and the Board of Governors of 
the Federal Reserve System, in consultation with the Attorney General, 
shall jointly prescribe interim final regulations as required by 
subchapter IV of chapter 53 of title 31, United States Code, to the 
extent that such regulations pertain to unlawful Internet sports 
gambling.
    (c) Unlawful Internet Sports Gambling Defined.--
            (1) In general.--For purposes of this Act, the term 
        ``unlawful Internet sports gambling'' means bets or wagers 
        placed over the Internet on a lottery, sweepstakes, or other 
        betting, gambling, or wagering scheme based, directly or 
        indirectly (through the use of geographical references or 
        otherwise), on 1 or more competitive games in which amateur or 
        professional athletes participate, or are intended to 
        participate, or on 1 or more performances of such athletes in 
        such games.
            (2) Exception.--For purposes of paragraph (1), the term 
        ``competitive games in which amateur or professional athletes 
        participate'' does not include events described in section 3704 
        of title 28, United States Code (parimutuel animal racing or 
        jai-alai games).
    (d) Treasury List of Unlawful Internet Sports Gambling 
Businesses.--No regulations under subsection (a) to implement the 
requirements of section 5364 of title 31, United States Code, shall be 
effective unless such regulations--
            (1) require the Secretary of the Treasury to compile and 
        maintain a list of unlawful Internet sports gambling 
        businesses; and
            (2) do not require any person to block or refuse to honor 
        any transaction, or prohibit the acceptance of any product or 
        service of such person, other than in connection with a 
        business on the list maintained by the Secretary.

SEC. 3. RULEMAKING TO IMPLEMENT SUBCHAPTER ON PROHIBITION ON FUNDING OF 
              UNLAWFUL INTERNET GAMBLING AND DEFINE UNLAWFUL INTERNET 
              GAMBLING.

    (a) In General.--Notwithstanding section 2, the Secretary of the 
Treasury and the Board of Governors of the Federal Reserve System, in 
consultation with the Attorney General, shall jointly develop and 
implement regulations (which the Secretary and the Board jointly 
determine to be appropriate), on the record after opportunity for 
agency hearing involving an administrative law judge or similar 
official, under subchapter IV of chapter 53 of title 31, United States 
Code, that shall include a definition of the term ``unlawful Internet 
gambling'' for purposes of such subchapter and such regulations, after 
conducting a full economic impact study of the proposed regulations 
under chapter 6 of title 5, United States Code (commonly referred to as 
the ``Regulatory Flexibility Act'').
    (b) Treasury List of Unlawful Internet Gambling Businesses.--No 
regulations under subsection (a) to implement the requirements of 
section 5364 of title 31, United States Code, shall be effective unless 
such regulations--
            (1) require the Secretary of the Treasury to compile and 
        maintain a list of unlawful Internet gambling businesses; and
            (2) do not require any person to block or refuse to honor 
        any transaction, or prohibit the acceptance of any product or 
        service of such person, other than in connection with a 
        business on the list maintained by the Secretary.
    (c) Coordination With Prohibition.--Upon the effective date of 
final regulations under subsection (a), section 2 shall cease to apply.
                                                 Union Calendar No. 585

110th CONGRESS

  2d Session

                               H. R. 6870

                          [Report No. 110-910]

_______________________________________________________________________

                                 A BILL

To ensure that implementation of proposed regulations under subchapter 
 IV of chapter 53 of title 31, United States Code, does not cause harm 
            to the payments system, and for other purposes.

_______________________________________________________________________

                            October 3, 2008

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed