110 HR 6870 RH: Payments System Protection Act of U.S. House of Representatives 2008-09-11 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.

IB Union Calendar No. 585 110th CONGRESS 2d Session H. R. 6870 [Report No. 110–910] 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.

1.

Short title

This Act may be cited as the Payments System Protection Act of 2008.

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.

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.

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