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F:\JMW\FS110\HR6870\MANAGER_001.XML [Discussion Draft] SEPTEMBER 15, 2008 AMENDMENT IN THE TO NATURE OF A SUBSTITUTE H.R. 6870 Ml. llllll OFFERED BY Strike all after the enacting clause and insert the following: 1 2 SECTION 1. SHORT TITLE. This Act may be cited as the ‘‘Payments System Pro- 3 tection Act of 2008’’. 4 5 SEC. 2. PROHIBITION. (a) IN GENERAL.—The Secretary of the Treasury 6 and the Board of Governors of the Federal Reserve Sys7 tem, whether acting jointly or separately, may not pro8 pose, prescribe, or implement any regulation under sub9 chapter IV of chapter 53 of title 31, United States Code, 10 or otherwise give effect to such subchapter or any such 11 regulation, including the proposed regulations published in 12 the Federal Register on October 4, 2007, except to the 13 extent as any such regulation pertains to unlawful Inter14 net sports gambling or except as provided in section 3. 15 (b) INTERIM FINAL REGULATIONS ON UNLAWFUL 16 INTERNET SPORTS GAMBLING.—Before the end of the 60f:\V10\091508\091508.218.xml September 15, 2008 (4:18 p.m.) VerDate 0ct 09 2002 16:18 Sep 15, 2008 Jkt 000000 (413783|1) PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 C:\TEMP\MANAGE~1.XML HOLCPC F:\JMW\FS110\HR6870\MANAGER_001.XML 2 1 day period beginning on the date of the enactment of this 2 Act, the Secretary and the Board of Governors of the Fed3 eral Reserve System, in consultation with the Attorney 4 General, shall jointly prescribe interim final regulations as 5 required by subchapter IV of chapter 53 of title 31, United 6 States Code, to the extent that such regulations pertain 7 to unlawful Internet sports gambling. 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 (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). f:\V10\091508\091508.218.xml September 15, 2008 (4:18 p.m.) VerDate 0ct 09 2002 16:18 Sep 15, 2008 Jkt 000000 (413783|1) PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 C:\TEMP\MANAGE~1.XML HOLCPC F:\JMW\FS110\HR6870\MANAGER_001.XML 3 1 2 (d) TREASURY LIST BLING OF UNLAWFUL INTERNET GAM- BUSINESSES.—No regulations under subsection (a) 3 to implement the requirements of section 5364 of title 31, 4 United States Code, shall be effective unless such regula5 tions— 6 7 8 9 10 11 12 13 14 15 16 17 18 (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. 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 19 Secretary of the Treasury and the Board of Governors of 20 the Federal Reserve System, in consultation with the At21 torney General, shall jointly develop and implement regu22 lations (which the Secretary and the Board jointly deter23 mine to be appropriate), on the record after opportunity 24 for agency hearing involving an administrative law judge 25 or similar official, under subchapter IV of chapter 53 of f:\V10\091508\091508.218.xml September 15, 2008 (4:18 p.m.) VerDate 0ct 09 2002 16:18 Sep 15, 2008 Jkt 000000 (413783|1) PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 C:\TEMP\MANAGE~1.XML HOLCPC F:\JMW\FS110\HR6870\MANAGER_001.XML 4 1 title 31, United States Code, that shall include a definition 2 of the term ‘‘unlawful Internet gambling’’ for purposes of 3 such subchapter and such regulations, after conducting a 4 full economic impact study of the proposed regulations 5 under chapter 6 of title 5, United States Code (commonly 6 referred to as the ‘‘Regulatory Flexibility Act’’). 7 8 (b) TREASURY LIST BLING OF UNLAWFUL INTERNET GAM- BUSINESSES.—No regulations under subsection (a) 9 to implement the requirements of section 5364 of title 31, 10 United States Code, shall be effective unless such regula11 tions— 12 13 14 15 16 17 18 19 20 (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 21 effective date of final regulations under subsection (a), 22 section 2 shall cease to apply. ◊ f:\V10\091508\091508.218.xml September 15, 2008 (4:18 p.m.) VerDate 0ct 09 2002 16:18 Sep 15, 2008 Jkt 000000 (413783|1) PO 00000 Frm 00004 Fmt 6652 Sfmt 6301 C:\TEMP\MANAGE~1.XML HOLCPC