Sec. 105. Qualified bodies
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/bill/113/hr/2282/ih/section-105A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Not later than 270 days after the date of the enactment of this Act, the Secretary shall designate as qualified bodies all State agencies, and regulatory bodies of Indian tribes, that submit applications under subparagraph
(B)and satisfy the criteria set forth under subparagraph (C). After the initial designations— the Secretary may at any time designate additional State agencies or regulatory bodies of Indian tribes as qualified bodies as deemed appropriate to carry out the goals of this Act, so long as they meet the criteria set forth under subparagraph (C); and notify each such agency or regulatory body of the determinations and designations made under subclause (I). Each State agency or regulatory body of an Indian tribe seeking to be designated as a qualified body under subparagraph
(A)shall submit to the Secretary an application therefor in such form and containing such information as the Secretary may require, which shall be submitted not later than 180 days after the date of the enactment of this Act for any such agency or body that seeks to be among those designated under subparagraph (A)(i). The Secretary shall prescribe strict threshold requirements for the designation of agencies or regulatory bodies as qualified bodies under this paragraph, including standards relating to the following: The size and qualification of staff of the qualified body to ensure the qualified body employs sufficient number of enforcement agents with experience in gaming regulatory enforcement areas to discharge its intended functions and has the sophistication and resources necessary to evaluate issues unique to the Internet environment. The length of time the qualified body has regulated other forms of gaming or e-commerce to ensure designations of only those regulatory bodies that have a history of demonstrated regulatory enforcement and oversight commensurate with the responsibilities imposed under this title. The qualified body’s experience and willingness to work with Federal authorities, including the Financial Crimes Enforcement Network. The capacity and experience of the qualified body in conducting rigorous suitability reviews under section 106. The adequacy of enforcement and regulatory authorities for the qualified body under the law of the applicable State or Indian tribe, including, at a minimum, requirements and authorities on the following: To investigate the suitability of each person required to be found suitable in connection with an application or license under this title. To require licensees to maintain appropriate procedures to ensure the compliance of licensees with the provisions of this title and the regulations prescribed thereunder. To examine any licensee and any books, papers, records, or other data of licensees and significant vendors relevant to any recordkeeping or reporting requirements imposed by the agency or regulatory body under this title. To summon a licensee, an applicant, a significant vendor, an officer or employee of a licensee, applicant, or significant vendor (including a former officer or employee), or any person having possession, custody, or care of the reports and records required by the agency or regulatory body as a qualified body under this title to appear before the agency or regulatory body at such time and place named in the summons, to produce such books, papers, records, or other data, and to give such testimony, under oath, as may be relevant or material to any investigation in connection with the enforcement o this title or any application for a license under this title. To enforce or direct enforcement of a summons in State or tribal court, as the case may be. To investigate any violation of a provision of this title, any applicable regulation prescribed under this title, and any other violation of applicable State or tribal law relating to the operation of an Internet gambling facility. To conduct continuing reviews of applicants, licensees, and significant vendors and the operation of Internet gambling facilities by use of technological means, on-site observation of facilities, including servers, or other reasonable means to assure compliance with the provisions of this title and any applicable regulation prescribed thereunder. To impose civil penalties for violations of this title and any applicable regulation prescribed thereunder or applicable order issued thereunder, including State or tribal law described under this subsection. To ensure that the hardware, software, and communications equipment, randomness, configuration, and network security of the Internet gambling facility are tested by an independent testing laboratory. To resolve disputes between licensees and the individuals participating in Internet gambling via the Internet gambling facilities of the licensees. Such other standards as the Secretary considers relevant to the ability of an agency or regulatory body to serve as an effective qualified body. Not later than 270 days after the date of the enactment of this Act, the Secretary shall designate the Office of Internet Gambling Oversight established under section 104(a) as a qualified body that may issue licenses to Internet gambling facility applicants and regulate the operation of Internet gambling facilities by any applicant who seeks to operate a licensed Internet gambling facility in the United States. Subparagraph
(A)shall not be construed to require any applicant seeking a license under this title and submitting an application under section 106(c)(1) to submit such application directly to the Office of Internet Gambling Oversight, rather than submitting such application to a State agency or regulatory body of an Indian tribe that has been designated by the Office of Internet Gambling Oversight as a qualified body. The Secretary may not approve an application from a State agency or regulatory body of an Indian tribe under paragraph
(1)if— the agency or regulatory body is located in a State or Indian lands that— has not opted in under section 108 and has not demonstrated an intent to opt in under such section; or has not opted in under such section and has demonstrated an intent to opt in under such section but has failed to opt in under such section during the 1-year period beginning on the date of the agency’s or regulatory body’s application; or the members of the agency or regulatory body are selected or controlled, directly or indirectly, by a person that has any ownership interest in an applicant, licensee, or significant vendor under this title or an Internet gambling facility, unless— such applicant or licensee is licensed by the Secretary; or such significant vendor is certified as suitable by the Secretary (and remains so certified at all times while providing services as a significant vendor to any licensee under this title). A non-controlling investment of a State, Indian tribe, or local government pension, retirement, annuity, or endowment fund shall not be considered an ownership interest for purposes of subparagraph (A)(ii). Beginning on the date that is 1 year after the date on which the Secretary prescribes final regulations under this title, the Secretary may, after providing at least 60 days notice to a qualified body of the Secretary’s intent to do so, withdraw the designation of a qualified body under this section if the Secretary determines that— the qualified body is not in compliance with the requirements of this title or regulations prescribed thereunder; or the qualified body is not in compliance with the conditions under which the qualified body was designated. The Secretary may provide a qualified body who receives notice under subparagraph
(A)with an opportunity to come into compliance as specified in that notice for a period of not more than 90 days. The Secretary may extend the period in clause
(i)by not more than 180 additional days if the qualified body has made substantial progress toward compliance as of the expiration of the first 90 day period. The Secretary may prohibit a qualified body that receives notice under subparagraph
(A)from issuing new licenses under this title until the Secretary determines that the qualified body is in compliance with the requirements of this title and regulations prescribed thereunder. A State agency or regulatory body of an Indian tribe that has had its designation as a qualified body withdrawn under subparagraph
(A)or
(B)may seek judicial review of such withdrawal under chapter 7 of title 5, United States Code. Not later than 30 days after the date on which the Secretary withdraws a designation of a State agency or regulatory body of an Indian tribe under paragraph (5), each person with a license issued by the agency or regulatory body shall— cease offering, accepting, and providing services with respect to bets or wagers from persons located in the United States under such license; and return all customer deposits of United States customers, or place those sums the return of which to United States customers is not feasible due to change in customer address, bank details, or similar difficulty in escrow in an account with a financial institution in the United States for safekeeping and orderly disposition by the Secretary; or apply for a new license from a different qualified body. If a person applies for a new license under clause
(ii)of subparagraph (A), the person may continue the activities described in clause (i)(I) of such subparagraph until final action is taken on the license application by the qualified body. Until final action is taken under subparagraph
(B)with respect to a person, the Secretary shall have enforcement and regulatory authority over the licensed activities of such person. The Secretary may delegate enforcement and regulatory authority under clause
(i)to such qualified body as the Secretary considers appropriate, with the consent of the qualified body. The Secretary may investigate and take such action as the Secretary considers appropriate with respect to any qualified body that appears, based upon the Secretary’s own inquiry or based upon credible information provided by other qualified bodies, applicants, licensees, or law enforcement officials, to be deficient or substantially less rigorous than other qualified bodies in the discharge of its responsibilities under this title.