Sec. 103. Department of Commerce qualification and oversight of Qualified Regulatory Authorities
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/bill/113/hr/2666/ih/section-103·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
The Secretary, in the case of a State, and the Commission, in the case of a federally recognized Indian tribe, shall have responsibility and authority for the following activities: Reviewing and qualifying regulatory authorities to issue licenses under this title. Exercising oversight over qualified regulatory authorities to ensure that such authorities— comply with the requirements of this title; and carry out their regulatory and enforcement functions under this title with appropriate diligence.
Investigating and taking appropriate remedial action with respect to any qualified regulatory authority. Prescribing such regulations as may be necessary to administer and enforce the provisions of this title. The Secretary shall establish an office in the Department of Commerce to be known as the Office of Internet Poker Oversight (in this subsection referred to as the office ) to exercise the functions of the Secretary set out in this title. The Secretary shall appoint a Director of the office from among individuals who have demonstrated experience and expertise in regulating gaming activities and may delegate to the Director any authority, duty, or responsibility conferred upon the Secretary by this title.
The Secretary, in the case of a State, or the Commission, in the case of a federally recognized Indian tribe, shall qualify any regulatory authority that is designated to the Secretary or the Commission by a State or federally recognized Indian tribe, respectively, that wishes to participate in the licensing program to carry out the licensing and other functions under this title if the Secretary, in the case of a State, or the Commission, in the case of a federally recognized Indian tribe, determines that such regulatory authority meets the minimum standards for qualification prescribed under paragraph (2).
The Secretary, in consultation with the National Indian Gaming Commission, shall prescribe minimum standards for qualifying a qualified regulatory authority under this subsection, including minimum standards— relating to the size and qualification of staff of the regulatory authority to ensure a sufficient number of enforcement agents with experience in gaming regulatory enforcement areas to discharge its intended functions and that the applicant have the sophistication and resources necessary to evaluate issues unique to the Internet environment; relating to the length of time the applicant has regulated other forms of gaming to ensure designations of only those applicants that have a history of demonstrated regulatory enforcement and oversight commensurate with the responsibilities imposed under this title; for assessing the applicant’s experience and willingness to work with Federal authorities, including the Financial Crimes Enforcement Network; prohibiting conflicts of interest to ensure that qualified regulatory authorities are not controlled, directly or indirectly, by persons that have any significant ownership interest in entities regulated under this title; for the capacity and experience of a qualified regulatory authority in conducting rigorous suitability reviews; for the enforcement and regulatory authorities provided to the applicant under the law of the applicable State or federally recognized Indian tribe, including investigative authority, authority to impose requirements on licensees, and authority to impose civil or other penalties; and the Secretary, in consultation with the Commission considers relevant to the ability of a regulatory authority to serve as an effective qualified regulatory authority.
Beginning on the date that is 1 year after the date on which the Secretary prescribes final regulations under this title, the Secretary, in the case of a State, or the Commission, in the case of a federally recognized Indian tribe, may, after providing 60 days notice to a qualified regulatory authority, withdraw the qualification of such regulatory authority under this section if the Secretary or Commission, respectively, determines that the regulatory authority is not in compliance with the minimum standards established under paragraph
(2)or other requirements of this title. The Secretary, in the case of a State, or the Commission, in the case of a federally recognized Indian tribe, may provide a qualified regulatory authority who receives notice under subparagraph
(A)with an opportunity to come into compliance for a period of not more than 180 days. The Secretary, in the case of a State, or the Commission, in the case of a federally recognized Indian tribe, may extend such period by not more than 180 additional days if the qualified regulatory authority has made substantial progress toward compliance as of the expiration of the first 180-day period. A qualified regulatory authority that receives notice under subparagraph
(A)may not issue any new licenses under this title until the Secretary, in the case of a State, or the Commission, in the case of a federally recognized Indian tribe, determines that the qualified regulatory authority is in compliance with the requirements of this title and regulations prescribed thereunder. A qualified regulatory authority that has had its qualification withdrawn under this paragraph may appeal to the United States District Court for the District of Columbia that such withdrawal was an abuse of discretion. Except as provided in subparagraph (B), not later than 30 days after the date on which the Secretary, in the case of a State, or the Commission, in the case of a federally recognized Indian tribe, withdraws the qualification of a qualified regulatory authority under paragraph (3), each person with a license issued by the qualified regulatory authority 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 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 regulatory authority. 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 regulatory authority. Until final action is taken under subparagraph
(B)with respect to a person, the Secretary, in the case of a State, or the Commission, in the case of a federally recognized Indian tribe, shall have enforcement and regulatory authority over the licensed activities of such person. The Secretary, in the case of a State, or the Commission, in the case of a federally recognized Indian tribe, may investigate and take such action as the Secretary considers appropriate with respect to any qualified regulatory authority that appears, based upon the Secretary’s or Commission’s own inquiry or based upon credible information provided by other persons, including licensees or law enforcement officials, to be deficient or substantially less rigorous than other qualified regulatory authorities in the discharge of its responsibilities under this title. In implementing this title, the Secretary and the Commission shall conduct meaningful consultation with federally recognized Indian tribes regarding all aspects of this title which affect federally recognized Indian tribes.