Sec. 105. Enforcement
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/bill/114/hr/2888/ih/section-105·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
A licensee may be subject to disciplinary action, including suspension or revocation of its license, by a qualified regulatory authority that issued a license to the licensee or by the Secretary if the licensee fails to comply with any provision of this title, any regulation prescribed thereunder, or any other applicable provision of State or tribal law. Only the Secretary or the qualified regulatory authority which granted the license may initiate disciplinary action under this title.
Nothing in this subsection shall be construed to prohibit a law enforcement authority or regulatory body that has authority over a licensee or an affiliated person, independent from this title, from taking action under the law of that law enforcement authority or regulatory body. A qualified regulatory authority shall commence disciplinary action under this subsection against a licensee upon service of a formal written complaint upon the licensee, with a copy forwarded to the Secretary, that sets forth the grounds for the disciplinary action and the proposed penalty that is being sought, which may include any or all of the imposition of a fine as provided pursuant to subsection (m)(1) or limitation, condition, suspension, or revocation of the license.
The disciplinary process shall proceed according to the law of the jurisdiction of the applicable qualified regulatory authority. Any disciplinary action shall be treated as a final action. A licensee aggrieved by disciplinary action by a qualified regulatory authority may file an appeal in the jurisdiction where the qualified regulatory authority taking such action is located only to the extent permitted by the law of such jurisdiction. A licensee aggrieved by disciplinary action by the Secretary may file an appeal in the United States District Court for the District of Columbia.
Such court shall set aside the action if it determines that the action was— arbitrary, capricious, an abuse of discretion, or otherwise not consistent with law; or without observance of procedure required by law. During the period in which a suspension or revocation of an existing license is being challenged through a pending judicial proceeding, the court handling the challenge may allow the licensee to continue offering bets and wagers in full compliance with the terms of its existing license and any other conditions the court considers necessary, if the court determines that— the appellant has a reasonable likelihood of success on the merits; and allowing the appellant to continue offering bets and wagers while the appeal is pending will not threaten the public interest.
If a licensee’s license is revoked and no appeal pursuant to paragraph
(5)is pending, the licensee shall— return all customer funds in an orderly manner not later than 30 days after the date of the revocation of the license; or place in escrow those sums return of which to United States customers is not feasible due to change in customer address, bank details, or similar difficulty, in an account with a financial institution in the United States for safekeeping and orderly disposition by the Secretary. If, in the course of carrying out the provisions of this title, the Secretary or a qualified regulatory authority finds a substantial basis to believe that a person has violated section 103, the Secretary or qualified regulatory authority shall refer such matter to the Attorney General. A qualified regulatory authority may assess upon any licensee or other person subject to the requirements of this title for each violation of this title or any regulation prescribed or order issued under this title, a civil penalty of not more than the greater of— the amount involved in the violation, if any; $250,000 for an individual and $750,000 for a corporation; or such other amount as provided under the applicable State or tribal law of the qualified regulatory authority. The Secretary may assess upon any licensee or other person subject to the requirements of this title for each violation of this title or any regulation prescribed or order issued under this title, a civil penalty of not more than the greater of— the amount involved in the violation, if any; or $250,000 for an individual and $750,000 for a corporation. The penalties authorized under subparagraphs
(A)and
(B)shall not be cumulative and only one such penalty may be assessed per violation. Clause
(i)shall not be construed to limit the authority of a qualifying body or the Secretary, as the case may be, to pursue a civil penalty for each violation of a related series of violations. Notwithstanding any other provision of law, the Secretary may assess upon a person that is required to obtain a license under this title, but fails to obtain a license under this title, a civil penalty of not more than the greater of— the amount of bets or wagers taken by the person from players in the United States during the period that a license was needed but not held by the person; or $1,000,000 per day that the person accepts bets or wagers from players in the United States during the period that a license was needed but not held by the person. Nothing in this paragraph shall be construed to affect the ability of a law enforcement official to seek criminal penalties against a person. Qualified regulatory authorities and such other entities as are authorized by applicable State and tribal law shall enforce the provisions of this title under the law of the applicable State or federally recognized Indian tribe, and penalties shall be determined, reviewable, collectable, and disposed of as provided under such law. Any penalty imposed under paragraph (1)(B) shall be assessed and collected by the Secretary by written notice. If, with respect to any assessment under paragraph (1)(B), a hearing is not requested pursuant to clause
(v)within the period of time allowed under such clause, the assessment shall constitute a final agency order. The Secretary may compromise, modify, or remit any penalty which the Secretary may assess or has already assessed under paragraph (1)(B). In determining the amount of any penalty imposed under paragraph (1)(B), the Secretary shall take into account the appropriateness of the penalty with respect to the following: The size of the financial resources and the good faith of the person against whom the penalty is assessed. The gravity of the violation. The history of previous violations. Such other matters as justice may require. The person against whom any penalty is assessed under paragraph (1)(B) shall be afforded an agency hearing if such person submits a request for such hearing not later than 20 days after the date of the issuance of the notice of assessment. If any person fails to pay an assessment after any penalty assessed under this subparagraph has become final, the Secretary shall recover the amount assessed by action in the appropriate United States district court. In any civil action under subclause (I), the validity and appropriateness of the penalty shall be subject to review for abuse of agency discretion. All penalties collected under authority of paragraph (1)(B) shall be deposited into the Treasury of the United States. Payment by a licensee of any civil penalty assessed under this subsection that has become final shall be a requirement for the retention of its license.