I

104TH CONGRESS

1ST SESSION H. R. 462

To establish the Commission on the Review of National Policies Toward

Gambling.

IN THE HOUSE OF REPRESENTATIVES

JANUARY 11, 1995

Mr. LAFALCE introduced the following bill; which was referred to the Committee on the Judiciary, and in addition to the Committees on Resources and

Ways and Means, for a period to be subsequently determined by the

Speaker, in each case for consideration of such provisions as fall within

the jurisdiction of the committee concerned

A BILL

To establish the Commission on the Review of National

Policies Toward Gambling.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE; FINDINGS.

4 (a) SHORT TITLE.—This Act may be cited as the

5 ‘‘National Policies Toward Gambling Review Act of

6 1995’’.

7 (b) FINDINGS.—The Congress finds the following:
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1 (1) In 1976, the Commission on the Review of

2 the National Policy Toward Gambling issued its

3 final report to Congress. At the time of the report—

4 (A) casino gambling was legal in just 1

5 State, where it was a $1,000,000,000 a year in6 dustry;

7 (B) Indian tribal gambling did not exist;

8 (C) State lotteries existed in just 13

9 States; and

10 (D) the link between gambling and orga11 nized crime was the paramount concern of the

12 commission.

13 (2) The gambling industry has grown dramati14 cally in recent years as demonstrated by the follow15 ing:

16 (A) Casino gambling is legal in well over

17 20 States and referenda on legalization are

18 being considered in many other States.

19 (B) Casino gambling has become a

20 $30,000,000,000 a year industry.

21 (C) Indian tribal casino gambling accounts

22 for over 15 percent of all casino revenues.

23 (D) State lotteries exist in 36 States.

24 (E) Gambling in some form exists in all

25 but 2 States in the Union.
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1 (3) Implementation of the Indian Gaming Reg2 ulatory Act in 1988 created a competitive environ3 ment between Indian tribes and States to legalize

4 and develop casinos at a swift pace, as evidenced by

5 the current status of casino gambling among rec6 reational activities in the United States.

7 (4) Today, the paramount public policy concern

8 relative to gambling is the impact of the gambling

9 industry itself on communities, States, and the Na10 tion as a whole.

11 (5) Gambling brings with it certain externalities

12 that other industries do not bring. Specifically, the

13 proliferation of the gambling industry raises con14 cerns regarding—

15 (A) corresponding proliferation of gam16 bling addiction;

17 (B) proliferation in addiction-related crime;

18 (C) proliferation in cross addictions be19 tween gambling and alcohol and drugs;

20 (D) decreases in worker productivity at the

21 national level due to excessive gambling;

22 (E) a potentially adverse impact on the

23 health and viability of existing small businesses

24 in communities where gambling is legalized and
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1 in communities surrounding Indian reservations

2 where gambling exists;

3 (F) a competitive atmosphere developing

4 between States and Indian tribes, between

5 States and other States, and between States

6 and bordering countries, particularly Canada, to

7 attract the gambling dollar; and

8 (G) dramatic growth in the political influ9 ence of gambling advocates in city halls and

10 statehouses across the country, where govern11 ments must act as both regulator and profiteer

12 of gambling.

13 (6) There are variations and conflicts in the

14 regulatory structures controlling gambling nation15 wide, and in particular between Federal oversight

16 through the Indian Gaming Regulatory Act and

17 State laws.

18 (7) There is no adequate core or body of knowl19 edge at the national level on the impact of gambling

20 proliferation on the United States.

21 (8) Most of the economic impact studies of ca22 sino gambling have been sponsored by the gambling

23 industry.

24 (9) Little funding has been made available at

25 the State or Federal level for research into gambling
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1 addiction and the socioeconomic cost to the Nation

2 of gambling addiction.

3 (10) Policymakers at the local, State, and Fed4 eral levels are in need of sound information and data

5 on the social and economic impact of gambling pro6 liferation on the Nation.

7 SEC. 2. ESTABLISHMENT

8 There is established a commission to be known as the

9 ‘‘Commission on the Review of National Policies Toward

10 Gambling’’ (in this Act referred to as the ‘‘Commission’’).

11 SEC. 3 DUTIES.

12 (a) IN GENERAL.—The Commission shall conduct a

13 comprehensive legal and factual study of (1) gambling ac14 tivities in the United States, (2) the social and economic

15 impact of such gambling activities, and (3) existing Fed16 eral, State, and local policy and practices with respect to

17 legal prohibition and taxation of such gambling activities,

18 and in particular the relationship between the Indian

19 Gaming Regulatory Act and State and local laws. The

20 Commission shall formulate and propose such changes in

21 such policies and practices as the Commission may con22 sider appropriate.

23 (b) REQUIREMENTS.—The study to be conducted

24 under subsection (a) shall, at a minimum, include the fol25 lowing:
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1 (1) An examination of the impact of gambling

2 activities on communities nationwide and the Nation

3 as a whole in terms of—

4 (A) the economic well-being of existing

5 small businesses and jobs;

6 (B) the growth in gambling addiction;

7 (C) the socioeconomic impact of gambling

8 addiction; and

9 (D) the growth in gambling related crime

10 and gambling-addiction related crime, particu11 larly given the proliferation of casino gambling

12 in recent years.

13 (2) A review of the effectiveness of existing

14 practices in law enforcement, judicial administration,

15 and corrections in the United States and in foreign

16 legal jurisdictions for the enforcement of the prohibi17 tion and taxation of gambling activities, including

18 consideration of possible alternatives to such prac19 tices.

20 (3) A study of existing statutes of the United

21 States and State and local jurisdictions that prohibit

22 and tax gambling activities, including preparation of

23 such a proposal for codification, revision, or repeal

24 of such statutes as the Commission may determine

25 to be required to carry into effect such policy and
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1 practice changes as it may consider to necessary or

2 desirable.

3 SEC. 4. MEMBERSHIP.

4 (a) NUMBER AND APPOINTMENT.—The Commission

5 shall be composed of 15 members appointed not later than

6 90 days after the date of the enactment of this Act as

7 follows:

8 (1) Four individuals appointed jointly by the

9 President of the Senate and the minority leader of

10 the Senate.

11 (2) Four individuals appointed jointly by the

12 Speaker of the House of Representatives and the mi13 nority leader of the House of Representatives.

14 (3) Seven individuals appointed by the Presi15 dent of the United States.

16 (b) QUALIFICATIONS.—Members appointed pursuant

17 to subsection (a) shall be appointed from among individ18 uals who are not officers of the executive branch of the

19 Government or Members of Congress and who are spe20 cially qualified to serve on the Commission by virtue of

21 training and experience.

22 (c) CHAIRMAN.—The President of the United States

23 shall designate a Chairman from among the members of

24 the Commission.
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1 (d) QUORUM.—Eight members of the Commission

2 shall constitute a quorum.

3 (e) VACANCIES.—Any vacancy in the Commission

4 shall not affect the powers of the Commission but shall

5 be filled in the same manner in which the original appoint6 ment was made.

7 (f) BASIC PAY.—

8 (1) RATES OF PAY.—Except as provided in

9 paragraph (2), members of the Commission shall

10 each be entitled to receive $100.00 for each day (in11 cluding travel time) during which they are engaged

12 in the actual performance of duties vested in the

13 Commission.

14 (2) PROHIBITION OF COMPENSATION OF MEM15 BERS OF THE FEDERAL JUDICIARY.—Members of

16 the Commission who are members of the Federal ju17 diciary may not receive additional pay, allowances,

18 or benefits by reason of their service on the Commis19 sion.

20 (g) TRAVEL EXPENSES.—Each member of the Com21 mission shall receive travel expenses, including per diem

22 in lieu of subsistence, in accordance with sections 5702

23 and 5703 of title 5, United States Code.
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1 SEC. 5. STAFF.

2 (a) APPOINTMENTS.—Subject to such rules and regu3 lations as may be adopted by the Commission, the Chair4 man of the Commission shall have the power to appoint

5 and fix the compensation of a Director and such additional

6 staff personnel (but not to exceed 15 staff members) as

7 the Chairman considers necessary.

8 (b) APPLICABILITY OF CERTAIN CIVIL SERVICE

9 LAWS.—The Director and staff of the Commission may

10 be appointed without regard to the provisions of title 5,

11 United States Code, governing appointments in the com12 petitive service, and may be paid without regard to the

13 provisions of chapter 51 and subchapter III of chapter 53

14 of such title relating to classification and General Schedule

15 pay rates; except that an individual so appointed may not

16 receive pay in excess of the rate of basic pay payable for

17 level I of the Executive Schedule.

18 (c) QUALIFICATIONS.—In making appointments pur19 suant to this section, the Chairman of the Commission

20 shall include among the Chairman’s appointments individ21 uals determined by the Chairman to be competent social

22 scientists, lawyers, law enforcement officers, and others

23 with professional expertise in areas related to gambling.

24 SEC. 6. POWERS OF COMMISSION.

25 (a) HEARINGS AND SESSIONS.—The Commission

26 may, for the purpose of carrying out this Act, hold hear-
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1 ings, sit and act at times and places, take testimony, and

2 receive evidence as the Commission considers appropriate.

3 The Commission may administer oaths or affirmations to

4 witnesses appearing before it.

5 (b) POWERS OF MEMBERS AND AGENTS.—Any mem6 ber or agent of the Commission may, if authorized by the

7 Commission, take any action which the Commission is au8 thorized to take by this section.

9 (c) OBTAINING OFFICIAL DATA.—The Commission

10 may secure directly from any department or agency of the

11 United States information necessary to enable it to carry

12 out this Act. Upon request of the Chairperson of the Com13 mission, the head of that department or agency shall fur14 nish that information to the Commission.

15 (d) MAILS.—The Commission may use the United

16 States mails in the same manner and under the same con17 ditions as other departments and agencies of the United

18 States.

19 (e) ADMINISTRATIVE SUPPORT SERVICES.—Upon

20 the request of the Commission, the Administrator of Gen21 eral Services shall provide to the Commission, on a reim22 bursable basis, the administrative support services nec23 essary for the Commission to carry out its responsibilities

24 under this Act.

25 (f) SUBPOENA POWER.—
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1 (1) IN GENERAL.—The Commission may issue

2 subpoenas requiring the attendance and testimony of

3 witnesses and the production of any evidence relat4 ing to any matter which the Commission is empow5 ered to investigate by this Act. The attendance of

6 witnesses and the production of evidence may be re7 quired from any place within the United States at

8 any designated place of hearing within the United

9 States.

10 (2) FAILURE TO OBEY A SUBPOENA.—If a per11 son refuses to obey a subpoena issued under para12 graph (1), the Commission may apply to a United

13 States district court for an order requiring that per14 son to appear before the Commission to give testi15 mony, produce evidence, or both, relating to the

16 matter under investigation. The application may be

17 made within the judicial district where the hearing

18 is conducted or where that person is found, resides,

19 or transacts business. Any failure to obey the order

20 of the court may be punished by the court as civil

21 contempt.

22 (3) SERVICE OF SUBPOENAS.—The subpoenas

23 of the Commission shall be served in the manner

24 provided for subpoenas issued by a United States
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1 district court under the Federal Rules of Civil Pro2 cedure for the United States district courts.

3 (4) SERVICE OF PROCESS.—All process of any

4 court to which application is to be made under para5 graph (2) may be served in the judicial district in

6 which the person required to be served resides or

7 may be found.

8 (g) IMMUNITY.—The Commission is an agency of the

9 United States for the purpose of part V of title 18, United

10 States Code (relating to immunity of witnesses).

11 SEC. 7. REPORTS.

12 (a) INTERIM REPORTS.—The Commission may sub13 mit to the President of the United States and the Con14 gress interim reports as the Commission considers appro15 priate.

16 (b) FINAL REPORT.—The Commission shall transmit

17 a final report to the President of the United States and

18 the Congress not later than 2 years after the date of the

19 first meeting of the Commission. The final report shall

20 contain a detailed statement of the findings and conclu21 sions of the Commission.
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1 SEC. 8 TERMINATION.

2 The Commission shall terminate on the 60th day fol3 lowing submittal of the final report of the Commission

4 pursuant to section 7(b).

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