I
106TH CONGRESS
1ST SESSION
H. R. 2811
To implement certain recommendations of the National Gambling Commission
by prohibiting the placement of automated teller machines or any device
by which an extension of credit or an electronic fund transfer may
be initiated by a consumer in the immediate area in a gambling establish-
ment where gambling or wagering takes place.
IN THE HOUSE OF REPRESENTATIVES
SEPTEMBER 8, 1999
Mr. LAFALCE introduced the following bill; which was referred to the
Committee on Banking and Financial Services
A BILL
To implement certain recommendations of the National Gam-
bling Commission by prohibiting the placement of auto-
mated teller machines or any device by which an exten-
sion of credit or an electronic fund transfer may be
initiated by a consumer in the immediate area in a
gambling establishment where gambling or wagering
takes place.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Gambling ATM and
Credit/Debit Card Reform Act’’.
SEC. 2. IMPLEMENTATION OF THE NATIONAL GAMBLING
COMMISSION’S RECOMMENDATIONS RELAT-
ING TO BANKING AND CREDIT.
(a) INITIATION OF ELECTRONIC FUND TRANSFERS
IN GAMBLING ESTABLISHMENTS.—The Electronic Fund
Transfer Act (15 U.S.C. 1693 et seq.) is amended—
(1) by redesignating sections 918, 919, 920,
and 921 as sections 919, 920, 921, and 922, respec-
tively; and
(2) by inserting after section 917 the following
new section:
‘‘SEC. 918. PLACEMENT OF ELECTRONIC TERMINALS IN
GAMBLING ESTABLISHMENTS.
‘‘(a) IN GENERAL.—No person may place, or cause
to be placed, an electronic terminal in the immediate area
of a gambling establishment where any form of wager or
bet is made or accepted, any game of chance is played,
any gambling device is used, or any other form of gam-
bling is carried on.
‘‘(b) REGULATIONS.—
‘‘(1) IN GENERAL.—The Board shall prescribe
such regulations as the Board may consider to be
appropriate to ensure that the initiation of electronic
fund transfers by consumers is kept, to the extent
practicable, physically segregated from any activity
described in subsection (a).
‘‘(2) SEPARATE
SETTING.—Such regulations
shall include a clear delineation of the setting in
which, and the circumstances under which, electronic
fund transfers should be conducted in a location
physically segregated from an area where any activ-
ity described in subsection (a) is routinely carried
on.
‘‘(c) LIABILITY.—For purposes of section 915, a fail-
ure to comply with the requirements of subsection (a) with
regard to any electronic terminal shall be considered a fail-
ure to comply with a provision of this title with respect
to any consumer who initiates an electronic fund transfer
at such terminal while such violation continues.
‘‘(d) DEFINITIONS.—For purposes of this section, the
following definitions shall apply:
‘‘(1) GAMBLING DEVICE.—The term ‘gambling
device’ has the meaning given to such term in sec-
tion 41311(b) of title 49, United States Code.
‘‘(2) GAMBLING
ESTABLISHMENT.—The term
‘gambling establishment’ has the meaning given to
such term in section 1081 of title 18, United States
Code.’’.
(b) USE OF CREDIT CARDS TO INITIATE EXTEN-
SIONS OF CREDIT IN GAMBLING ESTABLISHMENTS.—
(1) IN GENERAL.—Chapter 2 of the Truth in
Lending Act (15 U.S.C. 1631 et seq.) is amended by
adding at the end the following new section:
‘‘SEC. 140. PROHIBITION ON INITIATION OF EXTENSIONS OF
CREDIT IN CERTAIN GAMBLING AREAS WITH-
IN GAMBLING ESTABLISHMENTS.
‘‘(a) IN GENERAL.—No person may—
‘‘(1) place, or cause to be placed, an electronic
terminal; or
‘‘(2) otherwise accept the use of a credit card
by a consumer to initiate a consumer credit trans-
action to pay for money, property, or services ob-
tained by the consumer,
in the immediate area of a gambling establishment where
any form of wager or bet is made or accepted, any game
of chance is played, any gambling device is used, or any
other form of gambling is carried on.
‘‘(b) REGULATIONS.—
‘‘(1) IN GENERAL.—The Board shall prescribe
such regulations as the Board may consider to be
appropriate to ensure that the use of an electronic
terminal or the use of a credit card to initiate a con-
sumer credit transaction to pay for money, property,
or services obtained by a consumer is kept, to the
extent practicable, physically segregated from any
activity described in subsection (a).
‘‘(2) SEPARATE
SETTING.—Such regulations
shall include a clear delineation of the setting in
which, and the circumstances under which, any use
of an electronic terminal or credit card referred to
in paragraph (1) should be conducted in a location
physically segregated from an area where any activ-
ity described in subsection (a) is routinely carried
on.
‘‘(c) CIVIL LIABILITY.—
‘‘(1) IN GENERAL.—Any person who fails to
comply with any provision of this title with respect
to any electronic terminal or the acceptance of a
credit card to initiate a consumer credit transaction
at a place in a gambling establishment that con-
stitutes a violation shall be liable to any consumer
who uses the electronic terminal or provides a credit
card at such place in an amount equal to the sum
of the amounts determined under each of the fol-
lowing subparagraphs:
‘‘(A) ACTUAL
DAMAGES.—The greater
of—