BILL NUMBER: AB 156	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JUNE 29, 2011
	AMENDED IN SENATE  JUNE 23, 2011
	AMENDED IN ASSEMBLY  MARCH 14, 2011

INTRODUCED BY   Assembly Member Lara

                        JANUARY 18, 2011

   An act to amend Section 19902 of, and to add Sections 19906 and
19943.5 to, the Business and Professions Code, relating to gaming.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 156, as amended, Lara. Gambling control.
   Existing law establishes the California Gambling Control
Commission, prescribes the requirements for obtaining a gambling
license, and defines a gambling establishment or licensed premises
for these purposes. Existing law prohibits a contract for the sale or
lease of real or personal property that requires the approval or
licensing of the transferee by the commission from specifying a
closing date earlier than 90 days after the submission of the
completed application for approval or licensing to the commission.
   This bill would, instead, prohibit a contract for the sale or
lease of real or personal property from specifying a closing date
that is prior to that approval or licensing by the commission. The
bill also would require a contract for the sale of a gambling
enterprise to state whether any outstanding gaming chips from the
seller will be honored by the purchaser, and to specify whether the
purchaser or the seller will redeem outstanding gaming chips, as
specified. The bill would require the seller to post a notice of the
pending sale to permit redemption of gaming chips. The bill would
require the Department of Justice to oversee the redemption of the
chips.
   Existing law requires the department to approve the play of any
controlled game, including, but not limited to, placing restrictions
and limitations on how a controlled game is played.
   This bill would provide that a gambling enterprise that conducts
play of a controlled game that has been approved by the department,
but is later found to be unlawful, has an absolute defense to any
criminal, administrative, or civil action provided the game was being
played in the manner approved during the time for which it was
approved, and play ceases upon notice that the game has been found
unlawful.  The bill would provide that the gambling enterprise
has the burden, in any enforcement action, of proving the department
approved the controlled game, and that the game was played in the
manner approved. 
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 19902 of the Business and Professions Code is
amended to read:
   19902.  When any person contracts to sell or lease any property or
interest in property, real or personal, under circumstances that
require the approval or licensing of the purchaser or lessee by the
commission pursuant to subdivision (a) of Section 19853, the contract
shall not specify a closing date for the transaction that is prior
to that approval or licensing by the commission. Any provision of a
contract that specifies an earlier closing date is void for all
purposes, but the invalidity does not affect the validity of any
other provision of the contract.
  SEC. 2.  Section 19906 is added to the Business and Professions
Code, to read:
   19906.  A contract for the sale of a gambling enterprise shall
state whether any outstanding gaming chips from the seller will be
honored by the purchaser. If the purchaser does not intend to
continue using the same gaming chips that were in use by the seller,
then the contract shall specify whether the purchaser or the seller
will redeem those gaming chips that are outstanding as of the closing
date of the sale. The seller shall post a notice at the gambling
establishment to notify the patrons of the pending sale of the
gambling enterprise in order to provide adequate opportunity for
redemption of gaming chips. The department shall oversee the
redemption of the chips, and require that sufficient proceeds are
available for the redemption.
  SEC. 3.  Section 19943.5 is added to the Business and Professions
Code, to read:
   19943.5.  If a gambling enterprise conducts play of a controlled
game that has been approved by the department pursuant to Section
19826, and the controlled game is subsequently found to be unlawful,
so long as the game was played in the manner approved, the approval
by the department shall be an absolute defense to any criminal,
administrative, or civil action that may be brought, provided that
the game is played during the time for which it was approved by the
department and the gambling enterprise ceases play upon notice that
the game has been found unlawful.  In any enforcement action, the
gambling enterprise shall have the burden of proving the department
approved the controlled game, and that the game was   played
in the manner approved.