BILL NUMBER: AB 156	ENROLLED
	BILL TEXT

	PASSED THE SENATE  AUGUST 31, 2011
	PASSED THE ASSEMBLY  SEPTEMBER 6, 2011
	AMENDED IN SENATE  AUGUST 29, 2011
	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, 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 the approval or licensing of the transferee 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, if the
contract does not require the purchaser to honor the outstanding
gaming chips, to indicate what provisions have been made for the
redemption of those chips. The bill would require the seller to give
notice to patrons to provide an adequate opportunity for the
redemption of gaming chips. The bill would require the Department of
Justice to determine the amount of the outstanding gaming chip
liability, and would require the seller to satisfy the commission
that the amount of liability is safeguarded by security sufficient to
satisfy the redemption of outstanding gaming 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.


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) 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 contract does not require the
purchaser to honor the outstanding gaming chips used by the seller,
then the contract shall indicate what provisions have been made for
the redemption of outstanding gaming chips as of the closing date of
the sale.
   (b) Prior to any action of the commission on the proposed contract
for sale of the gambling enterprise, the department shall determine
the amount of the seller's outstanding gaming chip liability. The
seller shall satisfy the commission that the amount of liability is
safeguarded by a surety bond, escrow account, or other form of
security sufficient to guarantee the availability of funds for the
redemption of outstanding gaming chips. The seller shall give notice
to the patrons of the gambling enterprise in order to provide an
adequate opportunity for redemption of any outstanding gaming chips.
  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.