BILL NUMBER: AB 156	AMENDED
	BILL TEXT

	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  Section
  Sect   ions 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  and   ,  prescribes the
requirements for obtaining a gambling license  ,  and
defines a gambling establishment or licensed premises for these
purposes. Existing law  limits the transfer of property if
the transferee has to be approved or licensed by the commission, and
specifically  prohibits a contract for  the  sale
or lease of real or personal property that requires  the 
approval  of   or licensing of the transferee by
 the commission  , as specified,  from
specifying a closing date earlier than 90 days after the submission
of the  contract   completed application for
approval or licensing  to the commission  , as specified
 .
   This bill would  permit   ,  
instead, prohibit  a contract for the sale or lease of real or
personal property  , subject to the limitations described
above, to specify   from specifying  a closing date
 earlier than 90 days after the submission of the contract
to the commission if the commission has approved the contract and the
parties have requested it   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  establishment
  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  and,  during the time for which it was
approved, and play ceases upon notice that the game has been found
unlawful.
   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
 earlier than the expiration of 90 calendar days after the
submission of the completed application for approval for licensing.
Except as provided in this section, any   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.  If the commission has
approved a contract for sale or lease, the commission may permit the
contract to specify a closing date that is earlier than the
expiration of 90 calendar days after the submission of the completed
application, if so requested by the parties to 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. 2.   SEC. 3.   Section 19943.5 is
added to the Business and Professions Code, to read:
   19943.5.  If a gambling  establishment  
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  establishment  gambling
enterprise  ceases play upon notice that the game has been found
unlawful.