BILL NUMBER: AB 156 AMENDED
BILL TEXT
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, 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 the 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 , if the contract does not require
the purchaser to honor the outstanding gaming chips,
as specified to indicate what provisions have been
made for the redemption of those chips . The bill would require
the seller to post a give notice
of the pending sale to permit to patrons to
provide an adequate opportunity for the redemption of gaming
chips. The bill would require the Department of Justice to
oversee the redemption of the chips 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.
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) 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.
con tract 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.