Bill Text: CA AB1395 | 2015-2016 | Regular Session | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Money laundering: criminal activity: lotteries and gaming.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Failed) 2016-11-30 - From Senate committee without further action. [AB1395 Detail]

Download: California-2015-AB1395-Introduced.html

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BILL NUMBER: AB 1395	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Salas

                        FEBRUARY 27, 2015

   An act to amend Section 17539.1 of the Government Code, relating
to business.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1395, as introduced, Salas. Unfair business practices: contests
and sweepstakes.
   Existing law generally regulates false advertising and
specifically prohibits certain unfair acts or practices undertaken
by, or omissions of, a person in the operation of a contest or
sweepstakes, including, among others, misrepresenting the number of
participants in a contest or sweepstakes or representing, directly or
by implication, that any tie breaker puzzle may be entered upon the
payment of money qualifying the contestant for an extra cash or any
other type prize or prizes except as specified.
   This bill would make nonsubstantive changes to these provisions.
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


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

  SECTION 1.  Section 17539.1 of the Business and Professions Code is
amended to read:
   17539.1.  (a) The following unfair acts or practices undertaken
by, or omissions of, any person in the operation of any contest or
sweepstakes are prohibited:
   (1) Failing to clearly and conspicuously disclose, at the time of
the initial contest solicitation, at the time of each precontest
promotional solicitation and each time the payment of money is
required to become or to remain a contestant, the total number of
contestants anticipated based on prior experience and the percentages
of contestants correctly solving each puzzle used in the three most
recently completed contests conducted by the person. If the person
has not operated or promoted three contests he or she shall disclose
for each prior contest if any, the information required by this
section.
   (2) Failing to promptly send to each member of the public upon his
or her request, the actual number and percentage of contestants
correctly solving each puzzle or game in the contest most recently
completed.
   (3) Misrepresenting in any manner the odds of winning any prize.
   (4) Misrepresenting in any manner, the rules, terms, or conditions
of participation in a contest.
   (5) Failing to clearly and conspicuously disclose with all contest
puzzles and games and with all promotional puzzles and games all of
the following:
   (A) The maximum number of puzzles or games that may be necessary
to complete the contest and determine winners.
   (B) The maximum amount of money, including the maximum cost of any
postage and handling fees, that a participant may be asked to pay to
win each of the contest prizes then offered.
   (C) That future puzzles or games, if any, or tie breakers, if any,
will be significantly more difficult than the initial puzzle.
   (D) The date or dates on or before which the contest will
terminate and upon which all prizes will be awarded.
   (E) The method of determining prizewinners if a tie remains after
the last tie breaker puzzle is completed.
   (F) All rules, regulations, terms, and conditions of the contest.
   (6) Failing to clearly and conspicuously disclose the exact nature
and approximate value of the prizes when offered.
   (7) Failing to award and distribute all prizes of the value and
type represented.
   (8) Representing directly or by implication that the number of
participants has been significantly limited, or that any particular
person has been selected to win a prize unless  such
  that  is the fact.
   (9) Representing directly or by implication that any particular
person has won any money, prize, thing, or other value in a contest
unless there has been a real contest in which a meaningful
percentage, which shall be at least a majority, of the participants
in  such   those  contests have failed to
win a prize, money, thing, or other value.
   (10) Representing directly or by implication that any particular
person has won any money, prize, thing, or other value without
disclosing the exact nature and approximate value thereof.
   (11) Using the word "lucky" to describe any number, ticket,
coupon, symbol, or other entry, or representing in any other manner
directly or by implication that any number, ticket, coupon, symbol,
or other entry confers or will confer an advantage upon the recipient
that other recipients will not have, that the recipient is more
likely to win a prize than are others, or that the number, ticket,
coupon, symbol, or other entry has some value that other entries do
not have.
   (12) Using or offering for use any method intended to be used by a
person interacting with an electronic video monitor to simulate
gambling or play gambling-themed games in a business establishment
that (A) directly or indirectly implements the predetermination of
sweepstakes cash, cash-equivalent prizes, or other prizes of value,
or (B) otherwise connects a sweepstakes player or participant with
sweepstakes cash, cash-equivalent prizes, or other prizes of value.
For the purposes of this paragraph, "business establishment" means a
business that has any financial interest in the conduct of the
sweepstakes or the sale of the products or services being promoted by
the sweepstakes at its physical location. This paragraph does not
make unlawful game promotions or sweepstakes conducted by for-profit
commercial entities on a limited and occasional basis as an
advertising and marketing tool that are incidental to substantial
bona fide sales of consumer products or services and that are not
intended to provide a vehicle for the establishment of places of
ongoing gambling or gaming.
   (13) Failing to obtain the express written or oral consent of
individuals before their names are used for a promotional purpose in
connection with a mailing to a third person.
   (14) Using or distributing simulated checks, currency, or any
simulated item of value unless there is clearly and conspicuously
printed thereon the words: SPECIMEN--NONNEGOTIABLE.
   (15) Representing, directly or by implication, orally or in
writing, that any tie breaker puzzle may be entered upon the payment
of money qualifying the contestant for an extra cash or any other
type prize or prizes unless:
   (A) It is clearly and conspicuously disclosed that the payments
are optional and that contestants are not required to pay money,
except for reasonable postage and handling fees, to play for an extra
cash or any other type of prize or prizes; and
   (B) Contestants are clearly and conspicuously given the
opportunity to indicate they wish to enter  such 
 that  phase of the contest for free, except for reasonable
postage and handling fees the amount of which shall not exceed one
dollar and fifty cents ($1.50) plus the actual cost of postage and
which shall be clearly and conspicuously disclosed at the time of the
initial contest solicitation and each time thereafter that the
payment of  such   the  fees is required.
The contestants' opportunity to indicate they wish to enter for free
shall be in immediate conjunction with and in a like manner as the
contestants' opportunity to indicate they wish to play for an extra
prize.
   (b) For the purposes of this section, "sweepstakes" means a
procedure, activity, or event, for the distribution, donation, or
sale of anything of value by lot, chance, predetermined selection, or
random selection that is not unlawful under other provisions of law,
including, but not limited to, Chapter 9 (commencing with Section
319) and Chapter 10 (commencing with Section 330) of Title 9 of Part
1 of the Penal Code.
   (c) This section does not apply to an advertising plan or program
that is regulated by, and complies with, the requirements of Section
17537.1.
   (d) Nothing in this section shall be deemed to render lawful any
activity that is unlawful pursuant to other law, including, but not
limited to, Section 320, 330a, 330b, 330.1, or 337j of the Penal
Code.
   (e) Nothing in this section shall be deemed to render unlawful or
restrict otherwise lawful games and methods used by a gambling
enterprise licensed under the Gambling Control Act or operations of
the California State Lottery.