Bill Text: CA SB254 | 2009-2010 | Regular Session | Chaptered
Bill Title: Horses: sale, purchase, or transfer.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2009-08-06 - Chaptered by Secretary of State. Chapter 42, Statutes of 2009. [SB254 Detail]
Download: California-2009-SB254-Chaptered.html
BILL NUMBER: SB 254 CHAPTERED
BILL TEXT
CHAPTER 42
FILED WITH SECRETARY OF STATE AUGUST 6, 2009
APPROVED BY GOVERNOR AUGUST 5, 2009
PASSED THE SENATE MAY 26, 2009
PASSED THE ASSEMBLY JULY 13, 2009
AMENDED IN SENATE MAY 20, 2009
INTRODUCED BY Senator Wiggins
FEBRUARY 24, 2009
An act to repeal and add Section 19525 of the Business and
Professions Code, relating to horse racing.
LEGISLATIVE COUNSEL'S DIGEST
SB 254, Wiggins. Horses: sale, purchase, or transfer.
Existing law prohibits a person from receiving any form of
compensation in connection with the sale or purchase of a racehorse,
prospective racehorse, stallion, or broodmare, unless the purchaser
and seller have agreed in writing to the payment of that
compensation.
This bill instead would require any sale, purchase, or transfer of
an equine, as defined, to be accompanied by a written bill of sale
or acknowledgment of purchase setting forth the purchase price, and
signed by both the purchaser and seller or their duly authorized
agents, as specified. The bill would provide that it is unlawful for
any person to act as a dual agent, as defined, unless certain
conditions are met, and would make it unlawful for a person acting as
an agent to receive in excess of $500 in compensation or in other
items of value, related to that transaction, other than from the
agent's principal, unless certain conditions are met. This bill would
provide conditions for the enforceability of a contract for a
commission on the sale, purchase, or transfer of an equine, as
specified. The bill would allow any person injured by a violation of
its provisions to recover treble damages. The bill would provide that
the board may suspend or revoke the license of any person who
violates its provisions.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 19525 of the Business and Professions Code is
repealed.
SEC. 2. Section 19525 is added to the Business and Professions
Code, to read:
19525. (a) For purposes of this section, "equine" means a horse
of any breed used for racing or showing, including prospective
racehorses, breeding prospects, stallions, stallion seasons,
broodmares, yearlings, or weanlings, or any interest therein.
(b) Any sale, purchase, or transfer of an equine shall be both of
the following:
(1) Accompanied by a written bill of sale or acknowledgment of
purchase setting forth the purchase price.
(2) Signed by both the purchaser and the seller or their duly
authorized agents or, in a transaction solely relating to a season or
fractional interest in a stallion, signed by the syndicate manager
or stallion manager.
(c) When a transaction described in subdivision (b) is
accomplished through a public auction, the bill of sale requirement
may be satisfied by the issuance of an auction receipt generated by
the auction house and signed by the purchaser or an agent whom the
purchaser has authorized.
(d) It is unlawful for a person to act as a "dual agent," which is
hereby defined as a person acting as an agent for both the purchaser
and the seller, in a transaction involving the sale, purchase, or
transfer of an interest in an equine without the prior knowledge of
both the purchaser and seller, and the written consent of both the
purchaser and seller.
(e) It is unlawful for a person acting as an agent for either a
purchaser or a seller or acting as a dual agent in a transaction
involving the sale, purchase, or transfer of an equine to receive in
excess of five hundred dollars ($500) worth of compensation, fees,
gratuities, or other items of value, related directly or indirectly
to that transaction, from an individual or entity, including any
consigner involved in the transaction, other than the agent's
principal, unless both of the following occur:
(1) The agent receiving the item of value and the individual or
entity giving the item of value disclose the transfer of that item of
value in writing to the principal or principals for whom the agent
is acting.
(2) Each principal for whom the agent is acting consents thereto
in writing.
(f) Any person acting as an agent for a purchaser or seller or
acting as a dual agent in a transaction involving the sale, purchase,
or transfer of an equine shall, upon request by his or her principal
or principals, provide to the requesters copies of all financial
records in the possession or control of the agent pertaining to the
transaction. For purposes of this subdivision, financial records
shall not include the agent's or owner's work product used to
internally evaluate the equine.
(g) Any person injured by a violation of this section shall
recover treble damages from persons or entities violating this
section.
(h) No contract or agreement for payment of a commission, fee,
gratuity, or any other form of compensation in connection with any
sale, purchase, or transfer of an equine shall be enforceable by way
of an action or defense unless both of the following occur:
(1) The contract or agreement is in writing and is signed by the
party against whom enforcement is sought.
(2) The recipient of the compensation provides a written bill of
sale or auction receipt for the transaction in accordance with
paragraph (1) of subdivision (b) and subdivision (c) respectively.
(i) The board may suspend or revoke the license of any person who
violates this section.
(j) Subdivisions (g) and (h) shall not apply to the acts or
omissions of an entity or individual engaged in conducting a public
auction of an equine, or the entity or individual's employees or
agents, if both of the following conditions apply:
(1) The acts or omissions of the entity, individual, employee, or
agent are in furtherance of or pursuant to the conduct of the public
auction of an equine.
(2) The entity or individual is appropriately licensed or
authorized to conduct that specific public auction by the California
Horse Racing Board and any other governmental entity whose permission
or authorization is required to conduct the auction.
