Bill Text: CA SB254 | 2009-2010 | Regular Session | Introduced

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

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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-Introduced.html

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BILL NUMBER: SB 254	INTRODUCED
	BILL TEXT


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, as introduced, 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, and a security agreement 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. The bill would allow any person injured by a
violation of its provisions to recover treble damages, plus other
expenses. The bill would provide that the board may suspend or revoke
the license of any person who violates its 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 19525 of the Business and Professions Code is
repealed. 
   19525.  No licensee or any other person may receive a commission,
fee, gratuity, or any other 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 the commission, fee, gratuity, or other
compensation. No contract or agreement shall be enforceable by way of
an action or defense unless there is a writing sufficient to
indicate that the party against whom enforcement is sought or his or
her authorized agent or broker has agreed to the commission, fee,
gratuity, or other form of compensation. Anyone who receives a
commission, fee, gratuity or any other form of compensation in
violation of this section is subject to treble damages to the injured
purchaser or seller. The board may suspend or revoke the license of
any person who violates this section. Any transfer of an interest in
a racehorse, prospective racehorse, stallion, or broodmare shall be
accompanied by a written bill of sale setting forth the purchase
price. 
  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 and a security agreement 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 both the purchaser and seller.
   (2) The purchaser and seller each consent 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, and the prevailing party in any litigation under this
section shall be entitled to an award of costs of the suit,
reasonable litigation expenses, and attorney's fees. As used in this
section, treble damages shall equal three times the sum of both of
the following:
   (1) The difference, if any, between the price paid for the equine
and the actual value of the equine at the time of sale.
   (2) Any payment made in violation of subdivision (e).
   (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.