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

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

---

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-Amended.html

---

BILL NUMBER: SB 254	AMENDED
	BILL TEXT

	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, as amended, 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repealed.
  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 
 the principal or principals for whom the agent is acting 
.
   (2)  The purchaser and seller each consent  
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  , 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.