The Wiggins measure requires each purchase, sale or transfer to be accompanied by a written bill of sale signed by the buyer and seller.
It also prohibits any person from acting as a dual agent without the knowledge and written consent of the buyer and seller.
SB 254 further restricts an agent's compensation to no more than $500 per transaction unless the amount of compensation is disclosed in writing and the buyer and seller provide written consent.
According to Wiggins, “current law lacks clarity and has resulted in opportunities for unscrupulous individuals to defraud people in the sale of horses.”
A person is prohibited under existing law 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 makes it clear that any sale, purchase, or transfer of an equine is 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,” Wiggins said. “SB 254 makes it unlawful for any person to act as a dual agent unless certain conditions are met, and prohibits 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.”
SB 254 would allow any person injured by a violation of its provisions to recover treble damages, plus other expenses. The bill also provides that the California Horse Racing Board may suspend or revoke the license of any person who violates its provisions.
Stonestreet, the sponsor of the bill, writes, that the “unfortunate reality of the equine world is that traditionally acceptable industry practices have resulted in an environment which provides an opportunity for unscrupulous individuals to defraud others and when such fraud has been both difficult to detect and correct. The intent of the statute is leveled at both correcting the business culture by mandating written agreements and deterring inappropriate behavior by providing enhanced damages. The revision (called for by SB 254) does not change the intent of existing law; it simply clarifies the language and improves the efficiency of the statute."
