BILL NUMBER: AB 1016	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Plescia

                        FEBRUARY 22, 2007

   An act to add Article 12 (commencing with Section 19680) to
Chapter 4 of Division 8 of the Business and Professions Code, and to
add Section 3064.5 to the Civil Code, relating to racehorses.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1016, as introduced, Plescia. Racehorses: liens for services.
   (1) Existing law creates a general lien on livestock in possession
of a livestock servicer to secure the performance of the obligations
of the owner to that person. Under existing law, if the owner fails
to satisfy those obligations, the livestock servicer may sell the
livestock after obtaining the consent of the owner, a court order, or
judgment, and recover the costs of the obligations of the owner and
lien enforcement, as specified. Existing law also creates a general
lien, dependent upon possession, for veterinary proprietors and
veterinary surgeons for their compensation in caring for, boarding,
feeding, and medical treatment of animals.
   This bill would permit a general lien on racehorses in the
possession of a breeder, trainer, owner, branding farm, fair training
facility, or racetrack for their compensation in caring for,
boarding, feeding, and medical treatment of racehorses. The bill
would permit that breeder, trainer, owner, branding farm, fair
training facility, or racetrack, if the obligations of the owner of
the racehorse are not satisfied, to sell a racehorse that has a value
of $4,000 or less without obtaining the consent of the owner, court
order, or judgment, if the amount of the lien is at least 50% of the
value of the racehorse and notice is sent to the owner prior to the
sale of the racehorse, as specified. The bill would require that the
notice of sale be signed under penalty of perjury. By creating a new
crime, the bill would impose a state-mandated local program.
   The bill would also express the intent of the Legislature that a
racehorse sold pursuant to these provisions may not be sold to a
person who intends to possess, import into or export from the state,
or to sell, buy, give away, hold, or accept a racehorse with the
intent of killing, or having another kill, that racehorse if that
person knows or should have known that any part of the racehorse will
be used for human consumption, as specified.
   (2) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that no reimbursement is required by this
act for a specified reason.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.


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

  SECTION 1.  It is the intent of the Legislature that a racehorse
sold pursuant to this act may not be sold to a person who intends to
possess, import into or export from the state, or to sell, buy, give
away, hold, or accept a racehorse with the intent of killing, or
having another kill, that racehorse if that person knows or should
have known that any part of the racehorse will be used for human
consumption, as described in Section 598c of the Penal Code.
  SEC. 2.  Article 12 (commencing with Section 19680) is added to
Chapter 4 of Division 8 of the Business and Professions Code, to
read:

      Article 12.  Racehorse Liens


   19680.  For the purposes of this article, the following
definitions shall apply:
   (a) "Owner" means any owner of a racehorse who is listed on an
agreement between an owner and a racehorse service provider.
   (b) "Racehorse" means a horse that is subject to this chapter.
   (c) "Racehorse service provider" means a breeder, trainer, owner,
branding farm, fair training facility, or racetrack that provides
racehorse services.
   (d) "Racehorse services" means any and all grazing, feeding,
boarding, general care, medical treatment, or animal health services,
obtained or provided by the racehorse service provider, or an
employee of that provider, transportation or other services rendered
by a person to a racehorse for the owner of the racehorse, or for a
person acting by or under the owner's authority.
   19681.  A racehorse service provider shall have a general lien
upon a racehorse in possession of the service provider to secure the
performance of all obligations of the owner of the racehorse to the
racehorse service provider.
   19682.  (a) In addition to any other rights and remedies provided
by law, a lienholder may:
   (1) Retain possession of the racehorse and charge the owner for
the reasonable value of providing racehorse services to the racehorse
until the owner's obligations secured by the lien have been
satisfied.
   (2) Sell the racehorse if the lienholder determines in good faith
that the value of the racehorse is four thousand dollars ($4,000) or
less, the amount of the lien asserted is at least 50 percent of the
value of the racehorse, and, if the owner does not object to the sale
in writing as described in this section, the lienholder satisfies
the requirements in subdivision (b).
   (3) A lienholder may commence a legal action on its claim against
the owner of the racehorse or other person indebted to the lienholder
for services to the racehorse and reduce the claim to judgment. If
that judgment is entered, a lien or levy or other form of enforcement
that may be made on the racehorse by virtue of an execution based on
the judgment shall relate back to the attachment of and have the
same priority as the racehorse service lien. The lienholder may
purchase at a judicial sale held pursuant to the execution on the
judgment and hold the racehorse free of a lien on or security
interest in the racehorse.
   (b) If the lienholder determines in good faith that the value of
the racehorse is four thousand dollars ($4,000) or less and the
amount of the lien asserted is at least 50 percent of the value of
the racehorse, the lienholder shall send, by certified mail with
return receipt requested or by personal delivery to and accompanied
by a signature of the owner or other person indebted to the
lienholder, a Notice of Sale and a return envelope, postage prepaid
for certified mail with return receipt requested, preaddressed to the
lienholder, to the owner of the racehorse and other person indebted
to the lienholder for services to the racehorse. The Notice of Sale
shall be signed under penalty of perjury under the laws of this state
and shall include all of the following information and statements:
   (1) A description of the racehorse and the estimated value of that
racehorse.
   (2) The specific date, exact time, and place of sale that shall be
set not less than 31 days or more than 41 days, from the date of
mailing.
   (3) The names and addresses of the owners of the racehorse and
other persons indebted to the lienholder for services to the
racehorse.
   (4) All of the following statements:
   (A) The amount of the lien and the facts concerning the claim that
gives rise to the lien.
   (B) The owner or other person has a right to a hearing in court.
   (C) If a court hearing is desired, the owner or other person shall
object to the sale in writing, sent to the lienholder by certified
mail with return receipt requested, within 14 days of the date the
owner or other person received the Notice of Sale.
   (D) If the written objection to the sale is sent to the lienholder
within 14 days of the date the owner or other person received the
Notice of Sale, the lienholder may not sell the racehorse except
pursuant to court order, judgment, or written release by the owner.
   (E) If a court action is filed, the owner or other person shall be
notified of the lawsuit and may appear to contest the claim.
   (F) If an order or judgment is entered in favor of the lienholder,
the owner or other person may be liable for court costs and attorney'
s fees.
   (c) If the owner or other person objects in writing within 14 days
of the date the owner or other person received the Notice of Sale,
the lienholder may not sell the racehorse except as described in
paragraph (3) of subdivision (a).
  SEC. 3.  Section 3064.5 is added to the Civil Code, to read:
   3064.5.  A lien on racehorses in the possession of a breeder,
trainer, owner, branding farm, fair training facility, or racetrack
for their compensation in caring for, boarding, feeding, medical
treatment, and animal health services of racehorses shall be subject
to Article 12 (commencing with Section 19680) of Chapter 4 of
Division 8 of the Business and Professions Code.
  SEC. 4.  No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California
Constitution.