Bill Text: CA SB474 | 2015-2016 | Regular Session | Chaptered
Bill Title: Auctions.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2015-09-28 - Chaptered by Secretary of State. Chapter 354, Statutes of 2015. [SB474 Detail]
Download: California-2015-SB474-Chaptered.html
BILL NUMBER: SB 474 CHAPTERED
BILL TEXT
CHAPTER 354
FILED WITH SECRETARY OF STATE SEPTEMBER 28, 2015
APPROVED BY GOVERNOR SEPTEMBER 28, 2015
PASSED THE SENATE SEPTEMBER 1, 2015
PASSED THE ASSEMBLY AUGUST 27, 2015
AMENDED IN ASSEMBLY JULY 9, 2015
AMENDED IN SENATE APRIL 6, 2015
INTRODUCED BY Senator Wieckowski
FEBRUARY 26, 2015
An act to amend Section 1812.610 of the Civil Code, relating to
auctions, and declaring the urgency thereof, to take effect
immediately.
LEGISLATIVE COUNSEL'S DIGEST
SB 474, Wieckowski. Auctions.
Existing law regulates the activities of auctioneers and auction
companies and, on and after July 1, 2015, with respect to an auction
that includes the sale of real property, prohibits a person from
causing or allowing any person to bid at a sale for the sole purpose
of increasing the bid on any real property being sold by the
auctioneer, including stating an increased bid greater than that
offered by the last highest bidder was made when no person actually
made an increased bid. Existing law excepts from the application of
these provisions a credit bid made by a creditor with a security
interest in the property that is the subject of auction when the
credit bid can result in the transfer of title to property to the
creditor. Existing law provides that anyone who violates this
provision is guilty of a misdemeanor.
This bill would eliminate that prohibition, and would, instead,
prohibit an auctioneer from stating an increased bid greater than
that offered by the last highest bidder was made when no person
actually made an increased bid, as provided. The bill would eliminate
the exception for credit bids. By expanding the crime of violating
this provision to creditors making credit bids, this bill would
impose a state-mandated local program.
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.
This bill would declare that it is to take effect immediately as
an urgency statute.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 1812.610 of the Civil Code is amended to read:
1812.610. (a) Notwithstanding Section 1812.601, for purposes of
this section, an auction includes the sale of real property and an
"auctioneer" means any individual who is engaged in, or who by
advertising or otherwise holds himself or herself out as being
available to engage in, the calling for, the recognition of, and the
acceptance of, offers for the purchase of real property at an
auction.
(b) An auctioneer shall not state at an auction that an increased
bid greater than that offered by the last highest bidder has been
made when, in fact, no person has made an increased bid.
Notwithstanding the foregoing, an auctioneer or another authorized
person may place a bid on the seller's behalf during an auction of
real property that would not result in a sale of the real property,
if both of the following are true:
(1) Notice is given to all auction participants, including all
other bidders, that liberty for that type of bidding is reserved and
that type of bid will not result in the sale of the real property.
(2) The person placing that type of bid contemporaneously
discloses to all auction participants, including all other bidders,
that the particular bid has been placed on behalf of the seller.
(c) For the purpose of the conduct of online auctions of real
property, "notice" means a statement of the information required to
be given under paragraph (1) of subdivision (b) within the end user
license agreement, terms of service, or equivalent policy posted on,
or provided by, the operator of an Internet Web site, online service,
online application, or mobile application, and by conspicuously
posting the information required to be given under paragraph (1) of
subdivision (b) in any of the following ways:
(1) Upon the Internet Web page or its equivalent through which a
user directly interacts with the site, service, or application during
the online auction.
(2) With an icon that hyperlinks to an Internet Web page or its
equivalent upon which the required information is posted, if the icon
is located on the Internet Web page or its equivalent through which
a user directly interacts with the site, service, or application
during the online auction. The icon shall use a color that contrasts
with the background color of the Internet Web page or is otherwise
readily distinguishable.
(3) With a text link that hyperlinks to an Internet Web page or
its equivalent upon which the required information is posted, if the
text link is located on the Internet Web page or its equivalent
through which a user directly interacts with the site, service, or
application during the online auction. The text link shall be written
in capital letters that are in larger type than the surrounding
text, or shall be written in contrasting type, font, or color to the
surrounding text of the same size, or shall be set off from the
surrounding text of the same size by symbols or other marks that call
attention to the language.
(4) With any other functional hyperlink or its equivalent that is
displayed on the site, service, or application through which a user
directly interacts with the site, service, or application during the
online auction so that a reasonable person would notice it and
understand it to hyperlink to the required information.
SEC. 2. 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.
SEC. 3. This act is an urgency statute necessary for the immediate
preservation of the public peace, health, or safety within the
meaning of Article IV of the Constitution and shall go into immediate
effect. The facts constituting the necessity are:
In order to revise and eliminate, as soon as possible, certain
provisions in Section 1812.610 of the Civil Code that became
operative on July 1, 2015, before they potentially harm participants
in real estate auctions, it is necessary for this act to take effect
immediately.
