Bill Text: CA SB474 | 2015-2016 | Regular Session | Amended

California Senate Bill 474 (Prior Session Legislation)

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

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-Amended.html

BILL NUMBER: SB 474	AMENDED
	BILL TEXT

	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, as amended, 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 express the intent of the Legislature to enact
legislation that would define the term "credit bid" as that term
applies to auctions.  
   This bill would eliminate that prohibition, but 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, and 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. 
   Vote:  majority   2/3  . Appropriation:
no. Fiscal committee:  no   yes  .
State-mandated local program:  no   yes  .


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)  Except as provided in subdivision (d), a person shall
not cause or allow a person to bid at a sale for the sole purpose of
increasing the bid on any real property being sold by the
auctioneer, including, but not limited to, stating any  
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.
 However,   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. 
   (d) This section shall not apply to a credit bid made by a
creditor holding a deed of trust, mortgage, or other lien on the
property that is the subject of auction when the credit bid can
result in the transfer of title to property to the creditor.
 
   (e) 
    (   d)  This section shall be operative on July
1, 2015.
   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 amend Section 1812.610 of the Civil Code before its
operative date, it is necessary for this act to take effect
immediately.  
       
  SECTION 1.    It is the intent of the Legislature
to enact legislation that would define the term "credit bid" as that
term applies to auctions.