Oregon's 2011 legislature is considering a controversial new bill, Senate Bill 262, which specifically targets the state's equine industry. As of February 10, 2011, the bill has not made it very far through the legislative process; it remained in the Environment and Natural Resources committee. However, it still very early, and there is no way to predict exactly how far the bill will ultimately get in the legislative process. It is also far too early to know what changes, if any, will be made to bill as it moves through the process. The purpose of this article is to generally provide a section-by-section explanation of the bill's major provisions as it is proposed. Hopefully, this information will empower oregonians to make informed decision about whether they want their respective state legislators to support the bill.

Since the bill was first introduced in the state Senate in January, negative comments about the bill have appeared on Facebook. Some equine owners claim they will move out of Oregon if this bill passes. There are online campaigns urging everyone to help “stop” the bill. I have received emails urging me to help “stop” the bill. I have heard comments that people believe the bill goes so far as to dictate what they feed their equines. Much of this discussion portrays a rather extreme 'doomsday' scenario for Oregon's equine industry if this bill passes, and suggests to me there is considerable confusion and misunderstanding about what the bill actually proposes.

On balance, I believe the bill represents an effort to protect the health and well-being of Oregon's most vulnerable equines. The bill may also help reduce the incidence of fraud, equine theft, and problems arising out of the growth of illegitimate equine rescue operations and the increase in animal abuse and neglect cases statewide. To accomplish this, the bill establishes a new “ownership certificate” program, “equine trader” permits, and a registry for “equine rescue facilities.” Fees generated from these programs would be paid to and used by the Dept. of Agriculture for enforcement. The bill also imposes certain rules and restrictions on those who transport equines within the state.

What Changes to Oregon Law Are Proposed In The Bill?
As proposed, the most significant provisions of the bill are those that would:

• Require the owner of any equine located in Oregon for more than 30 consecutive days to get a state-issued “equine ownership certificate” if the equine does not already have a lifetime brand inspection from the Dept. of Agriculture

• Fine equine owners who do not already have a lifetime brand inspection or who fail to get the required ownership certificate

• Require all equine transfers within Oregon to be recorded with the state

• Require all equine haulers to comply with certain safety-oriented restrictions and rules when hauling equines

• Create a permit system and certain administrative requirements for “equine traders”

• Create a state registry and certain minimum standards for “equine rescue facilities”

If the bill passes, the proposed changes would not take effect immediately. Most provisions would not be implemented or required until January 1, 2015, while some would take effect January 1, 2014.

Section 1: Section 1 is a kind of glossary, defining four terms that are used throughout the bill: (1) equine; (2) equine carrier; (3) equine trader; and (4) trailer. An 'equine” is a “horse, pony, donkey, mule, or hinny or any hybrid of those animals.” An “equine carrier” means “a person that transports equine by motor vehicle for compensation as a contract carrier. In other words, an “equine carrier” is someone who is paid to haul equines. An “equine trader” is “the holder of an equine trader permit issued under Section 7…” of the bill. Unfortunately, the cross-reference in Section 1 to Section 7 does little to clarify who should or must have a permit. Thus, the “equine trader” definition is awkward.

Section 2: Section 2 requires owners of all equines in Oregon for more than 30 consecutive days to apply for an “equine ownership certificate,” which is essentially a equine 'license.' To get an ownership certificate, a equine owner must submit an application and pay a fee. Section 2 does not set a specific fee to obtain such certificate, although the fee cannot exceed $100. According to Section 24, the fee would be $25 if the owner applies for the ownership certificate by January 1, 2015, and there would be no fee if the equine already has a lifetime brand inspection if and when this bill passed.

The equine owner must provide the Dept. of Agriculture with at least the following information:

• The name and address of the applicant and the owner(s)

• Whether the equine is “currently registered” in Oregon or another state

• Whether the equine is registered with any breed association, and if so, a copy of the equine's registration papers must be provided

• A physical description of the equine

• The “place or places” at which the equine “will be regularly kept”

• “Any other information” the Dept. of Agriculture “considers necessary or convenient for processing a certificate or maintaining a certificate registry.”

The ownership certificate is valid for the equine's life unless the equine is transferred. When a equine is transferred to someone within Oregon, the equine's transfer must be reported to the Dept. of Agriculture; the buyer must apply for a new ownership certificate within 30 days of the sale. Other rules apply to equines sold out of state. Unfortunately, the bill does not specify whether a new certificate would be required if the owner's address changes, or if the equine is moved to a new boarding and/or training stable.

Section 3: Section 3 requires everyone transporting a equine in Oregon to “ensure that the equine is not transported more than eight hours between rest breaks. A rest break for an equine must include removal from any vehicle for at least six hours, appropriate food and potable water.” As a practicable matter, this provision would consequently require everyone hauling equines to maintain a log of when the equine was loaded and unloaded from the trailer, and to find a suitable location to permit the equine to rest on long hauls (more than eight hours) into, within, or out of the state. This would significantly impact how and when any equine is shipped long distance, particularly for out of state shows.

Sections 4 and 5: Sections 4 and 5 apply only to “equine carriers,” who haul for a fee. Section 4 establishes the following minimum standards for transporting equines to minimize the risk of harm or injury to the equine:

• Prohibiting the use of double-tier equine trailers, like those used for cattle

• Using trailers that are “designed, constructed, and maintained in a manner that at all times protects the health and well-being” of the equine

• Separating aggressive equines from other equines

• Providing a trailer with adequately sized doors and enough interior height to “stand with its head extended to the fullest normal postural height”

• Providing a equine enough floor space to prevent crowding likely to cause injury

• Requiring the vehicle pulling the trailer to be “driven in a manner reasonably calculated to avoid causing injury” to the equine

• Checking on the physical condition and segregation of the equines at least every 6 hours

• Obtaining veterinary care as soon as practicable for equines in “obvious physical distress”

• Providing veterinary care or humane euthanization for equines that become nonambulatory during transport

• Once a equine has been in the trailer for eight hours, unloading, feeding, watering, and removing the equine from the trailer for at least 6 hours of rest

• Prohibiting the use of an electric prod on a equine when loading, transporting, or unloading

Section 5 addresses the need for “equine carriers” to have certain documents concerning the equine(s) in his/her trailer and to provide law enforcement with access to such documents and equines, which is accomplished by prohibiting equine carriers in Oregon from:

• Picking up an equine in Oregon and transporting it unless the person presenting the equine for transport has (1) an ownership certificate, or (2) documentation showing the equine has been in Oregon for less than 30 consecutive days

• Failing to possess (1) an ownership certificate, or (2) documents showing the equine was in Oregon for less than 30 consecutive days from the date the “equine carrier” picked up the equine

• Failing to present to the person to whom the equine is delivered (1) an ownership certificate, or (2) documentation showing the equine has been in Oregon for less than 30 consecutive days

• Refusing to present to law enforcement for inspection (1) an ownership certificate, or (2) documentation showing the equine has been in Oregon for less than 30 consecutive days

• Refusing to allow law enforcement to inspect a equine being transported by the “equine carrier”

Section 6: Section 6 generally requires a equine seller to (1) complete an “equine transfer form” as specified by the Dept. of Agriculture, and (2) provide to the buyer of a equine the transfer form, the ownership certificate, and a notarized bill of sale. This section further requires all equine transfers within Oregon to be recorded with the Dept. of Agriculture within 30 days of transfer. In most cases, the Dept. of Agriculture would issue a new ownership certificate to the buyer upon payment of a $10 transfer fee. For equine transfers involving a federal agency (i.e., adopting a wild equine from the Bureau of Land Management) or equines adopted from a registered “equine rescue facility”, there would be no transfer fee. Unless the transfer involves an “equine trader”, no buyer could resell a equine until the Dept. of Agriculture records the transfer and issues a new ownership certificate to the buyer. A equine owner would be required to notify the Dept. of Agriculture if a equine dies, is euthanized, is transported out of state, or is sold to an out of state buyer.

Sections 7 - 9: Sections 7 through 9 apply only to “equine traders,” a term that unfortunately is not well-defined in the bill. These sections establish a state-issued permit system for traders. The bill apparently allows anyone who meets certain requirements to obtain a “trader permit,” but it does not specify who should or is required to obtain such a permit.

Section 7 describes the application process for and rules pertaining to trader permits. There is an annual fee of $100, and all applicants must disclose, among other things, his/her criminal record, if any. Generally, traders who purchase equines would be required to obtain from the seller a notarized bill of sale, an ownership certificate, and a transfer form completed by the seller. In exchange, the trader must provide the seller with a receipt for the equine and the documents. The trader does not need to record his/her purchase with the Dept. of Agriculture, and may simply resell the equine and provide the buyer with all of the documentation obtained from the original seller without recording the equine's transfer to the trader. However, the transfer form must still reflect the name and permit number of the trader, and the date of the trader's transfer of the equine to the buyer.

Section 8 requires all traders to maintain inventory records for all of the equines they sell. These records must contain certain information specified in the bill. Traders must file monthly reports with the Dept. of Agriculture. This section also gives the Dept. of Agriculture with the right to enter the “business premises of an equine trader during reasonable hours” to inspect the equines on site and the records of the trader.

Section 9 gives the Dept. of Agriculture the power to deny, refuse to renew, suspend, or revoke a trader permit under certain circumstances. once a permit is revoked, the trader cannot apply for a new permit for at least five years.

Sections 10 - 12: Sections 10 - 12 apply to “equine rescue facilities.” Section 10 provides for a state registry of rescue facilities. To be a registered as an “equine rescue facility,” the “facility” must (1) be an Oregon non-profit corporation, (2) meet certain minimum (but as of yet undetermined) standards for the facility and for the care and treatment of the equines. All registrations would be free and are renewable annually. To register, a registrant must file certain documents with the Dept. of Agriculture confirming the registration requirements are met. The Dept. of Agriculture may remove a facility from the registry if the facility violates certain laws, people associated with the facility are convicted of certain crimes, or the facility does not meet the minimum standards.

Section 11 requires rescue facilities to maintain certain inventory and transfer records and file monthly reports with the Dept. of Agriculture. This section also gives the Dept. of Agriculture with the right to enter the “business premises of a registered equine rescue facility during reasonable hours” to inspect the facility and records of the facility.

Section 12 requires anyone claiming to “receive” a equine for “rescue” or who solicits funding from public or private sources must clearly and conspicuously disclose that he/she/it is not approved by the state as an equine rescue facility unless the facility is actually listed on the Dept. of Agriculture's registry.

Section 13: Section 13 establishes fines of between $500 and $1,000 per offense for:

• Failing to get an ownership certificate if/when required

• Failing to provide a equine with food, water, or an opportunity to rest for 6 hours after being in the trailer for 8 hours

• Equine carriers who fail to comply with any of the rules and restrictions applicable to them

• Equine traders who fail to company with any of the rules and restrictions applicable to them

Section 14 - 15: These sections apply to livestock auctions that sell equines, and address the exchange and recording of equine transfer documents between the parties and the auctioneer. Section 15 also requires livestock auctions to maintain certain records and file monthly reports with the Dept. of Agriculture.

Section 16: This section requires that the application fees for ownership certificates and trader permits be deposited into an already existing trust fund overseen by the state treasurer, the Dept. of Agriculture Service Fund.

Section 17: This section adds a definition for “equine” to a preexisting statute, ORS 599.205.

Section 18: This section adds a reference to “equine” to a preexisting statute, ORS 599.510.

Section 19: Generally, this section empowers the Dept. of Agriculture to use its livestock police officers and investigative officers to enforce its authority under the bill.

Section 20: This section adds a reference to the proposed laws regarding ownership certificates and transfer forms to a preexisting statute, ORS 599.620.

Section 21: This section redefines “equidae” in a preexisting statute, ORS 604.005.

Section 22: This section removes any reference to collecting brand inspection fees for “equidae,” because the ownership certificate program will replace the Dept. of Agriculture's brand inspection program form equines.

Section 23: This section makes it a violation of Oregon's preexisting Unlawful Trade Practices Act to state that a facility is an “equine rescue facility” if such facility is not in fact registered with the Dept. of Agriculture.

Section 24: This section sets certain timelines for implementing the ownership certificate portions of this bill if it is passed. Ownership certificates must be available by July 1, 2012, but they would not be required until January 1, 2015. Notably, the inspection and registration fee for any ownership certificate received before January 1, 2015 would be only $25. If a equine already has or obtains a lifetime brand inspection before January 1, 2015, there is no inspection and registration fee for an ownership certificate.

Section 25: This section sets certain timelines for implementing remaining portions of this bill if it is passed. Equine trader permits must be available by January 1, 2014, but they would not be required for equine traders until January 1, 2015. Equine rescue facility registration must be available no later than January 1, 2014.

How Would Senate Bill 262 Impact Oregon's Equine Industry?
Claims are circulating among members of Oregon's equine community that the certificate and transfer fees are an excessive tax, and that requiring equine owners to pay such fees would devastate Oregon's equine industry. Some are claiming that these fees may simply prompt equine owners to release their equines into the wild to avoid payment. However, when one compares these proposed fees to the annual licensing fees for dogs in several of Oregon's counties, such claims seem overstated. Many Oregon dog owners pay anywhere from $5 - $45 annually to license their dogs, yet Oregon's equine owners complain about a lifetime certificate fee of $100 or less and a transfer fee of $10? Moreover, for equines that already have lifetime brand inspections, there would be no ownership certificate fee at all. When compared to the overall costs associated with equine care, breeding, showing, training, etc., these fees are quite small.

Claims have been made that the bill would cause out-of-state equine owners who currently have equines in training in Oregon or boarded at Oregon stables to remove their equines from the state. Again, given the overall costs of care and training, this seems unlikely. However, I have heard concerns that out-of-state equine owners who currently travel to Oregon, some of whom come for weeks at a time for shows, would not attend Oregon shows if they had to get an Oregon ownership certificate. With that in mind, perhaps a longer duration of time (such as 60 or 90 consecutive days) would be better than the 30 consecutive day period currently proposed.

I have also seen claims that once the bill passes, government employees would immediately start sweeping through shows, boarding stables, and family farms to catch and fine equine owners who have failed to obtain ownership certificates for their equines. This also seems unlikely due to the delay until at least 2014 in implementing most of this bill's provisions.

Finally, some have complained about the bill requiring equine sellers to provide notarized bills of sale to buyers. From my perspective as an equine lawyer, providing a notarized bill of sale is an easy and low-cost way for the parties to protect themselves in any transfer. Having a written bill of sale may clarify the terms of the sale for all parties, thus reducing the risk of misunderstanding and a lawsuit if there is a problem. Having a notarized bill of sale may further reduce other risks, such as identify theft, horse theft, fraud, and complications associated with transferring registration papers and other documentation into the buyer's name. In most cases, banks will offer free or low-cost notary services for their customers.

Conclusion:
Senate Bill 262 proposes some significant changes to Oregon law. For more information on the content and status of this important legislation, you can go to the Oregon state legislature's website, www.leg.state.or.us. I also encourage you to contact your local state representative and/or senator to show your support for, or concerns about, Senate Bill 262.

About the Author
As a rider, owner, exhibitor, breeder, and judge, Kathryn A. Hall has been involved with horses for over 30 years. Ms. Hall has been practicing equine law since 2004. Ms. Hall is the Chair-Elect of the Animal Law Section of the Oregon State Bar, as well as a member of the Animal Law Section of the Washington State Bar Association. Ms. Hall's clientele includes equine owners and industry professionals, including trainers, breeders, and boarding facility owners. Ms. Hall is the current President of the Oregon Hunter Jumper Association, and an active member of the United States Equestrian Federation and a former member of the American Hanoverian Society.

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Disclaimer:
This article does not constitute legal advice, nor does it create an attorney-client relationship. If you have a question regarding a specific situation, your question should be directed to a knowledgeable attorney.