AN ACT Relating to auctions; amending RCW 35.21.690 and 36.71.070; adding a new chapter to Title 19 RCW; repealing RCW 18.11.050, 18.11.060, 18.11.070, 18.11.080, 18.11.090, 18.11.100, 18.11.110, 18.11.120, 18.11.130, 18.11.140, 18.11.150, 18.11.160, 18.11.170, 18.11.180, 18.11.190, 18.11.200, 18.11.210, 18.11.900, 18.11.910, 18.11.920, 18.12.010, 18.12.020, 18.12.030, 18.12.040, 18.12.050, 18.12.060, 18.12.070, 18.12.080, 18.12.090, 18.12.100, 18.12.110, 18.12.120, 18.12.130, 18.12.140, 18.12.150, 18.12.160, 18.12.170, 18.12.180, 18.12.190, 18.12.200, and 18.12.900; and providing an effective date.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1. The legislature finds that unfair auction practices affect the public interest and are contrary to public policy. The legislature further finds that regulation of auctions is best achieved through provision of strengthened civil remedies and sanctions against unfair auction practices, not by licensing of auctioneers. The intent of this chapter is to define unfair auction practices and to apply to such practices the remedies and sanctions contained in the consumer protection act, chapter 19.86 RCW.

NEW SECTION. Sec. 2. Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

(1) "Auction" means the sale of or offer to sell property by public outcry or to the highest bidder.

(2) "Auctioneer" means a person who sells or offers to sell property at auction for another on commission or for a fee.

(3) "Auction mart" means any fixed or established place designed, intended, or used for the conduct of auctions.

NEW SECTION. Sec. 3. No property shall be sold at auction until the auctioneer or the auction mart operator has entered into a written contract or agreement with the owner or consignor of the property. At a minimum the contract or agreement shall contain (1) the name and address of the owner or consignor, and (2) the terms and conditions under which the auctioneer or auction mart operator receives or accepts the property for sale at auction.

NEW SECTION. Sec. 4. Auctioneers and auction mart operators shall keep records available for inspection that clearly indicate the name and address of the owner or consignor, the terms of acceptance and sale, and a copy of the signed written contract. Auctioneers and auction mart operators shall maintain records for at least three years from the date of sale.

NEW SECTION. Sec. 5. The client of an auctioneer or auction mart operator has a right to (1) an accounting for any money that the auctioneer or auction mart operator receives from the sale of the client's goods, and (2) payment of all money due to the client within twenty-one calendar days after the client's goods were sold at auction unless the parties have mutually agreed in writing to another time of payment.

NEW SECTION. Sec. 6. A trust account for auction proceeds shall be established by each auctioneer or auction mart operator who has contracted with a client for sale of goods at auction. Unless a client receives a full accounting and payment within twenty-four hours of the sale, all funds received from the sale of a client's goods at auction shall be deposited in that account and held in trust for the client. The auctioneer or auction mart operator shall draw on the trust account only to pay proceeds to the client, or such other persons who are legally entitled to the proceeds, and to obtain the sums due to the auctioneer or auction mart operator for services as set out in the written contract required under section 3 of this act. The trust account required by this section shall be at a bank, savings and loan association, mutual savings bank, or licensed escrow agent located in the state. Funds in the trust account shall not be subject to the debt of the auctioneer or auction mart operator and shall not be used for personal reasons or other business reasons.

NEW SECTION. Sec. 7. A violation of any provision of this chapter is hereby declared to affect the public interest and to offend public policy. A violation, and any other act or practice by an auctioneer or auction mart operator that is unfair or deceptive, shall constitute an unfair or deceptive act or practice in violation of RCW 19.86.020 and is subject to the remedies and sanctions in chapter 19.86 RCW. The remedies and sanctions in this section shall not preclude application of other available remedies and sanctions.

Sec. 8. Section 2, chapter 189, Laws of 1984 and RCW 35.21.690 are each amended to read as follows:

A city or town shall not license auctioneers ((~~that are licensed by the state under chapter 18.11 RCW~~)) other than by requiring an auctioneer to obtain a general city or town business license and by subjecting an auctioneer to a city or town business and occupation tax. A city or town shall not require auctioneers ((~~that are licensed by the state under chapter 18.11 RCW~~)) to obtain bonding ((~~in addition to the bonding required by the state~~)).

Sec. 9. Section 36.71.070, chapter 4, Laws of 1963 as amended by section 6, chapter 189, Laws of 1984 and RCW 36.71.070 are each amended to read as follows:

(1) If any person sells any goods, wares, or merchandise, at auction or public outcry, or barters goods, wares or merchandise from traveling boats, wagons, carts or vehicles of any kind, or from any pack, basket or other package carried on foot without first having obtained a license therefor from the board of county commissioners of the county in which such goods are sold or bartered, he shall be guilty of a misdemeanor, and upon conviction shall be fined not less than five nor more than fifty dollars, and shall stand committed to the county jail of the county in which the conviction is had until such fine and cost of prosecution are paid, or discharged by due course of law: PROVIDED, That this section shall not be construed as to apply to any seagoing craft or to administrators or executors selling property of deceased persons, or to private individuals selling their household property, or furniture, or farming tools, implements, or livestock, or any produce grown or raised by them, either at public auction or private sale.

(2) Notwithstanding subsection (1) of this section, counties shall not license auctioneers ((~~that are licensed by the state under chapter 18.11 RCW~~)) or require bonding from auctioneers.

NEW SECTION. Sec. 10. The following acts or parts of acts are each repealed:

(1) Section 5, chapter 205, Laws of 1982 and RCW 18.11.050;

(2) Section 2, chapter 205, Laws of 1982 and RCW 18.11.060;

(3) Section 6, chapter 205, Laws of 1982 and RCW 18.11.070;

(4) Section 3, chapter 205, Laws of 1982, section 8, chapter 7, Laws of 1985 and RCW 18.11.080;

(5) Section 7, chapter 205, Laws of 1982 and RCW 18.11.090;

(6) Section 8, chapter 205, Laws of 1982, section 9, chapter 7, Laws of 1985 and RCW 18.11.100;

(7) Section 9, chapter 205, Laws of 1982, section 10, chapter 7, Laws of 1985 and RCW 18.11.110;

(8) Section 10, chapter 205, Laws of 1982, section 3, chapter 189, Laws of 1984 and RCW 18.11.120;

(9) Section 11, chapter 205, Laws of 1982 and RCW 18.11.130;

(10) Section 12, chapter 205, Laws of 1982 and RCW 18.11.140;

(11) Section 13, chapter 205, Laws of 1982 and RCW 18.11.150;

(12) Section 14, chapter 205, Laws of 1982 and RCW 18.11.160;

(13) Section 15, chapter 205, Laws of 1982 and RCW 18.11.170;

(14) Section 16, chapter 205, Laws of 1982 and RCW 18.11.180;

(15) Section 17, chapter 205, Laws of 1982 and RCW 18.11.190;

(16) Section 18, chapter 205, Laws of 1982 and RCW 18.11.200;

(17) Section 1, chapter 189, Laws of 1984 and RCW 18.11.210;

(18) Section 1, chapter 205, Laws of 1982 and RCW 18.11.900;

(19) Section 19, chapter 205, Laws of 1982 and RCW 18.11.910;

(20) Section 20, chapter 205, Laws of 1982 and RCW 18.11.920;

(21) Section 1, chapter 239, Laws of 1953 and RCW 18.12.010;

(22) Section 2, chapter 239, Laws of 1953 and RCW 18.12.020;

(23) Section 3, chapter 239, Laws of 1953 and RCW 18.12.030;

(24) Section 7, chapter 239, Laws of 1953 and RCW 18.12.040;

(25) Section 4, chapter 239, Laws of 1953 and RCW 18.12.050;

(26) Section 5, chapter 239, Laws of 1953 and RCW 18.12.060;

(27) Section 6, chapter 239, Laws of 1953 and RCW 18.12.070;

(28) Section 8, chapter 239, Laws of 1953 and RCW 18.12.080;

(29) Section 19, chapter 239, Laws of 1953 and RCW 18.12.090;

(30) Section 14, chapter 239, Laws of 1953 and RCW 18.12.100;

(31) Section 16, chapter 239, Laws of 1953 and RCW 18.12.110;

(32) Section 17, chapter 239, Laws of 1953 and RCW 18.12.120;

(33) Section 9, chapter 239, Laws of 1953 and RCW 18.12.130;

(34) Section 10, chapter 239, Laws of 1953 and RCW 18.12.140;

(35) Section 11, chapter 239, Laws of 1953 and RCW 18.12.150;

(36) Section 12, chapter 239, Laws of 1953 and RCW 18.12.160;

(37) Section 13, chapter 239, Laws of 1953 and RCW 18.12.170;

(38) Section 15, chapter 239, Laws of 1953 and RCW 18.12.180;

(39) Section 18, chapter 239, Laws of 1953 and RCW 18.12.190;

(40) Section 20, chapter 239, Laws of 1953 and RCW 18.12.200; and

(41) Section 21, chapter 239, Laws of 1953 and RCW 18.12.900.

NEW SECTION. Sec. 11. Sections 1 through 7 of this act shall constitute a new chapter in Title 19 RCW.

NEW SECTION. Sec. 12. If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.

NEW SECTION. Sec. 13. This act shall take effect July 1, 1986.