WSR 98-13-027
PROPOSED RULES
DEPARTMENT OF LICENSING
[Filed June 8, 1998, 10:01 a.m.]
Original Notice.
Preproposal statement of inquiry was filed as WSR 98-09-073.
Title of Rule: WAC 308-11-010 Definitions, 308-11-030 Auctioneer fees, 308-11-035 Renewal of registration, 308-11-050 Surety bond or trust account required, 308-11-120 Inspection and audit, and 308-11-130 Suit or complaint notification.
Purpose: WAC 308-11-010, to repeal rule which is a duplicate of chapter 18.11 RCW; WAC 308-11-030, to defray cost of administration of the auctioneer program and assist in reducing the revenue deficit; WAC 308-11-035, to coordinate the expiration dates on renewals for individuals and companies. Both will now expire one year from date of issue; WAC 308-11-050, to delete all references for requirements that are covered by RCW, thereby omitting duplication; WAC 308-11-120, to revise and simplify language to make requirements more understandable to the licensees. Revision also eliminates duplication of requirements found in the RCW; and WAC 308-11-130, to correct the address of the business and professions division, where complaints and notification must be sent.
Other Identifying Information: Fee adjustments are within limits of Initiative 601 and fiscal growth factor. Other changes are minor and of a housekeeping nature.
Statutory Authority for Adoption: RCW 18.11.060, 43.24.086, and 43.135.055.
Statute Being Implemented: RCW 43.24.086.
Summary: The auctioneer program is adjusting fees in order to be self-supporting per RCW 43.24.086. Following a rules review meeting, attended by interested licensees, it was determined that some of the rules needed clarification and some were duplications of the RCW and will be repealed.
Reasons Supporting Proposal: The fee increase will assist in reducing the revenue deficit in the program and other changes will simplify/clarify requirements for licensure and renewal.
Name of Agency Personnel Responsible for Drafting, Implementation and Enforcement: Teri Osborn, Department of Licensing, Olympia, Washington, (360) 753-1061.
Name of Proponent: Department of Licensing, Business and Professions Division, P.O. Box 9649, Olympia, WA 98507-9649, governmental.
Rule is not necessitated by federal law, federal or state court decision.
Explanation of Rule, its Purpose, and Anticipated Effects: WAC 308-11-010, serves no purpose, duplication of RCW; WAC 308-11-030, sets the fees required for licensure and renewal. Adjusting fees will give some relief to the revenue deficit; WAC 308-11-035, individual licenses expire on their birthdate and companies on June 30 each year. With the amended rule both licenses will expire one year from the date of issuance; WAC 308-11-050, defines the requirements for bonding and trust accounts, duplication of RCW; WAC 308-11-120, defines the requirements for inspection and audit. Revised for clarity and content; and WAC 308-11-130, updates the address of the program for reporting suit information or complaints.
Proposal Changes the Following Existing Rules: WAC 308-11-010, repealed; WAC 308-11-030, increase of fees; WAC 308-11-035, all licenses expire one year from the date of issuance; WAC 308-11-050, amended rule repeals those portions of the requirements which are duplicate of the RCW; WAC 308-11-120, clarifies the requirements for inspection and audit; and WAC 308-11-130, updates the address of the program for reporting suit information or complaints.
No small business economic impact statement has been prepared under chapter 19.85 RCW. Cost of compliance of the fee increase is below the threshold in the table of minor and negligible impact as defined by the Business Assistance Center's Guide to Facilitating Regulatory Fairness.
RCW 34.05.328 does not apply to this rule adoption. These rules are exempt under RCW 34.05.328 (5)(b)(vi).
Hearing Location: Department of Licensing, Business and Professions Division, Conference Room 1, 405 Black Lake Boulevard, Olympia, WA 98501, on July 22, 1998, at 9:00 a.m.
Assistance for Persons with Disabilities: Contact Teri Osborn by July 14, 1998, TDD (360) 526-2788, or (360) 753-1061.
Submit Written Comments to: Teri Osborn, Department of Licensing, Business and Professions Division, Auctioneer Section, P.O. Box 9649, Olympia, WA 98507-9649, FAX (360) 664-2550, by July 14, 1998.
Date of Intended Adoption: July 23, 1998.
June 4, 1998
Mary Jelvik
Administrator
OTS-2238.2
AMENDATORY SECTION (Amending WSR 90-06-052, filed 3/2/90, effective 4/2/90)
WAC 308-11-030 Auctioneer fees. The following fees shall
be charged by the ((professional licensing)) business and
professions division of the department of licensing:
| Title of Fee | Fee | |
| Auctioneer: | ||
| Initial application | (( $114.00 | |
| Renewal | (( 114.00 | |
| Late renewal penalty | (( 104.00 | |
| Duplicate license | 15.00 | |
| Certification | 25.00 | |
| Auction company: | ||
| Initial application | (( 260.00 | |
| Renewal | (( 260.00 | |
| Late renewal penalty | (( 208.00 | |
| Duplicate license | 15.00 | |
[Statutory Authority: RCW 43.24.086. 90-06-052, § 308-11-030, filed 3/2/90, effective 4/2/90; 87-10-028 (Order PM 650), § 308-11-030, filed 5/1/87. Statutory Authority: RCW 18.11.060. 86-21-127 (Order PM 622), § 308-11-030, filed 10/22/86. Statutory Authority: 1983 c 168 § 12. 83-17-031 (Order PL 442), § 308-11-030, filed 8/10/83. Formerly WAC 308-11-001.]
AMENDATORY SECTION (Amending Order PM 701, filed 12/23/87)
WAC 308-11-035 Renewal of registration. (1) An auctioneer
license will be issued to an applicant, provided ((the)) all
requirements are met for licensure ((are met, with an expiration
date to be the licensee's next birth anniversary date)). An
auctioneer license will expire one year from the date of
issuance.
(2) An auction company license will be issued, provided all
requirements are met for licensure((, which)). The auction
company license will expire ((on June 30 of each year)) one year
from the date of issuance.
(3) An application for a license renewal received after the date of expiration will require the payment of the penalty fee in addition to the renewal fee.
[Statutory Authority: RCW 18.11.060 and 18.11.200. 88-01-122 (Order PM 701), § 308-11-035, filed 12/23/87. Statutory Authority: RCW 18.11.200. 86-21-127 (Order PM 622), § 308-11-035, filed 10/22/86.]
AMENDATORY SECTION (Amending Order PM 766, filed 11/9/88)
WAC 308-11-050 Surety bond or trust account required. (1) As required by chapter 18.11 RCW, the amount of the surety bond or other security in lieu of the bond to be filed and maintained for an auctioneer license shall be five thousand dollars.
(2)(((a))) The amount of the surety bond or other security
in lieu of the bond to be filed and maintained for an auction
company license shall be based upon the value of the gross sales
during the previous calendar year according to the following
scale:
| GROSS SALES | BOND/ SECURITY
AMOUNT | |||||||
| $ | 0.00 | to | $ | 24,999.99 | $ | 5,000.00 | ||
| $ | 25,000.00 | to | $ | 49,999.99 | $ | 10,000.00 | ||
| $ | 50,000.00 | to | $ | 99,999.99 | $ | 15,000.00 | ||
| $ | 100,000.00 | to | $ | 499,999.99 | $ | 20,000.00 | ||
| $ | 500,000.00 | & | Above | $ | 25,000.00 | |||
(((b))) (3) All ((licensed)) auction companies ((shall
annually on June 30,)) upon application or with license renewal,
shall submit a financial certification affidavit on forms
provided by the department. ((The information reported will form
the basis for the department's approval of the auction company's
bond or other security amount each year. A company whose sales
increases have placed it in a higher category in the above scale
will be required to increase its surety bond or security amount
accordingly, and file the increased bond or proof of security
with the financial certification affidavit form. A company whose
sales have decreased may adjust its bond or security amount in
accordance with the scale. New license applicants will be
provided with financial certification affidavit forms for estimating the sales for the calendar year.
(3))) (4) Each licensee must maintain such a surety bond, or
other security in lieu of a bond, in an active status at all
times during the period of licensure.
(((4)(a) No bond filed shall be approved unless it expressly
provides that it will be effective for one year following the
effective date of its cancellation or termination, whether
because of expiration, suspension, or revocation of the license,
or otherwise, as to any covered act or acts and omission or
omissions of the licensee occurring on, or prior to, the
effective date of cancellation or termination.
(b) No other security used in lieu of a bond shall satisfy
the requirements of chapter 18.11 RCW, unless by the express
terms of the security the security shall remain open and active
for not less than one year following the effective date of its
cancellation or termination, whether because of the expiration,
suspension or revocation, or otherwise, as to any covered act or
acts or omission or omissions of the licensee occurring on, or
prior to, the effective date of cancellation or termination.
(c) Subject to the requirement of (b) of this subsection,
each surety bond or other security used in lieu of a bond shall
be deemed terminated upon the expiration or revocation of the
license in connection with which the bond was issued, or the
other security in lieu of a bond was created: Provided, That for
the purposes only of this section a license shall not be deemed
expired, suspended, or revoked so long as the licensee may
continue to act as an auctioneer pursuant to the provisions of
chapter 34.04 RCW or any court order issued pursuant thereto.))
[Statutory Authority: RCW 18.11.121 and 18.11.200. 88-23-034 (Order PM 766), § 308-11-050, filed 11/9/88. Statutory Authority: RCW 18.11.200. 86-21-127 (Order PM 622), § 308-11-050, filed 10/22/86. Statutory Authority: RCW 18.11.120 and 18.11.200. 85-03-045 (Order PL 506), § 308-11-050, filed 1/11/85. Statutory Authority: RCW 42.24.085 [43.24.085], 1982 c 205, §§ 3, 9, 10 and 18. 82-23-023 (Order PL 413), § 308-11-050, filed 11/9/82.]
AMENDATORY SECTION (Amending Order PL 506, filed 1/11/85)
WAC 308-11-120 Inspection and audit. The following shall be subject to inspection and audit at any reasonable time, with or without notice upon demand by the department:
(1) All records required to be maintained by an auctioneer
by chapter 18.11 RCW, or ((these rules, together with any)) WAC
308-11-100;
(2) Other business or other types of records of the
auctioneer or auction company which may be related to activity as
an auctioneer or auction company or necessary to ((a full
understanding of)) understand such records((, and));
(3) Any auction mart or other premise used ((for the purpose
of conducting)) to conduct an auction((, together with));
(4) Any personal property which may be the subject of, or
related to, an auction ((shall be subject to inspection and audit
at any reasonable time, with or without notice upon demand by the
department, for the purposes of determining compliance or
noncompliance with the provisions of chapter 18.11 RCW, and these
rules)).
((If records requested by the department are not immediately
available because they are)) (5) Records not physically present
upon the premises at the time the demand is made((, they)) shall
be procured and produced to the department ((as soon as possible,
but in any event)) within twenty-four hours, ((by the licensee.
A reasonable time for the conduct of such inspection and
audit shall be:
(1) If the records or items to be inspected or audited are
located anywhere upon a premise any portion of which is open for
business or to the public (or members and guests), then at any
time the premises are so open, or at which they are usually open;
or
(2) If the records or items to be inspected or audited are
not located upon a premise set out in section (1) above, then any
time)) or within a time approved by the department;
(6) Records physically present upon the premises at the time demand is made shall be inspected or audited at any reasonable time which shall be between the hours of 8:00 a.m. and 5:00 p.m., Monday through Friday.
[Statutory Authority: RCW 18.11.120 and 18.11.200. 85-03-045 (Order PL 506), § 308-11-120, filed 1/11/85. Statutory Authority: RCW 42.24.085 [43.24.085], 1982 c 205, §§ 3, 9, 10 and 18. 82-23-023 (Order PL 413), § 308-11-120, filed 11/9/82.]
AMENDATORY SECTION (Amending WSR 92-13-045, filed 6/11/92, effective 7/12/92)
WAC 308-11-130 Suit or complaint notification. Every
licensee shall, within thirty days after service or knowledge
((thereof)) of, notify the department of any suit or complaint
served or filed in any court of competent jurisdiction, civil or
criminal, in which the subject matter ((thereof,)) involves any
auction or business activity of the defendant; and in which the
subject matter thereof, involves any auction or business activity
of the defendants therein named. The department address is
Business and Professions Division, Auctioneer Section, PO Box
9649, Olympia, Washington 98507-9649. Complaints against others
may also be sent to the above address.
[Statutory Authority: RCW 18.11.200. 92-13-045, § 308-11-130, filed 6/11/92, effective 7/12/92.]
REPEALER
The following section of the Washington Administrative Code is repealed:
WAC 308-11-010 Definitions.