SENATE BILL REPORT

SSB 5561

BYSenate Committee on Commerce & Labor (originally sponsored by Senators Warnke, Barr, Smitherman, Lee, Wojahn and Newhouse)

Eliminating double bonding requirements for auctioneers.

Senate Committee on Commerce & Labor

Senate Hearing Date(s):March 3, 1987; March 5, 1987

Majority Report:  That Substitute Senate Bill No. 5561 be substituted therefor, and the substitute bill do pass.

      Signed by Senators Warnke, Chairman; Anderson, Cantu, Tanner, Vognild, West, Williams, Wojahn.

Senate Staff:Mark McDermott (786-7429)

                  April 10, 1987

House Committe on Commerce & Labor

AS PASSED SENATE, MARCH 18, 1987

BACKGROUND:

An auction company is a sole proprietorship, partnership, corporation or other legal or commercial entity that sells or offers to sell goods or real estate at auction or arranges, sponsors or manages auctions.

Sole proprietorships owned by licensed auctioneers whose gross annual sales do not exceed $25,000 are not auction companies.

SUMMARY:

If an auction company is a sole proprietorship or a partnership, and the sole proprietor or each partner has a bond or security on file with the Department, a separate bond or other security shall not be required as an auction company.

Fiscal Note:      requested

Senate Committee - Testified: Jeff Parsons, Washington Auctioneers Association; Keith Harris, Washington Auctioneers Association

HOUSE AMENDMENT:

If an auction company is a sole proprietorship or a partnership and has a surety bond required for an auction company, an auctioneer bond is not required for the sole proprietor or any partner who is working as an auctioneer for the sole proprietor or partnership.

An auction company is not charged a license fee if it is a sole proprietorship or a partnership owned by an auctioneer or auctioneers each of whom are licensed.