SENATE BILL REPORT

SB 5561

BYSenators Warnke, Barr, Smitherman, Lee, Wojahn and Newhouse

Exempting sole proprietorships and partnerships which post a bond or other security from certain requirements for auction companies.

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)

                  March 5, 1987

AS REPORTED BY COMMITTEE ON COMMERCE & LABOR, MARCH 5, 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:

The definition of auction company excludes all sole proprietorships and partnerships owned by licensed auctioneers.

EFFECT OF PROPOSED SUBSTITUTE:

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