SENATE BILL REPORT

SHB 1221

BYHouse Committee on Commerce & Labor (originally sponsored by Representatives McLean, Vekich, Nealey, P. King, Todd and Silver)

Easing licensing requirements for vehicle auctioneers.

House Committe on Commerce & Labor

Senate Committee on Economic Development & Labor

Senate Hearing Date(s):March 22, 1989; March 27, 1989

Majority Report:  Do pass as amended.

      Signed by Senators Lee, Chairman; Anderson, Vice Chairman; McMullen, Murray, Saling, Smitherman, Williams.

Senate Staff:Steve Boruchowitz (786-7429)

                  March 27, 1989

AS REPORTED BY COMMITTEE ON ECONOMIC DEVELOPMENT & LABOR, MARCH 27, 1989

BACKGROUND:

Persons selling vehicles, including auctioneers, must obtain a vehicle dealer's license.  To obtain a dealer's license, an applicant must maintain an "established place of business," including an office in a commercial building, a display area, and a permanently affixed exterior sign.  A temporary subagency license is required to sell a vehicle at a location other than the principal place of business.  A vehicle dealer must also obtain a license for each classification of vehicle sold.  There are separate bonding requirements for each of these classifications.

SUMMARY:

A separate auction company license category is established.  An auction company sells vehicles only at auction and is exempt from obtaining temporary subagency licenses.

A place of business requirement is established for auction companies in lieu of the "established place of business" requirement for other vehicle dealers.  Auction companies shall maintain records and files necessary to do business, a telecommunication system, and office facilities within the state.

An auction company may sell mobile homes and travel trailers, motor vehicles, or miscellaneous vehicles at auction under a motor vehicle dealer's license.

A surety bond of $15,000 is required.  The bond must cover all vehicle sales in the state.

Appropriation:    none

Revenue:    none

Fiscal Note:      available

SUMMARY OF PROPOSED SENATE AMENDMENTS:

A definition of "auction" is added, consistent with other chapters of statute.

The definition of "auction company" is changed to exclude those who only manage auctions.

It is clarified that provisions of the bill do not apply to auction companies that sell only on-site or only sell their owned inventory.

Auction companies selling vehicles shall report the location of the auction to the Department of Licensing three days in advance.

Wording for surety bond requirements for auction companies is clarified.

Senate Committee - Testified: Joe Daniels, Keith Harris, Washington State Auctioneer Association (pro); Heather Hamilton, Department of Licensing