REGISTERED AUCTIONEERS S.B. 603 & 604 (S-1): FLOOR ANALYSIS
Senate Bill 603 (as reported without amendment)
Senate Bill 604 (Substitute S-1 as reported)
Sponsor: Senator Ron Jelinek
Committee: Economic Development, Small Business and Regulatory Reform
CONTENT
Senate Bill 603 would add Article 28 to the Occupational Code to do the following:
-- Establish registration requirements for auctioneers and related responsibilities of the Department of Labor and Economic Growth (DLEG).
-- Create a Board of Auctioneers and require the Board and DLEG to develop an examination for registration applicants.
-- Require written contracts between registered auctioneers and their clients.
-- Require a registered auctioneer to deposit all funds related to the conduct of an auction in a custodial account separate from the registrant's own funds.
-- Specify that registrants who committed certain acts would be subject to penalties and sanctions under the Code.
-- Require registered auctioneers to maintain written records of auction sales and on employees for at least three years.
Senate Bill 604 (S-1) would amend the State License Fee Act to establish a $50 application fee, a $50 examination fee, and a $200 annual registration fee for auctioneers.
The two bills are tie-barred together.
MCL 339.303a et al. (S.B. 603) Legislative Analyst: J.P. Finet
Proposed MCL 338.2228 (S.B. 604)
FISCAL IMPACT
These bills would require the Department of Labor and Economic Growth to set up a registration program for auctioneers and auction companies, including administering examinations and enforcement for noncompliance. The bills would create a new Board of Auctioneers and set registration standards for the profession. Senate Bill 604 (S-1) also would create a fee structure to offset the costs to the Department for performing these new responsibilities. According to the Department, the cost of regulating the estimated 800 applicants/registrants in the first year would be approximately $169,000, and the revenue that would be generated for the same number under the proposed fee schedule is approximately $205,000 for that year.
Date Completed: 2-9-06 Fiscal Analyst: Elizabeth Pratt
Maria Tyszkiewicz
floor\sb603 Analysis available @ http://www.michiganlegislature.org
This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.
Analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent. sb603&604/0506