Bill Text: MI HB4766 | 2011-2012 | 96th Legislature | Introduced

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Bill Title: Occupations; auctioneers; reporting of certain presale auction services; provide for and require continuing education for registration renewal. Amends secs. 2907, 2909, 2911 & 2913 of 1980 PA 299 (MCL 339.2907 et seq.).

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2011-11-30 - Referred To Second Reading [HB4766 Detail]

Download: Michigan-2011-HB4766-Introduced.html

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HOUSE BILL No. 4766

 

June 16, 2011, Introduced by Rep. Wayne Schmidt and referred to the Committee on Regulatory Reform.

 

     A bill to amend 1980 PA 299, entitled

 

"Occupational code,"

 

by amending sections 2907, 2909, 2911, and 2913 (MCL 339.2907,

 

339.2909, 339.2911, and 339.2913), as added by 2006 PA 489.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 2907. (1) Except as otherwise provided in section 2909 or

 

2917, the department shall issue a registration as a registered

 

auctioneer to an individual or to the qualifying member of a legal

 

entity who meets all of the following conditions:

 

     (a) Has either 2 years of apprentice experience with a

 

registered auctioneer or proof of graduation from an accredited

 

auction school acceptable to the board and 1 year of apprentice

 

experience with a registered auctioneer. Under both circumstances,

 

the individual shall have

 

     (b) Has actively participated in the conduct of not less than

 

at least 10 auctions. The experience shall be verified by An

 

applicant shall include with the application an affidavit of a

 

registered auctioneer and shall provide that verifies that

 

experience and provides the names and addresses of the parties on

 

whose behalf the auction was held and the dates of the auction.

 

     (c) (b) Has completed an examination as described in section

 

2915.

 

     (d) (c) Is of good moral character.

 

     (2) Beginning 60 days after the effective date of the rules

 

described in subsection (3), the department shall not renew the

 

registration of an individual or a qualifying member of a legal

 

entity under this article unless he or she demonstrates

 

satisfactory completion of the program of continuing education

 

described in subsection (3).

 

     (3) For purposes of subsection (2), the department by rule

 

shall establish a program of continuing education for each

 

individual and each qualifying member of a legal entity registered

 

under this article. The rules promulgated under this subsection

 

shall include all of the following:

 

     (a) A requirement for satisfactory completion of 12 hours of

 

continuing education from an auctioneer continuing education course

 

sponsor approved by the department.

 

     (b) That an individual or qualifying member is not entitled to

 

continuing education credit for any classroom hours required by the

 

department as a condition to his or her initial registration.

 

     (c) That an individual or qualifying member who attends the

 

same continuing education course more than once in the same

 

registration period is entitled to continuing education credit for

 

that course only once.

 

     (d) That the department may verify any information concerning

 

continuing education that is submitted by an individual or

 

qualifying member as evidence supporting the completion of the

 

continuing education requirement and may require that he or she

 

provide information regarding the continuing education hours he or

 

she claims.

 

     (e) That an individual or qualifying member is responsible for

 

retaining evidence to support his or her satisfactory completion of

 

the continuing education requirement for a period of 24 months

 

after the end of the renewal period for which the renewal

 

application was submitted to the department.

 

     Sec. 2909. (1) Notwithstanding section 2907, the The

 

department shall register as an auctioneer, after verification of

 

the experience requirements imposed in this section, an individual

 

who applies not more than 2 years after the effective date of this

 

article the amendatory act that added subsection (3) and submits to

 

the department a completed application and an affidavit attesting

 

to that verifies that he or she had experience in the conduct of

 

auctions for not less than at least 3 years before the effective

 

date of this article.the amendatory act that added subsection (3).

 

     (2) The department shall issue a registration under this

 

section only if the applicant's experience includes conducting 12

 

or more auctions.

 

     (3) An individual eligible for registration under this section

 

is not required to meet the requirements of section 2907.

 

     Sec. 2911. (1) Money paid by any person to a registrant in

 

connection with an auction under this article is considered to be

 

as held in trust for the benefit of the person making that made the

 

payment and the registrant is considered the trustee for the money.

 

     (2) A registrant shall provide a full accounting to a client

 

when a transaction is closed or terminated. The accounting shall

 

include any money given to the registrant for presale auction

 

services.

 

     Sec. 2913. (1) A registered auctioneer shall maintain a

 

regular place of business in this state. If a registered auctioneer

 

maintains more than 1 place of business is maintained in this

 

state, the department shall issue a duplicate registration for each

 

place of business at no additional cost. A regular place of

 

business does not include a location used only as a warehouse.

 

Records required to be kept A registered auctioneer shall keep any

 

records the auctioneer is required to keep under this article shall

 

be kept at that regular place of business.

 

     (2) A registered auctioneer shall not conduct an auction

 

unless a written contract is executed between the auctioneer and

 

the person desiring engaging the auctioneer to provide auction

 

services. and the registered auctioneer. A registrant shall provide

 

a copy of the contract to the client, keep a copy of the contract

 

as part of his or her the registrant's records, and, upon request,

 

make them any of its contracts available to the department for

 

inspection or audit, or both, during normal business hours.

 

     (3) A registrant under this article shall conspicuously post

 

at the regular place of business a copy of the registration issued

 

under this article.

 

     (4) A registrant under this article shall establish a trust

 

account, or other segregated type of account, in the manner

 

described in this section. The registrant shall deposit into the

 

trust account all checks, drafts, negotiable instruments, and cash

 

tendered by 1 or more buyers for the payment of an item sold by

 

auction. The registrant shall make a disbursement relative to a any

 

disbursements related to the sale by auction through that trust

 

account, in the time period and manner described in this section.

 

     (5) A registrant shall not permit an advance payment of money

 

the deposit of any money paid by a customer to be deposited in into

 

the registrant's business or personal account or to be commingled

 

the commingling of that money in any way with funds belonging to

 

the registrant, except as provided in this section. The registrant

 

shall deposit customer the customer's money into a the trust

 

account until the transaction involved is consummated or

 

terminated, within 2 banking days after the auction transaction but

 

not later than 5 days after its receipt it receives the money.

 

     (6) An auctioneer is not required to deposit money given to

 

the auctioneer by a client or other person for presale auction

 

services into a trust account. However, an auctioneer shall provide

 

a complete accounting of all auction service expenses to the client

 

or other person at the closing or termination of the transaction.

 

     (7) (6) The A trust account established under this section is

 

subject to the following requirements:

 

     (a) May It may be an interest bearing account maintained in a

 

depository recognized by the department. Interest accrued shall be

 

allocated as in the manner provided for in the contract between the

 

parties.

 

     (b) Shall It shall designate the registrant as the trustee or

 

custodian of the account.

 

     (c) Shall provide for It shall allow withdrawal of money

 

without previous prior notice and shall not be encumbered in any

 

manner without any encumbrance.

 

     (d) Shall It shall not contain any money of the registrant,

 

except for that the account may contain an amount that is

 

sufficient to pay service charges on the account or to maintain the

 

account when customer money is not on deposit, if that amount not

 

to does not exceed $500.00.

 

     (8) (7) Disbursements A registrant shall make disbursements

 

from the a trust account shall be made only for the following

 

purposes:

 

     (a) Payment as a result of the sale of an item by the

 

registrant pursuant to under the contract.

 

     (b) Refund of an amount to the customer upon on termination of

 

the transaction.

 

     (c) Payment to the registrant of a commission and documented

 

and approved expenses following the consummation of a transaction

 

upon on which a commission is payable to the registrant.

 

     (9) (8) The A registrant shall keep records of money deposited

 

in the a trust account. The records shall show all of the

 

following:

 

     (a) The date of the receipt of the registrant receives the

 

money from a customer, the amount received, and the name of the

 

customer on whose behalf the money was paid.

 

     (b) The purpose for which the money was paid.

 

     (c) The date the money was deposited in the trust account.

 

     (d) The date of disbursement of the money, the purpose of the

 

withdrawal disbursement, and the name of the person to whom the

 

money was paid. upon disbursement.

 

     (e) Any other pertinent information regarding the transaction.

 

     (10) (9) The department and the board may, upon after notice

 

given to a registrant, inspect or audit, or both, the records or

 

other relevant documents required to be kept pursuant to the

 

registrant is required to keep under this section.

 

     (11) (10) A registrant shall create, electronically or

 

otherwise, a cash receipts and disbursements journal and ledgers.

 

The registrant shall maintain separate ledgers are to be maintained

 

separately for each transaction. and The ledgers shall contain the

 

following:

 

     (a) Names The names of both parties to the contract.

 

     (b) Postings A posting of all transactions each transaction.

 

     (c) Date The date of each transaction, in chronological

 

sequence.

 

     (d) Amount Each amount received or disbursed; , or both; the

 

name of party each person giving money; the name of the principal

 

or payee; and the purpose of disbursements each disbursement.

 

     (e) Check numbers of disbursements The check number of each

 

disbursement.

 

     (f) A running balance after each receipt and or disbursement.

 

     (g) Description A description of the property being sold.

 

     (12) (11) A registrant shall create, electronically or

 

otherwise, and maintain a personal money ledger to account for

 

personal money maintained in the trust account. The personal money

 

ledger shall include the following:

 

     (a) Chronological A chronological sequence of funds received

 

and disbursed.

 

     (b) Running A running balance after each receipt and or

 

disbursement.

 

     (c) Receipt postings to include A posting of each receipt of

 

money that includes the date of receipt, the date of deposit, the

 

name of the party giving paying the money, the name of the

 

principal, and the amount received.

 

     (d) Disbursement postings to include A posting of each

 

disbursement that includes the date; the check number, if

 

applicable; the payee; the amount; the purpose; and a running

 

balance after each receipt and or disbursement.

 

     (13) (12) The A registrant shall retain the ledgers and

 

journals , as well as described in subsection (12), and retain all

 

trust account bank statements, deposit tickets, and copies of

 

deposit receipts, canceled checks, and voided checks, shall be

 

maintained for not less than at least 3 years from the date of

 

inception of the records that record or not less than at least 3

 

years from after the consummation or termination of the transaction

 

for which that record was maintained, whichever is later.

 

     (14) (13) A registrant under this article shall maintain

 

written records of each auction sale, including presale auction

 

services related to that auction sale, for a period of not less

 

than at least 3 years from the date of the auction sale, or not

 

less than at least 3 years from after consummation or termination

 

of the transaction for which that record was maintained, whichever

 

is later. The records shall include , but not be limited to, at

 

least all of the following:

 

     (a) Consignment Any consignment receipts.

 

     (b) Bidder Any bidder registrations.

 

     (c) Any documents relating to presale auction services.

 

     (d) (c) Documents Any documents relating to final settlements

 

with consignors.