February 1, 2005, Introduced by Rep. Taub and referred to the Committee on Regulatory Reform.
A bill to amend 1955 PA 224, entitled
"An act to regulate sales at public auction; to provide for the
issuing of licenses; and to prescribe penalties for violations of
the provisions of this act,"
by amending sections 1, 2, 3, 4, 5, 6, 7, 9, and 10 (MCL 446.51,
446.52, 446.53, 446.54, 446.55, 446.56, 446.57, 446.59, and 446.60)
and by adding sections 1a and 5a.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec.
1. It shall be unlawful for any person, firm or
corporation
to A person shall not sell,
dispose of, or offer any
merchandise for sale at public auction at any place outside
the
limits
of any city or village in the state of Michigan within
the
limits of any township in this state, or within the limits of any
city
or village in the this
state of Michigan that has not by
ordinance
provided for the licensing of sales by auction, any new
merchandise
that is not a city or village described in section
5(2), unless such the
person, firm or corporation, and the
owners
of such the merchandise , if it is not owned by the
vendors,
shall have first secured that person, has obtained a
license
as herein provided under and shall have complied with
the
regulations hereinafter set forth this act.
Sec. 1a. This act shall be known and may be cited as the
"public auction licensing act".
Sec.
2. Any person, firm or corporation desiring such license
shall,
at At least 10 days prior
to such before a proposed
auction
sale, file a person
seeking a license under this act
shall
file an application with the township
clerk of the
township
wherein it is proposed to hold such city, village, or
township
where the person proposes to hold the
auction sale. , an
application
in writing duly verified by the person, firm or
corporation
proposing to sell, dispose of or offer for sale any new
merchandise
at public auction, which the
application shall state
the
following facts include all of the following information:
(1)
The name, residence and postoffice address of the person,
firm
or corporation making the application, and if a firm or
corporation,
the name and address of the members of the firm or
officers
of the corporation, as the case may be;
(a) The name and street address of the applicant and the name
and street address of 1 of the following, if applicable:
(i) If the applicant is a corporation, its officers and
directors.
(ii) If the applicant is an association, its officers and
directors.
(iii) If the applicant is a partnership, its partners.
(iv) If the applicant is a limited liability company, its
manager or managers.
(v) If the applicant is any other legal entity, its manager or
other person designated to control the operation of that legal
entity.
(b)
(2) The name , residence and postoffice and street
address
of the auctioneer who will conduct such the auction sale.
;
(c) (3)
A detailed inventory and
description of all such
new
merchandise to be offered for sale
at such the auction and a
valuation
thereof; of the
merchandise.
(d) (4) A statement as to whether or
not the a sale at
the public auction shall be is
with or without reservation.
Sec.
3. (1) At the time of filing said application, and as
a
part
thereof an application described in section 2, the applicant
shall
file and deposit with the township clerk a bond, with
sureties
to be approved by the township board, in the penal sum of
furnish a surety bond to the city, village, or township clerk
issued by a surety approved by the clerk. The amount of the surety
bond must equal or exceed 2 times the value of the merchandise
proposed
to be offered for sale at such the auction as shown by
the
inventory filed. , running to The surety bond shall run to
the people of the state of Michigan and for the use and benefit of
any
purchaser of any merchandise at such the auction who might
have
a cause for action of any nature arising from or out of such
the auction sale against the auctioneer or applicant. ;
the The
bond
to be further conditioned on shall
also cover the payment by
the
applicant of all taxes that may be payable by, or due from,
the
applicant to the state of Michigan, or any department or
subdivision
thereof, the payment of any and
fines that may be
assessed
by any court may assess against the applicant or
auctioneer
for violation of the provisions of this act. ,
and
the
satisfaction of all causes of action commenced within 1 year
from
date of such auction sale and arising therefrom: Provided,
however,
That the The
aggregate liability of the surety for all
said
taxes, fines, and
causes of action shall in no event not
exceed
the sum of such amount
of the bond.
(2) In
such bond a surety bond
provided under subsection
(1), the applicant and the surety shall appoint the city, village,
or township clerk of the township in which such
bond is filed, as
the
agent of the applicant and the surety for the service of
process.
In the event of such service , the agent on whom such
service
is made under this subsection, the city, village, or
township clerk who is served shall, within 5 days after the
service, mail by ordinary mail a true copy of the process served
upon
him or her to each party for whom he is on whose behalf he
or
she was served, addressed to the last
known address of such
that party. Failure to so mail said the
copy shall not,
however,
of a process under this subsection does not affect the
a court's jurisdiction.
(3) Such
bond A surety bond provided under subsection (1)
shall contain the consent of the applicant and surety that the
circuit
court of the county or the justice court of the township
wherein
in which the application and
bond is filed shall have
has jurisdiction of all actions within the
jurisdiction of the
respective
courts against the applicant or
surety , or both,
arising
out of said the sale.
(4) The
This state of Michigan,
or any a subdivision
thereof
of this state, or any a
person having that has a cause
of
action against the an applicant arising out of the sale of
such
new merchandise , may
join the applicant and the surety on
such
bond a surety bond provided under subsection (1) in the same
action. ,
or may in such action sue either such applicant or the
surety
alone.
Sec.
4. At the time of filing said an application and surety
bond under this act, the applicant shall pay to the city, village,
or township clerk a license fee in the sum of
$25.00 of $100.00
for
each day it is supposed to hold such the applicant proposed
holding
the auction sale as shown by the
application for such the
license.
Sec.
5. (1) Upon the filing of such application and after
the
applicant
has Subject to subsection (2), if an applicant has filed
an
application under this act and fully complied
with all the
provisions
of this act, the township
board, by the city,
village,
or township clerk , with whom the application was filed
shall
issue to the applicant a license authorizing the holding of
such
the auction sale as proposed
in said the application. Such
The license shall not be is not
transferable , and shall be
is valid only in the city, village, or township
where issued. ,
and
shall not be valid in any village which has enacted an
ordinance
providing for the licensing of sales by auction.
(2) If a city or village has enacted an ordinance providing
for the licensing of sales by auction and the ordinance provides
the same or more restrictive requirements for the regulation of
public auctions than this act, a license issued under this act is
not valid in that city or village.
Sec. 5a. (1) The applicant shall post a copy of the
application for a license to conduct a sale under this act,
including the inventory filed with the application, in a
conspicuous place in the sales room or place where the sale is
conducted, but the copy does not need to show the purchase price of
the goods. The applicant shall attach a duplicate copy of the
license to the front door of the premises where the sale is
conducted in such a manner that it is clearly visible from the
street.
(2) Any advertisement or announcement published in connection
with a sale shall conspicuously show on its face the license number
and the date of its expiration, the name and business address of
the applicant, and the applicant's state sales tax number.
Sec.
6. Within 10 days after the last day of said an
auction
subject to this act, the applicant shall file in duplicate with the
city,
village, or township board clerk
a listing list of all
merchandise
sold at such the auction and the prices received
therefor,
together with and a
detailed inventory list of all
merchandise
unsold at the close of such the auction. sale. The
city,
village, or township clerk shall ,
immediately after
receiving
such listing of sales, forward a
copy thereof of the
lists to the department of revenue treasury.
Sec.
7. "New merchandise" as used in this act shall mean all
merchandise
not previously sold at retail. "Auction sale" as As
used
in this act, shall mean the "auction sale" means offering
for
sale or selling of personal property to the highest bidder,
or
offering for sale or selling of personal property at a high
price
and then offering the same that
property at successive
lower prices until a buyer is secured.
Sec.
9. The provisions of this act shall not extend to the
This act does not apply to any of the following:
(a)
A sale at public auction of livestock,
farm machinery, or
farm produce, or used homestead goods or other items commonly sold
at
farm or homestead sales. , or to auction sales by individuals
of
new
(b) An auction sale by an individual of merchandise , which
was
assessed for payment of personal property tax in the taxes
of
this state of Michigan or is
of replacement stock of
merchandise
inventory which was assessed for
payment of personal
property
tax taxes in the county in which where
the sale is to
be
had, and to auction sales under a mortgage foreclosure or under
the
direction of a court or court officers of such sales as may be
required
by law proposed.
The owner of the personal property
specified
in this section described in this subdivision may
furnish
the person or persons conducting the public auction with
a
statement that the proceeds of
the sale of the property set
forth
listed in the statement has
been assessed as are for
payment
of personal property in the taxes of this state, of
Michigan
or that it has been purchased as replacement for property
that
has been assessed, and the
possession of such a that
statement
shall absolve relieves the person or persons to whom
it
is given conducting the auction from all any liability under
the
provisions of this act.
(c) An auction sale in a mortgage foreclosure or a sale made
pursuant to court order in a foreclosure proceeding.
(d) A regularly scheduled auction sale of motor vehicles held
at a permanent location and conducted by an auctioneer who has
complied with sections 26 to 35 of 1846 RS 21, MCL 446.26 to
446.35.
Sec.
10. (1) Any person, firm or corporation found to be in
violation
of A person who violates this
act shall be is guilty
of
a misdemeanor and may be punished by a fine not to exceed
$100.00,
or punishable by imprisonment in
the county jail not to
exceed
90 days, or by both fine and imprisonment for not more than
93 days or a fine of not more than $10,000.00, or both.
(2) Whether the person seeks damages or has an adequate remedy
at law, or whether the attorney general or a prosecuting attorney
takes action under subsection (1), a person may bring an action to
do any of the following:
(a) Obtain a declaratory judgment that a practice is in
violation of this act.
(b) Enjoin by temporary or permanent injunction a person who
is engaging or is about to engage in a practice in violation of
this act.
(3) A person who suffers loss as a result of a violation of
this act may bring an individual or a class action to recover
actual damages or $250.00, whichever is greater, for each day the
violation occurs, and reasonable attorney fees.