PRINTER'S NO. 1134
No. 987 Session of 1989
INTRODUCED BY HOLL AND STAPLETON, MAY 31, 1989
REFERRED TO CONSUMER PROTECTION AND PROFESSIONAL LICENSURE, MAY 31, 1989
AN ACT 1 Establishing the Auctioneer Recovery Fund; and making a repeal. 2 The General Assembly of the Commonwealth of Pennsylvania 3 hereby enacts as follows: 4 Section 1. Short title. 5 This act shall be known and may be cited as the Auctioneer 6 Recovery Fund Act. 7 Section 2. Establishment of fund. 8 There is hereby established the Auctioneer Recovery Fund for 9 the purposes hereinafter set forth in this act. 10 Section 3. Funding. 11 An auctioneer, apprentice auctioneer, auction company or 12 auction house licensee entitled to renew his license on or after 13 February 1, 1989, shall, when so renewing his license, pay in 14 addition to the applicable license fee a further fee of $50 15 which shall be paid and credited to the Auctioneer Recovery 16 Fund. Thereafter, any person, upon receiving his initial 17 auctioneer's license, shall, in addition to all fees, pay into
1 the Auctioneer Recovery Fund a sum of $50. If, at the 2 commencement of any biennial renewal period beginning in 1989 3 and thereafter, the balance of the fund is less than $100,000, 4 the State Board of Auctioneer Examiners may assess an additional 5 fee, in addition to the renewal fee, against each licensee in an 6 amount, not to exceed $25, which will yield revenues sufficient 7 to bring the balance of the fund to $100,000. All said fees 8 shall be paid into the State Treasury and credited to the 9 Auctioneer Recovery Fund, and said deposits shall be allocated 10 solely for the purposes of the fund as provided in this act. The 11 fund shall be invested, and interest and dividends shall accrue 12 to the fund. The bonding requirements of section 13 of the act 13 of December 22, 1983 (P.L.327, No.85), known as the Auctioneer 14 and Auction Licensing Act, shall not apply to a licensee who has 15 paid the required fee into the Auctioneer Recovery Fund. 16 Section 4. Application for recovery from fund. 17 (a) Procedure following judgment.--When any aggrieved person 18 obtains a final judgment in any court of competent jurisdiction 19 against any person licensed under the act of December 22, 1983 20 (P.L.327, No.85), known as the Auctioneer and Auction Licensing 21 Act, upon grounds of fraud, misrepresentation or deceit with 22 reference to any transaction for which a license is required 23 under the Auctioneer and Auction Licensing Act and the cause of 24 action occurred on or after the effective date of this act, the 25 aggrieved person may, upon termination of all proceedings, 26 including reviews and appeals, file an application in the court 27 in which the judgment was entered for an order directing payment 28 out of the Auctioneer Recovery Fund of the amount unpaid upon 29 the judgment. 30 (b) Application requirements.--The aggrieved person shall be 19890S0987B1134 - 2 -
1 required to show: 2 (1) That he is not a spouse of the debtor or the 3 personal representative of said spouse. 4 (2) That he has obtained a final judgment as set out in 5 this section. 6 (3) That all reasonable personal acts, rights of 7 discovery and such other remedies at law and in equity as 8 exist have been exhausted in the collection thereof. 9 (4) That he is making said application no more than one 10 year after the termination of the proceedings, including 11 reviews and appeals in connection with the judgment. 12 (c) Payments from fund.--When there is an order of the court 13 to make payment or a claim is otherwise to be levied against the 14 fund, such amount shall be paid to the claimant in accordance 15 with the limitations contained in this section. Notwithstanding 16 any other provisions of this section, the liability of that 17 portion of the fund allocated for the purpose of this act shall 18 not exceed $20,000 for any one claim and shall not exceed 19 $100,000 per licensee. If the $100,000 liability of the 20 Auctioneer Recovery Fund as provided herein, is insufficient to 21 pay in full claims adjudicated valid of all aggrieved persons 22 against any one licensee, such $100,000 shall be distributed 23 among them in such ratio that the respective claims of the 24 aggrieved applicants bear to the aggregate of such claims held 25 valid. If, at any time, the money deposited in the Auctioneer 26 Recovery Fund is insufficient to satisfy any duly authorized 27 claim or portion thereof, the State Board of Auctioneer 28 Examiners shall, when sufficient money has been deposited in the 29 fund, satisfy such unpaid claims or portions thereof in the 30 order that such claims or portions thereof were originally 19890S0987B1134 - 3 -
1 filed, plus accumulated interest at the rate of 6% a year. 2 (d) Joinder.--Upon petition of the State Board of Auctioneer 3 Examiners, the court may require all claimants and prospective 4 claimants against one licensee to be joined in one action, to 5 the end that the respective rights of all such claimants to the 6 Auctioneer Recovery Fund may be equitably adjudicated and 7 settled. 8 (e) License suspension and reimbursement of fund.--Should 9 the State Board of Auctioneer Examiners pay from the Auctioneer 10 Recovery Fund any amount in settlement of a claim as provided 11 for in this act against a licensee, the license of that person 12 shall automatically suspend upon the effective date of the 13 payment thereof by the State Board of Auctioneer Examiners. No 14 licensee shall be granted reinstatement until he has paid in 15 full, plus interest at the rate of 10% a year, the amount paid 16 from the Auctioneer Recovery Fund. The State Board of Auctioneer 17 Examiners may use any remedy available to it at law or in equity 18 against a licensee or the assets of a licensee in order to 19 reimburse the Auctioneer Recovery Fund for any amount paid from 20 the fund in settlement of a claim against the licensee. 21 (f) Permitted requests.--In order to promote the public 22 safety and welfare and reduce the incidence of transactions 23 leading to claims against the Auctioneer Recovery Fund, the 24 State Board of Auctioneer Examiners may include in its annual 25 budget request, funds for the following purposes: 26 (1) To carry out the advancement of education and 27 research in the auctioneering profession for the purpose of 28 improving the practice of auctioneering in this Commonwealth. 29 (2) To underwrite educational seminars, training centers 30 and other forms of educational projects for the use of 19890S0987B1134 - 4 -
1 licensees for the purpose of improving the practice of 2 auctioneering in this Commonwealth. 3 (3) To sponsor, contract for and underwrite any and all 4 other educational and research projects of a similar nature 5 for the purpose of improving the practice of auctioneering in 6 this Commonwealth. 7 (4) To cooperate with associations of auctioneers and 8 any and all other groups for the enlightenment and 9 advancement of the auctioneer profession in this 10 Commonwealth. 11 Section 5. Repeal. 12 Section 13 of the act of December 22, 1983 (P.L.327, No.85), 13 known as the Auctioneer and Auction Licensing Act, is repealed 14 insofar as it is inconsistent with this act. 15 Section 6. Effective date. 16 This act shall take effect January 31, 1990. E19L63CHF/19890S0987B1134 - 5 -