Chapter SPS 125

Chapter SPS 125

MAINTENANCE OF RECORDS

SPS 125.01   Authority.

SPS 125.02   Definition.

SPS 125.025   Use of computers.

SPS 125.03   Account summary sheet for registrants not maintaining a trust account.

SPS 125.035   Trust account required.

SPS 125.04   Type of account.

SPS 125.05   Time of trust account deposit.

SPS 125.06   Opening and closing trust accounts.

SPS 125.07   Trust account designation.

SPS 125.08   Notification of the department regarding trust account.

SPS 125.09   Withdrawal of trust funds.

SPS 125.10   Commingling prohibited.

SPS 125.12   Trust account bookkeeping system.

Ch. SPS 125 Note Note: Chapter RL 125 was renumbered chapter SPS 125 under s. 13.92 (4) (b) 1., Stats., Register November 2011 No. 671.

SPS 125.01 SPS 125.01 Authority. The rules in this chapter are adopted pursuant to ss. 227.11 (2), 480.06, 480.14, 480.16 and 480.18, Stats.

SPS 125.01 History History: Cr. Register, June, 1995, No. 474, eff. 7-1-95.

SPS 125.02 SPS 125.02 Definition. In this chapter, “trust funds” means cash, checks, share drafts, drafts or notes received by an auctioneer or an auction company on behalf of any other person while acting as an auctioneer or auction company for an auction of goods. “Trust funds” does not include proceeds received by an auctioneer or an auction company on behalf of any other person pursuant to an auction in which the written contract under s. 480.14, Stats., requires the registrant to pay the owner or consignor within 24 hours after the auction.

SPS 125.02 History History: Cr. Register, June, 1995, No. 474, eff. 7-1-95; am. Register, July, 1999, No. 523, eff. 8-1-99.

SPS 125.025 SPS 125.025 Use of computers. An auctioneer or an auction company may maintain any records required by this chapter in a computerized system, provided that:

SPS 125.025(1) (1) A backup copy of the bookkeeping records is made on any day on which entries are made in the computerized bookkeeping system. The backup copy shall be made on a disk or other medium which is separate and distinct from that on which the source documents reside.

SPS 125.025(2) (2) All records which are not maintained as written paper records are capable of being immediately converted to written paper records and immediately made available without charge to the department for the purposes of department audit or investigation.

SPS 125.025 History History: Renum. from RL 125.12 and am. (intro.), Register, July, 1999, No. 523, eff. 8-1-99.

SPS 125.03 SPS 125.03 Account summary sheet for registrants not maintaining a trust account. An auctioneer or auction company that is not required to maintain a trust account shall maintain an account summary sheet which shows the receipts, deposits, expenses and disbursements of each individual auction.

SPS 125.03 Note Note: This provision applies only to registrants not required to maintain a trust account. Registrants for whom a trust account is required must use the trust account bookkeeping system described in s. SPS 125.12.

SPS 125.03 History History: Cr. Register, June, 1995, No. 474, eff. 7-1-95; r. and recr., Register, July, 1999, No. 523, eff. 8-1-99.

SPS 125.035 SPS 125.035 Trust account required. An auctioneer or auction company shall maintain a trust account when the registrant receives and holds auction funds which are not disbursed to the owner or consignor under a written contract under s. 480.14, Stats., within 24 hours after the auction.

SPS 125.035 History History: Cr. Register, July, 1999, No. 523, eff. 8-1-99.

SPS 125.04 SPS 125.04 Type of account. An auctioneer or auction company may place trust funds in an interest-bearing or non-interest-bearing account, provided that none of the interest inures to the benefit of the auctioneer or auction company.

SPS 125.04 History History: Cr. Register, June, 1995, No. 474, eff. 7-1-95.

SPS 125.05 SPS 125.05 Time of trust account deposit. An auctioneer or auction company shall deposit trust funds in a trust account within 48 hours after receipt by the auctioneer or auction company.

SPS 125.05 History History: Cr. Register, June, 1995, No. 474, eff. 7-1-95.

SPS 125.06 SPS 125.06 Opening and closing trust accounts.

SPS 125.06(1) (1) The department may not require an auctioneer or auction company to open a trust account before the auctioneer or auction company receives trust funds which must be deposited, unless the department finds, in a specific case, that an earlier opening of an account is needed in order to assure compliance with this chapter.

SPS 125.06(2) (2) An auctioneer or auction company may close a trust account when no trust funds remain in the auctioneer’s or auction company’s possession.

SPS 125.06 History History: Cr. Register, June, 1995, No. 474, eff. 7-1-95.

SPS 125.07 SPS 125.07 Trust account designation. An auctioneer or auction company shall:

SPS 125.07(1) (1) Include the words “trust account” in the name of the trust account maintained by the auctioneer or auction company.

SPS 125.07(2) (2) Imprint the name of the auctioneer or auction company on the trust account checks, share drafts or drafts.

SPS 125.07(3) (3) Designate the account with the name appearing on the auctioneer’s or auction company’s registration certificate or with a trade name submitted to the department under s. SPS 121.07.

SPS 125.07 History History: Cr. Register, June, 1995, No. 474, eff. 7-1-95; correction in (3) made under s. 13.92 (4) (b) 7., Stats., Register November 2011 No. 671.

SPS 125.08 SPS 125.08 Notification of the department regarding trust account.

SPS 125.08(1) (1) An auctioneer or an auction company shall provide the department with the name and number of every trust account maintained by the auctioneer or auction company and the name of the depository institution in which the auctioneer or auction company holds each trust account. The auctioneer or auction company shall provide this notification to the department on a form prepared by the department no later than 10 days after opening a trust account. The auctioneer or auction company shall authorize representatives of the department to examine and audit all of the auctioneer’s or auction company’s trust accounts.

SPS 125.08(2) (2) An auctioneer or an auction company shall obtain the certification of every depository institution in which the auctioneer or auction company maintains a trust account, in which the depository institution attests to the existence of the account and consents to the examination and audit of the account by a duly authorized representative of the department.

SPS 125.08 Note Note: A Consent to Examine and Audit Auctioneer Trust Account form may be obtained from the department located at 1400 East Washington Avenue, P.O. Box 8935, Madison, Wisconsin 53708.

SPS 125.08(3) (3) An auctioneer or auction company shall notify the department no later than 10 days after a change has been made to an auction trust account name, auction trust account number or depository institution name. The notification shall be provided on a form prepared by the department.

SPS 125.08 Note Note: Forms may be obtained from the department at 1400 East Washington Avenue, P. O. Box 8935, Madison, Wisconsin 53708.

SPS 125.08(4) (4) An auctioneer or auction company shall notify the department no later than 10 days after an auction trust account has been closed. This notification shall be made in written correspondence to the department.

SPS 125.08 History History: Cr. Register, June, 1995, No. 474, eff. 7-1-95; cr. (3) and (4), Register, July, 1999, No. 523, eff. 8-1-99.

SPS 125.09 SPS 125.09 Withdrawal of trust funds. An auctioneer or auction company shall withdraw funds to reimburse the auctioneer or auction company for expenses incurred and commissions and fees earned by the auctioneer or auction company within the 30 days specified in s. 480.14 (3), Stats., or as otherwise provided by the terms of a contract.

SPS 125.09 History History: Cr. Register, June, 1995, No. 474, eff. 7-1-95.

SPS 125.10 SPS 125.10 Commingling prohibited.

SPS 125.10(1) (1) Except as provided in subs. (2) and (3), an auctioneer or an auction company may not commingle the auctioneer’s or auction company’s personal or company funds which are not trust funds in a trust account maintained pursuant to this chapter.

SPS 125.10(2) (2) An auctioneer or auction company may place personal or company funds in a trust account under the following conditions:

SPS 125.10(2)(a) (a) Funds equal to the amount of any checks received by the auctioneer or auction company on behalf of an owner or consignor when such funds are deposited by the auctioneer to cover potential or actual “non-sufficient funds” checks received from purchasers.

SPS 125.10(2)(b) (b) Funds sufficient to cover service charges relating to the trust account.