By Eric C. Rodenberg SACRAMENTO, Calif. – California auctioneers are beginning to breathe much easier. “We’ve been operating under a dark cloud this year,” says Allen Michaan, president of Michaan’s Auctions in Alameda. “I think we’re finally bringing a little sanity back into the business … I know that sports- and celebrity- signed memorabilia is a problem, but that law was really a poison pill for us and our customers. I think we’ve trimmed out the ambiguities of this bill.” California AB 228 is awaiting the signature of Gov. Jerry Brown. It has been declared as an “urgent statute” and will become law once the measure is signed. Brown has until Oct. 15, to either sign the measure, let the bill become law without his signature or veto the measure. The bill had unanimous support in the California House and Senate. If signed, it will immediately replace the current law, passed last year by the legislature. The bill is expected to be signed by the governor, in part, because of its broad legislative support. The former law – a well-intentioned, but poorly crafted and ambiguous piece of legislation (AB 1570) — soared through the California State Legislature last year, carrying potentially disastrous consequences for the state’s auctioneers. The bill was sponsored by former Assemblywoman Ling-Ling Chang, after actor Mark Hamill – Luke Skywalker of the Star Wars films – publicly began citing movie memorabilia on Twitter with his faked signature selling for hundreds of dollars. With Hamill’s prompting and some help from Hollywood, Chang (who has since been defeated in office) sponsored a bill which – only after the dust settled, the language in place and the bill passed – proved upon closer reading to go well-beyond only celebrity autographs. “If you were to take the law literally – and the courts do take the law literally – anything with a maker’s mark or a signature, by law, must have a certificate of authenticity specifying the date, location and name of a witness to the signing of an object,” Michaan said. “Say, I have a Leonardo da Vinci painting for sale. By law I can’t sell it. I must have a witness to the signing of that painting. It’s from the 15th century. It’s not going to happen.” Also, as the law currently reads, auction houses are required to reveal the name of the consignor to the buyer. “That’s entirely against the auction model,” Michaan said. “Consignors expect and demand anonymity. If we had to give out the identity of the consignors, we would actually lose most of our consignors. They would send their objects out of state for sale. Not only does the measure not provide the consumer protections intended, but this new statute puts the impacted sellers in the position of either shutting down their businesses, not doing business in California, we’re running the risk of legal liability by not being able to comply.” Despite the law’s passage, little was done by the government to apply and enforce the statute. Michaan testified at the California General Assembly several times. He also enlisted other auction houses and auction providers, including Bonhams, Clars Auction Gallery, Abell Auction Co., LiveAuctioneers and Invaluable to hire Sacramento lobbyist Marc Aprea to assist in changing the law. Specifically, AB 228 amends the current law in revising the definitions of “collectibles” in the bill’s language to more clearly target “sports and entertainment.” Signed works of fine art, furniture, decorative objects, jewelry, books and manuscripts, and numismatic items or bullion have been struck from compliance with such restrictions. The provisions requiring the disclosure of the name and address of consignors will no longer be applicable in the new bill. However, the seller must retain records of the consignor for seven years, in which time a consumer may seek such records pursuant to a subpoena or judicial order. “This bill, I believe, removes the dark cloud,” Michaan said. The new law, if signed, will still pertain to sports and entertainment autographs. Severe penalties may apply to autograph sellers in California, up to 10 times actual damages, plus legal fees for anyone violating the statute. Contact: (510) 740-0220 www.michaans.com |