Under the proposed law, all auction houses in the state would have to send cheques to vendors within 14 days of a sale, disclose when there is a reserve price and declare any financial interest in lots sold.
The law is being proposed by veteran Assemblyman Richard Brodsky, a Democrat from Westchester County with a long-standing interest in the conduct of art auctions and museums (he also hopes to introduce legislation to regulate deaccessioning by museums in the state).
Mr Brodsky first led an inquiry into art-market practices in 1991. Similar legislation has been considered and dropped in previous years but the bill appears to have gained new life with a number of amendments designed to help its passage at this time of asking.
Auction houses, regulators, art dealers, and “others with interest in ensuring that New York state remains the world’s premier auction centre” have contributed to the drafting of An act to amend the general business law, in relation to auction requirements (A1730C).
The major auctioneers operating in the state already operate under most of the 21 provisions listed in the bill. However, Brodsky says New York state law does not currently provide for regulation of auctions and needs the amended legislation to provide statutory protections to auction participants.
“The world’s major auction houses are located in New York State and are an important source of economic activity and tourism. Thus, it is important that state law provide protections for all parties to auctions.”
The bill passed through the Assembly on January 26 and now goes to the New York State Senate for consideration.
