1 SB27
2 204156-5
3 By Senator Price
4 RFD: Governmental Affairs
5 First Read: 02-FEB-21
6 PFD: 12/16/2020
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1 SB27
2
3
4 ENROLLED, An Act,
5 To amend Sections 34-4-21, 34-4-23, 34-4-25,
6 34-4-27, 34-4-28, 34-4-29, 34-4-30, 34-4-31, 34-4-33, 34-4-50,
7 and 34-4-52, Code of Alabama 1975, relating to the State Board
8 of Auctioneers and the licensing of auctioneers; to provide
9 further for the qualifications for licensure and grounds for
10 denying a license; to provide for the issuance of a single use
11 auction license; to establish inactive status and provide for
12 the restoration of an inactive license; to remove all
13 residency requirements for licensure; to provide further for
14 the conduct of auctions without a license, specify certain
15 conditions regarding auction companies, and provide further
16 for the actions required of auctioneers in the conduct of
17 auctions; to provide further for instances in which
18 disciplinary actions are warranted; to authorize the board to
19 employ an investigator to investigate actions of licensees,
20 issue a complaint, and hold hearings pursuant to the Alabama
21 Administrative Procedure Act; to provide further for the
22 appeal of a final decision of the board; to provide further
23 for the membership of the board and to make each board member
24 accountable to the Governor; to provide further for meetings
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1 of the board and a quorum; and to repeal Section 34-4-22, Code
2 of Alabama 1975, relating to the register of applicants.
3 BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
4 Section 1. Sections 34-4-21, 34-4-23, 34-4-25,
5 34-4-27, 34-4-28, 34-4-29, 34-4-30, 34-4-31, 34-4-33, 34-4-50,
6 and 34-4-52 of the Code of Alabama 1975, are amended to read
7 as follows:
8 "34-4-21.
9 "(a) Any person desiring to enter into the auction
10 business and obtain a license as an auctioneer or apprentice
11 auctioneer shall make written application for a license to the
12 board. Each application shall be accompanied by an examination
13 fee of an amount not to exceed one hundred fifty dollars
14 ($100) ($150), as set by rule of the board, which shall be
15 collected from each applicant to defray the expenses of the
16 examination. The application shall be submitted on forms
17 prepared and furnished by the board.
18 "(b)(1) Each applicant for a license as an
19 auctioneer shall be 19 years of age or over, and each
20 applicant for a license as an apprentice auctioneer shall be
21 18 years of age or over and shall be a citizen of the United
22 States or legally present in this state. Each applicant for an
23 auctioneer's license shall:
24 "(1) have completed a prescribed course of study at
25 an accredited auctioneering school approved by the board;
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1 "(2) have served one year as an apprentice
2 auctioneer under the supervision of a licensed auctioneer in
3 this state; (3) have been the principal auctioneer in at least
4 five auctions of either real or personal property during this
5 period of time; and (4) furnish satisfactory proof of these
6 requirements to the board and have successfully completed a
7 course of study consisting of not less than 85 hours of
8 classroom instruction in the fundamentals of auctioneering
9 that satisfies the requirements of the board.
10 "(2) An application shall also be accompanied by a
11 recommendation of an employing auctioneer. If an applicant has
12 not successfully completed a an approved course of study at an
13 accredited auctioneering school, then that satisfies the
14 requirements of the board, in lieu thereof, he or she shall be
15 required to serve two years as an apprentice under the
16 supervision of a licensed auctioneer, and shall have been the
17 principal auctioneer in at least 10 auctions of real or
18 personal property in this state.
19 "(c)(1) Any person who files an a complete
20 application with the board in the proper manner shall be
21 entitled to take an oral and written examination to determine
22 his or her qualifications. The board shall may require
23 applicants to take and pass a written and oral an examination
24 establishing, in a manner satisfactory to the board, that the
25 applicant has a general knowledge of ethics, reading, writing,
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1 spelling, elementary arithmetic, elementary principles of land
2 economics, and a general knowledge of the statutes of this
3 state relating to the bulk sales, auctions, brokerage, and
4 this chapter. The examination for an auctioneer's license
5 shall be of a more exacting nature and scope than the
6 examination for an apprentice auctioneer.
7 "(2) The board shall, through application and
8 examination, shall determine whether the applicant is of good
9 repute, trustworthy, honest, and competent to transact the
10 business of an auctioneer, or of an apprentice auctioneer, in
11 a manner that safeguards the interest of the public.
12 "(3) The board shall require, and it shall be the
13 responsibility of any applicant for an initial, renewal, or
14 reciprocal license to disclose any prior felony conviction,
15 any prior misdemeanor conviction involving moral turpitude,
16 any pending criminal arrest of any nature except misdemeanor
17 traffic violations, and any prior or pending disciplinary
18 proceedings against the applicant before a board of
19 auctioneers or real estate commission in this or any other
20 state. Where an applicant has been convicted of a crime in a
21 court of competent jurisdiction of this or any other district,
22 state, or territory of the United States or of a foreign
23 country, the untrustworthiness of the applicant and the
24 conviction, in itself, may be sufficient grounds for refusal
25 of a license.
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1 "(4) All auctioneers, apprentice auctioneers, and
2 auction firms companies are under a continuing duty to report
3 to the board any and all such criminal arrests, charges,
4 convictions, or disciplinary proceedings which they may incur,
5 as well as any civil suits involving them. The board must
6 shall receive notice of any such arrest, charge, criminal
7 conviction, or commencement of disciplinary proceedings within
8 30 days of its occurrence. Notice of the commencement of any
9 civil suit must shall be received by the board within 30 days
10 after service of the complaint upon the defendant in the
11 action.
12 "(d) The board may grant a single auction license
13 once per calendar year to any nonresident individual, who is
14 duly licensed in good standing as an auctioneer, or to an
15 auction company in another state, who makes written
16 application to the board and provides satisfactory proof of
17 all of the following:
18 "(1) The applicant satisfies the age, reputation,
19 and other qualifications to be licensed as an auctioneer.
20 "(2) The applicant has paid a fee as established by
21 rule of the board.
22 "(3) The applicant has not applied for or previously
23 obtained a license under this chapter.
24 "(4) The applicant is not the subject of a
25 disciplinary action in any state; has not had a professional
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1 license or business license for any company in which he or she
2 is a principal in this, or any other licensing jurisdiction,
3 disciplined, suspended, revoked, or denied; has not been
4 convicted of a criminal offense; and has no criminal charges
5 pending in any jurisdiction.
6 "(5) The applicant has provided proof of financial
7 responsibility in the form of either an irrevocable letter of
8 credit, or a cash bond or surety bond in the amount of ten
9 thousand dollars ($10,000). If the applicant gives a surety
10 bond, the bond shall be executed by a surety company
11 authorized to do business in this state. A bond shall be made
12 payable to the board and shall be conditioned on compliance by
13 the applicant with this chapter and the rules adopted by the
14 board. All bonds shall be in a form approved by the board.
15 "(d)(e) The license fee for each auctioneer or
16 auction company shall be an amount to be determined by the
17 board, not to exceed two hundred fifty dollars ($250), and the
18 license fee for each apprentice auctioneer shall be an amount
19 to be determined by the board, not to exceed one hundred fifty
20 dollars ($100) ($150). The license fees for an auctioneer
21 shall not be increased more than twenty-five dollars ($25) in
22 any given year.
23 "(e)(f) All licenses shall expire on September 30 of
24 each year following issuance thereof and may be renewed upon
25 payment of the appropriate license fee as required by this
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1 chapter. Renewal of a license may be effected at any time
2 during the months preceding the date of expiration. No
3 examination shall be required for the renewal of any license,
4 unless the license has been revoked or suspended. If a
5 licensee fails to renew his or her license by the deadline of
6 each year, he or she may have renew his or her license renewed
7 within 60 days after the expiration date, upon payment of the
8 required fee and a late fee of twenty-five dollars ($25) for
9 apprentices and fifty dollars ($50) for auctioneers and
10 auction companies. If a licensee elects not to pay the penalty
11 and renew his or her license, he or she shall be required to
12 submit an application, pay the examination fee, and take the
13 examination required for new licensees.
14 "(f)(g) The board, by rule, shall adopt a program of
15 continuing education for its licensees. No licensee shall have
16 his or her license renewed unless, in addition to any other
17 requirements of this chapter, the minimum annual continuing
18 education requirements are met. The continuing education
19 program shall not include testing or examination of the
20 licensees in any manner. Any licensee 65 years of age or older
21 shall be exempt from the continuing education requirement.
22 "(g)(h) The board shall prepare and deliver to each
23 licensee a license certificate and pocket card. The
24 certificate shall be displayed openly at all times in the
25 office of the licensee. The certificate and the pocket card of
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1 the apprentice auctioneer shall contain his or her name as
2 well as that of the auctioneer under whose supervision he or
3 she is employed.
4 "(h)(i) When any auctioneer discharges an
5 apprentice, or terminates his or her employment with the
6 auctioneer for any reason, the auctioneer shall deliver or
7 mail by registered or certified mail to the board the license
8 of the discharged apprentice auctioneer. It shall be unlawful
9 for any apprentice auctioneer to perform any of the acts
10 contemplated by this chapter, either directly or indirectly
11 under authority of his or her license, until the apprentice
12 auctioneer receives a new license bearing the name and address
13 of his or her new employer. No more than one license shall be
14 issued to any apprentice auctioneer for the same period of
15 time.
16 "(i)(j) Written notice shall be given immediately to
17 the board by each licensee of any change in his or her mailing
18 address and the board shall issue a new license for the
19 unexpired period. A change of mailing address without
20 notification to the board shall automatically cancel the
21 license previously issued. For changing a mailing address and
22 issuance of a new license, the board shall collect a fee of
23 five dollars ($5) in an amount determined by rule of the
24 board. Each prior license shall be returned or accounted for
25 to the board and be canceled before the issuance of the new
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1 license. The board may require other proof considered
2 desirable with due regard to the paramount interest of the
3 public in the issuance of the license.
4 "(k)(1) An auctioneer who is in good standing with
5 the board may request inactive status by submitting to the
6 board a written application, his or her current license
7 certificate and pocket card, and a fee. The auctioneer shall
8 certify on the application that he or she will not perform any
9 business of auctioneering while on inactive status. An
10 auctioneer who has a disciplinary or suspension hearing
11 pending against him or her may only be granted inactive status
12 upon approval of the board. Inactive status may be renewed
13 annually upon written application and payment of a fee. The
14 board, by rule, shall determine the amount of the initial
15 application fee and the annual renewal fee.
16 "(2) An auctioneer on inactive status may be
17 restored to active status by submitting to the board a written
18 application requesting reactivation and providing proof of
19 satisfying all continuing education requirements for the most
20 recent licensure period during which the license was inactive.
21 "(j)(l) Pursuant to Sections 41-22-1 to 41-22-27,
22 inclusive, the Alabama Administrative Procedure Act, the board
23 may make and enforce any necessary and reasonable rules and
24 regulations pursuant to the application for any license.
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1 "(m) The board, by rule, may establish and charge
2 reasonable fees relating to the administration and enforcement
3 of this chapter for application or other processing costs;
4 online service; continuing education provider services; copy,
5 mailing, and filing services; and other fees as necessary to
6 offset licensing and processing costs.
7 "34-4-23.
8 "The issuance of a license by the board shall be
9 evidence that the person, partnership, association, or
10 corporation or business entity named therein is entitled to
11 all the rights and privileges of an auctioneer or apprentice
12 auctioneer while the license remains unrevoked or unexpired.
13 "34-4-25.
14 "(a) An individual A nonresident of this state, or a
15 resident of this state who is licensed by another state, may
16 become an auctioneer or apprentice auctioneer in this state by
17 conforming to this chapter, or in the case of a nonresident
18 from a nonlicensing state, such person may be licensed
19 provided an examination is given and passed and the person has
20 at least five years' experience in the auction business.
21 Provided further, that if a nonresident. If an auctioneer or
22 apprentice auctioneer, or a resident who is licensed as an
23 auctioneer or apprentice auctioneer in another state, has a
24 lawsuit or other legal action filed and pending against him or
25 her in this or any other state, the board shall may not issue
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1 a license to him or her until final disposition of the action,
2 and then only at the discretion of the board. The terms
3 "auctioneer" and "apprentice auctioneer" shall include any
4 individual, firm, company, partnership, association, or
5 corporation by whom the "auctioneer" or "apprentice
6 auctioneer" is employed. The board may recognize a license
7 issued by any other state to a resident of this state or a
8 nonresident auctioneer or apprentice auctioneer if the other
9 state reciprocates with Alabama in like manner and if the
10 licensing requirements of the state include the passing of an
11 examination of equal or higher standards than those required
12 by this state. The nonresident licensee, or resident licensee
13 of another state, shall, however, be required to secure a
14 license from the board which shall be issued upon application
15 therefor, accompanied by payment of the license fee required
16 by this chapter and the filing of a certified copy of the
17 license of the applicant issued by the other state. The board
18 shall have the authority to impose any fee or licensing
19 requirements on applicants for licenses from a reciprocal
20 state that the reciprocal state imposes on Alabama licensees
21 by rule, regulation, policy, or law.
22 "(b) Every applicant shall file an irrevocable
23 consent that actions may be commenced against the applicant in
24 the proper court in the county in this state in which a cause
25 of action may arise, in which the plaintiff may reside, by
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1 service of any process or pleadings authorized by laws of this
2 state on the board, or a deputy to be designated by the board,
3 the consent stipulating and agreeing that service of process
4 or pleading shall be begun and held in all courts to be as
5 valid and binding as if due service had been made upon the
6 applicant in this state. The consent shall be duly
7 acknow