Ala. Admin. Code r. 150-X-1-.02

Current through Register Vol. 43, No. 1, October 31, 2024

Section 150-X-1-.02 - Application For Auctioneer's License

(a) Upon application for an auctioneer's license, each apprentice auctioneer must present a statement signed by his/her sponsoring auctioneer, stating that said apprentice has participated as principal auctioneer in the required number of sales during the course of his/her apprenticeship. The applicant must furnish proof of the sales in the form of advertisements containing the applicant's name and license number in equal prominence with the name and license number of the sponsoring auctioneer, and proof that he/she was compensated for his/her services in these sales in the form of copies of canceled checks showing that the monies went through the sponsor's escrow account. (34-4-21)

(b) Non-resident, non-reciprocal applicants must prove they have been active auctioneers during the past five (5) years immediately preceding the date of application. Proof of activity may include some or all of the following and must contain dates which will effectively verify that the applicant has been an active auctioneer for the five (5) years immediately preceding the application: advertisements containing the applicant's name; copies of closing statements which show the date of the sale and are signed by the applicant; copies of county and or municipal auctioneer licenses; and affidavits from duly licensed Alabama auctioneers that the applicant has engaged in auctions during this time. (34-4-25)

(c) Reciprocity will be granted to those states having licensing requirements of equal or higher standards than Alabama and who have entered into a reciprocal agreement with the board. Applicants for reciprocity from states without an apprenticeship program equivalent to the Alabama apprenticeship program will be required (1) to have been licensed in reciprocating state for two (2) years prior to application for reciprocity, or (2) to have attended auction school and/or have worked in the auction industry in the reciprocating state for the equivalent of a two (2)-year apprenticeship. Reciprocal applicants shall be required to pay any licensure, renewal or application fee in an amount equal to that imposed on Alabama licensees in the reciprocating state and shall be required to meet any other licensure requirements imposed by the reciprocating state by rule, regulation, policy or law; provided, however, that if the reciprocating state imposes licensure, renewal or application fee that is less than that imposed by the Board, the reciprocal applicant shall be required to pay the higher fee. A list of the reciprocating states and their fees or requirements shall be maintained by the Board. (34-4-25)

(d) Any auction company applying for an auctioneer license shall furnish the following information to the Board; for purposes of this rule, an auction company includes any legal entity which engages in the business of auctioneering, as defined by the Auctioneers License Act and the rules and regulations of the Board. An auction company exclusively owned and operated by an auctioneer licensed by this Board and in good standing therewith will be exempt from the requirement for a separate auctioneer license under this chapter. Licensed auctioneers fitting within this exemption must still complete and file an auction company application with the Board, but shall not be required to remit the application or licensure fee. Failure to file a completed auction company application may subject an auctioneer and/or auction company to disciplinary action by the Board, regardless of whether the exemption from a separate auctioneer license applies.

1. A completed, signed and notarized application form, as prescribed by the Board, accompanied by the appropriate filing fee determined by the Board;

2. If such company is a foreign entity, satisfactory evidence approved by the Board that such company is authorized to do business in this state and is registered with the Alabama Secretary of State, in accordance with Article 15 of Title 10, Code of Ala. 1975;

3. Satisfactory evidence approved by the Board that the auction company employs or shall employ an auctioneer or auctioneers licensed under the provisions of this chapter to conduct any auctions in this state.

(e) Authority to act as an auctioneer and to transact business under the license shall be limited to one officer of the auction company, to be designated in the application and named in the license. Each other officer or member of such auction company desiring to act as an auctioneer in connection with the business of the auction company, or otherwise, shall be required to make application for and take out an individual license in his/her own name. An apprentice auctioneer cannot satisfy this requirement. Written notification of a change in the auctioneer authorized to transact business under the license shall be provided to the Board within thirty (30) days of such change.

(f) Prior to the issuance of a license, each auctioneer or auction company responsible to account for or remit funds of others that come into its possession shall provide the name of the bank and the account number of any escrow or trustee account wherein the funds of others held by the auctioneer or auction company are maintained. Any licensed auctioneer in Alabama who works directly for an auction company or who works directly for another licensed auctioneer who maintains an active escrow account may use that escrow account and number in all applications for licensure or renewal, provided that the escrow account is used solely for the purpose of holding funds of others in relation to auctions.

(g) Authority to transact business as an auctioneer under any license issued by the Board shall be restricted to the person named in such license and shall not inure to the benefit of any other person.

(h) Incomplete applications will be returned to the applicant with a letter describing deficient items to be completed and returned to the board. Incomplete applications will be considered expired after one (1) year from the first date of notification of such deficiencies. (34-4-4)

(i) Upon the expiration of a license in good standing due solely to licensee's failure to renew, the Board may reissue the same license number to said licensee upon his/her written request therefor and successful completion of all requirements for re-licensure within 365 days from the date of expiration of the unrenewed license. The Board shall not reissue the same license number to any former licensee who does not successfully complete the licensure requirements within said period, despite any request therefor.

(j) Any person licensed by the Board as an auctioneer or as an apprentice auctioneer may elect an inactive status license by notifying the Board in writing or by properly completing and submitting the form provided on the Board's website. This notification must be received by the Board at least thirty (30) days before the license is due to expire.

1. Only active licenses may elect inactive status; an expired license is not eligible for an inactive status certificate.

2. To qualify for inactive status, a licensee must not be actively engaged in auctioneering or the auction business.

3. The fee for the issuance of an inactive status shall be determined by the Board.

4. To reinstate an inactive certificate to an active license, the licensee must pay the appropriate renewal fee and provide proof of satisfactory completion of 6 hours of approved continuing education.

(k) To conduct a single auction per calendar year in the State of Alabama, applicants must meet the following requirements:

1. The individual and company must be a licensed auctioneer or a licensed auction company or firm in another state in good standing.

2. The individual and company must meet all current requirements of an Alabama Auctioneer or Auction Company.

3. The company must not be a State of Alabama domiciled business.

4. The company may employ an Alabama Licensed Auctioneer to conduct the sale but it is not required.

Ala. Admin. Code r. 150-X-1-.02

New Rule: Filed July 12, 1995; effective August 16, 1995. Amended: Filed January 29, 2003; effective March 5, 2003. Amended: Filed July 24, 2007; effective August 28, 2007. Amended: Filed October 20, 2008; effective November 24, 2008. Amended: Filed November 3, 2010; effective December 8, 2010. Amended: Filed October 4, 2013; effective November 8, 2013.

Amended by Alabama Administrative Monthly Volume XXXIII, Issue No. 01, October 31, 2014, eff. 11/14/2014.

Amended by Alabama Administrative Monthly Volume XXXVI, Issue No. 05, February 28, 2018, eff. 3/26/2018.

Amended by Alabama Administrative Monthly Volume XL, Issue No. 05, February 28, 2022, eff. 4/14/2022.

Author: J. O. Blandenburg

Statutory Authority:Code of Ala. 1975, § 34-4-25.