Alabama Administrative Code Title 150 - ALABAMA STATE BOARD OF AUCTIONEERS
The Alabama Administrative Code, Title 150, is dedicated to the Alabama State Board of Auctioneers. This Board is the regulatory body responsible for licensing and overseeing auctioneers, apprentice auctioneers, and auction companies within the state. Its primary goal is to protect the public safety and welfare by ensuring the ethical and professional conduct of those engaged in the auction business.
Key responsibilities and functions of the Alabama State Board of Auctioneers, as reflected in Title 150, include:
Licensing and Registration:
Auctioneers: Establishing detailed requirements for individuals to obtain and renew an auctioneer's license. This typically involves:
Meeting age requirements (e.g., 19 years old).
Citizenship or legal presence in Alabama.
Completion of a specified number of hours of classroom instruction from a Board-approved auctioneering school (e.g., 85 hours) OR serving an extended apprenticeship (e.g., two years) if no formal schooling.
Serving as an apprentice for a certain period (e.g., one year with school, two years without).
Acting as the principal auctioneer in a required number of sales during the apprenticeship (e.g., 5-10 sales depending on schooling).
Passing an examination approved by the Board.
Obtaining and maintaining a surety bond (e.g., $10,000) to protect the public.
Paying application, examination, and licensing fees.
Apprentice Auctioneers: Setting requirements for individuals to become licensed as apprentice auctioneers, including age (e.g., 18 years old), sponsorship by a licensed auctioneer, and a surety bond.
Auction Companies: Requiring legal entities engaged in the auction business to obtain a separate license from the Board, unless specifically exempted (e.g., an auction company exclusively owned and operated by a single licensed auctioneer in good standing).
Reciprocity: Establishing conditions and procedures for granting licenses to auctioneers licensed in other states that have comparable licensing standards and reciprocity agreements with Alabama.
Regulation of Auction Practice:
Escrow/Trust Accounts: Mandating that auctioneers or auction companies responsible for handling client funds maintain and use escrow or trustee accounts solely for that purpose (Rule 150-X-1-.02).
Advertising Standards: Requiring advertisements for auction sales to clearly identify the name and license number of the sponsoring auctioneer and any apprentices conducting the auction business (Rule 150-X-1-.10).
Contracts and Settlement Statements: Rules regarding who can execute auction contracts and sign settlement statements (typically the licensed auctioneer, not the apprentice).
Online Auctions: Clarifying that conducting online auctions for goods or property not owned by the seller requires a license.
Real Estate Auctions: Specifying that individuals auctioning real property need both an auctioneer license from the Board and a broker's license from the Alabama Real Estate Commission.
Apprentice Supervision:
Duties of Sponsors: Detailing the responsibilities of a sponsoring auctioneer, including having been licensed for at least two years, being in good standing, direct supervision of apprentices, and accountability for their actions (Rule 150-X-1-.10).
Apprentice Limitations: Specifying what apprentices cannot do, such as executing contracts without sponsor approval, signing settlement statements, or having their own escrow accounts.
Continuing Education:
Mandating continuing education requirements for license renewal (e.g., six hours every odd-numbered year), with potential exemptions for certain older licensees (e.g., 65+ years).
Enforcement and Discipline:
Establishing procedures for investigating complaints against licensed auctioneers or companies.
Taking disciplinary action for violations of the Auctioneers License Act or the Board's rules and regulations, which can include fines, suspension, or revocation of licenses.
Definitions:
Providing clear definitions of terms used in the auction business, such as "auctioneer," "auction," "auction company," "absolute auction," "auction with reserve," and "auction without reserve" (Rule 150-X-1-.01).
In essence, Title 150 of the Alabama Administrative Code provides the comprehensive framework that enables the Alabama State Board of Auctioneers to ensure that all auction activities in the state are conducted by qualified, ethical, and licensed professionals, thereby protecting consumers and maintaining the integrity of the auction industry.
You can find the full text of these rules on the Alabama Legislature's Administrative Code website and on the Alabama State Board of Auctioneers' official website.
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