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PAG LIN 1 1 Section 1. NEW SECTION. 545A.1 TITLE. 1 2 This chapter shall be known and may be cited as the "Iowa 1 3 Auction and Auctioneer Licensing Act". 1 4 Sec. 2. NEW SECTION. 545A.2 DEFINITIONS. 1 5 1. "Associate auctioneer" means a person who acts as an 1 6 auctioneer, but who is under the direct supervision of a 1 7 licensed auctioneer or auction service. 1 8 2. "Auction" means the sale of property, real or personal, 1 9 by public outcry, in which the sale price of the property 1 10 offered is increased until the highest accepted bidder becomes 1 11 the purchaser. 1 12 3. "Auction clerk" or "auction cashier" means a person 1 13 who, with or without receiving or collecting a fee, 1 14 commission, or other valuable consideration, collects, 1 15 accounts for, or distributes proceeds from an auction. 1 16 4. "Auctioneer" means a person who, as a bid caller, sells 1 17 or offers to sell property with or without receiving or 1 18 collecting a fee, commission, or other valuable consideration. 1 19 5. "Auction service" means a person who engages in the 1 20 business of arranging, managing, sponsoring, advertising, or 1 21 conducting auctions. 1 22 6. "Certified auction school" means a public or private 1 23 educational institution offering curriculum of auctioneer 1 24 education and training approved by the commission. 1 25 7. "Commission" means the Iowa auction and auctioneer 1 26 commission established in section 545A.3. 1 27 8. "Licensee" means a person licensed under this chapter. 1 28 9. "Person" means as defined in section 4.1. 1 29 10. "Property" means anything of value, and includes any 1 30 interest in property, including any benefit, privilege, claim, 1 31 or right with respect to anything of value, whether real or 1 32 personal, tangible or intangible, which may be kept or offered 1 33 for sale. 1 34 11. "Secured party" means as defined in section 554.9105. 1 35 12. "Trust account" means an account in a federally 2 1 insured financial institution used for the deposit and 2 2 disbursement of the proceeds of an auction. 2 3 Sec. 3. NEW SECTION. 545A.3 IOWA AUCTION AND AUCTIONEER 2 4 COMMISSION ESTABLISHED MEMBERS DUTIES. 2 5 1. An Iowa auction and auctioneer commission is 2 6 established within the professional licensing and regulation 2 7 division of the department of commerce. 2 8 2. Members of the commission shall be appointed by the 2 9 governor and subject to confirmation by the senate. 2 10 3. The commission shall consist of five voting members as 2 11 follows: 2 12 a. Four members who represent auctioneers, auction clerks 2 13 and auction cashiers, associate auctioneers, and auction 2 14 services. An individual appointed pursuant to this paragraph 2 15 must be a licensee. 2 16 b. One member who shall represent the public. An 2 17 individual appointed pursuant to this paragraph must not be or 2 18 have been a licensee under this chapter or have engaged in any 2 19 manner in the auction profession. 2 20 4. Members of the commission shall serve three-year 2 21 staggered terms as designated by the governor consistent with 2 22 this section and appointments to the commission are subject to 2 23 the requirements of sections 69.16, 69.16A, and 69.19. A 2 24 member of the commission shall serve no more than two 2 25 consecutive terms, not including any partial term which the 2 26 member is appointed to fill as the result of a vacancy. 2 27 Vacancies shall be filled by the governor for the duration of 2 28 the unexpired term in the same manner as provided for other 2 29 appointments. 2 30 5. A member of the commission is entitled to be reimbursed 2 31 for all actual and necessary expenses incurred in performance 2 32 of duties as a member. A member of the commission shall also 2 33 receive a per diem as specified in section 7E.6 for each day 2 34 spent in performance of duties as a member. 2 35 6. A quorum shall consist of a majority of the members of 3 1 the commission. 3 2 7. Members of the commission shall elect a chairperson and 3 3 vice chairperson annually and other officers as they 3 4 determine. 3 5 8. The commission shall meet as often as necessary, but at 3 6 least once during each calendar quarter. Meetings shall be 3 7 set by a majority of the commission or upon the call of the 3 8 chairperson. 3 9 Sec. 4. NEW SECTION. 545A.4 DUTIES OF THE COMMISSION. 3 10 1. The commission shall adopt rules pursuant to chapter 3 11 17A establishing licensing requirements and other rules 3 12 necessary to administer and enforce this chapter. The 3 13 commission shall consider proposed rules recommended by a 3 14 commission member, a public citizen, or a professional auction 3 15 organization. The commission may publish guidelines to 3 16 provide clarification and explanation of adopted rules. 3 17 2. The commission shall maintain a registry of the names 3 18 and addresses of auctioneers, associate auctioneers, auction 3 19 clerks, and auction services licensed under this chapter. The 3 20 commission shall retain records and application materials 3 21 submitted to the commission. 3 22 3. The commission shall establish the licensing 3 23 requirements for each type of license, provide appropriate 3 24 examinations, establish procedures for grading examinations, 3 25 receive and approve or disapprove applications for licensing, 3 26 and issue licenses. 3 27 An applicant for an auctioneer, associate auctioneer, 3 28 auction clerk or auction cashier, or auction service license 3 29 shall provide evidence that the applicant has working 3 30 knowledge of current auction marketing theories, practices, 3 31 and techniques which will enable the applicant to provide high 3 32 quality service and protection to members of the public. 3 33 4. The commission shall establish continuing education 3 34 requirements for licensees and monitor compliance with the 3 35 established requirements. The basic continuing education 4 1 requirement for renewal of a license shall be the completion, 4 2 during the immediately preceding licensure term, of the number 4 3 of classroom hours of instruction required by the commission 4 4 in courses or seminars approved by the commission. 4 5 Participation in continuing education for license renewal 4 6 is mandatory, except for nonresident licensees whose 4 7 nonresident license is issued by reciprocity with the 4 8 nonresident's state of residence. A nonresident licensee 4 9 whose state does not have a substantially similar licensing 4 10 requirement shall fulfill the mandatory continuing education 4 11 requirements established pursuant to this section. 4 12 Sec. 5. NEW SECTION. 545A.5 LICENSE FEES. 4 13 1. The commission shall establish and collect a reasonable 4 14 fee for a license application, examination, reexamination, 4 15 issuance of a license, renewal of a license, and any 4 16 delinquency fee sufficient to pay for the costs of 4 17 administration and implementation of this chapter. The fees 4 18 shall include, but are not limited to, amounts to cover the 4 19 cost for the following items: 4 20 a. Per diem and necessary expenses for commission members. 4 21 b. Office facilities, supplies, and equipment of the 4 22 commission. 4 23 2. Fees collected by the commission shall be transmitted 4 24 to the treasurer of state and shall be deposited in the 4 25 auctioneer recovery and education fund established in section 4 26 545A.12. Moneys in the fund are appropriated to and shall be 4 27 used by the commission consistent with this chapter. 4 28 Sec. 6. NEW SECTION. 545A.6 LICENSE REQUIREMENTS. 4 29 1. An application for a license, renewal of a license, or 4 30 an examination shall be made in writing to the commission on 4 31 forms approved by the commission. 4 32 2. Prior to the adoption of rules by the commission, the 4 33 commission may issue an interim license to a qualified 4 34 applicant. An interim license shall not be issued or renewed 4 35 following the adoption of licensure rules by the commission. 5 1 3. Except as otherwise provided in this chapter, a person 5 2 shall not act as an auctioneer, associate auctioneer, auction 5 3 clerk or auction cashier, or auction service in this state 5 4 unless that person holds a license issued under this chapter. 5 5 4. A person is eligible for an auctioneer's license if the 5 6 applicant satisfies all of the following: 5 7 a. The applicant is at least eighteen years of age. 5 8 b. The applicant is a citizen of the United States or a 5 9 legal alien. 5 10 c. The applicant does one of the following: 5 11 (1) Passes a written or oral examination offered pursuant 5 12 to section 545A.7 demonstrating the applicant's knowledge of 5 13 auctioneering and the laws pertaining to auctioneering. 5 14 (2) Shows proof that the applicant has legally performed 5 15 as an auctioneer in at least five auctions prior to the date 5 16 of application. 5 17 (3) Shows proof that the applicant has successfully 5 18 completed a course of study at a certified auction school. 5 19 5. A person is eligible for an associate auctioneer's 5 20 license if the applicant satisfies both of the following: 5 21 a. The applicant is a citizen of the United States or a 5 22 legal alien. 5 23 b. The applicant is employed under the direct supervision 5 24 of an auctioneer or auction service licensed pursuant to this 5 25 chapter. 5 26 6. A person is eligible for an auction clerk or auction 5 27 cashier license if the applicant satisfies all of the 5 28 following: 5 29 a. The applicant is at least eighteen years of age. 5 30 b. The applicant is a citizen of the United States or a 5 31 legal alien. 5 32 c. The applicant has not been convicted of a felony. 5 33 d. The applicant does one of the following: 5 34 (1) Passes a written examination offered pursuant to 5 35 section 545A.7 demonstrating the applicant's knowledge of the 6 1 position of auction clerk or auction cashier, acceptable 6 2 accounting methodology, and the laws pertaining to such 6 3 position. 6 4 (2) Shows proof that the applicant has successfully 6 5 completed a course of study at a certified auction school. 6 6 (3) Shows proof that the applicant has legally performed 6 7 as an auction clerk or auction cashier in at least five 6 8 auctions within the previous five years prior to application. 6 9 7. An auction service license may be issued for the 6 10 purpose of engaging in the business of arranging, managing, 6 11 sponsoring, advertising, or conducting auctions, to a person 6 12 who satisfies the requirements both for licensure as an 6 13 auctioneer and for licensure as an auction clerk or auction 6 14 cashier. 6 15 8. A licensed auction clerk or auction cashier, and a 6 16 licensed auction service, must hold an Iowa retail sales tax 6 17 permit. 6 18 Sec. 7. NEW SECTION. 545A.7 EXAMINATION REQUIREMENTS. 6 19 1. The commission shall prepare license examinations for 6 20 an auctioneer license, auction clerk or auction cashier 6 21 license, and auction service license. The commission shall 6 22 also prepare study and reference materials on which the 6 23 examinations are based. The examination for auctioneers, 6 24 auction clerks or auction cashiers, and auction services must 6 25 be designed to establish the applicant's general knowledge of 6 26 the auction profession, the principles of conducting an 6 27 auction, and the laws of this state pertaining to auctioneers, 6 28 auction clerks or auction cashiers, and auction services. The 6 29 license examination must be offered at least four times a year 6 30 at locations designated by the commission. 6 31 2. A person seeking to become eligible for an auctioneer 6 32 license, auction clerk or auction cashier license, or auction 6 33 service license by examination must apply to the commission to 6 34 take a license examination. The application must be 6 35 accompanied by an examination fee. Upon the receipt of an 7 1 examination application with the required fee, the commission 7 2 shall furnish the applicant with study materials and 7 3 references on which the examination will be based and a 7 4 schedule specifying the dates and places the examination will 7 5 be offered. The applicant may take the examination at any 7 6 scheduled offering within ninety days after receipt of the 7 7 study materials. If an applicant fails the examination, the 7 8 applicant may reapply to take the license examination again. 7 9 However, if the applicant fails the examination twice within a 7 10 one-year period, the applicant must wait one year from the 7 11 last date of examination to reapply. 7 12 Sec. 8. NEW SECTION. 545A.8 NONRESIDENT LICENSE. 7 13 1. An application for an auctioneer license, auction clerk 7 14 or auction cashier license, or auction service license from a 7 15 nonresident may be issued by the commission as follows: 7 16 a. If the application is accompanied by a certified copy 7 17 of an auctioneer license, auction clerk or auction cashier 7 18 license, or auction service license issued to the applicant by 7 19 the applicant's state of residence, and the commission has 7 20 determined that the applicant's state has substantially 7 21 equivalent licensing requirements, and only if the applicant's 7 22 state extends similar recognition and courtesies to this 7 23 state, the commission shall accept the license as proof of the 7 24 applicant's professional competence and shall waive the course 7 25 of study and examination requirements of section 545A.7. 7 26 b. If an application is received from a nonresident of 7 27 this state where the applicant's state of residency does not 7 28 have an auctioneer license, auction clerk or auction cashier 7 29 license, or auction service license requirement, the 7 30 commission may issue a nonresident license to the applicant if 7 31 the applicant meets the requirements of section 545A.6 and all 7 32 other application requirements must be complied with by 7 33 nonresidents. 7 34 2. The commission may issue a license to a nonresident 7 35 applicant for an associate auctioneer license if the applicant 8 1 meets the requirements of section 545A.6 and all other 8 2 application requirements must be complied with by 8 3 nonresidents. 8 4 3. A nonresident applying for a license pursuant to this 8 5 section shall file a written power of attorney designating the 8 6 secretary of state as the agent of the nonresident upon whom 8 7 service of process may be had in the event of any suit against 8 8 the nonresident person, and such power of attorney shall be so 8 9 prepared and in such form as to render effective the 8 10 jurisdiction of the courts of this state over the nonresident 8 11 applicant. A nonresident who has a duly appointed resident 8 12 agent upon whom process may be served as provided by law is 8 13 not required to designate the secretary of state as such 8 14 agent. The secretary of state is allowed such fees as 8 15 provided by law for designating resident agents. The 8 16 secretary shall be furnished with a copy of such designation 8 17 of the secretary of state or of a resident agent, with the 8 18 copy to be certified by the secretary of state. 8 19 4. A licensed nonresident auction clerk or auction cashier 8 20 and licensed nonresident auction service must hold an Iowa 8 21 sales tax permit. 8 22 Sec. 9. NEW SECTION. 545A.9 LICENSE CERTIFICATE. 8 23 1. A license certificate issued under this chapter shall 8 24 bear the signature or facsimile signature of a member of the 8 25 commission and a license number assigned by the commission. 8 26 2. No less than ninety days prior to the expiration of a 8 27 licensee's license, the commission shall issue a renewal 8 28 notice to each licensee. 8 29 Sec. 10. NEW SECTION. 545A.10 DENIAL, SUSPENSION, OR 8 30 REVOCATION OF LICENSE. 8 31 1. The rights of a holder of a license as a licensed 8 32 auctioneer, licensed associate auctioneer, licensed auction 8 33 clerk or auction cashier, or licensed auction service may be 8 34 revoked or suspended, or the holder may be otherwise 8 35 disciplined as provided in this chapter. The commission may 9 1 investigate the actions of a licensee and may revoke or 9 2 suspend the rights of a licensee or otherwise discipline a 9 3 licensee for violation of this chapter or of a rule adopted 9 4 pursuant to this chapter. Violations shall include, but are 9 5 not limited to, the following acts or omissions: 9 6 a. Procurement or attempt to procure a license under this 9 7 chapter by knowingly making a false statement, submitting 9 8 false information, refusing to provide complete information in 9 9 response to a question in an application for license, or 9 10 participating in any form of fraud or misrepresentation. 9 11 b. Failure to meet the minimum qualifications established 9 12 by this chapter. 9 13 c. Continued and flagrant misrepresentations or for making 9 14 false promises through agents, advertising, or otherwise. 9 15 d. Failing to account for or remit, within a reasonable 9 16 time, any money or property belonging to others that comes 9 17 into the licensee's possession, or for commingling funds of 9 18 others with the licensee's own or failing to keep such funds 9 19 of others in an escrow or trust account. 9 20 e. Conviction, including a conviction based upon a plea of 9 21 guilt or nolo contendere, in a court of competent jurisdiction 9 22 of this state or any other state of a crime which is 9 23 substantially related to the qualifications, functions, and 9 24 duties of a person engaged in the auction profession or 9 25 involving moral turpitude or a felony. 9 26 f. Failure or refusal without good cause to exercise 9 27 reasonable diligence in preparing an auction, conducting an 9 28 auction, or completing an auction. 9 29 g. A violation of the uniform commercial code, chapter 9 30 554, in the conduct of an auction. 9 31 2. Before denying an application for a license or before 9 32 suspending or revoking any license, the commission shall in 9 33 all cases set the matter for a hearing and shall, at least 9 34 thirty days before the date set for the hearing, notify in 9 35 writing the applicant or licensee of the charges made against 10 1 the applicant or licensee, or of the question to be 10 2 determined, including notice of when and where the hearing 10 3 will be held. 10 4 3. The applicant or licensee is entitled to an opportunity 10 5 to be present and to be heard in person or by counsel and to 10 6 have an opportunity to offer evidence by oral testimony, by 10 7 affidavit, or by deposition. 10 8 4. Written notice may be served by delivery of the notice 10 9 personally to the applicant or licensee or by mailing the 10 10 notice by certified mail to the last known mailing address of 10 11 the applicant or licensee. If the applicant or licensee is an 10 12 associate auctioneer, the commission shall also notify the 10 13 auctioneer employing the associate auctioneer by mailing the 10 14 notice by certified mail to the employing auctioneer's last 10 15 known address. 10 16 5. The hearing shall be conducted pursuant to chapter 17A. 10 17 6. If, after hearing, the commission determines that a 10 18 license should be denied, revoked, or suspended, the applicant 10 19 or licensee has thirty days in which to appeal the 10 20 commission's decision to the district court of the county in 10 21 which the disqualification or violation is alleged to have 10 22 occurred. 10 23 Sec. 11. NEW SECTION. 545A.11 INACTIVE LICENSE. 10 24 A licensee who does not engage in any activity for which a 10 25 license under this chapter is required during the year 10 26 succeeding the expiration of the license shall notify the 10 27 commission to place the licensee on a list of inactive 10 28 licensees and the licensee shall not be required to pay a 10 29 license renewal fee for as long as the licensee remains 10 30 inactive and annually notifies the commission of such inactive 10 31 status. In order to resume engaging in an activity for which 10 32 a license under this chapter is required, the licensee shall 10 33 notify the commission and remit the appropriate renewal fee 10 34 for the current renewal period. 10 35 Sec. 12. NEW SECTION. 545A.12 AUCTIONEER RECOVERY AND 11 1 EDUCATION FUND ESTABLISHED PURPOSE. 11 2 1. a. An auctioneer recovery and education fund is 11 3 created in the state treasury under the control of the 11 4 commission. 11 5 b. In addition to the license fees collected pursuant to 11 6 this chapter, upon renewal of every auction clerk or auction 11 7 cashier and auction service license, the commission, in its 11 8 discretion and based upon the needs of the commission, may 11 9 assess every licensee an amount not to exceed fifty dollars 11 10 per year to be deposited in the auctioneer recovery and 11 11 education fund. 11 12 c. In addition to the license fees collected pursuant to 11 13 this chapter, an applicant for an initial license shall pay an 11 14 additional amount of fifty dollars, but upon renewal shall pay 11 15 the same fee as other licensees. 11 16 2. Moneys in the fund shall be used for the following 11 17 purposes: 11 18 a. Payment to a person aggrieved by a licensee as the 11 19 result of a violation of this chapter or rules adopted 11 20 pursuant to this chapter. Payment is to be made upon the 11 21 entry of a final order entered by the commission or by a 11 22 court. The commission is authorized to pay to the aggrieved 11 23 person or persons an aggregate amount not to exceed twenty 11 24 thousand dollars against any one licensee, provided that the 11 25 licensee has refused to pay such claim within a period of 11 26 twenty days of entry of a final order and provided further 11 27 that the amount or amounts of money in question are certain 11 28 and liquidated. 11 29 b. The commission shall attempt to maintain a minimum 11 30 level of two hundred thousand dollars in the fund for recovery 11 31 and guaranty purposes. All moneys in the fund may be invested 11 32 in the same manner as funds of the Iowa public employees' 11 33 retirement system and the interest from such investments shall 11 34 be deposited to the credit of the fund. Sufficient liquidity 11 35 shall be maintained so that moneys are available to satisfy 12 1 any and all claims, subject to available funds, which may be 12 2 processed through the commission by means of administrative 12 3 hearing as outlined in this chapter. 12 4 c. The commission, in its discretion, may use any funds in 12 5 excess of the two hundred thousand dollar level for any of the 12 6 following purposes: 12 7 (1) To carry out the advancement of education and research 12 8 in the auction field for the benefit of licensees, and for 12 9 improving the efficiency of the auction profession. 12 10 (2) To underwrite educational seminars and other forms of 12 11 education projects for the use and benefit generally of 12 12 licensees. 12 13 (3) To establish an auction chair or courses at state 12 14 institutions of higher learning for the purpose of making such 12 15 courses available to licensees and the general public. 12 16 (4) To contract for particular research projects relating 12 17 to the auction profession. 12 18 (5) To sponsor, contract for, and to underwrite any and 12 19 all other educational and research projects of a similar 12 20 nature having to do with the advancement of the auction 12 21 profession. 12 22 (6) To cooperate with associations of auctioneers and any 12 23 other groups for the enlightenment and advancement of 12 24 licensees. 12 25 (7) To increase the level of the auctioneer recovery and 12 26 education fund above two hundred thousand dollars. 12 27 (8) To augment the regular trust and agency account of the 12 28 commission. 12 29 3. a. If a licensee is found guilty of violation of this 12 30 chapter or of the rules adopted pursuant to this chapter, and 12 31 if the amount of money lost by the aggrieved party or parties 12 32 is in dispute or cannot be determined accurately, the 12 33 liability of the licensee and the amount of damages shall be 12 34 determined by the district court in the county where the 12 35 alleged violation took place, provided that the commission has 13 1 previously determined that a violation has occurred and a 13 2 final order has been entered. 13 3 b. If such an order has been entered and the rights of the 13 4 licensee have been finally adjudicated, the district court 13 5 shall make a finding as to the monetary damages growing out of 13 6 the violation. 13 7 c. When a final order has been entered by the district 13 8 court, or after appeal, if any, and upon certification to the 13 9 commission, the aggrieved party or parties shall be paid such 13 10 amount or amounts in the aggregate not to exceed twenty 13 11 thousand dollars by the commission, and the license held by 13 12 the licensee against whom the claim was made by the aggrieved 13 13 party shall be suspended at a minimum until such time as the 13 14 licensee has reimbursed the auctioneer recovery and education 13 15 fund for all amounts paid to the aggrieved party as a result 13 16 of the violation. 13 17 d. Upon payment by the commission of any sum to the 13 18 aggrieved party, the commission shall be subrogated to all 13 19 rights of the aggrieved party to the extent of the payment and 13 20 the aggrieved party shall to the extent of the payment assign 13 21 such right, title, and interest in the judgement to the 13 22 commission. 13 23 e. A claim for monetary damages or relief from the 13 24 auctioneer recovery and education fund must be made in writing 13 25 on a proof of loss form submitted to the commission within six 13 26 months of the act of the auctioneer giving rise to the loss. 13 27 Failure to file such claims within the six-month period shall 13 28 bar the claim. Additional evidence shall be submitted by the 13 29 claimant if required by the commission. 13 30 f. Notwithstanding any other provisions of this chapter, 13 31 an unreimbursed amount greater than twenty thousand dollars 13 32 shall not be paid by the commission on account of any one 13 33 licensee, regardless of the length of time, the number of 13 34 claims or claimants, or the size of such claims, individually 13 35 or in the aggregate. Upon reimbursement of the fund by the 14 1 licensee for all amounts paid, future claims timely filed with 14 2 the commission regarding the licensee concerning different 14 3 matters may be received pursuant to this section. 14 4 g. A claim shall not be approved under this section for 14 5 amounts which, in the aggregate, exceed the maximum payable in 14 6 effect at the time of the act or acts of the licensee giving 14 7 rise to the claims on account of any one licensee. A 14 8 statutory increase in the established maximum shall not apply 14 9 retroactively. 14 10 4. This section is not intended to substitute for, 14 11 circumvent, or duplicate other remedies existing at law for 14 12 claimants or potential claimants, but constitutes a last 14 13 resort for aggrieved persons who would not, but for the 14 14 provisions of this section, be able to recover their losses by 14 15 any other means available. The commission shall have full 14 16 discretion to require that claimants exhaust all other 14 17 remedies prior to proceeding under this section. 14 18 Sec. 13. NEW SECTION. 545A.13 PREEMPTION. 14 19 A political subdivision of this state shall not levy or 14 20 collect any license fee, tax, or other fee, or require the 14 21 licensing in any manner of any auctioneer, associate 14 22 auctioneer, auction clerk or auction cashier, or auction 14 23 service subject to this chapter. 14 24 Sec. 14. NEW SECTION. 545A.14 TRUST ACCOUNT 14 25 REQUIREMENTS. 14 26 1. A licensee shall maintain a trust account as provided 14 27 in this section for the deposit and dispersal of all proceeds 14 28 collected on the behalf of another person, including sales 14 29 tax, if applicable. The account shall be separate from all 14 30 other trust accounts of the holder and may be an interest 14 31 bearing account. For purposes of this section, "licensee" 14 32 means a licensed auction clerk or auction cashier or licensed 14 33 auction service. 14 34 2. A licensee required to maintain a trust account 14 35 pursuant to this section shall report to the commission the 15 1 name and mailing address of the financial institution where 15 2 the trust account is maintained and the trust account number. 15 3 A consent form shall also be furnished to the commission from 15 4 the licensee and the financial institution to permit the 15 5 examination and audit of the trust account by the commission 15 6 or the commission's representative. 15 7 3. Auction trust accounts shall be maintained as follows: 15 8 a. A resident licensee shall maintain a trust account in a 15 9 federally insured financial institution located in this state. 15 10 b. A nonresident licensee licensed in such licensee's 15 11 state of residence shall maintain a trust account in this 15 12 state in the same manner as provided for a resident licensee 15 13 under paragraph "a", or in a federally insured financial 15 14 institution in the licensee's state of residence and the 15 15 licensee shall comply with subsection 2. 15 16 c. A nonresident licensee who is a resident of a state 15 17 that does not provide for the licensing of auctioneers, 15 18 auction clerks or auction cashiers, or auction services must 15 19 maintain an auction trust account in a federally insured Iowa 15 20 financial institution and the licensee shall comply with 15 21 subsection 2. 15 22 4. An auction trust account may contain sufficient 15 23 personal funds of the licensee to maintain that account. 15 24 Sec. 15. NEW SECTION. 545A.15 INVESTIGATION OF COMPLAINT 15 25 ACTION. 15 26 The commission, upon its own motion, may, or on the written 15 27 and verified complaint of any person aggrieved by the actions 15 28 of an auctioneer, associate auctioneer, auction clerk or 15 29 auction cashier, or an auction service in the conduct of an 15 30 auction shall, investigate alleged violations and complaints 15 31 of this chapter by a licensed or unlicensed auctioneer, 15 32 associate auctioneer, auction clerk or auction cashier, or 15 33 auction service. 15 34 Sec. 16. NEW SECTION. 545A.16 PENALTIES. 15 35 1. A person who acts as an auctioneer, associate 16 1 auctioneer, auction clerk or auction cashier, or auction 16 2 service without first obtaining a license under this chapter 16 3 commits a simple misdemeanor. 16 4 2. A person who violates any other provisions of this 16 5 chapter, or a rule adopted by the commission in the 16 6 administration of this chapter for which no other penalty is 16 7 provided, commits a simple misdemeanor. 16 8 3. The commission shall adopt rules providing for civil 16 9 penalties in amounts as permitted by state law and as 16 10 determined by the commission. 16 11 Sec. 17. NEW SECTION. 545A.17 AUCTION CONTRACTS. 16 12 1. A licensee and each seller of personal property at an 16 13 auction which is to be conducted or managed within the state 16 14 shall enter into a written contract. Such contract must be 16 15 signed by all parties. 16 16 2. The written contract, at a minimum, shall contain the 16 17 following: 16 18 a. The auctioneer's, auction clerk's or auction cashier's, 16 19 and the auction service's name, trade or business name, and 16 20 the license number of the auctioneer, auction clerk or auction 16 21 cashier, or auction service. 16 22 b. The name of the owner or consignor of the property to 16 23 be auctioned. 16 24 c. A general description of the property to be sold. 16 25 d. Any restriction relating to conducting the auction and 16 26 a statement indicating whether the auctioneer, auction clerk 16 27 or auction cashier, or auction service is authorized to 16 28 purchase at the auction. 16 29 e. A description of all services to be provided and the 16 30 fee for such services, including whether a buyer's premium 16 31 will be assessed and, if so, the amount of such premium. 16 32 f. A statement indicating which party is responsible for 16 33 advertising and other auction expenses. 16 34 g. The date, location, and starting time of the auction, 16 35 if known. 17 1 h. A statement as to the responsibilities of each party 17 2 for the auction. 17 3 i. A statement by the seller that the seller has title or 17 4 right to sell all property to be sold at auction with 17 5 identification of those items which are subject to an 17 6 encumbrance or lien and the disclosure of the person or entity 17 7 holding an encumbrance or lien. 17 8 3. An owner or consignor of the property to be auctioned 17 9 shall be furnished with a copy of the contract. 17 10 4. Section 543B.7 applies to an auction involving real 17 11 property. 17 12 Sec. 18. NEW SECTION. 545A.18 ADVERTISING REQUIREMENTS. 17 13 1. An auctioneer, auction clerk or auction cashier, or 17 14 auction service who advertises to hold, conduct, or act as an 17 15 auction clerk or auction cashier at an auction within this 17 16 state shall indicate in such advertisement the name and 17 17 license number of the auctioneer, auction clerk or auction 17 18 cashier, or auction service. 17 19 2. This section does not pertain to advertisements for an 17 20 auction that is to be held in another state. 17 21 Sec. 19. NEW SECTION. 545A.19 EMPLOYMENT BY AUCTION 17 22 SERVICE. 17 23 A person licensed under this chapter shall not act as an 17 24 auctioneer, associate auctioneer, or auction clerk or auction 17 25 cashier for an auction service unless the auction service is 17 26 licensed under this chapter. 17 27 Sec. 20. NEW SECTION. 545A.20 EXEMPT TRANSACTIONS. 17 28 This chapter does not apply to a person who engages in any 17 29 of the following: 17 30 1. An auction conducted by order of the court pursuant to 17 31 Title 11 of the United States Code relating to bankruptcy. 17 32 2. An auction conducted by an employee of the United 17 33 States, or of this state or its political subdivisions, in the 17 34 course and scope of the employee's employment. 17 35 3. An auction conducted by a charitable or nonprofit 18 1 organization, if the auctioneer receives no compensation. 18 2 4. An auction conducted by an individual of that 18 3 individual's own property if such individual is not engaged in 18 4 the business of selling such property as an auctioneer on a 18 5 recurring basis. 18 6 5. A foreclosure auction of realty conducted personally by 18 7 a trustee under a deed of trust. 18 8 6. A foreclosure auction of personal property conducted 18 9 personally by the mortgagee, or other secured party, or an 18 10 employee or agent of such mortgagee or other secured party 18 11 acting in the course and scope of the employee's employment, 18 12 if the employee or agent is not engaged otherwise in the 18 13 auction business and if all property for sale at auction is 18 14 subject to a security agreement. 18 15 7. A sale conducted by sealed bid. 18 16 8. An auction conducted in a course of study for 18 17 auctioneers or auction clerks or auction cashiers and 18 18 conducted for student training purposes. 18 19 9. An auction conducted by a posted stockyard or market 18 20 agency as defined by the federal Packers and Stockyard Act, 18 21 1921, as amended, 7 U.S.C. } 181 et seq. 18 22 10. An auction of livestock conducted by a nonprofit 18 23 livestock trade association chartered in this state if the 18 24 auction involves only the sale of livestock of the trade 18 25 association's members. 18 26 11. An auction conducted by a charitable or nonprofit 18 27 organization chartered in this state if the auction involves 18 28 only the property of the organization or its members and the 18 29 auction is part of an event that is organized under state or 18 30 local authority. 18 31 Sec. 21. INITIAL IOWA AUCTION AND AUCTIONEER COMMISSION 18 32 APPOINTMENTS. The initial members of the Iowa auction and 18 33 auctioneer commission shall be appointed to the following 18 34 terms: 18 35 1. Two members shall be appointed for a term of three 19 1 years. 19 2 2. Two members shall be appointed for a term of two years. 19 3 3. One member shall be appointed for a term of one year. 19 4 EXPLANATION 19 5 This bill creates a new Code chapter 545A entitled the 19 6 "Iowa Auction and Auctioneer Licensing Act". 19 7 New Code section 545A.2 creates definitions for terms used 19 8 in the chapter including "associate auctioneer", "auction", 19 9 "auction clerk" or "auction cashier", "auctioneer", "auction 19 10 service", "certified auction school", "commission", 19 11 "licensee", "person", "property", "secured party", and "trust 19 12 account". 19 13 New Code section 545A.3 establishes the Iowa auction and 19 14 auctioneer commission consisting of five voting members 19 15 appointed by the governor and subject to senate confirmation. 19 16 Members of the commission are to serve three-year staggered 19 17 terms. Four members are to be appointed who represent 19 18 auctioneers, auction clerks and auction cashiers, associate 19 19 auctioneers, and auction services. One member is to be 19 20 appointed who represents the public. 19 21 New Code section 545A.4 establishes the duties of the 19 22 commission including maintaining a registry of licensees, 19 23 establishing licensing requirements, establishing continuing 19 24 education requirements, and adopting rules for the 19 25 implementation of the new Code chapter. 19 26 New Code section 545A.5 provides that the commission is to 19 27 establish and collect a reasonable fee for a license 19 28 application, examination, reexamination, issuance and renewal 19 29 of a license, and any delinquency fee. Such fees are to be 19 30 deposited in the auctioneer recovery and education fund. 19 31 New Code section 545A.6 establishes license requirements 19 32 for an auctioneer, associate auctioneer, auction clerk or 19 33 auction cashier, and auction service. 19 34 New Code section 545A.7 provides that the commission is to 19 35 establish license examinations for an auctioneer, associate 20 1 auctioneer, auction clerk or cashier, or auction service. The 20 2 commission is also required to prepare study and reference 20 3 materials on which the examinations are based. 20 4 New Code section 545A.8 establishes requirements for 20 5 nonresident licenses. 20 6 New Code section 545A.9 provides for a license certificate 20 7 and provides that the commission is to issue a renewal notice 20 8 to licensees no less than 90 days prior to the expiration of a 20 9 license. 20 10 New Code section 545A.10 establishes acts which are to 20 11 result in the denial, suspension, or revocation of a license. 20 12 New Code section 545A.11 provides that a licensee who does 20 13 not engage in any activity for which a license under the 20 14 chapter is required during the year succeeding the expiration 20 15 of the license may notify the commission to place the licensee 20 16 on the inactive list and the licensee shall not be required to 20 17 pay a license renewal fee for as long as the licensee remains 20 18 inactive and annually notifies the commission of such inactive 20 19 status. 20 20 New Code section 545A.12 creates the auctioneer recovery 20 21 and education fund to be used for the payment of the expenses 20 22 of the commission and for making payments to persons aggrieved 20 23 by a licensee. The commission is to maintain a minimum level 20 24 of $200,000 in the fund. The bill directs the commission to 20 25 assess an additional fee not to exceed $50 against licensees 20 26 for deposit into the fund. The additional fee is to be paid 20 27 upon making an initial application for a license and upon the 20 28 renewal of such license. 20 29 New Code section 545A.13 provides that a political 20 30 subdivision of the state is prohibited from levying or 20 31 collecting a license fee, tax, or other fee, or requiring any 20 32 license of an auctioneer, associate auctioneer, auction clerk 20 33 or auction cashier, or auction service who is subject to this 20 34 chapter. 20 35 New Code section 545A.14 provides that a licensee is to 21 1 maintain a trust account in a federally insured financial 21 2 institution. 21 3 New Code section 545A.15 provides for the investigation of 21 4 a complaint against a licensee by the commission. 21 5 New Code section 545A.16 provides that a violation of the 21 6 provisions of new Code chapter 545A is a simple misdemeanor. 21 7 The bill also authorizes the commission to establish civil 21 8 penalties. 21 9 New Code section 545A.17 provides that a written contract 21 10 is to be entered into between a licensee and each seller of 21 11 personal property at an auction. The bill provides that Code 21 12 section 543B.7 applies to an auction involving real property. 21 13 The bill establishes items which are to be included in any 21 14 such contract. 21 15 New Code section 545A.18 provides that an auctioneer, 21 16 auction clerk or auction cashier, or auction service who 21 17 advertises to hold, conduct, or act as a clerk or cashier at 21 18 an auction within this state shall indicate in such 21 19 advertisement the name and license number of the auctioneer, 21 20 auction clerk or auction cashier, and auction service. 21 21 New Code section 545A.19 prohibits a person from acting as 21 22 an auctioneer, auction clerk or auction cashier, or auction 21 23 service unless the person is licensed under the chapter. 21 24 New Code section 545A.20 establishes transactions which are 21 25 exempt from the requirements of new Code chapter 545A. 21 26 LSB 1001HH 78 21 27 mj/jl/8
Text: HF00070 Text: HF00072 Text: HF00000 - HF00099 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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