21 NCAC Section .04 Licensing PDF

**SECTION.0400 -- LICENSING** **21 NCAC 04B.0401 LICENSE NUMBER: DISPLAY OF LICENSE AND POCKET CARD** a. The Board shall issue to each individual or firm a non-transferable license number. If the number is retired for any reason such as death, failure to continue in the auction business,...

**SECTION.0400 -- LICENSING** **21 NCAC 04B.0401 LICENSE NUMBER: DISPLAY OF LICENSE AND POCKET CARD** a. The Board shall issue to each individual or firm a non-transferable license number. If the number is retired for any reason such as death, failure to continue in the auction business, or failure to renew his or her license, the Board shall not reissue the number. b. A pocket card shall be issued by the Board with the auctioneer, apprentice auctioneer, or auction firm\'s name, license number, and date of expiration. The pocket card shall be carried when auctioneering activities are being conducted by the licensee, and in the case of auction firms, each of the designated persons, and shall be available for inspection by the Executive Director or designated agent of the Board. c. An auction firm shall display its license in its premises, so as to be visible for inspection by patrons of the firm. *History Note: Authority G.S. 85B-3.1; 85B-4;* **21 NCAC 04B.0402 LICENSE RENEWAL** a. Any licensee seeking the renewal of a license that is in good standing shall submit the required fees, records, and documentation as set forth in 21 NCAC 04B.0801(a) and G.S. 143-788(a)(5) to verify the licensee\'s compliance with G.S. 85B and the rules in this Chapter. b. Applications for renewal of licenses shall only be processed by the Board upon receipt of the required fee and any records, documents, or information required by Paragraph (a) of this Rule. c. Any person or entity who engages in any auctioneering activities governed by the auctioneers law while the license is lapsed shall be subject to the penalties pursuant to G.S. 85B-9. d. Persons or firms whose license has been lapsed or suspended in excess of 24 months and who desire to be licensed shall apply for a new license and shall meet all the requirements in effect at that time. Persons or firms whose license has been lapsed or suspended in excess of 24 months and who desire to be licensed shall be exempt from the auctioneer school or the apprenticeship requirements if the continuing education requirements have been met for all lapsed or suspended years. *History Note: Authority G.S. 85B-3.1; 85B-4;* **21 NCAC 04B.0403 APPRENTICE AUCTIONEER LICENSE** a. An apprentice auctioneer\'s license shall be valid only while he or she is associated with and supervised by a licensed auctioneer approved by the Board. In order to be approved by the Board as a supervisor, the Board shall receive a written notice, signed by the prospective supervisor and the apprentice, requesting that the licensed auctioneer be approved as a supervisor for the apprentice. Upon receipt of such a request, the Board shall review the requested approval. The requested approval shall be denied by the Board if the prospective supervisor fails to possess a minimum of five years of active experience in the auctioneering profession or has committed any act that resulted in license suspension or revocation under the rules of this Subchapter or under G.S. 85B. b. The supervising auctioneer shall be on the premises of the sale location and supervise the apprentice auctioneer at all times that an apprentice auctioneer is engaged in bid calling. Additionally, the supervising auctioneer shall supervise the apprentice and ensure that the apprentice auctioneer conforms with the auctioneer law and the rules of this Subchapter. c. Any licensed auctioneer who undertakes the supervision of an apprentice auctioneer shall provide the apprentice with training and supervision in the following: 1. a working knowledge of the auction business including conduct of auctions, auctioneering ethics, contract drafting, bid calling, basic mathematical computations, advertising, and settlement statements; 2. the provisions of the licensing law; 3. the rules of this Subchapter; and 4. the preparation and maintenance of written agreements, record books, and other sales records as required by G.S. 85B-7. d. Apprentices shall not conduct or contract to conduct any auction without the prior express written consent of the supervisor(s). No supervisor shall authorize an apprentice to conduct or contract to conduct an auction, to act as principal auctioneer, or handle any funds related to an auction unless the supervisor has determined that the apprentice has received the training to do so. An apprentice auctioneer may work under more than one Boardapproved licensed auctioneer at any given time. e. The supervisor(s) shall ensure that the apprentice complies with all of the laws and Rules as they apply to any auction-related transaction approved by the supervisor. f. An apprentice auctioneer shall notify the Board, in writing, within 10 days of termination of his or her association with his or her supervising auctioneer, at which time his or her license shall be placed in an invalid status. If an apprentice auctioneer\'s supervising auctioneer\'s license has been suspended or revoked, the apprentice auctioneer\'s license shall be placed in an invalid status. Once in an invalid status, an apprentice auctioneer shall not conduct or contract to conduct any auction. If an apprentice\'s license is invalid greater than 90 days due to a lack of an approved sponsor, the apprentice upon securing an approved sponsor shall be required to submit a reinstatement fee as set forth in 21 NCAC 04B.0202(b)(10). Upon termination of the association between a supervisor and the apprentice, both licensees shall notify the Board in writing within 10 days, specifying the date and cause of termination. At this time the apprentice auctioneer\'s license shall be placed in an invalid status, unless at least one Board-approved supervisor remains in place for the apprentice. *History Note: Authority G.S. 85B-3.1; 85B-4; 85B-7;* **21 NCAC 04B.0404 GROUNDS FOR LICENSE DENIAL OR DISCIPLINE** a. The Board may assess a civil penalty in accordance with G.S. 85B-3.1(b) or deny, suspend, or revoke a license, or issue a letter of reprimand to a licensee, upon any of the following grounds: 1. violation of any provision of G.S. 85B; 2. violation of any rule in this Subchapter; 3. a check given to the Board in payment of fees is returned unpaid; 4. allowing an unlicensed person to call a bid at a sale, except as authorized in 21 NCAC 04B.0506; (5) auctioneering at an unlicensed auction firm sale; 6. failure to complete an application or making any false statement or giving any false information in connection with an application for a license, renewal, or reinstatement of a license including: A. failure to cooperate with any investigation; or B. making any false statement or giving any false information in connection with any investigation by the Board or the Board\'s staff; 7. being adjudicated mentally incompetent by a court; 8. being convicted of a crime that meets the requirements of G.S. 93B-8.1(b); 9. violation of any federal or state statute, rule, or regulation that relates to the auctioneering profession; 10. practicing the profession for which the individual is licensed while his or her ability to practice was impaired by alcohol or other drugs or physical or mental disability or disease; 11. being incompetent in practice. In this Subparagraph, \"being incompetent in practice\" means the licensee has engaged in conduct that shows a lack of ability, fitness, or knowledge to apply principles or skills of the auctioneering profession; 12. engaging in unprofessional conduct. In this Subparagraph, \"unprofessional conduct\" means the licensee has committed any prohibited act as set forth in G.S. 85B-8(a); 13. obtaining or attempting to obtain compensation by fraud or deceit; 14. violation of any order of the Auctioneer Licensing Board requiring a licensee to comply with any provision of the Board\'s law or administrative rules; 15. failure to possess truth, honesty, and integrity sufficient to be entitled to the high regard and confidence of the public. In this Subparagraph, \"a lack of truth, honesty, and integrity\" shall be shown by proof that the applicant or licensee is in violation of other provisions of the Board\'s law and administrative rules that demonstrate that the applicant or licensee fails to meet this standard; or 16. failure to make the disclosures required by 21 NCAC 04B.0405. b. When applying the requirements of Paragraph (a) of this Rule to auction firms or their applications, the requirements shall apply to the firm, all the principals, and all of the designated persons of the firm. *History Note: Authority G.S. 85B-3.1; 85B-8; Eff. November 1, 1984;* **21 NCAC 04B.0405 INVOLVEMENT IN COURT ACTION OR ADMINISTRATIVE HEARING** a. All auctioneers, apprentice auctioneers, and auction firms, including their principals and designated person(s), shall report to the Board all criminal arrests for, charges of, or convictions of a misdemeanor that has as an element dishonesty, deceit, fraud, or misrepresentation, or any arrests, charges, or convictions of any felony. Convictions include findings of guilt, guilty pleas, and pleas of nolo contendere. The Board shall receive written notice of any such arrest, charge, or criminal conviction within 30 days of the occurrence of any or all of these events. b. All auctioneers, apprentice auctioneers, and auction firms, including their principals and designated person(s), shall report to the Board all civil suits involving them that are based upon any allegation of gross negligence, dishonesty, fraud, misrepresentation, or incompetency, or that in any way involve an auction sale or a transaction related to an auction matter or auctioneering. The Board shall receive written notice of any such civil suit within 30 days of the date the complaint in the suit is served on the defendant in the action, or the date a pleading containing one or more of these allegations is served on a party. c. All auctioneers, apprentice auctioneers, and auction firms, including their principals and designated person(s), shall report to the Board all administrative proceedings commenced against them that involve any potential revocation or suspension of, or other disciplinary action against, any auction license or auctioneer license that they hold in another state. The Board shall receive written notice of any such administrative proceeding within 30 days of the date the auctioneer, apprentice auctioneer, or auction firm, including its principals and designated person(s), is notified of the administrative proceeding. *History Note: Authority G.S. 85B-3.1; 85B-4;*