THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY M. K. KELLER, DENLINGER, ADOLPH, BRENNAN, BROOKS, CLYMER, DeLUCA, EVANKOVICH, EVERETT, FLECK, GABLER, GERGELY, GILLESPIE, GINGRICH, GODSHALL, GRELL, GROVE, HELM, HESS, KAMPF, KNOWLES, KULA, MACKENZIE, MATZIE, MILLARD, MILLER, MILNE, MOUL, PEIFER, PICKETT, PYLE, REED, REESE, ROAE, ROCK, ROSS, SAYLOR, STURLA, TOEPEL, PETRARCA, BENNINGHOFF AND FRANKEL, AUGUST 23, 2012

REFERRED TO COMMITTEE ON PROFESSIONAL LICENSURE, AUGUST 23, 2012  

AN ACT

Amending the act of December 22, 1983 (P.L.327, No.85),

entitled, as amended, "An act imposing regulations and

licensing requirements on auctioneers, apprentice

auctioneers, auction houses, auction companies and trading

assistants; imposing powers and duties on the State Board of

Auctioneer Examiners; and making repeals," further providing

for the title of the act, for definitions, for auctioneer and

apprentice auctioneer licenses, for status of existing

licensees and for applications for initial and renewal

licenses; providing for registration of trading assistants

and trading assistant companies; further providing for

special licensees to furnish bond and for authority to

transact business not transferable; repealing provisions

relating to auction house license, auction company license,

trading assistant registration and nonresident licensees;

further providing for reciprocity with other states;

repealing provisions relating to licensee and registrant to

furnish bond; and further providing for no other license or

registration required, for list of licensees and registrants,

for records of sales, for contracts for conduct of

transaction, for display of licenses, for investigations and

enforcement actions, for escrow account, for hearing on

charges, for administration and enforcement, for revocation

or suspension of license or registration, for issuance of new

license or registration pending investigation and decision,

for issuance of new license or registration after revocation,

for penalties and for actions by unlicensed persons

prohibited.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  The title of the act of December 22, 1983

(P.L.327, No.85), known as the Auctioneer Licensing and Trading

Assistant Registration Act, amended October 8, 2008 (P.L.1080,

No.89), is amended to read:

AN ACT

Imposing regulations and licensing requirements on auctioneers,

apprentice auctioneers, auction [houses, auction] companies,

trading assistants and trading [assistants] assistant

companies; imposing powers and duties on the State Board of

Auctioneer Examiners; and making repeals.

Section 1.1.  Section 2 of the act, amended October 8, 2008

(P.L.1080, No.89), is amended to read:

Section 2.  Definitions.

The following words and phrases when used in this act shall

have the meanings given to them in this section unless the

context clearly indicates otherwise:

"Apprentice auctioneer."  [A person] An individual who is

licensed under this act as an apprentice auctioneer.

"Auction" or "sale at auction."

(1)  The offer [to sell] for sale of property [by an

auctioneer or apprentice auctioneer to the members of an

audience congregated for the purpose of making bids for the

purchase of the property] through the solicitation of bids

from one or more potential buyers in an effort [by the

auctioneer or apprentice auctioneer] to advance the amount of

the bids to obtain the highest or most favorable offer,

regardless of the venue or format utilized.

(2)  The term "auction" or "sale at auction" includes:

(i)  live auctions;

(ii)  online auctions;

(iii)  real-time auctions;

(iv)  extended auctions; and

(v)  any similar such events as may be devised with

the development of technology, or otherwise involving the

sale of property and the advancement of the price through

a bidding process.

(3)  The term "auction" or "sale at auction" excludes any

sale conducted through an [online] Internet [bidding]

competitive consignment sale platform.

"Auction company."  [A company which, as part of its

business, arranges, manages, sponsors, advertises or carries out

auctions.] A legally recognized entity which sells or attempts

to sell property at auction or performs, or offers to perform,

any of the functions or activities requiring licensure as an

auction company under section 3(a)(1). The term includes any

legally recognized entity which holds itself out as engaged in

the business of selling property at auction.

"Auction house."  An established place of business,

including, but not limited to, an auction barn, a sale barn and

a sale pavilion, where two or more auctions are held within any

12-month period and where representations are regularly made

that property is sold at auction. The term does not include

premises where isolated or periodic sales are conducted by an

auctioneer or auctioneer apprentice and which are used primarily

for purposes other than auctions or sales at auction.

"Auctioneer."  [A person] An individual who sells or offers

or attempts to sell property at auction. The term includes [any

person who holds] an individual who:

(1)  Engages in or offers the calling for and recognition

of bids at auction.

(2)  Engages in or offers any of the activities of an

auction company.

(3)  Performs, or offers to perform, any of the functions

or activities requiring licensure under section 3(a)(1).

(4)  Holds himself out as engaged in the business of

selling property at auction.

"Auctioneer-of-record."  The licensed auctioneer designated

by an auction company as its auctioneer-of-record. The

auctioneer-of-record is principally responsible for the conduct

of the auctions of the auction company in accordance with this

act.

"Board."  The State Board of Auctioneer Examiners [in the

Department of State].

"Commissioner."  The Commissioner of Professional and

Occupational Affairs in the Department of State.

"Department."  The Department of State.

"Extended auction."  An auction or sale at auction conducted

in whole or in part online at which bids are received over an

extended period of time identified by a starting time and ending

time that may encompass multiple minutes, hours, days or other

periods.

"Internet competitive consignment sale platform."  Hardware

or software architecture that provides or enables computer

access by multiple users to an interactive computer server for

the purpose of allowing users to offer property for sale and

that does not examine, set the price or prepare the description

of the property to be offered.

"Legally recognized entity."  A partnership, association,

corporation, limited liability company or other entity

recognized under the laws of this Commonwealth or any other

state.

"Licensee."  [A person licensed under this act including an

auctioneer, apprentice auctioneer, holder of a special license

and, in the case of an auction house or company, the person

required to obtain the license.] An individual licensed under

this act as an auctioneer, apprentice auctioneer or holder of a

special license and a legally recognized entity licensed under

this act as an auction company.

"Live auction."  An auction or sale at auction at which one

or more members of an audience are present in person, are

communicating telephonically or by other digital or electronic

means or are participating by absentee bid.

"Online auction."  An auction or sale at auction conducted

over the Internet or similar interactive communication media.

["Online Internet bidding platform."  Hardware or software

architecture that provides or enables computer access by

multiple users to an interactive computer server for the purpose

of allowing users to offer property for sale and that does not

examine, set the price or prepare the description of the

property to be offered.]

"On-site auction."  An auction or sale at auction conducted

at the seller's residential or business location where the

property to be sold is located.

"Person."  An individual[, partnership, association,

corporation, limited liability company or other] or a legally

recognized entity.

"Property."  Real and personal property, including both

tangible and intangible personal property. The term includes,

but is not limited to, domestic animals and farm products.

"Qualified [auctioneer] sponsor."  A currently licensed

auctioneer residing in this Commonwealth.

"Real-time auction."  An auction or sale at auction at which

bids are solicited and received contemporaneously, in real time.

"Registrant."  A person registered under this act as a

trading assistant or a trading assistant company.

"Seller."  The owner of property, or the legal representative

or agent of the owner of property, who consigns or otherwise

agrees to have the property sold at auction or sale by auction

or by way of an Internet competitive consignment sale platform.

"Special licensee."  The holder of a special license issued

pursuant to section 3.

"Temporary venue."  A venue, including a rented hall, used

primarily for other purposes, at which an auction or sale at

auction is held by an auction company or an auctioneer,

regardless of the frequency of the auctions or sales at auction.

"Trading assistant."  An individual who, for a commission or

fee, conducts or intends to conduct a business within this

Commonwealth of accepting personal property [to sell] on

consignment from the owner or seller of the personal property to

be sold on behalf of [another] the owner or seller through an

[online] Internet [bidding] competitive consignment sale 

platform, or who performs, or offers to perform, any of the

functions or activities requiring registration under section

5.1(a).

"Trading assistant company."  A legally recognized entity

that for a commission or fee, conducts or intends to conduct a

business within this Commonwealth of accepting personal property

on consignment from the owner or seller of such personal

property, to be sold on behalf of the owner or seller through an

Internet competitive consignment sale platform, or who performs,

or offers to perform, any of the functions or activities

requiring registration under section 5.1(a).

Section 2.  Section 3 of the act, amended October 8, 2008

(P.L.1080, No.89), is amended to read:

Section 3.  Auctioneer [and], apprentice auctioneer, auctioneer

company and special licenses.

(a)  Requirement for license.--[Notwithstanding section 10.1,

it]

(1)  It is unlawful for any person to engage in or carry

on the business or profession of an auctioneer or an auction

company, to conduct [a] an auction or sale at auction, to

hold himself out as an auctioneer or as an apprentice

auctioneer, to hold itself out as an auction company or to

offer to conduct auctions or sales at auction in this

Commonwealth without first obtaining from the board a license

as an auctioneer [or apprentice auctioneer. Any member,

officer or employee of a partnership, association or

corporation who attempts to sell at auction or who is

actively engaged in the auction profession must have a

license as an auctioneer or apprentice auctioneer.],

apprentice auctioneer, auction company or special license.

(2)  (i)  Without limiting the other provisions of this

subsection, and regardless of whether the computer system

or server utilized in connection with an online auction

is physically located within this Commonwealth or outside

this Commonwealth, a license under this act shall be

required for any person offering to conduct or agreeing

to conduct an online auction, or conducting an online

auction, if:

(A)  the seller or owner is situate in this

Commonwealth at the time the offer is made, the

agreement is made or the online auction is held;

(B)  the online auction involves the sale of real

property situate in this Commonwealth; or

(C)  the online auction involves the sale of

personal property situate in this Commonwealth at the

time the offer is made, the agreement is made or the

online auction is held.

(ii)  Under this section licensure is not required

under circumstances in which the owner or seller

initiates contact with an auctioneer, auction company or

other provider of auction services located outside of

this Commonwealth to sell personal property at an online

auction outside of this Commonwealth.

(3)  Any owner, member, officer or employee of an auction

company who engages in or offers the calling for and

recognition of bids at an auction must have a license as an

auctioneer or apprentice auctioneer.

(4)  Licensees under this act shall be authorized to

conduct auctions at any venue within this Commonwealth,

including on-site auctions and auctions held at auction

houses and temporary venues, and in any format, including

live auctions and online auctions, whether real-time or

extended, together with any and all related activities.

Events constituting auctions and auction-related activities

shall not be limited by technology existing as of the

effective date of this paragraph.

[(b)  Issuance and supervision of licenses.--It is the duty

of the board, upon payment of the license fees required and upon

compliance with the requirements of this act, to issue a license

as an auctioneer or apprentice auctioneer to individuals or as

an auctioneer to partnerships, associations and corporations who

qualify under and comply with this act. The board shall

supervise and control all licenses issued under this act.]

(c)  Qualifications in general for license.--[Licenses]

Auctioneer, apprentice auctioneer and special auctioneer

licenses shall be granted only to [persons] individuals who have

a good reputation for honesty, truthfulness, integrity and

competence to transact the business of an auctioneer or

apprentice auctioneer in a manner as to safeguard the interest

of the public and only after satisfactory proof of these

qualifications has been presented to the board as required by

this act and regulation.

(d)  [Qualifications for apprentice] Apprentice auctioneer

license.--To qualify for an apprentice auctioneer license, [a

person] an individual must be sponsored and employed for

compensation by a qualified [auctioneer] sponsor who employs no

more than one other apprentice auctioneer.

(e)  [Qualifications for auctioneer] Auctioneer license.--To

qualify for an auctioneer license, [a person] an individual must

have passed the prescribed examination after having:

(1)  served an apprenticeship as a licensed apprentice

auctioneer for a period of not less than two years in the

employ of a qualified [auctioneer] sponsor and participated

for compensation in no less than 30 auctions; or

(2)  successfully completed a prescribed course of study

in auctioneering of at least 20 credit hours at a school

approved by the board.

(e.1)  Auction company license.--

(1)  Every legally recognized entity shall, before

operating as an auction company, obtain an auction company

license issued by the board.

(2)  Every auction company shall designate an auctioneer-

of-record. Each auction company licensed under this act shall

designate an individual licensed as an auctioneer under this

act to serve as the auction company's auctioneer-of-record.

The designation of the auctioneer-of-record shall be made in

the initial application for licensure as an auction company

and in each application for renewal of an auction company

license. The auctioneer-of-record may be an employee,

independent contractor or other agent of the auction company,

and there shall be no requirement that the auctioneer-of-

record have an ownership interest in, or be an officer of,

the auction company. The auctioneer-of-record is principally

responsible for the conduct of the auctions of the auction

company in accordance with this act. However, nothing in this

act shall limit or restrict the ability of an auction company

to utilize the services of one or more auctioneers in

addition to the auctioneer identified as auctioneer of

record, and it shall not be necessary for the auctioneer-of-

record to be present at every auction conducted by the

auction company, provided that a licensed auctioneer is

present to conduct the activities required to be conducted by

a licensed auctioneer under this act and to supervise any

apprentice auctioneer. An auction company license becomes

invalid if the license of the auctioneer-of-record is not

renewed or is suspended or revoked or if the auctioneer-of-

record becomes deceased or otherwise ceases to be the auction

company's auctioneer-of-record without substitution by a

successor auctioneer-of-record.

(3)  Within 15 calendar days after an auction company's

auctioneer-of-record ceases to serve as auctioneer-of-record,

both the auction company and the auctioneer-of-record shall

have the obligation to notify the board in writing of the

termination of such status.

(f)  [Qualifications for license reissued] Reissuance of

license after long inactivity.--Any [person] individual to whom

an auctioneer or apprentice auctioneer license has been issued

and who has been inactive as an auctioneer or apprentice

auctioneer for a period of seven years without renewing the

license issued to him shall be required to submit to and pass an

examination approved by the board prior to having a license

reissued to him.

[(g)  Designation of auctioneer-of-record.--If the applicant

for a license is a partnership, association or corporation, then

a member of the partnership or association or an officer of the

corporation, who is licensed in this Commonwealth as an

auctioneer, must be designated as the auctioneer-of-record. The

auctioneer-of-record is principally responsible for the conduct

of the auctions of the partnership, association or corporation

in accordance with this act. A partnership, association or

corporation auctioneer license becomes invalid if the license of

the auctioneer-of-record is not renewed or is suspended or

revoked.]

(g.1)  Special license to conduct auction.--An auctioneer or

auction company authorized to engage in auctioneering in another

state shall, on application and payment of the license fee, be

issued a special license for each specifically identified

auction conducted in this Commonwealth. Applications must be

made 20 days in advance of the auction or sale at auction and

must include the name and address of the consignor or owner of

all items to be sold. All applications are subject to approval

by the board and shall include proof of authority to engage in

auctioneering in the other state.

[(h)  Sales exempt from license requirements.--

The requirement to obtain a license under this act does not

apply to sales at auction in the following circumstances:

(1)  To a specified single sale per year conducted by the

owner of property if the owner is not engaged in the business

of selling the property and if the property is owned by the

person in an individual capacity.

(2)  To a sale conducted by or on behalf of a charitable

organization if the person conducting the sale receives no

compensation therefor.

(3)  To a sale conducted by or on behalf of a person

appointed by judicial order or decree.

(4)  To a sale conducted in the settlement of any

decedent's estate.

(5)  To a sale conducted by or under the direction of any

public authority.

(6)  To any sale required by law to be at auction.

(i)  Special license to conduct auction.--An auctioneer

authorized to engage in auctioneering in another state shall,

upon application and payment of the license fee, be issued a

special license for each auction conducted by him. Applications

must be made 20 days in advance of the sale and must include the

name and address of the consignor or owner of all items to be

sold. All applications are subject to approval by the board and

shall include proof of authority to engage in auctioneering in

the other state.]

Section 2.1.  The act is amended by adding a section to read:

Section 3.1.  Sales exempt from license requirements.

The requirement to obtain a license under this act does not

apply to sales at auction in the following circumstances:

(1)  To a specified single sale per year conducted by the

owner of property if the owner is not engaged in the business

of selling the property and if the property is owned by the

person in an individual capacity.

(2)  To a sale conducted by or on behalf of a charitable

organization if the person conducting the sale receives no

compensation therefor.

(3)  To a sale conducted by or on behalf of a person

appointed by judicial order or decree.

(4)  To a sale conducted in the settlement of any

decedent's estate conducted by the executor or administrator

of the estate.

(5)  To a sale conducted by or under the direction of any

public authority.

Section 3.  Section 4 of the act is amended by adding a

subsection to read:

Section 4.  Status of existing licensees.

* * *

(c)  Licensed auction houses.--An auction house license

issued under and pursuant to this act and existing on the

effective date of this paragraph shall remain in full force and

effect through February 28, 2013, at which time the license

shall expire and shall not be subject to renewal. Thereafter,

auction house licenses will no longer be issued or renewed in

this Commonwealth, and any holder of an auction house license as

of February 28, 2013, who is not also the holder of an auction

company license shall be required to obtain either an auction

company license or an auctioneer's license in order to continue

in the business and profession of auctioneering in this

Commonwealth.

Section 4.  Section 5 of the act, amended October 8, 2008

(P.L.1080, No.89), is amended to read:

Section 5.  Applications for initial and renewal licenses.

(a)  Application for auctioneer license.--Applications for

license as an auctioneer shall be made to the board in writing

[upon] on forms provided by the board which shall contain such

information as [to the individual or, if the applicant is a

partnership, association or corporation, as to its members or

officers, as] the board requires. [If the applicant is an

individual, the application shall be signed by that individual.

If the applicant is a partnership or an association, the

application shall be signed by a member. If the applicant is a

corporation, the application shall be signed by an officer.] An

application by a licensed apprentice auctioneer seeking to

qualify on the basis of an apprenticeship shall contain or be

accompanied by satisfactory evidence that the applicant was in

the employ of a sponsor for at least two years and participated

for compensation in not less than 30 auctions on the dates and

at the locations provided by the applicant. Upon the filing of

an application, the board shall investigate the allegations

contained in the application and if, upon investigation, it

finds the allegations untrue, it may refuse to examine or

license the applicant or may revoke any license issued to the

applicant on the basis of materially untrue allegations

contained in the application for a license. The board shall set

forth in writing its findings and reasons for its refusal or

revocation and furnish a copy to the applicant.

(b)  Application for apprentice auctioneer license.--

Applications for license as an apprentice auctioneer shall be

made to the board in writing [upon] on forms provided by the

board which shall contain such information as to the applicant

as the board requires. For license renewals, the licensee shall

set forth the period of time, if any, during which [he] the

apprentice auctioneer was engaged in the auction profession,

stating the name of [his present] the apprentice auctioneer's

current sponsor and any former sponsor for the period of five

years immediately preceding the date of the renewal. If it

becomes necessary to change sponsors, the apprentice auctioneer

must notify the board by letter upon the termination of the

sponsorship and submit a transfer form, provided by the board,

when a new sponsor is obtained. An apprentice auctioneer license

is invalid when there is no sponsoring auctioneer and credit

does not accrue during that time. A license will be reissued

when the apprentice auctioneer submits a transfer form which

informs the board that [he] the apprentice auctioneer has

secured a new sponsor.

(b.1)  Application for auction company license.--Every

legally recognized entity seeking an auction company license

shall file with the board an application in writing on forms

provided by the board which shall contain such information as to

the applicant and as to the members or officers of the

applicant, as the board shall require. Each application shall

identify an auctioneer-of-record. On the filing of an

application, the board shall investigate the allegations

contained in the application and if, on investigation, it finds

the allegations untrue, it may refuse to license the applicant

to operate an auction company.

(c)  [Examinations] Auctioneer examinations.--The board shall

contract with a professional testing organization for the

preparation and administration of the auctioneer examination, in

accordance with section 812.1(a) of the act of April 9, 1929

(P.L.177, No.175), known as The Administrative Code of 1929. [No

person] Except as otherwise provided under this act or by

regulation, no individual may be issued an auctioneer license

unless the [person] individual passes an examination approved by

the board. The board shall hold examinations at locations, times

and dates prescribed by regulation of the board.

(d)  Issuance of new license after revocation.--In the event

the license of an auctioneer or an apprentice auctioneer is

revoked by the board subsequent to the effective date of this

act, no new license may be issued to that person until he

complies with all the provisions of this act.

(e)  Expiration and renewal of license.--All licenses issued

by the board shall be for a maximum term of two years and shall

expire on the last day of February of each odd year. It is the

duty of all persons licensed to practice as an auctioneer [or], 

apprentice auctioneer [or to operate as an auction house] or

auction company to renew the license biennially with the board

and to pay the license fee for each biennial license renewal.

Applications for renewals of licenses issued under this act

shall be made within 60 days prior to the expiration of the

license [upon] on forms and in the manner provided by the board.

(f)  Internet sales.--An applicant or licensee renewing a

license under this section must indicate to the board whether or

not sales will be conducted via an [online] Internet [bidding]

competitive consignment sale platform.

Section 5.  The act is amended by adding a section to read:

Section 5.1.  Registration of trading assistants and trading

assistant companies.

(a)  Requirement for registration.-–It shall be unlawful for

an individual to act as a trading assistant, or for any legally

recognized entity to act as a trading assistant company, for a

sale, or offer to sell, conducted on an Internet competitive

consignment sale platform without either first registering with,

or obtaining licensure from, the board. A legally recognized

entity conducting business as a trading assistant must register

as a trading assistant company even though a member or officer

is registered as a trading assistant. Registration is required

on a biennial basis, and renewal shall be due on the last day of

February of each odd year.

(b)  Application.--Application for registration under this

section shall include the following:

(1)  The name of the applicant, the business and the

physical location where the business will be conducted.

(2)  The date the applicant will begin accepting goods

for sale through an Internet competitive consignment sale

platform.

(3)  The applicant's Pennsylvania tax identification

number.

(4)  The applicant's e-mail address.

(c)  Fee.--A registration fee of $100 shall be included with

each application for registration or renewal. The fee may be

established by the board by regulation.

(d)  Renewal.--It is the duty of all registrants to renew the

registration biennially with the board and to pay the fee for

each biennial registration.

Section 6.  Sections 7 and 8 of the act are amended to read:

Section 7.  [Special licensees] Licensees and registrants to

furnish bond.

(a)  General rule.--[A] No license, including a special

license, or registration shall be granted or issued to any

person under this act until the applicant has filed with the

board an approved bond payable to the Commonwealth in the [penal

sum] amount of $5,000 [shall accompany every application for a

special license]. The bond shall be executed by a surety company

authorized by the laws of this Commonwealth to transact business

in this Commonwealth. The bond shall be for the use of the

Commonwealth and for any person or persons who may have a cause

of action against a licensee [arising] or registrant under this

act.

(b)  Conditions of bond.--The [conditions] condition of the

bond shall be that the licensee, including a special licensee or

registrant, will comply with and abide by the provisions of this

act and will pay to the Commonwealth, the board or any person or

persons any and all money that may come due to the Commonwealth,

the board or the person or persons from a licensee or registrant 

under and by virtue of this act.

(c)  Action on bond.--If any person is aggrieved by the

misconduct of any licensee, including a special licensee or

registrant and recovers judgment against the licensee or

registrant therefor, the person may on any execution issued

under the judgment maintain an action upon the bond of the

licensee or registrant in any court having jurisdiction of the

amount claimed.

Section 8.  Authority to transact business not transferable.

The authority to transact business as an auctioneer,

apprentice auctioneer[, auction house] or auction company

licensed under [a license issued by the board] this act, or as a

trading assistant or trading assistant company registered under

this act, is restricted to the person named in the license or

registration and may not be transferred to the benefit of any

other person. [A partnership, association or corporation

licensed under this act is only permitted to transact auction

business through a member, officer or employee who is licensed

under this act.]

Section 7.  Sections 9 and 10 of the act are repealed:

[Section 9.  Auction house license.

(a)  Requirement for license.--Every person, except an

individual who is licensed as an auctioneer, shall, before

operating an auction house, obtain a license from the board to

operate the auction house. Every partnership, association or

corporation must obtain a license even though a member or

officer is licensed as an auctioneer.

(b)  Application for license.--Every person seeking a license

to operate an auction house shall file with the board an

application in writing upon forms provided by the board which

shall contain such information as to the individual or, if the

applicant is a partnership, association or corporation, as to

the members or officers, as the board requires. A person must

file a separate application for each auction house to be

operated. The application shall be accompanied by the license

fee and surety bond required by this act.

(c)  Investigation and refusal of license.--Upon the filing

of an application, the board shall investigate the allegations

contained in the application and, if, upon investigation, it

finds the allegations untrue, it may refuse to license the

applicant to operate an auction house.

(d)  Information from auctioneer.--A licensed auctioneer who

also operates an auction house shall notify the board in writing

of the address of each auction house operated by him and of the

trade or business name by which each auction house is known. The

auctioneer shall notify the board in writing if the operation of

the auction house is sold or discontinued or if the name or

location of the auction house is changed.

Section 10.  Auction company license.

(a)  Requirement for license.--Every person, except an

individual who is licensed as an auctioneer or an individual who

is licensed to operate an auction house, shall, before operating

an auction company, obtain a license from the board to operate

the auction company. Every partnership, association or

corporation must obtain a license even though a member or

officer is licensed as an auctioneer.

(b)  Application for license.--Every person seeking a license

to operate an auction company shall file with the board an

application in writing upon forms provided by the board which

shall contain such information as to the individual or, if the

applicant is a partnership, association or corporation, as to

the members or officers, as the board requires. Each application

shall be accompanied by the license fee and surety bond required

by this act.

(c)  Investigation and refusal of license.--Upon the filing

of an application, the board shall investigate the allegations

contained in the application and, if, upon investigation, it

finds the allegations untrue, it may refuse to license the

applicant to operate an auction company.

(d)  Information from auctioneer or auction house.--A

licensed auctioneer or an individual licensed to operate an

auction house, who also operates an auction company, shall

notify the board in writing that he is operating an auction

company and shall specify the trade or business name and the

address of the principal place of business of each auction

company which he operates. The individual who is licensed as an

auctioneer or to operate as an auction house shall notify the

board in writing if the operation of the auction company is sold

or discontinued or if the name or location of the auction

company is changed.]

Section 8.  Section 10.1 of the act, added October 8, 2008

(P.L.1080, No.89), is repealed:

[Section 10.1.  Trading assistant registration.

(a)  Requirement for registration.--It shall be unlawful for

any individual to act as a trading assistant for a sale

conducted by competitive bidding without either first

registering with or obtaining licensure from the board.

Registration is required on a biennial basis.

(b)  Application.--Application for registration under this

section shall include the following:

(1)  Name of the applicant, the business and the physical

location where the business will be conducted.

(2)  Date the applicant will begin accepting goods for

sale through an online Internet bidding platform.

(3)  Pennsylvania tax identification number.

(4)  E-mail address.

(c)  Fee.--A registration fee of $100 shall be included with

each application for registration.]

Section 9.  Section 11 of the act is repealed:

[Section 11.  Nonresident licensees.

(a)  General rule.--A nonresident of this Commonwealth may be

licensed as an auctioneer or apprentice auctioneer or to operate

an auction house or auction company upon complying with all the

provisions and conditions of this act required of residents of

this Commonwealth.

(b)  Waiver of certain requirements.--The board may waive the

requirement for serving an apprenticeship or completing a course

of study in auctioneering if the nonresident was:

(1)  licensed by another state for at least two years; or

(2)  established in the business of auctioneering for at

least two years and, in the case of states that do not

require a license, the board reviews the application to

determine the qualifications of the applicant.

(c)  Limitation on type of property sold.--The nonresident

auctioneer or apprentice auctioneer is only permitted to sell at

auction in this Commonwealth whatever property the laws of his

state permit nonresident auctioneers and apprentice auctioneers

to sell at auction.

(d)  Ineligibility to sponsor apprentices.--A nonresident

auctioneer is not a qualified auctioneer for the purpose of

sponsoring or employing an apprentice auctioneer.]

Section 10.  Section 12 of the act is amended to read:

Section 12.  Reciprocity with other states.

(a)  [General rule.--A nonresident of this Commonwealth who

applies for a license as an auctioneer or apprentice auctioneer

may be granted a license for which he applies if he is licensed

as an auctioneer or apprentice auctioneer by the proper

authority of the state of his domicile,] Licensure by

reciprocity.--In accordance with regulations promulgated by the

board, a person who is licensed in good standing as an

auctioneer, apprentice auctioneer or auction company in another

state may on application to the board be granted licensure as an

auctioneer, apprentice auctioneer or auction company in this

Commonwealth upon the payment by the applicant of the proper

[license] application fee and the filing with the board of a

properly certified copy of the license issued to the applicant

by the [state of his domicile, subject to the following

limitations:

(1)  The auctioneer licensing laws of the nonresident

state must extend to licensed auctioneers and apprentice

auctioneers of this Commonwealth the same rights and

privileges and the same authority to conduct auction sales in

that state as this act extends to nonresidents of this

Commonwealth without the necessity of the licensed

auctioneers and apprentice auctioneers of this Commonwealth

to obtain additional or further licenses or authority from

any political subdivision of that state to conduct an auction

sale.

(2)  The nonresident auctioneer or apprentice auctioneer

is only permitted to sell at auction in this Commonwealth

whatever property the laws of his state permit nonresident

auctioneers and apprentice auctioneers to sell at auction.

(b)  Bond.--The bond required by this act shall accompany the

application.

(c)  Change of nonresident status.--The movement from another

state or jurisdiction to domicile in this Commonwealth

eliminates the possibility of reciprocal licensing set forth in

this section and the individual must qualify for a license under

terms of this act which are applicable to residents of this

Commonwealth.] applicant's current licensing state, provided

that:

(1)  the requirements for licensure in the applicant's

current licensing state are, in the determination of the

board, commensurate with the requirements for licensure in

this Commonwealth;

(2)  the licensing laws of the applicant's current

licensing state extend to licensees of this Commonwealth the

same reciprocal rights and privileges in that state without

the necessity of the licensees in this Commonwealth to obtain

additional or further licenses or authority from any

political subdivision of that state; and

(3)  the applicant satisfies all other requirements of

licensees and applicants for licensure in this Commonwealth,

including the requirement to furnish a bond.

(b)  Regulations governing reciprocity.--The board shall

adopt regulations setting forth the requirements for licensure

by reciprocity under this act.

Section 11.  Section 13 of the act, amended October 8, 2008

(P.L.1080, No.89), is repealed:

[Section 13.  Licensee and registrant to furnish bond.

(a)  General rule.--An auctioneer, apprentice auctioneer,

auction company or auction house license or trading assistant

registration shall not be granted or issued to any person until

the applicant has filed with the board an approved bond payable

to the Commonwealth in the amount of $5,000. The bond shall be

executed by a surety company authorized by the laws of this

Commonwealth to transact business in this Commonwealth. The bond

shall be for the use of the Commonwealth and for any person or

persons who may have a cause of action against a licensee or

registrant under this act.

(b)  Conditions of bond.--The condition of the bond shall be

that the licensee or registrant will comply with and abide by

the provisions of this act and will pay to the Commonwealth, the

board or any person or persons any and all money that may come

due the Commonwealth, the board or the person or persons from a

licensee or registrant under and by virtue of this act.

(c)  Action on bond.--If any person is aggrieved by the

misconduct of any licensee or registrant and recovers judgment

against the licensee or registrant therefor, the person may, on

any execution issued under the judgment, maintain an action upon

the bond of the licensee or registrant in any court having

jurisdiction of the amount claimed.]

Section 12.  Sections 14, 15, 16 and 17 of the act, amended

October 8, 2008 (P.L.1080, No.89), are amended to read:

Section 14.  No other license or registration required.

No political subdivision of this Commonwealth shall have the

power or authority to levy or collect any license tax or fee

which is either a regulatory or a revenue measure upon or from

any [auctioneer or apprentice auctioneer or trading assistant

licensed or registered] licensee or registrant under this act

nor to require any [auctioneer or apprentice auctioneer]

licensee or registrant to be licensed by the political

subdivision in order to carry on the business of auctioneer

[or], apprentice auctioneer, auction company, trading assistant

or trading assistant company, or for an auctioneer or auction

company to conduct a sale at auction.

Section 15.  List of licensees and registrants.

The board shall maintain a current list of [any person

licensed by or registered with the board] licensees and

registrants under this act. The list shall be posted on the

department's Internet website and shall be subject to the act of

February 14, 2008 (P.L.6, No.3), known as the Right-to-Know Law.

Section 16.  Records of sales.

(a)  General rule.--Every [auctioneer or trading assistant,

whether acting in his own behalf or as the officer, agent or

representative of another, after the receipt or acceptance by

him of] licensee and registrant under this act who receives or

accepts any property for sale at auction or sale through an

[online] Internet [bidding] competitive consignment sale 

platform[,] shall maintain a written record which shall contain

the following information, provided that if the transaction is

being conducted by an auction company or a trading assistant

company, the records shall be maintained by the auction company

or trading assistant company:

(1)  The name and address of the [person who employed him

to conduct the transaction and of the] owner[, the owner's

authorized agent or consignor] of the property to be sold or

the owner's authorized agent or representative.

(2)  A copy of the written contract authorizing the

transaction containing the terms and conditions of the

transaction or a copy of the receiving invoice.

(3)  A written record of the transaction.

(b)  Inspection of records.--The records referred to in

subsection (a) shall be open at all reasonable times for

inspection by the board or any person who is authorized in

writing for that purpose by the board and who exhibits the

written authorization to the [auctioneer or trading assistant]

licensee or registrant before making an inspection.

(c)  Retention of records.--The written records shall be kept

on file in the office of the [auctioneer or trading assistant]

licensee or registrant for a period of [at least] not less than 

two years and, if the [auctioneer or trading assistant] licensee

or registrant is notified of a complaint against [him] the

licensee or registrant, the records shall be maintained [by the

auctioneer or trading assistant] until the complaint is finally

resolved.

(d)  Receipts.--Every [auctioneer or trading assistant]

licensee or registrant must provide a written receipt for all

transactions[. A] conducted by the licensee or registrant, which 

receipt may be provided electronically. [Receipts] Copies of

receipts must be retained for [at least] not less than two

years.

Section 17.  Contracts for conduct of transaction.

[(a)  General rule.--]Prior to conducting a transaction, [an

auctioneer or trading assistant] a licensee or registrant shall

enter into a written contract, in duplicate, with the owner or

consignor of the property to be sold, containing the terms and

conditions upon which the licensee or registrant agrees to

conduct the sale. Each contract shall include the license or

registration number of the licensee or registrant conducting the

transaction. The contract may be entered into electronically.

The contracts shall be kept on file in the office of the

[auctioneer or trading assistant and shall be open to inspection

as provided in this act. It is unlawful for a person to

advertise an auction or sale at auction or a sale through an

online Internet bidding platform without including in the

advertisement or notice of sale the name and license number of

the auctioneer, auction house or auction company or the

registration number of the trading assistant conducting the

transaction] licensee or registrant and shall be open to

inspection as provided in this act.

[(b)  Penalty.--A person who violates subsection (a) commits

a summary offense and shall, upon conviction, be sentenced to

pay a fine not less than $50.]

Section 13.  Sections 18 and 20 of the act are amended to

read:

Section 18.  Display of licenses and registration certificates.

(a)  General rule.--Every [individual, partnership,

association or corporation licensed as an auctioneer] licensee

and registrant under this act shall prominently display the

[license] certificate [in their] of licensure or registration at

the licensee's or registrant's office, and the current [renewal]

wallet card or any facsimile thereof issued to the licensee or

registrant shall be shown on demand of any person at all

auctions or sales at auction conducted by any licensee or in

connection with any transaction conducted by any registrant.

(b)  Apprentice auctioneers.--All auctioneers shall

prominently display in their office the license certificate of

any apprentice auctioneer employed by them and the current

renewal card or any facsimile thereof of any apprentice

auctioneer employed by them shall be available on demand at any

sale in which an apprentice is employed. A license issued to an

apprentice auctioneer shall designate his sponsor by name.

Prompt notice in writing within ten days shall be given to the

board by the apprentice auctioneer of any change of sponsor and

of the name of the new sponsor into whose service the apprentice

auctioneer is about to enter or has entered. A new license shall

be issued without charge by the board to the apprentice

auctioneer for the unexpired term of the original license. The

new sponsor shall be a qualified [auctioneer] sponsor. The

change of sponsor or employment by any licensed apprentice

auctioneer without notice to the board shall automatically

cancel the license issued to him. It is the duty of the sponsor

named in the license to notify the board within ten days of any

change in status of an apprentice licensed under him. It is

unlawful for an apprentice auctioneer to pay compensation to an

auctioneer for the sole purpose of listing the apprentice as an

employee.

[(c)  Suspension or revocation of license for violation.--The

violation of this section by any licensee is sufficient cause

for the suspension or revocation of his license at the

discretion of the board after a hearing in accordance with this

act.]

Section 20.  Investigations and enforcement actions.

(a)  General rule.--The board may, upon its own motion, and

shall, promptly upon the verified complaint in writing of any

person setting forth specifically the wrongful act or acts

complained of, investigate any action or business transaction of

any person licensed or registered by the board and may

temporarily suspend or permanently revoke licenses or

registrations issued by the board or impose a civil penalty not

exceeding $1,000 at any time when, after due proceedings

provided in this act, it finds the licensee or registrant to

have been guilty in the performance or attempt to perform any of

the acts prohibited to others than licensees or registrants 

under this act, as follows:

(1)  Knowingly making any substantial misrepresentation.

(2)  Knowingly making any false promise of a character

likely to influence, persuade or induce.

(3)  A continued or flagrant course of misrepresentation

or making false promises through agents or apprentice

auctioneers.

(4)  Within five years prior to the issuance of the

license then in force, conviction in a court of competent

jurisdiction in this or any other state or in Federal court

of forgery, embezzlement, obtaining money under false

pretenses, extortion, conspiracy to defraud or other like

offense or offenses.

(5)  Any failure to account for or to pay over moneys

belonging to others which have come into his or its

possession arising out of a sales transaction within a

reasonable time.

(6)  Any misleading or untruthful advertising.

(7)  Any act or conduct in connection with a sales

transaction which demonstrates incompetency, bad faith or

dishonesty.

(8)  Knowingly using false bidders, cappers or puffers.

(9)  Violating any of the provisions of this act.

(10)  Violating any regulation of the board.

(11)  Having his license to engage in the auction

profession revoked or suspended or having other disciplinary

action taken or his application for licensure refused,

revoked or suspended by the proper licensing authority of

another state.

(12)  [Failing] The failure of a licensee or registrant

who receives moneys on account of others to establish or

maintain an escrow account as required in section 21.

(13)  For any licensed auctioneer or apprentice

auctioneer to bid and buy for himself at any auction he is

conducting.

(14)  For any [licensed auctioneer or apprentice

auctioneer] licensee or registrant to pay any compensation in

money or other valuable thing to any person other than a

[licensed auctioneer or apprentice auctioneer] licensee or

registrant for the rendering of any service or the doing of

any of the acts by this act forbidden to be rendered or

performed by other than licensees.

(15)  For a licensee or registrant to advertise an

auction or sale at auction or a sale through an Internet

competitive consignment sale platform without including in

the advertisement or notice of sale the name and the license

or registration number of the licensee or registrant

conducting the transaction.

(b)  Notice of charges.--Before refusing, suspending or

revoking any license or registration, the board shall, in

writing, notify the applicant [or], licensee or registrant of

the charges or allegations against him[, accompanying the notice

with a copy of the complaint filed, if any], and the board shall

accord the applicant [or], licensee or registrant ample

opportunity to be heard in person or by counsel.

Section 14.  Section 21 of the act, amended October 8, 2008

(P.L.1080, No.89), is amended to read:

Section 21.  Escrow account.

Every [auctioneer] licensee and registrant shall

[immediately] promptly deposit moneys[,] received from the sale

of property[,] belonging to [others] the seller or consignor in

a separate custodial or trust fund account maintained by the

[auctioneer or trading assistant] licensee or registrant until

the transaction involved is terminated, at which time the

[auctioneer or trading assistant] licensee or registrant shall

account for the full amount received. Such moneys received by an

auctioneer, apprentice auctioneer or trading assistant working

for an auction company or trading assistant company shall be

promptly turned over to such company for deposit and accounting.

Section 15.  Sections 22 and 23 of the act are amended to

read:

Section 22.  Hearing on charges.

(a)  General rule.--If the applicant [or], licensee or

registrant desires, the board shall grant a hearing upon the

charges. The said hearings may be held by the board or any

member thereof or by any other person duly authorized by the

board for such purpose in any particular case.

(b)  Report of hearing officer.--If the hearing is held by a

member of the board or by a person authorized by the board, a

written report of the hearing shall be made to the board.

(c)  Action on report of hearing officer.--The board may

adopt the findings in the report or may, with or without

additional testimony, either return the report for any further

consideration the board deems necessary or make additional or

other findings of fact on the basis of all the legally probative

evidence in the record and enter its findings of fact and

conclusions of law and order in accordance with the requirements

for the issuance of an adjudication under [Title 2 of the

Pennsylvania Consolidated Statutes] 2 Pa.C.S. (relating to

administrative law and procedure).

Section 23.  Administration and enforcement.

(a)  Administration and enforcement.--The board shall

administer and enforce this act.

(b)  Issuance and supervision of licenses.--It is the duty of

the board, on payment of the required fee and on compliance with

the requirements of this act, to issue a license as an

auctioneer, apprentice auctioneer or auction company and to

issue registrations to trading assistants and to trading

assistant companies. The board shall supervise and control all

licenses and registrations issued under this act.

Section 16.  Sections 26(c), 27, 28 and 29 of the act,

amended October 8, 2008 (P.L.1080, No.89), are amended to read: 

Section 26.  Revocation or suspension of license or

registration.

* * *

(c)  Revocation of license or registration of legally

recognized entity for violation by member or officer.--In the

event of the revocation or suspension of the license or

registration issued to any member of a partnership or to any

officer of an association [or], corporation, limited liability

company or other entity, the license or registration issued to

the [partnership, association or corporation] legally recognized

entity shall be revoked by the board unless, within a time fixed

by the board, the connection of the member of the partnership is

severed and his interest in the partnership and his share in its

activities brought to an end or the officer of the association

[or], corporation, limited liability company or other entity is

discharged and has no further participation in its activities.

Section 27.  Issuance of new license or registration pending

investigation and decision.

Pending an investigation or proceeding before the board

affecting any licensee or registrant and pending final decision

upon any appeal taken by a licensee or registrant from the

ruling of the board, no new registration may be issued or

license may be issued to a licensee or to a partnership of which

he is a member or employee or to an association [or], 

corporation, limited liability company or other entity of which

he is an officer or employee except for the period of the

investigation or proceeding and subject to the action of the

board.

Section 28.  Issuance of new license or registration after

revocation.

(a)  General rule.--After the revocation of any license or

registration, no new license or registration may be issued to

the same licensee or registrant within a period of at least [one

year] five years from the date of the revocation nor, except in

the sole discretion of the board and subject to the conditions

of this act, at any time thereafter.

(b)  Criminal conduct.--No license or registration shall be

issued by the board to any person known by it to have been,

within five years, convicted of forgery, embezzlement, obtaining

money under false pretenses, extortion, criminal conspiracy to

defraud or other like offense, or to any copartnership of which

any person is a member or to any association [or], corporation,

limited liability company or other entity of which any person is

an officer or employee or in which as a stockholder any person

has or exercises a controlling interest either directly or

indirectly.

Section 29.  Penalties.

(a)  Criminal penalties.--Any person who engages in or

carries on the profession or acts in the capacity of an

auctioneer, apprentice auctioneer, [auction house,] auction

company, trading assistant or trading assistant company in this

Commonwealth without a current license or registration or who

employs any [person] individual without a current license or

registration as an auctioneer, apprentice auctioneer or trading

assistant:

(1)  For a first offense, commits a summary offense and

shall, upon conviction, be sentenced to pay a fine not

exceeding $500 or to imprisonment not exceeding three months,

or both.

(2)  For a second or subsequent offense, commits a

misdemeanor of the third degree and shall, upon conviction,

be sentenced to pay a fine of not less than $2,000 but not

more than $5,000 or to imprisonment for not less than one

year but not more than two years, or both.

(b)  Civil penalty.--In addition to any other civil remedy or

criminal penalty provided for in this act, the board, by a vote

of the majority of the maximum number of the authorized

membership of the board as provided by law or by a vote of the

majority of the duly qualified and confirmed membership or a

minimum of four members, whichever is greater, may levy a civil

penalty of up to [$1,000] $10,000 on any person who engages in

the business or practice of auctioneering, or acts as a trading

assistant or trading assistant company, without being properly

licensed or registered to do so under this act. The board shall

levy this penalty only after affording the accused party the

opportunity for a hearing, as provided in [Title 2 of the

Pennsylvania Consolidated Statutes] 2 Pa.C.S. (relating to

administrative law and procedure).

(c)  Failure to register.--Any individual who fails to

register under section [10.1] 5.1 may be subject to a penalty of

up to $500 levied by the commissioner. The individual may