1Amending the act of December 22, 1983 (P.L.327, No.85),
2entitled, as amended, "An act imposing regulations and
3licensing requirements on auctioneers, apprentice
4auctioneers, auction houses, auction companies and trading
5assistants; imposing powers and duties on the State Board of
6Auctioneer Examiners; and making repeals," further providing
7for the title of the act, for definitions, for auctioneer and
8apprentice auctioneer licenses, for status of existing
9licensees and for applications for initial and renewal
10licenses; providing for registration of trading assistants
11and trading assistant companies; further providing for
12special licensees to furnish bond and for authority to
13transact business not transferable; repealing provisions
14relating to auction house license, auction company license,
15trading assistant registration and nonresident licensees;
16further providing for reciprocity with other states;
17repealing provisions relating to licensee and registrant to
18furnish bond; and further providing for no other license or
19registration required, for list of licensees and registrants,
20for records of sales, for contracts for conduct of
21transaction, for display of licenses, for investigations and
22enforcement actions, for escrow account, for hearing on
23charges, for administration and enforcement, for revocation
24or suspension of license or registration, for issuance of new
25license or registration pending investigation and decision,

1for issuance of new license or registration after revocation,
2for penalties and for actions by unlicensed persons
3prohibited.

4The General Assembly of the Commonwealth of Pennsylvania
5hereby enacts as follows:

6Section 1. The title and sections 2 and 3 of the act of
7December 22, 1983 (P.L.327, No.85), known as the Auctioneer
8Licensing and Trading Assistant Registration Act, amended
9October 8, 2008 (P.L.1080, No.89), are amended to read:

10AN ACT

11Imposing regulations and licensing requirements on auctioneers,
12apprentice auctioneers, auction [houses, auction] companies, 
13trading assistants and trading [assistants] assistant 
14companies; imposing powers and duties on the State Board of
15Auctioneer Examiners; and making repeals.

16Section 2. Definitions.

17The following words and phrases when used in this act shall
18have the meanings given to them in this section unless the
19context clearly indicates otherwise:

20"Apprentice auctioneer." [A person] An individual who is
21licensed under this act as an apprentice auctioneer.

22"Auction" or "sale at auction."

23(1) The offer [to sell] for sale of property [by an
24auctioneer or apprentice auctioneer to the members of an
25audience congregated for the purpose of making bids for the
26purchase of the property] through the solicitation of bids 
27from one or more potential buyers in an effort [by the
28auctioneer or apprentice auctioneer] to advance the amount of
29the bids to obtain the highest or most favorable offer, 
30regardless of the venue or format utilized.

31(2) The term "auction" or "sale at auction" includes:

1(i) live auctions;

2(ii) online auctions;

3(iii) real-time auctions;

4(iv) extended auctions; and

5(v) any similar such events as may be devised with
6the development of technology, or otherwise involving the
7sale of property and the advancement of the price through
8a bidding process.

9(3) The term "auction" or "sale at auction" excludes any
10sale conducted through an [online] Internet [bidding]
11competitive consignment sale platform.

12"Auction company." [A company which, as part of its
13business, arranges, manages, sponsors, advertises or carries out
14auctions.] A legally recognized entity which sells or attempts 
15to sell property at auction or performs, or offers to perform, 
16any of the functions or activities requiring licensure as an 
17auction company under section 3(a)(1). The term includes any 
18legally recognized entity which holds itself out as engaged in 
19the business of selling property at auction.

20"Auction house." An established place of business,
21including, but not limited to, an auction barn, a sale barn and
22a sale pavilion, where two or more auctions are held within any
2312-month period and where representations are regularly made
24that property is sold at auction. The term does not include
25premises where isolated or periodic sales are conducted by an
26auctioneer or auctioneer apprentice and which are used primarily
27for purposes other than auctions or sales at auction.

28"Auctioneer." [A person] An individual who sells or offers
29or attempts to sell property at auction. The term includes [any
30person who holds] an individual who:

1(1) Engages in or offers the calling for and recognition
2of bids at auction.

3(2) Engages in or offers any of the activities of an
4auction company.

5(3) Performs, or offers to perform, any of the functions
6or activities requiring licensure under section 3(a)(1).

7(4) Holds himself out as engaged in the business of
8selling property at auction.

9"Auctioneer-of-record." The licensed auctioneer designated
10by an auction company as its auctioneer-of-record. The
11auctioneer-of-record is principally responsible for the conduct
12of the auctions of the auction company in accordance with this
13act.

14"Board." The State Board of Auctioneer Examiners [in the
15Department of State].

16"Commissioner." The Commissioner of Professional and
17Occupational Affairs in the Department of State.

18"Department." The Department of State.

19"Extended auction." An auction or sale at auction conducted
20in whole or in part online at which bids are received over an
21extended period of time identified by a starting time and ending
22time that may encompass multiple minutes, hours, days or other
23periods.

24"Internet competitive consignment sale platform." Hardware
25or software architecture that provides or enables computer
26access by multiple users to an interactive computer server for
27the purpose of allowing users to offer property for sale and
28that does not examine, set the price or prepare the description
29of the property to be offered.

30"Legally recognized entity." A partnership, association,

1corporation, limited liability company or other entity
2recognized under the laws of this Commonwealth or any other
3state.

4"Licensee." [A person licensed under this act including an
5auctioneer, apprentice auctioneer, holder of a special license
6and, in the case of an auction house or company, the person
7required to obtain the license.] An individual licensed under 
8this act as an auctioneer, apprentice auctioneer or holder of a 
9special license and a legally recognized entity licensed under 
10this act as an auction company.

11"Live auction." An auction or sale at auction at which one
12or more members of an audience are present in person, are
13communicating telephonically or by other digital or electronic
14means or are participating by absentee bid.

15"Online auction." An auction or sale at auction conducted
16over the Internet or similar interactive communication media.

17["Online Internet bidding platform." Hardware or software
18architecture that provides or enables computer access by
19multiple users to an interactive computer server for the purpose
20of allowing users to offer property for sale and that does not
21examine, set the price or prepare the description of the
22property to be offered.]

23"On-site auction." An auction or sale at auction conducted
24at the seller's residential or business location where the
25property to be sold is located.

26"Person." An individual[, partnership, association,
27corporation, limited liability company or other] or a legally 
28recognized entity.

29"Property." Real and personal property, including both 
30tangible and intangible personal property. The term includes,

1but is not limited to, domestic animals and farm products.

2"Qualified [auctioneer] sponsor." A currently licensed
3auctioneer residing in this Commonwealth.

4"Real-time auction." An auction or sale at auction at which
5bids are solicited and received contemporaneously, in real time.

6"Registrant." A person registered under this act as a
7trading assistant or a trading assistant company.

8"Seller." The owner of property, or the legal representative
9or agent of the owner of property, who consigns or otherwise
10agrees to have the property sold at auction or sale by auction
11or by way of an Internet competitive consignment sale platform.

12"Special licensee." The holder of a special license issued
13pursuant to section 3.

14"Temporary venue." A venue, including a rented hall, used
15primarily for other purposes, at which an auction or sale at
16auction is held by an auction company or an auctioneer,
17regardless of the frequency of the auctions or sales at auction.

18"Trading assistant." An individual who, for a commission or
19fee, conducts or intends to conduct a business within this
20Commonwealth of accepting personal property [to sell] on 
21consignment from the owner or seller of the personal property to 
22be sold on behalf of [another] the owner or seller through an
23[online] Internet [bidding] competitive consignment sale
24platform, or who performs, or offers to perform, any of the 
25functions or activities requiring registration under section 
265.1(a).

27"Trading assistant company." A legally recognized entity 
28that for a commission or fee, conducts or intends to conduct a 
29business within this Commonwealth of accepting personal property 
30on consignment from the owner or seller of such personal 

1property, to be sold on behalf of the owner or seller through an 
2Internet competitive consignment sale platform, or who performs, 
3or offers to perform, any of the functions or activities 
4requiring registration under section 5.1(a).

5Section 3. Auctioneer [and], apprentice auctioneer, auctioneer 
6company and special licenses.

7(a) Requirement for license.--[Notwithstanding section 10.1,
8it]

9(1) It is unlawful for any person to engage in or carry
10on the business or profession of an auctioneer or an auction 
11company, to conduct [a] an auction or sale at auction, to
12hold himself out as an auctioneer or as an apprentice
13auctioneer, to hold itself out as an auction company or to
14offer to conduct auctions or sales at auction in this
15Commonwealth without first obtaining from the board a license
16as an auctioneer [or apprentice auctioneer. Any member,
17officer or employee of a partnership, association or
18corporation who attempts to sell at auction or who is
19actively engaged in the auction profession must have a 
20license as an auctioneer or apprentice auctioneer.], 
21apprentice auctioneer, auction company or special license.

22(2) (i) Without limiting the other provisions of this
23subsection, and regardless of whether the computer system
24or server utilized in connection with an online auction
25is physically located within this Commonwealth or outside
26this Commonwealth, a license under this act shall be
27required for any person offering to conduct or agreeing
28to conduct an online auction, or conducting an online
29auction, if:

30(A) the seller or owner is situate in this

1Commonwealth at the time the offer is made, the
2agreement is made or the online auction is held;

3(B) the online auction involves the sale of real
4property situate in this Commonwealth; or

5(C) the online auction involves the sale of
6personal property situate in this Commonwealth at the
7time the offer is made, the agreement is made or the
8online auction is held.

9(ii) Under this section licensure is not required
10under circumstances in which the owner or seller
11initiates contact with an auctioneer, auction company or
12other provider of auction services located outside of
13this Commonwealth to sell personal property at an online
14auction outside of this Commonwealth.

15(3) Any owner, member, officer or employee of an auction
16company who engages in or offers the calling for and
17recognition of bids at an auction must have a license as an
18auctioneer or apprentice auctioneer.

19(4) Licensees under this act shall be authorized to
20conduct auctions at any venue within this Commonwealth,
21including on-site auctions and auctions held at auction
22houses and temporary venues, and in any format, including
23live auctions and online auctions, whether real-time or
24extended, together with any and all related activities.
25Events constituting auctions and auction-related activities
26shall not be limited by technology existing as of the
27effective date of this paragraph.

28[(b) Issuance and supervision of licenses.--It is the duty
29of the board, upon payment of the license fees required and upon
30compliance with the requirements of this act, to issue a license

1as an auctioneer or apprentice auctioneer to individuals or as
2an auctioneer to partnerships, associations and corporations who
3qualify under and comply with this act. The board shall
4supervise and control all licenses issued under this act.]

5(c) Qualifications in general for license.--[Licenses]
6Auctioneer, apprentice auctioneer and special auctioneer 
7licenses shall be granted only to [persons] individuals who have
8a good reputation for honesty, truthfulness, integrity and
9competence to transact the business of an auctioneer or
10apprentice auctioneer in a manner as to safeguard the interest
11of the public and only after satisfactory proof of these
12qualifications has been presented to the board as required by
13this act and regulation.

14(d) [Qualifications for apprentice] Apprentice auctioneer
15license.--To qualify for an apprentice auctioneer license, [a
16person] an individual must be sponsored and employed for
17compensation by a qualified [auctioneer] sponsor who employs no
18more than one other apprentice auctioneer.

19(e) [Qualifications for auctioneer] Auctioneer license.--To
20qualify for an auctioneer license, [a person] an individual must
21have passed the prescribed examination after having:

22(1) served an apprenticeship as a licensed apprentice
23auctioneer for a period of not less than two years in the
24employ of a qualified [auctioneer] sponsor and participated
25for compensation in no less than 30 auctions; [or<-]

26(2) successfully completed a prescribed course of study
27in auctioneering of at least 20 credit hours at a school
28approved by the board[.<-];

29(3) been licensed in good standing by another state to
30engage in auctioneering for at least two years; or

1(4) been established in the business of auctioneering
2for at least two years in a state that does not require a
3license. The board shall review applications under this
4paragraph to determine the qualifications of the applicant.

5(e.1) Auction company license.--

6(1) Every legally recognized entity shall, before
7operating as an auction company, obtain an auction company
8license issued by the board.

9(2) Every auction company shall designate an auctioneer-
10of-record. Each auction company licensed under this act shall
11designate an individual licensed as an auctioneer under this
12act to serve as the auction company's auctioneer-of-record.
13The designation of the auctioneer-of-record shall be made in
14the initial application for licensure as an auction company
15and in each application for renewal of an auction company
16license. The auctioneer-of-record may be an employee,
17independent contractor or other agent of the auction company,
18and there shall be no requirement that the auctioneer-of-
19record have an ownership interest in, or be an officer of,
20the auction company. The auctioneer-of-record is principally
21responsible for the conduct of the auctions of the auction
22company in accordance with this act. However, nothing in this
23act shall limit or restrict the ability of an auction company
24to utilize the services of one or more auctioneers in
25addition to the auctioneer identified as auctioneer of
26record, and it shall not be necessary for the auctioneer-of-
27record to be present at every auction conducted by the
28auction company, provided that a licensed auctioneer is
29present to conduct the activities required to be conducted by
30a licensed auctioneer under this act and to supervise any

1apprentice auctioneer. An auction company license becomes
2invalid if the license of the auctioneer-of-record is not
3renewed or is suspended or revoked or if the auctioneer-of-
4record becomes deceased or otherwise ceases to be the auction
5company's auctioneer-of-record without substitution by a
6successor auctioneer-of-record.

7(3) Within 15 calendar days after an auction company's
8auctioneer-of-record ceases to serve as auctioneer-of-record,
9both the auction company and the auctioneer-of-record shall
10have the obligation to notify the board in writing of the
11termination of such status.

12(f) [Qualifications for license reissued] Reissuance of 
13license after long inactivity.--Any [person] individual to whom
14an auctioneer or apprentice auctioneer license has been issued
15and who has been inactive as an auctioneer or apprentice
16auctioneer for a period of seven years without renewing the
17license issued to him shall be required to submit to and pass an
18examination approved by the board prior to having a license
19reissued to him.

20[(g) Designation of auctioneer-of-record.--If the applicant
21for a license is a partnership, association or corporation, then
22a member of the partnership or association or an officer of the
23corporation, who is licensed in this Commonwealth as an
24auctioneer, must be designated as the auctioneer-of-record. The
25auctioneer-of-record is principally responsible for the conduct
26of the auctions of the partnership, association or corporation
27in accordance with this act. A partnership, association or
28corporation auctioneer license becomes invalid if the license of
29the auctioneer-of-record is not renewed or is suspended or
30revoked.]

1(g.1) Special license to conduct auction.--An auctioneer or
2auction company authorized to engage in auctioneering in another
3state shall, on application and payment of the license fee, be
4issued a special license for each specifically identified
5auction conducted in this Commonwealth. Applications must be
6made 20 days in advance of the auction or sale at auction and
7must include the name and address of the consignor or owner of
8all items to be sold. All applications are subject to approval
9by the board and shall include proof of authority to engage in
10auctioneering in the other state.

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

12The requirement to obtain a license under this act does not
13apply to sales at auction in the following circumstances:

14(1) To a specified single sale per year conducted by the
15owner of property if the owner is not engaged in the business
16of selling the property and if the property is owned by the
17person in an individual capacity.

18(2) To a sale conducted by or on behalf of a charitable
19organization if the person conducting the sale receives no
20compensation therefor.

21(3) To a sale conducted by or on behalf of a person
22appointed by judicial order or decree.

23(4) To a sale conducted in the settlement of any
24decedent's estate.

25(5) To a sale conducted by or under the direction of any
26public authority.

27(6) To any sale required by law to be at auction.

28(i) Special license to conduct auction.--An auctioneer
29authorized to engage in auctioneering in another state shall,
30upon application and payment of the license fee, be issued a

1special license for each auction conducted by him. Applications
2must be made 20 days in advance of the sale and must include the
3name and address of the consignor or owner of all items to be
4sold. All applications are subject to approval by the board and
5shall include proof of authority to engage in auctioneering in
6the other state.]

7Section 2. The act is amended by adding a section to read:

8Section 3.1. Sales exempt from license requirements.

9The requirement to obtain a license under this act does not
10apply to sales at auction in the following circumstances:

11(1) To a specified single sale per year conducted by the
12owner of property if the owner is not engaged in the business
13of selling the property and if the property is owned by the
14person in an individual capacity.

15(2) To a sale conducted by or on behalf of a charitable
16organization if the person conducting the sale receives no
17compensation therefor.

18(3) To a sale conducted by or on behalf of a person
19appointed by judicial order or decree.

20(4) To a sale conducted in the settlement of any
21decedent's estate conducted by the executor or administrator
22of the estate.

23(5) To a sale conducted by or under the direction of any
24public authority.

25Section 3. Section 4 of the act is amended by adding a
26subsection to read:

27Section 4. Status of existing licensees.

28* * *

29(c) Licensed auction houses.--An auction house license 
30issued under and pursuant to this act and existing on the 

1effective date of this paragraph shall remain in full force and 
2effect through February 28, <-2014 2015, at which time the license 
3shall expire and shall not be subject to renewal. Thereafter, 
4auction house licenses will no longer be issued or renewed in 
5this Commonwealth, and any holder of an auction house license as 
6of February 28, <-2014 2015, who is not also the holder of an 
7auction company license shall be required to obtain either an 
8auction company license or an auctioneer's license in order to 
9continue in the business and profession of auctioneering in this 
10Commonwealth.

11Section 4. Section 5 of the act, amended October 8, 2008
12(P.L.1080, No.89), is amended to read:

13Section 5. Applications for initial and renewal licenses.

14(a) Application for auctioneer license.--Applications for
15license as an auctioneer shall be made to the board in writing
16[upon] on forms provided by the board which shall contain such
17information as [to the individual or, if the applicant is a
18partnership, association or corporation, as to its members or
19officers, as] the board requires. [If the applicant is an
20individual, the application shall be signed by that individual.
21If the applicant is a partnership or an association, the
22application shall be signed by a member. If the applicant is a
23corporation, the application shall be signed by an officer.] An
24application by a licensed apprentice auctioneer seeking to
25qualify on the basis of an apprenticeship shall contain or be
26accompanied by satisfactory evidence that the applicant was in
27the employ of a <-qualified sponsor for at least two years and
28participated for compensation in not less than 30 auctions on
29the dates and at the locations provided by the applicant. Upon
30the filing of an application, the board shall investigate the

1allegations contained in the application and if, upon
2investigation, it finds the allegations untrue, it may refuse to
3examine or license the applicant or may revoke any license
4issued to the applicant on the basis of materially untrue
5allegations contained in the application for a license. The
6board shall set forth in writing its findings and reasons for
7its refusal or revocation and furnish a copy to the applicant.

8(b) Application for apprentice auctioneer license.--
9Applications for license as an apprentice auctioneer shall be
10made to the board in writing [upon] on forms provided by the
11board which shall contain such information as to the applicant
12as the board requires. For license renewals, the licensee shall
13set forth the period of time, if any, during which [he] the 
14apprentice auctioneer was engaged in the auction profession,
15stating the name of [his present] the apprentice auctioneer's 
16current qualified sponsor and any former <-qualified sponsor for
17the period of five years immediately preceding the date of the
18renewal. If it becomes necessary to change <-qualified sponsors,
19the apprentice auctioneer must notify the board by letter upon
20the termination of the sponsorship and submit a transfer form,
21provided by the board, when a new <-qualified sponsor is obtained.
22An apprentice auctioneer license is invalid when there is no
23sponsoring auctioneer and credit does not accrue during that
24time. A license will be reissued when the apprentice auctioneer
25submits a transfer form which informs the board that [he] the 
26apprentice auctioneer has secured a new <-qualified sponsor.

27(b.1) Application for auction company license.--Every
28legally recognized entity seeking an auction company license
29shall file with the board an application in writing on forms
30provided by the board which shall contain such information as to

1the applicant and as to the members or officers of the
2applicant, as the board shall require. Each application shall
3identify an auctioneer-of-record. On the filing of an
4application, the board shall investigate the allegations
5contained in the application and if, on investigation, it finds
6the allegations untrue, it may refuse to license the applicant
7to operate an auction company.

8(c) [Examinations] Auctioneer examinations.--The board shall
9contract with a professional testing organization for the
10preparation and administration of the auctioneer examination, in
11accordance with section 812.1(a) of the act of April 9, 1929
12(P.L.177, No.175), known as The Administrative Code of 1929. [No
13person] Except as otherwise provided under this act or by 
14regulation, no individual may be issued an auctioneer license
15unless the [person] individual passes an examination approved by
16the board. The board shall hold examinations at locations, times
17and dates prescribed by regulation of the board.

18(d) Issuance of new license after revocation.--In the event
19the license of an auctioneer or an apprentice auctioneer is
20revoked by the board subsequent to the effective date of this
21act, no new license may be issued to that person until he
22complies with all the provisions of this act.

23(e) Expiration and renewal of license.--All licenses issued
24by the board shall be for a maximum term of two years and shall
25expire on the last day of February of each odd year. It is the
26duty of all persons licensed to practice as an auctioneer [or],
27apprentice auctioneer [or to operate as an auction house] or
28auction company to renew the license biennially with the board
29and to pay the license fee for each biennial license renewal.
30Applications for renewals of licenses issued under this act

1shall be made within 60 days prior to the expiration of the
2license [upon] on forms and in the manner provided by the board.

3(f) Internet sales.--An applicant or licensee renewing a
4license under this section must indicate to the board whether or
5not sales will be conducted via an [online] Internet [bidding]
6competitive consignment sale platform.

7Section 5. The act is amended by adding a section to read:

8Section 5.1. Registration of trading assistants and trading
9assistant companies.

10(a) Requirement for registration.---It shall be unlawful for
11an individual to act as a trading assistant, or for any legally
12recognized entity to act as a trading assistant company, for a
13sale, or offer to sell, conducted on an Internet competitive
14consignment sale platform without either first registering with,
15or obtaining licensure from, the board. A legally recognized
16entity conducting business as a trading assistant must register
17as a trading assistant company even though a member or officer
18is registered as a trading assistant. Registration is required
19on a biennial basis, and renewal shall be due on the last day of
20February of each odd year.

21(b) Application.--Application for registration under this
22section shall include the following:

23(1) The name of the applicant, the business and the
24physical location where the business will be conducted.

25(2) The date the applicant will begin accepting goods
26for sale through an Internet competitive consignment sale
27platform.

28(3) The applicant's Pennsylvania tax identification
29number.

30(4) The applicant's e-mail address.

1(c) Fee.--A registration fee of $100 shall be included with
2each application for registration or renewal. The fee may be
3established by the board by regulation.

4(d) Renewal.--It is the duty of all registrants to renew the
5registration biennially with the board and to pay the fee for
6each biennial registration.

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

8Section 7. [Special licensees] Licensees and registrants to
9furnish bond.

10(a) General rule.--[A] No license, including a special 
11license, or registration shall be granted or issued to any 
12person under this act until the applicant has filed with the 
13board an approved bond payable to the Commonwealth in the [penal
14sum] amount of $5,000 [shall accompany every application for a
15special license]. The bond shall be executed by a surety company
16authorized by the laws of this Commonwealth to transact business
17in this Commonwealth<-, and no licensee or registrant shall engage 
18in the businesses regulated under this act without an active 
19bond in force. The bond shall be for the use of the Commonwealth
20and for any person or persons who may have a cause of action
21against a licensee [arising] or registrant under this act.

22(b) Conditions of bond.--The [conditions] condition of the
23bond shall be that the licensee, including a special licensee or 
24registrant, will comply with and abide by the provisions of this
25act and will pay to the Commonwealth, the board or any person or
26persons any and all money that may come due to the Commonwealth,
27the board or the person or persons from a licensee or registrant
28under and by virtue of this act.

29(c) Action on bond.--If any person is aggrieved by the
30misconduct of any licensee, including a special licensee or 

1registrant and recovers judgment against the licensee or 
2registrant therefor, the person may on any execution issued
3under the judgment maintain an action upon the bond of the
4licensee or registrant in any court having jurisdiction of the
5amount claimed.

6Section 8. Authority to transact business not transferable.

7The authority to transact business as an auctioneer,
8apprentice auctioneer[, auction house] or auction company
9licensed under [a license issued by the board] this act, or as a 
10trading assistant or trading assistant company registered under 
11this act, is restricted to the person named in the license or 
12registration and may not be transferred to the benefit of any
13other person. [A partnership, association or corporation
14licensed under this act is only permitted to transact auction
15business through a member, officer or employee who is licensed
16under this act.]

17Section 7. Sections 9 and 10 of the act are repealed:
18[Section 9. Auction house license.

19(a) Requirement for license.--Every person, except an
20individual who is licensed as an auctioneer, shall, before
21operating an auction house, obtain a license from the board to
22operate the auction house. Every partnership, association or
23corporation must obtain a license even though a member or
24officer is licensed as an auctioneer.

25(b) Application for license.--Every person seeking a license
26to operate an auction house shall file with the board an
27application in writing upon forms provided by the board which
28shall contain such information as to the individual or, if the
29applicant is a partnership, association or corporation, as to
30the members or officers, as the board requires. A person must

1file a separate application for each auction house to be
2operated. The application shall be accompanied by the license
3fee and surety bond required by this act.

4(c) Investigation and refusal of license.--Upon the filing
5of an application, the board shall investigate the allegations
6contained in the application and, if, upon investigation, it
7finds the allegations untrue, it may refuse to license the
8applicant to operate an auction house.

9(d) Information from auctioneer.--A licensed auctioneer who
10also operates an auction house shall notify the board in writing
11of the address of each auction house operated by him and of the
12trade or business name by which each auction house is known. The
13auctioneer shall notify the board in writing if the operation of
14the auction house is sold or discontinued or if the name or
15location of the auction house is changed.

16Section 10. Auction company license.

17(a) Requirement for license.--Every person, except an
18individual who is licensed as an auctioneer or an individual who
19is licensed to operate an auction house, shall, before operating
20an auction company, obtain a license from the board to operate
21the auction company. Every partnership, association or
22corporation must obtain a license even though a member or
23officer is licensed as an auctioneer.

24(b) Application for license.--Every person seeking a license
25to operate an auction company shall file with the board an
26application in writing upon forms provided by the board which
27shall contain such information as to the individual or, if the
28applicant is a partnership, association or corporation, as to
29the members or officers, as the board requires. Each application
30shall be accompanied by the license fee and surety bond required

1by this act.

2(c) Investigation and refusal of license.--Upon the filing
3of an application, the board shall investigate the allegations
4contained in the application and, if, upon investigation, it
5finds the allegations untrue, it may refuse to license the
6applicant to operate an auction company.

7(d) Information from auctioneer or auction house.--A
8licensed auctioneer or an individual licensed to operate an
9auction house, who also operates an auction company, shall
10notify the board in writing that he is operating an auction
11company and shall specify the trade or business name and the
12address of the principal place of business of each auction
13company which he operates. The individual who is licensed as an
14auctioneer or to operate as an auction house shall notify the
15board in writing if the operation of the auction company is sold
16or discontinued or if the name or location of the auction
17company is changed.]

18Section 8. Section 10.1 of the act, added October 8, 2008
19(P.L.1080, No.89), is repealed:

20[Section 10.1. Trading assistant registration.

21(a) Requirement for registration.--It shall be unlawful for
22any individual to act as a trading assistant for a sale
23conducted by competitive bidding without either first
24registering with or obtaining licensure from the board.
25Registration is required on a biennial basis.

26(b) Application.--Application for registration under this
27section shall include the following:

28(1) Name of the applicant, the business and the physical
29location where the business will be conducted.

30(2) Date the applicant will begin accepting goods for

1sale through an online Internet bidding platform.

2(3) Pennsylvania tax identification number.

3(4) E-mail address.

4(c) Fee.--A registration fee of $100 shall be included with
5each application for registration.]

6Section 9. Section 11 of the act is repealed:

7[Section 11. Nonresident licensees.

8(a) General rule.--A nonresident of this Commonwealth may be
9licensed as an auctioneer or apprentice auctioneer or to operate
10an auction house or auction company upon complying with all the
11provisions and conditions of this act required of residents of
12this Commonwealth.

13(b) Waiver of certain requirements.--The board may waive the
14requirement for serving an apprenticeship or completing a course
15of study in auctioneering if the nonresident was:

16(1) licensed by another state for at least two years; or

17(2) established in the business of auctioneering for at
18least two years and, in the case of states that do not
19require a license, the board reviews the application to
20determine the qualifications of the applicant.

21(c) Limitation on type of property sold.--The nonresident
22auctioneer or apprentice auctioneer is only permitted to sell at
23auction in this Commonwealth whatever property the laws of his
24state permit nonresident auctioneers and apprentice auctioneers
25to sell at auction.

26(d) Ineligibility to sponsor apprentices.--A nonresident
27auctioneer is not a qualified auctioneer for the purpose of
28sponsoring or employing an apprentice auctioneer.]

29Section 10. Section 12 of the act is amended to read:

30Section 12. Reciprocity with other states.

1(a) [General rule.--<-[A nonresident of this Commonwealth who
2applies for a license as an auctioneer or apprentice auctioneer
3may be granted a license for which he applies if he is licensed
4as an auctioneer or apprentice auctioneer by the proper
5authority of the state of his domicile,] <-Licensure by 
6reciprocity.--In accordance with regulations promulgated by the 
7board, a <-A person who is licensed in good standing as an 
8auctioneer, apprentice auctioneer or auction company in another 
9state may on application to the board be granted licensure as an 
10auctioneer, apprentice auctioneer or auction company in this 
11Commonwealth upon the payment by the applicant of the proper
12[license] application fee and the filing with the board of a
13properly certified copy of the license issued to the applicant
14by the [state of his domicile, subject to the following
15limitations:

16(1) The auctioneer licensing laws of the nonresident
17state must extend to licensed auctioneers and apprentice
18auctioneers of this Commonwealth the same rights and
19privileges and the same authority to conduct auction sales in
20that state as this act extends to nonresidents of this
21Commonwealth without the necessity of the licensed
22auctioneers and apprentice auctioneers of this Commonwealth
23to obtain additional or further licenses or authority from
24any political subdivision of that state to conduct an auction
25sale.

26(2) The nonresident auctioneer or apprentice auctioneer
27is only permitted to sell at auction in this Commonwealth
28whatever property the laws of his state permit nonresident
29auctioneers and apprentice auctioneers to sell at auction.

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

1application.

2(c) Change of nonresident status.--The movement from another
3state or jurisdiction to domicile in this Commonwealth
4eliminates the possibility of reciprocal licensing set forth in
5this section and the individual must qualify for a license under
6terms of this act which are applicable to residents of this
7Commonwealth.] applicant's current licensing state, provided 
8that:

9(1) the requirements for licensure in the applicant's
10current licensing state are, in the determination of the
11board, commensurate with the requirements for licensure in
12this Commonwealth;

13(2) the licensing laws of the applicant's current
14licensing state extend to licensees of this Commonwealth the
15same reciprocal rights and privileges in that state without
16the necessity of the licensees in this Commonwealth to obtain
17additional or further licenses or authority from any
18political subdivision of that state; and

19(3) the applicant satisfies all other requirements of
20licensees and applicants for licensure in this Commonwealth,
21including the requirement to furnish a bond.

<-22(b) Regulations governing reciprocity.--The board shall
23adopt regulations setting forth the requirements for licensure
24by reciprocity under this act.

<-25(b) Review by board.--Each application for licensure by
26reciprocity shall be reviewed by the board and shall be
27determined by a vote of the board.

28Section 11. Section 13 of the act, amended October 8, 2008
29(P.L.1080, No.89), is repealed:

30[Section 13. Licensee and registrant to furnish bond.

1(a) General rule.--An auctioneer, apprentice auctioneer,
2auction company or auction house license or trading assistant
3registration shall not be granted or issued to any person until
4the applicant has filed with the board an approved bond payable
5to the Commonwealth in the amount of $5,000. The bond shall be
6executed by a surety company authorized by the laws of this
7Commonwealth to transact business in this Commonwealth. The bond
8shall be for the use of the Commonwealth and for any person or
9persons who may have a cause of action against a licensee or
10registrant under this act.

11(b) Conditions of bond.--The condition of the bond shall be
12that the licensee or registrant will comply with and abide by
13the provisions of this act and will pay to the Commonwealth, the
14board or any person or persons any and all money that may come
15due the Commonwealth, the board or the person or persons from a
16licensee or registrant under and by virtue of this act.

17(c) Action on bond.--If any person is aggrieved by the
18misconduct of any licensee or registrant and recovers judgment
19against the licensee or registrant therefor, the person may, on
20any execution issued under the judgment, maintain an action upon
21the bond of the licensee or registrant in any court having
22jurisdiction of the amount claimed.]

23Section 12. Sections 14, 15, 16 and 17 of the act, amended
24October 8, 2008 (P.L.1080, No.89), are amended to read:

25Section 14. No other license or registration required.

26No political subdivision of this Commonwealth shall have the 
27power or authority to levy or collect any license tax or fee 
28which is either a regulatory or a revenue measure upon or from 
29any [auctioneer or apprentice auctioneer or trading assistant 
30licensed or registered] licensee or registrant under this act 

1nor to require any [auctioneer or apprentice auctioneer] 
2licensee or registrant to be licensed by the political 
3subdivision in order to carry on the business of auctioneer 
4[or], apprentice auctioneer, auction company, trading assistant 
5or trading assistant company, or for an auctioneer or auction 
6company to conduct a sale at auction.

7Section 15. List of licensees and registrants.

8The board shall maintain a current list of [any person
9licensed by or registered with the board] licensees and 
10registrants under this act. The list shall be posted on the
11department's Internet website and shall be subject to the act of
12February 14, 2008 (P.L.6, No.3), known as the Right-to-Know Law.

13Section 16. Records of sales.

14(a) General rule.--Every [auctioneer or trading assistant, 
15whether acting in his own behalf or as the officer, agent or 
16representative of another, after the receipt or acceptance by 
17him of] licensee and registrant under this act who receives or 
18accepts any property for sale at auction or sale through an 
19[online] Internet [bidding] competitive consignment sale 
20platform[,] shall maintain a written record which shall contain 
21the following information, provided that if the transaction is 
22being conducted by an auction company or a trading assistant 
23company, the records shall be maintained by the auction company 
24or trading assistant company:

25(1) The name and address of the [person who employed him
26to conduct the transaction and of the] owner[, the owner's
27authorized agent or consignor] of the property to be sold or 
28the owner's authorized agent or representative.

29(2) A copy of the written contract authorizing the
30transaction containing the terms and conditions of the

1transaction or a copy of the receiving invoice.

2(3) A written record of the transaction.

3(b) Inspection of records.--The records referred to in
4subsection (a) shall be open at all reasonable times for
5inspection by the board or any person who is authorized in
6writing for that purpose by the board and who exhibits the
7written authorization to the [auctioneer or trading assistant]
8licensee or registrant before making an inspection.

9(c) Retention of records.--The written records shall be kept
10on file in the office of the [auctioneer or trading assistant]
11licensee or registrant for a period of [at least] not less than
12two years and, if the [auctioneer or trading assistant] licensee 
13or registrant is notified of a complaint against [him] the 
14licensee or registrant, the records shall be maintained [by the
15auctioneer or trading assistant] until the complaint is finally
16resolved.

17(d) Receipts.--Every [auctioneer or trading assistant]
18licensee or registrant must provide a written receipt for all
19transactions[. A] conducted by the licensee or registrant, which
20receipt may be provided electronically. [Receipts] Copies of 
21receipts must be retained for [at least] not less than two
22years.

23Section 17. Contracts for conduct of transaction.

24[(a) General rule.--]Prior to conducting a transaction, [an
25auctioneer or trading assistant] a licensee or registrant shall
26enter into a written contract, in duplicate, with the owner or
27consignor of the property to be sold, containing the terms and
28conditions upon which the licensee or registrant agrees to
29conduct the sale. Each contract shall include the license or 
30registration number of the licensee or registrant conducting the 

1transaction. The contract may be entered into electronically.
2The contracts shall be kept on file in the office of the
3[auctioneer or trading assistant and shall be open to inspection
4as provided in this act. It is unlawful for a person to
5advertise an auction or sale at auction or a sale through an
6online Internet bidding platform without including in the
7advertisement or notice of sale the name and license number of
8the auctioneer, auction house or auction company or the
9registration number of the trading assistant conducting the
10transaction] licensee or registrant and shall be open to 
11inspection as provided in this act.

12[(b) Penalty.--A person who violates subsection (a) commits
13a summary offense and shall, upon conviction, be sentenced to
14pay a fine not less than $50.]

15Section 13. Sections 18 and 20 of the act are amended to
16read:

17Section 18. Display of licenses and registration certificates.

18(a) General rule.--Every [individual, partnership,
19association or corporation licensed as an auctioneer] licensee 
20and registrant under this act shall prominently display the
21[license] certificate [in their] of licensure or registration at 
22the licensee's or registrant's office, and the current [renewal]
23wallet card or any facsimile thereof issued to the licensee or 
24registrant shall be shown on demand of any person at all
25auctions or sales at auction conducted by any licensee or in 
26connection with any transaction conducted by any registrant.

27(b) Apprentice auctioneers.--All auctioneers shall
28prominently display in their office the license certificate of
29any apprentice auctioneer employed by them and the current
30renewal card or any facsimile thereof of any apprentice

1auctioneer employed by them shall be available on demand at any
2sale in which an apprentice is employed. A license issued to an
3apprentice auctioneer shall designate his <-qualified sponsor by
4name. Prompt notice in writing within ten days shall be given to
5the board by the apprentice auctioneer of any change of
6qualified sponsor and of the name of the new <-qualified sponsor
7into whose service the apprentice auctioneer is about to enter
8or has entered. A new license shall be issued without charge by
9the board to the apprentice auctioneer for the unexpired term of
10the original license. The new sponsor shall be a qualified
11[auctioneer] sponsor. The change of <-qualified sponsor or
12employment by any licensed apprentice auctioneer without notice
13to the board shall automatically cancel the license issued to
14him. It is the duty of the <-qualified sponsor named in the
15license to notify the board within ten days of any change in
16status of an apprentice licensed under him. It is unlawful for
17an apprentice auctioneer to pay compensation to an auctioneer
18for the sole purpose of listing the apprentice as an employee.

19[(c) Suspension or revocation of license for violation.--The
20violation of this section by any licensee is sufficient cause
21for the suspension or revocation of his license at the
22discretion of the board after a hearing in accordance with this
23act.]

24Section 20. Investigations and enforcement actions.

25(a) General rule.--The board may, upon its own motion, and
26shall, promptly upon the verified complaint in writing of any
27person setting forth specifically the wrongful act or acts
28complained of, investigate any action or business transaction of
29any person licensed or registered by the board and may
30temporarily suspend or permanently revoke licenses or 

1registrations issued by the board or impose a civil penalty not
2exceeding [$1,000<-] $10,000 at any time when, after due
3proceedings provided in this act, it finds the licensee or 
4registrant to have been guilty in the performance or attempt to
5perform any of the acts prohibited to others than licensees or 
6registrants under this act, as follows:

7(1) Knowingly making any substantial misrepresentation.

8(2) Knowingly making any false promise of a character
9likely to influence, persuade or induce.

10(3) A continued or flagrant course of misrepresentation
11or making false promises through agents or apprentice
12auctioneers.

13(4) Within five years prior to the issuance of the
14license then in force, conviction in a court of competent
15jurisdiction in this or any other state or in Federal court
16of forgery, embezzlement, obtaining money under false
17pretenses, extortion, conspiracy to defraud or other like
18offense or offenses.

19(5) Any failure to account for or to pay over moneys
20belonging to others which have come into his or its
21possession arising out of a sales transaction within a
22reasonable time.

23(6) Any misleading or untruthful advertising.

24(7) Any act or conduct in connection with a sales
25transaction which demonstrates incompetency, bad faith or
26dishonesty.

27(8) Knowingly using false bidders, cappers or puffers.

28(9) Violating any of the provisions of this act.

29(10) Violating any regulation of the board.

30(11) Having his license to engage in the auction

1profession revoked or suspended or having other disciplinary
2action taken or his application for licensure refused,
3revoked or suspended by the proper licensing authority of
4another state.

5(12) [Failing] The failure of a licensee or registrant 
6who receives moneys on account of others to establish or 
7maintain an escrow account as required in section 21.

8(13) For any licensed auctioneer or apprentice
9auctioneer to bid and buy for himself at any auction he is
10conducting.

11(14) For any [licensed auctioneer or apprentice
12auctioneer] licensee or registrant to pay any compensation in
13money or other valuable thing to any person other than a
14[licensed auctioneer or apprentice auctioneer] licensee or 
15registrant for the rendering of any service or the doing of
16any of the acts by this act forbidden to be rendered or
17performed by other than licensees <-or registrants.

18(15) For a licensee or registrant to advertise an
19auction or sale at auction or a sale through an Internet
20competitive consignment sale platform without including in
21the advertisement or notice of sale the name and the license
22or registration number of the licensee or registrant
23conducting the transaction.

24(b) Notice of charges.--Before refusing, suspending or
25revoking any license or registration, the board shall, in
26writing, notify the applicant [or], licensee or registrant of
27the charges or allegations against him[, accompanying the notice
28with a copy of the complaint filed, if any], and the board shall
29accord the applicant [or], licensee or registrant ample
30opportunity to be heard in person or by counsel.

1Section 14. Section 21 of the act, amended October 8, 2008
2(P.L.1080, No.89), is amended to read:

3Section 21. Escrow account.

4Every [auctioneer] licensee and registrant shall
5[immediately] promptly deposit <-moneys[,] moneys, received from
6the sale of <-property[,] property, belonging to [others] the 
7seller or consignor in a separate custodial or trust fund
8account maintained by the [auctioneer or trading assistant]
9licensee or registrant until the transaction involved is
10terminated, at which time the [auctioneer or trading assistant]
11licensee or registrant shall account for the full amount
12received. Such moneys received by an auctioneer, apprentice 
13auctioneer or trading assistant working for an auction company 
14or trading assistant company shall be promptly turned over to 
15such company for deposit and accounting.

16Section 15. Sections 22 and 23 of the act are amended to
17read:

18Section 22. Hearing on charges.

19(a) General rule.--If the applicant [or], licensee or 
20registrant desires, the board shall grant a hearing upon the
21charges. The said hearings may be held by the board or any
22member thereof or by any other person duly authorized by the
23board for such purpose in any particular case.

24(b) Report of hearing officer.--If the hearing is held by a
25member of the board or by a person authorized by the board, a
26written report of the hearing shall be made to the board.

27(c) Action on report of hearing officer.--The board may
28adopt the findings in the report or may, with or without
29additional testimony, either return the report for any further
30consideration the board deems necessary or make additional or

1other findings of fact on the basis of all the legally probative
2evidence in the record and enter its findings of fact and
3conclusions of law and order in accordance with the requirements
4for the issuance of an adjudication under [Title 2 of the
5Pennsylvania Consolidated Statutes] 2 Pa.C.S. (relating to
6administrative law and procedure).

7Section 23. Administration and enforcement.

8(a) Administration and enforcement.--The board shall
9administer and enforce this act.

10(b) Issuance and supervision of licenses.--It is the duty of
11the board, on payment of the required fee and on compliance with
12the requirements of this act, to issue a license as an
13auctioneer, apprentice auctioneer or auction company and to
14issue registrations to trading assistants and to trading
15assistant companies. The board shall supervise and control all
16licenses and registrations issued under this act.

17Section 16. Sections 26(c), 27, 28 and 29 of the act,
18amended October 8, 2008 (P.L.1080, No.89), are amended to read:

19Section 26. Revocation or suspension of license or
20registration.

21* * *

22(c) Revocation of license or registration of legally 
23recognized entity for violation by member or officer.--In the
24event of the revocation or suspension of the license or 
25registration issued to any member of a partnership or to any
26officer of an association [or], corporation, limited liability 
27company or other entity, the license or registration issued to
28the [partnership, association or corporation] legally recognized 
29entity shall be revoked by the board unless, within a time fixed
30by the board, the connection of the member of the partnership is

1severed and his interest in the partnership and his share in its
2activities brought to an end or the officer of the association
3[or], corporation, limited liability company or other entity is
4discharged and has no further participation in its activities.

5Section 27. Issuance of new license or registration pending
6investigation and decision.

7Pending an investigation or proceeding before the board
8affecting any licensee or registrant and pending final decision
9upon any appeal taken by a licensee or registrant from the
10ruling of the board, no new registration may be issued or
11license may be issued to a licensee or to a partnership of which
12he is a member or employee or to an association [or],
13corporation, limited liability company or other entity of which
14he is an officer or employee except for the period of the
15investigation or proceeding and subject to the action of the
16board.

17Section 28. Issuance of new license or registration after
18revocation.

19(a) General rule.--After the revocation of any license or
20registration, no new license or registration may be issued to
21the same licensee or registrant within a period of at least [one
22year] five years from the date of the revocation nor, except in
23the sole discretion of the board and subject to the conditions
24of this act, at any time thereafter.

25(b) Criminal conduct.--No license or registration shall be
26issued by the board to any person known by it to have been,
27within five years, convicted of forgery, embezzlement, obtaining
28money under false pretenses, extortion, criminal conspiracy to
29defraud or other like offense, or to any copartnership of which
30any person is a member or to any association [or], corporation, 

1limited liability company or other entity of which any person is
2an officer or employee or in which as a stockholder any person
3has or exercises a controlling interest either directly or
4indirectly.

5Section 29. Penalties.

6(a) Criminal penalties.--Any person who engages in or
7carries on the profession or acts in the capacity of an
8auctioneer, apprentice auctioneer, [auction house,] auction
9company, trading assistant or trading assistant company in this
10Commonwealth without a current license or registration or who
11employs any [person] individual without a current license or 
12registration as an auctioneer, apprentice auctioneer or trading 
13assistant:

14(1) For a first offense, commits a summary offense and
15shall, upon conviction, be sentenced to pay a fine not
16exceeding $500 or to imprisonment not exceeding three months,
17or both.

18(2) For a second or subsequent offense, commits a
19misdemeanor of the third degree and shall, upon conviction,
20be sentenced to pay a fine of not less than $2,000 but not
21more than $5,000 or to imprisonment for not less than one
22year but not more than two years, or both.

23(b) Civil penalty.--In addition to any other civil remedy or
24criminal penalty provided for in this act, the board, by a vote
25of the majority of the maximum number of the authorized
26membership of the board as provided by law or by a vote of the
27majority of the duly qualified and confirmed membership or a
28minimum of four members, whichever is greater, may levy a civil
29penalty of up to [$1,000] $10,000 on any person who engages in
30the business or practice of auctioneering, or acts as a trading 

1assistant or trading assistant company, without being properly
2licensed or registered to do so under this act. The board shall
3levy this penalty only after affording the accused party the
4opportunity for a hearing, as provided in [Title 2 of the
5Pennsylvania Consolidated Statutes] 2 Pa.C.S. (relating to
6administrative law and procedure).

7(c) Failure to register.--Any [individual<-] person who fails
8to register under section [10.1] 5.1 may be subject to a penalty
9of up to $500 levied by the commissioner. The [individual<-] 
10person may request a hearing before the board, which shall be
11conducted in accordance with 2 Pa.C.S.

12Section 17. Section 30 of the act is amended to read:

13Section 30. Actions by unlicensed or unregistered persons
14prohibited.

15No action or proceeding may be instituted and no recovery may
16be had in any court of this Commonwealth by any [individual,
17partnership, association or corporation] person for compensation
18for any act done or services rendered the doing or rendering of
19which is prohibited under this act to other than persons
20licensed or registered by the board, unless the [individual,
21partnership, association or corporation] person was licensed or 
22registered at the time of doing the act or rendering of service.

23Section 18. This act shall take effect in 60 days.