Current Status Introducing Body:House Bill Number:4050 Ratification Number:264 Act Number:155 Primary Sponsor:Wilkes Type of Legislation:GB Subject:Auctioneers Companion Bill Number:757 Date Bill Passed both Bodies:19930603 Computer Document Number:436/11223AC.93 Governor's Action:S Date of Governor's Action:19930614 Introduced Date:19930414 Date of Last Amendment:19930527 Last History Body:------ Last History Date:19930614 Last History Type:Act No. 155 Scope of Legislation:Statewide All Sponsors:Wilkes Type of Legislation:General Bill
Bill Body Date Action Description CMN Leg Involved
---- ------ ------------ ------------------------------ --- ------------
4050 ------ 19930614 Act No. 155
4050 ------ 19930614 Signed by Governor
4050 ------ 19930610 Ratified R 264
4050 Senate 19930603 Read third time, enrolled for
ratification
4050 Senate 19930602 Unanimous consent removing
notice of general amendments
and ordered to receive third
reading on Thursday, June 3,
1993
4050 Senate 19930602 Read second time, notice of
general amendments
4050 Senate 19930601 Unanimous consent for second
reading with notice of
general amendments on
Wednesday, June 2, 1993
4050 Senate 19930601 Introduced, read first time,
placed on Calendar without
reference
4050 House 19930527 Amended, read third time,
sent to Senate
4050 House 19930526 Amended, read second time
4050 House 19930519 Committee Report: Favorable 26
with amendment
4050 House 19930414 Introduced, read first time, 26
referred to Committee
View additional legislative information at the LPITS web site.
(A155, R264, H4050)
AN ACT TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 40-6-85 SO AS TO PROVIDE LICENSING REQUIREMENTS FOR AN AUCTION FIRM; BY ADDING SECTION 40-6-155 SO AS TO PROVIDE TRUST AND ESCROW ACCOUNT REQUIREMENTS FOR AUCTIONEERS; BY ADDING SECTION 40-6-175 SO AS TO AUTHORIZE THE SOUTH CAROLINA AUCTIONEERS' COMMISSION TO ASSESS FINES FOR VIOLATIONS; BY AMENDING SECTION 40-6-10, AS AMENDED, RELATING TO DEFINITIONS, SO AS TO REVISE AND ADD CERTAIN DEFINITIONS; BY AMENDING SECTION 40-6-20, AS AMENDED, RELATING TO AUCTIONS WHICH ARE NOT SUBJECT TO THE AUTHORITY OF THE SOUTH CAROLINA AUCTIONEERS' COMMISSION, SO AS TO EXEMPT AUCTIONS FOR MOTOR VEHICLES AND TO PROVIDE EXCEPTIONS TO THE EXEMPTIONS; BY AMENDING SECTION 40-6-50, RELATING TO LICENSURE, SO AS TO PROVIDE THAT A LICENSE IS REQUIRED UNLESS THE AUCTION IS EXEMPT; TO AMEND SECTION 40-6-60, AS AMENDED, RELATING TO LICENSING REQUIREMENTS, SO AS TO INCLUDE APPRENTICE AUCTIONEERS AND AUCTION FIRMS AND TO REQUIRE PAYING CERTAIN FEES AND PROVIDING CRIMINAL HISTORY AND CREDIT RECORDS; BY AMENDING SECTIONS 40-6-70 AND 40-6-80, BOTH AS AMENDED, RELATING TO APPRENTICE AUCTIONEER AND AUCTIONEER LICENSE REQUIREMENTS, SO AS TO REQUIRE THAT THE LICENSING EXAMINATION MUST BE WRITTEN; BY AMENDING SECTION 40-6-90, RELATING TO RENEWAL OF LICENSES, SO AS TO PROVIDE FOR THE DATE OF EXPIRATION AND CONTINUING EDUCATION REQUIREMENTS; BY AMENDING SECTION 40-6-130, AS AMENDED, RELATING TO RECIPROCAL LICENSING, SO AS TO PROVIDE THAT A RECIPROCAL LICENSE MAY BE ISSUED IF THE APPLICANT'S RESIDENT STATE PROVIDES RECIPROCITY TO SOUTH CAROLINA RESIDENTS AND TO PROVIDE REQUIREMENTS FOR OBTAINING SUCH A LICENSE; BY AMENDING SECTION 40-6-150, RELATING TO WRITTEN AGREEMENTS TO CONDUCT AUCTIONS AND RECORDS OF SALES, SO AS TO REQUIRE THAT THESE AGREEMENTS AND RECORDS MUST BE MADE AVAILABLE TO THE COMMISSION ON REQUEST; BY AMENDING SECTION 40-6-160, AS AMENDED, RELATING TO GROUNDS FOR DENIAL, SUSPENSION, AND REVOCATION OF LICENSES, SO AS TO PROVIDE PROCEDURES FOR INVESTIGATIONS, TO ADD VIOLATIONS FOR MAKING FALSE STATEMENTS ON APPLICATIONS AND IN INVESTIGATIONS, FOR FAILING TO PROPERLY USE AND MAINTAIN TRUST OR ESCROW ACCOUNTS, FOR FAILING TO PAY FINES, FOR FAILING TO DISCLOSE REQUIRED INFORMATION, AND FOR LACK OF FINANCIAL RESPONSIBILITY, AND TO AUTHORIZE THE COMMISSION ALSO TO ISSUE ORDERS FOR COMPLIANCE AND TO PLACE A LICENSEE ON PROBATION; BY AMENDING SECTION 40-6-180, AS AMENDED, RELATING TO NOTICE AND HEARING REQUIREMENTS, SO AS TO REVISE THESE REQUIREMENTS; BY AMENDING SECTION 40-6-200, RELATING TO THE AUCTIONEER RECOVERY FUND, SO AS TO PROVIDE THAT NEW LICENSEES MUST CONTRIBUTE TO THE FUND AND TO PROVIDE HOW EXCESS FUNDS MAY BE EXPENDED; BY AMENDING SECTION 40-6-220, RELATING TO CLAIMS UNDER THE FUND, SO AS TO PROVIDE THAT A PERSON'S LICENSE MAY BE SUSPENDED OR REVOKED AFTER PAYMENT OF A CLAIM FILED AGAINST THE PERSON; AND BY PROVIDING THAT CONTINUING EDUCATION REQUIREMENTS TAKE EFFECT JUNE 30, 1995.
Be it enacted by the General Assembly of the State of South Carolina:
Licensing of auction firms
SECTION 1. The 1976 Code is amended by adding:
"Section 40-6-85. (A) An auction firm must be licensed as an auction business even though no owner or officer of that business acts as an auctioneer. To be licensed an auction firm must pay a fee to the Auctioneer Recovery Fund as required by Section 40-6-200 and must pay other fees as determined by the commission.
(B) Before an auction firm license is issued, the person designated as the applicant shall take a written examination approved by the commission and demonstrate to the satisfaction of the commission a thorough understanding of the law relating to the conduct of the auction business and other matters the commission considers appropriate. An individual who is licensed as an auctioneer and who is the designated person applying for an auction firm license is not required to take the auction firm examination. Licensed real estate brokers and real estate firms may be exempt from the auction firm examination if they employ or associate themselves with a licensed auctioneer to handle those aspects of the transactions peculiar to the auctioneer profession. A person or entity licensed as an auction firm in good standing on this act's effective date is not required to take an examination in order to maintain or to renew an auction firm license, if the license does not expire or lapse and is not suspended or revoked by the commission."
Trust and escrow accounts
SECTION 2. The 1976 Code is amended by adding:
"Section 40-6-155. (A) A licensee who handles the proceeds of an auction shall maintain a trust or escrow account with an insured bank or savings and loan association and shall deposit in this account within three business days all funds received for the benefit of another person, unless otherwise required by law or the owner or consignor of the property auctioned is paid immediately after the sale.
(B) Upon issuance or renewal of a license, the licensee must provide the commission with the name of the bank and the account number of the trust or escrow account in which the funds of others are maintained and authorization permitting the examination of the account by the commission or its authorized representative, unless the licensee has provided certification to the commission that funds are paid within three business days. A licensee must notify the commission by certified mail, return receipt requested, of a change of bank, account number, or location of the trust or escrow account and, at that time, shall complete the required authorization permitting examination of the account by the commission or its authorized representative.
(C) A licensed auctioneer or licensed apprentice auctioneer in this State who works directly for a licensed auction firm or who works directly for another licensed auctioneer who maintains an active escrow account may use that escrow account and number in all applications for licensure or renewal, if the escrow account is used solely for the purpose of holding funds of others in relation to auctions.
(D) A licensee shall maintain complete records for at least three years showing the deposit, maintenance, and withdrawal of trust or escrow funds. The commission or its designated agent may inspect these records periodically without prior notice."
Civil fine
SECTION 3. The 1976 Code is amended by adding:
"Section 40-6-175. After a hearing as provided for in Section 40-6-160 and upon a finding by the commission that a person has violated this chapter or a regulation promulgated pursuant to this chapter, the commission may order the person to pay a civil fine of not less than one hundred dollars and not more than five thousand dollars to be assessed and collected by the commission. These fines are in addition to any other sanction imposed by the commission and must be deposited in the state general fund."
Definitions
SECTION 4. Section 40-6-10 of the 1976 Code, as last amended by Act 599 of 1988, is further amended to read:
"Section 40-6-10. For the purposes of this chapter the following definitions apply:
(1) `Auction' means the sale of goods or real estate by means of exchanges between an auctioneer and members of an audience, the exchanges consisting of a series of invitations for offers made by the auctioneer, offer by members of the audience, and the acceptance by the auctioneer of the highest or most favorable offer.
(2) `Auctioneer' means a person who conducts or offers to conduct auctions and includes apprentice auctioneers except as stricter standards are specified by this chapter for apprentice auctioneers.
(3) `Absolute auction' means the sale of real or personal property at auction whereby every item offered from the block is sold to the highest bidder without reserve and without the requirement of a minimum bid or other conditions which limit the sale other than to the highest bidder.
(4) `Estate sale' means the sale at auction of property of a specified deceased person or the property of a specified living person's estate but does not mean the sale at auction of property of any other person.
(5) `Auction firm' means a sole proprietorship of which the owner is not a licensed auctioneer or a partnership, association, or corporation, not otherwise exempt from this chapter, that sells either directly or through agents, real or personal property at auction or that arranges, sponsors, manages, conducts, or advertises auctions or that in the regular course of business uses or allows the use of its facilities for auctions. This definition applies whether or not the owner or officer of that business acts as an auctioneer.
(6) `Fund' means the Auctioneer Recovery Fund.
(7) `Owner' means the bona fide owner of the property being offered for sale; in the case of a partnership, `owner' means a general partner in a partnership that owns the property being offered for sale, provided that in the case of a limited partnership it has filed a certificate of limited partnership as required by Section 33-42-210; in the case of a corporation, `owner' means an owner or director of a corporation that owns the property being offered for sale provided that the corporation is registered to do business in the State."
Application of chapter; exceptions
SECTION 5. Section 40-6-20 of the 1976 Code, as last amended by Act 199 of 1987, is further amended to read:
"Section 40-6-20. (A) This chapter applies to all auctions held in this State except the following:
(1) auctions conducted by the owner of all of the goods being offered or his attorney, unless the owner's regular course of business includes engaging in the sale of goods or real estate by means of auction or unless the owner originally acquired the goods for the purpose of resale;
(2) auctions conducted by or under the direction of a public authority; (3) auctions pursuant to a judicial order;
(4) sales required by law to be at auction;
(5) auctions conducted on behalf of a charitable, civic, or religious organization if the person conducting the sale receives no compensation;
(6) auctions of motor vehicles among motor vehicle dealers if conducted by an auctioneer licensed under this chapter;
(7) auctions by a trustee pursuant to a valid power of sale;
(8) auctions sponsored by purebred livestock (beef cattle, swine, horses, and sheep) associations and purebred livestock breeder farm sales to the extent that purebred livestock auctioneers, upon proof to the commission that they are qualified purebred livestock auctioneers, are exempt from the examination and the Auctioneer Recovery Fund requirements provided for in this chapter for the purpose of conducting purebred livestock auctions, but not from the licensing and license fee provisions of this chapter;
(9) auctions sponsored by tobacco auctioneers to the extent that tobacco auctioneers, upon proof to the commission that they are qualified tobacco auctioneers, are exempt from the examination and the fund requirements provided for in this chapter for the purpose of conducting tobacco auctions but not from the licensing and license fee provisions of this chapter.
(B) The exceptions provided for in items (2), (4), and (5) of subsection (A) do not apply to:
(1) a person or entity engaged in the business of organizing, arranging, or conducting auction sales for compensation pursuant to item (2), (4), or (5) of subsection (A); or
(2) a person or entity conducting a sale pursuant to item (2), (4), or (5) of subsection (A) who is licensed under this chapter or licensed in any other state.
(C) If an auction is conducted that is exempt from this chapter, no claim may be made against or paid from the fund."
License required to conduct auction
SECTION 6. Section 40-6-50 of the 1976 Code is amended to read:
"Section 40-6-50. Unless the auction is exempt under Section 40-6-20, no person shall sell or offer to sell goods or real estate at auction in this State or perform an act for which an auctioneer or apprentice auctioneer license is required unless the person holds a currently valid license issued under this chapter. No individual, partnership, corporation, or any other legal or commercial entity shall sell or offer to sell goods or real estate at auction unless the entity holds a currently valid auction firm license issued under this chapter, but no such entity is required to hold an auction firm license to sell livestock or tobacco at auction so long as those sales are regulated by another state agency. However, if the commercial entity consists of or is entirely owned by only one individual auctioneer who holds a currently valid individual auctioneer license, that commercial entity is not required to hold an auction firm license."
License requirements, generally
SECTION 7. Section 40-6-60 of the 1976 Code, as last amended by Act 38 of 1991, is further amended to read:
"Section 40-6-60. (A) No person may be licensed under this chapter as an apprentice auctioneer or auctioneer or receive an auction firm license if the person:
(1) is under eighteen years of age;
(2) has been convicted of a felony or any other crime involving fraud or moral turpitude within the preceding five years; for purposes of this item, a person has been convicted if the person has pled guilty, pled nolo contendre, or been found guilty after a trial; or
(3) has had an auctioneer, apprentice auctioneer, or auction firm license revoked within the preceding five years.
(B) No person may be issued an auctioneer, apprentice auctioneer, or auction firm license unless the person has paid a fee to the Auctioneer Recovery Fund as required by Section 40-6-200 and the person has provided a criminal history conviction record from the South Carolina Law Enforcement Division and if the person is a resident of another state, from an equivalent agency in that state.
(C) No license revoked under this chapter may be reinstated except upon an affirmative vote of a majority of the members of the commission.
(D) The credit record and auctioneering license disciplinary history of an applicant may be considered by the commission in determining whether or not to issue or renew a license. A fee of ten dollars must be paid to the commission for the applicant's credit investigation."
Apprentice Auctioneer License requirements
SECTION 8. Section 40-6-70 of the 1976 Code, as last amended by Act 38 of 1991, is further amended to read:
"Section 40-6-70. An applicant for an apprentice auctioneer license shall submit a written application on a form approved by the commission. To receive a license the applicant shall take a written examination approved by the commission and perform on it to the satisfaction of the commission. The examination must test the applicant's understanding of the law relating to auctioneers and auctions, ethical practices for auctioneers, and the mathematics applicable to the auctioneer business. The examination must be given at least twice a year in Columbia and at other times and places the commission designates. However, no person may take the examination within six months after having failed it a second time. An apprentice auctioneer application and license must name a licensed auctioneer to serve as the supervisor of the apprentice. No apprentice auctioneer may enter into an agreement to conduct an auction or conduct an auction without the express approval of the apprentice auctioneer's supervisor. The supervisor regularly shall review the records the apprentice is required to maintain and see that they are accurate and current."
Auctioneer license requirements
SECTION 9. The first paragraph of Section 40-6-80 of the 1976 Code, as last amended by Act 38 of 1991, is further amended to read:
"No person may be licensed as an auctioneer unless the person has held an apprentice auctioneer license, served as an apprentice auctioneer for the preceding year, and has taken a written examination approved by the commission and performed on it to the satisfaction of the commission. The examination must test the applicant's understanding of the law relating to auctioneers and auctions, ethical practices for auctioneers, the mathematics applicable to the auctioneer business, and other matters relating to auctions the commission considers appropriate. The examination must be given at least twice a year in Columbia and at other times and places the commission designates. However, no person may take the examination within six months after having failed it a second time."
License term and renewal
SECTION 10. Section 40-6-90 of the 1976 Code is amended to read:
"Section 40-6-90. (A) A license issued under this chapter is valid from July first of the year issued or from the date issued, whichever is later, through the following June thirtieth unless revoked or suspended pursuant to this chapter or a regulation promulgated under this chapter. A license may be renewed annually except that an apprentice auctioneer license may not be renewed more than one time. No examination is required for renewal of an auctioneer, apprentice auctioneer, or auction firm license if the application for renewal is made within ninety days of the expiration of the license.
(B) When an auctioneer licensee applies for license renewal, the licensee shall submit with the renewal form proof, in a form acceptable to the commission, that the licensee has acquired commission-approved continuing education of at least four hours within the previous twelve months. Continuing education is not required of apprentice auctioneers and auction firm license holders unless the firm owner is a licensed auctioneer.
(C) The renewal of a lapsed license is not retroactive and does not limit the authority of the courts or the commission to take disciplinary action against a licensee who engages in the auction profession without a current license."
Reciprocal licensing
SECTION 11. Section 40-6-130 of the 1976 Code, as last amended by Act 38 of 1991, is further amended to read:
"Section 40-6-130. (A) A person who holds a valid auctioneer license in another state may apply for and be granted a South Carolina license if the requirements of that person's resident state, as determined by the commission, are at least substantially equivalent to the requirements of this chapter, if the resident state extends similar reciprocal privileges to auctioneers who are residents and licensed by this State.
(B) An applicant under this section shall submit an application and other documentation and proof of eligibility for licensure as may be required by the commission but is not required to take the examination required under Section 40-6-80.
(C) An applicant shall pay the fee required in Section 40-6-140 and shall file with the commission an irrevocable consent that service on the commission is sufficient service or process for actions against the applicant by a resident of this State arising out of the applicant's auctioneering activities.
(D) An applicant under this section shall pay the fee required under Section 40-6-200 whether or not the applicant currently is bonded as an auctioneer or apprentice auctioneer in the applicant's home state. A license issued under this section must be marked to indicate that its holder is a nonresident reciprocal licensee.
(E) A license issued pursuant to this section is valid from the date of issuance to the following June thirtieth and may be renewed from year to year unless suspended or revoked pursuant to this chapter or a regulation promulgated under this chapter, if the licensee continues to be a resident of and licensed in good standing in the licensee's resident state.
(F) A person licensed under this section shall notify the commission of the lapse, surrender, suspension, revocation, or any other loss of license in the person's resident state. The notice must be sent to the commission, by certified mail, return receipt requested, within ten days of the occurrence.
(G) A license issued under this section immediately must be suspended or revoked based upon the occurrence of any of the events set out in subsection (E) or based upon a change of principal state residence of the reciprocal licensee.
(H) A person whose license is terminated as a result of a change of principal state residence may reapply for reciprocal status if the person is otherwise eligible for a license based upon the new state residence and submits with the application the fees required by the commission.
(I) Notwithstanding any other provision of this section, a reciprocal licensee who subsequently becomes a domiciliary of this State may request by application the reciprocal license be converted to that of an in-state licensee without having to take the examination required by Section 40-6-80. The commission may require an applicant to pay processing and application fees it considers appropriate."
Auction agreements; records of goods
SECTION 12. Section 40-6-150 of the 1976 Code is amended to read:
"Section 40-6-150. (A) No licensee may conduct an auction in this State without first having a written agreement with the owner of any property to be sold. The agreement shall contain the terms and conditions upon which the licensee received the goods for sale. The licensee shall provide the owner with a signed copy of the agreement and shall keep at least one copy for three years from the date of the agreement. A written agreement is not required for a sale at auction if the sale is made at an auction house or similar place where members of the public are generally offered the opportunity to present goods for sale. Copies of all contracts must be made available to the commission or its designated agent upon request.
(B) A licensee shall maintain accurate records upon receipt of goods for auction and before their sale, which shall include the name and address of the person who employed the licensee to sell the goods at auction and the name and address of the owner of the goods to be sold. These records must be open for inspection by the commission or its designated agent upon request.
(D) A licensee shall have his pocket card license in his possession at each auction he conducts."
Disciplinary actions, investigations
SECTION 13. Section 40-6-160 of the 1976 Code, as last amended by Act 511 of 1990, is further amended to read:
"Section 40-6-160. (A) Upon its own motion or a verified complaint and a prima facie showing of a violation of this chapter or a regulation promulgated under this chapter, the commission may investigate the actions of an auctioneer, apprentice auctioneer, auction firm, or a person who has unlawfully assumed to act in such capacity within this State. Upon notice and a hearing the commission may deny, suspend, or revoke a license issued under this chapter and assess a fine if the licensee is found by the commission to have:
(1) violated this chapter or a regulation promulgated under this chapter;
(2) engaged in a continued and flagrant course of misrepresentation or made false promises or an employee of the licensee or someone acting on behalf of and with the licensee's consent made false promises;
(3) failed to account for or to pay over within a reasonable time, not to exceed thirty days, money belonging to another which has come into the licensee's possession through an auction sale;
(4) used misleading or untruthful advertising;
(5) engaged in conduct in connection with a sales transaction which demonstrates bad faith or dishonesty;
(6) knowingly used false bidders, cappers, or pullers or knowingly made a material false statement or representation;
(7) been convicted of a felony or an act involving fraud or moral turpitude;
(8) wilfully failed to properly and fully complete an application or made a false statement or gave false information in connection with an application for a license or renewal or reinstatement of a license or an investigation by the commission or the commission's designated agent;
(9) failed to maintain or to deposit in a trust or escrow account in an insured bank or savings and loan association within three business days funds received for another person through sale at auction, unless otherwise required by law;
(10) failed to pay a fine assessed or ordered by the commission under Section 40-6-175;
(11) wilfully failed to properly make a disclosure or to provide documents or information required by this chapter or the commission;
(12) demonstrated lack of financial responsibility.
The commission may issue a written or oral reprimand for misconduct as set out in this subsection when, in its judgment, the misconduct does not warrant suspension or revocation of a license.
(B) The commission may conduct an investigation which it considers necessary to determine whether a person has violated this chapter or an order issued or a regulation promulgated under this chapter or to aid in the enforcement of this chapter or regulations promulgated under this chapter. The commission may require or permit a person to file a statement in writing, under oath or otherwise as the commission determines, as to facts and circumstances concerning the matter being investigated.
(C) For the purpose of an investigation or proceeding under this chapter, the commission or its designated agent may administer oaths and upon its own motion or upon request of any party, shall subpoena witnesses, compel their attendance, take evidence, and require the production of any matter which is relevant to the investigation, including the existence, description, nature, custody, condition, and location of any books, documents, or other tangible items and the identity and location of persons having knowledge of relevant facts or any other matter reasonably calculated to lead to the discovery of material evidence. Upon failure to obey a subpoena or to answer questions propounded by the commission or its designated agent and upon reasonable notice to all persons affected, the commission through the Attorney General may apply to the circuit court for an order compelling compliance.
(D) The authority of the commission to revoke or suspend a licensee for violation of this chapter or a regulation promulgated under this chapter includes the authority to place a licensee on probation for a period not to exceed two years and upon conditions to be determined by the commission. (E) The commission may:
(1) issue an order requiring a person to cease and desist from any unlawful practice and to take action as the commission considers necessary to carry out the purposes of this chapter if after notice and hearing, the commission determines that a person has:
(a) violated this chapter;
(b) directly or through an agent or employee knowingly engaged in false, deceptive, or misleading practices in the sale of goods or real estate at auction, including advertising and promotions;
(c) violated an order or regulation of the commission;
(2) make findings of fact in writing that the public interest will be irreparably harmed by delay in issuing an order and in that case may issue a temporary order. Before issuing the temporary cease and desist order, the commission or its designated agent, whenever possible by telephone or otherwise, shall notify the affected person of the commission's intent to issue a cease and desist order. A temporary cease and desist order shall include a provision that upon request a hearing must be held promptly to determine whether or not the order shall become permanent."
Due process requirements
SECTION 14. Section 40-6-180 of the 1976 Code, as last amended by Act 37 of 1987, is further amended to read:
"Section 40-6-180. Before denying, suspending, or revoking a license and before issuing a written or oral reprimand or assessing a fine, the commission shall notify the applicant or licensee of the charges and grant the applicant or licensee an opportunity to be heard. The hearing must be held not less than thirty days after the applicant or licensee is notified of the charges. If charges are brought against an apprentice auctioneer, the apprentice's supervising auctioneer also must be notified of the charges. Hearing of the charges must be at a time and place designated by the commission and must be conducted in accordance with the Administrative Procedures Act."
Auctioneer Recovery Fund; funding and use of funds
SECTION 15. Section 40-6-200(B) and (C) of the 1976 Code, as added by Act 38 of 1991, are amended to read:
"(B) To initially establish the fund and when monies, including principal and interest, are less than forty-five thousand dollars at the end of the fiscal year after payment of claims and expenses, a licensee shall pay, in addition to the license fees required under this chapter, a fund contribution fee determined by the commission. After the fund is initially established a new applicant for licensure also shall pay a fund contribution fee. However, any fee assessed under this subsection may not exceed fifty dollars a year. (C) The commission may use contents of the fund in excess of one hundred thousand dollars to:
(1) promote education and research in the auctioneer profession in order to benefit persons licensed under this chapter and to improve the efficiency of the profession;
(2) underwrite educational seminars, training centers, and other forms of educational projects for the use and benefit of licensees;
(3) sponsor, contract for, or underwrite education and research projects in order to advance the auctioneer profession in South Carolina; and
(4) cooperate with associations of auctioneers or other groups in order to promote the enlightenment and advancement of the auctioneer profession in South Carolina.
(D) If monies, including principal and interest, in the fund exceed one hundred twenty-five thousand dollars at the end of the fiscal year after payment of claims, expenses, and educational program funding the amount in excess must be deposited in the state general fund."
Suspension or revocation of license upon payment of claim
SECTION 16. Section 40-6-220(B) of the 1976 Code, as added by Act 38 of 1991, is amended to read:
"(B) Upon payment of a claim, the license of the person against whom the claim was applied is suspended or revoked, as the commission determines. The licensee must not be issued another license until he repays the monies from his claim to the fund, including interest at the rate of eight percent a year. Nothing in this section prevents the commission or other authority from pursuing other remedies at law or equity."
Continuing education requirements apply after June 30, 1995
SECTION 17. The amendments to Section 40-6-90(B) as contained in Section 10 of this act apply to renewal of licenses expiring after June 30, 1995.
Time effective
SECTION 18. This act takes effect upon approval by the Governor.
Approved the 14th day of June, 1993.