SUBCHAPTER 4B ‑ AUCTIONEER LICENSING BOARD
SECTION .0100 ‑ ORGANIZATION AND GENERAL PROVISIONS
21 NCAC 04B .0101 PURPOSE
It is the responsibility of the Board to license
auctioneers, apprentice auctioneers, and auction firms and to see that the qualifications
and activities of those engaged in auctioneering activities are in accord with
law and in the best interests of the public.
The Board is not a board of arbitration and has no
jurisdiction to settle disputes between parties concerning such matters of
contract as the rate of commissions, the division of commissions, pay of
assistants, and similar matters.
History Note: Authority G.S. 85B‑1 through 85B‑9;
Eff. November 1, 1984.
21 NCAC 04B .0102 BOARD OFFICE
The administrative offices of the Board are located at:
602 Stellata Drive
Fuquay-Varina, North Carolina 27526
Telephone: (919) 567-2844
Office hours are 8:30 a.m. until 5:00 p.m., Monday through Friday, except holidays.
History Note: Authority G.S. 85B‑3.1;
Eff. November 1, 1984;
Amended Eff. March 1, 2003; June 1, 1999; July 1, 1995;
April 1, 1989.
21 NCAC 04B .0103 DEFINITIONS
Whenever used in this Chapter:
(1) "Auctioneers Law" or "licensing
law" shall refer to G.S. 85B;
(2) "Buyer's Premium" shall mean any
additional charge owed by a buyer to the auctioneer, auction firm, or directly
to the seller above and beyond the highest accepted bid amount;
(3) "Board" shall mean the North Carolina
Auctioneers Commission;
(4) "Minimum Bid" as used in auctions shall
mean minimum opening bids;
(5) "Principal(s)" as it pertains to auction
firms shall mean director(s), officer(s) and partner(s);
(6) "Non-Auction Firm Business" shall mean a
sole licensed auctioneer whose business is not defined as an "Auction
Firm" as set forth in G.S. 85B-1(6);
(7) "Auction house," "auction
barn," or "auction gallery" shall mean an auction business that
conducts auctions at a single location and where consignments are brought to
the location by either the auctioneer/auction firm or the public to be sold at
auction.
History Note: Authority G.S. 85B-1; 85B-3.1; 85B-4;
Eff. November 1, 1984;
Amended Eff. May 1, 2006; April 1, 2001; April 1, 1996;
January 1, 1995.
21 NCAC 04B .0104 ADMINISTRATIVE LAW PROCEDURES
(a) Contested Cases. Administrative hearings in contested
cases conducted by the Board or an administrative law judge (as authorized in
G.S. 150B‑40) shall be governed by:
(1) procedures set out in Article 3A of G.S.
150B;
(2) insofar as relevant, the Rules of Civil
Procedure as contained in G.S. 1A‑1;
(3) insofar as relevant, the General Rules of
Practice for the Superior and District Courts as authorized by G.S. 7A‑34
and found in the Rules Volume of the North Carolina General Statutes.
The rules of
Civil Procedure and the General Rules of Practice for the Superior and District
Courts are hereby incorporated by reference for contested cases for which the
Board has authority to adopt rules under G.S. 150B‑38(h). Such
incorporations by reference shall automatically include any later amendments
and editions of the incorporated matter.
(b) Declaratory Rulings. In addition to the procedures set
out in G.S. 150B-4, petitions for declaratory rulings shall be submitted to the
Board and shall contain:
(1) petitioner's name, address and telephone
number;
(2) the statute, rule, or both to which the
request relates;
(3) all facts and information which are
relevant to the request;
(4) a concise statement of the manner in which
petitioner has been aggrieved;
(5) a draft of the declaratory ruling sought by
petitioner, if a specified outcome is sought by petitioner;
(6) practices likely to be affected by the
declaratory ruling;
(7) a list or description of persons likely to
be affected by the declaratory ruling; and
(8) a statement as to whether the petitioner
desires to present oral argument, not to exceed 30 minutes, to the Board prior
to its decision.
The Board shall ordinarily refuse to issue a declaratory
ruling when:
(A) the petition does not comply with this subdivision;
(B) the Board has previously issued a declaratory ruling
on substantially similar facts;
(C) the Board has previously issued a final agency
decision in a contested case on substantially similar facts;
(D) the facts underlying the request for a declaratory
ruling were specifically considered at the time of the adoption of the rule in
question; or
(E) the subject matter of the request is involved in
pending litigation.
(c) Petitions For Rule‑Making. In addition to the
procedures set out in G.S. 150B-20, petitions for rule‑making shall be
submitted to the Board and shall contain:
(1) petitioner's name, address and telephone
number;
(2) a draft of the proposed rule or rule
change;
(3) the reason for its proposal;
(4) the effect of the proposal on existing
rules or decisions;
(5) data supporting the proposal;
(6) practices likely to be affected by the
proposal; and
(7) a list or description of persons likely to
be affected by the proposal.
History Note: Authority G.S. 85B‑3(f); 85B‑8;
150B‑4; 150B‑14(a)(1),(c); 150B‑18; 150B‑38(h);
Eff. November 1, 1984;
Amended Eff. July 1, 1995; January 1, 1995; April 1,
1989.
SECTION .0200 ‑ APPLICATION FOR LICENSE
21 NCAC 04B .0201 APPLICATION FORMS
(a) Auctioneer. Each applicant for an auctioneer license
shall complete an application form provided by the Board. This form shall be
submitted to the Executive Director and shall be accompanied by:
(1) one passport-type photograph for
identification;
(2) statements of the results of a local
criminal history records search by the clerk of superior court (or equivalent
official in other states) in each county where the applicant has resided and
maintained a business within the immediate preceding 60 months (five years);
(3) the completed fingerprint cards provided by
the Board and the form signed by the applicant consenting to the check of the
criminal history and to the use of fingerprints and other identifying information;
(4) a copy of the applicant's high school
diploma or proof of equivalency;
(5) the proper fees, as required by 21 NCAC 04B
.0202;
(6) documentation of required auctioneer
schooling or auctioneer experience, as follows:
(A) Applicants who base their application upon their
successful completion of an approved school of auctioneering shall submit a
photostatic copy of their diploma or certificate of successful completion. An
applicant shall have successfully completed this school within the five years
preceding the date of application or if the applicant has successfully
completed this school more than the five years preceding the date of his or her
application, shall submit documentation verifying the applicant's active lawful
participation in auctions within the two years preceding the date of
application. The above referenced participation in auctions is defined as
"Auctioneering" as set forth in G.S. 85B-1(8).
(B) Applicants who base their application upon their
successful completion of an apprenticeship shall submit a log which was
maintained and completed during the apprenticeship period which details the
exact hours and dates on which they obtained apprenticeship experience, with
each entry being verified and signed by their supervising auctioneer. A
minimum of 100 hours of experience during the apprenticeship two-year period
shall be obtained. Not less than 25 of the total hours accumulated must be
attributable to bid calling and not less than 50 hours shall be attributable to
working as a ring person, drafting and negotiating contracts, appraising
merchandise, advertising, clerking and cashiering, with not less than five
hours of accumulated experience documented for each category. An apprentice
who applies for an auctioneer license under this Part shall submit his
application and supporting documentation and obtain a passing score on the
auctioneer exam prior to the expiration of his apprentice auctioneer license;
and
(7) Non-resident applicants shall also submit a
properly completed "Designation of Agent for Service of Process Form"
with notarized signature and notarial seal affixed.
(b) Non-Resident Reciprocal Auctioneer. Each non-resident
applicant for auctioneer license, who applies for a North Carolina license
pursuant to G.S. 85B-5 shall complete an application form provided by the
Board. This form shall be submitted to the Executive Director and shall be
accompanied by:
(1) one passport-type photograph for
identification;
(2) statements of the results of a local
criminal history records search by the clerk of superior court (or equivalent
official) in each county where the applicant has resided and maintained a
business within the immediate preceding 60 months (five years);
(3) the completed fingerprint cards provided by
the Board and the form signed by the applicant consenting to the check of the
criminal history and to the use of fingerprints and other identifying information;
(4) a copy of the applicant's high school
diploma or proof of equivalency;
(5) the proper fees, as required by 21 NCAC 04B
.0202;
(6) a statement of good standing from the
licensing board or Commission of each jurisdiction where the applicant holds an
auctioneer, apprentice auctioneer or auction firm license; and
(7) a properly completed "Designation of
Agent for Service of Process Form" with notarized signature and notarial
seal affixed.
(c) Apprentice Auctioneer. Each applicant for an
apprentice auctioneer license shall complete an application form provided by
the Board. This form shall be submitted to the Executive Director and shall be
accompanied by:
(1) one passport-type photograph for
identification;
(2) statements of the results of a local
criminal history records search by the clerk of superior court (or equivalent
official) in each county where the applicant has resided and maintained a
business within the immediate preceding 60 months (five years);
(3) the completed fingerprint cards provided by
the Board and the form signed by the applicant consenting to the check of the
criminal history and to the use of fingerprints and other identifying information;
(4) a copy of the applicant's high school
diploma or proof of equivalency;
(5) the proper fees, as required by 21 NCAC 04B
.0202;
(6) the signature, as designated on the
applicant form, of the licensed auctioneer who will be supervising the
apprentice auctioneer;
(7) a written statement of the proposed
supervisor's background and experience in the auction profession to include the
number and types of auctions conducted or participated in annually; and
(8) if applicant is a non-resident, a properly
completed "Designation of Agent for Service of Process Form" with
notarized signature and notarial seal affixed.
(d) Auction Firms. An applicant for an auction firm shall
be a principal within the firm. Each applicant for an auction firm license
shall complete an application form provided by the Board. This form shall be
submitted to the Executive Director and shall be accompanied by:
(1) statements of the results of a local
criminal history records search by the clerk of superior court (or equivalent
official) in each county where any principal and designated person of the
auction firm has resided and maintained a business within the immediate
preceding 60 months (five years);
(2) each of the principal's and designated
person's of the auction firm completed fingerprint cards provided by the Board
and the form signed by each consenting to the check of the criminal history and
to the use of fingerprints and other identifying information;
(3) a copy of each principal's and designated
person's high school diploma or proof of equivalency;
(4) the proper fees, as required by 21 NCAC 04B
.0202;
(5) a certified copy of any applicable Articles
of Incorporation or Partnership Agreement;
(6) a statement of good standing from the
licensing board or Commission of each jurisdiction where the applicant firm and
any principal and designated person of such firm holds an auctioneer license of
any type; and
(7) if applicant firm is a non-resident, a
properly completed "Designation of Agent for Service of Process Form"
(one each for the auction firm and for each principal and designated person of
the firm) with notarized signature and notarial seal affixed and, if a
corporation, the corporate seal and corporate secretary's signature affixed.
History Note: Authority G.S. 85B-1; 85B-3.1; 85B-4(d);
85B-5; 85B-3.2;
Eff. November 1, 1984;
Amended Eff. April 1, 1996; January 1, 1995; June 1,
1991;
Temporary Amendment Eff. January 1, 2000;
Amended Eff. May 1, 2006; April 1, 2001.
21 NCAC 04B .0202 FILING AND FEES
(a) Properly completed applications must be filed
(received, not postmarked) in the Board office at least seven days prior to an
established Board meeting date, or in the case of an application for auctioneer
examination, at least 10 days prior to a scheduled examination and must be
accompanied by all required documents.
(b) License fees are as follows:
(1) New auctioneer license for an applicant who did not
serve an apprenticeship $250.00
This includes a $150.00 annual license
fee; $50.00 application fee; and
$50.00 examination fee.
(2) New auctioneer license for an apprentice auctioneer $200.00
This includes a $150.00 annual license
fee; and $50.00 examination fee.
(3) Renewal of auctioneer license $150.00
(4) New apprentice auctioneer license $150.00
This includes a $100.00 license fee and a
$50.00 application fee.
(5) Renewal of apprentice auctioneer license $100.00
(6) New auction firm license (no examination) $200.00
This includes a $150.00 annual license
fee; and $50.00 application fee.
(7) New auction firm license (examination) $250.00
This includes a $150.00 annual license
fee; $50.00 application fee;
and $50.00 examination fee.
(8) Renewal of an auction firm license $150.00
(9) Application and processing fee for conversion of
non-resident reciprocal license to $ 50.00
in-state license
(10) Reinstatement of lapsed license or late fee $
50.00
(11) Resident fingerprint card background check fee $
14.00
Applicants who have been continuous
residents of North Carolina for the five
years preceding the date of application
shall be required to have only a State
background check.
(12) Non-resident fingerprint card background check fee $
38.00
Applicants who have not been continuous
residents of North Carolina for the five
years preceding the date of application
shall be required to have both a State and
Federal background check.
(c) The renewal fee for a non-resident reciprocal licensee
under G.S. 85B-5 shall be calculated in the same manner as the initial
application fee pursuant to G.S. 85B-6.
(d) Fees may be paid in the form of a cashier's check,
certified check or money order made payable to the North Carolina Auctioneer
Licensing Board. Checks drawn on escrow or trust accounts shall not be
accepted. Personal checks may be accepted for payment of renewal fees.
History Note: Authority G.S. 85B-3.2; 85B-4.1; 85B-6;
Eff. November 1, 1984;
Amended Eff. April 1, 2001; January 1, 2000; April 1,
1996; January 1, 1995; April 1, 1989;
Temporary Amendment Eff. October 19, 2001;
Temporary Amendment Expired August 12, 2002;
Amended Eff. April 1, 2003.
SECTION .0300 ‑ EXAMINATIONS
21 NCAC 04B .0301 SUBJECT MATTER
(a) The auctioneer license examination shall test the
applicant's knowledge of the following required subjects:
(1) a practical and working knowledge of the
auction business including fundamentals of auctioneering, contract drafting,
bid calling, basic mathematical computations and percentages, advertising,
settlement statements, and laws, regulations, and rules that relate to the
auctioneering profession;
(2) the provisions of the licensing law; and
(3) the Rules of the Board.
(b) The auction firm license examinations shall test the
applicants knowledge of the following;
(1) the provisions of the licensing law; and
(2) the Rules of the Board.
History Note: Authority G.S. 85B-4(d)(g);
Eff. November 1, 1984;
Amended Eff. May 1, 2006; January 1, 1995.
21 ncac 04b .0302 RE-EXAMINATION/REFUND OF FEES
If the applicant does not appear at the initial examination
for which he has been scheduled or fails to pass such examination, he will be
re-scheduled for the next scheduled examination. If the applicant again does
not appear or fails to pass this examination, a refund of the annual auctioneer
or apprentice license fee will be made. No refund of the application or
examination fee is allowed. A complete new application and proper fees are
required if the person wishes to reapply.
History Note: Authority G.S. 85B-4; 85B-6;
Eff. November 1, 1984;
Amended Eff. June 1, 1991;
Temporary Amendment Eff. January 1, 2000;
Amended Eff. April 1, 2001.
21 NCAC 04B .0303 EXAM: REVIEW: PAPERS AND CONTENTS
(a) Any applicant who fails to obtain a
passing score (75 percent or better) on an examination may request and receive
an appointment with the Executive Director to review their examination.
(b) All examination papers shall remain the
property of the Board. The contents thereof shall not be divulged, except by
express written authorization of the Board.
History Note: Authority G.S. 85B‑4;
Eff. November 1, 1984;
Amended Eff. June 1, 1991.
SECTION .0400 – LICENSING
21 NCAC 04B .0401 LICENSE NUMBER: DISPLAY OF LICENSE AND
POCKET CARD
(a) When being licensed each individual or firm shall be
issued a license number which remains solely his. Should that number be
retired for any reason (such as death, failure to continue in the auction
business, failure to renew his license, or any other reason) that number shall
not be reissued back to the individual or the firm or to any other individual
or firm.
(b) A pocket card shall be issued by the Executive Director
giving the auctioneer, apprentice auctioneer or auction firm's name, license
number and date of expiration. The pocket card must be carried by the
licensee, and in the case of auction firms each of the designated person(s), at
all times when auctioneering activities are being conducted and shall be
available for inspection by the Executive Director or designated agent of the
Board. An auction firm shall display its license in a prominent place upon its
premises, so as to be visible for inspection by patrons of the firm.
History Note: Authority G.S. 85B-3.1; 85B-4;
Eff. November 1, 1984;
Amended Eff. May 1, 2006; April 1, 2001; January 1, 1995;
April 1, 1989.
21 NCAC 04B .0402 LICENSE RENEWAL
(a) Any licensee desiring the renewal of a license which is
in good standing shall apply for same and shall submit the required fees and
such records or documentation requested by the Executive Director to verify the
licensee's compliance with G.S. 85B and the rules promulgated in this Chapter.
All licenses expire on June 30 each year.
(b) Applications for renewal of licenses will only be
processed by the Board upon receipt of the required fee and any records, documents,
or information, requested pursuant to Paragraph (a) of this Rule.
(c) Any person or entity who engages in any auctioneering
activities governed by the auctioneers law while the license is lapsed will be
subject to the penalties pursuant to G.S. 85B-9.
(d) Licenses lapsed or suspended in excess of 24 months
shall not be renewable. Persons or firms whose license has been lapsed or
suspended in excess of 24 months and who desire to be licensed shall apply for
a new license and shall meet all the requirements then existing. Persons or
firms whose license has been lapsed or suspended in excess of 24 months and who
desire to be licensed are exempt from the auctioneer school or the
apprenticeship requirements should the continuing education requirements be met
for all lapsed, suspended and inactive years.
History Note: Authority G.S. 85B-3.1; 85B-4;
Eff. November 1, 1984;
Amended Eff. April 1, 2001; January 1, 1995; April 1,
1989.
21 ncac 04b .0403 APPRENTICE AUCTIONEER LICENSE
(a) An apprentice auctioneer's license is valid only while
he is associated with and supervised by a licensed auctioneer assigned by the
Board. In order to be assigned by the Board as a supervisor, the Board must
receive a written notice, signed by the prospective supervisor and the
apprentice, requesting that the licensed auctioneer be assigned as a supervisor
for the apprentice. Upon receipt of such a request, the Board shall evaluate
the requested assignment and such requested assignment may be denied by the
Board if the prospective supervisor fails to possess a minimum of five years of
active experience in the auctioneering profession or an equivalent combination
of training and experience or has committed any act which constitutes grounds
for license suspension or revocation under the rules of this Subchapter or
under G.S. 85B. Upon termination of the association between the supervisor and
the apprentice, the supervisor shall immediately notify the Board in writing,
showing the date and cause of termination.
(b) The supervising auctioneer shall be on the premises of
the sale location and supervise the apprentice auctioneer at any and all times
that an apprentice auctioneer is engaged in bid calling. Additionally, the
supervising auctioneer shall supervise the apprentice on a regular basis and
ensure that the apprentice auctioneer conforms with the auctioneer law and
Rules adopted by the Board.
(c) Any licensed auctioneer who undertakes the sponsorship
of an apprentice auctioneer shall ensure that the apprentice receives training,
supervision, and guidance in the following:
(1) A practical and working knowledge of the
auction business including fundamentals of auctioneering, contract drafting,
bid calling, basic mathematical computations, advertising, and settlement
statements;
(2) The provisions of the licensing law;
(3) The Rules of the Board; and
(4) The preparation and maintenance of written
agreements, record books, and other sales records as required by law.
(d) Apprentices are prohibited from conducting or
contracting to conduct any auction without the prior express written consent of
the sponsor. No sponsor shall authorize an apprentice to conduct or contract
to conduct an auction, to act as principal auctioneer or handle any funds
related to an auction unless the sponsor has determined that the apprentice has
received adequate training to do so. An apprentice auctioneer may work under
more than one Board approved licensed auctioneer at any given time.
(e) The sponsor shall ensure that the apprentice complies
with all of the laws and Rules as they apply to any auction related transaction
approved by the sponsor.
(f) An apprentice auctioneer shall notify the Board, in
writing, immediately upon termination of his association with his supervising
auctioneer, at which time his license shall be immediately held in an invalid
status. If an apprentice auctioneer's supervising auctioneer's license has
been suspended, revoked, or placed on probation the apprentice auctioneer's
license shall be immediately held in an invalid status. Once in an invalid
status, an apprentice auctioneer shall not conduct or contract to conduct any
auction. If an apprentice's license is invalid greater than 90 days due to a
lack of an approved sponsor, the apprentice upon securing an approved sponsor
shall be required to submit a late fee set forth in 21 NCAC 04B .0202(b)(10).
History Note: Authority G.S. 85B-3.1; 85B-4;
Eff. November 1, 1984;
Amended Eff. April 1, 2001; April 1, 1996; January 1,
1995; June 1, 1991.
21 ncac 04b .0404 GROUNDS FOR LICENSE DENIAL OR
DISCIPLINE
(a) The Board may assess a civil penalty in accordance with
G.S. 85B-3.1(b) or deny, suspend, or revoke a license, or issue a letter of
reprimand to a licensee, upon any of the following grounds:
(1) violation of any provision of G.S. 85B;
(2) violation of any provision of the rules
under 21 NCAC, 04B;
(3) a check given to the Board in payment of
required fees which is returned unpaid;
(4) allowing an unlicensed person (auctioneer)
to call a bid at a sale;
(5) auctioneering at an unlicensed auction firm
sale;
(6) failure to properly, completely and fully
complete an application or making any false statement or giving any false
information in connection with an application for a license, renewal or reinstatement
of a license including:
(A) failure to completely cooperate with any
investigation; or
(B) making any false statement or giving any false
information in connection with any investigation by the Board or the Board's
designee;
(7) being adjudicated mentally incompetent by a
court;
(8) committing a crime the circumstances of
which substantially relate to the auctioneering profession;
(9) violating any federal or state statute or
rule which relates to the auctioneering profession;
(10) practicing the profession for which the
holder has a license while the holder's ability to practice was impaired by
alcohol or other drugs or physical or mental disability or disease;
(11) being incompetent in practice. A licensee
has been incompetent in practice if the licensee engaged in conduct which
evidences a lack of ability, fitness or knowledge to apply principles or skills
of the auctioneering profession;
(12) engaging in unprofessional conduct. In this
Paragraph "unprofessional conduct" means the violation of any
standard of professional behavior which through professional experience has
become established in the auctioneering profession;
(13) obtaining or attempting to obtain
compensation by fraud or deceit;
(14) violating any order of the Auctioneer Licensing
Board requiring a licensee to comply with any provision of the Board’s law or
administrative rules;
(15) failure to possess truth, honesty and
integrity sufficient to be entitled to the high regard and confidence of the
public. In this paragraph a lack of truth, honesty and integrity shall be
evidenced by proof that the applicant or licensee is in violation of other
provisions of the Board’s law and administrative rules which demonstrate that
the applicant or licensee fails to meet this standard; or
(16) failure to properly make the disclosures
required by 21 NCAC 04B .0405.
(b) When applying the requirements of Rule .0404(a) to
auction firms or their applications, the requirements shall apply to the firm,
all the principals, and all of the designated persons of the firm.
History Note: Authority G.S. 85B-3.1; 85B-8(a)(1);
Eff. November 1, 1984;
Amended Eff. January 1, 1995;
Temporary Amendment Eff. January 1, 2000;
Amended Eff. April 1, 2001.
21 NCAC 04B .0405 INVOLVEMENT IN COURT ACTION OR
ADMINISTRATIVE HEARING
(a) All auctioneers, apprentice auctioneers and auction
firms, including their principals and designated person(s), shall report to the
Board any and all criminal arrests for, charges of or convictions of a
misdemeanor that has as an essential element dishonesty, deceit, fraud or
misrepresentations, or any arrests, charges or convictions of any felony.
Convictions include findings of guilt, guilty pleas, and pleas of nolo contendere.
The Board must receive written notice of any such arrest, charge or criminal
conviction within 30 days of the occurrence of any or all of these events.
(b) All auctioneers, apprentice auctioneers and auction
firms, including their principals and designated person(s), shall report to the
Board any and all civil suits involving them that are based upon any allegation
of gross negligence, dishonesty, fraud, misrepresentation or incompetency, or
that in any way involve an auction sale or a transaction related to an auction
matter or auctioneering. The Board must receive written notice of any such
civil suit within 30 days of the date the complaint in the suit is served on
the defendant in the action, or the date a pleading containing one or more of these
allegations is served on a party.
(c) All auctioneers, apprentice auctioneers and auction
firms, including their principals and designated person(s), shall report to the
Board any and all administrative proceedings which are commenced against them
which involve any potential revocation or suspension of, or other disciplinary
action against, any auction license or auctioneer license that they hold in
another state. The Board must receive written notice of any such
administrative proceeding within 30 days of the date the auctioneer, apprentice
auctioneer or auction firm, including its principals and designated person(s),
is notified of the administrative proceeding.
History Note: Authority G.S. 85B-3.1; 85B-4;
Eff. November 1, 1984;
Amended Eff. April 1, 2001; January 1, 1995; April 1,
1989.
SECTION .0500 ‑ SCHOOLS OF AUCTIONEERING
21 NCAC 04B .0501 APPLICATION FOR COURSE APPROVAL
(a) Schools of auctioneering seeking accreditation by the
Board shall complete a Board approved application form.
(b) The school shall notify the Board within 30 days of any
change in the information required by the above application form. This
requirement shall continue as long as the school remains approved by the Board.
History Note: Authority G.S. 85B-3.1; 85B-4(d);
Eff. November 1, 1984;
Amended Eff. April 1, 2001; March 1, 1995.
21 NCAC 04B .0502 REQUIREMENTS FOR APPROVAL/MINIMUM
STANDARDS
(a) In order to be accepted as an approved school, and in
order to remain approved, the course curriculum must contain classroom
instruction in the following subjects for the minimum number of hours shown:
(1) Essential Core Curriculum (minimum 50
hours);
16 Hours - Bid
Calling, Voice Control, Proper Breathing Techniques,
and Use and
Sequence of Numbers;
4 Hours - Advertising;
8 Hours - Auctioneers
Law and Rules and Regulations;
2 Hours - Uniform
Commercial Code and Bulk Transfers;
2 Hours - Drafting
and Negotiating Contracts;
2 Hours - Closing
Statements and Settlements;
8 Hours - Accounting
and Mathematics;
1 Hour - Auctioneering
Ethics;
2 Hours - Handling Sale Proceeds and Escrow Accounts;
2 Hours - Auction
Preparation and Setup;
3 Hours - Review
and Testing (End of Course).
(2) Supplemental Instruction Areas (minimum 30
hours):
Antiques Heavy
Equipment
Real Estate Automobiles
Technology Cattle
and Livestock
Environmental Issues Public
Speaking
Computers Estate
Sales
Firearms Appraising
Foreclosure and Bankruptcy Sales Sales
Tax Requirements
Art, Rugs, Jewelry Hygiene
and Personal Appearance
Body Language Ring
Work
Farm Machinery Consignment
Auctions
Minimum hours are not required in
individual supplemental subjects, however, all topics must be addressed in the
school.
(3) Courses that include students that will
become North Carolina applicants must provide a minimum of 2 hours of
instruction on the North Carolina Auctioneers Law and Rules, G.S. 85B and 21
NCAC 04B. This instruction shall be included within the minimum required 8
hours instruction of Auctioneers Law and Rules and Regulations.
(b) Students attending an approved course must attend and
successfully complete a minimum of 80 hours of classroom instruction according
to the list of subjects and minimum hours of instruction in each subject
specified in Paragraph (a) of this Rule. An hour of creditable instruction is
defined as 50 minutes of classroom instruction or practical exercise
accompanied by a 10 minute break.
(c) Each course offered must include instruction by a
minimum of five different instructors, at least two of whom must be
professional auctioneers. Regardless of the total number of hours taught by
any given instructor, no more than 20 hours of an individual's instruction may
be counted to satisfy the requirements of Paragraph (a) of this Rule.
(d) The school shall establish standards for all persons
who instruct in an approved school with minimum training or experience, or a
combination thereof, in the particular field in which they are instructing.
(e) The school shall provide or make available suitable
facilities, equipment, materials and supplies necessary for the course,
specifically including:
(1) a comfortable, well-lighted and ventilated
classroom with a seating capacity sufficient to accommodate all students; and
(2) audio-visual equipment and other
instructional devices and aids necessary and beneficial to the delivery of
effective training.
History Note: Authority G.S. 85B-3.1; 85B-4(d);
Eff. November 1, 1984;
Amended Eff. May 1, 2006; April 1, 2001; March 1, 1995.
21 NCAC 04B .0503 CERTIFICATION OF COURSE COMPLETION
Schools shall
furnish each student who successfully completes their course an official
certification of graduation or diploma containing the student's name, the date
the course was completed and the total number of hours attended and
successfully completed by that student. For successful completion of a course,
students must successfully complete a written final examination administered by
the school.
History Note: Authority G.S. 85B‑3(f); 85B‑4(d);
Eff. November 1, 1984.
21 NCAC 04B .0504 RECORDS MUST BE MAINTAINED
Each school
shall maintain, and make available upon request of the Board, or its designee,
records containing the following information:
(1) dates,
times of instruction, and location of every course offered;
(2) names
and addresses, number of hours attended and successfully completed, and grade
on the final written examination of each student;
(3) a list
of all instructors used by the school, the qualifications of each, and their
addresses;
(4) for each
course offered, the names of all instructors used, the subject(s) taught, the
number of hours that each instructor devoted to each subject, and the dates and
times of such instruction.
History Note: Authority G.S. 85B‑3(f); 85B‑4(d);
Eff. November 1, 1984.
21 NCAC 04B .0505 GROUNDS FOR APPROVAL: SUSPENSION OR
REVOCATION
(a) The
approval of a school by the Board shall be valid for a period of two years.
Each approved school shall be evaluated for reapproval prior to the expiration
of the two year period.
(b) The Board
may deny, suspend or revoke the approval of any school when it finds that the
school has failed to meet or to continuously maintain any requirement, standard
or procedure of this Section. Additionally, the Board may deny, suspend or
revoke the approval of any school upon a finding that any information required
under this Section was knowingly falsified or misrepresented.
History Note: Authority G.S. 85B‑3(f); 85B‑4(d);
Eff. November 1, 1984;
Amended Eff. April 1, 1996.
21 NCAC 04B .0506 ALLOWING UNLICENSED BID CALLERS:
EXCEPTION
The only
exception to allowing an unlicensed bid caller in the State of North Carolina
will be in the case of a person enrolled in a class at an approved school of
auctioneering who, for the purpose of training and receiving instruction, may
do so under the direct supervision of a licensed auctioneer who is also an
instructor in the school and who further assumes full and complete
responsibility for the activities of the student in the matter involving bid
calling.
History Note: Authority G.S. 85B‑3(f); 85B‑4(d);
Eff. November 1, 1984.
SECTION .0600 ‑ GENERAL AUCTIONEERING
21 NCAC 04B .0601 CHANGE OF ADDRESS OR BUSINESS NAME OR
OWNERSHIP
(a) All licensees shall notify the Board in writing of each
change or addition of residence or business address (including mailing address)
and change of trade name, assumed name, or combination of names under which the
licensee conducts business related to auctions.
(b) In the case of a corporate license, said licensee shall
immediately notify the Executive Director of any change in the directors or
officers of the corporation and such new director(s) or officer(s) shall comply
with the provisions of 21 NCAC 04B .0201(d)(1), (2), (3), (5), (6) and (7). If
the new directors or officers have a 51% or greater controlling interest in the
corporation, the firm license shall be retired and the firm shall apply for a
new license.
(c) In the case of a partnership license, said licensee
shall immediately notify the Executive Director of any change in partners and
such new partners shall comply with the provisions of 21 NCAC 04B .0201(d)(1),
(2), (3), (5), (6) and (7).
(d) In the case of an auction firm license, the licensee
shall immediately notify the Executive Director of any change in a designated
person(s). If the designated person is a currently licensed auctioneer under
G.S 85B, the designated person shall be required to comply with the provisions
of 21 NCAC 04B .0201(d)(1), (6) and (7). If the designated person is not a
currently licensed auctioneer under G.S. 85B, the designated person shall be required
to comply with the provisions of 21 NCAC 04B .0201(d)(1), (2), (3), (6) and
(7).
(e) Any change in address, business name or ownership
required by these Rules shall be reported within 10 days of the occurrence of
such change.
History Note: Authority G.S. 85B-3.1;
Eff. November 1, 1984;
Amended Eff. April 1, 1996; January 1, 1995;
Temporary Amendment Eff. January 1, 2000;
Amended Eff. April 1, 2001.
21 NCAC 04B .0602 ADVERTISING
(a) In all advertisements relating to an auction, the
auctioneer's, apprentice auctioneer's or auction firm's name and license number
shall be conspicuously given. If an auctioneer is working for or in
conjunction with an auction firm, such relationships shall be disclosed and
both license numbers shall be conspicuously given. A general advertisement
which does not concern a specific sale(s) and which does not list sale dates,
times or locations, generally referred to as trolling or holding advertisements,
shall not be subject to any identification requirement. A licensee may
advertise under a name, assumed name, trade name, or combination of names, only
if written notice has been previously filed with the Board.
(b) Any licensee who advertises an "Estate Sale"
shall specifically disclose, in all advertisement materials, whether it is the
estate of a living or deceased person. Before conducting an auction as an
"estate sale," the majority of items in the sale shall come from the
estate of the living or deceased person(s). Other items not related to or in
an estate may be sold with an estate if specifically disclosed at or before the
time of the auction.
(c) It shall be a violation of these Rules to advertise a
"Bankruptcy Sale" unless the item(s) offered for sale, whether real
or personal, are from an active bankruptcy action. Before conducting an
auction as a "bankruptcy sale," the majority of the items in the sale
shall come from the bankruptcy of one or more parties. Other items not related
to or from a bankruptcy action may be sold with items from a bankruptcy action
if specifically disclosed at or before the time of the auction.
(d) It shall be a violation of these Rules to advertise an
item, either real or personal, as "Absolute" or "Without Reserve"
if the item is subject to confirmation, minimum bid, or any other condition of
sale. Before advertising an auction as absolute or without reserve, the
majority of items in the sale shall be offered for sale absolute or without
reserve. Items that are not absolute may be included in the auction provided
they are specifically designated as such in all announcements or
advertisements.
(e) It shall be a violation of these Rules to advertise any
auction using such descriptive words as "Urgent," "Emergency,"
"Distress" or any other word which connotates liquidation of assets
or that the buyers will, for some extraordinary reason, be in a position to
reap some unusual bargain without specifically disclosing, in the written
advertisement in a print size equal to the descriptive word, the reason that
the sale is "urgent," the nature of the "emergency" or the
cause of the "distress," etc.
(f) It shall be a violation of these Rules to advertise any
auction using such descriptive words as "Seized," "Confiscated,"
"Forfeited" or any other word which connotes a governmental action
whereby items are seized or taken by a government department, agency or
commission and released or sold or that the buyers will, for some governmental
reason, be in a position to reap some unusual bargain without specifically
disclosing, in the written advertisement in a print size equal to the
descriptive word, the exact nature of the government action.
(g) It shall be a violation of these Rules to advertise any
items as being from an "estate" or a "bankruptcy," or from
an "urgent," "emergency," "distress,"
"seized," "confiscated," "forfeited" or similar
sale, unless the consignor of the item(s) to be sold is the original owner of
the item(s), the designated representative of the owner, or a federal, state or
local department, agency or commission charged with disposing of the item(s),
and consigned the item(s) directly to the advertised sale.
(h) It shall be a violation of these Rules to:
(1) Reference the U.C.C. or any other uniform act
or federal or state law in any advertisement unless such act or law is
required, by law, to be referenced;
(2) Reference or mention any federal, state or
local department, agency or commission in any advertisement unless specifically
required by law to do so or unless prior written approval is received from such
department, agency or commission; or
(3) Otherwise connote in any advertisement that
the auction is under the auspices of, at the direction of or required by
federal or state law or act or a federal, state or local agency or commission
and that the buyers will, for some legal or governmental reason, be in a
position to reap some unusual bargain.
(i) It shall be a violation of these Rules to advertise for
sale items which the auctioneer/firm does not intend to offer for sale at the
advertised auction.
(j) It shall be a violation of these Rules for an
auctioneer or auction firm to permit its name or license number to appear on
any advertisement for an auction without reviewing the contents of the advertisement
prior to its publication to ascertain its compliance with applicable law and
Rules.
(k) It shall be a violation of these Rules to advertise any
auction using such descriptive words as "Contents,"
"Stock," "Inventory," "Liquidation" or any other
word which connotes that the items to be auctioned are present on the premises
of a residence, business, building or establishment unless the items were
physically present continuously for 30 days prior to the signing of the
contract or written agreement. Before conducting an auction using any of the
descriptive words, the majority of the items in the sale shall be from the
premises. Other items not related to or from the contents of the residence or
business may be included in the auction provided they are specifically
designated as such in all advertisements previous to the sale. The 30 day
requirement shall not apply to items used in direct conjunction with the
residence or business and brought to the site solely for the purpose of sale at
auction.
(l) At all auctions that include a buyer's premium, the
amount of the buyer's premium shall be announced at the beginning of the
auction and a written notice of this information shall be conspicuously
displayed or distributed to the public at the auction site.
History Note: Authority G.S. 85B-1; 85B-3.1;
85B-8(a)(4);
Eff. November 1, 1984;
Amended Eff. May 1, 2006; April 1, 2001; April 1, 1996;
January 1, 1995; June 1, 1991.
21 NCAC 04B .0603 SALE PROCEEDS, ACCOUNTING AND ESCROW
ACCOUNTS
(a) Each payment made payable to the auctioneer/firm in
which any portion belongs to others, and which are not disbursed to the seller
on auction day, must be deposited in an escrow account for the benefit of the
owner or seller of such property within three business days after receipt of
same.
(b) Any licensee who disburses any funds on auction day
shall prepare a receipt or settlement statement in compliance with G.S.
85B-7.1(a) and maintain records in compliance with G.S. 85B-7.1(b).
(c) Every auctioneer/firm that does not disburse all funds
to the seller on auction day shall establish and maintain a separate bank
account designated as "Custodial Account for Sellers Proceeds" or
some similar identifying designation, to disclose that the depositor is acting
as a fiduciary and that the funds in the account are trust funds.
(d) Such custodial accounts for sellers proceeds must be
established and maintained in banks or savings and loan associations located in
the State of North Carolina whose deposits are insured by the Federal Deposit
Insurance Corporation, or comparable state recognized insurance agency or
program.
(e) The Custodial Account for Sellers shall be drawn on
only for payment of:
(1) the net proceeds to the seller, or to any
person that the auctioneer/firm knows is entitled to payment;
(2) to pay lawful charges against the property
which the auctioneer/firm shall in its capacity as agent, be required to pay;
and
(3) to obtain any sums due the auctioneer/firm
as compensation for its services.
(f) In the event of a dispute between the seller and buyer
of goods or property or between the licensee and any person in whose name trust
or escrow funds are held, the licensee shall retain said monies in his trust or
escrow account until he has obtained a written release from the parties
consenting to its disposition or until disbursement is ordered by a court of
competent jurisdiction.
(g) Each auctioneer/firm shall keep such accounts and records
as will disclose at all times the handling of funds in such Custodial Accounts
for Sellers Proceeds. Accounts and records must at all times disclose the
names of buyers and the amount of purchase and payment from each, also, the
names of the sellers and the amount due and payable to each from funds in the
Custodial Account for Sellers Proceeds. The names of the buyers and amount of
purchase and payment from each related to an individual seller shall be
delivered to the seller within 14 days of a written request made within 90 days
of settlement of a specific auction.
(h) All trust or escrow account records and records of
disbursement shall be available for inspection by the Commission or its
designated agent, without advance notice, and copies shall be provided to the
Commission upon request.
History Note: Authority G.S. 85B-3(f); 85B-7.1;
85B-8(a);
Eff. June 1, 1991;
Amended Eff. April 1, 2003; January 1, 1995.
21 NCAC 04B .0604 CONTRACTS, CONSIGNMENT RECORDS, SALES
RECORDS, AND BIDDER REGISTRATION RECORDS
(a) All written agreements for auctions and registration,
sales and accounting records shall be maintained at the site during the conduct
of the auction and, upon request, shall be made available to the Commission or
its designated agent.
(b) An auction house, auction barn, or auction gallery
business may enter into a written agreement with regular dealers or sellers for
an extended period of time, not to exceed one year.
(c) The consignment records shall be kept by the licensee
for a period of two years from the date of the auction.
(d) At an auction house, auction barn, or auction gallery,
when consignments are brought to the location by the public during that
specific auction sale, the sales records and the consignment records may be the
same.
(e) The sales records shall be kept by the licensee for a
period of two years from the date of the auction.
(f) The bidder registration records shall contain the bidders'
names, addresses, telephone numbers, and when possible e-mail addresses. The
bidder registration records shall be kept by the licensee for a period of two
years from the date of the auction.
(g) All required records shall be open for inspection by
the Commission or its designated agent at reasonable times, or copies of the
same shall be provided to the Commission or its designated agent upon written
request.
History Note: Authority G.S. 85B-1; 85B-7;
Eff. January 1, 1995;
Amended Eff. May 1, 2006.
21 NCAC 04B .0605 BIDDING
(a) No auctioneer/auction firm shall bid on items in a sale
he is conducting or procure such a bid without the intent to purchase the
item. However, in a sale with reserve, the auctioneer/auction firm may bid on
the reserve item up to, and including, the amount of the reserve price without
the intent to purchase the item. In any auction where the auctioneer/auction
firm bids or such auctioneer/auction firm procures such a bid, the auctioneer
shall announce such bidding in advance of the auction.
(b) A minimum opening bid shall not be required in an
absolute auction. Following an opening bid, the auctioneer may set reasonable
minimum bid increments. Such a policy shall be stated and, if possible, posted
or included in the auctioneer's/auction firm's written terms and conditions of
the sale. In this Paragraph "reasonable minimum bid increments" are
determined by the type and value of the property being offered at an auction.
History Note: Authority G.S. 25-2-328(4); 85B-1; 85B-3.1;
Eff. January 1, 1995;
Amended Eff. May 1, 2006; April 1, 2001.
21 NCAC 04B .0606 AUCTION FIRMS
(a) All licensed auction firms shall have at least one
Board approved designated person. If a licensed auction firm does not have at
least one designated person in good standing, the status of the auction firm
license shall be changed to invalid.
(b) Only designated person(s) for an auction firm have the
authority to transact business under the firm license. This includes
arranging, managing, soliciting, and contracting auctions; the supervision of
the auction staff; the supervision of the acceptance of consignments of items
for sale at auction; the supervision of the advertising of an auction; and the
supervision of the acceptance of payment and disbursement of monies for items
sold at auction.
(c) At least one designated person shall be on the premises
of an auction firm's auction sale location while the auction sale is conducted.
(d) Any auctioneer licensed under G.S. 85B may call bids
for a licensed auction firm without being a designated person.
(e) Any apprentice auctioneer licensed under G.S. 85B and
supervised by the sponsor auctioneer may call bids for a licensed auction firm
without being a designated person.
(f) Individuals that hold a currently valid real estate
broker license are exempt from the auction firm examination if their authority
to transact business under the auction firm license is only related to real
estate sales at auction.
History Note: Authority G.S. 85B-1; 85B-3.1; 85B-4;
Eff. May 1, 2006.
21 NCAC 04B .0607 NON-AUCTION FIRM BUSINESSES
(a) A licensed auctioneer who owns and operates a
non-auction firm business has the sole responsibility for arranging, managing,
soliciting, and contracting auctions; the supervision of the auction staff; the
supervision of the acceptance of consignments of items for sale at auction; the
supervision of the advertising of an auction; and the supervision of the
acceptance of payment and disbursement of monies for items sold at auction.
(b) A licensed auctioneer or an apprentice auctioneer who
is employed or contracted by another licensed auctioneer who owns and operates
a non-auction firm business shall only be responsible for calling bids and
performing duties that a non-auctioneer is allowed to perform.
(c) A licensed auctioneer who owns and operates a
non-auction firm business shall be on the premises of his businesses' auction
sale location while the auction sale is conducted.
History Note: Authority G.S. 85B-1; 85B-3.1;
Eff. May 1, 2006.
SECTION .0700 ‑ RECOVERY FUND
21 NCAC 04B .0701 APPLICATIONS
All verified applications will be served upon the Commission
in accordance with the procedures set forth in G.S. 1A-1, Rule 4(J).
History Note: Authority G.S. 85B‑4.2;
Eff. January 1, 1995.
SECTION .0800 - CONTINUING EDUCATION
21 NCAC 04B .0801 CONTINUING EDUCATION COURSE
(a) To renew a license on active status, an auctioneer,
apprentice auctioneer, or designated person(s) in an auction firm shall
complete a Board approved course(s) consisting of the hours of instruction as
established as in Paragraph (d) of this Rule and shall provide documentation of
completion of the above Board approved course(s) within one year preceding
license expiration.
(1) "Within one year preceding license expiration
time period" shall be defined as from May 16 to the following May 15 in
the year that the license expires.
(2) An auctioneer, apprentice auctioneer, or
designated person(s) in an auction firm shall provide documentation on required
continuing education courses to the Board by the May 15 deadline of the current
renewal period.
(3) If the required documentation is not
received by the Board by the deadline as set forth in Subparagraph (a)(2) of
this Rule, the licensee shall be assessed a late fee as set forth in Rule
.0202(b)(10) of this Subchapter.
(4) The renewal shall not be processed until
compliance is achieved and the required fees are received as set forth in Rule
.0402(b) of this Subchapter.
(b) The Board shall approve courses that shall be conducted
by sponsors approved by the Board under this Section. The subject matter of
this course shall be determined by the course sponsor subject to Paragraph (h)
of this Rule. The course sponsor shall produce or acquire instructor and
student materials. The course must be conducted as prescribed by the rules in
this Section. At the beginning of the course, sponsors must provide licensees
participating in their classes a copy of the student materials developed or
acquired by the sponsor.
(c) The sponsor may conduct the course at any location as
frequently as is desired during the approval period. Approval of a sponsor to
conduct a course authorizes the sponsor to conduct the course using an
instructor who has been approved by the Board as a course instructor under Rule
.0804 of this Section.
(d) The minimum classroom hours of instruction for each
year shall be six unless the Board establishes at its April monthly Board
meeting fewer hours for the upcoming year pursuant to G.S. 85B-4(e1). In
determining whether fewer hours may be established, the Board shall analyze the
disciplinary actions and complaints against its licensees and base its decision
on whether the analysis shows that a reduction in hours is justified.
(e) An auctioneer, an apprentice auctioneer, or a
designated person(s) in an auction firm shall complete the continuing education
requirements for each renewal period that their license was lapsed or
suspended.
(f) Credit hours applied to the current renewal of a
license shall not be used for future renewals.
(g) Excess continuing education hours may be carried
forward as credits for a maximum of one renewal year.
(h) The Board may mandate the topic(s) for all or part of
an approved course as a continuing education requirement pursuant to G.S.
85B-4(e1). In determining whether to mandate the topic for all or part of an
approved course as a continuing education requirement, the Board shall analyze
the disciplinary actions and complaints against its licensees and base its
decision on whether the analysis shows that mandating the topic for all or part
of a course is justified.
(i) No part of any prelicensing course curriculum shall
count as continuing education credit hours.
(j) Continuing education shall not be required until the
second renewal after initial licensing pursuant to G.S. 85B-4(e).
History Note: Authority G.S. 85B-4.(e1);
Eff. July 1, 1999;
Amended Eff. April 1, 2001; January 1, 2000;
Temporary Amendment Eff. October 12, 2001;
Temporary Amendment Expired July 29, 2002;
Amended Eff. April 1, 2003.
21 NCAC 04B .0802 APPLICATION FOR ORIGINAL APPROVAL
(a) An entity seeking original approval to sponsor a course
must make application on a form prescribed by the Board. An applying entity
that is not a resident of North Carolina shall also file with the application a
consent to service of process and pleadings.
(b) Approval to sponsor a course shall be granted to an
applicant upon showing to the satisfaction of the Board that:
(1) The applicant has submitted all information
required by the Board;
(2) The applicant satisfies all of the
requirements of Rule .0805 of this Section relating to qualifications or
eligibility of course sponsors;
(3) The applicant required by Rule .0805(e)
must be truthful, honest and of high integrity as referenced in 21 NCAC 04B
.0404(a)(15). In this regard, the Board may consider the reputation and
character of any owner, officer or director of any corporation, association or
organization applying for sponsor approval; and
(4) The applicant has at least one proposed
instructor who has been approved by the Board as a course instructor under Rule
.0804 of this Section.
History Note: Authority G.S. 85B-4(e1);
Eff. July 1, 1999;
Amended Eff. April 1, 2001; January 1, 2000;
Temporary Amendment Eff. October 12, 2001;
Temporary Amendment Expired July 29, 2002;
Amended Eff. April 1, 2003.
21 NCAC 04B .0803 STUDENT FEE FOR COURSES
Sponsors of a course may establish the amount of the fee to
be charged to students taking this course; provided, however, that the
established fee must be an all-inclusive fee and no separate or additional fee
may be charged to students for providing course materials, providing course
completion certificates, reporting course completion to the Board, or for
recouping similar routine administrative expenses.
History Note: Authority G.S. 85B-4(e1);
Temporary Adoption Eff. January 1, 2000;
Eff. April 1, 2001.
21 NCAC 04B .0804 APPROVAL OF CONTINUING EDUCATION
INSTRUCTORS
(a) Approval of course instructors shall be accomplished at
the time of the approval of the course sponsor. Approval of a course
instructor authorizes the instructor to teach the course only for the approved
course sponsor. An approved course instructor may not independently conduct a
course unless the instructor has also obtained approval as a course sponsor.
(b) An entity seeking original approval as a course sponsor
must provide the name, address, and qualifications of the instructors for the
course on the application form prescribed by the Board. No additional
application fee is required. All required information regarding the
instructor's qualifications must be submitted.
(c) The instructor(s) must be truthful, honest and of high
integrity as referenced in 21 NCAC 04B .0404(a)(15).
(d) The instructor(s) must be qualified under one or more
of the following standards:
(1) Possession of a baccalaureate or higher
degree with a major in the field of marketing, finance, or business
administration;
(2) Possession of a current North Carolina
auctioneer or auction firm license, three years active full-time experience in
auctioneering within the previous 10 years, and 30 classroom hours of auction
education, excluding prelicensing education, within the past three years, such
education covering topics which are acceptable under Board rules for continuing
education credit;
(3) Possession of a current North Carolina real
estate broker license, three years active full-time experience in the real
estate business within the previous 10 years, and experience teaching real
estate prelicensing and continuing education courses;
(4) Possession of a license to practice law in
North Carolina and three years experience in law practice within the previous
10 years; or
(5) Possession of qualifications found by the
Board to be equivalent to one or more of the standards set forth in this Rule.
(e) The Board may deny or withdraw approval of any course
instructor upon finding that:
(1) The course sponsor or the instructor has
made any false statements or presented false information in connection with an
application for approval;
(2) The instructor has failed to meet the
criteria for approval described in Paragraph (d) of this Rule or has refused or
failed to comply with any other provisions of this Subchapter;
(3) The instructor has failed to demonstrate,
during the teaching of courses, those effective teaching skills described in
Rule .0815 of this Section; or
(4) The instructor has provided false or
incorrect information in connection with any reports a course sponsor is
required to submit to the Board.
(f) If a licensee who is an approved course instructor
engages in any dishonest, fraudulent or improper conduct in connection with the
licensee's activities as an instructor, the licensee shall be subject to
disciplinary action pursuant to G.S. 85B-8 and G.S. 85B-9.
(g) Upon the written request of the Board, an approved
course instructor must submit to the Board a videotape depicting the instructor
teaching the course. The videotape must have been made within 12 months of the
date of submission, must be in VHS format, must include a label which clearly
identifies the instructor and the date of the videotaped presentation.
(h) An approved instructor who is a licensee of the Board
shall receive continuing education credit hours for instruction at a rate of
one hour for every one-half hour of approved course taught.
History Note: Authority G.S. 85B-4(e1);
Eff. July 1, 1999;
Temporary Amendment Eff. October 12, 2001;
Temporary Amendment Expired July 29, 2002;
Amended Eff. April 1, 2003.
21 ncac 04b .0805 SPONSOR REQUIREMENTS
(a) Any legal entity is eligible to seek approval as a
sponsor of continuing education courses, provided that the entity seeking
approval is either the owner of the proprietary rights to the course or has
lawfully acquired from the course owner the right to seek course approval from
the Board and to conduct such course.
(b) The official name to be used by any course sponsor in
connection with the offering of an approved continuing education course must
clearly distinguish the sponsor from any other previously approved continuing
education course sponsor. Unless the sponsor is an auction school approved
pursuant to G.S. 85B-4(d) proposing to operate continuing education courses in
its own name, the official name also must clearly distinguish the sponsor from
any approved auction school. Sponsor applicants proposing to use a sponsor
name which does not comply with this standard may be required to adopt a
different name as a condition of approval.
(c) Any advertisement or promotional material utilized by
an approved course sponsor must include the course sponsor's official name and
shall not include any other name for the sponsor.
(d) Prospective sponsors of a course must obtain written
approval from the Board to conduct such course prior to conducting the course
and prior to advertising or otherwise representing that the course is or may be
approved for continuing education credit in North Carolina. No retroactive
approval to conduct a course shall be granted for any reason.
(e) A sponsor of a course must designate one person to
serve as the continuing education coordinator for all Board-approved continuing
education courses offered by the sponsor. The designated coordinator shall
serve as the official contact person for the sponsor and shall be responsible
for the following:
(1) Supervising the conduct of all the
sponsor's Board-approved continuing education courses;
(2) Signing the course completion certificates
provided by the sponsor to licensees completing courses; and
(3) Submitting to the Board all required
rosters, reports and other information.
History Note: Authority G.S. 85B-4(e1);
Temporary Adoption Eff. January 1, 2000;
Eff. April 1, 2001.
21 NCAC 04B .0806 COURSE COMPLETION REPORTING
(a) Course sponsors must prepare and submit to the Board
reports verifying completion of each continuing education course conducted.
Sponsors must submit these reports to the Board in a manner that will assure
receipt by the Board within thirty calendar days following the course, but in
no case later than May 15 for courses conducted prior to that date. Reports
shall include the following:
(1) Official course name;
(2) Sponsor or coordinator name, mailing
address, and telephone number;
(3) Coordinator signature certifying that the information is correct;
(4) Name, address, and North Carolina license
number of each licensee who satisfactorily completes the course and who desires
continuing education credit for the course;
(5) Physical location where course was
conducted;
(6) Date(s), starting and ending times of
course; and
(7) Number of credit hours.
(b) At the request of the Board, course sponsors must
provide licensees enrolled in each continuing education course an opportunity
to complete an evaluation of the course upon completion of the course.
(c) Course sponsors shall provide each licensee who
satisfactorily completes an approved continuing education course a course
completion certificate. Sponsors must provide the certificates to licensees
within thirty calendar days following the course, but in no case later than May
15 for any course completed prior to that date. The certificate shall be
retained by the licensee as secondary proof of having completed the course.
Course completion certificates shall include the following:
(1) Official course name;
(2) Name of licensee who satisfactorily
completes the course;
(3) Date(s) of attendance;
(4) Number of credit hours; and
(5) Coordinator signature certifying that the information is correct.
(d) When a licensee in attendance at a continuing education
course does not comply with the student participation standards, the course
sponsor shall advise the Board of this matter in writing at the time reports verifying
completion of continuing education for the course are submitted. A sponsor who
determines that a licensee failed to comply with either the Board's attendance
or student participation standards shall not provide the licensee with a course
completion certificate nor shall the sponsor include the licensee's name on the
reports verifying completion of continuing education.
History Note: Authority G.S. 85B-4(e1);
Temporary Adoption Eff. January 1, 2000;
Eff. April 1, 2001;
Amended Eff. May 1, 2006.
21 ncac 04b .0807 CHANGE IN SPONSOR OWNERSHIP AND OTHER
INFORMATION
(a) The approval granted to a course sponsor may be
transferred to a new or different entity only with the advance approval of the
Board.
(b) Course sponsors must notify the Board in writing prior
to any change in business name, continuing education coordinator, address or
business telephone number.
(c) Course sponsors must obtain advance approval from the
Board for any changes to be made in the content or number of hours for courses;
provided that changes in course content which are solely for the purpose of
assuring that information provided in a course is current and accurate do not
require approval during the approval period, but shall be reported at the time
the sponsor requests renewal of course approval. Requests for approval of
changes shall be in writing.
History Note: Authority G.S. 85B-4(e1);
Temporary Adoption Eff. January 1, 2000;
Eff. April 1, 2001.
21 NCAC 04B .0808 COURSE RECORDS
All course sponsors must retain on file for two years
records of student registration and attendance for each session of a continuing
education course that is conducted and shall make such records available to the
Board, or its designee, upon request.
History Note: Authority G.S. 85B-4(e1);
Temporary Adoption Eff. January 1, 2000;
Eff. April 1, 2001.
21 ncac 04b .0809 RENEWAL OF COURSE AND SPONSOR APPROVAL
Board approval of all continuing education course sponsors
expires on the next June 30 following the date of issuance. In order to assure
continuous approval, a completed renewal application prescribed by the Board,
must be submitted to the Board annually on or before April 30. Any continuing
education course sponsor's renewal applications that are not received or that
are not complete on or before April 30 shall not have met the guidelines for
renewal and must meet the criteria for original approval as set forth in Rule
.0802.
History Note: Authority G.S. 85B-4(e1);
Temporary Adoption Eff. January 1, 2000;
Eff. April 1, 2001.
21 ncac 04b .0810 DENIAL OR WITHDRAWAL OF APPROVAL
(a) The Board may deny or withdraw approval of any course
or course sponsor upon finding that:
(1) The course sponsor has made any false
statements or presented any false information in connection with an application
for course or sponsor approval or renewal of such approval;
(2) The course sponsor or any official or
instructor in the employ of the course sponsor has refused or failed to comply
with any of the provisions of this Rule;
(3) The course sponsor or any official or
instructor in the employ of the course sponsor has provided false or incorrect
information in connection with any reports the course sponsor is required to
submit to the Board;
(4) An instructor in the employ of the course
sponsor fails to conduct approved courses in a manner that demonstrates
possession of the teaching skills described in Rule .0815 of this Section; or
(5) Any court of competent jurisdiction has
found the course sponsor or any official or instructor in the employ of the
course sponsor to have violated, in connection with the offering of continuing
education courses, any applicable federal or state law or regulation
prohibiting discrimination on the basis of disability, requiring places of
public accommodation to be in compliance with prescribed accessibility
standards, or requiring that courses related to licensing or certification for
professional or trade purposes be offered in a place and manner accessible to
persons with disabilities.
(b) If a licensee who is an approved course sponsor or an
instructor in the employ of an approved course sponsor engages in any
dishonest, fraudulent or unlawful conduct in connection with the licensee's
activities as a course sponsor or instructor, the licensee shall be subject to disciplinary
action pursuant to G.S. 85B-8 and G.S. 85B-9.
History Note: Authority G.S. 85B-4(e1);
Temporary Adoption Eff. January 1, 2000;
Eff. April 1, 2001.
21 NCAC 04B .0811 MINIMUM CLASS SIZE
The minimum class size for any session of an approved
continuing education course shall be five students, as determined by the
sponsor's preregistration records. The minimum class size requirement shall
not apply to class sessions when the sponsor notifies the Board in writing of
the scheduled class session and advertises in advance the scheduled class
session in the general auction community where the class session is to be
held. A sponsor who conducts a class session for fewer than five students
shall submit with the reports verifying completion of the course a copy of the
advertisement for the class session plus a statement or other documentation
indicating the date of the advertisement and the advertising method.
History Note: Authority G.S. 85B-4(e1);
Temporary Adoption Eff. January 1, 2000;
Eff. April 1, 2001.
21 NCAC 04B .0812 SCHEDULING AND NOTICE OF SCHEDULED
COURSES
(a) An hour of creditable instruction is defined as 50
minutes of instruction or practical exercise accompanied by a 10 minute break.
(b) Sponsors must provide the Board written notice of all scheduled
course offerings not later than 10 days prior to a scheduled course date. The
notice shall include the name of the sponsor and, for each scheduled course,
the name of the course, the scheduled date and time, specific location, and
name of the instructor(s).
(c) Sponsors must notify the Board of any schedule changes
or course cancellations at least five days prior to the original scheduled
course date. If a last minute change or cancellation is necessary due to some
unforeseen circumstance, then notice shall be provided to the Board as soon as
possible.
History Note: Authority G.S. 85B-4(e1);
Temporary Adoption Eff. January 1, 2000;
Eff. April 1, 2001.
21 NCAC 04B .0813 ADVERTISING; PROVIDING COURSE
INFORMATION
(a) Course sponsors must not utilize advertising of any
type that is false or misleading in any respect. If the number of continuing
education credit hours awarded by the Board for an approved course is less than
the number of scheduled hours for the course, any course advertisement or
promotional materials which indicate that the course is approved for mandatory
auctioneer continuing education credit in North Carolina must specify the
number of continuing education credit hours awarded by the Board for the
course.
(b) Any flyers, brochures or similar materials utilized to
promote a continuing education course must clearly describe the fee to be
charged and the sponsor's cancellation and fee refund policies.
(c) Upon course approval, course sponsors may include in
course descriptions and promotional materials the information contained in the
following illustration: This course [seminar or program] has been approved by
the Auctioneer Licensing Board for continuing education credit in the amount of
__ hours. This course is not sponsored by the Board.
(d) Course sponsors of any course must, upon request,
provide any prospective student a description of the course content sufficient
to give the prospective student a general understanding of the instruction to
be provided in the course.
History Note: Authority G.S. 85B-4(e1);
Temporary Adoption Eff. January 1, 2000;
Eff. April 1, 2001.
21 NCAC 04B .0814 CONDUCT OF CLASSES
(a) All class sessions of approved continuing education
courses must be open to all licensees on a first-come/first-served basis;
provided that the sponsor of a course which has a bona fide education or
experience prerequisite, such as an advanced course leading to a special
auctioneer designation, may refuse admission to a licensee not satisfying such
prerequisite.
(b) Courses not conducted electronically must be conducted
in a facility that provides an appropriate learning environment as set forth in
21 NCAC 04B .0502(e).
History Note: Authority G.S. 85B-4(e1);
Temporary Adoption Eff. January 1, 2000;
Eff. April 1, 2001.
21 ncac 04b .0815 INSTRUCTOR CONDUCT AND PERFORMANCE
(a) Instructors must assure that class sessions are
commenced in a timely manner and are conducted for the full amount of time that
is scheduled. Instructors must also assure that each student is furnished
student materials that directly support the topic matter being taught.
(b) Instructors must conduct themselves in a professional
and courteous manner when performing their instructional duties and must
conduct classes in a manner that demonstrates a mastery of the following basic
teaching skills:
(1) The ability to communicate effectively
through speech, including the ability to speak clearly using generally accepted
grammar and vocabulary.
(2) The ability to present an effective visual
image to a class by appearance and physical mannerisms.
(3) The ability to present instruction in a
thorough, accurate, logical, orderly and understandable manner, to utilize
illustrative examples and to respond to questions from students.
(4) The ability to effectively utilize varied
instructional techniques in addition to straight lecture, such as class
discussion, role playing or other techniques.
(5) The ability to effectively utilize
instructional aids to enhance learning.
(6) The ability to maintain a learning
environment conducive to learning and effective control of a class.
(7) The ability to interact with adult students
in a positive manner that encourages students to learn, that demonstrates an
understanding of varied student backgrounds, that avoids offending the
sensibilities of students, and that avoids personal criticism of any other
person, agency or organization.
History Note: Authority G.S. 85B-4(e1);
Temporary Adoption Eff. January 1, 2000;
Eff. April 1, 2001.
21 NCAC 04B .0816 MONITORING ATTENDANCE
(a) Sponsors and instructors must strictly monitor
attendance for the duration of each class session to assure that all students
reported as satisfactorily completing a course according to these Rules have
attended at least 90 percent of the scheduled classroom hours. Students shall
not be admitted to a class session after 10 percent of the scheduled classroom
hours have been conducted. Students shall not be allowed to sign a course
completion card, shall not be issued a course completion certificate, and shall
not be reported to the Board as having completed a course unless the student
fully satisfies the attendance requirement. Sponsors and instructors may not
make any exceptions to the attendance requirement for any reason.
(b) Sponsors must assure that adequate personnel, in
addition to the instructor, are present during all class sessions to assist the
instructor in monitoring attendance and performing the necessary administrative
tasks associated with conducting a course.
History Note: Authority G.S. 85B-4(e1);
Temporary Adoption Eff. January 1, 2000;
Eff. April 1, 2001.
21 ncac 04b .0817 STUDENT PARTICIPATION STANDARDS
(a) In addition to requiring student compliance with the
attendance requirement, sponsors and instructors shall require that students
comply with the following student participation standards:
(1) A student shall direct his attention to the
instruction being provided and refrain from engaging in activities unrelated to
the instruction.
(2) A student shall refrain from engaging in
any activities which are distracting to other students or the instructor, or
which otherwise disrupt the orderly conduct of a class.
(3) A student shall comply with all
instructions provided by the sponsor or instructor related to providing
information needed to properly report completion of a course by the student.
(b) Instructors and sponsors may dismiss from a class
session any student who fails to comply with the student participation
standards prescribed in Paragraph (a) of this Rule.
(c) Sponsors shall not issue a course completion
certificate to any student who fails to comply with the student participation
standards set forth in Paragraph (a) of this Rule, nor shall sponsors include
the name of such student on their reports verifying completion of a continuing
education course. Sponsors shall submit to the Board with their reports for
the class session a written statement which includes the name and license
number of the student for whom the sponsor does not report course credit,
details concerning the student's failure to comply with the student
participation standards, and names of other persons in attendance at the class
who witnessed the student's conduct.
History Note: Authority G.S. 85B-4(e1);
Temporary Adoption Eff. January 1, 2000;
Eff. April 1, 2001.
21 NCAC 04B .0818 ADDITIONAL SPONSOR REQUIREMENTS
(a) Sponsors and instructors may make available for
purchase by continuing education students materials that belong to the sponsor,
instructor, or some other party; however, class time may not be used to promote
or sell any materials or to solicit affiliation or membership in any business,
organization, or association.
(b) Course sponsors must administer course cancellation and
fee refund policies in a non-discriminatory manner. In the event a scheduled
course is canceled, reasonable efforts must be made to notify preregistered
students of the cancellation and all prepaid fees received from such
preregistered students must be refunded within 30 days of the date of
cancellation or, with the student's permission, applied toward the fees for
another course.
(c) Course sponsors shall admit the Board's authorized
representative to monitor any continuing education class without prior notice.
Such representative shall not be required to register or pay any fee and shall
not be reported as having completed the course.
(d) Course sponsors may deviate from these Rules concerning
the conduct of continuing education courses, such as rules addressing classroom
facilities, minimum class size and instructional methods, as may be necessary
in order for the sponsor to comply with the Americans with Disabilities Act or
other laws requiring such sponsors to accommodate persons with disabilities. A
sponsor providing a special accommodation for a licensee with a disability that
requires the sponsor to deviate from these Rules shall notify the Board in
writing of the accommodation at the time reports are submitted for the class
session attended by the licensee.
History Note: Authority G.S. 85-4(e1);
Temporary Adoption Eff. January 1, 2000;
Eff. April 1, 2001.
21 NCAC 04B .0819 ALTERNATIVE COMPLIANCE
(a) An auctioneer, apprentice auctioneer, or designated
person of an auction firm who is unable to attend a Board-approved course and
obtain the requisite hours of instruction established by the Board may apply to
the Board for alternative compliance.
(b) A written request for alternative compliance shall be
received by the Board by May 15 of the year in which the requisite hours of
instruction are to be completed.
(c) If approved, the course of instruction shall be
completed prior to license renewal and shall be exempt from the late fee.
(d) Alternative compliance shall include:
(1) Academic courses at a community college,
junior college, or college or university located in this State and accredited
by the Southern Association of Colleges and Schools in any of the following
topics:
(A) Accounting;
(B) Finance;
(C) Business Management;
(D) Business Law;
(E) Economics;
(F) Marketing;
(G) Computer Science;
(H) Sales; or
(I) Enhancing Personal or Professional Skills.
(2) Completion of any non-real estate appraisal
course with evidence of successful completion; and
(3) Publication of an article in professional
journal of general circulation among the membership of the profession.
History Note: Authority G.S. 85B-4(e1);
Temporary Adoption Eff. January 1, 2000;
Eff. April 1, 2001;
Amended Eff. May 1, 2006.
