Section .0100 ‑ Organization And General Provisions

Link to law: http://reports.oah.state.nc.us/ncac/title 21 - occupational licensing boards and commissions/chapter 04 - auctioneers/subchapter b/subchapter b rules.html
Published: 2015

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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.