HB672 Alabama 2011 Session

Summary

Primary Sponsor

Alan Boothe

Republican

Session

Regular Session 2011

Title

Auctioneers, State Board of, licensing further provided for, definitions, inactive status, reciprocity, investigations, Secs. 34-4-2, 34-4-20, 34-4-21, 34-4-23, 34-4-25, 34-4-27, 34-4-28, 34-4-29, 34-4-30, 34-4-31, 34-4-33, 34-4-50, 34-4-52, 34-4-54 am'd.; Sec. 34-4-22 repealed

Summary

HB672 overhauls Alabama's auctioneer licensing by moving to a two-year license cycle, creating an inactive status, expanding reciprocity, and strengthening the State Board of Auctioneers' oversight and licensing requirements.

What This Bill Does

If enacted, the bill changes license terms from one year to two years and establishes an inactive license option. It broadens licensing definitions, adds a firm (corporate) license concept, expands the board's power to investigate, issue complaints, and hold hearings, and allows suspensions or revocations for frivolous or unfounded complaints. It creates new duties for licensees (escrow/trust accounts, contracts, closing statements, advertising disclosures, and recordkeeping), imposes continuing education and fee structures, and introduces reciprocity rules and a limited nonresident license for cross-state practice. It also places the Board under the Sunset Law (requiring periodic renewal of existence) and repeals a prior section, with various administrative and regulatory changes scattered through many sections.

Who It Affects

• Licensed auctioneers, apprentice auctioneers, auction companies, and sponsoring entities in Alabama; they would face a two-year license cycle, new inactive status option, heightened recordkeeping and advertising requirements, mandatory escrow/trust accounts, and expanded disciplinary powers.
• Nonresident auctioneers and reciprocal licensees (and the states that license them); they would be subject to new reciprocity rules, potential one-year nonresident licensing, required Alabama-comparable standards, and proof of qualifications and finances to obtain Alabama licensure.

Key Provisions

• License period extended: annual license requirement replaced with a two-year licensing cycle; licenses expire after the two-year period and may be renewed with fees.
• Inactive status: licensees may request inactive status (renewed every two years) and must meet continuing education requirements to reactivate.
• Reciprocity and nonresident licensing: board may recognize licenses from reciprocal states; nonresidents may obtain a one-auction license per calendar year if meeting Alabama requirements or pass an Alabama exam with required experience; board may impose reciprocal-state conditions.
• Board authority and discipline: board may investigate, hear, suspend, or revoke licenses; may suspend for frivolous or unfounded complaints; imposes fines and allows injunctions; sets grounds for discipline (misrepresentation, bad faith, failure to maintain records, etc.).
• Financial practices and records: licensees must maintain segregated escrow/trust accounts; require written contracts with owners/consignors; provide closing statements and HUD-1 forms for real estate; advertising must display license numbers; sponsor information required for apprentices; keep five years of records available for board inspection.
• Definitions and licensing structure: expands definitions to cover auctioneering activities, auction companies, and related entities; establishes requirements for apprentices and principals in auctions; clarifies authority for corporate and copartnership licenses with designated responsible individuals.
• Fees and continuing education: sets license/renewal fees within defined ranges; requires continuing education without testing and with certain exemptions (e.g., 65+); authorizes hardship waivers; continuing education verification is required for license reactivation.
• Sunset and repeal: board is subject to the Sunset Law and would automatically terminate in 2015 unless continued; Section repeals 34-4-22; act becomes effective upon approval.
• Administrative and enforcement provisions: board to maintain a seal, public records, quarterly meetings, and a quasi-judicial role; establishes process for appeals and associated costs.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Auctioneers, State Board of