SB389 Alabama 2019 Session

Summary

Primary Sponsor

Garlan GudgerSenator

Republican

Session

Regular Session 2019

Title

State Board of Auctioneers, qualifications for licensure, annual single use auction license, inactive licenses, reciprocal licensing of apprentice auctioneer prohibited, conduct of auctions without a license, disciplinary actions pursuant to APA, board membership and meetings, Secs. 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 am'd.

Summary

The bill tightens and broadens how Alabama regulates auctioneers, introduces a yearly single-use license for certain out-of-state licensees, adds inactive status, bans apprentice reciprocity, strengthens auction conduct and enforcement, and reshapes the State Board of Auctioneers' structure and duties.

What This Bill Does

It tightens licensure requirements for auctioneers and apprentices, including age, education, apprenticeship experience, exams, and background checks. It creates a single annual auction license for nonresidents or out-of-state licensees who meet criteria and post a $10,000 bond. It allows licensees to request inactive status with annual renewals and restoration requirements after inactivity. It bans reciprocal licensing for apprentice auctioneers and strengthens rules on how auctions are conducted, how auction companies operate, and how disciplinary actions are handled, including board investigations, hearings under the Alabama Administrative Procedure Act, and appeals; it also expands board governance and oversight.

Who It Affects

• Auctioneers and apprentice auctioneers (including applicants): face revised licensure standards, continuing education, renewal rules, potential disciplinary actions, and new processes for inactive status and reactivation.
• Auction companies and the buying/selling public: face stricter requirements for license-holding individuals, escrow/trust practices, contractual and advertising duties, record-keeping, sponsor responsibilities for apprentices, and expanded board enforcement and oversight.

Key Provisions

• Tightened licensure qualifications: ages (auctioneer 19+, apprentice 18+), approved education or equivalent schooling, apprenticeship hours, and examination; mandatory background disclosures and potential license denial for certain criminal histories.
• Single annual nonresident/out-of-state license: requires proof of qualifications, payment of a board-set fee, no prior license in Alabama, no disciplinary actions or convictions in any state, and a $10,000 bond or irrevocable letter of credit; bonds must be with a licensed surety and payable to the board.
• Inactive status and restoration: auctioneers may apply for inactive status with annual renewal; restoration requires evidence of meeting continuing education requirements from the most recent period of inactivity.
• Reciprocity changes: allows recognition of licenses from other states if they meet equal or higher standards (including for auctioneers), but prohibits reciprocal licensing for apprentice auctioneers.
• Auction conduct and company rules: requires licensee-specific authority, proper handling of escrow/trust accounts, written property contracts, disclosure of terms, closing statements within 30 days, advertising showing names and license numbers, truthful advertising, and five-year record retention available for board inspection.
• Disciplinary powers and penalties: board can revoke/suspend licenses, issue fines (ranging from $200 to $2,500 per violation), and seek injunctions; hearings follow the Alabama Administrative Procedure Act; appeals go to the Circuit Court with bond requirements.
• Board enforcement and governance: board may employ investigators, adopt rules, and issue licenses and administrative rules; board membership consists of seven auctioneer members and one consumer member, with term limits, governor accountability, and meeting/quorum rules; public records and seal provisions are established.
• Repeal of prior process: repeals the old requirement to maintain a separate register of applicants (34-4-22).
• Effective date: the act becomes law on the first day of the third month after passage and governor approval.

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

Subjects

Boards and Commissions