51-05.1 Auctioneers' and Clerks' Licenses

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CHAPTER 51-05.1AUCTIONEERS' AND CLERKS' LICENSES51-05.1-01. Auctioneering or clerking without a license prohibited. No person mayconduct a sale as an auctioneer or clerk unless licensed by the public service commission.51-05.1-01.1. Auctioneer's license - Clerk's license - Fees - Bonds.1.The initial application for an annual auctioneer's or clerk's license must be in writing,<br>verified, and must show the name, residence, and address of the applicant. An<br>application must be filed at least ten days prior to the first auction sale the applicant<br>is to conduct or clerk. Application for renewal of an annual license must be on forms<br>designated by the commission.The fee for the annual license or renewal isthirty-five dollars and must accompany the application.The name and licensenumber must appear on all advertising of sales conducted by an auctioneer or clerk.<br>Renewals that are not received by January thirty-first must be assessed an<br>additional twenty-five dollar fee.2.Before a license is issued to an auctioneer or clerk, the applicant must file a<br>corporate surety bond with the commission.This bond must provide annualcoverage of not less than five thousand dollars for an auctioneer or ten thousand<br>dollars for a clerk, must run to the state of North Dakota, and must be for the benefit<br>of any person injured by the licensee's improper conduct.Bonds may not becanceled on less than sixty days' written notice to the commission. When notice of<br>cancellation is received by the commission, the commission, without hearing, shall<br>revoke the license for which the bond was issued effective with the effective date of<br>the cancellation, unless the licensee files a new bond or evidence that the bond will<br>be reinstated before the effective date of the cancellation. The size of the licensee's<br>bond must be clearly and prominently stated in all contracts with sellers.51-05.1-01.2. Exemptions. A license under this chapter is not required for the following:1.Sale of an estate by an executor or an administrator.2.Sale by a sheriff or other person under court order.3.Sale by a public official acting in an official capacity.4.Sale of purebred or registered livestock.A bond is not required for a federally insured financial institution to clerk a sale. Persons exempt<br>from licensing or bonding under this section shall comply with all other provisions of this chapter.51-05.1-02. License standards.1.Licenses may be granted only to persons who bear a good reputation for honesty,<br>truthfulness, and fair dealing and who are competent to transact the business of an<br>auctioneer or a clerk.2.An applicant for a license must be at least eighteen years of age. Every applicant<br>for a license as an auctioneer shall:a.Have been actively engaged as a licensed auctioneer for a period of at least<br>one year preceding the date of application; orb.Furnish proof of satisfactory completion of an approved course of study relating<br>to auctioneers.Page No. 151-05.1-02.1. Conviction not bar to licensure - Exceptions. Conviction of an offensedoes not disqualify a person from licensure under this chapter unless the public service<br>commission determines that the offense has a direct bearing upon a person's ability to serve the<br>public as an auctioneer, or that, following conviction of any offense, the person is not sufficiently<br>rehabilitated under section 12.1-33-02.1.51-05.1-03.Investigation - Grounds for refusal, suspension, or revocation oflicense - Hearing on appeal.1.The public service commission upon its own motion may, and upon the verified<br>complaint in writing of any person shall, investigate the activities of any licensee or<br>any person who shall assume to act in such capacity within the state and shall have<br>the power to suspend or revoke a license when the licensee, in performing or<br>attempting to perform any of the acts included within the scope of this chapter, has<br>performed one or more of the following:a.Made a material false statement in the licensee's application for a license or in<br>any information furnished to the commission.b.Made a substantial and willful misrepresentation relating to an auction sale<br>which injures the party for which the licensee acts as agent.c.Made any false promise of a character such as to influence, persuade, or<br>induce a party to an auction sale to that party's injury or damage.d.Failed to account for or to remit, within a reasonable time, not exceeding thirty<br>days, any moneys coming into the licensee's possession belonging to another,<br>commingled funds of others with the licensee's own, failed to keep such funds<br>or others in an escrow or trust account with a bank or other recognized<br>depository in this state, or failed to keep records relative to the deposits, which<br>must contain such information as prescribed by the rules of the commission.e.Pled guilty or nolo contendere before, or been convicted by, any federal court or<br>a court of competent jurisdiction in this or any other state of an offense<br>determined by the commission to have a direct bearing upon a person's ability<br>to serve the public as an auctioneer, or the board determines, following<br>conviction of any offense, that the person is not sufficiently rehabilitated under<br>section 12.1-33-02.1.f.Failed or refused upon demand to produce any document, book, or records in<br>the licensee's possession or under the licensee's control, concerning any<br>auction sale under investigation by the commission.g.Failed to deliver to the seller in every auction sale a complete, detailed closing<br>statement showing all the receipts and disbursements handled by such<br>licensee for the seller and to retain true copies of such statements in the<br>licensee's files for two years.h.Violated any provisions of this chapter or chapter 41-02, 51-12, or 51-15, or rule<br>or regulation promulgated by the commission.2.If the public service commission declines or fails to approve an application submitted<br>to it, it shall immediately give notice of that fact to the applicant, and upon request<br>from such applicant filed within twenty days after the receipt of such notice, shall fix<br>a time and place for a hearing, of which twenty days' notice must be given to such<br>applicant and to other persons interested or protesting, to offer such evidence<br>relating to the application. In such cases the commission shall fix the time for such<br>hearing on a date within sixty days from receipt of the request for the particular<br>hearing, provided the time of hearing may be continued from time to time with thePage No. 2consent of the applicant. As a result of such hearing, the commission may either<br>approve the application if all of the applicable provisions of this chapter have been<br>met, or it may sustain its prior decision refusing to approve the application.3.No license may be revoked or suspended except after hearing before the public<br>service commission with a copy of the charges having been duly served upon the<br>licensee and upon sustaining the charges for suspension or revocation.Theprovisions of chapter 28-32, including but not limited to procedures for service of<br>process, hearing, rules, evidence, findings, and appeals, apply to and govern all<br>proceedings for suspension or revocation of license, except when inconsistent with<br>this chapter.51-05.1-04. Definitions.1.An auctioneer within the meaning of this chapter is a person, who for a<br>compensation or valuable consideration, sells or offers for sale either real or<br>personal property at public auction as a whole or partial vocation.2.A clerk within the meaning of this chapter is any person, firm, partnership,<br>copartnership, association, corporation, or limited liability company, who for a<br>compensation or valuable consideration, is employed either directly or indirectly by<br>an owner while the sale is in progress to record each item offered for sale, its selling<br>price, the buyer's name or number, to collect all proceeds of said sale, to pay all<br>expenses connected with the sale, to prepare a full closing statement of all receipts<br>and disbursements, and make settlement thereon to parties properly entitled thereto<br>within a reasonable length of time.3.A single act performed or isolated transactions in the selling of property at auction<br>for another shall not constitute the person performing, offering, or attempting to<br>perform any of the acts enumerated herein, an auctioneer within the meaning of this<br>chapter.4."Seller" means the owner or consignor of property to be sold at auction.51-05.1-04.1. Written contracts. An auctioneer may not sell the property of another atauction without a prior written contract with the seller which sets forth the terms and conditions<br>upon which the auctioneer will sell the property. A similar contract governing the activities of the<br>auction clerk is required between the auction clerk and the seller. The licensee must retain a<br>copy of each contract for at least two years after the auction. This section does not apply to<br>consignment sales when the value of the seller's property is less than five hundred dollars or to<br>livestock markets. The contract must contain:1.The licensee's name, trade or business name, state license number, business<br>address, and business telephone number.2.A general description of the property to be sold at auction, any restrictions, and a<br>statement identifying whether or not the licensee is authorized to purchase at the<br>auction.3.A description of the services to be provided and the consideration for the services.<br>The description must state which party is responsible for advertising and other<br>expenses.4.The date or dates when the items will be sold at auction.5.A disclosure of the amount of bond that the licensee has on file with the commission<br>and the commission's address and telephone number.Page No. 351-05.1-04.2. Buyer's premium. A successful bidder may not be required to pay anamount in excess of the successful bid and governmental fees and taxes, unless before bidding<br>the bidder has signed a statement which clearly describes the additional amount and states how<br>the actual amount due will be determined.51-05.1-05. Handling of funds by clerk of auction sale. Every clerk of an auction saleshall, at all times, maintain in the clerk's name or firm name, a separate trust account designated<br>as such in a federally insured bank or other federally insured depository in this state in which the<br>clerk shall immediately deposit all funds not the clerk's own, including funds in which the clerk<br>may have some future interest or claim. A federally insured depository located outside the state<br>but licensed as a clerk in this state is not required to deposit funds in a depository in this state if<br>auction sale funds are deposited in a separate trust account designated as such in the licensee's<br>depository. No clerk may commingle the clerk's personal funds or other funds in a trust account<br>except that a clerk may deposit and keep a sum of one hundred dollars in such account from the<br>clerk's personal funds, which sum must be specifically identified and deposited to cover service<br>charges related to the trust account. In conjunction with such account, the clerk shall maintain at<br>the clerk's usual place of business books, records, and other documents so that the adequacy of<br>such account may be determined at any time. Trust accounts and other records must be open to<br>inspection by the public service commission and its duly authorized agents at all times during<br>regular business hours at the clerk's usual place of business.51-05.1-06. License list. Repealed by S.L. 2001, ch. 440,</div></article><aside class="right-sidebar"><div class="related-sidebar"><h3><span class="emoji">⚖️</span> State Laws</h3><ul class="state-laws-list"><li><a href="https://state-laws.laws.com/state-of-alabama">The State Laws of Alabama</a></li><li><a href="https://state-laws.laws.com/state-of-alaska">The State Laws of Alaska</a></li><li><a href="https://state-laws.laws.com/state-of-arizona">The State Laws of Arizona</a></li><li><a href="https://state-laws.laws.com/state-of-arkansas">The State Laws of Arkansas</a></li><li><a href="https://state-laws.laws.com/state-of-california">The State Laws of California</a></li><li><a href="https://state-laws.laws.com/state-of-colorado">The State Laws of Colorado</a></li><li><a href="https://state-laws.laws.com/state-of-connecticut">The State Laws of Connecticut</a></li><li><a href="https://state-laws.laws.com/state-of-delaware">The State Laws of Delaware</a></li><li><a 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height:815px; text-align:center;\"\u003eLoading PDF...\u003c/div\u003e\u003cscript type=\"text/javascript\"\u003e var pdf_url = 'https://law.justia.com/codes/north-dakota/2009/t51/pdf/t51c051.pdf'; $(document).ready(function() { var embedwindow = $(\"#embed_document\"); if ($.browser.msie){ embedwindow.html('\u003cembed src=\"'+pdf_url+'\" width=\"100%\" height=\"100%\"\u003e\u003c/embed\u003e'); } else { embedwindow.html('\u003ciframe style=\"width:100%; height:100%;\" src=\"https://docs.google.com/gview?url='+window.escape(pdf_url)+'\u0026embedded=true\" frameborder=\"0\"\u003e\u003c/iframe\u003e'); } });\u003c/script\u003e\u003cbr\u003e\u003cbr\u003e\u003cnoframes\u003eCHAPTER 51-05.1AUCTIONEERS' AND CLERKS' LICENSES51-05.1-01. Auctioneering or clerking without a license prohibited. No person mayconduct a sale as an auctioneer or clerk unless licensed by the public service commission.51-05.1-01.1. Auctioneer's license - Clerk's license - Fees - Bonds.1.The initial application for an annual auctioneer's or clerk's license must be in writing,\u003cbr\u003everified, and must show the name, residence, and address of the applicant. An\u003cbr\u003eapplication must be filed at least ten days prior to the first auction sale the applicant\u003cbr\u003eis to conduct or clerk. Application for renewal of an annual license must be on forms\u003cbr\u003edesignated by the commission.The fee for the annual license or renewal isthirty-five dollars and must accompany the application.The name and licensenumber must appear on all advertising of sales conducted by an auctioneer or clerk.\u003cbr\u003eRenewals that are not received by January thirty-first must be assessed an\u003cbr\u003eadditional twenty-five dollar fee.2.Before a license is issued to an auctioneer or clerk, the applicant must file a\u003cbr\u003ecorporate surety bond with the commission.This bond must provide annualcoverage of not less than five thousand dollars for an auctioneer or ten thousand\u003cbr\u003edollars for a clerk, must run to the state of North Dakota, and must be for the benefit\u003cbr\u003eof any person injured by the licensee's improper conduct.Bonds may not becanceled on less than sixty days' written notice to the commission. When notice of\u003cbr\u003ecancellation is received by the commission, the commission, without hearing, shall\u003cbr\u003erevoke the license for which the bond was issued effective with the effective date of\u003cbr\u003ethe cancellation, unless the licensee files a new bond or evidence that the bond will\u003cbr\u003ebe reinstated before the effective date of the cancellation. The size of the licensee's\u003cbr\u003ebond must be clearly and prominently stated in all contracts with sellers.51-05.1-01.2. Exemptions. A license under this chapter is not required for the following:1.Sale of an estate by an executor or an administrator.2.Sale by a sheriff or other person under court order.3.Sale by a public official acting in an official capacity.4.Sale of purebred or registered livestock.A bond is not required for a federally insured financial institution to clerk a sale. Persons exempt\u003cbr\u003efrom licensing or bonding under this section shall comply with all other provisions of this chapter.51-05.1-02. License standards.1.Licenses may be granted only to persons who bear a good reputation for honesty,\u003cbr\u003etruthfulness, and fair dealing and who are competent to transact the business of an\u003cbr\u003eauctioneer or a clerk.2.An applicant for a license must be at least eighteen years of age. Every applicant\u003cbr\u003efor a license as an auctioneer shall:a.Have been actively engaged as a licensed auctioneer for a period of at least\u003cbr\u003eone year preceding the date of application; orb.Furnish proof of satisfactory completion of an approved course of study relating\u003cbr\u003eto auctioneers.Page No. 151-05.1-02.1. Conviction not bar to licensure - Exceptions. Conviction of an offensedoes not disqualify a person from licensure under this chapter unless the public service\u003cbr\u003ecommission determines that the offense has a direct bearing upon a person's ability to serve the\u003cbr\u003epublic as an auctioneer, or that, following conviction of any offense, the person is not sufficiently\u003cbr\u003erehabilitated under section 12.1-33-02.1.51-05.1-03.Investigation - Grounds for refusal, suspension, or revocation oflicense - Hearing on appeal.1.The public service commission upon its own motion may, and upon the verified\u003cbr\u003ecomplaint in writing of any person shall, investigate the activities of any licensee or\u003cbr\u003eany person who shall assume to act in such capacity within the state and shall have\u003cbr\u003ethe power to suspend or revoke a license when the licensee, in performing or\u003cbr\u003eattempting to perform any of the acts included within the scope of this chapter, has\u003cbr\u003eperformed one or more of the following:a.Made a material false statement in the licensee's application for a license or in\u003cbr\u003eany information furnished to the commission.b.Made a substantial and willful misrepresentation relating to an auction sale\u003cbr\u003ewhich injures the party for which the licensee acts as agent.c.Made any false promise of a character such as to influence, persuade, or\u003cbr\u003einduce a party to an auction sale to that party's injury or damage.d.Failed to account for or to remit, within a reasonable time, not exceeding thirty\u003cbr\u003edays, any moneys coming into the licensee's possession belonging to another,\u003cbr\u003ecommingled funds of others with the licensee's own, failed to keep such funds\u003cbr\u003eor others in an escrow or trust account with a bank or other recognized\u003cbr\u003edepository in this state, or failed to keep records relative to the deposits, which\u003cbr\u003emust contain such information as prescribed by the rules of the commission.e.Pled guilty or nolo contendere before, or been convicted by, any federal court or\u003cbr\u003ea court of competent jurisdiction in this or any other state of an offense\u003cbr\u003edetermined by the commission to have a direct bearing upon a person's ability\u003cbr\u003eto serve the public as an auctioneer, or the board determines, following\u003cbr\u003econviction of any offense, that the person is not sufficiently rehabilitated under\u003cbr\u003esection 12.1-33-02.1.f.Failed or refused upon demand to produce any document, book, or records in\u003cbr\u003ethe licensee's possession or under the licensee's control, concerning any\u003cbr\u003eauction sale under investigation by the commission.g.Failed to deliver to the seller in every auction sale a complete, detailed closing\u003cbr\u003estatement showing all the receipts and disbursements handled by such\u003cbr\u003elicensee for the seller and to retain true copies of such statements in the\u003cbr\u003elicensee's files for two years.h.Violated any provisions of this chapter or chapter 41-02, 51-12, or 51-15, or rule\u003cbr\u003eor regulation promulgated by the commission.2.If the public service commission declines or fails to approve an application submitted\u003cbr\u003eto it, it shall immediately give notice of that fact to the applicant, and upon request\u003cbr\u003efrom such applicant filed within twenty days after the receipt of such notice, shall fix\u003cbr\u003ea time and place for a hearing, of which twenty days' notice must be given to such\u003cbr\u003eapplicant and to other persons interested or protesting, to offer such evidence\u003cbr\u003erelating to the application. In such cases the commission shall fix the time for such\u003cbr\u003ehearing on a date within sixty days from receipt of the request for the particular\u003cbr\u003ehearing, provided the time of hearing may be continued from time to time with thePage No. 2consent of the applicant. As a result of such hearing, the commission may either\u003cbr\u003eapprove the application if all of the applicable provisions of this chapter have been\u003cbr\u003emet, or it may sustain its prior decision refusing to approve the application.3.No license may be revoked or suspended except after hearing before the public\u003cbr\u003eservice commission with a copy of the charges having been duly served upon the\u003cbr\u003elicensee and upon sustaining the charges for suspension or revocation.Theprovisions of chapter 28-32, including but not limited to procedures for service of\u003cbr\u003eprocess, hearing, rules, evidence, findings, and appeals, apply to and govern all\u003cbr\u003eproceedings for suspension or revocation of license, except when inconsistent with\u003cbr\u003ethis chapter.51-05.1-04. Definitions.1.An auctioneer within the meaning of this chapter is a person, who for a\u003cbr\u003ecompensation or valuable consideration, sells or offers for sale either real or\u003cbr\u003epersonal property at public auction as a whole or partial vocation.2.A clerk within the meaning of this chapter is any person, firm, partnership,\u003cbr\u003ecopartnership, association, corporation, or limited liability company, who for a\u003cbr\u003ecompensation or valuable consideration, is employed either directly or indirectly by\u003cbr\u003ean owner while the sale is in progress to record each item offered for sale, its selling\u003cbr\u003eprice, the buyer's name or number, to collect all proceeds of said sale, to pay all\u003cbr\u003eexpenses connected with the sale, to prepare a full closing statement of all receipts\u003cbr\u003eand disbursements, and make settlement thereon to parties properly entitled thereto\u003cbr\u003ewithin a reasonable length of time.3.A single act performed or isolated transactions in the selling of property at auction\u003cbr\u003efor another shall not constitute the person performing, offering, or attempting to\u003cbr\u003eperform any of the acts enumerated herein, an auctioneer within the meaning of this\u003cbr\u003echapter.4.\u0026quot;Seller\u0026quot; means the owner or consignor of property to be sold at auction.51-05.1-04.1. Written contracts. An auctioneer may not sell the property of another atauction without a prior written contract with the seller which sets forth the terms and conditions\u003cbr\u003eupon which the auctioneer will sell the property. A similar contract governing the activities of the\u003cbr\u003eauction clerk is required between the auction clerk and the seller. The licensee must retain a\u003cbr\u003ecopy of each contract for at least two years after the auction. This section does not apply to\u003cbr\u003econsignment sales when the value of the seller's property is less than five hundred dollars or to\u003cbr\u003elivestock markets. The contract must contain:1.The licensee's name, trade or business name, state license number, business\u003cbr\u003eaddress, and business telephone number.2.A general description of the property to be sold at auction, any restrictions, and a\u003cbr\u003estatement identifying whether or not the licensee is authorized to purchase at the\u003cbr\u003eauction.3.A description of the services to be provided and the consideration for the services.\u003cbr\u003eThe description must state which party is responsible for advertising and other\u003cbr\u003eexpenses.4.The date or dates when the items will be sold at auction.5.A disclosure of the amount of bond that the licensee has on file with the commission\u003cbr\u003eand the commission's address and telephone number.Page No. 351-05.1-04.2. Buyer's premium. A successful bidder may not be required to pay anamount in excess of the successful bid and governmental fees and taxes, unless before bidding\u003cbr\u003ethe bidder has signed a statement which clearly describes the additional amount and states how\u003cbr\u003ethe actual amount due will be determined.51-05.1-05. Handling of funds by clerk of auction sale. Every clerk of an auction saleshall, at all times, maintain in the clerk's name or firm name, a separate trust account designated\u003cbr\u003eas such in a federally insured bank or other federally insured depository in this state in which the\u003cbr\u003eclerk shall immediately deposit all funds not the clerk's own, including funds in which the clerk\u003cbr\u003emay have some future interest or claim. A federally insured depository located outside the state\u003cbr\u003ebut licensed as a clerk in this state is not required to deposit funds in a depository in this state if\u003cbr\u003eauction sale funds are deposited in a separate trust account designated as such in the licensee's\u003cbr\u003edepository. No clerk may commingle the clerk's personal funds or other funds in a trust account\u003cbr\u003eexcept that a clerk may deposit and keep a sum of one hundred dollars in such account from the\u003cbr\u003eclerk's personal funds, which sum must be specifically identified and deposited to cover service\u003cbr\u003echarges related to the trust account. In conjunction with such account, the clerk shall maintain at\u003cbr\u003ethe clerk's usual place of business books, records, and other documents so that the adequacy of\u003cbr\u003esuch account may be determined at any time. Trust accounts and other records must be open to\u003cbr\u003einspection by the public service commission and its duly authorized agents at all times during\u003cbr\u003eregular business hours at the clerk's usual place of business.51-05.1-06. License list. 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