LAC 46:III.1120. Auction Business Licensing

A. Every applicant seeking to operate an auction house shall file with the board a completed application (on a form provided by the board) for a license for each auction business to be operated by that person. Although an auction business may operate in more than one location, at all times, it may only operate under the name licensed with the Louisiana Auctioneers Licensing Board. Auction businesses which sell property, either immovable or movable, located within the State of Louisiana are required to have a business license. B. The board shall base determination of satisfactory minimum qualifications for licensure of an entity as an auction business on the following requirements: 1. The applicant for an auction business, excluding those who conduct wholesale motor vehicle auctions in compliance with R.S. 32:794, shall designate a qualifying party who shall be the legal representative for the auction business relative to the provisions of this Chapter. The board may deny approval of the qualifying party for good cause, which may include the ability of the proposed principal owner or owners, principal shareholder or shareholders, or qualifying party to engage in the auction business as demonstrated by his prior auction business experience. Evidence which may be considered by the board shall be limited to any legal proceedings against the qualifying party or businesses where the qualifying party was in a position of control at the time a problem arose and the ultimate disposition of such proceedings, any financial history of bankruptcies, unpaid judgments, insolvencies, or any similar evidence. When the qualifying party terminates employment with the licensee, the board shall be notified in writing within thirty days of the disassociation, and another qualifying party shall qualify within 60 days. Should the qualifying party cancel or not renew his or her license, the license of the auction business shall be canceled at that time. The qualifying party or parties are any individual licensed as an auctioneer pursuant to the requirements in this Chapter and are one or more of the following: a. An applicant sole proprietor or spouse of an applicant sole proprietor. b. Any employee of an applicant who has been in full-time employment for one hundred twenty consecutive days immediately preceding the application. The employee may be allowed to be the qualifying party for the licensed company and related entities. i. If the qualifying party is an employee who has recently been hired to replace a party who has already been qualified, then the board may waive the one hundred twenty-day requirement upon good cause shown. ii. No auction business may go for more than 60 days without designating a qualifying party. iii. If an auction business is a first-time applicant to the state of Louisiana, an authorized party must be assigned but the 120 day requirement is waived. iv. However, the authorized party must receive final approval as the qualifying party no more than 180 days after formation of the auction business. c. Any stockholder, officer, or director of an applicant corporation, which stockholder, officer or director has been in the office for at least 30 days prior to the application for licensing. d. Any partner of an applicant partnership which partner has been in the office for at least 30 days prior to the application for licensing. e. Any member or manager of an applicant limited liability company which member or manager has been in the office for at least 30 days prior to the application for licensing. 2. If the entity intends to conduct auctions wherein vehicles will be auctioned as defined by R.S. 32:1, the entity shall hold a valid dealer license pursuant to R.S. 32:1254 unless a valid dealer license is not required by the regulating agency. C. Auction houses which conduct business solely through internet-based platforms are not required to employ a licensed auctioneer to call the auction. Any live or simulcast auctions are required to employ a licensed auctioneer to call the live or real-time auction. Auction businesses are required to have a qualifying party. D. Auction Businesses which conduct any auction through an internet-based platform are responsible for the actions of the platform. E. Licensing Fee. Each application for licensing shall be accompanied by a license fee in the amount of $300. Renewal of each auction business license shall be on an annual basis, no later than February 1 of each calendar year. An auction business license renewal fee shall be $300. F. Application Information. Each applicant shall submit the following information on the designated application form: 1. the name of each owner of the entity and the length of time each such person has been an owner; 2. each business address of the entity; 3. each auctioneer licensed by the date of application who has been employed by the business for more than one auction in the previous calendar year; 4. the nature of the business and the product to be sold; 5. two references who shall be auctioneers currently licensed in this state in good standing with the board; 6. a good and sufficient surety bond executed by the applicant as principal and by a surety company qualified to do business in the state of Louisiana as surety in the amount of $25,000.00. 7. a copy of the current auctioneer license of the qualifying party. 8. a copy of the current dealer license for those entities conducting auctions of vehicles if such license is required. 9. Any information required by Subsection B of this Section. G. If, in the opinion of the board, the applicant provided inadequate information to allow the board to ascertain whether the applicant satisfies the qualifications for licensing, the applicant shall be required to provide additional information for purposes of the application or may be required to present himself for an interview for this purpose. H. The qualifications of an applicant applying for an auction business license shall be the same as those articulated at R.S. 37:3113(a)1 through 37:3113 pertaining to the licensing of auctioneers. I. An auction business licensee with a physical location within this State shall be able to operate the licensed auction business in any parish of the state of Louisiana. Should the licensee desire to operate the business at more than one location or change the location, the licensee shall give the Louisiana Auctioneers Licensing Board written notice of the change at least five days prior to the change of address or establishment of new location, as well as provide a physical and mailing address of the new or additional location of the business. Failure by licensee to give notice to the Louisiana Auctioneers Licensing Board after such change of location (or establishment of an additional location) shall be grounds for revocation of the auction business license by the board. J. A licensee's auction business license shall automatically be suspended if no licensed auctioneer is engaged in conducting the auctions for the licensee if the auction house conducts live or simulcast auctions. Such license may be reinstated by the board for the unexpired term upon proof that a duly licensed auctioneer has been affiliated with the auction business. This subsection will not apply to auction houses which conduct business solely through internet-based platforms which are not required to employ a licensed auctioneer to call the auction. K. The provision of R.S. 37:3115 relative to renewal of license, certificate and penalties for failure to renew the license of auctioneers, shall also apply to an auction business license. L. No auction business license shall be issued or renewed unless the applicant presents a bond in the amount of $25,000.00 in a form approved by the board. M. A resident Louisiana licensed auctioneer may operate an auction business without a fee, and without posting of an additional surety bond if a surety bond guaranteeing his performance as an auctioneer has previously been posted. N. An auction business must display in its office or offices, its current license to do business as an auction business at all times. An auction business must display its Louisiana license number on its website and in all advertising in a prominent location with the license number preceded by “LA” to indicate the issuing state.