Auctioneer License Laws and Other Auction Regulations

Illinois Compiled Statutes
Regulation
Chapter 225. Professions and Occupations
Service and Sales
Act 407. Auction License Act
Article 5. General Provisions
Current through P.A. 98-0604 (2013-2014)
§ 225 ILCS 407/5-1. Short title

This Act may be cited as the Auction License Act.

Cite as 225 ILCS 407/5-1

History. P.A. 91-603, eff. 1-1-00.

§ 225 ILCS 407/5-5. Legislative intent

The General Assembly finds that Illinois does not have the ability, without legislation, to enter into reciprocal agreements with other states to allow residents of Illinois to practice auctioneering in other states. This body further finds that, without legislation, Illinois does not have the ability to evaluate the competency of persons engaged in the auction business or to regulate this business for the protection of the public. Therefore, it is the purpose of this Act to license and regulate auctioneers.

Cite as 225 ILCS 407/5-5

History. P.A. 91-603, eff. 1-1-00.

§ 225 ILCS 407/5-10. [Effective Until 1/1/2014] Definitions

As used in this Act:

"Advertisement" means any written, oral, or electronic communication that contains a promotion, inducement, or offer to conduct an auction or offer to provide an auction service, including but not limited to brochures, pamphlets, radio and television scripts, telephone and direct mail solicitations, electronic media, and other means of promotion.

"Advisory Board" or "Board" means the Auctioneer Advisory Board.

"Associate auctioneer" means a person who conducts an auction, but who is under the direct supervision of, and is sponsored by, a licensed auctioneer or auction firm.

"Auction" means the sale or lease of property, real or personal, by means of exchanges between an auctioneer and prospective purchasers or lessees, which consists of a series of invitations for offers made by the auctioneer and offers by prospective purchasers or lessees for the purpose of obtaining an acceptable offer for the sale or lease of the property, including the sale or lease of property via mail, telecommunications, or the Internet.

"Auction contract" means a written agreement between an auctioneer or auction firm and a seller or sellers.

"Auction firm" means any corporation, partnership, or limited liability company that acts as an auctioneer and provides an auction service.

"Auction school" means any educational institution, public or private, which offers a curriculum of auctioneer education and training approved by the Department.

"Auction service" means the service of arranging, managing, advertising, or conducting auctions.

"Auctioneer" means a person or entity who, for another, for a fee, compensation, commission, or any other valuable consideration at auction or with the intention or expectation of receiving valuable consideration by the means of or process of an auction or sale at auction or providing an auction service, offers, negotiates, or attempts to negotiate an auction contract, sale, purchase, or exchange of goods, chattels, merchandise, personal property, real property, or any commodity that may be lawfully kept or offered for sale by or at auction.

"Address of Record" means the designated address recorded by the Department in the applicant's or licensee's application file or license file maintained by the Department. It is the duty of the applicant or licensee to inform the Department of any change of address, and such changes must be made either through the Department's website or by directly contacting the Department.

"Buyer premium" means any fee or compensation paid by the successful purchaser of property sold or leased at or by auction, to the auctioneer, auction firms, seller, lessor, or other party to the transaction, other than the purchase price.

"Department" means the Department of Financial and Professional Regulation.

"Goods" means chattels, movable goods, merchandise, or personal property or commodities of any form or type that may be lawfully kept or offered for sale.

"Licensee" means any person licensed under this Act.

"Managing auctioneer" means any person licensed as an auctioneer who manages and supervises licensees sponsored by an auction firm or auctioneer.

"Person" means an individual, association, partnership, corporation, or limited liability company or the officers, directors, or employees of the same.

"Pre-renewal period" means the 24 months prior to the expiration date of a license issued under this Act.

"Secretary" means the Secretary of the Department of Financial and Professional Regulation or his or her designee.

"Sponsoring auctioneer" means the auctioneer or auction firm who has issued a sponsor card to a licensed auctioneer.

"Sponsor card" means the temporary permit issued by the sponsoring auctioneer certifying that the licensee named thereon is employed by or associated with the sponsoring auctioneer and the sponsoring auctioneer shall be responsible for the actions of the sponsored licensee.

Cite as 225 ILCS 407/5-10

History. Amended by P.A. 096-0730, §20, eff. 8/25/2009.

Amended by P.A. 095-0572, §5, eff. 6/1/2008.

P.A. 91-603, eff. 1-1-00; 92-16, eff. 6-28-01.

Note: This section is set out twice. See also 225 ILCS 407/5-10, as amended by P.A. 098-0553, §5, eff. 1/1/2014.

§ 225 ILCS 407/5-10. [Effective 1/1/2014] Definitions

As used in this Act:

"Advertisement" means any written, oral, or electronic communication that contains a promotion, inducement, or offer to conduct an auction or offer to provide an auction service, including but not limited to brochures, pamphlets, radio and television scripts, telephone and direct mail solicitations, electronic media, and other means of promotion.

"Advisory Board" or "Board" means the Auctioneer Advisory Board.

"Associate auctioneer" means a person who conducts an auction, but who is under the direct supervision of, and is sponsored by, a licensed auctioneer or auction firm.

"Auction" means the sale or lease of property, real or personal, by means of exchanges between an auctioneer and prospective purchasers or lessees, which consists of a series of invitations for offers made by the auctioneer and offers by prospective purchasers or lessees for the purpose of obtaining an acceptable offer for the sale or lease of the property, including the sale or lease of property via mail, telecommunications, or the Internet.

"Auction contract" means a written agreement between an auctioneer or auction firm and a seller or sellers.

"Auction firm" means any corporation, partnership, or limited liability company that acts as an auctioneer and provides an auction service.

"Auction school" means any educational institution, public or private, which offers a curriculum of auctioneer education and training approved by the Department.

"Auction service" means the service of arranging, managing, advertising, or conducting auctions.

"Auctioneer" means a person or entity who, for another, for a fee, compensation, commission, or any other valuable consideration at auction or with the intention or expectation of receiving valuable consideration by the means of or process of an auction or sale at auction or providing an auction service, offers, negotiates, or attempts to negotiate an auction contract, sale, purchase, or exchange of goods, chattels, merchandise, personal property, real property, or any commodity that may be lawfully kept or offered for sale by or at auction.

"Address of Record" means the designated address recorded by the Department in the applicant's or licensee's application file or license file maintained by the Department. It is the duty of the applicant or licensee to inform the Department of any change of address, and such changes must be made either through the Department's website or by directly contacting the Department.

"Buyer premium" means any fee or compensation paid by the successful purchaser of property sold or leased at or by auction, to the auctioneer, auction firms, seller, lessor, or other party to the transaction, other than the purchase price.

"Department" means the Department of Financial and Professional Regulation.

"Goods" means chattels, movable goods, merchandise, or personal property or commodities of any form or type that may be lawfully kept or offered for sale.

"Licensee" means any person licensed under this Act.

"Managing auctioneer" means any person licensed as an auctioneer who manages and supervises licensees sponsored by an auction firm or auctioneer.

"Person" means an individual, association, partnership, corporation, or limited liability company or the officers, directors, or employees of the same.

"Pre-renewal period" means the 24 months prior to the expiration date of a license issued under this Act.

"Real estate" means real estate as defined in Section 1-10 of the Real Estate License Act of 2000 or its successor Acts.

"Secretary" means the Secretary of the Department of Financial and Professional Regulation or his or her designee.

"Sponsoring auctioneer" means the auctioneer or auction firm who has issued a sponsor card to a licensed auctioneer.

"Sponsor card" means the temporary permit issued by the sponsoring auctioneer certifying that the licensee named thereon is employed by or associated with the sponsoring auctioneer and the sponsoring auctioneer shall be responsible for the actions of the sponsored licensee.

Cite as 225 ILCS 407/5-10

History. Amended by P.A. 098-0553, §5, eff. 1/1/2014.

Amended by P.A. 096-0730, §20, eff. 8/25/2009.

Amended by P.A. 095-0572, §5, eff. 6/1/2008.

P.A. 91-603, eff. 1-1-00; 92-16, eff. 6-28-01.

Note: This section is set out twice. See also 225 ILCS 407/5-10, effective until 1/1/2014.

Illinois Compiled Statutes
Regulation
Chapter 225. Professions and Occupations
Service and Sales
Act 407. Auction License Act
Article 10. Licensing Provisions
Current through P.A. 98-0604 (2013-2014)
§ 225 ILCS 407/10-1. [Section scheduled to be repealed effective 1/1/2020] Necessity of license; exemptions

(a)     It is unlawful for any person, corporation, limited liability company, partnership, or other entity to conduct an auction, provide an auction service, hold himself or herself out as an auctioneer, or advertise his or her services as an auctioneer in the State of Illinois without a license issued by the Department under this Act, except at:
(1)     an auction conducted solely by or for a not-for-profit organization for charitable purposes in which the individual receives no compensation ;
(2)     an auction conducted by the owner of the property, real or personal;
(3)     an auction for the sale or lease of real property conducted by a licensee under the Real Estate License Act, or its successor Acts, in accordance with the terms of that Act;
(4)     an auction conducted by a business registered as a market agency under the federal Packers and Stockyards Act (7 U.S.C. 181 et seq.) or under the Livestock Auction Market Law;
(5)     an auction conducted by an agent, officer, or employee of a federal agency in the conduct of his or her official duties; and
(6)     an auction conducted by an agent, officer, or employee of the State government or any political subdivision thereof performing his or her official duties.
(b)     Nothing in this Act shall be construed to apply to a new or used vehicle dealer or a vehicle auctioneer licensed by the Secretary of State of Illinois, or to any employee of the licensee, who is a resident of the State of Illinois, while the employee is acting in the regular scope of his or her employment for the licensee while conducting an auction that is not open to the public, provided that only new or used vehicle dealers, rebuilders, automotive parts recyclers, or scrap processors licensed by the Secretary of State or licensed by another state or jurisdiction may buy property at the auction, or to sales by or through the licensee. Out-of-state salvage vehicle buyers licensed in another state or jurisdiction may also buy property at the auction.
(c)     Nothing in this Act shall be construed to prohibit a person under the age of 18 from selling property under $250 in value while under the direct supervision of a licensed auctioneer.
(d)     Nothing in this Act, except Section 10-27, shall be construed to apply to a person while providing an Internet auction listing service as defined in Section 10-27.
Cite as 225 ILCS 407/10-1

History. Amended by P.A. 096-0730, §20, eff. 8/25/2009.

Amended by P.A. 095-0783, §5, eff. 1/1/2009.

Amended by P.A. 095-0572, §5, eff. 6/1/2008.

P.A. 91-603, eff. 1-1-00; 92-798, eff. 8-15-02.

§ 225 ILCS 407/10-5. [Section scheduled to be repealed effective 1/1/2020] Requirements for auctioneer license; application

Every person who desires to obtain an auctioneer license under this Act shall:

(1)     apply to the Department on forms provided by the Department accompanied by the required fee;
(2)     be at least 18 years of age;
(3)     have attained a high school diploma or successfully completed an equivalent course of study determined by an examination conducted by the Illinois State Board of Education;
(4)     pass a written examination authorized by the Department to prove competence, including but not limited to general knowledge of Illinois and federal laws pertaining to personal property contracts, auctions, real property, ethics, and other topics relating to the auction business; and
(5)     submit to the Department a properly completed 45-Day Permit Sponsor Card on forms provided by the Department .
Cite as 225 ILCS 407/10-5

History. Amended by P.A. 095-0572, §5, eff. 6/1/2008.

P.A. 91-603, eff. 1-1-00.

§ 225 ILCS 407/10-15. [Repealed]

Cite as 225 ILCS 407/10-15

History. Repealed by P.A. 096-0730, §25, eff. 8/25/2009.

Prior History: (Amended by P.A. 095-0572, §5, eff. 6/1/2008.)

(P.A. 91-603, eff. 1-1-00.)

§ 225 ILCS 407/10-15a. Associate Auctioneer License; Discontinuance

(a)     Upon the effective date of this amendatory Act of the 96th General Assembly, the Department shall no longer issue or renew any associate auctioneer license.
(b)     Any person who holds a valid license as an associate auctioneer on the effective date of this amendatory Act of the 96th General Assembly shall be issued an auctioneer license without having to apply to the Department or pay any fee. Such licensee's previous record as an associate auctioneer, including any past discipline imposed on him or her, shall become part of his or her auctioneer license record. The expiration date of such licensee's auctioneer license shall be the same as the expiration date of his or her associate auctioneer license.
(c)     Upon receipt of an auctioneer license issued by the Department pursuant to this Section, a licensee's associate auctioneer license shall no longer be valid.
Cite as 225 ILCS 407/10-15a

History. Added by P.A. 096-0730, §20, eff. 8/25/2009.

§ 225 ILCS 407/10-20. [Section scheduled to be repealed effective 1/1/2020] Requirements for auction firm license; application

Any corporation, limited liability company, or partnership who desires to obtain an auction firm license shall:

(1)     apply to the Department on forms provided by the Department accompanied by the required fee;
(2)     provide evidence to the Department that the auction firm has a properly licensed managing auctioneer ; and
(3)     any requirement as defined by rule.
Cite as 225 ILCS 407/10-20

History. Amended by P.A. 096-0730, §20, eff. 8/25/2009.

Amended by P.A. 095-0572, §5, eff. 6/1/2008.

P.A. 91-603, eff. 1-1-00.

§ 225 ILCS 407/10-25. [Repealed]

Cite as 225 ILCS 407/10-25

History. Repealed by P.A. 096-0730, §25, eff. 8/25/2009.

Prior History: (P.A. 91-603, eff. 1-1-00.)

(Repealed by P.A. 095-0572, §10, eff. 6/1/2008.)

§ 225 ILCS 407/10-27. [Section scheduled to be repealed effective 1/1/2020] Registration of Internet Auction Listing Service

(a)     For the purposes of this Section:
(1)     "Internet Auction Listing Service" means a website on the Internet, or other interactive computer service that is designed to allow or advertised as a means of allowing users to offer personal property or services for sale or lease to a prospective buyer or lessee through an on-line bid submission process using that website or interactive computer service and that does not examine, set the price, or prepare the description of the personal property or service to be offered, or in any way utilize the services of a natural person as an auctioneer.
(2)     "Interactive computer service" means any information service, system, or access software provider that provides or enables computer access by multiple users to a computer server, including specifically a service or system that provides access to the Internet.
(b)     It is unlawful for any person, corporation, limited liability company, partnership, or other entity to provide an Internet auction listing service in the State of Illinois for compensation without being registered with the Department when:
(1)     the person, corporation, limited liability company, partnership, or other entity providing the Internet auction listing service is located in the State of Illinois;
(2)     the prospective seller or seller, prospective lessor or lessor, or prospective purchaser or purchaser is located in the State of Illinois and is required to agree to terms with the person, corporation, limited liability company, partnership, or other entity providing the Internet auction listing service, no matter where that person, corporation, limited liability company, partnership, or other entity is located; or
(3)     the personal property or services offered for sale or lease are located or will be provided in the State of Illinois.
(c)     Any person, corporation, limited liability company, partnership, or other entity that provides an Internet auction listing service in the State of Illinois for compensation under any of the circumstances listed in subsection (b) shall register with the Department on forms provided by the Department accompanied by the required fee as provided by rule. Such registration shall include information as required by the Department and established by rule as the Department deems necessary to enable users of the Internet auction listing service in Illinois to identify the entity providing the service and to seek redress or further information from such entity. The fee shall be sufficient to cover the reasonable costs of the Department in administering and enforcing the provisions of this Section. The registrant shall be required to certify:
(1)     that the registrant does not act as the agent of users who sell items on its website, and acts only as a venue for user transactions;
(2)     that the registrant requires sellers and bidders to register with the website and provide their name, address, telephone number and e-mail address;
(3)     that the registrant retains such information for a period of at least 2 years;
(4)     that the registrant retains transactional information consisting of at least seller identification, high bidder identification, and item sold for at least 2 years from the close of a transaction, and has a mechanism to identify all transactions involving a particular seller or buyer;
(5)     that the registrant has a mechanism to receive complaints or inquiries from users;
(6)     that the registrant adopts and reasonably implements a policy of suspending, in appropriate circumstances, the accounts of users who, based on the registrant's investigation, are proven to have engaged in a pattern of activity that appears to be deliberately designed to defraud consumers on the registrant's website; and
(7)     that the registrant will comply with the Department and law enforcement requests for stored data in its possession, subject to the requirements of applicable law.
(d)     The Department may refuse to accept a registration which is incomplete or not accompanied by the required fee. The Department may impose a civil penalty not to exceed $10,000 upon any Internet auction listing service that intentionally fails to register as required by this Section, and may impose such penalty or revoke, suspend, or place on probation or administrative supervision the registration of any Internet auction listing service that:
(1)     intentionally makes a false or fraudulent material representation or material misstatement or misrepresentation to the Department in connection with its registration, including in the certification required under subsection (c);
(2)     is convicted of any crime, an essential element of which is dishonesty, fraud, larceny, embezzlement, or obtaining money, property, or credit by false pretenses or by means of a confidence game; or is convicted in this or another state of a crime that is a felony under the laws of this State; or is convicted of a felony in a federal court;
(3)     is adjudged to be a person under legal disability or subject to involuntary admission or to meet the standard for judicial admission as provided in the Mental Health and Developmental Disabilities Code;
(4)     has been subject to discipline by another state, the District of Columbia, a territory of the United States, a foreign nation, a governmental agency, or any other entity authorized to impose discipline if at least one of the grounds for that discipline is the same as or equivalent to one of the grounds for discipline set forth in this Section or for failing to report to the Department, within 30 days, any adverse final action taken against the registrant by any other licensing or registering jurisdiction, government agency, law enforcement agency, or court, or liability for conduct that would constitute grounds for action as set forth in this Section;
(5)     fails to make available to the Department personnel during normal business hours all records and related documents maintained in connection with the activities subject to registration under this Section;
(6)     makes or files false records or reports in connection with activities subject to registration, including but not limited to false records or reports filed with State agencies;
(7)     fails to provide information within 30 days in response to a written request made by the Department to a person designated in the registration for receipt of such requests; or
(8)     fails to perform any act or procedure described in subsection (c) of this Section.
(e)     Registrations issued pursuant to this Section shall be defined by rule . A registrant shall submit a renewal application to the Department on forms provided by the Department along with the required fee as established by rule.
(f)     Operating an Internet auction listing service under any of the circumstances listed in subsection (b) without being currently registered under this Section is declared to be adverse to the public welfare, to constitute a public nuisance, and to cause irreparable harm to the public welfare. The Secretary, the Attorney General of the State of Illinois, the State's Attorney of any county in the State, or any other person may maintain an action and apply for injunctive relief in any circuit court to enjoin the person or entity from engaging in such practice.
(g)     The provisions of Sections 20-25, 20-30, 20-35, 20-40, 20-50, 20-55, 20-60 and 20-75 of this Act shall apply to any actions of the Department exercising its authority under subsection (d) as if a person required to register under this Section were a person holding or claiming to hold a license under this Act.
(h)     The Department shall have the authority to adopt such rules as may be necessary to implement or interpret the provisions of this Section.
Cite as 225 ILCS 407/10-27

History. Amended by P.A. 096-0730, §20, eff. 8/25/2009.

Amended by P.A. 095-0572, §5, eff. 6/1/2008.

P.A. 92-798, eff. 8-15-02.

§ 225 ILCS 407/10-30. [Section scheduled to be repealed effective 1/1/2020] Expiration, renewal, and continuing education

(a)     License expiration dates, renewal periods, renewal fees, and procedures for renewal of licenses issued under this Act shall be set by rule of the Department. An entity may renew its license by paying the required fee and by meeting the renewal requirements adopted by the Department under this Section.
(b)     All renewal applicants must provide proof as determined by the Department of having met the continuing education requirements set forth by the Department by rule. At a minimum, the rules shall require an applicant for renewal licensure as an auctioneer to provide proof of the completion of at least 12 hours of continuing education during the pre-renewal period preceding the expiration date of the license from schools approved by the Department, as established by rule.
(c)     The Department, in its discretion, may waive enforcement of the continuing education requirements of this Section and shall adopt rules defining the standards and criteria for such waiver.
(d)     (Blank).
Cite as 225 ILCS 407/10-30

History. Amended by P.A. 096-0730, §20, eff. 8/25/2009.

Amended by P.A. 095-0572, §5, eff. 6/1/2008.

P.A. 91-603, eff. 1-1-00.

§ 225 ILCS 407/10-35. [Section scheduled to be repealed effective 1/1/2020] Completed 45-day permit sponsor card; termination by sponsoring auctioneer; inoperative status

(a)     No auctioneer shall conduct an auction or provide an auction service without being properly sponsored by a licensed auctioneer or auction firm.
(b)     The sponsoring auctioneer or sponsoring auction firm shall prepare upon forms provided by the Department and deliver to each auctioneer employed by or associated with the sponsoring auctioneer or sponsoring auction firm a properly completed duplicate 45-day permit sponsor card certifying that the person whose name appears thereon is in fact employed by or associated with said sponsoring auctioneer or sponsoring auction firm. The sponsoring auctioneer or sponsoring auction firm shall send the original 45-day permit sponsor card, along with a valid terminated license or other authorization as provided by rule and the appropriate fee, to the Department within 24 hours after the issuance of the sponsor card. It is a violation of this Act for any sponsoring auctioneer or sponsoring auction firm to issue a sponsor card to any auctioneer or applicant, unless the auctioneer or applicant presents in hand a valid terminated license or other authorization, as provided by rule.
(c)     An auctioneer may be self-sponsored or may be sponsored by another licensed auctioneer or auction firm.
(d)     (Blank).
(e)     When an auctioneer terminates his or her employment or association with a sponsoring auctioneer or sponsoring auction firm or the employment or association is terminated by the sponsoring auctioneer or sponsoring auction firm, the terminated licensee shall obtain from that sponsoring auctioneer or sponsoring auction firm his or her license endorsed by the sponsoring auctioneer or sponsoring auction firm indicating the termination. The terminating sponsoring auctioneer or sponsoring auction firm shall send a copy of the terminated license within 5 days after the termination to the Department or shall notify the Department in writing of the termination and explain why a copy of the terminated license was not surrendered.
(f)     The license of any auctioneer whose association with a sponsoring auctioneer or sponsoring auction firm has terminated shall automatically become inoperative immediately upon such termination, unless the terminated licensee accepts employment or becomes associated with a new sponsoring auctioneer or sponsoring auction firm pursuant to subsection (g) of this Section. An inoperative licensee under this Act shall not conduct an auction or provide auction services while the license is in inoperative status.
(g)     When a terminated or inoperative auctioneer accepts employment or becomes associated with a new sponsoring auctioneer or sponsoring auction firm, the new sponsoring auctioneer or sponsoring auction firm shall send to the Department a properly completed 45-day permit sponsor card, the terminated license, and the appropriate fee.
Cite as 225 ILCS 407/10-35

History. Amended by P.A. 096-0730, §20, eff. 8/25/2009.

Amended by P.A. 095-0572, §5, eff. 6/1/2008.

P.A. 91-603, eff. 1-1-00.

§ 225 ILCS 407/10-40. [Section scheduled to be repealed effective 1/1/2020] Restoration

(a)     A licensee whose license has lapsed or expired shall have 2 years from the expiration date to restore his or her license without examination. The expired licensee shall make application to the Department on forms provided by the Department, including a properly completed 45-day permit sponsor card, provide evidence of successful completion of 12 hours of approved continuing education during the period of time the license had lapsed, and pay all fees and penalties as established by rule.
(b)     Notwithstanding any other provisions of this Act to the contrary, any licensee whose license under this Act has expired is eligible to restore such license without paying any lapsed fees and penalties provided that the license expired while the licensee was:
(1)     on active duty with the United States Army, United States Marine Corps, United States Navy, United States Air Force, United States Coast Guard, the State Militia called into service or training;
(2)     engaged in training or education under the supervision of the United States prior to induction into military service; or
(3)     serving as an employee of the Department, while the employee was required to surrender his or her license due to a possible conflict of interest.
A licensee shall be eligible to restore a license under the provisions of this subsection for a period of 2 years following the termination of the service, education, or training by providing a properly completed application and 45-day permit sponsor card, provided that the termination was by other than dishonorable discharge and provided that the licensee furnishes the Department with an affidavit specifying that the licensee has been so engaged.

(c)     At any time after the suspension, revocation, placement on probationary status, or other disciplinary action taken under this Act with reference to any license, the Department may restore the license to the licensee without examination upon the order of the Secretary, if the licensee submits a properly completed application and 45-day permit sponsor card, pays appropriate fees, and otherwise complies with the conditions of the order.
Cite as 225 ILCS 407/10-40

History. Amended by P.A. 096-0730, §20, eff. 8/25/2009.

Amended by P.A. 095-0572, §5, eff. 6/1/2008.

Amended by P.A. 095-0331, §745, eff. 8/21/2007.

P.A. 91-603, eff. 1-1-00.

§ 225 ILCS 407/10-45. [Section scheduled to be repealed effective 1/1/2020] Nonresident auctioneer reciprocity

(a)     A person holding a license to engage in auctions issued to him or her by the proper authority of a state, territory, or possession of the United States of America or the District of Columbia that has licensing requirements equal to or substantially equivalent to the requirements of this State and that otherwise meets the requirements of this Act may obtain a license under this Act without examination, provided:
(1)     that the Department has entered into a valid reciprocal agreement with the proper authority of the state, territory, or possession of the United States of America or the District of Columbia from which the nonresident applicant has a valid license;
(2)     that the applicant provides the Department with a certificate of good standing from the applicant's state of licensure ;
(3)     that the applicant completes and submits an application as provided by the Department; and
(4)     that the applicant pays all applicable fees required under this Act.
(b)     A nonresident applicant shall file an irrevocable consent with the Department that actions may be commenced against the applicant or nonresident licensee in a court of competent jurisdiction in this State by the service of summons, process, or other pleading authorized by the law upon the Secretary. The consent shall stipulate and agree that service of the process, summons, or pleading upon the Secretary shall be taken and held in all courts to be valid and binding as if actual service had been made upon the applicant in Illinois. If a summons, process, or other pleading is served upon the Secretary, it shall be by duplicate copies, one of which shall be retained by the Department and the other immediately forwarded by certified or registered mail to the last known business address of the applicant or nonresident licensee against whom the summons, process, or other pleading may be directed.
Cite as 225 ILCS 407/10-45

History. Amended by P.A. 096-0730, §20, eff. 8/25/2009.

Amended by P.A. 095-0572, §5, eff. 6/1/2008.

P.A. 91-603, eff. 1-1-00.

§ 225 ILCS 407/10-50. Fees; Disposition of Funds

(a)     The Department shall establish by rule a schedule of fees for the administration and maintenance of this Act. Such fees shall be nonrefundable.
(b)     All fees collected under this Act shall be deposited into the General Professions Dedicated Fund and appropriated to the Department for the ordinary and contingent expenses of the Department in the administration of this Act.
Cite as 225 ILCS 407/10-50

History. Amended by P.A. 096-0730, §20, eff. 8/25/2009.

Amended by P.A. 095-0572, §5, eff. 6/1/2008.

P.A. 91-603, eff. 1-1-00.

Illinois Compiled Statutes
Regulation
Chapter 225. Professions and Occupations
Service and Sales
Act 407. Auction License Act
Article 15. Business Practices Provisions
Current through P.A. 98-0604 (2013-2014)
§ 225 ILCS 407/15-5. Representations

An auctioneer or auction firm , or the sponsored licensees, agents, or employees of an auctioneer or auction firm, conducting an auction or providing an auction service shall not:

(1)     misrepresent a fact material to a purchaser's decision to buy at or by auction;
(2)     predict specific or immediate increases in the value of any item offered for sale at auction; or
(3)     materially misrepresent the qualities or characteristics of any item offered for sale at auction.
Cite as 225 ILCS 407/15-5

History. Amended by P.A. 096-0730, §20, eff. 8/25/2009.

P.A. 91-603, eff. 1-1-00.

§ 225 ILCS 407/15-10. Auction contract

Any auctioneer or auction firm shall not conduct an auction or provide an auction service, unless the auctioneer or auction firm enters into a written auction contract with the seller of any property at auction prior to the date of the auction. Any agreement shall state whether the auction is with reserve or absolute. The agreement shall be signed by the auctioneer or auction firm conducting an auction or providing an auction service and the seller or sellers, or the legal agent of the seller or sellers of the property to be offered at or by auction, and shall include, but not be limited to the following disclosures:

(1)     Licensees shall disclose:
(A)     the name, license number, business address, and phone number of the auctioneer or auction firm conducting an auction or providing an auction service;
(B)     the fee to be paid to the auctioneer or auction firm for conducting an auction or providing an auction service;
(C)     an estimate of the advertising costs that shall be paid by the seller or sellers of property at auction and a disclosure that, if the actual advertising costs exceeds 120% of the estimated advertising cost, the auctioneer or auction firm shall pay the advertising costs that exceed 120% of the estimated advertising costs or shall have the seller or sellers agree in writing to pay for the actual advertising costs in excess of 120% of the estimated advertising costs; and
(D)     the buyer premium and the party to the transaction that receives it.
(2)     Sellers shall disclose:
(A)     the name, address, and phone number of the seller or sellers or the legal agent of the seller or sellers of property to be sold at auction; and
(B)     any mortgage, lien, easement, or encumbrance of which the seller has knowledge on any property or goods to be sold or leased at or by auction.
Cite as 225 ILCS 407/15-10

History. Amended by P.A. 096-1000, §475, eff. 7/2/2010.

Amended by P.A. 096-0730, §20, eff. 8/25/2009.

P.A. 91-603, eff. 1-1-00.

§ 225 ILCS 407/15-15. Supervisory duties

The sponsoring auctioneer, auction firm, and managing auctioneer shall have the duty and responsibility to supervise, manage, and control any sponsored licensee, agent, or employee while conducting an auction or providing an auction service. Any violation of this Act by a sponsored licensee, agent, or employee of a sponsoring auctioneer, auction firm, or managing auctioneer shall be deemed to be a violation by the sponsoring auctioneer, auction firm, or managing auctioneer as well as by the sponsored licensee, agent, or employee.

Cite as 225 ILCS 407/15-15

History. P.A. 91-603, eff. 1-1-00.

§ 225 ILCS 407/15-20. [Repealed]

Cite as 225 ILCS 407/15-20

History. Repealed by P.A. 096-0730, §25, eff. 8/25/2009.

Prior History: (P.A. 91-603, eff. 1-1-00.)

§ 225 ILCS 407/15-25. Auction firm

No corporation, limited liability company, or partnership shall be licensed without being managed by a licensed auctioneer. The managing auctioneer of any auction firm shall be responsible for the actions of all licensed and unlicensed employees, agents, and representatives of said auction firm while the firm is conducting an auction or providing an auction service.

Cite as 225 ILCS 407/15-25

History. P.A. 91-603, eff. 1-1-00.

Illinois Compiled Statutes
Regulation
Chapter 225. Professions and Occupations
Service and Sales
Act 407. Auction License Act
Article 20. Disciplinary Provisions
Current through P.A. 98-0604 (2013-2014)
§ 225 ILCS 407/20-5. Unlicensed practice; civil penalty

(a)     Any person who practices, offers to practice, attempts to practice, or holds oneself out to practice as an auctioneer, an auction firm, or any other licensee under this Act without being licensed under this Act shall, in addition to any other penalty provided by law, pay a civil penalty to the Department in an amount not to exceed $10,000 for each offense as determined by the Department. The civil penalty fine shall be assessed by the Department after a hearing is held in accordance with the provisions set forth in this Act regarding a hearing for the discipline of a license.
(b)     The Department has the authority and power to investigate any and all unlicensed activity pursuant to this Act.
(c)     The civil penalty shall be paid within 60 days after the effective date of the order imposing the civil penalty. The order shall constitute a judgment and may be filed and execution had thereon in the same manner from any court of record.
(d)     Conducting an auction or providing an auction service in Illinois without holding a valid and current license under this Act is declared to be adverse to the public welfare, to constitute a public nuisance, and to cause irreparable harm to the public welfare. The Secretary, the Attorney General, the State's Attorney of any county in the State, or any other person may maintain an action in the name of the People of the State of Illinois and may apply for injunctive relief in any circuit court to enjoin the person or entity from engaging in such practice.
Upon the filing of a verified petition in a circuit court, the court, if satisfied by affidavit or otherwise that the person or entity has been engaged in the practice of auctioning without a valid and current license, may enter a temporary restraining order without notice or bond enjoining the defendant from further practice. Only the showing of non-licensure, by affidavit or otherwise, is necessary in order for a temporary injunction to be issued. A copy of the verified complaint shall be served upon the defendant and the proceedings shall thereafter be conducted as in other civil cases except as modified by this Section. If it is established that the defendant has been or is engaged in unlawful practice, the court may enter an order or judgment perpetually enjoining the defendant from further practice. In all proceedings hereunder, the court, in its discretion, may apportion the costs among the parties interested in the action, including cost of filing the complaint, service of process, witness fees and expenses, court reporter charges, and reasonable attorneys' fees. In case of violation of any injunctive order entered under the provisions of this Section, the court may summarily try and punish the offender for contempt of court. These injunction proceedings shall be in addition to, and not in lieu of, all penalties and other remedies provided in this Act.

Cite as 225 ILCS 407/20-5

History. Amended by P.A. 096-0730, §20, eff. 8/25/2009.

Amended by P.A. 095-0572, §5, eff. 6/1/2008.

P.A. 91-603, eff. 1-1-00.

§ 225 ILCS 407/20-10. Violations

The commission of a single act prohibited by this Act or prohibited by the rules promulgated under this Act or a violation of a disciplinary order issued under this Act constitutes a violation of this Act.

Cite as 225 ILCS 407/20-10

History. P.A. 91-603, eff. 1-1-00.

§ 225 ILCS 407/20-15. [Effective Until 1/1/2014] Disciplinary actions; grounds

The Department may refuse to issue or renew a license, may place on probation or administrative supervision, suspend, or revoke any license or may reprimand or take other disciplinary or non-disciplinary action as the Department may deem proper, including the imposition of fines not to exceed $10,000 for each violation upon anyone licensed under this Act for any of the following reasons:

(1)     False or fraudulent representation or material misstatement in furnishing information to the Department in obtaining or seeking to obtain a license.
(2)     Violation of any provision of this Act or the rules promulgated pursuant to this Act.
(3)     Conviction of or entry of a plea of guilty or nolo contendere to any crime that is a felony under the laws of the United States or any state or territory thereof, or that is a misdemeanor , an essential element of which is dishonesty , or any crime that is directly related to the practice of the profession.
(4)     Being adjudged to be a person under legal disability or subject to involuntary admission or to meet the standard for judicial admission as provided in the Mental Health and Developmental Disabilities Code.
(5)     Discipline of a licensee by another state, the District of Columbia, a territory of the United States, a foreign nation, a governmental agency, or any other entity authorized to impose discipline if at least one of the grounds for that discipline is the same as or the equivalent to one of the grounds for discipline set forth in this Act or for failing to report to the Department, within 30 days, any adverse final action taken against the licensee by any other licensing jurisdiction, government agency, law enforcement agency, or court, or liability for conduct that would constitute grounds for action as set forth in this Act.
(6)     Engaging in the practice of auctioneering, conducting an auction, or providing an auction service without a license or after the license was expired, revoked, suspended, or terminated or while the license was inoperative.
(7)     Attempting to subvert or cheat on the auctioneer exam or any continuing education exam, or aiding or abetting another to do the same.
(8)     Directly or indirectly giving to or receiving from a person, firm, corporation, partnership, or association a fee, commission, rebate, or other form of compensation for professional service not actually or personally rendered , except that an auctioneer licensed under this Act may receive a fee from another licensed auctioneer from this State or jurisdiction for the referring of a client or prospect for auction services to the licensed auctioneer .
(9)     Making any substantial misrepresentation or untruthful advertising.
(10)     Making any false promises of a character likely to influence, persuade, or induce.
(11)     Pursuing a continued and flagrant course of misrepresentation or the making of false promises through a licensee, agent, employee, advertising, or otherwise.
(12)     Any misleading or untruthful advertising, or using any trade name or insignia of membership in any auctioneer association or organization of which the licensee is not a member.
(13)     Commingling funds of others with his or her own funds or failing to keep the funds of others in an escrow or trustee account.
(14)     Failure to account for, remit, or return any moneys, property, or documents coming into his or her possession that belong to others, acquired through the practice of auctioneering, conducting an auction, or providing an auction service within 30 days of the written request from the owner of said moneys, property, or documents.
(15)     Failure to maintain and deposit into a special account, separate and apart from any personal or other business accounts, all moneys belonging to others entrusted to a licensee while acting as an auctioneer, associate auctioneer, auction firm, or as a temporary custodian of the funds of others.
(16)     Failure to make available to Department personnel during normal business hours all escrow and trustee records and related documents maintained in connection with the practice of auctioneering, conducting an auction, or providing an auction service within 24 hours after a request from Department personnel.
(17)     Making or filing false records or reports in his or her practice, including but not limited to false records or reports filed with State agencies.
(18)     Failing to voluntarily furnish copies of all written instruments prepared by the auctioneer and signed by all parties to all parties at the time of execution.
(19)     Failing to provide information within 30 days in response to a written request made by the Department.
(20)     Engaging in any act that constitutes a violation of Section 2-102, 3-103, or 3-105 of the Illinois Human Rights Act.
(21)     (Blank) .
(22)     Engaging in dishonorable, unethical, or unprofessional conduct of a character likely to deceive, defraud, or harm the public.
(23)     Offering or advertising real estate for sale or lease at auction without a valid broker or salesperson's license under the Real Estate License Act of 1983, or any successor Act, unless exempt from licensure under the terms of the Real Estate License Act of 2000 , or any successor Act.
(24)     Inability to practice the profession with reasonable judgement, skill, or safety as a result of a physical illness, including, but not limited to, deterioration through the aging process or loss of motor skill, or a mental illness or disability.
(25)     A pattern of practice or other behavior that demonstrates incapacity or incompetence to practice under this Act.
(26)     Being named as a perpetrator in an indicated report by the Department of Children and Family Services under the Abused and Neglected Child Reporting Act and upon proof by clear and convincing evidence that the licensee has caused a child to be an abused child or a neglected child as defined in the Abused and Neglected Child Reporting Act.
(27)     Inability to practice with reasonable judgement, skill, or safety as a result of habitual or excessive use or addiction to alcohol, narcotics, stimulants, or any other chemical agent or drug.
(28)     Wilfully failing to report an instance of suspected child abuse or neglect as required by the Abused and Neglected Child Reporting Act.
The entry of an order by a circuit court establishing that any person holding a license under this Act is subject to involuntary admission or judicial admission, as provided for in the Mental Health and Developmental Disabilities Code, operates as an automatic suspension of that license. That person may have his or her license restored only upon the determination by a circuit court that the patient is no longer subject to involuntary admission or judicial admission and the issuance of an order so finding and discharging the patient and upon the Board's recommendation to the Department that the license be restored. Where circumstances so indicate, the Board may recommend to the Department that it require an examination prior to restoring a suspended license.

If the Department or Board finds an individual unable to practice because of the reasons set forth in this Section, the Department or Board may require that individual to submit to care, counseling, or treatment by physicians approved or designated by the Department or Board, as a condition, term, or restriction for continued, reinstated, or renewed licensure to practice; or, in lieu of care, counseling, or treatment, the Department may file, or the Board may recommend to the Department to file, a complaint to immediately suspend, revoke, or otherwise discipline the license of the individual. An individual whose license was granted, continued, reinstated, renewed, disciplined or supervised subject to such terms, conditions, or restrictions, and who fails to comply with such terms, conditions, or restrictions, shall be referred to the Secretary for a determination as to whether the individual shall have his or her license suspended immediately, pending a hearing by the Department. In instances in which the Secretary immediately suspends a person's license under this Section, a hearing on that person's license must be convened by the Department within 21 days after the suspension and completed without appreciable delay. The Department and Board shall have the authority to review the subject individual's record of treatment and counseling regarding the impairment to the extent permitted by applicable federal statutes and regulations safeguarding the confidentiality of medical records.

An individual licensed under this Act and affected under this Section shall be afforded an opportunity to demonstrate to the Department or Board that he or she can resume practice in compliance with acceptable and prevailing standards under the provisions of his or her license.

In enforcing this Section, the Department or Board, upon a showing of a possible violation, may compel an individual licensed to practice under this Act, or who has applied for licensure under this Act, to submit to a mental or physical examination, or both, as required by and at the expense of the Department. The Department or Board may order the examining physician to present testimony concerning the mental or physical examination of the licensee or applicant. No information shall be excluded by reason of any common law or statutory privilege relating to communications between the licensee or applicant and the examining physician. The examining physicians shall be specifically designated by the Board or Department. The individual to be examined may have, at his or her own expense, another physician of his or her choice present during all aspects of this examination. Failure of an individual to submit to a mental or physical examination when directed shall be grounds for suspension of his or her license until the individual submits to the examination, if the Department finds that, after notice and hearing, the refusal to submit to the examination was without reasonable cause.

Cite as 225 ILCS 407/20-15

History. Amended by P.A. 096-0730, §20, eff. 8/25/2009.

Amended by P.A. 095-0572, §5, eff. 6/1/2008.

P.A. 91-603, eff. 1-1-00.

Note: This section is set out twice. See also 225 ILCS 407/20-15, as amended by P.A. 098-0553, §5, eff. 1/1/2014.

§ 225 ILCS 407/20-15. [Effective 1/1/2014] Disciplinary actions; grounds

The Department may refuse to issue or renew a license, may place on probation or administrative supervision, suspend, or revoke any license or may reprimand or take other disciplinary or non-disciplinary action as the Department may deem proper, including the imposition of fines not to exceed $10,000 for each violation upon anyone licensed under this Act for any of the following reasons:

(1)     False or fraudulent representation or material misstatement in furnishing information to the Department in obtaining or seeking to obtain a license.
(2)     Violation of any provision of this Act or the rules promulgated pursuant to this Act.
(3)     Conviction of or entry of a plea of guilty or nolo contendere to any crime that is a felony under the laws of the United States or any state or territory thereof, or that is a misdemeanor, an essential element of which is dishonesty, or any crime that is directly related to the practice of the profession.
(4)     Being adjudged to be a person under legal disability or subject to involuntary admission or to meet the standard for judicial admission as provided in the Mental Health and Developmental Disabilities Code.
(5)     Discipline of a licensee by another state, the District of Columbia, a territory of the United States, a foreign nation, a governmental agency, or any other entity authorized to impose discipline if at least one of the grounds for that discipline is the same as or the equivalent to one of the grounds for discipline set forth in this Act or for failing to report to the Department, within 30 days, any adverse final action taken against the licensee by any other licensing jurisdiction, government agency, law enforcement agency, or court, or liability for conduct that would constitute grounds for action as set forth in this Act.
(6)     Engaging in the practice of auctioneering, conducting an auction, or providing an auction service without a license or after the license was expired, revoked, suspended, or terminated or while the license was inoperative.
(7)     Attempting to subvert or cheat on the auctioneer exam or any continuing education exam, or aiding or abetting another to do the same.
(8)     Directly or indirectly giving to or receiving from a person, firm, corporation, partnership, or association a fee, commission, rebate, or other form of compensation for professional service not actually or personally rendered, except that an auctioneer licensed under this Act may receive a fee from another licensed auctioneer from this State or jurisdiction for the referring of a client or prospect for auction services to the licensed auctioneer.
(9)     Making any substantial misrepresentation or untruthful advertising.
(10)     Making any false promises of a character likely to influence, persuade, or induce.
(11)     Pursuing a continued and flagrant course of misrepresentation or the making of false promises through a licensee, agent, employee, advertising, or otherwise.
(12)     Any misleading or untruthful advertising, or using any trade name or insignia of membership in any auctioneer association or organization of which the licensee is not a member.
(13)     Commingling funds of others with his or her own funds or failing to keep the funds of others in an escrow or trustee account.
(14)     Failure to account for, remit, or return any moneys, property, or documents coming into his or her possession that belong to others, acquired through the practice of auctioneering, conducting an auction, or providing an auction service within 30 days of the written request from the owner of said moneys, property, or documents.
(15)     Failure to maintain and deposit into a special account, separate and apart from any personal or other business accounts, all moneys belonging to others entrusted to a licensee while acting as an auctioneer, associate auctioneer, auction firm, or as a temporary custodian of the funds of others.
(16)     Failure to make available to Department personnel during normal business hours all escrow and trustee records and related documents maintained in connection with the practice of auctioneering, conducting an auction, or providing an auction service within 24 hours after a request from Department personnel.
(17)     Making or filing false records or reports in his or her practice, including but not limited to false records or reports filed with State agencies.
(18)     Failing to voluntarily furnish copies of all written instruments prepared by the auctioneer and signed by all parties to all parties at the time of execution.
(19)     Failing to provide information within 30 days in response to a written request made by the Department.
(20)     Engaging in any act that constitutes a violation of Section 2-102, 3-103, or 3-105 of the Illinois Human Rights Act.
(21)     (Blank).
(22)     Engaging in dishonorable, unethical, or unprofessional conduct of a character likely to deceive, defraud, or harm the public.
(23)     Offering or advertising real estate for sale or lease at auction without a valid broker or managing broker's license under the Real Estate License Act of 1983, or any successor Act, unless exempt from licensure under the terms of the Real Estate License Act of 2000, or any successor Act, except as provided for in Section 5-32 of the Real Estate License Act of 2000.
(24)     Inability to practice the profession with reasonable judgment, skill, or safety as a result of a physical illness, including, but not limited to, deterioration through the aging process or loss of motor skill, or a mental illness or disability.
(25)     A pattern of practice or other behavior that demonstrates incapacity or incompetence to practice under this Act.
(26)     Being named as a perpetrator in an indicated report by the Department of Children and Family Services under the Abused and Neglected Child Reporting Act and upon proof by clear and convincing evidence that the licensee has caused a child to be an abused child or a neglected child as defined in the Abused and Neglected Child Reporting Act.
(27)     Inability to practice with reasonable judgment, skill, or safety as a result of habitual or excessive use or addiction to alcohol, narcotics, stimulants, or any other chemical agent or drug.
(28)     Wilfully failing to report an instance of suspected child abuse or neglect as required by the Abused and Neglected Child Reporting Act.
The entry of an order by a circuit court establishing that any person holding a license under this Act is subject to involuntary admission or judicial admission, as provided for in the Mental Health and Developmental Disabilities Code, operates as an automatic suspension of that license. That person may have his or her license restored only upon the determination by a circuit court that the patient is no longer subject to involuntary admission or judicial admission and the issuance of an order so finding and discharging the patient and upon the Board's recommendation to the Department that