Illinois Administrative Code on Profession and Occupation

Illinois Administrative Regulations dealing with definitions, auction license, continuing education and internet auction listing services of an auction and auctioneer are detailed below:

Illinois Administrative Code
Title 68. PROFESSIONS AND OCCUPATIONS
Part 1440. AUCTION LICENSE ACT
Subpart A. DEFINITIONS

§ 1440.10. Definitions

"Act" means the Auction License Act [225 ILCS 407 ].
"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. Pursuant to Section 1440.190 , it is the duty of the applicant or licensee to inform the Department of any change of address, and those changes must be made either through the Department's website or by directly contacting the Department.
"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 solicitation, electronic media, and other means of promotion.
"Advisory Board" or "Board" shall mean the Auctioneer Advisory Board.
"Auction" means the sale or lease or 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 or oral agreement between an auctioneer or an auction firm and a seller, sellers, lessor or lessors.
"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 Division.
"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 value consideration by the means of or process of an auction or sale at auction or providing an auctionservice, 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.
"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 firm, seller, lessor or other party to the transaction, other than the purchase price.
"Cashier" means a person who accepts, records and documents payments and information from bidders or prospective bidders, and performs other clerical services for and under the direct supervision of a licensed auctioneer or auction firm, while conducting an auction or providing an auctionservice.
"Clerk" means a person who records and documents information and performs other clerical services for and under the direct supervision of anauctioneer or an auction or providing an auction service.
"CE" means continuing education.
"Compensation" means the valuable consideration given by one person or entity to another person or entity in exchange for the performance of some activity or service. Compensation shall include the transfer of valuable consideration, including but not limited to:
commissions;
fees;
referral fees;
bonuses;
prizes;
merchandise;
finder fees;
performance of services;
coupons or gift certificates;
discounts;
rebates;
a chance to win a raffle, drawing, lottery, or similar game of chance not prohibited by any other law or statue;
retainer fee; or salary.
"Consignment Sale" means the sale or lease of property at an auction, whereby a person or entity takes temporary control, title or possession of the property to be sold or leased for the purpose of that person or entity to sell or lease the property, receive and distribute the proceeds of the sale or lease of the property. The person or entity who conducts a consignment sale auction shall not be exempt from licensure under the Act, except for those persons or entities who are other exempt from licensure, as provided by the Act and this Part.
"Department" means the Department of Financial and Professional Regulation.
"Director" means the Director of the Division of Professional Regulation with the authority delegated by the Secretary.
"Division" means the Department of Financial and Professional Regulation-Division of 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 the Act.
"Livestock Auctioneer" means an auctioneer licensed under the Act and employed by a business registered as a market agency under the federal Packers and Stockyards Act ( 7 USC 181 et seq.) or under the Livestock Auction Market Law [225 ILCS 640 ] who, by public outcry, sells livestock at the registered business.
"Managing Auctioneer" means any person licensed as an auctioneer who manages and supervises an auction firm and licensees sponsored by anauction firm or auctioneer.
"Person" shall mean an individual, association, partnership, corporation, 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 the Act.
"Ring Assistant" means a person who acknowledges a bid from a member of the audience during the sale or lease of property at an auction and conveys the bid to the auctioneer, but only the auctioneer may accept the bid for the sale or lease of property at auction.
"School" means a continuing education school approved and licensed in accordance with the Act and this Part.
"Secretary" means the Secretary of the Department of Financial and Professional Regulation.
"Sponsor Card" shall mean the temporary permit issued by the sponsoring auctioneer certifying that the licensee named is employed by or associated with the sponsoring auctioneer and the sponsoring auctioneer shall be responsible for the actions of the sponsored licensee.
"Sponsoring Auctioneer" means the auctioneer or auction firm who has issued a sponsor card to a licensed auctioneer.
"Terms and Conditions" means an announcement made orally or in written form at an auction sale, including but not limited to the condition of the property being sold or leased, the type of payment expected from the purchaser, when payment is expected from the purchaser, when possession, control and ownership of the property being sold or leased passes to the purchaser, and any other information that is pertinent to the auction.
Source:
Amended at 35 Ill. Reg. 7358, effective April 21, 2011

Subpart B. AUCTION LICENSE

§ 1440.100. Necessity of License; Exemptions

Any person, corporation, limited liability company, partnership, or other entity shall not be required to be licensed under the Act under the following circumstances:
a) A not-for-profit organization conducting an auction solely for charitable purposes in which the individual receives no compensation;
b) A person or other entity who is the rightful owner of property, real or personal, sold or leased at auction, except for persons or entities who as a normal course of business sell or lease property at auction;
c) A person or entity, while conducting an auction for the sale or lease of real property, who holds a valid broker or salesperson license under the Real Estate License Act of 2000 [225 ILCS 454 ];
d) A business registered as a livestock market agency under the federal Packers and Stockyards Act ( 7 USC 181 et seq.) or under the Livestock Auction Market Law that employs licensed livestock auctioneers;
e) A vehicle dealer licensed by the Secretary of State of Illinois; any employee of that 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; or sales by or through the licensee;
f) A person under the age of 18 who, while under the direct supervision of a licensed auctioneer, sells items under $250 in value.
Source:
Amended at 35 Ill. Reg. 7358, effective April 21, 2011

§ 1440.110. Examination

a) Every person who makes application for a license as an auctioneer shall take and pass a written examination authorized by the Division.
b) Each applicant for an auctioneer license shall file an application for examination with the Division or its designated testing service. The application for examination shall include:
1) Certification that the applicant is 18 years of age; and
2) Certification of graduation from high school or equivalent (e.g., GED).
Source:
Amended at 35 Ill. Reg. 7358, effective April 21, 2011

§ 1440.120. Application for Auctioneer License and Auction Firm

a) Each applicant for an auctioneer license shall submit, on forms provided by the Division:
1) The applicant's name, address and telephone number;
2) The applicant's Social Security Number and date of birth;
the Division shall make available the applicant's Social Security Number only to the Illinois Department of Revenue to determine a tax delinquency, the Illinois Department of Healthcare and Family Services to determine a delinquency in court ordered child support payments, and the Illinois Student Assistance Commission (ISAC) to determine a delinquency for a student loan authorized by ISAC, or by subpoena;
3) Certification that the applicant is 18 years of age;
4) Certification of graduation from high school or equivalent (e.g., GED);
5) The fee as provided by Section 1440.170 of this Part;
6) A properly completed sponsor card issued in accordance with Section 10-35 of the Act and Section 1440.140 of this Part;
7) Proof of successful completion of the examination authorized by the Division, unless otherwise exempt from examination as provided by Section 10-45 (Nonresident Auctioneer Reciprocity) of the Act and Section 1440.160 of this Part; and
8) Any other information as required by the Division, including but not limited to personal history, criminal record, Illinois tax delinquency, Illinois student loan delinquency, court ordered child support delinquency, or other information used by the Division to determine an applicant's fitness for licensure.
b) A person who desires to conduct auctions, provide an auction service or practice auctioneering in the form of a partnership, corporation or limited liability company shall make application for an auction firm license on forms provided by the Division to the Division and shall include the following:
1) The applicant's name, address and telephone number;
2) The applicant's Federal Employer Identification Number or tax identification number; the Division shall make available an applicant's FEIN or tax identification number only to the Illinois Department of Revenue to determine a tax delinquency, or by subpoena;
3) A list of all officers, directors, and owners with percentage of ownership of the auction firm;
4) Articles of Incorporation or Organization, or other evidence of legal formation or authority to conduct business as approved by the Division;
5) Proof of a properly licensed managing auctioneer;
6) The fee as provided by Section 1440.170 of this Part;
7) All unlicensed officers shall submit affidavits of non-participation with the application; and
8) Any other information required by the Division, including but not limited to personal history, criminal record, Illinois tax delinquency, Illinois student loan delinquency, court ordered child support delinquency, or other information used by the Division to determine an applicant's fitness for licensure.
c) All information provided by an applicant to the Division is subject to audit by the Division within 5 years from the date in which the application was received by the Division.
d) All applicants for licensure have 3 years after the date of application to complete the application process. If the process has not been completed within 3 years after the date of application, the application shall be denied, the fee shall be forfeited, and the applicant must reapply and meet the requirements in effect at the time of reapplication.
Source:
Amended at 35 Ill. Reg. 7358, effective April 21, 2011

§ 1440.130. Application for Licensure, Practice Prior to the Act (Repealed)

Source:
Repealed at 33 Ill. Reg. 7077, effective May 14, 2009

§ 1440.140. 45 Day Permit Sponsor Card

a) A properly issued 45 Day Permit Sponsor Card shall serve as a temporary permit allowing the sponsored individual to engage in the practice of auctioneering for a period of 45 days after its issuance date only under the direct supervision of the sponsoring auctioneer or auction firm.
b) A sponsoring auctioneer or auction firm shall only execute a 45 Day Permit Sponsor Card to a sponsored individual upon presentation of:
1) A valid auctioneer examination passing score report from the Division or its designated testing vendor that states that the sponsoring auctioneer or auction firm may issue a 45 Day Permit Sponsor Card; or
2) An original terminated license, pursuant to Section 10-35 of the Act, endorsed by the sponsoring auctioneer or auction firm by whom the sponsored individual was previously sponsored or associated.
c) Upon issuance of a properly completed 45 Day Permit Sponsor Card:
1) The sponsoring auctioneer or auction firm shall send to the Division within 24 hours the original 45 Day Permit Sponsor Card, the original terminated license (if applicable), the original examination score report and initial application (if applicable), and the proper fee. If the sponsored individual is unable to obtain an original terminated license from his or her previous sponsoring auctioneer or auction firm, the sponsored individual shall prepare a sworn written statement as to why the terminated license is not submitted. The sponsoring auctioneer or auction firm shall submit the written statement in lieu of an original terminated license to the Division;
2) The sponsoring auctioneer or auction firm shall retain a copy of the 45 Day Permit Sponsor Card for its records; and
3) The sponsored individual shall retain a copy of the 45 Day Permit Sponsor Card and shall use it in lieu of a license until a license is issued by the Division, but not for a period in excess of 45 days after its issuance.
d) If a new license has not been issued by the Division within 45 days after the issuance of a 45 Day Permit Sponsor Card, the sponsored individual shall not practice auctioneering.
e) The Division may grant an extension of a 45 Day Permit Sponsor Card, but the extension must be requested in writing by the sponsoring auctioneer or auction firm.
f) If the Division denies any application in which a 45 Day Permit Sponsor Card was issued, the 45 Day Permit Sponsor Card shall be null and void upon written notice from the Division.
Source:
Amended at 35 Ill. Reg. 7358, effective April 21, 2011

§ 1440.145. Renewals

a) Every license and registration issued under the Act shall expire on December 31, 2010, and thereafter a license shall expire every 2 years on December 31 of each even-numbered year. The holder of a license or registration may renew the license by paying the fee required by Section1440.170 and meeting the continuing education requirements set forth in Section 1440.310 .
b) It is the responsibility of each licensee to notify the Division of any change of address. Failure to receive a renewal form from the Division shall not constitute an excuse for failure to pay the renewal fee and to renew one's license.
c) Practicing or operating on a license or registration that has expired or been placed on inactive status shall be considered unlicensed activity and shall be grounds for discipline pursuant to Section 20-15 of the Act.
Source:
Added at 33 Ill. Reg. 7077, effective May 14, 2009

§ 1440.150. Restoration of Lapsed or Expired License

a) A licensee whose license has lapsed or expired shall have 2 years from the date the license expired to restore his or her license without examination. The licensee whose license has expired shall make application on forms provided by the Division, which shall include the following:
1) The applicant's name, address and telephone number;
2) The applicant's Social Security Number and date of birth;
3) The applicant's license number;
4) The fees as provided by Section 1440.170 of this Part;
5) A properly completed 45 day permit sponsor card issued in accordance with Section 10-35 of the Act and Section 1440.140 of this Part;
6) Proof of successful completion of 12 hours of approved continuing education; and
7) Any other information as required by the Division, including but not limited to personal history, criminal record, Illinois tax delinquency, Illinois student loan delinquency, court ordered child support delinquency, or other information used by the Division to determine an applicant's fitness for licensure.
b) A licensee whose license has lapsed or expired for a period in excess of 2 years shall certify to successful completion of 12 hours of approved education within 6 months prior to making application, and meet the requirements of an initial applicant pursuant to Article 10 of the Act and this Part promulgated for the administration of the Act. The licensee shall make a restoration application on forms provided by the Division.
Source:
Amended at 33 Ill. Reg. 7077, effective May 14, 2009

§ 1440.160. Nonresident Auctioneer Reciprocity

a) A person holding a current license in good standing to conduct auctions, provide an auction service or engage in auctioneering in a jurisdiction in which the Division has a reciprocal agreement shall make application to the Division on forms provided by the Division that shall include the following:
1) The applicant's name, address and telephone number;
2) The applicant's Social Security Number and date of birth;
3) Certification that the applicant is 18 years of age;
4) Certification of graduation from high school or equivalent (e.g., GED);
5) The fee as provided by Section 10-50 of the Act and Section 1440.170 of this Part;
6) A properly completed sponsor card issued in accordance with Section 10-35 of the Act and Section 1440.140 of this Part;
7) A certification in writing that the nonresident applicant shall abide by all the provisions of the Act and this Part with respect to his or her auction activities within the State of Illinois and submit to the jurisdiction of the Division as provided in the Act and this Part; and
8) Any other information as required by the Division, including but not limited to personal history, criminal record, Illinois tax delinquency, Illinois student loan delinquency, court ordered child support delinquency, or other information used by the Division to determine an applicant's fitness for licensure.
b) A person holding a current nonresident license may become a resident licensee without examination should he or she become domiciled in the State of Illinois.
Source:
Amended at 35 Ill. Reg. 7358, effective April 21, 2011

§ 1440.170. Fees

a) The license application fee for an auctioneer for:
1) an initial license application shall be $200;
2) a renewal application shall be $225 per year;
3) a renewal application, with fee, that was postmarked after the expiration date of the license, shall be the renewal fee plus a $50 penalty;
4) a restoration application shall be all lapsed renewal application fees, not to exceed $675, plus a $50 penalty and $25 for a 45 Day Permit Sponsor Card;
5) a 45 Day Permit Sponsor Card application shall be $25; and
6) a duplicate license shall be $25.
b) The registration application fee for an internet auction listing service for:
1) an initial registration application shall be $200;
2) a renewal application shall be $225 per year;
3) a renewal application, with fee, that was postmarked after the expiration date of the license shall be the renewal fee plus a $50 penalty;
4) a restoration application shall be all lapsed renewal fees, not to exceed $675, plus a $50 penalty;
5) a duplicate registration shall be $25;
6) a certification of a registrant's record for any purpose shall be $25;
7) a roster of registrants shall be the cost of producing the roster;
8) a copy of any transcript of any proceedings shall be the cost to produce the transcript;
9) certifying any record, for example, a copy of a disciplinary order or application, shall be $1 per page.
c) The license application fee for an auction firm for:
1) an initial license application shall be $100;
2) a renewal application shall be calculated at the rate of $125 per year;
3) a renewal application, with fee, that was postmarked after the expiration date of the license shall be the renewal fee plus a $50 penalty;
4) a restoration application shall be all lapsed renewal fees, not to exceed $375, plus a $50 penalty;
5) a managing auctioneer change application shall be $25; and
6) a duplicate license shall be $25.
d) The license application fee for an auction school for:
1) an initial license application shall be $2,000;
2) a renewal application shall be $1,000 per year;
3) a renewal application, with fee, that was postmarked after the expiration date of the license shall be the renewal fee plus a $250 penalty; and
4) a duplicate license shall be $25.
e) The license application fee for an auction continuing education course shall be $50 per course. A duplicate course license shall be $25.
f) The fee for a certification of a licensee's record for any purpose shall be $25.
g) The fee for copies, license certification and other services shall be the cost of preparing and providing the same, as established by policy of the Division.
h) The fee for requesting a waiver of continuing education requirements pursuant to Section 10-30 of the Act and Section 1440.310(d)(2) of this Part shall be $25.
Source:
Amended at 35 Ill. Reg. 7358, effective April 21, 2011

§ 1440.180. Earnings from the Investment of Moneys in the General Professions Dedicated Fund

Pursuant to Section 30-13 of the Act, all earnings received from the investment of moneys deposited into the General Professions Dedicated Fund shall be deposited into the General Professions Dedicated Fund and shall be used for the same purposes as other moneys deposited into the General Professions Dedicated Fund.
Source:
Amended at 35 Ill. Reg. 7358, effective April 21, 2011

§ 1440.190. Address Change, Notification

Any licensee granted a license under the Act shall notify the Division in writing of any change of business or mailing address within 24 hours after the change. A licensee who fails to notify the Division in writing of any address change shall be responsible for any failure to comply with any notice sent to the licensee by the Division to the extent it may affect his or her license status or penalties assessed by the Division.
Source:
Amended at 33 Ill. Reg. 7077, effective May 14, 2009

§ 1440.200. Pocket Card

The Division shall issue, along with each license issued under the Act, a pocket card. All licensees shall carry the pocket card at all times and shall display it upon demand. If the licensee is operating on a properly issued 45 Day Permit Sponsor Card, the licensee shall carry a copy of the 45 Day Permit Sponsor Card in lieu of and until a pocket card is issued by the Division.
Source:
Amended at 33 Ill. Reg. 7077, effective May 14, 2009

§ 1440.210. Assumed Name

If a licensee operates under any name other than that appearing on his or her license, he or she shall submit to the Division a certified copy of his or her registration under the Assumed Business Name Act [805 ILCS 405 ] at the time of application or within 30 days after registration.
Source:
Amended at 33 Ill. Reg. 7077, effective May 14, 2009

§ 1440.220. Supervisory Duties

a) A sponsoring auctioneer, auction firm and managing auctioneer shall have the duty and be responsible to supervise, manage, and control any licensed auctioneer sponsored or managed by the sponsoring auctioneer, auction firm or managing auctioneer while conducting an auction, acting as an auctioneer or providing an auction service. In addition, a sponsoring auctioneer, auction firm and managing auctioneer shall have the duty and be responsible to supervise, manage, and control any unlicensed agent or employee while conducting an auction, acting as an auctioneer or providing an auction service. Any violation of the Act by a licensed or unlicensed employee or agent 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.
b) Only the managing and/or sponsoring auctioneer shall execute and issue a 45 Day Permit Sponsor Card and terminate a sponsored licensee's license.
Source:
Amended at 35 Ill. Reg. 7358, effective April 21, 2011

§ 1440.230. Advertising; Buyer Premium; Disclosure

a) For all advertising for a specific auction (including any print advertising, classified ads, display ads, sale bills, brochures, internet advertising, calendar ads and line ads paid for by a licensee or seller, and websites), a licensee shall clearly disclose the name of the sponsoring auctioneer or the sponsoring auctioneer's properly registered assumed business name. The name of a sponsored auctioneer may be included in the advertisement.
b) The disclosure requirements in subsection (a) do not apply to radio and television advertisements, institutional advertising, signs or calendars run by any publication for which payment is not made by a licensee or seller.
c) A licensee shall conspicuously post or deliver to all registered participants the complete terms and conditions of the auction. The licensee shall clearly announce before the auction the material terms and conditions necessary to understand the procedures for the auction, including but not limited to payment terms and removal and any changes to the posted or delivered terms and conditions. The terms and conditions shall include the material information necessary to understand the procedures for the auction, expressly including payment terms, and, if applicable, buyer registration and buyer premium charges.
d) If a licensee conducts an auction or provides an auction service in which a buyer premium is charged or collected, the licensee shall clearly disclose on any advertisement that there is a buyer premium charge and the terms of the buyer premium.
Source:
Amended at 33 Ill. Reg. 7077, effective May 14, 2009

§ 1440.240. Unlicensed Assistants

a) An unlicensed assistant shall include, but not be limited to, clerks, cashiers, clerical assistants, ring assistants and laborers.
b) An unlicensed assistant may, while under the direct supervision of, the sponsoring and/or managing auctioneer:
1) prepare, track and document information during the course of an auction, such as a description of the property being sold or leased, the buyer of the property, and the price bid and accepted on the property;
2) collect, accept, record and deposit moneys received from the sale or lease of property at an auction;
3) prepare, track, compute and document on forms (e.g., settlement sheets) information from the sale or lease of property at an auction and disburse funds to sellers;
4) secure and assemble documents and information for an auction contract and complete contract forms at the direction of the sponsoring and/or managing auctioneer;
5) draft and distribute advertising copy, fliers and promotional materials for an auction at the direction of the sponsoring and/or managing auctioneer;
6) perform bookkeeping activities;
7) monitor licenses and personnel files of licensed and unlicensed employees and agents;
8) acknowledge a bid from a member of the audience during the sale or lease of property at an auction and convey the bid to the auctioneer, but only the auctioneer may accept such bid for the sale or lease of property at an auction; and
9) move, handle and set up property to be sold or leased at auction at the direction of, and under the supervision of, the sponsoring and/or managing auctioneer.
c) An unlicensed assistant may not perform any activity other than those described in subsection (b) for which a license is required under the Act.
d) A non-resident employee of a vehicle dealer that is exempt from licensure under the Act and this Part, may perform the activities described in subsections (a) and (b) without requiring a license.
Source:
Amended at 35 Ill. Reg. 7358, effective April 21, 2011

§ 1440.250. Felony Convictions; Discipline of Other Professional License; Notification

a) A licensee who has a license issued pursuant to the Act or this Part shall notify the Division in writing within 30 days from the date of conviction for any crime described by Section 20-15(3) of the Act. In addition to the notice, the licensee shall provide to the Division the court record and documents involved with the conviction or other information as required by the Division to determine fitness for licensure.
b) A licensee who has had another license disciplined pursuant to Section 20-15(5) of the Act shall notify the Division in writing within 30 days after any adverse final order. In addition to the notice, the licensee shall provide to the Division the record and/or documents involved with the disciplinary action or other information as required by the Division to determine fitness for licensure.
Source:
Amended at 33 Ill. Reg. 7077, effective May 14, 2009

§ 1440.260. Advertising; Auction without Reserve; Absolute Auction

a) No advertisement or announcement for an "absolute auction" or "auction without reserve" shall include any terms or language regarding a minimum bid or minimum price.
b) No advertisement or announcement for an "absolute auction" or "auction without reserve" shall be issued unless:
1) there are no liens or encumbrances on the property to be sold other than current tax obligations, easements, or restrictions of record to any person other than the seller, unless every holder of each lien or encumbrance provides the auctioneer written evidence of a binding commitment that the liens or encumbrances shall be released immediately after the sale or at closing, without regard to the amount of the highest bid on the property or the identity of the high bidder; and
2) within the auction contract there is a binding written requirement that the seller, or agent of the seller, shall accept the highest bid, and transfer ownership of the property, without regard to the amount of the highest bid or the identity of the high bidder, and that the seller, or agent of the seller, shall not bid at the "absolute auction" or "auction without reserve", or otherwise participate in the bidding process.
Source:
Amended at 33 Ill. Reg. 7077, effective May 14, 2009

§ 1440.270. Escrow or Trust Accounts

a) For the purposes of the Act and this Part "escrow monies" means all monies, promissory note, legal tender or financial consideration entrusted to, held by, and deposited with an auctioneer or auction firm in consideration of property sold or leased by the auctioneer or auction firm for the benefit of the parties to the transaction.
b) Pursuant to Section 20-15 of the Act, licensees who accept escrow monies shall maintain and deposit in a special account, separate and apart from any personal or ordinary business accounts, all monies entrusted to the licensee while acting as an auctioneer, while conducting an auction or providing an auction service.
c) A licensee may maintain more than one special account or may elect to hold all escrow monies in one special account. A licensee who accepts escrow monies shall maintain a special account, and shall maintain a bookkeeping system in his or her office or place of business, including systems of electronic data processing, consisting of the following:
1) A record book, called a journal, for each special account, that shall show the chronological sequence in which escrow monies were received and disbursed by the licensee and a running balance after each entry;
2) For each auction, a deal file which contains clerk sheets and settlement sheets that correspond to journal entries;
3) A record or account ledger (e.g., check ledger) that shall show the date, amount of monies deposited into the special account, and date, amount and payee of any money disbursed from the special account; and
4) Bank statements for each special account shall be reconciled monthly within 10 days after the receipt of the bank statement, except where there has been no transactional activity during the previous month. The reconciliation shall include a written work sheet comparing the balances as shown on the bank statement, the journal and the ledger, respectively, in order to insure agreement between the special account and the journal and the ledger entries with respect to the special account. Each reconciliation shall be kept for at least three years from the last day of the month covered by the reconciliation.
d) A licensee who maintains any special account shall notify the Division in writing of the name and location of the depository in which the special accounts are held, and shall execute a written consent giving the Division the authority to examine and/or audit any or all special accounts.
e) The Division shall make available for distribution, on request, samples of approved bookkeeping systems.
f) A licensee shall not commingle any monies held for another in connection with the practice of auctioneering, conducting an auction, or providing an auction service with any personal account or normal business account. A licensee shall only deposit his or her own funds into the special accounts in which escrow monies are held to open the account or maintain a sufficient balance to avoid incurring service charges. In addition, a licensee shall not disburse monies from any special account for his own personal or business use, except for commissions, compensation, fees, advertising or other expenses incurred by the licensee pursuant to the terms of the auction listing contract.
g) A licensee shall deposit all escrow monies into the licensee's special account no later than the next business day following acceptance of the monies.
Source:
Amended at 35 Ill. Reg. 7358, effective April 21, 2011

§ 1440.280. Termination for Failure to Pay Taxes, Child Support or Student Loan

a) If the Division receives information that a licensee who has been issued a license under the Act has failed to pay or is more than 30 days in arrearage on taxes, court ordered child support or a student loan pursuant to Section 20-20 of the Act, the Division shall notify, by certified mail, return receipt requested, a licensee that his or her license will be automatically terminated in 30 days from the date of the notice, unless the appropriate administering agency provides to the Division information and proof that the licensee has corrected the failure to pay the arrearage.
b) The licensee may request a hearing on the termination, but the hearing shall be limited to the presentation of evidence on the issues of mistaken identity, proof that the respondent has entered into a payment plan or that the debt has been discharged in bankruptcy.
c) The Division and the Board shall not hear evidence as to whether a licensee has failed to pay or is in arrearage on the payments. The responsibility for the hearing of evidence is with the appropriate administering agency.
Source:
Amended at 33 Ill. Reg. 7077, effective May 14, 2009

Subpart C. CONTINUING EDUCATION

§ 1440.300. Continuing Education Schools Approval and License

Approval of continuing education (CE) schools. Those entities seeking approval as CE schools shall maintain an office for maintenance of all records, office equipment and office space necessary for customer service.
a) The CE school's office may be subject to inspection by authorized representatives of the Division during regular working hours and upon at least 24 hours' notice when the Division has reason to believe that there is not full compliance with the Act or this Part and that this inspection is necessary to ensure full compliance.
b) The Division shall be reimbursed by any out-of-state CE school for all reasonable expenses incurred by the inspector in the course of the inspection.
c) Entities seeking approval as CE schools shall file a CE school application, on forms provided by the Division, along with the required fee. The application shall include the following:
1) An agreement by the applicant that the applicant shall provide to the Division, upon request, a schedule including location, date, time and name of instructor of each CE course to be offered;
2) The CE school's certification:
A) that the content areas of all CE courses offered by the CE school for CE credit will conform to those listed in this Part;
B) that all CE courses offered by the CE school for CE credit will comply with the criteria in this Section;
C) the CE school will be responsible for verifying attendance at each CE course and providing a certificate of completion signed by the CE school on forms provided by the Division. Further, that the school will maintain these records for not less than 5 years and shall make these records available for inspection by the Division during regular business hours;
D) that, upon request by the Division, the CE school will submit evidence as is necessary to establish compliance with this Section. The evidence shall be required when the Division has reason to believe that there is not full compliance with the Act and this Part and that this information is necessary to ensure compliance;
E) that the CE school will only offer CE, other than self-study CE, in an environment that is conducive to learning (i.e., adequate lighting, seating) and does not jeopardize the health, safety, and welfare of the attendees; and
F) that financial resources are available to equip and maintain its office in a manner necessary to enable the CE school to comply with this Section and this Part, documented by a current balance sheet, an income statement or any similar evidence requested by the Division.
d) CE schools approved to offer the courses shall be deemed to be approved to offer CE programs upon completion of an application for approval and submission of the fee required by Section 1440.170 .
e) Within 30 days after the action by the Auction Advisory Board and the Division, the Division shall issue an approval and license to the CE school or notify the CE school, in writing, why approval cannot be issued.
f) Approved CE schools shall comply with the following:
1) No approved CE school shall allow the premises or classrooms utilized during CE courses to be used by anyone to directly or indirectly recruit new affiliates for any company. CE schools and CE instructors shall report to the Division any efforts to recruit licensees.
2) No approved CE school shall advertise that it is endorsed, recommended, or accredited by the Division. The CE school, however, may indicate that the school and the CE course have been approved and licensed by the Division.
3) Approved CE schools shall utilize in the teaching of approved CE courses only CE instructors who are qualified and knowledgeable in the content offered in the course.
4) Approved CE schools shall specify in any advertising promoting CE courses the number of CE hours that may be credited toward Illinois CE requirements for license renewal. Further, approved CE schools shall specify the number of mandatory or elective CE course hours that may be earned by successfully completing the course.
5) All CE courses given by approved CE schools shall be open to all licensees and not be limited to members of a single organization or group.
g) The CE school shall be responsible for assuring verified attendance at each CE course or self-study examination. No renewal applicant shall receive CE credit for time not actually spent attending the CE course or when a passing score of 70% on the examination was not achieved.
h) To maintain approved CE school status, each CE school shall submit, prior to December 31 of odd numbered years, a school renewal application along with the required fee.
i) Each approved CE school shall submit to the Division on or before the 15th of each month a graduation report of those licensees passing approved CE courses offered by it during the preceding calendar month.
1) If a CE school during the preceding calendar month gave no courses, that CE school shall report in writing that no courses were given.
2) The monthly graduation reports may be submitted in a computer readable format specified by the Division.
3) There is no processing fee for a monthly graduation report submitted in the computer readable format specified by the Division. Each monthly graduation report submitted on paper or in a format other than that specified by the Division shall be accompanied by a processing fee of $.50 per student, per course, listed on the report, payable by check to the Division.
4) A monthly graduation report received by the Division with a postmark after the day it is due (the 15th day of the month) shall be accompanied by an administrative fee of $200 in addition to the fees set forth in subsection (i)(3).
5) If a CE school fails to file monthly graduation reports or a statement saying that none were given, or fails to pay required fees, if any, as set forth in subsections (i)(3) and (4), for three successive months, then the courses offered by that school may be disqualified until all delinquent graduation reports, processing fees, and administrative fees as set forth in subsections (i)(3) and (4) have been submitted to and are received by the Division. The Division shall send notice to the school of an informal conference before the Board and of pending disqualification, by certified or registered mail, return receipt requested, or by other signature restricted delivery service.
Source:
Amended at 33 Ill. Reg. 7077, effective May 14, 2009

§ 1440.310. Continuing Education

a) Continuing Education Requirements
1) In accordance with Section 10-30 of the Act, during each pre-renewal period, prior to the expiration date of the license, each auctioneer who makes application to renew his or her license must successfully complete 12 hours of auction continuing education courses approved by the Division from a school reviewed by the Board and approved by the Division.
2) Auctioneers licensed in Illinois but residing and practicing in other states shall comply with the CE requirements set forth in this Section, unless they are exempt pursuant to Section 10-30 of the Act and this Section.
3) The Division shall conduct random audits to verify compliance with this Section.
b) Approved Continuing Education
1) CE credit may be earned for verified attendance at or participation in an approved course that is licensed by the Division, and is offered by an approved CE school that is licensed by the Division, that meets the requirements set forth in Section 1440.300 of this Part.
2) CE credit may also be earned for completion of a distance education course that is offered by an approved CE school that meets the requirements set forth in Section 1440.330 of this Part.
3) The requirement that CE be obtained through a curriculum reviewed by the Board and approved by the Division shall be satisfied by successful completion of the following:
A) Mandatory category. Each renewal applicant shall successfully complete 12 hours of CE, of which 6 hours shall be mandatory core subjects in the following categories:
i) Illinois statutes and rules governing auctioneering;
ii) federal statutes and regulations governing auctioneering;
iii) auctioneering ethics;
iv) escrow and trust accounts;
v) contracts; and
vi) other subject matter recommended by the Board.
B) Elective category. Each renewal applicant may satisfy the remaining 6 hours of CE from the mandatory core subjects categorized in subsection (b)(3)(A), or may successfully complete an additional 6 hours of CE in the following elective subject categories:
i) agency;
ii) business courses related to auctioneering;
iii) real estate related courses;
iv) auction management;
v) bid calling;
vi) public speaking;
vii) advertising;
viii) specialty auction courses; or
ix) other subject matter recommended by the Board.
4) One hour of approved CE shall include at least 50 minutes of classroom instruction and shall be exclusive of any time devoted to taking the examination set forth in subsection (b)(6).
5) Each CE course shall include one or more subjects from either the mandatory category or elective category set forth in subsection (b)(3)(A) or (B), when the individual is in actual attendance, or participates in, or completes distance education. All CE courses shall be a minimum of three hours and shall be offered in three-hour increments. Each three-hour increment shall be from topics in the core or elective category. In no case shall topics from the mandatory and elective category be combined within the same three-hour period. The CE school shall clearly indicate on the certificate of completion the number of hours earned from each CE course and identify whether the completed course was from the mandatory or elective category.
6) Each CE course shall include the successful completion of an examination that measures the attendee's understanding of the course material. A score of at least 70% is required on the examination for successful completion of any CE course.
A) The examination shall be given on-site immediately following any CE course. When a sequence of courses is offered, the examination will be given at the end of each individual course on material that covers all the aspects of the course.
B) All examinations, including distance education examinations and retake examinations, shall be proctored by a representative of the approved CE school and shall include at least 25 questions for each three-hour period.
C) No credit for CE shall be given to any licensee unless the examination is successfully completed. The CE school shall allow the attendee one retake within 30 days after a failed examination in order to receive credit for CE. No more than one retake shall be allowed. A licensee failing a retake shall not receive credit for the CE course unless the entire course is retaken and the examination is successfully completed.
7) Distance education CE shall comply with all of the requirements of this Section, except that:
A) Verified attendance is only required for taking the examination.
B) Classroom instruction is not required for distance education CE, as the intent is for the licensees to review and learn the material on their own.
C) The examination site for distance education shall be determined by the CE school and it shall be proctored by a representative of the approved sponsor. An instructor is not required to proctor the examination.
8) All CE courses shall:
A) Contribute to the advancement, integrity, extension and enhancement of professional skills and knowledge in the practice of auctioneering.
B) Provide experiences (e.g., role playing, lectures, films) that contain subject matter and course materials relevant to that set forth in this Section.
C) Be developed and presented by persons with education and/or experience in subject matter of the CE course.
9) Nothing shall prohibit an approved CE school and its instructors from utilizing audio-visual aides or satellite communication with two-way voice interaction in assisting in the presentation of CE courses.
10) CE credit may be earned by an instructor for teaching an approved CE course. Credit for teaching an approved CE course may only be earned one time per course during the instructor's pre-renewal period. One hour of teaching is equal to one hour of CE.
11) The CE school shall notify the Division when more than 6 hours of CE is offered in any calendar day. This notification shall be submitted to the Division at least 2 weeks prior to the CE course offering.
c) Certification of Compliance with CE Requirements
1) Each licensee shall certify on the renewal application full compliance with the CE requirements set forth in subsections (a) and (b) of this Section.
2) The Division may require additional evidence demonstrating compliance with the CE requirements (e.g., certificate of completion). It is the responsibility of each renewal applicant to provide the additional evidence during an audit as proof of CE completed.
3) When, during an audit or compliance review, the Division determines that a licensee may be deficient in complying with CE requirements, the Division will notify the licensee, and the sponsoring auctioneer of the licensee, by certified or registered mail, return receipt requested, or other signature restricted delivery service, of the possible deficiency. The licensee shall have 60 days from the date the deficiency notification is received to submit to the Division evidence of compliance with CE requirements.
A) If satisfactory evidence of compliance with CE requirements (as set forth in subsection (c)(2) of this Section) is submitted, the Division shall notify the licensee by first class mail that the licensee is in compliance.
B) If the licensee has certified compliance with CE requirements on the licensee's most recent renewal application pursuant to subsection (c)(1) of this Section but cannot submit evidence of having been in compliance on the date the licensee made the certification, the licensee may, during the 60 days notice period, submit evidence of having attained compliance with CE requirements after the date the certification was made. The submission of evidence of post-certification completion must be accompanied by a non-refundable administrative fee of $25 per course credit hour completed after the date the licensee originally certified compliance. The submission of evidence will not be reviewed or considered if the proper fee does not accompany the submission. Upon submission of the evidence and appropriate fee, the evidence will be reviewed. If the evidence is found to be satisfactory, the Division shall notify the licensee and the sponsoring auctioneer of the licensee that the license is in compliance. Any credit hours submitted for post-certification course completion and found satisfactory may not be used as credit for the next renewal requirements.
C) If the licensee fails to submit within the 60 day notice period satisfactory evidence of compliance with CE requirements, the failure shall be evidence of a violation of Section 20-15(1) of the Act regarding false or fraudulent representation to obtain a license. The Division shall send notice pursuant to Section 20-5 of the Act indicating the commencement of disciplinary proceedings. A copy of this notice shall be sent to the sponsoring auctioneer of the licensee.
d) Waiver or Extension of CE Requirements
1) An auctioneer is exempt from the continuing education requirements if it is his or her first renewal.
2) As provided for in Section 10-30 of the Act, if licensees have earned CE hours offered in another state or territory for which they will be claiming credit toward full compliance in Illinois, each applicant shall submit an application along with a $25 processing fee within 90 days after completion of the CE course and prior to expiration of the license. The Board shall review and recommend approval or disapproval of the CE course provided the CE school and CE course are substantially equivalent to those approved in Illinois and provided that the course included the successful completion of a proctored examination. In determining whether the CE school and CE course are substantially equivalent, the Board shall use the criteria in Section 1440.310(b).
3) Any renewal applicant seeking renewal of the license or certificate without having fully complied with these CE requirements shall file with the Division a renewal application, a statement setting forth the facts concerning the noncompliance, a request for waiver or extension of the CE requirements on the basis of those facts and, if desired, a request for an interview before the Board. If the Division finds from the statement or any other evidence submitted that good cause has been shown for granting a waiver or extension of the CE requirements, or any part of the requirements, the Division shall waive enforcement of the requirements for the renewal period for which the applicant has applied.
4) Good cause shall be defined as an inability to devote sufficient hours to fulfilling the CE requirements during the applicable prerenewal period because of:
A) Full-time service in the armed forces of the United States of America during a substantial part of the renewal period;
B) A temporary, incapacitating illness documented by a licensed physician. A second consecutive request for a CE waiver pursuant to this subsection (d)(4)(B) shall be prima facie proof that the renewal applicant has a physical illness, mental illness, or other impairment including, without limitation, deterioration through the aging process, mental illness, or disability that results in the inability to practice the profession with reasonable judgment, skill and safety, in violation of Section 20-15(24) of the Act, which shall be grounds for denial of the renewal or other discipline;
C) Temporary undue hardship (e.g., hospitalization or being disabled and unable to practice auction on a temporary basis).
5) If an interview is requested at the time the request for waiver or extension is filed with the Division, the renewal applicant shall be given at least 20 days written notice of the date, time and place of the interview by certified mail, return receipt requested.
6) Any renewal applicant who submits a request for waiver or extension pursuant to subsection (d)(3) shall be deemed to be in good standing until the Division's final decision on the application has been made.
Source:
Amended at 35 Ill. Reg. 7358, effective April 21, 2011

§ 1440.320. Expiration and Renewal for Continuing Education Schools and Courses

a) Every continuing education school and course license shall expire on December 31 of each odd numbered year.
b) Each licensed CE school shall be responsible for renewal of the CE school and course license on forms provided by the Division. Failure to receive a renewal form shall not constitute a valid reason for failure to pay the renewal fee or to renew the appropriate license.
c) The applicable fees shall be those set forth in Section 1440.170 of this Part.
d) Operation of a CE school on an expired or inoperative license shall constitute the unlicensed or unauthorized practice and shall be grounds for discipline pursuant to Section 20-15 of the Act.
e) Any continuing education school whose license under the Act has expired for more than two years shall not be eligible to renew its license and must make an initial application in accordance with the Act and this Part.
f) Any CE school whose license has expired for less than two years may renew the license at any time by complying with the requirements of the Act and this Part, making application and paying the required fees and penalties.
Source:
Amended at 33 Ill. Reg. 7077, effective May 14, 2009

§ 1440.330. Distance Education Programs

Distance education programs shall be affiliated with an approved school and meet the curriculum requirements set forth in Section 1440.310 of this Part, as applicable. Distance education programs means those courses designed to be taken by means other than attendance in a classroom, e.g., internet courses or correspondence/home study type courses.
a) The program shall be approved by the Division in accordance with Section 30-10 of the Act, and the approved school shall:
1) Maintain a brief description of each lesson;
2) Maintain a list of titles, authors, publishers, and copyright dates of all instructional materials;
3) Require minimum passing scores for all examinations of no less than 70%.
b) The program shall develop a written statement of teaching methods to be employed and materials and equipment needed for each course of instruction.
c) The program shall establish written policies and procedures for examinations and lessons that shall include provisions for instructor comments, suggestions and written correction of errors. There shall also be written procedures for the prompt return of materials.
d) The program shall establish performance objectives for each specific course of study.
e) A qualified instructor shall be available during normal business hours to answer student questions.
f) Students shall be allowed to attend the school's regularly scheduled CE courses.
Source:
Amended at 35 Ill. Reg. 7358, effective April 21, 2011

§ 1440.340. Class Attendance Requirements

a) Attendance at all classes is mandatory; however, credit for absences not to exceed 10% of the class hours may be made up by attendance at make-up classes as provided in subsection (b). Absences in excess of 10% of class hours shall result in failure of the course.
b) Each school shall provide time and facilities for conducting make-up classes for students who were absent from the regularly scheduled class period.
Source:
Added at 25 Ill. Reg. 12586, effective September 28, 2001

§ 1440.350. Withdrawal of Approval of School and Courses

a) Upon written recommendation of the Board, the Division shall withdraw the approval of the continuing education school or course when the quality of the program fails to continue to meet the established criteria set forth in this Part or if approval of the school or program was based upon false or deceptive information.
b) If the Board has reason to believe there has been any fraud, dishonesty, or lack of integrity in the furnishing of any documentation for the evaluation of a school or program, it shall refer the matter for investigation and any disciplinary action that might be appropriate under the Act and this Part.
c) A CE school whose program or courses are being reconsidered shall be given at least 30 days written notice prior to any reconsideration by the Board. The officials in charge may either submit written comments or request a hearing before the Board.
d) In the event the auction license of the administrator of an approved school is suspended or revoked, the school approval shall automatically be rescinded.
Source:
Amended at 33 Ill. Reg. 7077, effective May 14, 2009

§ 1440.360. Discipline of Schools

a) Upon written recommendation of the Board to the Secretary, the Division may refuse to issue or renew a license, reprimand, fine, withdraw approval, place on probation, suspend, or revoke any license or otherwise discipline any license of any school, or applicant for the license, and may impose a civil penalty not to exceed $10,000 upon a licensee, when at any time:
1) The quality of the course, instruction or program fails to meet the established criteria set forth in the Act and this Part.
2) If the license approval was based upon false or deceptive information.
3) If any other professional license, accreditation, or certification by the Division of the school is suspended, revoked, or otherwise disciplined.
4) When the applicant or licensee has:
A) subverted or attempted to subvert the integrity of any exam or course, including through improper reproduction of an exam, providing an answer key to an exam, cheating, bribery or otherwise, or aids and abets an applicant or licensee to subvert the integrity of any exam or course;
B) made any substantial misrepresentation or misleading or untruthful advertising, including without limitation guaranteeing success or a "pass score" on any exam or in any course or using any trade name or insignia of membership in any educational or any auction organization of which the applicant or licensee is not a member;
C) offered auction courses without utilizing qualified instructors;
D) failed to provide information to the Division as required under any provision of the Act or this Part; or
E) disregarded or violated any provisions of the Act or this Part.
b) Disciplinary proceedings shall be conducted as provided for in Article 20 of the Act.
c) Upon recommendation of the Auction Advisory Board, the Division may temporarily suspend, without hearing, the approval and license of a school's courses for failure to comply with the Act or this Part. No CE credit shall be granted to any licensee for completing a CE course for which the approval of the Division has been temporarily suspended.
Source:
Amended at 33 Ill. Reg. 7077, effective May 14, 2009

Subpart D. INTERNET AUCTION LISTING SERVICE

§ 1440.400. Definitions

Unless otherwise clarified by this Subpart, definitions set forth in the Act and this Part shall also apply for the purposes of this Subpart.
"Close of a transaction" shall mean the conclusion of the bidding process of a transaction on an Internet auction listing service web site. It shall not be construed to mean when a seller receives payment for the