Auctioneers; License in New Mexico

New Mexico Statutes Annotated 
Chapter 61. Professional and Occupational Licenses (Refs & Annos)
Article 16. Auctions
§ 61-16-1. Auctioneers; puffing; fees
§ 61-16-2. Puffing; illegal fees; penalty; civil liability
§ 61-16-3. Purpose
§ 61-16-4. Scope; auction sales exceptions
§ 61-16-5. Sales prohibited without license
§ 61-16-6. Licenses
§ 61-16-7. Application for license
§ 61-16-8. Bond
§ 61-16-9. Fees
§ 61-16-10. Inspectors
§ 61-16-11. Hearing
§ 61-16-12. Licenses limited
§ 61-16-13. Persons disqualified
§ 61-16-14. Offenses
§ 61-16-15. Penalties
§ 61-16-16. Suspension of license
§ 61-16-17. Recovery on bond

§ 61-16-1. Auctioneers; puffing; fees

It is unlawful for any person who sells at public auction any personal property belonging to another:
A. to bid on any article placed by him at auction; or
B. employ or in any way allow puffers to bid for him at an auction.

§ 61-16-2. Puffing; illegal fees; penalty; civil liability

Any person whether as auctioneer or as a puffer of any auctioneer who shall violate the provisions of this chapter, shall be deemed guilty of a misdemeanor, and on conviction before any justice of the peace [magistrate] of the precinct where the offense shall have been committed, shall be fined in a sum not less than twenty-five [$25.00] nor more than fifty dollars [$50.00] and costs of prosecution, or by imprisonment in the county jail for no less than thirty days, and besides such person shall be bound to the person bidding at any such public auction and injured by the unlawful bidding of the auctioneer or his puffers in double the amount of the price of the articles such person bade on, to be recovered by civil action.

§ 61-16-3. Purpose

The purpose of the present act is to regulate auction sales of jewelry in order to prevent fraud, deception and misrepresentation upon the buying public at such sales. It is to be construed liberally to effectuate this purpose.

§ 61-16-4. Scope; auction sales exceptions

A. Chapter 61, Article 16 NMSA 1978 shall apply to all sales by auction, other than those specifically excepted in this section, of gold, silver, plated ware, precious or semiprecious stones, watches, clocks and goods, wares and merchandise commonly classified as jewelry of any kind and nature. It shall not apply to:
(1) bona fide judicial sales; or
(2) bona fide sales upon foreclosure of a chattel mortgage landlord's lien or other lien or like interests.
B. Auction sales of jewelry by transferees upon judicial or bankruptcy sales shall be subject to all the provisions of Chapter 61, Article 16 NMSA 1978.

§ 61-16-5. Sales prohibited without license

All sales of jewelry by auction within the scope of Chapter 61, Article 16 NMSA 1978 are forbidden unless a license issued pursuant to that article has been obtained and is in effect. No such sales whether licensed or not shall be held or be or remain open for business for a period of more than fifteen consecutive days exclusive of Sundays and legal holidays nor shall any license be granted for a sale of greater duration.

§ 61-16-6. Licenses

Licenses to conduct auction sales of jewelry within this act in any municipality shall be secured upon application filed at least thirty days prior to the proposed auction sale in conformity with this act to the governing body of such municipality. Licenses to conduct such sales outside the boundaries of any incorporated municipality shall be secured upon application filed at least thirty (30) days prior to the proposed auction sale in conformity with this act to the board of county commissioners of the county wherein the sale is to be held. The municipal or county board, as the case may be, is hereinafter referred to as “the licensing authority.”

§ 61-16-7. Application for license

Every application for a license hereunder shall be under oath and shall include at least the following:
A. the name, residence and business address and age of the applicant together with an account of the applicant's occupation for the five years preceding the application;
B. the name, residence and business address and age of any person who will participate in conducting the proposed auction sale together with an account of the occupation of such person or persons for the five years preceding the application;
C. a complete inventory of the merchandise to be sold at the proposed auction, assigning a number to each item describing it specifically and giving as to each at least the following information:
(1) in the case of watches and clocks: the movement number, case number and model number, if any; a statement as to whether the article is new or rebuilt; the correct number of jewels; the kind of case, and the quality of the case; whether solid, gold or silver, gold-filled and the quality of any plating; the approximate year of manufacture;
(2) in the case of diamonds, whether sold separately or as a part of other jewelry: the exact weight; the color and quality; the degree of fineness; and the degree of perfection;
(3) in the case of precious and semiprecious stones other than diamonds, whether sold separately or as a part of other jewelry: the exact weight, the degree of fineness; and whether the stone is mined, reconstructed, synthetic or imitation;
(4) in the case of metallic wares, except watches, and other jewelry: the fineness of the metal, whether solid, filled or plated; and the quality of the plating, if there be plating;
D. an oath to observe the laws of this state and of any subdivision thereof wherein the sale is to be held;
E. the address, hours and dates of the proposed sale, only one place of auction being permitted;
F. the proposed terms of all sales;
G. a statement whether or not any auction license issued to the applicant has been denied or revoked.
All applications together with accompanying documents shall be kept by the municipal or county clerk as the case may be and shall be open to public inspection at all reasonable hours.

§ 61-16-8. Bond

In addition, all such applications for license shall be accompanied by the bond of the applicant in the penal sum of five thousand dollars ($5,000) running to the state of New Mexico, and conditioned to secure the faithful observance of this act by all persons taking part in the conduct of any auction hereunder. Such bonds shall be secured by two or more individual sureties each of whom must be qualified by ownership of property subject to execution within this state over and above all just debts and liabilities of a value equal to the penal sum of the bond; or by one corporate surety qualified to do business in this state.

§ 61-16-9. Fees

All applications shall be accompanied by the payment in cash to the municipality or county as the case may be of an amount equal to twenty-five dollars ($25.00) for each day of the proposed sale as its duration is shown by the application. Such fees are to be returned to the applicant in the event the application is denied or a pro rata share thereof shall be returned if the sale is voluntarily discontinued before its proposed duration has expired. No return of any sums shall be made in the event said sale is terminated for any violation 

§ 61-16-10. Inspectors

Said fees shall be used to defray the expense of employing a special inspector or inspectors who shall remain on the premises upon which the auction sale is conducted during all times when the same is open for business. The special inspectors shall be appointed specially for each auction by the licensing authority and so far as possible regularly employed police officers or deputy sheriffs shall be used for this purpose. He shall have power and be under duty to supervise the auction to ensure observance of the laws of this state and to make arrests in the same manner and to the same extent as other peace officers. Any surplus of fees over and above the cost of employing such special inspector or inspectors shall be retained by the municipality or county.

§ 61-16-11. Hearing

Upon the presentation of an application for a license hereunder the municipal or county clerk as the case may be shall set a date for hearing thereon not less than one week nor more than three weeks thereafter, said hearing to be held at either a regular or special meeting of the licensing authority. Notice of said hearing shall be given forthwith by registered mail to each person or company engaged in the business of selling jewelry within the particular municipality or county.
At the hearing upon said application the applicant shall attend and shall submit to an examination touching his application under oath to be conducted by the municipal or district attorney as the case may be, and by any citizen of said municipality or county, and by the attorney for any jeweler or any association of jewelers doing business within this state. The applicant or any person, persons, corporations or associations opposing the granting of a license may introduce evidence either [by] written or oral testimony or by affidavit.
If the governing board of the county or municipality as the case may be shall determine that the applicant is not disqualified, and that the application conforms with the law a license shall be granted; otherwise a license shall not be granted. As a condition of granting the license the licensing board may require more complete descriptions of the items in the inventory if they deem the tendered descriptions to be incomplete.

§ 61-16-12. Licenses limited

Licenses issued hereunder shall be expressly limited to the particular times and premises described in the application as required in Section 5(e) hereof. A license issued hereunder shall not be held to sanction any auction sale of jewelry at any time or place other than that described in the application thereof.

§ 61-16-13. Persons disqualified

No person shall be granted a license, if he or any of his agents, principals or employees:
A. has been convicted of a violation of this act or of Sections 61-16-1 and 61-16-2 NMSA 1978;
B. has had a license issued under this act revoked;
C. has held a jewelry auction sale within thirty (30) days prior to the date given in the application for the beginning of the sale sought to be licensed.

§ 61-16-14. Offenses

It shall be unlawful:
A. to employ shills or puffers at any such auction sale or to offer or to make or to procure to be offered or made any false bid or offer any false bid to buy or pretend to buy any article sold or offered for sale;
B. to make or attempt to make any sale to any but a bona fide bidder for cash at the highest bid above the reserve price, if any, named in the inventory required by Sec. [Section] 5(c) hereof;
C. to misrepresent the cost price, or trade name or quality of any article offered for sale;
D. to fail to announce in a clear audible tone as to each article offered for sale its true description as found in the inventory required by Section 5(c) hereof;
E. to fail to attach to each article sold upon its delivery a card upon which shall be legibly written its inventory description and number;
F. to make any false statement in the application for license hereunder or the inventory filed therewith;
G. to sell or attempt to sell any article or merchandise falling within the class described in Section 2 hereof that has not been included in the inventory required by Section 5(c) hereof;
H. for a licensee to conduct or attempt to conduct an auction within this act other than on the premises described in the application as required by Section 5(e).

§ 61-16-15. Penalties

Any person or corporation violating the provisions of Section 3(a) of this act shall upon conviction thereof be fined not less than one hundred [$100] nor more than one thousand dollars [$1,000] and may be imprisoned for not more than sixty (60) days.
Any person or corporation violating any other provisions of this act shall upon conviction be fined not less than twenty-five [$25.00] nor more than one hundred dollars [$100] for each offense. Each individual illegal sale at said auction shall constitute a separate offense. Upon conviction of the licensee or his agent or principal or employee of any offense hereunder the license shall be revoked forthwith by the court in which the conviction is had.

§ 61-16-16. Suspension of license

Upon the filing of criminal proceedings for violation of this act against any licensee or any person operating the auction, any citizen may apply to the county or municipal board which granted the license for an immediate suspension of said license. The board shall determine forthwith whether there is probable cause to believe that this act has been violated and upon an affirmative determination shall forthwith suspend the operation of the license effective upon delivery of written notice thereof to any person conducting the auction sale or soliciting bids. The suspension shall operate until the acquittal of the person accused of such violation or until revocation of the license following conviction.

§ 61-16-17. Recovery on bond

The state of New Mexico for the purpose of recovery of fines and penalties hereunder, and any person purchasing at any auction hereunder for the satisfaction of any civil judgment in an action for misrepresentation or fraud, or arising out of any violation of this act, shall have a right of action upon the bond required by Section 6 hereof. Such action shall be brought in the name of the state of New Mexico only or in the name of the state of New Mexico to the use of the party entitled to recover upon said bond, as the case may be.

N.M. Stat. Ann. §§ 61-16-1 - 61-16-17