An Act concerning registration of auctioneers and supplementing Title 45 of the Revised Statutes.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. As used in this act:

"Auction" means the offer to sell property by an auctioneer to the members of an audience congregated for the purpose of making bids for the purchase of the property in an effort by an auctioneer to advance the amount of the bids to obtain the highest or most favorable offer, not including any sale conducted through an online internet bidding platform.

"Auctioneer" means a person who sells or offers to sell property at an auction.

"Director" means the Director of the Division of Consumer Affairs in the Department of Law and Public Safety.

2. a. Except as provided in section 4 of this act, no person shall engage in the business of or act as an auctioneer unless registered pursuant to this act.

b. An application for registration as an auctioneer shall be submitted to the director by the applicant on a form and in a manner prescribed by the director, and shall contain the following information:

(1) the full name, age, which shall be at least 21 years, and residence of the applicant; and

(2) evidence that the applicant has completed a course of study pursuant to section 3 of this act.

c. The director shall issue a certificate of registration to an applicant who meets the qualifications outlined in subsection b. of this section.

d. A registration shall be valid for a period of two years, and shall be renewed biennially by the auctioneer providing the director with an application for renewal, and paying any fee required by the director for renewal of registration.

3. a. An education and training program for auctioneers shall be established by the director through regulation. The program shall consist of those subjects and courses the director deems appropriate and shall include a minimum number of hours of classroom or other instruction.

b. In implementing and administering the education and training program required in subsection a. of this section, the director shall:

(1) implement and administer, or approve, the minimum courses of study and training;

(2) issue certificates of approval to schools approved by the director to offer education and training programs and withdraw certificates of approval from those schools subsequently disapproved by the director;

(3) certify instructors to offer education and training programs pursuant to the minimum qualifications established by the director;

(4) certify those persons who have satisfactorily completed these basic educational and training requirements; and

(5) make rules and regulations and perform other duties as may be reasonably necessary or appropriate to implement the education and training program.

4. The auctioneer registration required by this act does not apply to a person who conducts an auction:

a. For a single piece of property in a calendar year, provided the person is not in the business of selling property and the property is owned by the person in an individual capacity;

b. On behalf of a charitable organization and receives no compensation;

c. Pursuant to a judicial order or decree;

d. In the settlement of any decedent's estate;

e. Under the direction of any public authority; and

f. That is exempted from registration by regulation of the director.

5. Every registered auctioneer shall:

a. Maintain a written record of every auction in which the auctioneer takes part, for a period of two years, which shall include the following information:

(1) The name and address of the person who employed the auctioneer to conduct the transaction and of the owner of the property to be sold;

(2) A copy of the written contract authorizing the transaction containing the terms and conditions of the transaction or a copy of the receiving invoice; and

(3) A written record of the transaction.

b. Provide the director with access to the auctioneer's records maintained pursuant to subsection a. of this section upon request;

c. Enter into a written contract with the owner or consignor of the property to be sold, containing terms and conditions upon which the auctioneer agrees to conduct the sale; and

d. Immediately deposit any moneys received from the sale of property at auction which belong to another into a separate escrow account maintained by the auctioneer for that purpose, until the transaction involved is terminated, at which time the auctioneer shall account for the full amount received.

6. This act shall take effect on the 180th day next following
enactment, provided that the Director of the Division of Consumer Affairs may take any anticipatory actions to effectuate the purposes of this act.

STATEMENT

This bill requires auctioneers to register with the Division of Consumer Affairs, in the Department of Law and Public Safety. Under the bill, auctioneers are people who offer to sell property to the members of an audience congregated for the purpose of making bids for the purchase of the property in an effort by an auctioneer to advance the amount of the bids to obtain the highest or most favorable offer. Sales conducted through an online internet bidding platform are excluded from the definition of auction in the bill.

The bill prohibits persons from engaging in the business of or acting as an auctioneer unless registered pursuant to the bill. The bill requires an application for registration as an auctioneer to be submitted to the Director of the Division of Consumer Affairs by the applicant on a form and in a manner prescribed by the director, and to contain the following information: (1) the full name, age, which shall be at least 21 years, and residence of the applicant; and (2) evidence that the applicant has completed a course of study pursuant to the bill. Under the bill, registration is valid for a period of two years, and may be renewed biennially by the auctioneer providing the director with an application for renewal and paying any fee required by the director for renewal of registration.

The bill requires an education and training program for auctioneers to be established by the director through regulation, consisting of those subjects and courses the director deems appropriate and a minimum number of hours of classroom or other instruction. In implementing and administering the education and training program, the director shall: (1) implement and administer or approve the minimum courses of study and training; (2) issue certificates of approval to schools approved by the director; (3) certify instructors pursuant to minimum qualifications established by the director; (4) certify those persons who have satisfactorily completed basic educational and training requirements; and (5) make rules and regulations and perform other duties as may be reasonably necessary to implement the program.

The auctioneer registration required by the bill does not apply to persons who conduct auctions: (1) for a single piece of property in a calendar year, provided the person is not in the business of selling property and the property is owned by the person in an individual capacity; (2) on behalf of a charitable organization and who receive no compensation; (3) pursuant to a judicial order or decree; (4) in the settlement of any decedent's estate; (5) under the direction of any public authority; and (6) that is exempted from registration by regulation of the director.

The bill requires every auctioneer to maintain a written record of every auction in which the auctioneer takes part for a period of two years, which shall include information on the parties to the transaction, the goods, and the contract with the auctioneer. The bill requires the auctioneer to provide the director with access to the auctioneer's records upon request.

The bill also requires auctioneers to enter into a written contract with the owner or consignor of the property to be sold, containing terms and conditions upon which the auctioneer agrees to conduct the sale and to immediately deposit any moneys received from the sale of property at auction which belong to another into a separate escrow account maintained by the auctioneer for that purpose, until the transaction involved is terminated, at which time the auctioneer shall account for the full amount received.