Be it enacted by the Senate and House of Representatives
in General Court assembled, and by the authority of the same,
SECTION 1. Chapter one hundred of the General Laws is hereby amended by striking section 2 and inserting in place thereof the following section:
Section 2. Except as otherwise provided, no person shall engage in the business of or act as an auctioneer in the commonwealth, directly or indirectly, either temporarily or as an incident to any other transaction, unless licensed under the provisions of this chapter.
SECTION 2. Chapter one hundred of the General Laws is hereby further amended by striking section three and inserting in place thereof the following sections:
Section 3. Any person desiring to be licensed as an auctioneer shall make written application, under oath, to the director on a form provided by him. Said application shall set forth the name and address of the applicant and of any other person having a financial interest, direct or indirect, in the business to be conducted by the applicant. Said application shall be accompanied by evidence satisfactory to the director that the applicant is a citizen of the United States, has attained the age of eighteen years, has successfully completed a course of study at a school recognized by the National Auctioneers Association, and has successfully completed a written examination in accordance with the provisions of section three A of this chapter. Said application shall be accompanied by a license fee in the amount of one hundred dollars, or such other amount as the secretary of administration and finance pursuant to the provisions of section three B of chapter seven shall establish, together with two letters of recommendation for licensure signed by a licensed auctioneer, and elected public official, or member of the Massachusetts bar.
Said application shall be further accompanied by a bond upon the applicant in the sum of ten thousand dollars, or such other amount as provided by regulation, payable to the director or his successors with sureties approved by the director, and conditioned upon applicant's compliance with the provisions of this chapter. Said bond shall guarantee the payment of all fines and penalties incurred by applicant as a licensee for his violations of the said provisions, and also guarantee the payment or satisfaction of any final judgements on claims by creditors against the licensee arising in connection with business conducted under a license granted under this chapter. All such payments under said bond being limited to the amount of said bond. Such a creditor's claim, however, must have been duly filed by giving written notice to the director prior to the expiration of sixty days from the return or surrender of said license or date of the filing of an affidavit of loss of the license held by the licensee against whom the claim is made.
The acceptance by an applicant of a license issued by the director to him as a licensee shall be deemed equivalent to an appointment by the licensee of the director, or his successors in office, to be the licensee's true and lawful attorney upon whom may be served all lawful process in any action or proceeding against him under said license. Any process against the licensee so served shall, if said licensee is notified as hereinafter provided, be of the same legal force and validity as if served on him personally, and the mailing by the director of a copy of such process to said licensee at his last address, as appearing on the director's records, shall be sufficient notice to him of such service. Service of such process shall be made by delivering or mailing duplicate copies thereof together with a fee of two dollars to the office of the director, and the director shall forthwith send one of said copies by mail, postage prepaid, addressed to the defendant licensee named in such process at his last address as appearing on the director's records.
An affidavit of the director, or of any person authorized by him to send such copy, that such copy has been mailed shall be prima facie evidence thereof. One of the duplicates of such process, certified by the director as having been delivered to the office of the director, shall be sufficient evidence of service upon him as attorney for the licensee named as defendant in the process.
Section 3A. There shall be a written examination process to license auctioneers in the commonwealth. Such examination shall be administered by an independent testing service designated by the director. All fees and costs required for examination shall be paid by the applicant directly to the independent testing service. Such examination shall be administered no less than one time per year at a location to be determined by the designated independent testing service subject to the approval of the director. Such examination shall be conducted by the designated independent testing service under the direct supervision of the director. No license shall be issued to any person who has not demonstrated through said written examination that he possesses the following:
(1) appropriate knowledge of technical terms commonly used in or related to auctioneering;
(2) an understanding of the problems likely to be encountered in carrying out an auction;
(3) appropriate reading comprehension, writing and spelling skills, knowledge of basic mathematics;
(4) understanding of the types of misconduct for which disciplinary proceedings may be initiated against a state licensed auctioneer;
provided, however, that an auctioneer licensed by the commonwealth prior to the effective date of this act shall conform to all pertinent provisions of this chapter to retain his license within two years of the effective date of this act, provided, further, that if said auctioneer does not conform to said pertinent provisions of this chapter, said license shall be revoked and said individual shall not engage in the business of or act as an auctioneer in the commonwealth, directly or indirectly, either temporarily or as an incident to any other transaction.
Section 3B. A nonresident individual may be licensed as an auctioneer upon conforming to all pertinent provisions of this chapter, provided that the division may exempt from the written examination prescribed in section three A an auctioneer duly licensed in any other state of the United States under the laws of which there are equivalent requirements for licensure.
Section 3C. A license shall be valid for a period of three years from the date of issue unless sooner suspended or revoked and shall be renewed by the division biennially thereafter, without examination, upon payment of the fee prescribed in section three, provided, that the application for renewal is made not later than one year from the expiration of the license. Applications for renewals of licenses shall be signed and sworn to by the applicant and shall be made on forms furnished by the division. Such application forms shall be mailed by the division to each auctioneer registered with the division, together with notice of the expiration of his license, not less than thirty days prior to such expiration.
SECTION 3. Section four of chapter one hundred of the General Laws is hereby amended by striking the first sentence and inserting in place thereof the following sentence: No license application conforming to the requirements of sections three and three A shall be denied except after a public hearing held by the director in accordance with and subject to the provisions of chapter thirty A.
SECTION 4. Section nine of chapter one hundred of the General Laws is hereby amended by adding the following clause:
(h) knowingly allow any individual who is not licensed to call for bids; provided, however, that an auctioneer may allow an individual who is not licensed to call for bids when such individual is under the direct supervision of an auctioneer licensed in accordance with the provisions of this chapter.
SECTION 5. Chapter one hundred of the General Laws is hereby further amended by adding the following section:-
Section 13. The division may make and, from time to time alter, amend or repeal rules and regulations for the conduct of auctioneers in the commonwealth not inconsistent with this chapter or any other general or special law.