KRS 330.110: License suspension, revocation, and other penalties -- Grounds --

Emergency orders and hearings.

(1) The board may suspend for a period up to five (5) years or revoke the license of any

licensee, or levy fines not to exceed two thousand dol lars ($2,000), with a

maximum fine of five thousand dollars ($5,000) per year arising from any single

incident or complaint, against any licensee, or place any licensee on probation for a

period of up to five (5) years, or require successful passage of any examination

administered by the board, or require successful completion of any course of

auction study or auction seminars designated by the board, or issue a formal

reprimand, or order any combination of the above, for violation by any licensee of

any of the provisions of this chapter, or for any of the following causes:

(a) Obtaining a license through false or fraudulent representation;

(b) Making any substantial misrepresentation;

(c) Pursuing a continued and flagrant course of misrepresentation or inte ntionally

making false promises or disseminating misleading information through

agents or advertising or otherwise;

(d) Accepting valuable consideration as an apprentice auctioneer for the

performance of any of the acts specified in this chapter, from any person,

except his or her principal auctioneer;

(e) Failing to account for or remit, within a reasonable time, any money belonging

to others that comes into the licensee's possession, commingling funds of

others with the licensee's own funds, or failing to keep the funds of others in

an escrow or trustee account;

(f) Paying valuable consideration to any person for services performed in

violation of this chapter, or procuring, permitting, aiding, or abetting any

unlicensed person acting in violation of any of the provisions of this chapter;

(g) Entering a plea of guilty, an Alford plea, a plea of no contest to, or being

convicted of:

1. Any felony; or

2. A misdemeanor involving theft, deception, fraud, burglary, or violence,

or that relates to the practice of auctioneering; and

the time for appeal has passed or the judgment of conviction has been finally

affirmed on appeal;

(h) Violation of any provision of this chapter or any administrative regulation

promulgated by the board;

(i) Failure to furnish voluntarily at the time of execution, copies of all written

instruments prepared by any licensee to each signatory of the written

instrument;

(j) Any conduct of a licensee which demonstrates bad faith, dishonesty,

incompetence, or untruthfulness;

(k) Any other conduct that constitutes improper, fraudulent, dishonest, or

negligent dealings;

(l) Failure to enter into a binding written auction listing contract with the seller or

with the seller's duly authorized agent prior to advertising, p romoting, or

offering any real or personal property by or at auction;

(m) Failure to provide a receipt to all persons consigning personal property with

any licensee for auction;

(n) Failure to establish and maintain, for a minimum of five (5) years from fi nal

settlement, complete and correct written or electronic records and accounts of

all auction transactions, including:

1. Listing contracts, including the name and address of the seller;

2. Written purchase contracts;

3. Descriptive inventory and final bid amounts of all items or lots offered;

4. Buyer registration records; and

5. Settlement records, including all moneys received and disbursed and

escrow account activity;

(o) Failure of any licensee to deliver within thirty (30) days any auction -related

information, including but not limited to advertisements, listing contracts,

purchase contracts, clerking records, buyer registration records, settlement

records, escrow account information, license, or any other auction -related

information to the board or the board's designee upon request; or

(p) Failure of a principal auctioneer to provide supervision to his or her apprentice

auctioneers to ensure compliance with this chapter and the administrative

regulations promulgated thereunder.

(2) If any licensee is alleged to have committed a violation that warrants emergency

action, including emergency suspension of the licensee's license, the board may

conduct an emergency hearing in accordance with KRS Chapter 13B as it relates to

emergency orders and emergency he arings. The board shall promulgate

administrative regulations to describe the specific circumstances and allegations

that authorize emergency action.