Rule 901:8-2-08 | Classification of offenses; investigative costs and civil penalties.
(A) A minor offense includes but is not limited to:
(1) Financial harm to the owner of the item being auctioned, consignor, or public in an amount up to one thousand dollars;
(2) Failure to produce copies of documents;
(3) Failure to display required notices;
(4) Minor advertising violations; and
(5) Failure to enter into a contract (first offense only).
(B) The department may assess a civil penalty up to one hundred dollars for the first minor offense and up to two hundred dollars for each subsequent minor offense. If a licensee should commit a minor offense found in paragraph (A) of this rule more than five times in a twelve month period each subsequent offense shall be considered a major offense according to paragraph (C)(2) of this rule.
(C) A major offense includes but is not limited to:
(1) Financial harm to the owner, consignor, or public amounting from one thousand one dollars to five thousand dollars;
(2) A minor offense found in paragraph (A) of this rule which the licensee has violated more than five times in a twelve month period;
(3) Acting without a license as an auctioneer, corporation, partnership, unincorporated association, or auction firm;
(4) Aiding an unlicensed entity;
(5) Moderate or continuing advertising violations; and
(6) Bad faith, dishonesty, or failure to return funds or property pursuant to the terms of a contract, or failure to return funds or property within the required fifteen-day return period.
(D) The department may assess a civil penalty of one hundred dollars and up to five hundred dollars for the first major violation. The department may assess a civil penalty of five hundred dollars and up to one thousand dollars for each subsequent major violation.
(E) A serious offense includes, but is not limited to:
(1) Financial loss to the owner, consignor, or public in an amount of five thousand one dollars and over;
(2) Failure to report a conviction of a felony or fraud;
(3) Fraud, theft, commingling of funds, bid rigging, or misrepresentation;
(4) Providing false information on a license application; and
(5) Continued failure to return funds or property pursuant to the terms of a contract, or continued failure to return funds and property within the required fifteen day period.
(F) The department may assess a civil penalty of one thousand dollars and up to five thousand dollars for the first serious violation. The department may assess a civil penalty of five thousand dollars and up to ten thousand dollars for each subsequent serious violation.
Last updated February 16, 2023 at 8:28 AM
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