Tenn. Comp. R. & Regs. 0160-01-.12 - AFFILIATES - SPONSORS - SUPERVISION

(1) In order to be permitted to sponsor an affiliate auctioneer, a principal or public automobile auctioneer must be licensed for at least one (1) year and be in good standing with the Commission.

(2) Any affiliate auctioneer so sponsored shall be under the direct supervision of his or her sponsor or under the direct supervision of his or her non-sponsoring employer auctioneer if acting pursuant to paragraph (6).

(3) A sponsoring principal or public automobile auctioneer is to be responsible and accountable for the auctioneering activities of any affiliate auctioneer associated with such auctioneer.

(4) Any legal document relative to conducting, or offering to conduct, any auction shall be executed by a principal or public automobile auctioneer, or by an affiliate auctioneer with the approval of his or her sponsor so noted on the document.

(5) Any advertisement placed by an affiliate auctioneer must clearly and conspicuously identify the affiliate auctioneer as such, contain his or her license number, and the name and license number of his or her sponsor.

(6) An affiliate auctioneer may be employed by a licensed principal or public automobile auctioneer who is not designated as the affiliate's sponsor if the following terms and conditions are met:

(a) The affiliate auctioneer must first notify the Commission of such employment on a form approved by the Commission. The form shall include the written permission of the affiliate's sponsor and shall contain the notarized signatures of the affiliate auctioneer, the sponsoring principal or public automobile auctioneer and the non-sponsoring employer principal or public automobile auctioneer;

(b) The non-sponsoring employer auctioneer must be currently licensed as a principal or public automobile auctioneer in the State of Tennessee and must be in good standing with the Commission; and

(c) Any violation of this rule shall subject the affiliate auctioneer, the sponsoring principal or public automobile auctioneer and/or the non-sponsoring employer principal or public automobile auctioneer to disciplinary action by the Commission.

(7) An affiliate:

(a) May not execute a contract to conduct an auction without the approval of his or her sponsor noted on the document, but an affiliate may sign a contract in order to indicate he or she procured the client and the auction.

(b) May not sign a closing statement or have an escrow or trust account in his or her name as a depository for auction proceeds, but he or she may take part in the closing and settlement proceedings of an auction. An affiliate's sponsoring auctioneer is responsible for keeping the account of and dispersing money received at an auction.

(c) May not call bids at an auction without the presence of his or her sponsor. An affiliate's sponsor is responsible for all auctioning activities of the affiliate and must be physically present to monitor those activities.

(8) An affiliate shall provide the Tennessee Auctioneer Commission with sufficient proof that he or she has been active during the affiliateship. Each affiliate shall use a log as a means to keep track of his or her experience during the six (6) month affiliateship period. The log shall be completed and submitted with the application for a principal or public automobile auctioneer license, at the conclusion of the affiliateship.

(a) Points. An auction is divided into eight (8) parts. Each part has a point value assigned to it. Performance of any of the activities listed in paragraph (9) of this rule earns the affiliate the corresponding points. The details of these activities and their point values shall be included in an affiliate's log. During the six (6) month affiliateship period, an affiliate shall obtain a minimum of 1,000 points in order to be eligible for a principal or public automobile auctioneer license. This is the substantial equivalent of working five (5) auctions from beginning to end.

(b) Sponsor's Signature. A sponsoring principal or public automobile auctioneer shall acknowledge each auction activity recorded in his or her affiliate's log, by signing and dating in the appropriate space after each entry of activity.

(c) Accumulating Points. An affiliate should make every effort to obtain and log experience in all phases of the auction business. An affiliate shall not submit a log with all of his or her experience concentrated in fewer than four (4) auction activities. The purpose of the log is to indicate to the Commission that the affiliate has been fully exposed to the auction business and has participated in as many areas of the auction process as possible.

(9) An affiliate shall complete each of the following categories to receive points:

(a) Contracts: Complete and execute a contract with a seller (in accordance with subparagraph (7)(a) of this rule), twenty (20) points;

(b) Advertising: Write an inventory/create a newspaper ad/erect signs, twenty (20) points;

(c) Sale Preparation: Prepare an inventory for an auction or set up auction equipment, twenty (20) points;

(d) Bid Calling: Call bids at an auction, sixty (60) points;

(e) Bid Assistant/Working Ring: Work the ring at an auction for at least one (1) hour, forty (40) points;

(f) Clerking/Cashiering: Clerk at least thirty percent (30%) of an auction or collect money for at least thirty percent (30%) of an auction, twenty (20) points; and

(g) Closing: Participate in balancing auction proceeds and assist in preparation of a closing statement, twenty (20) points.

Notes

Tenn. Comp. R. & Regs. 0160-01-.12

Original rule filed November 23, 1988; effective January 7,1989. Amendment filed March 15, 1993; effective April 29, 1993. Amendment filed August 5, 1998; effective October 19, 1998. Amendment filed February 28, 2001; effective May 14, 2001. Amendments filed April 13, 2020; effective 7/12/2020.

Authority: T.C.A. §§ 62-19-106, 62-19-111, and 62-19-112(b)(7).