2014 Kentucky Revised Statutes CHAPTER 330 - AUCTIONEERS AND AUCTION HOUSE OPERATORS 330.192 Auctioneer's education, research, and recovery fund -- Annual fees, charges, and assessments -- Purpose -- Use -- Statement of income and expenses -- Coverage of licensees.
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330.192 Auctioneer's education, research, and recovery fund -- Annual fees,
charges, and assessments -- Purpose -- Use -- Statement of income and
expenses -- Coverage of licensees.
(1)
(2)
(a)
There is hereby created and established in the State Treasury the
auctioneer's education, research, and recovery fund.
(b) In addition to the license fees established in KRS 330.070, and KRS
330.095, the board may assess each licensee a renewal recovery fee
established by administrative regulations promulgated by the board in
accordance with KRS Chapter 13A. Each initial applicant shall pay an
initial recovery fee established by administrative regulations promulgated
by the board in accordance with KRS Chapter 13A.
The purposes of the auctioneer's education, research, and recovery fund shall
be as follows:
(a) When a licensee has been duly found guilty of violating one (1) or more of
the provisions of this chapter, or one (1) or more of the administrative
regulations duly promulgated by the board, and upon the conclusion of a
final order entered by the board or by the courts, if appealed, the board is
authorized to pay to the aggrieved party an amount not to exceed fifty
thousand dollars ($50,000) against any one (1) licensee, if the licensee
has refused to pay the claim within twenty (20) days of entry of a final
order and provided further that the amount or amounts of money in
question are certain and liquidated.
(b) The board shall maintain a minimum of five hundred thousand dollars
($500,000) for recovery and guaranty purposes. These funds may be
invested and reinvested in the same manner as funds of the State
Employees' Retirement System and the interest from said investments
shall be deposited to the credit of the research and recovery fund, or, in
the discretion of the board, to the agency fund account as set out in KRS
330.050(6). Sufficient liquidity, however, shall be maintained so that
money is available to satisfy all claims which may be processed through
the board by means of administrative hearing as outlined in this chapter.
(c) The board may use funds in excess of five hundred thousand dollars
($500,000),whether from the auctioneer's education, research, and
recovery fund fees or accrued interest thereon, for any of the following
purposes:
1.
To advance education and research in the auction field for the
benefit of those seeking an auctioneer license, those licensed under
the provisions of this chapter and to improve and make more
efficient the auction industry;
2.
To underwrite educational seminars, caravans, and other forms of
educational projects for the general benefit of licensees;
3.
To establish an auction chair or courses at Kentucky state
institutions of higher learning for the purpose of making college or
university level courses available to licensees and the general
public;
4.
To contract for a particular research project in the auction field for
(d)
(3)
(a)
(b)
(c)
(d)
(e)
the Commonwealth of Kentucky;
5.
To sponsor, contract for, and to underwrite all other educational and
research projects that contribute to the advancement of the auction
field in Kentucky;
6.
To cooperate with associations of auctioneers and any other groups
for the enlightenment and advancement of Kentucky licensees;
7.
To increase the level of the auctioneer's education, research, and
recovery fund above five hundred thousand dollars ($500,000); and
8.
To augment the regular trust and agency account of the board for
purposes of addressing cash flow shortfalls, budget deficits, and for
reimbursement of personnel, administrative, operational, and capital
expenses incurred by the trust and agency account pursuant to the
purposes of the education, research, and recovery fund as provided
in this section, an amount not to exceed two hundred fifty thousand
dollars ($250,000) annually.
Within one hundred twenty (120) days after the end of each fiscal year,
the board shall make public, through its Web site or other public media, a
statement of income and expenses of the auctioneer's education,
research, and recovery fund, the details of which are in accordance with
state financial reporting requirements.
If a licensee is found guilty of one (1) or more provisions of this chapter or
of violating one (1) or more of the administrative regulations of the board,
and if the amount of the money lost by the aggrieved party or parties is in
dispute or cannot be determined accurately, then the amount of damages
shall be determined by the Circuit Court in the county where the alleged
violation took place, provided that the board has previously determined
that a violation of the license laws or of the administrative regulations has
occurred and a final order has been entered.
If an order has been entered and the license rights of the licensee have
been finally adjudicated, then the local Circuit Court shall determine the
monetary damages due from the aforesaid violation or violations.
When a final order has been entered by the Circuit Court, Court of
Appeals, or Supreme Court, and upon certification to the board, the
aggrieved party or parties shall be paid an amount not to exceed fifty
thousand dollars ($50,000) by the board, and the license held by the
licensee against whom the claim was made by the aggrieved party shall
be suspended at least until the licensee has reimbursed the auctioneer's
education, research, and recovery fund for all amounts paid to the
aggrieved party due to the violation of the licensee.
When, upon the final order of the court, the board has paid from the
auctioneer's education, research, and recovery fund any sum to the
aggrieved party, the board shall be subrogated to all of the rights of the
aggrieved party to the extent of the payment and the aggrieved party
shall, to the extent of the payment, assign his right, title, and interest in
the judgment to the board.
All claims for monetary damages or relief from the auctioneer's education,
(4)
(5)
research, and recovery fund shall be made in writing and submitted to the
board within twelve (12) months of the act of the auctioneer giving rise to
the loss. Failure to file a claim within the twelve (12) month period shall
bar the claim. Additional evidence shall be submitted by the claimant if
required by the board.
(f) Notwithstanding any other provisions of this chapter, no unreimbursed
amount greater than fifty thousand dollars ($50,000) shall be paid by the
board on account of any one (1) licensee, no matter over how long a time,
or for how many claims, and no matter what the number of claimants be
or the size of such claims, individually or in the aggregate. Should the
licensee reimburse the fund for all amounts paid, then future claims timely
filed with the board concerning different matters may be received
pursuant to this section.
(g) No claims shall be approved under this section for amounts which, in the
aggregate, exceed the maximum payable on account of any one (1)
licensee in effect at the time of the act or acts of the licensee giving rise to
the claims, except to the extent of said maximum. Statutory increases in
the maximum set out in this section do not apply retroactively.
All categories of licensees under this chapter are covered under the provisions
of this section for the benefit and protection of the public.
This section is not intended to substitute for, circumvent, or duplicate other
remedies existing at law or otherwise for claimants or potential claimants, but
constitutes a last resort for aggrieved persons who would not, but for the
provisions of this section, be able to recover their losses by any other means
available. The board shall have full discretion to require that claimants exhaust
all other remedies prior to proceeding under this section, including, but not
limited to, the remedy of obtaining a judgment by all diligent and appropriate
means.
Effective:July 12, 2012
History: Amended 2012 Ky. Acts ch. 98, sec. 2, effective July 12, 2012. -Amended 2009 Ky. Acts ch. 70, sec. 18, effective June 25, 2009. -- Amended
1998 Ky. Acts ch. 285, sec. 9, effective July 15, 1998. -- Amended 1992 Ky.
Acts ch. 344, sec. 15, effective July 14, 1992. -- Amended 1990 Ky. Acts
ch. 170, sec. 15, effective July 13, 1990. -- Amended 1984 Ky. Acts ch. 407,
sec. 9, effective July 13, 1984. -- Created 1982 Ky. Acts ch. 79, sec. 5, effective
July 15, 1982.
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