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There is established within the general fund an auctioneer education and recovery account, referred to as the “account” in this section. All funds received by the commission under this section shall be deposited into the account and held solely for the purposes of this section. The commission shall maintain a minimum balance of one hundred fifty thousand dollars ($150,000) in the account.
Moneys within the account shall be invested by the state treasurer in accordance with § 9-4-603 for the sole benefit of the account.
No new auctioneer or affiliate auctioneer license shall be issued unless the applicant pays, in addition to the license fee, a fee of fifty dollars ($50.00) or a lesser amount that the commission may by rule establish for deposit into the account.
No renewal auctioneer or affiliate auctioneer license shall be issued unless the applicant pays, in addition to the renewal fee, a fee of fifty dollars ($50.00) or a lesser amount that the commission may by rule establish for the purpose of ensuring that the required minimum balance is maintained in the account.
Any person may, by order of any court of competent jurisdiction, recover from the account actual or compensatory damages, not including interest and costs, resulting from any violation of this chapter or of any rule promulgated under this chapter, committed by a licensee on or after June 30, 1987; provided, that:
The liability of the account shall not exceed ten thousand dollars ($10,000) per transaction, regardless of the number of persons aggrieved;
The liability of the account for the acts of a licensee, when acting as such, shall be terminated upon the issuance of court orders authorizing payments from the account for judgments, or any unsatisfied portion of judgments, in an aggregate amount of twenty thousand dollars ($20,000) on behalf of the licensee;
A licensee acting as such shall have no claim against the account; and
A bonding company not involved in an auction shall have no claim against the account.
When any aggrieved person commences an action for a judgment that may result in collection from the account, the person shall promptly notify the commission to this effect in writing by certified mail, return receipt requested. The commission may, subject to the approval of the attorney general and reporter, take any action it may deem appropriate to protect the integrity of the account.
When any aggrieved person obtains a valid judgment respecting which recourse against the account is permitted under this section and all or any part of the judgment is unpaid sixty (60) days after the date of the judgment, the person may, upon termination of all proceedings, including reviews and appeals in connection with the judgment, apply to the court in which the judgment was entered for an order directing payment from the account of the amount unpaid upon the judgment. Upon determination of the court that the judgment or any part of the judgment is unpaid, the court shall enter an order directing the commission to make payment from the account to satisfy the judgment.
If the commission, pursuant to a court order, pays any amount from the account on behalf of a licensed auctioneer or affiliate auctioneer, the commission may, in its discretion, suspend or revoke the license of the auctioneer or affiliate auctioneer. No auctioneer or affiliate auctioneer whose license is revoked under this subsection (g) shall be eligible to apply for a new license until the person has repaid in full the amount paid from the account on the person's behalf, plus interest at the effective earnings rate for the account for the period the claim is unpaid.
When, upon the order of the court, the commission has paid from the account any sum to the judgment creditor, the commission shall be subrogated to all of the rights of the judgment creditor in the judgment. Any amount recovered by the commission on the judgment shall be deposited to the account. If the total amount collected on the judgment by the commission exceeds the amount paid from the account to the original judgment creditor, plus interest and the cost of collection, the commission may elect to pay the overage or reassign the remaining interest in the judgment to the original judgment creditor. The payment or reassignment to the original judgment creditor shall not subject the account to further liability for payment to the original judgment creditor based on that transaction or judgment. Any costs incurred by the commission in attempting to collect judgments shall be paid from the account.
If, at any time, the money deposited in the account is insufficient to satisfy any duly authorized claim or portion of the claim, the commission shall, when sufficient money has been deposited in the account, satisfy the unpaid claims or portions of the claim in the order that they were originally filed, plus interest at the effective earnings rate for the account for the period the claim is unpaid.
The failure of an aggrieved person to comply with this section constitutes a waiver of any rights under this section.
It is unlawful for any person to file or cause to be filed with the commission any notice, statement or other document required under this section that is false or contains any material misstatement of fact.
The commission may, in its discretion, utilize any return on investment of funds in the account and any balance in the account over one hundred fifty thousand dollars ($150,000) to:
Sponsor, conduct or assist in conducting, education, training or research designed to improve the competence, effectiveness or professionalism of licensees, the members of the commission or its staff;
Prepare and disseminate information for the benefit of licensees and the general public; and
Employ an investigator to assist the commission. The investigator shall carry an identification badge issued by the department of commerce and insurance and has the authority to make investigations concerning the enforcement of the laws, rules and policies promulgated under this chapter. The investigator shall have the authority to stop any auction activity that is being promoted, managed or supervised by unlicensed individuals in violation of this chapter.
The commission shall not expend or commit sums pursuant to subdivision (l )(1) in an amount that would reduce the account to a balance of less than one hundred fifty thousand dollars ($150,000).
No state funds shall be expended to effectuate this section other than the fees and charges set forth in this section.