LAPA's PROPOSED REFORM

OF THE LOUISIANA AUCTION INDUSTRY

 

 

1. Abolish the Louisiana Auctioneer's Licensing Board (LALB).  It is a useless agency which provides almost NOTHING in the way of consumer protection, has no power whatsoever to make a victimized consumer "whole," and actually AIDES & ABETS the victimization of auction clients, both consignors and bidders, by “big-time” auctioneers while aggressively pursuing trivial violations by the smallest of Louisiana auctioneers.

2. Take the LALB checking account funds, which approximate $250,000, and transfer that balance to an Auctioneer Special Trust Fund (ASTF) with the Louisiana State Treasurer. The ASTF would compensate auction victims after a Judgment is rendered in court and the auctioneer fails to satisfy the Judgment within 30 days of the Judgment's signing.  It should come as no surprise that many auctioneers in Louisiana are flat broke, and the required bond (which is VERY difficult to collect upon) is a MEASLY $10,000.

3. Present auction license fee becomes a “registration fee” which adds to the ASTF, which would gradually grow to cover, at least partially, even the most egregious auction losses.  Presently, there’s essentially no financial recovery.  If the ASTF dips too low, auction registrants are simply charged with a special assessment over several years to replenish the ASTF to an adequate level.

4. Registration (#1 above) should entail auctioneers providing proof of a MINIMUM of $100,000 of E & O insurance as a FIRST LINE OF DEFENSE to compensate victims.

5. If a payment is made from the ASTF, the auctioneer responsible for such payment shall be barred from the auction industry in Louisiana FOR LIFE. Recall from # 2 above that payment is made from the ASTF ONLY if the auctioneer is unable to satisfy a court Judgment rendered against him or her within 30 days of the judgment's issuance. 

 

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