MINUTES OF THE TELECONFERENCE MEETING ON AUGUST 14, 2019
On August 14, 2019, at 12:00 noon (EDT), NALLOA held a teleconference call business meeting which replaced the business meeting scheduled for July 12, 2019, in New Orleans, LA, that was cancelled.
President Morris welcomed all to the meeting and explained that the reason for holding this meeting as a teleconference call meeting was due to the fact that the business meeting previously scheduled for July 12, 2019, had to be cancelled in New Orleans because of the weather emergency. President Morris then asked for the roll call of those present on this call. Those present were:
Susan Sigourney, IL
Sandy Edmonds , LA
Brandi McGrath Kong, KS (NAA rep)
Donna Potter, OH
Hope Childers, AL
Charles Diehl, NC
Jason Little, TX
Anna Dow, LA
Rhessa Hanson, TN
Don Shearer, FL
Della Lindquist, TX
Russ Tauli, TPECS Program Manager, TX
Latasha Poland, Muklti Program Specialist, TX
Charlotte Melder, Business and Consumer Safety Manager, TX
Marian Brooks, VA
Don Cotton, FL
Cindi Ferguson, KS
Yvonne Laird, MS
Tim Holt, SC
Jeff Morris, TN
Barbara Schoen, KY
The next item on the agenda was to approve the minutes, as posted on NALLOA’s website, for the business meeting held on February 20, 2019, via teleconference call. The motion was made by Don Shearer to approve the minutes as presented and was seconded by Donna Potter with all present voting in favor.
Next was to approve the final financial report for 2018, as posted on the website. Charles Diehl moved that the report be accepted as presented and Donna Potter seconded the motion. All present on this call voted in the affirmative.
Next on the agenda was the matter of electing new officers for the positions of President and Vice-President of NALLOA. After discussion, and with the approval of our present officers, it was decided that the officers in place now will remain that way until our meeting in San Diego next July.
Coming up next on the agenda was any new information on Internet Auctions as they pertain to the auction laws in place with our licensing board states. President Morris said that he feels that Tennessee has done more this year than any other state in trying to address the internet auction issue. They have, per the request of the Legislature, formed a Task Force that consisted of 13 members to examine the auction law in Tennessee. President Morris as well as Rhessa Hanson were two of the 13 members, and are both on this call at present. The Task Force met 4 times and made somewhat sweeping changes to their auction law. To the Task Force’s surprise after submitting their final report to the Legislature, in January, 2019, the Legislature went into session and they passed the recommendations and it is already law as of July 1, 2019. The highlights are (1) the gallery and firm licenses were entirely removed from the law, which now means they will look to the principal auctioneer to run that business. This way they will have a person and not an entity to go after if there is a problem that arises (2) a new level of auctioneer was added to their law and it is “bid caller”. To have a Bid Caller license you need only 16 hours of education, and can only call the bids. Every other aspect of the auction will be handled by the principal auctioneer. There is one more level that is higher than the bid caller and that is Public Automobile Auctioneer who must meet requirements of a principal auctioneer plus some additional education as relates to automobile auction. So they basically have 3 levels of auctioneer (1) Principal Auctioneer (2) Bid Caller and (3) Public Automobile Auctioneer.
Some exemptions apply for insurance companies and online auction companies who generate less than $25,000 per year. Their apprentice auctioneer term has been changed to affiliate auctioneer to make that more synonymous with affiliate broker on the real estate side. Additionally they changed their requirement to be an affiliate down from 2 years to 6 months but they still have to meet the other requirements prescribed. Another change is that no longer may a principal auctioneer supervise only 1 affiliate. He/She may now supervise as many affiliates as they want to. The definition of auction has been changed to now include the word “electronic”, which includes the online part. This will allow for any extension of time other than that listed to fall under the jurisdiction of the Tennessee Auctioneer Commission now.
A follow up to that law being enacted, they have now been sued by one of the online auction companies, and that case is now pending. Therefore, the portion of the law regarding online auctions has not been enacted into effect as yet due to the lawsuit. All of the other portions of that law have been put into effect. They are waiting to see what happens to that law suit, of which President Morris is named due to his position on the Tennessee Auction Commission. President Morris asked if there were any questions and he answered the questions accordingly. Yvonne Laird of the Mississippi Board reported that they have requested an Attorney General Opinion concerning clarification whether or not they have jurisdiction over online auctions as their law now stands. They are waiting for a reply on this matter and expect to have it within the next 30 days or so.
Next item on the agenda was the matter of Sales Tax as it pertains to internet auctions (decision of Wayfair vs. South Dakota case). Brandi McGrath Kong stated that the NAA continues to monitor very closely the updates that come out regarding this matter. As of now there are some 43 states that are regulating the sales tax matter, with Kansas being the most recent and strictest. Kansas is the first state to come out and not have a transactional or economic threshold in place. so there is some thought that it will likely be challenged in court. They are not sure how that will end up faring, but most of the states already have regulations that are active or will become active this fall. The two most notable states that do not currently have laws yet in place are Florida and Missouri. If you go to auctioneers.org/auction-tax, you can monitor the NAA’s work on this issue. They will have representatives in Washington, DC, during the week of September 10, 2019, meeting with Congress as well as other government agencies and different tax policy groups to continue to discuss this issue.
Next topic on the agenda was submitted by Barry Gordon, associate member, and it refers to dialogue concerning criminal activity involving stolen credit cards used at auctions. Since Mr. Gordon was unable to take part in this meeting, and due to the fact that no one else seemed to be experiencing a problem with this issue, the matter was dismissed at this time.
President Morris asked if there was any other issue anyone wished to bring up at this time and there being no comments, the matter was closed.
At this time the renewal of Secretary Schoen’s Executive Secretary contract was brought before the members. President Morris asked if Ms. Schoen wished to continue on in her position and she replied she did if the members wished her to. He asked if her present salary would be sufficient and again she replied yes. He told the members of Ms. Schoen’s 25 years of service with NALLOA and then called for a motion. Donna Potter moved that Ms. Schoen’s contract as Executive Secretary of NALLOA be renewed for the next three year which would be until year 2022. Charles Diehl seconded the motion and all members on the teleconference call voted in the affirmative. Ms. Schoen thanked the members.
Secretary Schoen mentioned the fact that NALLOA had acquired 4 new Associate Members from the New Orleans Conference. They are, Auctions International, Inc., Paul C. Behr, Gordon J. Greene, and Jeff Martin Auctioneers, Inc..
What items to put on the Agenda for the teleconference Winter meeting of NALLOA, which will be held in February, was discussed. It was decided that President Morris, Vice-President Amy Holleman and Executive Secretary Schoen would work together to create the Agenda (a copy of the finalized agenda will be sent to all members prior to the meeting, along with the exact date and time of the meeting).
There being no further business, President Morris thanked all for participating in this call and then the meeting was adjourned.
STATE REPORTS WILL FOLLOW