Florida to Deregulate the Auction Business:
Say It Ain't So


On April 7, 2011, the Florida House of Representatives voted to deregulate 19 different types of businesses to include auction houses and auctioneers. The bill is HB 5055. It still has to clear the state senate and if that happens, this controversial and important piece of legislation is slated to go into effect on July 1, 2011.

Imagine you just spent over a thousand dollars and several weeks going to school to become an auctioneer; or you may have decided to forego school and do your training by serving as an apprentice under another licensed auctioneer. The apprenticeship program, in the state of Florida, takes two years. Regardless of which option you chose, you finished the required training and, after much studying, you passed the state test. It was time-consuming and somewhat difficult but it was all worth it! Or was it? You now learn that you could have been playing golf instead of going to school or training as an auctioneer's apprentice.

You suddenly find yourself in possession of a license that will soon be meaningless. Not only don't you need that license you worked so hard to get, but all the rules, regulations and laws that were such an intricate part of your training are now null and void.

That's the bad news. The good news is you no longer have to worry about adhering to the Florida statutes governing auctioneers and auction houses. Would it be a good idea to abide by them anyway? Only if you want to keep your customers. How this is all going to play out is yet to be determined.

There are many people who will be happy about HB 5055. They are the people who want to shrink government - a government they already view as being way too big. Small businesses in particular have a hard time dealing with an overbearing bureaucracy and an ever-increasing list of rules, licenses, fees and paperwork.

The other side of the coin is the concern for consumer protection. Once the deregulation goes into effect, what is to stop any number of con artists from setting up shop all around the state? If auctioneers no longer need a license then those people wanting to be auctioneers only have to snap their fingers and they are automatically auctioneers. The same applies to those who want to open an auction house. All someone has to do is find a building and hang a sign.

It's too bad that those who are responsible for HB 5055 felt it had to be all or nothing. A compromise of some sort should have been struck. A lot of the red tape could have been eliminated while still preserving the more important safeguards that were put in place to protect customers from fraud. This deregulation is a prime example of throwing out the baby with the bath water. The auction business, as it exists today, is going, going, gone.

 

Written by Anne Benedetto, Auction House Talk
 
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