(a)Public automobile auctions shall be licensed and regulated by the Tennessee auctioneer commission and the Tennessee motor vehicle commission when engaged in the sale of motor vehicles.
(b)The following are minimum requirements for licensed public automobile auctions:
(1)The public automobile auction shall have a letter of compliance with local ordinances from the local zoning authority;
(2)The public automobile auction shall have garagekeeper's legal liability insurance in an amount not less than five hundred thousand dollars ($500,000);
(3)The public automobile auction shall have a surety bond of fifty thousand dollars ($50,000) issued by a licensed bonding company;
(4)The public automobile auction shall have a compiled financial statement prepared in accordance with generally ac
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(a) Public automobile auctions shall be licensed and regulated by the Tennessee auctioneer commission and the Tennessee motor vehicle commission when engaged in the sale of motor vehicles. (b) The following are minimum requirements for licensed public automobile auctions: (1) The public automobile auction shall have a letter of compliance with local ordinances from the local zoning authority; (2) The public automobile auction shall have garagekeeper's legal liability insurance in an amount not less than five hundred thousand dollars ($500,000); (3) The public automobile auction shall have a surety bond of fifty thousand dollars ($50,000) issued by a licensed bonding company; (4) The public automobile auction shall have a compiled financial statement prepared in accordance with generally accepted accounting principles by a certified public accountant or public accountant dated not earlier than twelve (12) months prior to the date of the application and shall furnish a copy of the financial statement to the commission along with any changes to the statement; (5) The public automobile auction shall have a minimum net worth of at least one hundred thousand dollars ($100,000); (6) The public automobile auction shall have a business telephone in the auction company name. For purposes of this subdivision (b)(6), cellular telephones are not acceptable; (7) All signs shall be visible, and a permanent professional business sign shall be installed and have letters that are at least eight inches (8") tall; (8) The public automobile auction shall hold a current business tax license as required by local applicable law; and (9) The public automobile auction must obtain, hold, and have displayed on its premises a valid motor vehicle dealer license from the Tennessee motor vehicle commission and a valid license from the Tennessee auctioneer commission; (10) [Deleted by 2024 amendment.] (c) Prior to a motor vehicle being subject to a public automobile auction, the public automobile auctioneer shall verify that the motor vehicle has a clean and unencumbered title, by obtaining a valid motor vehicle title history from the department of revenue or if the motor vehicle is registered in a state other than this state, the appropriate titling agency in the other state. (d) All public automobile auctions must take place at the established place of business listed on the motor vehicle dealer license. (e) The public automobile auction shall not sell new or unused motor vehicles or vehicles with a manufacturer's statement of origin. (f) The public automobile auction must take possession of and retain title to each motor vehicle offered for sale at the auction. If the sale is finalized on a motor vehicle, then the owner of the vehicle must sign the title over to the public automobile auction, who must then sign the title over to and deliver the title to the buyer on the date of the sale. If a sale of the vehicle is not made, then the unsigned title must be returned to the owner of the vehicle who offered the vehicle for sale at the auction. At all times, the public automobile auction is deemed the seller of the motor vehicle with the same duties and responsibilities as other licensed motor vehicle dealers. (g) The public automobile auction may hire a licensed auctioneer to solicit bids at an auction. (h) [Repealed effective October 16, 2024.] (1) Notwithstanding subdivision (b)(9), a motor vehicle dealer license is not required to sell or purchase previously titled antique or unique motor vehicles through an auction format held in conjunction with a motor vehicle festival: (A) Held at a municipal convention center, as defined in § 7-4-101 , located in a county with a population of not less than three hundred sixty-six thousand two hundred (366,200) and not more than three hundred sixty-six thousand three hundred (366,300), according to the 2020 federal census or any subsequent census; and (B) For which a portion of the festival's proceeds are donated to a hospital neurological institute located in a county with a population of not less than three hundred sixty-six thousand two hundred (366,200) and not more than three hundred sixty-six thousand three hundred (366,300), according to the 2020 federal census or any subsequent census. (2) This subsection (h) is repealed on October 16, 2024. (i) [Repealed effective October 17, 2022.]
Amended by 2024 Tenn. Acts, ch. 590,s 2, eff. 10/11/2024. Amended by 2024 Tenn. Acts, ch. 585,s 4, eff. 3/15/2024. Amended by 2024 Tenn. Acts, ch. 585,s 3, eff. 3/15/2024. Amended by 2024 Tenn. Acts, ch. 585,s 2, eff. 3/15/2024. Amended by 2023 Tenn. Acts, ch. 172, s 2, eff. 10/6/2023. Amended by 2022 Tenn. Acts, ch. 675, s 2, eff. 10/6/2022. Amended by 2021 Tenn. Acts, ch. 66, s 2, eff. 10/15/2021. Amended by 2019 Tenn. Acts, ch. 471, s 20, eff. 7/1/2019. Acts 2008 , ch. 724, § 4.