(A) A person who is not otherwise licensed under this chapter and who only provides auction services or holds the person's self out as providing auction services shall do so only with a valid auction firm license issued under this section. This section does not apply to either of the following:

1. (1) A person licensed as a motor vehicle auction owner under Chapter 4517. of the Revised Code who exclusively sells motor vehicles to a person licensed under Chapter 4517. of the Revised Code and who uses an auctioneer who is licensed under this chapter to conduct the auction;
2. (2) A person licensed as a livestock dealer under Chapter 943. of the Revised Code who exclusively sells livestock and uses an auctioneer who is licensed under this chapter to conduct the auction.

(B) The department of agriculture may grant an auction firm license to an auction firm that is determined to be qualified by the department. Every applicant for an auction firm license shall furnish to the department, on forms provided by the department, satisfactory proof that the applicant:

1. (1) Is in good standing with the secretary of state if the applicant is a corporation;
2. (2) Is of trustworthy character;
3. (3) Is registered with the secretary of state or a local authority, as applicable, to do business in this state;
4. (4) Has complied with any other requirement that the director establishes in rules adopted under section 4707.19 of the Revised Code;
5. (5) Has a general knowledge of the requirements of the Revised Code and the general principles regarding auctions, auctioneering, and auction management;
6. (6) Has provided proof of financial responsibility in the amount of fifty thousand dollars in the form of a surety bond, an irrevocable letter of credit, or cashbond;
7. (7) Employs a firm manager as required under division (D) of this section.

(E)

1. (1) An auction firm license issued under this section immediately shall terminate if any of the following occurs:

   1. (a) The auction firm incorporates.
   2. (b) The auction firm ceases to operate as a corporation.
   3. (c) The auction firm changes ownership.
   4. (d) If the auction firm is a partnership, the firm changes the number of partners in the partnership or changes the partners comprising the partnership.
   5. (e) The auction firm changes the firm manager.
   6. (f) The auction firm changes the name under which the firm conducts business.
   7. (g) The auction firm changes its permanent business location. If a license terminates under this division, the licensee immediately shall cease auction services, notify the department of the termination, and return the terminated license to the department.
2. (2) Not later than ten days prior to the date on which an auction firm license will terminate pursuant to division (E)(1)(a), (b), (c), or (d) of this section, the auction firm may submit an application for a new auction firm license in accordance with division (B) of this section. If the auction firm submits the application, returns the terminated license, and pays a fee in the amount of one hundred dollars, the department may issue a new license under this section.
3. (3) If a license terminates pursuant to division (E)(1)(e), (f), or (g) of this section and the formerly licensed auction firm notifies the department, returns the terminated license, and pays a fee in the amount of ten dollars, the department shall issue a new license under this division.