California · State Reference
How Auctioneering Works in California (No License, But a Bond Is Required)
California does not issue a state license to auctioneers or auction companies but that doesn't mean the state doesn't regulate the profession. Every auctioneer and auction company operating in California must maintain a $20,000 surety bond filed with the California Secretary of State. This bond, not a license exam, is the state's primary mechanism for auctioneer accountability.
What's Actually Required
- No state license or exam. California's Secretary of State confirms directly that no license is issued to auctioneers or auction companies.
- A $20,000 surety bond is mandatory, filed with the Secretary of State, under California Civil Code § 1812.600. This applies to both individual auctioneers and auction companies.
- A $30 filing fee applies when the bond is filed with the Secretary of State.
- The bond term must be at least 24 months (2 years) and must be renewed before expiration — if you fail to renew or file a new bond before the old one lapses, you must cease conducting business until a new bond is filed.
- A cash deposit may substitute for a bond in some cases, under California Code of Civil Procedure § 995.710.
- Local business licenses may still apply. Municipal or county governments may require a separate local business or tax license, even though the state itself doesn't license auctioneers.
Why California Requires a Bond Instead of a License
This isn't an accidental gap but it's a deliberate policy choice. California used to run a full licensing system for auctioneers through a state Auctioneer Commission. The legislature repealed that entire licensing act in 1993 through Assembly Bill 259 and replaced it with the current bond-based system: instead of a state board vetting auctioneers through exams and applications, the bond exists to financially compensate anyone harmed by fraud, misrepresentation, or misconduct by an auctioneer or auction company. In effect, California shifted from gatekeeping who can become an auctioneer to guaranteeing consumers have recourse if something goes wrong.
Step-by-Step Process
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Obtain a $20,000 surety bond from a surety company admitted to do business in California.
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File a copy of the bond with the California Secretary of State, along with the $30 filing fee, using Secretary of State form SF-SB-455.
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Check local requirements. Contact the city or county where you'll be operating to confirm whether a local business license or tax registration is also required.
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Begin conducting auctions. No exam, application review, or waiting period tied to a state licensing board applies. The bond filing itself is the compliance step.
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Renew your bond before it expires (at least every 24 months) to remain in compliance.
Costs
| Item | Cost |
|---|---|
| Surety bond ($20,000 principal) | Typically $200–$350 for a 2-year term, depending on provider |
| Secretary of State filing fee | $30.00 |
Bond premium costs are set by individual surety providers, not the state, so shop rates.
Sources
- California Secretary of State — Frequently Asked Questions, Special Filings: sos.ca.gov/business-programs/special-filings/faqs
- California Civil Code § 1812.600–1812.609 (Auctioneer and Auction Companies bond requirements)
- Assembly Bill 259 (1993–94 session) — the law that repealed California's former Auctioneer and Auction Licensing Act
- California Secretary of State — Auctioneer/Auction Company Bond Form SF-SB-455
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See our California course →Frequently Asked Questions
Do I need a license to be an auctioneer in California?
No. California's Secretary of State does not issue licenses to auctioneers or auction companies. This has been true since the legislature repealed the state's former auctioneer licensing act in 1993.
Do I need a bond to be an auctioneer in California?
Yes, this is the one mandatory state-level requirement. California Civil Code § 1812.600 requires every auctioneer and auction company to maintain a $20,000 surety bond and file a copy of it with the Secretary of State before conducting business.
Why does California require a bond but not a license?
California used to license auctioneers through a dedicated state commission. In 1993, the legislature repealed that licensing system entirely and replaced it with the current bond requirement, shifting from a gatekeeping model to a consumer-protection model where harmed parties can make a claim against the bond.
How much does the California auctioneer bond cost?
The bond's principal amount is fixed by law at $20,000, but that's not what you pay out of pocket. The actual premium a surety company charges is typically a few hundred dollars for a two-year term.
Do I need to renew anything?
Yes. The bond must be renewed before its term (minimum 24 months) expires. If it lapses without a replacement bond filed, you're required to stop conducting auction business until a new bond is filed with the Secretary of State.
If California doesn't require a license, why take an auctioneer course?
Because the bond only protects consumers after something goes wrong, it doesn't teach you how to run a professional, profitable auction business. The chant, contract handling, ethics, and business fundamentals a quality course provides are what actually build a sustainable career, bond or no bond.