| 5 | 7 | | |
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| 6 | 8 | | |
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| 7 | 9 | | A BILL TO BE ENTITLED |
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| 8 | 10 | | AN ACT |
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| 9 | 11 | | relating to the regulation of certain motor vehicle auctions. |
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| 10 | 12 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 11 | 13 | | SECTION 1. Section 1802.002(a), Occupations Code, is |
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| 12 | 14 | | amended to read as follows: |
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| 13 | 15 | | (a) This chapter does not apply to: |
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| 14 | 16 | | (1) a sale conducted by order of a United States court |
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| 15 | 17 | | under Title 11, United States Code; |
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| 16 | 18 | | (2) a sale conducted by an employee of the United |
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| 17 | 19 | | States, this state, or a political subdivision of this state in the |
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| 18 | 20 | | course and scope of employment; |
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| 19 | 21 | | (3) a sale conducted by a charitable, religious, or |
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| 20 | 22 | | civic organization, including an organization having a tax exempt |
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| 21 | 23 | | status under Section 501(c), Internal Revenue Code of 1986, or |
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| 22 | 24 | | organized as a nonprofit entity, if the person organizing, |
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| 23 | 25 | | arranging, or conducting the auction receives no compensation; |
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| 24 | 26 | | (4) a sale conducted by any person of the person's |
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| 25 | 27 | | property if the person is not engaged in the business of selling |
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| 26 | 28 | | property at auction on a recurring basis; |
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| 27 | 29 | | (5) a foreclosure sale of real property personally |
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| 28 | 30 | | conducted by a trustee under a deed of trust; |
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| 29 | 31 | | (6) a foreclosure sale of personal property personally |
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| 30 | 32 | | conducted by: |
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| 31 | 33 | | (A) a person who holds a security interest in the |
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| 32 | 34 | | property, including a mortgage; or |
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| 33 | 35 | | (B) an employee or agent of a person described by |
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| 34 | 36 | | Paragraph (A) acting in the course and scope of employment, if: |
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| 35 | 37 | | (i) the employee or agent is not otherwise |
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| 36 | 38 | | engaged in the auction business; and |
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| 37 | 39 | | (ii) all property for sale in the auction is |
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| 38 | 40 | | subject to a security agreement; |
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| 39 | 41 | | (7) a sale conducted by sealed bid without the option |
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| 40 | 42 | | of increasing or decreasing the amount of a bid; |
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| 41 | 43 | | (8) an auction conducted only for student training |
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| 42 | 44 | | purposes as part of a course of study approved by the department; |
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| 43 | 45 | | (9) an auction conducted by a posted stockyard or |
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| 44 | 46 | | market agency as defined by the federal Packers and Stockyards Act |
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| 45 | 47 | | (7 U.S.C. Section 181 et seq.), as amended; |
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| 46 | 48 | | (10) an auction of livestock conducted by a nonprofit |
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| 47 | 49 | | livestock trade association chartered in this state, if the auction |
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| 48 | 50 | | involves only the sale of livestock owned by members of the trade |
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| 49 | 51 | | association; |
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| 50 | 52 | | (11) an auction conducted by a charitable or nonprofit |
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| 51 | 53 | | organization chartered in this state, if the auction: |
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| 52 | 54 | | (A) is part of a fair that is organized under |
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| 53 | 55 | | state, county, or municipal authority; and |
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| 54 | 56 | | (B) involves only the sale of property owned by |
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| 55 | 57 | | the organization's members; [or] |
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| 56 | 58 | | (12) a sale or auction conducted outside of this |
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| 57 | 59 | | state; |
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| 58 | 60 | | (13) a sale of motor vehicles at auction by a person |
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| 59 | 61 | | licensed under Chapter 2301 or 2302; or |
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| 60 | 62 | | (14) a sale of motor vehicles at auction by a person |
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| 61 | 63 | | who holds a wholesale motor vehicle auction general distinguishing |
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| 62 | 64 | | number or an independent motor vehicle general distinguishing |
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| 63 | 65 | | number issued by the Texas Department of Motor Vehicles. |
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| 64 | 66 | | SECTION 2. Section 1802.051, Occupations Code, is amended |
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| 65 | 67 | | by amending Subsection (c) and adding Subsection (d) to read as |
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| 66 | 68 | | follows: |
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| 67 | 69 | | (c) Except as provided by Subsection (d), an [An] individual |
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| 68 | 70 | | who is licensed under this chapter may not act as an auctioneer for |
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| 69 | 71 | | an entity unless the entity: |
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| 70 | 72 | | (1) is an auction company owned or operated by an |
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| 71 | 73 | | individual who is licensed under this chapter; or |
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| 72 | 74 | | (2) [holds a dealer general distinguishing number |
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| 73 | 75 | | issued under Subchapter B, Chapter 503, Transportation Code, and |
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| 74 | 76 | | the auction is for the purpose of auctioning vehicles as defined by |
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| 75 | 77 | | Section 503.001, Transportation Code; or |
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| 76 | 78 | | [(3)] is a real estate brokerage firm that is operated |
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| 77 | 79 | | by a broker licensed by the Texas Real Estate Commission. |
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| 78 | 80 | | (d) An auctioneer who is licensed under this chapter may |
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| 79 | 81 | | conduct an auction to sell motor vehicles, as defined by Section |
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| 80 | 82 | | 501.002 or 502.001, Transportation Code, if the auctioneer conducts |
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| 81 | 83 | | the auction for a person who holds a dealer general distinguishing |
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| 82 | 84 | | number or wholesale motor vehicle auction general distinguishing |
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| 83 | 85 | | number issued under Subchapter B, Chapter 503, Transportation Code, |
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| 84 | 86 | | or a license issued under Subchapter C, Chapter 2302, of this code. |
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| 85 | 87 | | SECTION 3. This Act takes effect immediately if it receives |
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| 86 | 88 | | a vote of two-thirds of all the members elected to each house, as |
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| 87 | 89 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 88 | 90 | | Act does not receive the vote necessary for immediate effect, this |
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| 89 | 91 | | Act takes effect September 1, 2015. |
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