By: Goldman (Senate Sponsor - Kolkhorst) H.B. No. 1066
(In the Senate - Received from the House May 14, 2015;
May 19, 2015, read first time and referred to Committee on
Administration; May 24, 2015, reported favorably by the following
vote: Yeas 4, Nays 0; May 24, 2015, sent to printer.)
Click here to see the committee vote
A BILL TO BE ENTITLED
AN ACT
relating to the regulation of certain motor vehicle auctions.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 1802.002(a), Occupations Code, is
amended to read as follows:
(a) This chapter does not apply to:
(1) a sale conducted by order of a United States court
under Title 11, United States Code;
(2) a sale conducted by an employee of the United
States, this state, or a political subdivision of this state in the
course and scope of employment;
(3) a sale conducted by a charitable, religious, or
civic organization, including an organization having a tax exempt
status under Section 501(c), Internal Revenue Code of 1986, or
organized as a nonprofit entity, if the person organizing,
arranging, or conducting the auction receives no compensation;
(4) a sale conducted by any person of the person's
property if the person is not engaged in the business of selling
property at auction on a recurring basis;
(5) a foreclosure sale of real property personally
conducted by a trustee under a deed of trust;
(6) a foreclosure sale of personal property personally
conducted by:
(A) a person who holds a security interest in the
property, including a mortgage; or
(B) an employee or agent of a person described by
Paragraph (A) acting in the course and scope of employment, if:
(i) the employee or agent is not otherwise
engaged in the auction business; and
(ii) all property for sale in the auction is
subject to a security agreement;
(7) a sale conducted by sealed bid without the option
of increasing or decreasing the amount of a bid;
(8) an auction conducted only for student training
purposes as part of a course of study approved by the department;
(9) an auction conducted by a posted stockyard or
market agency as defined by the federal Packers and Stockyards Act
(7 U.S.C. Section 181 et seq.), as amended;
(10) an auction of livestock conducted by a nonprofit
livestock trade association chartered in this state, if the auction
involves only the sale of livestock owned by members of the trade
association;
(11) an auction conducted by a charitable or nonprofit
organization chartered in this state, if the auction:
(A) is part of a fair that is organized under
state, county, or municipal authority; and
(B) involves only the sale of property owned by
the organization's members; [or]
(12) a sale or auction conducted outside of this
state;
(13) a sale of motor vehicles at auction by a person
licensed under Chapter 2301 or 2302; or
(14) a sale of motor vehicles at auction by a person
who holds a wholesale motor vehicle auction general distinguishing
number or an independent motor vehicle general distinguishing
number issued by the Texas Department of Motor Vehicles.
SECTION 2. Section 1802.051, Occupations Code, is amended
by amending Subsection (c) and adding Subsection (d) to read as
follows:
(c) Except as provided by Subsection (d), an [An] individual
who is licensed under this chapter may not act as an auctioneer for
an entity unless the entity:
(1) is an auction company owned or operated by an
individual who is licensed under this chapter; or
(2) [holds a dealer general distinguishing number
issued under Subchapter B, Chapter 503, Transportation Code, and
the auction is for the purpose of auctioning vehicles as defined by
Section 503.001, Transportation Code; or
[(3)] is a real estate brokerage firm that is operated
by a broker licensed by the Texas Real Estate Commission.
(d) An auctioneer who is licensed under this chapter may
conduct an auction to sell motor vehicles, as defined by Section
501.002 or 502.001, Transportation Code, if the auctioneer conducts
the auction for a person who holds a dealer general distinguishing
number or wholesale motor vehicle auction general distinguishing
number issued under Subchapter B, Chapter 503, Transportation Code,
or a license issued under Subchapter C, Chapter 2302, of this code.
SECTION 3. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2015.
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