84R19966 EES-F
By: Smith H.B. No. 2481
Substitute the following for H.B. No. 2481:
By: Smith C.S.H.B. No. 2481
A BILL TO BE ENTITLED
AN ACT
relating to the licensing and regulation of auctioneers and
associate auctioneers; amending provisions subject to a criminal
penalty; requiring an occupational license; requiring a fee.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 1802.001, Occupations Code, is amended
by amending Subdivisions (1), (5), and (10) and adding Subdivision
(2) to read as follows:
(1) "Advisory board" means the Auctioneer [Education]
Advisory Board.
(2) "Associate auctioneer" means an individual who,
for compensation, is employed by and under the direct supervision
of a licensed auctioneer to sell or offer to sell property at an
auction.
(5) "Auctioneer" means any individual [person] who[:
[(A)] sells or offers to sell property of another
person by live bid at auction, with or without receiving
consideration[; or
[(B) solicits, negotiates, or executes an
auction listing contract].
(10) "Personal property" means any property other than
real property[, including all tangible and intangible types of
property].
SECTION 2. 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;
(5) [(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;
(6) [(7)] a sale conducted by sealed bid without the
option of increasing or decreasing the amount of a bid;
(7) [(8)] an auction conducted only for student
training purposes as part of a course of study approved by the
department;
(8) [(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;
(9) [(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;
(10) [(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]
(11) [(12)] a sale or auction conducted by an
auctioneer while the auctioneer is physically located outside of
this state;
(12) a sale of motor vehicles at auction by a person
licensed under Chapter 2301 or 2302;
(13) 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; or
(14) an auction of property through the Internet.
SECTION 3. Subchapter A, Chapter 1802, Occupations Code, is
amended by adding Section 1802.004 to read as follows:
Sec. 1802.004. ADVERTISEMENT OF AUCTION. The commission,
by rule, may adopt standards for the advertisement of an auction by
an auctioneer or associate auctioneer licensed under this chapter.
SECTION 4. Section 1802.051, Occupations Code, is amended
by amending Subsections (a) and (c) and adding Subsection (d) to
read as follows:
(a) A person may not act as an auctioneer or associate
auctioneer [of real or personal property] in this state unless the
person holds a license issued by the executive director under this
chapter.
(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[;
[(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 individual 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 individual 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 5. Section 1802.052(a), Occupations Code, is
amended to read as follows:
(a) An individual is eligible for an auctioneer's license if
the individual:
(1) is at least 18 years of age;
(2) is a citizen of the United States or a legal alien;
(3) either:
(A) passes a written or oral examination
demonstrating knowledge of the auction business and of the laws of
this state relating to the auction business; or
(B) shows proof of employment by a licensed
auctioneer for at least two years and participation in at least 10
auctions during that employment;
(4) holds a high school diploma or a high school
equivalency certificate;
(5) has not been convicted of a felony during the five
years preceding the date of application; and
(6) has completed at least 80 hours of classroom
instruction at an auction school with a curriculum approved by the
department in accordance with the standards and procedures
established by rule adopted under this chapter.
SECTION 6. Subchapter B, Chapter 1802, Occupations Code, is
amended by adding Section 1802.053 to read as follows:
Sec. 1802.053. ELIGIBILITY FOR ASSOCIATE AUCTIONEER
LICENSE. An individual is eligible for an associate auctioneer
license if the individual is:
(1) a citizen of the United States or a legal alien;
and
(2) employed under the direct supervision of an
auctioneer licensed under this chapter.
SECTION 7. Section 1802.054, Occupations Code, is amended
to read as follows:
Sec. 1802.054. APPLICATION FOR LICENSE. An applicant for a
license must apply to the executive director on a form provided by
the executive director that establishes the applicant's
eligibility for the license. The application must be accompanied
by:
(1) any fee required for the auctioneer education and
recovery fund authorized under Section 1802.153;
(2) the required application [license] fee; and
(3) either:
(A) the permit number of a sales tax permit
issued to the applicant by the comptroller under Subchapter F,
Chapter 151, Tax Code; or
(B) proof of exemption from the tax permit
requirement under Chapter 151, Tax Code.
SECTION 8. Section 1802.055, Occupations Code, is amended
to read as follows:
Sec. 1802.055. APPLICATION FOR EXAMINATION. [(a)] An
individual who establishes that the individual is eligible for an
auctioneer's license may apply to the executive director to take
the license examination. The application must be accompanied by
the application [examination] fee.
[(b) On receipt of an examination application and fee, the
executive director shall furnish the applicant with:
[(1) study materials and references on which the
examination will be based; and
[(2) a schedule specifying the dates and places the
examination will be offered.
[(c) The applicant may take the examination at any scheduled
offering not later than the 90th day after the date the applicant
receives the study materials.]
SECTION 9. Section 1802.059(b), Occupations Code, is
amended to read as follows:
(b) The executive director shall accept the applicant's
auctioneer's license submitted under Subsection (a)(2) as proof of
the applicant's professional competence and waive the examination
or employment and training requirements of Section 1802.052 if the
state or political subdivision that issued the nonresident a
license extends similar recognition and courtesies to this state.
SECTION 10. The heading to Subchapter C, Chapter 1802,
Occupations Code, is amended to read as follows:
SUBCHAPTER C. AUCTIONEER [EDUCATION] ADVISORY BOARD
SECTION 11. The heading to Section 1802.101, Occupations
Code, is amended to read as follows:
Sec. 1802.101. AUCTIONEER [EDUCATION] ADVISORY BOARD.
SECTION 12. Section 1802.106, Occupations Code, is amended
to read as follows:
Sec. 1802.106. COMPENSATION. A member appointed under
Section 1802.102(a)(1) may not receive[:
[(1)] compensation for serving on the advisory board[;
or
[(2) reimbursement for expenses].
SECTION 13. Section 1802.107, Occupations Code, is amended
to read as follows:
Sec. 1802.107. MEETINGS. [(a) The advisory board shall
meet at least quarterly each calendar year.
[(b)] The advisory board shall [may] meet [at other times]
at the call of the presiding officer of the commission or the
executive director.
SECTION 14. Sections 1802.001(12) and 1802.051(b),
Occupations Code, are repealed.
SECTION 15. Not later than March 1, 2016, the Texas
Commission of Licensing and Regulation shall adopt rules necessary
to implement the changes in law made by this Act.
SECTION 16. (a) Notwithstanding Chapter 1802, Occupations
Code, as amended by this Act, a person is not required to hold a
license issued under that chapter to act as an associate auctioneer
until March 1, 2016.
(b) An individual who was licensed by the Texas Department
of Licensing and Regulation as an associate auctioneer on or before
June 14, 2013, may apply the individual's work experience
participating in auctions as an associate auctioneer on or before
June 14, 2013, toward the individual's eligibility for an
auctioneer's license under Chapter 1802, Occupations Code.
SECTION 17. This Act takes effect September 1, 2015.