By: Johnson H.B. No. 3702
A BILL TO BE ENTITLED
AN ACT
relating to the licensing and regulation of Auctioneers.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 1802.001, Occupations Code, is amended
to read as follows:
Sec. 1802.001. DEFINITIONS. In this chapter:
(1) "Advisory board" means the Auctioneer [Education]
Advisory Board.
(3) "Auction" means the sale of property by
competitive bid using any method, format, or venue.
(4) "Auction company" means a person who engages in
the business of arranging, managing, sponsoring, advertising, or
conducting auctions.
(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].
(6) "Commission" means the Texas Commission of
Licensing and Regulation.
(8) "Department" means the Texas Department of
Licensing and Regulation.
(8-a) "Executive director" means the executive
director of the department.
(9) "Fund" means the auctioneer education and recovery
fund.
(10) "Personal property" means any property other than
real property[, including all tangible and intangible types of
property].
(11) "Real property" means land, including
improvements, fixtures, and other property appurtenant to or used
in connection with the land, and any other estate, interest, or
legal or equitable right in the land, improvement, fixture, or
appurtenant property.
[(12) "Recurring basis" means more than once every 24
months.]
(13) "Sealed bid auction" means a sealed bidding
procedure that incorporates or allows for the competitive
increasing or decreasing of bids after the opening of sealed bids.
SECTION 2. Section 1802.002(a), Occupations Code, is
amended to read as follows:
Sec. 1802.002. APPLICABILITY. (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 by an auctioneer,
while the auctioneer is physically located outside of this state.
SECTION 3. This Act takes effect on September 1, 2015.
SECTION 4. Not later than March 1, 2016, the Texas
Commission of Licensing and Regulation shall adopt rules to
implement the changes made by this Act.