Texas 2015 - 84th Regular

Texas Senate Bill SB1443 Compare Versions

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11 84R8583 EES-F
22 By: Eltife S.B. No. 1443
33
44
55 A BILL TO BE ENTITLED
66 AN ACT
77 relating to the licensing and regulation of auctioneers and
88 associate auctioneers; amending provisions subject to a criminal
99 penalty; requiring an occupational license.
1010 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1111 SECTION 1. Section 1802.001, Occupations Code, is amended
1212 by amending Subdivisions (1), (5), and (10) and adding Subdivision
1313 (2) to read as follows:
1414 (1) "Advisory board" means the Auctioneer [Education]
1515 Advisory Board.
1616 (2) "Associate auctioneer" means an individual who,
1717 for compensation, is employed by and under the direct supervision
1818 of a licensed auctioneer to sell or offer to sell property at an
1919 auction.
2020 (5) "Auctioneer" means any individual [person] who[:
2121 [(A)] sells or offers to sell property of another
2222 person by live bid at auction, with or without receiving
2323 consideration[; or
2424 [(B) solicits, negotiates, or executes an
2525 auction listing contract].
2626 (10) "Personal property" means any property other than
2727 real property[, including all tangible and intangible types of
2828 property].
2929 SECTION 2. Section 1802.002(a), Occupations Code, is
3030 amended to read as follows:
3131 (a) This chapter does not apply to:
3232 (1) a sale conducted by order of a United States court
3333 under Title 11, United States Code;
3434 (2) a sale conducted by an employee of the United
3535 States, this state, or a political subdivision of this state in the
3636 course and scope of employment;
3737 (3) a sale conducted by a charitable, religious, or
3838 civic organization, including an organization having a tax exempt
3939 status under Section 501(c), Internal Revenue Code of 1986, or
4040 organized as a nonprofit entity, if the person organizing,
4141 arranging, or conducting the auction receives no compensation;
4242 (4) [a sale conducted by any person of the person's
4343 property if the person is not engaged in the business of selling
4444 property at auction on a recurring basis;
4545 [(5)] a foreclosure sale of real property personally
4646 conducted by a trustee under a deed of trust;
4747 (5) [(6)] a foreclosure sale of personal property
4848 personally conducted by:
4949 (A) a person who holds a security interest in the
5050 property, including a mortgage; or
5151 (B) an employee or agent of a person described by
5252 Paragraph (A) acting in the course and scope of employment, if:
5353 (i) the employee or agent is not otherwise
5454 engaged in the auction business; and
5555 (ii) all property for sale in the auction is
5656 subject to a security agreement;
5757 (6) [(7)] a sale conducted by sealed bid without the
5858 option of increasing or decreasing the amount of a bid;
5959 (7) [(8)] an auction conducted only for student
6060 training purposes as part of a course of study approved by the
6161 department;
6262 (8) [(9)] an auction conducted by a posted stockyard
6363 or market agency as defined by the federal Packers and Stockyards
6464 Act (7 U.S.C. Section 181 et seq.), as amended;
6565 (9) [(10)] an auction of livestock conducted by a
6666 nonprofit livestock trade association chartered in this state, if
6767 the auction involves only the sale of livestock owned by members of
6868 the trade association;
6969 (10) [(11)] an auction conducted by a charitable or
7070 nonprofit organization chartered in this state, if the auction:
7171 (A) is part of a fair that is organized under
7272 state, county, or municipal authority; and
7373 (B) involves only the sale of property owned by
7474 the organization's members; [or]
7575 (11) [(12)] a sale or auction conducted by an
7676 auctioneer while the auctioneer is physically located outside of
7777 this state;
7878 (12) a sale of motor vehicles at auction by a person
7979 licensed under Chapter 2301 or 2302;
8080 (13) a sale of motor vehicles at auction by a person
8181 who holds a wholesale motor vehicle auction general distinguishing
8282 number or an independent motor vehicle general distinguishing
8383 number issued by the Texas Department of Motor Vehicles; or
8484 (14) an auction of property through the Internet.
8585 SECTION 3. Section 1802.051, Occupations Code, is amended
8686 to read as follows:
8787 Sec. 1802.051. LICENSE REQUIRED. (a) A person may not act
8888 as an auctioneer or associate auctioneer [of real or personal
8989 property] in this state unless the person holds a license issued by
9090 the executive director under this chapter.
9191 (b) A person [An auctioneer] who advertises to conduct an
9292 auction in this state shall provide the [auctioneer's] name and
9393 license number of the auctioneer who will conduct the auction in the
9494 advertisement.
9595 (c) Except as provided by Subsection (d), an [An] individual
9696 who is licensed under this chapter may not act as an auctioneer for
9797 an entity unless the entity[:
9898 [(1)] is an auction company owned or operated by an
9999 individual who is licensed under this chapter[;
100100 [(2) holds a dealer general distinguishing number
101101 issued under Subchapter B, Chapter 503, Transportation Code, and
102102 the auction is for the purpose of auctioning vehicles as defined by
103103 Section 503.001, Transportation Code; or
104104 [(3) is a real estate brokerage firm that is operated
105105 by a broker licensed by the Texas Real Estate Commission].
106106 (d) An individual who is licensed under this chapter may
107107 only conduct an auction to sell motor vehicles, as defined by
108108 Section 502.001, Transportation Code, if the license holder
109109 conducts the auction for a person who holds a dealer general
110110 distinguishing number issued under Subchapter B, Chapter 503,
111111 Transportation Code.
112112 SECTION 4. Section 1802.052(a), Occupations Code, is
113113 amended to read as follows:
114114 (a) An individual is eligible for an auctioneer's license if
115115 the individual:
116116 (1) is at least 18 years of age;
117117 (2) is a citizen of the United States or a legal alien;
118118 (3) either:
119119 (A) passes a written or oral examination
120120 demonstrating knowledge of the auction business and of the laws of
121121 this state relating to the auction business; or
122122 (B) shows proof of employment by a licensed
123123 auctioneer for at least two years and participation in at least 10
124124 auctions during that employment;
125125 (4) holds a high school diploma or a high school
126126 equivalency certificate;
127127 (5) has not been convicted of a felony during the five
128128 years preceding the date of application; and
129129 (6) has completed at least 80 hours of classroom
130130 instruction at an auction school with a curriculum approved by the
131131 department in accordance with the standards and procedures
132132 established by rule adopted under this chapter.
133133 SECTION 5. Subchapter B, Chapter 1802, Occupations Code, is
134134 amended by adding Section 1802.053 to read as follows:
135135 Sec. 1802.053. ELIGIBILITY FOR ASSOCIATE AUCTIONEER
136136 LICENSE. An individual is eligible for an associate auctioneer
137137 license if the individual is:
138138 (1) a citizen of the United States or a legal alien;
139139 and
140140 (2) employed under the direct supervision of an
141141 auctioneer licensed under this chapter.
142142 SECTION 6. Section 1802.054, Occupations Code, is amended
143143 to read as follows:
144144 Sec. 1802.054. APPLICATION FOR LICENSE. An applicant for a
145145 license must apply to the executive director on a form provided by
146146 the executive director that establishes the applicant's
147147 eligibility for the license. The application must be accompanied
148148 by:
149149 (1) any fee required for the auctioneer education and
150150 recovery fund authorized under Section 1802.153;
151151 (2) the required application [license] fee; and
152152 (3) either:
153153 (A) the permit number of a sales tax permit
154154 issued to the applicant by the comptroller under Subchapter F,
155155 Chapter 151, Tax Code; or
156156 (B) proof of exemption from the tax permit
157157 requirement under Chapter 151, Tax Code.
158158 SECTION 7. Section 1802.055, Occupations Code, is amended
159159 to read as follows:
160160 Sec. 1802.055. APPLICATION FOR EXAMINATION. [(a)] An
161161 individual who establishes that the individual is eligible for an
162162 auctioneer's license may apply to the executive director to take
163163 the license examination. The application must be accompanied by
164164 the application [examination] fee.
165165 [(b) On receipt of an examination application and fee, the
166166 executive director shall furnish the applicant with:
167167 [(1) study materials and references on which the
168168 examination will be based; and
169169 [(2) a schedule specifying the dates and places the
170170 examination will be offered.
171171 [(c) The applicant may take the examination at any scheduled
172172 offering not later than the 90th day after the date the applicant
173173 receives the study materials.]
174174 SECTION 8. Section 1802.059(b), Occupations Code, is
175175 amended to read as follows:
176176 (b) The executive director shall accept the applicant's
177177 auctioneer's license submitted under Subsection (a)(2) as proof of
178178 the applicant's professional competence and waive the examination
179179 or employment and training requirements of Section 1802.052 if the
180180 state or political subdivision that issued the nonresident a
181181 license extends similar recognition and courtesies to this state.
182182 SECTION 9. The heading to Subchapter C, Chapter 1802,
183183 Occupations Code, is amended to read as follows:
184184 SUBCHAPTER C. AUCTIONEER [EDUCATION] ADVISORY BOARD
185185 SECTION 10. The heading to Section 1802.101, Occupations
186186 Code, is amended to read as follows:
187187 Sec. 1802.101. AUCTIONEER [EDUCATION] ADVISORY BOARD.
188188 SECTION 11. Section 1802.106, Occupations Code, is amended
189189 to read as follows:
190190 Sec. 1802.106. COMPENSATION. A member appointed under
191191 Section 1802.102(a)(1) may not receive[:
192192 [(1)] compensation for serving on the advisory board[;
193193 or
194194 [(2) reimbursement for expenses].
195195 SECTION 12. Section 1802.107, Occupations Code, is amended
196196 to read as follows:
197197 Sec. 1802.107. MEETINGS. [(a) The advisory board shall
198198 meet at least quarterly each calendar year.
199199 [(b)] The advisory board shall [may] meet [at other times]
200200 at the call of the presiding officer of the commission or the
201201 executive director.
202202 SECTION 13. Section 1802.001(12), Occupations Code, is
203203 repealed.
204204 SECTION 14. Not later than March 1, 2016, the Texas
205205 Commission of Licensing and Regulation shall adopt rules necessary
206206 to implement the changes in law made by this Act.
207207 SECTION 15. (a) Notwithstanding Chapter 1802, Occupations
208208 Code, as amended by this Act, a person is not required to hold a
209209 license issued under that chapter to act as an associate auctioneer
210210 until March 1, 2016.
211211 (b) An individual who was licensed by the Texas Department
212212 of Licensing and Regulation as an associate auctioneer on or before
213213 June 14, 2013, may apply the individual's work experience
214214 participating in auctions as an associate auctioneer on or before
215215 June 14, 2013, toward the individual's eligibility for an
216216 auctioneer's license under Chapter 1802, Occupations Code.
217217 SECTION 16. This Act takes effect September 1, 2015.