1 | 1 | | 84R8583 EES-F |
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2 | 2 | | By: Eltife S.B. No. 1443 |
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3 | 3 | | |
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4 | 4 | | |
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5 | 5 | | A BILL TO BE ENTITLED |
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6 | 6 | | AN ACT |
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7 | 7 | | relating to the licensing and regulation of auctioneers and |
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8 | 8 | | associate auctioneers; amending provisions subject to a criminal |
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9 | 9 | | penalty; requiring an occupational license. |
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10 | 10 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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11 | 11 | | SECTION 1. Section 1802.001, Occupations Code, is amended |
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12 | 12 | | by amending Subdivisions (1), (5), and (10) and adding Subdivision |
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13 | 13 | | (2) to read as follows: |
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14 | 14 | | (1) "Advisory board" means the Auctioneer [Education] |
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15 | 15 | | Advisory Board. |
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16 | 16 | | (2) "Associate auctioneer" means an individual who, |
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17 | 17 | | for compensation, is employed by and under the direct supervision |
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18 | 18 | | of a licensed auctioneer to sell or offer to sell property at an |
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19 | 19 | | auction. |
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20 | 20 | | (5) "Auctioneer" means any individual [person] who[: |
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21 | 21 | | [(A)] sells or offers to sell property of another |
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22 | 22 | | person by live bid at auction, with or without receiving |
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23 | 23 | | consideration[; or |
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24 | 24 | | [(B) solicits, negotiates, or executes an |
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25 | 25 | | auction listing contract]. |
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26 | 26 | | (10) "Personal property" means any property other than |
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27 | 27 | | real property[, including all tangible and intangible types of |
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28 | 28 | | property]. |
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29 | 29 | | SECTION 2. Section 1802.002(a), Occupations Code, is |
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30 | 30 | | amended to read as follows: |
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31 | 31 | | (a) This chapter does not apply to: |
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32 | 32 | | (1) a sale conducted by order of a United States court |
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33 | 33 | | under Title 11, United States Code; |
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34 | 34 | | (2) a sale conducted by an employee of the United |
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35 | 35 | | States, this state, or a political subdivision of this state in the |
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36 | 36 | | course and scope of employment; |
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37 | 37 | | (3) a sale conducted by a charitable, religious, or |
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38 | 38 | | civic organization, including an organization having a tax exempt |
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39 | 39 | | status under Section 501(c), Internal Revenue Code of 1986, or |
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40 | 40 | | organized as a nonprofit entity, if the person organizing, |
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41 | 41 | | arranging, or conducting the auction receives no compensation; |
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42 | 42 | | (4) [a sale conducted by any person of the person's |
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43 | 43 | | property if the person is not engaged in the business of selling |
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44 | 44 | | property at auction on a recurring basis; |
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45 | 45 | | [(5)] a foreclosure sale of real property personally |
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46 | 46 | | conducted by a trustee under a deed of trust; |
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47 | 47 | | (5) [(6)] a foreclosure sale of personal property |
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48 | 48 | | personally conducted by: |
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49 | 49 | | (A) a person who holds a security interest in the |
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50 | 50 | | property, including a mortgage; or |
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51 | 51 | | (B) an employee or agent of a person described by |
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52 | 52 | | Paragraph (A) acting in the course and scope of employment, if: |
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53 | 53 | | (i) the employee or agent is not otherwise |
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54 | 54 | | engaged in the auction business; and |
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55 | 55 | | (ii) all property for sale in the auction is |
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56 | 56 | | subject to a security agreement; |
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57 | 57 | | (6) [(7)] a sale conducted by sealed bid without the |
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58 | 58 | | option of increasing or decreasing the amount of a bid; |
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59 | 59 | | (7) [(8)] an auction conducted only for student |
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60 | 60 | | training purposes as part of a course of study approved by the |
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61 | 61 | | department; |
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62 | 62 | | (8) [(9)] an auction conducted by a posted stockyard |
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63 | 63 | | or market agency as defined by the federal Packers and Stockyards |
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64 | 64 | | Act (7 U.S.C. Section 181 et seq.), as amended; |
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65 | 65 | | (9) [(10)] an auction of livestock conducted by a |
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66 | 66 | | nonprofit livestock trade association chartered in this state, if |
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67 | 67 | | the auction involves only the sale of livestock owned by members of |
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68 | 68 | | the trade association; |
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69 | 69 | | (10) [(11)] an auction conducted by a charitable or |
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70 | 70 | | nonprofit organization chartered in this state, if the auction: |
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71 | 71 | | (A) is part of a fair that is organized under |
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72 | 72 | | state, county, or municipal authority; and |
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73 | 73 | | (B) involves only the sale of property owned by |
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74 | 74 | | the organization's members; [or] |
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75 | 75 | | (11) [(12)] a sale or auction conducted by an |
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76 | 76 | | auctioneer while the auctioneer is physically located outside of |
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77 | 77 | | this state; |
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78 | 78 | | (12) a sale of motor vehicles at auction by a person |
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79 | 79 | | licensed under Chapter 2301 or 2302; |
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80 | 80 | | (13) a sale of motor vehicles at auction by a person |
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81 | 81 | | who holds a wholesale motor vehicle auction general distinguishing |
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82 | 82 | | number or an independent motor vehicle general distinguishing |
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83 | 83 | | number issued by the Texas Department of Motor Vehicles; or |
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84 | 84 | | (14) an auction of property through the Internet. |
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85 | 85 | | SECTION 3. Section 1802.051, Occupations Code, is amended |
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86 | 86 | | to read as follows: |
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87 | 87 | | Sec. 1802.051. LICENSE REQUIRED. (a) A person may not act |
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88 | 88 | | as an auctioneer or associate auctioneer [of real or personal |
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89 | 89 | | property] in this state unless the person holds a license issued by |
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90 | 90 | | the executive director under this chapter. |
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91 | 91 | | (b) A person [An auctioneer] who advertises to conduct an |
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92 | 92 | | auction in this state shall provide the [auctioneer's] name and |
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93 | 93 | | license number of the auctioneer who will conduct the auction in the |
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94 | 94 | | advertisement. |
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95 | 95 | | (c) Except as provided by Subsection (d), an [An] individual |
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96 | 96 | | who is licensed under this chapter may not act as an auctioneer for |
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97 | 97 | | an entity unless the entity[: |
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98 | 98 | | [(1)] is an auction company owned or operated by an |
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99 | 99 | | individual who is licensed under this chapter[; |
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100 | 100 | | [(2) holds a dealer general distinguishing number |
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101 | 101 | | issued under Subchapter B, Chapter 503, Transportation Code, and |
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102 | 102 | | the auction is for the purpose of auctioning vehicles as defined by |
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103 | 103 | | Section 503.001, Transportation Code; or |
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104 | 104 | | [(3) is a real estate brokerage firm that is operated |
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105 | 105 | | by a broker licensed by the Texas Real Estate Commission]. |
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106 | 106 | | (d) An individual who is licensed under this chapter may |
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107 | 107 | | only conduct an auction to sell motor vehicles, as defined by |
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108 | 108 | | Section 502.001, Transportation Code, if the license holder |
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109 | 109 | | conducts the auction for a person who holds a dealer general |
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110 | 110 | | distinguishing number issued under Subchapter B, Chapter 503, |
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111 | 111 | | Transportation Code. |
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112 | 112 | | SECTION 4. Section 1802.052(a), Occupations Code, is |
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113 | 113 | | amended to read as follows: |
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114 | 114 | | (a) An individual is eligible for an auctioneer's license if |
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115 | 115 | | the individual: |
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116 | 116 | | (1) is at least 18 years of age; |
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117 | 117 | | (2) is a citizen of the United States or a legal alien; |
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118 | 118 | | (3) either: |
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119 | 119 | | (A) passes a written or oral examination |
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120 | 120 | | demonstrating knowledge of the auction business and of the laws of |
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121 | 121 | | this state relating to the auction business; or |
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122 | 122 | | (B) shows proof of employment by a licensed |
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123 | 123 | | auctioneer for at least two years and participation in at least 10 |
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124 | 124 | | auctions during that employment; |
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125 | 125 | | (4) holds a high school diploma or a high school |
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126 | 126 | | equivalency certificate; |
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127 | 127 | | (5) has not been convicted of a felony during the five |
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128 | 128 | | years preceding the date of application; and |
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129 | 129 | | (6) has completed at least 80 hours of classroom |
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130 | 130 | | instruction at an auction school with a curriculum approved by the |
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131 | 131 | | department in accordance with the standards and procedures |
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132 | 132 | | established by rule adopted under this chapter. |
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133 | 133 | | SECTION 5. Subchapter B, Chapter 1802, Occupations Code, is |
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134 | 134 | | amended by adding Section 1802.053 to read as follows: |
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135 | 135 | | Sec. 1802.053. ELIGIBILITY FOR ASSOCIATE AUCTIONEER |
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136 | 136 | | LICENSE. An individual is eligible for an associate auctioneer |
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137 | 137 | | license if the individual is: |
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138 | 138 | | (1) a citizen of the United States or a legal alien; |
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139 | 139 | | and |
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140 | 140 | | (2) employed under the direct supervision of an |
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141 | 141 | | auctioneer licensed under this chapter. |
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142 | 142 | | SECTION 6. Section 1802.054, Occupations Code, is amended |
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143 | 143 | | to read as follows: |
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144 | 144 | | Sec. 1802.054. APPLICATION FOR LICENSE. An applicant for a |
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145 | 145 | | license must apply to the executive director on a form provided by |
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146 | 146 | | the executive director that establishes the applicant's |
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147 | 147 | | eligibility for the license. The application must be accompanied |
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148 | 148 | | by: |
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149 | 149 | | (1) any fee required for the auctioneer education and |
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150 | 150 | | recovery fund authorized under Section 1802.153; |
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151 | 151 | | (2) the required application [license] fee; and |
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152 | 152 | | (3) either: |
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153 | 153 | | (A) the permit number of a sales tax permit |
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154 | 154 | | issued to the applicant by the comptroller under Subchapter F, |
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155 | 155 | | Chapter 151, Tax Code; or |
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156 | 156 | | (B) proof of exemption from the tax permit |
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157 | 157 | | requirement under Chapter 151, Tax Code. |
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158 | 158 | | SECTION 7. Section 1802.055, Occupations Code, is amended |
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159 | 159 | | to read as follows: |
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160 | 160 | | Sec. 1802.055. APPLICATION FOR EXAMINATION. [(a)] An |
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161 | 161 | | individual who establishes that the individual is eligible for an |
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162 | 162 | | auctioneer's license may apply to the executive director to take |
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163 | 163 | | the license examination. The application must be accompanied by |
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164 | 164 | | the application [examination] fee. |
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165 | 165 | | [(b) On receipt of an examination application and fee, the |
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166 | 166 | | executive director shall furnish the applicant with: |
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167 | 167 | | [(1) study materials and references on which the |
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168 | 168 | | examination will be based; and |
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169 | 169 | | [(2) a schedule specifying the dates and places the |
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170 | 170 | | examination will be offered. |
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171 | 171 | | [(c) The applicant may take the examination at any scheduled |
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172 | 172 | | offering not later than the 90th day after the date the applicant |
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173 | 173 | | receives the study materials.] |
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174 | 174 | | SECTION 8. Section 1802.059(b), Occupations Code, is |
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175 | 175 | | amended to read as follows: |
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176 | 176 | | (b) The executive director shall accept the applicant's |
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177 | 177 | | auctioneer's license submitted under Subsection (a)(2) as proof of |
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178 | 178 | | the applicant's professional competence and waive the examination |
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179 | 179 | | or employment and training requirements of Section 1802.052 if the |
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180 | 180 | | state or political subdivision that issued the nonresident a |
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181 | 181 | | license extends similar recognition and courtesies to this state. |
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182 | 182 | | SECTION 9. The heading to Subchapter C, Chapter 1802, |
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183 | 183 | | Occupations Code, is amended to read as follows: |
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184 | 184 | | SUBCHAPTER C. AUCTIONEER [EDUCATION] ADVISORY BOARD |
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185 | 185 | | SECTION 10. The heading to Section 1802.101, Occupations |
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186 | 186 | | Code, is amended to read as follows: |
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187 | 187 | | Sec. 1802.101. AUCTIONEER [EDUCATION] ADVISORY BOARD. |
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188 | 188 | | SECTION 11. Section 1802.106, Occupations Code, is amended |
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189 | 189 | | to read as follows: |
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190 | 190 | | Sec. 1802.106. COMPENSATION. A member appointed under |
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191 | 191 | | Section 1802.102(a)(1) may not receive[: |
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192 | 192 | | [(1)] compensation for serving on the advisory board[; |
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193 | 193 | | or |
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194 | 194 | | [(2) reimbursement for expenses]. |
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195 | 195 | | SECTION 12. Section 1802.107, Occupations Code, is amended |
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196 | 196 | | to read as follows: |
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197 | 197 | | Sec. 1802.107. MEETINGS. [(a) The advisory board shall |
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198 | 198 | | meet at least quarterly each calendar year. |
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199 | 199 | | [(b)] The advisory board shall [may] meet [at other times] |
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200 | 200 | | at the call of the presiding officer of the commission or the |
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201 | 201 | | executive director. |
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202 | 202 | | SECTION 13. Section 1802.001(12), Occupations Code, is |
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203 | 203 | | repealed. |
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204 | 204 | | SECTION 14. Not later than March 1, 2016, the Texas |
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205 | 205 | | Commission of Licensing and Regulation shall adopt rules necessary |
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206 | 206 | | to implement the changes in law made by this Act. |
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207 | 207 | | SECTION 15. (a) Notwithstanding Chapter 1802, Occupations |
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208 | 208 | | Code, as amended by this Act, a person is not required to hold a |
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209 | 209 | | license issued under that chapter to act as an associate auctioneer |
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210 | 210 | | until March 1, 2016. |
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211 | 211 | | (b) An individual who was licensed by the Texas Department |
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212 | 212 | | of Licensing and Regulation as an associate auctioneer on or before |
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213 | 213 | | June 14, 2013, may apply the individual's work experience |
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214 | 214 | | participating in auctions as an associate auctioneer on or before |
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215 | 215 | | June 14, 2013, toward the individual's eligibility for an |
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216 | 216 | | auctioneer's license under Chapter 1802, Occupations Code. |
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217 | 217 | | SECTION 16. This Act takes effect September 1, 2015. |
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