83R8857 EES-D
 
  By: Anderson H.B. No. 3038
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to licensing and regulation of auctioneers; authorizing 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 (3) and (5) and adding Subdivisions (10),
  (11), (12), and (13) to read as follows:
               (3)  "Auction" means the sale of property by
  competitive bid using any method, format, or venue.
               (5)  "Auctioneer" means any person [an individual] who:
                     (A)  sells or offers to sell property at auction,
  with or without receiving [valuable] consideration; or
                     (B)  solicits, negotiates, or executes an auction
  listing contract [, as a bid caller].
               (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.  Sections 1802.002 and 1802.003, Occupations
  Code, are 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 [an individual] of
  the person's [individual's] property if the person [individual] is
  not engaged in the business of selling property at auction [as an
  auctioneer] 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
  [executive director for auctioneers];
               (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; or
               (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.
         (b)  This chapter applies to a sealed bid auction.
         Sec. 1802.003.  PREEMPTION. A political subdivision of this
  state may not levy on or collect from an auctioneer [or associate
  auctioneer] a license tax or fee as a regulatory or revenue measure
  or require the licensing of an auctioneer [or associate
  auctioneer], if the auctioneer [or associate auctioneer] holds a
  license under this chapter and is in compliance with this chapter.
         SECTION 3.  Sections 1802.051(a) and (c), Occupations Code,
  are amended to read as follows:
         (a)  A person may not act as an auctioneer of real or personal
  property [or associate auctioneer in an auction held] in this state
  unless the person [is an individual who] holds a license issued by
  the executive director under this chapter.
         (c)  An individual [A person] 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 [a person] 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.
         SECTION 4.  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 during which the applicant
  performed the duties of an auctioneer [participated] in at least 10
  auctions;
               (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 5.  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 [the required
  bond];
               (2)  the required 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 6.  Section 1802.101, Occupations Code, is amended
  to read as follows:
         Sec. 1802.101.  AUCTIONEER EDUCATION ADVISORY BOARD. The
  advisory board shall advise the department [commission] on
  educational matters, operational matters, and common practices
  within the auction industry.
         SECTION 7.  Sections 1802.102(a) and (b), Occupations Code,
  are amended to read as follows:
         (a)  The advisory board consists of seven [six] members
  appointed as follows:
               (1)  four [three] members who are licensed auctioneers
  appointed by the executive director [presiding officer of the
  commission], with the commission's approval;
               (2)  the administrative head, or the administrative
  head's designee, of any state agency or office that is selected by
  the executive director [of the Texas Economic Development and
  Tourism Office or the director's designee]; and
               (3)  two public members.
         (b)  In appointing advisory board members under Subsection
  (a)(1), the executive director shall consider the geographical
  diversity of the members [presiding officer of the commission may
  not appoint members who reside in contiguous senatorial districts].
         SECTION 8.  Section 1802.103(a), Occupations Code, is
  amended to read as follows:
         (a)  The members appointed under Section 1802.102(a)(1)
  serve two-year terms that expire on September 1 and may not serve
  more than two consecutive terms. If a vacancy occurs during the
  term of such a member, the executive director [presiding officer of
  the commission], with the commission's approval, shall appoint a
  replacement to serve for the remainder of the term.
         SECTION 9.  Section 1802.104, Occupations Code, is amended
  to read as follows:
         Sec. 1802.104.  PRESIDING OFFICER. The executive director
  [presiding officer of the commission], with the commission's
  approval, shall appoint a member of the advisory board to serve as
  presiding officer of the board. The presiding officer serves for
  two years and may not serve more than two consecutive terms.
         SECTION 10.  Section 1802.107(b), Occupations Code, is
  amended to read as follows:
         (b)  The advisory board may meet at other times at the call of
  the presiding officer of the advisory board or the executive
  director.
         SECTION 11.  Section 1802.153(b), Occupations Code, is
  amended to read as follows:
         (b)  If the balance in the fund on December 31 of a year is
  less than $350,000 [$300,000], each license holder at the next
  license renewal shall pay, in addition to the renewal fee, a fee
  that is equal to the greater of $50 or a pro rata share of the amount
  necessary to obtain a balance in the fund of $350,000 [$300,000].
         SECTION 12.  Section 1802.156, Occupations Code, is amended
  to read as follows:
         Sec. 1802.156.  EDUCATION EXPENDITURES PERMITTED. The
  executive director may use amounts in excess of $300,000 [$250,000]
  in the fund to:
               (1)  advance education and research in the
  auctioneering profession for the benefit of license holders and to
  improve and increase the efficiency of the industry;
               (2)  underwrite educational seminars, training
  centers, and other educational projects for the use and benefit of
  license holders;
               (3)  sponsor, contract, and underwrite other
  educational and research projects that advance the auctioneering
  profession in this state; and
               (4)  cooperate with associations of auctioneers and
  other groups for the education and advancement of the auctioneering
  profession in this state.
         SECTION 13.  Section 1802.206, Occupations Code, is amended
  to read as follows:
         Sec. 1802.206.  PAYMENT LIMITS. (a) The executive director
  may not pay a single aggrieved party more than $15,000 [$10,000].
         (b)  The total payment of all claims by more than one
  aggrieved party arising from one auction at one location,
  regardless of the length of the auction, may not exceed $30,000
  [$20,000].
         (c)  The total payment of claims against a single auctioneer
  may not exceed $30,000 [$20,000].
         SECTION 14.  Section 1802.209(a), Occupations Code, is
  amended to read as follows:
         (a)  This subchapter and Section 1802.252 do not limit the
  commission's or executive director's authority to take disciplinary
  action against a license holder for a violation of this chapter or a
  rule adopted under this chapter.
         SECTION 15.  Section 1802.251, Occupations Code, is amended
  to read as follows:
         Sec. 1802.251.  DENIAL OF APPLICATION; SUSPENSION OR
  REVOCATION OF LICENSE. The commission or executive director may
  deny an application for a license or suspend or revoke the license
  of any auctioneer for:
               (1)  violating this chapter or a rule adopted under
  this chapter;
               (2)  obtaining a license through false or fraudulent
  representation;
               (3)  making a substantial misrepresentation in an
  application for an auctioneer's license;
               (4)  engaging in a continued and flagrant course of
  misrepresentation or making false promises through an agent,
  advertising, or otherwise;
               (5)  failing to account for or remit, within a
  reasonable time, money belonging to another that is in the
  auctioneer's possession and commingling funds of another with the
  auctioneer's funds or failing to keep the funds of another in an
  escrow or trust account; or
               (6)  violating a provision of the Business & Commerce
  Code in conducting an auction.
         SECTION 16.  Section 1802.253(a), Occupations Code, is
  amended to read as follows:
         (a)  Before denying an application for a license, the
  commission or executive director shall:
               (1)  set the matter for a hearing to be conducted by the
  State Office of Administrative Hearings; and
               (2)  before the hearing date, notify the applicant in
  writing of:
                     (A)  the charges alleged or the question to be
  determined at the hearing; and
                     (B)  the date and location of the hearing.
         SECTION 17.  Section 1802.303(a), Occupations Code, is
  amended to read as follows:
         (a)  An individual [A person] commits an offense if the
  individual [person] violates a provision of this chapter or a rule
  adopted by the commission under this chapter for which a penalty is
  not provided.
         SECTION 18.  Sections 1802.001(2), 1802.053, 1802.062,
  1802.105, and 1802.253(d), Occupations Code, are repealed.
         SECTION 19.  (a) The executive director of the Texas
  Department of Licensing and Regulation shall appoint an additional
  member to the auctioneer education advisory board as required by
  Section 1802.102, Occupations Code, as amended by this Act, not
  later than September 1, 2013, for a term expiring September 1, 2015.
         (b)  Section 1802.103, Occupations Code, as amended by this
  Act, applies only to the appointment of a member of the auctioneer
  education advisory board on or after the effective date of this Act
  and does not affect the entitlement of a member serving on the board
  immediately before the effective date of this Act to continue to
  serve for the remainder of the member's term.
         SECTION 20.  Section 1802.206, Occupations Code, as amended
  by this Act, applies only to a claim filed under Section 1802.202,
  Occupations Code, on or after the effective date of this Act. A
  claim filed before that date is governed by the law in effect on the
  date the claim was filed, and the former law is continued in effect
  for that purpose.
         SECTION 21.  Section 1802.303, Occupations Code, as amended
  by this Act, applies only to an offense committed on or after the
  effective date of this Act. An offense committed before the
  effective date of this Act is governed by the law in effect on the
  date the offense was committed, and the former law is continued in
  effect for that purpose. For purposes of this section, an offense
  was committed before the effective date of this Act if any element
  of the offense occurred before that date.
         SECTION 22.  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, 2013.