C.S.H.B. 135 78(R)    BILL ANALYSIS


C.S.H.B. 135
By: Brown, Fred
Licensing & Administrative Procedures
Committee Report (Substituted)

BACKGROUND AND PURPOSE 
In 1991 legislation was passed to create the Auctioneer Education and
Recovery Trust Fund.  Prior to passage of this legislation there was a
minimal history of losses though bonding companies with minimal fines. 

Since 1991 the Fund has paid out in excess of $267,252.00 to consumers
resulting in claims brought against auctioneers.  (A maximum of up to
$20,000 per claim) 

The Texas Department of Licensing and Regulation (TDLR) have collected
over $160,000 in fines and penalties from auctioneers for failing to
adhere to the auction law.   These fines and penalties are for but not
limited to failure to have their license numbers in newspaper ads; yellow
page ads; posting /and or announcing the required notices at the time of
their auctions; failure to hold a license and /or working for a
non-licensed auctioneer; and failure to pay consignors in a timely manner
(if at all).    

It is for these reasons that there is a need for pre education.  It is not
enough for auctioneers to know the Texas Auctioneer License Act and the
Texas Department of Licensing and Regulation's Rules regarding
Auctioneers, they also need to be aware that there are additional State
and Federal laws that apply to the Texas auction industry. 

CSHB 135 seeks to codify a rule of conduct and bring some uniformity and
consistency to the  auctioneer profession. 


RULEMAKING AUTHORITY
It is the committee's opinion that additional rulemaking authority is
granted to the executive director of the Texas Department of Licensing and
Regulation in SECTION 1 (Sec. 1802.052, Occupations Code) of this bill. 

ANALYSIS
Amends Section 1802.052, Occupations Code by setting new parameters for
being eligible for an auctioneer's license. Subsection (B) doubles the
proof of employment under a licensed auctioneer from one to two years and
also the applicant must have participated in ten auctions instead of five
under current law. The subsection also adds qualifications that an
applicant must have a high school diploma or equivalent; not have a felony
conviction during the five years preceding the date of application; and
have completed 80 hours of approved curriculum at an auction school. The
substitute also authorizes the Department of Licensing and Regulation to
charge a reasonable fee to an auction school for approving the curriculum.

Amends Subchapter B, Section 1802, Occupations Code, by adding Section
1802.062 which states that a license is not required for an employee who
does not act as a bid caller 

Requires the executive director of the Texas Department of Licensing and
Regulation to adopt rules as required by Section 1802.052, Occupations
Code.  

Provides that an auctioneer who applies for a license on or before January
1, 2004 is not required to complete the 80 hours of classroom instruction. 

EFFECTIVE DATE
September 1, 2003. The Act applies beginning with an application for an
auctioneer's license that is filed on or after the effective date of this
Act. An application filed before the effective date of this  Act is
governed  by the law in effect on the date the application was filed, and
the former law is continued for that purpose.  


COMPARISON OF ORIGINAL TO SUBSTITUTE
CSHB 135 requires an applicant to have not been convicted by a felony
during the five years preceding the date of application.  The original
version stated that an applicant could not have been convicted of a felony
involving moral turpitude during the five year period.  CSHB 135 also adds
language allowing TDLR to charge an auction school a reasonable fee for
approving the curriculum.   
CSHB 135 also adds new language that specifically states that an employee
of an auction company who does not act as a bid caller at any auction in
this state is not required to hold a license under this chapter. Language
was also added at the request of the Texas Department of Licensing and
Regulation in order to ensure they have the flexibility needed to properly
enforce the provisions outlined by CSHB 135 and provides that an
auctioneer who applies for a license on or before January 1, 2004 is not
required to complete the 80 hours of classroom instruction.