79R7916 YDB-D

By:  Brown of Brazos                                              H.B. No. 2152



A BILL TO BE ENTITLED

AN ACT

relating to 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 
by amending Subdivisions (2), (3), and (5) and adding Subdivision 
(4-a) to read as follows:
		(2)  "Associate auctioneer" means an individual who, 
for compensation, is employed by and under the direct supervision 
of an [a licensed] auctioneer licensed under this chapter to sell or 
offer to sell property at an auction.
		(3)  "Auction" means the sale of property through means 
of exchanges between an auctioneer and members of an audience 
consisting of a series of invitations for offers made by the 
auctioneer, offers by audience members, and the acceptance by the 
auctioneer of the highest or most favorable offer.  The use of 
written bids, media technology, or mailings as part of a promotion, 
bidding, or acceptance or any other part of a transaction does not 
exclude the transaction from being classified as an auction [by 
competitive bid].
		(4-a)  "Auction company operator" means a person who is 
not an owner of an auction company but who has a vested financial 
interest in the auction company.
		(5)  "Auctioneer" means any person [an individual] who 
conducts [sells] or offers to conduct an [sell property at] auction 
[, with or without receiving valuable consideration, as a bid 
caller].
	SECTION 2.  Section 1802.002, Occupations Code, is amended 
to read as follows:
	Sec. 1802.002.  APPLICABILITY.  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 or nonprofit 
organization , if the auctioneer receives no compensation;
		[(4)]  a sale conducted by an individual of the 
individual's property if the individual is not engaged in the 
business of selling property as an auctioneer on a recurring basis;
		(4) [(5)]  a foreclosure sale of real property 
personally conducted by a trustee under a deed of trust;
		(5) [(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;
		(6) [(7)]  a sale conducted by sealed bid;            
		(7) [(8)]  an auction conducted only for student 
training purposes as part of a course of study approved by the 
department [executive director for auctioneers];
		(8) [(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;
		(9) [(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
		(10) [(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 or owned or donated by the organization's members 
or supporters; or
			(C)  is performed on a nonrecurring basis.                            
	SECTION 3.  Subchapter B, Chapter 1802, Occupations Code, is 
amended by adding Section 1802.0515 to read as follows:
	Sec. 1802.0515.  AUCTION COMPANIES; REQUIREMENTS.  (a) An 
auction company may not arrange, manage, sponsor, advertise, 
conduct, or offer to conduct auctions held in this state unless the 
auction company is owned or operated by an auctioneer licensed 
under this chapter.
	(b)  An auction company that advertises to conduct an auction 
in this state shall provide in the advertisement the name and 
license number of the auctioneer who owns the company, operates the 
company, or is conducting the auction.
	SECTION 4.  This Act takes effect September 1, 2005.