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A BILL TO BE ENTITLED
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AN ACT
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relating to the regulation of certain motor vehicle auctions. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 1802.002(a), Occupations Code, is |
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amended to read as follows: |
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(a) This chapter does not apply to: |
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(1) a sale conducted by order of a United States court |
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under Title 11, United States Code; |
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(2) a sale conducted by an employee of the United |
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States, this state, or a political subdivision of this state in the |
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course and scope of employment; |
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(3) a sale conducted by a charitable, religious, or |
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civic organization, including an organization having a tax exempt |
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status under Section 501(c), Internal Revenue Code of 1986, or |
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organized as a nonprofit entity, if the person organizing, |
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arranging, or conducting the auction receives no compensation; |
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(4) a sale conducted by any person of the person's |
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property if the person is not engaged in the business of selling |
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property at auction on a recurring basis; |
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(5) a foreclosure sale of real property personally |
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conducted by a trustee under a deed of trust; |
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(6) a foreclosure sale of personal property personally |
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conducted by: |
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(A) a person who holds a security interest in the |
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property, including a mortgage; or |
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(B) an employee or agent of a person described by |
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Paragraph (A) acting in the course and scope of employment, if: |
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(i) the employee or agent is not otherwise |
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engaged in the auction business; and |
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(ii) all property for sale in the auction is |
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subject to a security agreement; |
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(7) a sale conducted by sealed bid without the option |
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of increasing or decreasing the amount of a bid; |
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(8) an auction conducted only for student training |
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purposes as part of a course of study approved by the department; |
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(9) an auction conducted by a posted stockyard or |
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market agency as defined by the federal Packers and Stockyards Act |
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(7 U.S.C. Section 181 et seq.), as amended; |
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(10) an auction of livestock conducted by a nonprofit |
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livestock trade association chartered in this state, if the auction |
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involves only the sale of livestock owned by members of the trade |
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association; |
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(11) an auction conducted by a charitable or nonprofit |
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organization chartered in this state, if the auction: |
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(A) is part of a fair that is organized under |
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state, county, or municipal authority; and |
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(B) involves only the sale of property owned by |
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the organization's members; [or] |
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(12) a sale or auction conducted outside of this |
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state; |
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(13) a sale of motor vehicles at auction by a person |
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licensed under Chapter 2301 or 2302; or |
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(14) a sale of motor vehicles at auction by a person |
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who holds a wholesale motor vehicle auction general distinguishing |
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number or an independent motor vehicle general distinguishing |
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number issued by the Texas Department of Motor Vehicles. |
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SECTION 2. Section 1802.051, Occupations Code, is amended |
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by amending Subsection (c) and adding Subsection (d) to read as |
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follows: |
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(c) Except as provided by Subsection (d), an [An] individual |
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who is licensed under this chapter may not act as an auctioneer for |
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an entity unless the entity: |
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(1) is an auction company owned or operated by an |
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individual who is licensed under this chapter; or |
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(2) [holds a dealer general distinguishing number
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issued under Subchapter B, Chapter 503, Transportation Code, and
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the auction is for the purpose of auctioning vehicles as defined by
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Section 503.001, Transportation Code; or
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[(3)] is a real estate brokerage firm that is operated |
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by a broker licensed by the Texas Real Estate Commission. |
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(d) An auctioneer who is licensed under this chapter may |
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conduct an auction to sell motor vehicles, as defined by Section |
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501.002 or 502.001, Transportation Code, if the auctioneer conducts |
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the auction for a person who holds a dealer general distinguishing |
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number or wholesale motor vehicle auction general distinguishing |
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number issued under Subchapter B, Chapter 503, Transportation Code, |
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or a license issued under Subchapter C, Chapter 2302, of this code. |
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SECTION 3. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2015. |