Texas Auctioneer Licensing Laws

Vernon's Texas Statutes and Codes Annotated
Occupations Code (Refs & Annos)
Title 11. Regulation of Sales and Solicitation
Chapter 1802. Auctioneers
Subchapter A. General Provisions

§ 1802.001. Definitions
Currentness
In this chapter:
(1) “Advisory board” means the Auctioneer Advisory Board.
(2) “Associate auctioneer” means an individual who, for compensation, is employed by and under the direct supervision of a licensed auctioneer to sell or offer to sell property at an auction.
(3) “Auction” means the sale of property by competitive bid using any method, format, or venue.
(4) “Auction company” means a person who engages in the business of arranging, managing, sponsoring, advertising, or conducting auctions.
(5) “Auctioneer” means any individual who sells or offers to sell property of another person by live bid at auction, with or without receiving consideration .
(6) “Commission” means the Texas Commission of Licensing and Regulation.
(7) Repealed by Acts 2003, 78th Leg., ch. 816, § 4.019(1); Acts 2003, 78th Leg., ch. 1276, § 14A.351(a).
(8) “Department” means the Texas Department of Licensing and Regulation.
(8-a) “Executive director” means the executive director of the department.
(9) “Fund” means the auctioneer education and recovery fund.
(10) “Personal property” means any property other than real 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(12) Repealed by Acts 2015, 84th Leg., ch. 777 (H.B. 2481), § 15.
(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.
Credits
Acts 1999, 76th Leg., ch. 388, § 1, eff. Sept. 1, 1999. Amended by Acts 2003, 78th Leg., ch. 816, §§ 4.001, 4.019(1), eff. Sept. 1, 2003; Acts 2003, 78th Leg., ch. 1276, §§ 14.010, 14A.351, eff. Sept. 1, 2003; Acts 2013, 83rd Leg., ch. 1048 (H.B. 3038), §§ 1, 17, eff. June 14, 2013; Acts 2015, 84th Leg., ch. 777 (H.B. 2481), §§ 1, 15, eff. Sept. 1, 2015.

§ 1802.002. Applicability
Currentness
(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 foreclosure sale of real property personally conducted by a trustee under a deed of trust;
(5) 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) a sale conducted by sealed bid without the option of increasing or decreasing the amount of a bid;
(7) an auction conducted only for student training purposes as part of a course of study approved by the department;
(8) 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) 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;
(10) 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;
(11) a sale or auction conducted by an auctioneer while the auctioneer is physically located outside of this state;
(12) a sale of motor vehicles at auction by a person licensed under Chapter 2301 or 2302;

(13) a sale of motor vehicles at auction by a person who holds a wholesale motor vehicle auction general distinguishing number or an independent motor vehicle general distinguishing number issued by the Texas Department of Motor Vehicles; or

(13) a sale of motor vehicles at auction by a person licensed under Chapter 2301 or 2302; or

(14) an auction of property through the Internet.

(14) a sale of motor vehicles at auction by a person who holds a wholesale motor vehicle auction general distinguishing number or an independent motor vehicle general distinguishing number issued by the Texas Department of Motor Vehicles.
(b) This chapter applies to a sealed bid auction.
Credits
Acts 1999, 76th Leg., ch. 388, § 1, eff. Sept. 1, 1999. Amended by Acts 2003, 78th Leg., ch. 816, § 26.044, eff. Sept. 1, 2003; Acts 2003, 78th Leg., ch. 1276, § 14A.352, eff. Sept. 1, 2003; Acts 2007, 80th Leg., ch. 201, § 1, eff. May 24, 2007; Acts 2013, 83rd Leg., ch. 1048 (H.B. 3038), § 2, eff. June 14, 2013; Acts 2015, 84th Leg., ch. 777 (H.B. 2481), § 2, eff. Sept. 1, 2015; Acts 2015, 84th Leg., ch. 1230 (S.B. 1982), § 1, eff. June 19, 2015.

§ 1802.004. Advertisement of Auction
Currentness
The commission, by rule, may adopt standards for the advertisement of an auction by an auctioneer or associate auctioneer licensed under this chapter.
Credits
Added by Acts 2015, 84th Leg., ch. 777 (H.B. 2481), § 3, eff. Sept. 1, 2015.


Vernon's Texas Statutes and Codes Annotated
Occupations Code (Refs & Annos)
Title 11. Regulation of Sales and Solicitation
Chapter 1802. Auctioneers
Subchapter B. License Requirements

§ 1802.051. License Required
Currentness
(a) A person may not act as an auctioneer or associate auctioneer in this state unless the person holds a license issued by the executive director under this chapter.
(b) Repealed by Acts 2015, 84th Leg., ch. 777 (H.B. 2481), § 15.
(c) Except as provided by Subsection (d), an individual 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 who is licensed under this chapter; or
(2) is a real estate brokerage firm that is operated by a broker licensed by the Texas Real Estate Commission.

(d) An individual who is licensed under this chapter may conduct an auction to sell motor vehicles, as defined by Section 501.002 or 502.001, Transportation Code, for a person who holds:
(1) a dealer general distinguishing number or a wholesale motor vehicle auction general distinguishing number issued under Subchapter B, Chapter 503, Transportation Code;1 or
(2) a license issued under Subchapter C, Chapter 2302.2

(d) An individual who is licensed under this chapter may conduct an auction to sell motor vehicles, as defined by Section 501.002 or 502.001, Transportation Code, if the individual conducts the auction for a person who holds a dealer general distinguishing number or wholesale motor vehicle auction general distinguishing number issued under Subchapter B, Chapter 503, Transportation Code, or a license issued under Subchapter C, Chapter 2302, of this code.
Credits
Acts 1999, 76th Leg., ch. 388, § 1, eff. Sept. 1, 1999. Amended by Acts 2003, 78th Leg., ch. 816, § 26.045, eff. Sept. 1, 2003; Acts 2003, 78th Leg., ch. 1276, § 14A.353, eff. Sept. 1, 2003; Acts 2011, 82nd Leg., ch. 325 (H.B. 2519), § 1, eff. Sept. 1, 2011; Acts 2013, 83rd Leg., ch. 1048 (H.B. 3038), § 3, eff. June 14, 2013; Acts 2015, 84th Leg., ch. 777 (H.B. 2481), §§ 4, 15, eff. Sept. 1, 2015; Acts 2015, 84th Leg., ch. 1230 (S.B. 1982), § 2, eff. June 19, 2015.

§ 1802.052. Eligibility for Auctioneer's License
Currentness
(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 and participation in at least 10 auctions during that employment;
(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.
(b) The department, as provided by rule, may charge an auction school a reasonable fee for approving the curriculum as required under Subsection (a)(6).
Credits
Acts 1999, 76th Leg., ch. 388, § 1, eff. Sept. 1, 1999. Amended by Acts 2003, 78th Leg., ch. 395, § 1, eff. Sept. 1, 2003; Acts 2013, 83rd Leg., ch. 1048 (H.B. 3038), § 4, eff. June 14, 2013; Acts 2015, 84th Leg., ch. 777 (H.B. 2481), § 5, eff. Sept. 1, 2015.

§ 1802.053. Eligibility for Associate Auctioneer License
Currentness
An individual is eligible for an associate auctioneer license if the individual is:
(1) a citizen of the United States or a legal alien; and
(2) employed under the direct supervision of an auctioneer licensed under this chapter.
Credits
Added by Acts 2015, 84th Leg., ch. 777 (H.B. 2481), § 6, eff. Sept. 1, 2015.

§ 1802.054. Application for License
Currentness
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;
(2) the required application 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;1 or
(B) proof of exemption from the tax permit requirement under Chapter 151, Tax Code.
Credits
Acts 1999, 76th Leg., ch. 388, § 1, eff. Sept. 1, 1999. Amended by Acts 2003, 78th Leg., ch. 816, § 26.046, eff. Sept. 1, 2003; Acts 2003, 78th Leg., ch. 1276, § 14A.354, eff. Sept. 1, 2003; Acts 2013, 83rd Leg., ch. 1048 (H.B. 3038), § 5, eff. June 14, 2013; Acts 2015, 84th Leg., ch. 777 (H.B. 2481), § 7, eff. Sept. 1, 2015.


§ 1802.055. Application for Examination
Currentness
An individual who establishes that the individual is eligible for an auctioneer's license may apply to the executive director to take the license examination. The application must be accompanied by the application fee.
Credits
Acts 1999, 76th Leg., ch. 388, § 1, eff. Sept. 1, 1999. Amended by Acts 2003, 78th Leg., ch. 816, § 26.047, eff. Sept. 1, 2003; Acts 2003, 78th Leg., ch. 1276, § 14A.355, eff. Sept. 1, 2003; Acts 2015, 84th Leg., ch. 777 (H.B. 2481), § 8, eff. Sept. 1, 2015.


§ 1802.059. Licensing by Reciprocity
Currentness
(a) An applicant for an auctioneer's license who is not a resident of this state but is licensed as an auctioneer in another state must submit to the executive director:
(1) a license application;
(2) a certified copy of the auctioneer's license issued to the applicant by the state or political subdivision in which the applicant resides; and
(3) proof that the state or political subdivision in which the applicant is licensed has competency standards equivalent to or stricter than those of this state.
(b) The executive director shall accept the applicant's auctioneer's license submitted under Subsection (a)(2) as proof of the applicant's professional competence and waive the examination or employment and training requirements of Section 1802.052 if the state or political subdivision that issued the nonresident a license extends similar recognition and courtesies to this state.
(c) A nonresident applicant must comply with all other application requirements prescribed by this chapter.
(d) A nonresident applicant must submit with the application a written irrevocable consent to service of process. The consent must be in the form and supported by additional information that the commission by rule requires. The consent must:
(1) provide that an action relating to any transaction subject to this chapter may be commenced against the license holder in the proper court of any county of this state in which the cause of action may arise or in which the plaintiff may reside by service of process on the executive director as the license holder's agent; and
(2) include a statement stipulating and agreeing that service provided by this section is as valid and binding as if service had been made on the person according to the laws of this or any other state.
Credits
Acts 1999, 76th Leg., ch. 388, § 1, eff. Sept. 1, 1999. Amended by Acts 2003, 78th Leg., ch. 816, § 4.002, eff. Sept. 1, 2003; Acts 2015, 84th Leg., ch. 777 (H.B. 2481), § 9, eff. Sept. 1, 2015.

Vernon's Texas Statutes and Codes Annotated
Occupations Code (Refs & Annos)
Title 11. Regulation of Sales and Solicitation
Chapter 1802. Auctioneers
Subchapter C. Auctioneer Advisory Board

§ 1802.101. Auctioneer Advisory Board
Currentness
The advisory board shall advise the commission on educational matters, operational matters, and common practices within the auction industry.
Credits
Acts 1999, 76th Leg., ch. 388, § 1, eff. Sept. 1, 1999. Amended by Acts 2003, 78th Leg., ch. 816, § 4.003, eff. Sept. 1, 2003; Acts 2003, 78th Leg., ch. 1276, § 14A.359, eff. Sept. 1, 2003; Acts 2013, 83rd Leg., ch. 1048 (H.B. 3038), § 6, eff. June 14, 2013; Acts 2015, 84th Leg., ch. 777 (H.B. 2481), § 11, eff. Sept. 1, 2015.

§ 1802.106. Compensation
Currentness
A member appointed under Section 1802.102(a)(1) may not receive compensation for serving on the advisory board .
Credits
Acts 1999, 76th Leg., ch. 388, § 1, eff. Sept. 1, 1999. Amended by Acts 2015, 84th Leg., ch. 777 (H.B. 2481), § 12, eff. Sept. 1, 2015.

§ 1802.107. Meetings
Currentness
The advisory board shall meet at the call of the presiding officer of the commission or the executive director.
Credits
Acts 1999, 76th Leg., ch. 388, § 1, eff. Sept. 1, 1999. Amended by Acts 2013, 83rd Leg., ch. 1048 (H.B. 3038), § 10, eff. June 14, 2013; Acts 2015, 84th Leg., ch. 777 (H.B. 2481), § 13, eff. Sept. 1, 2015.