Auctioneer Licensing Laws

Texas Statutes
Occupations Code
Title 11. Regulation Of Sales And Solicitation
Chapter 1802. Auctioneers
Subchapter A. General Provisions
Current through the 2013 Regular and Special Sessions
§ 1802.001. Definitions

Note: Amended

§ 1802.002. Applicability


Note: Amended

§ 1802.003. Preemption

A political subdivision of this state may not levy on or collect from an auctioneer a license tax or fee as a regulatory or revenue measure or require the licensing of an auctioneer, if the auctioneer holds a license under this chapter and is in compliance with this chapter.

Cite as Tex. Occ. Code § 1802.003

History. Amended by Acts 2013, 83rd Leg. - Regular Session, ch. 1048, Sec. 2, eff. 6/14/2013.

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

Texas Statutes
Occupations Code
Title 11. Regulation Of Sales And Solicitation
Chapter 1802. Auctioneers
Subchapter B. License Requirements
Current through the 2013 Regular and Special Sessions
§ 1802.051. License Required

Note: Amended

§ 1802.052. Eligibility For Auctioneer's License

Note: Amended

§ 1802.053. [Repealed]


Note: Amended


§ 1802.054. Application For License

Note: Amended


§ 1802.055. Application For Examination

Note: Amended


§ 1802.056. License Examination

(a)     The license examination must be designed to establish:
(1)     an applicant's general knowledge of the auction business;
(2)     the principles of conducting an auction; and
(3)     the laws of this state relating to auctioneers.
(b)     The license examination shall be offered at least four times each year at locations designated by the executive director.
(c)     The executive director shall prepare:
(1)     examinations for an auctioneer's license; and
(2)     study and reference materials on which the examinations are based.
Cite as Tex. Occ. Code § 1802.056

History. Amended by Acts 2003, 78th Leg., ch. 816, Sec. 26.048, eff. Sept. 1, 2003

Amended By Acts 2003, 78th Leg., ch. 1276, Sec. 14A.356, eff. Sept. 1, 2003.

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

§ 1802.058. Reexamination

An applicant who fails the license examination may reapply to take the examination. If the applicant fails the examination twice during a one-year period, the applicant may not reapply for one year.

Cite as Tex. Occ. Code § 1802.058

History. Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

§ 1802.059. Licensing By Reciprocity

Note: Amended


§ 1802.060. Term Of License

A license issued under this chapter shall be issued for the period prescribed by the commission.

Cite as Tex. Occ. Code § 1802.060

History. Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

§ 1802.062. [Repealed]


History. Repealed by Acts 2013, 83rd Leg. - Regular Session, ch. 1048, Sec. 17, eff. 6/14/2013.

Texas Statutes
Occupations Code
Title 11. Regulation Of Sales And Solicitation
Chapter 1802. Auctioneers
Subchapter C. Auctioneer Education Advisory Board
Current through the 2013 Regular and Special Sessions
§ 1802.101. Auctioneer Education Advisory Board

Note: Amended


§ 1802.102. Appointment Of Advisory Board; Membership; Eligibility

(a)     The advisory board consists of seven members appointed as follows:
(1)    four members who are licensed auctioneers appointed by the 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 commission; and
(3)     two public members.
(b)     In appointing advisory board members under Subsection (a)(1), the presiding officer of the commission shall consider the geographical diversity of the members.
(c)     Appointments to the advisory board shall be made without regard to the race, color, handicap, sex, religion, age, or national origin of the appointees.
Cite as Tex. Occ. Code § 1802.102

History. Amended by Acts 2013, 83rd Leg. - Regular Session, ch. 1048, Sec. 7, eff. 6/14/2013.

Amended By Acts 2011, 82nd Leg., R.S., Ch. 1176, Sec. 10, eff. June 17, 2011.

Amended By Acts 2009, 81st Leg., R.S., Ch. 457, Sec. 5, eff. September 1, 2009.

Amended by Acts 2003, 78th Leg., ch. 816, Sec. 4.004, eff. Sept. 1, 2003.

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

§ 1802.103. Terms; Vacancies

(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 presiding officer of the commission, with the commission's approval, shall appoint a replacement to serve for the remainder of the term.
(b)     The remaining members are ex officio members. Each ex officio member shall continue to serve during the time the member holds office.
Cite as Tex. Occ. Code § 1802.103

History. Amended by Acts 2013, 83rd Leg. - Regular Session, ch. 1048, Sec. 8, eff. 6/14/2013.

Amended by Acts 2003, 78th Leg., ch. 816, Sec. 4.005, eff. Sept. 1, 2003.

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

§ 1802.104. Presiding Officer

The 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.

Cite as Tex. Occ. Code § 1802.104

History. Amended by Acts 2013, 83rd Leg. - Regular Session, ch. 1048, Sec. 9, eff. 6/14/2013.

Amended by Acts 2003, 78th Leg., ch. 816, Sec. 4.006, eff. Sept. 1, 2003.

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

§ 1802.105. [Repealed]


History. Repealed by Acts 2013, 83rd Leg. - Regular Session, ch. 1048, Sec. 17, eff. 6/14/2013.

§ 1802.106. Compensation

Note: Amended

§ 1802.107. Meetings

Note: Amended


§ 1802.109. Auctioneer Education Programs

(a)     The advisory board shall:
(1)     evaluate educational programs, seminars, and training projects; and
(2)     make recommendations to the commission on their usefulness and merit as continuing education tools.
(b)     On the recommendation of the advisory board, the commission may fund or underwrite specific classes, seminars, or events for the education and advancement of the auctioneering profession in this state.
Cite as Tex. Occ. Code § 1802.109

History. Amended by Acts 2003, 78th Leg., ch. 816, Sec. 4.007, eff. Sept. 1, 2003.

Texas Statutes
Occupations Code
Title 11. Regulation Of Sales And Solicitation
Chapter 1802. Auctioneers
Subchapter D. Auctioneer Education And Recovery Fund
Current through the 2013 Regular and Special Sessions
§ 1802.151. Fund

The auctioneer education and recovery fund is a trust fund with the comptroller for the payment of claims against auctioneers licensed under this chapter.

Cite as Tex. Occ. Code § 1802.151

History. Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

§ 1802.152. Management Of Fund

(a)     The department is the manager of the fund and shall:
(1)     administer the fund without appropriation;
(2)     maintain books and records as required by the executive director;
(3)     appear at hearings or judicial proceedings; and
(4)     invest and reinvest the fund's assets as instructed by the executive director.
(b)     The department, as manager, is entitled to compensation for reasonable and necessary costs and expenses for the management of the fund. The department shall be compensated from the earnings from the fund.
Cite as Tex. Occ. Code § 1802.152

History. Amended by Acts 2003, 78th Leg., ch. 816, Sec. 26.049, eff. Sept. 1, 2003

Amended By Acts 2003, 78th Leg., ch. 1276, Sec. 14A.363, eff. Sept. 1, 2003.

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

§ 1802.153. Additional Fees

(a)     In addition to any other fees required by this chapter, an applicant entitled to receive a license under this chapter must pay a fee before the executive director issues the license.
(b)     If the balance in the fund on December 31 of a year is less than $350,000, 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.
(c)     The fees paid under this section shall be deposited in the fund.
Cite as Tex. Occ. Code § 1802.153

History. Amended by Acts 2013, 83rd Leg. - Regular Session, ch. 1048, Sec. 11, eff. 6/14/2013.

Amended by Acts 2003, 78th Leg., ch. 816, Sec. 4.008, eff. Sept. 1, 2003

Amended By Acts 2003, 78th Leg., ch. 1276, Sec. 14A.364, eff. Sept. 1, 2003.

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

§ 1802.154. Investment Of Fund

(a)     Amounts deposited in the fund may be invested and reinvested in the same manner as funds of the Employees Retirement System of Texas, and income from the investments shall be deposited to the credit of the fund.
(b)     The department may not make an investment that would impair the liquidity required to satisfy payments made from the fund.
Cite as Tex. Occ. Code § 1802.154

History. Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

§ 1802.155. Liability

(a)     The fund or the department is not liable to a consumer for a recovery from the fund if the assets of the fund are insufficient to pay the amount awarded.
(b)     If the fund contains insufficient assets to pay the consumer:
(1)     the department shall record the time and date an order for payment to a consumer was received; and
(2)     the executive director shall pay consumers for whom an order is recorded under Subdivision (1) as funds become available in the order of the recorded time and date of the order.
Cite as Tex. Occ. Code § 1802.155

History. Amended by Acts 2003, 78th Leg., ch. 816, Sec. 26.050, eff. Sept. 1, 2003

Amended By Acts 2003, 78th Leg., ch. 1276, Sec. 14A.365, eff. Sept. 1, 2003.

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

§ 1802.156. Education Expenditures Permitted

The executive director may use amounts in excess of $300,000 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.
Cite as Tex. Occ. Code § 1802.156

History. Amended by Acts 2013, 83rd Leg. - Regular Session, ch. 1048, Sec. 12, eff. 6/14/2013.

Amended by Acts 2003, 78th Leg., ch. 816, Sec. 26.051, eff. Sept. 1, 2003

Amended By Acts 2003, 78th Leg., ch. 1276, Sec. 14A.366, eff. Sept. 1, 2003.

Texas Statutes
Occupations Code
Title 11. Regulation Of Sales And Solicitation
Chapter 1802. Auctioneers
Subchapter E. Complaint Procedures
Current through the 2013 Regular and Special Sessions
§ 1802.201. Investigation Of Complaints

The executive director may, on the executive director's motion, and shall, on the written complaint of a person aggrieved by the actions of an auctioneer in an auction, investigate an alleged violation of this chapter by a licensed or unlicensed auctioneer or an applicant.

Cite as Tex. Occ. Code § 1802.201

History. Amended by Acts 2003, 78th Leg., ch. 816, Sec. 4.009, eff. Sept. 1, 2003

Amended By Acts 2003, 78th Leg., ch. 1276, Sec. 14A.366, eff. Sept. 1, 2003.

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

§ 1802.202. Consumer Claims

(a)     A person who deals with an auctioneer licensed under this chapter and who is aggrieved by an action of the auctioneer as a result of a violation of a contract made with the auctioneer may initiate a claim against the fund by filing with the department a complaint against the auctioneer.
(b)     The executive director may not pay a claim against an auctioneer who was not licensed at the time of the transaction on which the claim is based.
(c)     The department shall investigate a complaint filed under this section and determine the amount owed to the aggrieved party.
Cite as Tex. Occ. Code § 1802.202

History. 2003, 78th Leg., ch. 1276, Sec. 14A.367, eff. Sept. 1, 2003. .

Amended by Acts 2003, 78th Leg., ch. 816, Sec. 4.010, eff. Sept. 1, 2003

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

§ 1802.203. [First of Two Versions] Hearing

(a)     If the amount determined by the department under Section 1802.202 is disputed by the auctioneer or the aggrieved party, the department's hearings examiner shall:
(1)     conduct a hearing on the claim in accordance with department rules; and
(2)     determine the amount owed to the aggrieved party.
(b)     A hearing on a claim may be conducted at the department's Austin office or at another location as provided by department rule.
(c)     After the hearing, the hearings examiner shall prepare a proposal for decision for the commission.
Cite as Tex. Occ. Code § 1802.203

History. Amended by Acts 2003, 78th Leg., ch. 816, Sec. 4.011, eff. Sept. 1, 2003.

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

§ 1802.203. [Second of Two Versions] Hearing

If the amount determined by the department under Section 1802.202 is disputed by the auctioneer or the aggrieved party, the department shall refer the matter to the State Office of Administrative Hearings for a hearing on the disputed claim.

Cite as Tex. Occ. Code § 1802.203

History. Amended by Acts 2003, 78th Leg., ch. 1215, Sec. 13, eff. Sept. 1, 2003.

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

§ 1802.204. Appeal

A party may appeal a decision of the commission in the manner provided for a contested case under Chapter 2001, Government Code.

Cite as Tex. Occ. Code § 1802.204

History. Amended by Acts 2003, 78th Leg., ch. 816, Sec. 4.012, eff. Sept. 1, 2003.

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

§ 1802.205. Payment Of Claim

(a)     If the department's determination under Section 1802.202 is not disputed by the auctioneer or the aggrieved party, the executive director shall pay the claim from the fund, subject to Section 1802.206.
(b)     If a hearing is held on the department's determination, the executive director shall pay to the aggrieved party the amount of actual damages determined by the executive director.
(c)     The amount of actual damages may not include attorney's fees, speculative damages, or lost profits.
Cite as Tex. Occ. Code § 1802.205

History. Amended by Acts 2003, 78th Leg., ch. 816, Sec. 26.052, eff. Sept. 1, 2003

Amended By Acts 2003, 78th Leg., ch. 1276, Sec. 14A.370, eff. Sept. 1, 2003.

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

§ 1802.206. Payment Limits

(a)     The executive director may not pay a single aggrieved party more than $15,000.
(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.
(c)     The total payment of claims against a single auctioneer may not exceed $30,000.
Cite as Tex. Occ. Code § 1802.206

History. Amended by Acts 2013, 83rd Leg. - Regular Session, ch. 1048, Sec. 13, eff. 6/14/2013.

Amended by Acts 2003, 78th Leg., ch. 816, Sec. 26.053, eff. Sept. 1, 2003

Amended By Acts 2003, 78th Leg., ch. 1276, Sec. 14A.371, eff. Sept. 1, 2003.

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

§ 1802.207. Reimbursement; Interest

(a)     If the executive director pays a claim against an auctioneer, the auctioneer shall:
(1)     reimburse the fund immediately or agree in writing to reimburse the fund on a schedule to be determined by rule of the commission; and
(2)     immediately pay the aggrieved party any amount due to that party or agree in writing to pay the party on a schedule to be determined by rule of the commission.
(b)     Payments made by an auctioneer to the fund or to an aggrieved party under this section include interest accruing at the rate of eight percent a year beginning on the date the executive director pays the claim.
Cite as Tex. Occ. Code § 1802.207

History. Amended by Acts 2003, 78th Leg., ch. 816, Sec. 4.013, eff. Sept. 1, 2003.

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

§ 1802.208. Subrogation

If the executive director pays a claim against an auctioneer, the department is subrogated to all rights of the aggrieved party against the auctioneer to the extent of the amount paid to the aggrieved party.

Cite as Tex. Occ. Code § 1802.208

History. Amended by Acts 2003, 78th Leg., ch. 816, Sec. 26.054, eff. Sept. 1, 2003

Amended By Acts 2003, 78th Leg., ch. 1276, Sec. 14A.372, eff. Sept. 1, 2003.

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

§ 1802.209. Effect On Disciplinary Proceedings

(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.
(b)     A license holder's repayment of all amounts owed to the fund does not nullify or modify the effect of another disciplinary proceeding brought under this chapter.
Cite as Tex. Occ. Code § 1802.209

History. Amended by Acts 2013, 83rd Leg. - Regular Session, ch. 1048, Sec. 14, eff. 6/14/2013.

Amended by Acts 2003, 78th Leg., ch. 816, Sec. 4.014, eff. Sept. 1, 2003.

Texas Statutes
Occupations Code
Title 11. Regulation Of Sales And Solicitation
Chapter 1802. Auctioneers
Subchapter F. Denial Of License And Disciplinary Procedures
Current through the 2013 Regular and Special Sessions
§ 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.
Cite as Tex. Occ. Code § 1802.251

History. Amended by Acts 2013, 83rd Leg. - Regular Session, ch. 1048, Sec. 15, eff. 6/14/2013.

Amended by Acts 2003, 78th Leg., ch. 816, Sec. 4.015, eff. Sept. 1, 2003.

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

§ 1802.252. Revocation For Claim On Fund

(a)     The commission may revoke a license issued under this chapter if the executive director makes a payment from the fund as the result of an action of the license holder.
(b)     The commission may probate an order revoking a license.
(c)     An auctioneer is not eligible for a new license until the auctioneer has repaid in full the amount paid from the fund on the auctioneer's account, including interest, unless:
(1)     a hearing is held; and
(2)     the executive director issues a new probated license.
Cite as Tex. Occ. Code § 1802.252

History. Amended by Acts 2003, 78th Leg., ch. 816, Sec. 4.016, eff. Sept. 1, 2003.

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

§ 1802.253. Hearing By State Office Of Administrative Hearings

(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.
(b)     At a hearing under this section, the applicant may:
(1)     be present and be heard in person or by counsel; and
(2)     have an opportunity to offer evidence by oral testimony, affidavit, or deposition.
(c)     Written notice may be served by personal delivery to the applicant or by certified mail to the last known mailing address of the applicant.
(d)    [Repealed by 2013 amendment.]
Cite as Tex. Occ. Code § 1802.253

History. Amended by Acts 2013, 83rd Leg. - Regular Session, ch. 1048, Sec. 17, eff. 6/14/2013.

Amended by Acts 2013, 83rd Leg. - Regular Session, ch. 1048, Sec. 16, eff. 6/14/2013.

Amended By Acts 2011, 82nd Leg., R.S., Ch. 91, Sec. 18.004, eff. September 1, 2011.

Texas Statutes
Occupations Code
Title 11. Regulation Of Sales And Solicitation
Chapter 1802. Auctioneers
Subchapter G. Criminal Penalties
Current through the 2013 Regular and Special Sessions
§ 1802.301. Practicing Without License; Offense

(a)     A person commits an offense if the person acts as an auctioneer without a license.
(b)     An offense under this section is a Class B misdemeanor.
Cite as Tex. Occ. Code § 1802.301

History. Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

§ 1802.302. Frivolous Claim; Offense

(a)     A person commits an offense if the person intends to benefit personally or to harm another and the person:
(1)     institutes under this chapter a claim in which the person knows the person has no interest; or
(2)     institutes under this chapter a frivolous suit or a claim that the person knows is false.
(b)     An offense under this section is a Class B misdemeanor.
Cite as Tex. Occ. Code § 1802.302

History. Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

§ 1802.303. General Criminal Penalty

(a)     A person commits an offense if the person violates a provision of this chapter or a rule adopted by the commission under this chapter for which a penalty is not provided.
(b)     An offense under this section is a Class C misdemeanor.
Cite as Tex. Occ. Code § 1802.303

History. Amended by Acts 2003, 78th Leg., ch. 816, Sec. 4.018, eff. Sept. 1, 2003.

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.