CHAPTER 1802. AUCTIONEERS - Texas Statutes

OCCUPATIONS CODE

TITLE 11. REGULATION OF SALES AND SOLICITATION

CHAPTER 1802. AUCTIONEERS

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 1802.001. DEFINITIONS. In this chapter:

(1) "Advisory board" means the Auctioneer Education 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.

(4) "Auction company" means a person who engages in the business

of arranging, managing, sponsoring, advertising, or conducting

auctions.

(5) "Auctioneer" means an individual who sells or offers to sell

property at auction, with or without receiving valuable

consideration, as a bid caller.

(6) "Commission" means the Texas Commission of Licensing and

Regulation.

(7) Repealed by Acts 2003, 78th Leg., ch. 816, Sec. 4.019(1);

Acts 2003, 78th Leg., ch. 1276, Sec. 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.

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

Amended by Acts 2003, 78th Leg., ch. 816, Sec. 4.001, 4.019(1),

eff. Sept. 1, 2003; Acts 2003, 78th Leg., ch. 1276, Sec. 14.010,

14A.351, eff. Sept. 1, 2003.

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, 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 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;

(5) a foreclosure sale of real property personally conducted by

a trustee under a deed of trust;

(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;

(7) a sale conducted by sealed bid;

(8) an auction conducted only for student training purposes as

part of a course of study approved by the executive director for

auctioneers;

(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;

(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

(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's members.

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

Amended by Acts 2003, 78th Leg., ch. 816, Sec. 26.044, eff. Sept.

1, 2003; Acts 2003, 78th Leg., ch. 1276, Sec. 14A.352, eff. Sept.

1, 2003.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

201, Sec. 1, eff. May 24, 2007.

Sec. 1802.003. PREEMPTION. A political subdivision of this

state may not levy on or collect from an auctioneer or associate

auctioneer a license tax or fee as a regulatory or revenue

measure or require the licensing of an auctioneer or associate

auctioneer, if the auctioneer or associate auctioneer holds a

license under this chapter and is in compliance with this

chapter.

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

SUBCHAPTER B. LICENSE REQUIREMENTS

Sec. 1802.051. LICENSE REQUIRED. (a) A person may not act as

an auctioneer or associate auctioneer in an auction held in this

state unless the person is an individual who holds a license

issued by the executive director under this chapter.

(b) An auctioneer who advertises to conduct an auction in this

state shall provide the auctioneer's name and license number in

the advertisement.

(c) A person who is licensed under this chapter may not act as

an auctioneer for an auction company unless the company is owned

or operated by a person who is licensed under this chapter.

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

Amended by Acts 2003, 78th Leg., ch. 816, Sec. 26.045, eff. Sept.

1, 2003; Acts 2003, 78th Leg., ch. 1276, Sec. 14A.353, eff. Sept.

1, 2003.

Sec. 1802.052. ELIGIBILITY FOR AUCTIONEER'S LICENSE. (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 during which the applicant participated in at

least 10 auctions;

(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).

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

Amended by Acts 2003, 78th Leg., ch. 395, Sec. 1, eff. Sept. 1,

2003.

Sec. 1802.053. ELIGIBILITY FOR ASSOCIATE AUCTIONEER'S LICENSE.

An individual is eligible for an associate auctioneer's license

if the individual:

(1) is a citizen of the United States or a legal alien; and

(2) is employed under the direct supervision of a licensed

auctioneer.

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

Sec. 1802.054. APPLICATION FOR LICENSE. 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) the required bond;

(2) the required license 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; or

(B) proof of exemption from the tax permit requirement under

Chapter 151, Tax Code.

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

Amended by Acts 2003, 78th Leg., ch. 816, Sec. 26.046, eff. Sept.

1, 2003; Acts 2003, 78th Leg., ch. 1276, Sec. 14A.354, eff. Sept.

1, 2003.

Sec. 1802.055. APPLICATION FOR EXAMINATION. (a) 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 examination fee.

(b) On receipt of an examination application and fee, the

executive director shall furnish the applicant with:

(1) study materials and references on which the examination will

be based; and

(2) a schedule specifying the dates and places the examination

will be offered.

(c) The applicant may take the examination at any scheduled

offering not later than the 90th day after the date the applicant

receives the study materials.

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

Amended by Acts 2003, 78th Leg., ch. 816, Sec. 26.047, eff. Sept.

1, 2003; Acts 2003, 78th Leg., ch. 1276, Sec. 14A.355, eff. Sept.

1, 2003.

Sec. 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.

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

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

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

1, 2003.

Sec. 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.

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

Sec. 1802.059. LICENSING BY RECIPROCITY. (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 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.

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

Amended by Acts 2003, 78th Leg., ch. 816, Sec. 4.002, eff. Sept.

1, 2003.

Sec. 1802.060. TERM OF LICENSE. A license issued under this

chapter shall be issued for the period prescribed by the

commission.

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

Sec. 1802.062. LICENSE NOT REQUIRED FOR CERTAIN EMPLOYEES. 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.

Added by Acts 2003, 78th Leg., ch. 395, Sec. 2, eff. Sept. 1,

2003.

SUBCHAPTER C. AUCTIONEER EDUCATION ADVISORY BOARD

Sec. 1802.101. AUCTIONEER EDUCATION ADVISORY BOARD. The

advisory board shall advise the commission on educational

matters.

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

Amended by Acts 2003, 78th Leg., ch. 816, Sec. 4.003, eff. Sept.

1, 2003; Acts 2003, 78th Leg., ch. 1276, Sec. 14A.359, eff. Sept.

1, 2003.

Sec. 1802.102. APPOINTMENT OF ADVISORY BOARD; MEMBERSHIP;

ELIGIBILITY. (a) The advisory board consists of seven members

appointed as follows:

(1) three members who are licensed auctioneers appointed by the

presiding officer of the commission, with the commission's

approval;

(2) the executive director of the Texas Economic Development and

Tourism Office or the director's designee;

(3) the commissioner of education or the commissioner's

designee; and

(4) two public members.

(b) In appointing advisory board members under Subsection

(a)(1), the presiding officer of the commission may not appoint

members who reside in contiguous senatorial districts.

(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.

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

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

1, 2003.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

457, Sec. 5, eff. September 1, 2009.

Sec. 1802.103. TERMS; VACANCIES. (a) The members appointed

under Section 1802.102(a)(1) serve two-year terms that expire on

September 1. 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.

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

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

1, 2003.

Sec. 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.

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

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

1, 2003.

Sec. 1802.105. REMOVAL. A member appointed under Section

1802.102(a)(1) may be removed by a six-sevenths vote of the

advisory board.

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

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

457, Sec. 6, eff. September 1, 2009.

Sec. 1802.106. COMPENSATION. A member appointed under Section

1802.102(a)(1) may not receive:

(1) compensation for serving on the advisory board; or

(2) reimbursement for expenses.

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

Sec. 1802.107. MEETINGS. (a) The advisory board shall meet at

least quarterly each calendar year.

(b) The advisory board may meet at other times at the call of

the presiding officer.

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

Sec. 1802.108. CIVIL LIABILITY. A member of the advisory board

is not liable in a civil action for an act performed in good

faith while performing duties as an advisory board member.

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

Sec. 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.

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

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

1, 2003.

SUBCHAPTER D. AUCTIONEER EDUCATION AND RECOVERY FUND

Sec. 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.

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

Sec. 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.

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

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

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

1, 2003.

Sec. 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 $300,000, 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 $300,000.

(c) The fees paid under this section shall be deposited in the

fund.

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

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

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

1, 2003.

Sec. 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.

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

Sec. 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.

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

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

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

1, 2003.

Sec. 1802.156. EDUCATION EXPENDITURES PERMITTED. The executive

director may use amounts in excess of $250,000 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.

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

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

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

1, 2003.

SUBCHAPTER E. COMPLAINT PROCEDURES

Sec. 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.

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

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

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

1, 2003.

Sec. 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.

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

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

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

1, 2003.

Text of section as amended by Acts 2003, 78th Leg., ch. 816, Sec.

4.011.

Sec. 1802.203. 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.

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

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

1, 2003.

Text of section as amended by Acts 2003, 78th Leg., ch. 1215,

Sec. 13

Sec. 1802.203. 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.

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

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

2003.

Sec. 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.

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

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

1, 2003.

Sec. 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.

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

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

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

1, 2003.

Sec. 1802.206. PAYMENT LIMITS. (a) The executive director may

not pay a single aggrieved party more than $10,000.

(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 $20,000.

(c) The total payment of claims against a single auctioneer may

not exceed $20,000.

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

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

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

1, 2003.

Sec. 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.

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

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

1, 2003.

Sec. 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.

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

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

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

1, 2003.

Sec. 1802.209. EFFECT ON DISCIPLINARY PROCEEDINGS. (a) This

subchapter and Section 1802.252 do not limit the commission'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.

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

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

1, 2003.

SUBCHAPTER F. DENIAL OF LICENSE AND DISCIPLINARY PROCEDURES

Sec. 1802.251. DENIAL OF APPLICATION; SUSPENSION OR REVOCATION

OF LICENSE. The commission 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 violating the Business & Commerce Code in

conducting an auction.

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

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

1, 2003.

Sec. 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.

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

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

1, 2003.

Sec. 1802.253. HEARING BY STATE OFFICE OF ADMINISTRATIVE

HEARINGS.

Text of subsec. (a) as amended by Acts 2003, 78th Leg., ch. 816,

Sec. 4.017

(a) Before denying an application for a license, the commission

shall:

(1) set the matter for a hearing; 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.

Text of subsec. (a) as amended by Acts 2003, 78th Leg., ch. 1215,

Sec. 15

(a) Before denying an application for a license or suspending or

revoking a license, the commissioner shall:

(1) set the matter for a hearing to be conducted by the State

Office of Administrative Hearings; and

(2) before the 30th day before the hearing date, notify the

applicant or license holder 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) If the applicant who is the subject of the hearing is an

associate auctioneer, the commission shall provide written notice

to the auctioneer who employs the associate auctioneer or who has

agreed to employ the associate auctioneer by mailing the notice

by certified mail to the auctioneer's last known mailing address.

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

Amended by Acts 2003, 78th Leg., ch. 816, Sec. 4.017, eff. Sept.

1, 2003; Acts 2003, 78th Leg., ch. 1215, Secs. 14, 15, eff. Sept.

1, 2003.

SUBCHAPTER G. CRIMINAL PENALTIES

Sec. 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.

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

Sec. 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.

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

Sec. 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.

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

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

1, 2003.