Auctioneers


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House Bill 3215

House Bill 3215, 85th Legislative Session (Regular), became effective September 1, 2017. It does not change the Auctioneer licensing law or rules, but it does make some changes to Section 503.024, Texas Transportation Code regarding whether a person is considered to be acting as a dealer.

The bill provides that a person is not considered to be engaging in business as a dealer if they sell five or more vehicles to any person, if the vehicles were acquired for personal or business use, if the sale is made through a licensed auctioneer, and if the sale is not to circumvent or otherwise avoid a requirement of Chapter 503, Transportation Code.

Additionally, the bill provides that a licensed auctioneer is not engaging in business as a dealer by conducting the sale of a business that holds the title to any number of vehicles.

This law is enforced by the Texas Department of Motor Vehicles.

Consumer Alert: Notice of Auctioneer Recovery Fund Proof of Claim regarding Auctioneer Vern Wallace, d/b/a Houston Auction Barn

TDLR has learned that Vern Wallace, a formerly licensed Auctioneer operating out of the Houston area, recently filed for Chapter 7 bankruptcy protection in the United States Bankruptcy Court, Southern District, Houston Division. The bankruptcy case is titled: In re Vern R. Wallace, Case No. 17-30667-DRJ7.

If you entered into a contractual agreement with Mr. Wallace to sell items at auction and did not receive proceeds to which you were entitled, you may be eligible to file a claim with the Auctioneer Recovery Fund.

To initiate the claims process, you must:

  • complete the Auctioneer Recovery complaint form (pdf);
  • provide a detailed list of items consigned to Mr. Wallace or to Houston Auction Barn and the estimated value in U.S. dollars for each item;
  • provide copies of ads for the auctions in which your merchandise was sold, if available;
  • provide any documentation showing the value of the consigned items; and
  • list the total amount you are claiming.

Please return the complaint form with your supporting documentation to:

Texas Department of Licensing and Regulation
Office of the General Counsel, Bankruptcy Division
P.O. Box 12157, Austin, TX 78711

Please contact Neta Lamas, TDLR Office of the General Counsel, with questions or concerns regarding this notice, the complaint form, and/or the necessary supporting documents at (512) 463-3306 or email waneta.lamas@tdlr.texas.gov

Important Information About the Auctioneer Recovery Fund

The Auctioneer Recovery Fund is established by the State of Texas and managed by TDLR to provide compensation to individuals who are harmed by the actions of a licensed auctioneer. Additional information about the Fund can be found at https://www.tdlr.texas.gov/auc/aucclaim.htm.

In accordance with Texas Occupations Code, Chapter 1802 and 16 Texas Administrative Code, Chapter 67, claims against the Fund are limited in the amount of reimbursement available to Texas consumers. This includes a cap on the maximum total amount that TDLR may pay out to all consumers for claims against a particular Auctioneer.

Upon receipt of the claim form and supporting documentation, TDLR will conduct a review and determine whether you filed a valid claim against the Fund. You will receive notice of TDLR’s determination and information regarding the next steps in the claims process, if applicable.

TDLR believes that the number and dollar amount of claims submitted to it will exceed the maximum amount allotted by law to reimburse consumers for claims against individual Auctioneers. This information serves as notice that any payment received from the Fund will not fully reimburse consumers for monetary losses that they may have suffered in their contacted business dealings with Mr. Wallace. Any consumer who is not fully reimbursed through the Fund may seek further payment either through the bankruptcy court or through other judicial remedies in civil court.

For guidance or advice about other legal remedies that may be available to you, you must contact a private attorney. TDLR will not, and cannot, provide legal counsel to Texas consumers.

Vacancy on the Auctioneer Advisory Board

The Texas Department of Licensing and Regulation announces a vacancy on the Auctioneer Advisory Board established by Texas Occupations Code, Chapter 1802. The announcement will be published in the October 6, 2017 publication of the Texas Register. This announcement is for a public member.

Interested persons should submit an application using the Advisory Board Application System. Applicants can also request an application from the Department by telephone (800) 803-9202 or e-mail advisory.boards@tdlr.texas.gov.


Advisory Board Meetings

Previous Meeting - May 31, 2017

The Auctioneer Advisory Board met May 31 in Austin. The agenda and staff reports are available online. The meeting was archived and is available on TDLR's YouTube channel.


House Bill 2481 Frequently Asked Questions

The Frequently Asked Questions (FAQs) below have been updated to reflect some of the changes to Chapter 1802, Texas Occupations Code (Auctioneers Law),as a result of the 84th Texas Legislature enacting House Bill 2481. These changes are significant and took effect on September 1, 2015. We will continue to add to the FAQs as we implement the bill and adopt rules to keep you informed about updates to the Auctioneer Program. Due to HB 2481 the Auctioneer Program looks much like it did just prior to June 14, 2013. Some of the most significant changes to the Law include:

  • reinstating the Associate Auctioneer Program as a path to gain auction experience that can be used in lieu of taking an examination to become a licensed auctioneer,
  • clarifying that an auctioneer license is only needed to conduct live bid auctions,
  • removing reference to regulating auctions over the Internet, and
  • renaming the Auctioneer Education Advisory Board to the Auctioneer Advisory Board to reflect the wider range of advice provided by the Board to TDLR and the Texas Commission of Licensing and Regulation.

If you have questions about the Auctioneer Program please contact us at: cs.auctioneers@tdlr.texas.gov.

1. What are the requirements for an Associate Auctioneer license?

To be eligible for an Associate Auctioneer’s license you must:

  • Be a citizen of the United States or a legal alien;
  • Hold a high school diploma or a high school equivalency certificate; and
  • Be employed under the direct supervision of a licensed Auctioneer.

2. If I held an Associate Auctioneer license prior to June 14, 2013, (when HB 3038 deregulated the Associate program), will I now be able to use this experience to gain an Auctioneer license?

Yes.

3. If I held an Associate Auctioneer license previously, how do I apply for an Auctioneer License?

You will need to submit the following:

  • Auctioneer Application;
  • Employment Report Form completed by your licensed Auctioneer sponsor;
  • Your tax ID number or letter of waiver;
  • Proof of successful completion of 80 hours of classroom instruction; and
  • The total fee of $100.00.

Forms are available on our website. (Note: You must have held your Associate Auctioneer license for at least two years in order to qualify for an Auctioneer license.)

4. When can I apply for an Associate Auctioneer license?

Applications will be available on our website no later than February 1, 2016. To receive the most up to date information, sign up for our Email updates.

5. Can I get the same license number I previously held as an Associate Auctioneer?

Yes, you will be issued the same license number.

The Auctioneers FAQs are a great resource to answer many questions about the auctioneer’s law and rules, education and licensing questions, as well as general information.

TDLR licensed auctioneers should use the online tool to verify that their personal contact information is correct. Keeping this information current is important for TDLR to communicate with the auctioneers.

The Associate Auctioneer license application is now available on the Auctioneer forms page. Please see the Frequently Asked Questions page for further information.

Auctioneer license on-line renewal - A renewal form is mailed approximately 65 days prior to the license expiration date. You can renew your license online and pay with a credit card.

Need a replacement license? You can also order a duplicate license online.

For more information about the TDLR Auctioneers program, contact TDLR at CS.Auctioneers@tdlr.texas.gov or 800-803-9202. Also, you can sign up to receive TDLR Email Updates to be notified about any further changes or updates to the Auctioneer Program.