TITLE 16.ECONOMIC REGULATION

Part 4. TEXAS DEPARTMENT OF LICENSING AND REGULATION

Chapter 67. AUCTIONEERS

The Texas Department of Licensing and Regulation (''Department'') proposes amendments to existing rules at 16 Texas Administrative Code, §§67.10, 67.20 - 67.22, 67.25, 67.40, 67.65, 67.70, 67.80, and 67.94, regarding the Auctioneers program. The Texas Department of Licensing and Regulation (''Department'') proposes new rules at 16 Texas Administrative Code, §§67.23, 67.24, 67.71, and 67.72, and the repeal of 16 Texas Administrative Code, §§67.41, 67.42, 67.60, 67.81 - 67.83, 67.90, 67.100, 67.101, and 67.102, regarding the auctioneers program.

Rule 67.10 Definitions is amended to delete the definition of ''cheating'' as it states the obvious. Three new definitions are added. The word ''bond'' is defined since the term is used in the statute in reference to the recovery fund. The word ''operated'' is defined to make it clear that operating an auction company requires more than being employed to bid call and finally, the word ''participated'' is defined to mean ''to perform bid calling.''

Rule 67.20 is amended in several respects. The first is a change in title from ''Licensing Requirements Auctioneers'' to ''Licensing Requirements Auctioneer''. Subsection (a) is amended by dropping the phrase, ''on the form provided by the department.'' Subsection (b)(3)(A) is amended by adding the word ''a'' before ''written. Subsection (b)(3)(B) is amended to clarify what an individual who is applying for a license without having passed an examination must provide in his application. Subsection (b)(6) is amended by deleting the reference to applications filed after January 1, 2004, as it is no longer applicable. Further subsections (b)(6)(A) and (B) are deleted in this rule and requirements for schools providing training are set out in new §67.23. Subsection (c) is deleted and is now set out in new §67.70(j). Subsection (d) is deleted and is now set out in new §67.24.

Rule 67.21 License Requirements--Associate Auctioneers is amended to reflect requirements for licensure rather than practice requirements. To that end subsections (a) - (e) are deleted as they reflect practice requirements.

Rule 67.22 License Requirements--Examination is amended to provide information concerning when an applicant may take an examination and subsections (a) - (e) are deleted as (a), (b) and (c) set out procedures for scheduling and taking examinations while (d) is no longer applicable and (e) deals with disciplinary matters addressed in the Commission's general rules found in 16 Texas Administrative Code, Chapter 60.

Rule 67.23 Pre-licensure Education is a new rule that describes the statutory requirement that applicants must have at least 80 hours of training in approved courses and how a course provider or school may obtain course approval.

Rule 67.24 License Renewal is a new rule specifying that licenses expire one year from the date of issuance and that timely application for renewal must be made to avoid late renewal fees.

Rule 67.25 Continuing Education is amended at subsection (d) by the deleting the phrase ''for one renewal period.'' The phrase is deleted because it is not needed and to make this rule language the same as similar rules adopted for other licensing programs administered by the department. Each course is approved annually and is assigned a unique number for that year, even though the subject matter may be the same for more than one year. The deleted phrase is not needed.

Rule 67.40 Education and Recovery Fund is amended at subsection (b) to add the phrase, ''based on the fund balance'' to make it clear that a determination regarding additional fees is not required on December 31 of each year, but that the determination is based on the fund balance at the end of each year. Subsection (c) is deleted as it adds nothing to the process of maintaining the fund. Old subsection (d) (now subsection (c)) is amended to make it clear that all applicants for licensure must pay the initial fee before a license will be issued. New subsections (d) - (h) are replacements as needed, for deleted §64.41 and §67.42.

These new subsections detail the process for payments made from the recovery fund to persons harmed by actions of licensees and they provide details of the statutory requirements for the licensee to repay the fund and to pay to customers who are harmed any amount due to the customer not paid by the fund. The statute requires payment of interest and it allows the department to establish payment procedures that it may allow an auctioneer to use. The proposed rules provide that repayment shall be made in monthly installments determined by agreement between the department and the licensee with input from the customer. Failing agreement, the rule provides for minimum payments depending on the size of the debt.

Rule 67.60 is deleted as responsibilities of the department do not require rules.

Rule 67.65 Advisory Board is amended at subsection (a) to more clearly set out duties of the board. Subsections (d) and (e) are deleted since they repeat requirements for the makeup of the board that unambiguously are set out in statute and are not needed in rule.

Rule 67.70 Auctioneer Requirements is amended in its title to reflect that the rule addresses auctioneer requirements only and not requirements for associate auctioneers. Subsection (a) is amended to delete the reference to auction companies, and to require an auctioneer to list his license number on advertisements for auctions that the auctioneer operates. Subsection (d) is amended to require that the auctioneer, as opposed to an auction company, must provide assumed names if any, of any auction company the auctioneer owns. Subsection (c) is new to this rule but is similar to old §67.100(a) which is deleted. The rule makes it clear that an auctioneer may not allow an unlicensed person to call bids at an auction. Old subsection (c) is deleted and is replaced in §67.71(b). Subsection (d) is new to the rule and is the same as old §67.100(b). Old subsection (d) is deleted. New subsection (e) is the same as old §67.100(c) and is moved here for clarity. Old subsection (e) is deleted and is similar to new subsection (b) of §67.94.

The language of the following new subsections to the rule is the same as language in the old subsections of rules. They are moved here for clarity. After each new subsection listed below is a reference to the old subsection:

§67.70(f) - §67.100(d)

§67.70(g) - §67.100(e)

§67.70(h) - §67.100(f)

§67.70(i) - §67.100(g)

§67.70(k) - §67.101

§67.70(l) - §67.102(a)

§67.70(m) - §67.102(b)

§67.70(n) - §67.102(c)

Rule 67.70 new subsection (j) is the similar to old §67.20(c). It is moved here for clarity.

New rule 67.71 Requirements--Sponsoring Auctioneers is added to clearly spell out the responsibilities of a licensed auctioneer who serves as a sponsor for an associate auctioneer. The language of subsection(a) comes largely from old §67.21(a) requiring an employer - employee relationship between the sponsor and the associate. The new subsection also recognizes that an associate may be employed by an auction company that also employs the sponsoring auctioneer. Subsection (b) is similar to old §67.70(c). Subsection (c) is intended to replace the provisions of old §67.21(b). Subsection (d) is new and makes it clear that a sponsoring auctioneer who terminates his relationship with an associate must provide documentation to the associate of matters an associate must have performed in order to become licensed without taking an examination that were performed by the associate under the supervision of the sponsor.

Rule 67.72 Requirements--Associate Auctioneers is a new rule that clearly sets out practices requirements for associates. Subsection (a) is similar to old §67.21(a) and it makes it clear that an associate may be supervised only by the sponsoring auctioneer. Subsection (b) is similar to old §67.70(c). Subsection (c) specifies the functions that an associate must have performed under his sponsor's supervision in order for the associate to qualify to become licensed as an auctioneer without taking the examination. Subsection (d) is similar to old §67.20(c). Subsection (e) makes it clear that an associate may not provide auctioneer services except under the supervision of a sponsoring auctioneer.

Rule 67.80 is amended to make it the ''Fees'' rule rather than having several fee rules. Subsection (a) is amended to make it clear that the fee is an application fee for a license, and subsection (b) is amended to do the same for associate auctioneers. Subsection (c) is new and is similar to old §67.81(a) clarified so that it refers to a fee for application for renewal. Subsection (d) is the same for old §67.81(b). Subsection (e) is the same as old §67.81(c). Subsection (f) is similar to old §67.82. Subsection (g) is the same as old §67.83. Subsection (h) sets out the fee for curriculum review for auctioneer schools seeking approval. Subsection (i) is similar to old §67.40(d) with minor language changes, but no fee change. Subsection (i) makes it clear that all fees are non-refundable as they are all application fees, not licensing fees with the exception of the initial recovery fund fee.

Rule 67.81 Fees--Renewal and §67.82 Fees--Duplicate License are deleted as their provisions are now in §67.80.

Rule 67.90 Sanctions--Administrative Sanctions/Penalties is deleted. The provisions of this rule are found in the general Rules of the Commission, 16 Texas Administrative Code, Chapter 60.

Rule 67.94 Sanctions--Revocation, Suspension or Denial Because of a Criminal Conviction is amended at subsection (a) making statutory references current and to replace the word ''commissioner'' with ''commission''.

New subsection (b) is similar to old §67.60(a) which was deleted.

Rule 67.100 is deleted and its provisions are now found in §67.70 and §67.72. Rule 67.101 is deleted and its provisions are now found in §67.70. Rule 67.102 is deleted and its provisions are now found in §67.70.

These rule changes are necessary to bring the rules into compliance with the statute and to make them easier to understand.

William H. Kuntz, Jr., Executive Director, has determined that for the first five-year period the proposed amendments, deletions and new rules are in effect there will be no cost to state or local government as a result of enforcing or administering the amendments.

Mr. Kuntz also has determined that for each year of the first five-year period the new rules, amendments and deletions are in effect, the public benefit will be that the rules are more logically structured making them easier to comprehend, the language is clarified and the duties of auctioneers who supervise associate auctioneers are defined.

There will be no effect on large, small, or micro-businesses as a result of the proposed amendments, new rules and deletions. There are no anticipated economic cost increases to persons who are required to comply with the rules as amended.

Comments on the proposals may be submitted to Tamala Fletcher, Legal Assistant, Texas Department of Licensing and Regulation, P.O. Box 12157, Austin, Texas 78711, or facsimile (512) 475-3032, or electronically: tamala.fletcher@license.state.tx.us. The deadline for comments is 30 days after publication in the Texas Register .

16 TAC §§67.10, 67.20 - 67.25, 67.40, 67.65, 67.70 - 67.72, 67.80, 67.94

The amendments and new rules are proposed under Texas Occupations Code, Chapter 1802, and Texas Occupations Code, Chapter 51, which authorizes the Department to adopt rules as necessary to implement this chapter and any other law establishing a program regulated by the Department.

The statutory provisions affected by the proposal are those set forth in Texas Occupations Code, Chapter 1802 and Texas Occupations Code, Chapter 51. No other statutes, articles, or codes are affected by the proposal.

§67.10.Definitions.

The following words and terms, when used in this chapter [ section ] shall have the following meanings, unless the context clearly indicates otherwise.

(1) Auction without reserve -- (also called Absolute Auction)--An auction in which property put up for sale is sold to the highest bidder, where the seller may not withdraw the property from the auction after the auctioneer calls for bids unless no bid is made in a reasonable time, and where the seller may not bid himself or through an agent.

(2) Auction with reserve--An auction in which the seller or his agent reserves the right to establish a minimum bid, accept or reject any and all bids, and withdraw the property at any time prior to the announcement of the completion of the sale by the auctioneer.

(3) Bond--Recovery fund fee.

[ (3) Cheating--Attempting to obtain, obtaining, providing, or using answers to examination questions by deceit, fraud, dishonesty, or deception while taking a qualification examination.]

(4) Employed by a licensed auctioneer--Participating in all aspects of the auction business under the supervision of a licensed auctioneer.

(5) Operated--Means to have fiduciary and operational responsibilities for all aspects of an auction company's auctions conducted in Texas, and to have supervisory responsibility for the company's employees who perform auction functions in Texas.

(6) Participated--Means to have performed bid calling.

(7) [ (5) ] Recurring basis--More than once every 12 months.

§67.20.License Requirements Auctioneer [ Auctioneers ].

(a) An applicant for licensure as an auctioneer must submit a completed application [ on the form provided by the department ] along with required fees.

(b) To obtain a license as an auctioneer an applicant must:

(1) be at least 18 years of age;

(2) be a citizen of the United States or a legal alien;

(3) either

(A) pass a written or oral examination provided by the department; or

(B) provide proof of having [ have ] been employed and trained by a licensed auctioneer for at least two years and of having [ have ] participated in at least ten auctions;

(4) hold a high school diploma or a high school equivalency certificate;

(5) not have been convicted of a felony within five years of the application date; and

(6) [ for applications filed after January 1, 2004, ] show proof of successful completion of at least 80 hours of classroom instruction at an auction school with a curriculum approved by the department.

[ (A) Proprietary auction schools having a Certificate of Approval issued by the Texas Workforce Commission may obtain department approval by submitting an application for Auction School Registration along with the certification.]

[ (B) Other auction schools submitting an application for Auction School Registration will be reviewed on a case by case basis to assure that licensing applicants presenting credentials from the schools will have completed at least 80 hours of classroom instruction in courses relating to auctions.]

[ (c) All licensees must report any change of address to the department within 30 days.]

[ (d) Licenses expire one year from the date of issuance and must be renewed by that date to avoid late renewal fees.]

§67.21.License Requirements--Associate Auctioneers.

An applicant for licensure as an associate auctioneer must:

(1) submit a completed application along with required fees;

(2) be sponsored by a licensed auctioneer; and

(3) either be a citizen of the United States or a legal alien.

[ (a) Associate auctioneers must be employed by, and under the direct on-premises supervision of a licensed Texas auctioneer. An associate auctioneer shall offer his services only to a Texas licensed auctioneer. There must be a legitimate employee-employer relationship between the associate and the licensed auctioneer.]

[ (b) An associate auctioneer must participate in all aspects of the auction business involving the laws of this state. To satisfy the eligibility requirements for an Auctioneer license under the Texas Occupations Code, §1802.052(a)(3)(B) an associate auctioneer must be licensed for two years and bid-call in at least 10 auctions, and must participate in, but not have sole responsibility for each of the following tasks at least once: appraising, inventorying, advertising, property make ready, site selection and preparation, lotting, registration, clerking, cashiering, bid-calling, ring working, property check out, security, accounting, and managing an escrow account.]

[ (c) Any change of employment by a licensed associate auctioneer must be submitted to the department's Austin office prior to such action and a letter must be submitted by the former employer stating the areas in which the associate auctioneer participated and the number of auction sales at which the associate participated as bid-caller.]

[ (d) To obtain a license as an associate auctioneer an applicant must either be a citizen of the United States or a legal alien.]

[ (e) Licenses expire one year from the date of issuance and must be renewed by that date to avoid late renewal fees.]

§67.22.License Requirements--Examinations.

If an applicant fails the examination twice during the one year application period, the application will be terminated and the applicant may not reapply until one year from the date of the second failure.

[ (a) Applications for examinations must be complete and must be postmarked at least 30 days before the scheduled examination.]

[ (b) An applicant who wishes to reschedule his examination for a later date must notify the department in writing, postmarked no later than five working days before the exam date. Two free reschedules are allowed.]

[ (c) An applicant who does not take an examination for which he was scheduled, and does not notify the department that he will not take the exam, must pay another exam fee.]

[ (d) An applicant who passes an examination may be licensed up to 90 days from the date on the grade notice sent by the department.]

[ (e) Cheating on an examination is grounds for denial of a license.]

§67.23.Pre-licensure Education .

(a) Proprietary auction schools having a Certificate of Approval issued by the Texas Workforce Commission may obtain department approval by submitting an application for Auction School Registration along with the certification and payment of the curriculum review fee.

(b) Other auction schools submitting an application for Auction School Registration will be reviewed on a case by case basis to assure that licensing applicants presenting credentials from the schools will have completed at least 80 hours of classroom instruction in courses relating to auctions.

§67.24.License Renewal.

Licenses expire one year from the date of issuance and must be renewed by that date to avoid late renewal fees.

§67.25.Continuing Education.

(a) Terms used in this section have the meanings assigned by Chapter 59 of this title, unless the context indicates otherwise.

(b) To renew a license as an auctioneer or associate auctioneer, a licensee must complete six hours of continuing education in courses approved by the department, including two hours of instruction in laws and rules that regulate the conduct of auctioneers and associate auctioneers.

(c) The continuing education hours must have been completed within the term of the current license, in the case of a timely renewal. For a late renewal, the continuing education hours must have been completed within the one year period immediately prior to the date of renewal.

(d) A licensee may not receive continuing education credit for attending the same course more than once [ for one renewal period ].

(e) A licensee shall retain a copy of the certificate of completion for a course for one year after the date of completion. In conducting any inspection or investigation of the licensee, the department may examine the licensee's records to determine compliance with this subsection.

(f) To be approved under Chapter 59 of this title, a provider's course must be dedicated to instruction in one or more of the following topics:

(1) Texas Occupations Code, Chapter 1802, Auctioneers;

(2) Title 16, Texas Administrative Code, Chapter 67, Auctioneers Administrative Rules;

(3) other laws and rules that regulate the conduct of auctioneers and associate auctioneers;

(4) auction-related laws, such as the Uniform Commercial Code--Sales, Title 1, Chapter 2, Texas Business and Commerce Code §2.328 and the Deceptive Trade Practices-Consumer Protection Act, Chapter 17, Subchapter E, Texas Business and Commerce Code; or

(5) business practices, such as insurance, auction ethics, contracts, maintenance of trust accounts, and marketing.

(g) This section shall apply to providers and courses for auctioneers and associate auctioneers upon the effective date of this section.

(h) This section shall apply to auctioneer and associate auctioneer licenses issued under Texas Occupations Code, Chapter 1802, Subchapter B that expire on or after January 1, 2006.

§67.40.Education and Recovery Fund.

(a) In each year in which the balance of the Education and Recovery Fund is less than $300,000 the Department will determine the fee that shall be paid by all license holders into the Education and Recovery Fund (The Fund).

(b) The necessity for assessing the fee will be determined by the Department based on the fund balance on each December 31st. The fee shall be paid in addition to the renewal fee. The renewal notice sent by the Department will reflect the fee due to the fund.

[ (c) The fee that is assessed by the Department shall be in effect for a period of 12 months. The fee shall be paid by each license holder, upon annual renewal of the license during the 12-month period.]

(c) [ (d) ] Applicants [ In addition to any other fees, all new applicants ] for an Auctioneer or Associate Auctioneer license shall [ will ] pay the initial recovery [ a $100 ] fee to the fund before a license will be issued.

(d) If the department determines, either with the agreement of the auctioneer and claimant or at a hearing held on a disputed amount, that the auctioneer owes to the aggrieved person damages greater than the maximum of $10,000 allowed under the Act, the auctioneer must pay the amount not paid by the department to the aggrieved party. If the department determines that the auctioneer owes damages to more than one aggrieved person arising out of one auction at one location, and the sum of all damages owed exceeds $20,000, the department shall prorate $20,000 from the recovery fund among the aggrieved persons, and the auctioneer must pay the amount not paid to each of the aggrieved persons.

(e) The total payment from the recovery fund of claims against an auctioneer may not exceed $20,000. If additional claims are filed before the auctioneer has reimbursed the Fund and repaid any amounts due an aggrieved party, the department shall hold a hearing to determine if the additional claims must be satisfied by the auctioneer before the commissioner issues or renews a license, whether probated or not.

(f) If a claim is paid against an auctioneer, and the auctioneer cannot immediately reimburse the recovery fund, the Executive Director may allow the auctioneer to sign an agreement with the department to reimburse the Fund at the applicable rate described below plus the interest accrued on the unpaid principal during the prior month at the rate of 8 percent per year.

(g) If an amount is due an aggrieved party, and the auctioneer cannot immediately pay the aggrieved party, the Executive Director may allow the auctioneer to sign an agreement with the party to reimburse the aggrieved party at the applicable rate described below plus the interest accrued on the unpaid principal during the prior month at the rate of 8 percent per year.

(h) Reimbursement of the principal owed is to be paid in monthly installments determined by agreement between the department and the auctioneer with consideration given to input from any aggrieved party. If an agreement is not reached, monthly installments shall be determined as a percentage of the initial principal amount according to the following schedule:

(1) $0.01 - $500.00--20%

(2) $500.01 - $1,000--10%

(3) $1,000.01 - $3,000.00--5%

(4) $3,000.01 and over--3%

§67.65.Advisory Board.

(a) The board [ The purpose of the Auctioneer Education Advisory Board ] is established to advise the Commission on educational matters including those matters relating to use of the educational trust fund established with fees collected for the auctioneer recovery fund.

(b) Recommendations of the board will be transmitted to the Commission.

(c) Board meetings are called by the Presiding Officer. Meetings in excess of one each calendar quarter shall be authorized by the Commission or the Commission's designee.

[ (d) The board shall consist of the auctioneer members specified in the Act, the commissioner of the Texas Department of Commerce and the commissioner of education or their designees, and three consumers of services provided by licensed auctioneers.]

[ (e) The consumers of services should include at least one person who consigns property to auctioneers for sale and at least one person who regularly buys at auction. Consumer members serve for terms of two years and expire September 1 of the year of expiration.]

§67.70. Auctioneer Requirements [ of the License Holder ].

(a) An auctioneer [ auction company ] must list his [ the ] license number [ under which it is operating ] in any yellow page advertisement which consists of more than name, address and phone number.

(b) An auctioneer must furnish to the department the name, including assumed names, address, and phone number of all auction companies which he owns or operates. [ Any auction company using an assumed name must furnish a copy of the assumed name registration. ]

(c) A licensee may not allow any person who is not either a licensed auctioneer or a licensed associate auctioneer to call bids at a sale.

[ (c) An auctioneer who is supervising an associate auctioneer must be on premises for any auction which is bid-called by the associate auctioneer.]

(d) A licensee may not knowingly use, or permit the use of, false bidders, cappers, or shills at any auction.

[ (d) An auctioneer or an associate auctioneer who is licensed in Texas, or who is licensed in another state as well as in Texas, who has been convicted of a felony or a misdemeanor either in Texas or in another state, must notify the department no later than thirty days after being convicted.]

(e) Before beginning an auction, a licensee must announce, give notice, display notice and/or disclose:

(1) that the auctioneer conducting the sale is licensed by the department and is covered by a Recovery Fund administered by the department;

(2) the terms and conditions of the sale including whether a buyer's premium will be assessed; and

(3) if the owner, consignor, or agent thereof has reserved the right to bid.

[ (e) An auctioneer or an associate auctioneer who is in another state as well as in Texas, who has had his auctioneer license in another state suspended, revoked, or renewal denied as a result of an administrative hearing, must notify the department of the administrative action no later than thirty days after receipt of the final order advising of that action.]

(f) If an auctioneer advertises an auction as "absolute" or "without reserve", no lots included may have a minimum bid. Advertising may include the wording, "many lots are without reserve"; however, the auction may not be titled, headed or called an "absolute" or "without reserve" auction unless all lots meet that criteria.

(g) All auctioneers shall notify consumers and service recipients of the name, mailing address, and telephone number of the department for purposes of directing complaints to the department. The licensees may use a sticker or rubber stamp to convey the required information. The notification shall be included on any seller or consignor contract and on at least one of the following:

(1) a sign prominently displayed at the place of the auction;

(2) bills of sale or receipt to be given to buyers; or

(3) on bidder cards.

(h) An auctioneer who intends to charge a buyer's premium at an auction must state this condition and the amount of the buyer's premium in all advertising for the auction.

(i) Any statement in an advertisement for an auction that alters the meaning of another statement in the advertisement must be in a type font at least as large as the type font of the statement it alters.

(j) An auctioneer must report any change of address to the department within 30 days.

(k) Each licensed auctioneer must:

(1) maintain a separate trust or escrow account in a federally insured bank or savings and loan association, in which shall be deposited all funds belonging to others which shall come into the auctioneers possession;

(2) deposit all proceeds from an auction into his trust or escrow account within 72 hours of the auction unless the owner/consignor of the property auctioned is paid immediately after the sale or the written contract stipulates other terms, such as sight drafts;

(3) pay any public monies, including but not limited to state sales tax, received into the State Treasury at the times and as per the regulations prescribed by law; and

(4) pay all amounts due the seller within 15 banking days of the auction unless otherwise required by statute or a written contract between license holder and seller.

(l) Each licensed auctioneer shall keep records relative to all auctions for at least two years from the date of the sale.

(m) The records for each auction must state the name(s) and address of the owners of the property auctioned, the date of the sale, the name of the auctioneer and clerk for the sale, the gross proceeds, the location and account number of the auctioneer's trust or escrow account, an itemized list of all expenses charged to the consignor or seller, a list of all purchasers at the auction and a description and selling price for each item sold.

(n) In addition, the auctioneer shall keep, as part of the records for each auction, all documents relating to the auction. These documents shall include, but are not limited to, settlement sheets, written contracts, copies of advertising and clerk sheets.

§67.71.Requirements--Sponsoring Auctioneer.

(a) There must be a legitimate employee-employer relationship between an associate auctioneer and the sponsoring auctioneer or between the associate and an auction company operated by a licensed auctioneer that employs the sponsoring auctioneer.

(b) A sponsoring auctioneer must be on premises and directly supervising an associate auctioneer when the associate is bid calling.

(c) A sponsoring auctioneer is responsible for supervision of an associate auctioneer as he performs the items listed in Rule 67.72(c).

(d) An auctioneer who terminates his sponsorship of an associate auctioneer must:

(1) within thirty days notify the Department in writing; and

(2) provide signed documentation to the associate auctioneer showing:

(A) the beginning and ending date of the sponsorship;

(B) date and location of up to ten auctions bid called by the associate;

(C) items listed in Rule 67.72(c) that the associate has performed.

§67.72.Requirements--Associate Auctioneers.

(a) An associate auctioneer shall provide auction services only when under the supervision of the licensed Texas auctioneer whose name is on file with the Department as the associate's sponsoring auctioneer.

(b) When bid calling, an associate auctioneer must be under the direct on premises supervision of the sponsoring auctioneer

(c) In order to be eligible for licensure as an auctioneer without taking examination an associate auctioneer must participate in all aspects of the auction business involving the laws of this state, including but not limited to:

(1) appraising;

(2) inventorying;

(3) advertising;

(4) property make ready;

(5) site selection and preparation;

(6) lotting;

(7) registration;

(8) clerking;

(9) cashiering;

(10) bid-calling at least ten auctions;

(11) ring working;

(12) property check out;

(13) security;

(14) accounting; and

(15) managing an escrow account.

(d) An associate auctioneer must report any change of address to the department within 30 days.

(e) When a sponsoring auctioneer terminates his sponsorship of an associate auctioneer, the associate may not provide auction services until he has an agreement with a new sponsoring auctioneer whose name and signature are on file with the Department.

§67.80.Fees[ --Original License ].

(a) The application fee for an auctioneer license is $50.

(b) The application fee for an associate auctioneer license is $25.

(c) The annual application fee to renew an auctioneer license is $50.

(d) The annual application fee to renew an associate auctioneer license is $25.

(e) Late renewal fees for licenses issued under this chapter are provided under §60.83 of this title (relating to Late Renewal Fees).

(f) A $25 fee will be charged for issuing a duplicate license.

(g) A $50 fee will be charged for each examination.

(h) A $500 curriculum review fee will be assessed to all schools submitting their curriculum for review and approval by the department.

(i) The initial recovery fund fee is $100.

(j) all fees are non refundable.

§67.94.Sanctions--Revocation, Suspension, or Denial Because of a Criminal Conviction.

(a) Pursuant to Texas Occupations Code, Chapter 53 [ Civil Statutes, Article 6252-13c ], the commission [ commissioner ], after a hearing, may suspend, revoke, or deny an existing license, or disqualify a person from receiving a license, because that person has a felony or misdemeanor conviction that directly relates to the duties and responsibilities involved in performing the duties of an auctioneer. The commission [ commissioner ] may also, after hearing, suspend, revoke, or deny a license because of a person's felony probation revocation, parole revocation, or revocation of mandatory supervision.

(b) The department may initiate administrative action to deny a license based upon proof of a final order issued by another state if the offense against the other state's law or administrative rules would have been an offense against the Act or these rules if committed in Texas.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on August 4, 2006.

TRD-200604037

William H. Kuntz, Jr.

Executive Director

Texas Department of Licensing and Regulation

Earliest possible date of adoption: September 17, 2006

For further information, please call: (512) 463-6208


16 TAC §§67.41, 67.42, 67.60, 67.81 - 67.83, 67.90, 67.100 - 67.102

(Editor's note: The text of the following sections proposed for repeal will not be published. The sections may be examined in the offices of the Texas Department of Licensing and Regulation or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)

The repeal is proposed under Texas Occupations Code, Chapter 1802, and Texas Occupations Code, Chapter 51, which authorizes the Department to adopt rules as necessary to implement this chapter and any other law establishing a program regulated by the Department.

The statutory provisions affected by the repeal are those set forth in Texas Occupations Code, Chapter 1802 and Texas Occupations Code, Chapter 51. No other statutes, articles, or codes are affected by the proposed repeal.

§67.41.Education and Recovery Fund--Definitions.

§67.42.Education and Recovery Fund--Claims.

§67.60.Responsibilities of the Department.

§67.81.Fees--Renewal.

§67.82.Fees--Duplicate License.

§67.83.Fees--Examination.

§67.90.Sanctions--Administrative Sanctions/Penalties.

§67.100.Technical Requirements--General.

§67.101.Technical Requirements--Handling Funds.

§67.102.Technical Requirements--RecordKeeping.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on August 4, 2006.

TRD-200604036

William H. Kuntz, Jr.

Executive Director

Texas Department of Licensing and Regulation

Earliest possible date of adoption: September 17, 2006

For further information, please call: (512) 463-6208


Part 9. TEXAS LOTTERY COMMISSION

Chapter 402. CHARITABLE BINGO ADMINISTRATIVE RULES

Subchapter A. ADMINISTRATION

16 TAC §402.102

The Texas Lottery Commission proposes amendments to 16 TAC §402.102, relating to Bingo Advisory Committee (BAC). The purpose of the proposed amendments is to clarify the BAC's responsibility to report to the Commission and the basis for removal of a member of the BAC.

Kathy Pyka, Controller, has determined for each year of the first five years the proposed amendments are in effect there will be no fiscal implications to state or local government. There will be no impact on small or micro businesses, individuals, or local or state employment as a result of implementing the amended section.

William L. Atkins, Charitable Bingo Operations Director, Charitable Bingo Operations Division, has determined that for each of the first five years the amendments as proposed are in effect, the public benefit anticipated as a result of the proposed amendments is a clearer understanding of the perspective the BAC is to provide when reporting to the Commission, and a clearer understanding of the reasons for which a person can be removed from the BAC.

Written comments on the proposed amendments may be submitted to Sandra Joseph, Assistant General Counsel, Texas Lottery Commission, P.O. Box 16630, Austin, Texas 78761-6630, by facsimile, or via the agency's website online public comment form. The Commission will hold a public hearing on this proposal at 11:00 a.m. on Tuesday, August 29, 2006, at 611 E. 6th Street, Austin, Texas. Comments must be received within 30 days after publication of the proposed amendments in the Texas Register in order to be considered.

The amendments are proposed under Occupations Code, §2001.054 which authorizes the Commission to adopt rules to enforce and administer the Bingo Enabling Act.

The amendments implement Occupations Code, Chapter 2001.

§402.102.Bingo Advisory Committee.

(a) - (d) (No change.)

(e) Reports. The BAC [ Committee ] will report, at a minimum, quarterly to the Commission on the BAC's activities, and more frequently as deemed appropriate or [ and ] necessary by the BAC or the Commission [ presiding officer ]. Annually, the BAC will report to the commission the BAC's perspective on the state of charitable bingo in Texas with specific comments on [ recommendations for improvement, the status of ] the following areas [ relating to charitable bingo in Texas ]:

(1) gross receipts;

(2) net receipts;

(3) [ (2) ] charitable distributions;

(4) [ (3) ] expenses;

(5) [ (4) ] attendance; and[ , ]

(6) [ (5) ] any other area requested by the commission.

(f) - (j) (No change.)

(k) Removal. A member of the BAC may be removed if he/she represents an organization licensed by the Commission [ commission ] that is delinquent in payment of any prize fees or gross rental taxes for which a final jeopardy determination has been made by the Commission [ any liability to the state ] or if he/she represents an organization licensed by the Commission [ commission ] that has a license denied, revoked or suspended by the Commission [ commission ]. The decision by the Commission [ commission ] to remove a member of the BAC is final.

(l) (No change.)

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on August 2, 2006.

TRD-200604022

Kimberly L. Kiplin

General Counsel

Texas Lottery Commission

Earliest possible date of adoption: September 17, 2006

For further information, please call: (512) 344-5113