The Texas Department of Licensing & Regulation (TDLR) licenses, oversees, and disciplines various occupations, including auctioneers. As part of its licensing role, TDLR develops rules that govern the auctioneering profession.
An experienced occupational license defense attorney at Bertolino LLP can represent your interests in any proceedings that you may face before TDLR. We can review the licensure or disciplinary issues that your case involves and work to develop strategies to resolve those issues most effectively. When you are facing disciplinary proceedings, you will benefit from the services of a vocational license defense lawyer to protect your license and career. We can provide strong legal counsel to assist you throughout your disciplinary matter.
The Texas Commission of Licensing and Regulation recently adopted rules to implement House Bill (HB) 4416. The rules address subjects such as associate auctioneer employment, written contracts, property inventories, and the cap on claims against an auctioneer arising from a single auction. HB 4416 arose from TDLR’s study of the Auctioneers program. The new and amended rules went into effect on September 1, 2024.
Employment of Associate Auctioneers
- 67.21 is amended to remove the requirement that associate auctioneers be employed by licensed auctioneers. However, under §67.71, associate auctioneers must work under the direct supervision of a licensed auctioneer.
Claims Against Auctioneers Arising from a Single Auction
Under amendments to §67.40, if an auctioneer owes an aggrieved party more than $15,000 for claims related to a single auction, the auctioneer must pay any amount over $15,000. The total maximum payout from the recovery fund for claims arising from a single auction is $100,000. Damages of more than $100,000 must be paid by the auctioneer, to be prorated among all aggrieved parties. Furthermore, individuals who fail to repay TDLR for a payment made from the recovery fund can have their auctioneer or association auctioneer license revoked.
Auctioneer Standards of Practice: Contracts
- 67.70(b)(4) now states that auctioneers must have a complete written contract in place signed by both auctioneer and client before an auctioneer. Each contract for the services of an auctioneer must include certain information required by rule.
Before an auction occurs, the auctioneer and client must agree in writing to an itemized inventory of property on a specific form. Auctioneers must retain the itemized inventory of property along with other required forms from an auction.
Sanctions
- 67.90 Administrative Penalties and Sanctions is added as a new sanction. This section states that a violation of the law, rules, or a TDLR order is grounds for administrative penalties or sanctions. Administrative penalties in disciplinary proceedings can be as much as $5,000 per violation. Potential sanctions can include warning letters, probated license suspensions, full license suspensions, and license revocations.
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