Can a Texas licensed auctioneer perform public motor vehicle auctions?
Effective September 1, 2011, HB 2519 amends Section 1802.052(c) of the law and will provide some clarification on this issue. This amendment seeks to provide guidance to licensed auctioneers who wish to perform public auctions for motor vehicle dealers, but have been concerned they might be in violation of the Auctioneer law if the motor vehicle dealer was considered an ‘auction company’ that was not owned or operated by a Texas licensed auctioneer. Section 1802.001(4) of the law defines an ‘auction company’ as a person who engages in the business of arranging, managing, sponsoring or advertising or conducting auctions. Prior to September 1, 2011, a licensed auctioneer could only perform an auction for an ‘auction company’ if the ‘auction company’ was owned or operated by a Texas licensed auctioneer. Therefore, the performance of a public motor vehicle auction could place an auctioneer in violation of the law if the motor vehicle dealer was in the business of arranging auctions (or oth