| (a) An auctioneer must list his license number 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. (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. (d) A licensee may not knowingly use, or permit the use of, false bidders, cappers, or shills at any auction. (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; (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. (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. |
| Source Note: The provisions of this §67.70 adopted to be effective January 27, 1993, 18 TexReg 301; amended to be effective September 30, 1994, 19 TexReg 7272; amended to be effective December 1, 2006, 31 TexReg 9601 |
