Texas Administrative Code › Title 16 - ECONOMIC REGULATION › Part 4 - TEXAS DEPARTMENT OF LICENSING AND REGULATION › Chapter 67 - AUCTIONEERS › Section 67.40 - Auctioneer Education and Recovery Fund

Current through Reg. 49, No. 28; July 12, 2024
(a) In each year in which the balance of the
				Auctioneer Education and Recovery Fund is less than $350,000 the department
				will determine the fee that shall be paid by all license holders into the
				Auctioneer 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) Applicants for an auctioneer license
				shall pay the initial recovery 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 $15,000 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 $30,000, the department shall prorate $30,000
				from the 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 Fund of claims
				against an auctioneer may not exceed $30,000. 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 department
				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 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%