BILL ANALYSIS Senate Research Center H.B. 2998 87R20808 JES-D By: Smith (Taylor) Business & Commerce 5/21/2021 Engrossed AUTHOR'S / SPONSOR'S STATEMENT OF INTENT H.B. 2998 amends current law relating to the requirement that certain business entities obtain a license from the Texas Real Estate Commission. RULEMAKING AUTHORITY Rulemaking authority is expressly granted to the Texas Real Estate Commission in SECTION 1 (Section 1101.355, Occupations Code) of this bill. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 1101.355, Occupations Code, by adding Subsections (d) and (e), as follows: (d) Provides that, notwithstanding Subsection (c) (relating to the requirement that a business entity that receives compensation on behalf of a license holder be licensed as a certain broker) or any other law, a business entity is not required to be licensed under Chapter 1101 (Real Estate Brokers and Sales Agents) if the business entity: (1) receives compensation on behalf of a broker or sales agent licensed under this chapter that is earned by the license holder while engaged in real estate brokerage; (2) performs no other acts of a broker; (3) is a limited liability company as defined by Section 101.001 (Definitions), Business Organizations Code or an S corporation as defined by 26 U.S.C. Section 1361; (4) is registered with the Texas Real Estate Commission (TREC); and (5) is at least 51 percent owned by the license holder on whose behalf the entity receives compensation. (e) Requires TREC to adopt rules providing for the registration of a business entity described by Subsection (d). SECTION 2. Effective date: January 1, 2022.
BILL ANALYSIS
Senate Research Center H.B. 2998
87R20808 JES-D By: Smith (Taylor)
Business & Commerce
5/21/2021
Engrossed
Senate Research Center
H.B. 2998
87R20808 JES-D
By: Smith (Taylor)
Business & Commerce
5/21/2021
Engrossed
AUTHOR'S / SPONSOR'S STATEMENT OF INTENT
H.B. 2998 amends current law relating to the requirement that certain business entities obtain a license from the Texas Real Estate Commission.
RULEMAKING AUTHORITY
Rulemaking authority is expressly granted to the Texas Real Estate Commission in SECTION 1 (Section 1101.355, Occupations Code) of this bill.
SECTION BY SECTION ANALYSIS
SECTION 1. Amends Section 1101.355, Occupations Code, by adding Subsections (d) and (e), as follows:
(d) Provides that, notwithstanding Subsection (c) (relating to the requirement that a business entity that receives compensation on behalf of a license holder be licensed as a certain broker) or any other law, a business entity is not required to be licensed under Chapter 1101 (Real Estate Brokers and Sales Agents) if the business entity:
(1) receives compensation on behalf of a broker or sales agent licensed under this chapter that is earned by the license holder while engaged in real estate brokerage;
(2) performs no other acts of a broker;
(3) is a limited liability company as defined by Section 101.001 (Definitions), Business Organizations Code or an S corporation as defined by 26 U.S.C. Section 1361;
(4) is registered with the Texas Real Estate Commission (TREC); and
(5) is at least 51 percent owned by the license holder on whose behalf the entity receives compensation.
(e) Requires TREC to adopt rules providing for the registration of a business entity described by Subsection (d).
SECTION 2. Effective date: January 1, 2022.