| 1 | | - | By: Smith (Senate Sponsor - Taylor) H.B. No. 2998 |
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| 2 | | - | (In the Senate - Received from the House May 12, 2021; |
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| 3 | | - | May 13, 2021, read first time and referred to Committee on Business & |
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| 4 | | - | Commerce; May 22, 2021, reported favorably by the following vote: |
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| 5 | | - | Yeas 6, Nays 0; May 22, 2021, sent to printer.) |
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| 6 | | - | Click here to see the committee vote |
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| 1 | + | 87R20808 JES-D |
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| 2 | + | By: Smith H.B. No. 2998 |
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| 7 | 3 | | |
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| 8 | 4 | | |
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| 9 | 5 | | A BILL TO BE ENTITLED |
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| 10 | 6 | | AN ACT |
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| 11 | 7 | | relating to the requirement that certain business entities obtain a |
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| 12 | 8 | | license from the Texas Real Estate Commission. |
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| 13 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 14 | 10 | | SECTION 1. Section 1101.355, Occupations Code, is amended |
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| 15 | 11 | | by adding Subsections (d) and (e) to read as follows: |
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| 16 | 12 | | (d) Notwithstanding Subsection (c) or any other law, a |
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| 17 | 13 | | business entity is not required to be licensed under this chapter if |
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| 18 | 14 | | the business entity: |
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| 19 | 15 | | (1) receives compensation on behalf of a broker or |
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| 20 | 16 | | sales agent licensed under this chapter that is earned by the |
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| 21 | 17 | | license holder while engaged in real estate brokerage; |
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| 22 | 18 | | (2) performs no other acts of a broker; |
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| 23 | 19 | | (3) is: |
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| 24 | 20 | | (A) a limited liability company as defined by |
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| 25 | 21 | | Section 101.001, Business Organizations Code; or |
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| 26 | 22 | | (B) an S corporation as defined by 26 U.S.C. |
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| 27 | 23 | | Section 1361; |
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| 28 | 24 | | (4) is registered with the commission; and |
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| 29 | 25 | | (5) is at least 51 percent owned by the license holder |
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| 30 | 26 | | on whose behalf the entity receives compensation. |
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| 31 | 27 | | (e) The commission shall adopt rules providing for the |
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| 32 | 28 | | registration of a business entity described by Subsection (d). |
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| 33 | 29 | | SECTION 2. This Act takes effect January 1, 2022. |
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