By: Smith (Senate Sponsor - Taylor) H.B. No. 2998
(In the Senate - Received from the House May 12, 2021;
May 13, 2021, read first time and referred to Committee on Business &
Commerce; May 22, 2021, reported favorably by the following vote:
Yeas 6, Nays 0; May 22, 2021, sent to printer.)
Click here to see the committee vote
A BILL TO BE ENTITLED
AN ACT
relating to the requirement that certain business entities obtain a
license from the Texas Real Estate Commission.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 1101.355, Occupations Code, is amended
by adding Subsections (d) and (e) to read as follows:
(d) Notwithstanding Subsection (c) or any other law, a
business entity is not required to be licensed under this chapter 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) a limited liability company as defined by
Section 101.001, Business Organizations Code; or
(B) an S corporation as defined by 26 U.S.C.
Section 1361;
(4) is registered with the commission; and
(5) is at least 51 percent owned by the license holder
on whose behalf the entity receives compensation.
(e) The commission shall adopt rules providing for the
registration of a business entity described by Subsection (d).
SECTION 2. This Act takes effect January 1, 2022.
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