87R20808 JES-D By: Smith H.B. No. 2998 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.