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A BILL TO BE ENTITLED
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AN ACT
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relating to land services performed by a landman. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 954, Occupations Code, is amended to |
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read as follows: |
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CHAPTER 954. LAND SERVICES FOR PETROLEUM, [AND] MINERAL, AND OTHER |
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ENERGY SOURCES [LAND SERVICES] |
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Sec. 954.001. DEFINITIONS. In this chapter: |
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(1) "Land services" means the performance or |
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supervision of one or more of the following activities: |
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(A) negotiating the acquisition or divestiture |
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of mineral rights or rights associated with other energy sources; |
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(B) negotiating business agreements or easements |
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that provide for the exploration for or development of minerals or |
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other energy sources; |
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(C) ascertaining ownership in mineral rights or |
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rights associated with other energy sources and related real |
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property through the research of public and private records; |
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(D) reviewing the status of title, curing title |
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defects, providing title due diligence, and otherwise reducing |
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title risk associated with the ownership, acquisition, or |
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divestiture of mineral rights, property associated with minerals, |
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or rights associated with other energy sources, excluding: |
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(i) administrative functions; |
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(ii) division order functions; and |
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(iii) lease analyst functions; |
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(E) managing rights or obligations derived from |
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ownership of interests in minerals or rights associated with other |
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energy sources; or |
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(F) using or pooling mineral interests or rights |
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associated with other energy sources. |
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(2) "Mineral" has the meaning assigned by Section |
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75.001, Property Code. The term includes oil, gas, related |
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hydrocarbons, coal, lignite, uranium, and substances classified as |
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base, industrial, precious, or strategic minerals. |
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(3) "Other energy source" means a natural resource |
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other than a mineral that is necessary to produce energy, including |
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geothermal, hydroelectric, nuclear, solar, and wind energy. |
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Sec. 954.002. EXCEPTION TO PRACTICE OF LAW. For the |
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purposes of the definition in Section 81.101, Government Code, the |
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"practice of law" does not include engaging in land services [acts |
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relating to the lease, purchase, sale, or transfer of a mineral or |
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mining interest in real property or an easement or other interest |
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associated with a mineral or mining interest in real property] if: |
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(1) the acts are performed by a person who does not |
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hold the person out as an attorney licensed to practice law in this |
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state or in another jurisdiction; and |
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(2) the person is not a licensed attorney. |
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SECTION 2. Section 1101.005, Occupations Code, is amended |
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to read as follows: |
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Sec. 1101.005. APPLICABILITY OF CHAPTER. This chapter |
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does not apply to: |
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(1) an attorney licensed in this state; |
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(2) an attorney-in-fact authorized under a power of |
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attorney to conduct not more than three real estate transactions |
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annually; |
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(3) a public official while engaged in official |
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duties; |
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(4) an auctioneer licensed under Chapter 1802 while |
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conducting the sale of real estate by auction if the auctioneer does |
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not perform another act of a broker; |
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(5) a person conducting a real estate transaction |
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under a court order or the authority of a will or written trust |
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instrument; |
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(6) a person employed by an owner in the sale of |
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structures and land on which structures are located if the |
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structures are erected by the owner in the course of the owner's |
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business; |
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(7) an on-site manager of an apartment complex; |
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(8) an owner or the owner's employee who leases the |
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owner's improved or unimproved real estate; or |
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(9) a transaction involving: |
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(A) the sale, lease, or transfer of a mineral or |
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mining interest in real property; |
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(B) the sale, lease, or transfer of a cemetery |
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lot; |
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(C) the lease or management of a hotel or motel; |
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[or] |
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(D) the sale of real property under a power of |
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sale conferred by a deed of trust or other contract lien; or |
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(E) the sale, lease, or transfer of an interest |
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in real property relating to another energy source, as defined by |
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Section 954.001. |
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SECTION 3. Section 1702.324(a), Occupations Code, is |
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amended to read as follows: |
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(a) For the purposes of this section, "landman" means an |
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individual who, in the course and scope of the individual's |
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business: |
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(1) acquires or manages petroleum or mineral |
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interests; [or] |
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(2) performs title or contract functions related to |
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the exploration, exploitation, or disposition of petroleum or |
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mineral interests; or |
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(3) otherwise engages in land services as defined by |
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Section 954.001. |
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SECTION 4. Section 171.1011(g-11), Tax Code, is amended to |
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read as follows: |
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(g-11) A taxable entity that is primarily engaged in the |
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business of performing landman services shall exclude from its |
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total revenue, to the extent included under Subsection (c)(1)(A), |
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(c)(2)(A), or (c)(3), subcontracting payments made by the taxable |
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entity to nonemployees for the performance of landman services on |
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behalf of the taxable entity. In this subsection, "landman |
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services" means: |
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(1) performing title searches for the purpose of |
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determining ownership of or curing title defects related to oil, |
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gas, other energy sources, or other related mineral or petroleum |
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interests; |
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(2) negotiating the acquisition or divestiture of |
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mineral rights for the purpose of the exploration, development, or |
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production of oil, gas, other energy sources, or other related |
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mineral or petroleum interests; or |
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(3) negotiating or managing the negotiation of |
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contracts or other agreements related to the ownership of mineral |
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interests for the exploration, exploitation, disposition, |
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development, or production of oil, gas, other energy sources, or |
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other related mineral or petroleum interests. |
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SECTION 5. The change in law made by this Act to Section |
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171.1011(g-11), Tax Code, applies only to a report originally due |
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on or after January 1, 2024. |
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SECTION 6. (a) Except as provided by Subsection (b) of this |
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section, this Act takes effect: |
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(1) immediately if this Act receives a vote of |
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two-thirds of all the members elected to each house, as provided by |
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Section 39, Article III, Texas Constitution; or |
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(2) September 1, 2023, if this Act does not receive the |
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vote necessary for immediate effect. |
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(b) Section 171.1011(g-11), Tax Code, as amended by this |
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Act, takes effect January 1, 2024. |