88R20767 TSS-F
 
  By: Hefner H.B. No. 1915
 
  Substitute the following for H.B. No. 1915:
 
  By:  Goldman C.S.H.B. No. 1915
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to land services performed by a landman.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Chapter 954, Occupations Code, is amended to
  read as follows:
  CHAPTER 954. LAND SERVICES FOR PETROLEUM, [AND] MINERAL, AND OTHER
  ENERGY SOURCES [LAND SERVICES]
         Sec. 954.001.  DEFINITIONS. In this chapter: 
               (1)  "Land services" means the performance or
  supervision of one or more of the following activities:
                     (A)  negotiating the acquisition or divestiture
  of mineral rights or rights associated with other energy sources;
                     (B)  negotiating business agreements or easements
  that provide for the exploration for or development of minerals or
  other energy sources;
                     (C)  ascertaining ownership in mineral rights or
  rights associated with other energy sources and related real
  property through the research of public and private records;
                     (D)  reviewing the status of title, curing title
  defects, providing title due diligence, and otherwise reducing
  title risk associated with the ownership, acquisition, or
  divestiture of mineral rights, property associated with minerals,
  or rights associated with other energy sources, excluding:
                           (i)  administrative functions;
                           (ii)  division order functions; and
                           (iii)  lease analyst functions;
                     (E)  managing rights or obligations derived from
  ownership of interests in minerals or rights associated with other
  energy sources; or
                     (F)  using or pooling mineral interests or rights
  associated with other energy sources.
               (2)  "Mineral" has the meaning assigned by Section
  75.001, Property Code. The term includes oil, gas, related
  hydrocarbons, coal, lignite, uranium, and substances classified as
  base, industrial, precious, or strategic minerals.
               (3)  "Other energy source" means a natural resource
  other than a mineral that is necessary to produce energy, including
  geothermal, hydroelectric, nuclear, solar, and wind energy.
         Sec. 954.002.  EXCEPTION TO PRACTICE OF LAW. For the
  purposes of the definition in Section 81.101, Government Code, the
  "practice of law" does not include engaging in land services [acts
  relating to the lease, purchase, sale, or transfer of a mineral or
  mining interest in real property or an easement or other interest
  associated with a mineral or mining interest in real property] if:
               (1)  the acts are performed by a person who does not
  hold the person out as an attorney licensed to practice law in this
  state or in another jurisdiction; and
               (2)  the person is not a licensed attorney.
         SECTION 2.  Section 1101.005, Occupations Code, is amended
  to read as follows:
         Sec. 1101.005.  APPLICABILITY OF CHAPTER.  This chapter
  does not apply to:
               (1)  an attorney licensed in this state;
               (2)  an attorney-in-fact authorized under a power of
  attorney to conduct not more than three real estate transactions
  annually;
               (3)  a public official while engaged in official
  duties;
               (4)  an auctioneer licensed under Chapter 1802 while
  conducting the sale of real estate by auction if the auctioneer does
  not perform another act of a broker;
               (5)  a person conducting a real estate transaction
  under a court order or the authority of a will or written trust
  instrument;
               (6)  a person employed by an owner in the sale of
  structures and land on which structures are located if the
  structures are erected by the owner in the course of the owner's
  business;
               (7)  an on-site manager of an apartment complex;
               (8)  an owner or the owner's employee who leases the
  owner's improved or unimproved real estate; or
               (9)  a transaction involving:
                     (A)  the sale, lease, or transfer of a mineral or
  mining interest in real property;
                     (B)  the sale, lease, or transfer of a cemetery
  lot;
                     (C)  the lease or management of a hotel or motel;
  [or]
                     (D)  the sale of real property under a power of
  sale conferred by a deed of trust or other contract lien; or
                     (E)  the sale, lease, or transfer of an interest
  in real property relating to another energy source, as defined by
  Section 954.001.
         SECTION 3.  Section 1702.324(a), Occupations Code, is
  amended to read as follows:
         (a)  For the purposes of this section, "landman" means an
  individual who, in the course and scope of the individual's
  business:
               (1)  acquires or manages petroleum or mineral
  interests; [or]
               (2)  performs title or contract functions related to
  the exploration, exploitation, or disposition of petroleum or
  mineral interests; or
               (3)  otherwise engages in land services as defined by
  Section 954.001.
         SECTION 4.  Section 171.1011(g-11), Tax Code, is amended to
  read as follows:
         (g-11)  A taxable entity that is primarily engaged in the
  business of performing landman services shall exclude from its
  total revenue, to the extent included under Subsection (c)(1)(A),
  (c)(2)(A), or (c)(3), subcontracting payments made by the taxable
  entity to nonemployees for the performance of landman services on
  behalf of the taxable entity.  In this subsection, "landman
  services" means:
               (1)  performing title searches for the purpose of
  determining ownership of or curing title defects related to oil,
  gas, other energy sources, or other related mineral or petroleum
  interests;
               (2)  negotiating the acquisition or divestiture of
  mineral rights for the purpose of the exploration, development, or
  production of oil, gas, other energy sources, or other related
  mineral or petroleum interests; or
               (3)  negotiating or managing the negotiation of
  contracts or other agreements related to the ownership of mineral
  interests for the exploration, exploitation, disposition,
  development, or production of oil, gas, other energy sources, or
  other related mineral or petroleum interests.
         SECTION 5.  The change in law made by this Act to Section
  171.1011(g-11), Tax Code, applies only to a report originally due
  on or after January 1, 2024.
         SECTION 6.  (a)  Except as provided by Subsection (b) of this
  section, this Act takes effect:
               (1)  immediately if this Act receives a vote of
  two-thirds of all the members elected to each house, as provided by
  Section 39, Article III, Texas Constitution; or
               (2)  September 1, 2023, if this Act does not receive the
  vote necessary for immediate effect.
         (b)  Section 171.1011(g-11), Tax Code, as amended by this
  Act, takes effect January 1, 2024.