84R4832 ADM-F
By: King of Parker H.B. No. 736
A BILL TO BE ENTITLED
AN ACT
relating to the treatment of a landman as an independent
contractor.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 201.077, Labor Code, is amended to read
as follows:
Sec. 201.077. SERVICE BY LANDMAN. (a) In this subtitle,
"employment" does not include service performed for a private
for-profit person by an individual as a landman if:
(1) the individual is engaged primarily in negotiating
for the acquisition or divestiture of mineral rights or negotiating
business agreements that provide for the exploration for or
development of minerals;
(2) substantially all remuneration, paid in cash or
otherwise, for the performance of the service is directly related
to the completion by the individual of the specific, contracted-for
tasks, rather than to the number of hours worked by the individual;
and
(3) the service performed by the individual is
performed under a written contract between the individual and the
person for whom the service is performed that provides that the
individual is to be treated as an independent contractor and not as
an employee with respect to the service provided under the
contract.
(b) A contract for a service described by Subsection (a)(1)
to be performed by an individual as a landman does not constitute
employment for purposes of this subtitle, and the landman shall be
considered an independent contractor, if:
(1) the contract specifically states that:
(A) the landman is working as an independent
contractor; and
(B) the landman's employer does not determine the
means or methods of the work being performed; and
(2) the landman's compensation for the contracted
service is directly related only to the performance of the service.
SECTION 2. Section 151.0048, Tax Code, is amended by adding
Subsection (b-2) to read as follows:
(b-2) "Real property service" does not include a service
listed under Subsection (a) if the service is performed by a
landman:
(1) whose contract specifically states that:
(A) the landman is working as an independent
contractor; and
(B) the landman's employer does not determine the
means or methods of the work being performed; and
(2) whose compensation for the contracted service is
directly related only to the performance of the service.
SECTION 3. The amendments made by this Act are a
clarification of existing law and do not imply that existing law may
be construed as inconsistent with the law as amended by this Act.
SECTION 4. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2015.