Texas 2023 - 88th Regular

Texas House Bill HB1915 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New	Differences
1	1	88R20767 TSS-F
2	2	By: Hefner H.B. No. 1915
3	3	Substitute the following for H.B. No. 1915:
4	4	By: Goldman C.S.H.B. No. 1915
5	5
6	6
7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to land services performed by a landman.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Chapter 954, Occupations Code, is amended to
12	12	read as follows:
13	13	CHAPTER 954. LAND SERVICES FOR PETROLEUM, [AND] MINERAL, AND OTHER
14	14	ENERGY SOURCES [LAND SERVICES]
15	15	Sec. 954.001. DEFINITIONS. In this chapter:
16	16	(1) "Land services" means the performance or
17	17	supervision of one or more of the following activities:
18	18	(A) negotiating the acquisition or divestiture
19	19	of mineral rights or rights associated with other energy sources;
20	20	(B) negotiating business agreements or easements
21	21	that provide for the exploration for or development of minerals or
22	22	other energy sources;
23	23	(C) ascertaining ownership in mineral rights or
24	24	rights associated with other energy sources and related real
25	25	property through the research of public and private records;
26	26	(D) reviewing the status of title, curing title
27	27	defects, providing title due diligence, and otherwise reducing
28	28	title risk associated with the ownership, acquisition, or
29	29	divestiture of mineral rights, property associated with minerals,
30	30	or rights associated with other energy sources, excluding:
31	31	(i) administrative functions;
32	32	(ii) division order functions; and
33	33	(iii) lease analyst functions;
34	34	(E) managing rights or obligations derived from
35	35	ownership of interests in minerals or rights associated with other
36	36	energy sources; or
37	37	(F) using or pooling mineral interests or rights
38	38	associated with other energy sources.
39	39	(2) "Mineral" has the meaning assigned by Section
40	40	75.001, Property Code. The term includes oil, gas, related
41	41	hydrocarbons, coal, lignite, uranium, and substances classified as
42	42	base, industrial, precious, or strategic minerals.
43	43	(3) "Other energy source" means a natural resource
44	44	other than a mineral that is necessary to produce energy, including
45	45	geothermal, hydroelectric, nuclear, solar, and wind energy.
46	46	Sec. 954.002. EXCEPTION TO PRACTICE OF LAW. For the
47	47	purposes of the definition in Section 81.101, Government Code, the
48	48	"practice of law" does not include engaging in land services [acts
49	49	relating to the lease, purchase, sale, or transfer of a mineral or
50	50	mining interest in real property or an easement or other interest
51	51	associated with a mineral or mining interest in real property] if:
52	52	(1) the acts are performed by a person who does not
53	53	hold the person out as an attorney licensed to practice law in this
54	54	state or in another jurisdiction; and
55	55	(2) the person is not a licensed attorney.
56	56	SECTION 2. Section 1101.005, Occupations Code, is amended
57	57	to read as follows:
58	58	Sec. 1101.005. APPLICABILITY OF CHAPTER. This chapter
59	59	does not apply to:
60	60	(1) an attorney licensed in this state;
61	61	(2) an attorney-in-fact authorized under a power of
62	62	attorney to conduct not more than three real estate transactions
63	63	annually;
64	64	(3) a public official while engaged in official
65	65	duties;
66	66	(4) an auctioneer licensed under Chapter 1802 while
67	67	conducting the sale of real estate by auction if the auctioneer does
68	68	not perform another act of a broker;
69	69	(5) a person conducting a real estate transaction
70	70	under a court order or the authority of a will or written trust
71	71	instrument;
72	72	(6) a person employed by an owner in the sale of
73	73	structures and land on which structures are located if the
74	74	structures are erected by the owner in the course of the owner's
75	75	business;
76	76	(7) an on-site manager of an apartment complex;
77	77	(8) an owner or the owner's employee who leases the
78	78	owner's improved or unimproved real estate; or
79	79	(9) a transaction involving:
80	80	(A) the sale, lease, or transfer of a mineral or
81	81	mining interest in real property;
82	82	(B) the sale, lease, or transfer of a cemetery
83	83	lot;
84	84	(C) the lease or management of a hotel or motel;
85	85	[or]
86	86	(D) the sale of real property under a power of
87	87	sale conferred by a deed of trust or other contract lien; or
88	88	(E) the sale, lease, or transfer of an interest
89	89	in real property relating to another energy source, as defined by
90	90	Section 954.001.
91	91	SECTION 3. Section 1702.324(a), Occupations Code, is
92	92	amended to read as follows:
93	93	(a) For the purposes of this section, "landman" means an
94	94	individual who, in the course and scope of the individual's
95	95	business:
96	96	(1) acquires or manages petroleum or mineral
97	97	interests; [or]
98	98	(2) performs title or contract functions related to
99	99	the exploration, exploitation, or disposition of petroleum or
100	100	mineral interests; or
101	101	(3) otherwise engages in land services as defined by
102	102	Section 954.001.
103	103	SECTION 4. Section 171.1011(g-11), Tax Code, is amended to
104	104	read as follows:
105	105	(g-11) A taxable entity that is primarily engaged in the
106	106	business of performing landman services shall exclude from its
107	107	total revenue, to the extent included under Subsection (c)(1)(A),
108	108	(c)(2)(A), or (c)(3), subcontracting payments made by the taxable
109	109	entity to nonemployees for the performance of landman services on
110	110	behalf of the taxable entity. In this subsection, "landman
111	111	services" means:
112	112	(1) performing title searches for the purpose of
113	113	determining ownership of or curing title defects related to oil,
114	114	gas, other energy sources, or other related mineral or petroleum
115	115	interests;
116	116	(2) negotiating the acquisition or divestiture of
117	117	mineral rights for the purpose of the exploration, development, or
118	118	production of oil, gas, other energy sources, or other related
119	119	mineral or petroleum interests; or
120	120	(3) negotiating or managing the negotiation of
121	121	contracts or other agreements related to the ownership of mineral
122	122	interests for the exploration, exploitation, disposition,
123	123	development, or production of oil, gas, other energy sources, or
124	124	other related mineral or petroleum interests.
125	125	SECTION 5. The change in law made by this Act to Section
126	126	171.1011(g-11), Tax Code, applies only to a report originally due
127	127	on or after January 1, 2024.
128	128	SECTION 6. (a) Except as provided by Subsection (b) of this
129	129	section, this Act takes effect:
130	130	(1) immediately if this Act receives a vote of
131	131	two-thirds of all the members elected to each house, as provided by
132	132	Section 39, Article III, Texas Constitution; or
133	133	(2) September 1, 2023, if this Act does not receive the
134	134	vote necessary for immediate effect.
135	135	(b) Section 171.1011(g-11), Tax Code, as amended by this
136	136	Act, takes effect January 1, 2024.