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.