Bill Text: TX SB604 | 2023-2024 | 88th Legislature | Enrolled


Bill Title: Relating to land services performed by a landman.

Spectrum: Partisan Bill (Republican 2-0)

Status: (Passed) 2023-05-24 - See remarks for effective date [SB604 Detail]

Download: Texas-2023-SB604-Enrolled.html
 
 
  S.B. No. 604
 
 
 
 
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":
                     (A)  means the performance or supervision of one
  or more of the following activities:
                           (i)  negotiating the acquisition or
  divestiture of mineral rights or rights associated with other
  energy sources;
                           (ii)  negotiating business agreements or
  easements to provide for the exploration for or development of
  minerals or other energy sources;
                           (iii)  ascertaining ownership in mineral
  rights or rights associated with other energy sources and related
  real property through the research of public and private records;
                           (iv)  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:
                                 (a)  administrative functions;
                                 (b)  division order functions; and
                                 (c)  lease analyst functions;
                           (v)  managing rights or obligations derived
  from ownership of interests in minerals or rights associated with
  other energy sources; or
                           (vi)  using or pooling mineral interests or
  rights associated with other energy sources; and
                     (B)  does not include determining, examining, or
  reviewing the status of title in connection with transactions that
  are primarily for:
                           (i)  the sale, purchase, or encumbrance of
  the surface of the land unassociated with mineral rights or other
  energy sources; or
                           (ii)  the mortgage of real property used or
  intended to be used primarily for residential purposes.
               (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 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, divests, 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 3.  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 4.  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 5.  (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.
 
 
 
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
         I hereby certify that S.B. No. 604 passed the Senate on
  April 12, 2023, by the following vote: Yeas 31, Nays 0; and that
  the Senate concurred in House amendment on May 11, 2023, by the
  following vote: Yeas 30, Nays 0.
 
 
  ______________________________
  Secretary of the Senate    
 
         I hereby certify that S.B. No. 604 passed the House, with
  amendment, on May 8, 2023, by the following vote: Yeas 129,
  Nays 13, one present not voting.
 
 
  ______________________________
  Chief Clerk of the House   
 
 
 
  Approved:
 
  ______________________________ 
              Date
 
 
  ______________________________ 
            Governor
feedback