87R12870 TYPED
By: Bonnen H.B. No. 2825
A BILL TO BE ENTITLED
AN ACT
relating to certain transactions involving real property located
near military bases.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 341, Finance Code, is amended by adding
Subchapter H to read as follows:
SUBCHAPTER H. DUTIES REGARDING CERTAIN REAL ESTATE LOANSNEAR
MILITARY BASES
Sec. 341.701. DEFINITIONS. In this subchapter:
(1) "Commission" means the Texas Military
Preparedness Commission.
(2) "Financial institution" means a bank, savings
association, or credit union.
Sec. 341.702. APPLICABILITY. This subchapter applies only
to a loan made by a financial institution for the purchase,
development, or renovation of real property that is not zoned or
intended to be used for residential use only.
Sec. 341.703. NOTICE AND REPORTING BY FINANCIAL
INSTITUTIONS. (a) Prior to approving an application for a loan for
real property located within 25 nautical miles of the boundaries of
a military base located in this state, a financial institution
shall determine if the applicant is a scrutinized company under
Section 2270.0001(9), Government Code.
(b) If the financial institution determines that the
applicant is a scrutinized company and the loan would be for the
purchase or lease of real property, the financial institution shall
promptly provide notice of that fact to the sellor or lessor of the
real property.
(c) Not later than December 31 of each year, a financial
institution shall submit a report to the commission that identifies
each loan made to a scrutinized company for real property located
within 25 nautical miles of the boundaries of a military base
located in this state.
(d) In making a determination under Subsection (a), a
financial institution may rely on the list maintained by the
comptroller under Section 2270.0201, Government Code.
(e) This section does not prohibit a financial institution
from approving an application for a loan submitted by or connected
to a scrutinized company.
SECTION 2. Chapter 2704, Insurance Code, is amended by
adding Subchapter D to read as follows:
SUBCHAPTER D. DUTIES REGARDING TITLE INSURANCE COVERING CERTAIN
AREAS NEAR MILITARY BASES
Sec. 2704.151. DEFINITIONS. In this subchapter,
"commission" means the Texas Military Preparedness Commission.
Sec. 2704.152. APPLICABILITY. This subchapter applies only
to a title insurance policy or contract issued by a title insurance
company for real property that is not zoned or intended to be used
for residential use only.
Sec. 2704.153. NOTICE AND REPORTING BY TITLE INSURANCE
COMPANIES. (a) Prior to approving an application for a title
insurance policy or contract in connection with real property
located within 25 nautical miles of the boundaries of a military
base located in this state, a title insurance company shall
determine if the applicant is a scrutinized company under Section
2270.0001(9), Government Code.
(b) If the title insurance company determines that the
applicant is a scrutinized company and the policy or contract would
be issued in connection with the purchase or lease of real property,
the title insurance company shall promptly provide notice of that
fact to the sellor or lessor of the real property.
(c) Not later than December 31 of each year, a title
insurance company shall submit a report to the commission that
identifies each title insurance policy or contract entered into
with a scrutinized company for real property located within 25
nautical miles of the boundaries of a military base located in this
state.
(d) In making a determination under Subsection (a), a title
insurance company may rely on the list maintained by the
comptroller under Section 2270.0201, Government Code.
(e) This section does not prohibit a title insurance company
from approving an application for a title insurance policy or
contract submitted by or connected to a scrutinized company.
SECTION 3. Subchapter C, Chapter 436, Government Code, is
amended by adding Section 436.1031 to read as follows:
Sec. 436.1031. INFORMATION REGARDING CERTAIN TRANSACTIONS
INVOLVING REAL PROPERTY NEAR MILITARY BASES. (a) The commission
shall include in its biennial report in Section 436.103 a list of
the financial institutions and title insurance companies that have,
during the two preceding years, reported a transaction to the
commission under Section 341.703(c), Finance Code, or Section
2704.153(c), Insurance Code, and the scrutinized company involved
in each transaction.
(b) Except as provided in Subsection (a), a report made to
the commission by a financial institution or a title insurance
company under Section 341.703(c), Finance Code, or Section
2704.153(c), Insurance Code, is confidential and not subject to
disclosure under Chapter 552.
SECTION 4. The duties imposed under Subchapter H, Chapter
341, Finance Code, as added by this Act and Subchapter D, Chapter
2704, Insurance Code, as added by this Act apply only to an
application for a loan or title insurance policy or contract
received by a bank, savings association, credit union, or title
insurance company on or after the effective date of this Act.
SECTION 5. 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, 2021.