Texas 2021 - 87th Regular

Texas House Bill HB2825 Compare Versions

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1		-	87R12934 SRA-F
2		-	By: Bonnen, Morales of Maverick, Cyrier H.B. No. 2825
3		-	Substitute the following for H.B. No. 2825:
4		-	By: Buckley C.S.H.B. No. 2825
	1	+	87R12870 TYPED
	2	+	By: Bonnen H.B. No. 2825
5	3
6	4
7	5		A BILL TO BE ENTITLED
8	6		AN ACT
9		-	relating to reporting requirements for certain loan and title
10		-	insurance transactions involving foreign companies and real
11		-	property located near military bases.
	7	+	relating to certain transactions involving real property located
	8	+	near military bases.
12	9		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
13		-	SECTION 1. Subtitle Z, Title 3, Finance Code, is amended by
14		-	adding Chapter 282 to read as follows:
15		-	CHAPTER 282. CERTAIN LOANS FOR REAL PROPERTY NEAR MILITARY BASES
16		-	Sec. 282.001. DEFINITIONS. In this chapter:
	10	+	SECTION 1. Chapter 341, Finance Code, is amended by adding
	11	+	Subchapter H to read as follows:
	12	+	SUBCHAPTER H. DUTIES REGARDING CERTAIN REAL ESTATE LOANSNEAR
	13	+	MILITARY BASES
	14	+	Sec. 341.701. DEFINITIONS. In this subchapter:
17	15		(1) "Commission" means the Texas Military
18	16		Preparedness Commission.
19		-	(2) "Company" and "scrutinized company" have the
20		-	meanings assigned by Section 2270.0001, Government Code.
21		-	(3) "Financial institution" means:
22		-	(A) a bank as defined for any purpose by Section
23		-	201.002(a)(4), whether chartered under the laws of this state,
24		-	another state, the United States, or another country, including a
25		-	state savings bank;
26		-	(B) a savings and loan association chartered
27		-	under Chapter 62 or similar laws of another state;
28		-	(C) a federal savings and loan association,
29		-	federal savings bank, or federal credit union; or
30		-	(D) a credit union chartered under Chapter 122 or
31		-	similar laws of another state.
32		-	(4) "Reportable company" means a company described by
33		-	Section 282.003(a).
34		-	Sec. 282.002. APPLICABILITY. This chapter applies only to
35		-	a loan made by a financial institution for the purchase, lease,
36		-	development, or renovation of real property that:
37		-	(1) is located within 25 nautical miles of the
38		-	boundaries of a military base located in this state; and
39		-	(2) is not zoned or intended to be used for residential
40		-	use only.
41		-	Sec. 282.003. NOTICE AND REPORTING OF LOAN TRANSACTIONS
42		-	INVOLVING CERTAIN FOREIGN COMPANIES. (a) Before approving a loan
43		-	application to which this chapter applies, a financial institution
44		-	shall determine if the company applying for a loan is:
45		-	(1) a scrutinized company;
46		-	(2) owned by or the majority of stock or other
47		-	ownership interest of the company is held or controlled by:
48		-	(A) individuals who are citizens of China, Iran,
49		-	North Korea, or Russia; or
50		-	(B) a company or other entity, including a
51		-	governmental entity, that is owned or controlled by citizens of or
52		-	is directly controlled by the government of China, Iran, North
53		-	Korea, or Russia; or
54		-	(3) headquartered in China, Iran, North Korea, or
55		-	Russia.
56		-	(b) Subsection (a) applies regardless of whether:
57		-	(1) the reportable company's or its parent company's
58		-	securities are publicly traded; or
59		-	(2) the reportable company or its parent company is
60		-	listed on a public stock exchange as a Chinese, Iranian, North
61		-	Korean, or Russian company.
62		-	(c) In making a determination if a loan applicant is a
63		-	scrutinized company under Subsection (a), a financial institution
64		-	may rely on the list maintained by the comptroller under Section
65		-	2270.0201, Government Code.
66		-	(d) If a financial institution determines that the
67		-	applicant is a reportable company, the financial institution shall
68		-	promptly notify the seller or lessor of the real property of that
69		-	fact.
70		-	(e) Not later than December 31 of each year, each financial
	17	+	(2) "Financial institution" means a bank, savings
	18	+	association, or credit union.
	19	+	Sec. 341.702. APPLICABILITY. This subchapter applies only
	20	+	to a loan made by a financial institution for the purchase,
	21	+	development, or renovation of real property that is not zoned or
	22	+	intended to be used for residential use only.
	23	+	Sec. 341.703. NOTICE AND REPORTING BY FINANCIAL
	24	+	INSTITUTIONS. (a) Prior to approving an application for a loan for
	25	+	real property located within 25 nautical miles of the boundaries of
	26	+	a military base located in this state, a financial institution
	27	+	shall determine if the applicant is a scrutinized company under
	28	+	Section 2270.0001(9), Government Code.
	29	+	(b) If the financial institution determines that the
	30	+	applicant is a scrutinized company and the loan would be for the
	31	+	purchase or lease of real property, the financial institution shall
	32	+	promptly provide notice of that fact to the sellor or lessor of the
	33	+	real property.
	34	+	(c) Not later than December 31 of each year, a financial
71	35		institution shall submit a report to the commission that identifies
72		-	each loan to which this chapter applies that is made to a reportable
73		-	company.
74		-	(f) This section does not prohibit a financial institution
75		-	from approving an application for a loan submitted by a reportable
76		-	company.
77		-	SECTION 2. Subchapter C, Chapter 436, Government Code, is
78		-	amended by adding Section 436.1031 to read as follows:
79		-	Sec. 436.1031. TRANSACTION INFORMATION INVOLVING REAL
80		-	PROPERTY NEAR MILITARY BASES. (a) The commission shall include in
81		-	the biennial report required under Section 436.103:
82		-	(1) a list of the financial institutions and title
83		-	insurance companies that have, during each biennium, reported a
84		-	transaction to the commission under Section 282.003, Finance Code,
85		-	or Section 2704.153, Insurance Code; and
86		-	(2) the name of the reportable company involved in
87		-	each transaction.
88		-	(b) Information under this section is confidential and not
89		-	subject to disclosure under Chapter 552.
90		-	SECTION 3. Chapter 2704, Insurance Code, is amended by
	36	+	each loan made to a scrutinized company for real property located
	37	+	within 25 nautical miles of the boundaries of a military base
	38	+	located in this state.
	39	+	(d) In making a determination under Subsection (a), a
	40	+	financial institution may rely on the list maintained by the
	41	+	comptroller under Section 2270.0201, Government Code.
	42	+	(e) This section does not prohibit a financial institution
	43	+	from approving an application for a loan submitted by or connected
	44	+	to a scrutinized company.
	45	+	SECTION 2. Chapter 2704, Insurance Code, is amended by
91	46		adding Subchapter D to read as follows:
92		-	SUBCHAPTER D. TITLE INSURANCE FOR REAL PROPERTY NEAR MILITARY BASES
93		-	Sec. 2704.151. DEFINITIONS. In this subchapter:
94		-	(1) "Commission" means the Texas Military
95		-	Preparedness Commission.
96		-	(2) "Company" and "scrutinized company" have the
97		-	meanings assigned by Section 2270.0001, Government Code.
98		-	(3) "Reportable company" means a company described by
99		-	Section 2704.153(a).
	47	+	SUBCHAPTER D. DUTIES REGARDING TITLE INSURANCE COVERING CERTAIN
	48	+	AREAS NEAR MILITARY BASES
	49	+	Sec. 2704.151. DEFINITIONS. In this subchapter,
	50	+	"commission" means the Texas Military Preparedness Commission.
100	51		Sec. 2704.152. APPLICABILITY. This subchapter applies only
101	52		to a title insurance policy or contract issued by a title insurance
102		-	company for real property that:
103		-	(1) is located within 25 nautical miles of the
104		-	boundaries of a military base located in this state; and
105		-	(2) is not zoned or intended to be used for residential
106		-	use only.
107		-	Sec. 2704.153. NOTICE AND REPORTING OF POLICY AND CONTRACTS
108		-	INVOLVING CERTAIN FOREIGN COMPANIES. (a) Before approving the
109		-	policy or contract application to which this subchapter applies, a
110		-	title insurance company shall determine if the applicant for a
111		-	title insurance policy or contract is:
112		-	(1) a scrutinized company;
113		-	(2) owned by or the majority of stock or other
114		-	ownership interest of the company is held or controlled by:
115		-	(A) individuals who are citizens of China, Iran,
116		-	North Korea, or Russia; or
117		-	(B) a company or other entity, including a
118		-	governmental entity, that is owned or controlled by citizens of or
119		-	is directly controlled by the government of China, Iran, North
120		-	Korea, or Russia; or
121		-	(3) headquartered in China, Iran, North Korea, or
122		-	Russia.
123		-	(b) Subsection (a) applies regardless of whether:
124		-	(1) the reportable company's or its parent company's
125		-	securities are publicly traded; or
126		-	(2) the reportable company or its parent company is
127		-	listed on a public stock exchange as a Chinese, Iranian, North
128		-	Korean, or Russian company.
129		-	(c) In making a determination if a policy or contract
130		-	applicant is a scrutinized company under Subsection (a), a title
	53	+	company for real property that is not zoned or intended to be used
	54	+	for residential use only.
	55	+	Sec. 2704.153. NOTICE AND REPORTING BY TITLE INSURANCE
	56	+	COMPANIES. (a) Prior to approving an application for a title
	57	+	insurance policy or contract in connection with real property
	58	+	located within 25 nautical miles of the boundaries of a military
	59	+	base located in this state, a title insurance company shall
	60	+	determine if the applicant is a scrutinized company under Section
	61	+	2270.0001(9), Government Code.
	62	+	(b) If the title insurance company determines that the
	63	+	applicant is a scrutinized company and the policy or contract would
	64	+	be issued in connection with the purchase or lease of real property,
	65	+	the title insurance company shall promptly provide notice of that
	66	+	fact to the sellor or lessor of the real property.
	67	+	(c) Not later than December 31 of each year, a title
	68	+	insurance company shall submit a report to the commission that
	69	+	identifies each title insurance policy or contract entered into
	70	+	with a scrutinized company for real property located within 25
	71	+	nautical miles of the boundaries of a military base located in this
	72	+	state.
	73	+	(d) In making a determination under Subsection (a), a title
131	74		insurance company may rely on the list maintained by the
132	75		comptroller under Section 2270.0201, Government Code.
133		-	(d) If a title insurance company determines that the policy
134		-	or contract applicant is a reportable company, the title insurance
135		-	company shall promptly notify the seller or lessor of the real
136		-	property of that fact.
137		-	(e) Not later than December 31 of each year, each title
138		-	insurance company shall submit a report to the commission that
139		-	identifies each title insurance policy or contract to which this
140		-	subchapter applies that is made to a reportable company.
141		-	(f) This section does not prohibit a title insurance company
	76	+	(e) This section does not prohibit a title insurance company
142	77		from approving an application for a title insurance policy or
143		-	contract submitted by a reportable company.
144		-	SECTION 4. Chapter 282, Finance Code, and Subchapter D,
145		-	Chapter 2704, Insurance Code, as added by this Act, apply only to an
	78	+	contract submitted by or connected to a scrutinized company.
	79	+	SECTION 3. Subchapter C, Chapter 436, Government Code, is
	80	+	amended by adding Section 436.1031 to read as follows:
	81	+	Sec. 436.1031. INFORMATION REGARDING CERTAIN TRANSACTIONS
	82	+	INVOLVING REAL PROPERTY NEAR MILITARY BASES. (a) The commission
	83	+	shall include in its biennial report in Section 436.103 a list of
	84	+	the financial institutions and title insurance companies that have,
	85	+	during the two preceding years, reported a transaction to the
	86	+	commission under Section 341.703(c), Finance Code, or Section
	87	+	2704.153(c), Insurance Code, and the scrutinized company involved
	88	+	in each transaction.
	89	+	(b) Except as provided in Subsection (a), a report made to
	90	+	the commission by a financial institution or a title insurance
	91	+	company under Section 341.703(c), Finance Code, or Section
	92	+	2704.153(c), Insurance Code, is confidential and not subject to
	93	+	disclosure under Chapter 552.
	94	+	SECTION 4. The duties imposed under Subchapter H, Chapter
	95	+	341, Finance Code, as added by this Act and Subchapter D, Chapter
	96	+	2704, Insurance Code, as added by this Act apply only to an
146	97		application for a loan or title insurance policy or contract
147		-	submitted on or after the effective date of this Act.
148		-	SECTION 5. This Act takes effect September 1, 2021.
	98	+	received by a bank, savings association, credit union, or title
	99	+	insurance company on or after the effective date of this Act.
	100	+	SECTION 5. This Act takes effect immediately if it receives
	101	+	a vote of two-thirds of all the members elected to each house, as
	102	+	provided by Section 39, Article III, Texas Constitution. If this
	103	+	Act does not receive the vote necessary for immediate effect, this
	104	+	Act takes effect September 1, 2021.