88R7490 DRS-D
By: Jetton H.B. No. 2788
A BILL TO BE ENTITLED
AN ACT
relating to the purchase of or acquisition of title to real property
by certain aliens or foreign entities; creating a criminal offense.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 5.005, Property Code, is amended to read
as follows:
Sec. 5.005. ALIENS. Except as provided by Subchapter H, an
[An] alien has the same real and personal property rights as a
United States citizen.
SECTION 2. Chapter 5, Property Code, is amended by adding
Subchapter H to read as follows:
SUBCHAPTER H. PURCHASE OF OR ACQUISITION OF TITLE TO REAL PROPERTY
BY CERTAIN FOREIGN INDIVIDUALS OR ENTITIES
Sec. 5.251. DEFINITIONS. In this subchapter:
(1) "Company" means a sole proprietorship,
organization, association, corporation, partnership, joint
venture, limited partnership, limited liability partnership, or
limited liability company, including a wholly owned subsidiary,
majority-owned subsidiary, parent company, or affiliate of those
entities or business associations, that exists to make a profit.
(2) "Designated country" means a country designated by
the governor under Section 5.253.
Sec. 5.252. PROHIBITION ON PURCHASE OF OR ACQUISITION OF
TITLE TO REAL PROPERTY. Notwithstanding any other law, the
following may not purchase or otherwise acquire title to real
property in this state:
(1) a governmental entity of a designated country;
(2) a company or other entity that is:
(A) headquartered in a designated country;
(B) directly or indirectly held or controlled by
the government of a designated country; or
(C) owned by or the majority of stock or other
ownership interest of which is held or controlled by individuals
described by Subdivision (4);
(3) a company or other entity that is owned by or the
majority of stock or other ownership interest of which is held or
controlled by a company or entity described by Subdivision (2); or
(4) an individual citizen of a designated country who
is:
(A) a government official or officer of the
military forces of the country;
(B) a member of the governing body of or officer
of:
(i) a company or other entity described by
Subdivision (2); or
(ii) the governing political party of the
country;
(C) determined by a United States intelligence or
law enforcement agency to be closely tied to an individual or entity
described by this section; or
(D) related within the first degree by
consanguinity or affinity, as determined under Chapter 573,
Government Code, to an individual described by this section.
Sec. 5.253. DESIGNATION OF COUNTRY AS SUBJECT TO
PROHIBITION ON PURCHASE OF OR ACQUISITION OF TITLE TO REAL
PROPERTY. (a) The governor, after consultation with the public
safety director of the Department of Public Safety, may designate a
country of which a governmental entity, company or other entity, or
citizen shall be subject to this subchapter.
(b) The governor shall consult the Homeland Security
Council established under Subchapter B, Chapter 421, Government
Code, for purposes of making a designation under this section.
Sec. 5.254. INVESTIGATION BY COMPTROLLER; LAW ENFORCEMENT
REFERRAL. (a) The comptroller of public accounts shall establish
procedures to examine a transfer of real property and determine
whether an investigation of a possible violation of this subchapter
is warranted.
(b) If the comptroller determines that an investigation of a
transfer of real property is warranted under this section, the
comptroller:
(1) shall investigate the transfer of real property
and determine whether a violation of this subchapter occurred; and
(2) may refer the matter to the appropriate local,
state, or federal law enforcement agency.
Sec. 5.255. OFFENSE; PENALTY. (a) A person commits an
offense if the person:
(1) is an individual citizen of a designated country
described by Section 5.252(4); and
(2) intentionally or knowingly purchases or otherwise
acquires title to real property in this state.
(b) An offense under Subsection (a) is a state jail felony.
(c) A company or entity that the comptroller determines
under Section 5.254(b) to have violated this subchapter shall:
(1) pay to this state a fine equal to the greater of:
(A) $250,000; or
(B) 50 percent of the market value of the real
property that is the subject of the violation; and
(2) forfeit to this state the real property that is the
subject of the violation.
Sec. 5.256. STATE MANAGEMENT OF FORFEITED REAL PROPERTY.
Real property forfeited to the state under Section 5.255 shall be
owned by this state and managed by the General Land Office.
SECTION 3. As soon as practicable after the effective date
of this Act, the comptroller shall adopt rules for the
implementation of Subchapter H, Chapter 5, Property Code, as added
by this Act.
SECTION 4. The changes in law made by this Act apply only to
the purchase of or other acquisition of title to real property on or
after the effective date of this Act. The purchase of or other
acquisition of title to real property before the effective date of
this Act is governed by the law in effect immediately before the
effective date of this Act, and that law is continued in effect for
that purpose.
SECTION 5. This Act takes effect September 1, 2023.