| 1 | 1 | | By: Spiller H.B. No. 4006 |
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| 2 | 2 | | |
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| 3 | 3 | | |
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| 4 | 4 | | A BILL TO BE ENTITLED |
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| 5 | 5 | | AN ACT |
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| 6 | 6 | | relating to the purchase of or acquisition of title to real property |
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| 7 | 7 | | by certain foreign entities. |
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| 8 | 8 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 9 | 9 | | SECTION 1. Section 5.005, Property Code, is amended to read |
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| 10 | 10 | | as follows: |
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| 11 | 11 | | Sec. 5.005. ALIENS. Except as provided by Subchapter H, an |
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| 12 | 12 | | [An] alien has the same real and personal property rights as a |
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| 13 | 13 | | United States citizen. |
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| 14 | 14 | | SECTION 2. Chapter 5, Property Code, is amended by adding |
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| 15 | 15 | | Subchapter H to read as follows: |
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| 16 | 16 | | SUBCHAPTER H. PURCHASE OF OR ACQUISITION OF TITLE TO REAL |
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| 17 | 17 | | PROPERTY BY CERTAIN FOREIGN ENTITIES |
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| 18 | 18 | | Sec. 5.251. PROHIBITION ON PURCHASE OF OR ACQUISITION OF |
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| 19 | 19 | | TITLE TO REAL PROPERTY. Notwithstanding any other law, the |
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| 20 | 20 | | following may not purchase or otherwise acquire title to real |
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| 21 | 21 | | property in this state: |
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| 22 | 22 | | (1) a governmental entity of China, Iran, North Korea, |
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| 23 | 23 | | or Russia; |
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| 24 | 24 | | (2) a company or other entity that is: |
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| 25 | 25 | | (A) headquartered in China, Iran, North Korea, or |
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| 26 | 26 | | Russia; |
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| 27 | 27 | | (B) directly or indirectly held or controlled by |
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| 28 | 28 | | the government of China, Iran, North Korea, or Russia; or |
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| 29 | 29 | | (C) owned by or the majority of stock or other |
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| 30 | 30 | | ownership interest of which is held or controlled by entities who |
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| 31 | 31 | | are citizens of China, Iran, North Korea, or Russia; |
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| 32 | 32 | | (3) a company or other entity that is owned by or the |
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| 33 | 33 | | majority of stock or other ownership interest of which is held or |
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| 34 | 34 | | controlled by a company or entity described by Subdivision (2). |
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| 35 | 35 | | Sec. 5.252. ATTORNEY GENERAL ENFORCEMENT. (a) If the |
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| 36 | 36 | | attorney general has reason to believe that an entity has purchased |
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| 37 | 37 | | or otherwise acquired title to real property in violation of |
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| 38 | 38 | | Section 5.251, the attorney general may bring an action to enforce |
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| 39 | 39 | | this subchapter in a district court in the county where all or part |
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| 40 | 40 | | of the real property that is the subject of the violation is |
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| 41 | 41 | | located. |
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| 42 | 42 | | (b) The attorney general shall record notice of an action |
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| 43 | 43 | | brought under Subsection (a) in the real property records of each |
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| 44 | 44 | | county where any part of the real property subject to the action is |
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| 45 | 45 | | located. |
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| 46 | 46 | | (c) If the district court finds that the real property |
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| 47 | 47 | | subject to an action brought under Subsection (a) was purchased or |
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| 48 | 48 | | otherwise acquired by an entity in violation of Section 5.251, the |
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| 49 | 49 | | court shall enter an order stating that finding and ordering the |
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| 50 | 50 | | entity to divest all interest in the property. The attorney general |
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| 51 | 51 | | shall record a copy of the order in the real property records of |
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| 52 | 52 | | each county where any part of the real property subject to the order |
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| 53 | 53 | | is located. |
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| 54 | 54 | | Sec. 5.253. DIVESTMENT; FORCED SALE. (a) Not later than |
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| 55 | 55 | | the first anniversary of the date the district court enters an order |
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| 56 | 56 | | under Section 5.252(c), an entity found by the district court to |
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| 57 | 57 | | have purchased or acquired title to real property in violation of |
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| 58 | 58 | | this subchapter shall divest all interest in the real property. |
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| 59 | 59 | | (b) If an entity fails to divest an interest in real |
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| 60 | 60 | | property as required by an order issued under Subsection (a), the |
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| 61 | 61 | | district court shall enter an order that divests the entity's |
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| 62 | 62 | | interest in the real property and directs the sheriff or constable |
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| 63 | 63 | | for each county where any part of the real property is located to |
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| 64 | 64 | | seize and conduct a public sale of the property in the manner that |
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| 65 | 65 | | similar property is sold under execution. |
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| 66 | 66 | | Sec. 5.254. DISTRIBUTION OF SALE PROCEEDS. (a) An officer |
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| 67 | 67 | | conducting a public sale under Section 5.253(b) is entitled to |
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| 68 | 68 | | retain from the proceeds of the sale an amount equal to the |
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| 69 | 69 | | reasonable expenses incurred by the officer. |
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| 70 | 70 | | (b) The remaining proceeds of a sale conducted under Section |
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| 71 | 71 | | 5.253(b) shall be remitted to the comptroller for deposit in the |
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| 72 | 72 | | general revenue fund. |
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| 73 | 73 | | SECTION 3. As soon as practicable after the effective date |
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| 74 | 74 | | of this Act, the attorney general shall adopt rules for the |
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| 75 | 75 | | implementation of Subchapter H, Chapter 5, Property Code, as added |
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| 76 | 76 | | by this Act. |
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| 77 | 77 | | SECTION 4. The changes in law made by this Act apply only to |
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| 78 | 78 | | the purchase of or other acquisition of title to real property on or |
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| 79 | 79 | | after the effective date of this Act. The purchase of or other |
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| 80 | 80 | | acquisition of title to real property before the effective date of |
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| 81 | 81 | | this Act is governed by the law in effect immediately before the |
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| 82 | 82 | | effective date of this Act, and that law is continued in effect for |
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| 83 | 83 | | that purpose. |
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| 84 | 84 | | SECTION 5. This Act takes effect September 1, 2023. |
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