Texas 2023 - 88th Regular

Texas Senate Bill SB147 Compare Versions

Version 1 (Old)

Version 2 (New)

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1	1	By: Kolkhorst, et al. S.B. No. 147
2	2
3	3
4	4	A BILL TO BE ENTITLED
5	5	AN ACT
6	6	relating to the purchase of or acquisition of title to real property
7	7	by certain aliens or foreign entities.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	SECTION 1. Section 64.001(a), Civil Practice and Remedies
10	10	Code, is amended to read as follows:
11	11	(a) A court of competent jurisdiction may appoint a
12	12	receiver:
13	13	(1) in an action by a vendor to vacate a fraudulent
14	14	purchase of property;
15	15	(2) in an action by a creditor to subject any property
16	16	or fund to the creditor's [his] claim;
17	17	(3) in an action between partners or others jointly
18	18	owning or interested in any property or fund;
19	19	(4) in an action by a mortgagee for the foreclosure of
20	20	the mortgage and sale of the mortgaged property;
21	21	(5) for a corporation that is insolvent, is in
22	22	imminent danger of insolvency, has been dissolved, or has forfeited
23	23	its corporate rights; [or]
24	24	(6) in an action by the attorney general under
25	25	Subchapter H, Chapter 5, Property Code; or
26	26	(7) in any other case in which a receiver may be
27	27	appointed under the rules of equity.
28	28	SECTION 2. Section 5.005, Property Code, is amended to read
29	29	as follows:
30	30	Sec. 5.005. ALIENS. Except as provided by Subchapter H, an
31	31	[An] alien has the same real and personal property rights as a
32	32	United States citizen.
33	33	SECTION 3. Chapter 5, Property Code, is amended by adding
34	34	Subchapter H to read as follows:
35	35	SUBCHAPTER H. PURCHASE OF OR ACQUISITION OF TITLE TO REAL PROPERTY
36	36	BY CERTAIN FOREIGN INDIVIDUALS OR ENTITIES
37	37	Sec. 5.251. DEFINITIONS. In this subchapter:
38	38	(1) "Agricultural land" means land that is located in
39	39	this state and that is suitable for:
40	40	(A) use in production of plants and fruits grown
41	41	for human or animal consumption, or plants grown for the production
42	42	of fibers, floriculture, viticulture, horticulture, or planting
43	43	seed; or
44	44	(B) domestic or native farm or ranch animals kept
45	45	for use or profit.
46	46	(2) "Control" means ownership of at least 50 percent
47	47	of the voting ownership interest of an organization necessary to
48	48	elect a governing person or governing authority of an organization.
49	49	(3) "Designated country" means a country identified by
50	50	the United States Director of National Intelligence as a country
51	51	that poses a risk to the national security of the United States in
52	52	each of the three most recent Annual Threat Assessments of the U.S.
53	53	Intelligence Community issued pursuant to Section 108B, National
54	54	Security Act of 1947 (50 U.S.C. Section 3043b).
55	55	(4) "Governing authority," "governing person," and
56	56	"organization" have the meanings assigned by Section 1.002,
57	57	Business Organizations Code.
58	58	(5) "Real property" means:
59	59	(A) agricultural land;
60	60	(B) an improvement located on agricultural land;
61	61	(C) a mine or quarry;
62	62	(D) a mineral in place; or
63	63	(E) standing timber.
64	64	Sec. 5.252. EXCEPTIONS: UNITED STATES CITIZENS AND LAWFUL
65	65	PERMANENT RESIDENTS; RESIDENCE HOMESTEAD PROPERTY. (a) This
66	66	subchapter does not apply to:
67	67	(1) an individual who is a citizen or lawful permanent
68	68	resident of the United States, including an individual who is a
69	69	citizen of a foreign country; or
70	70	(2) a company or other entity that is owned by or under
71	71	the control of one or more individuals described by Subdivision
72	72	(1).
73	73	(b) This subchapter does not apply to real property that is
74	74	an individual's residence homestead, as defined by Section
75	75	11.13(j), Tax Code.
76	76	(c) This subchapter does not apply to a leasehold interest
77	77	in land or improvements constructed upon a leasehold.
78	78	Sec. 5.253. PROHIBITION ON PURCHASE OF OR ACQUISITION OF
79	79	TITLE TO REAL PROPERTY. Except as provided by Section 5.252 and
80	80	notwithstanding any other law, the following may not purchase or
81	81	otherwise acquire title to real property in this state:
82	82	(1) a governmental entity of a designated country;
83	83	(2) a company or other entity that is:
84	84	(A) headquartered in a designated country;
85	85	(B) directly or indirectly under the control of
86	86	the government of a designated country; or
87	87	(C) owned by or under the control of one or more
88	88	individuals who are citizens of a designated country;
89	89	(3) a company or other entity that is owned by or under
90	90	the control of a company or entity described by Subdivision (2); or
91	91	(4) an individual who is a citizen of a designated
92	92	country.
93	93	Sec. 5.254. ATTORNEY GENERAL ENFORCEMENT. If the attorney
94	94	general has a reasonable suspicion that the purchase of or
95	95	acquisition of title to real property in this state by an individual
96	96	or entity in violation of this subchapter creates a risk to the
97	97	health, safety, and welfare of the public, the attorney general may
98	98	bring an action to enforce this subchapter in a district court in
99	99	the county where all or part of the real property that is the
100	100	subject of the violation is located.
101	101	Sec. 5.255. DISCOVERY; SECRETARY OF STATE INTERROGATORIES
102	102	AND RECORDS. (a) The attorney general may conduct discovery in an
103	103	action brought under Section 5.254.
104	104	(b) The secretary of state shall on request by the attorney
105	105	general:
106	106	(1) serve interrogatories on an individual or entity
107	107	as necessary to determine the ownership or control of a company or
108	108	other entity that is the subject of an action by the attorney
109	109	general under Section 5.254; and
110	110	(2) provide to the attorney general all records held
111	111	by the secretary relating to the ownership or control of a company
112	112	or other entity that is the subject of an action by the attorney
113	113	general under Section 5.254.
114	114	Sec. 5.256. DIVESTITURE; APPOINTMENT OF RECEIVER. (a) If
115	115	the district court finds that the real property subject to an action
116	116	brought under Section 5.254 was purchased or otherwise acquired by
117	117	an individual or entity in violation of Section 5.253, the court
118	118	shall enter an order that:
119	119	(1) states the court's finding;
120	120	(2) divests the individual's or entity's interest in
121	121	the real property; and
122	122	(3) appoints a receiver to manage and control the real
123	123	property pending the sale or other disposition of the real
124	124	property.
125	125	(b) On appointment and qualification, a receiver appointed
126	126	under this section has the powers and duties of a receiver under
127	127	Chapter 64, Civil Practice and Remedies Code.
128	128	SECTION 4. As soon as practicable after the effective date
129	129	of this Act, the attorney general shall adopt rules for the
130	130	implementation of Subchapter H, Chapter 5, Property Code, as added
131	131	by this Act.
132	132	SECTION 5. The changes in law made by this Act apply only to
133	133	the purchase of or other acquisition of title to real property on or
134	134	after the effective date of this Act. The purchase of or other
135	135	acquisition of title to real property before the effective date of
136	136	this Act is governed by the law in effect immediately before the
137	137	effective date of this Act, and that law is continued in effect for
138	138	that purpose.
139	139	SECTION 6. This Act takes effect September 1, 2023.