| 1 | 1 | | 88S30459 SHH-D |
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| 2 | 2 | | By: Oliverson H.B. No. 178 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to verification of identity and employment authorization |
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| 8 | 8 | | in connection with certain contracts for or concerning the |
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| 9 | 9 | | conveyance of residential real property and residential leases. |
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| 10 | 10 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 11 | 11 | | SECTION 1. Chapter 5, Property Code, is amended by adding |
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| 12 | 12 | | Subchapter I to read as follows: |
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| 13 | 13 | | SUBCHAPTER I. REQUIREMENT TO VERIFY IDENTITY AND EMPLOYMENT |
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| 14 | 14 | | AUTHORIZATION FOR CERTAIN RESIDENTIAL REAL PROPERTY TRANSACTIONS |
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| 15 | 15 | | Sec. 5.301. DEFINITIONS. In this subchapter: |
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| 16 | 16 | | (1) "Commercial real property" means real property |
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| 17 | 17 | | that is held or used for the production of income, including |
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| 18 | 18 | | industrial real property. |
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| 19 | 19 | | (2) "Employment authorization" means a citizenship or |
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| 20 | 20 | | immigration status that provides the right to work in the United |
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| 21 | 21 | | States as established for purposes of 8 C.F.R. Section 274a.2. |
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| 22 | 22 | | (3) "Residential real property" means real property |
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| 23 | 23 | | that is improved and is designed principally for residential |
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| 24 | 24 | | occupancy or vacant land that may be improved for that purpose. The |
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| 25 | 25 | | term includes an individual unit of a condominium or cooperative. |
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| 26 | 26 | | The term does not include commercial real property. |
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| 27 | 27 | | Sec. 5.302. APPLICABILITY OF SUBCHAPTER. This subchapter |
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| 28 | 28 | | applies only to a contract for or concerning the conveyance of |
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| 29 | 29 | | residential real property with respect to which the seller: |
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| 30 | 30 | | (1) enters into an executory contract for conveyance |
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| 31 | 31 | | of the property that allows the purchaser to take immediate |
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| 32 | 32 | | possession of the property and make periodic payments toward the |
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| 33 | 33 | | purchase price before the deed is delivered to the purchaser; |
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| 34 | 34 | | (2) grants a potential purchaser an option to purchase |
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| 35 | 35 | | the property that includes or is combined or executed concurrently |
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| 36 | 36 | | with a residential lease agreement; or |
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| 37 | 37 | | (3) provides a mortgage loan to an individual to |
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| 38 | 38 | | purchase the property. |
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| 39 | 39 | | Sec. 5.303. EVIDENCE OF IDENTITY AND EMPLOYMENT |
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| 40 | 40 | | AUTHORIZATION REQUIRED FOR CERTAIN RESIDENTIAL REAL PROPERTY |
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| 41 | 41 | | TRANSACTIONS. (a) A seller may not enter into a contract for or |
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| 42 | 42 | | concerning the conveyance of residential real property to which |
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| 43 | 43 | | this subchapter applies unless the seller requires the purchaser or |
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| 44 | 44 | | potential purchaser to: |
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| 45 | 45 | | (1) attest to the purchaser's or potential purchaser's |
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| 46 | 46 | | employment authorization; and |
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| 47 | 47 | | (2) provide to the property owner evidence of the |
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| 48 | 48 | | purchaser's or potential purchaser's identity and employment |
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| 49 | 49 | | authorization. |
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| 50 | 50 | | (b) A seller shall obtain the attestation required under |
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| 51 | 51 | | Subsection (a)(1) and record details of the evidence provided under |
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| 52 | 52 | | Subsection (a)(2) on a form similar to Form I-9 as provided by 8 |
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| 53 | 53 | | C.F.R. Section 274a.2. |
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| 54 | 54 | | Sec. 5.304. CONTRACT OR CONVEYANCE VOID IN CASE OF |
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| 55 | 55 | | VIOLATION. A contract entered into in violation of Section 5.303 |
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| 56 | 56 | | and any conveyance made under that contract is void. |
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| 57 | 57 | | SECTION 2. Subchapter A, Chapter 92, Property Code, is |
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| 58 | 58 | | amended by adding Section 92.027 to read as follows: |
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| 59 | 59 | | Sec. 92.027. EVIDENCE OF IDENTITY AND EMPLOYMENT |
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| 60 | 60 | | AUTHORIZATION REQUIRED FOR LEASE. (a) In this section, |
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| 61 | 61 | | "employment authorization" means a citizenship or immigration |
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| 62 | 62 | | status that provides the right to work in the United States as |
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| 63 | 63 | | established for purposes of 8 C.F.R. Section 274a.2. |
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| 64 | 64 | | (b) A landlord may not enter into a lease of residential |
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| 65 | 65 | | rental property unless the landlord requires the tenant to: |
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| 66 | 66 | | (1) attest to the tenant's employment authorization; |
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| 67 | 67 | | and |
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| 68 | 68 | | (2) provide to the landlord evidence of the tenant's |
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| 69 | 69 | | identity and employment authorization. |
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| 70 | 70 | | (c) A landlord shall obtain the attestation required under |
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| 71 | 71 | | Subsection (b)(1) and record details of the evidence provided under |
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| 72 | 72 | | Subsection (b)(2) on a form similar to Form I-9 as provided by 8 |
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| 73 | 73 | | C.F.R. Section 274a.2. |
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| 74 | 74 | | (d) A lease entered into in violation of this section is |
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| 75 | 75 | | void. |
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| 76 | 76 | | SECTION 3. The changes in law made by this Act apply only to |
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| 77 | 77 | | a contract or lease agreement entered into on or after the effective |
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| 78 | 78 | | date of this Act. A contract or lease agreement entered into before |
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| 79 | 79 | | the effective date of this Act is governed by the law in effect |
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| 80 | 80 | | immediately before the effective date of this Act, and that law is |
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| 81 | 81 | | continued in effect for that purpose. |
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| 82 | 82 | | SECTION 4. This Act takes effect on the 91st day after the |
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| 83 | 83 | | last day of the legislative session. |
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