88S30595 DRS-D
By: Isaac H.B. No. 179
A BILL TO BE ENTITLED
AN ACT
relating to the ownership of real property by certain aliens or
foreign entities.
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. OWNERSHIP OF REAL PROPERTY BY CERTAIN FOREIGN
INDIVIDUALS OR ENTITIES
Sec. 5.251. DEFINITIONS. In this subchapter:
(1) "Control" means ownership of at least 50 percent
of the voting ownership interest of an organization necessary to
elect a governing person or governing authority of an organization.
(2) "Designated country" means a country designated by
the governor under Section 5.253.
(3) "Governing authority," "governing person," and
"organization" have the meanings assigned by Section 1.002,
Business Organizations Code.
Sec. 5.252. EXCEPTION: UNITED STATES CITIZENS AND LAWFUL
PERMANENT RESIDENTS. This subchapter does not apply to:
(1) an individual who is a citizen or lawful permanent
resident of the United States, including an individual who is a
citizen of a foreign country; or
(2) a company or other entity that is owned by or under
the control of one or more individuals described by Subdivision
(1).
Sec. 5.253. DESIGNATION OF COUNTRY AS SUBJECT TO
PROHIBITION ON OWNERSHIP OF 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. PROHIBITION ON OWNERSHIP OF REAL PROPERTY.
Except as provided by Section 5.252 and notwithstanding any other
law, the following may not own 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 under the control of
the government of a designated country; or
(C) owned by or under the control of one or more
individuals who are citizens of a designated country;
(3) a company or other entity that is owned by or under
the control of a company or entity described by Subdivision (2); or
(4) an individual who is a citizen of a designated
country.
Sec. 5.255. ATTORNEY GENERAL ENFORCEMENT. (a) If the
attorney general has a reasonable suspicion that an individual or
entity owns real property in this state in violation of this
subchapter, the attorney general may bring an action to enforce
this subchapter in a district court in the county where all or part
of the real property that is the subject of the violation is
located.
(b) If the district court finds that the real property
subject to an action brought under Subsection (a) is owned by an
individual or entity in violation of Section 5.254, the court shall
enter an order stating that finding and ordering the individual or
entity to divest all interest in the property.
Sec. 5.256. DIVESTMENT; FORFEITURE. (a) Not later than the
first anniversary of the date the district court enters an order
under Section 5.255(b), an individual or entity found by the
district court to own real property in violation of this subchapter
shall divest all interest in the real property.
(b) If an individual or entity fails to divest an interest
in real property as required by an order issued under Subsection
(a), the district court shall enter an order that forfeits the
individual's or entity's interest in the real property to this
state.
Sec. 5.257. STATE MANAGEMENT OF FORFEITED REAL PROPERTY.
(a) An interest in real property forfeited to this state under
Section 5.256(b) shall be owned by this state and managed by the
General Land Office.
(b) Proceeds of a disposition of an interest in real
property forfeited to this state under Section 5.256(b) shall be
remitted to the comptroller for deposit to the credit of the
foundation school fund.
SECTION 3. As soon as practicable after the effective date
of this Act, the attorney general shall adopt rules for the
implementation of Subchapter H, Chapter 5, Property Code, as added
by this Act.
SECTION 4. This Act applies to ownership of real property
regardless of whether ownership is acquired before, on, or after
the effective date of this Act.
SECTION 5. This Act takes effect on the 91st day after the
last day of the legislative session.