Texas 2023 - 88th 4th C.S.

Texas House Bill HB50 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New	Differences
1	1	By: Toth H.B. No. 50
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; LEASEHOLD. (a)
66	66	This 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. (a) In this section, "risk to the health,
80	80	safety, and welfare of the public" includes a likelihood that an
81	81	individual or entity will engage in an act that:
82	82	(1) constitutes:
83	83	(A) a violation of state or federal criminal law;
84	84	(B) corporate espionage; or
85	85	(C) a public nuisance; or
86	86	(2) causes or threatens to cause bodily injury to a
87	87	person, including the introduction of a dangerous disease or
88	88	dangerous substance into an area.
89	89	(b) Except as provided by Section 5.252 and notwithstanding
90	90	any other law, the following may not purchase or otherwise acquire
91	91	title to real property in this state if the purchase of or
92	92	acquisition of title to the property by the individual or entity
93	93	would create a risk to the health, safety, and welfare of the
94	94	public:
95	95	(1) a governmental entity of a designated country;
96	96	(2) a company or other entity that is:
97	97	(A) headquartered in a designated country;
98	98	(B) directly or indirectly under the control of
99	99	the government of a designated country; or
100	100	(C) owned by or under the control of one or more
101	101	individuals who are citizens of a designated country;
102	102	(3) a company or other entity that is owned by or under
103	103	the control of a company or entity described by Subdivision (2); or
104	104	(4) an individual who is a citizen of a designated
105	105	country.
106	106	Sec. 5.254. ATTORNEY GENERAL ENFORCEMENT. If the attorney
107	107	general has a reasonable suspicion that the purchase of or
108	108	acquisition of title to real property in this state by an individual
109	109	or entity in violation of this subchapter creates a risk to the
110	110	health, safety, and welfare of the public, as defined by Section
111	111	5.253, the attorney general may bring an action to enforce this
112	112	subchapter in a district court in the county where all or part of
113	113	the real property that is the subject of the violation is located.
114	114	Sec. 5.255. DISCOVERY; SECRETARY OF STATE INTERROGATORIES
115	115	AND RECORDS. (a) The attorney general may conduct discovery in an
116	116	action brought under Section 5.254.
117	117	(b) The secretary of state shall on request by the attorney
118	118	general:
119	119	(1) serve interrogatories on an individual or entity
120	120	as necessary to determine the ownership or control of a company or
121	121	other entity that is the subject of an action by the attorney
122	122	general under Section 5.254; and
123	123	(2) provide to the attorney general all records held
124	124	by the secretary relating to the ownership or control of a company
125	125	or other entity that is the subject of an action by the attorney
126	126	general under Section 5.254.
127	127	Sec. 5.256. APPOINTMENT OF RECEIVER. (a) If the district
128	128	court finds that the real property subject to an action brought
129	129	under Section 5.254 was purchased or otherwise acquired by an
130	130	individual or entity in violation of Section 5.253, the court shall
131	131	enter an order that:
132	132	(1) states the court's finding; and
133	133	(2) appoints a receiver to:
134	134	(A) manage and control the real property pending
135	135	the sale or other disposition of the real property; and
136	136	(B) return to the individual or entity any
137	137	proceeds of the sale or other disposition of the real property.
138	138	(b) On appointment and qualification, a receiver appointed
139	139	under this section has the powers and duties of a receiver under
140	140	Chapter 64, Civil Practice and Remedies Code.
141	141	SECTION 4. The changes in law made by this Act apply only to
142	142	the purchase of or other acquisition of title to real property on or
143	143	after the effective date of this Act. The purchase of or other
144	144	acquisition of title to real property before the effective date of
145	145	this Act is governed by the law in effect immediately before the
146	146	effective date of this Act, and that law is continued in effect for
147	147	that purpose.
148	148	SECTION 5. This Act takes effect immediately if it receives
149	149	a vote of two-thirds of all the members elected to each house, as
150	150	provided by Section 39, Article III, Texas Constitution. If this
151	151	Act does not receive the vote necessary for immediate effect, this
152	152	Act takes effect on the 91st day after the last day of legislative
153	153	session.