Texas 2023 - 88th 4th C.S.

Texas Senate Bill SB38 Compare Versions

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Version 2 (New)

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1	1	88S40148 DRS-F
2	2	By: Kolkhorst S.B. No. 38
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the purchase of or acquisition of title to real property
8	8	by certain aliens or foreign entities.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Section 64.001(a), Civil Practice and Remedies
11	11	Code, is amended to read as follows:
12	12	(a) A court of competent jurisdiction may appoint a
13	13	receiver:
14	14	(1) in an action by a vendor to vacate a fraudulent
15	15	purchase of property;
16	16	(2) in an action by a creditor to subject any property
17	17	or fund to the creditor's [his] claim;
18	18	(3) in an action between partners or others jointly
19	19	owning or interested in any property or fund;
20	20	(4) in an action by a mortgagee for the foreclosure of
21	21	the mortgage and sale of the mortgaged property;
22	22	(5) for a corporation that is insolvent, is in
23	23	imminent danger of insolvency, has been dissolved, or has forfeited
24	24	its corporate rights; [or]
25	25	(6) in an action by the attorney general under
26	26	Subchapter H, Chapter 5, Property Code; or
27	27	(7) in any other case in which a receiver may be
28	28	appointed under the rules of equity.
29	29	SECTION 2. Section 5.005, Property Code, is amended to read
30	30	as follows:
31	31	Sec. 5.005. ALIENS. Except as provided by Subchapter H, an
32	32	[An] alien has the same real and personal property rights as a
33	33	United States citizen.
34	34	SECTION 3. Chapter 5, Property Code, is amended by adding
35	35	Subchapter H to read as follows:
36	36	SUBCHAPTER H. PURCHASE OF OR ACQUISITION OF TITLE TO REAL PROPERTY
37	37	BY CERTAIN FOREIGN INDIVIDUALS OR ENTITIES
38	38	Sec. 5.251. DEFINITIONS. In this subchapter:
39	39	(1) "Agricultural land" means land that is located in
40	40	this state and that is suitable for:
41	41	(A) use in production of plants and fruits grown
42	42	for human or animal consumption, or plants grown for the production
43	43	of fibers, floriculture, viticulture, horticulture, or planting
44	44	seed; or
45	45	(B) domestic or native farm or ranch animals kept
46	46	for use or profit.
47	47	(2) "Control" means ownership of at least 50 percent
48	48	of the voting ownership interest of an organization necessary to
49	49	elect a governing person or governing authority of an organization.
50	50	(3) "Designated country" means a country identified by
51	51	the United States Director of National Intelligence as a country
52	52	that poses a risk to the national security of the United States in
53	53	each of the three most recent Annual Threat Assessments of the U.S.
54	54	Intelligence Community issued pursuant to Section 108B, National
55	55	Security Act of 1947 (50 U.S.C. Section 3043b).
56	56	(4) "Governing authority," "governing person," and
57	57	"organization" have the meanings assigned by Section 1.002,
58	58	Business Organizations Code.
59	59	(5) "Real property" means:
60	60	(A) agricultural land;
61	61	(B) an improvement located on agricultural land;
62	62	(C) a mine or quarry;
63	63	(D) a mineral in place; or
64	64	(E) standing timber.
65	65	Sec. 5.252. EXCEPTIONS: UNITED STATES CITIZENS AND LAWFUL
66	66	PERMANENT RESIDENTS; RESIDENCE HOMESTEAD PROPERTY; LEASEHOLD. (a)
67	67	This subchapter does not apply to:
68	68	(1) an individual who is a citizen or lawful permanent
69	69	resident of the United States, including an individual who is a
70	70	citizen of a foreign country; or
71	71	(2) a company or other entity that is owned by or under
72	72	the control of one or more individuals described by Subdivision
73	73	(1).
74	74	(b) This subchapter does not apply to real property that is
75	75	an individual's residence homestead, as defined by Section
76	76	11.13(j), Tax Code.
77	77	(c) This subchapter does not apply to a leasehold interest
78	78	in land or improvements constructed upon a leasehold.
79	79	Sec. 5.253. PROHIBITION ON PURCHASE OF OR ACQUISITION OF
80	80	TITLE TO REAL PROPERTY. (a) In this section, "risk to the health,
81	81	safety, and welfare of the public" includes a likelihood that an
82	82	individual or entity will engage in an act that:
83	83	(1) constitutes:
84	84	(A) a violation of state or federal criminal law;
85	85	(B) corporate espionage; or
86	86	(C) a public nuisance; or
87	87	(2) causes or threatens to cause bodily injury to a
88	88	person, including the introduction of a dangerous disease or
89	89	dangerous substance into an area.
90	90	(b) Except as provided by Section 5.252 and notwithstanding
91	91	any other law, the following may not purchase or otherwise acquire
92	92	title to real property in this state if the purchase of or
93	93	acquisition of title to the property by the individual or entity
94	94	would create a risk to the health, safety, and welfare of the
95	95	public:
96	96	(1) a governmental entity of a designated country;
97	97	(2) a company or other entity that is:
98	98	(A) headquartered in a designated country;
99	99	(B) directly or indirectly under the control of
100	100	the government of a designated country; or
101	101	(C) owned by or under the control of one or more
102	102	individuals who are citizens of a designated country;
103	103	(3) a company or other entity that is owned by or under
104	104	the control of a company or entity described by Subdivision (2); or
105	105	(4) an individual who is a citizen of a designated
106	106	country.
107	107	Sec. 5.254. ATTORNEY GENERAL ENFORCEMENT. If the attorney
108	108	general has a reasonable suspicion that the purchase of or
109	109	acquisition of title to real property in this state by an individual
110	110	or entity in violation of this subchapter creates a risk to the
111	111	health, safety, and welfare of the public, as defined by Section
112	112	5.253, the attorney general may bring an action to enforce this
113	113	subchapter in a district court in the county where all or part of
114	114	the real property that is the subject of the violation is located.
115	115	Sec. 5.255. DISCOVERY; SECRETARY OF STATE INTERROGATORIES
116	116	AND RECORDS. (a) The attorney general may conduct discovery in an
117	117	action brought under Section 5.254.
118	118	(b) The secretary of state shall on request by the attorney
119	119	general:
120	120	(1) serve interrogatories on an individual or entity
121	121	as necessary to determine the ownership or control of a company or
122	122	other entity that is the subject of an action by the attorney
123	123	general under Section 5.254; and
124	124	(2) provide to the attorney general all records held
125	125	by the secretary relating to the ownership or control of a company
126	126	or other entity that is the subject of an action by the attorney
127	127	general under Section 5.254.
128	128	Sec. 5.256. APPOINTMENT OF RECEIVER. (a) If the district
129	129	court finds that the real property subject to an action brought
130	130	under Section 5.254 was purchased or otherwise acquired by an
131	131	individual or entity in violation of Section 5.253, the court shall
132	132	enter an order that:
133	133	(1) states the court's finding; and
134	134	(2) appoints a receiver to:
135	135	(A) manage and control the real property pending
136	136	the sale or other disposition of the real property; and
137	137	(B) return to the individual or entity any
138	138	proceeds of the sale or other disposition of the real property.
139	139	(b) On appointment and qualification, a receiver appointed
140	140	under this section has the powers and duties of a receiver under
141	141	Chapter 64, Civil Practice and Remedies Code.
142	142	SECTION 4. The changes in law made by this Act apply only to
143	143	the purchase of or other acquisition of title to real property on or
144	144	after the effective date of this Act. The purchase of or other
145	145	acquisition of title to real property before the effective date of
146	146	this Act is governed by the law in effect immediately before the
147	147	effective date of this Act, and that law is continued in effect for
148	148	that purpose.
149	149	SECTION 5. This Act takes effect on the 91st day after the
150	150	last day of the legislative session.