Texas 2025 - 89th Regular

Texas House Bill HB17 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	89R8449 DRS-D
2	2	By: Hefner H.B. No. 17
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7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to the purchase of or acquisition of title to real property
10	10	by certain aliens or foreign entities; creating a criminal offense.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Section 64.001(a), Civil Practice and Remedies
13	13	Code, is amended to read as follows:
14	14	(a) A court of competent jurisdiction may appoint a
15	15	receiver:
16	16	(1) in an action by a vendor to vacate a fraudulent
17	17	purchase of property;
18	18	(2) in an action by a creditor to subject any property
19	19	or fund to the creditor's [his] claim;
20	20	(3) in an action between partners or others jointly
21	21	owning or interested in any property or fund;
22	22	(4) in an action by a mortgagee for the foreclosure of
23	23	the mortgage and sale of the mortgaged property;
24	24	(5) for a corporation that is insolvent, is in
25	25	imminent danger of insolvency, has been dissolved, or has forfeited
26	26	its corporate rights; [or]
27	27	(6) in an action by the attorney general under
28	28	Subchapter H, Chapter 5, Property Code; or
29	29	(7) in any other case in which a receiver may be
30	30	appointed under the rules of equity.
31	31	SECTION 2. Section 5.005, Property Code, is amended to read
32	32	as follows:
33	33	Sec. 5.005. ALIENS. Except as provided by Subchapter H, an
34	34	[An] alien has the same real and personal property rights as a
35	35	United States citizen.
36	36	SECTION 3. Chapter 5, Property Code, is amended by adding
37	37	Subchapter H to read as follows:
38	38	SUBCHAPTER H. PURCHASE OF OR ACQUISITION OF TITLE TO REAL PROPERTY
39	39	BY CERTAIN FOREIGN INDIVIDUALS OR ENTITIES
40	40	Sec. 5.251. DEFINITIONS. In this subchapter:
41	41	(1) "Company" means a sole proprietorship,
42	42	organization, association, corporation, partnership, joint
43	43	venture, limited partnership, limited liability partnership, or
44	44	limited liability company, including a wholly owned subsidiary,
45	45	majority-owned subsidiary, parent company, or affiliate of those
46	46	entities or business associations, that exists to make a profit.
47	47	(2) "Designated country" means:
48	48	(A) China, Iran, North Korea, or Russia; or
49	49	(B) a country designated by the governor under
50	50	Section 5.254.
51	51	Sec. 5.252. EXCEPTIONS: UNITED STATES CITIZENS AND CERTAIN
52	52	LAWFUL RESIDENTS; LEASEHOLD PROPERTY. This subchapter does not
53	53	apply to:
54	54	(1) an individual who is:
55	55	(A) a citizen or lawful permanent resident of the
56	56	United States; or
57	57	(B) a citizen of a foreign country who is not
58	58	domiciled in a designated country;
59	59	(2) a company or other entity that is owned by or under
60	60	the control of:
61	61	(A) one or more individuals described by
62	62	Subdivision (1); and
63	63	(B) no individual described by Section 5.253; or
64	64	(3) a leasehold interest in land or improvements
65	65	constructed upon a leasehold.
66	66	Sec. 5.253. PROHIBITION ON PURCHASE OF OR ACQUISITION OF
67	67	TITLE TO REAL PROPERTY. Notwithstanding any other law, the
68	68	following may not purchase or otherwise acquire title to real
69	69	property in this state:
70	70	(1) a governmental entity of a designated country;
71	71	(2) a company or other entity that is:
72	72	(A) headquartered in a designated country;
73	73	(B) directly or indirectly held or controlled by
74	74	the government of a designated country; or
75	75	(C) owned by or the majority of stock or other
76	76	ownership interest of which is held or controlled by individuals
77	77	described by Subdivision (4);
78	78	(3) a company or other entity that is owned by or the
79	79	majority of stock or other ownership interest of which is held or
80	80	controlled by a company or entity described by Subdivision (2); or
81	81	(4) an individual who is domiciled in a designated
82	82	country.
83	83	Sec. 5.254. DESIGNATION OF COUNTRY AS SUBJECT TO
84	84	PROHIBITION ON PURCHASE OF OR ACQUISITION OF TITLE TO REAL
85	85	PROPERTY. (a) The governor, after consultation with the public
86	86	safety director of the Department of Public Safety, may designate a
87	87	country of which a governmental entity, company or other entity, or
88	88	citizen shall be subject to this subchapter.
89	89	(b) The governor shall consult the Homeland Security
90	90	Council established under Subchapter B, Chapter 421, Government
91	91	Code, for purposes of making a designation under this section.
92	92	Sec. 5.255. INVESTIGATION AND ENFORCEMENT BY ATTORNEY
93	93	GENERAL; LAW ENFORCEMENT REFERRAL. (a) The attorney general shall
94	94	establish procedures to examine a transfer of real property and
95	95	determine whether an investigation of a possible violation of this
96	96	subchapter is warranted.
97	97	(b) If the attorney general determines that an
98	98	investigation of a transfer of real property is warranted under
99	99	this section, the attorney general:
100	100	(1) shall investigate the transfer of real property
101	101	and determine whether a violation of this subchapter occurred;
102	102	(2) may bring an action to enforce this subchapter in a
103	103	district court in the county where all or part of the real property
104	104	that is the subject of the violation is located; and
105	105	(3) may refer the matter to the appropriate local,
106	106	state, or federal law enforcement agency.
107	107	Sec. 5.256. DIVESTITURE; APPOINTMENT OF RECEIVER;
108	108	DISTRIBUTION OF SALE PROCEEDS. (a) If the district court finds
109	109	that the real property subject to an action brought under Section
110	110	5.255 was purchased or otherwise acquired by an individual or
111	111	entity in violation of Section 5.253, the court shall enter an order
112	112	that:
113	113	(1) states the court's finding;
114	114	(2) divests the individual's or entity's interest in
115	115	the real property; and
116	116	(3) appoints a receiver to manage and control the real
117	117	property pending the sale or other disposition of the real
118	118	property.
119	119	(b) On appointment and qualification, a receiver appointed
120	120	under this section has the powers and duties of a receiver under
121	121	Chapter 64, Civil Practice and Remedies Code.
122	122	(c) Proceeds from the sale or other disposition of real
123	123	property under an order described by Subsection (a) shall be
124	124	applied first to satisfy any existing liens on the property and then
125	125	to pay a fine assessed under Section 5.257(c). The remaining
126	126	proceeds shall be remitted to the comptroller for deposit in the
127	127	general revenue fund.
128	128	Sec. 5.257. OFFENSE; PENALTY. (a) A person commits an
129	129	offense if the person:
130	130	(1) is an individual domiciled in a designated
131	131	country; and
132	132	(2) intentionally or knowingly purchases or otherwise
133	133	acquires title to real property in this state.
134	134	(b) An offense under Subsection (a) is a state jail felony.
135	135	(c) A company or entity that the attorney general determines
136	136	under Section 5.255(b) to have violated this subchapter shall pay
137	137	to this state a fine equal to the greater of:
138	138	(1) $250,000; or
139	139	(2) 50 percent of the market value of the real property
140	140	that is the subject of the violation.
141	141	SECTION 4. As soon as practicable after the effective date
142	142	of this Act, the attorney general shall adopt rules for the
143	143	implementation of Subchapter H, Chapter 5, Property Code, as added
144	144	by this Act.
145	145	SECTION 5. The changes in law made by this Act apply only to
146	146	the purchase of or other acquisition of title to real property on or
147	147	after the effective date of this Act. The purchase of or other
148	148	acquisition of title to real property before the effective date of
149	149	this Act is governed by the law in effect immediately before the
150	150	effective date of this Act, and that law is continued in effect for
151	151	that purpose.
152	152	SECTION 6. This Act takes effect September 1, 2025.