By: Little H.B. No. 1743
A BILL TO BE ENTITLED
AN ACT
relating to the holding or acquisition of an interest in real
property by or on behalf of certain foreign individuals or
entities; establishing an agricultural intelligence office;
creating a criminal offense.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. This Act may be cited as the Protect Texas Land
Act.
Section 2. 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 3. Chapter 5, Property Code, is amended by adding
Subchapter H to read as follows:
SUBCHAPTER H. HOLDING OR ACQUISITION OF REAL PROPERTY INTERESTS BY
FOREIGN INDIVIDUALS OR ENTITIES
Sec. 5.251. DEFINITIONS. In this subchapter:
(1) "Agricultural land" means land located in this
state that is suitable for:
(A) use in production of plants and fruits grown
for human or animal consumption, or plants grown for the production
of fibers, floriculture, viticulture, horticulture, or planting
seed; or
(B) domestic or native farm or ranch animals kept
for use or profit.
(2) "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.
(3) "Governing authority," "governing person," and
"organization" have the meanings assigned by Section 1.002,
Business Organizations Code.
(4) "Real property" means:
(A) land, including agricultural land;
(B) an improvement;
(C) a mine or quarry;
(D) a mineral in place; or
(E) standing timber.
(5) "Significant interest" and "substantial control"
mean:
(A) ownership of at least 33 percent of the
voting ownership interest of an organization necessary to elect a
governing person or governing authority of an organization, whether
held by:
(i) one individual, organization, or
entity; or
(ii) more than one individual,
organization, or entity acting in concert with respect to the
interest; or
(B) ownership of at least 50 percent of the
voting ownership interest described by Paragraph (A) held by more
than one individual, organization, or entity regardless of whether
the individuals, organizations, or entities are acting in concert
with respect to the interest.
Sec. 5.252. REPORT OF HOLDING OR TRANSACTION REQUIRED;
OFFENSE. (a) The following persons shall report to the attorney
general any interest in real property in this state held, acquired,
or sold by the person:
(1) an individual who is not a citizen of the United
States;
(2) an organization that:
(A) is organized under the laws of a foreign
government; or
(B) has its principal place of business outside
of the United States;
(3) an organization in which a significant interest or
of which substantial control is directly or indirectly held or
capable of being exercised by:
(A) an individual who is not a citizen or lawful
permanent resident of the United States; or
(B) a governmental entity of a foreign
government; or
(4) a governmental entity of a foreign government.
(b) A person described by Subsection (a) shall report to the
attorney general any interest in real property acquired or sold by
the person not later than the 90th day after the date of the
acquisition or sale that is the subject of the report.
(b-1) A person described by Subsection (a) shall, not later
than April 1, 2026, report to the attorney general any interest in
agricultural land or other real property held by the person on
September 1, 2025. This subsection expires September 1, 2029.
(c) A report under this section must:
(1) identify the person holding, acquiring, or selling
the interest in real property that is the subject of the report; and
(2) include any other relevant information required by
the attorney general.
(d) The attorney general shall prescribe a form for the
report required by this section.
(e) A person commits an offense if the person intentionally
or knowingly:
(1) fails to report an interest in real property held,
acquired, or sold by the person as required by this section; or
(2) makes a report under this section that conceals or
falsely represents the identity of a person holding, acquiring, or
selling an interest in real property.
(f) An offense under this section is a state jail felony.
Sec. 5.253. PROHIBITION ON HOLDING OR ACQUISITION OF
INTEREST IN AGRICULTURAL LAND BY CERTAIN PERSONS. (a) Subject to
Subsection (b) and notwithstanding any other law, the following
persons may not hold or acquire an interest in agricultural land in
this state:
(1) an individual citizen or resident of a country
that is subject to an arms embargo under 22 C.F.R. Section 126.1 who
is:
(A) not a citizen of the United States; and
(B) not a resident of this state;
(2) a governmental entity of or organization organized
under the law of a country that is subject to an arms embargo under
22 C.F.R. Section 126.1;
(3) an organization in which a significant interest or
of which substantial control is directly or indirectly held or
capable of being exercised by an individual, organization, or
governmental entity described by Subdivision (1) or (2);
(4) an entity of particular concern designated in the
United States secretary of state's most recent designations under
the International Religious Freedom Act of 1998 (22 U.S.C. Section
6401 et seq.); or
(5) an agent, trustee, or other fiduciary of an
individual, organization, or entity described by this subsection.
(a-1) Notwithstanding Subsection (a), a person described by
Subsection (a) may continue to hold an interest in agricultural
land acquired before September 1, 2025, until September 1, 2027,
but must divest the person's interest in the agricultural land
before that date. This subsection expires January 1, 2028.
(b) An individual who holds an interest in agricultural land
in this state while a resident of this state is not required to
divest the individual's interest in the agricultural land before
the second anniversary of the date the individual no longer resides
in this state if the individual's change in residence makes the
individual ineligible to hold an interest in agricultural land
under Subsection (a).
Sec. 5.254. PROHIBITION ON HOLDING OR ACQUISITION OF
INTEREST IN ANY REAL PROPERTY BY CERTAIN ORGANIZATIONS. (a)
Notwithstanding any other law, an organization that is under the
control of an individual, organization, or entity described by
Section 5.253(a) may not hold or acquire an interest in any real
property in this state.
(b) A person may not hold or acquire any interest in real
property in this state as an agent, trustee, or other fiduciary of
an organization described by Subsection (a).
(c) Notwithstanding Subsections (a) and (b), a person
described by Subsection (a) or (b) may continue to hold an interest
in real property acquired before September 1, 2025, until September
1, 2027, but must divest the person's interest in the real property
before that date. This subsection expires January 1, 2028.
Sec. 5.255. ATTORNEY GENERAL ENFORCEMENT; FORCED SALE. (a)
If the attorney general receives a report of a violation of Section
5.253 or 5.254 from the office of agricultural intelligence under
Section 12.052, Agriculture Code, or any other person, the attorney
general:
(1) may issue subpoenas requiring the appearance of
witnesses, production of relevant records, or giving of relevant
testimony; and
(2) if the attorney general determines that a
violation of Section 5.253 or 5.254 has occurred, shall bring an
action as provided by Subsection (b).
(b) If the attorney general determines that a person holds
an interest in real property in this state in violation of Section
5.253 or 5.254, the attorney general shall bring an action in a
district court in a county in which all or part of the real property
is located.
(c) If the district court finds that the interest in real
property that is the subject of the action is held in violation of
Section 5.253 or 5.254, the court shall enter an order that:
(1) states the court's finding;
(2) divests the person's interest in the real
property; and
(3) directs the sheriff or constable for each county
where any part of the real property is located to seize and conduct
a public sale of the property in the manner that similar property is
sold under execution.
(d) The attorney general shall record in the real property
records of each county in which any part of the real property is
located:
(1) notice of the filing of the action; and
(2) a copy of the district court's order under
Subsection (c).
Sec. 5.256. OFFENSES. (a) A person commits an offense if
the person intentionally or knowingly holds or acquires an interest
in real property in this state in violation of Section 5.253 or
5.254.
(b) An individual director, officer, agent, or employee of
an organization described by Section 5.253(a) or 5.254(a) commits
an offense if the individual intentionally or knowingly causes the
organization to hold or acquire an interest in real property in this
state in violation of Section 5.253 or 5.254.
(c) An offense under this section is a state jail felony.
Sec. 5.257. VALIDITY OF TITLE NOT AFFECTED. The validity of
title to real property in this state held by a person who is not
prohibited by this subchapter from acquiring or holding an interest
in the property is not affected by this subchapter because of a
violation of Section 5.253 or 5.254 by a former owner or holder of
an interest in the property.
Sec. 5.258. NO DUTY TO INQUIRE. This subchapter does not
require a person to determine or inquire into whether another
person is or may be subject to this subchapter.
SECTION 4. Chapter 12, Agriculture Code, is amended by
adding Section 12.052 to read as follows:
Sec. 12.052. AGRICULTURAL INTELLIGENCE OFFICE. (a) The
department shall establish and maintain an agricultural
intelligence office that operates under the direction of the
commissioner.
(b) The agricultural intelligence office:
(1) shall collect and analyze information concerning
the holding or acquisition of agricultural land in this state in
violation of Subchapter H, Chapter 5, Property Code;
(2) shall administer and enforce the provisions of
Subchapter H, Chapter 5, Property Code, with respect to
agricultural land;
(3) shall report to the attorney general a violation
of Subchapter H, Chapter 5, Property Code, if the office determines
that a violation has occurred with respect to agricultural land;
and
(4) may designate employees who are peace officers to
perform the duties provided under this subsection.
SECTION 5. This Act takes effect September 1, 2025.