Texas 2025 - 89th Regular

Texas House Bill HB1743 Compare Versions

Version 1 (Old)

Version 2 (New)

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1	1		By: Little H.B. No. 1743
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4	6		A BILL TO BE ENTITLED
5	7		AN ACT
6	8		relating to the holding or acquisition of an interest in real
7	9		property by or on behalf of certain foreign individuals or
8	10		entities; establishing an agricultural intelligence office;
9	11		creating a criminal offense.
10	12		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	13		SECTION 1. This Act may be cited as the Protect Texas Land
12	14		Act.
13	15		Section 2. Section 5.005, Property Code, is amended to read
14	16		as follows:
15	17		Sec. 5.005. ALIENS. Except as provided by Subchapter H, an
16	18		[An] alien has the same real and personal property rights as a
17	19		United States citizen.
18	20		SECTION 3. Chapter 5, Property Code, is amended by adding
19	21		Subchapter H to read as follows:
20	22		SUBCHAPTER H. HOLDING OR ACQUISITION OF REAL PROPERTY INTERESTS BY
21	23		FOREIGN INDIVIDUALS OR ENTITIES
22	24		Sec. 5.251. DEFINITIONS. In this subchapter:
23	25		(1) "Agricultural land" means land located in this
24	26		state that is suitable for:
25	27		(A) use in production of plants and fruits grown
26	28		for human or animal consumption, or plants grown for the production
27	29		of fibers, floriculture, viticulture, horticulture, or planting
28	30		seed; or
29	31		(B) domestic or native farm or ranch animals kept
30	32		for use or profit.
31	33		(2) "Control" means ownership of at least 50 percent
32	34		of the voting ownership interest of an organization necessary to
33	35		elect a governing person or governing authority of an organization.
34	36		(3) "Governing authority," "governing person," and
35	37		"organization" have the meanings assigned by Section 1.002,
36	38		Business Organizations Code.
37	39		(4) "Real property" means:
38	40		(A) land, including agricultural land;
39	41		(B) an improvement;
40	42		(C) a mine or quarry;
41	43		(D) a mineral in place; or
42	44		(E) standing timber.
43	45		(5) "Significant interest" and "substantial control"
44	46		mean:
45	47		(A) ownership of at least 33 percent of the
46	48		voting ownership interest of an organization necessary to elect a
47	49		governing person or governing authority of an organization, whether
48	50		held by:
49	51		(i) one individual, organization, or
50	52		entity; or
51	53		(ii) more than one individual,
52	54		organization, or entity acting in concert with respect to the
53	55		interest; or
54	56		(B) ownership of at least 50 percent of the
55	57		voting ownership interest described by Paragraph (A) held by more
56	58		than one individual, organization, or entity regardless of whether
57	59		the individuals, organizations, or entities are acting in concert
58	60		with respect to the interest.
59	61		Sec. 5.252. REPORT OF HOLDING OR TRANSACTION REQUIRED;
60	62		OFFENSE. (a) The following persons shall report to the attorney
61	63		general any interest in real property in this state held, acquired,
62	64		or sold by the person:
63	65		(1) an individual who is not a citizen of the United
64	66		States;
65	67		(2) an organization that:
66	68		(A) is organized under the laws of a foreign
67	69		government; or
68	70		(B) has its principal place of business outside
69	71		of the United States;
70	72		(3) an organization in which a significant interest or
71	73		of which substantial control is directly or indirectly held or
72	74		capable of being exercised by:
73	75		(A) an individual who is not a citizen or lawful
74	76		permanent resident of the United States; or
75	77		(B) a governmental entity of a foreign
76	78		government; or
77	79		(4) a governmental entity of a foreign government.
78	80		(b) A person described by Subsection (a) shall report to the
79	81		attorney general any interest in real property acquired or sold by
80	82		the person not later than the 90th day after the date of the
81	83		acquisition or sale that is the subject of the report.
82	84		(b-1) A person described by Subsection (a) shall, not later
83	85		than April 1, 2026, report to the attorney general any interest in
84	86		agricultural land or other real property held by the person on
85	87		September 1, 2025. This subsection expires September 1, 2029.
86	88		(c) A report under this section must:
87	89		(1) identify the person holding, acquiring, or selling
88	90		the interest in real property that is the subject of the report; and
89	91		(2) include any other relevant information required by
90	92		the attorney general.
91	93		(d) The attorney general shall prescribe a form for the
92	94		report required by this section.
93	95		(e) A person commits an offense if the person intentionally
94	96		or knowingly:
95	97		(1) fails to report an interest in real property held,
96	98		acquired, or sold by the person as required by this section; or
97	99		(2) makes a report under this section that conceals or
98	100		falsely represents the identity of a person holding, acquiring, or
99	101		selling an interest in real property.
100	102		(f) An offense under this section is a state jail felony.
101	103		Sec. 5.253. PROHIBITION ON HOLDING OR ACQUISITION OF
102	104		INTEREST IN AGRICULTURAL LAND BY CERTAIN PERSONS. (a) Subject to
103	105		Subsection (b) and notwithstanding any other law, the following
104	106		persons may not hold or acquire an interest in agricultural land in
105	107		this state:
106	108		(1) an individual citizen or resident of a country
107	109		that is subject to an arms embargo under 22 C.F.R. Section 126.1 who
108	110		is:
109	111		(A) not a citizen of the United States; and
110	112		(B) not a resident of this state;
111	113		(2) a governmental entity of or organization organized
112	114		under the law of a country that is subject to an arms embargo under
113	115		22 C.F.R. Section 126.1;
114	116		(3) an organization in which a significant interest or
115	117		of which substantial control is directly or indirectly held or
116	118		capable of being exercised by an individual, organization, or
117	119		governmental entity described by Subdivision (1) or (2);
118	120		(4) an entity of particular concern designated in the
119	121		United States secretary of state's most recent designations under
120	122		the International Religious Freedom Act of 1998 (22 U.S.C. Section
121	123		6401 et seq.); or
122	124		(5) an agent, trustee, or other fiduciary of an
123	125		individual, organization, or entity described by this subsection.
124	126		(a-1) Notwithstanding Subsection (a), a person described by
125	127		Subsection (a) may continue to hold an interest in agricultural
126	128		land acquired before September 1, 2025, until September 1, 2027,
127	129		but must divest the person's interest in the agricultural land
128	130		before that date. This subsection expires January 1, 2028.
129	131		(b) An individual who holds an interest in agricultural land
130	132		in this state while a resident of this state is not required to
131	133		divest the individual's interest in the agricultural land before
132	134		the second anniversary of the date the individual no longer resides
133	135		in this state if the individual's change in residence makes the
134	136		individual ineligible to hold an interest in agricultural land
135	137		under Subsection (a).
136	138		Sec. 5.254. PROHIBITION ON HOLDING OR ACQUISITION OF
137	139		INTEREST IN ANY REAL PROPERTY BY CERTAIN ORGANIZATIONS. (a)
138	140		Notwithstanding any other law, an organization that is under the
139	141		control of an individual, organization, or entity described by
140	142		Section 5.253(a) may not hold or acquire an interest in any real
141	143		property in this state.
142	144		(b) A person may not hold or acquire any interest in real
143	145		property in this state as an agent, trustee, or other fiduciary of
144	146		an organization described by Subsection (a).
145	147		(c) Notwithstanding Subsections (a) and (b), a person
146	148		described by Subsection (a) or (b) may continue to hold an interest
147	149		in real property acquired before September 1, 2025, until September
148	150		1, 2027, but must divest the person's interest in the real property
149	151		before that date. This subsection expires January 1, 2028.
150	152		Sec. 5.255. ATTORNEY GENERAL ENFORCEMENT; FORCED SALE. (a)
151	153		If the attorney general receives a report of a violation of Section
152	154		5.253 or 5.254 from the office of agricultural intelligence under
153	155		Section 12.052, Agriculture Code, or any other person, the attorney
154	156		general:
155	157		(1) may issue subpoenas requiring the appearance of
156	158		witnesses, production of relevant records, or giving of relevant
157	159		testimony; and
158	160		(2) if the attorney general determines that a
159	161		violation of Section 5.253 or 5.254 has occurred, shall bring an
160	162		action as provided by Subsection (b).
161	163		(b) If the attorney general determines that a person holds
162	164		an interest in real property in this state in violation of Section
163	165		5.253 or 5.254, the attorney general shall bring an action in a
164	166		district court in a county in which all or part of the real property
165	167		is located.
166	168		(c) If the district court finds that the interest in real
167	169		property that is the subject of the action is held in violation of
168	170		Section 5.253 or 5.254, the court shall enter an order that:
169	171		(1) states the court's finding;
170	172		(2) divests the person's interest in the real
171	173		property; and
172	174		(3) directs the sheriff or constable for each county
173	175		where any part of the real property is located to seize and conduct
174	176		a public sale of the property in the manner that similar property is
175	177		sold under execution.
176	178		(d) The attorney general shall record in the real property
177	179		records of each county in which any part of the real property is
178	180		located:
179	181		(1) notice of the filing of the action; and
180	182		(2) a copy of the district court's order under
181	183		Subsection (c).
182	184		Sec. 5.256. OFFENSES. (a) A person commits an offense if
183	185		the person intentionally or knowingly holds or acquires an interest
184	186		in real property in this state in violation of Section 5.253 or
185	187		5.254.
186	188		(b) An individual director, officer, agent, or employee of
187	189		an organization described by Section 5.253(a) or 5.254(a) commits
188	190		an offense if the individual intentionally or knowingly causes the
189	191		organization to hold or acquire an interest in real property in this
190	192		state in violation of Section 5.253 or 5.254.
191	193		(c) An offense under this section is a state jail felony.
192	194		Sec. 5.257. VALIDITY OF TITLE NOT AFFECTED. The validity of
193	195		title to real property in this state held by a person who is not
194	196		prohibited by this subchapter from acquiring or holding an interest
195	197		in the property is not affected by this subchapter because of a
196	198		violation of Section 5.253 or 5.254 by a former owner or holder of
197	199		an interest in the property.
198	200		Sec. 5.258. NO DUTY TO INQUIRE. This subchapter does not
199	201		require a person to determine or inquire into whether another
200	202		person is or may be subject to this subchapter.
201	203		SECTION 4. Chapter 12, Agriculture Code, is amended by
202	204		adding Section 12.052 to read as follows:
203	205		Sec. 12.052. AGRICULTURAL INTELLIGENCE OFFICE. (a) The
204	206		department shall establish and maintain an agricultural
205	207		intelligence office that operates under the direction of the
206	208		commissioner.
207	209		(b) The agricultural intelligence office:
208	210		(1) shall collect and analyze information concerning
209	211		the holding or acquisition of agricultural land in this state in
210	212		violation of Subchapter H, Chapter 5, Property Code;
211	213		(2) shall administer and enforce the provisions of
212	214		Subchapter H, Chapter 5, Property Code, with respect to
213	215		agricultural land;
214	216		(3) shall report to the attorney general a violation
215	217		of Subchapter H, Chapter 5, Property Code, if the office determines
216	218		that a violation has occurred with respect to agricultural land;
217	219		and
218	220		(4) may designate employees who are peace officers to
219	221		perform the duties provided under this subsection.
220	222		SECTION 5. This Act takes effect September 1, 2025.