Texas 2025 - 89th Regular

Texas House Bill HB2628 Compare Versions

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

Old	New	Differences
1	1	89R8288 DRS-D
2	2	By: Leo Wilson H.B. No. 2628
3	3
4	4
5	5
6	6
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 foreign organizations.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Section 5.005, Property Code, is amended to read
13	13	as follows:
14	14	Sec. 5.005. ALIENS. Except as provided by Subchapter H, an
15	15	[An] alien has the same real and personal property rights as a
16	16	United States citizen.
17	17	SECTION 2. Chapter 5, Property Code, is amended by adding
18	18	Subchapter H to read as follows:
19	19	SUBCHAPTER H. PURCHASE OF OR ACQUISITION OF TITLE TO REAL PROPERTY
20	20	BY FOREIGN ORGANIZATIONS
21	21	Sec. 5.251. DEFINITIONS. In this subchapter, "governing
22	22	authority," "governing person," and "organization" have the
23	23	meanings assigned by Section 1.002, Business Organizations Code.
24	24	Sec. 5.252. ORGANIZATION UNDER CONTROL OF INDIVIDUAL OR
25	25	ANOTHER ORGANIZATION. (a) For purposes of this subchapter, an
26	26	organization is under the control of an individual or another
27	27	organization if the controlling individual or organization is
28	28	authorized to:
29	29	(1) direct the activities of the controlled
30	30	organization;
31	31	(2) make or direct others to make legal commitments on
32	32	behalf of the controlled organization; or
33	33	(3) hire and fire a principal decision maker of the
34	34	controlled organization.
35	35	(b) The authority of the controlling individual or
36	36	organization under Subsection (a) may derive from:
37	37	(1) exercise of a voting ownership interest of the
38	38	controlled organization sufficient to elect a governing person or
39	39	governing authority of the controlled organization to exercise on
40	40	the controlling individual's or organization's behalf the authority
41	41	described by Subsection (a); or
42	42	(2) a financial, legal, practical, contractual, or
43	43	other arrangement that functionally enables the controlling
44	44	individual or organization to exercise the authority described by
45	45	Subsection (a).
46	46	Sec. 5.253. PROHIBITION ON PURCHASE OF OR ACQUISITION OF
47	47	TITLE TO REAL PROPERTY. Notwithstanding any other law, the
48	48	following may not purchase or otherwise acquire title to real
49	49	property in this state:
50	50	(1) an organization that:
51	51	(A) is organized under the laws of a foreign
52	52	government; or
53	53	(B) has its principal place of business outside
54	54	of the United States; or
55	55	(2) an organization that is owned by or under the
56	56	control of:
57	57	(A) an organization described by Subdivision
58	58	(1);
59	59	(B) an individual who is not a citizen or lawful
60	60	permanent resident of the United States; or
61	61	(C) a foreign government.
62	62	Sec. 5.2531. INTEREST ACQUIRED BEFORE SEPTEMBER 1, 2025.
63	63	Notwithstanding Section 5.253, a person described by that section
64	64	may continue to hold an interest in real property acquired before
65	65	September 1, 2025, until March 1, 2026, but must divest the person's
66	66	interest in the real property before that date. This section
67	67	expires January 1, 2027.
68	68	SECTION 3. This Act takes effect September 1, 2025.