89R8288 DRS-D
By: Leo Wilson H.B. No. 2628
A BILL TO BE ENTITLED
AN ACT
relating to the purchase of or acquisition of title to real property
by foreign organizations.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. 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 2. Chapter 5, Property Code, is amended by adding
Subchapter H to read as follows:
SUBCHAPTER H. PURCHASE OF OR ACQUISITION OF TITLE TO REAL PROPERTY
BY FOREIGN ORGANIZATIONS
Sec. 5.251. DEFINITIONS. In this subchapter, "governing
authority," "governing person," and "organization" have the
meanings assigned by Section 1.002, Business Organizations Code.
Sec. 5.252. ORGANIZATION UNDER CONTROL OF INDIVIDUAL OR
ANOTHER ORGANIZATION. (a) For purposes of this subchapter, an
organization is under the control of an individual or another
organization if the controlling individual or organization is
authorized to:
(1) direct the activities of the controlled
organization;
(2) make or direct others to make legal commitments on
behalf of the controlled organization; or
(3) hire and fire a principal decision maker of the
controlled organization.
(b) The authority of the controlling individual or
organization under Subsection (a) may derive from:
(1) exercise of a voting ownership interest of the
controlled organization sufficient to elect a governing person or
governing authority of the controlled organization to exercise on
the controlling individual's or organization's behalf the authority
described by Subsection (a); or
(2) a financial, legal, practical, contractual, or
other arrangement that functionally enables the controlling
individual or organization to exercise the authority described by
Subsection (a).
Sec. 5.253. PROHIBITION ON PURCHASE OF OR ACQUISITION OF
TITLE TO REAL PROPERTY. Notwithstanding any other law, the
following may not purchase or otherwise acquire title to real
property in this state:
(1) 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; or
(2) an organization that is owned by or under the
control of:
(A) an organization described by Subdivision
(1);
(B) an individual who is not a citizen or lawful
permanent resident of the United States; or
(C) a foreign government.
Sec. 5.2531. INTEREST ACQUIRED BEFORE SEPTEMBER 1, 2025.
Notwithstanding Section 5.253, a person described by that section
may continue to hold an interest in real property acquired before
September 1, 2025, until March 1, 2026, but must divest the person's
interest in the real property before that date. This section
expires January 1, 2027.
SECTION 3. This Act takes effect September 1, 2025.