Texas 2025 - 89th Regular

Texas House Bill HB2968 Compare Versions

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1	1	89R8414 SCR-D
2	2	By: Talarico H.B. No. 2968
3	3
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5	5
6	6
7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to single-family homes held by corporate owners for rental
10	10	purposes; requiring information by and registration of certain
11	11	corporate owners; authorizing a fee and civil penalty.
12	12	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
13	13	SECTION 1. Subtitle C, Title 5, Business & Commerce Code, is
14	14	amended by adding Chapter 121 to read as follows:
15	15	CHAPTER 121. REGISTRATION REQUIREMENT FOR CORPORATE OWNERS OF
16	16	MULTIPLE SINGLE-FAMILY HOMES
17	17	Sec. 121.001. DEFINITIONS. In this chapter:
18	18	(1) "Corporate owner" means a corporation, limited or
19	19	general partnership, limited liability company, business trust,
20	20	investment asset manager, real estate investment trust, joint
21	21	venture, joint stock company, or bank that holds an interest in
22	22	multiple single-family homes in this state that are offered or used
23	23	as a rental property to produce income directly or indirectly from a
24	24	residential tenant. The term includes an entity engaged in the
25	25	business of investing the pooled capital of investors in financial
26	26	securities.
27	27	(2) "Governing authority" has the meaning assigned by
28	28	Section 1.002, Business Organizations Code.
29	29	(3) "Officer" has the meaning assigned by Section
30	30	1.002, Business Organizations Code.
31	31	(4) "Rental property" means real property used or
32	32	intended to be used:
33	33	(A) as a primary residence for 30 or more
34	34	consecutive days by a residential tenant under an oral or written
35	35	lease or rental agreement; or
36	36	(B) for occupancy for tourist or transient
37	37	accommodations for fewer than 30 consecutive days, where the
38	38	property does not serve as a residential tenant's primary
39	39	residence.
40	40	(5) "Residential tenant" means any person who does not
41	41	own but is authorized to use a single-family home in exchange for
42	42	consideration paid to a corporate owner or to a third-party lessor,
43	43	sublessor, management company, managing agent, or operator of a
44	44	hosting platform that derives revenues, including booking fees or
45	45	advertising revenues, from providing or maintaining a marketplace
46	46	that is used to facilitate the rental of a single-family home.
47	47	(6) "Single-family home" means a residential
48	48	structure with a yard or public way on not less than two sides that
49	49	is separated from any adjacent housing unit by a ground-to-roof
50	50	wall, does not share a heating, air-conditioning, or utility system
51	51	or a backyard, and does not have a housing unit located above or
52	52	below. The term does not include a mobile home or manufactured
53	53	home.
54	54	Sec. 121.002. REGISTRATION STATEMENT. (a) A corporate
55	55	owner that owns single-family homes in this state that are used or
56	56	offered for use as a rental property shall register with the
57	57	secretary of state by filing a registration statement that
58	58	contains:
59	59	(1) the name under which the corporate owner conducts
60	60	business and the address of the corporate owner;
61	61	(2) the state or country of incorporation, formation,
62	62	registration, or organization;
63	63	(3) the location of the headquarters or principal
64	64	office of the corporate owner;
65	65	(4) the type of business entity of the corporate
66	66	owner;
67	67	(5) the number of single-family homes in this state
68	68	the corporate owner owns; and
69	69	(6) the name and mailing address of an officer or
70	70	person serving as part of the governing authority of the corporate
71	71	owner.
72	72	(b) The secretary of state may charge a reasonable fee for
73	73	issuance of a certificate acknowledging registration under this
74	74	section.
75	75	(c) A registration certificate expires on the first
76	76	anniversary of its date of issuance. A corporate owner may renew a
77	77	registration certificate by filing a renewal application, in the
78	78	form prescribed by the secretary of state, and paying a reasonable
79	79	renewal fee in an amount set by the secretary of state.
80	80	Sec. 121.003. UPDATE OF REGISTRATION STATEMENT. A
81	81	corporate owner shall update information contained in the
82	82	registration statement not later than the 60th day after the date on
83	83	which the information changes.
84	84	Sec. 121.004. CIVIL PENALTY. (a) A corporate owner who
85	85	fails to comply with this chapter is liable to this state for a
86	86	civil penalty in the amount of $500 for each day of the violation.
87	87	(b) The attorney general may bring an action to recover a
88	88	civil penalty under this section.
89	89	Sec. 121.005. REGISTRY. (a) The secretary of state shall
90	90	establish and post on the secretary's Internet website a searchable
91	91	registry of corporate owners registered under Section 121.002(a).
92	92	(b) The registry must include:
93	93	(1) a search feature that allows a person searching
94	94	the registry to identify a specific corporate owner; and
95	95	(2) for each corporate owner, the information in the
96	96	registration statement filed under Section 121.002(a).
97	97	Sec. 121.006. RULES. The secretary of state shall adopt the
98	98	rules necessary to implement this chapter.
99	99	SECTION 2. Subchapter C, Chapter 86, Education Code, is
100	100	amended by adding Section 86.531 to read as follows:
101	101	Sec. 86.531. ANNUAL STUDY AND REPORT ON SINGLE-FAMILY HOME
102	102	PURCHASES, RENTALS, AND SALES BY CERTAIN CORPORATE OWNERS. (a) In
103	103	this section, "corporate owner," "rental property," and
104	104	"single-family home" have the meanings assigned by Section 121.001,
105	105	Business & Commerce Code.
106	106	(b) Using existing available data, including data from the
107	107	secretary of state, and deed records, the center shall compile
108	108	information related to corporate owners' purchases, rentals, and
109	109	sales of single-family homes in this state for each calendar year.
110	110	The information must include:
111	111	(1) the number of single-family homes each corporate
112	112	owner had an interest in during the calendar year;
113	113	(2) the number of single-family homes purchased by
114	114	each corporate owner during the calendar year and the total number
115	115	purchased in each county and municipality;
116	116	(3) the number of single-family homes described by
117	117	Subdivisions (1) and (2) acquired through foreclosure;
118	118	(4) the number of single-family homes described by
119	119	Subdivisions (1) and (2) sold by each corporate owner during the
120	120	calendar year;
121	121	(5) the number of single-family homes described by
122	122	Subdivisions (1) and (2) used as a rental property during the
123	123	calendar year;
124	124	(6) the municipality and county in which each
125	125	single-family home described by Subdivisions (1) and (2) is
126	126	located;
127	127	(7) the appraised value of each single-family home
128	128	described by Subdivisions (1) and (2);
129	129	(8) the name, assumed name, business association type,
130	130	registered office address, telephone number, and registered agent
131	131	of each corporate owner of a single-family home; and
132	132	(9) the name, address, and contact information for the
133	133	landlord or third-party lessor, sublessor, management company, or
134	134	managing agent of each single-family home described by Subdivision
135	135	(5).
136	136	(c) In addition to the information required by Subsection
137	137	(b), the center may compile additional information at the
138	138	recommendation of the legislature or that the center determines is
139	139	relevant based on market trends.
140	140	(d) Not later than June 1 of each year, the center shall
141	141	submit a report to the lieutenant governor, the speaker of the house
142	142	of representatives, and each member of the legislature. The report
143	143	must contain:
144	144	(1) a summary of the information compiled under
145	145	Subsection (b) for the preceding calendar year;
146	146	(2) an assessment of any trends or patterns relating
147	147	to the relative number of purchases by corporate owners, including
148	148	whether the corporate owners may be classified into any readily
149	149	observable groups based on the number of purchases or other
150	150	appropriate criteria; and
151	151	(3) an analysis of:
152	152	(A) the impact of corporate owners on the cost of
153	153	housing;
154	154	(B) any advantages and disadvantages corporate
155	155	owners have over individual buyers in the real estate market;
156	156	(C) the impact of corporate owners on the cost
157	157	and availability of single-family home rentals; and
158	158	(D) the impact of corporate owners on the
159	159	availability of single-family homes for purchase.
160	160	(e) After completing the initial report under this section,
161	161	the center may compile information from any calendar years
162	162	preceding 2025 to create and submit reports for those years that
163	163	include the information listed in Subsections (b) and (d).
164	164	SECTION 3. Chapter 12, Property Code, is amended by adding
165	165	Section 12.00125 to read as follows:
166	166	Sec. 12.00125. INSTRUMENTS CONCERNING SINGLE-FAMILY HOMES
167	167	PURCHASED BY CORPORATE OWNERS. (a) In this section, "corporate
168	168	owner" and "single-family home" have the meanings assigned by
169	169	Section 121.001, Business & Commerce Code.
170	170	(b) If a corporate owner purchases a single-family home in
171	171	this state, the county clerk in the county in which the
172	172	single-family home is located may not record an instrument
173	173	conveying title to the home unless:
174	174	(1) the corporate owner provides to the county clerk a
175	175	copy of the registration certificate issued under Section 121.002,
176	176	Business & Commerce Code;
177	177	(2) the name of the grantee on the instrument
178	178	conveying title to the home matches the name of the corporate owner
179	179	on the registration certificate;
180	180	(3) the instrument conveying title to the home:
181	181	(A) contains the name and mailing address of an
182	182	officer or governing person of the corporate owner; and
183	183	(B) clearly states that the single-family home is
184	184	not the primary residence of the grantee; and
185	185	(4) the corporate owner provides to the county clerk a
186	186	sworn affidavit signed by a duly authorized officer or agent of the
187	187	corporate owner stating that the information required to be
188	188	included in the instrument conveying title under Subdivision (3) is
189	189	also included in the corporate owner registry established under
190	190	Section 121.005, Business & Commerce Code.
191	191	SECTION 4. As soon as practicable after the effective date
192	192	of this Act, the Texas Real Estate Research Center at Texas A&M
193	193	University shall take any actions necessary to implement Section
194	194	86.531, Education Code, as added by this Act, and submit the initial
195	195	report required under Section 86.531(d), Education Code, as added
196	196	by this Act, not later than June 1, 2026.
197	197	SECTION 5. (a) As soon as practicable after the effective
198	198	date of this Act, the secretary of state shall adopt rules necessary
199	199	to implement Chapter 121, Business & Commerce Code, as added by this
200	200	Act.
201	201	(b) Notwithstanding Section 121.002, Business & Commerce
202	202	Code, as added by this Act, a corporate owner is not required to
203	203	comply with that section until January 1, 2026.
204	204	SECTION 6. (a) Except as provided by Subsection (b) of this
205	205	section, this Act takes effect September 1, 2025.
206	206	(b) Section 12.00125, Property Code, as added by this Act,
207	207	takes effect February 1, 2026.