Texas 2025 - 89th Regular

Texas House Bill HB402 Compare Versions

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

Old	New	Differences
1	1	89R1157 DRS-F
2	2	By: Cain H.B. No. 402
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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 certain aliens or foreign entities.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Section 64.001(a), Civil Practice and Remedies
13	13	Code, is amended to read as follows:
14	14	(a) A court of competent jurisdiction may appoint a
15	15	receiver:
16	16	(1) in an action by a vendor to vacate a fraudulent
17	17	purchase of property;
18	18	(2) in an action by a creditor to subject any property
19	19	or fund to the creditor's [his] claim;
20	20	(3) in an action between partners or others jointly
21	21	owning or interested in any property or fund;
22	22	(4) in an action by a mortgagee for the foreclosure of
23	23	the mortgage and sale of the mortgaged property;
24	24	(5) for a corporation that is insolvent, is in
25	25	imminent danger of insolvency, has been dissolved, or has forfeited
26	26	its corporate rights; [or]
27	27	(6) in an action by the attorney general under
28	28	Subchapter H, Chapter 5, Property Code; or
29	29	(7) in any other case in which a receiver may be
30	30	appointed under the rules of equity.
31	31	SECTION 2. Section 5.005, Property Code, is amended to read
32	32	as follows:
33	33	Sec. 5.005. ALIENS. Except as provided by Subchapter H, an
34	34	[An] alien has the same real and personal property rights as a
35	35	United States citizen.
36	36	SECTION 3. Chapter 5, Property Code, is amended by adding
37	37	Subchapter H to read as follows:
38	38	SUBCHAPTER H. PURCHASE OF OR ACQUISITION OF TITLE TO REAL PROPERTY
39	39	BY CERTAIN FOREIGN INDIVIDUALS OR ENTITIES
40	40	Sec. 5.251. DEFINITIONS. In this subchapter:
41	41	(1) "Agricultural land" means land that is located in
42	42	this state and that is suitable for:
43	43	(A) use in production of plants and fruits grown
44	44	for human or animal consumption, or plants grown for the production
45	45	of fibers, floriculture, viticulture, horticulture, or planting
46	46	seed; or
47	47	(B) domestic or native farm or ranch animals kept
48	48	for use or profit.
49	49	(2) "Control" means ownership of at least 50 percent
50	50	of the voting ownership interest of an organization necessary to
51	51	elect a governing person or governing authority of an organization.
52	52	(3) "Designated country" means a country identified by
53	53	the United States Director of National Intelligence as a country
54	54	that poses a risk to the national security of the United States in
55	55	each of the three most recent Annual Threat Assessments of the U.S.
56	56	Intelligence Community issued pursuant to Section 108B, National
57	57	Security Act of 1947 (50 U.S.C. Section 3043b).
58	58	(4) "Governing authority," "governing person," and
59	59	"organization" have the meanings assigned by Section 1.002,
60	60	Business Organizations Code.
61	61	(5) "Real property" means:
62	62	(A) agricultural land;
63	63	(B) an improvement located on agricultural land;
64	64	(C) a mine or quarry;
65	65	(D) a mineral in place; or
66	66	(E) standing timber.
67	67	Sec. 5.252. EXCEPTIONS: UNITED STATES CITIZENS AND LAWFUL
68	68	PERMANENT RESIDENTS; RESIDENCE HOMESTEAD PROPERTY. (a) This
69	69	subchapter does not apply to:
70	70	(1) an individual who is a citizen or lawful permanent
71	71	resident of the United States, including an individual who is a
72	72	citizen of a foreign country; or
73	73	(2) a company or other entity that is owned by or under
74	74	the control of one or more individuals described by Subdivision
75	75	(1).
76	76	(b) This subchapter does not apply to real property that is
77	77	intended for use as an individual's residence homestead, as defined
78	78	by Section 11.13(j), Tax Code.
79	79	(c) This subchapter does not apply to a leasehold interest
80	80	in land or improvements constructed upon a leasehold.
81	81	Sec. 5.253. PROHIBITION ON PURCHASE OF OR ACQUISITION OF
82	82	TITLE TO REAL PROPERTY. Except as provided by Section 5.252 and
83	83	notwithstanding any other law, the following may not purchase or
84	84	otherwise acquire title to real property in this state:
85	85	(1) a governmental entity of a designated country;
86	86	(2) a company or other entity that is:
87	87	(A) headquartered in a designated country;
88	88	(B) directly or indirectly under the control of
89	89	the government of a designated country; or
90	90	(C) owned by or under the control of one or more
91	91	individuals who are citizens of a designated country;
92	92	(3) a company or other entity that is owned by or under
93	93	the control of a company or entity described by Subdivision (2); or
94	94	(4) an individual who is a citizen of a designated
95	95	country.
96	96	Sec. 5.254. ATTORNEY GENERAL ENFORCEMENT. If the attorney
97	97	general has a reasonable suspicion that the purchase of or
98	98	acquisition of title to real property in this state by an individual
99	99	or entity in violation of this subchapter creates a risk to the
100	100	health, safety, and welfare of the public, the attorney general may
101	101	bring an action to enforce this subchapter in a district court in
102	102	the county where all or part of the real property that is the
103	103	subject of the violation is located.
104	104	Sec. 5.255. DISCOVERY; SECRETARY OF STATE INTERROGATORIES
105	105	AND RECORDS. (a) The attorney general may conduct discovery in an
106	106	action brought under Section 5.254.
107	107	(b) The secretary of state shall on request by the attorney
108	108	general:
109	109	(1) serve interrogatories on an individual or entity
110	110	as necessary to determine the ownership or control of a company or
111	111	other entity that is the subject of an action by the attorney
112	112	general under Section 5.254; and
113	113	(2) provide to the attorney general all records held
114	114	by the secretary relating to the ownership or control of a company
115	115	or other entity that is the subject of an action by the attorney
116	116	general under Section 5.254.
117	117	Sec. 5.256. DIVESTITURE; APPOINTMENT OF RECEIVER. (a) If
118	118	the district court finds that the real property subject to an action
119	119	brought under Section 5.254 was purchased or otherwise acquired by
120	120	an individual or entity in violation of Section 5.253, the court
121	121	shall enter an order that:
122	122	(1) states the court's finding;
123	123	(2) divests the individual's or entity's interest in
124	124	the real property; and
125	125	(3) appoints a receiver to manage and control the real
126	126	property pending the sale or other disposition of the real
127	127	property.
128	128	(b) On appointment and qualification, a receiver appointed
129	129	under this section has the powers and duties of a receiver under
130	130	Chapter 64, Civil Practice and Remedies Code.
131	131	SECTION 4. As soon as practicable after the effective date
132	132	of this Act, the attorney general shall adopt rules for the
133	133	implementation of Subchapter H, Chapter 5, Property Code, as added
134	134	by this Act.
135	135	SECTION 5. The changes in law made by this Act apply only to
136	136	the purchase of or other acquisition of title to real property on or
137	137	after the effective date of this Act. The purchase of or other
138	138	acquisition of title to real property before the effective date of
139	139	this Act is governed by the law in effect immediately before the
140	140	effective date of this Act, and that law is continued in effect for
141	141	that purpose.
142	142	SECTION 6. This Act takes effect September 1, 2025.