Texas 2025 - 89th Regular

Texas House Bill HB4597 Compare Versions

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

Old	New	Differences
1	1	89R3201 DRS-F
2	2	By: Cain H.B. No. 4597
3	3
4	4
5	5
6	6
7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to interests in real property held or acquired by or on
10	10	behalf of certain foreign individuals or entities and the authority
11	11	of the attorney general to acquire the property by eminent domain;
12	12	establishing the homeland security review committee; creating a
13	13	criminal offense.
14	14	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
15	15	SECTION 1. Section 64.001(a), Civil Practice and Remedies
16	16	Code, is amended to read as follows:
17	17	(a) A court of competent jurisdiction may appoint a
18	18	receiver:
19	19	(1) in an action by a vendor to vacate a fraudulent
20	20	purchase of property;
21	21	(2) in an action by a creditor to subject any property
22	22	or fund to the creditor's [his] claim;
23	23	(3) in an action between partners or others jointly
24	24	owning or interested in any property or fund;
25	25	(4) in an action by a mortgagee for the foreclosure of
26	26	the mortgage and sale of the mortgaged property;
27	27	(5) for a corporation that is insolvent, is in
28	28	imminent danger of insolvency, has been dissolved, or has forfeited
29	29	its corporate rights; [or]
30	30	(6) in an action by the attorney general under
31	31	Subchapter H, Chapter 5, Property Code; or
32	32	(7) in any other case in which a receiver may be
33	33	appointed under the rules of equity.
34	34	SECTION 2. Section 5.005, Property Code, is amended to read
35	35	as follows:
36	36	Sec. 5.005. ALIENS. Except as provided by Subchapter H, an
37	37	[An] alien has the same real and personal property rights as a
38	38	United States citizen.
39	39	SECTION 3. Chapter 5, Property Code, is amended by adding
40	40	Subchapter H to read as follows:
41	41	SUBCHAPTER H. HOLDING OR ACQUISITION OF REAL PROPERTY INTEREST BY
42	42	FOREIGN INDIVIDUAL OR ENTITY
43	43	Sec. 5.251. DEFINITIONS. In this subchapter:
44	44	(1) "Agricultural land" means land located in this
45	45	state that is suitable for:
46	46	(A) use in production of plants and fruits grown
47	47	for human or animal consumption, or plants grown for the production
48	48	of fibers, floriculture, viticulture, horticulture, or planting
49	49	seed; or
50	50	(B) domestic or native farm or ranch animals kept
51	51	for use or profit.
52	52	(2) "Committee" means the homeland security review
53	53	committee established under Section 5.252.
54	54	(3) "Control" means the direct or indirect power to
55	55	determine, direct, dictate, or decide important matters affecting
56	56	an organization, including through:
57	57	(A) the ownership of at least 20 percent of the
58	58	total outstanding voting interest in an organization;
59	59	(B) board representation;
60	60	(C) the ability to appoint or discharge a board
61	61	member, officer, director, employee, or contractor;
62	62	(D) proxy voting, a special share, a contractual
63	63	arrangement, a legal obligation, or a formal or informal
64	64	arrangement to act in concert; or
65	65	(E) another means of exercising power.
66	66	(4) "Critical infrastructure" means a facility or site
67	67	in this state for which the committee determines that possession of
68	68	the facility or site or of real property located near the facility
69	69	or site could pose a risk to the security, economy, or public health
70	70	of this state.
71	71	(5) "Foreign adversary" means:
72	72	(A) the People's Republic of China;
73	73	(B) the Russian Federation;
74	74	(C) the Islamic Republic of Iran;
75	75	(D) the Democratic People's Republic of Korea;
76	76	(E) an agency or entity under the control of the
77	77	government of a country described by Paragraphs (A) through (D); or
78	78	(F) an organization wholly or partly owned by or
79	79	under the control of an agency or entity described by Paragraph (E).
80	80	(6) "Organization" has the meaning assigned by Section
81	81	1.002, Business Organizations Code.
82	82	(7) "Real property" means:
83	83	(A) land, including agricultural land;
84	84	(B) an improvement;
85	85	(C) a mine or quarry;
86	86	(D) a mineral in place; or
87	87	(E) standing timber.
88	88	(8) "Wholly or partly owned by or under the control of"
89	89	means:
90	90	(A) for a person that is a publicly traded
91	91	company, that a person has:
92	92	(i) the ability to exercise control over
93	93	the company;
94	94	(ii) access to any material, nonpublic, and
95	95	technical information in the company's possession; or
96	96	(iii) other rights or involvement in
97	97	controlling or participating in the decision-making of the company
98	98	beyond rights or involvement available to a retail investor holding
99	99	an equivalent share of ownership; and
100	100	(B) for a person that is a privately held
101	101	company, that a person has any share of ownership of the company.
102	102	Sec. 5.252. HOMELAND SECURITY REVIEW COMMITTEE. (a) The
103	103	homeland security review committee is established and is composed
104	104	of the following members:
105	105	(1) the governor or the governor's designee;
106	106	(2) the speaker of the house of representatives or the
107	107	speaker's designee;
108	108	(3) the lieutenant governor or the lieutenant
109	109	governor's designee;
110	110	(4) the attorney general or the attorney general's
111	111	designee;
112	112	(5) the adjutant general or the adjutant general's
113	113	designee;
114	114	(6) the commissioner of agriculture or the
115	115	commissioner's designee; and
116	116	(7) any other members that the governor may appoint.
117	117	(b) The committee shall:
118	118	(1) identify the locations of critical infrastructure
119	119	in this state;
120	120	(2) determine the following:
121	121	(A) the distance in miles from the location of
122	122	critical infrastructure within which real property must be located
123	123	to make a transaction involving the property or acquisition of the
124	124	property subject to:
125	125	(i) reporting under Section 5.253(d)(1)(A)
126	126	and prior approval under Section 5.256; or
127	127	(ii) reporting under Section
128	128	5.253(d)(1)(B) and disapproval under Section 5.257;
129	129	(B) the amount of acreage of a parcel of real
130	130	property that makes a transaction or acquisition subject to the
131	131	reporting under Section 5.253(d)(2)(A) and prior approval under
132	132	Section 5.256; and
133	133	(C) the number of parcels of real property that
134	134	makes a transaction or acquisition subject to reporting under
135	135	Section 5.253(d)(2)(B) and prior approval under Section 5.256; and
136	136	(3) by majority vote approve or disapprove a real
137	137	property transaction or acquisition for which the committee's
138	138	determination is required by Section 5.256 or 5.257.
139	139	(c) For purposes of a majority vote of the committee under
140	140	Subsection (b)(3), the governor or the governor's designee is
141	141	entitled to four votes and each other member of the committee is
142	142	entitled to one vote.
143	143	(d) The governor in consultation with the committee shall
144	144	adopt rules to administer this subchapter.
145	145	Sec. 5.253. REPORT OF REAL PROPERTY TRANSACTION OR
146	146	ACQUISITION REQUIRED. (a) For purposes of this subchapter, a
147	147	transaction to acquire an interest in real property includes the
148	148	execution of a lease agreement under which a person required to
149	149	report to the committee under this section takes possession of the
150	150	property.
151	151	(b) A person described by Subsection (c) shall report to the
152	152	committee:
153	153	(1) a transaction to acquire an interest in real
154	154	property described by Subsection (d), not later than the 30th day
155	155	before the proposed closing date of the transaction; or
156	156	(2) acquisition of an interest in real property
157	157	described by Subsection (d) by any means, not later than the 30th
158	158	day after the date of the acquisition.
159	159	(c) The following persons shall submit a report to the
160	160	committee as required by Subsection (b):
161	161	(1) an individual who is:
162	162	(A) domiciled in a country that is a foreign
163	163	adversary; and
164	164	(B) not a citizen or lawful permanent resident of
165	165	the United States; or
166	166	(2) an organization that:
167	167	(A) is organized under the laws of a country that
168	168	is a foreign adversary;
169	169	(B) has its principal place of business in a
170	170	country that is a foreign adversary; or
171	171	(C) is wholly or partly owned by or under the
172	172	control of:
173	173	(i) an organization described by Section
174	174	5.251(5)(F); or
175	175	(ii) an organization wholly or partly owned
176	176	by or under the control of an individual or organization described
177	177	by this subsection.
178	178	(d) A person required by Subsection (b) to submit a report
179	179	under this section shall report a transaction or acquisition
180	180	involving real property that:
181	181	(1) is located:
182	182	(A) more than 25 miles from critical
183	183	infrastructure but within the distance determined by the committee
184	184	under Section 5.252(b)(2)(A)(i); or
185	185	(B) outside the distance determined by the
186	186	committee under Section 5.252(b)(2)(A)(i) but within the distance
187	187	determined by the committee under Section 5.252(b)(2)(A)(ii);
188	188	(2) consists of:
189	189	(A) an amount of acreage that is equal to or more
190	190	than the amount determined by the committee under Section
191	191	5.252(b)(2)(B); or
192	192	(B) a number of parcels that is equal to or more
193	193	than the number determined by the committee under Section
194	194	5.252(b)(2)(C);
195	195	(3) is zoned for commercial use; or
196	196	(4) consists of multifamily housing with three or more
197	197	residential units.
198	198	(e) A report under this section must:
199	199	(1) identify:
200	200	(A) the person holding or acquiring the interest
201	201	in real property that is the subject of the report;
202	202	(B) the countries of citizenship and domicile of
203	203	the person described by Paragraph (A); and
204	204	(C) if the person is an organization, each person
205	205	with an ownership interest in the organization; and
206	206	(2) include:
207	207	(A) a description of the real property;
208	208	(B) the location of the real property;
209	209	(C) the interest held or to be acquired; and
210	210	(D) any other relevant information required by
211	211	the committee.
212	212	Sec. 5.2531. TEMPORARY PROVISION: REPORT OF REAL PROPERTY
213	213	HELD ON SEPTEMBER 1, 2025, REQUIRED. (a) Not later than January 1,
214	214	2026, a foreign adversary shall report to the committee any
215	215	interest in real property held by the foreign adversary on
216	216	September 1, 2025.
217	217	(b) Not later than January 1, 2026, a person described by
218	218	Section 5.253(c) shall report to the committee any interest held by
219	219	the person on September 1, 2025, in real property described by:
220	220	(1) Section 5.253(d); or
221	221	(2) Section 5.255(a).
222	222	(c) This section expires September 1, 2026.
223	223	Sec. 5.254. PROHIBITION ON HOLDING OR ACQUIRING INTEREST IN
224	224	REAL PROPERTY BY FOREIGN ADVERSARY. (a) Except as provided by
225	225	Subsection (d) and notwithstanding any other law, a foreign
226	226	adversary may not hold or acquire an interest in real property in
227	227	this state.
228	228	(b) A foreign adversary that acquires an interest in real
229	229	property by any means shall:
230	230	(1) not later than the 30th day after the date of the
231	231	acquisition, report the acquisition to the committee; and
232	232	(2) not later than the 180th day after the date of the
233	233	acquisition, divest the foreign adversary's interest in the real
234	234	property.
235	235	(c) A report required by Subsection (b) must include the
236	236	information described by Section 5.253(e).
237	237	(d) Notwithstanding Subsection (a), a foreign adversary may
238	238	continue to hold an interest in real property acquired before
239	239	September 1, 2025.
240	240	Sec. 5.255. PROHIBITION ON HOLDING OR ACQUIRING INTEREST IN
241	241	CERTAIN REAL PROPERTY BY CERTAIN PERSONS. (a) Except as provided
242	242	by Subsection (d) and notwithstanding any other law, a person
243	243	described by Section 5.253(c) may not hold or acquire an interest
244	244	in:
245	245	(1) agricultural land; or
246	246	(2) real property that:
247	247	(A) contains critical infrastructure; or
248	248	(B) is located within 25 miles of critical
249	249	infrastructure.
250	250	(b) A person described by Section 5.253(c) that acquires an
251	251	interest in agricultural land or real property described by
252	252	Subsection (a)(2) shall:
253	253	(1) not later than the 30th day after the date of the
254	254	acquisition, report the acquisition to the committee; and
255	255	(2) not later than the 180th day after the date of the
256	256	acquisition, divest the person's interest in the real property.
257	257	(c) A report required by Subsection (b) must include the
258	258	information described by Section 5.253(e).
259	259	(d) Notwithstanding Subsection (a), a person described by
260	260	Section 5.253(c) may continue to hold an interest in real property
261	261	described by Subsection (b) that the person acquired before
262	262	September 1, 2025.
263	263	Sec. 5.256. ACQUISITION OF CERTAIN REAL PROPERTY BY CERTAIN
264	264	PERSONS: COMMITTEE PRIOR APPROVAL REQUIRED. (a) Except as
265	265	provided by Section 5.258, unless the person receives prior written
266	266	approval from the committee, a person described by Section 5.253(c)
267	267	may not hold or acquire an interest in real property that:
268	268	(1) is located more than 25 miles from critical
269	269	infrastructure but within the distance determined by the committee
270	270	under Section 5.252(b)(2)(A)(i); or
271	271	(2) consists of:
272	272	(A) an amount of acreage that is equal to or more
273	273	than the amount determined by the committee under Section
274	274	5.252(b)(2)(B); or
275	275	(B) a number of parcels that is equal to or more
276	276	than the number determined by the committee under Section
277	277	5.252(b)(2)(C).
278	278	(b) A person described by Section 5.253(c) that acquires an
279	279	interest in real property described by Subsection (a) shall:
280	280	(1) not later than the 30th day after the date of the
281	281	acquisition, report the acquisition to the committee; and
282	282	(2) not later than the 180th day after the date of the
283	283	acquisition, divest the person's interest in the real property.
284	284	(c) A report required by Subsection (b) must include the
285	285	information described by Section 5.253(e).
286	286	Sec. 5.257. ACQUISITION OF CERTAIN REAL PROPERTY BY CERTAIN
287	287	PERSONS: EFFECT OF COMMITTEE PRIOR DISAPPROVAL. (a) Except as
288	288	provided by Section 5.258, if before the closing date of a
289	289	transaction to acquire an interest in real property a person
290	290	described by Section 5.253(c) receives from the committee notice
291	291	that the committee has disapproved the acquisition, a person
292	292	described by Section 5.253(c) may not acquire an interest in real
293	293	property that:
294	294	(1) is located a distance from critical infrastructure
295	295	that is outside the distance determined by the committee under
296	296	Section 5.252(b)(2)(A)(i) but within the distance determined by the
297	297	committee under Section 5.252(b)(2)(A)(ii);
298	298	(2) is zoned for commercial use; or
299	299	(3) consists of multifamily housing with three or more
300	300	residential units.
301	301	(b) A person described by Section 5.253(c) that acquires an
302	302	interest in real property described by Subsection (a) shall:
303	303	(1) not later than the 30th day after the date of the
304	304	acquisition, report the acquisition to the committee; and
305	305	(2) not later than the 180th day after the date of the
306	306	acquisition, divest the person's interest in the real property.
307	307	(c) A report required by Subsection (b) must include the
308	308	information described by Section 5.253(e).
309	309	Sec. 5.258. EXCEPTION: SINGLE-FAMILY HOME HELD OR ACQUIRED
310	310	BY INDIVIDUAL. Sections 5.256, 5.257, and 5.261 do not apply to a
311	311	single-family home held or acquired by an individual described by
312	312	Section 5.253(c)(1).
313	313	Sec. 5.259. INVESTIGATION AND ENFORCEMENT BY ATTORNEY
314	314	GENERAL. (a) The attorney general shall investigate a report
315	315	alleging a violation of this subchapter.
316	316	(b) If the attorney general determines after an
317	317	investigation that a violation of this subchapter has occurred, the
318	318	attorney general shall:
319	319	(1) bring an action under Section 5.260 to enforce
320	320	this subchapter in a district court in the county where all or part
321	321	of the real property that is the subject of the violation is
322	322	located; and
323	323	(2) file a lis pendens notice describing the property
324	324	with the county clerk of each county in which the property is
325	325	located.
326	326	Sec. 5.260. DIVESTITURE; APPOINTMENT OF RECEIVER;
327	327	DISTRIBUTION OF SALE PROCEEDS. (a) If the district court finds
328	328	that the interest in real property subject to an action brought
329	329	under Section 5.259 was acquired by a person in violation of this
330	330	subchapter, the court shall enter an order that:
331	331	(1) states the court's finding;
332	332	(2) divests the person's interest in the real
333	333	property; and
334	334	(3) appoints a receiver to manage and control the real
335	335	property pending the sale or other disposition of the real
336	336	property.
337	337	(b) On appointment and qualification, a receiver appointed
338	338	under this section has the powers and duties of a receiver under
339	339	Chapter 64, Civil Practice and Remedies Code.
340	340	(c) A lienholder is entitled to a credit bid at a sale of
341	341	real property under this section.
342	342	(d) Proceeds from the sale or other disposition of real
343	343	property under an order described by Subsection (a) shall be
344	344	applied first to satisfy any existing liens on the property. The
345	345	remaining proceeds:
346	346	(1) are forfeited to this state; and
347	347	(2) shall be remitted to the comptroller for deposit
348	348	in the general revenue fund.
349	349	(e) The attorney general shall record a copy of an order of
350	350	sale or other disposition of the real property in the real property
351	351	records of each county in which any part of the real property
352	352	subject to the order is located.
353	353	Sec. 5.261. ATTORNEY GENERAL ACQUISITION OF CERTAIN REAL
354	354	PROPERTY BY EMINENT DOMAIN. The committee by majority vote may
355	355	direct the attorney general to initiate an eminent domain
356	356	proceeding under Chapter 21A to acquire real property that is:
357	357	(1) held by a foreign adversary; or
358	358	(2) except as provided by Section 5.258:
359	359	(A) described by Section 5.255, 5.256, or 5.257;
360	360	and
361	361	(B) held by a person described by Section
362	362	5.253(c).
363	363	Sec. 5.262. EVASIVE TRANSACTIONS PROHIBITED. A person may
364	364	not start or complete a transaction for the acquisition of an
365	365	interest in real property in a manner designed for the purpose of
366	366	evading this subchapter.
367	367	Sec. 5.263. OFFENSE. (a) A person commits an offense if
368	368	the person intentionally or knowingly makes a report under this
369	369	subchapter that conceals or falsely represents the identity of a
370	370	person holding or acquiring an interest in real property for the
371	371	purpose of evading this subchapter.
372	372	(b) An offense under this section is a felony of the second
373	373	degree.
374	374	Sec. 5.264. VALIDITY OF TITLE NOT AFFECTED. The validity
375	375	of title to real property in this state held by a person who is not
376	376	prohibited by this subchapter from acquiring or holding an interest
377	377	in the property is not affected by this subchapter because of a
378	378	violation of this subchapter by a former owner or holder of an
379	379	interest in the property.
380	380	Sec. 5.265. NO DUTY TO INQUIRE. This subchapter does not
381	381	require a person to determine or inquire into whether another
382	382	person is or may be subject to this subchapter.
383	383	SECTION 4. Title 4, Property Code, is amended by adding
384	384	Chapter 21A to read as follows:
385	385	CHAPTER 21A. ACQUISITION BY EMINENT DOMAIN OF CERTAIN
386	386	FOREIGN-OWNED REAL PROPERTY
387	387	Sec. 21A.001. DEFINITIONS. In this chapter:
388	388	(1) "Committee" means the homeland security review
389	389	committee established by Section 5.252.
390	390	(2) "Critical infrastructure" and "foreign adversary"
391	391	have the meanings assigned to those terms by Section 5.251.
392	392	Sec. 21A.002. APPLICABILITY. This chapter applies only to
393	393	real property in this state:
394	394	(1) that is owned by a foreign adversary; or
395	395	(2) that is:
396	396	(A) described by Section 5.255, 5.256, or 5.257;
397	397	and
398	398	(B) held by a person described by Section
399	399	5.253(c).
400	400	Sec. 21A.003. EMINENT DOMAIN; COURT PROCEEDING. (a) The
401	401	attorney general shall bring an action to obtain a court order under
402	402	Subsection (c) authorizing the attorney general to initiate an
403	403	eminent domain proceeding to acquire real property owned by a
404	404	foreign adversary or person as described by Section 21A.002 if:
405	405	(1) the attorney general has reason to believe and
406	406	shows the real property is held in violation of Subchapter H,
407	407	Chapter 5; and
408	408	(2) the committee directs the attorney general to
409	409	bring the action.
410	410	(b) An action under this section may be brought in a
411	411	district court in the county where all or part of the real property
412	412	that is the subject of the action is located.
413	413	(c) If the district court finds the attorney general has
414	414	made the showing required by Subsection (a), the court shall enter
415	415	an order stating that finding.
416	416	(d) On entry of the district court's order under Subsection
417	417	(c), the attorney general may initiate eminent domain proceedings
418	418	to acquire the real property.
419	419	(e) Chapter 21 governs the procedure for an eminent domain
420	420	proceeding initiated in accordance with this chapter. Chapter 2206,
421	421	Government Code, and Subchapter E, Chapter 21, of this code do not
422	422	apply to an eminent domain proceeding initiated in accordance with
423	423	this chapter.
424	424	Sec. 21A.004. STATE MANAGEMENT OF ACQUIRED REAL PROPERTY.
425	425	Real property acquired by eminent domain under Section 21A.003
426	426	shall be owned by this state and managed by the General Land Office.
427	427	SECTION 5. As soon as practicable after the effective date
428	428	of this Act:
429	429	(1) the governor shall adopt rules for the
430	430	implementation of Subchapter H, Chapter 5, Property Code, as added
431	431	by this Act; and
432	432	(2) the attorney general shall adopt rules for the
433	433	implementation of Chapter 21A, Property Code, as added by this Act.
434	434	SECTION 6. This Act takes effect September 1, 2025.