| 1 | 1 | | 89R2478 DRS-D |
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| 2 | 2 | | By: Hall S.B. No. 103 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | |
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| 6 | 6 | | |
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| 7 | 7 | | A BILL TO BE ENTITLED |
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| 8 | 8 | | AN ACT |
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| 9 | 9 | | relating to prohibiting the purchase of or acquisition of title to |
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| 10 | 10 | | real property by and contracts or other agreements with certain |
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| 11 | 11 | | aliens or foreign entities. |
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| 12 | 12 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 13 | 13 | | SECTION 1. Section 5.005, Property Code, is amended to read |
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| 14 | 14 | | as follows: |
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| 15 | 15 | | Sec. 5.005. ALIENS. Except as provided by Subchapter H, an |
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| 16 | 16 | | [An] alien has the same real and personal property rights as a |
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| 17 | 17 | | United States citizen. |
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| 18 | 18 | | SECTION 2. Chapter 5, Property Code, is amended by adding |
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| 19 | 19 | | Subchapter H to read as follows: |
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| 20 | 20 | | SUBCHAPTER H. PURCHASE OF OR ACQUISITION OF TITLE TO REAL PROPERTY |
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| 21 | 21 | | BY CERTAIN FOREIGN INDIVIDUALS OR ENTITIES |
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| 22 | 22 | | Sec. 5.251. DEFINITION. In this subchapter, "control" |
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| 23 | 23 | | means ownership of, or the power to directly or indirectly vote, 50 |
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| 24 | 24 | | percent or more of the outstanding voting interests of a company or |
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| 25 | 25 | | other entity, and includes ownership by an individual through one |
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| 26 | 26 | | or more legal entities. |
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| 27 | 27 | | Sec. 5.252. EXCEPTION: UNITED STATES CITIZENS AND LAWFUL |
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| 28 | 28 | | PERMANENT RESIDENTS. This subchapter does not apply to an |
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| 29 | 29 | | individual who is a citizen or lawful permanent resident of the |
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| 30 | 30 | | United States, including an individual who is a citizen of a foreign |
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| 31 | 31 | | country. |
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| 32 | 32 | | Sec. 5.253. PROHIBITION ON PURCHASE OF OR ACQUISITION OF |
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| 33 | 33 | | TITLE TO REAL PROPERTY. Except as provided by Section 5.252 and |
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| 34 | 34 | | notwithstanding any other law, the following may not purchase or |
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| 35 | 35 | | otherwise acquire title to real property in this state: |
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| 36 | 36 | | (1) a governmental entity of China, Iran, North Korea, |
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| 37 | 37 | | or Russia; |
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| 38 | 38 | | (2) a company or other entity that is: |
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| 39 | 39 | | (A) headquartered in China, Iran, North Korea, or |
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| 40 | 40 | | Russia; |
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| 41 | 41 | | (B) directly or indirectly under the control of |
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| 42 | 42 | | the government of China, Iran, North Korea, or Russia; or |
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| 43 | 43 | | (C) owned by or under the control of one or more |
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| 44 | 44 | | individuals who are citizens of China, Iran, North Korea, or |
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| 45 | 45 | | Russia; |
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| 46 | 46 | | (3) a company or other entity that is owned by or under |
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| 47 | 47 | | the control of a company or entity described by Subdivision (2); or |
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| 48 | 48 | | (4) an individual who is a citizen of China, Iran, |
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| 49 | 49 | | North Korea, or Russia. |
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| 50 | 50 | | SECTION 3. Subtitle F, Title 10, Government Code, is |
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| 51 | 51 | | amended by adding Chapter 2278 to read as follows: |
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| 52 | 52 | | CHAPTER 2278. PROHIBITION ON CONTRACTS WITH CERTAIN FOREIGN |
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| 53 | 53 | | INDIVIDUALS OR ENTITIES |
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| 54 | 54 | | Sec. 2278.001. DEFINITIONS. In this chapter: |
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| 55 | 55 | | (1) "Adverse foreign entity" means a governmental |
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| 56 | 56 | | entity or a company or other entity described by Section 5.253, |
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| 57 | 57 | | Property Code. |
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| 58 | 58 | | (2) "Governmental entity" has the meaning assigned by |
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| 59 | 59 | | Section 2251.001. |
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| 60 | 60 | | Sec. 2278.002. PROHIBITED CONTRACTS. (a) This section |
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| 61 | 61 | | does not apply to an individual who is a citizen or lawful permanent |
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| 62 | 62 | | resident of the United States, including an individual who is a |
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| 63 | 63 | | citizen of a foreign country. |
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| 64 | 64 | | (b) In this section, "public money" means money of this |
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| 65 | 65 | | state, a state agency, or a political subdivision of this state or |
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| 66 | 66 | | money the state, state agency, or political subdivision controls or |
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| 67 | 67 | | directs. |
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| 68 | 68 | | (c) Except as provided by Subsection (a), a governmental |
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| 69 | 69 | | entity may not enter into a contract or other agreement payable with |
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| 70 | 70 | | public money with: |
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| 71 | 71 | | (1) an adverse foreign entity; or |
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| 72 | 72 | | (2) an individual who is a citizen of China, Iran, |
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| 73 | 73 | | North Korea, or Russia. |
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| 74 | 74 | | SECTION 4. (a) Subchapter H, Chapter 5, Property Code, as |
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| 75 | 75 | | added by this Act, applies only to the purchase of or other |
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| 76 | 76 | | acquisition of title to real property on or after the effective date |
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| 77 | 77 | | of this Act. The purchase of or other acquisition of title to real |
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| 78 | 78 | | property before the effective date of this Act is governed by the |
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| 79 | 79 | | law in effect immediately before the effective date of this Act, and |
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| 80 | 80 | | that law is continued in effect for that purpose. |
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| 81 | 81 | | (b) Chapter 2278, Government Code, as added by this Act, |
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| 82 | 82 | | applies only to a contract or other agreement entered into on or |
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| 83 | 83 | | after the effective date of this Act. |
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| 84 | 84 | | SECTION 5. This Act takes effect September 1, 2025. |
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