Texas 2025 - 89th Regular

Texas Senate Bill SB17 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		By: Kolkhorst, et al. S.B. No. 17
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3		-
	2	+	(In the Senate - Filed February 20, 2025; February 20, 2025,
	3	+	read first time and referred to Committee on State Affairs;
	4	+	March 17, 2025, reported adversely, with favorable Committee
	5	+	Substitute by the following vote: Yeas 10, Nays 1; March 17, 2025,
	6	+	sent to printer.)
	7	+	Click here to see the committee vote
	8	+	COMMITTEE SUBSTITUTE FOR S.B. No. 17 By: Hall
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5	10
6	11		A BILL TO BE ENTITLED
7	12		AN ACT
8	13		relating to the purchase or acquisition of real property by certain
9	14		aliens or foreign entities.
10	15		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	16		SECTION 1. Section 64.001(a), Civil Practice and Remedies
12	17		Code, is amended to read as follows:
13	18		(a) A court of competent jurisdiction may appoint a
14	19		receiver:
15	20		(1) in an action by a vendor to vacate a fraudulent
16	21		purchase of property;
17	22		(2) in an action by a creditor to subject any property
18	23		or fund to the creditor's [his] claim;
19	24		(3) in an action between partners or others jointly
20	25		owning or interested in any property or fund;
21	26		(4) in an action by a mortgagee for the foreclosure of
22	27		the mortgage and sale of the mortgaged property;
23	28		(5) for a corporation that is insolvent, is in
24	29		imminent danger of insolvency, has been dissolved, or has forfeited
25	30		its corporate rights; [or]
26	31		(6) in an action by the attorney general under
27	32		Subchapter H, Chapter 5, Property Code; or
28	33		(7) in any other case in which a receiver may be
29	34		appointed under the rules of equity.
30	35		SECTION 2. Section 5.005, Property Code, is amended to read
31	36		as follows:
32	37		Sec. 5.005. ALIENS. Except as provided by Subchapter H, an
33	38		[An] alien has the same real and personal property rights as a
34	39		United States citizen.
35	40		SECTION 3. Chapter 5, Property Code, is amended by adding
36	41		Subchapter H to read as follows:
37	42		SUBCHAPTER H. PURCHASE OR ACQUISITION OF REAL PROPERTY BY CERTAIN
38	43		FOREIGN INDIVIDUALS OR ENTITIES
39	44		Sec. 5.251. DEFINITIONS. In this subchapter:
40	45		(1) "Agricultural land" means land that is located in
41	46		this state and that is suitable for:
42	47		(A) use in production of plants and fruits grown
43	48		for human or animal consumption, or plants grown for the production
44	49		of fibers, floriculture, silviculture, viticulture, horticulture,
45	50		or planting seed; or
46	51		(B) domestic or native farm or ranch animals kept
47	52		for use or profit.
48	53		(2) "Designated country" means a country identified by
49	54		the United States Director of National Intelligence as a country
50	55		that poses a risk to the national security of the United States in
51	56		each of the three most recent Annual Threat Assessments of the U.S.
52	57		Intelligence Community issued pursuant to Section 108B, National
53	58		Security Act of 1947 (50 U.S.C. Section 3043b).
54	59		(3) "Governing authority," "governing person," and
55	60		"organization" have the meanings assigned by Section 1.002,
56	61		Business Organizations Code.
57	62		(4) "Real property" includes:
58	63		(A) agricultural land;
59	64		(B) an improvement located on agricultural land;
60	65		(C) commercial property;
61	66		(D) industrial property;
62	67		(E) groundwater;
63	68		(F) residential property;
64	69		(G) a mine or quarry;
65	70		(H) a mineral in place;
66	71		(I) standing timber; or
67	72		(J) water rights.
68	73		Sec. 5.252. ORGANIZATION UNDER CONTROL OF INDIVIDUAL OR
69	74		ANOTHER ORGANIZATION. (a) For purposes of this subchapter, an
70	75		organization is under the control of an individual or another
71	76		organization if the controlling individual or organization is
72	77		authorized to:
73	78		(1) direct the activities of the controlled
74	79		organization;
75	80		(2) make or direct others to make legal commitments on
76	81		behalf of the controlled organization; or
77	82		(3) hire and fire a principal decision maker of the
78	83		controlled organization.
79	84		(b) The authority of the controlling individual or
80	85		organization under Subsection (a) may derive from:
81	86		(1) exercise of a voting ownership interest of the
82	87		controlled organization sufficient to elect a governing person or
83	88		governing authority of the controlled organization to exercise on
84	89		the controlling individual's or organization's behalf the authority
85	90		described by Subsection (a); or
86	91		(2) a financial, legal, practical, contractual, or
87	92		other arrangement that functionally enables the controlling
88	93		individual or organization to exercise the authority described by
89	94		Subsection (a).
90	95		Sec. 5.253. EXCEPTIONS: UNITED STATES CITIZENS AND LAWFUL
91	96		PERMANENT RESIDENTS; RESIDENCE HOMESTEAD PROPERTY; LEASEHOLD.
92	97		This subchapter does not apply to:
93	98		(1) an individual who is a citizen or lawful permanent
94	99		resident of the United States, including an individual who is a
95	100		citizen of a foreign country;
96	101		(2) an organization that is owned by or under the
97	102		control of one or more individuals described by Subdivision (1);
98	103		(3) real property that is intended for use as an
99	104		individual's residence homestead, as defined by Section 11.13(j),
100	105		Tax Code; or
101	106		(4) a leasehold interest in land or improvements
102	107		constructed on a leasehold if the duration of the interest is less
103	108		than 100 years.
104	109		Sec. 5.254. PROHIBITION ON PURCHASE OR ACQUISITION OF REAL
105	110		PROPERTY. Except as provided by Section 5.253 and notwithstanding
106	111		any other law, the following may not purchase or otherwise acquire
107	112		real property in this state:
108	113		(1) a governmental entity of a designated country;
109	114		(2) an organization that is:
110	115		(A) headquartered in a designated country;
111	116		(B) directly or indirectly under the control of
112	117		the government of a designated country; or
113	118		(C) owned by or under the control of one or more
114	119		individuals who are domiciled in a designated country;
115	120		(3) an organization that is owned by or under the
116	121		control of an organization described by Subdivision (2);
117	122		(4) an individual who is domiciled in a designated
118	123		country; or
119	124		(5) an individual who is a member of, associated with,
120	125		or acting on behalf of the government of a designated country.
121	126		Sec. 5.255. ATTORNEY GENERAL ENFORCEMENT. (a) If the
122	127		attorney general has a reasonable suspicion that an individual,
123	128		organization, or governmental entity has purchased or otherwise
124	129		acquired real property in this state in violation of this
125	130		subchapter, the attorney general may bring an in rem action against
126	131		real property to enforce this subchapter in a district court in the
127	132		county where all or part of the real property that is the subject of
128	133		the violation is located.
129	134		(b) The attorney general shall record notice of an action
130	135		brought under Subsection (a) in the real property records of each
131	136		county where any part of the real property subject to the action is
132	137		located.
133	138		(c) Except for an acquisition of a leasehold interest not
134	139		exempt from this subchapter under Section 5.253(4), a purchase or
135	140		acquisition of real property in violation of Section 5.254 is not
136	141		void because of the violation, and the validity or enforceability
137	142		by any person of a purchase contract for or the conveyance of the
138	143		real property is not otherwise affected by the violation.
139	144		Sec. 5.256. ATTORNEY GENERAL INVESTIGATION AND DISCOVERY;
140	145		SECRETARY OF STATE INTERROGATORIES AND RECORDS. (a) The attorney
141	146		general may conduct discovery to investigate a potential action
142	147		under Section 5.255 or in an action brought under Section 5.255,
143	148		including by:
144	149		(1) petitioning for an order authorizing the taking of
145	150		a deposition under Rule 202, Texas Rules of Civil Procedure; or
146	151		(2) if the attorney general has reason to believe that
147	152		a person may be in possession, custody, or control of any
148	153		documentary material or other evidence or may have any information
149	154		relevant to an investigation of a suspected violation of Section
150	155		5.254, issuing in writing and serving on the person a civil
151	156		investigative demand requiring the person to:
152	157		(A) produce any of the documentary material for
153	158		inspection and copying;
154	159		(B) answer in writing any written
155	160		interrogatories;
156	161		(C) give oral testimony; or
157	162		(D) provide any combination of civil
158	163		investigative demands under Paragraph (A), (B), or (C).
159	164		(b) The secretary of state shall on request by the attorney
160	165		general:
161	166		(1) serve interrogatories on an individual or entity
162	167		as necessary to determine the ownership or control of an
163	168		organization that is the subject of an action by the attorney
164	169		general under Section 5.255; and
165	170		(2) provide to the attorney general all records held
166	171		by the secretary relating to the ownership or control of an
167	172		organization that is the subject of an action by the attorney
168	173		general under Section 5.255.
169	174		Sec. 5.257. APPOINTMENT OF RECEIVER. (a) If the district
170	175		court finds that the real property subject to an action brought
171	176		under Section 5.255 was purchased or otherwise acquired by an
172	177		individual, organization, or governmental entity in violation of
173	178		Section 5.254, the court shall enter an order that:
174	179		(1) states the court's finding; and
175	180		(2) appoints a receiver to:
176	181		(A) manage and control the real property pending
177	182		the sale or other disposition of the real property; and
178	183		(B) return to the individual, organization, or
179	184		governmental entity that purchased or otherwise acquired the
180	185		property in violation of this subchapter any proceeds of the sale or
181	186		other disposition of the real property after satisfying any
182	187		existing liens on the property and recovery of any reasonable costs
183	188		incurred by the state in enforcing this subchapter.
184	189		(b) On appointment and qualification, a receiver appointed
185	190		under this section has the powers and duties of a receiver under
186	191		Chapter 64, Civil Practice and Remedies Code.
187	192		SECTION 4. The changes in law made by this Act apply only to
188	193		the purchase or other acquisition of real property on or after the
189	194		effective date of this Act. The purchase or other acquisition of
190	195		real property before the effective date of this Act is governed by
191	196		the law in effect immediately before the effective date of this Act,
192	197		and that law is continued in effect for that purpose.
193	198		SECTION 5. This Act takes effect September 1, 2025.
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