Texas 2025 - 89th Regular

Texas Senate Bill SB307 Compare Versions

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

Old	New	Differences
1	1	89R5273 DRS-F
2	2	By: Kolkhorst, et al. S.B. No. 307
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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) "Designated country" means a country identified by
50	50	the United States Director of National Intelligence as a country
51	51	that poses a risk to the national security of the United States in
52	52	each of the three most recent Annual Threat Assessments of the U.S.
53	53	Intelligence Community issued pursuant to Section 108B, National
54	54	Security Act of 1947 (50 U.S.C. Section 3043b).
55	55	(3) "Governing authority," "governing person," and
56	56	"organization" have the meanings assigned by Section 1.002,
57	57	Business Organizations Code.
58	58	(4) "Real property" means:
59	59	(A) agricultural land;
60	60	(B) an improvement located on agricultural land;
61	61	(C) a mine or quarry;
62	62	(D) a mineral in place; or
63	63	(E) standing timber.
64	64	Sec. 5.252. ORGANIZATION UNDER CONTROL OF INDIVIDUAL OR
65	65	ANOTHER ORGANIZATION. (a) For purposes of this subchapter, an
66	66	organization is under the control of an individual or another
67	67	organization if the controlling individual or organization is
68	68	authorized to:
69	69	(1) direct the activities of the controlled
70	70	organization;
71	71	(2) make or direct others to make legal commitments on
72	72	behalf of the controlled organization; or
73	73	(3) hire and fire a principal decision maker of the
74	74	controlled organization.
75	75	(b) The authority of the controlling individual or
76	76	organization under Subsection (a) may derive from:
77	77	(1) exercise of a voting ownership interest of the
78	78	controlled organization sufficient to elect a governing person or
79	79	governing authority of the controlled organization to exercise on
80	80	the controlling individual's or organization's behalf the authority
81	81	described by Subsection (a); or
82	82	(2) a financial, legal, practical, contractual, or
83	83	other arrangement that functionally enables the controlling
84	84	individual or organization to exercise the authority described by
85	85	Subsection (a).
86	86	Sec. 5.253. EXCEPTIONS: UNITED STATES CITIZENS AND LAWFUL
87	87	PERMANENT RESIDENTS; RESIDENCE HOMESTEAD PROPERTY; LEASEHOLD.
88	88	This subchapter does not apply to:
89	89	(1) an individual who is a citizen or lawful permanent
90	90	resident of the United States, including an individual who is a
91	91	citizen of a foreign country;
92	92	(2) an organization that is owned by or under the
93	93	control of one or more individuals described by Subdivision (1);
94	94	(3) real property that is intended for use as an
95	95	individual's residence homestead, as defined by Section 11.13(j),
96	96	Tax Code; or
97	97	(4) a leasehold interest in land or improvements
98	98	constructed on a leasehold if the duration of the interest is less
99	99	than 100 years.
100	100	Sec. 5.254. PROHIBITION ON PURCHASE OF OR ACQUISITION OF
101	101	TITLE TO REAL PROPERTY. (a) In this section, "risk to the health,
102	102	safety, and welfare of the public" includes a likelihood that an
103	103	individual, organization, or governmental entity will engage in an
104	104	act that:
105	105	(1) constitutes:
106	106	(A) a violation of state or federal criminal law;
107	107	(B) corporate espionage; or
108	108	(C) a public nuisance; or
109	109	(2) causes or threatens to cause bodily injury to a
110	110	person, including the introduction of a dangerous disease or
111	111	dangerous substance into an area.
112	112	(b) Except as provided by Section 5.253 and notwithstanding
113	113	any other law, the following may not purchase or otherwise acquire
114	114	title to real property in this state if the purchase of or
115	115	acquisition of title to the property by the individual,
116	116	organization, or governmental entity would create a risk to the
117	117	health, safety, and welfare of the public:
118	118	(1) a governmental entity of a designated country;
119	119	(2) an organization that is:
120	120	(A) headquartered in a designated country;
121	121	(B) directly or indirectly under the control of
122	122	the government of a designated country; or
123	123	(C) owned by or under the control of one or more
124	124	individuals who are domiciled in a designated country;
125	125	(3) an organization that is owned by or under the
126	126	control of an organization described by Subdivision (2); or
127	127	(4) an individual who is domiciled in a designated
128	128	country.
129	129	Sec. 5.255. ATTORNEY GENERAL ENFORCEMENT. If the attorney
130	130	general has a reasonable suspicion that the purchase of or
131	131	acquisition of title to real property in this state by an
132	132	individual, organization, or governmental entity in violation of
133	133	this subchapter creates a risk to the health, safety, and welfare of
134	134	the public, as defined by Section 5.254, the attorney general may
135	135	bring an action to enforce this subchapter in a district court in
136	136	the county where all or part of the real property that is the
137	137	subject of the violation is located.
138	138	Sec. 5.256. ATTORNEY GENERAL INVESTIGATION AND DISCOVERY;
139	139	SECRETARY OF STATE INTERROGATORIES AND RECORDS. (a) The attorney
140	140	general may conduct discovery to investigate a potential action
141	141	under Section 5.255 or in an action brought under Section 5.255,
142	142	including by:
143	143	(1) petitioning for an order authorizing the taking of
144	144	a deposition under Rule 202, Texas Rules of Civil Procedure; or
145	145	(2) if the attorney general has reason to believe that
146	146	a person may be in possession, custody, or control of any
147	147	documentary material or other evidence or may have any information
148	148	relevant to an investigation of a suspected violation of Section
149	149	5.254, issuing in writing and serving on the person a civil
150	150	investigative demand requiring the person to:
151	151	(A) produce any of the documentary material for
152	152	inspection and copying;
153	153	(B) answer in writing any written
154	154	interrogatories;
155	155	(C) give oral testimony; or
156	156	(D) provide any combination of civil
157	157	investigative demands under Paragraph (A), (B), or (C).
158	158	(b) The secretary of state shall on request by the attorney
159	159	general:
160	160	(1) serve interrogatories on an individual or entity
161	161	as necessary to determine the ownership or control of an
162	162	organization that is the subject of an action by the attorney
163	163	general under Section 5.255; and
164	164	(2) provide to the attorney general all records held
165	165	by the secretary relating to the ownership or control of an
166	166	organization that is the subject of an action by the attorney
167	167	general under Section 5.255.
168	168	Sec. 5.257. APPOINTMENT OF RECEIVER. (a) If the district
169	169	court finds that the real property subject to an action brought
170	170	under Section 5.255 was purchased or otherwise acquired by an
171	171	individual, organization, or governmental entity in violation of
172	172	Section 5.254, the court shall enter an order that:
173	173	(1) states the court's finding; and
174	174	(2) appoints a receiver to:
175	175	(A) manage and control the real property pending
176	176	the sale or other disposition of the real property; and
177	177	(B) return to the individual, organization, or
178	178	governmental entity any proceeds of the sale or other disposition
179	179	of the real property.
180	180	(b) On appointment and qualification, a receiver appointed
181	181	under this section has the powers and duties of a receiver under
182	182	Chapter 64, Civil Practice and Remedies Code.
183	183	SECTION 4. The changes in law made by this Act apply only to
184	184	the purchase of or other acquisition of title to real property on or
185	185	after the effective date of this Act. The purchase of or other
186	186	acquisition of title to real property before the effective date of
187	187	this Act is governed by the law in effect immediately before the
188	188	effective date of this Act, and that law is continued in effect for
189	189	that purpose.
190	190	SECTION 5. This Act takes effect September 1, 2025.