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A BILL TO BE ENTITLED
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AN ACT
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relating to the purchase of or acquisition of title to real property |
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by certain aliens or foreign entities. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 64.001(a), Civil Practice and Remedies |
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Code, is amended to read as follows: |
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(a) A court of competent jurisdiction may appoint a |
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receiver: |
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(1) in an action by a vendor to vacate a fraudulent |
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purchase of property; |
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(2) in an action by a creditor to subject any property |
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or fund to the creditor's [his] claim; |
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(3) in an action between partners or others jointly |
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owning or interested in any property or fund; |
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(4) in an action by a mortgagee for the foreclosure of |
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the mortgage and sale of the mortgaged property; |
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(5) for a corporation that is insolvent, is in |
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imminent danger of insolvency, has been dissolved, or has forfeited |
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its corporate rights; [or] |
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(6) in an action by the attorney general under |
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Subchapter H, Chapter 5, Property Code; or |
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(7) in any other case in which a receiver may be |
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appointed under the rules of equity. |
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SECTION 2. Section 5.005, Property Code, is amended to read |
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as follows: |
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Sec. 5.005. ALIENS. Except as provided by Subchapter H, an |
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[An] alien has the same real and personal property rights as a |
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United States citizen. |
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SECTION 3. Chapter 5, Property Code, is amended by adding |
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Subchapter H to read as follows: |
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SUBCHAPTER H. PURCHASE OF OR ACQUISITION OF TITLE TO REAL PROPERTY |
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BY CERTAIN FOREIGN INDIVIDUALS OR ENTITIES |
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Sec. 5.251. DEFINITIONS. In this subchapter: |
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(1) "Agricultural land" means land that is located in |
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this state and that is suitable for: |
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(A) use in production of plants and fruits grown |
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for human or animal consumption, or plants grown for the production |
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of fibers, floriculture, viticulture, horticulture, or planting |
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seed; or |
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(B) domestic or native farm or ranch animals kept |
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for use or profit. |
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(2) "Control" means ownership of at least 50 percent |
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of the voting ownership interest of an organization necessary to |
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elect a governing person or governing authority of an organization. |
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(3) "Designated country" means a country identified by |
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the United States Director of National Intelligence as a country |
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that poses a risk to the national security of the United States in |
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each of the three most recent Annual Threat Assessments of the U.S. |
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Intelligence Community issued pursuant to Section 108B, National |
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Security Act of 1947 (50 U.S.C. Section 3043b). |
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(4) "Governing authority," "governing person," and |
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"organization" have the meanings assigned by Section 1.002, |
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Business Organizations Code. |
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(5) "Real property" means: |
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(A) agricultural land; |
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(B) an improvement located on agricultural land; |
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(C) a mine or quarry; |
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(D) a mineral in place; or |
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(E) standing timber. |
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Sec. 5.252. EXCEPTIONS: UNITED STATES CITIZENS AND LAWFUL |
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PERMANENT RESIDENTS; RESIDENCE HOMESTEAD PROPERTY; LEASEHOLD. (a) |
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This subchapter does not apply to: |
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(1) an individual who is a citizen or lawful permanent |
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resident of the United States, including an individual who is a |
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citizen of a foreign country; or |
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(2) a company or other entity that is owned by or under |
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the control of one or more individuals described by Subdivision |
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(1). |
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(b) This subchapter does not apply to real property that is |
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an individual's residence homestead, as defined by Section |
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11.13(j), Tax Code. |
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(c) This subchapter does not apply to a leasehold interest |
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in land or improvements constructed upon a leasehold. |
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Sec. 5.253. PROHIBITION ON PURCHASE OF OR ACQUISITION OF |
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TITLE TO REAL PROPERTY. (a) In this section, "risk to the health, |
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safety, and welfare of the public" includes a likelihood that an |
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individual or entity will engage in an act that: |
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(1) constitutes: |
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(A) a violation of state or federal criminal law; |
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(B) corporate espionage; or |
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(C) a public nuisance; or |
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(2) causes or threatens to cause bodily injury to a |
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person, including the introduction of a dangerous disease or |
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dangerous substance into an area. |
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(b) Except as provided by Section 5.252 and notwithstanding |
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any other law, the following may not purchase or otherwise acquire |
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title to real property in this state if the purchase of or |
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acquisition of title to the property by the individual or entity |
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would create a risk to the health, safety, and welfare of the |
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public: |
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(1) a governmental entity of a designated country; |
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(2) a company or other entity that is: |
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(A) headquartered in a designated country; |
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(B) directly or indirectly under the control of |
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the government of a designated country; or |
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(C) owned by or under the control of one or more |
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individuals who are citizens of a designated country; |
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(3) a company or other entity that is owned by or under |
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the control of a company or entity described by Subdivision (2); or |
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(4) an individual who is a citizen of a designated |
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country. |
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Sec. 5.254. ATTORNEY GENERAL ENFORCEMENT. If the attorney |
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general has a reasonable suspicion that the purchase of or |
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acquisition of title to real property in this state by an individual |
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or entity in violation of this subchapter creates a risk to the |
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health, safety, and welfare of the public, as defined by Section |
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5.253, the attorney general may bring an action to enforce this |
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subchapter in a district court in the county where all or part of |
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the real property that is the subject of the violation is located. |
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Sec. 5.255. DISCOVERY; SECRETARY OF STATE INTERROGATORIES |
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AND RECORDS. (a) The attorney general may conduct discovery in an |
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action brought under Section 5.254. |
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(b) The secretary of state shall on request by the attorney |
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general: |
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(1) serve interrogatories on an individual or entity |
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as necessary to determine the ownership or control of a company or |
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other entity that is the subject of an action by the attorney |
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general under Section 5.254; and |
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(2) provide to the attorney general all records held |
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by the secretary relating to the ownership or control of a company |
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or other entity that is the subject of an action by the attorney |
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general under Section 5.254. |
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Sec. 5.256. APPOINTMENT OF RECEIVER. (a) If the district |
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court finds that the real property subject to an action brought |
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under Section 5.254 was purchased or otherwise acquired by an |
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individual or entity in violation of Section 5.253, the court shall |
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enter an order that: |
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(1) states the court's finding; and |
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(2) appoints a receiver to: |
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(A) manage and control the real property pending |
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the sale or other disposition of the real property; and |
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(B) return to the individual or entity any |
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proceeds of the sale or other disposition of the real property. |
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(b) On appointment and qualification, a receiver appointed |
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under this section has the powers and duties of a receiver under |
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Chapter 64, Civil Practice and Remedies Code. |
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SECTION 4. The changes in law made by this Act apply only to |
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the purchase of or other acquisition of title to real property on or |
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after the effective date of this Act. The purchase of or other |
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acquisition of title to real property before the effective date of |
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this Act is governed by the law in effect immediately before the |
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effective date of this Act, and that law is continued in effect for |
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that purpose. |
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SECTION 5. This Act takes effect on the 91st day after the |
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last day of the legislative session. |