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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 foreign entities. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. 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 2. 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 |
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PROPERTY BY CERTAIN FOREIGN ENTITIES |
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Sec. 5.251. DEFINITIONS. In this subchapter: |
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(1) "Control" means the right to exercise more than 50 |
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percent of an organization's voting interests to elect the |
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governing authority or governing person of the organization. |
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(2) "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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(3) "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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(4) "Real property" means: |
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(A) land; |
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(B) an improvement; |
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(C) a mine or quarry; |
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(D) a mineral in place; |
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(E) standing timber; or |
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(F) an estate or interest, other than: |
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(i) a mortgage or deed of trust creating a |
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lien on or an interest securing payment or performance of an |
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obligation in property described by Paragraphs (A) through (E); or |
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(ii) a leasehold estate in land or an |
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improvement for a term of five or fewer years. |
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Sec. 5.252. PROHIBITION ON PURCHASE OF OR ACQUISITION OF |
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TITLE TO REAL PROPERTY. Notwithstanding any other law, the |
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following may not purchase or otherwise acquire title to real |
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property in this state: |
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(1) a governmental entity of a designated country; |
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(2) an organization that is: |
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(A) headquartered in a designated country; or |
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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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(3) an organization that is under the control of an |
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organization described by Subdivision (2). |
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Sec. 5.253. ATTORNEY GENERAL ENFORCEMENT. (a) If the |
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attorney general has reason to believe that an entity has purchased |
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or otherwise acquired title to real property in violation of |
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Section 5.252, the attorney general may bring an action to enforce |
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this subchapter in a district court in the county where all or part |
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of the real property subject to the violation is located. |
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(b) The attorney general shall record notice of an action |
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brought under Subsection (a) in the real property records of each |
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county where any part of the real property subject to the action is |
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located. |
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(c) If the district court finds that the real property |
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subject to an action brought under Subsection (a) was purchased or |
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otherwise acquired by an entity in violation of Section 5.252, the |
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court shall enter an order stating that finding and appoint a |
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receiver to manage, control, and sell the real property. |
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(d) 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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(e) A purchase of or acquisition of title to real property |
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in violation of Section 5.252 is not void because of the violation, |
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and the validity or enforceability by any person of a purchase |
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contract for or the conveyance of the real property is not otherwise |
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affected by the violation. |
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SECTION 3. As soon as practicable after the effective date |
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of this Act, the attorney general shall adopt rules for the |
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implementation of Subchapter H, Chapter 5, Property Code, as added |
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by this Act. |
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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 September 1, 2025. |