88S40148 DRS-F
 
  By: Kolkhorst S.B. No. 38
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the purchase of or acquisition of title to real property
  by certain aliens or foreign entities.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 64.001(a), Civil Practice and Remedies
  Code, is amended to read as follows:
         (a)  A court of competent jurisdiction may appoint a
  receiver:
               (1)  in an action by a vendor to vacate a fraudulent
  purchase of property;
               (2)  in an action by a creditor to subject any property
  or fund to the creditor's [his] claim;
               (3)  in an action between partners or others jointly
  owning or interested in any property or fund;
               (4)  in an action by a mortgagee for the foreclosure of
  the mortgage and sale of the mortgaged property;
               (5)  for a corporation that is insolvent, is in
  imminent danger of insolvency, has been dissolved, or has forfeited
  its corporate rights; [or]
               (6)  in an action by the attorney general under
  Subchapter H, Chapter 5, Property Code; or  
               (7)  in any other case in which a receiver may be
  appointed under the rules of equity.
         SECTION 2.  Section 5.005, Property Code, is amended to read
  as follows:
         Sec. 5.005.  ALIENS.  Except as provided by Subchapter H, an
  [An] alien has the same real and personal property rights as a
  United States citizen.
         SECTION 3.  Chapter 5, Property Code, is amended by adding
  Subchapter H to read as follows:
  SUBCHAPTER H. PURCHASE OF OR ACQUISITION OF TITLE TO REAL PROPERTY
  BY CERTAIN FOREIGN INDIVIDUALS OR ENTITIES
         Sec. 5.251.  DEFINITIONS. In this subchapter:
               (1)  "Agricultural land" means land that is located in
  this state and that is suitable for:
                     (A)  use in production of plants and fruits grown
  for human or animal consumption, or plants grown for the production
  of fibers, floriculture, viticulture, horticulture, or planting
  seed; or
                     (B)  domestic or native farm or ranch animals kept
  for use or profit.
               (2)  "Control" means ownership of at least 50 percent
  of the voting ownership interest of an organization necessary to
  elect a governing person or governing authority of an organization.
               (3)  "Designated country" means a country identified by
  the United States Director of National Intelligence as a country
  that poses a risk to the national security of the United States in
  each of the three most recent Annual Threat Assessments of the U.S.
  Intelligence Community issued pursuant to Section 108B, National
  Security Act of 1947 (50 U.S.C. Section 3043b).
               (4)  "Governing authority," "governing person," and
  "organization" have the meanings assigned by Section 1.002,
  Business Organizations Code.
               (5)  "Real property" means:
                     (A)  agricultural land;
                     (B)  an improvement located on agricultural land;
                     (C)  a mine or quarry;
                     (D)  a mineral in place; or
                     (E)  standing timber.
         Sec. 5.252.  EXCEPTIONS: UNITED STATES CITIZENS AND LAWFUL
  PERMANENT RESIDENTS; RESIDENCE HOMESTEAD PROPERTY; LEASEHOLD. (a)
  This subchapter does not apply to:
               (1)  an individual who is a citizen or lawful permanent
  resident of the United States, including an individual who is a
  citizen of a foreign country; or
               (2)  a company or other entity that is owned by or under
  the control of one or more individuals described by Subdivision
  (1).
         (b)  This subchapter does not apply to real property that is
  an individual's residence homestead, as defined by Section
  11.13(j), Tax Code.
         (c)  This subchapter does not apply to a leasehold interest
  in land or improvements constructed upon a leasehold.
         Sec. 5.253.  PROHIBITION ON PURCHASE OF OR ACQUISITION OF
  TITLE TO REAL PROPERTY.  (a) In this section, "risk to the health,
  safety, and welfare of the public" includes a likelihood that an
  individual or entity will engage in an act that:
               (1)  constitutes:
                     (A)  a violation of state or federal criminal law;
                     (B)  corporate espionage; or
                     (C)  a public nuisance; or 
               (2)  causes or threatens to cause bodily injury to a
  person, including the introduction of a dangerous disease or
  dangerous substance into an area.
         (b)  Except as provided by Section 5.252 and notwithstanding
  any other law, the following may not purchase or otherwise acquire
  title to real property in this state if the purchase of or
  acquisition of title to the property by the individual or entity
  would create a risk to the health, safety, and welfare of the
  public:
               (1)  a governmental entity of a designated country; 
               (2)  a company or other entity that is: 
                     (A)  headquartered in a designated country;
                     (B)  directly or indirectly under the control of
  the government of a designated country; or
                     (C)  owned by or under the control of one or more
  individuals who are citizens of a designated country;
               (3)  a company or other entity that is owned by or under
  the control of a company or entity described by Subdivision (2); or
               (4)  an individual who is a citizen of a designated
  country.
         Sec. 5.254.  ATTORNEY GENERAL ENFORCEMENT. If the attorney
  general has a reasonable suspicion that the purchase of or
  acquisition of title to real property in this state by an individual
  or entity in violation of this subchapter creates a risk to the
  health, safety, and welfare of the public, as defined by Section
  5.253, the attorney general may bring an action to enforce this
  subchapter in a district court in the county where all or part of
  the real property that is the subject of the violation is located.
         Sec. 5.255.  DISCOVERY; SECRETARY OF STATE INTERROGATORIES
  AND RECORDS. (a) The attorney general may conduct discovery in an
  action brought under Section 5.254.
         (b)  The secretary of state shall on request by the attorney
  general:
               (1)  serve interrogatories on an individual or entity
  as necessary to determine the ownership or control of a company or
  other entity that is the subject of an action by the attorney
  general under Section 5.254; and
               (2)  provide to the attorney general all records held
  by the secretary relating to the ownership or control of a company
  or other entity that is the subject of an action by the attorney
  general under Section 5.254.
         Sec. 5.256.  APPOINTMENT OF RECEIVER. (a) If the district
  court finds that the real property subject to an action brought
  under Section 5.254 was purchased or otherwise acquired by an
  individual or entity in violation of Section 5.253, the court shall
  enter an order that:
               (1)  states the court's finding; and
               (2)  appoints a receiver to:
                     (A)  manage and control the real property pending
  the sale or other disposition of the real property; and
                     (B)  return to the individual or entity any
  proceeds of the sale or other disposition of the real property.
         (b)  On appointment and qualification, a receiver appointed
  under this section has the powers and duties of a receiver under
  Chapter 64, Civil Practice and Remedies Code.
         SECTION 4.  The changes in law made by this Act apply only to
  the purchase of or other acquisition of title to real property on or
  after the effective date of this Act. The purchase of or other
  acquisition of title to real property before the effective date of
  this Act is governed by the law in effect immediately before the
  effective date of this Act, and that law is continued in effect for
  that purpose.
         SECTION 5.  This Act takes effect on the 91st day after the
  last day of the legislative session.