By: Spiller H.B. No. 4006
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the purchase of or acquisition of title to real property
  by certain foreign entities.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  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 2.  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 ENTITIES
         Sec. 5.251.  PROHIBITION ON PURCHASE OF OR ACQUISITION OF
  TITLE TO REAL PROPERTY.  Notwithstanding any other law, the
  following may not purchase or otherwise acquire title to real
  property in this state:
               (1)  a governmental entity of China, Iran, North Korea,
  or Russia;
               (2)  a company or other entity that is:
                     (A)  headquartered in China, Iran, North Korea, or
  Russia;
                     (B)  directly or indirectly held or controlled by
  the government of China, Iran, North Korea, or Russia; or
                     (C)  owned by or the majority of stock or other
  ownership interest of which is held or controlled by entities who
  are citizens of China, Iran, North Korea, or Russia;
               (3)  a company or other entity that is owned by or the
  majority of stock or other ownership interest of which is held or
  controlled by a company or entity described by Subdivision (2).
         Sec. 5.252.  ATTORNEY GENERAL ENFORCEMENT.  (a)  If the
  attorney general has reason to believe that an entity has purchased
  or otherwise acquired title to real property in violation of
  Section 5.251, 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.
         (b)  The attorney general shall record notice of an action
  brought under Subsection (a) in the real property records of each
  county where any part of the real property subject to the action is
  located.
         (c)  If the district court finds that the real property
  subject to an action brought under Subsection (a) was purchased or
  otherwise acquired by an entity in violation of Section 5.251, the
  court shall enter an order stating that finding and ordering the
  entity to divest all interest in the property.  The attorney general
  shall record a copy of the order in the real property records of
  each county where any part of the real property subject to the order
  is located.
         Sec. 5.253.  DIVESTMENT; FORCED SALE.  (a)  Not later than
  the first anniversary of the date the district court enters an order
  under Section 5.252(c), an entity found by the district court to
  have purchased or acquired title to real property in violation of
  this subchapter shall divest all interest in the real property.
         (b)  If an entity fails to divest an interest in real
  property as required by an order issued under Subsection (a), the
  district court shall enter an order that divests the entity's
  interest in the real property and directs the sheriff or constable
  for each county where any part of the real property is located to
  seize and conduct a public sale of the property in the manner that
  similar property is sold under execution.
         Sec. 5.254.  DISTRIBUTION OF SALE PROCEEDS. (a)  An officer
  conducting a public sale under Section 5.253(b) is entitled to
  retain from the proceeds of the sale an amount equal to the
  reasonable expenses incurred by the officer.
         (b)  The remaining proceeds of a sale conducted under Section
  5.253(b) shall be remitted to the comptroller for deposit in the
  general revenue fund.
         SECTION 3.  As soon as practicable after the effective date
  of this Act, the attorney general shall adopt rules for the
  implementation of Subchapter H, Chapter 5, Property Code, as added
  by this Act.
         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 September 1, 2023.