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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. 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 China, Iran, North Korea, |
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or Russia; |
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(2) a company or other entity that is: |
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(A) headquartered in China, Iran, North Korea, or |
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Russia; |
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(B) directly or indirectly held or controlled by |
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the government of China, Iran, North Korea, or Russia; or |
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(C) owned by or the majority of stock or other |
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ownership interest of which is held or controlled by entities who |
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are citizens of China, Iran, North Korea, or Russia; |
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(3) a company or other entity that is owned by or the |
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majority of stock or other ownership interest of which is held or |
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controlled by a company or entity described by Subdivision (2). |
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Sec. 5.252. 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 5.251, 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 that is the subject of the violation is |
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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 5.251, the |
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court shall enter an order stating that finding and ordering the |
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entity to divest all interest in the property. The attorney general |
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shall record a copy of the order in the real property records of |
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each county where any part of the real property subject to the order |
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is located. |
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Sec. 5.253. DIVESTMENT; FORCED SALE. (a) Not later than |
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the first anniversary of the date the district court enters an order |
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under Section 5.252(c), an entity found by the district court to |
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have purchased or acquired title to real property in violation of |
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this subchapter shall divest all interest in the real property. |
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(b) If an entity fails to divest an interest in real |
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property as required by an order issued under Subsection (a), the |
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district court shall enter an order that divests the entity's |
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interest in the real property and directs the sheriff or constable |
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for each county where any part of the real property is located to |
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seize and conduct a public sale of the property in the manner that |
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similar property is sold under execution. |
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Sec. 5.254. DISTRIBUTION OF SALE PROCEEDS. (a) An officer |
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conducting a public sale under Section 5.253(b) is entitled to |
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retain from the proceeds of the sale an amount equal to the |
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reasonable expenses incurred by the officer. |
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(b) The remaining proceeds of a sale conducted under Section |
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5.253(b) shall be remitted to the comptroller for deposit in the |
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general revenue fund. |
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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, 2023. |