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A BILL TO BE ENTITLED
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AN ACT
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relating to creating the criminal offenses of real property theft |
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and real property fraud and establishing a statute of limitations |
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for those offenses; harmonizing other statute of limitations |
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provisions; increasing a criminal penalty. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Article 12.01, Code of Criminal Procedure, as |
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amended by H.B. 1778, S.B. 127, and S.B. 2798, Acts of the 89th |
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Legislature, Regular Session, 2025, and effective September 1, |
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2025, is reenacted and amended to read as follows: |
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Art. 12.01. FELONIES. Except as provided in Articles |
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12.015 and 12.03, felony indictments may be presented within these |
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limits, and not afterward: |
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(1) no limitation: |
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(A) murder and manslaughter; |
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(B) sexual assault under Section 22.011(a)(2), |
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Penal Code, or aggravated sexual assault under Section |
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22.021(a)(1)(B), Penal Code; |
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(C) sexual assault, if: |
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(i) during the investigation of the offense |
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biological matter is collected and the matter: |
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(a) has not yet been subjected to |
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forensic DNA testing; or |
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(b) has been subjected to forensic DNA |
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testing and the testing results show that the matter does not match |
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the victim or any other person whose identity is readily |
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ascertained; or |
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(ii) probable cause exists to believe that |
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the defendant has committed the same or a similar sex offense |
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against five or more victims; |
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(D) continuous sexual abuse of young child or |
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disabled individual under Section 21.02, Penal Code; |
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(E) indecency with a child under Section 21.11, |
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Penal Code; |
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(F) an offense involving leaving the scene of a |
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collision under Section 550.021, Transportation Code, if the |
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collision resulted in the death of a person; |
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(G) trafficking of persons under Section |
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20A.02(a)(7) or (8), Penal Code; |
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(H) continuous trafficking of persons under |
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Section 20A.03, Penal Code; |
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(I) compelling prostitution under Section |
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43.05(a)(2) or (3), Penal Code; |
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(J) tampering with physical evidence under |
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Section 37.09(a)(1) or (d)(1), Penal Code, if: |
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(i) the evidence tampered with is a human |
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corpse, as defined by that section; or |
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(ii) the investigation of the offense shows |
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that a reasonable person in the position of the defendant at the |
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time of the commission of the offense would have cause to believe |
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that the evidence tampered with is related to a criminal homicide |
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under Chapter 19, Penal Code; |
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(K) interference with child custody under |
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Section 25.03(a)(3), Penal Code; |
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(L) burglary under Section 30.02, Penal Code, if: |
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(i) the offense is punishable under |
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Subsection (d) of that section because the defendant entered a |
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habitation with the intent to commit an offense under Section |
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22.011 or 22.021, Penal Code; and |
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(ii) during the investigation of the |
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offense biological matter is collected and the matter: |
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(a) has not yet been subjected to |
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forensic DNA testing; or |
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(b) has been subjected to forensic DNA |
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testing and the testing results show that the matter does not match |
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the victim or any other person whose identity is readily |
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ascertained; |
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(M) failure to stop or report sexual or |
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assaultive offense against child under Section 38.17, Penal Code; |
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or |
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(N) continuous promotion of prostitution under |
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Section 43.032, Penal Code; |
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(2) ten years from the date of the commission of the |
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offense: |
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(A) theft of any estate, real, personal or mixed, |
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by an executor, administrator, guardian or trustee, with intent to |
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defraud any creditor, heir, legatee, ward, distributee, |
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beneficiary or settlor of a trust interested in such estate; |
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(B) theft by a public servant of government |
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property over which the public servant exercises control in the |
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public servant's official capacity; |
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(C) forgery or the uttering, using, or passing of |
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forged instruments; |
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(D) injury to an elderly or disabled individual |
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punishable as a felony of the first degree under Section 22.04, |
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Penal Code; |
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(E) sexual assault, except as provided by |
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Subdivision (1) or (10) [(9)]; |
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(F) arson; |
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(G) trafficking of persons under Section |
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20A.02(a)(1), (2), (3), or (4), Penal Code; [or] |
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(H) compelling prostitution under Section |
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43.05(a)(1), Penal Code; |
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(I) real estate theft under Section 31.23, Penal |
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Code; or |
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(J) real estate fraud under Section 32.60, Penal |
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Code; |
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(3) seven years from the date of the commission of the |
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offense: |
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(A) an offense under Chapter 32, Penal Code, |
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except as provided by Subdivision (2)(C) or (J); |
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(B) a felony violation under Chapter 162, Tax |
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Code; |
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(C) money laundering; |
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(D) health care fraud under Section 35A.02, Penal |
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Code; |
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(E) bigamy under Section 25.01, Penal Code, |
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except as provided by Subdivision (7); or |
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(F) possession or promotion of child pornography |
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under Section 43.26, Penal Code; |
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(4) five years from the date of the commission of the |
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offense: |
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(A) theft or robbery; |
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(B) except as provided by Subdivision (5), |
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kidnapping; |
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(C) except as provided by Subdivision (1) or (5), |
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burglary; |
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(D) injury to an elderly or disabled individual |
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that is not punishable as a felony of the first degree under Section |
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22.04, Penal Code; |
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(E) abandoning or endangering an elderly or |
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disabled individual; |
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(F) insurance fraud; |
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(G) assault under Section 22.01, Penal Code, if |
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the assault was committed against a person whose relationship to or |
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association with the defendant is described by Section 71.0021(b), |
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71.003, or 71.005, Family Code; |
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(H) continuous violence against the family under |
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Section 25.11, Penal Code; or |
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(I) aggravated assault under Section 22.02, |
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Penal Code; |
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(5) if the investigation of the offense shows that the |
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victim is younger than 17 years of age at the time the offense is |
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committed, 20 years from the 18th birthday of the victim of one of |
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the following offenses: |
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(A) kidnapping under Section 20.03, Penal Code, |
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or aggravated kidnapping under Section 20.04, Penal Code; or |
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(B) subject to Subdivision (1)(L), burglary |
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under Section 30.02, Penal Code, if the offense is punishable under |
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Subsection (d) of that section because the defendant entered a |
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habitation with the intent to commit an offense described by |
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Subdivision (1)(B) or (D) of this article or Paragraph (A) of this |
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subdivision; |
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(6) 20 years from the 18th birthday of the victim of |
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one of the following offenses: |
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(A) trafficking of a child under Section |
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20A.02(a)(5) or (6), Penal Code; or |
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(B) sexual performance by a child under Section |
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43.25, Penal Code; |
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(7) ten years from the 18th birthday of the victim of |
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the offense: |
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(A) injury to a child under Section 22.04, Penal |
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Code; |
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(B) bigamy under Section 25.01, Penal Code, if |
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the investigation of the offense shows that the person, other than |
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the legal spouse of the defendant, whom the defendant marries or |
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purports to marry or with whom the defendant lives under the |
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appearance of being married is younger than 18 years of age at the |
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time the offense is committed; or |
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(C) abandoning or endangering a child; |
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(8) ten years from the date the offense was |
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discovered: trafficking of a disabled individual under Section |
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20A.02(a)(5) or (6), Penal Code; |
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(9) four years from the date the offense was |
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discovered: failure to report child abuse or neglect if the offense |
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is punishable as a state jail felony under Section 261.109(c), |
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Family Code; |
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(10) two years from the date the offense was |
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discovered: sexual assault punishable as a state jail felony under |
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Section 22.011(f)(2), Penal Code; or |
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(11) three years from the date of the commission of the |
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offense: all other felonies. |
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SECTION 2. Title 1, Code of Criminal Procedure, is amended |
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by adding Chapter 5C to read as follows: |
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CHAPTER 5C. PROCEDURES FOR REAL PROPERTY THEFT AND FRAUD |
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Art. 5C.001. VERDICT; JUDGMENT. (a) If an offense under |
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Section 31.23 or Section 32.60, Penal Code, involves more than one |
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parcel of real property: |
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(1) for a case determined by a trial by jury: |
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(A) the verdict form shall clearly identify each |
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parcel of real property by street address or legal description of |
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the real property; |
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(B) the jury foreperson shall indicate whether |
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the jury unanimously finds that the parcel of real property is |
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included in the conduct constituting the offense; and |
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(C) the judgment must reflect the jury's verdict |
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for each parcel of real property that the jury unanimously finds to |
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be included in the conduct constituting the offense; |
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(2) for a case determined by a judge without a jury: |
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(A) the judge in rendering the verdict shall |
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state, for each parcel of real property, whether the judge finds the |
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property to be included in the conduct constituting the offense; |
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and |
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(B) the judgment must reflect the judge's finding |
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for each parcel of real property that the judge finds to be included |
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in the conduct constituting the offense; and |
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(3) for a case determined based on the defendant's |
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plea, if the indictment does not clearly identify each parcel of |
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real property alleged to be included in the conduct constituting |
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the offense, the prosecutor shall provide that information to the |
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court. The court shall include the information in the judgment. |
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(b) A judgment of conviction entered for an offense under |
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Section 31.23 or Section 32.60, Penal Code, must include: |
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(1) the street address or legal description of the |
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real property; and |
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(2) for each document that relates to the real |
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property that is the subject of the offense and that is recorded in |
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the real property records of the county, the identifying reference |
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number assigned to that document by the county clerk. |
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Art. 5C.002. JUDGMENT TO BE FILED WITH COUNTY CLERK. Not |
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later than the 10th day after the date the court enters a judgment |
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for an offense under Section 31.23 or Section 32.60, Penal Code, the |
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prosecutor or the court clerk, as determined by local court rule, |
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shall file with the county clerk: |
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(1) a certified copy of the judgment for recording in |
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the real property records of the county where the real property that |
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is the subject of the offense is located; |
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(2) a statement explaining the filing; and |
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(3) if the judgment does not comply with Article |
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5C.001(b), a certified copy of the indictment. |
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Art. 5C.003. EFFECT OF NONCOMPLIANCE ON JUDGMENT. A |
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judgment for an offense under Section 31.23 or Section 32.60, Penal |
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Code, is not invalid solely because the judgment fails to comply |
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with Article 5C.001(b) or 5C.002. |
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SECTION 3. Chapter 42, Code of Criminal Procedure, is |
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amended by adding Article 42.0376 to read as follows: |
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Art. 42.0376. RESTITUTION FOR REAL PROPERTY THEFT. (a) |
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Except as provided by Subsection (b) and subject to Subsection (c), |
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the court shall order a defendant convicted of or placed on deferred |
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adjudication community supervision for an offense under Section |
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31.23, Penal Code, to pay restitution, as applicable: |
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(1) for an offense under Section 31.23(b)(1), to the |
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owner of the real property or nonpossessory interest in real |
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property that is the subject of the offense in an amount equal to |
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the value of the real property or nonpossessory interest; |
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(2) for an offense under Section 31.23(b)(2), to the |
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owner of the benefit that is the subject of the offense in an amount |
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equal to the value of the benefit; |
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(3) to a title company or insurer that paid a claim |
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based on the conduct constituting the offense, in an amount equal to |
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the value of the payment made by the title company or insurer; or |
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(4) to the owner of the real property or nonpossessory |
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interest in real property or the owner of the benefit in an amount |
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equal to, as applicable: |
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(A) the value of losses incurred as the result of |
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the conduct constituting the offense, including loss of personal |
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property located on or in the real property that is the subject of |
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the offense; |
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(B) the cost of repairing damage caused by or |
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resulting from the conduct constituting the offense; or |
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(C) reasonable attorney's fees and court costs |
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related to an action brought to quiet title to or dispute the |
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conveyance or possession of the real property that is the subject of |
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the offense. |
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(b) The court may not order a defendant convicted of an |
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offense under Section 31.23(b)(1), Penal Code, to pay restitution |
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if, before judgment is entered in the case, the defendant: |
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(1) is listed in the county real property records as |
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the owner of the real property or nonpossessory interest in real |
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property that is the subject of the offense; |
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(2) executes a quitclaim deed or other instrument |
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conveying the title or interest to the owner of the property or |
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interest; |
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(3) files for recording in the county real property |
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records a copy of the quitclaim deed or other instrument; and |
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(4) files a certified copy of the recorded quitclaim |
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deed or other instrument with the court. |
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(c) The court shall reduce the amount of restitution that a |
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defendant is ordered to pay under this article by an amount equal to |
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the value of a payment made by a title company or insurer for a claim |
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based on the conduct constituting the offense to the person to whom |
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the court orders the defendant to pay restitution. |
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SECTION 4. Chapter 31, Penal Code, is amended by adding |
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Section 31.23 to read as follows: |
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Sec. 31.23. REAL PROPERTY THEFT. (a) In this section: |
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(1) "Nonpossessory interest" includes an interest |
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that may be conveyed by a quitclaim deed or conditional transfer. |
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(2) "Owner" includes an owner's estate and known |
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successors in interest if the owner is deceased. |
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(3) "Transfer" has the meaning assigned by Section |
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12.019, Property Code. |
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(b) A person commits an offense if the person: |
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(1) brings about or attempts to bring about a transfer |
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or purported transfer of real property or title to real property or |
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a nonpossessory interest in real property, to any transferee or |
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intended transferee: |
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(A) without the effective consent of the owner of |
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the real property or the nonpossessory interest in real property; |
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and |
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(B) with the intent to deprive the owner of the |
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real property or the nonpossessory interest in the real property; |
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or |
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(2) sells or otherwise transfers or encumbers, or |
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attempts to sell or otherwise transfer or encumber, real property |
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or title to real property or a nonpossessory interest in real |
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property to or with respect to a person in exchange for a benefit |
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from any person: |
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(A) without the effective consent of the owner of |
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the benefit; and |
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(B) with the intent to deprive the owner of the |
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benefit. |
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(c) Except as provided by Subsection (e), an offense under |
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Subsection (b)(1) is: |
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(1) a felony of the second degree if it is shown on the |
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trial of the offense that the market value of the real property is |
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less than $300,000; or |
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(2) a felony of the first degree if it is shown on the |
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trial of the offense that the market value of the real property is |
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$300,000 or more. |
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(d) Except as provided by Subsection (e), an offense under |
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Subsection (b)(2) is: |
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(1) a felony of the third degree if it is shown on the |
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trial of the offense that the value of the benefit received is less |
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than $30,000; |
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(2) a felony of the second degree if it is shown on the |
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trial of the offense that the value of the benefit received is |
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$30,000 or more but less than $150,000; or |
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(3) a felony of the first degree if it is shown on the |
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trial of the offense that the value of the benefit received is |
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$150,000 or more. |
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(e) An offense described for purposes of punishment by |
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Subsections (c) and (d) is increased to the next higher category of |
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offense if it is shown on the trial of the offense that at the time |
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of the offense: |
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(1) the owner of the real property or nonpossessory |
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interest in real property or the owner of the benefit was: |
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(A) a person 65 years of age or older; or |
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(B) a nonprofit organization; or |
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(2) the real property was subject to a property tax |
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exemption under Subchapter B, Chapter 11, Tax Code, as an |
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individual's residence homestead as defined by Section 11.13(j), |
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Tax Code. |
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(f) For purposes of Subsection (c), the market value of real |
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property is the market value of that property for the tax year in |
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which the offense was committed, as indicated on the appraisal roll |
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for the appraisal district in which the property is located. |
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(g) If conduct that constitutes an offense under this |
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section also constitutes an offense under another law, the actor |
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may be prosecuted under this section, the other law, or both. |
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SECTION 5. Subchapter D, Chapter 32, Penal Code, is amended |
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by adding Section 32.60 to read as follows: |
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Sec. 32.60. REAL PROPERTY FRAUD. (a) In this section: |
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(1) "Deception" has the meaning assigned by Section |
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31.01. |
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(2) "Document" and "effective consent" have the |
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meanings assigned by Section 32.46. |
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(b) A person commits an offense if the person: |
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(1) intentionally or knowingly makes a materially |
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false or misleading written statement to obtain real property; or |
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(2) with the intent to defraud or harm any person: |
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(A) causes another person, without that person's |
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effective consent, to sign or execute any document affecting real |
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property or any person's interest in real property; or |
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(B) causes a public servant, without the public |
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servant's effective consent, to file or record any purported |
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judgment or other document purporting to memorialize or evidence: |
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(i) title to real property or any person's |
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interest in real property; or |
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(ii) a lien or claim against real property |
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or against any person's interest in real property. |
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(c) Except as provided by Subsection (d), an offense under |
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this section is: |
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(1) a felony of the second degree if it is shown on the |
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trial of the offense that the market value of the real property or |
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the value of the interest in the real property is less than |
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$300,000; or |
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(2) a felony of the first degree if it is shown on the |
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trial of the offense that the market value of the real property or |
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the value of the interest in the real property is $300,000 or more. |
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(d) An offense described for purposes of punishment by |
|
Subsection (b) is increased to the next higher category of offense |
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if it is shown on the trial of the offense that at the time of the |
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offense: |
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(1) the owner of the real property was: |
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(A) a person 65 years of age or older; or |
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(B) a nonprofit organization; or |
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(2) the real property was subject to a property tax |
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exemption under Subchapter B, Chapter 11, Tax Code, as an |
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individual's residence homestead as defined by Section 11.13(j), |
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Tax Code. |
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(e) For purposes of Subsection (c), the market value of real |
|
property is the market value of that property for the tax year in |
|
which the offense was committed, as indicated on the appraisal roll |
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for the appraisal district in which the property is located. |
|
SECTION 6. Section 37.101(b), Penal Code, is amended to |
|
read as follows: |
|
(b) An offense under Subsection (a)(1) is a felony of the |
|
third degree, unless it is shown on the trial of the offense that |
|
the person had previously been convicted under this section on two |
|
or more occasions, in which event the offense is a felony of the |
|
second degree. An offense under Subsection (a)(2) or (a)(3) is a |
|
state jail felony [Class A misdemeanor], unless the person commits |
|
the offense with the intent to defraud or harm another, in which |
|
event the offense is a [state jail] felony of the third degree. |
|
SECTION 7. The changes in law made by this Act apply only to |
|
an offense committed on or after the effective date of this Act. An |
|
offense committed before the effective date of this Act is governed |
|
by the law in effect on the date the offense was committed, and the |
|
former law is continued in effect for that purpose. For purposes |
|
of this section, an offense was committed before the effective date |
|
of this Act if any element of the offense was committed before that |
|
date. |
|
SECTION 8. The changes in law made by this Act in amending |
|
Article 12.01, Code of Criminal Procedure, do not apply to an |
|
offense if the prosecution of that offense becomes barred by |
|
limitation before the effective date of this Act. The prosecution |
|
of that offense remains barred as if this Act had not taken effect. |
|
SECTION 9. This Act takes effect on the 91st day after the |
|
last day of the legislative session. |