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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 aliens or foreign entities; creating a criminal offense. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 64.001(a), Civil Practice and Remedies |
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Code, is amended to read as follows: |
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(a) A court of competent jurisdiction may appoint a |
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receiver: |
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(1) in an action by a vendor to vacate a fraudulent |
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purchase of property; |
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(2) in an action by a creditor to subject any property |
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or fund to the creditor's [his] claim; |
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(3) in an action between partners or others jointly |
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owning or interested in any property or fund; |
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(4) in an action by a mortgagee for the foreclosure of |
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the mortgage and sale of the mortgaged property; |
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(5) for a corporation that is insolvent, is in |
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imminent danger of insolvency, has been dissolved, or has forfeited |
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its corporate rights; [or] |
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(6) in an action by the attorney general under |
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Subchapter H, Chapter 5, Property Code; or |
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(7) in any other case in which a receiver may be |
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appointed under the rules of equity. |
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SECTION 2. 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 3. 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 PROPERTY |
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BY CERTAIN FOREIGN INDIVIDUALS OR ENTITIES |
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Sec. 5.251. DEFINITIONS. In this subchapter: |
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(1) "Company" means a sole proprietorship, |
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organization, association, corporation, partnership, joint |
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venture, limited partnership, limited liability partnership, or |
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limited liability company, including a wholly owned subsidiary, |
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majority-owned subsidiary, parent company, or affiliate of those |
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entities or business associations, that exists to make a profit. |
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(2) "Designated country" means: |
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(A) China, Iran, North Korea, or Russia; or |
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(B) a country designated by the governor under |
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Section 5.254. |
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Sec. 5.252. EXCEPTIONS: UNITED STATES CITIZENS AND CERTAIN |
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LAWFUL RESIDENTS; LEASEHOLD PROPERTY. This subchapter does not |
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apply to: |
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(1) an individual who is: |
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(A) a citizen or lawful permanent resident of the |
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United States; or |
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(B) a citizen of a foreign country who is not |
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domiciled in a designated country; |
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(2) a company or other entity that is owned by or under |
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the control of: |
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(A) one or more individuals described by |
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Subdivision (1); and |
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(B) no individual described by Section 5.253; or |
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(3) a leasehold interest in land or improvements |
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constructed upon a leasehold. |
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Sec. 5.253. 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) a company or other entity that is: |
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(A) headquartered in a designated country; |
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(B) directly or indirectly held or controlled by |
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the government of a designated country; 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 individuals |
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described by Subdivision (4); |
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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); or |
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(4) an individual who is domiciled in a designated |
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country. |
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Sec. 5.254. DESIGNATION OF COUNTRY AS SUBJECT TO |
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PROHIBITION ON PURCHASE OF OR ACQUISITION OF TITLE TO REAL |
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PROPERTY. (a) The governor, after consultation with the public |
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safety director of the Department of Public Safety, may designate a |
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country of which a governmental entity, company or other entity, or |
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citizen shall be subject to this subchapter. |
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(b) The governor shall consult the Homeland Security |
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Council established under Subchapter B, Chapter 421, Government |
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Code, for purposes of making a designation under this section. |
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Sec. 5.255. INVESTIGATION AND ENFORCEMENT BY ATTORNEY |
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GENERAL; LAW ENFORCEMENT REFERRAL. (a) The attorney general shall |
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establish procedures to examine a transfer of real property and |
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determine whether an investigation of a possible violation of this |
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subchapter is warranted. |
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(b) If the attorney general determines that an |
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investigation of a transfer of real property is warranted under |
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this section, the attorney general: |
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(1) shall investigate the transfer of real property |
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and determine whether a violation of this subchapter occurred; |
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(2) may bring an action to enforce this subchapter in a |
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district court in the county where all or part of the real property |
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that is the subject of the violation is located; and |
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(3) may refer the matter to the appropriate local, |
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state, or federal law enforcement agency. |
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Sec. 5.256. DIVESTITURE; APPOINTMENT OF RECEIVER; |
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DISTRIBUTION OF SALE PROCEEDS. (a) If the district court finds |
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that the real property subject to an action brought under Section |
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5.255 was purchased or otherwise acquired by an individual or |
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entity in violation of Section 5.253, the court shall enter an order |
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that: |
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(1) states the court's finding; |
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(2) divests the individual's or entity's interest in |
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the real property; and |
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(3) appoints a receiver to manage and control the real |
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property pending the sale or other disposition of the real |
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property. |
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(b) 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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(c) Proceeds from the sale or other disposition of real |
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property under an order described by Subsection (a) shall be |
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applied first to satisfy any existing liens on the property and then |
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to pay a fine assessed under Section 5.257(c). The remaining |
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proceeds shall be remitted to the comptroller for deposit in the |
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general revenue fund. |
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Sec. 5.257. OFFENSE; PENALTY. (a) A person commits an |
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offense if the person: |
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(1) is an individual domiciled in a designated |
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country; and |
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(2) intentionally or knowingly purchases or otherwise |
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acquires title to real property in this state. |
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(b) An offense under Subsection (a) is a state jail felony. |
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(c) A company or entity that the attorney general determines |
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under Section 5.255(b) to have violated this subchapter shall pay |
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to this state a fine equal to the greater of: |
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(1) $250,000; or |
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(2) 50 percent of the market value of the real property |
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that is the subject of the violation. |
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SECTION 4. 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 5. 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 6. This Act takes effect September 1, 2025. |