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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 foreign organizations. |
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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 PROPERTY |
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BY FOREIGN ORGANIZATIONS |
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Sec. 5.251. DEFINITIONS. In this subchapter, "governing |
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authority," "governing person," and "organization" have the |
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meanings assigned by Section 1.002, Business Organizations Code. |
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Sec. 5.252. ORGANIZATION UNDER CONTROL OF INDIVIDUAL OR |
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ANOTHER ORGANIZATION. (a) For purposes of this subchapter, an |
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organization is under the control of an individual or another |
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organization if the controlling individual or organization is |
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authorized to: |
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(1) direct the activities of the controlled |
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organization; |
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(2) make or direct others to make legal commitments on |
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behalf of the controlled organization; or |
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(3) hire and fire a principal decision maker of the |
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controlled organization. |
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(b) The authority of the controlling individual or |
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organization under Subsection (a) may derive from: |
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(1) exercise of a voting ownership interest of the |
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controlled organization sufficient to elect a governing person or |
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governing authority of the controlled organization to exercise on |
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the controlling individual's or organization's behalf the authority |
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described by Subsection (a); or |
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(2) a financial, legal, practical, contractual, or |
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other arrangement that functionally enables the controlling |
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individual or organization to exercise the authority described by |
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Subsection (a). |
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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) an organization that: |
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(A) is organized under the laws of a foreign |
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government; or |
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(B) has its principal place of business outside |
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of the United States; or |
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(2) an organization that is owned by or under the |
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control of: |
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(A) an organization described by Subdivision |
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(1); |
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(B) an individual who is not a citizen or lawful |
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permanent resident of the United States; or |
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(C) a foreign government. |
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Sec. 5.2531. INTEREST ACQUIRED BEFORE SEPTEMBER 1, 2025. |
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Notwithstanding Section 5.253, a person described by that section |
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may continue to hold an interest in real property acquired before |
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September 1, 2025, until March 1, 2026, but must divest the person's |
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interest in the real property before that date. This section |
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expires January 1, 2027. |
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SECTION 3. This Act takes effect September 1, 2025. |