89R2308 DRS-F

By: Vasut H.B. No. 2752

A BILL TO BE ENTITLED

AN ACT

relating to the purchase of or acquisition of title to real property by certain aliens or foreign entities.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 64.001(a), Civil Practice and Remedies Code, is amended to read as follows:

(a) A court of competent jurisdiction may appoint a receiver:

(1) in an action by a vendor to vacate a fraudulent purchase of property;

(2) in an action by a creditor to subject any property or fund to the creditor's [his] claim;

(3) in an action between partners or others jointly owning or interested in any property or fund;

(4) in an action by a mortgagee for the foreclosure of the mortgage and sale of the mortgaged property;

(5) for a corporation that is insolvent, is in imminent danger of insolvency, has been dissolved, or has forfeited its corporate rights; [or]

(6) in an action by the attorney general under Subchapter H, Chapter 5, Property Code; or

(7) in any other case in which a receiver may be appointed under the rules of equity.

SECTION 2. 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 3. 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 INDIVIDUALS OR ENTITIES

Sec. 5.251. DEFINITIONS. In this subchapter:

(1) "Control" means ownership of at least 50 percent of the voting ownership interest of an organization necessary to elect a governing person or governing authority of an organization.

(2) "Designated country" means:

(A) a country identified by the United States Director of National Intelligence as a country that poses a risk to the national security of the United States in an Annual Threat Assessment of the U.S. Intelligence Community issued pursuant to Section 108B, National Security Act of 1947 (50 U.S.C. Section 3043b) during the three-year period preceding the date of a purchase or acquisition subject to this subchapter; or

(B) a country that at any time during the three-year period preceding the date of a purchase or acquisition subject to this subchapter has been:

(i) designated by the United States secretary of state as a state sponsor of terrorism; or

(ii) subject to sanctions by the United States Department of the Treasury Office of Foreign Assets Control relating to the sale or transfer of arms, munitions, or technology.

(3) "Governing authority," "governing person," and "organization" have the meanings assigned by Section 1.002, Business Organizations Code.

(4) "Governing political party" means a political organization any member of which occupies the highest executive office of a country.

(5) "Real property" means:

(A) land;

(B) an improvement;

(C) a mine or quarry;

(D) a mineral in place; or

(E) standing timber.

Sec. 5.252. EXCEPTIONS: UNITED STATES CITIZENS AND LAWFUL PERMANENT RESIDENTS; RESIDENCE HOMESTEAD PROPERTY. (a) This subchapter does not apply to:

(1) an individual who is a citizen or lawful permanent resident of the United States, including an individual who is a citizen of a foreign country; or

(2) an organization that is owned by or under the control of one or more individuals described by Subdivision (1).

(b) This subchapter does not apply to real property that is:

(1) intended for use as an individual's residence homestead, as defined by Section 11.13(j), Tax Code; or

(2) owned by a governmental entity as a foreign consulate or embassy of the entity as recognized by the United States Department of State.

(c) This subchapter does not apply to a leasehold interest in land or improvements constructed upon a leasehold.

Sec. 5.253. PROHIBITION ON PURCHASE OF OR ACQUISITION OF TITLE TO REAL PROPERTY. Except as provided by Section 5.252 and notwithstanding any other law, the following may not purchase or otherwise acquire title to real property in this state:

(1) a governmental entity of a designated country;

(2) the governing political party of a designated country;

(3) an organization that at any time during the three-year period preceding the purchase or acquisition has been designated as a foreign terrorist organization by the United States secretary of state under 8 U.S.C. Section 1189;

(4) an individual that at any time during the three-year period preceding the purchase or acquisition has been subject to sanctions by the United States Department of the Treasury Office of Foreign Assets Control as a specially designated national;

(5) an organization that is:

(A) under the control of the government or governing political party of a designated country; or

(B) owned by or under the control of:

(i) one or more individuals who are elected or appointed officials or employees of the government or members of the governing political party of a designated country; or

(ii) an individual or organization described by Subdivision (3) or (4);

(6) an organization that is owned by or under the control of an organization described by Subdivision (5); or

(7) an individual who:

(A) is or at any time during the 10-year period preceding the purchase or acquisition has been an elected or appointed official or employee of the government or member of the governing political party of a designated country;

(B) is related within the third degree by consanguinity or within the second degree by affinity, as determined under Chapter 573, Government Code, to an individual described by this section; or

(C) is a citizen of a designated country and is not lawfully present in the United States.

Sec. 5.254. ATTORNEY GENERAL ENFORCEMENT. If the attorney general has a reasonable suspicion that the purchase of or acquisition of title to real property in this state by an individual, organization, or entity in violation of this subchapter creates a risk to the health, safety, and welfare of the public, 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.

Sec. 5.255. DISCOVERY; SECRETARY OF STATE INTERROGATORIES AND RECORDS. (a) The attorney general may conduct discovery in an action brought under Section 5.254.

(b) The secretary of state shall on request by the attorney general:

(1) serve interrogatories on an individual, organization, or entity as necessary to determine the ownership or control of an organization or entity that is the subject of an action by the attorney general under Section 5.254; and

(2) provide to the attorney general all records held by the secretary relating to the ownership or control of an organization or entity that is the subject of an action by the attorney general under Section 5.254.

Sec. 5.256. DIVESTITURE; APPOINTMENT OF RECEIVER. (a) If the district court finds that the real property subject to an action brought under Section 5.254 was purchased or otherwise acquired by an individual, organization, or entity in violation of Section 5.253, the court shall enter an order that:

(1) states the court's finding;

(2) divests the individual's, organization's or entity's interest in the real property; and

(3) appoints a receiver to manage and control the real property pending the sale or other disposition of the real property.

(b) On appointment and qualification, a receiver appointed under this section has the powers and duties of a receiver under Chapter 64, Civil Practice and Remedies Code.

SECTION 4. 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 5. 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 6. This Act takes effect September 1, 2025.