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A BILL TO BE ENTITLED
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AN ACT
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relating to interests in real property held or acquired by or on |
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behalf of certain foreign individuals or entities and the authority |
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of the attorney general to acquire the property by eminent domain; |
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establishing the homeland security review committee; creating a |
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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. HOLDING OR ACQUISITION OF REAL PROPERTY INTEREST BY |
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FOREIGN INDIVIDUAL OR ENTITY |
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Sec. 5.251. DEFINITIONS. In this subchapter: |
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(1) "Agricultural land" means land located in this |
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state that is suitable for: |
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(A) use in production of plants and fruits grown |
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for human or animal consumption, or plants grown for the production |
|
|
of fibers, floriculture, viticulture, horticulture, or planting |
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seed; or |
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(B) domestic or native farm or ranch animals kept |
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for use or profit. |
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(2) "Committee" means the homeland security review |
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committee established under Section 5.252. |
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(3) "Control" means the direct or indirect power to |
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determine, direct, dictate, or decide important matters affecting |
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an organization, including through: |
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(A) the ownership of at least 20 percent of the |
|
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total outstanding voting interest in an organization; |
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(B) board representation; |
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(C) the ability to appoint or discharge a board |
|
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member, officer, director, employee, or contractor; |
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(D) proxy voting, a special share, a contractual |
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arrangement, a legal obligation, or a formal or informal |
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arrangement to act in concert; or |
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(E) another means of exercising power. |
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(4) "Critical infrastructure" means a facility or site |
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in this state for which the committee determines that possession of |
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the facility or site or of real property located near the facility |
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or site could pose a risk to the security, economy, or public health |
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of this state. |
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(5) "Foreign adversary" means: |
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(A) the People's Republic of China; |
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(B) the Russian Federation; |
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(C) the Islamic Republic of Iran; |
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(D) the Democratic People's Republic of Korea; |
|
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(E) an agency or entity under the control of the |
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government of a country described by Paragraphs (A) through (D); or |
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(F) an organization wholly or partly owned by or |
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under the control of an agency or entity described by Paragraph (E). |
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(6) "Organization" has the meaning assigned by Section |
|
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1.002, Business Organizations Code. |
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(7) "Real property" means: |
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(A) land, including agricultural land; |
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(B) an improvement; |
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(C) a mine or quarry; |
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(D) a mineral in place; or |
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(E) standing timber. |
|
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(8) "Wholly or partly owned by or under the control of" |
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means: |
|
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(A) for a person that is a publicly traded |
|
|
company, that a person has: |
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(i) the ability to exercise control over |
|
|
the company; |
|
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(ii) access to any material, nonpublic, and |
|
|
technical information in the company's possession; or |
|
|
(iii) other rights or involvement in |
|
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controlling or participating in the decision-making of the company |
|
|
beyond rights or involvement available to a retail investor holding |
|
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an equivalent share of ownership; and |
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(B) for a person that is a privately held |
|
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company, that a person has any share of ownership of the company. |
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Sec. 5.252. HOMELAND SECURITY REVIEW COMMITTEE. (a) The |
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homeland security review committee is established and is composed |
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of the following members: |
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(1) the governor or the governor's designee; |
|
|
(2) the speaker of the house of representatives or the |
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|
speaker's designee; |
|
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(3) the lieutenant governor or the lieutenant |
|
|
governor's designee; |
|
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(4) the attorney general or the attorney general's |
|
|
designee; |
|
|
(5) the adjutant general or the adjutant general's |
|
|
designee; |
|
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(6) the commissioner of agriculture or the |
|
|
commissioner's designee; and |
|
|
(7) any other members that the governor may appoint. |
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|
(b) The committee shall: |
|
|
(1) identify the locations of critical infrastructure |
|
|
in this state; |
|
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(2) determine the following: |
|
|
(A) the distance in miles from the location of |
|
|
critical infrastructure within which real property must be located |
|
|
to make a transaction involving the property or acquisition of the |
|
|
property subject to: |
|
|
(i) reporting under Section 5.253(d)(1)(A) |
|
|
and prior approval under Section 5.256; or |
|
|
(ii) reporting under Section |
|
|
5.253(d)(1)(B) and disapproval under Section 5.257; |
|
|
(B) the amount of acreage of a parcel of real |
|
|
property that makes a transaction or acquisition subject to the |
|
|
reporting under Section 5.253(d)(2)(A) and prior approval under |
|
|
Section 5.256; and |
|
|
(C) the number of parcels of real property that |
|
|
makes a transaction or acquisition subject to reporting under |
|
|
Section 5.253(d)(2)(B) and prior approval under Section 5.256; and |
|
|
(3) by majority vote approve or disapprove a real |
|
|
property transaction or acquisition for which the committee's |
|
|
determination is required by Section 5.256 or 5.257. |
|
|
(c) For purposes of a majority vote of the committee under |
|
|
Subsection (b)(3), the governor or the governor's designee is |
|
|
entitled to four votes and each other member of the committee is |
|
|
entitled to one vote. |
|
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(d) The governor in consultation with the committee shall |
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|
adopt rules to administer this subchapter. |
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Sec. 5.253. REPORT OF REAL PROPERTY TRANSACTION OR |
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ACQUISITION REQUIRED. (a) For purposes of this subchapter, a |
|
|
transaction to acquire an interest in real property includes the |
|
|
execution of a lease agreement under which a person required to |
|
|
report to the committee under this section takes possession of the |
|
|
property. |
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|
(b) A person described by Subsection (c) shall report to the |
|
|
committee: |
|
|
(1) a transaction to acquire an interest in real |
|
|
property described by Subsection (d), not later than the 30th day |
|
|
before the proposed closing date of the transaction; or |
|
|
(2) acquisition of an interest in real property |
|
|
described by Subsection (d) by any means, not later than the 30th |
|
|
day after the date of the acquisition. |
|
|
(c) The following persons shall submit a report to the |
|
|
committee as required by Subsection (b): |
|
|
(1) an individual who is: |
|
|
(A) domiciled in a country that is a foreign |
|
|
adversary; and |
|
|
(B) not a citizen or lawful permanent resident of |
|
|
the United States; or |
|
|
(2) an organization that: |
|
|
(A) is organized under the laws of a country that |
|
|
is a foreign adversary; |
|
|
(B) has its principal place of business in a |
|
|
country that is a foreign adversary; or |
|
|
(C) is wholly or partly owned by or under the |
|
|
control of: |
|
|
(i) an organization described by Section |
|
|
5.251(5)(F); or |
|
|
(ii) an organization wholly or partly owned |
|
|
by or under the control of an individual or organization described |
|
|
by this subsection. |
|
|
(d) A person required by Subsection (b) to submit a report |
|
|
under this section shall report a transaction or acquisition |
|
|
involving real property that: |
|
|
(1) is located: |
|
|
(A) more than 25 miles from critical |
|
|
infrastructure but within the distance determined by the committee |
|
|
under Section 5.252(b)(2)(A)(i); or |
|
|
(B) outside the distance determined by the |
|
|
committee under Section 5.252(b)(2)(A)(i) but within the distance |
|
|
determined by the committee under Section 5.252(b)(2)(A)(ii); |
|
|
(2) consists of: |
|
|
(A) an amount of acreage that is equal to or more |
|
|
than the amount determined by the committee under Section |
|
|
5.252(b)(2)(B); or |
|
|
(B) a number of parcels that is equal to or more |
|
|
than the number determined by the committee under Section |
|
|
5.252(b)(2)(C); |
|
|
(3) is zoned for commercial use; or |
|
|
(4) consists of multifamily housing with three or more |
|
|
residential units. |
|
|
(e) A report under this section must: |
|
|
(1) identify: |
|
|
(A) the person holding or acquiring the interest |
|
|
in real property that is the subject of the report; |
|
|
(B) the countries of citizenship and domicile of |
|
|
the person described by Paragraph (A); and |
|
|
(C) if the person is an organization, each person |
|
|
with an ownership interest in the organization; and |
|
|
(2) include: |
|
|
(A) a description of the real property; |
|
|
(B) the location of the real property; |
|
|
(C) the interest held or to be acquired; and |
|
|
(D) any other relevant information required by |
|
|
the committee. |
|
|
Sec. 5.2531. TEMPORARY PROVISION: REPORT OF REAL PROPERTY |
|
|
HELD ON SEPTEMBER 1, 2025, REQUIRED. (a) Not later than January 1, |
|
|
2026, a foreign adversary shall report to the committee any |
|
|
interest in real property held by the foreign adversary on |
|
|
September 1, 2025. |
|
|
(b) Not later than January 1, 2026, a person described by |
|
|
Section 5.253(c) shall report to the committee any interest held by |
|
|
the person on September 1, 2025, in real property described by: |
|
|
(1) Section 5.253(d); or |
|
|
(2) Section 5.255(a). |
|
|
(c) This section expires September 1, 2026. |
|
|
Sec. 5.254. PROHIBITION ON HOLDING OR ACQUIRING INTEREST IN |
|
|
REAL PROPERTY BY FOREIGN ADVERSARY. (a) Except as provided by |
|
|
Subsection (d) and notwithstanding any other law, a foreign |
|
|
adversary may not hold or acquire an interest in real property in |
|
|
this state. |
|
|
(b) A foreign adversary that acquires an interest in real |
|
|
property by any means shall: |
|
|
(1) not later than the 30th day after the date of the |
|
|
acquisition, report the acquisition to the committee; and |
|
|
(2) not later than the 180th day after the date of the |
|
|
acquisition, divest the foreign adversary's interest in the real |
|
|
property. |
|
|
(c) A report required by Subsection (b) must include the |
|
|
information described by Section 5.253(e). |
|
|
(d) Notwithstanding Subsection (a), a foreign adversary may |
|
|
continue to hold an interest in real property acquired before |
|
|
September 1, 2025. |
|
|
Sec. 5.255. PROHIBITION ON HOLDING OR ACQUIRING INTEREST IN |
|
|
CERTAIN REAL PROPERTY BY CERTAIN PERSONS. (a) Except as provided |
|
|
by Subsection (d) and notwithstanding any other law, a person |
|
|
described by Section 5.253(c) may not hold or acquire an interest |
|
|
in: |
|
|
(1) agricultural land; or |
|
|
(2) real property that: |
|
|
(A) contains critical infrastructure; or |
|
|
(B) is located within 25 miles of critical |
|
|
infrastructure. |
|
|
(b) A person described by Section 5.253(c) that acquires an |
|
|
interest in agricultural land or real property described by |
|
|
Subsection (a)(2) shall: |
|
|
(1) not later than the 30th day after the date of the |
|
|
acquisition, report the acquisition to the committee; and |
|
|
(2) not later than the 180th day after the date of the |
|
|
acquisition, divest the person's interest in the real property. |
|
|
(c) A report required by Subsection (b) must include the |
|
|
information described by Section 5.253(e). |
|
|
(d) Notwithstanding Subsection (a), a person described by |
|
|
Section 5.253(c) may continue to hold an interest in real property |
|
|
described by Subsection (b) that the person acquired before |
|
|
September 1, 2025. |
|
|
Sec. 5.256. ACQUISITION OF CERTAIN REAL PROPERTY BY CERTAIN |
|
|
PERSONS: COMMITTEE PRIOR APPROVAL REQUIRED. (a) Except as |
|
|
provided by Section 5.258, unless the person receives prior written |
|
|
approval from the committee, a person described by Section 5.253(c) |
|
|
may not hold or acquire an interest in real property that: |
|
|
(1) is located more than 25 miles from critical |
|
|
infrastructure but within the distance determined by the committee |
|
|
under Section 5.252(b)(2)(A)(i); or |
|
|
(2) consists of: |
|
|
(A) an amount of acreage that is equal to or more |
|
|
than the amount determined by the committee under Section |
|
|
5.252(b)(2)(B); or |
|
|
(B) a number of parcels that is equal to or more |
|
|
than the number determined by the committee under Section |
|
|
5.252(b)(2)(C). |
|
|
(b) A person described by Section 5.253(c) that acquires an |
|
|
interest in real property described by Subsection (a) shall: |
|
|
(1) not later than the 30th day after the date of the |
|
|
acquisition, report the acquisition to the committee; and |
|
|
(2) not later than the 180th day after the date of the |
|
|
acquisition, divest the person's interest in the real property. |
|
|
(c) A report required by Subsection (b) must include the |
|
|
information described by Section 5.253(e). |
|
|
Sec. 5.257. ACQUISITION OF CERTAIN REAL PROPERTY BY CERTAIN |
|
|
PERSONS: EFFECT OF COMMITTEE PRIOR DISAPPROVAL. (a) Except as |
|
|
provided by Section 5.258, if before the closing date of a |
|
|
transaction to acquire an interest in real property a person |
|
|
described by Section 5.253(c) receives from the committee notice |
|
|
that the committee has disapproved the acquisition, a person |
|
|
described by Section 5.253(c) may not acquire an interest in real |
|
|
property that: |
|
|
(1) is located a distance from critical infrastructure |
|
|
that is outside the distance determined by the committee under |
|
|
Section 5.252(b)(2)(A)(i) but within the distance determined by the |
|
|
committee under Section 5.252(b)(2)(A)(ii); |
|
|
(2) is zoned for commercial use; or |
|
|
(3) consists of multifamily housing with three or more |
|
|
residential units. |
|
|
(b) A person described by Section 5.253(c) that acquires an |
|
|
interest in real property described by Subsection (a) shall: |
|
|
(1) not later than the 30th day after the date of the |
|
|
acquisition, report the acquisition to the committee; and |
|
|
(2) not later than the 180th day after the date of the |
|
|
acquisition, divest the person's interest in the real property. |
|
|
(c) A report required by Subsection (b) must include the |
|
|
information described by Section 5.253(e). |
|
|
Sec. 5.258. EXCEPTION: SINGLE-FAMILY HOME HELD OR ACQUIRED |
|
|
BY INDIVIDUAL. Sections 5.256, 5.257, and 5.261 do not apply to a |
|
|
single-family home held or acquired by an individual described by |
|
|
Section 5.253(c)(1). |
|
|
Sec. 5.259. INVESTIGATION AND ENFORCEMENT BY ATTORNEY |
|
|
GENERAL. (a) The attorney general shall investigate a report |
|
|
alleging a violation of this subchapter. |
|
|
(b) If the attorney general determines after an |
|
|
investigation that a violation of this subchapter has occurred, the |
|
|
attorney general shall: |
|
|
(1) bring an action under Section 5.260 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; and |
|
|
(2) file a lis pendens notice describing the property |
|
|
with the county clerk of each county in which the property is |
|
|
located. |
|
|
Sec. 5.260. DIVESTITURE; APPOINTMENT OF RECEIVER; |
|
|
DISTRIBUTION OF SALE PROCEEDS. (a) If the district court finds |
|
|
that the interest in real property subject to an action brought |
|
|
under Section 5.259 was acquired by a person in violation of this |
|
|
subchapter, the court shall enter an order that: |
|
|
(1) states the court's finding; |
|
|
(2) divests the person'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. |
|
|
(c) A lienholder is entitled to a credit bid at a sale of |
|
|
real property under this section. |
|
|
(d) Proceeds from the sale or other disposition of real |
|
|
property under an order described by Subsection (a) shall be |
|
|
applied first to satisfy any existing liens on the property. The |
|
|
remaining proceeds: |
|
|
(1) are forfeited to this state; and |
|
|
(2) shall be remitted to the comptroller for deposit |
|
|
in the general revenue fund. |
|
|
(e) The attorney general shall record a copy of an order of |
|
|
sale or other disposition of the real property in the real property |
|
|
records of each county in which any part of the real property |
|
|
subject to the order is located. |
|
|
Sec. 5.261. ATTORNEY GENERAL ACQUISITION OF CERTAIN REAL |
|
|
PROPERTY BY EMINENT DOMAIN. The committee by majority vote may |
|
|
direct the attorney general to initiate an eminent domain |
|
|
proceeding under Chapter 21A to acquire real property that is: |
|
|
(1) held by a foreign adversary; or |
|
|
(2) except as provided by Section 5.258: |
|
|
(A) described by Section 5.255, 5.256, or 5.257; |
|
|
and |
|
|
(B) held by a person described by Section |
|
|
5.253(c). |
|
|
Sec. 5.262. EVASIVE TRANSACTIONS PROHIBITED. A person may |
|
|
not start or complete a transaction for the acquisition of an |
|
|
interest in real property in a manner designed for the purpose of |
|
|
evading this subchapter. |
|
|
Sec. 5.263. OFFENSE. (a) A person commits an offense if |
|
|
the person intentionally or knowingly makes a report under this |
|
|
subchapter that conceals or falsely represents the identity of a |
|
|
person holding or acquiring an interest in real property for the |
|
|
purpose of evading this subchapter. |
|
|
(b) An offense under this section is a felony of the second |
|
|
degree. |
|
|
Sec. 5.264. VALIDITY OF TITLE NOT AFFECTED. The validity |
|
|
of title to real property in this state held by a person who is not |
|
|
prohibited by this subchapter from acquiring or holding an interest |
|
|
in the property is not affected by this subchapter because of a |
|
|
violation of this subchapter by a former owner or holder of an |
|
|
interest in the property. |
|
|
Sec. 5.265. NO DUTY TO INQUIRE. This subchapter does not |
|
|
require a person to determine or inquire into whether another |
|
|
person is or may be subject to this subchapter. |
|
|
SECTION 4. Title 4, Property Code, is amended by adding |
|
|
Chapter 21A to read as follows: |
|
|
CHAPTER 21A. ACQUISITION BY EMINENT DOMAIN OF CERTAIN |
|
|
FOREIGN-OWNED REAL PROPERTY |
|
|
Sec. 21A.001. DEFINITIONS. In this chapter: |
|
|
(1) "Committee" means the homeland security review |
|
|
committee established by Section 5.252. |
|
|
(2) "Critical infrastructure" and "foreign adversary" |
|
|
have the meanings assigned to those terms by Section 5.251. |
|
|
Sec. 21A.002. APPLICABILITY. This chapter applies only to |
|
|
real property in this state: |
|
|
(1) that is owned by a foreign adversary; or |
|
|
(2) that is: |
|
|
(A) described by Section 5.255, 5.256, or 5.257; |
|
|
and |
|
|
(B) held by a person described by Section |
|
|
5.253(c). |
|
|
Sec. 21A.003. EMINENT DOMAIN; COURT PROCEEDING. (a) The |
|
|
attorney general shall bring an action to obtain a court order under |
|
|
Subsection (c) authorizing the attorney general to initiate an |
|
|
eminent domain proceeding to acquire real property owned by a |
|
|
foreign adversary or person as described by Section 21A.002 if: |
|
|
(1) the attorney general has reason to believe and |
|
|
shows the real property is held in violation of Subchapter H, |
|
|
Chapter 5; and |
|
|
(2) the committee directs the attorney general to |
|
|
bring the action. |
|
|
(b) An action under this section may be brought in a |
|
|
district court in the county where all or part of the real property |
|
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that is the subject of the action is located. |
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(c) If the district court finds the attorney general has |
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made the showing required by Subsection (a), the court shall enter |
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an order stating that finding. |
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(d) On entry of the district court's order under Subsection |
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(c), the attorney general may initiate eminent domain proceedings |
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to acquire the real property. |
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(e) Chapter 21 governs the procedure for an eminent domain |
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proceeding initiated in accordance with this chapter. Chapter 2206, |
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Government Code, and Subchapter E, Chapter 21, of this code do not |
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apply to an eminent domain proceeding initiated in accordance with |
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this chapter. |
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Sec. 21A.004. STATE MANAGEMENT OF ACQUIRED REAL PROPERTY. |
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Real property acquired by eminent domain under Section 21A.003 |
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shall be owned by this state and managed by the General Land Office. |
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SECTION 5. As soon as practicable after the effective date |
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of this Act: |
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(1) the governor 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; and |
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(2) the attorney general shall adopt rules for the |
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implementation of Chapter 21A, Property Code, as added by this Act. |
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SECTION 6. This Act takes effect September 1, 2025. |