LEGISLATIVE BUDGET BOARD
Austin, Texas
 
FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION
 
May 12, 2025

TO:
Honorable Dan Patrick, Lieutenant Governor, Senate
 
FROM:
Jerry McGinty, Director, Legislative Budget Board
 
IN RE:
SB17 by Kolkhorst (Relating to the purchase or acquisition of an interest in real property by certain aliens or foreign entities.), As Passed 2nd House

No significant fiscal implication to the State is anticipated.

The bill would prohibit certain governments, organizations, or individuals from designated foreign countries from acquiring real property in Texas. The Office of the Attorney General (OAG) would be authorized to investigate suspected violations and to bring an in rem action against real property for violations of the bill. The Secretary of State (SOS), on request from the OAG, would be required to serve interrogatories and provide all records related to the ownership or control of an organization subject to action by the OAG. The bill would allow the Governor to consult with the Department of Public Safety (DPS) to designate a country or entity as being subject to the prohibition on acquiring interest in real property.

The bill would establish a criminal offense for individuals and a civil penalty for companies or entities for violations of the provisions of the bill.  Any revenue impact would be dependent on the number of violations that would result in a civil penalty. Because of the unknown number of violations that may occur, the revenue impact of the bill cannot be determined.

The impact on state correctional populations and on the demand for state correctional resources cannot be determined due to a lack of data to estimate the prevalence of conduct outlined in the bill's provisions that would be subject to criminal penalties.

The OAG anticipates that any legal work resulting from the passage of this bill could be reasonably absorbed with current resources.

The SOS anticipates no significant fiscal impact to the agency.

The Office of Court Administration indicates that any additional casework related to the provisions of the bill would have no significant fiscal impact to the state court system.

Local Government Impact

No significant fiscal implication to units of local government is anticipated.


Source Agencies:
212 Office of Court Administration, Texas Judicial Council, 302 Office of the Attorney General, 304 Comptroller of Public Accounts, 307 Secretary of State, 405 Department of Public Safety
LBB Staff:
JMc, MGol, LCO, JKe, SD, WP, DA, JPa