HB 17

89R8449 DRS-D
		By: Hefner
  H.B. No. 17
  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; creating a criminal offense.
         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)  "Company" means a sole proprietorship,
  organization, association, corporation, partnership, joint
  venture, limited partnership, limited liability partnership, or
  limited liability company, including a wholly owned subsidiary,
  majority-owned subsidiary, parent company, or affiliate of those
  entities or business associations, that exists to make a profit.
               (2)  "Designated country" means:
                     (A)  China, Iran, North Korea, or Russia; or
                     (B)  a country designated by the governor under
  Section 5.254.
         Sec. 5.252.  EXCEPTIONS: UNITED STATES CITIZENS AND CERTAIN
  LAWFUL RESIDENTS; LEASEHOLD PROPERTY. This subchapter does not
  apply to:
               (1)  an individual who is:
                     (A)  a citizen or lawful permanent resident of the
  United States; or
                     (B)  a citizen of a foreign country who is not
  domiciled in a designated country; 
               (2)  a company or other entity that is owned by or under
  the control of:
                     (A)  one or more individuals described by
  Subdivision (1); and 
                     (B)  no individual described by Section 5.253; or
               (3)  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.  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)  a company or other entity that is:
                     (A)  headquartered in a designated country;
                     (B)  directly or indirectly held or controlled by
  the government of a designated country; or
                     (C)  owned by or the majority of stock or other
  ownership interest of which is held or controlled by individuals
  described by Subdivision (4);
               (3)  a company or other entity that is owned by or the
  majority of stock or other ownership interest of which is held or
  controlled by a company or entity described by Subdivision (2); or
               (4)  an individual who is domiciled in a designated
  country.
         Sec. 5.254.  DESIGNATION OF COUNTRY AS SUBJECT TO
  PROHIBITION ON PURCHASE OF OR ACQUISITION OF TITLE TO REAL
  PROPERTY.  (a)  The governor, after consultation with the public
  safety director of the Department of Public Safety, may designate a
  country of which a governmental entity, company or other entity, or
  citizen shall be subject to this subchapter.
         (b)  The governor shall consult the Homeland Security
  Council established under Subchapter B, Chapter 421, Government
  Code, for purposes of making a designation under this section.
         Sec. 5.255.  INVESTIGATION AND ENFORCEMENT BY ATTORNEY
  GENERAL; LAW ENFORCEMENT REFERRAL.  (a)  The attorney general shall
  establish procedures to examine a transfer of real property and
  determine whether an investigation of a possible violation of this
  subchapter is warranted.
         (b)  If the attorney general determines that an
  investigation of a transfer of real property is warranted under
  this section, the attorney general:
               (1)  shall investigate the transfer of real property
  and determine whether a violation of this subchapter occurred;
               (2)  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; and
               (3)  may refer the matter to the appropriate local,
  state, or federal law enforcement agency.
         Sec. 5.256.  DIVESTITURE; APPOINTMENT OF RECEIVER;
  DISTRIBUTION OF SALE PROCEEDS.  (a)  If the district court finds
  that the real property subject to an action brought under Section
  5.255 was purchased or otherwise acquired by an individual 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 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.
         (c)  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 and then
  to pay a fine assessed under Section 5.257(c). The remaining
  proceeds shall be remitted to the comptroller for deposit in the
  general revenue fund.
         Sec. 5.257.  OFFENSE; PENALTY.  (a)  A person commits an
  offense if the person:
               (1)  is an individual domiciled in a designated
  country; and
               (2)  intentionally or knowingly purchases or otherwise
  acquires title to real property in this state.
         (b)  An offense under Subsection (a) is a state jail felony.
         (c)  A company or entity that the attorney general determines
  under Section 5.255(b) to have violated this subchapter shall pay
  to this state a fine equal to the greater of:
               (1)  $250,000; or
               (2)  50 percent of the market value of the real property
  that is the subject of the violation.
         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.