Patterson Bill Bars Threat-Report Countries From Buying Texas Land

The text as introduced · 725 words

89R3251 DRS-F

By: Patterson
H.B. No. 1566

A BILL TO BE ENTITLED

AN ACT

relating to the purchase of or acquisition of title to real property

by certain foreign entities.

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

SECTION 1. 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 2. 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 ENTITIES

Sec. 5.251. DEFINITIONS. In this subchapter:

(1) "Control" means the right to exercise more than 50

percent of an organization's voting interests to elect the

governing authority or governing person of the organization.

(2) "Designated country" means 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

each of the three most recent Annual Threat Assessments of the U.S.

Intelligence Community issued pursuant to Section 108B, National

Security Act of 1947 (50 U.S.C. Section 3043b).

(3) "Governing authority," "governing person," and

"organization" have the meanings assigned by Section 1.002,

Business Organizations Code.

(4) "Real property" means:

(A) land;

(B) an improvement;

(C) a mine or quarry;

(D) a mineral in place;

(E) standing timber; or

(F) an estate or interest, other than:

(i) a mortgage or deed of trust creating a

lien on or an interest securing payment or performance of an

obligation in property described by Paragraphs (A) through (E); or

(ii) a leasehold estate in land or an

improvement for a term of five or fewer years.

Sec. 5.252. 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) an organization that is:

(A) headquartered in a designated country; or

(B) directly or indirectly under the control of

the government of a designated country; or

(3) an organization that is under the control of an

organization described by Subdivision (2).

Sec. 5.253. ATTORNEY GENERAL ENFORCEMENT. (a) If the

attorney general has reason to believe that an entity has purchased

or otherwise acquired title to real property in violation of

Section 5.252, 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 subject to the violation is located.

(b) The attorney general shall record notice of an action

brought under Subsection (a) in the real property records of each

county where any part of the real property subject to the action is

located.

(c) If the district court finds that the real property

subject to an action brought under Subsection (a) was purchased or

otherwise acquired by an entity in violation of Section 5.252, the

court shall enter an order stating that finding and appoint a

receiver to manage, control, and sell the real property.

(d) 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.

(e) A purchase of or acquisition of title to real property

in violation of Section 5.252 is not void because of the violation,

and the validity or enforceability by any person of a purchase

contract for or the conveyance of the real property is not otherwise

affected by the violation.

SECTION 3. 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 4. 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 5. This Act takes effect September 1, 2025.