Little’s Foreign Land Bill Makes Every Non-Citizen Report Texas Property

The text as introduced · 1,750 words

By: Little
H.B. No. 1743

A BILL TO BE ENTITLED

AN ACT

relating to the holding or acquisition of an interest in real

property by or on behalf of certain foreign individuals or

entities; establishing an agricultural intelligence office;

creating a criminal offense.

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

SECTION 1. This Act may be cited as the Protect Texas Land

Act.

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. HOLDING OR ACQUISITION OF REAL PROPERTY INTERESTS BY

FOREIGN INDIVIDUALS OR ENTITIES

Sec. 5.251. DEFINITIONS. In this subchapter:

(1) "Agricultural land" means land located in this

state that is suitable for:

(A) use in production of plants and fruits grown

for human or animal consumption, or plants grown for the production

of fibers, floriculture, viticulture, horticulture, or planting

seed; or

(B) domestic or native farm or ranch animals kept

for use or profit.

(2) "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.

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

"organization" have the meanings assigned by Section 1.002,

Business Organizations Code.

(4) "Real property" means:

(A) land, including agricultural land;

(B) an improvement;

(C) a mine or quarry;

(D) a mineral in place; or

(E) standing timber.

(5) "Significant interest" and "substantial control"

mean:

(A) ownership of at least 33 percent of the

voting ownership interest of an organization necessary to elect a

governing person or governing authority of an organization, whether

held by:

(i) one individual, organization, or

entity; or

(ii) more than one individual,

organization, or entity acting in concert with respect to the

interest; or

(B) ownership of at least 50 percent of the

voting ownership interest described by Paragraph (A) held by more

than one individual, organization, or entity regardless of whether

the individuals, organizations, or entities are acting in concert

with respect to the interest.

Sec. 5.252. REPORT OF HOLDING OR TRANSACTION REQUIRED;

OFFENSE. (a) The following persons shall report to the attorney

general any interest in real property in this state held, acquired,

or sold by the person:

(1) an individual who is not a citizen of the United

States;

(2) an organization that:

(A) is organized under the laws of a foreign

government; or

(B) has its principal place of business outside

of the United States;

(3) an organization in which a significant interest or

of which substantial control is directly or indirectly held or

capable of being exercised by:

(A) an individual who is not a citizen or lawful

permanent resident of the United States; or

(B) a governmental entity of a foreign

government; or

(4) a governmental entity of a foreign government.

(b) A person described by Subsection (a) shall report to the

attorney general any interest in real property acquired or sold by

the person not later than the 90th day after the date of the

acquisition or sale that is the subject of the report.

(b-1) A person described by Subsection (a) shall, not later

than April 1, 2026, report to the attorney general any interest in

agricultural land or other real property held by the person on

September 1, 2025. This subsection expires September 1, 2029.

(c) A report under this section must:

(1) identify the person holding, acquiring, or selling

the interest in real property that is the subject of the report; and

(2) include any other relevant information required by

the attorney general.

(d) The attorney general shall prescribe a form for the

report required by this section.

(e) A person commits an offense if the person intentionally

or knowingly:

(1) fails to report an interest in real property held,

acquired, or sold by the person as required by this section; or

(2) makes a report under this section that conceals or

falsely represents the identity of a person holding, acquiring, or

selling an interest in real property.

(f) An offense under this section is a state jail felony.

Sec. 5.253. PROHIBITION ON HOLDING OR ACQUISITION OF

INTEREST IN AGRICULTURAL LAND BY CERTAIN PERSONS. (a) Subject to

Subsection (b) and notwithstanding any other law, the following

persons may not hold or acquire an interest in agricultural land in

this state:

(1) an individual citizen or resident of a country

that is subject to an arms embargo under 22 C.F.R. Section 126.1 who

is:

(A) not a citizen of the United States; and

(B) not a resident of this state;

(2) a governmental entity of or organization organized

under the law of a country that is subject to an arms embargo under

22 C.F.R. Section 126.1;

(3) an organization in which a significant interest or

of which substantial control is directly or indirectly held or

capable of being exercised by an individual, organization, or

governmental entity described by Subdivision (1) or (2);

(4) an entity of particular concern designated in the

United States secretary of state's most recent designations under

the International Religious Freedom Act of 1998 (22 U.S.C. Section

6401 et seq.); or

(5) an agent, trustee, or other fiduciary of an

individual, organization, or entity described by this subsection.

(a-1) Notwithstanding Subsection (a), a person described by

Subsection (a) may continue to hold an interest in agricultural

land acquired before September 1, 2025, until September 1, 2027,

but must divest the person's interest in the agricultural land

before that date. This subsection expires January 1, 2028.

(b) An individual who holds an interest in agricultural land

in this state while a resident of this state is not required to

divest the individual's interest in the agricultural land before

the second anniversary of the date the individual no longer resides

in this state if the individual's change in residence makes the

individual ineligible to hold an interest in agricultural land

under Subsection (a).

Sec. 5.254. PROHIBITION ON HOLDING OR ACQUISITION OF

INTEREST IN ANY REAL PROPERTY BY CERTAIN ORGANIZATIONS. (a)

Notwithstanding any other law, an organization that is under the

control of an individual, organization, or entity described by

Section 5.253(a) may not hold or acquire an interest in any real

property in this state.

(b) A person may not hold or acquire any interest in real

property in this state as an agent, trustee, or other fiduciary of

an organization described by Subsection (a).

(c) Notwithstanding Subsections (a) and (b), a person

described by Subsection (a) or (b) may continue to hold an interest

in real property acquired before September 1, 2025, until September

1, 2027, but must divest the person's interest in the real property

before that date. This subsection expires January 1, 2028.

Sec. 5.255. ATTORNEY GENERAL ENFORCEMENT; FORCED SALE. (a)

If the attorney general receives a report of a violation of Section

5.253 or 5.254 from the office of agricultural intelligence under

Section 12.052, Agriculture Code, or any other person, the attorney

general:

(1) may issue subpoenas requiring the appearance of

witnesses, production of relevant records, or giving of relevant

testimony; and

(2) if the attorney general determines that a

violation of Section 5.253 or 5.254 has occurred, shall bring an

action as provided by Subsection (b).

(b) If the attorney general determines that a person holds

an interest in real property in this state in violation of Section

5.253 or 5.254, the attorney general shall bring an action in a

district court in a county in which all or part of the real property

is located.

(c) If the district court finds that the interest in real

property that is the subject of the action is held in violation of

Section 5.253 or 5.254, 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) directs the sheriff or constable for each county

where any part of the real property is located to seize and conduct

a public sale of the property in the manner that similar property is

sold under execution.

(d) The attorney general shall record in the real property

records of each county in which any part of the real property is

located:

(1) notice of the filing of the action; and

(2) a copy of the district court's order under

Subsection (c).

Sec. 5.256. OFFENSES. (a) A person commits an offense if

the person intentionally or knowingly holds or acquires an interest

in real property in this state in violation of Section 5.253 or

5.254.

(b) An individual director, officer, agent, or employee of

an organization described by Section 5.253(a) or 5.254(a) commits

an offense if the individual intentionally or knowingly causes the

organization to hold or acquire an interest in real property in this

state in violation of Section 5.253 or 5.254.

(c) An offense under this section is a state jail felony.

Sec. 5.257. 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 Section 5.253 or 5.254 by a former owner or holder of

an interest in the property.

Sec. 5.258. 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. Chapter 12, Agriculture Code, is amended by

adding Section 12.052 to read as follows:

Sec. 12.052. AGRICULTURAL INTELLIGENCE OFFICE. (a) The

department shall establish and maintain an agricultural

intelligence office that operates under the direction of the

commissioner.

(b) The agricultural intelligence office:

(1) shall collect and analyze information concerning

the holding or acquisition of agricultural land in this state in

violation of Subchapter H, Chapter 5, Property Code;

(2) shall administer and enforce the provisions of

Subchapter H, Chapter 5, Property Code, with respect to

agricultural land;

(3) shall report to the attorney general a violation

of Subchapter H, Chapter 5, Property Code, if the office determines

that a violation has occurred with respect to agricultural land;

and

(4) may designate employees who are peace officers to

perform the duties provided under this subsection.

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