Kerwin Foreign Property Bill Can Reach Dual Citizens’ Companies

The text as introduced · 649 words

89R2478 DRS-D

By: Kerwin
H.B. No. 2389

A BILL TO BE ENTITLED

AN ACT

relating to prohibiting the purchase of or acquisition of title to

real property by and contracts or other agreements with certain

aliens or 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 INDIVIDUALS OR ENTITIES

Sec. 5.251. DEFINITION. In this subchapter, "control"

means ownership of, or the power to directly or indirectly vote, 50

percent or more of the outstanding voting interests of a company or

other entity, and includes ownership by an individual through one

or more legal entities.

Sec. 5.252. EXCEPTION: UNITED STATES CITIZENS AND LAWFUL

PERMANENT RESIDENTS. This subchapter does not apply to an

individual who is a citizen or lawful permanent resident of the

United States, including an individual who is a citizen of a foreign

country.

Sec. 5.253. PROHIBITION ON PURCHASE OF OR ACQUISITION OF

TITLE TO REAL PROPERTY. Except as provided by Section 5.252 and

notwithstanding any other law, the following may not purchase or

otherwise acquire title to real property in this state:

(1) a governmental entity of China, Iran, North Korea,

or Russia;

(2) a company or other entity that is:

(A) headquartered in China, Iran, North Korea, or

Russia;

(B) directly or indirectly under the control of

the government of China, Iran, North Korea, or Russia; or

(C) owned by or under the control of one or more

individuals who are citizens of China, Iran, North Korea, or

Russia;

(3) a company or other entity that is owned by or under

the control of a company or entity described by Subdivision (2); or

(4) an individual who is a citizen of China, Iran,

North Korea, or Russia.

SECTION 3. Subtitle F, Title 10, Government Code, is

amended by adding Chapter 2278 to read as follows:

CHAPTER 2278. PROHIBITION ON CONTRACTS WITH CERTAIN FOREIGN

INDIVIDUALS OR ENTITIES

Sec. 2278.001. DEFINITIONS. In this chapter:

(1) "Adverse foreign entity" means a governmental

entity or a company or other entity described by Section 5.253,

Property Code.

(2) "Governmental entity" has the meaning assigned by

Section 2251.001.

Sec. 2278.002. PROHIBITED CONTRACTS. (a) This section

does not apply to an individual who is a citizen or lawful permanent

resident of the United States, including an individual who is a

citizen of a foreign country.

(b) In this section, "public money" means money of this

state, a state agency, or a political subdivision of this state or

money the state, state agency, or political subdivision controls or

directs.

(c) Except as provided by Subsection (a), a governmental

entity may not enter into a contract or other agreement payable with

public money with:

(1) an adverse foreign entity; or

(2) an individual who is a citizen of China, Iran,

North Korea, or Russia.

SECTION 4. (a) Subchapter H, Chapter 5, Property Code, as

added by this Act, applies 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.

(b) Chapter 2278, Government Code, as added by this Act,

applies only to a contract or other agreement entered into on or

after the effective date of this Act.

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