Foreign Land Bill Makes Current Owners Sell By March 2026

The text as introduced · 448 words

89R8288 DRS-D

By: Leo Wilson
H.B. No. 2628

A BILL TO BE ENTITLED

AN ACT

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

by foreign organizations.

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 FOREIGN ORGANIZATIONS

Sec. 5.251. DEFINITIONS. In this subchapter, "governing

authority," "governing person," and "organization" have the

meanings assigned by Section 1.002, Business Organizations Code.

Sec. 5.252. ORGANIZATION UNDER CONTROL OF INDIVIDUAL OR

ANOTHER ORGANIZATION. (a) For purposes of this subchapter, an

organization is under the control of an individual or another

organization if the controlling individual or organization is

authorized to:

(1) direct the activities of the controlled

organization;

(2) make or direct others to make legal commitments on

behalf of the controlled organization; or

(3) hire and fire a principal decision maker of the

controlled organization.

(b) The authority of the controlling individual or

organization under Subsection (a) may derive from:

(1) exercise of a voting ownership interest of the

controlled organization sufficient to elect a governing person or

governing authority of the controlled organization to exercise on

the controlling individual's or organization's behalf the authority

described by Subsection (a); or

(2) a financial, legal, practical, contractual, or

other arrangement that functionally enables the controlling

individual or organization to exercise the authority described by

Subsection (a).

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) 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; or

(2) an organization that is owned by or under the

control of:

(A) an organization described by Subdivision

(1);

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

permanent resident of the United States; or

(C) a foreign government.

Sec. 5.2531. INTEREST ACQUIRED BEFORE SEPTEMBER 1, 2025.

Notwithstanding Section 5.253, a person described by that section

may continue to hold an interest in real property acquired before

September 1, 2025, until March 1, 2026, but must divest the person's

interest in the real property before that date. This section

expires January 1, 2027.

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