West Property Fraud Bill Overlaps Offenses Already On The Books

The text as introduced · 5,964 words

89R5882 DRS-D

By: West
S.B. No. 2611

A BILL TO BE ENTITLED

AN ACT

relating to the status of certain documents or instruments

concerning real or personal property; creating the criminal

offenses of real property theft and real property fraud and

establishing a statute of limitations for those offenses;

harmonizing other statute of limitations provisions; increasing a

criminal penalty.

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

SECTION 1. Article 12.01, Code of Criminal Procedure, as

amended by Chapters 93 (S.B. 1527), 118 (H.B. 467), 127 (H.B. 1207),

422 (H.B. 1769), 520 (H.B. 3025), 689 (H.B. 1506), 704 (H.B. 2019),

709 (H.B. 2190), 768 (H.B. 4595), 830 (H.B. 2187), 885 (H.B. 4635),

and 1041 (S.B. 129), Acts of the 88th Legislature, Regular Session,

2023, is reenacted and amended to read as follows:

Art. 12.01. FELONIES. Except as provided in Articles

12.015 and 12.03, felony indictments may be presented within these

limits, and not afterward:

(1) no limitation:

(A) murder and manslaughter;

(B) sexual assault under Section 22.011(a)(2),

Penal Code, or aggravated sexual assault under Section

22.021(a)(1)(B), Penal Code;

(C) sexual assault, if:

(i) during the investigation of the offense

biological matter is collected and the matter:

(a) has not yet been subjected to

forensic DNA testing; or

(b) has been subjected to forensic DNA

testing and the testing results show that the matter does not match

the victim or any other person whose identity is readily

ascertained; or

(ii) probable cause exists to believe that

the defendant has committed the same or a similar sex offense

against five or more victims;

(D) continuous sexual abuse of young child or

disabled individual under Section 21.02, Penal Code;

(E) indecency with a child under Section 21.11,

Penal Code;

(F) an offense involving leaving the scene of a

collision under Section 550.021, Transportation Code, if the

collision resulted in the death of a person;

(G) trafficking of persons under Section

20A.02(a)(7) or (8), Penal Code;

(H) continuous trafficking of persons under

Section 20A.03, Penal Code;

(I) compelling prostitution under Section

43.05(a)(2) or (3), Penal Code; [ or ]

(J) tampering with physical evidence under

Section 37.09(a)(1) or (d)(1), Penal Code, if:

(i) the evidence tampered with is a human

corpse, as defined by that section; or

(ii) the investigation of the offense shows

that a reasonable person in the position of the defendant at the

time of the commission of the offense would have cause to believe

that the evidence tampered with is related to a criminal homicide

under Chapter 19, Penal Code;

(K) [ (J) ] interference with child custody under

Section 25.03(a)(3), Penal Code; or

(L) [ (J) ] burglary under Section 30.02, Penal

Code, if:

(i) the offense is punishable under

Subsection (d) of that section because the defendant entered a

habitation with the intent to commit an offense under Section

22.011 or 22.021, Penal Code; and

(ii) during the investigation of the

offense biological matter is collected and the matter:

(a) has not yet been subjected to

forensic DNA testing; or

(b) has been subjected to forensic DNA

testing and the testing results show that the matter does not match

the victim or any other person whose identity is readily

ascertained;

(2) ten years from the date of the commission of the

offense:

(A) theft of any estate, real, personal or mixed,

by an executor, administrator, guardian or trustee, with intent to

defraud any creditor, heir, legatee, ward, distributee,

beneficiary or settlor of a trust interested in such estate;

(B) theft by a public servant of government

property over which the public servant exercises control in the

public servant's official capacity;

(C) forgery or the uttering, using, or passing of

forged instruments;

(D) injury to an elderly or disabled individual

punishable as a felony of the first degree under Section 22.04,

Penal Code;

(E) sexual assault, except as provided by

Subdivision (1) or (9) [ (8) ];

(F) arson;

(G) trafficking of persons under Section

20A.02(a)(1), (2), (3), or (4), Penal Code; [ or ]

(H) compelling prostitution under Section

43.05(a)(1), Penal Code;

(I) real estate theft under Section 31.22, Penal

Code; or

(J) real estate fraud under Section 32.56, Penal

Code;

(3) seven years from the date of the commission of the

offense:

(A) misapplication of fiduciary property or

property of a financial institution;

(B) fraudulent securing of document execution;

(C) a felony violation under Chapter 162, Tax

Code;

(D) false statement to obtain property or credit

under Section 32.32, Penal Code;

(E) money laundering;

(F) credit card or debit card abuse under Section

32.31, Penal Code;

(G) fraudulent use or possession of identifying

information under Section 32.51, Penal Code;

(H) exploitation of a child, elderly individual,

or disabled individual under Section 32.53, Penal Code;

(I) health care fraud under Section 35A.02, Penal

Code;

(J) bigamy under Section 25.01, Penal Code,

except as provided by Subdivision (7); or

(K) possession or promotion of child pornography

under Section 43.26, Penal Code;

(4) five years from the date of the commission of the

offense:

(A) theft or robbery;

(B) except as provided by Subdivision (5),

kidnapping;

(C) [ (B-1) ] except as provided by Subdivision

(1) or (5), burglary;

(D) [ (C) ] injury to an elderly or disabled

individual that is not punishable as a felony of the first degree

under Section 22.04, Penal Code;

(E) [ (D) ] abandoning or endangering an [ a

child, ] elderly [ individual, ] or disabled individual;

(F) [ (E) ] insurance fraud;

(G) [ (F) ] assault under Section 22.01, Penal

Code, if the assault was committed against a person whose

relationship to or association with the defendant is described by

Section 71.0021(b), 71.003, or 71.005, Family Code;

(H) [ (G) ] continuous violence against the family

under Section 25.11, Penal Code; or

(I) [ (H) ] aggravated assault under Section

22.02, Penal Code;

(5) if the investigation of the offense shows that the

victim is younger than 17 years of age at the time the offense is

committed, 20 years from the 18th birthday of the victim of one of

the following offenses:

(A) kidnapping under Section 20.03, Penal Code,

or aggravated kidnapping under Section 20.04, Penal Code; or

(B) subject to Subdivision (1)(L) [ (1)(J) ],

burglary under Section 30.02, Penal Code, if the offense is

punishable under Subsection (d) of that section because the

defendant entered a habitation with the intent to commit an offense

described by Subdivision (1)(B) or (D) of this article or Paragraph

(A) of this subdivision;

(6) 20 years from the 18th birthday of the victim of

one of the following offenses:

(A) trafficking of a child [ persons ] under

Section 20A.02(a)(5) or (6), Penal Code; or

(B) sexual performance by a child under Section

43.25, Penal Code;

(7) ten years from the 18th birthday of the victim of

the offense:

(A) injury to a child under Section 22.04, Penal

Code;

(B) bigamy under Section 25.01, Penal Code, if

the investigation of the offense shows that the person, other than

the legal spouse of the defendant, whom the defendant marries or

purports to marry or with whom the defendant lives under the

appearance of being married is younger than 18 years of age at the

time the offense is committed; or

(C) [ (D) ] abandoning or endangering a child;

(8) [ (7) ] ten years from the date the offense was

discovered: trafficking of a disabled individual under Section

20A.02(a)(5) or (6), Penal Code;

(9) [ (8) ] two years from the date the offense was

discovered: sexual assault punishable as a state jail felony under

Section 22.011(f)(2), Penal Code; or

(10) [ (9) ] three years from the date of the commission

of the offense: all other felonies.

SECTION 2. Title 1, Code of Criminal Procedure, is amended

by adding Chapter 5C to read as follows:

CHAPTER 5C. PROCEDURES FOR REAL PROPERTY THEFT

Art. 5C.001. VERDICT; JUDGMENT. (a) If an offense under

Section 31.22, Penal Code, involves more than one parcel of real

property:

(1) for a case determined by a trial by jury:

(A) the verdict form shall clearly identify each

parcel of real property by street address or legal description of

the real property;

(B) the jury foreperson shall indicate whether

the jury unanimously finds that the parcel of real property is

included in the conduct constituting the offense; and

(C) the judgment must reflect the jury's verdict

for each parcel of real property that the jury unanimously finds to

be included in the conduct constituting the offense;

(2) for a case determined by a judge without a jury:

(A) the judge in rendering the verdict shall

state, for each parcel of real property, whether the judge finds the

property to be included in the conduct constituting the offense;

and

(B) the judgment must reflect the judge's finding

for each parcel of real property that the judge finds to be included

in the conduct constituting the offense; and

(3) for a case determined based on the defendant's

plea, if the indictment does not clearly identify each parcel of

real property alleged to be included in the conduct constituting

the offense, the prosecutor shall provide that information to the

court. The court shall include the information in the judgment.

(b) A judgment of conviction entered for an offense under

Section 31.22, Penal Code, must include:

(1) the street address or legal description of the

real property; and

(2) for each document that relates to the real

property that is the subject of the offense and that is recorded in

the real property records of the county, the identifying reference

number assigned to that document by the county clerk.

Art. 5C.002. JUDGMENT TO BE FILED WITH COUNTY CLERK. Not

later than the 10th day after the date the court enters a judgment

for an offense under Section 31.22, Penal Code, the prosecutor or

the court clerk, as determined by local court rule, shall file with

the county clerk:

(1) a certified copy of the judgment for recording in

the real property records of the county where the real property that

is the subject of the offense is located;

(2) a statement explaining the filing; and

(3) if the judgment does not comply with Article

5C.001(b), a certified copy of the indictment.

Art. 5C.003. EFFECT OF NONCOMPLIANCE ON JUDGMENT. A

judgment for an offense under Section 31.22, Penal Code, is not

invalid solely because the judgment fails to comply with Article

5C.001(b) or 5C.002.

SECTION 3. Chapter 42, Code of Criminal Procedure, is

amended by adding Article 42.0376 to read as follows:

Art. 42.0376. MANDATORY RESTITUTION FOR REAL ESTATE THEFT.

(a) Except as provided by Subsection (b) and subject to Subsection

(c), the court shall order a defendant convicted of an offense under

Section 31.22, Penal Code, to pay restitution, as applicable:

(1) for an offense under Section 31.22(b)(1), to the

owner of the real property or nonpossessory interest in real

property that is the subject of the offense in an amount equal to

the value of the real property or nonpossessory interest;

(2) for an offense under Section 31.22(b)(2), to the

owner of the benefit that is the subject of the offense in an amount

equal to the value of the benefit;

(3) to a title company or insurer that paid a claim

based on the conduct constituting the offense, in an amount equal to

the value of the payment made by the title company or insurer; or

(4) to the owner of the real property or nonpossessory

interest in real property or the owner of the benefit in an amount

equal to, as applicable:

(A) the value of losses incurred as the result of

the conduct constituting the offense, including loss of personal

property located on or in the real property that is the subject of

the offense;

(B) the cost of repairing damage caused by or

resulting from the conduct constituting the offense; or

(C) reasonable attorney's fees and court costs

related to an action brought to quiet title to or dispute the

conveyance or possession of the real property that is the subject of

the offense.

(b) The court may not order a defendant convicted of an

offense under Section 31.22(b)(1), Penal Code, to pay restitution

if, before judgment is entered in the case, the defendant:

(1) with respect to the real property or nonpossessory

interest in real property that is the subject of the offense,

executes a quitclaim deed or other instrument conveying the title

or interest to the owner of the property or interest if the

defendant is listed as the owner of the property or interest in the

county real property records;

(2) files for recording in the county property records

a copy of the quitclaim deed or other instrument; and

(3) files a certified copy of the recorded quitclaim

deed or other instrument with the court.

(c) The court shall reduce the amount of restitution that a

defendant is ordered to pay under this article by an amount equal to

the value of a payment made by a title company or insurer for a claim

based on the conduct constituting the offense to the person to whom

the court orders the defendant to pay restitution.

SECTION 4. Sections 51.901(c) and (e), Government Code, are

amended to read as follows:

(c) For purposes of this section, a document or instrument

is presumed to be fraudulent if:

(1) the document is a purported judgment or other

document purporting to memorialize or evidence an act, an order, a

directive, or process of:

(A) a purported court or a purported judicial

entity not expressly created or established under the constitution

or the laws of this state or of the United States; or

(B) a purported judicial officer of a purported

court or purported judicial entity described by Paragraph (A);

(2) the document or instrument purports to create a

lien or assert a claim against real or personal property or an

interest in real or personal property and all of the following are

true :

(A) the document or instrument is not a document

or instrument provided for by the constitution or laws of this state

or of the United States;

(B) the document or instrument is not created by

implied or express consent or agreement of the obligor, debtor, or

the owner of the real or personal property or an interest in the

real or personal property, if required under the laws of this state,

or by implied or express consent or agreement of an agent,

fiduciary, or other representative of that person; and [ or ]

(C) the document or instrument is not an

equitable, constructive, or other lien imposed by a court with

jurisdiction created or established under the constitution or laws

of this state or of the United States; [ or ]

(3) the document or instrument purports to create a

lien or assert a claim against real or personal property or an

interest in real or personal property and the document or

instrument is filed by an inmate or on behalf of an inmate ; or

(4) the document or instrument purports to create a

lien or assert a claim against real or personal property or an

interest in real or personal property and the document or

instrument is referenced in a certified copy of the judgment for an

offense under Chapter 31, 32, or 37, Penal Code .

(e) A presumption under Subsection (c)(3) may be rebutted by

providing the filing officer in the filing office in which the

document is filed or recorded the original or a copy of a sworn and

notarized document signed by the obligor, debtor, or owner of the

property or interest that is designated in the document or

instrument that purports to create a lien or assert a claim against

the property or interest [ as collateral ] stating that the person

entered into an [ a security ] agreement with the inmate , including a

security agreement for which the obligor, debtor, or owner of the

property or interest [ and ] authorized the filing of the financing

statement as provided by Section 9.509, Business & Commerce Code.

SECTION 5. The heading to Section 51.903, Government Code,

is amended to read as follows:

Sec. 51.903. ACTION ON FRAUDULENT DOCUMENT OR INSTRUMENT

[ LIEN ON PROPERTY ].

SECTION 6. Sections 51.903(a), (b), (c), (e), and (g),

Government Code, are amended to read as follows:

(a) A person who owns real or personal property or an

interest in real or personal property that is the subject of a

document or instrument recorded in or filed for recording in the

records of a county, or a person who is the purported debtor or

obligor named in the document or instrument, [ or who owns real or

personal property or an interest in real or personal property and ]

who has reason to believe that the document or instrument

[ purporting to create a lien or a claim against the real or personal

property or an interest in the real or personal property previously

filed or submitted for filing and recording ] is fraudulent may

complete and file with the district clerk a motion, verified as

required by Subsection (b) [ by affidavit by a completed form for

ordinary certificate of acknowledgment, of the same type described

by Section 121.007, Civil Practice and Remedies Code ], that

contains, at a minimum, the information in the following suggested

form:

MISC. DOCKET NO. ______

In Re: A Purported
In the ______ Judicial District

Lien or Claim Against
In and For ___________________

( Description of Property or Name of Purported
County, Texas

( Name of Purported
County, Texas

Debtor or Obligor )

Motion for Judicial Review of Document [ Documentation ] or

Instrument Purporting to Create [ a ] Lien or Assert Claim Against

Real or Personal Property

Now Comes (name) and files this motion requesting a judicial

determination of the status of a document [ documentation ] or [ an ]

instrument purporting to create a lien or assert a claim against [ an

interest in real or personal property or a lien or claim on ] real or

personal property or an interest in real or personal property filed

in the office of the Clerk of (county name) County, Texas, and in

support of the motion would show the court as follows:

I.

(Name), movant herein, is the [ purported obligor or debtor

or ] person who owns the real or personal property or the interest in

real or personal property described in or the purported obligor or

debtor named in the document [ documentation ] or instrument attached

to this motion .

II.

On (date), in the exercise of the county clerk's official

duties as County Clerk of (county name) County, Texas, the county

clerk received and filed and recorded the attached document

[ documentation ] or instrument [ attached hereto ] and containing

(number) pages and stamped the document or instrument with the

following instrument number or other reference number: (instrument

number or reference number) . The document [ Said documentation ] or

instrument purports to have created a lien or to assert a claim

against [ on ] real or personal property or an interest in real or

personal property [ against one (name of purported debtor) ]. The

real or personal property is described as follows:

Address of the real property:

Legal description of the real property (if different from the

legal description contained in the attached document or

instrument):

Description of personal property:

III.

Movant alleges that the attached document [ documentation ] or

instrument [ attached hereto ] is fraudulent, as described [ defined ]

by Section 51.901(c)(2), (3), or (4) [ 51.901(c)(2) ], Government

Code, and that a lien purported to be created or claim purported to

be asserted by the document [ documentation ] or instrument is not

valid [ should therefore not be accorded lien status ].

IV.

Movant attests that assertions herein are true and correct.

V.

Movant does not request the court to make a finding as to any

underlying claim of the parties involved and acknowledges that this

motion does not seek to invalidate a legitimate lien. Movant

further acknowledges that movant may be subject to sanctions, as

provided by Chapter 10, Civil Practice and Remedies Code, if this

motion is determined to be frivolous.

PRAYER

Movant requests the court to review the attached document

[ documentation ] or instrument and enter an order determining

whether the document or instrument creates a valid lien or asserts a

valid claim [ it should be accorded lien status ], together with such

other orders as the court deems appropriate.

Respectfully submitted,

_________________________

(Signature and typed name and address)

(b) A motion filed under Subsection (a) must be verified by

an affidavit in substantially the following form [ The completed

form for ordinary certificate of acknowledgment, of the same type

described by Section 121.007, Civil Practice and Remedies Code,

must be as follows ]:

AFFIDAVIT

THE STATE OF TEXAS

COUNTY OF ______________

BEFORE ME, the undersigned authority, personally appeared

_____________, who, being by me duly sworn, deposed as follows:

"My name is _________________. I am over 21 years of age, of

sound mind, with personal knowledge of the following facts, and

fully competent to testify.

I further attest that the assertions contained in the

accompanying motion are true and correct."

Further affiant sayeth not.

____________________________

SUBSCRIBED and SWORN TO before

me, this _______ day of _____,

_______.

____________________________

NOTARY PUBLIC, State of Texas

Notary's printed name:

____________________________

My commission expires:

____________________________

(c) A motion under this section may be ruled on by a district

judge having jurisdiction over real property matters in the county

where the subject document or instrument was filed. The court's

finding may be made solely on a review of the document

[ documentation ] or instrument attached to the motion and without

hearing any testimonial evidence. The court's review may be made ex

parte without delay or notice of any kind. An appellate court shall

expedite review of a court's finding under this section.

(e) After reviewing the document [ documentation ] or

instrument attached to a motion under this section, the district

judge shall enter an appropriate finding of fact and conclusion of

law, which must be filed and indexed in the same class of records in

which the subject document [ documentation ] or instrument was

originally filed. A copy of the finding of fact and conclusion of

law shall be sent, by first class mail, to the movant and to the

person who filed the document or instrument for recording

[ fraudulent lien or claim ] at the last known address of each person

within seven days of the date that the finding of fact and

conclusion of law is issued by the judge.

(g) A suggested form order appropriate to comply with this

section is as follows:

MISC. DOCKET NO. ______

In Re: A Purported
In the ______ Judicial District

Lien or Claim Against
In and For ___________________

( Description of Property or Name of Purported
County, Texas

( Name of Purported
County, Texas

Debtor or Obligor )

Judicial Finding of Fact and Conclusion of Law Regarding Document

[ a Documentation ] or Instrument Purporting to Create [ a ] Lien or

Assert Claim Against Real or Personal Property

On the (number) day of (month), (year), in the above entitled

and numbered cause, this court reviewed a motion, verified by

affidavit, of (name) and the document [ documentation ] or instrument

attached to the motion [ thereto ]. No testimony was taken from any

party, nor was there any notice of the court's review, the court

having made the determination that a decision could be made solely

on review of the document [ documentation ] or instrument under the

authority vested in the court under Subchapter J, Chapter 51,

Government Code.

The document or instrument bears the following instrument

number or other reference number: (instrument number or reference

number)

The real or personal property purported to be subject to the

lien created or claim asserted by the document or instrument is

described as follows:

Address of the real property:

Legal description of the real property (if different from the

legal description contained in the attached document or

instrument):

Description of the personal property:

The court finds and orders as follows (only an item checked

and initialed is a valid court ruling):

_______ The court DECLINES TO AGREE to find the document or

instrument invalid, because the court finds all of the following

conditions are true:

The document [ documentation ] or instrument attached to the

motion [ herein ] IS asserted against real or personal property or an

interest in real or personal property .

The document or instrument IS (the court must check and

initial at least one of the following) [ and ]:

_____ [ (1) IS ] provided for by specific state or

federal statutes or constitutional provisions;

_____ [ (2) IS ] created by implied or express consent

or agreement of the obligor, debtor, or the owner of the real or

personal property or an interest in the real or personal property,

if required under the laws of this state, or by implied or express

consent or agreement of an agent, fiduciary, or other

representative of that person; or

_____ [ (3) IS ] an equitable, constructive, or other

lien imposed by a court of competent jurisdiction created or

established under the constitution or laws of this state or of the

United States.

There is no apparent basis to presume the document or

instrument is fraudulent under Section 51.903(c), Government Code.

_______ The court AGREES and concludes as a matter of law that the

document or instrument attached to the motion does not create a

valid lien or assert a valid claim against real or personal property

or an interest in real or personal property based on a finding that

one or more of the following conditions is true (the court must

check and initial at least one of the following) [ The documentation

or instrument attached to the motion herein ]:

_____ The document or instrument is not asserted against real

or personal property or an interest in real or personal property.

There is no valid lien created or claim asserted by the document or

instrument.

_____ The document or instrument is presumed to be fraudulent

under Section 51.901(c)(2), Government Code, because it:

(1) IS NOT provided for by specific state or federal

statutes or constitutional provisions;

(2) IS NOT created by implied or express consent or

agreement of the obligor, debtor, or the owner of the real or

personal property or an interest in the real or personal property,

if required under the law of this state or by implied or express

consent or agreement of an agent, fiduciary, or other

representative of that person; and

(3) IS NOT an equitable, constructive, or other lien

imposed by a court of competent jurisdiction created by or

established under the constitution or laws of this state or the

United States[ ; or

[ (4) IS NOT asserted against real or personal property

or an interest in real or personal property. There is no valid lien

or claim created by this documentation or instrument ].

_____ The document or instrument is filed by an inmate or on

behalf of an inmate and is therefore presumed fraudulent under

Section 51.901(c)(3), Government Code.

_____ The document or instrument attached to the motion is

presumed fraudulent under Section 51.901(c)(4), Government Code,

because the document or instrument is referenced in a certified

copy of the judgment for an offense under Chapter 31, 32, or 37,

Penal Code, in the following criminal action:

Cause number: ________________________,

in the _____ court of _____ County, Texas,

dated _____.

This court makes no finding as to any underlying claims of the

parties involved, and expressly limits its finding of fact and

conclusion of law to the review of a ministerial act. The county

clerk shall record [ file ] this finding of fact and conclusion of law

in the same class of records as the subject document

[ documentation ] or instrument was originally recorded [ filed ], and

the court directs the county clerk to index it using the same names

that were used in indexing the subject document [ documentation ] or

instrument.

The court further orders thus: ____________________________

________________________________________________________________

_______________________________________________________________.

SIGNED ON THIS THE ________ DAY OF ____________________.

_______________________________

DISTRICT JUDGE

________ JUDICIAL DISTRICT

_____________ COUNTY, TEXAS

SECTION 7. Chapter 31, Penal Code, is amended by adding

Section 31.22 to read as follows:

Sec. 31.22. REAL PROPERTY THEFT. (a) In this section:

(1) "Nonpossessory interest" includes an interest

that may be conveyed by a quitclaim deed or conditional transfer.

(2) "Owner" includes an owner's known successors in

interest if the owner is deceased.

(3) "Transfer" has the meaning assigned by Section

12.019, Property Code.

(b) A person commits an offense if the person:

(1) brings about or attempts to bring about a transfer

or purported transfer of title to real property or a nonpossessory

interest in real property, to any transferee or intended

transferee:

(A) without the effective consent of the owner of

the real property or the nonpossessory interest in real property;

and

(B) with the intent to deprive the owner of the

real property or the nonpossessory interest in the real property;

or

(2) sells or otherwise transfers or encumbers, or

attempts to sell or otherwise transfer or encumber, title to real

property or a nonpossessory interest in real property to or with

respect to a person in exchange for a benefit from any person:

(A) without the effective consent of the owner of

the benefit; and

(B) with the intent to deprive the owner of the

benefit.

(c) Except as provided by Subsection (e), an offense under

Subsection (b)(1) is:

(1) a felony of the second degree if it is shown on the

trial of the offense that the market value of the real property is

less than $300,000; or

(2) a felony of the first degree if it is shown on the

trial of the offense that the market value of the real property is

$300,000 or more.

(d) Except as provided by Subsection (e), an offense under

Subsection (b)(2) is:

(1) a felony of the third degree if it is shown on the

trial of the offense that the value of the benefit received is less

than $30,000;

(2) a felony of the second degree if it is shown on the

trial of the offense that the value of the benefit received is

$30,000 or more but less than $150,000; or

(3) a felony of the first degree if it is shown on the

trial of the offense that the value of the benefit received is

$150,000 or more.

(e) An offense described for purposes of punishment by

Subsections (c) and (d) is increased to the next higher category of

offense if it is shown on the trial of the offense that at the time

of the offense:

(1) the owner of the real property or nonpossessory

interest in real property or the owner of the benefit was:

(A) a person 65 years of age or older; or

(B) a nonprofit organization; or

(2) the real property was subject to a property tax

exemption under Subchapter B, Chapter 11, Tax Code, as an

individual's residence homestead as defined by Section 11.13(j),

Tax Code.

(f) For purposes of Subsection (c), the market value of real

property is the market value of that property for the tax year in

which the offense was committed, as indicated on the appraisal roll

for the appraisal district in which the property is located.

(g) If conduct that constitutes an offense under this

section also constitutes an offense under another law, the actor

may be prosecuted under this section, the other law, or both.

SECTION 8. Subchapter D, Chapter 32, Penal Code, is amended

by adding Section 32.56 to read as follows:

Sec. 32.56. REAL PROPERTY FRAUD. (a) In this section:

(1) "Deception" has the meaning assigned by Section

31.01.

(2) "Document" and "effective consent" have the

meanings assigned by Section 32.46.

(b) A person commits an offense if the person:

(1) intentionally or knowingly makes a materially

false or misleading written statement to obtain real property; or

(2) with the intent to defraud or harm any person:

(A) causes another person, without that person's

effective consent, to sign or execute any document affecting real

property or any person's interest in real property; or

(B) causes a public servant, without the public

servant's effective consent, to file or record any purported

judgment or other document purporting to memorialize or evidence:

(i) title to real property or any person's

interest in real property; or

(ii) a lien or claim against real property

or against any person's interest in real property.

(c) Except as provided by Subsection (d), an offense under

this section is:

(1) a felony of the second degree if it is shown on the

trial of the offense that the market value of the real property is

less than $300,000; or

(2) a felony of the first degree if it is shown on the

trial of the offense that the market value of the real property is

$300,000 or more.

(d) An offense described for purposes of punishment by

Subsection (b) is increased to the next higher category of offense

if it is shown on the trial of the offense that at the time of the

offense:

(1) the owner of the real property was:

(A) a person 65 years of age or older; or

(B) a nonprofit organization; or

(2) the real property was subject to a property tax

exemption under Subchapter B, Chapter 11, Tax Code, as an

individual's residence homestead as defined by Section 11.13(j),

Tax Code.

(e) For purposes of Subsection (c), the market value of real

property is the market value of that property for the tax year in

which the offense was committed, as indicated on the appraisal roll

for the appraisal district in which the property is located.

SECTION 9. Section 37.101(b), Penal Code, is amended to

read as follows:

(b) An offense under Subsection (a)(1) is a felony of the

third degree, unless it is shown on the trial of the offense that

the person had previously been convicted under this section on two

or more occasions, in which event the offense is a felony of the

second degree. An offense under Subsection (a)(2) or (a)(3) is a

state jail felony [ Class A misdemeanor ], unless the person commits

the offense with the intent to defraud or harm another, in which

event the offense is a [ state jail ] felony of the third degree .

SECTION 10. The changes in law made by this Act apply only

to an offense committed on or after the effective date of this Act.

An offense committed before the effective date of this Act is

governed by the law in effect on the date the offense was committed,

and the former law is continued in effect for that purpose. For

purposes of this section, an offense was committed before the

effective date of this Act if any element of the offense was

committed before that date.

SECTION 11. The changes in law made by this Act in amending

Article 12.01, Code of Criminal Procedure, do not apply to an

offense if the prosecution of that offense becomes barred by

limitation before the effective date of this Act. The prosecution

of that offense remains barred as if this Act had not taken effect.

SECTION 12. This Act takes effect September 1, 2025.