HB1566 - Relating to the purchase of or acquisition of title to real property by certain foreign entities.

  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.