HB1743 - 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.

      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                [Text truncated for display. 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