HB2628 - Relating to the purchase of or acquisition of title to real property by foreign organizations.

  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.