HB2752 - Relating to the purchase of or acquisition of title to real property by certain aliens or foreign entities.

  89R2308 DRS-F     By: Vasut H.B. No. 2752       A BILL TO BE ENTITLED   AN ACT   relating to the purchase of or acquisition of title to real property   by certain aliens or foreign entities.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 64.001(a), Civil Practice and Remedies   Code, is amended to read as follows:          (a)  A court of competent jurisdiction may appoint a   receiver:                (1)  in an action by a vendor to vacate a fraudulent   purchase of property;                (2)  in an action by a creditor to subject any property   or fund to the creditor's [ his ] claim;                (3)  in an action between partners or others jointly   owning or interested in any property or fund;                (4)  in an action by a mortgagee for the foreclosure of   the mortgage and sale of the mortgaged property;                (5)  for a corporation that is insolvent, is in   imminent danger of insolvency, has been dissolved, or has forfeited   its corporate rights; [ or ]                (6)   in an action by the attorney general under   Subchapter H, Chapter 5, Property Code; or                    (7)   in any other case in which a receiver may be   appointed under the rules of equity.          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. PURCHASE OF OR ACQUISITION OF TITLE TO REAL PROPERTY   BY CERTAIN FOREIGN INDIVIDUALS OR ENTITIES           Sec. 5.251.  DEFINITIONS. In this subchapter:                 (1)     "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.                 (2)  "Designated country" means:                       (A)     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 an Annual Threat   Assessment of the U.S. Intelligence Community issued pursuant to   Section 108B, National Security Act of 1947 (50 U.S.C. Section   3043b) during the three-year period preceding the date of a   purchase or acquisition subject to this subchapter; or                       (B)     a country that at any time during the   three-year period preceding the date of a purchase or acquisition   subject to this subchapter has been:                             (i)     designated by the United States   secretary of state as a state sponsor of terrorism; or                             (ii)     subject to sanctions by the United   States Department of the Treasury Office of Foreign Assets Control   relating to the sale or transfer of arms, munitions, or technology.                 (3)     "Governing authority," "governing person," and   "organization" have the meanings assigned by Section 1.002,   Business Organizations Code.                 (4)     "Governing political party"   means a political   organization any member of which occupies the highest executive   office of a country.                 (5)  "Real property" means:                       (A)  land;                       (B)  an improvement;                       (C)  a mine or quarry;                       (D)  a mineral in place; or                       (E)  standing timber.           Sec.   5.252.     EXCEPTIONS: UNITED STATES CITIZENS AND LAWFUL   PERMANENT RESIDENTS; RESIDENCE HOMESTEAD PROPERTY. (a)     This   subchapter does not apply to:                 (1)     an individual who is a citizen or lawful permanent   resident of the United States, including an individual who is a   citizen of a foreign country; or                 (2)     an organization that is owned by or under the   control of one or more individuals described by Subdivision (1).           (b)  This subchapter does not apply to real property that is:                 (1)     intended for use as an individual's residence   homestead, as defined by Section 11.13(j), Tax Code; or                 (2)     owned by a governmental entity as a foreign   consulate or embassy of the entity as recognized by the United   States Department of State.           (c)     This subchapter does not apply to a leasehold interest   in land or improvements constructed upon a leasehold.           Sec.   5.253.     PROHIBITION ON PURCHASE OF OR ACQUISITION OF   TITLE TO REAL PROPERTY. Except as provided by Section 5.252 and   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)     the governing political party of a designated   country;                 (3)     an organization that at any time during the   three-year period preceding the purchase or acquisition has been   designated as a foreign terrorist organization by the United States   secretary of state under 8 U.S.C. Section 1189;                 (4)     an individual that at any time during the   three-year period preceding the purchase or acquisition has been   subject to sanctions by the United States Department of the   Treasury Office of Foreign Assets Control as a specially designated   national;                 (5)  an organization that is:                       (A)     under the control of the government or   governing political party of a designated country; or                       (B)  owned by or under the control of:                             (i)     one or more individuals who are elected   or appointed officials or employees of the government or members of   the governing political party of a designated country; or                             (ii)     an individual or organization   described by Subdivision (3) or (4);                 (6)     an organization that is owned by or under the   control of an organization described by Subdivision (5); or                   (7)  an individual who:                       (A)     is or at any time during the 10-year period   preceding the purchase or acquisition has been an elected or   appointed official or employee of the government or member of the   governing political party of a designated country;                       (B)     is related within the third degree by   consanguinity or within the second degree by affinity, as   determined under Chapter 573, Government Code, to an individual   described by this section; or                       (C)     is a citizen of a designated country and is   not lawfully present in the United States.           Sec.   5.254.     ATTORNEY GENERAL ENFORCEMENT. If the attorney   general has a reasonable suspicion that the purchase of or   acquisition of title to real property in this state by an   individual, organization, or entity in violation of this subchapter   creates a risk to the health, safety, and welfare of the public, 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   that is the subject of the violation is located.           Sec.   5.255.     DISCOVERY; SECRETARY OF STATE INTERROGATORIES   AND RECORDS. (a)     The attorney general may conduct discovery in an   action brought under Section 5.254.           (b)     The secretary of state shall on request by the attorney   general:                 (1)     serve interrogatories on an individual,   organization, or entity as necessary to determine the ownership or   control of an organization or entity that is the subject of an   action by the attorney general under Section 5.254; and                 (2)     provide to the attorney general all records held   by the secretary relating to the ownership or control of an   organization or entity that is the subject of an action by the   attorney general under Section 5.254.           Sec.   5.256.     DIVESTITURE; APPOINTMENT OF RECEIVER. (a)     If   the district court finds that the real property subject to an action   brought under Section 5.254 was purchased or otherwise acquired by   an individual, organization, or entity in violation of Section   5.253, the court shall enter an order that:                 (1)  states the court's finding;                 (2)     divests the individual's, organization's or   entity's interest in the real property; and                 (3)     appoints a receiver to manage and control the real   property pending the sale or other disposition of the real   property.           (b)     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.          SECTION 4.  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 5.  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 d [Text truncated for display. 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