Bill Text: TX HB50 | 2023 | 88th Legislature 4th Special Session | Introduced

Texas House Bill 50 (Prior Session Legislation)

Introduced

Bill Title: Relating to the purchase of or acquisition of title to real property by certain aliens or foreign entities.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2023-11-07 - Filed [HB50 Detail]

Download: Texas-2023-HB50-Introduced.html



	By: Toth	H.B. No. 50



	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) "Agricultural land" means land that is located in
	this state and 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) "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).
	(4) "Governing authority," "governing person," and
	"organization" have the meanings assigned by Section 1.002,
	Business Organizations Code.
	(5) "Real property" means:
	(A) agricultural land;
	(B) an improvement located on agricultural land;
	(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; LEASEHOLD. (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) a company or other entity 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
	an individual's residence homestead, as defined by Section
	11.13(j), Tax Code.
	(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. (a) In this section, "risk to the health,
	safety, and welfare of the public" includes a likelihood that an
	individual or entity will engage in an act that:
	(1) constitutes:
	(A) a violation of state or federal criminal law;
	(B) corporate espionage; or
	(C) a public nuisance; or
	(2) causes or threatens to cause bodily injury to a
	person, including the introduction of a dangerous disease or
	dangerous substance into an area.
	(b) 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 if the purchase of or
	acquisition of title to the property by the individual or entity
	would create a risk to the health, safety, and welfare of the
	public:
	(1) a governmental entity of a designated country;
	(2) a company or other entity that is:
	(A) headquartered in a designated country;
	(B) directly or indirectly under the control of
	the government of a designated country; or
	(C) owned by or under the control of one or more
	individuals who are citizens of a designated country;
	(3) a company or other entity that is owned by or under
	the control of a company or entity described by Subdivision (2); or
	(4) an individual who is a citizen of a designated
	country.
	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
	or entity in violation of this subchapter creates a risk to the
	health, safety, and welfare of the public, as defined by Section
	5.253, 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 or entity
	as necessary to determine the ownership or control of a company or
	other 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 a company
	or other entity that is the subject of an action by the attorney
	general under Section 5.254.
	Sec. 5.256. 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 or entity in violation of Section 5.253, the court shall
	enter an order that:
	(1) states the court's finding; and
	(2) appoints a receiver to:
	(A) manage and control the real property pending
	the sale or other disposition of the real property; and
	(B) return to the individual or entity any
	proceeds of 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. 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 immediately if it receives
	a vote of two-thirds of all the members elected to each house, as
	provided by Section 39, Article III, Texas Constitution. If this
	Act does not receive the vote necessary for immediate effect, this
	Act takes effect on the 91st day after the last day of legislative
	session.