87R12870 TYPED     By: Bonnen H.B. No. 2825       A BILL TO BE ENTITLED   AN ACT   relating to certain transactions involving real property located   near military bases.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Chapter 341, Finance Code, is amended by adding   Subchapter H to read as follows:   SUBCHAPTER H. DUTIES REGARDING CERTAIN REAL ESTATE LOANSNEAR   MILITARY BASES          Sec. 341.701.  DEFINITIONS. In this subchapter:                (1)  "Commission" means the Texas Military   Preparedness Commission.                (2)  "Financial institution" means a bank, savings   association, or credit union.          Sec. 341.702.  APPLICABILITY. This subchapter applies only   to a loan made by a financial institution for the purchase,   development, or renovation of real property that is not zoned or   intended to be used for residential use only.          Sec. 341.703.  NOTICE AND REPORTING BY FINANCIAL   INSTITUTIONS. (a) Prior to approving an application for a loan for   real property located within 25 nautical miles of the boundaries of   a military base located in this state, a financial institution   shall determine if the applicant is a scrutinized company under   Section 2270.0001(9), Government Code.           (b)  If the financial institution determines that the   applicant is a scrutinized company and the loan would be for the   purchase or lease of real property, the financial institution shall   promptly provide notice of that fact to the sellor or lessor of the   real property.          (c)  Not later than December 31 of each year, a financial   institution shall submit a report to the commission that identifies   each loan made to a scrutinized company for real property located   within 25 nautical miles of the boundaries of a military base   located in this state.          (d)  In making a determination under Subsection (a), a   financial institution may rely on the list maintained by the   comptroller under Section 2270.0201, Government Code.          (e)  This section does not prohibit a financial institution   from approving an application for a loan submitted by or connected   to a scrutinized company.          SECTION 2.  Chapter 2704, Insurance Code, is amended by   adding Subchapter D to read as follows:   SUBCHAPTER D. DUTIES REGARDING TITLE INSURANCE COVERING CERTAIN   AREAS NEAR MILITARY BASES          Sec. 2704.151.  DEFINITIONS. In this subchapter,   "commission" means the Texas Military Preparedness Commission.          Sec. 2704.152.  APPLICABILITY. This subchapter applies only   to a title insurance policy or contract issued by a title insurance   company for real property that is not zoned or intended to be used   for residential use only.          Sec. 2704.153.  NOTICE AND REPORTING BY TITLE INSURANCE   COMPANIES. (a) Prior to approving an application for a title   insurance policy or contract in connection with real property   located within 25 nautical miles of the boundaries of a military   base located in this state, a title insurance company shall   determine if the applicant is a scrutinized company under Section   2270.0001(9), Government Code.           (b)  If the title insurance company determines that the   applicant is a scrutinized company and the policy or contract would   be issued in connection with the purchase or lease of real property,   the title insurance company shall promptly provide notice of that   fact to the sellor or lessor of the real property.          (c)  Not later than December 31 of each year, a title   insurance company shall submit a report to the commission that   identifies each title insurance policy or contract entered into   with a scrutinized company for real property located within 25   nautical miles of the boundaries of a military base located in this   state.          (d)  In making a determination under Subsection (a), a title   insurance company may rely on the list maintained by the   comptroller under Section 2270.0201, Government Code.          (e)  This section does not prohibit a title insurance company   from approving an application for a title insurance policy or   contract submitted by or connected to a scrutinized company.          SECTION 3.  Subchapter C, Chapter 436, Government Code, is   amended by adding Section 436.1031 to read as follows:          Sec. 436.1031.  INFORMATION REGARDING CERTAIN TRANSACTIONS   INVOLVING REAL PROPERTY NEAR MILITARY BASES. (a) The commission   shall include in its biennial report in Section 436.103 a list of   the financial institutions and title insurance companies that have,   during the two preceding years, reported a transaction to the   commission under Section 341.703(c), Finance Code, or Section   2704.153(c), Insurance Code, and the scrutinized company involved   in each transaction.          (b)  Except as provided in Subsection (a), a report made to   the commission by a financial institution or a title insurance   company under Section 341.703(c), Finance Code, or Section   2704.153(c), Insurance Code, is confidential and not subject to   disclosure under Chapter 552.          SECTION 4.  The duties imposed under Subchapter H, Chapter   341, Finance Code, as added by this Act and Subchapter D, Chapter   2704, Insurance Code, as added by this Act apply only to an   application for a loan or title insurance policy or contract   received by a bank, savings association, credit union, or title   insurance company on or after the effective date of this Act.          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 September 1, 2021.