87R12934 SRA-F     By: Bonnen, Morales of Maverick, Cyrier H.B. No. 2825     Substitute the following for H.B. No. 2825:     By:  Buckley C.S.H.B. No. 2825       A BILL TO BE ENTITLED   AN ACT   relating to reporting requirements for certain loan and title   insurance transactions involving foreign companies and real   property located near military bases.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Subtitle Z, Title 3, Finance Code, is amended by   adding Chapter 282 to read as follows:   CHAPTER 282. CERTAIN LOANS FOR REAL PROPERTY NEAR MILITARY BASES          Sec. 282.001.  DEFINITIONS. In this chapter:                (1)  "Commission" means the Texas Military   Preparedness Commission.                (2)  "Company" and "scrutinized company" have the   meanings assigned by Section 2270.0001, Government Code.                (3)  "Financial institution" means:                      (A)  a bank as defined for any purpose by Section   201.002(a)(4), whether chartered under the laws of this state,   another state, the United States, or another country, including a   state savings bank;                      (B)  a savings and loan association chartered   under Chapter 62 or similar laws of another state;                      (C)  a federal savings and loan association,   federal savings bank, or federal credit union; or                      (D)  a credit union chartered under Chapter 122 or   similar laws of another state.                (4)  "Reportable company" means a company described by   Section 282.003(a).          Sec. 282.002.  APPLICABILITY. This chapter applies only to   a loan made by a financial institution for the purchase, lease,   development, or renovation of real property that:                (1)  is located within 25 nautical miles of the   boundaries of a military base located in this state; and                (2)  is not zoned or intended to be used for residential   use only.          Sec. 282.003.  NOTICE AND REPORTING OF LOAN TRANSACTIONS   INVOLVING CERTAIN FOREIGN COMPANIES. (a) Before approving a loan   application to which this chapter applies, a financial institution   shall determine if the company applying for a loan is:                (1)  a scrutinized company;                 (2)  owned by or the majority of stock or other   ownership interest of the company is held or controlled by:                      (A)  individuals who are citizens of China, Iran,   North Korea, or Russia; or                      (B)  a company or other entity, including a   governmental entity, that is owned or controlled by citizens of or   is directly controlled by the government of China, Iran, North   Korea, or Russia; or                (3)  headquartered in China, Iran, North Korea, or   Russia.          (b)  Subsection (a) applies regardless of whether:                (1)  the reportable company's or its parent company's   securities are publicly traded; or                (2)  the reportable company or its parent company is   listed on a public stock exchange as a Chinese, Iranian, North   Korean, or Russian company.           (c)  In making a determination if a loan applicant is a   scrutinized company under Subsection (a), a financial institution   may rely on the list maintained by the comptroller under Section   2270.0201, Government Code.          (d)  If a financial institution determines that the   applicant is a reportable company, the financial institution shall   promptly notify the seller or lessor of the real property of that   fact.          (e)  Not later than December 31 of each year, each financial   institution shall submit a report to the commission that identifies   each loan to which this chapter applies that is made to a reportable   company.          (f)  This section does not prohibit a financial institution   from approving an application for a loan submitted by a reportable   company.          SECTION 2.  Subchapter C, Chapter 436, Government Code, is   amended by adding Section 436.1031 to read as follows:          Sec. 436.1031.  TRANSACTION INFORMATION INVOLVING REAL   PROPERTY NEAR MILITARY BASES. (a) The commission shall include in   the biennial report required under Section 436.103:                (1)  a list of the financial institutions and title   insurance companies that have, during each biennium, reported a   transaction to the commission under Section 282.003, Finance Code,   or Section 2704.153, Insurance Code; and                 (2)  the name of the reportable company involved in   each transaction.          (b)  Information under this section is confidential and not   subject to disclosure under Chapter 552.          SECTION 3.  Chapter 2704, Insurance Code, is amended by   adding Subchapter D to read as follows:   SUBCHAPTER D. TITLE INSURANCE FOR REAL PROPERTY NEAR MILITARY BASES          Sec. 2704.151.  DEFINITIONS. In this subchapter:                (1)  "Commission" means the Texas Military   Preparedness Commission.                (2)  "Company" and "scrutinized company" have the   meanings assigned by Section 2270.0001, Government Code.                (3)  "Reportable company" means a company described by   Section 2704.153(a).          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:                (1)  is located within 25 nautical miles of the   boundaries of a military base located in this state; and                (2)  is not zoned or intended to be used for residential   use only.          Sec. 2704.153.  NOTICE AND REPORTING OF POLICY AND CONTRACTS   INVOLVING CERTAIN FOREIGN COMPANIES. (a) Before approving the   policy or contract application to which this subchapter applies, a   title insurance company shall determine if the applicant for a   title insurance policy or contract is:                (1)  a scrutinized company;                 (2)  owned by or the majority of stock or other   ownership interest of the company is held or controlled by:                      (A)  individuals who are citizens of China, Iran,   North Korea, or Russia; or                      (B)  a company or other entity, including a   governmental entity, that is owned or controlled by citizens of or   is directly controlled by the government of China, Iran, North   Korea, or Russia; or                (3)  headquartered in China, Iran, North Korea, or   Russia.          (b)  Subsection (a) applies regardless of whether:                (1)  the reportable company's or its parent company's   securities are publicly traded; or                (2)  the reportable company or its parent company is   listed on a public stock exchange as a Chinese, Iranian, North   Korean, or Russian company.           (c)  In making a determination if a policy or contract   applicant is a scrutinized company under Subsection (a), a title   insurance company may rely on the list maintained by the   comptroller under Section 2270.0201, Government Code.          (d)  If a title insurance company determines that the policy   or contract applicant is a reportable company, the title insurance   company shall promptly notify the seller or lessor of the real   property of that fact.          (e)  Not later than December 31 of each year, each title   insurance company shall submit a report to the commission that   identifies each title insurance policy or contract to which this   subchapter applies that is made to a reportable company.           (f)  This section does not prohibit a title insurance company   from approving an application for a title insurance policy or   contract submitted by a reportable company.          SECTION 4.  Chapter 282, Finance Code, 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   submitted on or after the effective date of this Act.          SECTION 5.  This Act takes effect September 1, 2021.