89R8449 DRS-D     By: Leach H.B. No. 2536       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; creating a criminal offense.          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)  "Company" means a sole proprietorship,   organization, association, corporation, partnership, joint   venture, limited partnership, limited liability partnership, or   limited liability company, including a wholly owned subsidiary,   majority-owned subsidiary, parent company, or affiliate of those   entities or business associations, that exists to make a profit.                (2)  "Designated country" means:                      (A)  China, Iran, North Korea, or Russia; or                      (B)  a country designated by the governor under   Section 5.254.          Sec. 5.252.  EXCEPTIONS: UNITED STATES CITIZENS AND CERTAIN   LAWFUL RESIDENTS; LEASEHOLD PROPERTY. This subchapter does not   apply to:                (1)  an individual who is:                      (A)  a citizen or lawful permanent resident of the   United States; or                      (B)  a citizen of a foreign country who is not   domiciled in a designated country;                 (2)  a company or other entity that is owned by or under   the control of:                      (A)  one or more individuals described by   Subdivision (1); and                       (B)  no individual described by Section 5.253; or                (3)  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. 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)  a company or other entity that is:                      (A)  headquartered in a designated country;                      (B)  directly or indirectly held or controlled by   the government of a designated country; or                      (C)  owned by or the majority of stock or other   ownership interest of which is held or controlled by individuals   described by Subdivision (4);                (3)  a company or other entity that is owned by or the   majority of stock or other ownership interest of which is held or   controlled by a company or entity described by Subdivision (2); or                (4)  an individual who is domiciled in a designated   country.          Sec. 5.254.  DESIGNATION OF COUNTRY AS SUBJECT TO   PROHIBITION ON PURCHASE OF OR ACQUISITION OF TITLE TO REAL   PROPERTY.  (a)  The governor, after consultation with the public   safety director of the Department of Public Safety, may designate a   country of which a governmental entity, company or other entity, or   citizen shall be subject to this subchapter.          (b)  The governor shall consult the Homeland Security   Council established under Subchapter B, Chapter 421, Government   Code, for purposes of making a designation under this section.          Sec. 5.255.  INVESTIGATION AND ENFORCEMENT BY ATTORNEY   GENERAL; LAW ENFORCEMENT REFERRAL.  (a)  The attorney general shall   establish procedures to examine a transfer of real property and   determine whether an investigation of a possible violation of this   subchapter is warranted.          (b)  If the attorney general determines that an   investigation of a transfer of real property is warranted under   this section, the attorney general:                (1)  shall investigate the transfer of real property   and determine whether a violation of this subchapter occurred;                (2)  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; and                (3)  may refer the matter to the appropriate local,   state, or federal law enforcement agency.          Sec. 5.256.  DIVESTITURE; APPOINTMENT OF RECEIVER;   DISTRIBUTION OF SALE PROCEEDS. (a) If the district court finds   that the real property subject to an action brought under Section   5.255 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;                (2)  divests the individual'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.          (c)  Proceeds from the sale or other disposition of real   property under an order described by Subsection (a) shall be   applied first to satisfy any existing liens on the property and then   to pay a fine assessed under Section 5.257(c). The remaining   proceeds shall be remitted to the comptroller for deposit in the   general revenue fund.          Sec. 5.257.  OFFENSE; PENALTY.  (a)  A person commits an   offense if the person:                (1)  is an individual domiciled in a designated   country; and                (2)  intentionally or knowingly purchases or otherwise   acquires title to real property in this state.          (b)  An offense under Subsection (a) is a state jail felony.          (c)  A company or entity that the attorney general determines   under Section 5.255(b) to have violated this subchapter shall pay   to this state a fine equal to the greater of:                (1)  $250,000; or                (2)  50 percent of the market value of the real property   that is the subject of the violation.          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 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 6.  This Act takes effect September 1, 2025.