Bill Text: TX HB4006 | 2023-2024 | 88th Legislature | Introduced

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

Spectrum: Partisan Bill (Republican 3-0)

Status: (Introduced - Dead) 2023-04-20 - Left pending in committee [HB4006 Detail]

Download: Texas-2023-HB4006-Introduced.html

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By: Spiller H.B. No. 4006

A BILL TO BE ENTITLED
AN ACT
relating to the purchase of or acquisition of title to real property
by certain foreign entities.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. 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 2. 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 ENTITIES
Sec. 5.251. 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 China, Iran, North Korea,
or Russia;
(2) a company or other entity that is:
(A) headquartered in China, Iran, North Korea, or
Russia;
(B) directly or indirectly held or controlled by
the government of China, Iran, North Korea, or Russia; or
(C) owned by or the majority of stock or other
ownership interest of which is held or controlled by entities who
are citizens of China, Iran, North Korea, or Russia;
(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).
Sec. 5.252. ATTORNEY GENERAL ENFORCEMENT. (a) If the
attorney general has reason to believe that an entity has purchased
or otherwise acquired title to real property in violation of
Section 5.251, 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.
(b) The attorney general shall record notice of an action
brought under Subsection (a) in the real property records of each
county where any part of the real property subject to the action is
located.
(c) If the district court finds that the real property
subject to an action brought under Subsection (a) was purchased or
otherwise acquired by an entity in violation of Section 5.251, the
court shall enter an order stating that finding and ordering the
entity to divest all interest in the property. The attorney general
shall record a copy of the order in the real property records of
each county where any part of the real property subject to the order
is located.
Sec. 5.253. DIVESTMENT; FORCED SALE. (a) Not later than
the first anniversary of the date the district court enters an order
under Section 5.252(c), an entity found by the district court to
have purchased or acquired title to real property in violation of
this subchapter shall divest all interest in the real property.
(b) If an entity fails to divest an interest in real
property as required by an order issued under Subsection (a), the
district court shall enter an order that divests the entity's
interest in the real property and directs the sheriff or constable
for each county where any part of the real property is located to
seize and conduct a public sale of the property in the manner that
similar property is sold under execution.
Sec. 5.254. DISTRIBUTION OF SALE PROCEEDS. (a) An officer
conducting a public sale under Section 5.253(b) is entitled to
retain from the proceeds of the sale an amount equal to the
reasonable expenses incurred by the officer.
(b) The remaining proceeds of a sale conducted under Section
5.253(b) shall be remitted to the comptroller for deposit in the
general revenue fund.
SECTION 3. 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 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 September 1, 2023.