Bill Text: TX HB2825 | 2021-2022 | 87th Legislature | Comm Sub
Bill Title: Relating to reporting requirements for certain loan and title insurance transactions involving foreign companies and real property located near military bases.
Spectrum: Slight Partisan Bill (Republican 2-1)
Status: (Introduced - Dead) 2021-05-12 - Placed on General State Calendar [HB2825 Detail]
Download: Texas-2021-HB2825-Comm_Sub.html
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 |
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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. |