Bill Text: TX SB17 | 2025-2026 | 89th Legislature | Enrolled

---

Bill Title: Relating to the purchase or acquisition of an interest in real property by certain aliens or foreign entities; creating a criminal offense; providing a civil penalty.

Sponsorship: Broadly Bipartisan Bill

Status: (Passed) 2025-06-20 - Effective on 9/1/25 [SB17 Detail]

Download: Texas-2025-SB17-Enrolled.html

---

S.B. No. 17

AN ACT
relating to the purchase or acquisition of an interest in real
property by certain aliens or foreign entities; creating a criminal
offense; providing a civil penalty.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. (a) The legislature finds the following as
informed by the determination of the United States Director of
National Intelligence in the 2025 Annual Threat Assessment of the
U.S. Intelligence Community issued pursuant to Section 108B,
National Security Act of 1947 (50 U.S.C. Section 3043b):
(1) with respect to China:
(A) China's dominance in the mining and
processing of critical materials is a particular threat, providing
it with the ability to restrict quantities and affect global
prices. Beijing has shown a willingness to restrict global access
to its mineral resources;
(B) China is using an aggressive
whole-of-government approach, combined with state direction of the
private sector, to become a global science and technology
superpower. It wishes to surpass the United States and achieve
further economic, political, and military gain;
(C) China is accelerating its progress by using
illicit means;
(D) China has stolen hundreds of gigabytes of
intellectual property from companies across the world, including
from the United States;
(E) China is heavily investing in collecting
health and genetic data;
(F) China poses health risks to the world;
(G) Beijing will continue to expand its coercive,
subversive, and malignant influence activities to weaken the United
States. It seeks to suppress critical views of China within the
United States; and
(H) China has increased its capabilities to
conduct covert influence operations and disseminate
disinformation;
(2) with respect to Russia:
(A) Russia's advanced cyber capabilities, its
repeated success compromising sensitive targets for intelligence
collection, and its past attempts to access United States critical
infrastructure make it a persistent counterintelligence and cyber
attack threat; and
(B) Russia intentionally stokes political
discord in the West, including by amplifying preferred Russian
narratives. Russia discreetly engages Americans in these processes
while hiding Russia's involvement;
(3) with respect to Iran:
(A) Iran's growing expertise and willingness to
conduct aggressive cyber operations make it a major threat to the
security of the United States. Guidance from Iranian leaders has
incentivized cyber actors to become more aggressive in developing
capabilities to conduct cyber attacks;
(B) Iran remains committed to its long-standing
efforts to develop surrogate networks inside the United States; and
(C) Iran has previously tried to conduct lethal
operations in the United States; and
(4) with respect to North Korea:
(A) North Korea may expand its ongoing cyber
espionage operations;
(B) North Korea continues to pursue military
capabilities that threaten the United States and enable North Korea
to undermine the United States;
(C) cooperation among China, Russia, Iran, and
North Korea has grown rapidly in recent years, reinforcing threats
from each. Such cooperation has strengthened their abilities to
harm the United States; and
(D) North Korea will continue to defy
international sanctions and engage in illicit activities,
including stealing cryptocurrency, sending labor overseas, and
trading UN-proscribed goods to resource and fund North Korea's
priorities.
(b) The legislature finds it necessary to exercise the
police power of this state as provided in this legislation.
SECTION 2. 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 3. 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 4. Chapter 5, Property Code, is amended by adding
Subchapter H to read as follows:
SUBCHAPTER H. PURCHASE OR ACQUISITION OF REAL PROPERTY BY CERTAIN
FOREIGN INDIVIDUALS OR ENTITIES
Sec. 5.251. DEFINITIONS. In this subchapter:
(1) "Agricultural land" means land that is located in
this state and that is suitable for:
(A) use in production of plants and fruits grown
for human or animal consumption, or plants grown for the production
of fibers, floriculture, silviculture, viticulture, horticulture,
or planting seed; or
(B) domestic or native farm or ranch animals kept
for use or profit.
(2) "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.
(3) "Designated country" means:
(A) a country identified by the United States
Director of National Intelligence as a country that poses a risk to
the national security of the United States in at least one of the
three most recent Annual Threat Assessments of the U.S.
Intelligence Community issued pursuant to Section 108B, National
Security Act of 1947 (50 U.S.C. Section 3043b); or
(B) a country designated by the governor under
Section 5.254.
(4) "Domiciled" means having established a place as an
individual's true, fixed, and permanent home and principal
residence to which the individual intends to return whenever
absent.
(5) "Organization" has the meaning assigned by Section
1.002, Business Organizations Code.
(6) "Real property" includes:
(A) agricultural land;
(B) an improvement located on agricultural land;
(C) commercial property;
(D) industrial property;
(E) groundwater;
(F) residential property;
(G) a mine or quarry;
(H) a mineral in place;
(I) standing timber; or
(J) water rights.
(7) "Transnational criminal organization" means two
or more persons:
(A) who are citizens of or domiciled in a
designated country;
(B) with an identifiable leadership who operate
internationally; and
(C) who continuously or regularly associate to
engage in corruption, violence, or the commission of other criminal
activities.
Sec. 5.252. EXCEPTIONS: UNITED STATES CITIZENS AND LAWFUL
RESIDENTS; CERTAIN ENTITIES OWNED OR CONTROLLED BY UNITED STATES
CITIZENS OR LAWFUL RESIDENTS; LEASEHOLD. This subchapter does not
apply to:
(1) an individual who is a citizen or lawful permanent
resident of the United States;
(2) a company or organization 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 on a leasehold if the duration of the interest is less
than one year.
Sec. 5.253. PROHIBITION ON PURCHASE OR ACQUISITION OF REAL
PROPERTY. Notwithstanding any other law, the following may not
purchase or otherwise acquire an interest in real property in this
state:
(1) a governmental entity of a designated country;
(2) a company or organization that is:
(A) headquartered in a designated country;
(B) directly or indirectly held or controlled by
the government of a designated country;
(C) owned by or the majority of stock or other
ownership interest of which is held or controlled by individuals
described by Subdivision (4); or
(D) designated by the governor under Section
5.254;
(3) a company or organization that is owned by or the
majority of stock or other ownership interest of which is held or
controlled by a company or organization described by Subdivision
(2); or
(4) an individual who:
(A) is domiciled in a designated country, except
that an individual who is lawfully present and residing in the
United States at the time the individual purchases or acquires the
interest may purchase or acquire an interest in a residential
property that is intended for use as an individual's residence
homestead, as defined by Section 11.13(j), Tax Code;
(B) is a citizen of a designated country who is
domiciled outside of the United States in a country:
(i) other than a designated country; and
(ii) for which the individual has not
completed the naturalization process for becoming a citizen of that
country;
(C) is a citizen of a designated country who is
unlawfully present in the United States;
(D) is:
(i) a citizen of a country other than the
United States; and
(ii) acting as an agent or on behalf of a
designated country; or
(E) is a member of the ruling political party or
any subdivision of the ruling political party in a designated
country.
Sec. 5.254. DESIGNATION OF COUNTRY OR ENTITY AS SUBJECT TO
PROHIBITION ON PURCHASE OR ACQUISITION OF REAL PROPERTY. (a) The
governor, after consultation with the public safety director of the
Department of Public Safety, may, for purposes of Section 5.253:
(1) determine whether the purchase or acquisition of
an interest in real property in this state by an individual or
entity poses a risk to the national security of the public; and
(2) based on a determination made under Subdivision
(1):
(A) designate a country or a transnational
criminal organization or other entity as subject to this
subchapter; or
(B) remove a designation made under Paragraph
(A).
(b) The governor shall consult the Homeland Security
Council established under Subchapter B, Chapter 421, Government
Code, for purposes of making or removing a designation under this
section.
(c) The designation or removal of the designation of a
country or entity under this section applies only to the purchase or
acquisition of an interest in real property that occurs on or after
the date the governor designates or removes the designation of the
country or entity.
Sec. 5.255. INVESTIGATION AND ENFORCEMENT BY ATTORNEY
GENERAL; LAW ENFORCEMENT REFERRAL. (a) The attorney general shall
establish procedures to examine a purchase or acquisition of an
interest in 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 purchase or acquisition of an interest in real
property is warranted under this section, the attorney general
shall investigate the purchase or acquisition of an interest in
real property and determine whether a violation of this subchapter
occurred.
(c) If the attorney general determines that a violation of
this subchapter occurred, the attorney general:
(1) may bring an in rem action against real property 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
(2) may refer the matter to the appropriate local,
state, or federal law enforcement agency.
(d) The attorney general shall record notice of an action
brought under Subsection (c) in the real property records of each
county where any part of the real property subject to the action is
located.
(e) Except for an acquisition of a leasehold interest, a
purchase or acquisition of an interest in real property in
violation of Section 5.253 is not void because of the violation, and
the validity or enforceability by any person of a purchase contract
for or the conveyance of an interest in the real property is not
otherwise affected by the violation.
Sec. 5.256. ATTORNEY GENERAL INVESTIGATION AND DISCOVERY;
SECRETARY OF STATE INTERROGATORIES AND RECORDS. (a) The attorney
general may conduct discovery to investigate a potential action
under Section 5.255 or in an action brought under Section 5.255,
including by:
(1) petitioning for an order authorizing the taking of
a deposition under Rule 202, Texas Rules of Civil Procedure; or
(2) if the attorney general has reason to believe that
a person may be in possession, custody, or control of any
documentary material or other evidence or may have any information
relevant to an investigation of a suspected violation of Section
5.253, issuing in writing and serving on the person a civil
investigative demand requiring the person to:
(A) produce any of the documentary material for
inspection and copying;
(B) answer in writing any written
interrogatories;
(C) give oral testimony; or
(D) provide any combination of civil
investigative demands under Paragraph (A), (B), or (C).
(b) The secretary of state shall on request by the attorney
general:
(1) serve interrogatories on an individual or entity
as necessary to determine the ownership or control of an
organization that is the subject of an action by the attorney
general under Section 5.255; and
(2) provide to the attorney general all records held
by the secretary relating to the ownership or control of an
organization that is the subject of an action by the attorney
general under Section 5.255.
Sec. 5.257. 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 an interest in the real property was
otherwise acquired in violation of Section 5.253, the court shall:
(1) enter an order that:
(A) states the court's finding;
(B) orders the divestment of the individual's or
entity's interest in the real property; and
(C) appoints a receiver to:
(i) divest the individual's or entity's
interest in the real property through sale, termination of a
leasehold, or other disposition of the interest; and
(ii) manage and control the real property
pending the sale or other disposition of the interest in the real
property; and
(2) refer the matter to the appropriate prosecuting
attorney for criminal prosecution of any appropriate criminal
offense in connection with the transaction.
(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 an
interest in 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 the reasonable costs incurred by the state
in enforcing this subchapter. The remaining proceeds shall be
remitted to the individual or entity that purchased or otherwise
acquired the interest in violation of this subchapter.
Sec. 5.258. OFFENSE; PENALTY. (a) A person commits an
offense if the person:
(1) is an individual described by Section 5.253(4);
and
(2) intentionally or knowingly purchases or otherwise
acquires an interest in real property in this state in violation of
this subchapter.
(b) An offense under Subsection (a) is a state jail felony.
Sec. 5.259. CIVIL PENALTY. (a) The attorney general may
bring an action in the name of the state against a company or entity
that violates this subchapter.
(b) A company or entity that a court determines in an action
brought under this section to have violated this subchapter is
liable to the state for a civil penalty equal to the greater of:
(1) $250,000; or
(2) 50 percent of the market value of the interest in
real property that is the subject of the violation.
SECTION 5. 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 6. The changes in law made by this Act apply only to
the purchase or acquisition of an interest in real property on or
after the effective date of this Act. The purchase or acquisition
of an interest in 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 7. It is the intent of the legislature that every
provision, section, subsection, sentence, clause, phrase, or word
in this Act, and every application of the provisions in this Act to
each person or entity, is severable from each other. If any
application of any provision in this Act to any person, group of
persons, or circumstances is found by a court to be invalid for any
reason, the remaining applications of that provision to all other
persons and circumstances shall be severed and may not be affected.
If a court finds invalid, for any reason, a prohibition under this
Act on the purchase or acquisition of an interest in real property
in this state by an individual described by Section 5.253(4),
Property Code, as added by this Act, the court shall,
notwithstanding the finding, construe this Act to prohibit the
purchase or acquisition of an interest in real property in this
state by an individual who is a citizen of a country other than the
United States and is domiciled in a designated country described by
Section 5.251(3), Property Code, as added by this Act.
SECTION 8. This Act takes effect September 1, 2025.
______________________________ ______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 17 passed the Senate on
March 19, 2025, by the following vote: Yeas 24, Nays 7;
May 14, 2025, Senate refused to concur in House amendments and
requested appointment of Conference Committee; May 19, 2025, House
granted request of the Senate; May 30, 2025, Senate adopted
Conference Committee Report by the following vote: Yeas 23,
Nays 8.
______________________________
Secretary of the Senate
I hereby certify that S.B. No. 17 passed the House, with
amendments, on May 9, 2025, by the following vote: Yeas 86,
Nays 59, one present not voting; May 19, 2025, House granted
request of the Senate for appointment of Conference Committee;
May 29, 2025, House adopted Conference Committee Report by the
following vote: Yeas 85, Nays 57, one present not voting.
______________________________
Chief Clerk of the House
Approved:
______________________________
Date
______________________________
Governor