SB307 - Relating to the purchase of or acquisition of title to real property by certain aliens or foreign entities.

  89R5273 DRS-F     By: Kolkhorst, et al. S.B. No. 307       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.          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)     "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, viticulture, horticulture, or planting   seed; or                       (B)     domestic or native farm or ranch animals kept   for use or profit.                 (2)     "Designated country" means 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   each 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).                 (3)     "Governing authority," "governing person," and   "organization" have the meanings assigned by Section 1.002,   Business Organizations Code.                 (4)  "Real property" means:                       (A)  agricultural land;                       (B)  an improvement located on agricultural land;                       (C)  a mine or quarry;                       (D)  a mineral in place; or                       (E)  standing timber.           Sec.   5.252.     ORGANIZATION UNDER CONTROL OF INDIVIDUAL OR   ANOTHER ORGANIZATION. (a)   For purposes of this subchapter, an   organization is under the control of an individual or another   organization if the controlling individual or organization is   authorized to:                 (1)     direct the activities of the controlled   organization;                 (2)     make or direct others to make legal commitments on   behalf of the controlled organization; or                 (3)     hire and fire a principal decision maker of the   controlled organization.           (b)     The authority of the controlling individual or   organization under Subsection (a) may derive from:                 (1)     exercise of a voting ownership interest of the   controlled organization sufficient to elect a governing person or   governing authority of the controlled organization to exercise on   the controlling individual's or organization's behalf the authority   described by Subsection (a); or                 (2)     a financial, legal, practical, contractual, or   other arrangement that functionally enables the controlling   individual or organization to exercise the authority described by   Subsection (a).           Sec.   5.253.     EXCEPTIONS: UNITED STATES CITIZENS AND LAWFUL   PERMANENT RESIDENTS; RESIDENCE HOMESTEAD PROPERTY; LEASEHOLD.   This subchapter does not apply to:                 (1)     an individual who is a citizen or lawful permanent   resident of the United States, including an individual who is a   citizen of a foreign country;                 (2)     an organization that is owned by or under the   control of one or more individuals described by Subdivision (1);                 (3)     real property that is intended for use as an   individual's residence homestead, as defined by Section 11.13(j),   Tax Code; or                 (4)     a leasehold interest in land or improvements   constructed on a leasehold if the duration of the interest is less   than 100 years.           Sec.   5.254.     PROHIBITION ON PURCHASE OF OR ACQUISITION OF   TITLE TO REAL PROPERTY.     (a) In this section, "risk to the health,   safety, and welfare of the public" includes a likelihood that an   individual, organization, or governmental entity will engage in an   act that:                 (1)  constitutes:                       (A)  a violation of state or federal criminal law;                       (B)  corporate espionage; or                       (C)  a public nuisance; or                   (2)     causes or threatens to cause bodily injury to a   person, including the introduction of a dangerous disease or   dangerous substance into an area.           (b)     Except as provided by Section 5.253 and notwithstanding   any other law, the following may not purchase or otherwise acquire   title to real property in this state if the purchase of or   acquisition of title to the property by the individual,   organization, or governmental entity would create a risk to the   health, safety, and welfare of the public:                 (1)  a governmental entity of a designated country;                   (2)  an organization that is:                         (A)  headquartered in a designated country;                       (B)     directly or indirectly under the control of   the government of a designated country; or                       (C)     owned by or under the control of one or more   individuals who are domiciled in a designated country;                 (3)     an organization that is owned by or under the   control of an organization described by Subdivision (2); or                 (4)     an individual who is domiciled in a designated   country.           Sec.   5.255.     ATTORNEY GENERAL ENFORCEMENT. If the attorney   general has a reasonable suspicion that the purchase of or   acquisition of title to real property in this state by an   individual, organization, or governmental entity in violation of   this subchapter creates a risk to the health, safety, and welfare of   the public, as defined by Section 5.254, 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.           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   5.254, 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.     APPOINTMENT OF RECEIVER. (a) If the district   court finds that the real property subject to an action brought   under Section 5.255 was purchased or [Text truncated for display. Full text available on LegiScan.]