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, the official text

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