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HB 402 – 2025 – Relating to the purchase of or acquisition of title to real property by certain aliens or foreign entities.

This bill, titled “AN ACT relating to the purchase of or acquisition of title to real property by certain aliens or foreign entities,” aims to regulate the ownership of real property in Texas by foreign individuals or entities from countries deemed to pose a risk to U.S. national security. Here’s a summary of its key provisions:

Key Provisions:
1. Prohibition on Property Acquisition:
– The bill prohibits individuals or entities from “designated countries” (countries identified as national security risks by the U.S. Director of National Intelligence) from purchasing or acquiring title to certain types of real property in Texas.
– This includes:
– Agricultural land, mines, quarries, minerals, and standing timber.
– Entities headquartered in or controlled by governments or citizens of designated countries.
– Exceptions are made for:
– U.S. citizens and lawful permanent residents.
– Real property intended for use as a **residence homestead**.
– Leasehold interests in land or improvements.

2. Enforcement by the Attorney General:
– The Texas Attorney General is authorized to enforce the law if there is a reasonable suspicion that a violation poses a risk to public health, safety, or welfare.
– The Attorney General can bring legal action in district court and conduct discovery to investigate ownership or control of entities involved in violations.

3. Divestiture and Receivership:
– If a court finds that real property was acquired in violation of the law, it must:
– Divest the individual or entity of their interest in the property.
– Appoint a receiver to manage and control the property pending its sale or disposition.

4. Amendments to Existing Law:
– The bill amends the Civil Practice and Remedies Code to allow courts to appoint receivers in cases involving violations of this law.
– It also amends the Property Code to clarify that aliens generally have the same property rights as U.S. citizens, except as restricted by this new subchapter.

5. Effective Date:
– The law applies to property purchases or acquisitions occurring **on or after September 1, 2025**.
– Purchases made before this date are governed by prior law.

Purpose:
The bill seeks to protect Texas real property, particularly agricultural land and resources, from being owned or controlled by foreign entities or individuals from countries identified as national security threats. It emphasizes state control over critical assets and ensures that such properties remain in the hands of entities aligned with U.S. interests.

Summary:
This legislation restricts foreign ownership of Texas real property by individuals or entities from designated countries, with enforcement mechanisms including divestiture and receivership. It balances property rights with national security concerns, while exempting U.S. citizens, lawful residents, and homestead properties. The law takes effect on **September 1, 2025**.