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HB 243 – 2025 – Relating to the authority of the attorney general to acquire by eminent domain certain real property owned by aliens or foreign entities

Summary of the Bill:

This bill, titled “An Act relating to the authority of the attorney general to acquire by eminent domain certain real property owned by aliens or foreign entities,” amends the Texas Property Code to grant the Texas Attorney General the authority to use eminent domain to acquire real property owned by aliens, foreign businesses, or foreign governments if the property is being used in a manner that violates state or federal law or poses a risk to the state’s critical infrastructure. Here are the key provisions:

Key Provisions:

1. New Chapter 21A: Acquisition by Eminent Domain of Certain Foreign-Owned Real Property:
– Definitions (Section 21A.001):
– “Alien”: A citizen of a country other than the United States.
– “Critical infrastructure”: Includes 16 categories such as energy, transportation, communications, health care, water systems, and more.
– “Foreign”: Refers to entities created or organized under the laws of a country other than the United States.

– Applicability (Section 21A.002):
– Applies to real property in Texas owned by aliens, foreign businesses, foreign governments, or their agents, trustees, or fiduciaries.

– Eminent Domain Authority (Section 21A.003):
– Allows the Attorney General to file a court action to obtain an order authorizing eminent domain proceedings if:
1. The property is being used in violation of state or federal law.
2. The property’s use creates a risk to Texas’s critical infrastructure.
– The action must be filed in a district court in the county where the property is located.
– If the court finds the Attorney General’s claims valid, it must issue an order authorizing eminent domain proceedings.
– The Attorney General may then initiate eminent domain proceedings under Chapter 21, Property Code, with certain exemptions (e.g., Chapter 2206, Government Code, and Subchapter E, Chapter 21, Property Code, do not apply).

– State Management of Acquired Property (Section 21A.004):
– Real property acquired through eminent domain under this chapter will be owned by the State of Texas and managed by the General Land Office.

2. Rulemaking (Section 2):
– Requires the Attorney General to adopt rules for implementing Chapter 21A as soon as practicable after the bill’s effective date.

3. Effective Date (Section 3):
– The bill takes effect on **September 1, 2025**.

Impact of the Bill:
– Enhanced State Authority: Grants the Texas Attorney General significant power to seize foreign-owned real property if it is deemed a threat to critical infrastructure or violates laws.
– Focus on National Security: Targets foreign ownership of property that could pose risks to essential systems like energy, transportation, and water.
– Streamlined Eminent Domain Process:** Exempts these proceedings from certain legal requirements, making it easier for the state to acquire property under these circumstances.
– State Ownership: Ensures that any acquired property is managed by the General Land Office, aligning with state interests.

This bill reflects growing concerns about foreign ownership of real property, particularly in sectors critical to national and state security. It aims to protect Texas’s infrastructure and enforce compliance with state and federal laws.