Bill > HB2389

This bill introduces significant restrictions on property ownership and government contracts for individuals and entities from China, Iran, North Korea, and Russia. The legislation modifies existing property laws to prohibit governmental entities, companies, and individuals from these four countries from purchasing or acquiring title to real property in Texas. The bill defines "control" as owning or having the power to vote 50% or more of an entity's outstanding voting interests. Importantly, the restrictions do not apply to U.S. citizens or lawful permanent residents, even if they are originally from these countries. Additionally, the bill extends these prohibitions to government contracts, preventing public entities from entering into agreements payable with public money with adverse foreign entities or citizens of the specified countries. The new regulations will take effect on September 1, 2025, and will only apply to property purchases and contracts made on or after that date. This legislation appears to be a measure aimed at limiting foreign investments and potential national security risks from specific geopolitically sensitive nations.