Bill > HB2536

This bill introduces significant restrictions on real property purchases by certain foreign individuals and entities, specifically targeting governmental entities, companies, and individuals from designated countries (initially China, Iran, North Korea, and Russia). The legislation creates a new legal framework that prohibits these specified foreign actors from purchasing or acquiring title to real property in Texas, with some important exceptions such as U.S. citizens, lawful permanent residents, and individuals from foreign countries not domiciled in designated countries. Violations of these restrictions can result in serious legal consequences, including a state jail felony charge for individuals and substantial fines for companies, which could be up to $250,000 or 50 percent of the property's market value. The attorney general is empowered to investigate potential violations, bring enforcement actions, and refer matters to law enforcement. If a court finds a violation has occurred, it can divest the foreign entity or individual of their property interest and appoint a receiver to manage the property's sale, with proceeds first satisfying existing liens and then being deposited into the state's general revenue fund. The governor is also granted the authority to designate additional countries beyond the initial four as subject to these restrictions, after consulting with public safety and homeland security officials. The law is set to take effect on September 1, 2025, and will only apply to property purchases made on or after that date.

Military Affairs and Security

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB2536