H.B. No. 402 amends the Civil Practice and Remedies Code and the Property Code in Texas to regulate the purchase and acquisition of real property by certain foreign individuals and entities. The bill introduces a new Subchapter H to the Property Code, which defines terms such as "agricultural land," "control," and "designated country." It establishes that aliens have the same property rights as U.S. citizens, except as specified in the new subchapter. The bill prohibits certain entities and individuals from acquiring real property in Texas if they are associated with designated countries identified as posing a national security risk.

Additionally, the bill empowers the Texas Attorney General to enforce these regulations, allowing them to take legal action if there is a reasonable suspicion that a violation poses a risk to public health, safety, or welfare. The Attorney General can also conduct discovery and request records from the Secretary of State to determine ownership or control of entities involved in potential violations. If a court finds that property was acquired in violation of the new regulations, it can order divestiture and appoint a receiver to manage the property. The changes will take effect on September 1, 2025, and will only apply to transactions occurring after that date.

Statutes affected:
Introduced: Civil Practice and Remedies Code 64.001, Property Code 5.005 (Civil Practice and Remedies Code 64, Property Code 5)