H.B. No. 2536 proposes amendments to the Texas Civil Practice and Remedies Code and the Property Code, specifically addressing the purchase and acquisition of real property by certain foreign individuals and entities. The bill introduces a new subchapter, Subchapter H, which outlines definitions and establishes prohibitions on property transactions involving individuals or entities from designated countries, including China, Iran, North Korea, and Russia. It specifies that aliens generally have the same property rights as U.S. citizens, but exceptions apply for those from designated countries. The bill also allows the governor to designate additional countries subject to these restrictions and mandates the attorney general to investigate potential violations.

The legislation creates a criminal offense for individuals domiciled in designated countries who knowingly acquire real property in Texas, classifying such an offense as a state jail felony. It also imposes significant fines on companies found in violation of the new regulations, with penalties set at either $250,000 or 50% of the property's market value. The bill includes provisions for the appointment of receivers to manage properties acquired in violation of the law and outlines the distribution of sale proceeds from such properties. 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 (Property Code 5, Civil Practice and Remedies Code 64)