S.B. No. 17 is a legislative bill designed to regulate the acquisition of real property in Texas by certain foreign individuals and entities, particularly those from countries deemed threats to U.S. national security, such as China, Russia, Iran, and North Korea. The bill establishes a new subchapter in the Property Code that prohibits specific entities, including governmental bodies from designated countries and companies controlled by them, from acquiring real property. Exceptions are made for U.S. citizens, lawful residents, and certain entities owned or controlled by them. The governor is granted the authority to designate which countries or entities are subject to these prohibitions based on national security assessments.

In addition to the new provisions, the bill amends existing laws regarding the appointment of receivers and clarifies the rights of aliens concerning property. It introduces civil penalties for violations and empowers the Attorney General to investigate potential breaches, including the ability to issue civil investigative demands for documents and testimony. The bill also outlines the process for divestiture of property acquired in violation of these laws and establishes penalties for individuals who knowingly acquire property interests in violation, classifying such offenses as state jail felonies. The Attorney General can seek civil penalties against violators, with a minimum penalty of $250,000 or 50% of the market value of the property interest involved. These changes will take effect on September 1, 2025, applying only to property acquisitions occurring on or 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)
Senate Committee Report: Civil Practice and Remedies Code 64.001, Property Code 5.005 (Civil Practice and Remedies Code 64, Property Code 5)
Engrossed: Civil Practice and Remedies Code 64.001, Property Code 5.005 (Civil Practice and Remedies Code 64, Property Code 5)
House Committee Report: Civil Practice and Remedies Code 64.001, Property Code 5.005 (Civil Practice and Remedies Code 64, Property Code 5)
Enrolled: Civil Practice and Remedies Code 64.001, Property Code 5.005 (Civil Practice and Remedies Code 64, Property Code 5)