HB 2389

relating to prohibiting the purchase of or acquisition of title to
real property by and contracts or other agreements with certain
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  Section 5.005, Property Code, is amended to read
Sec. 5.005.  ALIENS.  Except as provided by Subchapter H, an
[An] alien has the same real and personal property rights as a
SECTION 2.  Chapter 5, Property Code, is amended by adding
Subchapter H to read as follows:
SUBCHAPTER H. PURCHASE OF OR ACQUISITION OF TITLE TO REAL PROPERTY
BY CERTAIN FOREIGN INDIVIDUALS OR ENTITIES
Sec. 5.251.  DEFINITION.  In this subchapter, "control"
means ownership of, or the power to directly or indirectly vote, 50
percent or more of the outstanding voting interests of a company or
other entity, and includes ownership by an individual through one
Sec. 5.252.  EXCEPTION: UNITED STATES CITIZENS AND LAWFUL
PERMANENT RESIDENTS.  This subchapter does not apply to an
individual who is a citizen or lawful permanent resident of the
United States, including an individual who is a citizen of a foreign
Sec. 5.253.  PROHIBITION ON PURCHASE OF OR ACQUISITION OF
TITLE TO REAL PROPERTY.  Except as provided by Section 5.252 and
notwithstanding any other law, the following may not purchase or
otherwise acquire title to real property in this state:
(1)  a governmental entity of China, Iran, North Korea,
(2)  a company or other entity that is:
(A)  headquartered in China, Iran, North Korea, or
(B)  directly or indirectly under the control of
the government of China, Iran, North Korea, or Russia; or
(C)  owned by or under the control of one or more
individuals who are citizens of China, Iran, North Korea, or
(3)  a company or other entity that is owned by or under
the control of a company or entity described by Subdivision (2); or
(4)  an individual who is a citizen of China, Iran,
SECTION 3.  Subtitle F, Title 10, Government Code, is
amended by adding Chapter 2278 to read as follows:
CHAPTER 2278. PROHIBITION ON CONTRACTS WITH CERTAIN FOREIGN
Sec. 2278.001.  DEFINITIONS.  In this chapter:
(1)  "Adverse foreign entity" means a governmental
entity or a company or other entity described by Section 5.253,
(2)  "Governmental entity" has the meaning assigned by
Sec. 2278.002.  PROHIBITED CONTRACTS.  (a)  This section
does not apply to an individual who is a citizen or lawful permanent
resident of the United States, including an individual who is a
(b)  In this section, "public money" means money of this
state, a state agency, or a political subdivision of this state or
money the state, state agency, or political subdivision controls or
(c)  Except as provided by Subsection (a), a governmental
entity may not enter into a contract or other agreement payable with
(1)  an adverse foreign entity; or
(2)  an individual who is a citizen of China, Iran,
SECTION 4.  (a)  Subchapter H, Chapter 5, Property Code, as
added by this Act, applies only to the purchase of or other
acquisition of title to real property on or after the effective date
of this Act. The purchase of or other acquisition of title to real
property before the effective date of this Act is governed by the
law in effect immediately before the effective date of this Act, and
that law is continued in effect for that purpose.
(b)  Chapter 2278, Government Code, as added by this Act,
applies only to a contract or other agreement entered into on or
after the effective date of this Act.
SECTION 5.  This Act takes effect September 1, 2025.