SB17

Regular Session

Relating to the purchase or acquisition of an interest in real property by certain aliens or foreign entities; creating a criminal offense; providing a civil penalty.

CriticalImmediate action required

High Cost

Effective:2025-09-01

Enforcing Agencies

Office of the Attorney General (Primary Investigation/Enforcement) • Office of the Governor (Designation of Countries/Entities) • Secretary of State (Discovery/Interrogatories) • District Courts (Receivership Appointments)

Compliance Analysis

Key implementation requirements and action items for compliance with this legislation

Implementation Timeline

Effective Date: September 1, 2025
Compliance Deadline: Immediate for all pipelines. Any transaction scheduled to close on or after September 1, 2025, must comply. There is no "grandfathering" for deals currently under contract but not yet closed.
Agency Rulemaking: The Office of the Attorney General (AG) is required to adopt investigative rules "as soon as practicable" after the effective date. Warning: The statute is self-executing. You are liable for prohibited transactions closing on September 2, 2025, even if the AG has not yet published official guidance.

Immediate Action Plan

Audit the Pipeline: Immediately review all pending transactions scheduled to close after September 1, 2025. If a buyer is prohibited, accelerate the close to August 31 or terminate the deal.
Update Templates: Revise all LOIs, PSAs, and MSAs to include SB17 compliance representations and termination rights.
Implement Questionnaires: Deploy a "Foreign Ownership Questionnaire" at the earliest stage of engagement (e.g., LOI or lease application) to filter ineligible counterparties before incurring deal costs.
Review Insurance: Consult with title underwriters regarding coverage gaps for government forfeiture/police power actions.

Operational Changes Required

Contracts

Purchase & Sale Agreements (PSAs): You must insert a "Prohibited Foreign Actor" representation clause. The Buyer must warrant they are not a prohibited entity under Texas Property Code Sec. 5.253.
Indemnification: Update contracts to require Buyer indemnification for all civil penalties (minimum $250,000) and legal costs if the state seizes the property due to Buyer misrepresentation.
Lease Agreements: Review all commercial and agricultural lease templates. Leases to prohibited foreign entities are only legal if the term is less than one year. Multi-year leases are now prohibited acquisitions.

Hiring/Training

Intake Procedures: Front-line staff (brokers, landmen, loan officers) must move beyond identity verification to citizenship and domicile verification.
Training: Staff must be trained to identify "red flag" corporate structures, particularly those involving shell companies in Delaware or Nevada that may shield foreign beneficial ownership.

Reporting & Record-Keeping

Affidavits of Eligibility: Require a sworn affidavit from every buyer/lessee attesting to their compliance with SB17 prior to closing.
Beneficial Ownership Mapping: For corporate buyers, retain certified organizational charts tracing ownership back to the ultimate individual beneficiaries.
CID Readiness: Update document retention policies to ensure immediate production of ownership records if served with a Civil Investigative Demand (CID) from the AG.

Fees & Costs

Civil Penalties: Violation carries a fine of the greater of $250,000 or 50% of the property’s market value. This is generally uninsurable.
Legal Overhead: Budget for increased legal spend on due diligence for complex entity structures (e.g., private equity funds with foreign limited partners).

Strategic Ambiguities & Considerations

"Indirect Control": The statute prohibits ownership by entities "indirectly held or controlled" by designated countries but does not define a percentage threshold (e.g., does a 5% stake constitute control?). Until the AG issues rules, treat *any* distinguishable ownership stake by a designated foreign entity as a high-risk factor.
Domicile vs. Residence: The law targets individuals *domiciled* in prohibited countries. Domicile involves "intent to return," which is subjective. The AG may aggressively investigate individuals based on citizenship alone, shifting the burden of proof to the individual to prove US domicile.
Fund Structures: It remains unclear how the AG will treat US-based investment funds with passive foreign capital. Conservative guidance suggests these funds are at risk of divestiture if foreign capital holds a majority interest.

Need Help Understanding Implementation?

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Information presented is for general knowledge only and is provided without warranty, express or implied. Consult qualified government affairs professionals and legal counsel before making compliance decisions.

Legislative Timeline

This bill's path through the Texas Legislature

TopicsAgriculture Aliens Property Interests Property Interests--real Property Attorney General Secretary of State International Relations

Official Analysis

View HRO Analysis View All Bill Documents

BILL ANALYSIS

Senate Research Center	S.B. 17
89R12845 DRS-F	By: Kolkhorst et al.
	State Affairs
	3/4/2025
	As Filed

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

This legislation is based on the language from S.B. 147 that passed the Texas Senate during the 88th Legislative Session. The goal of the legislation is to protect key land and natural resources from hostile countries and their actors named in the three most recent Annual Threat Assessment reports prepared by the Director of National Intelligence.

Many countries around the world and other states restrict ownership of land by certain foreign entities and individuals. Currently, the only federal law regarding foreign investment is the Agricultural Foreign Investment Disclosure Act of 1978 which only aims to regulate foreign investment through self-reported data. Texans have raised concerns of national security ranging from energy security to food security. Preventing private property rights from being controlled by entities from adversarial nations is key to ensuring national security.

Key Provisions

This bill prohibits the purchase of certain private property in Texas by governmental entities, companies, and individuals that are domiciled in a country that has been named in the three most recently published Annual Threat Assessment report prepared by the Director of National Security. This bill refers to individuals domiciled in a country.
This bill bans private property ownership by named entities, not foreign business investments in Texas.
The bill does not name a particular country but instead ties applicability of a country to a country designated as a threat by the Director of National Intelligence in the three most recently published Annual Threat Assessments. The three most recent publications allows the legislature time to make changes if the criteria of the report changes while ensuring the identification of a threatening country by the Director of National Intelligence is not a one-off event.
Makes clear that the prohibitions do not apply to United States citizens and lawful permanent residents, including dual citizens. The goal of this bill is to legislate common sense safeguards against the regimes identified as threats in the Annual Threat Assessment, not to those fleeing the tyranny of those governments who seek freedom in Texas. Additionally, prohibited real estate holdings will not include a residence homestead owned by individuals to address concerns of those seeking a home in Texas who have fled these adversarial regimes.
Clarifies the definition of real estate as: agricultural land, an improvement on agricultural land, commercial property, industrial property, residential property, a mine or quarry, a mineral in place, or standing timber.
Specifies that control of an entity means an individual or organization meeting test to determine they have actual control of the entities operations.
Also clarifies the enforcement mechanism is a divestment procedure initiated by the Attorney General. The Attorney General is given authority to investigate potential violations if they have reasonable suspicion and then bring a divestment proceeding before a court of law once a court determines the property is held by a prohibited entity it will be placed in receivership, following the process of Chapter 64, Civil Practices and Civil Remedies. This ensures that innocent actors such as lien holders, lenders and real estate professionals are not harmed by the actions of a prohibited entity.
The language of S.B. 17 also makes clear that only the Attorney General may bring action and shall record notice of the action in property actions in the county the property is located.

As proposed, S.B. 17 amends current law relating to the purchase of or acquisition of title to real property by certain aliens or foreign entities.

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 64.001(a), Civil Practice and Remedies Code, as follows:

(a)� Authorizes a court of competent jurisdiction to appoint a receiver:

(1)� makes no changes to this subdivision;

(2)� in an action by a creditor to subject any property or fund to the creditor's, rather than his, claim;

(3)-(4)� makes no changes to these subdivisions;

(5)� makes a nonsubstantive change to this subdivision;

(6)� in an action by the attorney general under Subchapter H, Chapter 5 (Conveyances), Property Code; or�

(7) creates this subdivision from existing text and makes no further changes.

SECTION 2. Amends Section 5.005, Property Code, to create an exception under Subchapter H.

SECTION 3. Amends Chapter 5, Property Code, by adding Subchapter H, as follows:

SUBCHAPTER H. PURCHASE OF OR ACQUISITION OF TITLE TO REAL PROPERTY BY CERTAIN FOREIGN INDIVIDUALS OR ENTITIES

Sec. 5.251.� DEFINITIONS. Defines "agricultural land," "designated country," "governing authority," "governing person," "organization," and "real property."

Sec. 5.252.� ORGANIZATION UNDER CONTROL OF INDIVIDUAL OR ANOTHER ORGANIZATION. (a) Provides that, for purposes of this subchapter, an organization is under the control of an individual or another organization if the controlling individual or organization is authorized to direct the activities of the controlled organization, make or direct others to make legal commitments on behalf of the controlled organization, or hire and fire a principal decision maker of the controlled organization.

(b)� Authorizes the authority of the controlling individual or organization under Subsection (a) to derive from exercise of a voting ownership interest of the controlled organization sufficient to elect a governing person or governing authority of the controlled organization to exercise on the controlling individual's or organization's behalf the authority described by Subsection (a), or a financial, legal, practical, contractual, or other arrangement that functionally enables the controlling individual or organization to exercise the authority described by Subsection (a).

Sec. 5.253.� EXCEPTIONS: UNITED STATES CITIZENS AND LAWFUL PERMANENT RESIDENTS; RESIDENCE HOMESTEAD PROPERTY; LEASEHOLD. Provides that this subchapter does not apply to:

(1) an individual who is a citizen or lawful permanent resident of the United States, including an individual who is a citizen of a foreign country;

(2)� an organization that is owned by or under the control of one or more individuals described by Subdivision (1);

(3)� real property that is intended for use as an individual's residence homestead, as defined by Section 11.13(j) (relating to defining "residence homestead," "trustor," and "qualifying trust"), Tax Code; or

(4)� a leasehold interest in land or improvements constructed on a leasehold if the duration of the interest is less than 100 years.

Sec. 5.254.� PROHIBITION ON PURCHASE OF OR ACQUISITION OF TITLE TO REAL PROPERTY.� (a) Defines "risk to the health, safety, and welfare of the public."

(b) Prohibits the following, except as provided by Section 5.253 and notwithstanding any other law,� from purchasing or otherwise acquiring title to real property in this state if the purchase of or acquisition of title to the property by the individual, organization, or governmental entity would create a risk to the health, safety, and welfare of the public:

(1)� a governmental entity of a designated country;

(2)� an organization that is headquartered in a designated country, directly or indirectly under the control of the government of a designated country, or owned by or under the control of one or more individuals who are domiciled in a designated country;

(3)� an organization that is owned by or under the control of an organization described by Subdivision (2); or

(4)� an individual who is domiciled in a designated country.

Sec. 5.255.� ATTORNEY GENERAL ENFORCEMENT. (a) Authorizes the attorney general, if the attorney general has a reasonable suspicion that the purchase of or acquisition of title to real property in this state by an individual, organization, or governmental entity in violation of this subchapter creates a risk to the health, safety, and welfare of the public, as defined by Section 5.254, to bring an action to enforce this subchapter in a district court in the county where all or part of the real property that is the subject of the violation is located.

(b)� Requires the attorney general to record notice of an action brought under Subsection (a) in the real property records of each county where any part of the real property subject to the action is located.

(c)� Provides that a purchase of or acquisition of title to real property in violation of Section 5.254 is not void because of the violation, and the validity or enforceability by any person of a purchase contract for or the conveyance of the real property is not otherwise affected by the violation.

Sec. 5.256. ATTORNEY GENERAL INVESTIGATION AND DISCOVERY; SECRETARY OF STATE INTERROGATORIES AND RECORDS.� (a)� Authorizes the attorney general to conduct discovery to investigate a potential action under Section 5.255 or in an action brought under Section 5.255, including by:

(1)� petitioning for an order authorizing the taking of a deposition under Rule 202, Texas Rules of Civil Procedure; or

(2)� if the attorney general has reason to believe that a person may be in possession, custody, or control of any documentary material or other evidence or may have any information relevant to an investigation of a suspected violation of Section 5.254, issuing in writing and serving on the person a civil investigative demand requiring the person to:

(A)� produce any of the documentary material for inspection and copying;

(B)� answer in writing any written interrogatories;

(C)� give oral testimony; or

(D)� provide any combination of civil investigative demands under Paragraph (A), (B), or (C).

(b)� Requires the secretary of state, on request by the attorney general, to:

(1)� serve interrogatories on an individual or entity as necessary to determine the ownership or control of an organization that is the subject of an action by the attorney general under Section 5.255; and

(2)� provide to the attorney general all records held by the secretary relating to the ownership or control of an organization that is the subject of an action by the attorney general under Section 5.255.

Sec. 5.257.� APPOINTMENT OF RECEIVER. (a) Requires the district court, if the court finds that the real property subject to an action brought under Section 5.255 was purchased or otherwise acquired by an individual, organization, or governmental entity in violation of Section 5.254, to enter an order that states the court's finding and appoints a receiver to manage and control the real property pending the sale or other disposition of the real property and return to the individual, organization, or governmental entity any proceeds of the sale or other disposition of the real property.

(b)� Provides that, on appointment and qualification, a receiver appointed under this section has the powers and duties of a receiver under Chapter 64 (Receivership), Civil Practice and Remedies Code.

SECTION 4. Makes application of this Act prospective.

SECTION 5. Effective date: September 1, 2025.

Senate Authors

Sen. Lois KolkhorstRepublican · Primary Author

Joint Authors

Coauthors (4)

House Sponsors

Rep. Phil KingRepublican · Primary Sponsor

Joint Sponsors

Cosponsors (65)

Bill Text(with markup)

S.B. No. 17

AN ACT

relating to the purchase or acquisition of an interest in real

property by certain aliens or foreign entities; creating a criminal

offense; providing a civil penalty.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. (a) The legislature finds the following as

informed by the determination of the United States Director of

National Intelligence in the 2025 Annual Threat Assessment of the

U.S. Intelligence Community issued pursuant to Section 108B,

National Security Act of 1947 (50 U.S.C. Section 3043b):

(1) with respect to China:

(A) China's dominance in the mining and

processing of critical materials is a particular threat, providing

it with the ability to restrict quantities and affect global

prices. Beijing has shown a willingness to restrict global access

to its mineral resources;

(B) China is using an aggressive

whole-of-government approach, combined with state direction of the

private sector, to become a global science and technology

superpower. It wishes to surpass the United States and achieve

further economic, political, and military gain;

illicit means;

(D) China has stolen hundreds of gigabytes of

intellectual property from companies across the world, including

from the United States;

(E) China is heavily investing in collecting

health and genetic data;

(F) China poses health risks to the world;

(G) Beijing will continue to expand its coercive,

subversive, and malignant influence activities to weaken the United

States. It seeks to suppress critical views of China within the

United States; and

(H) China has increased its capabilities to

conduct covert influence operations and disseminate

disinformation;

(2) with respect to Russia:

(A) Russia's advanced cyber capabilities, its

repeated success compromising sensitive targets for intelligence

collection, and its past attempts to access United States critical

infrastructure make it a persistent counterintelligence and cyber

attack threat; and

(B) Russia intentionally stokes political

discord in the West, including by amplifying preferred Russian

narratives. Russia discreetly engages Americans in these processes

while hiding Russia's involvement;

(3) with respect to Iran:

(A) Iran's growing expertise and willingness to

conduct aggressive cyber operations make it a major threat to the

security of the United States. Guidance from Iranian leaders has

incentivized cyber actors to become more aggressive in developing

capabilities to conduct cyber attacks;

(B) Iran remains committed to its long-standing

efforts to develop surrogate networks inside the United States; and

operations in the United States; and

(4) with respect to North Korea:

(A) North Korea may expand its ongoing cyber

espionage operations;

(B) North Korea continues to pursue military

capabilities that threaten the United States and enable North Korea

to undermine the United States;

North Korea has grown rapidly in recent years, reinforcing threats

from each. Such cooperation has strengthened their abilities to

harm the United States; and

(D) North Korea will continue to defy

international sanctions and engage in illicit activities,

including stealing cryptocurrency, sending labor overseas, and

trading UN-proscribed goods to resource and fund North Korea's

priorities.

(b) The legislature finds it necessary to exercise the

police power of this state as provided in this legislation.

SECTION 2. Section 64.001(a), Civil Practice and Remedies

Code, is amended to read as follows:

(a) A court of competent jurisdiction may appoint a

receiver:

(1) in an action by a vendor to vacate a fraudulent

purchase of property;

(2) in an action by a creditor to subject any property

or fund to the creditor's [~~his~~] claim;

(3) in an action between partners or others jointly

owning or interested in any property or fund;

(4) in an action by a mortgagee for the foreclosure of

the mortgage and sale of the mortgaged property;

(5) for a corporation that is insolvent, is in

imminent danger of insolvency, has been dissolved, or has forfeited

its corporate rights; [or]

(6) in an action by the attorney general under

Subchapter H, Chapter 5, Property Code; or

(7) in any other case in which a receiver may be

appointed under the rules of equity.

SECTION 3. Section 5.005, Property Code, is amended to read

as follows:

Sec. 5.005. ALIENS. Except as provided by Subchapter H, an

[An] alien has the same real and personal property rights as a

United States citizen.

SECTION 4. Chapter 5, Property Code, is amended by adding

Subchapter H to read as follows:

SUBCHAPTER H. PURCHASE OR ACQUISITION OF REAL PROPERTY BY CERTAIN

FOREIGN INDIVIDUALS OR ENTITIES

Sec. 5.251. DEFINITIONS. In this subchapter:

(1) "Agricultural land" means land that is located in

this state and that is suitable for:

(A) use in production of plants and fruits grown

for human or animal consumption, or plants grown for the production

of fibers, floriculture, silviculture, viticulture, horticulture,

or planting seed; or

(B) domestic or native farm or ranch animals kept

for use or profit.

(2) "Company" means a sole proprietorship,

organization, association, corporation, partnership, joint

venture, limited partnership, limited liability partnership, or

limited liability company, including a wholly owned subsidiary,

majority-owned subsidiary, parent company, or affiliate of those

entities or business associations, that exists to make a profit.

(3) "Designated country" means:

(A) a country identified by the United States

Director of National Intelligence as a country that poses a risk to

the national security of the United States in at least one of the

three most recent Annual Threat Assessments of the U.S.

Intelligence Community issued pursuant to Section 108B, National

Security Act of 1947 (50 U.S.C. Section 3043b); or

(B) a country designated by the governor under

Section 5.254.

(4) "Domiciled" means having established a place as an

individual's true, fixed, and permanent home and principal

residence to which the individual intends to return whenever

absent.

(5) "Organization" has the meaning assigned by Section

1.002, Business Organizations Code.

(6) "Real property" includes:

(A) agricultural land;

(B) an improvement located on agricultural land;

(D) industrial property;

(E) groundwater;

(F) residential property;

(G) a mine or quarry;

(H) a mineral in place;

(I) standing timber; or

(J) water rights.

(7) "Transnational criminal organization" means two

or more persons:

(A) who are citizens of or domiciled in a

designated country;

(B) with an identifiable leadership who operate

internationally; and

engage in corruption, violence, or the commission of other criminal

activities.

Sec. 5.252. EXCEPTIONS: UNITED STATES CITIZENS AND LAWFUL

RESIDENTS; CERTAIN ENTITIES OWNED OR CONTROLLED BY UNITED STATES

CITIZENS OR LAWFUL RESIDENTS; LEASEHOLD. This subchapter does not

apply to:

(1) an individual who is a citizen or lawful permanent

resident of the United States;

(2) a company or organization that is owned by or under

the control of:

(A) one or more individuals described by

Subdivision (1); and

(B) no individual described by Section 5.253; or

(3) a leasehold interest in land or improvements

constructed on a leasehold if the duration of the interest is less

than one year.

Sec. 5.253. PROHIBITION ON PURCHASE OR ACQUISITION OF REAL

PROPERTY. Notwithstanding any other law, the following may not

purchase or otherwise acquire an interest in real property in this

state:

(1) a governmental entity of a designated country;

(2) a company or organization that is:

(A) headquartered in a designated country;

(B) directly or indirectly held or controlled by

the government of a designated country;

ownership interest of which is held or controlled by individuals

described by Subdivision (4); or

(D) designated by the governor under Section

5.254;

(3) a company or organization that is owned by or the

majority of stock or other ownership interest of which is held or

controlled by a company or organization described by Subdivision

(2); or

(4) an individual who:

(A) is domiciled in a designated country, except

that an individual who is lawfully present and residing in the

United States at the time the individual purchases or acquires the

interest may purchase or acquire an interest in a residential

property that is intended for use as an individual's residence

homestead, as defined by Section 11.13(j), Tax Code;

(B) is a citizen of a designated country who is

domiciled outside of the United States in a country:

(i) other than a designated country; and

(ii) for which the individual has not

completed the naturalization process for becoming a citizen of that

country;

unlawfully present in the United States;

(D) is:

(i) a citizen of a country other than the

United States; and

(ii) acting as an agent or on behalf of a

designated country; or

(E) is a member of the ruling political party or

any subdivision of the ruling political party in a designated

country.

Sec. 5.254. DESIGNATION OF COUNTRY OR ENTITY AS SUBJECT TO

PROHIBITION ON PURCHASE OR ACQUISITION OF REAL PROPERTY. (a) The

governor, after consultation with the public safety director of the

Department of Public Safety, may, for purposes of Section 5.253:

(1) determine whether the purchase or acquisition of

an interest in real property in this state by an individual or

entity poses a risk to the national security of the public; and

(2) based on a determination made under Subdivision

(1):

(A) designate a country or a transnational

criminal organization or other entity as subject to this

subchapter; or

(B) remove a designation made under Paragraph

(A).

(b) The governor shall consult the Homeland Security

Council established under Subchapter B, Chapter 421, Government

Code, for purposes of making or removing a designation under this

section.

country or entity under this section applies only to the purchase or

acquisition of an interest in real property that occurs on or after

the date the governor designates or removes the designation of the

country or entity.

Sec. 5.255. INVESTIGATION AND ENFORCEMENT BY ATTORNEY

GENERAL; LAW ENFORCEMENT REFERRAL. (a) The attorney general shall

establish procedures to examine a purchase or acquisition of an

interest in real property and determine whether an investigation of

a possible violation of this subchapter is warranted.

(b) If the attorney general determines that an

investigation of a purchase or acquisition of an interest in real

property is warranted under this section, the attorney general

shall investigate the purchase or acquisition of an interest in

real property and determine whether a violation of this subchapter

occurred.

this subchapter occurred, the attorney general:

(1) may bring an in rem action against real property to

enforce this subchapter in a district court in the county where all

or part of the real property that is the subject of the violation is

located; and

(2) may refer the matter to the appropriate local,

state, or federal law enforcement agency.

(d) The attorney general shall record notice of an action

brought under Subsection (c) in the real property records of each

county where any part of the real property subject to the action is

located.

(e) Except for an acquisition of a leasehold interest, a

purchase or acquisition of an interest in real property in

violation of Section 5.253 is not void because of the violation, and

the validity or enforceability by any person of a purchase contract

for or the conveyance of an interest in the real property is not

otherwise affected by the violation.

Sec. 5.256. ATTORNEY GENERAL INVESTIGATION AND DISCOVERY;

SECRETARY OF STATE INTERROGATORIES AND RECORDS. (a) The attorney

general may conduct discovery to investigate a potential action

under Section 5.255 or in an action brought under Section 5.255,

including by:

(1) petitioning for an order authorizing the taking of

a deposition under Rule 202, Texas Rules of Civil Procedure; or

(2) if the attorney general has reason to believe that

a person may be in possession, custody, or control of any

documentary material or other evidence or may have any information

relevant to an investigation of a suspected violation of Section

5.253, issuing in writing and serving on the person a civil

investigative demand requiring the person to:

(A) produce any of the documentary material for

inspection and copying;

(B) answer in writing any written

interrogatories;

(D) provide any combination of civil

investigative demands under Paragraph (A), (B), or (C).

(b) The secretary of state shall on request by the attorney

general:

(1) serve interrogatories on an individual or entity

as necessary to determine the ownership or control of an

organization that is the subject of an action by the attorney

general under Section 5.255; and

(2) provide to the attorney general all records held

by the secretary relating to the ownership or control of an

organization that is the subject of an action by the attorney

general under Section 5.255.

Sec. 5.257. DIVESTITURE; APPOINTMENT OF RECEIVER;

DISTRIBUTION OF SALE PROCEEDS. (a) If the district court finds

that the real property subject to an action brought under Section

5.255 was purchased or an interest in the real property was

otherwise acquired in violation of Section 5.253, the court shall:

(1) enter an order that:

(A) states the court's finding;

(B) orders the divestment of the individual's or

entity's interest in the real property; and

(i) divest the individual's or entity's

interest in the real property through sale, termination of a

leasehold, or other disposition of the interest; and

(ii) manage and control the real property

pending the sale or other disposition of the interest in the real

property; and

(2) refer the matter to the appropriate prosecuting

attorney for criminal prosecution of any appropriate criminal

offense in connection with the transaction.

(b) On appointment and qualification, a receiver appointed

under this section has the powers and duties of a receiver under

Chapter 64, Civil Practice and Remedies Code.

interest in real property under an order described by Subsection

(a) shall be applied first to satisfy any existing liens on the

property and then to pay the reasonable costs incurred by the state

in enforcing this subchapter. The remaining proceeds shall be

remitted to the individual or entity that purchased or otherwise

acquired the interest in violation of this subchapter.

Sec. 5.258. OFFENSE; PENALTY. (a) A person commits an

offense if the person:

Showing first 50k characters.

View bill text in multiple formats on Texas Legislature website

Fiscal NoteView Original

LEGISLATIVE BUDGET BOARD
Austin, Texas

FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION


March 6, 2025

TO:	Honorable Bryan Hughes, Chair, Senate Committee on State Affairs

FROM:	Jerry McGinty, Director, Legislative Budget Board

IN RE:	SB17 by Kolkhorst (Relating to the purchase of or acquisition of title to real property by certain aliens or foreign entities.), As Introduced

No significant fiscal implication to the State is anticipated.

It is assumed that any costs associated with the bill could be absorbed using existing resources.

Local Government Impact

No significant fiscal implication to units of local government is anticipated.

Source Agencies:

212 Office of Court Administration, Texas Judicial Council, 302 Office of the Attorney General, 307 Secretary of State

LBB Staff:

JMc, WP, DA, JPa

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Frequently Asked Questions

Common questions about SB17

What does Texas SB17 do?

Senate Bill 17 imposes a strict liability ban on the acquisition of any Texas real property interest—including mineral, water, and timber rights—by individuals or entities domiciled in China, Russia, Iran, or North Korea. Effective September 1, 2025, this law mandates rigorous "Know Your Buyer" due diligence for all sellers, brokers, and title companies to avoid mandatory divestiture, criminal charges, and civil penalties starting at $250,000. Implementation Timeline Effective Date: September 1, 2025 Compliance Deadline: Immediate for all pipelines.

Who authored SB17?

SB17 was authored by Texas Senator Lois Kolkhorst during the Regular Session.

When was SB17 signed into law?

SB17 was signed into law by Governor Greg Abbott on June 20, 2025.

Which agencies enforce SB17?

SB17 is enforced by Office of the Attorney General (Primary Investigation/Enforcement), Office of the Governor (Designation of Countries/Entities), Secretary of State (Discovery/Interrogatories) and District Courts (Receivership Appointments).

How urgent is compliance with SB17?

The compliance urgency for SB17 is rated as "critical". Businesses and organizations should review the requirements and timeline to ensure timely compliance.

What is the cost impact of SB17?

The cost impact of SB17 is estimated as "high". This may vary based on industry and implementation requirements.

What topics does SB17 address?

SB17 addresses topics including agriculture, aliens, property interests, property interests--real property and attorney general.

Legislative data provided by LegiScanLast updated: November 25, 2025

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