Regular Session
Government Affairs & Regulatory Compliance Analysis
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.
Sen. Lois Kolkhorst·Senate Bill·Regular Session
This legislation has regulatory implications for the following Texas businesses and organizations:
Significant regulatory changes (effective 2025-09-01). Review with your legal and compliance teams to understand implications.
Affected business types:
highSignificant operational investment may be required.
JD Key Consulting provides government affairs and regulatory strategy services. We help businesses navigate Texas agencies, understand legislative impacts, and advocate for their interests.
JD Key Consulting provides strategic guidance on Texas regulatory compliance and legislative impact for your business.
Key implementation requirements and action items for compliance with this legislation
JD Key Consulting specializes in Texas regulatory compliance strategy. Work directly with James Dickey—former Chairman of the Republican Party of Texas—to understand this bill's impact on your operations and develop an actionable compliance plan.
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This bill's path through the Texas Legislature
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Common questions about SB17
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.
SB17 was authored by Texas Senator Lois Kolkhorst during the Regular Session.
SB17 was signed into law by Governor Greg Abbott on June 20, 2025.
SB17 is enforced by District Courts (Receivership Appointments), Office of the Attorney General (Primary Investigation/Enforcement), Office of the Governor (Designation of Countries/Entities) and Secretary of State (Discovery/Interrogatories).
The regulatory priority for SB17 is rated as "critical". Businesses and organizations should review the legislation to understand potential impacts.
The cost impact of SB17 is estimated as "high". This may vary based on industry and implementation requirements.
SB17 addresses topics including agriculture, aliens, property interests, property interests--real property and attorney general.
Key dates for SB17: Effective date is 2025-09-01. Rulemaking: Adopt rules for the implementation of Property Code Subchapter H (investigation procedures and enforcement) (As soon as practicable after 2025-09-01). Consult with legal counsel regarding applicability.
SB17 establishes the following penalties: civil penalty of Greater of $250,000 or 50% of the market value of the property interest for Violation of ownership prohibition by a company or entity; criminal penalty of State Jail Felony (punishable by confinement and fines) for Intentional or knowing purchase of real property by a prohibited individual; civil/equitable penalty of Forced Divestiture (Receivership) for Court finding of ownership in violation of the Act; proceeds used to pay state costs before returning remainder to owner. Consult with legal counsel for specific applicability to your situation.
SB17 primarily affects property owners and real estate professionals. These businesses should review the legislation with their legal and compliance teams to understand potential impacts.
JD Key Consulting is an Austin, Texas-based government affairs firm led by James Dickey, former Chairman of the Republican Party of Texas. We specialize in Texas regulatory compliance and legislative strategy for data centers, energy, banking, and manufacturing.
