AUSTIN – Texas Attorney General Ken Paxton has proposed a set of rules to implement and administer a state Senate bill that prohibits certain designated foreign entities from owning land in Texas.
This proposal begins the formal rulemaking process, which includes a public comment period before any rules may be finalized.
“My office will use every tool available to prevent our nation’s enemies from gaining a foothold on Texas soil,” Paxton said. “These proposed rules will strengthen the reporting of suspicious activity and better protect our state from hostile foreign actors.”
The Texas Legislature passed SB 17 during the 89th Legislative session, and the law took effect September 1. It restricts the purchase or acquisition of real property by certain individuals and entities from designated adversarial nations, including China, Russia, Iran and North Korea.
It also aims to mitigate national security risks and protect Texas land and critical infrastructure from foreign threats.
Paxton’s office has proposed comprehensive rules to guide future implementation. Those proposed rules define key terms, outline the structure and authority of the AG’s office and detail investigative procedures, including civil investigative demands and response requirements.
The proposed rules also address reporting obligations, confidentiality protections, and include savings and severability clauses. The proposed rules were submitted March 16 to the Secretary of State and published March 27 in the Texas Register.
Under these rules, individuals and entities involved in facilitating real estate transactions such as a mortgage lender, title insurance company, property insurer, appraiser or licensed real estate professional would be required to report any suspected violations of the law to the Office of the Attorney General.
Complaints would be required to be submitted electronically through the AG’s office’s online complaint form found on the agency’s website or by mail to the address designated by the AG’s office for this purpose.
Under the proposed rules, all complaints, civil investigative demands, and related materials submitted to or issued by the AG’s office would be confidential and not subject to public disclosure, except as required by law.
