Bill: HB 2825, 87(R) - 2021

Committee

House Defense & Veterans' Affairs

Vote Recommendation

Vote Recommendation Economic Freedom Property Rights Personal Responsibility Limited Government Individual Liberty
Neutral Neutral Neutral Neutral Neutral Neutral

Author(s)

Greg Bonnen
John Cyrier
Eddie Morales

Bill Caption

Relating to reporting requirements for certain loan and title insurance transactions involving foreign companies and real property located near military bases.

Fiscal Notes

No significant fiscal implication to the state is anticipated.

Bill Analysis

HB 2825 would require financial institutions and title insurance companies to identify, before approving loans for the purchase, lease, development, or renovation of real property or insurance policy, applicants whose real property is located within 25 nautical miles of the boundaries of a military base in Texas, and is not zoned or intended to be used for residential use only. Financial institutions providing such a loan would be required to determine if the company applying for the loan is:

Scrutinized companies have business operations that involve contracts with or providing supplies/services to the government of Sudan; the government of Sudan has a direct or indirect equity share, a Sudan-commission consortium or project, or a company involved in a government of Sudan-commissioned consortium or project, or supplies military equipment in Sudan.

HB 2825 would apply regardless of whether the company or its parent company's securities are publicly traded or is listed on a public stock exchange as a Chinese, Iranian, North Korean, or Russian company. To help financial institutions and title insurance companies accomplish this determination, financial institutions would be given access to the comptroller list of all scrutinized companies. 

HB 2825 would not prohibit a financial institution or a title insurance company from approving an applicant, and requires each financial institution or insurance companies to submit a report to the Texas Military Preparedness Commission by December 31 of each year that identifies each of these kinds of loans. HB 2825 would require the commission to then submit this information in their biennial report. 

Vote Recommendation Notes

HB 2825 is a bill designed to promote national security and does place requirements on the title insurance and financial institution industries. This is done in a measured way that does not establish a fine, fee, or penalty. For this reason, Texas Action is neutral on HB 2825. 

Source URL (retrieved on 03/28/2024 03:03 PM): http://reports.texasaction.com/bill/87r/hb2825?print_view=true