(Texas Scorecard) – In the Senate Committee on State Affairs, senators considered legislation that would protect Texas land from ownership by hostile foreign nations.
Senate Bill 17 by State Sen. Lois Kolkhorst (R-Brenham) would prohibit government entities, companies, and individuals that are domiciled in a country designated as a national security threat from acquiring “real property” in Texas. Real property includes agricultural land, commercial property, industrial property, and even mines.
Kolkhorst said the measure will allow foreign ownership of a residential homestead and it does not prohibit foreign business investments in Texas.
The countries that are subject to the measure must be identified in the Annual Threat Assessment reports from the Director of National Intelligence for three years. Currently, the four countries identified by the U.S. Intelligence Community as national security threats are China, Russia, Iran, and North Korea.
Notably, the measure refers to individuals domiciled in a country rather than referring to citizens, as it did in the last session’s proposal. Domiciled in common law looks to the connection of a person to the nation. The prohibitions expressly do not apply to United States citizens and lawful permanent residents, including those who have dual citizenship.
Kolkhorst highlighted that at least 22 states have enacted legislation regulating foreign ownership of real property.
Ruthie Bowman Russell, a Texas rancher, testified in favor of the measure. She told the senators, “We are fearful of the threats of Communist China—that the Communist Chinese pose—especially since Chinese National Intelligence law mandates all Chinese companies must assist the Chinese government [in collecting] intelligence.”
Russell also related the story of retired Chinese General Sun Guangxin, who had bought roughly seven percent of the land in South Texas. Guangxin had planned to build a wind farm on the part of his land near a U.S. military installation. His plans sparked many concerns over the potential national security threat.
Christopher Holton, senior analyst with the Center for Security Policy, testified to the threat posed by China.
“Countries like China and North Korea and Iran and Russia are different from other countries in the world in that they are foreign adversaries that have a history of threatening the national security of the United States,” said Holton.
The overarching threat right now is [the] country of Communist China. It’s a threat that should need no introduction but which includes a massive military buildup aimed at the U.S., threats directed at the U.S. and its allies, state-sponsored serial intellectual property theft, espionage, currency manipulation, and unfair trade practices, violations of American airspace, violations of international law, gross human rights [abuses], [and] state-sponsored organ harvesting.
Danny Woodard, a policy attorney with the Texas Civil Rights Project, testified against the measure because it “discriminates based on national origin.”
Several permanent residents and naturalized citizens from China also testified against the measure, arguing it creates fear for the immigrant community and could prevent them from owning property.
Chuck DeVore with the Texas Public Policy Foundation testified in favor of SB 17 and addressed many of the testimonies against.
I was listening carefully to the testimony of many of the individuals that came before me, and I was struck by the similarity and arguments much of that testimony. And further, the arguments actually did not respond at all to bill. They were talking about how they would be prevented from purchasing residential real estate. Well, the bill doesn’t address residential real estate. It doesn’t affect residential real estate. It also doesn’t affect citizens or individuals who are lawful permanent residents. So there was a lot of misperceptions that I heard in the testimony.
Sarah Syed, a community organizer, testified agains the measure, stating, “It opens the door to discrimination as it applies these restrictions without a regard to the individual’s lawful status, personal conduct, or actual threat posed.”
Andrew McVeigh, president of Texans for Fiscal Responsibility, testified in favor of the measure.
“Unchecked ownership by entities or individuals from possible nations with deep pockets and financial backing could lead to market distortions and hinder competition, increase costs and take away opportunities to protect services,” said McVeigh “Additionally, allowing foreign adversaries to control key assets, such as those near military installations or energy infrastructure, poses a direct risk to our economic and national security.”
The measure also provides the attorney general with enforcement power. If the attorney general suspects that a foreign purchase would put public safety at risk, the office can step in and take action.
SB 17 was flagged by Lt. Gov. Dan Patrick as one of his priorities for the 89th legislative session.