Senate Bill 17 would ban some people, companies and government entities from China, Russia, Iran and North Korea from buying property in Texas.
AUSTIN, Texas — A bill that would ban people from certain countries from owning land in Texas is now headed to Governor Greg Abbott’s desk, after lawmakers in both the Texas House and Senate agreed on changes made to Senate Bill 17.
The legislation, which was authored by State Sen. Lois Kolkhorst (R-Brenham) and then shepherded through the House by State Rep. Cole Hefner (R-Mt. Pleasant), would block people from designated nations that “pose national security threats” from purchasing land in Texas.
“We were able to craft the strongest national security bill that this nation has ever seen from any state,” Kolkhorst said.
Supporters argue this is a matter of national security and protecting natural resources, but critics say SB 17 creates a slippery slope and targets immigrants and communities of color under the guise of national security.
The upper chamber passed Senate Bill 17 in April, but the version that passed the Texas House was different.
When it came back from the House, Sen. Kolkhorst elected not to concur with the House amendments to the bill and requested a conference committee, where lawmakers from both chambers met behind closed doors to work out their differences. She said Friday the changes House lawmakers made to the bill strengthened it. The House concurred with the conference committee report on Thursday and the Senate did the same shortly thereafter.
Shortly after that happened, Kolkhorst held a press conference, joined by Hefner and several other members of the Texas House and Texas Senate.
“Texas is not for sale. It is not for sale to our enemy countries and that is what Senate Bill 17 does,” Kolkhorst said. “It says very loud and clear to our nation, to our adversaries that want to harm our state and nation. ‘You’re not buying up Texas land. You’re not buying up Texas’ natural resources.'”
SB 17 would restrict people or entities from countries designated as national security threats from buying property in Texas. It would apply to governmental entities and organizations headquartered in or directly tied to those countries.
It bars “a citizen of a designated country and is domiciled outside of the United States” or has “unlawfully entered the United States at a location other than a lawful port of entry” from purchasing “real property.”
“Real property” includes agricultural land, commercial property, mines, quarries and industrial property. According to the USDA, approximately 5.7 million acres of land in Texas is foreign-owned, with China accounting for around 3.6% of that land.
“We cannot, and we will not allow for oppressive regimes who actively seek to do us harm, to seize control and dictate their terms over our economy, our supply chains, our daily lives, our critical infrastructure or our food supply,” Rep. Cole Hefner said.
The ban applies to countries based on designations made by the Director of National Intelligence. The latest annual threat assessment lists China, Russia, Iran and North Korea as countries “engaging in competitive behavior that directly threatens U.S. national security.” The “designated country” has to be identified on “one of the three most recent” Annual Threat Assessments.
People and companies from countries on that list would be banned from purchasing Texas real estate.
“We are very open to foreign countries coming to invest in our country and purchase our assets, but land is key to our security.” State Sen. Juan “Chuy” Hinojosa (D-McAllen) said. “These are hostile nations. We’re not targeting a specific population. We are trying to target those nations who are a threat to our freedom, to our democracy.”
Sen. Hinojosa called it a “huge step” in the right direction in trying to make sure that Texas is protected from hostile foreign nations.
“We didn’t list every country. Only those countries be identified who we have identified as a threat to our nation, and we know who they are,” Hinojosa said. “It’s not about people. It’s about government and the nations who don’t care and are in competition and are hostile to who we are as a country.”
The governor’s office has the power to add countries or a transnational criminal organization, such as the Venezuelan gang Tren de Aragua, to the list.
“The governor must consult with the public safety director of the Department of Public Safety as well as the Homeland Security Council to determine whether the purchase or acquisition of an interest in real property in the state by an individual or an entity poses a risk to the national security of the public,” Kolkhorst said.
The power to allow Gov. Abbott to determine which countries are banned from buying property in the state was added to SB 17 in an amendment proposed in the House by State Rep. Nate Schatzline (R-Fort Worth).
While supporters argue that it would allow the state to address any threat more quickly, Sarah Cruz, a policy and advocacy strategist for immigrants’ rights at the American Civil Liberties Union of Texas, warned that it could create a slippery slope.
“The bill gives the governor and attorney general the unconstitutional power to dictate foreign policy and target countries and residents on a whim,” Cruz said.
U.S. citizens and lawful permanent residents are not affected. However, there cannot be any ownership connection to any prohibited person or governmental entity.
“If you’re lawfully present in this country, you are able to buy a home,” Kolkhorst said. “It’s just you’re not able to buy 20 homes, you’re not able to buy, maybe a commercial building, and you’re not able to buy oil and gas or water rights.”
Kolkhorst said those lawfully present or asylum seekers can buy a homestead of up to ten acres inside the city limits and up to 20 acres in rural areas.
There has been some concern among some Asian Americans who believe the bill is discriminatory and unconstitutional and paves the way for widespread racial profiling of visa holders, asylees, and refugees.
Cruz said it would lead to heightened scrutiny and unfair denials when owning or purchasing commercial, agricultural and investment properties.
“S.B. 17 denies people meaningful access to housing and business opportunities,” she said. “The bill would promote racial profiling against citizens and non-citizens wanting to purchase or lease property, as well as cause sellers to discriminate against potential buyers.”
Cruz said the bill violates the First Amendment and the Equal Protection Clause of the 14th Amendment of the U.S. Constitution by banning individuals based solely on their nationality or political associations. However, state lawmakers said that is not the case.
“The bill makes clear that it’s not about where you’re from. It’s about people’s actions,” Hefner said. “We were careful to keep those American ideals alive and those opportunities for people to escape those evil regimes. The people that suffer the most under these communist regimes are the citizens of that country. We want to maintain that pathway to live the American dream as long as it’s done in the right way and people are vetted.”
Kolkhorst said Friday that state lawmakers worked with the solicitor general and the Attorney General’s office to create the bill and ensure it is constitutional.
If signed into law by Gov. Abbott, the bill would go into effect Sept. 1 and would only apply to purchases or acquisitions after that date.
If the bill passes, the Texas Attorney General’s Office would enforce the law through court action. If a district judge finds evidence of an illegal purchase, an owner would have to divest. They could also face civil penalties and fines of whatever amount is larger, $250,000 or 50% of the market value of the real interest in the property.
“Senate Bill 17 is the centerpiece, is the centerpiece of what Texas is doing to stand up against threats from hostile foreign adversaries, not foreign people,” State Sen. Bryan Hughes (R-Mineola) said. “We love all people. We do not support hostile foreign governments that are very open about their designs on us, and we will not let them mess with Texas.”
In the 88th Legislative Session, Kolkhorst filed a similar bill, Senate Bill 147. One significant difference is that it prohibited individuals and companies from specific countries from purchasing land. That bill passed the Senate but died in the House. Nearly two dozen other states have enacted similar legislation. Kolkhorst told reporters Friday that the bill headed to Gov. Abbott’s desk, SB 17, is stronger than the legislation lawmakers considered two years ago.