Foreign real estate investors in Texas could face a new political filter: the governor’s definition of a national threat.
The Texas House of Representatives gave preliminary approval Thursday to a revised version of Senate Bill 17 that would expand the governor’s authority to block land purchases by foreign entities, the Texas Tribune reported. The proposal marks a shift from previous proposals that would’ve based restrictions on lists maintained by U.S. intelligence officials.
The bill, authored by Sen. Lois Kolkhorst, a Republican from Brenham, originally barred land acquisitions by residents, governments and businesses from China, Iran, North Korea and Russia, countries designated by the U.S. Director of National Intelligence as national security threats. She introduced a similar bill in the last legislative session two years ago, but it died in the House.
But an amendment pushed through by Rep. Nate Schatzline, a Republican from Fort Worth, would allow the governor to unilaterally add countries or transnational criminal organizations, such as Venezuela’s Tren de Aragua gang, to the restricted list.
Schatzline said the change would let Gov. Greg Abbott “act swiftly” in the face of emerging threats.
Houston Rep. Gene Wu, chair of the House Democratic Caucus, said the bill gives the governor “unfettered power.” He argued the measure lacks oversight and could invite discriminatory enforcement.
The bill would apply to acquisitions made after Sept. 1 and exempts permanent residents. Amendments to protect visa holders were rejected, including for students, athletes and medical professionals.
The House also narrowed a previous Senate provision that would’ve allowed foreign entities to lease property for under 100 years; the threshold was reduced to one year.
Though the state does not track most foreign-owned real estate, data from the USDA shows Chinese investors held less than 1 percent of all foreign-owned agricultural land nationwide as of 2021. Still, GOP leaders have made the issue a priority.
Critics, including advocacy groups and Asian American lawmakers, warn that the bill could fuel racial profiling and inflame anti-Asian sentiment.
“Nobody knows what your immigration status is,” said Wu. “When they discriminate against you, they don’t really care what you are. They care that you have an Asian face.”
The House must hold one more vote before it returns to the Senate, which previously passed a different version of the bill.
Florida’s law banning buyers from China and six other countries faced significant legal challenges and was partially halted by a federal appeals court last year.
— Judah Duke
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