Texas House approves bill that prohibits land sales to some foreign buyers

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AUSTIN, Texas - People and entities from certain countries identified as a threat to U.S. interests might soon be unable to purchase land in Texas.

Senate Bill 17 would prevent "real property" sales to residents and governments of and companies based in countries that are listed on the U.S. threat assessment. Currently, four countries are listed on the assessment: China, Russia, Iran and North Korea. 

A change on Thursday, however, would allow the governor to determine which countries are on the list that are prohibited from buying property in the state.

The bill would require the attorney general's office to develop an investigative process for possible violations and then refer those findings to a district court. The court could then require the purchaser to divest from the property by selling or terminating the lease. 

What they're saying:

Supporters of the bill say it protects national security interests and protects critical infrastructure and natural resources in Texas. 

"If we don't pass Senate Bill 17 today in the House, we run the very real risk of losing our land, our natural resources and our supply chains to our adversaries," Rep. Cole Hefner said during the bill's closing on Friday. "I implore you to stand with me today and send a powerful message to hostile foreign nations and their oppressive regimes that Texas is not for sale."

Opponents say the bill opens up people lawfully present in the state to discrimination and possible violence, especially Asian-Americans. They worry the bill could lead to violations of the Fair Housing Act.

"I understand the intent behind SB17. Protecting our state from foreign adversaries seeking to exploit our land for surveillance or harmful purposes is a serious concern and it's crucial we address those risks early," Rep. Salman Bhojani said. "Unfortunately, the core of this legislation remains rooted in exclusion."

What's next:

Despite a contentious debate, the bill passed third reading Friday on a 86-59 vote.

The bill now heads back to the Senate so they can consider the changes made in the House. 

A version of the bill passed the Senate before being amended by the House.

If passed, the bill would go into effect on Sept. 1 and only apply to purchases made after that date.